Accounts Payable Setup: Define Payment Terms

Define Payment Terms

Platform: R12

Payables Manager –> Setup –> Invoice –> Payment Terms

Payments Terms are assigned to an Invoice to automatically create scheduled payment when Payables Invoice Validation is submitted for the Invoice

You can define payment terms to create multiple scheduled payment lines and multiple levels of discounts. You can create an unlimited number of payment terms.

Payment terms have one or more payment terms lines, each of which creates one scheduled payment. Each payment terms line and each corresponding scheduled payment has a due date or a discount date based on one of the following:

• a specific day of a month, such as the 15th of the month
• a specific date, for example, March 15, 2002
• a number of days added to your terms date, such as 14 days after the terms date
• a special calendar that specifies a due date for the period that includes the invoice terms date. Only due dates can be based on a special calendar. Discount dates cannot be based on a special calendar.

Payment Terms

Define Payment Terms

1. Enter Unique payment term name and description.
2. If you enter Day of Month terms, enter a Cut-off Day.
3. If you enable Automatic Interest Calculation using the Interest Payables Options, enter a unique value in the Rank field.
4. Enter each payment terms line.

Enter % due or Amount to determine the portion of an invoice due on the scheduled payment.

In the Due tab, choose between Calendar, Fixed Date, Days and Day of Month and Months Ahead to determine the due date.

1. If you use discount terms, define payment terms lines in the First Discount , Second Discount, and Third Discount tabs. Define your discounts so that the first discount has an earlier discount date than the second and so on. You can realize only one discount on a payment terms line.

Note: You cannot use a special calendar to define discount terms.

(Document based on Oracle Window Help)

Bauccha Shameem

29 June 2009

Accounts Payable Setup: Set Multi-Org Preferences

Set Multi-Org Preferences (optionally required)

Platform: R12

Payables Manager –> Setup –> Options –> User Operating Unit Preferences

Multi-Org Preferences

If you are using a Multi-Org structure, and you want to restrict Org Access, then set the Multi-Org Preferences.

Set the User Level Default Operating Unit.

Set the Preferred Operating Units.

Bauccha Shameem

29 June 2009

Accounts Payable Setup – Define Payables Options

Platform: R12

You cannot define the Payables Options unless the Financials Options have been defined.

Payables Manager –> Setup –> Options –> Payables Options

Based on your profile options, your ‘Operating Unit’ is automatically picked up.

1. Accounting Option

Payables Options: Accounting Option

2. Currency

Payables Options: Currency

3. Tax Reporting

Payables Options: Tax Reporting

4. Invoice

Payables Options: Invoice

5. Approval

Payables Options: Approval

6. Matching

Payable Options: Matching

7. Interest

Payables Options: Interest

8. Expense Report

Payable Options: Expense Report

9. Payment

Payable Options: Payment

10. Withholding Tax

Payable Options: Withholding Tax

11. Report

Payable Options: Reports

Accounts Payable Setup – Payables System Setup

Platform: R12

Payables Manager –> Setup –> Options –> Payables System Setup

Define the Payables System Setup Options

Payables System Setup

Specify the Supplier Number generation options, Payment Terms and Invoice Match Option Control.

Shameem Bauccha

24 June 2009

Accounts Payable Setup – Financials Options

Platform: R12

Prerequisite: Inventory Calendar and Inventory Organization must have been set up.

Refer to the following documents:

Define Inventory Calendar

Setup Inventory Organization

Payables Manager –> Setup –> Options –> Financial Options

Based on your profile options, your ‘Operating Unit’ is automatically picked up.

Refer to the following documents:

System Profile Values for GL

Define Operating Unit (Document to follow)

You have to fill in the following tabs to configure the Financials Options:

1. Accounting
2. Supplier – Purchasing
3. Encumbrance
4. Tax
5. Human Resources

1. Accounting

Financial Options: Accounting

Specify the number of ‘Future Periods’. Fill in the GL Accounts where required.

Note: If during the defining of our Accounting Key Flexfield Structure, we have allowed dynamic insert, we can enter the accounts directly without having to create the accounts first. If that is not the case, then we need to create all the valid accounts combinations before we can use them here.

Refer to the following documents:

Define Accounting KFF – Create Chart of Accounts

2. Supplier – Purchasing

Financials Options: Supplier-Purchasing

Specify the Ship-to Location and Bill-to Location. Inventory Organization is mandatory.

Note that we need to create the Inventory Organization and define the Additional Organization Information Details.

3. Encumbrance

Financials Options: Encumbrance

Specify the options for encumbrance if you are using encumbrance accounting.

4. Tax

Financials Options: Tax

Specify your VAT Registration information if applicable.

5. Human Resources

Financials Options: Human Resources

Based on your profile options, your Business Group is automatically picked up.

Specify your ‘Expense Reimbursement Address’. The Employee generation method is automatically picked up from the Extra Information configured on your Business Group.

Refer to the following documents:

Define Business Group (Document to follow)

Shameem Bauccha

24 June 2009

High Level Setup for Accounts Payable (AP) on R12

Platform: R12

Prerequisite (Inventory Shared Entities Setup)

Inventory Calendar and Inventory Organization must have been defined. Inventory Organization Parameters is also required.

Refer to the following documents:

Setting up Organizations

Define Organizations

Define Inventory Organizations

Define Business Group (Document to follow)

Define Operating Unit (Document to follow)

High Level Setup for AP

Setup Options

1. Define Financials Options
2. Define Payables Options
3. Define Payables System Setup

Calendars

1. Define Special Calendars (optional)

Payment Terms

1. Define Payment Terms
2. Define Distribution Sets (optional)

AP Lookups

1. Define Lookups (Optional)

AP System Profile Options

1. Define Profile Options (Optional)

Documents

1. Define Document Sequences (Optional)
2. Define Document Categories (Optional)
3. Define Document Sequences Assignment (Optional)

Invoice Setup

1. Define Invoice Tolerance (Optional)
2. Define Invoice Approvals (Optional)
3. Define Aging Period (Optional)

Periods

1. Open and Close Accounts Payables Period

Templates

1. Expense Report Templates (Optional)

Setup Payments

1. Define Payment Formats (Optional)
2. Define Payment Process Profiles (Optional)
3. Define Disbursement System Options (Optional)

Bauccha Shameem

24 June 2009