ERPstuff - Oracle EBS Community

1. invoice match option and invoice match level .............are these
two options are independent to each other .....it means suppose my
"invoice match option" is po receipt ....where as my "invoice match
level " is 2-way..........then how AP works in this case?

2. we know that supplier, customer information is global information
...........global means what? is it global withing BG or SoB? here
what i means is is this supplier, customer information is accessible
across SoB, or BG?

3.at what level do we set financials options and payable options in AP
in MO set up? means at BG level or LE level or OU level or Inv Org
level.....pls tell me both of them that is financials options as well
as payable options

4.how multi org structure and CoA structure is mapped?

5. in AR application rule sets and auto cash rule sets both are deals
with processing steps which AR will use to apply receipts against open
debit items and reduces the outstanding customer balance? then in what
way they are diffrent ? my understanding is that application rule sets
are used for manual receipts and where as auto cash rule sets are used
for auto receipts imported by auto lockbox...........is this
understanding correct or is there any seperate reason

6. how can u net AP and AR?

7. suppose i paid prepayment 100/- and i made purchases worth 70/- and
supplier has netted that prepayment against that invoice and refunded
that 30/- to me..............now how to account that 30/- refund
amount in my payables

HI ALL


SUPPLIER IS ACCESSABLE ACROSS THE BUSINESS GROUP.


COMING TO FINANCIAL OPTIONS AND PAYABLES OPTIONS THEY ARE SETUP AT THE OPERATING UNIT LEVEL FOR PAYABLES.

MANI

2. we know that supplier, customer information is global information
...........global means what? is it global withing BG or SoB? here
what i means is is this supplier, customer information is accessible
across SoB, or BG?

Ans: When we say Global, The Customer and Supplier Header Information is shared across Instance irrespective of the BG and SOB Etc., The current company where I am working there are
34 SOB's in one single Database. The Customer and supplier Header Information is available across all SOB's. We need to create only sites for each SOB. When you say Global Customer, Suppose you have operations in US, Singapore and UK for a same Customer and each belongs to separate SOB, then You need to know the Customer Outstanding across all three Countries across three SOB's


5. in AR application rule sets and auto cash rule sets both are deals
with processing steps which AR will use to apply receipts against open
debit items and reduces the outstanding customer balance? then in what
way they are diffrent ? my understanding is that application rule sets
are used for manual receipts and where as auto cash rule sets are used
for auto receipts imported by auto lockbox...........is this
understanding correct or is there any seperate reason

Ans: Your Understanding is correct. But Autocash rule set has got additional roles to play in terms of in case if the receipt does not find an invoice does the amount need to be kept in On account or at unapplied. Also the basis of applying it to an Invoice like Oldest Invoice first or the Payment Terms basis etc., There are seven such options which in manual Receipt application you are doing it keeping the basis of application from your mind.

6. how can u net AP and AR?

Ans: There is an AP and AR Netting Report available in Accounts payable.
You need to create a Customer for every Supplier and link it at Supplier the corresponding Customer Number in Classification Tab of Supplier Header.

7. suppose i paid prepayment 100/- and i made purchases worth 70/- and
supplier has netted that prepayment against that invoice and refunded
that 30/- to me..............now how to account that 30/- refund
amount in my payables

Ans:You create a Dummy supplier Invoice and adjust it against Prepayment for 30
and create a Miscellaneous Receipt in AR for 30
Alternatively create a Receipt for 30 in AR and run the AR and AP Netting Report.

Hi,

Accounting of refund from supplier:

suppose i paid prepayment 100/- and i made purchases worth 70/- and
supplier has netted that prepayment against that invoice and refunded
that 30/- to me..............now how to account that 30/- refund
amount in my payables

Solution:

1) Prepare a standard invoice with clearing account in distribution and apply this with the prepayment. The journal entry is

Clearing account Dr 30
To Supplier Cr 30

2) Prepare a Credit memo with clearing account in distribution and go for refund in payments window. The journal entry is

Supplier account Dr 30
To Clearing account Cr 30

Journal entry on refund

Cash/Bank Dr 30
To Supplier Cr 30


Effect of these entries.

1. The balance in prepayment account is knocked off
2. There is no balance in the clearing account.
3. No balance remaining in the supplier account


Regards,
Dhas

Hi,

Netting off AP and AR
Scenerio: Suppose your supplier is also your customer and you have due in both AP and AR balances. The following is the treatment

1. Prepare a credit memo in AR with clearing account as revenue.
The journal entry is


AP-AR Clearing account Dr 1000
To Customer account Cr 1000

2. Prepare a Debit memo in AP with the same clearing account in distribution. The journal entry is


Supplier Account Dr 1000

To AP-AR Clearing Account Cr 1000

The net effect is


Supplier Account Dr 1000
To Customer Cr 1000


Caution: Care should be taken whenever the clearing account is used. The balance in the clearing account should always be zero. The same clearing account should be used for both the entries.


Regards,
Dhas