P2P Process and Setups

 

								P2P Cycle
Procurement Business Process					>>	P2P Process	>> Procure to Pay Process Cycle		>>	It starts from requisition and ends with payment
	Flow Chart Of Procurement Business Process
											This is called as
>>	Primary Dept in P2P are										Oracle Fusion Cash Management (CM/CE)
	1	Oracle	Fusion Inventory				This is called as
	2	Oracle Fusion Purchasing					Oracle Fusion Accounts Payable (AP)
	3	Oracle	Fusion Accounts		This is called as								Thi is called as
		Payable			Oracle Fusion Purchasing		(PO)						Oracle Fusion General
	This is called as												Ledger (GL)
	Oracle Fusion Inventory (INV)
														For sourcing we have Oracle Fusion
														sourcing application
														Sourcing Department
														*	Request for Quotation
														*	Receive Quotation
														*	Quotation Analysis					These are part of
														*	Choose Best Quotation					procurement department
																				these are the sub areas within
																				the procurement department
	Purchase Requisition (PR)				*	Request for Quotation (RFQ)								For purchasing we have Oracle Fusion
	* PR should be approved by				*	purchasing Dept will contact the								Purchasing Application
	supervisors					suppliers								Purchasing Department
	*Inventory Dept will pass				*	Purchasing Dept will raise RFQ's								*	Purchase Order (PO)
	approved PR to Purchasing					with different suppliers								*	Approvals
	Dept.				*	so the supplier members will provide								*	Goods Receipt Note (GRN)
						quotations the purchasing dept will								*	Purchase Returns
	Assets Department					receive the quotations from several							Payables Department
*	Recording the assets					suppliers				This is called as		*	Based on the Goods Receipt Note the payables
*	Calculating Depreciation				*	The purchasing Dept. will analyse the				Oracle Fusion			department will create purchase Invoice in their
						Quotations the same can be called as				Fixed Assets (FA)			books
						Quotation Analysis.						*	we have to record the payment against the purchase
					*	After analising the purchasing dept							invoice in payables department.
						will choose the best supplier						*	If you bought an asset then payables dept has to pass
	Cash Department				*	After choosing the supplier the							the information to asset department. So the asset dept
*	Cash department will maintain					purchasing dept have to place the order							will record the information as Asset.
	all the bank accounts.					to supplier that is known as purchase order (PO)						*	If the information is related to service, expense, Item
*	Cash department will do bank statement				*	With approvals the purchasing dept will place							then the payables dept doesnot require to transfer the
	reconciliations.		(BRS)			the order to suppliers							information to asset dept.
					*	Then suppliers will send the products so whenever						*	Can prepare payments and invoices reports
						you receive the products we have to prepare
						Goods Receipt Note (GRN)
	Common Department				*	Purchase returns if required when the damage
*	We can prepare		Financial reports			of the goods happen. >> ( If required)
					*	Now the purchasing department will request the
						payments department to process the payment
Oracle Fusion Cash Management (CM/CE), Oracle Fusion General Ledger (GL), Oracle Fusion Fixed Assets (FA) these depts are used internally to report the information
Oracle Fusion Inventory (INV)					Oracle Fusion Purchasing				Oracle Fusion Accounts Payable				Oracle Fusion Fixed Assets
*	Purchase Requisition				*	Request for Quotation >> RFQ			*	Purchase Invoice			*	Assets
*	Approvals				*	Receive Quotation			*	Payment			*	Depreciation
					*	Quotation Analysis
					*	Choose Best Quotation			P2P Entries
					*	Purchase Order (PO)			Purchase Requisition Created
					*	Approvals			No entry
					*	Goods Receipt Note (GRN)			Purchase Order Created
					*	Purchase Returns			No entry
									Inventory Received					Make a payment
									Received Inventory		Debit			Liability	Debit
Oracle Fusion Cash Management						Oracle Fusion General Ledger			AP Accural		Credit			cash clearing	credit
*	Bank Accounts					*	Financial Reports		Inventory moved from received paid to stock					Reconciliation
*	Bank Statement Reconciliation								Inventory		Debit			cash	Debit
									Received Inventory		Credit			cash clearing	Credit
									Create Invoice
									AP Accural		Debit
									Liability		Credit
Business Flow
Requestor creates Purchase Requisition (PR) ---> Get it approved---> Buyer converts approved PR into standard purchase order (PO)---> Warehouse team receives and performs delivery (i.e. taking the
stock into inventory location)---> Ap team receives invoice received from vendor---> AP team makes the payment---> Cash management teams performs payment reconciliation
Scenerio: Lets say a customer has ordered 100 moblie phones so now we have to check whether there are 100 moblies are there or not with inventory department if there is no stock avaiable then the procurement
process will begin.		so the primary responsibility of inventory department is to maintain the stock. Since there is no stock avaiable to meet the client/customer demand the inventory department will raise
purchase requisition (PR)			and the purchase requisition has to be approved by supervisor and the inventory department gets approval the inventory department will pass the information to purchasing
department the inventory department will share the purchase requisition to purchasing department and based on this purchasing department will prepare Request for Quotation (RFQ)
Setups
Assign Offerings To Project					Path	Setup and maintainance >> Taskpane >> Implementation Projects >> Assign procurement, product management, Material Management and logistics offerings to our implementation project.
Assign Business Unit Business Functions - Inventory & Procurement					Task	Assign Business Unit Business Function	Here Enable Flags for Procurement, Requisitioning, receiving, Materials Management
Define Facilities (Work Day Calendar) For Procurement
Facility Shifts					Task	Manage Facility Shifts				Receipt Routing Methods
Facility Workday Pattern					Task	Manage Facility Workday Patterns				Direct Delivery		>>	If you receive the goods from supplier directly to inventory it is called as Direct Delivery
Facility Schedules					Task	Manage Facility Schedules				Standard Receipt		>>	It consists of two steps first material will come to staging area and the material will move into subinventory.
Create Item Master Inventory Organisation					Task	Manage Item Organizations				Inspection Required		>>	Here from supplier it will come to staging area and we will inspect the goods and later point of time it will move to subinventory.
Create Inventory Location					Task	Manage Locations
Create Child Inventory Organisation					Task	Manage Inventory Organizations
Configure Procurement Business Function					Task	Configure Procurement Business Function		With this you can create a PO
Configure Requisitioning Business Function					Task	Configure Requisitioning Business Function
Configure Common Options For Payables and Procurement					Task	Manage Common Options For Payables And Procurement
Receiving Parameters					Task	Manage Receiving Parameters
Procurement Agent					Task	Manage Procurement Agents
Self Default Buyer					Task	Manage Buyer Assignment Rules
Manage Transcation Account Definitions (Accural Account, Charge Account, Destination Charge, Destination Variance, Variance)								Here out of five three are mandatory accounts					Mandatory Accounts			Optional Accounts				PO - TAB Stands For Purchase Order Transcation Accounting Builder
Configure Account Rules					Task	Manage Account Rules	*Here Select Procurement related Account Rules						Accural Account			Destination Account				Charge Account - Expense
Transcation Account Definition (Create PO TAB)					Task	Manage Transcation Account Definitions	*Here Assign Account Rules						Charge Account			Destination Variance Account				Accural Account - Liability
Manage Subledger Accounting Options (Assign TAB to Ledger)					Task	Manage Subledger Accounting Options							Variance Account
Manage Requisition, Purchasing Document Approvals - Rule					Task	Manage Requisition Approvals	Select Header PostApproval Stage Node
Configure Purchase Approvals					Task	Manage Purchasing Document Approvals
SubInventory					Task	Manage Subinventories and Locators	Without Subinventory we cannot receive the material
Item Class					Task	Manage Item Classes	By Default Oracle is providing Root Item Class. Select it and create a new item class. After the same goto item management, After the same goto security
Create Item					Path	Navigator >> Product Management >> Product Information Management >> Taskpane >> Create Item
Create Item and Assign to Inventory Organisation					Path	Create Item >> Associations >> Assign Items to Inventory Organisation
Assign Roles to User					Path	Navigator >> Security Console >> Users >> Search for our user >> Clickon Add Role
Provide Data Access Set for User					Task	Manage Data Access Set Data Access for Users
Run LDAP Job					Path	Tools >> Scheduled Process
P2P Flow
Set Requisition Preferences					Path	Navigator >> Procurement >> Purchase Requisitions >> Clickon more tasks >> Update Requisition preferences
1. Create Purchase Requisition >> AutoCreate PO >> Create Invoice in AP
2. Create Manual PO >> Receipt >> Invoice
3. Create Payon Receipt/Evaluated Receipt Settlement (ERS)/Automatic Invoice
4. Purchase Returns
Roles								Invoice Matchings
	Inventory Roles							2 Way Matching	>>	Based on PO we will create Invoice
1	Inventory Manager							3 Way Matching	>>	Based on PO and Receipt we will create Invoice
2	Warehouse Manager			Assign Inventory Organisation				4 Way Matching	>>	Based on PO, Receipt, and Inspection we will create invoice
3	Warehouse Operator			to roles
								Matching	2 Way	PO	Invoice
	Procurement Roles								3 Way	PO	Receipt	Invoice
1	Procurement Manager								4 Way	PO	Receipt	Inspection	Invoice
2	Procurement Requestor				Assign Business Unit
3	Procurement Preparer				to roles
4	Advanced Procurement Requestor