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Oracle P2P Cycle Training Manual

This document provides steps to guide users through the Oracle Procure to Pay (P2P) cycle, including: 1. Creating an item and defining purchasing attributes 2. Setting up requisition/PO approval workflows 3. Creating a purchase requisition and converting it to a purchase order (PO) 4. Receiving goods against the PO 5. Auto-generating an invoice and validating it for payment 6. Closing the PO after all steps are complete The document outlines the key tables and steps involved in completing the full P2P process in Oracle.

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unixisfun
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401 views25 pages

Oracle P2P Cycle Training Manual

This document provides steps to guide users through the Oracle Procure to Pay (P2P) cycle, including: 1. Creating an item and defining purchasing attributes 2. Setting up requisition/PO approval workflows 3. Creating a purchase requisition and converting it to a purchase order (PO) 4. Receiving goods against the PO 5. Auto-generating an invoice and validating it for payment 6. Closing the PO after all steps are complete The document outlines the key tables and steps involved in completing the full P2P process in Oracle.

Uploaded by

unixisfun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
  • Procure to Pay Overview: Introduces the overall process map for Oracle Procure to Pay cycle, highlighting the main steps and flow.
  • Creating the Item: Details the steps to create an item in Oracle Inventory, including navigation and template utilization.
  • Requisition/PO Approval Setup: Describes the setup of requisition and purchase order approval processes, including parameters and organization assignments.
  • Requisition Creation: Explains how to create and submit requisitions, with instructions on entering source and supplier details.
  • Purchase Order Creation: Covers the auto-creation of purchase orders from requisitions, reviewing actions and setting matching options.
  • Receipt Creation: Outlines the receipt creation process, including navigation through receiving and saving receipts against purchase orders.
  • Onhand Check: Details how to perform an onhand check using material workbench and tracking onhand quantities.
  • Material Transactions Check: Examines material transactions to view and verify transaction history and details.
  • Invoice Creation: Instructions for creating invoices in the Oracle system, including program submission and validation steps.
  • Invoice Validation: Describes the process of validating invoices, using concurrent programs for validation scheduling.
  • PO Status Check and Closure: Outlines the steps to close purchase orders once all processes are complete and verified.
  • Procure to Pay Accounting Entries: Illustrates accounting entries related to the procure to pay process, including transaction details and accounts involved.

P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

Assign the Purchasing category


From Tools- Categories

Organization assignment - Assigning it to M1 and M2.

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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.

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

4. Approval assignments
Purchasing Super User: Navigation – Setup, Approvals, Approval Assignments
Assignments are done to job which we have defined in earlier step ([Link] IR APPROVER)
I am assigning the job ([Link] IR APPROVER) to approval group (TEST APPROVAL GROUP)

5. Employee creation /job assignment

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

Click on assignment; Assign the job to the employee

Once these steps have done you should able to approve the requisition.

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

Click on distributions and enter the charge account details

Save and submit for approval

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

You can view the requisition by using requisition summary form,

From tools, you can look for view action history

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

Under auto create you can review the Action and document type, Once reviewed click on
Automatic

You will see the PO created

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

Click on Shipments to decide matching option

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

Save and click on approve the PO

Once approved you can look the action history from inquire-view action history

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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.

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

Note down the receipt number

When you save the receipts, in the background the below requests will run

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

Step#8 – Invoice Creation


Purchasing: Navigation: Submit new request
Submit program Pay on receipt autoinvoice
Pass the OU and receipt number and click submit

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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.

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

Step#10 –PO status check as closed


PO closure
Purchasing: Purchase order
Navigate to Purchase order and verify the PO is closed.

RAJU CHINTHAPATLA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88

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

RAJU CHINTHAPATLA

P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88 RAJU CHINTH (http://oracleapps88.blogspot.com/)APA
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88 Step#1 - Creating the Item Inventory Super User - Navig
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88 Assign the Purchasing category From Tools- Categori
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88 Please note here In the Vision Demo instance, the P
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88 Step#2 Requisition/PO Approval setup By default requisi
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88 2. Define job Purchasing Super User: Navigation – Set
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88 4. Approval assignments Purchasing Super User: Naviga
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88 Click on assignment; Assign the job to the employee
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88 Step#3 – Requisition Creation Purchasing: Navigation: R
P2P – Oracle Procure to Pay Cycle Training Manual OracleApps88 Click on distributions and enter the charge account deta

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