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    Anil Nair
    How to route the invoice to different legal entities using...
    Topic posted February 14, 2019 by Anil NairBronze Medal: 1,250+ Points, tagged Configuration, Financials, Invoice Imaging, Payables, Sample Reports, Search, Setup / Administration, Update 
    205 Views, 5 Comments
    Title:
    How to route the invoice to different legal entities using AP Invoice Scanning
    Summary:
    How to route the invoice to different legal entities using AP Invoice Scanning
    Content:

    We have 5 legal entities which are linked to one business unit.

    I want to send the AP invoice scan image using the AP scanning solution and it should correctly identify the legal entities for each invoice.

     

    Comment

     

    • Becky Alvarez

      Anil,

      Here is how Imaging and well AP in general defaults the LE for an invoice.

      Is this PO Matched? 

      For invoices matched to purchase orders, the legal entity is derived from the purchase order header.

      For Non-PO invoices, the invoice legal entity defaults in the following order:


      1. The legal entity assigned to the primary balancing segment value of the supplier site assignment liability account. If this is blank, then

      2. The legal entity defaults based on the legal entity assigned to the bill to location. If this is blank, then

      3. The legal entity defaults based on the default legal entity of the Payables Invoicing business unit.

      At the end of the day, the legal entity can be overridden in the Create Invoices page.

      You can find more information in the

      Shared Services White Paper

      Hope this helps.
       

      • Anil Nair

        Thanks Becky.

        Majority of the AP invoices are PO matched but there are few Non PO invoices as well.

        For PO matched invoices for scanned images, can you confirm if the legal entity is derived from line level matching or the Identifying PO number field?

        For Non PO invoices, the bill to location is always refer one and refers to the default legal entity and liability account on the supplier site will be blank.So both these options will not work to derive the correct legal entity on invoice.Can you suggest any other workaround?

    • Becky Alvarez

      I am verifying what happens when you have multiple POs per on an invoice enabled for imaging but I am pretty sure that since the header PO field will be blank it will default back to the Supplier as if it is a non-PO invoice but as I am verifying that. 

      For Non PO what do you do for manually entered invoices as I believe that is how we default the LE when you enter an invoice in the UI?  Why can't you populate the liability account on the Supplier Site?

      I will let you know when I find out about the line level POs.

      • Anil Nair

        Hi Becky,

        Did you get a chance to verify how the PO matches invoices derive the legal entity (especially if there are multiple POs)? Do we have to enable multiple POs on the invoice option separately using Oracle SR?

        1. For non PO invoices, how the legal entity can be derived, do you mean the supplier site liability account can derive legal entity for the AP invoices? I'm not sure how the account code combination will provide the legal entity name for the invoice.Please explain.

        2. Let's say we populate the supplier site assignments liability account, site assignments only allow one liability account which refers to one legal entity.We have 1 BU and 5 legal entities.How do we cater to the other legal entities with just 1 BU?

        3. In AP invoice scanning, what happens when there is one address and 5 supplier sites using the same address i.e. only one address.How the AP scanning solution will derive the correct Supplier SITE.

        The client doesn't process/create any manual invoices and all the AP invoices will be processed through the AP Invoice scanning solution. 

        Thanks.

    • Becky Alvarez

      1) For the Non-PO the legal entity will follow the hierarchy I listed above, 

      • 1. The legal entity assigned to the primary balancing segment value of the supplier site assignment liability account. This is the default liability account you enter on the Supplier site assignment setup page when you are creating the supplier.  This is basically it's company code or BU.  If this is blank, then
      • 2. The legal entity defaults based on the legal entity assigned to the bill to location. If this is blank, then
      • 3. The legal entity defaults based on the default legal entity of the Payables Invoicing business unit.

      2) Leave the Liability account blank (in that case it will default to the liability account set up under AP and Procurement Common Setups will be used) and use the bill to location to get the the LE.

      3) Why do you have 5 sites using the same identical address for a supplier?  How is imaging going to know which one to use?   It won't.  It is going to come in as incomplete and someone is going to have to select which site to use.  Unless there is something unique on each address on each site that is also matches to the invoice address, imaging isn't going to magically know which site to pick out of 5 identical matches.

      Yes you have to log an SR to enable multiple POs per invoice or PO recognition at the line level.  Completely supported but just not enabled out of the box.