01.What are different status in payment batch ?
ANS - Status (Payment Batches window only). Payables displays the status of the payment batch. Payables displays the status in red if there is an error, for example, if the concurrent manager goes down during a process.
Suggestion: If you are in the Payment batches window and you want to monitor the status of a payment batch that is, choose Refresh Status from the Tools menu.
1. Building. Payables is determining which invoices will be paid by each payment document.
2. Built. Payables has determined which invoices will be paid with each payment document. You can now review the Preliminary Payment Register, Modify the Payment Batch, or Format the Payment Batch.
3. Cancelled. You have cancelled the payment batch.
4. Cancelling. Payables is cancelling the payment batch.
5. Confirmed. You have confirmed the payment batch.
6. Confirming. Payables is either confirming or partially confirming the payment batch based on the action you selected in the Confirm Payment Batch window.
7. Formatted. Payables has completed formatting your payments and has created the output file that you can use to print checks or, if you are making electronic payments, you can deliver the output file to the e-Commerce Gateway or your bank for processing.
8. Formatting. Payables has created the output file that you can use to print checks or, if you are making EFT payments, you can deliver the output file to your bank for processing.
9. Modified. Payables has modified the payment batch based on the modifications you made in the Modify Payment Batch window.
10. Modifying. Payables is modifying the payment batch based on the modifications you made in the Modify Payment Batch window.
11. Rebuilding. You have modified a payment batch, and Payables is rebuilding the modified payment batch.
12. Restarting. You have confirmed a partial payment batch and have chosen Restart Payment Batch in the Confirm Payment Batch window. Payables is rebuilding and reformatting the remaining portion of the payment batch.
13. Selected. Payables has selected invoices that match the payment batch criteria you entered.
14. Selecting. Payables is selecting invoices that match the payment batch criteria you entered.
15. Unstarted. The payment batch is unstarted.
2. Explain The concept of Automatic Offset ?
If you enter invoices for expenses or asset purchases for more than one balancing segment, you might want to use Automatic Offsets to keep your Payables transaction accounting entries balanced.
If you do not use Automatic Offsets, Payables creates a single liability accounting entry for invoice transactions (if you use accrual basis accounting) and a single cash type accounting entry for payment transactions.
When you use Automatic Offsets, Payables automatically creates balancing accounting entries for your transactions. The GL account that each of the offsetting accounting entry is charged to depend on which method you use, balancing or Account:
⦁ Balancing: Payables builds the offsetting GL account by taking the balancing segment (usually the cost center code) from the invoice distribution and overlaying it onto the appropriate default GL account, for example the Liability account from the supplier site.
⦁ Account. The Account method takes the opposite approach with one segment (the designated account segment) being retained from the default GL account and all other segments being retained from the invoice distribution.
Although Payables builds the GL account to which amounts are charged differently depending on the method you use, in either case Payables automatically allocates the amount across the following accounting entries for an invoice:
⦁ Withholding Tax (if you apply the withheld amount at Approval time)
Payables also allocates the following entries for a payment:
⦁ Cash (if you use a pooled bank account)
⦁ Cash Clearing (if you use a pooled bank account, and if you account for payments at clearing time)
⦁ Discount
⦁ Exchange Gain/Loss
⦁ Future Dated Payment
⦁ Rounding
⦁ Withholding Tax (if you apply the withheld amount at Payment time)
⦁ Bank Charges
⦁ Bank Errors
Automatic Offsets affects only accounts listed above. For accounts other than these, for example, Interest Liability, you must make manual journal entries in your general ledger to keep the entries balanced at the balancing segment level.
Example
The following diagram illustrates how Payables builds a GL account on a liability distribution using the two different methods:
3.What is an ERS? How is it setup?
Payment on Receipt enables you to automatically create standard, unapproved invoices for payment of goods based on receipt transactions. Invoices are created using a combination of receipt and purchase order information, eliminating duplicate manual data entry and ensuring accurate and timely data processing. Payment on Receipt is also known as Evaluated Receipt Settlement (ERS) and Self Billing.
You can automatically create invoices with multiple items and distribution lines, and include tax.
You define which supplier sites participate in Payment on Receipt and enforce matching rules to ensure the proper payments are made to the suppliers.
Amount - Payment on Receipt builds invoices with the following information: Determined by multiplying the Quantity received by the Purchase Order Item Unit Price.
Payment Terms - Defaulted from the purchase order payment terms or from the supplier site payment terms, depending on your Oracle Public Sector Payables setup.
Tax - Based on Tax Codes on each purchase order shipment, or the default tax hierarchy in Payables.
If the purchase order currency and the supplier site Payment Currency (in the Supplier Sites window) are not fixed–rate currencies (for example, not euro–related currencies), Payment on Receipt builds the invoices this way, regardless of the supplier site Invoice Currency:
Invoice Currency - Defaulted from the purchase order Currency.
Payment Currency - Defaulted from the purchase order Currency.
If the purchase order currency and the supplier site Payment Currency are fixed–rate currencies (for example, euro–related currencies), Payment on Receipt builds the invoices this way, regardless of the supplier site Invoice Currency:
Invoice Currency - Defaulted from the purchase order Currency.
Payment Currency - Defaulted from the supplier site Payment Currency. For example, if the purchase order Currency is francs and the supplier site Payment Currency is the euro, the Payment Currency on the invoice is the euro.
Defaulted from the supplier site Invoice Currency if no supplier site Payment Currency is defined and the supplier site Invoice Currency is a fixed–rate currency.
Defaulted from the purchase order Currency if the supplier site Invoice Currency is not a fixed–rate currency. If the Alternate Pay Site is populated for the Supplier Site used on the Purchase Order, the invoice created is for the Alternate Pay Site, otherwise the Supplier Site on the Purchase Order is used. The Supplier Site used for the invoice must be defined as a Pay Site.
4. Explain the Withholding Tax Accounting.
5.What is the format of Interest Invoice number?
Ans. Interest Invoice format no. is splited into three segments they are Invoice No on which interest is calculated, INT and no. of times paid the Example as follows
Invoice No. 113 – INT- 1
Description 113 is stands for the invoice No. On which interest is paid or calculated INT – Is the symbol for Interest 1 is the suffix attached to the interest invoice depends on the No. Of times interest paid on a particular Invoice e.g. if you paid interest for second time then the invoice will generate with suffix 2
6. What are different types of special calendar?
There are four special calendars they are
1. Recurring Invoice
2. Withholding Tax
3. Payment Terms
4. Key Indicator
7.How the terms date will be calculated for recurring invoices?
When Payables creates recurring invoices, the invoice date is the first date of the period in which the recurring invoice is created. The Terms Date depends on the Terms Date Basis setting at the supplier site, but is calculated differently than for regular invoices:
⦁ If the Terms Date Basis is set to System Date, then the Terms Date is the same date that the recurring invoice was created.
⦁ If the Terms Date Basis is set to anything else, then the Terms Date is the invoice date, which is the first day of the period in which the recurring invoice is created.
8.What is the default invoice date for recurring invoices?
Every month first date will be the default date for recurring invoice.
9.How to define foreign currency recurring Invoice Template ? What are the additional considerations?
Optionally change the invoice currency, which is your functional currency unless you have a supplier site default. If you enter a foreign currency, enter exchange rate information when you create invoices based on the template.
10. What are the prerequisites for auto creation of Debit Memo of RTS transactions?
Check the check box “Create Debit memo for RTS transactions” under purchasing Tab page in Supplier site. And in purchase module in “Returns Form” Check the Check Box Create debit memo.
11.What is the number format of invoice generated based on ERS? Name the profile option related to this.
The Name of the Profile is PO: ERS invoice Number Prefix.
The number format of invoice generated are,
⦁ Default Profile name.
⦁ Depends upon the Invoice summery level (Purchasing Tab page in Supplier site) the number will vary either Receipt No. or Packing slip No. Or Supplier No.
⦁ System generated No.
12.What reports will be shown if you run concurrent program for Expense report?
⦁ Payables Invoice Import Audit Report
⦁ Payables Invoice Import Exceptions Report
⦁ Payables Invoice Import Prepayments Applied Report
13.What is the relevance of Withholding tax group?
Use this window to define withholding tax groups that include multiple Withholding Tax type tax codes. You can assign the same tax code to more than one group. When you assign a withholding tax group to an invoice or distribution, Payables calculates invoice withholding tax based on every tax code in the withholding tax group. For example, you assign a withholding tax group to an invoice or distribution if you need to withhold taxes at both the local and country level, each withheld at different rates and remitted to different tax authorities. You define and assign to the invoice or distribution a Withholding Tax Group that includes both taxes.
You rank all of the tax codes in a withholding tax group when you define the group. When you enter an invoice and enter a withholding tax group, Payables calculates the taxes in order of rank. Lower ranked taxes are applied to the amount of the invoice or distribution amount less the previous withholding tax amounts.
14. What are different rate structure for Withholding Tax ?
Period Limit. After you pay a certain amount for a withholding tax in a period, Payables does withhold further taxes. For example, for each special calendar period, Payables withholds no more than $10,000.
If you select this value you must enter values for the Period Limit, and Calendar fields. You cannot enter values for the Amount Basis and Period Basis fields.
Flat Rate. The withholding tax has no amount or period limits. If you select this value you cannot enter a value in the Amount Basis, Period Basis, and Period Limit fields.
Amount Ranges. The tax rate depends on how much you have already paid during a time period. Base the paid amount on either the gross amount of total paid invoice amounts, or on the total amount of tax withheld. The time period can be per withholding tax calendar period or per invoice. For example, define a tax that for each invoice that withholds at a rate of 10% until you have paid $1000 in tax, after which it withholds at 15%. If you select this value you must enter values for the Amount Basis and Period Basis fields. If you select Period as your Period Basis, you must also select a Calendar. You cannot enter a value for Period Limit.
15. What is the relevance of ‘Period Basis’ field in withholding tax details from and when it can be chosen?
Period Basis. To enter amount ranges in the Tax Rates region, select Amount Ranges as the Rate Type, and specify an Amount Basis and a Period Basis.
⦁ Invoice. Select Invoice if you want to apply an amount range to each invoice.
⦁ Period. Select Period to apply an amount range to a Withholding Tax period. If you enter a value here, then specify the name of the special calendar that uses the periods you want to use.
16. What are the Pre – requisites for Withholding Tax Invoices?
⦁ Tax authority to defined as supplier
⦁ Tax codes & Tax groups to be defined
⦁ Special calendar to be defined
⦁ Enable the Check box Use withholding Tax under Withholding Tab page in payables options.
17. How to view supplier Balance?
(N) – Invoices – Inquiry – Invoices, here you can find out balance of supplier (B) “Calculate Balance Owed” by providing supplier information at Header.
OR
Go to the Invoice work bench and go to the Menu - View - Find the screen will be opened as find invoice in that give your supplier name and site and click on the “Calculate Balance Owed”
18.What is the format of Withholding Tax Invoice Number?
Withholding Tax – System Generated No. – Invoice distribution Line No.
19. What are there any payable options related to expense Report.
⦁ Default Template
⦁ Payment Terms
⦁ Pay Group
⦁ Payment priority
⦁ Apply advance
⦁ Automatically Create employee as supplier
⦁ Hold unmatched Expense Report
13. Third party balances report
14. Reconcile Posted Journal entries
15. Review the Unposted items report
16. Review the account analysis report
17. Open the Receivables nest period
18. Run reports for tax reporting purpose (Optional )
Payables
01. Complete all transactions for the period being closed
02. Run the payables approval process for all invoices
03. Review and resolve amounts to the General Ledger
04. Reconcile the Payment to Bank Statement Activity for the period
05. Transfer all Approved invoices and payments to the General Ledger
06. Review the Payables to General Ledger posting Process after completion
07. Submit the unaccounted Transaction sweep program
08. Close the current payables period
09. Accrue uninvoiced receipts
10. Reconcile payables activity for the period
11. Run mass additions transfer to Assets
12. Open the next payables period
Order Management
01. Complete all transactions for the period being closed
02. Ensure all interfaces are completed for the period (Optional)
03. Review the open Order and Check the Workflow status
04. Review hold Orders
05. Review Customer Acceptances (Optional)
06. Review Discounts
07. Review Backorders
08. Review and correct Order Exceptions
09. Reconcile to Inventory
10. Reconcile to Oracle Receivables
11. Run Standard Period End Reports
General Ledger
01. Ensure the next accounting period status is set to future entry
02. Complete Oracle Sub Ledger interfaces to General Ledger
03. Upload Journal from ADI to General Ledger (Optional)
04. Complete Non Oracle Sub Ledger Interfaces to Oracle General Ledger (Optional)
05. Generate Reversal Journals (Optional)
06. Generate Recurring Journals (Optional)
07. Generate Mass Allocation Journals (Optional)
08. Review and Verify Journal Details of Unposted Journal Entries
09. Post All Journal Batches
10. Run the Period close Exceptions Report
11. Run GL Trial Balances Preliminary Financial Statement Generator
12. Revalue Balances (Optional)
13. Translate Balances (Optional)
14. Consolidate Balances (Optional)
15. Reconcile Intercompany (Optional)
16. Review & Correct Balances
17. Enter Adjustments / Accruals and Post
18. Perform Final Adjustments
19. Close the Current General Ledger Period
20. Open the Next General ledger Period
21. Run Financial Reports for the Closed period
22. Run Reports for Tax Reporting Purposes (Optional)
23. Perform Encumbrance year End Procedures (Optional)
