P2P Oracle Procure to Pay Cycle Training Manual

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P2P Oracle Procure to Pay Cycle Training Manual

Step#1 - Creating the Item
Inventory Super User - Navigation: Items/Master Items
Enter item name and description
Table affected MTL_SYSTEM_ITEMS_B

Copy from template tools copy from purchased item

Ensure it is Purchased and Purchasable under Purchasing tab

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Assign the Purchasing category

From Tools- Categories

Organization assignment - Assigning it to M1 and M2.

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Please note here

In the Vision Demo instance, the Purchasing and Order Management Attributes are controlled at
Item Master level. By choosing the attributes at the item master level (V1) automatically sets these
attributes for all organizations which are assigned (ex. M1 and M2). By choosing the attributes at
the Item Master level - they are already set for all inventory organizations assigned.

P2P Oracle Procure to Pay Cycle Training Manual

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Step#2 Requisition/PO Approval setup

By default requisition will not get approved it will in incomplete status, you will need to define
approval in purchasing.
To get this tutorial going I have defined position based approval in purchasing adding those steps
1. Operating unit parameters
Purchasing Super User: Navigation Setup, Organizations, Financial parameters
Uncheck the Use approval hierarchies check box

P2P Oracle Procure to Pay Cycle Training Manual

2. Define job
Purchasing Super User: Navigation Setup, Personnel, Jobs
I have defined job as TEST IR APPROVER

3. Define Approval Group

Purchasing Super User: Navigation Setup, Approvals, Approval Group

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4. Approval assignments
Purchasing Super User: Navigation Setup, Approvals, Approval Assignments
Assignments are done to job which we have defined in earlier step (TIR.TEST IR APPROVER)
I am assigning the job (TIR.TEST IR APPROVER) to approval group (TEST APPROVAL GROUP)

5. Employee creation /job assignment

P2P Oracle Procure to Pay Cycle Training Manual

Click on assignment; Assign the job to the employee

Once these steps have done you should able to approve the requisition.

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Step#3 Requisition Creation

Purchasing: Navigation: Requisitions/Requisitions
Select the type as Purchase Requisition
Enter source as supplier and site
Table affected PO_REQUISITION_HEADERS_ALL (segment1 is requisition number),
PO_REQUISITION_LINES_ALL

P2P Oracle Procure to Pay Cycle Training Manual

Click on distributions and enter the charge account details

Save and submit for approval

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P2P Oracle Procure to Pay Cycle Training Manual

You can view the requisition by using requisition summary form,

From tools, you can look for view action history

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P2P Oracle Procure to Pay Cycle Training Manual

Step#4 Purchase order Creation
Purchasing Super User: AutoCreate
The PO will be created using auto create by finding the requisition number.
Table affected
PO_HEADERS_ALL,
PO_LINES_ALL,
PO_DISTRIBUTIONS_ALL,
PO_LINE_LOCATIONS_ALL

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Under auto create you can review the Action and document type, Once reviewed click on
Automatic

You will see the PO created

P2P Oracle Procure to Pay Cycle Training Manual

Click on Shipments to decide matching option

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P2P Oracle Procure to Pay Cycle Training Manual

Save and click on approve the PO

Once approved you can look the action history from inquire-view action history

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Step#5 Receipt Creation

Purchasing: Navigation: Receiving/Receipts
Find expected receipts by entering purchase order number (6055 in this case)

Check the box and enter the subinventory where you want to receive this PO and save the receipt.

P2P Oracle Procure to Pay Cycle Training Manual

Note down the receipt number

When you save the receipts, in the background the below requests will run

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P2P Oracle Procure to Pay Cycle Training Manual

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P2P Oracle Procure to Pay Cycle Training Manual

Step#6 Onhand check
You can see onhand using material workbench
Inventory: Navigation: On- hand, Availability
Table affected MTL_ONHAND_QUANTITIES_DETAIL
Pass the receipt number to look for an onhnad

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Step#7 Material transactions check

Inventory: Navigation: Transactions/Material Transactions
You will see the PO receipt is being made
Table affected
RCV_SHIPMENT_HEADERS (shipment_num is oracle delivery number,
SHIPMENT_LINE_STATUS_CODE shows fully received partially received)
RCV_SHIPMENT_LINES (RCV_SHIPMENT_HEADERS.shipment_header_id, to_organization_id,
quantity_shipped, quantity_received, rcv_transactions and mtl_material_transactions- shows the
receiving transactions

P2P Oracle Procure to Pay Cycle Training Manual

Step#8 Invoice Creation
Purchasing: Navigation: Submit new request
Submit program Pay on receipt autoinvoice
Pass the OU and receipt number and click submit

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Step#9 Checking the Invoice under payables
Payables: Navigation: Invoices/Entry/Invoices
Create Payables invoice by entering the PO number (6055) and click find
Table affected
AP_INVOICES_ALL
AP_INVOICE_DISTRIBUTIONS_ALL

You will see the invoice as never validated

Click on actions and say validate

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Alternatively, if can have the Invoice validation concurrent program scheduled to run at
particular interval which also can validate invoices.
Or you can pass the invoice number to it as well.

Once validated, the status will be now validated.

P2P Oracle Procure to Pay Cycle Training Manual

Step#10 PO status check as closed
PO closure
Purchasing: Purchase order
Navigate to Purchase order and verify the PO is closed.

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P2P Oracle Procure to Pay Cycle Training Manual

Step#11 Procure to Pay Accounting entries
Transactions

DR CR

Notes

Which account is
pulled

Control

Options

Requisition
1 Creation
No Accounting
2 PO Creation
No Accounting
3 Receipt
Receiving A/c

100

AP Accrual A/c
4 Delivery of Items
Raw Material Sub
Inventory A/c
Purchase Price
Variance A/c
Receiving A/c
Invoice matching
5 with PO
AP Accrual
Liability A/c
Invoice Price
Variance A/c

AP Liability A/c
On making
6 Payment

Liability A/c
Cash

At PO Price
100 At PO Price

80
20

At Standard
Cost
Diff between
PO - Stnd
100 At PO Price

100
10

At PO Price
Diff between
Invoice - PO

110 AT INV Price

At Invoice
110
Price
At Invoice
110 Price

Receiving Option
Setup
Inventory Org
Setup
Sub-inventory
Material A/c
Setup
Inventory Org
Setup
Receiving Option
Setup

ORG
ORG

SUBINV
ORG
ORG

Receiving Option
Setup
ORG
Inventory Org
Setup
ORG
Financial
Options/Supplier
Site

Financial
Options/Supplier
Site
Bank A/c Setup

Org Level A/c

will
get defaulted