R12 ACCOUNTS PAYABLES

R12 NEW AND ENHANCED FEATURES ACCOUNTS PAYABLE:

1. Suppliers
2. Invoice
3. Enhanced Line Level Approval
4. AP/AR Netting
5. Bank and Bank Accounts

1.Suppliers:

• Supplier becomes as TCA Party.
• Suppliers Sites as TCA Party Site for each distinct address.  
• Contacts for each supplier/address , it means Single supplier address and contact can be leveraged by multiple sites, for each OU
• A single change to an address can be seen instantly by all OUs.  
• No longer need to manually ‘push’ updates across OUs. This can be best understood by the figure below.

2.Invoice:

• Invoice Lines as a new additional line accommodated in Invoice data model 

• Because of introduction of invoice line there is significant improvement of data flow with in other oracle modules like  

            a.Fixed Asset - Asset Tracking 
            b.Business Tax - Tax line
            c.Payment - Payment Sub Ledger
            d.Accounting - Accounting

 

• Invoice Lines supports the representation of the goods or services as well as tax, freight, and other charges as lines with distributions tied to each line.         
• One can assign separate Distribution sets at invoice line level

Fixed Asset - Asset Tracking

Enhanced Assets tracking in AP

Item Description

Manufacturer

Model

Serial Number

Warranty Number

Enhanced Mass Additions

Asset Book

            Asset Category

E-Business Tax - Tax line 

• A new module eBusinessTax determines tax based on facts about each transaction, this is reason why Oracle has introduced additional line information at invoice level

3.Enhanced Invoice Approval Includes Line Level Approval:

•          With the introduction of Invoice Lines, users are able to further extend their approval policy granularity in Oracle Approvals Management for individual lines of an invoice.

4.AP/AR Netting:

 

• When a trading partner is both a customer and a supplier, you may choose to offset open receivables’ against open payables’ items.
• A selection program automatically pulls information from Oracle Receivables and Oracle Payables
• While pulling Considers the discounts, late fees, and withholding taxes

5.Bank and Bank Details: 

Internal Bank Accounts

 

• Bank and Branch become part of TCA Parties. 
•  Internal Bank Account in Cash Management which is owned by a Legal Entity. Here the Operating units have granted usage rights.

• Supplier Bank Accounts

• Suppliers, Banks and Branches are defined as Parties in TCA. 
•  Supplier (party’s) payment information and all payment instruments (Bank Accounts, Credit Cards) moved into Oracle Payments. 

Typical Bank Model in R12