A procurement card (or P-Card) is a corporate credit card issued to an employee or a supplier P-Card issued against a supplier. The purpose of either the employee or supplier P-Card is to enable the employee to purchase items directly from a supplier. Procurement cards can be assigned to requisitions in iProcurement only. After the requisition is created in iProcurement, a purchase order or release is generated in Purchasing by either the PO Create Documents workflow or by you using AutoCreate, depending on how you've set up Purchasing.
Procurement card purchase orders are approved and transmitted to the supplier like any other purchase order. They are approved through the approval workflows in Purchasing, and you transmit them to the supplier through facsimile, Oracle e-Commerce Gateway, or other method as usual. (The procurement card information itself is transmitted to the supplier through e-Commerce Gateway, through the outbound purchase order transaction.) Upon receiving the purchase order, the supplier transmits the procurement card information to the procurement card issuer (for example, a bank). The credit card issuer then sends transaction files back to Oracle Payables, which automatically generates accounting distributions and creates invoices to pay the issuer.
If a supplier rejects a procurement card order, the buyer can notify the requester of the rejection. The buyer can cancel the purchase order and ask the requester to resubmit the requisition, or re-send the purchase order using a different form of payment.
In Purchasing, you see a procurement card number on a procurement card requisition line in the AutoCreate Documents window (as a hidden field), and in the Purchase Orders, Releases, and Purchase Order Headers windows (if PO: Use P-Cards in Purchasing is set to Yes).
You cannot create a procurement card purchase order or release manually. Purchasing creates a procurement card purchase order or release through the PO Create Documents workflow or the AutoCreate Documents window, depending on your Purchasing setup. See: Workflow Setup Options.
Procurement card purchase orders and releases can be created only from requisition lines in iProcurement. To use procurement card purchase orders or releases in Purchasing, you must set up procurement card functionality in both iProcurement and Payables.
For information on setting up procurement card functionality, see the iProcurement Implementation Manual and the Oracle Payables User's Guide.
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. See: Receiving, below.
Transmit the procurement card number to the supplier through e-Commerce Gateway, through the outbound purchase order transaction. See: Running the EDI Purchase Order Outbound Extract Program.
Requisitions and purchase orders that contain procurement card items are routed through the same approval process as any other document, unless you modify the approval workflow to treat them differently.
After a procurement card purchase order or release is approved, it is automatically closed for invoicing if you use the Two-Way match approval level.
You receive a procurement card order like any other. However, procurement card items do not accrue upon receipt. Payment and accounting for procurement card orders are already handled in Payables, which imports the credit card transaction files from the credit card issuer. If you accrue upon receipt, Purchasing accrues upon receipt all items except procurement card items. You cannot change the Accrue at Receipt check box in the Shipments window for procurement card purchase orders or releases.
Similarly, at period-end, Purchasing does not accrue or roll over procurement card orders to General Ledger.
Since invoices for procurement card purchase orders are created through credit card transaction files that are imported from the credit card issuer into Payables, note the following:
Procurement card purchase orders are not available for invoice matching in Payables.
Procurement card shipment lines are automatically closed after approval if you use the Two-Way match approval level. (If you use Three-Way or Four-Way match approval levels, you can still receive or inspect against the shipment.)
Payment on Receipt does not generate invoices automatically for procurement card orders, even if the supplier is set up as a Pay on Receipt site in the Supplier Sites window. A supplier site can be both a Pay on Receipt site and a Procurement Card Site; however, if the supplier site is a Pay on Receipt site, invoices will be generated automatically for all orders received from that supplier site when you run Payment on Receipt, except those that include procurement card information.
Advance Shipment Notices (ASNs) that contain billing information (sometimes known as Advance Shipment and Billing Notices, or ASBNs), if they also contain procurement card information, are not automatically converted into invoices as they normally would be upon receipt.
See: P-Cards, Oracle iProcurement Implementation Guide.