R12: Payables Invoice Holds

Why are Invoice Holds applied?

The process of invoice validation checks the PO matching, tax on invoice, period status (open or closed), exchange rate, and distribution information for invoices entered.

In addition, Invoice Validation checks,

i.                     The supplier site to determine which invoice tolerance template to use

ii.                   If no invoice tolerance is specified, tolerance checking is not performed

iii.                  If an invoice tolerance template is specified, invoice validation will check against the specific invoice tolerances stored in the Invoice tolerances window to determine if the invoice falls within the defined tolerances and automatically applied holds to exception invoices.

If an invoice has a hold, you can release the hold by correcting the exception that caused invoice validation to apply the hold by updating the invoice or the PO, or changing the invoice tolerances. Then resubmit Invoice Validation to release the holds.

In addition, in the invoice holds tab, you can manually release certain invoice holds, even if you have not resolved the matching error condition.

How to Remove Invoice Holds?

Account Holds

Payables uses holds with this type to identify invoices with invalid or incorrect accounts. An invalid account prevents payment of an invoice and prevents Payables from creating accounting entries for an invoice or payment.

• Dist Acct Invalid:
  Invoice distribution distributed to invalid account. To release the holds you must correct account and resubmit invoice validation.

• ERV Acct Invalid:
  Payables created invalid Exchange Rate Variance account for invoice distribution. Used only if you enable Automatic Offsets. To release the holds you must correct account and resubmit invoice validation.

For both account holds accounting is not allowed and user cannot release these holds manually.

Funds Holds

Payables applies these holds only if you use budgetary control and if either there are insufficient funds for an invoice distribution or Payables cannot perform funds checking.

• Funds Check:
  This hold can be caused by 3 reasons:
• No budget exists for the account in the accounting period on the invoice. To remove it create a budget in General Ledger and resubmit invoice validation.
• Invoice account is not equal to the purchase order account. Enter different account for
  invoice distribution and resubmit invoice validation.
• Detail account not assigned to a parent account. Assign detail account to parent account and
  resubmit invoice validation.

For this hold accounting is not allowed and user cannot release these holds manually.

• Insufficient Funds:
  Invoice distribution amount is more than the funds available. There are different ways to remove this hold:
• Enter different account for invoice distribution and resubmit invoice validation.
• Transfer funds to account budget and resubmit invoice validation.
• In General Ledger, enable a user to override funds control and user resubmit invoice
  validation.
• Manually release in the invoice holds tab.

For this hold accounting is not allowed.

Invoice Holds

Payables applies holds with this type to invoices. You can manually apply as many of these holds to an invoice as you require when you enter or adjust the invoice.

• Amount:
  Invoice amount is more than the invoice amount limit you specify for a supplier site. There are different ways to remove this hold:
• Adjust invoice amount and resubmit invoice validation.
• Change invoice amount limit option for supplier site and resubmit invoice validation.
• Manually release in the invoice holds tab.

For this hold accounting is allowed.

• Invalid PO:
  You apply this hold when a supplier does not provide a valid purchase order number for matching.
  Manually release it in the Invoice Holds tab. (Note: you can submit the Invalid PO Supplier Notice to request a valid PO from the supplier).

For this hold accounting is not allowed.

• Natural Account Tax:
  You assigned a tax code to an expense or asset account in the Tax Options window, and you enabled the Enforce Tax From Account Payables option. The tax code on the invoice does not
  match the tax code assigned to the account. There are different ways to remove this hold:
• Change the tax code on the invoice to match the tax code assigned to the account.
• Disable the Enforce Tax From Account in E-Business Tax Defaults and Controls: Configuration Owner Tax Options tab.
• In the Tax Options window in General Ledger, change the tax code association.
• Manually release the hold in the invoice holds tab.

For this hold accounting is not allowed.

• Supplier:
  You enabled the hold unvalidated invoices option for a supplier site in the Suppliers Sites window.
  You can manually release in the Invoice Holds tab. To prevent future Supplier holds, disable
  the hold unvalidated invoices supplier site option.

For this hold accounting is allowed.

• Withholding Tax:
  Payables cannot perform automatic withholding of tax. Correct error that caused automatic
  withholding of tax to fail. For example, you may need to set up a period in the withholding
  tax special calendar.
  
  For this hold accounting is not allowed and user cannot release these holds manually.

Matching Holds

Payables applies holds with this type to an invoice if the invoice violates predefined matching criteria.

• AMT ORD:
  Amount Billed is greater than Amount Ordered * (1 + % Ordered tolerance). There are different ways to remove this hold:
• Correct PO or invoice and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Holds tab.

For this hold accounting is allowed.

• AMT REC:
  Amount Billed is greater than Amount Received * (1 + % Received tolerance). There are different ways to remove this hold:
• Correct PO or invoice and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Holds tab.

For this hold accounting is allowed.

• MAX AMT ORD:
  Amount Billed is greater than the sum of Amount Ordered and Maximum Amount Ordered
  Tolerance Amount. There are different ways to remove this hold:
• Correct PO or invoice and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Holds tab.

For this hold accounting is allowed.

• MAX AMT REC:
  Amount Billed is greater than the sum of Amount Received and Maximum Amount Received
  Tolerance Amount. There are different ways to remove this hold:
• Correct PO or invoice and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Holds tab.

For this hold accounting is allowed.

• MILESTONE:
  Quantity or Amount Billed is not equal to the total Quantity or Amount Ordered. This is a System hold - Correct PO or invoice and resubmit Invoice Validation or release the hold manually.

For this hold accounting is allowed.

• Can't Close PO:
  Online receipt accrual enabled in Purchasing and Purchase order quantity delivered is not equal to
  the quantity received. Resolve purchase order delivery information in Purchasing and resubmit
  Invoice Validation or release the hold manually. 

For this hold accounting is allowed.

• Can't Try Final Close:
  Invoice (final matched to purchase order) placed on hold during Invoice Validation. Release hold that caused invoice to be placed on hold and resubmit Invoice Validation.

For this hold accounting is not allowed and user cannot release it manually.

• Final Matching:
  Invoice is matched to a purchase order that was final matched by another invoice. Reverse the distribution and resubmit Invoice Validation to remove the Final Matching hold.
  
  For this hold accounting is not allowed and user cannot release it manually.

• Matching Required:
  You have enabled the Hold Unmatched Invoices option in the Supplier Sites window, and
  the invoice is not matched to purchase order or receipt. Match invoice to purchase order or
  receipt and resubmit Invoice Validation or release the hold manually.
  
  For this hold accounting is allowed.

• Max Qty Ord:
  Quantity billed more than the sum of (quantity ordered plus the tolerance amount). There are different ways to remove this hold:
• Correct PO or invoice and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Invoice Holds tab.

For this hold accounting is allowed.

• Max Qty Rec:
  Quantity billed is more than the sum of (quantity received plus the tolerance amount). There are different ways to remove this hold:
• Correct invoice or receipt and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Invoice Holds tab.

For this hold accounting is allowed.

• Max Rate Amount:
  Exchange rate variance exceeds amount tolerance limit. There are different ways to remove this hold:
• Correct PO or invoice and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Invoice Holds tab.

For this hold accounting is allowed.

• Max Ship Amount:
  Variance between invoice and shipment amount exceeds amount tolerance limit. There are different ways to remove this hold:
• Correct PO or invoice and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Invoice Holds tab.

For this hold accounting is allowed.

• Max Total Amount:
  Sum of invoice and exchange rate variances exceeds amount tolerance limit. There are different ways to remove this hold:
• Correct PO or invoice and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Invoice Holds tab.

For this hold accounting is allowed.

• Price:
  Weighted average price of all distributions on the matched invoice and all price corrections related to the invoice is more than [purchase order unit price (1 plus % tolerance)]. There are different ways to remove this hold:
• Correct PO, invoice, or price corrections and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Invoice Holds tab.

For this hold accounting is allowed.

• Qty Ord:
  Quantity billed is more than [quantity ordered (1 plus % tolerance)]. There are different ways to remove this hold:
• Correct PO or invoice and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Invoice Holds tab.

For this hold accounting is allowed.

• Qty Rec:
  Quantity billed is more than [quantity received (1 plus % tolerance)]. There are different ways to remove this hold:
• Enter receipt in Purchasing and resubmit Invoice Validation.
• Adjust tolerance and resubmit Invoice Validation.
• Manually release in the Invoice Holds tab.

For this hold accounting is allowed.

• Quality:
  Quantity billed is more than quantity accepted. Enter acceptance in Purchasing and resubmit
  Invoice Validation or release the hold manually. 

For this hold accounting is allowed.

• Rec Exception:
  Purchase order receipt indicates exception. Please note this hold is not set at invoice validation time. It's created manually in Purchasing. You can release it manually in the Invoice Holds tab.

For this hold accounting is allowed.

• Tax Difference:
  Invoice tax code value is not equal to the purchase order tax code. Invoice tax code value =
  purchase order tax code value, but taxable flag set to No for PO shipments. Correct PO or
  invoice and resubmit Invoice Validation or release the hold manually.
  
  For this hold accounting is allowed.

Variance Holds

Payables applies holds with this type as follows. 

Payables applies the Dist Variance hold to an invoice if the total of the invoice distributions does not equal the invoice amount.
Payables applies the Tax Variance and Tax Amount Range holds by verifying that the invoice's distribution tax amount matches the calculated tax for the Tax Code within the amount tolerance or percentage tolerance or both that you define.
If the variance exceeds a percentage tolerance, Payables applies the Tax Variance hold.
If the variance exceeds an amount tolerance, Payables applies the Tax Amount Range hold.

• Dist Variance:
  Invoice line amount is not equal to the related sum of invoice distribution amounts. Adjust invoice distributions or invoice amount and resubmit Invoice Validation. If adjustment is not possible reverse distribution line and re-enter a new one or discard line.

For this hold accounting is not allowed and user cannot release it manually.

• Line Variance:
  Sum of invoice line amounts is not equal to the invoice header amount. Add an invoice line, adjust invoice lines or invoice amount and resubmit Invoice Validation. If adjustment is not possible discard line and re-enter a new one.

For this hold accounting is not allowed and user cannot release it manually.

• Prepaid Amount:
  The prepaid amount including tax exceeds the invoice amount. Unapply the prepayment and apply a lower amount. 

For this hold accounting is allowed but user cannot release it manually.

• Tax Amount Range:
  Tax amount is less than [(tax rate taxable dist line total) - tolerance amount] or Tax amount
  is more than [(tax rate taxable dist line total) + tolerance amount]. There are different ways to remove this hold:
• Adjust tax rate for tax code and resubmit Invoice Validation.
• Change tax code or tax group on invoice distributions and resubmit Invoice Validation.
• Adjust tax tolerance and resubmit Invoice Validation.
• Manually release in the Invoice Holds tab.

For this hold accounting is allowed.

• Tax Variance:
  Tax amount is less than [(tax rate taxable dist line total) (1 - % tolerance)] or Tax amount
  is more than [(tax rate taxable dist line total) (1 + % tolerance)]. There are different ways to remove this hold:
• Adjust tax rate for tax code and resubmit Invoice Validation.
• Change tax code values on invoice distributions and resubmit Invoice Validation.
• Adjust tax tolerance and resubmit Invoice Validation.
• Manually release in the Invoice Holds tab.

For this hold accounting is allowed.

Miscellaneous Holds

Miscellaneous predefined Hold that Payables uses to apply holds to invoices.

• No Rate:
  No exchange rate for foreign currency invoice. Enter exchange rate and resubmit Invoice
  Validation or submit AutoRate and resubmit Invoice Validation.

For this hold accounting is not allowed and user cannot release it manually.

• All Payments:
  You enabled the Hold All Payments option for the invoice's supplier site. Disable the Hold All
  Payments option in the Supplier Sites window and Payables allows you to select the supplier site's invoices for payment if they are validated  (and approved, if the invoice requires invoice approval) or create a manual payment for any of the held invoices.

For this hold accounting is allowed.

• Supplier:
  Hold all unvalidated invoices for a supplier. Remove the hold in the Invoice Holds tab, or use the Actions button. To disable completely, disable the Hold Unvalidated Invoices option at the supplier site.
  
  For this hold accounting is allowed and user can release these holds manually.