Oracle Fusion Procure to Pay cycle - Part 1

 Oracle P2P cycle comprises of the following transactions

•          Purchase Orders
•          Receipts
•          AP Invoices

First two transactions, Purchase orders and Receipts are part of Procurement module and AP Invoice is part of Account payable module

Integration between these transactions are done by two matching parameters like the following

1. .       Match Level
2. .       Receipt Routing

Let us fist look into Match level option in P2P cycle

Match Level will have three options and they are

• .        2 Way
• .         3 Way
• .         4 Way

 

Match Level	Parameter 1	Parameter 2
2 Way	PO Quantity	Invoice Quantity
	PO price	Invoice Price
3 Way	Receipt Quantity	Invoice Quantity
4 Way	Inspected/Accepted Quantity	Invoice Quantity

 

      

 

 

 

Receipt Routing will have three options like

Receipt Routing	Parameter
Direct Delivery	No Receipt Required
Standard Receipt	Receipt Required ,Both Receive and Deliver as one transaction
Inspection Required	Receipt Required 1.       Receive material 2.       Deliver material after completing QA

 

 

 

 

 

 

 

 

The practical scenarios in which we combine both match level and receipt routing for PO creation are like below

1.       If we are procuring a service item or providing consulting services, then we can go the below options in PO

·         Match Level:  2 way

·         Receipt routing: Direct delivery

2.       Procurement of a standard Item then it will be

·         Match Level: 3 way

·         Receipt routing: Standard Receipt

3.       Procurement of a High quality precision Item then it will be

·         Match Level: 4 way

·         Receipt routing: Inspection Required 

Procurement module setup steps: -

Common setup steps are

• .       Define Business Unit
• .       Supplier and sites creation

Some of the important Procurement setup steps are

• .       Manage user creation
•      Roles assignment for procurement 
•      Manage procurement agent
•      Manage Payment terms 
•      Manage Units of Measure 
•      Manage Procurement Document numbering 
•      Managing Purchasing Line types 
•      Manage Document styles 
•      Define Items for procurement 
•      Configure procurement Business Function
•       Manage Receiving Parameters