P2P - Procure to Pay Life Cycle Process
Stage 1: Choosing an Item
Let us choose an item to be procured in our example.
Go to Purchasing Responsibility and follow the below navigation to check for the suitable item.
The item picked for our example should be purchasable item as above. Click on tools and choose “Categories” to view the below screen.
Stage 2: Creation of Requisition
Follow the below Navigation to reach Requisition Form.
Create a new Requisition for the item viewed in Stage 1.
Click on Distributions to View the charge Account.
Save and Submit for Approval
Now note down the Requisition number and open the “Requisition Summary Form” to view the status of it. For our Example, Requisition number is: 14855
Stage 3 : Checking the Status of Requisition
Query for the Requisition Number and click Find.
Here for our example purpose, I kept the submitted and approved person has same and hence it shows the status as approved.
To see the approval status, please follow the below navigation.
Stage 4 : Creation of Purchase Order
For creating a Purchase order, let us use the “Autocreate Documents” Form. Follow the below Navigation
Query for the Requisition
Click on Automatic as shown in the above figure to create a Purchase Order
Click on “Create” button to create a Purchase order
View the shipment screen to change the “Match Approval Level” to “2-Way”.
Click the “Receiving Controls” to make sure that the “Routing” is made as “Direct Routing”
Click Save and submit for Approval.
Note down the PO Number.
Stage 5: Creation of Receipts
Query with the Purchase order created in the above stage.
Check the check box near to the lines that are received and click save.
Click the “Header Button” to view the Receipt Number.
Stage 6: Checking the On Hand
Go to any Inventory Responsibility and follow the below Navigation
Query for our Receipt and make sure the Organization is the same as we received.
Below screen will show that our inventory has been increased by 5 quantities.
Stage 7: Check the Material Transactions
Follow the below Navigation to reach “Material Transactions” Form
Query for the item and date as below
Below screen shows the source and transaction Type
Below screen shows you the Serial Numbers of the items received.
Stage 8: Creation of Invoice
Navigate to any Purchasing Responsibility and view Requests
Submit the below requests by providing the Receipt number as Parameter to create an invoice.
Check the status of the program.
Stage 9: Checking the Invoice
Change to any Payables Responsibility and open the invoices Form.
Query for the Purchase order as below,
Click “Actions” Button then tick the “Validate Check Box” and press “Ok” to validate the invoice
Below screenshot will give you the status of the invoice
Stage 10: Creation of Accounting and Payment
Once invoice got approved, we can “Create Accounting” and “Create Payments” via “Action” Button in the “Invoice Form” as we validated the invoice.
Thus the brief description of P2P cycle came to end.
P 2 P Cycle ( PO-INV-AP )
Procure to Pay cycle-
1) Requisition creation in PO
2) Purchase order creation (Manual or Automatic)
3) Receipt creation
4) Invoicing in AP
5) Payment in AP
GO TO PURCHASING VISION OPERATION RESPONSIBULITY
REQUISITION
|
RFQ
|
QUOTATION
|
PURCHASE ORDER
|
RECEIPT THEN GO TO ACCOUNT PAYABLES
AP
|
INVOICES
|
PAYMENTS
|
|----PAYMENTS REGISTER IN GL
==================================
First of All We
(1)Create a Suppliers
(2)Create a Requisition
(3)Craete RFQ Throgh AutoCreate
(4)Quatation Analysis
(5)Approved Supplier Which one is the best
(5)PO Create
(6)Receipt
(7)AP Invoice
(8)Payments
(9)Transfer To GL by Payables Transfer To GL Concurrent Program
(10)Posted In GL
REQ--->RFQ--QT---ANALYSYS---PO--REC--INVOICE--PAYMENT--TRANSFER TO GL---POST IN GL
purchase requisition
|
request for quotation
|
quote analysis
|
purchase order
|
receipt to purchase order
|
invoice to purchase order
|
payment to purchase order
|
transfer to GL and then post
---------------------------------------------
Procure To Pay Cycle(p2p)
|requisition
po | |
| RFQ's
| |
| quotation
| |
| PO (purchasing order)
--- |
| receipt
| |
AP-| invoice
| |
| payments
---
==============================
1. Define Item( in INV module)
2. Define Employee(in HRMS module)
3. Define Buyer(in PO module)
4. Attach buyer to your fnd user
5. Define Requisition
6. Define RFQ(Request for Quotation)
7. Define Quotation
8. Define PO
9. Define Receipt
10.Define Invoice(Primarly create term,bank account and
supplier)
11.Define Payments
12. Run the Paybles transfer to general leadger
A single Query covering P2P life Cycle
In Finance, transaction management processing is one of labor intensive task in ERP, as it requires extensive data entry , chance are very very high for duplication/re-entry. As we know Procure to Pay life cycle start itself from contract management till making payment.
As we know the efficient Procure to pay process have these sub processes;
Contract Management
Purchase Requisitions
Purchase Orders
Accounts Payable - Managing invoice
Supplier Payment
In real business world, many time when system is running external/internal auditor are more interested in scrutiny of:
Goods received / invoices received
Inaccurate or duplicate vendor & material master records
Discrepancies in payment terms
Delays / long processing times
Detect duplicate vendor
Unusually large or small payments
Unauthorized changes made to invoices
Detect Duplicate invoice
Detect Duplicate payment
Approval status
Therefore, it is Inhouse ISD/Finance IT or implementing company responsibility is to provide such kind of adhoc reporting for auditor so that they can satisfy the audit requirement.
A 'P2P' query that made Auditors happy
It was brought by ISD team , as part year end audit for a ERP system which went live 3 month back. It was a one of requirement to display data for a particular PO which covers data from there all 5 five phases, means a particular PO line consist of:
Requisition Detail
Purchase Order Details
Receiving Details
Invoicing Detail
Payment Details
Therefore thought to share this query, hope this would be great help who have such kind of adhoc requirement from daily life.
Here is query:
SELECT a.org_id "ORG ID",
e.vendor_name "VENDOR NAME",
Upper(e.vendor_type_lookup_code) "VENDOR TYPE",
f.vendor_site_code "VENDOR SITE",
f.address_line1 "ADDRESS",
f.city "CITY",
f.country "COUNTRY",
To_char(Trunc(d.creation_date)) "PO DATE",
d.segment1 "PO NUMBER",
d.type_lookup_code "PO TYPE",
c.quantity_ordered "QTY ORDERED",
c.quantity_cancelled "QTY CANCALLED",
g.item_description "ITEM DESCRIPTION",
g.unit_price "UNIT PRICE",
(Nvl(c.quantity_ordered,0)-Nvl(c.quantity_cancelled,0))*Nvl(g.unit_price,0) "PO Line Amount",
(
SELECT Decode(ph.approved_flag, 'Y', 'Approved')
FROM po.po_headers_all PH
WHERE ph.po_header_id = d.po_header_id) "PO STATUS",
a.invoice_type_lookup_code "INVOICE TYPE",
a.invoice_amount "INVOICE AMOUNT",
To_char(Trunc(a.invoice_date)) "INVOICE DATE",
a.invoice_num "INVOICE NUMBER",
(
SELECT Decode ( x.match_status_flag, 'A', 'Approved')
FROM ap.ap_invoice_distributions_all X
WHERE x.invoice_distribution_id = b.invoice_distribution_id)"Invoice Approved?",
a.amount_paid,
h.amount,
i.check_number "CHEQUE NUMBER",
To_char(Trunc(i.check_date)) "PAYMENT DATE"
FROM ap.ap_invoices_all A,
ap.ap_invoice_distributions_all B,
po.po_distributions_all C,
po.po_headers_all D,
po.po_vendors E,
po.po_vendor_sites_all F,
po.po_lines_all G,
ap.ap_invoice_payments_all H,
ap.ap_checks_all I
WHERE a.invoice_id = b.invoice_id
AND b.po_distribution_id = c. po_distribution_id (+)
AND c.po_header_id = d.po_header_id (+)
AND e.vendor_id (+) = d.vendor_id
AND f.vendor_site_id (+) = d.vendor_site_id
AND .po_header_id = g.po_header_id
AND c.po_line_id = g.po_line_id
AND a.invoice_id = h.invoice_id
AND h.check_id = i.check_id
AND f.vendor_site_id = i.vendor_site_id
AND c.po_header_id IS NOT NULL
AND a.payment_status_flag = 'Y'
AND d.type_lookup_code != 'BLANKET';
