How You Implement Payables and Payments

The Invoicing and Payments Configuration for Rapid Implementation task list provides the framework for managing essential setups for Oracle Payables and Oracle Payments.

The framework includes setups for Oracle Procurement that are required for Payables. It also provides the setup steps for common options, distribution sets, and invoice tolerances for Payables, and the setup steps of disbursement system options, payment methods, and payment process profiles for Payments.

Setting Up Payables and Payments

The tasks in the following list relate to the setup of Payables and Payments.

For setting up Payables and Payments, each task is performed by the Application Implementation Consultant. References to help topics in the following tasks are from the following publications:

• Oracle Financials Cloud Implementing Payables Invoice to Pay

  • General Payables Options chapter, Manage Common Options for Payables and Procurement section

  • Payables Configuration chapter

  • Disbursements chapter

• Oracle Procurement Cloud Implementing Procurement

  • Purchasing Configuration chapter, Define Procurement Agents section

• Oracle Procurement Cloud Using Procurement

  • Supplier Profiles chapter, Create Supplier section

  • Supplier Profiles chapter, Import Suppliers section

1. Configure Procurement business function, procurement agents, and suppliers.

   • Perform the task Configure Procurement Business Function, Procurement Agents, and Suppliers, which includes configuring:

     • The procurement business function for the procurement business unit to specify procurement document control, document defaults, document numbering, and related settings.

     • Procurement agent access to information, such as purchasing documents and suppliers.

     • Suppliers, sites, and other supplier-related information.

   • See: Define Procurement Agents section

     • Procurement Agents

   • See: Supplier Profiles chapter

     • Oracle Supplier Model

     • Import Suppliers section

     • See: Create Supplier section

       • Supplier Sites and Supplier Site Assignments: Explained

2. Manage common options for Payables and Procurement.

   • Perform the task Manage Common Options for Payables and Procurement to set the controls and default values that are used by both Payables and Procurement, such as the default liability account and whether to accrue expense items at time of receipt or at period end.

   • See: Manage Common Options for Payables and Procurement section

     • Guidelines for Common Options for Payables and Procurement

     • Default Distributions

     • Considerations for Offset Segments

     • Considerations for Accruing Expense Items

   Note: You can skip this step if you have used the Rapid Implementation spreadsheet for General Ledger to create the ledger, legal entities, and business units.

3. Manage distribution sets.

   • Perform the task Manage Distribution Sets to define a distribution set, which is a list of accounts with or without percentages. When you create an invoice that's not associated with a purchase order, you can enter the distribution set name to automatically create the invoice distributions with a predefined set of accounts. If the distribution set has percentages, the invoice line amount is automatically distributed to the accounts, otherwise you must enter the amounts manually.

   • See: Payables Configuration chapter

     • Distribution Sets

4. Manage invoice tolerances.

   • Perform the task Manage Invoice Tolerances to define acceptable variances between invoice, purchase order, and receipt information. You can define both percentage-based and amount-based tolerances. Invoices that exceed the specified tolerances are placed on hold during the invoice validation process.

   • See: Payables Configuration chapter

     • Invoice Tolerances

5. Manage disbursement system options.

   Note: Payments provides predefined setups for Steps 5 to 7. You don't need to modify the predefined setups unless you want to change disbursement system options, or configure different payment methods or payment process profiles.

   • Perform the task Manage Disbursement System Options to manage payment processing options at the enterprise and business unit level.

6. Manage payment methods.

   • Perform the task Manage Payment Methods to define or manage payment methods and to attach or update validations that are assigned to them. See:

     • Payment Methods

     • Payment Method Defaulting

     • Example of Setting Up User-Defined Validations for Payment Methods or for Payment Files

7. Manage payment process profiles.

   • Perform the task Manage Payment Process Profiles to define or manage payment process profiles, which are entities that determine the payment processing type, grouping of installments, grouping of payments, and the definition of usage rules based on payment methods, disbursement bank accounts, business units, and currencies. See:

     • Payment Process Profiles