Oracle Procure to Pay (P2P) Process

Oracle Procure to Pay (P2P) Process - End to End

The Procure to Pay (P2P) cycle covers all activities from identifying a need to paying the supplier. It involves Purchasing, Inventory, Payables and General Ledger modules.

Purchase Requisition Creation:
Module: Self-Service Procurement
· User creates a Purchase Requisition (PR)
· Selects Item or Service
· Defines Quantity, Need-by Date, and Charge Account
· Requisition goes through approval workflow (AME / hierarchy)
Output: Approved Requisition

Purchase Order Creation:
Module: Purchasing
· Purchase Order (PO) is created from the approved requisition
· Supplier, Price, Payment Terms, Ship-to & Bill-to locations defined
· PO is approved
· PO is dispatched to supplier (Email / Print / Fax)
Output: Approved Purchase Order

Goods or Services Receipt:
Module: Inventory / Purchasing (Receiving)
· Goods: Received through Receiving (GRN)
· Services: Service or milestone receipt
· Quantity and quality are verified

Supplier Invoice Entry:
Module: Payables
· Supplier invoice is entered manually or via interface
· Invoice validation is performed
· Matching Types:
  2 - Way Match (PO ↔ Invoice)
  3 - Way Match (PO ↔ Receipt ↔ Invoice)
  4 - Way Match (PO ↔ Receipt ↔ Invoice ↔ Inspection)

Invoice Approval & Accounting:
Module: Payables / Sub-ledger Accounting (SLA)
· Invoice goes through approval workflow
· Create Accounting process is run
· Accounting entries are transferred to GL
Status: Validated and Accounted Invoice

Payment Processing:
Module: Payables
· Payment batch or manual payment is created
· Payment method (Cheque / EFT / Wire Transfer)
· Payment approval and formatting

Posting to General Ledger:
Module: General Ledger
· Journal Import
· Journal Posting
· Period close impact