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Saturday, 12 March 2016

Invoice to Payment Process Flow in Payables

Invoice to Payment Process Flow in Oracle Payables 


In this blog we will see invoice to payment process flow in oracle payables r12/cloud/fusion

We will also see "What are the steps to process a invoice in accounts payable?/What is invoice to payment process?"

Invoice to Payment process flow in oracle cloud payables follows the following 6 steps


  1. Entering/Import the Supplier Invoices into the Application.
  2. Matching the invoice to the Purchase Order or to the Receipt ( this is optional )
  3. Validation of the invoice
  4. Resolving automatic invoice holds if any
  5. Sending the invoices for approval and approving invoices
  6. Creating and approve the payments


Invoice to Payment process flow in oracle cloud payables steps in detail


Step 1: Entering/Import the Supplier Invoices into the Application


The first step in invoice to payment process flow in oracle payables, we have to enter the invoice information into the payable module. You can manually enter an invoice in the form or from a invoice workbench form or quick invoice. You can also run the interface for invoice, and after that, you can import the invoices. Also, you can generate an invoice from the receipt of your PO as well. In order to do this, you will have to run the “send pay on receipt" and then "Auto Invoice program “to create the invoice form the receipt.

Step 2: Matching the invoice to the purchase order or the receipt (optional)


If you have created an Invoice from a purchase order, you can match the invoice quantity and price of the invoice to the purchase order from which it is created. Invoice and be matched to the purchase order via 2 way matching or 3-way matching.

Step 3: Validation of Invoices


Once the invoice is created in payables, you have to validate the invoice.  This can be done by validating the invoice form the invoice workbench or you can run the invoice validation program and validate the invoices in mass. The validation process performs few checks on the invoice. 1st, it checks to if there is any hold is applied on the invoice or not .  Then it calculates and apply the tax amount on the invoice, verifies the GL period statuses, it also verifies the exchange rates, and verifies whether the  distribution information is valid or not.


Step 4:  Resolving the Invoice Holds if any


Once the validation process completes it puts holds (if any ) on the invoices if required. These holds needs to be removed before you make payment for the invoice. Some holds can be released manually and some can't. 


Step 5: Sending the invoices for approval and approving invoices


Once all the invoices are validated and all the holds are removed from the invoices, these needs to be approved ( if approval for invoices is setup).  The invoices meeting the approval rule criteria will be sent for approval to the respective approvers via email notification.

Step 6:  Creating and Approve the payments


Once the invoices are validated and approved we are ready to pay to the supplier. You can pay invoices manually or you can pay invoices in batch due for payment. To pay invoices in  batch, we can use the payment process  request, and select a suitable template. The payment process request identifies the invoices and you can make the payment of invoices in batch.

All the steps mentioned above combined forms the Invoice to payment process in oracle payables

                                                                                                                         

Invoice to Payment Process Flow in Oracle Payables Payment Process Flow| Invoice payment process Payment Process flow in oracle invoice to payment process flow in oracle payables r12


Tuesday, 8 March 2016

Oracle Multi-org structure In Oracle


Multi-org structure in Oracle


Multi-org structure in Oracle


In this post we will see what is multi org structure in oracle and will discuss this with detailed example.


Prior to the introduction of concept - Multi-Org structure in oracle, all of the Operating Unit or a business unit required a separate-separate Oracle instances. There was no possibility of One-to-many relationships between Sets of Books, Legal Entities, and Operating Units within one Oracle environment. 


Introduction of Oracle Multi-org structure In Oracle


Multi-org architecture in oracle is an application server-side enhancement which allowed multiple operating units and it's relationships to be defined in a single installation of Oracle Applications. This ensured that the data across each operation unit is separate and secure. 

In Oracle Multi-org structure user is allowed to logically partition its application data into one database. This type of organization called an Operating Unit , whose purpose is to secure your application data. It now supports multiple organizations of the enterprise in a single database application. It provided additional security to the data of different organizations in the enterprise.


Multi org structure means set-up of multiple business groups under one application installation.

Following is the pictorial representation of multi org structure in oracle for a business


where ATC INDIA Limited is taken as example.

Oracle Multi-org structure

Business group

Where business org (ATC INDIA) is the top most level. It typically manages human resources level info across various locations .

Ledger

ledger consists of '4 c'  i.e Calendar , currency, cart of accounts and SLA(subledger accounting)
As currency, calendar changes from country to country we require ledger to maintain them.

Legal Entity 

Legal entity is setup to maintain Govt. taxation, TAN, PAN information. labor laws and rules 

Operating Unit 

It handles sales and distribution operations.

Inventory Org  

Inventory org is the physical location where the items are kept. It maintains Items information 


                                                                                                                                      

Oracle Multi-org structure |Oracle application multi org structure | Multi org structure in oracle

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