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Oracle R12 Financials Training AP Invoice Overview

pOracle R12 Financials Training AP Invoice Overviewp pokay so in the last session we completed patches in related setups and we open the patches in period so now parceling application is ready to use so to test this entire p2p cycle we required fables application also with required setups so payables is going to be part of Finance so well just focus on these payables to understand what are the different concepts we have earned what are the various type of transactions you can record in the payables application ok so just your lets say tables tables application so what is the purpose of accounts payables anyone we discussed in the p2p cycle very high level so what is the purpose we can use accounts payable application what we can do with the help of accounts payables ok the first point is payments any other transactions you can record in the payables as a part of accounts payables what we can record uh tracing invoice thats it so we can record the purchase invoices and Ignace that purchase invoices we can cross the payments now first well talk about purchase invoice okay so what information we may include as a part of our chosen from a purchase invoice any guess are if you have some idea please just give me a few points which are related to purchase invoice if you are going to record the purchase invoice which is against purchase so what information we may include as a part of purchase invoice anyone please we need the supplier information supplier item yeah so Ill just let me write the same points so that the same we can use for our discussion also well just take out the sublimation when you say supplier information will provide the supplier name and we have to provide the supplier address also okay fine any other information supplier supplier address what else isnt something so we are purchasing the item from the suppliers okay so I need the retail item on this yeah what is price of the item okay counts pounds warrants voice recording anyway so baby peel the other way we need to ID ship t1 firm is noticeably less people number any other information so okay fine yes this is the information well be including as a part of purchase invoice a chase invoice when you create the purchase invoice in the system the basic information provided as a part of purchase invoice along with this will be giving the invoice date and here we discussed about price of item the same way invoice amount and payment date okay we have to specify when we have to pay okay when we have to pay what is nothing but date say payment date sorry payment ins yes its nothing but payment terms only we will come to that exact point just here very basic level were discussing payment date nothing but that that will be derived based on payment ounce only okay fine and along with that we have to specify how we are going to make the payment to supplier so whether you are going to pay through cash just for example I am taking normal dont go with the gas shake some fire payments or electronic payment ok the method which method you are going to follow to cross the payment that means how you are going to pay when you are going to pay nothing but payment date how you are going to pay nothing but payment method can save payment method ok so these are this is information we have to specify when you are going to create the invoice in the system ok when you create the noise in the system these are the basic information we have to provide when you are creating the invoice in the system along with these details our application related specific information also you have to provide that invoices belongs to which operating in it and few other details also you have to provide ok fine so supplier in the system whatever the supplier we create just the supplier information basically classified into two parts what are the software recording create in the system that information is classified as it 2 parts what are the name we provide for the supplier ok that information we can call as supplier header and address the same address only we treat bad generally we use the term on a site say supplier site so software information can be maintained in the system with these definitions supplier header and the supplier site so when you create any supplier in the system the supplier will be available in all the operating units in the entire instance the software would be available that means supplier header information our supplier information is global information here global means and their instance ok say you have a 10 operating units you are operating the business in multiple locations you have a for each location one operating end when you are creating the supplier in order to select any operating in it straightaway you can go and create the software the software can be accessed by any operating in it but what are the site you create the site you have to select for specific operating net okay so supplier header information our say supplier information is global supplier site information is local that means whatever the site you create that will be associated with the specific operating net so say you have a 10 operating its from 10 operating units you can see that supplier information with respect to operating it name you can see supplier but when it comes to supplier side say you created on site means one address of the supplier that address ok that say out 10 operating area out of 10 only 2 operating its are contacting that supplier address so the site you can assign to only those two operating needs so only those two operating its can access that site other operatives cannot access until unless you assign that site to specific operating in it so here the point is supplier information is global information ok Ill say supplier record is master record and when you when I talk about actors for artists will create sub site name so supplier site we can assign to specific operating it so that the site or the address would be available within the same so same operating net to record the transactions ok so within the specific operating at only the site would be available supplier information is global site information is local this is the point where understand so item details price yes that is true ok when you are going to create the invoice if you specify the piwo information and all that only this information will come ok otherwise did you or we dont get it fine so now other point is well just come across all these points but in this stage to understand the basic structure of invoice creation what are the points we require well understand here so invoice number what I will talk about accounts also can wise number when you talk about invoice number so when you do some purchases supplier will be sending the invoice that number whenever you get the invoice from the supplier within that invoice water the number we have that number we have to enter in the system if you enter in your wounds up invoice number what is the issue you may face so supplier given on invoice that information you are entering in the system to make the payment but you are not using the invoice number which is given by supplier so what kind of issues we may come across any guess Reddy idea once we safari in West number metal rock if a fatality niku risk are then we can affect our schools exam in future if you have so mishima that invoice youll be able to speak with your supplier saying that so you send soon so noise invoice number is so on so so that you given that invoice with say ten thousand the reality that should be for nine thousand or eight thousand okay for any korean we have any issues we have with that invoice when you speak with your supplier you can refer that number based on that number they can verify their records a supplier is given the invoice number say w1 and you enter in your system one tomorrow if you have some issue when you verify the system that invoice shows number as one when you call to the supplier so I have some issue with this one so invoice they may ask you invoice number and you say noise number is one they dont they may not find in why any invoice from their end as they issue to us with the number of one so that is reason water the number you get from the supplier that number you have to provide as a invoice number and you create the purchase invoice right and pure number the invoice within the purchase invoice when you get the invoice from the supplier the supplier will be mentioning the pure number the invoice is Ignace to each Pivo that number you how to specify the inverse creation type and invoice date so invoice is on which date you are entering RS which date the invoice God created that you can enter normally when you are paid in the invoice we may enter out what are the number is printed on the invoice that number you can enter in the system okay so any date you can take normally whatever the number you see whatever the date you see within the invoice that date will be entering as invoice date when supplier invoiced it invoice amount okay the total amount for the invoice say for example total invoice amount is ten thousand now when you see that invoice amount is ten thousand why that amount we I mean the why the invoice amount is ten thousand what is the reason that you can address with the specific accounts so this amount ok this amount you have to specify with this specific account ok say 10, 000 why 10000 say for example you purchased books first say 6000 okay and you purchase say some mobile rest for 2004 chase pence for 2016 generic simply okay so these three accounts you have to specify within that invoice so in Y Shamoon is 10000 how that amount you got 10, 000 because of for these purposes you spend some experience or as these you purchase from supplier so that is the reason you got invoice amount has 10, 000 so that means here at simple point you can understand the invoice amount the invoice amount we have to distribute across these accounts please you can treat as iPhones books account mobile account pens around what are the amount you are entering in the invoice that I wont need to be distributed across the different accounts okay this is how you can specify this is how you can specify so here well be using the constant this is the point here what we discussed within the purchase invoice we have to use the accounts for each account the invoice amount is how much is belongs to that house you have to specify 6 to 2 to 10 yes this total distribution across the different accounts should be equal to invoice amount and payment date payment date is nothing but here well go with the payment terms so supplier make you the payment term as a 10 days so supplier is giving the payment term as a 10 days so that means today you are creating invoice that means you have to pay within 10 days whether the 10 days need to be calculated from today or specific date for that we have a concept called as term date that well discuss when you create the invoice for now just try to understand the payment terms concept we have to calculate the due date with the help of payment terms we can calculate that you rate this a supplier is saying we have to pay within 10 days so plain is saying we have to pay within 10 days ok the same time supplier can inform us instead of paying within 10 days if you pay within 2 days you will get 10 percent discount if you pay within 4 days youll get maybe five percent discount okay if you pay within six days instead of 10 days supplier may offer a two percent discount so this discount information also will be specifying within the payment terms within the payment terms will say in how many days we have to pay 10 days so instead of 10 days if you pay within two days or four days or six days if supplier is going to offer the discount that information also will be mentioning within the payment down so we can just understand with the help of payment terms we can calculate the due date if you take todays date okay 10 days means you have to pay a next month fourth for example okay so from todays system will be counting 10 days 10 days means say next month for 40 how to pay so thats our system will understand so the help of payment terms you can calculate the due date as well as discount also based on the eligibility you can calculate the discount that is a purpose of payment of payment method means how we are going to make the payment to supplier so when we are going to pay that can be calculated with the help of payment terms how we are going to pay that how to specify in the each and every invoice whether you are going to pay through cheque or through EFT electronic payment process or by using the wire or by using the cash okay so that information you have to specify within the invoice as a payment method so primarily this is the information we have to provide as a part of invoice so so soft address okay and invoice number and invoice amount the amount what you are entering there has to be distributed across the different accounts and invoice date and payment or payment method the rest of other components also very much important just well be working on that so well be providing the fewer number so most of the new Isis will be creating by checking with the fewer information only there could be some invoices where directly will be and bringing the tables without referring any the pword related details also that house will discuss just now for now lets try to understand what is the very key information will record in the purchase invoice okay now take the example say you have a case where all the time you will purchase laptop from our suppliers ok laptops from your supplier so you are doing some laptop purchases when you do laptop purchases the total cost whatever the invoice you are getting say within that invoice that laptop for laptop account the total cost may goes to say eighty five eighty five percent okay when you are purchasing the laptops from the suppliers the total invoice amount out of total invoice amount say eighty percent goes to laptop account eighty percent amoun eighty five percent among should belongs to laptop account and out of that say tax amount is 10 percent and fright amount transportation five percent take the case this is applicable all the time whenever you purchase a laptop out of the entire or say for example you purchase laptops the laptop you purchased the total amount is one lakh so when you create the invoice this one lakh me how to distribute across the different accounts right say all the time out of total invoice amount 85 percent goes to laptop account so in that case 85 percent that means eighty five thousand and ten percent should goes to tax account ten thousand and five person should goes to fright account five thousand now this is equal to 1 lakh that means the invoice amount you are distributing across the different accounts if you know the case the total invoice amounts should be distributed across which accounts you can do the account and you can specify the percentage this okay these specification so you can use in the invoice creation time so based on the percentage automatically system will distribute the invoice amount across these three accounts how many iPhones you are giving out over to take so this kind of setup we call as distribution set because as distribution said in the system what you can do is you can create the distribution set within that you can give specific accounts under the percentage how much amount should goes to which account you can give so now say for example you have a distribution set like this means the amount the total invoice amount you are distributing with this percentage across these accounts now you are creating invoice with thousand rupees you are creating invoice with thousand rupees so when you create the invoices thousand say you will be using this distribution set I will call this dish set name as laptop distribution set that means laptop related amount in Y Simone need to be distributed shared across which accounts these three accounts and with this person pays now you are creating one purchase invoice with a thousand a thousand rupees you give thousand rupees and when you use this laptop distribution account within your purchase annoys automatically what system will do is this thousand rupees system will distribute across these three Accords by following this percentage my fall in this percentage how much amount should goes to laptop account eight fifty and ten rupees should goes to tax account so hundred rupees right 100 rupees and fried 50 the total 1000 okay if you give you a two thousand if you know ice amount is 2000 okay here seventeen hundred two hundred hundred so if if you have these kind of cases when you deal with your software okay when you create invoices this is all most of the times we are going to create they know SS in stuff and train so for which I count how much amount simply you can create this kind of rule in the system which account how much amount this definition we call as a distribution set okay so when they are creating invoice you can use this distribution set then system will look at how much percentage should goes to which account okay from the invoice amount accordingly system will distribute this okay this is one case now I will take another case so youre purchasing not laptop say you are just purchasing save some bike or purchase in the bike so when you purchase the bike this should be say bike account so you are not very sure the total invoice whatever you are getting for bike purchase how much percentage should goes to bike account how much percentage to tax how much percent is to fright account so in that case what you can do is at least you can keep these accounts and percentage you cannot specify you dont know you dont know the percentage but you are creating distribution said by including these accounts when when we use this distribution set by distribution set at that IMF invoice creation what system will do system will take at least these three accounts when system is going to take these accounts we no need to enter in the system we no need to enter in the system system well take the bike account code combination tax account code combination fright account code combination just since you are not giving the percentage you have to go and enter for bike how much amount for tax how much amount fight how much amount that total should be equal to in voiceover okay just notice we have it two cases one is we know that invoice amounts should belongs to which account and how much percentage in other cases we are not sure that percentage is not fixed all the time there could be some fluctuations in the market so it will it may keep changing so in that case just at least you will be knowing if you purchase bike the bike related amount should be maintained with which accounts so of course you know but you dont know exact percentage in that case you can create the distribution set called as set with the percentage only without with the just zero I mean without any percentage so in this case system will at least take these accounts into invoice the amounts you can enter but if you go with this kind of distribution set you are giving accounts and percentage automatically system and distribute the invoice amount across these accounts that is the advantage of distribution set if the help of distribution set with the help of distribution set we can distribute the invoice amount automatically across the accounts with respect to a percentage if you take this distribution set when you apply this distribute certified invoice creation system will take the accounts but since we are not giving any percentage manually we have to enter the amounts at least system will take the accounts okay that is the purpose of distributions that we have in the system if you are going to create the distribution said with account and percentage that we call as full distribution set we call as full distribution set and if you are going to create the distribution set in the system with just account without any percentage that we call as skeleton distribution set okay full distribution set andor skeleton distribution set full under skeleton so these two comes under distribution set types we have a two type of distributions you have a two type of distribution sets before that we have to understand what is the meaning of distribution set okay first point is distribution the very first point is distribution the next finding out to understand is to be said how many types how those can be different shape the first point what do you mean by distribution distribution is nothing but the moment whatever invite someone to a door you are going to specify with the specific accounts that we call as distribution okay in why someone is 50 thousand out of 50 thousand how much amount should goes to which account that specification we call as distribution when we are creating the account when sorry when you are creating the purchase invoice you can give the invoice amount the invoice amount is belongs to which accounts you can go and enter that we call as manual distribution system is not distributing you are selecting account and you are giving amount so you have invoice amount fifty thousand okay the fifty thousand should goes to which account select account give amount thats how youll be just distributing that amount across the different accounts that is a manual process which user can do we can do it okay so instead of entering through manual process if you want to automate if you want to automate the distribution through system you can create the distribution set with the help of distribution said what we can do we can allocate the invoice amount or else we can distribute the invoice amount across the accounts automatically if you select the recipients app within the disturbance air to water of the accounts we have percentage we have system will distribute automatically okay fine with the help of miss division said we can distribute the invoice amount automatically how many type of distribution sets we have we have a two type of distribution sets so if you create the distribution set with a count and percentage that we call as full distribution set that means system will take the account and based on the percentage it will take the amount also and other restrictions at IP is correct and distribution said what is the meaning of skeleton some partial loops is not full okay complete definition yes that is true just we are giving accounts only not percentage that is a reason we are calling ask Anita if use this distribution set the skeleton distributions at invoice creation time okay what are the amount we have in the invoice the amount system is not going to distribute but it will take these accounts automatically I am at least we can enter the amounts otherwise you have to enter the accounts as well as amounts in case of manual distribution okay so distribution means we have to allocate okay we have to allocate are we have to give the invoice amount to specific account that we call as distribution if you want to automate that distribution okay the invoice amount if you want to automatically distribute across the different accounts you can create the distribution set we have a two type of distribution set one is full distribution and the other one is skeleton distribution set with the full distributing the full distribution set will provide account and percentage in case of skeleton distribution set will provide only account we dont provide the percentage so in that case system will take I found only amount we have to enter in case of full the account undue amount system will take automatically based on the percentage what you are giving in the invoice okay so when we are creating the invoice you can use the distribution set RS manually you can go and enter the distribution for the invoice amount any questions on this point please distribution set is mandatory to create the invoice do you think distribution set is mandatory to create the invoice just respond whatever you think based on our description no no I its not the melted tree why cause ultimately if you are happy okay okay kasumi Shelley is melody but is the to title so anyone we can take okay any other answer do you think distribution set is compulsory then you create the invoice so this chain is not compulsory sorry it is not from the city why I mean we can intern in detail awesome thats it that is a point since to me yes manually we can enter two options we have we discussed you distribution you can enter manual distribution you can create the invoice you can give the invoice amount the amount is belongs to which are count how much that you can enter through manual process that is a manual distribution we call if you want to automate that invoice amount to be allocated across the different accounts based on the percentage or else at least accounts then only we use the distribution set distribution said to distribute the invoice amount automatically across the different accounts for automation purpose we use disturb yourself if not automation we can enter through manual process okay distribution is mandatory are not further than wise vision is mended tree yes distribution is mandatory you want to provide the distribution through manual process are with help of distribution set automatic with that you can decide but for every noise what are the amount you are entering that you should address with the different accounts you have to specify the total amount is belongs to one account or multiple accounts a how to specify that only we call as distribution for every invoice amount okay we have to distribute we have to provide the distribution you have to provide the distribution within the distribution what will have will have a accounts and amounts manually you can enter the distribution our else with the help of distribution set you can create the distribution for invoice so this is the point we have to understand when you create the invoice so we have to you the invoice distribution to give that it invites distribution we have a two option one is manual process other one is automation the case of manual user will be entering the account and amount if you go with the automation we have it two options two type of distributions fully distribution under skeleton if you go with the full distribution system will automate account undue amount based on the percentage if you use the skeleton distribution at least system will automate account derivation automatically will take account just will be altering the amounts so this is all about distribution or distribution set and type of distributions and how we can differentiate full and skeleton so any questions on this please any questions on this please well question actually here we are defining the percentage you know always we need to change this possibility because ultimately Texas changing or maybe cost is varying for some particular time so every time we have to need to change or is any other it we dont change it normally if you see the scenarios if the cases are going to be the allocation is going to be fixed in that case you will create the full distribution said okay say when you say taxes are changing it wont happen very frequently right it wont happen very frequently whenever you see the situation you may create another distribution set you can create another distribution set so within that you can give the different percentage and thats how you can manage or else exist in distribution said normally we dont recommend to do the changes to existing we will be creating the new one okay or else you can go and change within that but normally we dont change for existing distribution set you can create new one that you can start using for further invoices wherever that percentage is will be applicable that is the practice we follow okay but whatever you see as something is keep changing all the time for that we dont use the distribution set in that case the best option is go and enter through manual processes otherwise the second option is you can use the skeleton distribution the percentages maybe J keep changing but accounts may not be changed based on the transaction fee but just by guess some amount should goes to by actual by cost and some amount should goes to tax and fright the facts may be changed the fright may be changed okay the percentage of by amount also can be changed that we are not very sure that is the reason we are not giving percentage use skeleton distribution set in those cases just system will take the account you can enter the amounts then there wont be any issue if you see the scenario if you are buying some products so the cost is where the percentage is going to be fixed all the time in that case you can use the full distribution set or else you dont have scenario where you will be using the fixed rate constant fixture percentage then go and enter through manual process okay so these are the points you have to understand any other questions on this please fine so no questions so fine first point is supplier and supplier address software whatever you create in the system that information we call a supplier header supplier header information is global this is not at all specific to particular operating in it but I talked about address the address will be creating the system a supplier site site will be specific to operating it you can specify in the system the site can be used in which location I mean which operating in it okay so take example say we have a supplier called as Dell if you take Dell supplier Dell supplier may have operation say in Hyderabad they have office so they have efficient Bangalore say Delhi they have location offices in multiple location the supplier name is Dell there they have offices in these three locations now you have you are running your business and you want to purchase laptops from the Dell now you will create the supplier as a Dell you create supplier now which address you have to create they have operations in three locations which address we have to create as a site in which location you are going to contact that supplier that you have to create as a supplier side you are going to contact this Dell when they have supplier to purchase laptops from Hyderabad location now we have to create a Hyderabad address and that you have to name it as a Hyderabad site thats all okay so we discussed in the p2p cycle what would be the standard for q2 per cycle so what are the reasons you will be contacting the supplier anyone please what are the different reasons you can find to contact the supplier to what reasons you may contact the supplier yeahmaybe price he has taken the wrong price record the wrong price for the item okay and sometimes if suppose supply is supplying some item but the item is means it is the damaged item so we will contact the supplier okay will be the quantity is less yeah other correct go ahead any other points what are the different purposes we have to keep in touch with the supplier purposes different purpose actually suppose we are taking some quantity from supplier but he is going to supply that quantity in three or four times so maybe we have to contact for the the supply also okay okay any other reasons a very primary reasons you are ignoring it Weis is very low I think somebody is speaking back okay so most of the guys are giving that reason only any other reasons what any other purposes you see why we contact the supplier aments yeah payments to make the payment then what is the other reason other purpose you dont contact the supplier to purchase you dont contact the supplier to get rfqs these are the primary reasons so we have with some requirement you I want to get rfqs whom you from whom you will be getting RFQ from supplier okay you may contact the software to get the quotations so its nothing but RFQ request for quotations and once you are okay with the quotation and you may contact the supplier to purchase if you purchase it will be contacting the supplied to make the payment yes we can take another point what you are violating as a returns also yes and I purchase there could be case to do the return but as a standard process these are the reasons why we have to contact the supplier so these are the these reasons will be contact in the supplier in the system when you create the site so you create a site as form so location you given the site name as Hyderabad ok Hyderabad so Hyderabad site what purpose you are going to contact okay what purpose you are going to contact that is also very very important ok the supplier may tell you quotations you can get from Hyderabad order so you can place to Bangalore payment you can sign to Delhi so in that case how many sites we have to create three sites for quotations one site to purchase purchases we have to do from Bangalore and payment we have to send to Delhi that means each site here these three will be creating three sites in the system this Hyderabad site for just to get our of Cures Bangalore to place do the purchases when you say purchase purchase orders will be placing the orders and Delhi for the purpose of payment or else your software can inform you so you can get the quotations from Hyderabad you can place the orders to hydropower site and you can send the payment down so either our site but in that case so this site I durable site will be creating a supplier site we will be setting the purpose what purpose we are going to contact with what purposes so you can contact the Hyderabad site with these three purposes orell supplier may inform you if you want to purchase anything and if you want to make the payment you contact Hyderabad any rfqs you have to get from Delhi because we have a team in the Delhi will be providing the quotations on your request okay so this is how we have to specify the site purpose okay well create the supplier site and what purpose we are going to contact that supplier address that we have to provide in the system as a site purpose RFQ purpose or purchase when you say purchase PU purpose our payment purpose that you have to specify whenever you create the supply site okay just remember these points so supplier information will be classified as a two parts header part and o sight path header information supplier header information will be available across the system from any operating from anywhere you can see that but when you talk about supplier site the site you can create the site you can create and assign to specific operating in it when you create the site you have to specify their what purpose we are creating the site one supplier can have multiple sites okay sup where can inform us you can make the payments in Hyderabad or Bangalore or based on your interest you can create if you want to make the payments only in Hyderabad create one payment site for Hyderabad sometimes if you want to cross the pavement to Bangalore also create one more site so one software can have multiple sites based on their operations and based on the interest what purpose we are going to contact you may not ask the supplier to provide the quotations so you will be purchasing and will be paying in that case we can have a site which will support for chasing on the pavement problem okay will create the supplier information in the system as a supplier at an information simple point supplier name will provide primer Linda as a part of software under if you provide supply name and if you say you system you create that as a supplier header and you are going to contact the supplier in hootchie location which obvious that office address will be providing that we call as supplied site we can contact the supplier with that address for what purposes that also we have to specify for each and every site now the site you have to assign to specific operating in it so now say you have a operating its like whoa you one for you two for you three okay for you three and here supplier site name is hyd site will say hyd site Hydra beside so from which operating in it you are going to record the transactions which operating it is going to contact Hyderabad site of soandso software ok so you have to assign that side too but chloro operating in it say this either about side I am going to assign to go you three now if you go to oh you three within the oh you three you will be creating you will be able to create the invoice or will be able to create the purchase order or you will be able to create the requisition okay against this Hydra website if you go to oh you won and whoa you to you cannot find that supplier within this operating unit since that site is not assigned to this oh you won Ryu okay so if you want to create any transactions from specific operating it against the supplier the site should be assigned to particular operating unit okay this is a point we have to understand here any questions on this please so Lakshmi youre saying that one supplier cannot be assigned to two operating units right I am not at all talking about supplier I am talking about supply side goodness so he took my side yeah sight can be assigned to multiple operating rates I am just taking the example if you assign Hyderabad side oh you three go you three you only can create a safe but only the boys in our case will take example of payables so you can go to oh you three from oh you three or say for go you three you can create the invoice echinus this software now you can assign either about site oh you one also so now the supplier would be available in that means owe you one also will be able to take invoices either beside any other questions here please when we just define discipline in the system that would be more and more clear still if you have any questions we can discuss on that before we get into the system to define the supplier at least these points you have to understand okay so to create the invoice in the payables we need supplier and the supplier should have a site the supplier information is global that would be available across any it would be available in the system and when we talk about supplier sites those are specific to operating it okay to which operating you are assigning from the top operating and only you can create the invoice against that supplier and thats all about software and the site here we are calling here supper had apparent formation look for a supplier header so Sandras information with malice up their site the each address we have to assign to specific oh you to use that supplier from that view and when you create any address address will have a specific purpose these are the different purposes others can have RFQ purpose are purchasing purpose or payment purpose okay so fine other points well discuss when you create it so other information here we discussed accounts an invoice number so what are the invoice you get from the supplier that number only have to enter in the invoice creation time and when I talk about accounts what are the amount you are entering in within the invoice that amount should be distributed across the accounts so you can go with a manual distribution you can go and give the account and you can give the amount and finally the total invoice amount you have to distribute across the different accounts where the amount is belongs to exactly based on the transaction okay if you dont want to go with a manual distribution you can use the distribution set by using the distribution set you can distribute the invoice amount across the different accounts with the specific percentage or without constant air if you go with the full distribution set you can give the account and percentage if you go with a skeletal disturb you said you can give the account no percentage okay this is our just we can just understand about distributed set done and fewer number and all that also you will see when you create the few what other points we understand we will discuss invoice number you may enter the invoice number which is printed on the invoice and payment terms with the payment terms if you can create you can have a payment terms a supplier is saying you have to pay within five days so then well have a payment term called s Phi race that pavement done whenever you take invoice system will start counting so we have to pay within five days five days means which gate the date we call as due date okay the date we call as due date so within five days means when on which date we have to pay that system will calculate based on the payment term that we call as due date within the payment time you can specify the discount applicability also if any supplier is going to offer the discount so so payment of his Fridays but supplier may offer you you pay within two days I will pay I will give you ten percent discount your supplier is saying that you can include in the payment terms whenever you use this payment term and when youre making the payment if you are paying early today said I mean within two days system will calculate the discount otherwise at least the payment term will help us to know the due date when the invoice need to be paid so within the invoice we have to provide the payment method also how we are going to process the payment to your supplier through check our electronic process and while process okay by following which method you are going to make the payment this information you have to specify so any questions on this details what we are discussing here related invoice please and other few more points will understand once you get into the system or else near the just that well discuss so now those are not required every invoice will be entering which would be specific to operating in it and there are a few more other points as envious times etc that well be discussing so now this is a very basic information which you have to understand any questions on this please any questions please right now just we look at the structure of invoice we look at what would be the structure and you create the invoice so invoice information what is the structure for supplier simple header and the site this we can call a structure how the invoice input supplier information can be managed in the system or organized in the system process that we got we can simply say structure what is the structure of supplier header and do sides we can have multiple sites for one supplier one site can be assigned to multiple operating it which a site which operating it we are assigning that site that operating at only can use that supplier now we will look at the structure of invoice when you talk about inverse structure will have a invoice header will have invoice lines will have invoice distribution okay invoice distribution invoice distribution Ill go with a simple example to make you to understand why this lines also required we discuss distributions every invoice need to be distributed across the different accounts with amo and Hagen information means the most other information will be given the header only will will go with the simple example so that we can understand okay so say for example purchasing one laptop and one table from one supplier so in that case the supplier will give how many invoices since you are buying these two items at a time you will be getting only one invoice say this laptop Kosta is twenty five thousand when this table cost is ten thousand okay and here I will go with the more detailed specification here okay well discuss your notions so laptop twenty five thousand table ten thousand now we talked about laptop twenty five thousand we have to distribute this amount right okay we have to distribute the amount so if this is scenario what well do is the total amount is how much 30 thousand so 35, 000 this will take as a invoice amount invoice amount so in the header level well be entering the invoice amount not only invoice amount all these details so supplier who is the supplier whos the supplier what is supplier site and invoice number and invoice date if you are going to enter the p wa number and invoice amount in payment terms and payment method here instead of saying accounts you can say distribution okay distribution or you can say distribute set for invoice will have a distribution okay you may use the distribution set also so function a little bit okay so most of the information okay supplier information supplier site information and invoice number P 1 number invoice the invoice amount payment terms payment method all will be most of the information will be providing in the header level okay along with all the information the Hatter level will be given the in amount invoice amount as we discussed here 35, 000 so now how many items we have two items laptop on the table so in that case you will be creating that two lines will be creating the two lines for two lines one line for laptop with 25, 000 another line will be creating okay with our table 10, 000 okay now you have to distribute this 25, 000 is belongs to each accounts will say laptop cos these 23, 500 on taxes thousand and fight fry it is 500 the same way for table also you have to distribute okay they will also you have to distribute saying the table cost is 9500 taxes 500 will spend anything for fight fights off so this is how you now to distribute now the total amount you will be taking in the invoice Hatter level along with all the who is the supplier what is the supplier site what is invoice number the invoice amount same in payment term payment terms all will be taking the header level the line level what will do is so how many items we have you will be entering the item and item related amount will be obtained in the line level two items we have two lines you can enter for each line you have to give the distribution that we call as invoice distribution or say line distribution also okay line distribution also you can call so these three accounts will be mentoring under this first line here in the noise this these two accounts well be maintaining under second line which will create in the invoice or else you take the case you are not buying the items multiple items only one item you purchase okay so this is an example you can take laptop you purchased okay that is belongs to these three accounts in that case had a level will be given the same amount how much amount say you purchase laptop for twenty five thousand had a level enter 25 thousand along with the supplier invoice number payment terms women method client level also be entering twenty five thousand this twenty five thousand is belongs to which accounts that will be entering in the invoice distribution so you it may belongs to as we discussed your simple example three accounts three accounts for which I found how much you are how much amount will be entering here so this is I will be creating the invoice so invoice will have a header lines and distributions and very important point is the all the distributions amount should be equal to lines amount all the lines among all the lines amount should be equal to header a pound okay say you created under amount as 25, 000 and line amount also 25 thousand here in the distribution for three accounts you enter 22, 000 this invoice cannot be processed as per invoice creation process rule okay now all these header amount line amount distribution amount should be same should match otherwise invoice cannot be processed or else we enter a header level line I mean distribution level it is you can say line distribution business you can call you can call as line distribution this invoice at our invoice line for this line amount you will be distributing here you can call as line distribution so here you enter twenty five thousand in the line level you enter 21, 000 the total invoice amount is twenty five thousand and that should belongs to any one of the line right but he had totally only given but line distribution line you taken 20 what line distribution you are given for default its mismatching the header line and distribution amount should be well otherwise this invoice cannot be processed okay this is the point we have to understand so by following the structure header lines and distribution will be maintained as a hierarchy and top header within the header you can have one or multiple lines each line can have one or multiple distribution accounts or say distribution lines so this is the point we have to understand when I talk about invoice creation in the system okay you created invoice header level you given all the information supplier supplier site okay and he give an invoice number in diversity a twice amount payment on and the payment method all the details you given and you create a header and line level you entered say twenty five thousand now line distribution you entered few accounts and you given the amount and say header line distribution amount is matching now what is the next step first step is we have to create the invoice for step is we have to create invoice hope you created invoice by specifying information in the header line and distribution what is the second step after creating invoice you have to validate the invoice now to validate the invoice after validating invoice you can up through the invoice you can approve the invoice after approving the invoice you can make the payment to the invoice when you will be making the payment whenever we arrived at you date just invoice is ready you we dont go and make the payment well wait for till due date and well be making the payment if runs not available you may make the payment bit late house right so the process was this is what we have to understand first well create the invoice will validate the invoice you look through the invoice you can make the payment for the invoice so and one more point you can include here so after before after a while you can just mention that it will be creating the accounting will create accounting for invoice so that system will take how much it goes to which account it goes to debit amount which is the debit account which is a credit account system will create when you create in the system will see that no detail level here processwise try to understand this point so first well create invoice then well validate the invoice will create the accounting for invoice then it will approve the invoice then we can make the payment here which is a mandatory which is optional my requirement is I want to make the payment for an invoice this is my requirement in that case what you should perform as a mandatory first of all there should be invoice that means you have to create the invoice okay this is a first step you have to perform then to make the payment is it mandated to do the validation for invoice what is a meaning of validation so after creating the invoice by giving all the information you have to validate the invoice the validation process what system will do is system will verify the had airline and distribution amount is equal or not if that is matching then system will validate not only that point there are some other points also where system will look for to complete the validation for that invoice when you do the matching process at that time will understand that for now just simple point you can take here after creating invoice we have to validate system will verify all the fields mandatory fields are entered by user or not and the header level nine level distribution level water the amount you are entering that is matching or not it will verify if system identifies all the fields are entered in the header and the line distribution which are mandatory and header line distribution amount is matching then system will validate the invoice okay this is second step which you have to perform as a mandatory first you have to create the only how to validate okay then next step is accounting create accounting when you submit this create accounting what system will do is system will take that twenty five thousand into table and credit account okay from where it will take how it will take that will see system will create the accounting entries it will pay the accounting entry so that that information we can send to gl to create the reports okay sister Nikita debit and create up entries for that we have to submit the accounting yes its mandatory we have to create the accounting to send the data to GL but not to make the payment without creating accounting you can make the payment okay you can if you want to make the payment you have to create the invoice we have to validate and you can make the payment okay accounting is required for every invoice but not to make the payment to send that information to GL its required if you dont create an accounting for invoice invoice will be there in the AP that invoice information you cannot transfer to GL this is a point we have to understand so that you cannot prepare any reports in GL related to invoices which are in the AP fine then the approvals if you set in the system as approves are required okay if you set in the system as approves are required then only you have to approve without dr.

Oracle R12 Financials Training AP Invoice Overview

Leigh you cannot make the payment if you dont set up rules are required in our process okay so without approval you can make the payment its optionally if you are going to use the approvals without approving you cannot make the payment if you are not using the approvals since you are not using there if you can make the payment okay so this is a conditional pace but you have no condition without creating accounting out so you can make the payment so process why just try to understand first well create the invoice then well validate the invoice we will account the invoice but not mandatory okay if require will approve it final well make the payment remember this we call as invoice crosses okay you can create invoice you can validate invoice you can account it if require you can approve then you will be able to make the payment okay so any questions here please okay fine no questions so this is the basic informational provide as a part of invoice creation the software site can be assigned to multiple operating units site will have a purpose these are the different purposes we can have the invoice amount whatever entering if you want to distribute automatically use the HTTP you should set if you want to enter through a manual process manually you can go and enter and when you talk about structure of invoice it got three data classifications as a inverse structure header path lines path distribution part so I had airline under distribution what are the amounts you are going to enter along with information okay should be same that means the amount should be same after create is the as a part of process okay will create invoice in the payables then will validate the invoice will create the accounting for the invoice but accounting is not matter to make the payment we are talking about process create validate account if require approve and make the payment so this is a process will follow so when you are making the payment okay to create the invoice these details are required but to make the payment order information we require bank account when I talk about a payment the bank account details are required by using which a bank account do I am going to make the payment which is check we are going to use if you are going to process the payment through check which cheque you are going to use is all the information you have to specify in the system so any questions here please okay so any questions here peace so what is the use of accounts payable simply you can say with accounts payables we can create the invoices and we can process the payment this is a simple point you can remember by using accounts payables application we can create the purchase invoices and we can process the payment ok or else if you want to burn with a very simplified definition for accounts payable simply you can say by using accounts payables you can maintain the suppliers liability that is a primary purpose when you have a sub and he mainly and then you can process the payment the simple definition you can say we can use the cons payables to maintain the suppliers liability that means to supplier how much we have to pay that information you can maintain when we have that information we can take the initiate of making the payment ok this accounts payable application will have a communication with each other applications that well be discussing going forward so that we call as integration account payables application where has a integration connectivity with which other applications and the word purpose what data will comes into accounts payables what data goes out from the accounts payables from inflow on it outflow of the data from the different different applications where these accounts payables is connected for the respective business process those points will be discussing once we start with our phones payable first well see how we can create the invoices and now we can process the payments after understanding that will complete the setups after completing the setups well start creating the invoice and payments then well talk about that point so what are the different purposes the accounts payables will have a integration connectivity with other applications and what data flows in and out well be discussing ok so within the accounts payable so you can create the purchase invoices and payments when I talk about purchase invoices we have a different type of invoices in the tables ok based on the different purpose ok based on the different business activity which you do in the payables application you can create the different type of invoices well be discussing how many type of invoices we have what is the purpose of this invoice and how many type of payments we have what is the purpose well discuss first after discussing that okay we can after discussing invoice type and payment as we have we have few other concepts also a few other futures which we should understand from payables we will discuss about those futures no cheap business scenario or the features well be using as a part of solution from system theoretically will understand after that the same will be executing in the system process after completing the required setups okay so this is what just very high level you have to understand the invoice related information so when I create the payment well be using them well select invoice for which invoice you want to make the payment within the invoice well have software information also by using which a bank account you are processing the payment will make the payment once you make the payment that information will be available in the cash management you want it to do anything now see the cash management how many payments you are crossing okay how many payments you are creating within the payables automatically the payment information will be available in the cash management what purpose payment information is required in the cash management what purpose or what purpose payment information is required in the cash management shell conciliation reconciliation installation when you get the payment information to cash management once we get the pavement from banker from accounts payables well get payment information to cash management between these 2 rakaats payables payment record and bank statement payment record these two will be cross checking that only we call as bank statement reconciliation for payments the same we will do for receipts also when we work on the civils when in create receipt that information house will come into cash management so there is some difference when you have a payment information in AP that will come automatically into cash management but when you have a receipt in account receivables that wont come into cm automatically for that we have to perform certain process but in case of AP you no need to do anything create payment wont find in cash management also along with the papers inflate the payment you can see in the payments tables the same payment information directly available in the Cashman has been to automatically the data goes to cash management for a translation purpose okay in accounts payables we can create multiple invoices multiple type of and watch different type of invoices different type of payments along with that we have many features ok which we can manage the payment related processes by using those features damn system system point of you on the business point of view system access point of view the real business process point of view have many features which you have to understand ok any questions based on this discussion please okay fine okay now well see what are the different type of invoices we have in accounts payables just please make a note hopefully you are taking all the points what we are discussing so we will see what are the type of invoices same type of invoices in AP accounts payables so every invoice got specific purpose those also will be discussing lets see what are the type of invoices we have in AP just make a note standard invoice and say David memo this is all genuine only David memory noise you can call but generally we use the term as David memo only these all are in mice types only standard and wise David memo invoice create no man voice but when we just use that name we dont include an invoice with it that said David memo other one is credit memo invoice another invoice type is mixed in wise and say repayment invoice say expense report invoice recurring invoice say withholding tax invoice so interest invoice you can take recurring I taken say written a witness release invoice transportation invoice okay transportation voice standard debit create mixed equipment expose recurring so these are the different type of invoices we have in accounts payables we can include one more but basically that invoice will be resulted based on renewables process but that would be created in AP lets include here will understand the invoice type is payment request payment request invoice ok payment request invoice these are the different type of invoices we have in accounts payables is all got different purpose why we create standard invoice David MoMA invoice credit no more invoice Mixon wise prepayment expense reported invoice recurring invoice withholding tax invoice interest in wise that means release invoice and transportation invoice and payment request invoice the same wave me how or different type of payments type of payments the type of payments means same annual payment and quick payments on say APR netting these are the payment types the solution has a type of payments payment type both are same type of payments payment types let me write as a payment types okay man will be men speak payments APR netting is another payment type and we have other type called as a refund so these are the different type of payments we have these four are standard along with that as a part of process will process zero payments also that I will just make a note this is a separate concept zero fairness but dont include water the type of payments means you dont need to include zero payments just you can remember these this is a additional concept separate concept which comes from the payments but its not part of standard functionality or parietal provides based on your business scenario so you can process zero payments also okay so payment types manual peak APR not agree fund just this just making motor you dont count into the payment types but its relevant so make it one in the same way they are the different type of invoices we can create in the system first well discuss all these types in which a business case which invoice type will be using when we use man will peak APR netting and refund those points also zero payments all will discuss after discussing these invites types and payments we will go with the payable setups after completing the payable setups well start working on all these invoice types and all these payment types after completing these invoice types creation payment creation within the system well go and discuss few more concepts which we should understand in the papers along with these invoices and payments you have many other features many other features within the accounts payable we will discuss theoretically then we can start working on the system if any setup is required to work on that concept will complete the setup and well be working otherwise no setups request right away well be just looking into the process how it works generator payables departmental later activity which can be executed in the system so any questions from anyone please right no questions so this invoice types and payment types well discuss in the tomorrow session and we will try to complete payable setups also in tomorrows session okay if you have any questions on todays session please if no questions we can wind up for today Alex well tomorrow mean Monday yes correct a chance can you send me the recording of all the last semester I will be sending today and what I will do is Ill just Ill place the articles in the Google Drive and I will be sharing from today onwards Google Drive access to everyone and one more point is once we complete the specific session that article will be directly placing in the Google Drive only we are not going to send separate email so you can directly access Google Drive you will be finding that every session articles within that no separate mail will be receiving for each and every session related article okay just want you to know you have completed the Penn Relays or material that the depths of the Earths we have completed this since correct correct correct we completed multi off setups we completed we discussed related to the multi got how it rose and other points sorry some part of the GL GL we didnt cover just we created primarily will be completing all our subledger applications you can eight as a point like this is going to be our first application tables as a part of Finance first will complete payables then resume cash management fix it ourselves then finally well move GL along with this fight it means working on basic concepts in inventory choosing order management and ie business tax axles will be working approvals and SLA other data out of the pendings inventory purchasing sorry inventory purchasing all these you have done no no we need to work on that basic setups we didnt start with the transfer concourses so as a part of multi arc environment to use those applications what we included for multi or definition use those application we completed basic setup so that well be able to test well be able to work on p2p cycle I can go through this redesign I think you can go through that article so if you have any questions we can connect and discuss and the articles will help you understand what we are expecting still if you have any questions we can discuss thats how we can manage here from greedy no no no we just I think this is like a 15th class 15 yeah thank you yeah so any other questions from anyone please it seems to no questions okay well connect in the next session then we talked about the invoice and pavement types and complete the payables configuration also in the same session yeah then we can go ahead with our invoice creation of pavement creationp

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