INVOICES

Invoices

1. Invoice Entry and Matching

1.1 Types

Standard

A trade invoice you receive from a supplier.

Credit Memo

Enter a credit memo to record a credit for goods or services purchased.  Negative amount invoice created by a supplier and sent to you to notify you of a credit.

Debit Memo

Enter a credit memo to record a credit for goods or services purchased.  Negative amount invoice created by you and sent to a supplier to notify the supplier of a credit you are recording.

Expense Report

Used to enter expense reports for the employees.

PO Default

This type of invoice is created to match to a Purchase Order.  Selecting this type, Payables will ask you to enter Purchase Order Number.

Prepayment

This type of invoice you enter to make an advance payment to a supplier or employee.

QuickMatch

QuickMatch type invoice is created to match to all the Purchase Order Shipments.

Withholding Tax

Select the time at which you would like Payables to automatically create withholding tax invoices to remit withheld taxes to tax authorities.

Mixed

Mixed Invoices are invoices or credit/debit memos for which you can perform both positive and negative matching to purchase orders and to other invoices.

1.2 Methods of Invoice Entries

Manual Invoice Entry

You usually enter supplier invoices in either the Invoice Workbench or the Invoice Gateway. You can match to purchase orders when entering these invoices. For information on the differences between these windows, see the following for the difference in entering Invoices using Invoice Gateway Window and the Invoice Workbench

• Invoice Workbench: (Invoice Batches window, Invoices window, Distributions window, and the associated windows). Used to enter any invoice directly into the Payables system. Use this instead of the Invoice Gateway when entering complex invoices or invoices that require online validation and defaulting. Also used when entering an invoice that needs immediate action, such as payment.

• Invoice Gateway window: Used for quick, high–volume invoice entry for invoices that do not require extensive validation and defaults. After entry, you import these into the Payables system. Validation and defaulting occur during import.

Automatic Invoice Creation

You can set up your system to automatically create periodic invoices, for example, rent invoices. 

Imported Invoices

You can import invoices or invoice information to create invoices in Payables. For example, Credit Card invoices: Invoices for employee credit card expenses. The credit card company sends you these invoices as a flat file.

1.3 Entering Invoices and Distributions using Invoice Workbench

Invoices

Follow the procedure below to enter an invoice you get from a supplier if the invoice is basic (will not be matched to a purchase order or receipt).

Prerequisite

Enter the supplier and at least one pay site in the Suppliers window.

Navigation

InvoicesàEntryàInvoices

To enter a invoice:

1. In the Invoices window choose Standard or Mixed for the invoice Type.

2. Enter the Supplier or Supplier Number.

3. Enter the Supplier Site to which you will send payment of the invoice. Payables will print the address for this site on the payment.

4. Enter the Invoice Date or accept the Payables default (today’s date) by choosing [TAB].  Payables may use the invoice date you enter as the Terms Date and GL Date default for an invoice, depending on how your Payables Options and Defaults are set up.  If your GL Date Basis Payable Option is set to Invoice (Date), you must enter an invoice date that is in an open or future period.

5. Enter the Invoice Number from the invoice your supplier sent you or accept the Payables default (today’s date) by choosing [TAB]. Payables will not allow you to enter duplicate invoice numbers for the same supplier. Enter the full Invoice Amount including tax, freight and miscellaneous charges.

6. Enter the Description of your invoice. This will appear on your payment document and may appear in your general ledger.

7. Enter distributions automatically by entering a Distribution Set, or choose the Distributions button and enter the distributions manually.

8. Payables automatically schedule payment of the invoice using the Invoice Amount, Payment Terms, and Terms Date. Enter or review the defaults for these fields.

9. Save your work.

Distributions

The distributions you enter for an invoice allocate the total invoice amount to various expense or asset accounts. For example, you can distribute expenses from one office supply invoice to expense accounts for several departments. Payable uses distributions to create accounting entries for invoices.

You can enter distributions in the following ways:

• Entering manually in the distributions window.

• Using a Distribution Set.

• Matching an invoice to a purchase order or receipt.

• Creating through Allocation. Creating Freight and Miscellaneous Charges by Allocating to Distributions

• Creating Tax distributions through Automatic Tax Calculation.

• Creating Freight Distributions by using the Create Freight Distribution check box in the Invoices window.

To enter distributions manually in the Distributions window:

1. Select your invoice in the Invoices window and choose the Distributions button to navigate to the Distributions window.

2. Choose a distribution Type. Choose Item for goods or services you ordered. Choose Miscellaneous for other expenses on an invoice that are not freight or tax. Choose Freight or Tax for those types of charges. Enter the distribution Amount and the GL Account.

3. The distribution GL Date defaults from the invoice GL Date you entered. You can override the default and change the distribution GL Date to any date in an open or future period. Payable uses the GL Date as the accounting date for a distribution.

4. Enter any additional distributions in the same manner.

5. Save your work.

1.4 Entering Invoices and Distributions using Invoice Gateway

Invoice Gateway Entry

 

Entries are Transferred to Payables Open Interface Tables

               

AP_INVOICES_INTERFACE

                                                                                         AP_INVOICE_LINES_INTERFACE

Open Interface Import Program

Transferred to Invoice Base Tables

                                                           

AP_INVOICES_ALL

                                                                                AP_INVOICE_DISTRIBUTIONS_ALL

                                                                                AP_PAYMENT_SCHEDULES_ALL

Prerequisites

1. Define suppliers with at least one pay site.

2. If you don’t want to use Invoice Gateway as the source for all Invoice Gateway batches, define additional values for the import Source in the Oracle Payables Lookups window (optional).

3. Customize your Invoice Gateway folder forms to hide fields you don’t use. For example, if you don’t use Automatic Tax

4. Calculation, hide the Includes Tax check box to prevent users from entering values in these fields and causing rejection of the invoice record during import.

To enter a invoice:

1. Open the Invoice Gateway window. Enter a unique value for the Gateway Batch and for the Source, enter Invoice Gateway, or a source which has been defined in the Oracle Payables Lookups window. The Gateway Batch and Source values in the Invoice Gateway Identification window will default to all invoice records you enter.

2. Enter the invoice header information. The following header fields are required:

Supplier or Supplier Num

Site

Invoice Amount                          

Enter at least one invoice line. The following fields are required for each invoice line:

Line Type

Amount

3. Press down arrow, to add a new invoice and perform step 2

4. If you want to import your invoice records now, choose the Create Invoices button and see: Creating Invoices From Invoice Gateway Invoice Records (Invoice): Or, you can import the batch later.

5. Save your work.

Note:  To enter a Purchase Order matched invoice, you need to enter PO information in the header section of Invoice Gateway.

1.5 Matching Invoices

With Purchase Order Shipments and Distributions

1. Create an invoice with type either PO Default or Mixed.  If PO Default is selected, it is mandatory to enter the Purchase Order Number.  With the PO Number, Payables defaults Supplier, Supplier Number, Pay Site and Currency.

2. Select Purchase Order from the Match list, and choose the Match button.  The Find Purchase Order Window will be popped up as follows:

3. Choose the Purchase Order Number and press the Find button.  Another window Match to Purchase Orders will be shown as follows:

4.  Check Match for the shipment line to be matched.  When checked, need to enter any two of the fields:  Quantity Invoiced, Unit Price, and Match Amount. 

5. Check Allocate for entering tax, freight, or miscellaneous charges to the distributions

6. Choose Match button.

Note:  Create Quick Match type Invoice to match all the Purchase Order shipments.

With Receipts

Prerequisites

1. The Invoice Match option for the purchase order shipment you are matching to is set to Receipt. When you enter the invoice, if the Invoice Match option for the supplier site is set to receipt then the match button will default to Receipt.

2. A purchase order for the same supplier and currency as the invoice you are entering must be approved and open and it must have at least one receipt entered against it.

To match an invoice to a receipt:

1. Enter a Standard, PO Default, QuickMatch, or Mixed invoice in the Invoices window.

2. In the Invoices window select Receipt from the Match button list choose Match button. Payables open the FindReceipts for matching window.

3. In the Find Receipts for matching window, select Item in the Type field to indicate that you are matching a material invoice. Payables will create distribution types that match the type entered here.  Choose the Find button to navigate to the Match to Receipts window.

4. The Match to Receipts window displays the receipts that match your search criteria. The displayed receipts include receipts for purchase orders that have the Invoice Match option set to Purchase Order.

5. Create invoice distributions by matching to a receipt. In the Match to Receipts window, select each receipt line you want to match to by selecting the Match check box. Then for each receipt line enter two of the following: Quantity Invoiced, Unit Price, and Match Amount.

6. If you want to allocate tax, freight, or miscellaneous charges to the distributions that this match will create, then check the Allocate check box.

7. Complete the match and save your work by choosing the match button.

1.6 Credit and Debit Memos

Enter a credit or debit memo to record a credit for goods or services purchased. Credit/debit memos are netted with basic invoices at payment time.

• Credit Memo. Negative amount invoice created by a supplier and sent to you to notify you of a credit.

• Debit Memo. Negative amount invoice created by you and sent to a supplier to notify the supplier of a credit you are recording.  Usually sent with a note explaining the debit memo.

Entering Credit/Debit Memos

1. In the Invoices window enter either the Credit Memo or Debit Memo Invoice Type. Enter a negative invoice amount and all basic invoice information. Enter Immediate Payment Terms, if appropriate.

2. Enter distributions. You can enter them manually or enter them automatically in one of the following ways:

• Enter a skeleton Distribution Set.

• Match to the original invoice you entered.

• Match to a purchase order or receipt.

3. Choose Save

Matching Credit and Debit Memos to Invoices

You can match credit and debit memos to invoices only in the Invoice Workbench, not in the Invoice Gateway.

To match a credit /debit memo to an invoice or invoice distribution:

1. In the Invoices window, enter a Credit Memo or Debit Memo type invoice. Enter a negative invoice amount and all basic invoice information but do not manually enter the distributions.

2. In the Invoices window, select Invoice from the poplist for the Match button. Choose the Match button.

3. In the Find Invoices to match window, enter search criteria for the invoice. If you want to apply the credit/debit memo to a purchase order matched invoice, you can enter that purchase order number to see all invoices matched to that purchase order.

4. Choose the Find button. Payables navigate to the Match to Invoice window.  To see more information about an invoice, select it and choose the Invoice Overview button.

5. Create invoice distributions by matching to one or more invoices.  Select the invoice by selecting the left check box, and enter a Credit Amount.  To match in further detail, continue the match at the invoice distribution: Choose the Distribute button. Select each invoice distribution you want to match to and enter a Credit Amount.

6. Choose the Match button to create invoice distributions for the credit/debit memo based on the matches you made.  To review the new invoice distributions, choose the Distributions button from the Invoices window.

Matching Credit and Debit Memos to Purchase Orders and Receipts

Each purchase order shipment indicates whether you should match to either a purchase order or receipt. You can match only to the document type (purchase order or receipt) specified by the purchase order shipment.

To match a credit /debit memo to a purchase order shipment or receipt in the Invoice Workbench:

1. Enter a Credit Memo or Debit Memo type invoice. Enter a negative invoice amount and all basic invoice information but do not manually enter the distributions.

2. In the Invoices window, select either Purchase Order or Receipt from the Match button poplist. Choose the Match button.  Payables open the Find Purchase Orders for matching window or the Find Receipts for Matching window.

3. If this is a price correction, then check the price correction check box and enter a value for Invoice Number.  If you want to associate an invoice with the credit memo, then enter the invoice number as search criteria. This link allows you to approve the invoice as a”related invoice”.   Enter search criteria for the document you want to match to and choose the Find button. Payables navigate to either the Match to Receipts or Match to Purchase Orders window.

4. Create invoice distributions by matching to one or more purchase order shipments or receipt lines.

• To match to purchase order shipments, select the shipment and enter either a Quantity Invoiced or Match Amount. Payables automatically calculates the remaining field (Quantity Invoiced x Unit Price = Match Amount). You can optionally change the Unit Price, which defaults from the purchase order.

• To match to a receipt lines select the receipt line and enter either a Quantity Invoiced or Match Amount. Payables automatically calculates the remaining field (Quantity Invoiced x Unit Price = Match Amount). You can optionally change the Unit Price, which defaults from the purchase order.

Note: The Quantity Invoiced cannot reduce the Quantity Billed below zero.

5. If you want to match in further detail, choose the Distribution button and continue the match at the purchase order distribution level. If you are matching to a receipt, the Match to Purchase Order Distributions window displays items that were delivered.

6. If you want to automatically create allocated tax, freight, or miscellaneous distributions, enable the Allocate check box.

7. Choose the Match button to create invoice distributions for the credit/debit memo based on the matches you made.  To review the new invoice distributions, choose the Distributions button in the Invoices window.

2. Invoice Approvals and Holds

2.1 Approval

Before you can pay or create accounting entries for an invoice, including prepayments, you must submit approval for the invoice in one of three ways:

• Online by using the Invoice Actions window.

• Online by using the Approve button in the Invoice Batches window.

• Batch by submitting the Payables Approval program from the Submit Request window.

Approval validates the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exception invoices. If an invoice has a hold, you can release the hold by correcting the exception that caused Approval to apply the hold and then resubmitting Approval. Correct exceptions by updating the invoice or the purchase order, or change your Invoice Tolerances. Payables automatically release the hold when the exception is no longer an issue. You can manually release certain invoice holds even if you have not resolved the matching error condition. You can do this in the Invoice Holds window.

You can identify all invoices that Payables has not yet reviewed with Approval by submitting the Invoice Register for Unapproved Invoices Only. You can check the Approval status of an invoice online in the Invoice Overview window or the Invoices window.

Online Approval for Invoices

Prerequisites:

Enable the Allow Online Approval Payables option.

To submit online Approval for invoices:

1. In the Invoices window, find the invoice(s) for which you want to submit Approval. If you want to submit Approval for multiple invoices, select them in the Invoices window.

2. Choose Actions. Select Approve.  If you are approving a credit or debit memo, select Approve Related Invoices to submit online Approval for invoices associated with the credit or debit memo.

3. Choose OK.  Payables displays messages about the number of holds applied and released during this cycle of Approval.

Submitting Online Approval for Invoice Batches

Prerequisite

Enable the Allow Online Approval Payables option.

To submit online Approval for invoice batches:

1. In the Invoice Batches window, find the invoice batch(es) that contain invoices for which you want to submit Approval. If you would like to submit Approval for multiple batches, select them in the Invoice Batches window.

2. Choose Approve. Payables submit Approval to review each invoice contained in each batch you select.  In the Invoice Holds window, you can review any invoice holds and releases that Payables applies.

2.2 Holds

Holds that you apply manually or that Payables applies, prevent payment and, in some cases, creation of accounting entries for an invoice. You can remove holds that you apply, and you can manually release certain holds that Payables applies during Approval.

Payables provide some generic invoice holds for you to use, and you can define your own, based on your invoice approval needs. You can also prevent payment of supplier invoices by placing a hold on the supplier rather than on each individual invoice.

Applying Holds

There are three types of holds you can use to prevent payment of an invoice:

Invoice Hold: You can manually apply one or more Invoice Hold Reason Approvals (”holds”) to an invoice using the Invoice Holds window of the Invoice Workbench.

Scheduled Payment Hold: You can hold payment on part of an invoice by placing one or more of the scheduled payments on hold in the Scheduled Payments window of the Invoice Workbench.

Supplier Hold: In the Supplier Sites window, you can enable the Hold All Payments, Hold Unapproved Invoices, or Hold Unmatched Invoices options. You also have the option of specifying an Invoice Amount Limit for a supplier site.

Applying a Hold to an Invoice

Prerequisite

1. Define your hold codes in the Invoice Approvals window.

2. Enter the invoice.

To apply a hold to an invoice:

1. Find the invoice in the Invoices window.

2. Select the invoice and choose the Holds button to navigate to the Invoice Holds window. Apply a hold by selecting a Hold Name from the list of values. You can select from all Invoice Approvals defined with the type Invoice Hold Reason.  You can apply as many holds to an invoice as you require. Payables displays a full audit trail of all current and released invoice holds in this window.

3. Choose Save.

Applying a Hold to a Scheduled Payment

Prerequisite

Enter the invoice.

To apply a hold to a scheduled payment:

1. Find the invoice in the Invoices window.

2. Select the invoice and choose the Scheduled Payments button to navigate to the Scheduled Payments window. To hold a scheduled payment, check Hold. By checking the Hold check box, you will not be able to pay the scheduled payment until you remove the hold by checking the check box again. If you want to partially pay an invoice that has only one scheduled payment, you can choose Split to break the scheduled payment in two. This way you can place one of the lines on hold, while leaving the other free for payment. You can create as many scheduled payments as you require as long as the sum of the Gross Amounts for all equals the Invoice Amount.

3. Save your work.

Applying Supplier Site Holds

Prerequisite

Define your hold codes in the Invoice Approvals window.

To apply supplier site holds:

Prevent payment of multiple supplier invoices by applying a hold to the supplier site rather than on each individual invoice. There are several types of supplier related holds (also known as vendor holds) that you enable for a supplier site. Payables also provides these options at the Supplier level, but Payables only uses these values to provide defaults for new supplier sites that you enter. The options you enable at the Supplier Site control Payables processing:

Hold All Payments: This is the most restrictive supplier site hold. By checking Hold All Payments in the Control region of the Supplier Site window, you prevent the supplier site from being selected for payment during a payment batch or for a Quick payment. You cannot pay invoices for the supplier site until you uncheck the Hold All Payments option at the supplier site.

Invoice Amount Limit: If you enter an invoice for a supplier site that exceeds the invoice amount limit you specify, Payables applies an Amount hold to the invoice during Approval. You cannot pay the invoice until you release the hold. You can release the hold by adjusting the invoice amount or you can manually release the hold in the Invoice Holds window.

Hold Unmatched Invoices: By checking this for a site, if you do not match an invoice to a purchase order or purchase order receipt (and instead enter distributions manually or with a distribution set), Payables places a Matching Required hold on the invoice during Approval. You cannot pay the invoice until you release the hold. You can release this hold by matching the invoice to a purchase order or purchase order receipt or you can manually release the hold in the Invoice Holds window.

Hold Unapproved Invoices: By checking this option for a site, Payables automatically applies a Supplier hold to all new invoices entered for that site. Payables apply this hold during Approval.  You will still be able to pay invoices that have previously been entered and approved for the supplier site. You can manually release the hold in the Invoice Holds window. Uncheck this option when you no longer want to hold unapproved invoices for a supplier site.

Releasing Holds From an Invoice

Prerequisite

Define your release codes in the Invoice Approvals window.

To release holds from an invoice:

1. In the Invoices window find the invoice from which you want to release holds.

2. Choose the Holds button to navigate to the Invoice Holds window.  Release a defined with the type Invoice Release Reason. To release multiple holds at once, choose Release and select a Release Name. You can select from all Invoice approvals defined with the type Invoice Quick Release Reason. When you save your work, Payables automatically assigns the release name to all releasable holds. Choose OK.

3. Save your work.

To release holds from multiple invoices:

1. In the Invoices window, use the Find window to query the invoices for a particular supplier from which you want to release holds. It is not necessary to enter a particular Hold Name in the Holds region of the Find Invoices window. In the Invoices window, select each invoice for which you want to release holds (use the CTRL key and at the same time right click with your mouse on each invoice to select it).

2. Choose Actions to navigate to the Invoice Actions window. Select Release Holds. In the Hold Name field, either select the name of the one hold type you want to release, or accept the default of All to release all releasable holds for each selected invoice: Select a Release Name. You can select from all Invoice Approvals defined with the type Hold Quick Release Reason. Optionally override the release reason associated with the Release Name.

3. Choose OK. Payables automatically releases all releasable holds and assigns the release name to all releasable holds across the multiple invoices you selected.

4. Save your work.

Releasing Scheduled Payment Holds

Prerequisite

Define your release codes in the Invoice Approvals window.

To release scheduled payment holds:

1. In the Invoices window or the Invoice Holds window, choose the Scheduled Payments button to navigate to the Scheduled Payments window.

2. Uncheck the Hold check box to release the hold from a scheduled payment.

3. Save your work.