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

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