Skip to main content

How is due date calculated on payables invoice

Here is how the Due date calculation works:
---------------------------------------------------------------
-> Generally,  Due date get calculated based on the most recent of the available start dates. Most recent available start date is derived based on the following formula.

Greatest( Goods_Received_Date + Receipt_Acceptance_Days, Invoice_Date, Terms_Date ).

->In the algorithm above, Goods_Received_Date is a date that gets populated on the invoice based on terms_date_basis at supplier/site level.

a. If terms_date_basis = 'Goods Received' then, Goods_Received_Date get populated.

b. If terms_date_basis = 'Invoice Received' or anything else then, Goods_Received_Date is null.

-> Receipt_Acceptance_Days is the number of days defined for 'Receipt Acceptance Days' under the Invoice tab in Payables Options.

->So, the due date basis is the most recent of INVOICE DATE, TERMS DATE, GOODS RECEIVED DATE+RECEIPT ACCEPTANCE DAYS.

->In case of a matched invoice, the system considers the Receipt Transaction date from the
Receipt for the calculation of a recent start date, because sometimes the GOODS RECEIVED DATE is null.  This functionality exists from 11i beginning only. Check bug#1655225 for details.

a.So first system determines recent date of GOODS RECEIVED DATE+RECEIPT ACCEPTANCE DAYS and RECEIPT TRANSACTION DATE.

b.After that again checks most recent date again from the formula defined.

-----------------------------------------------------------------------------
If the customer doesn't want the system to use 'Receipt dates' then disable 'Recalculate Payment Schedules'.

If  the customer wants recalculation, then the system considers 'Receipt date' for a matched invoice.
Labels:

Comments

Post a Comment

Popular posts from this blog

General Ledger FAQ

1.  What responsibility should I use when doing the set up for General Ledger? Use a seeded responsibility like 'Oracle General Ledger Super User'. You may also need to use the System Administrator responsibility. 2.  What are the pre-requisites required to define a new calendar? According to your business needs you need to decide the calendar type required i.e. monthly, weekly or biweekly, the number of periods, adjusting periods and the maximum number of periods within a fiscal year. 3. What are the pre-requisites required to define a new Ledger? Define a Calendar, Chart of Accounts and enable the functional Currency  and convention of subledger accounting method. 4. Why must I check the calendar definition before assigning to a Ledger? The calendar definition cannot be changed once it is assigned to a set of books so it is very important to check that the calendar definition is suitable to the specific business needs, has been d
Post a Comment
Read more

Difference Between MTS, ATO, MTO ,PTO ,CTO and ETO.

 Make-to-stock (MTS) In MTS environments, products are created before receipt of a customer order. Customer orders are then filled from existing stock, and then those stocks are replenished through production orders. MTS environments have the advantage of decoupling manufacturing processes from customer orders. Theoretically, this enables customer orders to be filled immediately from readily available stock. It also allows the manufacturer to organize production in ways that minimize costly changeovers and other disruptions. However, there are risks associated with placing finished goods into inventory without having a firm customer order or an established need. These risks tend to limit MTS environments to simple, low-variety, or commodity products whose demand can be forecasted readily.  Assemble-to-order (ATO) In ATO environments, products are assembled from components after the receipt of a customer order. The key components in the assembly or finishing process are pla
Post a Comment
Read more

Accounting entries in Oracle Purchasing and Payables

This document gives in detail different accounts used and the accounting impact of various transactions that take place in Oracle Purchasing and Oracle Payables. Both Standard costing and Average costing methods are considered. The accounts are Oracle Applications specific and might differ from the conventional accounting names. Examples are given wherever required for better understanding of the concept. The sources of these accounts are given. PURCHASING:  Receiving – For Accrual Process for perpetual Accruals Receipts for inventory purchases are always accrued upon receipt. And also use perpetual accruals for expense purchases you want to record uninvoiced purchase liabilities immediately upon the receipt of the expense goods. Receiving Account (Receiving Account) To record the current balance of the material in receiving and inspection. Where to define in Apps: Define Organization                                          Define Receiving Options
Post a Comment
Read more