Procure to Pay (P2P) Cycle: 11i vs.

R12
• February 1, 2014
• Architecture / Payables
• Leave a comment
• MOC Admin
his !ost "ill #ive you the di$$erences in the ste!s o$ Procure to Pay %P2P& Cycle in 11i and in '12(
1) Create Requisition:
'e)uisition is nothin# but a $ormal re)uest to buy somethin# %li*e +nventory material, o$$ice su!!lies etc(& needed $or the enter!rise( Only an
em!loyee can create one(
here are t"o ty!es o$ re)uisitions,
• Internal Requisition: +nternal re)uisitions !rovide the mechanism $or re)uestin# and trans$errin# material $rom one inventory to
other inventory(
• Purchase requisition: -nli*e +nternal re)uisitions, Purchase re)uisitions are used $or re)uestin# material $rom su!!liers(
Navigation:
Purchasin# .ision O!erations %-/A& 0 'e)uisitions 0 'e)uisitions(
1( Choose the re)uisition ty!e and enter the +tem, )uantity, Price details in the Lines tab(
2( +n /ource 1etails tab, s!eci$y the 2uyer name(
3( Clic* the 1istributions button( 4nter the Char#e Account(
4( /ave the "or*( he status o$ the re)uisition "ill no" be +ncom!lete( And no" the A!!rove button is hi#hli#hted(
he re)uisition needs to be a!!roved $irst be$ore !roceedin# $urther by the concerned authority( /ubmit this re)uisition $or A!!roval by
clic*in# on the A!!rove button( he status "ill no" be u!dated to +n Process (he "or*$lo" then "ill send an A!!roval noti$ication to the
concerned !erson %derived based on hierarchy used Position or /u!ervisor hierarchy& usin# "hich he can A!!rove or 'e5ect the re)uisition(
• At any time the status o$ re)uisition can be chec*ed usin# the 'e)uisition summary "indo"( 6avi#ation %'e)uisitions 0
'e)uisition /ummary&( 7ere enter re)uisition number and clic* on the $ind button(
• 8e can also chec* the Action 7istory o$ re)uisition %it "ill sho" details about "ho has submitted, a!!roved and cancelled the
re)uisitions&( 6avi#ation %ools menu 0 Action 7istory&(
• Underlying Tales:
• PO9'4:-+/++O6974A14'/9ALL
• PO9'4:-+/++O69L+64/9ALL
• PO9'4:91+/'+2-+O6/9ALL
8ithout chan#in# 'es!onsibility and "ithout closin# "indo"s buyers "ill no" be able to vie" consolidated re)uisition demand s!annin#
multi!le o!eratin# units( he o!eratin# units that buyers can transact on behal$ o$ "ill be controlled by the security !ro$ile associated "ith
their res!onsibilities(
• O!eratin# -nit e;tra $ield in the '12 $orms due to MOAC(
• 2ase tables are same as 11i but more than 1< e;tra columns in '12 $or the table PO9'4:-+/+O6974A14'/9ALL,
PO9'4:-+/+O69L+64/9ALL and PO9'4:91+/'+2-+O6/9ALL $or ta; etc(
• Many chan#es "ere ha!!ened in su!!lier details in '12(
Note: !u""liers into TC# $ #rchitecture in R12:
Prior to '12 the su!!lier=s in$ormation is stored in PO9.461O'/( From '12 on"ards su!!liers have been moved in to the CA 1ata
Model(
• %&'P#RTI(!: his is the master table $or su!!liers(
• %&'P#RT)'U!*'#!!I*N+(NT!: his table stores the Party -sa#es, $or e;am!le, $or the su!!liers it ca!tures the $act that
the #iven !arty9id is o$ ty!e /-PPL+4'(
• %&',R*#NI&#TI,N'PR,-I.(!: his table ca!tures additional /u!!lier in$ormation, $or e;am!le, credit scorin# details o$
/u!!lier or the 6umber o$ 4m!loyees "or*in# in /u!!lier Or#ani>ation(
• I/)'(0T(RN#.'P#)((!'#..: +t ca!tures !ayment related details o$ the su!!lier( Li*e ho" should the su!!lier=s
remittance advice must be sent, de$ault Payment method Code $or this su!!lier, "ho bears the ban* char#es "hen let=s say /8+F
!ayment is made?
• #P'!UPP.I(R!: his is another master table that re!laces the PO9.461O'/ table( +t stores the su!!lier s!eci$ic attributes(
• P,!'!UPP.I(R'+#PPIN*!: his table holds the ma!!in# bet"een the AP9/-PPL+4'/(.461O'9+1 and
7@9PA'+4/(PA'A9+1( his is use$ul in cases "hereby t"o vendors e$$ectively belon# the same 7@9Party 'ecord(
• &0'P#RT)'T#0'PR,-I.(: he ta;ation related details li*e a; Codes, and a; Accounts etc( have been moved $rom AP
into @B( @B is the name o$ a ne" A!!lication C4D2usiness a;E(
• P,'1(N2,R!: PO9.461O'/ is a vie" in '12, "hich 5oins AP9/-PPL+4'/ F 7@9PA'+4/(
/imilarly, PO9.461O'9/+4/ and PO9.461O'9/+4/9ALL are also vie"s based u!on AP9/-PPL+4'9/+4/9ALL(
2) Create Purchase ,rder:
here are 4 ty!es o$ Purchase Orders,
1. !tandard P,: A /tandard PO is created $or onetime !urchase o$ various items(
2. Planned P,: A Planned PO is a lon#Dterm a#reement committin# to buy items or services $rom a sin#le source( Aou must s!eci$y
tentative delivery schedules and all details $or #oods or services that you "ant to buy, includin# char#e account, )uantities, and estimated
cost(
3. /lan4et agree5ent: A 2lan*et PO is created "hen you *no" the detail o$ the #oods or services you !lan to buy $rom a s!eci$ic su!!lier
in a !eriod, but you do not *no" the detail o$ your delivery schedules(
6. Contract agree5ent: Contract !urchase a#reements are created "ith your su!!liers to a#ree on s!eci$ic terms and conditions "ithout
indicatin# the #oods and services that you "ill be !urchasin#
Navigation 7or creating a standard P,:
1( Purchase Orders 0 Purchase Orders
2( Choose ty!e as /tandard Purchase Order( 4nter the /u!!lier, 2uyer( +n the Lines tab, s!eci$y the line number, line ty!e, +tem,
)uantity, !rice etc(
3( Clic* erms to enter terms, conditions, and control in$ormation $or !urchase orders(
4( Clic* Currency button to enter and chan#e currency in$ormation $or !urchase orders, 'F:s, and )uotations(
<( Clic* /hi!ments button to enter multi!le shi!ments $or standard and !lanned !urchase order lines Purchase order shi!ment
s!eci$ies the )uantity, shi!Dto or#ani>ation and location, date you "ant your su!!lier to deliver the items on a !urchase order line, and
country o$ ori#in $or the items( 8hen you save, Purchasin# creates distributions de!endin# on the de$ault in$ormation available(
G( o enter more shi!ment in$ormation, select the More tab(
H( 4nter the 'ecei!t Close olerance !ercent, +nvoice Close olerance !ercent to set the receivin# and invoice close !oint(
I( /elect one o$ the $ollo"in# o!tions $or Match A!!roval Level,
• T8o9ay: Purchase order and invoice )uantities must match "ithin tolerance be$ore the corres!ondin# invoice can be !aid(
• Three9ay: Purchase order, recei!t, and invoice )uantities must match "ithin tolerance be$ore the corres!ondin# invoice can be
!aid(
• -our9ay: Purchase order, recei!t, acce!ted, and invoice )uantities must match "ithin tolerance be$ore the corres!ondin#
invoice can be !aid(
1( /elect an +nvoice Match O!tion
• Purchase Order, Payables must match the invoice to the !urchase order(
• 'ecei!t, Payables must match the invoice to the recei!t(
1( /ave the "or*(
2( Clic* the 'eceivin# Controls button to enter receivin# control in$ormation $or !urchase orders(
3( 4nter the ma;imum acce!table number o$ 1ays 4arly and 1ays Late $or recei!ts(
4( 4nter the Action $or recei!t date control(
<( 4nter the ma;imum acce!table overDrecei!t olerance !ercent %recei!ts that e;ceed the )uantity received tolerance&(
G( 4nter the Action $or OverDrecei!t :uantity(
H( /elect Allo" /ubstitute 'ecei!ts to indicate that receivers can receive substitute items in !lace o$ ordered items(
I( 4nter the de$ault 'ecei!t 'outin# that you assi#n #oods, 1irect 1elivery, +ns!ection 'e)uired, or /tandard 'ecei!t(
J( 4nter the 4n$orce /hi! o location o!tion to determine "hether the receivin# location must be the same as the shi!Dto location(
10( /ave the "or*(
11( Clic* 1istributions button to enter distributions $or the shi!ments(
12( /elect more tab to enter more details and the re)uisition number %o!tional&(
13( /ave the "or*(
14( Clic* on the A!!rove button to initiate the A!!roval !rocess(
Underlying Tales:
• PO974A14'/9ALL
• PO9L+64/9ALL
• PO91+/'+2-+O6/9ALL %'4:974A14'9'4F4'46C496-M in 1istributions table is the 'e)uisition number $or this
PO&
• PO9L+649LOCA+O6/9ALL

For creatin# a Purchase order, let us use the CAutocreate 1ocumentsE Form( Follo" the belo" 6avi#ation and :uery $or the 'e)uisition(
1( Clic* on Automatic to create a Purchase Order(
2( Clic* on CCreateE button to create a Purchase order(
3( .ie" the shi!ment screen to chan#e the CMatch A!!roval LevelE to C2D8ayE(
4( Clic* the C'eceivin# ControlsE to ma*e sure that the C'outin#E is made as C1irect 'outin#E
<( Clic* /ave and submit $or A!!roval(
Note:
1( +n 'elease 11i10 #eneration o$ !urchasin# documents in Adobe P1F $ormat re)uired or#ani>ations to create layout tem!lates in
the $orm o$ B/LDFO style sheets( 8ith 'elease 12(0 or#ani>ations can also use 'F or P1F layout tem!lates "hich re)uire little
trainin# to con$i#ure and maintain(
2( 2ase tables are same as 11i but $e" e;tra columns(
3( 'elease 12(0 allo"s $iner control o$ ho" blan*et a#reements are enabled $or automatic document sourcin#( 2uyers can no"
choose to enable them only in s!eci$ic inventory or#ani>ations(
3) Create Recei"t:

Create a recei!t to receive the items in the Purchase Order(
Navigation:
1( 'eceivin#K'ecei!ts(
2( 4nter the PO 6umber and select $ind button(
3( Lo to LinesM chec* the lines you "ant to receive in the PO(
4( Clic* on 7eader button and save "hich creates the recei!t(
<( 6o" you can chec* the +nventory in the same subinventory $or the item=s onDhand )uantity(
Recei"t Tales are:
• 'C.9/7+PM46974A14'/
• 'C.9/7+PM469L+64/ %Lines able has PO974A14'9+1&
• 6avi#ate to '4C4+.+6LN0'4C4+P/
• :uery "ith the Purchase order created in the above sta#e(
• Chec* the chec* bo; near to the lines that are received and clic* save(
• Clic* the C7eader 2uttonE to vie" the 'ecei!t 6umber(
Note:
2ase tables are same as in 11i but $e" e;tra columns(
6) Create Invoice in Payales:
Once the #oods are received, it=s time to !ay the vendor $or the #oods !urchased and hence the invoices are created(
1( 6avi#ation, Payables, .ision O!erations %-/A& 0 +nvoices 4ntry0 +nvoices
2( 4nter ty!e N/tandard, su!!lier in$ormation and amount(
3( Clic* the Match button to match to either Purchase Order or 'ecei!t %de!endin# on the +nvoice Match o!tion s!eci$ied on the
PO& and avoid manually enterin# the invoice(
4( 4nter the PO 6umber you "ant match to and clic* Find(
<( /elect the lines re)uired and clic* on Match button(
G( Clic* on 1istribute button to navi#ate to the Match to Purchase Order 1istributions "indo"(
H( his creates the invoice and you can see the status o$ the invoice as 6ever .alidated( +t has to be .alidated and Accounted be$ore
you can !ay it(
I( .alidatin# the +nvoice, Clic* on Actions 2utton and /elect .alidate( Clic* on OO button(
J( 6o" you can see the status o$ the invoice as .alidated, i$ there are no issues durin# validation(
10( Create Accountin# 4ntries, Clic* on Actions 2utton and /elect Create Accountin#( Clic* on OO button(
11( Aou can see the Accountin# 4ntries here, ools N.ie" Accountin#(
12( 6o" "e can see the Accounted status as Aes(
Invoice Tales:
• AP9+6.O+C4/9ALL
• AP9+6.O+C491+/'+2-+O6/9ALL
#ccounting (ntries Tales:
• AP9ACCO-6+6L94.46/9ALL
• AP9A4974A14'/9ALL
• AP9A49L+64/9ALL
Creatin# invoices, debit memo, credit memo and do !ayments $or the su!!liers( he in$ormation re#ardin# these invoices are stored into
a!9invoices9all and also in in to a!9invoice9lines9all(
#P'IN1,IC('.IN(!'#.. holds invoice lines records entered manually, #enerated automatically or im!orted $rom the O!en +nter$ace
tables( An invoice can have one or more invoice lines and an invoice line can have one or more invoice distributions( An invoice line
re!resents #oods %direct or indirect materials&, service%s&, and/or associated ta;/$rei#ht/miscellaneous char#es invoiced $rom a su!!lier(
ill 11i version, "e have seen invoices,
• 7ad only distributions line(
• Allocation o$ $rei#ht and s!ecial char#es are ca!tured at the distribution level only(
• a; and !ayment and Pro5ect accountin# Payment "as ca!tured throu#h #lobal 1escri!tive Fle;$ields(
2ut in '12,
• +nvoice Lines as a ne" additional line accommodated in +nvoice data model(
• Allocate $rei#ht and s!ecial char#es are ca!tured to the lines on the invoice(
• +nvoice distributions created at the ma;imum level o$ detail similar to 11i(
2ecause o$ introduction o$ invoice lines there is si#ni$icant im!rovement o$ data $lo" "ith other oracle modules
• Fi;ed Asset N Asset rac*in#
• 2usiness a; N a; line
• Payment N Payment
• /ubLed#er Accountin# N Accountin#
:) +a4ing a Pay5ent:
1( Lo to the +nvoice "indo" and )uery the invoice you "ant to !ay( Aou "ould see Amount !aid as 0(00 be$ore you ma*e a
!ayment(
2( Clic* Actions button( /elect Pay in $ull and clic* OO(
3( /elect the ban* account and 1ocument( /ave the 8or*(
4( 6o" that the !ayment is made, "hen you )uery $or the invoice in +nvoice "indo", you "ill $ind the Amount Paid(
<( Create Accountin# entries $or !ayment( Clic* Actions and select Create Accountin#(
G( /elect the void chec*bo; to cancel the !ayment(
H( .ie" Accountin# 4ntries, +n the Payments "indo", )uery $or the !ayment( ools0 menu0.ie" Accountin#(
I( Aou can also !ay the invoices usin# Payment 2atch screen(
Pay5ent Tales:
• AP9+6.O+C49PAAM46/9ALL
• AP9PAAM469/C741-L4/9ALL
• AP9C74CO/9ALL
• AP9C74CO9FO'MA/
• AP92A6O9ACCO-6/9ALL
• AP92A6O92'A6C74/
• AP94'M/
Once invoice #ot a!!roved, clic* actions so that "e can CCreate Accountin#E and CCreate PaymentsE via CActionE 2utton in the C+nvoice
FormE as "e validated the invoice(
!u""liers /an4 #ccounts:
• +n 11i, 2an*s and 2ranches are de$ined in AP( 1ue to this, 2an* accounts o$ten re!licated in multi!le O-s(
• +n '12, /u!!liers, 2an*s and 2ranches are de$ined as Parties in CA( /u!!lier %!arty=s& !ayment in$ormation and all !ayment
instruments %2an* Accounts, Credit Cards& moved into Oracle Payments(
;) Trans7er to *eneral .edger:
Navigation:
Payables 'es!onsibility 0 .ie" 'e)uests
'un the concurrent !ro#ram Payables rans$er to Leneral Led#er "ith the re)uired !arameters(
<ournal I5"ort: o trans$er the data $rom Leneral Led#er +nter$ace table to Leneral Led#er, run the Pournal +m!ort !ro#ram $rom Oracle
Leneral Led#er(
1( 6avi#ation, Leneral Led#er 0 Pournal0 +m!ort0 'un
2( /elect the a!!ro!riate /ource(
3( 4nter one o$ the $ollo"in# /election Criteria,
• 6o Lrou! +1, o im!ort all data $or that source that has no #rou! +1( -se this o!tion i$ you s!eci$ied a 6-LL #rou! +1 $or this
source(
• All Lrou! +1s, o im!ort all data $or that source that has a #rou! +1( -se this o!tion to im!ort multi!le 5ournal batches $or the
same source "ith varyin# #rou! +1s(
• /!eci$ic Lrou! +1, o im!ort data $or a s!eci$ic source/#rou! +1 combination( Choose a s!eci$ic #rou! +1 $rom the List o$
.alues $or the /!eci$ic .alue $ield(
1( +$ you do not s!eci$y a Lrou! +1, Leneral Led#er im!orts all data $rom the s!eci$ied 5ournal entry source, "here the Lrou!9+1 is
null(
2( 1e$ine the Pournal +m!ort 'un O!tions %o!tional&(
3( Choose Post 4rrors to /us!ense i$ you have sus!ense !ostin# enabled $or your set o$ boo*s to !ost the di$$erence resultin# $rom
any unbalanced 5ournals to your sus!ense account(
4( Choose Create /ummary Pournals to have 5ournal im!ort create the $ollo"in#,
• One 5ournal line $or all transactions that share the same account, !eriod, and currency and that has a debit balance(
• One 5ournal line $or all transactions that share the same account, !eriod, and currency and that has a credit balance(
1( 4nter a 1ate 'an#e to have Leneral Led#er im!ort only 5ournals "ith accountin# dates in that ran#e( +$ you do not s!eci$y a date
ran#e, Leneral Led#er im!orts all 5ournals data(
2( Choose "hether to +m!ort 1escri!tive Fle;$ields, and "hether to im!ort them "ith validation(
3( Clic* on +m!ort button(
Posting:
8e have to Post 5ournal batches that "e have im!orted !reviously to u!date the account balances in Leneral Led#er(
1( 6avi#ation, Leneral Led#er0 Pournals 0 4nter
2( :uery $or the un!osted 5ournals $or a s!eci$ic !eriod(
3( +$ you *no" the batch name to be !osted you can directly !ost usin# the Post "indo"( 6avi#ation, Leneral Led#er0 Pournals0
Post
Navigation:
Payables 'es!onsibility 0 .ie" N0'e)uests
'un the concurrent !ro#ram Ccreate accountin#E "ith the re)uired !arameters(
ModeQ Final
Post in LL Q yesR(etc
he Create Accountin# !rocess has similar o!tions, you can create accountin# in Final or 1ra$t mode and i$ Final mode is selected, the
rans$er to LL !arameter can be used to automatically trans$er the accountin# created by the corres!ondin# run( 8hen the Create
Accountin# !rocess trans$ers the 5ournal entries to LL it only trans$ers the accountin# created by the !rocess that calls it( +$ there is
accountin# created by the online o!tion Q Final or a !revious Create Accountin# !ro#ram that "as not trans$erred, that accountin# "ill not
be trans$erred( he rans$er Pournal 4ntries to LL !ro#ram needs to be run se!arately to trans$er any accountin# created online or created by
a !revious Create Accountin# !rocess that did not trans$er the entries(
Note:
1( +n '12 the ad5ustment in LL is automated( 6o manual 5ournal is re)uired( he create accountin# !ro#ram and rans$er to LL
!ro#ram "ill trans$er the "rite o$$ 5ournals automatically to Leneral Led#er(
2( +n 'elease 11i you reconciled your transactions and distributions to Leneral Led#er throu#h transactional re!orts( +n the
accountin# re!orts in 'elease 11i you=d see the balances but not the transactional in$ormation( +n 'elease 12 there is no reason to
reconcile distributions on transactions to Leneral Led#er( Aou can still reconcile transaction re!orts to accountin# re!orts( he ne"
accountin# re!orts in 'elease 12 no" also contain more com!rehensive in$ormation not 5ust on balances but also on su!!liers,
customers and transactions( he !oint to note is that "hen you do account balance reconciliation you should i#nore distributions in
'elease 12, es!ecially i$ you have altered your subled#er accountin# rules(
3( Procure to Pay (P2P) Li$ecycle is one o$ the im!ortant Process in Oracle A!!lications( Procure to Pay means Procuring Ra8
+aterials re)uired to manu$acture the $inal or $inished Loods $rom a /u!!lier to Paying the !u""lier $rom "hom the material
"as !urchased( he $ollo"in# )uery is a use$ul )uery to understand the $e" tables related to the P2P cycle(
4( For detail +n$ormation in P2P cycle, read the !ost here(
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4(.461O'96AM4 S.461O' 6AM4S,
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F(.461O'9/+49CO14 S.461O' /+4S,
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F(C+A SC+AS,
F(CO-6'A SCO-6'AS,
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T 6.L %L(-6+9P'+C4, 0&
SPO Line AmountS,
%/4L4C 14CO14 %P7(APP'O.419FLAL, UAU, UA!!rovedU&
F'OM PO(PO974A14'/9ALL P7
874'4 P7(PO974A14'9+1 Q 1(PO974A14'9+1&
SPO /A-/S,
A(+6.O+C49AP49LOOO-P9CO14 S+6.O+C4 AP4S,
A(+6.O+C49AMO-6 S+6.O+C4 AMO-6S,
O9C7A' %'-6C %A(+6.O+C491A4&& S+6.O+C4 1A4S,
A(+6.O+C496-M S+6.O+C4 6-M24'S,
%/4L4C 14CO14 %B(MAC79/A-/9FLAL, UAU, UA!!rovedU&
F'OM AP(AP9+6.O+C491+/'+2-+O6/9ALL B
874'4 B(+6.O+C491+/'+2-+O69+1 Q 2(+6.O+C491+/'+2-+O69+1&
S+nvoice A!!roved?S,
A(AMO-69PA+1,
7(AMO-6,
+(C74CO96-M24' SC74:-4 6-M24'S,
O9C7A' %'-6C %+(C74CO91A4&& SPAAM46 1A4S
F'OM AP(AP9+6.O+C4/9ALL A,
AP(AP9+6.O+C491+/'+2-+O6/9ALL 2,
PO(PO91+/'+2-+O6/9ALL C,
PO(PO974A14'/9ALL 1,
PO(PO9.461O'/ 4,
PO(PO9.461O'9/+4/9ALL F,
PO(PO9L+64/9ALL L,
AP(AP9+6.O+C49PAAM46/9ALL 7,
AP(AP9C74CO/9ALL +
874'4 A(+6.O+C49+1 Q 2(+6.O+C49+1
A61 2(PO91+/'+2-+O69+1 Q C(PO91+/'+2-+O69+1%V&
A61 C(PO974A14'9+1 Q 1(PO974A14'9+1%V&
A61 4(.461O'9+1%V& Q 1(.461O'9+1
A61 F(.461O'9/+49+1%V& Q 1(.461O'9/+49+1
A61 1(PO974A14'9+1 Q L(PO974A14'9+1
A61 C(PO9L+649+1 Q L(PO9L+649+1
A61 A(+6.O+C49+1 Q 7(+6.O+C49+1
A61 7(C74CO9+1 Q +(C74CO9+1
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,vervie8 o7 Procure to Pay Cycle in ,racle #""s
Procure to Pay Li$ecycle is one o$ the im!ortant Process in Oracle A!!lications( Procure to Pay means Procuring Ra8 +aterials re)uired
to manu$acture the $inal or $inished Loods $rom a /u!!lier to Paying the !u""lier $rom "hom the material "as !urchased( 2ut this !rocess
is not 5ust t"o ste!s( +t involves many ste!s( Let=s see the ste!s and Oracle A!!lication involved in !er$ormin# those ste!s(
1.Creation ,7 Purchase Requisition
'e)uisition is nothin# but a $ormal re)uest to buy somethin#( 'e)uisitions re!resent the demand $or any #oods or services that an
or#ani>ation needs(
'e)uisitions $or #oods and services,
• Are #enerated by a!!lications includin# +nventory, 8or* in Process %8+P&, Material 'e)uirements Plannin# %M'P& and Order
Mana#ement(
• May be entered manually throu#h Purchasin# "indo"s(
• May be entered usin# iProcurement(
• May be im!orted $rom e;ternal systems(
here are t"o ty!es o$ 'e)uisitions
1= Internal Requisition N 2asically used "hen there is a 'e)uirement $rom One +nventory Or#ani>ation to the Other +nventory
Or#ani>ation %+nterD Or#ani>ation rans$er&
2= Purchase Requisition N 2asically used "hen there is a 'e)uirement to be $ul$illed by 4;ternal /ources i(e( /u!!liers, 'e)uirement $rom
M'P, 'e)uirement $rom 8+P, 'e)uirement $rom /ales Order etc(
8ith ,racle Purchasing module, you can create, edit, and revie" re)uisition in$ormation onDline( hen the 'e)uisitions "ent $or
a!!rovals $rom !ro!er authorities(
2. Creation o7 Purchase ,rder
2ased on the Purchase 'e)uisition and its a!!roval ne;t "e have to create a Purchase order to buy the item(
Purchasing su!!orts $our ty!es o$ !urchase orders,
1] Standard: Create standard !urchase orders $or oneDtime !urchases o$ various items( Aou create standard !urchase orders "hen you *no"
the details o$ the #oods or services you re)uire, estimated costs, )uantities, delivery schedules, and accountin# distributions(
2] Blanket: Create blan*et !urchase a#reements "hen you *no" the detail o$ the #oods or services you !lan to buy $rom a s!eci$ic su!!lier
in a !eriod, but you do not yet *no" the detail o$ your delivery schedules(
3] Contract: Create contract !urchase a#reements "ith your su!!liers to a#ree on s!eci$ic terms and conditions "ithout indicatin# the #oods
and services that you "ill be !urchasin#(
4] Planned: A !lanned !urchase order is a lon#Dterm a#reement committin# to buy items or services $rom a sin#le source( Aou must s!eci$y
tentative delivery schedules and all details $or #oods or services that you "ant to buy, includin# char#e account, )uantities, and estimated
cost(
Once !urchase orders are created, they may be submitted $or a!!roval( he a!!roval !rocess chec*s to see i$ the submitter has su$$icient
authority to a!!rove the !urchase order( Once the document is a!!roved, it may be sent to your su!!lier usin# a variety o$ methods
includin#, !rinted document, 41+, $a;, eDmail, i/u!!lier Portal and BML( Once the !urchase order or release is sent to your su!!lier, they
are authori>ed to shi! #oods at the times and to the locations that have been a#reed u!on(
3. Recei"t o7 +aterial
A$ter receivin# the PO, the su!!lier "ill send the items(
Purchasing lets you control the items you order throu#h receivin#, ins!ection, trans$er, and internal delivery( Aou can use these $eatures to
control the )uantity, )uality, and internal delivery o$ the items you receive(
6. Creation o7 Payales Invoice
Once you=ve received #oods or service $rom your su!!lier, you=ll also receive an invoice( -sin# Payales you can record invoices in a
number o$ di$$erent "ays(
8ith Payables you can,
• +m!ort/4nter invoices manually, either individually or in batches(
• -se :uic* +nvoices $or ra!id, hi#hDvolume entry o$ standard invoices and credit memos that are not com!le; and do not re)uire
e;tensive online validation(
• Automate invoice creation $or !eriodic invoices usin# the 'ecurrin# +nvoice $unctionality(
• -se i4;!enses to enter em!loyee e;!ense re!orts usin# a "eb bro"ser(
• +m!ort 41+ invoices !rocessed "ith the eDCommerce Late"ay(
• +m!ort BML invoices(
• Match invoices to !urchase orders or recei!ts to ensure you only !ay "hat you=re su!!osed to be !ayin# $or(
:. Pay5ent to !u""lier
Once invoices are validated, they can be !aid( Payables inte#rates "ith Oracle Payments, the 4D2usiness /uite !ayment en#ine, to handle
every $orm o$ !ayment, includin# chec*s, manual !ayments, "ire trans$ers, 41+ !ayments, ban* dra$ts, and electronic $unds trans$ers(
Payables also inte#rates "ith Oracle Cash Mana#ement to su!!ort automatic or manual reconciliation o$ your !ayments "ith ban*
statements sent by the ban*(
his is ho" the P2P Cycle occurs in Oracle A!!s(

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