R12 Payment

[suryabpc]

Version R12/11i? = R12
Instance PROD/TEST/VIS? = PROD
Module? = AP
OS

Hi All.

We have 2 operating units and entered an invoice in OU1, all banks are defined in OU2. How to make the payment for the invoice which is in OU1 from OU2 Bank and what are the setups required for this.

Thanks in Advance.
Surya

[tgs100]

To my knowledge, you can't make payment from OU2 bank accounts for OU1 invoices. Your requirement defeats the concept of OU. You should create the bank accounts in OU1. If you have intercompany segment in your COA, then you can use this segment to capture this information.

Cheers,
Saravanan

[suryabpc]

Thanks Saravaran,

As i heard, in R12, banks are LE level and we can make payment across all OU's in LE. here my all banks are in OU1 only. But they wanted to make payment for OU2 invoices. How to solve this problem.

Thanks,
Surya

[tgs100]

In R12, banks are owned by Legal entities and access is granted for OUs. If a bank account is not given access to a OU, then you can not use that bank account in that particular OU.

You should give bank account access to OU1 and OU2. You can also have the same GL account codes. System will automatically create the intracompany/inter company accounts. You should have created the intracompany/Intercompany accounts.

For Example, You have Invoice from OU1 and Bank Account in OU2.

Give Bank account access to both OUs with account combination like OU2-BANK ACCOUNT (for both OUs) - Same account combination for both OUs

When you create invoice in OU1, the accounting entry will be
OU1-Expense - Dr
OU1-Liability - Cr

When you make payment, the accounting entry will be
OU1-Liability - Dr
<b>OU2-BANK ACCOUNT - Cr</b>

When do create accounting, you will get one more intracompany/intercompany accounting entry like
OU2-Receivable from OU1 Account - Dr
OU1-Payable to OU2 Account - Cr

Cheers,
Saravanan