Payables

Accounts Payable is used to record the Invoices and payments.

AP Integration:General Ledger
Projects

Purchasing

I Expenses

AP

Fixed Assets

Accounts Receivables
Options:-Options are nothing but a controlling the feature at operating unit
level.
There are three types of options in AP Module.
1. Financial Options
2. Payable Options
3. Payable System Setups
(1).Financial Options:-It will be shared by Purchasing and Accounts Payable
Module. Its is common setup between the AP and PO Module.
Step1:-Define the Financial Option
We have defined Financial Options in Purchasing Module.
(2).Payable Options:-It will be shared by only AP Module
Step1:-Define the Payables Options
Navigation:-Setup>Options>Payables Options

Some of the options, it was enabled by default. If we want we can un-check also.
Enable the When payment Clears
Enable the When payment Clears at Gain/loss

Click on the Currency

Enable the Use Multiple currencies, after enable this option under this
operating unit.it will allow to enter multiple currencies Invoices/Payments.
We can assign the Exchange Rate Typeby default or leave it black.
Enter the Realised Gain/Loss Accounts
Enter the Rounding Difference account.

Click on the Tax Reporting

This feature we can use for Income Tax Filling.

Click on the Invoice

Disable the Confirm Date as Invoice Number

Enable the Allow Online Validation
Enable the Allow Adjustments to Paid Invoices
Enable the Recalculate Schedules Payments
Enable the GL Date Basis System Date
Enter the Payment Terms

Click on the Approval

This feature we will enable, when we are using the AP Invoice Approval
functionality.
Click on the Matching

Enable
Enable
Enable
Enable

the
the
the
the

Allow Final Matching

Distribution Level Matching
Allow Matching Account Override
Transfer PO Descriptive Flex Field Information

Click in the Interest

This feature we can use, when ever organization paying interest amount to
vendor on late payments.
Click on the Expense Report

Expense Feature also we will enable later.at the time of Expense Reports.
Click on the Payment

Enable
Enable
Enable
Enable

the
the
the
the

Exclude Tax from discount calculation

Allow Pre-Date
Allow Void and Re-issue
Allow Address Change

Click on the above Tab and will display the With Holding Tax.
Click on the With Holding Tax

We will enable this option later, at the time of with holding Tax Functionality.
Click on the Report

Save and close this form.

Payable System Setups:-This option will be enabled for only AP Module.
Setp1:-Define the Payable Options
Navigation:-Setup>Options>Payable System setups

Change the Currency to INR

Change the Payment Term to Immediate
Disable the Always Take Discount
Disable the Hold unmatched Invoice

Save and Close.

Pay Group:-It is used to group the suppliers and also used in the payment batch
as parameter.

Term Date basis:-It will be determine the payment terms date, which date
system should consider.
Payment Term:-Payment term will determine the due date for payment.
(1).Normal Payment Term:Step1:-Define the Normal Payment Term.
Navigation:-Setup>Invoice>Payment Terms

Enter the Name and Description.

Enter the %
Enter the Days

Save and Close.

Invoices:-Invoices will be Received from the supplier and entered in the

Accounts Payable module. Invoices can be entered in two ways.
1. Single Invoices
2. Batch Invoices
Invoice will contain the 3 levels of Information.
1. Header
2. Lines
3. Distribution
There are various types of Invoices
1. Standard Invoice
2. Credit Memo
3. Debit Memo
4. Prepayment Invoice
5. Interest Invoice
6. Expense Report
7. Mixed Invoice
8. Retainage Invoice
9. Transportation Invoice
10.Recurring Invoice
11.Withholding Tax Invoice.
(1)Standard Invoice:-An Invoice which is received from the supplier and
entered in the payables system.it will increase the supplier balances.
Step1:-Create Standard Invoice
Navigation:-Invoices>Entry>Invoices

Select the Supplier Name, Site and Number.

Enter the Invoice Date
Enter the Invoice Number
Enter the Invoice Currency
Enter the Invoice Amount
Enter the GL Date
Enter the Payment Currency
Enter the Terms

Enter the Payment Method

Scroll to Right side

Select the Payment Method.

Click on the Lines

Enter the Line amount

Click on the Distribution

Enter the Amount

Enter the Account

Save and close.

Click on the General

Verify the Invoice Status Never Validated
Click on the Action

Enable the Validate button

Click on the OK

Invoice Status has been Validated

Click on the Action and Create accounting

Enable the Create Accounting

Enable the Final
Click on the OK
Accounting
Draft
Final
Final Post

Preview
Yes
Yes
Yes

Click on the OK

Final
No
Yes
Yes

Final
Post
No
Yes
Yes

Invoice got accounted

Step2:-Verify the Supplier Balances.
Navigation:-Invoices>Inquiry>Invoices

Enter the Supplier Name

Click on the Calculated Balance Owed

Select the Operating Unit Name

Click on the Calculate

Supplier out standing balances.

Banks:-If we want to make the payment bank needs to be created.
Grant Bank Access to the Legal Entity:-In R12 Bank creation has been
changed
Log into the System administrator Module and assign to user id the User
Management Module.
Navigation:-Security>User>Define

Assign the User Management Responsibility

Save and close the form.
Note:-If any errors are occurring using own user id, we can use another user id
password (user id=sysadmin,password=sysadmin).we wont get any errors using
this user id.

Log into the Sysadmin user id.

Click on the User Management Responsibility

Click on the Roles & Role Inheritance

Select
Select
Select
Select

the
the
the
the

Type is Roles & Responsibilities

Category is Miscellaneous
Name XYZ%Payable%Supe%
Application Payables

Click on the GO

Click on the Update

Click on the Security Wizards

Click on the CE UMX Security Wizard Run Wizard

Click on the Add Legal Entity

Enter the XYZ%

Click on the GO

Select the Legal Entity

Click on the Select

Click on the Apply

Again click on the Apply
Step2:-Log into the Payables Module and Create the Banks
Navigation: - Setup>Payment>Banks and Bank Branches

Click on the Bank

Click on the Create button.

Step3:-Define the Bank Branches.

Navigation:-Setup>Payment>Bank and Branches
Step3:-Define the Bank Accounts
Navigation:-Setup>Payment>Bank Accounts
Internal Accounts:-Its an organization account, it is used to receive the Money
from the customers and make the payments to Suppliers.
Manage Payment Documents:-Payment document will deter mine the
payment document format and payment document numbers
Step1:-Define the Payment documents.

Supplier Bank Accounts:-We can define the supplier bank account for EFT
Fund transfers.
Step1:-Define the Supplier Bank account
Navigation:-Supplier>Entry
Query the Supplier and Define the Supplier bank accounts.
Payment Process Profile:-This is the new Feature in R12.Using this feature we
can control some of the options.
Step1:-Define the Payment Process Profile.
Navigation:-Setup>Payment>Payment Administrator
Payments:-Payments can be define in two ways
1. Single Payments
2. Batch Payments
(1)Single Payments:-There are 3 types of single payments.
1. Quick
2. Manual
3. Refund
(1).Quick Payment:-Quick payment type will be used to print the check by
system it self.
Step1:-Verify the Payment status in Invoice level.
Navigation:-Invoices>Entry>Invoices
Step2:-Verify the Supplier Balances
Navigation:-Invoices>Inquiry>Invoices
Step3:-Create a Payment
Navigation:-Payment >Entry>Payment
Step4:-Verify the Invoice Level Payment Status
Navigation:-Invoice>Entry>Invoice
Step5:-Verify the Supplier Balances
Navigation:-Invoices>Inquiry>Invoices