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8/2/2019 NCOAUG 08 SIDER
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Mystery Solved: Pay on Receipt
Melissa Sider
DARC Corporation
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About You
• Current Pay on Receipt users?
• Planning to implement POR?
• Just curious about it?
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Objectives
• Introduce Pay on Receipt
• Identify Set Up Requirements
• Discuss Benefits and Features
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What is Pay on Receipt?
• Oracle Purchasing Function
• Integrates to Payables
•Enables Automatic Creation of Invoices
• Based on Receiving Transactions
• Use Receipt and PO Data
• Matching Rules ensure proper payment
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A.K.A. Pay on Receipt
• This feature is alternately known in Oracle UserGuides as:
– Evaluated Receipt Settlement (ERS)
– Payment on Receipt (POR)
– Self-Billing Invoices (SBI)
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How does it work?
• Receipt transactions trigger invoice creation
– Receipt
– Delivery
– Advance Shipment Notice
– Advance Shipment and Billing Notice
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How does it work?
• Depending on your business needs, you can use Payon Receipt to automatically create invoices for:
– All your vendors; or
– Select vendors; or
– Select Purchase Orders
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How does it work?
• Invoices are generated by running the Pay on ReceiptAutoInvoice and Payables Open Interface Importprocesses.
• Invoices move normally through Approval andPayment processes.
• Process Returns with automatic Debit Memos that arematched to the original Purchase Order.
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How does it work?
• Invoices are consolidated at one of the followinglevels:
– Packing Slip – Triggers one invoice per packing slip
– Receipt – Triggers one invoice per receipt
– Supplier Pay Site – Triggers one invoice per supplierpay site
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How Invoices are Built
• Invoice Amount = Quantity Received X PurchaseOrder 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 theDefault Tax Hierarchy in Payables.
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How Invoices are Built
The invoice number is created in the followingformat ’ERS’– <X> – <Seq#> where:
– ERS is the default prefix for Pay On Receipt invoices
or any prefix specified in the profile optionPO: 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.
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Pay on Receipt Benefits
• Pay on Receipt offers the following benefits:
– Reduce or eliminate paperwork associated with invoicepayment processes
– Reduce the risk of manual data entry errors
– Avoid duplicate entry of invoices
– Ensure that invoices are entered into the system in a timelymanner
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Setting Up Pay on Receipt
• PO: ERS Aging Period
• PO: ERS Invoice Number Prefix
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The Payon 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
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Set Up Supplier SBI
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Set Up Supplier Currency
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Create Purchase Orders
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Run POR AutoInvoice
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Using Payables Batching
• Pay on Receipt supports AP Batching
• Invoice Count and Total are automatically calculated
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Handling Errors
• Two reports assist in identifying and solving errors:
– Purchasing Interface Errors Report
– Payables Open Interface Report
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Tax
• Set up Supplier Site with Automatic Tax Calculationat Line or Tax level
• Tax values inherited from Tax Codes (PO Shipment)
or Default Tax Hierarchy
• Tax is calculated at Invoice Approval or manually inthe Distributions window
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Different Purchasing and Pay Sites
• Set up both sites for Pay on Receipt
• Indicate Pay Site as Alternate Site in the PurchasingSite Self-Billing Region
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Return to Suppliers
• Select Create Debit Memo from RTS Transactioncheckbox in the Supplier Sites window.
• Ensure the Create Debit Memo option is selected in
the Returns window.
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Invoice Inquiry
• Use the ERS Invoice Number Prefix as a startingpoint for searches
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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 APUser Guides
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Q & A