Procure to Pay Life Cycle

End to End Process

P T P Flow
Objectives: ................................................................................................................................................ 3 Pre-Requisites: .......................................................................................................................................... 4 Process Steps: ........................................................................................................................................... 5 Create Supplier: ABC Vodafone Supplier .................................................................................................. 6 Create Supplier: ABC Idea Supplier ......................................................................................................... 15 Check the Quantity of Item in Sub Inventory ......................................................................................... 25 Stage-1: Create Requisition .................................................................................................................... 28 Stage-2: Create Purchase Order ............................................................................................................. 34 Stage-3: Receiving Items ......................................................................................................................... 39 Check the Quantity of Item in Sub Inventory after Receiving ................................................................ 43 Submit Program for Pay on Receipt Auto invoice................................................................................... 46 Stage-4: Invoice and Payment................................................................................................................ 50 Stage-5: Create Accounting for Payment and Invoice ............................................................................ 60

Page 2

Objectives: After completing the document one should be able to understand the whole
overview of Procure to Pay Process implementation. Able to create a requisition. Create a Purchase Order Create a Receipt. Create an Invoice automatically. Able to make payment.

NOTATIONS:
(N) = Navigator (M) = Menu (T) = Tab (ST)= Sub Tab

Page 3

Pre-Requisites:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. You have a login name and password. User has assigned Inventory, Purchasing, and Payables Modules. User should assign employee and employee assigned as a buyer. Employee position has the approval limit. There should be quantity in Inventory for the item. Supplier should have one Site with purpose Purchasing and Payment Supplier (T)Purchasing (ST) Self Billing Pay On: Receipt and Invoice Summary: Pay Site User should know to whom he needs to supply. User should know from which Bank account the money has to be debited. Payment Method is assigned at Supplier Site level

NOTE: This document is explained considering that all the basic setups are done.

Page 4

Process Steps:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Check the quantity of the item in Sub inventory. Enter the Purchase Requisition. Approve the Purchase Requisition. Create the Purchase Order. Approve the Purchase Order. Raise a receipt on receiving the quantity. Check the quantity in Sub inventory. Raise an Invoice automatically. Validate the Invoice. Do the payment. Create Accounting for Invoice Create Accounting for Payment

Page 5

Create Supplier: ABC Vodafone Supplier

(N) Suppliers> Entry Suppliers

Click on (B) Create Supplier

Select Supplier Type: Standard Supplier Enter Organization Name, Alias, Country

Page 6

Click on (B) Apply Click on (ST) Address Book

Click on (B) Create

Page 7

Enter Address Line1, City, County, State, Postal Code, Address Name and Address Pursose

Click on (B) Continue Select Site Name for Operating Unit Click on (B) Apply

Site is created Click on (i) Manage Sites

Page 8

Enable Purchasing and Pay

Click on (B) Apply

Click on (ST) Purchasing

Page 9

Enable Create Debit Memo from RTS Transaction Click on (B) Self Billing

Select Pay on: Receipt, Invoice Summary Level: Pay Site and Enable Create Debit Memo from RTS Transaction

Page 10

Click on (B) Save Click on (B) Receiving

Enter Enforce ship to, Receipt Routing, Match Approval Level, Quantity Received Tolerance, Quantity Received Exception, Days Early Received and Days Late Receipt Allowed

Page 11

Click on (B) Save Click on (ST) Payment Details

Select Default Payment Method

Page 12

Click on (i) Update on Supplier Sites

Enable Default Payment Method Click on (B) Save Click on (ST) Invoice Management

Page 13

Select Pay Group: ABC PAY GROUP Click on (B) Terms

Select Terms: Immediate Click on (B) Save

Page 14

Create Supplier: ABC Idea Supplier

(N) Suppliers> Entry>Suppliers

Click on (B) Create Supplier

Select Supplier Type: Standard Supplier

Page 15

Click on (B) Apply

Click on (ST) Address Book

Click on (B) Create

Page 16

Enter Address Line 1, City, County, State, Postal Code, Address Name and enable Address Purpose: Purchasing

Click on (B) Continue Select Site Name for Operating Unit Click on (B) Apply Click on (i) Manage Sites

Page 17

Enable Purchasing

Click on (B) Apply

Click on (B) Create

Page 18

Enter Address Line 1, City, County, State, Postal Code, Address Name and enable Address Purpose: Payment

Click on (B) Continue Select Site Name for Operating Unit Click on (B) Apply Click on (i) Manage Sites

Page 19

Click on (i) Manage Sites for Payment Site

Enable Pay

Click on (B) Apply Click on (B) Purchasing

Page 20

Enable Create Debit Memo from RTS Transaction And enable Create Debit Memo from RTS Transaction at Purchasing Site Level

Click on (B) Save Click on (ST) Receiving

Enter Enforce ship to, Receipt Routing, Match Approval Level, Quantity Received Tolerance, Quantity Received Exception, Days Early Received and Days Late Receipt Allowed

Page 21

Click on (B) Save Click on (ST) Payment Details

Select Default Payment Method Click on (B)Save

Click on (i) Update for Payment Site

Page 22

Enable Default Payment Method Click on (B) Save Click on (ST) Invoice Management

Select Pay Group: ABC PAY GROUP

Page 23

Click on (T) Terms Select Terms: Immediate

Click on (B) Save

Page 24

Step wise Analysis with Screen Shots:

Check the Quantity of Item in Sub Inventory.
Login to Inventory Module (N) On-hand, Availability >On-hand Quantity

Enter Sub inventory and Item/Revision and Click on (B) Find

Page 25

Click on (B) Find

Click on (B) Availability

Page 26

Page 27

Stage-1: Create Requisition

Raise a Requisition Approve it, Autocreate a Purchase Order.
Login to Purchasing Module (N) Requisitions>Requisitions

Enter the Purchase Requisition

Enter the Supplier Information, Item, Quantity, Need by date, Sub inventory

Page 28

Click on Save Icon or Ctrl+S (For Saving)

After saving, Requisition Number will be generated (as shown in the Screen Shot) copy the Number Click on (B) Approve

Page 29

Click on (B) Ok

Navigate to Requisition Summary to check Requisition Status (N) Requisitions> Requisition Summary

Enter the requisition number

Page 30

Click on (B) Find

Requisition status has been approved

Now we need to create a Purchase Order based on the Requisition. (N) Auto Create

Page 31

Remove the Buyer in Buyer field

Enter Requisition Number Click on (B) Find

Page 32

Select Requisition

Click on (B) Automatic

Page 33

Click on (B) Create

Stage-2: Create Purchase Order

Enter Purchase Order Match level, Invoice Match Option, Approve Purchase Order and Check Purchase Order status.
Now Purchase Order is created

Click on (B) Shipments

Page 34

Click on (T) More

Select Match Approval Level: 3-Way

Page 35

Select Invoice Match Option: Receipt Close Shipments window

Click on (B) Approve

Page 36

Click on (B) Ok

Check the status of the Purchase Order Number (N) Purchase Order > Purchase Order Summary

Page 37

Enter Purchase Order Number

Page 38

Click on (B) Find

Status of Purchase Order is approved

Stage-3: Receiving Items

Receiving Items and Check Quantity in Inventory (N) Receiving > Receipts

Page 39

Enter Purchase Order Number

Click on (B) Find

Minimize Receipt Header Window

Page 40

Enable Quantity Receive Click on Icon Save or Ctrl+S (For Saving)

Page 41

Click on (B) Header

Make a note of Receipt Number

Page 42

Check the Quantity of Item in Sub Inventory after Receiving

Login to Inventory Module (N) On-hand , Availability> On-hand Quantity

Enter Sub inventory and Item/Revision and Click on (B) Find

Page 43

Click on (B) Find

Page 44

Click on (B) Availability

Page 45

Submit Program for Pay on Receipt Auto invoice

Login to Purchasing Module (N) Reports> Run

Click on (B) Ok

Page 46

Select Program: Pay on Receipt Autoinvoice

Enter Receipt Number Parameters Window

Click on (B) OK

Page 47

Click on (B) Submit

Page 48

Click on (B) No

Click on (B) View Output

Make a note of Invoice Number

Page 49

Stage-4: Invoice and Payment

Query Invoice in Payables window, Validate and Pay Invoice Login Payables Module (N) Invoices> Entry> Invoices
Query Invoice Method-1

Click on Torch Icon

Page 50

Enter Invoice Number Click on (B) Find

Page 51

Query Invoice Method-2

(N) Invoices> Entry> Invoices

Press F11 on Key Board

Enter invoice number in Invoice Number Field Press Ctrl+F11 on Key Board

Page 52

Validate Invoice Click on (B) Actions

Enable Validate and click on (B) Ok

Page 53

Now Status of Invoice is validated Click on (B) Lines

See the Purchase Order is Automatically Match to Invoice and PO Number, Receipt Number and Quantity

Page 54

Click on (B) General

Click on (B) Actions

Page 55

Enable Pay in Full Click on (B) Ok

Supplier Information is defaulted

Page 56

Enter Payment Date, Bank Account

Enter Payment Document, Payment Process Profile

Page 57

Click on Save Icon or Ctrl+S (For Saving)

Click on (B) Actions

Page 58

Enable Create Accounting and Final Click on (B) Ok

Click on (B) Ok

Page 59

Stage-5: Create Accounting for Payment and Invoice

See Accounting Status is processed Close this Payment Window To View Accounting Entries for Payment (N) Tools> View Accounting

Page 60

Close Subledger Entry Lines Window and Payments Window

Click on (B) Actions

Page 61

Enable Create Accounting and Final Click on (B) Ok

Click on (B) Ok

Page 62

See the Status of Accounting Yes To View Accounting Entries for Invoice (N) Tools> View Accounting Events

Page 63

Click On (B) View Journal Entries

Page 64

Page 65