Payables provides sophisticated purchase order matching features to ensure that you only pay for goods and services you ordered, received and accepted. Payables is tightly integrated with Oracle Purchasing to facilitate paperless matching, but you can take advantage of matching to purchase orders even if you are using another purchasing system with Payables. Note that you can match to receipts only if you use Oracle Purchasing.
This document explains the data necessary to integrate Payables with a non-Oracle purchasing system and describes how Payables uses the data to perform two-way, three-way and four-way matching to purchase orders.
Important: We only include descriptions of the required tables and columns for matching to a non-Oracle purchasing system. For complete details on all the entities and relationships that Payables uses for matching, see: Table Definitions Payables Applications Technical Reference Manual.
This discussion includes the following topics:
Related Topics
Entering Invoices with Matched Purchase Orders in the Invoice Workbench, Oracle Payables User Guide
Purchasing Integration, Oracle Payables User Guide
Payables uses several of Oracle Purchasing tables for matching. To implement matching in Payables, you need to load these tables with the data from your non-Oracle purchasing application.
AutoUpgrade automatically installs these and other necessary Oracle Purchasing application tables when you install Payables.
Each record in this table represents a purchase order, which is an order for goods or services from a single supplier. Each purchase order may have multiple lines (PO_LINES).
In addition, each blanket purchase order may have multiple blanket releases (PO_RELEASES), which release an amount from the blanket.
Each record in this table represents a purchase order line, which identifies the items and unit price for the goods ordered on a purchase order. Each purchase order line may have multiple shipments (PO_LINE_LOCATIONS).
Each record in this table represents a purchase order shipment, which identifies the quantity of an item shipped to a buyer location by the supplier. Each purchase order shipment may have multiple accounting distributions (PO_DISTRIBUTIONS).
Each record in this table/view represents a purchase order distribution, which identifies the account charged for the items on a purchase order shipment.
Each record in this table represents a blanket release for a purchase order. A blanket release may create multiple shipments.
Each purchase order shipment can be matched to multiple invoices (AP_INVOICES), and a single invoice may be matched to multiple purchase order shipments.
When you match an invoice to a purchase order shipment, Payables creates an invoice distribution (AP_INVOICE_DISTRIBUTIONS) from each purchase order distribution on the shipment. When you match an invoice to a single purchase order distribution, Payables creates a single invoice distribution from the purchase order distribution.
The following section describes the tables and the columns that Payables supports for matching to purchase orders from your non-Oracle purchase system. We describe how the columns are used and, if a column is required, the values you must load to successfully perform matching. For a complete description of the tables, please consult the Payables Applications Technical Reference Manual.
Important: You must populate all NOT NULL columns in the purchasing tables.
The following table describes column information for the PO_HEADERS_ALL table.
| Column Name | Null | Type | Comments |
|---|---|---|---|
| PO_HEADER_ID | NOT NULL | NUMBER | Primary key |
| AGENT_ID | NOT NULL | NUMBER | Foreign key: HR_EMPLOYEES |
| TYPE_LOOKUP_CODE | NOT NULL | VARCHAR2(25) | Foreign Key: PO_LOOKUP_ CODES |
| LAST_UPDATE_DATE | NOT NULL | DATE | N/A |
| LAST_UPDATED_BY | NOT NULL | NUMBER | N/A |
| SEGMENT1 | NOT NULL | VARCHAR2(20) | PO number |
| SUMMARY_FLAG | NOT NULL | VARCHAR2(1) | N |
| ENABLED_FLAG | NOT NULL | VARCHAR2(1) | Y |
| VENDOR_ID | NUMBER | Foreign key: PO_VENDORS | |
| VENDOR_SITE_ID | NUMBER | Foreign key: PO_VENDOR_SITES | |
| TERMS_ID | NUMBER | N/A | |
| FREIGHT_TERMS_ LOOKUP_CODE | VARCHAR2(25) | Foreign key: PO_LOOKUP_ CODES | |
| CURRENCY_CODE | VARCHAR2(15) | N/A | |
| APPROVED_FLAG | VARCHAR2(1) | Y |
Enter the ID for the agent who created the purchase order.
This value is used by the following reports in Payables: Merge Suppliers, Matching Agent Notice and Receiving Hold Requestor Notice.
Enter BLANKET or STANDARD (Lookup Type: PO TYPE) to identify the type of purchase order.
Enter the ID for the payment terms of the purchase order. Payables defaults this value during matching of PO Default and Quickmatch invoices in the Invoices window. Payables Open Interface Import may also use this value as a default for matched invoices during import.
If you choose to leave this column empty, Payables will not warn you if the purchase order and invoice payment terms differ.
Enter a value (Lookup Type: FREIGHT TERMS) to identify the freight terms for the purchase order. See: Lookups, Oracle Payables User Guide.
Enter the currency code for the purchase order. You can obtain a list of valid codes from FND_CURRENCIES.CURRENCY_CODE.
The currency code for the invoice you want to match to this purchase order must be the same as the code you enter here.
The following table describes column information for the PO_RELEASES_ALL (Blanket Releases) table.
| Column Name | Null | Type | Comments |
|---|---|---|---|
| PO_RELEASE_ID | NOT NULL | NUMBER | Primary key |
| LAST_UPDATE_DATE | NOT NULL | DATE | N/A |
| LAST_UPDATED_BY | NOT NULL | NUMBER | N/A |
| PO_HEADER_ID | NOT NULL | NUMBER | Foreign key: PO_HEADERS |
| RELEASE_NUM | NOT NULL | NUMBER | Release number |
| AGENT_ID | NOT NULL | NUMBER | Foreign key: HR_EMPLOYEES |
| RELEASE_DATE | NOT NULL | DATE | N/A |
The following matching to purchase order database table describes column information for the PO_LINES_ALL table.
| Column Name | Null | Type | Comments |
|---|---|---|---|
| PO_LINE_ID | NOT NULL | NUMBER | Primary key |
| LAST_UPDATE_DATE | NOT NULL | DATE | N/A |
| LAST_UPDATED_BY | NOT NULL | NUMBER | N/A |
| PO_HEADER_ID | NOT NULL | NUMBER | Foreign key: PO_HEADERS |
| LINE_TYPE_ID | NOT NULL | NUMBER | Foreign key: PO_LINE_TYPES |
| LINE_NUM | NUMBER | Used for Query | |
| ITEM_ID | NUMBER | Null | |
| ITEM_DESCRIPTION | VARCHAR2(240) | Display only | |
| UNIT_PRICE | NUMBER | N/A | |
| TYPE_1099 | VARCHAR2(10) | N/A |
Enter the ID for the line type of the purchase order line. You can obtain a list of valid IDs from PO_LINE_TYPES.LINE_TYPE_ID.
Do not enter a value in this column. Payables does not allow you to record purchase order lines with Items unless you install Oracle Purchasing.
Enter a description for your purchase order line. You can use this column to record information about the item on the purchase order line. Payables displays this description in the Purchase Order Shipments zone during matching.
Enter the income tax type for the purchase order line, if the supplier for the purchase order is a 1099 supplier. Payables assigns this type as the default income tax type for each invoice distribution created by matching to this purchase order line. If you leave the column empty, Payables uses the income tax type for the supplier as the default.
See: Entering Invoices for Suppliers Subject to Income Tax Reporting Requirements, Oracle Payables User Guide.
You can obtain a list of valid types from AP_INCOME_TAX_TYPES.INCOME_TAX_TYPE.
The following table describes column information for the PO_LINE_LOCATIONS_ALL (PO Shipments) table.
| Column Name | Null | Type | Comments |
|---|---|---|---|
| LINE_LOCATION_ID | NOT NULL | NUMBER | Primary key |
| LAST_UPDATE_DATE | NOT NULL | DATE | N/A |
| LAST_UPDATED_BY | NOT NULL | NUMBER | N/A |
| PO_HEADER_ID | NOT NULL | NUMBER | Foreign key: PO_HEADERS |
| PO_LINE_ID | NOT NULL | NUMBER | Foreign key: PO_LINES |
| QUANTITY | NUMBER | Quantity ordered: 2-way match | |
| QUANTITY_RECEIVED | NUMBER | 3-way match | |
| QUANTITY_ACCEPTED | NUMBER | 4-way match | |
| QUANTITY_BILLED | NUMBER | UPDATED by Payables | |
| QUANTITY_CANCELLED | NUMBER | 0 or Null | |
| UNIT_MEAS_ LOOKUP_CODE | VARCHAR2(25) | Display only | |
| PO_RELEASE_ID | NUMBER | Foreign key: PO_RELEASES | |
| SHIP_TO_LOCATION_ID | NUMBER | Foreign key: HR_LOCATIONS | |
| TAXABLE_FLAG | VARCHAR2(1) | Y or N (tax matching) | |
| TAX_NAME | VARCHAR2(15) | Tax code match (TAX DIFF HOLD) | |
| APPROVED_FLAG | VARCHAR2(1) | Y | |
| SHIPMENT_NUM | NUMBER | Shipment number | |
| SHIPMENT_TYPE | VARCHAR2(25) | Foreign Key: PO_LOOKUP_CODES | |
| INSPECTION_ REQUIRED_FLAG | VARCHAR2(1) | Y or N (4-way match) | |
| RECEIPT_ REQUIRED_FLAG | VARCHAR2(1) | Y or N (3-way match) | |
| CLOSED_CODE | VARCHAR2(1) | Null |
Enter the quantity of goods ordered for the purchase order shipment. Payables uses this amount to match against if you are using 2-way matching. Payables verifies that this quantity matches the invoice quantity within defined tolerance levels and places the invoice on hold if it doesn't match. In addition, if the quantity of the invoice is greater than the shipment quantity, your Payables warns you during invoice entry that the match will result in an overbill.
Enter the quantity of goods received/accepted if you are using 3-way/4-way matching. Payables verifies that the quantity matches the invoice quantity within defined tolerance levels and places the invoice on hold if it doesn't match.
Do not enter a value in this column, unless you have already matched an invoice to this purchase order shipment. When a match successfully completes (invoice is validated), Payables updates this column with the quantity you specified during matching.
Only enter a value in this column if you have cancelled a portion of the purchase order shipment in your non-Oracle purchasing system. The amount you enter reduces the amount that Payables considers to be the outstanding quantity ordered. Payables displays a warning if you try to match to a shipment which has been cancelled.
When you cancel a shipment, Oracle Purchasing sets the PO_LINE_LOCATIONS.QUANTITY_CANCELLED to:
Payables displays this value in the matching zones, but does not validate the column. You can enter any value into this column; however, you should use the same value that you use in your non-Oracle purchasing system.
Enter Y or N to indicate the purchase order shipment is subject to tax. If you enter Y, enter a value in the TAX_NAME column. During Invoice Validation, Payables verifies that the tax code value for the purchase order shipment matches the tax code value on the invoice and places a Tax Difference hold on the invoice if the tax code values don't match.
Enter the tax value (tax code or tax group) used to verify that the tax values on the invoice and purchase order shipment match. You do not need to enter a value if you enter N in the TAXABLE_FLAG column.
Enter BLANKET, STANDARD, or SCHEDULED (Lookup Type: SHIPMENT TYPE) to identify the type of purchase order shipment.
Do not enter a value in this column if you want to match an invoice to this purchase order shipment. If you enter the values CLOSED, FINALLY CLOSED, or CLOSED FOR INVOICE in the column, Payables warns you that you are matching to a closed purchase order.
Payables uses a view (PO_DISTRIBUTIONS_AP_V) to the PO_DISTRIBUTIONS_ALL table to perform purchase order distribution matching. The following table shows information for PO_DISTRIBUTIONS_ALL.
| Column Name | Null | Type | Comments |
|---|---|---|---|
| PO_DISTRIBUTION_ID | NOT NULL | NUMBER | Primary key |
| LAST_UPDATE_DATE | NOT NULL | DATE | N/A |
| LAST_UPDATED_BY | NOT NULL | NUMBER | N/A |
| PO_HEADER_ID | NOT NULL | NUMBER | Foreign key: PO_HEADERS |
| PO_LINE_ID | NOT NULL | NUMBER | Foreign key: PO_LINES |
| LINE_LOCATION_ID | NOT NULL | NUMBER | Foreign key: PO_LINE_ LOCATIONS |
| SET_OF_BOOKS_ID | NOT NULL | NUMBER | N/A |
| CODE_COMBINATION_ID | NUMBER | Foreign key: GL_CODE_ COMBINATIONS | |
| QUANTITY_ORDERED | NUMBER | N/A | |
| QUANTITY_DELIVERED | NUMBER | Display only | |
| QUANTITY_BILLED | NUMBER | UPDATED by Payables | |
| QUANTITY_CANCELLED | NUMBER | 0 or Null | |
| DELIVER_TO_PERSON_ID | NUMBER | Foreign key: HR_EMPLOYEES | |
| RATE | NUMBER | Foreign currency | |
| AMOUNT_BILLED | NUMBER | UPDATED by Payables | |
| ENCUMBERED_AMOUNT | NUMBER | If encumbrance accounting enabled | |
| BUDGET_ACCOUNT_ID | NUMBER | N/A | |
| ACCRUAL_ACCOUNT_ID | NUMBER | N/A | |
| VARIANCE_ACCOUNT_ID | NUMBER | N/A | |
| DISTRIBUTION_NUM | NOT_NULL | NUMBER | distribution number |
| PROJECT_ID | NUMBER | Projects | |
| TASK_ID | NUMBER | Projects | |
| EXPENDITURE_TYPE | VARCHAR2(30) | Projects | |
| PROJECT_ ACCOUNTING_CONTEXT | VARCHAR2(30) | Projects | |
| EXPENDITURE_ ORGANIZATION_ID | NUMBER | Projects | |
| EXPENDITURE_ITEM_ DATE | DATE | Projects |
Enter the set of books ID for your purchase order distribution. The ID you enter must be for the set of books you define in the Set of Books window.
Enter the Accounting Flexfield ID for the expense account you want to charge for the goods on the purchase order distribution.
Enter the amount of goods charged to the Accounting Flexfield for this purchase order distribution.
Important: NOTE: Payables does not validate the following, but assumes it to be true: Total of PO_DISTRIBUTIONS.QUANTITY_ORDERED for one PO_LINE_LOCATION_ID = PO_LINES_LOCATIONS.QUANTITY (for the same ID). Payables sometimes prorates the PO_DISTRIBUTION.QUANTITY_ORDERED using the PO_LINES_LOCATIONS.QUANTITY as the total.
Enter the same Accounting Flexfield ID you entered for the CODE_COMBINATION_ID. Payables allows you to record budget, accrual, and variance (price and exchange rate) amounts for your purchase order distributions, but requires you to charge these amounts to the same expense account for the distribution.
Do not enter a value in this column, unless you have already matched an invoice distribution to this purchase order distribution. When a match successfully completes (invoice is validated), Payables updates this column with the quantity you specified during matching.
Enter a value in this column only if you have cancelled a portion of the purchase order distribution in your non-Oracle purchasing system. The amount you enter reduces the amount that Payables considers to be the outstanding quantity ordered. Payables displays a warning if you try to match to a shipment which has been cancelled.
Important: Invoice Validation does all quantity checks assuming the quantity for the distribution is QUANTITY_ORDERED minus QUANTITY_CANCELLED.
Do not enter a value in this column unless you have already matched an invoice to this purchase order shipment. When a match successfully completes (invoice is validated), the system updates this column with the amount of the quantity you specified during matching multiplied by the unit price.
Enter project information from Oracle Projects if you want to associate the invoice distribution (created through matching) with a project in Oracle Projects. Payables transfers the information into the AP_INVOICE_DISTRIBUTIONS table and uses it to create the default Accounting Flexfield for the invoice distribution.
Perform the following steps to match invoices to purchase order information from your non-Oracle purchasing system:
To load invoice information into Payables via SQL*Loader, first create a program that produces a flat file containing the information from your non-Oracle purchasing system for the purchase orders you want to match to invoices.
Use SQL*Loader to load the required information into the purchasing tables. You will need to create a SQL*Loader control file to format the information you want to load. The file you write will vary greatly depending on the nature and format of the flat file you use. Your control file must populate the purchasing tables as indicated in the previous table descriptions. See also: SQL*Loader (ORACLE8 Server Utilities Guide).
You match invoices to purchase order shipments during invoice entry. This online function links an invoice in the database to one or more purchase order shipments you choose. You cannot pay or account for an invoice until the invoice is validated.
You can match any type of invoice to a purchase order, including credit and debit memos.
When you match during invoice entry, you indicate whether you want to match to the purchase order shipment or to specific invoice distributions. You then choose the shipment or distribution you want to match to, and the quantity and price you are matching. Then Payables performs the following for each matched shipment:
Payables lets you enter a credit or debit memo (with a negative amount) and match to a purchase order. You would enter a negative quantity in the Quantity Invoiced field in the Purchase Order Shipment Match zone, thereby matching this credit invoice to one or no purchase order shipment lines. Payables then decreases the quantity billed against the purchase order shipment line(s).
When you match a credit invoice to a purchase order shipment line, Payables:
Invoice entry closes a purchase order shipment (sets CLOSED_CODE in PO_LINE_LOCATIONS to 'CLOSED') when:
Payables does not support finally closing a purchase order if you do not install Oracle Purchasing with Payables. See: Final Matching Invoices and Final Closing Purchase Orders, Oracle Payables User Guide.
Without an Oracle Purchasing application, Payables does not allow you to review purchasing information, such as purchase order header and line information, online in the Invoice Workbench.
Invoice Validation is the Payables feature that performs two-, three-, or four-way matching. An invoice must pass Invoice Validation before you can pay or account for the invoice. Invoice Validation reviews each invoice and places one or more matching holds on the invoice if the invoice does not meet your matching criteria. It also releases any existing matching holds if you adjust your invoice or purchase order to meet your matching criteria and current information on order, receipt and acceptance prices and quantities.
You must submit Invoice Validation for all invoices, not just matched invoices, since it also checks for distribution variances, tax variances, and exchange rate information. You can submit Invoice Validation online for an invoice or in batch for a group of invoices. See also: Invoice Validation, Oracle Payables User Guide.
When you match to a purchase order, Payables automatically checks that the total of PO_DISTRIBUTIONS.QUANTITY_ORDERED = AP_INVOICE_DISTRIBUTIONS.QUANTITY_INVOICED (2-way matching).
Payables only checks QUANTITY_RECEIVED (3-way matching) if the RECEIPT_REQUIRED_FLAG is set to Y and only checks QUANTITY_ACCEPTED (4-way matching) if the INSPECTION_REQUIRED_FLAG is set to Y.
You can define percentage and amount tolerances for Matching quantities and price. Payables places a matching hold on an invoice only if the invoice quantity or price is greater than the purchasing quantity or price by more than your tolerance.
When you submit Invoice Validation, Payables places a matching hold on a matched invoice (by inserting one or more rows in AP_HOLDS, one row for each type of hold for each invoice distribution) if:
See also: Releasing Holds, Oracle Payables User Guide.
Payables supports using encumbrance accounting with a non-Oracle purchasing system. To use encumbrance accounting, however, you must initially record the encumbered amount for the purchase order to which you want to match an invoice.
Then, when Invoice Validation validates the invoice, if there is a variance between the invoice and its matched purchase order within the tolerances you define, Payables automatically creates an encumbrance journal entry for the amount of the variance.
Important: Invoice Validation uses the Payables table, AP_TRANSFER_ENCUMBRANCE, if you enable encumbrance accounting. Payables never drops this table, but deletes the appropriate lines from this table at the beginning of the program each time you submit Invoice Validation.
With an Oracle Purchasing application installed, Payables allows you to record these variance encumbrance journal entries to a separate variance account. With a non-Oracle purchasing system, Payables requires you to record the variance amount to the same Accounting Flexfield as the expense Accounting Flexfield for the purchase order distribution.
When you post the invoice to your general ledger, Payables relieves both the original encumbrance journal entries that you created when you encumbered the purchase order and the encumbrance journal entries it automatically created for the variance. Payables then creates actual journal entries for your invoice transaction. Your variance encumbrance journal entries and your actual journal entries update your account balances only when you post the journal entries in your general ledger. See also: Encumbrances in Payables, Oracle Payables User Guide.
The budgetary control feature does not use purchasing information unless you install Oracle Purchasing.
Related Topics
Encumbrance Entries in Payables, Oracle Payables User Guide
Payables does not allow you to purge purchasing information if you do not have an Oracle Purchasing application installed. When you match an invoice to a purchase order from a non-Oracle purchasing system, you will not be able to purge the invoice because Payables requires that all objects, including matched purchase orders, associated with an invoice must be purgeable before you can purge the invoice. See: Purging Records, Oracle Payables User Guide.