P2P Made Easy

Procure to pay cycle

OVERVIEW

 Hey folks lets start with the P2P cycle made easy.

Just imagine at home, when you want something new like  Ps2 set or New Ipad air ,what you used to do?

Most probably You would put your proposal/requisition to your mom (cuz u knew she wouldn’t shout)!  

 

1 You expected mom to tell your dad that you wanted new toy in your collection !!

2 Next : your mom would tell your dad about your demand .

3 Your dad will either accept or decline your demand

4 If accepted , he  will tell you to search cheapest store online.

5 If everything goes well , you just order online ! And ting tong there goes your new gadget !

6 you check the invoice  amount, sign the receipt , provide sales guy with your dads cheque and BAM !!You ve got it…

7 Finally your dad adds the expense in his account book so that he can remind you of the bill he paid ;)

 

Similar goes in these modern days business too…

Now lets put same kind of understanding in business environment:

Since you are graduated now , you will be called employee and your senior the boss!

Now coming to the point,

1 You as a employee need a new laptop cuz previous owner ruined it playing online poker !!

2You place a requisition to your senior

In oracle apps scenario it goes like this:

The requisition you entered is stored in tables !!  wow now we are talking like professional !!

I > PO_REQUISTION_HEADERS_ALL

ii>PO_REQUISITIONS_LINES_ALL

III>PO_REQ_DISTRIBUTIONS_ALL

Your senior has always right to disapprove your requisition.

3 Now lets say , your requisition got approved.Now in this scenario :

We create purchase order ;

It is saying something like ‘ congratulation your request for new gadget has been approved, please wait and watch for its arrival!!

Hence ,Now purchase order effects following tables:

i>PO_HEADERS_ALL

ii>PO_LINES_ALL

iii>PO_DISTRIBUTIONS_ALL

Next step is to create receipt.

 

4 Receipt is a document , confirming item or amount has been received. A receipt is the buyer’s proof of payment.

 

Receipt is generally prepared by seller of the good ; but in case of Oracle Payables,

Buyer too prepares receipt in P2P cycle

Receipt Creation effects following tables

I>RCV_SHIPMENT_HEADERS

II>RCV_SHIPMENT_LINES

5  Next is creating invoice after good has been received.

The related tables are

i>AP_INVOICES_ALL
ii>AP_INVOICE_LINES_ALL
iii>AP_INVOICE_DISTRIBUTIONS_ALL

Each invoice distribution line has its own accounting date. When you account for an invoice, your Oracle Payables application creates accounting events, accounting entry headers and accounting entry lines for those distribution lines that have accounting dates included in the selected accounting date range for the Payables Accounting Process.

Accounting Entries Tables:

i>   AP_ACCOUNTING_EVENTS_ALL

ii>  AP_AE_HEADERS_ALL

III> AP_AE_LINES_ALL

 

 

5 Now its time to create payments in oracle P2P.

The Payment process involves following tables:

i>AP_INVOICE_PAYMENTS_ALL

ii>   AP_PAYMENT_SCHEDULES_ALL

iii>  AP_CHECKS_ALL

iv>  AP_CHECK_FORMATS

v>   AP_BANK_ACCOUNTS_ALL

vi>  AP_BANK_BRANCHES

vii> AP_TERMS

 

6 Finally transfer to GL is made accounting the whole payment process.

 

P2P TABLES AND DETAILS

SNO	PROCESS	TABLE NAME	DESCRIPTION
1	REQUISITION	PO_REQUISITION_HEADERS_ALL	PO_REQUISITION_HEADERS_ALL stores information about requisition headers. You need one row for each requisition header you create. Each row contains the requisition number, preparer, status, and description. REQUISITION_HEADER_ID is the unique system–generated requisition number. REQUISITION_HEADER_ID is invisible to the user. SEGMENT1 is the number you use to identify the requisition in forms and reports. PO_REQUISITION_HEADERS_ALL is one of three tables storing requisition information. PO_REQUISITION_HEADERS_ALL corresponds to the Header region of the Requisitions window. SEGMENT1 provides unique values for each row in the table in addition to REQUISITION_HEADER_ID.
1.1	REQUISITION	PO_REQUISITION_LINES_ALL	PO_REQUISITION_LINES stores information about requisition lines. You need one row for each requisition line you create. Each row contains the line number, item number, item category, item description, need–by date, deliver–to location, item quantities, units, prices, requestor, notes, and suggested supplier information for the requisition line. LINE_LOCATION_ID identifies the purchase order shipment line on which you placed the requisition. LINE_LOCATION_ID is null if you have not placed the requisition line on a purchase order. BLANKET_PO_HEADER_ID and BLANKET_PO_LINE_NUM store the suggested blanket purchase agreement or catalogue quotation line information for the requisition line. PO_REQUISITION_LINES is one of three tables storing requisition information. This table corresponds to the Lines region of the Requisitions window.
1.2	REQUISTION	PO_REQ_DISTRIBUTIONS_ALL	PO_REQ_DISTRIBUTIONS_ALL stores information about the accounting distributions associated with each requisition line. Each requisition line must have at least one accounting distribution. You need one row for each requisition distribution you create. Each row includes the Accounting Flex field ID and requisition line quantity. PO_REQ_DISTRIBUTIONS_ALL is one of three tables storing your requisition information. This table corresponds to the requisition Distributions window, accessible through the Requisitions window.
2	PURCHASE ORDER	PO_HEADERS_ALL	PO_HEADERS_ALL contains header information for your purchasing documents. You need one row for each document you create. There are six types of documents that use PO_HEADERS_ALL: • RFQs • Quotations • Standard purchase orders • Planned purchase orders • Blanket purchase orders • Contracts Each row contains buyer information, supplier information, brief notes, foreign currency information, terms and conditions information, and the status of the document. Oracle Purchasing uses this information to record information that is related to a complete document. PO_HEADER_ID is the unique system–generated primary key and is invisible to the user. SEGMENT1 is the system–assigned number you use to identify the document in forms and reports.
2.1	PURCHASE ORDER	PO_LINES_ALL	PO_LINES_ALL stores current information about each purchase order line. You need one row for each line you attach to a document. There are five document types that use lines: • RFQs • Quotations • Standard purchase orders • Blanket purchase orders • Planned purchase orders Each row includes the line number, the item number and category, unit, price, tax information, matching information, and quantity ordered for the line. Oracle Purchasing uses this information to record and update item and price information for purchase orders, quotations, and RFQs. The QUANTITY field stores the total quantity of all purchase order shipment lines (found in PO_LINE_LOCATIONS_ALL). PO_DISTRIBUTIONS_ALL (REQ_HEADER_REFERENCE_NUM in Distributions table is the Requisition number for this PO) PO_DISTRIBUTIONS_ALL contains accounting distribution information for a purchase order shipment line. You need one row for each distribution line you attach to a purchase order shipment. There are four types of documents using distributions in Oracle Purchasing: • Standard Purchase Orders • Planned Purchase Orders • Planned Purchase Order Releases • Blanket Purchase Order Releases Each row includes the destination type, requestor ID, quantity ordered and deliver–to location for the distribution. Oracle Purchasing uses this information to record accounting and requisition information for purchase orders and releases. PO_DISTRIBUTIONS_ALL is one of five tables storing purchase order and release information.
3	CREATE RECEIPT	RCV_SHIPMENT_HEADERS	RCV_SHIPMENT_HEADERS stores common information about the source of your receipts or expected receipts. You group your receipts by the source type and the source of the receipt. Oracle Purchasing does not allow you to group receipts from different sources under one receipt header. There are two receipt source types, Supplier and Internal Order, that you need to use when receiving against different source document types. You use a receipt source type of ’Supplier’ when receiving items that you ordered from an external supplier using a purchase order. When you receive items that are part of an inter–organization transfer, or when receiving items that you request from your inventory using an internal requisition, the receipt type would be ’Internal Order’. The ’Internal Order’ receipt source type populates the ORGANIZATION_ID column. Oracle Purchasing creates a receipt header when you are entering your receipts or when you perform inter–organization transfers using Oracle Inventory. When Oracle Inventory creates a receipt header for an in-transit shipment, the receipt number is not populated until you receive the shipment.
3.1	CREATE RECEIPT	RCV_SHIPMENT_LINES	RCV_SHIPMENT_LINES stores information about items that have been shipped and/or received from a specific receipt source. RCV_SHIPMENT_LINES also stores information about the default destination for in-transit shipments.
4.0	CREATE INVOICE	AP_INVOICES_ALL	AP_INVOICES_ALL contains records for invoices you enter. There is one row for each invoice you enter. An invoice can have one or more invoice distribution lines. An invoice can also have one or more scheduled payments.
4.1	CREATE INVOICE	AP_INVOICES_LINES_ALL	AP_INVOICE_LINES_ALL is a new table introduced in R12 to represent the data stored in invoice lines.
4.2	CREATE INOVICE	AP_INVOICE_DISTRIBUTIONS_ALL	AP_INVOICE_DISTRIBUTIONS_ALL holds the distribution line information that you enter for invoices. There is a row for each invoice distribution. A distribution line must be associated with an invoice. An invoice can have multiple distribution lines. Your Oracle Payables application automatically creates rows in this table when: 1) You choose a distribution set at the invoice level. 2) You import expense reports. 3) You match an invoice to a purchase order or receipt; it uses information from the matched purchase order or receipt. 4) You import invoices via the Open Interface Import process. 5) You select to automatically calculate tax. 6) You select to automatically do withholding. Each invoice distribution line has its own accounting date. When you account for an invoice, your Oracle Payables application creates accounting events, accounting entry headers and accounting entry lines for those distribution lines that have accounting dates included in the selected accounting date range for the Payables Accounting Process. Accounting Entries Tables: AP_ACCOUNTING_EVENTS_ALL AP_AE_HEADERS_ALL AP_AE_LINES_ALL
5	PAYMENTS	AP_INVOICE_PAYMENTS_ALL	AP_INVOICE_PAYMENTS_ALL contains records of invoice payments that you made to suppliers. There is one row for each payment you make for each invoice. There is one payment and one invoice for each payment in this table. Your Oracle Payables application updates this table when you confirm an automatic payment batch, enter a manual payment, or process a Quick payment. When you void a payment, your Oracle Payables application inserts an additional payment line that is the negative of the original payment line. For manual payments and Quick payments, this table corresponds to the Select Invoices window in the Payment workbench.
5.1	PAYMENTS	AP_PAYMENT_SCHEDULES_ALL	AP_PAYMENT_SCHEDULES_ALL contains information about scheduled payments for an invoice. You need one row for each time you intend to make a payment on an invoice. Your Oracle Payables application uses this information to determine when to make payments on an invoice and how much to pay in an automatic payment batch. Values for HOLD_FLAG may be ’Y’ to place a hold on the scheduled payment, or ’N’ not to do so. Values for PAYMENT_STATUS_FLAG may be ’Y’ for fully paid payment schedules, ’N’ for unpaid scheduled payments, or ’P’ for partially paid scheduled payments. For converted records, enter a value for AMOUNT_REMAINING. This table corresponds to the Scheduled Payments window.
5.2	PAYMENTS	AP_CHECKS_ALL	AP_CHECKS_ALL stores information about payments issued to suppliers or refunds received from suppliers. You need one row for each payment you issue to a supplier or refund received from a supplier. Your Oracle Payables application uses this information to record payments you make to suppliers or refunds you receive from suppliers.
5.3	PAYMENTS	AP_CHECK_FORMATS AP_BANK_ACCOUNTS_ALL AP_BANK_BRANCHES AP_TERMS	Check formats/banks and accounts used to pay invoice/and terms information
6	Transfer to GL

 

 

Kind of requisitions:

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.

 

 

Diagram showing p2p cycle

create requisition-----approval-------àcreate purchase order ----approval-------àcreate receipt upon goods received--àcreate invoiceàpay invoice-àgl import

 

Related Queries:

 

http://shashierp.blogspot.com/2014/12/p2p-query.html

Related Topics:

http://shashierp.blogspot.com/2014/12/accounts-payables-flow.html

 

Good Luck!!