Understanding Oracle Financials ( AP, PO ) modules

Introduction

P2P Cycle Flow : ( procure 2 pay )

This is called as Procure to Pay Cycle. As the name infers , it starts with procurement of an item and ends after paying for the procured item.

P2P Cycle Process Flow.

Requisition àRFQ * à QA * à Purchase Order àReceipt àInvoice àPayment àTransfer to GL àBank reconciliation

RFQ * -- Request for Quotation

QA * -- Quote Analysis

Requisition Types and description

i. Internal Requisition :-

In Same Company , shifting of items from one location to another / inventory to another

ii. Purchase Requisitions:-

To procure items from external vendors , Buying an item

Requisition Tables :

i. PO_REQUISITION_HEADERS_ALL

ii. PO_REQUISITION_LINES_ALL

iii. PO_REQ_DISTRIBUTIONS_ALL

Purchase Order Types and Description :-

i. Standard Purchase Order : One time agreement for purchase of Goods & Services

ii. Planned Purchase Order : Long term agreement for purchase of goods

iii. Contract Purchase Order : Delivery dates of goods and services ,contract are know but not on Goods & Services

iv. Blanket Purchase Order : Good & Services are known but not on Delivery Schedule

Purchase Order Matching : PO Matching

i. 2 Way : Purchase Order matched with Invoice Quantity

ii. 3 Way : PO with Invoice Quantity and Receipt

iii. 4 Way : PO with Invoice Quantity ,Receipt and Goods inspection

Purchase Order Tables

i. PO_HEADERS_ALL

ii. PO_LINES_ALL

iii. PO_DISTRIBUTIONS_ALL

Receipt Creation

Navigation: Receiving – Receipt

Enter the PO number and FIND . Select Lines and Enter Line Details to Receive a PO. Select Header and SAVE it.

Receipt Tables

i. RCV_SHIPMENT_HEADERS

ii. RCV_SHIPMENT_LINES

Invoice Creation in Payables

Navigation: Payables (USA) – Invoice – Enter – Invoice

Match Button in Payables Window

Used to match the Invoice with either Purchase Order or Receipt.

Validate the Invoice

Select Action Button in Invoice Window and Select the Validate Checkbox

Create Accounting Entries

Invoice Tables

a. AP_INVOICES_ALL
b. AP_INVOICE_LINES_ALL

c. AP_INVOICE_DISTRIBUTIONS_ALL

Accounting Entries Tables

a. AP_ACCOUNTING_ENENTS_ALL

b. AP_AE_HEADERS_ALL

c. AP_AE_LINES_ALL

. Payment of Invoice

Select Actions Button ,Pay in Full Check Box

Now create Accounting Entries for Payment.

Navigation : Tools Menu – View Accounting

Payment Tables

a. AP_INVOICE_PAYMENTS_ALL

b. AP_PAYMENT_SCHEDULES_ALL

c. AP_CHECKS_ALL

d. AP_CHECK_FORMATS

e. AP_BANK_ACCOUNTS_ALL

f. AP_BANK_BRANCHES

g. AP_TERMS

Transfer to General Ledger

Concurrent Program : Payables Transfer to General Ledger

MOAC :

Multi Organization Access Control

To Enter Invoice for Multiple operating units without switching responsibility , to pay for invoices of multiple operating units in a single Pay Run.

Payables Details

Profile Options

a. MO Security Profile

b. MO Default Operating Unit

c. MO Operating Unit

Hierarchy

a. Site

b. Application

c. Responsibility

d. User

Payables Overview

Payables Flow

Enter Supplier ( supplier and supplier sites ) à Enter / Import Invoice àValidate Invoice àPay Invoice à Create Accounting Entries in Sub ledgers à Transfer to General Ledger

Invoice Entry Types

a. Manual Entry : - Through Quick Invoice Window

b. Import :- Payables Interface Tables : Payables Open Interface Import

c. Automatically Generated: Interest Invoice ,Payment on Receipt window, with holding tax

d. Recurring Invoice : Generating Periodic Invoices

e. Matching : Match an Invoice to PO or Receipt

Payables : Invoice Header – Invoice Lines – Invoice Distributions – Scheduled Payments

Distribution Sets : Used to Automatically enter distributions for an Invoice when you are NOT MATCHING it with a PURCHASE ORDER

Open Interfaces in Payables :

a. Payables Open Interface

b. Payables expense report open interface

c. Payables PCard open Interface

d. Payables Credit Card Open Interface

e. Payables Matching Open Interface

f. Payables Supplier Open Interface

Quick Invoice : Used to enter Standard , Credit Memo invoices

Invoice Types in Account Payables :

i. Standard
ii. Credit Memo
iii. Debit Memo
iv. Pre Payment
v. Mixed
vi. Expense Report
vii.With holding tax
viii. Interest
ix . a few more to come

Aging Reports : An invoice Entered but not validated and or no accounting entries created

What is Conversion ?

Process where existing data from the client's old system is extracted, cleansed, formatted, and installed into a new system.This can be automated or manual process and it’s a one – time process

What is Migration ?

Process where extracting data from client’s existing systems to new systems .

What is Interface ?

These are programs for connection between two systems in order to synchronize the data.

They programs can be Manual, Batch or Real-Time.

Are triggered by an event such as running a concurrent program or can be scheduled to run at a Certain Time.

Interface Tables :

1. AP_INVOICE_INTERFACE

2. AP_INVOICE_LINES_INTERFACE

Base Tables : ( From 11i )

1. AP_INVOICES_ALL
2. AP_INVOICE_DISTRIBUTIONS_ALL

3. AP_PAYMENT_SCHEDULES_ALL

Target Tables in R12

1. AP_INVOICES_ALL
2. AP_INVOICE_LINES_ALL
3. AP_INVOICE_DISTRIBUTIONS_ALL
4. AP_PAYMENT_SCHEDULES_ALL

Conversion Flow Diagram :

Validation on the following before converting the invoices from 11i into target R12 systems.

1. Lookup_code : From table ap_lookup_codes where lookup_type=source
2. Organization_id : From table org_organization_definitions
3. Vendor_id : Vendor information moved into TCA ( AP_suppliers , HZ_party )
4. Vendor_site_code: Moved into TCA
5. Invoice_type : From fnd_lookup_values table
6. Invoice_currency_code : From fnd_currencies table
7. Payment_Method : From fnd_lookup_values where lookup_type ='payment method'
8. Invoice_Paygroup : From fnd_lookup_values where lookup_type =paygroup
9. coa : from gl_ledgers where sob_id = gl_num
10. terms : from AP_terms table
11. gl_period : from gl_period_status table

Concurrent Program for AP Invoice Conversion is Payables Open Interface Import.

Differences in 11i and R12 w.r.t Invoices

Invoice Lines and Approvals

1. In release 11i for AP Invoice we can enter Header and Distributions details , whereas in release 12 the concept of invoice Lines is introduced, which enables better model the paper or electronic business document. Each Invoice line will have its own distributions so an invoice can have (Header, Line & Distribution)

2. New Invoice lines supports the representation of the goods or services as well as tax, freight and other charges as lines with distributions tied to each lines.

3. This enhancement also enables the ability for line level approval using Approval Management Engine and matching between an invoice line and a purchase order shipment pay item or receipt.

4. Approvers of invoice submitted without a Purchase Order can enter accounting details as they approve

Trading Community Architecture:

Before TCA , each organization has a supplier and a customer . It is good enough to track all the expenses until if an customer is also supplier for an organization and similarly a supplier for an organization is also a customer .

Below is the graphical representation.