Procure to Pay Flashcards
AP Manager
AP Clerk/Accounts Payable Clerk
AP RESP
Handles the day-to-day processing of invoices and payments. This includes verifying invoices for accuracy, coding invoices to the correct general ledger accounts, and processing payments to vendors. AP Clerks may also be responsible for reconciling vendor statements and resolving invoice discrepancies
Vendor Master Data Specialist
AP RESP
Manages vendor master data within the Oracle AP system. This role involves setting up new vendor accounts, updating existing vendor information, and ensuring that all vendor data is accurate and up-to-date. The Vendor Master Data Specialist plays a key role in maintaining the integrity of vendor data, which is critical for efficient AP operations.
AP Analyst/Accounts Payable Analyst
AP RESP
Performs analysis and reporting related to accounts payable. The AP Analyst is responsible for analyzing AP processes to identify opportunities for improvement, conducting financial analysis to understand AP metrics, and generating reports for management. This role may also involve auditing AP transactions for compliance with internal policies and external regulations.
Payment Processor
AP RESP
Focuses on processing payments to vendors. This includes generating payment batches, executing electronic fund transfers, issuing checks, and managing payment schedules. The Payment Processor ensures that payments are made accurately and on time, in accordance with vendor terms and company policies.
AP Systems Administrator
AP RESP
Manages and maintains the Oracle AP system. This technical role involves configuring the AP module to meet organizational needs, performing system upgrades, troubleshooting system issues, and providing user support. The AP Systems Administrator ensures that the Oracle AP system is functioning optimally to support AP operations.
AP Process Flow
Purchase Order Creation
Receipt of Goods or Services
Invoice Receipt
Invoice Entry and Processing
Invoice Verification and Matching
Invoice Approval
Payment Creation
Payment Processing
Reconciliation and Record Keeping
Vendor Communication and Queries
Receipt of Goods or Services
AP PROCESS
Process: Upon delivery of goods or completion of services, a receiving report or service acceptance document is generated to acknowledge that the order has been fulfilled as per the PO.
Purpose: This step is crucial for verifying that what was ordered has been received before any payment is made.
Invoice Receipt
AP PROCESS
Process: The supplier sends an invoice to the company, requesting payment for the goods or services provided. The invoice should match the details of the PO and the goods receipt/service acceptance.
Purpose: The invoice initiates the payment process and serves as the supplier’s formal request for payment.
Invoice Verification and Matching
AP PROCESS
Process: The AP department verifies the invoice details against the PO and the receiving report/service acceptance document. This is often referred to as a three-way match (PO, delivery receipt, and invoice).
Purpose: Ensures that the invoiced amounts are correct and authorized for payment.
Invoice Approval
AP PROCESS
Process: Once verified, the invoice requires approval. Depending on the organization’s internal controls, this may involve one or several levels of approval.
Purpose: Confirms that the invoice is accurate and the expenses are legitimate and budgeted.
Invoice Entry and Processing
AP PROCESS
Process: Approved invoices are entered into the accounting system, typically within an AP module or ERP system, which may involve coding the invoice to the appropriate general ledger accounts.
Purpose: Prepares the invoice for payment and ensures accurate financial reporting.
Payment Processing
AP PROCESS
Process: The company processes payment for the approved invoice, which can be through various methods such as checks, bank transfers, or electronic payments.
Purpose: Settles the company’s obligations to the supplier, often taking into account any payment terms for early payment discounts or avoiding late fees.
Reconciliation and Record Keeping
AP PROCESS
Process: After payment, the AP department reconciles the payment transaction against the invoice and updates the company’s financial records accordingly.
Purpose: Ensures that payments are accurately reflected in the company’s financial statements and assists in maintaining a clear audit trail.
Standard Invoice
INVOICE TYPE
Represents a typical invoice from a supplier for goods or services provided. It is used to process payments for a specific purchase order.
Credit Memo
INVOICE TYPE
Issued by a supplier to reduce the amount owed by the buyer. This can be due to returned goods, overbilling, or other reasons for granting a credit to the buyer’s account.
Debit Memo
INVOICE TYPE
The opposite of a credit memo, a debit memo increases the amount owed to a supplier. It could be issued by the buyer to adjust the amount payable to the supplier, often due to receiving fewer goods than invoiced or being undercharged.
Prepayment Invoice
INVOICE TYPE
Represents an advance payment made to a supplier. Prepayments are recorded and then applied to future standard invoices from the same supplier.
Expense Report
INVOICE TYPE
Used to reimburse employees for expenses they have incurred on behalf of the company. Expense reports are treated like invoices from the employee to the company.
Mixed Invoice
INVOICE TYPE
Contains both invoice lines that can be matched to a purchase order and lines that can be directly accounted for without matching. This allows for partial associations with purchase orders.
Withholding Tax Invoice
INVOICE TYPE
Automatically generated to account for withholding tax obligations. These invoices represent the tax amount withheld from payments to suppliers that need to be remitted to tax authorities.
Retainage Release Invoice
INVOICE TYPE
Used in construction and project-based industries, where a portion of the payment is withheld until project milestones are completed. A retainage release invoice is issued to request the release of these withheld amounts.
Recurring Invoice
INVOICE TYPE
For regular expenses that occur on a fixed schedule, such as rent or lease payments. Recurring invoices automate the process of creating invoices for these expenses.
Interest Invoice
INVOICE TYPE
Generated to charge interest on overdue invoices, either to suppliers (for late payment refunds) or from suppliers (for late payments made by the company).
Invoice Workbench
AP WORKBENCH
The Invoice Workbench allows for the creation, management, and adjustment of invoices. Users can enter standard, credit memo, and debit memo invoices, as well as match invoices to purchase orders or receipts. It also provides tools for handling invoice approvals, validations, and accounting entries.
Payments Workbench
AP WORKBENCH
The Payments Workbench is used for processing payments to suppliers. It supports the creation of payment batches, manual and quick payments, voiding payments, and stopping payments. The workbench allows users to manage payment methods, schedule payments based on due dates, and apply discounts or finance charges as applicable.
