R12 P2p Cycle

R12 P2p Flow detail

Step 1: Create the Requisition in Oracle Apps

·         When the company/person wants to purchase any item a Requisition is created

Navigation: Purchasing Vision Operations (USA) > Requisitions > Requisitions.

Underlying Tables:

1.       PO_REQUISITION_HEADERS_ALL

2.       PO_REQUISITION_LINES_ALL

3.       PO_REQ_DISTRIBUTIONS_ALL

Suppliers into TCA – Architecture in R12

1.       HZ_PARTIES                      à This is the master table for suppliers.

2.       AP_SUPPLIERS:                 à  replaces the PO_VENDORS table

3.       AP_SUPPLIER_SITES_ALL.

Step 2: RFQ (Request For Quotation)

·         Once Requisition is approved then the company/person will Request for Quotation (RFQ) specifying
    the required item, quantity.... etc and send them to the vendors who can supply the item

Step 3: Quotation

·         Once the vendor receives the RFQ then he will prepare the Quotation and send it back to the company/person

Step 4: Create the Purchase Order (PO) in Oracle Apps

·         After receiving different quotations from different vendors company/person will go through the quotations
and approves the quotation that is best suited/reliable for the company/person.

·         Based on the approved quotation Purchase Order is generated to the vendor. Now the vendor will supply the item.

There are 4 types of Purchase Orders:

1. Standard PO: A Standard PO is created for onetime purchase of various items.

2. Planned PO: A Planned PO is a long-term agreement committing to buy items or services from a single source.

3. Blanket agreement: A Blanket PO is created when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not know the detail of your delivery schedules.

4. Contract agreement: Contract purchase agreements are created with your suppliers to agree on specific terms and conditions without indicating the goods and services that you will be purchasing 

Navigation for creating a standard PO: Purchase Orders > Purchase Orders

1. TwoWay               à Purchase order and invoice quantities must match
2. ThreeWay            à Purchase order, receipt, and invoice quantities must match
3. FourWay              à Purchase order, receipt, accepted, and invoice quantities must match

·         Above cases must match within tolerance before the corresponding invoice can be paid.

Underlying Tables:

1.       PO_HEADERS_ALL

2.       PO_LINES_ALL

3.       PO_DISTRIBUTIONS_ALL (REQ_HEADER_REFERENCE_NUM in Distributions table is the Requisition number for this PO)

4.       PO_LINE_LOCATIONS_ALL

Step 5: Create the Receipts in Oracle Apps

    Once the Item is shipped the vendor will raise the Receipt to the company/person.

Navigation: Receiving—Receipts.

Receipt Tables are:

1.       RCV_SHIPMENT_HEADERS

2.       RCV_SHIPMENT_LINES (Lines Table has PO_HEADER_ID)

Step 6: Create the Invoice in Oracle Apps

    Based on the receipt Invoice is generated. For this invoice the company/person will make Payments.

Invoice Tables:

• AP_INVOICES_ALL
• AP_INVOICE_LINES_ALL holds invoice lines records
• AP_INVOICE_DISTRIBUTIONS_ALL

Accounting Entries Tables:

• AP_ACCOUNTING_EVENTS_ALL
• AP_AE_HEADERS_ALL
• AP_AE_LINES_ALL

Step 7: Import & Post to GL

Navigation: Payables Responsibility > View –>Requests

Run the concurrent program “create accounting” with the required parameters.