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Procure to Pay Fundamentals
Priyanka Bali
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Key Terminologies 20XX
Purchase Order
Receiving
Invoicing
Supplier
Sourcing
Quotation
Payment
Demand
Supplier Performance
Payment
Requisition
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EBS Oracle
Procurement
Suite iProcurement
Purchasing
iSupplier Portal
Services Sourcing
Procurement
Procurement Supplier BI for
Contracts Network Procurement
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Demand Source
Purchase Request for Supplier Quotation
requisition quote (RFQ)
Order Receive Pay
Purchase order Receipts Payment
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Demand
The procurement process generates and manages requests for the purchase of goods. The demand for purchase
items may be a one-time event or may recur in either predictable or random time intervals.
Source
The procurement sourcing process covers the business activities related to the search, qualification, and selection of
suitable suppliers for requested goods and services.
Order
The procurement ordering process includes purchase order placement by the buying organization and purchase order
execution by the supplying organization.
Receive
The receipt process acknowledges that a purchase order has been duly executed.
Pay
The payment process consists of those activities involved in the payment for ordered goods and services.
Presentation Title 6
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A request or a demand for something
A purchase requisition is an internal document used by employees to inform department managers
about the resources they need who in turn will inform the purchasing department
Demand: Requisitions
Requisitions represent demand for goods or services. Whether you want to provide online
requisitions to everyone in the organization or limit the number of users who have access to
the system, Oracle Purchasing is flexible enough to meet the needs of your organization. With
online requisitions, you can centralize your purchasing department, source your requisition with
the best suppliers, and ensure that you obtain the appropriate management approval before
creating purchase orders from requisitions.
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Demand
Other Systems
Inventory WIP ASCP Order Mgmt
Import/reschedule
requisitions
Internal
Order Mgmt
sales order
Approval
Manually Requisition
create Requisition
pool PO
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• Ensuring need before placing Purchase Orders
• Avoid duplicate orders
• Consolidate all requests so that combined ordering is done and get volume benefits
• They prevent miscommunication
• Fraud is prevented
• Facilitate Financial Audits
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Requisition Supplier
pool
Print/Send RFQ
Manual
Quotation
RFQ
Supplier
lists Oracle Sourcing
or iSupplier Portal
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Source: RFQs and Quotations
Oracle Purchasing provides you with request for quotation (RFQ), and quotation features to handle
your sourcing needs. You can create an RFQ from requisitions, match supplier quotations to your
RFQ, and automatically copy quotation information to purchase orders. Oracle Purchasing provides
complete reporting to control your requests for quotations and evaluate supplier responses.
Quotations can be:
Entered manually
Copied from an RFQ
Imported using the Purchasing Documents Open Interface
Imported using the e-Commerce Gateway
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Requisition RFQ Quotation
Supplier
Purchase
order Receipts Returns Payment
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Purchasing Use of Supplier Information
Supplier information is a vital component of Oracle Purchasing. You must define a supplier before
performing most activities within Oracle Purchasing. The following examples list the areas in which you
use suppliers.
A recommended supplier is optionally entered on a requisition.
A supplier is needed to send a request for quote.
That same supplier is used when entering a quotation.
Purchase orders need supplier information.
You receive goods or services from a supplier.
You return goods to a supplier.
You must pay the supplier for the goods or services purchased.
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Your
Purchase Suppliers
Company requisition
Request for quote
(RFQ)
Quotation or
negotiation
Purchase
order
Receipts and
returns
Invoices and
payments
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A purchase order, or PO, is an official document issued by a buyer committing to pay the
seller for the sale of specific products or services
AutoCreate Manually
create
Requisition pool Approve
PO
Accept Revise Control
Maintain documents
Receive Match invoices
against PO against PO
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• Legal Protection
• Help track budget and expenses
• Facilitate Tracking of expected materials
• Understand and Track Vendor performances
• Improve and Control Inventory and Invoice Management
• Fraud prevention
• Audit Compliance
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Receiving: this is the act of taking possession of goods in order to stage them for inspection or place them into
inventory. It can also be a confirmation of services rendered or consumables/assets received
Shipment
Supplier Transfer Inventory
Receive Deliver
Order Entry Shop floor
Internal
Inventory shipment Inspect Expense
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An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and
indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer.
Receive If appropriate, match invoice
invoices to
purchase order
PO Invoice
Enter invoice
Enter basic
information
Enter detailed
information Maintain invoices File invoices
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A payment is the voluntary tender of money or its equivalent or of things of value by one party (such as a person or
company) to another in exchange for goods, or services provided by them, or to fulfil a legal obligation.
Confirm payment batch:
Select • Confirm checks
approved • Update invoice
invoice • Payment history
Pay invoice
Format payments:
Run • Print checks
Record manual payments • Load EFT data
payment
in batch
Modify payment batch:
Create manual
payment outside Create • Remove/add invoices
Payables single • Modify payment details
payments
Create computer-
generated
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Depreciation/ Asset
Transactions
Assets General Ledger
Assets
Receivables/
Revenue/ Receipts Receivables
Payables/ Expenses/ Payments
Inventory
Activity Invoices
Payables Customers
Suppliers
Accounting
Accruals
Requisition/PO Order
Items Inventory Management
Purchasing/
iProcurement Internal Requisitions
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Receipt Journal
1 Accruals
2 Import
Purchasing GL Interface General
Ledger
Ledger Rates
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Requisition Inventory
2 1 planning
Import
Requisition
Interface
Purchasing Inventory
Categories UOMs Items Receipts
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Create Order Import
1 Internal Sales
2
Orders
Purchasing Sales Orders Order
Interface Management
3
Receive
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Requisition Interface
2 Import
1 Requisitions
Purchasing Requisition WIP
Interface
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Purchasing Assets
Categories Suppliers
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Run Release
3 Requisition
2 Planned
Import Orders
Purchasing Requisition ASCP/MRP
Interface
Launch
1 Planning
Processes
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