Procure-To-Pay Cycle Explanation

 Procure-To-Pay Cycle Explanation

Step 1: First Create a requisition of the required item and required quantity. (POR_REQUISITION_HEADERS_ALL, POR_REQUISITION_LINES_ALL, POR_REQ_DISTRIBUTIONS_ALL)

Step 2: Then we create get the requisition approved from approvers 

Step 3: After receiving approval from approvers, we create ask for quotations from the vendors

Step 4: Then we receive quotations from several vendors (All these Vendor details who provide the quotations will be stored in HZ_PARTIES because we need to maintain the details all vendors who send the quotations who are not registered into oracle in HZ_PARTIES table and after registration of vendor then the AP_SUPPLIER,AP_SUPPLIER_SITES_ALL_AP_SUPPLIER_SITE_LOCATIONS)

Step 5: Then we finalize any one quotation of a specific vendors

Step 6: Then the we first check if the vendor is registered in the oracle or not. If not then we first register the vendor, Vendor sites, vendor site locations into oracle for further transactions. (AP_SUPPLIER, AP_SUPPLIER_SITES_ALL, AP_SUPPLIER_SITE_LOACTOONS)

Step 7: Then we create a purchase order against the quotation finalized and send it to vendor. (PO_HEADERS_ALL, PO_LINES_ALL, PO_LINE_LOCATIONS_ALL, PO_DISTRIBUTIONS_ALL)

Step 8: Then the vendor sends the goods to us with the invoice.

1. First, we receive all the goods (RCV_SHIPMENT_HEADERS, RCV_SHIPMENT_LINES)

2. Then we inspect the goods.

3. Then we accept the inspected goods and mark the TRANSACTION_TYPE as RECEIVE, DELIVER (RCV_TRANSACTIONS)

(We maintain the record of QUANTITY_SHIPPED (sent from vendor), QUANTITY_RECEIVED, QUANTITY_DELIVERED, QUANTITY_RETURNED, QUANTITY_ACCEPTED, QUANTITY_REJECTED in RCV_SHIPMENT_LINES)

Step 9: Based on the invoice received from the vendor we create invoice in oracle (AP_INVOICES_ALL, AP_INVOICE_LINES_ALL (LINE TYPE WILL BE ITEM, TAX and PREPAY (If any prepayment id done to the vendor) and AP_INVOICE_DISTRIBUTIONS_ALL))

Step 10: After creation of invoice in oracle, we make payment to the Vendor

Payment can be made to the vendor via:

1. CASH

2. CHEQUE

3. EFT (Electronic Fund Transfer)

If prepayment is done to the vendor, then the prepayment amount is done less from the total invoice amount & remaining payment is done by any of the above 3 methods

(AP_INVOICE_PAYMENTS_ALL - This table will have all the installments paid by you

IBY_PAYMENTS_ALL - This table will have all the payment details

AP_PAYMENT_SCHEDULES_ALL - This table will have the amount remaining to pay to vendor

AP_CHECKS_ALL - This table will have the Check details of payment/Bank Details/Check Number)

Step 11: After payment the subledger entry is done (This is a center point all the AP, AR & other transactions (SUB-Ledger is a mediator between modules and GL))

XAL_TRANSACTION_ENTITIES - This table will have SOURCE_ID_INT_1 (can be invoice id, customer trx id etc.) & ENTITY_CODE (Can be PAYABLES/TRANSACTION/RECEIVABLES etc.) column 

XLA_AE_HEADERS

XLA_AE_LINES (GL_SL_LINK_ID)

XLA_EVENTS

XLA_DISTRIBUTION_LINKS

Step 11: After Subledger Entry, GL Entry is done.

GL_IMPORT_REFERENCES (GL_SL_LINK_ID)

GL_JE_HEADERS

GL_JE_LINES

GL_JE_BATCHES