ORACLE PAYABLES FAQs continued

Payables FAQs Continued...

16. What are the types of payment terms?

Immediate, 30days, fixed due date, installments, and proxima.

17. What are holds in payables? How are they defined?

Restriction on the invoice for further processing.

Types: Manual and system holds. User can define any types of holds and can be attached to the invoice to stop further processing.

18. How do you create a foreign currency invoice and a foreign currency payment?

Any invoice that has been created from other than the functional currency.

Steps: In Payables options, in currency tab enable use multiple currencies.

Making foreign currency payment

In the payment format enable multiple currency option and in bank enable multiple currency payments under payable option tab.

19. What are Expenses Report and Expense Report Template?

Invoice created for the expense made by the employee.

Expense report template

Defining default values for expense items, and you can then choose those items from a list of values when you enter expense reports.

20. What are recurring invoices?

A feature that lets you create invoices for an expense that occurs regularly and is not usually invoiced. Monthly rents and lease payments are examples of typical recurring payments.

21. What are the perquisites for entering a Standard Invoice?

Supplier, supplier site, payment term, payment method, distribution set (optional)

22. What are Tax Recovery Rules?

Rules defined for the amount of taxes that has to be recovered which is usually a function of the nature (or intended use) of the taxable item.

23. What are payment formats and payables documents?

Format in which the stationary has to be built (i.e. where the attributes or the contents have to be placed.

Payment document

It is the actual negotiable or the legal document presented to the supplier.

24. What are the types of payment methods?

Check, electronic, wire, clearing, future dated (bill of exchange). Two places where you assign the method one is financials option at supplier payables tab and he override option at supplier site level, payable tab.

25. What are the different types of payment methods?

Manual, quick and refund.

26. What are the different types of taxes used in payables?

Sales use tax, offset, user-defined, withholding tax.

27. What are withholding taxes? How are they applied on invoices in payables?

Used for deducting part of amount from suppliers invoice.

Types:

1. Flat rate: Flat rate for all invoices.

2. Period: Amount is specified for that period, beyond which the tax is not withhold with use of special calendar.

3. Amount: Gross amount--- Invoice and period

4. Withheld amount--- Invoice and period.

28. What are Withholding Exceptions and Certificates?

You define a certificate to specify a rate exception for a Withholding Tax type tax code for all invoices of a supplier site.

Withholding Exceptions

You define exceptions on the applied withholding tax type tax code rate assigned to an invoice number.

29. What is future dated payment method?

Payment of invoice where the due date (maturity date) falls in the future. Example - bill of exchange.

Steps: Enable future date use in the future dated payments tab at the payables document.

30. How do you control accounting periods in payables?

Setup àaccounting à AP accounting periods

There is option of toggling between various statuses. never opened, future, open, closed ,permanently closed.

To be continued in next post....