Pay on Receipt by Melissa

download Pay on Receipt by Melissa

of 24

  • date post

  • Category


  • view

  • download


Embed Size (px)

Transcript of Pay on Receipt by Melissa

Mystery Solved: Pay on ReceiptMelissa Sider DARC Corporation

Objectives Introduce Pay on Receipt Identify Set Up Requirements Discuss Benefits and Features

What is Pay on Receipt? Oracle Purchasing Function Integrates to Payables Enables Automatic Creation of Invoices Based on Receipt Transactions Use Receipt and PO Data Matching Rules ensure proper payment

A.K.A. Pay on Receipt This feature is alternately known in Oracle User Guides as: Evaluated Receipt Settlement (ERS) Payment on Receipt (POR) Self-Billing Invoices (SBI)

How does it work? Receipt transactions trigger invoice creation Receipt Delivery Advance Shipment Notice Advance Shipment and Billing Notice

How does it work? Invoices are consolidated at one of the following levels: Packing Slip Triggers one invoice per packing slip Receipt Triggers one invoice per receipt Supplier Pay Site Triggers one invoice per supplier pay site

How does it work? Depending on your business needs, you can use Pay on Receipt to automatically create invoices for: All your vendors; or Select vendors; or Select Purchase Orders

How does it work? Invoices are generated by running the Pay on Receipt AutoInvoice and Payables Open Interface Import processes. Invoices move normally through Approval and Payment processes. Process Returns with automatic Debit Memos that are matched to the original Purchase Order.

How Invoices are Built Invoice Amount = Quantity Received X Purchase Order Item Unit Price Payment Terms Default from the Purchase Order Payment Terms or from Supplier Site Payment Terms Tax Based on the tax code in PO Shipment or the Default Tax Hierarchy in Payables.

How Invoices are BuiltThe invoice number is created in the following format ERS where: ERS is the default prefix for Pay On Receipt invoices or any prefix specified in the profile option PO: ERS Invoice Number X depends on the summary level: if summary level = Pay Site then X = Invoice Date if summary level = Packing Slip then X = Packing Slip Number if summary level = Receipt then X = Receipt Number

Seq# is a unique system generated number.

Pay on Receipt Benefits Pay on Receipt offers the following benefits: Reduce or eliminate paperwork associated with invoice payment processes Reduce the risk of manual data entry errors Avoid duplicate entry of invoices Ensure that invoices are entered into the system in a timely manner

Setting Up Pay on Receipt PO: ERS Aging Period PO: ERS Invoice Number Prefix

The Pay on Receipt Process




Supply Base Manager Sets Supplier Options for Pay on Receipt

Purchasing Creates Purchase Order using POR Supplier

Supplier Ships Goods


Goods Returned to Supplier

Goods Delivered to Inventory Inventory Quality Assurance Inspects Goods Receiving Receives Goods

Invoice Created via AutoInvoice Process $ Debit Memo Created $ Accounts Payable

Pay to


Payment to Supplier

Set Up Supplier SBI

Set Up Supplier Currency

Create Purchase Orders

Run POR AutoInvoice

Using Payables Batching Pay on Receipt supports AP Batching Invoice Count and Total are automatically calculated

Handling Errors Two reports assist in identifying and solving errors: Purchasing Interface Errors Report Payables Open Interface Report

Tax Set up Supplier Site with Automatic Tax Calculation at Line or Tax level Tax values inherited from Tax Codes (PO Shipment) or Default Tax Hierarchy Tax is calculated at Invoice Approval or manually in the Distributions window

Different Purchasing and Pay Sites

Set up both site for Pay on Receipt Indicate Pay Site as Alternate Site in the Purchasing Site Self-Billing Region

Return to Suppliers Select Create Debit Memo from RTS Transaction checkbox in the Supplier Sites window. Ensure the Create Debit Memo option is selected in the Returns window.

Invoice Inquiry Use the ERS Invoice Number Prefix as a starting point for searches

Conclusion Easy to set up and use Reduces paper consumption Reduces manual entry of invoices Test completely in safe environment Use aliases to search for information in PO and AP User Guides