Streamlining the Procure to Pay (P2P) processes through Oracle Cloud ERP 

Oracle Procure to Pay (Oracle P2P) offers several benefits to the business; it links purchasing of materials or services with payables to maximize the return on invested capital.

Procure-to-pay (P2P) is a process that mainly processes all the transactions that a company has done—right from the purchase of raw materials to the completion of payment for them. This process is vital and helps businesses fulfill the requirements of goods or services in a timely manner. 

Key Functions of P2P Processes

  1. On business transactions: Dashboards and work areas available to the buyers and approvers. 
  1. Self-service to the suppliers: Single log on to the suppliers providing all the details to them regarding the transactions. 
  1. Enhanced sourcing capabilities: Proper supplier analysis and visibility of supplier lead time. 
  1. Standardised process: Proper Standard procedure for procurement functions. 
  1. Invoice alerts: All the pending balances and transactions are seen at one place. 

Procure to Pay Process Flows  

oracle procure to pay

Purchase Requisition 

Purchase requisition is a formal document prepared by the employee requesting a purchase or an order of goods or services on behalf of the organisation. The process of purchasing is not completed with this requisition being created. This request goes to the department heads and then after their decision, the purchase department starts the product purchase process. 

Request for Quotation 

After the purchase requisition is made a ‘request for quotation’ is sent to the supplier for the pricing and other relevant information. Then we receive a quotation for the same from the supplier. 

Purchase Order 

Once the quotation is passed a purchase order for the product is created if it’s a one-time purchase for various items. A purchase order is created only when the details of the goods or services required, estimated costs, quantities, delivery schedules, and accounting distributions are known accurately. 

When we create a purchase order (manually or from requisitions), the Supplier Item Catalog is used to retrieve quotation information. After the approval of a purchase order, a detailed order form with amounts and delivery requirements is sent to the appropriate vendor for fulfillment. 

Goods Receive Note (GRN) 

Once the goods have been delivered by the vendor, the company receives Goods Received Note (GRN)– a relevant receiving document which is then verified with the line items to ensure that everything ordered is delivered. 


Post the processes mentioned above, an invoice will be created by the vendor after which the company proceeds with the payment. However, before completing the payment it is essential to verify whether the purchase order and the receipt match. In the event of a mismatch, the accounts payable department might pay a different amount. 


After the verification and receipt of the invoice, businesses can now proceed with the payment. 


Reconciliation with the bank statement to verify whether the accurate amount has been debited is the next step. After the reconciliation, all the accounting entries are transferred to the General ledger and thus the P2P process is complete. 

Author: Vidhya Venugopal is a Project Management Trainee

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