P2P Cycle Made easy 2013

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Ketul Patel

P2P (PROCURE TO PAY) CYCLE.



1) Create Requisition:
Requisition is nothing but a formal request to buy something (like Inventory material, office
supplies etc) needed for the enterprise. Only an employee can create one. There are two
types of requisitions:
Internal Requisition: Internal requisitions provide the mechanism for requesting and
transferring material from one inventory to other inventory.
Purchase requisition: Unlike Internal requisitions, Purchase requisitions are used for
requesting material from suppliers.
Underlying Tables:
PO_REQUISITION_HEADERS_ALL
PO_REQUISITION_HEADERS_ALL stores information about requisition headers. You need
one row for each requisition header you create. Each row contains the requisition number,
preparer, status, and description.
REQUISITION_HEADER_ID is the unique systemgenerated requisition number.
REQUISITION_HEADER_ID is invisible to the user. SEGMENT1 is the number you use to
identify the requisition in forms and reports.
PO_REQUISITION_HEADERS_ALL is one of three tables storing requisition information.
PO_REQUISITION_HEADERS_ALL corresponds to the Header region of the Requisitions
window. SEGMENT1 provides unique values for each row in the table in addition to
REQUISITION_HEADER_ID.


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PO_REQUISITION_LINES_ALL
PO_REQUISITION_LINES stores information about requisition lines. You need one row for
each requisition line you create. Each row contains the line number, item number, item
category, item description, needby date, deliverto location, item quantities, units, prices,
requestor, notes, and suggested supplier information for the requisition line.
LINE_LOCATION_ID identifies the purchase order shipment line on which you placed the
requisition. LINE_LOCATION_ID is null if you have not placed the requisition line on a
purchase order. BLANKET_PO_HEADER_ID and BLANKET_PO_LINE_NUM store the
suggested blanket purchase agreement or catalogue quotation line information for the
requisition line. PO_REQUISITION_LINES is one of three tables storing requisition
information. This table corresponds to the Lines region of the Requisitions window.
PO_REQ_DISTRIBUTIONS_ALL
PO_REQ_DISTRIBUTIONS_ALL stores information about the accounting distributions
associated with each requisition line. Each requisition line must have at least one accounting
distribution. You need one row for each requisition distribution you create. Each row includes
the Accounting Flex field ID and requisition line quantity. PO_REQ_DISTRIBUTIONS_ALL is
one of three tables storing your requisition information. This table corresponds to the
requisition Distributions window, accessible through the Requisitions window.

2) Create Purchase Order:
There are 4 types of Purchase Orders:
1. Standard PO: A Standard PO is created for onetime purchase of various items.
2. Planned PO: A Planned PO is a longterm agreement committing to buy items or
services from a single source. You must specify tentative delivery schedules and all details
for goods or services that you want to buy, including charge account, quantities, and
estimated cost.
3. Blanket agreement: A Blanket PO is created when you know the detail of the goods or
services you plan to buy from a specific supplier in a period, but you do not know the detail
of your delivery schedules.
4. Contract agreement: Contract purchase agreements are created with your suppliers to
agree on specific terms and conditions without indicating the goods and services that you
will be purchasing.
Underlying Tables:
PO_HEADERS_ALL
PO_HEADERS_ALL contains header information for your purchasing documents. You need
one row for each document you create. There are six types of documents that use
PO_HEADERS_ALL:
RFQs
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Quotations
Standard purchase orders
Planned purchase orders
Blanket purchase orders
Contracts
Each row contains buyer information, supplier information, brief notes, foreign currency
information, terms and conditions information, and the status of the document. Oracle
Purchasing uses this information to record information that is related to a complete
document.
PO_HEADER_ID is the unique systemgenerated primary key and is invisible to the user.
SEGMENT1 is the systemassigned number you use to identify the document in forms and
reports.
PO_LINES_ALL
PO_LINES_ALL stores current information about each purchase order line. You need one
row for each line you attach to a document. There are five document types that use lines:
RFQs
Quotations
Standard purchase orders
Blanket purchase orders
Planned purchase orders
Each row includes the line number, the item number and category, unit, price, tax
information, matching information, and quantity ordered for the line. Oracle Purchasing uses
this information to record and update item and price information for purchase orders,
quotations, and RFQs.
The QUANTITY field stores the total quantity of all purchase order shipment lines (found in
PO_LINE_LOCATIONS_ALL).
PO_DISTRIBUTIONS_ALL (REQ_HEADER_REFERENCE_NUM in Distributions table is
the Requisition number for this PO)
PO_DISTRIBUTIONS_ALL contains accounting distribution information for 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:
Standard Purchase Orders
Planned Purchase Orders
Planned Purchase Order Releases
Blanket Purchase Order Releases
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Each row includes the destination type, requestor ID, quantity ordered and deliverto
location for the distribution. Oracle Purchasing uses this information to record accounting
and requisition information for purchase orders and releases.
PO_DISTRIBUTIONS_ALL is one of five tables storing purchase order and release
information.

3) Create Receipt:

A receipt is a written acknowledgment that a specified article or sum of money has been
received. A receipt records the purchase of goods or service. It is not the same as an
invoice.
Create a receipt to receive the items in the Purchase Order.
Receipt Tables are:
RCV_SHIPMENT_HEADERS
RCV_SHIPMENT_HEADERS stores common information about the source of your receipts
or expected receipts. You group your receipts by the source type and the source of the
receipt. Oracle Purchasing does not allow you to group receipts from different sources under
one receipt header.
There are two receipt source types, Supplier and Internal Order, that you need to use when
receiving against different source document types. You use a receipt source type of
Supplier when receiving items that you ordered from an external supplier using a purchase
order. When you receive items that are part of an interorganization transfer, or when
receiving items that you request from your inventory using an internal requisition, the receipt
type would be Internal Order. The Internal Order receipt source type populates the
ORGANIZATION_ID column.
Oracle Purchasing creates a receipt header when you are entering your receipts or when
you perform interorganization transfers using Oracle Inventory. When Oracle Inventory
creates a receipt header for an in-transit shipment, the receipt number is not populated until
you receive the shipment.
RCV_SHIPMENT_LINES (Lines Table has PO_HEADER_ID)
RCV_SHIPMENT_LINES stores information about items that have been shipped and/or
received from a specific receipt source. RCV_SHIPMENT_LINES also stores information
about the default destination for in-transit shipments.





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4) Create Invoice in Payables:
Once the goods are received, its time to pay the vendor for the goods purchased and hence
the invoices are created.
Invoice Tables:
AP_INVOICES_ALL
AP_INVOICES_ALL contains records for invoices you enter. There is one row for each invoice you
enter. An invoice can have one or more invoice distribution lines. An invoice can also have one or
more scheduled payments.
AP_INVOICES_LINES_ALL
AP_INVOICE_LINES_ALL is a new table introduced in R12 to represent the data stored in invoice
lines.
AP_INVOICE_DISTRIBUTIONS_ALL
AP_INVOICE_DISTRIBUTIONS_ALL holds the distribution line information that you enter for
invoices. There is a row for each invoice distribution. A distribution line must be associated
with an invoice. An invoice can have multiple distribution lines. Your Oracle Payables
application automatically creates rows in this table when:
1) You choose a distribution set at the invoice level.
2) You import expense reports.
3) You match an invoice to a purchase order or receipt; it uses information from the matched
purchase order or receipt.
4) You import invoices via the Open Interface Import process.
5) You select to automatically calculate tax.
6) You select to automatically do withholding.
Each invoice distribution line has its own accounting date. When you account for an invoice,
your Oracle Payables application creates accounting events, accounting entry headers and
accounting entry lines for those distribution lines that have accounting dates included in the
selected accounting date range for the Payables Accounting Process.
Accounting Entries Tables:
AP_ACCOUNTING_EVENTS_ALL
AP_AE_HEADERS_ALL
AP_AE_LINES_ALL

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5) Making a Payment:
Go to the Invoice window and query the invoice you want to pay. You would see Amount paid as 0.00
before you make a payment.
Payment Tables:
AP_INVOICE_PAYMENTS_ALL
AP_INVOICE_PAYMENTS_ALL contains records of invoice payments that you made to
suppliers. There is one row for each payment you make for each invoice. There is one
payment and one invoice for each payment in this table. Your Oracle Payables application
updates this table when you confirm an automatic payment batch, enter a manual payment,
or process a Quick payment. When you void a payment, your Oracle Payables application
inserts an additional payment line that is the negative of the original payment line.
For manual payments and Quick payments, this table corresponds to the Select Invoices
window in the Payment workbench.
AP_PAYMENT_SCHEDULES_ALL
AP_PAYMENT_SCHEDULES_ALL contains information about scheduled payments for an
invoice. You need one row for each time you intend to make a payment on an invoice. Your
Oracle Payables application uses this information to determine when to make payments on
an invoice and how much to pay in an automatic payment batch.
Values for HOLD_FLAG may be Y to place a hold on the scheduled payment, or N not to
do so. Values for PAYMENT_STATUS_FLAG may be Y for fully paid payment schedules,
N for unpaid scheduled payments, or P for partially paid scheduled payments. For
converted records, enter a value for AMOUNT_REMAINING.
This table corresponds to the Scheduled Payments window.
AP_CHECKS_ALL
AP_CHECKS_ALL stores information about payments issued to suppliers or refunds received
from suppliers. You need one row for each payment you issue to a supplier or refund received
from a supplier. Your Oracle Payables application uses this information to record payments you
make to suppliers or refunds you receive from suppliers.
AP_CHECK_FORMATS
AP_BANK_ACCOUNTS_ALL
AP_BANK_BRANCHES
AP_TERMS

6) Transfer to General Ledger