Account Payables -> Account Payables Flow:

Training  of Account Payables -> Account Payables Flow:
PO -> Receipt -> AP -? GL


Invoice ->; Payments->; Move Transactions from AP to GLIn AP there are 2 Thumb rules.

• Without supplier there is no invoice.
• Without invoice there is no payment.

How many types of Invoices and What are Invoice Types:
1. Standard: We will make all the payments based on the standard invoice. It will have the information of Invoice Number, Invoice Date, Invoice Amount, and Currency.
2. Credit Memo: We will create credit memo invoice whenever supplier is giving the discount and it will be adjusted in standard invoice. It is always negative amount.
3. Debit Memo: Sometimes Company will deduct some amount from the invoice amount. This will be adjusted in standard invoice. It is always negative amount.
4. With-Holding TAX: This type of invoice will be created to make the invoice tax to the Govt. on behalf of supplier.
5. Pre-Payment: If we want to make some payments to the supplier in advance then we create the Pre-Payment invoice.
6. PO Default: If we want to make the invoice as per the PO then we create PO default. We will give Po Number. System will pick up the complete PO information.
7. Mixed: Includes both positive and negative amount. We can match this invoice with PO’s and other invoices.
8. Expense Report: This will be applicable for the employees who are working in the Company where payables and internet expense and project account. Expense will be included.
9. Recurring invoice: We can enter invoice for periodic expense for which we may not receive. Invoice from supplier. To create a Recurring invoice first we will take template.
As per that we will create the invoice.Once the invoice is successfully completed, we can go for payments. It is of 3 types.

Manual Payment: Here we will be mentioning the Invoice Number, Bank Account, and Document Number, Payment Date and Currency.

Refund payment: This is used for Employee expenses and for adjusting the Supplier account,

Quick payment: In this payment, system will automatically generate checks. To print Checks there will be a concurrent program for each check format.Once the payment was done, we will move all the transactions to GL.

Wo is Suppliers:
Set up suppliers in the Suppliers window to record information about individuals and companies from whom you purchase goods and services. You can also enter employees whom you reimburse for expense reports. When you enter a supplier that does business from multiple locations, you store supplier information only once, and enter supplier sites for each location. You can designate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement card sites. For example, for a single supplier, you can buy from several different sites and send payments to several different sites. Most supplier information automatically defaults to all supplier sites to facilitate supplier site entry. However, you can override these defaults and have unique information for each site. The system uses information you enter for suppliers and supplier sites to enter default values when you later enter transactions for a supplier site. Most information you enter in the Suppliers window is used only to enter defaults in the Supplier Sites window. When the system enters that information in a later transaction, it only uses supplier site information as a default, even if the supplier site value is null and the supplier has a value. If you update information at the supplier level, existing supplier sites are not updated. When you enter a supplier, you can also record information for your own reference, such as names of contacts or the customer number your supplier has assigned to you.

What is Invoices:
Invoice Type (LOV): The type of invoice. Standard and Credit are the only invoice types you can enter in this window. If you do not enter a value for this field then a value will be assigned during import based on the amount of the invoice.

Standard: A trade invoice you receive from a supplier. The amount of a Standard invoice must be zero or greater.

Credit: Credit Memo. A negative amount invoice you receive from a supplier representing a credit for goods or services purchased. Note that in the Invoice Gateway you can match a credit memo to a purchase order to perform a price correction, but you cannot match a credit memo to an invoice. If you want to match to an invoice, then use the Invoice Workbench.

Debit Memo: Negative amount invoice created by you and sent to a supplier to notify the supplier of a credit you are recording. Usually send with a note explaining the debit memo. Purchase Order Matched Invoices: You can match Payables invoices to purchase orders to ensure that you pay only for the goods that you have ordered, or you can match to purchase order receipts to ensure that you pay only for goods that you have received. Purchase order matched invoices are invoices that you match to any of the following:
• Purchase order shipments
• Purchase order receipts
• Purchase order receipt lines
• Purchase order distributions

Foreign Currency Invoices: When you enter an invoice in a currency other than your functional currency, Payables uses an exchange rate to convert the invoice and invoice distributions into your functional currency for creating journal entries. You define your functional currency during setup for your set of books.
Mixed Invoices: 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. For example, you can enter an invoice for –$100 with Invoice Type Mixed. You can match to an invoice for $–200, and match to a purchase order for $100.

Prepayments:A prepayment is a type of invoice you enter to make an advance payment to a supplier or employee. For example, you need to pay a deposit on a lease, or pay an employee an advance for travel expenses. You can later apply the prepayment to one or more invoices or expense reports you receive from the supplier or employee to offset the amount paid to them. The supplier might send an invoice that references a prepayment. The supplier has reduced the invoice amount by the amount of the prepayment and associated tax. You can use the Prepayment on Invoice feature to enter the invoice.
You can enter two types of prepayments:
Temporary prepayments can be applied to invoices or expense reports you receive. For example, you use a Temporary prepayment to pay a hotel a catering deposit. When the hotel’s invoice arrives, apply the prepayment to the invoice to reduce the invoice amount you pay.
Permanent prepayments cannot be applied to invoices. For example you use a Permanent prepayment to pay a lease deposit for which you do not expect to be invoiced.

What are types of Matching?
2–way matching: The process of verifying that purchase order and invoice information matches within accepted tolerance levels. Payables use the following criteria to verify two–way matching: Invoice price <- Order price Quantity billed <- Quantity ordered

3–way matching: The process of verifying that purchase order, invoice, and receiving information matches within accepted tolerance levels. Payables use the following criteria to verify three–way matching: Invoice price <- Purchase Order price, Quantity billed <- Quantity ordered, Quantity billed <- Quantity received.

4–way matching: The process of verifying that purchase order, invoice, and receiving information matches within accepted tolerance levels. Payables use the following criteria to verify four–way matching:
Invoice price  => Order price

Quantity billed => Quantity ordered

Quantity billed => Quantity received

Quantity billed= > Quantity accepted


What is FOB (Free On Board): The point or location where the ownership title of goods is transferred from the seller to the buyer. This indicates that delivery of a shipment will be made on board or into a carrier by the shipper without charge, and is usually followed by a shipping point or destination (e.g. ’FOB Our warehouse in New York’). The FOB code is currently available only for reference purposes. Revenue and cost recognition is not currently determined by the value entered in this field. (Receivables Lookup)

What is Purge : An Oracle Receivables Process, where you identify a group of records for Receivables to delete from the database. Receivables purge each record and its related records. Receivables maintain summary data for each record it purges.

Oracle Purchasing Tables Table

Oracle Purchasing Tables
Table Name : PO_REQUISITION_HEADERS_ALL
Columns:
REQUISITION_HEADER_ID
PREPARER_ID
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Segment1: Is the system–assigned number you use to identify in forms and reports?
Stores information about requisition headers. You need one row for each requisition header you create. Each row contains the requisition number, preparer, status, and description.SEGMENT1 is the number you use to identify the requisition in forms and reports (unique).

Table Name : PO_REQUISITION_LINES_ALL
Columns:
REQUISITION_LINE_ID
REQUISITION_HEADER_ID
LINE_NUM
LINE_TYPE_ID
CATEGORY_ID
ITEM_DESCRIPTION
UNIT_MEAS_LOOKUP_CODE
UNIT_PRICE, QUANTITY
DELIVER_TO_LOCATION_ID
TO_PERSON_ID
SOURCE_TYPE_CODE
Stores information about requisition-lines. Line number, item number, item category, item description, need–by date, deliver–to location, item quantities, units, prices, requestor, notes, and suggested supplier information for the requisition line. LINE_LOCATION_ID - Purchase order shipment line on which you placed the requisition. It is null if you have not placed the requisition line on a purchase order. BLANKET_PO_HEADER_ID and BLANKET_PO_LINE_NUM store the suggested blanket purchase agreement or CATALOG quotation line information for the requisition line. PARENT_REQ_LINE_ID contains the REQUISITION_LINE_ID from the original requisition line if you exploded or multi-sourced this requisition line.

Table Name : PO_HEADERS_ALL
Columns:
PO_HEADER_ID
AGENT_ID
TYPE_LOOKUP_CODE
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Information for your purchasing documents. There are six types of documents that use PO_HEADERS_ALL. RFQs, Quotations, Standard purchase orders, planned purchase orders, Blanket purchase orders, Contracts can uniquely identify a row in PO_HEADERS_ALL using SEGMENT1 and TYPE_LOOKUP_CODE or using PO_HEADER_ID.BLANKET_TOTAL_AMOUNT for blanket purchase orders or contract purchase orders. If we use copy document Oracle Purchasing stores the foreign key to your original RFQ in FROM_HEADER_ID.

Table Name : PO_LINES_ALL
Columns:
PO_LINE_ID
PO_HEADER_ID
LINE_TYPE_ID
LINE_NUM
Stores current information about each purchase order line. CONTRACT_NUM reference a contract purchase order from a standard purchase order line.

Table Name : PO_VENDORS
Columns:
VENDOR_ID
VENDOR_NAME
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Information about your suppliers. Purchasing, Receiving, Payment, Accounting, Tax, Classification, and General Information.

Table Name : PO_VENDOR_SITES_ALL
Columns:
VENDOR_SITE_ID
VENDOR_ID
VENDOR_SITE_CODE
Information about your supplier sites. A row for each supplier site you define. Each row includes the site address, supplier reference, purchasing, payment, bank, and general information. Oracle Purchasing uses this information to store supplier address information.

Table Name : PO_DISTRIBUTIONS_ALL
Columns:
PO_DISTRIBUTION_ID
PO_HEADER_ID
PO_LINE_ID
LINE_LOCATION_ID
SET_OF_BOOKS_ID
CODE_COMBINATION_ID
QUANTITY_ORDERED
DISTRIBUTION_NUM
Contains accounting distribution information for a purchase order shipment line. You need one row for each distribution line you attach to a purchase order shipment.
There are 4 - types of documents using distributions in Oracle Purchasing:
· Standard Purchase Orders
· Planned Purchase Orders
· Planned Purchase Order Releases
· Blanket Purchase Order Releases

Includes the Destination Type, Requestor ID, Quantity Ordered and Deliver–To Location for the distribution.

Table Name : PO_RELEASES_ALL
Columns:
PO_RELEASE_ID
PO_HEADER_ID
RELEASE_NUM
AGENT_ID
RELEASE_DATE
Contains information about blanket and planned purchase order releases. You need one row for each release you issue for a blanket or planned purchase order. Each row includes the buyer, date, release status, and release number. Each release must have at least one purchase order shipment.

Table Name : PO_VENDOR_CONTACTS
Columns:
VENDOR_CONTACT_ID
VENDOR_SITE_ID
Stores information about contacts for a supplier-site. You need one row for each supplier contact you define.
Each row includes the contact name and site.

Table Name : PO_ACTION_HISTORY
Columns:
OBJECT_ID
OBJECT_TYPE_CODE
OBJECT_SUB_TYPE_CODE
SEQUENCE_NUM
Information about the approval and control history of your purchasing documents. There is one record in this table for each approval or control action an employee takes on a purchase order, purchase agreement, release, or requisition.
· OBJECT_ID - Document header Identifier
· OBJECT_TYPE_CODE - Document Type
· OBJECT_SUB_TYPE_CODE - Document subtype
· SEQUENCE_NUM - Sequence of the approval or control action for a document.

Table Name : PO_REQ_DISTRIBUTIONS_ALL
Columns:
DISTRIBUTION_ID
REQUISITION_LINE_ID
SET_OF_BOOKS_ID
CODE_COMBINATION_ID
REQ_LINE_QUANTITY
DISTRIBUTION_NUM
Stores information about the accounting distributions associated with each requisition line.

Table Name : PO_LINE_LOCATIONS_ALL
Columns:
LINE_LOCATION_ID
LAST_UPDATE_DATE
LAST_UPDATED_BY
PO_HEADER_ID
PO_LINE_ID
SHIPMENT_TYPE
Contains information about purchase order shipment schedules and blanket agreement price breaks. You need one row for each schedule or price break you attach to a document line. There are 7- Types of documents that use shipment schedules:
· RFQs
· Quotations
· Standard Purchase Orders
· Planned Purchase Orders
· Planned Purchase Order Releases
· Blanket Purchase Orders
· Blanket Purchase Order Releases
Each row includes the location, quantity, and dates for each shipment schedule. Oracle Purchasing uses this information to record delivery schedule information for purchase orders, and price break information for blanket purchase orders, quotations and RFQs.

Functional-- Purchase Order Flow

Functional Training  of Purchase Order Flow
What is flow of PO:

Step 1:We will be raising the Requisitions for the items which are needed.
Requisition is 2 types • Internal Requisition • Purchase
Internal Requisition is used when we are getting the items from one organization to another organization of the same business group.
Purchase Requisition is raised when we are getting the items from outside the business group.

Step 2:Once the Requisition has been approved, we will be sending (Request For Quotes) RFQ’s to different Suppliers. It contains the information regarding the type of RFQ, terms and conditions, shipments, currency.
RFQ is of 3 types
• Bid RFQ • Catalog • Standard
BID: Used for a fixed specific quantity, Location and date. This will be used for large or expensive price of equipments. That you have never order before. There won’t be price any breaks for a BID Quotation.
CATALOG: This will be used for high volume items for which your supplier sends information regularly. The CATALOG RFQ includes price breaks at different quantity levels.
STANDARD: It is used for items we need only once or not very often for a specific fixed quantity, location and date. It includes price breaks at different quantity levels.

Step 3:We will be receiving the quotations from different suppliers. Quotation is of 3 Types.
• Bid
• Catalog
• Standard

Step 4:Based on the quotations, we will be deciding the supplier and purchasing order is given to that supplier.
Purchasing is of 4 types
• Standard
• Planned
• Blanket
• Contract

Step 5:Once we receive the items from the Supplier we will issue the receipts to the Supplier. This is done in 3 ways.
• Two-Way: In 2-way we will compare PO and Invoice.• Three-Way: In 3-way we will compare the PO, Receipt and Invoice.• Four-Way: In 4-way we will compare PO, Receipt, Inspection and Invoice.

2-Way Matching verifies that Purchase order and invoice information match within your tolerances as follows:Quantity Billed <-Quantity Ordered Invoice Price <- Purchase Order Price (<- Sign is used because of tolerances)


3-Way Matching verifies that the receipt and invoice information match with the quantity tolerances defined:Quantity billed Quantity received

4-Way Matching verifies that acceptance documents and invoice information match within the quantity tolerances defined:Quantity billed <- Quantity accepted. (Acceptance is done at the time of Inspecting goods).Whether a PO shipment has 2-way, 3-way or 4-way matching can be setup in the Shipment Details zone of the Enter PO form (character).

RECEIPT REQUIRED INSPECTION REQUIRED MATCHING
Yes Yes 4-Way
Yes No 3-Way
No No 2-Way
In ‘More’ alternative region of Shipments block, you define the Invoice Matching option, where you can choose 2-way, 3-way or 4-way match.

Step 6:Because of these Transactions Inventory and Payables get affected.