Oracle applications 11i Student Guides on HRMS

Download free Student Guides for Oracle HRMS. These three guides will cover almost all HRMS.

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oracle general ledger(GL) Practices

Download GL Practices from the following link. These practice include Creating Set of Books, Journal entries etc. on Vision Demo Database. Good for learners and aspiring Functional consultants.

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Oracle ADI and 11i Tip Sheets

Download Oracle ADI and 11i Tip Sheets. These are very good documents which gives ADI and 11i Tips in a single page.

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Video Tutorials on Oracle General Ledger

Video Tutorial on Oracle General Ledger. The archived file has four tutorials(Setup, Reporting and Analysis, Currencies, Transactions and Advanced Features).

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video tutorials on order 2 cash(O2C)cycle

Video Tutorials on Order-To-Cash and Order Management. Download from the Following link.

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basic concepts in oracle 11i financials --AP

The Payables module in Oracle Applications allows you to pay your suppliers for merchandise and services and enables you to manage your procurement cycle. This module consists of two integrated workbenches, Invoice and Payment.

This ReferencePoint describes Accounts Payable (AP) and explains how to manage payments to vendors and suppliers.

The Payables Workflow

Oracle Payables is integrated with Oracle Purchase and Oracle Cash Management. When you purchase goods or services from a supplier, an encumbrance is created. As soon as you receive the goods or services, the encumbrance becomes a liability that remains in your books until you pay for goods or services.

Figure shows the integration of Oracle Payables, Oracle Purchase, and Oracle Cash Management:

Integration of Payables, Purchase, and Cash Management

Oracle Purchase, similar to all other feeder systems, is also integrated with Oracle GL. You can transfer all accounting transactions generated and created in Oracle Payables to Oracle GL through GL_INTERFACE_TABLE.

To integrate Payables with GL:

1. Run Payables Transfer from Oracle Payables to the General Ledger process. Using this process, you can transfer invoice and payment accounting to the GL_INTERFACE table.

2. Run the Journal Import program from Oracle GL to transfer the invoice and payment accounting from the GL_INTERFACE table to GL. This creates unposted journal entries in GL, which can be reviewed and finally posted. The posting process updates account balances.

How to Set Invoice Workbench

Invoice Workbench enables you to enter, adjust, modify, and review invoices and invoice batches that your customers have raised on you.

You can integrate the Invoice and Payment workbenches through the Invoice Overview and Payment Overview windows. You can use either of these workbenches to review the information in the other workbench.

The Setup options in Oracle allow you to manage the procurement cycle and save money for your organization. You can define the Payables system to:

• Pay suppliers on time

• Get maximum discounts on payments

• Prevent duplicate billing and invoicing

• Perform multiple matching of Invoice and Purchase Orders

• Avoid overdrafts on bank accounts

• Review information online to check the status of payments

There are various options that you can set to work with the invoice feature in Oracle Payables. These include the options for suppliers, invoices, and distribution sets.

Supplier

The Suppliers window enables you to enter information about individuals and organizations that supply goods and services. You can enter employees as suppliers to enable the system to make payments against expenses.

If any of the suppliers operate from multiple locations, you need to enter the supplier information only one time. You can assign multiple sites to each of the supplier's locations. A site is a location from where the supplier runs a specific business. Sites can be designated as pay sites, purchasing sites, and REQ only sites. On the basis of supplier definition, you can purchase goods or services and send payments to a site.

How to Define a Supplier

To define a supplier:

1. Log on to Oracle Applications. Select Switch Responsibility -> Payables, from the main menu. Select Suppliers –> Entry. The Suppliers form opens, as shown -
   The Suppliers Form

2. Enter a name, tax payer ID, and a number signifying your customer ID. Select the Classification tab. In the Type field, select a type from the LOV for the supplier.

3. Open the Accounting tab. Enter a distribution set to automatically enter distributions for an invoice when it does not match a purchase order. For example, you can create a distribution set for stationery supplier. This allocates stationery expense on an invoice to a specific number of end users.

4. Open the Control tab. In the Invoice Match option, select either Purchase Order or Receipt.

If you enable any of the HOLD options for a specific supplier, Payables will withhold payments to that supplier.

5. Click the Payment tab. In the Terms field, select a Payment Term agreed upon by you and your supplier. Select Pay Group to assign to the supplier, as shown earlier in screenshot-2

6. Enter a priority number between 1 and 99 in the Payment Priority window with one having the highest and 99 the lowest priority. Select Terms Date Basis to define the date from which Payables calculates a scheduled payment from a supplier.

7. Select Pay to determine the pay date for a supplier's invoice. Click the Bank Accounts tab to define the supplier's bank accounts.

8. Select Purchasing. Define the organization's Ship-To and Bill-To locations among other options, where the supplier sends the goods to the Ship-To location and the invoices for goods or services to the Bill-To location.

9. Select the Receiving tab. The options to open the Receiving tab are:

   • Enforce Ship-To Location: Determines whether or not the receiving location is the same as the Ship-To location.

   • Receipt Routing: Defines the flow of goods after the supplier has delivered the same at the Ship-To location.

   • Match Approval Level: Allows you to online match receipts and purchase orders to ensure that you pay only for the ordered goods and services.

   • QuantityReceived Tolerance: Defines the maximum range of over-receipt in addition to the quantity ordered, based on the percentage you enter.

   • Tolerance: Defines how the purchase department handles the receipts that exceed the QuantityReceived Tolerance based on the selected value.

   • Days Early and Days Late Receipt Allowed: Defines how many days before and after the date of receipts of goods, you are ready to accept the delivery.

   • Receipt Date Exception: Defines how the purchase department handles receipts that exceed the Days Early and Days Late Receipt Allowed.

10. Save and click the Sites button. The Supplier Sites form opens, as -

The Supplier Sites Form

11. Type a site name, EC-NYC in the Site Name text box. Type the address in the Address option. Select the General tab and select the Pay and Purchasing check boxes in the Site Uses option. The concerned supplier uses this site for receiving purchase orders as well as payments. Select the Contacts tab and enter a contact name and information for the supplier.

12. Select the Accounting tab. Enter the default GL accounts that will be updated when you deal with the supplier. Click the Bank Accounts tab and enter the supplier's bank account data. Save and close the Supplier Sites form.

Payment Terms

You need to define Payment Terms to assign them to an invoice. This allows you to automatically create scheduled payments when you submit an invoice for approval. A Payment Term consists of one or more Payment Term lines where each line creates a scheduled payment. Each scheduled payment has an associated due date or a discount date based on:

• A specific day of a month, such as the tenth day of the month.

• A specific date, such as January 10, 2003.

• The number of days added to the terms date, such as 10 days after the terms date.

• A special calendar that mentions a due date for the period that includes the invoice terms date. Due dates can be based on a special calendar but not discount dates.

To define a Payment Term:

1. Select Setup –> Invoice -> Payment Terms from the main menu. The Payment Terms form opens, as shown -

The Payment Terms Form

2. Enter a name for the Payment Term.

3. Enter a Cut-off Day if you are entering Day of Month terms. The Cut-off Day defines the day of the month. After the Cut-off Day, due and discount dates will be in a future month depending upon the value entered in the Months Ahead field. For example, the values of Cut-off Day are 10, Months Ahead is 0, and Day of Month is 15. If you enter an invoice with a terms date of March 12, Payables will set the due date to April 15.

Note

You can also use Fixed Date or Days terms instead of Day of Month terms, but you cannot select two different terms.

4. Enter 100% or less if payment is made in installments in the % Due field. Click the First Discount tab.

5. Enter the discount percentage in the % Discount field. Press Tab to go to the Days field. Enter a value 10 in the Days field. This Payment Term will provide a 2% discount if payment is made within 10 days of the Term Date. Define the second and third discounts.

6. Save and close the Payment Terms form.

Distribution Sets

A distribution set creates distributions for an invoice where the Purchase Order does not match with the invoice. You need to assign distribution sets to a supplier site where the Payables module uses them for every invoice assigned to the supplier site. If a distribution set has not been assigned to a supplier site, select one when you enter the invoice.

The two types of distribution sets are:

• Full distribution set: Contains the percentages in which the distribution of the Invoice amount is created.

• Skeleton: Contains no predefined percentages. You need to enter the amount when you enter the invoice.

To define a distribution set:

1. Select Setup –> Invoice –> Distribution Sets. The Distribution Sets form opens, as shown -
   The Distribution Sets Form

2. Enter a name for the set.

3. Click the Num field. Type 1 for the first distribution line.

4. Enter the percentage of the invoice amount you want to distribute among the distribution line in the % field.

5. Type the account code to which this distribution line belongs in the Account field. For example, you can enter depart 001.

Note

You can create as many distribution lines as you need, but ensure that the total of the values of the % field equals 100.

6. Save and close the Distribution Sets form.

Invoice Tolerances

The Invoice Tolerances window allows the end user to define acceptable tolerances, allow variances between invoices, purchase orders, and obtains receipts and tax information. You can define tolerances in percent or absolute terms.

Tolerances in Payables store a matching or a tax hold in an invoice, if the value exceeds the tolerance levels defined in the Invoice Tolerances window. When you submit an invoice for approval, Oracle Payables checks whether the invoice matches the purchase order or the receipt within the purchase order tolerance limits you have set.

When you submit the invoice with a tax amount for approval, Payables checks whether the invoice tax amount equals the calculated tax amount within the tolerance limits you have defined.

If you define a percentage-based tolerance, Payables calculates the tolerance, based on the invoice amount including the tax. For example, the invoice amount is USD 100, the tax rate is 10%, and the tax tolerance is 5%. In this case, an Invoice will not be raised on a Tax variance hold if the tax distribution amount entered ranges from USD 9.5 to USD 10.5.

To define Invoice Tolerances, select Setup –> Invoice –> Tolerances from the main menu. The Invoice Tolerances form opens, as shown-

The Invoice Tolerances Form

Invoice Approvals

The Invoice Approvals window defines the rules that manually hold or release invoices. You can create hold rules, such as APPROVAL REQUIRED, and release rules, such as APPROVED. You can define as many approval rules as you need.

To define Invoice Approval code:

1. Select Setup –> Invoices –> Approvals, from the main menu. The Invoice Approvals form opens, as shown -

The Invoice Approvals Form

2. Enter a name and description for the code.

3. Select a predefined type in the Type field.

4. Select the Accounting Allowed option if you are defining a hold code.

5. Enable the Manual Release Allowed option manually if you are defining the release code. It releases the hold on an invoice.

6. Save and close the Invoice Approvals form.

Invoices

Oracle Payables enables the end user to enter and work with the following types of invoices:

• Standard: Indicates the basic form of invoice that represents a payment due to a supplier for goods or services purchased.

• Credit Memo: Indicates a negative amount invoice that is received from the supplier for goods and services purchased. You can use it as a price correction tool.

• Debit Memo: Represents a credit amount, which the supplier owes you. This document is created and sent to the supplier.

• Purchase Order Default: Enables you to match the invoice against the purchase order. While you enter an invoice, the purchase order number entered automatically copies supplier related information from the purchase order to the invoice.

• Mixed: Allows the ordered quantity against purchase orders and other invoices, both in excess and in deficit.

• Quick Match: Enables you to match an invoice against all shipment or receipt lines in a purchase order.

• Prepayment: Enables you to enter an advance payment for expenses to a supplier or an employee. For example, you may need to make a deposit when placing an order or make advance payments for travel expenses.

• Withholding Tax: Enables you to remit taxes invoice withheld from the tax authority.

• Expense Report: Enables you to enter amounts due to an employee for business-related expenses.

• Interest: Enables you to calculate the interest for overdue invoices and create interest invoices for relevant suppliers. You need to enable the Allow Interest Invoice option in the Payables options window.

• Figure shows the invoicing process:

Overview of the Invoicing Process

Invoice Gateway vs. Invoice Workbench

You can enter invoice information using either the Invoice Workbench or the Invoice Gateway.

The Invoice Gateway enables you to enter large volumes of standard and credit memo invoices that are not complex and do not require extensive online validation or change in values during data entry.

The Invoice Gateway enables Purchase Order matching and applying prepayments to invoices being entered.

The Invoice Workbench enables you to enter complex invoices that require extensive online validation and change of values that appear by default during data entry. You can also use the Invoice Workbench to perform an action on the invoice immediately after entering it. For example, you may need to apply a payment immediately upon entering the invoice information and you can do it from the same window.

How to Enter an Invoice

To create a Purchase Invoice batch and to enter a Purchase invoice:

1. Log on to the system. Select Switch Responsibility -> Payables, from the main menu.

2. Select Invoices –> Entry –> Invoice Batches, from the main menu. The Invoice Batches form opens, as shown -

The Invoice Batches Form

3. Enter a batch name and a Payment Term. Click the Invoices button. The Invoices form opens, as shown -

The Invoices Form

4. Select Type as Standard. Select a Supplier. When you select a Supplier, the Supplier Number and Site is automatically populated.

5. Enter an invoice date in the Invoice Date column. Enter the invoice number as 100.

6. Select the Invoice Currency as USD. Enter the invoice amount as 10, 000.

7. Type GL Date = System Date and Terms Date = System Date.

8. Change the Payment Term if needed. The default value defined will be similar to the Invoice Batches form.

9. Select a payment method such as Check. Select Pay Group, if needed.

10. Save the date in the Invoices form. Do not close the Invoices window.

How to Enter Invoice Distributions

You may need to distribute the entered invoice to various departments in your organization. For example, you have an expense item, Furniture. You may need to allocate its cost to three departments.

Use the invoice created in the earlier exercise. To enter invoice distributions:

1. Click the Invoice line and then click the Distributions button. The Distributions form opens, as shown -
   The Distributions Form

2. Type one in the Number field. Select Item in the Type field.

3. In the Amount field, type 3500.

4. Type a GL Date or accept the system date.

5. Type the account combination for the first department for which the cost is being allocated in the Account field.

6. Type 2 in the Num field. In the Type field, select Item. In the Amount field, enter 4000. Type a GL Date and the account combination for the second department, as shown in the Screenshot above.

7. Repeat the steps for the third number. Ensure that the Invoice Total matches the Distribution Total.

8. Save and close the Distributions form.

How to Enter Distributions Using a Distribution Set

Prerequisite: Create a distribution set.

To enter an invoice distribution using a distribution set:

1. Open the Invoice Batches window.

2. Select View -> Find, from the top menu. The Find Invoice Batches window opens. Enter the name of your invoice batch. Click the Find button. The Invoice Batches form opens with the invoice batch.

3. Click the Invoice button. The Invoices form opens.

4. Enter Type as Standard.

5. Enter your supplier and press Tab to go to the Invoice Date field. Type an invoice date.

6. Enter the invoice number and invoice amount.

7. Click the Distribution Set field. Select the distribution set that you have created earlier and save.

8. Click the Distribution button. The Distributions window opens where you can see that the distribution for your invoice is complete.

9. Save and close the Invoice Batches form.

How to Create a Scheduled Payment

After entering an Invoice, the Payables module uses the Payment Terms and the Term date specified to automatically schedule payments. The Payment Terms parameters enable you to calculate the due date for the invoice, the discount date, and the discount amount for each scheduled payment.

To create a scheduled payment for an invoice:

1. Open the Invoice Batches window. Select Invoices –> Entry –> Invoice Batches. The Invoice Batches window opens.

2. Select View –> Find to query the Invoice Batch from the top menu.

3. Click the Invoices button in the Invoice Batches window. The Invoice form opens.

4. Enter a Standard invoice using a distribution set. Save date in the Invoice form.

5. Click the Scheduled Payments button. The Scheduled Payments form opens, as -
   The Scheduled Payments Form

6. Enter 70% of your invoice amount in the Gross Amount field.

7. Click the Split Schedule button. A scheduled payment new line is automatically created in the Scheduled Payments form.

8. Ensure that the invoice amount matches the gross amount total.

9. Save the date in the Scheduled Payments form.

How to Create Freight Distribution

To create freight distribution in Oracle Payables:

• Enable the Automatically Create Freight Distribution option when you parameterize the Payable options. You can enable this option in the Invoice tab embedded in the Payable Options form.

• Allocate freight across invoice distributions.

• Manually enter freight distributions.

To create freight distribution:

1. Open the Invoice Batches window and select Query to find the invoice batch option.

2. Select your batch. Click the Invoices button.

Note

If you cannot view the Freight Amount field and the Create Freight Distribution check box, select Folder –> Show Field from the top menu.

3. Create a Standard invoice in the Invoices form.

4. Enter the invoice number and invoice amount in the Invoices form. The Invoice Amount here includes Freight.

5. Enter a value in the Freight Amount field.

6. Select the Create Freight Distribution check box. The Freight window opens. Type your Freight distribution account here. Click OK.

Note

If you have already entered a Freight distribution account when configuring the Payable option then that account code will appear by default.

7. Save the Invoices form.

8. Click the Distributions button to verify the freight distribution. The Freight line appears, by default.

9. Add another distribution line. Save and close the Invoices form.

How to Allocate Freight

To enter freight distribution and allocate it across two departments or divisions:

1. Open the Invoice Batches window and select Query to find the invoice batch.

2. Click the Invoices button. The Invoices form opens. Enter an invoice.

3. Set Type as Standard and select a supplier name.

4. Enter an Invoice number and the Invoice amount. The invoice amount includes the freight amount.

5. Click the Distributions button. The Distributions form opens.

6. Enter a two-line distribution for your invoice.

Note

The amount distributed here will be net freight amount. The distribution is being made across two different departments. While entering the account code, ensure that different values are selected for the Department segment.

7. Save the date. Click the Allocate button. The Charge Allocations form opens, as shown -

The Charge Allocations Form

8. Select Freight in the Type field and select the Prorate check box.

9. Enter the Freight amount to be allocated to each department in the Amount field. Click the Select/Unselect All button.

10. Click the OK button. You will automatically return to the Distributions window. The Freight allocation is prorated on the basis of the amounts in the two item distribution lines. Save and close the Charge Allocations form.

How to Match Invoices with Purchase Orders

Best business practices include payment for the goods that have been ordered. For this, you need to match your invoice against the payments made and the original purchase order.

Oracle Payables allows you to either match a single invoice against multiple purchase orders or distributions or match multiple invoices with a single purchase order or distribution.

Using Oracle Payables, you can create Holds on invoices where you are being billed in excess of the amount and quantity tolerances that you define. You will not be able to make a payment on the invoices unless the hold is removed.

There are three Match Approval levels:

• 2-Way:

  • The quantity billed is matched against the quantity ordered.

  • The invoice unit price is matched against the purchase order line unit price.

• 3-Way:

  • The quantity billed is matched against the quantity ordered.

  • The invoice unit price is matched against the purchase order line unit price.

  • The quantity billed is matched against the quantity received.

• 4-Way:

  • The quantity billed is matched against the quantity ordered.

  • The invoice unit price is matched against the purchase order line unit price.

  • The quantity billed is matched against the quantity received.

  • The quantity billed is matched against the quantity accepted.

You need to create an Invoice and match it against the original Purchase Order.

Prerequisite: You need to create a Purchase Order using the Oracle Purchasing module. Remember to note the Purchase Order Number.

To understand the three Match Approval Levels:

1. Select Switch Responsibility -> Oracle Payables, from the main menu.

2. Select Invoices –> Entry –> Invoice Batches.

3. Query your invoice batch. Select View –> Find, from the top menu.

4. Click the Invoices button. In the Invoices window, enter an invoice.

5. Set Type as PO Default. The PO Number window will appear. Enter your purchase order number here. Click OK.

6. Enter an invoice number and an invoice amount.

7. Click the Match button. The Find Purchase Orders for Matching form opens, as -

The Find Purchase Orders for Matching Form

8. Accept the default PO number. Click the Find button. The Match to Purchase Orders form opens, as shown-

The Match to Purchase Orders Form

9. Select the Match check box and click the Match button. Save and close the Match to Purchase Orders form.

Oracle Apps 11i : Creating Journals through Oracle GL

This tutorial will describe the procedure of creating journals through oracle GL - Create a new batch with multiple Journal entries, Enter Journals to a Batch and to Enter Journal Lines.

Create a new batch with multiple Journal entries

Create a Journal batch

The following are the steps for creation of a journal batch:

1. Navigate to the enter journals window.

2. Choose New Batch.

3. Enter an optional Batch name to identify the batch on general ledger and journal entry reports. You cannot have duplicate batch names in the same accounting period. If you do not enter a batch name, General Ledger will create a default name from the source, combined with a unique batch ID and the system date.

4. Enter the accounting Period for which you want to post the entries in your journal batch. General Ledger defaults to the latest Open period.

a. Note: If you enter a period prior to the current accounting period and the user profile option Journals: Enable Prior Period Notification is set to Yes, General Ledger will display a message indicating that you are entering a prior period journal. You must confirm that this is what you want to do.

b. Additional Information: Balance Type is a display–only field. It displays Actual when you are entering actual journals and Budget when you are entering budget journals.

5. (Optional) Enter a description for the journal batch.

6. Enter a Control Total if you want to verify the total debits for your journal batch against the batch control total. You can also enter a control total at the journal entry level.

7. Choose Journals to add journals to the batch.

Figure -2 The Journal batch creation screen.

Enter Journals to a Batch

One can enter a journal to an existing batch or can create a new journal. The following are the steps:

1. Navigate to the Enter Journals window.

2. Enter or query the batch for which you are entering journals. To enter a journal without entering batch information, choose New Journal and proceed to Step 4.

• To enter journals for a new batch, choose New Batch and enter the batch information.
• To add journals to an existing batch, query the batch and choose

Review Batch.

3. Choose Journals.

4. Enter a unique Journal name for the entry. If you do not enter a journal name, General Ledger automatically assigns a name using the following format: Source Journal ID Date.

If you did not enter a batch name before entering journals, General Ledger uses the name of the first journal in the batch to create a default batch name.

5. Enter the Period for the journal entry. If you entered a period at the batch level, you must use the same period for each journal entry in the batch. If you did not enter a period at the batch level, choose any Open or Future Enterable period for your journal entry. Note that you can only post journals in Open periods.

6. Accept or change the default Effective Date for the journal entry.

7. Enter a Category to describe the purpose of your journal entry, such as accrual, payments or receipts. All lines in a journal entry share the same journal category.

General Ledger defaults the journal category if you defined the profile option Journals: Default Category.

8. Enter an optional Description for the journal entry. General Ledger uses this as the default description for each journal entry line. You can change the journal entry description as necessary.

9. Enter a Control Total if you want to verify the total debits for the journal lines against the journal control total.

10. Accept the default Currency (the functional currency for your set of books), or change the journal currency to enter a foreign currency or statistical journal.

11. (Optional) If you have average balance processing enabled and your set of books is a consolidation set of books, select Standard or Average as the Journal Type.

In a consolidation set of books, you can create journal entries that affect either standard or average balances. The balances are not linked. In a non–consolidation set of books, you can only create journal entries that directly affect standard balances. Average balances are calculated automatically from your standard balances.

12. Enter a Reference description to further identify the journal entry on general ledger and journal entry reports.

13. (Optional) If you are entering an inter-company transaction within a single set of books, you can specify the clearing company. Note: You can define relationships in the inter-company Accounts window which General Ledger then uses to automatically determine a clearing company. The clearing company you manually enter in the More Details window may not override the relationships defined in the inter-company Accounts window.

14. Enter a reversal Date, Period, and Method. You can then generate a reversing journal entry to that effective date and period. You can also reverse a journal entry without assigning a reversal period. Reversal Method can be either:

Switch Dr/Cr: General Ledger creates your reversing journal by switching the debit and credit amounts of the original journal entry. This method is often used when reversing accruals. Change Sign: General Ledger creates your reversing journal by changing the sign of your original journal amounts from positive to negative. This reversal method is often used when reversing journals to correct data entry mistakes.

15. Return to the Journals window and enter the journal lines.

16. Save your work.

To Enter Journal Lines

The following are the steps for entering the line information in a journal:

1. Navigate to the Enter Journals window.

2. Enter your batch and journal information. Alternatively, you can set up a default category and accept all default batch and journal information to enter lines directly.

3. Enter a Line number for each journal line to control the sequence in which the journal entry lines appear online and in reports. After you enter the first journal entry line number, General Ledger automatically increments the numbers for the following lines. You can change the line numbers as necessary.

4. Enter an Account for the journal line.

5. Enter the Debit or Credit amount for the designated account.

Note: If needed, you can enter debits and credits as negative amounts.