1.

Understanding Fusion Payables and User Roles in Simple Terms

Fusion Payables is a system used for processing invoices and payments in a company.
Think of it as the department that manages money going out—paying suppliers, vendors,
and handling invoices.

Who Handles Payables?

The Payables Department is responsible for managing all financial transactions related to
outgoing payments.

Key Roles in Fusion Payables

To perform different activities in the system, users need specific roles. There are three main
roles:

1.​ Accounts Payable supervisor​

2.​ Payables Specialist​

3.​ Payables Manager​

Each of these roles has different responsibilities:

Role Responsibilities

AP Specialist Invoice creation, Invoice inquiry

AP Invoice hold, Invoice management, Payment

Supervisor creation

AP Manager Can do all the above + Close accounting periods

In simple words:

●​ A Specialist can create and check invoices.​

●​ A Supervisor can manage invoices and payments.​

●​ A Manager has full control and can close accounting periods.​

Steps to Assign These Roles

To allow a user to access and work in the Payables system, you need to assign them roles.

Step 1: Assign Roles to a User

 1.​ Go to Navigator → Tools → Security Console​

2.​ Click on the Users tab and search for the user.​

3.​ Select the user name, then click Edit.​

4.​ Add the following roles:​

○​ Accounts Payable Manager​

○​ Accounts Payable Specialist​

○​ Accounts Payable Supervisor​

5.​ Click Save and Close​

Step 2: Assign Data Access to User

1.​ Go to Settings and Actions → Navigator → Setup and Maintenance​

2.​ Select Financials → Users and Security → Manage Data Access for Users​

3.​ Click Add (+) Button, then enter the required business unit.​

4.​ Assign the correct Business Unit (e.g., Petrochemicals Southern) to the user.​

5.​ Click Save and Close​

Step 3: Run LDAP Process (If Needed)

●​ Sometimes, user roles do not sync immediately. If that happens, run the LDAP
Process to update user access.​

●​ Otherwise, simply sign out and sign in to refresh access.​

Final Step: Verify Access

Once the roles are assigned and the user signs back in, they will be able to access the
Invoices and Payments Dashboard in Payables.

Real-World Example

Imagine a company called XYZ Ltd.

 ●​ Rahul is a Payables Specialist. He can create invoices but cannot process
payments.​

●​ Priya is a Supervisor. She can approve Rahul’s invoices and create payments.​

●​ Amit is the Payables Manager. He can manage everything and close the books at
the end of the month.​

This structure ensures proper financial control and prevents unauthorized transactions.

Let me know if you need further simplification! 😊

2.Understanding Procure-to-Pay (P2P) Cycle in Simple Terms

The Procure-to-Pay (P2P) Cycle is the process that companies follow to purchase
goods/services and pay for them. This is similar to how we buy things in our personal life.

For example, if you want to buy a laptop for an online course, you follow certain steps:

1.​ Identify the Need – You realize you need a laptop.​

2.​ Check Availability – You ask family members if they have an extra one.​

3.​ Research & Compare Prices – You visit multiple stores and ask for prices.​

4.​ Select the Best Option – Based on price and features, you choose the best deal.​

5.​ Place the Order – You confirm the purchase with the store.​

6.​ Receive the Product – You check the laptop when it arrives.​

7.​ Make the Payment – You pay using cash, UPI, or EMI.​

8.​ Keep Records – You store the bill for warranty purposes.​

Companies follow the same process, but in a more structured and documented way.

Procure-to-Pay Cycle in Business

Step 1: Requirement Identification

●​ In a company, when there is a need for a product (e.g., laptops, office supplies, raw
materials), a purchase request is raised.​
 ●​ This request goes to the purchasing department for approval.​

●​ Just like how you ask your parents before buying something if you don’t earn yet!​

Step 2: Checking Availability

●​ If the company already has the required item in stock, they use it instead of
purchasing.​

●​ If not available, they proceed with purchasing from an external supplier.​

Step 3: Request for Quotation (RFQ)

●​ The company prepares an RFQ (Request for Quotation) and sends it to multiple
vendors to get price details.​

●​ This is like when you visit different stores and ask for laptop prices.​

Step 4: Vendor Selection

●​ Vendors (suppliers) send back their quotations with prices and terms.​

●​ The company compares the quotations and selects the best option.​

●​ Similar to how you choose the best deal after comparing 3-4 showrooms.​

Step 5: Purchase Order (PO) Creation

●​ Once the best vendor is selected, the company creates a purchase order (PO) and
sends it to the vendor.​

●​ A PO is a formal order document confirming the purchase.​

●​ In personal life, this is like going back to the showroom and saying, "I want to buy this
laptop."​

Step 6: Goods Delivery & Inspection

●​ The vendor delivers the goods.​

●​ The company checks if everything is in good condition before accepting.​

 ●​ In personal life, when you buy a laptop, you check if it works properly before making
the final payment.​

Step 7: Invoice Generation

●​ The vendor sends an invoice (bill) to the company for payment.​

●​ In personal life, when you buy something, the shopkeeper gives you a bill.​

Step 8: Payment Processing

●​ The company processes the payment using bank transfers, cheques, or other
payment methods.​

●​ In personal life, this is when you pay with cash, UPI, or card.​

Step 9: Reconciliation & Accounting

●​ The company checks whether the payment has been credited successfully to the
vendor.​

●​ This is called reconciliation and is done using cash management systems.​

●​ The entire transaction is recorded in accounting books (General Ledger - GL).​

●​ Similar to how you keep a receipt or a bank statement for proof of purchase.​

Business Applications Involved in P2P Cycle

Multiple business applications are used during the P2P process:

Step Application Used

Purchase Request Procurement Module

Vendor Selection Procurement Module

Purchase Order Procurement Module

Goods Receipt Inventory Module

Invoice Accounts Payable (AP)

Processing
 Payment Cash Management

Accounting Subledger Accounting (SLA) & General Ledger (GL)

This process ensures that businesses track all expenses properly and avoid fraud or
errors in purchasing.

Real-Life Example
Imagine ABC Ltd., a construction company, needs cement for a project:

1.​ They check if cement is available in their warehouse → (Inventory Check)​

2.​ If not available, they ask multiple suppliers for quotations → (RFQ Process)​

3.​ They compare prices and select the best supplier → (Vendor Selection)​

4.​ They send a purchase order to the supplier → (PO Creation)​

5.​ The supplier delivers the cement → (Goods Receipt)​

6.​ ABC Ltd. checks the cement quality → (Inspection)​

7.​ The supplier sends an invoice → (Invoice Processing)​

8.​ ABC Ltd. makes the payment via bank transfer → (Payment & Reconciliation)​

9.​ The transaction is recorded in accounts → (Accounting & General Ledger)​

 ​
​
Conclusion
The Procure-to-Pay (P2P) cycle is a crucial process that helps businesses efficiently
purchase, track, and pay for goods/services.

It follows the same logic we use in personal life when making big purchases, ensuring
proper documentation, vendor selection, and payment processing to maintain financial
accuracy.

Let me know if you need further clarification! 😊

​
​
3.Accounts Payable (AP) Integration in Oracle Fusion

Accounts Payable (AP) is an essential module in Oracle Fusion that helps businesses
manage supplier invoices, payments, and financial tracking. AP integrates with several
other modules to ensure smooth financial operations.

Let’s break it down step by step:

Which Applications Integrate with AP?

AP integrates with multiple applications in Oracle Fusion, mainly:

Module Purpose of Integration with AP

Procurement To process invoices for purchased goods/services.

Projects To track costs related to company projects.

Tax To calculate and apply applicable taxes on invoices.

Receivables To handle supplier refunds and adjustments.

Cash Management To reconcile payments and manage cash flow.

Expenses To reimburse employee expenses.

General Ledger (GL) To record all financial transactions in company books.

Supplier Portal To enable suppliers to submit invoices and track payments.

Fusion Assets To manage and track purchased assets (e.g., machinery,

equipment).
How AP Integrates with Other Modules?
Let’s see how each module connects to Accounts Payable (AP):

1. AP & Procurement

●​ When a company purchases goods or services, an invoice is generated in AP

based on the Purchase Order (PO).​

●​ Example: A company orders laptops from a vendor. Once delivered, AP records the
invoice and initiates payment.​

2. AP & Projects

●​ If a company runs projects, it needs to track expenses related to those projects.​

●​ AP ensures invoices are linked to the correct project so costs can be tracked
accurately.​

●​ Example: A construction company buys materials for a new building project. The
invoice is linked to the specific project.​

3. AP & Tax

●​ When processing invoices, taxes (GST, VAT, etc.) must be calculated.​

●​ AP integrates with the Tax module to apply the correct tax rates.​

●​ Example: A company buys office furniture, and GST is automatically added before
processing the payment.​

4. AP & Receivables

●​ Sometimes suppliers issue credit memos (refunds) for overpayments or product

returns.​

●​ AP and Receivables work together to process these adjustments.​

●​ Example: A company returns defective laptops to the supplier, and the supplier
refunds the amount through Receivables.​

5. AP & Cash Management

 ●​ Once an invoice is approved, the payment is processed through Cash
Management.​

●​ It helps track bank balances, payment reconciliations, and cash flow.​

●​ Example: A company pays ₹10 lakhs to a supplier, and Cash Management ensures
the amount is deducted from the bank account.​

6. AP & Expenses

●​ Employee travel, food, and office expenses are recorded in the Expense module.​

●​ AP processes the reimbursement payments for employees.​

●​ Example: An employee submits a ₹5,000 travel claim, which AP processes for

reimbursement.​

7. AP & General Ledger (GL)

●​ All financial transactions in AP are recorded in the General Ledger for accounting
and reporting.​

●​ Example: At the end of the month, all supplier payments and invoices are
transferred to GL.​

8. AP & Supplier Portal

●​ Suppliers can submit invoices online, track payment status, and update banking
details.​

●​ Reduces manual invoice processing and increases transparency.​

●​ Example: A vendor uploads an invoice to the Supplier Portal, and it is automatically

recorded in AP.​

9. AP & Fusion Assets

●​ When a company purchases a long-term asset (e.g., machinery, vehicles,

computers), it must be tracked.​

●​ AP integrates with Fusion Assets to record the purchase and manage asset
depreciation.​
 ●​ Example: A company buys a new truck, and the cost is added to the Fixed Assets
system.​

​
​

Conclusion
AP is a central part of financial management in Oracle Fusion. By integrating with multiple

✅
modules, it ensures:​

✅
Accurate invoice processing​

✅
Efficient supplier payments​

✅
Proper tax calculation​

✅
Cash flow management​
Seamless accounting in GL

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​
4. Understanding Pay Groups in Oracle Fusion Payables

What is a Pay Group?

A Pay Group is a way to group suppliers based on payment processing needs. This
helps in making payments more organized and efficient.

Why Use a Pay Group?

●​ If a company has 100 suppliers and needs to process 100 invoices, handling
payments for all individually can be difficult.​

●​ Suppliers can be grouped based on categories (e.g., Hardware suppliers, Software

suppliers).​

●​ While making payments, you can select a specific pay group to process payments
for only those suppliers in the group.​

Real-Life Example

Let’s say a company has:

●​ 60 hardware suppliers​

●​ 40 software suppliers​

Instead of processing all invoices one by one, the company can:

1.​ Create a Hardware Pay Group for 60 hardware suppliers.​

2.​ Create a Software Pay Group for 40 software suppliers.​

When making payments:

●​ If they select the Software Pay Group, only invoices from software suppliers will
be processed.​

●​ If they select the Hardware Pay Group, only invoices from hardware suppliers will
be processed.​
This ensures faster and more structured payment processing.

Steps to Create a Pay Group in Oracle Fusion

Navigation Path

1.​ Navigator → Setup and Maintenance​

2.​ Setup → Financials → Payables → All Tasks​

3.​ Manage Payables Lookups​

4.​ Enter Lookup Type: A%Group% → Search​

5.​ Click on the Lookup Code for Pay Group​

6.​ Click on the + button to add a new Pay Group​

7.​ Enter Pay Group Details:​

○​ Code: P30_Hardware​

○​ Meaning: Hardware Suppliers Pay Group​

○​ Common Set: Select "Common Set"​

8.​ Save and Close​

Now, suppliers can be assigned to this Pay Group during their setup.

Benefits of Using Pay Groups

✅ Simplifies payment processing​

✅ Reduces manual selection of invoices​
✅ Improves efficiency and organization​
✅ Ensures payments are made to the right category of suppliers
​
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​
5. Understanding Payment Terms in Oracle Fusion Payables

What are Payment Terms?

Payment terms define the conditions for invoice payments, including:

●​ Due Date: Last date for payment.​

●​ Discount Date: Date before which early payments qualify for a discount.​

●​ Installments: Splitting invoice payments into multiple parts.​

There are two types of payment terms:

1.​ Normal Payment Terms​

2.​ Proxima Payment Terms​

1. Normal Payment Terms

Used for standard business payments where due dates and discounts are agreed upon
with the supplier.

Example of Normal Payment Terms

●​ Invoice Amount: ₹10,00,000​

●​ Installments: 2 Installments​

○​ First Installment: 60% (₹6,00,000) - Due in 30 days​

○​ Second Installment: 40% (₹4,00,000) - Due in 50 days​

Discounts Offered by Supplier

●​ 10% Discount if payment is made within 10 days​

●​ 5% Discount if payment is made within 20 days​

 Installmen Amount Due Date Discount (if paid early)
t

First ₹6,00,00 30 days from invoice 10% (within 10 days), 5% (within 20

0 date days)

Second ₹4,00,00 50 days from invoice No discount

0 date

Steps to Create Normal Payment Terms in Oracle Fusion

1.​ Navigator → Setup and Maintenance​

2.​ Setup → Financials → Payables → Manage Payment Terms​

3.​ Click on "Create New" (+ Button)​

4.​ Enter Payment Term Name (e.g., P30 2/10 Net 30)​

5.​ Define Installments:​

○​ 60% - 30 days​

○​ 40% - 50 days​

6.​ Define Discounts:​

○​ 10% Discount – 10 days​

○​ 5% Discount – 20 days​

7.​ Assign to Set Code (P30 Set)​

8.​ Save and Close​

✅ Done! Your normal payment term is created.

2. Proxima Payment Terms

Used for monthly billing cycles, where invoices are generated on a fixed date (e.g.,
electricity, mobile, internet bills).

Example of Proxima Payment Terms

●​ Billing Cycle Ends: 15th of every month​

●​ Invoice Sent: 23rd of every month​

●​ Due Date: 5th of the next month​

Billing Period Invoice Date Due Date

16th July - 15th August 23rd August 5th

September

16th August - 15th 23rd September 5th October

September

Steps to Create Proxima Payment Terms in Oracle Fusion

1.​ Navigator → Setup and Maintenance​

2.​ Setup → Financials → Payables → Manage Payment Terms​

3.​ Click on "Create New" (+ Button)​

4.​ Enter Name (e.g., P30 Proxima)​

5.​ Set Cutoff Date: 15th of every month​

6.​ Set Due Date: 5th of the next month​

7.​ Month Ahead: 0 (So next month’s 5th is selected)​

8.​ Assign to Set Code (P30 Set)​

9.​ Save and Close​

✅ Done! Your Proxima payment term is created.

3. Immediate Payment Terms
●​ Used when full payment is due immediately after invoice creation.​

●​ No installment or discount conditions apply.​

Steps to Assign a Reference Data Set to Immediate Payment Terms

1.​ Navigator → Setup and Maintenance​

2.​ Setup → Financials → Payables → Manage Payment Terms​

3.​ Search for "Immediate Terms"​

4.​ Click Edit → Assign Reference Data Set (P30 Set)​

5.​ Save and Close​

✅ Done! Immediate payment terms are assigned.

Summary of Payment Terms

Payment Term Type Usage Due Date Discount

Options

Normal Payment Standard business Fixed days after Yes (optional)

Terms payments invoice

Proxima Payment Monthly billing cycles Fixed day of next Rarely used
Terms month

Immediate Payment Instant payments On invoice date No discount

Terms

Would you like a step-by-step visual guide for any of these? 😊

5. Understanding Options in Oracle Fusion Payables

What are Options?

Options are rules and controlling features that organizations define to regulate financial
transactions.​
They ensure compliance and provide a structured approach to managing transactions.

📌 Example:​
Just like traffic rules ensure a safe journey, financial options enforce discipline in invoice
processing, payments, and accounting.

Types of Options in Payables

There are two types of options:

1.​ Common Options for Payables and Procurement​

2.​ General Payables Options​

1. Common Options for Payables and Procurement

These options are shared between Payables and Procurement (Purchasing).

●​ Used to control and standardize financial processing across these applications.​

●​ They define default accounts and other financial parameters.​

Steps to Configure Common Options for Payables and Procurement

1.​ Navigator → Setup and Maintenance​

2.​ Setup → Financials → Payables → Manage Common Options for Payables and
Procurement​

3.​ Select Business Unit (BU) → Click on Add​

4.​ Enter BU Name (e.g., P30 BU - Petrochemicals)​

5.​ Define Accounts and Parameters​

 6.​ Save and Close​

Key Fields in Common Options

📌 Default Accounts
●​ Liability Account: Used for invoices. When an invoice is created, this account
records the liability.​

○​ 📌 Example: Invoice of ₹1,00,000 → Liability recorded in this account

until payment is made.​

●​ Prepayment Account: Used for advance payments to suppliers.​

○​ 📌 Example: Prepaid ₹10,000 for a future purchase → Prepayment

account is used.​

📌 Foreign Currency Transactions

●​ Conversion Rate Variance Gain or Loss:​

○​ Used when exchange rate differences occur between purchase orders

and invoices.​

○​ 📌 Example:​
■​ Purchase Order Date: Aug 1 → $1,000 at ₹50 = ₹50,000​

■​ Invoice Date: Aug 11 → $1,000 at ₹60 = ₹60,000​

■​ Difference: ₹10,000 → Booked under Conversion Rate Variance​

●​ Realized Gain or Loss:​

○​ Used when exchange rate changes between invoice and payment dates.​

○​ 📌 Example:​
■​ Invoice Date: Aug 11 → $1,000 at ₹60 = ₹60,000​

■​ Payment Date: Aug 20 → $1,000 at ₹70 = ₹70,000​

■​ Difference: ₹10,000 → Booked under Realized Gain or Loss​

📌 Discount Taken
 ●​ Records supplier discounts received for early payments.​

●​ 📌 Example:​
○​ Invoice: ₹1,00,000​

○​ Discount: 10% if paid in 10 days​

○​ Recorded as Discount Taken Account​

📌 Miscellaneous Accounts
●​ Freight Account: Used for transportation and shipping charges.​

✅ Done! Common Options for Payables and Procurement are now configured.

2. General Payables Options

These options are specific to Payables only and control invoice processing, payments, and
supplier-related settings.

🔹 (This topic is covered separately in Payables Setup.)

Summary of Options in Payables

Option Type Used For Key Features

Common Options for Shared by Payables Default accounts, liability,

Payables and Procurement & Procurement prepayment, foreign currency
settings

General Payables Options Payables-only Invoice processing, payment

settings terms, withholding tax

Would you like me to generate screenshots or a step-by-step guide for setting this up? 😊
7.Understanding General Payables Options in Oracle
Fusion
What are General Payables Options?

General Payables Options are specific to the Payables module in Oracle Fusion.​
They control how invoices and payments are processed within the organization.

📌 Three Key Categories in General Payables Options:

1.​ Invoice Options 🧾​

2.​ Payables Options 💰​

3.​ Tax Reporting & Withholding Tax Options 🏦​

1️⃣ Invoice Options (Controls Invoice

Processing)
Invoice options define how invoices are created and processed in Oracle Payables.​
These settings impact how invoice currency, numbering, discounts, and priorities are
handled.

Navigation to Invoice Options

1️⃣ Navigator → Setup and Maintenance​

2️⃣ Setup → Financials → Payables → Manage Invoice Options​
3️⃣ Select Business Unit (BU) → Click on Add​
4️⃣ Enter BU Name (e.g., P30 BU - Petrochemicals)​
5️⃣ Define Invoice Options​
6️⃣ Save and Close

🚀 Key Fields in Invoice Options

📌 1. Sequential Invoice Numbering
✅ If enabled, invoice numbers will follow a sequential order.
📌 2. Allow Adjustments to Paid Invoices
✅ Normally, invoices cannot be modified after payment.​
✅ If enabled, some fields can be modified after payment within the business unit.

📌 3. Default Invoice Settings

●​ Invoice Currency: Default currency for invoices (e.g., INR).​

●​ Payment Currency: Default currency for payments (e.g., INR).​

●​ Pay Group: Grouping for supplier payments (e.g., "P30 Hardware").​

📌 4. Payment Priority (1-99)

📌
Determines which invoices get paid first based on risk and importance.​
Example:

●​ Supplier A (High Interest Rate, Penalty for Late Payment) → Priority 1 (High
Priority)​

●​ Supplier B (Low Risk, No Penalty) → Priority 99 (Low Priority)​

📌 5. Term Date Basis (For Due Date Calculation)

Determines how due dates are calculated for invoices.

Option Example Date Due Date (30 Days

Example)

Goods Received Date 1st Aug 31st Aug

Invoice Date 5th Aug 4th Sept

Invoice Received 10th Aug 9th Sept

Date
 System Date 15th Aug 14th Sept

✅ Most common option: Invoice Date

📌 6. Pay Date Basis (For Discount Calculation)

●​ Due Date → Standard payment terms.​

✅ 💰
●​ Discount Date → Prioritizes early payments for supplier discounts.​
Most businesses choose: Discount Date (to save money ).​

📌 7. Invoice Matching
●​ Enables matching invoices to purchase orders.​

●​ Two-way match: Invoice = PO​

●​ Three-way match: Invoice = PO + Goods Receipt​

📌 8. Discount Calculations
Oracle allows discounts based on different invoice components:

Component Amount

Item Line Amount ₹1,00,00

0

Tax Amount ₹10,000

Freight (Shipping) ₹20,000

Total Invoice Amount ₹1,30,00
0

✅ Exclude Tax from Discount Calculation

●​ If enabled, discount is not applied to tax.​

●​ Example: 10% discount applies only to ₹1,20,000 (Item + Freight).​

✅ Exclude Freight from Discount Calculation

●​ If enabled, discount is not applied to freight (₹20,000).​

●​ Example: 10% discount applies only to ₹1,00,000 (Item Line).​

✅ Always Take Discount (Even After Due Date)

●​ If enabled, system always applies discounts even after the due date.​

●​ Best Practice: Disable at system level, enable at specific supplier level.​

📌 9. Prepayment (Advance Payment Handling)

📌
●​ If enabled, system will show available prepayments during invoice entry.​
Example: If ₹50,000 was prepaid, Oracle will remind users while entering
invoices.​

📌 10. Approval, Interest, and Payment Requests

●​ Approval Workflow: Controls invoice approval process.​

●​ Interest Calculation: For late payments.​

●​ Payment Requests: For manual payment adjustments.​

✅ Summary of Invoice Options
Feature Purpose

Sequential Numbering Ensures invoices follow a unique, sequential order.

Allow Adjustments to Paid Allows limited modifications to paid invoices.

Invoices

Invoice Currency & Payment Defines default currencies for transactions.

Currency

Payment Priority (1-99) Determines which supplier gets paid first.

Term Date Basis Defines how due dates are calculated.

Pay Date Basis Defines whether payments are made based on due
date or discount date.

Invoice Matching Ensures invoices match with purchase orders &

receipts.

Discount Calculations Defines whether discounts apply to tax, freight, or total

invoice amount.

Always Take Discount Allows discounts even after due date.

Prepayment Handling Ensures prepaid amounts are considered during

invoice entry.
​
Here's a clear and structured explanation of the Payment Options in Oracle Fusion
Payables:

🏦 What are Payment Options in Oracle Fusion?

Payment options define the rules and controls for how payments are processed in Oracle
Fusion.​
They directly impact what users can or cannot do when creating payments.

✅ These settings are business unit-specific and used to ensure payment accuracy,
control, and compliance.

🔍 Navigation to Manage Payment Options

Navigator → Setup and Maintenance → Setup → Financials → Payables →
Manage Payment Options

⚙️ Key Payment Options Explained

1️⃣ Allow Payment Date Before System Date

●​ 🔒 System Date: Today’s date (the current date in the system).​

●​ ✅ If enabled: You can create backdated payments (payments dated in the past).​
●​ ❌ If disabled: You can only create payments with the current or future date.​
Use Case:​
If you're entering a payment made 2 days ago, enabling this allows that.

2️⃣ Allow Override of Supplier Site Bank Account

●​ ✅ If enabled: You can change the default bank account of the supplier during
payment creation.​

●​ ❌ If disabled: You must use the supplier’s default bank account from the system.​
Use Case:​
Let’s say the supplier gave a new bank account temporarily—you can override it only if this
is enabled.

3️⃣ Account for Payment (Journal Entry Creation Timing)

This controls when accounting entries (journal entries) are created for payments.​
You have 3 options:

Option Effect

✅ At Payment Issue Journal entries are created when you issue the payment
(e.g., print a check, initiate bank transfer).

✅ At Payment Clearing Journal entries are created only after reconciliation (e.g.,
bank confirms the payment).

✅ Both Payment Issue Entries are created twice—first when issuing payment, and
and Clearing again when reconciling.

✅ Recommended:
If you want better tracking and audit, enable both — this gives entries for payment and
reconciliation.

4️⃣ Conversion Rate Type

Defines the default exchange rate type to be used for foreign currency payments (e.g.,
P20, P30, etc.).

This impacts how the system calculates currency conversions between invoice
currency and payment currency.

✅ Summary Table
 Setting Purpose Recommended Use

Allow Payment Date Allow backdated payments ✅ Enable if payments

Before System Date often backdated

Allow Override of Supplier Modify supplier bank account ✅ Enable for flexibility
Site Bank Account in payment screen

Account for Payment at Create journal at payment ✅ If you want early

Issue issue accounting

Account for Payment at Create journal at ✅ If you only account after

Clearing reconciliation payment clears

Account at Both Entry at issue and clearing ✅ Recommended for full

tracking

Conversion Rate Type Default exchange rate type Based on BU policy

💬 Would you like a demo example with screenshots, or should we move on to the next
config—Withholding Tax Options?

Here’s a simple and clear explanation of the Open Payables Periods process in Oracle
Fusion Payables:

📅 What is an Open Payables Period?

In Oracle Fusion, to enter and process invoices and payments in Accounts Payables (AP),
the AP accounting period must be open.
Even if your General Ledger (GL) periods are open, you still need to open AP periods
separately.

🧭 Navigation to Open AP Periods

Navigator → Payables → Invoices → Tasks Pane (Right Side) → Manage
Accounting Periods

🪜 Step-by-Step Process
✅ Step 1: Access AP Periods
1.​ Go to Payables > Invoices​

2.​ On the right-side Tasks pane, click Manage Accounting Periods​

✅ Step 2: Search for Your Ledger

1.​ Use Query By Example (QBE)—click the search/filter icon (funnel-shaped)​

2.​ Enter your Ledger Name (e.g., P30 RAPID)​

3.​ Press Enter or click Search​

✅ Step 3: Open First Period (e.g., Jan-23)

1.​ Find the first period you want to open (e.g., Jan-23)​

2.​ Select it​

3.​ Click Actions → Open Period​

4.​ Confirm by clicking Yes​

✅ Step 4: Open Up to Current Period (e.g., June-23)
1.​ Go to Actions → Open Target Period​

2.​ Select June-23​

3.​ Click Open and confirm​

🔁 Repeat for each future month you want to open (e.g., July-23 can be marked
as “Future Enterable”).

🔁 Why Open AP Periods Separately?

Even though the GL Periods may be open, AP requires its own period to be open so that:

●​ You can create, approve, and account invoices​

●​ Payments can be processed and recorded​

🔄 Open GL Periods Too (Optional)

This wasn’t originally part of the step, but it’s good practice.

1.​ Navigate to General Ledger → Periods​

2.​ Open the corresponding periods (e.g., July-23)​

3.​ Set status to Open or Future Enterable​

✅ Summary
Ste Action
p
 1 Navigate to Payables > Invoices

2 Click Manage Accounting Periods

3 Search for your ledger

4 Open period (e.g., Jan-23)

5 Use Open Target Period to open up to current

month

6 (Optional) Open matching periods in General Ledger

📌 Note: Always ensure GL and AP periods are synchronized—open for the same
month—to avoid accounting errors or transaction blockages.

Would you like a quick visual flow or diagram for this process?

Great! Here’s a clear breakdown of what was covered in your notes on Suppliers in Oracle
Fusion:

🔹 What is a Supplier?
A supplier is a person or organization that provides goods or services to a company.

🔹 Supplier Record Structure (4 Levels)

1.​ Profile (Header Level)​

○​ Represents the main identity of the supplier (like head office).​

○​ Created once per supplier (only one profile).​

 2.​ Address (Still at Header Level)​

○​ A supplier can have multiple addresses.​

○​ Used for things like ordering, invoicing, and payments.​

3.​ Site (Business Unit Level)​

○​ Represents branches (in your terms).​

○​ Sites are linked to specific business units.​

○​ Only that business unit can use the site.​

4.​ Contacts​

○​ People associated with supplier communication.​

○​ Emails, phone numbers, etc.​

🔹 Roles Required
To create/manage suppliers, assign these roles to a user:

●​ Supplier Administrator​

●​ Supplier Manager​

🔹 Steps to Create a Supplier (Manually)

1.​ Create Employee​

○​ Use the employee creation screen in the setup navigator.​

○​ Assign them under a legal entity and business unit.​

2.​ Assign Roles to Employee​

○​ Use Security Console or Implementation Users to assign roles.​

3.​ Assign Employee to Business Unit​

 ○​ Needed to act as a Procurement Agent.​

4.​ Create Procurement Agent​

○​ Only procurement agents can create suppliers.​

○​ Give full access if needed (to create POs, invoices, etc.).​

5.​ Set Supplier Numbering (Optional)​

○​ Define starting number for suppliers (one-time setup).​

6.​ Create Supplier​

○​ Log in with the procurement agent.​

○​ Go to Procurement > Suppliers > Create Supplier.​

○​ Fill in basic details (name, type, relationship, etc.).​

🔹 Important Tabs During Supplier Creation

●​ Profile Tab​

○​ Supplier name, number, type, etc.​

●​ Payments Tab​

○​ Choose payment method: Check, Electronic, Wire, etc.​

○​ Define remittance advice (invoice details sent along with payment).​

●​ Address Tab​

○​ Add physical location (e.g., Sony Hyderabad).​

○​ Assign address purposes (Ordering, Remit-to, Invoicing).​

●​ Sites Tab​

○​ Assign business unit, address.​

○​ Specify Purchasing, Invoicing, and Payment options.​

 ●​ Invoice Tab​

○​ Set default invoice currency (e.g., INR).​

○​ Define max invoice amount (e.g., ₹50 lakhs).​

○​ Choose match level (2-way, 3-way, 4-way).​

🔹 Matching Levels Explained

●​ 2-Way Match: Invoice vs PO (Quantity & Price match).​

●​ 3-Way Match: Invoice vs PO vs Receipt (ensures goods were received).​

●​ 4-Way Match: Invoice vs PO vs Receipt vs Inspection (ensures items passed quality

check).​

Let me know if you want this in a short reference PDF or need help practicing these steps
inside Oracle Fusion!

Got it! Here's a clear explanation of the Default Business Unit Setup in Oracle Fusion,
based on your notes:

🔸 What is Default Business Unit?

When users open most Oracle Fusion screens, the Business Unit field is usually required.​
To save time and reduce errors, you can default this value, so the user doesn’t have to
select it manually every time.

🔸 Why Set a Default Business Unit?

●​ Avoid manually selecting BU on every screen.​

●​ Improve user efficiency.​

●​ Reduce mistakes when entering data.​

🔸 Steps to Assign Default Business Unit to a User
✅ This setup is done by a normal user (not necessarily a procurement agent).​
For example, User ID: P130

✅ Step-by-Step Guide
1.​ Login with the user (e.g., P130).​

2.​ Go to:​
Navigator → Setup and Maintenance​

3.​ Under Setup, click on the task:​

Manage Implementation Projects​

👉
4.​ Select the relevant project:​
e.g., Implementation Project 130​

5.​ Go to the Financials offering.​

6.​ Under Financials:​

○​ Click on:​
Define Common Application Configuration for Financials​

○​ Then:​
Define Common Reference Objects for Financials​

🔹
7.​ Open task:​
Manage Administrator Profile Values​

🔸 Configure the Profile Value

1.​ In Manage Administrator Profile Values:​

🔍
○​ Search for profile:​
"Business Unit"​
 ○​ You’ll see something like: DEFAULT_BU or Business Unit (depends on
version)​

2.​ In the Profile Values section:​

○​ Click the plus (+) button.​

○​ In User field: Enter P130​

○​ In Profile Value: Enter the Business Unit code (e.g., P3201)​

○​ Click Save and Close​

✅ Now, whenever user P130 logs in, screens will automatically pick up Business Unit
P3201 by default.​
No need to manually select it every time!

Let me know if you’d like a flow diagram or screenshot-style mock-up to visualize the
steps!

​
Awesome! You just walked through the full lifecycle of a Standard Invoice in Oracle
Fusion Payables — from invoice creation to accounting and transferring to the General
Ledger (GL). Let me explain and break this down in a clean and structured way so it's easy
to remember and revise later.

📦 What is an Invoice in Payables?

When you purchase goods or services from a supplier, they send you an invoice. This
invoice is recorded in Oracle Fusion under Payables.

🧱 Invoice Structure – 3 Levels

1.​ Header​

○​ Always ONE per invoice.​

○​ General info like:​

 ■​ Invoice Number​

■​ Date​

■​ Supplier Name​

■​ Business Unit, Invoice Type, Terms​

2.​ Lines​

○​ At least one line per invoice (no upper limit).​

○​ Each line = a separate item or service.​

■​ Ex: 1 TV → 1 line, 2 Laptops → 2 lines.​

3.​ Distributions​

○​ Each line must have at least one distribution.​

○​ Defines accounting info (Which expense account to book).​

○​ Example: ₹1,00,000 for TV → Distribution → Expense Account (like Rent,

Office Equip).​

💡 Line Types Supported (6 types)

1.​ Item​

2.​ Freight​

3.​ Miscellaneous​

4.​ Prepayment​

5.​ Withholding Tax​

6.​ Tax​

🧾 Types of Invoices (10 Types)

 1.​ Standard Invoice​

2.​ Debit Memo​

3.​ Credit Memo​

4.​ Prepayment​

5.​ Interest Invoice​

6.​ Withholding Tax​

7.​ Payment Request​

8.​ Standard Invoice Request​

9.​ Paid Memo Request​

10.​Retainage Invoice​

🔁 Ways to Create Invoices

✅ Manually (3 options)
1.​ Direct entry in the application.​

2.​ Using Integrated Imaging Service (OCR scanned docs).​

3.​ Spreadsheet upload.​

🔄 Automatically (5 ways)
1.​ Goods Return to Supplier (RMA)​

2.​ Expense Reports​

3.​ Customer Refunds​

4.​ Intercompany Transactions​

5.​ Validated Settlements​

👤 Self-Service (Supplier Portal)
●​ Supplier uploads invoice directly.​

●​ No email or courier required.​

●​ System processes and creates invoice.​

🔌 B2B Web Service

●​ Company-to-company interaction (Amazon to Jiomart example).​

●​ Fully automated web-based invoice integration.​

🛠️ Steps to Create Standard Invoice (Manual)

🔹 Step 1: Navigation
Navigator → Payables → Invoices → Tasks → Create Invoice

🔹 Step 2: Enter Invoice Header Info

●​ Business Unit (auto-defaulted if setup done)​

●​ Supplier (e.g., Sony)​

●​ Invoice Number (e.g., 1000)​

●​ Amount (e.g., ₹10,00,000)​

●​ Invoice Type: Standard​

●​ Payment Terms (fetched from supplier site → address → profile → header)​

🔹 Step 3: Add Line(s)

●​ Enter Line Amount (e.g., ₹10,00,000)​
 ●​ Select line type (Item)​

🔹 Step 4: Add Distribution(s)

●​ Click on Distributions tab​

●​ Assign Expense Account (e.g., Rent Account)​

●​ Ensure Line Amount = Distribution Amount​

🔹 Step 5: Manage Installments (if any)

●​ Click on: Invoice Actions → Manage Installments​

●​ System calculates installment amounts and due dates​

●​ Discounts also calculated based on terms​

🔹 Step 6: Validate the Invoice

●​ Invoice Actions → Validate​

●​ Status becomes: Validated​

🔹 Step 7: Post Accounting

●​ Invoice Actions → Post to Ledger​

●​ View Accounting​

○​ Debit: Expense Account (e.g., Rent ₹10L)​

○​ Credit: Liability Account (e.g., ₹10L)​

🧾 Step 8: Check Journal in GL
1.​ Navigation:​
Navigator → General Accounting → Journals → Task → Manage
Journals​

2.​ Enter:​

○​ Source = Payables​

○​ Period = Current (e.g., June 2023)​

3.​ You’ll see:​

○​ Journal Name: Purchase Invoices​

○​ Status: Posted​

○​ Source: Payables​

○​ Debit/Credit entries visible​

✅ Summary of Key Concepts

Concept Explanation

Invoice Header General details (one per invoice)

Invoice Lines Items/services (min 1, max many)

Distributions Accounting per line (min 1 per line)

Invoice Validation Checks data before posting

Post to Ledger Final accounting entry → GL

 Journal Entry Debit Expense, Credit Liability

Payment Terms Flow Supplier Site → Address → Profile → Header

Great! Let me explain everything you shared in a simplified and organized way so it's easier
to understand, especially if you're learning Oracle Fusion Payables and Payments.

🔹 Why Bank Setup is Needed?

After creating invoices in Accounts Payables (AP), the next step is making payments to
suppliers. To do that, we need:

●​ A Bank​

●​ A Bank Branch​

●​ A Bank Account​

●​ A Checkbook / Payment Document​

🔹 Steps to Set Up Bank and Make Payments

Step 1: Create Bank

●​ Go to: Navigator > Setup and Maintenance > Financials > Cash
Management > Banks​

●​ Do NOT click the + button directly.​

●​ Enter:​

○​ Country: India​

○​ Bank Name: e.g., ICICI Bank​

○​ Enter address and contact details​

 ○​ Save​

Step 2: Create Bank Branch

●​ Select the bank you created​

●​ Click Create Branch​

●​ Enter:​

○​ Branch name (e.g., HSA Bank)​

○​ IFSC code (optional)​

○​ EFT number (optional)​

○​ Address (optional)​

○​ Save and Close​

Step 3: Create Internal Bank Account

●​ Internal bank account = Your company’s account (for payments and collections)​

●​ Go to: Setup and Maintenance > Financials > Cash Management >
Manage Bank Accounts​

●​ Click on +​

●​ Enter:​

○​ Bank Name and Branch​

○​ Account Name: e.g., P30 Internal Account​

○​ Account Number: e.g., 1234567890​

○​ Currency: INR​

○​ Legal Entity: e.g., P30 Petrochemicals Ltd.​

 ○​ Usage: Select Payables and Receivables​

○​ Enable Multi-Currency if needed​

○​ Business Unit Access: Attach the BU like P30 Boo Petrochemicals​

○​ Cash and Clearing Accounts: Get defaulted (from rapid implementation)​

○​ Save​

Step 4: Create Payment Document (Checkbook)

●​ Still inside bank account screen​

●​ Go to: Payment Documents section​

●​ Click on + and enter:​

○​ Payment Document Name: e.g., P30 Check​

○​ Paper Stock Type: Number Stock​

○​ Check Format: Select a predefined check template (SBI, ICICI format)​

○​ Starting Number: e.g., 100000​

○​ Ending Number: e.g., 200000​

○​ Save and Close​

✅ Now you're ready to print and use checks to make payments from your bank.

🔹 Step 5: Create Supplier Bank Account

You need supplier bank account details to make online payments (NEFT/RTGS etc.).

●​ Login as a Procurement Agent​

●​ Go to: Navigator > Procurement > Suppliers > Manage Suppliers​

 ●​ Search and select: Sony 130 (example)​

●​ Click Edit​

Under Profile Tab:

●​ Go to Payments > Bank Accounts​

●​ Click Create:​

○​ Country: India​

○​ Account Number: (any dummy number)​

○​ Bank Name: e.g., 130 ICICI​

○​ Branch Name​

○​ Allow international payments: ✅​

○​ Account Name: e.g., Sony 130​

○​ Save​

Under Sites Tab:

●​ Select the site and click Edit​

●​ Go to Payments tab​

●​ Under Payment Attributes, click + to add the same bank account​

●​ Save and Close​

🔹 Types of Bank Accounts in Fusion:

1.​ Internal – Company-owned, used for payment and collection​

2.​ Supplier – Used to pay vendors​

3.​ Customer – Used to receive money from customers​

 4.​ AP/AR Netting – Used when both supplier and customer are the same entity​

💡 Summary
●​ You can't pay a supplier unless:​

○​ Internal bank account is set up​

○​ Supplier bank account is set up and linked to supplier site​

●​ After setup, you can use payment process requests (PPR) to make payments.​

Sure! Let me explain everything in simple English with real-time examples so it’s easy to
understand.

💡 What is a Payment Method?

A payment method is just the way or mode by which you make payments to your vendors
or suppliers.

✅ Real-time Examples:
●​ You buy groceries from a supermarket. You can pay by:​

○​ Cash​

○​ Credit Card​

○​ UPI/Online transfer​

○​ Cheque​

Similarly, in Oracle Fusion, a company pays suppliers using different payment methods like:

●​ EFT (Electronic Funds Transfer)​

●​ Wire Transfer​

●​ Cheque​
 ●​ Third-party payment providers​

🧠 Are EFT and Electronic same?

Yes. EFT is just one type of Electronic Payment. So they are basically the same category.

🛠️ How to Create a New Payment Method in Oracle

Fusion
Here’s how you do it step-by-step:

🔹 Step 1: Navigation
1.​ Go to Navigator​

2.​ Click on Setup and Maintenance​

3.​ Choose Setup: Financials​

4.​ Go to Payments → Payment Methods​

5.​ Click on the ‘+’ (Add) button to create a new method​

🔹 Step 2: Fill Details

Let’s say you want to create a new payment method called "Check_New" because “Check”
already exists.

●​ Enter:​

○​ Code: Check_New​

○​ Name: Check_New​
 🔹 Step 3: Usage Rules
Now you set where and how this payment method will be used.

👉 Automatically assign to suppliers?

●​ If Yes: System auto-assigns this payment method whenever you create a supplier.​

●​ If No: You can assign it manually later.​

👉 Are you using this method in Payables (i.e., supplier payments)?

●​ If Yes, check "Enable for Use in Payables"​

👉 Use for all Business Units?

●​ If Yes: Select "All Business Units"​

●​ If No: Select specific business units​

👉 Use for all Legal Entities?

●​ Default is "All", but you can select specific legal entities.​

👉 Can it be used for:

●​ Domestic (India)​

●​ Foreign (Outside India)​

●​ Both​
Default is Both​

🔹 Step 4: Receivables
Do you want to use this payment method for customer refunds?

●​ If No: Disable receivables section​

●​ If Yes: Enable and follow same steps (business units, legal entities, etc.)​
 🔹 Step 5: Save
●​ Click Save and Close​

●​ Click Done​

🎉 Done! You’ve now created a new payment method.

Let me know if you want a visual flow or simple checklist format for daily use.

Perfect! Let me explain the concept of Payment Process Profile (PPP) in very simple

😊
terms, like you're telling a story to a friend. I'll also add real-life examples so it becomes
super clear.

💡 What is a Payment Process Profile (PPP)?

Imagine you're the Accounts Payable person in a company. You want to pay your supplier
online via bank transfer.

Now ask yourself:

●​ Which bank should the payment go through? (HDFC? HSBC?)​

●​ What file format should be sent to the bank?​

●​ What should the file name look like?​

●​ How should we group the invoices together for payment?​

💡 All of these questions are answered by Payment Process Profile in Oracle Fusion.

✅ Real-time Analogy:
Think of PPP like your delivery instruction form to Swiggy/Zomato:

●​ "Deliver using bike (HDFC Bank)"​

●​ "Send me food in eco-friendly box (File Format)"​

●​ "Label the order with my name & address (File naming convention)"​
 ●​ "Group all items in one bag (Invoice grouping)"​

Just like this, PPP controls how Oracle sends payment files to the bank.

🔧 What Does Payment Process Profile Do?

1.​ Bank System​

○​ Which bank are you using to make payments?​

Example: HDFC, ICICI, HSBC etc.​

2.​ File Format​

○​ What kind of file should be generated and sent to the bank?​

Example: Standard Check Format, XML file etc.​

3.​ File Name Convention​

○​ What should be the name of the file that is sent?​

Example: HDFC_Payment_01042025.txt​

4.​ Invoice Grouping​

○​ How should invoices be grouped together in a single payment?​

Example: Group by due date, supplier, or payment terms.​

🔄 Steps to Create Payment Process Profile

Step 1: Navigation

1.​ Go to Navigator​

2.​ Click on Setup and Maintenance​

3.​ Choose Setup: Financials​

4.​ Go to Payments → Payment Process Profiles​

 Step 2: Create New Profile

Click on the ‘+’ (Add) button to create a new profile.

Fill the following fields:

●​ Name: PPP_HDFC_Online​

●​ Code: PPP_HDFC​

●​ Payment File Format: Choose any file format (for example: Standard Check
Format)​

●​ Processing Type:​

○​ Electronic (for online transfer)​

○​ Printed (for cheques)​

→ Choose Electronic​

●​ Transmit To: Choose File (since we’re generating and sending file to bank)​

Step 3: Set Usage Rules

●​ Business Unit: All or Specific​

●​ Currency: All or Specific​

●​ Payment System: Select the bank system like HDFC_Global, HSBC_UK, etc.​
(Dummy data, so might not work during practice)​

●​ Invoice Grouping Rule: Choose how to group invoices – by due date, supplier,
etc.​

Step 4: File Naming and Limits

You can also:

●​ Define how the payment file name should be generated​

 ●​ Put limits like:​

○​ Max number of payments per file​

○​ Max payment amount​

Step 5: Save

●​ Click Save and Close​

●​ Then Done​

🧾 Summary (Simple English)

Concept What it Means

Payment System The bank you’re sending payments

Name through

File Format What the payment file looks like (XML,

txt, etc.)

File Naming What the file name will be when sent

Invoice Grouping How to combine invoices into one

payment

Business/Curren Which BUs or currencies can use this

cy Rules profile

Let me know if you’d like a diagram or a short cheat-sheet you can use for quick revision!
Great! Let’s break this entire payment process into simple steps and explain it with easy
language and real-life examples so it’s very clear to you.

💡 What are Payment Types in Oracle Fusion?

There are 4 main types of payments in Oracle Payables:

Payment Type Meaning

Quick Payment Pay one invoice manually in one go using cheque

or online method

Manual Payment Record a payment already made outside the

system (like cash/cheque)

Refund Refund back to the supplier

Payment Process Automated batch payment for multiple invoices at

Request (PPR) once

Now let's focus on the first type: Quick Payment

✅ Real-time Example of Quick Payment

Let’s say you are working in a company like Sony India, and you need to pay ₹6,00,000 to a
supplier for an invoice.

You want to pay it manually using a cheque. This is called a Quick Payment.

🔄 Step-by-Step: How to Make a Quick Payment in

Oracle Fusion
 🟩 Step 1: Navigation
1.​ Go to Navigator​

2.​ Click on Payables​

3.​ Go to Payments → Create Payment​

🟩 Step 2: Fill Payment Details

You’ll see a screen asking for payment info. Fill in the following:

●​ Business Unit: Example – INBU1​

●​ Supplier: Sunni 130​

●​ Payment Type: Select Quick​

●​ Payment Date: Today’s date​

●​ Description: Optional note (Ex: “Payment for invoice #INV001”)​

●​ Bank Account: From where you are paying (Ex: ICICI Internal)​

●​ Currency: INR​

●​ Payment Method: Cheque​

●​ Payment Process Profile: Select the PGP you created earlier​

●​ Payment Document: Select from the list (ex: Check Doc E30)​

○​ Check number starts from 1003 (you set it earlier)​

🟩 Step 3: Select Invoices to Pay

●​ Go to Invoices to Pay section​
 ●​ Click Select and Add​

●​ Choose the invoice(s) you want to pay. For example:​

○​ Invoice Amount: ₹6,00,000​

○​ You had defined 10% discount if paid within 10 days​

●​ Oracle auto-calculates:​

○​ Discount: ₹60,000​

○​ Payment Amount: ₹5,40,000​

✅ This is called "Terms Discount" – Oracle calculates it based on payment terms.

🟩 Step 4: Save Payment

●​ Click Save and Close​

●​ Oracle will create the payment record.​

✅ A cheque is now ready to be issued or file is ready to send to the bank.

🟩 Step 5: Post to Ledger (Accounting)

Now you need to account the payment.

1.​ Go back to Tasks → Manage Payments​

2.​ Search by Supplier Name: Sunni 130​

3.​ Search by Payment Number: 0030​

4.​ Open the payment​

🧾 View the Accounting Entries

Click Actions → Post to Ledger, then View Accounting
You’ll see this:

Accou Account A
nt m
Type o
u
nt

Debit Liability Account ₹6

,0
0,
00
0

Credit Cash Clearing ₹5

Account ,4
0,
00
0

Credit Discount Received ₹6

Account 0,
00
0

🔁 This shows:
●​ You are clearing the supplier’s liability.​

●​ You're paying from your bank.​

●​ You're gaining ₹60,000 as discount.​

Click Done

✅ Done! Payment is now recorded and accounted in the books.

🎯 Summary
 Step What Happens

Quick One-time manual payment via cheque or bank

Payment transfer

Fill Payment Supplier, bank account, method, etc.

Details

Select Choose the invoice to pay (Oracle auto

Invoice discounts)

Save Payment is created

Payment

Post to Payment is accounted in books

Ledger

Let me know if you want this as a PDF cheat-sheet or if you want to practice with Manual
Payment or PPR next!

Awesome! Let’s explain the Debit Memo in simple language with a real-life example and

😊
break down all the steps you shared in a very clear way. This will help you remember it
easily.

💡 What is a Debit Memo?

A debit memo is like telling the supplier:

"Hey, we returned your goods or you owe us money for something. Please
reduce your balance."

📌 Key Point:​
A debit memo is a negative invoice. It reduces the amount you owe to the supplier.
 ✅ Real-Life Example
Let’s say:

●​ You bought goods from Sony and they sent you an invoice of ₹10,00,000​

●​ You already made a partial payment of ₹6,00,000​

●​ So the remaining balance is ₹4,00,000​

Now imagine you returned goods worth ₹1,00,000 back to Sony.

🧾 You want to reduce the supplier balance from ₹4,00,000 to ₹3,00,000.

✅ For that, you create a Debit Memo of ₹1,00,000 (negative invoice).

🔄 Who Creates the Debit Memo?

The buyer (your organization) creates a debit memo when:

●​ Goods are returned​

●​ Supplier charged extra​

●​ You want to reduce supplier balance for any reason​

🔧 Steps to Create a Debit Memo in Oracle Fusion

🟩 Step 1: Navigation
1.​ Go to Navigator​

2.​ Select Payables​

3.​ Click on Invoices​

4.​ Click on Create Invoice​

 🟩 Step 2: Fill Invoice Header
Field Value

Supplier Sony 130

Invoice DM-002
Number

Invoice -1,00,000
Amount (Negative)

Invoice Debit Memo

Type

Payment Immediate
Terms (Change this)

📌 Usually, debit memos should be paid immediately or adjusted quickly.

🟩 Step 3: Add Line Item

1.​ Go to the Lines section​

2.​ Enter the line amount as -1,00,000​

3.​ Enter the account combination (Expense account or Item return account)​

○​ You can also go to Distributions and enter it​

🟩 Step 4: Validate the Invoice

 ●​ Click Save​

●​ Oracle will automatically validate it​

●​ Status will change to ✅ Validated​

🟩 Step 5: Post to Ledger (Accounting)

1.​ Go to Invoice Actions​

2.​ Click Post to Ledger​

3.​ Click View Accounting​

You will see these entries:

Accou Account A
nt m
Type o
u
nt

Debit Liability ₹1
Account ,0
0,
00
0

Credit Expense/Item ₹1
Account ,0
0,
00
0

📌 This is the reverse entry of a normal invoice.

🟩 Step 6: Final Step

 ●​ Click Done​

●​ Then Save and Close​

✅ Debit memo is now created and posted to accounts.

🎯 Summary (Easy Chart)

Concept Description

What is Negative invoice created by buyer to reduce supplier

it? balance

When to Goods returned, excess billing, or supplier owes

use? money

Who Your organization

creates
it?

Impact Reduces accounts payable

Posting Debit Liability, Credit Expense

Let me know if you'd like a side-by-side comparison of Standard Invoice vs Debit Memo
or a visual flowchart to help memorize this easily!

Let’s break down the concept of a Credit Memo in simple language with a real-life example,
and then explain the step-by-step process to create one in Oracle Fusion.

💡 What is a Credit Memo?

A Credit Memo is essentially a negative invoice that reduces the amount owed to a
supplier. It works much like a Debit Memo in that it lowers the supplier’s balance, but the key
difference lies in who initiates it:

●​ Credit Memo: Created and sent by the supplier to the organization when the
supplier owes money back.​

●​ Debit Memo: Created by the organization when it determines that the supplier
should reduce the amount payable (for example, because of returned goods).​

✅ Real-Life Example
Imagine you have an invoice for ₹10,00,000 from a supplier (let’s call them Sony 130).
Here’s how it could work:

1.​ Initial Transaction:​

○​ Invoice: ₹10,00,000​

○​ You make a payment of ₹6,00,000.​

○​ The remaining balance is ₹4,00,000.​

2.​ After Goods Return or Adjustment:​

○​ Let’s say the supplier finds that they owe you an additional credit of
₹75,000—maybe due to a pricing error or a return adjustment.​

○​ When the supplier creates a Credit Memo for ₹75,000, your new balance
becomes:​
​
₹4,00,000 – ₹75,000 = ₹3,25,000​

This credit memo tells your organization that the supplier is reducing the amount they charge
you.

🔧 Step-by-Step Process to Create a Credit Memo

in Oracle Fusion
Even though a credit memo is meant to be created by the supplier and sent to the
organization, you can still simulate or record it in Oracle Fusion. Here’s how you would do it:
 1. Navigation

●​ Go to:​
Navigator → Payables → Invoices → Task → Invoices → Create Invoice​

2. Enter Invoice Header Details

●​ Supplier: Enter the supplier (e.g., Sony 130)​

●​ Invoice Number: Use a unique identifier (for example, 1003)​

●​ Invoice Amount: Enter a negative amount to represent the credit (e.g., -75,000)​

●​ Invoice Type: Select Credit Memo (as it is a negative invoice)​

●​ Payment Terms: Change to Immediate since credit memos are usually settled
immediately​

3. Enter the Invoice Line Details

●​ Go to the Lines section.​

●​ Enter the line amount as -75,000.​

●​ Provide the relevant account distribution details (the account code where you want
this credit to apply). You can either enter it directly or use the distributions setup.​

4. Save and Validate

●​ Save the invoice.​

●​ The invoice status should initially show as Not Validated.​

●​ Go to Invoice Actions and select Validate.​

Once validated, the invoice status updates to Validated.​

5. Post to Ledger

●​ From the invoice actions menu, click Post to Ledger.​

●​ Next, select View Accounting to see the journal entries generated.​

 6. Review the Accounting Entries

In the accounting view, you should see:

●​ Debit: The liability account is debited by ₹75,000 (reducing your payable liability).​

●​ Credit: An expense or return-related account is credited by ₹75,000 (reflecting the

credit received).​

7. Finalizing the Credit Memo

●​ Click Done and then Save and Close to finish the process.​

🎯 Summary Chart
Asp Debit Memo (Organization Credit Memo (Supplier
ect Created) Created)

Pur To reduce the payable amount To reduce the payable

pos when the buyer finds that they amount when the supplier
e should recover funds from the determines they owe
supplier. money back to the buyer.

Inv Negative amount invoice Negative amount invoice

oic created internally typically sent from the
e supplier
Ent
ry

Effe Supplier balance decreases Supplier balance

ct decreases
on
Bal
anc
e
 Exa ₹1,00,000 (Debit Memo) ₹75,000 (Credit Memo)
mpl
e
Am
oun
t

Pay Often set as Immediate for Also set as Immediate for

me quick reconciliation prompt resolution
nt
Ter
ms

Both types of memos serve a similar accounting purpose—they both reduce what you owe
to the supplier—but the key difference is who originates the memo.

This explanation should help clarify the concept of a Credit Memo, its purpose, and how you
would record one in Oracle Fusion. Let me know if you need any further details or additional
examples!

💡
Great! Let’s simplify and explain the Prepayment concept and process in Oracle Fusion
Payables step-by-step — with clear examples and practical understanding.

💰 What is Prepayment?
A Prepayment is an advance payment made by an organization to a supplier, before
receiving goods or services.

🔄 Later, this amount is adjusted (applied) against:

●​ Future invoices (for goods/services received)​

🧾 Types of Prepayments
 Typ Meaning Can be Example
e adjusted
to
invoices
?

Per Deposit or security amount. ❌ No ₹1 Cr

ma Not meant for adjusting security
ne against purchases. deposit for a
nt dealership

Te Normal advance payment ✅ Yes ₹50 lakhs

mp for goods/services. advance for
ora upcoming
ry order

🔁 Can You Convert Prepayments?

●​ ✅ Permanent ➝ Temporary: Yes, allowed.​
●​ ❌ Temporary ➝ Permanent: Not typical or allowed.​

🔧 Prepayment Life Cycle – 5 Key Statuses

Status Description

Never You just created the prepayment invoice.

Validated
 Unpaid Invoice is validated, but payment not yet done.

Permanent Payment is done, and invoice is still marked as

Prepayment permanent.

Available You enabled prepayment application (i.e.,

converted it to temporary).

Fully Applied You used the prepayment to adjust a standard

invoice.

✅ Step-by-Step Process
🔹 Step 1: Create a Permanent Prepayment
1.​ Navigation:​
Navigator → Payables → Invoices → Task → Create Invoice​

2.​ Supplier: e.g. Sony 130​

3.​ Invoice Number: 1004​

4.​ Amount: ₹50,00,000​

5.​ Type: Prepayment​

6.​ Payment Terms: Immediate​

7.​ Disable “Allow prepayment application” in Show More → General Tab​

→ This marks it as Permanent Prepayment​

8.​ Save​

9.​ Validate → Invoice status becomes Unpaid​

10.​Pay In Full → Select Bank & Payment Doc​

11.​After payment, status becomes Permanent Prepayment​

12.​Post to Ledger → View Journal:​

●​ Debit: Prepaid Expense Account​

●​ Credit: Liability​

🔹 Step 2: Convert to Temporary Prepayment

1.​ Open the same invoice​

2.​ Go to Show More → General Tab​

3.​ Enable “Allow prepayment application”​

4.​ Save → Status becomes Available​

○​ Now this prepayment can be adjusted​

🔹 Step 3: Apply Prepayment to a Standard Invoice

1.​ Create New Invoice for the same supplier​
Example:​

○​ Invoice No: 1005​

○​ Amount: ₹50,00,000​

○​ Type: Standard​

○​ Validate & Post to Ledger​

2.​ Apply Prepayment​

○​ Actions → Apply Prepayment​

○​ Select the available prepayment (e.g. 1004)​

○​ Apply full or partial amount​

3.​ Revalidate invoice → Status: Validated​

4.​ Post to Ledger → Check Journal:​

○​ First Entry (Standard Invoice):​

■​ Debit: Item/Expense Account​

■​ Credit: Liability​

○​ Second Entry (Prepayment Applied):​

■​ Debit: Liability​

■​ Credit: Prepaid Expense​

🔍 Step 4: Check Prepayment Status

1.​ Navigation:​
Navigator → Payables → Invoices → Manage Invoices​

2.​ Search Invoice: Prepayment Invoice No 1004​

3.​ Status will now show: Fully Applied​

✅ Summary – Journal Entries Flow

Transaction Debit Credit

Prepayment Prepaid Liability

Invoice Expense

Standard Expense/Item Liability

Invoice Account
 Prepayment Liability Prepaid
Application Expense

🧠 Key Points to Remember

●​ Prepayment is advance money paid to the supplier.​

●​ Permanent = Cannot be adjusted (like deposit)​

●​ Temporary = Can be adjusted​

●​ You can convert permanent to temporary​

●​ There are 5 statuses in the life of a prepayment​

Would you like a visual diagram for this process or a cheatsheet summary PDF?

Here’s a clear and concise explanation of Interest Invoices in Oracle Fusion Payables,
based on the session you followed:

🔸 What is an Interest Invoice?

An Interest Invoice is an automatic penalty invoice generated by Oracle Payables when a
payment to a supplier is made after the due date. It represents the interest/penalty
charged by the supplier for late payments.

🔸 Real-Life Example
Imagine:

●​ You create an invoice for ₹10,00,000 with a due date of August 1st.​

●​ But you make the payment on August 14th, which is 13 days late.​

●​ The supplier has set a penalty/interest rate of 10% per annum.​

 ●​ So the system will automatically calculate and create an interest invoice, for
example ₹20,000, as a penalty for the 13 days delay.​

Now, instead of paying ₹10,00,000, the system will process a total payment of ₹10,20,000
— ₹10L original invoice + ₹20K interest.

🔸 Key Setups Required for Interest Invoice

✅ Step 1: Enable Interest Invoice Option
●​ Navigation: Setup and Maintenance → Financials → Payables → Manage Invoice
Options​

●​ Enable: Create Interest Invoices​

●​ Set:​

○​ Minimum Interest Amount (e.g., ₹100) – system will only create if interest is
above this.​

○​ Interest Expense Account – account where the interest expense will be

posted.​

✅ Step 2: Define Interest Rates

●​ Navigation: Payables → Manage Interest Rates​

●​ Define interest rate (%) for a date range.​

●​ Example: From Jan 1 to Dec 31 → 10% annual interest.​

✅ Step 3: Enable Interest Invoice at Supplier Level

●​ Only a Procurement Agent can modify supplier records.​

●​ Navigation: Procurement → Suppliers → Search for Supplier → Edit → Sites → Edit

Site → Terms tab​
 ●​ Enable: Create Interest Invoices = Yes​

🔸 How It Works – Functional Flow

🔹 Step 1: Enter Invoice with Old Date (Overdue)
●​ Enter an invoice with a past date, e.g., May 15.​

●​ Payment term = Immediate → so due date = May 15.​

●​ Amount = ₹10,00,000.​

🔹 Step 2: Validate and Post Invoice

●​ Validate → Post to Ledger → View Accounting​

●​ You’ll see:​
Dr. Item Expense​
Cr. Liability​

🔹 Step 3: Make Payment (Today)

●​ When making the payment, the system checks:​

○​ Due date vs actual payment date​

○​ Configured interest rate and days of delay​

●​ System auto-generates Interest Invoice during this process.​

Example:

●​ Delay: 19 days​

●​ Interest @ 10% → ₹5,277​

●​ Total Payment = ₹10,05,277​

 🔹 Step 4: System-Generated Interest Invoice
●​ A new invoice like 1006-INT1 is automatically created.​

●​ This invoice can be viewed under Manage Invoices.​

●​ Description: "Interest 19 days @ 10%"​

🔸 Accounting Entries
For Interest Invoice:

●​ Dr. Interest Expense Account​

●​ Cr. Liability (Supplier)​

●​ On payment:​

○​ Dr. Liability​

○​ Cr. Cash Clearing / Bank​

🔸 Summary of Steps
Activity

Enable Interest Invoice Option

Define Interest Rates

Enable Interest Invoice at Supplier Site

 Enter overdue invoice

Make payment (system auto-generates interest

invoice)

Review interest invoice and accounting

If you want, I can draw a flowchart or summary table for this as well. Let me know!

Here’s a clear and easy-to-understand explanation of Distribution Sets in Oracle Fusion

Payables, based on your session:

🔸 What is a Distribution Set?

In Oracle Payables, a Distribution Set is used to automatically default accounting
information (i.e., charge accounts) while creating an invoice.

Instead of manually entering accounts on each invoice line, you can use a pre-defined
distribution set that applies the accounting automatically.

🔸 Why Use Distribution Sets?

👉 Saves time: No need to manually enter accounting distributions.​
👉 Reduces errors: Ensures consistent accounting.​
👉 Useful for repeat expenses: Like rent, subscriptions, utilities, etc.

🔸 Types of Distribution Sets

There are two types:

Type Use Case Key Feature

 ✅ With When you know the exact % % must total 100%
Percentage split between accounts

✅ Without When % split isn't known in Enter % while

Percentage advance creating the
invoice

🔸 Example – With Percentage

Imagine an invoice of ₹1,00,000 needs to be distributed:

●​ 60% to Cost Center A​

●​ 40% to Cost Center B​

You define a Distribution Set like:

E30_WITH_PERCENTAGE

- Line 1: 60% → Account A

- Line 2: 40% → Account B

When you use this Distribution Set on an invoice, the system will automatically allocate:

●​ ₹60,000 to Account A​

●​ ₹40,000 to Account B​

No manual entry needed!

🔸 Example – Without Percentage

If you don’t know the % distribution at setup time, use without percentage.

Later, when creating the invoice, you can enter the exact amounts or percentages
manually, but the account combinations will still default from the set.
So, you define:

E30_WITHOUT_PERCENTAGE

- Line 1: Account A (Percentage = 0)

- Line 2: Account B (Percentage = 0)

At invoice time, you might enter:

●​ ₹70,000 to Account A​

●​ ₹30,000 to Account B​

🔸 How to Create Distribution Set – Steps

✅ Step 1: Navigation
Navigator → Setup and Maintenance → Financials → Payables → All Tasks →
Manage Distribution Sets

✅ Step 2: Create "With Percentage" Distribution Set

●​ Business Unit: E30​

●​ Name: E30_WITH_PERCENTAGE​

●​ Add Lines:​

○​ Line 1: 60% → Account A​

○​ Line 2: 40% → Account B​

●​ Save and Close​

✅ Step 3: Create "Without Percentage" Distribution Set

●​ Name: E30_WITHOUT_PERCENTAGE​
 ●​ Add Lines:​

○​ Line 1: 0% → Account A​

○​ Line 2: 0% → Account B​

●​ Save and Close​

🔸 Summary
Feature With Without
Percenta Percentage
ge

Known % in advance ✅ Yes ❌ No

Manual entry of % during invoice ❌ Not ✅ Required
creation needed

Use Case Fixed Variable or

splits unknown splits

Let me know if you want a screenshot-style flow, chart, or test scenario using distribution
sets in invoices. I can also help show how it works during invoice creation.

Here’s a simple and clear explanation of how Invoice Creation through Spreadsheet
works in Oracle Fusion Payables:

🔸 What is Spreadsheet Invoicing?

Oracle Fusion allows you to create multiple invoices quickly using a spreadsheet (Excel)
instead of entering each invoice one by one in the UI. This is faster and useful for bulk data
entry.
 🔸 Step-by-Step Process
✅ Step 1: Open the Spreadsheet Template
Navigation:​
Navigator → Payables → Invoices → Tasks → Create Invoices from
Spreadsheet

●​ Click on "Create Invoices from Spreadsheet"​

●​ A pre-built Excel template will be downloaded​

●​ Open the spreadsheet → Click Enable Editing​

●​ Enter your username/password (one-time sign-in)​

✅ Step 2: Unprotect the Sheet

●​ Go to the Data Review tab​

●​ Click Unprotect Sheet​

●​ This allows you to enter data freely in the sheet​

✅ Step 3: Enter Invoice Data

Here’s what to fill in (for each invoice row):

Column Example Description

Business Unit E30 Required

Invoice Number 5001, 5002, Unique for each invoice

etc.
 Currency INR Or USD, etc.

Invoice Amount 1000000 Total invoice value

Invoice Date 03-JUN-202 Or your date

3

Supplier Name or Sony 130 / One of them is enough

Number 2130

Supplier Site Sony Mandatory

Hyderabad

Invoice Type Standard Or Credit/Debit Memo

Line Number 1 Always 1 for single-line

invoices

Line Amount 1000000 Same as invoice amount

for 1 line

Distribution Enter e.g., 01-220-XYZ

Combination Account
Code

✅ You can create multiple invoices (e.g., 6) by entering 6 rows.

✅ Step 4: Submit the Invoices

●​ Go to the Create Invoices tab in Excel toolbar​

●​ Click Save and Submit Invoice Import​

 ●​ Enter:​

○​ Business Unit = E30​

●​ Click Submit​

✅ You’ll see message like “Row Inserted Successfully”.

📌 Note: Close the spreadsheet without saving.

✅ Step 5: Check Invoices in Oracle UI

Navigation:​
Navigator → Payables → Invoices → Tasks → Manage Invoices

●​ Enter Business Unit = E30​

●​ Invoice Number: 5001 (or similar)​

●​ Click Search​

You’ll see all 6 invoices created:

●​ Status = Not Validated (initial state)​

●​ Invoice Amount = ₹10,00,000 (or as entered)​

✅ Step 6: Validate the Invoices

●​ Select all invoices (use top checkbox)​

●​ Click Actions → Validate​

⚠️ Some invoices may go on Hold or show Error if:

●​ Invoice numbers are duplicates​

●​ Amounts and details are identical​

●​ Supplier info is incorrect​

📌 In your case, all 6 invoices had the same values, so the system treated them as
duplicates. That’s why only one invoice validated, others were flagged.

🔸 Pro Tip: Avoid Duplicates

If creating multiple invoices:

●​ Use unique invoice numbers​

●​ Change invoice amounts slightly (e.g., 10L, 20L, 30L, etc.)​

This will avoid the “duplicate invoice” error during validation.

🔸 Summary
Action

Download & open

spreadsheet

Unprotect and enter invoice

data

Use correct supplier and

accounts

Submit invoices from Excel

Check and validate invoices

in Oracle
 Fix any holds (like duplicate
invoice)

Let me know if you’d like a sample filled Excel format, or help on how to fix invoice
holds, or how to create credit/debit memos through spreadsheets.

Here’s a clear explanation of Recurring Invoices in Oracle Fusion Payables, broken

down in simple steps:

🔁 What is a Recurring Invoice?

A Recurring Invoice is used when you have fixed expenses that repeat regularly
(monthly, weekly, quarterly, etc.).

📌 Examples:
●​ Rent​

●​ Internet bills​

●​ Salaries​

●​ Service fees​

Rather than entering the same invoice every time, you create a recurring template, and
Oracle will generate all the invoices for you.

🔄 Key Concepts
🔹 Recurring Invoice Template:
A setup that defines:

●​ How many invoices to generate​

●​ How frequently (monthly/quarterly/etc.)​

 ●​ Supplier, amount, and account information​

🔹 Recurring Calendar:
A calendar used to define periods — e.g., 12 months, 4 quarters, 52 weeks — based on
which the invoices will be generated.

🧭 Navigation and Steps

✅ Step 1: Create Recurring Calendar
Navigation:​
Navigator → Setup and Maintenance → Setup: Financials → Payables →
All Tasks → Manage Payables Calendars

●​ Click + (Add New)​

●​ Name: P30_RECURRING​

●​ Calendar Type: General Purpose​

●​ Periods: Choose frequency​

○​ Monthly = 12 invoices​

○​ Quarterly = 4 invoices​

○​ Weekly = 52 invoices​

●​ Choose Start Date: 01-JAN-2023​

●​ End Date: 31-DEC-2023​

●​ Click Generate Periods → You’ll see Q1, Q2, Q3, Q4​

●​ Click Save and Close​

✅ Step 2: Create Distribution Set

You already created one (with percentage-based allocation).​
If needed:

Navigation:​
Navigator → Setup and Maintenance → Financials → Payables → All
Tasks → Manage Distribution Sets

●​ Name: E30_WITH_PERCENTAGE​

●​ Add two distribution lines:​

○​ 60% to Account A​

○​ 40% to Account B​

●​ Save and Close​

✅ Step 3: Create Recurring Invoice Template (Excel)

Navigation:​
Navigator → Payables → Invoices → Tasks → Create Recurring Invoices

●​ Click to download the Recurring Invoice Template (spreadsheet)​

●​ Open Excel → Enable Editing​

●​ Enter your Username & Password​

●​ Enter the following in the sheet:​

Field Example

Business E30
Unit

Invoice REC_001
Number
 Supplier 7130 (Double-click and select)

Supplier Sony Hyderabad

Site

Currency INR

Invoice ₹5,00,000
Amount

Recurring P30_RECURRING (Double-click

Calendar and pick)

Periods Q1, Q2, Q3, Q4

Distribution E30_WITH_PERCENTAGE
Set

✅ This means: One invoice will be created for each quarter using same supplier, amount,
and distribution.

●​ Go to the toolbar → Click Generate​

●​ System will create the invoices​

●​ Message: Row Inserted Successfully​

✅ Step 4: Check Result and Validate Invoices

Navigation:​
Navigator → Payables → Invoices → Tasks → Manage Invoices

●​ Business Unit = E30​

 ●​ Invoice Number = REC_001​

●​ Click Search​

You’ll see 4 invoices created, one per quarter.

●​ Select invoices → Actions → Validate​

Status will change to: ✅ Validated

📌 Summary
Description

Create Recurring Calendar

(monthly/quarterly/etc.)

Create Distribution Set (with % if needed)

Use Spreadsheet Template to define

recurring invoice

Submit and system auto-generates invoices

Review and validate the invoices

Let me know if you’d like:

●​ A sample spreadsheet for recurring invoices​

 ●​ Help with editing an existing recurring invoice​

●​ Guidance on how to stop or adjust recurring invoices mid-year​

Here's a clear explanation of the Invoice Grouping (Invoice Batch) feature in Oracle
Fusion Payables — step by step and easy to understand.

🧾 What is Invoice Grouping / Invoice Batch?

Invoice Grouping is like putting multiple related invoices together under one Group Name
or Batch.

📌 Why use Invoice Grouping?

To logically organize invoices based on:

●​ Type of expense (e.g., Rent, Utilities, Miscellaneous)​

●​ Department​

●​ Supplier​

●​ Any custom business rule​

This helps in simplified processing, reporting, and bulk payments.

⚙️ Before You Use It

By default, this feature is disabled. You need to enable it first in the system.

✅ Steps to Enable and Use Invoice Grouping

🟢 Step 1: Enable Invoice Grouping
Navigation:​
Navigator → Setup and Maintenance → Setup: Financials → Payables →
All Tasks → Manage Invoice Options
 ●​ Find the option: ✅ Require Invoice Grouping​
●​ Check/Enable it​

●​ Click Save and Close​

🔔 After enabling, Oracle requires you to enter a group name while creating
any invoice.

🟢 Step 2: Create Invoices with Grouping

Navigation:​
Navigator → Payables → Invoices → Tasks → Create Invoice

1.​ Create First Invoice​

○​ Supplier: 2130​

○​ Group: E30​

○​ Invoice Number: 1007​

○​ Amount: ₹1,00,000​

○​ Type: Standard​

○​ Payment Terms: Immediate​

○​ Distribution Set: P30_WITH_PERCENTAGE​

○​ Save and Validate​

2.​ Create Second Invoice​

○​ Supplier: Sony 130​

○​ Invoice Number: 1008​

○​ Amount: ₹2,00,000​

○​ Group: (automatically taken as E30)​

 ○​ Distribution Set: P30_WITH_PERCENTAGE​

○​ Save and Validate​

✅ Now both invoices are grouped under 'E30'.

🟢 Step 3: View Grouped Invoices

Navigation:​
Navigator → Payables → Invoices → Tasks → Manage Invoices

●​ Use search filter → Invoice Group = E30​

●​ Only the two grouped invoices (1007, 1008) will appear.​

💡 You can even use the group while making payments — Oracle will only
select invoices under that group.

🔴 Optional Step: Disable Invoice Grouping

If you don’t want to use grouping anymore:

Go back to:​
Manage Invoice Options

●​ Uncheck Require Invoice Grouping​

●​ Click Save and Close​

🔓 Now, you can go back to entering individual invoices without a group.

📌 Summary
Featu Description
re
 Invoic A batch name for organizing related invoices
e
Group

Use Rent invoices, department-wise grouping, project expenses

Case

How Enable in "Manage Invoice Options", enter group name during

to Use invoice creation

Benefi Easier validation, reporting, and bulk payments

t

Disabl Yes, anytime via invoice options

e?

Here’s a simple and clear explanation of how invoice cancellation works in Oracle Fusion
Payables — including the steps and rules to follow.

❌ What Is Invoice Cancellation?

Cancelling an invoice means you are voiding the invoice completely — as if it never
existed — only if it’s unpaid.

📌 Rules for Cancelling an Invoice

Condition Action Required

Invoice is Unpaid You can cancel it directly

Invoice is Paid You must cancel the payment first, then cancel the
invoice

🟢 Steps to Cancel an Unpaid Invoice

✅ Step 1: Search for the Invoice
Navigation:​
Navigator → Payables → Invoices → Tasks → Manage Invoices

●​ In the search screen, enter the Invoice Number (e.g., INV-001)​

●​ Ensure the Status is Validated (i.e., it's not paid)​

✅ Step 2: Open and Cancel the Invoice

1.​ Select the invoice from the search results​

2.​ Click Edit​

3.​ Go to Invoice Actions → Click Cancel Invoice​

4.​ Confirm the cancellation​

5.​ Click Save​

✅ Step 3: Verify the Status

●​ After saving, the Invoice Status will show: ✅ Cancelled​
●​ Amount will be updated to: ₹ 0​

●​ This means the invoice is successfully voided and won't be picked for payment or
reporting.​
🔁 What if the Invoice Is Paid?
If the invoice is already paid, then you cannot cancel it directly. You must:

1.​ First cancel the payment​

2.​ Then follow the same steps above to cancel the invoice​

💡 This ensures accounting and audit trail remains consistent.

📌 Summary
Feature Description

Can cancel ✅ Yes, directly via "Cancel Invoice"

unpaid?

Can cancel paid? ❌ No, must cancel payment first

Status after cancel "Cancelled", Amount becomes ₹0

Navigation Path Payables → Invoices → Manage

Invoices

Let me know if you want a sample scenario or visual flow for the paid invoice cancellation
process too!

Here's a clear and easy explanation of the "Invoice Holds" concept in Oracle Fusion
Payables:

🧾 What Are Holds?

The term "Hold" means you're stopping or blocking further processing of an invoice —
usually due to a problem or missing information.

✅ You cannot validate or pay an invoice that has a hold on it.

🔍 Why Use Holds?

To prevent further actions like validation or payment when:

●​ There's a dispute with a supplier​

●​ Important data is missing or incorrect​

●​ You need more time to review or approve the invoice​

✌️ Types of Holds
Type Who Applies It Who Removes It When It’s Used

Manual User (You) User (You) Disputes, internal reviews, etc.

System System (Automatic) System (Automatic) Data mismatch or validation errors

🧑‍🔧 1. Manual Hold

You manually apply and release the hold based on your business need.

🔁 Process:
1.​ Create hold and release reasons​
Navigation:​
Setup and Maintenance → Financials → Payables → Manage Invoice
Hold and Release Reasons​

2.​ Create invoice → Apply Hold​

Navigation:​
 Payables → Invoices → Tasks → Create Invoice → Invoice Actions
→ Manage Holds​
➕ Add the hold (select the reason you defined)​

3.​ Validate Invoice​

It will show "Needs Revalidation" because it's on hold.​

4.​ Release Hold Once Issue is Resolved​

Navigation:​
Invoice Actions → Manage Holds → Release​
🔁 Pick release reason → Save → Invoice gets validated​

🖥️ 2. System Hold
Oracle places a hold when it finds issues during validation, like:

●​ Distribution amount doesn’t match invoice amount​

●​ Missing accounting codes​

●​ Invalid dates or mismatches​

Example:

You enter an invoice for ₹80,000 but mistakenly distribute only ₹79,999.​
System will place a "Distribution Variance" hold.

🔁 How to Resolve System Hold

1.​ Fix the problem (e.g., update the distribution amount to ₹80,000)​

2.​ Validate invoice again​

3.​ System will automatically remove the hold​

⚠️ You cannot manually release system holds.

🧠 Summary
 Hold Type Apply Releas Purpose
e

Manual You You Disputes, review, business

needs

System Syste System Validation errors, missing data

m

Once all holds are released, you can:

●​ ✅ Validate​
●​ 💰 Make payment​
●​ 📚 Account the invoice​

Let me know if you want a diagram or flowchart for this process!

Here's a clear and simplified explanation of the Override Account feature in Oracle Fusion
Payables (AP):

🔄 What is Override Account?

Override Account is a new feature in Oracle Fusion that allows you to change
accounting entries even after the invoice has been accounted and transferred to GL
(General Ledger).

🔧 Think of it as a way to fix mistakes in accounting—for example, if you

posted an invoice to the wrong expense account.

🧠 Why is it Useful?
●​ Sometimes invoices or payments are posted to incorrect accounts.​
 ●​ Earlier, you'd need to do manual GL adjustments or reverse the transactions.​

●​ Now, with Override Account, you can directly correct the account from the invoice
or payment screen even after it’s accounted and posted to GL.​

✅ Where Can It Be Used?

●​ In Payables (AP) for Invoices​

●​ In Payments​

●​ In other subledgers as well — not just AP​

🪜 Steps to Use Override Account

🔹 Step 1: Query and Open Invoice
Navigation:

Navigator → Payables → Invoices → Manage Invoices

●​ Search for the invoice (e.g., 100000)​

●​ Open it → click Edit​

●​ Ensure the invoice is in Validated status​

🔹 Step 2: Access Accounting Entries

●​ Click on the Accounting button​

●​ Locate the account line you want to change (e.g., Item Expense Account)​

●​ Place your cursor on that line​

 ●​ Click Override Account​

🔹 Step 3: Modify the Account

●​ Enter the New Account​

●​ Provide a Reason (e.g., "Testing" or "Wrong account corrected")​

●​ Click Submit​

System will:

●​ Reverse the old journal entry​

●​ Create a new one with the updated account​

🔹 Step 4: View Updated Journal in GL

Navigation:

Navigator → General Accounting → Journals → Manage Journals

●​ Search using Journal Batch Name (you copied it earlier)​

●​ Open the journal​

You’ll see:

●​ Old account reversed​

●​ New account debited/credited correctly​

✅ This ensures the correct accounting reflects in GL, without manual journal
corrections.

🧾 Example
 Before Override After Override

Dr: 511502 Cr: 511502

Cr: 511100 Dr: 511100

So the accounting has moved from one account to another, properly and traceably.

📌 Summary
●​ ✅ Fix errors in posted accounting entries​
●​ ✅ No need to reverse or re-enter entire invoices​
●​ ✅ Audit trail is maintained (you provide a reason)​
●​ ✅ Works for invoices, payments, and more​

Let me know if you want a flowchart or a step-by-step visual guide for this!

Here’s a simple and clear explanation of the Manual Payment process in Oracle Fusion
Payables:

💡 What is Manual Payment?

Manual Payment is used to record a payment made outside Oracle Fusion, for example:

●​ You were in a remote location or server was down​

●​ There was an urgent payment requirement​

●​ You wrote a physical cheque or made a cash transfer​

●​ But in Oracle Fusion, the invoice is still showing as unpaid​

 ✅ So now you want to update the system to reflect that the payment has
already been made outside.

🧠 Why Use Manual Payment?

●​ To record the payments already done manually/outside the system​

●​ So that:​

○​ The invoice is marked as Paid in Oracle​

○​ The accounting is correctly updated​

○​ The payment appears in reports and reconciliations​

🪜 Steps to Record a Manual Payment

🔹 Step 1: Navigate to Manual Payment
Navigation:

Navigator → Payables → Payments → Tasks → Create Payment

🔹 Step 2: Enter Manual Payment Details

●​ Payment Type: Select Manual​

●​ Disbursement Bank Account: Choose the account used for this payment (e.g., E30
Internal)​

●​ Payment Process Profile: (e.g., E30 PBP)​

●​ Document: (e.g., E30 Check)​

✅ This setup tells Oracle you made the payment manually (outside the
system).
🔹 Step 3: Link the Invoice to the Payment
●​ Go to Invoice to Pay section​

●​ Click Select and Add​

●​ Search and select the unpaid invoice (e.g., 1008, 1000)​

●​ Click Apply​

🔹 Step 4: Save and Close

●​ Click Save and Close​

●​ Now, the invoice status becomes Paid, and accounting will be generated as if it was
paid through the system.​

📌 Summary
Action Purpose

Manual payment creation Record offline/urgent payments

Type = Manual Tells Oracle this was done

outside

Link to existing invoice Marks the invoice as paid

Saves accounting Keeps audit trail and reporting

consistency
Here's a clear and simple explanation of the Refund process in Oracle Fusion
Payables:

💡 What is a Refund in Payables?

A Refund is used when you need to get money back from a supplier. This can happen
due to:

●​ Excess payment to the vendor​

●​ Returned goods​

●​ Overcharged invoices​

🧾 Instead of making a payment to the supplier, you're recording money

received from them.

🔁 When is Refund Used?

You use the Refund feature to record:

●​ A supplier sending you a cheque​

●​ Money credited back to your account​

●​ Based on a credit memo or debit memo (i.e., negative invoice)​

🪜 Steps to Create a Refund Payment

🔹 Step 1: Navigate to Refund Creation
Navigation:

Navigator → Payables → Payments → Tasks → Create Payment

🔹 Step 2: Enter Refund Details
●​ Supplier: (e.g., Sony 130)​

●​ Type: Select Refund​

●​ Disbursement Bank Account: (e.g., P30 Internal)​

○​ This is your bank account where the refund money is deposited​

●​ Payment Method: Select Check​

●​ Document Number: Enter the cheque number or reference (e.g., 123456)​

○​ This is the supplier’s cheque/reference, not Oracle’s auto-numbering​

🔹 Step 3: Link the Refund to Credit/Debit Memo

●​ Go to Invoice to Pay section​

●​ Click Select and Add​

●​ Choose a negative amount invoice, usually:​

○​ Credit Memo or Debit Memo​

●​ Example: Credit Memo 1003 for ₹75,000​

●​ Click Apply​

Now, Oracle understands this is money coming back to you from the vendor.

🔹 Step 4: Save and Close

●​ Click Save and Close​

●​ Oracle marks the credit memo as paid, and your books are updated​
📌 Summary
Action Description

Refund Payment Used to record money received from supplier

Linked to Credit Memo / Debit Memo (negative invoice)

Bank Account The account where you receive the refund

Check Number Enter vendor's cheque/reference number

Accounting Updates AP and GL to reflect refund correctly

Let me know if you'd like a visual flowchart, practice exercise, or want to try a real-world
use case!

Here’s a clear and simple explanation of the “Stop Payment” process in Oracle Fusion
Payables:

🛑 What is Stop Payment?

“Stop Payment” is used when you've already issued a payment to a supplier, but due to
some reason—like insufficient funds, incorrect payment, or fraud concern—you want to
stop that payment before it clears.

This halts the processing of the payment temporarily, and you can take necessary actions
(like refund, void, or reissue later).

📌 Common Reasons to Use Stop Payment:

 ●​ You realize funds are not available in the bank.​

●​ Incorrect supplier or amount paid.​

●​ You want to delay the payment temporarily.​

●​ You lost the cheque or it’s damaged.​

●​ A dispute arises after issuing payment.​

🪜 Steps to Stop a Payment

🔹 Step 1: Query the Payment You Want to Stop
Navigation:

Navigator → Payables → Payments → Tasks → Manage Payments

🔹 Step 2: Search for the Payment

You can search by:

●​ Payment Number (e.g., 1002)​

●​ Or by Supplier Name​

Check the Status of the payment — it should be "Negotiable", meaning it’s still active and
not cleared yet.

🔹 Step 3: Initiate Stop

●​ Select the payment record (e.g., 1002)​

●​ Click on Actions → Initiate Stop​

●​ Enter a reason (optional but recommended)​

●​ Click Submit​
 💡 Once you initiate stop, you must notify your bank immediately to stop
processing the cheque/payment.

📊 What Happens After “Stop Payment”?

Status Description

Stop Initiated The system marks the payment as on hold

Payment is Further processing won’t happen unless manually resumed or voided

paused

Bank You should inform your bank outside the system to physically stop the
Notification cheque or transfer

✅ Example Scenario
Let’s say you issued cheque #1002 to a supplier:

●​ You realize your bank balance is insufficient.​

●​ You go to Oracle → Query cheque #1002​

●​ Initiate Stop Payment​

●​ Status changes to “Stop Initiated”​

●​ You inform your bank to hold/delay the cheque​

Let me know if you’d like me to explain Void after stop, or how to reissue a stopped
payment.

Here's a clear and simple explanation of the "Cancel Stop / Release Payment" process in
Oracle Fusion Payables:
🔄 What is Cancel Stop / Release Payment?
This feature is used after you've already initiated a Stop Payment, but now you want to
undo it — because the reason for stopping the payment no longer exists (e.g., now
funds are available, or dispute is resolved).

It restores the payment document back to its normal, active state.

🧠 Why Use This?

You initially stopped a payment due to:

●​ Insufficient funds​

●​ Dispute with supplier​

●​ Accidental payment​

Now, the issue is resolved and you want to proceed with the payment — so you use this to
cancel the stop and reactivate the payment.

🪜 Steps to Cancel Stop and Release Payment

🔹 Step 1: Query the Stopped Payment
Navigation:

Navigator → Payables → Payments → Tasks → Manage Payments

🔹 Step 2: Search the Payment

●​ Search by Supplier Name (e.g., "Sony 130") or Payment Number​

●​ Filter by Payment Status = Stop Initiated​

🔹 Step 3: Cancel Stop

 ●​ Select the payment​

●​ Go to Actions → Cancel Stop​

●​ System will prompt confirmation → Confirm it​

✅ Result:
●​ Status changes from Stop Initiated → Negotiable​

●​ The payment is now active again​

●​ You can proceed as if the stop was never done​

💡 Example:
Let’s say you stopped Payment #1005 yesterday due to low balance.​
Now today the balance is available, so:

1.​ Query Payment #1005​

2.​ Status shows: Stop Initiated​

3.​ Click Actions → Cancel Stop​

4.​ Now status becomes Negotiable​

5.​ You’re good to go!✅ ​

Here’s a clear and simple explanation of the "Void Payment" process in Oracle
Fusion Payables:

💥 What is Void Payment?

Void = Cancel a payment document​
It is used when you’ve already made a payment, but something went wrong, such as:

●​ Dispute with supplier​

 ●​ Duplicate payment​

●​ Incorrect bank account used​

●​ Payment was not supposed to be made​

👉 So, you void the payment to reverse or cancel it in the system.

🧠 Key Concept:
Voiding does not always cancel the invoice.

●​ You can choose to cancel the payment only​

●​ Or also cancel the invoice, or even put it on hold​

🪜 Steps to Void a Payment in Oracle Fusion

🔹 Step 1: Query the Payment You Want to Void
Navigation:

6.​ Navigator → Payables → Payments → Tasks → Manage Payments

●​ Enter the Supplier Name (e.g., "2130")​

●​ Enter the Payment Number (e.g., "100002")​

●​ Search for the payment​

🔍 The Payment Status should be: Negotiable​

(This means it's still valid and hasn’t been cashed/cleared yet.)

🔹 Step 2: Void the Payment

●​ Select the payment​
 ●​ Go to Actions → Void​

●​ System will ask:​

“What do you want to do with the invoice?”

You have 3 choices:

1.​ Cancel Invoice – If you want to cancel invoice too.​

2.​ Place Hold – If you want to stop further actions until issue is resolved.​

3.​ None – Only cancel the payment, leave invoice untouched.​

✅ Choose what suits your situation, then click Submit

✅ Result:
●​ Payment Status becomes: Voided​

●​ Depending on what option you chose, the Invoice may be:​

○​ Still active​

○​ Cancelled​

○​ On Hold​

💡 Example:
Let’s say you paid Invoice 1002, but realized there was an error.

1.​ You query Payment #100002.​

2.​ Click Void.​

3.​ Choose "None" if you just want to cancel the payment, and keep invoice active.​

4.​ Submit.​
 5.​ Payment is now Voided, invoice still Valid.​

Here’s a clear and simple explanation of the Reissue Payment process in Oracle Fusion
Payables:

💡 What is Reissue Payment?

Reissue Payment is used when:

1.​ ✅ A check has been issued, but:​

○​ The supplier says it is damaged​

○​ The check is lost​

○​ Or it was never deposited​

2.​ ✅ You still want to pay the same invoice, for the same amount, but need to issue
a new check.​

🧠 Important Points:
●​ Old payment (check) will be voided (cancelled).​

●​ A new check will be issued automatically.​

●​ Amount stays the same.​

●​ Invoice stays paid – just a new payment document is linked to it.​

This ensures tracking is clean, and you avoid duplicate payments.

🪜 Steps to Reissue a Payment

🔹 Step 1: Query the Payment to Reissue
Navigation:
Navigator → Payables → Payments → Tasks → Manage Payments

●​ Enter Supplier Name (e.g., "Sony 130")​

●​ Enter Payment Number (e.g., "100001")​

●​ Click Search​

🔍 Payment status should be: Negotiable (i.e., active/issued)

🔹 Step 2: Reissue the Payment

●​ Select the payment​

●​ Go to Actions → Reissue​

●​ Oracle will:​

○​ Void the old check​

○​ Generate a new payment document (e.g., "100004")​

○​ Issue same amount, for the same invoice​

✅ Click Submit

🔹 Step 3: Verify the New Payment

Navigation:

Navigator → Payables → Payments → Manage Payments

●​ Enter new Payment Number: e.g., "100004"​

●​ Supplier: "Sony 130"​

●​ Click Search​
✅ You’ll see:
●​ Status: Negotiable​

●​ Amount: 50 lakhs (same as original)​

●​ Invoice: Same invoice number is linked​

🎯 Example Use Case:

You issued check 100001 for ₹50 lakhs to supplier Sony.​
But the supplier says the check is:

●​ Damaged​

●​ Or lost​

You:

●​ Reissue the payment​

●​ Old check 100001 is voided​

●​ New check 100004 is created for ₹50 lakhs​

●​ Invoice remains paid​

Here’s a clear and structured explanation of the Payment Process Request (PPR) in
Oracle Fusion Payables — simplified for easy understanding:

✅ What is PPR (Payment Process Request)?

PPR is a bulk payment method used to pay multiple invoices at once using a batch
process.

💡Why use PPR?

●​ Instead of paying one invoice at a time (like quick payment or manual payment),​
 ●​ PPR allows you to automate and bulk-process payments for many suppliers at
once.​

●​ The system automatically selects eligible invoices based on selection criteria

you define (like due dates, supplier name, etc.).​

🪜 Steps to Process a PPR in Oracle Fusion

Step 1: Submit a Payment Process Request

Navigation:​
Navigator → Payables → Payments → Tasks → Submit Payment Process
Request

●​ Enter PPR Name (e.g., E30_PPR)​

●​ Selection Criteria Tab:​

○​ Pay From Date / Pay Through Date → Tells system to select invoices due
within this date range​
(e.g., June 1st to July 20th)​

○​ Payment Method: Check (system selects only invoices with "Check" as

method)​

○​ Supplier / Pay Group / Currency / Business Unit → Can be used to filter

invoices​

●​ Processing Options Tab:​

○​ ✅ Enable "Review Installments" to review selected invoices​

○​ ✅ Enable "Review Proposed Payments" to check payments before finalizing​
○​ Validation Handling:​

■​ Reject only invoices or payments with errors (others will continue)​

👉 Click Submit
Step 2: Review Selected Invoices (Installments)

Navigation:​
Navigator → Payables → Payments → Tasks → Manage Payment Process
Request

●​ Enter the PPR name (e.g., E30_PPR)​

●​ Status: Installment Selection Pending​

●​ Click Actions → Review Installments​

●​ See list of invoices selected (e.g., 4 invoices, ₹78,000 total, ₹72,000 payable)​

●​ You can:​

○​ Add or Remove invoices​

○​ Click Submit to proceed​

Step 3: Review Proposed Payments

●​ Status: Pending Proposed Payment Review​

●​ Click Actions → Review Payments​

●​ System shows how many checks will be created and for which invoices​

●​ If okay, click Resume Payment Process​

Step 4: Format Payment File

Navigation:​
Navigator → Payables → Payments → Tasks → Create Printed Payment
Files

●​ Enter:​

○​ PPR Name​
 ○​ Internal Bank Account​

○​ Currency (INR)​

○​ Payment Process Profile (e.g., P30_PGP)​

○​ Disbursement Payment Document (e.g., P30 Check)​

●​ Click Submit​

📌 This generates the payment file and reserves a check number (e.g., 100005)

Step 5: Confirm the Payment File

Navigation:​
Navigator → Payables → Payments → Tasks → Manage Payment Process
Request

●​ Find the PPR​

●​ Status: Formatted - Ready for Printing​

●​ You will see:​

○​ Document Number: (e.g., 100005)​

○​ You can mark it as Printed, Spoiled, or Skipped​

●​ Click Submit to confirm the payment​

Step 6: Verify PPR Status

Navigation:​
Navigator → Payables → Payments → Tasks → Manage Payment Process
Request

●​ Enter the PPR name​

●​ Check the status:​

 ○​ Should be Completed​

○​ Payment file: Printed​

○​ Payment status: Completed​

🎯 Summary:
Ste Action Purpose
p

1️⃣ Submit PPR Define which invoices to pay

2️⃣ Review Installments Check and adjust selected invoices

3️⃣ Review Proposed Preview generated checks

Payments

4️⃣ Format Payment Generate payment files & assign check

number

5️⃣ Confirm Payment File Finalize payment printing

6️⃣ Verify Status Make sure payment is successfully completed

Let me know if you want a real-time example walkthrough, a flowchart for better visual
understanding, or how this links to GL and Cash Management.

Here’s a simple and clear explanation of how to adjust a credit or debit memo against
an invoice in Oracle Fusion Payables — step by step.
💡 What is Debit/Credit Memo Adjustment?
●​ A Credit Memo is issued when a supplier gives you a discount or returns part of the
goods/services.​

●​ A Debit Memo is issued when you owe the supplier more due to a mistake or extra
charges.​

●​ These memos are adjusted against a standard invoice to reduce (credit memo) or
increase (debit memo) the invoice amount before making the actual payment.​

🧮 Example Scenario
You received an invoice from supplier Sony for ₹1,00,000.​
They gave you a Credit Memo for ₹40,000 (maybe for returned items).

So:

●​ Invoice amount: ₹1,00,000​

●​ Less: Credit Memo: ₹40,000​

●​ Payable Amount: ₹60,000​

Now let’s see how to do this in Oracle Fusion.

🪜 Steps to Adjust Credit or Debit Memo

✅ Step 1: Create the Invoice (₹1,00,000)
Navigation:​
Navigator → Payables → Invoices → Tasks → Create Invoices

●​ Supplier: Sony 130​

●​ Invoice Number: 1011​

●​ Amount: ₹1,00,000​
 ●​ Invoice Type: Standard​

●​ Payment Terms: Immediate​

●​ Add Line:​

○​ Amount: ₹1,00,000​

○​ Distribution Set: P30 (your accounting setup)​

●​ Actions → Validate​

●​ Status: ✅ Validated​

✅ Step 2: Create the Credit Memo (₹40,000)

Navigation:​
Navigator → Payables → Invoices → Tasks → Create Invoices

●​ Supplier: Sony 130​

●​ Invoice Number: 1012​

●​ Amount: -₹40,000 (negative for credit)​

●​ Invoice Type: Credit Memo​

●​ Payment Terms: Immediate​

●​ Add Line:​

○​ Amount: -₹40,000​

○​ Distribution Set: P30​

●​ Actions → Validate​

●​ Status: ✅ Validated​

✅ Step 3: Make Payment and Adjust Credit Memo

Navigation:​
Navigator → Payables → Payments → Tasks → Create Payment

●​ Supplier: Sony 130​

●​ Payment Type: Quick​

●​ Bank Account: W30 Internal​

●​ Payment Profile: PTP​

●​ Payment Document: P30 Check​

Now under Invoice to Pay section:

●​ Click on Select and Add​

●​ Select:​

○​ Invoice 1011 (₹1,00,000)​

○​ Credit Memo 1012 (-₹40,000)​

●​ Click Apply and then OK​

👉 Oracle will automatically adjust the credit memo, and show:

●​ Standard Invoice: ₹1,00,000​

●​ Credit Memo: -₹40,000​

●​ Net Payment: ₹60,000​

●​ Click Save and Close​

●​ ✅ Payment is issued for ₹60,000​

🎯 Summary:
Document Amount Type Status
 Invoice ₹1,00,00 Standar Created & Validated
0 d

Credit Memo -₹40,000 Credit Created & Validated

Payment ₹60,000 Quick Created after

adjustment

You can do the same process for a Debit Memo, just use a positive amount and "Debit
Memo" as the type. Oracle will add it to the invoice total instead of reducing.

Would you like a diagram or flowchart to visualize this?

Here’s a simple explanation of the "Drill Down to Subledger" concept in Oracle Fusion —
with clear steps and real-life meaning.

🔍 What is Drill Down to Subledger?

In Oracle Fusion, when you create invoices or payments in Accounts Payables (AP), the
system creates journal entries that get transferred and posted to General Ledger (GL).

Now, if someone is working in GL and sees a journal entry — they might wonder:

“Which invoice or payment is this journal coming from?”

That’s where Drill Down comes in.

It lets you:

●​ Start from a journal in GL​

●​ And drill down to the original invoice or payment in AP (Subledger)​

🧮 Example:
 ●​ You create an AP Invoice (Invoice No. 1000) for Supplier Sony worth ₹8,000.​

●​ A journal entry is created and posted to GL (debit expense, credit liability).​

●​ Later, in GL, you see a journal — but want to trace it back to the original invoice.​

●​ Drill down lets you do that — see the original invoice from GL itself.​

🪜 Steps to Drill Down to Subledger (Invoice or

Payment)

✅ Step 1: Open General Ledger

Navigation:

Navigator → General Accounting → Journals → Manage Journals

✅ Step 2: Search for Journals from Subledger

●​ Click on Tasks → Manage Journals​

●​ In the search screen:​

○​ Accounting Period: (Select the relevant month)​

○​ Source: Select Payables​

●​ Click Search​

✅ You’ll see all journals that were generated from Accounts Payables.

✅ Step 3: Open Any Journal Entry

●​ Click on the Journal Name (e.g., Purchase Invoices)​

●​ It opens the Journal Entry Page​

Now you're viewing GL journal lines.

✅ Step 4: Drill Down to Subledger Transaction

●​ In the Journal Lines, click on the amount in the Debit or Credit column.​

○​ This is the key step.​

●​ It opens a popup or detail screen showing:​

○​ Transaction Number (like Invoice #1000)​

○​ Type (Invoice, Payment)​

○​ Status (Validated, Accounted, etc.)​

○​ Supplier Name​

○​ Invoice Number​

○​ Invoice Amount​

●​ If you want even more info, click "View Transaction" — it takes you directly to the
original invoice or payment screen in Payables!​

🎯 Why is this Useful?

●​ Auditors or accountants working in GL can trace every journal entry back to its
origin.​

●​ Helps ensure transparency and correctness.​

●​ No need to go ask AP team — GL user can directly drill down and see
invoice/payment info.​

🔄 Summary
 What You Do What You Get

Query GL Journal Sees journal lines

Click on Debit/Credit Sees Subledger Transaction

Click "View Transaction" Jumps to actual

Invoice/Payment

Here’s a simple and clear explanation of the “Pay Alone” functionality in Oracle Fusion
Payables — with real-world meaning, step-by-step instructions, and when to use it.

💡 What is "Pay Alone"?

👉
"Pay Alone" means:​
For each invoice, the system will generate a separate check (payment) — even if the
supplier is the same.

🎯 Use Case:
If you have 10 invoices from supplier Sony, instead of issuing 1 check for all, you issue:

●​ ✅ 10 separate checks​
●​ ✅ One for each invoice​

🔁 Why is it Useful?
●​ Some vendors request individual payments per invoice.​

●​ You may want to track each invoice payment separately for audit or control
purposes.​

●​ Helpful for confidential or sensitive transactions.​

🔁 Default vs Pay Alone
Type Behavior

Default (Pay Together) One check for multiple invoices (grouped payment)

Pay Alone One check per invoice

🪜 How to Enable & Use Pay Alone

✅ Step 1: Enable "Pay Alone" at Supplier Site Level
🔐 Role: Log in as Procurement Agent
Navigation:

Navigator → Procurement → Suppliers → Manage Suppliers

1.​ Search for Supplier (e.g., Sony 130)​

2.​ Click Edit​

3.​ Go to the Sites tab → Edit Site​

4.​ Go to Site Payments → Payment Specifications​

5.​ ✅ Check the option: "Pay each invoice alone"​

6.​ Save and Close​

📌 This enables the feature — now every invoice created for this supplier will be paid
separately.
✅ Step 2: Create an Invoice
🔐 Role: Payables User
Navigation:

Navigator → Payables → Invoices → Create Invoice

1.​ Supplier: Sony 130​

2.​ Invoice Number: e.g., 1014​

3.​ Amount: ₹60,000​

4.​ Type: Standard​

5.​ Payment Terms: Immediate​

6.​ Add Line & Distribution: ₹60,000​

7.​ Save → Validate​

✅ Invoice is now ready.

✅ Step 3: Create a Payment

Navigation:

Navigator → Payables → Payments → Create Payment

1.​ Supplier: Sony 130​

2.​ Type: Quick​

3.​ Bank Account: P30 Internal​

4.​ Payment Process Profile: P30 PTP​

5.​ Add the invoice (e.g., 1014)​

6.​ Save and Close​

🚫 What Happens if You Try to Mix Invoices?
If you try to select another invoice (e.g., 1006) along with a "Pay Alone" invoice:

🔴 System will show an error:

“You can’t pay this invoice with other invoices because it's a pay alone invoice.”

So:

●​ ✅ You can pay multiple invoices only if Pay Alone is disabled​

●​ ❌ You can’t group Pay Alone invoices with any other invoice​

✅ Summary
Feature Behavior

Pay Alone ON One payment per invoice

Pay Alone OFF One payment for multiple invoices

System Throws error if you try to mix pay-alone invoice with others
Restriction

Here's a clear, step-by-step explanation of Third-Party Payment in Oracle Fusion

Payables — with examples and purpose:

🔍 What is a Third-Party Payment?

A third-party payment means:

You buy goods from one supplier, but you pay another supplier.
🔁 Example:
●​ Your Company: P30 Petrochemicals (First Party)​

●​ Supplier (Goods): Sony 130 (Second Party)​

●​ Supplier (Payment): XYZ 130 (Third Party)​

Scenario:​
You purchase goods from Sony, but Sony asks you to make payment to XYZ — maybe
because:

●​ XYZ is Sony’s parent/child/partner company​

●​ Internal business arrangement exists between Sony and XYZ​

✅ What Are We Trying to Do?

1.​ Create invoice for Sony​

2.​ Make payment to XYZ​

3.​ Link Sony and XYZ through a Third-Party Relationship​

🧩 Key Settings Required

✅ Step 1: Enable "Remit-To Supplier Override" (Invoice Level)
Navigation:

Navigator → Setup and Maintenance → Financials → Payables → Manage Invoice Options

●​ Enable ✅ Allow Remit-To Supplier Override for Third Party Payments​

●​ This lets you choose XYZ as payee when entering an invoice for Sony​
✅ Step 2: Enable "Payee Override" (Payment Level)
Navigation:

Navigator → Setup and Maintenance → Financials → Payables → Manage Payment

Options

●​ Enable ✅ Allow Payment Payee Override for Third Party Payments​

●​ This lets you choose XYZ during payment creation​

✅ Step 3: Create the Third-Party Supplier (XYZ)

🔐 Log in as Procurement Agent
Navigation:

Navigator → Procurement → Suppliers → Create Supplier

●​ Create XYZ 130​

●​ Add Address, Sites, Invoicing and Payments info​

●​ Set Payment Method = Check​

●​ Assign to your Business Unit​

✅ Now you have:

●​ Sony (Supplier of goods)​

●​ XYZ (Supplier who gets paid)​

✅ Step 4: Create Supplier Relationship

Goal: Link Sony → XYZ

Navigation:
Navigator → Procurement → Suppliers → Manage Suppliers → Sony 130 → Edit → Sites
tab

●​ Go to Invoicing tab​

●​ Under Third-Party Payment Relationships ➕ Add:​

○​ Remit-To Supplier = XYZ 130​

○​ Address = XYZ Hyderabad​

○​ From Date = Today​

●​ Save and Close​

✅ This links Sony to XYZ for payments

🧾 Operational Process
✅ Step 5: Enter Invoice for Sony (Goods)
Navigation:

Navigator → Payables → Invoices → Create Invoice

●​ Supplier: Sony 130​

●​ Invoice #: 1015​

●​ Amount: ₹2,00,000​

●​ Terms: Immediate​

●​ Distribution Set: P30​

●​ Save​

🔁 Go to:
Invoice Actions → Manage Installments
 ●​ Change Remit-To Supplier = XYZ 130​

●​ Set Payment Method = Check​

●​ Save and Validate​

✅ Invoice is for Sony, but payment will go to XYZ

✅ Step 6: Make Payment to XYZ

Navigation:

Navigator → Payables → Payments → Create Payment

●​ Supplier: Sony 130​

●​ Payee: Select XYZ 130​

●​ Bank Account: P30 Internal​

●​ Payment Method: Check​

●​ Payment Document: Check #​

●​ Select Invoice 1015 (you’ll see payee = XYZ)​

●​ Apply and Save​

✅ Invoice from Sony paid to XYZ

🧠 Summary Table
Supplier Role Invoice From Payment To
 Sony Goods Vendor (2nd Yes No
Party)

XYZ Payee (3rd Party) No Yes

✅ Why is this Used?

●​ Supplier has subsidiaries or payment routing policies​

●​ Inter-company arrangements​

●​ Multinational or business group payments​

Let me know if you’d like a flowchart or mock invoice screen with labels!

Here’s a clear explanation of Foreign Currency Invoice and Payment in Oracle Fusion
Payables with step-by-step breakdown and why each step matters:

🌍 What is Foreign Currency Invoice and Payment?

It means:

You create an invoice and make a payment in currency other than your
functional currency (usually INR for Indian companies).

Example:

●​ Functional Currency: INR​

●​ Invoice Currency: USD​

●​ Payment Currency: USD​

You enter invoice in USD and make payment in USD.

✅ Why Use This?
●​ You deal with international suppliers​

●​ You want to pay them in their home currency​

●​ Oracle needs exchange rate info to convert between functional and transaction
currencies for accounting​

🔧 Steps to Handle This in Oracle Fusion

✅ Step 1: Create Exchange Rate Type (Already Done)
If needed, you can create a new one in:

Navigator → Setup and Maintenance → Financials → General Ledger → Manage

Conversion Rate Types

Use a custom one like P30_RATE

✅ Step 2: Enter Daily Exchange Rates

You tell Oracle: "$1 = ₹50" (for example)

Navigation:

Navigator → General Accounting → Period Close → Currencies → Daily Rates Tab

●​ Use Create in Spreadsheet​

●​ From Currency: USD​

●​ To Currency: INR​

●​ Rate Type: P30_RATE​

 ●​ Rate: ₹50​

●​ Dates: June 2023 to July 2023​

●​ Submit → Confirmation → Row inserted​

✅ This tells Oracle how to calculate INR value for USD transactions

✅ Step 3: Multi-Currency Bank Account (Already Done)

Bank account must allow foreign currency payments

If already enabled when setting up the P30 internal bank account, skip this step.

✅ Step 4: Create Invoice in USD

Navigation:

Navigator → Payables → Invoices → Create Invoice

●​ Supplier: Sony 130​

●​ Invoice #: 1016​

●​ Invoice Currency: USD​

●​ Amount: $10,000​

●​ Payment Terms: Immediate​

●​ Go to Show More​

○​ Set Payment Currency = USD​

●​ Lines Tab → Add distribution amount ($10,000)​

●​ Save​

●​ Invoice Actions → Validate​

●​ Save and Close​

✅ Now Oracle knows this is a foreign currency invoice

✅ Step 5: Make Payment in USD

Navigation:

Navigator → Payables → Payments → Create Payment

●​ Supplier: Sony 130​

●​ Bank Account: P30 Internal​

●​ Payment Currency: USD​

●​ Payment Method: Check​

●​ Payment Process Profile: P30_PPP​

●​ Payment Document: P30 Check #100013010​

●​ Go to Advanced Tab → Confirm:​

○​ Exchange Rate Type = P30​

○​ Conversion Rate = ₹50​

●​ Invoice to Pay Region → Select and Add Invoice 1016​

●​ Click Apply → Save and Close​

✅ Oracle pays $10,000 to supplier, but books accounting in INR (₹5,00,000)

📌 Summary
Field Value

Functional Currency INR

 Invoice Currency USD

Payment Currency USD

Exchange Rate ₹50 = $1

Invoice Amount $10,000

Functional Value ₹5,00,00

0

Payment $10,000

🧠 Key Points
●​ You must have daily rates for accurate currency conversion​

●​ Both invoice and payment can be in foreign currency​

●​ Oracle will use functional currency (INR) for accounting and reporting​

Great! Let me give you a clear explanation of Cross Currency Payment in Oracle Fusion
with examples and step-by-step logic.

💱 What is Cross Currency Payment?

Cross Currency Payment means:

The invoice is in one currency and the payment is made in another

currency.
🔄 Example:
●​ Invoice Currency = USD ($1,000)​

●​ Payment Currency = INR (₹50,000 using $1 = ₹50)​

✅ You're buying goods in dollars but paying in rupees.

This is a new feature in Oracle Fusion — not available in older versions like
EBS.

✅ Why is it useful?
●​ Helps multinational companies deal with multi-currency vendors​

●​ You don’t need to maintain bank accounts in every currency​

●​ Gives payment flexibility without affecting accounting accuracy​

🔧 Step-by-Step Setup & Process

✅ Step 1: Enable Cross Currency in Payables
Navigation:

Navigator → Setup and Maintenance → Financials → Payables → Manage Payment

Options

Enable these checkboxes:

●​ ✔️ Require Conversion Rate Entry​

●​ ✔️ Allow Cross Currency Payments​
●​ Set the Conversion Rate Type (e.g., P30)​

🧠 This allows Oracle to accept a different payment currency than the invoice currency.
✅ Step 2: Use or Create Exchange Rate Type (Already Done)
No need to repeat if you already created P30 exchange rate type.

✅ Step 3: Create Daily Exchange Rates (Already Done)

You’ve already set:

●​ USD → INR = ₹50​

●​ Valid for June–July 2023​

✅ So Oracle knows how to convert when payment currency ≠ invoice currency

✅ Step 4: Enable Multi-Currency at Bank Account (Already Done)

During bank account creation, make sure to:

●​ Enable multi-currency​

●​ Assign it to INR​

✅ Your bank account should support INR, since you're paying in INR.

✅ Step 5: Create Invoice in USD, but Pay in INR

Navigation:

Navigator → Payables → Invoices → Create Invoice

1.​ Supplier: Sony 130​

2.​ Invoice Number: 1018​

3.​ Invoice Currency: USD​

 4.​ Amount: $1,000​

5.​ Payment Currency: INR (important)​

6.​ Type: Standard​

7.​ Terms: Immediate​

8.​ Lines Tab: Enter $1,000 (or use distribution set)​

9.​ Save​

10.​Actions → Validate​

✅ Now Oracle knows:

●​ Supplier expects $1,000​

●​ You plan to pay in ₹​

✅ Step 6: Create Cross Currency Payment

Navigation:

Navigator → Payables → Payments → Create Payment

1.​ Supplier: Sony 130​

2.​ Bank Account: P30 Internal (must support INR)​

3.​ Payment Currency: INR​

4.​ Payment Method: Check​

5.​ PPP: P30_PPP​

6.​ Payment Document: P30 Check #100011​

7.​ Go to Invoice to Pay Region​

8.​ Click Select and Add → Choose invoice 1018 ($1,000)​

 9.​ Oracle auto-converts:​

○​ Invoice: $1,000​

○​ Payment: ₹50,000 (using exchange rate ₹50/$)​

10.​Save and Close​

✅ Done! Cross currency payment complete.

📌 Summary Table
Field Value

Functional Currency INR

Invoice Currency USD ($1,000)

Payment Currency INR (₹50,000)

Exchange Rate ₹50 = $1

Bank Account INR-enabled

account

Accounting Currency INR (converted)

🧠 Notes for Interview/Discussion

If someone asks about Cross Currency Payment, mention:
 "It's a new feature in Oracle Fusion that allows users to enter an invoice in one
currency (e.g., USD) and make the payment in a different currency (e.g., INR).
To enable this, we configure payment options, use exchange rate types and
daily rates, ensure the bank account supports multi-currency, and select the
payment currency at invoice level."

Perfect! Let's break down and clearly explain the concept of Payables Invoice Aging
Report in Oracle Fusion — step-by-step, with the logic behind each part.

📄 What is the Payables Invoice Aging Report?

The Invoice Aging Report is used to:

🔍 Identify unpaid invoices and how long they’ve been overdue.

It classifies these invoices into "aging buckets" (e.g., 0–10 days, 11–20 days, etc.) so you
can:

●​ Prioritize payments​

●​ Monitor overdue liabilities​

●​ Avoid late payment penalties​

🧠 Why is it Important?
This report helps Accounts Payable teams:

●​ Track how long invoices are pending​

●​ Identify suppliers who are due for payment​

●​ Improve cash flow and vendor relationships​

📊 Example of Aging Buckets:

 Bucket Name Days
Overdue

0–10 Days Recent

11–20 Days Slight Delay

21–30 Days Moderate

31–40 Days High Delay

So, if an invoice is unpaid for 25 days, it falls in the "21–30 Days" bucket.

🔧 Step-by-Step Process
✅ Step 1: Create Aging Periods (Buckets)
Navigation:

Navigator → Setup and Maintenance → Financials → Payables → Manage Aging Periods

1.​ Click ➕ to create a new set.​

○​ Name: E30_AGING_PERIODS​

2.​ In the Aging Period Details, define buckets:​

○​ Bucket 1: 0–10 days​

○​ Bucket 2: 11–20 days​

○​ Bucket 3: 21–30 days​

 ○​ Bucket 4: 31–40 days​

✅ This setup will define how the system classifies overdue invoices.

✅ Step 2: Create Invoice(s) for Testing

Navigation:

Navigator → Payables → Invoices → Task: Create Invoice

1.​ Supplier: Any (e.g., Sony 130)​

2.​ Invoice Number: 1019​

3.​ Amount: ₹1,00,000​

4.​ Invoice Date: Choose an older date like 1st June (to simulate delay)​

5.​ Payment Terms: Immediate​

6.​ Lines Tab: Enter amount ₹1,00,000​

7.​ Distribution Set: Use any valid one (e.g., 30)​

8.​ Save, Validate, then Save and Close​

📌 Since the invoice date is in the past, the system will calculate how late it is today.

✅ Step 3: Run the Aging Report

Navigation:

Navigator → Tools → Schedule Processes → Schedule New Process

1.​ Search for: "Payables Invoice Aging Report"​

2.​ Enter Parameters:​

 ○​ Business Unit: E30​

○​ Aging Period: E30_AGING_PERIODS (from Step 1)​

○​ Include:​

■​ Invoice Details: Yes​

■​ Supplier Details: Optional​

3.​ Click Submit​

4.​ Refresh and Monitor the job until it completes​

✅ Step 4: View and Analyze Report

1.​ Click on Output​

2.​ Choose Export to PDF​

3.​ Open the report — it will show:​

○​ All unpaid invoices​

○​ Their age in days​

○​ The aging bucket they fall into​

✅ Example Results:
Invoice Number Amount Days Aging
Delayed Bucket

1019 ₹1,00,00 6 Days 0–10 Days

0

1006 ₹75,000 23 Days 21–30 Days

 1001 ₹50,000 37 Days 31–40 Days

✅ Summary
Ste Action
p

1 Create Aging Periods (buckets)

2 Enter Invoices (backdated to simulate

delay)

3 Run the Payables Invoice Aging Report

4 View and analyze unpaid invoices by bucket

🧠 Interview Tip
If someone asks:

“How do you track overdue payments in Fusion Payables?”

Say:

"We use the Payables Invoice Aging Report. First, we configure aging buckets
like 0–10, 11–20 days, etc. Then we run the aging report which shows all unpaid
invoices and how long they've been overdue, grouped by these buckets. It helps
in managing cash flow and ensuring timely payments."

Sure! Here's a clear and simplified explanation of the Invoice Approval Process in
Oracle Fusion Accounts Payable — ideal for learning, reference, or interview prep.
✅ What is Invoice Approval in Oracle Fusion?
The Invoice Approval Process ensures that invoices are reviewed and authorized
before payment is made. It’s a rule-based workflow that checks conditions like:

●​ Invoice Amount​

●​ Supplier Name​

●​ Invoice Type (Standard, Credit Memo, etc.)​

●​ Business Unit, Cost Center, etc.​

🔧 1. Setting Up Approval Rules

🔹 Define Rules Based On:
●​ Invoice amount (e.g., more than ₹1,00,000 needs senior manager approval)​

●​ Supplier or supplier site​

●​ Invoice type (Standard, Prepayment)​

●​ Business Unit, Legal Entity, etc.​

🔹 Tools Used:
Tool/Term Purpose

AMX (Approval Management Core engine to manage rules

Extensions)

BPM Worklist User interface to configure and manage approval tasks

Spreadsheet Template Export/import rules via Excel

Task Name FinApInvoiceApproval — the technical workflow
task name

Roles FUN_FINANCIAL_APPLICATION_ADMINISTRATOR_J
OB can access BPM

✅ You can configure invoice approval from Setup and Maintenance >
Financials > Payables > Manage Invoice Approval Rules

🔁 2. Invoice Approval Workflow Process

Step-by-Step Flow:

1.​ Invoice Creation: Invoice is entered in Payables.​

2.​ Validation: System checks if approval is required.​

3.​ Workflow Triggered: If yes, FinApInvoiceApproval workflow starts.​

4.​ Approver Identification: Based on rules, the system finds the correct approver(s).​

5.​ Notification Sent: Approver gets notification via:​

○​ BPM Worklist​

○​ Email​

○​ Fusion app notifications​

6.​ Approve/Reject:​

○​ Approver can approve or reject​

○​ If multiple approvals needed, moves to next level​

7.​ Completion: After all approvals, invoice status becomes “Approved”, and ready for
payment.​
🔒 3. Key Functional Considerations
Feature Description

Hold Codes Invoices can be manually held using codes (e.g., Missing PO, Price
Mismatch)

Supplier You can configure supplier site to auto-hold invoices for certain
Controls validations

Invoice Matching Matching with PO or receipt may auto-release certain holds

Approval History View full approval trail under “Holds and Approvals” tab

Force Approval You can enable this to bypass BPM and approve without rules

Payment Similar process can be set for approving payments after invoice
Approval approval

🧠 Bonus: Approval via Spreadsheet

●​ You can export existing rules or create new ones using Excel.​

●​ Template sheets:​

○​ Invoice Approval Rules (for most invoices)​

○​ Invoice Request Approval Rules (for Supplier Portal invoices)​

🎯 This makes bulk rule updates easier — especially useful in large

organizations.
📌 Summary Table
Area Key Points

Setup Done via BPM Worklist or spreadsheet

Rules Based on amount, supplier, BU, etc.

Workflow FinApInvoiceApproval manages routing

Notification Worklist, Email, Fusion UI

s

Approvals Sequential, Parallel, or Conditional

Auditing Approval and rejection history available

🗣️ Sample Interview Answer

Q: How does invoice approval work in Oracle Fusion?

A: "In Oracle Fusion, invoice approval is handled by the FinApInvoiceApproval

workflow. We set up rules using the BPM Worklist or spreadsheets, based on
criteria like invoice amount, supplier, or type. Once an invoice is created, the
workflow identifies the approver(s), sends notifications, and tracks each
approval step. We can also use holds, match invoices with POs, and review the
approval history on the invoice itself."

Thanks for sharing such a detailed walkthrough! Here's a clear and structured
explanation of the Withholding Tax Invoice Process in Oracle Fusion Payables, based
on everything you've written — broken down into easy-to-follow steps with examples.
📘 What is a Withholding Tax Invoice?
Withholding tax is a tax deducted at source from a supplier’s invoice, which the buyer
(your company) pays directly to the tax authority on behalf of the supplier.

🔁 Real-life Analogy:
Just like your employer deducts TDS from your salary and pays it to the Income Tax
Department, here:

●​ You (company) deduct tax from a supplier invoice​

●​ Pay that tax to the Tax Authority (Govt.)​

●​ You also create a separate invoice in Oracle for the tax deducted — this is the
Withholding Tax Invoice​

🧾 Example Scenario:
●​ Supplier invoice: ₹1,00,000​

●​ Withholding tax: 10% = ₹10,000​

●​ You pay the supplier: ₹90,000​

●​ You create a separate withholding tax invoice of ₹10,000 against the tax
authority supplier.​

✅ Step-by-Step Process in Oracle Fusion:

Step 1: Create a Payables Calendar

This calendar is needed for managing tax periods (like quarterly filings).

●​ Navigation: Setup and Maintenance > Financials > Payables > Manage Payment
Calendars​
 ●​ Create a calendar (e.g., P30_TT_Calendar)​

●​ Choose Quarterly periods​

●​ Generate periods: Q1, Q2, Q3, Q4​

Step 2: Create a Tax Authority as a Supplier

You need this to create the withholding tax invoice later.

●​ Login: Procurement agent​

●​ Navigation: Procurement > Suppliers > Create Supplier​

●​ Enter name (e.g., TAX_130)​

●​ Set Supplier Type = Tax Authority​

●​ Enter address & site details (remit-to only)​

●​ In Payments tab: set default payment method (e.g., Check)​

Step 3: Enable Withholding Tax Options

Set when tax should be calculated and invoice created.

●​ Navigation: Setup and Maintenance > Payables > Tax Reporting and
Withholding Tax Options​

●​ Select your Business Unit​

●​ Choose:​

○​ Event for tax calculation: Invoice​

○​ Event for tax invoice creation: Invoice​

○​ Start date and enable checkbox “Use withholding tax”​

Step 4: Create Withholding Tax Code and Classification

This defines the tax rate and group.

●​ Navigation: Setup > Payables > Manage Withholding Tax Codes​

●​ Create:​

○​ Tax Regime (if not available)​

○​ Tax Code (e.g., WHT_10)​

○​ Tax Rate: 10%​

○​ Tax Classification Group (auto-created with same name)​

●​ Assign:​

○​ Liability Account​

○​ Tax Authority (e.g., TAX_130)​

○​ Site (created in Step 2)​

Step 5: Enable Withholding Tax for the Supplier

Supplier must "agree" to be taxed.

●​ Login: Procurement Agent​

●​ Go to: Procurement > Suppliers > Search for Supplier (e.g., SONY_130)​

●​ In Profile tab > Income Tax tab:​

○​ Enable “Use Withholding Tax”​

○​ Assign Withholding Tax Group (e.g., WHT_10)​

●​ In Sites > Site Assignment:​

○​ Also enable withholding tax and assign the same tax group​
Step 6: Create and Validate Supplier Invoice

●​ Login: Payables User​

●​ Navigation: Payables > Invoices > Create Invoice​

●​ Supplier: SONY_130​

●​ Amount: ₹1,00,000​

●​ Type: Standard Invoice​

●​ Validate Invoice​

●​ Result:​

○​ Invoice Amount: ₹1,00,000​

○​ Withholding Tax: ₹10,000​

○​ Amount Payable: ₹90,000​

Accounting Entries for Supplier Invoice

Account Debit / Credit Amount

Expense Account Debit ₹1,00,00

0

Liability to Supplier Credit ₹1,00,00

0

Less: Withholding Tax Debit ₹10,000

(reverse)

Withholding Tax Credit ₹10,000

Liability
 Payable to Supplier Net Pay ₹90,000

Step 7: System Creates Withholding Tax Invoice

●​ System automatically creates a separate invoice for the tax authority for
₹10,000​

●​ You can query it:​

○​ Navigation: Payables > Invoices > Manage Invoices​

○​ Use Invoice Number with prefix “Withholding”​

Validate and Post this Invoice:

●​ Invoice Type: Withholding Tax​

●​ Supplier: TAX_130​

●​ Amount: ₹10,000​

●​ Post to Ledger​

Accounting Entry for Withholding Invoice

Account Debit / Credit Amount

Withholding Tax Debit ₹10,000

Account

Liability (Tax Authority) Credit ₹10,000

📌 Summary:
Task Description

Who is deducted? Supplier

Who receives the tax? Tax Authority (as a supplier in the system)

Is invoice manual or Supplier Invoice: ManualWithholding Invoice:

automatic? Automatic

Where is tax posted? To a Withholding Tax Account

Key configuration needed? Calendar, Supplier, Tax Codes, Supplier settings

Thanks for sharing all of that! Let me break it down and explain the Invoice Imaging
Process in Oracle Fusion step-by-step in a simpler and clearer way for better
understanding.

🧾 What is Invoice Imaging?

Invoice Imaging is a smart way to automate invoice entry in Oracle Fusion. Instead of
manually entering invoices from physical paper, the supplier scans the invoice and
emails it, and the system picks it up, reads it, and creates an invoice automatically.

🛠️ Why is this used?

●​ No need for manual entry​

●​ Saves time and cost (no courier charges)​

●​ Faster processing, fewer human errors​

✅ Traditional vs Imaging Process
Traditional Process Imaging Process

Supplier prints invoice Supplier scans invoice

Courier sent to company Sends email to Oracle email ID

Employee enters in Fusion Imaging server reads and creates

manually invoice

🔄 Invoice Imaging Flow

1.​ Get Imaging Email ID​

○​ Oracle provides a specific email ID (e.g., abc@oracleimaging.com)

when your company has the license for imaging.​

2.​ Supplier Sends Email​

○​ Supplier scans invoice → sends email (with scanned invoice) to that

Oracle-provided email ID.​

3.​ Imaging Server Picks It Up​

○​ Server opens the email, reads the attachment, and extracts invoice data.​

○​ This data is uploaded into interface tables in Fusion.​

4.​ Run Import Process​

○​ You (Accounts Payable user) run the "Import Payables Invoices"

process in Fusion.​

○​ This creates the invoice in the Fusion application.​

5.​ Check Invoice​

○​ Go to Fusion → Payables → Manage Invoices​

 ○​ You'll see the invoice created with details + attachment.​

🖥️ Navigation Steps in Oracle Fusion

🪪 Step 1: Get Email ID from Oracle
●​ You get an imaging email ID from Oracle upon licensing.​

📤 Step 2: Supplier Sends Invoice

●​ Supplier scans the invoice and emails it to the given ID.​

🧠 Step 3: Imaging Server Processes

●​ Imaging Server opens the email, extracts data, uploads it to interface tables.​

🧾 Step 4: Check Uploaded Invoices

●​ Go to WebCenter Content > Search > Payables Invoices​
You can see invoices uploaded by imaging.​

📥 Step 5: Run Import Process

●​ Navigation: Navigator > Payables > Invoices > Import Invoices​

●​ Select Business Unit, Source = Invoice Imaging, and Submit​

🔍 Step 6: View Final Invoice

●​ Go to Navigator > Payables > Manage Invoices​

●​ Search invoice → view attachments (you’ll see scanned copy)​

📌 Important Notes:
●​ This is a partially automated process: Supplier sends email, server processes
it.​
 ●​ Final step (invoice import) is still triggered manually via a scheduled process.​

●​ This saves data entry effort and ensures accurate invoice creation.​

Would you like a diagram/flowchart for the entire process? It might make it even
clearer.

Great! Let me explain the Supplier Merge process in Oracle Fusion in a clean and
easy-to-understand way, using your example.

🧾 What is Supplier Merge?

Supplier Merge is used when one company is acquired by another, and you want to
transfer all transactions (like invoices, purchase orders) from the old supplier to the
new one.

Think of it like:

🔁 Old Supplier becomes part of the New Supplier, and the old one is
deactivated.

🔍 Example to Understand
Real-World Case:

●​ ✅ Satyam Computers was acquired by Tech Mahindra.​

●​ After the acquisition:​

○​ Satyam's name disappeared.​

○​ All invoices, contracts, and records were moved to Tech Mahindra’s

name.​

Fusion Scenario:

●​ 🏢 Sony (Old Supplier) is being merged into XYZ Ltd (New Supplier).​
●​ All Sony’s invoices, transactions, etc., will be moved under XYZ Ltd.​
 ●​ After the merge, Sony supplier will be inactivated in the system.​

🔄 Step-by-Step Process in Oracle Fusion

🔹 Step 1: Run Supplier Merge
Performed by a Procurement Agent user

Navigation:

Navigator > Procurement > Suppliers > Tasks > Merge Suppliers

1.​ Click ➕ (Create New Merge)​

2.​ From Supplier → Sony​

○​ (This is the supplier being merged/inactivated)​

3.​ To Supplier → XYZ Ltd​

○​ (This is the active supplier taking over)​

4.​ Decide about the site merge:​

○​ Sony and XYZ both have sites in Hyderabad.​

○​ ➕ Do you want to copy Sony’s site as a new one under XYZ?​

■​ ✅ Enable "Copy Sites" if you want both sites to be available
under XYZ.​

■​ ❌ Leave unchecked if you want to merge into existing sites only.​

5.​ Decide what to transfer:​

○​ Options:​

■​ Only Invoices​

■​ Only Purchase Orders​

■​ Both​
 ■​ Unpaid Invoices​

○​ You selected: ✅ All Invoices​

6.​ Click Submit​

🔹 Step 2: Monitor the Merge Process

●​ Go to the Process Region​

●​ Click Refresh​

●​ Wait for the process to succeed​

●​ Click View Output to download the PDF​

Output PDF Includes:

●​ Number of invoices transferred (e.g., 32 invoices)​

●​ Details like:​

○​ Paid/Unpaid​

○​ Recurring invoices​

○​ Tax invoices​

○​ Installments transferred​

🔹 Step 3: Verify the Results

Login as a normal Payables User

Navigation:

Navigator > Payables > Invoices > Manage Invoices

●​ Search by Supplier Name: XYZ Ltd​

 ●​ Now you’ll see invoices which originally belonged to Sony are now listed under
XYZ Ltd​

●​ Sony supplier is inactive now​

🧠 Key Points to Remember

🔹 Feature 🔍 Description
Supplier Merge Used when a company gets acquired

From Supplier The old (acquired) supplier

To Supplier The new (active) supplier

Copy Site Choose if you want to retain both locations/sites

Transaction Transfer You can select invoices, purchase orders, or both

Result Old supplier becomes inactive, all data is moved to new

supplier

Sure! Here's a clear and simplified explanation of the Transfer to General Ledger (GL)
process in Oracle Fusion, based on what you described.

📘 What is "Transfer to General Ledger"?

In Oracle Fusion, different modules like:

●​ Accounts Payable (AP)​

 ●​ Accounts Receivable (AR)​

●​ Cash Management (CM)​

●​ Procurement (PO)​

are called Subledgers because they track individual department-level transactions.

But all financial reporting in an organization happens at a higher level in the General Ledger
(GL). So, we need to transfer the finalized transactions from each subledger (like AP) to
the GL.

🔁 Why Transfer to GL?

You are:

●​ Finalizing data from AP (like invoices and payments)​

●​ Moving this data to General Ledger​

●​ So that your financial reports (like P&L, Balance Sheet) are accurate and complete​

This process is done using the program:

✅ Create Accounting

🧾 What Does "Create Accounting" Do?

The Create Accounting Program does 3 things:

# Step Description

1️⃣ Account Creates accounting entries for AP transactions

2️⃣ Transfer to GL Sends those entries from AP to GL

 3️⃣ Post in GL Posts the journal entries in GL (makes them official in
(optional) financials)

🔹 Transfer and Posting can be done together, or separately based on setup.

🔄 Step-by-Step Process
🔹 Step 1: Run the "Create Accounting" Program
Navigation:

Navigator > Payables > Invoices > Tasks > Create Accounting

Fill the Parameters:

Field Value

Subledger Payables

Ledger e.g., P30 RAPID LEDGER

End Date Till which date you want to transfer (e.g., 30th Jan)

Accounting Mode Final (use "Draft" only if previewing)

Transfer to GL Yes ✅
Post in GL Yes ✅
Report Style Summary or Detailed (your choice)

➡️ Click Submit
🔹 Step 2: Monitor the Process
Navigation:

Navigator > Tools > Scheduled Processes

●​ Look for "Create Accounting"​

●​ It will trigger multiple sub-processes like:​

○​ Create Accounting​

○​ Import Journals to GL​

○​ Post Journals​

✔️ Ensure all processes show status as Succeeded

🔹 Step 3: Verify in General Ledger

Navigation:

Navigator > General Accounting > Journals > Manage Journals

●​ Select:​

○​ Accounting Period → e.g., Jan-23​

○​ Source → Payables​

●​ Click Search​

You will now see:

●​ Journal batches like: "Payables Purchase Invoices"​

●​ Batch Status: Should be "Posted"​

●​ Click any Journal Name to review entries​

What will you see inside:

 ●​ Debit to Expense/Cash Account​

●​ Credit to Liability/Payables Account​

You can also:

●​ 🔍 Click on Amount link (debit/credit) to drill down to the original AP transaction.​

🧠 Summary
Ste Description
p

1️⃣ Run Create Accounting to account & transfer AP data

2️⃣ Choose to post in GL or just transfer

3️⃣ Review Journals in General Ledger

✅ Final result: All AP financial data is now in GL for reporting

Let me know if you want this in a diagram, cheat sheet, or table format for revision!