Financial Options

Financial Options

Use the Financials Options window to define the options and defaults that you use for
your Oracle Financial Application(s). Values you enter in this window are shared by
Oracle Payables, Oracle Purchasing, and Oracle Assets. You can define defaults in this
window to simplify supplier entry, requisition entry, purchase order entry, invoice
entry, and automatic payments.

Financial Option Regions

• Accounting
• Encumbrance
• Human Resource
• Supplier
• Tax

1,1, Financial Options - Accounting

Liability. Payables assigns this account as the default Liability Account for all new suppliers you enter. You can override this value during supplier entry. If you use Accrual Basis accounting, then the Liability Account for an invoice determines the liability account(s) charged when you create accounting entries for invoices.

Prepayment. The Prepayment account and description for a supplier site's invoices. The Financials option value defaults to new suppliers, and the supplier value defaults to new supplier sites.

Future Dated Payment. If you use future dated payments, then enter a value for Future Dated Payment account. This value defaults to all new suppliers and new bank accounts. The supplier value defaults to all new supplier sites. The bank account value defaults to new payment documents.

Discount Taken. If you choose to distribute your discounts to the system Discount Taken Account, Payables uses this account to record the discounts you take on payments

PO Rate Variance Gain/Loss. Payables uses these accounts to record the exchange rate variance gains/losses for your inventory items. The variance is calculated between the invoice and either the purchase order or the receipt, depending on how you matched the invoice. These accounts are not used to record variances for your expense items. Any exchange rate variance for your expense items is recorded to the charge account of the purchase order.

Expenses Clearing. This account is optional when you use the Company Pay payment option of Oracle Internet Expenses. Payables uses this as a temporary account to record credit card transaction activity

Miscellaneous. Used only when importing invoices submitted via iSupplier Portal or XML Gateway.

Retainage:Used for the amounts or percentages of payments that are withheld until work under a contract is completed and accepted


Supplier- Purchasing

The options you define in this region, except for Inventory Organization, are used as default values for the Purchasing region of the Suppliers window. The supplier values default to new supplier sites for the supplier, which default to new purchasing documents for the supplier site.

Financial Options-Encumbrance

Financial Options-Tax

The options you enter in this region control VAT registration for tax purposes.

• Member State: The location of your company or organization. 
• VAT Registration Number: The value added tax (VAT) registration number for your organization. Your organization is assigned a VAT Registration Number if you register to pay VAT.

Financials Options-Human Resource

Business Group. Enter the name of the business group that you want to associate with
Purchasing. If you use Purchasing jointly with Oracle Human Resources, you must
reference the business group that you define in Oracle Human Resources. If you use
Purchasing without Human Resources, you can use the default value. The default for
this field is the Human Resources default of Setup Business Group.
The business group determines which employees you can use in Purchasing. In
Purchasing, you can see only the employees in this business group.

Expense Reimbursement Address. Select the default address you want to use on
payments for employee expense reports: Home or Office. The system uses this default
for each new employee you enter. You can override this default during employee entry
or expense report entry.

Use Approval Hierarchies. Enable this option to use positions and position hierarchies
to determine approval paths for your documents within Purchasing. Disable this option
of you want approval paths based on the supervisor structure.

Employee Numbering Method. You can enter your employee numbers manually or let
the system generate sequential employee numbers.