A Presentation/Document that outlines all the New features in Oracle R12 AP module.

1. RELEASE 12 : PAYABLES

2. Trading Community Architecture

3. Agenda
 Suppliers
 Bank’s
 Retainage
 Recoupment
 Payments Manager
 AP/AR Netting

4. Supplier’s
In 11i
 Suppliers defined in AP.
 Supplier contacts replicated for each supplier site.
In R12
 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.

6. Creating Supplier
Creating Supplier

7. Select

8. Click Apply to
continue
Enter Header Level Info

9. Select Address book to
Insert Site Address

10. New Address

11. Site Name

15. Click on Create to Create
a new Supplier Bank A/c

17. Banks and Bank Details
• The Bank Account model in R12 provides a single
access point for defining and managing internal bank
accounts for Oracle Payables, Oracle Receivables,
Oracle Payroll, Oracle Cash Management, and Oracle
Treasury.
• A single Legal Entity is granted ownership of each
internal bank account. One or more Organizations
are granted usage rights.

19. Ownership of internal bank account
• Each Legal Entity is granted ownership for each
internal bank account.
• For Granting Access to the Legal Entities log In to Sys
Admin
• Go to “User Management” Responsibility
• Click on “Roles & Role Inheritance”

20. Give Required
Information
Click on Go

21. Click on Update

22. Select

23. Click on Run Wizard

24. Select Add Legal Entities to
Give access to Bank Accounts

25. Click on apply after
Adding Legal Entities

26. Creating Bank and Bank Branches in Payables
Navigation for Defining
Banks
Select

27. Select

28. Click on Create

29. Enter Bank
information
Select

30. Click on Create
to Add Address

31. Click on
Apply to
Save the
informatio
n entered

32. Click

33. Click Finish after
entering contact info
Click on Create
to enter a
Contact info

34. Creating Bank Branches
Click on Bank Braches Tab
Create new Bank
Branches

35. Enter Bank Name and
Country
Click Continue

36. Enter Branch
Information
Select Save
and Next

37. Select Create to Fill
Bank Branch Address

38. Enter Branch
information
Click on Apply

39. Select

40. Click Finish after
entering Contact’s
Click on Create
Contact to add
Contact

41. Creating Bank Account’s
Navigation
Select

42. Create New Bank Accounts

43. Enter Bank And
Branch Name
Click Continue

44. Enter your Legal
Entity in Bank
Account Owner
Select Next
to Continue
Note:- If Legal Entity Is not Granted Access at the Sys
admin Level in “User Management” Responsibility, you
can not View your Legal Entity in the above “Bank
Account Owner” Field.

45. Select Save and
Next to Continue
Enter Bank
Account
Information

46. Select Save and
Next to Continue
Enter
Required
Information
rest all are
Optional

47. Select to Grant
Access to
Operating Unit’s

48. Enter Account use and
Operating Unit
Select Continue

49. Enter Payment Method
and Category

50. Select Apply
to continue

51. Click on Add Organization
Access to Give bank account
access to Multiple Operating
Units Click Save and Next to
Continue

52. Select Finish to Save your
work
Click on Create Contact to enter
Contact info of Bank account

53. Select
Select the Bank Account

54. Select

55. Select Apply
Enter
Required
Information

56. Payment Doc got Created

57. Retainage and Retainage Release
• Retainage is the common practice of withholding a fixed
amount / percentage of payment until all work under a
contract is complete and accepted.
• Retainage is also called ‘retention’ or contractual
withholds’.
• At the end of the project or when agreed events have
occurred, the supplier requests the amount retained and
payment is made to release it.
• Retainage comes under Complex Payments

58. Contract with Subway
Contract amount 15,000, Retainage 20%
AMT Invoice Retain Amount Amount Paid
1. Stage - 8000 8000 1600 6400
2. Stage - 4000 4000 800 3200
3. Stage - 3000 3000 600 2400
Total - 15,000 3,000 12,000
Release the Retained Amount, Once an Agreed event
Occurred by “Retainage Release Invoice”

59. Required Setups
Enter Retainage A/c in
Financial Options

60. 1. Navigate to Supplier’s Window
3. Select
2. Select
4. Give Retainage Rate

61. Create Complex Service Agreement in Purchasing
Navigation
Select

62. Select “Complex Service Agreement”
from list of Values
Click

63. Enter Supplier and
Supplier Site
Go To

64. Enter Contract
Amount Click on
Update
Enter Type as Fixed Price
Enter Contract
Services
Need by Date

65. Select
Enter Retainage
Rate
Enter Charge
Account

66. Select

67. Select Split to Split
the Contract into
Stages

68. After completion move to the
Distributions Tab
Give the Need
by Date
Enter Type as Split the Contract amt
Lump Sum

69. After Completion select Submit

70. Complex Service Agreement has been
Approved. Agreement NO is- 5546

71. Navigate to Invoice Workbench to Raise Invoice
Enter the
Enter the Agreement No
Invoice Amt
Match Invoice with the
Agreement

72. Select the Match Amount
Click on Match after Selecting

73. 10 percent of the Total amt got
automatically got Retained
Go to Actions and Pay the
Invoice

74. Out of 25,000 invoice amt 2,500 got
retained and amount paid to Supplier
is 22,500

75. Retainage Release
Select PO Number
Select Invoice Type as Enter Invoice Amt to
Retainage Release be Released
Go to Match and Match
the Agreement

76. Select The Po line to be Matched
Release the Amount
After Release go to Payment work
Bench and Pay the Amount

77. Contract with Subway
Contract amount- 35000, Prepaid amount-7000
Recoupment Rate 20%
Amount Invoice Pre’ment Applied Amount paid
Stage 1 20,000 20,000 4,000 16,000
Stage 2 15000 15,000 3,000 12,000
Total 35,000 7,000 28,000

78. Select “Complex Service Agreement”
from list of Values
Click

79. Enter Supplier and
Supplier Site
Go To

80. Enter Contract Click on
Amount Update
Enter Type as Fixed Price Enter Contract
Services Need by Date

81. Select
Advance amount is Prepaid
amt Paid to Supplier
Recoupment rate is
7000/35000*100

82. Select

83. After completion move to the
Distributions Tab
Give the Need
by Date
Enter Type as
Split the Contract amt
Lump Sum

84. Give Prepaid Account
Click on

85. Complex Service Agreement has been
Approved. Agreement NO is- 5547

86. Navigate to Invoice Workbench to Raise Prepaid Invoice
Enter the
Enter the Agreement No
Invoice Amt
Match Invoice with the
Agreement

87. Select the Match Amount
Click on Match after Selecting
After Matching Pay the
Invoice

88. Raise a Standard invoice and match with Agreement
Enter the
Enter the Agreement No
Invoice Amt
Match Invoice with the
Agreement

89. Select the Match Amount
Click on Match after Selecting

90. Prepayment Automatically applied
according to Recoupment Rate
Pay the Invoice

91. Total amount paid to Supplier is
20,000

92. Payments Manager
• The Payments Manager enables you to complete a pay
run from start to finish Payments.
• The Payments Manager is comprised of the following
components:
Payments Dashboard
Templates
Payment Process Requests
Payment Instructions
Payments

93. Creating Payments through Payment Manager
Navigation
Select

94. Select

95. Select to create a
new template

96. Enter Template Name
Enter Supplier Name
Select Pay group
After Completion click on
Payment Attributes Tab

97. After Completion click on
Process Automation Tab
Select Bank A/c and
Exchange rate Type

98. View
Select Apply
When “Initiate Payment Process
Request is complete” is selected
System will Automatically create
Format for the Payments Selected

99. Go to
Select

100. Enter Request Name and Select Template from
list of values
Select User
Rates Tab
Information gets defaulted from Template

101. Select Submit “Requests”
Enter exchange rate gets Generated

102. Report Gets Generated

103. Go back to
Query the Process
Request
Click on

104. Click on submit Request
gets generated
Select to Add or Remove
Payments

105. 3. Go to Payment Instructions
Tab to complete the Payment
1. Query the Process
Request
2. Status changes to
Formatting

106. Query by Process Request
Name and Creation Date
Select

107. Select Continue the
Apply

108. Go to
Query “Process Request
Name”
Status got Confirmed

109. Navigate to Payments Overview
to view Payments Made

110. AP/AR Netting
• The Payables and Receivables Netting feature enables the
automatic netting of Payable and Receivable transactions
within a business enterprise.
• You can predefine a netting agreement that incorporates the
netting business rules and transaction criteria needed to run
your tailored netting process.
• The netting process automatically creates the Payables
payments and Receivables receipts required to clear a
selected number of Payables and Receivables transactions.

111. Prerequisites for AP/AR Netting
• Define a netting control account in GL.
• Define a netting bank account.
• Associate the bank account with the AP/AR Netting
receipt class.
• Enable the Allow Payment of Unrelated Transactions
Receivables System Option.
• Define Document Sequence for Receipts and
Payments.

112. Defining Netting Agreement
Navigation
Select

113. Select

114. Select Bank A/C
Enter Operating Unit
name and Rules
And Agreement Name
Select Invoice
and Transaction
Types
Once Finished Click
on Next

115. Select Supplier and Customer

116. Select Finish to Complete

117. Creating Netting Batch
Navigation
Select

118. Select

119. Select the Required Information
and give the Batch Name
Once Submitted go back to Netting Batch Once Finished Click
window and Query the Netting Batch on Submit

120. Status got Complete
Click on To View the Transactions
Netted