The Oracle apps’ Purchase order management cycle (P2P) in Oracle Applications involves several steps. Here is an overview of the typical process:
- Requisition: The process begins with the creation of a requisition, which is a request for goods or services. The requisition specifies the items needed, quantities, and any other relevant information.
- Requisition Approval: The requisition goes through an approval workflow, where it is reviewed by authorized individuals. Approvers can check the requisition details, validate budget availability, and approve or reject the request.
- Purchase Order Creation: Once the requisition is approved, a purchase order is created. The purchase order includes information such as vendor details, item quantities, prices, delivery dates, and payment terms.
- Purchase Order Approval: Similar to requisition approval, the purchase order may also go through an approval process. Approvers review the order details, validate budget availability, and approve or reject the purchase order.
- Order Fulfillment: Once the purchase order is approved, it is sent to the vendor. The vendor then processes the order, prepares the items, and schedules delivery based on the agreed-upon terms.
- Goods Receipt: When the items are delivered, the receiving department checks the received goods against the purchase order. They verify the quantity and quality of the items and update the system with the received quantities.
- Invoice Matching: After the receipt of the goods is recorded, the accounting department compares the received goods with the vendor’s invoice. They ensure that the invoice matches the purchase order and goods receipt in terms of quantities, prices, and other relevant details.
- Invoice Approval and Payment: The invoice is reviewed and approved for payment. Once approved, the payment is processed, either through a manual payment or an automatic payment process.
- Invoice Reconciliation: In some cases, there may be discrepancies between the invoice and the purchase order or goods receipt. These discrepancies need to be resolved through a reconciliation process to ensure accurate accounting and payment.
10. Period Close: At the end of an accounting period, the purchase order management cycle is reconciled, and any outstanding transactions are cleared. Financial reports are generated, and the period is closed.
In Oracle Apps, the Purchase Order Management module handles the procurement process, from creating purchase orders to managing invoices and payments. The main tables involved in the Purchase to Payable flow are as follows:
PO_HEADERS_ALL: This table stores the header information of purchase orders, such as the order number, supplier details, and various dates related to the order.
PO_LINES_ALL: It stores the line-level information of purchase orders, including the item details, quantities, prices, and accounting information.
PO_LINE_LOCATIONS_ALL: This table contains the shipment details for each line of a purchase order, such as the ship-to location, requested delivery date, and delivery instructions.
PO_DISTRIBUTIONS_ALL: It stores the distribution information for each line of a purchase order, such as the destination type (expense, inventory, etc.), accounting details, and amounts allocated to each distribution.
PO_LINE_LOC_DIST_ALL: This table links the line, location, and distribution information for a purchase order. It maintains the relationship between the purchase order lines and their corresponding distributions.
AP_INVOICES_ALL: This table stores the invoice information, including the supplier details, invoice amount, payment terms, and other relevant data.
AP_INVOICE_LINES_ALL: It contains the line-level details of the invoices, such as the item information, quantities, prices, and accounting distributions.
AP_INVOICE_DISTRIBUTIONS_ALL: This table stores the distribution information for each invoice line, such as the expense or liability accounts, distribution amounts, and other accounting details.