AP - Payables Overview - R12

R12 – Payables – AP

Many changes has been made to AP but all great improvements though.

Overview

• Suppliers: are now defined in Trading Community Architecture – TCA
• Invoice lines: entity added between header and distributions
• Banks and bank accounts: now part of Cash Management
• Banks and branches: are now defined in TCA like suppliers
• Payment document sequence numbers: has been moved to bank account uses
• Payments: moved to and integrated with Payments for funds disbursements
• Accounting: moved to and integrated with Subledger Accounting
• Tax: moved to and integrated with E-Business tax

Suppliers

Supplier entry has moved from the professional screens to OAF screens:

Invoice Lines

The addition of invoice lines enables AP to retain the external representation of an invoice keeping internal accounting on the distribution lines.
So an external invoice with two products would have an invoice header with two invoice lines. If each of the products are split between two departments then the invoice would have four distribution lines.
The invoice lines are added as an extra tab in the invoice workbench:

The representation also ties better in with Purchasing where items are ordered at line level and distributed at shipment level.
The distribution lines are still in a separate screen as in the old days:

Banks, Bank Branches and Banks Accounts

Banks and bank accounts have been split into two parts:

• Bank and bank branches as organisations is now defined in TCA
• Bank accounts as financial information is now defined in Cash Management – CE
• Bank accounts are owned by the legal entity and can now be shared by multiple organisations

More details in the R12 – Cash Management blog entry.

Payments

Payment has been completely revamped and got it’s own module now – Oracle Payments – however the payments screens can still be accessed from Payables if user setup allows.
Payments can also be setup for a central treasury organisation to issue payments from different payables organisations as long as they are all in same legal entity. In the latter case the payables clerk would issue a payment request however the central treasury organisation would issue the payment instruction to the bank.
More details in the R12 – Payments blog entry.

Accounting

The Payables accounting architecture has been changed from being local to AP to utilise the new module Subledger Accounting.
To generate accounting and transfer to GL process itself is not much different however.
Concurrent program “Create Accounting”:

The Invoice Workbench – Create Accounting options matches the Subledger Accounting functionality:

Draft: to create accounting that can be viewed and modified
Final: to create accounting ready for posting to GL
Final Post: to create accounting and immediately post it to GL
All Subledger Accounting is now based on Payables accounting events. These accounting events are predefined in Payables and can be translated into actual accounting by the Subledger Accounting system.
Accounting Events form:

Note this is a standard Subledger Accounting form so it will look similar in other subledgers as well.
How the accounting event to account translation works is described in the blog section: R12 – Subledger Accounting

Tax

The tax architecture has changed from being part local to AP and AR to be a separate module – E-Business Tax.
An invoice still has the same amount of tax lines however new fields has been added like Tax Regime.
The tax regime determines what tax codes are available.
Tax Details form:

This tax architecture is for sales and value added taxes only and does not manage income and withholding tax.
When tax is calculated is determined by tax events similar to accounting events.
Tax Events form:

To determine the tax defaults – AP has a number of predefined tax drivers. This is very different from 11i but gives more flexibility for defaulting based on the type of invoice which is mapped to an event class.
Tax Drivers form:

More details in the R12 E-Business Tax blog entry.