R12: How to Setup and Test Procurement Card Data

and Troubleshoot Issues

1. What is Procurement Card

You can streamline your procure-to-pay process by implementing a procurement card

program in which your employees purchase items directly from suppliers using a
procurement card. The procurement card issuer then sends transaction files directly to you
(the employer). You can import procurement card transaction files from your card issuer
directly into Payables. Then, you can automatically generate transaction accounting
distributions and create invoices to pay the card issuer.

2. What are the types of Procurement Card (Card Program window)

Procurement
For employee procurement card

Supplier
For supplier procurement card – This is not documented anywhere and you can refer to the
following bug:

Bug 10238210 : SUPPLIER HOLDING P-CARD WITH CARD TYPE 'SUPPLIER' UNABLE
TO RECONCILE IN STD WAY

The Travel is for Oracle Internet Expenses only. When the Card Program is defined as
Travel, you need to use Credit Card programs to process transactions.

3. Steps to implement Procurement Card

Step 1: Set up Payables and Self-Service Web Applications credit card programs.

Set up credit card programs with a card type of Procurement for employees to use
procurement cards to purchase items directly from suppliers as follows:
a. Use Payables responsibility.
b. Navigate to AP/setup/credit cards/card programs
c. Define Pcard card program. Make sure to specify, Card Type = Procurement or
Supplier
Note Procurement is for Employee pcard and Supplier type is for Supplier pcard
d. Card Issuer = Pcard Supplier.
e. Card issuer Site = Pcard Supplier Site
f. Specify your Card Code Set.
 g. Specify options under ‘Do not pay if status’

Figure 1: Screenshot of Step 1

Step 2: Import procurement card transactions.

The card issuer sends you a file with the procurement card transactions and charges. You
load this data into the AP_EXPENSE_FEED_LINES table.
The following is a sample script to load pcard transaction data.
NOTE: There are many different ways to execute the script. The script could be copied into
an editor and saved as a file.  The file would then be ftp’d to your instance and executed via
sqlplus.

You can also use SQL*Loader to load procurement card transaction information into the
AP_EXPENSE_FEED_LINES interface table.

Sample script begins below this line

-----------------------------
set verify off
accept g_amount prompt 'Enter the amount:'
declare
v_amount number(10):=&g_amount;
v_max_feed number(10);
begin
select max(feed_line_id) into v_max_feed
from ap_expense_feed_lines_all;
v_max_feed:=v_max_feed + 1;
for i in 1..5 loop
insert into ap_expense_feed_lines_all
( CARD_PROGRAM_ID,
CARD_NUMBER,
card_id,
FEED_LINE_ID,
REFERENCE_NUMBER,
AMOUNT,
POSTED_DATE,
CREATE_DISTRIBUTION_FLAG,
MERCHANT_NAME,
MERCHANT_NUMBER,
CARD_CODE_VALUE,
LAST_UPDATE_DATE,
LAST_UPDATED_BY,
LAST_UPDATE_LOGIN,
CREATION_DATE,
CREATED_BY,org_id )
values(10486,'1011 2022 3033
4044',13478,v_max_feed,v_max_feed,v_amount,sysdate-1,'Y','GE
Capital',1001,1000,sysdate-1,-1,-1,sysdate-1,-1,204);
v_max_feed:=v_max_feed + 1;
end loop;
commit;

end;
----------------
Script ends above this line

Note:
The following values in the sql script above MUST be changed:
I. Value for CARD_PROGRAM_ID = Use the card_program_id from the newly
created 'pcard lucy' (for the test case the value used was '10486')
Figure 3: Screenshots of checking card_program_id

II. Value for card_number and card_id:

Assign the card number (Example: 1111 2222 3333 4444) to an employee

NOTE: You need to populate card_id in R12 where 11i does not have to.
a. Use Payables responsibility.
 b. Navigate to AP/Credit cards/Credit cards
c. Assign card number = 1011 2022 3033 4044 to an employee “emp lucy”
(preferably a new employee, who does not have a card assigned).

Figure 4: Screenshot of checking card_id

While defining credit cards, when a card program whose card type is Supplier,
employee fields will get grayed out and employee details are not mandatory for such
cards.

III. Value for MERCHANT_NAME and MERCHANT_NUMBER

a. Use Payables responsibility.

b. Navigate to AP/Suppliers/entry
c. Create a new Pcard Supplier/Supplier Site or find an existing supplier/supplier
site

We use GE Capital as the Pcard Supplier (Supplier_number=1001) in the script.

IV. Value for CARD_CODE_VALUE

For the test case the value used 1000, as a Code Set 'GE Capital MasterCard
Purchasing Card' is defined where Value 1000 maps to Account =1500 even though
in the case of the test setup above it was not enable 'Build Acct from Code' so the
code set will not be used in creating the distributions.  In other test cases, use any
value from the code set that is attached to the profile.

You need to create new Profile for the Card Program created above.
Navigate to AP/Setup/Credit Cards/Procurement Card/Profiles
Figure 6: Screenshot of checking card_code_value

V. Value for org_id.

The Pcard setup is specific to an organization (org) or operating unit. In AP and OIE,
the terms organization and operating unit can be used interchangeably. Make a note
of the org to be setup for Pcard functionality. All associated responsibilities should
be pointing to the same organization (org_id). In AP and OIE  the responsibilities are
tied to an organization via the profile option 'MO: Operating Unit'. This profile
option is normally set at the responsibility level.

There are various ways to get org_id. One example is to query card program on
Credit Cards form:
Figure 7: Screenshot of checking org_id by query card program on Credit Cards form

Step 3: Validate imported procurement card transactions.

Submit the Procurement Card Transactions Validation program. This program creates
distribution records in the AP_EXPENSE_FEED_DISTS_ALL table, for transactions where the
CREATE_DISTRIBUTION_FLAG is Y. Otherwise, you can create distribution records
manually in the Transaction Distributions window. This program also identifies transaction
exceptions, such as card numbers that are undefined, and builds the default GL Accounts for
the transactions.
Figure 8: Screenshot of Procurement Card Transactions Validation Program

Note for Supplier pcard:

 Employee id will not be overwritten for supplier card transactions.
 If employee_id is populated in ap_expense_feed_lines for a supplier card transaction,
then employee id will be validated and transaction would be rejected if the
employee id is not valid.
 If employee_id is not populated in ap_expense_feed_lines for a supplier card
transaction and if employee verification and/or manager approval is setup for the
card profile, then the transaction would be rejected indicating that a valid employee
id is mandatory when employee verification and/or manager approval is enabled.

Check Procurement Card Transaction Validation Report for rejections.

Exception Reason Exception Description
------------------------- --------------------------------------------------------------
Cannot determine account An account cannot be determined
Distribution Required A distribution must be created because employee or manager
approval is required
Duplicate Reference Another transaction exists with this reference number
Employee Inactive The Employee is inactive
Employee Not Valid Valid employee ID is required for supplier card transactions
when workflow notifications are enabled.
Employee Required Employee ID is required for supplier card transactions when
workflow notifications are enabled.
Invalid Card Code The merchant category code is not recognized for this card
program
Invalid Card ID The Credit Card ID does not match a defined credit card
Invalid Card Number The Credit Card Number does not match a defined credit card
Invalid Currency The Transaction Currency is not recognized
Invalid Post Currency The Posting Currency is not recognized

Step 4: Employee verification.

Submit the Procurement Card Transactions Verification Process. This executes the AP
Procurement Card Employee Verification Workflow as you have defined it. If verification is
required, an employee can verify transactions directly from a workflow notification. The
employee can also use Self-Service Web Applications to verify transactions. If verification is
not required, an employee will receive a notification indicating that transactions were
posted to the employee's card account.

Step 5: Manager approval or notification.

Submit the Procurement Card Transactions Approval Process. This executes the AP
Procurement Card Manager Approval Transaction Workflow as you have defined it. If
approval is required from the manager, a manager can approve an employee's procurement
card transactions directly from a workflow notification. If approval is not required, a
manager will receive a notification that lists all procurement card transactions incurred by
the manager's direct reports.

Step 6: Adjust transaction distributions.

If card program administrators need to adjust or create transaction distributions, use the
Procurement Card Transactions window.

Step 7: Create invoices.

You submit the Create Procurement Card Issuer Invoice program to move the transaction
data from the AP_EXPENSE_FEED_DISTS_ALL table to the AP_INVOICES_INTERFACE and
AP_INVOICE_LINES_INTERFACE tables.You can summarize transactions by GL Account.

Check the output of the concurrent program to see the invoice details.

If you want to check the data in the interface tables for the data transferred to them, please
use ap_invoices_interface.source=’PCARD’.
The alternative way to query data in the interface table is:
Navigate to Payables->Invoices->Entry->Open Interface Invoices
Query the Source field with ‘PCARD’.

You submit the Payables Open Interface Import Program to create invoices in Payables from
the invoice data in the Payables Open Interface tables. You need to select the ‘Procurement
Cards’ as the parameter Source. View the output file to see the invoice details.

4. Some information:
 Procurement Cards->Procurement Card Verify Transactions Employee can see and
verify the transactions only after Procurement Card Transactions Validation
program is run.
 As a workaround, user can always use Payables->Credit Cards->Procurement Card
Transactions to manually verify the status and create distributions.
 To verify if invoice is created for a specific transaction:

Select feed_line_id,feed_distribution_id,invoiced_flag
From ap_expense_feed_dists
Where feed_line_id=&feed_line_id;
 Invoiced_flag should be Y when an invoice is created in AP.

 When setting Supplier pcard, the employee field is not mandatory. You may use the
same script as posted above to test it. From latest test on apwcvalb.pls
120.9.12010000.7, you must populate employee_id in ap_expense_feed_lines,
otherwise it will be rejected by Employee Inactive.

 At the time when doing testing, there is limited customers are using Supplier
Procurement Card and no customer reported this issue.

 Tables included in this function:

AP_EXPENSE_FEED_LINES stores card transactions from card provider
AP_EXPENSE_FEED_DISTS Procurement Card Transactions Validation program
creates distribution records in the AP_EXPENSE_FEED_DISTS_ALL table, for
transactions where the CREATE_DISTRIBUTION_FLAG is Y.
AP_CARDS_ALL stores the card assignment information
AP_CARD_PROGRAMS_ALL stores the card program information
IBY_CREDITCARD stores the card number information
AP_INVOICES_INTERFACE AND AP_INVOICE_LINES_INTERFACE Create
Procurement Card Issuer Invoice program to move the transaction data from the
AP_EXPENSE_FEED_DISTS_ALL table to the AP_INVOICES_INTERFACE and
AP_INVOICE_LINES_INTERFACE tables.

5. Further Reading

 Oracle Payables Implementation Guide

http://docs.oracle.com/cd/B53825_08/current/acrobat/121apig.pdf
 Oracle Payables User’s Guide:
http://docs.oracle.com/cd/B53825_08/current/acrobat/121aprg.pdf
 Oracle Payables Reference Guide:
http://docs.oracle.com/cd/B53825_08/current/acrobat/121apug.pdf