We have 3 work benches in AP, and these three will control the AP

1. Supplier workbench
2. Invoice workbench
3. Payment workbench

1. Supplier work bench

a. Supplier data
b. Supplier types
c. Supplier Pay groups
d. Supplier Payments methods
e. Supplier bank accounts
2. Invoice work bench
Manual
a. Standard invoice (Positive)
b. Debit memo (Negative)
c. Credit memo (Negative)
d. Prepayment
Automatic
a. Interest invoice
b. Payment request
c. WHT (withholding tax)
3. Payment work bench
a. Single payment
b. Batch payment (Payment process request (PPR))
c. Refund to vendor

1. Manage reference data sets (RDS) (HCM)

TO maintain the setup data We use RDS

2. Manage locations (HCM)

3. Manage business units (HCM)

4. Assign business unit business function
Here we can build the relationship between Legal entity and primary ledger and we can assign the
functions to business unit

5. Manage payment terms

To Determine the due date of the invoice.

We need to assign payment term to set assignment. Set Assignment will be assign to BU (Like Common
SET)

Manage common options for payables and procurement

INVOICE OPTIONS:-
 o Required invoice group: Acts like invoice batch, in this you can add number of invoices
like Batch names (RT-123) under this batch we have so many invoices like (INV-
1,2,3,4)like this
o Allow document category override: It assigns a unique numbers like
1. AP INV-123-1000 (When you enter invoice with 123 Starting invoice number)
2. AP INV-124-2000 (When you enter invoice with 124 Starting invoice number)
o Allow adjustments to paid invoices: When I am creating invoice wrongly entered debit
account instead of advertisement expenses debited telephone expenses, if you enable this
you can edit the invoice.
o Allow remit to supplier override for third party payments: If you want to pay the
money to third party you can enable this ex: Invoices will be one supplier but payment
should pay to another party(third party) along with this supplier
o Recalculate invoice installments: When you change the due for payments then system
automatically change the dates also Ex: NET10 (FEB 23) change the payment term from
this to NET50(MAR20) then system will change the due date feb23 to mar 20
o Hold unmatched invoiced: We have PO and NON PO based invoice if you enable this it
holds the NON PO based invoices because it doesn’t have any matching PO
o Payment terms: It depends on suppliers
o Term data basis: In which date system will generate the payment is called Term data
basis we have below dates
1. Goods receipt date
2. Invoice receipt date
3. System date
4. Invoice date

Term D Basis G.R Date Inv. Date Inv. R Date Sys Date

NET30 01-JAN-19 05-JAN-19 10-JAN-19 15-JAN-19

 Due date 30-JAN-19 04-FEB-19 9-FEB-19 14-FEB-19

This option give importance is supplier level, if info not available in this then it go to invoice option
level

o Pay date basis: If you enable this on the date of discount date payment will run otherwise
normal payment
EX: Discount date NET 30, 5(%)/10(D) if you give this as payment term
01-Jan-2019
11-Jan-2019 (Discount date)
30-Jan-2019 (Net date)
o Accounting date base: Doubt

Note: In EBS we have profile option enable but in cloud we don’t have

 Under matching tab enable only one option like allow matching distribution override
 Under Discount tab enable only one option like always take discount
 Under prepayments tab give the payment terms and show available prepayments during invoice
entry

 Under interest tab enable the Create interest invoices and give the account of interest expenses
distribution and minimum interest amount is 10
 Under payment request give the payment terms
  Click on save and close

6. Manage payment options

 Go to set up and maintenance

 Set up: Financials
 Functional area: payables
 Task: %manage% payment% option%
 Select Manage payment options
 Scope should be our BU
 Enable all options under payment accounting and overrides

 Save and close

7. Manage business unit data access for users

Manage procurement Agent:-

Manage Supplier Model:-

Manage bank Account Creation

[Link] Payment Process Profile (PPP)

If you want to process the payment what account will follow and for which bank account to cost the
payment and other criteria rules will define here

[Link] Batch (PPR)

Bunch of Payment with single run, why should I go for the single check payment. I will the run the
payment batched daily basis, I want to print the 100 or 50 checks on the daily basis. Payment batch
always run based on due date. Payment batch main objective to reduce the manual work to make the
bunch of payments with in the single time.

Payment batch can run based on the below criteria

1. Pay through date

2. Supplier type
3. Supplier Name
4. Invoice batch/ Group name
5. Payment method (Most of the clients used through this)
6. Pay group
7. Business Unit
8. Currency
9. Legal entity (Fusion)
10. Source (Fusion)

It consist of below status or stages

1. Check Payment method 2. EFT (Electronic Fund transfer_

 Select  Select
 Build  Build
 Format  Format
 Print  File will generate and send to Banker
 Confirm  Confirm
 Select the payment batch form above criteria (invoice group name or payment method) it
will pic the all eligible invoices based on the today due date
 Then you can review the selected invoice
 You can modify the amount 100000 to 90000 or 50000 you can’t increase the amount but
you can decrease the amount
  You can add the invoice if it have any discounts
 You can remove any high volume invoice is there, you can pay in the next batch
 It have build to build the payment
 Then what is format to be consider the for the printing
 The check format will go to the printer to print the check
 That check send to banker then confirm

Pre requisites for Payment Batch

 Invoice should be validate It will work for payment batch

 Invoice Validated and Accounted It will work

 Only invoice header is entered and line forget It will not work for payment batch
 Only invoice header, line and distribution entered bud not validated. It will not work for payment
batch
 Entered the invoice header validated but kept on hold It will not work
 Partial invoice It will not work

It will consider invoice types for Payment Batch

 Standard
 Credit Memo
 Debit Memo
 Prepayments

Setups
1. Payment Methods
2. Payment Templates
3. Payment Format
4. Payment process Request(PPR)
5. Internal Bank accounts

Check books
 Distribution sets
You can use a Distribution Set to automatically enter distributions for an invoice when you are not
matching it to a purchase order

 It is available in AP and AR
 It is only user for Non Po or Non receipt invoices
 This function works at BU level and you can create N no of sets

Types of distribution sets

1. 100% (Full In EBS) Know the combination, amount and charge account
2. 0% (Skeleton In EBS) Know the combination, don’t know the amount and know the charge
account

Setups

1. Manage Distribution sets

2. Assign to customer site level

Assign in invoice

Payment process request (PPR)

If you want to frequently run the payment schedule the PPR .It is a program, we can done in two ways
manually and automatic means create the payment process request then proceed with the payment

Delete and cancel invoices

Delete

 Query the invoice in manage invoice page

 Go to actions and click on delete

Note: Never validated status invoices only we can delete, validated invoices we can’t delete)

Standard Invoice creation (Non PO)

 Click on create invoice (if you not assigned the Accounts Payable supervisor and specialist create
invoice will not appear)
 Give the details go to lines select the line matching option
o Identify PO : If you match the PO then here we have to give the PO numbers
o Why number of business units is showing Business unit LOV’s : If you assign the common
data set to Bu then that will show under this means which Units are assigned to Common sets
that all units are show under BU. If you don’t want to show all units you can create the
separate sets for separate BU or create the security rule/MOIC
o Supplier, supplier site and currency details will default from supplier site
o If you click on show more few details like General, Accounting, Tax and additional
information will show
o

o In the Accounting tab account information is available it comes from supplier site second
from common options
Payment to the invoice

Partial Payment invoice

Invoice creation via Spreadsheet (ADFDI)

Debit memo and credit memo

Negative amount invoice created by a supplier and sent to you to notify you of a
[Link] memo normally purchase Returns in AP

Credit Other than the purchase Returns

Liability Ac Dr
To Item Exp Cr

Payment to this invoice after adjust the debit memo

How to create automatic debit memo for return goods

1. Po created Receipt created Invoice created validated and accounted
Returns the goods to vendor and Debit memo automatically created
2. Po created Receipt created but invoice not created and validation and accounted is not done
Returns the goods to vendor and it should not create debit memo and foods will not adjust

Setups

1. Enable debit memo option at supplier site (Site -Purchase Tab-Selling CompanyIdentifier-(enable
Create Debit Memo From Return)
2. Create PO, GRN and Invoice
3. Return goods to vendor (system automatically create debit memo in AP)

Discounts invoice
Create invoice with 100000 due dates 30, if you pay 1-10 days then will get 3%, 1-15 days then will get
1%

Setups

1. Assign discount account at common options for payables and procurement setup
2. Enable Always discount option in invoice options (enable Always Take Discount)
3. Enable discount option at supplier level (invoice -Always take discount -Yes)
4. Manage payment terms (Discount)
 Assign discount option at invoice or supplier site level(Give the details and payment term
validate it
Go Actions and click on Manage Installments then you will see the due date)
 Prepayments
. Prepayment is nothing but advances to supplier for goods and services. A prepayment is
a payment you make to suppliers in anticipation of their provision of
goods or services. In Oracle Fusion Payables, a prepayment is a type of
invoice that you can apply to an outstanding invoice to reduce the invoice
amount.

You must fully pay a prepayment before you can apply it.

Invoice Currency, prepayment currency Must be same.

If a prepayment is mistakenly applied to an invoice, you can unapply the

prepayment. The prepayment is then available for application to another
invoice.
We have two types of prepayments

 Temporary
 Permanent
Steps
1. Create the prepayment invoice (Show more – Enable allow Prepayment application) If you we are
not enable prepayment record as a permanent prepayment.
2. Process the payments for prepayment invoices (show available prepayment During Prepayment)
3. Create standard invoice
4. Apply prepayment on standard invoice

Entries
1. Prepayment Invoice
Prepayment DR
Supplier liabilities CR
2. Prepayment release
 Supplier liabilities DR
Cash CR

Bills Payables
Bills payable refers to future-dated payments, where the liability is settled on a specific maturity date
instead of immediately

A bill payable is a document which shows the amount owed for goods or services received on credit
(meaning not paid at the time that the goods or services were received). The provider of the goods or
services is referred to as the supplier or vendor. Hence, a bill payable is also known as an unpaid vendor
invoice

Setups

1. Give the Bill Payable account in the common option for payables and procurement under default
distribution
2. Create payment method for bills payable
3. Crate standard invoice (While Creating We have go to I. Actions-> M. Instalments->Mention Bp)
4. Make payment include maturity date

ENTRIES FOR BILLS PAYABLES

1. Expenses Account DR

To Liability Account

[Link] Account DR

To Bills Payable Account

[Link] Payable Acc Dr

To Cash Clearing Acc

[Link] Acc DR

To Cash Clearing Acc CR

Withholding tax
When buying raw materials from an unregistered supplier, WHT allows you to withhold the tax amount
from the supplier's invoice and pay it directly to the tax authority, instead of the supplier. This process is
applied based on the country's tax regulations.

It’s all about calculating the tax and holding from the invoice the tax amount means if we are going to
create the transaction if withholding tax is applicable system will create the separate invoice with the tax
amount which we have to pay to tax authority
Setups

1. Create withholding tax authority as a supplier

2. Create payables calendar (special calendar (EBS)) (optional)
3. Manage withholding tax options
4. Manage tax codes

5. Create tax classification (Task group (EBS))

6. Assign tax group (tax classification ) to standard supplier

And site level we can do same

 7. Create standard invoice
8. System create WHT invoice with tax authority

Pay Alone
If an invoice has the Pay Alone option enabled, Payables creates a separate
payment for each invoice. If the Pay Alone option is not enabled for an
invoice, the invoice will be paid with other invoices for the same supplier site
on a single payment.
If we have 10 invoices with the same supplier and same site system will create the check for all 10
invoices it won’t create the one check to all 10 invoices

Setups

1. Enable Pay Alone option at supplier Level or Site Level also (Payment-payment attributes-
payment specification-enable payalone)
2. Create two invoices (
(invoice actions and click on manage installments in that you can see pay alone option enable
because we enabled at supplier level validate it )
3. Payment

Foreign currency / Multi currency invoice

payments in a currency different from the currency on the respective invoices.

1. Enable currency conversion rate entry, realized gain or loss and conversion rate variance gain loss
account details at common options for payables and procurement
2. Enable currency conversion rate entry at Payment Options
3. Enable multi-currency option for Bank account
4. Manage daily rates
5. Create invoice for foreign currency and payment
 o

Conversion rate variance gain and loss accounts will generate between the GRN and Invoice
(Invoice accounting).
o Realized Gain Distribution and loss Distribution accounts will generate between payment
(Payment accounting)
Save and close

[Link] currency conversion rete entry at Payment Options

Enable multi-currency option for Bank account

1. Manage daily rates

Create invoice and payment

Supplier Merge
Supplier sites can be merged within the same supplier or between two suppliers. Additionally,
the supplier merge process results in updates to transactions when the site referenced on an order, for
example, is merged to another site. Once a merge is completed, it cannot be undone. This works at BU

Once a merge is completed, it cannot be undone. The supplier is made inactive

 A duplicate supplier site was inadvertently created.

 The supplier moved to a new location.
 A division of a supplier was sold and the appropriate site must be
associated to the new supplier that acquired it.
ou have several options to choose from:

 All Invoices: Transfer all invoices.

 None: Do not transfer any invoices.
 Purchase Orders: Transfer only purchase orders.
 Purchase Orders and All Invoices: Transfer both purchase orders and all invoices.
 Purchase Orders and Unpaid Invoices: Transfer only purchase orders and unpaid
invoices.
 Unpaid Invoices: Transfer only unpaid invoice

Interest Invoice
If you enable automatic interest calculation for a supplier and pay an overdue
invoice, an invoice for the interest is automatically created and paid

Interest invoice Determine when Due date is finished and Suplier site level Interest invoice is enabled.

1. Enable “Create interest invoice” at invoice options

2. Enable Create interest invoice at supplier site level ( In EBS we enable at supplier level but in
fusion enable at supplier site level)
3. Define interest rates
4. Create invoice with past date with immediate payment term
5. Create Payment today

Recurring invoice:-
Invoices that need to be created and paid on regular basis are Recuring invoices.(ex;
Electricity bill, rent)
Setups

[Link] Payables calendar (Special calendar)

2. Create Recurring Invoice Template:

3. Manage recurring invoices from spread sheet

Manage Payables calendar (Special calendar)

2. Create Recurring Invoice Template:

TO Create Recurring Invoice First We need download ADFDI(Application Develop framework

Desktop Integration) and install in our local system.

NAV-Payables-Invoice-Task list-Create Recurring Invoice:-

 Go to Create invoice then click on generate, if template status is success no problem otherwise fix
the error and re generate the template
 Go back to the invoice work bench click on task list the click on Manage Invoice
 Query with invoice number (which is given in the recurring template as prefix)
 You can see the invoices

Stop and Void Payment

When you void a payment, Payables automatically reverses the accounting and payment records so
your general ledger will have the correct information, and so the status of the paid invoices is reset to
Unpaid. Payables also reverse any realized gains or losses on foreign currency invoices recorded as
paid by the payment.
Create invoice
Payment throw the check(check not yet deposited)
Then we realized supplier delivered the damaged goods and we want to stop the payment
If check in not deposited then you can cancel the payment

If status is negotiable then we can do the void or stop the payment because check is not deposited
If you run the remittance program then this status is gone
 Supplier Refund Process
Refund is the amount, which we have already paid to our Supplier against his services or Purchase Goods
and now we have taken back this Payment or some part of the Payment from this Supplier due to the
Excess Payment Issued by us or We got the Damage product received from the Supplier, or we are not
satisfied with his services.

Please find the below setups for Supplier Refund Process

1. Create Create Non PO based Invoice (100000)

2. Create Debit or Credit Memo (100000)
3. Pay the invoice Type should be refund and select the invoice go to Advanced tab enable account
and post to ledger option

Ex 2 : Prepayment is paid with 100000 and invoice created with 75000 now 25000 customer want to
refund the money

1. Create Prepayment 100000

2. Process Payment invoice 100000
3. Create standard invoice 75000
4. Apply 75000 prepayment to invoice
5. Create dummy invoice 25000 (In this which account you used (Supplier refund ) same account is
used in credit memo
6. Apply dummy invoice with 25000
7. Create credit memo -25000
8. Record Payment for Credit memo -25000 (Refund) (payment type as refund)
 Third Party Payment
A third-party payment is a payment that you make to a supplier on behalf of
another supplier.

Steps
[Link] Third Party Supplier
[Link] Invoice Option for third party payment (enable remit to Override for third party
payment)
[Link] Payment Option (Enable payee override for the third party Payment)
[Link] Relation ship with supplier(Site – Invoice – third party +)
[Link] invoice at old date
6. payment (payee name as third party)

 Save and Close

 Check will print on the payee name that payee is third person

Hold and Release

Manage Invoice Holds and Releases page to define holds and releases for
invoices. You can assign the holds that you define to invoices, and the
invoices can't be paid until you release the holds. if you assign a hold that
doesn't allow accounting to an invoice, you must remove the hold before
accounting entries can be created

Types of Holds

 Installments hold
 Line Variance hold
 Distribution variance hold
 Manual holds
  System holds

Create Hold Reason

Create Release Reason

Create invoice, Place Hold Reason

 Create the invoice from work bench and you can keep it on hold
 Validate it and go to Actions click on Manage holds

Tolerance
Invoice Tolerance Determine For variance Between Invoice the document which you match them
Such as Purchase order

If you specify a percentage tolerance of zero, variance isn't allowed. If you

want a low tolerance, specify a small percentage. If an active tolerance
doesn't have a value, then infinite variance is allowed.

Setup

1. Manage Tolerance
2. Manage invoice Options.
3. Assign at supplier site
Save and close

Manage invoice

Manage supplier _site -invoice-