Master the foundational configurations of Oracle Accounts Payable (AP) in R12 & Fusion.
Oracle Accounts Payable (AP) is a cornerstone financial module. Correct setup of Financials Options, Payables Options, Payment Terms, and Banks is absolutely critical before any invoices can be entered or payments made. This guide covers the essential configuration steps required to get the AP module up and running.
The GL Chart of Accounts must be defined as AP requires GL accounts for liabilities and expenses.
A Primary Ledger must be created and assigned to the Operating Unit.
The Operating Unit must exist to link AP transactions to a specific business entity.
Ensure the periods are open in both GL and AP to allow for transaction entry and accounting.
Functional Consultant
Functional Consultant
Functional Consultant
Cash Management Consultant
Actor: Functional Consultant | Module: Oracle Payables
Financials Options define the default accounting, tax, and reporting rules for your Operating Unit. This setup is shared between Payables, Purchasing, and Assets.
Example: Set the default "Liability Account" and "Prepayment Account" which will default onto every new supplier created in this OU.
Navigation Path:
Setup and Maintenance > Manage Common Options for Payables and Procurement
Key Actions:
Set Liability, Expense, and Prepayment accounts along with default numbering.
Actor: Functional Consultant | Module: Oracle Payables
Payables Options control the behavior of the AP module itself. You define rules for invoice entry, matching (2-way, 3-way, 4-way), payment approvals, and expense reports.
Example: Enable "Allow Document Category Override" and set the default "Payment Term" to Net 30 for all AP invoices.
Navigation Path:
Setup and Maintenance > Manage Invoice Options / Manage Payment Options
Key Actions:
In Fusion, Invoice Options and Payment Options are split into two separate tasks.
Actor: Functional Consultant | Module: Oracle Payables
Payment Terms determine the due date and discount date of an invoice. You can define multiple installments, discounts for early payment, and cutoff days.
Example: Create a term "2/10 Net 30" which means a 2% discount is applied if paid within 10 days, otherwise the full amount is due in 30 days.
Navigation Path:
Setup and Maintenance > Manage Payment Terms
Key Actions:
Setup is almost identical to R12, defining dates, days, and percentages.
Actor: Cash Management Consultant | Module: Oracle Cash Management / Payables
To pay suppliers, you must define Internal Banks, Bank Branches, and Bank Accounts. These are managed centrally in the Cash Management module but are used extensively by AP for payments.
Example: Create a bank account named "Citi Operating Account" and link it to the "US Operating Unit" to process AP checks and EFT payments.
Navigation Path:
Setup and Maintenance > Manage Bank Accounts
Key Actions:
Create Bank, Branch, and Account in Legal Entity context. Enable for Payables.
Understand how AP setups impact the full Procure-to-Pay lifecycle.
Read GuideLearn how to configure MOAC to access multiple OUs from one AP responsibility.
Read GuideDiscover how Payables transactions flow into the General Ledger via SLA.
Read Guide