Procure to pay presentation

Prepared by Alim Al Razi

OBJECTIVES

About ERP.What is procure to pay?Oracle Procure to Pay Process.About Requisition.Purchasing Order.Receipt. Invoice.Payment.

What is ERP?

ERP stands for Enterprise Resource Planning.

ERP is an enterprise-wide information system the facilitates the flow of information and coordinates all resources and activities within the business organization.

Why Do I Need It?

ERP is an enterprise-wide information system that facilitates the flow of information and coordinates all resources and activities within the business organization.

Of all the software an organization can deploy, ERP has potentially the most direct impact on reducing costs.

ERP solutions are effective for reducing costs through improving efficiencies and decision-making.

What is procure to pay?

Procure to Pay is one of the important Process in Oracle Applications. Procure to Pay means Procuring Raw Materials required to manufacture the final or finished Goods from a Supplier to Paying the Supplier from whom the material was purchased. But this process is not just two steps. It involves many steps. Let’s see the steps and Oracle Application involved in performing those steps.

Oracle Procure to Pay Process

What is requisition?

Written order or a formal demand by the user(s) of a good or service (which is not made available without a specific request) to the organization's Demand.

How many types of requisition?

There are two types of requisitions:

Internal Requisition – Basically used when there is a Requirement from One Inventory Organization to the Other Inventory Organization (Inter- Organization Transfer).

Purchase Requisition – Basically used when there is a Requirement to be fulfilled by External Sources i.e. Suppliers, Requirement from MRP, Requirement from WIP, Requirement from Sales Order etc.

Creation Of Purchase Requisition

A purchase requisition form usually comes from a specific department and list items needed for certain tasks or activities.

Purchasing order:

Purchasing supports four types of purchase orders:

StandardBlanketContract Planned

Receipt of materials:Purchasing lets you control the items you order through receiving, inspection, transfer, and internal delivery. You can use these features to control the quantity, quality, and internal delivery of the items you receive.

Creation of Payables InvoiceOnce you’ve received goods or service from your supplier, you’ll also receive an invoice.  Using Payables you can record invoices in a number of different ways.

Payment to Supplier

Once invoices are validated, they can be paid. Payables integrates with Oracle Payments, the E-Business Suite payment engine, to handle every form of payment, including checks, manual payments, wire transfers, EDI payments, bank drafts, and electronic funds transfers.  Payables also integrates with Oracle Cash Management to support automatic or manual reconciliation of your payments with bank statements sent by the bank.

Thanks Of All

ALLAH HAFEEZ