1.What are the mandatory steps for Payable module before entering transactions?
Create application user sign–ons and passwords.
Define your chart of accounts.
Define your accounting period types and accounting calendar periods.
Define a set of books. Specify a set of books name and assign it a calendar, functional currency, and a chart of accounts structure.
After choosing your set of books, use the Application Developer responsibility to set the GL Set of Books ID profile option to Updateable.
After choosing your set of books, use the System Administrator responsibility to set the GL Set of books Name profile option. If you are not using multiple organizations feature, set the option for the Oracle Payables application. If you are using multiple organizations feature, set the option for each unique combination of organization and responsibility.
Define Payables Lookups.
Define Purchasing Lookups.
Enter locations.
Enter employees. If you have Oracle Human Resources installed, use the People window. See: Entering a New Person (Managing People Using Oracle HRMS). If you do not have Oracle Human Resources installed, use the Enter Person window.
If Oracle Inventory or Oracle Purchasing is installed, you must define at least one Inventory Organization before defining Financials Options.
Define payment programs.
Install or upgrade Payables.
Select your primary set of books.
Use the System Administrator responsibility to assign your set of books to a responsibility.
Define Financials options.
Define Payables options.
Define your payment terms.
If you plan to use automatic withholding tax, define Tax Authority type suppliers. You must do this before defining tax codes and tax groups.
Define bank accounts.
Define Suppliers.
Open your Payables accounting period.
Set up Print Styles and Drivers for the Supplier Mailing Labels Report.
2.What is ‘pay date basis’? Explain the different options available in it.
Pay Date Basis. The Pay Date Basis default for each new supplier you enter. The Pay Date Basis for a supplier defaults to the new supplier sites you enter for the supplier. You can override the default for each supplier and supplier site.
Discount. Payables selects invoices for payment based on the scheduled payment discount date.
Due. Payables selects invoices for payment based on the scheduled payment due date, regardless of any available discounts.
3.How to record a refund from a one-time supplier? Explain accounting entries also.
By entering the Debit Memo we can record the recover from supplier, The one time supplier is only for the information on suppliers not for the controlling.
The accounting entries for the same as follows
Accounting entries for enter invoice at Approval:-
Charge A/c….Dr XXX
To Liability A/c XXX
Accounting entries for enter invoice at Payment:-
Liability A/c….Dr XXX
To Cash Clearing A/c XXX
In this case if we want refund from the supplier to raise the Debit memo against the Goods or Services.
Accounting entries for Debit Memo at Approval:-
Liability A/c….Dr XXX
To Charge A/c XXX
Accounting entries for enter invoice at Payment:-
Cash Clearing A/c…. Dr XXX
To Liability A/c XXX
