The Payables module in Oracle Applications allows you to pay your suppliers for merchandise and

services and enables you to manage your procurement cycle. This module consists of two integrated
workbenches, Invoice and Payment.

Matching is a process performed for goods and services ordered through a purchase order that takes
place during the online invoice approval process.

There are three Match Approval levels:

 2-Way:

o The quantity billed is matched against the quantity ordered.

o The invoice unit price is matched against the purchase order line unit price.

 3-Way:

o The quantity billed is matched against the quantity ordered.

o The invoice unit price is matched against the purchase order line unit price.
o The quantity billed is matched against the quantity received.

 4-Way:

o The quantity billed is matched against the quantity ordered.

o The invoice unit price is matched against the purchase order line unit price.
o The quantity billed is matched against the quantity received.
o The quantity billed is matched against the quantity accepted.

The Oracles Payables business flow is setup, supplier entry, invoice entry, payments or disbursements
generation, inquiry and reporting and period-end processing. Each organization must define its specific
operating environment.

What are all the Modules Interacting with AP?

Cash Management
Oracle iExpenses
General Ledger
Oracle Assets
Subledger Accounting (R12)
HRMS
Project Accounting
Purchasing/iprocurement
Global Accounting Engine

What are the mandatory setups in AP?

1- Financial Options
2- Define Suppliers
3- Define Payment Terms
4- Define Payment Methods
5- Define Banks and Banks Accounts And Banks Accounts Documents
6- Open AP Accounts Periods

There are 9 types of Invoices in AP :

 Standard : Standard invoices are the invoices issued by a supplier to the buyer,
representing the amount due for the products or services the supplier has provided to the
buyer
 Credit Memo : Credit memo is an invoice raised by the supplier to the buyer with
negative amount. It reduces the supplier balance and reduces the liability.
 Debit Memo : Debit memo is an invoice raised by the customer to supplier with negative
amount.
 Represents a credit amount, which the supplier owes you. This document is created and sent to
the supplier.

Credit Memo: We will create credit memo invoice whenever supplier is giving the discount and it will be
adjusted in standard invoice. It is always negative amount.
3. Debit Memo: Sometimes Company will deduct some amount from the invoice amount. This will be
adjusted in standard invoice. It is always negative amount.

 Prepayment : Prepayments are the invoices raised to record advance payments to a

supplier or employee.
 Withholding Tax : After you apply withholding tax to an invoice, you can optionally
create invoices to remit withheld tax to the tax authority ,Payables can automatically
create withholding tax invoices, or you can perform this task manually.
 Mixed Invoice: Mixed invoices are the invoices which can have either positive or
negative amounts and can be matched to both purchase orders and invoices.
 Expense Report : Expense reports are the invoices that represent amount due to an
employee for all his business related expenses.
 PO Price Adjustment : PO Price Adjustment Invoices are used for recording the
difference in price between the original invoice and the new purchase order price.
 QuickMatch : Used for quick, high-volume invoice entry for invoices that do not require
extensive validation and defaults.
What are the types of Invoice Matching in AP
Invoice matching can be two-way (invoice to PO), three-way (invoice to PO to receipt) and four-
way (invoice to PO to receipt to inspection of goods)

How many Holds AP have?

System Holds: Tax, Quantity Match, Po amount with Invoice Amount
Manual Holds: Invoice Limit, Hold on Invoice
Can you Release Manual Holds? If Yes, How?
Yes. Holds – Release Holds

How many ways you can pay the Invoice Amount?

Apply in Full
Schedule Payments
Installments

What are the Interface Tables in AP?

AP_INVOICES_INTERFACE
AP_INVOICE_LINES_INTERFACE
AP_INTERFACE_CONTROLS
————————————–
AP_SUPPLIERS_INT
AP_SUPPLIER_SITES_INT
AP_SUP_SITE_CONTACT_INT
AP_SUPPLIER_INT_REJECTIONS

Pre_requirement setups

1) Define Financial Options.

You can define defaults in this window to simplify supplier entry, requisition entry, purchase order
entry, invoice entry, and automatic payments. Use the Financials Options window to define the
options and defaults that you use for your Oracle Financial Application(s). Values you enter in this
window are shared by Oracle Payables, Oracle Purchasing, and Oracle Assets.

 Financial Options
Accounting Tab:You are required to enter defaults for the Accounting Financials Options in the
Accounting region. Accounts Like:Liability, Prepayment, Discount Taken.

Supplier-Purchasing Tab:
Encumbrance Tab

Encumbrance is the name given to funds that have been reserved when a purchase requisition is
finalized and encumbered. When a requisition is processed, funds are placed aside for that transaction.
Those funds are no longer available for use in other transactions, but also have not been included in the
Actual Funds balance because a payment has not yet been generated and the funds have not physically
left the university.
Tax Tab:

Human Resources Tab:

Define Payment terms.

No of sup—no of times purchases

Cash transactions—immediate payment and receiving of material and transaction close

Credit transactions: we receive the material and invoice

Payment based on invoice date or goods receiving date

Define payment terms that can be assigned to an invoice to automatically create scheduled
payments.Payment terms can be defined to create multiple scheduled payment lines and multiple
levels of discounts. Each payment terms line also defines the due or discount amount on a
scheduled payment.

When you define payment terms, you specify payment amounts either by percentages or by fixed
amounts. Payment terms have one or more payment terms lines, each of which creates one
scheduled payment. Each payment terms line and each corresponding scheduled payment has a
due date or a discount date

Example of single discount payment term: 2% discount will be given by supplier, if invoice is
paid within 30 days period
Define Payment Method:

A funds disbursement payment method is a medium by which company, makes a payment to a

third party payee, such as a supplier. You can use a payment method to pay one or more
suppliers. Oracle Payments supports several payment methods for funds disbursement, including
the following:

 Check
 Electronic
 wire
 Clearing

Check: You can pay with a manual payment, a Quick payment, or in a payment batch.

Electornic:Electronic An electronic funds transfer to the bank of a supplier

Wire:Wire Funds transfer initiated be contacting the bank and requesting wire payment to the
bank of a suplier.A payment method where you pay invoices outside of Payables by notifying
your bank that you want to debit your account and credit your supplier’s account with
appropriate funds. You provide your bank with your supplier’s bank information, and your bank
sends you confirmation of your transaction. Your supplier’s bank sends your supplier
confirmation of the payment. You then record the transaction manually.

To define payment terms

1. In the Payment Terms window, enter a unique payment term Name and a Description.
These will appear on a list of values whenever you select payment terms.
2. If you enter Day of Month terms, enter a Cut-off Day.
3. If you enable Automatic Interest Calculation using the Interest Payables Options, enter a
unique value in the Rank field.
4. If you want to make this payment term invalid on and after a certain date, enter that date
in the To field of the Effective Dates region.
5. Enter each payment terms line.
Enter one of the following to determine the portion of an invoice due on the scheduled
payment:
o % Due
o Amount

In the Due tab, enter one of the following to determine the due date on the scheduled
payment line:

o Calendar
o Fixed Date
o Days
o Day of Month, and Months Ahead

CREATION OF SUPPLIER
Set up and maintain suppliers in the Suppliers pages to record information about individuals and
companies from whom goods and services are purchased. You can also enter employees whom
you reimburse for expense reports. When you enter a supplier that does business from multiple
locations, you store supplier information only once, and enter supplier addresses for each
location.

1) Follow the navigation path to create the bank by using the web based oracle screen
Navigation -Payables Responsibility ->>Suppliers ->>Entry

To create a new Supplier click 'Create Supplier' and a form gets open.

Click 'supplier type' to choose appropriate type of supplier

2) Enter the required fields such as name of the Organization and the country of Origin, the Click
'Apply'

2) Enter the required fields such as name of the Organization and the country of Origin, the Click
'Apply'
1 INTRODUCTION

2 DELTA FEATURES OF PAYABLES IN RELEASE 12

3 BASIC SETUPS OF PAYABLES

3.1 CREATE RESPONSIBILITY

3.2 2 SET OPERATING UNIT AT RESPONSIBILITY LEVEL

3.3 DEFINE OPTIONS

3.3.1 Financial Options

3.3.2 Payables System Setups

3.3.3 Payables Options

3.4 DEFINE PAYMENT TERMS

3.5 DEFINE INVOICE HOLD AND RELEASE NAMES

3.6 OPEN PAYABLES ACCOUNTING PERIOD

3.7 CREATE BANK, BRANCH AND BANK ACCOUNT

3.7.1 Create Bank

3.7.2 Create Bank Branch

3.7.3 Create Bank Account

3.8 CREATION OF SUPPLIER

3.8.1 Company Profile

3.8.2 Terms and Control

1 INTRODUCTION
Oracle Release 12.0 is designed to increase the ease with which we understand and process our
worldwide business and address compliance in every nation. It reflects the maturity of several
initiatives designed to rationalize sub ledger bookkeeping, generalize transaction tax compliance
and improve access to sub ledger data, with the intention of both facilitating sub ledger shared
services and improving and standardizing throughput
Some of the new features introduced in Oracle Release 12 are:

a) Change in concept of set of books:

The ledger is a new fundamental concept in Release 12 and replaces the 11i concept of a
set of books. While a set of books is defined by 3 C’s, chart of accounts, functional
currency, and accounting calendar, the ledger is defined by an additional 4th C: the
accounting method. This 4th C allows you to assign and manage a specific accounting
method for each ledger. Ledgers can be combined into ledger sets based on some criteria,
and GL users are assigned with the ledger sets.

b) Legal Entity

Business enterprises can now clearly and efficiently model its legal entities and their
accounting representations in Release 12. Therefore, when a legal entity is subject to
multiple reporting requirements, separate ledgers can be used to record the accounting
information.Legal Entities can be mapped to entire Ledgers or if you account for more than
one legal entity within a ledger, you can map a legal entity to balancing segments within a
ledger.

c) Primary Ledger & Secondary Ledger:

Now there is a primary ledger to act as the main record keeping ledger and one or more
secondary ledgers to retain alternate representations for the different reporting
requirements.Each secondary ledger can differ from the primary ledger by the chart of
accounts, calendar, currency, and accounting method. In R12, Multiple Reporting
Currencies (MRC) is renamed to Reporting Currencies and vastly improved the setup and
integration of reporting currencies.

d) Introduction of new segment:

In terms of management reporting, you can now designate a segment in your chart of
accounts as the management segment, such as a Dept, Line of Business, or CostCenter-
something with management responsibility. A new feature called Data Access Sets allows
you to specify read only or read and write access for a legal entity, ledger, balancing
segment value or management segment value.

2 DELTA FEATURES OF PAYABLES IN RELEASE 12

New interface for Suppliers Entry and Maintenance

Now Supply Entry and Maintenance is done through a new HTML user interface. It has
an ability to tailor a quick update page for faster maintenance. The new addition is of a
survey section, which is to provide access to supplier questionnaires.(Details are
Discussed further)
Representation of Suppliers in the Trading Community Architecture (TCA)

TCA is a single repository to store information about the trading partners – customers,
suppliers and organization. TCA registry ID is also gets created along with the Supplier
number. Following are the features of TCA:

 Data Librarian Function & Processes

 Integrated Enrichment Capabilities including D&B
 Address Validation
 Data Consistency
 Ease of Data Maintenance

Introduction of Invoice Lines

Oracle Payables incorporates Invoice Lines into the invoice model. Adding Invoice Lines
a key architectural change, which enables Oracle Payables to better model the paper or
electronic business document yet maintain key features that exist at the invoice
distributions level.

Now invoices are modeled as Headers, Lines & Distributions

 Comes close to real-life Invoice Documents

 Consistent AP Model – Enhanced Matching
 Granularity of Workflow Approval
 Support Applicability Model for Tax
 Better support for Corrections

Enhanced Invoice Approval Includes Line Level Approval

With the introduction of Invoice Lines, users are able to further extend their approval
policy by getting approved one specific line or set of lines for PO matched
Invoices.Approvers view only the information that they can approve or reject.

Multi-Org Access Control

MOAC is a sub feature of Access Control that enables you to define multiple
Organizations and the relationships among them within a single installation of Oracle
Applications.The primary advantage of MOAC is that you can take action on documents
in different operating units without logging into different responsibilities. Data security is
maintained using security profiles that are defined for a list of operating units for which
specific users are given data access privileges.

Enhancements to Payment Banks, Branches and Accounts

Shared Service approaches to disbursement and collections are enhanced by the

deployment of Oracle Cash Management’s new Bank Account model. It provides a single
access point for defining and managing internal bank accounts for Oracle Payables,
 Oracle Receivables, Oracle Payroll, Oracle Cash Management, and Oracle
Treasury.Banks and Bank Branches are represented in Oracle’s Trading Community
Architecture and shared by other Oracle E-Business Suite applications. The Bank
Account is centrally defined, managed and secured and includes the legal ownership and
operating unit access for each bank account

Accounts Receivable / Accounts Payable Netting

It is a new feature in R12 which enables automatic netting of Payable and receivable
transactions within a business enterprise. It also leads to automatic creation of Payables
payments and Receivables receipts to clear a selected number of Payables and
Receivables transactions.

Non PO Invoices Entered via iSupplier Portal

Invoices entered by Suppliers where a purchase order has not been obtained are
represented as Invoice Requests. Invoice Requests are visible in Oracle Payables but are
not paid or accounted until the invoice can be verified and approved

3 BASIC SETUPS OF PAYABLES

3.1 CREATE RESPONSIBILITY

First of all, create an Accounts Payables responsibility.

Navigation ->>System administrator ->>Security ->> Responsibility->> Define

Open the form; enter the new responsibility name along with the other mandatory information
and save it.
3.2 SET OPERATING UNIT AT RESPONSIBILITY
LEVEL
Attach the "Payables responsibility" responsibility with the MO Operating Unit Profile.

Navigation ->>Systemadministrator ->>Profile ->> System

Open the form, check responsibility box and enter the name of responsibility. Then enter profile
name and click on find. MO: Operating Unit Profile option is used if the user is to be given the
access to only one OU as against MO: security Profile for Multiple OU access.
Attach the "Payables responsibility" with the HR Business group & HR security profile, in the
same way as we have done above.

HR Business group
HR security profile
3.3 DEFINE OPTIONS
3.3.1 Financial Options

Define defaults values to simplify supplier entry, requisition entry, purchase order entry, invoice
entry, and automatic payments. Depending on the application, all fields may not be required to
be entered.

1) Follow the navigation path

Navigation ->>Payables Responsibility ->> Setup ->>Options ->> Financials Options

2) Enter the account information into the Accounting tab.

FIELDS DATA
Operating Unit Specify an Operating Unit.
Liability Account This account is assigned as the default Liability Account for all
newly entered suppliers.
Discount Account This account is used to record the discounts taken on payments.

3) Enter the required information in the Supplier – Purchasing tab.

3.3.2 Payables System Setups

1) Follow the navigation path

Navigation-Payables Responsibility ->>Setup ->>Options ->>Payables System Setup

2) Enter the required information into the relevant fields

FIELDS DATA
Supplier number entry Select an option to enter the supplier numbers manually or Let Payables
automatically generate sequential supplier numbers.

Invoice Match Option Select Purchase Order or Receipts to indicate how to match most
invoices.

Terms Date Basis Select the date that System uses as the payment terms start date when
Payables calculates the due and discount dates for invoice scheduled
payments. This value defaults to new suppliers that you enter.
3.3.3 Payables Options

1) Follow the navigation path

NavigationPayables Responsibility ->>Setup ->>Options ->>Payables Options

2) Enable the required fields the Accounting Option tab

3) Enable "Use Multiple currencies" option to enter and pay invoices in a currency different from
the functional currency.

FIELDS DATA

If the exchange rate changes between invoice entry and payment, Payables
Realized Gain /Loss
automatically calculates the realized gain or loss and records it in this
Account
account.
4) Enable the Options in the different tabs as per the specific requirements.
5) Check the check boxes to define at which point matching is to be done. Example check the
check box ‘Allow distribution level matching’ if we want matching is to be done at each
distribution line separately.

6) Enable 'Automatically create employee as supplier' so that an employee will become a

supplier while entering the employee expense report.
7) Enable the 'Use withholding tax' option to hold some part of an invoice as an advance tax.

3.4 DEFINE PAYMENT TERMS

Define payment terms that can be assigned to an invoice to automatically create scheduled
payments.Payment terms can be defined to create multiple scheduled payment lines and multiple
levels of discounts. Each payment terms line also defines the due or discount amount on a
scheduled payment. While defining payment terms, specify payment amounts either by
percentages or by fixed amounts.

Example of single discount payment term: 2% discount will be given by supplier, if invoice is
paid within 30 days period

1) Follow the navigation path

Navigation-Payables Responsibility ->>Setup ->>Invoice ->>Payment terms

3.5 DEFINE INVOICE HOLD AND RELEASE NAMES

Define hold names that are to be assigned to an invoice during entry to place the invoice on hold.
Payment cannot be applied against an invoice which is on hold, unless either the condition is
fulfilled or we manually release the hold.

Navigation-Payables Responsibility ->>Setup ->>Invoice ->>Hold and Release names

3.6 OPEN PAYABLES ACCOUNTING PERIOD
The period statuses available in Payables are Never Opened, Future, Open, Closed, and
Permanently Closed. To first defined period, Payables assigns a status of Never Opened to the
period. Payables does not allow transaction processing in a period that has never been opened.
After changing the status to Future or Open you cannot change it back to Never Opened.

Navigation-Payables Responsibility ->>Accounting ->>Control Payables Period

3.7 CREATE BANK, BRANCH AND BANK ACCOUNT
3.7.1 Create Bank

Oracle Payables integrates with Oracle Cash Management to set up internal banks. Oracle Cash
Management's bank account model allows users to define and keep track of all bank accounts in
one place and explicitly grant account access to multiple operating units/functions and users.

Using Oracle Cash Management, define internal banks which are used to disburse payments for
Payables transactions.

1) Follow the navigation path to create the bank by using the web based oracle screen

Navigation-Payables Responsibility ->>Setup ->>Payments ->>Bank and Branches

Create a new bank by clicking on create

2) Enter the values in the mandatory fields
First click "Create" to enter the bank address, then click ‘Apply’ to save the address
As address is created, now click 'Save and next'
3.7.2 Create Bank Branch

Navigation -Payables Responsibility ->>Setup ->>Payments ->>Bank and Branches

Click the create button in Bank branches tab

Search the Country name and Bank name for which we want to create a Branch.

Enter the country and the bank name for which branch is to be created

Click 'Continue' then enter the required fields such as 'Branch name'.
After entering the required fields click 'Save and Next 'to continue

In the given screen shot click 'Create' to enter the Branch address
Finally on entering the data in required fields click 'Apply'.

Branch address has been created. Address can further be updated

Click 'Create contact' to add personalize details such as Phone number, email-id etc and finally
click ‘finish’ to complete the branch creation.

3.7.3 Create Bank Account

Navigation -Payables Responsibility ->>Setup ->>Payments ->>Bank Account

Click on 'create' - Enter the country, Bank and Branch name for which Bank Account is to be
created

Click on 'Continue' to enter the other mandatory information

Enter the Bank account owner (legal entity) and mention the account use. Here account usage
signifies the purpose of Bank account e.g. as shown below this Bank account will be used by
accounts payables as well as receivables.

Click on ‘Next’ to enter the other account information such as account name, number, currency
etc
After entering the account information, Click on 'save and Next' to enter the other account
information such as account control, account holder details, contact details etc.
After entering the account contact information click on ‘Finish’ to complete the bank account
creation.

3.8 CREATION OF SUPPLIER

Set up and maintain suppliers in the Suppliers pages to record information about individuals and
companies from whom goods and services are purchased. You can also enter employees whom
you reimburse for expense reports. When you enter a supplier that does business from multiple
locations, you store supplier information only once, and enter supplier addresses for each
location.

1) Follow the navigation path to create the bank by using the web based oracle screen

Navigation -Payables Responsibility ->>Suppliers ->>Entry

To create a new Supplier click 'Create Supplier' and a form gets open.

Click 'supplier type' to choose appropriate type of supplier

2) Enter the required fields such as name of the Organization and the country of Origin, the Click
'Apply'
There are different tabs on the left side of the form. One by one click on the different tabs to
enter the mandatory information and save the changes.

The information for each supplier record is organized into two main sections

a) Quick Update page can be used to maintain existing supplier information. It has key set ups
for the supplier like Purchasing and Payment.
3.7 CREATE BANK, BRANCH AND BANK ACCOUNT
3.7.1 Create Bank

Oracle Payables integrates with Oracle Cash Management to set up internal banks. Oracle Cash
Management's bank account model allows users to define and keep track of all bank accounts in
one place and explicitly grant account access to multiple operating units/functions and users.

Using Oracle Cash Management, define internal banks which are used to disburse payments for
Payables transactions.

1) Follow the navigation path to create the bank by using the web based oracle screen

Navigation-Payables Responsibility ->>Setup ->>Payments ->>Bank and Branches

Create a new bank by clicking on create

2) Enter the values in the mandatory fields

First click "Create" to enter the bank address, then click ‘Apply’ to save the address
Similary create bank account

3.7.2 Create Bank Branch

Navigation -Payables Responsibility ->>Setup ->>Payments ->>Bank and Branches

Click the create button in Bank branches tab as shown below

Search the Country name and Bank name for which we want to create a Branch.

Enter the country and the bank name for which branch is to be created
Click 'Continue' then enter the required fields such as 'Branch name'.

After entering the required fields click 'Save and Next 'to continue

Then In the given screen shot click 'Create' to enter the Branch address
Finally on entering the data in required fields click 'Apply'.

Branch address has been created. Address can further be updated. Click 'Create contact' to add
personalize details such as Phone number, email-id etc and finally click ‘finish’ to complete the
branch creation.

3.7.3 Create Bank Account

Navigation -Payables Responsibility ->>Setup ->>Payments ->>Bank Account

Click on 'create' - Enter the country, Bank and Branch name for which Bank Account is to be
created
Click on 'Continue' after entering the mandatory information

Enter the Bank account owner (legal entity) and mention the account use. Here account usage
signifies the purpose of Bank account e.g. as shown below this Bank account will be used by
accounts payables as well as receivables.

Click on ‘Next’ to enter the other account information such as account name, number, currency
etc

After entering the account information, Click on 'save and Next' to enter the other account
information such as account control, account holder details, contact details etc
 Distribution Sets
A distribution set creates distributions for an invoice where the Purchase Order does not match with
the invoice. You need to assign distribution sets to a supplier site where the Payables module uses
them for every invoice assigned to the supplier site. If a distribution set has not been assigned to a
supplier site, select one when you enter the invoice.

The two types of distribution sets are:

 Full distribution set: Contains the percentages in which the distribution of the Invoice amount is
created.
 Skeleton: Contains no predefined percentages. You need to enter the amount when you enter
the invoice.

To define a distribution se

elect Setup –> Invoice –> Distribution Sets. The Distribution Sets form opens, as shown

Invoice Tolerances
The Invoice Tolerances window allows the end user to define acceptable tolerances, allow variances
between invoices, purchase orders, and obtains receipts and tax information. You can define
tolerances in percent or absolute terms.

Tolerances in Payables store a matching or a tax hold in an invoice, if the value exceeds the
tolerance levels defined in the Invoice Tolerances window. When you submit an invoice for approval,
Oracle Payables checks whether the invoice matches the purchase order or the receipt within the
purchase order tolerance limits you have set.

When you submit the invoice with a tax amount for approval, Payables checks whether the invoice
tax amount equals the calculated tax amount within the tolerance limits you have defined.

If you define a percentage-based tolerance, Payables calculates the tolerance, based on the invoice
amount including the tax. For example, the invoice amount is USD 100, the tax rate is 10%, and the
tax tolerance is 5%. In this case, an Invoice will not be raised on a Tax variance hold if the tax
distribution amount entered ranges from USD 9.5 to USD 10.5.

To define Invoice Tolerances, select Setup –> Invoice –> Tolerances from the main menu

6) What is meant by Distribution Sets:

Ans)You can use a Distribution Set to automatically enter distributions for an invoice when you
are not matching it to a purchase order. For example, you can create for an advertising supplier a
Distribution Set that allocates advertising expense on an invoice to four advertising departments.
You can assign a default Distribution Set to a supplier site so Payables will use it for every
invoice you enter for that supplier site. If you do not assign a default Distribution Set to a
supplier site, you can always assign a Distribution Set to an invoice when you enter it.

Use Full Distribution Sets to create distributions with set percentage amounts, or use Skeleton
Distribution Sets to create distributions with no set distribution amounts. For example, a Full
Distribution Set for a rent invoice assigns 70% of the invoice amount to the Sales facility
expense account and 30% to the Administration facility expense account. A Skeleton
Distribution Set for the same invoice would create one distribution for the Sales facility expense
account and one distribution for the Administration facility expense account, leaving the
amounts zero. You could then enter amounts during invoice entry depending on variables such as
that month's headcount for each group.
15.What id recurring invoices? What are AP setup steps?
Ans) some times suppliers would not be sending any invoices. but still the payment have to
made to home: rent, lease rentals. in this situation we have to create invoice every period wise.
For that purpose we have to create one recurring invoice template. Template means with one
master copy creating the multiple invoices is called template. Here we are creating the one
invoice master copy is formally known as recurring invoice or recurring invoice templat
sample Process Flow for Procure to Pay Cycle?

Ans) Process flow for Procure to pay will go through two departments
(Commercial & Finance)
Procure - Commercial Department The following steps invovle to prcure any item
1. Received Requsition from concern Department
2. Request for Quotation from Suppliers at least three
3. Finalize the best Quotation by keeping in mind about our companies standard
4. Check the Budget for the same
5. Negociate with supplier for more economic pricing and finalize the payment terms
6. Process the PO and forward to the supplier to supply the goods and services

Pay Cycle - Finance Department

The following steps need to be fulfil
1. Invoice should be match with PO
2. Invoice should has all the supporting documents such as PO copy,Delivery note duly signed
by reciever (our staff who authorized to received goods / store keeper)
3. If the invoice is for services then it should be forwarded to the concern department head or
project manager for his confirmation of work done and his approval
4. Even if it not the services invoice, it should forwarded to the concern person's approval who
request the PO for the same
5. Finance can reject the invoice if it is not budgeted and ask for the reasons.
6. After receiving all the confirmation and approvals from the concern department heads the
invoice will be update in to the accounting system first in order to avoid any duplication of
Invoice and PO (it shown on accounting package if the invoice is duplicate if not, altelast it tells
you if the PO already used or cancel)
7. Finance approved the invoice and process the payment base on payment terms with the
supplier.

process of creating an Invoices and transferring it to GL?

Ans)
1. create batch
2. create invoice
3. create distribution
4. validate the invoice
5. actions -à approve
6. if individual create accounting click ok
7. If batch go to batch create accounting.
8. Create accounting hits Payable Accounting(Transfer) ??Program which will create accounting.
9. Run Transfer to GL Concurrent Program
10. Journal Import
11. Post journals
12. Hits balances.

Transfer from AP to GL?

Ans)“Payables transfer to GL program” is used to transfer from AP to GL.