p2p (2).pptx

Procure To Pay
Vignesh kumar G
6th OCT 2021

RFQ and Quotation(Optional)
Purchase Requisition
1
2
3 Purchase Order
4
Make Payment
Create Receipt
5 Enter AP Invoice
6
Agenda
7 Q&A

P2P Process in Oracle R12
Requisition
Request for
Quatation
Creation Of
Purchase Order
PO Receipt
AP Invoice
Payment to Supplier
Accounting
Quotation
Auto Create Manual

Purchase Requisition Creation
Requirement
 Oracle Purchasing Responsibility
 Requisition Preference setup(Sequence number
 Item in IMO
Key Activities
 Purchase Requisition create based on internel requirement
 Purchase Requisition Approve by specified user
 Purchase Requisition converted into RFQ or PO.
Possible Options Implementation Consideration
Approved based PR needs to generate neeeds to config approval
group,approval assignment,document type should be define in
purchasing responsibility
 Approval based flow
 Without approval flow
Chainsys had experience on developed
integration for (DBS, OCBC, ANZ, BDO etc)

Create Purchase 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.
 Navigation: Purchasing Responsibility > Requisitions > Requisitions

 Choose the requisition type and enter the Item, quantity, Price details in the Lines tab

In Source Details tab, specify the Buyer name.

Click the Distributions button. Enter the Charge Account.

Save the work. The status of the requisition will now be “Incomplete”. And now the Approve button
is highlighted. The requisition needs to be approved first before proceeding further by the concerned
authority. Submit this requisition for Approval by clicking on the Approve button. The status will
now be updated to “In Process” .The workflow then will send an Approval notification to the
concerned person (derived based on hierarchy used—Position or Supervisor hierarchy) using which
he can Approve or Reject the requisition.

At any time the status of requisition can be checked using the Requisition summary window.
Navigation: Requisitions > Requisition Summary
Enter requisition number and click on the find button.
We can also check the Action History of requisition (it will show details about who has submitted, approved and
cancelled the requisitions) as below:
Navigation: Tools menu > Action History.

Purchase Order Creation
Requirement
 Raise RFQ to Multiple suppliers
 Select Quote based on negotiation
 Approve the Quote
Key Activities
 RFI to RFQ
 RFQ to PO
 PR PO
Approved based PO needs to generate neeeds to config approval
group,approval assignment,document type should be define in
purchasing responsibility
 Approval based flow
 Without approval flow

Create Purchase Order:
There are 4 types of Purchase Orders:
 Standard PO: A Standard PO is created for one–time purchase of various items
 Planned PO: A Planned PO is a long–term 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.
 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.
 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
 Navigation for creating a standard PO: Purchase Orders > Purchase Orders

Choose type as Standard Purchase Order. Enter the Supplier, Buyer. In the Lines tab, specify the line
number, line type, Item, quantity, price etc.
Click Terms to enter terms, conditions, and control information for purchase orders.
Click Currency button to enter and change currency information for purchase orders, RFQs, and
quotations.

Click Shipments button to enter multiple shipments for standard and planned purchase order lines
Purchase order shipment specifies the quantity, ship–to organization and location, date you want your
supplier to deliver the items on a purchase order line, and country of origin for the items. When you save,
Purchasing creates distributions depending on the default information available.
To enter more shipment information, select the More tab.

Enter the Receipt Close Tolerance percent, Invoice Close Tolerance percent to set the receiving
and invoice close point.
Select one of the following options for Match Approval Level:
Two–Way: Purchase order and invoice quantities must match within tolerance before the
corresponding invoice can be paid.
Three–Way: Purchase order, receipt, and invoice quantities must match within tolerance
before the corresponding invoice can be paid.
Four–Way: Purchase order, receipt, accepted, and invoice quantities must match within
tolerance before the corresponding invoice can be paid.
Select an Invoice Match Option:
Purchase Order: Payables must match the invoice to the purchase order.

Receipt: Payables must match the invoice to the receipt.
Save the work.
Click Distributions button to enter distributions for the shipments.
Select more tab to enter more details and the requisition number (optional).
Save the work.

Click the Receiving Controls button to enter receiving control information for purchase orders.
– Enter the maximum acceptable number of Days Early and Days Late for receipts.
– Enter the Action for receipt date control.
– Enter the maximum acceptable over–receipt Tolerance percent (receipts that exceed the quantity
received tolerance).
– Enter the Action for Overreceipt Quantity.
– Select Allow Substitute Receipts to indicate that receivers can receive substitute items in place of
ordered items.
– Enter the default Receipt Routing that you assign goods: Direct Delivery, Inspection Required, or
Standard Receipt.
– Enter the Enforce Ship To location option to determine whether the receiving location must be the same
as the ship–to location.
Save the work.

Click on the Approve button to initiate the Approval process.

Receipt Creation
Requirement
 Approved Purchase order
 Purchasing Responsibility
Key Activities
 GRN
 Receiving Transaction based on Matching option
 Create ERS Invoice
Receiving transaction method should be define in PO or supplier
site.
Manual way of approve disable ERS option in supplier site.
 Automatic ERS invoice against
receipt
 Manual invoice against receipt

Create a receipt to receive the items in the Purchase Order.
Navigation: Receiving : Receipts
Enter the PO Number and select find button.

Go to Lines, check the lines you want to receive in the PO.

Click on Header button and Save which creates the receipt.

Create Invoice in Payables
Requirement
 Payable Responsibility
 Receipt Number
Key Activities
 Manually enter date in invoice form.
 Match the Receipt.
 Validate the invoice.
Create payment terms and Payment Method.
Define both in supplier site.
 Manual invoice against match
receipt

Once the goods are received, it’s time to pay the vendor for the goods purchased and hence the invoices
are created.
Navigation: Payables> Invoices>Entry>Invoices
Enter type — Standard, supplier information and amount.

Click the Match button to match to either Purchase Order or Receipt (depending on the Invoice Match
option specified on the PO) and avoid manually entering the invoice.
Enter the PO Number you want match to and click Find.

Select the lines required and click on Match button.

This creates the invoice and you can see the status of the invoice as “Never Validated”. it has to be
Validated and Accounted before you can pay it.
Validating the Invoice:
Click on Actions Button and Select “Validate”. Click on OK button.

Now you can see the status of the invoice as “Validated”,
if there are no issues during validation.

Create Accounting Entries:
Click on Actions Button and Select “Create Accouting”. Click on OK button.
Now we can see the Accounted status as “Yes”.

You can see the Accounting Entries here:
Tools > View Accounting

Making a Payment:
Requirement
 Payable Responsibility
 payble invoice should be created
Key Activities
 Select pay in full option in invoice workbench action button.
 Execute quick payment in payment form
 Create Accounting
Create bank ,bank branch and accout
Define Payment document and payment profile
 Manual payment against match
invoice
 Quick payment directly go from
invoice workbench

Invoice window and query the invoice you want to pay. You would see Amount paid as 0.00 before you
make a payment.
Click Actions button. Select “Pay in full” and click “OK”.

Select the Bank Account and Document. Save the Work.Now that the payment is made, when you query
for the invoice in Invoice window, you will the Amount Paid as $50,000.00.

Create Accounting entries for payment.
Click Actions and select “Create Accounting”
View Accounting Entries:
In the Payments window, query for the payment.
Tools menu>View Accounting

Chain-Sys Corporation
283, State Street ,Suite 201,
Westerville, OH 43081,
USA.
Chain-Sys Europa B.V.
Van Heuven Goedhartlaan 13D
1181 LE Amstelveen
The Netherlands
Chain-Sys Middle East
#6WA-232, PO Box 371425
DAFZA, Dubai,
UAE
Chain-Sys Asia Pacific Pte. Ltd.
Harbourfront Ave,
#13-03 Keppel Bay Tower,
Singapore - 098632
Development Headquarters
Chain-Sys (India) Pvt. Ltd.
#85, Ponniamman Nagar,
Ayanambakam, Chennai - 600095
India.
Global Headquarters
Chain-Sys Corporation
325, S. Clinton Street, Grand Ledge,
West Lansing, Michigan – 48837
USA.
www.chainsys.com
Global Presence – Serving Locally
Thank You.

p2p (2).pptx

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