Process invoices with the Oracle Financials Cloud integration

When you process invoices using the Oracle Financial Cloud integration, you follow the normal procedures for verifying, coding and approval, with these additional features:

  • Support for split deliveries.
  • Specifying distribution combinations.
  • Support for supplier sites.
  • Specifying line types (Freight, Item, Miscellaneous)

Split deliveries

Sometimes the goods from a purchase order are delivered in separate shipments. For example, you may promptly receive some of the goods from a purchase order, whereas other goods from the same purchase order do not arrive until weeks later. This is referred to as a "split delivery" because the fulfilment of the purchase order is split into multiple deliveries. Split deliveries are often scheduled in advance according to a delivery schedule. You can specify which delivery a line item belongs to using the line-item field, Purchase Order Schedule Line Number field.

To specify which delivery a line item belongs to, simply specify the delivery schedule number in the Purchase Order Schedule Line Number field for the line you want to specify. It is not necessary to specify a value if the purchase order delivery is not split.

Specifying distribution combinations (account coding)

When you perform account coding (known as distribution combinations in Oracle Financials Cloud), Kofax AP Essentials uses master data from Oracle Financials Cloud to provide automatic coding suggestions. Note the following:

  • The Oracle Financials Cloud integration cannot export line items and coding data simultaneously. If an invoice contains line-items and account-coding data, the line-item data is excluded, so only the coding data is sent to Oracle Financial Cloud.

  • The Oracle Financials Cloud integration cannot export coding data for purchase order invoices. To process a purchase order invoice that contains coding data, you must choose one of the following options:

    • Prioritize account coding by removing the purchase order header field and all line items, so you can code the invoice.

    • Prioritize the purchase order information by removing all coding lines.

Supplier sites

When Kofax AP Essentials imports suppliers from Oracle Financials Cloud, each supplier site is treated as a separate supplier. For example, assume you have a supplier, ACME Inc, which has three sites: New York, Chicago and Tokyo. During verification in Kofax AP Essentials Office, each supplier site would appear as a separate supplier in the Supplier box. The suppliers in this example would be listed as "ACME Inc - New York", "ACME Inc - Chicago" and "ACME Inc - Tokyo". The names are created by combining the Name and Location fields of the supplier master data in Kofax AP Essentials.

Creating suppliers in this manner does not affect Oracle Financials Cloud in any way. When Kofax AP Essentials sends processed invoices to Oracle Financials Cloud, the integration posts the data to the correct supplier sites.

Specifying line types

In Oracle Financials Cloud, line items have a type such as "freight", "item", or "miscellaneous". If an administrator has added a custom line-item field (LIT_LineType) as described here, you can specify the type of a line item during line-item verification. You specify a line-item type by selecting the appropriate type from the line type field. Note that there can only be one line-item field of type "freight".

If the custom line-item field (LIT_LineType) is not defined in your setup, all line items have the type "item" when sent to Oracle Financials Cloud.

Mark an invoice as credit or debit

When verifying invoices, you can change invoices from debit to credit (credit note/credit memo) and vice versa. To change whether an invoice is debit or credit, simply locate the credit/debit field and make the appropriate selection in the drop-down box. When you process a credit memo, the integration makes sure the invoice amount is negative when the credit memo is sent to Oracle Financials Cloud.

Specifying payment methods

Payment method information is required for incoming invoices in Oracle Financials Cloud. If an administrator has added a payment method field as described here, you can specify the payment method during verification. You specify a payment method by selecting the appropriate method from the payment method field.

Specifying tax codes

In Oracle Financials Cloud, tax codes are often determined using tax classification fields or ship-to location fields. Kofax AP Essentials can import tax classification and location (ship-to location) master data from Oracle, which you can use as field suggestions when specifying tax classification and ship-to locations during verification.

Depending on how Oracle Financials Cloud is configured, an administrator can set up the TAX HANDLING settings in Kofax AP Essentials to import tax classification data, location data or both. Then the master data can be connected to fields in Kofax AP Essentials to provide field suggestions (autocomplete) and validation. This is beneficial because the use of master data prevents errors which otherwise occur during manual entry.

AP Essentials Office users can specify tax classification fields and/or ship-to location fields as header fields or line-item fields. Header fields provide default values for empty line-item fields. For example, if the ship-to location header field has a value, but all or some of the ship-to location line-item fields are empty, the empty fields use the value of the header field when the data is sent to Oracle Financials Cloud. Values in line-item fields take precedence over the default value provided by the header field. In other words, if you specify a value in a tax classification or ship-to location line-item field that differs from the header field, the line-item field value is used.