Suppliers defined in AP.
Supplier contacts replicated for each supplier site.
Supplier becomes as TCA Party.
Suppliers Sites as TCA Party Site for each distinct address.
Contacts for each supplier/address , it means Single supplier address
and contact can be leveraged by multiple sites, for each OU
– A single change to an address can be seen instantly by all OUs
– No longer need to manually ‘push’ updates across OUs.This can be
best understood by the figure below.
Click on Create to Create
a new Supplier Bank A/c
Banks and Bank Details
• The Bank Account model in R12 provides a single
access point for defining and managing internal bank
accounts for Oracle Payables, Oracle Receivables,
Oracle Payroll, Oracle Cash Management, and Oracle
• A single Legal Entity is granted ownership of each
internal bank account. One or more Organizations
are granted usage rights.
Ownership of internal bank account
• Each Legal Entity is granted ownership for each
internal bank account.
• For Granting Access to the Legal Entities log In to Sys
• Go to “User Management” Responsibility
• Click on “Roles & Role Inheritance”
Enter your Legal
Entity in Bank
Note:- If Legal Entity Is not Granted Access at the Sys
admin Level in “User Management” Responsibility, you
can not View your Legal Entity in the above “Bank
Account Owner” Field.
Select Save and
Next to Continue
Select Save and
Next to Continue
rest all are
Retainage and Retainage Release
• Retainage is the common practice of withholding a fixed
amount / percentage of payment until all work under a
contract is complete and accepted.
• Retainage is also called ‘retention’ or contractual
• At the end of the project or when agreed events have
occurred, the supplier requests the amount retained and
payment is made to release it.
• Retainage comes under Complex Payments
Contract with Subway
Contract amount 15,000, Retainage 20%
AMT Invoice Retain Amount Amount Paid
1. Stage - 8000 8000 1600 6400
2. Stage - 4000 4000 800 3200
3. Stage - 3000 3000 600 2400
Total - 15,000 3,000 12,000
Release the Retained Amount, Once an Agreed event
Occurred by “Retainage Release Invoice”
Enter Retainage A/c in
1. Navigate to Supplier’s Window
4. Give Retainage Rate
Create Complex Service Agreement in Purchasing
Select “Complex Service Agreement”
from list of Values
• The Payments Manager enables you to complete a pay
run from start to finish Payments.
• The Payments Manager is comprised of the following
Payment Process Requests
Creating Payments through Payment Manager
Query “Process Request
Status got Confirmed
Navigate to Payments Overview
to view Payments Made
• The Payables and Receivables Netting feature enables the
automatic netting of Payable and Receivable transactions
within a business enterprise.
• You can predefine a netting agreement that incorporates the
netting business rules and transaction criteria needed to run
your tailored netting process.
• The netting process automatically creates the Payables
payments and Receivables receipts required to clear a
selected number of Payables and Receivables transactions.
Prerequisites for AP/AR Netting
• Define a netting control account in GL.
• Define a netting bank account.
• Associate the bank account with the AP/AR Netting
• Enable the Allow Payment of Unrelated Transactions
Receivables System Option.
• Define Document Sequence for Receipts and