Friday, 17 April 2015



Table of Contents
Supplier Creation in Oracle Payables
  1. Overview of Suppliers :
  2. Supplier Creation procedure:
A) General information:
B) Address Book Page:
C) Contact Directory:
D) Business Classification Page:
E) Products & Services:
F) Supplier Banking Details Page:
G) Accounting Page:
H) Tax and Reporting:
I) Purchasing Page:
J) Receiving:
K) Payment Details:
L) Invoice Management Page:



Supplier Creation in Oracle Payables
  1. Overview of Suppliers :

We setup suppliers in the Suppliers page to record information about companies and individuals from whom we purchase goods and services. When we enter a supplier that does business from multiple locations, we enter common supplier information only once, and we enter supplier sites for each location.
Most of the supplier information defaults to supplier sites. However, we can override the values that default if necessary.




  1. Supplier Creation procedure:

To create suppliers, user payables responsibility.
Navigation: Suppliers > Entry


The Below screen will open
Before creating Supplier it is good practice to check whether any supplier is existing with the same name.
For checking, enter the supplier name in the supplier name column and click on Go Button.
In the below screen we have given Supplier name as Vision and click on Go button.
The system displayed the list of existing suppliers with Vision as part of the name.


In this manner we can check the existing suppliers name before creating supplier.
After checking the list of suppliers, create a supplier with a unique name for the supplier.


Click on Create Supplier and enter basic information and click on apply.
Once clicked on Apply, below screen will appear and you can lot of information in left side of the supplier screen.


A) General information:
In Supplier type :   Standard Supplier.
Organization Name : Rama Traders
Only these two fields are mandatory : Optional
Remaining information like : Optional
Alias : Optional
Name Pronunciation : Optional
D-U-N-S Number : Optional
URL, Context Value : Optional
Line of Business of the Party : Optional
Tax Country : Optional
Tax Registration Number : Optional
Taxpayer ID : Optional
Context : Optional
Supplier Home Page : Optional
The below screen will open
Check the information:
Supplier Name : Rama Traders
Supplier Number : 10030 (Automatically Created)
Registry ID : 61216 (Automatically Created)
Click on the Address Book option at the left side of the screen.

B) Address Book Page: For every supplier, we can create an unlimited number of supplier sites with different addresses and contacts. We can buy from several different sites while sending the payments to only one site. 
The below screen will appear.
Click on Create Button.
Then the below screen will open.
Fill the following information.
Give Country:
Address Line 1
City:
Country:
State:
Post Code:
Address Name:
Select Address: Purchase & Payment


Define how supplier sites can be used by setting the purpose for the supplier address:
Payment You can import/enter invoices for and make payments to the site.
Purchasing You can create purchase orders for the site.
RFQ Only You can create request for quotations in Purchasing for the site. You cannot create purchase orders for an RFQ Only site.
For each supplier site, you can enter contact information (name, address, telephone) specific to that site.  Contact information is for your reference only.
Click on Continue Button.
The below screen will open.




Assign the address to the vision operations operating unit by selecting the check box click on apply.
Once you click on apply below screen will appear.


To update the supplier site attributes, click on manage Sites. and enter the required information.




Select the Purchasing and Pay options, and click on Apply button.






C) Contact Directory:
Create Contact information for newly created site. For createting contact information click on contact directory menu on the left side of the screen.



Click on the Create button.


Give Contact Title,
First Name & Last Name.
Then add the new site which has been created to this contact.
Click on Add another row and select newly created site name in address name field and click on apply.

D) Business Classification Page:
For providing information related to the Supplier like, whether the supplier is central Government, State Government, Service provider, Hospital etc.
We can provide such information in this page.
We can categorize the Supplier business. We can select the category of the supplier and provide information relating to it.






E) Products & Services:
Select the Products & Services tab at the left side of the screen the below screen will open.
Click on Add button.
The below screen will open.
We can select the type of business and click on Apply Button.
The Products and Services page allows you to categorize the types of goods and services that each supplier can provide. Typically, this categorization is something that you would ask the supplier to do themselves through I Supplier Portal.

















F) Supplier Banking Details Page:
Use Banking Details page to define the bank accounts used for making payments to suppliers.
Click on the Banking Details tab at the left side of the screen.
Then select the site and Click on the Add Button of the Bank Accounts.
Select the bank account which you want to attach to the site and click on Select button and click on save button.
If you want to create Bank Account then click on the Create button. And create the Bank Account as usual.
You can select the name and number of the bank account from the list of values that includes all active supplier type bank accounts or you can create a new bank account.
For each supplier and supplier site that has bank account assignments, you must designate a primary bank account.  The primary bank account is used by Payables as a default when you pay this supplier electronically.  You may override the default if necessary.

G) Accounting Page: Click on the Accounting tab on the left side of the screen.
See that the Liability Account, Payment Account are updated or not.
The system will pick up these accounts by default. These accounts are taken from the financial options in Accounts Payable Setup Screen.


Click on save button.















H) Tax and Reporting: Click on the Tax and Reporting option at the left side of the screen. The below screen will appear.
We can apply tax for this supplier by selecting the Allow Tax Applicability option and
We can also select the Set for Self-Assessment / Reverse Charge option
We can assign a particular Tax rate to the Supplier etc.
Here we can create sites for the supplier
We can define sites as the Income tax Reporting sites etc.
After making necessary changes click on the Save button.


I) Purchasing Page: Click on the Purchase Page option on the left side of the screen.
The below screen will appear.
All New Orders
All supplier purchasing values default to new supplier sites you enter. Supplier site values default to all new purchase orders and purchase requisitions. You can override any purchasing defaults during supplier site entry and purchasing document entry.
Ship-To Location/Bill-To Location
Suppliers generally send invoices and shipments for goods and services to Ship-To and Bill-To Locations.  These locations are often not the same.
Ship Via
Ship Via allows you to indicate a preferred carrier that you’d like the supplier to use when shipping to you.


Pay On Receipt
The Pay on Receipt functionality allows you to create invoices based on receipts and purchase order information in the system.  This functionality is generally used with suppliers who send ASNs (Advance Shipment Notices) and ASBNs (Advance Shipping and Billing Notices).
Alternate Pay Site
Pay site to be used as the supplier site when the system creates self-billing invoices for this supplier. This list of values is limited to active pay sites for the supplier.
Invoice Summary Level
The level at which you want to consolidate invoices for this supplier site when you submit the Pay on Receipt Auto Invoice Program.
Freight Terms
Freight Terms indicate whether you or your supplier pays the freight charges for the goods you ordered.
Create Debit Memo from RTS Transaction*
If you enable the Create Debit Memo from RTS (Return to Supplier) Transaction option, you will have the option of allowing Workflow to automatically create a debit memo when processing a return to supplier.
*This is the only purchasing option that you can set at both the supplier and supplier site level.
After providing all the information save the work




J) Receiving: Click on the Receiving option to the left side of the screen.
The below screen will appear.


Here we can provide information relating to Receipt Routing, Ship to Location, Match Approval, Tolerances for Quantity of goods received etc.
After providing information click on save button.





K) Payment Details: Use the Supplier: Payment Details page to specify the general payment details and payment attributes for the supplier and supplier sites.
Payment Method
The Payment Method is the form of payment used for each supplier invoice.  Options include check, electronic, wire, or outsourced check. 
Pay Each Document Alone
If the Pay Each Document Alone option is enabled, a separate payment is created for each invoice.  If it is not enabled, a single payment is made for multiple invoices.
L) Invoice Management Page: Click on the Invoice Management option on the left hand side of the screen. The below screen will open.
Use the Supplier: Invoice Management page to specify the defaults and controls for supplier invoices and to specify the payment details related to supplier invoices. The defaults come from the defaults you enter in the Payables System Setup window, except the default for Allow Interest Invoices, which come from the Payables Options.
Invoice Amount Limit
If you enter an invoice for a supplier site that exceeds a pre-specified invoice amount limit, Payables will automatically place the invoice on an Amount Hold during the Invoice Validation process.
Invoice Match Option
The Invoice Match Option determines whether or not you intend to match invoices for this supplier against purchase orders or receipts.
Hold All Payments
Select the Hold All Payments option to prevent any invoices entered for the supplier site from being selected for payment processing.
Hold Unvalidated Invoices
If the Hold Unvalidated Invoices option is selected, Payables will automatically apply a Supplier hold to all invoices as they are entered.
Hold Unmatched Invoices
If the Hold Unmatched Invoices option is selected, Payables will automatically apply a Matching required hold to all unmatched invoices.
Payment Hold Reason
The reason you are applying a payment hold to an invoice.
Payment Priority
A number, 1 to 99 (1 being the highest, 99 being the lowest), which represents the priority of payment. The system uses the Supplier Site value to automatically assign a Payment Priority to an invoice's scheduled payment(s) during invoice entry.
Terms
The system uses payment terms to automatically calculate due dates, discount dates, and discount amounts for each invoice in order to schedule payments.  Additional terms can be added to the list of values through the Payment Terms window.
Terms Date Basis
The Terms Date Basis is the date you select for Payables to use as the basis for calculating the scheduled payment.  Below are the options available listed in order from the earliest date selection to the most recent date selection.
Goods Received
Invoice (Date)
Invoice Received
System (Date)
Pay Date Basis
The Pay Date Basis determines if the system will create a payment at the end of the discount period or by the due date.
Pay Group
The default for this field is the Payables option you define for Pay Group. You can override this default during supplier site entry or invoice entry.
Always Take Discount
Enable the Always Take Discount check box to have Payables always pay the discounted amount regardless of whether payment is made within the discount period or not.
Exclude Freight from Discount
If you select the Exclude Freight from Discount check box, the system will exclude freight prior to calculating discounts.
Create Interest Invoice
If you select the Create Interest Invoice check box, the system will automatically create invoices for interest. If this option is enabled, Payables calculates interest for the supplier's overdue invoices and creates corresponding interest invoices when you pay the overdue invoices. Payables calculates interest only for invoices that are overdue 365 days or less. If you enable this option, it is automatically enforced for all of a supplier's sites. Payables automatically enables this option in this window if you enabled this option in the Payables Options window. If this option is not enabled in the Payables Options window, you cannot enable it here
Enforce Ship-To Location
Values for the Enforce Ship-To Location include none, warning and reject.
Reject prevents entry of the receipt in the system.
Warning provides a message of the discrepancy, but will allow the receipt entry to continue.
None allows the receipt to be entered and will not provide a warning message of the discrepancy.
Receipt Routing
Receipt routing indicates which default location will be used at the point of initial receipt and generally the number of steps it takes for the item to reach its final destination.  Below are the options available.
Direct Delivery. 1 step to the final destination
Standard Receipt. 2 steps: 1st to receiving, then to the final destination
Inspection Required.  3 steps: 1st to receiving, next to inspection, then to the final destination
Match Approval Level
The Match Approval Level indicates what information will be compared to determine whether an invoice can be validated or not.  Options are:
2-Way:  Purchase order and invoice quantities must match within tolerance before the corresponding invoice can be paid.  The receipt close tolerance should be set to 0% to allow the system to automatically close fully received lines.
3-Way:  Purchase order, receipt, and invoice quantities must match within tolerance before the corresponding invoice can be paid.
4-Way:  Purchase order, receipt, accepted, and invoice quantities must match within tolerance before the corresponding invoice can be paid.
Quantity Received Tolerance
The maximum acceptable over-receipt tolerance percentage.
Quantity Received Exception
The action to be taken when the quantity received tolerance is exceeded.
Days Early/Late Receipt Allowed
The window within which delivery will be allowed.
Receipt Date Exception
The action to be taken when delivery occurs outside of this window.
Allow Substitute Receipts
If Allow Substitute Receipts is enabled, receivers can receive previously defined substitute items in place of ordered items.
Allow Unordered Receipts
Allow Unordered Receipts permits receivers to acknowledge receipt of unordered items.  If enabled, you will need to later research and match the unordered receipts to the appropriate purchase order. 
After providing all the information, click on the save button.
The system will provide confirmation that changes to invoice management have been saved.
Note: If we want to create Tax authorities as supplier then in addition to the above settings we need to do the following setup also.
Click on the Organization Option on the left side of the screen.
Then the following screen will open.


In the Type Select the option (for example if you want to select service tax authority, then: Indian Service Tax Authority.
If you are planning to create one time vendor, then select the One Time Option in the Organization window.




1 comment:

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