AP Hold Resolution Workflow

R12 : White Paper on AP Hold Resolution Workflow - Doc ID 1590008.1 1

Oracle Applications

White Paper

How to Use AP Hold Resolution Workflow in R12

Contributors: Sanjay Prasad

Reviewer: Sriram Ramanujam

Versions: 1.0

Create Date: 07-OCT-2013

Update:


Contents INTRODUCTION .................................................................................................................................................... 3

Objective ......................................................................................................................................................... 3 Scope/Out of Scope ......................................................................................................................................... 3 Terms Used ..................................................................................................................................................... 3

BUSINESS CASE ................................................................................................................................................... 4 Methodology ................................................................................................................................................... 4 Business Example ........................................................................................................................................... 4

SETUP .................................................................................................................................................................. 6 Setup in Payables ........................................................................................................................................... 6 Setup in System Administrator ........................................................................................................................ 9 Setup in AME ................................................................................................................................................ 10

TRANSACTION FLOW ......................................................................................................................................... 13 Business Flow 1 ............................................................................................................................................ 13 Business Flow 2 ............................................................................................................................................ 25

TECHNICAL DETAILS ......................................................................................................................................... 30 AP Invoice Hold Notification ....................................................................................................................... 30 AP Invoice Hold Negotiation ........................................................................................................................ 31


Introduction

Objective

How to use AP Hold Resolution workflow in Oracle Payables Release R12.X.X

Scope/Out of Scope

In this white paper we will cover followings:

a) Setup in Oracle Payables to enable AP Hold Resolution Workflow

b) Configure AME (Approval Management Engine) to use AP Hold Resolution Workflow

c) Guide explaining how to use AP Hold Resolution Workflow for Business transaction

This paper does not cover:

a) How and why System places hold on Invoice

b) Details of Generic AME setup

c) Supplier contact directory setup

Terms Used

AME : Approval Management Engine

Invoice : Oracle Payable Invoice

PO : Purchase Order Transaction

Matching Hold : Holds resulting due to discrepancy between Purchase Order and Invoice


Business Case

Methodology

AP Hold Resolution Workflow can be used to automate resolution (releasing) of Hold by using

workflow. By using AP Hold Resolution, the hold details can be routed to a designated user for

his/her decision on how to release the hold. User can take decision on notification like release the

Hold, correct the invoice data to get the hold released, check / negotiate with supplier if there is any

discrepancy in Invoice sent by supplier etc. There may be many business scenarios arising in this

flow. T

wider spectrum of the feature.

Business Example

e will take business example , go through

different steps to complete business flow and to get the hold released by using workflow.

We will discuss following 2 business examples ;

1) Supplier Cancels the Invoice: , system places a

matching Hold. The hold ultimately gets routed to supplier as a negotiation to have the

discrepancy corrected, after review of discrepancy supplier finds mistake and decides to

cancel the invoice. Following different activities would be performed in sequence:

a. Raise Purchase Order to buy material from supplier.

b. Supplier delivers Material.

c. Supplier sends Invoice. (To generate discrepancy we will have supplier invoice for

quantity more than delivered)

d. Record the Invoice as sent by supplier

e. On performing validation of Invoice, system places Quantity Received hold

(Matching hold) as Quantity of Invoice is more than quantity received

f. Notification about discrepancy between PO and Invoice goes to Buyer of PO

g. Buyer reviews the data and decides to Negotiate with Supplier on Discrepancy

h. Supplier reviews the negotiation and decides to cancels the invoice.

i. In Payables Invoice gets cancelled automatically.

2) Supplier Accepts the Negotiation:

matching Hold. The hold ultimately gets routed to supplier as a negotiation to have the

discrepancy corrected, after review of discrepancy supplier finds mistake and decides to

accept the negotiation. Following different activities would be performed in sequence:

a. Raise Purchase Order to buy material from supplier.

b. Supplier delivers material.


c. Supplier sends Invoice. (To generate discrepancy we will have supplier invoice for

quantity more than delivered)

d. Record the Invoice as sent by supplier

e. On performing validation of Invoice, system places Quantity Received hold

(Matching hold) as Quantity of Invoice is more than quantity delivered

f. Notification about discrepancy between PO and Invoice goes to Buyer of PO

g. Buyer reviews the data and decides to Negotiate with Supplier on Discrepancy

h. Supplier reviews the negotiation and decides to accept the correction.

i. In Payables Invoice data gets corrected according to the negotiation accepted


Setup

Setup in Payables

To use workflow for a specific Invoice Hold, hold definition need to be configured.

Navigation: Payables> Setup> Invoice> Hold and Release Names

Query the Hold for which we want to use AP Hold Resolution Workflow.

E . This makes the respective Hold to be eligible for Hold resolution

workflow.

Notify After: Value for this determines, when the hold notification to be sent to respective one who is

supposed to resolve the hold. If set to zero, then the moment system places hold, system notifies

the respective one for hold resolution.

Remind After: Value for this is used to determine, after how many days a reminder notification would

be sent to approver.

Navigation: Payables>Setup>Invoice>Tolerance


Tolerance is 0%, this means if there is any difference between quantity received and billed, system will place

Qty Rec hold on respective Payable Invoice. This control would be applicable for the invoices of the suppliers

Navigation: Payables>Suppliers>Entry

Query the supplier

Note:

Value for Invoice Tolerance: SAN-GOODS


directory

Navigate Contact Directory

Note:

Username:[email protected]

ally creates FND User,

Respective

This completes setup in Payables.


Setup in System Administrator

In System Administrator, we will review FND Users.

In respect of approval following two FND Users is point of interest:

1) Requestor/Buyer: User who requests material for purchasing. This user would be employee of the

2) Supplier Contact: User who responds to negotiations from supplier side. This user would be an

external party attached with Supplier contact. In our example user name is

[email protected] attached with supplier contact SANJAY PRASAD (as shown in supplier

Navigation: System Adminstrator > Security > User > Define

User Definition of Buyer:

Note:

User Name: SAN

User Definition of Supplier Contact:

Note:

User Name: E mail id of the Supplier contact [email protected]

This completes setup in System Administrator.
mailto:[email protected]


Setup in AME

For approval AME needs to be configured. System does provide seeded approver group and rules,

Approver Group Setup

Navigation: Approvals Management Business Analyst>Setup>Approver Groups

AP_

Attribute Setup

Navigation: Approvals Management Business Analyst >Setup>Attribute

AP Hold Resolution Workflow

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