{"id":859,"date":"2011-04-14T08:45:58","date_gmt":"2011-04-14T08:45:58","guid":{"rendered":"http:\/\/sendyoursmiles.com\/uncategorized\/procure-to-pay-cycle"},"modified":"2014-07-23T06:46:58","modified_gmt":"2014-07-23T06:46:58","slug":"procure-to-pay-cycle","status":"publish","type":"post","link":"https:\/\/erpschools.com\/erps\/articles\/procure-to-pay-cycle","title":{"rendered":"Procure to Pay Cycle"},"content":{"rendered":"

Diagrammatic representation of Procure to Pay cycle.<\/p>\n

\"Procure<\/p>\n

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Watch the procure-pay-cycle-video<\/a> \n\nArticle with 11i screen shots: Procure to Pay Cycle 11i<\/a>\n\nQuery: Procure to Pay Cycle Query<\/a>\n\n<\/pre>\n
1) Create Requisition:<\/span><\/strong><\/p>\n
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:<\/p>\n
Internal Requisition:<\/span> Internal requisitions provide the mechanism for requesting and transferring material from one inventory to other inventory.<\/p>\n
Purchase requisition:<\/span> Unlike Internal requisitions, Purchase requisitions are used for requesting material from suppliers.<\/p>\n
Navigation: Purchasing Vision Operations (USA) > Requisitions > Requisitions<\/p>\n
Choose the requisition type and enter the Item, quantity, Price details in the Lines tab.<\/p>\n
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In Source Details tab, specify the Buyer name.<\/p>\n
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Click the Distributions button. Enter the Charge Account.<\/p>\n
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Save the work. The status of the requisition will now be “Incomplete”. And now the Approve button is highlighted. The requisition needs to be approved first before proceeding further by the concerned authority. Submit this requisition for Approval by clicking on the Approve button. The status will now be updated to “In Process” .The workflow then will send an Approval notification to the concerned person (derived based on hierarchy used\u2014Position or Supervisor hierarchy) using which he can Approve or Reject the requisition.<\/p>\n
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At any time the status of requisition can be checked using the Requisition summary window.<\/p>\n
Navigation: Requisitions > Requisition Summary<\/p>\n
Enter requisition number and click on the find button.<\/p>\n
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We can also check the Action History of requisition (it will show details about who has submitted, approved and cancelled the requisitions) as below:<\/p>\n
Navigation: Tools menu > Action History.<\/p>\n
Underlying Tables:<\/span><\/p>\n
PO_REQUISITION_HEADERS_ALL<\/p>\n
PO_REQUISITION_LINES_ALL<\/p>\n
PO_REQ_DISTRIBUTIONS_ALL<\/p>\n
2) Create Purchase Order:<\/span><\/strong><\/p>\n
There are 4 types of Purchase Orders:<\/p>\n
1. Standard PO: A Standard PO is created for one\u2013time purchase of various items<\/p>\n
2. Planned PO: A Planned PO is a long\u2013term agreement committing to buy items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities, and estimated cost.<\/p>\n
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.<\/p>\n
4. Contract agreement: Contract purchase agreements are created with your suppliers to agree<\/p>\n
on specific terms and conditions without indicating the goods and services that you will be purchasing<\/p>\n
Navigation for creating a standard PO: Purchase Orders > Purchase Orders<\/p>\n
Choose type as Standard Purchase Order. Enter the Supplier, Buyer. In the Lines tab, specify the line number, line type, Item, quantity, price etc.<\/p>\n
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Click Terms to enter terms, conditions, and control information for purchase orders.<\/p>\n
Click Currency button to enter and change currency information for purchase orders, RFQs, and quotations.<\/p>\n
Click Shipments button to enter multiple shipments for standard and planned purchase order lines Purchase order shipment specifies the quantity, ship\u2013to organization and location, date you want your supplier to deliver the items on a purchase order line, and country of origin for the items. When you save, Purchasing creates distributions depending on the default information available.<\/p>\n
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To enter more shipment information, select the More tab.<\/p>\n