Introduction to Procure

to Pay Cycle
 Executive Summary
Objective of the Course
The Objective of this course is to provide a Conceptual as well as Hands on knowledge to the Oracle
Distribution Applications Users in creating PO,Receipts,Invoices and Payments.

How the Course is Designed

This Course is organized into xx sessions. Each session will have one or more class room units
followed by Hands on Exercises for the users to perform.

Learning Objectives
The participants are expected to learn the following by end of this Course
•Understand the basic requirements to create a Job,Position,Purchasing Options,Receiving
Options,Financial Options,Payable Options,Supplier,Approval Groups,RFQ,Purchase Order
,Receipts , Invoices and Payments .
•Understand the Basic setups required to work with Oracle P2P cycle.
•Creation of Job,Position,Purchasing Options,Receiving Options,Financial Options,Payable
Options,Supplier,Approval Groups,RFQ,Purchase Order ,Receipts , Invoices and Payments in
Oracle Applications.
 Course Plan

Session 1 Session 3
Overview Creation of Approval groups and Approval

Creation of Job,Position,Purchasing Assignments,Hierarchy and Buyer.

options,Receiving options and Financial Hands on Assignment

options.

Hands on Assignment

Session 2 Session 4
Creation of Document type,Payables Option Creation of RFQ and

and supplier. Purchase order.

Hands on Assignment Hands on Assignment

 Course Plan

Session 5 Session 6
Creation of Receipts and Invoices Creation of Banks and Payments

Hands on Assignment Hands on Assignment

 Unit Plan

Session 1

Overview
Case Study

Setting Up Application
Creation of Job and Position
Setting Up of Purchasing,Receiving and Financial
options
Hands on Assignment
 Unit Plan

Procure to Pay(P2P)

Overview of Procure to Pay Cycle in Oracle Apps 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. But this process is

not just two steps. It involves many steps. Let’s see the steps and Oracle

Application involved in performing those steps.

Unit Plan
 Unit Plan

Job:
Use this window to define Job

HRMS Management -> HRMS Manager -> Work Structures -> Job -> Description
 Unit Plan
Find Jobs window will display to choose existing one click on Find or to create
New Job click on New
 Unit Plan
Job Group number will defaultly created.
Click on Name Job Flexfield sub-window will display give Job Code and Job
Name and click on ok.
 Unit Plan

Position:
Before creation of Position First give hr organization classification to business
group

Inventory>Organizations>Organization
 Unit Plan
Open our own Business Group and add HR Organization in Organization
Classification
 Unit Plan

Now create Position

HRMS>Management>HRMS Manager>Work Structure>Position>Description
 Unit Plan

Find Position window will display to choose existing one click on Find or to create
New Position click on New
 Unit Plan

Position window will be appeared in that when we click on name Position

Flexfield sub-window will be displayed in that enter Position Number and Name
 Unit Plan

After entering that give the remaining information like Type,Organization,Job,etc.,

and then save it.
 Unit Plan

To create people use this

HRMS Responsibility -> HRMS Manager -> People -> Enter and Maintain
 Unit Plan

Find People window will display to choose existing one click on Find or to create
New People click on New
 Unit Plan

Enter the details of Person to whom we are creating those are Last,First,Middle
Names,Gender,Action as Create Employe,Date of Birth,etc., then save and click on
Assignments
 Unit Plan

Now assign the job and position that we created before to this created person and
then save it.
 Unit Plan

To create Requisitions,purchase orders,etc., we need Purchase Responsibility for

that

System Adminisrator ->Security ->Responsibility -> Define

 Unit Plan

In this Responsibility Form define Purchasing responsibility with mandatory

information like Responsibility Name,Application,Responsibility Key,Data Group
Name and Application Menu,etc., and then assign this created Responsibility to our
own user.
 Unit Plan

Now give profile values to this purchasing responsibility for that

System Administator -> Profile -> System

 Unit Plan

Enter all the profile values defined below to that Purchasing Responsibility.
 Unit Plan

Now give the Org Access to Purchasing Responsibility for that

Inventory -> Organization Access

Assign it for Item Master and Inventory Organization

 Unit Plan

Now give the Financial Options for that

Purchasing Responsibility -> Set Up -> Organization -> Financial Options

Go to Accounting and give all the accounting information given below

 Unit Plan

Now click on Supplier-Purchasing give Ship-To,Bill-To Location and Inventory

Location
 Unit Plan

Now click on Human Resource and give Business Group and give Expense
Reimbursment Address
 Unit Plan
Now give the Purchasing Options for that

Purchasing Responsibility -> Set Up -> Organization -> Purchasing Options

 Unit Plan
Now search for our own operating unit and click on go
 Unit Plan

Now give all the required information like Expense Account,Enforce Full
Lot quantity,Match Approval Level etc.,
 Unit Plan

In Document Numbering give how the PO or Requisition etc., numbers

to be created we can give either Automatic or Manual.
 Unit Plan
Now give the Receiving Options for that

Purchasing Responsibility -> Set Up -> Organization -> Receiving Options

Go to Accounting and give all the accounting information given below

 Unit Plan
Now search for our own operating unit and click on GO give all the required
information that was defined like below and save it
 Unit Plan

After defining all the options run the replicate seed data for that

System Administator -> Request -> Run

 Unit Plan

Click on single request and then click on ok

 Unit Plan

Select Name as Replicate Seed Data and click on submit.

 Unit Plan

Session 2

Overview
Case Study

Setting Up Application

Setting Up of Document type,Payables Option and

Supplier
Hands on Assignment
 Unit Plan

For defining Document Type

Purchasing Responsibility -> Purchasing -> Document Type

 Unit Plan

After opening that Document Type window enter Document

Type,Document Sub Type,Document Name,Quatation class and click on
Apply
 Unit Plan

For payments we need Payables Responsibility for that

System Administator -> Responsibility -> Define

 Unit Plan

In this Responsibility Form enter all the required data like Responsibility
Name,Application,Responsibility Key Data Group Name and
Application,Menu etc.,
 Unit Plan

Add that created Payables Responsibility to our own user

 Unit Plan
Now give the Payables Options for that

Payables Responsibility -> options -> Payables Options

 Unit Plan
Find Payables Options sub window will display search our own operating
unit and click on Find
 Unit Plan
Payables option window will be displayed in that click on Accounting Option
and enable the options that have been done as below
 Unit Plan
Click on currency and give the GL Accounts information
 Unit Plan
Click on Invoice Option and enable the options that have been done as
below
 Unit Plan
Click on Expense Report and enable the options that have been done as
below and give Payment Terms and Payment Group
 Unit Plan
Click on Payment Option and enable the options that have been done as
below
 Unit Plan
To create Supplier we should go to

Payables Responsibility -> Supplier -> Enter

 Unit Plan
Suppliers window will be displayed and click on create supplier
 Unit Plan
Give Organization Name, Alias and country of origin and click on Apply.
 Unit Plan
Click on Address Book and click on create to create New address book
 Unit Plan
Give all the details of address that has been give in below and click on
apply.
 Unit Plan
Select the Purchasing and click on create to create the purchasing
 Unit Plan
Select the Receiving and enter enforce Ship-To-Location,Receipt
Routing,Match Approval Level and etc., as below
 Unit Plan

Session 3

Setting Up Application
Setting Up of Approval Groups and Assignments,Hierarchy
and Buyer
Hands on Assignment
 Unit Plan
For creating Approval Groups

Purchasing Responsibility -> Setup -> Approvals -> Approval Groups

Give Name for that Group and give Object,Type,Amount Limit,Low value
and High Value
 Unit Plan

Give Name for that Group and give Object,Type,Amount Limit,Low value
and High Value
 Unit Plan
Now come to User Form and assign the Person that has been created
previously
 Unit Plan
For creating Approval Assignments

Purchasing Responsibility -> Setup -> Approvals -> Approval Assignments

Give Job and assign Document Type and assign Approval Group that has
been created before
 Unit Plan
Again come to People window for assigning Supervisor click on
Assignments
 Unit Plan
Click on Supervisor and give your own supervisor
 Unit Plan
To create Buyers use the following

Purchasing Responsibility -> Setup -> Buyers

 Unit Plan
In this Buyers window we are going to add a new Buyer
 Unit Plan
Click on add buyer to add new buyer and data of buyer like name,etc.,
 Unit Plan

Session 4

Setting Up Application
Creation of Requisition and Purchase Order

Hands on Assignment
 Unit Plan
For creating Requisition we should use the following

Purchasing Responsibility ->Requisition ->Requisition

Enter the entire required data as below and click on Approval

 Unit Plan
Click on submit for Approval and click on ok
 Unit Plan
To create Purchase Order from Requisition use the following

Purchasing Responsibility ->Purchase Order ->Auto Create

Give Requisition number and click on Find

 Unit Plan
Select the items that needed in purchase order
 Unit Plan
After selecting all required items just click on Automatic
 Unit Plan
Autocreate purchase order window will be displayed in this based on
created Requisition purchase order is created and click on
 Unit Plan
To create Purchase Order from Requisition use the following

Purchasing Responsibility ->Purchase Order ->Auto Create

Give Requisition number and click on Find

 Unit Plan
Click on Distributions and and check all the data that has been given
 Unit Plan

Click on Receiving controls

 Unit Plan
If Match Approval Group and is 2-Way and give Receipt routing as Direct
Delivery and click on ok
 Unit Plan
If Match Approval Level is 4-Way
 Unit Plan
Give Receipt Routing as Inspection Required and if it is 3-Way Receipt
Routing should be standard
 Unit Plan

Session 5
Setting Up Application
Setting Up of Receipts and Invoices

Hands on Assignment
 Unit Plan
To create Receipts use the following

Purchasing Manager -> Receiving -> Receipts

Find expected Receipts form will be displayed enter the purchase order
number and click on Find
 Unit Plan
Receipt Header window will be displayed click on Header
 Unit Plan
Receipts window will be displayed and choose the items which we are
accepting
 Unit Plan
Some items may be Standard,Direct Delivery and Inspection Required
 Unit Plan
For Direct Delivery we should give sub inventory
 Unit Plan
To check the transactions of the items we should go to

Purchasing Manager -> Receiving -> Receiving Transaction Summary

 Unit Plan
When Inspecting we should go to Inspection Details Form to mention how
much quantity is accepting and how much is rejecting
 Unit Plan
To Return the Rejected items use the following

Purchasing Manager -> Receiving -> Returns

Receiving returns window will be displayed enable the item which we are
returning and how much quantity rejecting will be given
 Unit Plan
Now open the Accounting Periods for that

Payables Manager -> Accounting -> Control Payables Periods

 Unit Plan
For creating Invoices use the following

Payables Manager -> Invoices -> Entry -> Invoices

Invoice Workbench window will be displayed

 Unit Plan
Ener the type as Standard Po Number to which we are creating
Invoice,Trading Partner,Supplier Site,Invoice Date etc.,
 Unit Plan
Give Invoice Number,Invoice Date,Invoice Num and Invoice Amount.
 Unit Plan
Give Terms Date,Terms and Payment Method
 Unit Plan
After entering all the data click on Match
 Unit Plan
Find Purchase Order for Matching window will be displayed in that enter
purchase order number and click on Find
 Unit Plan
Match Purchase Order Form will be displayed in that Match Accepted and
Quantity Invoiced and then click on Match
 Unit Plan
Ater Matching click on Actions
 Unit Plan
To validate the Invoice click on Validate and then click on ok
 Unit Plan
After Validating again click on Actions and enable the Create Accounting
and click on ok
 Unit Plan
After Creating Accounting again click on Actions and enable the Pay in Full
and click on ok
 Unit Plan

Session 6
Setting Up Application
Setting Up of Banks and Payments
Hands on Assignment
 Unit Plan
To create Banks use the following

Payables Manager -> Setup -> Payment -> Bank Accounts

 Unit Plan
Bank Accounts window is displayed and click on create
 Unit Plan
Create Bank Account window will be displayed search for country
 Unit Plan
Bank Accounts window is displayed click on Banking Details
 Unit Plan
Enter all the mandatory data like country Bank Name,Bank Number,Branch
Name,Branch Number etc.,
 Unit Plan
Enter Bank Account and Assignment Details and save it
 Unit Plan
To define User Management Login into Sysadmin
 Unit Plan
User Management -> Roles&Inheritance
 Unit Plan
Enter the Type,Category,Name,Application etc., as below and click on Go
 Unit Plan
After clicking
click on Go sub window will be displayed enter category click on
Apply
 Unit Plan
Run Wizard of User Management Security Administration setup
 Unit Plan
After that click on Add Legal Entities
 Unit Plan
Enter the Legal Entity name and click on Go
 Unit Plan
Select our own Legal Entity
 Unit Plan
Enable all the data required as below
 Unit Plan
Again come back to Bank Account and click on Account Owner and Use
and give mandatory columns like Bank Account Owner,Account use,etc.,
 Unit Plan
After moving to next step give all required Account Information as below
 Unit Plan
In the same step give remaining information as below
 Unit Plan
In the same step give remaining information as below
Unit Plan
 Unit Plan
Go to Account Access
 Unit Plan
Give required information ie., Account Use,Organization,etc., click on
continue
 Unit Plan
In the Receiving options enter all required accounts and click on Apply
 Unit Plan
Give Account contact and click on Finish
Unit Plan
 Unit Plan
To create payment Documents go to payment docuents and click on create
 Unit Plan
Enter all the data as required like Document Name etc., as given below
 Unit Plan
To give Payments use the following

Payables Manager -> Entry -> Payments

Payments window is displayed in that enter Type,Trading Partner,Supplier

Site,etc., as below
 Unit Plan
And also give Bank Account, Payment Method,Payment
Document,Document Number etc., as below
Unit Plan
 Unit Plan
After that click on enter/adjust invoices
 Unit Plan
Just check all the appeared data
 Unit Plan
Then click on Actions Payment Action window will appear in that enable
Create Accounting and click on ok