This Paper was presented by me in Collaborate 2016 Conference. A research based presentation for Oracle Payables discounts, Which is a common issue across organizations as it involves multiple root causes.

1. Session ID:
Prepared by:
Maximize Your Discounts in
Oracle Payables.
10272
Venkata Pavan Boyapati
Wendys
Discounts once lost are lost forever

2. Pavan Boyapati
• Professional Summary :
– 9 years of experience in Oracle Applications
– Financials & Supply Chain modules
– Complex Integrations
– Emerging technologies within Enterprise applications
– Currently working at Wendys as a Senior Developer
• Previous Experience:
– Hitachi Consulting
– Dell
– Oracle Consulting
– Worthington Industries
2

3. Agenda
• Payables - Integrations Impacting Discounts
• Payables - Discount Setups and Defaulting Rules
• Timing of Invoice Payments
• Report - Discount Info Analytics & Audit
3

4. Discounts
• This presentation will provide an in-depth overview of the
Discounts process and capabilities within the Oracle
Payables module.
• Within many large organizations various manual,
automated, and scheduled integration processes that
support the payment process can encounter errors or
issues.
• These unplanned and un-managed delays can cause the
discount savings opportunity to be missed.
4

5. Payables - Integrations Impacting Discounts
• Its important that we first understand the flow of the
Invoice from the supplier to Oracle EBS
• Multiple tools and processes can touch that data along
the way during transform, transmit and load
• Delays in Integration causes delay for the Invoice
creation in Oracle
• Business users and Payables Manager often will have
low or zero visibility to the failure points.
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6. 6
Payables - Integrations Impacting Discounts
O r g a n i z a t i o n N e t w o r k
Oracle
Payablessystem
Interface
E comm
Gateway
PLSQL
XML
Gateway
WF/
Business
Event
Oracle ODI
FTP
Oracle SOA
Informatica
Web
Services
EDI
Partners
OSN
Invoice
Management
System
Direct
SFTP
• Some of the Tools and Technologies that play a key role in transmitting
Invoices.

7. Best Practices
• Business Validations:
– Avoid standard/ business validations within the technical
integration process
– A business validation within the technical integration process
will have possibility of raising exceptions with no visibility for
the business users
– It is better to validate and error within the Oracle interface
tables than in the integration/communication process
– Errors in the interface tables can be more easily corrected by
business
• Technical Validations:
– Validations related to length/format should happen within the
technical integration process
– These technical errors require a process to notify the
appropriate support team(s).
7

8. • Keep the integration points (touch points) and
transformations to the minimum
• Whenever possible, ask to receive the data from a source
system in the desired format - this means minimum
integration changes and less chance of errors
• Ensure that any technical errors are pro-actively reported
and fixed, don’t let them sit idle in staging tables
• Manage and monitor the volume of interface exceptions and
the time between Invoice transmit dates and Invoice
creation dates in Oracle
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Best Practices continued

9. Payables - Discount Setups and Defaulting Rules
• Payables uses the Payment Terms on the Invoice to
determine if/when to pay at the discounted amount
• Numerous other setups can also impact the Discount –
these will be discussed below
• Remember – discounts can also be manually applied
directly to the invoice within the Scheduled Payment tab
when discount terms are not available on Invoice
9

10. Setups
• There are several key setups related to the Discounts
process within Oracle Payables:
– Payment Terms
– Terms Date Basis
– Pay Date basis
– Always take Discount
– Recalculate Scheduled Payment
• Some are available at different levels:
– Payables System Setup
– Payables Options
– Supplier
– Supplier Site
10

11. Payment Terms
• Payment terms can have one or more payment terms lines,
each of which creates one scheduled payment in Invoice.
Navigation : Setup -> Invoice -> Payment Terms
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• Cut-off Day
• % Due/Amount
• Special Calendar
• Fixed Date
• Days
• Day Of Month
• Months Ahead

12. 12
Payment Terms
Payment terms have three discount tabs with similar options :
• First Discount
• Second Discount
• Third Discount
• %Discount
• Discount Amount
• Discount Criteria

13. Term Date basis
Payables has following available options for deriving Terms Date Basis :
– System
– Goods Received.
– Invoice
– Invoice Received
13

14. Pay Date basis
Pay Date Basis for a supplier is used to determine the date for
invoice selection during payments using PPR in oracle Payments.
• Due
• Discount
14

15. Always Take Discount
• Enable “Always Take Discount” If we want to avail
discount irrespective when we pay invoice.
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16. 16
• Payables automatically recalculates scheduled payments of
invoices during Invoice Validation.
• During recalculation, Payables uses the most recent of the
available “start date options” and the most favorable of the
available payment terms.
Recalculate Scheduled Payment

17. Recalculate Scheduled Payment
• During Recalculation of Scheduled Payments, Following are the
start date options that payable system looks at.
• Favorable of the Payment terms is identified based on the Rank
assigned to payment terms.
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18. Defaulting rules
• From Above we have seen all setup options impacting
discounts. In this section we will see how these options default
at different levels.
18
Payables System Setup
Supplier Site
Supplier
Payables options
Invoice/Payment
• When a new supplier is created by Data librarian, we should
make sure right values defaulted at Supplier and Supplier Site
level.

19. Payables system setup
19
• Payables System setup is a one time setup and it is specific to
instance.
Navigation : Setup -> options -> Payables System Setup

20. Payables Options
20
• Payables options should be defined for each operating unit.
Discount related options are under ‘Supplier’ and ‘Invoice’ Tab
Navigation : Setup -> options -> Payables Options ->
Supplier/invoice tab

21. Supplier and Supplier site
21
• Discount options for both Supplier and Supplier site level.
Navigation : Suppliers -> Entry -> Invoice Management

22. Setup Flow
22
Payables System Setup
Supplier Site
Supplier
Payables options
Invoice/Payment

23. Timing of Invoice Payments
• Payments in Oracle Payables is the last step in the cycle to
avail discounts and timing of Payments plays a vital role.
• Setups that control discounts for Payments
o Pay Date Basis
o Always Take Discount
• Options on Payment Process Request that impact selection of
Invoices with Discounts
o Pay From Date
o Pay Through Date
o Include Only Due
o Payment Date
23

24. • Payment Process request also has others fields that impacts Document
Selection Criteria.
• If Payment Process Request is scheduled using templates then assign
‘Additional Pay Through Days’ to determine default ‘Pay Through
Date’.
24
Timing of Invoice Payments continued

25. 25
Timing of Invoice Payments continued
With all the options discussed, consider an example Invoice ready for
payment with following Installments :
• Due date of Mar 30, 2016
• First discount date of Feb 15, 2016, for 350 USD
• Second discount date of Feb 25, 2016, for 200 USD
Options on Supplier Site and Payment Process Request :
• ‘Pay Date Basis’ on Supplier site is ‘Discount’
• ‘Include Only Due’ is not checked in Payment Process Request
Combinations of Pay Through Date, Payment Date, and Always take discount options will see
on scenario basis.

26. 26
Pay Through
Date
Payment
Date
Always
Take Disc
Option
Installment
Selected ?
Discount Taken Amount
1 Feb 14,2016 Feb 17,2016 Yes/No No, PTD is before
the discount date.
None, Installment not selected.
2 Feb 15,2016 Feb 17,2016 Yes/No Yes, PTD is on/after
the discount date.
Second Discount Date is eligible as per
Payment Date – 200 USD
3 Feb 15,2016 Feb 26,2016 No Yes None, Payment Date is after Discount Dates
and ‘Always Take Discount’ option is
disabled
4 Feb 15,2016 Feb 26,2016 Yes Yes 350 USD, Although payment date is after
discount dates, first discount is taken
because of option ‘Always Take Discount’
5 Feb 15,2016 Mar 31,2016 No Yes None, Payment Date is after Due Date and
‘Always Take Discount’ option is disabled
6 Feb 15,2016 Mar 31,2016 Yes Yes 350 USD, Although payment date is after
Due Date, first discount is taken because of
option ‘Always Take Discount’
Due date of Mar 30, 2016
• First discount date of Feb 15, 2016, for 350 USD
• Second discount date of Feb 25, 2016, for 200 USD
Timing of Invoice Payments continued

27. Analytics and Audit Report
• Standard Reports that are available in Oracle today will
display the discounts at the transaction level:
– Discounts Available Report
– Discounts Taken and Lost Report
• To have more analytical information and details about
discounts, I have created a custom report to show the
volume of certain data as well as the setups related to
Discounts.
• My custom report has two sections :
– Analytics
– Audit
• This code needs changes based on the customizations
for your company and currency conversion.
27

28. Concurrent Program
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29. Output and Code
29
• Plsql code is used to generate XML and is used as data source for
report layout.
• Code uses all standard tables from Payables System.
• Code is developed based on Vision Instance.

30. Report Output - Analytics
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31. 31
Report Output - Analytics

32. 32
Report Output - Audit

33. 33
Report Output - Audit

34. “Discount Info” Tables
AP_PRODUCT_SETUP:
AP_PRODUCT_SETUP table stores all information from
Payables System Setup. As this setup is at instance level there
will only be one record in the table.
AP_SYSTEM_PARAMETERS_ALL:
AP_SYSTEM_PARAMETERS_ALL table contains Payables
Options for all the operating units defined in the application. We
can see one record for each Operating unit.
AP_TERMS_VL and AP_TERMS_LINES:
AP_TERMS_VL contains payment terms header level
information and AP_TERMS_LINES contains line level
information.
34

35. AP_SUPPLIERS:
AP_SUPPLIERS stores information about Supplier Header level
attributes.
AP_SUPPLIER_SITES_ALL:
AP_SUPPLIER_SITES_ALL stores information about Supplier
Site level attributes at Operating Unit level.
AP_INVOICES_ALL:
AP_INVOICES_ALL contains information about Invoices. There is
one row for each Invoice we get.
AP_PAYMENT_SCHEDULES_ALL:
AP_PAYMENT_SCHEDULES_ALL table stores information about
scheduled payment information/Installments. This table contains
'Discount_date' and 'Discount_Amount_Available' fields.
35
“Discount Info” Tables continued

36. AP_INVOICE_PAYMENTS_ALL:
• AP_INVOICE_PAYMENTS_ALL contains records of invoice
payments that we made to suppliers.
• There is one row for each payment against an invoice and this
table has 'Discount_lost' and 'Discount_taken' fields that gets
populated during the Payment.
• Oracle Payables application updates this table when we confirm
an automatic payment batch, enter a manual payment, or
process a Quick payment.
• When we void a payment, Oracle Payables inserts an additional
payment line that is the negative of the original payment line.
36
“Discount Info” Tables continued

37. Maximizing Discounts in Oracle Payables
• Discounts once lost are lost forever