1.

Define Responsibilities:

Security > Responsibility > Define (System Administration)

Description: Use the Define Responsibility window to define responsibilities for each operating unit by
application. When signing on to Oracle Applications, the responsibility chosen determines the data, forms,
menus, reports, and concurrent programs that can be accessed. Consider using naming conventions for the
responsibility names in a Multiple Organization environment. It is a good idea to use abbreviations of the
business function and the organization name to uniquely identify the purpose of the responsibility.

2. Define Chart of Accounts:

Setup > Flex fields > Key > Segments

Description: Use Accounting Flex fields to design the structure of General Ledger accounts. By providing
flexible account structures, Accounting Flex fields enable to take advantage of General Ledger flexible tools
for recording and reporting accounting information.

Note: This setup step is normally completed during Oracle General Ledger setup.

3. Define Functional and Additional Currencies:

Setup > Currency > Define

Description: Use the Currencies window to define non-ISO (International Standards Organization)
currencies, and to enable/disable currencies. Oracle Applications has predefined all currencies specified in
ISO standard #4217. To use a currency other than U.S. Dollars (USD), that currency must be enabled. U.S.
Dollars (USD) is the only currency that is enabled initially.

Note: This setup step is normally completed during Oracle General Ledger setup.

4. Enter Daily Rates:

Setup > Currency > Rates > Daily

Description: Enter the daily rates needed. Typically, you will enter rates to convert foreign currency journal
entries into the functional and reporting currencies. If you do not want to predefine daily rates, you can use
the conversion rate type User to enter daily rates at the time you enter journals. Enter period rates for
running foreign currency revaluation or translation. Enter weightedaverage rates, or let General Ledger
calculate them. General Ledger translates account balances using rates for those accounts you assigned the
rate type.
5. Define the Accounting Calendar:

Setup > Calendar > Accounting > Periods

Description: Create a calendar to define an accounting year and the periods it contains. You should set up
one year at a time, specifying the types of accounting periods to include in each year. Defining one year at a
time helps in being more accurate and reduces the amount of period maintenance you must do at the start
of each accounting period. You should define your calendar at least one year before your current fiscal year.

Note: This setup step is normally completed during Oracle General Ledger setup.

6. Define Ledger:

Setup > Financials> Accounting Setup Manager>Accounting Setup

Description: At least one Ledger needs to be defined before implementing and using Oracle Payables. A
Ledger includes an accounting calendar, a functional currency, Sub Ledger Accounting method, and an
account structure. The accounts define the structure of general ledger accounts. If accounts have not been
defined while setting up a Ledger; the chart of accounts structure needs to be setup to provide valid values
for expense, cash, and accounts payable liability accounts. If the Ledger was previously defined while setting
up a different Oracle Financials product, proceed to the next step. Oracle Payables can be used with multiple
Ledger within a single installation.

Note: This setup step is normally completed during Oracle General Ledger setup.

7. Set System Profile Values:

Profile > System (System Administration)

Description: Profile options specify how Oracle Payables controls access to and processes data. In general,
profile options can be set at one or more of the following levels: site, application, responsibility, and user.
Oracle Payables users use the Personal Profile Values window to set profile options only at the user level.
System administrators use the Update System Profile Options window to set profile options at the site,
application, responsibility, and user levels. You can set or view the following profile options in Oracle
Payables. The table also includes profile options from other applications that are used by Oracle Payables.

Profile Name Value Site ApplicationResponsibilityUser

details printed Optional
Recipient E-mail Optional
Pos Optional
Controls Optional No No
Audit Trail: Activate Optional
Group Optional Standard
Default Address Style Optional Address Style
Default Country Optional Country
Customization Optional
Inverse Rate Optional No
MO: Operating Unit RequiredXXXX XXXX
MO: Security Profile RequiredXXXX XXXX
Printer Optional noprint
Sequential Numbering Optional Always Used
GL: Ledger Name RequiredLedger Ledger
HR: business Group Required XXXX

8. Define Payables Lookups:

Setup > Lookups > Purchasing

Description: A lookup is any predefined value that was not defined in a setup window. Use the Oracle
Payables Lookups window to review and maintain sets of values, or lookups thatare used in Payables. In
some fields, you must select a value from a predefined list of values. Sometimes the values on the list are
items defined in a setup window, such as supplier names, payment terms, or tax codes. Other predefined
sets of values are lookups,which can be viewed, and in some cases, updated, in the Oracle Payables Lookups
window. A lookup category is called alookup type, and the allowable values for the lookup type are
called lookup names. For example, names of invoice types, such as Standard, Prepayment, Debit Memo, and
so on, are lookup names for the lookup type of Invoice Type. You can add lookup names to some lookup
types. For lookup types that you can modify, you can define up to 250 lookup names. For example, you can
define additional values for Source, which you specify when you import invoices. You cannot change lookup
name values after you save them. To remove an obsolete lookup you can disable the code, enter an end
date, or change the meaning and description to match a replacement code.

9. Define Employee Lookups:

Setup > Lookups > Employee

Description: A lookup is any predefined value that was not defined in a setup window. Use theApplication
Utilities Lookups window to review and maintain sets of values, or lookups. For lookup types that you can
modify, you can define up to 250 lookup names. You cannot change lookup name values after you save
them. To remove an obsolete lookup you can disable the code, enter an end date, or change the meaning
and description to match a replacement code.
10. Define Distribution Sets:

Setup > Invoice > Distribution Sets

Description: A Distribution Set can be used to automatically enter distributions for an invoice when not
matched 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 months headcount for each group. If you enable and use a descriptive flex field with
your distribution set lines, the data in the flex field will be copied to the invoice distributions created by the
Distribution Set.

11. Define Locations:

Employees > Locations

Description: Define names and addresses for the locations used within an organization as well as the
location used for the organization itself. , Oracle Purchasing, Oracle Payables and other Oracle Applications
products use locations for requisitions, receiving, shipping, billing, employee assignments and approval
groups.

Note: If Oracle Human Resources is fully installed, location data must be defined using an Oracle Human
Resources login responsibility; you cannot use the windows provided with Oracle Payables. Prior to
accessing this form, you must set the System Profile option HR: User Type to HR User. This value should be
assigned at the Responsibility level.

12. Define Employees:

Employees > Enter Employees

Description: Enter the names, addresses, and other personal details of organization employees. Oracle
Payables uses this information for employee expense reports related transactions.
 Attention: If Oracle Human Resources is installed, you cannot use Oracle Payables to define employee
information.

13. Define Organizations:

Setup > Organizations

Description: Organizations describe distinct entities in the business and may include HR Organizations,
separate manufacturing facilities, warehouses, distribution centers, and branch offices. After identifying and
defining the business group, you need to specify all the organizations within the business group.

Attention: In Oracle Purchasing or Oracle Inventory is installed, you must have at least one Inventory
Organization.

14. Define Payment Terms:

Setup > Invoice > Payment Terms

Description: In the Payment Terms window, define payment terms that can be assigned to an invoice to
automatically create scheduled payments when you submit Payables Invoice Validation for the invoice.
Payment terms can be defined to create multiple scheduled payment lines and multiple levels of discounts.
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 have a due date or a discount date.

15. AME Setup for Invoice Approval:

Prerequisites:-

a. Check the Invoice Approval Workflow at the Payables Option(Payables Responsibility).

b. Check the Validation before Approval if the invoice needs to be validated before it is sent for Approval
( Payables Responsibility
c. The Profile option AME installed should be set to Yes at the Application level for the Payables application
( System Administrator responsibility).
d. Define Users (System Administrator)
e. Login as SYSADMIN

Navigation: User Management> Users

Select your User Name, click on Update, Click on Assign roles

 User Name

XXXX

Click on go and say Update

Click on Assign roles.

Search By

Approvals Management Business Analyst

Roles and Responsibilities
Functional Administrator
Roles and Responsibilities
Approvals Management Administrator
Roles and Responsibilities

Enter Justification for each Responsibility.

6. Login as your user (XXXX).

Navigation: Functional Administrator

Create Grants for your AME Transaction Type.

Note:- It is one time setup only.

7. Switch Responsibility to Approvals Management Administrator.

Select your Transaction type to create Invoice Approval.

Filter

Payables Invoice Approval

Transaction Type

Update this .
Note:- One time setup.
8. Switch Responsibility to Approvals Management Business Analyst.

Select your Transaction type Payables Invoice Approval .

Click on Attributes,
Attribute Category Item Class Data Type Name

All All SUPPLIER_INVOICE_AMOUNT

All

Select your Attribute called SUPPLIER_INVOICE_AMOUNT.

Click on Conditions (Tab on top of the window).

Click on Create and create required condition.

Condition Type Attribute

Ordinary SUPPLIER_INVOICE_AMOUNT

Details
Currency Code SUPPLIER_INVOICE_AMOUNT
RON is greater than or equal to 0 and less than or equal to 9999999999

Click on Apply.

Click on Action Types (On the top of the window)

Select your action type approval-group chain of authority, and say apply.
Click on Approver Groups,

Name Description Order Voting Usage Approver Approver

Number Method type type
XXXX XXXX 1 Serial Static HR People HR People: Person
Approval Approval Name
Select your approver group which has created all ready for this action type.

Click on Return to Dashboard.

Click on Rules (Define the Approval Rules)

Click on Create rule.

Name Rule Type Item Start Date End Date

Class
XXXX Invoice List Header It should be current or future 31-Dec-4712(system
Approval Creation date. defaults)

Say Next, Select your condition which has created on the above setup.

Say Next, Select your Action type and Action.

Say Next, and say Finish.

16. Define Financials Options:

Setup > Options > Financials

Description: Use the Financials Options window to define the options and defaults used for Oracle Financial
Application(s). Values entered in this window are shared by Oracle Payables, Oracle Purchasing, and Oracle
Assets. Defaults can be defined in this window to simplify supplier entry, requisition entry, purchase order
entry, invoice entry, and automatic payments. Depending on the application, you may not be required to
enter all fields. Although you only need to define these options and defaults once, you can update them at
any time. If you change an option and it is used as a default value elsewhere in the system, it will only be
used as a default for subsequent transactions. For example, if you change the Payment Terms from
Immediate to Net 30, Net 30 will be used as a default for any new suppliers you enter, but the change will
not affect the Payment Terms of existing suppliers.

17. Define Payables System Setup:

These options are defaulted on supplier form. Most of the fields are optional but it is for ease of entering the
supplier data. All the fields are changeable on Supplier form or Invoice workbench. You configure the
following in this form:

XXXX OU
Entry Automatic
Type Numeric
Next Automatic Number 1000
Payment
Invoice Currency RON
Pay Group

Terms Date Basis Invoice

Pay Date Basis Due
Payment Terms

Always Take Discount No

Create Interest Invoices No

Control

Invoice Match option Purchase Order

Hold Unmatched Invoices

18. Define Payables Options:

Setup > Options > Payables

Description: Use this window to set control options and defaults used throughout Payables. Defaults in this
window will simplify supplier entry, invoice entry, and automatic payment processing. Although you need to
define these options and defaults only once, you can update most of them at any time to change controls
and defaults for future transactions.

XXXX OU
Payment Accounting
When Payment is Issued Yes
When Payment Clears Yes
 Account for Gain/Loss
When Payment Issued Yes
When Payment Clears Yes
Bills Payable Account Source
From Payment Document Yes
From Supplier Site No

Automatic Offset Method

None Yes
Balancing
Account
Discount Method
System Account Yes
Prorate Expense
Prorate Tax
Interest
System Account Yes
Prorate Across Invoices
Prepayment Account
From Supplier Site Yes
From Purchase Order

19. Define Special Calendars:

Setup > Calendar > Special Calendar

Description: Use the Special Calendar window to define periods that Payables uses for automatic
withholding tax, recurring invoices, payment terms, and for the Key Indicators Report.

The periods defined in the Special Calendar window are completely separate from the periods defined in the
Accounting Calendar window for AP Accounting Periods.

Note: Special calendar will be defined the same as GL Calendar.

20. Define Suppliers:

Suppliers > Entry

Description: Four Oracle applications use the Suppliers window: Payables, Purchasing, Assets, and Property
Manager. If more than one of these products is used, supplier information is shared with the other
product(s). In addition to the supplier name and address, Payables and Purchasing require you to enter
additional information about the supplier. Oracle Assets and Property Manager require no additional
information. However, for any product, you can record a variety of other supplier information in the many
optional fields.

21. Define Invoice Hold and Release Names:

Setup > Invoice > Hold and Release Names

Description: Use the Invoice Hold and Release Names window to define the names used to manually hold
or release invoices. Hold names can be defined and assigned to an invoice during entry to place the invoice
on hold. For example, Needs Manager Approval You can also define release names that you use in the
Invoice Holds window or Invoice Actions window to remove the holds you apply to invoices. For
example,Manager Approved You cannot pay an invoice that has a hold applied to it. You can also determine
whether to allow accounting entry creation for the hold names defined. If you assign to an invoice a hold
name that does not allow accounting, then you cannot create accounting entries for the invoice until you
remove the hold.

22. Define Payment Formats:

Setup > Payments > Payment Administrator > Payment Administrator

23. Define Payment Setup:

Setup>Payments>Payment Administrator>Payment Methods

Define payment methods, rules for their use on documents to be paid, and validations for documents. A funds disbursement
payment method is a medium by which the first party payer, or deploying 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.

Setup>Payments>Payment Administrator>Payment Method defaulting rules

Defaulting rules determine when payment methods should be defaulted on documents. The Payment Method will default when all
values are met across conditions and any values are met within a condition.

24. Define and Assign Document Sequence(Switch Responsibility to System

Administrator):

Application> Sequential Numbering > Define

Description: Create a document sequence to uniquely number each document generated by an Oracle
application. In General Ledger, you can use document sequences to number journal entries, enabling you to
account for every journal entry.

Attention: Once you define a document sequence, you can change the Effective to date and message
notification as long as the document sequence is not assigned. You cannot change a document sequence
that is assigned.

25. Define Aging Periods:

Setup > Calendar> Aging periods

Description: Use the Aging Periods window to define time periods for the Invoice Aging Report. The Invoice Aging Report provides
information about invoice payments due during four periods you specify. Payables displays the invoice information in four columns.
Each column corresponds to one period. When you submit the Invoice Aging Report, you select the type of aging periods to use for
the report.

26. Open AP Accounting Periods:

Accounting > Control Payables Periods

Description: You enter and account for transactions in open accounting periods. The period statuses
available in Payables are Never Opened, Future, Open, Closed, and Permanently Closed. When you first
define a period, Payables assigns a status of Never Opened to the period. Payable does not allow transaction
processing in a period that has never been opened. After you change the status to Future or Open you
cannot change it back to Never Opened. Your accounts payable periods are separate from your general
ledger periods. For example, you can close your JAN period in Payables before you close your JAN period in
General Ledger.