Full Oracle Procurement Business Process Overview
Let’s start by understanding the key features of the Oracle Procurement Cloud business model.
The Procurement business process model refers to the end-to-end business processes enabled by the Oracle applications to create a complete Procure-to-Pay life cycle, from the requisitioning and procuring of goods and services from suppliers to receiving and paying from them.
Let’s now take a deeper look at various life cycles and Oracle products that are associated with them.
The main Oracle Cloud Procurement Business processes are as below:
- Requisitioning
- Purchasing
- Receiving
- Paying
- Accounting
It includes 5 different life cycles, which are: Supplier Registration to Supplier Performance, Sourcing Process, Contract Creation to Spend Compliance, Requisition to Receipt and Receive Invoice to Payment. Let’s review each one of these in more detail.
The Supplier Registration to Supplier Business Process refers to the cycle of events that begins with sourcing the right Suppliers, who can meet the organization’s requirements. Suppliers register themselves and provide all necessary documentation and answer questionnaires. Suppliers who are completely onboard can then begin to collaborate with the organization via the Supplier portal. Also, their performance is continuously tracked by Supplier performance reporting.
The Insight to Smart Sourcing Business Process refers to the entire Sourcing process from identifying an opportunity, initiating a sourcing event based on that opportunity, and managing the negotiations of the sourcing event, to the point where the business is being awarded to one or more Suppliers.
The Contract Creation to Spend Compliance life cycle handles the process of authoring contracts based on finalized negotiations from the previous life cycle and establishing spending rules for downstream activities in the receipt to requisitions lifecycle.
The Requisition to Receipt lifecycle refers to the entire self-service Procurement process, which allows users to shop via Catalog for Goods & Services, raise Requisitions, and ultimately generate purchase orders based on those requisitions.
The process concludes with Receiving Invoice to Payment lifecycle, which occurs in the Oracle Financial Module. Once the Goods & Services are received, the matching of Supplier Invoices against Purchase Orders is triggered. The Invoice is then validated. And then from there, the lifecycle encompasses the financial tasks, which allow the handling of Prepayments, Discounts, Audits, Disputes, and Approvals and the scheduling of payment close.
That’s it for today:) If you are not sure what to read next, here is the next article for you:
I am an Oracle Logistics Consultant with more than 7 years of experience. I help clients to understand software capabilities and to analyze business needs. My main goal is to recommend solutions and ultimately guide through all phases of Oracle Cloud Applications. I am also inspired to write about life, improvement, and personal growth.
