R12 AP New Features


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A Presentation/Document that outlines all the New features in Oracle R12 AP module.

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R12 AP New Features

  2. 2. Trading Community Architecture
  3. 3. Agenda  Suppliers  Bank’s  Retainage  Recoupment  Payments Manager  AP/AR Netting
  4. 4. Supplier’s In 11i  Suppliers defined in AP.  Supplier contacts replicated for each supplier site. In R12  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.
  5. 5. Creating Supplier Creating Supplier
  6. 6. Select
  7. 7. Click Apply to continue Enter Header Level Info
  8. 8. Select Address book to Insert Site Address
  9. 9. New Address
  10. 10. Site Name
  11. 11. Click on Create to Create a new Supplier Bank A/c
  12. 12. 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 Treasury. • A single Legal Entity is granted ownership of each internal bank account. One or more Organizations are granted usage rights.
  13. 13. 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 Admin • Go to “User Management” Responsibility • Click on “Roles & Role Inheritance”
  14. 14. Give Required Information Click on Go
  15. 15. Click on Update
  16. 16. Select
  17. 17. Click on Run Wizard
  18. 18. Select Add Legal Entities to Give access to Bank Accounts
  19. 19. Click on apply after Adding Legal Entities
  20. 20. Creating Bank and Bank Branches in Payables Navigation for Defining Banks Select
  21. 21. Select
  22. 22. Click on Create
  23. 23. Enter Bank information Select
  24. 24. Click on Create to Add Address
  25. 25. Click on Apply to Save the informatio n entered
  26. 26. Click
  27. 27. Click Finish after entering contact info Click on Create to enter a Contact info
  28. 28. Creating Bank Branches Click on Bank Braches Tab Create new Bank Branches
  29. 29. Enter Bank Name and Country Click Continue
  30. 30. Enter Branch Information Select Save and Next
  31. 31. Select Create to Fill Bank Branch Address
  32. 32. Enter Branch information Click on Apply
  33. 33. Select
  34. 34. Click Finish after entering Contact’s Click on Create Contact to add Contact
  35. 35. Creating Bank Account’s Navigation Select
  36. 36. Create New Bank Accounts
  37. 37. Enter Bank And Branch Name Click Continue
  38. 38. Enter your Legal Entity in Bank Account Owner Select Next to Continue 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.
  39. 39. Select Save and Next to Continue Enter Bank Account Information
  40. 40. Select Save and Next to Continue Enter Required Information rest all are Optional
  41. 41. Select to Grant Access to Operating Unit’s
  42. 42. Enter Account use and Operating Unit Select Continue
  43. 43. Enter Payment Method and Category
  44. 44. Select Apply to continue
  45. 45. Click on Add Organization Access to Give bank account access to Multiple Operating Units Click Save and Next to Continue
  46. 46. Select Finish to Save your work Click on Create Contact to enter Contact info of Bank account
  47. 47. Select Select the Bank Account
  48. 48. Select
  49. 49. Select Apply Enter Required Information
  50. 50. Payment Doc got Created
  51. 51. 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 withholds’. • 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
  52. 52. 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”
  53. 53. Required Setups Enter Retainage A/c in Financial Options
  54. 54. 1. Navigate to Supplier’s Window 3. Select 2. Select 4. Give Retainage Rate
  55. 55. Create Complex Service Agreement in Purchasing Navigation Select
  56. 56. Select “Complex Service Agreement” from list of Values Click
  57. 57. Enter Supplier and Supplier Site Go To
  58. 58. Enter Contract Amount Click on Update Enter Type as Fixed Price Enter Contract Services Need by Date
  59. 59. Select Enter Retainage Rate Enter Charge Account
  60. 60. Select
  61. 61. Select Split to Split the Contract into Stages
  62. 62. After completion move to the Distributions Tab Give the Need by Date Enter Type as Split the Contract amt Lump Sum
  63. 63. After Completion select Submit
  64. 64. Complex Service Agreement has been Approved. Agreement NO is- 5546
  65. 65. Navigate to Invoice Workbench to Raise Invoice Enter the Enter the Agreement No Invoice Amt Match Invoice with the Agreement
  66. 66. Select the Match Amount Click on Match after Selecting
  67. 67. 10 percent of the Total amt got automatically got Retained Go to Actions and Pay the Invoice
  68. 68. Out of 25,000 invoice amt 2,500 got retained and amount paid to Supplier is 22,500
  69. 69. Retainage Release Select PO Number Select Invoice Type as Enter Invoice Amt to Retainage Release be Released Go to Match and Match the Agreement
  70. 70. Select The Po line to be Matched Release the Amount After Release go to Payment work Bench and Pay the Amount
  71. 71. Contract with Subway Contract amount- 35000, Prepaid amount-7000 Recoupment Rate 20% Amount Invoice Pre’ment Applied Amount paid Stage 1 20,000 20,000 4,000 16,000 Stage 2 15000 15,000 3,000 12,000 Total 35,000 7,000 28,000
  72. 72. Select “Complex Service Agreement” from list of Values Click
  73. 73. Enter Supplier and Supplier Site Go To
  74. 74. Enter Contract Click on Amount Update Enter Type as Fixed Price Enter Contract Services Need by Date
  75. 75. Select Advance amount is Prepaid amt Paid to Supplier Recoupment rate is 7000/35000*100
  76. 76. Select
  77. 77. After completion move to the Distributions Tab Give the Need by Date Enter Type as Split the Contract amt Lump Sum
  78. 78. Give Prepaid Account Click on
  79. 79. Complex Service Agreement has been Approved. Agreement NO is- 5547
  80. 80. Navigate to Invoice Workbench to Raise Prepaid Invoice Enter the Enter the Agreement No Invoice Amt Match Invoice with the Agreement
  81. 81. Select the Match Amount Click on Match after Selecting After Matching Pay the Invoice
  82. 82. Raise a Standard invoice and match with Agreement Enter the Enter the Agreement No Invoice Amt Match Invoice with the Agreement
  83. 83. Select the Match Amount Click on Match after Selecting
  84. 84. Prepayment Automatically applied according to Recoupment Rate Pay the Invoice
  85. 85. Total amount paid to Supplier is 20,000
  86. 86. Payments Manager • The Payments Manager enables you to complete a pay run from start to finish Payments. • The Payments Manager is comprised of the following components: Payments Dashboard Templates Payment Process Requests Payment Instructions Payments
  87. 87. Creating Payments through Payment Manager Navigation Select
  88. 88. Select
  89. 89. Select to create a new template
  90. 90. Enter Template Name Enter Supplier Name Select Pay group After Completion click on Payment Attributes Tab
  91. 91. After Completion click on Process Automation Tab Select Bank A/c and Exchange rate Type
  92. 92. View Select Apply When “Initiate Payment Process Request is complete” is selected System will Automatically create Format for the Payments Selected
  93. 93. Go to Select
  94. 94. Enter Request Name and Select Template from list of values Select User Rates Tab Information gets defaulted from Template
  95. 95. Select Submit “Requests” Enter exchange rate gets Generated
  96. 96. Report Gets Generated
  97. 97. Go back to Query the Process Request Click on
  98. 98. Click on submit Request gets generated Select to Add or Remove Payments
  99. 99. 3. Go to Payment Instructions Tab to complete the Payment 1. Query the Process Request 2. Status changes to Formatting
  100. 100. Query by Process Request Name and Creation Date Select
  101. 101. Select Continue the Apply
  102. 102. Go to Query “Process Request Name” Status got Confirmed
  103. 103. Navigate to Payments Overview to view Payments Made
  104. 104. AP/AR Netting • 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.
  105. 105. 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 receipt class. • Enable the Allow Payment of Unrelated Transactions Receivables System Option. • Define Document Sequence for Receipts and Payments.
  106. 106. Defining Netting Agreement Navigation Select
  107. 107. Select
  108. 108. Select Bank A/C Enter Operating Unit name and Rules And Agreement Name Select Invoice and Transaction Types Once Finished Click on Next
  109. 109. Select Supplier and Customer
  110. 110. Select Finish to Complete
  111. 111. Creating Netting Batch Navigation Select
  112. 112. Select
  113. 113. Select the Required Information and give the Batch Name Once Submitted go back to Netting Batch Once Finished Click window and Query the Netting Batch on Submit
  114. 114. Status got Complete Click on To View the Transactions Netted