Invoice Types
Payables provide the following invoice types:
• Standard
• Mixed
• PO Price Adjustment
• Credit Memo
• Debit Memo
• Prepayment
• Expense Report
You can use these invoice types to enter any type of invoice document you receive from a supplier. For example, you can enter basic invoices that are not matched to purchase orders or more complex invoices that matched to purchase orders at the header, lines, shipping or receipt levels. You can enter invoices in foreign currency or enter invoices for suppliers who are subject to income tax reporting requirements (1099). The characteristics of each invoice type are described below.
Standard Invoices
Standard Invoice is invoices from a supplier representing an amount due for goods or services purchased. Standard invoices can be either matched to a purchase order or not matched. Standard invoices must be positive amounts.
Mixed Invoices
Mixed Invoices can be matched to both purchase orders and invoices. Mixed invoices can have either positive or negative amounts.
PO Price Adjustment Invoices
PO Price Adjustment Invoices are for recording the difference in price between the original invoice and the new purchase order price. PO price adjustment invoices can be matched to both purchase orders and invoices.
Credit Memo
Credit Memos are memos from a supplier representing a credit amount toward goods or services. Credit memos are always negative amounts.
Debit Memo
Debit Memos are invoices you enter to record a credit for a supplier who does not send you a credit memo.
Prepayment
Prepayments are invoices you enter to record an advance payment for expenses to a supplier or employee.
Expense Reports
Expense Reports are invoices representing an amount due to an employee for business-related expenses.
Entering Invoices Overview
You can enter and import invoices into Payables in many ways:
Manual Invoice Entry
You usually enter supplier invoices in either the Invoice Workbench or the Quick Invoices window. You can match to purchase orders when entering these invoices. For information on the differences between these windows, see the following section,
Differences between Entering Invoices in the Quick Invoices Window and the Invoice Workbench.
• Invoice Workbench: (Invoice Batches window, Invoices window, Distributions window, and the associated windows). Used to enter any invoice directly into the Payables system. Use this instead of the Quick Invoices when entering complex invoices or invoices that require online validation and defaulting. Also used when entering an invoice that needs immediate action, such as payment.
• Quick Invoices window: Used for quick, high-volume invoice entry for invoices that does not require extensive validation and defaults. After entry, you import these into the Payables system. Validation and defaulting occur during import.
Automatic Invoice Creation
You can set up your system to automatically create periodic invoices, for example, rent invoices:
• Recurring Invoices.
• RTS Invoices. If you use Return to Supplier feature in Oracle Purchasing, the system creates these debit memos directly in Payables.
• Retroactive Price Adjustment Invoices. If Oracle Purchasing users use the Retroactive Pricing of Purchase Orders feature, the system automatically creates Adjustment and PO Price Adjustment invoices.
Imported Invoices
You can import invoices or invoice information to create invoices in Payables.
• Oracle Internet Expenses expense reports: Expense reports your employees enter using a Web browser.
• Payables expense reports: Expense reports entered in the Payables Expense reports window by the Payables department.
• Credit Card invoices: Invoices for employee credit card expenses. The credit card company sends you these invoices as a flat file.
• EDI invoices. Electronic invoices transferred from Oracle e-Commerce Gateway.
• XML invoices. Electronic invoices transferred from the Oracle XML Gateway.
• Invoices from external systems. Invoices, such as invoices from legacy systems, loaded using SQL*Loader.
• Oracle Property Manager invoices: Lease invoices transferred from Oracle
Property Manager.
• Oracle Assets lease payments: Lease payments transferred from Oracle Assets.
Entering Invoices with Matched Purchase Orders and Receipts in the Invoice Workbench
You can match Payables invoices to purchase orders to ensure that you pay only for the goods that you have ordered, or you can match to purchase order receipts to ensure that you pay only for goods that you have received. Purchase order matched invoices are invoices that you match to any of the following:
• Purchase order shipments
• Purchase order receipts
• Purchase order receipt lines
• Purchase order distributions
You can set up controls in your system to require you to purchase order match each invoice. You can also set an option on a purchase order shipment that controls whether invoices should match to that shipment directly or to a receipt. You set tolerances to specify the range of variance you will allow if the amounts or quantities on the invoice are greater than the amounts or quantities on the purchase order or receipt.
When you enter an invoice and match it, Payables automatically creates distributions for you and checks that the match is within the tolerance you define.
After you save the match, Payables updates the quantity or amount billed for each matched shipment and its corresponding distribution(s) based on the amount you enter in the Quantity Invoiced field. Payables also update the amount billed on the purchase order distribution(s).
Receipt and purchase order matching setup and functionality is described in detail in Purchasing Integration.
The following section describes how to enter and match invoices.
You can match an invoice to a purchase order in different ways:
• Receipt match. Matching to receipts allows you to pay only for goods or services you receive, and to pay for partial shipments without getting invoice holds. In addition, any exchange rate variance is likely to be smaller because the time between the receipt and invoice is less than the time between the purchase order and invoice.
If you use one of the Periodic Costing options available in Oracle Cost Management to record costs of goods that you order, it is critical that you always match to receipts to ensure accurate cost accounting. When you match an invoice for goods to a receipt, you can also link other charges, such as freight, tax, and miscellaneous to that receipt, so that costing can include those charges in the cost of the goods. If you match to a purchase order instead of a receipt, you will not have accurate costing data.
• Purchase order shipment match. Based on the Quantity Invoiced, Payables prorates the Match Amount across all non-fully billed purchase order distributions associated with the purchase order shipments you match to. Payables automatically create invoice distributions based on the purchase order distributions.
You can match to individual purchase order shipments. Payables automatically create invoice distributions based on the purchase order distributions.
• Purchase order distribution match. You can allocate the match amount to specific purchase order distributions. Payables automatically create invoice distributions based on the purchase order distributions you match to. See: Matching to Purchase
Order Shipments and Distributions from the Invoice Workbench.
• Price correction. Use a price correction to adjust the invoiced unit price of previously matched purchase order shipments, distributions, or receipts without adjusting the quantity billed.
When you are matching to a purchase order, open the View PO window to have easy access to purchase order information.
Prerequisites
• Enter a purchase order.
• Enter purchase order shipment information.
• Select a Match Approval Level and an Invoice Match Option for the purchase order.
• Enter the supplier and at least one pay site.
