Mass Addition - AP Integration to FA

Payables Integration with FA:

Payables houses all the transaction related to the money that needs to be paid. From the perspective of a functional, the invoice is used to register the transaction between purchaser & supplier.The invoice is the common entity between payables and other modules.
The assets created from PA are created from capitalized project lines. You can track all expenses during construction and capitalize completed projects. You process construction-in-process (CIP) assets by adding,building and capitalizing them. CIP assets are not ready for use because
they are still being built and are non-depreciable. CIP assets can only be
added to Corporate books.

Integration with FA is done through Mass Addition

Create Mass Addition Program transfers the invoice distributions to Assets (FA) , when the option Track as Asset is enabled at invoice line level. Below screenshot shows the option to be checked if the invoice line needs to be tracked as asset.

Flow in Mass Addition:

Asset validation API is used for validating the invoice distribution lines before being loaded into
FA_MASS_ADDITIONS_GT table.


1. FA_MASS_ADDITIONS_GT populates all the records which are moved from AP to FA, data from AP_INVOICE_DISTRIBUTIONS_ALL & AP_SELF_ASSESSED_TAX_DISTRIBUTIONS are loaded when the below conditions are met:

  assets_addition_flag='U'
  assets_tracking_flag='Y'
 
once loaded into FA_MASS_ADDITIONS_GT are loaded the line_status is set to 'NEW'

2. Validation is done for the data loaded & the line_status is updated to 'PROCESSED' or 'REJECTED' processed lines are further inserted into FA_MASS_ADDITIONS for processing.


Possible reasons 

line_status REJECTED:
- a child line in NEW status whose only matching parents are in the DELETE queue in FA_MASS_ADDITIONS;
if book_type_code is null
- a parent line with natural account derived from PAYABLES_CODE_COMBINATION_ID not matching asset clearing account for
a category of a book being processed or none of asset clearing accounts of any book if book is null
- a child line with rejected parent


line_status PROCESSED:
LINE_STATUS is set to VALID and at the end of FA code to PROCESSED
- a parent ITEM / ACCRUAL line with natural account derived from PAYABLES_CODE_COMBINATION_ID matching asset
clearing account for a category of a book being processed; if the book_type_code is NULL then the code will look
for a book with matching clearing account in category setup .
- a child line of a VALID parent in FA_MASS_ADDITIONS_GT
- a child line of a parent in FA_MASS_ADDITIONS
- a child line of a parent already posted to FA in previous run


Execution Parameters :

2 mandatory parameters needed for Mass Addition Create Program is

1. Asset book type code
2. Account Date
AP will transfer to FA all the distribution lines with an accounting date lower than the Accounting Date parameter,
which also belongs to the specified FA book parameter.

Prepare Mass Additions  :

Once the data resides in FA_MASS_ADDITIONS, you must go into the Prepare Mass Additions form in Oracle Assets to enter additional information to each line in preparation for it to become an asset. You can do the following in the Prepare Mass Additions form:

•  Enter additional source, descriptive and depreciation information.
•  Assign the mass addition to one or more distributions, or change existing distributions in the Assignments window.
•   Adjust the cost of a mass addition
•   Merge a mass addition into another mass addition.
•   Split a multiple-unit mass addition into several single-unit mass additions.
•   Add mass addition lines to existing assets such as a cost adjustment.

After adding and/or updating your information, you then assign a mass addition queue to specify whether it is ready for posting. Only mass addition lines in the POST or COST ADJUSTMENT queue can be posted.

Post Mass Additions:

The posting process creates assets from mass addition lines in the POST queue using the data you entered. It also adds mass additions in the COST ADJUSTMENT queue to existing assets. You can run this program as often as you want during a period.

Expense Report

Expense Report:

Expense reports are used by employee to enter and submit expense report using a standard web browser. Oracle workflow automatically routes the expense reports for approval & enforces reimbursement policy, it integrates with oracle payables to provide quick processing of the expense report for payment.

Process of Expense report

An Employee submits an expense report for approval , the expense report workflow process begins. Workflow is used to obtain manager approval & payables approval on expense reports submitted. The Manager Spending Approval process routes the expense report to managers for approval. When an expense report gets approved by a manager, the workflow sends forward the same for approval from AP Approval process.

In case of rejection of expense report by manager , the workflow go through the rejection process.

AP Approval process determines whether the expense report requires approval from payables department. If its not required, then it gets approved.

Expense report to Invoices:

Payables pays invoices only, Before an approved expense report is paid it needs to be converted into invoice. Program Oracle Expense report Export converts the expense report into invoice in payables. Expense report export program can process only those expense reports which have been approved from both manager & AP department.

Project Budgeting & Forecasting

Project Budgeting & Forecasting:

A budget is an estimate of the financial performance of a project, we can create budget & forecast to plan & manage the project throughout the project life cycle. We can create multiple budget & forecast for a project to model the financial impact. It can be used to track ongoing project performance by comparing the budget & forecast amount to the current actual.

First step for defining a budget is to create a project . If any budget plan version is available on the project template, then oracle projects copies the same to the newly created project . On creation of project we can create & update the work plan & then create initial budget.

Initial budget version by entering details of the new budget , we can choose the below options to create one.

·         We can generate budget amount from workplan , staffing plan , & financial plan.

·         Second option - Directly enter the budget amount  & choose to calculate the cost & revenue amount from entered quantity

·         Or we can copy the budget from another existing one for the project

There are several options for updating a budget version. we can choose an adjustment option to apply a percentage of  increasing or decreasing the quantity, raw cost rate, burden cost rate, bill rate, raw cost, burdened cost, and revenue. Or we can also directly edit the quantity, rate, cost, and revenue amounts. If budget is by time period, Oracle Projects automatically distributes the edited amounts across periods based on the spread curve associated with each planning resource. When you update the quantity, cost, revenue, or rate, Oracle Projects automatically recalculates all other amounts that are dependant on the edited amounts.

You can use the batch concurrent program PRC: Generate Financial Plan Amounts for mass budget generation. When you use the batch concurrent program, Oracle Projects obtains the default values for the budget generation source and method  from the plan settings, task, and resource. The project administrator can schedule the program to run on a regular basis for all projects or for a range of projects.

Project Forecast

Process flow for defining forecasts in oracle projects is to create baseline for the initial budget version of an approved budget plan type. Oracle project automatically creates an initial forecast version from the intial baseline of an approved budget plan are met :

•          The forecast plan type is designated as either a primary cost or primary revenue forecast
• 
  
•          No forecast version exists for the plan type

While Oracle Projects usually creates the initial forecast from the initial baseline of an approved budget, you can choose to manually create the initial forecast or generate it from other sources. These sources include the workplan, staffing plan, work quantity, other financial plans, and actual amounts.

Forecasting feature provides project managers with a tool for detemining the amount ofcost incurred & revenue realized to date , as well as the estimated cost & revenue to be realized from the reminder of the project. A forecast consists of a combination of atual amounts and estimate to complete amount. Actual amounts are the actual effort, quantity, cost, and revenue amounts recorded for the project to date. ETC amounts represent the estimated effort, quantity, cost, and revenue amounts necessary to complete the project. You can periodically regenerate a forecast to include the latest actual amounts and redetermine the ETC amounts.

Payables Invoice Matching

Oracle Payables shares purchase order information from your purchasing system to enable online matching with invoices. 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.

PO  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 have a purchase order match each invoice. 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 and checks that the match is within the tolerance you defined previously.

After you save the match, Payables updates the quantity or amount billed for each matched shipment and its corresponding distribution based on the amount you enter in the Quantity Invoiced field. Payables also updates the amount billed on the purchase order distribution.

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.
•          Purchase order shipment match. Based on the Quantity Invoiced, Payables prorates the Match Amount across all nonfully billed purchase order distributions associated with the purchase order shipments you match to. Payables automatically creates 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 creates invoice distributions based on the purchase order distributions you match to.

You can match a single invoice to multiple PO  shipments, or you can match multiple invoices to a single PO  shipment. Payables ensures that you match only to PO for the supplier on the invoice and that the

purchase order and invoice currencies match.

Purchase orders are created for Inventory Items or Expense Items. The accounting entries created by matching invoices to PO’s will be different for Inventory Items as compared to Expense Items depending on whether you accrue expense items on receipt or at period end.