Pages

Search This Blog

Saturday, April 24, 2010

Zero Payment -Payments

Here we will be discussing about,
What is "Zero Payament" payment
Why is "Zero Payment" payment required
What are the required setups for "Zero Payment" payments in Oracle payables
How to do "Zero Payment" payments in Oracle payables

What is "Zero Payment" Payment?

As the name suggests, a "Zero Payment" payment is a payment having value 0 (zero) i.e. the payment can be 0 USD / EUR / INR etc depending on the payment currency.

Why is "Zero Payment" payment required?

There can be various reasons to make a "Zero payment". Few possibles reasons are,
--Legal requirements of the country
There can be a legal requirements in countries (like EMEA) where business is being carried out / transactions are booked, wherein you just can not cancel an accounted invoice. To cancel such invoices you need to generate an internal DEBIT memo or CREDIT memo (for paid invoices) and then apply to the invoice which needs to be canceled. In such case the original invoice is not canceled and you are just making ZERO liability to the supplier for the invoice. By doing so, the invoice remains unpaid and also the accounting transaction does not flow through all the events like payment, cash clearing. For all invoices the transactions need to flow through all the events as mentioned above if it has not been canceled.
In order to acheive that you make a "Zero Payment" payment just to record the transaction. This payment would not go to the supplier.

--Accounting segment values getting deactivated
If any of the charge account segment is deactivated (like cost center / natural account etc) then an accounted invoice can not be canceled and the only alternative to make the liability zero is to create a debit memo or CREDIT memo (for paid invoices) and then apply to the invoice which needs to be canceled as mentioned above.

Below video shows,
--Required setup to be done in Oracle for creating "Zero Payment" payments
--Creating a "Zero Payment" payment

1 comment:

  1. Regards
    Sridevi Koduru (Senior Oracle Apps Trainer Oracleappstechnical.com)
    LinkedIn profile - https://in.linkedin.com/in/sridevi-koduru-9b876a8b
    Please Contact for One to One Online Training on Oracle Apps Technical, Financials, SCM, SQL, PL/SQL, D2K at training@oracleappstechnical.com | +91 - 9581017828.

    ReplyDelete

Followers

Contributors