Oracle Procure-to-Pay Guide Book

Acknowledgments ix

Introduction x

1 Procure-to-Pay Overview 1

The Procure-to-Pay Family 2

Purchasing 2

iProcurement 2

iSupplier Portal 3

Services Procurement 3

Sourcing 3

Procurement Contracts 3

Approval Management 3

E-Business Tax 3

iExpenses 3

Payables 3

Payments 4

Subledger Accounting 4

A Word about Conversions 4

Converting Suppliers 4

Open Invoices 4

Purchasing Conversions 5

2 Purchasing Setups 7

Setups Completed with Other Modules 8

Locations for Delivery (Conditionally Required) 8

Organization Classification (Required) 10

Inventory Parameters 12

Costing Information 12

Revision, Lot, Serial, and LPN 12

Other Accounts 12

Defining Item Number Format in EBS (Optional) 13

Units of Measure (Conditionally Required) 13

Setting Up Classes 14

Adding Additional Units of Measure to a Class 14

Unit of Measure Conversions 15

Creating Categories for Purchasing (Required) 16

Using Employees in Purchasing (Required) 19

Setting Up Approvers for Requisitions and Purchase Orders (Required) 20

Creating Buyers (Required) 22

Purchasing Options (Required) 24

Document Controls 24

Document Defaults 27

Document Numbering 30

Receiving Options 30

Accounting Options Available with Receiving Transactions 33

Cost Factors for Receipts 33

Financial Options (Required) 33

Line Types (Conditionally Required) 33

Requisition Templates (Optional) 34

Document Types (Conditionally Required) 35

Account Generator (Conditionally Required) 37

3 Processing Purchasing Documents 39

Purchasing Documents 40

Requests for Quote 40

Requisitions 40

Purchase Orders and Agreements 40

Releases 40

Purchasing Documents, Step-by-Step41

Requisitions 41

Using the Supplier Item Catalog to Create Requisition Lines 45

Requisition Distributions 47

Outside Processing 49

Defaulting Requisition Information 49

Approving Purchasing Documents 50

Approving a Requisition 51

Controlling Requisitions 52

Creating Purchase Orders from Requisitions 53

AutoCreate 54

Purchasing Documents 60

Setting Purchase Order Preferences 67

Approving Purchasing Orders 68

Controlling Purchasing Documents 68

Tracking Changes to Purchasing Documents 70

Releases 71

Buyers Work Center 71

Demand Workbench 72

Receiving 73

Receipts 74

Returns 76

Correcting Receiving and Return Transactions 76

Purchasing Month End and Accruals 77

Understanding EBS's Accrual Process 77

Loading Balances into the Accrual Tables 78

Additional Reconciliation Reports 78

Writing Off Accrual Transactions 79

Period End Accruals 79

Controlling Periods 80

4 Suppliers 81

Technical Update 82

Creating Suppliers 82

Quick Update 83

Company Profile/Organization 86

Tax Details 88

Address Book 90

Contact Directory 93

Business Classification 93

Products and Services 94

Banking Details 95

Surveys 97

Terms and Control/Accounting 97

Tax and Reporting 99

Purchasing 100

Receiving 101

Payment Details 102

Invoice Management 104

Ongoing Supplier Maintenance 104

Identifying Duplicate Suppliers 105

Merging Suppliers 105

5 Payables Setups 107

Required Setups 108

Operating Unit 108

Financial Options 108

Payables System Setups 112

Invoice Tolerances 113

Payables Options 114

Payment Terms 121

Special Calendars 123

Aging Periods 124

Bank Setups 125

Open First Payables Period 133

Profiles 133

Optional Setups 135

Hold and Release Reasons 135

Expense Report Templates 142

Distribution Sets 143

Folders 146

6 Payables Processing 149

Invoices 150

Manual Invoices 150

Defaulting Information During Invoice Entry 151

Invoice Batch Window 152

Invoice Workbench 153

Invoice Information Tabs 160

Entering Quick Invoices 188

Expense Report Processing in Payables 190

Netting Outstanding Receivables and Payables 193

Recurring Invoices 198

Importing Invoices 202

1099 Processing 205

Payables Processing Flow from Beginning to End 208

Invoice Validation 210

Invoice Approval 210

Creating Accounting Entries 211

Inquiring on Payables Invoices 212

Closing and Reconciling Payables 214

Validate All Transactions 214

Reviewing the Invoice on Hold Report 215

Creating Accounting Entries 215

Transferring Data to the General Ledger 215

Ensuring All Transactions Are Accounted and Transferred Prior to Closing the Period 215

Controlling Payables Periods 216

Balancing Payables to the General Ledger 217

7 Payments Setups 219

Setting Up Payments 220

Shared Setups 220

Disbursement-Specific Setups 233

System Profiles for Payments 244

Creating Templates for Streamlined Payment Processing 245

8 Payment Processing 249

Introducing the Managers 250

Payment Batches vs. Single Payments 251

Generating Single Payments 251

Voiding, Stopping, and Reissuing Payments 256

Refunds 256

Using the Payment Manager 257

Creating Requests for Payment 257

Scheduling Settlement Batches 260

Bills Payable Settlements 262

Bills Payable Setups 262

Managing Payment Processing 262

Determining Cash Requirements 269

Bank Reconciliations 270

Updating Transactions 270

Bank Reconciliation Reports 271

Calculating Balances Owed to Suppliers 271

Glossary 275

Index 281