Describe the 4-Way Matching?

2 – Way Matching: The Invoice Amount Should match with PO, (Invoice with PO)
3 – Way Matching: The Receipts Should match with Invoice, (Invoice, PO with Receipts)
4 – Way Match: The Goods Should match with Inspection/Accepted (Invoice, PO, Inspections &
Receipts)
2-Way (Invoice to Purchase Order)
Quantity billed vs. quantity ordered on shipment line
Invoice unit price vs. purchase order line unit price
3-Way (Invoice to Purchase Order and Receipt)
2-Way match criteria AND
Quantity billed vs. quantity received
Item = Receipt Required
4-Way (Invoice to Purchase Order and Receipt and Inspection)
3-Way match criteria AND
Quantity billed vs. quantity accepted
Note: Quantity accepted = (Quantity received – quantity rejected)
Item = Inspection Required

How many Holds we have?

System Holds: Tax, Quantity Match, Po amount with Invoice Amount
Manual Holds: Invoice Limit, Hold on Invoice

Can you Release Manual Holds? If Yes, How?

Yes. Holds – Release Holds

How many ways you can pay the Invoice Amount?

Apply in Full
Schedule Payments
Installments
What is the difference between Debit and Credit Memo?
Debit Memo will raise the Customer
Credit Memo will raise the Vendor

Can you create a Duplicate Vendor ?

No

Vendor Number Should be Generate Automatic or Manually?

Both, Manual And Automatic
How many key flexfields are there in Payables?
No key flexfields in PO,AP

What are Payment Terms?

Payables uses payment terms to automatically calculate due dates, discount dates, and
discount amounts for each invoice you enter. Payment terms will default from the supplier site.
If you need to change the payment terms and the terms you want to use are not on the list of
values, you can define additional terms in the Payment Terms window.

What are the Payment Methods available?

• Check – You can pay with a manual payment, a Quick payment, or in a payment batch.
• Clearing – Used for recording invoice payments to internal suppliers.
• Electronic – You generate an electronic payment file that you deliver to your bank to create
payments. Use Electronic if the invoice will be paid using EFT or EDI.
• Wire – Used to manually record a wire transfer of funds between your bank and your
supplier’s bank.

What are the line types of an Invoice?

Item: Item lines capture the details of the goods and services billed on your invoice.
Freight: Freight lines capture the details of your freight charges.
Miscellaneous: Miscellaneous lines capture the details of other charges on your invoices such as
installation or service.
Tax: Payables integrates with Oracle E-Business Tax to automatically determine and calculate
the applicable tax lines for your invoices.

What are the Invoice Distribution Types?

Item
Freight
Miscellaneous
Tax
Withholding
Prepayment

What are Holds in AP?

Holds can be placed by the system and some holds can be placed manually. Holds prevent
payment and, sometimes, accounting of an invoice. Payables applies holds to invoices that fail
the Invoice Validation process. Release holds from invoices to allow payment and accounting
entry creation for the invoices.

What are the Interface Tables in AP?

AP_INVOICES_INTERFACE
AP_INVOICE_LINES_INTERFACE
AP_INTERFACE_CONTROLS
————————————–
AP_SUPPLIERS_INT
AP_SUPPLIER_SITES_INT
AP_SUP_SITE_CONTACT_INT
AP_SUPPLIER_INT_REJECTIONS

Give some of the Oracle Payables interface?

a) Credit Card Transaction Interface
b) Invoice Import Interface
c) Payables Open Interface
d) Purchase Order Matching

What are the key tables where supplier bank information are stored?
IBY_EXTERNAL_PAYEES_ALL
IBY_EXTERNAL_PAYERS_ALL
IBY_EXT_BANK_ACCOUNTS
IBY_PMT_INSTR_USES_ALL

What is meant by with-holding tax invoice?

A separate tax invoice generated for withholding tax amount. Later this invoice will be knocked
of when making the payment made to the authority.

What are all the Modules Interacting with AP?

Cash Management
Oracle iExpenses
General Ledger
Oracle Assets
Subledger Accounting (R12)
HRMS
Project Accounting
 Purchasing/iprocurement
Global Accounting Engine (11i)

What are the mandatory setups in AP?

1- Financial Options
2- Define Suppliers
3- Define Payment Terms
4- Define Payment Methods
5- Define Banks and Banks Accounts And Banks Accounts Documents
6- Open AP Accounts Periods

What is pay date basis?

The Pay Date Basis for a supplier determines the pay date for a supplier’s invoices.
• Due
• Discount

What is the difference between quick payment and manual payment?

Quick Payment: It allows you to make a single payment against one or more invoices at a time
to one supplier through payables.
Manual Payment: This is the process of entering the check details which has been paid
manually in some emergency requirements into the payment form and selecting the invoices of
the concerned supplier and check whether the total of the invoices and the paid amount at the
header are same and save.

What is terms date basis?

Terms Date Basis is to calculate due date.
Due date is calculated 4way. Eg: payment term is 30days
 Due date = Sysdate + 30days
 Due date = Invoice date + 30days
 Due date = Goods Receive Date + 30days
 Due date = Invoice Received date + 30days

How you will transfer payables to general ledger?
When the payable accounting entries are created, then run the program called ‘Payables
Transfer to GL’ Program, which sends the invoice entries and payable entries to GL interface.
Then submit a request called Journal import to import journal entries to GL.

What are Aging Periods?

Aging periods are nothing but the periods that we setup to control and maintain the supplier
outstanding bill towards the invoice. From this we can able to study the due date of the
supplier form the generation of invoice.

What are the different Invoice types?

Standard Invoices

            Credit memos

            Debit Memos

            Prepayment

            Withholding Invoice

            Expense Report

            PO default

            Quick Match

            Mixed

What are the different types of payments?

 Refund, Manual, Quick, Automatic Payment

What are the three modes of entering payments manually?

Thru PAY IN FULL

 Thru SCHEDULED PAYMENTS

 Thru PAYMENT/ENTRY/PAYMENTS FORM

  Q2. Match/Hold: How do I remove a Final Matching hold so that I can pay the invoice?
 A:This hold is in effect because the invoice was matched to a PO line that has a status of Final
Closed. There is no way to manually remove the hold; the system must remove the hold. There
are two workarounds for this situation:

 Workaround #1: You need to reverse the distribution line that has the final match hold. You
can then create a new PO line, and match to that line.

Workaround #2: You can manually create a distribution line on the invoice that is not matched
to the PO, but is charged to the correct GL account. For More information on Final Match Holds
see Note 1026090.6.

Q4. Invoice Type: What is a "Mixed" Invoice and how do I enter one?

 A: Mixed Invoices are invoices or credit/debit memos for which you can perform both positive
and negative matching to purchase orders and to other invoice

For example, you can enter an invoice for -$100 with Invoice Type Mixed. You can match to an
invoice for $-200, and match to a purchase order for $100.

 To enter a Mixed invoice

1. Enter the invoice or credit/debit memo in the Invoices Summary, and enter Mixed as the
invoice Type. You can enter either a positive or negative invoice amount.

 2. Match to purchase orders, and/or invoices.

 
 Q5. How do I create a Withholding Tax invoice?

A:After you apply withholding tax to an invoice, you can optionally create invoices to remit
withheld tax to the tax authority.

 Payables can automatically create withholding tax invoices, or you can perform this task
manually. If you chose to automatically create withholding tax invoices, you must choose
whether to do this during Approval or during payment processing. Indicate this choice in the
Withholding Tax region of the Payables Options window. See: Withholding Tax Payables
Options.

 If you choose to create withholding tax invoice manually, create an invoice for each
Withholding Tax type invoice distribution on an invoice. Create the invoice for the tax authority
supplier and site assigned to the Withholding Tax type tax name and for the amount of the
Withholding Tax type invoice distribution.
Please see Note 198307.1 and the 11i Payables User Guide (pages 10-26 through 10-55), for
more information on Withholding Tax invoice creation.

Q6. Interest: How do I create Interest Invoices?

 A:Chapter 10 of the 11i Payables User Guide discusses setting up and using Interest Invoices.
Also see Note 198308.1 for more information on creating Interest Invoices including coverage
of the following Interest Invoice sub-topics:

1) Setting steps that must be completed 

2) Minimum Interest amounts 
3) Expense GL Account to be charged for interest expense 
4) Liability GL Account to be charged for interest expense 
5) Automatic Interest 
6) Invoice Due Date calculations 
7) Interest amount calculations

Q13. What are the MetaLink keywords I should use when searching for Invoice Processing
Issues on MetaLink?

 A: PAYABLES; APXINWKB; INVOICE

 Is it possible to have Oracle Payables (AP) and Oracle Projects (PA) report in different
currencies?

 A:  You cannot set up AP and PA to use separate currencies in the same set of books.  The
Oracle General Ledger (GL) set of books defines one functional currency for Projects, Payables,
Receivables (AR), Purchasing (PO) and Assets (FA).  You can run Oracle Applications on one
functional currency and use Multiple Reporting Currencies (MRC) to report in the currency that
fits your business needs. 

What is a Debit Memo Invoice?

A: Negative amount invoice which is created and sent to a supplier to notify the Supplier of a
credit you are recording.

 Q2. When should a Debit Memo be created?

 A: To correct over billing errors, we create a Debit Memo by doing a Return To Supplier
transaction for the extra quantity that got invoiced.

Q4. How does Create Debit Memo from RTS Functionality Work?

 A: Steps to Create a Debit Memo via RTS: 

 1. Create a PO with supplier and supplier site. 

 2. Receive the goods using Enter Receipts Form. 

3. Create an Invoice. If Pay on Receipt is used to create then Invoice then set Pay on as Receipt
and Invoice Summary Level as Receipt in Supplier sites window under purchasing tab. 

 4. Do a Return To Supplier (RTS) transaction for some of the goods using Returns form. 

5. Make sure the check Box 'Create Debit Memo' is checked in the Return line while doing
the RTS transaction. 
          

  6. This will automatically create a Debit Memo invoice in AP. 

            Depending on how the RCV: Processing Mode Profile option, Receiving Transaction
Processor will be kicked off as soon as Receipt/Return transaction is saved. 

            If profile option RCV: Processing Mode = Batch, then user has to go and manually launch
Receiving Transaction Processor concurrent request. 

            If profile option RCV: Processing Mode = Immediate, then Receiving Transaction
Processor concurrent request will be launched and runs in the background. In this case control
comes back to user and he can do his operations. 

            If profile option RCV: Processing Mode = Online, then Receiving Transaction Processor
concurrent request will be launched. In this case control will not come back to user until
processor completes processing.

Q5. What setup is required to create a Debit Memo?

            A: Navigate: Supply Base -> Suppliers -> Query on supplier -> Sites -> Query on site ->
Purchasing tab -> Check the box for Create Debit Memo from RTS Transaction. Make sure the
check Box 'Create Debit Memo' is checked in the Return line while doing the RTS Transaction. 
 

Q6. Under what Conditions a Debit Memo can be created?

            A: Automatic Debit Memo will be created only when billed quantity of Purchase Order is
greater than or equal to Returned Quantity. Return To Supplier reduces the PO billed quantity
by the returned quantity but in any case PO billed quantity will never go below zero. 
 
Q7. What to do if Debit Memo is not created after doing an RTS transaction? 

            A: Set the profile options RCV: Processing Mode to Immediate and RCV: Debug
Mode to Yes. Receiving Transaction Processor log file (with debug messages of Receiving and
AP code) and database trace file for RTS transaction will help in finding the cause of the
problem. 
 

What's the difference between the "Payables Open Interface Import" program and the
"Payables Invoice Import" program?

 A: The "Payables Invoice Import" is designed to import expense reports. The sources are: 
XpenseXpress and SelfService 

Oracle Project Accounting

The "Payables Invoice Import" should be used to import expense report data from the Invoice
Import Interface Tables (AP_EXPENSE_REPORT_ HEADERS&LINES).The expense report data is
from expense reports you enter in Payables, Self-Service Expenses, or Oracle Projects.

 The "Payables Open Interface Import" program was designed to accomplish high volume
invoice import complete with all of the features of online invoice entry, including these sources:

INVOICE GATEWAY 
EDI GATEWAY 
User Defined Source 
CREDIT CARD 
Oracle Property Manager 
ERS 
RTS 
PA_IC_INVOICES

What is meant by third party payment?

Payments are generally made to the supplier providing the goods or services, however
sometimes there is the requirement when supplier ask you to made payment to different party
on suppliers behalf. All the payments made to the other parties on behalf of the supplier is
termed as third party payment.

What are the period status in AP?

Open, Never open, future, closed, permanently closed

Use of future dated payment?

You can use the future dated payment to control the timing of the payment, and therefore
control your cash flow. A future dated payment instruct your bank to disburse funds to your
supplier's bank on a specific date (Maturity Date).

What is meant by accrual write-off?

IF you choose perpetual accrual method within purchasing, purchasing records an account
payable liability to an ap accrual account for goods received not invoiced. When payables
matches and approves the invoice for received goods, Payables clear the account payable
accrual account and records the actual liability amount to the invoice accounts to the payable
liability account. after you have entered your receipt transactions and matched and approved
your invoices, you can run the accrual reconciliation report to identify any differences between
your purchase receipt and the payable invoice.

What is the report to identify duplicate suppliers?

"Supplier Audit Report" can be used to identify potential duplicate suppliers.

What is term date basis?

From which date the term being calculated. Types: System, goods received, Invoice, Invoice
received, null.

What is pay date basis?

Due, discount, none.

Can you cancel invoice? if yes then explain?

Yes, but before creating accounting.

What is interest Invoice ? and how it can be created?

Payables automatically creates invoices to pay interest for overdue invoices if you enable
automatic interest calculation for supplier, and you pay an overdue invoice for the supplier in a
payment batch or with a quick payment. The new interest invoices are ready for approval and
payment.

What is proxima payment term?

cut-Off day.

What is Zero payment in AP?

Create zero amount payments to pay with basic invoices with offsetting debit or credit memos,
or to record cancelled invoices as paid so they are no longer included on the invoice aging
report. Before you make a zero amount payment, you must enable the allow zero amount
payments option for the bank account you will use to create the payment.

How to Approve 'N' no of invoices?

You can be approved N number of invoices by using Invoice Validation Request.

What is hold and release? Types of hold?

Hold means restriction in invoice for particular processing. User can define any kind of hold to
stop invoice for processing.

What is meant by void payment?

When you void the payment, payables will automatically reverses the accounting and payment
records so your GL will have the correct information, and so the status of the paid invoices is
reset to unpaid. Payables also reverses any unrealized gains/losses on foreign currency invoices
recorded as paid by the payment.
What is program me to transfer data from AP to GL?

Transfer Journal entries to GL (Parameter-Ledger end date)

What report should i run before closing the period?

Period close exception report/unposted transaction.

What does the unaccounted transaction sweep report do?

It will sweep the transaction to next period.

Can we implement MRC at payables?

Yes

What is multi currency payments?

Multi currency is possible but we have to set this at the time of bank set-ups.

Payables open interface import? (Expense report import)?

Use payables open interface import to import invoices from the open invoice interface tables.

Purpose of payable invoice open interface?

It can use the payable open interface import program me to create payables invoices from
invoice data in the payables open interface tables.

Can we make foreign currency invoice and payment?

Yes, but in payables option we have to enable use multiple currency and in bank, enable multi
currency payments.
What are the mandatory setup in AP?

Financial options, payables options, system options, create payment term, create payment
administrator, Creation of supplier, open payable period, Open GL period, Open inventory
period, open PO period.

What is GL date basis in payable option?

The date you want payable to use as the default accounting date for invoices during invoice
entry.

INVOICE DATE: Invoice date you enter during invoice entry.

SYSTEM DATE: Current date for your payable system. The date you enter the invoice.

GOODS RECEIVED/INVOICE DATE: Date you enter in the Date Goods Received field. If no value
is entered, then the invoice date is issued.

GOODS RECEIVED/ SYSTEM DATE: Date you entered in the Date Goods Received field. If no
value is entered then the system date is used.

What is payment settlement in payable options?

Number of days you want payables to add to the system date to calculate default settlement
date for a prepayment. Payables prevents you from applying the prepayment to an invoice until
on or after the settlement date.

What is pay group?

It's to group invoices in to supplier category for payments.

How many types of payment methods?

5 Types i.e. bills, payable, check, electronic, outsourced check, wire.

What is the offset accounting method?

Three types i.e. None, balance, account if we selecting none then supplier account will be same
for all OU, if we selecting balancing then supplier account will segregate for OU wise, if we
select account then it segregate. All code combination based on real distribution account we
have entered for OU wise.

What type of distribution set? and what's the use of skeleton DS?

Use full distribution set to create distributions with set percentage amounts and skeleton DS to
create distributions with no set distribution amounts. For example, a full distribution set for a
rent invoice assigns 70% of the invoice amount to the sales facility expense a/c and 30% to the
administration facility expense account. A skeleton DS for the same invoice would create one
distribution for the sales facility expense a/c and one distribution for the administration facility
expense a/c, leaving the amounts zero. You could then enter amounts during invoice entry
depending on variables such as that months head count for each group.

What is special calendar and why it's required?

Use the special calendar window to define periods that payables uses for automatic
withholding tax , recurring invoices, payment terms, and for the key indicator report. For
example if you monitor staff productivity weekly, use this window to define weekly periods for
the key indicators calendar type.

What are the Methods for accounting?

Cash and Accrual Method.

What is recurring invoice? What are the scenario we/re using this?

Repeatedly incurring invoices for expenses that occurs regularly i.e. Rent for every month or
lease payment.

How can we default supplier site at invoice level?

Enable primer pay check box in supplier site for that particular site.
What are the different types of supplier sites?

Purchasing, Pay, Primary Pay, RFQ only, Procurement card.

What are the encumbrance options for AP? How are they used?

PO encumbrance and requisition encumbrance available in financial options. Encumbrance

used to reserve the funds at the time of raising PR or PO.

What do you mean of retention AP?

It means holding part of payment for a contract supplier. Retain value will be release at the end
of the contact. We can make through retain- age invoice.

Can we sweep invoice which is on hold position?

No, we have hold first have to release that.

What is the work of payment manager?

We can make payment supplier category wise and for multiple supplier payment in one go.

What are the modules interfaced through AP module?

Purchasing, GL.

What are criteria for entering a standard invoice?

Supplier, Supplier site, Payment term, payment method, distribution account.

Can we change the Invoice if we made the payment?

Yes, we can change if it's not accounted and if the amount exceeding the previous amount
otherwise can't change.

Standard concurrent programme in AP?

Create accounting, period close exception report, India- creditor ledger.

What is the use of permanent prepayment and accounting entry?

Ex: Term deposit for long term

Advance to supplier dr 100

To Supplier cr 100

What are types of prepayment?

Permanent: Which is used for long term deposit i.e. fixed deposit, term deposit.

Temporary: Which is used for short term advance i.e. Advance to supplier

What is prepayment and process?

A prepayment is a type of invoice you enter to make an advance payment. We can adjust
prepayment invoice against standard invoice in future.

What do you mean by pay through date and additional pay through days?
Pay Through Date. Payables selects all approved and unpaid invoices that have a due date on
or before the Pay Through Date. You cannot update this field after invoice selection for a
payment batch.
Additional Pay Through Days. Number of days between your regular payment batches.
Payables uses the additional pay through days to determine the default Pay Through Date when
you initiate a payment batch. For example, if you define 5 as the value in this field, Payables
adds 5 days to the system date to calculate the default Pay through Date when you initiate a
payment batch.
5.How to define a payment term, if you require to pay a supplier 50% on delivery and 50% on
installation?
This can be solved in so many ways, by using special calendar we can resolve this problem.
6.How to identify the Set of Books name in payables?
1. Choose set of Books
2. Payables options Accounting Methods Region
3. Profile Options

7.In case of void and re-issue, whether the same document will be issued or new document
will be issued?

Allow Void and Reissue. If you enable this option, you can reissue a Quick payment. You may
need to reissue a check for a Quick payment if it is spoiled during printing. When you reissue a
check, Payables voids the old check and creates a replacement check. The checks are identical
except that the new check as a new check number, payment date, and payment exchange rate
if you are using multiple currencies.  You cannot select the Void and Reissue option for future
dated payments

8.What are different calculation levels of Automatic tax calculation?

Calculation Level. If you enable the Use Automatic Tax Calculation option, select the level at
which you want Payables to automatically calculate sales tax. This value defaults to new
suppliers you enter.
Header. Automatically create tax distributions based on the Invoice Amount and Tax Code in
the Invoices window:
Tax Code. Automatically create tax distributions based on the distribution Amount, Tax Code,
and Includes Tax check box in the Distributions window. When calculating tax amounts, group
lines with the same tax code and Includes Tax check box setting together, calculate tax, and
then round the tax amount.
Line. Automatically create tax distributions based on the distribution Amount, Tax Code, and
Includes Tax check box in the Distributions window. When calculating tax amounts, calculate
tax for each distribution, round the tax amount, then add the tax amounts.

9.Is it possible to un-apply a pre-payment invoice if it is already applied to a standard invoice?

Yes, we can unapply the prepayments at any status except when it is cancelled. Prepayment
apply will not calculate discounts as it is already paid.

10.what options are to be enabled if invoice Currency and Payment Currency are different?
As the invoice currency and payment currency should be same due to which there is no option
available with respect to this.

11.List any five standard reports in oracle payables.

 Five Standard Reports

1. Invoice Aging Report

 2. Invoice Audit Report
3. Payables account analysis Report
4. Payment Batch Control Report
5. Payment distribution Report

12.How to set different interest rates for different suppliers?

There are no such options available for defining different interest rates for different suppliers.
There are only uniform interest rates.

13.When ‘tax code’ at invoice header will be mandatory?

Require Tax Entry at Header. If you enable this option, Payables requires you to enter a Tax
Code and Tax amount in the Invoices window when you enter an invoice.
The calculation should be Header, in this situation the tax code at header level should be
mandatory.

14.Is ‘Invoice received date’ mandatory or optional?

Invoice received date is optional if the terms date is set to other than Invoice Received date.

15.Explain the relevance of ‘Pooled Account’.

Pooled Account. If you use Automatic Offsets and you want to associate multiple companies
with this bank account, then enable this option. When you enable the Automatic Offsets
Payables option, Payables creates one offsetting liability distribution for each invoice
distribution. If you then pay the invoice from a pooled bank account, then which Payables
accounts for the invoice payment, Payables creates one  corresponding cash accounting entry
for each liability distribution.

16.What is accounting entry if we take any discount on payment?

Liability A/c ……Dr               XXX
To Discount A/c                      XXX
To Cash Clearing A/c              XXX

17. When I’m trying to ‘Approve’ invoice, Approve button is grayed out. What could be the
reason?

Allow Online Approval. Enable this option if you want to allow users to submit Payables
Approval in the Invoices window and the Invoice Batches window.

If you are not enable the above circled item then the above case will arise.
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.

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.

5.What is the format of Interest Invoice number?

Ans. Interest Invoice format no. is spitted 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 INT – Is the symbol 1 is the suffix attached to the
the invoice No. On for Interest interest invoice depends on the
which interest is No. Of times interest paid on a
paid or calculated particular Invoice e.g. if you paid
interest for second time then the
invoice will generate with suffix 2

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:
Ø  If the Terms Date Basis is set to System Date, then the Terms Date is the same date that the
recurring invoice was created.
Ø  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.

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,
Ø  Default Profile name.
Ø  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.
Ø  System generated No.

12.What reports will be shown if you run concurrent program for Expense report?
Ø  Payables Invoice Import Audit Report
Ø  Payables Invoice Import Exceptions Report
Ø  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.
Ø  Invoice. Select Invoice if you want to apply an amount range to each invoice.
Ø  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?
Ø  Tax authority to defined as supplier
Ø  Tax codes & Tax groups to be defined
Ø  Special calendar to be defined
Ø  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.
Ø  Default Template
Ø  Payment Terms
Ø  Pay Group
Ø  Payment priority
Ø  Apply advance
Ø  Automatically Create employee as supplier
Ø  Hold unmatched Expense Report