Invoice Matching - Frequently Asked Questions

How Can I Find Out Which Invoices Are Matched To A Purchase Order?

A: In Payables, run the Matching Detail Report from Other > Request > Run.
This report will show you detail of how an invoice, purchase order, or receipt was matched. This report is especially helpful when an invoice is on hold and you are trying determine why the hold was placed.

What Reports Are Available To Check If A Credit Memo Is Matched To An Invoice?

A: In Payables, run the Credit Memo Matching Report from Other > Request > Run

Why does the Error App-Sqlap-10715 Appear when Attempting to Match an Invoice to a PO?

A: Matching an invoice to a PO for the entire quantity closes the PO for invoicing. If the invoice line is discarded (using the Discard button), reversing the PO match the Match button is again available, so the invoice is matched again to the same PO for a different quantity. At that time, the following message occurs: APP-SQLAP-10715: This purchase order line is closed for invoicing. You may want to review the purchase order before continuing with this match.
In R12, when we discard the line, the status is updated only at validation time. Similarly, we update the quantity billed and amount billed for PO's when we match or reverse, but the status is affected ONLY when we validate the invoice. So, after pressing the Discard button, validate the invoice before proceeding with any other actions on the invoice.  See Doc ID 456370.1 and Bug 5927520 for more information.

Why Can An Invoice Be Matched To A PO Without A Receipt Being Needed?

A: If the match option on PO shipment is set to Purchase Order then the invoice can be matched directly to the PO. However, if the PO is setup with 3-way matching, then after invoice validation, if a tolerance is defined then a QTY REC hold will be placed on the invoice which will need a receipt to be entered in order for the hold to be released. See Doc ID 433545.1 for more information.

Is there a maximum number of receipts that should be matched to one invoice?

A: There is no restriction about the receipt match to invoice, however, if you match to too many receipts, there will be performance issue when you matching or invalidating so this is not encouraged.

Why Does The PO Number Disappear From The Invoice Header After Matching To A PO?

A: When you are using the match button you never know how many times to how many PO's or receipts users are going to match the invoice to, hence, we do not store the PO number at the header level. See Doc ID 738788.1 for more information.

When Entering An Invoice, The Match Button Becomes Disabled When The Line Item Is Selected. Users Are Unable To Match An Invoice To A Purchase Order Or Receipt Without This Option Enabled. Is This correct?

A: This is standard functionality but once users are done adding/updating in the Lines tab, if the General Tab is selected again, the Match button will be available.

When Matching A PO To An Invoice, The Match Basis Is Not As Expected. How Does This Field Relate To The PO Line Type?

A: Match Basis will be either Quantity or Amount. The value of this field is based on the value basis of the purchase order line's type. See Doc ID 428303.1 for more information.

How Do You Match An Invoice To A PO With Two Lines, One With Match Level Receipt (3-Way), And One With Match Level PO (2-Way)?

A: First match the invoice to the PO setup with match level receipt. Then requery the invoice and match the second line to the PO. See Doc ID 181736.1 for more information.

Why does PO Match Comes Over as Exclusive Tax Lines?

A: In PO, taxes are always exclusive as per the PO application/product design. So in AP, an invoice matched to a PO would also calculate taxes as exclusive taxes. Please see Bug 6748767 R12: APXINWKB - JAPAN INCLUSIVE TAX, PO MATCH COMES OVER AS EXCLUSIVE TAX LINES for details. See Doc ID 549988.1 for more information.

Why Can Users Not Drilldown To A PO From The Invoice During Matching Without Encountering A 'Function Not Available For This Responsibility' Message?

A: This is due to incorrect menu setup. The submenu AP_PO_VIEW_PURCHASE_ORDERS_GUI needs to be added to the menu for the responsibility used to perform the match. See Doc ID 1350427.1 for more information.

Does The Purchase Order Number Get Populated On Freight, Miscellaneous And Tax Lines When Using The Allocations Window?

A: The purchase order number will not get populated on freight, miscellaneous and nonrecoverable tax lines. PO information is populated for recoverable tax lines.

Why Does Matching An Invoice To PO Default The Accrual Account To The Invoice Distributions?

A: If Accrue on Receipt is selected (checked) on the shipment line to which the invoice is matched, then the functionality is to default the PO accrual account on the invoice distributions. The PO Charge Account will default to the invoice distributions only if Accrue on Receipt is not checked. This is intended functionality.

After Matching An Invoice To A PO, The Distribution Shows As The PO Charge Account But We Were Expecting To See The Accrual Account Displayed. What Happened?

A: If the Accrue on Receipt option is set to Yes for the shipment, then the Accrual Account will be used on the Invoice Distribution. Shipments for inventory items will always be set to Accrue on Receipt. There is no way to change that. In other words the PO matched distributions for inventory items will always have the PO Accrual account as the Distribution account. Shipments for Expense items can be set to Accrue at Period End. In that case the Charge account defined on the PO distribution will be used as the distribution account. The system works as designed.

How Do I Remove A Final Matching Hold, So I Can Pay The Invoice?

A: This hold is in effect because the invoice was matched to a PO shipment that has a status of Final Closed. In 11.5.10 and above, there is no way to manually remove the hold, reverse distributions or cancel the invoice. Please see Doc ID 1447955.1 for more details.

What Do The Codes For The Final Match Flag Mean?

A: After you match an invoice to a purchase order, you can look at the AP_INVOICE_DISTRIBUTIONS_ALL table and observe different codes in the FINAL_MATCH_FLAG column. The FINAL_MATCH_FLAG has the following quickcodes:

1. N - No. The PO shipment line has not been matched.
2. Y - Yes. The PO shipment line has been matched, and one of the invoices for this PO has been final matched. When a PO is final matched to an invoice, all other invoices matched to that PO are updated, too. So, you cannot tell from this flag, which invoice was final matched.
3. D - Done. The PO shipment line is closed. You cannot invoice this distribution line.

What Does Final Match Do?

A: When you final match an invoice to a PO, you can never match another invoice to that PO. The PO lines that have been final matched are permanently closed. In 11.5.10 and above, invoices matched to a Finally Closed PO cannot be updated or canceled. Please see Doc ID 1447955.1 for help processing invoices with final match holds.

Why are Matched, Project Related Invoice Incorrectly Placed on Dist Variance Hold?

A: This was addressed via Bug 6682104 UNABLE TO VALIDATE PROJECT RELATED INVOICES BECAUSE OF UNCLEAR and fixed in the following versions:

apiindib.pls 120.59.12000000.5
apinlinb.pls 120.56.12000000.6
APXINWKB.fmb 120.496.12000000.113
The fix is included in Patch 6887291:R12.AP.A. Alternately apply the latest RUP patch identified in Doc ID 423541.1. See Doc ID 556663.1 for more information and the recommended solution.

How Does Descriptive Flexfield Information From The PO Line Get To AP During Invoice Matching?

A: Enable the Transfer PO Descriptive Flexfield Information Payables Option. With this enabled, descriptive flexfield information will automatically transfer from the purchase order distribution to the invoice distribution when match an invoice to a purchase order is done. The flexfield structure for purchase order distributions and invoice distributions should be same. Note, for ERS invoices, PO will always populate the flexfield information in the AP Invoice Interface tables, so AP will always import these value irrespective of this setup.

How Does The RCV_TRANSACTION_ID Column Get Populated In The AP_INVOICE_DISTRIBUTIONS_ALL Table?

A: The RCV_TRANSACTION_ID column is only populated when the Invoice Match Option is set to Receipt on the PO Shipment line.

It Is Possible To Match A Purchase Order To An Invoice Even If Receiving Date Is Earlier Than Invoicing Date. In Practice, It Is Illogical That You Pay Before Receiving. Does Oracle Allow Us To HOLD Invoices In Which 'INVOICING DATE' Is Earlier Than 'RECEIVING DATE'?

A: There is no such Standard seeded hold for this. If you want to make a hold on this case, you have to create and apply manual holds. See Doc ID 1427975.1 for more information.

Why Do I Get An Invoice Price Variance (IPV) Line When I Match An Invoice To A PO With Nonrecoverable Tax?

A: Nonrecoverable taxes are considered part of the "landed" cost of the items purchased when the non recoverable tax is not already included in the purchase order. See Doc ID 281505.1 for more information.

Unable To Match To A Specific Distribution On A Release. How Can This Be Fixed?

A: Enable the Allow Distribution Level Matching Payables Option, if you want to allow matching to purchase order distributions. If you enable this option, you can match an invoice to one or more purchase order distributions. If you do not enable this option, Payables only allows you to match an invoice to a purchase order shipment.

Why does Invoice Match to PO Error with ORA-24347 WARNING OF A NULL COLUMN IN AN AGGREGATE FUNCTION?

A: The application is trying to covert quick_po_number to a number. Bug 6637551 was logged for this issue and it has been confirmed fixed in patch 6641690. The readme for this patch will not mention this issue directly. However, this is the patch that Development indicated will fix this bug. Apply the latest Rup patch identified in Doc ID 423541.1. See Doc ID 473239.1 for more information.

Why does a PO Matched Invoice Status Change to 'Needs Revalidation'?

A: This issue was reported as Bug 6874994 R12 DISCARD NEVER VALIDATED INVOICE LINE - INV STATUS SHOWS NEEDS and fixed in 12.0 patch/115/sql/apinvutb.pls 120.44.12000000.7 or higher. Apply the latest Rup patch identified in Doc ID 423541.1. See Doc ID 557694.1 for more information.

Why does a PO Matched Invoice w/Invalid CCID Error with ORA-1400 in DIST_CODE_COMBINATION_ID?

A: This was reported as Bug 6887089 ORA-1400 VALIDATING PO MATCHED INVOICE W/INVAILID CCID and deemed to be a code bug which was fixed in zxmwrecdmsrvpubb.pls 120.117.12000000.14 or higher.   The fix is included in Patch 6887089. With this fix, a message indicating the account is invalid will appear. See Doc ID 560763.1 for more information.

Purchasing Encumbrances Are Not Reversed By Invoice Matching. Why Is This?

A: If PO Encumbrance Type and Invoice Encumbrance Type are the same, AP will encumber only for variances. Only when the Accounting Entries have been created for AP, would the encumbrance be relieved. Once the 'Create Accounting Entries' process is run, encumbrance is relieved. This is the standard functionality and as per design.

Why is Encumbrance Wrong after Matching, Reversing and Matching to PO again?

A: This is due to Bug 6009101 ENCUMBERED AMOUNT ON PO DISTRIBUTIONS IS INCORRECT. Code changes needed to be made to disallow the cancellation or discard of line or reversal of distribution of the invoice, if the purchase order is in an unapproved or unreserved state. This bug is fixed in the following versions:

APXINWKB.fmb 120.496.12000000.26
apicancb.pls-120.28.12000000.5
apilnutb.pls-120.28.12000000.2
ap12amg.ldt120.38.12000000.3
Apply the latest Rup patch identified in Doc ID 423541.1. See Doc ID 467436.1 for more information.

There Are Differences Between The PO And Invoice Billed/Received/Invoiced Quantities. They Should Have The Same Values If Viewed In Payables Or Purchasing. What Could Be The Problem?

A: This is a classic data corruption issue. Run the MasterGDF diagnostic Doc ID 1360390.1 for your invoice to determine if you are experiencing any corruption for that invoice and find the solution for your specific situation.

User Discards Invoice Lines On PO Matched Invoice And Cancels The Invoice, However, The PO Still Shows An Amount Billed. This Means The PO Cannot Be Cancelled Due To Mismatch Between The AP And PO Tables. Why Is This Happening?

A: This is a data corruption issue. Run the MasterGDF diagnostic Doc ID 1360390.1 for your invoice to determine if you are experiencing any corruption for that invoice and find the solution for your specific situation.

Unable To Validate Matched Invoice And Unable To Cancel Invoice. How Can This Invoice Be Processed?

A: The chances are high that this specific invoice has some data corruption. Run the MasterGDF diagnostic Doc ID 1360390.1 for your invoice to determine if you are experiencing any corruption for that invoice and find the solution for your specific situation.

Invoice That Was Matched To Receipt, Discarded And Rematched Has Doubled Matching Amounts. Unable To Cancel The Invoice And Line Cannot Be Discarded As This Would Result In Negative Quantities On The PO. What Is The Problem?

A: This is a data corruption issue. Run the MasterGDF diagnostic Doc ID 1360390.1 for your invoice to determine if you are experiencing any corruption for that invoice and find the solution for your specific situation.

Why does the Quickmatch of Invoice to Receipt Error with APP-SQLAP-10000 ORA-6502 PL/SQL Numeric or Value?

A: Lines and Distributions are not created. This was reported as Bug 5929800 ADS120.GA:FIN:QUICK MATCH BY RECEIPT FAILS AND CAUSES FORMS ERROR and was fixed in 12.0 patch/115/sql/apmatchb.pls-120.54.12000000.2 or higher. Apply the latest Rup patch identified in Doc ID 423541.1. See Doc ID 467106.1 for more information.

Attempting To Match To A PO That Was Previously Matched And Unmatched, Incorrectly Shows Negative Value For Billed Quantity. What Is The Problem?

A: This is a data corruption issue. Run the MasterGDF diagnostic Doc ID 1360390.1 for your invoice to determine if you are experiencing any corruption for that invoice and find the solution for your specific situation.

Why does the Asset_Tracking_Flag Remain 'N' for PO Matched Invoice Lines?

A: For a PO matched invoice, if the PO has the accrue on receipt checked and the PO charge account is asset type, then after matching, the distribution line created has assets_tracking_flag set to 'N' (instead of assets_tracking_flag set to 'Y').

This was logged as Bug 6014884 ASSET_TRACKING_FLAG NOT SET IN INVOICE DISTRIBUTION LINES AS EXPECTED and fixed in 12.0 patch/115/sql/apmatchb.pls-120.54.12000000.3 or higher.
Apply the latest Rup patch identified in Doc ID 423541.1. See Doc ID 467442.1 for more information.

Why does Receipt Matched or ERS Invoices have the assets_tracking_flag Set to N?

A: Receipt matched invoices and ERS created invoices do not have the assets_tracking_flag populated to Yes, when accrue on receipt and charge account is set up as an asset account. This was reported as Bug 6683010 ASSET_TRACKING_FLAG NOT SET FOR RECEIPT MATCH AND ERS INVOICES and was fixed in 12.0 patch/115/sql/aprcvmtb.pls 120.59.12000000.2 or higher.  Development has created one-off patch 6683010 for this bug. Please see Doc ID 548975.1 for more information.

Create Adjusting Documents (APXCADIP) Program Is Not Creating PPA Invoices When The PO# Parameter Is Not Provided. There Are Four Parameters: PO#, Supplier, Supplier Site And Resubmit Interface Import And None Of These Are Mandatory Yet The Program Does Not Create The Invoice For The Standard PO That References The Global Blanket Purchase Agreements (GBPA) That Got Updated If The PO# Is Not Entered. Why Is This?

A: The Purchase Order for which the price is to be adjusted must be specified so that the application knows which PO should be adjusted. An ER was logged to allow a global Blanket PO agreement number to be entered as a parameter so that all POs linked to this would be updated. See Doc ID 1378388.1 for more information.

Why does Matching a Credit Memo to a PO Matched Invoice Error with FRM-40212?

A: An incorrect match option is used.  Bug 6674082 R12 CAN'T MATCH CREDIT MEMO TO PO MATCHED INVOICE USING CORRECTION BUTTON.  To correct a PO Matched Invoice Line, use the Match Option 'PO' and hit 'Correct' button. To correct an unmatched Invoice Line, use the Match Option 'Invoice' and hit the 'Correct' button. See Note.471725.1 for more information.

Is It Possible To Enter A Different Tax Classification Code For The Return Tax Code During A Price Correction?

A: No different taxes in the original transaction and price correction is not feasible because a price correction will alter the item price on the original invoice, without changing the total quantity billed. Accordingly, the matching portion of tax (either positive or negative) needs to be the same tax as on the original invoice. If you want to rematch the item with different price and tax, you will need to discard the originally matched item line, so its tax will be reversed, and rematch the shipment, this time with the correct price and tax.


Automatic Debit Memo Creation Failed When Creating a RTS Transaction. What Could Be Wrong?

A: For an Automatic Debit Memo to be created in AP, the following must be true:

The supplier site has to be marked to allow RTS transactions.
There must be an original invoice already in AP for the item being returned.
The PO and the original Invoice must be to the same Supplier Site.
The Supplier Site must be marked as both a Pay Site and a Purchasing Site.
The return quantity cannot cause the quantity invoiced to go negative.
The return quantity must be equal to or less than the quantity invoiced.
The Create Debit Memo checkbox must also be turned on in the Receipt form.
The return must be to the Supplier, and not to Receiving.

If the debit memo is not created automatically, you should create the debit memo manually in the Payables application.

Debit Memo Created For A RTS Transaction Has Terms From The Supplier Site. Is This Correct?

A: The payment terms for a supplier site default to the invoices you enter for the site except in the following circumstances:

You enter a PO Default or QuickMatch invoice in the Invoice Workbench, in which case the terms default from the purchase order.
You import an invoice record that has payment terms specified on the record, or the import process can derive terms from purchase order matching. You can override the default payment terms on any invoice.
So, the debit memo is correctly picking up payment term from the supplier site.

Create Debit Memo From RTS Transaction Is Not Created When The RCV: Processing Mode Profile Option Is Set To Online. Why?

A: When the system profile option, RCV: Processing Mode is set to Online, no Debit Memo is created in Payables. Set the option to Immediate so the debit memo will be generated in Payables.

Create Debit Memo From RTS Errors AP_CANNOT_ASSIGN_DOC_SEQ. What Is The Problem?

A: Ensure that the seeded Document Category is the one assigned to the set of books for successful creation of automatic / RTS Debit memos

Price Hold Not Released When Entering Credit Memo. How Can This Be Released?

A: Use one of the following methods to resolve this issue:

Match the credit memo to the PO with price correction enabled and the related invoice selected.
Match the credit memo to the invoice which is matched to the PO in question and validate both the invoice and the credit memo.

Why Are Users Unable to Pay RTS Debit Memo?

A: Bug 5583430 RTS DEBIT MEMO BEEN CREATED WITH PAY ALONE FLAG. The bug is fixed in apcrtdmb.pls version 120.14.12000000.3 or higher. Apply the latest Rup patch identified in Doc ID 423541.1. See Doc ID 466707.1 for more information.

Why does the Invoice Validation Process Error ORA-1403 in Procedure ZX_TRD_INTERNAL_SERVICES_PVT.get_variance_related_columns for Some Operating Units?

A: Bug 6967515 INV VALIDATION FOR APA RUNS IN ERROR ORA-1403.  A root cause has not been identified. The problem invoices were successfully validated online. See Doc ID 565877.1 for more information and the recommended solution.

Why does a User-Defined Exception Error Occur when Attempting to Run Invoice Validation?

A: On PO matched invoices, if recoverability is 100% then zero (0) amount Non recoverable distribution does not get copied to invoice distributions. This causes the invoice validation to fail. Specifically, because of condition "zd.rec_nrec_rate = 100" in CURSOR insert_tax_dist of function Return_Tax_Distributions of package body AP_ETAX_UTILITY_PKG. This occurred after upgrading from 11i to R12. This was logged as Bug 6906867 INVOICE VALIDATION FOR APA AND FINOTECH RUNNING IN ERROR. See Doc ID 561418.1 for more information and the recommended solution.



Knowledge source: Oralce Metalink.

Oracle Accounts Payable Interview Questions In R12

Accounts Payable Interview Questions In R12

1.Explain about Accounts Payable.
Ans)The Accounts Payable application component records and manages accounting data for all
vendors. It is also an integral part of the purchasing system: Deliveries and invoices are
managed according to vendors. The system automatically triggers postings in response to the
operative transactions. In the same way, the system supplies the Cash Management application
component with figures from invoices in order to optimize liquidity planning.

2.What is the meaning of invoice?
Ans)An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms.

In the rental industry, an invoice must include a specific reference to the duration of the time being billed, so rather than quantity, price and discount the invoicing amount is based on quantity, price, discount and duration. Generally speaking each line of a rental invoice will refer to the actual hours, days, weeks, months etc being billed.

3) Can you give a 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 fulfill
1. Invoice should be match with PO
2. Invoice should has all the supporting documents such as PO copy, Delivery note duly signed by receiver (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.

4)What are the journals entries in Procure to Pay Cycle.

Ans) 

Description                                                                             DR                                  CR

A) Po creation                                                                    No Entry                          No Entry

B)  While Receiving the goods                                       Material Receiving            Ap Accurval 

C) While Inspection                                                        No Entry                            No Entry 

D) While Trans ford the good to Inventory               Inv Org Material              Material Receiving

                                                                                     Purchase price Varience

F) While Po Is Matching to Invoices                         Ap Accurval                        Liability

G) While Making the Payment                                 Liability                               Cash Clearing 

 H) Ofter Reconciliation                                           Cash Clearing                     Cash

 I) Final Entry                                                            Inv Org Material                Cash

5)What is the difference between EFT & Wire?

Ans)EFT and WIRE are the most popular form of electronic payment method. EFT stands for electronic fund transfer and it is one of the fastest mode of electronic payment after WIRE. EFT is a batch oriented mechanism for transfering funds from one bank to another because of which clearing & settlement takes around 2 to 4 days. On the other hand, WIRE is a RTGS i.e. real time gross settlement system of making the fund transfer on real time and gross basis. Clearing and settlement happens on the same day. WIRE is more expensive and faster than EFT.  

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.

7)What is the meaning of GRN?
Ans) GOODS RECEIPT NOTE MEANS IT PROVES THAT MATERIAL IS DELIVERED AT STORES DEPARTMENT. GRN IS THE BASE DOCUMENT AND IMPORTANT DOCUMENTS FOR PROOF OF RECEIPT OF MATERIAL AT WARE HOUSE.THIS CAN BE PREPARED BY STORES DEPARTMENT AND APPROVED BY PLANT HEAD. GRN CONTAINS ORDERED QTY,RECEIVED QTY AND ACCEPTED QTY. BILL WILL BE PASSED BASED THE GRN NOTE. ONCE THE GRN IS PREPARED AUTOMATICALLY INVENTORY WILL BE UPDATED AND ACCORDINGLY PAYMENT WILL BE RELEASED TO THE VENDOR.

GRN contains the following details.

1.Ordered quantity .
2.Received Quantity.
3.Defective quantity in received quantity .
4.Quality standards details.

8) How does the payment mechanism work?

Ans) The open items of an account can only be cleared once you post an identical offsetting amount to the account. In other words, the balance of the items assigned to each other must equal zero.During clearing, the system enters a clearing document number and the clearing date in these items. In this way, invoices in a vendor account are indicated as paid, and items in a bank clearing account are indicated as cleared.

You generally use the payment program to clear invoices. Manual clearing of open items is therefore not usually necessary. However, you will sometimes have to clear items manually if, for example, you receive a refund from your vendor or you have set up a direct debit procedure.

9) Difference between interface tables and base tables?
Ans)   The difference between the interface and base tables is as below

Interface table: is the table where the data gets validated before data get posted to the base tables. There are many interfaces which are seeded with Oracle. You can consider as the entry point of the data, and the interface checks the sanity of data.

Base tables: As told earlier once the data is validated will get updated in the base tables, and is considered as the data which is in the base table is accurate and used in many ways. (Reporting..etc..)


The base tables in AP are as follows:

1) ap_invoices_all
2) ap_invoice_payments_all
3) ap_invoice_distibutions_All
4) ap_payment_schdules
5) ap_payment_dustributions_all
6) ap_checks_all
7) ap_accounting_events_all
8) ap_bank_accounts_all
9) ap_bank_accounts_uses_all
  

10) What is the 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.

11) How do u Transfer from AP to GL?
Ans)“Payables transfer to GL program” is used to transfer from AP to GL.

12) How many types of invoices are there in AP.
Ans) 
1. Standarad invoice 
2. Debit Memo
3. Credit Memo
4. Mixed Invoice
5. Retain age Invoice
6. Transportation invoice
7. Prepayment invoice
8. Expenses Report Invoice
9. Payment Request Invoice
10. Po default

13) How many types of purchase order types/agreements are there?
 
A) Standard Purchase Order: You generally create standard purchase orders for one-time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known

B) Planned PO : A planned purchase order is a long-term agreement committing to buy it
items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities and estimated cost.
EX: Buying goods for Christmas from a specific dealer.

C) Contract PO : You create contract purchase agreement with your supplier to agree on specific terms and conditions without indicating the goods and services that you will be purchasing i.e. for $ amount you must supply this much quantity. You can later issue standard PO referencing your contracts and you can encumber these purchase orders if you use encumbrance accounting.

D) Blanket PO : You create blanket purchase agreements when you know the detail of goods or services you plan to buy from a specific supplier in a period , but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them.
A Blanket Purchase Agreement is a sort of contract between the you and ur supplier about the price at which you will purchase the items from the supplier in future. Here you enter the price of the item not the quantity of the items. When you create the release you enter the quantity of the items. The price is not updatable in the release. The quantity * price makes the Released Amount. Now suppose your contract with your supplier is such that you can only purchase the items worth a fixed amount against the contract.

14.Payment Method:

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. 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.You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file during payment batch creation. If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.

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.

Clearing:

Clearing Payment for invoices transferred from another entity within the company without creating a payment document.Payment method you use to account for intercompany expenses when you do not actually disburse funds through banks. You do not generate a payment document with the Clearing payment method. When you enter the invoice, you enter Clearing for the payment method.You can record a Clearing payment using a Manual type payment only. 

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 template.

Accounting Entries

It is confusing for most of the beginners or new users to understand how an Oracle Application is performing the accounting on various events. Though after going through the application they get use to it. The option of “Create Accounting” and “View Accounting” helps a lot.

Here are some of the events, its explanation and its accounting performed by Oracle Payables, technically, the accounting engine is moved to Oracle Subledger Accounting (SLA). But the accounting is still viewed in Payables.

Anyways,

STANDARD INVOICE:

	DEBIT	CREDIT
Expense / Item Expense / Misc. Expense	100
Supplier / Liability		100
PAYMENT:
Supplier / Liability	100
Bank / Cash / Cash Clearing		100
TOTAL	200	200

How is liability account code combination credited in the above accounting entry?

You see when you define Supplier’s Site, you have to give the liability account code combination on that particular site. Although the liability account is defaulted from Payables’ Financial Setup, but you can change the account code according to your need. You can even change the liability account code combination on the Invoice Workbench by enabling the Column from Folders option.

When you create a standard invoice, you have to give the Supplier Master name and a Site, from this site, the application picks the liability account. For expense account code combination you can either use a distribution set or manually enter it.

Now comes the payment, the liability account is fetched from the supplier whose invoice is being paid, the cash clearing or cash account is fetched from the bank you select during the payment. This account is defined during the Bank Account Setup.

PREPAYMENTS / ADVANCES:

	DEBIT	CREDIT
Prepaid Expense / Advance Paid	70
Supplier / Liability		70
PAYMENT:
Supplier / Liability	70
Bank / Cash / Cash Clearing		70
STANDARD INVOICE:
Expense / Item Expense / Misc. Expense	100
Supplier / Liability		100
PREPAYMENT APPLIED TO STANDARD INVOICE:
Supplier / Liability	70
Prepaid Expense / Advance Paid		70
TOTAL	310	310

The idea of prepayment or advance is that you pay the supplier before receiving its goods or services. Now what if you pay the supplier but due to some reason or dispute you cancel the agreement or contract before receiving the supplies or service from that supplier? The supplier will have to pay back, now if you are receiving the cash it’s more of an asset. So the prepayment’s accounting is doing the same. When you create a prepayment invoice, the application automatically selects the Assets account given on that particular supplier’s site. And when you apply that prepaid invoice on the standard or actual invoice, the application clears the asset account as well as the liability.

In the above scenario of Prepayment, the total liability was PKR. 100, but the prepayment or the advance was paid of PKR. 70. When the Prepayment was applied to the Standard Invoice, the liability on Standard Invoice was decreased by PKR. 70. Still the remaining amount of PKR. 30 has to be paid and it will be a Standard Payment.

INVOICES with “TRACK AS ASSETS”:

	DEBIT	CREDIT
Asset Clearing	100
Supplier / Liability		100
INVOICE TRANSFERRED TO ORACLE ASSETS:
Asset	100
Asset Clearing		100
TOTAL	100	100

“Track as Asset” is a functionality for moving the items from Oracle Payables to Oracle Assets. It is a check box on the Invoice Line TAB and can be enabled on Distribution Line using the Folder View option. When you check this box and run the “Mass Addition Create Report” from Payables, the items on invoice line or distribution line moves to Oracle Assets. You can give the item description on invoice line so that you don’t have to give it when the items are transferred to Oracle Assets.

Now, how does the system identifies that on which account it should move the items to Assets?

It is because the same Asset Clearing account is given in the Assets Setups.

INVOICE with WITHHOLDING TAX (say 6%):

	DEBIT	CREDIT
Expense / Item Expense / Misc. Expense	100
Supplier / Liability		100
Payment with Withholding Tax :
Supplier / Liability	100
Bank / Cash / Cash Clearing		94
Withhodling Tax		6
WITHHOLDING TAX  INVOICE (Usually Auto Generated)
WHT Expense	6
WHT Payables (NBP or SBP)		6
TOTAL	106	106

The above scenario is of an invoice with a withholding (WHT).

In above accounting entry the WHT payables or Liability account is selected from the supplier defined as a Tax Authority. The WHT expense is picked from the WHT setup.

This is some basic accounting entries made by Oracle Payables.

Oracle Accounting Entries in AP:

This document describes the accounting entries created when we enter Invoices in Payables using the Accrual method of accounting.

Invoice:

When we enter a standard invoice through the Invoices window, payables creates the following journal entry:

DR Item Expense

DR Tax (if charged tax)

DR Fright (if any)

CR Liability

When we pay the Invoice, payable creates the following journal entry:

DR Liability

CR Cash Clearing

CR Tax (if charged tax)

CR Fright (if any)

After reconciliation of payment to the bank statement, journal entries are:

DR Cash Clearing

CR Cash

Credit/Debit memo:

When we enter a Credit Memo or Debit Memo against an Existing Invoice, payables creates the following journal entry:

DR Liability

CR Item Expense

When the Credit/Debit Memo is refunded, payable creates the following journal entry:

DR Cash Clearing

CR Liability

After reconciliation of payment to the bank statement, journal entries are:

CR Cash Clearing

DR Cash

Prepayment:

When we enter a prepayment for a supplier, payable creates the following journal entry:

DR Prepaid Expense

CR Liability

When the Prepayment is paid, payable creates the following journal entry:

DR Liability

CR Cash Clearing

After reconciliation of payment to the bank statement, journal entries are:

DR Cash Clearing

CR Cash

Expense Report:

When an Employee raises an expense through expense Report Window, payable creates following Journal Entries:

DR Item Expense

CR Liability

When the Expense is paid, payable creates the following journal entry:

DR Liability

CR Cash Clearing

After reconciliation of payment to the bank statement, journal entries are:

DR Cash Clearing

CR Cash

Prepayment Accounting entries in Accounts Payables

When Prepayment Invoice is created.

Prepaid Expense A/c----------Dr
Liability A/c--------------------Cr

When Prepayment Invoice is paid.

Liability A/c---------------------Dr
Bank/cash A/c-------------------Cr

When Invoice is raised for Expense

Expense Charge A/c--------------Dr
Liability A/c----------------------Cr

When Prepayment is applied to invoice it reverses the original prepaid invoice accounts creates the following accounts

Liability A/c------------------------Dr
Prepaid Expense A/c--------------Cr

SET UP:

 1)we have to create one special calendar 

2)we have to create one full distribution set 

3)we have to enter payment terms in the recurring invoice window 

4)enter the template no, first invoice amount, special invoice amounts

Mandatory setups for Payables :

The following are the mandatory setups for payables.

1. Define Financial Options.

2. Define Payment terms.

3. Define Payment Methods.

4. Define Payment Formate.

5. Define Pay Group.

6. Define Supplier.

7. Define Banks.

8. Define Distribution Sets (Optional).

1. Define Financial Options.

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. You can define defaults in this window to simplify supplier entry, requisition entry, purchase order entry, invoice entry, and automatic payments. Depending on your 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.

Navigation: Payables --> Setup --> Options --> Financial.

 
 Click on New button.

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:

If you do not also have Oracle Purchasing installed, you do not need to enter defaults in the Supplier- Purchasing region.

 Encumbrance Tab:

If you do not use encumbrance accounting or budgetary control, you do not need to enter defaults in the Encumbrance region.

Tax Tab:


If your enterprise does not need to record a VAT registration number, you don't need to enter defaults in the Tax region.

Human Resources Tab:

If you do not have Oracle Human Resources installed, you are not required to enter defaults in the Human Resources region.

2. Define Payment terms.

We define payment terms that you can assign to an invoice to automatically create scheduled payments when you submit Payables Invoice Validation for the invoice. You can define payment terms to create multiple scheduled payment lines and multiple levels of discounts. You can create an unlimited number of payment terms.


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 based on one of the following:

• a specific day of a month, such as the 15th of the month
• a specific date, for example, March 15, 2002
• a number of days added to your terms date, such as 14 days after the terms date
• a special calendar that specifies a due date for the period that includes the invoice terms date. Only due dates can be based on a special calendar. Discount dates cannot be based on a special calendar.

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.

Navigation: Payables --> Setup --> Invoice --> Payment terms.

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:
• % Due
• Amount

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

• Calendar
• Fixed Date
• Days
• Day of Month, and Months Ahead
5. If you use discount terms, define payment terms lines in the First Discount , Second Discount, and Third Discount tabs. Define your discounts so that the first discount has an earlier discount date than the second and so on. You can realize only one discount on a payment terms line.

Note: You cannot use a special calendar to define discount terms.

Enter one of the following to determine the portion of the invoice to discount on the scheduled payment:

• % Discount
• Amount

In the Discount tabs, enter the discount percent.
Enter one of the following to determine the due date on the scheduled payment line:

• Due Days
• Day of Month, and Months Ahead

Save.

3. Define Payment Method:

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. 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.You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file during payment batch creation. If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.

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.

Clearing:

Clearing Payment for invoices transferred from another entity within the company without creating a payment document.Payment method you use to account for intercompany expenses when you do not actually disburse funds through banks. You do not generate a payment document with the Clearing payment method. When you enter the invoice, you enter Clearing for the payment method.You can record a Clearing payment using a Manual type payment only.


Navigation: Payables --> Setup --> Payment --> Payment Administrator.

Click on Go To Task.

 Click on Create button.

Enter the Payment Method name and code and then click on Next.

 
 Select the respective responsibilities which we want shown this payment method in these responsibilities.

Click on Next, Next, Finsh.

Payment Method In R12

Payment Method:


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. 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.You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file during payment batch creation. If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank.For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.

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.

Clearing:

Clearing Payment for invoices transferred from another entity within the company without creating a payment document.Payment method you use to account for intercompany expenses when you do not actually disburse funds through banks. You do not generate a payment document with the Clearing payment method. When you enter the invoice, you enter Clearing for the payment method.You can record a Clearing payment using a Manual type payment only.

Navigation: Payable Manager --> Setup --> Payment --> Payment Administrator.

Click on Go To Task.

 Click on Create button.

Enter the Payment Method name and code and then click on Next.

 Select the respective responsibilities which we want shown this payment method in these responsibilities.

Click on Next, Next, Finsh.