Oracle Fusion Procure to Pay – Setup and Cycle Testing (Part 1: Procurement)

 In this article, we configure an Oracle Fusion Procurement Business Unit and validate the Procure-to-Pay (P2P) process from requisition creation through goods receiving.

This walkthrough follows Oracle Modern Best Practices for the Requisition-to-Receipt lifecycle and focuses exclusively on Procurement functional setup and transaction testing.

Summary – Topics Covered

• Enable Procurement Offering
• Location Setup
• Business Unit Configuration
• Assign Business Unit Business Functions
• Requisitioning Business Function Setup
• Procurement Business Function Setup
• Document Numbering Configuration
• Receiving Parameters Setup
• Purchase Order Approval Configuration
• Buyer Setup
• Requisition Creation
• Purchase Order Creation and Approval
• Goods Receiving
• Payables Invoice Auto Generation

 

For Accounts Payable setup and testing (process activities 7 and 8), please refer to Part2:

All configuration and setup activities in this article are performed from the Setup and Maintenance page.

Enable Offering and Opt-In Features

From Setup and Maintenance, navigate to Offerings.
Enabling this offering activates all Procurement-related functional areas, including Requisitioning, Purchasing, Receiving, and Supplier Management.

This is a mandatory step, as Procurement setup tasks and transactional pages are not available unless the offering is enabled.

 

 

Manage Locations

Search for the task Manage Locations.

Click Create, then enter the Location Name and Location Code, and specify the location details.

Locations are used extensively in Procurement for ship-to, deliver-to, and receiving activities, so it is important to define them correctly.

Save and submit the location after validation.

 

Manage Business Unit

Under Procurement Functional Area

From Organization Structures, select the task Manage Business Unit.

Enter a Business Unit (BU) name, assign the location created earlier, and select COMMON as the Reference Data Set.

Reference Data Sets allow you to control setup data access and sharing. Multiple reference data sets can be configured depending on business needs.

Click Save and Close.

This Business Unit serves as the core organizational entity and will be used for all Procurement and Accounts Payable setups and transactions.

 

Assign Business Unit Business Function

Next, assign business functions to the Business Unit.
This step enables functional capabilities on the BU, allowing it to be used for Procurement, Payables, Receivables, and other modules.

Navigate to the task Assign Business Unit Business Function.

Select the scope, choose Select and Add, and select DXB Support.
Click Apply and Go to Task.

 

Search and select the Business Unit, then click Save and Close.

 

This environment is a test server, so all business functions are selected for testing purposes.
However, the highlighted functions are specifically required for Procurement and Payables.

For financial reporting, assign the Legal Entity and Primary Ledger to which this BU belongs.

If the checkbox below Legal Entity is unselected, it means the BU can be associated with multiple legal entities.
This represents a different business scenario and is not covered in this article.

Click Save and Close.

 

 

Predefined Setup Values

For the following tasks, Oracle provides predefined standard values that are sufficient for testing:

• Manage Units of Measure
• Manage FOB Lookup
• Manage Freight Terms Lookup
• Manage Carriers

In real implementation scenarios, these values can be customized based on specific business requirements.

Configure Requisitioning Business Function

Navigate to Procurement Foundation and select the task Configure Requisitioning Business Function

Set default values such as:

• Default Deliver to Organization
• Default Procurement Business Unit
• Default Ship-to Location

These defaults streamline requisition creation and ensure consistency for end users.

Click Save and Close.

 

Configuring Procurement Business Function

Navigate to the task Configure Procurement Business Function.

For this test scenario, minimal required options are configured. i.e Default Payment Terms, shipping method, Freight Term, Inventory Organization, Line Type, currency etc.

All these will be defaulted on purchasing documents.

In production environments, additional options may be enabled based on approval controls, document management needs, and business policies.

For detailed explanations of each option, please refer to Oracle documentation.

 

For document types, default values are retained in this setup.
These values can be customized if specific business requirements exist

Document Layout, Contract Term Template or change order template, these are rtf template and can be customized and setup here.

 

 

Manage Procurement Document Numbering

Navigate to the task Manage Procurement Document Numbering.

For Purchase Orders, document numbering is maintained at the Legal Entity level, as Purchase Orders are global documents.

The default numbering sequence is used for this test.

 

For Requisitions, numbering is configured at the Requisitioning Business Unit level, Lets create one as following.

 

Manage Receiving Parameters

Navigate to the task Manage Receiving Parameters.

Configure receiving controls for the same Business Unit.
These parameters determine how receipts are processed and directly impact downstream processes such as Payable invoice creation.

This setup is crucial to successfully receiving the Purchase Order

For further details on each parameter, refer to Oracle documentation.

 

 

Procurement Approvals

Requisition approval and Purchase Order approval are configured in a similar manner but require separate setups.

As both follow the same approach, requisition approvals are skipped in this article.
Requisition approvals can be configured using the task Manage Requisition Approvals.

 

Purchasing Order Approval

From Setup and Maintenance, under the Procurement product area, navigate to Approval Management and select:

Task: Manage Purchasing Document Approvals

This is the Purchasing Document landing page, which contains three approval stages.
In this article, configuration is performed at the Terms stage.

Click Edit Rules.

 

The rule edit page consists of three main components:

• Rules – Defines the rule name and purpose
• Conditions – Determines when the rule is triggered (e.g., BU, amount, supplier)
• Actions – Specifies approval behaviour such as auto-approval, approval groups, or supervisory hierarchy

Example approval logic:

• Amount ≤ 500 → Auto-approved
• Amount > 500 and ≤ 1000 → Approval Group
• Amount > 1000 → Worker and Worker’s Manager (Supervisory Hierarchy)

Below screenshots show some existing configured approval rules.

 

 

Test Approval Rule Setup

For testing, the following rule is configured:

• Rule Name: Approval Rule for Testing
• Condition: Procurement BU = DXB Support
• Action: Specific Manager (Procurement Manager as Calvin Roth)

Relevant screenshots show the rule, condition, and action configuration.

 

Rule:

 

Condition:

Action

 

 

Setting up Buyer

Next, a buyer is configured.
A user is assigned as a Buyer, and access is granted to Calvin Roth, who is configured as the Purchase Order approver.

Steps performed:

• Setup user and assign roles (Employee, Buyer)
• Create employee record
• Grant Business Data Access
• Create Buyer using Manage Procurement Agents

The test user is set up as a buyer, and Calvin Roth is assigned so he can approve the test Purchase Order.

Access to Other Agenet’s Documents is set to Full, this is set for testing purpose, for production configuration, you must re conder. You can see I have set to none for the Manager Compliance Check list. In this case, this buyer will have only access to his own compliance check lists.

The same I have set to full for user Calvin Roth.

 

 

Test Scenario

Requisition

Set user preferences such as default Requisitioning BU and delivery location.

 

This is the Self Service Procurement home page.
From the left side, click the three dots (…) and select Enter Requisition Line.

 

 

Both inventory-based and expense-based requisitions can be created.
Expense requisitions are typically used for non-stock items such as laptops, stationery, or services.

For this test, an expense-based requisition is created manually for a laptop.

Select appropriate values and click Create and Continue.

 

 

Go to the Cart, review requisition lines and summary, and submit the requisition for approval.

 

 

The requisition is approved and becomes available on the Process Requisitions page.

 

 

Process Requisition

Navigate to Purchasing from the Procurement menu.

On the Purchasing home page, select Process Requisitions (New) – Redwood Page.

 

 

Select Unprocessed Lines,

And requisition line and choose the Stage option.

The Stage functionality, introduced in Oracle Fusion, moves requisitions to a staging area before document creation.

 

 

The Staged Document page appears.
Select the document style as Purchase Order.

This test covers a simple Requisition-to-PO scenario.

I have assigned one pre-defined supplier to our DXB Stores BU

Review and click Save.

 

 

Review the actions and lines, then click Publish.

 

The Purchase Order has been created.

 

 

The requisition header and line status changes to Order Processing.

 

Review the Purchase Order

Navigate to Purchasing from the Procurement tab.

From the Purchasing home page, select Purchase Orders (New) – Redwood Page.

This page provides enhanced search and summary information for Purchase Orders.

 

 

Click Edit, review the Purchase Order, and submit it for approval.

 

PO is not showing Pending for Approval status

 

 

Purchase Order Approval

Calvin Roth receives the approval notification and approves the Purchase Order.

Sorry, I missed to show Calvin Roth as current login user while I took screenshot and later this notification was closed.

 

After approval, the Purchase Order status changes to Open.

 

 

Receiving

Navigate to My Receipts (New) – Redwood Page.

Review the Purchase Order and click Receive Now.

Choose Receive with Details if you need to modify quantities or enter additional shipping information or attachments.

 

Review the receipt details and click Create Receipt.

 

The receipt is generated successfully.

Navigate back to My Receipts and confirm that Receipt 40002 is created.

 

 

Send Pay on Receipt

Submit the Send Pay on Receipt process.

This program is usually scheduled automatically in production environments and does not typically require manual execution.

The process uses the Evaluated Receipt Settlement (ERS) transaction source to create Accounts Payable invoices.

 

 

Select Transaction Source = Evaluated Receipt Settlement.

And Submit.

 

You will observe that additional related processes are triggered automatically.

Once all processes complete successfully, review the Import Payables Invoices Report to confirm invoice creation.

 

 

Invoice Number: ERS-40002-709579 

We will now proceed to Accounts Payable processing.
Please refer to Part 2 for further steps.

Conclusion

This article demonstrated the end-to-end Procurement setup and testing in Oracle Fusion, following Oracle Modern Best Practices and utilizing Redwood user interfaces.

It covered configuration, approvals, and transactional validation from requisition creation through ERS invoice generation.
Accounts Payable setup and payment processing are addressed in Part 2.

Please share your comments, feedback, or suggestions.