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Vision Demo - Creating Complex PO Work Confirmation Via the Buyer & Processing the Rate Payment Invoice (Doc ID 2470730.1)

Last updated on DECEMBER 04, 2019

Applies to:

Oracle Payables - Version 12.0.0 and later
Oracle Purchasing - Version 12.0.0 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 - <Note 2457443.1> 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 - YOU ARE HERE - 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 a work confirmation for one of the pay item as the buyer.  This is how the supplier will get paid for the work item performed.

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.

 

At this point the main body of work has been completed and the supplier has confirmed the hours have been worked and now they would like to be paid while final inspections and cleanup occur before final signoff on completion of the project.


 

 

***** Complex Purchase Orders are only available for creation in the Buyers Work Center (BWC) *****



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

To better illustrate the flows - some Purchase Order Numbers and Invoice Numbers might vary in the example screenshots the amounts should match


 

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 ($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%)

(THIS STEP DONE IN THIS NOTE)

NOTE: $0 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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