Oracle Applications

White Paper
How to Create Invoices in iSupplier Portal in
Oracle R12
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R12 : White Paper on iSupplier Invoices In R12

Purvi Purswani
Sanjay Prasad and Sriram Ramanujam
1.0
13-Feb-2014

Table of Contents
INTRODUCTION ..................................................................................................................................................... 3
OBJECTIVE ....................................................................................................................................................................3
SCOPE/OUT OF SCOPE ....................................................................................................................................................3
TERMS USED .................................................................................................................................................................3
BUSINESS CASE ...................................................................................................................................................... 3
METHODOLOGY .............................................................................................................................................................3
BUSINESS EXAMPLE ........................................................................................................................................................4
CHANGES IN R12 ISUPPLIER PORTAL ..................................................................................................................................4
SETUP .................................................................................................................................................................... 4
A.
B.

PROFILE OPTIONS ..................................................................................................................................................4

CREATION OF THE SUPPLIER AS AN USER OF ORACLE APPLICATIONS ..................................................................................6
Case1: Registration of supplier as user on invitation. ...........................................................................................6
Case2: Direct registration of supplier as an Oracle user .....................................................................................13
C. PRE REQUISITE SETUPS BEFORE CREATING AN ISUPPLIER INVOICE...................................................................................14
BUSINESS FLOW 1 ................................................................................................................................................ 15
CREATION OF PURCHASE ORDER MATCHED INVOICES .........................................................................................................15
Case 1: When the match option in the PO shipment is set to Purchase Order ...................................................15
Case2: When invoice match option in the Purchase Order is set to Receipt .......................................................20
Case3: Over billing using ISP ...............................................................................................................................25
Case4: Creation of Credit Memo in ISP ...............................................................................................................27
BUSINESS FLOW 2 ................................................................................................................................................ 29
CREATION OF NON PURCHASE ORDER MATCHED INVOICES ..................................................................................................29
VIEW INVOICES AND PAYMENTS IN ISUPPLIER PORTAL ....................................................................................... 35
VIEW INVOICES ............................................................................................................................................................35
VIEW PAYMENTS..........................................................................................................................................................35

R12 : White Paper on iSupplier Invoices In R12

Introduction

Objective
How to create Payables invoices in iSupplier Portal of Oracle 12.X.X

Scope/Out of Scope
In this white paper we will cover followings:
a) Setup to create a supplier as a user in Oracle
b) Steps to create Purchase Order matched invoices in iSupplier portal
c) Steps to create Non Purchase Order matched invoices in iSupplier portal
This paper does not cover:
a) Creation and approval of Purchase order
b) Invoice validation process
c) AME setups required to determine the approval hierarchy for an invoice.
d) Creation of custom external iSupplier responsibility.

Terms Used
Invoice : Oracle Payable Invoice
PO : Purchase Order
NPO: Non Purchase Order
ISP: Internet Supplier Portal
OU: Operating Unit

Business Case
Methodology
Suppliers can directly create invoices in Oracle iSupplier portal.
They can create PO matched or Non PO matched invoices and submit it for approval to the company.
Once approved and validated, these invoices will be ready for payment.

R12 : White Paper on iSupplier Invoices In R12

Business Example
We will discuss following cases where a supplier can enter the invoices directly in Oracle iSupplier portal:
a)
b)
c)
d)

Creation of a Payables invoice where the match option is Purchase Order

Creation of a Payables invoice where the match option is Receipt
Overbilling of invoices matched to a Purchase Order
Creation of a Non Purchase Order Invoice.

Changes in R12 iSupplier Portal

a.

There is a change in technical design of R12 iSupplier portal. In 11i, the invoices created in iSupplier
portal were inserted in AP Invoice interface tables and then they would be moved to base tables by the
program Payables Open Interface Import. In R12 when user submits the invoice from iSupplier
portal they are directly inserted into AP Base tables and can be viewed from Invoice workbench.

b. A new functionality has been introduced in R12. The iSupplier user can now create a Non Purchase
Order Matched invoice in the iSupplier portal.

Setup
A. Profile options
1. To ensure that supplier users can register, log into the system, and receive notifications, you must
set up the necessary server URL addresses in below profile options:
a.

POS: External URL: This is the URL of external web server used to enable supplier user
access to ISP portal. Set this to http or https://<external web server machine>:<port> For
example: http://external.oracle.com:10333 or https://external.oracle.com:23423.
If you want to use PHP related login pages and navigation then the "POS: External URL"
should be of the format: http or https://<ServerName>:<PortNo>/pls/<DADName>
Example:

b. POS: Internal URL: This is the URL of the internal web server used to enable the internal
user access to ISP portal. Set this to http or https://<internal web server machine>:<port>
2. POS: Limit invoice to single PO - If this Profile option is set, then user can select only one PO per
invoice for matching. The valid values are Yes or No.
3. POS: Allow Invoice Backdating This profile option allows user to set the invoice date to be
prior to system date. The valid values are Yes or No.

R12 : White Paper on iSupplier Invoices In R12

4. POS: Enable Over billing If this profile option is set to Yes, the supplier can create a invoice for
a quantity greater than available quantity. However such invoice would go on hold during the
validation process subject to tolerance set at supplier site. The valid values are Yes or No.

5.

POS: Invoice Unit Price Change for Quantity-Based Matches If this profile is set then system
will check if the Value Basis in Purchase Order is Quantity, and then make the unit price field
editable. The price can then be edited based on the value set in the profile option. If the Value
basis in Purchase order is set to Amount then the unit price field will not be displayed at all. The
options for this profile option are: Not Allowed, Price Increase and Decrease, Price Increase, Price
Decrease.

R12 : White Paper on iSupplier Invoices In R12

B. Creation of the supplier as an user of Oracle applications

There are two ways to register a supplier as an user of Oracle.
If the purchase department knows the supplier contact details they can directly create a user for such
supplier. If contact details are not known they can invite the supplier to fill the details after which a
user would get created on approval.
Both options have been discussed below:

Case1: Registration of supplier as user on invitation.

1. Invite supplier to register in Oracle.
The purchasing department of the company would send out an invite to the supplier requesting them
to provide the necessary details to become an Oracle user
Navigation: Supplier Use Management > Supplier User Creation > Invite Supplier User
Enter the supplier name and the email id of the supplier contact.
In this example we are using the Supplier Philips International.
The email id of the supplier is purvi.purswani@oracle.com

Once you click on Invite there will be a confirmation message:

An email invitation would go to the given mail id requesting them to register their data with Oracle.
The email would look like this:
R12 : White Paper on iSupplier Invoices In R12

When the supplier clicks on the link, it would take him to below page where they can enter their contact
information.
The user should enter the name, email id and contact phone number as mandatory fields.

Users will receive a confirmation message on clicking Submit button:

2. The user from Purchase department who sent an invitation would get a notification requesting to
approve the supplier registration.

3. The user can then approve the supplier using below steps:
Navigation: Supplier Use Management > Supplier User Administration > Approve Users and Manager
User Profiles
Search for the user pending approval. Click on View Details button.

R12 : White Paper on iSupplier Invoices In R12

In this screen chose the responsibilities to which the supplier user would have access.
To create invoices they would need access to iSupplier portal Full Access.

4. In the same screen note below points:

Supplier Restrictions Access restricted by users supplier.

This means that when the supplier user logs into Oracle he will be able to see the data only for his
company. He would have access to invoices and Purchase orders for his company alone.
Site and Contact Restrictions
The company can decide to give access to either all sites/contacts of supplier or any selective site and
contact depending on requirement. By choosing a particular site here, the supplier user would have access
to Purchase orders and invoices or that site/contact only. They will not be able to see the POs and
R12 : White Paper on iSupplier Invoices In R12

invoices of other supplier sites. The supplier can also create invoices only for the sites which are chosen
here.
Under Site Restrictions click on Modify Sites.
Choose the site which the supplier should have access to.

In this case access is given only to New York site of Vision Operations OU. This means that the user
purvi.purswani@oracle.com will have access to the transactions of this site only. While creating invoices
also they can use only the New York site of Vision Operations OU.

Click on Approve button to approve the supplier user. When user clicks on Approve button a FND User
would be created.

A confirmation message will be displayed:

R12 : White Paper on iSupplier Invoices In R12

5. The user will be created and the selected responsibilities would get assigned.

6. There are 3 attributes in the Securing Attributes tab:

These attributes control the data which the supplier can enter/view in the responsibilities to which he has
access.
ICX_SUPPLIER_ORG_ID This is the vendor_id of the supplier from ap_suppliers table.
Here 46170 is the vendor_id of Philips International
R12 : White Paper on iSupplier Invoices In R12

ICX_SUPPLIER_SITE_ID This is the vendor_site_id of the supplier site to which the user has access.
Here 17913 is the vendor_site_id for New York site of Vision Operations OU which was selected as the
site which should be restricted to user above.
These are set automatically based on the data entered at time of registering or approving the supplier user.
The users access to enter and view information in the responsibilities will be restricted to the values set
here.

7. A supplier contact would also be created which can be viewed in the contacts page of the Supplier
Navigation: Payables/Purchasing responsibility > Supplier > Query for Philips International > Contact
Directory

This page would also display the information of the user details for the contact and the
responsibilities/sites to which they have access:

R12 : White Paper on iSupplier Invoices In R12

The supplier would also get a notification confirming the details which they can use to login to Oracle and
start creating/viewing transactions

R12 : White Paper on iSupplier Invoices In R12

Case2: Direct registration of supplier as an Oracle user

1. If the Purchasing Department user knows the details of the suppliers then they can directly register the
supplier as an user without sending any invitations.
Navigation: Supplier User Management > Supplier User creation > Register Supplier user:
Enter the supplier name and the details of the supplier contact.

Chose responsibilities and the site access as explained before.

Click on Register button

2. A confirmation message would be displayed:

R12 : White Paper on iSupplier Invoices In R12

3. The user will receive a notification with login details.

4. A contact would also be created for the supplier.

Below screenshot on supplier page shows both the contacts created for the supplier:

C. Pre requisite setups before creating an iSupplier Invoice

1. An Approved and Open Purchase order should exist in system before creating the invoice.
2. If the invoice match option in PO shipments is set to Receipt, then a receipt should first be created for
the invoice.
3. ERS PO will not be available for billing in iSupplier portal. These invoices are automatically billed on
running Pay on Receipt program, hence they will not be available in iSupplier Create invoice pages.
4. Once the PO is fully billed then such POs will also not appear for billing in ISP.

R12 : White Paper on iSupplier Invoices In R12

Business Flow 1
Creation of Purchase Order Matched Invoices
Case 1: When the match option in the PO shipment is set to Purchase Order
1. Business Action: Purchase Department creates Purchase Order
Navigation: PO Responsibility > Purchase order
Points to be noted:
PO Number: 6037,
Invoice Match Option: PO

R12 : White Paper on iSupplier Invoices In R12

2. Business Action: Receiving Department creates Receipt

Navigation: PO/Inventory Responsibility > Receipts
Points to be noted:
PO Number: 6037,
Receipt number: 23685

3. Business Action: Supplier Creates the invoice

a. Navigation: iSupplier Portal > Finance > Create invoices > Create invoices with a PO
Login with purvi.purswani@oracle.com

Points to be noted:
PO Number: 6037
Enter PO number and click on Go.
The supplier will see only the POs created with site as New York as per the access given at time
of registration
R12 : White Paper on iSupplier Invoices In R12

 User can check the Quantity ordered, Quantity Received and Quantity Invoiced before he decides
to proceed further.

b. Select the line to be billed and click on Next

c.

User will now come to the Invoice creation page where they can enter below details:

Points to be noted:
Enter the invoice number field. Invoice number is 6037-1
The invoice date will default to System date. Can be changed if required
Invoice type User can chose Invoice or Credit memo.
Verify the Remit to Details and change if required.
The Remit to LOV will show only New York as per the settings done at time of user registration.
Available Quantity: This is quantity ordered less quantity already billed for the PO line. In case there
are some invoices already created for such PO line, then this field determines how much more the
supplier can bill.
R12 : White Paper on iSupplier Invoices In R12

 Here the unit price is uneditable since the profile option POS: Invoice Unit Price Change for QuantityBased Matches is set to Not Allowed.
Under the Shipping and Handling region user can add Freight or Miscellaneous lines to the invoice.
The distribution account for Freight/Miscellaneous account would be same as the Item account on the
invoice.
d. Click on Next, user comes to the Manage Tax page where they can check the tax details

Points to be noted:
In Manage tax page, click on Calculate button.
System will automatically calculate tax based on the tax rules defined and insert the tax line.
User can edit the tax amount if required. If tax amount is edited ensure to click on Calculate tax again
so that changes get reflected.

e.

Click on Next, The Invoice summary will be displayed. Verify the same and then click Submit
button:

f.

User will get a confirmation message:

g. They can check the status of the invoice on the View Invoices page. This is discussed in the last
section.

R12 : White Paper on iSupplier Invoices In R12

h. Invoice will get created automatically and can be seen in the invoice workbench. This needs to be
validated and approved before making the payment to supplier.

Approval will be required if the option Use Invoice approval workflow is enabled in your Payables
options. On initiating approval the invoice would go to approver as per AME rules defined.

R12 : White Paper on iSupplier Invoices In R12

Case2: When invoice match option in the Purchase Order is set to Receipt
1. Business Action: Purchase Department creates Purchase Order
Navigation: PO Responsibility > Purchase order
Points to be noted:
PO Number: 6039,
Invoice Match Option: Receipt

R12 : White Paper on iSupplier Invoices In R12

2. Business Action: Receiving Department creates Receipt

Navigation: PO/Inventory Responsibility > Receipts
Points to be noted:
PO Number: 6039,
Receipt number: 23686
A receipt has been created for 60 units out of the 100 which were ordered.

3. Business Action: Supplier Creates the invoice

a.

Navigation: iSupplier Portal > Finance > Create invoices > Create invoices with a PO
Login with Shikha.sinha@oracle.com

R12 : White Paper on iSupplier Invoices In R12

Points to be noted:
PO Number: 6039
Enter PO number and click on Go.
The supplier will see only the POs created with site as Washington as per the access given at
time of registration
User can check the Quantity ordered, Quantity Received and Quantity Invoiced before he decides
to proceed further.

b. Select the line to be billed and click on Next

c.

User will now come to the Invoice creation page where they can enter below details:

Points to be noted:
Enter the invoice number field. Invoice number is 6039-1
The invoice date will default to System date. Can be changed if required
From Invoice type User can chose Invoice or Credit memo.
Verify the Remit to Details and change if required.
The Remit to LOV will show only Washington as per the settings done at time of user
registration.

R12 : White Paper on iSupplier Invoices In R12

 Note the available quantity for billing is shown as only 60. This is because the invoice match
option was set to Receipt and a receipt was created only for 60 units.
User would not be allowed to bill for a quantity more than 60 units since the profile option
POS: Enable Over billing is set to No. If they try to bill for more than the available quantity
below error would be displayed:

d. In the same page enter the shipping and handling charges and click on Next

e.

The next page is the Manage tax page, which shows the tax related information.

Points to be noted
System will automatically calculate tax based on the tax rules defined and insert the tax line.
User can edit the tax amount if required. If tax amount is edited ensure to click on Calculate
button again so that changes get reflected.

R12 : White Paper on iSupplier Invoices In R12

f.

Verify the invoice summary section and then click Submit button:

g. User will get a confirmation message:

h. Invoice will get created automatically and can be seen in the invoice workbench.

Points to be noted:
This needs to be validated before making the payment to supplier.
Here approval is not required since the option Use Invoice Approval workflow is not enabled in the
Payables options for this operating unit.

R12 : White Paper on iSupplier Invoices In R12

Case3: Over billing using ISP

1. The supplier can create an invoice exceeding the available quantity if profile option POS: Enable Over
billing is set to Yes.
2. In below example the profile option POS: Enable Over billing is set to Yes and POS: Invoice Unit
Price Change for Quantity-Based Matches is set to Allow Increase and Decrease.
3. The tolerances set are 5% for Quantity Ordered/Received and 10% for Price. So any billing within
such tolerances will get validated.

4. Business Action: Supplier Creates the invoice

a.

Navigation: iSupplier Portal > Finance > Create invoices > Create invoices with a PO > Enter PO
number and chose the line to be billed as shown in previous case.
On the Create invoice page see below points:

R12 : White Paper on iSupplier Invoices In R12

Points to be noted:
In the Create invoice page user can edit the price and enter a quantity greater than available quantity.
Here the billed quantity is entered as 890 even though the available is only 880. The unit price has
been edited from 10 to 11.
The supplier will be able to create the invoice for any quantity; the validation process will place a hold
on the invoice depending on the tolerances set.

b. On submission the invoice gets created in invoice workbench.

Points to be noted:
Quantity received is 880, Tolerance is set to 5% and Quantity billed is 890 which is within the tolerance
range. Hence invoice gets validated without hold.
If the quantity billed was greater than 924 [880 + (880*5/100)] then the invoice would go on a Quantity
Received Hold.
This invoice is validated successfully since it is within the tolerance range.

R12 : White Paper on iSupplier Invoices In R12

Case4: Creation of Credit Memo in ISP

The supplier can create a credit memo also from the iSupplier Portal in case of quantity or price differences
1. Business Action: Supplier will create a Credit Memo
Navigation: iSupplier Portal > Finance > Create invoices > Create invoices with a PO > Enter PO >
Select line to be billed and navigate to Create invoice page

Points to be noted
Chose Remit to Site, Enter invoice number
The invoice type will be chosen as Credit Memo.
2. Enter the line details as shown below and click on Next:

Points to be noted:
The quantity billed/amount must be negative in case of Credit Memo. In case the amount is not negative
below error will be displayed:

R12 : White Paper on iSupplier Invoices In R12

3. The next page is the Tax Details page. User should verify tax details and click on Next:

4. Verify the invoice summary on last page and click on Submit:

5. Once this is submitted the Credit Memo will get created in Invoice workbench. It will go for
validation and approval before it can be paid.

R12 : White Paper on iSupplier Invoices In R12

Business Flow 2
Creation of Non Purchase Order Matched Invoices
1. Mandatory Setup for NPO invoice:
It is mandatory to have an AME setup for Non PO invoices created from iSupplier portal.
Even if the Allow Approval workflow option in Payables options is set to No a valid approver has to
be derived for Non PO invoices created from iSupplier source.
If system cannot derive a valid approver for a NPO invoice created from iSupplier then the approval
status of such invoice in the AP base tables would be set to Rejected. Such invoice cannot be paid.
Approval is made mandatory so that the approver will check the invoice details and also enter the
accounting information for the invoice. The suppliers will not be aware of the accounts to be used for
an invoice and hence the approver is expected to populate the same before approving the invoice.
2. Steps to create the NPO Invoice
Business Action: Supplier Creates the invoice
a.

Navigation: iSupplier Portal > Finance > Create invoices > Create invoices without a PO

b. On the Invoice page user can enter below details:

Points to be noted:
Chose the Remit to address This is the address at which the user needs payment for invoice. Again
this will be restricted to the sites which the user has access to as per the setup explained above.
Enter Invoice number Misc1
Invoice date will default to current date.
R12 : White Paper on iSupplier Invoices In R12

 Enter the currency

Chose customer tax payer ID This is used to derive the legal entity in which invoice has to be
created.
If the supplier has a site enabled as primary pay site then this value will automatically default.
Requestor Email/First name and last name It is mandatory to enter your requestor email address or
First name and Last name. This is entered so that AME can ascertain the applicable rules for an
invoice.
c.

On the same page user will also enter the Item and Shipping details:

Points to be noted:
Enter your item line description, amount.
Choose the expense. Enter explanation
Enter miscellaneous/freight line details.
d. Click on Next button, This will lead you to the Manage Tax page:

Points to be noted:
Tax will get automatically calculated on transactions as per applicable tax rules

R12 : White Paper on iSupplier Invoices In R12

 A manual tax line cannot be entered for iSupplier invoice. In R12 taxes have tax regimes, taxes, statuses,
rates and jurisdictions that a supplier (the user of iSupplier Portal) would have no way of knowing so they
could enter a tax line manually.

e. This will lead to the Summary page showing a snapshot of all lines present in the invoice:
Review details and click on Submit button to create this invoice.

f.

On submission a confirmation page is displayed:

R12 : White Paper on iSupplier Invoices In R12

g. The invoice will now be created automatically. Note that the approval status is Initiated.

Points to be noted:
The invoice type for Non PO invoice created from ISP will be Standard Invoice Request
Note that the button All Distributions is disabled. No payables user can modify the distribution
account/amount from here. It has to be done by the approver in the approval notification.

h. The approver will get a notification for approval of invoice. Approver should do below steps to
approve the invoice.

R12 : White Paper on iSupplier Invoices In R12

i.

Click on the subject line to go to the approval notification page:

j.

Click on View Additional Invoice details:

Enter the distribution account for both the lines

Then click on Approve button

R12 : White Paper on iSupplier Invoices In R12

k. Once approved the approval status of invoice would change to Workflow approved. On validation
the invoice will be ready for payment.

R12 : White Paper on iSupplier Invoices In R12

View Invoices and Payments in iSupplier portal

View Invoices
Click on View Invoices tab to see the invoices created for the supplier.
Enter the search criteria required.
Users can see all invoices created for the criteria given irrespective of the source of invoice creation.
The invoices will be restricted to the supplier site to which the user has access.
The data can be exported to .csv format by clicking on Export button

View Payments
Click on View Payments to see any payment done for the supplier. Enter the required search criteria.
Users will see the payments done to supplier with current status.
The data can be exported to .csv format by clicking on Export button

R12 : White Paper on iSupplier Invoices In R12