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P2P Cycle in Oracle Cloud Fusion
(step-by-step process and tables)

Introduction
“Procure-to-Pay,” referred to as “P2P,”
encompasses the entire set of steps that a
company or an organization performs when it
procures goods or services from a vendor.
Goods or Services mentioned here could
mean raw materials, professional services,
stationery, infrastructure, or any other
miscellaneous expenses.
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It is important to know how the P2P cycle is essential for the functioning of a business and exactly how it
works and the importance of each stage. Being unaware of the exact steps can lead to confusion and
frustration when working on troubleshooting errors related to the P2P process.

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The P2P cycle in Oracle Cloud Fusion is a process that starts with a requisition being created in Oracle
Procurement and ends with the supplier being paid fully or partially for the purchase. You should complete
several steps for the cycle to be complete.
What is the P2P cycle in Oracle Cloud
Fusion and its Usage?

1. Creating a Purchase Requisition
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The first step that initiates the Procure-to-Pay Cycle is Creating a
Purchase Requisition (PR). A requisition is a formal document
used when an employee needs to purchase or order something
on behalf of their organization.
In Oracle Cloud Fusion, an employee (or a user) creates a PR
by navigating to the “Procurements” à “Purchase Requisitions” à
“Enter Requisition Line” screen in Oracle Cloud Fusion Work
Area.
As shown in the screenshot, the requisition form must be filled
out. The requisition must include all the required fields like the
item description, part number, date, quantity, and price.

2. Request for quotation
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After requisitions are created by entering all the
information mentioned above, the user generates a
request for a quotation (RFQ). An RFQ is a Call for Bid, or
an Invitation for Bid sent by a company to its potential
suppliers.
An RFQ is a document sent to the supplier that outlines
the goods or services needed, along with the buyer’s
price. The RFQ also includes any other terms and
conditions relevant to the purchase.

3. Quotations
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A quote is an offer that contains the total price of the
products or services.
The supplier sends a quotation, whether in response to
an RFQ or not, through the Purchasing Documents
Open Interface. If you don’t receive quotes electronically
from your supplier, a quotation can be created manually
using a Quotations Form or copying the quotation from
an existing RFQ.

4. Quote analysis
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Quote Analysis is a process in which the quotations
received are then viewed and approved. In this process,
Purchasing allows you to review or approve quotation
information for an item or a category.
Users approve the quotations if they want buyers or
requestors to reference the quotations on POs or
requisitions.
Quote analysis enables users to review the supplier’s
quotation and ensure that it meets all the buyer’s
requirements.

After a quotation is approved, Purchasing allows you to
generate a Purchase Order (PO), a legal document outlining
the terms of sale.
The PO document includes the price, quantity, and need-by
date of the goods or services, it also includes any other
relevant terms and conditions associated with the
purchase.
POs are created, saved, and then submitted for approval
internally within the organization.
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5. Creating a purchase order
Once approved, the PO document is generated with amount and delivery requirements and then
transmitted to the vendor for fulfilment.

Once the goods/services are ordered and shipped by the
vendor, they must go to their final destination. The receipt is
done by entering quantity (accepted quantity) and/or
receiving location into the receiving form in Oracle
Purchasing.
Creating receipts and records of goods arriving at the
distribution center into the warehouse system. The supplier
delivers the goods or services, and the relevant receiving
details are entered, with line items verified to ensure that
everything ordered has been delivered.
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6. Receiving the goods or services
The receiving form will include fields for the supplier, like ship-to address, and delivery date. This is
completed once all the information has been entered.

Once the receipt is entered, the invoice can be
created in Oracle. An invoice specifies the price of
the goods or services and any other terms, and an
essential aspect of the invoice includes a due date
for payment.
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7. Creating an invoice

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The invoice which is created and approved needs to be
reviewed. This step is known as invoice validation,
wherein the invoice is checked and validated. The
supplier’s invoice is matched and ensures it aligns with
the PO created earlier.
After Invoice validation and approval, the Accounts
Payables team generates accounting entries. These
accounting entries debit from the Accounts Payable
Account and credit into the Cash Account.
8. Create accounting entries

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9. Making the payment
The last step in the P2P cycle in Oracle Cloud Fusion
is making the payment to the supplier/vendor. The
payment is made by entering the invoice and PO
numbers (and/or receipt) into Oracle’s payment form.
The payment form also includes more information
about the supplier, ship-to address, and delivery date.
After these are entered, the payment is made and the
cycle ends.

Common mistakes during the P2P cycle in
Oracle Cloud Fusion
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Common errors that can
occur during the P2P
process in Oracle Cloud
Fusion are as follows:
Incorrect/missing account
codes
Invalid/missing vendor
information
Inaccurate/missing purchase
order information
Invalid/missing invoice
information
Incorrect/missing payment
info

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The P2P cycle involves all necessary and optional
processes that help ensure a smooth requisitioning and
procurement of goods and services, and the accuracy
of financial data in Oracle Applications.
This blog post outlined the P2P cycle in Oracle Cloud
Fusion, including the accounting entries and tables. We
hope you found this information to be helpful!
Conclusion

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Phone
+1-408-899-7200
Email
info@jadeglobal.com
Website
www.jadeglobal.com
USA I CANADA I UK I AUSTRIA I INDIA
www.jadeglobal.com
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