Workshop 1 Order Common GEMMS and AP Setup Questions The Oracle Accounts Payable (AP) module and GEMMS

Purchase Order module have several items in common which must be setup accordingly. All data should be in capital letters. I. Terms. Payment and Receivables Terms must be setup in AP. The Name field must only be 4 characters. What credit and payment terms do you normally use? Example: 2 in 10, Net in 30 would be for 2% discount if paid in 10 days. After 10 days 100% is due and will be late after 30 days. A sample code might be 2N10. List all the credit and payment terms you use. II. Discounts. Do you take advantage of discounts? Do you want to take discounts in the Oracle system? III. FOB and Freight Terms must match in Oracle and GEMMS. They are limited to 4 characters and the GEMMS default: NONE must also be setup. Sample: FOBD for Destination, FOBS for source, etc. IV. Locations. AP Locations must correspond to GEMMS warehouses. The Ship-To Site, Bill-To Site, and Receiving Site should all be marked as Yes. List the warehouses to be used in the system. Include a code name, descriptive name and address. Other locations to identify are the address for your organization to be included on 1099 statements and all office locations. Provide the complete address. V. Buyers. Setup buyers in Oracle to match the buyers in GEMMS. They must first be setup as employees with a maximum of 8 characters for the last name. The default buyer NONE must also be setup. List the buyers to be setup in the system. They should already be included in the list of users with responsibilities for Purchases or AP. VI. Vendor GL Class Descriptive Flexfields are needed in the Vendor Site screen if Vendor GL class is used in Account Mapping for GEMMS. Maximum of 8 characters allowed. How do you classify your vendors? Do purchases from certain vendors always affect a certain account? List the classes and the accounts. VII. Define Vendors. The vendor number in Oracle combined with the vendor site name will be the Number used by GEMMS. Consider the coding conventions you want to use in numbering or naming different vendor sites. The maximum number of characters for GEMMS is: ____. Also include employees as vendors.

VIII. Who will be responsible for maintaining the list of vendors? Both systems need to be considered unless it is integrated. IX. How will the list of vendors be converted for Oracle and GEMMS? Who will review to avoid duplicate vendors? Who will enter the data into the system? Is automated data conversion desirable? X. Units of Measure (UOM): Define GEMMS UOM Types as UOM Classes in Oracle. The name of the each UOM may not exceed 4 characters. Provide conversions for any non base unit of measure. (Old version only allowed 3 characters for the Name and Abbreviation.) Weight - Pounds - LBS Volume Also define statistical UOM for GL. purposes only. An example might be headcount, used for each department. Pounds Headcount Pallets XI. Set up Line Types to match Acquisition Cost Codes. Acqui_cost is mandatory (Value bases = Quantity, unit price = $1.00). XII. Decide on the matching tolerances for approving an invoice from a vendor when comparing the purchase order quantity, price and tax amount, the received quantity and the invoice quantity, price, total amount and tax amount. This is optional. Enter 100% if you tolerate all discrepancies, 0% if no discrepancy is allowed. Tolerances can be specified for the following: 1. Quantity Ordered Percent 2. Maximum Quantity Ordered Amount 3. Quantity Received Percent 4. Maximum Quantity Received 5. Price Percent 6. Price Quantity

7. Exchange Rate Amount 8. Shipment Amount - Quantity 9. Total Amount - Percent or Quantity 10. Tax Percent 11. Tax Amount Workshop 2 Accounts Payable AP General Setup Questions This section is designed to answer questions that specifically pertain to the AP module regardless of the interface with GEMMS. These items must be setup prior to any processing. I. Distribution Sets - Distribution sets speed data entry but they are optional. List the expense or asset items or sets of items that are entered regularly and their accounting flexfield combination. This may include shipping. Define as many as you think will help you, naming each distribution set so that it indicates what it is used for. A distribution set may have more than one account. You may assign a percentage to each line to indicate how much of the total of the invoice should be expensed to that distribution line or you may just use the distribution lines as a shell. II. Taxing Authorities - List all the taxing authorities and rates you use for calculating sales tax and use tax. (This may be required in GEMMS also.) You need to list a tax name, tax rate and the account to use for creating the tax distribution line. Decide whether you want to enter a default tax name for each vendor site. (You can override the default tax rate and tax name but you speed up data entry if the default is the usual value.) Do you want Oracle to calculate the tax automatically? If not what percentage difference from Oracles calculation will you tolerate? (Oracle will place a hold on any invoice with a tax amount outside the tolerance you define.) III. Invoice approval - Are there standard reasons you would put an invoice on hold? Oracle will not post or allow payment of an invoice that is on hold. Some reasons the system already includes are: incomplete distribution accounts, invalid distribution accounts, tax variance, invoice total does not match distribution total, vendor on hold Define any other hold reasons that are appropriate for your business. IV. Vendors - In AP you may group your vendors for reporting and payment purposes. For reporting you may want to list invoices for raw material vendors, employees, and office supplies separately. For payment purposes you may want only two groups: vendors and employees.

Decide how you would like to categorize vendors and list the groups for reporting and the groups for payments. It is most efficient to decide before entering vendors in the system, so that the vendors may be setup easily. However you may make changes later. V. Payment formats - Provide a sample of the check stock for each bank account you use for accounts payable payments. Assign a name to each sample. (This name will become the payment format document name.) If the documents do not fit with the predefined formats Oracle provides, are you willing to change the stock or will you create your own custom printing program? Do you use different check stock for manual checks versus computer generated payments? VI. Bank Accounts - Certain bank information must be setup to create payments. Some optional information may also maintained in Oracle if desired. Provide the required information for each bank account as listed below. The optional information is listed in italics. (You may have more than one account number for the same bank.) A. Bank Name B. Bank Branch C. Bank Account Name D. Bank Account number E. Currency F. Do you pay with multiple currencies from this bank account? G. Maximum payment batch amount H. Allow zero payments (checks for $0.00)? I Maximum/Minimum payment amount allowed. J. Bank contact name, address and telephone. K. General Ledger accounting flexfield for this bank account. (All segments are required and it must be an asset account.) L. Realized Gain/Loss Accounting Flexfield to use if foreign currency is used. M. Payment document. List the name and range of sequence numbers, the type of payment, the starting number to be used in Oracle, the payment format and the number of alignment checks needed for each payment batch. (You may have more than one check stock for a bank account. For example, one may be used for handwritten checks that are only recorded in the system and the other for computer generated payments, or you may have one stock for both types of payments. The type of payment for each document name may be: computer generated, recorded

or combined. The payment format should be one of the samples provided in the previous numbered item.) VII. Employees and Expense Reports A. What volume of employee expense reports do you process monthly? (If the volume is relatively small, it is recommended that you enter expense reports directly as payable invoices. Oracle does provide a form for easy expense report data entry. However Xpense Xpress requires more processing steps.) B. Do you have a standard list of expense report items? You may create a distribution set for this list or an Expense Report Type if you are using Xpense Xpress. List the standard lines for an expense report, including the accounts. C. Employees. Make sure your list of vendors includes all the employees which may submit expense reports. These must be setup as employees and vendors in Oracle. Include a unique employee number for each employee and their home address and business location. You may assign a default expense account for the employee if desired. This account will be the default for expenses entered for this employee, but you may override it. VIII. 1099 Processing. A. Entities. Do you require more than one 1099 reporting entity? List the entities and the balancing segments they include. B. Income Tax Regions. Do you use the 1099 Combined Filing Program? If you do, list all the regions that you use.

Workshop 3 Accounts Payable AP Setup Questions This section details setup parameters that control how payments are made, how vendors are numbered, default distribution accounts and default vendor information. Financials Options I. Vendors A. Vendor numbering - automatic or manual? If manual: alphanumeric or numeric only?

 If automatic: next vendor number B. Pay Alone - Create a separate check for each invoice or allow a check to pay more than one invoice for that vendor? II. Purchasing Defaults These are optional items which will be default values during invoice entry: A. Ship-To/Bill-To locations B. Ship Via (shipping method) C. FOB type D. Freight Terms III. Personnel Information Defaults A. Employee Numbering Method - manual or automatic B. If automatic: next employee number C. Default Expense Check Address: Home or Office location IV. Payment - The answers you provide here will become the defaults for data entry of invoices and calculation of payment schedules and discounts. The optional items are in italics. A. Terms - do you have a default payment term? You can override during data entry. B. Terms Date Basis - this determines the payment schedule and due date. Choose from one of these values entered during invoice entry: 1. Current system date 2. Date entered for goods received - best if using automatic interest calculation 3. Invoice date 4. Invoice received date C. Pay Date Basis - What day should be the default for payment, when it is due or the last day for discount to apply? This is used for selecting invoices for payment. D. Always Take Discount - A "Yes" answer will always take the discount even when payment is after the discount date.

E. Receipt Acceptance Days - If you allow recalculation of payment schedule, Oracle will calculate you invoice due date with this buffer included. F. Payment Method - the default payment method to apply to each vendor, normally Check. Other options are: Clearing, EFT, Manual, Wire. G. Invoice Currency - if you allow multiple currencies, you may choose a currency other than the functional currency as the default. V. Accounting - All the fields in this section are required but you can override the values during data entry. A. Liability Accounting Flexfield - what is the default AP account? B. Prepayment Accounting Flexfield - what is the default prepayment account? C. Discount Taken Accounting Flexfield - where do you record discounts taken? D. Rate Variance Gain/Loss Accounting Flexfield - used for variances between purchase order and invoice exchange rate. VI. Encumbrance - Controls how much can be spent. Special issues. VII. VAT Registration - Applies mainly to European Users. System Options and Defaults I. Invoice A. Confirm Date as Invoice Number - Oracle will default the Invoice Number to be the invoice date. This option will remind you that this is what the invoice number is set to if you do not enter a number. Yes or No? B. Use Batch Control - Do you enter invoices in batches? This option groups invoices and allows you to enter defaults for the batch of invoices. C. Allow Paid Invoice Adjustments - Will you allow changes to invoice distribution lines after payment but before posting? D. pprovals - Do you want to approve invoices in batches only or both in batches and online one at a time? Batch or Both E. GL Date - What date should be used for the accounting date: Invoice Date

 System Date Receipt - used only when matching purchase orders F. Automatic Offsets Do you want to record a liability distribution line for every expense distribution line? If yes, do you want the liability flexfield to match the default for the vendor except for the account segment? Or for multi-company sets of books, do you want the balancing segment to change to be the same as the balancing segment used for the expense distribution? II. Invoice Tax A. Require Tax Entry - Do you have use tax and sales tax entries? If use tax is something tracked then you may not require tax entry. If only sales tax is tracked, you may require that every invoice have a tax code and amount. (Zero is allowed.) Yes or No? B. Automatic Tax Calculation - If you enter a sales tax code and not the amount, do you want Oracle to calculate it automatically? Yes or No? C. Exclude Tax for Discount - Do you want Oracle to calculate the discount amount with the tax included or excluded from the invoice amount? III. Vendor A. PayGroup - Is there a default pay group you want to use when entering new vendors? B. Automatic Interest Calculation - Do you want to create interest invoices and payments for overdue invoices? The answer will become the default when you setup a vendor. IV. Payment A. Bank Account - When a payment batch is created, which is the bank that should be the default? You may override the default or not have a default. B. Maximum Outlay - Do you have a maximum amount for each payment batch to pay? You will be warned if you exceed this amount. C. Payment Cycle - Oracle can automatically determine the pay through date for each batch based on the number of days between payment runs that you enter here. D. Discount Distribution - If you take advantage of discounts how should the savings be distributed? Prorate Expense

 Prorate Tax Use System Account E. Allow Online Print - will you print QuickChecks online? A special queue and printer may be set up for this. Yes or No. F. Allow Future Payments - Do you print checks with future dates to instruct the bank to release funds on that day? Yes or No. G. Allow Pre-Date - Will you allow checks to be printed with a date earlier than the current date? H. Allow Payment Address Change - Will you allow a payment address to be changed from vendor address on manual payments or QuickChecks? I. Replace QuickChecks - Easily recreate with a new number a spoiled manual check or require that the check be voided and create a new check. Yes or No. J. Allow Document Category Override - allow recategorizing a document? K. EFT User Number - If electronic payment formats will be used this number is required. V. Payment Interest A. Automatic Interest Calculation - Do you want to create interest invoices and payments for overdue invoices? Yes or No. If Automatic Interest Calculation is enabled then the following are required. Otherwise these may be skipped. B. Minimum Interest Amount - if interest calculation is less than this amount an interest invoice will not be created by Oracle. C. Interest Expense Accounting Flexfield - the account for interest expense. D. Interest Liability Accounting Flexfield - the account for the interest liability. E. Payment Schedule Recalculation - No is assumed since purchase order terms will not be applicable. VI. XpenseXpress - This section is only needed if expense reports are entered differently from invoices. A. Create Employee as Vendor - Yes or No. If vendor numbering is manual the answer is No. Otherwise answering Yes will cause a vendor record to be created automatically for any employee with an expense report that is imported into AP. If XpenseXpress is not used employees will only be setup as vendors manually.

B. Date Format for expense reports: DD-MON-YY or MMDDYY C. Payment Terms - Immediate is recommended for employee vendors. D. Apply Advances - Yes or No. Allow advances to be applied to expense reports before they are imported as payable invoices. E. Payment Priority - What priority will be assigned to expense reports? F. Settlement Days - How many days must pass before you will allow an advance to be applied to an expense report? G. Hold Unmatched Invoices - No since PO system is not in use. VII. Currency - This section is optional if you do not allow multiple currencies. A. Use Multiple Currencies - Yes allows entry and payment of invoices in currencies other than the functional currency. B. Require Exchange Rate Entry - If you say No then you must run the AutoRate program to calculate. Recommend: Yes C. Exchange Rate Type - Choose Spot maintained daily, Corporate maintained daily or User user enters the rate. D. Realized Gain/Loss Accounting Flexfield - used for exchange rate gains and losses when pay a foreign currency invoice. VIII. Posting - This section will give default values for the way posting AP is handled. Remember that posting AP only marks transactions as transferred to GL. It does not post the transactions in GL. A. Primary Acccounting Method - Accrual or Cash B. Secondary Accounting Method - only used for combined basis accounting. C. Summary or Detail Posting - You may override these answers later. Choose whether Oracle should maintain detail audit transactions or not for each of these accounts: 1. Liability 2. Discount Taken 3. Gain or Loss 4. Future Payment

D. Decide on the default method for creating journal entries in GL: Summary (Yes) Detail (No) How much detail do you want in the GL? Oracle will summarize all transactions with the same accounting flexfield every time you post, if you choose Summary - Yes. IX. Organization - Only required if use Combined Filing for 1099 reporting X. Combined Filing Program - Yes or No A. Vendor Sites Tax Region for Invoice Tax Region - use the vendor sites tax region as default, yes or no? B. Income Tax Region Name (if not using vendor site). XI. Matching - Used only when Purchase Order is used. A. Allow Distribution Level Matching B. Allow Matching Flexfield Override C. Allow Final Matching

Workshop 4 Accounts Payable AP Setup Questions I. Open Accounting Period - What will be the first accounting period to be opened? II. Define Report Sets - Define groups of reports you would like to run. III. Report Formats A. Expense Detail - Information and sort order for Expense Reporting Enter the Accounting Flexfield segment names you want to sort by in this report and where you want page breaks and total lines. Sequence Segment Page Break Total Line

B. Aging Periods for Invoice Aging Report Days From 0 30 60 90 Days To 29 59 89 Type Current Past Due Past Due Past Due Heading Current > 30 > 60 > 90

IV. AutoClear Format for Payment Reconciliation - This section is only required if you want to do automatic reconciliation using a file from you bank. A. Bank Codes - Detail file format from the bank is required to complete this section Record Code Type Header,Summary, Detail Transaction Code Action Debit, Credit, Stop Description

Bank File Specifications - Specify the file location for the following: Data Column Record Start End Data Type Position Position Type Amount Bank Account Num Cleared Date Bank Record Code Serial Number Transaction Code Mask Field Error Check Group Break

C. Error Checking Groups - Define the codes you want to do error checking for to match what you bank checks.

Name

Description

Function Sum or Count

Data Column Code Type Code From above record or trx

V. Define Period Types and Periods for Key Control Indicators and Recurring Payments if they are different from your accounting periods.. This is only needed if: You monitor performance of data entry personnel? You have recurring payments on a schedule different from your accounting periods? VI. Implement Sequential Numbering - List the document categories that you want sequentially numbered automatically. List the sequence numbers to use with each category. For example: Invoices and Credit Memos could be categorized together with one set of sequential numbers. VII. Define Descriptive Flexfields - Decide on what extra information is needed when entering invoices and what the list of valid values for this field is and when or where the value should be entered.