Oracle ERP Cloud Evaluated Receipt Settlements (ERS)

Oracle ERP Cloud Evaluated Receipt Settlements (ERS)

In the realm of automated invoicing, it might come across the term “Payment on Receipt Auto Invoice Program,” which is alternatively referred to as “Evaluated Receipt Settlement” (ERS) and “Self-Billing.” This innovative system leverages the details from both the receipt and purchase order to generate invoices, effectively eradicating the need for redundant manual data input. By doing so, it not only streamlines the invoicing process, but also guarantees precision and punctuality in data handling.

ERS, often known as the “Pay on Receipt” program, stands as a widely adopted and standardized approach for the automated creation of payable invoices based on purchase order receipts. This method brings a significant level of automation to the invoicing procedure, significantly reducing the workload associated with manual data entry.


Setups for Pay on Receipt in the Cloud

  • Enable Pay on Receipt in the Purchasing Tab of the Supplier Site Level and Invoice Summery level should be Receipt
 Pay on Receipt Check box enabled in Supplier Site Level - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 1. Pay on Receipt Check box enabled in Supplier Site Level


  • Pay on Receipt Privilege should be added in any assigned Custom Role (If not Create Custom)
Role and Privilege - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 2. Role and Privilege


  • Schedule the Send Pay on Receipt Auto invoice program or run this program manually too with the below Parameter.
  • Transaction Source: ERS (Evaluated Receipt Settlement)
Transaction Source in Schedule Program - oracle-ERP-cloud-evaluated-receipt-settlements-ers

Fig 3. Transaction Source in Schedule Programme


Functional Workflow of ERS Invoice

  • Purchase Order Creation with Pay on Receipt Enabled Supplier
  • Receipt Creation
  • Run the ‘Send Pay on Receipt’ Schedule Program with the source as ERS


Purchase Order Creation

  • Navigation: Procurement > Purchase Orders> Create Order
Create Purchase Order Navigation - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 4. Create Purchase Order Navigation


  • Select the Supplier which has pay-on receipt enabled in the Supplier site level
  • Select the currency and Buyer details then click on create
Create Purchase Order Screen - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 5. Create Purchase Order Navigation


  • Whenever Pay on receipt is in the supplier site level, it will default in the PO header Level
Pay on Receipt Check box in PO Header - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 6. Pay on Receipt Check box in PO Header


  • Create Line details by clicking on the + icon
  • Enter the line details: item, Description, UOM, Category, Quantity, Price, Location
PO Line Details - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 7. PO Line Details


  • Provide the Requested and Promised Delivery Dates in the Schedules Tab
PO Schedule Details - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 8. PO Schedule Details


  • Distributions will be populated once click on Save
PO Distributions Details - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 9. PO Distributions Details


  • Go to Actions and Validate then Submit the Document for Approval
Create PO Confirmation Details - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 10. Create PO Confirmation Details


  • Receipt Creation
  • Navigation: Supply chain Execution > Inventory Management > Receipts > Receive Expected Shipments
PO Receipt Navigation - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 11. PO Receipt Navigation


  • Provide the purchase order number and click on Search
  • Select the line and click on Receive
Receipt Creation Details - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 12. Receipt Creation Details


  • Provide the received quantity which has received and sub-inventory
  • Click on Create Receipt
Received quantity & Subinventory Details - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 13. Received quantity and subinventory Details


  • Provide the shipment details/waybill details and click on submit
Receipt Submission Screen - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 14. Receipt Submission Screen


Receipt creation confirmation - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 15. Receipt creation confirmation


  • Run the Send Pay on Receipt Schedule Process
  • Navigation: Go to Tools > Under Scheduled Processes > Choose Schedule New Process
Navigation for Scheduling the Job - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 16. Navigation for Scheduling the Job


  • Type: Job
  • Name: Send Pay on Receipt
  • Transaction Source: Evaluated Receipt Settlement
  • Receipt Number (want to create any specific Receipt)
  • Submit
Send Pay on Receipt Schedule process Details - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 17. Send Pay on Receipt Schedule process Details


Send Pay on Receipt Job Confirmation and Process ID details - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 18. Send Pay on Receipt Job Confirmation and Process ID details


  • Three processes will run, one of which is ‘Send Pay on Receipt
Schedule Process Status - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 19. Schedule Process Status


  • See the generated invoices > Select the Import Payables Invoices Report >Republish in PDF Format
Import Payable Invoice Report Export Options - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 20. Import Payable Invoice Report Export Options


ERS invoice Details - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 21. ERS invoice Details


  • Check the full life cycle at the document level
  • Invoice Status will be Not validated
PO Life Cycle Details - oracle-erp-cloud-evaluated-receipt-settlements-ers

Fig 22. PO Life Cycle Details


Roles and Privileges

  • Purchase Order creation- Buyer Role
  • Receiving- Receiving Agent
  • Send Pay on Receipt Process- Pay on Receipt Privilege



Below are the limitations of  Oracle ERP Cloud Evaluated Receipt Settlements (ERS):

  • As per the ERS method, Only one invoice per receipt per supplier pay site will be created when selecting Pay on the option to Receipt
  • The lines of the AP invoice will depend upon the number of items received in the Purchase Receipt


Business Benefits

Here are the compelling benefits that Oracle ERP Cloud Evaluated Receipt Settlements (ERS) offers:

  • Streamlining Operations: Implementing the ERS Process leads to the elimination of redundant manual data entry, ensuring that data is processed accurately and promptly.
  • Effortless Invoice Creation: With this system in place, you can effortlessly generate invoices with multiple items and distribution lines, all while automatically factoring in sales tax.
  • Simplified Cost Calculation: The invoice amount is determined by a straightforward multiplication of the received quantity by the unit price specified in the purchase order.
  • Automated Efficiency: Invoice payment terms are conveniently pre-populated from the purchase order payment terms, and payment currency defaults from the Supplier site. Additionally, sales tax calculations are seamlessly handled based on the tax codes assigned to each purchase order line.


Author: Srinivas Mamidi, Oracle Cloud SCM Functional Consultant

Oracle ERP Cloud Partner

Simplify Processes, Improve Productivity, & Increase ROI with the future-proof & AI-driven Oracle ERP Cloud.

Read More