Procure 2 Pay Cycle in Oracle Apps R12

Here in this post, I tried to explain the steps involved in Procure to Pay
Cycle. This is a pure functional Stuff and helps you to understand the
navigation steps.
I tried to keep as simple as Possible for clear understanding. The
screenshots given below are taken from R12.1.1 apps instance
Stage 1: Choosing an Item

Let us choose an item to be procured in our example.

Go to Purchasing Responsibility and follow the below navigation to
check for the suitable item.
The item picked for our example should be purchasable item as above.
Click on tools and choose “Categories” to view the below screen.

Stage 2: Creation of Requisition

Follow the below Navigation to reach Requisition Form.

Create a new Requisition for the item viewed in Stage 1.

Click on Distributions to View the charge Account.

Save and Submit for Approval

Now note down the Requisition number and open the “Requisition
Summary Form” to view the status of it. For our Example, Requisition
number is: 14855

Stage 3 : Checking the Status of Requisition

Query for the Requisition Number and click Find.

Here for our example purpose, I kept the submitted and approved
person has same and hence it shows the status as approved.

To see the approval status, please follow the below navigation.

Stage 4 : Creation of Purchase Order

For creating a Purchase order, let us use the “Autocreate Documents”

Form. Follow the below Navigation

Query for the Requisition

Click on Automatic as shown in the above figure to create a Purchase
Order

Click on “Create” button to create a Purchase order

View the shipment screen to change the “Match Approval Level” to

“2-Way”.
Click the “Receiving Controls” to make sure that the “Routing” is made
as “Direct Routing”

Click Save and submit for Approval.

Note down the PO Number.

Stage 5: Creation of Receipts

Query with the Purchase order created in the above stage.

Check the check box near to the lines that are received and click save.

Click the “Header Button” to view the Receipt Number.

Stage 6: Checking the On Hand

Go to any Inventory Responsibility and follow the below Navigation

Query for our Receipt and make sure the Organization is the same as
we received.

Below screen will show that our inventory has been increased by 5
quantities.
Stage 7: Check the Material Transactions

Follow the below Navigation to reach “Material Transactions” Form

Query for the item and date as below

Below screen shows the source and transaction Type

Below screen shows you the Serial Numbers of the items received.

Stage 8: Creation of Invoice

Navigate to any Purchasing Responsibility and view  Requests

Submit the below requests by providing the Receipt number as
Parameter to create an invoice.
Check the status of the program.

Stage 9: Checking the Invoice

Change to any Payables Responsibility and open the invoices Form.

Query for the Purchase order as below,

 Click “Actions” Button then tick the “Validate Check Box” and press
“Ok” to validate the invoice
Below screenshot will give you the status of the invoice

Stage 10: Creation of Accounting and Payment

Once invoice got approved, we can “Create Accounting” and “Create

Payments” via “Action” Button in the “Invoice Form” as we validated
the invoice.

Thus the brief description of P2P cycle came to end.

---------- o ---------
P 2 P Cycle ( PO-INV-AP )

Procure to Pay cycle-

1) Requisition creation in PO
2) Purchase order creation (Manual or Automatic)
3) Receipt creation
4) Invoicing in AP
5) Payment in AP

GO TO PURCHASING VISION OPERATION RESPONSIBULITY

REQUISITION
|
RFQ
|
QUOTATION
|
PURCHASE ORDER
|
RECEIPTS
THEN GO TO ACCOUNT PAYABLES
AP
|
INVOICES
|
PAYMENTS
|
|----PAYMENTS REGISTER IN GL
==================================
First of All We
(1)Create a Suppliers
(2)Create a Requisition
(3)Craete RFQ Throgh AutoCreate
(4)Quatation Analysis
(5)Approved Supplier Which one is the best
(5)PO Create
(6)Receipt
(7)AP Invoice
(8)Payments
(9)Transfer To GL by Payables Transfer To GL Concurrent
Program
(10)Posted In GL
REQ--->RFQ--QT---ANALYSYS---PO--REC--INVOICE--PAYMENT--
TRANSFER TO GL---POST IN GL

purchase requisition
|
request for quotation
|
quote analysis
|
purchase order
|
receipt to purchase order
|
invoice to purchase order
|
payment to purchase order
|
transfer to GL and then post
---------------------------------------------
Procure To Pay Cycle(p2p)

|requisition
po | |
| RFQ's
| |
| quotation
| |
| PO (purchasing order)
--- |
| receipt
| |
AP-| invoice
| |
| payments
---
==============================
1. Define Item( in INV module)
2. Define Employee(in HRMS module)
3. Define Buyer(in PO module)
4. Attach buyer to your fnd user
5. Define Requisition
6. Define RFQ(Request for Quotation)
7. Define Quotation
8. Define PO
9. Define Receipt
10.Define Invoice(Primarly create term,bank account and
supplier)
11.Define Payments
12. Run the Paybles transfer to general leadger

A single Query covering P2P life Cycle

In Finance, transaction management processing is one of labor intensive task in ERP, as it
requires extensive data entry , chance are very very high for duplication/re-entry. As we
know Procure to Pay life cycle start itself from contract management till making
payment.

As we know the efficient Procure to pay process have these sub processes;

 Contract Management
 Purchase Requisitions
 Purchase Orders
 Accounts Payable - Managing invoice
 Supplier Payment

In real business world, many time when system is running external/internal auditor are
more interested in scrutiny of:

 Goods received / invoices received

 Inaccurate or duplicate vendor & material master records
 Discrepancies in payment terms
 Delays / long processing times
  Detect duplicate vendor
 Unusually large or small payments
 Unauthorized changes made to invoices
 Detect Duplicate invoice
 Detect Duplicate payment
 Approval status

Therefore, it is Inhouse ISD/Finance IT or implementing company responsibility is to

provide such kind of adhoc reporting for auditor so that they can satisfy the audit
requirement.

A 'P2P' query that made Auditors happy

It was brought by ISD team , as part year end audit for a ERP system which went live 3
month back. It was a one of requirement to display data for a particular PO which covers
data from there all 5 five phases, means a particular PO line consist of:

1. Requisition Detail
2. Purchase Order Details
3. Receiving Details
4. Invoicing Detail
5. Payment Details

Therefore thought to share this query, hope this would be great help who have such kind
of adhoc requirement from daily life.

Here is query:

SELECT
A.ORG_ID "ORG ID",
E.VENDOR_NAME "VENDOR NAME",
UPPER(E.VENDOR_TYPE_LOOKUP_CODE) "VENDOR TYPE",
F.VENDOR_SITE_CODE "VENDOR SITE",
F.ADDRESS_LINE1 "ADDRESS",
F.CITY "CITY",
F.COUNTRY "COUNTRY",
TO_CHAR(TRUNC(D.CREATION_DATE)) "PO DATE",
D.SEGMENT1 "PO NUMBER",
D.TYPE_LOOKUP_CODE "PO TYPE",
C.QUANTITY_ORDERED "QTY ORDERED",
C.QUANTITY_CANCELLED "QTY CANCALLED",
G.ITEM_DESCRIPTION "ITEM DESCRIPTION",
G.UNIT_PRICE "UNIT PRICE",
(NVL(C.QUANTITY_ORDERED,0)-
NVL(C.QUANTITY_CANCELLED,0))*NVL(G.UNIT_PRICE,0) "PO Line Amount",
(SELECT
DECODE(PH.APPROVED_FLAG, 'Y', 'Approved')
FROM PO.PO_HEADERS_ALL PH
WHERE PH.PO_HEADER_ID = D.PO_HEADER_ID) "PO STATUS",
A.INVOICE_TYPE_LOOKUP_CODE "INVOICE TYPE",
A.INVOICE_AMOUNT "INVOICE AMOUNT",
TO_CHAR(TRUNC(A.INVOICE_DATE)) "INVOICE DATE",
A.INVOICE_NUM "INVOICE NUMBER",
(SELECT
DECODE ( X.MATCH_STATUS_FLAG, 'A', 'Approved')
FROM AP.AP_INVOICE_DISTRIBUTIONS_ALL X
WHERE X.INVOICE_DISTRIBUTION_ID = B.INVOICE_DISTRIBUTION_ID)"Invoice
Approved?",
A.AMOUNT_PAID,
H.AMOUNT,
I.CHECK_NUMBER "CHEQUE NUMBER",
TO_CHAR(TRUNC(I.CHECK_DATE)) "PAYMENT DATE"
FROM AP.AP_INVOICES_ALL A,
AP.AP_INVOICE_DISTRIBUTIONS_ALL B,
PO.PO_DISTRIBUTIONS_ALL C,
PO.PO_HEADERS_ALL D,
PO.PO_VENDORS E,
PO.PO_VENDOR_SITES_ALL F,
PO.PO_LINES_ALL G,
AP.AP_INVOICE_PAYMENTS_ALL H,
AP.AP_CHECKS_ALL I
WHERE A.INVOICE_ID = B.INVOICE_ID
AND B.PO_DISTRIBUTION_ID = C. PO_DISTRIBUTION_ID (+)
AND C.PO_HEADER_ID = D.PO_HEADER_ID (+)
AND E.VENDOR_ID (+) = D.VENDOR_ID
AND F.VENDOR_SITE_ID (+) = D.VENDOR_SITE_ID
AND .PO_HEADER_ID = G.PO_HEADER_ID
AND C.PO_LINE_ID = G.PO_LINE_ID
AND A.INVOICE_ID = H.INVOICE_ID
AND H.CHECK_ID = I.CHECK_ID
AND F.VENDOR_SITE_ID = I.VENDOR_SITE_ID
AND C.PO_HEADER_ID IS NOT NULL
AND A.PAYMENT_STATUS_FLAG = 'Y'
AND D.TYPE_LOOKUP_CODE != 'BLANKET';