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Procure To Pay Cycle

Training Manual
11/26/2015
INTRASOFT
Murad Hyasat

Table of Contents
Requisition to Receiving Cycle 2
Logging in to the System .. 3
Create Requisition . 4
Create Request for Quotation ... 10
Create Quotation .. 14
Create Purchase Order . 18
Create Receipt .. 26

Requisition To Receive Cycle


The following is an overview of the Requisition-to-Pay life cycle and its implementation in
Oracle Purchasing and Payables applications.

1. Purchase Requisition

Auto-Create

2. Request For Quotation

Copy

3. Quotation
Catalog

Auto-Create

4. Purchase Order

5. Receiving

This is the workflow diagram of the Requisition To Receive process containing a stander
purchase order:
1. Manually create a Purchase Requisition
Reserved
Approved
2. Auto-Create a Request for Quotation From Requisition
Status is Active
3. Copy RFQ to Quotation
Status is Active
Approved ( No Approval Flow)
4. Auto-Create a Standard Purchase Order From Requisition
Catalog price line from Quotation
Reserved
Approved
5. Create a Receipt
Receiving Transactions

LOGGING ON TO THE SYSTEM


Enter your Oracle Username and Password in the appropriate fields shown below, and press Login to
access the Oracle Applications.

A menu will appear that looks similar to the following window. This window portrays your assigned list
of responsibilities within Oracle.

Search for (Purchasing, Vision Operations) in the list of responsibilities

Create Requisition

To find the Oracle purchase requisition form, go to (Requisitions > Requisitions)


The following window will appear:

Requisition Header:

Choose the Operating Unit you want to create the requisition for.
The number field will automatically populate after the purchase requisition is completed
correctly and saved.
Optionally enter a description for the requisition.
For the Type select Purchase Requisition.
You will notice that the preparer field is already populated with your name.
Next to Total:
o First field shows the currency
o Second field calculate the total amount of the requisition lines.

Requisition line:

You have to enter at least on line for the requisition


In each line you have to specify:
o Line Number and Type (ex: goods)
o The item Category, Description, UOM, Quantity (above Zero) and Price

Note: You can use the Catalog button to open Supplier Item Catalog Window The Supplier Item
Catalog provides a simple mechanism for locating items and their source information for creating
requisition lines.

Bottom Section of the Purchase Requisition

The Destination Type will be populated with Expense, Inventory or Shop floor depending on the
item or category you select.
Requestor will default with your name.
Supplier and Supplier site could be suggested by you or defaulted when you choose an item
from Catalog, or the item you selected follows a Sourcing Rule.

Distributions

Navigate to the Distributions window by selecting the Distributions button in the Requisitions
window:
The Quantity field will have the quantity entered for the line; you can separate it into multiple
distribution lines.
Charge Account will be defaulted, and cannot be changed if the Destination type is Inventory
Enter the GL Date that you want to use when you reserve funds. The default is the current date.
Note: this should be done for each Requisition line individually.
Once you complete your purchase requisition, save your work, then you must approve it yourself and
then submit it for further approval if necessary.
Look at the Number field in the header; you will see that a Requisition number has been generated.
Write it down.

To approve the requisition yourself, simply click on the Approve button at the bottom of the
Requisition window:

Check the Reserve Check Box.


Click Ok
Check the Submit for Approval Check Box.
Optionally choose a Transmission method
Click Ok

Requisitions Summary
Use the Requisition Headers Summary to view requisition header information. Drill down to view
requisition line and distribution information.

Go back to the navigator

Choose Requisitions > Requisitions Summery

Find Requisitions window will open


Click Clear Button to clear all fields
In the Operating Unit select the one you chose earlier for the requisition.

Enter the requisition number, or any search criteria you prefer to query your req.
Click find, and the Requisition Summery window will open listing the requisitions that meet your
search criteria.

This window views requisition header information, but you can query line and distributions
information from buttons bellow or from Tools in the query menu.
Click Open Button to update requisitions information
To view requisition action history, select the requisition then go to Tool > View Action History.

Log out from this User and login again by the next approver User.

From the Worklist click on the text that says Purchase Requisition (req. number) requires approval,
a Web page will open:

This window shows requisition lines and approval sequence.


You can approve, reject or reassign this requisition.
Click on approve to continue the cycle

Repeat these steps for all approvers

Login by the User you made the requisition with.


Check the Worklist for the approval of your requisition, a message will show saying Purchase
Requisition (req. number) has been approved.

Create Request for Quotation


A Request for Quotation (RFQ) is a formal request sent to the suppliers to find the pricing and other
information for an item or items. Based on the information supplied, the supplier quotes a quotation
against the RFQ form.
In general, RFQs are created before purchasing any item to actually know the price quotes from one or
more suppliers.

Auto-Create RFQ from Requisition

From the Main Menu navigate to Purchasing, Vision Operations > AutoCreate
Find requisition Lines window will open:

First clear all fields by clicking on the Clear Button


Enter Your search criteria to find your requisition
The following requisition pool will open:

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This window will show all requisition lines that meet your search criteria.
Select the requisition lines you want to include in the RFQ
Choose RFQ as the Document Type
Click on Automatic Button

RFQ Form

New document window will open showing some fields that will be defaulted in the RFQ
Click Create, to open the RFQ form:

You will notice that most fields are defaulted from the requisition.
For the Type field select Bid RFQ for Standard POs, Catalog or Standard for Blanket PA.

RFQ Suppliers

To select the suppliers you want to send them the RFQ, click on Suppliers Button

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A window will open that allows you to enter the suppliers and their sites.

RFQ Shipments

From the RFQ window click on Shipments to open the Shipment Form:

For each line on the RFQ you can create multiple shipment lines.
Indicate the UMO, quantity, Price, Receiving Organization and where to deliver the goods.
Make sure that the sum of quantities of shipment lines equals the quantity in the RFQ line.

After you complete the RFQ change the Status in the header to Active ( required for reporting
only)

Save your work

Note that RFQ doesnt have an Approve Button.

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Create Quotation
A quotation is a suppliers response to RFQ. In this article we will discuss how a quotation can be
prepared from RFQ form.

Copy Quotation

While you are on the RFQ window, go to Tools and select copy
Notice that it didnt ask you where to copy the RFQ information; it automatically choose
Quotation (because it is the only option)
The Copy Document window will open:

Decide if you want to copy the entire RFQ, only the header, or only the lines of the RFQ.
The number of Quotation will be generated automatically
Choose the Quotation type from action

Note that the quotation type depends on RFQ Class which means:
Class

Type

Catalog

Catalog
Standard

Bid

Bid

In the Supplier field choose a Supplier from the ones you selected on the RFQ.
The supplier site will default after choosing a supplier unless you selected more than one site for
that supplier.
Click ok, then the system will show you the following Note:

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Click Ok To continue to Quotation Window

Quotation Form

The Quotation will have the almost the same form and fields as the RFQ, but there are some
differences:
o The Number of RFQ you copied
o Supplier and Supplier site you entered in the New Document window
o Approve Button
Review the quotation details and edit any necessary update.

Quotation Shipments

Click on Shipments Button

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The shipment tab:


o Decide the organization and the site to ship the goods
o After saving your work you cannot change the organization in the shipment line
o You can create multiple shipment lines for the same quotation line.

The More tab:


o

o
o

Enter the Receipt Close Tolerance percent for your shipments. Purchasing automatically
closes a shipment for receiving if it is within the receiving closing tolerance at the
receiving close point.
Enter the Invoice Close Tolerance percent for your shipments. Purchasing automatically
closes a shipment for invoicing if it is within the invoicing closing tolerance at billing.
Select one of the following options for Match Approval Level:
Two-Way: Purchase order and invoice quantities must match within tolerance
before the corresponding invoice can be paid.
Three-Way: Purchase order, receipt, and invoice quantities must match within
tolerance before the corresponding invoice can be paid.
Four-Way: Purchase order, receipt, accepted, and invoice quantities must match
within tolerance before the corresponding invoice can be paid.

Save your work


Click on the Approve button, to approve only the shipment lines.

Change the status to Active


Save your work
Click on Approve Button; note that it does not have any approval sequence. But you need to
approve quotation information if you want to let your requestors or buyers reference it on
purchase orders or requisitions. The following window will open:

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Select to either to either Unapprove or approve the quotation.


In the first field enter the Type of Purchase documents that can use this quotation
as a reference
The reason you approved this document
The approver field will defaulted by the buyer name
Click Ok, and the following Note will show up

When you click ok it will return you to the RFQ form.


Keep repeating these steps until all suppliers quotation are entered
Approve the quotations you want to use later in purchase documents
If you tried to enter a quotation again with the same supplier and supplier site the
System will not allow you to continue and display this Error:

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Create Purchase Order


A Purchase order is a commercial document and first official order issued by the buyer to the
supplier, indicating types, quantities, and agreed prices for products or services the supplier will provide
to the buyer.
Basically, there are four types of Purchase Orders:
Standard Purchase Used for One-time purchases for goods and services.
Here you know the item, price, payment terms an
Order
delivery schedule
Planned Purchase Created when you have long-term agreement with the
supplier. You must specify the details of goods and
Order
services, payment terms and the tentative delivery
schedule
Blanket Purchase Created when the details of items and services, payment
terms are known but not specific about the delivery
Agreement
schedule
Contract Purchase Created when the terms and conditions of a purchase
Agreement
are known but specific goods and services are not.
Lets create a Standard Purchase Order.

Auto-Create PO from Requisition

From The navigator menu Choose AutoCreate


Find requisition Lines window will open:

First clear all fields by clicking on the Clear Button


Enter Your search criteria to find your requisition

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The following requisition pool will open:

This window will show all requisition lines that meet your search criteria.
Select the requisition lines you included in the previous RFQ
Choose Standard PO as the Document Type
Click on Automatic Button

Purchase Order Form

New document window will open showing some fields that will be defaulted in the PO
Click Create, to open the PO form:

As what happened before most fields are automatically defaulted from the requisition.
To reference the line price from the quotation you approved, click on Catalog button, the
Search supplier Item catalog window will open:

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Notice that some of the fields are already filled; for the field of operating unit, Commodity and
Item are dimmed and can only be changed from the PO window.
Enter your search criteria and click find, to open Supplier Item Catalog:

There are four regions for this window, but Function Security can be used to determine whether
a user will be able to see all of them. The regions are:
o Negotiated Sources: Long term agreements with a supplier that support repetitive buys.
o Prior Purchases: Actual past buys.

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o Sourcing Rules.
o Requisition Templates.
If you want to search for a quotation buy its number go to Folder from the special menu and
select Show field the following window will show:

Type Document in the Find field, click Ok


Now check the changes in the Catalog window

Click Select, go back to the PO window

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PO shipments

Click on Shipments Button

The shipment tab:


o Decide the organization and the site to ship the goods
o After saving your work you cannot change the organization in the shipment line
o You can create multiple shipment lines for the same quotation line.
The More tab:

o
o

Enter the Receipt Close Tolerance percent for your shipments. Purchasing automatically
closes a shipment for receiving if it is within the receiving closing tolerance at the
receiving close point.
Enter the Invoice Close Tolerance percent for your shipments. Purchasing automatically
closes a shipment for invoicing if it is within the invoicing closing tolerance at billing.
Select one of the following options for Match Approval Level:
Two-Way: Purchase order and invoice quantities must match within tolerance
before the corresponding invoice can be paid.
Three-Way: Purchase order, receipt, and invoice quantities must match within
tolerance before the corresponding invoice can be paid.
Four-Way: Purchase order, receipt, accepted, 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.
Receipt: Payables must match the invoice to the receipt.

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PO Receiving Controls

Click on Receiving Controls Button on the Shipments window, to open the Receiving Control
window:

Select the Tolerance percent, this tolerance will affect the matching in the Match approval level.
Enter the default Receipt Routing that you assign goods: Direct Delivery, Standard Receipt, or
Inspection Required.
o If you select Inspection Required, the match approval level will automatically change to
4-Way
o Please Choose Inspection Required, to cover all receiving available processes.

Approve
Check Reserve
Ok
Check Set for Approval
Ok

Same as Requisition Approval

Purchase Order Summary


Use the Purchase Order line Summary to view requisition lines information. Drill down to view PO
shipments and distribution information.

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Go back to the navigator

Choose Purchase Order > Purchase Order Summary


Find Purchase Order window will open

Click Clear Button to clear all fields


In the Operating Unit select the one you chose earlier for the PO.
Enter the PO number, or any search criteria you prefer to query your PO.
Click find, and the Purchase Order Summery window will open listing the Purchase documents
that meet your search criteria.

This window views PO lines information, but you can query Shipments and distributions
information from buttons bellow or from Inquire in the query menu.

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Click Open Button to update POs information


To view PO action history, select the PO then go to Inquire > View Action History.

Login to the next approvers in the approval sequence, to approve the PO.
Go back to the first User and make sure that the PO is approved; either by checking the Worklist
or by viewing the Action history for the PO.

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Create Receipt
Receiving Process signals that goods ordered on the purchase order have arrived
Go back to the navigator

Choose Receiving> Receipts


First you have to choose the receiving organization, from the Organization window:

Select the Organization you entered in the Shipment line for the PO line.
Then a Find Receipt window will open.

Enter your search criteria to find the purchase order you made earlier.
Click find to open the Receipt form:

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Receipt Form

As you can see the header is separated from the Receipt, minimize the Receipt Header for now

To enter receipt line information:

Purchasing opens the Receipts window and displays all shipments that meet the search criteria
In the lower part of the screen, Purchasing displays defaulted information from the PO, but the
cannot be changed

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Select the line you want to receive.


If a material shortage exists for the item, a message appears..
Purchasing displays the Quantity due for the shipment. If you change the unit of measure, the
receipt quantity is adjusted to reflect the new unit of measure. You can override this value if you
are recording a partial receipt or an over-receipt. Depending on your receiving options,
Purchasing either ignores over-receipts, displays a warning message when you try to receive
more items than you ordered, or prevents you from receiving quantities over your receipt
tolerance.
Enter the UOM of the item you are receiving.
Enter the Destination Type: Receiving, Expense, Inventory, or Shop Floor. This determines the
final destination of the received items.
You may or may not change the Destination Type depending on the profile option
Enter the receiving Location.
For the Inventory destination type, enter the Subinventory into which the goods will be
delivered, and enter the stock Locator if needed
Navigate to the Currency tabbed region.
o You can update exchange rate information on the receipt only if you perform invoice-toreceipt matching (an Invoice Match Option of Receipt is chosen for the shipment in the
purchase order Shipments window).
o These fields are blank and disabled if there is no exchange rate-that is, if the purchase
order is not in a foreign currency.

Note: The Currency and the Rate Type also default from the purchase order, but cannot be changed.

After you finish entering the wanted details in the receiving lines, press on the Header button.
Select New Receipt and save your work.
A receipt number will generate. The Quantity and Location fields in receiving lines will be
dimmed and cannot be changed.

Receiving Transaction
Go back to the navigator

Choose Receiving > Receiving Transactions


Find Receiving Transactions window will open

Enter the operating unit and your receipt number, click find.
Receiving Transactions Summery window will open

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The receiving lines you entered earlier will show


select the wanted lines, and click Inspect

Check them, and then save.


Select Accept or Reject to describe the action you are taking in a line.
Enter the Quantity accepted or rejected. Purchasing displays the uninspected quantity as the
default.
Note: In this example we will accept 18 units and reject 2 units.
Click Ok, save your work

Click on the query icon


The Find Receiving Transaction window will open.
Enter the same receipt number, click find.
Notice the changes in the Receiving window

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Check the accepted quantity, and save.

Return Rejected items


Go back to the Navigator

Choose Receiving > Returns


Search for your receipt

Enter the return Quantity. Purchasing selects the line and places a check in the line selector
checkbox.

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For Return To Supplier transactions, Purchasing reopens the associated purchase order for the
return quantity by reducing the original receipt quantity.
Save your work

Receiving Transaction Summery


Use the Receiving Transactions Summary to find summary and detail information for receiving
transactions.
Go back to the Navigator

Choose Receiving > Receiving Transactions Summary


Enter a search criteria to find you receipt

The window will display the receipt header information.


Click on Transaction, to see the details of the transactions made on the receipt

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Make sure that everything is going as intended.


You can do this step at any point in the receiving process

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