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Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
Oracle Fusion Applications Accounts Payables
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Oracle Fusion Applications Accounts Payables

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  • Hello, I am .. From Payables Product Management, and in next hour I will be discussing Payables Implementation and Configuration considerations.
  • In this presentation, we will go through the Payables implementation concepts, considerations and best practices.
    We will cover
    Procure-to-Pay Overview and its prerequisite setups
    Key Implementation Considerations around
    Function and Data Security
    Business Units and Shared Service Centers
    In the Invoicing area we will go through
    Integrated Imaging Solution
    Multiple Invoice Entry Methods
    Match Options and Match Approval Levels
    Tolerances and Holds
    Invoice Approval
    Tax Engine and Multiple Accounting Representations using the SLA
    Payment Processing Options
    Payables to Ledger Reconciliation Report
  • Lets go over Procure-to-Pay flow at a high level:
    Starting with Requisition where you identify the requirement and then authorize the purchase request.
    To purchase goods/services, you negotiate and identify the vendor, request and receive the quotation and finally create and approve the purchase orders.
    In logistics module, you receive the shipment notice, receive and inspect the goods and ensure that the received quantity is within the tolerance when compared to PO.
    In Payables, you record the supplier invoices matching them to PO or receipt, approving and finally issuing the payment.
  • Payables Detailed Business Processes (or L2) and Activities (L3)
    Payables detailed business processes fall under Procurement business
    process or L1.
    Under Setup procurement detailed business process, the L3 activity for
    Payables is Define Payables.
    Similarly Manage Invoices detailed business process comprises of Receive
    and Process Invoices, Submit invoices, Approve Invoices, Audit Invoices
    and Record Accounting for Invoices.
    Manage Payments contains Prepare and Record payments and Record accounting
    for payments
    Manage Accounts Payable Balances has Analyze Accounts Payables Balances,
    Manage Accounts payable Disputes, and Close Payables period activities
  • This slide depicts some of the products whose setup is required for Payables functionality
    Starting with Global Human Resources for employees and HR locations, General Ledger for Ledger, currency, calendar etc.
    Subledger accounting to define accounting rules and events, Tax for Payables tax configuration, Projects, Product Item Management for item configuration, Logistics for Receiving Parameters, supplier model for supplier configuration, Purchasing options and others setups in Purchasing.
  • Prerequisite Setups for Payables Setup tasks
    As with all Fusion applications, Payables uses the Functional Setup Manager (FSM) tool to plan, implement and maintain the functionality. Please refer to the TOI on FSM for more details on FSM tool.
    Payables can be configured as part of Financials or Procurement implementation projects that are available out-of-the-box.
    Some of the setup task-lists and tasks preceding the Payables configuration are depicted in this slide.
    Starting with the common application configuration for Financials where users, implementation users, Enterprise structures, ledgers, business units, facilities etc. are setup.
    Followed by common financials configuration for setting up transaction taxes.
    For Invoicing and Payment configuration, suppliers are setup first followed by Payables, Disbursement, Payment connectivity and security, SLA and Cash Management setup.
  • Lets review Payables setup task-lists under Financials implementation project.
    This first screenshot on the left depicts the Financials implementation project with all its setup task lists.
    The screenshot on the right expands on the Invoicing and Payment configuration displaying the task-lists under it.
  • Function and Data Security in Payables
    In Fusion, function security is implemented using Job Roles, Duty Roles and Privileges and the data security using Data Roles
    There are 3 predefined job roles to meet Payables job functions:
    Accounts Payable Specialist, Accounts Payable Supervisor, and Accounts Payable Manager
    Payables job roles are configured such that segregation of duties is maintained for performing supplier management, invoice creation, force approval and payment processing
    For the new business units that are defined in the system, the data roles for those business units need to be generated using seeded data role template
    The predefined job roles and the duties assigned to them can be customized using Oracle Identity Manager (OIM) and Access Provisioning Manager (APM)
    Refer to Oracle Fusion Financials Security Implementation and Configuration Considerations for more details.
  • This slide lists the duties or duty roles that job roles associated with Payables inherit.
    AP specialist has invoice creation and review duties while AP supervisor has invoice creation, processing, payment creation and processing duties.
    AP Manager is primarily responsible for period close in addition to invoice and payment processing duties.
  • Lets discuss business units, business units in Procure-to-Pay flow and shared service centers in next couple of slides.
  • Business Units in Fusion
    Business Unit is a unit of an enterprise that performs one or many business
    functions, can process transactions on behalf of other legal entities. Business unit
    producing a financial transaction must be assigned to a primary
    ledger.
    Refer to Oracle Fusion Financial Enterprise Structures Implementation and Configuration Considerations training for more details.
  • Lets discuss Shared Service Centers
    Shared service centers are used to reduce cost and enforce company policies and procedures and can be modeled using business units in two ways:
    Service Provider Model
    BU Data Security
    In Service Provider Model , you define relationships between business units for a specific business function, identifying one business unit in the relationship as a service provider and others as its clients
    Shared service centers can also be implemented using business unit data security where shared service center personnel are given data access to process transactions for other business units.
    This is referred to as Multi Org Access Control or MOAC in Oracle EBS
  • This slide depicts the 4 ways in which Procure-to-Pay can be implemented for various business units in the flow:
    Decentralized: where individual business units perform business functions like requisitioning, sourcing, procurement and payables on their own
    Shared Services: where individual requisitioning business units subscribe to one business unit for sourcing and procurement and payables business functions. If a business unit pays on behalf of a different requisitioning business unit, intercompany transactions are created for financial reconciliation.
    Central Sourcing is where a business unit is a shared service center for sourcing while Requisitioning, Procurement, and Payables is done by individual BUs
    Finally, in Separate Procurement and Invoicing Service Providers, Sourcing is a shared service center, and another BU is processing orders and paying on behalf of Requisitioning BU
  • Best Practices for Shared Service Centers
    In Fusion-V1, the procurement business function can be centralized. This allows the procurement business unit to
    negotiate supplier terms on behalf of all the client business units and allows the client business units to share the
    supplier sites. The centralized procurement business unit can also process requisitions for multiple requisitioning
    BUs.
    To centralize the Payables business function into a single shared service center, suppliers can be asked to send
    invoices directly to the central location as opposed to Buyers or other locations.
  • Procurement via Subsidiary
    In order to meet legal requirements for trading, businesses are sometimes required to setup subsidiaries in some countries although their primary operations are located elsewhere. Setting up of subsidiaries and trading via those subsidiaries also often allow businesses to take advantage of available tax favorable regimes.
    To facilitate buying via subsidiaries, the purchase order’s Sold-to BU can be different from the Requisitioning BU. In this screenshot on a purchase order, Vision Services is buying goods via subsidiary Vision Germany.
  • In next couple of slides we will talk about the integrated imaging solution that provides a seamless “out-of-the-box” user experience, supporting the entire invoice lifecycle from scanning, recognition, routing, to invoice entry, approval, and payment.
  • Paper invoices are still prevalent in today’s business world, prompting most organizations to implement some form of imaging capability for their Payables department, to help reduce receipt-to-payment cycle and meet audit requirements. This results in implementation of multiple point solutions.
    Lets review some of the challenges in implementing third party solutions and compare them to Oracle’s imaging solution.
    Given the a la carte selection process for current third party solutions, the end result is a disjoint, bolt-on solution footprint that is truly unique to each implementation and that operates in peripheral fashion and cannot leverage native ERP capabilities.
    In contrast, Oracle’s imaging solution is fully integrated “out-of-the-box” that supports the entire lifecycle of invoice processing from scanning, recognition, image routing to invoice entry, approval and payment.
    Third party solutions rely on multiple components from different vendors for scanning, data extraction, storage and workflow and hence require dedicated IT staff for each to set up, integrate and maintain, resulting in higher cost of ownership. Oracle’s integrated solution is installed and maintained by a common provisioning framework, with minimal configuration and setup needed.
    Third party solutions have disparate platforms, certification and release cycles that increases the risk of incompatibility and maintenance overhead. In contrast for Oracle’s imaging solution, all components are certified and supported by Oracle.
  • Lets review the process flow for integrated imaging solution
    Fusion Payables invoice imaging process begins with invoices arriving in the mail room. Imaging specialist(s) preps and sorts them based on parameters such as geography, invoice amount, and due date and scans the invoices using Oracle Document Capture (ODC).
     Images are then sent to a central Oracle Forms Recognition server over a network file share for intelligent data recognition and extraction. Any invoices that fail data extraction or validation are sent to Oracle Forms Recognition Verifier for manual resolution.
    Upon successful data extraction, the invoice images are sent to IPM for storage and routing to accounts payable specialists using BPEL workflows.
     Accounts payable specialists can view the list of scanned images for invoice entry in the Scanned Invoices region of the Invoice workarea. After selecting the invoice image, they proceed with invoice entry using dual monitors where invoice entry UI is displayed on one monitor and the image is displayed on the other. The key invoice header attributes are already pre-populated with the data extracted by OFR thus reducing the invoice entry time and data entry errors.
  • Lets start reviewing the components for integrated imaging solution in detail over next couple of slides.
    Oracle Document Capture or ODC plays the first crucial role in digitizing paper invoices to images to support the automation that is necessary for streamlining invoice processing.
    ODC runs on desktop personal computers connected to scanners and converts paper invoices to industry-standard image formats. It supports most enterprise class scanners and the two leading high-volume document scanning interfaces: ISIS and Kofax Adrenaline/VirtualReScan.
    It is designed for high volume, centralized image capture, where batches of invoices can be scanned at a time. The architecture supports implementation scenarios where companies can centrally scan all invoices by having suppliers send invoices to one location or they can scan documents in field offices using multiple ODC instances.
  • Now lets review some of the implementation considerations and recommendations for ODC.
    For centralized scanning, request suppliers to send invoices to one central location or decentralize ODC at each invoice receipt location
    For centralized scanning in one location, consider legal requirements which may require invoices to be processed and stored in the same country as receipt
    You should install ODC on machine with at least dual CPU cores at 2 GHz and 4 GB RAM
    When evaluating hardware scanning throughput, plan for 60% efficiency of maximum throughput, This is to also to account time for image quality review
    Enable Adaptive Thresholding on scanners to remove background colors and gradients for pure black-and-white images
    Use TIFF image format with CCIT Group IV compression at 300 dots per inch for optimal balance between scan quality and image size
    We do not recommend JPEG format due to its lossy compression
    We recommend less than 25 images in a batch to avoid delay caused by recognition exceptions
    Also, to optimize high volume scanning we recommend you implement ODC commit server to schedule the export of images to OFR import directory every 15-20 min
  • Lets review Oracle Forms Recognition in detail.
    OFR offers cutting-edge intelligent recognition capabilities for extracting the key invoice header data from scanned images. This extracted data is later pre-populated directly into invoice entry user-interface. Unlike other solutions that use supplier specific templates to extract information, OFR can intelligently locate data within the invoice regardless of its location on the image and whether or not it has processed invoices from that supplier before.
    OFR has self-learning intelligence to improve scan accuracy for suppliers over time and provides flexibility to define specific rules for attributes such as format masks on invoice and PO number to further boost recognition results. Implementers can also configure validations for the extracted data against the Fusion Applications database. This results in highly accurate data recognition that dramatically decreases the need for human intervention to correct and resolve exceptions.
    For Payables invoice processing, purchase order number, supplier, invoice number, invoice amount, and invoice date are extracted out-of-the-box.
  • Considerations for OFR
    Oracle Forms Recognition Runtime Service runs in the background as a server process. Each RTS instance can be configured to perform specific steps within the overall process and multiple RTS instances can run on a single server. For scalability purposes, you can set up multiple servers each running multiple instances of the RTS that can be centrally managed by the OFR RTS Manager.
    Each RTS instance can be configured to either run the Import/Export/Cleanup service or the Recognition/Classification/Extract service.
    You must designate 1 RTS instance for Import/Export/Cleanup for every 2-4 instance of RTS that runs data recognition
    Number of RTS instances running on a machine must not exceed the number of CPU cores available
    RTS instance that is dedicated to data recognition can process up to 250 invoices per hour
    Each additional instance can achieve near linear scalability depending on scan volume, document complexity and the number of attributes validated on the invoice image
    Hardware Recommendation is to have
    A quad CPU core server with minimum 8 GB RAM so more OFR RTS instances can be dedicated to the resource intensive recognition task
    You can either use a single server with enough CPU cores or scale by setting up multiple OFR RTS servers or slave servers
  • Oracle Forms Recognition consists of the following components:
    OFR Designer; OFR Runtime Service and OFR Verifier
    We have already discussed OFR runtime service in the prior slide, so now lets focus on OFR Designer and OFR Verifier.
    OFR Designer is a client tool that enables implementers to customize invoice data recognition process, such as information to be extracted and verification of the processing results. Such configurations are defined in what is called as ‘OFR project’ and its initialization configuration files or INI. The OFR Designer is only used during implementation time and is not part of the daily processing.
    OFR Verifier is the quality assurance application of the Oracle Forms Recognition suite. If RTS fails to extract and validate an invoice in a batch, the entire batch is marked as failed and will not be sent to IPM for routing.
    Recognition failure can be due to one of the following:
    Extracted values for one or more attributes failed validation against the Fusion Applications database. Payables imaging solution currently only validates the Supplier on the invoice; Failure could also be when OFR could not find a value with a sufficient confidence level for one or more attributes or Stamps or notes on the documents making sections illegible for OFR or Missing information on the scanned image
    A payables specialist reviews incomplete batches using OFR Verifier and re-submits them after correcting the exceptions.
    The Verifier, like ODC, is another client application providing multiple deployment options. Verifier can either be setup on each designated user’s workstation or users can access Verifier instances using remote desktop technologies.
  • Lets review Imaging and Process Management (IPM) in detail.
    IPM is an application running on the Enterprise Content Management (ECM) where invoice images are stored and then routed to payables specialists. For the rest of the invoice lifecycle, any reference to the invoice image will point to this repository so documents are never replicated.
    Images sent by OFR will be imported by the IPM Input Agent using a scheduled process. IPM and its content repository give you the flexibility to attach configurable storage and security policies to content. For example, for invoices you can set metadata to determine how long the documents will be stored, on what storage device, and who will be able to access and view them. The ability to move images over storage devices as needed maximizes the use of your infrastructure.
    After images are stored, IPM creates a BPEL task for each invoice which then routes the images to appropriate payables specialist(s) for data entry. IPM also provides an image viewer embedded within Fusion Payables application allowing payables specialists to review and annotate on the images.
  • Implementation Consideration for IPM
    The IPM image repository is installed and preconfigured by the common provisioning framework and there is no post-install manual configuration required. Prior to running the provisioning process, the IPM Input Directory (which is the same as the OFR Export folder) file system needs to be set up since its location is required to provision IPM. It is recommended that the IPM image repository be co-located with the IPM Input Directory to minimize network traffic when transferring images.
    The average size of a black-and-white invoice image saved in TIFF format with CCIT Group IV compression at 300 DPI is 40 KB per page. It is critical that invoices are digitized using the Adaptive Thresholding technology to remove gray scaling, otherwise the image size can go up to 300 KB per page. Implementers can use this sizing information together with the estimated invoice volume to determine the amount of storage needed for IPM.
  • Image Routing Considerations for Invoice Entry
    A default image routing rule based on the invoice amount assigned to individual users will be seeded as part of the provisioning process.
    Implementers will need to modify this routing rule using the Worklist application to achieve the desired specialization within the Payables department. For example, routing can be based on supplier, PO prefix, invoice number prefix to ensure the right group of payables specialists will process invoices based on their specific assignments. Moreover, to achieve optimal load balancing among specialists and to avoid task re-assignment, rules should be set up to assign invoice to a user group instead of individual specialist in the system.
  • Oracle Fusion Payables supports a variety of invoicing methods to meet the needs of your organization.
    For manual invoicing, Payables is pre-integrated with ODC, OFR, and IPM to support scanning of invoices for paper-less processing and routing.
    The robust invoice workbench allows you to enter complex invoices with sophisticated defaulting and matching logic to match to POs or receipts. It also
    provides a holistic view of the invoice throughout its lifecycle. You can view the invoice status, installments, holds placed, payments made, prepayments
    that have been applied, etc. You can also drill down to the original PO or receipt. For high volume invoice entry that does NOT require extensive online validation, we have a spreadsheet invoice entry.
    The invoice open interface can be populated to import the invoices into Payables in bulk.
    Supplier Portal –Allows suppliers to enter their own invoices in a self-service manner. Any unmatched invoices are then routed through approval rules for approval.
    For Automated Invoicing: To alleviate the workload of your Payables staff, there are many ways in which invoices are created automatically.
    Oracle supports the Evaluated Receipt Settlement (ERS) process to help you get early payment discounts you’ve negotiated by automatically creating an invoice in Oracle Payables upon receipt of goods
    Using the Return to Supplier (RTS) feature, the system automatically creates debit memos directly in your Payables system when you return goods to your supplier.
    Payables will automatically create invoices from expense reports entered by employees in Oracle Fusion Expenses to facilitate payment.
    For Electronic Invoicing:
    Payables supports a web service and B2B invoice in XML format for creating invoices electronically.
    Regardless of the invoicing method you use, Payables supports foreign currency conversion, automatic tax calculation, invoice approval, online accounting, multi-period accounting, and multiple accounting representations.
  • Lets review considerations for various invoice entry methods
    Using Supplier Portal, have suppliers enter their own invoices and inquire on PO agreements, invoices and payment s to reduce paper and transaction processing costs
    Using Evaluated Receipt Settlement or pay on receipt, automate invoice creation upon receipt in Logistics
    ERS is best suited for inventory purchases as ERS can work if there is a PO; Also POs should include all costs to produce and ship the product, including freight charges and miscellaneous charges. POs also must have firm pricing that should not be affected by unexpected charges
    Consider Invoice spreadsheet for invoices having similar lines to utilize spreadsheet features like copy/paste, drag/drop, hide/unhide cells etc.
    Spreadsheet is not ideal for payables specialist performing high volume invoice entry in a shared service center.
    Use Payables open interface for importing invoices into Payables from other sources
  • Lets review invoice approval considerations
    Invoice Approval uses Oracle Approvals Management to determine who approves invoices and how they will be routed to different approvers. You can have different approval rules for PO matched invoices and Unmatched. Invoice approval is required for self service invoices that are not matched to a purchase order.
    Approvers can approve or reject the invoice.
    If an approver approves the invoice, then the invoice goes to the next person in the approver list until all required people approve the invoice.
    If an approver rejects the invoice, then the approval process ends.
    If an approver rejects an invoice, then you can:
    Use the Force Approval option to manually approve the invoice. Allow few selected users to force approve on exception basis
    Use the Initiate Approval option to resubmit the invoice to the Invoice Approval after correcting any issue that caused the approver to reject the invoice
    Approval Rules can be setup for position, job and supervisory hierarchy depending on approval needs. Consider implementing approval before validation to reduce days payable outstanding (DPO) or alternatively require validation before approval to ensure data accuracy
    Consider auto-approving specific invoices that need little review
    E.g. If your utility bill invoices are always under $500, consider setting up an auto- approval. For expense report and customer refund payment requests, you need not configure approval rules as they are upstream transactions that are already pre-approved
  • Invoice Approval Rules Configuration
    Invoice Approval Rules are defined in Worklist application
    Approval Rules are based on Data driven conditions having effective dates and priorities and they can be activated or de-activated
    An example rule could be where for invoice type standard, and for amount greater than 2000, approval is needed by Manager, and for amounts less than 2000, approval is needed by Supervisor.
    For invoice type of payment request, the invoice is auto-approved and for other conditions the one level supervisor approval is needed
  • Match Approval Levels
    To enforce company policies and ensure that you only pay for goods or services you receive and that suppliers do not over-bill you, Oracle Payables with Purchasing supports 2, 3, and 4 way matching for both goods and services
    2 way matching can also support the automatic generation of invoices in AP when goods or services are received.
    The 2-Way matching checks that Invoice Quantity does not exceed PO Quantity and Invoice Price does not exceed PO Price
    3-way matching: checks the same plus Invoice Quantity does not exceed Received Quantity
    4 way matching checks above plus Invoice Quantity does not exceed Accepted Quantity
  • Here are some of the considerations for 2, 3, and 4 way approval.
    Consider 2-way for purchases where receipt is not applicable and for non-inventory purchases or service industries
    E.g. Insurance, Financial Services
    3-way is the recommended and most widely practised and is used for physical goods, inventory or non-inventory services with units E.g. Consulting labour hours
    4-way can be considered for inventory items that require inspection
    E.g. Manufacturing, Wholesale and Retail Industries
    Unmatched invoices can be used for legal services or utility bills and payment requests for employee expense reports and customer refunds generated in receivables
  • Tolerances and Holds
    You can define the matching tolerances to allow for variances between Invoices, POs and Receipts. Tolerances can be both percentage-based and amount-based. Multiple tolerance templates for goods or services can be defined and then assigned to the appropriate supplier sites. This allows you to manage your tolerances centrally yet assign your policies at the trading partner location.
    If your invoice amount and/or quantity exceeds the tolerance levels you defined, then Payables will automatically apply holds to the invoice and prevent payment until the hold is released.
  • Lets review some other considerations for Invoice processing:
    Setup default accounts to speed transaction entry and implement internal control in Common Options for Payables and Procurement, Supplier and Site configuration and Distribution sets
    Implement early pay discounts with multiple discount dates to avoid missing discount period using Invoice Options and payment Terms
    Apply available prepayments during invoice entry by enabling Show available prepayments during invoice entry in Payables Invoicing Options -
    Schedule invoice validation and create accounting to process daily
  • Fusion Tax:
    Payables relies on Fusion Tax for tax configuration and calculation.
    Oracle Fusion Tax consists of a tax knowledge base, a variety of tax services that respond to specific tax events, a set of repositories (for tax content and tax recording) that allows customers to manage their local tax compliance needs in a proactive manner.
    Oracle Fusion Tax supports all types of taxes, such as sales and use taxes that are recoverable or non-recoverable. It supports deferred tax and tax on freight. It supports the creation of Quantity Based tax rates for duty taxes.
    Users can specify whether a tax is inclusive in the amount of the good/service or not when defining taxes in the system.
    It also supports offset taxes, which is a negative-rate tax used to fully or partially reduce another tax.
    You can control whether or not to allow overrides of calculated tax amounts during transaction entry. You can set controls to allow overrides at multiple levels, such as at the transaction type, user, and tax level. For example, you may allow overrides to GST but not for VAT.
    Reporting on Tax
    Calculated taxes are then stored in the form of tax lines in the tax repository. These tax lines have all necessary information needed for tax reporting.
    Refer to Oracle Fusion Tax Implementation and Configuration Considerations training for more details.
  • Payables uses SLA to define the accounting events and rules and generate accounting.
    A single invoice in AP can create multiple accounting representations in multiple currencies.
    In this example, the Primary Ledger represents the corporate representation for a French subsidiary. It uses the parent’s US GAAP accounting method and corporate chart of accounts. It uses the local currency, euros.
    The Secondary Ledger represents the French statutory representation that uses the French interpretation of IFRS and the French statutory chart of accounts that is also in euros.
    For consolidation to the U.S. parent, we have a USD Reporting Currency assigned to the primary ledger.
    Refer to Oracle Fusion Subledger Accounting Implementation and Configuration Considerations training for more details.
  • Lets review considerations for payment processing
  • In the payment processing area
    We recommend you use Single Payment for off-cycle payments such as during period close and supplier inquiries on due payments
    Optimize the payment process request frequency based on organization’s size to aid in availing early pay discounts and to avoid off-cycle single payments
    Schedule Cash Requirements Report to run before Payment Process Request to accurately forecast cash needs
    For employee expense reimbursement based on expense policy consider Payment Process with straight through processing as it results in prompt payment for expense related invoices that are based on policy and strict payment terms
    Refer to Oracle Fusion Payments Implementation and Configuration Considerations training for more details.
  • Lets review Payables to General Ledger Reconciliation Report
    Close your books faster by automating the labor-intensive process of matching subledger transactions to accounting entries and identifying the discrepancies. Depending on how work is assigned in your organization, the Accounts Payable Manager or the general accounting manager both can access the reconciliation report.
    Payables to General Ledger Reconciliation report allows you to:
    Identify reconciliation exceptions automatically
    Identify beginning and ending balances that matches Payables Trial Balance
    Drilldown to journal and transaction reports for detailed analysis
    Download and analyze report output in a spreadsheet
    Reconcile by ledger, specific business unit or account balancing segment
  • Implementation considerations for Payables General Ledger Reconciliation Report
    Consider data purge frequency for the reconciliation extract data by setting up profile option AP: Reconciliation data purge frequency . This option indicates the number of days for which reconciliation extraction data is kept in the tables. 
    Financial Category of value Payables must be included in Chart of Account setup or the report will not select any data. If you try to choose GL account values in the extract parameters that do not have this category assigned, the extract program will error, indicating the financial category is not assigned.
  • Some of the best practices around reconciliation report are:
    Payables Period should be set to Close because the detail reports are real-time. In order for the detail to match the Summary data on the Reconciliation report, you must make sure to limit access to that accounting period.
    Be sure the subsequent period is already open so business operations continue during the reconciliation process.
    Reopen the reconciling period to make adjusting entries, but restrict access at that time to control final accounting.
    For quicker, cleaner reconciliation, general ledger sources other than Payables should not be allowed to post to the Payables accounts.
  • Let me point to some other resources that would be useful:
    Some useful Implementation Trainings are:
    Oracle Fusion Payments Implementation and Configuration Considerations
    Oracle Fusion Subledger Accounting Implementation and Configuration Considerations
    Oracle Fusion Tax Implementation and Configuration Considerations
    Oracle Fusion Common Procurement Implementation and Configuration Considerations
    Also refer to following Functional TOIs
    Fusion 1.0 TOI: Set Up Procurement – Define Payables
    Fusion 1.0 TOI: Set Up Procurement – Define Disbursements
  • This concludes this session on Payables Implementation and Configuration Considerations.
    Thank you.
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    • 1. Oracle Online Training Materials – Usage Agreement Use of the information, documents and online training courses (collectively, “Materials”) found on this area of the Site constitutes agreement with the following terms and conditions (as well as those set forth in the Purpose and Disclaimer sections below): 1. Oracle is pleased to allow its business partner (“Partner”) to download and copy the Materials found on this area of the Site. The Materials are proprietary information of Oracle. Partner or other third party at no time has any right to resell, redistribute or create derivative works from the Materials. The use of the Materials is restricted to the non-commercial, internal training of the Partner’s employees only. The Materials may not be used for training, promotion, or sales to customers or other partners or third parties. 2. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. 3. Oracle disclaims any warranties or representations as to the accuracy or completeness of any Materials. Materials are provided "as is" without warranty of any kind, either express, implied or statutory, including without limitation the implied warranties of merchantability, satisfactory quality, fitness for a particular purpose, accuracy, timeliness and non-infringement of third-party rights. The information contained herein is subject to change without notice. 4. Under no circumstances shall Oracle be liable for any loss, damage, liability or expense incurred or suffered which is claimed to have resulted from use of these Materials. As a condition of use of the Materials, Partner agrees to indemnify Oracle from and against any and all actions, claims, losses, damages, liabilities and expenses (including reasonable attorneys' fees) arising out of Partner’s use of the Materials. 1 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 2. Purpose: This document provides an overview of features and enhancements included in Oracle Fusion Applications 11gR1 Release 11.1.1.5.0 and applicable updates. It is intended solely to help you assess the business benefits of upgrading your existing Oracle Products to this release, or implementing completely new Oracle developed products, and planning your I.T. Projects. Disclaimer: This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement or other applicable contract with Oracle, with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without Oracle’s prior written consent. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is intended to outline our general product direction. It is intended for informational purposes only and solely to assist you in planning for the implementation and upgrade of the product features described. Release information contained in this document is not a firm development plan. Release information published here should not be used as the basis for customer delivery commitments, as part of marketing efforts, or during contract negotiations. This is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality, and inclusion or not thereof in the commercially available version of the Software, if any, is subject to change at any time and is always at Oracle’s sole discretion. This document is not considered part of the applicable program documentation. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code. 2 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 3. <Insert Picture Here> Oracle Fusion Payables Implementation and Configuration Considerations
    • 4. Agenda • Procure-to-Pay Overview and Prerequisite Setups • Key Implementation Considerations • Function and Data Security • Business Units and Shared Service Centers • Invoicing • Integrated Imaging Solution • Multiple Invoice Entry Methods • Match Options and Match Approval Levels • Tolerances and Holds • Invoice Approval • Centralized Tax Engine • Multiple Accounting Representations • Payment Processing Options • Payables to Ledger Reconciliation Report • Additional Resources 4 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 5. Procure-to-Pay Overview Requisition • Identify requirement • Authorize purchase request Purchase Goods/Services • Negotiate/select vendor • Receive shipment notice • Request/receive/ evaluate quotation • Receive goods • Create purchase order 5 Receive Goods/Services • Inspect goods • Ensure goods match PO quantity Record Invoice Issue Payments • Record invoice • Schedule payment • Match invoice to purchase order or receipt • Pay supplier • Approve invoice Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 6. Oracle Fusion Payables Detailed Business Processes and Activities Set Up Procurement • Define Payables Manage Payments • Prepare and Record Payments • Record Accounting for Payments 6 Manage Invoices • Receive and Process Invoices • Submit Invoices • Approve Invoices • Audit Invoices • Record Accounting for Invoices Manage Accounts Payable Balances • Analyze Accounts Payable Balances • Close Payables Period • Manage Accounts Payable Disputes Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 7. Prerequisite Setups Payables Prerequisites • Required prerequisites enforced through Functional Setup Manager 7 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 8. Prerequisite Setups Setup Task Lists Define Common Application Configuration for Financials Define Common Financials Configurations Define Invoicing and Payments Configuration 8  Define Synchronization of Users and Roles from LDAP  Define Implementation Users  Define Enterprise Structures for Financials  Define Ledgers  Define Business Units  Define Facilities for Financials  Define Resource Organization Information  Define Security for Financials  Define Approval Management for Financials  Define Transaction Taxes  Define Supplier Configuration  Define Payables  Define Disbursements  Configure Payment System Connectivity  Define Payments Security  Define Subledger Accounting Rules  Define Cash Management and Banking Configuration Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 9. Payables Setup Financials Implementation Project Payables setup available with Financials and Procurement offering 9 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 10. Payables Function and Data Security • Function security implemented using Job Role and data security using Data Roles • Three predefined job roles to meet Payables job functions: – Accounts Payable Specialist, Accounts Payable Supervisor, and Accounts Payable Manager – Payables job roles are configured to maintain segregation of duties for managing suppliers, creating invoice, force approving invoice and creating payment • Generate data roles for business units using seeded data role template • Predefined job roles and the assigned duties can be customized using Oracle Identity Manager (OIM) and Access Provisioning Manager (APM) Refer to Oracle Fusion Financials Security Implementation and Configuration Considerations for more details. 10 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 11. Payables Function and Data Security Duty Role AP Specialist AP Supervisor AP Manager Payables Administration Duty  Payables Invoice Creation Duty   Payables Invoice Inquiry Duty    Payables Invoice Processing Duty   Payables Invoice Hold Resolution Duty   Payables Invoice Management Duty   Payables Payment Creation Duty  Payables Payment Processing Duty   Payment File Management Duty   Disbursement Process Management Duty   Disbursement Data Management Duty   Subledger Accounting Duty   Mass Asset Additions Creation Duty   Payables Period Close Duty  Payables Balance Analysis Duty  Payables Withholding Tax Reporting Duty  Payables to Ledger Reconciliation Transaction Analysis Duty  Accounts Payable Period Status Management Duty  11 App. Implementation Consultant Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 12. Business Units and Shared Service Centers
    • 13. Business Units and Shared Service Centers Business Unit Unit of an enterprise that performs one or many business functions that can be rolled up in a management hierarchy • Can support one or many business functions • Can process transactions on behalf of many legal entities • Assigned to one primary ledger – Ledger assignment is mandatory for BUs with business functions that produce financial transactions Refer to Oracle Fusion Financial Enterprise Structures Implementation and Configuration Considerations training for more details. 13 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 14. Business Units & Shared Service Centers Shared Service Centers • Share services to reduce cost and enforce company policies and procedures consistently • Shared Service Centers modeled using business units in two ways: Service Provider Model – Define relationships between business units for a business function, identifying one business unit in the relationship as a service provider and others as clients Business Unit Data Security – Allow shared service center personnel to process transactions for other business units (This is referred to as Multi Org Access Control in the Oracle EBusiness Suite) 14 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 15. Business Units & Shared Service Centers Business Functions in Procure-to-Pay Flow • Requisitioning - Raises requisitions for products or services needed for day to day activities • Procurement - Processes requisitions, negotiate supplier terms and manage relationships • Payables Invoicing – Processes supplier invoices and financially responsible for purchasing transactions Request Source Buy Request Pay Buy Pay BU 1 BU 1 Shared BU 2 Service BU 3 BU 2 Central Sourcing, Local Execution Decentralized Request Source Buy Request Pay BU 1 Source Buy Pay BU 1 Automated financial reconciliation Shared Service BU 2 Shared Service Automated financial reconciliation BU 2 Complete Shared Services 15 Source Separate Procurement and Invoicing Service Providers Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 16. Business Units & Shared Service Centers Shared Service Centers: Best Practice • Centralize Procurement function using service provider model – Negotiate supplier terms for multiple client business units – Sharing and usage of supplier sites and centrally authored catalog content – Process requisitions from multiple Requisitioning BU • Consolidate Payables operations from multiple business units into single shared service center using data security – Centralize invoice receipt by having suppliers send invoice directly to AP department instead of Buyers to ensure timely processing 16 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 17. Business Units & Shared Service Centers Procurement via Subsidiary – Implementation Consideration Purchase Order’s Sold-to BU can be different from the Requisitioning BU to facilitate buying through subsidiaries • Set up subsidiaries in some countries to meet legal requirements even though the primary operations are located elsewhere • Take advantage of favorable tax regime Vision Services buying goods via subsidiary Vision Germany 17 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 18. Integrated Imaging Solution
    • 19. Integrated Imaging Solution for Invoice Entry Third Party Solutions versus Oracle’s Imaging Solution Third Party Solutions • Bolt on capabilities disjoint from core ERP application, operating in a peripheral fashion, using proprietary technologies Oracle’s Imaging Solution • Fully integrated “out-of-the-box” solution supporting the entire lifecycle of invoice processing from scanning, recognition, image routing to invoice entry and approval • Components from different vendors for • Integrated solution installed and maintained scanning, data extraction, storage and by a common provisioning framework, with workflow require dedicated IT staff to set minimal configuration and setup needed up, integrate and maintain, resulting in higher cost of ownership • All components certified and supported by • Disparate platforms, certification and Oracle release cycles increase the risk of incompatibility and maintenance overhead 19 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 20. Integrated Imaging Solution for Invoice Entry Process Flow Scanning Field Office 1 ODC Field Office 2 ODC Field Office 3 ODC Shared Services Exception Handling OFR Verifier Forms Recognition OFR Image Repository IPM Image Routing BPEL AP Specialist 1 Invoice Entry 20 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential AP Specialist 2 Invoice Entry
    • 21. Integrated Imaging Solution for Invoice Entry Oracle Document Capture (ODC) Capture Recognize Route Enter Approve • Digitize paper invoices to industry standard image formats with built-in deskew, despeckle and black border removal features • Support for enterprise class scanners and leading high-volume document scanning interfaces: ISIS and Kofax Adrenaline/VirtualReScan • Flexible implementation options for scanning invoices at multiple field offices 21 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 22. Integrated Imaging Solution for Invoice Entry ODC – Implementation Considerations and Recommendations • Request suppliers to send invoices to one central location for scanning or decentralize ODC at each invoice receipt location – Consider legal requirements which may require invoices to be processed and stored in the same country as receipt • Install ODC on machine with at least dual CPU cores at 2 GHz and 4 GB RAM • When evaluating hardware scanning throughput, plan for 60% efficiency of maximum throughput to account for image quality review • Enable Adaptive Thresholding on scanners to remove background colors and gradients for pure black-and-white images • Use TIFF image format with CCIT Group IV compression at 300 DPI for optimal balance between scan quality and image size – JPEG format not recommended due to lossy compression • We recommend less than 25 images per batch to avoid delay caused by recognition exceptions • To optimize high volume scanning we recommend you implement ODC commit server to schedule the export of images to OFR import directory every 15-20 min 22 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 23. Integrated Imaging Solution for Invoice Entry Oracle Forms Recognition (OFR) Capture Recognize Route Enter Approve • Intelligent data extraction without using supplier-specific templates • Pre-configured to capture attributes regardless of location on the invoice • Self-learning intelligence to improve scan accuracy over time • Flexibility to define rules such as format masks for invoice and PO number • User-configurable validation of image data against Payables and Procurement system 23 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 24. Integrated Imaging Solution for Invoice Entry OFR Runtime Service (RTS) – Implementation Considerations • OFR RTS runs in the background as a server process. Multiple RTS instances can run on a server • Each RTS instance can perform one of following : – Import, Export and Cleanup of image batches – OCR, Classification and Extraction • Designate 1 RTS instance for Import/Export/Cleanup for every 2-4 instance of RTS running data recognition • Number of RTS instances running on a machine must not exceed the number of CPU cores available • RTS instance dedicated to data recognition can process up to 250 invoices per hour – Each additional instance can achieve near linear scalability depending on scan volume, document complexity and the number of attributes validated Hardware Recommendations • A quad CPU core server with minimum 8 GB RAM so more OFR RTS instances can be dedicated to the resource intensive recognition task – You can either use a single server with enough CPU cores or scale by setting up multiple OFR RTS servers (slave server) 24 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 25. Integrated Imaging Solution for Invoice Entry OFR Designer and Verifier – Implementation Considerations OFR Designer • A client tool for configuring implementation details (known as a “project”) and its initialization (INI) – A pre-configured initialization (INI) file is installed as part of Fusion Applications to be used for customizing your project – Modify the project and the .ini file on site to update the Fusion Applications database connection information, OFR Import/Batch/Export folder locations and any additional data validation to be performed OFR Verifier • Quality assurance application that detects image batches with invoices failing recognition or validation. Payables specialist reviews and re-submits batches after correcting exceptions – Verifier instance should be co-located with the OFR Batch folder to minimize image loading time • We recommend using remote desktops or Citrix accounts for OFR Designer and Verifier since number of users using these will be limited and also to centralize installation and maintenance 25 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 26. Integrated Imaging Solution for Invoice Entry Imaging and Process Management (IPM) Capture Recognize Route Enter Approve • Common image repository where invoice images are stored and then routed to payables specialists • Flexibility to attach configurable storage and security policies to content E.g. You can configure storage device, duration of storage, and users who can access and view invoice images • Embedded image viewer within Fusion Payables application allowing payables specialists to review and annotate images 26 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 27. Integrated Imaging Solution for Invoice Entry IPM – Implementation Considerations and Recommendations • We recommend IPM image repository to be co-located with IPM Input Directory to minimize network traffic when transferring images • Average size of a black-and-white invoice image saved in TIFF format with CCIT Group IV compression at 300 DPI is 40 KB per page – We recommend scanners with Adaptive Thresholding technology to remove gray scaling, otherwise the image size can go up to 300 KB per page – Use this sizing information along with estimated invoice volume to determine the amount of storage needed for IPM 27 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 28. Integrated Imaging Solution for Invoice Entry Image Routing – Implementation Considerations • Payables provides a default image routing rule based on invoice amount to specific seeded users that must be modified for your application users • Configure image routing rules to achieve desired specialization within the Payables department using Worklist application – Routing can be based on supplier, PO prefix, invoice number prefix to ensure invoice entry by right group of AP specialists • Configure routing rules to assign invoice to a user group instead of individual specialists to achieve optimal load balancing and to avoid task re-assignment 28 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 29. Multiple Invoice Entry Methods Manual Invoice Entry Automated Invoicing Invoice Scanning and Imaging ERS (Self-Billing) Invoices Robust Workbench with Sophisticated Matching Return to Supplier (RTS) Spreadsheet Invoice Entry Open Interface Self-Service Invoice Entry Supplier Portal Payables Invoicing  Foreign Currency Conversion  PO/Receipt Matching  Prepayment Application  Automatic Tax Calculation (Sales, Use, VAT, and Withholding Taxes)  Invoice Validation  Invoice Approval Expense Reports Customer Refunds Intercompany Invoices Electronic Invoices Web Service B2B Invoice  Online or Batch Accounting  Multiple Accounting Representations 29 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 30. Multiple Invoice Entry Methods Considerations Type Implementation Consideration Supplier Portal Invoice Entry • Have suppliers enter their own invoices and inquire on PO agreements, invoices and payment s to reduce paper and transaction processing costs Automate invoice creation for payment of goods upon receipt in Logistics Evaluated Receipt Settlement Spreadsheet Invoice Entry Open Interface 30 • Best suited for inventory purchases as ERS can work if there is a PO • POs should include all costs to produce and ship the product, including freight charges and miscellaneous charges • POs must have firm pricing that should not be affected by unexpected charges • For invoices having similar lines to utilize spreadsheet features like copy/ paste, drag/drop, hide/unhide cells etc. • Not ideal for payables specialist performing high volume invoice entry in a shared service center • For importing invoices into Payables from other sources Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 31. Invoice Approval Implementation Considerations and Recommendations Standard Invoices • • • • Allow few selected users to force approve on exception basis Define different approval rules for PO matched and unmatched invoices Setup position, job and supervisory hierarchy depending on approval needs Consider implementing approval before validation to reduce days payable outstanding (DPO) or alternatively require validation before approval to ensure data accuracy • Consider auto-approving specific invoices that need little review E.g. If your utility bill invoices are always under $500, consider setting up an auto- approval • Supplier Portal Unmatched Invoices • Require approval for non-PO matched invoices entered by suppliers • Payment Requests • For expense report and customer refund payment requests, you need not configure approval rules as upstream transactions are pre-approved 31 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 32. Invoice Approval Rule Configuration Invoice Approval Rules • Defined in Worklist application • Data driven conditions having effective dates and priorities • Can be activated or de-activated Example Rule • Invoice type ‘Standard’ – For amount greater than 2000, require approval by Manager – For amount less than 2000, require approval by Supervisor • Invoice type ‘Payment Request’ – Auto-approval • Others – Supervisory one level approval 32 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 33. Match Approval Levels • Enforce internal control and fiscal discipline to ensure that payment is made only for goods and services ordered or received Invoice PO 2-Way PO Receipt PO Receipt Invoice 3-Way 4-Way 33 Inspection Invoice Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 34. Match Approval Levels Implementation Considerations 34 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 35. Tolerances and Holds Implementation Considerations Supplier Sites Invoice PO Atlanta • Prevent payment for invoices violating policies by defining tolerances • Define tolerances centrally and apply them to multiple supplier sites • Define percentage or amount based matching tolerances for goods and services Receipt Paris 35 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 36. Invoice Processing Implementation Considerations and Recommendations Implementation Considerations Setup Tasks/ Implementation Step Setup default accounts to speed transaction entry and implement internal control • Common Options for Payables and Procurement • Supplier Configuration • Distribution sets Implement early pay discounts with multiple discount dates to avoid missing discount period • Payables Invoicing Options • Payment Terms Apply available prepayments during invoice entry • Payables Invoicing Options - Show available prepayments during invoice entry Schedule invoice validation and create accounting to process daily • Schedule Create Accounting process to run daily 36 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 37. Oracle Fusion Tax Centralized Tax Engine Tax Setup • Quickly set up tax with pre-seeded content • Adapt to changing tax rules with dateeffective tax content • Simulate tax changes with Tax Simulator Tax  Sales and Use Tax  Recoverable & Non-Recoverable Tax  Deferred Tax Tax Calculation •Automatically and accurately calculate tax •Allow certain individuals to override tax calculation  Tax on Freight  Duty Tax  Tax on Intercompany Movements  Inclusive or Exclusive Tax Tax Reporting •Standardized and simplified reporting using BI Publisher  Offset Taxes •Modify/extend reporting templates Refer to Oracle Fusion Tax Implementation and Configuration Considerations training for more details. 37 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 38. Subledger Accounting (SLA) Multiple Accounting Representations Single invoice can create multiple accounting representations in multiple currencies Payables Invoice Centralized Centralized Accounting Accounting Dr Reporting Currency Cr SSC France (Secondary Ledger) Refer to Oracle Fusion Subledger Accounting Implementation and Configuration Considerations training for more details. 38 French Fiscal Plan Compatible Std Calendar EUR Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 39. Payment Processing Options
    • 40. Payment Processing Options Implementation Considerations and Recommendations • Use Single Payment for off-cycle payments such as during period close and supplier inquiries on due payments • Optimize check run frequency based on organization’s size to aid in availing early pay discounts and to avoid off-cycle single payments • Schedule Cash Requirements Report to run before Payment Process Request to forecast cash needs • For employee expense reimbursement based on expense policy consider Payment Process with straight through processing. – Results in prompt payment for invoices based on policy and strict payment terms Refer to Oracle Fusion Payments Implementation and Configuration Considerations training for more details. 40 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 41. Analyze Account Payables Balances Payables to General Ledger Reconciliation Report • Streamline your reconciliation process by comparing Payables transaction activity, Subledger Accounting and General Ledger data. – – – – – Identify reconciliation exceptions automatically Identify beginning and ending balances that matches Payables Trial Balance Drilldown to journal and transaction reports for detailed analysis Download and analyze report output in a spreadsheet Reconcile by ledger, specific business unit or account balancing segment • The reconciliation report is available to both for General Ledger and Payables users 41 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 42. Payables to General Ledger Reconciliation Implementation Considerations • Set Payables Profile Option for data purge frequency – Purge old extract files based on days set in profile when new extract is run – Set interval so that it does not interfere with the reconciling timeline – All extract requests that do not fall within this interval are saved and can be selected from the Recon Report OBIEE • Assign financial category of Accounts Payables to all liability natural account values – Financial Category must be assigned, or the extract will error and not select any data 42 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 43. Payables to General Ledger Reconciliation Best Practices • Run the Payables to General Ledger Reconciliation report after the Payables period is set to Closed because drilldown data is real-time and summary data is static • Make sure the next period is open for entry of new activity • General Ledger sources other than Payables should not be allowed to post to Payables accounts 43 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 44. Additional Resources Implementation Trainings • • • • Oracle Fusion Payments Implementation and Configuration Considerations Oracle Fusion Subledger Accounting Implementation and Configuration Considerations Oracle Fusion Tax Implementation and Configuration Considerations Oracle Fusion Common Procurement Implementation and Configuration Considerations Functional TOIs • Fusion 1.0 TOI: Set Up Procurement – Define Payables • Fusion 1.0 TOI: Set Up Procurement – Define Disbursements 44 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential
    • 45. 45 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential

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