Oracle Procure to Pay Process | Invoice | Procurement

Oracle Procure to Pay Process

I. P2P Process and Imp Stages II. More Detail About Each Step in the P2P Process III. Basic Steps to Create P2P Process I. P2P Process and Imp Stages

1.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. 2.Source The procurement sourcing process covers the business activities related to the search, qualification, and selection of suitable suppliers for requested goods and services. 3.Order The procurement ordering process includes purchase order placement by the buying organization and purchase order execution by the supplying organization. 4.Receive The receipt process acknowledges that a purchase order has been duly executed. For orders of

Source goods from your own inventory with internal requisitions. it will typically consist of a notification from the requester or the approving person that the service has been performed as agreed. or response from your . Create an RFQ with or without approved requisitions so that you can plan ahead for your future procurement requirements. telephone conversation. and ensure that you obtain the appropriate management approval before creating purchase orders from requisitions. match supplier quotations to your RFQ. With online requisitions. and automatically copy quotation information to purchase orders. Record supplier quotations from a catalog. You should always know who approves requisitions and whether they are in the approval. You can create an RFQ from requisitions. II.Requisitions(Demand) Requisitions represent demand for goods or services.RFQs and Quotations(Source) Oracle Purchasing provides you with request for quotation (RFQ). source your requisition with the best suppliers. you can: Identify requisitions that require supplier quotations and automatically create an RFQ. it will typically include the receipt. and review requisition information on-line. 2. receiving. you can centralize your purchasing department. Advanced Supply Chain Planning (ASCP) and Order Management May be entered manually through Oracle Purchasing windows May be entered using Oracle iProcurement May be imported from external systems With Oracle Purchasing. Quotations can be: Entered manually Copied from an RFQ Imported using the Purchasing Documents Open Interface Imported using the e-Commerce Gateway With Oracle Purchasing. inspection and delivery of the goods to inventory or to another designated location. Work in Process (WIP). Review the current status and action history of your requisitions. More Detail About Each Step in the P2P Process 1. you can: Create. 5. purchasing. For orders of services. Requisitions for goods and services: Are generated by applications like Inventory. and quotation features to handle your sourcing needs.Pay The payment process consists of those activities involved in the payment for ordered goods and services.physical goods. edit. or delivery stage.

you can buy from several different sites and send payments to several different sites. You can automate purchase document creation using the PO Create Documents workflow to automatically create a blanket purchase agreement release or a standard purchase order upon approval of a requisition. RFQ only sites. EDI. Once the document is approved. You should be able to evaluate your suppliers based on quotation information. Review. e-mail. you can override these defaults and have unique information for each site. Receive automatic notification when a quotation or request for quotation approaches expiration. The approval process checks to see if the submitter has sufficient authority to approve the purchase order. Standard purchase orders can be imported through the Purchasing Documents Open Interface in a status of Incomplete or Approved. You receive goods or services from suppliers. Once purchase orders are created. they may be submitted for approval. they are authorized to ship goods at the times and to the locations that have been agreed upon.Suppliers You must define a supplier before performing most activities within Oracle Purchasing and Payables. However. You optionally enter a recommended supplier on a requisition. Once the purchase order or release is sent to your supplier. You return goods to suppliers. purchasing sites. contract and planned. 3. it may be sent to your supplier using a variety of methods including: printed document. You can designate supplier sites as pay sites. Review quotation information online when creating purchase orders or requisitions and copy specific quotation information to a purchase order or requisition. You use that same supplier when you enter a quotation. There are several methods that can be used to create purchase orders.request for quotation. for a single supplier.Purchase Orders(Order) Oracle Purchasing supports four types of purchase orders: standard. Most supplier information automatically defaults to all supplier sites to facilitate supplier site entry. fax. Set up suppliers to record information about individuals and companies you purchase goods and services from. For example. Oracle iSupplier Portal and XML. and approve supplier quotations that you want available to reference on purchase orders and requisitions. You need supplier information for purchase orders. analyze. You must pay the supplier for the goods or services purchased. 4. blanket. Purchase documents may be created: By buyers using the AutoCreate window By importing them using the Purchasing Documents Open Interface . You can manually create purchase orders or search approved requisitions and add them to purchase orders. or procurement card sites. You can also enter employees you reimburse for expense reports. You can also receive quotations electronically. You need a supplier to issue a request for quotation.

you can require inspection for some items and dockto-stock receipt for others. With Oracle Purchasing. bypassing the need for receiving department interaction.Automatically. by Workflow (blanket releases or standard purchase orders) With Oracle Purchasing. You can search for expected receipts based on a purchase order or a customer return recorded in Oracle Order Management and then process them to their final destination whether it is inventory. supplier. Review the status and history of your purchase orders at any time for all the information you need. Create purchase orders simply by entering a supplier and item details. with the lowest level overriding previous levels. by the Create Releases program (blanket releases) Automatically. You can define tolerances for receipt quantity. you can: Review all of your purchases with your suppliers to negotiate better discounts. transfer. receipts from other warehouses or inventory organizations. in-transit shipments and receipts due to customer returns. supplier. Create standard purchase orders and blanket releases from both on-line and paper requisitions. Define receiving tolerances at the organization. or order level to enforce material movement through receiving. you can process receipts from suppliers. and order level. the quantity due for each shipment does not show and quantity control tolerances are ignored. and internal delivery of the items you receive. Manage global supplier agreements (blankets and contracts) from a centralized business unit.Receiving(Receive) Using Oracle Purchasing. and internal delivery. expense or shop floor. you can: Receive orders from your desktop. Record supplier acceptances of your purchase orders. item. Use blind receiving to improve accuracy in the receiving process. and receiving location. Manage approved contractual terminology from a library of terms using Oracle Procurement Contracts. you’ll also receive an invoice. Using Oracle Payables you can record invoices in a number of different ways. With this option. Oracle Purchasing lets you control the items you order through receiving. You can use these features to indicate the quantity. Create accurate and detailed accounting information so that you charge purchases to the appropriate departments. you can: Use routing controls at the organization. With Oracle iProcurement. inspection.Invoicing(Pay) Once you’ve received goods or service from your supplier. 5. With Oracle Payables you can: . quality. Use Express and Cascade receiving to process certain types of receipts more quickly. For example. item. You always know whether your suppliers have received and accepted your purchase order terms and conditions. 6. on-time delivery. Copy existing purchase orders.

Select invoices for payment using a wide variety of criteria. With Oracle Payables. To check it is approved or not: Go to the Requisition Summary from and provide Requisition number. Oracle Payables provides the information that you need to make effective payment decisions.Enter supplier information 2.Create Purchase Orders Create Purchase Order from the Purchase Requisition created above. Open Distributions form and provide charge account. Import lease invoices transferred from Oracle Property Manager. manual payments. Oracle Payables is integrated with Oracle Cash Management to support automatic or manual reconciliation of your payments with bank statements sent by the bank. Use Oracle iExpenses to enter employee expense reports using a web browser.Payment Once invoices have been validated. you can: Ensure duplicate invoice payments never occur. including checks. high-volume entry of standard invoices and credit memos that are not complex and do not require extensive online validation.Enter invoices manually. Import EDI invoices processed with the Oracle e-Commerce Gateway. 7. Navigation Path : Purchasing Responsibility->Requisitions->Requisition Summary 3. Use the Invoice Gateway for rapid. We have auto-create . Go back to the main form and give it for approval. Automate invoice creation for periodic invoices using the Recurring Invoice functionality. III. stay in control of payments to suppliers and employees. Record stop payments Record void payments Review information on line on the status of every payment Process positive pay. Match invoices to purchase orders to ensure you only pay what you’re supposed to be paying for. and keep your accounting records up-to-date so that you always know your cash position. and electronic funds transfers. Record Oracle Project related expense reports. either individually or in batches. they can be selected for payment. Oracle Payables handles every form of payment. EDI payments. Record credit card/procurement card invoices from transactions the credit card issuer sends to you in a flat file.Enter Purchase Requisitions Create Purchase requisition (PR) for the Purchased items Navigation Path: Purchasing Responsibility->Requisitions->Requisitions Enter item details one by one. and automatically take the maximum discount available. Basic Steps to Create P2P Process 1. Pay only invoices that are due. wire transfers. bank drafts.

Automatic way: Navigation Path: Purchasing Responsibility->Auto-create Form Click on the form and enter Purchase Requisition (PR) number and click on Find Button. After you did all above changes. Manual or Automatic Manual way: Navigation Path : Purchasing Responsibility->Auto-create Form Click on the form and enter Purchase Requisition (PR) number and click on Find Button. This crates PO and shows message with PO Number. This Opens auto-create Documents form. click on Approve button to approve the PO.Create Receipts(When you receive inventory against PO) Navigation Path: Purchasing responsibility->Receiving->Receipts Click on the Receipts Form and enter the PO Number and click on find button. Here you can set Match Approval level. After adding all the Items click on Create button in the Bottom. You can also create PO without matching Purchase Requisition (PR). Choose the checkbox against the each of the item and click on Automatic button. Approve PO. It creates a new PO with status of Incomplete. Choose the checkbox against the each of the item and click on manual button. Click Shipments button and open the form. It opens the New Documents form. Using Auto-create also there are two Options to create Purchase order.    Standard Routing: This process will receive the Inventory in main inventory org and you need to do a manual transfer to sub-inventory if we choose this option. Direct Delivery: This process delivers the goods directly in sub-inventories. This opens the form New Document Form. Go to More tab in the same form. Provide Supplier name and click create Button. Here you can set receipt Routing(Direct Delivery/Inspection Required/Standard receipt). This will be in Incomplete status. Receipt Header Form Opens(Keep New receipt redio button checked). Choose Item one by one and click on Add to document Button. Open PO. Perform required modification to the Match Approval Level and Receipt Routing. This will add each Item to Document Builder Tab.Purchase order option to create Purchase Order (PO) from Purchase Requisition (PR). If PO is approved then we can receive inventory against this PO. In same form click on Receiving Controls button and open the form. This Opens auto-create Documents form. Click on Receipts form. It creates a Document Builder in Autocreate Documents Form. Select all Items . 4. Here you can set Receipt Routing. Click on Create Button. Inspection required: This process requires inspection of goods before receiving the goods in the inventory org.

Auto-Create Supplier Invoice We have to run Pay on Receipt Program to create self Billing Invoices for Receipts we created. Here select match check box for shipments you want to match to Invoice. Open Actions form and validate and approve the invoice. This creates accounting entries for invoice.Invoice Accounting From Invoice workbench. Payments Window opens up. Click Match button. Click on Actions Button and Enable the Create Accounting Check Box and Click Ok button. Click on Tools Menu to view the Accounting Entries created for the Payment http://oracle500.blogspot. Navigation Path: Purchasing Responsibility->Requests Run CP for Pay on Receipts Autoinvoice Program. Payment Document Generated for this record. Click on Match button.Create PO Match Invoice Navigation Path: Payables responsibility->Invoices->Invoices Provide invoice header level information in invoice workbench. 6. 5.on the Left-hand side check Box and Save the record. Provide PO Number and click find.Payment Accounting We need to Account for the Check Payment what have been made. Choose the Type as Quick and choose the Bank account and Document Type and save the Record. Click on the Header Button to note down the Receipt Number. Check the output and note down Invoice Number that has beed created. Navigation Path: Accounts Payables->Payments->Entry->Payments Click on the Payment form and Query for the Document Provide Receipt number in parameters windo of CP.Payment Click on Actions Button from the Invoice Screen to make Payment for the Invoice. 8.html . In Invoice Actions Button enable Pay in full check Box and click Ok. Click on Tools Menu and view Accounting to view the accounting entries Created. 9. open Actions form and select Create Accounting. This creates distributions for selected shipments. 7.

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