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Pay on Receipt by Melissa
Transcript of Pay on Receipt by Melissa
Mystery Solved: Pay on Receipt
Melissa 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 Built
The invoice number is created in the following format ’ERS’–<X>–<Seq#> 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
Supplier
$ $$
Purchasing
ReceivingQuality AssuranceInventory
Supply BaseManager
Sets Supplier Optionsfor Pay on Receipt
Creates Purchase Orderusing POR Supplier
Ships Goods
Receives GoodsInspects Goods
Goods Deliveredto Inventory
Goods Returnedto Supplier
$
$
Accounts Payable
Invoice Created viaAutoInvoice Process
RTS
Debit Memo Created
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