Oracle Payables System Setup

Oracle Payables System Setup

Payables System Setup window is used to define supplier control options and defaults. Although you need to define these options and defaults only once, you can update most of them at any time to change controls and defaults for suppliers and future transactions.

Image Oracle Payables System Setup

Supplier


Supplier Number Entry. Select an option to enter your supplier numbers manually or let Payables automatically generate sequential supplier numbers for you. You can change the number entry method at any time.

Supplier Number Type. Select the type of supplier number you want Payables to use for supplier number entry. Options include Alphanumeric or Numeric

Next Automatic Number. Enter the starting value you want the system to use for generating unique sequential supplier numbers

Control

Invoice Match Option. Select Purchase Order or Receipts to indicate how you want to match most invoices. Defaulting is in the following order, but can be overridden at any level: Payables System Setup > supplier > supplier site > purchase order shipment

Hold Unmatched Invoices. If you enable this option for a supplier site, Payables applies a Matching Required hold to an invoice if it has Item type distributions that are not matched to either a purchase order or receipt

Payment

Invoice Currency. Select the currency to use as a default for new suppliers that you enter.

Pay Group.
Select the pay group to use as a default for new suppliers that you enter.

Terms Date Basis. Select the date that Payables uses as the payment terms start date when Payables calculates the due and discount dates for invoice scheduled payments

Pay Date Basis. Select the date that Payables uses to select invoices for payment.

Payment Terms. Select the terms that Payables uses to schedule payments for an invoice. This value defaults to new suppliers that you enter.

Always Take Discount. Enable this option to have Payables always take an available discount for a supplier, regardless of when you pay the invoice. Your selection defaults to new suppliers that you enter.

Create Interest Invoices. Enable this option to have Payables calculate interest for the supplier's overdue invoices and create corresponding interest invoices when you pay the overdue invoices.

AP Payment Methods

Payment Method:


A funds disbursement payment method is a medium by which the first party payer, or deploying company, makes a payment to a third-party payee, such as a supplier. You can use a payment method to pay one or more suppliers. Oracle Payments supports several payment methods for funds disbursement, including the following:

• Check
• Electronic
• wire
• Clearing

Check:

You can pay with a manual payment, a Quick payment, or in a payment batch.


Electornic:

Electronic An electronic funds transfer to the bank of a supplier. You create electronic payments either through the e- Commerce Gateway, or by delivering a payment batch file to your bank. For both methods, Payables creates a file during payment batch creation. If you are using the e-Commerce Gateway to create the file of payments, an EDI translator is required to create the EDI Formatted file prior to delivering it to your bank. For electronic funds transfers, the file is formatted and delivered to your ap.out directory for delivery to your bank.

Wire:

Wire Funds transfer initiated be contacting the bank and requesting wire payment to the bank of a suplier.A payment method where you pay invoices outside of Payables by notifying your bank that you want to debit your account and credit your supplier’s account with appropriate funds. You provide your bank with your supplier’s bank information, and your bank sends you confirmation of your transaction. Your supplier’s bank sends your supplier confirmation of the payment. You then record the transaction manually.

Clearing:

Clearing Payment for invoices transferred from another entity within the company without creating a payment document. Payment method you use to account for intercompany expenses when you do not actually disburse funds through banks. You do not generate a payment document with the Clearing payment method. When you enter the invoice, you enter Clearing for the payment method. You can record a Clearing payment using a Manual type payment only.