rd050 account payables

8/10/2019 RD050 Account Payables

http://slidepdf.com/reader/full/rd050-account-payables 1/19

RD.050 BUSINESS REQUIREMENTS SCENARIOS FOR CORE BUSINESS PROCESS

ORAERP Inc. COMAPNY

Oracle Accounts Payables

Author:

Creation Date: 02-June-13Last Updated: 02-June-13

Document Ref: RD050_AP

Version: 1.0 Final

Approvals:

NAMES



RD.050 Business Requirements Scenarios Doc Ref:

RD.050

Ver.1.1 Final

Document Control

Change Record

4

Date Author Versio

n

Change Reference

29-May-

13

1.0 No Previous Document

References

Document Name Ref.

MOM & AS-IS flow charts recorded --

Accounting policies and procedure manual

by D&T

AP

Business plans for unbundled companies by

D&T

--

Proposed Organizational Chart for 10

companies

--

Sector Law --

Tender specification requirements (excel

h t )

--




RD.050

Ver.1.1 Final

Note To Holders:

If you receive an electronic copy of this document and print it out, please write

your name on the equivalent of the cover page, for document control purposes.

If you receive a hard copy of this document, please write your name on the front

cover, for document control purposes.




RD.050

Ver.1.1 Final

1. BUSINESS PROCESS IDENTIFICATION ERROR!

BOOKMARK NOT DEFINED.

1.1 Supplier Creation (AP001) .................................................................................................................. 81.2 Creating Standard Invoice – With Purchase Order/ GRN (AP002) ................................... 8

1.3 Creating Standard Invoice – Without Purchase Order (AP003) ...................................... 10

1.4 Creating Prepayment Invoice (AP004) ....................................................................................... 12

1.5 Entering Credit Memo (AP005) ...................................................................................................... 14

1.6 Payment (AP006) .................................................................................................................................. 15

2. BUSINESS PROCESS DIAGRAMS ERROR!


2.1 Invoice WorkBench .................................................................Error! Bookmark not defined. 2.4 Invoice Processing For Assets ............................................Error! Bookmark not defined.

2.5 Payment Process ......................................................................Error! Bookmark not defined.

2.6 Month End Process ..................................................................Error! Bookmark not defined.

3. OPEN AND CLOSED ISSUES FOR THIS DELIVERABLE ERROR!




RD.050 Business Requirements Scenarios Doc Ref: RD.050

Ver.1.1 Final

Objectives

The objective of this document is to outline the Business Requirements, in as much detail as possible, related to

General Ledger business processes in ORAERP COM INC., Abu Dhabi, to facilitate implementation of Oracle

Accounts Payables.

BASIC GUIDELINES TOWARDS FINALISATION OF BUSINESS REQUIREMENTS/CURRENT BUSINESS

BASELINE DOCUMENT SHALL BE TO ENSURE AN EFFICIENT, SMOOTH AND EFFECTIVE

IMPLEMENTATION, BY OBSERVING THE FOLLOWING:

1. The objective is to utilize to the best possible extent, the flexibility and facilities of Oracle General

Ledger.

2. Flexibility, therefore, will be the norm and will be ‘Built – In’ at every stage to the best possible extent,

based on available current information on the Business Processes given by the users.

3. Reduction of the gaps will be ensured as far as possible.




Ver.1.1 Final

Scope

The scope of this study is limited to the functions pertaining to Accounts Payble based on the Business

Requirements information provided by ORAERP COM INC..

The focus of the study and this document is to identify and outline the processes involving the

management of the Accounts Payable functions in the Oracle Application.

Business requirements Information

A combination of the following methods were used for collecting data on current business scenario

and future requirement for the 10 new companies-

Standard questionnaire based discussions with purchasing and stores departments on

requirement of standard functions, special issues

Visit to all all major stores and study of all processes, procedure, documents

Overview of current IT systems being used

Current forms and reports used for purchasing, contracts and inventory functions

Document review of proposed Business plans, Statement of Accounting policies and procedures

by Deloitte & Touche with reference to inventory & purchasing function

(SAPP 3 & 12)

Study of proposed draft organization structure for the 10 companies and sector law

Information collected from Function Heads and their team on various dates during the

Requirements Analysis in Jan 2003, through meetings and discussions at various locations.Discussions with user departments like Services, Generation, T&C, Projects etc

Discussions with General Managers of new companies.

Validation of requirements specified in the tender documents.

AS-IS Processes

Based on above and various Minutes of Meetings all the ‘AS-IS’ processes as understood were drawn.

TO-BE Processes

The current business scenario has limited application and usefulness and requirement analysis has to be




Ver.1.1 Final

Abbr. Detail

AP Accounts Payable

INV Invoice

CUR Currency

INT Invoice Type

SEQ Sequence

Amt Amount

DR Debit

CR Credit

LT Ledger Type

CUR Currency Code

INB Invoice Batch



RD.050 Business Requirements Scenarios Doc. Ref: RD.050

Ver 1.1 Final

8

1.1 Supplier Creation (AP001)

Process: Supplier Creation Business Function: Accounts Payable Date :May 30,2013

Mapping Team: ORAERP COM INC. Process Owner: Finance Team

Librarian: Priority (H, M, L): High Core (Y/N) : Yes

Process Number: AP001 Description: This process explains the process of creating supplier

Assumptions ADBC Company, Supplier master data is created at corporation level and the respective sites are created in each legal

entity/operating unit

Event Description:

This process is triggered when we want to purchase any material from the suppliers.

Number:AP.001 Type: Master Source Agent: Finance Team

Mechanisms: System Assisted

Process

ID # Description Type

Elementary

Business

FunctionResult

Agent Status

AP001.01 Check whether the supplier exists in the system

or not.

Internal – System

Assisted. Use PIN numberto be unique. Field

should be mandatory

Supplier Account Query and Check Finance

Team

Active

AP001.02 Inquire a Supplier record in the system with

appropriate information such as Name or

Number or etc.

Internal – System

Assisted

Supplier Account Result of

Supplier query

Finance

Team

Active

AP001.03 If the supplier is not defined, enter necessary

details such as Supplier name, supplier type,

Bank account etc

Internal – Manual Supplier/Employ

ee Account

Supplier details

entered

Finance

Team

Active

AP001.04 Supplier details created with automatic supplier

number.

Internal – System

Assisted

Supplier/Employ

ee Account

Record Created Finance

Team

Active

1.2 Creating Standard Invoice – With Purchase Order/ GRN (AP002)




Ver 1.1 Final

9

Process: Standard Invoice –With Purchase Order (PO) Business Function: Accounts Payable Date : June-2-2013


Librarian: Priority (H, M, L):High

Core (Y/N)Yes

Process Number: AP002 Description: This Process explains creation of standard invoice, which has approved purchase order/ Receipt.

Assumptions: In ORAERP COM INC. invoices are created at operating unit level and are either matched with the PO or receipt.

Event Description: This process is triggered when we receive the material from the supplier.

Number:AP.002 Type: Transaction Source Agent: Finance Team


Process


Elementary

Business Function Result Agent Status

AP002.01 Receive the Invoice from Supplier. Internal – Manual Standard Invoice –

With PO

Invoice is

available for

entering into thesystem.

Finance Team Active

AP002.02 Enter the Invoice transaction into the system. Internal – System

Assisted

Standard Invoice –With PO

Invoice available

for matching to

PO and receipt

Finance Team Active

AP002.04 If it is a foreign currency invoice, enter the

invoice amount in foreign currency. Systemshould be able to convert it into functional

currency automatically based on

corporate/user/spot rates.

Internal – System

Assisted

Standard Invoice –

With PO

Invoice entered

in the system

Finance Team Active

AP002.05 Invoice currency should be same as PO/GRNCurrency.

Internal – SystemAssisted


Invoice enteredin the system

Finance Team Active

AP002.06 Payment currency should be same as Invoice

currency.

Internal – System

Assisted


With PO

Invoice entered

in the system

Finance Team Active

AP002.07 Matching of the Invoice with PO and Receipt

based on 2-way/3-way/4-way. The matching

Internal – System

Assisted


Matched Invoice

with PO /

Finance Team Active




Ver 1.1 Final

10

Process


Elementary


will be based on the supplier. Receipt.

AP002.08 Validate the Invoice. System would validate

whether the invoice quantity and amount are

same as PO /GRN

Internal – System

Assisted


With PO

Invoice is

validated

Finance Team Active

AP002.09 If some information is needed for the invoice,

place a hold manually till receiving the

information.

Internal – System

Assisted


Hold placed

manually.

Finance Team Active

AP002.11 Create Accounting for the Invoice and transfer

the journal entries in detail to General Ledger.

Internal – System

Assisted


Accounting

entries Created.

Finance Team Active

1.3 Creating Standard Invoice – Without Purchase Order (AP003)

Process: Standard Invoice –Without Purchase

Order

Business Function: Accounts Payable Date : June-2-2013

Mapping Team: ADBC Company Process Owner: Finance Team

Librarian: Priority (H, M, L):High

Core (Y/N)Yes




Ver 1.1 Final

11

Process Number: AP003 Description: This Process explains creation of Standard Invoice, which does not have purchase order.

Assumptions: In ADCB supplier invoices are created at operating unit level and the invoice lines and distributions are created

manually.

Event Description: This process is triggered when the services are received/any expenses incurred



ProcessID # Description Type

ElementaryBusiness Function Result Agent Status

AP003.01 Receive the invoices from supplier or other

concerned department.

Internal – Manual Standard Invoice –Without PO

Invoice is

available for

recording intosystem

Finance Team Active

AP003.02 Record a Standard Invoice details into the

system with the correct expense account.

Internal – System Assisted Standard Invoice –

Without PO

Invoice

entered in the

system

Finance Team Active

AP003.03 If it is a foreign currency invoice, enter theinvoice amount in foreign currency. System

should be able to convert it into functional

currency automatically based on

corporate/user/spot rates.

Internal – System Assisted Standard Invoice –Without PO

Invoiceentered in the

system

Finance Team Active

AP003.04 Payment currency should be same as Invoicecurrency.

Internal – System Assisted Standard Invoice –With PO

Invoiceentered in the

system

Finance Team Active

AP003.05 Validate the Invoice in the System. Internal – System Assisted Standard Invoice –Without PO

Invoice isavailable for

approval

Finance Team Active

AP003.07 Create Accounting for the Invoice and transfer

the Journal Entries to General Ledger

Internal – System Assisted Standard Invoice –

Without PO

Accounting

entries

generated

Finance Team Active

AP003.10 System should allow defining distribution setsand assigning them to Supplier/Invoice.

Internal – System Assisted Distribution Sets DistributionSets defined

and assigned

Finance Team Active




Ver 1.1 Final

12




Ver 1.1 Final

13

1.4 Creating Prepayment Invoice (AP004)

Process: Prepayment Invoice Business Function: Accounts Payable Date : June-2-2013

Mapping Team : ADBC Company Process Owner: Finance Team

Librarian: Priority (H, M, L): High Core (Y/N)

Yes

Process Number: AP004 Description: This Process explains the creation of prepayments, which are treated as advance payment to suppliers/

employees.

Assumptions: ADBC pays advances to the suppliers and employees.

Event Description: This process is triggered when there are any advance payments to be made to the suppliers/ employees



Process


Elementary


AP004.01 Receive contractual agreement for making the

advance payment

Internal – Manual Advance Payment Prepayment

Invoice is

available for

recording intothe system.

Finance Team Active

AP004.02 Enter a Advance / Prepayment Invoice intothe system

Internal – System Assisted Advance Payment Prepaymentinvoice is

created.

Finance Team Active

AP004.03 Provide a Descriptive Flex field to capture PO,Reference details. The list should link to the

PO, If it is to be referred to PO.

Internal – System Assisted Advance Payment DFF data iscaptured.

Finance Team Active

AP004.04 Validate the Prepayment Invoice. Internal – System Assisted Advance Payment Prepayment isvalidated

Finance Team Active

AP004.05 Approve the Prepayment in the system Internal – System Assisted Advance Payment Prepayment isavailable for

Finance Team Active




Ver 1.1 Final

14

Process


Elementary


payment

AP004.06 Create Accounting for Prepayment Internal – System Assisted Advance Payment Prepayment

Liability

Clearing is

created.

Finance Team Active

AP004.07 Record a payment transaction into the System Internal – System Assisted Advance Payment Prepayment

Available for

application

Finance Team Active

AP004.08 Apply the prepayment upon receiving the

invoice from Vendor.

Internal – System Assisted Advance Payment Prepayment

Applied

Finance Team Active

AP004.09 Create the Accounting and transfer the entire

to General Ledger

Internal – System Assisted Prepayment Alert is sent Finance Team Active

1.5 Entering Credit Memo (AP005)

Process: Entering Credit Memo Business Function: Accounts Payable Date : June-2-2013


Librarian: Priority (H, M, L): High Core (Y/N)

Yes

Process Number: AP005 Description: This process explains entering Credit memo.

Assumptions: Standard invoice/material is returned to the supplier

Event Description: This process is triggered if any purchase returns are there.






Ver 1.1 Final

15

Process


Elementary


AP005.01 Receive details of Credit t note from the

supplier or the concerned department

Internal – Manual Entering Credit

Memo

Credit memo

is available for

recording intothe system

Finance Team Active

AP005.02 Create a Credit Note transaction into the

system with negative value and match to a PO

if there was a PO

Internal – System Assisted Entering Credit

Memo

Credit Memo is

created.

Finance Team Active

AP005.03 Validate the Credit Note in the system. Internal – System Assisted Entering Credit

Memo

Credit Memo

Validated

Finance Team Active

AP005.04 Approve the Credit Note in the system Internal – System Assisted Entering Credit

Memo

Credit note is

available for

refund/adjust

ment

Finance Team Active

AP005.05 Create Accounting and Transfer to GL Internal – System Assisted Entering Credit

Memo

Accounting is

created

Finance Team Active

1.6 Payment (AP006)

Process: Entering Payments Business Function: Accounts Payable Date : June-2-2013

Mapping Team: ADBC Company Process Owner: Finance Team

Librarian: Priority (H, M, L):

High

Core (Y/N)

Yes

Process Number: AP006 Description: This explains the processing of supplier/employee payments for making invoice payments.

Assumptions: ADBC makes payments in different types like cash, check, bank transfer, L/C

Event Description: This process is triggered when the invoices are to be paid






Ver 1.1 Final

16

Process


Elementary


AP009.01 Enter the payment details of the supplier like

payment amount, bank etc.

Internal – System Assisted Payment Payment

voucher iscreated

Finance Team Active

AP009.02 System should be able to print Checks (Preprinted running stationery) on payment.

Internal – System Assisted Payment Paymentvoucher is

created

Finance Team Active

AP009.03 ADBC does payment by Check Payments

mostly and cash payments very rarely.

Internal – System Assisted Payment Payment

voucher iscreated

Finance Team Active

AP009.04 Payment currency should be same as Invoice

currency.

Internal – System Assisted Standard Invoice –With PO

Invoice

entered in the

system

Finance Team Active

AP009.05 Create accounting and Transfer to GL. It

updates the Bank Accounts and Realized

Gain/Loss

Internal – System Assisted Payment Accounting is

created.

Finance Team Active

AP009.06 System should allow users to void/cancel a

payment.

Internal – System Assisted Payment Payment is

canceled/void.

Finance Team Active

AP009.07 System should print remittance advice onpayment.

Internal – System Assisted Payment Remittanceadvice is

printed.

Finance Team Active

2. BUSINESS PROCESS DIAGRAM




Ver 1.1 Final

17

StartReceive the Invoice from Supplier

Match the Invoice Information with GRN

Approve the Invoice

Create Accounting & Run Transfer to GL

Program

Run Mass Addition Program to Populate

Asset Information to FA Module

2.1 Invoice Process for Asset

Creation:




Ver 1.1 Final

18

2.2 Invoice Payment Process:




Ver 1.1 Final

19

Payment

Select Invoice for Payment

Generate Payments

Match Payments to invoices

Void Payments

Payment Delivery Report

Cheques

Payments to

voided

(B) Actions

Payments

Approved?

Correct and

ReapproveNO

YES

rd050 account payables

Documents