1. Fewer Clients, More Attention
Basic Accounts Payables
Business Flow
Venkatesh T
2. Only Debts are maintained in Payables
i.e., Recording of Liability on the goods and services we receive.
Setting up Suppliers
Entering and Approving Invoice
Paying Invoices
Creating Accounting entries
Sending transactions to General Ledger
Clearing form CM
General Flow
3. Basic Accounting
Slide 3 Confidential and Proprietary
Basic understanding of the concept of Accountancy like Asset, Liability, Expense
and Revenue
Owners Equity -> Credit
Assets -> Debit
Liability -> Credit
Expense -> Debit
Revenue -> Credit
Trail Balance Report
Financial Statements
Balance Sheet
P & L
Cash flow
Revenue – Expenses = Income
Assets = Liability+/-Assets
4. A Small Game
Slide 4 Confidential and Proprietary
UST Pays Salary 22000 Rs at the End of every month to you (Siva) and credit the
amount into your Bank Account (State Bank of India – SBI)
How many SOB and LE’s ?
How many BG’s?
You (Siva) Maintain Your Bank Account(SBI) and You may maintain your Company
Account (UST)
UST may have the Employee Account (Siva Account) and must have the Bank
Account (SBI Account)
The Bank will maintain both your account (Siva Account) and your Employer
Account(UST Account)
5. Golden Rule
Debit the Receiver
Credit the Giver
Debit what comes in Debit all Expenses and Losses
Credit what goes out Credit all Revenues and Income
Accounting Rules
Nominal Account
Real Account
Personal Account Impersonal Account
7. Key Features
• Create and Manage Suppliers
• General Bank, Invoice and Payment Workbench Setups
• Enter, Review and Approve invoices
• Pay invoices and reconcile to the bank records
• Reporting and Accounting
• Payments
• Create journals and posting to General Ledger
• Tax Management
• Integrating with other modules
9. Oracle Payables Overview
Enter Supplier Enter invoice Approve invoice
Create PO
Match to PO
Pay invoice
Create journal entries
Enter Requisition
10. How Invoices are part of the Payable Process
Pay Invoice
Invoice
Supplier
11. The Key Features in Invoice Process
• Create an invoice batch
• Enter basic Invoice information
• Enter invoice distributions and create distribution sets
• Match invoices to purchase order
• Invoice matching to Receipts
• Enter credit and debit invoices
• Approve Invoices
• Schedule Payments
18. Matching Invoices to PO
Batch Invoices Enter invoice Match Invoices to PO
Approve Invoice
View Invoice
Post Invoice
File Invoice
Pay Invoice
19. Reporting and Accounting
• Create accounting entries within Oracle payables prior to
transferring them to your general ledger
• View complete accounting for your payables
transactions within the subledger and make required
corrections and adjustments
• Use existing function security to control which users can
correct accounting entries
• Accounted field in the Invoices and Payments windows
shows the status of the transaction
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20. Credit/Debit Memo
Credit Memo Negative amount Invoice created by
a supplier and sent to you to notify
you of a credit
Debit Memo Negative amount Invoice created
by you and sent to a Supplier to notify the
Supplier of a credit you are
recording. Usually sent with a Note
explaining the Debit memo
•Match a credit and debit memo with an existing invoice /multiple invoices
•Payables automatically copies the accounting information and create invoice
distribution for the credit/debit memo
•Credit/debit memo are netted with the basic invoices at payment time
21. The Expense Report Process
Enter Expense
Reports
Apply Advances
Create invoices by
submitting payable
invoice import
Payments to Employees
22. Setting Up Expense Report Entry
Enter Employees
and locations
Define Employee
as supplier
Define Expense
Report Template
23. Recurring Invoices
• Define Special Calendar names
• Define Recurring Invoices Template
• Enter Recurring Invoice information
• Create Recurring Invoices
• Review Recurring Invoices
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24. Recurring Invoices
With Recurring Invoice template you can:
• Specify the interval for which invoices will be
created
• Create up to two special one-time invoice amounts
of a nonstandard amount, such as a deposit or
balloon payment
• Define recurring invoices to increase or decrease by
a fixed percentage from period to period
25. Hold Types
Review the Hold types Oracle Payables automatically places during approval
27. Invoice Inquiry: Overview
Batch Invoices Enter invoice Match Invoices to PO
Approve Invoice
View Invoice
Post Invoice
File Invoice
Pay Invoice
Receive Invoices
in the mail
28. How Payments are part of the Payable Process
•Oracle Payables Payment Method
•Oracle Payables Payment Disbursement Types
•Payment Batches : Overview
•Payment Workbench
•Cancelling and reversing payments
•Payment Inquiry
•Accounting
•Transfer to GL
•Journal Import
•Posting
33. Flow of Default Values
Financial Options
Payable Options
Supplier
Supplier Site
Invoice
Invoice Invoice
Distribution Line Scheduled Payment Line
Financial Options are shared by the Oracle Payables, Purchasing and
Assets.
#35:Accounting:
Future Period is defaulted from the Calendar creation and you cannot change the Future Period.
GL Accounts: We have different types of accounts to define for the tracking of the transactions.
Liability is the account where we store the details for which we are liable to pay the supplier.
Prepayment is the account to take the track of the invoices of Supplier site. Financials options defaults to new suppliers, and the supplier value is defaulted to new supplier sites
Future dated payment account has the details of the future dated payments. Suppose if you relieve the liability payment time, i.e.; if supplier given you 30 days for payment and you paid on the first day then for 29 days this is your asset account and if you relieve liability at future dated payment maturity, then this should be a liability account for example you given the check for the date in the upcoming month then the account acts as liability account till that date in the next month.
Discount Taken is on payments is recorded in this account.
PO Rate Variance Gain/Loss is the purchase order rate variance gain/loss for your inventory items. The variance is calculated between the invoice and either the PO or Invoice on the way you match.
These accounts are not used to record the variances in the expense items.
Any exchange rate variance for the expense items is recorded to the charge account of the purchase order.
Payables calculate these amounts during the Invoice Validation.
Expenses Clearing Account is used when you use the Company Payment option of Oracle Internet Expenses
Payable uses this account as a temporary account to record the credit card transaction activity
Payable credits this account with offsets to the debit entries account when you submit expense Report Import for an expense report entered in the I expenses.
Miscellaneous is used when invoices submitted via I supplier and XML gate way.
