Pay on Receipt Process

The Pay on Receipt process enables you to automatically create standard, unapproved invoices for payment of goods based on receipt transactions. Invoices are created using a combination of receipt and purchase order information.

You can automatically create invoices with multiple items and distribution lines, and include tax. You define which supplier sites participate in Pay on Receipt and enforce matching rules to ensure that the proper payments are made to the suppliers.

Important features of the Pay on Receipt process include:

• Interfacing with Oracle Accounts Payable
• Setting up suppliers and supplier sites
• Matching invoices to purchase orders or receipts
• Delaying payment on receipt
• Creating invoices with multiple items and multiple distribution lines
• Defining invoice consolidation levels
• Other features

Interfacing with Accounts Payable

The Pay on Receipt program automatically creates an invoice batch depending on the options set for the supplier and supplier site. The supplier site must be set up as a Pay on Receipt site. Specifically, the Pay on receipt option must be selected for the supplier site for self-billed invoices.

Setting Up Suppliers and Supplier Sites

You can enter supplier information on the Sites tab of the Edit Suppliers page to identify which suppliers are eligible for Pay on Receipt and can have their invoices automatically created using the Pay on Receipt program.

Matching Invoices to Purchase Orders or Receipts

When the Pay on Receipt process runs, it automatically performs invoice matching to the purchase order or receipt, depending on which Invoice Match option was chosen for the shipment.

Delaying Pay on Receipt

You may want to allow time for corrections or returns against the receipts before using the Pay on Receipt process to automatically convert the receipts into invoices. The ERS aging period profile option enables you to specify this delay period between the receipt date and the invoice creation date.

Creating Invoices with Multiple Items and Multiple Distribution Lines

When creating multiple distribution lines for invoices with partial receipt quantities, the Pay on Receipt process prorates the charges across all your purchase order distribution lines (for the received item).

Defining Invoice Consolidation Levels

The level of invoice consolidation determines how the Pay on Receipt process creates an invoice for each run of the program. For invoices created based on receipt transactions, you set up invoice consolidation levels for an individual pay site in the Supplier Site user interface. The invoice levels include Pay Site , Packing Slip , and Receipt .

Other Features

There are several other important features of the Pay on Receipt process.

These features include:

• Creating debit memos: You can choose to automatically generate debit memos for return to supplier transactions once the Pay on Receipt process creates the invoice.
• Enabling Pay on Receipt for individual purchase orders and releases: You can enable Pay on Receipt for individual purchase orders and releases by using the Pay On field in the Terms and Conditions page.
• Changing invoice prefixes: You can find Pay on Receipt invoices by using the Find Invoices window in Oracle Payables to search for any invoice in your system containing the prefix ERS-. However, you can change this prefix, using the ERS Invoice Number Prefix profile option. For example, shortening this prefix allows extra spaces for longer packing slip or receipt numbers.
• Supporting self-billing invoices: The Self-Billing Invoice process is an automated invoicing process where the buying company creates an invoice on behalf of the supplier.
• Enforcing match approval levels to ensure proper payment: Two-, three-, and four-way match approval levels are enforced by Oracle Payables if you specify two-, three-, or four-way for the supplier site match approval level.