Oracle Accounnts Payable r12 Summary

Oracle Accounts Payable r12 Summary

Compiled By:
Prasanna Kumar Reka
Oracle Applications Consultant
rekaapps@yahoo.com

Topics:
1. Multi-Org Access Control
2. New Supplier User Interface & Inclusion of Suppliers into Trading Community Architecture(TCA)
3. Bank Definition Enhancements
4. Legal Entity Ownership
5. Invoice Lines and Approvals
6. Disbursement Requests
7. iSupplier Enhancements
8. Payment Process Enhancements & Oracle Payments
9. Enhancements to support Contract Financing
10. Other Topics

Multi-org Access Control (MOAC):

• Using single application responsibility users can process payables transactions for unlimited operating units (OUs).
• Data can be secured with data access privileges to users, using security profiles that are defined for a list of Operating Units (OUs)

New Supplier User Interface & Inclusion of Suppliers into Trading Community Architecture (TCA)

• Suppliers are included in Trading Community Architecture (TCA)
• New user interface for supplier entry and maintenance
• Product specific attributes defined for suppliers can be controlled using function security (Ex: Purchasing attributes)
• New locations and relationships for new Operating Units (OUs) is streamlined
• Purchase Category assignment to designate the type of goods and services that supplier will supply
• Distinction maintained between Supplier company details and Terms & Conditions for a trading relationship
• More flexibility in definition and maintenance of Supplier Bank account information from supplier entry and maintenance user interface.

Bank Definition Enhancements

• Bank Accounts are centrally defined, managed and secured and includes the legal ownership and operating unit access for each bank account

Legal Entity Ownership

• Legal Entity is the one which bears Tax Identification number and legally obligated to report, so ability to track data by legal entity as Out of Box functionality is provided.
• Legal entity can have multiple operating units, data is operating unit specific. Legal entity can be used as selection criteria in pay runs which process invoices from multiple operating units in a single pay run.

Invoice Lines and Approvals

• In release 11i for AP Invoice we can enter Header and distributions, but release 12 concept of Invoice lines is introduced which enables better model the paper or electronic business document. Each Invoice line will have its own distributions so an invoice can have (Header, Line & Distribution)
• New Invoice lines supports the representation of the goods or services as well as tax, freight and other charges as lines with distributions tied to each lines.
• This enhancement also enables the ability for line level approval using AME and matching between an invoice line and a purchase order shipment pay item or receipt.
• Approvers of invoice submitted without a Purchase Order can enter accounting details as they approve.

Disbursement Requests

• “Disbursement Requests” are request to make a payment to a company or individual that is not a supplier.
• Disbursement requests carry accounting entries and support funds checking for budgetary control
• Can leverage AP Approval workflow functionality
• Currently Oracle Loans takes advantage of this feature for loans disbursement to borrowers and Oracle Receivables for Customer Refunds.
• Enhancements for supplier collaboration using iSupplier

iSupplier Enhancements

• Non-PO invoices entered via iSupplier portal
• INVOICE REQUESTS: Invoices entered by supplier with or without PO are represented as Invoice Requests.
• Invoice requests in payables are not accounted or paid until the invoice can be verified and approved.

Payment Process Enhancements & Oracle Payments

• New User Interface, robust and easy to use. (Ex: Selected Invoice view page)
• Toolset for Payment manager – Single pay run selecting multiple Currencies, Paygroups & operating Units.
• Payruns scheduling and payment dashboard empowers your payment manager with the ability to monitor all current pay run processing and payment process that require attention.
• Flexible payment processing engine, oracle payables in partnership with oracle payments offers the latest generation of electronic payment transmission technologies, formats and security meeting most industry standards ‘Out of Box”.

Enhancements to support Contract Financing

• Enhanced invoice processing for contract financing retainage and progress terms.
• Complex payment terms and conditions for fixed price contracts
• Options to schedule points of progression for invoicing, request an advance or progressive financing support, and record negotiated amounts to retain until completion of the purchased items, service or project
• Terms and conditions are supported during the lifetime of the contract.

Other Topics
AP/AR Netting: When trading partner is both a customer and a supplier you may choose to offset open receivables against open payable items. Some enhancements were made from 11i.

Note: Oracle Payments is a new product and it is not part of this post.