R12 AP New Features
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This document provides an overview and instructions for key features in Oracle Payables Release 12, including: 1. Suppliers are now defined as Trading Community Architecture (TCA) parties with supplier sites as TCA party sites, allowing a single supplier address and contact to be leveraged across organizations. 2. Banks and bank accounts can now be defined and managed centrally across multiple Oracle modules. A single legal entity owns each bank account and organizations are granted usage rights. 3. Retainage allows a percentage of payments to suppliers to be withheld until project completion, then later released via a retainage release invoice. 4. Payments Manager provides a centralized workflow for creating payment templates, requests,
R12 AP New Features
- 1. RELEASE 12 : PAYABLES
- 3. Agenda Suppliers Bank’s Retainage Recoupment Payments Manager AP/AR Netting
- 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.
- 6. Creating Supplier Creating Supplier
- 7. Select
- 8. Click Apply to continue Enter Header Level Info
- 9. Select Address book to Insert Site Address
- 10. New Address
- 11. Site Name
- 15. Click on Create to Create a new Supplier Bank A/c
- 17. 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.
- 19. 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”
- 20. Give Required Information Click on Go
- 21. Click on Update
- 22. Select
- 23. Click on Run Wizard
- 24. Select Add Legal Entities to Give access to Bank Accounts
- 25. Click on apply after Adding Legal Entities
- 26. Creating Bank and Bank Branches in Payables Navigation for Defining Banks Select
- 27. Select
- 28. Click on Create
- 29. Enter Bank information Select
- 30. Click on Create to Add Address
- 31. Click on Apply to Save the informatio n entered
- 32. Click
- 33. Click Finish after entering contact info Click on Create to enter a Contact info
- 34. Creating Bank Branches Click on Bank Braches Tab Create new Bank Branches
- 35. Enter Bank Name and Country Click Continue
- 36. Enter Branch Information Select Save and Next
- 37. Select Create to Fill Bank Branch Address
- 38. Enter Branch information Click on Apply
- 39. Select
- 40. Click Finish after entering Contact’s Click on Create Contact to add Contact
- 41. Creating Bank Account’s Navigation Select
- 42. Create New Bank Accounts
- 43. Enter Bank And Branch Name Click Continue
- 44. 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.
- 45. Select Save and Next to Continue Enter Bank Account Information
- 46. Select Save and Next to Continue Enter Required Information rest all are Optional
- 47. Select to Grant Access to Operating Unit’s
- 48. Enter Account use and Operating Unit Select Continue
- 49. Enter Payment Method and Category
- 51. Click on Add Organization Access to Give bank account access to Multiple Operating Units Click Save and Next to Continue
- 52. Select Finish to Save your work Click on Create Contact to enter Contact info of Bank account
- 53. Select Select the Bank Account
- 54. Select
- 55. Select Apply Enter Required Information
- 56. Payment Doc got Created
- 57. 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
- 58. 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”
- 59. Required Setups Enter Retainage A/c in Financial Options
- 60. 1. Navigate to Supplier’s Window 3. Select 2. Select 4. Give Retainage Rate
- 61. Create Complex Service Agreement in Purchasing Navigation Select
- 62. Select “Complex Service Agreement” from list of Values Click
- 63. Enter Supplier and Supplier Site Go To
- 64. Enter Contract Amount Click on Update Enter Type as Fixed Price Enter Contract Services Need by Date
- 65. Select Enter Retainage Rate Enter Charge Account
- 66. Select
- 67. Select Split to Split the Contract into Stages
- 68. After completion move to the Distributions Tab Give the Need by Date Enter Type as Split the Contract amt Lump Sum
- 69. After Completion select Submit
- 70. Complex Service Agreement has been Approved. Agreement NO is- 5546
- 71. Navigate to Invoice Workbench to Raise Invoice Enter the Enter the Agreement No Invoice Amt Match Invoice with the Agreement
- 72. Select the Match Amount Click on Match after Selecting
- 73. 10 percent of the Total amt got automatically got Retained Go to Actions and Pay the Invoice
- 74. Out of 25,000 invoice amt 2,500 got retained and amount paid to Supplier is 22,500
- 75. Retainage Release Select PO Number Select Invoice Type as Enter Invoice Amt to Retainage Release be Released Go to Match and Match the Agreement
- 76. Select The Po line to be Matched Release the Amount After Release go to Payment work Bench and Pay the Amount
- 77. 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
- 78. Select “Complex Service Agreement” from list of Values Click
- 79. Enter Supplier and Supplier Site Go To
- 80. Enter Contract Click on Amount Update Enter Type as Fixed Price Enter Contract Services Need by Date
- 81. Select Advance amount is Prepaid amt Paid to Supplier Recoupment rate is 7000/35000*100
- 82. Select
- 83. After completion move to the Distributions Tab Give the Need by Date Enter Type as Split the Contract amt Lump Sum
- 84. Give Prepaid Account Click on
- 85. Complex Service Agreement has been Approved. Agreement NO is- 5547
- 86. Navigate to Invoice Workbench to Raise Prepaid Invoice Enter the Enter the Agreement No Invoice Amt Match Invoice with the Agreement
- 87. Select the Match Amount Click on Match after Selecting After Matching Pay the Invoice
- 88. Raise a Standard invoice and match with Agreement Enter the Enter the Agreement No Invoice Amt Match Invoice with the Agreement
- 89. Select the Match Amount Click on Match after Selecting
- 90. Prepayment Automatically applied according to Recoupment Rate Pay the Invoice
- 91. Total amount paid to Supplier is 20,000
- 92. 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
- 93. Creating Payments through Payment Manager Navigation Select
- 94. Select
- 95. Select to create a new template
- 96. Enter Template Name Enter Supplier Name Select Pay group After Completion click on Payment Attributes Tab
- 97. After Completion click on Process Automation Tab Select Bank A/c and Exchange rate Type
- 98. View Select Apply When “Initiate Payment Process Request is complete” is selected System will Automatically create Format for the Payments Selected
- 99. Go to Select
- 100. Enter Request Name and Select Template from list of values Select User Rates Tab Information gets defaulted from Template
- 101. Select Submit “Requests” Enter exchange rate gets Generated
- 103. Go back to Query the Process Request Click on
- 104. Click on submit Request gets generated Select to Add or Remove Payments
- 105. 3. Go to Payment Instructions Tab to complete the Payment 1. Query the Process Request 2. Status changes to Formatting
- 106. Query by Process Request Name and Creation Date Select
- 108. Go to Query “Process Request Name” Status got Confirmed
- 109. Navigate to Payments Overview to view Payments Made
- 110. 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.
- 111. 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.
- 112. Defining Netting Agreement Navigation Select
- 113. Select
- 114. Select Bank A/C Enter Operating Unit name and Rules And Agreement Name Select Invoice and Transaction Types Once Finished Click on Next
- 115. Select Supplier and Customer
- 116. Select Finish to Complete
- 117. Creating Netting Batch Navigation Select
- 118. Select
- 119. 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
- 120. Status got Complete Click on To View the Transactions Netted