The document provides an overview of the procure to pay process in Oracle R12, including: 1. Creating a requisition, obtaining approval, and generating a purchase order. 2. Receiving items based on the purchase order and recording the receipt. 3. Automatically generating an invoice and validating it against the purchase order and receipt. 4. Making payment against the invoice and transferring transactions to the general ledger.

1. Procure 2 Pay Life Cycle in R12
It is a complete Procure to Pay document which will help you:
• To Overview Procure to Pay complete process.
• To describe the Procure to Pay flow from Requisition creation to make payment and
transfer to General Ledger.
• To provide reference material and definitions with snapshots.
BY: Muhammad Irfan

3. Create Requisition
Requisition:
Requisitions represent demand for goods or services.
The Purchase Requisition will be raised whenever an Item needs to be ordered from the Vendor.
Navigation:
Purchasing Responsibility  Requisitions
 Requisitions

4. In Requisitions form enter following
information
Select Operating Unit for the
destination organization.
Select Type as Purchase Requisition.
Enter the description, if any for this
requisition.
To select the item to be placed on
requisition, click the Catalog button by
keeping the cursor in the lines region.
Enter other required information as
shown

5. Requisition Approval
 After saving the requisition, click
Approve button. This will send the
requisition for approval as per Red
highlighted.
 After selecting the Approve button
in Requisitions window, approve
documents window opens.
 Select the Submit for Approval
checkbox to send the requisition
for approval as per Red
highlighted.

6. Create Purchase Order
Purchase Orders
Oracle Purchasing supports four types of purchase orders:
1. Standard PO: A Standard PO is created for one–time purchase of various items.
2. 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.
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.

7. Navigation:
Purchasing responsibility  Auto create
All purchase requisitions will appear in the
Auto create window of the buyer.
Auto Create Purchase Order
There are several methods that can be used to create purchase orders. You can manually create purchase orders or
search approved requisitions and add them to purchase orders. Here is Auto create purchase order.

8. In Find Requisition Lines window
Operating Unit, Buyer and Approved
status appears as yes.
Buyer can search the requisition lines
that are to be placed on Purchase
Order based on various criteria.
After searching the required
requisition i.e. after selecting the Find
button on Find Requisition Lines
window, Auto create Documents
window opens.

9. With the help of Auto create Documents window, you can create following documents:
Standard Purchase Order
Blanket Release
Sourcing RFQ.
Automatic: For automatic creation mode
use the checkboxes to select the requisition
lines that you want to use on the document
and then select automatic button. You can
also use Select All or Deselect All in Edit
Menu.
Manual: For manual creation mode select
manual button. It is available only when you
have chosen Default grouping for Standard
Purchase Order, blanket releases and RFQs.
 If you select manual creation mode,
supplier is not defaulted. In case of
automatic creation supplier is defaulted
from requisition.

10. In New document window, Most of
the fields defaults, you can enter
global agreement number if you want
to refer to any global agreement.
Once you click on Create button all
requisition information is transferred
to Purchase Order Form.
Enter all required details in:
• Lines Tab
• Price Reference
• Reference doc
• More tabs
Select Ship-To field carefully as this is
required to create inventory receipt /
purchasing receipt.

11. • 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.

12. Inventory Receipt
Receiving
Using Oracle Purchasing, you can process receipts from suppliers, receipts from other warehouses or inventory
organizations, in-transit shipments and receipts due to customer returns. You can search for expected receipts
based on a purchase order

13. Items Receiving
Navigation: Purchasing Responsibility >
Receiving > Receipts
Receiving Items and Check Quantity in
Inventory
By entering Purchase Order Number

14. Enable Quantity Receive
After saving click on Header

15. Submit Program for Pay on
Receipt Auto invoice
From Purchasing Module

16. Make a note of Invoice Number

17. Create AP Invoice
Navigation: Invoices> Entry> Invoices
Invoice number can be Query or find from find
Window.

18. Enter Invoice Number

19. Validate Invoice
Enable Validate
Now Status of Invoice is validated

20. The Purchase Order is Automatically Match to Invoice and PO Number,
Receipt Number and Quantity

21. Make Payment Against Invoices
Click on Actions then pay in Full

22. Payment completed

23. Create Accounting

24. Transfer To GL