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P2p Process

The procure to pay (P2P) process involves purchasing a product, receiving it into inventory, processing the supplier's invoice for payment, and making payment. The key steps are: 1) Create a requisition to initiate the purchase 2) Create a purchase order to order the product 3) Receive the product into inventory by creating a receipt 4) Enter the supplier's invoice to process for payment 5) Make payment to the supplier 6) Transfer the accounting entries to the general ledger

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224 views21 pages

P2p Process

The procure to pay (P2P) process involves purchasing a product, receiving it into inventory, processing the supplier's invoice for payment, and making payment. The key steps are: 1) Create a requisition to initiate the purchase 2) Create a purchase order to order the product 3) Receive the product into inventory by creating a receipt 4) Enter the supplier's invoice to process for payment 5) Make payment to the supplier 6) Transfer the accounting entries to the general ledger

Uploaded by

nareshvenus
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Procure to Pay process which is also known as P2P cycle is followed by any

organization in any ERP system if they would like purchase any products (it
could raw materials, office supplies, infrastructure etc). Of course when
there is a purchase there should be a payment.  This entire process of
purchasing a product and making payment for that product to supplier is
called procure to pay process.

Though this process is not specific to oracle ERP system, screen shots shown
in the below are from Oracle ERP.

 Create Requisition
 Create Purchase Order
 Create Inventory Receipt
 Enter AP Invoice
 Make Payment
 Transfer to GL
 

Enter the below information like requisition type and item details as shown
below
Enter Quantity and Save Requisition. You can save the requisition number at
this stage.
Click Approve button and Submit for Approval
Once requisition is approved we will not be able to open the requisition
again. We can check the requisition details in Requisition summary form.

Navigation: Purchasing Responsibility > Autocreate


Enter requisition number which is saved and hit TAB to ensure you
requisition is valid. Make sure you empty the Ship-To and Buyer fields as it
might add un-necessary condition to your search query.
Once you find the requisition select it by enabling the checkbox and choose
the type of document you want to create. In this example we are converting
requisition into “Standard Purchase Order”. You also have the option to
convert requisition into RFQ.
Choose automatic if you wish to convert this single requisition into one
purchase order. Choose manual if you want to add multiple requisitions into
one purchase order.

In the below screen you can choose the supplier and supplier site. If you
skip here you will need to enter on Purchase Order form before you submit
PO for approval.
Once you click on Create button all requisition information is transferred to
Purchase Order Form.

Select Ship-To field carefully as this is required to create inventory receipt /


purchasing receipt.

Click Approve button and submit for approval. Assuming that you have
enough $ limit or it is approved by concerned person we will move on to
next step.

Now PO being sent to Supplier , we can expect the products to be delivered


to us. Once items / products are delivered to us we will create Receipt to
record the details of the products received.

We can create Receipt in purchasing module or inventory module.

Navigation: Purchasing Responsibility > Receiving > Receipts


Select the organization that you have selected in “Ship-To” filed of Purchase
order

Enter the Purchase order number on find screen and find it.
If your PO is found then it will open “Receipt Header” and “Receipts” form.
Move Receipt Header form side and check the line you would like to receive.
If sub inventory is not defaulted automatically choose sub inventory in which
you would like to receive the material like FGI, Stores etc.
Once you enter all the information Make sure to Save the Receipt.

Once you create a receipt for PO you will not be allowed to create another
receipt for the same PO. It is allowed only in case of partial receipts.

Along with items / products supplier will also send Invoice asking for
payment.

Navigation: Payables Responsibility > Invoices > Entry > Invoices


Enter the information as per the document (Invoice) received from supplier

Once the header information is entered we will match the invoice with
purchase order by clicking Match button.

Enter Purchase Order Number and Find it.


Once the PO is found select the “Match” checkbox and click Match button at
the bottom.

Once the PO is matched you can see the Total amount in General Tab as
shown below.

Click Calculate Tax button to add any tax if it is applicable.


The total amount on header should be equal to total of line amounts.

Click Actions Button and Select Validate option.


Make sure Invoice is validated correctly as shown below.

‘
Again click on Actions button and this time select “Create Accounting”
option. choose Final Post to send accounting information directly to GL and
post.

Once accounting is successful you will be greeted with the following


message.
Now in General Tab of Invoice you should be able to see the Status as
below.

Normally any company will wait for the due date to make payment. If
we choose to pay ahead also we can pay it.

Navigation: Scheduled Payments > Pay..1

Payments form will open as shown below.

Enter Payment Method and payment process profile details


Save your payment by clicking SAVE button.

Once payment is done we need to create accounting.


Click Actions button and select Final Post.

Finally, Make sure your payment is recorded in “View Payments” tab of your
invoice. You might need to re-query your invoice to see this information.
 

If you have any questions / comments please let us know in the comments
section.

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