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Vision Demo - How To Create an Advance Invoice & Payment for a Complex Services Purchase Order(Actuals) (Doc ID 2457443.1)

Last updated on JULY 28, 2019

Applies to:

Oracle Purchasing - Version 12.0.0 to 12.2.8 [Release 12 to 12.2]
Oracle Payables - Version 12.1.3 and later
Information in this document applies to any platform.

Goal

This is one of a series of Vision Demo Notes on Complex PO Processing.

---> Step 1 - <Note 2456891.1> Vision Demo - How To Create A Complex Services Purchase Order(Actuals)

---> Step 2 - YOU ARE HERE       Vision Demo - How To Create an Advance Invoice & Payment for a Complex Services Purchase Order(Actuals)

---> Step 3 - <Note 2461636.1> Vision Demo - Creating Complex PO Work Confirmation Via iSupplier & Processing the Lump Sum Payment Invoice

---> Step 4 - <Note 2470730.1> Vision Demo - Creating Complex PO Work Confirmation Via the Buyer & Processing the Rate Payment Invoice

---> Step 5 - <Note 2550974.1> Vision Demo - Creating Complex PO Work Confirmation Via iSupplier & Processing the Milestone Payment Invoice

---> Step 6 - <Note 2551353.1> Vision Demo - Creating Complex PO Retainage Release Invoice Post Completion


 

The focus of this note is to list the steps required to create an advance Invoice for a Complex Purchase Order

 

In our fictional example, the task at hand is to procure and pay for the preparation and painting of the Vision HQ Building located in V1-New York City for $25,000. The services are being procured with an "Advance" Payment to begin the  work, a "Lump Sum" payment for the preparation of the building to be painted, a "Rate" payment for the workdays and finally a "Milestone" payment at completion of the project. In this note the Advance Invoice is created for the $2500 Advance Payment

Creating the Complex PO, Financing, Supplier and Buyer Work Confirmations will be illustrated in other notes

The example shown in this note is based on data in the Vision Demo database including User, Responsibility, Item, Inventory Organization, Supplier, Site, etc.

Refer to Appendix at the end of this document for more Complex PO Terms and Definitions

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

There are 2 Seeded Complex PO Styles - "Complex Services(Actuals)" and "Complex Services(Finance)".

      1. Actuals (non-finance): This is where the Pay Items are NOT financed and invoices for Pay Items are for actual work done. So the invoice type is ‘Standard’.
      2. Finance: This is where the Pay items represent a financing arrangement and invoices for these Pay Items are for financing the supplier.  So the invoice type is ‘Prepayment’.

For the purpose of this note we are focusing on "Actuals".

 NOTE: For Complex Services “Actuals” (progress payments are not financed), the Pay Items total amount for a specific PO line MUST EQUAL the PO line amount. So in the example above all the Pay Items equal the PO Line 1 total of $25,000.
As we proceed through the demo flow the table below shows the invoice amount that is created for the supplier based on the above PO terms and Pay Items:

 

These are the sequence of events/invoices based on this example and the pay items and rates used

Sequence Calculation of Invoice Totals Net Invoice Amount
PO Advance Based on the total amount of the PO-in this case 10%  $2,500
---------------------------------------- -------------------------------------------------------------------------------------------------------------------------  
Pay Item: Lump Sum Work Completed

Lump sum $5000 less $1000 (recoupment of advance up to 20% of invoice amount) less $500 (Retainage of 10%)    

NOTE: $1500 LEFT IN ADVANCE AMOUNT

 $3,500
----------------------------------------

-------------------------------------------------------------------------------------------------------------------------

 
Pay Item: Rate Work completed

$10,000 Rate amount less $1500(recoupment of 20% advance or whatever is left in total Advance Amount) less $1000 (retainage of 10%)

NOTE: NO ADVANCE AMOUNT LEFT TO RECOUP

 $7,500
----------------------------------------

-------------------------------------------------------------------------------------------------------------------------

 
Pay Item: Milestone Work completed $10,000 Milestone Amount (No advance left to recoup) less $1000 (10% retainage)  $9,000
---------------------------------------- -------------------------------------------------------------------------------------------------------------------------  
Retainage Release Invoice Release of all retainages for each Pay Item  $2,500

 

 

 

 

 

 

 

 

 

 

 

 

Solution

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In this Document
Goal
Solution
 Appendix of Complex PO Terms and Pay Items
References

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