Oracle Applications : Payables : Future Dated Payments

Oracle Applications : Payables : Future Dated Payments 

What is a bill payable?

A bill payable is a document which shows the amount owed for goods or services received on credit. Examples of a bill payable include a monthly telephone bill, electricity bill, a bill for repairs or maintenance, the bill for merchandise purchased by a retailer on credit, etc. The provider of the goods or services is referred to as the supplier or vendor. Hence, the bill payable is also known as an unpaid vendor invoice.

Future dated Payment is also called Bill Payable

Create a Payment Method:

To create a payment method that issues bills payable only, perform the following steps.

1. In the Navigator, under

 Setup: Payment, click the Payment Administrator link to navigate to the Oracle Payments Setup page.
2. Under Funds Disbursement Setup, click the Go To Task icon for Payment Methods. The Payment Methods page appears.
3. Click the Create button. The Create Payment Method: General page appears.
4. In the Bills Payable region, select the Use Payment Method to Issue Bills Payable check box. When you enable this check box, the payment method is used only for creating bills payable
5. In the Maturity Date Override field, specify the number of days to add to the payment date to determine the maturity date.

Create a Payment Process Profile:


To ensure that a payment instruction contains only bills payable, perform the following steps.

1. In the Navigator, under Setup: Payment, click the Payment Administrator link to navigate to the Oracle Payments Setup page.
2. Under Funds Disbursement Setup, click the Go To Task icon for Payment Process Profile. The Payment Process Profiles page appears.
3. Click the Create button. The Create Payment Process Profile page appears.
4. In the Payment Grouping region, select the Bills Payable check box so only bills payable will be grouped into a single payment instruction.

SETUP

 If user have not set up the system to default a bills payable account, accounting entries will not be created for any bills payable. These transactions will be listed on the Payables Accounting Entries Report in the Exceptions section with an Invalid Account notation. To enable the accounting entries to be created, the following setups must be performed:

1. In the Payables Options window, Accounting Option tab, Payment Accounting region, specify from where user want the bills payable account to default: From Payment Document or From Supplier Site.

2. In the Financials Options page, Accounting tab, Future Dated Payment field, specify the default account for bills payable. The values default to new suppliers and sites in the following order: Financials Options > Suppliers > Supplier Sites. The values default to bank accounts and payment documents in the following order: Financials Options > Bank Accounts.

3. When the setups are complete, rerun the Create Accounting process This is found in the Payables User guide under the Bills Payable section.

Future dated payment clearing account is set up in one place only - Financial Options - Accounting tab.