The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will

Contra Charging Feature in AP & AR

Overview

When you do business with a company that is both your supplier and your customer, you can apply your accounts payable to your accounts receivable for that company to determine the net balance that is owed. The Suppliers balances and the Customers balances cannot be set-off in the normal applications. Contra Charging feature allows for credit memos to be created in AP and AR, based on the amount you mention after having a look at the balances of the organization on the Supplier Side and the Customer Side.

Setup

1. Setup the required parameters for Contra Charges as described in 'Oracle Financials Common Country Features User Guide - Page: 3-53 to 3-90'.
2. Define Document Category called 'Contra' for both Payables (AP_INVOICES_ALL) and Receivables(RA_CUSTOMER_TRX_ALL) Applications.
   
3. Define document sequences, assign the document sequence to Contra document category, For Both AP and AR.
4. Setup Receivables Contra Source.
5. Setup Contra Transaction Type with Credit Memo Class.
   
6. Setup user profile for AP Responsibility, incl. the following: Tax: Allow Override of Tax Code (Yes)
   Tax: Allow Override of Customer Exemption (Yes)
   Sequential Numbering (Partially Used)
   JG: Contra - Include Future Dated Payment in Supplier Balance (Yes)
   
7. Define Payables Lookup ( Source ) for 'Contra'.
8. Assign a 'Contra Charging' Menu to 'AP_NAVIGATE_GUI12' main menu,which tied to AP Responsibility.
9. Having created the new form 'Contra Charging', enter Contra Charging Transactions, then Submit Contra transaction.

Pay On Receipt ( ERS )

Pay on Receipt, also known as ERS (Evaluated Receipt Settlement), or Self-Billing, is an Oracle Purchasing concurrent program, which automatically creates invoices in Payables and matches them with Purchase Orders for the received amount.

How Does It work?

When Pay on Receipt Auto invoice (PRA) is ran, it in turn launches Payables Open Interface Import program (PII).
PRA updates invoice_status_code of rcv_transactions (Receipt - Receiving) to INVOICED, then populates records in ap_invoices_interface and ap_invoice_lines_interface. Then the interface data is committed and PII is invoked to create the invoices.

If PII program errors out for some reason during the validation of AP interface data then the records stay in interface tables with REJECTED status and the associated error information will be stored in AP_INTERAFACE_REJECTIONS table.

PRA sets invoice_status_code of rcv_transactions, for transaction_type RECEIVE, to INVOICED for both successfully imported invoices and for invoices rejected by PII.

If Pay on Receipt AutoInvoice is ran again later then it will pick only those records which have invoice_status_code as 'PENDING. It will not pick/process the records which have invoice_status_code = INVOICED.

Before this, at the time receiving transactions ( Receipt ), system checks for the value of the vendor site's Pay On Code. If Pay On Code is set to ‘Receipt’ (Pay On = Receipt), then invoice_status_code is inserted into rcv_transactions as ‘PENDING’, otherwise it will be inserted as null. PRA Program will process the receiving transactions with invoice_status_code as 'Pending' only and updates the status to 'Invoiced'.

I. Basic Setup Required

1) Navigation: Purchasing Super User Responsibility > Supply Base > Suppliers. Query the Supplier to be associated with the Purchase Order. Select Site button. In the General Tab, select the Pay and Purchasing check boxes:

2) In the Purchasing Tab of the Supplier Sites form in the Self Billing section, the Pay On and Invoice Summary Level fields are set as follows (this set up is done in Payables):

Pay On = Receipt

If Pay On is set to ‘Receipt’, Invoice Summary Level settings may be one of the following:

• Pay Site = one invoice is created per supplier pay site.
• Packing Slip = one invoice is created per packing slip per supplier pay site.
• Receipt = one invoice is created per receipt per supplier pay site.

The above settings will determine how the invoice number is created:

The Invoice Number is of the following format:

‘ERS’--

where:

- ERS is the default prefix for Pay On Receipt invoices, or any prefix specified in

the profile option PO:ERS Invoice Number Prefix.

In the above setting, ‘Seq#’ is a unique system generated number, where X
Depends on the summary level indicated above in the Invoice Summary Level Setting:.

3) Navigation: Purchasing Super User > Purchase Order > Purchase Order > Terms window.

The Pay On field should be set to ‘Receipt’:

4) Navigation: Payables > Setup > Options > Payables > Invoice Tab:

Under GL Date Basis, there are four options. The accounting date will be based on the option selected here:

• Invoice Date (Invoice date entered on the Invoice in Accounts Payable)
• System Date (Current/system date the invoice was entered in Accounts Payable)
• Goods Received / Invoice Date (Invoice date entered on the receipt in Accounts Receivable)
• Goods Received / System Date (Current/system date the receipt was entered in Accounts Receivable)