single check to multiple supplier site invoices
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Single Check to Multiple Supplier Site InvoicesTRANSCRIPT
Business Scenario - AP 1000
Module – Payables
Version – 1.0
Author : Ivruksha
Email : [email protected]
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Hi All,
This is my sincere attempt to share the knowledge and experience that I have gained by working on Oracle Applications till date. As of date, I can only look back and see that I have learned handful of stuff, mastered none and there's much more to learn ….. However I do realize that mastering every aspect of everything is an impossible task, hence decided to share the knowledge I have gained till date as a reference to my fellow professionals and aspiring professionals, so that there is no need to reinvent the wheel …over and over again …
I have began writing blogs, short presentations and whitepapers which seems to have been useful to many, however most of them who have read those and often come back and stated, we are very less keen in knowing how the product works and we wanted to know how a real time business scenario can be met through existing functionalities as a straight forward solution or Workaround ….
It is very difficult to understand a solution design without any knowledge on the Product and its features / functionalities. With my limited understanding of the product, I have decided to fancy whether I can do a documentation focusing on a business scenario (real time) which is faced by an client and design a solution, and demonstrate it for others ….
As I mentioned earlier, my career in Oracle Applications is very limited, hence I have not yet faced with complex business scenarios which you would have faced in your experience, hence I request each and every one of you to share the Business Scenario which you felt was difficult to handle or thought off as not possible in oracle applications. I would take those scenarios as a challenge and design solution for it …..
Also I would welcome other fellow professionals to share the unique solutions if they have designed one, so that it can be shared to a larger pool of professionals through my portal.
Please do remember that there is no monetary benefit for me in performing this exercise what so ever, I am doing this voluntarily ……
Regards,
Ivruksha
www.ivruksha.com
Business Scenario is this ……Brief Requirement:
Company ABC Private Limited who has multiple places of business is dealing with one supplier XYZ Corporation who supplies goods and services to the company at various locations. Even though individual invoices are raised by the Supplier at various locations, they seek payment to be done for all the invoices through a single Check.
Detailed Requirement:
Company “ABC Private Limited” has one Operating Unit called “Vision Operations” which is setup in the city Chennai which does transactions for the state Tamil Nadu. This “Vision Operations” has three different Inventory Organizations / Warehouses in which Inventory are being stored… the Locations are “Madurai”, “Trichy” and “Coimbatore” which is located in Tamil Nadu.
Vendor XYZ Corporate has his place of business all over the State Tamil Nadu. Company “ABC Private Limited” procures from the Vendor “XYZ Corporation” for the three locations. The goods are delivered by the vendor to the Warehouse directly. The Invoices are raised by the supplier individually for each location and sent to “ABC Private Limited” at Chennai City.
Supplier “XYZ Corporation” wants the payment to be done for all the Invoices together as a single Check to its Madurai Location.
Note: Chennai is a City in Tamil Nadu and Tamil Nadu is a State in Southern part of India. Madurai, Trichy and Coimbatore are other places located within the state Tamil Nadu
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Sample Data for the Business Scenario:
Supplier “XYZ Corporation” from location “Madurai”, “Trichy” and “Coimbatore” has presented three Invoices to “ABC Private Limited”, the Invoice Numbers are:
XYZINV01 ( For Supplier Site “Madurai”) for 1000 Rs
XYZINV02 ( For Supplier Site “Trichy”) for 2000 Rs
XYZINV03 ( For Supplier Site “Coimbatore”) for 3000 Rs
These Invoices are recorded in the system against respective Supplier sites.
Now the payment needs to be done by “ABC Private Limited” to the above three invoices through a single check for the supplier site “Madurai” amounting to 6000 Rs ( i.e. 1000 + 2000 + 3000)
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Solution Design:
Following question(s) needs to be asked for understanding the requirement in full, before jumping in to the solution design:
Question:
Does the supplier always wanted to route the payments to the supplier site in “Madurai” or would the preference change every time around.
Reason for asking:
If the payment would always be made to a single supplier site, then we can disable other two sites and book invoices in Payables Module under a single site for “Madurai” site only.
Assumption:
Now I make an assumption, that the preference of supplier site for making payment is not fixed, it might change at any point of time. Hence we should continue to book Invoices against individual supplier site.
Conclusion:
Make payment by Check outside of Oracle Payables and by using the “Manual” payment method record the same in Oracle Payables which would be an ideal solution for this case.
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What is Manual Payment ?
Before jumping in to the Demonstration section, one must understand the conceptual knowledge of the product feature “Manual” payment.
Manual payment is a seeded payment type provided by Oracle Payables. It is meant for payments that happen outside Oracle Payables, which needs to be recorded in the System.
A Manual payment will not generate a Payment instruction from the system, since it is to be only used for a payment that has happened outside oracle. It can also pay Multiple “Pay Alone” Invoices using a single payment.
A Manual payment can be done only from Payment Workbench and not from Payment Process Request.
There is no impact on the way Accounting entries are done if you use the Manual Payment, it generates accounting entries in a normal way for a payment.
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Demonstration
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3 Invoices for the same supplier has been created in the system that pertains to 3 different sites. Payment needs to be done to all 3 invoices using a single check.
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Switch Responsibility to Payables
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Navigate to Payments > Entry > Payments
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The Default payment type is QUICK, which needs to be changed to MANUAL
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Payment Type is Changed to MANUAL
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After selecting the Supplier, system would ask which site needs to be selected for making payment, for our scenario the site to which payment needs to be made is Madurai, hence select Madurai
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Supplier and Supplier Site (i.e. Madurai) has been selected
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Now, Select other mandatory information as shown below … and click on the “Enter/Adjust Invoices” button
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Now, to select invoices that are to be paid, click on the LOV
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System displays all invoices that are eligible for payment, of which select the Invoice for which the supplier site is MADURAI i.e. the one which we have used at the header level earlier…
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Invoice is Selected …. Now click on the next/ new row in order to select the next Invoice
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Now, select the remaining invoice one by one and select OK button
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System displays a NOTE stating that you are selecting an Invoice which has a different supplier site that of Payment supplier site … Click OK and continue …
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Select the remaining invoice and click OK button
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System displays a NOTE stating that you are selecting an Invoice which has a different supplier site that of Payment supplier site … Click OK and continue …
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Save your Changes. Now you can see all three invoices has been paid by a single Check in Oracle Payables
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Navigate to Invoices > Entry > Invoices
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Query for the Invoices which we have just paid ….
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In the Scheduled Payments TAB, you can see that there is no Amount Remaining to be paid, hence the invoice is paid in full
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In the View Payments TAB, you can see that the document Number is same for all three Invoices that belong to different supplier sites …
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In the Scheduled Payments TAB, you can see that there is no Amount Remaining to be paid, hence the invoice is paid in full
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In the View Payments TAB, you can see that the document Number is same for all three Invoices that belong to different supplier sites …
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In the Scheduled Payments TAB, you can see that there is no Amount Remaining to be paid, hence the invoice is paid in full
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In the View Payments TAB, you can see that the document Number is same for all three Invoices that belong to different supplier sites …
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Whenever you save a payment, system would generate Format payment instructions which is for printing the check from oracle payables either in blank paper or in a pre printed stationery …When we use Manual payment, there is no such programs that are run by the system, as manual payment is not allowed to print check through the system, since this payment type is to be used only for a payment that is already made outside oracle payables.
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