Before we embark our journey into the wonderful world of accounts payable, let’s take a 50,000-foot view of the lay of the land of Procure to Pay process

The P2P cycle can offer an Organization a complete platform with procurement of goods and services, raw materials, components, office supplies, etc. 

When there is a purchase made from a vendor or a Supplier there should be a payment made associated to that purchase.  

To summarize the entire process of purchasing goods and services and making payment for that purchase of goods and services to the supplier or vendor is called procure to pay process.

How it Works in Oracle E-Business Suite

• Create Requisition in iProcurement or Purchasing module

• Create Purchase Order (Manual or Autocreate)

• Create (Inventory) Receipt of goods for a given purchase order

• Enter AP Invoices (Manual or PO Match)

• Make Payment (Quick Pay or Payment Batches)

• Create Accounting and Transfer to GL

We will see each of the processes in more detailed manner with some live examples how we perform transactions in Oracle Application EBusiness Suite. 

Invoice Entry and Maintenance

• Enter invoice header, lines and invoice distributions

• Match to purchase orders

• Validate invoices

• Apply and release holds

• Invoice approval workflow

• Important Reports for Invoice Management

Create Accounting

• Create Accounting

• Payables Transfer to GL

Payment Processing

• Overall Payment Process

• Enter Payments – quick or payment batches

• Review Payment Batches and Adjust Payments

• Prepayments Maintenance

• Reconcile payments with Cash Management

• Important Reports for Payment Management

Payables Period Close Process

• Pre-Requisites for Period Close

• Period Close Overview for Payables 

• Reconcile and Complete AP transactions for the period

• Invoice Validation program

• AP PO Reconciliation Report

• Important Reports for Period Close