5

Financials Cloud
Supplier Invoice to Payment

Sreeni Devireddy
Director, Product Management
Safe harbor statement
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of September 2019 and Oracle undertakes no duty to update any statement in light of new
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Supplier Invoice to Payment: Agenda

• Shared Services
• Invoice Configuration & Demo
• Single Payments & Payment Process Requests
• Cross Currency Payments
• Cross BU Payments
• Invoice Imaging & One Time Payments

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 Supplier Invoice to Payment: Process Flow

• Requisition to Receipt
Manage Supplier Approve Supplier Resolve Supplier Process Supplier
• Expense Report to Invoice
• Order to Drop Shipment
Invoices Invoices Invoice Holds Credit Memos
• Customer Return to Settlement (1) (2) (3) (4)

Manage • Receipt to Assets

Modify Invoices Net AP/AR Accounts Issue Payments • Bank Statement to
Prepayments
(6) (7) (8) Cash Reconciliation
(5)
• Subledger Journals
to Post

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(1) Manage Supplier Invoices

• Shared Services

• Security

• Supplier Model

• Invoice Sources

• Invoice Structure

• Invoice Types

• Configuration
Centralized Shared Service Center
User Management Only

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Shared Services: Best Practices Best Practices: Shared Services White Paper

Procurement
Centralized Across
Corporate
• Shared Services

• Security
Centralized
Bank Account
• Supplier Model Processing

• Invoice Sources
Centralized
• Invoice Structure Financial
Management

• Invoice Types

• Configuration Fully
Centralized

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Shared Services: Use Case Scenario

• Shared Services

• Security

• Supplier Model

• Invoice Sources

• Invoice Structure

• Invoice Types

• Configuration

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Shared Services: Use Case Scenario

• Shared Services

• Security

• Supplier Model

• Invoice Sources

• Invoice Structure

• Invoice Types

• Configuration

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(1) Manage Supplier Invoices

Security Reference Manual

• Shared Services
Accounts Payable Manager
• Security
Overrides exceptions, analyzes Oracle Fusion Payables balances,
and submits income tax and withholding reports to meet
• Supplier Model regulatory requirements

• Invoice Sources Accounts Payable Specialist

Enters invoices ensuring accuracy, uniqueness, and completeness.
• Invoice Structure Matches invoices to correct purchase orders or receipts ensuring
that invoices comply with company policy

• Invoice Types Accounts Payable Supervisor

Oversees the activities of Accounts Payables Specialists. Initiates
• Configuration and manages pay runs. Resolves non-data entry holds

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(1) Manage Supplier Invoices

• Shared Services

• Security

• Supplier Model

• Invoice Sources

• Invoice Structure

• Invoice Types

• Configuration

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(1) Manage Supplier Invoices

• Shared Services

• Security

• Supplier Model

• Invoice Sources

• Invoice Structure

• Invoice Types

• Configuration

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(1) Manage Supplier Invoices

• Shared Services

• Security

• Supplier Model

• Invoice Sources

• Invoice Structure

• Invoice Types

• Configuration

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(1) Manage Supplier Invoices

• Shared Services

• Security

• Supplier Model

• Invoice Sources

• Invoice Structure

• Invoice Types

• Configuration

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(1) Manage Supplier Invoices
Automatic Offsets

• Shared Services

• Security

• Supplier Model

• Invoice Sources

• Invoice Structure

• Invoice Types

• Configuration
Primary Balancing Segment All Segments, except Natural Account

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(1) Manage Supplier Invoices

 Common Options Use Case – Discussion & Demo

• Shared Services
 Invoice Options • Configuration
• Security  Payment Options
• Create Invoices in different BUs:
 Payment Terms InFusion US1 & InFusion US2
• Supplier Model
 Payables Calendars
• Create Invoices in different Currencies:
• Invoice Sources  Invoice Tolerances EUR & CAD
 Distribution Sets
• Invoice Structure
 Aging Periods

• Invoice Types  Document Sequencing

 Bank Charges
• Configuration  Interest Invoices

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(2) Approve Supplier Invoices

• Invoice Approval

• Account Coding

• Hold Resolution

• Incomplete Invoice (invoice imaging)

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(3) Resolve Invoice Holds

• Types of holds • Control

• Invoice holds • Prevent Payment
• Installment holds • Prevent Accounting
• Supplier Site holds
• System holds • Manual Ways
• Invoice Page > Actions
• Applied • When Voiding Payment
• Automatically • During Import Process
• Manually
• Hold Definition
• Released • Allow Accounting
• Manually • Allow Manual Release
• Fix Exception Condition • Allow Holds Resolution Routing (Workflow)

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(3) Resolve Invoice Holds

Full Matching Match Approval Level

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(3) Resolve Invoice Holds

Use Case Discussion

Non-inventory based service industries like Financial Services, Insurance etc. do not necessarily rely on receipt
and would want their invoices to be validated against the purchase orders. 2-Way Matching is the suitable option.
For the industries where inventory is involved, 3-Way matching is the widely used control. For the industries like
manufacturing / wholesale, where quality check / inspection is of important 4-Way matching should be used.

Demo
• Create PO with 2-Way matching option
• Match Invoice to PO with overbill
• On validation, invoice is automatically placed on hold
• Hold Resolution
• Review Accounting for Invoice Price Variance

• Invoice Corrections
• Match to Receipt Charges
• Freight Allocations

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(4) Credit Memos, (5) Prepayments, (6) Modifications

Use Case Discussion & Demo

• Credit / Debit Memos

– Can be created:
— As a correction to existing invoice (Correct Unmatched Invoices)

— Return to Vendor process (‘Create Debit Memo’ option on the return transaction (or) at supplier level)

– Can be settled:
— Against invoice as part of payment process (single or batch)

— Refund can be recorded

• Prepayments
– Prepaid Expense DR / Liability CR (create prepayment invoice)
– Liability DR / Cash CR (pay prepayment invoice)
– Expense DR / Liability CR (create standard invoice)
– Liability DR / Prepaid Expense CR (apply prepayment)
• Adjustments – Invoice, Line & Distributions adjustments

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(7) Net AP/AR Accounts

• Use the Customer and Supplier Balance Netting feature to enable the automatic
netting of Payables and Receivables transactions within a business enterprise and
issue payments and receipts for the netted amounts
• Netting agreements can be defined that incorporate the netting business rules
(such as transaction selection criteria) to support your payment practices
• The netting process automatically creates the Payables payments and Receivables
receipts required to clear a selected number of Payables and Receivables
transactions
• AR/AP Netting Functionality in Oracle Fusion (Doc ID 2020112.1) & Video

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Use Case: Invoice Imaging

Use Case Scenario

An enterprise receives majority of their supplier invoices as
physical copies. They are looking to automate the end-to-
end invoice processing with minimal manual intervention.

Key Features
• Automated Invoice Image Processing
• Flexible Invoice Format
• Multiple languages supported
• No configuration required
• Separately licensed
• Ability to pass additional information
• Account Coding

Best Practices
Oracle Integrated Invoice Imaging Guide for Cloud

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(8) Issue Payments

• Single Payments
- Quick Payment
- Manual Payment
- Refund

• Batch Payments
- Payment Process Requests

 Printer Setup in Cloud

 Troubleshoot Printer Setup

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(8) Issue Payments: Methods & Formats

Formats
• Pre-seeded Formats
• User-defined Formats
• BI Publisher Template
• XML Data Extracts
• Identity Format (BIP Template)
• Validations

Payment Method
• Validations
• Usage Rules

 Troubleshoot Custom Templates

 How to Gather XML Extract
 Working with Payment Formats
 Document and Payment Validations
 Best Practices: Payments
 Customer Connect: Modify Payment Files
 Customer Connect: Payables Best Practices

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(8) Issue Payments: Bank Model

Bank Model
• Bank
• Bank Branch
• Branch Account

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(8) Issue Payments: Cross BU Payment
Use Case Scenario
InFusion SSC serves as centralized payment unit for all BUs in US
Legal Entity. Payments are done in batch and the payment files are
transferred to BofA’s SFTP server and the suppliers are informed
about the payments.

Key Features
• Automated Batch Payments
• Electronic Transmission
• Cross BU Payments
• Shared Services

Demo
• Payment Methods & Formats
• Transmission & Payment Systems
• Payment Process Profiles
• Disbursement System Options
• System Security Options, Bank Accounts
• End to End Process Flow

 Best Practices: Fusion Payments

 PGP Encryption

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(8) Issue Payments: Cross Currency Payment
Use Case Scenario
InFusion has global operations and receives invoices from suppliers in different
currencies, but the payments are made only in USD as per the prior agreements
with the suppliers

Key Features
• Quick Payment
• Cross Currency Payments
• SSC Security
• Intercompany Balancing.

Discussion & Demo

• With cross-currency payments you can:
• Manage your cross-border transactions effectively
• Comply with legal regulations and make payments in the prescribed currency
mandated by the country authorities for the resident supplier
• Save costs by making payments in the most stable currency and avoiding
losses due to currency rate fluctuations

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Use Case: One Time Payment

Use Case Scenario

Financial Services company is looking to centralize all it’s payment
functions in ERP Cloud. They have a third party claims system that tracks
their policy holders information and claim requests. These claim requests
have to be paid out of ERP Cloud and the process needs to be fully
automated with minimal overhead.

Key Features
• One Time Payments
• No additional master data / setup overhead

Discussion & Demo

• Configure Source
• Perform End-to-End process flow

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Payables: New Features (19A – 20B)

• Specify URL attachments when creating invoices using spreadsheet

• Receive and Process Electronic invoices with European Standard
• Disable deletion of attachments for validated or approved invoices
• Positive Pay File Enhancements
• Supplier portal enhancements
• AP/AR Netting
• Multi Period Accounting

More Information at Oracle Cloud Release Readiness

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Summary: Key Concepts Discussed

• Shared Services
• Invoice Configuration & Demo
• Single Payments & Payment Process Requests
• Cross Currency Payments
• Cross BU Payments
• Invoice Imaging & One Time Payments

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