1. XYZ CO. LTD.
User Manual
Manual Account Payable Invoice Creation
Suvrendu Bose
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents
of the document. Type the abstract of the document here. The abstract is typically a short summary
of the contents of the document.]

2. Document Name: User Manual
Process Name: Manual Accounts Payable Invoice Creation
Issue Date
Document Ref. No.:
Version:
Created By:
Reviewed By:
Approved By:
Distribution List:
1.
2.
3.
4.

3. Table of Content
1. Purpose
2. Scope
3. List of Abbreviation
4. Basic Business Need
5. Process Overview
6. Business Rules
a. Applicability
b. Restriction
c. Rule Description
7. Procedures
8. Related Documents
9. Related Process
10. Process Owner
11. Roles & Responsibilities
12. Training Requirement
13. Appendix
a. List of Forms
b. Help documents
c. Dos & Don’ts

4. 1. Purpose
The purpose of this document is to describe the process and procedures to be followed by
the user to carry out the “Manual Invoice Creation” in Oracle E-Business Suite R – 12.
2. Scope
This process and procedure applicable only for carry out “Manual Invoice Creation” in
Oracle E-Business suite R-12, version 12.1.1 and above.
3. List of Abbreviations
(List all abbreviations used in this document)
4. Basic Business Needs
The situation may arise that the organisation has to settle vendors’ liability for which no
approved purchase order is available in the system. In order to do so the organisation may
have to apply the provision of Indian Service Tax and/or Indian Income Tax acts. Service tax
will be applicable if the vendor is registered under service tax and charged service tax in his
invoice. Indian Income Tax Act will be applicable for deduction of tax at source. This
situation will arise under following circumstances:
a. Approved purchased order is not available in the system
b. Transaction does not require issue of approved PO from system as per DOAM
c. There is no supply of goods for which a Inventory need to be maintained
d. The transaction is not of a capital nature.
5. Process Overview
The process is summarised as follows:
a. The department/function, procure the goods or obtain any services, will forward
the vendor invoice to the AP department.
b. The invoice should accompany the copy of the approved manual PO/WO and
certificate of completion issued by the concerned department.
c. Upon receiving the invoice along with all required supporting document the AP
clerk will verify manually the invoice and ensure the arithmetical accuracy.
d. He will also ensure that a valid Supplier code and site is available in the system.
e. Supplier’s additional information (IL TAX related) is appropriately created in the
system.
f. AP clerk will create an invoice in the AP module of the application. While
creating the manual invoice he should follow the procedure explained in the
“Procedure” section of this document.
g. Upon validation of the Invoice and on initiating approval for the Invoice this
Invoice will be forwarded to the Auditor for approval.

5. h. The approver will have the option for either Approving / Rejecting the
transaction or for requesting additional information for this transaction.
i. After the Auditor approves the Invoice the Invoice will be routed to the AP
Manager for Approval.
j. Once the Invoice has been approved by all the approval authorities the
scheduled create accounting process program will account for the Invoice.
For detail overview of the process please refers Business Process Diagram (BPD) “Manual
AP Invoice Process” (Ref. No. BPD/AP/001)

6. 6. Business Rules
a. Applicability
i) This process is applicable only for non capital nature procurement
ii) Service Tax will be applicable only for invoice of services.
iii) Tax deducted at source (TDS) will be applicable only for invoice of
services.
b. Restriction
i) This process is not applicable for creation of supplier invoice for
which a PO/or GRN is available.
ii) User should not use AP Accrual account code in the distribution of
the invoice.
c. Rule Description
i) NA.
7. Procedure
This section describes the steps to be followed by the user in the Oracle Application with
detail screen shots. After successful log in into the Oracle Application the user has to
follow the following navigation to create a manual/standalone invoice in the system.
Prerequisite: Before navigating to the application the user should have following:
 Original copy of the vendor invoice.
 Copy of the manual PO/WO.
 Certificate of completion/ Proof of receipt of goods.
Caution: All the preceding tasks as shown in the process diagram must be completed
before performing this task
Navigation: India Local Payables  Oracle Payables  Invoices  Entry  Invoices
After successful navigation “Invoice Workbench” form will open. All the invoices have to be
entered in this form.
Remember: Following steps to be followed only for creating an invoice which is received
from a supplier that will not be matched either to a purchase order or a receipt.
Service Tax can only be accounted and transacted with the standalone invoices. Adding of
non service tax related taxes will result in expensing out the tax amount attached to the
Invoice line.
> Navigate to the Invoice Workbench

7. 1. Accept the default for Operating Unit or select the required operating unit from LOV.
2. Invoice Type always is “Standard”.
3. Enter either Supplier name or supplier no and select supplier site.
4. Enter supplier’s Invoice Date, Invoice Number, Invoice Currency, and Invoice Amount
(Invoice amount should be total amount of the invoice (including service tax).
1 2

8. 5. Enter GL Date (the date on which you want to account for this transaction), Payment
Currency and Description. This description will appear in the right bottom corner of the
Invoice workbench.
6. Review and update the Terms Date, Payment Terms, Pay Group, Payment Method, as
necessary. Remember to keep Match action always “Purchase Order”.
7. Payables automatically schedule payment of the invoice using the Invoice Amount, Terms,
and Terms Date of the header fields. Enter or review the defaults for these fields.
8. Enter other invoice header information as required.
9. To enter invoice lines detail, select the Lines Tab. Remember to enter an invoice line for each
line that appears on a supplier's invoice.
9

9. 10. Enter the line Type always “Item”.
11. Enter the basic Amount (without taxes) of the invoice line as shown on the supplier's
invoice.
12. Enter a Description of the item you are invoicing.
13. Accept the default GL Date or change as necessary
14. To enter distribution information for the line click on “Distributions” button.
14
15

10. 15. Enter accounting code combination in “Account” field. Don’t use “AP Accrual” account for
any manual/stand alone invoice. It will cause error for AP & GL reconciliation for AP Accrual
account.
16. To enter TDS information scroll to the right.
17. To enter WCT/TDS Tax Type click on extreme right box marked ().
18. Separate entry form “Additional information for India” as shown in the screen shot will
open.
19. Select applicable TDS/WCT section type and click “OK” button.
20. Save your work and close the Distributions window to back to the invoice workbench.
21.
22. Enter tax lines for the invoice. You can enter tax lines: by clicking on Tools – IL Tax details
23. Choose Tax Type ‘Service Tax’ and enter a Precedence for calculation
24. Choose Tax Type ‘Service Tax- Cess’ and enter a Precedence depending on the ‘Service Tax
Type’ for calculation
25. Choose Tax Type ‘Service Tax- SHE Cess’ and enter a Precedence depending on the ‘Service
Tax Type’ for calculation
26. Save your work
27. Tax Lines will be inserted on saving the Record. Enter other invoice line information as
required (WCT/TDS Tax Type)
28. Click on ‘Actions – Validate’ to Validate the record entered
29. Credit Memo on Trading Partner / Standard Invoice on the Tax Authority is generated
30. If Invoice put on hold for some discrepancy make the relevant changes and release the hold
31. Initiate the Invoice for Approval
32. Invoice will pass through the Approval workflow
33. After Approval Create Accounting process will generate accounting for the Invoice
17
18

11. TDS on Provisions
> Create an Invoice with 'Zero' Amount.
> Create two invoice distributions lines
The first with provision amount. Assign TDS Tax to this invoice line
The second line should be created negative of the provision amount. This should not have
any TDS Tax assigned
> The first line should have the GL Date of the last date of the last period of the financial
year and the second should GL Date as first day of the first period of the new financial year
This will automate provision creation and reversal. At the same TDS would be calculated for
the provisioned amount.
(Screen Shots to be added)
8. Related Documents
a. Standard Operating Practice (SOP) of Accounts Payable
b. Delegation of Authority Matrix (DOAM)
c. Corporate Accounting Manual
9. Related Process
A. Upstream Process
i. Issue of Manual PO/WO
ii. Issue of Certificate of Completion/ Issue of Proof of receipt of Goods
B. Downstream Process
i. Release of Vendor Payment
ii. TDS Settlement
iii. Service Tax Settlement
10. Process Owner
Payable manager of Corporate Accounts will be the Owner of this process.
11. Roles & Responsibilities
(This Section will describe the roles and responsibilities of all the related stockholders)
12. Training Requirement
(This section will describe the training requirement and standard of proficiency of the
users)
13. Appendix