Procure to Pay (P2P) Process Flow in Oracle R12

  • A Basic Procure to Pay Cycle in Oracle R12 Includes and Flows in the Following Sequence.
  • Create Requisition
  • Create Purchase Order
  • Create Inventory Receipt
  • Enter AP Invoice
  • Make Payment
  • Transfer to GL.
Create Requisition.

Navigation : Purchasing --->Requisitions--->Requisitions


Approve the Requisition

Click Approve 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.

Requisition Summary Shows that Requisition is Approved

 

Now we can Auto Create Requisition to Purchase Order. 

Navigation:Purchasing --->Autocreate







Enter requisition number which is saved and hit TAB to ensure you requisition is valid. 

Make sure to Clear the Form (Press F6 While the Form is Open) Before Entering requisition Number.This is done to clear the Defaulted Ship-To and Buyer which might add un-necessary condition to your search query. 

Click Find to See the Available Result and Select the Check Box and Choose the output document type.

In this P2P Cycle we will create a Standard Purchase Order.

 

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.

A New Document form With organization, Agreement, RFQ,Supplier and Currency  Details Will Open. if the Supplier and Supplier Site are Not Given in this Form we should enter the details in purchase order form before submitting for approval.





Once you click on Create button all requisition information is transferred to Purchase Order Form.

Check the Ship to and Bill to Values and Add Any Notes to Buyer or Supplier if Required.

   
Click on Approve Button For Sending the Document for Approval of Higher Authority in Case of Approval Hierarchy is Maintained. 

Incase of Job Based Approval, the Document may get Approved if the Document total is Within the Approval limit of buyer or will get forwarded to appropriate manager.

As the PO is Approved and sent to Supplier intimating the Requirement, we can expect the Supplier to Send the material and that should be received at the warehouse.

We can create Receipt in purchasing module or inventory module.
Navigation: Purchasing ---> Receiving ---> Receipts


 
Select the Organization which has been selected in Ship to of Purchase Order

 

Find the Purchase Order for Receipts by entering the PO Number.

 

Close the Receipt Header and Check the Details Defaulted in Line of the Expected Receipts. 

Enter the Actual Quantity Being Received and Destination Sub inventory Details.

Save the receipt.
 

Supplier would have sent Delivery Challan, Invoice along with the Materials. Now we need to create a Payable invoice and Pay the Supplier.

Navigation: Payables ---> Invoices ---> Entry ---> Invoices 

Enter the Information as per the Supplier Invoice.




Once the header information is entered we have to match the invoice with purchase order by clicking Match button.
Enter Purchase Order Number and Find.
Once the PO is found select the “Match” checkbox and click Match button at the bottom.

 
 Once the PO is found select the “Match” checkbox and click Match button at the bottom.
Once the PO is Matched, The Summary in General Tab of Invoice Will Show the amount without taxes.
  
Click Calculate Tax button to add any tax if it is applicable.
Reason for the total amount in Red Font is total on header should be equal to total of line amounts.
Click Actions Button and Select Validate option.
 
  Status of Invoice Should be Changed as Validated.
 
Again click on Actions button and select “Create Accounting” option. choose Final Post to send accounting information directly to GL and post. 
  
 Once accounting is successful a Note Will appear with Message "Accounting has been successfully created for this transaction".

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

   
Payment Form Will Open
 
Enter the Payment Details and save the Form.

After Posting the Accounting Entries into GL from Actions Button, we can view Payments in View Payments Tab of Invoice.

Further Reading : ERS Setup and Transaction Flow