- Payables and Expenses
- Invoice Creation for Remitting Escheated Payments to the Escheatment Authority
Use the escheatment process in Payables to transfer the payment amounts of unclaimed checks issued to suppliers and employees to the appropriate local authority. The escheatment process includes all checks issued to suppliers and employees that were not cleared within a specified time period. The previous release supports the identification and selection of stale payments, initiating the escheatment processes, escheating the stale payment, and creating the related accounting transactions.
Business Benefit:
Escheatment is a legal process in which the government takes control of assets unclaimed for a long time. The state authority holds abandoned properties or dormant accounts for a limited period. It, thus, allows the owner, beneficiary, or legal heir to reclaim them. Proceeds from the sale of these assets go toward state funds. Failure to comply with state unclaimed property laws can allow the state to take legal actions against the holder in addition to charging high penalties. This features improves compliance with legal regulations by reporting unclaimed check payments which are not cashed in a specific time period and transfer such payments to the escheatment authority.
- Multiperiod Accounting Distribution Creation Using Transaction Account Definition
Use the Transaction Account Definition to automatically derive and assign the multiperiod accrual account to Payables invoices created through the various channels (electronic, IDR, supplier portal). The Transaction Account Definition uses account rules created in Subledger Accounting to default the multiperiod accrual account to invoices. This eliminates the manual account code entry during invoice creation and the account coding workflow process, and provides a review of distributions during the approval workflow.”
When invoices are created through the Payables Invoice Import process or when invoices are validated either online or through the Validate Payables Invoice process, transaction account definition (TAD) automatically derives the multiperiod accrual account combination, along with other expense account combinations, for invoice lines that are applicable for multiperiod accounting. Alternatively, manually select the required invoice lines and initiate the account derivation from the Create Invoice page.
The standard multiperiod accounting system has an inherent check on invoice lines to ensure that the user provides all three multiperiod accounting attributes (start date, end date, and multiperiod accrual account) or none. An error message is displayed to the user if partial values are entered. This check ensures the required data is available on the invoice to generate multiperiod accrual accounting. However, this check does restrict the use of TAD to default multiperiod accrual accounts, as it always forces the user to enter the multiperiod accrual account even before TAD can be invoked. The multiperiod accrual accounting standard behavior is modified as explained below to allow users to leverage TAD to default multiperiod accrual accounts. These changes are applicable only when the TAD is enabled.
Invoice Import Process:
For invoice lines related to multiperiod accrual accounting, the user needs to provide only the date fields, which are the start date and end date, and leave the multiperiod accrual account blank for TAD to default it. However, if TAD cannot derive the accrual account, the invoice is rejected.
Create Invoice page:
For invoice lines that are related to multiperiod accrual accounting, the user must enter only the date fields, which are the start date and end date. An error is displayed if user enters only one date of the two dates. Users can either enter the MPA accrual account manually or leave it blank for TAD to default it.
Distributions are not generated for invoice lines that have multiperiod accounting dates but not the multiperiod accrual account.
Invoice Validation process:
During invoice validation, TAD is invoked to default the multiperiod accrual account for all invoice lines that have multiperiod date information but not the multiperiod accrual account. Such invoice lines are placed on a “Multiperiod Accrual Account Required” hold if the multiperiod accrual account cannot be defaulted through TAD.
The “Multiperiod Accrual Account Required” hold is automatically released when the multiperiod accrual account is populated on the invoice line, either manually by the user or automatically by the TAD.
From the manage holds page, the user can review the errors, if any, raised by the sub-ledger accounting module during TAD-based account derivation.
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