Integration of Payables with Other
ERP Modules
An Oracle White Paper
January 2011
Integration of Payables with Other ERP Modules
Introduction ....................................................................................................... 3
Oracle Assets Integration ................................................................................. 3
Mass Additions Create Flow in R12 .......................................................... 4
Mass Additions Create Program Parameters ............................................ 4
Useful Documents ........................................................................................ 5
Entity Relation Model for Accounts Payable and Assets ....................... 6
Oracle Projects Integration .............................................................................. 6
Entering Supplier Invoices and Expense Report Invoices ..................... 6
Creation of Project-Related Expense Reports.......................................... 7
Potential Problems Related to Integration ................................................ 7
Useful Documents ........................................................................................ 7
Entity Relation Model for Accounts Payable and Projects .................... 8
Entity Relation Model for Accounts Payable and Expense Reports .... 8
Oracle Purchasing Integration ......................................................................... 8
Supplier and Purchasing Integration .......................................................... 8
Useful Documents ........................................................................................ 9
Oracle Property Manager Integration ............................................................ 9
Useful Documents ........................................................................................ 9
Oracle Grants Accounting Integration ........................................................ 10
Useful Documents ...................................................................................... 10
Entity Relation Model for Accounts Payable and Purchasing ............. 11
Oracle Inventory Integration ......................................................................... 11
General Considerations .................................................................................. 11
Data Corruption .......................................................................................... 12
Payables Open Interface Issues ................................................................ 12
Conclusion ........................................................................................................ 13
Integration of Payables with Other ERP Modules
Page 2
Integration of Payables with Other ERP Modules
INTRODUCTION
Accounts payable (AP) encompasses all the transactions related to money that a
person or company owes to suppliers, but has not been paid yet. From a functional
perspective, the invoice is used to register the transactions between debtors and
suppliers, and, from a technical-design perspective, the invoice is the common
entity between Oracle Accounts Payables with other modules. Thus, the analysis of
the interconnection between the Oracle tables containing information about
invoices with other modules of the financial suite along with troubleshooting hints
is the main purpose of this paper. Assets, Projects, Purchasing, Property Manager,
Grants Accounting, and Inventory are the modules included in this review.
ORACLE ASSETS INTEGRATION
Track as asset check box must be enabled
for the item line being processed.
The Create Mass Additions program (APMACR) transfers invoice distribution to
Oracle Assets (FA) as long as the “track as asset check box” is enabled for the item
line being processed. The screen listed below shows the “Track As Asset”
checkbox.
Integration of Payables with Other ERP Modules
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Mass Additions Create Flow in R12
In R12, Accounts Payable does not validate the clearing accounts set up in FA
while inserting into the FA_MASS_ADDITIONS_GT.
AP calls the Assets validation API, which validates the invoice distribution lines.
The validation will check whether the lines meet the criteria to become mass
addition records according to the setups in FA.
The process can be summarized as follows:
1.
The AP_MASS_ADDITIONS_CREATE_PGK (apmassab.pls) is
executed when the Mass Additions Create Process is run.
2.
AP_MASS_ADDITIONS_CREATE_PGK selects the invoice
distribution records according to the GL date and book type code
parameters entered when the process is launched. Furthermore, the
invoice distributions to be selected must meet the following criteria:
a.
ap_invoice_distributions_all.assets_addition_flag = U
b. ap_invoice_distributions_all.assets_tracking_flag = Y
c.
ap_invoice_distributions_all.posted_flag = Y
The selected distributions will be inserted into the
FA_MASS_ADDITIONS_GT temporary table.
3.
The FA_MASSADD_CREATE_PKG.create_lines procedure is executed
once the FA_MASS_ADDITIONS_GT temporary table is populated.
4.
FA_MASSADD_CREATE_PKG.create_lines procedure will populate the
FA_MASS_ADDITIONS_GT table. The package is also responsible for
marking the lines as ‘Processed’ or ‘Rejected’.
5.
Control is transferred back to
AP_MASS_ADDITIONS_CREATE_PGK, which will set
ap_invoice_distributions_all.assets_addition_flag = Y if the respective
record in the FA_MASS_ADDITIONS_GT table was ‘Processed’. On
the contrary, if record is rejected, then
ap_invoice_distributions_all.assets_addition_flag = N.
Mass Additions Create Program Parameters
Two parameters are required to run the Mass Additions Create Program, which are
listed as follows:
1.
The 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.
Integration of Payables with Other ERP Modules
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In R12, a new column known as the asset book type code is available to specify the
asset book for the invoice distribution. This column can be set at the line level,
which then defaults to the invoice distribution; however, the asset book type code
on the distribution level determines which lines are selected by the Mass Additions
Create program. On the contrary, in 11i, AP fetches all the valid asset accounts to
determine the book for the invoice distribution and, subsequently, populate Assets
with the invoice distributions previously selected.
In R12, AP only validates the asset book type code on the invoice distributions
because no validation is available in the beginning. The asset book type code may
be NULL or populated with one value used during the execution. Screen shot
listed below shows the Parameters screen for the Mass Additions Create program.
In summary, the Mass Additions Create Program from AP is responsible for the
population of the FA_MASS_ADDITIONS_GT table, but Assets module is
responsible for the validation of the lines transferred from AP.
Useful Documents
Useful information can be found in the following documents:

White Paper on Mass Additions Create Process in R12 (Doc ID 567690.1)

Troubleshooting Guide for Mass Additions Create (Doc ID 133597.1)

Understanding Mass Additions Create (APMACR) and Troubleshooting from
FA perspective (Doc ID 1070597.1)
Integration of Payables with Other ERP Modules
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Entity Relation Model for Accounts Payable and Assets
ORACLE PROJECTS INTEGRATION
Information about projects can be entered for supplier invoices and expense
reports invoices when Oracle Projects is installed. The project name, task, and
expenditure information are recorded for each invoice transaction. Additionally,
the Account Generator creates a charge account for each invoice distribution with
project information associated. Project information contained in the invoice
distributions tables are transferred to projects when applicable.
Entering Supplier Invoices and Expense Report Invoices
Invoices associated to suppliers and invoices generated from expense reports can
be associated to projects.
Supplier Invoices can be created from the Invoice Workbench or via the Payables
Open Interface. The user can either enter manually the project information or the
project-related distribution set in the invoice workbench, or the system will derive
the project information from project-related purchase orders or recurring
templates. In this regard, further information can be found in the Oracle Payables
User’s Guide Release 12 page 3-274.
The invoice workbench can also be used to add project information to any existing
supplier invoice previously entered or imported.
Integration of Payables with Other ERP Modules
Page 6
Expense reports entered in Internet Expenses are processed by the Expense
Reporting Workflow, and any changes made to the expense report after import will
not be included in the workflow.
The determination of the expenditure item date for supplier invoices distribution
lines is specified in the PA: Default Expenditure Item Date for Supplier Cost
profile option. Payables and Purchasing reads this profile to determine how the
expenditure item date will be obtained.
Creation of Project-Related Expense Reports
The creation of expense reports project related encompasses the steps listed below:
1.
Population of the following expense report interface tables:
AP_EXPENSE_REPORT_HEADERS_ALL,
AP_EXPENSE_REPORT_LINES_ALL, AND
AP_EXP_REPORT_DISTS_ALL
2.
Submission of the expense reports for review, approval or rejection.
3.
After approval, population of Payables tables with the APXEXPER - Expense
Report Export; this program creates invoices in Payables with the data
extracted from the interface tables.
4.
The project information in the invoice can be modified from the invoice
workbench.
Potential Problems Related to Integration
Project accounting will not be
1.
EXPENDITURE_TYPE is the common column between
AP_INVOICE_DISTRIBUTIONS_ALL and PA_EXPENDITURE_TYPES;
therefore, project accounting will not be displayed when
AP_INVOICE_DISTRIBUTIONS_ALL and PA_EXPENDITURE_TYPES
do not share a value in the EXPENDITURE_TYPE column.
2.
Project information cannot be updated in the invoices when the PA: Allow
Override of PA Distributions in AP/PO profile option is disabled.
3.
The total amount of the invoice cannot be modified when the invoice has
already been interfaced to Oracle Projects.
displayed when
AP_INVOICE_DISTRIBUTIONS_
ALL and
PA_EXPENDITURE_TYPES do
not share a value in the
EXPENDITURE_TYPE column.
Useful Documents
Useful information can be found in the following document:

Missing Expenditure_Type in ap_invoice_distributions_all (Doc ID
1093075.1)
Integration of Payables with Other ERP Modules
Page 7
Entity Relation Model for Accounts Payable and Projects
Entity Relation Model for Accounts Payable and Expense Reports
ORACLE PURCHASING INTEGRATION
Accounts Payable is fully integrated with Purchasing via the Invoice. Invoices can
be matched to purchase orders and information related to the purchase order can
be accessed from the application. The structures currently used to store data about
invoices and purchase orders minimize the redundancy of data and facilitate the
manipulation of data from centralized places.
Supplier and Purchasing Integration
Payables shares suppliers with Purchasing. Moreover, suppliers can be entered in
either the Payables or Purchasing application and use that supplier to create
requisitions and purchase orders in Purchasing. Later on, invoices can be created,
Integration of Payables with Other ERP Modules
Page 8
within Payables, for the same supplier and match the invoices to one or more
purchase order shipments, purchase order distributions, or purchase order receipts.
Additionally, Payables and Purchasing share the lookup values, which can be used
during supplier entry. Values can be created for the following lookup types in the
Oracle
Payables Lookups window:
• Supplier Type
• Minority Group
Elsewhere, values can be created for the following lookup types in the Oracle
Purchasing Lookups window:
• FOB
• Pay Group
• Supplier Type
• Minority Group
• Freight Terms
Useful Documents

How to Match Invoices to Purchase Orders White Paper (Doc ID 198535.1)

Purchase Order Matching Frequently Asked Questions (FAQ's) (Doc ID
213480.1)

Purchase Order Matching Troubleshooting Guide (Doc ID 214273.1)
ORACLE PROPERTY MANAGER INTEGRATION
The mandatory columns of the Payables
Open Interface tables must be populated,
so that the data may be transferred to
Payables; otherwise, records will be
rejected.
Payables can be used to issue payments recorded in Oracle Property Manager. The
information related to property leases are managed in Property Manager,
subsequently, this information can be exported to Oracle Payables, via Payables
Open Interface, for further payment processing. The mandatory columns of the
Payables Open Interface tables must be populated, so that the data may be
transferred to Payables; otherwise, records will be rejected. Detailed instructions
for required and optional columns for the Payables Open Interface can be found in
the useful documents section.
Useful Documents

Using SQL to Populate the Payables Open Interface Tables (Doc ID 234886.1)
Integration of Payables with Other ERP Modules
Page 9
ORACLE GRANTS ACCOUNTING INTEGRATION
Grant Accounting includes all the features
provided by Oracle Projects plus other
functionalities related to public sector
organizations.
Grants Accounting can be conceived as an extension of Oracle Projects to provide
project management features specific for public sector organizations. Invoices,
Distribution Sets, and Distributions are the entities shared by Oracle Grant
Accounting and Payables. Grants Accounting are related to awards, which are used
to generate invoice distributions. From a functional perspective, Grants
Accounting includes all the features provided by Oracle Projects plus the following:

Multi-funded Projects

Award Management

Flexible Funds Control by Award

Powerful Indirect Costing

Online Invoice Review and Proposal

Simplified Billing

Award Status Inquiry

Award Segment in Payables Distribution Sets

Award Security

Government Reporting

Electronic Reporting

Multi-Organization Support

Integration with Oracle Labor Distribution.
Funds Check Hold in Invoices can be one of the main issues faced by Invoices
associated to Oracle Grants Accounting Invoices. Details to troubleshoot
funds check problem can be found in the note listed in the Useful Documents
section.
Useful Documents

Grants Accounting Funds Checking Troubleshooting Guide Part 2 (Doc ID
950195.1)1
Integration of Payables with Other ERP Modules
Page 10
Entity Relation Model for Accounts Payable and Purchasing
ORACLE INVENTORY INTEGRATION
Recording information associated with the movement of goods between statisticsgathering countries may be necessary to comply with the European Union’s
Intrastat requirements.
The relation between Invoices and Oracle
Inventory is obtained via the Purchase
Order.
The invoice is the main entity of the
Payables module; the invoice also
contains all the columns with which the
dependency with other financial tables
may be established.
The relation between Invoices and Oracle Inventory is obtained via the Purchase
Order. The tables MTL_SYSTEM_ITEMS_B and PO_LINES_ALL contain the
values that make possible the relational connection. Missing data or orphan
records specifically related to MTL_SYSTEM_ITEMS_B and PO_LINES_ALL
may be considered the main problem observed between Payables and Oracle
Inventory. Other errors may be related to invoice distributions, which are not
associated to purchase orders; therefore, the referential link between the Payables
and Inventory tables cannot be established.
GENERAL CONSIDERATIONS
The invoice is the main entity of the Payables module; the invoice also contains all
the columns with which the dependency with other financial tables is established.
Thus, the correct population of invoices headers and invoice distributions tables
along with other payables tables is fundamental for the integration with other
modules. The note listed below contains instructions for the implementation of
scripts to identify corruptions on invoices. These scripts identify the problematic
records and suggest potential Generic Data Fixes.
Integration of Payables with Other ERP Modules
Page 11
Data Corruption
R12 Diagnostic Scripts to Identify Corruptions on a Specific Invoice, For Which
Generic Data Fix (GDF) are Available (Doc ID 1076312.1)
Payables Open Interface Issues
Simple, PO Matched, and Project Related
are the three types of invoices that can be
created with the Payables Open Interface.
Simple, PO Matched, and Project Related are the three types of invoices that can be
created with the Payables Open Interface. Each type of invoice has specific
combinations of mandatory and optional columns, which may lead to human errors
when populating the interface tables and, consequently, several records may be
rejected records because of incomplete information. Detail information for the
population of the interface tables can be found in the document “Using SQL to
Populate the Payables Open Interface Tables (Doc ID 234886.1)”; however, several
times the rejection messages found in the debug log file of the Payables Open
Interface may not be very descriptive, such as when PO Matched Invoices are
rejected because of Insufficient Receipt Information or Invalid Purchase Order.
To minimize user error when populating interface tables with PO Matched
Invoices, PL/SQL code to populate interface tables for PO Matched Invoices is
included below; this code only populates required columns and includes validation
statements with tables from other modules. Code can also be modified to insert
more invoices and lines.
DECLARE
ap_header
ap_invoices_interface%ROWTYPE;
ap_lines
ap_invoice_lines_interface%ROWTYPE;
x
NUMBER;
y
NUMBER;
BEGIN
FOR x IN 1 .. 1
LOOP
-- Get invoice_id -SELECT ap_invoices_interface_s.NEXTVAL
INTO ap_header.invoice_id
FROM DUAL;
ap_header.invoice_num := 'TEST-' || SYSDATE || '-' || x;
-- Here enter the segment1 (purchase order number) and org_id
SELECT t1.segment1, t1.org_id
INTO ap_header.po_number, ap_header.org_id
FROM po_headers_all t1
WHERE t1.type_lookup_code = 'STANDARD'
AND t1.approved_flag = 'Y'
AND (t1.closed_code IS NULL OR t1.closed_code = 'OPEN')
AND t1.org_id = &org_id
AND t1.segment1 = &po_number;
ap_header.invoice_amount := 100;
SELECT
INTO
FROM
WHERE
t1.lookup_code
ap_header.SOURCE
ap_lookup_codes t1
t1.lookup_type = 'SOURCE' AND t1.lookup_code = 'INVOICE GATEWAY';
-- Insert an invoice header -INSERT INTO ap_invoices_interface
(invoice_id, invoice_num,
po_number, invoice_amount,
SOURCE
)
VALUES (ap_header.invoice_id, ap_header.invoice_num,
ap_header.po_number, ap_header.invoice_amount,
ap_header.SOURCE
);
-- Insert invoice line -FOR y IN 1 .. 1
LOOP
Integration of Payables with Other ERP Modules
Page 12
ap_lines.invoice_id := ap_header.invoice_id;
SELECT ap_invoice_lines_interface_s.NEXTVAL
INTO ap_lines.invoice_line_id
FROM DUAL;
ap_lines.line_number := y;
ap_lines.line_type_lookup_code := 'ITEM';
ap_lines.amount := ap_header.invoice_amount;
SELECT t2.po_header_id, t2.po_line_id,
t3.line_location_id
INTO ap_lines.po_header_id, ap_lines.po_line_id,
ap_lines.po_line_location_id
FROM po_headers_all t1, po_lines_all t2, po_line_locations_all t3
WHERE t1.po_header_id = t2.po_header_id
AND t2.po_line_id = t3.po_line_id
AND t1.segment1 = ap_header.po_number
AND ROWNUM < 2;
INSERT INTO ap_invoice_lines_interface
(invoice_id, invoice_line_id,
line_number, line_type_lookup_code,
amount, po_header_id,
po_line_id, po_line_location_id
)
VALUES (ap_lines.invoice_id, ap_lines.invoice_line_id,
ap_lines.line_number, ap_lines.line_type_lookup_code,
ap_lines.amount, ap_lines.po_header_id,
ap_lines.po_line_id, ap_lines.po_line_location_id
);
COMMIT;
END LOOP;
END LOOP;
END;
CONCLUSION
Accounts payable (AP) encompasses all the transactions related to money that a
person or company owes to suppliers, but has not been paid yet. The invoice is
used to register the transactions between debtors and suppliers, and, technically the
invoice can be considered the common entity between Oracle Accounts Payables
with other modules. Payables is directly related to Assets, Projects, Purchasing,
Property Manager, Grants Accounting, and Inventory. Some relevant aspects
about the functional and technical aspects of the modules previously discussed are
listed as follows:

Track as asset check box must be enabled for the item line being processed.

Project accounting will not be displayed when
AP_INVOICE_DISTRIBUTIONS_ALL and PA_EXPENDITURE_TYPES
do not share a value in the EXPENDITURE_TYPE column.

The mandatory columns of the Payables Open Interface tables must be
populated, so that the data may be transferred to Payables; otherwise, records
will be rejected.

Grant Accounting includes all the features provided by Oracle Projects plus
other functionalities related to public sector organizations.

Simple, PO Matched, and Project Related are the three types of invoices that
can be created with the Payables Open Interface. Each type of invoice has
specific combinations of mandatory and optional columns, which may lead to
human errors when the interface tables are populated.
Integration of Payables with Other ERP Modules
Page 13
Integration of Payables with Other ERP Modules
January 2011
Author: Luis J. Gonzalez – [email protected]
Oracle Corporation
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