P2P (Procure to Pay)
If there is any requirement in the inventory, we rise the requisitions that has to be
approved by inventory department then that information will be passed to purchase department
based on approved requisition.
purchase department will rise the RFQ and purchase department will receive the
quotations from different vendors there would be analysis process,
And finally purchasing department will choose the best quotation based on that they
will be place the order to suppliers which is approved and whenever we receive the material
from the supplier that will record as receipt or call it as a goods receipt note
And if any damaged to items we may return to suppliers which we will be call as
purchase returns, the purchase department will pass GRN information to payable department
they based on the GRN information,
Payable department will create the purchase invoice and once we arrive the due date,
they will process the payment against that purchase invoice is related to asset purchase the
payables department will share the information with the asset department.
Based on that information asset department will create the fixed asset based on the
usage they will be calculating the depreciation agrees that asset and our side the payables
department will share the payment information with the cash management or cash Department
We are preferring the application so let’s use the application only the payable
department will share payment information the cash management.
The cash management will take the responsibility of meeting the bank accounts and
cash management will perform the bank statement reconciliations.
Finally, the information we have to send to GL application so based on the data which
is available in financial GL application we prepare the financial reports.
O2C CYCLE
When there is an order from the customer the sales department will receive as a sales
order or as simply you can say when there is a order from the customer will record the sales
order within the order management and will book the sales order in instead of order
management module.
So it’s all about the partner business to manage that business process what are the
applications we are going to use, O2c cycle is clearly here when we get the order from the
customer the sales department will record that in their books are the sales order and by checking
the stock availability within the inventory department,
They will put the sales order whenever we move the materials from sub inventory to
staging that would be recorded as a pick release by sales department.
Whenever we ship the material from the inventory to customer location that can be
tracked as a ship confirmation by sales department.
If there are any returns from the customer those returns, we call as sales returns. The
sales return also can be managed by sales department. So finally, the sales department will
communicate the ship confirmation details with our receivables department against the ship
confirmation details by the receivables department. Create sale invoice whenever they get the
payment from the customer that they will be record as receipt and the receipt information they
will share to the oracle cash department.
The receivables department will share the receipt information with the cash department,
so that the cash management can use the receipt information for bank statement reconciliation,
finally all the information will share with the general ledger application to prepare the financial
reports. This process is called the O2C cycle.
P2P & O2C Cycle
