Procure to pay process

8 Make payments

Order to cash process

7 make payment invoice with PO number

(Receipt PO/purchase inv)

Accounts
Payable

Accounti
ng

6 make receivable inv

7-send sales inv

Accounts
Receivable

9 - Send payment made info

9 - send sales received info

8 Clear payment

4 Purchase inv

Customer
Suppliers

10 tally (Goods Cr. Payment Dr. / Goods Dr. Pay Cr.)

Business

Send order/pay info

6 - Send receipt PO number to instruct payment

4-receipt

1 Get order
2- Create PO as per store Reqt

Purchase
Order (PO)

Sales

5 Receive items & send receipt PO

1- Stores sends Reqt info

2 Pass order info
3 Send items

Stores
(Inventor
y of
supplies)

3 Send item

Application steps:
1) Inventory people assign required item at instance level by creating an item and entering attributes like
description, price, quantity required and date by when it Is required. An item with an Item ID is created and
stored in intermediate table
2) This item information is needed by the PO department for their application and hence they run a planning
program which loads the data from the intermediate table created by inventory department to the purchase
department for their records. Requisition ID is assigned against each item created
3) Now RFQ needs to be created for requisition ID by PO department that will be submitted to multiple
suppliers so they can submit quotations. Hence in RFQ Tab, details are entered with name of suppliers,
expected price and quantity (you can even copy requisition) and RFQ number will be assigned against each
requisition ID created. When RFQ report is run, in the output the list of all RFQs will be generated and this list
can be sent to suppliers as a fax or email as there is no direct link between our and suppliers systems
4) Now suppliers will send their quotations and those will be entered in quotations tab by assigning attributes
like exact price and discount details under price breaks tab and a quotation number will be created against
RFQ number (there will be multiple quotation numbers for same RFQ number as there are multiple quotations
sent by suppliers)
5) In order to select best quotation, under quote analysis tab you can enter requisition number and analyze all
quotations as per requirement and approve the best one (Please note all the interlinked data and information
against each item iD/requisition ID/RFQ number/quotation number is stored in backend tables (Toad for oracle)
and you can use select query with table and column criteria to check data
6) After approving quotation you can create purchase order to send officially to supplier by clicking Purchase
order tab. After assigning attributes like currency rate, shipping location and other details and clicking on
approve PO number will be generated.
7) Quotations summary and PO summary tabs give list of approved items which you can view

Inventory (Item ID)

Loads data from inventory table to purchase department
Requisition (Requisition ID against item ID)
After loading correct data (running planning report) requisition ID will be assigned by Purchase dept. for the item
Request for quotation (RFQ number against requisition ID)
After running RFQ report, RFQ numbers generated for suppliers

Supplier 1

Supplier 2

Supplier 3

Quotations received by suppliers and entered in Quotations Tab

Quotation 1 (Quotation no. against req ID x) Quotation 2 (Quotation no. against req ID x) Quotation 3
(Quotation no. against req ID x)

Select best quotation after quote analysis and approve

Create purchase order (independent or referencing to Quotation) by assigning attributes like shipping, pricing currency
and shipping date needed (PO number)

Select Approve tab to approve PO

Under Receipts tab create receipt by entering PO number (receipt number generated)

Supplier ships goods and stores confirm receipt of goods to Purchasing dept. against receipt number

Purchase department needs to instruct accounts payable department to clear payment to supplier

Under Responsibilities icon, search Payable responsibilities and Under Invoices Create Invoice for PO number

Select validate and accounting tabs in order to post invoice transaction to GL

Select Responsibilities GL and Journal Enter (batch from accounting invoice in previous step)

To clear payments, under Responsibilities icon Payables Payments (amt, bank a/c) and link invoice number