177213984 procure to pay complete functional flow in apps r12

10/18/13 Procure To Pay(Complete Functional Flow in apps r12).............. Procure To Pay Cycle in Oracle Apps R12 (P2P Cycle)

sivajivarma369.blogspot.in/2013/06/procure-to-paycomplete-functional-flow.html 1/31

9th June

Stage 1: Choosing an Item

Let us choose an item to be procured in our example.

Go to Purchasing Responsibility and follow the below navigation to check for the suitable item.

[http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-

k3COYjn8I/AAAAAAAAABs/0zEoumlDcMQ/s1600/Item+Navigation.JPG]

Procure To Pay(Complete Functional Flow in apps r12)..............Procure To Pay Cycle in Oracle Apps R12 (P2P Cycle)

http://sivajivarma369.blogspot.com/2013/06/procure-to-paycomplete-functional-flow.html

http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-k3COYjn8I/AAAAAAAAABs/0zEoumlDcMQ/s1600/Item+Navigation.JPG

http://sivajivarma369.blogspot.com/2013/06/procure-to-paycomplete-functional-flow.html



[http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-k3O25IQ_I/AAAAAAAAAB0/Lv-

1paZWvQk/s1600/Master+Items.JPG]

The item picked for our example should be purchasable item as above. Click on tools and choose “Categories” to

view the below screen.

http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-k3O25IQ_I/AAAAAAAAAB0/Lv-1paZWvQk/s1600/Master+Items.JPG



[http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k3XcZpXwI/AAAAAAAAAB8/Fb0nlUahjJQ/s1600/Categories.JPG]

Stage 2: Creation of Requisition

Follow the below Navigation to reach Requisition Form.

http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k3XcZpXwI/AAAAAAAAAB8/Fb0nlUahjJQ/s1600/Categories.JPG



[http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k3hCvYHoI/AAAAAAAAACE/7-

oKKOd9m0M/s1600/Requisition+Navigation.JPG]

Create a new Requisition for the item viewed in Stage 1.

http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k3hCvYHoI/AAAAAAAAACE/7-oKKOd9m0M/s1600/Requisition+Navigation.JPG



[http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k3sjj__fI/AAAAAAAAACM/uvOlEwrt6-

U/s1600/Requisition+New.JPG]

Click on Distributions to View the charge Account.

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k3sjj__fI/AAAAAAAAACM/uvOlEwrt6-U/s1600/Requisition+New.JPG

http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k31orOvoI/AAAAAAAAACU/yNbSI5EN8nE/s1600/PR+Distribution.JPG




k31orOvoI/AAAAAAAAACU/yNbSI5EN8nE/s1600/PR+Distribution.JPG]

Save and Submit for Approval


k39fUlXfI/AAAAAAAAACc/pCbhibM2DvQ/s1600/PR+Approval+initial.JPG]

Now note down the Requisition number and open the “Requisition Summary Form” to view the status of it. For

our Example, Requisition number is: 14855

Stage 3 : Checking the Status of Requisition

http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k31orOvoI/AAAAAAAAACU/yNbSI5EN8nE/s1600/PR+Distribution.JPG

http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k39fUlXfI/AAAAAAAAACc/pCbhibM2DvQ/s1600/PR+Approval+initial.JPG




k4Jkd_DXI/AAAAAAAAACk/hdvB20nuQoM/s1600/PR+Navigation.JPG]

Query for the Requisition Number and click Find.

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k4Jkd_DXI/AAAAAAAAACk/hdvB20nuQoM/s1600/PR+Navigation.JPG



[http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k4MNeF-ZI/AAAAAAAAACs/UZCtp8L-5vY/s1600/PR+Query.JPG]

Here for our example purpose, I kept the submitted and approved person has same and hence it shows the

status as approved.

[http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k4UZFljdI/AAAAAAAAAC0/tGzg393jxkY/s1600/PR+Summary.JPG]

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k4MNeF-ZI/AAAAAAAAACs/UZCtp8L-5vY/s1600/PR+Query.JPG

http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k4UZFljdI/AAAAAAAAAC0/tGzg393jxkY/s1600/PR+Summary.JPG



To see the approval status, please follow the below navigation.


k4XB0MPhI/AAAAAAAAAC8/YLPEtiLuPPM/s1600/PR+Approval+Navigation.JPG]


k4YWvlOLI/AAAAAAAAADE/_ErEh6N2fg8/s1600/PR+Approval.JPG]

Stage 4 : Creation of Purchase Order

For creating a Purchase order, let us use the “Autocreate Documents” Form. Follow the below Navigation

http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k4XB0MPhI/AAAAAAAAAC8/YLPEtiLuPPM/s1600/PR+Approval+Navigation.JPG

http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k4YWvlOLI/AAAAAAAAADE/_ErEh6N2fg8/s1600/PR+Approval.JPG



[http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k4_QAbchI/AAAAAAAAADM/9nehytUY-

2s/s1600/AutoCreate+Navigation.JPG]

Query for the Requisition

http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k4_QAbchI/AAAAAAAAADM/9nehytUY-2s/s1600/AutoCreate+Navigation.JPG




k5CBMMhOI/AAAAAAAAADU/KkLLzweTzjA/s1600/Auto+Create+Query.JPG]

Click on Automatic as shown in the above figure to create a Purchase Order

http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k5CBMMhOI/AAAAAAAAADU/KkLLzweTzjA/s1600/Auto+Create+Query.JPG

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k5GlFrQtI/AAAAAAAAADc/EdiDvCvfJ_E/s1600/Auto+Create.JPG



[http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k5GlFrQtI/AAAAAAAAADc/EdiDvCvfJ_E/s1600/Auto+Create.JPG]

Click on “Create” button to create a Purchase order


k5IZgZX0I/AAAAAAAAADk/PME4WHFmLBs/s1600/Auto+Create+New+Doc.JPG]

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k5GlFrQtI/AAAAAAAAADc/EdiDvCvfJ_E/s1600/Auto+Create.JPG

http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k5IZgZX0I/AAAAAAAAADk/PME4WHFmLBs/s1600/Auto+Create+New+Doc.JPG

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k7iGQ5pEI/AAAAAAAAAEs/hhaZcgcxjgQ/s1600/PO+Initial.JPG



[http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k7iGQ5pEI/AAAAAAAAAEs/hhaZcgcxjgQ/s1600/PO+Initial.JPG]

View the shipment screen to change the “Match Approval Level” to “2-Way”.

[http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k5fClxf5I/AAAAAAAAAD0/zdAJM2LTo-

Y/s1600/Change+Shipping.JPG]

Click the “Receiving Controls” to make sure that the “Routing” is made as “Direct Routing”

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k7iGQ5pEI/AAAAAAAAAEs/hhaZcgcxjgQ/s1600/PO+Initial.JPG

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k5fClxf5I/AAAAAAAAAD0/zdAJM2LTo-Y/s1600/Change+Shipping.JPG




k5h1UfCaI/AAAAAAAAAD8/WTC8UA8XT9U/s1600/Change+Receiving+Control.JPG]

Click Save and submit for Approval.

http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k5h1UfCaI/AAAAAAAAAD8/WTC8UA8XT9U/s1600/Change+Receiving+Control.JPG



[http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k5j9bxLJI/AAAAAAAAAEE/DznZsjPHoBc/s1600/Approve+PO.JPG]

http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k5j9bxLJI/AAAAAAAAAEE/DznZsjPHoBc/s1600/Approve+PO.JPG

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k5bWx8KuI/AAAAAAAAADs/gBuI6nWXi5U/s1600/Auto+Created+Purchase+Order.JPG




k5bWx8KuI/AAAAAAAAADs/gBuI6nWXi5U/s1600/Auto+Created+Purchase+Order.JPG]

Note down the PO Number.

Stage 5: Creation of Receipts


k7AAem5rI/AAAAAAAAAEk/q_HDIeB0Vxs/s1600/Receipts+Navigation.JPG]

Query with the Purchase order created in the above stage.

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k5bWx8KuI/AAAAAAAAADs/gBuI6nWXi5U/s1600/Auto+Created+Purchase+Order.JPG

http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k7AAem5rI/AAAAAAAAAEk/q_HDIeB0Vxs/s1600/Receipts+Navigation.JPG




k6NK0pITI/AAAAAAAAAEM/KAqVcFYkS4M/s1600/Query+Receipts.JPG]

Check the check box near to the lines that are received and click save.

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k6NK0pITI/AAAAAAAAAEM/KAqVcFYkS4M/s1600/Query+Receipts.JPG



[http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-k6SboShjI/AAAAAAAAAEU/AqEjLG3ABy4/s1600/Receipts.JPG]

Click the “Header Button” to view the Receipt Number.

[http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k6VipvIwI/AAAAAAAAAEc/rJem-

zF47Wk/s1600/Receipt+Header.JPG]

Stage 6: Checking the On Hand

Go to any Inventory Responsibility and follow the below Navigation

http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-k6SboShjI/AAAAAAAAAEU/AqEjLG3ABy4/s1600/Receipts.JPG

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k6VipvIwI/AAAAAAAAAEc/rJem-zF47Wk/s1600/Receipt+Header.JPG




k8DvXghvI/AAAAAAAAAE0/QI5XQzHeEkc/s1600/On+Hand+Navigation.JPG]

Query for our Receipt and make sure the Organization is the same as we received.

http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k8DvXghvI/AAAAAAAAAE0/QI5XQzHeEkc/s1600/On+Hand+Navigation.JPG



[http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k8FckERMI/AAAAAAAAAE8/s5naP--

uGrk/s1600/On+Hand+Query.JPG]

Below screen will show that our inventory has been increased by 5 quantities.

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k8FckERMI/AAAAAAAAAE8/s5naP--uGrk/s1600/On+Hand+Query.JPG




k8G3Mp3KI/AAAAAAAAAFE/fvkWZ2Rpaj0/s1600/On+hand+final.JPG]

Stage 7: Check the Material Transactions

Follow the below Navigation to reach “Material Transactions” Form

http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k8G3Mp3KI/AAAAAAAAAFE/fvkWZ2Rpaj0/s1600/On+hand+final.JPG




k8VvY3vUI/AAAAAAAAAFM/hge6WC1KxcA/s1600/Transaction+Navigation.JPG]

Query for the item and date as below

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k8VvY3vUI/AAAAAAAAAFM/hge6WC1KxcA/s1600/Transaction+Navigation.JPG




k8XoGCLAI/AAAAAAAAAFU/F7P8K4FH7Mw/s1600/Find+Transaction.JPG]

Below screen shows the source and transaction Type

http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k8XoGCLAI/AAAAAAAAAFU/F7P8K4FH7Mw/s1600/Find+Transaction.JPG




k8ZAtp1MI/AAAAAAAAAFc/9BArHdiTLzo/s1600/Material+Transaction.JPG]

Below screen shows you the Serial Numbers of the items received.

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k8ZAtp1MI/AAAAAAAAAFc/9BArHdiTLzo/s1600/Material+Transaction.JPG




k8bO2popI/AAAAAAAAAFk/zm4zNg5vuvw/s1600/Transaction+Serial+Numbers.JPG]

Stage 8: Creation of Invoice

Navigate to any Purchasing Responsibility and view à Requests

Submit the below requests by providing the Receipt number as Parameter to create an invoice.

http://1.bp.blogspot.com/_DRLwX6_7UbQ/S-k8bO2popI/AAAAAAAAAFk/zm4zNg5vuvw/s1600/Transaction+Serial+Numbers.JPG




k8wpFg2EI/AAAAAAAAAFs/TRVEh8xPF4c/s1600/Program+Sub.JPG]

Check the status of the program.

http://2.bp.blogspot.com/_DRLwX6_7UbQ/S-k8wpFg2EI/AAAAAAAAAFs/TRVEh8xPF4c/s1600/Program+Sub.JPG




k8yDCM7dI/AAAAAAAAAF0/NAUaw5fDQcg/s1600/Conc+Prog+Status.JPG]

Stage 9: Checking the Invoice

Change to any Payables Responsibility and open the invoices Form.

Query for the Purchase order as below,

http://4.bp.blogspot.com/_DRLwX6_7UbQ/S-k8yDCM7dI/AAAAAAAAAF0/NAUaw5fDQcg/s1600/Conc+Prog+Status.JPG




k9JkZt7II/AAAAAAAAAF8/LlibfuDrLaw/s1600/Invoice+Find+Screen.JPG]


http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-k9JkZt7II/AAAAAAAAAF8/LlibfuDrLaw/s1600/Invoice+Find+Screen.JPG

http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-k9Lo3BvmI/AAAAAAAAAGE/t_LobKcHAyU/s1600/Invoice+Form.JPG



k9Lo3BvmI/AAAAAAAAAGE/t_LobKcHAyU/s1600/Invoice+Form.JPG]

Click “Actions” Button then tick the “Validate Check Box” and press “Ok” to validate the invoice


k9RuRh_5I/AAAAAAAAAGM/H_HIdo9KWi4/s1600/Validate+Form.JPG]

Below screenshot will give you the status of the invoice

http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-k9Lo3BvmI/AAAAAAAAAGE/t_LobKcHAyU/s1600/Invoice+Form.JPG

http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-k9RuRh_5I/AAAAAAAAAGM/H_HIdo9KWi4/s1600/Validate+Form.JPG




k9Tg8JfiI/AAAAAAAAAGU/O4xA3avXltI/s1600/Invoice+with+Validated+status.JPG]

Stage 10: Creation of Accounting and Payment

Once invoice got approved, we can “Create Accounting” and “Create Payments” via “Action” Button in the

“Invoice Form” as we validated the invoice.

Thus the brief description of P2P cycle came to end.

First let’s see what the heading itself means? Procure to Pay means Procuring Raw Materials required to

manufacture the final or finished Goods to Paying the Supplier from whom the material was purchased.

But this is not just two steps. It involves many steps. Let’s see the steps and Oracle Application involved in

performing those steps.

1. Oracle Purchasing: You enter Suppliers of different materials and products you want to purchase to

manufacture a finished good that your organization plans to sell.

2. Oracle Purchasing: You prepare a Request for Quotation (RFQ) and send it to different suppliers

to get the best and/or economical price for the product.

3. Oracle Purchasing: Suppliers sends their quotations and you upload those quotations in Oracle

Purchasing to get the best three quotes and further to get the one best quote.

4. Oracle Purchasing: You prepare a Purchase Order(PO) against the best RFQ to buy the goods

changes in 11i and R12 in P2P cycle

Procure to Pay

http://3.bp.blogspot.com/_DRLwX6_7UbQ/S-k9Tg8JfiI/AAAAAAAAAGU/O4xA3avXltI/s1600/Invoice+with+Validated+status.JPG



from the supplier who quoted the suitable price and sends the PO to that supplier

5. Oracle Purchasing: The supplier receives the confirmation of purchase from PO and ships the

ordered goods. You receive the goods enter aGoods Received Note (GRN) in Oracle Purchasing.

6. Oracle Inventory / Oracle Assets: It’s up to you whether you want to receive the goods at your head

office or you Inventory directly. In either case you move the received goods to your different Raw

Material Inventory from Oracle Purchasing to Oracle Inventory and the Item Count increases. If the

item is Asset Type then it will move to Oracle Assets at the time of Invoice creation in Oracle

Payables.

7. Oracle General Ledger: Once you move the goods to Oracle Inventory, it sends the Material

Accounting to Oracle General Ledger.

8. Oracle Payables: After this the supplier sends you the invoice for the purchased goods and you Enter

or Match the invoice against the PO from Oracle Purchasing in Oracle Payables. As said before, if the

item is Asset in nature then it will move to Oracle Asset.

9. Oracle General Ledger: When you enter the invoice it means that you have created a Liability

against that supplier and also you have recorded the expense incurred or asset purchased. Oracle

Payables sends the invoice accounting to Oracle General Ledger.

10. Oracle Payables: You pay the invoice and settle the Liability.

11. Oracle General Ledger: The liability is settled and your cash movement account is updated.

12. Oracle Cash Management: As you pay the invoice Oracle Payables sends the payment information

to Oracle Cash Management for Bank Reconciliation. Once reconciled, Oracle Cash Management

sends the updated Bank/Cash accounting entry to Oracle General Ledger.

13. Oracle General Ledger: Your cash at bank is updated with actual balance.

14. Oracle Process Manufacturing(OPM) / Oracle Discrete Manufacturing(ODM): You start the

manufacturing of your final product. Both OPM or ODM requests the different raw materials from your

inventory organizations and manufactures a finished good.

15. Oracle Inventory: As the raw materials are issued to OPM and ODM the inventory sends the issuing

material accounting to General Ledger and decreases the Item Count from the Raw Material Store. As

the finished good is prepared, Oracle Inventory receives the finished good in Finished Good Store and

increase the Item Count.

Now the final product is ready to be sold in the market.

Posted 9th June by Srinivas

http://www.blogger.com/profile/15788457197841163285

177213984 procure to pay complete functional flow in apps r12

Documents

paycomplete functional

requisition number

new requisition

requisition form

requisition summary

jpgthe item

suitable item

purchasable item