Procure to pay cycle Procure to Pay cycle covers the following steps 1. Creating Requisition 2.

Creating Purchase Order 3. Creating Receipt 4. Creating Invoice in AP 5. Paying the Invoice 6. Transfer, Import and Post to GL Overview: In this article, we will see the steps involved in Procure to Pay Cycle. Here is the diagrammatic representation:

1) Create Requisition: Requisition is nothing but a formal request to buy something (like Inventory material, office supplies etc) needed for the enterprise. Only an employee can create one. There are two types of requisitions: Internal Requisition: Internal requisitions provide the mechanism for requesting and transferring material from one inventory to other inventory. Purchase requisition: Unlike Internal requisitions, Purchase requisitions are used for requesting material from suppliers. Navigation: Purchasing Vision Operations (USA) > Requisitions > Requisitions Choose the requisition type and enter the Item, quantity, Price details in the Lines tab.

In Source Details tab, specify the Buyer name.

Click the Distributions button. Enter the Charge Account.

The requisition needs to be approved first before proceeding further by the concerned authority.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. The status of the requisition will now be Incomplete. The status will now be updated to In Process . . Submit this requisition for Approval by clicking on the Approve button.Save the work. And now the Approve button is highlighted.

At any time the status of requisition can be checked using the Requisition summary window. Navigation: Requisitions > Requisition Summary Enter requisition number and click on the find button. .

In the Lines tab. Standard PO: A Standard PO is created for onetime purchase of various items 2. approved and cancelled the requisitions) as below: Navigation: Tools menu > Action History. 3. Enter the Supplier. specify the line number. Underlying Tables: PO_REQUISITION_HEADERS_ALL PO_REQUISITION_LINES_ALL PO_REQ_DISTRIBUTIONS_ALL 2) Create Purchase Order : Purchase Orders : There are 4 types of 1. 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. . line type. Item. Planned PO: A Planned PO is a long term agreement committing to buy items or services from a single source. 4. Buyer. quantities. and estimated cost. price etc. You must specify tentative delivery schedules and all details for goods or services that you want to buy.We can also check the Action History of requisition (it will show details about who has submitted. including charge account. 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. quantity. but you do not know the detail of your delivery schedules.

Click Currency button to enter and change currency information for purchase orders. date you want your supplier to deliver the items on a purchase order line.Click Terms to enter terms. conditions. When you save. . Purchasing creates distributions depending on the default information available. and control information for purchase orders. and quotations. shipto organization and location. Click Shipments button to enter multiple shipments for standard and planned purchase order lines Purchase order shipment specifies the quantity. RFQs. and country of origin for the items.

receipt. 1. FourWay: Purchase order. corresponding invoice ThreeWay: Purchase order. 1. Select an Invoice Match Option: Purchase Order: Payables must match the invoice to the purchase order. 2. and invoice quantities must match within tolerance before the corresponding invoice can be paid. accepted. Receipt: Payables must match the invoice to the receipt. select the More tab. .To enter more shipment information. and invoice quantities must match within tolerance before the corresponding invoice can be paid. Invoice Close Tolerance percent to set the receiving and invoice close point. Enter the Receipt Close Tolerance percent. Select one of the following options for Match Approval Level: TwoWay: Purchase order and invoice quantities must match within tolerance before the can be paid. Save the work. receipt.

Enter the maximum acceptable over receipt Tolerance percent (receipts that exceed the Quantity received tolerance).Enter the Action for receipt date control.Enter the Enforce Ship To location option to determine whether the receiving location must be the same as the shipto location. . . . Inspection Required.Enter the Action for Over receipt Quantity. . . or Standard Receipt. .Enter the maximum acceptable number of Days Early and Days Late for receipts.Click the Receiving Controls button to enter receiving control information for purchase orders.Enter the default Receipt Routing that you assign goods: Direct Delivery. Save the work. . .Select Allow Substitute Receipts to indicate that receivers can receive substitute items in place of ordered items.

Select more tab to enter more details and the requisition number (optional). Save the work.Click Distributions button to enter distributions for the shipments. .

Click on the Approve button to initiate the Approval process. 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 3) Create Receipt: Create a receipt to receive the items in the Purchase Order. check the lines you want to receive in the PO. Navigation: Receiving ->Receipts Enter the PO Number and select find button. Go to Lines.

Click on Header button and Save which creates the receipt. .

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. Navigation: Payables. . supplier information and amount.Receipt Tables are: RCV_SHIPMENT_HEADERS RCV_SHIPMENT_LINES (Lines Table has PO_HEADER_ID) 4) Create Invoice in Payables: Once the goods are received.Standard. its time to pay the vendor for the goods purchased and hence the invoices are created. Vision Operations (USA) > InvoicesEntryInvoices Enter type -. Enter the PO Number you want match to and click Find.

Click on Distribute button to navigate to the Match to Purchase Order Distributions window. .Select the lines required and click on Match button.

it has to be Validated and Accounted before you can pay it. Validating the Invoice: Click on Actions Button and Select Validate. if there are no issues during validation.This creates the invoice and you can see the status of the invoice as Never Validated. Click on OK button. Now you can see the status of the invoice as Validated. . Click on OK button. Create Accounting Entries: Click on Actions Button and Select Create Accounting.

You can see the Accounting Entries here: Tools View Accounting .Now we can see the Accounted status as Yes.

Select Pay in full and click OK. You would see Amount paid as 0. .00 before you make a payment.Invoice Tables: AP_INVOICES_ALL AP_INVOICE_DISTRIBUTIONS_ALL Accounting Entries Tables: AP_ACCOUNTING_EVENTS_ALL AP_AE_HEADERS_ALL AP_AE_LINES_ALL 5) Making a Payment: Go to the Invoice window and query the invoice you want to pay. Click Actions button.

Save the Work. .Select the Bank Account and Document.

Click Actions and select Create Accounting . you will the Amount Paid as $4.00. Create Accounting entries for payment. when you query for the invoice in Invoice window.000.Now that the payment is made.

Tools menu View Accounting Payment Tables: 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. Refer to the article Make AP Payments through Payment Batches . query for the payment.Select the void checkbox to cancel the payment. View Accounting Entries: In the Payments window.

Posting: Refer to the Article Order to Cash Cycle. Journal Import: Refer to the Article Order to Cash Cycle. .6) Transfer to General Ledger : Navigation: Payables Responsibility > View Requests Run the concurrent program Payables Transfer to General Ledger with the required parameters.