Changes in 11i and R12 in P2P cycle

Procure to Pay: First let’s see what the heading itself means? Procure to Pay means Procuring Raw Materials required to manufacture the final or finished Goods to Paying the Supplier from whom the material was purchased. But this is not just two steps. It involves many steps. Let’s see the steps and Oracle Application involved in performing those steps.

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Oracle Purchasing: You enter Suppliers of different materials and products you want to purchase to manufacture a finished good that your organization plans to sell. Oracle Purchasing: You prepare a Request for Quotation (RFQ) and send it to different suppliers to get the best and/or economical price for the product. Oracle Purchasing: Suppliers sends their quotations and you upload those quotations in Oracle Purchasing to get the best three quotes and further to get the one best quote. Oracle Purchasing: You prepare a Purchase Order(PO) against the best RFQ to buy the goods from the supplier who quoted the suitable price and sends the PO to that supplier Oracle Purchasing: The supplier receives the confirmation of purchase from PO and ships the ordered goods. You receive the goods; enter Goods Received Note (GRN) in Oracle Purchasing. Oracle Inventory / Oracle Assets: It’s up to you whether you want to receive the goods at your head office or you Inventory directly. In either case you move the received goods to your different Raw Material Inventory from Oracle Purchasing to Oracle Inventory and the Item Count increases. If the item is Asset Type then it will move to Oracle Assets at the time of Invoice creation in Oracle Payables.

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Oracle General Ledger: Once you move the goods to Oracle Inventory, it sends the Material Accounting to Oracle General Ledger. Oracle Payables: After this the supplier sends you the invoice for the purchased goods and you Enter or Match the invoice against the PO from Oracle Purchasing in Oracle Payables. As said before, if the item is Asset in nature then it will move to Oracle Asset.

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Oracle General Ledger: When you enter the invoice it means that you have created a Liability against that supplier and also you have recorded the expense incurred or asset purchased. Oracle Payables sends the invoice accounting to Oracle General Ledger.

10. Oracle Payables: You pay the invoice and settle the Liability. 11. Oracle General Ledger: The liability is settled and your cash movement account is updated. 12. Oracle Cash Management: As you pay the invoice Oracle Payables sends the payment
information to Oracle Cash Management for Bank Reconciliation. Once reconciled, Oracle Cash Management sends the updated Bank/Cash accounting entry to Oracle General Ledger.

13. Oracle General Ledger: Your cash at bank is updated with actual balance. 14. Oracle Process Manufacturing(OPM) / Oracle Discrete Manufacturing(ODM): You start
the manufacturing of your final product. Both OPM or ODM requests the different raw materials from your inventory organizations and manufactures a finished good.

Navigation: Purchasing Vision Operations (USA) > Requisitions > Requisitions Choose the requisition type and enter the Item. Purchase requisitions are used for requesting material from suppliers. b) Purchase requisition: Unlike Internal requisitions. At any time the status of requisition can be checked using the Requisition summary window. We can also check the Action History of requisition (it will show details about who has submitted. Navigation: Requisitions > Requisition Summary Enter requisition number and click on the find button. approved and cancelled the requisitions) as below: Navigation: Tools menu > Action History. Underlying Tables: PO_REQUISITION_HEADERS_ALL . The status will now be updated to In Process . Save the work.The workflow then will send an Approval notification to the concerned person (derived based on hierarchy used Position or Supervisor hierarchy) using which he can Approve or Reject the requisition. Enter the Charge Account. As the finished good is prepared. Now the final product is ready to be sold in the market. Price details in the Lines tab. 1) Create Requisition 11i Requisition is nothing but a formal request to buy something (like Inventory material. Click the Distributions button. Oracle Inventory receives the finished good in Finished Good Store and increase the Item Count. There are two types of requisitions: a) Internal Requisition: Internal requisitions provide the mechanism for requesting and transferring material from one inventory to other inventory. In Source Details tab. quantity. Only an employee can create one. And now the Approve button is highlighted. The status of the requisition will now be Incomplete. Oracle Inventory: As the raw materials are issued to OPM and ODM the inventory sends the issuing material accounting to General Ledger and decreases the Item Count from the Raw Material Store. The requisition needs to be approved first before proceeding further by the concerned authority. specify the Buyer name. office supplies etc) needed for the enterprise.15. Submit this requisition for Approval by clicking on the Approve button.

Without changing Responsibility and without closing windows buyers will now be able to view consolidated requisition demand spanning multiple operating units. Note: 1. for the suppliers it captures the fact that the given party_id is of type SUPPLIER. HZ_PARTIES : This is the master table for suppliers. default Payment method Code for this supplier. Here for our example purpose. I kept the submitted and approved person has same and hence it shows the status as approved. To see the approval status. . From R12 onwards supplier have been moved in to the TCA Data Model. 2. 3. Suppliers into TCA . 4.PO_REQUISITION_LINES_ALL PO_REQ_DISTRIBUTIONS_ALL R12 Click on Distributions to View the charge Account. Save and Submit for Approval Check the status of the Requisition. Who bears the bank charges when lets say SWIFT payment is made? Note : This information can be set up at the supplier level or supplier site level. credit scoring details of Supplier or the Number of Employees working in Supplier Organization.Architecture in R12 : Prior to R12 the suppliers information is stored in PO_VENDORS. IBY_EXTERNAL_PAYEES_ALL : It captures payment related details of the supplier. please follow the below navigation. for example. The Supplier Details in R12 : Many changes were happened in supplier details in R12. Base tables are same as 11i but more than 15 extra columns in R12 for the table PO_REQUISTION_HEADERS_ALL. Operating Unit extra field in the R12 forms due to MOAC. Query for the Requisition Number and click Find. The operating units that buyers can transact on behalf of will be controlled by the security profile associated with their responsibilities. HZ_PARTY_USG_ASSIGNMENTS : This table stores the Party Usages. PO_REQUISTION_LINES_ALL and PO_REQ_DISTRIBUTIONS_ALL for tax etc. Like how should the supplier's remittance advice must be sent. HZ_ORGANIZATION_PROFILES : This table captures additional Supplier information. for example.

and control information for purchase orders. Similarly. POS_SUPPLIER_MAPPINGS : This table holds the mapping between the AP_SUPPLIERS. 4. date you want your .VENDOR_ID and HZ_PARTIES. Click Terms to enter terms. price etc. that joins AP_SUPPLIERS & HZ_PARTIES. shipto organization and location. Click Currencybutton to enter and change currency information for purchase orders. PO_VENDORS : PO_VENDORS is a view in R12. Click Shipments button to enter multiple shipments for standard and planned purchase order lines Purchase order shipment specifies the quantity. Planned PO: A Planned PO is a longterm agreement committing to buy items or services from a single source. conditions. It stores the supplier specific attributes.AP_SUPPLIERS : This is another master table that replaces the PO_VENDORS table. In the Lines tab.PARTY_ID. but you do not know the detail of your delivery schedules. Contract agreement: Contract purchase agreements are created with your suppliers to agree on specific terms and conditions without indicating the goods and services that you will be purchasing Navigation for creating a standard PO: Purchase Orders > Purchase Orders Choose type as Standard Purchase Order. ZX is the name of a new Application "E-Business Tax". This is useful in cases whereby two vendors effectively belong the same HZ_Party Record. ZX_PARTY_TAX_PROFILE : The taxation related details like Tax Codes. 2) Create Purchase Order 11i There are 4 types of Purchase Orders: 1. Buyer. quantities. quantity. RFQs. You must specify tentative delivery schedules and all details for goods or services that you want to buy. Standard PO: A Standard PO is created for onetime purchase of various items 2. and quotations. including charge account. and Tax Accounts etc have been moved from AP into ZX. and estimated cost. specify the line number. Enter the Supplier. Item. line type. 3. Blanket agreement: A Blanket PO is created when you know the detail of the goods or services you plan to buy from a specific supplier in a period. PO_VENDOR_SITES and PO_VENDOR_SITES_ALL are also views based upon AP_SUPPLIER_SITES_ALL.

To enter more shipment information. select the More tab. Purchasing creates distributions depending on the default information available. Enter the Receipt Close Tolerance percent. and country of origin for the items. -Enter the Action for receipt date control. 1. ThreeWay: Purchase order. receipt. -Enter the default Receipt Routing that you assign goods: Direct Delivery.supplier to deliver the items on a purchase order line. FourWay: Purchase order. When you save. Invoice Close Tolerance percent to set the receiving and invoice close point. . -Enter the maximum acceptable number of Days Early and Days Late for receipts. accepted. -Select Allow Substitute Receipts to indicate that receivers can receive substitute items in place of ordered items. Receipt: Payables must match the invoice to the receipt. Click the Receiving Controls button to enter receiving control information for purchase orders. receipt. and invoice quantities must match within tolerance before the corresponding invoice can be paid. 2. 1. Select one of the following options for Match Approval Level: TwoWay: Purchase order and invoice quantities must match within tolerance before the corresponding invoice can be paid. Select an Invoice Match Option: Purchase Order: Payables must match the invoice to the purchase order. Save the work. -Enter the Action for Overreceipt Quantity. -Enter the maximum acceptable overreceipt Tolerance percent (receipts that exceed the quantity received tolerance). and invoice quantities must match within tolerance before the corresponding invoice can be paid. Inspection Required.

Click Distributions button to enter distributions for the shipments. Underlying Tables: PO_HEADERS_ALL PO_LINES_ALL PO_DISTRIBUTIONS_ALL (REQ_HEADER_REFERENCE_NUM in Distributions table is the Requisition number for this PO) PO_LINE_LOCATIONS_ALL R12 For creating a Purchase order. -Enter the Enforce Ship To location option to determine whether the receiving location must be the same as the shipto location. Click on Automatic as shown in the above figure to create a Purchase Order Click on “Create” button to create a Purchase order . Save the work. Click on the Approve button to initiate the Approval process. let us use the “Autocreate Documents” Form. Select more tab to enter more details and the requisition number (optional). Save the work.or Standard Receipt. Follow the below Navigation and Query for the Requisition.

check the lines you want to receive in the PO. Buyers can now choose to enable them only in specific inventory organizations.0 organizations can also use RTF or PDF layout templates which require little training to configure and maintain. With Release 12. Base tables are same as 11i but few extra columns. Note: 1. Now can check the Inventory in the same subinventory for the item's on-hand quantity. 3. Click on Header button and Save which creates the receipt. Note down the PO number. Receipt Tables are: RCV_SHIPMENT_HEADERS . Navigation: Receiving--Receipts Enter the PO Number and select find button. 2.View the shipment screen to change the “Match Approval Level” to “2-Way”. Go to Lines. In Release 11i10 generation of purchasing documents in Adobe PDF format required organizations to create layout templates in the form of XSL-FO style sheets. Release 12. Click the “Receiving Controls” to make sure that the “Routing” is made as “Direct Routing” Click Save and submit for Approval. 3) Create Receipt 11i Create a receipt to receive the items in the Purchase Order.0 allows finer control of how blanket agreements are enabled for automatic document sourcing.

Vision Operations (USA) > InvoicesEntryInvoices Enter type --Standard. Navigation: Payables. Click the Match button to match to either Purchase Order or Receipt (depending on the Invoice Match option specified on the PO) and avoid manually entering the invoice. Click the “Header Button” to view the Receipt Number.RCV_SHIPMENT_LINES (Lines Table has PO_HEADER_ID) R12 Navigate to RECEIVING-->RECEIPTS Query with the Purchase order created in the above stage. . supplier information and amount. its time to pay the vendor for the goods purchased and hence the invoices are created. 4) Create Invoice in Payables 11i Once the goods are received.(8457) Note: 1) Base tables are same as in 11i but few extra columns. Check the check box near to the lines that are received and click save.

Click on OK button. it has to be Validated and Accounted before you can pay it. Create Accounting Entries: Click on Actions Button and Select Create Accounting. Now you can see the status of the invoice as Validated. Select the lines required and click on Match button. Validating the Invoice: Click on Actions Button and Select Validate. This creates the invoice and you can see the status of the invoice as Never Validated.Enter the PO Number you want match to and click Find. if there are no issues during validation. You can see the Accounting Entries here: Tools --View Accounting Now we can see the Accounted status as Yes Invoice Tables: AP_INVOICES_ALL AP_INVOICE_DISTRIBUTIONS_ALL Accounting Entries Tables: AP_ACCOUNTING_EVENTS_ALL AP_AE_HEADERS_ALL AP_AE_LINES_ALL R12 . Click on OK button. Click on Distribute button to navigate to the Match to Purchase Order Distributions window.

But in R12 . Check the status of the program.Asset Tracking Business Tax . Allocation of freight and special charges are captured at the distribution level only Tax and payment and Project accounting Payment was captured through global Descriptive Flexfields. 1. Allocate freight and special charges are captured to the lines on the invoice Invoice distributions created at the maximum level of detail similar to 11i. (pay on receipt auto invoice). debit memo. Creation of Accounting and Payment . credit memo and do payments for the suppliers. Query for the Purchase order as below. we have seen invoices: • • • Had only distributions line. modules Because of introduction of invoice lines there is significant improvement of data flow with n other oracle • • • • Fixed Asset . Checking the Invoice Change to any Payables Responsibility and open the invoices Form. The information regarding these invoices are stored into ap_invoices_all and also in in to ap_invoice_lines_all Till 11i version. Click “Actions” Button then tick the “Validate Check Box” and press “Ok” to validate the invoice and will change the status of invoice.Payables : Creating invoices. 3.Payment SubLedger Accounting – Accounting Navigate to any Purchasing Responsibility and view -->Requests Submit the below requests by providing the Receipt number as Parameter to create an invoice. 2.Tax line Payment . Invoice Lines as a new additional line accommodated in Invoice data model.

generated automatically or imported from the Open Interface tables.000. Tools menu View Accounting Payment Tables: . Select the void checkbox to cancel the payment. Select the bank account and Document.00 before you make a payment. Save the Work. click actions so that we can “Create Accounting” and “Create Payments” via “Action” Button in the “Invoice Form” as we validated the invoice. Now that the payment is made.Once invoice got approved. Create Accounting entries for payment. Select Pay in full and click OK. AP_INVOICE_LINES_ALL holds invoice lines records entered manually. when you query for the invoice in Invoice window. An invoice line represents goods (direct or indirect materials). you will the Amount Paid as $4. 5) Making a Payment 11i Go to the Invoice window and query the invoice you want to pay.00. Note: 1. View Accounting Entries: In the Payments window. Click Actions button. query for the payment. You would see Amount paid as 0. Click Actions and select Create Accounting. An invoice can have one or more invoice lines and an invoice line can have one or more invoice distributions. and/or associated tax/freight/miscellaneous charges invoiced from a supplier. service(s).

6) Transfer to General Ledger Banks/Branches defined in AP Bank accounts often replicated in multiple OUs Before 11i Navigation: Payables Responsibility > View Requests Run the concurrent program Payables Transfer to General Ledger with the required parameters. run the Journal Import program from Oracle General Ledger. R12 1. Journal Import:To transfer the data from General Ledger Interface table to General Ledger. Base tables are same as 11i but Suppliers Bank Accounts 11i 1.AP_INVOICE_PAYMENTS_ALL AP_PAYMENT_SCHEDULES_ALL AP_CHECKS_ALL AP_CHECK_FORMATS AP_BANK_ACCOUNTS_ALL AP_BANK_BRANCHES AP_TERMS You can also pay the invoices using Payment Batch screen. Suppliers. 2. Note: 1. click actions so that we can “Create Accounting” and “Create Payments” via “Action” Button in the “Invoice Form” as we validated the invoice. Credit Cards) moved into Oracle Payments. 2. 3. Enter one of the following Selection Criteria: . Banks and Branches are defined as Parties in TCA Supplier (party’s) payment information and all payment instruments (Bank Accounts. Navigation: General Ledger > Journal> Import> Run Parameters: • • Select the appropriate Source. Refer to the article Make AP Payments through R12 Once invoice got approved.

No Group ID: To import all data for that source that has no group ID. The Transfer Journal Entries to GL program needs to be ran separately to transfer . that accounting will not be transferred.etc The Create Accounting process has similar options. Choose a specific group ID from the List of Values for the Specific Value field. Choose Create Summary Journals to have journal import create the following: • one journal line for all transactions that share the same account. Use this option if you specified a NULL group ID for this source. period. Posting: We have to Post journal batches that we have imported previously to update the account balances in General Ledger. General Ledger imports all journals data. Click on Import button. General Ledger imports all data from the specified journal entry source. and whether to import them with validation. If you do not specify a date range. If there is accounting created by the online option = Final or a previous Create Accounting program that was not transferred. Mode= Final Post in GL = yes. where the Group_ID is null. period. Navigation: General Ledger> Journals > Enter Query for the unposted journals for a specific period If you know the batch name to be posted you can directly post using the Post window Navigation: General Ledger> Journals> Post R12 Navigation: Payables Responsibility > View -->Requests Run the concurrent program "create accounting" with the required parameters... All Group IDs: To import all data for that source that has a group ID. When the Create Accounting process transfers the journal entries to GL it only transfers the accounting created by the process that calls it.. Specific Group ID: To import data for a specific source/group ID combination. the Transfer to GL parameter can be used to automatically transfer the accounting created by the corresponding run. • Define the Journal Import Run Options (optional) Choose Post Errors to Suspense if you have suspense posting enabled for your set of books to post the difference resulting from any unbalanced journals to your suspense account. If you do not specify a Group ID. Choose whether to Import Descriptive Flexfields. Use this option to import multiple journal batches for the same source with varying group IDs. you can create accounting in Final or Draft mode and if Final mode is selected. • • Enter a Date Range to have General Ledger import only journals with accounting dates in that range. and currency and that has a credit balance. and currency and that has a debit balance • one journal line for all transactions that share the same account.

especially if you have altered your subledger accounting rules. customers and transactions. In R12 the adjustment in GL is automated. Note: 1. .any accounting created online or created by a previous Create Accounting process that did not transfer the entries. RECONCILIATION CASH MANAGEMENT-DIFFERENCE BETWEEN 11i AND R12. The create accounting program and Transfer to GL program will transfer the write off journals automatically to General Ledger.The point to note is that when you do account balance reconciliation you should ignore distributions in Release 12. 2. In the accounting reports in Release 11i you’d see the balances but not the transactional information. No manual journal is required. In Release 11i you reconciled your transactions and distributions to General Ledger through transactional reports. The new accounting reports in Release 12 now also contain more comprehensive information not just on balances but also on suppliers. In Release 12 there is no reason to reconcile distributions on transactions to General Ledger. You can still reconcile transaction reports to accounting reports. 3. The Sub-Ledger Accounting ( SLA ) Flow Chart in R12 Some of the SLA TABLES : XLA_AE_HEADERS : stores subledger journal entries. From a reconciliation perspective the picture above shows what’s changes between R11i and R12. There is a one-to-many relationship between accounting events and journal entry headers.

XLA_AE_LINES : Stores Journal entry lines XLA_DISTRIBUTION_LINKS : Links b/w transactions and sub-ledger journal entries. .

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