Document

Report
Mystery Solved: Pay on Receipt
Melissa Sider
DARC Corporation
About You
• Current Pay on Receipt users?
• Planning to implement POR?
• Just curious about it?
Objectives
• Introduce Pay on Receipt
• Identify Set Up Requirements
• Discuss Benefits and Features
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
A.K.A. Pay on Receipt
• This feature is alternately known in Oracle User
Guides as:
– Evaluated Receipt Settlement (ERS)
– Payment on Receipt (POR)
– Self-Billing Invoices (SBI)
How does it work?
• Receipt transactions trigger invoice creation
– Receipt
– Delivery
– Advance Shipment Notice
– Advance Shipment and Billing Notice
How does it work?
• Depending on your business needs, you can use Pay
on Receipt to automatically create invoices for:
– All your vendors; or
– Select vendors; or
– Select Purchase Orders
How does it work?
• Invoices are generated by running the Pay on Receipt
AutoInvoice and Payables Open Interface Import
processes.
• Invoices move normally through Approval and
Payment processes.
• Process Returns with automatic Debit Memos that are
matched to the original Purchase Order.
How does it work?
• Invoices are consolidated at one of the following
levels:
– Packing Slip – Triggers one invoice per packing slip
– Receipt – Triggers one invoice per receipt
– Supplier Pay Site – Triggers one invoice per supplier
pay site
How Invoices are Built
• Invoice Amount = Quantity Received X Purchase
Order 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 the
Default Tax Hierarchy in Payables.
How Invoices are Built
The invoice number is created in the following
format ’ERS’–<X>–<Seq#> where:
– ERS is the default prefix for Pay On Receipt invoices
or any prefix specified in the profile option PO: 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.
Pay on Receipt Benefits
• Pay on Receipt offers the following benefits:
– Reduce or eliminate paperwork associated with invoice
payment processes
– Reduce the risk of manual data entry errors
– Avoid duplicate entry of invoices
– Ensure that invoices are entered into the system in a timely
manner
Setting Up Pay on Receipt
• PO: ERS Aging Period
• PO: ERS Invoice Number Prefix
$
The Pay
on Receipt
Process
Supply Base
Manager
Sets Supplier Options
for Pay on Receipt
$
$
Supplier
Purchasing
Creates Purchase Order
using POR Supplier
Ships Goods
Goods Returned
to Supplier
RTS
Goods Delivered
to Inventory
Inventory
Quality Assurance
Receiving
Inspects Goods
Receives Goods
Invoice Created via
AutoInvoice Process
$
Debit Memo Created
$
Accounts Payable
Pay to
$
Payment to Supplier
Set Up Supplier SBI
Set Up Supplier Currency
Create Purchase Orders
Run POR AutoInvoice
Using Payables Batching
• Pay on Receipt supports AP Batching
• Invoice Count and Total are automatically calculated
Handling Errors
• Two reports assist in identifying and solving errors:
– Purchasing Interface Errors Report
– Payables Open Interface Report
Tax
• Set up Supplier Site with Automatic Tax Calculation
at Line or Tax level
• Tax values inherited from Tax Codes (PO Shipment)
or Default Tax Hierarchy
• Tax is calculated at Invoice Approval or manually in
the Distributions window
Different Purchasing and Pay Sites
• Set up both sites for Pay on Receipt
• Indicate Pay Site as Alternate Site in the Purchasing
Site Self-Billing Region
Return to Suppliers
• Select Create Debit Memo from RTS Transaction
checkbox in the Supplier Sites window.
• Ensure the Create Debit Memo option is selected in
the Returns window.
Invoice Inquiry
• Use the ERS Invoice Number Prefix as a starting
point for searches
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 AP
User Guides
Q&A
[email protected]

similar documents