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Sample Oracle Payable User Manual


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Sample Oracle Payable User Manual

  1. 1. XYZ CO. LTD.User ManualManual Account Payable Invoice CreationSuvrendu Bose[Pick the date][Type the abstract of the document here. The abstract is typically a short summary of the contentsof the document. Type the abstract of the document here. The abstract is typically a short summaryof the contents of the document.]
  2. 2. Document Name: User ManualProcess Name: Manual Accounts Payable Invoice CreationIssue DateDocument Ref. No.:Version:Created By:Reviewed By:Approved By:Distribution List:
  3. 3. Table of Content1. Purpose2. Scope3. List of Abbreviation4. Basic Business Need5. Process Overview6. Business Rulesa. Applicabilityb. Restrictionc. Rule Description7. Procedures8. Related Documents9. Related Process10. Process Owner11. Roles & Responsibilities12. Training Requirement13. Appendixa. List of Formsb. Help documentsc. Dos & Don’ts
  4. 4. 1. PurposeThe purpose of this document is to describe the process and procedures to be followed bythe user to carry out the “Manual Invoice Creation” in Oracle E-Business Suite R – 12.2. ScopeThis process and procedure applicable only for carry out “Manual Invoice Creation” inOracle E-Business suite R-12, version 12.1.1 and above.3. List of Abbreviations(List all abbreviations used in this document)4. Basic Business NeedsThe situation may arise that the organisation has to settle vendors’ liability for which noapproved purchase order is available in the system. In order to do so the organisation mayhave to apply the provision of Indian Service Tax and/or Indian Income Tax acts. Service taxwill be applicable if the vendor is registered under service tax and charged service tax in hisinvoice. Indian Income Tax Act will be applicable for deduction of tax at source. Thissituation will arise under following circumstances:a. Approved purchased order is not available in the systemb. Transaction does not require issue of approved PO from system as per DOAMc. There is no supply of goods for which a Inventory need to be maintainedd. The transaction is not of a capital nature.5. Process OverviewThe process is summarised as follows:a. The department/function, procure the goods or obtain any services, will forwardthe vendor invoice to the AP department.b. The invoice should accompany the copy of the approved manual PO/WO andcertificate of completion issued by the concerned department.c. Upon receiving the invoice along with all required supporting document the APclerk will verify manually the invoice and ensure the arithmetical accuracy.d. He will also ensure that a valid Supplier code and site is available in the system.e. Supplier’s additional information (IL TAX related) is appropriately created in thesystem.f. AP clerk will create an invoice in the AP module of the application. Whilecreating the manual invoice he should follow the procedure explained in the“Procedure” section of this document.g. Upon validation of the Invoice and on initiating approval for the Invoice thisInvoice will be forwarded to the Auditor for approval.
  5. 5. h. The approver will have the option for either Approving / Rejecting thetransaction or for requesting additional information for this transaction.i. After the Auditor approves the Invoice the Invoice will be routed to the APManager for Approval.j. Once the Invoice has been approved by all the approval authorities thescheduled create accounting process program will account for the Invoice.For detail overview of the process please refers Business Process Diagram (BPD) “ManualAP Invoice Process” (Ref. No. BPD/AP/001)
  6. 6. 6. Business Rulesa. Applicabilityi) This process is applicable only for non capital nature procurementii) Service Tax will be applicable only for invoice of services.iii) Tax deducted at source (TDS) will be applicable only for invoice ofservices.b. Restrictioni) This process is not applicable for creation of supplier invoice forwhich a PO/or GRN is available.ii) User should not use AP Accrual account code in the distribution ofthe invoice.c. Rule Descriptioni) NA.7. ProcedureThis section describes the steps to be followed by the user in the Oracle Application withdetail screen shots. After successful log in into the Oracle Application the user has tofollow the following navigation to create a manual/standalone invoice in the system.Prerequisite: Before navigating to the application the user should have following: Original copy of the vendor invoice. Copy of the manual PO/WO. Certificate of completion/ Proof of receipt of goods.Caution: All the preceding tasks as shown in the process diagram must be completedbefore performing this taskNavigation: India Local Payables  Oracle Payables  Invoices  Entry  InvoicesAfter successful navigation “Invoice Workbench” form will open. All the invoices have to beentered in this form.Remember: Following steps to be followed only for creating an invoice which is receivedfrom a supplier that will not be matched either to a purchase order or a receipt.Service Tax can only be accounted and transacted with the standalone invoices. Adding ofnon service tax related taxes will result in expensing out the tax amount attached to theInvoice line.> Navigate to the Invoice Workbench
  7. 7. 1. Accept the default for Operating Unit or select the required operating unit from LOV.2. Invoice Type always is “Standard”.3. Enter either Supplier name or supplier no and select supplier site.4. Enter supplier’s Invoice Date, Invoice Number, Invoice Currency, and Invoice Amount(Invoice amount should be total amount of the invoice (including service tax).1 2
  8. 8. 5. Enter GL Date (the date on which you want to account for this transaction), PaymentCurrency and Description. This description will appear in the right bottom corner of theInvoice workbench.6. Review and update the Terms Date, Payment Terms, Pay Group, Payment Method, asnecessary. Remember to keep Match action always “Purchase Order”.7. Payables automatically schedule payment of the invoice using the Invoice Amount, Terms,and Terms Date of the header fields. Enter or review the defaults for these fields.8. Enter other invoice header information as required.9. To enter invoice lines detail, select the Lines Tab. Remember to enter an invoice line for eachline that appears on a suppliers invoice.9
  9. 9. 10. Enter the line Type always “Item”.11. Enter the basic Amount (without taxes) of the invoice line as shown on the suppliersinvoice.12. Enter a Description of the item you are invoicing.13. Accept the default GL Date or change as necessary14. To enter distribution information for the line click on “Distributions” button.1415
  10. 10. 15. Enter accounting code combination in “Account” field. Don’t use “AP Accrual” account forany manual/stand alone invoice. It will cause error for AP & GL reconciliation for AP Accrualaccount.16. To enter TDS information scroll to the right.17. To enter WCT/TDS Tax Type click on extreme right box marked ().18. Separate entry form “Additional information for India” as shown in the screen shot willopen.19. Select applicable TDS/WCT section type and click “OK” button.20. Save your work and close the Distributions window to back to the invoice workbench.21.22. Enter tax lines for the invoice. You can enter tax lines: by clicking on Tools – IL Tax details23. Choose Tax Type ‘Service Tax’ and enter a Precedence for calculation24. Choose Tax Type ‘Service Tax- Cess’ and enter a Precedence depending on the ‘Service TaxType’ for calculation25. Choose Tax Type ‘Service Tax- SHE Cess’ and enter a Precedence depending on the ‘ServiceTax Type’ for calculation26. Save your work27. Tax Lines will be inserted on saving the Record. Enter other invoice line information asrequired (WCT/TDS Tax Type)28. Click on ‘Actions – Validate’ to Validate the record entered29. Credit Memo on Trading Partner / Standard Invoice on the Tax Authority is generated30. If Invoice put on hold for some discrepancy make the relevant changes and release the hold31. Initiate the Invoice for Approval32. Invoice will pass through the Approval workflow33. After Approval Create Accounting process will generate accounting for the Invoice1718
  11. 11. TDS on Provisions> Create an Invoice with Zero Amount.> Create two invoice distributions linesThe first with provision amount. Assign TDS Tax to this invoice lineThe second line should be created negative of the provision amount. This should not haveany TDS Tax assigned> The first line should have the GL Date of the last date of the last period of the financialyear and the second should GL Date as first day of the first period of the new financial yearThis will automate provision creation and reversal. At the same TDS would be calculated forthe provisioned amount.(Screen Shots to be added)8. Related Documentsa. Standard Operating Practice (SOP) of Accounts Payableb. Delegation of Authority Matrix (DOAM)c. Corporate Accounting Manual9. Related ProcessA. Upstream Processi. Issue of Manual PO/WOii. Issue of Certificate of Completion/ Issue of Proof of receipt of GoodsB. Downstream Processi. Release of Vendor Paymentii. TDS Settlementiii. Service Tax Settlement10. Process OwnerPayable manager of Corporate Accounts will be the Owner of this process.11. Roles & Responsibilities(This Section will describe the roles and responsibilities of all the related stockholders)12. Training Requirement(This section will describe the training requirement and standard of proficiency of theusers)13. Appendix