Invoice Payables Options

1.1 Use Invoice Approval Workflow :  Enable this option if you want to use the Invoice Approval Workflow feature to automate your invoice approval process. The workflow determines if an invoice needs any individuals to approve payment of the invoice, and if so, automatically routes the invoice to designated approvers who then approve or reject the invoice. When you enable this option, almost all invoices must be processed by the Invoice Approval Workflow.

You cannot submit the Invoice Approval Workflow Program unless you enable this option.

1.2 Allow Force Approval: Enable this option if you use the Invoice Approval Workflow Program and want to allow accounts payable processors to override the workflow and manually approve invoices by using the Force Approval option in the Invoice Actions window. You might want to force approve an invoice if the Invoice Approval Workflow does not complete for an invoice, or if you have authority to pay an invoice without using the workflow process.

1.3 Require Validation Before Approval : If you enable this option, then Invoice Approval Workflow does not select any invoice for processing unless the invoice status is Validated. You might want to enable this option if you need the Invoice Validation process to create tax distributions for an invoice before approvers review it.
You cannot enable this option unless you first enable the Use Invoice Approval Workflow Payables option.

2.1 Allow Adjustments to Paid Invoices: Enable this option if you want to allow users to update the distributions of a paid invoice. If you enable this option you can also reverse a match to a purchase order document and then match to another purchase order document that is not final matched. This means you could create a distribution variance on a paid invoice if you do not ensure the distributions total equals the invoice amount when you do your invoice adjustments. You would discover this possible error when you submit Invoice Validation because Invoice Validation would place a Distribution Variance hold on the invoice and prevent you from creating accounting entries for the invoice.

2.2 Recalculate Scheduled Payment: Payables calculates scheduled payments using a start date and payment terms. For example, if the start date is 01–JAN–2002 and the payment terms are Net 30, the invoice will be payable in full on 30–JAN–2002. During invoice entry, Payables automatically calculates scheduled payments for invoices using the invoice payment terms, and the invoice terms date as the start date.

If you enable the Recalculate Scheduled Payment Payables option, Payables automatically recalculates scheduled payments of invoices during Invoice Validation, unless you have manually updated any of the scheduled payments or used the Split Schedule functionality. During recalculation, Payables uses the most recent of the available start date options and the most favorable of the available payment terms options so you can optimize your cash flow. Payables determines which payment terms are more favorable by comparing the rank you assigned to the terms in the Payment Terms window. The following table shows which options Payables uses during the recalculation. The available options are different depending on whether the invoice is purchase order matched.

3.Automatically Create Freight Distribution: If you enable this option, Payables checks the Create Freight Distribution check box in the Invoices window and automatically creates a single freight distribution using the Freight Amount and Freight Account you enter for an invoice. If you usually allocate freight to invoice distributions, or enter freight distributions manually, then do not enable this option.
Freight Account. If you enable the Automatically Create Freight Distribution Payables option, you must enter a freight account.

Payables uses this account as the default freight account for an invoice. You can override this account during invoice entry.
The system uses the value you enter here for all freight charges your suppliers enter online in Oracle iSupplier Portal. If you do not enter a value here then the system prorates freight charges across Item lines on iSupplier Portal invoices. The system uses the value you enter here for all freight charges your suppliers send in XML invoices. If you do not enter a value here then the import prorates freight charges across Item lines on XML invoices.

4.1 Confirm Date as Invoice Number: If you enable this option, then during invoice entry when you accept the invoice date as the default for invoice number, Payables displays a pop–up window that reads, ”Use the Invoice Date as the Invoice Number?”.

4.2 Allow Online Validation: Enable this option if you want to allow users to select Invoice Validation from the Invoice Actions window or choose the Validate button in the Invoice Batches window.

4.3 Allow Document Category Override: Enable this option if you want to allow users to override the default Document Category assigned to an invoice by Payables. Payables automatically assigns a document category to an invoice if your Sequential Numbering profile option is Partially Used or Always Used. Payables predefines a document category for each invoice type. Your system administrator can define additional document categories for an invoice type.

If your Sequential Numbering profile option is Not Used, Payables does not assign a document category to an invoice and you cannot enable this option, or enter a document category for an invoice.

5. GL Date Basis: The date you want Payables to use as the default accounting date for invoices during invoice entry.

•  Invoice Date. Invoice date you enter during invoice entry.
•  System Date. Current date for your Payables system. The date you enter the invoice.
•  Goods Received/Invoice Date. Date that you enter in the Date Goods Received field. If no value is entered, then the invoice date is used.
•  Goods Received/System Date. Date that you enter in the Date Goods Received field. If no value is entered, then the system date is used.
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6.1 Prepayment Payment Terms: Payment terms that you want to use for all prepayments. For example, you may want to have immediate payment terms for all prepayment type invoices. Note that this value does not exist at the supplier or supplier site level; the value you enter here defaults to all prepayment invoices.

6.2 Prepayment Settlement Days: Number of days you want Payables to add to the system date to calculate a default settlement date for a prepayment. Payables prevents you from applying the prepayment to an invoice until on or after the settlement date. If you do not enter a value here, then Payables will default the supplier site value for invoice payment terms to prepayments you enter.

6.3 Build Prepayment Accounts When Matching: If you enable this option, then when you match a prepayment to a purchase order or receipt, Payables builds the account on each prepayment Item distribution using:

•  the natural (charge) account segment from the supplier site’s prepayment account, and
•  all other account segments from the corresponding purchase order or receipt distribution. Payables validates the built account, and if the resulting GL account is not valid and active, then Payables instead defaults the supplier site’s prepayment account. Therefore, if you use this option, you might have some Item distributions that use a built account and some that use the supplier site’s prepayment account, even on the same invoice.
• If you do not enable this option then Payables always defaults the supplier site’s prepayment account to prepayment Item distributions.

Expense Report Payables Options
Default Template The default expense report template that you want to use in the Payables Expense Reports window. You can override this value in the Expense Reports window. A default expense report template appears in the Expense Reports window only if the expense report template is active.

Payment Terms Payment terms you want to assign to any suppliers that you create from employees during Expense Report Import.
Suggestion: Define and assign immediate payment terms for your employee suppliers.

Pay Group Pay Group you want to assign to any suppliers that you create from employees during Expense Report Import. You can define additional values for Pay Group in the Purchasing Lookups window.

Payment Priority Payment priority you want to assign to any suppliers that you create from employees during Expense Report
Import. A number, between 1 (high) and 99 (low), which represents the priority of payment for a supplier.

Apply Advances Default value for the Apply Advances option in the Expense Reports window in Payables. If you enable this option,
Payables applies advances to employee expense reports if the employee has any outstanding, available advances. You can override this default during expense report entry.
If you use Internet Expenses and you enable this option, then Expense Report Import applies all outstanding, available advances, starting with the oldest, up to the amount of the Internet expense report.

Automatically Create Employee as Supplier If you enable this option, when you import Payables expense reports, Payables automatically creates a supplier for any expense report where an employee does not already exist as a supplier. If the supplier site you are paying (HOME or OFFICE) does not yet exist, Payables adds the supplier site to an existing supplier. Payables creates a HOME or OFFICE supplier site with the appropriate address, depending on where you are paying the expense report. The Home address is from the PER_ADDRESSES table, and the Office address is from the HR_LOCATIONS table.

Payables creates suppliers based on the defaults you select in this region and employee information from the Enter Person window. You can review suppliers and adjust any defaults in the Suppliers window.

If you do not enable this option, enter an employee as a supplier in the Suppliers window and link the Employee Name/Number to the
supplier before you use Expense Report Import. Payables cannot import expense reports without corresponding suppliers, and lists
them on the Exceptions section of the Expense Report Import Report.

Hold Unmatched Expense Reports This option defaults to the Hold Unmatched Invoices option for the supplier and supplier site for any suppliers Payables creates during Expense Report Import.
When Hold Unmatched Invoices for a supplier site is enabled, Payables requires that you match each invoice for the supplier site to
either a purchase order or receipt. If you enable this option for a site, then Payables applies a Matching Required hold to an invoice if it has Item type distributions that are not matched to a purchase order or receipt. Payables applies the hold to the invoice during Invoice Validation. You cannot pay the invoice until you release the hold. You can release this hold by matching the invoice to a purchase order or receipt and resubmitting Invoice Validation, or you can manually release the hold in the Holds window of the Invoice Workbench.

Payables will not apply a hold if the sum of the invoice distributions by accounting code combination is zero.

Allow Interest Invoices: Enable this option if you want to allow Payables to calculate interest for overdue invoices and create interest invoices for selected suppliers. Payables automatically creates interest invoices when you pay overdue invoices in a payment batch or with a Quick payment. If you pay an overdue invoice using a manual payment, Payables warns you that interest is due on the invoice and you should pay the invoice in a payment batch or with a Quick payment.

If you enable this option, the setting of the Prorate Across Overdue Invoice option below indicates how you want Payables to account for interest invoices.
When you enable the Allow Interest Invoices Payables option, Payables enables the Allow Interest Invoices option in the Payment Region of the Suppliers window for all new suppliers you enter. You can override this default value at any time. If you do not enable the Allow Interest Invoices Payables option, you cannot enable the Allow Interest Invoices option in the Suppliers window.

Prorate Across Overdue Invoice: If you enable this option, Payables prorates the interest amount across the item distributions on the overdue invoice. It then builds the account for each interest invoice distribution by using

• the natural (charge) account segment from the interest invoice expense account that you enter below, and
• all other account segments from the corresponding item distribution of the overdue invoice.
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If your enterprise is a United States agency that uses USSGL transaction codes, then Payables also copies the USSGL transaction
codes from the item distributions on the overdue invoice to the item distributions on the interest invoice.
If you do not enable this option then Payables creates interest invoices with one distribution and the expense interest invoice account.

Expense Interest Invoice Account: If the Prorate Across Overdue Invoice option is disabled then when Payables creates an interest invoice it creates a single distribution with this account. If the Prorate Across Overdue Invoice option is enabled then Payables uses the natural (charge) account from the account you enter here when it builds expense accounts for an interest invoice.

Liability Interest Invoice Account: If you enable the Allow Interest Invoices option, you must enter a liability account. Payables uses this account as the liability account when it creates accounting entries for interest invoices. This liability account is always used when interest invoices are automatically created during the payment process. Payables does not overwrite the liability account if you use Automatic Offsets.

Withholding Tax Payables Options

Use Withholding Tax. Select this option to enable Automatic Withholding Tax. If you enable this option, you have the option to allow your suppliers and supplier sites to be subject to withholding tax.

Allow Manual Withholding. Enable this option to allow manual creation and adjustments of Withholding Tax type distributions for your invoices.

Tax Group. The name of the withholding tax group that you would like to use as the default withholding tax group for the new suppliers you enter.

Apply Withholding Tax. Select the time at which you would like Payables to apply withholding taxes to your supplier's invoices:

• Never.
• At Invoice Validation Time. Note: If Payables withholds tax at Invoice Validation, it calculates withholding only once. If you adjust an invoice after you submit Invoice Validation, then you need to manually adjust the withholding tax.
• At Payment Time. When you create payments in a payment batch or with a Quick payment.

Withholding Amount Basis.

• Include Discount Amount. Payables includes the invoice discount amount when it calculates withholding tax amounts for the invoice.
• Include Tax Amount. Payables includes the invoice tax amount when it calculates withholding tax amounts for the invoice.

Create Withholding Invoice. Select the time at which you would like Payables to automatically create withholding tax invoices to remit withheld taxes to tax authorities:

• Never. You can create a withholding type tax code without entering a tax authority. However, if you change to an option other than Never, you will need to manually ensure that each withholding type tax code has an associated tax authority.
• At Invoice Validation Time.
• At Payment Time.

Include Income Tax Type on Withholding Distributions. If you enable this option then you can report on federal income tax withheld (MISC4) for 1099 suppliers.
When this option is enabled, then when Payables automatically creates distributions of type Withholding Tax for 1099 reportable suppliers, Payables automatically provides the following values:
Income Tax Type value of MISC4.
Income Tax Region value, if the Combined Filing Payables option is enabled.
Note: Payables provides these values only for distributions it creates automatically. If you create a Withholding Tax distribution manually, then you need to enter these values manually.

When you enable this option, Payables initiates the Update 1099 Withholding Tax Distributions program, which updates these values on existing Withholding Tax distributions. The program selects distributions to update as follows:

If the current date is before March 1 of the current calendar year then the program updates distributions with a payment date of January 1 of the previous calendar year or later.
If the current date is March 1 of the current calendar year or later, then the program updates distributions that have a payment date of January 1 of the current year or later.