Use Case: Procure to Pay

In the procure-to-pay process, a product manufacturer orders parts from a parts supplier, which fulfills the order and receives payment.

Overview

For details about the order to cash use case, see Use Case: Order to Cash.

Step 1. Place an order	Step 2. Receive updates	Step 3. Shipment and invoice	Step 4. Send payment
Post an order file to File Server for new parts Send messages according to the B2B configuration	Send messages to the parts manufacturer according to the B2B configuration	Send messages to the parts manufacturer about the shipment and invoice according to the B2B configuration	Pay for the order

 

Step 1. Place an order

Your company is a product manufacturer that needs to order parts from a parts supplier.

1. You upload an EDI file to File Server.

2. Integrations created by you and the retailer send the following messages over the AS4 protocol according to the B2B configuration:

   Sender	Message	Reason
   Your company	850 Purchase Order	Identify the items to order
   Parts manufacturer	(After verifying the file and sender) MDN (Message Disposition Notification)	Confirm receipt of the file

 

Step 2. Receive updates while the order is processed

1. A receive integration, which was created based on the parts manufacturer's configuration, detects the uploaded file.

2. The receive integration performs the following tasks:

   1. Identifies the parts manufacturer and the agreement to process the 850 Purchase Order.

   2. Parses the 850 Purchase Order to perform validations.

   3. Sends the following message over the AS4 protocol according to the B2B configuration:

      Sender	Message	Reason
      Parts manufacturer	997 Functional Acknowledgment	Informs the parts manufacturer whether the validation was successful or experienced an error

3. The agreement runs a back-end integration, which was configured for the agreement. The integration performs the following tasks:

   1. Translates the file using the B2B schema.

   2. Converts the file into the XML format required by Oracle Cloud ERP and uses the Oracle ERP Cloud Adapter to write the purchase order for the incoming 850 Purchase Order.

   3. Receives the EDI order file and converts it the format that the ERP system requires.

4. An integration sends the following message over the AS4 protocol according to the B2B configuration:

   Sender	Message	Reason
   Parts manufacturer	(If the file meets all requirements and your company can fulfill the order) 855 Purchase Order Acknowledgment	Accept the purchase order

 

Step 3. Shipment and invoice

1. The parts manufacturer ships the order to you.

2. An integrations send the following messages over the AS4 protocol according to the B2B configuration:

   Sender	Message	Reason
   Your company	997 Acknowledgment	Confirm receipt of the 855
   Parts manufacturer	856 Advance Ship Notice	Provide the shipment contents and logistics
   Your company	997 Acknowledgment	Confirm receipt of the 856
   Parts manufacturer	810 Invoice	Send an invoice for the order
   Your company	997 Acknowledgment	Confirm receipt of the 810

    

Step 4. Send payment

You pay the retail company for the order.