P2P - Oracle Procure To Pay Cycle Training Manual

P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88
RAJU CHINTHAPATLA
Step#1 - Creating the Item

Inventory Super User - Navigation: Items/Master Items
Enter item name and description
Table affected – MTL_SYSTEM_ITEMS_B
Copy from template tools – copy from –purchased item
Ensure it is Purchased and Purchasable under Purchasing tab
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Assign the Purchasing category

From Tools- Categories
Organization assignment - Assigning it to M1 and M2.
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Please note here

In the Vision Demo instance, the Purchasing and Order Management Attributes are controlled at
Item Master level. By choosing the attributes at the item master level (V1) automatically sets these
attributes for all organizations which are assigned (ex. M1 and M2). By choosing the attributes at
the Item Master level - they are already set for all inventory organizations assigned.
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Step#2 Requisition/PO Approval setup

By default requisition will not get approved it will in incomplete status, you will need to define
approval in purchasing.
To get this tutorial going I have defined position based approval in purchasing adding those steps
1. Operating unit parameters

Purchasing Super User: Navigation – Setup, Organizations, Financial parameters
Uncheck the Use approval hierarchies check box
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2. Define job
Purchasing Super User: Navigation – Setup, Personnel, Jobs
I have defined job as TEST IR APPROVER
3. Define Approval Group

Purchasing Super User: Navigation – Setup, Approvals, Approval Group
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4. Approval assignments
Purchasing Super User: Navigation – Setup, Approvals, Approval Assignments
Assignments are done to job which we have defined in earlier step (TIR.TEST IR APPROVER)
I am assigning the job (TIR.TEST IR APPROVER) to approval group (TEST APPROVAL GROUP)
5. Employee creation /job assignment
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Click on assignment; Assign the job to the employee
Once these steps have done you should able to approve the requisition.
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Step#3 – Requisition Creation

Purchasing: Navigation: Requisitions/Requisitions
Select the type as Purchase Requisition
Enter source as supplier and site
Table affected – PO_REQUISITION_HEADERS_ALL (segment1 is requisition number),

PO_REQUISITION_LINES_ALL
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Click on distributions and enter the charge account details
Save and submit for approval
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You can view the requisition by using requisition summary form,
From tools, you can look for view action history
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Step#4 – Purchase order Creation

Purchasing Super User: AutoCreate
The PO will be created using auto create by finding the requisition number.
Table affected –
PO_HEADERS_ALL,
PO_LINES_ALL,
PO_DISTRIBUTIONS_ALL,
PO_LINE_LOCATIONS_ALL
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Under auto create you can review the Action and document type, Once reviewed click on
Automatic
You will see the PO created
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Click on Shipments to decide matching option
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Save and click on approve the PO
Once approved you can look the action history from inquire-view action history
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Step#5 – Receipt Creation

Purchasing: Navigation: Receiving/Receipts
Find expected receipts by entering purchase order number (6055 in this case)
Check the box and enter the subinventory where you want to receive this PO and save the receipt.
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Note down the receipt number
When you save the receipts, in the background the below requests will run
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Step#6 – Onhand check

You can see onhand using material workbench
Inventory: Navigation: On- hand, Availability
Table affected – MTL_ONHAND_QUANTITIES_DETAIL
Pass the receipt number to look for an onhnad
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Step#7 – Material transactions check

Inventory: Navigation: Transactions/Material Transactions
You will see the PO receipt is being made
Table affected –
RCV_SHIPMENT_HEADERS (shipment_num is oracle delivery number,
SHIPMENT_LINE_STATUS_CODE shows fully received partially received)
RCV_SHIPMENT_LINES (RCV_SHIPMENT_HEADERS.shipment_header_id, to_organization_id,
quantity_shipped, quantity_received, rcv_transactions and mtl_material_transactions- shows the
receiving transactions
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Step#8 – Invoice Creation

Purchasing: Navigation: Submit new request
Submit program Pay on receipt autoinvoice
Pass the OU and receipt number and click submit
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Step#9 – Checking the Invoice under payables

Payables: Navigation: Invoices/Entry/Invoices
Create Payables invoice by entering the PO number (6055) and click find
Table affected –
AP_INVOICES_ALL
AP_INVOICE_DISTRIBUTIONS_ALL
You will see the invoice as never validated

Click on actions and say validate
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Alternatively, if can have the “Invoice validation” concurrent program scheduled to run at
particular interval which also can validate invoices.
Or you can pass the invoice number to it as well.
Once validated, the status will be now validated.
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Step#10 –PO status check as closed

PO closure
Purchasing: Purchase order
Navigate to Purchase order and verify the PO is closed.
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Step#11 –Procure to Pay Accounting entries

Which account is
Transactions DR CR Notes pulled Control Options
Requisition
1 Creation
No Accounting
2 PO Creation
No Accounting
3 Receipt
Receiving Option
Receiving A/c 100 At PO Price Setup ORG
Inventory Org
AP Accrual A/c 100 At PO Price Setup ORG
4 Delivery of Items
Sub-inventory Org Level A/c
Raw Material Sub At Standard Material A/c SUB- will
Inventory A/c 80 Cost Setup INV get defaulted
Purchase Price Diff between Inventory Org
Variance A/c 20 PO - Stnd Setup ORG
Receiving Option
Receiving A/c 100 At PO Price Setup ORG
Invoice matching
5 with PO
AP Accrual Receiving Option
Liability A/c 100 At PO Price Setup ORG
Invoice Price Diff between Inventory Org
Variance A/c 10 Invoice - PO Setup ORG
Financial
Options/Supplier
AP Liability A/c 110 AT INV Price Site
On making
6 Payment
Financial
At Invoice Options/Supplier
Liability A/c 110 Price Site
At Invoice
Cash 110 Price Bank A/c Setup
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P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

Step#1 - Creating the Item

Copy from template tools – copy from –purchased item

Ensure it is Purchased and Purchasable under Purchasing tab

Assign the Purchasing category

Organization assignment - Assigning it to M1 and M2.

Please note here

Step#2 Requisition/PO Approval setup

1. Operating unit parameters

3. Define Approval Group

5. Employee creation /job assignment

Click on assignment; Assign the job to the employee

Step#3 – Requisition Creation

Table affected – PO_REQUISITION_HEADERS_ALL (segment1 is requisition number),

Click on distributions and enter the charge account details

Save and submit for approval

You can view the requisition by using requisition summary form,

From tools, you can look for view action history

Step#4 – Purchase order Creation

You will see the PO created

Click on Shipments to decide matching option

Save and click on approve the PO

Step#5 – Receipt Creation

Note down the receipt number

Step#6 – Onhand check

Pass the receipt number to look for an onhnad

Step#7 – Material transactions check

Step#8 – Invoice Creation

Step#9 – Checking the Invoice under payables

You will see the invoice as never validated

Once validated, the status will be now validated.

Step#10 –PO status check as closed

Step#11 –Procure to Pay Accounting entries

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