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Oracle iProcurement: P-Card

Functional Setup
An Oracle White Paper
August 2000
Revised October 2002
Oracle iProcurement: P-Card
Functional Setup

ABSTRACT
The Oracle iProcurement (IP) product enables corporations to acquire goods and
services through the Internet. A procurement card (P-Card) is a corporate credit
card issued to an employee to purchase items directly from a supplier.
P-Card orders are approved and transmitted to the supplier like any other order.
When you order an item, the Billing page (or Order Information page, if you are
using Power Checkout) lets you select a P-Card number if you have one. P-
Cards must be set up for each employee. You cannot enter a number yourself. If
a P-Card is set up for you, you will see your P-Card number in the pull-down P-
Card Number menu on the Billing page (or Order Information page) when you
place an order.

CONTENTS
1) Oracle Application Modules Needed for P-Card Functionality
2) Supplier Setup
3) P-Card Program Setup
4) Credit Card Setup
5) Requisition Creation in iProcurement Using P-Card
6) P-Card Validation
7) Encumbrance and Receiving for P-Card transactions.
8) Features included in 10.7, 11.0.3 and 11i
9) Known Issues and Resolutions

Oracle Application Modules Needed for P-Card Functionality


You will need to implement a combination of several Oracle Applications
modules (e.g. Oracle Purchasing, Accounts Payable, General Ledger, etc.).
iProcurement is the core module of the procurement process. For P-Card
purchase orders, the Invoice Match option on the Shipment form should be
disabled with a Null value. P-Card purchase orders cannot be matched to
invoices or receipts. Make sure to set up Suppliers as P-Card enabled suppliers.

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Supplier Setup
Set up your supplier and P-Card enabled suppliers’ sites. The P-Card check box
that enables P-Card use appears in the core Purchasing application under Supply
Base àSuppliers. Select a supplier site by clicking the Site button in the lower
right hand corner of the Supplier screen. The P-Card checkbox appears in the
General region on the supplier site screen.

Fig. 1: Supplier Setup

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Fig. 2: P-Card Supplier Site Setup

P-Card Program Setup


Set up your supplier card program, profile, code sets and cards as described
below. In the following P-Card examples, employee name Nag Dasari
(NDASARI) is the buyer.

1. Card Brand: Oracle Express


Expiration Date: 10-June-XXXX
Requisition Transaction Limit: $1000.00
Card number: 3997-4567-1111-3212

Card Brand: Oracle Express


Expiration Date: 10-Aug-XXXX
Requisition Transaction Limit: $5000.00
Card number: 3123-4561-2222-7892

Credit Card Setup


1. In the Credit Card Code Sets window, create credit card code sets. Enter
card codes, such as Standard Industry Classification (SIC) codes, or
Merchant Category Codes (MCC). Assign a default GL account to a card
code.

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Fig 3: Credit Card Setup

Fig 4: P-Card association with


Employee and Supplier and setting up of
Maximum and Minimum amount transactions

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2. In the Credit Card Programs window, define your credit card program,
including the card issuer, card type, and credit card code set. In this
window you can also specify transaction statuses for which you will not
create invoice.

3. In the Credit Card GL Sets window, define GL account sets. A GL account


set is a list of values that cardholders can use to change accounts during
transaction verification.
4. In the Credit Card Profiles window, define credit card profiles that you
assign to credit cards. Attributes of a credit card profile include credit card
program, GL account set, default GL account, exception clearing account,
employee verification options, and manager approval options. In addition
you can record restrictions for credit card codes.

Fig 5: Setup of Credit Card Profiles

5. In the Credit Cards window, assign a card to a cardholder and assign a credit
card profile to the card.

6. Set up the Credit Card Transaction Employee Workflow.

7. Set up the Credit Card Transaction Manager Workflow.

8. In the Users window, assign a Credit Cards responsibility and the Workflow
responsibility to employees.

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There are four levels of the Credit Cards responsibility that you can define
for employees:

1. Credit Cards - Assign this responsibility for employees that should have
access to records for one or more employees. The securing attribute for the
seeded Credit Cards responsibility is ICX_HR_PERSON_ID. To allow a
Web user the ability to verify open credit card transactions and to review a
credit card transaction history for more than one employee, define an
additional securing attribute value (ICX_HR_PERSON_ID).

2. Credit Cards (Card Profile Administrator) - Assign this responsibility for


the employee that is the Administrator in the Credit Card Profiles window.
This responsibility has access to all records for a Credit Card Profile.
Attention: To assign this responsibility, you must first define the employee
name for Administrator in the Credit Card Profiles window. You must also
define the Securing Attribute in the Users window to
AP_CARD_PROFILE_ADMIN_ID. You then assign the EMPLOYEE_ID
for the profile administrator as the Securing Attribute Value.

3. Credit Cards (Program Administrator) - Assign this responsibility for the


employee that is the Administrator in the Credit Card Programs window.
This responsibility has access to all records for a Credit Card Program.
Attention: To assign this responsibility, you must first define the employee
name for Administrator in the Credit Card Programs window. You must also
define the Securing Attribute in the Users window to
AP_CARD_PROGRAM_ADMIN_ID. You then assign the EMPLOYEE_ID
for the program administrator as the Securing Attribute Value.

Verify Open Transaction. Use to update the status, cost center, account, and
description of a transaction. You can also split a transaction.

View Transaction History - Use to review a transaction history. The seeded


Workflow responsibility includes the following functions:

4. View Notifications - View notifications sent by Workflow.


View Progress: View the progress of the workflow process for a selected
document. The securing attribute for the seeded Workflow responsibility is
ICX_HR_PERSON_ID.

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Creating a Requisition using P-Card in iProcurement (SSP 5)

Oracle Self-Service Purchasing automatically flags shopping cart lines for


Procurement Card (P-Card) payment and defaults in the P-Card number
depending on requester and supplier profiles. After an internal order has
been created and approved, a P-Card order is generated and transmitted to
the supplier. The supplier then transmits P-Card information to the card
issuer who, in turn, sends a consolidated statement comprised of transaction
data to Accounts Payable.

Fig 6: iProcurement (SSP 5) Homepage

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Billing Information of P-Card

Make sure the drop down list shows the last 4-digits of the P-Card
associated to the employee. Oracle Self-Service Purchasing allows the user
to optionally specify a status of Taxable or Tax-Exempt (see fig. 8) for the
requested item (overriding the system-determined default value). The status
indicated on the requester’s order line is carried forward to the purchasing
document that is created from the requester’s order.

Fig 7: Billing Information showing


P-Card being billed for the
corresponding transaction

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Validation

The following screen shows the warning when the transaction exceeds the
amount limit associated with the P-Card.

Fig 8: Validation of the amount limit for P-Card transaction

Encumbrance and Receiving for P-Card transactions

The procurement card information itself is transmitted to the supplier


through e–Commerce Gateway, through the outbound purchase order
transaction. Upon receiving the purchase order, the supplier transmits the
procurement card information to the procurement card issuer (for example, a
bank). The credit card issuer then sends transaction files back to Oracle
Payables, which automatically generates accounting distributions and
creates invoices to pay the issuer.
If a supplier rejects a procurement card order, the buyer can notify the
requester of the rejection. The buyer can cancel the purchase order and ask
the requester to resubmit the requisition, or re–send the purchase order using
a different form of payment.

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Procurement card purchase orders and releases can be created only from
requisition lines in iProcurement. To use procurement card purchase orders
or releases in Purchasing, you must set up procurement card functionality in
both iProcurement and Payables.

Procurement card purchase orders:


•Cannot be used with encumbrance accounting.
•Can be used for items with a Destination Type of Expense only.
•Cannot be used for documents that contain a Project number.
•Can be used for standard purchase orders or releases only.
•Are not available for invoice matching or invoice creation.
•Do not accrue on receipt.

Receiving
You receive a procurement card order like any other. However,
procurement card items do not accrue upon receipt. Payment and
accounting for procurement card orders are already handled in
Payables, which imports the credit card transaction files from the credit
card issuer. If you accrue upon receipt, Purchasing accrues upon
receipt all items except procurement card items. You cannot change the
Accrue at Receipt check box in the Shipments window for procurement
card purchase orders or releases.
Similarly, at period–end, Purchasing does not accrue or roll over
procurement card orders to General Ledger.

Invoicing
Since invoices for procurement card purchase orders are created through
credit card transaction files that are imported from the credit card issuer into
Payables, note the following:
•Procurement card purchase orders are not available for invoice matching in
Payables.
•Procurement card shipment lines are automatically closed after approval if
you use the Two–Way match approval level. (If you use Three–Way or
Four–Way match approval levels, you can still receive or inspect against the
shipment.)
•Payment on Receipt does not generate invoices automatically for
procurement card orders, even if the supplier is set up as a ‘Pay on Receipt’
site in the Supplier Sites window. A supplier site can be both a ‘Pay on
Receipt’ site and a ‘Procurement Card Site’. However, if the supplier site is
a Pay on Receipt site, invoices will be generated automatically for all orders
received from that supplier site when you run Payment on Receipt, except
those that include procurement card information.

• Advance Shipment Notices (ASNs) that contain billing information


(sometimes known as Advance Shipment and Billing Notices, or ASBNs), if
they also contain procurement card information, are not automatically
converted into invoices as they normally would be upon receipt.

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Features included in 10.7, 11.0.3 and 11i :

Features 10.7 11 11i


User Preferences Available Available Available
Changing your password -- Available Available
Direct sign-on -- Available Available
Non-catalog requests Available Available Available
Personal Favorites List Available Available Available
Corporate/Public shopping
Available Available Available
Lists
Special Item Information Available Available Available
Saving Shopping Carts Available Available Available
Power Checkout Available Available Available
Express Checkout Available Available Available
Regular Checkout Available Available Available
Checkout Defaults Available Available Available
One-Time address Available Available Available
Default Deliver-to location Available Available Available
Inventory Replenishment
Available Available Available
Requests
Procurement Card support (P-
-- Available Available
Card)
Integration with Project
Available Available Available
Accounting
Integration with Project
-- Available Available
Manufacturing
Attachments Available Available Available
Mass Updates Available Available Available
Account Generation
-- Available Available
Workflow Integration
Requisition Approval
Available Available Available
Workflow
Confirm Receipts Workflow Available Available Available
Autocreating standard PO
-- Available Available
from Contracts
Multiple Account
Available Available Available
Distributions

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Approval List Configuration Available Available Available
Finding Requisitions to
Available Available Available
Approve
Editing requisitions in
Available Available Available
approval queue
Vacation handling/reassigning
Available Available Available
to-do notifications
Copy Requisition Available Available Available
Requisition Cancellations Available Available Available
Requisition resubmit Available Available Available
Requisition withdraw -- Available Available
Emergency Requisitions -- Available Available
Requisition status (Inquiries) Available Available Available
Centralized Receiving Home
Available Available Available
Page
Receipts inquiry (history) Available Available Available
Finding Items to Receive Available Available Available
Returns and Corrections -- Available Available
Upload catalogs Available Available Available
Download templates Available Available Available
Building Table of Contents Available Available Available
Mapping Categories Available Available Available
Mapping Special Order Available Available Available
Catalog Search Available Available Available
Comparing Catalog items Available Available Available
Linkout to
Available Available Available
Suppliers/Marketplaces
E-Content Manager (Catalog
Available Available Available
authoring tool)
Retrieve Forgotten Password -- Available Available
Multi Byte Language -- Available Available
Search Based Punchout Available Available Available
OU Specific Purchasing News
Available Available Available
and Policies
MLS Compliant Loader -- -- Available
Dynamic Templates for
-- Available Available
Spreadsheets

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Suggested Buyer -- -- Available
Hazard Information -- -- Available
Express Receiving -- -- Available
iHelp Integration -- -- Available
New Punchout Architecture -- -- Available
Express (employee/location)
-- -- Available
Loader
Global Supervisor -- -- Available
Transaction Currency -- -- Available
Improved Search -- -- Available
Expense Account Exception
-- -- Available
Rules
Direct Approve and Reject -- -- Available
Estimated Tax -- -- Available
Favorite Charge Accounts -- -- Available
Contract Autosourcing -- -- Available
Grants Support -- -- Available
Enhanced Global Buyer
-- -- Available
Defaulting

Known Issues

In iProcurement, you created a procurement card with a transaction amount


for a specific user. However, when creating a requisition in iProcurement
with the P-Card established in the core application, the requisition submittal
process never validates against the P-Card limit. A requisition that exceeds
the amount of the P-Card completes without error.

Solution:
---------
Make sure the profile used for the P-Card has the Time Unit field set to
TRANSACTION:
A. From the AP Superuser responsibility, navigate to set up credit cards and
procurement card profiles.
B. Query the profile attached to your credit card. The ‘maximum amount’
field will only be validated on a requisition in Self-Service Purchasing if the
value is TRANSACTION.
C. On the list of values itself, scroll up to find the correct value. On some
forms only PERIOD and MONTHLY are displayed. By scrolling up you
will find the other codes. The actual code that performs this validation is
contained within the ReqHeader.java file as follows:

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String sqlStatement = "SELECT apcl.amount " +
"FROM ap_card_profile_limits apcl, " +" ap_cards apc " +
"WHERE apcl.profile_id = apc.profile_id" +" AND
apcl.time_unit_lookup_code = TRANSACTION'" + " AND apc.card_id = ?";

1. Entering a Purchase Order in the Purchase Order Entry Form


(POXPOEPO), the field P-Card Number is visible and accessible even
though you do not want to use the Procurement Card functionality. The P-
Card Number field is also appearing in the Purchase Order Summary Form
(POXPOVPO). This problem will only be encountered using release 11 of
the applications or higher.

Solution:
---------
There is a profile option 'PO: Use P-Cards in Purchasing' which exists only
for release 11 or higher. When this profile option is set to 'Yes' the
Procurement Card functionality will be enabled and the Procurement Card
Number fields will appear on the two forms. Setting this profile option to
'No' will ensure that the Procurement Card functionality is disabled and the
Procurement Card Number field does not appear on the Purchase Order
Entry and Summary Forms.

2. Can the Supplier/Site for a P-Card enabled PO be changed?

Steps to recreate:
-------------------
a. Enter a non-catalog requisition with supplier and site.
(supplier > site > enabled for p-card)
b. Use p-card during checkout.
c. Buyer auto-creates from core purchasing and changes the supplier
and site (that is not enabled for P-card).
d. The p-card field still holds the p-card number even the supplier
and site are not enabled for p-card

Trying to change manually the field – Error is raised “ field is protected


against update”.

Analysis
----------
Currently for a requisition line with an associated p-card, during the auto
create process, the buyer is able to change the supplier/supplier site
information. The Autocreate form restricts the change only to other p-card
enabled supplier/supplier sites (i.e. LOV for the supplier/supplier site field
shows only p-card enabled supplier/supplier sites). So the p-card
information will always apply for the supplier/supplier site on the resulting
PO document.
There is a problem on the PO Entry form (after the PO gets created) in that
there is no similar restriction on the supplier/supplier site field. So the buyer
can change it to any other supplier/supplier site, and the p-card information

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remains on the PO even if the newly selected supplier/supplier site is not p-
card enabled.

Solution: This bug is addressed and fixed in Procurement Family Pack H


(R11i.PRC_PF.H patch #2320032, R11.0.PO.H patch #1618257)

3. When a Credit Card inactive date in the Payables: Credit Cards form is
populated with a future date, the P-Card information is no longer visible
in the SSP5 billing information.

Solution:
---------
Fixed in ReqHeader.java 110.65, 115.36, available in ICX Patchset F.
(R11.0.PO.F patch #1330514) Bug 1341092

Summary

One of the most important aspects of the Distribution/Supply chain is the ability
to procure goods and services. iProcurement replaces the typical manual
procurement process with a streamlined, decentralized, electronic commerce
process that can dramatically reduce costs and time involved in doing so. P-Card
functionality gives an added advantage for procurement and receiving items with
P-Card transactions.

About The Author

Nag Dasari is a Senior Technical Analyst for E-Business Outsourcing Support


with Oracle Corporation in Orlando, Florida. He has M.S. and B.S. Degrees in
Computer Science and Engineering and has over 10 years of software industry
experience in Managing Oracle ERP applications, design/development, QA, and
in Supporting Oracle Applications.

Credits

• Oracle Purchasing User’s Guide.


• Oracle Payables User’s Guide.
• Oracle Self-Service Purchasing Implementation Manual
• Oracle Product Management/Development/Support Team who were
instrumental in identifying the issues and releasing fixes.

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Oracle iProcurement: P-Card Functional Setup
August 2000
Updated: August 2002
Author: Nag Dasari
Contributing Authors: n/a
Copyright © Oracle Corporation 2000
All Rights Reserved Printed in the U.S.A.

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only and the information herein is subject to change
without notice. Please report any errors herein to
Oracle Corporation. Oracle Corporation does not
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