Supplier Management

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    Piyush Singh
    Capturing Supplier Bank Accounts at Different Supplier...
    Topic posted August 29, 2018 by Piyush SinghGold Trophy: 10,000+ Points, tagged Tip 
    223 Views, 3 Comments
    Title:
    Capturing Supplier Bank Accounts at Different Supplier Levels
    Summary:
    Points to consider when capturing supplier bank accounts at different supplier levels
    Content:
    Supplier bank accounts facilitate electronic payments from the buying organizations to the suppliers against Invoices. To ensure that suppliers receive payments in right bank accounts and for better usability, Oracle Cloud allows segregating bank accounts for suppliers at different profile levels, which are:
    1. Profile
    2. Addresses
    3. Sites
    Capturing supplier bank accounts at different supplier levels affects the defaulting of bank accounts on Invoices. The defaulting mechanism is as follows:
    Application first looks for valid bank account captured for the site for which the invoice is created. If no valid bank account identified, it looks for a valid bank account captured at the address level. The address looked for is the one to which site belongs. Again, if no valid bank account identified, application looks for a valid bank account at profile level. If no valid bank account identified at any of these levels, then no bank account defaults on the invoice and user has to select the right option.
    This implies that application considers all supplier levels to pick the right bank account for defaulting, and not just a specific level. 
    Review following use cases that provide details on when to capture bank accounts at different levels: 
     
    Use cases:
    1. Suppliers who transact in single currency and always receive payments in one specific bank account, irrespective of number of addresses, will have just one bank account. In such cases, capture the bank account at profile level.
    2. Suppliers can transact in multiple currencies identified through different bank accounts, but have all supplier addresses sharing same bank accounts to receive payments from the buying organization. In such cases, capture the bank accounts at profile level.
    3. Suppliers can have multiple addresses and each address independently transacts with the buying organizations i.e. each has unique bank accounts to receive the payments. For such cases, capture the bank accounts at address level.
    4. Suppliers can have multiple addresses and some of them independently transact with the buying organizations i.e. have unique bank accounts to receive the payments. The rest of the addresses share same bank account to receive the payments from buying organization. For such cases, capture the bank accounts at address level for addresses that have unique bank accounts to receive payments. For other addresses sharing same bank account, capture the bank account at profile level.
    5. Suppliers can have very complex business structure wherein for same address they provide different bank accounts to receive payments from different business units (identified through supplier sites) of the buying organizations with which they transact. For such cases, capture the bank accounts at site level.
    6. Similar to point 4 above, capture bank accounts for site only when the site has a unique bank account to receive the payments. For sites that share same bank account, capture the bank account at the address level or profile level following the cases detailed above.
    7. In certain cases, addresses or sites share same bank accounts, but each treats different bank accounts as their primary. In such cases, first create all bank accounts at profile level. Identify the bank account that is primary to most of the supplier addresses or sites. Mark this bank account as primary at profile level. Now, select and add the bank accounts that are primary for other addresses or sites at address level or site level and make them primary at that level.
    Best practice: 
    Capture the bank accounts at profile level first and then capture them at other levels only if there is a business use case as explained earlier.

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