Oracle EBS – Procure to Pay Process
In Procure to Pay process, firstly you enter the order requisition in purchasing order module. Then dealer sends the quotation reply for requisitions or RFQ. You can approve the quotation of a supplier in approval stage after to record all information received from your suppliers such as terms and conditions, quality of product, shipment and price details.
Then you can go ahead for next process Purchase Agreement which contains two types, they are blanket purchase agreement and contract purchase agreement. You can use blanket purchase agreement to communicate to that supplier that are negotiating pricing before actually releasing company purchases. It must have detailed information besides the header level information and contains lines for specific terms, promised date, quantity, need by date, and prices.
On the other hand, you can create a contract purchase agreement with a supplier to agree on terms and conditions without entering into an agreement for particular goods or services. It can maintain competitive solicitation through the request for quotation process and then through the purchase releases because a contract purchase agreement has header level information and has no detailed information.Oracle fusion Header level includes terms and conditions, currency supplier, and a supplier site. you can enter a purchase order for confirms to purchasing services or goods.
Whenever you get items or services that time you enter receipts in the system. At that time, accounting entries should be debited inventory material value and credited payable clearing account. Whenever you get the generated invoice in account department, it enters in the system that time accounting entries should be debited to payable clearing account and credited to the payable account. Then you can make a payment to a dealer that time to accounting entries should be debited to payable liability and credited to cash clearing account. After reconciliation between cash management department and bank, accounting should be debited to cash clearing account and credited to the bank or cash account.
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