Accounts Payable Setup | Financial Options | Payables Options
By Jag - October 05, 2014
Accounts Payable Setup | Financial Options | Payables Options
Oracle Payable Set up
Define two types of Options as follows:
Oracle Payable Set up
Define two types of Options as follows:
a.
Financial Options
b. Payables Options
Use
the Financials Options window to define the options and defaults that you use
for your Oracle Financial Application(s). Values you enter in this window are
shared by Oracle Payables, Oracle Purchasing, and Oracle Assets. You can define
defaults this window to simplify supplier entry, requisition entry, purchase
order entry, invoice entry, and automatic payments. Depending on your
application, you may not be required to enter all fields.
Although you only need to
define these options and defaults once, you can update them at any time. If you
change an option and it is used as a default value elsewhere in the system, it
will only be used as a default for subsequent transactions. For example, if you
change the Payment Terms from Immediate to Net 30, Net 30 will be used as a
default for any new suppliers you enter, but the change will not affect the
Payment Terms of existing suppliers
N: Setup > Options > Financial Options
1. Accounting Financials Options
Future Periods. Payables display the number of
future periods you use in your set of books. Payables uses this value to limit
the number of future periods you can maintain in the Control Payables Periods
window. You can enter invoices in future periods.
GL Accounts
Liability. Payables assign this account
as the default Liability Account for all new suppliers you enter. You can
override this value during supplier entry. If you use Accrual Basis accounting,
then the Liability Account for an invoice determines the liability account(s)
charged when you create accounting entries for invoices.
Prepayment. The Prepayment account and
description for a supplier site's invoices. The Financials option value
defaults to new suppliers, and the supplier value defaults to new supplier
sites.
Future Dated Payment. If you use future dated
payments, then enter a value for Future Dated Payment account. This value defaults
to all new suppliers and new bank accounts. The supplier value defaults to all
new supplier sites. The bank account value defaults to new payment documents.
When
Payables accounts for future dated payments, it uses the Future Dated Payment
Account from either the supplier site or the payment document, depending on the
option you select in the Payment Accounting region of the Payables Options
window.
If
you relieve liability payment time, this should be an asset account. If you
relieve liability at future dated payment maturity, then this should be a
liability account.
Discount Taken. If you choose to distribute
your discounts to the system Discount Taken Account, Payables uses this account
to record the discounts you take on payments. Use the Payables Options window
to select your method for distributing discounts for your invoices.
PO Rate Variance Gain/Loss. Payables
use these accounts to record the exchange rate variance gains/losses for your
inventory items. The variance is calculated between the invoice and either the
purchase order or the receipt, depending on how you matched the invoice. These
accounts are not used to record variances for your expense items. Any exchange
rate variance for your expense items is recorded to the charge account of the
purchase order. Payables calculate these amounts during Payables Invoice
Validation.
Expenses Clearing. This account is required when
you use the Company Pay payment option of Oracle Internet Expenses. Payables
use this as a temporary account to record credit card transaction activity.
Payables debit this account when you create an invoice to pay a credit card
issuer for credit card transactions. Payables credits this account with offsets
to the original debit entries when you submit Expense Report Import for an
employee expense report entered in Internet Expenses that has credit card
transactions on it.
Miscellaneous. Used only when importing invoices submitted via iSupplier Portal
or XML Gateway.
If
you enter a value here then the system uses this account for all Miscellaneous
charges on invoices your suppliers enter in iSupplier Portal. If you do not
enter a value here then the system prorates Miscellaneous charges across Item
lines on iSupplier Portal invoices.
The
system also uses this value for any miscellaneous charges your suppliers send
in XML invoices. If you do not enter a value here then import prorates
miscellaneous charges across Item lines for XML invoices.
Retainage. This account is required when
you use the Withholding tax supplier
Supplier - Purchasing Financials Options
The
options you define in this region, except for Inventory Organization, are used
as default values for the Purchasing region of the Suppliers window. The
supplier values default to new supplier sites for the supplier, which default
to new purchasing documents for the supplier site.
Note: If you use the Multiple
Organizations Support feature, values you enter in this window will default to
both the Supplier and Supplier Site.
You can override defaulted
values during entry of the supplier, supplier site, and purchasing documents.
Ship-To /Bill-To Location. The
name of the ship-to/bill-to location for the system default value. If the name
you want does not appear in the list of values, use the Location window to
enter a new location.
Inventory Organization. You need to choose an
inventory organization if you use Purchasing. You can associate each of your
Purchasing operating units with one inventory item master organization. When
you associate your Purchasing operating unit with an inventory organization,
items you define in this organization become available in Purchasing. You can
only choose an inventory organization that uses the same set of books as your
Purchasing operating unit. Do not change the Inventory Organization after you
have already assigned one to Purchasing.
Ship Via. Freight carrier you use with
suppliers. If the type of freight carrier you want does not appear in the list
of values, use the Freight Carriers window to define a new shipping method. The
value you enter here is the value in the Description field of the Freight
Carriers window in Purchasing.
FOB. If the type of FOB you want is
not in the list of values, use the Oracle Purchasing Lookups window to define a
new FOB.
Freight Terms. The freight terms for a supplier identify whether you or your
supplier pays for freight charges on goods you receive. You can define new
freight terms in the Oracle Purchasing Lookups window
Encumbrance Financials Options
To
use encumbrance accounting or budgetary control, you must install Payables,
Purchasing, and General Ledger. Use this region to enable encumbrance
accounting and to specify the default encumbrance types Payables assigns to
your invoices, and Purchasing assigns to your requisitions and purchase orders.
If
you enable encumbrance accounting or budgetary control, Purchasing creates
encumbrances when you reserve funds for a requisition or purchase order. If you
use the perpetual accrual method in Purchasing, Purchasing reverses purchase
order encumbrances when you inspect, accept, and deliver the units. If you are
using the periodic accrual method in Purchasing, Payables reverses the purchase
order encumbrances when you create accounting entries for invoices.
Payables
creates encumbrances when there is a variance between a matched invoice and the
purchase order to which it is matched, and when the invoice encumbrance type is
different from the Purchasing encumbrance type.
Oracle Financials provides two
predefined encumbrance types that you can use to identify requisition, purchase
order, and invoice encumbrances: Commitment and Obligation. You can define
additional encumbrance types in Oracle General Ledger in the Encumbrance Types
window.
Use Requisition Encumbrance. Enable
this option to encumber funds for requisitions. If you enable this option,
Purchasing creates journal entries and transfers them to General Ledger to
encumber funds for purchase requisitions.
Reserve at Completion. If you enable Use Requisition
Encumbrance, indicate whether you want requisition preparers to have the option
to reserve funds. If you do not enable this option, only requisition approvers
will have the option to reserve funds.
Use PO Encumbrance. Enable this option to encumber funds for purchase orders, purchase
order and receipt matched invoices, and basic invoices (not matched). If you
enable this option, Purchasing encumbers funds for purchase orders and Payables
encumbers funds for variances during Payables Invoice Validation for purchase
order and receipt matched invoices. If you enable this option and enter a
non-purchase order matched invoice, Payables will encumber funds for it during
Payables Invoice Validation. All Payables encumbrances are reversed when you
create accounting entries. If you enable Use Requisition Encumbrance, you must
also enable this option.
Member State. The location of your company
or organization. Payables use this country name to determine if your company or
organization is located in a member state of the European Union (EU).
VAT Registration Number. The Value-Added Tax (VAT)
registration number for your organization. Your organization is assigned a VAT
Registration Number if you register to pay VAT. The first two characters of a
VAT registration number are the country code for the country or state where the
registered company or organization is located. Payables print this number on
the header of the Intra-EU VAT Audit Trail Report.
Human Resources Financials Options
Use this region to enter the
options and defaults for entering employee information in the Enter Person
window.
Business Group. Enter the name of the business
group that you want to associate with Purchasing. If you use Purchasing jointly
with Oracle Human Resources, you must reference the business group that you
define in Oracle Human Resources. If you use Purchasing without Human Resources,
you can use the default value. The default for this field is the Human
Resources default of Setup Business Group.
The business group
determines which employees you can use in Purchasing. In Purchasing, you can
see only the employees in this business group
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