Oracle Procure to Pay (P2P ) Cycle - Oracle Purchasing

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Oracle Procure to Pay (P2P ) Cycle - Oracle Purchasing 

Procure to Pay Lifecycle is one of the important Process in Oracle Applications. Procure to Pay means Procuring Raw Materials required to manufacture the final or finished Goods from a Supplier to Paying the Supplier from whom the material was purchased.

Following is the steps for P2P Cycle :

1- Purchase Requisition (PR) Creation      - Purchasing Module

2- Tendering (RFQ-Quotations) - Purchasing Module( Sourcing )

3- Purchase Order (PO) Creation-Purchasing Module( Sourcing )

4- Receipts (Inspection - Receiving) - Inventory Module 

5- Invoice Creation - Payable Module

6- Payments to suppliers - Payable Module

7- Bank reconciliations - Cash Management Module  

1: Creation of Requisition

Create the Purchase  requisition from below navigation

Enter the required details to complete PR.

Enter the Charge  Account.

 

Save and Submit for Approval

 

Check the requisition status

 Query for the Requisition Number and click Find.

Status

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

  

2: Tendering Process (RFQ - Quotation)

2.1- Request for Quotation (RFQ)

 Create Request for Quotation (RFQ)

2.2- Quotation creation

Create the Quotation in the system to generate the PO. ( You can use the Sourcing for Quote analysis and awarding the Quote)

3 -Purchase Order (PO) Creation

Create PO from  “Autocreate Documents” Form. 

Follow the below Navigation

 Query for the Requisition

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

  

Click on “Create” button to create a Purchase order

  

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

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

Click Save and submit for Approval.

     
Now PO is approved                                

  

4: Creation of Receipts

Navigation to for receipt

Query with the Purchase order created in the above stage.

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

  

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

Onhand verification 

 Go to any Inventory Responsibility and follow the below Navigation

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

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

  

5: 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.

 Check the status of the program.

In Payables module / You can optionally create manual invoice and then matched with PO.

Change to any Payables Responsibility and open the invoices Form.

Query for the Purchase order as below,

                                   

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

  

Below screenshot will give you the status of the invoice

  

6: Payments to suppliers 

Make the payment against the invoice 
Below is the payment window.

7: Bank Reconciliation in CM

Reconcile the bank in Cash Management module against that payment then create accounting and transfer the Journal entries into General Ledger (GL).

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