Procurement Process Overview

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procurement is an important part of the company's supply chain management. It works with other components to supplement inventory, meet customer requirements, and help control external processing. The manufacturing and inventory departments operate on the basis of the quantity, quality, and delivery time of the purchased goods. Procurement processes all the purchase activities within a company and purchases related items, materials and services to meet the company's production and sales needs. In the procurement management system and the accounts payable management system, the system user is the buyer and the payer, that is, the buyer, and the supplier is the provider of the goods or services, that is, the seller. Procurement Process
the procurement management system should review all procurement documents before processing them. Based on the obtained accounting information about the application and purchase order, the system sends the purchase order to the supplier, the supplier responds according to the purchase order, and sends the invoice for the provision of goods or services to the payable management system. If the goods accrual is set to the liability when the goods are received, the system will send the corresponding goods accrual to the general ledger management system during the accounting period; if the accrued items of goods and services are set to accrued liabilities at the end of the period, the system will send the relevant items to the general ledger management system at the end of the period. Any supplier set up in the procurement management system can be shared with the supplier in the payable management system.
the procurement process in the business process from procurement to payment mainly refers to the procurement activities from the request for goods and services to the final acceptance of them, it mainly includes five processes: Demand, source, order, accept and payment. Requirement refers to the request for generating and managing goods in the procurement process. Source refers to the design of a series of business activities in the procurement source supplementary process, and the search, validation and selection of appropriate suppliers that can provide the required goods and services. The order processing process in procurement refers to the process in which the buyer issues the purchase order and the supplier executes the purchase order. The acceptance process can confirm whether the purchase order has been properly executed. In the case of physical orders, goods are mainly received, inspected, and delivered to inventory locations or other designated locations. In the case of service orders, the requester or approver sends a notice, this indicates that the service has been executed according to the protocol. The payment process includes activities that have segments with the purchased goods and services.
throughout the procurement process, Oracle can arrange transactions based on the approval structure. The approval permission is granted by the amount, expense account, material type and location. The approval documents can be reviewed and approved online. The system automatically displays the approval status of the transaction processing and generates the allocated account.