procure to pay cycle in r12

Procure to Pay Cycle in R12(Technical and Functional Flow)

21 Apr. 23

S.No Description Page No.

Procure To Pay Cycle - Overview 3

1 Organization Structure to understand Procure to Pay cycle process flow 5

2 Pre-Requisites for Purchase Order 6

3 How to create a Purchase Requisition in Oracle Apps 8

1. Functional Flow 9

2. Base tables for Purchase Requisition in Oracle Apps 15

4 Steps to create a Request for Quotation (RFQ) in Oracle Apps 17


2. Base tables for Request for Quotation (RFQ )in Oracle Apps 23

5 How to create Quotation and Perform Quote Analysis in Oracle Apps 23


6 Steps to create a Purchase order (PO) in Oracle Apps 27


2. Base tables Purchase Order (PO) in Oracle Apps 35

7 Creating Receipts in Oracle Apps 40


2. Base tables for Receipts in Oracle Apps 42

8 Verify Items in Inventory 43

1. Base tables for Inventory items in Oracle Apps 44

9 Creating and Making payments for an Invoice in Oracle Apps 45


2. Base tables for Invoices in Oracle Apps 51

10 Flow of Accounting Entries from AP to GL 53

1 Procure To Pay Cycle-Overview

Procure to Pay cycle in Oracle is the cycle which is concerned with the procurement

of the raw materials from suppliers to prepare the finished goods to the step of payment to

21 Apr. 23

the supplier for the goods purchased. The process flow remains the same across various

versions of Oracle Apps viz. 11i, R12 with slight variations in the options that are present

in each version.

In P2P cycle the primary modules included are PO, AR, AP, CM and GL with an in-

tegration with other modules like iProcurement, iSupplier, iExpenses, Services Procure-

ment, Sourcing, Procurement Contracts, Approval Management, EBTax, and Pay-

ments. Sometimes considered as an another module, SubLedger Accounting is a function-

ality which is integrated into other modules to generate accounting entries for transac-

tions generated for those modules.

P2P In Simple?

Procuring raw materials from suppliers which are required to manufacture the fi-

nal or finished goods. Paying the supplier from whom the material was purchased.

Fig.1. P2P flow diagram

The requirement arises from requirements for items, and company places order for

items needed. The vendor supplies the items. Once items are received payment will be

made i.e an invoice will be raised and payment will be made to the vendor. The payment

can be of cash, cheque etc. This is governed under cash management and finally the trans-

action details will be accounted in GL.

This article discusses the steps involved in a Procure to Pay (P to P) cycle applied in

many business organizations.

21 Apr. 23

1. Organization Structure to understand Procure to Pay cycle process flow

2. How to create a Purchase Requisition in Oracle Apps.

3. Steps to create a Request for Quotation (RFQ) in Oracle Apps

4. How to create Quotation and Perform Quote analysis in Oracle Apps

5. Steps to Create Purchase order (PO) in Oracle Apps

6. Creating Receipts in Oracle Apps

7. Verify Items in Inventory

8. Creating and Making Payments for an Invoice in Oracle Apps

9. Create Journal entries in General Ledger and post

The following is a high level process flow diagram of Procure to Pay cycle. It details the series

of transactions from procurement to payment and final accounting.

Fig.2. Process Flow Diagram of P2P

1. Organization Structure to understand Procure to Pay cycle process flow

The Procure to pay cycle is tightly linked to the organizational structure. Hence, it is

important to first understand the organization structure of the business (also referred to as ‘Org

Structure’ in ERP consulting parlance) to understand the business process flows. The organiza-

tion structure specified in this article is based on the Multi-Organization concepts as applic-

able to Oracle Apps R12 version.

21 Apr. 23

To give an illustration of why this is important, consider the following example. When

there is a requirement for a specific item to be procured, it is essential to know which inventory or-

ganization (say Chicago manufacturing plant) in the Organization Structure has the requirement

for that item. It is also essential to know the Operating Unit corresponding to the Inventory Organ-

ization for which the requisition is being made.

While creating a requisition, the details of both Operating Unit and Inventory Organization

would have to be provided. Hence, having a pictorial representation of the organization structure

as follows helps.

The Organization Structure represented in the diagram below can be interpreted as fol-

lows:

1. There is a single Business Group which is like a parent group for all the legal en-

tities. A Business Group is not a legal entity and is not a register enterprise.

2. There can be one or more Legal Entities. Legal Entities require compliance with

local laws both legal and accounting related.

3. The Primary Ledger is required for recording all the financial transactions.

4. Operating Units are defined for each Legal Entity.

5. A Legal Entity can have one or more Operating Units. The transactions in each

Operating Unit are recorded in the Primary Ledger tagged with that Operating

Unit.

6. Inventory Organizations are defined for each Operating Unit. These represent

the units where actually production/manufacturing/Processing may take place.

2. Pre Requisites for Purchase Order:

1. Item Creation

2. Supplier Creation

3. Buyer Creation

-------------------------------------------------

1. Item Creation:

a. Attach the Responsibility called "Inventory Vision Operations (USA)"

b. Open the Items form

i. Items=>Master Item

c. Select the Organization name - Vision Operations

21 Apr. 23

d. Enter the Item Name, Item Description

i. Go to Inventory tab check the checkbox called Inventory Item

ii. Go to purchasing tab check the check box called Purchasable

e. Save

f. Go to Tools Menu => Organization Assignment option to assign for the multiple

Organizations.

Select * FROM MTL_SYSTEM_ITEMS_B where SEGMENT1='APACHE'; -- INVENTORY_ITEM_ID=20817

2. Supplier Creation:

a. Attach the Responsibility called "Purchasing Vision Operations (USA)"

b. Go to the Supplier Form

Supply Base=>Suppliers

c. Enter the Supplier Name. Save. Supplier number will be created automatically.

d. Select the Sites button enter the supplier site address and other details

e. Go to the Contacts tab enter the Contact details

i. Name

ii. Phno

iii. Position and so on.....

Select * FROM AP_SUPPLIERS where SEGMENT1='20067'

--VENDOR_ID= 4128

Select * FROM AP_SUPPLIER_SITES_ALL where VENDOR_ID= 4128

--VENDOR_SITE_ID=5193

Select * FROM PO_VENDOR_CONTACTS where VENDOR_SITE_ID IN=5193

3. Buyer Creation:

a. Attach the Responsibility called "US HRMS Manager"

b. Create Employee

People => Enter and Maintain=>Select New button

c. Enter EMP name

d. Select action option select "create Employment" select the option is "Buyer"

21 Apr. 23

e. Enter Data of Birth

Save => Ok => Employee number will be generated.

f. Go to System Administrator open the User form create or query user

g. Select the Person field attach the EMP name (Which we have created)

h. Save.

i. Go to Purchasing Responsibility

j. Open the Buyers form

k. Enter the employee name and save the transactions.

Setup => Personal =>Buyers

Select * FROM PER_ALL_PEOPLE_F where PERSON_ID='25'

--EMPLOYEE_NUMBER='1289' --PERSON_ID=13496

3. How to create a Purchase Requisition in Oracle Apps

What is Purchase Requisition?

Requisition is nothing but a formal request to buy something. Requisitions repres-

ent the demand for any goods or services that an organization needs. It is created and ap-

proved by the department requiring the goods and services.

Fig.4. Purchase Requisition Flow

A purchase requisition typically contains the description and quantity of the goods

or services to be purchased, a required delivery date, account number and the amount of

money that the purchasing department is authorized to spend for the goods or services. Of-

ten, the names of suggested supply sources are also included.

21 Apr. 23

Requisitions for goods and services:

Are generated by applications including Inventory, Work in Process (WIP), Mater-

ial Requirements Planning (MRP) and Order Management.

May be entered manually through Purchasing windows.

May be entered using iProcurement.

May be imported from external systems.

There are two types of Requisitions

Internal Requisitions are created if the Items are to be obtained from one Invent-ory location to another location within the same organization. Here the source of the requisition would be INVENTORY. There is no approval process for internal re-quisition.

Purchase Requisitions are created if the goods are obtained from external suppli-ers. Here the source of the requisition would be SUPPLIERS. The purchase requisi-tions are sent for approvals.

With Oracle Purchasing module, you can create, edit, and review requisition information

on- line. Then the Requisitions will go for approvals from proper authorities.

1. Functional Flow

Navigation: Purchasing responsibility >> Requisitions >> Requisitions

Requisition is divided into two parts: header and lines

The header holds the general information about the requisition that is related to

all the lines where as the lines have the specific information about the item to be pur-

chased. Choose the requisition type (here it is purchase requisition). Preparer is the default

person who is creating the requisition and cannot be changed. Item requester can be differ-

ent from preparer. You can give the description in the description field.

Navigate to lines tab and select the item that you wanted to purchase and enter

the quantity and need by date.

Fig.5. Purchase Requisition

21 Apr. 23

In the Source details tab, you can input detailed information. You can give a spe-

cific note to the buyer which might give particular information related to this purchase.

You can also add buyer’s name.RFQ required check box denotes that the purchase of the

item requires a request for quote

Document type, document and line are all completed by EBS automatically when a re-

quisition is created from a blank order, a contract or a quotation.

Fig.6. Source Details Tab

Global is checked when a blanket purchase agreement for the entire organization exists

for the item being purchased.

Owning organization displays the organization who owns the agreement. This feature is

usually seen when an organization is using a centralized purchasing model.

21 Apr. 23

Header

Lines

Contract num along with rev references the associated contract agreement with the sup-

plier for specific terms and conditions

You can further add extra description in the details tab. You can notify supplier that the

item is needed urgently by checking urgent checkbox. Note to receiver might give some

information to the receiver when he receives the item. Transaction nature describes the

nature of transaction. You can enter a reference number which provides a reference to a

document in another system such as a work order. You can select UN number and hazard

from list of values.

Fig.7. Details Tab

Requisitions can be added in any currency set up in EBS by identifying the currency code

and exchange rate type on currency tab.

Fig.8. Currency Tab

21 Apr. 23

Select the Distributions tab and enter the charge account

Fig.9. Entering the Charge Account

Close the form and save your work. You will now notice that ‘Approve’ button is

highlighted. Click the ‘Approve’ button to submit this requisition for approval.

Fig.10. Approving the Requisition

21 Apr. 23

http://www.techmandate.com/wp-content/uploads/2013/07/req2.jpg

Fig.11. Submit for Approval

Click ‘OK’ button to send the Approval notification to the concerned person. Ap-

proval Hierarchies are used to route the documents to the concerned person for Approval.

The document can be ‘approved’ or ‘rejected’.

You can always check the ‘Status’ of your ‘requisition’ by navigating to ‘Requisi-

tion summary’. Here you can get your ‘requisition’ details by entering your requisition

number.

21 Apr. 23

Requisitions>> Requisition Summary

Fig.12. Requisition Summary

Here, our requisition is approved. You can also view the ‘Action History’ of the re-

quisition by navigating to Tools>> Action History.

Here the sequence of the steps involved (who has submitted the requisition, and

who has approved/ rejected the requisition) is shown:

Fig.13. Action history of Purchase Requisition

2. Base tables for Purchase Requisition in Oracle Apps

1. PO_REQUISITION_HEADERS_ALL (SEGMENT1 column in this table represents the

requisition number).

This table stores Header information of a Purchase Requisition.

21 Apr. 23

Important columns of this table:

REQUISITION_HEADER_ID: It is a unique system generated Requisition identifier

PREPARER_ID: It is a unique identifier of the employee who pre-pared the requisition

SEGMENT1: It is the Requisition number

AUTHORIZATION_STATUS: Authorization status type

TYPE_LOOKUP_CODE: Requisition type

ORG_ID: Unique Operating unit unique identifier

You can get REQUISITION_HEADER_ID by executing the following command:

Select REQUISITION_HEADER_ID from PO_REQUISITION_HEADERS_ALL

where SEGMENT1= 14373;

-- REQUISITION_HEADER_ID = 181283 (14373 is our Requisition Number)

REQUISITION_HEADER_ID is the link between PO_REQUISITION_HEADERS_ALL and

PO_REQUISITION_LINES_ALL

2. PO_REQUISITION_LINES_ALL

This table stores information about Requisition lines in a Purchase Requisition.

This table stores information related to the line number, item number, item category, item

description, item quantities, units, prices, need-by date, deliver-to location, requestor,

notes, and suggested supplier information for the requisition line.


REQUISITION_HEADER_ID: It is a unique system generated Requisition identi-fier

REQUISITION_LINE_ID: Link between PO_REQUISITION_LINES_ALL and PO_REQ_DISTRIBUTIONS_ALL

LINE_NUM: Indicates the Line number

LINE_TYPE_ID: Indicates the Line type

21 Apr. 23

CATEGORY_ID: Unique Item category identifier

ITEM_DESCRIPTION: Description of the Item

QUANTITY NUMBER: Quantity ordered

Select REQUISITION_LINE_ID From PO_REQUISITION_LINES_ALL Where RE-

QUISITION_HEADER_ID=181283;

-- REQUISITION_LINE_ID = 208463

3. PO_REQ_DISTRIBUTIONS_ALL

This table stores information about the accounting distributions of a requisition

line. Each requisition line must have at least one accounting distribution. Each row in-

cludes the Accounting Flexfield ID and Requisition line quantity.


DISTRIBUTION_ID: Unique Requisition distribution identifier

REQUISITION_LINE_ID: Unique Requisition line identifier

CODE_COMBINATION_ID: Unique General Ledger charge account identifier

DISTRIBUTION_NUM: Distribution number

Select DISTRIBUTION_ID from PO_REQ_DISTRIBUTIONS_ALL where

REQUISITION_LINE_ID= 208463;

-- DISTRIBUTION_ID= 206987

REQUISITION_LINE_ID is the link between the PO_REQUISITION_LINES_ALL and

PO_REQ_DISTRIBUTIONS_ALL

Viewing results by executing SQL commands:

Select CREATION_DATE, AUTHORIZATION_STATUS, SEGMENT1, TYPE_LOOKUP_CODE

from PO_REQUISITION_HEADERS_ALL where SEGMENT1= ’14373′;

21 Apr. 23

Select CREATION_DATE, CREATED_BY, ORG_ID, REQ_LINE_QUANTITY from

PO_REQ_DISTRIBUTIONS_ALL where REQUISITION_LINE_ID=208463;

4 Steps to create a Request for Quotation (RFQ) in Oracle Apps

Once the Requisition is Approved Buyer will prepare the RFQ document which will be de-

livered to the supplier.

Request for Quotation (RFQ) is a formal request sent to the suppliers to find the pricing

and other information for an item or items. Based on the information supplied, the supplier

quotes a quotation against the RFQ form.

In general, RFQ’s are created before purchasing any item to actually know the price quotes

from one or more suppliers.Supplier will respond for that with quotation.

We have Three types of RFQ documents

Bid RFQ: This will be prepared for the specific fixed quantity and there won't be

any PriceBreaks(Discounts).

Catalog RFQ: This will be created for the materials which we will purchase from

the suppliers regularly, and large number of quantity. Here we can specify the

PriceBreaks.

Standard RFQ: This will be prepared for the Items which we will purchase only

once not very often, Here we can include the Discounts information at different

quantity levels.

RFQ Information will be entered at 3 Level:

1)Header

2)Lines

3)Price Breaks(CATALOG,STANDARD) or Shippments (Only for Bid RFQ)

21 Apr. 23

Terms And Conditions:

While creation of the RFQ documents we will select the Terms button and we will enter the

terms and condition details.

Payment Terms: When Organization is going to make the payment and In-

terest rates

Fright Terms: Who is going to Bear the Transportation chargers whether

Buyer or Supplier

FOB (FreeOnBoard): If any materials damage or any missing quantity is there

then the responsibility of those materials.

Carrier : In which Transportation Company Organization Required Materials

Transportation company Name.

4.1 Functional Flow

In Oracle EBS, RFQ’s can be auto created from an existing Purchase Requisition or can be

a fresh RFQ.

Let’s auto create RFQ from an existing Purchase Requisition.

(Note: by selecting Auto Create, the system automatically fills the data in the form based

on the details provided in the Purchase Requisition form. For a new RFQ, we need to enter

the data manually)

Navigate to Purchasing>> Requisitions>> Requisitions Summary to find a requisition

number.

Fig.14. Requisition Headers Summary

21 Apr. 23

I will auto create RFQ from an existing Purchase Requisition (here it is 14373).

Navigate to Purchasing>> Auto Create

Press Clear button and enter your Requisition number and click find.

Fig.15.Find Requisition Lines

Your Requisition summary is shown in the next screen.

Check box your Requisition line and in the Document Type, select RFQ and click Auto-matic button to Auto Create RFQ.

21 Apr. 23

Fig.16. Auto Create documents

It will navigate to a new window. Here the RFQ Type is Standard RFQ and click create button.

Fig.17. New Document

In the next window, RFQ form is auto created from an existing Purchase requisition.

Fig.18. Auto Create RFQ

21 Apr. 23

Click Suppliers button and enter the details of the Suppliers to whom you want to send this RFQ.

Fig.19. RFQ Suppliers

Click on Terms button and add payment terms and freight terms.

Fig.20.RFQ Terms

Click Price Breaks button

21 Apr. 23

The Price Breaks form is generally used to enter pricing information for the RFQ

and to negotiate/bargain with the suppliers by asking a discount. You can also provide

multiple price breaks to receive a different quotation from the suppliers by altering pay-

ment terms, quantity etc.

Fig.21. RFQ Price Breakdowns

In the above picture, the first line shows the actual quantity is 250 and the actual

price is 25. In the second line, we have asked for a discount of 2% and the price has

changed to 24.5. This way the above form is used for negotiation and price break up. Close

the form.

Change the status to Active and save the RFQ.

Fig.22. RFQ

Now the RFQ is Auto Created from an existing Purchase Requisition and now we need to

send this form to the Suppliers we selected in the above RFQ form.

21 Apr. 23

Run the Concurrent Request called Printed RFQ Report to print this RFQ to send it to the

suppliers

4.2 Base Tables and links in the backend

--RFQ query

Select * from PO_HEADERS_ALL where SEGMENT1='309' AND TYPE_LOOKUP_CODE='RFQ' --PO_HEADER_ID= 110407

Select * from PO_LINES_ALL where PO_HEADER_ID=110407 -- PO_LINE_ID=173282

Select * from PO_LINE_LOCATIONS_ALL where PO_LINE_ID= 173301 --LINE_LOCATION_ID= 264455

5 How to Create Quotation and Perform Quote Analysis in Oracle Apps

A quotation is a supplier’s response to RFQ. In this article we will discuss how a quotation

can be prepared from RFQ form.

5.1 Functional Flow

Fig.23.Completed RFQ

The above picture shows a completed RFQ form. Now we will create quotations based on the response from the suppliers with relevant to this RFQ form.

You should get two new quotations against the two suppliers. (Here my quotation numbers

are 504 and 505).

Now, the corresponding supplier will send the quotation to quote for the RFQ using

21 Apr. 23

two ways:

1. Purchasing -> RFQs and Quoatations -> Quotations and entering the quotation with the

supplier name as the one which we specified in the RFQ suppliers.(Fig.19.)

Fig.24. Quotations entered by Supplier

2. The second method is to create quotation directly from the RFQ:

Now we will create quotations based on the response from the suppliers with rel-evant to this RFQ form.

Navigate to Tools>> Copy Document

Fig.25. Copy RFQ Document

Here we have selected the second supplier and entering the quotation sent by the supplier.

Click OK button.

Fig.26. Quotation Number

21 Apr. 23

Navigate to RFQ’s and Quotations>> Quotations and query for Quotation (504)

Fig.27.a.Quotation(1)

Notice that the quotation has been created from RFQ number 308. Change the status to Active. Similarly repeat the steps for Quotation number 505 and save it.

Fig.27.b Quotation(2)

Quote Analysis

Quote analysis is the process of reviewing the quotations given by the suppliers.

The best quotation will be selected by analyzing certain factors like price, quality, delivery

time etc.

Navigate to RFQ’s and quotations>> Quote Analysis

21 Apr. 23

Query by RFQ number and click Find button.

Fig.28. Find Quotations

Fig.29. Analyze Quotations

Here you can analyze all the quotations sent by the suppliers and select the best supplier

and click Approve Entire Quotation button.

Fig.30.Approve Quotation

21 Apr. 23

Click OK.

Fig.31. Approval Status

The next step is create a Purchase Order based on this Quotation

6 Steps to create a Purchase order (PO) in Oracle Apps

A Purchase order is a commercial document and first official order issued by the

buyer to the supplier, indicating types, quantities, and agreed prices for products or services

the supplier will provide to the buyer.

Basically, there are four types of Purchase Orders, viz

Standard Purchase

Order

Used for One-time purchases for goods and services. Here you know

the item, price, payment terms an delivery schedule

Planned Purchase

Order

Created when you have long-term agreement with the supplier. You

must specify the details of goods and services, payment terms and

the tentative delivery schedule

Blanket Purchase

Agreement

Created when the details of items and services, payment terms are

known but not specific about the delivery schedule

Contract Purchase

Agreement

Created when the terms and conditions of a purchase are known

but specific goods and services are not.

21 Apr. 23

6.1 Functional Flow

Let’s create a Standard Purchase Order.

Here, we will Auto Create a Purchase Order based on Approved Requisition.

Navigation: Purchasing>> Auto Create

Enter requisition number and click Find to navigate to Auto Create documents window

Fig.32. Find Requisition Lines

Fig.33. Auto Create Document

Select your Requisition Line by ticking the check box next to the Requisition Line

Action: Create

Document Type: Standard PO

Grouping: Default

21 Apr. 23

Click Automatic button and click create button in the New Document form. By clicking

Automatic button, a standard PO is created based on the details provided in the Purchas-

ing requisition.

You can select Supplier either in the New Document form or in the Purchase Order form

Fig.34. New Document

Fig.35. Auto Create a PO

Status represents the status of the document. Incomplete is the default status for all pur-

chase orders until they are submitted for the first time for approval.

Click Shipments button.

Shipment number, Org, Ship-to, UOM, Quantity and Need-by-date are shown by de-

fault. These fields can be edited as needed. You can split the lines and can change the ship-

21 Apr. 23

to Organization, quantity of items to be shipped and delivery date.[you can request the sup-

plier to supply some of the quantities to be supplied by the need-by date you provided and

rest of the quantities (to the same ship-to address or a different address) to a different

need-by-date]

Fig.36. Shipments

Click More tab. The default values are generated.

Fig.37. Shipments

Receipt Close Tolerance (%) determines when this line will close for receiving

Invoice Close Tolerance (%) determines when this line will close for invoicing

A Purchase Order has three main close points: Closed for Receiving, Closed for In-

voicing (these two relate to a specific line) and Purchase Order itself has a closed status.

21 Apr. 23

The entire order will not close automatically if all the lines are not closed for both receiving

and invoicing.

A tolerance of 0% indicates that it will close when the total amount received or invoiced

equals the amount on the order, whereas a close tolerance of 100% indicates that no re-

ceipts or invoices are required for this order, which will close the lines for receiving as soon

as the order is approved.

Reviewing these default close tolerances on a regular basis is a good idea to ensure orders

are properly controlled and closed with minimal intervention by the purchasing agent.

Select an option at Match approval Level.This determines the close point for an order.

2-way determines Purchase Order and Invoice quantities must match with in the tolerance

before the corresponding invoice can be paid.

Quantity Billed = Quantity Ordered

Invoice Price = Purchase Order Price

3-way determines Purchase order, receipt, and invoice quantities must match within toler-

ance before the corresponding invoice can be paid.



Quantity Billed = quantity Received

4-way determines Purchase order, receipt, accepted, and invoice quantities must match

within tolerance before the corresponding invoice can be paid.



Quantity Billed = quantity Received

Quantity Billed= Quantity Accepted

21 Apr. 23

Select an Invoice Match Option

The Invoice Match Option determines whether the invoice will be matched to the Receipt or

the PO when using 3-Way matching

Select PO when using 2-way and select PO or Receipt for 3-Way.

Enter the Receiving control information by clicking Receiving Controls button

Fig.38. Receiving Controls

Enter distributions for the shipments by clicking Distributions button

Fig.39. Distributions

21 Apr. 23

http://www.techmandate.com/wp-content/uploads/2013/07/po9.jpg

Click on More tab. The Requisition number from which this Purchase Order has been cre-

ated is shown by default.

Fig.40. Distributions

Click Terms to enter terms, conditions, and control information for purchase orders.

Fig.41. Terms

21 Apr. 23

Click Currency button to enter and change currency information

Save your work and click Approve button for Approval process.

Fig.42. Approve Document

Click OK and check the status in the Purchase Order

6.2 Base tables for Purchase Order (PO) in Oracle Apps

Base tables for Purchase Order are as follows:

21 Apr. 23

http://www.techmandate.com/base-tables-for-purchase-order-po-in-oracle-apps/

1. PO_HEADERS_ALL (SEGMENT1 column in this table represents the Document num-

ber)

This table stores header information of a Purchasing Document. You need one row for each

document you create.

The following are the documents that use PO_HEADERS_ALL

RFQ’s, Quotations, Standard Purchase Order, Planned Purchase Order, Blanket Pur-

chase Order and Contracts


PO_HEADER_ID, SEGMENT1, TYPE_LOOKUP_CODE, VENDOR_ID, VENDOR_SITE_ID,

CLOSED_CODE

PO_HEADER_ID is a unique system generated primary key and is invisible to the users.

SEGMENT1 is the document number

You can uniquely identify a row in PO_HEADERS_ALL using ORG_ID, SEGMENT1, and

TYPE_LOOKUP_CODE, or using PO_HEADER_ID.

Sample Queries:

Select PO_HEADER_ID, AGENT_ID, TYPE_LOOKUP_CODE, CLOSED_CODE from

PO_HEADERS_ALL where SEGMENT1= ‘6044’;

--PO_HEADER_ID=110415

2. PO_LINES_ALL

This table stores the line information of a Purchasing Document.


21 Apr. 23

PO_LINE_ID: Unique identifier of the Document Line

PO_HEADER_ID: Unique identifier of the Document Header (with reference to PO_HEADERS_ALL, PO_LINE_ID)

LINE_TYPE_ID: Unique identifier of Line_Type (with reference to PO_HEADERS_ALL, PO_LINE_ID and PO_HEADER_ID)

LINE_NUMBER: Line Number

ITEM_ID: Unique Item Identifier

ORG_ID: Unique Identifier of the Operating Unit

CLOSED_CODE: Status of the Document

Sample Queries:

Select PO_LINE_ID from PO_LINES_ALL where PO_HEADER_ID= 110415;

-- PO_LINE_ID= 173312

3. PO_LINE_LOCATIONS_ALL

This table contains the information related to purchase order shipment schedules and

blanket agreement price breaks. You need one row for each schedule or price break you at-

tach to a document line.

There following are the seven documents that use shipment schedules:

1. RFQs

2. Quotations

3. Standard purchase orders

4. Planned purchase orders

5. Planned purchase order releases

6. Blanket purchase orders

7. Blanket purchase order releases

Each row includes the location, quantity, and dates for each shipment schedule. Oracle Pur-

chasing uses this information to record delivery schedule information for purchase orders,

and price break information for blanket purchase orders, quotations and RFQs.

The following are the important columns of this table:

21 Apr. 23

LINE_LOCATION_ID: Unique Identifier of Document shipment schedule

PO_HEADER_ID: Unique Identifier of Document header. (with reference to

PO_HEADERS_ALL.po_header_id.)

PO_LINE_ID: Unique Identifier of Document line (with reference to

PO_LINES_ALL.po_line_id)

QUANTITY: Quantity ordered for Purchase Orders, RFQs and Quota

tions

QUANTITY_RECEIVED: Quantity received until today

QUANTITY_ACCEPTED: Quantity accepted after inspection

QUANTITY_REJECTED: Quantity rejected after inspection

QUANTITY_BILLED: Quantity invoiced by Oracle Payables

QUANTITY_CANCELLED: Quantity cancelled

TAXABLE_FLAG: Indicates whether the shipment is taxable

ORG_ID: Operating unit unique identifier

SHIP_TO_ORGANIZATION_ID: Unique identifier of Ship-to organization

Sample Queries:

Select LINE_LOCATION_ID from PO_LINE_LOCATIONS_ALL where PO_HEADER_ID= 110415

AND PO_LINE_ID= 173312;

--LINE_LOCATION_ID=264473

Select QUANTITY, QUANTITY_RECEIVED, QUANTITY_ACCEPTED, QUANTITY_BILLED,

QUANTITY_REJECTED, ORG_ID from PO_LINE_LOCATIONS_ALL where LINE_LOCATION_ID=

264473;

4. PO_DISTRIBUTIONS_ALL

This table contains the information related to accounting distribution of a purchase order

shipment line. You need one row for each distribution line you attach to a purchase order

shipment. There are four types of documents using distributions in Oracle Purchasing:

21 Apr. 23

1. Standard Purchase Orders

2. Planned Purchase Orders

3. Planned Purchase Order Releases

4. Blanket Purchase Order Releases

Each row includes the destination type, requestor ID, quantity ordered and deliver-to loca-

tion for the distribution.


PO_DISTRIBUTION_ID: This is the primary key for this table. It is a unique Document

Distribution identifier.

PO_HEADER_ID, PO_LINE_ID

LINE_LOCATION_ID: Unique Identifier of the Document Shipment Schedule (with

reference to PO_LINE_LOCATIONS_ALL, LINE_LOCATION_ID)

CODE_COMBINATION_ID: Unique Identifier of General Ledger Charge Account (with ref-

erence to GL_CODE_COMBINATIONS.CODE_COMBINATION_ID)

REQ_DISTRIBUTION_ID: Unique Identifier of a Requisition distribution (with Refer-

ence to PO_REQ_DISTRIBUTIONS_ALL.DISTRIBUTION_ID)

Sample Queries:

SELECT * FROM PO_DISTRIBUTIONS_ALL WHERE LINE_LOCATION_ID=264440

--PO_DISTRIBUTION_ID=270905

************Here when we need to find the purchase order for a particular Requisition, Fol-

low this order of querying***********you will know the requisition number through the seg-

ment1 of the po_requisition_headers_all************

select requisition_header_id,last_update_date,segment1,created_by from

po_requisition_headers_all where SEGMENT1='14373'

--requisition_number --segment1=14352 --requisition_header_id=181283

21 Apr. 23

select * from po_requisition_lines_all where requisition_header_id=181283

--requisition_line_id = 208463

select * from po_req_distributions_all where requisition_line_id=208463

--distribution_id = 206987

select * from po_distributions_all where req_distribution_id = 206987

--po_header_id=110414

select * from po_headers_all where po_header_id=110415

--segment1=6055 --PO Number

**************************

5. AP_SUPPLIERS

This table stores the general information about the suppliers.

Select * from AP_SUPPLIERS where VENDOR_NAME like 'IN070sup%'

--VENDOR_ID=35201

6. AP_SUPPLIER_SITES_ALL

This table stores information about the supplier sites. Each row includes the site address,

supplier reference, purchasing, payment, bank, and general information.

Select * from AP_SUPPLIER_SITES_ALL where VENDOR_ID=35201

--VENDOR_SITE_ID=6939

7. PO_RELEASES_ALL

This table stores information related to planned and blanket Purchase Order releases. Each

row includes the buyer, date, release status, and release number. Each release must have at

least one purchase order shipment.

8. AP_SUPPLIER_CONTACTS

21 Apr. 23

This table stores information about contacts related to Supplier site. Each row includes con-

tact name and site.

9. PO_ACTION_HISTORY

This table stores information about the approval and control history of a Purchasing Docu-

ment. This table stores one record for each approval or control action an employee takes on

a purchase order, purchase agreement, release or requisition.

7 Creating Receipts in Oracle Apps

Receipts are created to receive the items based on a Purchase Order

7.1 Functional Flow

Navigation>> Receiving>> Receipts

Enter the PO number and click Find button or you can simply click on Find button to see the expected receipts.

Fig.43. Finding a receipt

Check the Lines you want to receive.

In the lower part of the screen, Purchasing displays the following detail information for the

current shipment line: Order Type, Order Number, Source, Due Date, Item Description, Haz-

ard class, Destination, UN Number, Receiver Note, and Routing.

Fig.44. Receipt

21 Apr. 23

Click on Header and save the receipt to get the receipt number

Fig.45. Receipt Header

Navigate back to Purchase Order, query for your Purchase Order and select Shipments

button and click on Status tab to verify that the quantity ordered items match the quantity

received and status should be ‘Closed for Receiving’

Fig.46. Shipments

21 Apr. 23

7.2 Base tables for Receipts in Oracle Apps

1)RCV_SHIPMENT_HEADERS

2)RCV_SHIPMENT_LINES

3)RCV_TRANSACTIONS

Note:

SHIPMENT_HEADER_ID is the link between RCV_SHIPMENT_HEADERS and RCV_SHIP-

MENT_LINE

PO_HEADER_ID is the link between RCV_SHIPMENT_HEADERS and RCV_TRANSACTION

Queries

Select * from RCV_SHIPMENT_HEADERS where RECEIPT_NUM='8462' and

VENDOR_ID=35201

--SHIPMENT_HEADER_ID=4811913

Select * from RCV_SHIPMENT_LINES where SHIPMENT_HEADER_ID=4811913

-- SHIPMENT_LINE_ID=4802475 --ITEM_ID=87618

Select QUANTITY_SHIPPED, QUANTITY_RECEIVED,

UNIT_OF_MEASURE,ITEM_DESCRIPTION,ITEM_ID,SHIPMENT_LINE_STATUS_CODE from

RCV_SHIPMENT_LINES where SHIPMENT_HEADER_ID=4811913

21 Apr. 23

SELECT * FROM RCV_TRANSACTIONS WHERE SHIPMENT_HEADER_ID=4811913

8 Verify Items in Inventory

Navigate to Inventory>>On-Hand, Availability>>On-Hand Quantity

Query by your Item number and click Find

Fig.47. Query Material

Fig.48. Material Workbench

21 Apr. 23

Click Availability

Fig.49. Availability

8.1 Base tables for Inventory items in Oracle Apps

1) MTL_SYSTEM_ITEMS_B2) MTL_ONHAND_QUANTITIES

Note:

INVENTORY_ITEM_ID is the link between MTL_SYSTEM_ITEMS_B and

21 Apr. 23

MTL_ONHAND_QUANTITIES

Queries

Select * from MTL_SYSTEM_ITEMS_B where SEGMENT1='U1029' and

ORGANIZATION_ID=204

--INVENTORY_ITEM_ID=87618

Select * from MTL_ONHAND_QUANTITIES where INVENTORY_ITEM_ID=87618

9 Creating and Making payments for an Invoice in Oracle Apps

Entering the Supplier Invoice

This is the first step in creating an invoice. You can manually enter the details in

the Invoice or you can generate Invoices from PO. Receipts (you need to run a Concurrent

Request names ‘Pay on Receipt AutoInvoice Program’ from Purchasing Module)

9.1 Functional Flow

Navigate to Payables>>Invoices>>Entry>>Invoices

Select your Operating Unit

Type: Standard

Enter PO number and press tab. Supplier details should be populated automatically. Enter

the Invoice date, Invoice number and Amount.

Fig.50. Invoice Header

Matching the Invoice to either a Purchase Order or a Receipt

If your Invoice has a Purchase Order associated with it, then you can match the in-

voice quantity and price to that Purchase Order. If your Purchase Order is setup as a 2 –

way match, then you match the Invoice to the Purchase Order lines. If your Purchase Or-

der is setup as a 3-way match, then you match the Invoice to the Receipts.

Click on (B) Quick Match to match the Item related details to the Lines tab

21 Apr. 23

Now, Enter the amount to be invoiced for the item, Po line number and shipment number in

the Lines tab and save your work.

Now calculate tax for the amount you have to pay to the Supplier using Calculate Tax

button.

Fig.51. Invoice Lines

You will get the Tax amount in the Lines information along with their distributions for

reviewing.

Fig.51. Tax Lines

The total amount to be paid will be generated along with the Taxation in the Generals

Tab. Now you need to change the header amount to equivalent with this total to get your

invoice validated.

Fig.52. Total Amount

21 Apr. 23

Validating the Invoice

Once the invoice is entered into the system, you will need to run the Invoice Validation Pro-

cess to validate the Invoice. This can be done by clicking Actions button or running an ‘In-

voice Validation Process’.

The validation process performs a couple of processes. First, it checks to see if it should ap-

ply any matching holds. Then it will calculate and apply taxes, verify the GL period status,

verify exchange rates, and verify distribution information is valid.

Go to Actions, select Validate and click Ok.

Fig.53. Invoice Actions

The status should be Validated. Here my status shows Validated.

21 Apr. 23

In case if the status shows as Needs Revalidation it is because after Validating the In-

voice, the tax has been calculated and the price is updated which included the calculated

price. So we need to update the price at the top(Header) and do validation again.

Fig.54. Invoice Validated

Now the Invoice has been Validated, it’s time to make payment to the Supplier.

Click Actions, Pay in Full and OK.

Fig.55. Invoice Actions

Enter the Payment date, Bank Account, Payment Method, Payment Process Profile,

payment Document and Document Number and save your work.

Fig.56. Payments

21 Apr. 23

Click Invoice Overview to view the Invoice details.

Fig.57. Invoice Overview

Click Invoice Workbench and click Actions button and select Create Accounting and se-

lect Final Post and click OK.

Fig. 58. Create Accounting

The status of Accounted should be Yes. This step should transfer the details into the Gen-

eral Ledger

21 Apr. 23

Fig.59. Accounting Status

Go to Tools and click View accounting Events to see the result.

Fig.60. Accounting Events

Go to View>> Request>> Find to see the Concurrent Programs that are generated.

Fig.61. Requests

9.2 Base tables for Invoices in Oracle Apps

1) AP_INVOICES_ALL2) AP_INVOICE_LINES_ALL

21 Apr. 23

3) AP_INVOICE_DISTRIBUTIONS_ALL

Invoices

SELECT * FROM AP_INVOICES_ALL WHERE INVOICE_NUM='121342'

--INVOICE_ID=212192

--VENDOR_ID(LINK B/W AP INVOICE AND PO_VENDORS)=35201

SELECT * FROM AP_INVOICE_LINES_ALL WHERE INVOICE_ID=212192

SELECT * FROM AP_INVOICE_DISTRIBUTIONS_ALL WHERE INVOICE_ID=212008

--ACCCOUNTING_EVENT_ID=3324070

--INVOICE_DISTRIBUTION_ID BETWEEN 3431484 AND 3431487

Invoice Holds if any

SELECT * FROM AP_HOLDS_ALL --INVOICE_ID

Release for Holds

SELECT * FROM AP_HOLDS_RELEASE_NAME_V

Payments

SELECT * FROM AP_INVOICE_PAYMENTS_ALL WHERE INVOICE_ID=212192

--INVOICE_PAYMENT_ID=157479

--CHECK_ID=77758

--ACCTS_PAY_CODE_COMBINATION_ID=12854

SELECT * FROM AP_PAYMENT_SCHEDULES_ALL WHERE INVOICE_ID=212008

--BATCH_ID=161884

Accounting Entries

21 Apr. 23

SELECT *FROM AP_ACCOUNTING_EVENTS_ALL

SELECT * FROM AP_AE_HEADERS_ALL

SELECT * FROM AP_AE_LINES_ALL

Check Information

SELECT * FROM AP_CHECKS_ALL WHERE CHECK_ID=77758

--CHECKRUN_NAME=QUICK PAYMENT: ID=77758

Check Format

SELECT * FROM AP_CHECK_FORMATS;

SELECT * FROM AP_CHECKRUN_CONC_PROCESSES_ALL

10 Flow of Accounting Entries from AP to GL:

Oracle Table links to find out the payment Entries in GL for the invoice that has been valid-ated and Posted

--TO VIEW THE INVOICE DETAILS

SELECT * FROM AP_INVOICES_ALL WHERE INVOICE_NUM='11113'

--INVOICE_ID=212192

SELECT * FROM AP_INVOICE_DISTRIBUTIONS_ALL WHERE

INVOICE_ID=212192

--INVOICE_DISTRIBUTION_ID between 3432322 and 3432325

= SOURCE_DISTRIBUTION_ID_NUM_1 in XLA_DISTRIBUTION_LINKS

--TO VIEW THE SUB LEDGER ACCOUNTING DETAILS FOR THE INVOICE

SELECT * FROM XLA_DISTRIBUTION_LINKS WHERE SOURCE_DISTRIBU-

TION_ID_NUM_1 IN (3432322,3432323,3432324, 3432325)

--AE_HEADER_ID=4947840

21 Apr. 23

SELECT * FROM XLA_AE_LINES WHERE AE_HEADER_ID=4947840

--GL_SL_LINK_ID BETWEEN 6865867 AND 6865868

--TO VIEW THE ENTRY IN GL FROM XLA THROUGH GL_SL_LINK_ID

SELECT * FROM GL_IMPORT_REFERENCES

WHERE GL_SL_LINK_ID BETWEEN 6865867 AND 6865868

--JE_BATCH_ID=(2928906 AND 2928907)

SELECT * FROM GL_INTERFACE WHERE JE_BATCH_ID IN

( 2928906,2928907)

--TO VIEW JOURNAL IMPORT DETAILS:

SELECT * FROM GL_JE_HEADERS WHERE JE_BATCH_ID IN

(2928906,2928907)

--JE_HEADER_ID = 4682985 AND 4682986

SELECT * FROM GL_JE_LINES WHERE JE_HEADER_ID IN

(4682985,4682986) --CODE_COMBINATION_ID=12854

--PERIOD_NAME=Feb-14 --LEDGER_ID=1,650

SELECT * FROM GL_JE_BATCHES WHERE JE_BATCH_ID IN

(2928906,2928907)

--TO VIEW POSTING IN GL

SELECT * FROM GL_BALANCES

WHERE CODE_COMBINATION_ID=12854 AND CURRENCY_CODE='USD'

AND PERIOD_NAME='Feb-14' AND LEDGER_ID=1

21 Apr. 23

procure to pay cycle in r12

Documents

oracle apps23

oracle apps17

oracle apps27

oracle apps8

oracle apps40

oracle apps6

oracle apps5

oracle apps9