Oracle R12 Inventory Configuration: Key points to Avoid Mistakes

Oracle Procure to Pay Process

1)Demand
The procurement process generates and manages requests for the purchase of goods. The demand for purchase items may be a one-time event or may recur in either predictable or random time intervals.

2)Source
The procurement sourcing process covers the business activities related to the search, qualification, and selection of suitable suppliers for requested goods and services.

3)Order
The procurement ordering process includes purchase order placement by the buying organization and purchase order execution by the supplying organization.

4)Receive
The receipt process acknowledges that a purchase order has been duly executed. For orders of physical goods, it will typically include the receipt, inspection and delivery of the goods to inventory or to another designated location. For orders of services, it will typically consist of a notification from the requester or the approving person that the service has been performed as agreed.

5)Pay
The payment process consists of those activities involved in the payment for ordered goods and services.