Oracle iProcurement: P-CardFunctional Setup

An Oracle White PaperAugust 2000Revised October 2002

1Oracle iProcurement: P-CardFunctional Setup

ABSTRACTThe Oracle iProcurement (IP) product enables corporations to acquire goods andservices through the Internet. A procurement card (P-Card) is a corporate creditcard issued to an employee to purchase items directly from a supplier.

P-Card orders are approved and transmitted to the supplier like any other order.When you order an item, the Billing page (or Order Information page, if you areusing Power Checkout) lets you select a P-Card number if you have one. P-Cards must be set up for each employee. You cannot enter a number yourself. Ifa P-Card is set up for you, you will see your P-Card number in the pull-down P-Card Number menu on the Billing page (or Order Information page) when youplace an order.

CONTENTS1) Oracle Application Modules Needed for P-Card Functionality

2) Supplier Setup

3) P-Card Program Setup

4) Credit Card Setup

5) Requisition Creation in iProcurement Using P-Card

6) P-Card Validation

7) Encumbrance and Receiving for P-Card transactions.

8) Features included in 10.7, 11.0.3 and 11i

9) Known Issues and Resolutions

Oracle Application Modules Needed for P-Card FunctionalityYou will need to implement a combination of several Oracle Applicationsmodules (e.g. Oracle Purchasing, Accounts Payable, General Ledger, etc.).iProcurement is the core module of the procurement process. For P-Cardpurchase orders, the Invoice Match option on the Shipment form should bedisabled with a Null value. P-Card purchase orders cannot be matched toinvoices or receipts. Make sure to set up Suppliers as P-Card enabled suppliers.

2Supplier SetupSet up your supplier and P-Card enabled suppliers sites. The P-Card check boxthat enables P-Card use appears in the core Purchasing application under SupplyBase Suppliers. Select a supplier site by clicking the Site button in the lowerright hand corner of the Supplier screen. The P-Card checkbox appears in theGeneral region on the supplier site screen.

Fig. 1: Supplier Setup

3Fig. 2: P-Card Supplier Site Setup

P-Card Program SetupSet up your supplier card program, profile, code sets and cards as describedbelow. In the following P-Card examples, employee name Nag Dasari(NDASARI) is the buyer.

1. Card Brand: Oracle Express Expiration Date: 10-June-XXXX Requisition Transaction Limit: $1000.00Card number: 3997-4567-1111-3212

Card Brand: Oracle ExpressExpiration Date: 10-Aug-XXXXRequisition Transaction Limit: $5000.00Card number: 3123-4561-2222-7892

Credit Card Setup1. In the Credit Card Code Sets window, create credit card code sets. Enter

card codes, such as Standard Industry Classification (SIC) codes, orMerchant Category Codes (MCC). Assign a default GL account to a cardcode.

4Fig 3: Credit Card Setup

Fig 4: P-Card association withEmployee and Supplier and setting up ofMaximum and Minimum amount transactions

52. In the Credit Card Programs window, define your credit card program,including the card issuer, card type, and credit card code set. In thiswindow you can also specify transaction statuses for which you will notcreate invoice.

3. In the Credit Card GL Sets window, define GL account sets. A GL accountset is a list of values that cardholders can use to change accounts duringtransaction verification.

4. In the Credit Card Profiles window, define credit card profiles that youassign to credit cards. Attributes of a credit card profile include credit cardprogram, GL account set, default GL account, exception clearing account,employee verification options, and manager approval options. In additionyou can record restrictions for credit card codes.

Fig 5: Setup of Credit Card Profiles

5. In the Credit Cards window, assign a card to a cardholder and assign a creditcard profile to the card.

6. Set up the Credit Card Transaction Employee Workflow.

7. Set up the Credit Card Transaction Manager Workflow.

8. In the Users window, assign a Credit Cards responsibility and the Workflowresponsibility to employees.

6There are four levels of the Credit Cards responsibility that you can definefor employees:

1. Credit Cards - Assign this responsibility for employees that should haveaccess to records for one or more employees. The securing attribute for theseeded Credit Cards responsibility is ICX_HR_PERSON_ID. To allow aWeb user the ability to verify open credit card transactions and to review acredit card transaction history for more than one employee, define anadditional securing attribute value (ICX_HR_PERSON_ID).

2. Credit Cards (Card Profile Administrator) - Assign this responsibility forthe employee that is the Administrator in the Credit Card Profiles window.This responsibility has access to all records for a Credit Card Profile.Attention: To assign this responsibility, you must first define the employeename for Administrator in the Credit Card Profiles window. You must alsodefine the Securing Attribute in the Users window toAP_CARD_PROFILE_ADMIN_ID. You then assign the EMPLOYEE_IDfor the profile administrator as the Securing Attribute Value.

3. Credit Cards (Program Administrator) - Assign this responsibility for theemployee that is the Administrator in the Credit Card Programs window.This responsibility has access to all records for a Credit Card Program.Attention: To assign this responsibility, you must first define the employeename for Administrator in the Credit Card Programs window. You must alsodefine the Securing Attribute in the Users window toAP_CARD_PROGRAM_ADMIN_ID. You then assign the EMPLOYEE_IDfor the program administrator as the Securing Attribute Value.

Verify Open Transaction. Use to update the status, cost center, account, anddescription of a transaction. You can also split a transaction.

View Transaction History - Use to review a transaction history. The seededWorkflow responsibility includes the following functions:

4. View Notifications - View notifications sent by Workflow.View Progress: View the progress of the workflow process for a selecteddocument. The securing attribute for the seeded Workflow responsibility isICX_HR_PERSON_ID.

7Creating a Requisition using P-Card in iProcurement (SSP 5)

Oracle Self-Service Purchasing automatically flags shopping cart lines forProcurement Card (P-Card) payment and defaults in the P-Card numberdepending on requester and supplier profiles. After an internal order hasbeen created and approved, a P-Card order is generated and transmitted tothe supplier. The supplier then transmits P-Card information to the cardissuer who, in turn, sends a consolidated statement comprised of transactiondata to Accounts Payable.

Fig 6: iProcurement (SSP 5) Homepage

8Billing Information of P-Card

Make sure the drop down list shows the last 4-digits of the P-Cardassociated to the employee. Oracle Self-Service Purchasing allows the userto optionally specify a status of Taxable or Tax-Exempt (see fig. 8) for therequested item (overriding the system-determined default value). The statusindicated on the requesters order line is carried forward to the purchasingdocument that is created from the requesters order.

Fig 7: Billing Information showingP-Card being billed for thecorresponding transaction

9Validation

The following screen shows the warning when the transaction exceeds theamount limit associated with the P-Card.

Fig 8: Validation of the amount limit for P-Card transaction

Encumbrance and Receiving for P-Card transactions

The procurement card information itself is transmitted to the supplierthrough eCommerce Gateway, through the outbound purchase ordertransaction. Upon receiving the purchase order, the supplier transmits theprocurement card information to the procurement card issuer (for example, abank). The credit card issuer then sends transaction files back to OraclePayables, which automatically generates accounting distributions andcreates invoices to pay the issuer.If a supplier rejects a procurement card order, the buyer can notify therequester of the rejection. The buyer can cancel the purchase order and askthe requester to resubmit the requisition, or resend the purchase order usinga different form of payment.

10

Procurement card purchase orders and releases can be created only fromrequisition lines in iProcurement. To use procurement card purchase ordersor releases in Purchasing, you must set up procurement card functionality inboth iProcurement and Payables.

Procurement card purchase orders:Cannot be used with encumbrance accounting.Can be used for items with a Destination Type of Expense only.Cannot be used for documents that contain a Project number.Can be used for standard purchase orders or releases only.Are not available for invoice matching or invoice creation.Do not accrue on receipt.

ReceivingYou receive a procurement card order like any other. However,procurement card items do not accrue upon receipt. Payment andaccounting for procurement card orders are already handled inPayables, which imports the credit card transaction files from the creditcard issuer. If you accrue upon receipt, Purchasing accrues uponreceipt all items except procurement card items. You cannot change theAccrue at Receipt check box in the Shipments window for procurementcard purchase orders or releases.Similarly, at periodend, Purchasing does not accrue or roll overprocurement card orders to General Ledger.

InvoicingSince invoices for procurement card purchase orders are created throughcredit card transaction files that are imported from the credit card issuer intoPayables, note the following:Procurement card purchase orders are not available for invoice matching inPayables.Procurement card shipment lines are automatically closed after approval ifyou use the TwoWay match approval level. (If you use ThreeWay orFourWay match approval levels, you can still receive or inspect against theshipment.)Payment on Receipt does not generate invoices automatically forprocurement card orders, even if the supplier is set up as a Pay on Receiptsite in the Supplier Sites window. A supplier site can be both a Pay onReceipt site and a Procurement Card Site. However, if the supplier site isa Pay on Receipt site, invoices will be generated automatically for all ordersreceived from that supplier site when you run Payment on Receipt, exceptthose that include procurement card information.

Advance Shipment Notices (ASNs) that contain billing information(sometimes known as Advance Shipment and Billing Notices, or ASBNs), ifthey also contain procurement card information, are not automaticallyconverted into invoices as they normally would be upon receipt.

11

Features included in 10.7, 11.0.3 and 11i : Features 10.7 11 11i User Preferences Available Available AvailableChanging your password -- Available AvailableDirect sign-on -- Available AvailableNon-catalog requests Available Available AvailablePersonal Favorites List Available Available AvailableCorporate/Public shoppingLists Available Available Available

Special Item Information Available Available AvailableSaving Shopping Carts Available Available AvailablePower Checkout Available Available AvailableExpress Checkout Available Available AvailableRegular Checkout Available Available AvailableCheckout Defaults Available Available AvailableOne-Time address Available Available AvailableDefault Deliver-to location Available Available AvailableInventory ReplenishmentRequests Available Available Available

Procurement Card support (P-Card) -- Available Available

Integration with ProjectAccounting Available Available Available

Integration with ProjectManufacturing -- Available Available

Attachments Available Available AvailableMass Updates Available Available AvailableAccount GenerationWorkflow Integration -- Available Available

Requisition ApprovalWorkflow Available Available Available

Confirm Receipts Workflow Available Available AvailableAutocreating standard POfrom Contracts -- Available Available

Multiple AccountDistributions Available Available Available

12

Approval List Configuration Available Available AvailableFinding Requisitions toApprove Available Available Available

Editing requisitions inapproval queue Available Available Available

Vacation handling/reassigningto-do notifications Available Available Available

Copy Requisition Available Available AvailableRequisition Cancellations Available Available AvailableRequisition resubmit Available Available AvailableRequisition withdraw -- Available AvailableEmergency Requisitions -- Available AvailableRequisition status (Inquiries) Available Available AvailableCentralized Receiving HomePage Available Available Available

Receipts inquiry (history) Available Available AvailableFinding Items to Receive Available Available AvailableReturns and Corrections -- Available AvailableUpload catalogs Available Available AvailableDownload templates Available Available AvailableBuilding Table of Contents Available Available AvailableMapping Categories Available Available AvailableMapping Special Order Available Available AvailableCatalog Search Available Available AvailableComparing Catalog items Available Available AvailableLinkout toSuppliers/Marketplaces Available Available Available

E-Content Manager (Catalogauthoring tool) Available Available Available

Retrieve Forgotten Password -- Available AvailableMulti Byte Language -- Available AvailableSearch Based Punchout Available Available AvailableOU Specific Purchasing Newsand Policies Available Available Available

MLS Compliant Loader -- -- AvailableDynamic Templates forSpreadsheets -- Available Available

13

Suggested Buyer -- -- AvailableHazard Information -- -- AvailableExpress Receiving -- -- AvailableiHelp Integration -- -- AvailableNew Punchout Architecture -- -- AvailableExpress (employee/location)Loader -- -- Available

Global Supervisor -- -- AvailableTransaction Currency -- -- AvailableImproved Search -- -- AvailableExpense Account ExceptionRules -- -- Available

Direct Approve and Reject -- -- AvailableEstimated Tax -- -- AvailableFavorite Charge Accounts -- -- AvailableContract Autosourcing -- -- AvailableGrants Support -- -- AvailableEnhanced Global BuyerDefaulting -- -- Available

Known Issues

In iProcurement, you created a procurement card with a transaction amountfor a specific user. However, when creating a requisition in iProcurementwith the P-Card established in the core application, the requisition submittalprocess never validates against the P-Card limit. A requisition that exceedsthe amount of the P-Card completes without error.

Solution:---------Make sure the profile used for the P-Card has the Time Unit field set toTRANSACTION:A. From the AP Superuser responsibility, navigate to set up credit cards andprocurement card profiles.B. Query the profile attached to your credit card. The maximum amountfield will only be validated on a requisition in Self-Service Purchasing if thevalue is TRANSACTION.C. On the list of values itself, scroll up to find the correct value. On someforms only PERIOD and MONTHLY are displayed. By scrolling up youwill find the other codes. The actual code that performs this validation iscontained within the ReqHeader.java file as follows:

14

String sqlStatement = "SELECT apcl.amount " + "FROM ap_card_profile_limits apcl, " +" ap_cards apc " + "WHERE apcl.profile_id = apc.profile_id" +" ANDapcl.time_unit_lookup_code = TRANSACTION'" + " AND apc.card_id = ?";

1. Entering a Purchase Order in the Purchase Order Entry Form(POXPOEPO), the field P-Card Number is visible and accessible eventhough you do not want to use the Procurement Card functionality. The P-Card Number field is also appearing in the Purchase Order Summary Form(POXPOVPO). This problem will only be encountered using release 11 ofthe applications or higher.

Solution:---------There is a profile option 'PO: Use P-Cards in Purchasing' which exists onlyfor release 11 or higher. When this profile option is set to 'Yes' theProcurement Card functionality will be enabled and the Procurement CardNumber fields will appear on the two forms. Setting this profile option to'No' will ensure that the Procurement Card functionality is disabled and theProcurement Card Number field does not appear on the Purchase OrderEntry and Summary Forms.

2. Can the Supplier/Site for a P-Card enabled PO be changed?

Steps to recreate:-------------------a. Enter a non-catalog requisition with supplier and site.(supplier > site > enabled for p-card)b. Use p-card during checkout.c. Buyer auto-creates from core purchasing and changes the supplierand site (that is not enabled for P-card).d. The p-card field still holds the p-card number even the supplierand site are not enabled for p-card

Trying to change manually the field Error is raised field is protectedagainst update.

Analysis----------Currently for a requisition line with an associated p-card, during the autocreate process, the buyer is able to change the supplier/supplier siteinformation. The Autocreate form restricts the change only to other p-cardenabled supplier/supplier sites (i.e. LOV for the supplier/supplier site fieldshows only p-card enabled supplier/supplier sites). So the p-cardinformation will always apply for the supplier/supplier site on the resultingPO document.There is a problem on the PO Entry form (after the PO gets created) in thatthere is no similar restriction on the supplier/supplier site field. So the buyercan change it to any other supplier/supplier site, and the p-card information

15

remains on the PO even if the newly selected supplier/supplier site is not p-card enabled.

Solution: This bug is addressed and fixed in Procurement Family Pack H(R11i.PRC_PF.H patch #2320032, R11.0.PO.H patch #1618257)

3. When a Credit Card inactive date in the Payables: Credit Cards form ispopulated with a future date, the P-Card information is no longer visiblein the SSP5 billing information.

Solution:---------Fixed in ReqHeader.java 110.65, 115.36, available in ICX Patchset F.(R11.0.PO.F patch #1330514) Bug 1341092

Summary

One of the most important aspects of the Distribution/Supply chain is the abilityto procure goods and services. iProcurement replaces the typical manualprocurement process with a streamlined, decentralized, electronic commerceprocess that can dramatically reduce costs and time involved in doing so. P-Cardfunctionality gives an added advantage for procurement and receiving items withP-Card transactions.

About The Author

Nag Dasari is a Senior Technical Analyst for E-Business Outsourcing Supportwith Oracle Corporation in Orlando, Florida. He has M.S. and B.S. Degrees inComputer Science and Engineering and has over 10 years of software industryexperience in Managing Oracle ERP applications, design/development, QA, andin Supporting Oracle Applications.

Credits

Oracle Purchasing Users Guide. Oracle Payables Users Guide. Oracle Self-Service Purchasing Implementation Manual Oracle Product Management/Development/Support Team who were

instrumental in identifying the issues and releasing fixes.

16

Oracle iProcurement: P-Card Functional SetupAugust 2000Updated: August 2002Author: Nag DasariContributing Authors: n/aCopyright Oracle Corporation 2000All Rights Reserved Printed in the U.S.A.

This document is provided for informational purposesonly and the information herein is subject to changewithout notice. Please report any errors herein toOracle Corporation. Oracle Corporation does notprovide any warranties covering and specificallydisclaims any liability in connection with this document.

Oracle is a registered trademark of Oracle Corporation.

Oracle CorporationWorld Headquarters500 Oracle ParkwayRedwood Shores, CA 94065U.S.A.

Worldwide Inquiries:650.506.7000Fax 650.506.7200

Copyright Oracle Corporation 2000All Rights Reserved

Fig. 1: Supplier SetupFig. 2: P-Card Supplier Site SetupExpiration Date: 10-June-XXXXFig 3: Credit Card Setup

Fig 4: P-Card association withEmployee and Supplier and setting up ofMaximum and Minimum amount transactions

Fig 5: Setup of Credit Card ProfilesFig 6: iProcurement (SSP 5) Homepage

Billing Information of P-CardFig 7: Billing Information showingP-Card being billed for thecorresponding transaction