Payables & Cash Management

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Topic

    Marc Rose
    GL Coding in Payables
    Topic posted December 1, 2017 by Marc RoseRed Ribbon: 250+ Points, last edited January 30, 2019, tagged Payables 
    146 Views, 12 Comments
    Title:
    GL Coding in Payables
    Summary:
    Pre-code GL into Supplier
    Content:

    Oracle Payables does not remember GL coding after each invoice is processed and it appears that Distribution Sets are all or nothing which means one Distribution Set per Supplier?  We have Suppliers that are used at various business units (Company/Balancing Segment) and we want to make sure the same Natural Account is used every time while the Company Segment will change.  Does anyone know a solution?

    Lower level applications such as MS Dynamics, Sage and even QuickBooks have this simple functionality. 

    Thank you.

    Comment

     

    • Becky Alvarez

      Marc,

      You can have multiple distribution sets for a supplier.  The distribution set is done at the site assignment and you can have more then one site assignment for each site so as a result you can have more than one distribution set per site but only one distribution set per site assignment.  It is most common to have one site assignment for each site that is usually tied to one BU and usually one Site per BU.  So if you followed the standard and have one site per BU and one Site assignment per site then you can assign one distribution set per site assignment for each site for each BU.  So I am confused by your statement above   Also note that the distribution set can contain multiple GL Accounts as well.

      Please explain why you are unable to assign multiple distribution sets for each BU for your suppliers?

    • Marc Rose

      Your explanation is confusing.  We have a Supplier with a single site. We process invoices for each of my 40+ Companies (Balancing Segments) and pay the vendor with a single payment with all invoices listed.  I don't think it is efficient to have 40+ Supplier Sites for the 40+ Companies which will grow by 15+ every year.  

      • Shyam Santhanam

        Marc, 

        Your single supplier site is used by 40+ companies and you pay in one shot to the site clubbing all the invoices. Are you talking about the charge account or AP liability account here? Distribution sets are mainly for allocating the expense invoices to multiple entities (like depts). So if you create one invoice for all the 40 companies. Your distribution set could be one set with allocations to 40+ companies. You can retain the same natural account but vary BSV and other segments. 

    • Becky Alvarez

      Ok you say "We have Suppliers that are used at various business units".  Why don't you add a site assignment under the single site for each business unit and add the proper distribution set, then when you use that business unit, the distribution set should default.  This is if you are using different Business Units in the true sense.

    • Marc Rose

      We are getting our Oracle terminology mixed up.  I have one Oracle BU and one Ledger.  My balance segment has 40+ values.  I'm specifically talking about the Expense allocation not the AP liability, that is fine. 

      • Shyam Santhanam

        Marc,

        Just to understand your use case, you have invoice created per company/BSV. But within that invoice, you may allocate the expense to other segments but keep the same natural account. But you use the same supplier site. so you need distribution set per company/BSV. right? Other related question, does the user punch in the BSV/other segments on the invoice or wants the distribution set to default it? I assume the latter. Did you also create 'Legal entities' in the oracle system to represent those 40 companies or just the balancing segments? Invoices carry legal entity on the header and that could potentially be used to build the correct account using the subledger accounting (SLA) rules. 

    • Marc Rose

      Shyam,

      Yes, your assumption is correct.  In Oracle, we have one Business Unit and one Ledger.  We have many Company values (Balancing Segment - BSV).  We often receive invoices that are either allocated across Companies (BSV) but always go to the same Natural Account. The amount of the invoice and allocation across BSV's will usually be different.  We also set up each BSV as a separate legal entity as well.  Thank you for your help.

      • Shyam Santhanam

        Just delving into it further, to help you with a good answer 

        1) User scans or manually enters the invoice into the application

        2) Do you capture the 'legal entity' on the invoice header? or just let it be some default value and you dont really need accuracy?

        3) Supplier site is picked, that will default the distribution set (you expect this to be in the context of the legal entity?) Are your allocations always pre-defined by 'company code/legal entity'?

        4) User manually reviews it and makes adjustments to the allocations.   In this process, you want to make sure the natural account remains the same?

        5) Invoice is finally accounted based on the allocations.

        6) Suggestion: You could configure a 'segment override' rule in SLA for natural account. This could be a 'fixed account' based on input criteria. say you have only one 'natural' always, then the segment override rule could just hold a 'constant' value. But if you want to drive it by BSV value, then you may create a 'mapping set' with input as 'user entered BSV' and output as 'natural account' segment value. 

        Note: It is true that the supplier site could just have one distribution set assigned to it. So you can only have one basis of allocation. Multiple allocation models need multiple site creation.

         

    • Marc Rose

      1) User scans or manually enters the invoice into the application - The majority of our invoices are scanned but AP Automation does not work well so we end up manually keying the most of the invoice data when we process through the Invoice Workbench.

      2) Do you capture the 'legal entity' on the invoice header? or just let it be some default value and you dont really need accuracy? - NO

      3) Supplier site is picked, that will default the distribution set (you expect this to be in the context of the legal entity?) Are your allocations always pre-defined by 'company code/legal entity'? Yes, the allocations are defined by the Company (BSV), the Natural Account will be the same for each invoice.

      4) User manually reviews it and makes adjustments to the allocations. YES  In this process, you want to make sure the natural account remains the same?

      5) Invoice is finally accounted based on the allocations. YES

    • Marc Rose

      Why doesn't Oracle remember the coding from the prior transactions.  This would eliminate the majority of the issues since most vendors are a one to one relationship with a specific code combination and for those that are allocated over multiple code combinations, we can manually adjust as needed.  

       

       

      • Shyam Santhanam

        Thanks for your responses. When you say 'remember the coding from prior transactions' : you mean ability to look up the previous invoice for same supplier site and balancing segment and re-use the allocation model? The pain point seems to be around making sure you start with a pre-defined allocation for each company/BSV? 

    • Marc Rose

      By remember the coding I mean:  Today we key a transaction to a specific code combination (xxxx-***-xxxxx-xxxx), that specific code combination should appear the next time we process an invoice for that specific vendor.  Oracle has made itself so complicated that it can't handle the most simple tasks.