Setups in Payables are broken down into three different types: required, conditionally required (referring to setups that

come seeded but can be modified or changed), and optional. Required - Certain setups are necessary for processing all transactions in Payables 1. Operating Unit - Prior to beginning the setups in Payables, an Operating Unit must be defined. The main purpose of an Operating Unit Organization is to associate a purchasing organization to the Ledger; this is a many-to-one relationship, where each Ledger can have multiple organizations associated to it, but each organization can be related to only one Ledger. >>> Details about the above form >>> Below - The Operating Unit Information is required to associate this unit with a Ledger. Primary Ledger - this is the Ledger that all purchasing transactions will create accounting transactions in, according to the Subledger Accounting (SLA) rules 2. Financial Options FO determines .. Accounting On the Accounting tab, default account numbers are assigned for transactions to the blacked field. These accounts will become the defaults for suppliers when they are set up, and they can be changed there to create supplier-specific accounting. PG-121

Supplier Purchasing Tab The information completed on the Supplier-Purchasing tab will create defaults for several key supplier setups. RFQ, Ship-to-location, bill-to-location INVENTORY ORGANIZATION is a required field even if you are not using inventories; it will determine which items can be purchased from this organizationonly items that are set up in this inventory organization can be purchased. Encumbrance Tab Under the Encumbrance tab, Payables can be set up to use both Requisition and PO Encumbrances, as well as determine whether funds can be reserved by the requisition preparer (RESERVE AT COMPLETION is checked) or if only approvers can reserve funds.

HR Tab

The Human Resource tab is used to default data when setting up employees in EBS. Employees can be added to EBS to create a hierarchy for Purchasing document approvals, invoice approvals, and journal entry approvals.

A BUSINESS GROUP is assigned here, so that the employees will all be registered in that group. When Organizations are created, at least one organization needs to be classified as a Business Group.
Employee Numbers can be assigned either automatically or manually, as determined with the METHOD, and the NEXT AUTOMATIC NUMBER will be populated when automatic numbering is selected. This next number can be reset at any time, but ensure that it is reset to a number greater than the last number assigned to prevent problems when adding employees. 3. Payables System Setup: Payables System setups control some key setup defaults and controls for Suppliers, Invoices, and Payments,

Supplier Numbers The numbering of suppliers is controlled here, determining if a new supplier number is assigned automatically or manually in the ENTRY field. Invoice Control The INVOICE MATCH OPTION determines whether invoices are matched to the receipt itself or to the purchase order, which indirectly links it to the receipt. When this field is set to RECEIPT, the invoice cannot be matched until the receipt is actually transacted in EBS, delaying the invoice entry and causing the transaction to be manually monitored until the receipt is made and allows matching to it. Selecting HOLD UNMATCHED INVOICES will cause any invoice entered into Payables to be held if it was not matched to a purchase order; this option is useful if all invoices are matched to purchase orders. Currency This option can also be set at the supplier level, but it defaults on each new supplier from here.. PAYGROUPS, used to group invoices into a single payment request, can be added as a default for all invoices. When entering an invoice into Payables, you can use any of several dates to default the payment terms, as set in the TERMS DATE BASIS SYSTEM, GOODS RECEIVED, GOODS RECEIVED, INVOICE RECEIVED. PAY DATE BASIS determines if invoices are selected for payment based on the Due date or the Discount date, as defined with the payment terms. PAYMENT TERMS will default the terms on all suppliers entered into EBS, which in turn defaults onto the invoices entered against that supplier. Payment Terms

Payment Terms are required when entering an invoice; they determine the due date for the invoice. The CUT-OFF DAY is used for terms where the payment is due on the specific day of a month; it determines if the invoice should be due this month or the next. Special Calendars Special calendars (Payables Manager | Setup | Calendar | Special Calendar) are used for specific reasons in Payables, including Recurring Invoices, Withholding Tax, Payment Terms, and Key Indicators. Recurring Invoices use the calendar to determine the frequency that an invoice can be generated for. Withholding Tax uses the calendars to limit the amount of tax that can be withheld in any given time period. Payment Terms uses the calendar to determine the due dates for invoices with terms dates in a set time period, and Key Indicators refers to the time periods that the Key Indicators report will gather data for. Bank Setups Banking information is entered for two reasons in Payables: to identify the bank account the funds are being disbursed from (internally owned) or to identify the bank account funds are being sent to (externally owned). Once the Bank is saved, you can add a Branch. The COUNTRY and BANK NAME will default from the Bank when you click the CREATE BRANCH button next to the bank name in the Bank window. The BANK CODE identifies the branch as using a CHIPS Code, a CHIPS Participation ID, or a Federal Routing Number that was listed in the Routing Transit Number field. The BRANCH TYPE, used to identify the clearing house used for the payments, can be set to ABA for Federal Reserve System Routing, CHIPS for Clearing House Interbank Payments System, or SWIFT (Society for Worldwide Interbank Financial Telecommunication) for routing payments across country borders. If this branch is going to be used for EDI transactions, then the EDI LOCATION can be added. The company number provided by the banking institution can be added in the EFT NUMBER field for more accurate matching of Electronic Funds Transfer. The Regional Financial Centers (RFCs) are processing centers for banking institutions and are identified as AFC for Austin, BFC for Birmingham, CFC for

Chicago, KFC for Kansas City, PFC for Philadelphia, and SFC for San Francisco. Once the branch is saved, contacts and addresses can be added to it. Bank Accounts can only be created after the Bank and Bank Branch have been set up.

Payables Processing Entering Invoice