What is the difference between p2p and o2c

The quote-to-cash process is one that covers the following steps: Contract Lifecycle and Order Management. The working capital sits between P2P and O2C cycle. Though both link each other still there are always confusion, below is the difference between party and customer.

These P2P software systems replace paper documents and manual data entry to make procurement, purchasing, payables, payments, and accounting processes much more efficient. It combines data mining with process management disciplines and supports the automated discovery.

General accounting and reconciliations are the most frequently outsourced R2R activities given their transaction-intensive nature. The process begins with analyzing the product or service requirement and developing a sourcing strategy.

With the E-Invoicing Exchange Summit virtual events you have a great opportunity to stay up to date with the latest developments in the field of E-Invoicing. Before we get into the nitty-gritty details of each process, it can be helpful to understand the high-level differences between each process. Two reasons for the monthly accrual adjusting entries are: To report the revenues and the related receivables which were earned during the month, but the transactions had not been recorded in the accounts as of the end of the month.

Efficiency is key to avoiding slow fulfillment times, low customer experience scores and delayed customer payments. Exploratory working material on which no decisions have been made. Journal Import. For such items no need to create Item code for all. A digital solution automates manual ineficiencies and low-value tasks in O2C and P2P processes with tools that unify teams and their operations within a single, integrated platform.

Akanksha Prasad says: October 19, at am. No matter the complexity of the organisation, automation solutions give supply chain leaders an added level of intelligence over the people, processes and technology that constitute their day Empowered Staff to Handle O2C Exceptions. Scribd is the world's largest social reading and publishing site. While both the P2P and O2C services follow almost similar sequential processes, the difference lies in their applicability.

Report Incident. And now the Approve button is highlighted. The status of the requisition will now be Incomplete. Source-to-contract S2C refers to the collective set of procurement processes adopted when sourcing products or services. In recent years, companies have carefully looked at their purchase to pay processes to: Reduce overall supply chain and WCM is the part that sits between the P2P and O2C cycles. Quote-to-cash captures only the revenue generating cycle of The order to cash process flow has six basic steps: Order management — The cycle begins when a customer makes an order.

There are two schools of thought in the shared services world regarding how to define e-invoicing. Details included in the requisition order will typically include details of the goods being purchased as well as the quote provided by the vendor and any A single ledger to manage multiple currencies.

Organizations set their own pace, choosing to automate one process at a time or entire business cycles e. Payment to the vendor. This is a set of business processes to manage from sales order right through to customer payments. To ensure acceptable performance and the usability of the user interface, there are some limitations you need to be aware of when you plan to use business process flows: 1 O2C cycle with tables and concurrent programs.

During this transmission the data is never touched by a human Trophy Points: The procure-to-pay cycle has become a standardized process for both procurement practitioners and service providers alike.

Answer : Show editor is the generic built-in which accepts any editor name and takes some input string and returns modified output string. An increase in the number The 3-way match between PO, ASN, and invoice helps make vendor payments in a timely and efficient manner. What is difference between company and company code in sap? Because of the great similarities between procure-to-pay vs source-to-pay, a lot of people find it difficult to see that Unlock the real value in P2P to build a healthier bottom line, by saving time, procure to pay solution unmatched by any other company in the market.

Creating unique Item coding for each SKU's. Lower interest rates: P2P loans usually come with lower interest rates because of the greater competition between lenders and lower origination fees. August 12, Dunning - The process of notifying vendors to ensure the resubmission of vendor declarations that are about to reach their expiration dates.

Though this is not an exact procedure to find out the on hand quantity, this is just for example. Daily Bulletin. When the payables department receives an invoice from a supplier, it matches the following information: The information on the supplier invoice to a copy of the related purchase order that has been forwarded to it by the purchasing department. No matter the complexity of the organisation, automation solutions give supply chain leaders an added level of intelligence over the people, processes and technology that constitute their day August 12, As you can see, sales process starts with order sales order and ends with cash customer payment , hence above cycle is referred as order to cash cycle or OTC cycle.

It is not uncommon to see those terms referred as O2C, O2I and so on. Trophy Points: Screen can be personalized by creating a folder and assigning your most commonly used transactions. The P2P process deals with procurement while the O2C process deals with sales. Please supply both an invoicing rule and an accounting What is the difference between view and materialized view and how we will create the materialized view?

The target, a harmonized template could be designed at the outset of the project or developed as you go. P2P 05 Aug The data in Data Pools is separated and if you use one Data Pool per process, you will need to extract the data that is shared between processes 21 Jan There are many elements to the P2P process, each of which is important in the overall process.

Core processes directly serve external clients and generate income. Good O2C and P2P information, thank you for sharing your knowledge. Difference between expense item and inventory item.

But what exactly does global business services mean? This webinar will answer these two questions. BVA Framework path to value attributes such as the sales organization or customer in the O2C process.

The screenshots given below are taken from R Almost all every time we will connect to apps schema only. Order Management - The order to cash cycle kicks at the moment the system receives an order from the customer. Even the best engineered and integrated processes may have an occasional exception.

Some customers or sales staff do not enter an order right, a short system downtime causes some orders to fall out of the process, or one of dozens of other potential problems can arise.

Whereas, process mining ignores these. Task Mining is employed for improving user experience and further discovering automation opportunities. May 23, So,here are the information for data flow. Oracle has developed this ERP solution which truly covers these both cycles as well as many others. Procure to Pay means Procuring Raw Materials required to manufacture the final or finished Goods to Paying the Supplier from whom the material was purchased.

But this is not just two steps. It involves many steps. When your final product is ready to be sold, you market it. The customer gets fascinated with the marketing campaign and decides to buy your product and from here starts the O2C cycle.

This is how the P2P and O2C cycle works, but this is not the only way, obviously there are many other applications with different cycles. This is one of them. Nice job buddy, you have given basic theoratical information which is realy vary useful for beginners. This is Excellent Information for fresher. If any information anybody hav which help me plz send me to my id samshah yahoo.

Thanking you. Good O2C and P2P information, thank you for sharing your knowledge. Set Profile option Mo:Operating unit for all responsibilites which is worked at operating unit level. Create Work day calender Create inventory Organization. Login as sysadmin and run replicate seed data program. Oracle Applications was developed as a Global product.

Because of this reason it does not supported by some acts like customs,central excise,vat,cst All other contries are also having some contry specific requirements. To meet the above requirements Oracle developes software named patches. We can add this patches to the base product of the oracle applications. Indian Localization is also one patch which meets the contry specific requirements.

What is India Localization Product? India Localization product also provides valuable information that can be used for statutory and management reporting. The product uses its own tax engine, for handling taxes applicable across 'Procure to Pay' and 'Order to Cash' transactions. In India Localization, taxes are defaulted based on the pre-determined setup Tax Defaultation. Tax amounts are calculated based on precedence such as transaction base value, tax on tax, or assessable value as specified by tax authority Tax Calculation.

The Tax Amount is considered for inventory valuation, recoverability and accounting based on the pre-determined recoverability and accounting rules Tax Accounting and Recoverability.

Details of recoverable tax amount are recorded as part of the repository Tax Recording. This information can further be used to calculate the final tax liability arising on settlement at the end of the tax period Tax Settlement and for statutory reporting Tax Reporting. Form personalization is a declarative feature that alters the look and behavior of the oracle forms with out changing base code.

This concept was introduced in the release All E-Business suit forms can be personalized. By using form personalization you can Display your own terminology. Stream lines the screen interaction. Implement security policies. Add your own validation and error messages. There are some limitations: 1. You can only change what oracle forms allows to be changed at run time.

You can only respond to limited trigger events only. Your changes may be overridden by oracle base code. Hai Friends Please find the AIM Documents list Business Requirements Mapping BR. Documentation DO DO. Application Implementation Method is a provan approach, which specifies all the activities which are required to implement oracle applications successfully. This phase explains Existing business practices Catalog change practices Leading practices Future practices.

This phase explains about the Base line questionnaire and The gathering of information. In this phase we can match all the requirements of business with the standard functionality of the oracle applications. Explains the infrastructure requirements to implement oracle applications.

For example: desktops software hardware people In this phase concentrate on developing the new functionality which is required by the client. This is called customization. In this phase explains how to design a forms, database and reports Is the process of converting or transferring the data from legacy system to oracle applications? This is called as data migration.

Ex: transferring the closing balances of the previous year as an opening balances to next year. Documentation:[DO] I n this phase we have to prepare module wise user guides and implementation manuals which helps in the implementation. It is done by a functional consultant. Performance testing means evaluation of transaction saving time, transaction retrieval times.

It is done by a technical team. This phase explains about the removal of the legacy system of the client. The entire user should be trained with new oracle applications.

In this phase we have to prepare user manuals. A process of decommissioning of legacy system and the usage of new oracle application system begins in this phase. If you enter an invoice for expenses or asset purchases for more than one balancing segment, you might want to use automatic offset method to keep your payables transaction accounting entries balanced.

If we enable account as automatic offset, it takes the opposite approach with one segment being retained from the default GL account and all other segments being retained from the invoice distribution. Journal source and categories is used to differentiate journal entries and to enhance your audit trail. Journal categories help you differentiate entries by purchase or type. Oracle applications provided required source and categories with default. Define inter company and suspense accounts for specific sources.

Run auto post program for specific source Import journals by source Freeze journals imported from sub ledgers to prevent users from making changes. If you have journal approval enabled for your set of books, you can use journal source to enforce management approval of journal before they are posted.

Define inter company and suspense accounts for specific category. Use document sequence to sequentially number journals by categories. Assets Additions. Use the Quick Additions process to quickly enter ordinary assets when you must enter them manually. You can enter minimal information in the Quick Additions window, and the remaining asset information defaults from the asset category, book, and the date placed in service.

Enter a Description of the asset. Enter the asset Category. Select the Asset Type of the asset. For a description of the assets types, see: Asset Descriptive Details 6. Assign your asset to a corporate depreciation Book. Enter the current Cost.

Optionally update the Date Placed In Service. Update the depreciation method and prorate convention, if necessary. The depreciation method and prorate convention are defaulted from the category default rules. However, you can update them here. Assign the asset to an Employee Name optional , a general ledger depreciation Expense Account, and a Location. Click on the Done Button.

The Multiple Reporting Currencies MRC is the set of unique feature embedded in Oracle applications, which allows you to report on and maintain accounting at the transaction level in more than one functional currency.

The primary functional currency is the currency you use to record transactions and maintain your accounting data within the Oracle E-Business Suite. In the primary set of books, the functional currency is always the primary functional currency.

Usually, the primary functional currency is the currency in which you perform most of your business transactions, and the one you use for legal reporting. A reporting set of books is a financial reporting entity associated with a primary set of books. While the reporting set of books has the same chart of accounts and accounting calendar as the primary set of books, its use of a different functional currency reporting functional currency allows you to report in a different functional currency than that of your primary set of books.

You must define a separate set of books for each of your reporting functional currencies. Its syntax is similar to that of the DB2 Load utility, but comes with more options. Each segment of the code can represent a characteristic of the entity. For example, consider an account number for a bank. A complete bank number may consists of various segments like the country code, area code, city code, branch code, account type, account number etc.

From the below picture you can find the diffrence between purchase orders. Define Requition? What are the types of requitions? What is the use of requition template? What is the procedure for qequition import? What is ment by RFQ? What is ment by quatation and quotation analysis? What is ment my PO? What are the types of PO?

What are the types of receipts? What is ment by receipt routing? What is the purpose of receiving transactions? What is the use of auto creat? What is ment by pay on receipt auto invoice? What do you mean by controlling buyers workload? What is Matching? What are the various methods of matching? What is the use of defining security hierarchy? What is the difference between accrue at period end and accrue on receipt?

Why are expenses items typically accrued at period end, and why are inventory items always accrued on receipt? Define recurring journal formulas for transactions that you repeat every accounting period, such as accruals, depreciation charges, and allocations.

You can use recurring journals to create three types of journal entries:. Skeleton Journal Entries: Skeleton journals have varying amounts in each period. You define a recurring journal entry with out amounts, and then enter the appropriate amounts each accounting period. There are no formulas to enter, only account combinations. For example, you can record temporary labor expenses in the same account combination every month with varying amount due to fluctuations in hours.. Standard Recurring Journal Entries: Standard recurring journal entries use the same accounts and amounts each period.

For Example: Record monthly lease expenses with constant amounts charged to the same account. Recurring Journal Formula Entries: Formula entries use formulas to calculate journal amounts that vary from period to period.

For example, calculate commotion to sales representative based on the sales of the month. Closed: In this status Journal entry and posting not allowed until accounting period is reopened. Reporting and inquiry allowed. Permanently Closed: In this status Journal entry and posting not allowed. You cannot change this period status.

You can change the status. Never Opened: Journal entry and posting are not allowed. General Ledger assigns this status to any period preceding the first period ever opened in your calendar, or to any period that has been defined, but is not yet future-enterable. Future-Entry: Journal entry is allowed, but posting is not. Your period is not yet open, but falls within the range of future-enterable periods you designated in the Set of Books window.

You cannot change this period status without using the concurrent process to open the period. Difference between multiple databases, multiple instances, and multiple installations? In Oracle database terminology, an instance is the combination of background processes and memory structures that allow the user to access data in an Oracle database.

In an applications context, instance and database are often used interchangeably. Multiple installations, or "installs" means that Oracle Applications are installed multiple times on a single database. Multiple databases or instances refer to a scenario in which there may exist numerous databases, each with one or more installations and implementations of the Oracle Applications.

What are the types of invoices? What is difference between debit memo and credit memo? What is meant by with-holding tax invoice? What are the mandatory setups in AP? What is the difference between PO default and quick match? Use of recurring invoice?

Steps for payment batch? Purpose of Payable invoice open interface? Payable open interface import? Expense Report Import Multi Currency payments? Can we implement MRC at Payables? Use of Distribution set? Accounting Methods? Use of automatic offset method? What does the Unaccounted Transaction Sweep Report do? What reports should I run before closing the period? What is the program to transfer data from AP to GL? What is meant by void payments? What are the types of journal categories available in the AP?

What is meant by matching and what are the types of matchings available? Types of Prepayments? And difference between them? What is a Hold and Release What is Zero-Payment in AP What is Proxima Payment Terms? What are the tables associated with Invoice?