Oracle Procure to Pay Cycle in R12

P to P Cycle: Basic Procure to Pay flow: Internal Demand---Requisitions---Negotiations(Sourcing)---Quatations--AutocreatePO---Purchase Orders---Receiving---Invoice---Payment Oracle Purchasing have two methods for document approval process: 1. Position Hierarchy(If limit exceeds document will forwarded to next/hight position) 2.Employee/Supervisor Hierarchy(If limit exceeds document will forwarded to Supervisor) Step-1: Based on internal demand for goods we can create Requisitions manually or we can import from Inventory,WIP,OM and MRP using standard import process. We can use iProcurement and also core apps to create requisition manually. If any shortage material in Inventory it raise the request automatically as per the setups, it wont create requisition directly. it will insert data into 'PO_REQUISITIONS_INTERFACE_ALL' after that run 'Requisition Import' program to create requisitions. Step-2: If Supplier already selected or you not buying the item first time you can directly create a PO from Requisition using 'Autocreate PO' or you can using 'Sourcing' process to find best supplier in the market. What is Oracle Sourcing: 1. Oracle Sourcing offers flexible negotiation capabilities to buyers and sellers, enabling them to efficiently obtain the best possible prices for goods and services. Prices are established based on actual supply and demand at the time the negotiation is transacted. 2. The three different types of sourcing documents available - requests for quotations (RFQs), requests for information (RFIs), and buyer's auctions. Buyers use real-time interaction to obtain information on suppliers' products and services, and then use that information to create negotiations that drive prices based not only on price, but on lead times, quantity, and item-specific attributes. 3. Buyers and sellers, who might never meet face-to-face, can bypass intermediaries and establish relationships that might not have been possible using more traditional methods of buying and selling. Using sourcing we can select the best supplier and sourcing is linked with PO module directly so can create any negotiation using 'Requisitions' and also after completion of negotiation process you can directly create PO. Step-3: Purchase order creation, we can create PO manually or using Autocreate also. Buyer can change required fields in PO, if requistor gave some supplier details buyer can change the supplier details while creating PO.

Four different types PO's are there in standard Oracle apps:

Step-4: Receiving, once buyer raise the PO to the supplier, supplier will send(ship) goods to buyer organization. Once goods reach buyer organization, receiving process receive goods with process inspection rules and updates the inventory. There are three different types in receipt routing 1. DirectReceipt 2. Standard Receipt 3. Inspection Required Step-5: After receiving goods raise the Invoice against PO manually. We can enter the invoice and after that match the invoice with PO or receipt. Three types of matching options: 1. 2-Way: we can match invoice with either PO amount or PO qunatity 2. 3-Way: we can match invoice with either PO amoutn or PO qunatity or Receipt received quantiy 3. 4-way: we can match invoice with either PO amoutn or PO qunatity or Receipt received quantiy or Receipt accepted quantity Step-6: Once invoice raised need to pay the suppliers using payments. Payments details more bank details and payment formats 'check' or 'Electronic payaments'.