AP/ AR Netting Set ups and transactions

Setups required for AP/AR Netting:

1. Netting control Account:
In GL module
Path: Setup>Financials>Flexfields>Key>Values
Segment qualifier for netting control account = Liability

2. Netting bank, branch and bank account.
Netting flag to be set as yes for the bank account
use netting control account in placeof cash and cash clearing account

Note:
? Reason for defining netting control account.
:) To facilitate us to use it as cash account while defining netting bank account

? Why should you use netting control account in place of netting bank account
:) As you not actually paying or receiving cashwhile you are performing netting

3. Netting receipt class
Receivables module
path: setup>receipts>receipt classes

? Why do we need a netting receipt class
:) To facilitate the system to create a receipt automatically specifying the mode in which we received this receipt as netting

4.Netting Agreement
Canbe created either from payables or receivables
path(AP) payments>netting>netting agreement
path(AR) receipts>netting>netting agreement


5. Netting batch
Picks the invoices and AR transactions to be netted as per the criteria specified in the netting agreement.

6. Submit the netting batch.Review the invoices and transactions picked. Resubmit the batch and viewthe proposed and final netting reports.

Making payments of multiple operating units

Are you trying to make payment of invoices pertaining to multiple operating units having different transacting currencies??

Here is the list of what you need.
1. A bank with multiple currency flag enables. Similarly the check boxes of multi currency payments and multi currency receipts should be enabled.

2. A payment process profile with the payment format specified for the payable documents defined for the bank

3. Exchage rate type and rate defined for the foeign currencies

Transaction part.
1. Raise invoices intherespective OUs
2. create a payment process request via payment manager
3. generate payments

Validate Application Accounting Definition

Unable to create online accounting???

When you are implementing on a fresh instance for you to be able to do the accounting of your transactions. you should run the following request "Validate Application ccounting Definition" request.

Make sure that both in GL and AP the period in which the transactions exist are open.

Cheers.

Invoice currency field grayed out

Invoice currency field grayed out:

I created a multi org with 2 OUs one in the US and the other in India. The currencies are USD and INR respectively. While keying in an invoice, the invoice currency tab is greyed out and only one currency is automatically picked and is not letting me change???

Soulution:

Go to Currency tab in Payable options and enable the check box, multiple currencies. Give the realised gain and relaised loss account and the rounding differences account.

And your problem is solved :)

Release 11i iPayment module now made obsolete with R12

releas11 ipayment module now made obsolete

The module ipayment in release 11 is now made obsolete and all the functionality that could be done earlier is now available via the new module Oracle Payments with effect from release 12.

Oracle Payments concentrates on two processes, broadly stated:
--> Funds Capture Process
--> Funds Disbursement Process

Enhancements in Payables with Release 12

Enhancements in Payables with Release 12

Lets have a brief look at the enhancements in the payables module with release 12
1. Suppliers became a part of Trading Community Architechture(TCA)
2. Banks ownership moved to Legal Entity and now supplier banks can be defined in
supplier definion page it self.
3. The contra charge functionality in R11 is now known as AP Ar Netting
4. Invoice Lines concept and there by line level approval, line level hold, mapping at
line level to asset books or to projects
5. Retainae and Retainage release
6. Recoupment
7. Now batch payments cant be made within payables module but can be dont using the new module oracle payments.

R12 Payables - Hierarchy in which liability account defautls

Hierarchy in which liability account defaults in Oracle Payables

1. Financial Options
2. Supplier
3. Invoice

First the system would look at the accounting details tab of the supplier definition for liability account. If a value is defined for liability account;then this value has precedence to the one provided at financial options.

So when creating an invoice once the supplier(Trading Partner)name is specified the system would look in to the accounting tab of supplier definition. If nothing is specified here, the system would pick the value provided in financial options. Please note that The account provided in financial options would automatically be populated in the suppliers accounting tab; but this can be overridden;

Also note that the one provided at suppliers accounting tab defaults to the invoice created for this supplier but this can be overriden. Only this is you have to select in the menu Folder>Show Field>Liability Account; once the liability account is displayed change liability account that is getting defaulted.