PeopleSoft Practice

Accounts Payable

Agenda
Account Payables Introduction Creation of Vouchers Posting the Vouchers Matching Payment Processing Posting the Payments

Q&A
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What is Accounts Payable ?

Accounts Payable - Money owed to suppliers

For goods or services purchased on credit

PeopleSoft Payables Optimizes your procure-topay process Flexible, user-defined setup, streamlined data entry, extensive vendor maintenance, and powerful inquiry capabilities enable an organization to manage cash disbursements and collaborate with vendors efficiently.
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Payables Business Processes

Payables Integration Flow

Establishing Payables Business Unit

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Payables Business Unit is an operations subset of the organization One Payables BU can be linked to only one General Ledger BU Multiple Payables BU may be associated to a GL BU It is the highest level from which information can default
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Establishing Payables Options

Accounting

date setup Approval Options Duplicate Invoice Checking Chatfield Edit setup Voucher Balancing Setup Payment options - Terms, Method, Bank Code, Account, Handling Code Tax tolerance
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Basic Concepts

Voucher Origin It is an identifier for specified creation point of voucher. It can be a department, operator or interface Control Groups It identifies a group of vouchers that should be processed together for specific control and verification purposes. Exclusively used for vouchers that are uploaded into PeopleSoft from other environments Vendor Is a supplier or an employee from whom the Business Unit obtains goods or services. It is defined at Set ID. Open Item Accounting Enables to define, control and maintain sub-ledger detail. They can be tracked until their balance is zero.

Basic Concepts

Voucher It may be an invoice, expense report or an adjustment that requires processing. It can be entered directly into Payables or loaded from an interface Voucher Deletion Once a voucher is deleted, it cannot be retrieved. However, the data row remains in the table and the voucher number cannot be reused. Unposting Voucher A voucher can be unposted even if it has been fully paid, partly paid or scheduled for payment. However, if the payment has been posted, then the amount field cannot be edited on the voucher distribution lines.
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Basic Concepts
Close Voucher Used when the remaining liability has to be written off. A voucher can be closed provided it is posted, not selected for payment and not fully paid. Quick Invoice Entry Contains lesser number of fields than Regular Voucher. Can be used for entering vouchers without any purchase order or receiver data.

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Types of Banks

External: A bank or counter party that exists separately from your organization. External banks are those you conduct business with outside of your organization, such as banking partners, brokers, issuers, and guarantors. You can associate external banks with a reconciliation method, cutoff times, settlement instructions, vendor banks, customer banks, and employee banks Internal: A bank or counter-party that is part of your organization (for example, a central Treasury, a subsidiary company, or an operating division). Netting: Netting accounts are virtual accounts that exist only within your organization. You create netting accounts to net the cash flow between Payables and Receivables items.

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Bank Setup

Define Supporting Data Bank ID Qualifier and Bank Name Payment forms Define Banks Bank Name, Bank address and Credit Rating Define Financial contacts Define Bank Branches Address and Contact Information Define External accounts Link the account to modules Specify manual or automatic reconciliation sources Specify payment method and numbering options
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Maintaining Vendor Information

All Payees are considered Vendors

Ve ndor Inform ation

Ve ndor Approval
P eopleS oft P ayables

Ve ndor Conve rs ations

Ve ndor Bank Accounts

Ve ndor Withholding

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Maintaining Vendor InformationContinued

Defining Vendor Information:

Identifying information that will tell you what kind of vendor youre enteringstatus, class, and other basic business information. Physical addresses for the vendor. Location information including remit to and pricing locations. Procurement defaults that will define your relationship with your vendor and tell the system how to handle voucher error and approvals. Payment options that will establish defaults for payment processing. Withholding information used to process withholding. VAT information for processing VAT. Vendor contacts Vendor Bank accounts used for EFT processing

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Voucher Process Flow

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Types of Vouchers

Regular Voucher Used to enter PO vouchers and vouchers that require matching to PO and Receipts Adjustment Voucher For Credit and Debit memos and relating vouchers Reversal Voucher Creates a new voucher with reversal accounting entries and back out encumbrances Journal Voucher For adjusting accounting entries Prepaid Voucher For down payments, progressive payments and deposits Register Voucher To accrue an individual voucher for which expense distribution is not known Template Voucher To create and enter multiple similar vouchers Third Party Voucher Enter vouchers for charges and other merchandise

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Entering Vouchers

Invoice Header information Line Information and Charges Schedule Payment Record Payment Approvals and Matching Accounting information Currency Template Information Status Summary Voucher Posting
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Methods of Entering Voucher

Online Vouchers Enter Invoice information, vendor information, freight and taxes, payment schedule and payment method Quick Invoice Entry There are only 4 required fields Business Unit, Vendor ID, Invoice ID, Invoice date and merchandise Amount. Rest of the fields will be pulled in by Voucher Build process Voucher Build and Voucher Edit Batch Process - Voucher Build associates purchase orders and receivers for vouchers based on the Voucher Build Criteria, creates any control groups, enters miscellaneous charges, checks header and line balances, and logs any errors. If applicable, it creates payment records.

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Voucher Processing

Voucher Edit is an Application Engine program that loads new voucher data from the Voucher Build temporary processing tables and/or any recycled vouchers from the online tables to the Voucher Edit work tables -- Updates the vouchers with default values for fields without data -- Performs field-level, relational, and balancing edits for the voucher header, voucher line. -- Calculates net payment dues dates, discount due dates, and discount amounts according to the payment terms. -- Prorates freight, miscellaneous charges, sales tax, use tax, VAT, and discounts across distribution lines for applicable voucher lines.

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Establish Recurring Voucher Contracts

PeopleSoft allows creating recurring voucher contracts by establishing a base voucher as a template and setting a recurring payment schedule for it. From base voucher create recurring vouchers and schedule the vouchers. In the second panel in the Recurring Voucher Contracts panel group, Schedule Contract, specify the interval between vouchers, the duration of the contract, and generate a payment schedule for the series of vouchers. This panel is used to explode the recurring vouchers.

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Organizing Voucher with Control Groups

Voucher control groups are groups of vouchers that are processed together for specific control or verification Enter Number of Vouchers in a batch through control group Define, assign, and review voucher control groups in the Enter Voucher Information, Use, Group Information panel group. Control Group is one among the Control Hierarchy in Accounts Payable
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Regular Entry
Payables->Vouchers->Regular Entry

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Tables Getting Impacted

PS_GRP_AP: Stores AP control groups. PS_VOUCHER: AP voucher header table. PS_VOUCHER_LINE: AP voucher line. PS_DISTRIB_LINE: Voucher distribution table. PS_RT_RATE_TBL : Market Rate Data Tale. There is also the market rate default view RT_DFLT_VW.

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Vendor Tables:

VENDOR: Stores vendor related information. VENDOR_ADDR: Vendor address related info. VENDOR_LOC: Vendor locations. VENDOR_PAY: Payment processing sepecifications such as payment method, payment handling code, bank code and so forth. VENDOR_ADDR_SCROL: Index to address table. VENDOR_CNTCT_SCR: Index to contact table. VENDOR_LOC_SCROL: Index to location table. VENDOR_ID_NBRS: Additional ID numbers (Dun & Bradstreet numbers). VENDOR_ADDR_PHN: Vendor phone numbers. VENDOR_CNTCT: Vendor contacts. VENDOR_CONVER: Vendor conversations. VENDOR_INVOICE: Stores vendor invoice related flags. VENDOR_TYPE: Vendor type codes. VNDR_BANK_ACCT: Vendor electronic payment information. VNDR_CNTCT_PHN: Vendor contact phone numbers. VNDR_IND_CLASS: Vendor Standard Industrial Classification (SIC) codes. VNDR_URL: Vendor website address. VNDR_VAT_RGSTRN: Vendor VAT information. VENDOR_WTHD: Witholding data. VENDOR_WTHD_JUR: Witholding type.

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Posting Vouchers

The Voucher Posting Application Engine process (AP_PSTVCHR) creates balanced accounting entries for vouchers. The system combines information entered for a voucher with other control informationoffset accounts stored on the accounting entry templates and Chartfield inheritance rulesto create the balanced entries. Vouchers do not have to be approved for accounting entries to be created. You post vouchers through a batch process that you run periodically using Process Scheduler. You can continue to process new transactions online during posting. PeopleSoft Payables also enables you to unpost vouchersthat is, you can back out the accounting entries made to accrue the liability and reopen the vouchers for amendment or closure. Once vouchers are posted, the information created is available for distribution to other business processes, such as the Journal Generator Application Engine process (FS_JGEN), which converts payables accounting entries to general ledger journal entries. Evaluate posting results using the Voucher Accounting Entries page

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Voucher Posting Accounts Payable->Batch Processes->Vouchers>Voucher Posting

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Running Matching

Matching is a flexible process that compares vouchers with purchase orders and receiving documents. Types of Matching Two-way matching - matches vouchers and purchase orders Three-way matching - matches vouchers, receiving information and purchase orders Four-way matching matches vouchers, receiving information, purchase orders and inspection status Evaluated Receipt Settlement (ERS) - matches receivers against purchase orders and generates vouchers without requiring an invoice
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Payment Creation
Payments can be created in two ways:

Express Payment creation:

Only one payment is created for the vendor, unless the Separate Payment option or the Do Not Mix Units options are selected. In those cases, more than one payment can be created to pay the vendor.

Paycycle creation:

The Pay Cycle process is a flexible tool. You can review payments after specific processing stepssuch as after payment selection and before payment creationand correct exceptions before proceeding to the next step. Or you can run the Payment Selection and Payment Creation processes together if there is no need to review the payments after selection. If you have a large payment run and only a very small percentage of exceptions, you do not have to delay payment processingyou can continue the current pay cycle, resolve exceptions, then process the payments in a different pay cycle run. The centerpiece of payment processing in PeopleSoft Payables is the Pay Cycle Application Engine process (AP_APY2015), which creates the payments. Various output process then transform these payments to flat files that are sent to the financial institution for settlements. Pay Cycle is also integrated with PeopleSoft Financial Gateway processing. PeopleSoft Financial Gateway handles electronic settlements between PeopleSoft Payables and financial institutions, formatting payments, and sending acknowledgement messages between the systems.

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Establish Pay Cycles

Payment Process starts when a voucher is entered, approved and scheduled. Steps in Payment Process

Schedule Payments One payment per voucher is automatically scheduled based on Invoice Date and Payment Terms provided during Voucher Entry Select Payments Vouchers are selected for payment by Pay Cycles based on criteria specified on Payment Selection Criteria page. Review Payments The Pay Cycle Manager integrates Vendor information, vouchers, business unit information and payment method information to produce payments. On running the Pay cycle Manager, the selected payments can be put to 5 actions None, Exclude, Hold, Hold & Separate and separate
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Establishing Pay Cycles-continued

Create Payments After reviewing, create and send payments to a printer or a file such as ACH files, EFT files, wire transfer reports and positive payment files Print Checks, Advices and Transfers Create payment outputs such as system generated checks, EFT or ACH payments or letter of credit advices Post Payments The process of payment posting creates accounting entries from payment related transactions and realized gain/loss offsets. Reconcile Payments Cash clearing Express Checks Enables to quickly create adhoc payments outside regular payment cycle. It can be for more than one voucher for a specific vendor Manual Payments They are entered by creating a voucher for payment and selecting Record as payment action.

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PeopleSoft Payables Control Hierarchy

Express Payment
Account Payables->Payments->Express Payments

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Paycycle Manager
Account Payables->Payments->Pay Cycle Processing

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Posting Payments

The Payment Posting process creates accounting entries from paymentrelated transactions, such as system-created payments, manual payments, drafts, electronic file transfer (EFT) payments, ACH payments, and canceled payments. The Payment Posting process also creates realized gain or loss offsets when a transaction is entered in a different currency than the base currency and the rates have fluctuated between the invoice and payment dates. These accounting entries are then available to the Journal Generator process to pass to your general ledger. There is a difference between running the Voucher Posting and Payment Posting processes and running the Journal Generator process. Before you can transfer a voucher or payment to the general ledger, it must be associated with accounts. The posting processes create all accounting lines. Voucher accounting lines are created based on the distribution lines from voucher entry. However, proration of non-merchandise charges result in accounting lines that are different from what was actually entered in the distribution lines.

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Payment Posting
Accounts Payable->Batch Processes->Payment->Payment Posting

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Main Tables getting Impacted

PS_PAYMENT_TBL: AP disbursements table.

PS_PYMNT_VCHR_XREF: Voucher Scheduled Payment. PS_VCHR_ACCTG_LINE: AP accounting entries.

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Q&A

ANY QUESTIONS
PLEASE

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Thank You for Your Participation

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