P2P cycle in details

8/3/2019 P2P cycle in details

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Procure to Pay Life Cycle Overview

Prepared by:- Senthil Kumar Kaliyamurthy


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Objectives

Describe the procure to pay process flow

Describe the key areas in the procure to pay process

Describe how the procure to pay process fits into the

Oracle eBusiness suite of applications


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Overview of Application Integration

The following Applications IntegratedPurchasingPayablesAssetsGeneral LedgerInventoryOrder Management


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Purchasing

Purchasing captures accounting information on requisitions and purchase orders. Purchaseorders are sent to suppliers who respond by delivering goods or services and sending invoices

that are processed in Payables. During the accounting period, accruals for goods set to accruea liability on receipt are sent to General Ledger. At the end of the accounting period, accrualsfor goods and services set to accrue a liability at period end can be sent to General Ledger.Any suppliers set up in Purchasing are shared with Payables and vice versa.

PayablesSupplier invoices are entered into Payables and if appropriate, matched to purchaseorders in Purchasing. During the matching process, the invoice distribution is copied

from the purchase order (in the case of an expense) or the appropriate liability account (inthe case of an inventory item). Payables, expenses and payments are interfaced toGeneral Ledger. Invoices for asset purchases can be interfaced to Assets.

AssetsAssets from Payables and other sources are maintained in Assets. Assets are added,processed, depreciated and eventually retired. At the end of each asset period, accountinginformation is interfaced directly to General Ledger.

General Ledger

General Ledger receives accounting information from many Oracle applications. Onceaccounting information is imported, journals can be posted and account balances updated.When implementing Oracle Applications, creating a set of books consisting of an accountingcalendar, currency and chart of accounts is one of the first steps that must be completedbefore setting up other applications.


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InventoryOrder Management and Purchasing as well as other Oracle applications can use items definedin Inventory. If the item is designated as a planned item, demand can be generated in the form

of requisitions and sent to Purchasing where purchase orders or blanket releases can becreated to replenish inventory levels

Order ManagementCustomer purchase orders can be recorded in Order Management. Goods are shipped tocustomers as defined by the sales order. After goods are shipped, customer invoices are sentto Receivables and inventory levels are updated. Any customers that are set up in OrderManagement are shared with Receivables and vice versa.

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Requisitions

PurchaseOrders

Receiving

Reporting

Invoice/Payment

SupplierPerformance

Suppliermanagement

RFQs/Quotations

CatalogContent

Sourcing

Ordering

Analysis

Procure to Pay Lifecycle


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InventoryPurchase order

SupplierRequest forquote (RFQ)

Receipts

Purchaserequisition

Demand Source

Order

Inventory

Quotation

Receive Invoice

Invoice

Payment

Payment

Transfer to General Ledger



Requisition represent the demand for goods or service

Request for Quotation (RFQ) feature handle your sourcing needs

Create an RFQ from Requisition, match the supplier Quotation

your RFQ and automatically copy the quotation Information to

Purchase Order

Creating Purchase Order

Method of Purchase Order

Manual Creation

Search approved requisition and them to PO

Types of Purchase Order

1. Standard Purchase Order

2. Planned Purchase Order

3. Blanket Purchase Agreement

4. Contract Purchase Agreement

Receipt of the material

Creating the Invoice

Match the Invoice with POApprove and validate the Invoice

Pay the Invoice



Standard Po:

Generally Create the Standard Purchase Order for One Time Purchase

Of Various items.

Blanket Purchase Agreement:

Create the Blanket Purchase Agreement when you know the details of

The goods or services you plan to buy from the specific supplier in a

Period, but you do not know the details of your delivery schedule.

Planned PO

Create the Planned Purchase Order is a long-term agreement committing

To buy the item or service from the single source. Must specify the

Tentative delivery schedule and details of goods.

Contract Purchase Agreement

Create the Contract Purchase Agreement with your supplier to agree on

Specify terms and conditions without indicating the goods and service

That you will be purchasing.



Receipt of Material:

Using Purchasing, you can process receipt from supplier.

Using Purchasing you can receipts from other warehouse or InventoryOrganization, In-transit shipments and receipt due the customer returns.

PURCHASHING USING THE FOLLOWING ROUTING CONTROL FOR

RECEIPT OF THE MATERIAL.

TWO WAY --- FROM GATE TO DIRECT SUB-INVENTORY.

THREE WAY --- FROM GATE TO RECEIVINGAREA TO SUB INVENTORY

FOUR WAY FROM GATE TO RECEIVING AREA TO INSPECTION AREA TO

SUB- INVENTORY.

MATCHING METHODS:-

TWO WAY MATCHING --- PO QTY WITH INVOICE QTY

PO AMOUNT WITH INVOICE AMOUNT

THREE WAY MATCHING --- PO QTY AND RECEIVED QTY WITH INVOICE QTY

FOUR WAY MATCHING --- PO QTY, RECEIVED QTY, INSPECTED QTY WITH

INVOICE QTY



INVOICE:-

Once youve received the goods or service from the supplier, youll alsoreceive an invoice. Using Oracle Payables you can record invoice in anumber of different ways .

With Payable you can:

1. Import / Enter invoice manually, either individually or in batches.

2. Match the Invoice with Purchase Order.3. Schedule the payment.

4. Approve the Invoice

5. Validate the Invoice

6. Create accounting Entries

7. Pay the Invoice as per schedule.

8. Transfer the Accounting entries to GL.

9. Payments are integrated with Cash Management.

10. Reconcile the payment with bank statement.

C t R i iti



Create an Requisition

(N) Requisition Requisition.

Base Table: PO_REQUISITIONS_HEADERS_ALL (requisition_header_id)

Stored all Requisition header information.



Base Table: PO_REQUISITIONS_LINES_ALL (requisition_lines_id)

Stored in requisition Lines Information.



Query the Requisition from Requisition Summary Window

(N)Requisition Requisition Summary.



Create an Requisition For Quote.

(N) RFQs and Quotation RFQs



(B) Currency(N) RFQs and Qu`otation RFQs



(N) RFQs and Quotation RFQs(B) Terms



(N) RFQs and Quotation RFQs(B) Price Breaks



(T) More(N) RFQs and Quotation RFQs



(N) RFQs and Quotation RFQs(T) Supplier



(N) RFQs and Quotation Quotation.Create an Quotation.


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Create an Purchase Order.

(N) Purchase Order Purchase Order


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(N) Purchase Order Purchase Order(B) Catalog


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(B) Currency


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(B) Terms and Condition


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(B) Shipments(T) Shipments


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(T) More


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(T) Status


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(B) Receiving Controls


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(T) Distributions


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Approve the Purchase Order

(B) Approve


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Status of the Purchase Order is Approved

Base Tables:- PO_HEADER_ALL (po_header_id)

PO_LINES_ALL (po_lines_id)

PO_DISTRIBUTION_ALL(po_distribution_id)


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Receiving the Material(N) Receiving Receipt

Choose Your Inventory Organization


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Enter Your Purchase Order and item


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Choose the New Receipt and Save your work


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Responsibility: Inventory, Vision Operation:

Choose your Inventory Organization

(N) On-hand, Availability On-hand Quantity


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Give your Item in Item field


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Check your On- hand Quantity Is Increased


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Responsibility: Payables, Vision operations (USA)

(N) Invoice Entry InvoiceSelect Po Default Invoice Type


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Match the Invoice in PO.

(N) Invoice Entry Invoice(B) Match


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Enable the Match Check Box

(B) Distribute the Po Lines in the Invoice Line


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(N) Invoice Entry Invoice(B) Action Select the Validate

Validation of Invoice


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Accounting Entries

(M) Tool View Accounting

Base Tables: AP_INVOICE_ALLAP_DISTRIBUTION_ALL


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(N) Invoice Entry InvoicePayment to Invoice


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Payment to the Invoice


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(N) Invoice Entry Invoice


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Account the Payment


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Base Tables: AP_CHECK_ALL


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PAYMENT ACCOUNTING ENTRIES

(M) Tools View Accounting


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Payables Transfer to General Ledger

Run the Request: Payables Transfers to General Leder


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Payables Transfer to GL Report


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Journal Import Execution Report


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Responsibilities: General Ledger, Vision Super user

(N) Journal EnterReview the Journal Batch


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Review the Journal Batch


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Post the Journal Batch


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Review the Posted Journals


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Base Tables: GL_JE_HEADERSGL_JE_LINESGL_JE_BATCHES


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Responsibility: Cash Management, Vision Operation (USA)

(N) Bank Statement Manual Clearing Clear TransationsManual Clearing for Payment


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Documents

P2P cycle in details