Oracle Payables R12 New features

Agenda Accounts Payables R12 New Features Preview Payments Business Process Review

What’s new in R12 Payables? Multi-Org Access Control (MOAC) Representation of Suppliers in Trading Community Architecture Representation of Payables Banks, Branches and Bank Accounts in Trading Community Invoice Lines and Line level Approvals Disbursement Requests Accounts Payables/Receivables Netting

What’s new in R12 Payables? (Continued) Oracle Payments Payment Process enhancements Discount calculation enhancements Third party payments Support for Credit card security features Positive Pay File with additional parameters. Sub Ledger Accounting (SLA)

Multi-org Access control Multi-Org Access Control and Preferences allow users to enter invoices/batches of invoices for one operating unit, and then seamlessly enter invoices for another operating unit. Select invoices across operating units for payment processing within a single pay run. Setup is more manageable and gathering information and running concurrent programs are more efficient. Run the payment process across operating units from one responsibility

Multi-org Access control (Continued) Responsibilities are assigned a Security Profile “MO: Security Profile” which is a group of Operating Units. Invoices can be entered for multiple operating units from one responsibility.

Multi-org Access control (Continued) Payments can be made by selecting the invoices from multiple Operating Units.

Suppliers in TCA Accurately represent the relationships of Suppliers: For example: A supplier can also be a customer. A contact can be shared across Suppliers and customers. Bank accounts are modeled centrally: Bank Accounts are tied directly to a Supplier and shared if the trading partner is also an employee or customer.

Suppliers in TCA (Continued) In R11i Suppliers are defined in AP Supplier Contacts are duplicated for each Supplier Site In R12 Suppliers is created as TCA Party Supplier Site is created as TCA Party Site Contact is created as TCA Party (Person Type) Same Contact can be shared across Supplier and Supplier Sites. A relationship will be will be created between Contact Party and Supplier Party.

Suppliers in TCA (Continued) Oracle Fusion Middleware Trading Community Architecture ERP CRM 3rd Party Payables Purchasing -% Global Tax Payments Suppliers Geographies Party Information Cash Management Banks and Branches

Suppliers in TCA (Continued) Create Supplier > Create Address. Address can be shared across Supplier Sites.

Suppliers in TCA (Continued) Supplier Address Creation

Suppliers in TCA (Continued) The Site Address can be assigned across the Operating Units (if the MOAC is enabled for Responsibility).

Suppliers in TCA (Continued) Specify the Site Purpose for all the Sites from one place.

Suppliers in TCA (Continued) The Contact can be shared across the Supplier and Supplier Sites.

Suppliers in TCA (Continued) R12 Technical Changes: Information about the Supplier (name, legal information), Address, and Contact information is replicated in Trading Community Architecture. Attributes that represent the terms and conditions, defaulting information such as payment terms and accounts is maintained in the Supplier/Sites tables. Due to other initiatives such as introduction of Oracle Payments, Oracle E-Business Tax, Oracle Applications Multiple Organizations Access Control, and others, some of the payments and tax related information is migrated to the appropriate products and the related columns are obsolete from the Suppliers/Sites tables.

Suppliers in TCA (Continued) R12 Technical Changes: Supplier API is extended to support creation of TCA entities while creating suppliers. Supplier Merge and the TCA's Party/Party Site merge are modified. Supplier Open Interface processes are enhanced to support creation of TCA entities while importing suppliers and the creation of Supplier Bank Accounts is supported from the Supplier Open Interface.

Suppliers in TCA (Continued) Supplier TCA Technical Architecture.

Suppliers in TCA (Continued) Supplier Migration to TCA

Suppliers in TCA (Continued) Supplier Site Migration to TCA

Suppliers in TCA (Continued) Contact migration to TCA

Suppliers in TCA (Continued) R12 Supplier Open Interface

Banks in TCA Banks and Bank Branches are represented in Oracle’s Trading Community Architecture. Banks and Bank Branches are shared by other applications. The Bank Account is centrally defined, managed and secured. Single access point to manage internal Banks for Payables, Receivables, Payroll, Treasury and Cash Management.

Banks in TCA (Continued) 12: Cash Mgmt Cash Mgmt Payables Bank Accounts Payables TCA Payables Receivables Receivables Banks Payroll Bank Accounts Payroll Payroll Bank Accounts Treasury Bank Accounts Treasury Treasury

Banks in TCA (Continued)

Banks in TCA (Continued) Create Bank: Bank is created is TCA Party. Bank Contact is also created as a Party with “Contact” relationship with bank.

Banks in TCA (Continued) Create Branch: Bank Branch is created is TCA Party. A “Branch” relationship is created between Bank Party and Bank Branch Party. Bank Branch Contact is also created as a Party with “Contact” relationship with bank branch.

Banks in TCA (Continued) Create Internal Bank Account:

Banks in TCA (Continued) Assign the Internal Bank Account use by Operating Unit and Sub-ledger.

Banks in TCA (Continued) Banks and Banks Branches can be queried from, CE_BANK_BRANCHES_V Internal Bank Accounts can be queried from, CE_BANK_ACCOUNTS Bank Account Uses can be queried from, CE_BANK_ACCOUNT_USES_ALL

Banks in TCA (Continued) Internal Bank Creation API, CE_BANK_PUB.CHECK_BANK_EXIST CE_BANK_PUB.CREATE_BANK Bank Branch Creation API, CE_BANK_PUB.CHECK_BRANCH_EXIST CE_BANK_PUB.CREATE_BANK_BRANCH Bank Account Creation API, CE_BANK_PUB.CREATE_BANK_ACCT Bank Account Uses API, CE_BANK_PUB.CREATE_BANK_ACCT_USE

Invoice Lines New table AP_INVOICE_LINES_ALL is introduced. New fields are added to Invoice Lines Screen for Enhanced Asset Tracking. New features; Line Level PO matching and Line Level approval are added. Withholding tax are now represented in Line level. Thus every Tax group and Tax code can have different lines and clear accounting. Select OU

Invoice Lines (Continued) New table AP_INVOICE_LINES_ALL is introduced. New fields are added for Enhanced Asset Tracking. Select OU Item Description Manufacturer Serial Number

Disbursement Requests Disbursement Requests are requests to make a payment to a company or individual that is not a supplier. Takes advantage of Oracle Payables’ Approval Workflow.

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. Automatically pulls information from Oracle Receivables and Oracle Payables, taking into consideration, discounts, late fees, and withholding taxes prior to determining the final netting amount. The Payables and Receivables Netting feature enables the automatic netting of Payable and Receivable transactions within a business enterprise.

AP/AR Netting (Continued) Predefine a netting agreement that incorporates the netting business rules and transaction criteria needed to tailor the netting process. The netting process automatically creates the Payables payments and Receivables receipts required to clear a selected number of Payables and Receivables transactions.

AP/AR Netting (Continued) AR Invoices #203 $500 #460 $600 Customer Receipt $800 Netting AP Invoices #699 $400 #982 $400 Supplier Payment $800

AP/AR Netting (Continued) Define a Netting Bank Account.

AP/AR Netting (Continued) Define a Netting Bank Account.

AP/AR Netting (Continued) Define Receipt Class

AP/AR Netting (Continued) Create Netting Agreement

AP/AR Netting (Continued) Create Netting Agreement

AP/AR Netting (Continued) Create Netting Batch. When Netting Batch process, AP/AR Netting will create Payable Check or Receivable Receipt depends on AP/AR transaction summary.

AP/AR Netting (Continued) Netting Technical Info:

AP/AR Netting (Continued) Netting Technical Info:

Payments New product in Release 12 Processes invoice payments from Oracle Payables, bank account transfers from Oracle Cash Management, and settlements against credit cards and bank accounts from Oracle Receivables. Replaces iPayments which is obsolete R12 Centralize the payment process across multiple organizations, currencies, and regions

Payments (Continued) Oracle Payments is a central engine to disburse and capture payments. For electronic payments, it connects Oracle EBS products like Receivables and Payables to financial institutions like banks and credit card processors. Financial Institutions Oracle Payables Oracle Payments Other applications Oracle Receivables Print Payments

Payment Process Enhancements Invoice Selection from multiple operating Units Invoice Entry Invoice Selection Payment Processing Shared Service Center Operating Unit Operating Unit A Shared Service Center Operating Unit Shared Service Center Operating Unit Operating Unit B Invoice OU A Invoice OU B

Payment Process Enhancements (Continued) Payment APIs: Name Function IBY_FNDCPT_COMMON_PUB Common structures and constants for all funds capture APIs IBY_FNDCPT_SETUP_PUB Set-up APIs for funds capture entities- payer, payment channels, instrument assignments, etc. IBY_FNDCPT_TRXN_PUB Funds capture transactional APIs IBY_EXT_BANKACCT_PUB External bank account APIs IBY_CREDITCARD_PKG Create, Update, Check if it exists and Querying attributes.

Sub Ledger Accounting (Continued) Important SLA Tables: XLA_EVENTS - An Entry is created in this table for every transaction event. XLA_AE_HEADERS - SLA Header table XLA_AE_LINES – SLA lines table XLA_DISTRIBUTION_LINKS – Link between SLA tables and AP/AR/FA etc. base tables