1. BR.100 APPLICATION SETUP DOCUMENT
ORACLE ACCOUNTS PAYABLES 12.1.3
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2. Oracle Applications Implementation 2
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3. Oracle Applications Implementation 3
Contents
DOCUMENT CONTROL.......................................................................................................................................................................................2
CONTENTS..............................................................................................................................................................................................................3
INTRODUCTION....................................................................................................................................................................................................5
Purpose.............................................................................................................................................................................................................5
Background.....................................................................................................................................................................................................5
Scope and Application..................................................................................................................................................................................5
Related Documents.........................................................................................................................................................................................5
APPLICATION SETUP..........................................................................................................................................................................................6
Step FIN-1 Accounting Flexfield..............................................................................................................................................................6
Step FIN-2 System Calendar Types (Optional) .....................................................................................................................................6
Step FIN-3 System Calendar Periods ......................................................................................................................................................7
Step FIN-4 Define Currencies (Optional)...............................................................................................................................................7
Step FIN-5 Define Accounting Flexfield Combinations (Optional) ..................................................................................................7
Step FIN-6 Define Set of Books.................................................................................................................................................................7
Step FIN-7 Assign Set of Books to a Responsibility..............................................................................................................................7
Step FIN-8 Define Daily Conversion Rate Types (Optional) ..............................................................................................................8
Step FIN-9 Define Rates (Optional).........................................................................................................................................................8
Step AP-1 Choose a Primary Set of Books..............................................................................................................................................8
Step AP-2 Payment Terms ..........................................................................................................................................................................9
Step AP-3 Matching Tolerances (Optional) (Not Defined for ) .......................................................................................................11
Step AP-4 Define Tax Names and Groups (Optional) ........................................................................................................................13
Step AP-5 Approval Codes ......................................................................................................................................................................13
Step AP-6 Distribution Sets (Not Applicable for ) ...........................................................................Error! Bookmark not defined.
Step AP-7 Payables Quick Codes...........................................................................................................................................................15
Step AP-8 Payment Programs and Formats .........................................................................................................................................18
Step AP-9 Payment Interest Rates (Not Implemented) .......................................................................................................................20
Step AP-10 Expense Report Types (Not Implemented)........................................................................................................................21
Step AP-11 Employee Quick Codes ........................................................................................................................................................22
Step AP-12 Locations ................................................................................................................................................................................22
Step AP-13 Employees...............................................................................................................................................................................23
Step AP-14 Reporting Entities (Not Applicable) .................................................................................................................................23
Step AP-15 Income Tax Regions (Not Applicable) ..............................................................................................................................23
Step AP-16 Financials Options ...............................................................................................................................................................24
Step AP-17 System Options and Defaults...............................................................................................................................................26
Step AP-18 Flexible Address Formats....................................................................................................................................................31
Step AP-19 Countries and Territories....................................................................................................................................................31
Step AP-20 Bank Accounts.......................................................................................................................................................................32
Step AP-21 Open Periods..........................................................................................................................................................................36
Step AP-22 Define Report Sets (Optional) ............................................................................................................................................36
Step AP-23 Report Formats (Optional) .................................................................................................................................................37
Step AP-24 AutoClear - Bank File Specifications (Optional)...........................................................................................................37
Step AP-25 Payables Period Types and Periods (Optional) .............................................................................................................37
Step AP-26 Budgetary Control (Optional) ...........................................................................................................................................38
Step AP-27 Implement Sequential Numbering......................................................................................................................................38
Step AP-28 Define Descriptive Flexfields (Optional)..........................................................................................................................38
4. Oracle Applications Implementation 4
Step AP-29 Set Profile Options (Optional) ...........................................................................................................................................39
OPEN AND CLOSED ISSUES............................................................................................................................................................................40
Open Issues ....................................................................................................................................................................................................40
Closed Issues .................................................................................................................................................................................................40
5. Oracle Applications Implementation 5
Introduction
Purpose
The purpose of this Application Configuration document is to define the
Set-up/configuration of the Accounts Payables application.
Background
The Operations Analysis phase of an application implementation project operates to identify
business requirements. The business requirements are typically expressed in the form of process
flows and answers to Process Analysis questionnaires. Users requirements definition also is
used in defining business requirements. These business requirements are then mapped to:
Business Requirements Mapping Form
Application configuration document; (This document)
Scope and Application
This document relates to the setup of the Accounts Payable application. It does not include any
modifications to the application so as to meet requirements over and above the standard
functionality of the application. You will need to refer to mapping form / solution design
documents for application extensions, interfaces and data conversions.
Related Documents
This document should be read in conjunction with the following documents:
Current Business Baseline document
Process Analysis Questionnaires
User Requirements Definition document
Business Requirement Mapping Form
Data conversions deliverables
6. Oracle Applications Implementation 6
Application Setup
You need to define at least one set of books before you can implement and use your Oracle
Payables application. A set of books includes an accounting calendar, a functional currency,
and an Accounting Flexfield structure (a chart of Accounts).
If you have previously defined your set of books while setting up a different Oracle Applications
product, proceed to the next step. If you have not defined your set of books, refer to the Setting
Up Oracle Applications Set of Books section to complete the following steps:
Step FIN-1: Define Your Accounting Flexfield
Step FIN-2: Define Your Calendar Period Types (Optional)
Step FIN-3: Define Your Calendar Periods
Step FIN-4: Define Your Currencies (Optional)
Step FIN-5: Define Your Accounting Flexfield Combinations (Optional)
Step FIN-6: Define Your Set of Books
Step FIN-7: Assign Your Set of Books to a Responsibility
Step FIN-8: Define Your Daily Conversion Rate Types (Optional)
Step FIN-9: Define Your Rates (Optional)
Step FIN-1 Accounting Flexfield
Completed as part of General Ledger setup
Refer General Ledger Configuration document
Step FIN-2 System Calendar Types (Optional)
Completed as part of General Ledger setup
Refer General Ledger Configuration document
7. Oracle Applications Implementation 7
Step FIN-3 System Calendar Periods
Completed as part of General Ledger setup
Refer General Ledger Configuration document
Step FIN-4 Define Currencies (Optional)
Completed as part of General Ledger setup
Refer General Ledger Configuration document
Step FIN-5 Define Accounting Flexfield Combinations (Optional)
Completed as part of General Ledger setup
Refer General Ledger Configuration document
Step FIN-6 Define Set of Books
Completed as part of General Ledger setup
Refer General Ledger Configuration document
Step FIN-7 Assign Set of Books to a Responsibility
Completed as part of General Ledger setup
Refer General Ledger Configuration document
8. Oracle Applications Implementation 8
Step FIN-8 Define Daily Conversion Rate Types (Optional)
Completed as part of General Ledger setup
Refer General Ledger Configuration document
Step FIN-9 Define Rates (Optional)
Completed as part of General Ledger setup
Refer General Ledger Configuration document
Step AP-1 Choose a Primary Set of Books
As you will be using accrual accounting, you need to define one set of books in the General Ledger.
The accrual sets of book to be used by Oracle Accounts Payable are defined in the Define Financial
Options form (Step AP-16) and in the Define System Options and Defaults form (Step AP-17).
Choose Set of Books
Navigation: AP: Setup > Set of Books> Choose
Field Value
Set of Books
Chart of Accounts
Functional Currency
9. Oracle Applications Implementation 9
Field Value
Accounting Calendar
Note: Select Set of Books from the List of Values
Refer General Ledger Setup (Step GL-1)
Step AP-2 Payment Terms
Define the payment terms, including discount, due days and discount percent, you use to schedule
payment to your vendors. You can define split payment terms for multiple payments, proxima (day of
month) terms, and multiple discount terms. Oracle Payables use payment terms to create invoice
payment schedules for you automatically when you enter an invoice. Once you define payment terms,
you can assign them to vendors and invoices. You cannot combine the percentage due and amounts
due for one payment term.
Navigation: AP: Setup > Invoice > Payment Terms
Field Value
Payment Term
Description
Cutoff Day
Rank
Effective Date From
Effective Date To
Due
% Due
Amount
Calendar
10. Oracle Applications Implementation 10
Field Value
Fixed Date
Days
Day of Month
Months Ahead
First Discount
% Discount
Days
Day of Month
Months Ahead
Second Discount
% Discount
Days
Day of Month
Months Ahead
Third Discount
%Discount
Days
Days of Month
Months Ahead
Likewise, all Payment Terms have to be defined.
Step AP-3 Defining Distribution Sets (Optional)
You can use a Distribution Set to automatically enter distributions for an invoice when you are not
matching it to a purchase order. For example, you can create for an advertising supplier a Distribution
Set that allocates advertising expense on an invoice to four advertising departments.
You can assign a default Distribution Set to a supplier site so Payables will use it for every invoice you
enter for that supplier site. If you do not assign a default Distribution Set to a supplier site, you can
always assign a Distribution Set to an invoice when you enter it.
11. Oracle Applications Implementation 11
Navigation: AP: Setup > Invoice > Distribution Sets
Name
Type
Description
Inactive On
Num %
Project
Related
Account Description
Income
Tax Type
Tax
Code
Step AP-3 Matching Tolerances (Optional)
You can specify the acceptable range of discrepancies between an invoice matched to a purchase order
and the related purchase order, receipt information and tax information. Your Oracle Payables
application places a payment hold against any matched invoice that differs from the purchase order by
more than the tolerances you specify.
You can specify tolerances for price, tax, and quantity variances between what you ordered what you
were billed for, and what you received.
12. Oracle Applications Implementation 12
Navigation: Setup > Invoice > Tolerances
Field Option Value Active/Inactive
PO Matching
Quantity Ordered % Optional
Hold Name Optional
Maximum Quantity Ordered Optional
Hold Name Optional
Quantity Received % Optional
Hold Name Optional
Maximum Quantity Received Optional
Hold Name Optional
Price % Optional
Hold Name Optional
Exchange Rate Amount Optional
Hold Name Optional
Shipment Amount Optional
Hold Name Optional
Total Amount Optional
Hold Name Optional
Tax
Tax % Optional
Hold Name Optional
Tax Amount Range Optional
Hold Name Optional
13. Oracle Applications Implementation 13
Step AP-4 Define Tax Names and Groups (Optional)
You can specify the tax names that you assign to an invoice or invoice distribution line. You can also
assign a tax name to a vendor site, so that the invoices you enter for the vendor site are assigned the tax
name by default.
The following must be completed before defining tax codes:
Define accounting Flexfield (Step FIN-1)
Before using this form to create Withholding Tax type tax names, you should also define your tax
authorities as vendors. These vendors will be defined as part of Purchasing.
This step is not required for .
Navigation: Setup > Tax > Codes (Not Applicable for )
Step AP-5 Approval Codes
Standard Oracle Approval Codes to be used.
Use the Define Invoice Approvals form to define the approval codes that you use to manually place and
release holds on your invoices. You can define an unlimited number of hold and release reasons. You
can apply any hold you define to an invoice during invoice entry. You can then use the release reason
you define to remove the hold. You cannot pay an invoice that has a hold applied to it. If you assign a
posting hold code to an invoice you cannot post the invoice until you approve the hold.
14. Oracle Applications Implementation 14
Your Oracle Payables application also provides predefined hold and release reasons that you can use
to manually place or remove a hold on an invoice, but you cannot modify them. The Standard Oracle
Approval Codes will be used at .
Navigation: Setup > Invoice > Hold and Release Names
Name Description Type
Accounting
Allowed
Manual
Release
Allowed
Inactiv
e On
Amount
Reduced
Amount
Validated
Approved
Exchange
Protocol Hold
Invoice Cancel
Can't Close PO
Can't Try PO
Close
Currency
Difference
Holds Quick
Released
Insufficient
Funds
Invalid PO
Invoice Quick
Released
Max Qty Ord
Max Qty Recd
Max Rate
Amount
Max Ship
Amount
15. Oracle Applications Implementation 15
Match Override
Matched
Max Total
Amount
Prepaid
Amount
Payment over
limit
PO Not
Approved
Matching
Required
Price
Qty Ord
Qty Recd
Quality
Rec Exception
Variance
Corrected
Variance
Override
Supplier
Supplier
Updated
Step AP-7 Payables Quick Codes
You can create as many QuickCodes for each item as you require. You cannot change the type or name
of a QuickCode after you enter it, but you can update the description and inactive date at any time.
The following data will be created for the Requirement. Additional codes can be created as and when
required.
Disbursement Type
Don't Pay Reason
FOB
Freight Terms
Pay Group
Source
Vendor Type
16. Oracle Applications Implementation 16
Navigation: Setup > Lookups > Payables
Type Meaning Application Description
Code Meaning Description Tag From To Enabled
Required Required Optional
Type Meaning Application Description
Code Meaning Description Tag From To Enabled
Required Required Optional
17. Oracle Applications Implementation 17
Code Meaning Description Tag From To Enabled
Type Meaning Application Description
Code Meaning Description Tag From To Enabled
Required Required Optional
Type Meaning Application Description
Code Meaning Description Tag From To Enabled
Required Required Optional
Type Meaning Application Description
Code Meaning Description Tag From To Enabled
Required Required Optional
Type Meaning Application Description
Field Code Meaning Description Tag From To Enabled
Value
Required Required Optional
18. Oracle Applications Implementation 18
Field Code Meaning Description Tag From To Enabled
Step AP-8 Payment Programs and Formats
You can use the payment programs that Oracle Payables application provides for creating invoice
payments or you can define your own programs. If you modify an existing payment program or create
a new one, you must define the payment program in the Define Automatic Payment Programs form to
use the program. The Oracle Payables application uses three types of payment programs to create
payments: Format Payments, Build Payments, and Remittance Advice.
The standard Oracle payment program will be used at .
Format Payments
A program Payables uses to format your payment documents. During the Format Payments program,
Payables uses your payment format to create the layout of your checks or electronic funds transfers.
Build Payments
A program Payables uses to build payments for the invoices in a payment batch. Payables submit this
program during payment batch selection to calculate the payment totals for your payments and
determine on which payment documents the payment appears.
Payables provide a predefined Build Payments program called the Standard Build Payments Program.
Payables uses this standard build program to group the selected invoices for each payment, order the
payments using the order option you specify in the payments batches Summary or detail window,
create any necessary overflow documents, and determine the total number and amount of payments for
a payment batch.
Remittance Advice
A program Payables uses to format a separate remittance advice document. For example, you can use a
remittance program to create separate remittance advice documents for your electronic funds transfers.
Navigation: Setup > Payment > Programs
Field Name Type Registered Name
Value
19. Oracle Applications Implementation 19
Payment Formats
You can use the payment formats your Oracle Payables application provides or you can use the Define
Payment Formats form to define your own payment formats. You should define additional payment
formats only if you want to modify an existing payment format, if you make payments in foreign
currencies, or if you want to use multiple currency bank accounts. You must select both a format and
build payment program for each new payment format you define.
Use the Payment Formats window to define the payment formats you need to define payment
documents in the Banks window. You can define as many payment formats as you require for each
payment method; however, each payment format must be unique for that payment method.
You choose a Build Payments program, and a Format Payments program for each payment format.
You can choose any payment program that you have defined in the Payment Programs window or any
standard program Payables provides. You do not have to define a Separate Remittance Advice
program for a payment format, because you can include the separate remittance advice program in
your Format Payments program. Each Format Payments program provided by Payables includes a
remittance advice program. You can, however, control how many invoices to include on your
remittance advice.
You can define a separate payment format for each of your payment currencies. If you assign a
currency to a payment format, you can use that format only with a bank account whose bank account
currency is the same as the format currency. If you use a payment format to pay multiple currency
invoices and do not assign a currency to the payment format, you can only use that format with a bank
account for which you also allow payment of multiple currency invoices. When you define a bank
account, you can only allow payment of multiple currency invoices if the bank account currency is
your functional currency.
You cannot define a payment format for a manual future payment method or a future payment method
unless you enable the Allow Future Payment Method Payables option.
You can also specify the number of invoices allowed per payment, the invoice grouping, the position of
the check stub (for payment formats using payment programs that produce a stub), and whether the
payment format can be used for multiple currencies and zero-amount payments only.
Navigation: Setup>Payment>Formats
The following payment formats needs to be defined for :
Field Name Details Currency
Remittanc
e
No of
Invoices
Programs
20. Oracle Applications Implementation 20
Field Name Details Currency
Remittanc
e
No of
Invoices
Programs
Value
Note: The following must be completed before defining payment formats:
Define payment programs
Navigation: Setup > Payment > Formats
Field Option Value Value
Payment Format
Payment Format Required
Payment Method Required
Zero Amount
Payment Only
Optional
Group By Due Date Optional
Currency Required
Multiple
Single
Remittance Required
Before Document
After Document
None
Number of Invoices Required
Programs
Build Payments Required
Format Payments Required
Separate Remittance Optional
Step AP-9 Payment Interest Rates (Not Implemented)
In the Payment Interest Rates screen you define interest rates Payables uses to calculate and pay interest on
overdue invoices. Payables calculate interest only on overdue invoices if you enable the Automatic Interest
Calculation Payables option.
For each rate you define, specify during which dates the rate is effective. Effective dates of rates cannot
overlap. You can add or change a rate at any time. Payables use the interest rate that is valid on your payment
date to calculate and pay interest on overdue invoices.
Note: Enable the Automatic Interest Calculation Payables option.
Navigation: Setup>Payment>Interest Rates (Not Applicable)
21. Oracle Applications Implementation 21
To define payment interest rates:
In the Payment Interest Rates screen, enter an interest rate, and enter a start date and end date between which
the interest rate is effective.
This step is not required for .
Step AP-10 Expense Report Types (Not Implemented)
This allows you to predefine a type of expense report you regularly use. You can define default values for
expense line items and you can then choose those items from a list of values when you enter expense reports.
During Invoice Import, Payables uses the expense item information to create invoice distributions.
For example, you may use one expense report format for travel expenses and another expense report format for
other business expenses. These templates nominate Accounting Flexfield segments, which can be part or fully
complete.
Note: The following must be completed before defining expense reports:
Define accounting Flexfield (Step FIN-1)
Define tax codes (Step AP-4)
Navigation: Setup > Invoice > Expense Report Templates
Field Option Value
Template Name
Description
Inactive Date
Enable for Internet
Expenses
Expense Items Zone
Field
Expense
Item
Expenses
Category Type
Card
Expense
Type
Includes
Tax
Tax
code
GL
Account
Projects
Expenditure
type
Policy
Schedule
End
Date
Value
Internet Expenses Attributes Zone
Field Option Value
22. Oracle Applications Implementation 22
Prompt Optional
Viewable From All Templates Optional
Receipt Required Above Optional
Calculate Amount Optional
Justification Required Optional
Step AP-11 Employee Quick Codes
You can define the following codes to use when you enter employees:
County
State
Title
Sex
This step has been completed as part of Oracle Human Resources Setup. Refer Human Resources
Configuration Document.
Note: Seed data provides sufficient detail for describing employee titles, gender etc.
Navigation: Setup > Lookups > Employee
Field Option Value
Type Required
Application Required
Description Optional
Access Level
User Required
Extensible Required
System Required
QuickCodes Zone
Field
Code Meaning Description Effective
Dates From
Effective
Dates To
Enabled
Value
Required Required Optional Optional Optional Required
Step AP-12 Locations
23. Oracle Applications Implementation 23
You need to define and maintain the locations you use for your employees and your organization. You select
from the locations you define when you assign a location to an employee.
You can select the locations you enter in this form when you create reporting entities or when you enter an
assignment for an employee.
This step has been completed as part of Multi Org Setup. Refer Multi Org Configuration document.
Step AP-13 Employees
You must enter employees before you can enter an expense report in XpenseXpress for the employee. If you
do not plan to use XpenseXpress to enter expense reports, you can skip this step.
If you do not install Oracle Personnel with your Oracle Payables application, use the Enter Employee form to
define and maintain employees in your Oracle Payables application. You can enable the Automatically
Create Employee as supplier payables option to do this automatically during invoice import, or you can
manually enter the employee as a supplier in the supplier window. You can easily change the location
information of an employee as often as you want. If you install Oracle Personnel, use the employee forms in
Oracle Personnel instead to enter and maintain employees. will maintain employees for this purpose as and
when required from the Payables Module.
Note: The following must be completed before defining employees who will be submitting expense reports:
Define locations (Step AP-12)
Define personnel QuickCodes (Step AP-11)
Choose your employee number generation method
Define Flexfield combinations (Step FIN-5)
Employees require Jobs and Positions to be defined prior to entering employee details. Refer Purchasing
Setup Application Configuration Document for additional details.
Step AP-14 Reporting Entities (Not Applicable)
Navigation: Setup > Tax > Reporting Entities
This feature is not required for . Used for tax reporting only.
Step AP-15 Income Tax Regions (Not Applicable)
24. Oracle Applications Implementation 24
Navigation: Setup > Tax > Regions
This feature is not required for . Used for tax reporting only.
Step AP-16 Financials Options
During set up, you must select a set of books for your Oracle Payables application (Step Ap-1). After, you can
enable the options and controls you want to use throughout your Oracle Payables application and other
Oracle applications through the Define Financials Options and Define Payables Option forms. You can also
define defaults to increase the data entry productivity of your accounts payable staff.
For example, you can define a default Accounts Payable Accounting Flexfield, which your Oracle Payables
application automatically assigns to all vendors. The vendor site's Accounts Payable Accounting Flexfield
defaults to all invoices you enter for that vendor site. Of course, you can always override default at any level.
Any change to the payment terms will only be used as default for subsequent transactions. Oracle Payables,
Purchasing and Assets share values you enter in this window.
Note: The following must be completed before defining Financial Options:
Define set of books (Step FIN-6)
Define payment terms (Step AP-2)
Define currency (Step FIN-4)
Prerequisites:
Ensure that the Purchasing Module setup for Business Group, and Inventory Organization has been
completed prior to completing this step
Navigation: Setup > Options > Financials
Accounting Information
Field Option Value
Future Period Limit Required
GL Accounts
Liability Required
Prepayment Required
Future Dated Payment Optional
Discount Taken Required
PO Rate Variance Gain Required
PO Rate Variance Loss Required
Expenses Clearing Optional
Supplier Entry Information
Field Option Value
25. Oracle Applications Implementation 25
Field Option Value
RFQ Only Site Optional
Hold Unmatched Invoices Optional
Invoice Match Option Required
Supplier Number
Entry Required
Type Display
Next Automatic Number
Required
Conditionally
Supplier - Payables Information
Field Option Value
Payment Terms Optional
Payment Method Required
Receipt Acceptance Days Optional
Always Take Discount Required
Pay Alone Required
Supplier - Purchasing Information
Field Option Value
Ship-To-Location Optional
Bill-To-Location Optional
Inventory Organization Required
Ship VIA Optional
FOB Optional
Freight Terms Optional
Encumbrance Information
Field Option Value
Use requisition encumbrance Required
Encumbrance Type Required
Reserve at Completion Required
Use P O Encumbrance Required
P O Encumbrance Type Required
Invoice Encumbrance Type Required
Vat Registration Information (Not Applicable)
Field Option Value
Default Tax Code Optional
VAT Registration Optional
Member State Optional
26. Oracle Applications Implementation 26
Field Option Value
VAT Registration Number Optional
Enable Recoverable Tax Optional
Default Recovery Rate Optional
Calculation Rules
Rounding Rule Required
Precision Optional
Min Accountable Unit Optional
Human Resources
Field Option Value
Business Group Required
Expense Reimbursement
Address
Required
Use Approval Hierarchies Required
Employee Number
Method Required
Next Automatic Number Optional
Step AP-17 System Options and Defaults
You need to define the options and controls you want to use throughout your Oracle Payables application.
You can also define defaults to increase the data entry productivity of your accounts payable staff. For
example, you can define default payment terms for your expense reports, which Oracle Payables
automatically assigns to all employees expense reports you enter. Of course, you can always override default
at any level.
You can also use this form to enable the invoice and payment features in your Oracle Payables application,
such as Automatic Offsets and Automatic Interest Calculation in Oracle Payables.
Note: The following must be completed before defining Systems Options:
Define accounting Flexfield (Step FIN-1)
Define payment terms (Step AP-2)
Define currencies (Step FIN-4)
Navigation: Setup > Options > Payables
Accounting Methods Region
Field Option Value
27. Oracle Applications Implementation 27
Accounting Methods
Primary Accounting Method Optional
Set Of Books Display Only
Secondary Accounting Method Optional
Set Of Books Display Only
Automatic Offset Method
None Required
Balancing Required
Account Required
Transfer to GL Region
Field Option Value
Transfer to GL Interface
In Detail Optional
Summarize by Accounting Date Optional
Summarize by Accounting Period Optional
Transfer Reporting Book(s) Optional
Submit Journal Import Optional
Allow Override at Program Submission Optional
Payment Accounting Region
Field Option Value
Account for Payment
When Payment is Issued Optional
When Payment Clears Optional
Calculate Gain/Loss
For Each Invoice Optional
For Total Payment Optional
Account for Gain/Loss
When Payment is Issued Optional
When Payment Clears Optional
Use Future Dated Payment Account
From Payment Document Optional
From Supplier Site Optional
Currency Region
Field Option Value
Use Multiple Currencies Optional
Require Exchange Rate Entry Optional
Calculate User Exchange Rate Optional
Exchange Rate Type Optional
28. Oracle Applications Implementation 28
Field Option Value
GL Accounts Optional
Realized Gain Optional
Realized Loss Optional
Rounding Optional
Supplier Region
Field Option Value
Invoice Tolerance Required
Pay Group Optional
Invoice Currency Optional
Terms Date Basis Required
Pay Date Basis Optional
Bank Charges Bearer Optional
Tax Reporting
Combined Filing Program Optional
Use Pay Site’s Tax Region Optional
Income Tax region Optional
Invoice Region
Field Option Value
Main
Use Invoice Approval Workflow Optional
Confirm Date as Invoice Number Optional
Allow Online Validation Optional
Allow Document Category
Override
Optional
Allow Adjustments to Paid
Invoices
Optional
Recalculate Scheduled Payment Optional
Automatically Create Freight
Distribution
Optional
Freight Account
Cond.
Required
GL Date Basis
Invoice Date Optional
System Date Optional
Goods Received/Invoice Date Optional
Goods Received/System Date Optional
Prepayment
Payment Terms Optional
Settlement Days Optional
Build Prepayment Account when
Matching
Optional
29. Oracle Applications Implementation 29
Matching Region
Field Option Value
Allow Final Matching Optional
Allow Distribution Level Matching Optional
Allow Matching Account Override Optional
Transfer PO Descriptive Flex field Information Optional
Interest Region
Field Option Value
Allow Interest Invoices Optional
Prorate Across Overdue Invoice Optional
Minimum Interest Amount Optional
Interest Invoice Accounts
Expense Optional
Liability Optional
Expense Report Region
Field Option Value
Default Template Optional
Payment Terms Optional
Pay Group Optional
Payment Priority Optional
Apply Advances Required
Automatically Create Employee as Supplier Required
Hold Unmatched Expense Reports Required
Payment Region
Field Option Value
Bank Account Optional
Payment Batch Limit Optional
EFT User Number Optional
Additional Pay Through Days Optional
Allow Document Category Override Optional
Discount
Exclude Tax from discount Calculation Optional
Method Optional
Single Payment
Allow Print Optional
Allow Pre-Date Optional
Allow Void & Reissue Optional
Allow Address Change Optional
XML Payments
Automatic Confirmation Optional
Remit To Bank Account
Allow Remit-to Account Override Optional
Bank Charges
30. Oracle Applications Implementation 30
Field Option Value
Use Bank Charges Optional
Invoice Tax Region (Optional)
Field Option Value
Require Tax Entry at Header Optional
Use Automatic Tax Calculation Optional
Calculation Level
Header Optional
Tax Code Optional
Line Optional
Allow Calculation Level Override Optional
Distribution Amounts Include Tax Optional
Allow Override Optional
Withholding Tax Region (Optional)
Field Option Value
Use Withholding Tax Optional
Allow Manual Withholding Optional
Tax Group Optional
Apply Withholding Tax
Never Optional
At Invoice Validation Time Optional
At Payment Time Optional
Withholding Amount Basis
Include Discount Amount Optional
Include Tax Amount Optional
Create Withholding Invoice
Never Optional
At Invoice Validation Time Optional
At Payment Time Optional
Include Income Tax Type on Withholding Distributions
Tax Defaults and Rules Region
Field Option Value
Enforce Tax From Account Optional
Enforce Tax From Purchase Order Tax
name
Optional
Tax Code Defaults Value
Hierarchy
Value
PO for Matched Invoices Optional
31. Oracle Applications Implementation 31
Field Option Value
Supplier Site Optional
Supplier Optional
Account Optional
Financial Options Optional
Invoice Header Optional
Template Optional
Reports Region
Field Option Value
Accounts Payable Trial Balance Report
Relieve Future Dated Payment Liability
When Payment is Issued Optional
When Payment Matures Optional
When Payment Clears Optional
Report Sorting Optional
Sort by Alternative Field Optional
Step AP-18 Flexible Address Formats
Oracle Applications allow you to enter the customer, supplier, bank, cheque, and remit-to addresses in
country specific formats.
This is done by customizing the descriptive Flexfields to enter and display address information in the
appropriate formats. The Flexfield window opens if a country you enter has a flexible address style assigned
to it, allowing you to enter an address in a layout associated with that country. If there is no address style
associated with the country then the standard address format is used.
will use the standard address styles provided by the system.
Step AP-19 Countries and Territories
Navigation: Setup > Countries (VAT Not Applicable).
Use this screen to maintain country and territory in formation. You cannot enter a new country or territory in
this form, but you can update the name, description, VAT member state code, or address style for any of the
240 predefined countries or territories.
will use the standard address styles provided by the system for all Countries, no need to update any value in
this form.
32. Oracle Applications Implementation 32
Step AP-20 Bank Accounts
You need to define the banks and bank accounts from which you make payments in Oracle Payables. You
can define multiple payment documents to use with each bank account. You must select a payment format
for each payment document you define for a bank account. You must enter at least one bank, bank account,
and payment document before you can make payments in your Oracle Payables application. If you use
Oracle Cash Management you need to define a bank error account, a bank charges account and a cash
clearing account for each account you plan on reconciling.
Note: The following must be completed before defining bank accounts:
Define accounting Flexfield (Step FIN-1)
Define currencies (Step FIN-4)
Define set of books (Step FIN-6)
Define payment formats (Step AP-9)
Navigation: Setup > Payment > Banks
Bank Zone
Field Option Value
Bank
Name Required
Alternate Name Optional
Number Optional
Bank Branch
Name Required
Alternate Name Optional
Number Optional
Type Optional
RFC Identifier Optional
Institution Required
Description Optional
Inactive On Optional
EDI ID Number Optional
EDI Location Optional
EFT Number Optional
BIC Optional
Address
Country Optional
Address Optional
Address Line 1 Optional
City Optional
State Optional
County Optional
Postal Code Optional
Province Optional
Contact
Last Optional
First Optional
Middle Optional
33. Oracle Applications Implementation 33
Field Option Value
Title Optional
Prefix Optional
Phone Optional
Clearing House
Clearing House Optional
Branch Optional
Bank Accounts Zone
Field Option Value
Bank Accounts
Operating Unit Display
Agency Location code Optional
Name Required
Alternate Name Optional
Account Use Required
Account Type Optional
Number Required
Check Digits Optional
Currency Required
Inactive On Optional
Description Optional
GL Accounts
Cash Required
Description Display
Cash Clearing Optional
Description Display
Bank Charges Optional
Description Display
Bank Errors Optional
Description Display
Confirmed Receipts Optional
Description Display
Future Dated Payment Optional
Description Display
Receivables Options
Multiple Currency Receipts Optional
Remitted Receipts GL Account Optional
Description Display
Factored Receipts GL Account Optional
Description Display
Short Term Debt GL Account Optional
Description Display
More Receivables Options
Unapplied Receipts GL Account Optional
Description Display
Unidentified Receipts GL
Account
Optional
Description Display
34. Oracle Applications Implementation 34
Field Option Value
On Account Receipts Optional
Description Display
Earned Discounts GL Account Optional
Description Display
Unearned Discounts Optional
Payables Options
Maximum Outlay Optional
Multiple Currency Payments Optional
Maximum Payment Optional
Allow Zero Payments Optional
Minimum Payment Optional
Pooled Account Optional
Realized Gain GL Account Optional
Description Display
Realized Loss GL Account Optional
Description Display
Account Contacts
Last Optional
First Optional
Middle Optional
Title Optional
Prefix Optional
Phone Optional
Account Holder
Account Holder Optional
EFT Requestor ID Optional
35. Payables Document Zone-Document Information
Field Name
Disbursemen
t Type
Payment Format
Payment
Method
Inactive
Date
Value
Required Required Conditionally Required Display Optional
Note: The disbursement type “Recorded” is required if the cheques are manual cheques. If the cheques can be
manual and computer generated, then the disbursement type “combined” is required.
Payables Document Zone-Additional Information
Field Name Documen
t Last
Used
Document
Last
Available
Setup
Checks
Transmi
ssion
Code
Document
Category
Valu
e
Required Required Required Optional Optional Optional
Payables Document Zone-GL Accounts
Field Name Cash Clearing Bank Charges Bank Errors
Value
Required Required Required Optional
Payables Document Zone-Future Dated Payments
Field Name Future Date Use Account
Value
Required Required
36. Bank Transaction Codes Zone :
If you want to use Cash Management’s Auto Reconciliation feature, you must define, for each account and
bank; the transaction codes that your bank uses to identify different types of transactions on its statements.
You should define a bank transaction code for each code that you expect to receive from your bank. Since,
will use the Manual Reconciliation feature of Cash Management, no need to define Transaction Codes.
Note: Bank and Bank Accounts need to be defined for all Banks. is currently using 16 Bank Accounts, List of
Configured Bank Accounts is enclosed as an Annexure - 2.
Step AP-21 Open Periods
You need to open at least one accounting period in your Oracle Payables application before you can enter an
invoice or make a payment. You use the Control Period Statuses form to change the status of accounting
periods. The status of a period can be Never Opened, Open, Future, Closed, or Permanently Closed. You can
open and close periods in your Oracle Payables application independently of your Oracle General Ledger
application.
Note: Please note all AP periods should be opened accordingly with General Ledger periods.
Navigation: Accounting > Control Payables Periods
Field
Period Status
Period
Number
Fiscal Year
Period
Name
Begin Date End Date
Values
Step AP-22 Define Report Sets (Optional)
You can define report sets to make your report submission easier and more efficient. A report set is a group of
reports that you can submit all at one time to the concurrent manager. You assign a sequence to the reports in
a report set to determine the order in which the concurrent manager submits the reports.
Navigation: Other > Requests > Set
37. Oracle Applications Implementation 37
Step AP-23 Report Formats (Optional)
Aging Periods for Invoice Aging Report
You can also define the periods you want to use in your Invoice Aging Report. You can name each period
and define the order you want each period to print. You can easily change the format you set up and submit
another Invoice Aging Report whenever you want.
Navigation: Setup>Calendar>Aging Periods
Field Option Value
Name Required
Description Optional
Active Required
Column
Order
Days From Days To
Column Heading
First Second
Required Required Required Optional Optional
Step AP-24 AutoClear - Bank File Specifications (Optional)
Since is using GUI and implementing Cash Management this step is not required in Payables.
Step AP-25 Payables Period Types and Periods (Optional)
Use the Special Calendar window to define periods that Payables uses for Automatic Withholding tax,
Recurring invoices, and for the Key Indicators Report. For example, if you monitor staff productivity weekly,
use this window to define weekly periods for the Key Indicators calendar type.
The Report Run displays only checkbox indicates that a Key Indicators Report has been run for this period.
The checkbox is not applicable to Withholding Tax or Recurring Invoices calendar types.
38. Oracle Applications Implementation 38
Note: The periods you define in the Special Calendar window are completely separate from the periods you define in the
Accounting Calendar window for your AP Accounting Periods.
Navigation: Setup > Calendar > Special Calendar
At present there is no need at for Special Calendar and can be defined at the time of requirement.
Step AP-26 Budgetary Control (Optional)
Use the budgetary control feature to control actual and anticipated expenditures against your budget. To use
budgetary control, you must first install Oracle General Ledger, Oracle Purchasing, and Oracle Payables, or
Oracle Government General Ledger, Oracle Government Purchasing, and Oracle Government Payables. You
enable your budgetary control options and define your budgets in your Oracle General Ledger application.
This step is covered in Oracle General Ledger configuration.
Step AP-27 Implement Sequential Numbering
If you implement sequential numbering, you can assign a unique, sequential voucher number to any invoice
or payment. You can choose to manually assign the voucher number from a range of defined numbers or you
can set up your Oracle Payables application to automatically assign the number from a range of numbers.
To implement sequential numbering, your system administrator must first define document sequences for
each type of document you use (standard invoice, credit invoice, check, EFT, etc.) and document categories for
each document type. Your system administrator then assigns a document sequence to each document
category.
Note: To enable sequential numbering, enter Yes for the Sequential Numbering system Profile Option.
Since is running Oracle Payables parallely with HP System, it will use the same number by assigning it
manually for the current year and will use the automatic sequential numbering feature for the next year.
Step AP-28 Define Descriptive Flexfields (Optional)
Use Descriptive Flexfields to customize your application to capture additional details to fit your unique
business needs. You can also create context-sensitive Descriptive Flexfields that let you enter information
based on the value you entered in another field.
Note: To define a Descriptive Flexfield you need to:
39. Oracle Applications Implementation 39
Design your Descriptive Flexfield
Define Descriptive Flexfield Value Sets
Define Descriptive Flexfield Segments
Freeze and Compile your Descriptive Flexfield
Define Descriptive Flexfield Segment Values
Define Descriptive Flexfield Value Security Rules
For there is no requirement for Descriptive Flexfield.
Step AP-29 Set Profile Options (Optional)
Profile options specify how your Oracle Payables application controls access to and processes data. In
general, profile options can be set at one or more of the following levels: site, application, responsibility, and
user.
Navigation: Other > Profile
System Administrator > Profile > System
System Administrator > Profile > Personal
The following Profile setups are required to be completed in the System Administration Responsibility :
Field
Profile Name
Default
Value
User Value
Value
AP : Bank File character Set No Leave Blank
AP : Enter Alternate fields No No
AP : Sort by Alternate fields No No
AP : Use Invoice Batch Controls Yes Yes
Default Country
Saudi
Arabia
Saudi Arabia
Sequential Numbering No Partially Used
40. Oracle Applications Implementation 40
Open and Closed Issues
Open Issues
ID Issue Resolution Responsibility Target Date Impact Date
Closed Issues
ID Issue Resolution Responsibility Target Date Impact Date