Peoplesoft Accounts Payable

Introduction to Accounts Payable

Agenda

PS AP Introduction & Integration, Hierarchy 15 Min

AP Business Unit Setup 15 Min
Voucher Styles 15 Min
Managing Voucher 15 Min
Matching 15 Min
Payment 15 Min
Posting 15 Min
Q&A and Break 15 Min
What is Accounts Payable

Supplies – Raw Material, Assets

Services - Consultants
Vendors
Organization
Payments
PeopleSoft Accounts Payable- Integration
To understand the integration better let us take an example of purchase of raw materials
in a manufacturing organization, in an integrated environment:

Requisition raised

Requisition Approved

Purchasing Module
PO raised

PO sent to Vendor

Goods Received along

with invoice from the vendor Inventory Module

Voucher Raised for goods recd

Payment made Payables Module

Posting process

Posted to Ledger. General Ledger Module

PeopleSoft Accounts Payable
Designed to support multiple voucher and payment processes, by incorporating functions into a single database.

Payables Features

On-Line Invoice
Bank Reconciliation Recurring Contracts
Entry

Multicurrency
Batch Entry Matching Processing

Voucher Management VAT Analysis Vendor Management

Use & Sales tax Mgmt Payment Creation Global Withholding

Voucher Build Document Sequencing

 Payables
PeopleSoft Integration
Payables Integration Touch points

6
Preparing to Implement Payables
Determine your Payables Requirements
•Understand business structures, practices, and procedures
•Decide on Business Unit Structure
•Consider GL Distribution
•Understand PS Payables Control structure

Customize PS Payables to meet requirements

•Setup Payables Tables
•Setup Peoplesoft Security
•Migrate Existing Data

Operate PS payables
• Process Voucher and Payments
• Generate Reports and Enquiries
Payables Control Hierarchy

Base
Defaults

Final
Defaults
Setting up Payables : Business Unit Setup
Completing business unit setup. Completing Payables Definition

• Link payables BU to GL BU. Select accounting template and Posting option

• Specify Sales and Use Tax and VAT option

• Specify Voucher Build Criteria

• Specify matching options

• Specify payment Options – Calendar, Scheduled Pay date Validation

• Specify Auto Numbering options

Setting up Payables : Business unit Setup
Creating Payables business unit : Defining the Payable BU.
Navigation : Set up financials>Business Unit related>Payables>Payables
definition
Setting up Payables : Business Unit Setup
Setting up Payables : Business Unit Setup
Setting up Payables : Business Unit Setup
Setting up Payables : Business Unit Setup
Setting up Payables : Business Unit Setup
Setting up Payables : Business Unit Setup
 Setting up Payables : Defining Processing specific to AP/PO applications
Voucher Origin

• Identifies specific entry point for online or batch entry, such as a department, a division, a company,
or a specific user.
• Stores validation rules and default information, which provide additional voucher entry controls.
• In PeopleSoft Payables, each user ID must be associated with a valid origin to process voucher.
• Voucher origins established using Voucher Origin component, which consists of five pages:
• Accounting and Pay Options
• Vouchering Options 1
• Vouchering Options 2
• Sales/Use Tax Options
• VAT Options.
• Voucher origin inherits its defaults from business unit.

Cont..
Setting up Payables : Defining Processing specific to AP/PO applications
Setting up Payables : Defining Processing specific to AP/PO applications
Setting up Payables : Setting up tables common to all PS applications
Establish User Preferences – Procurement Processing Defaults and Authority
Navigation : Menu> Set Up Financials/Supply Chain > Common Definition>User
Preferences>Define User Preference >Procurement
 Setting up Payables : Setting up tables common to all PS applications
Establish User Preference -Payables Online Vouchering – Processing Defaults
and Authority
Navigation : Menu> Set Up Financials/Supply Chain > Common Definition>User
Preferences>Define User Preference
 Setting up Payables : Setting up tables common to all PS applications
Establish User Preference –Authorize users to perform vendor maintenance functions.
Navigation : Menu> Set Up Financials/Supply Chain > Common Definition>User
Preferences>Define User Preference

Establish User Preference –Contract Processing Authority and Contract Process

Setting up Payables : Defining Processing specific to AP/PO applications
Voucher Control Group
• Vouchers grouped together for specific control or verification purposes
• Next Level of control hierarchy – Unique set of Chartfield editing rules
• Enhance control over Payment and posting
• Divide large no of vouchers over Data entry clerks while retaining control over processing
Setting up Payables : Defining Processing specific to AP/PO applications
 Vouchers-Processing Flow

Batch processes Online Entry Quick Invoice Entry

Enter Voucher Create Control group

Delete Voucher Update Voucher

Edit Voucher
• Batch Edit
• Voucher Build
Match Voucher Unpost

Approve Voucher Post Voucher

Pay Voucher
Close
Generate Journals
Required
Post Payments Journal Generator Optional
Vouchers – Status & Status Types
Status Type Process Initial Status Post-Processing
Statuses
Entry Status Voucher Entry Open Deleted, Recycle
Postable
Match Status Matching To Be Matched Exception
Manually Overridden
Manually Set to Credit Note
Matched, Match - Dispute
No Match
Approval Status Voucher Approval Voucher Approval Pending Approval
Approved, Denied
Budget Status Budget Processor Not Checked Valid, Error
(Budget checking)
Document Tolerance Document Tolerance Not Checked Valid, Error
Status Checking
Post Status Voucher Posting Not Posted Posted
Payment Status Pay Cycle, Payment Selection Not Selected Selected for Payment
subprocess
Payment Status Pay Cycle Selected for Payment Paid
Payment Creation
subprocess
Payment Post Status Payment Posting Not posted Posted
 Vouchers - Styles
Voucher Type Function
Regular Voucher For Entering Standard Voucher (Default setting)
Adjustments For entering Adjustments Voucher for debit or credit
Voucher memos or relating to other vouchers.
Journal Voucher Vouchers for correcting accounting entries.
Prepaid Voucher For entering prepayments(down payments, progress
payments or deposits.)
Register Voucher For entering VAT vouchers
Template Voucher For creating & entering template vouchers
Third Party For entering vouchers for charges other then
Voucher merchandise charges, e.g. freight only vouchers.
Single Payment Enter a voucher for a one-time vendor without having to
Voucher define the vendor in the system.
Reversal voucher Create a new voucher with reversal accounting entries
and back out encumbrances.
Online Voucher Entry - Invoice Information

Navigation : Menu> Accounts Payable>Voucher>Add/Update>Regular

Entry- Invoice Info page

Enter invoice information, including invoice header

information, non-merchandise charges, and voucher line
and distribution information

Contd…
Online Voucher Entry - Invoice Information

Contd
…
Online Voucher Entry - Invoice Information
Online Voucher Entry - Invoice Information
Online Voucher Entry – Payments Page

Navigation : Menu> Accounts Payable>Voucher>Add/Update>Regular

Entry- Payments tab

Change payment schedule, schedule multiple payments, schedule direct

payment to alternate vendor / vendor location, record manual payment, and
create express check.
Online Voucher Entry – Payments Page

Contd…
Online Voucher Entry – Payments Page

Contd…
Online Voucher Entry – Payments Page
Online Voucher Entry – Voucher Attributes
Online Voucher Entry – Voucher Attributes
Types of Vouchers : Template Vouchers
• A model for other vouchers.
• Helps save effort for multiple vouchers for same vendor
• Is never paid or posted.

Creating Template Vouchers

1. Add voucher using Voucher Style - Template Voucher.
2. Use Template information page to enter Template ID and Description. The link is on
Invoice Information page
3. Return to Invoice Information page and enter remaining information for the template
voucher you are creating.
4. Save the voucher
Types of Vouchers : Template Vouchers
Using Template Vouchers
1. Add a voucher using any of Voucher Styles
2. On Invoice Information page enter Vendor ID and select Template Info link to
access Template Information page
Select Copy from Template Voucher check box and select Template ID.
3. Select the “copy” button to copy appropriate invoice header, line, and
distribution information from source template voucher onto the new voucher
4. Complete the voucher by adding the Invoice Date and Invoice number and save
Types of Vouchers : Third Party Vouchers
• Invoice that contain charges other than Merchandise charges
• These invoices contain no charges for merchandise.
• Example - Freight charges, Miscellaneous charges such as insurance, VAT-only
invoices.
• Link charges on these invoices to merchandise invoice and prorate them across voucher
lines of merchandise invoice.
Types of Vouchers : Prepaid Vouchers
Processing Prepayments
• Allows a payment to be made to a vendor without an invoice.
• Creates accounting entries for the prepayment.
• Applies VAT and withholdings to the prepayment.
• Facilitates the application of the prepayment to the final voucher

Contd…
Types of Vouchers : Adjustment Vouchers
Adjustment Vouchers
• Used to adjust existing vouchers or to relate two vouchers to each other.
• Example
• Food ordered for a party. Did not receive all Items => Make an adjustment for the
missing items using an adjustment voucher.
• Company being billed in two parts for a major purchase. The two invoices need to be
tied together. => Enter second invoice as an adjustment.
Types of Vouchers : Journal Vouchers

Journal Vouchers
• Used to adjust accounting entries.
• Example Voucher entered using expense account 123. Voucher posted and paid, and
payment posted
• But expense should have used account 456.
• Option 1: Make manual General Ledger entry - General Ledger and Payables being
out of sync
• Option 2: Unpost payment and voucher, correct voucher, repost voucher and
payment
• Option 3: Simply enter a journal voucher - Reverse account 123 amount and add
amount to 456
•General Ledger and Payables in sync.
•Post the journal voucher without having to post a payment.
Voucher Managing

•Approve vouchers.
•Unpost individual vouchers.
•Close individual vouchers.
•Delete individual vouchers.
•Search for and correct individual vouchers.
•Modify, unpost, delete, and close multiple vouchers.
Voucher Managing
Voucher Managing
Voucher Managing
Posting of Voucher : The Voucher Posting process creates accounting entries from vouchers.
The system uses the accounting entry template and inheritance rules to identify the offset
accounts needed to create accounting entries.

Closing of Voucher : Close vouchers when you want the remaining liability to be “written off”
the vendor balance and the voucher to be considered complete. With closing the expense will be
credited and the liability debited. To close a voucher, the voucher must be - Posted, not selected
for payment & not fully paid.

Deletion of Voucher : Deleting a voucher removes the voucher from the system irreversibly.
Deletion of voucher however does not remove it from Voucher tables. It is in the tables marked as
‘Deleted’ & is available only for audit trail purposes. PeopleSoft Payables enables you to select
only those vouchers that are eligible for deletion. The vouchers cannot have been posted or
selected for payment, nor can any portion of the vouchers ever have been paid. Once you delete a
voucher, you cannot retrieve it or undo the deletion. The data rows that are associated with the
voucher remain in the tables so that you cannot reuse the voucher number.

Unposting of Voucher : Unposting a voucher reverses the accounting entries that have been
posted to the voucher accounting entry tables so that the voucher is available for modification.
Unposting happens immediately when you save the UnPost Voucher page..
Voucher Posting

Positng options available are

If ‘Post all Units’ option is selected the process will post all vouchers for all BUs. Whereas if Post Vouchers/Post BU is
selected the post voucher list options get activated as shown in below screen shot.
Voucher Unposting

Select from the list of Vouchers, the voucher which has to be reversed i.e Unposted. We can specify the unpost
accounting date as BU default date or current date or any other date.
Click on unpost button to run the unposting process.

Unposting is done to correct the voucher which has already been posted. For eg : We have a voucher which has
been posted to account 600000, & has not been paid yet. Later user realizes that the correct account for this
voucher should have been 600001 & not 600000. Now the user will Unpost the voucher (which will create
reversals for account 600000 ), correct the distribution account to 600001 on the voucher & repost the voucher.
Voucher Unposting
The unposted voucher can be updated using the Voucher component and reposted.

If the voucher is unpaid, then all voucher fields are available for updating. However, if the voucher has been paid
or partially paid, only a limited set of fields is available for modification: accounting date, tax codes, and all
invoice line and distribution line fields. Payment Fields are completely unavailable.

If the voucher is not paid at all , on unposting all the fields like amount, tax, date, payment fields ,invoice &
distribution lines are available for updation .

For a Register Voucher, only voucher line and distribution lines fields can be updated after unposting .
 Matching
Match Rules
Match rules control the way matching program operates on voucher, purchase order,
receiver, and inspection information.
 Matching
Match Rules
Peoplesoft enables 2way,3way & 4way matching.
2Way- PO to Voucher / Receipt to Voucher / Po to Receipt
3Way- PO to Receipt to Voucher
4Way- PO to Receipt to Inspection documents (like shipping receipts) to Voucher.

To enable the matching in any of the above ways PeopleSoft delivers the following match
rule types:
1) Data Entry : Data accuracy match rules verify data entry accuracy for example by
making comparisons on vendor IDs and item IDs
2) Merchandise – Amount / Quantity / Unit price : Merchandise match rules verify that
the price /quantity/unit price of the goods / services received by the organization matches
the price /quantity/unit price of the goods / services on the purchase order.
3) Summary/Global Match Only : These applies tolerances to successfully match
exceptions. These follow the system rules.
4) System : Match rules delivered with the system. Few examples are Invalid PO status,
Invalid ccurrency rate for receipts.
 Matching
Match Rule Control
Match rule controls are sets of match rules applied against vouchers, purchase orders,
and receivers
 Matching Matching Process
Invoice
Voucher Voucher paid
Match
Voucher
Entered
Exception
Matched
PO
No
Yes
Yes
Matching Not paid MatchDisp
Receiver Success? ute?
Process
No

Inspection Voucher Flagged Yes

for Payment
Override?

No

Match Detail Correct

Exception Errors

Restart process
Matching
Running the matching process.
Navigation : Menu>Accounts Payable>Batch processes>Vouchers>Matching
Pay Cycle Manager
Integrates Payables data and is Focal Point of Payables Processing

Bank
Vendor Information Pay Cycle
Information Exceptions

Pay Cycle Pay Cycle Payment

Criteria Manager Instruments

Scheduled Payment
Payment Report
Business Unit
Information
 Pay Cycle Process
Payment Selection
Produce Positive
• Discount Alert Payment File
• Negative Balances
• Conversion Alert
Selection Exception
• Withholding Alert
Format Positive
Payments
Draft Staging

• Prepayments Complete
• Withholding Payment Creation
• Netting

Payment
confirmation
Print Trial PayCycle Approval
Register

Print Check
EFT Format
ACH Format
Print Advice
Pay Cycle Process

Click to initiate an output process, such as creating an EFT

file, or printing checks or advices.
Pay Cycle Statuses

Pay Cycle Status Meaning

Approved Pay Cycle has been approved.
Completed All processing has finished.
Confirmed Reference numbers have been confirmed.
Exception Selection exceptions have been found.
Formatted Positive Payment data is formatted.
New Pay Cycle processing has not yet begun.
Selected/Staged Payments have been selected and Draft Payments have been staged.
Printed Data has been printed or written to a file.
Created Payment Creation is complete.
Rejected Pay Cycle has been rejected.
Reset Pay Cycle has been reset.
Restarted Pay Cycle has been restarted.
Running A process is currently running.
Nothing to Process The Payment Selection or Creation process has no transactions to process.
Selected Payment Selection is complete.
Additional Payment Processing Options
The payment process routine depends on the business needs. There may be times
when you need additional payment processing options other then paycyle for eg. if
you need to print a check immediately,& you cannot wait for the next pay cycle
run.The other options are :

1) Express Payment : Express payments enable you to create payments

(i.e print cheques) quickly outside of your regular payment cycles.
Vouchers must be entered into the system and be approved for payment
before you can create an express payment.

2) Manual Payment : Here an online voucher and its payment is created

simultaneously, but the system does not generate a check or other
payment. To record manual payments ,you select ‘Record’ as the
payment Action on the Payments page (cheques are created outside the
system & cheque no. is entered as reference on Payments Page).
Additional Payment Processing Options
Express Payment
Additional Payment Processing Options
The ‘create payment’ button transfers you to the Express Payment Manager page to
complete your cheque processing.
Additional Payment Processing Options
Manual Payment :
Cancellation of Payment
Peoplesoft also provides a feature of Payments cancellation incase
1) you wish to stop payment or
2) the payment is void or
3) payment is stale-dated.
Reviewing Payment Info
This completes the Payment processing. Once the paycycle is run successfully &
payments have been posted they can be reviewed on the below navigation :
Menu>Accounts Payable> Review Accounts Payable info>Payments>Payment
Posting - Voucher ;Payment
The Voucher Posting process creates accounting entries from vouchers. The system uses
the accounting entry template and inheritance rules that you set up on the Accounting
Entry Template and ChartField Inheritance pages to identify the offset accounts needed to
create accounting entries.

The entries include the expense distributions entered into the system, as well as additional
entries for the payables offset, value-added tax (VAT) expense, nonprorated,
nonmerchandise expenses, and closure expenses. These accounting entries are then
available for generating general ledger journals, using the Journal Generator Application
Engine process (FS_JGEN). Vouchers must be entered, approved, and posted before you
can send voucher information to the general ledger.
  
The Payment Posting process creates accounting entries from payment-related
transactions, such as system-created payments, manual payments, drafts, electronic file
transfer (EFT) payments, ACH payments, and canceled payments. The Payment Posting
process also creates realized gain or loss offsets when a transaction is entered in a
different currency than the base currency and the rates have fluctuated between the
invoice and payment dates.

These accounting entries are then available to the Journal Generator process to pass to
your general ledger.
Posting - Voucher ;Payment

 
There is a difference between running the Voucher Posting and Payment Posting
processes and running the Journal Generator process. Before you can transfer a voucher
or payment to the general ledger, it must be associated with accounts. The posting
processes create all accounting lines. Voucher accounting lines are created based on the
distribution lines from voucher entry. However, proration of nonmerchandise charges
result in accounting lines that are different from what was actually entered in the
distribution lines.
Payment Posting
Payment Posting is similar to Voucher Posting. This process creates accounting entries for all the
payments.

Payment post options

Post Payment List will be activated for all the post payment options other then ‘Post all
banks’ option.
Q &A
Thanks