RELEASE 12 : PAYABLES

Trading Community Architecture

Agenda

 Suppliers
 Bank’s
 Retainage
 Recoupment
 Payments Manager
 AP/AR Netting
Supplier’s

In 11i
 Suppliers defined in AP.
 Supplier contacts replicated for each supplier site.

In R12
 Supplier becomes as TCA Party.
 Suppliers Sites as TCA Party Site for each distinct address.
 Contacts for each supplier/address , it means Single supplier address
and contact can be leveraged by multiple sites, for each OU
– A single change to an address can be seen instantly by all OUs
– No longer need to manually ‘push’ updates across OUs.This can be
best understood by the figure below.
Creating Supplier

Creating Supplier
Select
 Click Apply to
continue

Enter Header Level Info

Select Address book to
Insert Site Address
New Address
Site Name
Click on Create to Create
a new Supplier Bank A/c
Banks and Bank Details

• The Bank Account model in R12 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.

• A single Legal Entity is granted ownership of each

internal bank account. One or more Organizations
are granted usage rights.
Ownership of internal bank account

• Each Legal Entity is granted ownership for each

internal bank account.
• For Granting Access to the Legal Entities log In to Sys
Admin
• Go to “User Management” Responsibility
• Click on “Roles & Role Inheritance”
Give Required
Information

Click on Go
Click on Update
Select
Click on Run Wizard
Select Add Legal Entities to
Give access to Bank Accounts
Click on apply after
Adding Legal Entities
Creating Bank and Bank Branches in Payables

Navigation for Defining

Banks

Select
Select
Click on Create
 Enter Bank
information

Select
Click on Create
to Add Address
Click on
Apply to
Save the
informatio
n entered
Click
 Click Finish after
entering contact info

Click on Create
to enter a
Contact info
Creating Bank Branches

Click on Bank Braches Tab

Create new Bank

Branches
Enter Bank Name and
Country

Click Continue
Enter Branch
Information

Select Save
and Next
Select Create to Fill
Bank Branch Address
Enter Branch
information

Click on Apply
Select
 Click Finish after
entering Contact’s

Click on Create
Contact to add
Contact
Creating Bank Account’s

Navigation

Select
Create New Bank Accounts
 Enter Bank And
Branch Name

Click Continue
 Enter your Legal
Entity in Bank
Account Owner

Select Next
to Continue

Note:- If Legal Entity Is not Granted Access at the Sys

admin Level in “User Management” Responsibility, you
can not View your Legal Entity in the above “Bank
Account Owner” Field.
 Select Save and
Next to Continue

Enter Bank
Account
Information
 Select Save and
Next to Continue

Enter
Required
Information
rest all are
Optional
Select to Grant
Access to
Operating Unit’s
Enter Account use and
Operating Unit

Select Continue
Enter Payment Method
and Category
Select Apply
to continue
Click on Add Organization
Access to Give bank account
access to Multiple Operating
Units Click Save and Next to
Continue
Select Finish to Save your
work

Click on Create Contact to enter

Contact info of Bank account
 Select

Select the Bank Account

Select
Select Apply

Enter
Required
Information
Payment Doc got Created
 Retainage and Retainage Release

• Retainage is the common practice of withholding a fixed

amount / percentage of payment until all work under a
contract is complete and accepted.

• Retainage is also called ‘retention’ or contractual

withholds’.

• At the end of the project or when agreed events have

occurred, the supplier requests the amount retained and
payment is made to release it.

• Retainage comes under Complex Payments

 Contract with Subway

Contract amount 15,000, Retainage 20%

AMT Invoice Retain Amount Amount Paid
1. Stage - 8000 8000 1600 6400
2. Stage - 4000 4000 800 3200
3. Stage - 3000 3000 600 2400
Total - 15,000 3,000 12,000

Release the Retained Amount, Once an Agreed event

Occurred by “Retainage Release Invoice”
 Required Setups

Enter Retainage A/c in

Financial Options
 1. Navigate to Supplier’s Window

3. Select

2. Select

4. Give Retainage Rate

Create Complex Service Agreement in Purchasing

Navigation

Select
Select “Complex Service Agreement”
from list of Values

Click
 Enter Supplier and
Supplier Site

Go To
 Enter Contract
Amount Click on
Update

Enter Type as Fixed Price

Enter Contract
Services
Need by Date
 Select

Enter Retainage
Rate

Enter Charge
Account
Select
Select Split to Split
the Contract into
Stages
 After completion move to the
Distributions Tab

Give the Need

by Date

Enter Type as Split the Contract amt

Lump Sum
After Completion select Submit
Complex Service Agreement has been
Approved. Agreement NO is- 5546
Navigate to Invoice Workbench to Raise Invoice

Enter the
Enter the Agreement No
Invoice Amt

Match Invoice with the

Agreement
Select the Match Amount

Click on Match after Selecting

10 percent of the Total amt got
automatically got Retained

Go to Actions and Pay the

Invoice
Out of 25,000 invoice amt 2,500 got
retained and amount paid to Supplier
is 22,500
 Retainage Release

Select PO Number

Select Invoice Type as Enter Invoice Amt to

Retainage Release be Released

Go to Match and Match

the Agreement
 Select The Po line to be Matched

Release the Amount

After Release go to Payment work

Bench and Pay the Amount
 Contract with Subway

Contract amount- 35000, Prepaid amount-7000

Recoupment Rate 20%

Amount Invoice Pre’ment Applied Amount paid

Stage 1 20,000 20,000 4,000 16,000
Stage 2 15000 15,000 3,000 12,000
Total 35,000 7,000 28,000
Select “Complex Service Agreement”
from list of Values

Click
 Enter Supplier and
Supplier Site

Go To
 Enter Contract Click on
Amount Update

Enter Type as Fixed Price Enter Contract

Services Need by Date
 Select

Advance amount is Prepaid

amt Paid to Supplier

Recoupment rate is
7000/35000*100
Select
 After completion move to the
Distributions Tab

Give the Need

by Date

Enter Type as
Split the Contract amt
Lump Sum
Give Prepaid Account

Click on
Complex Service Agreement has been
Approved. Agreement NO is- 5547
Navigate to Invoice Workbench to Raise Prepaid Invoice

Enter the
Enter the Agreement No
Invoice Amt

Match Invoice with the

Agreement
Select the Match Amount

Click on Match after Selecting

After Matching Pay the

Invoice
Raise a Standard invoice and match with Agreement

Enter the
Enter the Agreement No
Invoice Amt

Match Invoice with the

Agreement
Select the Match Amount

Click on Match after Selecting

Prepayment Automatically applied
according to Recoupment Rate

Pay the Invoice

Total amount paid to Supplier is
20,000
Payments Manager

• The Payments Manager enables you to complete a pay

run from start to finish Payments.

• The Payments Manager is comprised of the following

components:
Payments Dashboard
Templates
Payment Process Requests
Payment Instructions
Payments
Creating Payments through Payment Manager

Navigation

Select
Select
Select to create a
new template
 Enter Template Name

Enter Supplier Name

Select Pay group

After Completion click on

Payment Attributes Tab
 After Completion click on
Process Automation Tab

Select Bank A/c and

Exchange rate Type
 View

Select Apply

When “Initiate Payment Process

Request is complete” is selected
System will Automatically create
Format for the Payments Selected
 Go to

Select
Enter Request Name and Select Template from
list of values

Select User
Rates Tab

Information gets defaulted from Template

 Select Submit “Requests”
Enter exchange rate gets Generated
Report Gets Generated
Go back to

Query the Process

Request

Click on
 Click on submit Request
gets generated

Select to Add or Remove

Payments
3. Go to Payment Instructions
Tab to complete the Payment

1. Query the Process

Request

2. Status changes to
Formatting
Query by Process Request
Name and Creation Date

Select
Select Continue the
Apply
Go to

Query “Process Request

Name”

Status got Confirmed

Navigate to Payments Overview
to view Payments Made
 AP/AR Netting

• The Payables and Receivables Netting feature enables the

automatic netting of Payable and Receivable transactions
within a business enterprise.

• You can predefine a netting agreement that incorporates the

netting business rules and transaction criteria needed to run
your tailored netting process.

• The netting process automatically creates the Payables

payments and Receivables receipts required to clear a
selected number of Payables and Receivables transactions.
Prerequisites for AP/AR Netting

• Define a netting control account in GL.

• Define a netting bank account.
• Associate the bank account with the AP/AR Netting
receipt class.
• Enable the Allow Payment of Unrelated Transactions
Receivables System Option.
• Define Document Sequence for Receipts and
Payments.
Defining Netting Agreement

Navigation

Select
Select
 Select Bank A/C
Enter Operating Unit
name and Rules
And Agreement Name

Select Invoice
and Transaction
Types

Once Finished Click

on Next
Select Supplier and Customer
Select Finish to Complete
Creating Netting Batch

Navigation

Select
Select
 Select the Required Information
and give the Batch Name

Once Submitted go back to Netting Batch Once Finished Click

window and Query the Netting Batch on Submit
 Status got Complete

Click on To View the Transactions

Netted