Guidelines for Common Options for Payables and Procurement

You can set options common to the procure-to-pay business flow on the Manage Common Options for Payables and Procurement page. These options are available for invoice business units and requisitioning business units.

Here are the categories of the common options:

• Default distributions

• Automatic offsets

• Currency conversion

• Expense accruals

• Self-billed invoices

• Legal entity information

Default Distributions

Use default distributions to define accounts for payables transaction accounting.

Note: You can also specify some default distributions for a supplier on the Edit Site page.

Offset Segments

If you enter invoices for expenses or asset purchases with more than one primary balancing segment value, consider using automatic offsets. Automatic offsets balance accounting entries for Oracle Fusion Payables transactions. If you don't use automatic offsets, an invoice transaction has a single liability accounting entry, and a payment transaction has a single cash accounting entry.

Currency Conversion

This table describes the options that you can set for currency conversion.

Option	Description
Require conversion rate entry	On enabling this option, you must provide a conversion rate while entering an invoice or a payment in a currency other than the ledger currency. If you maintain daily rates, the date and rate type you enter help in automatically deriving the conversion rate. If daily rates don't exist for that date and rate type, you can't enter or save the transaction. If the conversion rate type is User, then you must enter a conversion rate. You can't create accounting entries for, or pay foreign currency invoices without conversion rates. If you don't enable this option, you can enter conversion rates manually on invoices and payments, or submit the Apply Missing Conversion Rates process. When you create a bills payable document, you must still provide a maturity rate, rate type, and date.
Conversion rate type	This setting provides the default conversion rate type when you enter invoices or create payments. You can change the conversion rate type at invoice entry or payment creation time.
Realized Gain or Loss Distributions	These distributions represent the default realized gain and loss accounts for payments from each of your bank accounts. If the conversion rate changes between invoice entry and payment time, it results in automatic calculation of the realized gain or loss. The realized gain and loss accounts automatically record these values.

Expense Accruals

Determine when to accrue for expense items.

Self-Billed Invoices

This table lists the options for self-billed invoices.

Option	Description
Gapless invoice numbering	You can enable gapless, that's, no breaks in numbering, invoice number generation for your buying organization during pay on receipt processing. You can enable gapless numbering for the entire business unit with this setting or limit it to a supplier site.
Buying Company Identifier	A unique identifier included in the invoice number created by the pay on receipt process.

Legal Entity Information

This table describes the options for legal entity information.

Option	Description
VAT Registration Member State	If your company operates in a member state of the European Union, select the country.
VAT Registration Number	If your company operates in a member state of the European Union, enter the value-added tax (VAT) registration number for your organization.
Bill-to Location	Enter the bill-to location to provide default values. The application uses the bill-to location to derive legal entity information.

Note: You can use the Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheet task to automate common options setup.