White Paper on Integration of Payables with Assets, Projects, Purchasing, Property Manager, Grants Accounting, and Inventory

White Paper on Integration of Payables with Assets, Projects, Purchasing, Property Manager, Grants Accounting, and Inventory

IntegrationPayables

Encumbrance Accounting – Setup And Usage

1. What are the setups required to have encumbrance accounting in 11i and R12 architecture?

For 11i:
a) Enable the check box for PO encumbrance,INVOICE encumbrance and REQ encumbrance (if required) with unique encumbrance types for REQ,PO and INVOICE.
Navigation: Purchasing > Setup > Organization > Financial Options > Encumbrance tab

b) Enable the Budgetary Control flag and define the Reserve For Encumbrance (RFE) a/c for the Set of Books.
Navigation: General Ledger > Setup > Financials > Books > Define

c) It is preferred to enable the ‘Reverse Encumbrance’ check box in Inventory > Setup > Organization > Parameters > Costing tab and define the Encumbrance account in Other Accounts tab if requisitions/purchase orders are created with inventory destination for inventory asset items in encumbered environment.

d) Purchasing period under which the GL date of purchasing document falls and AP period under which the GL date of invoice falls should be in Open status.

For R12:
a) Enable the check box for PO encumbrance,INVOICE encumbrance and REQ encumbrance (if required).
Navigation: Purchasing > Setup > Organization > Financial Options > Encumbrance tab
In R12 architecture, the encumbrance types cannot be specified here as the system takes the following values by default.
REQ – Commitment
PO – Obligation
INVOICE – Invoice

b) Ensure that the seeded encumbrance types – Commitment,Obligation and Invoice are enabled in General Ledger > Setup > Journal > Encumbrances

c) Enable the Budgetary Control flag and define the Reserve For Encumbrance (RFE) a/c for the Ledger
Navigation: General Ledger > Setup > Financials > Accounting Setup Manager (ASM) > Accounting Setups
Perform the same setup for Secondary ledger if encumbrance needs to be used for secondary ledger

d) Ensure that the Sub-ledger Accounting Method (SLAM) defined in ASM has encumbrance related Application Accounting Definition (AAD) for the application Purchasing,Payables and Cost Management
For eg: Purchasing Encumbrance Application Accounting Definition, Encumbrance Accrual and Cost Management Encumbrance Application Accounting Definition
Navigation: Cost Management,SLA > SLA > Accounting Setup > Accounting Methods Builder > Methods and Definition > Subledger Accounting Methods > Query the SLAM defined in ASM and verify the AAD for those applications.
Perform the same setup for Secondary ledger if encumbrance needs to be used for secondary ledger

e) Enabling the ‘Reverse Encumbrance’ check box is preferred in R12 also which is already explained under 11i setups.

f) Purchasing period under which the GL date of purchasing document falls and AP period under which the GL date of invoice falls should be in Open status.

2. What are the minimum setups required to have federal budgeting in R12 SLA architecture?
3. a) The profile optionFV:Federal Enabledshould be set to Yes

   b) The Sub-ledger Accounting Method defined in Accounting Set up Manager should have Federal related Application Accounting Definition for the application Purchasing,Payables,Cost Management and Federal Financials.
   For eg: Federal Purchasing Application Accounting Definition,Federal Payables AAD,Federal Costing Application Accounting Definition
   Navigation: Cost Management,SLA > SLA > Accounting Setup > Accounting Methods Builder > Methods and Definition > Subledger Accounting Methods > Query the SLAM defined in ASM and verify the AAD for those applications.
   Perform the same setup for Secondary ledger if encumbrance needs to be used for secondary ledger.

4. Can I switch from a non Encumbrance environment to an Encumbrance environment and vice versa?

The decision to enable Encumbrance is a one time decision that must be made at time of implementation. Because of enormous data corruption that arise when encumbrance is switched on or off after implementation, Development strongly warns customers not to engage in this practice since they do so at their own risk .
It is clearly documented in Payables User Guide that before switching Encumbrance flags, Customer has to close all the existing POs. Customers who do not abide by this provision and still move ahead with switching the Encumbrance flags do so at their own risk .
Development knows the risks involved in moving ahead with workarounds and will not provide a data fix due to the potential for severe and unrecoverable data corruption.
Development only advice is to final close/cancel all the existing PRs/POs through the Application to ensure the best audit trail and best data integrity before switching off/on the encumbrance.

Following points need to be done before switching encumbrance

1. Final close all the open PRs/POs
2. If any PO is partially received/billed, either receive and invoice the entire ordered qty or cancel the PO
3. Perform the Create Accounting-Cost Management, Transfer to GL and Posting to create the accounting entries in SLA and GL for the PO receipts already created
4. If any invoice is already matched to the PO/Receipt, validate it and account it and transfer the entries to GL
5. If any invoice is in validated status but not accounted, perform Create Accounting, Transfer to GL and Posting to create the accounting entries in SLA and GL

Note: It is not possible to disable the encumbrance for PO and Invoice in Financial Options if Grants Accounting is used

4. What points need to be taken care before switching from non encumbrance to encumbrance environment and vice versa for Requisitions?

All the open PRs need to be finally closed. There should not be any PR left for doing the Autocreate action while switching the encumbrance for Requisitions.

5. What is the impact if encumbrance types for REQ/PO/INVOICE are changed in between when transactions exist? (Applicable for 11i only)

Scenario: Assume that the PO and Invoice have the same encumbrance type defined as “Obligation”. Now you may want to change the invoice encumbrance type from “Obligation” to “Invoice”

1. a) Active encumbrance may exist for the purchasing documents if the encumbrance type is changed in between in-spite of PO being received/billed/canceled/finally closed
   b) GL reports and Accounts Inquiry form will show an encumbrance balance when encumbrance accounts are verified based on encumbrance types

   Following points need to be ensured before changing the encumbrance types

   a) There should not be any Requisitions or Purchase Orders in open status. Either it should be received/billed and accountedor it should be canceled/finally closed
   b) There should not be any validated invoices which are left unaccounted. It should be validated as well as accounted and transferred to GL.

Note: It is not possible to have same encumbrance types for PO and Invoice when Grants Accounting is used

6. What needs to be done before changing the Sub-ledger Accounting Method (SLAM) from Standard Accrual to Encumbrance Accrual or vice versa? (Applicable for R12 architecture only)
7. a) Cancel/Final close all the open PRs/POs
   b) Perform the Receipt Accruals-Period end process and Create Accounting process and transfer the entries to GL for the receipts already created
   c) Validate and perform Create Accounting for all the invoices and transfer the entries to GL

   Also refer to the points given under question 3 for more details.

8. How to prevent PR/PO getting into approval workflow process when there are insufficient funds/ How to prevent PR/PO getting into pre-approved status because of insufficient funds?

Enable the “Reserve” check box before submitting the document for approval so that system will throw the message “Your budgetary control exception failed with exceptions” and it will not go through the approval process as it gets stuck in Incomplete status.

8. How to make the RESERVE check box in Approval form enabled automatically?

As per the current functionality, Reserve checkbox cannot be automatically checked. Enhancement Request 3381444 exists for this suggestion. As a workaround, you can do form personalization to enable the Reserve checkbox by default

9. What is the significance of ‘Reserve at completion’ flag available under Purchasing > Setup > Organization > Financial options > Encumbrance tab?

If “Reserve at Completion” is checked, the functionality allows the users/preparer to take Reserve action on the Requisition before it is submitted for approval . In this case the ‘Reserve’ checkbox is enabled in the approval window for Requisition.

If “Reserve at Completion” is unchecked, the functionality prevents users/preparer from taking Reserve action on the Requisition before it is submitted for approval. This keeps the system from reducing the Budget (by reserving a Requistion) before it knows whether it is going to be approved or not.
In this case, the reservation does not occur until the required approver (or approvers) have approved the requisition. This is implemented by disabling the ‘Reserve’ checkbox in the approval window for Requisition – thus forcing the user to submit the requisition for approval without reserving and then letting the approval workflow do the reservation after all approvers have given their approval for the requisition.

This flag can only be checked if ‘Use Requisition Encumbrance’ is checked on the same screen .

If either ‘Reserve at Completion’ is No, then the RESERVE checkbox in document approval form will be disabled.

1. How to reserve the funds for a purchasing document in a future period? / How to reserve the funds for a purchasing document which has a GL date falling under closed GL period?

Scenario 1: PR/PO would have been created in Mar-10 with GL date falling under Mar-10 and submitted for approval. But the approver approves the PR/PO in Apr-10 and Mar-10 GL period got closed at that time.
Scenario 2: PR/PO is created with multiple distributions each having GL date falling under current period and next 2 future periods to block the funds in the future period.
As per the standard functionality, encumbrance entries will get created if the GL date of document on which the reserve action is taken falls under open purchasing period and Open GL period. If the document has to be reserved in Future/Closed GL period, then the profile option PO:Validate GL period needs to be set as NO so that GL period will not be validated and system will reserve the document which has a GL date in distributions falling in future or closed GL periods. But the PO period should be opened irrespective of this profile value to reserve the funds and to create the encumbrance entries.
Note: If this profile option has a null value also, you would not be able to reserve funds in future/closed GL period.

1. How to reserve the purchasing documents using override limit when there are insufficient funds when the approval is done through forms?

As per the standard functionality, purchasing documents will fail funds check when ‘Absolute’  funds check level is used if funds are insufficient. If you want to have override limit for one particular user so that he can reserve the purchasing document, override amount has to be specified under Budgetary Control Group in GL > Budget > Define > Controls. To reserve the document using this override amount, the profile optionPO:Override funds reservation should be set to Yes or the option ‘Use GL Override’ available in document approval form should be enabled manually. Otherwise this override authority will not take into effect.

2. How to reserve the purchasing documents using override limit when there are insufficient funds when the approval is done through notification summary?

When override amount is specified under Budgetary Control Group, the purchasing document can be reserved and approved from the notification summary by setting the profile option PO:Override funds reservation to Yes even though there are insufficient funds.
When the profile option PO:Override funds reservation is set to No, purchasing document will fail funds check inspite of override amount specified under budgetary control group when the approval action is taken from notification summary. In this case, the user has no option to check the ‘Use GL Override’ check box as this option would be available only in forms. Hence system will throw the ‘Unable to Reserve’ notification letting the approver know that funds reservation was unsuccessful and the document will go to Pre-approved status.Still the document can be reserved and approved using the Try Override option when the approval action is taken from the notification by the user who has the override limit.

3. What set up is required to have the option “Use GL Override” enabled while approving the purchasing documents?
4. a) When the profile option PO:Override funds reservation is set to Yes, this option “Use GL Override” will get enabled by default once the RESERVE check box is checked. This indicates that the purchasing document can be reserved and approved using override limit when funds are insufficient. If this profile option is set to No, then this option “Use GL Override” will not get enabled automatically. But you can manually enable the check box to reserve the document using override limit.
   b) If the ‘Reserve at Completion’ flag is set to NO, this check box will be unchecked and will not be available for change on the document approval form.
5. What are the different look up codes in gl_bc_packets and what is the significance of those codes?

Please refer to Note.399068.1 to know the different look up codes available in gl_bc_packets and to understand the significance of those codes.

5. Purchasing documents get reserved successfully and encumbrance entries get recorded even though the budget account used in the document is not defined in the budget organization and has no budget allocated. Why does it happen?

This is the current functionality of the product. Reservations are made as long as funds checking does not fail. If the budget account is not defined in the budget organization and no budget is allocated, then the funds checking call will always pass and the detail result message will be P01- This account does not require funds check.
Although the accounting transactions are created and captured, they do not impact any budget and do not cause any problems.
Additionally, this behavior can be useful, as it allows money spent for a specific account to be tracked via the Funds Available Inquiry for (GLXIQFUN.FMB) even though no budgetary control is assigned to the account.

6. What are the encumbrance accounting entries that get created from reserving the requisition till the purchase order auto created from this requisition is approved?

Reserve Requisition:

Budget a/c DR @ (PR Ordered qty * Unit Price * Rate) + Non-Recoverable tax – REQ encumbrance type
RFE a/c CR @ (PR Ordered qty * Unit Price * Rate) + Non-Recoverable tax

Auto create Requisition into Purchase Order and approve the PO:

Budget a/c CR @ (PR Ordered qty * Unit Price * Rate) + Non-Recoverable tax – REQ encumbrance type
RFE a/c DR @ (PR Ordered qty * Unit Price * Rate) + Non-Recoverable tax

Budget a/c DR @ (PO Ordered qty * Unit Price * Rate) + Non-Recoverable tax – PO encumbrance type
RFE a/c CR @ (PO Ordered qty * Unit Price * Rate) + Non-Recoverable tax

7. What are the encumbrance accounting entries that get created from approving the purchase order till it is received and billed?

Please refer to Note.386807.1 to understand the encumbrance accounting flow that gets created from approving the purchase order till it is received and billed.

8. How to unreserve the purchasing document in the same period in which the document originally got reserved? / How to get the encumbrance reversal for a purchasing document in the same period in which the encumbrance got created originally?

As per the standard functionality, when an unreserve action is taken for a purchasing document, encumbrance reversal will happen in current GL period considering the system date. If you want the reversal to happen in the same period in which the document originally got reserved, you can use the check box “Use Document GL to Unreserve” so that the reversal will happen based on GL date entered in PR/PO distributions.
This check box would be available only when doing Unreserve/Cancel/Final close where you can manually enable it and get the encumbrance reversal in the same period in which it got created. But if you perform a Reject action on the PO or Return the PR or delete the lines which are in Incomplete,Reserved status, this check box would not be available. In such cases, you may need to set the profile option PO:Use Document GL to Unreserve to Yes so that the encumbrance reversal will happen automatically in the same period in which it got created.

Note: This unreserve action or the encumbrance reversal will happen based on the GL date of purchasing documents only when that past PO period and past GL period are in Open status. If that PO/GL period is already closed, then the reversal would happen only in the current period based on system date inspite of this profile option being set to Yes. But if the profile option PO:Validate GL period is set to No, then the reversal would happen in that past period even if the GL period is closed provided the PO period is opened.

9. What is the impact if the purchasing document is unreserved/canceled/finally closed/rejected in a different period from the one in which it got reserved?

If the purchasing document is unreserved in a different period from the one in which it got reserved, encumbrance reversal would get created in the current period resulting in negative encumbrance leading to sudden increase in funds availability. If Encumbrance Carry forward activity is done to move the encumbrance balance of previous year to current year, then there is no impact because of unreserving the document in a different period. But this carry forward feature is applicable for users having YTD as the amount type in budget organization. If PTD or QTD is used, then you may need to unreserve the documents in the same period to avoid negative encumbrance.

1. Is there any report to see the open encumbrance or active encumbrance for the purchasing documents?

Encumbrance Detailed Report can be used to see the active encumbrance existing on all purchasing documents created and reserved during a particular period or for a specific document type. This report has the following parameters.

a) Accounts from and to – You can specify the encumbrance/budget account for which you want to see the active encumbrance
b) Encumbrance dates from and to – You can specify the GL dates in which the purchasing documents are created and reserved
c) Document type – Requisitions and Purchase orders which can list the active encumbrance for all commitments created from Requisitions and all Obligations created from Purchase orders respectively
d) Vendors from and to – You can specify the vendor to see the active encumbrance existing for purchasing documents created against those vendors

This report will not show the POs that are canceled or finally closed but having active encumbrance (due to code bug or data corruption) or POs having negative active encumbrance caused by any bugs/data corruption.

1. Why does the encumbered amount in Purchase Order distributions not showing 0 value even when the purchase order is canceled or finally closed?

Encumbered amount in Purchase Order distributions will not become 0 on canceling or final closing the purchase order under the following scenarios

a) When the PO is set to accrue at receipt and it is received and delivered before taking the cancel or final close action
b) When the PO is set to accrue at period end and it is billed before taking the cancel or final close action

When the PO is received or billed, the encumbered amount gets consumed and gets converted to Actuals. Since the funds reserved for this PO is used already, encumbered amount will not become 0. But the active encumbrance for this PO should be 0. For more details on Encumbered amount and Active encumbrance, please refer to Note.742621.1.

2. Under what situation encumbrance created on the Purchase Order goes back to the budget or funds availability?
3. a) When the purchase order is canceled/finally closed/unreserved/rejected without performing any receipt or invoice
   b) When the purchase order is set to accrue at receipt and partially received and then canceled/finally closed/unreserved, encumbrance goes back to the budget to the extent of unreceived amount
   c) When the purchase order is set to accrue at period end and partially billed and then canceled/finally closed/unreserved, encumbrance goes back to the budget to the extent of unbilled amount
4. Does Alternate account work with encumbrance accounting?

Let us say, XXXX account is used as a budget account in PR/PO and the purchasing document is reserved and approved. Then this XXXX account is end dated and alternate account YYYY is defined in GL. Now perform a PO receipt and transfer the accounting entries to GL or match the invoice to the PO and validate the invoice. Or take some unreserve action on the purchasing document. System will throw error and alternate account cannot be used in any of the transactions performed after end dating the budget account as alternate account does not work with encumbrance accounting.

24.What reference columns in GL_JE_LINES are populated for encumbrance entries created from Purchasing in 11i?

Budgetary (encumbrance) actions in the purchasing module generate records that will be imported into
General Ledger (GL_JE_LINES) as encumbrance entries.
The following reference fields are used to capture and keep PO information in the GL_JE_LINES table.
These reference fields are populated when the Journal source (JE_SOURCE in GL_JE_HEADERS) is
Purchasing.

Budgetary Records from PO (These include reservations, reversals and cancellations):

REFERENCE_1- Source (PO or REQ)
REFERENCE_2- PO Header ID or Requisition Header ID (from po_headers_all.po_header_id or
po_requisition_headers_all.requisition_header_id)
REFERENCE_3- Distribution ID (from po_distributions_all.po_distribution_id or
po_req_distributions_all.distribution_id)
REFERENCE_4- Purchase Order or Requisition number (from po_headers_all.segment1 or
po_requisition_headers_all.segment1)
REFERENCE_5- (Autocreated Purchase Orders only) Backing requisition number (from
po_requisition_headers_all.segment1)

Note: This is applicable only in 11i and not for R12 architecture

5. What are the standard features that cannot be used in encumbered environment?
6. a) PR/PO created with shop floor destination cannot be reserved.

Note: From R12.1.3 onwards, this feature is available for PR/PO created with shop floor destination with EAM enabled ship to organization can be reserved

1. b) Consigned/VMI transactions cannot be done when encumbrance is enabled or the vice versa.

   c) Global Procurement cannot be done when encumbrance is enabled.

   d) Encumbrance accounting cannot happen in Process enabled organization/ OPM does not support encumbrance

2. Which is the account used for RESERVATIONS in PO_DISTRIBUTIONS_ALL and PO_REQ_DISTRIBUTIONS_ALL for Expense transactions?

Funds are always reserved against the Budget account, which is an account type of EXPENSE.

7. Can the four distribution accounts on a PO or REQ distributions have the same Code Combination ID ( CCID)?
8. Accrual account should be of an account type of LIABILITY
   Budget account is an account type of EXPENSE.
   Charge account is generally an EXPENSE type .
   Expense Account can be capitalized to be an Asset Type.
   For an Expense item, the Charge, Budget and Variance account are always the same.
   What is the Account Type of a RECEIVING Account?

   Receiving account is of an account type = ASSET.

9. What does the abbrevation RFE stand for , and how can these Journals be identified in GL_JE_LINES?

The RFE is RESERVE for ENCUMBRANCE account which is an OffSetting account for all Encumbrance Journals .
These RFE journals maybe grouped for all JE_SOURCE and JE_CATEGORY . This Journal line can be identified
from the column description in the GL_JE_LINES having this Entry.’Reserve for Encumbrance line added by
Posting’ and these lines will NOT have any of these REFERENCE COLUMNS ( 1 to 5) Populated.

9. What are the Possible values for the column FUNDS_CHECK_LEVEL and what do they mean?

B = Absolute , Meaning = Strict budgetary control
D = Advisory Meaning = Warning messages only
N = None Meaning = No budgetary control

1. What are the different Account Type Values that exist and what do they stand for?

A = Asset
E = Expense
L = Liability
O = Owners’ equity
R = Revenue

1. What does the values in the column ACCOUNT_CATEGORY_CODE in GL_BC_PACKETS stand for?

B =Budgetary
P =Proprietary

1. What are the possible values in the Column FAILED_FUNDS_LOOKUP_CODE in PO_REQ_DISTRIBUTIONS_ALL and PO_DISTRIBUTIONS_ALL and what do they stand for?

F00 Insufficient funds (detail) This detail transaction fails funds check
F01 Insufficient funds (->summary) This detail transaction causes a summary account to fail funds check
F02 Insufficient funds (summary) This summary account fails funds check
F03 Insufficient funds (pending) One or more earlier pending transactions cause this transaction to fail
F04 Insufficient funds (both) This detail transaction fails and causes a summary account to fail funds check
F05 Insuff funds (<-generated) One or more associated generated transactions cause this transaction to fail
F06 Insuff funds (prop<-assoc) One or more associated transactions cause this proprietary transaction to fail
F10 Insufficient funds (budgetary) This budgetary detail transaction fails funds check
F11 Insuff funds (->sum budgetary) This budgetary detail transaction causes a summary account to fail funds check
F12 Insuff funds (sum budgetary) This budgetary summary account fails funds check
F13 Insuff funds (pend budgetary) One or more earlier pending transactions cause the budgetary transaction to fail
F14 Insuff funds (both budgetary) This budgetary transaction fails and also causes a summary account to fail
F15 Insuff funds (budg<-assoc) One or more associated transactions cause this budgetary transaction to fail
F20 Nonexistent flexfield This Accounting Flexfield does not exist
F21 Disabled or expired flexfield This Accounting Flexfield is disabled or out-of-date
F22 Posting not allowed This Accounting Flexfield does not allow detail posting
F23 Budgeting not allowed This Accounting Flexfield does not allow detail budget posting
F24 Nonexistent period This accounting period does not exist
F25 Period not open or future This accounting period is neither Open nor Future Enterable
F26 Period not in open budget year This accounting period is not within an open budget year
F27 Frozen budget This budget is frozen
F28 Expired USSGL transaction code This USSGL transaction code is out-of-date
P00 Funds not reduced This transaction does not reduce funds available
P01 Funds check not required This account does not require funds check
P02 Not funding budget This budget transaction applies to a budget other than your funding budget
P03 Foreign currency budget This foreign currency budget transaction does not require funds check
P04 Add Summary program created This summary transaction is created by the Add Summary Accounts program
P05 Force passed funds check This transaction passes funds check in force pass mode
P10 Passed funds check This transaction passes funds check
P15 Passed funds check (budgetary) This budgetary transaction passes funds check
P20 Advisory warning This transaction fails funds check; advisory checking is in force
P21 Passed due to override This transaction fails funds check; you overrode the failure
P22 Advisory warning (->summary) This detail transaction causes a summary account to fail funds check (advisory)
P23 Passed due to override (sum) This summary account fails funds check; you overrode the detail(s)
P25 Advisory warning (budgetary) This budgetary transaction fails funds check; advisory checking is in force
P26 Passed due to override (gen) This transaction or its associates fail funds check; you overrode the original
P27 Advisory warning (->sum bud) This budgetary transaction causes a summary account to fail check (advisory)
F29 The transaction account and budget account are different
F30 The transaction failed funds check at the resource level
F31 The transaction failed funds check at resource group level
F32 The transaction failed funds check at the task level
F33 The transaction failed funds check at the top task level
F34 The transaction failed funds check at the project level
F35 The transaction failed funds check at project account level
F36 Funds check failed because of unexpected error
F37 Failed because year end rollover process is in progress
F38 Funds check failed because of invalid budget versions
F39 No budget account on raw line
F40 The resource list is invalid or null
F41 The amount type or boundary code is invalid
F42 The amount type or boundary code is invalid for no time phase
F43 Invalid boundary code for amount type ‘Project to date’
F44 Invalid boundary code for amount type ‘Year to date’
F45 Invalid boundary code for amount type ‘Period to date’
F46 Funds check failed because of invalid resource list member
F47 Start date or end date is null for the specified date range
F48 Not able to derive PA date
F49 Invalid budget entry method or missing baseline version
F50 Could not map to a budget line while deriving budget account
F51 Not able to derive GL date
F52 The encumbrance type is null or invalid
F53 Funds check failed because budget baselining is in progress
F54 No matching requisition was found for this purchase order
F55 No matching purchase order was found for this invoice
F56 Could not acquire lock: funds checks are running concurrently
F57 Transaction failed because of CBC funds check
F58 Transaction failed because of GL funds check
F59 No budget exists at the resource level
F60 No budget exists at the resource group level
F61 No budget exists at the task level
F62 No budget exists at the top task level
F63 No budget exists at the project level
F64 No budget exists at the project account level
P28 Funds check passed at the project account level
P29 Funds check passed at project account level in advisory mode
P30 Funds check passed at the project level
P31 Funds check passed at the project level in advisory mode
P32 Increase in funds does not require funds check
P33 Invoice interfaced from projects does not require funds check
P34 Expense report from projects requires no funds check
P35 Funds check passed at the resource level in advisory mode
P36 Funds check passed at resource group level in advisory mode
P37 Funds check passed at the task level in advisory mode
P38 Funds check passed at the top task level in advisory mode
P39 GMS: Transaction passed Funds Check in advisory mode
F65 PO/CBC: Single year validation failure
F66 PO/CBC: Accounting Date validation failure
F67 GMS:Funds check processing error,contact system administrator
F68 GMS: Funds Check failed due to invalid award number
F69 GMS: Funds Check failed at Top Task Level
F70 GMS: Funds Check failed in full mode
F71 GMS: Funds Check failed at the Award level
F72 GMS: Funds Check failed at the Task level
F73 GMS: Funds Check failed at the Resource level
F74 GMS: Funds Check failed at the Resource Group level

2. What are the values for RESULT_CODE in GL_BC_PACKETS and what do they mean?

A = Approved ,Approved
C = Checking , Checking
F = Failed , Check Failed funds check
P = Pending , Pending
R = Rejected, Rejected
S = Passed Check , Passed funds check
T = Fatal , Irrecoverable error detected

Run the following query to obtain the full list of values for RESULT_CODE:

SELECT lookup_code, meaning
FROM gl_lookups
WHERE lookup_type = ‘FUNDS_CHECK_RESULT_CODE’
ORDER BY lookup_code;

How to Remove Buttons on an R12 Webform using Page Rationalizations (Doc ID 459261.1)

To remove specific buttons (or any other page element) use the following process:

1) Open form and navigate to page
2) Click on the Personalize Page link in the upper right of the page
3) Click Expand all (Some page elements are nested and not visible at the top level. For instance the “Create” button in the Quick Update page of the Supplier form is in the Table Actions section of the Key Purchasing Setups and Key Payment Setups sections; 2 nested levels from the top)
4) Search through the various page elements until you find the one you’d like to change.
5) Click on the Personalize icon (yellow pencil)
6) For the “Rendered” element property, set the value to “false”. The levels are like setting profile options, with inherit being sort of like NULL

R12: How to Remove Button ‘Update Suppliers’ from Supplier Inquiry Page (Doc ID 559510.1)

The following options may be adopted to suit your requirements:

Option A
   1. Log in application with “system administrator”
   2. Go to Security >> Responsibility >> Define: Query with Payables responsibility you want to use to query suppliers
   3. Under Menu Exclusion set the following
            Type as function
            Name as Supplier Full Access: Buyer View
   4. Retest

Option B
   For controlling the ‘Create Supplier’ control/button, this is achieved by Personalization.
   Perform the following action to disable the ‘Create Supplier’ control/button.
       1. Enable personalization by setting the following profile options
           Disable Self-Service Personal set it to No
           Personalize Self-Service Defn set it to yes
       2. Then Go to Payable Responsibility >> Supplier >> Inquiry
            You will see the following link ‘ Personalize Table Layout: (btnTableRN)’
            Then look for ‘Submit Button: Create Supplier’
            Click on personalize (Pencil icon)
            Set the rendered field to False at required level and apply.
        3. Retest

 

Enhancement Request  Bug:6414490 RCVRCERC UNABLE TO VIEW REQUISITION has been logged as a desirable feature.

To review details about the Enhancement Request:
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R12: Employee Type Suppliers Frequently Asked Questions (FAQ)

QUESTIONS AND ANSWERS

Q1) Users are unable to query employee suppliers. What could be wrong?

The function POS_HT_SP_EMP_SUPPLIER has not been properly setup for the responsibility that is being used to run the supplier form.  New functionality in R12 has Employee type suppliers not being enterable or queriable unless the function POS_HT_SP_EMP_SUPPLIER is assigned to the menu where the Supplier forms is called from.

• Include the function POS_HT_SP_EMP_SUPPLIER with the grant flag checked in the menu of the responsibility which the customer plans to have access to both standard and employee vendors.
  or
• Check the grant flag for the function POS_HT_SP_EMP_SUPPLIER in the menu POS_HT_SP_FULL_ACCESS_MENU. However then all users that can create standard supplier will also be able to create employee supplier.

Then bounce the Apache server.

See Note.1371295.1 for more information.

Q2) Where is the Create a Supplier from an Employee Option in R12?  We are only able to create standard suppliers.

The solution is the same as shown above in Q1 for Querying An Employee Supplier

See Note:1371295.1 for more information.

Q3) Upgraded employee suppliers are not available in the suppliers form in R12. However, the supplier can be used to create an invoice. What is the problem?

New functionality in R12 has Employee Supplier Type not being enterable or queriable unless the function POS_HT_SP_EMP_SUPPLIER is assigned to the menu where the Supplier forms is called from.

The function Create/Update employee supplier details (POS_HT_SP_EMP_SUPPLIER) has not been properly setup for the responsibility that is being used to run the supplier form.

See Note:422849.1 for more information.

Q4) Why can address information not be viewed from AP for employee type suppliers?

In R12, employee address information is stored only in Oracle Human Resources. It is no longer stored in supplier records in the case of employee type suppliers. This is because the employee type supplier is modeled differently than standard suppliers. While processing payments or employee expense reimbursements the employee address information will be picked up from HRMS.

This enhancement is done to support the Safe Harbor related requirements, which requires the application to support data privacy and data security of sensitive information.

Q5) Why are we unable to view the address information in AP for suppliers created automatically by the Expense Report Export program?

Employee type suppliers do not have Address records in TCA associated with them. They can have the OFFICE or HOME site, but there is no address as defined in TCA. Address elements (Address1, City, State, etc.) are taken directly from HR, but are not displayed in the Supplier form at all. This is intended functionality meant to address the fact that a Payables clerk does not need to have access to the home address of every employee who is set up to receive Expense payments.

The address elements for the HOME site are from the address of the the employees record as seen in the People form in HR.

The address elements for the OFFICE site are from the address of the location of the employee’s current assignment. Get the Location from the Assignment window of the People form and then use that in the Locations form.

See Note:878607.1 for more information.

Q6) Why can the Employee Name not be updated from the AP webform in R12? This information was able to be updated in R11i.

In R12, it is no longer possible to update employee data directly via the supplier record. This data has to be updated in HR and then the changes replicated into the AP data by running the Employee Update Program.

Q7) Why are users unable to update a few attributes for employee type suppliers?

Users are prevented from updating employee type supplier attributes in AP because the supplier data should be in sync with that of the employee data in HRMS.

The following list of attributes cannot be updated in AP:

Supplier Name
Alternate Supplier Name
Alias
SIC Code

Please refer the following for details:

Bug 6666051: R12upgrade: Supplier search result and detail show diff. supplier name

Q8) Why is the data for employee suppliers when queried in AP different to how the data displayed in HR?

When a change is made to a HR employee record, that data is only updated in AP when the Employee Update Program is ran.

Q9) In invoice/payment workbench, when querying employee supplier, the display name is having format of Last name-First Name-Middle Name where as in HR such employee name is different. i.e  Swain, Sunil Kumar in Payables and Sunil Swain in HR.

Employee Supplier name (vendor_name in AP_SUPPLIERS) was incorrectly updated to the format last_name,first_name Middle name after the employee update program was run. This format did not match the way the name was stored in HR (PER_ALL_PEOPLE_F).

This was reported as Bug 9615088 and was fixed with a patch.

See Note:1269458.1 for more information.

Q10) In R12, what information for an employee type supplier is updated via Employee Update Program (EAP)?

The employee update program updates employee type supplier records if the corresponding employee record has been changed. In R12, when you submit the Employee Update Program, the system identifies any employee records that have changed since the last time you submitted the program.

If any employee records have been updated, then the Employee Update Program updates the supplier name (updated from Employee Name) and the inactive date information in the supplier records.

This program no longer updates the address information for the supplier.

Q11) How does duplicate supplier name validation happen in R12?

Duplicate supplier name validation happens only in case of standard suppliers.

It is a valid business scenario in case of multiple employees having same name. Hence the duplicate supplier name validation is not done for employee type supplier and also between standard suppliers and employee type suppliers.

Q12) How can multiple employees with the same first and last name be differentiated?

A field named ‘Employee Number’ has been provided to resolve this issue.

• In Invoice and Payment workbench: Employee Number column was added in the Trading Partner and Supplier Num LOVs.

• In Invoice Overview: Employee Number column was added in the LOVs belonging to Trading Partner section.

• In Payment Overview: Employee Number column was added in the Name and Supplier Number LOVs belonging to the Payee section.

Q13) Why am I unable to create a provisional supplier site for employee suppliers?

Employee related information has to be maintained in HR. Till recently, there were only TWO ‘Mail To’ options available in HR Employee information – ‘Home’ & ‘Office’. These available ‘Mail To’ options were utilized to create the supplier site in Payables and while processing payment the address information will be retrieved from HR (for the applicable site) and printed on check.

If the requirement is to allow payments to a temporary address (Other than ‘Home’ & ‘Office’), then Patch:8320268, currently available for OA release 12.0 and 12.1, can be applied.

See Note:835313.1 for more information.

Q14) Some of our employees want to be paid in cheque to OFFICE or PROVISIONAL address.  In 11i, we can only use HOME address for employee-suppliers in Oracle Internet Expense. Can we use OFFICE and/or PROVISIONAL site addresses for employee suppliers in addition to HOME in R12?

Yes, in R12, the iExpense Application supports, Home, Office and Provisional as the address type.

See Note:1342265.1

Q15) Why are users unable to create and view contacts for employee type suppliers?

In R12, contacts cannot be created for employee type supplier. The supplier site contacts import program also has been modified to prevent import of such contacts. The view PO_VENDOR_CONTACTS.xdf has been modified to prevent contacts for employee type supplier from showing up in the view.

Please refer the following for details:

Bug 7390094: Data fix: Unable to view PO from Purchase Order Summary form

Q16) Why is the Tax and Financial Information Region Missing for Suppliers Classified as Employees in Oracle Payables?

The system is working as intended. This region is available for all suppliers except the ones classified as employees. The tax information is stored for the employees in HR. Define all the tax information for employees in HR.

See Note.466367.1 for more information.

Q17) What is the Address Printing logic on Checks for Employee Expense Reports?

In R12, employee address information is stored only in HRMS. It is no longer stored in supplier records in case of employee type suppliers. This is because the employee type supplier is modeled differently than standard suppliers.

In order process employee expense reimbursements, the following logic is applied:

• If the expense payment site is ‘Home’, then the primary address of the employee record as seen in the People form in HR will be used.

• If it is ‘Office’, then the address of the location of the employee’s current assignment will be used. You can get the Location from the Assignment window of the People form.

• If the expense payment site is ‘Provisional’, then the address with address type as ‘Mailing’ from the employee record will be used.

However if the expense payment site is different from any the above mentioned (generally in case of an application upgrade from Release 11) (i.e.) ‘Home’, ‘Office’ or ‘Provisional’ then the logic applied for ‘Home’ will be applied.

Q18) When attempting to uncheck the ‘Federal’ checkbox in Supplier Entry for terminated employees the following error: FEDERAL_REPORTABLE_FLAG and 1099_TYPE do not match 1099 Type is inconsistent EMPLOYEE_ID is invalid Employee Info is invalid.  What is the problem?

Applying the patch released for Bug 7676989 for Oracle iSupplier Portal allows updating Supplier Tax Details (Federal; Reportable Flag and Income Tax Type).

Q19) Why can the termination date not be removed from an employee in AP in order to allow their final expense report to be entered and paid?

The new requirement that an Employee type supplier can not be updated if the associated employee record is not current. The core problem is that when the Employee Supplier record is inactivated by the Employee Update Program, the Actual Termination Date is used as the Inactive Date. This doesn’t allow for a grace period when an terminated employee can still get expenses paid.

Various bugs were logged for this and Patch 10014253 was released to correct the problem so that when the Employee Update Program is run, the Inactive Date on the supplier record is stamped with the Final Process Date from the employee’s termination record.  If the Final Process Date is NULL then the Actual Termination Date is used. If the Final Process Date is changed and Employee Update Program is run again, then the supplier Inactive date will be set to the new Final Process Date.

R12 Oracle Payments Processing ‘How To’ documents

PAYMENT PROCESS REQUESTS (Payment Batches)

1. How to Modify a Payment Process Request in R12

From the Oracle Payables User’s Guide, Release 12 (Part No. B25454-01, December 2006)…page 5-32:

“If you optionally configured the payment process request run to pause after invoice selection, you can review invoice selection, review the unselected invoices, add or remove documents payable if necessary, change invoice amounts, and review cash requirements. Once you finish reviewing the payment process request, you can click the Submit button to initiate the payment creation process. This action also generates the Scheduled Payment Selection Report.”

See Note 462791.1 for more information on:

– Reviewing Selected Invoices

– Removing Selected Invoices from the Payment Process Request

– Adding Selected Invoices to the Payment Process Request

2. How to “re-add” an Invoice to a PPR

See Note 557834.1 for steps and more information.

3. How to Complete a Payment Process Request that Shows Status = Formatting

If one hits “Reprint”, the batch gets stuck at Status “Formatting”. Users don’t want to Record Print Status as “Printed” since nothing has printed.

See Note 553413.1 for steps.

 

XML PAYMENT TEMPLATES

1. What File Is Needed To Customize A “Standard Check Format” Xml Template

Package IBY_FD_EXTRACT_EXT_PUB controls the XML extract used in check printing. The supplied version can be found in $IBY_TOP/patch/115/sql/ibyfdxeb.pls.

This package contains functions that are called in SQLX Views and will be picked while generating the XML.

The package also contains examples to show how each function in it is to be used, and how we need to write the code in same.

Modifications to this package is considered a customization and is not supported by Oracle Support.

See unpublished Note 787467.1 for more information.

2. How to Create or Modify a Payment Format Using XML Builder

How does one create an XML file from Oracle Payments Funds Disbursement Payment Instruction Extract, Version 1.0 that can be loaded into the Template Builder to enable creation or modification of Payment Formats?

See Note 465389.1 for details.

3. How to Customize a “Standard Check Format” Xml Template

Package IBY_FD_EXTRACT_EXT_PUB controls the XML extract used in check printing. The supplied version can be found in $IBY_TOP/patch/115/sql/ibyfdxeb.pls.

This package contains functions that are called in SQLX Views and will be picked while generating the XML. The package also contains examples to show how each function in it is to be used, and how we need to write the code in same.

Modifications to this package is considered a customization and is not supported by Oracle Support.

See Note 457539.1 for details.

4. How to Create / Modify Payment Formats

Financial institutions, payment systems, and/or countries have specific formatting requirements for funds capture transactions, funds disbursement transactions, payment documents, and payment-related reporting. Formats are created within Oracle Payments to represent these requirements. Each format in Oracle Payments corresponds to one Oracle XML Publisher template.

See Note 562806.1 for more information.

5. BACS Payment Format: Where to populate Service User Number (SUN)?

Q1: Where to enter the Service User Number (the number received from BACS authority) for a bank account?

A1: The field used by default for this purpose EFT Number (because BACS is an Electronic File Transfer).

To populate it, navigate : Setup -> Banks -> Bank Accounts then query for internal bank account you use to make payments.

Then go to Account Information -> Field : EFT Number

Enter in this field the SUN.

Q2: How to include this number on the payment format output in case that it is not included by default?

A2: If after populating the EFT Number this will not be included in the output of payment format then you will have to create your own payment format starting from “UK BACS 1/2 Inch Tape Format”. It is not recommended that you modify the seeded format. Unpublished Note 465389.1: “R12 Create Or Modify A Payment Format Using XML Builder” describes how to accomplish this task.

Also see Note 467999.1 for more information.

6. How to Customize the XML Extract for Check Printing with Additional Data

The package IBY_FD_EXTRACT_EXT_PUB needs to be customized to accomplish this.

Package IBY_FD_EXTRACT_EXT_PUB controls the XML extract used in check printing. The supplied version can be found in $IBY_TOP/patch/115/sql/ibyfdxeb.pls.

This package contains functions that are called in SQLX Views and will be picked while generating the XML.

The package also contains examples to show how each function in it is to be used, and how we need to write the code in same.

Modifications to this package is considered a customization and is not supported by Oracle Support.

See Note 457539.1 for more information.

7. What File Is Needed To Customize A “Standard Check Format” Xml Template?

Package IBY_FD_EXTRACT_EXT_PUB controls the XML extract used in check printing. The supplied version can be found in $IBY_TOP/patch/115/sql/ibyfdxeb.pls.

This package contains functions that are called in SQLX Views and will be picked while generating the XML.

The package also contains examples to show how each function in it is to be used, and how we need to write the code in same.

Modifications to this package is considered a customization and is not supported by Oracle Support.

See Note 457539.1 for more information.

 

GENERAL PAYMENT ISSUES

1. How to create a Payment Process Profile (PPP)

Payment Process Profiles (PPPs) are created and managed using the Payments Setup Administrator responsibility:

Navigate to: Oracle Payments Setup > Codes region > Payment Process Profiles row > click on the Go To Task icon > use the Create button to create a new PPP, or search for an existing PPP for updates.

See Note 437330.1 for more information.
2. How to Remove Seeded Validations for Oracle Payments

The Solution is to inactivate these validations in Oracle Payments or to define specific combinations when they should not be triggered.

See Note 578369.1 for 2 examples.

 

3. How to Control the Delivery Channel Code of the Invoices if Selected for Payment is Populated

There are two ways to handle this issue. You can add the validation at the Payment method or at Format. The validations regarding the Delivery channel are available under the User defined validations.

The field names are Document delivery channel and Payment delivery channel.

The validation can be attached with the name Required.

If you are making the payments through a specific payment method, the validation can be attached to the Payment method. Otherwise, it is suggested to attach this to the format.

After adding this validation, when the PPR picks up invoices without the Delivery channel, during formatting, the invoices without the Delivery channel data will be rejected with the information Document Delivery channel is required.

See unpublished Note 578534.1 for more information.

 

R12 How to Control the Sort Order of Payments in AP Payment Batch Format Output Files

Payment sorting can be specified in the Payment Process Profile setup, as follows:
1. Identify the Payment Process Profile to which payment sorting needs to be added or changed.
2. Display the Update Payment Process Profile screen for that particular Payment Process Profile.
3. Click on the Payment Instruction Creation tab.
4. See the sub-region of the screen that is labeled Payment Sorting.
5. Define the First Sort.
A. Select a value from the Payment Attributes drop-down list:
Payee Bank Branch Number
Payee Name
Payee Number
Payee Taxpayer Identifier
First Party Organization
Payment Amount
Payment Date
Payment Function
Postal Code
B. Select either Ascending or Descending from the Sort Order drop-down list.
6. Repeat step #5 for up to two additional sort orders, if desired.
7. Click the Apply button, to save the change.

Note that the payment sorting setup that is described above is designed to sort the payments at the point of payment numbering.  That payment sorting result will be reflected in the xml data extract that gets generated by the Format Payment Instructions process.  However, if the XML Publisher Format Template file that you are using contains a sort on anything other than the payment number, it is possible that the sort order from the setup described above will not be maintained during the formatting of the output file.

And, if you require the payments in the output file to be sorted based on anything other the 9 Payment Attributes that are listed above (e.g. the payee bank account name), then you would need to explore the possibility of adding a custom sort to the XML Publisher Format Template file that you are using.  If any technical advice is needed when configuring your template to perform the custom sort, please open a Service Request with the BI Publisher Support group.

iExpense – How to authorize an employee to enter expense reports for another employee

You can authorize an employee to enter expense reports for another employee. An employee who is assigned the responsibility to enter expense reports for another employee is an authorized delegate. There are 2 ways this could be done:

1. Go to System Administrator>Security> Users
Query for the User’s record. Under Securing Attributes tab, add the below details:
Attribute: ICX_HR_PERSON_ID
Application: Self-Service Web Applications
Value: Employee Id or the Person_id to whom the access to enter the expense reports has to be given.

2. Go to the iExpense responsibility > Expense Preferences >Authorization Preferences
Under Expenses Entry Delegations, click on the Add another row and enter the name to whom the access to enter the expense reports on your behalf has to be given.

How to Adjust Average Cost with Invoice Price Variances (IPV)

 

If you want to get your inventory cost, and ultimately your cost of goods, to reflect the actual cost you paid for your items, then you will want to interface the Invoice Price Variance (IPV) from Oracle Payables to Oracle Inventory/Cost Management.  The ability to perform this update of inventory cost is only for inventory organizations using the average cost costing method.  To understand this process, let’s look at the flow of cost from PO receipt to Transfer of Invoice Variances.  Here’s an overview of each step:

1.       Create and approve a PO

2.       Receive the item

3.       Enter and match an AP invoice (release any holds if necessary)

4.       Generate accounting for the AP invoice

5.       Transfer invoice variances to Inventory

Step 2 in the process (PO receipt) sets the initial average cost.  This cost will be used on all issues or shipments out of inventory.  Remember in average costing, we receive at PO price and issue out at average.

Once steps 3 (enter and match an AP invoice) and 4 (generate accounting) are complete, we are ready to run the Transfer Invoice Variance to Inventory program.  You can run the program from Cost Management for one inventory organization at a time.  This program will sum the difference between the invoice price and the PO price for each item/organization combination and then create an average cost update transaction.  This transaction will have an amount but not a quantity.  This amount is then applied to the remaining inventory on-hand.  So let’s look at a couple of examples and how your average cost will change.

Example 1:

• PO Price $10
• Receipt Quantity 100
• Invoice Price $12
• On-Hand 100
• Beginning Average Cost $10
• Ending Average Cost $12

In this example, we will apply the IPV of $2 to all 100 units in inventory.  So the average cost before the IPV transfer is $10 and the average cost after the IPV transfer is $12.  This would correctly value our inventory at actual cost.

Example 2:

• PO Price $10
• Receipt Quantity 100
• Invoice Price $12
• On-Hand 10 (sold 90 units)
• Beginning Average Cost $10
• Ending Average Cost $30  (($200/10) + $10 = $30

In this example, we will apply the IPV of $2 to remaining 20 units in inventory.  So the average cost before the IPV transfer is $10 and the average cost after the IPV transfer is $30.  This would result in lower margins the next time we sell and ship this item.

Example 3:

• PO Price $10
• Receipt Quantity 100
• Invoice Price $12
• On-Hand 0 (sold 100 units)
• Beginning Average Cost $10
• Ending Average Cost $10

In this example, we wouldn’t apply the IPV of $2 because the on-hand quantity is zero.  So the average cost before the IPV transfer is $10 and the average cost after the IPV transfer would also be $10.

Refunds and Netting in R12

Refunds and Netting in R12