Oracle Applications

White Paper
How to Use AP Hold Resolution Workflow in R12
Contributors:

Sanjay Prasad

Reviewer:

Sriram Ramanujam

Versions:

1.0

Create Date:

07-OCT-2013

Update:

R12 : White Paper on AP Hold Resolution Workflow - Doc ID 1590008.1

Contents
INTRODUCTION ....................................................................................................................................................3
Objective .........................................................................................................................................................3
Scope/Out of Scope .........................................................................................................................................3
Terms Used .....................................................................................................................................................3
BUSINESS CASE ...................................................................................................................................................4
Methodology ...................................................................................................................................................4
Business Example ...........................................................................................................................................4
SETUP ..................................................................................................................................................................6
Setup in Payables ...........................................................................................................................................6
Setup in System Administrator ........................................................................................................................9
Setup in AME ................................................................................................................................................ 10
TRANSACTION FLOW ......................................................................................................................................... 13
Business Flow 1 ............................................................................................................................................ 13
Business Flow 2 ............................................................................................................................................ 25
TECHNICAL DETAILS ......................................................................................................................................... 30
AP Invoice Hold Notification ....................................................................................................................... 30
AP Invoice Hold Negotiation ........................................................................................................................ 31

R12 : White Paper on AP Hold Resolution Workflow - Doc ID 1590008.1

Introduction
Objective
How to use AP Hold Resolution workflow in Oracle Payables Release R12.X.X

Scope/Out of Scope
In this white paper we will cover followings:
a) Setup in Oracle Payables to enable AP Hold Resolution Workflow
b) Configure AME (Approval Management Engine) to use AP Hold Resolution Workflow
c) Guide explaining how to use AP Hold Resolution Workflow for Business transaction
This paper does not cover:
a) How and why System places hold on Invoice
b) Details of Generic AME setup
c) Supplier contact directory setup

Terms Used
AME : Approval Management Engine
Invoice : Oracle Payable Invoice
PO : Purchase Order Transaction
Matching Hold : Holds resulting due to discrepancy between Purchase Order and Invoice

R12 : White Paper on AP Hold Resolution Workflow - Doc ID 1590008.1

Business Case
Methodology
AP Hold Resolution Workflow can be used to automate resolution (releasing) of Hold by using
workflow. By using AP Hold Resolution, the hold details can be routed to a designated user for
his/her decision on how to release the hold. User can take decision on notification like release the
Hold, correct the invoice data to get the hold released, check / negotiate with supplier if there is any
discrepancy in Invoice sent by supplier etc. There may be many business scenarios arising in this
flow. To explain the feature we will discuss Matching Hold Resolution/Negotiation which covers
wider spectrum of the feature.

Business Example
To explain Matching Hold Resolution/Negotiation we will take business example , go through
different steps to complete business flow and to get the hold released by using workflow.
We will discuss following 2 business examples ;
1) Supplier Cancels the Invoice: Due to discrepancy in Suppliers invoice, system places a
matching Hold. The hold ultimately gets routed to supplier as a negotiation to have the
discrepancy corrected, after review of discrepancy supplier finds mistake and decides to
cancel the invoice. Following different activities would be performed in sequence:
a. Raise Purchase Order to buy material from supplier.
b. Supplier delivers Material.
c. Supplier sends Invoice. (To generate discrepancy we will have supplier invoice for
quantity more than delivered)
d. Record the Invoice as sent by supplier
e. On performing validation of Invoice, system places Quantity Received hold
(Matching hold) as Quantity of Invoice is more than quantity received
f. Notification about discrepancy between PO and Invoice goes to Buyer of PO
g. Buyer reviews the data and decides to Negotiate with Supplier on Discrepancy
h. Supplier reviews the negotiation and decides to cancels the invoice.
i. In Payables Invoice gets cancelled automatically.
2) Supplier Accepts the Negotiation: Due to discrepancy in Suppliers invoice, system places a
matching Hold. The hold ultimately gets routed to supplier as a negotiation to have the
discrepancy corrected, after review of discrepancy supplier finds mistake and decides to
accept the negotiation. Following different activities would be performed in sequence:
a. Raise Purchase Order to buy material from supplier.
b. Supplier delivers material.

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c. Supplier sends Invoice. (To generate discrepancy we will have supplier invoice for
quantity more than delivered)
d. Record the Invoice as sent by supplier
e. On performing validation of Invoice, system places Quantity Received hold
(Matching hold) as Quantity of Invoice is more than quantity delivered
f. Notification about discrepancy between PO and Invoice goes to Buyer of PO
g. Buyer reviews the data and decides to Negotiate with Supplier on Discrepancy
h. Supplier reviews the negotiation and decides to accept the correction.
i. In Payables Invoice data gets corrected according to the negotiation accepted

R12 : White Paper on AP Hold Resolution Workflow - Doc ID 1590008.1

Setup
Setup in Payables
To use workflow for a specific Invoice Hold, hold definition need to be configured.
Navigation: Payables> Setup> Invoice> Hold and Release Names

Query the Hold for which we want to use AP Hold Resolution Workflow.
Enable Initiate Workflow. This makes the respective Hold to be eligible for Hold resolution
workflow.
Notify After: Value for this determines, when the hold notification to be sent to respective one who is
supposed to resolve the hold. If its set to zero, then the moment system places hold, system notifies
the respective one for hold resolution.
Remind After: Value for this is used to determine, after how many days a reminder notification would
be sent to approver.
As per above definition of Hold, Qty Rec is selected for Hold Resolution workflow. This particular hold is
related to Tolerances configured, hence lets review respective Tolerance set up.
Navigation: Payables>Setup>Invoice>Tolerance

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Tolerance is 0%, this means if there is any difference between quantity received and billed, system will place
Qty Rec hold on respective Payable Invoice. This control would be applicable for the invoices of the suppliers
who have above tolerances attached. Lets review Supplier Setup

Navigation: Payables>Suppliers>Entry
Query the supplier

Navigate to Invoice Management tab:

Note:
Value for Invoice Tolerance: SAN-GOODS

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In the business scenario we are discussing, there is interaction with supplier, hence set up Suppliers contact
directory
Navigate Contact Directory

Note:
Username:sanjay.p.prasad@oracle.com
This is contact e mail id of the supplier, same is taken as user name for suppliers log in. Name of the Supplier
contact is Sanjay Prasad. The moment Supplier contact is created, system automatically creates FND User,
Respective user created would be discussed in Setup in System Adminstrator Section.
This completes setup in Payables.

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Setup in System Administrator

In System Administrator, we will review FND Users.
In respect of approval following two FND Users is point of interest:
1) Requestor/Buyer: User who requests material for purchasing. This user would be employee of the
organization. In our example user name is SAN attached with employee Prasad1 , Mr. Sanjay.
2) Supplier Contact: User who responds to negotiations from supplier side. This user would be an
external party attached with Supplier contact. In our example user name is
sanjay.p.prasad@oracle.com attached with supplier contact SANJAY PRASAD (as shown in supplier
contact directory in Setup in Payables section)
Navigation: System Adminstrator > Security > User > Define
User Definition of Buyer:

Note:
Person: Employee Prasad1, Mr. Sanjay
User Name: SAN
User Definition of Supplier Contact:

Note:
Customer: Supplier Contact Name Sanjay Prasad
User Name: E mail id of the Supplier contact SANJAY.P.PRASAD@ORACLE.COM
This completes setup in System Administrator.

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Setup in AME
For approval AME needs to be configured. System does provide seeded approver group and rules,
lets review those.
Approver Group Setup
Navigation: Approvals Management Business Analyst>Setup>Approver Groups
Review AP_HOLDS_RESOLUTION_APPROVER_GROUP

Attribute Setup
Navigation: Approvals Management Business Analyst >Setup>Attribute
Review attribute HOLD_LOOKUP_CODE

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To check details Click on Update

As per above definition, this attribute derives hold_lookup_code for the specific hold placed on invoice

Condition Setup
Navigation: Approvals Management Business Analyst >Setup>Conditions
Review Condition HOLD_LOOKUP_CODE in (AMT ORD, AMT REC, PO REQUIRED, PRICE, QTY
ORD, QTY REC)

As per definition this condition refers the attribute HOLD_LOOKUP_CODE to get hold placed in invoice and
checks whether the hold on invoice is related to matching hold listed in the list shown above.

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Rule Setup

Navigation: Approvals Management Business Analyst >Setup>Rules

Review rule Negotiable Matching Hold Exists

This completes set up in AME, in summary if hold look up code is in AMT ORD, AMT REC, PO
REQUIRED, PRICE, QTY ORD, QTY REC, approval is required from approver as per approver group
AP_HOLDS_RESOLUTION_APPROVER_GROUP
This completes Setup.

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Transaction Flow
To have better understanding we are going to discuss step by step guide to test business scenarios.
As discussed earlier, we will be discussing following two different business scenarios:
1) Supplier cancels the invoice during Negotiation
2) Supplier accepts Negotiation

Business Flow 1
Step 1: Create PO

Business Activity: As per need, organization raises Purchase Order

Navigation: Purchasing Responsibility>Purchase Orders>Purchase Order

Lets create a Purchase Order for Supplier SUP100 for qty. 10

Point to note:
Supplier: SUP100
Quantity: 10

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Click on Shipments button

Click on More tab

Note:
Match approval level: 3-Way
Invoice Match Option: PO

Click on Distributions Button

Note:
Requester: Prasad1 , Mr. Sanjay. FND User attached to requestor is SAN(refer Setup in System Adminstrator
Section).

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Approve the PO

PO#7149 is approved

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Step 2: Create Receipt

Business Activity: Supplier sends material/service and Organization receives. Organization creates
receipt against PO#7149. Lets assume Supplier sends Qty 1 against the Qty 10 ordered in PO#7149
Navigation: Purchasing Responsibility>Receiving>Receipt

Select respective Receiving organization

Click on Ok button

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Enter PO#, Click on Find button

Received Quantity: 1

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Step 3: Create Payable Invoice

Business Activity: After sending material, supplier sends Invoice. Organization creates Invoice. Lets
assume that supplier sends invoice for Quantity 2 instead of shipped Quantity 1.
Navigation: Payable Responsibility>Invoices>Entry>Invoices

Create PO Matched Invoice

Note
PO#:7149
Invoice#TR270813-02
Click on Match Button

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 Click on Find button

Note

Qty Invoiced: 2 (As mentioned earlier, supplier sent invoice for 2 Qty)
Click on Match button

Navigation: Actions>Validate
Click on Ok button

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Note

On validation, as expected system places Qty Rec hold due to following discrepancy in quantity:
Billed: 2
Received: 1
And so system placed Qty Rec hold.
For Qty Rec hold Initiate Workflow is enabled and so value for WF Status is Started for Qty
Rec hold on Invoice.
As per AME setup the notification would go to FND User attached with Requestor Prasad1, Mr.
Sanjay on respective PO.
To Check whom approval notification is sent:
Navigate: Reports>View Invoice Approval History

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Step 4: Review Hold Notification

Business Activity: Requestor of PO, Prasad1, Mr. Sanjay, logs into system and reviews the
notification related to Discrepancy
Navigation: User Log in Page

Click on Login

Navigate>Workflow User Web (New)>Notifications

Click on the respective Notification link

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Note:

Followings are actionable item:

Acknowledge: In case requestor expect that hold should be released by system automatically when
supplier sends additional 1 quantity, select Acknowledge.
Release: Use this action in case requestor accepts the discrepancy and agrees to release the Hold.
Reassign: Use this action if requestor wants someone elses opinion.
If you choose to negotiate > Invoice Action Items: Review invoice data details
Click on Invoice Action Items

Note:

Followings are actionable item:

Acknowledge: In case requestor expect that hold should be released by system automatically when
supplier sends additional 1 quantity, select Acknowledge.
Release Hold: Use this action in case requestor accepts the discrepancy and agrees to release the
Hold.
Negotiate: After reviewing invoice data, requestor feels that Quantity sent in Invoice is not correct
so decides to negotiate on discrepancy identified.
As discussed earlier, the business flow we are testing, involves negotiation on invoice so lets do
followings:
Change quantity to 1 from 2
Select Supplier Contact from LOV
Click on Negotiate button.

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System sends notification to Supplier Contact.

Step 5: Supplier Acts on Negotiation

Business Activity: Supplier reviews the discrepancy. Supplier realizes the mistake and decides to
cancel the invoice.
Navigation: User Log in Page

Log in with Suppliers credentials

Click on Login

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Click on Respective Notification

Note

Followings are actionable item:

Accept: Use this action if supplier agrees with change in quantity to 1 from 2 on invoice sent.
Cancel Invoice: Use this action if supplier agrees to cancel the invoice sent with an intent to send
new corrected invoice
Reassign: Use this action if supplier wants someone elses opinion.
As per the business flow we are discussing, lets Cancel the Invoice.
Click on Cancel Invoice

System should cancel the invoice

Lets review the Invoice in Payables Responsibility:

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Note:

Invoice#TR270813-02
Status: Cancelled
This completes Business Flow 1 with expected result of Automatic cancellation of Invoice based on
Suppliers decision on Negotiation.

Business Flow 2
Till system routes Qty Rec hold to buyer, activities in this business flow is same as to respective
ones in Business Flow 1, hence elaboration in this section starts from Step 4 : Review Hold
Notification . Before we begine with Step 4 : Review Hold Notification , lets have look on
Invoice#TR260813-03 on which Qty Rec hold is placed:

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Step 4: Review Hold Notification

Business Activity: Requestor of PO, Prasad1, Mr. Sanjay, logs into system and reviews the
notification related to Discrepancy
Navigation: User Log in Page

Click on Login

Click on the Notification link for Invoice#TR260813-03

To review the invoice click on link for Invoice Action Items:

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Note:

Followings are actionable item:

Acknowledge: Use this action in case requestor wants to acknowledge and review the hold later.
Release Hold: Use this action in case requestor accepts the discrepancy and agrees to release the
Hold.
Negotiate: After reviewing invoice data, requestor feels that Quantity sent in Invoice is not correct
so decides to negotiate on discrepancy identified.
As discussed earlier, the business flow we are testing involves negotiation on invoice lets do
followings:
Change quantity to 1 from 2
Select Supplier Contact from LOV
Click on Negotiate button.
This action sends notification to Supplier contact.
Step 5: Supplier Acts on Negotiation

Business Activity: Supplier reviews the discrepancy. Supplier realizes the mistake and decides to
cancel the invoice.
Navigation: User Log in Page

Click on Login

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 Click on Notification related to Invoice#TR260813-03

As per business flow we are discussing

Click on Accept
This should release the release the hold on Invoice automatically.
Lets review the Invoice in Payables Responsibility:

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Hold is released.
This completes Business Flow 2 with expected result.

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Technical Details
Following two workflows are used in AP Hold Resolution Workflow (apfhanwf.wft)
1) AP Invoice Hold Notification
2) AP Invoice Holds Negotiations

AP Invoice Hold Notification

This workflow is used to route/process Hold business process.
Internal Name: APINVHDN
Item Key: HOLD_ID for the hold in AP_HOLDS_ALL

Detail of the workflow can be analyzed as per requirement, would like to highlight few points here:
Legend 1: Exists Initial Wait-This particular node does below:
It checks if there is any wait. The wait is determined as per value set for Notify After as
explained in Setups in Payable-> Hold and Release Names.. If value is set as Non zero for the
specific hold then value for this is returned as Yes and system does not send notification (PO
Matched Hold Notification or PO Unmatched hold approval notification) and moves to Wait
node.

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System waits for number of days (value setup in Notify After) and then on running workflow
background process system moves to next nodes as per workflow definition.
Respective Technical code: AP_WORKFLOW_PKG.exists_initial_wait
Legend 2:Is NegotiableHold?- At this node system checks if respective Hold a Negotiable Hold.
If the respective hold code is in 'PRICE', 'QTY ORD', 'QTY REC', 'AMT ORD', 'AMT REC'
System treats that as Negotiable hold. Any other hold is considered as its not a Negotiable
Hold and its processed as per definition in workflow shown above.
Respective Technical Code: AP_WORKFLOW_PKG.is_negotiable_flow

AP Invoice Hold Negotiation

This workflow is used in case business goes for negotiation.
Internal Name: APINVHDE

Legend 1: Get Supplier Contact- At this node system gets Suppliers contact details which we have defined in
Suppliers contact directory set up.
Respective Technical Code: AP_WORKFLOW_PKG. get_supplier_contact

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