Procure to Pay (P2P) 

is a business process which covers the process of requesting,

purchasing, receiving, paying for and accounting for goods and services.The procurement
function in a Business Organization can range from office supplies to shop floor inventory
required to manufacture goods for shipment.Procure to Pay (P to P) cycle is one of the
important business process cycles in Oracle Applications. 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.The P to P cycle is implemented by multiple
modules which are part of the EBS Suite. The primary modules
are Purchasing and Payables with an integration with other modules like iProcurement,
iSupplier, iExpenses , Services Procurement, Sourcing, Procurement Contracts,
Approval Management, EBTax, and Payments. Sometimes considered as an another
module, SubLedger  Accounting is a functionality which is integrated into other modules to
generate accounting entries for transactions generated for those modules.
This article discusses the steps involved in a Procure to Pay (P to P) cycleapplied in
many business organizations.
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.
 Procure to pay process in oracle APPS R12

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
organization structure specified in this article is based on the Multi-Organization concepts as
applicable to Oracle Apps R12 version. 
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
organization (say Chicago manufacturing plant) in the Organization Structure has the
requirement for that item. It is also essential to know the Operating Unit (XYZ Sedan)
corresponding to the Inventory Organization 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 follows:
1.    There is a single Business Group called ‘XYZ Group’ which is like a parent group for all
the legal entities. A Business Group is not a legal entity and is not a registered enterprise.
2.  The Primary Ledger is required for recording all the financial transactions.The 3
primary ledgers are ‘XYZ Motors Ledger US’ ‘XYZ Motors Ledger India’ and ‘XYZ Cement
Ledger’.
3.   There can be one or more Legal Entities. Legal Entities require compliance with local
laws both legal and accounting related. In this example, there are 3 Legal Entities viz. ‘XYZ
Motors US’, ‘XYZ Motors India’ and ‘XYZ Cement China’.
4.    Operating Units are defined for each Legal Entity. 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. In this example, there are  2 Operating
Units for the Legal Entity ‘XYZ Motors US’ and 1 Operating Unit for the Legal Entity ‘XYZ
Motors India’ and ‘XYZ Cement’
5.    Inventory Organizations are defined for each Operating Unit. These represent the
units where actually production/manufacturing may take place. In the diagram, there are
one or more inventory organizations for each Operating Unit.
Multi Organization Structure in Oracle Apps R12
2.How to create a Purchase Requisition in Oracle Apps
Purchase Requisition is a formal request intended to procure/buy something that is needed
by the organization. It is created and approved by the department requiring the goods and
services.
 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.
Often, the names of suggested supply sources are also included.
Basically, requisitions are of two types:
Internal requisition and Purchase requisition
Internal Requisitions are created if the Items are to be obtained from one Inventory
location to another location within the same organization. Here the source of the requisition
would be INVENTORY. There is no approval process for internal requisition.
Purchase Requisitions are created if the goods are obtained from external suppliers. Here
the source of the requisition would be SUPPLIERS. The purchase requisitions are sent for
approvals.
Let’s create a Purchase Requisition:
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 purchased
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 different 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.
 Purchase Requisition

In the Source details tab, you can input detailed information. You can give a specific 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 EBSautomatically when a
requisition is created from a blank order, a contract or a quotation.
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.
Contract num along with rev references the associated contract agreement with the
supplier 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.
Requisitions can be added in any currency set up in EBS by identifying thecurrency
code and exchange rate type on currency tab
Select the Distributions tab and enter the charge account

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.
Approve button is highlighted
 Submit for Approval

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

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‘Requisition
summary’. Here you can get your ‘requisition’ details by entering your requisition
number.
Requisitions>> Requisition Summary
 Requisition Summary

Here, our requisition is approved. You can also view the ‘Action History’ of the requisition
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:
 Action History of a Purchase Requisition

Table flow while creating Purchase Requisition

The base tables for reference while creating a purchase requisition in Oracle Apps is as
follows:
1.      PO_REQUISITION_HEADERS_ALL (SEGMENT1 column in this table represents the
requisition number)
This table stores Header information of a Purchase Requisition.
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  prepared
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= 14303; –14303 is our Requisition Number
Result: REQUISITION_HEADER_ID = 181232
REQUISITION_HEADER_ID is the link
betweenPO_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.
Important columns of this table:
REQUISITION_HEADER_ID:        It is a unique system generated Requisition identifier
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
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
REQUISITION_HEADER_ID=181232;
Result: REQUISITION_LINE_ID = 208442
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 includes the
Accounting Flexfield ID and Requisition line quantity.
Important columns of this table:
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= 208442;
Result: DISTRIBUTION_ID= 206959
You can view results by executing the following SQL commands:
SELECT CREATION_DATE, AUTHORIZATION_STATUS, SEGMENT1,
TYPE_LOOKUP_CODE from PO_REQUISITION_HEADERS_ALL where SEGMENT1=
’14303′;

Viewing results by executing SQL command

SELECT CREATION_DATE, CREATED_BY, ORG_ID, REQ_LINE_QUANTITY FROM

PO_REQ_DISTRIBUTIONS_ALL WHERE REQUISITION_LINE_ID=208442;

viewing results by executing SQL command

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

A 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.
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.

Requisition Headers Summary

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

14303).
Navigate to Purchasing>> Auto Create
Press Clear button and enter your Requisition number and click find
 Find Requisition Lines

Your Requisition summary is shown in the next screen. Check box

yourRequisition line and in the Document Type, select RFQ and
clickAutomatic button to Auto Create RFQ.
 Auto Create documents

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

click create button
 New Document

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

requisition.

Auto Create RFQ

Click Suppliers button and enter the details of the Suppliers to whom you

want to send this RFQ.
 RFQ Suppliers

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

RFQ Terms

Click Price Breaks button
The Price Breaks form is generally used to enter pricing information for
theRFQ 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 payment terms, quantity etc.
 RFQ Price Breakdowns

In the above picture, the first line shows the actual quantity is 250and the
actual price is 10. In the second line, we have asked for a discount of 5%
and the price has changed to 9.5. In the third line, we have increased the
quantity of items to 350 and asked for a 15% discount. Notice that the price
is changed to 8.5.
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.
 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
aboveRFQ form.
Run the Concurrent Request called Printed RFQ Report to print this RFQ to
send it to the suppliers
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.
Create a Request for Quotation (RFQ). Refer below article on how to
create a RFQ form.
 RFQ

The above picture shows a completed RFQ form. Now we will

createquotations based on the response from the suppliers with relevant to
thisRFQ form.
Navigate to Tools>> Copy Document
 Copy RFQ document

Here we have selected first supplier and entering the quotation sent by the
supplier. Click OK button.

Quotation number

Similarly repeat the above step for the other two customers and click OK.
You should get three new quotations against the three suppliers. (Here my
quotation numbers are 500, 501 and 502).
Navigate to RFQ’s and Quotations>> Quotations
Query for Quotation (500)
 Quotation

Notice that the quotation has been created from RFQ number 307. Change

the status to Active. Similarly repeat the steps for Quotation
number 501and 502 and save it.
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
Query by RFQ number and click Find button
Find Quotations
 Analyze Quotations

Here you can analyze all the quotations sent by the suppliers and select the
best supplier and click Approve Entire Quotation button

Approve Entire Quotation

Click OK
The next step is create a Purchase Order based on this Quotation
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 Used for One-time purchases for goods
Purchase and services. Here you know the item,
Order price, payment terms an delivery schedule
Planned Created when you have long-term
Purchase agreement with the supplier. You must
Order specify the details of goods and services,
payment terms and the tentative delivery
schedule
Blanket Created when the details of items and
Purchase services, payment terms are known but
Agreement not specific about the delivery schedule
Contract Created when the terms and conditions of
Purchase a purchase are known but specific goods
Agreement and services are not.
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

Find Requisition lines

 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
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 Purchasing requisition.
You can select Supplier either in the New Document form or in
thePurchase Order form

New document
 Auto Create to PO

Status represents the status of the document. Incomplete is the default

status for all purchase 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 default. These fields can be edited as needed. You can split the
lines and can change the ship-to Organization, quantity of items to be
shipped and delivery date.
[you can request the supplier 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]

Shipments

Click More tab. The default values are generated

 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 Invoicing (these two relate to a specific line)
and Purchase Order itself has a closed status.
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 receipts 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 tolerance before the corresponding invoice can be paid.
Quantity Billed = Quantity Ordered
Invoice Price = Purchase Order Price
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 Ordered
Invoice Price = Purchase Order Price
Quantity Billed = quantity Received
Quantity Billed= Quantity Accepted

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
Controlsbutton
 Receiving Controls

Enter distributions for the shipments by clicking Distributions button

 Distributions

Click on More tab. The Requisition number from which this Purchase Order
has been created is shown by default.
 Distributions

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

orders.
 Terms

Click Currency button to enter and change currency information

Save your work and click Approve button for Approval process.
 Approve Document

Click OK and check the status in the Purchase Order

Base tables for Purchase Order (PO) in Oracle Apps
Base tables for Purchase Order are as follows:
1.  PO_HEADERS_ALL (SEGMENT1 column in this table represents
the Document number)
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 Purchase Order and Contracts
Important columns of this table:
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, TYPE_LOOKUP_CODE FROM
PO_HEADERS_ALL WHERE SEGMENT1= ‘311’;

SQL Query

SELECT PO_HEADER_ID, AGENT_ID, TYPE_LOOKUP_CODE,

CLOSED_CODE FROM PO_HEADERS_ALL WHERE SEGMENT1= ‘6044’;

2.  PO_LINES_ALL
This table stores the line information of a Purchasing Document.
Important columns of this table:
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=
110334;

SQL Query

SELECT LINE_TYPE_ID FROM PO_LINES_ALL WHERE

PO_HEADER_ID= 110334 AND PO_LINE_ID= 173263;

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 attach 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 Purchasing 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:
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 Quotations
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= 110334 AND PO_LINE_ID= 173263;

SQL Query

SELECT QUANTITY, QUANTITY_RECEIVED, QUANTITY_ACCEPTED,

QUANTITY_BILLED, QUANTITY_REJECTED, ORG_ID FROM
PO_LINE_LOCATIONS_ALL WHERE LINE_LOCATION_ID= 264421;

SQL Query

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:
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 location for the distribution.
Important columns of this table:
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 reference to
GL_CODE_COMBINATIONS.CODE_COMBINATION_ID)
REQ_DISTRIBUTION_ID:            Unique Identifier of a Requisition
distribution (with Reference to
PO_REQ_DISTRIBUTIONS_ALL.DISTRIBUTION_ID)
Sample Queries:
SELECT PO_DISTRIBUTION_ID FROM PO_DISTRIBUTIONS_ALL
WHERE PO_HEADER_ID= 11033;

SQL Query

SELECT CODE_COMBINATION_ID FROM PO_DISTRIBUTIONS_ALL

WHERE PO_DISTRIBUTION_ID= 13033;
 SQL Query

5.      VENDORS_ALL
This table stores the general information about the suppliers.
6.      PO_VENDOR_SITES_ALL
This table stores information about the supplier sites. Each row includes the
site address, supplier reference, purchasing, payment, bank, and general
information.
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.      PO_VENDOR_CONTACTS
This table stores information about contacts related to Supplier site. Each
row includes contact name and site.
9.      PO_ACTION_HISTORY
This table stores information about the approval and control history of a
Purchasing Document. This table stores one record for each approval or
control action an employee takes on a purchase order, purchase agreement,
release or requisition.
Creating Receipts in Oracle Apps
Receipts are created to receive the items based on a Purchase Order
Navigation>> Receiving>> Receipts
Enter the PO number and click Find button or you can simply click
on Findbutton to see the expected receipts.
 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, Hazard class, Destination, UN Number,
Receiver Note, and Routing.
 Receipt

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

 Receipt Header

Navigate back to Purchase Order, query for your Purchase Order and
selectShipments button and click on Status tab to verify that the quantity
ordered items match the quantity received and status should be ‘Closed for
Receiving’

Shipments
Verify Items in Inventory
Navigate to Inventory>> On-Hand, Availability>> On-Hand Quantity
Query by your Item number and click Find
Query Material
 Material Workbench

Click Availability
 Availability
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 P.O Receipts (you
need to run a Concurrent Request named ‘Pay on Receipt AutoInvoice
Program’ from Purchasing Module)
Navigate to Payables>> Invoices>> Entry>> Invoices
Select your Operating unit
Type: Standard
Enter P.O number and press tab. Supplier details should be populated
automatically. Enter the Invoice date, Invoice number and Amount.
 Invoice Workbench

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 invoice 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 Order is setup as a 3-way match,
then you match the Invoice to the Receipts.
Click on Match button to match the Invoice to the Purchase Order.
 Matching Purchase order

Click Find
Select the lines you want to match and click Match

Match to Purchase order

Validating the Invoice

Once the invoice is entered into the system, you will need to run the Invoice
Validation Process to validate the Invoice. This can be done by
clickingActions button or running an ‘Invoice Validation Process’.
The validation process performs a couple of processes.  First, it checks to
see if should apply 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.

Invoice Actions

The status should be Validated or Needs Revalidation.

Here my status shows as Needs Revalidation

The reason it says Needs Revaluation because after Validating the Invoice,

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 and
dovalidation again.
 Invoice Workbench

Now the status should be validated.

 Invoice Workbench

Now the Invoice has been Validated, it’s time to make payment to the
Supplier.
Click Actions, Pay in Full and OK.
Enter the Payment date, Bank Account, Payment Method, Payment
Process Profile, payment Document and Document Number and save
your work.
Click Invoice Overview to view the Invoice details.
 Invoice Overview

Click Invoice Workbench and click Actions button and select Create

Accounting and select Final Post and click OK.
The status of Accounted should be Yes.  This step should transfer the details
into the General Ledger
Go to Tools and click View accounting Events to see the result.
Go to View>> Request>> Find to see the Concurrent Programs that are
generated.

1. Run the Create Accounting program after creating an invoice to post

entries to the General Ledger
2. Run the Create Accounting program after making payments to post
entries to the General Ledger.
As a newbie consultant, I always used to wonder why someone would have
run the accounting entries twice. If you are one of the professional
consultants or belong to the Chartered Accounting fraternity, you may
already know the answer.
Else, read on..
1. The reason for creating accounting entries after creating an invoice is to
ensure that the General Ledger is updated with the correct accounting
information for the following 2 types of accounts:
a) Accounts Payable A/C 
b) Merchandise A/C (incase of goods purchased) or Expense A/C (in
case of expense)
When a supplier invoice is created, the business is liable to pay for the
invoice and hence, the Accounts Payables A/C is credited. Since the
invoice is raised for purchasing goods or for an expense, the
correspondingMerchandise A/C or Expense A/C is debited.
Account   Dr Cr
Merchandise 100
A/C or Expense
A/C
Accounts 100
Payable A/C
2.  The reason for creating accounting entries after making a payment is to
ensure that the General Ledger is updated with the correct accounting
information for the following 2 types of accounts:
a) Cash A/C or Bank A/C
b)Accounts Payable A/C 
When the invoice is paid, the payment is made in Cash. Hence the Cash
A/C or Bank A/C is credited. Since the payment reduces the amount that
the company owes to the Supplier, the Accounts Payable
A/C is debited to the same extent.
Account   Dr Cr
Accounts   100  
Payable A/C
  Cash A/C   100