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P2P (R12)

The document describes the key stages in the procure to pay (P2P) cycle in Oracle Applications R12. The 12 stages are: 1) choosing an item to procure, 2) creating a requisition, 3) checking the requisition status, 4) creating a purchase order, 5) creating receipts, 6) checking inventory levels, 7) viewing material transactions, 8) creating an invoice, 9) checking the invoice status, 10) creating accounting entries, 11) making a payment, and 12) updating the general ledger. The P2P cycle manages the process of procuring items, receiving them, invoicing, and paying suppliers in Oracle applications.

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K.c. Nayak
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751 views29 pages

P2P (R12)

The document describes the key stages in the procure to pay (P2P) cycle in Oracle Applications R12. The 12 stages are: 1) choosing an item to procure, 2) creating a requisition, 3) checking the requisition status, 4) creating a purchase order, 5) creating receipts, 6) checking inventory levels, 7) viewing material transactions, 8) creating an invoice, 9) checking the invoice status, 10) creating accounting entries, 11) making a payment, and 12) updating the general ledger. The P2P cycle manages the process of procuring items, receiving them, invoicing, and paying suppliers in Oracle applications.

Uploaded by

K.c. Nayak
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Procure To Pay(Complete Functional Flow in apps r12)..............

Procure To Pay Cycle in Oracle Apps R12 (P2P Cycle)


Stage 1: Choosing an Item Let us choose an item to be procured in our example. Go to Purchasing Responsibility and follo the belo na!igation to chec" for the suitable item.

#he item pic"ed for our example should be purchasable item as abo!e. Clic" on tools and choose $Categories% to !ie the belo screen.

Stage &: Creation of Re'uisition (ollo the belo )a!igation to reach Re'uisition (orm.

Create a ne

Re'uisition for the item !ie ed in Stage 1.

Clic" on *istributions to +ie

the charge ,ccount.

Sa!e and Submit for ,ppro!al

)o note do n the Re'uisition number and open the $Re'uisition Summary (orm% to !ie the status of it. (or our -xample. Re'uisition number is: 1/011 Stage 2 : Chec"ing the Status of Re'uisition

3uery for the Re'uisition )umber and clic" (ind.

4ere for our example purpose. I "ept the submitted and appro!ed person has same and hence it sho s the status as appro!ed.

#o see the appro!al status. please follo

the belo

na!igation.

Stage / : Creation of Purchase 5rder (or creating a Purchase order. let us use the $,utocreate *ocuments% (orm. (ollo the belo )a!igation

3uery for the Re'uisition

Clic" on ,utomatic as sho n in the abo!e figure to create a Purchase 5rder

Clic" on $Create% button to create a Purchase order

+ie the shipment screen to change the $6atch ,ppro!al Le!el% to $&7 8ay%.

Clic" the $Recei!ing Controls% to ma"e sure that the $Routing% is made as $*irect Routing%

Clic" Sa!e and submit for ,ppro!al.

)ote do n the P5 )umber. Stage 1: Creation of Receipts

3uery

ith the Purchase order created in the abo!e stage.

Chec" the chec" box near to the lines that are recei!ed and clic" sa!e.

Clic" the $4eader 9utton% to !ie

the Receipt )umber.

Stage :: Chec"ing the 5n 4and Go to any In!entory Responsibility and follo the belo )a!igation

3uery for our Receipt and ma"e sure the 5rgani;ation is the same as recei!ed.

9elo screen 'uantities.

ill sho

that our in!entory has been increased by 1

Stage <: Chec" the 6aterial #ransactions (ollo the belo )a!igation to reach $6aterial #ransactions% (orm

3uery for the item and date as belo

9elo

screen sho s the source and transaction #ype

9elo

screen sho s you the Serial )umbers of the items recei!ed.

Stage 0: Creation of In!oice )a!igate to any Purchasing Responsibility and !ie Re'uests Submit the belo re'uests by pro!iding the Receipt number as Parameter to create an in!oice.

Chec" the status of the program.

Stage =: Chec"ing the In!oice


Change to any Payables Responsibility and open the in!oices (orm. 3uery for the Purchase order as belo .

Clic" $,ctions% 9utton then tic" the $+alidate Chec" 9ox% and press $5"% to !alidate the in!oice

9elo

screenshot

ill gi!e you the status of the in!oice

Stage 1>: Creation of ,ccounting and Payment 5nce in!oice got appro!ed. e can $Create ,ccounting% and $Create Payments% !ia $,ction% 9utton in the $In!oice (orm% as e !alidated the in!oice.

#hus the brief description of P&P cycle came to end.

changes in 11i and R12 in P2P cycle Procure to Pay


First lets 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 ust two steps. !t in"ol"es many steps. #ets see the steps and $racle %pplication in"ol"ed in performing those steps. 1. 2. *. Oracle Purchasing: &ou enter Suppliers of different materials and products you want to purchase to manufacture a finished good that your organi'ation plans to sell. Oracle Purchasing: &ou prepare a Request for Quotation (RFQ) and send it to different suppliers to get the (est and)or economical price for the product. Oracle Purchasing: +uppliers sends their quotations and you upload those quotations in $racle Purchasing to get the (est three quotes and further to get the one (est quote.

,.

Oracle Purchasing: &ou prepare a Purchase Order(PO) against the (est RF- to (uy the goods from the supplier who quoted the suita(le price and sends the P$ to that supplier Oracle Purchasing: /he supplier recei"es the confirmation of purchase from P$ and ships the ordered goods. &ou recei"e the goods enter a Goods Recei ed !ote (GR!) in $racle Purchasing. Oracle "n entory # Oracle $ssets: !ts up to you whether you want to recei"e the goods at your head office or you !n"entory directly. !n either case you mo"e the recei"ed goods to your different Raw 1aterial !n"entory from $racle Purchasing to $racle !n"entory and the !tem 2ount increases. !f the item is %sset /ype then it will mo"e to $racle %ssets at the time of !n"oice creation in $racle Paya(les. Oracle General %edger: $nce you mo"e the goods to $racle !n"entory4 it sends the 1aterial %ccounting to $racle General #edger. Oracle Paya&les: %fter this the supplier sends you the in"oice for the purchased goods and you 6nter or 1atch the in"oice against the P$ from $racle Purchasing in $racle Paya(les. %s said (efore4 if the item is %sset in nature then it will mo"e to $racle %sset. Oracle General %edger: 8hen you enter the in"oice it means that you ha"e created a #ia(ility against that supplier and also you ha"e recorded the e9pense incurred or asset purchased. $racle Paya(les sends the in"oice accounting to $racle General #edger. Oracle Paya&les: &ou pay the in"oice and settle the #ia(ility. Oracle General %edger: /he lia(ility is settled and your cash mo"ement account is updated. Oracle 'ash Manage(ent: %s you pay the in"oice $racle Paya(les sends the payment information to $racle 2ash 1anagement for Ban; Reconciliation. $nce reconciled4 $racle 2ash 1anagement sends the updated Ban;)2ash accounting entry to $racle General #edger. Oracle General %edger: &our cash at (an; is updated with actual (alance. Oracle Process Manufacturing(OPM) # Oracle )iscrete Manufacturing(O)M): &ou start the manufacturing of your final product. Both $P1 or $<1 requests the different raw materials from your in"entory organi'ations and manufactures a finished good. Oracle "n entory: %s the raw materials are issued to $P1 and $<1 the in"entory sends the issuing material accounting to General #edger and decreases the !tem 2ount from the Raw 1aterial +tore. %s the finished good is prepared4 $racle !n"entory recei"es the finished good in Finished Good +tore and increase the !tem 2ount. =ow the final product is ready to (e sold in the mar;et.
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