R12 - AP Auto Invoice Creation

Hi friends,

Today we will see how to allow system to create invoice automatically upon reciept.

1. By Using Self Billing :

By Using selg Billing tab in supplier form, we can create standard invoice upon receipt.

Navigation : Payable responsibility --> Suppliers --> Entry

Query with supplier name . Ex : Supplier Name : Consolidated Supplies

After query with supplier, clisk on purchasing  --> Self Billing Tab

Select Pay On = Reciept  --  This means upon completion of reciepts , system automatically create the STANDARD Invoice.

System will create standard invoice automaticaly and invoice number generation is depends on the value entered in Profile :  PO: ERS Invoice Number Prefix

2. By Using  "Create Debit Memo from RTS Transaction" :

By using this option we can create DEBIT Invoice automatically after returning the material to supplier.

Step1 : Create PO against supplier : Consolidated Supplies and approve the PO

PO Number : 6047  --  Quantity = 9

Step 2 : Reciepts

Navigation : Purchasing responsibility --> recieving --> Reciepts

Query with PO Number and create reciept.

Receipt Nimber : 8462

Step 3 : Return The material . Qty : 4

Navigation : Purchasing responsibility --> recieving --> Return 

Query With receipt = 8462

Enter Qty = 4 and Return To = Supplier  and save -- We are return 4 qty of material to supplier.

Now, Use below Query to find Invoices :

SELECT ph.segment1 PO_NUMBER,ai.invoice_num,
,ai.sourceai.invoice_type_lookup_code,ai.description,ai.invoice_amount,rh.receipt_numFROM
po_headers_all ph ,po_lines_all pl,po_distributions_all pd,rcv_shipment_headers rh,rcv_shipment_lines rl,ap_invoices_all ai,ap_invoice_distributions_all aidWHERE ai.invoice_id = aid.invoice_idAND aid.po_distribution_id = pd.po_distribution_idAND pd.po_line_id = pl.po_line_idAND pl.po_header_id = ph.po_header_idAND rl.po_header_id = ph.po_header_idAND rh.shipment_header_id = rl.shipment_header_idAND rl.po_distribution_id = pd.po_distribution_idAND ph.segment1 = '6047';

R12 - Merging Suppliers

Use the Supplier Merge program to maintain your supplier records. You can use it to merge duplicate suppliers into a single, consolidated supplier and to merge transactions within the same supplier from one supplier site to a different supplier site. You can choose to merge all transactions for a supplier into a new supplier, or you can just choose to merge unpaid invoices.

Merging suppliers is an irreversible action. You cannot reverse the merge once it has completed. Before you initiate the merge program, you should be sure that the action you want to take is final.

Refer the below screen schot. supplier XXDell is having 2 supplier sire Marina and Sam Francisco. Now we are going to merge Marina supplier site.

Run the Supplier Merge Program :

Navigation : Payables responsibility --> Suppliers --> Suppliers Merge

Select the From and To Information and Click on Merge Button. Once you click on Merge, " Supplier Merge Program " will run in back end.  Once Concurrent program " Supplier Merge Program " was ran succesfully verify the supplier information. Now you can find only one site " San Francisco ".

While merging, we need to decide the effect the merge on existing purchase orders and invoices. 

•         For purchase orders, we need indicate whether we want all or none of the existing purchase orders to be updated with the new supplier/site names by checking or unchecking the PO Check Box.

•         For invoices, we can indicate whether we want all, only unpaid, or none of the invoices to be updated with the new supplier/site names.

 

Supplier Level Vs Supplier Site Level Entries

Refer the above diagram and notice that information on the Organization, Contact Directory, Business Classification, Products and Services, Surveys, Receiving, and Payment Details pages is entered only at the supplier level.

Information on the Address Book page is entered only at the supplier site level.

If Multiple Organization Support feature has been enabled, the Accounting page is also entered only at the site level.

Flow Of Default Values in Payables

•  Defaults set at higher levels flow down to lower levels where you can override them. 


• Defaults reduce data entry by providing default values

Note : Changes to default values affect only new records, not existing records.  For example, if payment terms in the Payables Options window are reset to Net 30 from Net 45, new suppliers will have a default of Net 30.  Existing suppliers will have terms of Net 45.

Updating Supplier and Supplier Site Defaults :

For example, if you change the Pay Group for a supplier site, the new Pay Group will default to new invoices you enter, but the change will not affect existing invoices. Also, if you change a supplier value that defaults to supplier sites, the change will only affect new supplier sites you create, but the change will not affect existing supplier sites. Therefore, the change will not affect documents you subsequently create for existing supplier sites. If you want a change to affect documents you enter or create for an existing supplier site, be sure to make the changes at the supplier site level.

Flow Of Default Values in Purchasing

R12 - Supplier Creation - Part : 2

Supplier Banking Details Page :

Use Banking Details page to define the bank accounts used for making payments to suppliers.

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.

Click On Banking Details Page -->

 

Click on Create to create Bank and Bank Branches
 

 

Purchasing Page :

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 AutoInvoice Program.

FOB

Free on Board (FOB) indicates the point at which ownership of the goods and services, as well as the cost of any damage or loss, transfers from the supplier to you.

Freight Terms

Freight Terms indicate whether you or your supplier pays the freight charges for the goods you ordered.

Receiving Page :

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.

Payment details Page :

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.

Invoice Management Page :

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. 

R12 - Supplier Creation - Part : 1

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.

Supplier Creation :

-------------------------

To create suppliers, user payables responsibility.

Navigation : Suppliers --> Entry

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

Entering Basic Supplier Information

Supplier Type

Wecan create Standard or Employee suppliers. Use Standard Supplier for companies and individuals from whom we purchase goods and services. Use Employee suppliers for employees for whom we reimburse expense reports.

Name

Names must be unique and can be updated if necessary.

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. 

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 Addess Book  --> Click on Create to create supplier sites. 

After entering required information click on continure and 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.

Create Contact information for newly created site.

Click on contact directory page

Click on Create and enter the contact details.

Click on Add another row and select ewly created site name in address name field and click on apply.

Products and Services Page :

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 iSupplier Portal.