Oracle Purchasing User`s Guide

Oracle Purchasing User`s Guide
Oracle® Purchasing
User's Guide
Release 12
Part No. B28669-01
December 2006
Oracle Purchasing User's Guide, Release 12
Part No. B28669-01
Copyright © 1996, 2006, Oracle. All rights reserved.
Primary Author: Vic Mitchell
Contributing Author: Manjula Evans, Suman Guha, Rohit.Lobo, Shibhu Nambiar, Kim Powell, Faustina
Setyadi
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Contents
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Preface
1
Setting Up
Overview of Setting Up............................................................................................................. 1-1
Defining Locations.................................................................................................................. 1-17
Defining Buyers...................................................................................................................... 1-19
Defining Approval Groups..................................................................................................... 1-20
Assigning Approval Groups................................................................................................... 1-23
Annotating Purchasing Documents........................................................................................ 1-25
Managing Attachments...................................................................................................... 1-27
Attaching Notes to Purchasing Documents....................................................................... 1-32
Defining Purchasing Options................................................................................................. 1-32
Defining Receiving Options................................................................................................... 1-41
Defining Requisition Templates............................................................................................ 1-45
Purchasing Hazardous Materials............................................................................................ 1-49
Regulation Background..................................................................................................... 1-49
Defining Hazard Classes.................................................................................................... 1-52
Defining UN Numbers....................................................................................................... 1-53
Defining Lookup Codes.......................................................................................................... 1-54
Defining Quality Inspection Codes........................................................................................ 1-56
Line Types in Purchasing Documents.................................................................................... 1-58
Defining Line Types........................................................................................................... 1-61
Purchasing Services ................................................................................................................ 1-64
Defining Document Types...................................................................................................... 1-66
Defining Document Styles...................................................................................................... 1-72
iii
Purchase Order Communication Setup Steps........................................................................ 1-74
Center-Led Procurement Setup............................................................................................... 1-78
Controlling Purchasing Periods.............................................................................................. 1-80
Expense Charge Account Rules............................................................................................... 1-82
Choosing Workflow Options.................................................................................................. 1-83
iProcurement Setup Windows................................................................................................ 1-88
Oracle Services Procurement.................................................................................................. 1-88
Define Job and Category Association..................................................................................... 1-90
2
Approval, Security, and Control
Setting Up Document Approval and Security.......................................................................... 2-1
Position Hierarchies.................................................................................................................. 2-6
Document Security and Access................................................................................................. 2-7
Approval Routing.................................................................................................................... 2-10
Approval Authorization Control............................................................................................ 2-12
Defining Approval Authorization Rules............................................................................ 2-13
Using Approval Assignments............................................................................................ 2-15
Assigning Employees.............................................................................................................. 2-18
The Document Approval Process............................................................................................2-19
Approved Documents and Supply.................................................................................... 2-21
Document Status Checks................................................................................................... 2-21
Document Submission Checks........................................................................................... 2-22
Viewing and Responding to Approval Notifications.........................................................2-29
Submitting a Document for Approval.................................................................................... 2-32
Offline Approvers................................................................................................................... 2-38
Mass Forwarding Documents................................................................................................. 2-39
Document Control Overview.................................................................................................. 2-40
Document Control Options................................................................................................ 2-41
Purchase Order Control Matrices...................................................................................... 2-46
Document Control Applicability Matrix............................................................................ 2-49
Document Control Status Check Matrix............................................................................ 2-51
Document Control Submission Check Matrix....................................................................2-53
Controlling Documents........................................................................................................... 2-57
MassCancel.............................................................................................................................. 2-61
Defining MassCancel......................................................................................................... 2-61
Define MassCancel Listing................................................................................................. 2-65
Running MassCancel......................................................................................................... 2-67
Run MassCancel Listing.....................................................................................................2-68
iv
3
Requisitions
Overview of Requisitions......................................................................................................... 3-1
Requisition Types................................................................................................................ 3-6
Reserving Funds for Requisitions........................................................................................ 3-8
Reviewing Requisitions............................................................................................................ 3-9
Managing Requisitions........................................................................................................ 3-9
Updating Requisitions....................................................................................................... 3-12
Overview of Internal Requisitions......................................................................................... 3-13
Demand for Internal Requisitions...................................................................................... 3-16
Internal Requisition Approvals.......................................................................................... 3-18
Creation of Internal Sales Orders....................................................................................... 3-19
Management of Internal Sales Orders................................................................................ 3-20
Pick Release for Internal Sales Orders................................................................................3-21
Ship Confirmation for Internal Sales Orders...................................................................... 3-21
Management of Internal Requisitions................................................................................ 3-22
Internal Requisitions Processing Summary....................................................................... 3-23
Internal Requisitions Setup Overview............................................................................... 3-24
Minimum Order Management Setup for Internal Requisitions......................................... 3-25
Minimum Shipping Execution Setup for Internal Requisitions......................................... 3-26
Minimum Purchasing Setup for Internal Requisitions.......................................................3-27
Minimum Inventory Setup for Internal Requisitions......................................................... 3-28
Online Processing Automation for Internal Requisitions.................................................. 3-30
Internal Requisitions Example........................................................................................... 3-31
Finding Requisitions............................................................................................................... 3-36
Using the Requisition Headers Summary Window............................................................... 3-39
Using the Requisition Lines Summary Window....................................................................3-40
Using the Requisition Distributions Summary Window...................................................... 3-42
Entering Requisition Preferences........................................................................................... 3-44
Entering Requisition Headers................................................................................................. 3-48
Entering Requisition Lines..................................................................................................... 3-50
Entering Requisition Distributions........................................................................................ 3-57
Using Requisition Templates................................................................................................. 3-59
4
Purchase Orders
Overview of Purchase Orders................................................................................................... 4-1
Purchase Order Types.......................................................................................................... 4-2
Purchase Order Features...................................................................................................... 4-4
Purchase Order Defaulting Rules........................................................................................... 4-10
Finding Purchase Orders......................................................................................................... 4-23
v
Using the Purchase Order Headers Summary Window.................................................... 4-26
Using the Purchase Order Lines Summary Window......................................................... 4-30
Using the Purchase Order Shipments Summary Window................................................. 4-32
Using the Purchase Order Distributions Summary Window.............................................4-35
Entering Purchase Order Preferences..................................................................................... 4-37
Entering Purchase Order Headers...........................................................................................4-40
Entering Purchase Order Lines............................................................................................... 4-46
Entering Purchase Order Price Reference Information.......................................................... 4-50
Entering Purchase Order Reference Document Information................................................. 4-51
Entering Purchase Order Miscellaneous Information........................................................... 4-53
Entering Purchase Agreement Information............................................................................ 4-55
Entering Purchase Order Temporary Labor Information.......................................................4-58
Entering Currency Information.............................................................................................. 4-60
Entering Purchase Order Details Information....................................................................... 4-61
Entering Purchase Order Shipments...................................................................................... 4-67
Entering Purchase Order Receiving Controls......................................................................... 4-71
Entering Purchase Agreement Price Break Information........................................................ 4-73
Entering Purchase Order Distributions.................................................................................. 4-75
Entering Outside Services Information.................................................................................. 4-79
Entering Purchase Order Notification Controls..................................................................... 4-80
Entering and Viewing Purchase Order Acceptances.............................................................. 4-81
Entering Releases.................................................................................................................... 4-83
Entering Release Headers.................................................................................................. 4-83
Entering Release Shipments............................................................................................... 4-86
Entering Release Distributions........................................................................................... 4-92
Automatic Release Generation............................................................................................... 4-95
Copying Purchase Orders....................................................................................................... 4-98
Document Revision Numbering........................................................................................... 4-102
Document Revision Rules................................................................................................ 4-103
Document Reapproval Rules........................................................................................... 4-107
Changing Encumbered Documents...................................................................................... 4-112
Drop Shipments.................................................................................................................... 4-113
Tax Information in Purchasing............................................................................................. 4-115
Viewing Tax Information................................................................................................. 4-116
Procurement Card Purchase Orders and Releases................................................................4-117
5
Supply Base Management
Overview of Sourcing, RFQs, and Quotations......................................................................... 5-1
RFQs and Quotations.......................................................................................................... 5-4
Supplier Item Catalog............................................................................................................... 5-5
vi
Finding Supplier Items........................................................................................................ 5-9
Using the Supplier Item Catalog Tabbed Regions............................................................. 5-13
Entering Order Pad Options (from Requisitions).............................................................. 5-16
Receiving Price/Sales Catalog Information Electronically.....................................................5-18
Setting a Price Tolerance in a Price/Sales Catalog Update................................................. 5-20
Monitoring Price Increases in a Price/Sales Catalog Update.............................................. 5-21
Overview of Automatic Sourcing........................................................................................... 5-24
Setting Up Automatic Sourcing......................................................................................... 5-27
Defining Sourcing Rules.................................................................................................... 5-30
Assigning Sourcing Rules and Bills of Distribution........................................................... 5-33
Approved Supplier List........................................................................................................... 5-35
ASL Repository Maintenance.............................................................................................5-35
ASL Business Needs.......................................................................................................... 5-36
Defining Approved Supplier Statuses............................................................................... 5-37
Defining the Supplier and Item/Commodity Combination............................................... 5-40
Defining the Supplier-Item Attributes............................................................................... 5-43
View Approved Suppliers................................................................................................. 5-48
Entering RFQs......................................................................................................................... 5-49
Entering RFQ Headers....................................................................................................... 5-49
Entering RFQ Lines............................................................................................................ 5-53
Entering RFQ Supplier Information................................................................................... 5-55
Entering RFQ Terms Information...................................................................................... 5-57
Entering RFQ Shipment Information................................................................................. 5-58
Entering RFQ Price Break Information.............................................................................. 5-60
Entering Quotations................................................................................................................ 5-62
Entering Quotation Headers.............................................................................................. 5-62
Entering Quotation Lines................................................................................................... 5-66
Entering Quotation Terms Information............................................................................. 5-69
Entering Quotation Shipment Information........................................................................ 5-70
Entering Quotation Price Break Information..................................................................... 5-72
Copying Quotations from RFQs............................................................................................. 5-74
Approving Quotations............................................................................................................ 5-75
Finding Quotations for Approval...................................................................................... 5-75
Approving Quotation Shipments.......................................................................................5-77
Approving Entire Quotations............................................................................................ 5-79
Defining Supplier Lists........................................................................................................... 5-81
Managing Buyer Workload..................................................................................................... 5-83
Finding Requisition Lines for Review or Assignment....................................................... 5-83
Reviewing Buyer Workload............................................................................................... 5-85
Assigning Requisition Lines.............................................................................................. 5-86
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6
AutoCreate
AutoCreate Documents Overview............................................................................................ 6-1
AutoCreate Document Options........................................................................................... 6-3
Additional AutoCreate Features.......................................................................................... 6-7
Oracle iProcurement Requisitions........................................................................................6-8
Finding Requisition Lines for AutoCreate............................................................................... 6-9
Selecting AutoCreate Criteria................................................................................................. 6-12
Entering Document Information and Completing AutoCreate............................................. 6-15
Using the Document Builder.................................................................................................. 6-17
Modifying Requisition Lines.................................................................................................. 6-19
7
Professional Buyer's Work Center
Buyer's Work Center Overview................................................................................................ 7-1
Using the Demand Workbench: Requisitions.......................................................................... 7-3
Requisitions: Demand Workbench........................................................................................... 7-4
Purchase Orders....................................................................................................................... 7-10
Finding Standard Purchase Orders......................................................................................... 7-11
Entering Purchase Order Information.................................................................................... 7-12
Purchase Agreements.............................................................................................................. 7-17
Finding Agreements................................................................................................................ 7-18
Create And Update Agreements............................................................................................. 7-19
8
Communication With Suppliers
Overview of Supplier Communication.................................................................................... 8-1
Printed Purchase Orders Overview..................................................................................... 8-3
9
Receiving
Overview of Receiving.............................................................................................................. 9-1
Centralized Purchasing for Multiple Receiving Organizations............................................9-5
Receiving Locations............................................................................................................. 9-6
Movement Statistics............................................................................................................. 9-6
Receiving Controls, Options, and Profiles........................................................................... 9-7
Receipt Tolerances............................................................................................................. 9-12
Return Material Authorizations (RMAs)........................................................................... 9-13
Debit Memos...................................................................................................................... 9-14
Drop Shipment Receipts.................................................................................................... 9-15
Receiving Open Interface................................................................................................... 9-15
Advance Shipment Notices (ASNs)........................................................................................ 9-15
viii
Managing Receipts.................................................................................................................. 9-21
Multiple Distributions........................................................................................................9-22
Cascading Receipts and Receiving Transactions................................................................9-23
Express Receipts and Receiving Transactions.................................................................... 9-23
Entering Express Receipts.................................................................................................. 9-25
Finding Expected Receipts................................................................................................. 9-25
Entering Receipt Header Information................................................................................ 9-29
Entering Receipt Lines....................................................................................................... 9-30
Unordered Receipts................................................................................................................. 9-34
Entering Unordered Receipts............................................................................................. 9-36
Matching Unordered Receipts........................................................................................... 9-36
Receiving Transactions........................................................................................................... 9-39
Finding Receiving Transactions (Summary)...................................................................... 9-41
Using the Receiving Headers Summary Window..............................................................9-44
Using the Receiving Transaction Summary Window........................................................ 9-45
Viewing Accounting Lines................................................................................................. 9-47
Using the Receipt Header Details Window....................................................................... 9-50
Finding Transaction Status Information............................................................................ 9-51
Viewing Transaction Status Information........................................................................... 9-54
Finding Receiving Transactions......................................................................................... 9-55
Entering Receiving Transactions........................................................................................ 9-58
Drilling Down to Purchasing from Oracle General Ledger............................................... 9-61
Inspections............................................................................................................................... 9-63
Inspecting Received Items................................................................................................. 9-65
Returns..................................................................................................................................... 9-66
Finding Returns................................................................................................................. 9-68
Entering Returns................................................................................................................ 9-71
Corrections............................................................................................................................... 9-73
Finding Corrections........................................................................................................... 9-74
Entering Corrections.......................................................................................................... 9-78
Finding Intransit Shipments................................................................................................... 9-80
Managing Shipments......................................................................................................... 9-81
Control Numbers..................................................................................................................... 9-83
Receiving Reports.................................................................................................................... 9-85
Overview of Receipt Accounting............................................................................................ 9-86
Setting Up Inventory Accruals........................................................................................... 9-89
Accrual Process for Perpetual Accruals............................................................................. 9-94
Monitoring Price Variances..............................................................................................9-101
Reconciling AP Accrual Accounts Balance...................................................................... 9-102
Accrual Process for Period-End Accruals........................................................................ 9-104
Identifying Journal Entry Batches in General Ledger...................................................... 9-108
ix
Accrual Write Off............................................................................................................. 9-111
Automatic Offsets in Oracle Purchasing.............................................................................. 9-120
Defining Purchase Order Receipt Accruals...................................................................... 9-120
10
Inquiries
Viewing Action History.......................................................................................................... 10-1
Viewing Purchase Order Changes.......................................................................................... 10-3
11
Reports
Accrual Write-Off Report........................................................................................................ 11-1
Advanced Shipment Notice Discrepant Receipts Report...................................................... 11-3
AP and PO Accrual Reconciliation Report............................................................................. 11-4
Backordered Internal Requisitions Report............................................................................. 11-6
Blanket and Planned PO Status Report.................................................................................. 11-7
Buyer Listing........................................................................................................................... 11-8
Buyer's Requisition Action Required Report......................................................................... 11-9
Cancelled Purchase Orders Report....................................................................................... 11-11
Cancelled Requisitions Report............................................................................................. 11-11
Contract Status Report.......................................................................................................... 11-12
Country of Origin Report (by Item)...................................................................................... 11-13
Country of Origin Report (by Supplier)............................................................................... 11-14
Encumbrance Detail Report.................................................................................................. 11-15
Expected Receipts Report...................................................................................................... 11-17
Financials/Purchasing Options Listing.................................................................................11-19
Internal Requisition Status Report....................................................................................... 11-19
Internal Requisitions/Deliveries Discrepancy Report......................................................... 11-20
Invoice Price Variance Report............................................................................................... 11-21
Invoice Price Variance by Supplier Report.......................................................................... 11-22
Item Detail Listing................................................................................................................ 11-24
Item Summary Listing........................................................................................................... 11-25
Location Listing..................................................................................................................... 11-25
Matching Holds by Buyer Report......................................................................................... 11-27
Miscellaneous Accrual Reconciliation Report......................................................................11-28
New Supplier Letter Report.................................................................................................. 11-30
Open Purchase Orders Report (by Buyer)............................................................................ 11-31
Open Purchase Orders Report (by Cost Center)................................................................... 11-32
Overdue Supplier Shipments Report................................................................................... 11-33
Overshipments Report.......................................................................................................... 11-34
Printed Change Orders Report (Landscape)......................................................................... 11-35
Printed Change Orders Report (Portrait).............................................................................. 11-37
x
Printed Purchase Order Report (Landscape)........................................................................ 11-39
Printed Purchase Order Report (Portrait)............................................................................. 11-42
Printed RFQ Report (Landscape).......................................................................................... 11-44
Printed RFQ Report (Portrait)............................................................................................... 11-45
Printed Requisitions Report..................................................................................................11-46
Purchase Agreement Audit Report....................................................................................... 11-47
Purchase Order Commitment by Period Report...................................................................11-48
Purchase Order Detail Report............................................................................................... 11-49
Purchase Order Distribution Detail Report..........................................................................11-51
Purchase Order and Releases Detail Report......................................................................... 11-52
Purchase Price Variance Report............................................................................................ 11-53
Purchase Requisition Status Report..................................................................................... 11-54
Purchase Summary Report by Category............................................................................... 11-55
Purchasing Activity Register................................................................................................. 11-56
Purchasing Interface Errors Report....................................................................................... 11-57
Purge Purchasing Open Interface Processed Data............................................................... 11-59
Quality Code Listing............................................................................................................. 11-59
Quotation Action Required Report....................................................................................... 11-60
Receipt Adjustments Report................................................................................................. 11-61
Receipt Traveler..................................................................................................................... 11-63
Receiving Account Distribution Report............................................................................... 11-64
Receiving Exceptions Report.................................................................................................11-66
Receiving Interface Errors Report......................................................................................... 11-67
Receiving Transactions Register........................................................................................... 11-68
Receiving Value Report.........................................................................................................11-70
Receiving Value Report by Destination Account.................................................................11-73
ReqExpress Templates Listing.............................................................................................. 11-74
Requisition Activity Register................................................................................................ 11-74
Requisition Distribution Detail Report................................................................................ 11-75
Requisition Import Exceptions Report................................................................................. 11-76
Requisitions on Cancelled Sales Order Report.................................................................... 11-77
RFQ Action Required Report................................................................................................ 11-77
Savings Analysis Report (by Buyer)..................................................................................... 11-78
Savings Analysis Report (by Category)................................................................................ 11-79
Standard Notes Listing.......................................................................................................... 11-80
Substitute Receipts Report.................................................................................................... 11-81
Summary Accrual Reconciliation Report............................................................................. 11-82
Supplier Affiliated Structure Listing....................................................................................11-83
Supplier Price Performance Analysis Report....................................................................... 11-84
Supplier Purchase Summary Report.....................................................................................11-85
Supplier Quality Performance Analysis Report................................................................... 11-86
xi
Supplier Service Performance Analysis Report................................................................... 11-87
Supplier Volume Analysis Report........................................................................................ 11-89
Suppliers on Hold Report..................................................................................................... 11-89
Uninvoiced Receipts Report..................................................................................................11-90
Unit of Measure Class Listing............................................................................................... 11-92
Unit of Measure Listing........................................................................................................ 11-92
Unordered Receipts Report................................................................................................... 11-93
12
Processes
Accrual Load............................................................................................................................ 12-1
ASL Upgrade Process.............................................................................................................. 12-2
Confirm Receipts Workflow Select Orders Process............................................................... 12-3
Create Internal Sales Orders Process...................................................................................... 12-4
Create Releases Process........................................................................................................... 12-5
Fill Employee Hierarchy Process............................................................................................ 12-6
Generate Sourcing Rules And ASLs From Blanket Agreements........................................... 12-6
Import Price Catalog................................................................................................................ 12-8
Import Standard Purchase Orders........................................................................................ 12-11
Mass Update of Buyer Name on Purchasing Documents.................................................... 12-13
Payment on Receipt............................................................................................................... 12-14
PO Output for Communication............................................................................................ 12-20
Purchasing Database Administration................................................................................... 12-22
Purchasing Documents Open Interface................................................................................ 12-22
Receipt Accruals - Period-End Process..................................................................................12-23
Receiving Transaction Processor.......................................................................................... 12-25
Requisition Import Process................................................................................................... 12-27
Reset Period End Accrual Flags.............................................................................................12-30
Reschedule Requisitions Process.......................................................................................... 12-30
Retrieve Time from Oracle Time and Labor (OTL).............................................................. 12-31
Retroactive Price Update on Purchasing Documents........................................................... 12-31
Send Notifications for Purchasing Documents.................................................................... 12-34
A
Windows and Navigator Paths
Oracle Purchasing Windows and Navigator Paths.................................................................. A-1
B
Oracle Purchasing Alerts
Using Oracle Alert in Oracle Purchasing................................................................................. B-1
Predefined Purchasing Alerts.............................................................................................. B-2
xii
C
Oracle Purchasing Profile Options and Profile Option Categories
Profile Options and Profile Option Categories Overview...................................................... C-1
Profile Option Category and Profile Options Descriptions.................................................... C-5
D
Function Security for Purchasing
Function Security for Purchasing............................................................................................. D-1
E
Procurement Workflows
Overview of Procurement Workflows......................................................................................E-1
Customization Guidelines........................................................................................................ E-2
Using the Account Generator in Oracle Purchasing................................................................ E-6
Decide How to Use the Account Generator......................................................................... E-7
What the Account Generator Does in Oracle Purchasing ................................................... E-9
Customizing the Account Generator for Oracle Purchasing............................................. E-24
The Default Account Generator Processes for Oracle Purchasing..................................... E-30
Summary of the Generate Default Accounts Process........................................................ E-37
Generate Default Accounts Process Activities................................................................... E-39
Summary of the Generate Default Accrual Account Subprocess.......................................E-43
Summary of the Generate Default Budget Account Subprocess........................................E-43
Summary of the Generate Default Charge Account Subprocess....................................... E-44
Summary of the Generate Default Variance Account Subprocess..................................... E-44
Summary of the Build Expense Charge Account Subprocess............................................ E-45
Summary of the Build Inventory Charge Account Subprocess......................................... E-45
Summary of the Build Shop Floor Charge Account Subprocess........................................E-46
Summary of the Build Inventory Budget Account Subprocess......................................... E-46
Summary of the Build Project Account Subprocesses....................................................... E-47
Summary of the Get Charge Account for Variance Account Subprocess.......................... E-48
Summary of the Get Variance Account from Organization Subprocess............................ E-48
Summary of the Generate Accounts Using FlexBuilder Rules Process..............................E-49
Using the Workflow Monitor with the Account Generator............................................... E-49
Requisition Approval Workflow............................................................................................ E-50
Customizing the PO Requisition Approval Workflow...................................................... E-51
The PO Requisition Approval Workflow Item Type......................................................... E-56
Summary of the Main Requisition Approval Process........................................................E-62
Main Requisition Approval Process Activities.................................................................. E-63
Summary of the Start of Approve Requisition Process......................................................E-67
Start of Approve Requisition Process Activities................................................................ E-68
Summary of the Verify Requisition Subprocess................................................................ E-69
Verify Requisition Subprocess Activities........................................................................... E-70
xiii
Summary of the Reserve At The Start Subprocess.............................................................E-71
Reserve At The Start Subprocess Activities....................................................................... E-71
Summary of the Verify Approval Authority Subprocess.................................................. E-72
Verify Approval Authority Subprocess Activities............................................................. E-73
Summary of the Approval List Routing Subprocess......................................................... E-74
Approval List Routing Subprocess Activities.................................................................... E-74
Summary of the Reject Requisition Subprocess................................................................. E-75
Reject Requisition Subprocess Activities........................................................................... E-76
Summary of the Return Requisition to Submitter Subprocess...........................................E-77
Return Requisition to Submitter Subprocess Activities..................................................... E-77
Summary of the Notify Approver Subprocess.................................................................. E-78
Notify Approver Subprocess Activities............................................................................. E-79
Summary of the Response with Approve Action Subprocess........................................... E-80
Response with Approve Action Subprocess Activities...................................................... E-80
Summary of the Response with Approve and Forward Action Subprocess......................E-81
Response with Approve and Forward Action Subprocess Activities................................ E-81
Summary of the Response with Forward Action Subprocess............................................ E-82
Response with Forward Action Subprocess Activities...................................................... E-83
Summary of the Response with Reject Action Subprocess................................................ E-83
Response with Reject Action Subprocess Activities...........................................................E-83
Summary of the Reserve Before Approve Subprocess.......................................................E-83
Reserve Before Approve Subprocess Activities................................................................. E-84
Summary of the Approve Requisition Subprocess............................................................ E-85
Approve Requisition Subprocess Activities...................................................................... E-86
Summary of the Print Document Subprocess.................................................................... E-87
Print Document Subprocess Activities.............................................................................. E-88
Summary of the Verify Approval Authority for Approve and Approve/Forward Action
Subprocesses...................................................................................................................... E-88
Verify Approval Authority Subprocess Activities............................................................. E-89
Purchase Order Approval Workflow......................................................................................E-89
Customizing the PO Approval Workflow......................................................................... E-90
The PO Approval Item Type............................................................................................. E-95
Summary of the PO Approval Top Process..................................................................... E-103
PO Approval Top Process Activities............................................................................... E-104
Summary of the PO Approval Process............................................................................ E-108
PO Approval Process Activities.......................................................................................E-109
Summary of the Verify PO Subprocess........................................................................... E-112
Verify PO Subprocess Activities...................................................................................... E-112
Summary of the Reserve Before Approve Subprocess.....................................................E-114
Reserve Before Approve Subprocess Activities............................................................... E-114
Summary of the Verify Approval Authority Subprocess................................................ E-116
xiv
Verify Approval Authority Subprocess Activities........................................................... E-116
Summary of the Approve PO Subprocess....................................................................... E-117
Approve PO Subprocess Activities.................................................................................. E-118
Summary of the Print, Fax, and Email Document Subprocesses..................................... E-120
Print, Fax, and Email Document Subprocess Activities................................................... E-120
Summary of the Approve and Forward PO Subprocess..................................................E-121
Approve and Forward PO Subprocess Activities............................................................ E-122
Summary of the Notify Approver Subprocess................................................................ E-124
Notify Approver Subprocess Activities........................................................................... E-124
Summary of the Find Approver Subprocess................................................................... E-126
Find Approver Subprocess Activities.............................................................................. E-127
Summary of the Forward PO Subprocess........................................................................ E-128
Forward PO Subprocess Activities.................................................................................. E-129
Summary of the Return PO to Submitter Subprocess...................................................... E-130
Return PO to Submitter Subprocess Activities................................................................ E-130
Summary of the Reject PO Subprocess............................................................................ E-131
Reject PO Subprocess Activities...................................................................................... E-132
Change Order Process Activities..................................................................................... E-133
Workflow Processes for Approving Change Orders............................................................E-133
Customizing the Change Order Workflow......................................................................E-133
The Change Order Workflow Item Attributes................................................................. E-136
Summary of the Get All Document Changes Subprocess................................................E-147
Get All Document Changes Subprocess Activities.......................................................... E-147
Summary of the Get All Blanket PO Changes Subprocess.............................................. E-149
Get All Blanket PO Changes Subprocess Activities......................................................... E-149
Summary of the Get All Contract PO Changes Subprocess.............................................E-150
Get All Contract PO Changes Subprocess Activities....................................................... E-150
Summary of the Get All Planned PO Changes Subprocess............................................. E-150
Get All Planned PO Changes Subprocess Activities........................................................ E-151
Summary of the Get All Release Changes Subprocess.................................................... E-152
Get All Release Changes Subprocess Activities............................................................... E-152
Summary of the Get All Standard PO Changes Subprocess............................................ E-153
Get All Standard PO Changes Subprocess Activities...................................................... E-153
Summary of the Do Document Changes Require Reapproval? Subprocess.................... E-154
Do Document Changes Require Reapproval? Subprocess Activities.............................. E-154
Summary of the Change Order Reserve Before Approve Subprocess............................. E-155
Change Order Reserve Before Approve Subprocess Activities....................................... E-156
Summary of the Approve PO (Change Order) Subprocess............................................. E-157
Approve PO (Change Order) Subprocess Activities........................................................E-158
Summary of the Print and Fax Document Processes (Change Order)............................. E-160
Print and Fax Document Process (Change Order) Activities........................................... E-161
xv
Workflow for Creating Purchase Orders and Releases....................................................... E-161
Customizing the Automatic Document Creation Workflow........................................... E-162
The PO Create Documents Item Type............................................................................. E-167
Summary of Overall Document Creation / Launch Approval Process............................ E-171
Overall Document Creation / Launch Approval Process Activities................................ E-172
Summary of the Verify Req Line Information Process.................................................... E-174
Verify Req Line Information Process Activities............................................................... E-176
Summary of the Does Req Line Have Enough Information To Automatically Create A
Document? Process.......................................................................................................... E-178
Does Req Line Have Enough Information To Automatically Create A Document? Process
Activities.......................................................................................................................... E-178
Summary of the Create and Approve Purchase Order Or Release Process..................... E-179
Create And Approve Purchase Order Or Release Process Activities.............................. E-180
Summary of the Get Buyer Subprocess........................................................................... E-181
Get Buyer Subprocess Activities...................................................................................... E-181
Using the Workflow Monitor for the PO Create Documents Workflow..........................E-182
Confirm Receipts Workflow................................................................................................. E-184
Customizing the Confirm Receipts Workflow.................................................................E-184
The Confirm Receipts Workflow Item Type.................................................................... E-188
Summary of the Confirm Receipt Process....................................................................... E-191
Confirm Receipt Process Activities.................................................................................. E-192
Summary of the Notify Requester Subprocess................................................................ E-194
Notify Requester Subprocess Activities........................................................................... E-194
PO Send Notifications Workflow.........................................................................................E-195
Customizing the PO Send Notifications for Purchasing Documents Workflow..............E-195
The PO Send Notifications for Purchasing Documents Item Type.................................. E-199
Summary of the PO Document Approval Reminder Process.......................................... E-202
PO Document Approval Reminder Process Activities.................................................... E-203
Price/Sales Catalog Notification Workflow......................................................................... E-206
Customizing the Issue Notifications Process................................................................... E-208
The PO Catalog Price Tolerances Exceeded Notifications Item Type.............................. E-210
Summary of the Issue Notifications Process.................................................................... E-210
Issue Notifications Process Activities.............................................................................. E-211
Debit Memo Notification Workflow.................................................................................... E-212
Customizing the Debit Memo Notification Workflow.................................................... E-212
The PO Debit Memo Notification Item Type................................................................... E-214
Summary of the Debit Memo Process..............................................................................E-215
Process Navigator Workflows.............................................................................................. E-216
PO Approval Error Workflow...............................................................................................E-217
Customizing the PO Approval Error Workflow.............................................................. E-218
The PO Approval Error Item Type.................................................................................. E-221
xvi
Summary of PO Approval Error Workflow.................................................................... E-221
F
21 CFR Part 11 Compliance: Oracle E-Records
21 CFR Part 11 Overview........................................................................................................... F-1
E-records and E-signatures for Oracle Purchasing................................................................... F-2
Viewing Oracle E-Records and E-Signatures........................................................................... F-3
G
Complex Work in the Procurement Suite
Complex Work in the Procurement Suite................................................................................ G-1
GLOSSARY
Index
xvii
Send Us Your Comments
Oracle Purchasing User's Guide, Release 12
Part No. B28669-01
Oracle welcomes customers' comments and suggestions on the quality and usefulness of this document.
Your feedback is important, and helps us to best meet your needs as a user of our products. For example:
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xix
Preface
Intended Audience
Welcome to Release 12 of the Oracle Purchasing User's Guide.
This guide contains the information needed to implement and use Oracle Purchasing.
See Related Information Sources on page xxii for more Oracle Applications product
information.
TTY Access to Oracle Support Services
Oracle provides dedicated Text Telephone (TTY) access to Oracle Support Services
within the United States of America 24 hours a day, seven days a week. For TTY
support, call 800.446.2398.
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xxi
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consists solely of a bracket or brace.
Accessibility of Links to External Web Sites in Documentation
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that Oracle does not own or control. Oracle neither evaluates nor makes any
representations regarding the accessibility of these Web sites.
Structure
1 Setting Up
2 Approval, Security, and Control
3 Requisitions
4 Purchase Orders
5 Supply Base Management
6 AutoCreate
7 Professional Buyer's Work Center
8 Communication With Suppliers
9 Receiving
10 Inquiries
11 Reports
12 Processes
A Windows and Navigator Paths
B Oracle Purchasing Alerts
C Oracle Purchasing Profile Options and Profile Option Categories
D Function Security for Purchasing
E Procurement Workflows
F 21 CFR Part 11 Compliance: Oracle E-Records
G Complex Work in the Procurement Suite
GLOSSARY
Related Information Sources
You can choose from many sources of information, including online documentation,
training, and support services, to increase your knowledge and understanding of Oracle
Purchasing.
If this guide refers you to other Oracle Applications documentation, use only the
Release 12 versions of those guides.
Warning: This guide includes information about many features of
Oracle Applications other than Oracle Purchasing. These other Oracle
Applications may require separate licenses, and must be fully installed
to take advantage of their features.
Online Documentation
xxii
All Oracle Applications documentation is available online (HTML or PDF).
•
Online Help – Online help patches (HTML) are available on OracleMetaLink.
•
PDF (Softcopy Guides) - Adobe Acrobat PDF versions of all Oracle Applications
guides are available on OracleMetaLink.
•
For a full list of documentation resources for Oracle Applications Release 12, see
Oracle Applications Documentation Resources, Release 12, OracleMetaLink
Document 394692.1.
•
Oracle eBusiness Suite Electronic Technical Reference Manuals - Each Electronic
Technical Reference Manual (eTRM) contains database diagrams and a detailed
description of database tables, forms, reports, and programs for a specific Oracle
Applications product. This information helps you convert data from your existing
applications and integrate Oracle Applications data with non-Oracle applications,
and write custom reports for Oracle Applications products. Oracle eTRM is
available on OracleMetaLink.
Guides Related to All Products
•
Oracle Applications User's Guide: This guide explains how to enter data, query,
run reports, and navigate using the graphical user interface (GUI) available with
this release of Purchasing (and any other Oracle Applications products). This guide
also includes information on setting user profiles, as well as running and reviewing
reports and concurrent processes.
•
Multiple Organizations in Oracle Applications: If you use the Oracle Applications
Multiple Organization Support feature to use multiple sets of books for one
Purchasing installation, use this guide to learn about setting up and using
Purchasing with this feature.
User Guides Related to This Product
Oracle Purchasing shares business and setup information with other Oracle
Applications products. Therefore, you may want to refer to other user guides when you
set up and use Oracle Purchasing.
•
Oracle Advanced Pricing User's Guide: This guide describes how to setup complex
pricing structures in the form of price lists, price formulas and modifiers. It explains
how to use Oracle Advanced Pricing for topics such as enabling automatic
discounts, working with price lists, creating formula prices, and general reports
available.
•
Oracle Bills of Material User's Guide: This guide describes how to create various
bills of materials to maximize efficiency, improve quality and lower cost for the
most sophisticated manufacturing environments. By detailing integrated product
structures and processes, flexible product and process definition, and configuration
management, this guide enables you to manage product details within and across
xxiii
multiple manufacturing sites.
xxiv
•
Oracle Business Intelligence System Implementation Guide: This guide provides
information about implementing Oracle Business Intelligence (BIS) for Purchasing
in your environment.
•
Oracle Business Intelligence User Guide Online Help: This guide is provided as
online help only from the BIS application and includes information about
intelligence reports, Discoverer workbooks, and the Performance Management
Framework.
•
Oracle Cost Management User's Guide: This guide describes how to use Oracle
Cost Management in either a standard costing or average costing organization. Cost
Management can be used to cost inventory, receiving, order entry, and work in
process transactions. It can also be used to collect transaction costs for transfer to
Oracle Projects. Cost Management supports multiple cost elements and multiple
sub-elements. It also provides comprehensive valuation and variance reporting.
•
Oracle General Ledger User Guide: Use this manual when you plan and define
your chart of accounts, accounting period types and accounting calendar, functional
currency, and ledgers. It also describes how to define journal entry sources and
categories so you can create journal entries for your general ledger. If you use
multiple currencies, use this manual when you define additional rate types, and
enter daily rates. This manual also includes complete information on implementing
Budgetary Control.
•
Oracle HRMS Documentation Set: This documentation set includes the following
volumes: Oracle HRMS Compensation and Benefits Management Guide, Oracle HRMS
Configuring, Reporting, and System Administration Guide, Oracle HRMS Enterprise and
Workforce Management Guide, Oracle HRMS Implementation Guide, Oracle HRMS
Payroll Processing Management Guide, and Oracle HRMS Workforce Sourcing,
Deployment, and Talent Management Guide.
•
Oracle Inventory User's Guide: This guide describes how to define items and item
information, perform receiving and inventory transactions, maintain cost control,
plan items, perform cycle counting and physical inventories, and set up Oracle
Inventory.
•
Oracle Order Management User's Guide: This guide describes how to enter sales
orders and returns, copy existing sales orders, schedule orders, release orders,
create price lists and discounts for orders, run processes, and create reports.
•
Oracle Payables User's Guide: This guide describes how accounts payable
transactions are created and entered in Oracle Payables. This guide also contains
detailed setup information for Oracle Payables.
•
Oracle Procurement Contracts Online Help: This guide is provided as online help
only from the Oracle Procurement Contracts application and includes information
about creating and managing your contract terms library.
•
Oracle Projects Documentation Set: This documentation set includes the following
volumes: Oracle Project Billing User Guide, Oracle Project Costing User Guide, Oracle
Projects Fundamentals User Guide, Oracle Project Management User Guide, Oracle
Project Resource Management User Guide, Oracle Projects Implementation Guide, and
Oracle Projects APIs, Client Extensions, and Open Interfaces Reference. These guides
provide complete information about the Oracle Projects solution. Start with the
fundamentals guide if you are new to Oracle Projects.
•
Oracle Quality User's Guide: This guide describes how Oracle Quality can be used
to meet your quality data collection and analysis needs. This guide also explains
how Oracle Quality interfaces with other Oracle Manufacturing applications to
provide a closed loop quality control system.
•
Oracle Receivables User's Guide: Use this manual to learn how to implement
flexible address formats for different countries. You can use flexible address
formats in the suppliers, banks, invoices, and payments windows.
Other Implementation Documentation
•
Oracle Applications Flexfields Guide: This guide provides flexfields planning,
setup, and reference information for the Oracle Purchasing implementation team, as
well as for users responsible for the ongoing maintenance of Oracle Applications
product data. This guide also provides information on creating custom reports on
flexfields data.
•
Oracle e–Commerce Gateway User's Guide: This guide describes how Oracle e–
Commerce Gateway provides a means to conduct business with trading partners
via Electronic Data Interchange (EDI). Data files are exchanged in a standard format
to minimize manual effort, speed data processing and ensure accuracy.
•
Oracle Integration Repository: The Oracle Integration Repository is a compilation
of information about the numerous service endpoints exposed by the Oracle
E-Business Suite of applications. It provides a complete catalog of Oracle E-Business
Suite's business service interfaces. The tool lets users easily discover and deploy the
appropriate business service interface for integration with any system, application,
or business partner.
The Oracle Integration Repository is shipped as part of the E-Business Suite. As
your instance is patched, the repository is automatically updated with content
appropriate for the precise revisions of interfaces in your environment. As the
central repository of information about all available interfaces, the Integration
Repository will eventually replace the product-specific API manuals.
•
Oracle Manufacturing APIs and Open Interfaces Manual: This manual contains
up–to–date information about integrating with other Oracle Manufacturing
xxv
applications and with your other systems. The documentation includes APIs and
open interfaces found in Oracle Manufacturing.
•
Oracle Order Management Suite APIs and Open Interfaces Manual: This manual
contains up–to–date information about integrating Oracle Order Management with
your other systems. The documentation includes APIs and open interfaces found in
the Oracle Order Management Suite.
•
Oracle Procurement Contracts Implementation and Administration Guide: This
guide describes the set up steps to implement Oracle Procurement Contracts. It also
includes details about administration of the contract terms library.
•
Oracle Workflow Administrator's Guide: This guide explains how to complete the
setup steps necessary for any Oracle Applications product that includes workflow–
enabled processes, as well as how to monitor the progress of runtime workflow
processes.
•
Oracle Workflow Developer's Guide: This guide explains how to define new
workflow business processes and customize existing Oracle Applications–
embedded workflow processes. It also describes how to define and customize
business events and event subscriptions.
Integration Repository
The Oracle Integration Repository is a compilation of information about the service
endpoints exposed by the Oracle E-Business Suite of applications. It provides a
complete catalog of Oracle E-Business Suite's business service interfaces. The tool lets
users easily discover and deploy the appropriate business service interface for
integration with any system, application, or business partner.
The Oracle Integration Repository is shipped as part of the E-Business Suite. As your
instance is patched, the repository is automatically updated with content appropriate
for the precise revisions of interfaces in your environment.
Do Not Use Database Tools to Modify Oracle Applications Data
Oracle STRONGLY RECOMMENDS that you never use SQL*Plus, Oracle Data
Browser, database triggers, or any other tool to modify Oracle Applications data unless
otherwise instructed.
Oracle provides powerful tools you can use to create, store, change, retrieve, and
maintain information in an Oracle database. But if you use Oracle tools such as
SQL*Plus to modify Oracle Applications data, you risk destroying the integrity of your
data and you lose the ability to audit changes to your data.
Because Oracle Applications tables are interrelated, any change you make using an
Oracle Applications form can update many tables at once. But when you modify Oracle
xxvi
Applications data using anything other than Oracle Applications, you may change a
row in one table without making corresponding changes in related tables. If your tables
get out of synchronization with each other, you risk retrieving erroneous information
and you risk unpredictable results throughout Oracle Applications.
When you use Oracle Applications to modify your data, Oracle Applications
automatically checks that your changes are valid. Oracle Applications also keeps track
of who changes information. If you enter information into database tables using
database tools, you may store invalid information. You also lose the ability to track who
has changed your information because SQL*Plus and other database tools do not keep a
record of changes.
xxvii
1
Setting Up
Overview of Setting Up
This section contains an overview of each step you need to complete to set up Oracle
Purchasing. For instructions on how to complete each task, see the setup sections
indicated in each step.
Multiple Reporting Currencies:
If you plan to use Multiple Reporting Currencies (MRC) with Oracle Purchasing,
additional setup steps are required. See: Multiple Reporting Currencies in Oracle
Applications.
Setup Checklist :
Some of the steps outlined in the setup checklist are Required, and some are Optional.
Required Step With Defaults means that the setup functionality comes with pre-seeded,
default values in the database; however, you should review those defaults and decide
whether to change them to suit your business needs. If you want or need to change
them, you should perform that setup step. You need to perform Optional steps only if
you plan to use the related feature or complete certain business functions.
Some of the setup steps you may not need to perform if you've already performed a
common-application setup (setting up multiple Oracle Applications products).
The following table lists setup steps and a reference to their Oracle Application. After
you log on to Oracle Applications, complete these steps to implement Purchasing:
Step No.
Required
Step 1
Required
Step
Set Up System Administrator
Application
Common
Applications
Setting Up 1-1
Step No.
Required
Step 2
Required
Define Accounting Key Flexfields
Common
Applications
Step 3
Required
Set Up Calendars, Currencies, and
Ledgers
Common
Applications
Step 4
Required
Define Human Resources Key
Flexfields
Common
Applications
Step 5
Required
Define Locations
Human Resources
Step 6
Required
Define Organizations and
Organization Relationships
Human Resources
Step 7
Required
Convert to a Multi-Org Architecture
Common
Applications
Step 8
Required
Define Inventory Key Flexfields
Common
Applications
Step 9
Required
Define Units of Measure
Oracle Inventory
Step 10
Optional
Define Freight Carriers
Oracle Inventory
Step 11
Required Step
with Defaults
Define Item Attributes, Codes, and
Templates
Oracle Inventory
Step 12
Required
Define Categories
Oracle Inventory
Step 13
Optional
Define Catalog Groups
Oracle Inventory
Step 14
Required
Set Up Personnel
Human Resources
Step 15
Required
Set Up Oracle Workflow
Common
Applications
Step 16
Required
Decide How to Use the Account
Generator
Oracle Purchasing
Step 17
Required
Open Inventory and Purchasing
Accounting Periods
Oracle Purchasing
1-2 Oracle Purchasing User's Guide
Step
Application
Step No.
Required
Step
Application
Step 18
Optional
Define Subinventory Locations
Oracle Inventory
Step 19
Optional
Define Cross-Reference Types
Oracle Purchasing
Step 20
Optional
Define Taxes
Oracle E-Business Tax
Step 21
Optional
Define Payment Terms
Oracle Payables
Step 22
Required
Set Up Approval Information
Oracle Purchasing
Step 23
Required Step
with Defaults
Define Lookups and Classes
Oracle Purchasing
Step 24
Optional
Define Standard Attachments
Oracle Purchasing
Step 25
Required
Define Purchasing Options
Oracle Purchasing
Step 26
Required
Define Buyers
Oracle Purchasing
Step 27
Optional
Define Items
Oracle Purchasing
Step 28
Required Step
with Defaults
Define Line Types
Oracle Purchasing
Step 29
Required
Start the Purchasing Database
Administrator
Oracle Purchasing
Step 30
Required
Define Financial Options
Oracle Payables
Step 31
Optional
Define Transaction Reasons
Oracle Purchasing
Step 32
Required
Define Receiving Options
Oracle Purchasing
Step 33
Required
Set Up Transaction Managers and
Resubmission Intervals
Oracle Purchasing
Step 34
Required
Define Suppliers
Oracle Payables
Step 35
Required Step
with Defaults
Set Up Workflow Options
Oracle Purchasing
Setting Up 1-3
Step No.
Required
Step
Application
Step 36
Required
Submit Workflow-related Processes
Oracle Purchasing
Step 37
Optional
Define Descriptive Flexfields
Common
Applications
Step 38
Optional
Set Up Automatic Sourcing
Oracle Purchasing
Step 39
Required
Perform Additional System
Administrator Setup
Common
Applications
Step 40
Required
Define Manufacturing System and
User Profiles
Oracle Purchasing
Setup Steps:
For those steps that are affected, a Context section indicates whether you need to repeat
the step for each ledger, set of tasks, inventory organization, HR organization, or other
operating unit under Multiple Organizations.
Step 1: Set Up System Administrator
This step involves the following tasks:
•
•
Create a super user to use as a logon name during setup and assign the super user
the required setup responsibilities. Typically, the required responsibilities are as
follows (Required):
•
Purchasing
•
System Administrator
Set up printers. Although you do not have to set up all of your printers now, it may
be useful to set up one printer if you wish to print anything during setup. (Optional
)
See: Setting Up Oracle Applications System Administrator, Oracle Applications System
Administrator's Guide.
Step 2: Define Accounting Key Flexfields (Required)
Define Accounting key flexfields and cross validation rules. You may not need to
perform this step if you have already installed and set up Oracle General Ledger or
performed a common-applications setup. See: Designing Your Accounting Flexfield,
Oracle General Ledger Implementation Guide.
1-4 Oracle Purchasing User's Guide
Important: If you are, or will be, fully installing other Oracle
applications, be sure to coordinate with those products' flexfield setup
before defining the key flexfields here, as it is not recommended to
change flexfields after you acquire any flexfields data.
For instructions on how to set up key flexfields, see: Planning and Defining Key
Flexfields, Oracle Applications Flexfields Guide.
Step 3: Set Up Calendars, Currencies, and Ledgers (Required)
If you have defined your calendars, currencies, and ledgers while setting up a different
Oracle Applications product, proceed to the next step.
Context: If you are performing a Multi-Org implementation of Purchasing, you may
optionally create more than one calendar, currency, or ledgers. See: Multiple
Organizations in Oracle Applications.
This step involves the following tasks:
•
Set up calendars:
•
Define period types. See: Defining Period Types, Oracle General Ledger User's
Guide.
•
Define accounting calendar. See: Defining Calendars, Oracle General Ledger
User's Guide.
Note: You can define the following three optional items if you
install certain Oracle Manufacturing applications.
•
Define transaction calendar. See: Defining Transaction Calendars, Oracle General
Ledger Implementation Guide. (Optional)
•
Define workday calendar. See:Overview of Workday Calendar, Oracle Bills of
Material User's Guide. (Optional)
•
Define exception templates. See: Overview of Workday Calendar, Oracle Bills of
Material User's Guide. (Optional)
•
Define currencies. See: Defining Currencies, Oracle General Ledger User's Guide.
•
Define conversion rate types. See: Defining Conversion Rate Types, Oracle General
Ledger User's Guide.
•
Define your accounting information. You must define at least one primary ledger
for your organization. See: Defining Ledgers, Oracle General Ledger Implementation
Guide.
Setting Up 1-5
•
Assign your ledger to the current responsibility. See: Assigning the Ledger
Accounts, Oracle General Ledger Implementation Guide.
•
Define currency rates:
•
Define daily rates. See: Entering Daily Rates, Oracle General Ledger User's Guide.
•
Define period rates. See: Entering Period Rates, Oracle General Ledger User's
Guide.
•
Define historical rates. See: Entering Historical Rates, Oracle General Ledger
User's Guide.
•
Set up accounting code combinations. You do not need to perform this task if you
allow dynamic entry of code combinations for the chart of accounts corresponding
to your Purchasing installation. See: Oracle General Ledger User's Guide
•
Open and close accounting periods. See:Opening and Closing Accounting Periods,
Oracle General Ledger User's Guide.
Step 4: Define Human Resources Key Flexfields (Required)
You may not need to set up Human Resources key flexfields if you have already
installed and set up Oracle Human Resource Management Systems or performed a
common-applications setup. Refer to the Oracle HRMS Implementation Guide for details.
Important: If you are, or will be, fully installing other Oracle
applications, be sure to coordinate with those products' flexfield setup
before defining the key flexfields here, as it is not recommended to
change flexfields after you acquire any flexfield data.
For instructions on how to set up each of the key flexfields listed below, see: Oracle
Applications Flexfields Guide.
Define Human Resources and Payroll key flexfields:
•
Job flexfield
•
Position flexfield
•
Grade flexfield
•
Cost allocation flexfield
•
People Group flexfield
•
Personal Analysis flexfield
1-6 Oracle Purchasing User's Guide
Step 5: Define Locations (Required)
If you're also setting up other Oracle applications, you may already have defined
locations when you set up those applications.
You are required to set up at least one location for now. You can set up the remaining
locations after you define inventory organizations and tax codes.
You may need to revisit this step after you set up organizations, if you want to link a
location to an inventory organization.
See: Defining Locations, page 1-17.
Step 6: Define Organizations and Organization Relationships (Required)
You may not need to perform this step if you have already installed and set up Oracle
Inventory or performed a common-applications setup.
For the following tasks relating to setting up organizations, refer to your Oracle HRMS
Enterprise and Workforce Management Guide.
•
Define business groups, if you want to define new business groups rather than
using the default Setup Business Group .See: Setting Up Security for Applications
Using Some HRMS Windows, Oracle HRMS Enterprise and Workforce Management
Guide and Representing Employers Using Business Groups, Oracle HRMS Enterprise
and Workforce Management Guide.
•
Assign business groups to responsibilities. Within your responsibility, make sure
that the profile option HR: Business Group is set to the business group you want to
use for that responsibility.
Important: It is important that the HR: Business Group profile option
be set to the business group you want to use before you define
organizations as described below.
•
Define legal entities organizations.
•
Define operating-units and assign them to legal entities.
•
Set up inventory organizations. For the following tasks relating to setting up
inventory organizations, see: Oracle Inventory User's Guide.
•
Classify the organizations as inventory organizations.
•
Define accounting information for inventory organizations.
•
Define inventory organization parameters.
•
Define receiving options for the inventory organizations. For this task, see:
Defining Receiving Options, page 1-41.
Setting Up 1-7
•
Define human resources organizations.
•
Define organization hierarchies. (Optional)
Step 7: Convert to a Multi-Org Architecture (Required)
Although optional, this setup step is recommended even if your business is composed
of just one operating unit. Performing this step now gives you the flexibility to add
operating units later.
This step includes the following tasks:
•
Set the profile options MO: Operating Unit and HR: User Type.
•
Run the utility to convert to a Multi-Org architecture. It is recommended to involve
your system administrator with this task.
See: Multiple Organizations in Oracle Applications.
If your company has implemented a shared services operating model, Multi-Org Access
Control (MOAC) enables more efficient business transaction processing. You can access,
process, and report on data across multiple operating units from a single responsibility
without compromising data security or system performance.
To take advantage of Multi-Org Access Control, perform the following tasks:
•
Define a Multi-Org Security Profile. See: Defining a Security Profile, Oracle HRMS
Implementation Guide.
•
Set the profile option MO: Security Profile to your security profile for each
application responsibility that needs to access multiple operating units.
•
Set the profile option MO: Default Operating Unit to a default operating unit for the
responsibility from the step above.
Step 8: Define Inventory Key Flexfields (Required)
You may not need to set up Inventory key flexfields if you have already installed and
set up Oracle Inventory or performed a common-applications setup. See also: Oracle
Inventory Flexfields, Oracle Inventory User's Guide.
Important: If you are, or will be, fully installing other Oracle
applications, be sure to coordinate with those products' flexfield setup
before defining the key flexfields here, as it is not recommended to
change flexfields after you acquire any flexfield data.
For instructions on how to set up each of the key flexfields listed below, see: Oracle
Applications Flexfields Guide.
Define Inventory key flexfields:
1-8 Oracle Purchasing User's Guide
•
System Items flexfield. After you compile the System Items flexfields, the item
flexfield view concurrent request is started.
•
Item Category flexfield
•
PO Item Category flexfield. See: Item Category Flexfield Structures, Oracle Inventory
User's Guide.
•
Item Catalog flexfield
•
Stock Locator flexfield
•
Account aliases flexfields
•
Sales orders flexfield
Note: Even if you do not use any of the above flexfields, you must
still enable at least one flexfield segment for each and compile them
because Oracle Inventory transactions (such as the Define Items
window), inquiries, and reports require a frozen flexfield
definition.
Step 9: Define Units of Measure (Required)
You may not need to perform this step if you have already installed and set up Oracle
Inventory or performed a common-applications setup. See: Oracle Inventory User's Guide
.
This step involves the following tasks:
•
Define units-of-measure classes.
•
Define units of measure.
•
Define units-of-measure conversions. You can define three different conversion
types for your needs: Standard, Intra-class, or Inter-class.
Step 10: Define Freight Carriers (Optional)
Define freight carriers if you want to specify on a purchase order the freight carrier that
a supplier should use.
See: Defining Freight Carriers and Ship Methods, in the Oracle Order Management
Implementation Manual.
Context: You must perform this step for each inventory organization.
Step 11: Define Item Attributes, Codes, and Templates
See: Oracle Inventory User's Guide.
Setting Up 1-9
This step involves the following tasks:
•
Define item attribute controls. (Required with defaults)
Default: Most item attribute groups default to Item Master-level control. The rest
default to the Item/Organization level.
•
Define container type QuickCodes. These can be used to define physical attributes
for items. (Optional)
•
Define status codes. (Required with defaults)
Default: Default status codes include basic statuses such as Active, Inactive,
Obsolete, and Prototype.
•
Define item type QuickCodes. (Required with defaults)
Default: Default QuickCodes include finished goods, option class, kit, purchased
item, and others.
•
Define customer item commodity codes. These can be used to group customer
items. (Optional)
•
Define item templates. You can define an item template if many items share the
same values for a number of attributes. (Optional)
Step 12: Define Categories
If you're also setting up Oracle Inventory, you may already have performed this step
when you set up Inventory.
This step involves the following tasks:
•
Define category codes. See: Defining Categories, Oracle Inventory User's Guide. (
Required)
•
Define category sets. See: Defining Category Sets, Oracle Inventory User's Guide. (
Required with defaults)
Default: Examples of category sets are Inventory and Purchasing.
•
Define default category sets. See: Defining Default Category Sets, Oracle Inventory
User's Guide. (Required with defaults)
Default: Each functional area comes with a default category set.
Step 13: Define Catalog Groups (Optional)
A catalog group consists of descriptive elements for items to which you assign sets of
values such as type, size, or color. If you're also setting up Oracle Inventory, you may
already have performed this step when you set up Inventory.
See: Defining Item Catalog Groups, Oracle Inventory User's Guide.
1-10 Oracle Purchasing User's Guide
Step 14: Set Up Personnel
You may not need to perform this step if you have already installed and set up Oracle
Human Resource Management Systems or performed a common-applications setup.
Refer to the Oracle HRMS Enterprise and Workforce Management Guide or the HRMS
online help for details regarding the following steps.
This step involves the following tasks:
•
Define employee QuickCodes. (Required with defaults)
•
Define jobs. See: Representing Jobs and Positions, Oracle HRMS Enterprise and
Workforce Management Guide. (Required)
•
Define positions. You must define positions if you plan to use position approval
hierarchies. See: Representing Jobs and Positions, Oracle HRMS Enterprise and
Workforce Management Guide. (Optional)
•
Define position hierarchies. You can define one or more position hierarchies to meet
your needs. See: Position Hierarchy Window, Oracle HRMS Enterprise and Workforce
Management Guide. (Optional)
Default: If you skip this task, you cannot use position approval hierarchies, but
must use the employee/supervisor approval method instead.
•
•
Define the following financial options in the Financial Options window; see:
Defining Financials Options, Oracle Payables User's Guide (Required):
•
Employee numbering
•
Position approval hierarchies option (whether to use position approval
hierarchies)
•
Inventory organization
•
Business group (Make sure a business group is specified.)
•
Supplier numbering
Define employees. If you use Purchasing without Oracle Human Resource
Management Systems, use the setup window from within Purchasing for defining
employees. If you use Purchasing with Oracle Human Resource Management
Systems, use the setup window for defining employees from within the Human
Resource Management Systems application. Refer to the online help for the Enter
Person window for entry details. See: Entering a New Person, Oracle HRMS
Enterprise and Workforce Management Guide. (Required)
Note: Purchasing users must have user names, which is a later
Setting Up 1-11
setup step. These Purchasing user names must be linked to an
employee name.
Step 15: Set Up Oracle Workflow (Required)
Since Purchasing uses Oracle Workflow technology to perform document approvals,
automatic document creation, and account generation via the Account Generator, you
need to set up Oracle Workflow, if you haven't done so already. See: Setting Up Oracle
Workflow, Oracle Workflow Administrator's Guide.
Step 16: Decide How to Use the Account Generator (Required)
The Account Generator process in Purchasing builds a charge, budget, accrual, and
variance account for each purchase order, release, and requisition distribution based on
the distribution's Expense, Inventory, or Shop Floor destination type. You must review
the default process that Purchasing uses to see if it meets your accounting requirements.
You can optionally customize the Account Generator for each ledger that you have
defined. See: Using the Account Generator in Oracle Purchasing, page E-6.
Context: This step needs to be performed for each operating unit.
Step 17: Open Inventory and Purchasing Accounting Periods (Required)
This step involves the following tasks.
•
Open Inventory accounting period. See: Maintaining Accounting Periods, Oracle
Inventory User's Guide.
Context: This task needs to be performed for each inventory organization.
•
Open Purchasing accounting period. See: Purchasing Periods, page 1-80.
Context: This task needs to be performed for each ledger.
Step 18: Define Subinventory Locations (Optional)
You can define your own subinventory locations such as Inspection, Cold Storage, or
Reject-Disposition. You may not need to perform this step if you have already installed
and set up Oracle Inventory. See: Defining Subinventories, Oracle Inventory User's Guide.
Context: This step needs to be performed for each inventory organization.
Step 19: Define Cross-Reference Types (Optional)
An example of a cross-reference type is one used to cross-reference an item number to
the part number that the supplier uses. See: Defining Cross-Reference Types, Oracle
Inventory User's Guide.
Step 20: Define Taxes (Optional)
Define taxes and assign them recovery rates or rules. You may not need to perform this
step if you have already installed and set up Oracle Payables or performed a
1-12 Oracle Purchasing User's Guide
common-applications setup. See: Setting Up Taxes, Oracle E-Business Tax User Guide or
refer to the Oracle E-Business Tax Implementation Guide.
Default: If you skip this step, there will be no tax calculated on a requisition or
purchase order and other tax attributes cannot be selected/defaulted.
Step 21: Define Payment Terms (Optional)
If you're also setting up Oracle Payables, you may already have performed this step
when you set up Payables. You can set up payment terms such as 1/10 Net 30, which
indicates that you get a 1% discount if you pay within 10 days and the invoice is due in
30 days.
See: Payment Terms, Oracle Payables User's Guide.
Step 22: Set Up Approval Information
All approvers must be employees and must have a logon user name as described in
Step 14 Set Up Personnel, page 1-11.
Note: Even offline approvers must have a user name. An offline
approver is someone who approves Purchasing documents without
logging on to Oracle Applications and using the Notifications
Summary window. To set up offline approvers, see: Offline Approvers,
page 2-38. You can set up offline approvers at any time, as long as user
names have been assigned to all approvers and Workflow has been set
up.
Once all approvers have been set up as employees and set up with user names,
complete your approval setup as follows:
Context: This step needs to be performed for each operating unit.
•
Define approval groups. See: Defining Approval Groups, page 1-20. (Required)
•
Assign approval groups. See: Assigning Approval Groups, page 1-23. (Required)
•
Fill employee hierarchy after defining position approval hierarchies. See: Fill
Employee Hierarchy Process, page 12-6. If you are using position approval
hierarchies, you must run the Fill Employee Hierarchy process. (Optional)
•
Define document types. See: Defining Document Types, page 1-66. (Required with
defaults)
Default: Each Purchasing document (such as a Standard Purchase Order, Blanket
Purchase Agreement, Quotation, or Requisition) comes with standard defaults.
Update these defaults to meet your security and approval needs.
Step 23: Define Lookups and Classes
This step involves the following tasks:
Setting Up 1-13
•
Define Purchasing lookups. See: Defining Lookup Codes, page 1-54. (Required
with defaults)
Default: An example of a default lookup code that Purchasing provides is a Price
Type of Fixed. See the section referenced above for a list of the other defaults that
Purchasing provides.
•
Define inspection codes. See: Defining Quality Inspection Codes, page 1-56. (
Optional)
Default: If you skip this task, you will not be able to assign inspection codes during
receiving.
•
Define hazard classes. See: Defining Hazard Classes, page 1-52. (Optional)
Default: If you skip this task, you will not be able to assign hazard classes to items
or purchase order lines.
•
Define United Nations (UN) numbers. See: Defining UN Numbers, page 1-53. (
Optional)
Default: If you skip this task, you will not be able to assign UN numbers to items or
purchase order lines.
Step 24: Define Standard Attachments (Optional)
If you do not want to define standard attachments now, you can do so at any time later.
See: Annotating Purchasing Documents, page 1-25. See: Attaching Notes to Purchasing
Documents, page 1-32.
Step 25: Define Purchasing Options (Required)
See: Defining Purchasing Options, page 1-32.
Context: This step needs to be performed for each operating unit.
Step 26: Define Buyers (Required)
Employees who will use Purchasing as buyers or managers must all be defined as
buyers. See: Defining Buyers, page 1-19.
Step 27: Define Items (Optional)
Although you can define items at any point from this step onward, it is recommended
that you set up at least one item to ensure that your flexfields are working properly.
Default: If you skip this step, when you create a requisition or purchase order, you will
be able to enter only an item description, not an item number.
Context: This step needs to be performed for each inventory organization.
This step involves the following tasks.
•
Define items at the master level. See: Master Level vs. Organization Level, Oracle
1-14 Oracle Purchasing User's Guide
Inventory User's Guide and Defining Items, Oracle Inventory User's Guide. Note that
some Inventory fields in the Master Item window, such as the Serial number fields,
are available only if Inventory is fully installed rather than shared.
•
Update the default categories assigned to the items.
•
Assign items at the organization level. See: Updating Organization Level Items,
Oracle Inventory User's Guide.
•
Define item relationships. See: Defining Item Relationships, Oracle Inventory User's
Guide.
Step 28: Define Line Types (Required with defaults)
See: Defining Line Types, page 1-61.
Default: Default line types that Purchasing provides include Goods; Services; and
Outside Processing, if Work in Process is installed.
Step 29: Start the Purchasing Database Administrator (Required)
See: Purchasing Database Administration, page 12-22.
Step 30: Define Financial Options (Required)
See: Defining Financials Options, Oracle Payables User's Guide.
Context: This step needs to be performed for each operating unit.
Step 31: Define Transaction Reasons (Optional)
Transaction reason codes allow you to provide predefined explanations for each
receiving transaction. Examples of transaction reason codes you can define include No
Packlist, Shortage, Recall, or Supplier Error. If you're also setting up Oracle Inventory,
you may already have performed this step when you set up Inventory.
See: Defining Transaction Reasons, Oracle Inventory User's Guide.
Step 32: Define Receiving Options (Required)
You may not need to perform this step if you've already defined receiving options in
Step 6 Define Organizations and Organization Relationships. See: Defining Receiving
Options, page 1-41.
Context: This step needs to be performed for all inventory organizations. Use the
Change Organization function in the Purchasing menu to perform this step for each
inventory organization.
Step 33: Set Up Transaction Managers and Resubmission Intervals
This step involves the following tasks:
•
Start the following transaction managers. See: Administer Concurrent Managers
Window, Oracle Applications System Administrator's Guide. (Required)
Setting Up 1-15
•
•
Receiving transaction manager
•
Document approval manager
Define resubmission intervals for concurrent processes. Contact your system
administrator if you need help with this task. See: Defining Managers and Their
Work Shifts, Oracle Applications System Administrator's Guide. (Optional)
Step 34: Define Suppliers (Required)
You may not need to perform this step if you have already installed and set up Oracle
Payables or performed a common-applications setup. See: Entering Supplier
Information, Oracle iSupplier Portal Implementation Guide.
Step 35: Set Up Workflow Options (Required with defaults)
Purchasing uses Oracle Workflow technology to handle requisition and purchase order
approvals, automatic creation of purchase orders and releases, purchase order changes
(specifically, any additional approvals those changes require), and receipt confirmation.
Workflow runs in the background. It automates these procurement activities whenever
you submit a document for approval, create a requisition, or change a purchase order.
Default: Purchasing provides default functionality in these Workflow-automated
processes. For example, one default functionality is for the automatic document creation
workflow to create purchase orders automatically from approved requisition lines. If
you do not want this default functionality, you can easily change it in the Oracle
Workflow Builder.
For descriptions of the other defaults that Purchasing provides, see: Choosing
Workflow Options, page 1-83.
Step 36: Submit Workflow-Related Processes
Start the following Workflow-related processes, if you haven't already done so in the
previous step:
•
Send Notifications for Purchasing Documents process. See: Send Notifications for
Purchasing Documents, page 12-34. (Required)
•
Workflow Background Engine. Whether you need to submit this process depends
on the options you chose or the defaults you accepted as described in the section
Choosing Workflow Options, page 1-83. For instructions on submitting the
Workflow Background Engine, see: To Schedule Background Engines, Oracle
Workflow Guide. (Required with defaults)
Default: If you chose to accept the default Workflow options that Purchasing
provides, you must start the Workflow Background Engine.
Step 37: Define Descriptive Flexfields (Optional)
If you do not want to define descriptive flexfields now, you can define them at any
1-16 Oracle Purchasing User's Guide
time. See: Planning and Defining Descriptive Flexfields, Oracle Applications Flexfields
Guide.
Step 38: Set Up Automatic Sourcing (Optional)
You can set up Purchasing to automatically default source document information from
a purchase agreement or catalog quotation onto a requisition or purchase order line for
a particular item and supplier. Or you can default just a supplier and optionally a
supplier site. See: Setting Up Automatic Sourcing, page 5-27.
You can set up automatic sourcing now or at any time on an ongoing basis.
Step 39: Perform Additional System Administrator Setup
This step involves the following tasks:
•
Define custom menus. (Optional)
•
Define new responsibilities based on your business and security needs. See: Oracle
Applications System Administrator's Guide, Oracle Applications System
Administrator's Guide. (Optional)
•
Define user names. Purchasing users must have user names, and the user names
must be linked to an employee name. See: Users Window, Oracle Applications System
Administrator's Guide. (Required)
•
Define printers if you haven't already. See:Setting Up Your Printers, Oracle
Applications System Administrator's Guide. (Optional)
Step 40: Define Manufacturing System and User Profiles (Required)
See: Setting User Profile Options, Oracle Applications System Administrator's Guide. See:
Common User Profile Options, Oracle Applications System Administrator's Guide. See:
Profile Options in Purchasing, page C-1.
Context: This step needs to be performed for each operating unit.
Defining Locations
Use the Locations window to define ship-to, receiving, and other location information
for Purchasing documents.
To set up locations for Purchasing:
1.
Navigate to the Locations window.
2.
For information on the Name, Description, Inactive Date, Global, and Address
Details fields, follow the instructions in Setting Up Locations, Oracle HRMS
Enterprise and Workforce Management Guide or see the online help for the Location
window.
Setting Up 1-17
3.
Fill in information in the Shipping Details tabbed region.
Note: Selecting the check boxes means that you are making the
location Name a valid location in the list of values on a Purchasing
document. For example, selecting Ship-To Site makes the location
Name a valid choice in the list of values for the Ship-To field on a
purchase order header. Note that if you define a default Ship-To or
Bill-To Location in the Supplier-Purchasing region of the Financials
Options window for your organization, that is the location that
defaults onto your purchase orders. But if you wanted to change
that default, the location Name that you define here and enable as a
Ship-To or Bill-To site is available in the list of values for you to
choose from in the Ship-To or Bill-To fields.
Contact: Optional contact name for the location Name.
Ship-To Location: Usually the same as the location Name. You could select a
separate, previously defined Ship-To Location-for example, if you wanted to create
a location Name, Office A, and specify Receiving Dock A as its Ship-To Location.
Note, however, that once you specify a separate Ship-To Location, you can no
longer enable the location Name as a Ship-To Site. In this example, Receiving Dock
A is the ship-to site for Office A; therefore, Office A itself cannot also be the ship-to
site.
Ship-To Site: Select this option to make the location Name a valid ship-to
organization on a purchase order or requisition.
1-18 Oracle Purchasing User's Guide
Receiving Site: Select this option to make the location a valid receiving Location
when creating a receipt or receiving transaction.
Office Site: Select this option to indicate that this location Name is an office site, such
as a field office.
Bill-To Site: Select this option to make the location Name a valid bill-to site. The
Bill-To Site, which is used by Payables, is specified on a purchase order header.
Internal Site: Select this option to make the location a valid internal ship-to location
when creating an internal requisition.
4.
Optionally fill in information in the Other Details tabbed region.
Inventory Organization: Select an inventory organization within which this location
will be available in the list of values on a Purchasing document. By selecting no
inventory organization, this location becomes available on Purchasing documents
in all organizations.
EDI Location: If you use Electronic Data Interchange (EDI) to receive Advance
Shipment Notices (ASNs) or ASNs with billing information (ASBNs), enter a
defined location. This location should match the ship-to location specified on an
ASN or ASBN. See: Advance Shipment Notices (ASNs), page 9-15.
5.
If you want to use the Extra Information button to enter additional information
required by your business, see: Entering Extra Information, Oracle HRMS Enterprise
and Workforce Management Guide or see the online help for that window.
Defining Buyers
Use the Buyers window to define and maintain your buyers. Buyers can review all
requisitions using the Requisitions window, and only buyers can enter and autocreate
purchasing documents. See the Document Types window for rules governing access to
documents. See: Defining Document Types, page 1-66.
Prerequisites
❒ • Define employees before performing this step. See the online help for the Enter
Person window for details.
•
Define locations before performing this step. See: Defining Locations, page 1-17.
To define buyers:
1.
Navigate to the Buyers window.
2.
If you are defining a new buyer click Add Buyer in the Buyers window. To enter
Setting Up 1-19
changes to an existing buyer use the Search region to enter the buyer's name in the
Buyer field, the category assigned to the buyer in the Category field, or the buyer's
ship-to location in the Ship-to field. Once you have completed one or all of these
fields click Go.
3.
Enter the Name of an employee who you want to define as a buyer. If the name you
want does not appear in the list of values, use the Enter Person window to enter
that person as an employee.
4.
Enter the default purchasing Category of the goods the buyer typically orders.
Purchasing defaults this value in the Category field when you are autocreating
documents. See: Defining Categories, Oracle Inventory User's Guide.
5.
Enter the name of the ship-to location for which the buyer typically creates
purchase orders. Purchasing defaults this value when you are autocreating
documents.
6.
Enter the Start Date that you want to initiate the responsibilities for a buyer. The
default is the current date.
7.
Enter the End Date after which the employee is no longer a buyer.
8.
Click Save.
Defining Approval Groups
Use the Approval Groups window to define and update approval groups. Once you
have defined an approval group here, you can then use it to assign approval functions
to jobs or positions in the Approval Assignments window. You cannot delete an
approval group that is used in an active assignment. You can enable or disable the
entire approval group, or you can enter inactive dates for individual approval rules.
1-20 Oracle Purchasing User's Guide
Prerequisites
❒ • Define employees before performing this step. See the online help for the Enter
Person window for details.
•
Review how your choices in this window affect your approval routing. See:
Defining Approval Authorization Rules, page 2-13.
To define approval groups:
1.
Navigate to the Approval Groups window.
2.
Select the Operating Unit for this approval group.
3.
Enter the Name of the approval group. You can change existing approval group
names, but names must be unique.
4.
Select Enabled to permit the approval group to be assigned to a position/job in the
Approval Assignments window.
5.
Choose one of the following Objects:
Account Range - (Required) For this option, you enter the accounting flexfields for
the Low and High Values. Include Type rules identify accounts that you want to be
included on the document. Exclude Type rules identify accounts that you do not
want on the document. If you do not enter a rule for an account, the default is to exclude
the account. If you enter only an Exclude Type rule, Purchasing does not automatically
Setting Up 1-21
include everything else.
For example, entering only the following account includes account 01.000.0451 and
excludes all else:
Account Range
Include
01.000.0451
01.000.0451
Entering only the following account excludes all accounts:
Account Range
Exclude
01.000.0451
01.000.0451
Entering only the following two accounts includes all accounts except 01.000.0451:
Account Range
Include
00.000.0000
ZZ.ZZZ.ZZZZ
Exclude
01.000.0451
01.000.0451
The Inactive Date is optional, but you must enter an Amount Limit for Include Type
rules.
Document Total - (Required) The document total refers to the monetary limit on an
individual document. For this option, the Type defaults to Include, and you can
enter only the Amount Limit (required) and the Inactive Date (optional).
Item Category Range - For this option, you enter the purchasing category flexfields
for the Low and High Values. Include Type rules identify manufacturing categories
that you want to be included on the document. Exclude Type rules identify
categories that you do not want on the document. If you do not define a rule for a
category, the default is Include. The Inactive Date is optional, but you must enter an
Amount Limit for Include Type rules.
Item Range - For this option, you enter the item flexfields for the Low and High
Values. Include Type rules identify items that you want to be included on the
document. Exclude Type rules identify items that you do not want on the
document. If you do not define a rule for an item, the default is Include. The
Inactive Date is optional, but you must enter an Amount Limit for Include Type
rules.
Location - The location refers to the deliver-to location on a requisition as well as the
ship-to location on purchase orders and releases. Include Type rules identify
locations that you want to be included on the document. Exclude Type rules
identify locations that you do not want on the document. For this option, you enter
the location in the Low Value field. If you do not define a rule for a location, the
default is Include. The Inactive Date is optional, but you must enter an Amount
1-22 Oracle Purchasing User's Guide
Limit for Include Type rules.
6.
Select the rule Type: Include or Exclude indicates whether to allow objects that fall
within the selected range.
7.
Enter the Amount Limit. This is the maximum amount that a control group can
authorize for a particular object range. This field is required only for Include type
rules.
8.
Enter the Low Value. This is the lowest flexfield (accounting, purchasing category,
or item) in the range pertinent to this rule. When the object is Location, enter the
location. You cannot enter this field when the object is Document Total.
9.
Enter the High Value. This is the highest flexfield (accounting, purchasing category,
or item) in the range pertinent to this rule. You cannot enter this field when the
object is Location or Document Total.
10. Enter the Inactive Date on which Purchasing will no longer use this rule in
formulating the group.
11. Save your work.
Related Topics
Defining Approval Assignments, page 1-23
Approval Authorization Rules, page 2-12
Defining Approval Authorization Rules, page 2-13
Using Approval Assignments, page 2-15
Assigning Approval Groups
Use the Assign Approval Groups window to assign approval groups and approval
functions to positions or jobs. If you are using approval hierarchies (the Use Approval
Hierarchies option in the Financials Options window is enabled), you must first use the
Approval Groups window to establish rules for your approval groups. Then you can
assign approval groups to positions in this window. When you are not using approval
hierarchies, you can use this window to assign approval groups and approval functions
to jobs within your organization.
Prerequisites
❒ • Define approval groups before performing this step. See: Defining Approval
Groups, page 1-20.
Setting Up 1-23
•
Review how your choices in this window affect your approval routing. See:
Using Approval Assignments, page 2-15.
To assign approval groups:
1.
Navigate to the Assign Approval Groups window.
2.
Select the Operating Unit for this approval group assignment.
3.
Enter the Position for which you want to assign approval groups and approval
functions. If the Use Approval Hierarchies option in the Financial Options window
is not enabled, this field is not applicable.
4.
If you are not using approval hierarchies, enter the Job.
5.
Select the approval function you want to assign to this position or job.
6.
Enter the approval group that you want to assign to the selected position or job. The
list of values includes only enabled approval groups with at least one approval rule.
See: Defining Approval Groups, page 1-20.
7.
Enter the Start Date and End Date for the assignment.
Important: The start and end dates that you assign here are the
effectivity dates of the assignment. When the system date reaches
1-24 Oracle Purchasing User's Guide
the end date of the assignment, the rule no longer applies. There is
no explicit warning that the rule is no longer in effect.
8.
Save your work.
Related Topics
Defining Financials Options, Oracle Payables User's Guide
Representing Jobs and Positions, Oracle HRMS Enterprise and Workforce Management
Guide
Defining Approval Groups, page 1-20
Approval Authorization Rules, page 2-12
Defining Approval Authorization Rules, page 2-13
Using Approval Assignments, page 2-15
Annotating Purchasing Documents
Purchasing provides you with powerful features to create attachments for your
purchasing documents. You can provide unlimited text, specify who can review the
attachments, and print text attachments onto your purchase orders. You can even
modify existing attachments to personalize your messages for different suppliers. You
can easily provide all the information you need when you create your purchasing
documents. You should be able to:
•
Provide unlimited text attachments on your purchasing documents
•
Designate the appropriate people who can review the attachments
•
Print text attachments on your purchase orders and RFQs for the supplier to review
•
Reuse attachments on different documents
•
Copy and modify existing attachments to speed up data entry
•
Copy attachments from your requisitions to your RFQs and purchase orders
•
Provide standard attachments for an item that you can reference whenever you
create a purchasing document for that item
Setting Up 1-25
Major Features
Copy
You can copy an existing long attachment so that you can customize it without having
to retype the entire attachment. This feature is particularly useful if you have a lengthy
document that you want to modify for different suppliers.
Usage
You can indicate who has access to your long attachments. You indicate whether the
attachment is for an approver, receiver, buyer, or supplier. Or you can indicate that you
want the attachment for internal use only. You can also enter attachments that will be
displayed during invoice matching in Accounts Payable. To understand how to enter
and review attachments for different usages, see: Managing Attachments, page 1-27.
Using Brief Notes
You can provide brief notes on most of your documents. Unlike attachments, you
cannot copy notes from one document to the next. You should provide notes when the
attachment contains no more than 240 characters, you do not want to reuse the note on
other documents, or you do not want to format the note. Otherwise, you should use
attachments to provide additional text for your documents.
Using Attachments
You can provide as much text as you want for your documents. You can provide
attachments at the header and line level for the following documents:
•
Requisitions
•
Standard and Planned Purchase Orders (also shipment level)
•
Blanket Purchase Agreements
•
Releases (header and shipment levels)
•
Contract Purchase Agreements (header level only)
•
RFQs
•
Quotations
•
Receipts (line level only)
•
Receiving Transactions (line level only)
You can also provide attachments for your items. When you create an attachment, you
designate whether you want the attachment to be available to the supplier, receiver,
1-26 Oracle Purchasing User's Guide
approver, or buyer. Or, you can designate that you want the attachment to appear to
anyone who has access to that particular document on-line. To understand how to
create attachments for different usages, see: Managing Attachments, page 1-27.
Related Topics
Attaching Notes to Purchasing Documents, page 1-32
Managing Attachments, page 1-27
Managing Attachments
You can provide attachments for your items. When you reference an item on a
purchasing document, Purchasing makes the corresponding item attachments available
for you to review. Purchasing also prints text attachments on your purchase orders and
RFQs if you choose Supplier as the usage when you create the item attachment.
Requisition and Standard Purchase Order Attachments
You can create attachments for your requisition headers and lines. When you
AutoCreate a requisition line onto a purchase order, Purchasing copies the attachments
from the requisition header and line to the corresponding purchase order line. As a
buyer, you can provide additional attachments to a purchase order even after you
AutoCreated it from a requisition.
If the purchase order line references more than one requisition line, Purchasing copies
only the header and line attachments from the requisition line that is the basis for the
purchase order line. For example, if you place multiple requisition lines onto a single
purchase order line, Purchasing copies only the requisition header and line attachments
from the line where you use the Copy option.
For each requisition line copied, the corresponding header level attachment is copied.
For example, you have a requisition with 3 lines and they have 3 line level attachments
and a header level attachment. You then AutoCreate this requisition to a purchase order
with 3 lines, each of the 3 lines in the purchase order would have the specific line
attachment and the common header attachment.
Setting Up 1-27
Blanket Purchase Agreement and Release Notes
You can create long attachments for your blanket purchase agreements at the header
and line level. You can review the blanket purchase agreement header attachment on
the corresponding release header, and you can enter new attachments on the release
header. You can also review the blanket agreement line attachment on the
corresponding release shipment, and you can enter new attachments for the shipments.
Purchasing does not copy requisition attachments to a blanket agreement or release
when you AutoCreate a release.
1-28 Oracle Purchasing User's Guide
Requisition, RFQ, and Quotation Notes
Similar to standard purchase orders, Purchasing copies requisition header and line
attachments to the corresponding RFQ line. Purchasing copies all RFQ header and line
attachments to the corresponding quotation header and line when you copy a quotation
using the Entire RFQ or RFQ Header and Lines options in the Copy Document window.
Purchasing copies only the attachments from the RFQ header to the quotation header
when you copy a quotation using RFQ Header Only. If you choose the Selective option
when copying a quotation, Purchasing copies the RFQ header attachments to the
quotation header and lets you decide which line attachments you want to copy to the
quotation line.
Setting Up 1-29
Printing Attachments
You can print text attachments on your purchase orders and RFQs. To print an
attachment on a purchase order or an RFQ, simply designate Supplier as the usage for
the attachment. Purchasing prints these attachments on the corresponding purchase
order or RFQ. Purchasing prints as much as possible on each page and continues
printing on the next page where applicable.
Purchasing also prints item attachments and attachments with usage Receiver on the
Receipt Traveler.
Usages in Attachments
You can enter unlimited attachments on any requisition, purchase order, quotation, or
request for quotation (RFQ). You decide which standard attachments to print on your
documents and reports. You can easily combine the one-time attachments you enter for
a specific document with predefined standard attachments. You can even create a new
attachment directly from an existing attachment or use attachments to enter long
descriptions for the items you purchase.
Understanding Usages
Purchasing provides you with a list of predefined usages you can use depending on the
type of document you create. The following list shows the usages available for each
document you can create.
•
Supplier
You can use this usage on purchase orders, RFQs, quotations, requisitions, and for
1-30 Oracle Purchasing User's Guide
items. Purchasing prints all Supplier text attachments on your documents.
•
Receiver
You can use this usage on purchase orders, quotations, RFQs, receipts, requisitions,
and for items. Purchasing displays these attachments to the receiver in the receiving
windows and prints text attachments on the Receipt Traveler.
•
Approver
You can use this usage on requisitions. Purchasing displays these attachments to
the approvers when they approve your requisitions.
•
Buyer
You can use this usage on requisitions. Purchasing displays these attachments to
the buyers when they create purchase orders from your requisitions.
•
[Document] Internal
You can enter these attachments only on a specific [Document]. Reference this
usage when you want to enter information specific to a purchase order, quotation,
RFQ, receipt, requisition, or item. Purchasing does not print or display these
attachments outside the window you use to enter the document. RCV Internal
attachments, however, are printed on the Receipt Traveler.
•
Payables
You can use this usage on purchase orders. Purchasing displays these attachments
during invoice matching in Accounts Payable.
Defining a Standard Attachment
To define a standard attachment, you simply provide the usage for this attachment, a
meaningful and unique name, and the attachment itself. You can also provide a start
date and end date to control the availability of this attachment. Purchasing defaults
today's date as the start date for standard attachments. You can easily inactivate an
attachment by entering an end date for it. You cannot use a standard attachment on a
document after the end date has expired. You define standard attachments in the
Documents window. See: Using Notes, Oracle Common Application Components.
Referencing a Standard Attachment
After you define your standard attachments, you can reference them on your
documents. You can reference as many standard attachments to your documents as you
want.
Related Topics
Attaching Notes to Purchasing Documents, page 1-32
Setting Up 1-31
Attaching Notes to Purchasing Documents
You can attach files, such as notes, comments, spreadsheets, and graphics to your
application data.
For example, in Purchasing, you can attach files to purchasing documents.
An attached file may include comments, for example if the buyer would like to be
notified when an item fails inspection.
To attach notes to purchasing documents:
1.
Choose the Attachments icon.
Related Topics
About Attachments, Oracle Applications User's Guide
Working With Attachments, Oracle Applications User's Guide
Annotating Documents, page 1-25
Managing Attachments, page 1-27
Defining Purchasing Options
Use the Purchasing Options window to define default values and controls for functions
throughout Purchasing. You can often override purchasing options when you are
creating documents.
You can define specific categories of options:
•
Document Control
Define control options, such as the receipt close point. See: Document Control
Options, page 1-33.
•
Document Defaults
Define default options, such as the minimum release amount. See: Document
Default Options, page 1-37.
•
Receipt Accounting
Define the accrual method and the accounts which Purchasing will use as for
receipt accounting. See: Receipt Accounting Options, page 1-39.
•
Document Numbering
Define the numbering method, numbering type, and next number for each of your
documents. See: Document Numbering Options, page 1-40.
1-32 Oracle Purchasing User's Guide
To define Purchasing Options:
1.
Navigate to the Purchasing Options window.
2.
Select the Purchasing Options Operating Unit.
Document Control Options
3.
Enter the Price Tolerance Percentage. This is the percentage by which the
autocreated purchase order line price cannot exceed the requisition line price. If you
select Enforce Price Tolerance Percentage, you can create, but not approve,
purchase orders for which this tolerance is exceeded. There is no restriction on how
much a price can decrease, but changes to the line (quantity or unit of measure for
example) may cause the price tolerances to be exceeded.
Note: If the price on a requisition line is zero, then price tolerance
checks do not apply.
Setting Up 1-33
4.
Enter the Price Tolerance Amount. This is the dollar amount by which the
autocreated purchase order line price cannot exceed the requisition line price.
Note: If you set both price tolerance percentage and amount values,
the system will apply the more restrictive of the two.
5.
Select one of the following values for the Enforce Full Lot Quantity option:
None: The requisition quantity is not rounded to the lot quantity.
Automatic: The requisition quantity is forced to the rounded quantity.
Advisory: An advisory message suggesting rounding and a suggested rounding
quantity are displayed, but you can override.
Enforce Full Lot Quantity is used for rounding quantities on Internal Requisitions,
for example:
•
System Options Enforce Full Lot Quantities = Yes
•
Items Rounding Factor = 75%
•
Items Unit of Issue = DZ
•
Unit of Measure on Internal Requisition = Each
If the user enters 6 Each on the Internal Requisition, the quantity will be rounding
to 0. If the user enters 11 Each on the Internal Requisition, the quantity will be
rounded to 12 Each.
See: Overview of Requisitions, page 3-1.
6.
Select the Receipt Close Point, which is when the shipment is closed for receiving:
Accepted (passed inspection), Delivered, or Received. Note that you need to set the
receipt close tolerance percentage in the Default Options window. See: Defining
Default Options, page 1-37.
7.
The Cancel Requisitions options apply only to requisitions from which purchase
orders were autocreated. Select one of the following:
Always: When canceling the purchase order, Purchasing also cancels the requisition.
Never: When canceling the purchase order, Purchasing does not cancel the
requisition, so it is again available for inclusion on a purchase order.
Optional: When canceling the purchase order, you are given the option to cancel the
requisition. See: Controlling Documents, page 2-57.
8.
Select a Security Hierarchy, which is a position hierarchy from the Position
Hierarchy window. When the Security Level is set to Hierarchy for a document in
the Document Controls window, this position hierarchy governs access security for
1-34 Oracle Purchasing User's Guide
the document.
Important: This field is enterable only when the form is accessed
from the Purchasing menu.
9.
If you have selected Gapless Invoice Numbering for the entire business unit or for a
specific supplier site, enter the SBI Buying Company Identifier. This is an identifier
included in the invoice number created by the Pay on Receipt process, as well as for
debit memos resulting from return receipts, and invoices resulting from retroactive
purchase price adjustments. This portion of the invoice number identifies the
buying business unit and is included as follows:
<Prefix>-<SBI Buying Company Identifier>-<Selling Company
Identifier>-<Invoice Type Code>-<Seq #>
Where:
•
Prefix is specified by the profile option PO: ERS Invoice Number Prefix. (optional)
and only applies to invoices resulting from the Payment on Receipt process.
See: Profile Options in Purchasing, page C-1. See: Payment on Receipt, page
12-14.
•
SBI Buying Company Identifier is a unique code for the operating unit. This is
defined as a Purchasing Option and need not be unique.
•
Selling Company Identifier is a code for the supplier site. It is defined in the
supplier site window. The Selling Company Identifier does not need to be
unique within the same supplier; however, it must be unique across suppliers.
•
Invoice Type Code:
•
•
ERS (Evaluated Receipt Settlement) for Pay on Receipt invoices
•
RTS (Return to Supplier) for Debit Memos
•
PPA (Purchase Price Adjustment) for invoices resulting from a retroactive
price adjustment
Seq# is a gapless sequence number defined for each buying company/selling
company/invoice type combination when Gapless Invoice Numbering is
enabled.
All segments of the gapless invoice number are separated with a hyphen.
10. The PO Output Format selection defines the output format for purchase orders sent
to the supplier using print, e-mail, or fax. It also enables functionality related to that
output format.
Setting Up 1-35
PDF: Purchase orders are output in the Adobe Portable Document Format (PDF).
You can view the purchase order fully formatted from the Enter Purchase Order
window, Purchase Order Summary window, Change History page, Oracle
iProcurement, and Oracle iSupplier Portal. You can also communicate the purchase
order to the supplier from the Purchase Order Summary window.
Text: Purchase orders are output in text.
Note: Your ability to communicate the purchase order to the
supplier from the Approval window remains the same with either
setting. Only the formatting of the output changes.
See: Setup Purchase Order Communication to Suppliers, page 1-74
11. If the PO Output format is PDF, enter the Maximum Attachment Size. This
indicates the maximum file size, in megabytes, that is allowed as a File type
attachment to an e-mailed purchase order.
See: About Attachments, Oracle Applications User's Guide.
12. Select Enforce Price Tolerance Percentage if you want Purchasing to enforce the
price tolerance percentage.
13. Select Enforce Price Tolerance Amount if you want Purchasing to enforce the price
tolerance amount.
14. Select Display Disposition Messages if you want to see any disposition messages
defined against inventory items when they are placed on requisitions.
15. Select Notify If Blanket PO Exists if you want to be notified of existing blanket
purchase agreements when you create a requisition, purchase order, or blanket
purchase agreement line for the item. If you sourced the item, you see the following
message: Blanket purchase order [number] already exists for this item. Your
requestors can directly create a release for the blanket purchase agreements instead
of creating a requisition or purchase order if you allow your requestor to enter
releases. See: Viewing and Responding to Notifications, page 2-29.
16. You can define for each item whether you allow updating of the item description
during the creation of requisition, RFQ, quotation, or purchase order lines. This
update affects only the line you are creating. Select Allow Item Description Update
if you want Yes to be the initial default of the Allow Description Update attribute
when you are defining a new item.
17. Select Enforce Buyer Name to enforce entry of only your name as the buyer on
purchase orders. Otherwise, you can enter the name of any active buyer. See:
Defining Buyers, page 1-19.
1-36 Oracle Purchasing User's Guide
18. Select Enforce Supplier Hold if you do not want to be able to approve purchase
orders created with suppliers that are on hold. Use the Suppliers window to place
suppliers on hold. See: Suppliers, Oracle iSupplier Portal Implementation Guide.
Note: Even if you put a supplier on hold in the Suppliers window,
you can still approve a purchase order to that supplier if Enforce
Supplier Hold is not checked here.
19. Select Gapless Invoice Numbering to enable gapless (no breaks in numbering)
invoice number generation for your buying organization during Pay on Receipt
processing. See: Payment on Receipt, page 12-14.
Note that you can enable gapless SBI numbering for the entire operating unit with
this setting or limit it to a supplier site(s) in the Supplier Site window.
20. Select RFQ Required to require an RFQ for an item before you can autocreate the
corresponding requisition line onto a purchase order. You can override this value
for each item or requisition line.
Document Default Options
21. Select one of the following Requisition Import Group By options for requisitions
imported through the requisition open interface: All (not grouped), Buyer,
Category, Item, Location, or Supplier. See: Requisition Import Process, page 12-27.
22. Select the default Order Type for internal requisitions.
Important: The Order Type field is visible only if the application
Oracle Order Management is installed.
Order types are defined in Order Management. The order type you choose here is
the type that Purchasing uses to create sales orders from internal requisitions.
23. Select the default Order Source for internal requisitions.
Purchasing defaults and only uses Internal. This is the source OrderImport uses to
transfer internal requisitions from Purchasing to Order Management.
24. Enter the Receipt Close tolerance percentage for your shipments. Purchasing
automatically closes a shipment for receiving if it is within the receiving close
tolerance at the receiving close point. Set the receiving close point in the Control
Options window. You can override this option for specific items and orders. See:
Defining Control Options, page 1-33.
25. Enter the Invoice Close tolerance percentage for shipments. Purchasing
automatically closes a shipment for invoicing if it is within the invoicing close
tolerance at billing, when Payables matches invoices to purchase orders or receipts.
Setting Up 1-37
You can override this option for specific items and orders. See: Defining Control
Options, page 1-33.
26. Enter the Quote Warning Delay. This is the number of days before a quotation
expires that you want to receive an expiration warning. When a quotation is due to
expire within the number of days you provide here, you receive the following
message in the Notifications Summary window: Quotations active or approaching
expiration: [number]. See: Viewing and Responding to Notifications, page 2-29.
27. Select a default Line Type for requisition, RFQ, quotation, and purchase order lines.
When you create any of these documents, the line type is part of your item
information. You can override the line type for each document line. See: Defining
Line Types, page 1-61.
Important: This field is enterable only when the form is accessed
from the Purchasing menu.
28. Select the currency Rate Type that defaults on requisitions, purchase orders, RFQs,
and quotations. If the Rate Type is User, you can override this default for each
document line. If either your functional currency (defined in your ledger) or your
transaction currency (the currency you enter in a purchasing document window) is
Euro (the European Monetary Unit currency), and the other is another European
currency, Purchasing defaults in the appropriate conversion Rate Type, Rate, and
Rate Date. See: Defining Conversion Rate Types, Oracle General Ledger User's Guide.
29. Select one of the following options for Match Approval Level:
Two-Way: Purchase order and invoice quantities must match within tolerance before
the corresponding invoice can be paid.
Three-Way: Purchase order, receipt, and invoice quantities must match within
tolerance before the corresponding invoice can be paid.
Four-Way: Purchase order, receipt, inspection, and invoice quantities must match
within tolerance before the corresponding invoice can be paid.
See: Receiving Controls, Options, and Profiles, page 9-7.
Note: The Invoice Match Option in the purchase order Shipments
window and the Match Approval Level here are independent
options. The Invoice Match Option determines whether Payables
performs invoice matching to the purchase order or the receipt.
You can perform whichever Invoice Match Option you want on a
shipment regardless of the Match Approval Level you choose here.
30. Select the Price Break Typethat defaults on blanket purchase orders:
1-38 Oracle Purchasing User's Guide
Cumulative: Price breaks apply to the cumulative quantity on all release shipments
for the item.
Non-cumulative: Price breaks apply to quantities on individual release shipments for
the item.
31. Select the Price Type that defaults on purchase orders. Use the Lookup Codes
window to define price types. See: Defining Lookup Codes, page 1-54.
32. Enter the Minimum Release Amount that defaults on blanket, contract, and planned
purchase orders. This amount is in your functional currency. See: Overview of
Multi-Currency Accounting, Oracle General Ledger User's Guide.
Receipt Accounting Options
33. Choose one of the following Accrue Expense Items options:
At Receipt: Accrue expense items upon receipt. You can override this flag in the
Shipment Details window when you are entering purchase orders and releases.
Period End: Accrue expense items at period end.
Important: When using Cash Basis Accounting, you should set this
option to Period End, but you will not normally run the Receipt
Accrual - Period End process.
34. For Accrue Inventory Items, you currently have only one choice: On Receipt.
35. An offset is an accounting entry that is created to offset, or balance, another
accounting entry. Automatic Offset Method is the method used to automatically
create the account for the offsetting transaction. Here the offsetting account is the
Receiving Inspection Account, which offsets the Accrual Account transaction at the
time of receipt and the Charge Account at the time of delivery. The Automatic
Offset Method controls which of the two accounts are used as the base account and
which as the overlay account, as well as which segment is used to overlay the base
account segment.
Choose one of the following Automatic Offset Method options:
None: No substitutions are made and the Receiving Inspection account for the
destination organization is used.
Balancing: The base account is the Receiving Inspection Account for the destination
organization and the balancing segment is overlaid with the balancing segment of
the Charge Account.
Account: The base account is the Charge Account and the account segment is
overlaid with the account segment of the Receiving Inspection Account.
Setting Up 1-39
Note: The Automatic Offset Method is not supported with
retroactive pricing, shared services, and drop shipment flows.
36. Enter the default Expense AP Accrual Account.
Document Numbering Options
37. Select the [Document] Number Entry method for RFQ, quotation, purchase order,
and requisition numbers:
Automatic: Purchasing automatically assigns a unique sequential number to each
document when you create the document.
Manual: You provide a document number manually when you enter the document.
Important: You can change the method of entering document
numbers at any time. If you originally allow manual entry and
switch to automatic entry, make sure to enter a Next Number that
is higher than the highest number you assigned manually.
38. Select the [Document] Number Type you want Purchasing to use for RFQ,
quotation, purchase order, and requisition numbers: Numeric or Alphanumeric.
Important: If you choose Automatic document number entry, you
can generate only numeric document numbers, but you can still
import either numeric or alphanumeric values from another
purchasing system.
Important: If you import purchasing documents from a foreign
system that references alphanumeric numbers, you must choose
Alphanumeric as your number type, regardless of your numbering
method.
If you choose Manual document number entry, you can choose numeric or
alphanumeric numbers. You can change the document number type from Numeric
to Alphanumeric whenever you want. You can change the document number type
from Alphanumeric to Numeric only if all your current document numbers are
numeric.
Important: The ordering of numeric values in lists of values can
appear random when you use the Alphanumeric number type. If
you are using Alphanumeric numbering, consider entering all
numeric values with the same number of digits. For example, if you
1-40 Oracle Purchasing User's Guide
can assume all numeric values contain six digits, you should enter
the first value as 000001.
Important: You should setup the numbering type to be the same in
all operating units in which you are planning to create and enable
global agreements.
39. Enter the Next Number. This is the starting value you want Purchasing to use for
generating unique sequential document numbers if you choose Automatic
document number entry. Purchasing displays the next document number that will
be used for a new document when you create the new document. You cannot enter
this field if you choose Manual document number entry.
If you use Master Scheduling/MRP, Inventory, Work in Process, or any non-Oracle
system to create requisitions automatically, you must also let Purchasing number
the corresponding requisitions automatically.
40. Click Save.
Defining Receiving Options
Use the Receiving Options window to define options that govern receipts in your
system. Most of the options that you set here can be overridden for specific suppliers,
items, and purchase orders. See: Receiving Controls, Options, and Profiles, page 9-7.
To define receiving options:
1.
Navigate to the Receiving Options window.
Setting Up 1-41
2.
Select your Inventory Organization.
Receiving Options
3.
Enter the Enforce Ship To location option to determine whether the receiving
location must be the same as the ship-to location. Choose one of the following
options:
None - The receiving location may differ from the ship-to location.
Reject - Purchasing does not permit receipts when the receiving location differs from
the ship-to location.
Warning - Purchasing displays a warning message but permits receipts when the
receiving location differs from the ship-to location.
4.
Choose an action for ASN Control. This field determines how Purchasing handles
receiving against purchase order shipments for which an Advance Shipment Notice
(ASN) exists. Choose one of the following options.
None - Purchasing does not prevent or warn you when you try to receive against a
purchase order shipment for which an ASN exists.
Reject - Purchasing gives you a message and prevents you from receiving against a
purchase order shipment for which an ASN exists.
Warning - Purchasing gives you a message informing you that an ASN exists for the
purchase order shipment and lets you decide whether to receive against the
purchase order shipment or its ASN.
1-42 Oracle Purchasing User's Guide
5.
Enter the maximum acceptable number of Days Early and Days Late for receipts.
6.
Enter an action for Receipt Days Exceed-Action. This field determines how
Purchasing handles receipts that are earlier or later than the allowed number of
days selected above. Choose one of the following options:
None - Receipts may exceed the allowed days early or late.
Reject - Purchasing does not permit receipts outside the selected number of days
early or late.
Warning - Purchasing displays a warning message but permits receipts outside the
selected number of days early or late.
7.
Enter the maximum acceptable Over Receipt Tolerance percentage.
8.
Enter the Action for Over Receipt Action. This field determines how Purchasing
handles receipts that exceed the quantity received tolerance. Choose one of the
following options:
None - Receipts may exceed the selected tolerance.
Reject - Purchasing does not permit receipts that exceed the selected tolerance.
Warning - Purchasing displays a warning message but permits receipts that exceed
the selected tolerance.
9.
Enter the default RMA Receipt Routing that you assign goods: Direct Delivery,
Standard Receipt, or Inspection Required.
10. Enter the default Receipt Routing that you assign goods: Direct Delivery, Standard
Receipt, or Inspection Required. You can override this option at receipt time by
changing the destination type for specific suppliers, items, and orders if the RCV:
Allow Routing Override user profile is set to Yes. See: Profile Options in
Purchasing, page C-1.
11. Check Allow Substitute Receipts if you want to receive substitute items in place of
ordered items. You must define substitute items in the Item Relationships window
before you can receive them. You can override this option for specific suppliers,
items, and orders. See: Defining Item Relationships, Oracle Inventory User's Guide.
12. Check Allow Unordered Receipts if you want to receive unordered items. You can
later match the unordered receipts to a purchase order. If you enable this option,
you can override it for specific suppliers and items.
13. Check Allow Express Transactions to enable express deliveries and receipts. See:
Express Receipts and Receiving Transactions, page 9-23.
14. Check Allow Cascade Transactions to enable cascading for receipts and receiving
transactions. See: Cascading Receipts and Receiving Transactions, page 9-23.
Setting Up 1-43
15. Select Allow Blind Receiving if you want blind receiving at your site. Blind
receiving helps you ensure that receivers record the exact amount they receive.
With blind receiving, you cannot see the quantity due or the quantity ordered for
shipments when you receive items. Purchasing ignores all quantity receipt
tolerances to help ensure that you can receive the exact amount the supplier
shipped.
16. Select Validate Serial Numbers on RMA Receipts if you want serial numbers
validated. Restricts serial numbers displayed in the list of serial numbers for an
RMA line.
17. Choose the Receipt Number Generation method for receipt numbers
Automatic: Purchasing automatically assigns a unique sequential number to each
receipt when you create the receipt.
Manual: You provide a receipt number manually when you enter the receipt.
Purchasing numbers receipts within inventory organizations rather than across
inventory organizations. So, for example, the same receipt number could be used by
different inventory organizations.
Important: You can change the method of entering receipt numbers
at any time. If you originally allow manual entry and switch to
automatic entry, make sure to enter a Next Number that is higher
than the highest number you assigned manually.
18. Choose the Receipt Number Type you want Purchasing to use for receipt numbers:
Numeric or Alphanumeric.
Important: If you choose Automatic receipt number entry, you can
generate only numeric receipt numbers, but you can still import
either numeric or alphanumeric values from another purchasing
system.
Important: If you have any alphanumeric documents in your
system, you must choose Alphanumeric as your number type,
regardless of your numbering method.
If you choose Manual receipt number entry, you can choose numeric or
alphanumeric numbers. You can change the receipt number type from Numeric to
Alphanumeric whenever you want. You can change the receipt number type from
Alphanumeric to Numeric only if all your current receipt numbers are numeric.
Important: The ordering of numeric values in lists of values can
1-44 Oracle Purchasing User's Guide
appear random when you use the Alphanumeric number type. If
you are using Alphanumeric numbering, consider entering all
numeric values with the same number of digits. For example, if you
can assume all numeric values contain six digits, you should enter
the first value as 000001.
19. Enter the Next Receipt Number. This is the starting value you want Purchasing to
use for generating unique sequential receipt numbers if you choose Automatic
receipt number entry. Purchasing displays the next receipt number that will be used
for a new receipt when you create the new receipt. You cannot enter this field if you
choose Manual receipt number entry.
Accounting
20. Enter the accounting flexfield for the default Receiving Inventory Account.
21. Enter the account number for the Retroactive Price Adjustment Account. This is the
account that receiving will use to post an adjusting entry for changes in pricing after
a shipment has been received and accrued. See: Retroactive Price Update on
Purchasing Documents, page 12-31.
22. Enter the account number for the Clearing Account. This is the account that is used
for intercompany receivables in the procuring organization when the receiving
organization is not the same as the procuring organization.
Cost Factors
23. If you have implemented Oracle Advanced Pricing to calculate cost factors, check
Interface to Advanced Pricing.
24. If you have implemented Oracle Transportation Execution to calculate
transportation costs, check Interface to Transportation Execution.
25. Click Save.
Related Topics
Defining Purchasing Options, page 1-32
Defining Requisition Templates
Use the Requisition Templates window to define requisition templates. These templates
automate requisitioning of commonly ordered items like office supplies. To create a
requisition for office supplies, requestors in your organization simply use your template
and enter the quantity of each item they want to order.
Setting Up 1-45
To create a template, you can specify the items individually or you can reference an
existing requisition or purchase order. If you reference an existing document,
Purchasing adds all lines on the document to the template. You can reference multiple
documents to add all their lines to the same template.
After you define a template, you can reference the template in the Supplier Item
Catalog. When you do so, Purchasing displays all template lines that are valid for the
destination organization, and you can use any of these lines on your requisition. You
can create requisitions with this template as long as the requisition creation date is
before the template inactive date.
To define requisition templates:
1.
Navigate to the Requisition Templates window.
2.
Select the Operating Unit for this template.
3.
Enter the requisition Template name.
4.
Enter a Description of the template.
5.
Enter the Inactive Date after which you do not want any requestor to create a
requisition from this template.
6.
Enter the requisition Type: Internal or Purchase. In either case, you can enter
individual requisition lines of either type.
1-46 Oracle Purchasing User's Guide
7.
If this template is to be used in Oracle iProcurement, select the Reserve PO Number
option.
No prevents the requester from reserving a purchase order number at the time the
requisition is approved.
Optional allows the requester to reserve a purchase order number at the time the
requisition is approved.
Yes will automatically reserve a purchase order number at the time the requisition
is approved.
To copy lines to a template:
1.
Select the Copy button to open the Base Document window.
2.
Enter the Base Document Type: Purchase Order or Requisition.
3.
Enter the base document Number from which you want to copy lines to the
template.
4.
Choose the OK button to copy all lines of the base document onto the template. You
can choose the Cancel button to return to the Requisition Templates window
without copying.
You can place lines from multiple documents onto the same requisition template.
To manually add lines to a template:
1.
Use the Lines region to manually add new lines to the template. You can also
remove lines that you have copied from a base document, and you can change
certain information in these lines.
2.
Enter a Number in this field to identify the sequence of the line on your requisition.
Purchasing provides default sequence numbers in increments of one.
3.
Enter the line Type. You can enter or change information in this field only for new
lines. The default is from the Purchasing Options window. See: Defining Default
Options, page 1-37.
4.
Enter the Item number. You can enter or change information in this field only for
new lines.
5.
For new lines only, you can enter the item Revision number.
6.
If you entered an item, Purchasing displays the purchasing Category, and you
cannot change it. Otherwise, you must enter a purchasing category.
7.
Purchasing displays the item Description from the document you selected in the
Setting Up 1-47
Base Document Number field. If you are entering a new line, the description is from
the item master. You can change the description only if this attribute is active for
the item.
8.
The Source type determines the source of the requisitioned items. The choice you
have in this field is dependent on your user profile options and the system profile
options. At either level, you may be restricted to one of the following options:
Inventory or Supplier.
Note that if you have both options, you can source requisition lines independently
of the requisition type. You can even mix inventory and supplier sourced
requisition lines in the same requisition. Purchasing creates one internal sales order
for each inventory source type requisition line on this requisition. The supplier
source type requisition lines go onto purchase orders, either automatically with
AutoCreate Documents or manually with the Purchase Orders window.
9.
Enter the default unit of measure.
10. Optionally, enter a suggested quantity for requisitioners in Oracle iProcurement.
11. For supplier sourced lines, you can enter the unit price, and this price is used in the
Requisitions window. For inventory sourced lines, the cursor does not enter this
field, and the price in the Requisitions window is the actual cost from inventory.
12. If Oracle Services Procurement is implemented, enter an amount for a fixed price
services line type. Amount is required and the source type must be Supplier.
13. Indicate that this line was from a negotiated source by checking the Negotiated
checkbox. You can change it only if your responsibility has that function enabled.
14. Save your work.
To enter sourcing information :
You can enter sourcing information for the current line in the lower part of the window.
1.
For supplier source type lines, you can enter the name of the Buyer to whom you
want to assign the requisition line. The buyers can query requisition lines that you
assign to them when they AutoCreate purchase orders.
2.
For supplier source type lines, you can select RFQ Required to indicate that you
want to require an RFQ before the buyer can create a purchase order for the
requisition. Purchasing displays a warning message if you try to create a purchase
order without a required RFQ.
3.
For supplier source type lines, you can enter a suggested Supplier for your
requisition items. You can choose a supplier from the list of available suppliers.
1-48 Oracle Purchasing User's Guide
4.
For supplier source type lines, you can enter the supplier Site. You can enter this
field only if you provide a suggested supplier name. You can choose a supplier site
from the list of values.
5.
For supplier source type lines, you can enter the name of your Contact at the
supplier site.
6.
For supplier source type lines, you can enter the Supplier Item number.
7.
For inventory source type lines, you can specify the source Organization.
8.
For inventory source type lines, you can optionally specify the Subinventory source.
If you do so, Oracle Order Management reserves the goods and uses only the
specified subinventory for allocation. If the goods do not exist at the specified
subinventory, Order Management backorders them, even if they do exist in another
subinventory.
Related Topics
Overview of the Supplier Item Catalog, page 5-5
Purchasing Hazardous Materials
Purchasing provides you with flexible features to handle all your hazardous materials
purchasing and receiving requirements. You can clearly identify and classify hazardous
materials and print information on your RFQs and purchase orders to ensure that your
suppliers pack, label, and ship hazardous materials according to the regulations. You
can also review hazardous materials information when receiving items and take the
required safety precautions.
Use the Hazard Classes window (See: Defining Hazard Classes, page 1-52.) to define
the hazard classes you need. Use the UN Numbers window (See: Defining UN
Numbers, page 1-53.) to define the identification numbers you use and to assign them
to hazard classes. Use the Item window to associate hazard classes and UN numbers
with your items. See: Defining Items, Oracle Inventory User's Guide
Regulation Background
Section 19 of the ISRS (International Safety Rating System) requires that you clearly
identify and record all orders for hazardous materials. The US Department of
Transportation provides similar regulations. These regulations provide an extensive
classification system for hazardous materials. The purpose of this classification is to
provide detailed requirements for shipping papers, package marking, labelling, and
transport vehicle placarding applicable to the shipment and transportation of
hazardous materials. For each hazardous material, the classification provides:
Setting Up 1-49
Shipping Name
Describes the item ordered or shipped. Shipping names are regulated in some cases.
Examples:
•
Calcium hydrogen sulfite solution
•
Epichlorohydrin
•
Fuel oil
•
Mercuric oleate, solid
•
Petroleum Distillate
•
Small arms ammunition
Hazard Class
Categorizes the hazardous material. Most hazardous materials belong to only one
hazard class. Some materials belong to more than one hazard class and some materials
do not belong to any. If a material belongs to more than one hazard class, you should
list these classes in a specific order.
Examples:
•
Corrosive Material
•
Flammable liquid
•
Forbidden
•
Combustible liquid
•
Poison A
•
ORM-A
•
Class A explosive
Identification Number
Identifies the hazardous material. Each identification number has a description. There
are two types of identification numbers. Identification numbers preceded by "UN"
(United Nations) have descriptions appropriate for international and US domestic
shipments. Identification numbers preceded by "NA" (North American) apply only to
US domestic shipments and shipments between the US and Canada. Identification
numbers are not unique. For instance, the same UN Number may correspond to two
closely related but different types of materials.
Examples:
•
UN0001 Alarm Devices, Explosives
1-50 Oracle Purchasing User's Guide
•
UN0027 Black powder
•
UN0180 Rockets
•
NA1133 Cement
•
NA2016 Grenade
•
UN2016 Ammunition
•
UN2769 Benzoic derivative pesticide, liquid
•
UN2769 Benzoic derivative pesticide, solid
Some hazardous materials do not have a corresponding identification number.
Examples:
•
Fuse, lighter
•
Propellant, explosive, liquid
In some cases, hazardous materials that you identify by the same identification number
can belong to two different hazard classes.
Example:
•
Fuel, aviation, turbine engine has the ID Number UN1863, but it can be in either the
Flammable Liquid or the Combustible Liquid hazard class.
Labels Required
Specifies the labels required for each package of the hazardous material. The
regulations provide detailed instruction concerning the format, size, colors, and
printing of labels.
Examples:
•
Flammable liquid
•
Explosive C
•
Poison B
Packaging Requirements
Specify the packaging and placarding requirements and exceptions for the hazardous
material. Packaging requirements depend mainly on the hazard class for the hazardous
material, but there are many exceptions to this rule.
Shipping Requirements
Specify the maximum amount of hazardous material you can carry per package
depending on the mode of transportation you use. Also provide additional shipping,
handling, storing, or other information about the hazardous material.
Setting Up 1-51
Examples:
•
Keep cool
•
Store away from acids
Defining Hazard Classes
Use this window to define codes for different classes of hazardous materials. You
provide the class name, description, and the date after which the class is no longer
active. You can assign a hazard class to multiple UN numbers to identify hazardous
items.
Purchasing automatically copies hazardous material information onto your documents
and prints this information on your purchase orders, RFQs, and Receipt Travelers.
Purchasing automatically displays hazardous material information for your receivers.
If you use Multilingual Support (MLS), translations can be entered for the hazard
classes from within each of your installed languages. To enter the translations for the
hazard classes, select Translations from the View menu. For more information on MLS,
see the Oracle Applications User's Guide.
To define hazard classes
1.
Navigate to the Hazard Classes window.
2.
If you are defining a new hazard class click Add Hazard Class. To enter changes to
an existing hazard class use the Search region to enter the hazard class's name in the
Hazard Class field or the description in the Description field. Once you have
completed one or all of these fields click Go.
3.
Enter a unique name for each hazard class you want to define. For example, you
might provide any of the following classes: Explosive, Poisonous, Toxic.
1-52 Oracle Purchasing User's Guide
4.
Enter a description for your hazard class. You can use this description to provide a
more detailed explanation of the hazard class.
5.
Enter the date your hazard class becomes inactive. You cannot use the hazard class
after this date.
6.
Click Save.
Related Topics
Purchasing Hazardous Materials, page 1-49
Defining UN Numbers, page 1-53
Defining Items, Oracle Inventory User's Guide
Defining UN Numbers
Use this window to define United Nations identification numbers for hazardous
materials. You can associate a hazard class with multiple identification numbers. You
can also assign an identification number and a hazard class to each item you define.
Purchasing automatically copies hazardous material information onto your documents.
Purchasing prints hazardous material information on your purchase orders, RFQs, and
Receipt Travelers and displays this information for your receivers and inspectors.
If you use Multilingual Support (MLS), translations can be entered for the UN numbers
from within each of your installed languages. To enter the translations for the UN
numbers, select Translations from the View menu. For more information on MLS, see
the Oracle Applications User's Guide.
Prerequisites
Define Hazard Classes before performing this step. See: Defining Hazard Classes, page
1-52.
To define UN numbers:
1.
Navigate to the UN Numbers window.
Setting Up 1-53
2.
If you are defining a new number click Add UN Number. To enter changes to an
existing number use the Search region to enter the number in the UN Number field,
the Description, or the Hazard Class. Once you have completed one or all of these
fields click Go.
3.
Enter the UN identification number. You can define multiple instances of the same
UN number as long as the descriptions are different.
4.
Enter a Description for your identification number.
5.
Enter the Hazard Class you want to associate with the identification number. This is
optional.
6.
Optionally enter the Inactive Date for the identification number.
7.
Click Save.
Related Topics
Purchasing Hazardous Materials, page 1-49
Defining Hazard Classes, page 1-52
Defining Items, Oracle Inventory User's Guide
Defining Lookup Codes
Use the Oracle Purchasing Lookups window to define lookup codes in Purchasing.
Purchasing uses lookup codes to define lists of values throughout the system. A lookup
category is called a lookup type, and the allowable values for the lookup type are called
1-54 Oracle Purchasing User's Guide
lookup codes. You can add your own codes to those initially provided for some of the
lookup types, depending on your Access Level.
For example, Purchasing supplies the following Supplier Type codes: Employee and
Supplier. You might want to define an additional code called Consultant to use for the
purchase of consulting services.
Important: You cannot change or delete codes once you have added
and saved them, but you can change the code descriptions.
For detailed information on defining and updating lookups, see: Lookups, Oracle
Applications Developer's Guid or see the online help.
If you use Multilingual Support (MLS), translations can be entered for the lookups from
within each of your installed languages. To enter the translations for the lookups, select
Translations from the View menu. For more information on MLS, see the Oracle
Applications User's Guide.
To define lookup codes:
1.
Navigate to the Oracle Purchasing Lookups window from the menu.
2.
Enter one of the following predefined lookup Types: 1099 Supplier Exception,
Acceptance Type, FOB (free on board), Freight Terms, Minority Group, Pay Group,
PO/Requisition Reason, Price Type, Quotation Approval Reason, Reply/Receive
Via, and Supplier Type.
3.
Enter up to 25 characters as a unique code you want to add to the lookup codes
already provided. Purchasing provides the following codes for the listed lookup
Setting Up 1-55
types:
1099 Supplier Exception: Purchasing provides no 1099 Supplier Exception codes, but
you can define your own. These codes are used only in the Payables reports: 1099
Invoice Exceptions Report and 1099 Supplier Exceptions Report.
Acceptance Type: Purchasing provides Accepted Terms, On Schedule, and
Unacceptable Changes.
FOB: Purchasing provides no FOB codes, but you can define your own. This code is
printed on your purchase orders.
Freight Terms: Purchasing provides no Freight Terms codes, but you can define your
own. This code is printed on your purchase orders.
Minority Group: Purchasing provides no Minority Group codes, but you can define
your own. Minority Group codes are used to classify suppliers for reporting
purposes.
Pay Group: Pay Groups can be assigned to Payables invoices. Then Payables
payment batches can be limited to invoices assigned to a specified Pay Group. The
system provides no Pay Group lookups, but you can define your own in this
window.
Price Type: Purchasing provides Cost Plus Fee, Cost Plus Percentage, Fixed,
Indexed, and Variable.
Quotation Approval Reason: Purchasing provides Best Delivery, Best Design, Lowest
Price, Only Source, Quality, and Service.
Reply/Receive Via: Purchasing provides no Reply/Receive Via codes, but you can
define your own.
PO/Requisition Reason: Purchasing provides no transaction reason/transaction nature
codes for purchase orders, requisitions, RFQs, and quotations, but you can define
your own.
Vendor (Supplier) Type: Purchasing provides Employee, Supplier, and Public Sector
Companies. These codes are used to classify suppliers for reporting purposes. You
enter this value in the Type field of the Classification region of the Suppliers
window. See: Business Classifications, Oracle iSupplier Portal Implementation Guide. It
is also used to define tax recovery rules. The Tax Authority supplier type indicates
suppliers to whom you remit withholding taxes. See: Tax Rules in Oracle
E-Business Tax, Oracle E-Business Tax User's Guide.
4.
Enter an Inactive Date on which the code is no longer active.
5.
Save your work.
Defining Quality Inspection Codes
Use the Quality Inspection Codes window to define and update your inspection codes.
1-56 Oracle Purchasing User's Guide
You can define as many codes for inspection as you want. Each code must have a
corresponding numerical ranking, which provides an inspection scale. You use these
inspection codes when you receive and inspect the items you ordered.
To define quality inspection codes:
1.
Navigate to the Quality Inspection Codes window.
2.
If you are defining a new code click Add Quality Code. To enter changes to an
existing code use the Search region to enter the ranking in the Ranking field, the
Quality Code, or the Description. Once you have completed one or all of these fields
click Go.
3.
Enter a Ranking number that corresponds to a specific quality code. This value
must be between 0 and 100, where 0 represents the lowest quality. For example, 10
might represent a quality ranking of Poor, while 90 might represent a quality
ranking of Excellent. Purchasing lists these rankings when you inspect your
receipts.
4.
Enter a Quality Code to indicate a particular quality standard. For example, you
might want to define Excellent Condition or Damaged as quality codes.
5.
Enter a description for your quality code. You can use this description to provide a
more detailed explanation of the quality code.
6.
Enter the Inactive Date after which the quality code is no longer active.
7.
Save your work.
Setting Up 1-57
Line Types in Purchasing Documents
Oracle Purchasing provides the line type feature so that you can clearly differentiate
orders for goods from those for services or outside processing. In addition, the services
related line types support a broad range of service categories including general business
services, consulting services, and contingent labor.
Background
Requestors and buyers generally order both goods and services by quantity. You order
the number of items you need in a specific unit of measure and at a given price. For
instance, a buyer could order 10 computer terminals at a price of $1500 each. Later, the
receiving agent records the receipt of one crate of 5 terminals. The accounts payable
department receives a bill for 5 terminals, and matches the invoice against the original
purchase order. Sometimes, you also need to order services in the same way. For
example, you purchase 40 hours of product training at a rate of $40 per hour. You
simply record the hours of training ordered and the price per hour. Once you receive
the training, you record the hours received.
However, you sometimes order services by amount rather than by quantity. For
example, a project manager orders $10,000 of consulting services to install a local area
network. In this case, the buyer only needs to record the total amount of the service.
When half of the work is complete, the project manager records a receipt of $5000. The
consulting firm may send an invoice for the complete amount of the service, or it may
send partial invoices. In either case, the accounts payable department must match the
invoice to the original purchase order or receipt by amount.
Purchasing provides you with the features you need to order both goods and services.
You should be able to:
•
Create your own purchasing document line types. For each line type, you should be
able to specify the value basis: amount or quantity. If you have implemented Oracle
Services Procurement, you have the additional value basis of fixed price or rate. For
both amount and quantity based line types, you can specify default values for
category, unit of measure, and whether you require receipt. For quantity based
lines, you can specify whether the line type is used for outside processing.
•
Create a purchasing document with any combination of line types you need.
•
AutoCreate purchase order lines from your requisition lines, grouping requisition
lines for the same line type and item onto the same purchase order lines.
•
Create services purchase order lines by selecting a fixed price or rate based line
type, category, description, and amount for the line.
•
Create amount-based purchase order lines by selecting an amount-based line type,
1-58 Oracle Purchasing User's Guide
category, item description, and total amount for the line.
Major Features
Line Type
The line type governs the type of requisition, purchase order, RFQ, and quotation lines
you create. Quantity-based line types let you order and receive and/or invoice based on
the quantity of goods or services provided. Amount-based line types let you order and
receive and/or invoice based on the value of the service provided.
Quantity-Based Purchasing
Use quantity-based line types when you want to specify the quantity, unit of measure,
and unit price for the items you are ordering. Purchasing provides Goods as an initial
quantity-based line type. You can modify this line type or create new quantity-based
line types to satisfy your needs.
Fixed Price-Based Purchasing
If you have implemented Oracle Services Procurement, you can use fixed price-based
line types when you want to order general business services or temporary labor services
(with Oracle Services Procurement) by a fixed amount. You create an order for fixed
price service by selecting a fixed price-based line type, category, item description, and
total amount of the service. You can receive and match fixed price services by amount.
Rate-Based Purchasing
If you have implemented Oracle Services Procurement, you can use rate-based line
types when you want to order temporary labor services by per unit rate. You can use
rate differentials with this line type. You create an order for rate based service by
selecting a rate-based line type, category, unit of measure, price, item description, and
total amount of the service. You can receive and match rate-based services by amount.
Amount-Based Purchasing
Use amount-based line types when you want to order services and other items by
amount. You create an order for a service by selecting an amount-based line type,
category, item description, and total amount of the service. You can also receive and
match services by amount.
Outside Processing Line Types
You can use outside processing line types to enter purchasing documents to pay
suppliers for outside processing operations. Purchasing provides Outside Processing as
an initial outside processing line type, and you can create additional outside processing
line types. You cannot use outside processing line types, unless Purchasing, Work in
Setting Up 1-59
Process, and Bills of Material are installed. See: Overview of Outside Processing, Oracle
Work in Process User's Guide.
Temporary Labor Line Types
If you have implemented Oracle Services Procurement, you can use temporary labor
purchase basis line types to enter purchasing documents to pay contingent labor
(contract labor) providers. See: Setting Up Services Procurement for Temporary Labor,
page 1-88
Line Types Step by Step
Defining Line Types
Oracle Purchasing provides initial line types of Goods and Services. If Oracle Work in
Process is installed, Oracle Purchasing also provides the line type Outside Processing. If
Oracle Services Procurement is installed, Oracle Purchasing also provides Rate Based
Temp Labor and Fixed Price Temp Labor line types. You can modify these line types or
create new line types in the Line Types window. To define a new line type, you simply
provide a name and description for lines types with a value basis of quantity. fixed
price, rate, or amount. You can then optionally specify a default category (except for
Oracle Services Procurement temp labor line types), whether receipt is required, and
unit of measure. The unit price defaults to 1 for amount-based line types but is
otherwise optional. You cannot specify a line as outside processing unless the value
basis is quantity. You must provide a default unit of measure for rate-based and
amount-based line types. You use the unit of measure for amount-based lines as
reference information only. Purchasing does not perform any unit conversion for
amount based lines. You can create a unit of measure such as AMOUNT for amount
based line types to help you determine if you ordered by amount. See: Defining Line
Types, page 1-61. See: Defining Units of Measure, Oracle Inventory User's Guide.
Creating Purchasing Document Lines
Oracle Purchasing lets you specify whether you are creating a document line for
quantity, fixed price, rate, amount, or outside processing depending on your
implementation. You simply choose the line type when you create your document line.
You enter the item, item description, quantity, unit of measure, and unit price or
amount depending on the line type. See: Defining Line Types, page 1-61.
Setting Up a Default Line Type
Since you typically use one line type more than the others, Purchasing lets you define a
system default line type in the Purchasing Options window. All new purchasing
document lines default to this line type. You can override this value when you need to
create document lines of another type. You do not have to set up a system default if you
use many different line types. See: Defining Default Options, page 1-37.
1-60 Oracle Purchasing User's Guide
AutoCreating Purchase Orders
You can use the AutoCreate Documents window to convert approved requisition lines
for items and services into purchase orders and releases. You can gather requisition
lines for the same line type and place them onto a single purchase order. You can also
place requisitions for different line types onto the same purchase order. Purchasing
combines requisition quantity and amount based lines for the same item, line type, unit
of measure, and item revision onto a single purchase order line. See: Autocreate
Documents Overview, page 6-1
Enhanced Document Printing
Purchasing prints your document lines according to their line types. For quantity based
line types, Purchasing prints the quantity, unit price and total amount for purchase
orders and RFQs. Oracle Purchasing prints only the amount for fixed price, rate, and
amount based document lines. If Oracle Services Procurement is implemented, note that
the temporary labor information is not printed.
Enhanced Reporting
The line type feature includes enhanced reporting to differentiate between quantity and
amount based orders. Oracle Purchasing prints the line type so you can easily
determine the basis of the information. For fixed price, rate, and amount based orders,
Oracle Purchasing prints only the total amount of the order.
Defining Line Types
Use the Line Types window to define and update line types.
When you enter a line on a purchasing document and choose a line type, Purchasing
automatically displays the default information that you define here for the line type.
Line types let you distinguish their value basis between quantity and amount based line
items. You use quantity based line items when you know the quantity and price of the
line you are ordering. For example, you might buy a dozen pens for $10. You use
amount based line items when you are ordering a service.
If Oracle Services Procurement is implemented, fixed price and rate value based line
types are also possible. You use fixed price based line items when you are ordering a
service with a set fee. You use rate based line types when you are ordering services on a
fee per unit basis. For example, you might order consulting services at $250 per hour.
You can create line types to reflect different characteristics for the items you purchase.
For example, you may want to define one line type for items you order by quantity and
unit price, another line type for services you order by hour, and yet another that
indicates an outside processing operation used in Oracle Work In Process (WIP). You
can create purchasing document lines and specify whether they are for goods, services,
outside processing, or any other line type you define.
You can further refine the definition of your line type by specifying a purchase basis for
Setting Up 1-61
a line type. You can choose a purchase basis of goods or services. If Oracle Services
Procurement is implemented, you can also choose temp (temporary) labor. Value basis,
discussed above, reflects how you wish to value the purchase. For example, quantity,
amount, or rate. Purchase basis indicates the nature of the purchase and determines the
attributes that are required, as well as the associated business flows downstream.
Outside processing line types are necessary when you are using WIP and want to enter
purchasing documents for outside processing operations in WIP. When you choose an
outside processing line type on a purchasing document line, you can enter only outside
processing items and the destination type can be only Shop Floor.
Purchasing automatically provides you with a line type of Goods that is quantity based.
If Work in Process is installed, Purchasing also provides you with an Outside
Processing line type. You can set up your purchasing options to copy a default line type
for lines you add to every requisition, purchase order, RFQ, or quotation document.
You can override the default line type for each document line you create.
If you use Multilingual Support (MLS), translations can be entered for the line types
from within each of your installed languages. To enter the translations for the line
types, select Translations from the View menu. For more information on MLS, see the
Oracle Applications User's Guide.
Prerequisites
• Define categories. See: Defining Categories, Oracle Inventory User's Guide.
•
Define units of measure. See: Defining Units of Measure, Oracle Inventory User's
Guide.
1.
Navigate to the Line Types window.
2.
If you are defining a new line type click Create. To enter changes to an existing line
type use the Search region to enter the Name or the Description. Once you have
completed one or all of these fields click Go. Enter your changes by clicking the
Update icon for your line type.
To define line types
1-62 Oracle Purchasing User's Guide
3.
Enter the Name and Description of the line type.
4.
Enter the Value Basis for the line type.
Amount: Receive items by amount. You cannot change the unit of measure and unit
price on purchasing document lines.
Fixed Price: If Oracle Services Procurement is implemented, enter services by
amount only. Receive items by amount. You cannot change the unit of measure and
unit price on purchasing document lines.
Quantity: Receive items by quantity. Outside Processing line types must have this
value basis.
Rate: If Oracle Services Procurement is implemented, enter services by rate (price)
and amount. Receive items by amount.
Important: You can not change line type attributes after
transactions have been created for that line type.
5.
Enter the Purchase Basis for the line type.
Goods: For quantity value based line types.
Services: For amount and fixed price based line types.
Temp Labor: If Oracle Services Procurement is implemented, for fixed price and rate
based line types.
6.
Enter the End Date on which the line type is no longer usable.
7.
Select Outside Processing to restrict this line type to purchasing outside processing.
Also, when you use an outside processing line type on a purchasing document,
your choices for the item are limited to outside processing items. You can select this
check box only if the value basis is Quantity and if you are using Work in Process.
8.
Enter the default purchasing Category for items with this line type. You can
Setting Up 1-63
override this purchasing category on purchasing document lines.
9.
Select Receipt Required if you want this as the default on your purchasing
document shipments with this line type. You can overrule the default when you
enter the shipment.
10. Enter the default Unit of measure for items with this line type. You must enter a
default unit when you use the Amount value basis for your line type. You can
override this unit of measure on your purchasing document lines only when you
use non-Outside Processing line types with Quantity value basis.
If you use the Amount value basis, you may want to choose your functional
currency as the unit of measure. For example, if your functional currency is US
dollars, you may want to define a unit of measure USD that you can use for your
line types with the Amount value basis.
If Oracle Services Procurement is implemented, line types with a rate value basis
the unit of measure class can be restricted by the setting of the profile PO: UOM
Class for Temp Labor Service.
11. Enter the default Unit Price for items with this line type. Purchasing automatically
enters a unit price of 1 when you use the Amount value basis and prevents you
from updating this price when you create your line type. You can override this unit
price on your purchasing document lines only when you use line types with
Quantity value basis.
12. Click Save.
Related Topics
Purchasing Services, page 1-58
Overview of Outside Processing, Oracle Work in Process User's Guide
Purchasing Services
Oracle Purchasing provides you with the features you need to order both goods and
services. To satisfy the special needs of buyers procuring services, Oracle Purchasing
provides the functionality described here. In addition, you may want to consider
implementing Oracle Services Procurement.
Purchasing Services Step by Step
Creating Requisitions for Services
Oracle Purchasing lets you create requisition lines for services and other amount based
orders. The fixed price based and rate based line types are specifically designed for
1-64 Oracle Purchasing User's Guide
procuring services.
Amount Based: When you choose an amount based line type, Purchasing automatically
sets the unit price to 1 for your line and enters the default unit of measure for the line
type. You cannot change the unit price or unit of measure for amount-based requisition
lines. You enter the amount of the service in the Quantity field. Your total line amount
is the same as the value displayed in the quantity field. You can use the quantity field in
your distributions to allocate the order amount to multiple accounting flexfields.
Fixed Price Based: If Oracle Services Procurement is implemented, you can use fixed
price service line type is for general business services where the purchase and invoice
are based on a dollar amount of service. Once defined, you need only enter the amount
to complete a fixed price requisition line.
Rate Based: If Oracle Services Procurement and Oracle iProcurement are implemented,
you can create a rate based requisition line for contingent labor where you are billed a
per unit rate such as hourly. This line type also enables you to capture agreed rates for
price differentials such as an overtime rate or holiday rate.
Creating Purchase Orders for Services
You can use AutoCreate Purchase Orders to create purchase order lines and releases
from approved requisitions. You can gather all requisition lines for services and review
these lines before placing specific ones on purchase orders. For amount based lines you
can also split a requisition line for a service into several requisition lines for goods and
services. Purchasing creates a purchase order for all of the requisition lines you choose.
You can also enter purchase orders for services manually by entering a service line type
and the appropriate information for that line type.
If Oracle Services Procurement is implemented, the services line may require that you
enter a job, price differentials, and details in the Temporary Labor tabbed region
Sourcing Services
When you request a quotation from a supplier for a particular service, you can provide
a complete description of the service you are requesting. You must choose a quotation
type of Catalogif you want to use it for sourcing.
When you choose sourcing information for amount-based requisition and purchase
order lines, Purchasing copies the total amount from your chosen quotation shipment
into the Quantity field of your purchasing document. Since you are creating an
amount-based line and the unit price is set to 1, the Quantity field displays the total
amount for the line.
Note: Oracle Services Procurement fixed price and rate-based line types
are not supported for quotations or request for quotations (RFQ).
Setting Up 1-65
Receiving Services
You receive services the same way you receive goods. When you receive a service, your
quantity fields reflect the amounts of your order. Simply specify the amount you
receive, correct, or return in the Quantity fields. Oracle Purchasing displays your line
type so you can determine whether you are receiving by amount or quantity. You must
receive services and other amount-based purchases in the unit of measure specified on
the purchase order.
Note: Oracle Services Procurement fixed price line types can not be
received, corrected, or returned using Oracle Purchasing windows.
These transactions can only be performed in the Oracle Purchasing
Receiving Open Interface or in Oracle iProcurement.
Oracle Services Procurement rate-based line types can only be received
using the Retrieve Time from Oracle Time and Labor process.
Matching Service Purchase Orders
When matching payables invoices to a service purchase order or receipt lines, you
match based on the amount. For amount based lines, Oracle Accounts Payable defaults
the unit price to 1 when matching. You should not change the unit price.
Defining Document Types
Use the Document Types window to define access, security, and control specifications
for all Purchasing documents. You cannot enter new document types; you can enter
new document subtypes only for RFQs and quotations.
If you use Multilingual Support (MLS), translations can be entered for the document
types from within each of your installed languages. To enter the translations for the
document types, select Translations from the View menu. For more information on
MLS, see the Oracle Applications User's Guide.
Prerequisites
❒ Before you use this window to set up your document types, you should perform the
following steps:
❒ If you want to be able to choose the document approval hierarchy in this form, you
must enable Use Approval Hierarchies in the Financials Options window. See:
Defining Financials Options, Oracle Payables User's Guide.
❒ You must use the Position Hierarchy window to create and update the position
hierarchies, since Purchasing uses these hierarchies as document approval routings.
Refer to 'Representing Jobs and Positions' in your Oracle HRMS documentation set
1-66 Oracle Purchasing User's Guide
for more information
To define document types:
1.
Navigate to the Document Types window.
2.
Select your Operating Unit and click Go
3.
Select a Document Type from the list and click its icon in the Update column. If
your document type is one of Purchase Agreement, Purchase Order, Quotation,
Release, Request for Quotation, or Requisition you can update the attributes
discussed in the following steps.
4.
You can enter user-defined Document Subtypes only for document types Quotation
and Request for Quotation. You can delete Quotation and Request for Quotation
document types you have created, but only if no actual document exists for the
type. Purchasing provides the following document subtypes:
Purchase Agreement - Blanket and Contract (For more information on these
document types, see: Purchase Order Types, page 4-2.)
Purchase Order - Planned, Standard, Requester Change Order (For more information
on these document types, see: Purchase Order Types, page 4-2.)
Quotation - Bid, Catalog, and Standard (For more information on these document
types, see: Types of Quotations and RFQs, page 5-5.)
Release - Blanket and Scheduled (For more information on these document types,
see: Purchase Order Types, page 4-2.)
Request for Quotation - Bid, Catalog, and Standard (For more information on these
document types, see: Types of Quotations and RFQs, page 5-5.)
Requisition - Internal and Purchase (For more information on these document types,
Setting Up 1-67
see: Requisition Types, page 3-6.)
5.
Enter your Document Name for the document. The description must be unique for
the given document type. The name that you enter here appears as a list of values
choice in the Type field in the appropriate document entry window. For example,
the Name Bid Quotation appears, along with the Quotation Class Bid, as a list of
values choice in the Quotation Type field in the Quotations window.
6.
The Quotation Class is applicable only for document types Quotation and Request
for Quotation. Choose one of the following options:
•
Bid - The quotation or RFQ is for a specific fixed quantity, location, and date.
•
Catalog - The quotation or RFQ includes price breaks at different quantity levels.
For more information about Bid and Catalog, see: Types of Quotations and RFQs,
page 5-5. (Although there are three types of quotations-Bid, Standard, and Catalog
-there are only two quotation classes-Bid and Catalog. Standard belongs to the
Catalog class.)
7.
For purchasing documents other than requisitions, select the stylesheet for this
document type in the Document Type Layout field.
If you have selected PDF as your purchase order output format, you must select a
layout template in Document Type Layout. See: Defining Control Options, page 133. See: Setup Purchase Order Communication to Suppliers, page 1-74.
8.
If you have implemented Oracle Procurement Contracts, you must select a contract
terms layout template in Contract Terms Layout. Note that if a Document Type
Layout is specified, Oracle Purchasing will use that template to format output. See
the Oracle Procurement Contracts Implementation and Administration Guide for details.
9.
Check Owner Can Approve to indicate that document preparers can approve their
own documents. This field is not applicable when the Document Type is Quotation
or RFQ.
Important: If you are using budgetary control and enable this
option, you should also enable the Reserve at Requisition
Completion option in the Financials Options window. Likewise, if
you disable this option, you should also disable the Reserve at
Requisition Completion option.
10. Check Approver Can Modify to indicate that document approvers can modify
documents. This field is not applicable when the Document Type is Quotation or
RFQ.
11. Check Can Change Forward-To to indicate that users can change the person the
1-68 Oracle Purchasing User's Guide
document is forwarded to. This field is not applicable when the Document Type is
Quotationor RFQ.
For more information on how this and the next two fields affect your approval
routing, see: Approval Routing, page 2-10.
12. Check Can Change Approval Hierarchy to indicate that preparers and approvers
can change the default approval hierarchy in the Approve Documents window.
This field is not applicable when the Document Type is Quotationor RFQ.
13. Check Can Change Forward-From to indicate that preparers can change the name
of the document creator. This field is applicable only when the Document Type is
Requisition.
14. For Purchase requisitions only, select Use Contract Agreements for Auto Sourcing
to require the requisition creation autosourcing logic to include approved contract
purchase agreements. The autosourcing logic for requisition creation will not
consider contract purchase agreements if this box is unchecked, even if you have
the profile PO: Automatic Document Sourcing set to Yes.
Include Non-Catalog Requests - For Oracle iProcurement only, this checkbox is used
in conjunction with the Use Contract Agreements for Auto Sourcing. Select this
checkbox to enable the use of contract purchase agreements when autosourcing
non-catalog requisitions.
15. For user-defined quotations and RFQs, Purchasing displays as a default the Security
Level of the Standard Quotation or RFQ, and you cannot enter the field. Otherwise,
choose one of the following options:
•
Hierarchy - Only the document owner and users above the owner in the defined
purchasing security hierarchy may access these documents.
•
Private - Only the document owner may access these documents.
•
Public - Any user may access these documents.
•
Purchasing - Only the document owner and users listed as buyers in the Define
Buyers window may access these documents.
For an overview of Security Level and Access Level, see: Document Security and
Access, page 2-7.
16. For user-defined quotations and RFQs, the Access Level is that of the Standard
Quotation or Standard RFQ, and you cannot enter the field. Otherwise, choose one
of the following Access Level options:
•
Full - Users can view, modify, cancel, and final close documents.
•
Modify - Users can only view and modify documents.
Setting Up 1-69
•
View Only - Users can only view documents.
17. The Forward Method field is not applicable when the Document Type is Quotation
or RFQ. The following options apply regardless of whether you are using position
hierarchies or the employee/supervisor relationship to determine your approval
paths. Choose one of the following options:
•
Direct - The default approver is the first person in the preparer's approval path
that has sufficient approval authority.
•
Hierarchy - The default approver is the next person in the preparer's approval
path regardless of whether they have approval authority. (Each person in the
approval path must take approval action until the person with sufficient
approval authority is reached.)
18. The Archive When field is applicable only when the Document Type is Purchase
Agreement, Purchase Order, or Release. Choose one of the following options:
•
Approve - The document is archived upon approval. This option is the default.
The Change Order workflow begins only if this option is chosen. See: Workflow
Processes for Approving Change Orders, page E-133.
•
Communicate - The document is archived upon communication. A document
communicate action would be printing, faxing, or e-mail.
19. The Default Hierarchy field is not applicable when the Document Type is Quotation
or RFQ. Otherwise, when Use Approval Hierarchies is enabled in the Financial
Options window, you can enter a position hierarchy from the Position Hierarchy
window. This hierarchy then becomes the default in the Approve Documents
window.
Approval workflows for specific document types:
In Purchasing, all approvals are handled in the background by Oracle Workflow
technology. The default approval workflow processes in Purchasing use the approval
controls and hierarchies you define according to the setup steps in Setting Up
Document Approval and Security, page 2-1. If you created a workflow process of
your own and wanted to associate it with a specific document type, you would choose
that workflow process here.
1.
Select the Approval Workflow you want to use for this particular document type, or
use the default that is already provided.
The PO Approval workflow is used for approving purchase orders. The PO
Requisition Approval workflow is used for approving requisitions. If you've
created a workflow of your own, you can select that for this document. See:
Approval Workflows, page E-89.
1-70 Oracle Purchasing User's Guide
2.
Select the Workflow Startup Process you want to use for this particular document
type, or use the default that is already provided.
Usually the Workflow Startup Process is the highest-level process in a workflow.
The default startup process for the PO Approval workflow is the PO Approval Top
Process. The default startup process for the PO Requisition Approval workflow is
the Main Requisition Approval Process. If you've created a startup process of your
own, you can select that for this document.
3.
For requisitions only, select the Approval Transaction Type. If you have
implemented Oracle Approvals Management, this selection associates the
transaction type with the requisition document type. Leave the field blank to use
the standard Oracle Purchasing approval logic. See: Oracle iProcurement
Implementation Guide and Oracle Approvals Management Implementation Guide. See:
Setting Up Document Approval and Security, page 2-1.
4.
For requisitions only, select the Autocreate Workflow you want to use for
automatically creating purchase orders or releases from approved requisition lines,
or use the default that is provided.
The default workflow that comes with Purchasing is the PO Create Documents
workflow. If you've created a workflow of your own, you can select that for this
document. See: Workflow for Creating Purchase Orders or Releases, page E-161.
5.
For requisitions only, select the Autocreate Workflow Startup Process you want to
use, or use the default that is already provided.
The highest-level process for the PO Create Documents workflow is the Overall
Document Creation / Launch Approval Process. If you've created a startup process
of your own, you can select that for this document.
Related Topics
Defining Financials Options, Oracle Payables User's Guide
Representing Jobs and Positions, Oracle HRMS Enterprise and Workforce Management
Guide
Enter Person, Oracle HRMS Enterprise and Workforce Management Guide
Budgetary Control and Online Funds Checking, Oracle General Ledger User's Guide
Submitting a Document for Approval, page 2-32
Entering Requisition Headers, page 3-48
Entering Purchase Order Headers, page 4-40
Entering RFQ Headers, page 5-49
Entering Quotation Headers, page 5-62
Setting Up 1-71
Defining Document Styles
Use the Document Styles window to create and update purchase order styles.
Purchase order document styles allow organizations to control the look and feel of the
application to match the usage of the purchasing document. Through reusable
document styles, organizations can turn on or off various Oracle Purchasing features,
thereby simplifying the user interface. In addition, document styles provide the ability
to define purchasing document names that align more closely with the naming
conventions of your organization's business. When a purchasing document is created
using a document style, disabled features are hidden.
For example, you can create a document style for a specific commodity, such as
temporary labor. This document style optimizes field labels and presentation for that
commodity, thereby simplifying purchase order entry.
Prerequisites
❒ Document styles only apply to authoring documents in the Buyer Work Center.
❒ Document styles are not organization specific.
To define document styles:
1.
Navigate to the Document Styles window.
2.
If you are defining a new document style click Create. To enter changes to an
existing style use the Search region to enter the Name, Description, or the Status.
Once you have completed one or all of these fields click Go. Enter your changes by
clicking the Update icon for your document style.
Note: Once a style has been saved, you can only update the style to
be less restrictive.
1-72 Oracle Purchasing User's Guide
3.
Enter the Name and Description of the document style. The style name must be
unique.
4.
Select the Status as Active for a new style or Inactive for a style you no longer want
used.
5.
You must enter a unique Display Name for the Standard Purchase Order. This is
the name that appears in the Buyer Work Center.
6.
If you are defining a style that applies to contract purchase agreements or blanket
purchase agreements, check their boxes and enter a unique Display Name.
7.
If Services Procurement is implemented, check the Purchase Bases that apply to this
document style. See: Defining Purchase Basis, .
8.
Select whether specific or all Line Types are enabled for this document style. See:
Line Types in Purchasing Documents, .
9.
If you are defining a style that includes blanket purchase agreements, enable price
breaks using the Price Breaks checkbox.
10. If Services Procurement is implemented and you have enabled a Temp Labor basis,
use the checkbox to enable Price Differentials.
11. If Services Procurement is implemented, enable the Complex Payments attributes
that apply:
•
Check Advances if advance payments are to be allowed.
Setting Up 1-73
•
Check Retainage if withholding of a portion of the payment until all work
under a contract is accepted is to be allowed.
•
Check Progress Payments to enable partial payments during performance of the
contract. If Progress Payments is enabled, at least one pay item must be
selected.
•
Milestone - Enable for payments based on progress events. Enabled by
default for Goods line type.
•
Rate - Enable when payment amount is pro-rated based on the percentage
of work completed.
•
Lump Sum - Enable when payment amount is a fixed amount based on the
percentage of work completed.
•
Enable Treat Progress Payments as Contract Financing if it applies to this
style's progress payments.
12. Click Apply.
Related Topics
Line Types in Purchasing Documents,
Oracle Services Procurement,
Purchase Order Communication Setup Steps
This section discusses the setup steps which define your supplier's preferred
communication method. Oracle Purchasing supports the following methods of
communicating purchase orders:
•
Print
•
Facsimile (fax)
•
Electronic mail (e-mail)
•
Extensible Markup Language (XML)
•
Electronic Data Interchange (EDI)
See: Purchase Order Communication to Suppliers, page 8-1.
Important: It is important to note that enabling PDF output (described
1-74 Oracle Purchasing User's Guide
below) activates the Communicate selection in the Tools menu of the
Purchase Order Summary window.
Print purchase orders:
The standard way to communicate purchase orders to your supplier is by printing them
and sending a copy to the supplier in the mail. Your purchase order can be printed
using text or PDF (Adobe Portable Document Format) formatting. This method requires
that your system administrator configure the printers attached to your computer
system. See: Setup Steps, page 1-4.
Setup steps for printed purchase orders:
1.
Navigate to the Supplier Sites window.
2.
Under the General tab, choose Printed Document as the Supplier Notification
Method.
Fax purchase orders:
Purchase orders facsimiles can be sent using text or PDF formatting. If you choose text
format you must implement a third party FCL compatible fax software (such as
RightFax). If you choose PDF format you may also use a third party fax software. See:
Purchase orders in PDF, page 1-77.
This communication method also requires that your system administrator configure
your Oracle Application to support fax transmission. See: Oracle Applications System
Administrator's Guide.
Setup steps for faxed purchase orders:
1.
Navigate to the Supplier Sites window.
2.
Under the General tab, choose Fax as the Supplier Notification Method. Enter a
default fax number for the supplier site. You can change the default fax number or
the notification method at the time of document communication.
E-mail purchase orders:
You can send e-mail copies of purchase orders using HTML or PDF formatting.
Note: PDF format purchase orders are sent as attached files. See:
Purchase orders in PDF, page 1-77.
Oracle Purchasing supports various types of file attachments (MS Word, Excel, PDF
etc.) that can be appended to purchasing documents in addition to long and short text
attachments. When a purchase order is e-mailed to the supplier, the corresponding file
Setting Up 1-75
attachments appear in a zip file attached to the e-mail. You may specify the maximum
allowable size for this zip file to minimize network traffic through the Purchasing
Options window.
Note: When communicating PDF purchase orders using e-mail, all File
type attachments are zipped into a single zip file named
"Attachments.zip."
This communication method requires that your system administrator configure your
Oracle Application Notification Mailer workflow to support e-mail transmission. See:
Implementing Notification Mailers, Oracle Workflow Administrator's Guide.
Setup steps for E-mail PO:
1.
Navigate to the Supplier Sites window.
2.
Under the General tab, choose E-mail as the Supplier Notification Method. Enter a
default e-mail address for the supplier site. You can change the default e-mail
address or the notification method at the time of document communication.
3.
Define an alternative e-mail address in the Profile option PO: Secondary E-mail
Address to send a copy of the e-mail PO to your company. If you wish to resend the
e-mail, the user will need to log into this secondary e-mail account and resend it
from there.
4.
Generic terms and conditions can be appended on the e-mail PO body by putting
them in a text file. This text file needs to be placed in one of the directories specified
in the UTL_FILE parameter in the INIT.ORA file. Make sure that the file is placed in
the directory that exists where the database server is running. Once this is done, the
following profile options need to be set for e-mail PO to read the terms and
conditions file and display them in the e-mail body.
•
Set profile PO: In File Path with the absolute path of the directory where the
terms and conditions file is placed.
•
Set profile PO: Terms and Conditions File Name with the name of the file.
5.
Restart the workflow notification mailer after setting the above profiles. Navigate to
Requests, Submit Requests, and run the concurrent program Notification Mailer to
restart the mailer. (See Setting Up Oracle Workflow in the Oracle Workflow User's
Guide for more details. Also check MetaLink for a Notification Mailer setup
document.)
6.
Failed e-mails (due to incorrect e-mail address) will be delivered by the mailer into
a discard file. You need to monitor this file and look for common expressions such
as Undisclosed Recipient (or other common expressions) and insert these
expressions into the tags file as defined by the TAGFILE parameter in the workflow
1-76 Oracle Purchasing User's Guide
mailer configuration file. You then need to change the standard error handler
workflow to look for these tags and take appropriate actions (send notifications to
administrator/buyer).
XML purchase orders:
Purchase orders and change orders can be communicated to the supplier using XML if
the Oracle XML Gateway is implemented. For details on setting up the XML Gateway
for Oracle Purchasing see Oracle Purchasing XML Transaction Delivery Guide.
EDI purchase orders:
Purchase orders and change orders can be communicated to the supplier using EDI if
the Oracle e-Commerce Gateway is implemented. For details on setting up the
e-Commerce Gateway for Oracle Purchasing see Oracle e-Commerce Gateway User's Guide
.
Purchase orders in PDF:
Purchase orders can be viewed online or e-mailed, and faxed to suppliers in Adobe
Portable Document Format (PDF). You can specify a style sheet template to control the
appearance and layout of the formatted PDF file. If you have implemented Oracle
Procurement Contracts, you can specify a style sheet template to control the appearance
and layout of the contract terms as part of the purchase order PDF file. These templates
are managed using Oracle XML Publisher. See the Oracle XML Publisher User's Guide.
Setup steps for PDF purchase orders:
1.
If Oracle Procurement Contracts is implemented, define terms and conditions for
procurement documents template. See the Oracle Procurement Contracts
Implementation Guide for details.
2.
Setup supplier:
•
Assign the preferred method of communication to the supplier site. Refer to the
instructions given above.
•
Assign a language to the supplier site.
3.
From the Control tab of the Purchasing Options window set the PO Output Format
to PDF. See: Defining Control Options, page 1-33.
4.
Assign a Unix directory to the profile PO: Fax Output Directory for the PO
Document. The system will store the generated PDF document in this directory
when the communication is fax.
5.
Define the Document Type Layout in the Document Types window. There must be
a layout template for the document type. If Oracle Procurement Contracts is
Setting Up 1-77
implemented, define the layout template for the contract terms. See: Defining
Document Types, page 1-66. These style sheets are created in the Oracle XML
Publisher Template Manager. See the Oracle XML Publisher User's Guide.
6.
If Oracle Procurement Contracts is implemented, define security for the buyer.
Administrators can define the buyers that have access to the terms and conditions.
When a buyer doesn't have access to the terms and conditions, he sees just the PO
details in the PDF document. When the buyer has access to the terms and
conditions, he sees the PO details and the textual terms in the PDF document. See
the Oracle Procurement Contracts Implementation Guide for details.
Center-Led Procurement Setup
Oracle Purchasing provides features to enable consolidation of similar functions across
all of your global business units. This consolidation is typically referred to as
centralized procurement or sourcing service centers. The goal of which is to create
autonomous procurement business units within the enterprise.
Major Features:
Global Agreements
Global agreements are agreements (blanket purchase agreements or contract purchase
agreements) with a supplier that can be shared between business units. Global
agreements empower the centralized service unit to negotiate on behalf of some or all
other business units and store the negotiation outcome in a single document. This single
document can then be used for automatic sourcing of requisition demand from any
enabled business units.
Center-Led Procurement Automatic Sourcing
Sourcing rules, sourcing rule assignments and approved supplier lists (ASL) are created
in the owning business unit. The global agreements referenced by automatic sourcing
are then available for execution in all business units enabled by the buyer. Complete
process automation is achieved by defining sourcing rule assignments for the global
agreements in the executing business unit.
Center-Led Procurement Accounting
In a centralized procurement environment you may create a purchase order in one
operating unit, but require shipment to a different operating unit. Accounts are
provided to ensure proper financial reconciliation between the procuring business unit
and the receiving business unit using intercompany invoicing. This accounting requires
that a transaction flow is defined between the two organizations.
1-78 Oracle Purchasing User's Guide
Center-Led Procurement Step by Step:
Define Transaction Flows
Transaction flows define the procurement relationship between different operating
units. The details of this relationship define how the expenses are transferred from one
business unit to the other (could be a different ledger).
Defining a transaction flow consists of these steps:
1.
Define transaction flow
2.
Define intermediate nodes
3.
Define intercompany relationship
See "Transaction Setup" in the Oracle Inventory User's Guide for details on setting up
transaction flows.
Global Agreements Setup Steps
Global agreements are blanket purchase agreements and contract purchase agreements
which have been created to be used in a centralized procurement environment.
Defining a global agreement consists of these steps:
1.
To take full advantage of all centralized procurement features, set the profile HR:
Cross Business Groups to Yes at the site level.
2.
Define a supplier site for the supplier in each operating unit that will be defined as
a purchasing organization for the global agreement. The supplier site names do not
need to be the same as the supplier site name in the global agreement.
3.
Create a new blanket purchase agreement or contract purchase agreement with the
Global checkbox enabled. See: Entering Purchase Order Headers, page 4-40.
4.
Enable the the global agreement (select the purchasing organization and purchasing
site) for those operating units that are authorized to order referencing the global
agreement. See: Entering Purchase Agreement Information, page 4-55.
5.
Define sourcing rule assignments for the global agreement in the executing
operating unit. See: Defining Sourcing Rules, page 5-30
Global Buyer Setup Steps
Enterprises using centralized purchasing can set up a global buyer which can create,
update, and default onto purchasing documents. This enables buyers from multiple
business units to fully participate in these actions without redundant setup procedures.
1.
Define the global buyer as an employee in the business group that the buyer
belongs to using the Oracle Human Resources Enter Persons window.
Setting Up 1-79
2.
Define the global buyer as a buyer using the Oracle Purchasing Enter Buyers
window. This can be done in any business group.
3.
Set profile option HR: Cross Business Groups to Yes at the site level.
4.
Assign as many Oracle Purchasing responsibilities as required to this global buyer.
These responsibilities do not need to be linked to any specific business group.
Global Requester Setup Steps
Enterprises using centralized purchasing can set up a global requester. This enables
requisition creation from multiple business units (operating units).
1.
Set profile option HR: Cross Business Groups to Yes at the site level.
2.
Assign the Oracle Purchasing responsibility associated with the operating unit to
the requester. You can assign all that are needed.
3.
Requester selects the appropriate responsibility and creates the requisition.
Global Supervisor Setup Steps
Enterprises using centralized purchasing can set up a global supervisor to approve
purchase requisitions. This enables approvals from multiple business units.
Note: The global supervisor feature is only available to those
enterprises using the employee/supervisor approval path.
1.
Define the supervisor and assign to an approval group as you would normally set
them up.
2.
Set profile option HR: Cross Business Groups to Yes at the site level.
Once the profile is set to Yes, requisitions can be routed and forwarded to
individuals in different business groups. The action history reflects the names of
those who take action even though they are in different business groups.
Related Topics
Defining Purchasing Options, page 1-32
Controlling Purchasing Periods
Use the Control Purchasing Periods window to control the purchasing periods defined
in the Accounting Calendar window. You use purchasing periods to create journal
entries in your general ledger system. Purchasing lets you create journal entries only for
transactions you enter in an open purchasing period. You create general ledger journal
1-80 Oracle Purchasing User's Guide
entries when encumbering requisitions, purchase orders or accruing receipts.
If you use encumbrance or budgetary control, Purchasing verifies that the GL Dates you
provide on purchase order distributions and requisition distributions are within an
open purchasing period. See: Budgetary Control and Online Funds Checking, Oracle
General Ledger User's Guide.
If you use the Center-Led Procurement feature of Oracle Purchasing, you must insure
that the purchasing periods remain open in all business units that you are likely to
process purchase orders and receipts. See: Setup Center-Led Procurement, page 1-78.
Prerequisites
❒ Before using this window you should define your purchasing periods in the
Accounting Calendar window. See: Defining Calendars, Oracle General Ledger User's
Guide.
To control purchasing periods:
1.
Navigate to the Control Purchasing Periods window from the menu.
Purchasing displays the Period Status, Period Number, Fiscal Year, Period Name,
Begin Date, and End Date for each existing period.
2.
In the Period Status field, you have the following options:
Closed - Use this option to close this purchasing period. When you close a
purchasing period, Purchasing does not allow further accruals during this period.
Purchasing reverses the status of accrued purchase order lines so that you can
accrue them in the next period if you want.
Future - Use this option if you want to open this purchase period in the future. This
option is available only when the current status is Never Opened.
Setting Up 1-81
Never Opened - Purchasing displays this default status if you have not opened this
period in the past.
Open - Use this option to open this purchasing period.
Permanently Closed - Use this option if you do not want to open this period in the
future. This option is irreversible.
Related Topics
Defining Purchasing Options, page 1-32
Controlling the Status of AP Accounting Periods, Oracle Payables User's Guide
Expense Charge Account Rules
When determining the default charge account for a line with a destination type of
expense, the account generator may reference the charge account defined on the
employee record. If the account generator references the employee record, then the
Expense Charge Account Rules enable you to override one or multiple segments of that
default account based on the item category. This ability to override does not interfere
with the action of the account generator, but simply replaces those segments you
configure after the account generator has created a charge account.
Note: This feature is available for lines containing one-time or
inventory items as long as their destination type is expense.
The account segments defined in this window can only be used when the following
conditions are true:
•
Destination type is expense
•
Purchase order was not created from a requisition
•
Account was not set in preferences
•
Account was not successfully derived from project-based rules
•
Account was not successfully derived from the item setup
Setup Steps:
1.
Navigate to the Expense Charge Account Rules window.
1-82 Oracle Purchasing User's Guide
2.
Select the Item Category in Account Rule Value. Duplicate rules for the same
category are not permitted.
3.
Select the account Segment Name. Duplicate rules for the same account segment are
not permitted.
4.
Select the account in Segment Value that you want to override the employee charge
account segment for this item category.
5.
Save your work.
Choosing Workflow Options
Purchasing provides default functionality in its Oracle Workflow-automated processes.
This default functionality is described in the sections below. If you do not want this
default functionality, you can change it in the Oracle Workflow Builder.
Before you can use or modify any of the workflows in Purchasing, you need to set up
Oracle Workflow if you haven't done so already. See: Setting Up Oracle Workflow,
Oracle Workflow Guide.
Although Workflow is installed with Purchasing automatically, you need to complete
additional setup steps described in the Oracle Workflow Guide, if you did not already do
this as part of your installation or upgrade. Additionally install the Workflow Builder
only if you want to modify the default workflows that Purchasing provides or if you
just want to see and understand the workflow processes as they are graphically
displayed in the Builder.
Choosing Document Creation Options:
Prerequisite
•
Before you can use or modify any of the workflows in Purchasing, you need to set
Setting Up 1-83
up Oracle Workflow if you haven't done so already. See: Setting Up Oracle
Workflow, Oracle Workflow Guide.
Oracle Purchasing integrates with Oracle Workflow technology to create standard
purchase orders or blanket releases automatically from approved requisition lines. The
workflow for creating purchasing documents automatically is called PO Create
Documents. PO Create Documents includes important attributes which you should
evaluate and consider changing in the Oracle Workflow Builder. See: Customizing the
Automatic Document Creation Workflow, page E-162.
Workflow for Creating Purchase Orders and Releases, page E-161
Choosing a Process Mode for Automatic Document Creation
The item attribute Send PO Autocreation to Background is used by the Main
Requisition Approval Process in the PO Requisition Approval workflow. Send PO
Autocreation to Background determines whether the approval workflow should launch
automatic document creation in Background mode. By default, this item attribute is set to
Y for Yes. But you can change it to N for No if you'd rather process automatic document
creation in Online mode.
Background and online modes affect your system performance in different ways. For
more information on what Background and Online mean, see PO: Workflow Processing
Mode in the section Profile Options in Purchasing, page C-1.
Note: The profile option PO: Workflow Processing Mode sets the
processing mode for the entire approval workflow in Purchasing,
whereas the item attribute Send PO Autocreation to Background
enables you to change the processing mode specifically for automatic
document creation after requisition approval, regardless of how the
profile option PO: Workflow Processing Mode is set.
If you want to keep the default mode of Background
1.
Use the Submit Requests window in the System Administrator responsibility to
start the Workflow Background Process, which must be running for Background
mode.
Important: Since the item attribute Send PO Autocreation to
Background contains a default value of Y-which means automatic
document creation occurs in Background mode-you must start the
Workflow Background Process if you are going to keep the default.
You can submit the process for all workflows or just for a particular workflow, in
this case the PO Requisition Approval workflow. See: To Schedule Background
Engines, Oracle Workflow Guide.
1-84 Oracle Purchasing User's Guide
If you want to change the default mode to Online
1.
Start the Oracle Workflow Builder and open the PO Requisition Approval
workflow.
See: Opening and Saving Item Types, Oracle Workflow Guide.
2.
Select the item attribute Send PO Autocreation to Background and open its
Properties window.
3.
Change its Default value from Y to N.
Automatic document creation, when launched from the requisition approval
workflow process, will now perform in Online mode.
Deciding If You Want to Use the Timeout Feature
Prerequisite
•
Before you can use or modify any of the workflows in Purchasing, you need to set
up Oracle Workflow if you haven't done so already. See: Setting Up Oracle
Workflow, Oracle Workflow Guide.
The Timeout feature in the approval workflow enables you to specify a period of time
after which, if no response has yet come from an approver, a reminder is sent. You can
send up to two reminders to an approver using the Timeout feature. You can also
specify that after a certain period of time, the document is forwarded automatically to
the next approver in the hierarchy. You can optionally set up this feature through the
Oracle Workflow Builder.
If you don't set up the Timeout feature, the approval workflow will not time out; it will
simply wait to receive a response from each approver.
To set up approval reminders using the Timeout feature
1.
Start the Workflow Builder and open the PO Approval workflow for purchase
orders or the PO Requisition Approval workflow for requisitions.
See: Opening and Saving Item Types, Oracle Workflow Guide.
2.
Open any of the following activities' Properties windows and enter a Timeout
period (for instructions, see the Oracle Workflow Guide, Oracle Workflow Guide):
•
To enable the Timeout feature in the PO Approval workflow, modify the
following activities in the Notify Approver subprocess by entering a Timeout
period in their Properties windows: Approve PO Notification, PO Approval
Reminder 1, and PO Approval Reminder 2.
•
To enable the Timeout feature in the PO Requisition Approval workflow,
modify the following activities in the Notify Approver subprocess by entering a
Timeout period in their Properties windows: Approve Requisition Notification,
Setting Up 1-85
Requisition Approval Reminder1, and Requisition Approval Reminder2.
For example, you enter the following Timeout days in all three purchase order
approval notifications as follows:
•
Approve PO Notification - 3 days
•
PO Approval Reminder 1 - 2 days
•
PO Approval Reminder 2 - 1 day
In this example, the first notification, Approve PO Notification, times out after 3
days if the approver does not take an action on the notification, and PO
Approval Reminder 1 sends the reminder notification. PO Approval Reminder
1 times out after 2 days, and PO Approval Reminder 2 times out after 1 day.
Then the workflow looks for the next approver.
3.
Save your changes.
The Workflow Background Process must be running for the Timeout feature to take
effect.
See: Using the Workflow Background Engine, page 1-87.
Modifying Change Order Workflow Options:
Prerequisite
•
Before you can use or modify any of the workflows in Purchasing, you need to set
up Oracle Workflow if you haven't done so already. See: Setting Up Oracle
Workflow, Oracle Workflow Guide.
Purchasing integrates with Oracle Workflow technology to let you define what changes
to purchase orders or releases-for example, to amounts, suppliers, or dates-require full
reapproval. All of the workflow processes and functions relating to change orders can
be found within the PO Approval workflow. The change order workflow process uses
the same reapproval rules already defined in Purchasing to determine whether a
document, depending on its document type, requires reapproval. If you want to change
the reapproval rules that the change order workflow uses, you can change those
reapproval rules that determine what percentage change to a unit price, quantity, or
document total requires reapproval. You can optionally change these rules by
modifying their attributes in the Oracle Workflow Builder. See the section Customizing
the Change Order Workflow in: Workflow Processes for Approving Change Orders, page
E-133.
The change order workflow requires that Archive on Approve be chosen in the
Document Types window. The Archive on Approve option copies the purchase order
information into the archive tables in Purchasing every time you approve or reapprove
a purchase order. The change order workflow needs to use this archive information to
1-86 Oracle Purchasing User's Guide
compare a document before and after you make a change.
Starting the Send Notifications for Purchasing Documents Process:
The workflow process, Send Notifications for Purchasing Documents, looks for
documents that are incomplete, rejected, or in need of reapproval and sends
notifications to the appropriate people of the document's status. For these notifications
to be sent, you need to start the concurrent program process Send Notifications for
Purchasing Documents if you haven't done so already as part of your standard setup.
See: Send Notifications for Purchasing Documents, page 12-34.
Using the Workflow Background Engine:
Prerequisite
•
qBefore you can use or modify any of the workflows in Purchasing, you need to set
up Oracle Workflow if you haven't done so already. See:Setting Up Oracle
Workflow, Oracle Workflow Guide.
The Workflow Background Engine must be running if you are using the following
options:
•
The Background mode for Purchasing approvals. By default the profile option PO:
Workflow Processing Mode is set to Background. You must start the Workflow
Background Engine in order for the Background mode to work. See: Profile Options
in Purchasing, page C-1.
•
The Timeout feature in any workflow. The Timeout feature sends reminder
notifications.
•
The Background mode for the item attribute Send PO Autocreation to Background
in the PO Requisition Approval workflow. See: Choosing a Process Mode for
Automatic Document Creation, page 1-84.
•
The Confirm Receipts Workflow Select Orders process. This is a process you submit
through the Submit Request window. If you submit it, the Workflow Background
Engine must also be running. See: Confirm Receipts Workflow Select Orders
Process, page 12-3.
If you are using the Workflow Background Engine for the Timeout feature, it is
reasonable to schedule the process to run once or twice a day. If you are using it for
Background mode, you should schedule it to run much more frequently; a workflow
activity that is set to Background mode doesn't begin until the Workflow Background
Engine picks it up for processing.
If you want to use the Workflow Background Engine for both requisitions and purchase
orders, you need to submit it twice, once for PO Approval and once for PO Requisition
Approval. Or, by not specifying an item type, you can submit it for all item types.
Setting Up 1-87
Report / Request Submission:
In the Submit Requests window, in the System Administrator responsibility, select
Workflow Background Process in the Name field.
See: To Schedule Background Engines, Oracle Workflow Guide.
iProcurement Setup Windows
The following windows are part of Oracle iProcurement setup. Located in the Setup
menu in Oracle Purchasing, they are used only by iProcurement. iProcurement is a
self-service product used to create requisitions on the Web. These requisitions are
turned into purchase orders in Purchasing. Use these windows only if you are setting
up Oracle iProcurement:
•
Define Information Template - enables you to create additional-information templates.
Note: Information templates are not the same as requisition
templates in Purchasing. Requisition templates in Purchasing are a
pre-filled listing of frequently ordered items. Information templates
are additional information templates that a requester in
iProcurement completes for certain items.
•
Item Source - used to define internal or external catalog sources for items.
•
Define Catalog Server Loader Values - enables you to define which catalog data to load
into the system.
•
Define Catalog Server for External Suppliers - enables communication with external
suppliers outside the firewall.
•
Realms - used to create user access privileges to internal or external catalogs.
For instructions on these windows, see the Oracle iProcurement Implementation Manual.
Oracle Services Procurement
Note: Oracle Services Procurement requires a separate license from
Oracle Purchasing.
This section discusses setting up Oracle Services Procurement. Oracle Services
Procurement enables a streamlined process for sourcing, procuring and managing of
services, including contingent labor, facilities management, marketing, information
technology, and consulting services. These commodity areas usually account for a large
percentage of an organization's spend. Oracle Services Procurement and Oracle
1-88 Oracle Purchasing User's Guide
Purchasing enable key business functions in the services procurement flow:
•
Preferred supplier identification and management
•
Long term agreements for fixed price and rate based services
•
Purchase order management
•
Time card management and payment request authorizations
•
Invoice generation and payment
Services Procurement Setup Step by Step:
The following setup steps are needed to implement Oracle Services Procurement in
Oracle Purchasing.
1.
Install Oracle Services Procurement and the latest Oracle Applications Financials
family pack. (Required)
2.
Set profile PO: Enable Services Procurement to Yes. (Required) See: Purchasing
Profile Options, page C-1.
3.
Define services procurement related jobs in Human Resources. (Required) See:
Representing Jobs and Positions, Oracle HRMS Enterprise and Workforce Management
Guide.
4.
Define Job and Category Association. (Required) See: Define Job and Category
Association, page 1-90.
5.
Enable Oracle Time & Labor for time cards:
•
Install and configure Oracle Time & Labor. (Optional)
•
Create contractors for services procurement in Oracle Human Resources. (
Optional) See: Entering a New Person, Oracle HRMS Enterprise and Workforce
Management Guide.
6.
Set profile PO: UOM Class for Temp Labor Services. (Required) See: Purchasing
Profile Options, page C-1.
7.
Define Price Differential lookup codes. (Required)
This step involves the following tasks:
1.
Using the Application Developer responsibility, navigate to the Application
Object Library Lookups window.
2.
Enter PRICE DIFFERENTIALS for the lookup Type.
Setting Up 1-89
3.
Enter Price Differentials for the lookup Meaning.
4.
Enter Oracle Purchasing for the lookup Application.
5.
Define your rate price differential lookup. Refer to the online help for details.
Note: Seeded lookup codes STANDARD and FIXED PRICE are
not available for use.
8.
Define line types for temp labor purchase basis. (Required) See: Defining Line
Types, page 1-61.
9.
Set system option profiles for notifications (Optional):
•
PO: Amount Billed Threshold Percentage
•
PO: Contractor Assignment Completion Warning Delay
See: Purchasing Profile Options, page C-1.
10. Consider scheduling the Retrieve Time and Labor from OTL process. (Optional)
See: Retrieve Time from Oracle Time & Labor (OTL), page 12-31.
Define Job and Category Association
Part of the setup of Oracle Services Procurement is to associate a purchasing category
set to an HR job. This is required for the entry of temp labor line types.
Prerequisites
❒ Install and enable Oracle Services Procurement. See: Procurement Services Setup
Step by Step, page 1-88.
❒ Define jobs. See: Representing Jobs and Positions, in your Oracle HRMS
documentation set.
❒ Define categories. See: Defining Categories, Oracle Inventory User's Guide.
To define associations:
1.
Navigate to the Job Category Association window from the menu.
2.
Click Create to define a new association.
You can search for existing associations by selecting Job, Category, or Business
group. You then modify the association by clicking the Update icon.
1-90 Oracle Purchasing User's Guide
3.
Enter or select the Job.
You can only enter jobs belonging to your business group unless the profile HR:
Cross Business Groups is set to Yes.
4.
Enter or select the Category.
5.
Enter a descriptive title in Job Description.
6.
Enter a narrative regarding this job in Job Details.
7.
Enter an Inactive Date.
8.
Save your work.
Related Topics
Purchasing Services, page 1-58
Setting Up 1-91
2
Approval, Security, and Control
Setting Up Document Approval and Security
Human Resources with Purchasing
Human Resources and Purchasing share job and position information if they are
installed together. You should consider your requirements from both perspectives
before deciding on an approval/security structure.
Human Resources uses jobs to classify categories of personnel in your organization, and
associates information like the exempt/non-exempt code and EEO code with individual
jobs. Examples of a typical job include Vice President, Buyer, and Manager. Positions
represent specific functions within these job categories. Examples of typical positions
associated with the Vice President job include Vice President of Manufacturing, Vice
President of Engineering, and Vice President of Sales.
Human Resources uses position hierarchies to define management line reporting and
control access to employee information.
Review your Personnel department's system requirements before you decide how you
want to use positions, jobs, and position hierarchies in Purchasing.
Using Approval Hierarchies
Approval hierarchies let you automatically route documents for approval. There are
two kinds of approval hierarchies: position hierarchy and employee/supervisor
relationships.
If you choose to use employee/supervisor relationships, you define your approval
routing structures as you enter employees using the Enter Person window. In this case,
Purchasing does not require that you set up positions.
If you choose to use position hierarchies, you must set up both jobs and positions. While
positions and position hierarchies require more initial effort to set up, they are easy to
Approval, Security, and Control 2-1
maintain and allow you to define approval routing structures that remain stable
regardless of how frequently individual employees leave your organization or relocate
within it.
Using Security Hierarchies
Security hierarchies let you control who has access to certain documents. For example,
you can create a security hierarchy in which only you and other buyers in that hierarchy
can view each other's purchase orders.
Security hierarchies are not an alternative to approval hierarchies, but something
different altogether. Changes you make to a security hierarchy do not affect the
approval hierarchy and vice versa.
If you want to specify a Security Level of Hierarchy for any of your document types,
you must first define all positions which should have access to the documents you want
to restrict in this manner. (Even if you are using jobs to route documents for approval,
you must define positions before you can enable this Security Level). You then define a
security position hierarchy, and specify it in the Purchasing Options window.
Approval Workflow
Purchasing uses Oracle Workflow technology to handle approvals. Workflow works in
the background, using the approval controls and hierarchies you define in the setup
steps below to route documents for approval. Because Workflow handles your approval
process in the background, you can use Oracle Workflow Builder's easy interface to
modify your approval process. See: Purchase Order Approval Workflow, page E-89.
See: Requisition Approval Workflow, page E-50.
Approval and Security Setup Steps
To Setup Approval and Security:
1.
Use the Financials Options window to indicate whether you want to route
documents for approval using position hierarchies or employee/supervisor
relationships. This decision applies only to the Business Group you choose for your
Purchasing installation in the Financials Options window. See: About Financials
Options, Oracle Payables User's Guide.
If you choose to use position hierarchies, you must define positions in addition to
jobs. You later build your hierarchies by referencing these positions.
2.
Use the Job window to create each of the job titles in your organization (for
example: Buyer, Supply Base Engineer). If you are not using positions, you assign
one or more employees to each job. If you are using positions, you assign one or
more positions to each job, and later assign one or more employees to each position.
2-2 Oracle Purchasing User's Guide
Important: You assign authorization rules to jobs or positions based
on your decision in Step 1. It is important to ensure that your
job/position infrastructure supports the different approval levels in
your organization.
For example, if your purchasing staff includes a Junior Buyer, a Senior Buyer, a
Supply Base Manager, and a Purchasing Manager, all of whom have different
authorization levels for different document types, you should define a different job
or position for each role. If your purchasing department is comprised of five
employees with common authorization limits, then a single approval group (see
steps 7 and 8) could be given to those five jobs or positions. See: Representing Jobs
and Positions, Oracle HRMS Enterprise and Workforce Management Guide.
3.
Use the Position window to create each of the positions in your organization. This
step is required if you plan to use either security or position approval hierarchies.
See: Representing Jobs and Positions, Oracle HRMS Enterprise and Workforce
Management Guide.
4.
Use the Position Hierarchy window to build and administer your position
hierarchies. There are two distinct uses for position hierarchies in Purchasing: 1)
document approval routing and 2) document security control. You can use a single
position hierarchy for both purposes. See: Representing Jobs and Positions, Oracle
HRMS Enterprise and Workforce Management Guide. See also: Position Hierarchies,
page 2-6.
5.
Use the Purchasing Options window to choose a single security hierarchy for your
installation if you want to use the document Security Level of Hierarchy for any or
all of your document types. See: Defining Control Options, page 1-33. For
additional overview information, see Document Security and Access, page 2-7
and Approval Routing, page 2-10.
Important: Note that a security hierarchy controls which positions
(and therefore which employees) have access to a particular
document type. It does not control whether an employee has the
authority to approve a document or perform other actions. An
Off-line approver is a valid employee with approval authority, but
without access to the relevant form. An On-line approver is an
active employee with approval authorization, and with access to
the relevant form.
6.
Use the Document Types window to specify distinct security and approval controls
for each document type/subtype. See: Defining Document Types, page 1-66.
7.
Use the Approval Groups window to define approval authorization rules. See:
Approval, Security, and Control 2-3
Defining Approval Groups, page 1-20.
8.
Use the Assign Approval Groups window to associate approval rules with a
specific job or position and a document type. See: Assigning Approval Groups,
page 1-23.
9.
Use the Enter Person window to assign employees to jobs or positions. If you are
not using position approval hierarchies for document routing, you must provide
the employee's supervisor. See: The online help for the Enter Person window, Enter
Person, Oracle HRMS Enterprise and Workforce Management Guide.
10. Run the Fill Employee Hierarchy process. This process creates an
employee-populated representation of your approvals hierarchy and should be run
whenever you make a structural or personnel change to your hierarchies or
assignments. You can set up this process to run automatically at predefined
intervals. See: Fill Employee Hierarchy Process, page 12-6.
Changing the Approval Hierarchy
When you make a change to an approval hierarchy-for example, by adding or removing
an approver-existing documents still use the previous hierarchy before you changed it.
Future documents use your changed hierarchy. Remember that every time you change
a hierarchy, you must run the Fill Employee Hierarchy process.
If you are using position hierarchy approvals, and you move an employee out of a
position that's in the approval hierarchy, assign another employee to the vacant
position. You can remove a position altogether if it has no positions below it; you can
also end-date the position or create a new version of the hierarchy. You can build a new
version of a hierarchy by creating a new version of it or by copying an existing
hierarchy.
If you are using employee/supervisor approvals, and you remove an employee or
supervisor from an employee/supervisor chain, you must rebuild the
employee/supervisor chain.
See: Change a Position Hierarchy, Oracle HRMS Enterprise and Workforce Management
Guide.
2-4 Oracle Purchasing User's Guide
Approval and Security Setup Matrix
Related Topics
Define a Position, Oracle HRMS Enterprise and Workforce Management Guide
Create a Position Hierarchy, Oracle HRMS Enterprise and Workforce Management Guide
Create a New Version of a Position Hierarchy, Oracle HRMS Enterprise and Workforce
Management Guide
Approval, Security, and Control 2-5
Copy an Existing Hierarchy, Oracle HRMS Enterprise and Workforce Management Guide
Delete a Position Hierarchy, Oracle HRMS Enterprise and Workforce Management Guide
Run the Position Hierarchy Report, Oracle HRMS Enterprise and Workforce Management
Guide
Position Hierarchies
Use the Positions window to create each of the positions in your organization. This step
is required if you plan to use either security or position approval hierarchies. See:
Representing Jobs and Positions, Oracle HRMS Enterprise and Workforce Management
Guide.
All the positions you want to include in your hierarchies must be included in the
Business Group you selected in the Financials Options window.
A position can be added to multiple hierarchies.
Use the Position Hierarchy window to build and administer your position hierarchies.
There are two distinct uses for position hierarchies in Purchasing: 1) document approval
routing and 2) document security control. You can use a single position hierarchy for
both purposes. See: Representing Jobs and Positions, Oracle HRMS Enterprise and
Workforce Management Guide.
When you build your hierarchies, always begin with the most senior position and work
down. Use your organization charts and predefined special approval paths to facilitate
this process.
While you can include a position in many hierarchies, it can appear only once within a
single hierarchy.
If you want to use the document Security Level of Hierarchy for any or all of your
document types, the hierarchy you specify in the Purchasing Options window must
include all the positions in your organization that should have access to these
documents. See: Defining Control Options, page 1-33.
If you build multiple hierarchies for use in the approval process, it is useful to give
them meaningful names. This helps employees quickly choose the appropriate approval
path when moving documents from one approval hierarchy to another.
For example, you can define a special approval hierarchy including a Facilities Manager
and Chief Financial Officer for all plant and property purchases. Name this hierarchy
"Facilities." Your default approval hierarchy for standard purchase orders (called
"Purchasing") includes only your procurement staff and a Vice President of Operations,
none of whom have the authority to approve plant and property items. When a buyer
attempts to approve a standard purchase order for these items, Purchasing will require
a forward-to employee. Assuming your setup allows changes to the default approval
hierarchy for standard purchase orders, instruct buyers to route these documents to the
"Facilities" approval hierarchy.
Before you can reference your position hierarchies in Purchasing, you must assign
2-6 Oracle Purchasing User's Guide
employees to the referenced positions with the Enter Person window and then use the
Submit Requests window to run the Fill Employee Hierarchy process. See: Fill
Employee Hierarchy Process, page 12-6.
Related Topics
Setting Up Document Approval and Security, page 2-1
Document Security and Access
Purchasing lets you control which groups of employees have access to each document
type, and what modification/control actions these individuals can take once they gain
access. Use the Document Types window to specify your security options. See: Defining
Document Types, page 1-66.
You can restrict document access based on the following Security Level options for each
document type:
Public
All system users can access the document
Private
Only the document owner and subsequent
approvers can access the document
Purchasing
Only the document owner, subsequent
approvers, and individuals defined as buyers
can access the document
Hierarchy
Only the document owner, subsequent
approvers, and individuals included in the
security hierarchy can access the document
Within the installation security hierarchy, you
can access only those documents that you or
your reporting employees own
Important: You must define one position hierarchy including all
positions that require access to the document types you want to control
with a Security Level of Hierarchy. You need to specify this hierarchy
in the Purchasing Options window before you can choose a Security
Level of Hierarchy for a given document type. See: Defining Control
Options, page 1-33.
In addition to the Security Level, you specify an Access Level to control what
modification/control actions you can take on a particular document type once you gain
access. Document owners always have Full access to their documents. The Access Level
Approval, Security, and Control 2-7
options include:
View Only
Accessing employees can only view this
document
Modify
Accessing employees can view, modify, and
freeze this document
Full
Accessing employees can view, modify,
freeze, close, cancel, and final-close this
document
Both the Security Level and Access Level apply to existing documents. Anyone with
menu access to the document entry windows can create a document. These individuals
then become the document owners unless they change the buyer name.
The Security Level and Access Level work together. For example, if you assign a
Security Level of Public and an Access Level of Full to standard purchase orders, then
all users can access all standard purchase orders from document entry, view, and
control windows.
Important: While any document is in the approval process (regardless
of Access or Security Level), no one can access it using an entry
window.
If you change the Access Level to View Only for a document type, then all users (except
for the document owner whose Access Level is always Full, and approvers who can
optionally modify the document when it is in their approval queue based on the
document control Approver Can Modify) can access these documents in the view
windows, but not in the document entry or control windows. If you change the Security
Level for a document type to Private, then only the document owner and subsequent
approvers can access these documents.
Finally, the Security Level and Access Level work with the Approver Can Modify
option that you choose in the Document Types window. If this control is set to Yes for a
particular document type (even if the Access Level is View Only), then all approvers
can modify documents in their pending approval queue. Once you approve a
document, you cannot make further modifications.
The following tables describe the effects of all possible Security Level and Access Level
combinations in which groups of employees can access documents using the view,
entry, or control windows.
Public Document Security Access Level Matrix
2-8 Oracle Purchasing User's Guide
Access
Level
View
Windows
Entry
Window:
Doc NOT in
Approval
Entry
Window:Doc
in Approval
Control
Window:Fre
eze/ Close
Control
Window:
Cancel/ Final
Close
View Only
All
Owner
None
Owner
Owner
Modify
All
All
None
All
Owner
Full
All
All
None
All
All
Private Document Security Access Level Matrix
Access
Level
View
Windows
Entry
Window:
Doc NOT in
Approval
Entry
Window:Doc
in Approval
Control
Window:Fre
eze/ Close
Control
Window:
Cancel/ Final
Close
View Only
Owner
Approver
Owner
None
Owner
Owner
Modify
Owner
Approver
Owner
None
Owner
Owner
Full
Owner
Approver
Owner
None
Owner
Owner
Purchasing Document Security Access Level Matrix
Access
Level
View
Windows
Entry
Window:
Doc NOT in
Approval
Entry
Window:Doc
in Approval
Control
Window:Fre
eze/ Close
Control
Window:
Cancel/ Final
Close
View Only
Owner
Approver
Buyers
Owner
None
Owner
Owner
Modify
Owner
Approver
Buyers
Owner
Approver
Buyers
None
Owner
Buyers
Owner
Buyers
Approval, Security, and Control 2-9
Access
Level
View
Windows
Entry
Window:
Doc NOT in
Approval
Entry
Window:Doc
in Approval
Control
Window:Fre
eze/ Close
Control
Window:
Cancel/ Final
Close
Full
Owner
Approver
Buyers
Owner
Approver
Buyers
None
Owner
Buyers
Owner
Buyers
Hierarchy Document Security Access Level Matrix
Access
Level
View
Windows
Entry
Window:
Doc NOT in
Approval
Entry
Window:Doc
in Approval
Control
Window:Fre
eze/ Close
Control
Window:
Cancel/ Final
Close
View Only
Owner
Approver
Hierarchy
Owner
None
Owner
Owner
Modify
Owner
Approver
Hierarchy
Owner
Hierarchy
None
Owner
Hierarchy
Owner
Full
Owner
Approver
Hierarchy
Owner
Hierarchy
None
Owner
Hierarchy
Owner
Hierarchy
Approval Routing
Purchasing lets you route documents for approval based on either position hierarchies
or employee/supervisor relationships. In both cases, you control whether documents
are routed to the first employee with enough authority to approve the document (Direct
method), or if they must pass through each level of the associated hierarchy or
reporting infrastructure regardless of authority (Hierarchy method). You can also
control whether document owners are able to approve the documents they create.
Use the Document Types window to specify routing controls by document type. See:
Defining Document Types, page 1-66.
Owner Can Approve
Prevent or allow document owners to approve the documents they create.
2-10 Oracle Purchasing User's Guide
Can Change to Forward-To
Prevent or allow changes to the default forward-to employee.
If you are using position approval hierarchies and there is more than one employee
associated with a particular position, Purchasing defaults a Forward-To employee in the
Approvals window based on alphabetic order.
If you are using position approval hierarchies and allow changes to the Forward-To
employee, the list of values in the Approvals window includes all employees in the
selected hierarchy.
If you are routing documents using employee/supervisor relationships and you allow
changes to the Forward-To employee, the list of values in the Approvals window
includes all employees defined in the Business Group you specify in the Financials
Options window.
Can Change Forward-From
Prevent or allow changes to the default forward-from employee. This control applies
only to requisitions.
If you allow changes to the forward-from employee, Purchasing restricts the
Forward-From list of values in the Approvals window to requestors associated with the
requisition you are trying to approve.
This flexibility allows you to build an approval history including the original requestor
rather than the preparer.
Can Change Approval Hierarchy
This control applies only if you are using position approval hierarchies. Prevent or
allow changes to the default approval hierarchy.
If you allow changes to the default approval hierarchy, the list of values in the
Approvals window includes all hierarchies defined in the Business Group you specify
in the Financials Options window.
Important: When you submit a document for approval, Purchasing
verifies that you are included in the default position hierarchy for your
document. If you are not included in this hierarchy, and Allow Change
to Approval Hierarchy is set to No, you cannot approve the document
or route it to another employee.
Forward Method
Select Direct to route documents to the first employee with enough authority to
approve them. Select Hierarchy to route documents to the next person in the approval
Approval, Security, and Control 2-11
hierarchy or reporting infrastructure regardless of authority.
Approval authority is determined by the approval rules you define in the Define
Approval Groups and Assign Approval Groups windows. For example, a hierarchy of
three approvers consists of one with a $1,000 approval limit, one with a $5,000 approval
limit, and one with a $10,000 approval limit. In a Direct forward method, a document
totalling $7,000 is routed directly to the approver with the $10,000 approval limit. In a
Hierarchy forward method, the document routes to all three approvers, stopping at the
$10,000 approver.
Default Hierarchy
This control applies only if you are using position approval hierarchies. You must
specify a default approval hierarchy for each document type.
Combine these controls to build an approval routing policy that is as strict or as flexible
as your needs warrant. For example, if you set Allow Change to Approval Hierarchy
and Allow Change to Forward-To to No, Purchasing forces employees to route all
documents according to the approval hierarchy or employee / supervisor relationships
that you define. If you set these controls to Yes, Employees can route documents for
approval with a high degree of autonomy and flexibility within the structures you
define.
Related Topics
About Financials Options, Oracle Payables User's Guide
Submitting a Document for Approval, page 2-32
Approval Authorization Control
You can define flexible groups of authorization rules (Approval Groups) which you
assign to specific document types and jobs or positions (based on your
implementation). These authorization rules are comprised of include/exclude and
amount limit criteria that you specify for Document Total, Account Range, Item Range,
Item Category Range, and Location. You can associate multiple approval groups
(collections of authorization rules) with a single document/job or position combination
to create unique approval structures in support of your organization's signature
policies. Finally, you link employees to authorization limits when you assign them to
jobs or positions.
When you attempt to approve a document, Purchasing evaluates the authorization
rules associated with your job or position and the document type to determine whether
you have adequate authority. If you do not have enough authority to approve the
document, Purchasing provides default routing information based on your approval
setup. Depending on the level of routing flexibility you specify, approvers may or may
not be able to change these defaults.
2-12 Oracle Purchasing User's Guide
Related Topics
Defining Approval Groups, page 1-20
Assigning Approval Groups, page 1-23
Defining Approval Authorization Rules, page 2-13
Using Approval Assignments, page 2-15
Defining Approval Authorization Rules
An approval group is a set of authorization rules comprised of include/exclude and
amount limit criteria for the following Object Types: Document Total, Account Range,
Item Range, Item Category Range, and Location. For each position or job, you
ultimately associate these approval groups with document types to implement your
authorization rules.
To build an approval group, first assign a descriptive name that will make it easy to
reference in the Assign Approval Groups window. You can then add multiple rules for
the same Object Type to your approval group. When you associate two or more rules
for the same Object Type with a single job/position and document type combination,
Purchasing uses the most restrictive criteria during the authorization check.
An Account Range rule defines the distribution accounting flexfield ranges and their
amount limits that the approval group can approve, and an Include rule is required for
at least one approval group associated with each document type in the Assign
Approval Groups window.
•
To include an account range, choose this Object Type with an Approval Type of
Include, enter an Amount Limit, and specify the Value Low and Value High for
your range.
Important: The Amount Limit that you specify for an Account
Range Include rule applies to the sum of all accounts included in
the range. It does not apply to each individual account within the
range.
•
To exclude an account range, choose this Object Type with an Approval Type of
Exclude and specify the Value Low and Value High for your range. The approval
group will be unable to approve documents including these accounting
distributions, even if your enabling Include rule contains these accounts within its
upper and lower bounds.
A Document Total rule defines the maximum document amount that the approval
group can approve. This type of rule is optional for all but a blanket purchase
agreement approval group. If you want to specify a Document Total, choose this Object
Type with an Approval Type of Include and enter an Amount Limit.
Approval, Security, and Control 2-13
Note: The Document Total rules are the only rules applied to blanket
purchase agreements.
An Item Range rule defines the items and their amount limits that the approval group
can approve. An Item Range rule is not required; approval groups can approve
documents for all items by default.
•
To include an item range, choose this Object Type with an Approval Type of
Include, enter an amount limit, and specify the Value Low and Value High for your
range. An Item Range Include rule allows you to specify approval amount limits for
individual items or item ranges, and the Amount Limit you enter applies to the sum
of all items within the range. Also, an Item Range Include rule does not implicitly
exclude items that are not referenced in the rule.
•
To exclude an Item Range, choose this Object Type with an Approval Type of
Exclude and specify the Value Low and Value High for your range. The approval
group will be unable to approve documents including these items.
An Item Category Range rule defines the item categories and their amount limits that
the approval group can approve. An Item Category Range rule is not required;
approval groups can approve documents for all item categories by default.
•
To include an Item Category Range, choose this Object Type with an Approval
Type of Include, enter an Amount Limit, and specify the Value Low and Value
High for your range. An Item Category Range include rule allows you to specify
approval amount limits for individual item categories or item category ranges, and
the Amount Limit you enter applies to the sum of all item categories within the
range. Also, an Item Category Range include rule does not implicitly exclude item
categories that are not referenced in the rule.
•
To exclude an Item Category Range, choose this Object Type with an Approval
Type of Exclude and specify the Value Low and Value High for your range. The
approval group will be unable to approve documents including these item
categories.
A Location rule defines the ship-to and deliver-to locations and their amount limits that
this approval group can approve. Purchasing verifies the ship to location for purchase
orders and releases, and the deliver to location for requisitions. A Location rule is not
required; approval groups can approve documents for all ship to and deliver to
locations by default.
•
To include a Location rule, choose this Object Type with an Approval Type of
Include, enter an Amount Limit, and specify the Location you want to control using
the Value Low field. A Location Include rule allows you to specify approval
amount limits for individual ship to and deliver to locations. It does not implicitly
exclude locations not referenced in the rule.
2-14 Oracle Purchasing User's Guide
•
To exclude a ship to or deliver to location, choose this Object Type with an
Approval Type of Exclude and specify the location using the Value Low field. The
approval group will be unable to approve purchase orders and releases that include
this location as a ship to, or requisitions that include this location as a deliver to.
To illustrate approval group implementation, assume a Purchasing department is
comprised of three kinds of purchasing professionals with a corresponding position
defined for each in Purchasing: Senior Buyers (who purchase all manufacturing and
MRO items/services with a $50,000 document limit), MRO Buyers (who purchase all
non-manufacturing items and services with a $10,000 document limit), and Junior
Buyers (who purchase all but one manufacturing item category with a $25,000
document limit).
•
This organization uses four two-segment item categories: MRO-SERVICE,
MRO-SUPPLIES, MFG-GENERAL, and MFG-SPECIAL.
•
First, define one approval group called "Buyer Master" containing a single Account
Range Include rule for all accounting distribution ranges with a $50,000 Amount
Limit.
•
You can then define a supplementary approval group called "MRO Buyer"
containing two rules: 1) a Document Total rule with an Amount Limit of $10,000
and 2) an Item Category Range rule excluding all item categories with MFG as the
first segment.
•
Finally, you can define another supplementary approval group called "Junior
Buyer" containing three rules: 1) a Document Total rule with an Amount Limit of
$25,000, 2) an Item Category Range rule excluding all item categories with MRO as
the first segment, and 3) another Item Category Range rule excluding the
MFG-SPECIAL category.
Related Topics
Defining Approval Groups, page 1-20
Defining Approval Assignments, page 1-23
Approval Authorization Rules, page 2-12
Using Approval Assignments, page 2-15
Using Approval Assignments
Use the Assign Approval Groups window to associate approval groups with a specific
job or position and a document type including: Purchase Requisition, Internal
Requisition, Standard Purchase Order, Planned Purchase Order, Blanket Purchase
Agreement, Contract Purchase Agreement, Scheduled Release, and Blanket Release.
You can associate multiple approval groups with a single document type/job or position
combination. Whenever you associate two or more approval groups with a single
Approval, Security, and Control 2-15
document type/job or position combination, Purchasing uses the most restrictive rule to
evaluate authorization limits.
Important: While individual approval groups do not require an
enabling Account Range Include rule, every document type for each
job/position must be associated with at least one approval group with
this characteristic. Otherwise, employees in the associated job or
position will be unable to approve this document type.
If no approval groups are associated with a particular document type for a given job or
position, then employees assigned to this job or position will be unable to approve
documents of this type.
Example
If you want to specify the approval assignments for the Purchasing department
described in the Defining Approval Authorization Rules document (See: Defining
Approval Authorization Rules, page 2-13), you can begin with the Senior Buyer
position. Assuming Senior Buyers should be able to approve all document types, you
can set up the control assignments as follows:
Control Function
Approval Group
Start Date
Blanket Purchase Agreement
Buyer Master
dd-MON-yy
Blanket Release
Buyer Master
dd-MON-yy
Contract Purchase Agreement
Buyer Master
dd-MON-yy
Internal Requisition
Buyer Master
dd-MON-yy
Planned Purchase Order
Buyer Master
dd-MON-yy
Purchase Requisition
Buyer Master
dd-MON-yy
Scheduled Release
Buyer Master
dd-MON-yy
Standard Purchase Order
Buyer Master
dd-MON-yy
This plan allows Senior Buyers to approve all document types for all account ranges
with a maximum amount limit of $50,000. The Senior Buyer position can approve all
locations, items, and item categories by default.
If Junior Buyers can approve releases (and no other document types) based on the
authorization criteria you specified in the Defining Approval Authorization Rules
document, set up the Control Assignments as follows for this position:
2-16 Oracle Purchasing User's Guide
Control Function
Control Group
Start Date
Blanket Release
Buyer Master
dd-MON-yy
Blanket Release
Junior Buyer
dd-MON-yy
Scheduled Release
Buyer Master
dd-MON-yy
Scheduled Release
Junior Buyer
dd-MON-yy
In this case, Junior Buyers can approve up to $25,000 for each Blanket and Scheduled
Release including all but one category of manufacturing items. These employees cannot
approve Standard Purchase Orders, Planned Purchase Orders, Purchase Requisitions,
Internal Requisitions, Blanket Purchase Agreements, or Contract Purchase Agreements
regardless of document total or content. Finally, Junior Buyers are unable to approve
any document type that includes MRO item categories.
Important: Note that we assigned two approval groups to each
document type in this example. The Buyer Master approval group lets
Junior Buyers approve releases by providing an enabling Account
Range Include rule. The Junior Buyer approval group introduces the
specific authorization restrictions for this position. Remember, the most
restrictive rules prevail at approval time, so even though the Buyer
Master Account Range Include rule allows for a $50,000 Amount Limit,
the Junior Buyer Document Total rule with a $25,000 Amount Limit
controls the approval ceiling.
MRO Buyers should be able to approve any document type for up to $10,000 of MRO
item categories. Set up the approval assignments as follows:
Control Function
Approval Group
Start Date
Blanket Purchase Agreement
Buyer Master
dd-MON-yy
Blanket Purchase Agreement
MRO Buyer
dd-MON-yy
Blanket Release
Buyer Master
dd-MON-yy
Blanket Release
MRO Buyer
dd-MON-yy
Contract Purchase Agreement
Buyer Master
dd-MON-yy
Approval, Security, and Control 2-17
Control Function
Approval Group
Start Date
Contract Purchase Agreement
MRO Buyer
dd-MON-yy
Internal Requisition
Buyer Master
dd-MON-yy
Internal Requisition
MRO Buyer
dd-MON-yy
Planned Purchase Order
Buyer Master
dd-MON-yy
Planned Purchase Order
MRO Buyer
dd-MON-yy
Purchase Requisition
Buyer Master
dd-MON-yy
Purchase Requisition
MRO Buyer
dd-MON-yy
Scheduled Release
Buyer Master
dd-MON-yy
Scheduled Release
MRO Buyer
dd-MON-yy
Standard Purchase Order
Buyer Master
dd-MON-yy
Standard Purchase Order
MRO Buyer
dd-MON-yy
Related Topics
Defining Approval Groups, page 1-20
Defining Approval Assignments, page 1-23
Approval Authorization Rules, page 2-12
Defining Approval Authorization Rules, page 2-13
Assigning Employees
To assign employee to jobs or positions:
1.
Use the Enter Person window to assign employees to jobs or positions. If you are
not using position approval hierarchies for document routing, you must provide
the employee's supervisor. See: Enter Person, Oracle HRMS Enterprise and Workforce
Management Guide.
You can assign an employee to only one job or position.
2-18 Oracle Purchasing User's Guide
Important: If Human Resources is installed, you must maintain
employee information using the People window for Human
Resources. See: Entering a New Person, Oracle HRMS Enterprise and
Workforce Management Guide.
2.
Before you can reference your position hierarchies in Purchasing, you must run the
Fill Employee Hierarchy process. This process creates an employee-populated
representation of your approvals hierarchy and should be run whenever you make
a structural or personnel change to your hierarchies or assignments. You can set up
this process to run automatically at predefined intervals. See: Fill Employee
Hierarchy Process, page 12-6.
The process creates an error log which lists all positions to which no employee is
assigned, but having such positions is a benign error that does not hamper system
operation.
The Document Approval Process
Approve Document Window
Purchasing lets you approve requisitions, standard and planned purchase orders,
blanket and contract purchase agreements, and releases using a common process. When
you complete your documents and are ready to initiate the approval process, select the
Approve button in the document entry window to open the Approve Document
window.
In the Approve Document window, choosing Submit for Approval (and then choosing
OK) approves the document if Owner Can Approve is enabled for the specific
document type in the Document Types window and you have the authority to approve
the document. See: Defining Document Types, page 1-66. If the document requires
someone else's approval, choosing Submit for Approval (and then choosing OK)
automatically submits the document to that person (or routes it to multiple approvers)
for approval, based on your approval hierarchy setup. See: Setting Up Document
Approval and Security, page 2-1.
Purchasing offers the following document approval actions in the Approve Document
window: Reserve or Unreserve (if using encumbrance / budgetary control), Submit for
Approval, and Forward. You can also change the approval hierarchy from within the
Approve Document window if Allow Change to Approval Hierarchy is selected for the
document type in the Document Types window. You can also specify a Forward To
person if you want the document to be approved by someone outside the approval
hierarchy.
Purchasing offers several methods for supplier notification. You can select the Print
option, and the document will automatically be printed once it is approved. In addition,
Approval, Security, and Control 2-19
certain documents can be transmitted electronically by facsimile, e-mail, electronic data
interchange (EDI), or extensibile markup language (XML).
When submitting a blanket purchase agreement for approval, the Approve Document
window can optionally provide the ability to automatically create or update supplier
sourcing business rules. You may also initiate retroactive pricing updates on related
documents.
When you select the Approve button in a document entry window, Purchasing
performs submission checks to verify that the document is complete and in an
appropriate state for the action you chose. Status checks are performed when you take
an approval action. See: Document Submission Checks, page 2-22. See: Document
Status Checks, page 2-21.
Notifications Web Page
You can also approve documents through the Notification Details Web page, accessible
through the Notifications Summary menu in Purchasing. The Notifications Summary
page lists all the documents awaiting your approval, so that you can manage your
pending approval queue and take approval actions. After opening a notification, you
can drill down to the document itself, and review it and its action history. You can also
modify the document if Approver Can Modify is enabled for the document type. See:
Defining Document Types, page 1-66. (After you modify a document, you need to
return to the notification to take an approval action.)
You can also view and respond to notifications through e-mail. Oracle Applications
uses Oracle Workflow technology to route notifications through e-mail. This way, an
approver who has easier access to e-mail than to the Purchasing application can view
notifications and take approval actions.
See: To View Notifications from the Worklist, Oracle Workflow Guide.
See: Reviewing Notifications via Electronic Mail, Oracle Workflow Guide.
Approval Workflow
Purchasing uses Oracle Workflow technology to handle the entire approval process.
When you take an approval action in the Approve Document window or the
notification, or through the Web or e-mail, you are "submitting" the approval action to
Workflow. Workflow works in the background, using the approval controls and
hierarchies you've defined to route documents for approval. Because Workflow handles
your approval process in the background, you can use Oracle Workflow Builder's easy
interface to modify your approval process. For more information about the approval
workflows in Purchasing, see: Purchase Order Approval Workflow, page E-89 and
Requisition Approval Workflow, page E-50.
Related Topics
Submitting a Document for Approval, page 2-32
2-20 Oracle Purchasing User's Guide
Viewing and Responding to Notifications, page 2-29
Approved Documents and Supply
A Pre-Approved document does not show up as supply. A Pre-Approved document is
one that meets the following conditions:
•
A person with the final authority to approve the document approves it, but then
forwards it to someone else for additional approval, thus changing its status to
Pre-Approved.
•
Your organization uses encumbrance (reserves funds for documents), and the
document is authorized for approval but funds have not yet been reserved for it.
Even if someone with sufficient approval authority approves the document, its
status may still be Pre-Approved if funds were not able to be reserved at the time of
approval. Once funds are reserved for the approved document, the document
changes its status to Approved.
A Pre-Approved document does not show up as supply until its status changes to
Approved.
When you make a change to an approved document that changes its status to Requires
Reapproval, that change (for example, to quantity) does not show up as supply until the
document has been approved again.
Approved requisition lines that have a line type based on rate or fixed price do not
show up as supply.
Document Status Checks
Purchasing performs a status check on all documents whenever you perform or attempt
an approval action. This check verifies that the document is in a valid state to perform
the selected approval action. If your document fails the status check, Purchasing
provides an error message in the window in which you are working.
The following matrix describes the valid actions for each document state. Generally,
lists of values in the document entry and approval windows restrict the list of available
approval actions based on document status, so you should rarely encounter status
check failures.
Document Approval Status: Valid Action Rules
Current
Document
Status
Incomplete
Approve
X
Reserve
X
Unreserve
X
Forward
X
Reject
Approval, Security, and Control 2-21
Current
Document
Status
Approve
In Process
Approved
Reserve
X
Unreserve
X
Forward
X
X
Reject
X
X
Pre-Approve
d
X
X
X
X
X
Rejected
X
X
X
X
Returned
X
X
X
X
Requires
Reapproval
X
X
X
X
Hold
Frozen
Cancelled
Reserved
X
Not Reserved
X
Open
Closed
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Document Submission Checks
Purchasing performs a submission check on all documents that successfully complete a
status check whenever you perform or attempt an approval action.
The submission check verifies that all mandatory fields have been entered and that
various quantities, amounts, and dates are within prescribed ranges or limits. If your
document fails any of the submission check rules, Purchasing automatically brings you
to the Approval Errors window where you can review the cause(s) of failure. You can
then return to the document entry window to make required corrections.
The following matrix describes the submission checks that are performed for each
2-22 Oracle Purchasing User's Guide
document type.
Submission Check Rules
HEADER
Standard
Planned
Blanket
Contract
Release
Requisiti
on
Document must
have a supplier
X
X
X
X
Document must
have a supplier site
X
X
X
X
Supplier must not be
on hold
X
X
X
X
Supplier must be
included in current
Approved Supplier
List entries for items
requiring an
approved supplier
X
X
X
Document must
have a currency
X
X
X
X
Foreign currency
must have a rate
X
X
X
X
Foreign currency
must have a rate
type
X
X
X
X
Foreign currency
must have a rate
date if rate type is
not User
X
X
X
X
Document must
have a ship-to
location
X
X
X
X
Document must
have a bill-to
location
X
X
X
X
X
Approval, Security, and Control 2-23
HEADER
Standard
Planned
Amount limit must
be greater than or
equal to Amount
Agreed
Amount limit must
be greater than or
equal to Minimum
Release Amount
Amount limit must
be greater than or
equal to the total
amount already
released
Amount limit must
be greater than or
equal to the
standard purchase
order line total
referencing this
contract
Related document
cannot be on hold
X
Release date must
fall within related
document effectivity
dates
X
Related purchase
agreement cannot be
on hold
X
X
Related purchase
agreement must be
approved
X
X
2-24 Oracle Purchasing User's Guide
Blanket
Contract
Release
Requisiti
on
X
X
X
X
X
X
X
X
HEADER
Standard
Planned
Blanket
Contract
Related purchase
agreement must not
be expired (if release
was never
approved)
X
X
Related document
supplier cannot be
on hold
X
X
Current release total
must be greater than
or equal to header
minimum release
amount specified on
related agreement
X
X
Current release total
plus all approved
release totals must
be greater than or
equal to the related
document amount
limit
X
X
Oracle Procurement
Contracts: No
contract terms
validation errors
LINE
X
Standard
Each document
must have at least
one line
X
X
Line quantity must
equal the sum of its
shipment quantities
X
X
Blanket
X
Requisiti
on
Contract
Release
Requisiti
on
X
Planned
Release
X
X
Approval, Security, and Control 2-25
LINE
Standard
Planned
Blanket
Release
Requisiti
on
Line price limit must
be equal to or
greater than the unit
price if price
override is allowed
X
X
If a line references a
contract, the contract
must be approved
(and not on hold)
X
X
If a line references a
contract, the
supplier on the
contract must be the
supplier on the PO
header
X
X
If a line on an
incomplete purchase
order references a
contract, the line
must have been
created within the
contract's effectivity
dates
X
PO line total related
to a contract plus
existing approved
lines relating to the
same contract
cannot exceed
contract amount
limit
X
Requisition line
quantity must equal
the sum of its
distribution
quantities
2-26 Oracle Purchasing User's Guide
X
Contract
X
LINE
Standard
Line may not use
ATO or CTO items
SHIPMENT
Planned
X
Standard
X
Planned
Blanket
Contract
Release
Requisiti
on
Blanket
Contract
Release
Requisiti
on
X
X
Each PO line must
have at least one
shipment
X
X
Shipment quantity
must equal the sum
of its distribution
quantities
X
X
X
Each release must
have at least one
shipment
X
Current shipment
total must be greater
than or equal to line
minimum release
amount specified on
related document
X
Price must be within
specified price
tolerance if Enforce
Price Tolerance is
Yes and the release
was AutoCreated
from a requisition
X
X
Line may not use
ATO or CTO items
X
X
X
Approval, Security, and Control 2-27
SHIPMENT
Standard
For an unreserve
action, shipment
must not be
overbilled or
overdeliverd
X
DISTRIBUTION
Standard
Each shipment must
have at least one
distribution
Planned
Blanket
Contract
Planned
Blanket
Contract
X
X
Release
X
Release
X
Requisiti
on
Requisiti
on
Each requisition line
must have at least
one distribution
X
An internally
sourced requisition
line must have only
one distribution
X
Foreign currency
distributions must
have a rate
X
X
X
X
Foreign currency
distributions must
have a rate type
X
X
X
X
Foreign currency
distributions must
have a rate date if
rate type is not User
X
X
X
X
If using
encumbrance, the
GL date must be in
an open period
X
X
X
X
2-28 Oracle Purchasing User's Guide
X
Viewing and Responding to Approval Notifications
Use the Notification Details Web page, accessible through the Notifications Summary
menu in Purchasing, to manage your pending approval queue and take approval
actions. After opening a notification, you can also submit a document for approval from
the notification if you didn't yet do it through the Approve Document window.
Purchasing offers the following document approval actions in the notification:
Approve, Approve and Forward, Forward, and Reject. You can also reassign a
notification to somebody else.
The approval amount noted in the notification includes nonrecoverable tax if you use
tax and recovery rates. See: Tax Information in Purchasing, page 4-115.
The Notifications Web page requires Oracle Workflow to be set up. See: Setting Up
Oracle Workflow, Oracle Workflow Guide.
Reassign and Forward
A Reassign action is not recorded in the Action History
window, but a Forward action is. See: Viewing Action
History, page 10-1. To reassign a notification but still
record you as the approver, choose Reassign, and then
choose Transfer. To forward the notification so that the
new approver is recorded in the action history instead of
you, open the notification and select the Forward action.
(Do not use the Reassign/Transfer option.)
Ignore
Some reminder notifications include a response of Ignore.
Ignore means that you are ignoring the notification for
now. Purchasing will not display that notification again
until the concurrent program process Send Notifications
for Purchasing Documents runs. (See: Send Notifications
for Purchasing Documents, page 12-34.)
Close Button
When you click Close, Purchasing considers the
notification closed. If you want to see the notification again,
choose Search and select a status of All or Closed.
Opening a Document
From a notification that you have opened, you can also
drill down to the document and modify it if Approver Can
Modify is enabled for the document type. See: Defining
Document Types, page 1-66. Depending on the function
security assigned to your responsibility, you have varying
levels of access to information. A responsibility defines an
application user's current privileges while working with
Oracle Applications.
Important: After you modify a document
Approval, Security, and Control 2-29
opened through the notification, you must
return to the notification and choose
Approve there, not in the document itself,
so that Purchasing can record your
approval action and continue with or
complete the approval process.
Purchasing Notifications
In the Notifications Summary list, notifications for the following Purchasing documents
appear. The Send Notifications for Purchasing Documents process must be running for
some of these notifications to be sent:
•
Purchase orders and requisitions that require approval action.
•
Requisitions or purchase orders that are incomplete.
•
Purchase orders and releases that require acceptance. (You indicate on your
standard purchase orders, purchase agreements, and releases whether you require
your suppliers to accept your orders by a specific date by selecting Acceptance
Required in the Terms and Conditions window.) For purchase orders and releases
that have not been entered as accepted in the Acceptances window, Purchasing
notifies you that acceptance is required. If the Acceptance Require By date indicates
that the acceptance is overdue, Purchasing sends a notification that acceptance is
past due.
•
RFQs and quotations with a Status of In Process. Purchasing sends a notification
that the document requires completion.
•
RFQs for which the Status is Active and the current date is between the Due Date
and the Close Date on the RFQ. Purchasing sends a notification that the RFQ is
approaching expiration.
•
Quotations for which the Status is Active and the current date is between the
Effectivity end date on the Quotation and the Quote Warning Delay end date in the
Default region of the Purchasing Options window. Purchasing sends a notification
that the quotation is approaching expiration.
•
Blanket purchase agreements or catalog quotations sent by your supplier through
the Purchasing Documents Open Interface when price increases on those
documents exceed a price update tolerance that you define. You receive a
notification for each affected document. See: Receiving Price/Sales Catalog
Information Electronically, page 5-18.
•
Reschedule notifications from Master Scheduling/MRP. Master Scheduling/MRP
2-30 Oracle Purchasing User's Guide
can automatically reschedule standard purchase orders and blanket and planned
releases by changing the Need By date on the document if you respond to the
reschedule notification with your approval. See: Summary of Exception Process 2,
Oracle Master Scheduling/MRP and Oracle Supply Chain Planning User's Guide.
•
Debit memos that failed to be created when you entered a Return to Supplier
transaction, if automatic debit memo creation is enabled in both the Supplier Sites
and the Returns windows. The buyer is notified. See: Debit Memos, page 9-14.
•
If Oracle Services Procurement is implemented, you can also receive the Amount
Billed Exceeded Threshold and the Contractor Assignment Completion
notifications.
For notifications about purchase order acceptances, RFQ expiration, and quotation
expiration, you can choose a response of Close. The closed notification won't reappear
unless you change the expiration date on the document.
If you receive a notification titled Document Manager Failed:
Open the notification and read the detailed message. You or your system administrator
may need to reactivate the PO Document Approval Manager. Once the PO Document
Approval Manager is reactivated, respond to the notification by choosing Retry.
Important: After the PO Document Approval Manager is reactivated,
you must respond to the notification with Retry to restart the approval
process where it left off.
If you receive a notification titled Unable to Reserve Document:
You have several options:
•
Reserve the document again if, for example, more funds have been allocated.
Important: To reserve funds for the document, first open the
document from the notification. Choose the Approve button in the
document, and then check Reserve and OK. Then respond with
Retry in the notification.
•
Send the document back to its preparer for modification; the preparer can then, for
example, reduce the quantity on the document and submit it again for approval.
•
Forward the document to somebody else with authority to reserve the funds.
If you see Resubmit Requisition, Update Requisition, and Requisition Detail icons in
a notification:
These icons enable you to resubmit, update, or view requisitions only if iProcurement is
installed.
Approval, Security, and Control 2-31
Additional Information
For more detailed instructions on how to use the Notifications Summary Web page,
including the Worklist and Find Notifications pages accessible in the Workflow menu
in Purchasing, see:To View Notifications from the Worklist, Oracle Workflow Guide, and
To Find Notifications, Oracle Workflow Guide.
You can also view and respond to notifications through e-mail. Oracle Applications
uses Oracle Workflow technology to route notifications through e-mail. This way, an
approver who has easier access to e-mail than to the Purchasing application can view
notifications and take approval actions. See: Reviewing Notifications via Electronic
Mail, Oracle Workflow Guide.
Related Topics
Overview of Function Security, Oracle Applications System Administrator's Guide
Function Security for Purchasing, page D-1
Send Notifications for Purchasing Documents, page 12-34
Submitting a Document for Approval
Use the Approve Document window to take approval actions on documents that you
create or modify. (You can also use this window to make changes to encumbered
documents. See: Changing Encumbered Documents, page 4-112.)
To take approval actions:
Navigate to the Approve Document window by selecting the Approve button in a
document entry window.
2-32 Oracle Purchasing User's Guide
1.
If you are using encumbrance/budgetary control, Reserve and Unreserve options
are available.
Reserve - You can reserve funds for the document only if you are using
encumbrance/budgetary control. Requisition preparers can choose this option only
if Reserve at Completion in the Financials Options window is enabled and the
document is currently unreserved. See: Defining Financials Options, Oracle Payables
User's Guide. When you select Reserve (and then OK), Purchasing reserves the
funds now. Purchasing also automatically approves the document if the document
has been preapproved, you're the appropriate approver, and no more approvals are
required. If you get a message that you cannot reserve the funds, forward the
document to an approver who has the authority to reserve them. If you don't select
Reserve, but just select Submit for Approval (and then OK), Purchasing reserves
funds later, when the approver with the authority to reserve the funds approves the
document.
Unreserve - You can unreserve funds for the document only if you are using
encumbrance/budgetary control and funds are currently reserved for that
document.
Unreserve Date - If you selected Unreserve, enter an Unreserve Date that falls within
an open reserve period.
Use GL Override - Use this selection to force the reservation of funds for the
document. It defaults from the profile PO: Override Funds Reservation. See: Profile
Approval, Security, and Control 2-33
Options in Purchasing, page C-1.
Use Document GL Date to Unreserve - This selection uses the document's distribution
GL dates for the funds reversal instead of the unreserve date. It defaults from the
profile PO: Use Document GL Date to Unreserve. See: Profile Options in
Purchasing, page C-1.
Accounting Date - If dual budgetary control is enabled, then the Accounting Date for
this document must be entered.
2.
Select Submit for Approval.
3.
Select Forward only if you want to forward the document to someone other than
the next approver in the default Approval Path.
If you select Forward, you must enter a Forward To person. If you don't select
Forward, Purchasing will automatically route the document to the appropriate
person in the Approval Path, if you're not the appropriate approver.
If the Forward To person is higher up in the default (or selected) Approval Path, but
still does not have enough approval authority, Purchasing will continue the
approval process with the next person in that Approval Path. If the Forward To
person is not in the default (or selected) Approval Path, and also does not have
enough approval authority, you will receive an Approver Not Found notification.
4.
If Allow Change to Approval Hierarchy is selected for the document type, you can
select a new Approval Path. See: Defining Document Types, page 1-66.
5.
Enter notes in the Note field to record information about your approval action or
provide instructions for the next approver if your document requires additional
authorization. See also: Attaching Notes to Purchasing Documents, page 1-32.
6.
Enter your comments regarding recent changes to this document in the Change
Summary field. If you are using PDF output for purchase orders, these are
displayed on the cover page. See: Purchase Orders in PDF Format, page 1-77.
7.
If appropriate for this document, select a supplier notification method from the
Transmission Methods box. Refer to the discussion of Document Transmission
Methods below.
8.
If you are approving a blanket purchase agreement and your organization allows
sourcing updates or retroactive pricing from this window open the Additional
Options tab. Refer to To enter Additional Options, page 2-35 below.
9.
Choose OK.
The document is submitted to the approval process, which routes the document to
the appropriate approvers based on the approval hierarchies and controls you've
defined. If Owner Can Approve is enabled for the specific document type in the
2-34 Oracle Purchasing User's Guide
Document Types window and you have the authority to approve the document,
then choosing OK approves the document.
To cancel your approval action:
1.
Choose the Cancel button to cancel your approval action and return to your
document entry window.
To change the Forward From person:
1.
For requisitions only, if you have selected Forward as the action and if Allow
change to Forward-From is enabled for the document type in the Document Types
window, you can change the Forward From person to the original preparer or to
any requestor on a line of the requisition. See: Defining Document Types, page 1-66.
To change the Forward To person:
1.
If you have selected Forward as the action and if Allow change to Forward-To is
enabled for the document type in the Document Types window, you can change the
Forward To person. See: Defining Document Types, page 1-66.
The Forward To value is a default from the employee/supervisor relationship or
from the approval hierarchy, depending on whether you are using approval
hierarchies.
To enter Additional Options :
From the Additional Options tab of the Approve Document window you can
automatically create or update sourcing rules, sourcing rule assignments, and approved
supplier list entries during approval submission of a blanket purchase agreement.
Important: The PO: Allow Auto-generate Sourcing Rules profile must
be set to either Create Only or Create and Update for the create or
update options to be visible in the Document Approval window. See:
Profile Options in Purchasing, page C-1.
Important: In addition to the profile above, your document archival
method must be set to archive on Approval. If it is set to archive on
Transmission the sourcing update checkboxes will not appear. See:
Defining Document Types, page 1-66.
1.
Select the Enable Automatic Sourcing checkbox and then choose a Release
Generation Method to create new supplier sourcing rules, rule assignments, and
approved supplier list entries.
Approval, Security, and Control 2-35
2.
Select the Update Existing Sourcing Rules and Assignments to extend an existing
sourcing rule effectivity date or to add a new supplier and supplier site for a
current sourcing rule effectivity date. The sourcing rules will not be updated if the
item is multi-sourced (rule has multiple suppliers) or if the rules contains multiple
items. This action also updates an existing approved supplier list (ASL) entry with
the purchase agreement information as long as the agreement is not already listed
in the ASL.
See: Approved Supplier Lists, page 5-35.
3.
Select the Apply Price Update to Existing POs and Releases to have existing
standard purchase orders (sourced to global agreements) and blanket agreement
releases updated with the pricing from the blanket agreement that you are
submitting for approval.
4.
Once you have selected Apply Price Update to Existing POs and Releases you may
also select Communicate Price Updates. This selection will enable communication
of purchase orders and releases that are impacted by the new pricing to the
supplier. Otherwise only this purchase agreement is communicated to the supplier.
Document Transmission Methods:
Although your organization may prefer not to, you can request to prepare your
purchase order for transmission to the supplier from the Approval window. You have a
choice of several different methods by which the approved document can be
transmitted to the supplier. Oracle Purchasing must be configured to support all of
these methods. See: Communicating Purchase Orders to Suppliers, page 4-6.
Note that purchase orders can be transmitted using the traditional printed text method
or in a PDF (Portable Document Format) file depending on your configuration. See:
Purchase Order Communication to Suppliers, page 1-74.
To print the document:
1.
Select Print.
The document will automatically print once it is approved.
A purchase order will not print if the supplier site on the purchase order is already
set up to receive purchase orders through Electronic Data Interchange (EDI) or
XML delivery.
To send a facsimile of the purchase order:
1.
Select Fax and enter a Fax Number. RightFax, or any facsimile software that is
compatible with the RightFax Fax Command Language (FCL), must be installed to
use this functionality.
If the Supplier Notification Method in the supplier site window (General tab) is set
to Fax and you have entered a fax number for that supplier site then the number
2-36 Oracle Purchasing User's Guide
will default in. This is a default and you can change it. Once approved, the
document will be faxed to the supplier by the purchase order approval workflow.
See: Supplier and Supplier Sites Window Reference, Oracle Payables User's Guide
Selecting Fax and entering a Fax Number automatically sends a facsimile of the
document once it is approved.
Selecting Fax without entering a Fax Number sends the document to your facsimile
server once it is approved. Depending on your RightFax setup, you can choose
where or when to send the documents that are stored on your facsimile server.
If the supplier is already set up to receive purchase orders through Electronic Data
Interchange (EDI) or XML delivery, a facsimile of the purchase order will not be
sent.
To send an e-mail of the purchase order:
1.
Select E-mail and enter an e-mail address to send this standard purchase order,
blanket agreement, or blanket release by way of e-mail. Selecting E-mail and
entering an e-mail address automatically sends the purchasing document by way of
e-mail, once it is approved.
If the Supplier Notification Method in the Supplier Site window (General tab) is set
to E-mail and you have entered an e-mail address for that supplier site then the
address will default into the Document Approval window. Once approved, the
document will be e-mailed to the supplier by the purchase order approval
workflow. The e-mail will be sent in the language indicated for the supplier site.
See: Supplier and Supplier Sites Window Reference, Oracle Payables User's Guide
Note that setting your supplier site notification method as described above simply
provides a default on this form. The buyer is free to change or override these
defaults.
If the supplier is already set up to receive purchase orders through Electronic Data
Interchange (EDI) or XML delivery, an e-mail of the purchase order will not be sent.
Related Topics
Defining Document Types, page 1-66
The Document Approval Process, page 2-19
Viewing and Responding to Notifications, page 2-29
Setting Up Document Approval and Security, page 2-1
Purchase Order Approval Workflow, page E-89
Requisition Approval Workflow, page E-50
Approval, Security, and Control 2-37
Offline Approvers
An offline approver is someone who does not log on to Oracle Applications, but uses
someone else to approve on his or her behalf.
All approvers, including offline approvers, need to have a logon user name. Even if the
approver is set up as an employee in the approval hierarchy, Purchasing cannot
continue with approval without that employee's also having a logon user name.
If in the Approve Document window you forward to an approver who does not have a
logon user name, Purchasing alerts you right away. If an approver without a logon user
name is already included in the approval hierarchy, the approval workflow will fail at
that approver. (The document will remain In Process.)
To include the offline approver in document approvals, you need to:
•
Assign the offline approver a logon user name.
•
Use the notification handling feature to forward the offline approver's documents to
a proxy approver-someone who can log on to Oracle Applications and approve the
document on the offline approver's behalf.
You need to do both of these steps. The approval process needs to know the offline
approver's logon user name before it can route that person's documents to the proxy
approver. Both of these steps are described below.
When you designate a proxy approver to approve on the offline approver's behalf, the
offline approver, not the proxy approver, shows up as having approved the document
in the Action History window.
To designate a proxy approver:
1.
Assign the offline approver a logon user name if the approver does not already
have one.
For instructions, see: Users Window, Oracle Applications System Administrator's
Guide.
2.
In the Purchasing or System Administrator responsibility, in the Workflow menu,
navigate to Notification Rules, which opens a Web page.
In the System Administrator responsibility, the Workflow Administrator >
Notification Rules menu enables you to reassign anyone's notifications. In the
Purchasing responsibility, the Workflow User > Notification Rules menu enables
you to reassign only your notifications.
3.
Designate a proxy approver for the offline approver by following the instructions in
Defining Rules for Automatic Notification Handling, Oracle Workflow Guide.
The instructions for defining these rules refer to a role. For Purchasing, role means
2-38 Oracle Purchasing User's Guide
the user for whom you are designating a proxy approver.
When you reach the Find Notification Routing Rules Web page, enter the user name
of the offline approver.
If you want to designate the proxy approver for both requisitions and purchase
orders, when you reach the step about selecting the workflow (item type) for which
you need to create the proxy approver, select the PO Requisition Approval
workflow. Then repeat the steps for the PO Approval workflow, for purchase
orders. (Recall that different document types are tied to their corresponding
workflows-usually to either the PO Requisition Approval workflow or the PO
Approval workflow-in the Document Types window during Purchasing setup. For
example, the PO Approval workflow handles all purchase order types, unless
you've set up the Document Types window to do differently.)
Once you have selected the workflow, you will be presented with a list of the
notifications within the workflow. For offline approvers, you may want to select All
notifications.
When you reach the step that asks you to enter a comment, it is advisable to enter a
comment-for example, "This document requires your approval on Joan's behalf."
This helps the proxy approver know whether it is just another document in his or
her queue, or a document that needs to be approved for someone else.
Mass Forwarding Documents
Use the Forward Documents window to forward all or selected documents awaiting
approval from one approver to a new approver. This lets you keep your documents
moving when the original approver of a document is unavailable.
To mass forward documents:
1.
Select Forward Documents from the menu. Purchasing displays the Find
Documents window, where you must identify an approver or document number
and operating unit.. In this window enter or select the name of the original
approver, or enter the document number, and select OK to display the Forward
Documents window.
Approval, Security, and Control 2-39
For each document available for forwarding, Purchasing displays the Forward
Date, document Type, document Number, Currency, Amount, Status, From person,
Note, document Description, document Owner, and Creation Date.
2.
Select the documents you want to forward.
3.
Enter the New Approver to whom you want to forward the selected documents.
4.
Save your work.
To select different search criteria:
1.
Click on the Find Documents button to display the Find Documents window. Here
you can select a different approver or document number to be displayed in the
Forward Documents window.
To view action history:
1.
Select View Action History on the Tools menu. See: Viewing Action History, page
10-1.
Document Control Overview
Purchasing allows you to control the status of your requisitions, planned and standard
purchase orders, blanket and contract purchase agreements, and releases during the
document life cycle.
2-40 Oracle Purchasing User's Guide
Purchasing provides you with the features you need to satisfy the following basic
needs. You should be able to:
•
Delete unapproved documents or unapproved lines, shipments, and distributions
that you add to previously approved documents
•
Terminate existing commitments to buy from suppliers by fully or partially
cancelling your documents
•
Indicate that no further internal activity is expected or allowed on completed orders
by final closing them
•
Freeze or unfreeze documents to control whether modifications are allowed
•
Place documents on hold to prevent printing, receiving, invoicing, and approval
until the hold is removed
•
Firm purchase orders to prevent Oracle Master Scheduling/MRP and Supply Chain
Planning from suggesting reschedules in, cancellations, or new planned purchase
orders within the time fence created by your firm date
•
Control how Purchasing automatically closes documents for receiving and
invoicing activity
Document Security determines the documents on which you can perform control
actions. See: Document Security and Access, page 2-7.
If the document is a global agreement, the Manage Global Agreements function security
determines if you can perform control actions. See: Function Security for Purchasing,
page D-1
Related Topics
Controlling Documents, page 2-57
Document Control Options
Delete
Before documents are approved, you can delete them or their components from the
document entry window.
Important: If you are using automatic numbering, you cannot reuse
document numbers that you delete with this option.
You can also use the appropriate entry window to delete unapproved lines, shipments,
and distributions that you added to previously approved documents.
Approval, Security, and Control 2-41
If you use online requisitions, Purchasing returns all requisitions associated with your
delete action to the requisition pool. You can reassign these unfilled requisitions to
other purchase orders or releases using the AutoCreate Documents window. See:
Finding Requisition Lines for AutoCreate, page 6-9.
Cancel
Purchasing lets you terminate an existing commitment to buy from a supplier by
cancelling document headers, lines, shipments, or releases.
When you cancel a purchase order entity, you are unable to receive or pay for cancelled
items and services, however, you can pay for all previously received orders. You also
cannot modify a cancelled entity or its components. For example, if you cancel a line
you cannot modify the associated shipments and distributions. If you cancel a
document header, you cannot access the document in the corresponding entry form.
You can approve documents that include cancelled entities (lines and shipments), but
you cannot approve documents that are cancelled at the header level. You can also
communicate cancelled documents to the supplier. Purchasing marks these documents
with a cancellation notice to highlight this action to the supplier. Finally, you can Purge
documents that were cancelled at the header level before the Last Activity Date that you
specify when you submit Purge. See: Printed Purchase Order Overview, page 8-3. See:
About Purging Records, Oracle Payables User's Guide.
If you are using encumbrance and budgetary control, Purchasing automatically creates
negative debit encumbrance journal entries in your general ledger system to reverse the
encumbrance that corresponds to the document header, lines, or shipments you are
cancelling. The amount of the encumbrance is the lesser of the unbilled or undelivered
amount on the shipment being cancelled. If the amount delivered is more than the
billed at the time the shipment is cancelled, the encumbrance is left on the purchase
order, awaiting invoicing of the delivered but not yet billed amount.
If you are using online requisitions with quantity or amount based line types,
Purchasing returns unfilled requisitions associated with cancelled purchase order
entities to the requisition pool based on the Cancel Requisitions control you specify in
the Purchasing Options window. See: Defining Control Options, page 1-33. If you are
using online requisitions with rate or fixed price based line types the unfilled
requisitions are cancelled.
Example
You order 100 items from a supplier, and after receiving 30 of these items, you realize
that you no longer have a need for the outstanding balance. Cancel the remaining 70
items, print the purchase order, and send it to the supplier to indicate contractually that
you do not want to take delivery of these items.
You should cancel documents or their components only if you are absolutely certain
that all desired activities have been completed; you cannot undo a cancel action.
You can cancel an entire requisition or particular requisition lines. However, you cannot
cancel a requisition line a buyer placed on a purchase order, modified during
AutoCreate, or placed on a sales order.
2-42 Oracle Purchasing User's Guide
If a buyer places a requisition line on a purchase order, you cannot cancel the
requisition line or the corresponding requisition header until you cancel or final close
all purchase order lines associated with the requisition.
Similarly, you cannot cancel a requisition if any of its lines are on an active internal sales
order. However, if the related internal sales order is cancelled, you should cancel the
originating requisition line.
When you cancel a requisition related to a cancelled sales order, the quantity cancelled
on the requisition line is the same as the quantity cancelled on the sales order line, not
the remainder of the requisition.
You cannot cancel a purchase order if there are batch receiving transactions in the
receiving interface awaiting processing against the purchase order.
If you partially received a shipment corresponding to multiple distributions,
Purchasing cannot always cancel the shipment. To make sure Purchasing can cancel a
shipment, enter the delivery transactions for the receipts you entered against that
shipment. You can use express delivery to facilitate this process.
Use the Control Document window to cancel a single document or its entities. Use the
Define MassCancel and Run MassCancel windows to cancel many documents by
accounting distribution and date range. See: Controlling Documents, page 2-57. See:
Defining MassCancel, page 2-61. See: Running MassCancel, page 2-67.
Final Close
Prevent modifications to or actions against completed documents, lines, and shipments
by final closing them. Final-closed documents are not accessible in the corresponding
entry forms, and you cannot perform the following actions against final-closed entities:
receive, transfer, inspect, deliver, correct receipt quantities, invoice, return to supplier,
or return to receiving. You can approve documents that include final-closed entities, but
you cannot approve documents that are final closed at the header level. You can print
final-closed documents; this is an internal control action that has no bearing on your
contractual relationship with the supplier. Finally, you can Purge documents that were
final closed at the header level before the Last Activity Date that you specify when you
submit Purge. See: About Purging Records, Oracle Payables User's Guide.
You should final close documents or their components only if you are absolutely certain
that all desired activities have been completed; you cannot undo a final-close action.
If you are using encumbrance and budgetary control, final close automatically creates
credit encumbrance journal entries in your general ledger system to reverse the
encumbrance that corresponds to the document header, lines, or shipments you are
final closing. The amount of the encumbrance depends on whether the shipment is
using online or period end accruals. For online accruals the encumbrance amount is the
undelivered amount. For period end accruals the encumbrance amount is the unbilled
amount.
If you are using encumbrance accounting you may want to finally close a cancelled
shipment for which you have encumbrance balances (from any quantity delivered but
Approval, Security, and Control 2-43
not billed at the time the shipment was cancelled, or from invoices cancelled after the
shipment was cancelled). In this case, the the final close action will remove any
encumbrance balances that were on the shipment.
If you are using online requisitions, Purchasing does not return unfilled requisitions
associated with final-closed purchase order entities to the requisition pool. You must
cancel or final close these requisitions using the Control Document window. See:
Controlling Documents, page 2-57.
Payables can also final close documents during Payables Approval for purchase order
matched invoices only, if you select Allow Final Matching in the Payables Options
window. See: Payables Options, Oracle Payables User's Guide.
You can final close an entire requisition or particular requisition lines. However, you
cannot final close a requisition line a buyer placed on a purchase order, modified
during AutoCreate, or placed on a sales order.
If a buyer places a requisition line on a purchase order, you cannot final close the
requisition line or the corresponding requisition header until you cancel or final close
all purchase order lines associated with the requisition.
Similarly, you cannot final close a requisition if any of its lines are on an active internal
sales order. If the related internal sales order is closed, you can final close the
originating requisition line.
You cannot final close a purchase order if there are batch receiving transactions in the
receiving interface awaiting processing against the purchase order.
Freeze
Freeze your purchase orders and releases to prevent changes or additions while
maintaining the ability to receive and match invoices against received shipments. You
cannot access frozen documents in the entry forms.
Use the Control Document window to freeze or unfreeze a document. See: Controlling
Documents, page 2-57.
Hold
Place documents on hold to unapprove them while preventing printing, receiving,
invoicing, and future approval until you remove the hold.
Example
After sending a purchase order to a supplier and receiving some items, you discover a
severe quality problem with one of the incoming lots. While you wait for corrective
action from the supplier, place the document on hold until the problem is resolved.
Use the Control Document window to place a document on hold, or remove a hold. See:
Controlling Documents, page 2-57.
2-44 Oracle Purchasing User's Guide
Firm
When you firm an order, Master Scheduling/MRP uses the firm date to create a time
fence within which it will not suggest new planned purchase orders, cancellations, or
reschedule-in actions. It continues to suggest reschedule-out actions for orders within
the time fence. If several shipments with different promised or need-by dates reference
the same item, Master Scheduling/MRP sets the time fence at the latest of all scheduled
dates.
You can firm orders at the document header or shipment level. If you firm at the header
level, Purchasing applies this control to every shipment on the document.
Example
When you negotiate delivery dates for an allocated commodity, the supplier warns that
you will be unable to expedite or cancel this order. Firm the order to prevent Master
Scheduling/MRP from assuming you have this flexibility in its planning logic.
Use the relevant document entry window to firm a given order. See: Entering Purchase
Order Details Information, page 4-61. See: Entering Release Headers, page 4-83.
You can also create firm time fences for specific items using the Item window. See:
Defining Items, Oracle Inventory User's Guide.
Close, Close for Receiving, Close for Invoicing
Purchasing automatically closes shipments for receiving and invoicing based on
controls that you specify in the Purchasing Options window. Once all shipments for a
given line are closed, Purchasing automatically closes the line. When all lines for a given
header are closed, Purchasing automatically closes the document.
You can specify closing controls including: Receipt Close Tolerance, Receipt Close
Point, and Invoice Close Tolerance. See: Defining Purchasing Options, page 1-32.
•
The Receipt Close Tolerance lets you specify a quantity percentage within which
Purchasing closes a partially received shipment. For example, if your Receipt Close
Tolerance is 5% and you receive 96% of an expected shipment, Purchasing
automatically closes this shipment for receiving.
•
The Receipt Close Point lets you choose which receiving action (Received,
Accepted, or Delivered) you want to use as the point when Purchasing closes a
shipment for receiving based on the Receipt Close Tolerance. For example, if you
set a Receipt Close Tolerance of 5% and choose Delivered as your Receipt Close
Point, Purchasing closes shipments for receiving when you have delivered 95% or
more of the ordered quantity.
•
The Invoice Close Tolerance lets you specify a similar quantity percentage within
which Purchasing automatically closes partially invoiced shipments for invoicing.
Purchasing does not include closed shipments in the Open Purchase Order reports, and
you can purge documents that were closed at the header level before the Last Activity
Approval, Security, and Control 2-45
Date that you specify in the Submit Purge window. See: About Purging Records, Oracle
Payables User's Guide
You can close and reopen documents and their components for invoicing and receiving
using the Control Document window. You can reopen a document at any time by
modifying it or taking another action against it. See: Controlling Documents, page 2-57.
Note: The Close for Invoicing status does not prevent you from
matching an invoice to a purchase order or to a receipt.
Purchase Order Control Matrices
The following matrices describes each of the purchase order control functions including
information on where the control is specified, what purchase order activities can occur
when a document is in a given state, the related MRP/ATP effects, related encumbrance
effects, and finally, related requisition effects.
Control Details
Document available
to purge?
Close
Close for Invoicing
Close for Receiving
Yes, if header final
closed before Last
Activity Date
No
No
Modify controlled
entity?
Yes
Yes
Yes
Action causes
revision change?
No
No
No
Print or transmit
document?
Yes
Yes
Yes
Receive against
controlled entity?
Yes
Yes
Yes
RTV against
controlled entity?
Yes
Yes
Yes
Invoice against
controlled entity?
Yes
Yes
Yes
Does document
maintain its approval
status?
Yes
Yes
Yes
2-46 Oracle Purchasing User's Guide
Control Details
Close
Close for Invoicing
Close for Receiving
AutoCreate or
Release against
document?
Yes
Yes
Yes
MRP/ATP Effect
Closed quantity no
longer available as
supply; supply is
recreated when
reopened
No effect
Closed quantity no
longer available as
supply; supply is
recreated when
reopened
Encumbrance Effect
No effect
No effect
No effect
Associated
Requisitions
No effect
No effect
No effect
Closed quantity is no
longer available for
transportation
planning
No effect
Closed quantity is no
longer available for
transportation
planning
Transportation
Integration
Control
Details
Cancel
Finally Close
Freeze
Hold
Firm
Document
available to
purge?
Yes, if header
cancelled
before Last
Activity Date
Yes, if header
final closed
before Last
Activity Date
No
No
No
Modify
controlled
entity?
Cannot
modify entity
or below
cancelled
entity
Cannot
modify entity
or below
final-closed
entity
No
Yes
Yes
Action causes
revision
change?
Yes
No
No
No
No
Print or
transmit
document?
Yes
Yes
Yes
No
Yes
Approval, Security, and Control 2-47
Control
Details
Cancel
Finally Close
Freeze
Hold
Firm
Receive
against
controlled
entity?
No
No
Yes
No
Yes
RTV against
controlled
entity?
No
No
Yes
Yes
Yes
Invoice
against
controlled
entity?
Yes
No
Yes
No
Yes
Does
document
maintain its
approval
status?
Yes, if
header, line,
or shipment
is cancelled;
but if you
cancel the
header, the
Cancelled
check box is
selected
Yes if header,
line, or
shipment is
final closed;
but if you
final close the
header, the
Closure
Status is
updated
correspondin
gly
Yes, but the
Frozen check
box is
selected
No;
documents
on hold
require
reapproval
Yes
AutoCreate
or Release
against
document?
Cannot add
req to
cancelled doc;
cannot create
release
Cannot add
req to
final-closed
doc; cannot
create release
Cannot create
release
against
frozen
purchase
order
No effect
No effect
Cancelled
quantity no
longer
available as
supply
Finally
Closed
quantity no
longer
available as
supply
No effect.
MRP can
suggest
reschedule
actions
No effect
MRP will not
reschedule in
or cancel the
order. (See
Note)
MRP/ATP
Effect
2-48 Oracle Purchasing User's Guide
Control
Details
Cancel
Finally Close
Freeze
Hold
Firm
Encumbrance
Effect
Outstanding
encumbrance
reversed as a
negative DR
(Period End:
lesser of
unbilled,
undelivered.
Accrue on
Receipt:
undelivered.)
Outstanding
encumbrance
reversed as
CR (Period
End:
unbilled.
Accrue on
Receipt:
undelivered.)
No effect
No effect
No effect
Associated
Requisitions
Determined
by
Purchasing
Options:
Never,
Always,
Optional
Not returned
to req pool;
must
manually
final close or
cancel
associated
req
No effect
No effect
No effect
Transportatio
n Integration
Cancelled
quantity is no
longer
available for
transportatio
n planning
Finally closed
quantity is no
longer
available for
transportatio
n planning
No effect
On hold
quantity is no
longer
available for
transportatio
n planning
No effect
Note: Within the time fence created by a Firm order, MRP will not
suggest new planned orders, cancellations, or reschedule-in actions; but
it will suggest reschedule-out actions.
Document Control Applicability Matrix
The Document Control Applicability matrix describes which control actions are valid
for each document type and entity.
Approval, Security, and Control 2-49
Current
Docum
ent
Type
Cancel
Close
for
Invoice
Close
for
Receipt
Planned
PO
Header
X
X
X
X
X
Planned
PO Line
X
X
X
X
X
Planned
PO
Shipme
nt
X
X
X
X
X
Standar
d PO
Header
X
X
X
X
X
Standar
d PO
Line
X
X
X
X
X
Standar
d PO
Shipme
nt
X
X
X
X
X
Blanket
Agreem
ent
Header
X
X
X
Blanket
Agreem
ent Line
X
X
X
Contrac
t
Agreem
ent
Header
X
X
X
2-50 Oracle Purchasing User's Guide
Finally
Close
Close
Freeze
Hold
Firm
X
X
X
X
X
X
X
X
X
X
X
X
X
Current
Docum
ent
Type
Cancel
Finally
Close
Close
Close
for
Invoice
Close
for
Receipt
Release
Header
X
X
X
Release
Shipme
nt
X
X
X
Requisit
ion
Header
X
X
Requisit
ion Line
X
X
Freeze
Hold
Firm
X
X
X
X
X
X
Document Control Status Check Matrix
Purchasing performs a status check on all documents when you choose a control action.
This check verifies that the document is in a valid state to perform the selected control
action. If your document fails the status check, Purchasing provides an error message in
the window in which you are working.
The following matrix describes the valid actions for each possible document state.
Generally, Purchasing restricts the list of available actions based on document status, so
you should rarely encounter problems in the status check.
Current
Docum
ent
Status
Cancel
Finally
Close
Close
Open
Close
for
Invoice
Close
for
Receipt
Freeze
Incompl
ete
X
In
Process
X
Approv
ed
X
X
X
X
X
X
Hold
X
Approval, Security, and Control 2-51
Current
Docum
ent
Status
Cancel
Finally
Close
Close
Open
Close
for
Invoice
Close
for
Receipt
Freeze
Pre-App
roved
X
X
Rejected
X
Returne
d
X
Hold
Require
s
Reappro
val
On
Hold
Frozen
X
Cancelle
d
Finally
Closed
X
X
X
X
X
X
X
Reserve
d
X
X
X
X
X
X
X
Open
X
X
X
X
X
X
X
X
X
X
X
X
X
Closed
X
X
Closed
for
Invoicin
g
X
X
X
X
Closed
for
Receivin
g
X
X
X
X
2-52 Oracle Purchasing User's Guide
X
X
Document Control Submission Check Matrix
Purchasing performs a submission check on each document for which you choose a
Cancel or Finally Close control action. The submission check verifies that the document
satisfies specific conditions for these control actions. For example, if you try to cancel a
blanket purchase agreement, the submission check verifies that all releases associated
with this agreement have been cancelled or final closed. If your document fails any of
the submission check rules, Purchasing opens the View Online Report window where
you can review the cause(s) of failure.
The following matrix describes the submission checks that Purchasing performs for
each document type.
CANCEL
Standard
Shipment
quantity
received
must be
less than
quantity
ordered
X
Shipment
quantity
billed must
be less than
quantity
ordered
X
Shipment
quantity
billed must
be less than
quantity
received if
receipt is
required.
X
Planned
Blanket
Contract
X
X
X
X
Release
Requisitio
n
Approval, Security, and Control 2-53
CANCEL
Standard
Planned
Blanket
Contract
Release
Requisitio
n
Distributio
n quantity
delivered
must be
less than or
equal to
quantity
ordered
X
X
Distributio
n quantity
billed must
be less than
or equal to
quantity
ordered
X
X
Distributio
n quantity
billed must
be less than
or equal to
quantity
received if
receipt is
required.
X
X
Delivery
quantity
must equal
receipt
quantity
for all
receipts
X
X
Cancel date
must be
within
accounting
distributio
n
effectivity
dates
X
X
2-54 Oracle Purchasing User's Guide
X
X
CANCEL
Standard
All
associated
releases
must be
cancelled
or final
closed
Planned
Blanket
X
All
accounting
flexfields
must be
valid
X
No
pending
receiving
transaction
s.
X
No
unreceived
ASNs.
X
X
Contract
Release
Requisitio
n
X
X
X
X
All lines
referencing
the
agreement
must be
cancelled
or finally
closed.
Correspon
ding sales
order line
must be
closed
X
X
X
X
Approval, Security, and Control 2-55
CANCEL
Standard
Procureme
nt Services:
Timecards
(approved,
working,
or rejected)
must NOT
exist.
FINALLY
CLOSE
X
Standard
Delivery
quantity
must equal
receipt
quantity
for all
receipts
X
Cancel date
must be
within
accounting
distributio
n
effectivity
dates
X
All
associated
releases
must be
cancelled
or final
closed
All
accounting
flexfields
must be
valid
2-56 Oracle Purchasing User's Guide
Planned
Blanket
Contract
Release
Requisitio
n
Planned
Blanket
Contract
Release
Requisitio
n
X
X
X
X
X
X
X
X
X
X
FINALLY
CLOSE
Standard
Planned
Blanket
Contract
Release
Requisitio
n
No
pending
receiving
transaction
s.
X
X
No
unreceived
ASNs.
X
X
All lines
referencing
the
agreement
must be
cancelled
or finally
closed.
Correspon
ding sales
order line
must be
closed
Procureme
nt Services:
Timecards
(approved,
working,
or rejected)
must NOT
exist.
X
X
X
X
Controlling Documents
Use the Control Documents window to control requisitions and requisition lines as well
as purchase orders, purchase order lines, releases, and shipments. For requisitions, the
only available actions are Cancel and Finally Close. Only control options appropriate
for the selected requisition or purchase order are displayed in the Actions field. The
following control actions are available in this window:
Approval, Security, and Control 2-57
•
Cancel - If you use on-line requisitions, and you cancel a purchase order you did not
receive or pay at all, Purchasing cancels the requisition lines associated with the
purchase order if the Cancel Requisitions check box is selected. If the Cancel
Requisitions check box is not selected, the requisition lines are not cancelled and are
returned to the pool of available requisitions. You can then assign these requisition
lines to new purchase orders to fulfill your requestors' needs. See: Defining Control
Options, page 1-33.
If you use on-line requisitions with quantity or amount based line types, and you
cancel a partially received purchase order line, Purchasing recreates requisition lines
for the remainder of the maximum of the billed or received quantity you have not
received. You can assign these requisition lines to a new purchase order line to
fulfill the requestor's needs. See: Autocreate Document Options, page 6-3. If you
have implemented Oracle Services Procurement and use on-line requisitions with
rate or fixed price line types, no requisition lines are recreated.
If you are using encumbrance or budgetary control, Purchasing automatically
creates negative debit entries in your general ledger system to cancel the
encumbrance that corresponds to the purchase order header, lines, or shipments
you are cancelling, using the action date you specify in Action Date. Purchasing
recreates requisition encumbrances for the requisition lines you used to create the
purchase order if the Cancel Requisitions check box is not selected. Purchasing uses
the distributions from your cancelled purchase order to recreate the encumbrance
for your requisition. See: Budgetary Control and Online Funds Checking, Oracle
General Ledger User's Guide.
After you partially or completely cancel a purchase order, you need to inform your
supplier of the cancellation. You can communicate purchase orders or releases you
partially or completely cancelled. Purchasing automatically inserts a cancellation
message on the purchase order, purchase order line, purchase order shipment, or
release you cancelled.
You can source a requisition line from a line in the Prior Purchases region of the
Supplier Item Catalog window. (A line in the Prior Purchases region corresponds to
a purchase order line.) However, Purchasing does not automatically update the
corresponding sourcing information if you cancel a blanket agreement or
agreement line with which you source requisition lines. If you cancel a blanket
agreement or agreement line, be sure to update the corresponding information in
the Requisition Templates or the Sourcing Rules window. See: Defining Requisition
Templates, page 1-45. See: Automatic Sourcing, page 5-24.
•
Close - You can close at the header, release, line, and shipment levels.
•
Close for Invoicing - You can close for invoicing at the header, release, line, and
shipment levels. Note that if you close for invoicing a purchase order header that is
currently open, Purchasing sets the status of all purchase order shipments to Closed
for Invoicing, but the purchase order lines and header remain open. This status will
not prevent you from matching an invoice to the purchase order or to the receipt.
2-58 Oracle Purchasing User's Guide
•
Close for Receiving - You can close for receiving at the header, release, line, and
shipment levels. Note that if you close for receiving a purchase order header that is
currently open, Purchasing sets the status of all purchase order shipments to Closed
for Receiving, but the purchase order lines and header remain open.
•
Finally Close - You can final close at the header, release, line, and shipment levels.
Purchasing automatically closes fully billed and received purchase orders.
However, to prevent further actions on the purchase order, you should use this
window to final close purchase orders. Finally Close prevents modifications to the
purchase order. Also, if you are using encumbrance or budgetary control, Finally
Close automatically creates credit encumbrance journal entries in your general
ledger system to reverse the encumbrance that corresponds to the purchase order
header, lines, or shipments you are closing, using the action date you specify in
Action Date. See: Budgetary Control and Online Funds Checking, Oracle General
Ledger User's Guide.
•
Freeze - You can freeze only at the header and release level. You freeze a purchase
order when you want to prevent any future modifications to the purchase order.
When you freeze a purchase order, you can still receive and pay for goods you
already ordered. If you want to prevent future receipt or matching invoices against
this purchase order, cancel or final close the purchase order instead.
If you use a Requisition template or source requisition lines from a purchase order
line, Purchasing does not automatically update the corresponding sourcing
information when you freeze a purchase order with which you source requisition
lines. If you freeze a purchase order, be sure to update the corresponding
information in the Requisition Templates or the Sourcing Rules window. See:
Defining Requisition Templates, page 1-45. See: Automatic Sourcing, page 5-24.
•
On Hold - You can place a purchase order on hold only at the header level. This
unapproves the purchase order while preventing printing, receiving, invoicing, and
future approval until you remove the hold.
•
Open - You can open at the header, line, and shipment levels.
•
Open for Invoicing - You can reopen for invoicing at the header, line, and shipment
level.
•
Open for Receiving - You can reopen for receiving at the header, line, and shipment
level.
•
Release Hold - You can release a hold only at the header level.
•
Unfreeze - You can unfreeze only at the header and release levels.
Approval, Security, and Control 2-59
To control documents:
1.
Navigate to the Control Document window by selecting Control from the Tools
menu in the Requisition Headers Summary and Requisition Lines Summary
windows. For purchase orders, you can navigate to the Control Document window
from the summary windows titled Purchase Order Headers, Purchase Order Lines,
and Purchase Order Shipments.
2.
Select the control Action.
3.
If you selected the Cancel action, you can update the Action Date.
Note: If you are using encumbrance or budgetary control, make
sure the action date you specify lies in an open period.
4.
If you are using encumbrance or budgetary control, enter the GL Date for funds
reversal related to your action.
5.
The Cancel Requisitions check box appears only when you have selected the Cancel
action for a purchase order. The operation of the check box is governed by the
Cancel Requisitions flag in the Purchasing Options window. If this flag is set to
Never, the check box does not appear. If this flag is set to Always, the check box
appears checked when you select the Cancel action, but you cannot update the
2-60 Oracle Purchasing User's Guide
check box. If this flag is set to Optional, the check box appears unchecked when you
select the Cancel action, and you can update it. If the check box is checked,
requisition lines associated with the cancelled purchase order header, line,
shipment, or release are cancelled. If the check box is unchecked, requisition lines
associated with the cancelled purchase order header, line, shipment, or release are
not cancelled and are returned to the requisition pool. See: Defining Control
Options, page 1-33.
6.
If you are using encumbrance or budgetary control, select Use Document GL Date
to Unreserve. This selection uses the document's distribution GL dates for the funds
reversal instead of the unreserve date.
7.
Optionally enter a Reason for the action.
8.
If you are cancelling a purchase order, you can enter a Note to Supplier.
9.
If you are cancelling a purchase order, you can communicate the the purchase order
to the supplier. See: Document Transmission Methods, page 2-36.
To cancel control actions:
1.
Select the Cancel button to cancel your actions and return to the previous window.
Related Topics
Document Control Options, page 2-41
MassCancel
Defining MassCancel
Use the Define Mass Cancel window to specify criteria for cancelling groups of
requisitions or purchase orders that you no longer want to honor.
You can specify a range of Accounting Flexfields for which to cancel requisitions or
purchase orders. You can use this zone to specify a range of accounts, programs,
projects, or funds, or one account, program, project, or fund for which to cancel
purchase orders or requisitions. Purchasing selects for cancellation all purchase orders
or requisitions that meet your other selection criteria and have distributions falling
completely or partially within these ranges.
You can define multiple ranges of Accounting Flexfields, each including both a low and
high value for each key segment. Purchasing excludes all values outside the specified
ranges.
When you enter the Include Low field, Purchasing displays a pop-up window that
contains a prompt for each segment you have defined for your Accounting Flexfield.
Approval, Security, and Control 2-61
You enter both the low and high ends of each range in this pop-up window. After you
finish entering each range, Purchasing displays your low segment values in
concatenated form in the Low field and displays your high segment values, similarly, in
the High field.
Note that Purchasing does not perform checking for incompatible ranges, so you must
take care to insure that your High value is actually higher than your Low value.
Otherwise, no documents will be selected for MassCancel.
After you specify your cancellation criteria, Purchasing selects all purchase orders or
requisitions meeting your cancellation criteria and automatically prints the Define
MassCancel Listing. This report lists requisitions and purchase orders that are not
cancellable, that fall partially within your cancellation criteria, and that fully meet your
cancellation criteria. You can cancel purchase orders or requisitions in the latter two
categories using the Run MassCancel window.
To define cancellation criteria
1.
Navigate to the Define MassCancel window from the menu.
2-62 Oracle Purchasing User's Guide
2.
Select the Operating Unit for this MassCancel Batch.
3.
Enter the MassCancel Batch Name. Purchasing displays this name in the Run
MassCancel window, where you can choose the batch for cancellation.
4.
Choose one of the following Options:
5.
•
Requisition - Use this option to submit MassCancel for Requisitions.
•
Purchase Order - Use this option to submit MassCancel for planned and
standard purchase orders, and blanket purchase agreements.
Select Cancel Backing Requisition Lines to indicate that you want to cancel the
backing requisition lines when you cancel a purchase order. The cursor enters this
field only when you choose the Purchase Order option in this window and then
only when the Cancel Requisitions option in the Purchasing Options window is set
to Optional. In this case, the default is to disable the check box, but you can change
it. You cannot disable this option when the Cancel Requisitions option is Always or
enable this option when the Cancel Requisitions option is Never. See: Defining
Control Options, page 1-33.
If you set the Cancel Backing Requisition Lines option to Never, when you
complete your MassCancel for purchase orders Purchasing recreates the requisition
Approval, Security, and Control 2-63
(and requisition encumbrance if you use requisition encumbrance or requisition
budgetary control) from which you created your purchase order. Therefore, you
should define and run MassCancel for all your purchase orders before you define and run
MassCancel for your requisitions.
6.
Enter the Start Date and End Date you want Purchasing to use to choose
requisitions or purchase orders for cancellation. The creation date is the date you
created your requisitions or purchase orders. Purchasing selects requisitions or
purchase orders for cancellation that have creation dates between the start date and
end date you specify here.
7.
For requisitions only, enter the Requisition Type: Internal or Purchase.
8.
Enter the Supplier Name for which you want Purchasing to choose purchase orders
for MassCancel. If you specify a supplier name, Purchasing selects for cancellation
all purchase orders for this supplier that also fit your other cancellation criteria. If
you do not specify a supplier name, Purchasing selects all purchase orders that
meet your other selection criteria. You cannot specify a supplier name if you are
cancelling requisitions.
9.
Enter the Low and High values of your MassCancel rule range. Neither value has to
be a valid Accounting Flexfield value nor does it have to be made up of valid key
segment values.
You must enter a Low and High value. If you want to cancel all documents in a
specific range or for a specific supplier, regardless of the account, enter the lowest
and highest possible account values. The lowest and highest possible values in a
range are operating system dependent. The lowest possible value is either the
number 0 or the character A. If the lowest value on your computer is the number 0,
then the highest possible value is the character Z. If the lowest value on your
computer is the character A, then the highest possible value is the number 0. You
must determine which combination is correct for your computer. If you enter the
incorrect combination of lowest to highest, Purchasing displays an error message so
you know your computer accepts the other lowest to highest range combination.
Note that ZZ is a higher value than Z. If you want to specify a single value to
include, enter the same value in both the Low and High fields.
Example
You want to cancel all purchase orders you charge to project 305. You define your
Accounting Flexfield as Fund - Account - Organization - Project. Your computer
uses 0 as the lowest value. You specify the Include Low value as 00-0000-000-305
and Include High as ZZ-ZZZZ-ZZZ-305. Note that if none of the Accounting
Flexfield segments are required, you can have a range of all null (empty) segments,
which in effect means that all accounts are included in the range.
Overview of Encumbrance Accounting, Oracle General Ledger User's Guide
Define MassCancel Listing, page 2-65
2-64 Oracle Purchasing User's Guide
Running MassCancel, page 2-67
Define MassCancel Listing
Use the Define MassCancel Listing to review purchase orders and requisitions you have
selected for cancellation using the Define MassCancel form. Purchasing prints this
report automatically after you define your purchase order or requisition cancellation
criteria in the Define MassCancel window and save your work. The report is in four
sections: Unable to Cancel Requisitions, Unable to Cancel Purchase Orders, Partially in
Range Documents, and Fully in Range Documents.
The Unable to Cancel Requisitions and Unable to Cancel Purchase Orders sections print
documents which fit your selection criteria, but which are not cancellable by
MassCancel for a reason that the report provides.
Purchasing displays one of the following reasons why you cannot cancel a requisition:
Included in PO
You have matched at least one line of your
requisition to a purchase order. Therefore, you
cannot cancel the entire requisition.
One or more POs are created based on this
REQ
You have one or more purchase orders that
have been created based on this requisition.
Therefore, you cannot cancel the requisition.
REQ is either incomplete, cancelled, or final
closed
The requisition is either incomplete, cancelled,
or final closed. Therefore you cannot cancel
the requisition.
Purchasing displays one of the following reasons why you cannot cancel a purchase
order:
Line Overbilled
You have been billed for more goods or
services than you ordered on at least one
distribution of your purchase order.
If you required receipt, you have been billed
for more goods or services than you have
recorded deliveries for at least one
distribution of your purchase order.
Therefore, you cannot cancel the purchase
order in its entirety.
Approval, Security, and Control 2-65
Line Overdelivered
You have recorded deliveries in excess of
goods or services ordered for at least one
distribution of this purchase order. Therefore,
you cannot cancel the purchase order in its
entirety.
Invalid Accounting Flexfield
One of the Accounting Flexfields you use for a
purchase order distribution has expired.
Therefore, you cannot create a journal entry
using this Accounting Flexfield. You need to
reactivate the Accounting Flexfield if you wish
to cancel this line.
Purchasing prints this Cannot Cancel Reason
only if you are using encumbrance or
budgetary control for purchase orders.
Shipment Fully Received
You have received all the goods or services
you ordered for at least one shipment of your
purchase order. Therefore, you cannot cancel
this purchase order in its entirety.
Shipment Fully Billed
You have been billed for all the goods or
services for at least one of your shipments for
this purchase order. Therefore, you cannot
cancel this purchase order in its entirety.
If you have been billed for goods or services in
excess of the quantity ordered, Purchasing
prints Line Overbilled as the Cannot Cancel
Reason.
Shipment Received But Not Delivered
You have recorded receipts for some goods or
services on at least one shipment for this
purchase order. You have not recorded
delivery of at least one of these items. Since
you have received goods for this purchase
order, you cannot cancel it in its entirety.
Included in Invoice
You have been billed for at least one item of
your purchase order. Therefore, you cannot
cancel the entire purchase order. Purchasing
prints this Cannot Cancel Reason only if you
are using encumbrance or budgetary control
for purchase orders.
The Partially in Range Documents section prints purchase orders or requisitions having
distributions which fall partially in the range of Accounting Flexfields you selected for
2-66 Oracle Purchasing User's Guide
cancellation. Column headings provide you with descriptions of the contents of each
column.
The Fully in Range section prints purchase orders or requisitions which meet all your
selection criteria, and whose distributions fall completely within the range of
Accounting Flexfields you selected for cancellation. Column headings provide you with
descriptions of the contents of each column.
After you review the Define MassCancel Listing, you can complete the MassCancel
process using the Run MassCancel window. You can cancel only purchase orders or
requisitions which are Fully in Range or Partially in Range.
Report Submission
Since this report is automatically submitted, it is not available in the Submit Requests
window.
Running MassCancel
Use the Run MassCancel window to cancel a group of purchase orders or requisitions
you have selected for cancellation, usually as part of your year-end processing. When
you cancel purchase orders or requisitions using this window, Purchasing reverses
encumbrances associated with your requisitions or purchase orders. If you cancel a
purchase order you created from a requisition, and you are using requisition
encumbrance or requisition budgetary control, Purchasing allows you to recreate the
requisition encumbrance using the distributions from your purchase order. Therefore, if
you are cancelling both requisitions and purchase orders as part of your year-end processing, you
need to cancel purchase orders before you cancel requisitions.
When you define your MassCancel criteria, you may select some purchase orders or
requisitions for cancellation that Purchasing is unable to cancel for some reason.
Purchasing does not display these purchase orders or requisitions in this window.
However, you can review the Define MassCancel Listing for purchase orders or
requisitions that are not cancellable, together with the reason why they are not
cancellable. When the concurrent manager runs the MassCancel process, it checks all
the purchase orders or requisitions for cancellability, using the same checks performed
by the Define MassCancel window. The purchase orders or requisitions that cannot be
cancelled are listed separately in the Run MassCancel Listing.
When you enter a batch name in this window, Purchasing displays the purchase orders
or requisitions that can be cancelled. Cancel Backing Requisition Lines is checked if this
option was selected for the batch in the Define MassCancel window. For each
document, Purchasing displays the document Type (Requisition, Standard Purchase
Order, Planned Purchase Order, or Blanket Purchase Agreement), document Number,
Creation Date, and Supplier Name. Fully in Range is checked if all the distributions of
this entry fall within all the Accounting Flexfield ranges you specify in the Define
MassCancel window.
When you run MassCancel, Purchasing cancels all purchase orders or requisitions that
Approval, Security, and Control 2-67
are selected. If you are using encumbrance or budgetary control, Purchasing creates
reversal entries for your commitments and obligations (pre-encumbrances and
encumbrances) when you cancel requisitions and purchase orders, respectively.
Prerequisites
•
Defining MassCancel, page 2-61
•
Define MassCancel Listing, page 2-65
To run MassCancel:
1.
Navigate to the Run MassCancel window from the menu.
2.
Enter the Batch Name of the MassCancel batch you want Purchasing to use for
cancellation. See: Defining MassCancel, page 2-61.
3.
If you are using budgetary control, enter the Cancel Date that you want Purchasing
to use to create reversing encumbrance entries in your general ledger. Purchasing
uses this date to reapply funds to a specific period. The date you enter must be in an
open purchasing period.
4.
Deselect each entry you do not want to cancel. If you save your work without
running MassCancel, your selections are saved and are redisplayed the next time
you query the batch.
5.
Select the Run MassCancel button.
To delete the MassCancel batch:
1.
Select the Delete MassCancel Batch button to delete the selected MassCancel batch.
Related Topics
Defining MassCancel, page 2-61
Define MassCancel Listing, page 2-65
Run MassCancel Listing, page 2-68
Overview of Encumbrance Accounting, Oracle General Ledger User's Guide
Run MassCancel Listing
Use the Run MassCancel Listing to review purchase orders and requisitions you have
cancelled or were unable to cancel using MassCancel. Purchasing prints this report
automatically after you complete your Run MassCancel process. The listing is in three
sections: Unable to Cancel Requisitions, Unable to Cancel Purchase Orders, and
Cancelled Documents. The Unable to Cancel Requisitions and Unable to Cancel
2-68 Oracle Purchasing User's Guide
Purchase Orders sections print documents which fit your selection criteria but which
are not cancellable by MassCancel for another reason, which the report provides.
Purchasing prints one of the following reasons you cannot cancel a requisition:
Included in Purchase Order
You have matched at least one line of your
requisition to a purchase order. Therefore, you
cannot cancel the entire requisition.
One or more POs are created based on this
REQ
You have one or more purchase orders that
have been created based on this requisition.
Therefore, you cannot cancel the requisition.
REQ is either incomplete, cancelled, or final
closed
The requisition is either incomplete, cancelled,
or final closed. Therefore you cannot cancel
the requisition.
Purchasing prints one of the following reasons you cannot cancel a purchase order:
Line Overbilled
You have been billed for more goods or
services than you ordered on at least one
distribution of your purchase order.
If you required receipt, you have been billed
for more goods or services than you have
recorded deliveries for at least one
distribution of your purchase order.
Therefore, you cannot cancel the purchase
order in its entirety.
Line Overdelivered
You have recorded deliveries in excess of
goods or services ordered for at least one
distribution of this purchase order. Therefore,
you cannot cancel the purchase order in its
entirety.
Invalid Accounting Flexfield
One of the Accounting Flexfields you use for a
purchase order distribution has expired.
Therefore, you cannot create a journal entry
using this Accounting Flexfield. You need to
reactivate the Accounting Flexfield if you wish
to cancel this line.
Purchasing prints this Cannot Cancel Reason
only if you are using encumbrance or
budgetary control.
Approval, Security, and Control 2-69
Shipment Fully Received
You have received all the goods or services
you ordered for at least one shipment of your
purchase order. Therefore, you cannot cancel
this purchase order in its entirety.
Shipment Fully Billed
You have been billed for all the goods or
services for at least one of your shipments for
this purchase order. Therefore, you cannot
cancel this purchase order in its entirety.
If you have been billed for goods or services in
excess of the quantity ordered, Purchasing
prints Line Overbilled as the Cannot Cancel
Reason.
Shipment Received But Not Delivered
You have recorded receipts for some goods or
services on at least one shipment for this
purchase order. You have not recorded
delivery of at least one of these items. Since
you have received goods for this purchase
order, you cannot cancel it in its entirety.
Included in Invoice
You have been billed for at least one item of
your purchase order. Therefore, you cannot
cancel the entire purchase order. Purchasing
prints this Cannot Cancel Reason only if you
are using encumbrance for purchase orders.
When you cancel purchase orders or requisitions and you are using encumbrance or
budgetary control, Purchasing creates relieving encumbrance entries for your purchase
orders or requisitions. See: Overview of Encumbrance Accounting, Oracle General Ledger
User's Guide.
Report Submission
Since this report is automatically submitted, it is not available in the Submit Requests
window.
Related Topics
Defining MassCancel, page 2-61
Running MassCancel, page 2-67
2-70 Oracle Purchasing User's Guide
3
Requisitions
Overview of Requisitions
With online requisitions, you can centralize your purchasing department, source your
requisitions with the best suppliers, and ensure that you obtain the appropriate
management approval before creating purchase orders from requisitions. You can use
Master Scheduling/MRP to generate online requisitions automatically based on the
planning requirements of your manufacturing organization. See: Overview of
Implementing Planning Recommendations, Oracle Master Scheduling/MRP and Supply
Chain Planning User's Guide. You can use Inventory to generate online requisitions
based on replenishment requirements. See: Overview of Inventory Planning and
Replenishment, Oracle Inventory User's Guide. You can use Work in Process to generate
online requisitions for outside processing requirements. See: Overview of Outside
Processing, Oracle Work in Process User's Guide. Finally, you can use Purchasing to create
internal requisitions, which are handled as internal sales orders and are sourced from
your inventory rather than from outside suppliers like purchase requisitions. See:
Overview of Internal Requisitions, page 3-13.
Purchasing provides you with the features you need to satisfy the following basic
requisition needs. You should be able to:
•
Create, edit, and review requisition information online. You should also be able to
enter suggested supplier information, delivery instructions, multiple accounting
distributions, and notes to buyers, approvers, and receivers.
•
Review the current status and action history of your requisitions. You should
always know who approves requisitions and whether they are in the approval,
purchasing, receiving, or delivery stage.
•
Route requisitions according to your approval structure. You should also be able to
set authorization limits by amount, charge account, item category, and location.
•
Review and approve requisitions that need your approval. You should also be able
Requisitions 3-1
to see the full requisition detail and review the action history before you approve a
requisition.
•
Print requisitions (with status Approved, Cancelled, Rejected, In Process,
Pre-Approved, and Returned) for off-line review and approval. You should always
be able to track the status of requisitions through the approval process.
•
Import requisitions from other systems such as material or distributions
requirement planning applications
•
Perform online funds checking before creating requisitions. You should always
know how your planned expenses compare to your budget.
•
Automatically source requisitions from outstanding blanket purchase agreements,
contract purchase agreements, or quotations you have made with suppliers
•
Support flexible pricing rules
•
Create requisitions quickly and easily for commonly purchased items
•
Create internal requisitions that are sourced from your inventory by means of
internal sales orders
•
Provide attachments as notes on requisition headers and lines
•
Assign requisition lines to buyers and review buyer assignments for requisition
lines
•
Forward all requisitions awaiting approval from one approver to an alternate
approver. Within your security and approval constraints, you should be able to
reroute requisitions from one approver to another whenever you want.
•
Record suggested foreign currency information for each requisition line
Major Features
Eliminate Paper
With Purchasing, your requestors submit requisitions online. You therefore eliminate
the need for paper requisitions that you can misplace or lose during the approval
process.
Quick Online Entry
With Purchasing, you can easily create requisitions online. Complete a requisition for
any item by simply entering the requestor name, item description, delivery location,
3-2 Oracle Purchasing User's Guide
price, delivery quantity, and accounting distribution. Purchasing uses the Account
Generator to enter the distribution automatically whenever possible.
Approval Status
Purchasing automatically displays the approval status of your requisition and informs
you whether it is Approved, Cancelled, In Process, Incomplete, Pre-Approved, Rejected,
or Returned. You know where your requisition is at all times.
Action History
Purchasing lets you review the action history of requisitions as they move through the
approval process. Purchasing uses your security and approval structure to help you
forward requisitions. On-line notifications keep your requisitions moving. If someone
rejects a requisition, you always know who and why.
Easy Resubmission
Purchasing lets you resubmit a rejected requisition for reconsideration. Depending on
how you define system setup options, resubmitted requisitions return either to the
original approver for reconsideration or to an alternate approver that you choose.
Easy Cancellation / Final Close
Purchasing lets you cancel or final close a requisition or requisition line before your
manager approves it or before a buyer places it on a purchase order.
If you are using encumbrance or budgetary control, Purchasing automatically creates
negative debit encumbrance entries for the cancelled requisitions. When you final close
a purchase order, Purchasing creates credit entries which reverse the encumbrances.
Easy Assignment
Purchasing lets you assign requisitions to specific buyers and review which requisitions
are Assigned and Unassigned.
Accurate Accounting
Purchasing uses the Account Generator to automatically supply accounting information
as part of a requisition. You can allocate line item quantities to cost centers,
organizations, projects, or departments. You can also create multiple distributions for a
single item. For instance, you can allocate a computer system purchase across more
than one cost center or organization
Requisitions 3-3
Maximum Flexibility
Purchasing provides maximum flexibility by letting requestors create requisitions
quickly and add details later. In the requisition header and on each line item,
Purchasing provides space for descriptions and notes to approvers, buyers, and
receivers.
Quick Customization
Purchasing lets you use Descriptive Flexfields to tailor the format of the requisition
header and line blocks to your unique needs without additional programming.
Online Funds Availability Checking
Purchasing lets you verify whether you have enough funds available in your budget
before you complete a requisition. You can check and reserve funds for a requisition at
any level of a requisition.
Online Approvals
Purchasing lets you approve or reject requisitions online. You can access full requisition
detail and prior action history to review the full detail before making an approval
decision. Depending on your approval controls, you may be able to update a requisition
before you approve it.
Requisition Templates
This feature, accessible through the Supplier Item Catalog, lets you quickly create
requisitions for commonly purchased items. Buyers create templates that group
commonly ordered items like office supplies into one place.
Quantity Rounding
If Quantity Rounding for inventory sourced lines is enabled in the Purchasing Options
window, Purchasing either displays the rounded quantity you should have entered in a
warning message or it updates the quantity to the appropriate rounded quantity. The
rounding is based on the Unit of Issue (or primary unit of measure if the Unit of Issue is
not defined) and the Rounding Factor defined for the item in Inventory. Rounding is up
or down to the nearest whole Unit of Issue/primary unit of measure using the rounding
factor.
Flexible Pricing
Pricing for your items can default in from the item definition or from negotiated
documents. If your pricing is complex you can define your pricing rules using the
3-4 Oracle Purchasing User's Guide
Oracle Advanced Pricing engine. To price requisitions and purchase orders based on
pricing rules setup in Oracle Advanced Pricing, the requisition line need simply
reference a contract purchase agreement. See: Oracle Advanced Pricing User's Guide.
Requisition Printing
Purchasing provides a requisition printing capability to provide hard copy requisitions.
You can print requisitions after completing them, or have somebody print and
distribute all requisitions. Use the Printed Requisitions Report to print the requisitions
which have the following status: Approved, Cancelled, Rejected, In Process,
Pre-Approved, and Returned. The report does not include requisitions with status
Incomplete.
Quick Access to Particular Requisitions
You can place requisitions that you reference frequently in the Oracle Applications
Navigator. Placing documents in the Navigator is useful when you need to query large
documents with multiple lines, shipments, or distributions. When the requisition is
open, choose Place on Navigator from the File menu. When you choose the Documents
tabbed region in the Navigator, you can then access that document directly from within
the Navigator. You can also do this with purchase orders. See: Using the Navigator's
Documents Region, Oracle Applications User's Guide.
Note: Once you place a document in the Navigator, it is the first thing
you see in the Navigator the next time you log into Purchasing. Choose
Functions to return to the Purchasing menu.
Requisition Import
Using Requisition Import, you can import requisitions from other Oracle Applications
or from non-Oracle systems. Requisition Import lets you integrate Purchasing with new
or existing applications such as Material or Distribution Requirement Planning systems.
You can import requisitions as often as you want. Then, you can review or place these
requisitions on purchase orders. See: Requisition Import Process, page 12-27
Master Scheduling/MRP, Work In Process, Order Management, and Inventory all
provide requisition information to the requisition interface table from which
Requisition Import creates requisitions. While requisitions can be imported with any
approval status, they are most commonly approved since they correspond to specific
production schedules, outside processing, or stock resupply. However, if you are using
requisition encumbrance, Requisition Import changes the Approved status to
Pre-Approved so that you can reserve funds for the requisition.
Requisitions within Center-Led Procurement
Requesters can create requisitions that are sourced to global agreements (global enabled
Requisitions 3-5
blanket purchase agreements or contract purchase agreements). This is of particular
benefit to large organizations in which management wants other business units to use
pricing or terms negotiated by a business unit. This in turn increases the bargaining
power of the negotiating business unit with their supplier as they are negotiating on
behalf of multiple business units.
To take advantage of these global agreements the buyer in the negotiating operating
unit must enable the other operating units that are to use the global agreement. See:
Entering Purchase Agreement Information, page 4-55.
Requisition Types
Benefits of Online Requisitions
You can save time, money, and paper by processing requisitions online. With a paper
system, you must provide forms to the requestor, the requestor must send the form to
someone else to be approved, and the buyer must manually consolidate requisitions to
place on a purchase order. Throughout all of these transactions, you may generate a
number of errors, waste time, and lose money. Some of the many problems you may
incur with paper requisitions include:
•
The requestor may not fill in the requisition completely or accurately.
•
The requestor's handwriting may be illegible.
•
Someone without proper authority can potentially approve a requisition.
•
The requestor might have to mail the requisition to an approver at a different
location and wait a number of days to get it back.
•
The approver or buyer may lose or damage the requisition.
•
The buyer may translate the information from the requisition to the purchase order
incorrectly.
•
You may lose significant quantity discounts if the buyer cannot locate all the
requisitions that reference a particular item.
Purchasing helps you eliminate these problems with online requisition processing.
When you create a requisition online, you can instantaneously send it to an approver.
The approver can access your requisition from any computer and provide a note,
change the requisition, and reserve funds if necessary. You also set controls to ensure
that only the appropriate people can approve a particular requisition. After approval,
inventory sourced lines on the requisition are handled as internal sales orders. For
supplier sourced lines, the buyer can then consolidate all similar requests onto a single
purchase order to negotiate the best price. Through all of these transactions, you never
have to use any paper. By processing requisitions online, you significantly reduce the
length of the purchasing cycle. You can also provide requisition line defaults for both
3-6 Oracle Purchasing User's Guide
supplier and internally sourced lines to speed up requisition entry and automatically
source items to improve buyer efficiency. At any point, the requestor can review the
requisition online to check the status of the requisition.
Implementing Online Requisitions
Many companies want to provide online requisitions to everyone in the company.
Others want to limit the number of users who have access to the system. Purchasing is
flexible enough to meet the needs of your company. To give everyone access to the
system, simply create a user name for each employee in the company and assign the
employee the appropriate responsibilities. You can easily designate a smaller group of
individuals as requisition preparers if you want to limit the number of requestors on the
system. These people can create requisitions for anyone in the company by identifying
the appropriate requestor directly on the requisition line. You might also want to limit
some preparers to internal requisitions and others to purchase requisitions. You can
also print requisitions to obtain signature approvals if some of the approvers do not
have access to the system. You can then assign an individual to update the
authorization status for these requisitions.
Purchase Requisitions
Use the Requisitions window to create requisitions. You must choose the requisition
type (internal or purchase). You can also provide a description, unlimited notes, and
defaults for requisition lines. For each requisition line, you choose the item you want to
order along with the quantity and delivery location. You can get sourced pricing from
catalog quotations or open blanket purchase agreements. You can also choose a price
from a list of historical purchase order prices. In the Distributions window, you can
charge the item to the appropriate accounts, or you can let the Account Generator create
the accounts for you. Once you complete the requisition, you send it through the
approval process. See: Entering Requisition Lines, page 3-50. See: Using the Account
Generator in Oracle Purchasing, page E-6.
Internal Requisitions
Unlike purchase requisitions, which are supplied from purchase orders, internal
requisitions are supplied from internal sales orders. Internal requisitions are not picked
up when you AutoCreate RFQs or purchase orders, nor can they be assigned to a buyer
in the Assign Requisitions window. See: Internal Requisitions Overview, page 3-13.
Requisition Templates
Use the Requisition Templates window to define requisition templates for items you
purchase frequently. For example, if you frequently buy certain office supplies, you can
set up an office supplies template for your requestors. This template consists of a list of
all items, prices, and sourcing information you want available to the requestor. When
you want to order items from this template, use the Supplier Item Catalog, choose the
office supplies template, and indicate the quantity you want to order. Purchasing
Requisitions 3-7
supplies default sourcing and delivery information. See: Defining Requisition
Templates, page 1-45.
Imported Requisitions
Purchasing lets you import or reschedule requisitions from other Oracle or non-Oracle
systems. See: Requisition Import Process, page 12-27. For example, Work in Process
uses Requisition Import to create requisitions for outside processing. See: Overview of
Outside Processing, Oracle Work in Process User's Guide. Similarly, Master
Scheduling/MRP automatically creates requisitions using Requisition Import when you
mass load purchase requisitions. Master Scheduling/MRP also automatically
reschedules existing requisitions by updating the need-by date during this process. See:
Overview of Implementing Planning Recommendations, Oracle Master Scheduling/MRP
and Supply Chain Planning User's Guide. If you are using Inventory, you can send a
requisition requirement to Purchasing and then run Requisition Import in Purchasing to
create the requisition. See: Overview of Inventory Planning and Replenishment, Oracle
Inventory User's Guide.
Paper Requisitions
You do not need to create a requisition online to purchase an item. Instead, you can
reference a paper requisition number directly on the purchase order Distribution
Details. See: Entering Purchase Order Distributions, page 4-75. Later, you can use the
Purchase Orders window to review the status of the purchase orders referencing the
paper requisitions.
Reserving Funds for Requisitions
Purchasing lets you reserve or encumber funds for requisitions which are not sourced
to an encumbered blanket purchase agreement (or global agreement). If you are using
budgetary control, you can also check to see whether funds are available before you
encumber the requisition. If you have problems reserving funds for a requisition, the
Approval Errors window lets you review the reasons.
Purchasing automatically transfers the encumbrance from the requisition to the
purchase order when you successfully approve the purchase order on which you placed
the requisition. Purchasing also automatically transfers the encumbrance back to the
requisition when you cancel the purchase order. See: Overview of Encumbrance
Accounting, Oracle General Ledger User's Guide.
Note: Even if someone with sufficient approval authority approves a
requisition, its status may still be Pre-Approved if funds were not able
to be reserved at the time of approval. A Pre-Approved requisition
does not show up as supply until its status changes to Approved. Once
funds are reserved for the Pre-Approved requisition, the requisition's
status changes to Approved and shows up as supply.
3-8 Oracle Purchasing User's Guide
Reviewing Requisitions
After you create a requisition, you can query the requisition at any time to review the
status, action history, or problems with encumbering funds. Use the Requisition
Summary windows to review requisitions. If a buyer has already placed the requisition
line onto a purchase order, you can review the purchase order number. You can also
review the changes that the buyer made to the requisition and the quantity receivers
have delivered. See: Finding Requisitions, page 3-36.
Use the View Action History window to review the action history of requisitions. You
can navigate to this window from the Tools menu in many entry windows. You can see
who has approved or rejected the requisition and the corresponding notes the
approvers provided. For Inventory sourced lines, you can review the status of the
internal sales order. See: Viewing Action History, page 10-1.
Use the Approval Errors window to review reasons you could not completely reserve
funds for requisitions.
Managing Requisitions
Purchasing lets you manage requisitions to help buyers save money and time when
creating requisitions.
Sourcing Requisitions
You can suggest buyer and supplier information when creating a requisition. Simply
provide the appropriate information in the Source Details tabbed region of the
Requisitions window. A buyer can then query all requisition lines based on this
information to help consolidate purchase orders. Alternatively, you can automatically
source requisition line items by using the Sourcing Rule and Approved Supplier List
windows. You use the Approved Supplier List window to list the primary blanket
purchase agreement, contract purchase agreement, or catalog quotation for each item
you want to order. When you create a requisition line for any item that you list in the
Sourcing Rule and Approved Supplier List windows, Purchasing automatically
provides suggested supplier, buyer, and source document information for you. See:
Automatic Sourcing, page 5-24. See: Approved Supplier List, page 5-35. Purchasing
also automatically provides the sourcing information if you use Requisition Import to
import requisitions from an outside system. See: Requisition Import Process, page 1227.
Assigning Requisitions to a Buyer
Purchasing lets you manage the buyers' workload by reviewing how many requisition
lines are assigned to a particular buyer and reassigning them to distribute the workload
better. You can also review how many unassigned requisitions are urgent or are needed
within a certain time limit so that you can assign them to the appropriate buyers for
immediate ordering. See: Finding Requisition Lines for Review or Assignment, page 5-
Requisitions 3-9
.
Returning Requisitions
A buyer can return a requisition line to the original preparer instead of placing it onto a
purchase order. Upon returning the requisition line, the buyer indicates the reason for
the return. For example, the purchase price may exceed the requisition price, or the
buyer may know that the requested item is no longer being purchased. When a buyer
returns an individual requisition line, Purchasing automatically returns all other lines
on the same requisition that are not currently on a purchase order. Purchasing returns
the other lines to let the preparer decide whether it is still appropriate to order the rest
of the requisition as is. See: Autocreate Purchase Order Options, page 6-3.
If you are using encumbrance and budgetary control and the requisition is not sourced
to an encumbered blanket purchase agreement, Oracle Purchasing automatically creates
negative debit encumbrance journal entries in your general ledger system to reverse the
encumbrance that corresponds to the requisition you are returning.
Referencing Requisition Reports
You can use the Buyer's Requisition Action Required Report to review all current
requisition lines that are not currently on a purchase order. You can choose from a
number of report setup options to narrow the search to a particular list of approved
requisition lines. You can also print reports to review requisition status, requisition
distribution detail, and requisition import status. See: Buyer's Requisition Action
Required Report, page 11-9.
Managing Foreign Currency Information
For new requisitions, the initial default is the functional currency specified in the
Financials Options window. You can specify a different suggested foreign currency for
each requisition line.
If you source to a foreign currency blanket purchase agreement, contract purchase
agreement, or catalog quotation, Oracle Purchasing retrieves the foreign currency
information for the document. Your user-defined preferences for currency are
overridden by the currency information on the source document. This is also true even
if the source document currency is blank (the same as the base currency).
Purchasing automatically updates the functional unit price if you enter the foreign
currency unit price using the specified rate. Purchasing also updates the foreign
currency price if you update the functional unit price.
When you AutoCreate new purchase orders, Purchasing converts the requisition price
into a purchase order price based on specified currency and rate information. (See:
Entering Currency Information, page 4-60.) You cannot specify currency information in
AutoCreate if you are adding requisition lines to an existing document. See: Entering
Document Information and Completing AutoCreate, page 6-15.
Purchasing performs price tolerance verification for all currencies and uses the
3-10 Oracle Purchasing User's Guide
requisition total in functional currency to verify authorization limits.
Cancelling Requisitions
With Purchasing, you can submit a requisition for approval and then cancel the
requisition or a requisition line if you no longer want to order the item. Use the Control
Documents window to cancel the entire requisition or specific requisition lines. Once a
buyer places a purchase requisition line onto a purchase order, you can no longer cancel
the requisition line or the corresponding requisition header. Similarly, you cannot
cancel a requisition line that has been modified with the AutoCreate Documents
window, or a line that is currently on a sales order. See: Controlling Documents, page 257.
If you cancel an internal sales order or back order that was generated by an internal
requisition, you get a warning message that the order line is related to a requisition line
that is now awaiting cancellation. At this point, you can navigate to the Control
Documents window and explicitly cancel the requisition line. Alternatively, you can
continue processing sales orders and later use the MassCancel function to cancel any or
all requisition lines awaiting cancellation. See: Defining MassCancel, page 2-61.
When you cancel an internal requisition related to a cancelled sales order, the quantity
cancelled on the requisition is the same as the quantity cancelled on the sales order, not
the remainder of the requisition. This is because a quantity of goods may have been
shipped but not yet delivered against the requisition. See: Controlling Documents, page
2-57.
If you are using encumbrance or budgetary control, Purchasing automatically creates
negative debit encumbrance journal entries in your general ledger system to cancel the
encumbrance that corresponds to the requisition header or lines you are cancelling
(unless they were sourced to an encumbered blanket purchase agreement). See:
Budgetary Control and Online Funds Checking, Oracle General Ledger User's Guide.
Requisitions that were imported from a drop shipped sales order can not be cancelled.
These requisitions are automatically cancelled when the drop shipped sales order is
cancelled.
Final Closing Requisitions
Use the Control Documents window to final close requisitions and requisition lines
when you no longer need the items. You cannot final close a requisition line a buyer
placed on a purchase order, a line that has been modified with the AutoCreate
Documents window, or a line that is currently on a sales order. Purchasing
automatically creates credit encumbrance journal entries to reverse the encumbrance
that corresponds to the requisition header or lines you are final closing (unless they
were sourced to an encumbered blanket purchase agreement).
Requisitions 3-11
Updating Requisitions
Updating Incomplete Requisitions
As a requisition preparer, you can change the information on a requisition before you
send it through the approval process. To update a requisition you created using the
Requisitions window, simply navigate to the Find Requisitions window and query up
the requisition. Once you send a requisition through the approval process, your access
to it is determined by the security and approval structure.
You may also unreserve an incomplete requisition to reverse any encumbrances.
Recreating Requisitions
When you cancel a purchase order line in the Control Documents window, you have
the option to either have the referencing requisition lines cancelled or return them to the
requisition pool for placement on another purchase order. If you have already partially
received the item, Purchasing recreates the requisition line for the unreceived quantity.
See: Controlling Documents, page 2-57.
Using Modify to Update Requisitions
A buyer may want to alter a requisition line before placing it onto a purchase order. The
buyer can either return the requisition line to the preparer for changes or simply choose
Modify from the Tools menu while in the AutoCreate Documents window to update
the requisition line. You can split the requisition into multiple lines so that you can
source the requisition across different suppliers. Or, you can change the requisition line
if the preparer did not request the item correctly. For example, the preparer might order
a computer, though you know you buy computers by ordering the peripherals and
keyboards separately. The preparer can later review the requisition to see the original
requisition line and the changes the buyer made. See: Additional Autocreate Features,
page 6-7.
You can not modify, split, or return a requisition line that references a drop shipped
sales order.
Updating Requisitions During Approval
Instead of approving a requisition, the approver can reject the requisition and send a
note to the preparer to make specific changes. Alternatively, the approver can make
changes directly to the requisition without rejecting it. From the Notifications Summary
window or any of the requisitions summary windows, the approver can navigate to the
Requisitions window and make the appropriate changes, if Approver Can Modify is
enabled for the document type in the Document Types window. See: Viewing and
Responding to Notifications, page 2-29.
3-12 Oracle Purchasing User's Guide
Overview of Internal Requisitions
Internal requisitions provide the mechanism for requesting and transferring material
from inventory to other inventory or expense locations. When Purchasing, Order
Management, Shipping Execution, and Inventory are installed, they combine to give
you a flexible solution for your inter-organization and intra-organization requests. You
should be able to:
•
Set up your supply chain and automatically source your requirements from
inventory or suppliers
•
Define your inter-organization shipping network, and optionally require that you
use internal orders for your inter-organization transfers
•
Use intransit inventory when you want to track items as they move between
organizations
•
Reduce warehousing, shipping, and handling costs by requesting items in fixed lot
sizes
•
Use the same windows for data entry and inquiry that you use for purchase
requisitions and sales orders
•
Take advantage of standard requisition and sales order functionality to suit your
individual business requirements
•
Automatically generate inventory replenishment requisitions and fulfill them via
internal or external suppliers
•
Automatically source MRP generated requisitions to internal or external suppliers
•
View the status of requests online
•
Use internal requisitions to move inventory items from one inventory organization
to another, even if that organization belongs to a different operating unit, legal
entity, or ledger
Major Features
Complete Item Sourcing Definition
Purchasing and Inventory combine to provide the flexibility you need to define your
item sourcing information. You can use the default sourcing options to automatically
determine the correct source type and source for your requests. You can specify either
Inventory or Supplier as the default source type, as well as the source organization and
subinventory for internal requests.
Requisitions 3-13
Inter-Organization Shipping Network
Inventory provides the features you need to define your inter-organization shipping
network. For transfers between two organizations, you can specify whether to use
intransit or direct shipments. You can also require internal orders for transfers between
specific organizations.
Flexible Processing
You can tailor internal requisition processing to fit your requirements. You can limit
online interaction by setting up background processes to automatically perform specific
actions such as creating inventory replenishment requests and creating internal sales
orders in Order Management. Or, you can take advantage of other features such as
online requisition approvals, internal sales order cycles, and online receipt and delivery
of internally requested items.
Creating Online Requisitions
You can create online internal requisitions for both expense and inventory destinations
using the same windows you use to create purchase requisitions. You can combine
inventory and supplier sourced requisition lines on the same requisition. Also,
Purchasing uses your item sourcing information to default the correct source type and
supplier for the item and destination. You can define requisition templates for
commonly requested internally sourced items.
Full Unit of Issue Enforcement
Purchasing offers the option of full unit of issue enforcement in which quantities
entered on internal requisitions are automatically rounded to a full unit of issue defined
for the item. You can also set this option to recommend a rounded quantity on
requisitions, but leave the opportunity to change the recommended quantity. The
quantity rounding is based on the specified unit of issue, if available, otherwise on the
primary unit of measure.
Inventory Replenishment Requisitions
Inventory generates replenishment requisitions through min-max planning, reorder
point planning, subinventory replenishment for replenishment counts, and Kanban
replenishment. Purchasing uses your item sourcing information to create
inter-organization or subinventory transfer requests. See: Overview of Inventory
Planning and Replenishment, Oracle Inventory User's Guide. See: Demand for Internal
Requisitions, page 3-16.
3-14 Oracle Purchasing User's Guide
MRP Generated Requisitions
MRP generated requisitions are sourced using the same item sourcing information that
you define for inventory replenishment and online requisitions. For "buy" items, the
Requisition Import process uses the item sourcing information to create either a
purchase requisition or an inter-organization internal requisition for planned orders.
Approvals and Controls
You can control internal requisition approvals and document security just as you
control purchase requisitions. Purchasing gives you the flexibility you need to set up
approvals and limits for internal requests. You can use the same authorization rules, or
you can relax or tighten controls for internal requisitions.
Creation of Internal Sales Orders
When you approve an internal requisition for a stocked item, Purchasing translates the
requisition into an internal sales order, providing a link between the end user's
requirement and the physical demand against Inventory.
Order Management
Once you create an internal sales order from a requisition, you can manage internal
requisitions just as you manage regular sales orders. You can use Order Management to
define order cycles, approvals and holds to effectively process requisition orders. You
can selectively pick release and otherwise process internal sales orders as easily as you
do regular sales orders.
Complete Requisitions Status Visibility
You get complete visibility on the status of requests through inquiries and reports. You
get online visibility to the internal sales order number, as well as the shipment and
delivery status for requisitions. You can report on backordered items, internal
requisition status, and delivery discrepancies.
Exception Processing
Internal requisitions help you manage exceptions to your normal business flow. Order
Management automatically backorders your request when you have insufficient supply
to fill the internal order by creating another shipment line for the unavailable quantity.
You can reschedule orders when the shipment date changes, and the expected arrival
date on the intransit shipment is updated automatically.
Requisitions 3-15
Cancellation of Requisitions
You can easily cancel a request if you have a change in requirements or if you cannot
fulfill the entire order. Using Order Management, you can partially or fully cancel the
line quantities on the internal sales order. You complete the cancellation process by
cancelling the original requisition line in Purchasing.
Using Internal Requisitions
Internal requisitions provide a flexible solution to your inventory requisitioning needs.
You can eliminate user intervention when you do not need it, such as when you are
loading internal requisitions into Order Management or placing demand. The following
sections describe the entire business and information flow for internal requisitions, and
identifies opportunities for you to simplify processing.
Demand for Internal Requisitions
Demand for inventory requests can come from several sources. The primary sources
are:
•
Online user's request for stock items out of inventory
•
Inventory Replenishment Requests
•
Oracle Master Scheduling/MRP and Supply Chain Planning generated requisitions
•
External system's requests
Online Requests
Online requisitions give you the choice of supplier or inventory sourced requisitions.
Default sourcing information is determined by the requisition type, the item, and the
destination of the request. When you enter a requisition, Purchasing automatically
selects the correct source type and source information for the item and destination.
To restrict certain users to internal requisitions only, set their profile PO: Legal
Requisition Type to Internal. Purchasing then requires that they source all internally
orderable items from inventory. See: Entering Requisition Headers, page 3-48.
For frequently requested items, you can define requisition templates to create internal
requisitions quickly. Requestors can pull up the template they need, fill in the need-by
date and destination of the request, and specify the quantity for each desired item.
Internal requisitions also use the Account Generator, which automatically builds
account distributions. You can specify only one accounting distribution per inventory
sourced line. See: Using the Account Generator in Oracle Purchasing, page E-6.
3-16 Oracle Purchasing User's Guide
Inventory Replenishment Requests
Inventory automatically generates requisitions to maintain an item's stock level. The
requisitions may request stock from an internal predefined source organization or from
an outside supplier. See: Overview of Inventory Planning and Replenishment, Oracle
Inventory User's Guide.
Inventory generates replenishment requests automatically using the following methods:
•
Min-Max Planning
•
Reorder Point Planning
•
Subinventory Replenishments for Replenishment Counts
•
Kanban Replenishments
All inventory replenishment methods create requisitions via the Requisitions Open
Interface.
Important: If the destination subinventory uses locator control, you
must specify a primary locator for direct inter-organization and
subinventory transfers.
Tip: You can interface with third-party systems to enter count
information and load it into Inventory using the Replenishment
Interface. Inventory automatically creates replenishment requisitions
using the source and planning method you define.
Kanban Replenishments
In a pull-based system, inventory items for a particular part or assembly area are
replenished as soon as they are needed. When the items are needed, kanban cards in
Oracle Inventory change their Supply Status to Empty, and Inventory generates the
kanban replenishment request automatically. Then Requisition Import in Purchasing
validates and imports replenishment requests as requisitions. If the Source Type of the
request is Supplier, Purchasing creates a blanket release (if a blanket agreement exists)
or a standard purchase order (if a valid quotation exists) for the item. If the Source Type
is Inter-Org, Requisition Import generates an internal requisition for the item. See:
Overview of Kanban Replenishment, Oracle Inventory User's Guide. See: Requisition
Import Process, page 12-27.
Once Purchasing approves the standard purchase order, blanket release, or internal
requisition, Inventory automatically receives a status for the kanban card of In Process.
In Purchasing, Kanban replenishment requests look like any other purchasing
document, and you receive them like you do any other shipment. As soon as you
Requisitions 3-17
receive the item for delivery through the Receipts or Receiving Transactions windows
in Purchasing, Inventory automatically receives a status for the kanban request of Full,
indicating that the inventory supply has been replenished.
MRP Generated Requisitions
Master Scheduling/MRP creates requisitions for "buy" items when you release them
using the Planner Workbench. MRP generated requisitions are sourced using the same
rules as online and inventory replenishment requisitions. However, since MRP is
planning for the entire organization, inventory sourced requisitions for MRP planned
orders must be inter-organization transfer requests. You cannot request subinventory
transfers using internal requisitions for MRP planned orders, unless you specify a
non-nettable source subinventory on the internal requisition. See: Viewing On-hand
Quantities, Oracle Master Scheduling / MRP User's Guide.
External Systems
You can automatically import internal requisitions from other Oracle Applications or
existing non-Oracle systems using the Requisitions Open Interface. This interface lets
you integrate the Purchasing application quickly with new or existing applications.
Purchasing automatically validates your data and imports your requisitions. You can
import requisitions as often as you want. Then, you can review these requisitions,
approve or reserve funds for them if necessary, and place them on internal sales orders.
See: Requisition Import Process, page 12-27.
Internal Requisition Approvals
After you create an internal requisition, you can optionally require approval. For online
requests, you can set up approval rules that are specific for internal requisitions, or you
can share the same rules you use for purchase requisitions. If you do not require
additional approval steps, you can set up rules so that you can always complete and
approve the document in the Requisitions window. See: Entering Requisition Headers,
page 3-48.
Min-max planning, Reorder Point planning, and MRP generated requisitions are loaded
as approved requisitions through the Requisitions Open Interface. If you set the
Inventory Profile INV: RC Requisition Approval to Unapproved, you can optionally
load Subinventory Replenishment requisitions as unapproved and use the document
approval functionality in Purchasing. This profile option affects only Subinventory
Replenishment requisitions. See: Submitting a Document for Approval, page 2-32. See:
Oracle Inventory Profile Options, Oracle Inventory User's Guide. An internal requisition
corresponding to a kanban card in Oracle Inventory enters Purchasing through
Requisition Import with a status of Approved. (If encumbrance/budgetary control is on,
Purchasing sets the status to Pre-Approved.) As soon as the internal requisition is
approved, Inventory automatically receives a status for the kanban card of In Process.
See: Demand for Internal Requisitions, page 3-16. See: Requisition Import Process, page
12-27.
3-18 Oracle Purchasing User's Guide
Requisition supply is created for the destination organization as soon as the requisition
is approved. If you create approved requisitions through Requisition Import, supply is
created at the time the requisition is created. Master Scheduling/MRP and Inventory
planning get complete visibility to the incoming internal requisition supply so the
planning processes do not create additional reorders for items that you have already
requested.
Creation of Internal Sales Orders
Once you approve inventory sourced requisition lines, Purchasing translates the
requisition into an internal sales order, providing the link between the requestor's
requirement and the physical demand against inventory. You run two separate batch
processes to create the internal sales order from the approved requisition:
•
Create Internal Sales Orders. See: Create Internal Sales Orders Process, page 12-4.
•
Order Import. See: Order Import, Oracle Order Management Implementation Manual.
Purchasing uses location associations to create internal sales orders from internal
requisitions for a given deliver-to location. When you associate a customer and
customer site with a location and then enter an internal requisition with that location as
the deliver-to point, Purchasing uses the associated customer and customer site on the
internal sales order that it creates. The associated customer site becomes the ship-to site
for Order Management's ship confirmation. See: Defining Locations, page 1-17. See:
Creating and Updating Customers, Oracle Receivables User's Guide.
Internal orders are automatically scheduled by setting the Schedule Ship Date on the
sales order to the Need-by Date from the requisition. If you specify a subinventory on
the internal requisition line, Order Management reserves the goods and uses only the
specified subinventory for allocation. If the goods do not exist at the specified
subinventory, Order Management backorders them, even if they do exist in another
subinventory.
The Create Internal Sales Orders process loads the Order Management open interface,
OrderImport, using the order type you define in the Purchasing Options window. See:
Defining Internal Requisition Options, page 1-37. OrderImport creates internal sales
orders from the records in the interface table, and determines the order cycle and
defaults values based on the order type.
Note: You should not drop-ship internal sales orders. See: Drop
Shipments, page 4-113.
Multi-Org: Creation of Internal Sales Orders Across Operating Units
A Multi-Org implementation of Purchasing enables separate operating units within an
organization to operate independently of each other. However, you may still need to
obtain goods from another operating unit, and Purchasing supports this. You can create
Requisitions 3-19
an internal sales order for an item in another operating unit. When creating this internal
sales order, you must create it in the destination organization's operating unit, and all
Order Management activity must take place within that destination operating unit. For
example, the following table lists the generalized steps involved and indicate the
organization in which they take place.
Step
Action
Operating Unit 1
Inventory Org A
Operating Unit 2
Inventory Org B
1
Create and approve internal requisition.
X
2
Run Create Internal Sales Orders.
X
3
Run Order Import in Order.
Management
X
4
Perform pick release and ship confirm
in Order Management.
X
5
Receive goods.
X
When you use internal sales orders to transfer goods from another operating unit, the
items' transfer cost is posted to the intercompany payables and receivables accounts as
defined in the shipping network and an intercompany invoice can be generated. See:
Inter-Organization Shipping Network, Oracle Inventory User's Guide.
Management of Internal Sales Orders
You manage internal sales orders using some of the same windows as customer sales
orders. Once you import an internal requisition using OrderImport, you can use the
Sales Orders window to change the reserved quantity, schedule date, ship-to contact,
and shipment priority. The destination organization has complete visibility to any
changes in incoming supply based on schedule date changes or partial shipments.
The price on the internal sales order line comes directly from the price on the
requisition line. OrderImport does not use the price list to recalculate the line price.
However, the price that is used when posting the intercompany payables and
receivables information is the item cost plus any markup defined in the shipping
network. See: Inter-Organization Shipping Network, Oracle Inventory User's Guide.
Once an internal sales order is scheduled, it is visible as demand. You can reserve
inventory for internal requisitions either to the organization, or the organization and
subinventory levels.
Order Management does not process internal sales order lines for the Receivables
Interface, even if the Receivables Interface is an action in the order cycle for the internal
3-20 Oracle Purchasing User's Guide
sales order.
Note: You should not drop-ship internal sales orders. See: Drop
Shipments, page 4-113.
Pick Release for Internal Sales Orders
You can directly pick release from the Shipping Transactions window. Or you can
selectively release one internal sales order at a time by entering the internal sales order
number as a pick release criterion. Or, you can release a group of internal sales orders
by specifying the internal sales order, order type, and a range of dates, or by using the
shipment planning delivery, trip, and trip stop information. You can also release
internal sales orders with customer orders by entering a range of dates.
When you enter an internal requisition, you must specify the source organization, and
you can optionally specify the subinventory source. If you do not enter source
subinventory information on an internal requisition, picking proceeds using the
standard inventory picking rules.
Oracle Shipping Execution releases only order lines which meet the prerequisites of the
order cycle specific to the internal sales order type.
See: Oracle Shipping Execution User's Guide.
Ship Confirmation for Internal Sales Orders
Use the Shipping Transactions window to ship confirm entire or partial shipments. You
can also backorder the internal sales order when you do not have enough on-hand
quantity to fulfill the request.
Partial shipments are handled by splitting internal order lines into multiple shipment
schedules with different delivery dates. You cannot change the warehouse or the
subinventories on the delivery details.
When you ship confirm, Shipping Execution updates the Inventory Interface and
generates a delivery ship notice outbound (DSNO) transaction. Inventory automatically
updates on-hand quantities to reflect the internally ordered items that you shipped. If
you are shipping using intransit inventory, the destination organization gets complete
visibility of the incoming intransit supply. Internal requisition supply is reduced by the
quantity of the shipment.
You can also enter the expected arrival date at ship confirmation to provide a more
accurate supply picture to MRP and inventory planning.
See: Oracle Shipping Execution User's Guide.
Requisitions 3-21
Management of Internal Requisitions
Update Intransit Information
For inter-organization transfers that use intransit, you can use the Manage Shipments
window to update the expected arrival date. Master Scheduling/MRP and inventory
planning get complete visibility to the change in expected arrival date. See: Managing
Shipments, page 9-81.
Receive, Inspect, and Deliver Items
Use the Receipts and Receiving Transactions windows to process receipts of
inter-organization requests that use intransit. Receiving personnel can simply enter the
requisition number on the shipping documentation and process the entire shipment
using express receiving transactions. For receipt of partial shipments, you can record
the quantities for the individual items included in the shipment. You can receive items
into receiving, or you can receive the goods directly to the final destination, either an
inventory or expense location.
If you receive items into receiving/inspection, you process inspections, transfers, and
deliveries for internal requisitions just as you would process supplier receipts or
inventory transfers. See: Overview of Receiving, page 9-1.
View Internal Requisition Status
In Purchasing, you can view the internal sales order and any changes to it, by selecting
View Sales Orders on the Tools menu in the Requisition Lines Summary window. Or,
you can access the Sales Orders window directly in Order Management and query on
the specific internal sales order number, or any other relevant criteria. The Sales Orders
window provides information about the status of the internal sales order, quantities
shipped, quantities cancelled, and dates of transactions.
You can also report on requisition status. See: Backordered Internal Requisitions Report,
page 11-6, Internal Requisitions Status Report, page 11-19, Internal
Requisitions/Deliveries Discrepancy Report, page 11-20, and Requisitions on Cancelled
Sales Order Report, page 11-77.
Cancelling Internal Requisitions
If you cancel an internal sales order that was generated by an internal requisition, you
get a warning message that the order line is related to a requisition line that is now
awaiting cancellation. You can then use the Control Document window to cancel the
requisition line. See: Controlling Documents, page 2-57.
Purchasing lets you cancel or final close an inventory sourced requisition line only after
you cancel the internal sales order in Order Management. See: Cancelling Orders, Oracle
Order Management User's Guide.
3-22 Oracle Purchasing User's Guide
Internal Requisitions Processing Summary
Below is a summary of key transactions and processes you use for Internal requisitions.
If you are using inventory replenishment or MRP generated internal requisitions, Pick
Release and Ship Confirmation are the only required online transactions. If you are
creating online requests, you also use the Requisitions window. See: Online Processing
Automation for Internal Requisitions, page 3-30 for suggestions on how to implement
automated processing and reduce online interaction.
Step
Action
Required
Window/Process
1
Create Internal
Requisition
On-line or
Automatic
Requisitions window and
Requisition Import process:
Inventory replenishment, MRP
Planned Orders, External Sources
2
Approve Requisition
Optional
Approve Documents window
3
Create Internal Sales
Orders
Automatic
Create Internal Sales Orders process,
OrderImport process
4
Modify Order
Schedule
Optional
Sales Orders window
5
Pick Release Orders
On-line
Release Sales Orders for Picking
window or Shipping Transactions
window
6
Confirm Pick-Wave
Move Order
Optional
Transact Move Order window (if not
auto-pick confirming from Pick
Release window)
7
Ship Confirmation
On-line
Shipping Transactions window,
Order Management Interface,
Inventory Interface
8
Receive Items
Optional
Receipts window, Receiving
Transaction Processor
9
Inspect Receipts
Optional
Receiving Transactions window,
Receiving Transaction Processor
Requisitions 3-23
Step
Action
Required
Window/Process
10
Deliver Receipts
Optional
Receiving Transactions window,
Receiving Transaction Processor,
Inventory Transaction Processor
11
View Requisition
Status
Optional
Requisition Headers Summary
window, Requisition Lines Summary
window
12
Cancelling Internal
Orders
Optional
Sales Orders window, Control
Document window, Define
MassCancel window, Run
MassCancel window
Internal Requisitions Setup Overview
Internal requisitions provide a solution to a variety of inventory requisitioning needs.
When you implement this feature, you need to carefully review the options and
configure the applications to support your business processes.
For example, if you are using internal requisitions to generate inventory replenishment
requisitions and fulfill them via subinventory transfers within a plant, you may want to
limit your online interaction to pick release and ship confirmation. You do not have to
record separate ship, receive, and deliver transactions when the same employee actually
picks the items out of the source subinventory and places them at the destination in one
step.
Product
Internal Requisition Setup Function
Order Management
Update profile options, Define transaction types, Define order
number sources, Update/define default value rules, Define price lists,
Define Concurrent Program Resubmission interval for the
OrderImport process
Shipping Execution
Define release sequence rules, Define pick slip grouping rules, Define
shipping parameters
Inventory
Define internally requested items, Define inter-organization shipping
network, Define item sourcing, Define Concurrent Program
Resubmission intervals in Inventory planning and replenishment
windows
3-24 Oracle Purchasing User's Guide
Product
Internal Requisition Setup Function
Purchasing
Define Internal Requisition Deliver-To Sites, Set Legal Requisition
Type profile, Define Purchasing Options, Define Concurrent Program
Resubmission intervals for the Requisition Import and Create Internal
Sales Orders processes
Minimum Order Management Setup for Internal Requisitions
You use standard sales order functionality to define transaction types for internal sales
orders. You also need to use the Purchasing Options window to specify the order type
you use for internal requisitions. See: Defining Internal Requisition Options, page 1-37.
You must perform the following setups in Order Management to use the internal
requisition features. You may choose to take advantage of other Order Management
features which require additional setups. See: Oracle Order Management
Recommended Setup, Oracle Order Management Implementation Manual.
Define Order Management Profile Options
Set the profile option OM: Item Flexfield. This profile option defines which structure of
the item flexfield to use. See: Order Management Profile Options, Oracle Order
Management Implementation Manual.
Note that Order Management uses the same ledger as defined in the System Options
window in Oracle Receivables. See: Accounting System Options, Oracle Receivables
User's Guide.
Use the Parameters window in Order Management to define the Item Master
organization for this installation.
Tip: Set the Item Validation Organization to the same Item Master
organization as your purchasing reference organization (set in the
Financials Options window). See: About Financials Options, Oracle
Payables User's Guide.
Define Transaction Types
Use the Transaction Types window to define order and line types. Order Management
provides default order cycle workflows that you must associate with each order and
line type. See: Defining Transaction Types, Oracle Order Management Implementation
Manual.
Requisitions 3-25
Define an Order Management Number Source For Internal Requisitions
Define order number sources to automatically number internal sales orders as you
import them. You can use a single order number source to assign unique numbers to all
your orders, or you can use a different order number source within each order type.
See: Defining Order Number Sources, Oracle Order Management Implementation Manual.
Define a Price List For Internal Requisition
Although internal requisitions use the item's cost as the price, Order Management
requires price lists to process all sales orders. Define a price list for use with the internal
requisition order type. You do not need to add any lines to the price list. See: Defining a
Price List, Oracle Order Management Implementation Manual.
Decide which Default Value Rules to Use
Default value rules define the defaulting that occurs as orders are entered or imported.
Order Management provides default value rules that you can use for internal sales
orders. Confirm that the default value rules that Order Management provides suit your
business needs. If not, use the Defaulting Rules window to modify them. See: Defining
Default Value Rules, Oracle Order Management Implementation Manual.
Define Inventory Accounting (Account Generator)
Order Management can dynamically create the Cost of Goods Sold (COGS) Account for
each shipped or returned item based on rules you define. Order Management provides
a default Account Generator process to be used in determining the COGS Account
during the Inventory Interface process.
You can either accept the default COGS Account Generator process or customize it to
suit your business needs. For more information on how to accept or customize this
feature, see the Oracle Order Management documentation.
Internal Sales Orders Processing Constraints (Optional)
Order Management processing constraints apply to all your sales orders, including
internal sales orders imported from Purchasing. Processing constraints prevent users
from adding, updating, deleting and cancelling order information beyond certain points
in the order cycles. You can use the System rules Order Management provides, which
prevent data integrity violations, or define your own, stricter, rules. See: Defining
Processing Constraints, Oracle Order Management Implementation Manual.
Minimum Shipping Execution Setup for Internal Requisitions
Perform the following steps:
•
Define release sequence rules
3-26 Oracle Purchasing User's Guide
•
Define pick slip grouping rules
•
Define shipping parameters
See: Oracle Shipping Execution User's Guide.
Minimum Purchasing Setup for Internal Requisitions
Define Internal Requisition Deliver-To Sites
Purchasing uses locations to identify the final delivery location for both inventory and
supplier sourced requisitions. As a requestor, you want to specify the same destination
for both purchase and internal requisitions. As a shipping clerk, you are concerned with
the final delivery location of the item, regardless whether it is for an internal or external
customer. Purchasing and Order Management use location associations to minimize the
decisions you need to make when you create internal requests.
Use the Location window to define a location for each site that receives either inventory
or supplier sourced material. See: Defining Locations, page 1-17. For internal requisition
deliver-to locations, you also need to associate the locations with a customer. Use the
Customers window to define a Customer and Ship-To site for each deliver-to location.
Use the Business Purposes region in the Customers window to associate your internal
locations to your customers. See: Creating and Updating Customers, Oracle Receivables
User's Guide
Tip: Create an internal customer for each destination organization, and
customer ship-to site for each deliver-to location within the destination
organization.
Tip: Define the same address for the customer ship-to site as the
deliver-to location. Order Management prints the ship-to address on
the shipping documentation.
Tip: Order Management requires both a ship-to and an invoice-to for
each order, even though internal order lines are not invoiced. When
you define a customer, either make the ship-to address both a ship-to
and bill-to business purpose and set the Primary flag to Yes on the
business purpose, or assign the ship-to to a bill-to location.
Set Up Internal Requisition Approvals and Security
You set up approval and security rules for internal requisitions just as you do for
purchase requisitions. Use the Document Types, Positions, Position Hierarchies,
Approval Groups, and Assign Approval Groups windows to set up approval and
Requisitions 3-27
security options for internal requisitions. See: Setting Up Document Approval and
Security, page 2-1.
Define Purchasing Options for Internal Requisitions
You need to set up these additional purchasing options to use internal requisitions:
•
Order Type
Pick the Order Type you defined in Order Management for internal sales orders.
Purchasing uses this type to create sales orders from internal requisitions. See:
Defining Internal Requisition Options, page 1-37.
•
Enforce Quantity Rounding
In the Purchasing Options window, specify whether you enforce lot quantity
rounding or display advisory messages when you create online requisitions using
the Requisitions window. See: Defining Control Options, page 1-33
Minimum Inventory Setup for Internal Requisitions
Define Internally Orderable Items
When you define internally orderable items, there are a few attributes that require extra
consideration. See: Defining Items, Oracle Inventory User's Guide.
•
Inventory and Order Management regions
Items you use on internal requisitions must be Inventory enabled, internally
orderable and stockable, shippable, and Order Management transactable for the
source organizations. Under Inventory, you need to select the Inventory Item,
Transactable, and Stockable options. Under Order Management, you need to select
the Internal Ordered, Internal Orders Enabled, OE Transactable, and Shippable
options.
•
Source Type - General Planning region
Specify a default source type of Inventory or Supplier.
You cannot createintraorganization internal requisitions for MRP planned items.
When you specify sourcing information for MRP planned items, you need to ensure
that you do not define an intraorganization sourcing rule for these items.
•
List Price - Purchasing region
Inventory sourced requisitions use item costs for pricing. You may still want to
specify a list price for items that are sourced both from suppliers or inventory.
•
Unit of Issue - Purchasing region
You use units of issue to round order quantities, minimizing shipping,
3-28 Oracle Purchasing User's Guide
warehousing, and handling costs.
Enter the unit of measure you typically use to issue the item from inventory.
Purchasing uses this unit of measure as the default for internal requisition lines
sourced from inventory when you create them in the Requisitions window.
•
Rounding Factor - Purchasing region
Enter a number between 0 and 1. This factor determines how to round the quantity
on an internal requisition that results from conversions between the requisition line
unit of measure and the item's Unit of Issue. This factor ensures that the unit of
issue resolves to an integer, rather than a fractional amount.
Purchasing either performs rounding automatically or advises you of the suggested
quantity, depending how you set up your purchasing options.
Set Up Item Sourcing
Internal requisitions use the sourcing information you specify in Inventory. All items,
subinventories, and organizations may have item sourcing information specified for
them. At each level (item, subinventory, or organization), you can choose whether items
are replenished from inventory or purchased from a supplier.
•
Source Type
Specify Inventory as the default source type if you want to source requests from an
internal stock location.
•
Source Organization and Subinventory
If you specify an item to be replenished from inventory, you must specify a source
organization; a source subinventory is optional. When you place an order for this
item, Inventory creates an internal requisition for the item from the source location.
In case of a conflict between the item, subinventory, and organization levels, internal
requisitions use the following order of precedence to determine the default source type
and source for the item and destination:
•
Sourcing information specified in the item-subinventory relationship
•
Sourcing information specified in the subinventory definition
•
Sourcing information specified in the item definition
•
Sourcing information specified in the organization setup options
Define the Inter-Organization Shipping Network
Use the Shipping Networks window to define your inter-organization network. You
must enable the network between each source (shipping) and destination (receiving)
Requisitions 3-29
organization.
•
Internal Order Required
Select Internal Order Required if you want all transfers between these two
organizations to use internal orders.
•
Transfer Type
Specify whether you ship material directly, or use intransit inventory for shipments
between these two organizations.
Important: If you use Lot, Serial, or Item Revision Control in both
the source and destination organization, you must use intransit if
you ship from an organization with less control (i.e. Lot Control), to
an organization with more control (i.e. Lot and Serial Control).
•
Receipt Routing
For intransit transfers, you can choose from the following primary receipt routings:
Standard receipt, Inspection required, or Direct delivery.
•
FOB Point
Specify whether the destination organization takes ownership of transferred items
when they are issued to intransit (Shipment), or when they are received out of
intransit (Receipt).
•
Transfer Charge Type
Specify how you want to apply transfer costs to the destination organization.
Choose either a predefined or requested percentage of the transaction value or a
fixed amount that represents an added value.
Set Up a Customer Association
To define your organization as the destination for an internal requisition, Order
Management has to recognize you as a customer. See: Defining Locations, page 1-17.
See: Creating and Updating Customers, Oracle Receivables User's Guide
Online Processing Automation for Internal Requisitions
Internal requisitions provide a number of options to automate processing. You can set
up the following processes to run automatically as often as you like to limit online
interaction and streamline processing. See: Submitting a Request, Oracle Applications
System Administrator's Guide.
•
Reorder Point Planning Report
3-30 Oracle Purchasing User's Guide
•
Min-Max Planning Report
•
Requisition Import
•
Create Internal Sales Orders
•
OrderImport
Tip: Create a report group to run all requests back-to-back over
specific time intervals when you are using internal requisitions for
automatic subinventory transfers.
Internal Requisitions Example
Purchasing provides flexible internal requisitions that you can tailor to meet your
needs. Review the example in this section to better understand how you can use
internal requisitions.
You are not required to manage internal requisition activities exactly as described in
the following example. Rather, the objective of these examples is to highlight the
flexibility of internal requisitions across a variety of situations.
Oracle Manufacturing recommends that you experiment and review the results of
different approaches to determine the best implementation of the internal requisition
functionality for your unique needs. You should use this example as a starting point to
better understand how you might use internal requisitions.
Example Overview
Global Computers, Incorporated is a computer manufacturer with organizations in
Austin, TX and Sacramento, CA.
The Austin organization repetitively manufactures plastic components and uses the
components, along with purchased items, to assemble base and cover assemblies in the
Sacramento organization. Ownership of inter-organization transfers between Austin
and Sacramento changes hands at the time of receipt (FOB Point: Receiving).
The Sacramento organization uses the Austin base and cover assemblies to assemble
configurations of Sentinel computers. Sacramento also has a local sales offices for
customer visits and demonstrations. Your salespeople distribute sales brochures during
customer visits.
Employees can request Sentinel Computers for their own use, as well as mouse pads
and wrist pads for their offices.
Define the following items at Global Computers:
Requisitions 3-31
Item
Item Description
A54888
Sentinel Base Assembly
Assembled in Austin, Sub Assembly of Sentinel
Computer, Internally Orderable in Austin, Default
Source Type of Inventory, Default Source
Organization of Austin, Default Source
Subinventory of Repetitive Assembly
S86662
Sentinel Cover Assembly
Sub Assembly of Sentinel Computer, Assembled
in Austin, Internally Orderable from Austin,
Default Source Type of Inventory, Default Source
Organization of Austin, Default Source
Subinventory of Repetitive Assembly
S56302
Sentinel Computer
Assembled in Sacramento, Internally Orderable by
Employees
C13139
Hard Drive
Used in Sentinel Base Assembly
S85773
Sales Brochure
Purchased from external suppliers, Stocked at
Sacramento for internal use, Limited quantities on
hand at the sales office
M1002
Mouse Pad
Purchased from external suppliers, Stocked at
Sacramento for internal use
M1002
Wrist Pad
Purchased from external suppliers, Stocked at
Sacramento for internal use
Define the following subinventories at Global Computers:
Organization
Subinventory
Austin
AUS-Finished Goods: Contains completed Sentinel Base Assemblies,
Contains completed Sentinel Cover Assemblies, Tracked - asset
subinventory
Austin
Repetitive Assembly: Contains Hard Drives for final assembly in WIP,
Uses Min/Max replenishment to signal replenishment, Request from
AUS-Stores subinventory
Austin
AUS-Stores: Contains additional supply of Hard Drives, Tracked - asset
subinventory
3-32 Oracle Purchasing User's Guide
Organization
Subinventory
Sacramento
SAC-Finished Goods: Contains completed Sentinel Computers,
Tracked - asset subinventory
Sacramento
SAC-Stores: Contains completed Sentinel Base Assemblies shipped
from Austin, Contains completed Sentinel Cover Assemblies shipped
from Austin, Tracked - asset subinventory
Sacramento
Office Supplies: Contains supply of Wrist Pads and Mouse Pads for
internal use, Not tracked - expense subinventory
Sacramento
Storage: Central storage for excess Sales Brochures, Tracked - asset
subinventory
Sacramento
Visit Center: Contains local supply of Sales Brochures for customer
visits, Space for only 100 Sales Brochures, Not tracked - expense
subinventory
Inventory Replenishment Request (Manufacturing)
You use one Hard Drive during the assembly of each Sentinel Base Assembly, and
keep a limited supply of the Hard Drives in your Repetitive Assembly subinventory. As
you consume Hard Drives from the Repetitive Assembly, you want to automatically
send inventory replenishment requests to transfer additional Hard Drives from your
Stores subinventory. The material handler needs to receive the inventory request and
transfer the material before you run into a shortage situation. You create a report group
that submits the Min-Max Planning, Requisition Import, Create Internal Sales Orders,
and OrderImport processes every two hours.
As soon as the Hard Drive supply in the Repetitive Assembly subinventory drops
below the minimum quantity, the next run of the Min-Max Planning process
automatically creates a replenishment order for the reorder quantity. The reorder uses
the item sourcing information to automatically create an intraorganization request in
the Austin plant to move Hard Drives from Stores to the Repetitive Assembly
subinventory. The request is automatically loaded as an internal requisition and an
internal sales order, providing visibility of the request to the material handlers in the
Austin plant.
The material handler also runs Pick Release every two hours to identify the pull
requests from the shop floor subinventory. The next run of Pick Release creates a move
order line for the subinventory transfer of Hard Drives. The material handler picks the
Hard Drives out of the Stores subinventory, completes a ship confirmation and
replenishes the Repetitive Assembly subinventory before a shortage occurs. At ship
confirmation, the on-hand balances of the two subinventories are automatically
Requisitions 3-33
updated.
MRP Generated Inter-Organization Request (Manufacturing)
You use Oracle Master Scheduling/MRP and Supply Chain Planning in Sacramento to
schedule production of the final assembly of the Sentinel Computer. The Sentinel Base
Assembly and Sentinel Cover Assembly are provided by the Austin organization, so
you define these items as "buy" items in Sacramento. You also specify the following
sourcing information for the item:
•
Source Type - Inventory
•
Source Organization - Austin
•
Source Subinventory - AUS-Finished Goods
Master Scheduling/MRP recommends that you produce 400 Sentinel Computers to
fulfill demand over the next four weeks (100 each week), and you only have 100
Sentinel Cover Assemblies and 100 Sentinel Base Assemblies on hand in Sacramento.
You need five days to ship material from Austin to Sacramento, so the planner
implements planned orders for 100 Sentinel Cover Assemblies and 100 Sentinel Base
Assemblies for the next three weeks using the Planner Workbench.
When the planner releases the planned orders for Sacramento, Master Scheduling/MRP
automatically loads the Requisitions Open Interface and submits Requisition Import.
Requisition Import uses the sourcing information that you set up to create a requisition
line for each week sourced from the Austin AUS-Finished Goods subinventory. In the
background, the Create Internal Sales Orders and OrderImport processes automatically
load the internal sales order against the Austin organization.
What if you have a three day production delay in Austin and you need to delay the
third shipment of Sentinel Base Assemblies for a few days? Sacramento needs
visibility to the delay to adjust the production schedules of the final assembly of the
Sentinel Computers. In Austin, you can use the Sales Orders window to update the
scheduled shipment date by three days, or choose a different freight carrier for faster
delivery if you need to expedite the shipment to prevent a shortage in Sacramento.
When you ship the third shipment from Austin, you can update the expected arrival
date, giving the planner and MRP in Sacramento full visibility of supply changes.
Each ship confirmation of the Sentinel Base Assemblies creates an intransit shipment
from Austin to Sacramento. You do not require inspection of your own
inter-organization transfers, so the receiving clerk in Sacramento receives directly into
the Final Assembly subinventory when the shipment arrives. The intransit inventory
balance is automatically updated and the inter-organization accounting entries are
created along with the receipt transaction.
Inventory Replenishment Request (Office Stock Locations)
In the Sacramento sales office, you use internal requisitions to replenish your stock of
3-34 Oracle Purchasing User's Guide
sales brochures in the Visit Center.
Sales representatives use your brochures well, and most customers take brochures with
them after the visit. You want easy access to brochures in the Visit Center, but only
have room for 100 Sales Brochures. You typically use about 75 a week, but the number
fluctuates with sales activity. Sales representatives take what they need; you do a stock
count on Monday and Wednesday of each week and replenish whenever the stock
count falls below 25.
You need to define min-max information for the Sales Brochures that you stock in the
Visit Center subinventory. Use the Item Subinventories window to specify a planning
method of Min-max planning, a minimum quantity of 25, and a maximum quantity of
100.
Requisition Import creates an approved internal requisition for subinventory transfers,
and the sales order is automatically loaded.
The material handler reviews the picking slip, pulls the 80 Sales Brochures from Storage
Subinventory and delivers them to the Visit Center. After delivering the material the
handler records the shipment using the Confirm Shipments window. The shipment,
receipt, and delivery information is recorded at once, and the on-hand balance of the
Storage subinventory is updated automatically. Inventory automatically creates the
necessary accounting entries to reduce the overall value of Sales Brochures in the
Storage subinventory and charges the accounts associated with the Visit Center
subinventory.
Online Request for Goods out of Inventory
In Sacramento, you stock low-cost office supplies on site to provide quick delivery to
your employees. Employees can request items that are sourced from suppliers or
inventory, but they do not know the source type at the time of the request. You also
require internal requisitions to process requests for goods out of the stock locations. You
have a company policy to always request items from Office Supplies whenever
possible. You do not require any additional approvals, and a material handler picks the
items out of inventory and delivers them directly to your office. A one day turnaround
time is required for all internal requests.
As a requestor, you want to order the following items to improve your comfort and
productivity:
•
Sentinel Computer
•
Mouse Pad
•
Wrist Pad
•
Glare Screen (not stocked on site)
Use the Requisitions window to create your request. Since company policy dictates that
you request items from inventory whenever possible, the default requisition type is
Requisitions 3-35
Internal Requisition and the default source type is Inventory. When you create the
four requisition lines for your items, Purchasing automatically uses the item sourcing
information to source the Sentinel Computer from the SAC-Finished Goods
subinventory. Since the Glare Screen can only be purchased from suppliers, Purchasing
sets the source type to Supplier and uses your sourcing rules and Approved Supplier
List entries to determine the suggested supplier and document information. See:
Automatic Sourcing, page 5-24. See: Approved Supplier List, page 5-35.
Material handlers need immediate visibility of your requests to be able to deliver in 24
hours. The system administrator sets the Create Internal Sales Orders and OrderImport
processes to run every hour for internal sales orders.
The material handler in charge of the Office Supplies subinventory runs Pick Release
twice a day to generate pick slips. The material handler reviews the picking slip, pulls
the Mouse Pad and Wrist Pad from Storage and delivers them to your office. After
getting your signature, the handler records the shipment using the Confirm Shipments
window. The shipment, receipt, and delivery information is recorded at once, and the
quantity delivered on the internal request is updated.
Office Supplies is an expense subinventory, and the correct accounts are charged when
you receive the supplies into this subinventory. Since you are sourcing from an expense
subinventory, ship confirmation does not generate any accounting entries for the issue
of the items from the Office Supplies subinventory to your office location.
A separate material handler receives the Sentinel Computer request, and picks and
ships it from the SAC-Finished Goods subinventory. When you complete the ship
confirmation, Inventory automatically issues the Sentinel Computer out of the
SAC-Finished Goods asset subinventory to the expense location listed on the
requisition. Inventory and Purchasing also record the accounting transactions to credit
the SAC-Finished Goods asset account and debits the appropriate charge account
listed on the requisition.
Finding Requisitions
Use the Find Requisitions window to:
•
Access the Requisitions window.
•
Perform requisition inquiries at header, line, and distribution levels
Depending on the function security assigned to your responsibility, you have varying
levels of access to information. A responsibility defines an application user's current
privileges while working with Oracle Applications. See: Function Security for
Purchasing, page D-1.
To enter search criteria:
1.
Navigate to the Find Requisitions window. Then enter as many as desired of the
search criteria described in the following steps.
3-36 Oracle Purchasing User's Guide
2.
Select the Operating Unit for this search.
3.
Enter the requisition number. If you enter a requisition number, you can also enter
a Line number.
4.
Select the requisition Type (Purchase or Internal).
5.
Enter the Preparer.
6.
Enter the Requestor.
7.
Enter the Buyer.
8.
Select Yes or No to restrict the search to Modified requisitions.
9.
Enter the Reference Number.
10. Enter the Import Source.
11. Enter the Line Type.
12. Use the tabbed regions to further restrict the search:
•
In the Item region, you can enter the following search criteria: Item number,
Revision number, Category, item Description, and Supplier Item number.
•
In the Status region, you can limit the search by Approval status (Approved,
Requisitions 3-37
Incomplete, In Process, Pre-Approved, Rejected, or Returned), Control status
(Open, Cancelled, or Finally Closed), or Reserved status (Yes or No).
•
In the Date Ranges region, you can enter date ranges for the following dates:
Creation, Need By, and Closed.
•
In the Sourcing region, you can limit the search by Source (Supplier or
Inventory). For Supplier sourced requisitions, you can further limit the search
by Supplier, Site, and Currency. For Inventory sourced requisitions, you can
further limit the search by Organization and Subinventory. If you have enabled
vendored managed inventory, you can limit your search results to those items
by checking the VMI box.
•
In the Deliver To region, you can limit the search by Destination Type (Expense,
Inventory, or Shop Floor), Organization, Location, and (for Inventory
destinations only) Subinventory.
•
In the Related Documents region, you can limit the search by Document Type,
Document number and Line Number, Purchase Order number, and drop
shipment Sales Order number.
•
In the Accounting region, you can limit the search by Period, GL Date, Charge
Account, Budget Account, and whether there are Active Encumbrances (Yes or
No).
•
In the Projects region, you can limit the search by Project or Task number.
13. Select the Results group (Headers, Lines, or Distributions) to determine which
summary window to open. Depending on the search criteria you have specified, all
summary windows may not be available. For example, if you specify criteria in the
Accounting region, only the Distributions summary window is available.
14. Select the Find button to initiate the search and open the appropriate Summary
window.
To clear existing search criteria:
•
Select the Clear button to clear any existing search criteria.
To enter a new requisition:
•
Select the New button to open the Requisitions window. See: Entering Requisition
Headers, page 3-48.
Related Topics
Using the Requisition Headers Summary Window, page 3-39
Using the Requisition Lines Summary Window, page 3-40
3-38 Oracle Purchasing User's Guide
Using the Requisition Distributions Summary Window, page 3-42
Using the Requisition Headers Summary Window
Use the Requisition Headers Summary folder window to:
•
View requisition header information.
•
Drill down to view requisition line and distribution information.
•
Access the Requisitions window for entry of new documents.
•
Access the Requisitions, Requisition Preferences, and Control Document windows
for maintenance of existing information.
•
View information in the Action History window.
To navigate to the Requisition Headers Summary window:
•
In the Find Requisitions window, select Headers in the Results region and select the
Find button to open the Requisition Headers Summary folder window.
The following information is displayed: requisition Number, Preparer, Status,
Description, Total amount, Currency, Creation Date, Type, Cancelled status, Finally
Closed status, and Reserved status.
To drill down to view requisition line information:
•
Select the Lines button to drill down to the Requisition Lines Summary folder
window. You can also select View Lines on the Tools menu to open this window.
See: Using the Requisition Lines Summary Window, page 3-40.
Requisitions 3-39
To enter a new requisition:
•
Select the New button to open the Requisitions window. See: Entering Requisition
Headers, page 3-48.
To open the Requisitions window for the current line:
•
Select the Open button to open the Requisitions window and query the requisition
on the current line. Your options in this window depend on the status of the
requisition and your approval and security options. For example, if a requisition
has a status of In Process, you cannot open it from this window. See: Entering
Requisition Headers, page 3-48.
To view requisition distributions information:
•
Select View Distributions on the Tools menu to open the Requisition Distributions
Summary folder window. See: Using the Requisition Distributions Summary
Window, page 3-42.
To view action history:
•
Select View Action History on the Tools menu to open the Action History window.
See: Viewing Action History, page 10-1.
To view purchase orders:
•
Choose the Lines button to open the Requisition Lines Summary window. Then
select View Purchase Orders on the Tools menu to open the purchase order.
To view sales orders:
•
Choose the Lines button to open the Requisition Lines Summary window. Then
select View Sales Orders on the Tools menu to open the Sales Orders window.
To enter requisition control information:
•
Select Control on the Tools menu to open the Control Document window for the
document on the current line. See: Controlling Documents, page 2-57.
To enter requisition preferences:
•
Select Preferences on the Tools menu to open the Requisition Preferences window.
See: Entering Requisition Preferences, page 3-44.
Related Topics
Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide
Finding Purchase Orders, page 4-23
Using the Requisition Lines Summary Window
Use the Requisition Lines Summary folder window to:
•
View requisition line information.
3-40 Oracle Purchasing User's Guide
•
Drill down to view requisition distribution information.
•
Access the Requisitions window for entry of new documents.
•
Access the Requisitions, Requisition Preferences, and Control Document windows
for maintenance of existing information.
•
View information in the Action History window.
•
View purchase order and sales order information, if the requisition has been placed
on a purchase or sales order.
To navigate to the Requisition Lines Summary window:
•
In the Find Requisitions window, select Lines in the Results region and select the
Find button to open the Requisition Lines Summary folder window. You can also
navigate to this window from the Requisition Headers Summary window by
selecting the Lines button or View Lines on the Tools menu.
The following information is displayed: requisition Number, Line, Item, item
Revision, Category, item Description, quantity Ordered, quantity Delivered, Type,
UOM, Price, Need By date, Requestor, Total amount, Currency, Modified status,
Currency Price, Supplier, supplier Site, Supplier Item number, Contract number,
Contract revision, Source Document Type, PO Number, PO Line number, Reference
Number, Source Type, Source Organization, Source Subinventory, Destination
Type, Destination Organization, Deliver To, Destination Subinventory, Finally
Closed status, Cancelled status, and Reserved status.
To drill down to view requisition distribution information:
•
Select the Distributions button to drill down to the Requisition Distributions
Summary folder window. You can also select View Distributions on the Tools menu
to open this window. See: Using the Requisition Distributions Summary Window,
Requisitions 3-41
page 3-42.
To enter a new requisition:
•
Select the New button to open the Requisitions window. See: Entering Requisition
Headers, page 3-48.
To open the Requisitions window for the current line:
•
Select the Open button to open the Requisitions window and query the requisition
on the current line. Your options in this window depend on the status of the
requisition and your approval and security options. For example, if a requisition
has a status of In Process, you cannot open its line from this window. See: Entering
Requisition Headers, page 3-48.
To view purchase orders:
•
Select View Purchase Orders on the Tools menu to open the purchase order.
To view sales orders:
•
Select View Sales Orders on the Tools menu to open the Sales Orders window.
To view project contract information:
•
Select View Project Contract Information on the Tools menu
Related Topics
Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide
Viewing Action History, page 10-1
Finding Purchase Orders, page 4-23
Controlling Documents, page 2-57
Entering Requisition Preferences, page 3-44
Using the Requisition Distributions Summary Window
Use the Requisition Distributions Summary folder window to:
•
View requisition distribution information.
•
Access the Requisitions window for entry of new documents.
•
Access the Requisitions, Requisition Preferences, and Control Document windows
for maintenance of existing information.
•
View information in the Action History window.
To navigate to the Requisition Distributions Summary window:
•
In the Find Requisitions window, select Distributions in the Results region and
3-42 Oracle Purchasing User's Guide
select the Find button to open the Requisition Distributions Summary folder
window. You can also navigate to this window by selecting View Distributions on
the Tools menu in the Requisition Headers Summary and Requisition Lines
Summary windows.
The following information is displayed: requisition Number, Line number,
Distribution number, Item, item Description, UOM, Price, Quantity, Amount,
Charge Account, Contract Line number, and Contract Deliverable number.
To enter a new requisition:
•
Select the New button to open the Requisitions window. See: Entering Requisition
Headers, page 3-48.
To open the Requisitions window for the current line:
•
Select the Open button to open the Requisitions window and query the requisition
on the current line. Your options in this window depend on the status of the
requisition and your approval and security options. See: Entering Requisition
Headers, page 3-48.
Related Topics
Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide
Viewing Action History, page 10-1
Finding Purchase Orders, page 4-23
Entering Requisition Preferences, page 3-44
Requisitions 3-43
Entering Requisition Preferences
Use the Requisition Preferences window to enter requisition line defaults (including
currency, destination, project, and sourcing default information). These defaults are
applicable during this user session to all new requisition lines you create after you set
the defaults until you exit Purchasing. You can override these defaults for specific lines.
To enter main preferences:
1.
Navigate to the Requisitions Preferences window by selecting Preferences on the
Tools menu in the Requisitions window or in the Requisitions Headers, Lines, and
Distributions Summary windows. In the Main tabbed region, you can enter the
defaults described in the following steps.
2.
Enter the Need By date and time.
3.
Enter the GL Date to be used when funds are reserved. You can enter a GL Date
only if you set up your financials system options to use encumbrance or budgetary
control for requisitions. See: About Financials Options, Oracle Payables User's Guide.
See: Budgetary Control and Online Funds Checking, Oracle General Ledger User's
Guide.
4.
Enter the Charge Account for the cost of the items on the requisition line. The
account you enter here is used only for expense destinations, and it overrides any
account built by the Account Generator.
5.
Enter a Justification for your requisition line. Buyers and approvers can review this
3-44 Oracle Purchasing User's Guide
justification.
6.
For Internal requisitions only, enter a Note To Receiver. For example, you could
note that the receiver should unpack your requested items or that only you can
accept delivery. For both internal and purchase requisitions, you can provide
additional notes to the receiver by using attachments. See: Attaching Notes to
Purchasing Documents, page 1-32.
7.
Enter the default Reference Number for all requisition lines. You use the reference
number to match your requisition line with a specific work, project, etc.
8.
Enter the Transaction Nature. See: Defining Lookup Codes, page 1-54.
9.
Check Urgent to indicate that your requisition should be expedited. Buyers have
the option to process urgent requisitions faster when they AutoCreate purchase
orders from requisitions.
10. Enter a default suggested Currency for the requisition lines. This must be an
enabled code from the Currency window. See: Defining Currencies, Oracle General
Ledger User's Guide.
11. Enter the default Rate Type. You can also set this default in the Purchasing Options
window. Defining Default Options, page 1-37. Purchasing supplies you with one of
two predefined currency rate types: User or EMU Fixed. A rate type of User means
that you can enter a conversion rate between the foreign currency (or transaction
currency in a document entry window) and the base currency (or functional
currency, defined in your ledger). A rate type of EMU Fixed means that if either
your transaction currency or your functional currency is Euro (the European
Monetary Unit currency) and the other is another European currency, Purchasing
automatically enters a conversion Rate Date and Rate for you that you cannot
change.
You can define additional currency rate types in the Daily Conversion Rate Types
window. See: Defining Conversion Rate Types, Oracle General Ledger User's Guide.
12. Enter the default currency Rate Date.
13. Enter the default currency conversion Rate. Purchasing overrides this default when
you are entering requisition lines if the rate type is not User and if you have
established a rate for the rate type and date. See: Entering Daily Rates, Oracle
General Ledger User's Guide.
14. Enter the Destination Type to indicate the final destination of the purchased items:
•
Expense - The goods are delivered to the requestor at an expense location.
•
Inventory - The goods are received into inventory upon delivery. This option is
appropriate only if the item is stock enabled in the deliver-to organization.
Requisitions 3-45
•
Shop Floor - The goods are delivered to an outside processing operation defined
by Work in Process. This option is appropriate only for outside processing
items. If Enterprise Asset Management is installed, you can use this destination
for one-time (decription based) and non-stocked items to be delivered to a
maintenance work order location.
15. Enter the Requestor. This is the employee who requests the quantities on the
requisition lines. Purchasing copies this name as the requestor for every requisition
line.
16. Enter the Organization. The default is the requestor's organization. The List of
Values displays all valid receiving organizations.
17. Enter the delivery Location for all requisition lines. The default is the requestor's
location. You can pick any location that does not have an organization or any
location whose organization matches the deliver-to organization. See: Enter Person,
Oracle HRMS Enterprise and Workforce Management Guide. See: Defining Locations,
page 1-17.
If the Destination Type is Inventory, you can also enter the Subinventory. See:
Defining Subinventories, Oracle Inventory User's Guide.
18. Enter the Source type: Inventory or Supplier. If you have both options, you can
source requisition lines independently of the document type. You can also mix
inventory and supplier sourced requisition lines in the same requisition. Purchasing
creates one internal sales order for all Inventory source type requisition lines on this
requisition. You can use the Autocreate Documents window to place Supplier
source type requisition lines onto purchase orders.
For Inventory source type lines, you can enter a default Organization and
Subinventory. If you specify a subinventory for an internal requisition line, Order
Management reserves the goods and uses only the specified subinventory for
allocation. If the goods do not exist at the specified subinventory, Order
Management backorders them, even if they do exist in another subinventory.
For Supplier source type lines, you can enter the following defaults: Buyer, Note to
Buyer, Supplier, Site, Contact, and Phone. You can also check RFQ Required to
indicate that you want to require an RFQ before the buyer creates a purchase order
for the requisition. If RFQs are required and you AutoCreate a purchase order
before creating an RFQ for the requisition line, Purchasing displays a warning
message. You can also set this default in the Purchasing Options window. See:
Defining Default Options, page 1-37.
Project tabbed region
•
Use the Project tabbed region to enter additional information if your organization
has implemented any of the following products:
•
Oracle Projects
3-46 Oracle Purchasing User's Guide
•
Oracle Project Manufacturing
•
Oracle Grants
•
Oracle Project Contracts
The project information you enter is used by Oracle Projects for Deliver To
destination types of Expense, or by Oracle Project Manufacturing for Deliver To
destination types of Inventory or Shop Floor. See: Oracle Projects User's Guide. See:
Oracle Project Manufacturing Implementation Manual.
To enter project information preferences:
1.
Choose the Project Information tabbed region.
2.
Select a Project Number.
For a Deliver To destination type of Inventory or Shop Floor, you can optionally
enter a Project Number if the Project Control Level is set to Project in the Project
Information tabbed region of the Organization Parameters window.
For a Deliver To destination type of Expense, you can always optionally enter a
Project Number.
3.
If you entered a Project number, select a Task number.
You must enter a Task number for a Deliver To destination type of Inventory or
Shop Floor, if the Project Control Level is set to Task in the Organization
Parameters window and if you have entered a Project number.
4.
If Oracle Grants is implemented, select an Award identifier.
5.
Enter Expenditure information:
Expenditure information is required only if your Destination Type is Expense.
•
Select the Expenditure Type.
•
If you chose an Expenditure Type, enter an Expenditure Organization.
•
If you chose an Expenditure Organization, select the Expenditure Item Date.
To apply your defaults:
•
Select the Apply button to apply your defaults. The preferences entered here will
affect new lines entered after you select Apply until you exit the application.
Related Topics
Using the Account Generator in Oracle Purchasing, page E-6
Requisitions 3-47
Entering Requisition Headers
Use the Requisitions window to:
•
Enter internal and purchase requisitions. Your approval and security setup options
determine which types of requisitions you can enter.
•
Take approval actions on individual requisitions online.
•
Edit requisitions. Your approval and security setup options determine which
requisitions you can edit. See: Controlling Documents, page 2-57.
To enter requisition header information:
1.
Navigate to the Requisitions window from the menu, by selecting the New button
in the Find Requisitions and requisitions summary windows, or by selecting the
Requisitions button in the Order Pad of the Supplier Item Catalog.
The upper part of the Requisitions window has the following display-only fields:
•
Preparer - Your employee name from the Application User window.
•
Status - The requisition status:
•
Incomplete - The requisition is incomplete, or the preparer has not yet submitted
the requisition to an approver.
3-48 Oracle Purchasing User's Guide
•
Rejected - The approver rejected the requisition.
•
Returned - A buyer rejected the requisition. Purchasing returns to the preparer
all requisition lines within the same requisition that are not on a purchase
order.
•
Total - The currency code and the base currency total amount of all lines in this
requisition.
2.
Select the Operating Unit for this requisition.
3.
Enter a unique Requisition number. If automatic requisition number generation is
active, the cursor does not enter this field and the number is generated when you
save your work. See: Defining Numbering Options, page 1-40.
4.
Choose the Requisition Type:
•
Purchase Requisition - The requisition lines are usually satisfied from an outside
supplier by means of a purchase order.
•
Internal Requisition - The requisition lines are usually satisfied from inventory
by means of an internal sales order.
When you enter requisition lines you can source them independently of the
document type. You can mix inventory and supplier sourced requisition lines in the
same requisition of either document type. See: Profile Options in Purchasing, page
C-1.
To open the Supplier Item Catalog:
•
With the cursor in a requisition line row, select the Catalog button to open the
Supplier Item Catalog. See: Overview of the Supplier Item Catalog, page 5-5.
To take approval actions:
•
After completing a requisition, select the Approval button to open the Approve
Documents window. See: Submitting a Document for Approval, page 2-32
To check funds:
•
Select Check Funds on the Tools menu. See: Reserving Funds for Requisitions, page
3-8
To view tax:
•
Select Manage Tax on Tools menu to view and manage taxes.
If budgetary controls are enabled you can unreserve funds. See: Reserving Funds for
Requisitions, page 3-8
To release reserved funds:
1.
Select Unreserve from the Tools menu.
Requisitions 3-49
2.
Enter the Unreserve Date.
3.
Check Use Document GL Date to Unreserve to use the document's distribution GL
dates for the funds reversal instead of the unreserve date.
4.
Click OK to reverse the funds reservation on this document.
To enter requisition preferences:
•
Select Preferences on the Tools menu to open the Requisition Preferences window.
See: Entering Requisition Preferences, page 3-44.
To access your requisition quickly:
•
Choose Place on Navigator from the File menu. Choose the Documents tabbed
region in the Navigator to later access the requisition more quickly. See also: Using
the Navigator's Documents Region, Oracle Applications User's Guide.
Note: Once you place a document in the Navigator, it is the first
thing you see in the Navigator the next time you log into
Purchasing. Choose Functions to return to the Purchasing menu.
Related Topics
Overview of Requisitions, page 3-1
Entering Requisition Lines, page 3-50
Changing Encumbered Documents, page 4-112
Entering Requisition Lines
Use the Items tabbed region in the Requisitions window to enter requisition line
information.
You can choose a predefined item (See: Defining Items, Oracle Inventory User's Guide.) or
you can an enter an item without an item number.
To enter requisition line information:
1.
Navigate to the Lines tabbed region in the Requisitions window.
3-50 Oracle Purchasing User's Guide
2.
Enter a line Type for the requisition line. Line types help you define how you want
to categorize your items. The default for this field is the Line Type from the
Purchasing Options window. (See: Defining Default Options, page 1-37.) If you
change this line type, defaults from the Line Types window appear in the Category,
UOM and Price fields, and the cursor moves to the Category field. See: Defining
Line Types, page 1-61.
For purposes of requisition line entry, line types are handled in three classes:
amount-based, quantity-based, and outside processing. The defaults that appear
when you enter a line type are cleared if you change the line type to a different
class. Once you have committed a line, you can change the line type only to another
line type of the same class.
If Oracle Services Procurement is implemented, you can also select a fixed price
service line type. If you select the fixed price service line type the Item, Quantity,
UOM, and Price fields are not available for update.
3.
For quantity-based line types and outside processing line types, enter the Item you
want to request. Purchasing displays defaults for purchasing category, item
description, unit of measure, and unit price for this item. See: Defining Items, Oracle
Inventory User's Guide.
4.
Enter the Revision (if any) that corresponds to the item you want to order.
5.
Enter the purchasing Category. You cannot change the category if you provide an
item number in the Item field.
Requisitions 3-51
6.
Enter the item Description to explain the item in further detail. When you enter an
item number, Purchasing displays the item description from the Items window.
You can change this description only if the Allow Description Update attribute for
the item is enabled. See: Defining Items, Oracle Inventory User's Guide.
7.
Enter the unit of measure (UOM) you want to use for your requisition line. If you
enter an item number, Purchasing defaults the unit of measure for this item. If you
change this value, the quantity is rounded again if appropriate, and the price is
recalculated. If you enter a line type that is amount based, Purchasing uses the unit
of measure that you assigned to that line type in the Line Types window. You
cannot change the unit of measure of amount based items.
8.
Enter the Quantity you want to request for the item. You can enter decimal
quantities, but you must enter a value greater than 0.
You can use the Catalog button to get price breaks for different quantities from
catalog quotations or blanket purchase agreements.
If Quantity Rounding is enabled, Purchasing either displays the rounded quantity
you should have entered in a warning message or it updates the quantity to the
appropriate rounded quantity. The rounding is based on the Unit of Issue (or
primary unit of measure if the Unit of Issue is not defined) and the Rounding Factor
defined for the item in Inventory. Rounding is up or down to the nearest whole
Unit of Issue/primary unit of measure using the rounding factor. See: Overview of
Requisitions, page 3-1.
9.
Enter the unit Price for the item. You can enter the price in decimal format. You
must enter a value greater than or equal to 0. If you enter an item number,
Purchasing defaults a price for this item, but you can change this value. Your price
may change if you enter a suggested supplier and a source document later.
Unit prices are in the functional currency. If you need to enter a foreign currency,
see the instructions below.
If you create a requisition line for an amount based line type, Purchasing sets the
price to 1, and you cannot change it.
10. Enter the Need By date and time for the requested items. This is required only for
planned items. You must enter a date greater than or equal to the requisition
creation date.
The Charge Account is rolled up from a single distribution after the distribution is
created. If more that one distribution is created for the line, Multiple is displayed.
The lower part of the screen below the Lines tabbed region consists of optional
fields for which the default can be set in the Requisition Preferences window. See:
Entering Requisition Preferences, page 3-44.
11. If Oracle Services Procurement is implemented and you have selected a fixed price
based line type, enter the Amount.
3-52 Oracle Purchasing User's Guide
12. Enter the Destination Type:
•
Expense - The goods are delivered to the requestor at an expense location. The
destination subinventory is not applicable.
•
Inventory - The goods are received into inventory upon delivery.
•
Shop Floor - The goods are delivered to an outside processing operation defined
by Work in Process. Purchasing uses this option for outside processing items. If
Enterprise Asset Management is installed, you can use this destination for
one-time (description based) and non-stocked items to be delivered to a
maintenance work order location.
13. Enter the name of the employee who is requesting the item. You must provide a
Requestor before you can approve the requisition. The default is the requisition
preparer.
14. Enter the Organization.
15. Enter the delivery Location for the requested items. Purchasing defaults the
deliver-to location that you assign to the employee in the Enter Person window.
You must provide a deliver-to location before you can approve the requisition.
Before the source of the line can be Inventory, the deliver-to location must be linked
to a customer address in the Customer Addresses window. See: Creating and
Updating Customers, Oracle Receivables User's Guide.
16. Enter the Subinventory. This field applies only when the Destination Type is
Inventory.
17. Enter the Source type. The source type determines the source of the requisitioned
items. The choice you have in this field is dependent on the PO: Legal Requisition
Type profile option. You may be able to use either the Inventory or the Supplier
source type, or both types. See: Profile Options in Purchasing, page C-1.
Note that if you have both options, you can source requisition lines independently
of the document type. You can even mix inventory and supplier sourced requisition
lines in the same requisition. Purchasing creates one internal sales order for all
inventory source type requisition lines on this requisition. The supplier source type
requisition lines are placed onto purchase orders with the AutoCreate Documents
window.
Even if you are restricted to one type, Purchasing restricts the source type as
appropriate for the item. If you are restricted to Inventory but you are requesting a
Supplier item (Purchased Item attribute - Yes, Internal Ordered Item attribute - No),
the source type can be only Supplier. Conversely, if you are restricted to Supplier
requisitions and you ask for an Inventoryitem (Purchased Item attribute - No,
Internal Ordered Item attribute - Yes), the source type can be only Inventory. This is
allowed because a requestor may not know the item source type.
Requisitions 3-53
For Inventory source type lines, you can enter a default Organization and
Subinventory. If you specify a subinventory for an internal requisition line, Order
Management reserves the goods and uses only the specified subinventory for
allocation. If the goods do not exist at the specified subinventory, Order
Management backorders them, even if they do exist in another subinventory.
You can not enter an internal order for an Oracle Services Procurement fixed priced
service requisition line type.
18. For the Supplier source type, enter the suggested Supplier, Supplier Site, Contact,
and Phone. For the Inventory source type, enter the Organization and
Subinventory.
19. If Oracle Process Manufacturing (OPM) application is installed and implemented,
you are a process manufacturing user, and the selected purchasing organization is a
process organization, then the process fields are enabled. The three process fields
are Secondary UOM, Secondary Quantity, and Grade. See: Entering OPM line
information, page 3-56.
20. Save your work. If you save a requisition line without entering a distribution,
Purchasing tries to generate a distribution line for you, using the Account
Generator based on the information you have entered. If you want your
distribution account numbers to be generated based on project information, you
must enter project information in the Requisition Preferences or Requisition
Distributions windows before committing the distribution line. See To enter project
information preferences in: Entering Requisition Preferences, page 3-44. See To
enter project information in: Entering Requisition Distributions, page 3-57.
To enter line source details for the Supplier source type:
•
Navigate to the Source Details tabbed region. When the source type is Supplier, you
can enter the Note to Buyer, Buyer, RFQ Required, Supplier Item number, source
Document Type (Blanket, Contract, or Quotation), source Document, and document
Line Number.
If you have chosen a global agreement as the source document the Global box will
be checked and the owning organization displayed.
If Oracle Project Contracts is installed you can enter Contract number and Rev
(version number) in this region. Additional project contract information can be
entered in the Distributions window. See To enter project information in: Entering
Requisition Distributions, page 3-57
To enter line details:
•
Navigate to the Details tabbed region. You can enter a Justification, Note to
Receiver, Transaction Nature, Reference Number, UN Number, and Hazard class.
See: Defining Lookup Codes, page 1-54
3-54 Oracle Purchasing User's Guide
To enter line currency information:
1.
Navigate to the Currency tabbed region.
2.
Enter a suggested currency for the requisition line. This must be an enabled code
from the Currency window. The cursor enters the remaining currency fields only if
you have entered a currency here. See: Defining Currencies, Oracle General Ledger
User's Guide.
3.
Purchasing supplies you with one of two predefined currency rate types: User or
EMU Fixed. A rate type of User means that you can enter a conversion rate between
the foreign currency (or transaction currency in a document entry window) and the
base currency (or functional currency, defined in your ledger). A rate type of EMU
Fixed means that if either your transaction currency or your functional currency is
Euro (the European Monetary Unit currency) and the other is another European
currency, Purchasing automatically enters a conversion Rate Date and Rate for you
that you cannot change.
You can define additional currency rate types in the Define Daily Conversion Rate
Types form, and you can enter User or one of your additional types. See: Defining
Conversion Rate Types, Oracle General Ledger User's Guide.
4.
Enter the currency rate date.
5.
Enter the currency conversion rate. Purchasing overrides this default when you are
entering requisition lines if the rate type is not User and if you have established a
rate for the rate type and date. See: Entering Daily Rates, Oracle General Ledger
User's Guide
To enter outside processing information:
•
Select the Outside Services button to open the Outside Services window for outside
processing line types. See: Entering Outside Services Information, page 4-79.
To open the Supplier Item Catalog:
•
With the cursor in a requisition line row, select the Catalog button to open the
Supplier Item Catalog. See: Overview of the Supplier Item Catalog, page 5-5.
To enter requisition distributions:
•
Select the Distributions button to open the Distributions window. See: Entering
Requisition Distributions, page 3-57.
To view tax information:
•
After you have entered and saved all tax related information: Select Manage Tax
from the Tools menu to see recoverable and nonrecoverable tax details for each line
and distribution. See: Viewing Tax Information, page 4-116
To approve requisitions:
•
Select the Approval button to open the Approve Documents window. See:
Submitting a Document for Approval, page 2-32
Requisitions 3-55
To check funds:
•
Select Check Funds on the Tools menu. See: Reserving Funds for Requisitions, page
3-8
To release reserved funds:
•
If budgetary controls are enabled, select Unreserve on the Tools menu. See: To
Unreserve Funds, page 3-49.
To enter requisition preferences:
•
Select Preferences on the Tools menu to open the Requisition Preferences window.
See: Entering Requisition Preferences, page 3-44.
Entering OPM line information:
1.
Note: Both Source and Destination organizations should be either
process enabled or not process enabled.
If the OPM item is dual UOM controlled, then the Secondary UOM defaults to the
value specified in the inventory item master table. You cannot change this field.
Depending on the selected dual UOM indicator, the Secondary Quantity is
calculated.
2.
•
Non-dual: The secondary quantity is disabled.
•
Fixed: The secondary quantity is calculated using the conversion routine. You
can change the secondary quantity and the primary Order Quantity is updated
to reflect the change.
•
Default: The secondary quantity is calculated using the conversion routine. You
can change the secondary quantity within the deviation limits specified in the
item definition in OPM. The Primary Order Quantity is not updated to reflect
the change.
•
No default: The secondary quantity is not calculated but you can enter the
secondary quantity within the deviation limits specified in the item definition.
The primary Order Quantity is not updated to reflect the change.
If the OPM item is grade controlled, then the Grade field is enabled and you can
enter the grade. Grade represents the requested quality control grade for the
selected item.
Note: All process items are flagged as Purchasable for use by
Oracle Purchasing when they are synchronized to Oracle
Inventory.
See the Oracle Process Manufacturing Implementation Guide for process item setup
3-56 Oracle Purchasing User's Guide
details.
Related Topics
Overview of Requisitions, page 3-1
Using the Account Generator in Oracle Purchasing, page E-6
Entering Requisition Headers, page 3-48
Changing Encumbered Documents, page 4-112
Entering Requisition Distributions
Use the Distributions window to enter requisition distributions or to view distributions
that Purchasing has automatically created for you. You can charge the cost of this
requisition line to multiple Accounting Flexfields or update the default values you
provided in the Requisition Preferences window. Note that if the line source type is
Inventory, you cannot approve the requisition if you enter more than one distribution
line.
To enter requisition distributions:
1.
Navigate to the Distributions window by selecting the Distributions button in the
Requisitions window. You begin in the Accounts tabbed region.
2.
Enter the Quantity (Amount, if using Oracle Services Procurement) you want to
distribute. The quantity must be in decimal format. Purchasing displays the
quantity you have not yet assigned to an Accounting Flexfield. Multiple
distribution quantities must total to the requisition line quantity.
Using decimal quantities in this field, you can easily distribute costs across
distributions using percentages. For instance, you can have a simple quantity of one
Requisitions 3-57
(1) on your requisition line. If you want to charge one Accounting Flexfield for 30%
of the cost of the item and another Accounting Flexfield for 70% of the cost of the
item, simply enter .3 and .7 as the respective quantities for the requisition
distribution lines.
If you have a quantity different from one (1), you can use the Calculator to perform
the arithmetic, as illustrated by the following example:
3.
•
Your requisition line quantity is 5000
•
You want to charge 35% of the cost to a first Accounting Flexfield
•
You want to charge 65% of the cost to a second Accounting Flexfield
•
Simply enter (5000x35)/100 = 1750 as the quantity for the first requisition
distribution and (5000x65)/100 = 3250 as the quantity for the second requisition
distribution.
When you enter a Charge Account, Purchasing uses the Account Generator to
automatically create the following accounts for each distribution:
•
Accrual: the AP accrual account
•
Variance: the invoice price variance account
•
If you are using encumbrance control, Purchasing also creates the following
account for each distribution:
Budget: the encumbrance budget account
The Account Generator creates these accounts based on predefined rules. See: Using
the Account Generator in Oracle Purchasing, page E-6.
With one exception, you cannot create or update these accounts manually. If the
requisition line destination type is Expense, however, you can change the default
charge account supplied by the Account Generator.
4.
Override the tax Recovery Rate for taxable items.
The recovery rate is the percentage of tax that your business can reclaim for credit.
The recovery rate is based on the line in the Requisitions window and the setup in
Oracle E-Business Tax .
You can change the recovery rate if the profile option eBTax: Allow Override of
Recovery Rate is set to Yes. Depending on the setup in Oracle E-Business Tax, only
certain recovery rates may be allowed.
You can choose to use a different recovery rate for different distributions, even if
they use the same set of applicable tax.
For an overview of tax in Purchasing, see: Tax Information in Purchasing, page 4-
3-58 Oracle Purchasing User's Guide
.
5.
Enter the GL Date that you want to use when you reserve funds. You can enter a
GL Date only if you set up your financials options to use encumbrance for
requisitions. The Reserved check box indicates whether funds have been reserved.
The default is the current date. See: About Financials Options, Oracle Payables User's
Guide.
If you enter a date that belongs to two separate accounting periods, Purchasing
creates a journal entry in the first accounting period that contains this date. See:
Controlling Purchasing Periods, page 1-80.
To view tax information:
•
After you have saved the document: Select Manage Tax from the Tools menu to see
the recoverable and nonrecoverable tax for each line and distribution. See: Viewing
Tax Information, page 4-116.
To release reserved funds:
•
If budgetary controls are enabled, select Unresrve on the Tools menu. See: To
unreserve funds, page 3-49.
Project tabbed region:
•
If your organization has implemented products dependant on project tracking
information, you will see a Project Information tabbed region. Enter the required
information. For instructions, see: Project Tab, page 3-46.
Related Topics
Budgetary Control and Online Funds Checking, Oracle General Ledger User's Guide
Entering Requisition Lines, page 3-50
Changing Encumbered Documents, page 4-112
Using Requisition Templates
From the Requisitions window, use the Supplier Item Catalog window and Requisition
Templates to create requisitions more easily.
To use requisition templates to enter requisitions:
1.
Navigate to the Requisitions window by selecting Requisitions from the menu.
2.
Enter requisition header information. See: Entering Requisition Headers, page 3-48.
3.
Navigate to the Items tabbed region. See: Entering Requisition Lines, page 3-50
4.
Select Catalog to open the Search Supplier Item Catalog window. See: Finding
Supplier Items, page 5-9.
Requisitions 3-59
5.
Select the desired Requisition Template from the list of values. See: Defining
Requisition Templates, page 1-45.
6.
Choose the Find button to open the Supplier Item Catalog window and display the
template lines.
7.
Copy the desired lines to the Order Pad. See: Using the Supplier Item Catalog
Tabbed Regions, page 5-13.
8.
Choose the Select button to close the Supplier Item Catalog window and transfer
the order pad lines to the requisition.
9.
Save your work.
Related Topics
Overview of the Supplier Item Catalog, page 5-5
3-60 Oracle Purchasing User's Guide
4
Purchase Orders
Overview of Purchase Orders
Purchasing provides the Purchase Orders window that you can use to enter standard
and planned purchase orders as well as blanket and contract purchase agreements. You
must be defined as a buyer to use this window. See: Entering Purchase Order Headers,
page 4-40. See: Defining Buyers, page 1-19.
To create purchasing documents more quickly, use the AutoCreate Documents
window. See: Autocreate Documents Overview, page 6-1.
Purchasing provides you the features you need to satisfy the following purchasing
needs. You should be able to:
•
Review all of your purchases with your suppliers to negotiate better discounts
•
Create purchase orders simply by entering a supplier and item details
•
Create standard purchase orders and blanket releases from both on-line and paper
requisitions
•
Quickly and effectively manage procurement in a global business environment
using global agreements that can be shared across the entire enterprise
•
Create accurate and detailed accounting information so that you charge purchases
to the appropriate departments
•
Check your funds availability while creating purchase orders
•
Review the status and history of your purchase orders at any time for all the
information you need
•
Communicate purchase orders to suppliers flexibly using a number of options
Purchase Orders 4-1
•
Inform your suppliers of your shipment schedule requirements
•
Record supplier acceptances of your purchase orders. You always know whether
your suppliers have received and accepted your purchase order terms and
conditions
•
Create your purchase orders by providing a quantity and price for each item you
are ordering. Alternatively, you should also be able to create your purchase order
simply by providing an amount if you are ordering a service that you cannot break
down by price and quantity
•
Create purchase orders that leverage flexible pricing structures or implement
complex pricing from Oracle Advanced Pricing
•
Copy purchase orders. See: Copying Purchase Orders, page 4-98.
Purchase Order Types
Purchasing provides the following purchase order types: Standard Purchase Order,
Planned Purchase Order, Blanket Purchase Agreement, and Contract Purchase
Agreement. You can use the Document Name field in the Document Types window to
change the names of these documents. For example, if you enter Regular Purchase
Order in the Document Name field for the Standard Purchase Order type, your choices
in the Type field in the Purchase Orders window will be Regular Purchase Order,
Planned Purchase Order, Blanket Purchase Agreement, and Contract Purchase
Agreement.
Standard Purchase Orders
You generally create standard purchase orders for one-time purchase of various items.
You create standard purchase orders when you know the details of the goods or
services you require, estimated costs, quantities, delivery schedules, and accounting
distributions. If you use encumbrance accounting, the purchase order may be
encumbered since the required information is known.
Blanket Purchase Agreements
You create blanket purchase agreements when you know the detail of the goods or
services you plan to buy from a specific supplier in a period, but you do not yet know
the detail of your delivery schedules. You can use blanket purchase agreements to
specify negotiated prices for your items before actually purchasing them. Blanket
purchase agreements can be created for a single organization or to be shared by
different business units of your organization (global agreements). You can encumber
funds for a blanket purchase agreement.
4-2 Oracle Purchasing User's Guide
Global Blanket Agreements
You may need to negotiate based on an enterprises' total global purchase volume to
enable centralizing the buying activity across a broad and sometimes diverse set of
businesses. Using global agreements (a special type of blanket purchase agreement),
buyers can negotiate enterprise-wide pricing, business by business, then execute and
manage those agreements in one central shared environment. Enterprise organizations
can then access the agreement to create purchase orders that leverage pre-negotiated
prices and terms. You can encumber funds for a global agreement.
Blanket Releases
You can issue a blanket release against a blanket purchase agreement to place the actual
order (as long as the release is within the blanket agreement effectivity dates). If you use
encumbrance accounting, you can encumber each release.
Contract Purchase Agreements
You create contract purchase agreements with your suppliers to agree on specific terms
and conditions without indicating the goods and services that you will be purchasing.
You can later issue standard purchase orders referencing your contracts, and you can
encumber these purchase orders if you use encumbrance accounting.
Global Contract Agreements
You can use global contract agreeements (a special type of contract purchase
agreement) to centralize a supplier relationship. Buyers throughout the enterprise can
then leverage this relationship by referencing this global contract agreement in your
standard purchase orders.
Planned Purchase Orders
A planned purchase order is a long-term agreement committing to buy items or services
from a single source. You must specify tentative delivery schedules and all details for
goods or services that you want to buy, including charge account, quantities, and
estimated cost.
Scheduled Releases
You can issue scheduled releases against a planned purchase order to place the actual
orders. If you use encumbrance accounting, you can use the planned purchase order to
reserve funds for long term agreements. You can also change the accounting
distributions on each release and the system will reverse the encumbrance for the
planned purchase order and create a new encumbrance for the release.
Purchase Order Types Summary
Purchase Orders 4-3
Standard
Purchase Order
Planned
Purchase Order
Blanket
Purchase
Agreement
Contract
Purchase
Agreement
Terms and
Conditions
Known
Yes
Yes
Yes
Yes
Goods or
Services Known
Yes
Yes
Yes
No
Pricing Known
Yes
Yes
Maybe
No
Quantity Known
Yes
Yes
No
No
Account
Distributions
Known
Yes
Yes
No
No
Delivery
Schedule Known
Yes
Maybe
No
No
Can Be
Encumbered
Yes
Yes
Yes
No
Can Encumber
Releases
N/A
Yes
Yes
N/A
Purchase Order Features
AutoCreate
AutoCreate lets you compose a purchase order or a release from on-line requisitions in
a few keystrokes. See: Autocreate Documents Overview, page 6-1.
Workflow for Automatic Purchase Order and Release Creation
Purchasing uses Oracle Workflow technology to create purchase orders and releases
automatically from approved requisition lines. Purchase orders and releases are created
automatically only if the approved requisition lines are valid (for example, they contain
valid source document information) and if the "Is Automatic Creation Allowed?"
attribute in the Oracle Workflow Builder is set to 'Y' for Yes. (It is set to 'Y' by default.)
See: Workflow for Creating Purchase Orders or Releases, page E-161. See: Choosing
Workflow Options, page 1-83. See also: Automatic Release Generation, page 4-95.
4-4 Oracle Purchasing User's Guide
Accurate Accounting
You supply accounting information as part of your purchase order. You can allocate
order line quantities and costs to cost centers, projects, or departments.
On-line Funds Availability Checking
You can determine whether you have enough funds available in your budget before
you complete a purchase order. You can check funds at the purchase order header,
lines, shipments, distributions, and release levels. You can also check whether funds are
available before you approve your purchase order. You can even set up your system
setup options to prevent a buyer from approving a purchase order until sufficient funds
are available.
To use on-line funds checking, you need to implement budgetary controls. You can
check funds at the detail or summary level. You can also choose to check your funds for
each period, quarter, or year. See: Budgetary Control and Online Funds Checking,
Oracle General Ledger User's Guide
You can also unreserve funds that have been previously reserved. This can be done
from the Tools menu in the document entry windows or the Approval window. Note
that the GL date defaulted depends on the profile PO: Use Document GL Date to
Unreserve.
Revising Purchase Orders
To change a standard or planned purchase order, simply query this purchase order and
enter your changes. You can provide additional paper requisition information to a
standard purchase order. You can also revise blanket or contract purchase agreements.
When you make changes to a purchase order or release, Purchasing's change order
workflow processes determine whether or not the changes require reapproval and, if so,
route the document for the necessary reapprovals. See: Workflow Processes for
Approving Change Orders, page E-133.
To add on-line requisition lines to an existing standard purchase order or release, use
AutoCreate. You can add requisition lines as a new purchase order line or add to an
existing purchase order line. See: Autocreate Document Options, page 6-3.
When you change a purchase order, Purchasing automatically increments the revision
number. See: Document Revision Rules, page 4-103.
Shipment Schedules
You can create purchase order lines that have an unlimited number of ship-to locations
and delivery dates. Each shipment line has a Ship-To Organization and Location,
Promise-By Date, Need-By Date, and Last Accept Date. You receive goods and services
against each shipment line.
Purchase Orders 4-5
Acceptances
You can enter purchase order acceptances to verify that your suppliers have agreed to
and accepted the details on the purchase orders you send to them. See: Entering
Purchase Order Acceptances, page 4-81.
Line Types
Purchasing uses Line Types to distinguish between items you order by quantity and
price, and services that you order by amount. Line Types also serve to identify outside
processing services for which Work in Process creates requisitions. See: Defining Line
Types, page 1-61.
Flexible Pricing
Prices can be manually entered or default into purchase orders from the item setup in
Oracle Inventory, pricing information in a referenced purchase blanket agreement, or
from more complex pricing rules set up in Oracle Advanced Pricing. To price a
purchase order based on pricing rules setup in Oracle Advanced Pricing, its line need
simply reference a contract purchase agreement. See: Oracle Advanced Pricing User's
Guide.
In addition, purchase orders that reference blanket purchase agreements can have their
prices automatically update through the Retroactive Price feature. See: Retroactive Price
Process, page 12-31.
Approving Purchase Orders
Purchasing checks purchase orders for accuracy and completeness before you
communicate them to the supplier. You can submit purchase orders to the approval
process from the Purchase Orders window before you communicate them. Also, you
can use the Notifications Summary window to submit purchase orders for approval.
See: Submitting a Document for Approval, page 2-32. See: Viewing and Responding to
Notifications, page 2-29.
You can also assign an authorization limit to each buyer and decide whether you want
to enforce this limit whenever any buyer approves a purchase order. See: Overview of
Purchasing Options, page 1-32. See: Defining Buyers, page 1-19.
If you have implemented global supervisors (approvers), your purchase orders can be
approved by any authorized approver within your global organization. See: Center-Led
Procurement Setup, page 1-78.
Communicating Purchase Orders to Suppliers
You can communicate purchase orders to the supplier at the time you approve them.
(See: Submitting a Document for Approval, page 2-32.) Oracle Purchasing supports
many communication methods depending on how your system is configured. These
are:
4-6 Oracle Purchasing User's Guide
•
Print (paper or Adobe® PDF)
•
Facsimile (fax)
•
E-mail (HTML or Adobe® PDF)
•
Extensible Markup Language (XML)
•
Electronic Data Interchange (EDI)
•
Online viewing (browser or Adobe® PDF)
You can also print purchase orders, change orders, and RFQs in other languages, if you
use Multilingual Support (MLS). See: Printed Purchase Order Overview, page 8-3.
Copying Purchase Orders
You can copy one purchase order to another. For example, if you want to renew a
blanket purchase agreement with hundreds of lines, you can copy the previous
agreement to a new document and change the effectivity dates. You can copy the
following purchase order types:
•
Standard purchase orders
•
Blanket purchase agreements
•
Planned purchase orders
•
Global blanket agreements
•
Global contract agreements
See: Copying Purchase Orders, page 4-98.
Cancelling Purchase Orders
Purchasing lets you cancel a purchase order or purchase order line after you have
approved it. When you cancel a purchase order or purchase order line, you pay only for
those goods you received before cancellation, and you can optionally reassign any
unfilled requisitions to another purchase order. See: Controlling Documents, page 2-57.
If you are using encumbrance or budgetary control and if you choose to cancel
referencing requisitions, Purchasing creates negative debit entries in your general
ledger system to cancel the encumbrance associated with the purchase order.
Purchasing recreates encumbrances for the lines you used to create the purchase order,
using the distributions from your cancelled purchase order. See: Budgetary Control and
Online Funds Checking, Oracle General Ledger User's Guide.
Purchase Orders 4-7
Closing and Final Closing Purchase Orders
Purchasing lets you automatically close a purchase order once you have received and
paid for all items you ordered. This feature lets you conce
ntrate on those purchase orders that are overdue or partially received. You can also
manually close purchase orders at any time. Of course, you always have the option to
review or reopen a purchase order by adding new lines or creating additional receipt
transactions until the purchase order is final closed. See: Controlling Documents, page
2-57.
If you designate an invoice as the final match to a purchase order, Payables final closes
the purchase order shipment during Approval. You cannot update the status of a
final-closed purchase order. See: Approval, Oracle Payables User's Guide.
If you are using encumbrance or budgetary control and if you choose to cancel
referencing documents, Purchasing automatically creates credit entries in your general
ledger system to reverse the encumbrance that corresponds to the purchase order you
are final closing. See: Budgetary Control and Online Funds Checking, Oracle General
Ledger User's Guide.
Close for Receiving and Close for Invoicing
Purchasing automatically closes shipments for receiving and invoicing based on
controls that you specify in the Purchasing Options window. Once all shipments for a
given line are closed, Purchasing automatically closes the line. When all lines for a given
header are closed, Purchasing automatically closes the document.
You can specify closing controls including: Receipt Close Tolerance, Receipt Close
Point, and Invoice Close Tolerance. See: Defining Purchasing Options, page 1-32.
Note: The Close for Invoicing status does not prevent you from
matching an invoice to a purchase order or a receipt.
Holding and Freezing Purchase Orders
Purchasing lets you freeze a purchase order so that you can prevent changes or
additions to it, but still receive and pay for goods already ordered. You can easily
control your purchase order changes because you can freeze or unfreeze a purchase
order when appropriate. Likewise, you can place a purchase order on hold to prevent
all actions until you remove the order from hold. See: Controlling Documents, page 2-57
.
Notification Controls (Using Oracle Alert)
For planned purchase orders, blanket purchase agreements, and contracts, you can
establish expiration and release control notification conditions and specify the number
of days before the condition is met that you want to be notified. In the Notification
4-8 Oracle Purchasing User's Guide
Controls window, accessible through the Purchase Orders window, you can specify the
following notification conditions:
•
Amount released by date
•
Amount not released by date
•
Amount not released
•
Amount released
•
Expiration date
When the notification conditions are met, Purchasing sends you an Alert (or email) so
that you can take appropriate action. See: Entering Purchase Order Notification
Controls, page 4-80. See: Using Oracle Alert in Oracle Purchasing, page B-1.
Quick Access to Particular Purchase Orders
You can place purchase orders that you reference frequently in the Oracle Applications
Navigator. Placing documents in the Navigator is useful when you need to query large
documents with multiple lines, shipments, or distributions. When the purchase order is
open, choose Place on Navigator from the File menu. When you choose the Documents
tabbed region in the Navigator, you can then access that document directly from within
the Navigator. You can also do this with requisitions. See: Using the Navigator's
Documents Region, Oracle Applications User's Guide.
Note: Once you place a document in the Navigator, it is the first thing
you see in the Navigator the next time you log into Purchasing. Choose
Functions to return to the Purchasing menu.
Viewing Changes to Purchase Orders
You can view at a glance all past revisions made to archived purchase orders through
the PO Change History menu item in the Oracle Purchasing Navigator. See: Viewing
Purchase Order Changes, page 10-3.
Supplier Negotiation and Renegotiation using Oracle Sourcing
If you have Oracle Sourcing enabled, you can initiate supplier negotiations directly
from AutoCreate or initiate renegotiations with a supplier from the Purchase Order or
Purchase Order Summary windows.
Contract Terms Management Using Oracle Procurement Contracts
Oracle Procurement Contracts provides contract terms management capabilities for
procurement professionals. Using a contract terms library, deliverables tracking, and
formal change management, it extends Oracle Purchasing by offering embedded
Purchase Orders 4-9
contract negotiation, contract terms authoring, contract administration, and electronic
contract signature capabilities.
If you license and implement Oracle Procurement Contracts, the following features are
available in Oracle Purchasing:
•
From the Purchase Order Terms window, you can author and manage contract
terms, manage contract documents, view contract clauses and deliverables, and
update deliverable statuses.
•
The Purchase Order Summary window enables viewing purchase orders with
details of contract terms clauses and deliverables as well as a supplier formatted
purchase order with clauses, deliverables, and amendments.
•
From the main menu, you can manage all of the contract deliverables assigned to
you.
•
The PO Change History window provides easy access to amendments to clauses,
sections, deliverables, and changes to purchase order attributes.
Purchase Order Defaulting Rules
Purchasing uses a comprehensive defaulting mechanism to provide most required
purchase order information and minimize document creation time. For example, when
you are entering a standard purchase order and you want only one shipment and
distribution for each purchase order line, you do not need to navigate beyond the Lines
tabbed region unless you want to change the default information in the shipments and
distributions that Purchasing automatically creates.
Note that the Account Generator may be unable to build accounts for a number of
reasons related to defaults. For example, if you have entered a one-time item and there
is no default account for your user or category. In this case, you must enter distributions
in the Distributions window.
Purchase Order Default Matrix Conventions
The Purchase Order Default Matrix uses the following conventions:
•
"Default" in this context means that Purchasing provides this information for you. It
does not mean that you can always change the defaulted information.
•
When options are listed as 1-2-3, Purchasing looks first for the option specified as 3.
If new information is provided, or if information is not available in this source,
Purchasing uses the next source. For example, when defaulting the currency to a
standard purchase order header, Purchasing first provides the currency specified in
the Financials Options window. When you specify a supplier, Purchasing updates
the currency based on the supplier's default currency. Finally, when you specify a
4-10 Oracle Purchasing User's Guide
supplier site, Purchasing updates the currency accordingly.
•
For Releases, "Source Agreement" refers to Blanket Purchase Agreements or
Planned Purchase Orders, as appropriate.
•
The Last Acceptance Date is calculated using the Promised Date if available.
Otherwise, Purchasing uses the Need-By date.
•
Purchasing provides a GL Date only if you are using encumbrance.
•
The following abbreviations are used in the matrix:
•
OSP Outside Processing
•
PO Opt Purchasing Options
Purchase Order Header Defaulting Rules
Header
Information
Standard
Planned
Blanket
Contract
Release
Purchase
Order Type
Value =
"Standard"
Buyer
User name
(must be
buyer)
User name
(must be
buyer)
User name
(must be
buyer)
User name
(must be
buyer)
User name
(must be
buyer)
Currency - 1
Primary
Ledger
Primary
Ledger
Primary
Ledger
Primary
Ledger
Source
Agreement
(not
changeable)
Currency - 2
Supplier
Supplier
Supplier
Supplier
Currency - 3
Supplier Site
Supplier Site
Supplier Site
Supplier Site
Supplier
Value =
"Blanket"
Source
Agreement
(not
changeable)
Purchase Orders 4-11
Header
Information
Standard
Planned
Blanket
Contract
Release
Supplier Site
From
supplier if
only 1 "
Purchasing"
site exists
From
supplier if
only 1 "
Purchasing"
site exists
From
supplier if
only 1 "
Purchasing"
site exists
From
supplier if
only 1 "
Purchasing"
site exists
Source
Agreement
(not
changeable)
Supplier
Contact
From site if
only 1
contact exists
From site if
only 1
contact exists
From site if
only 1
contact exists
From site if
only 1
contact exists
Confirm
Order
Value = "No"
Value = "No"
Value = "No"
Value = "No"
Ship To
Location - 1
Financials
Options
Financials
Options
Financials
Options
Financials
Options
Ship To - 2
Supplier
Supplier
Supplier
Supplier
Ship To - 3
Supplier Site
Supplier Site
Supplier Site
Supplier Site
Bill To
Location - 1
Financials
Options
Financials
Options
Financials
Options
Financials
Options
Bill To - 2
Supplier
Supplier
Supplier
Supplier
Bill To - 3
Supplier Site
Supplier Site
Supplier Site
Supplier Site
Financials
Options
Financials
Options
Financials
Options
Financials
Options
Pay Terms- 2
Supplier
Supplier
Supplier
Supplier
Pay Terms- 3
Supplier Site
Supplier Site
Supplier Site
Supplier Site
Payment
Terms - 1
4-12 Oracle Purchasing User's Guide
Source
Agreement
(not
changeable)
Source
Agreement
(not
changeable)
Source
Agreement
(not
changeable)
Header
Information
Standard
Freight
Terms - 1
Planned
Blanket
Contract
Release
Financials
Options
Financials
Options
Financials
Options
Financials
Options
Frt Terms - 2
Supplier
Supplier
Supplier
Supplier
Frt Terms - 3
Supplier Site
Supplier Site
Supplier Site
Supplier Site
Ship Via - 1
Financials
Options
Financials
Options
Financials
Options
Financials
Options
Ship Via - 2
Supplier
Supplier
Supplier
Supplier
Ship Via - 3
Supplier Site
Supplier Site
Supplier Site
Supplier Site
Financials
Options
Financials
Options
Financials
Options
Financials
Options
FOB - 2
Supplier
Supplier
Supplier
Supplier
FOB - 3
Supplier Site
Supplier Site
Supplier Site
Supplier Site
Rate Type
Purchasing
Options
Purchasing
Options
Purchasing
Options
Purchasing
Options
FOB - 1
Source
Agreement
(not
changeable)
Source
Agreement
(not
changeable)
Source
Agreement
(not
changeable)
Source
Agreement
(not
changeable)
Effective
Date
Source
Agreement
(not
changeable)
Expiration
Date
Source
Agreement
(not
changeable)
Purchase Orders 4-13
Header
Information
Standard
Planned
Blanket
Contract
Release
Minimum
Release
Amount
Purchasing
Options
Purchasing
Options
Notification
Control
Expiration
Date
Terms and
conditions
expiration
date
Terms and
conditions
expiration
date
Terms and
conditions
expiration
date
Value = "
None"
Value = "
None"
Value = "
None"
Value = "
None"
Acceptance
Required
Value = "
None"
Transportati
on
Arrainged 1
Source
Agreement
Source
Agreement
Source
Agreement
Source
Agreement
Transportati
on
Arrainged- 2
Supplier Site
Supplier Site
Supplier Site
Source
Agreement
Release
Number
Existing
number + 1
Release Date
Today's date
Purchase Order Line Defaulting Rules
Line
Information
Line Type
Category - 1
Standard
Blanket
Contract
Release
Purchasing
Options
Purchasing
Options
Purchasing
Options
Line Type
Line Type
Line Type
Item
Item
Item
Line Type
Line Type
Line Type
Category - 2
UOM - 1
Planned
4-14 Oracle Purchasing User's Guide
Line
Information
Standard
Planned
UOM - 2
Item
Item
Unit Price - 1
Line Type
Unit Price - 2
Contract
Release
Item
Line Type
Line Type
List Price
List Price
List Price
Unit Price - 3
Source
document
specified in
Supplier-Item
Attributes
window
Source
document
specified in
Supplier-Item
Attributes
window
Source
document
specified in
Supplier-Item
Attributes
window
UN Number
Item
Item
Item
Hazard Class
Item
Item
Item
OSP UOM
Type
Item
Item
Item
List Price
Item
Item
Item
Market Price
Item
Item
Item
Price Type
PO
Preferences
PO
Preferences
PO
Preferences
Value = "No"
Value = "No"
Allow Price
Override
Blanket
Promised
Date
PO
Preferences
PO
Preferences
PO
Preferences
Source
Agreement
(not
changeable)
Need-By
Date
PO
Preferences
PO
Preferences
PO
Preferences
Source
Agreement
(not
changeable)
Purchase Orders 4-15
Line
Information
Standard
Transaction
Nature
Price Break
Type
Planned
PO
Preferences
Blanket
PO
Preferences
Contract
Release
PO
Preferences
PO
Preferences
Purchase Order Shipment Defaulting Rules
Shipment
Information
Standard
Planned
Blanket
Contract
Release
Ship-To
Organization
-1
Financial
System
Options
(blanket
releases only)
Ship-To Org 2
Financial
System
Options
Financial
System
Options
Agreement
Header's
Ship-To
locations
organization
Source
Agreement
(not
changeable)
(blanket
releases only)
Ship-To Org 3
PO
Preferences Validated
against item
PO
Preferences Validated
against item
Agreement
Header's
Ship-To
locations
organization
PO
Preferences Validated
against item
(blanket
releases only)
Ship-To
Location
PO
Preferences Validated
against
validated
organization
PO
Preferences Validated
against
validated
organization
Agreement
Header
Source
Agreement
(not
changeable)
Lines
Lines
Lines
Lines
Promised
Date - 1
4-16 Oracle Purchasing User's Guide
Shipment
Information
Standard
Planned
Blanket
Contract
Release
Promised
Date - 2
PO
Preferences
PO
Preferences
PO
Preferences
PO
Preferences
Need-By Dat
e-1
Lines
Lines
Lines
Lines
Need-By
Date - 2
PO
Preferences
PO
Preferences
PO
Preferences
PO
Preferences
Receipt
Close
Tolerance - 1
Purchasing
Options
Purchasing
Options
Purchasing
Options
Receipt Close
-2
Line Type
Line Type
Line Type
Receipt Close
-3
Item
Item
Item
Invoice Close
Tolerance - 1
Purchasing
Options
Purchasing
Options
Purchasing
Options
Invoice Close
-2
Item
Item
Item
Invoice
Matching (2,
3, 4 Way) - 1
Purchasing
Options
Purchasing
Options
Purchasing
Options
Invoice
Match - 2
Supplier
Supplier
Supplier
Invoice
Match - 3
Line Type
Line Type
Line Type
Invoice
Match - 4
Item
(Validation
Org)
Item
(Validation
Org)
Item
(Validation
Org)
Invoice
Match - 5
Item (Ship-To
Org)
Item (Ship-To
Org)
Item (Ship-To
Org)
Purchase Orders 4-17
Shipment
Information
Standard
Planned
Blanket
Contract
Release
Accrue on
Receipt - 1
Else = Receipt
Required
Value
Else = Receipt
Required
Value
Else = Receipt
Required
Value
Accrue on Rct
-2
No, if
Consigned
Flag is
checked
Accrue on Rct
-3
No, if PO Opt
expense
accrual is "
Period End"
No, if PO Opt
expense
accrual is "
Period End"
No, if PO Opt
expense
accrual is "
Period End"
Accrue on Rct
-4
Yes, if item is
stockable in
ship-to
organization
Yes, if item is
stockable in
ship-to
organization
Yes, if item is
stockable in
ship-to
organization
Accrue on Rct
-5
Yes, if line
type is OSP
Yes, if line
type is OSP
Yes, if line
type is OSP
Enforce
Ship-To
Location - 1
Receiving
Options
Receiving
Options
Receiving
Options
Enforce
Ship-To - 2
Supplier
Supplier
Supplier
Enforce
Ship-To - 3
Item
Item
Item
Receiving
Options
Receiving
Options
Receiving
Options
Substitute Rct
-2
Supplier
Supplier
Supplier
Substitute Rct
-3
Item
Item
Item
Allow
Substitute
Receipts - 1
4-18 Oracle Purchasing User's Guide
Shipment
Information
Standard
Planned
Blanket
Contract
Release
Receiving
Options
Receiving
Options
Receiving
Options
Receipt
Routing - 2
Supplier
Supplier
Supplier
Receipt
Routing - 3
Item
Item
Item
Quantity
Received
Tolerance - 1
Receiving
Options
Receiving
Options
Receiving
Options
Qty Received
-2
Supplier
Supplier
Supplier
Qty Received
-3
Item
Item
Item
Quantity
Received
Exception - 1
Receiving
Options
Receiving
Options
Receiving
Options
Rcvd
Exception - 2
Supplier
Supplier
Supplier
Rcvd
Exception - 3
Item
Item
Item
Days Early
Receipt
Allowed - 1
Receiving
Options
Receiving
Options
Receiving
Options
Days Early
Rct - 2
Supplier
Supplier
Supplier
Days Early
Rct - 3
Item
Item
Item
Receipt
Routing - 1
Purchase Orders 4-19
Shipment
Information
Standard
Planned
Blanket
Contract
Release
Receiving
Options
Receiving
Options
Receiving
Options
Days Late Rct
-2
Supplier
Supplier
Supplier
Days Late Rct
-3
Item
Item
Item
Promised
Date + Days
Late Receipt
Allowed
Promised
Date + Days
Late Receipt
Allowed
Promised
Date + Days
Late Receipt
Allowed
Receipt Date
Exception - 1
Receiving
Options
Receiving
Options
Receiving
Options
Receipt Dte
Exc - 2
Supplier
Supplier
Supplier
Receipt Dte
Exc - 3
Item
Item
Item
Source
Agreement
(not
changeable)
Days Late
Receipt
Allowed - 1
Last Accept
Date
Shipment
Price
Country of
Origin - 1
Supplier Site
Supplier Site
Supplier Site
Cntry of
Origin - 2
Approved
Supplier List
Approved
Supplier List
Approved
Supplier List
(blanket
releases only)
Consigned
Flag
Approved
Supplier List
4-20 Oracle Purchasing User's Guide
Purchase Order Distribution Defaulting Rules
Distribution
Information
Standard
Planned
Blanket
Contract
Release
Destination
Type - 1
If line type is
OSP = "Shop
Floor"
If line type is
OSP = "Shop
Floor"
If line type is
OSP = "Shop
Floor"
Destination
Type - 2
If item
stockable in
ship-to org. =
"Inventory"
If item
stockable in
ship-to org. =
"Inventory"
If item
stockable in
ship-to org. =
"Inventory"
Destination
Type - 3
If item
stockable in
ship-to org,
and
purchasable
and Accrue
on Receipt is
No ="
Expense"
If item
stockable in
ship-to org,
and
purchasable
and Accrue
on Receipt is
No ="
Expense"
If item
stockable in
ship-to org,
and
purchasable
and Accrue
on Receipt is
No ="
Expense"
Destination
Type - 4
If item is
NOT
stockable = "
Expense"
If item is
NOT
stockable = "
Expense"
If item is
NOT
stockable = "
Expense"
PO
Preferences
PO
Preferences
PO
Preferences if
valid for
ship-to org
and item
PO
Preferences if
valid for
ship-to org
and item
Requestor's
location
Requestor's
location
Requestor's
location
Requestor's
location
PO
Preferences
PO
Preferences
PO
Preferences
Requestor
Deliver-To
Location - 1
Deliver-To
Loc - 2
Project
Details
Purchase Orders 4-21
Distribution
Information
Standard
Planned
Blanket
Contract
Release
Rate Date
PO Header
PO Header
Source
Agreement
(not
changeable)
GL Date
PO
Preferences
PO
Preferences
Today's date
if in valid
period; else
null
Accounts
Account
Generator
Account
Generator
Account
Generator
Recovery
Rate
Tax Code
Tax Code
Tax Code
Requisition
Information 1
PO
Preferences
PO
Preferences
Requisition
Information 2
Source
Requisition
(Online)
Source
Requisition
(Online)
Related Topics
Defining Financials Options, Oracle Payables User's Guide
Suppliers, Oracle iSupplier Portal Implementation Guide.
Site Locations, Oracle HRMS Enterprise and Workforce Management Guide
Using the Account Generator in Oracle Purchasing, page E-6
Defining Purchasing Options, page 1-32
Defining Receiving Options, page 1-41
Profile Options in Purchasing, page C-1
Entering Purchase Order Shipments, page 4-67
Entering Purchase Order Distributions, page 4-75
4-22 Oracle Purchasing User's Guide
Source
Requisition
(Online)
Finding Purchase Orders
Use the Find Purchase Orders window to:
•
Access the Purchase Orders window.
•
Access the Releases window.
•
Perform purchase order inquiries at header, line, shipment, and distribution levels
Depending on the function security assigned to your responsibility, you have varying
levels of access to information. A responsibility defines an application user's current
privileges while working with Oracle Applications.
To enter search criteria:
1. Navigate to the Find Purchase Orders window. Enter desired search criteria as
described in the following steps.
2.
Select the Operating Unit for this search.
3.
Enter the purchase order number. If you enter a purchase order number, you can
also enter a Release, Line, and/or Shipment number for the purchase order.
4.
Select the purchase order Type (Standard purchase order, Blanket purchase
Purchase Orders 4-23
agreement, Planned purchase order, Contract purchase agreement, Blanket Release,
or Scheduled Release). Select the Global Agreement box to find just your global
agreements.
5.
Select the View Releases check box to include all associated releases for blanket
purchase agreements and planned purchase orders. Purchasing automatically
selects this check box if you specify selection criteria for which it would be required
(for example, if you select Scheduled Releases as the purchase order Type). This
check box is not available when inappropriate (for example, if you select Standard
PO as the purchase order Type).
6.
Enter the Currency.
7.
Enter the Supplier. If you enter a supplier, you can also enter a supplier Site.
8.
Enter the Ship To Organization.
9.
Check Show External Locations to include locations not associated with this
organization.
10. Enter the Bill To location.
11. Enter the Line Type.
12. Enter the Ship To location.
13. Enter the Buyer.
14. Enter the document Line number.
15. Check View Releases to include releases with the related blanket purchase
agreement.
16. Enter the document Shipment number.
17. Check Consumption Advice to limit your results to purchase orders or releases
which are created by the transfer of ownership of consigned stock in Oracle
Inventory
18. Check Global Agreement to limit your results to global agreements that were either
created in your operating unit or enabled for use in your operating unit.
19. If Oracle Procurement Contracts is implemented, select With Contract Terms to
limit your results to purchase orders with contract terms.
20. Use the tabbed regions to further restrict the search:
•
In the Line region, you can enter the following search criteria: Item number,
4-24 Oracle Purchasing User's Guide
Revision number, Job (Oracle Services Procurement), Category, item
Description, Supplier Item Number, VMI (Yes or No), and Consigned (Yes or
No).
•
In the Date Ranges region, you can enter date ranges for the following dates:
Order, Approved, Promised, Need By, and Closed.
•
In the Status region, you can limit the search by:
•
Order Approval status (Approved, In Process, Incomplete, Pre-Approved,
Rejected, or Requires Reapproval)
•
Control status (Open, Closed, Finally Closed, Closed for Invoicing, Closed
for Receiving, or Cancelled)
•
Hold status (Yes or No)
•
Frozen status (Yes or No)
•
Firmed status (Yes or No)
•
In the Related Documents region, you can limit the search by Contract number,
Receipt number, Invoice number, Requisition number, Paper Requisition
number, Supplier Quote number, and Source Document information (Type,
Number, Line).
•
In the Deliver To region, you can limit the search by destination Type (Expense,
Inventory, Shop Floor), Deliver To Person, Organization, Location, and
Subinventory.
•
In the Accounting region, you can limit the search by Period, GL Date, Charge
Account, Budget Account, and whether there are Active Encumbrances (Yes or
No).
•
In the Projects region, you can limit the search by Project or Task number.
21. Select the Results summary window (Headers, Lines, Shipments, or Distributions).
Depending on the search criteria you have specified, all summary windows may
not be available. For example, if you specify criteria in the Accounting region, only
the Purchase Order Distributions summary window is available.
22. Select the Find button to initiate the search and open the appropriate summary
window.
To clear existing search criteria:
•
Select the Clear button to clear any existing search criteria.
Purchase Orders 4-25
To enter a new release:
•
Select the New Release button to open the Releases window. See: Entering Release
Headers, page 4-83.
To enter a new purchase order:
•
Select the New PO button to open the Purchase Orders window. See: Entering
Purchase Order Headers, page 4-40.
To enter purchase order preferences:
•
Select Preferences on the Tools menu to open the Purchase Order Preferences
window. See: Entering Purchase Order Preferences, page 4-37.
Related Topics
Function Security for Purchasing, page D-1
Overview of Purchase Orders, page 4-1
Using the Purchase Order Headers Summary Window, page 4-26
Using the Purchase Order Lines Summary Window, page 4-30
Using the Purchase Order Shipments Summary Window, page 4-32
Using the Purchase Order Distributions Summary Window, page 4-35
Using the Purchase Order Headers Summary Window
Use the Purchase Order Headers results folder window to:
•
View purchase order header information.
•
Drill down to view purchase order line, shipment, and distribution information.
•
Access the Purchase Orders and Releases windows for entry and update of
documents.
•
Access other windows from the Tools and Inquire menus.
4-26 Oracle Purchasing User's Guide
To navigate to the Purchase Order Headers results window:
•
In the Find Purchase Orders window, select Headers in the Results region and
select the Find button to open the Purchase Order Headers folder window.
To drill down to view purchase order line information:
•
Select the Lines button to drill down to the Purchase Order Lines results folder
window. You can also select View Lines on the Tools menu to open this window.
See: Using the Purchase Order Lines Summary Window, page 4-30.
To enter a new release:
•
Select the New Release button to open the Releases window. If the current record is
a blanket purchase agreement or a planned purchase order, then you can create a
release against it.
Important: Depending on how the Function Security is set for your
user responsibility, you may not have access to the New Release
button. (With Function Security, a system administrator can limit
people's access to this function.)
To enter a new purchase order:
•
Select the New PO button to open the Purchase Orders window. See: Entering
Purchase Order Headers, page 4-40.
Important: Depending on how the Function Security is set for your
user responsibility, you may not have access to the New PO button.
(With Function Security, a system administrator can limit people's
access to this function.)
Purchase Orders 4-27
To open the Purchase Orders or Releases window for the current order:
•
Select the Open button to open the Purchase Orders window and query the
purchase order on the current line. If the current order is for a blanket or scheduled
release, Purchasing opens the Releases window and queries the current order. Your
options in this window depend on the status of the order and your approval and
security options. See: Entering Purchase Order Headers, page 4-40
Important: Depending on how the Function Security is set for your
user responsibility, you may not have access to the Open button.
For example the Open button will be enabled for global agreements
only if they were created in your operating unit and if you have
Manage Global Agreements function security. (With Function
Security, a system administrator can limit people's access to this
function.)
Tools Menu Options
To view acceptances:
•
Select Acceptances on the Tools menu to open the Enter Acceptances window. See:
Entering and Viewing Purchase Order Acceptances, page 4-81.
To enter purchase order control information:
•
Select Control on the Tools menu to open the Control Document window. See:
Controlling Documents, page 2-57.
To enter purchase order preferences:
•
Select Preferences on the Tools menu to open the Purchase Order Preferences
window. See: Entering Purchase Order Preferences, page 4-37.
To copy a purchase order:
•
Select the document you want to copy and then select Copy Document from the
Tools menu. See: Copying Purchase Orders, page 4-98.
To renegotiate blanket agreements in Oracle Sourcing:
•
Select the blanket purchase agreement you wish to renegotiate in the Purchase
Order Headers window and then select either Create Auction or Create Sourcing
RFQ from the Tools menu. See the Oracle Sourcing online help for more details.
To respond to supplier changes to a purchase order:
•
If you have selected a purchasing document for which there are pending changes
from the supplier, then select Respond to Changes on the Tools menu.
To see the revision history for a purchase order:
1.
Select Change History from the Tools menu to view the revisions to the archived
purchase order you selected in the Purchase Order Headers window. See: Viewing
Purchase Order Changes., page 10-3
4-28 Oracle Purchasing User's Guide
To communicate the purchase order to the supplier:
1.
Select an approved purchase order and then select Communicate from the Tools
menu.
2.
In the Communicate window select the method that you would like to use to
communicate this purchase order to the supplier.
3.
Enter the Fax number or Email address as needed.
4.
Click OK to send the purchase order.
You can also communicate purchase orders to the supplier at the time you approve
them. See: Submitting a Document for Approval, page 2-32. See: Communicating
Purchase Orders to Suppliers, page 4-6.
Inquire Menu Options
To navigate to the Purchase Order Lines results window:
•
In the Find Purchase Orders window, select Lines in the Results region and select
the Find button to open the Purchase Order Lines folder window. You can also
navigate to this window by selecting View Lines on the Inquire menu in the
Purchase Order Headers results folder window.
To drill down to view purchase order shipment information:
•
Select View Shipments on the Inquire menu to open the Purchase Order Shipments
results folder window. See: Using the Purchase Order Shipments Summary
Window, page 4-32.
To drill down to view purchase order distributions information:
•
Select View Distributions on the Inquire menu to open the Purchase Order
Distributions results folder window. See: Using the Purchase Order Distributions
Summary Window, page 4-35.
To view action history:
•
Select View Action History on the Inquire menu to open the Action History
window. See: Viewing Action History, page 10-1.
To view invoices:
•
Select Invoices on the Inquire menu to view invoice information: See: Invoice
Overview (Payables), Oracle Payables User's Guide.
To view receipts:
•
Select View Receipts on the Inquire menu to open the Find Receiving Transactions
window. See: Finding Receiving Transactions (Summary), page 9-41.
To view requisitions:
•
Select View Requisitions on the Inquire menu to open the Requisition Summary
window. See: Using the Requisition Headers Summary Window, page 3-39.
Purchase Orders 4-29
To view approval status in Workflow:
•
Select View Approval through Workflow on the Inquire menu to open the
Workflow approval process view window.
To view project contract information:
•
If Oracle Project Contracts is implemented, you can select View Project Contract
Information on the Inquire menu to open the Project Information window.
To view contract terms:
•
If Oracle Procurement Contracts is implemented, you can select View Contract
Terms on the Inquire menu to open the Contract Terms window.
To view the formatted purchase order:
•
Select View Document on the Inquire menu to see the purchase order in the format
that will be communicated to the supplier. You can also view the purchase order in
the supplier site language.
To view procurement card information:
•
In the Purchase Order Headers summary window, which is a folder window,
display the hidden field P-Card Number. See: Procurement Card Purchase Orders
and Releases, page 4-117.
Related Topics
Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide
Overview of Purchase Orders, page 4-1
Finding Purchase Orders, page 4-23
Using the Purchase Order Lines Summary Window, page 4-30
Using the Purchase Order Shipments Summary Window, page 4-32
Using the Purchase Order Distributions Summary Window, page 4-35
Using the Purchase Order Lines Summary Window
Use the Purchase Order Lines results folder window to:
•
View purchase order line information.
•
Drill down to view purchase order shipment and distribution information.
•
Access the Purchase Orders and Releases windows for entry and update of
documents.
•
Access other windows from the Tools and Inquire menus.
4-30 Oracle Purchasing User's Guide
To navigate to the Purchase Order Lines results window:
•
In the Find Purchase Orders window, select Lines in the Results region and select
the Find button to open the Purchase Order Lines folder window. You can also
navigate to this window by selecting View Lines on the Inquire menu in the
Purchase Order Headers results folder window.
To drill down to view purchase order shipment information:
•
Select the Shipments button to drill down to the Purchase Order Shipments results
folder window. You can also select View Shipments on the Inquire menu to open
this window. See: Using the Purchase Order Shipments Summary Window, page 432.
To enter a new release:
•
Select the New Release button to open the Releases window. If the current record is
a blanket purchase agreement or a planned purchase order, then you can create a
release against it.
To enter a new purchase order:
•
Select the New PO button to open the Purchase Orders window. See: Entering
Purchase Order Headers, page 4-40.
To open the Purchase Orders or Releases window for the current line:
•
Select the Open button to open the Purchase Orders window and query the
purchase order on the current line. If the current line is for a blanket or scheduled
release, Purchasing opens the Releases window and queries the current line. Your
options in this window depend on the status of the order and your approval and
security options. See: Entering Purchase Order Headers, page 4-40.
To view acceptances:
•
Select Acceptances on the Tools menu to open the Enter Acceptances window. See:
Entering and Viewing Purchase Order Acceptances, page 4-81.
To enter purchase order control information:
•
Select Control on the Tools menu to open the Control Document window. See:
Controlling Documents, page 2-57.
To enter purchase order preferences:
•
Select Preferences on the Tools menu to open the Purchase Order Preferences
window. See: Entering Purchase Order Preferences, page 4-37.
To communicate the purchase order to the supplier:
•
Select an approved purchase order and then select Communicate from the Tools
menu. In the Communicate window select the method that you would like to use to
communicate this purchase order to the supplier. Enter the Fax number or Email
address as needed. Click OK to send the purchase order. You can also communicate
purchase orders to the supplier at the time you approve them. See: Submitting a
Document for Approval, page 2-32.
Purchase Orders 4-31
To drill down to view purchase order distributions information:
•
Select View Distributions on the Inquire menu to open the Purchase Order
Distributions results folder window. See: Using the Purchase Order Distributions
Summary Window, page 4-35.
To view action history:
•
Select View Action History on the Inquire menu to open the Action History
window. See: Viewing Action History, page 10-1.
To view invoices:
•
Select View Invoices on the Inquire menu to view invoice information: See: Invoice
Overview, Oracle Payables User's Guide.
To view receipts:
•
Select View Receipts on the Inquire menu to open the Find Receiving Transactions
window. See: Finding Receiving Transactions (Summary), page 9-41.
To view Oracle Project Contract information:
•
If Oracle Project Contracts is implemented, you can select View Project Contract
Information on the Inquire menu to open the Projects Information window.
To view approval status in Workflow:
•
Select View Approval through Workflow on the Inquire menu to open the
Workflow approval process view window.
To view contract terms:
•
If Oracle Procurement Contracts is implemented, you can select View Contract
Terms on the Inquire menu to open the Contract Terms window.
To view the formatted purchase order:
•
Select View Document on the Inquire menu to see the purchase order in the format
that will be communicated to the supplier.
Related Topics
Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide
Overview of Purchase Orders, page 4-1
Finding Purchase Orders, page 4-23
Using the Purchase Order Headers Summary Window, page 4-26
Using the Purchase Order Shipments Summary Window, page 4-32
Using the Purchase Order Distributions Summary Window, page 4-35
Using the Purchase Order Shipments Summary Window
Use the Purchase Order Shipments results folder window to:
4-32 Oracle Purchasing User's Guide
•
View purchase order shipment information.
•
Drill down to view purchase order distribution information.
•
Access the Purchase Orders and Releases windows for entry and update of
documents.
•
Access other windows from the Tools and Inquire menus.
Note that this window does not display price breaks.
To navigate to the Purchase Order Shipments results window:
1.
In the Find Purchase Orders window, select Shipments in the Results region and
select the Find button to open the Purchase Order Shipments folder window. You
can also navigate to this window by selecting View Shipments on the Tools menu in
the Purchase Order Headers and Purchase Order Lines results folder windows.
To drill down to view purchase order distribution information:
•
Select the Distributions button to drill down to the Purchase Order Distributions
results folder window. You can also select View Distributions on the Tools menu to
open this window. See: Using the Purchase Order Distributions Summary Window,
page 4-35.
To enter a new release:
•
Select the New Release button to open the Releases window. If the current record is
a blanket purchase agreement or a planned purchase order, then you can create a
release against it.
To enter a new purchase order:
•
Select the New PO button to open the Purchase Orders window. See: Entering
Purchase Order Headers, page 4-40.
To open the Purchase Orders or Releases window for the current shipment:
•
Select the Open button to open the Purchase Orders window and query the
purchase order shipment on the current line. If the current shipment is for a blanket
or scheduled release, Purchasing opens the Releases window and queries the
current shipment. Your options in this window depend on the status of the order
and your approval and security options. See: Entering Purchase Order Headers,
page 4-40.
To view acceptances:
•
Select Acceptances on the Tools menu to open the Enter Acceptances window. See:
Entering and Viewing Purchase Order Acceptances, page 4-81.
To enter purchase order control information:
•
Select Control on the Tools menu to open the Control Document window. See:
Controlling Documents, page 2-57.
Purchase Orders 4-33
To enter purchase order preferences:
•
Select Preferences on the Tools menu to open the Purchase Order Preferences
window. See: Entering Purchase Order Preferences, page 4-37.
To communicate the purchase order to the supplier:
•
Select an approved purchase order and then select Communicate from the Tools
menu. In the Communicate window select the method that you would like to use to
communicate this purchase order to the supplier. Enter the Fax number or Email
address as needed. Click OK to send the purchase order. You can also communicate
purchase orders to the supplier at the time you approve them. See: Submitting a
Document for Approval, page 2-32.
To view action history:
•
Select View Action History on the Inquire menu to open the Action History
window. See: Viewing Action History, page 10-1.
To view invoices:
•
Select View Invoices on the Inquire menu to view invoice information: See: Invoice
Overview, Oracle Payables User's Guide.
To view receipts:
•
Select View Receipts on the Inquire menu to open the Find Receiving Transactions
window. See: Finding Receiving Transactions (Summary), page 9-41.
To view the requisitions for this shipment:
•
Select View Requisitions on the Inquire menu to open the Requisition Lines
Summary window. See: Using the Requisition Lines Summary Window, page 3-40.
To view approval status in Workflow:
•
Select View Approval through Workflow on the Inquire menu to open the
Workflow approval process view window.
To view contract terms:
•
If Oracle Procurement Contracts is implemented, you can select View Contract
Terms on the Inquire menu to open the Contract Terms window.
To view the formatted purchase order:
•
Select View Document on the Inquire menu to see the purchase order in the format
that will be communicated to the supplier.
Related Topics
Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide
Overview of Purchase Orders, page 4-1
Finding Purchase Orders, page 4-23
Using the Purchase Order Headers Summary Window, page 4-26
4-34 Oracle Purchasing User's Guide
Using the Purchase Order Lines Summary Window, page 4-30
Using the Purchase Order Distributions Summary Window, page 4-35
Using the Purchase Order Distributions Summary Window
Use the Purchase Order Distributions results folder window to:
•
View purchase order distribution information.
•
Access the Purchase Orders and Releases windows for entry and update of
documents.
•
Access other windows from the Tools and Inquire menus.
To navigate to the Purchase Order Distributions results window:
•
In the Find Purchase Orders window, select Distributions in the Results region and
select the Find button to open the Purchase Order Distributions folder window.
You can also navigate to this window by selecting View Distributions on the Tools
menu in the Purchase Order Headers, Purchase Order Lines, and Purchase Order
Shipments results folder windows.
To enter a new release:
•
Select the New Release button to open the Releases window. If the current record is
a blanket purchase agreement or a planned purchase order, then you can create a
release against it.
To enter a new purchase order:
•
Select the New PO button to open the Purchase Orders window. See: Entering
Purchase Order Headers, page 4-40.
To open the Purchase Orders or Releases window for the current line:
•
Select the Open button to open the Purchase Orders window and query the
purchase order on the current line. If the current line is for a blanket or scheduled
release, Purchasing opens the Releases window and queries the current line. Your
options in this window depend on the status of the order and your approval and
security options. See: Entering Purchase Order Headers, page 4-40.
To view acceptances:
•
Select Acceptances on the Tools menu to open the Enter Acceptances window. See:
Entering and Viewing Purchase Order Acceptances, page 4-81.
To enter purchase order preferences:
•
Select Preferences on the Tools menu to open the Purchase Order Preferences
window. See: Entering Purchase Order Preferences, page 4-37.
To communicate the purchase order to the supplier:
•
Select an approved purchase order and then select Communicate from the Tools
Purchase Orders 4-35
menu. In the Communicate window select the method that you would like to use to
communicate this purchase order to the supplier. Enter the Fax number or Email
address as needed. Click OK to send the purchase order. You can also communicate
purchase orders to the supplier at the time you approve them. See: Submitting a
Document for Approval, page 2-32.
To view action history:
•
Select View Action History on the Inquire menu to open the Action History
window. See: Viewing Action History, page 10-1.
To view invoices:
•
Select View Invoices on the Inquire menu to view invoice information: See: Invoice
Overview, Oracle Payables User's Guide.
To view receipts:
•
Select View Receipts on the Inquire menu to open the Find Receiving Transactions
window. See: Finding Receiving Transactions (Summary), page 9-41.
To view Oracle Projects information:
•
If Oracle Projects is implemented, you can select View Project Information on the
Inquire menu to open the Projects Information window.
To view approval status in Workflow:
•
Select View Approval through Workflow on the Inquire menu to open the
Workflow approval process view window.
To view contract terms:
•
If Oracle Procurement Contracts is implemented, you can select View Contract
Terms on the Inquire menu to open the Contract Terms window.
To view the formatted purchase order:
•
Select View Document on the Inquire menu to see the purchase order in the format
that will be communicated to the supplier.
Related Topics
Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide
Overview of Purchase Orders, page 4-1
Finding Purchase Orders, page 4-23
Using the Purchase Order Headers Summary Window, page 4-26
Using the Purchase Order Lines Summary Window, page 4-30
Using the Purchase Order Shipments Summary Window, page 4-32
4-36 Oracle Purchasing User's Guide
Entering Purchase Order Preferences
Use the Purchase Order Preferences window to enter preference information for
purchase order lines, shipments, distributions, and releases. You can save time and
effort by entering valid default values here. When you save your work in the Lines
tabbed region in the Purchase Orders window, Purchasing creates a shipment using the
organization and ship-to location if you provided valid values in the defaults region.
Then, if it is successful in creating a shipment, Purchasing creates a distribution using
these values. Similarly, when you save your work in the Purchase Order Shipments
window, Purchasing creates a distribution if it does not already exist and if you
provided a valid organization here. You can update these shipments and distributions
by navigating to the Purchase Order Shipments or Purchase Order Distributions
windows.
Purchasing can create shipments only when it has default information that meets the
following criteria:
•
There must be an organization and a location.
•
The location must belong to the organization or not be assigned to any
organization.
•
If the line contains an item (and optionally a revision), that item (and revision) must
be valid in the default shipment organization.
Purchasing can create distributions only when it has default information that meets the
following criteria:
•
If the Destination Type is Inventory, the line must have an item that is stock
enabled in the ship-to organization. Also, if a default subinventory has been
entered, it must be defined in the ship-to organization.
•
The Account Generator must be able to supply the accounts. If the Destination Type
is Expense, you can enter a default charge account, which overrides any account
supplied by the Account Generator.
•
If you are using encumbrance accounting, you must enter a default GL date.
Purchasing uses the preferences you enter in this window for the current line and all
subsequent purchase order lines that you enter during this user session. Thus, for
existing purchase orders, the defaults apply only to new lines, shipments, and
distributions that you add during this session. If you want to clear the default
information, either choose Delete Record in the Purchase Order Preferences window or
exit the application. The default values are only valid for the session in which you are
currently working. The are not saved to the database.
To enter main preferences:
1. Navigate to the Purchase Order Preferences window by selecting Preferences on the
Purchase Orders 4-37
Tools menu in most of the purchase orders and releases windows.
In the Main tabbed region, you can enter the defaults described in the following
steps.
2.
Select Confirming Order to indicate that this order is confirming a previous
informal order with the supplier.
3.
Enter a Price Type from the Lookup Codes window. See: Defining Lookup Codes,
page 1-54.
4.
For planned purchase orders and blanket purchase agreements, enter the Minimum
Release Amount for a line.
5.
If you are referencing contract purchase agreement on a standard purchase order,
enter the Contract number. The contract must be effective; that is, the current date
has to be within the effective date and the expired date of the contract.
If you reference a contract purchase agreement on a standard purchase order line,
Purchasing adds the total amount of the purchase order line to the total amount of
the contract.
6.
Enter the Transaction Nature. See: Defining Lookup Codes, page 1-54.
7.
Enter the Need By date and time when the requestor needs the item..
If you are using Purchasing with Master Scheduling/MRP, you must provide either
a need-by date or a promised-by date for shipments that correspond to purchase
order lines with Master Scheduling/MRP planned items. A need-by date is also
4-38 Oracle Purchasing User's Guide
required for Inventory planned items. See: Overview of Implementing Planning
Recommendations, Oracle Master Scheduling/MRP and Supply Chain Planning User's
Guide.
8.
Enter the Promised By date and time when the supplier promised delivery of the
items.
9.
Enter the paper Requisition Number for all distributions. Purchasing automatically
copies this number to every distribution you create for this purchase order line. You
can later review purchase orders based on paper requisitions using the Find
Purchase Orders window. If you enter a requisition number, you can also enter a
Requisition Line number. See: Finding Purchase Orders, page 4-23.
10. Enter the date you want to post expenses in your General Ledger for every
distribution you create for this purchase order line. You can enter a GL Date only if
you set up your financials system options to use encumbrance for purchase orders.
See: About Financials Options, Oracle Payables User's Guide. See: Budgetary Control
and Online Funds Checking, Oracle General Ledger User's Guide.
11. Enter the Accounting Flexfield that you want to charge for the expenses. Purchasing
uses the account you enter here only for expense destinations within your operating
unit and overrides any account built by the Account Generator. See: Using the
Account Generator in Oracle Purchasing, page E-6.
12. Enter the organization. The List of Values displays all valid receiving organizations.
13. Enter the ship-to location for the shipment.
14. Enter the Destination type to indicate the final destination of the purchased items:
•
Expense - The goods are delivered to the requestor at an expense location. The
destination subinventory is not applicable.
•
Inventory - The goods are received into inventory upon delivery.
15. Enter the Requestor. This is the employee who requests the quantities on the
purchase order distribution lines. Purchasing copies this name as the requestor for
every distribution you create for this purchase order line.
16. Enter the Deliver To location for all distributions. Purchasing copies this location to
every distribution you create for this purchase order line. The default is the
requestor's location. You can pick any location that does not have an organization
or any location whose organization matches the ship-to organization. See: Enter
Person, Oracle HRMS Enterprise and Workforce Management Guide. See: Defining
Locations, page 1-17.
17. If the destination type is Inventory, you can enter the Subinventory. See: Defining
Purchase Orders 4-39
Subinventories, Oracle Inventory User's Guide.
To apply your preference changes:
•
Select the Apply button to apply your changes.
Project tabbed region
•
If your organization has implemented Oracle Projects, Oracle Project
Manufacturing, or Oracle Grants use the Project tabbed region to enter additional
information for those products. See: Project Tab, page 3-46
Related Topics
Entering Purchase Order Lines, page 4-46
Entering Purchase Order Shipments, page 4-67
Entering Purchase Order Distributions, page 4-75
Overview of Purchasing Options, page 1-32
Purchase Order Defaulting Rules, page 4-10
Entering Purchase Order Headers
Use the Purchase Orders window to:
•
Enter standard and planned purchase orders as well as blanket and contract
purchase agreements
Note: You can also receive blanket purchase agreement lines
electronically from your suppliers through the Purchasing
Documents Open Interface. See: Receiving Price/Sales Catalog
Information Electronically, page 5-18.
•
Enter purchase orders from paper requisitions or without a requisition
•
Take approval actions on individual purchase orders and agreements on-line
If you want to create a release against a planned purchase order or a blanket purchase
agreement, use the Enter Releases window. See: Entering Release Headers, page 4-83.
If you want to place on-line requisitions onto a new or existing purchase order, use the
AutoCreate Documents window. See: Autocreate Documents Overview, page 6-1.
To enter purchase order headers:
1.
Navigate to the Purchase Orders window:
•
by selecting the New PO button in the Find Purchase Orders window or any of
its results windows
4-40 Oracle Purchasing User's Guide
•
by selecting the Open button in any of the Find Purchase Order results
windows
•
by selecting the Open button and then double-clicking the Open Documents
icon in the Notifications Summary window when the current line is a purchase
order
•
if the PO: Display the AutoCreated Document profile option is set to Yes,
Purchasing opens the Purchase Orders window when you have completed
AutoCreation of a purchase order. See: Profile Options in Purchasing, page C1.
2.
Select the Operating Unit for this purchase order.
3.
The upper part of the Purchase Orders window has the following display-only
fields:
Created - The system date is displayed as the creation date.
Status - Possible order status values are: Incomplete - The order has not been
approved. Approved - You have approved the order. You can print it and receive
items against it. Requires Reapproval - You approved the order and then made
changes that require you to reapprove it.
Total - For standard and planned purchase orders, Purchasing displays the current
Total order amount.
Amount Agreed - For blanket and contract purchase agreements only, Purchasing
displays the agreed-to amount for the agreement. The amount Released value
should not exceed the Amount Agreed. (Note also that if you change the Amount
Purchase Orders 4-41
Limit in the Terms and Conditions window, the Amount Agreed should be equal to
or less than the Amount Limit.)
Released - For blanket and contract purchase agreements only, Purchasing displays
the current total amount Released. The amount released is 0.00 until you create
releases against the blanket purchase agreement or reference the contract on a
standard purchase order.
Currency - Purchasing displays the functional currency. This is overridden by
supplier currency information.
P-Card - Purchasing displays a procurement card number if the purchase order was
created from an iProcurement requisition that used a corporate credit card for the
purchase. This field displays if the profile option PO: Use P-Cards in Purchasing is set
to Yes. Only the last four digits are displayed. Procurement cards can be used for
items with a Destination Type of Expense, for documents that do not contain a
Project number, and for standard purchase orders or releases only.
4.
Select the Operating Unit for this purchase order.
5.
Enter a unique Purchase Order number. The Revision is displayed to the right of
the number. If you chose automatic purchase order number generation in your
Purchasing Options, the cursor does not enter this field and the number is
generated when you save your work.
6.
Choose the purchase order Type: Standard Purchase Order, Planned Purchase
Order, Blanket Purchase Agreement, Contract Purchase Agreement. See: Purchase
Order Types, page 4-2.
Important: The names of the above purchase order types can be
modified in the Document Types window. See: Defining Document
Types, page 1-66.
7.
Enter the name of the Supplier for this purchase order. To approve a purchase
order, you must provide a supplier.
Important: You cannot change the supplier once you approve the
purchase order. The purchase order becomes a legal document
when you approve it. To change the supplier after you approve a
purchase order, you must cancel the existing purchase order and
create a new one for the other supplier.
8.
Enter the Site of the supplier you want to use for your purchase order. If the
supplier you choose has only one site, it is defaulted into this field. Before you can
approve a purchase order, you must provide a site. Once the purchase order is
approved, you can change the supplier site only if the PO: Change Supplier Site
4-42 Oracle Purchasing User's Guide
profile option is set to Yes. And only sites with the same currency as the previous
site can be used. If you change the supplier site, the revision will be incremented,
and will require reapproval. You cannot enter the supplier site until you have
entered a supplier.
You can optionally enter the name of the Contact at the supplier site. If the supplier
you choose has only one contact name, it is defaulted into this field. You cannot
enter a contact until you have entered a supplier site.
9.
Enter the Ship To and Bill To locations for the purchase order. If you entered a
supplier and supplier site, the Ship To and Bill To defaults reflect the locations you
assigned to the supplier or supplier site. You can accept these values or change
them to other locations. See: Purchase Order Defaulting Rules, page 4-10
10. If the Enforce Buyer Name option in your Purchasing Options is set to Yes, your
name is displayed as the Buyer, and you cannot change this value. Otherwise, you
can enter the name of any buyer. See: Defining Control Options, page 1-33.
11. For blanket and contract purchase agreements only, enter the total Amount Agreed.
This is the amount you have agreed to spend with the supplier.
12. Enter a Description of the purchase order. These comments are for internal use only
and do not print on the purchase order. You can enter up to 240 characters. If you
want to add unlimited notes, use the Attachments feature. See: Attaching Notes to
Purchasing Documents, page 1-32.
13. For blanket or contract purchase agreements, check the Global box to indicate that
this is a global agreement that can be assigned to other operating units. This
checkbox cannot be deselected once you have saved the document. See: Entering
Purchase Agreement Information, page 4-55.
14. For standard and planned purchase orders and blanket purchase agreements, enter
line information for the header you have just created. See: Entering Purchase Order
Line Information, page 4-46.
To open the Supplier Item Catalog:
•
Select the Catalog button to open the Supplier Item Catalog. See: Overview of the
Supplier Item Catalog, page 5-5.
To enter currency information:
•
Select the Currency button to open the Purchase Order Currency window. See:
Entering Currency Information, page 4-60.
To enter additional purchase order details information:
•
Select the Terms button to open the Terms and Conditions window. See: Entering
Purchase Order Details Information, page 4-61.
Purchase Orders 4-43
To enter shipment information:
•
Select the Shipments button to open the Purchase Order Shipments window. See:
Entering Purchase Order Shipments, page 4-67.
To enter price break information:
•
For blanket purchase agreements, you can select the Price Break button to open the
Price Breaks window. See: Entering Purchase Agreement Price Break Information,
page 4-73.
To take approval actions:
•
Select the Approval button to open the Approve Documents window. See:
Submitting a Document for Approval, page 2-32.
To disable Payment on Receipt for the purchase order:
•
Select the Terms button. In the Pay On field, choose Null to disable Payment on
Receipt for this document. Choose Receipt to enable Payment on Receipt. The Pay
On field is disabled if the supplier site is not a Payment on Receipt site. See:
Entering Purchase Order Details Information, page 4-61.
Tools Menu Options
To enter purchase order preferences:
•
Select Preferences on the Tools menu. See: Entering Purchase Order Preferences,
page 4-37
To enter notification controls:
•
Select Notification Control on the Tools menu (For planned purchase orders,
contract purchase agreements, and blanket purchase agreements). See: Entering
Purchase Order Notification Controls, page 4-80.
To check funds:
•
Select Check Funds on the Tools menu. See: Online Funds Availability Checking,
page 4-4
To enter or view acceptances:
•
Select Acceptances on the Tools menu to open the Acceptances window. See:
Entering and Viewing Purchase Order Acceptances, page 4-81
To copy a purchasing document:
•
Select Copy Document from the Tools menu. See: Copying Purchase Orders: , page
4-98
To renegotiate a blanket purchase agreement in Oracle Sourcing:
•
Select Create Buyer's Auction or Create Sourcing RFQ from the Tools menu.
To release encumbered funds:
1.
If budgetary controls are enabled you can release encumbered funds for your
4-44 Oracle Purchasing User's Guide
purchase order. See: Online Funds Availability Checking, page 4-5
2.
Select Unreserve from the Tools menu.
3.
Enter the Unreserve Date.
4.
Check Use Document GL Date to Unreserve to use the document's distribution GL
dates for the funds reversal instead of the unreserve date.
5.
Click OK to reverse the the funds reservation on this document.
To cancel the purchase order:
•
You can cancel the entire approved purchase order by selecting Cancel from the
Tools menu. See: Document Control Options, page 2-41
Note: If you cancel a line of an approved purchase order from this
window, the status of the purchase order will be Requires
Reapproval.
Inquire Menu Options
To view action history:
•
Select View Action History on the Inquire menu to open the Action History
window. See: Viewing Action History, page 10-1.
To view the formatted purchase order:
•
Select View Document on the Inquire menu to see the purchase order in the format
that will be communicated to the supplier.
Actions Menu Options
To view acquisition cost:
•
Select Acquisition Cost from the Actions menu to view the acquisition cost
associated withpurchase order lines and shipments summarized by cost factor.
To view taxes:
•
Select Manage Tax from the Actions menu to view and manage the tax for the
purchase order. See: Tax Information in Purchasing, .
Other Purchase Order Options
To reaccess a purchase order quickly:
•
Choose Place on Navigator from the File menu. Choose the Documents tabbed
region in the Navigator to later access the purchase order more quickly. See also:
Using the Navigator's Documents Region, Oracle Applications User's Guide.
Purchase Orders 4-45
Note: Once you place a document in the Navigator, it is the first
thing you see in the Navigator the next time you log into
Purchasing. Choose Functions to return to the Purchasing menu.
Related Topics
Overview of Purchase Orders, page 4-1
Entering Purchase Order Lines, page 4-46
Changing Encumbered Documents, page 4-112
Procurement Card Purchase Orders and Releases, page 4-117
Entering Purchase Order Lines
Use the Lines tabbed region in the Purchase Orders window to create purchase order
lines.
When you save your work, Purchasing creates shipments and distributions if sufficient
valid default information is available. Use the Purchase Order Shipments window to
review, edit, and create multiple shipment lines for each purchase order line. See:
Entering Purchase Order Shipments, page 4-67.
To enter a purchase order line:
1.
Select the Lines tabbed region in the Purchase Orders window.
4-46 Oracle Purchasing User's Guide
2.
Enter the purchase line Number for the purchase order line. If you start a new
purchase order line, Purchasing displays the next sequential line number available.
You can accept this number or enter any line number that does not already exist.
This number is used for all tabbed regions in the Purchase Orders window.
3.
Enter the line Type for the item. When you create your purchase order line, you
enter a line type as part of your item information. When you enter a line type,
Purchasing automatically copies the corresponding defaults. You can change the
line type after you have saved your work, if the change is in the same line type
class, but Purchasing won't automatically copy the new defaults. If you change the
line type before you save your work, Purchasing automatically copies the new
defaults if the new line type is in a different line type class.
You can enter predefined items for your purchase order line only when you specify
a quantity based line type. If Bills of Material and Work in Process are installed and
you have defined an outside processing line type, you can enter that type here to
purchase outside processing. See: Defining Default Options, page 1-37. See:
Defining Line Types, page 1-61.
To enter lines for services, you can specify a line type that has its basis as amount. If
Oracle Services Procurement is implemented, services lines with a rate based line
type can be entered or fixed price based line type can be created from the Supplier
Item Catalog. See: Defining Line Types, page 1-61. See: Overview of the Supplier
Item Catalog, page 5-5.
4.
Enter the Item you want to purchase. If you enter an item, Purchasing displays the
purchasing category, item description, unit of measure, and unit price associated
with the item. To create a purchase order line for a one-time item, simply skip the
Purchase Orders 4-47
item number field and enter a purchasing category and an item description. If you
are purchasing outside processing, you can enter only outside processing items.
See: Defining Items, Oracle Inventory User's Guide.
If you enter an item that is under automatic sourcing control the unit price will be
displayed and reference information included from the most current agreement
available to Oracle Purchasing. See: Overview of Automatic Sourcing, page 5-24
Note that you cannot enter an outside processing item in a global agreement,
regardless of the item's defining organization.
5.
Enter the Revision number for the item on the purchase order line. See: Defining
Item Revisions, Oracle Inventory User's Guide. See: Inventory Attribute Group, Oracle
Inventory User's Guide.
6.
Enter the purchasing Category of the item you want to purchase. If you choose an
item, Purchasing displays the purchasing category for the item. You cannot change
the purchasing category if you choose an item. See: Defining Categories, Oracle
Inventory User's Guide.
7.
Enter the Description of the item. If you choose an item, Purchasing displays its
description. You can change the item description only if you set up the item
attributes to let you do so. The full item description for the current line is displayed
beneath the Lines tabbed region.
8.
Enter the total Quantity you are ordering on the purchase order line.
9.
Enter the UOM of the item. The unit of measure qualifies the quantity you enter on
the purchase order line. When you choose a line type, its default unit of measure
appears here. When you choose an item number, its unit of measure overrides the
line type default. You can change the UOM until the item has been received, billed,
or encumbered. If the line is sourced to a quotation or global agreement, you cannot
change the UOM after the line has been saved.
10. Enter the unit Price for the item. If you choose an item, the default price is the list
price for the item. Otherwise, the default price is from the line type. The Amount
field displays the unit price multiplied by the quantity.
If you entered an item that is under automatic sourcing control the unit price will be
displayed from the most current agreement available to Oracle Purchasing. See:
Overview of Automatic Sourcing, page 5-24
Note: If you manually override the defaulted price, Oracle
Purchasing does not recalculate the price when pricing related
changes are made to the purchase order.
11. Enter the Promised date and time that the supplier promised delivery of the items.
4-48 Oracle Purchasing User's Guide
Multiple distributions, Promised date, and Need-By date display as "multiple" at
the line level.
12. Enter the Need By date and time when the requester needs the item.
If you are using Master Scheduling/MRP, you must provide either a need-by date
or a promised-by date for shipments that correspond to purchase order lines with
Master Scheduling/MRP planned items. A need-by date is also required for
Inventory planned items. See: Overview of Implementing Planning
Recommendations, Oracle Master Scheduling/MRP and Supply Chain Planning User's
Guide.
Multiple distributions, Promised date, and Need-By date display as "multiple" at
the line level.
13. Optionally enter the Supplier's Item number for this item.
14. Select Reserved to reserve funds for the line.
15. If the Oracle Process Manufacturing (OPM) application is installed and
implemented, you are a process manufacturing user, and the selected purchasing
organization is a process organization, then the process fields are enabled. The three
process fields are Secondary UOM, Secondary Quantity, and Grade. See: Entering
OPM Line Information , page 3-56 for complete details.
To recalculate prices:
•
If you have manually changed the price and then you have changed price related
attributes of a line (for example: ship to organization or need-by date), you can have
Oracle Purchasing recalculate the price by selecting Recalculate Price from the Tools
menu.
Related Topics
Tools Menu Options, page 4-44
Inquire Menu Options, page 4-45
Overview of Purchase Orders, page 4-1
Entering Purchase Order Headers, page 4-40
Overview of the Supplier Item Catalog, page 5-5
Entering Currency Information, page 4-60
Entering Purchase Order Details Information, page 4-61
Entering Purchase Order Shipments, page 4-67
Entering Purchase Agreement Price Break Information, page 4-73
Submitting a Document for Approval, page 2-32.
Purchase Orders 4-49
Entering Purchase Order Notification Controls, page 4-80
Entering and Viewing Purchase Order Acceptances, page 4-81
Viewing Action History, page 10-1
Entering Purchase Order Preferences, page 4-37
Changing Encumbered Documents, page 4-112
Entering Purchase Order Price Reference Information
Use the Price Reference tabbed region in the Purchase Orders window to enter pricing
information for purchase order lines.
To enter price reference information:
1.
Select the Price Reference tabbed region in the Purchase Orders window.
2.
Enter the List Price for the item. If you have entered an item, Purchasing displays
the list price for the item. (See: Defining Items, Oracle Inventory User's Guide.) You
can accept the default list price or change it. Use this field to help evaluate your
buyers. Purchasing uses the list price you enter here in the savings analysis reports.
See: Savings Analysis Report (By Buyer), page 11-78 and Savings Analysis Report
(By Category), page 11-79.
3.
Enter the latest Market Price for the item. If you enter an item, Purchasing displays
the market price for the item. Use this field to help evaluate your buyers.
Purchasing uses the price you enter here in the savings analysis reports if you do
not provide a value in the List Price field.
4-50 Oracle Purchasing User's Guide
4.
Enter the Price Type from your lookup codes. See: Defining Lookup Codes, page 154.
5.
For planned purchase orders and blanket purchase agreements only, check Allow
Price Override to indicate that the release price can be greater than the price on the
purchase agreement line. If you allow a price override, the release price cannot
exceed the Price Limit specified on the line. If you do not allow a price override,
Purchasing displays on the release the shipment price from the purchase agreement
and prevents you from updating it. You cannot enter this field if the line type is
amount based.
6.
If you allow price override, enter the Price Limit. This is the maximum price per
item you allow for the item on this agreement line.
7.
Select Negotiated to indicate that the purchase price is negotiated. If the actual price
is greater than or equal to the list price, then the field is unchecked as the default. If
the actual price is less than the list price, then the field is checked as the default.
You can accept the default value or change it.
Related Topics
Overview of the Supplier Item Catalog, page 5-5
Entering Currency Information, page 4-60
Entering Purchase Order Details Information, page 4-61
Entering Purchase Order Shipments, page 4-67
Entering Purchase Agreement Price Break Information, page 4-73
Submitting a Document for Approval, page 2-32.
Entering Purchase Order Notification Controls, page 4-80
Entering and Viewing Purchase Order Acceptances, page 4-81
Viewing Action History, page 10-1
Entering Purchase Order Preferences, page 4-37
Entering Purchase Order Reference Document Information
Use the Reference Documents tabbed region in the Purchase Orders window to enter
reference document information for purchase order lines.
Purchasing lets you reference quotation information on your purchase orders.
To enter reference document information:
1.
Select the Reference Documents tabbed region in the Purchase Orders window.
Purchase Orders 4-51
2.
Enter the Contract purchase agreement number. You cannot enter a contract
number until you have entered a supplier in the header, and the contract must be
for this supplier. The contract you choose must be effective; that is, the current date
has to be within the effective date and the expired date of the contract.
If you reference a contract purchase agreement on a standard purchase order line,
Purchasing adds the total amount of the purchase order line to the total amount of
the contract purchase agreement. Purchasing lists only those contracts with the
same supplier as the one on your standard purchase order.
If this purchase order references a global agreement then Global will be checked
and the Owning Org will display the organization that owns the global agreement.
Important: If you have not yet provided a supplier on your
standard purchase order, you cannot choose any contracts for your
purchase order lines. If you want to change the supplier on your
standard purchase order after you reference a contract on your
purchase order lines, you must remove the references to the
contract purchase agreement, or you will not be able to approve the
purchase order. Purchasing lets you change suppliers only on
standard and planned purchase orders with the status Incomplete.
Purchasing displays the Quotation and Quotation Line numbers,
Quotation Type, and Supplier Quotation Number if you select a
quotation from the Supplier Item Catalog or Supplier-Item
Attributes windows.
3.
You can enter project contract information in this region. If you are using Oracle
4-52 Oracle Purchasing User's Guide
Project Contracts you can enter the project Contract number and Rev (version
number). Once you have entered this information, you will then be able to enter
additional project contract details at the distribution level.
Related Topics
Overview of the Supplier Item Catalog, page 5-5
Entering Currency Information, page 4-60
Entering Purchase Order Details Information, page 4-61
Entering Purchase Order Shipments, page 4-67
Entering Purchase Agreement Price Break Information, page 4-73
Submitting a Document for Approval, page 2-32.
Entering Purchase Order Notification Controls, page 4-80
Entering and Viewing Purchase Order Acceptances, page 4-81
Viewing Action History, page 10-1
Entering Purchase Order Preferences, page 4-37
Entering Purchase Order Miscellaneous Information
Use the More tabbed region in the Purchase Orders window to enter miscellaneous
information for purchase order lines.
To enter miscellaneous information:
1.
Select the More tabbed region in the Purchase Orders window.
Purchase Orders 4-53
2.
Enter a Note to the Supplier for the purchase order header. You can enter up to 240
characters. If you want to enter unlimited notes, use the Attachments feature. See:
Attaching Notes to Purchasing Documents, page 1-32
3.
Enter the UN identification Number for the item on the purchase order line. The
default, if present, is from the item record. See: Defining UN Numbers, page 1-53.
4.
Enter the Hazard Class for the item on the purchase order line. If you enter a UN
number, Purchasing displays the corresponding hazard class. The default, if present,
is from the item record. See: Defining Hazard Classes, page 1-52.
5.
Select Capital Expense to indicate that the purchase is a capital expenditure.
6.
Enter the Transaction Nature. See: Defining Lookup Codes, page 1-54.
Related Topics
Overview of the Supplier Item Catalog, page 5-5
Entering Currency Information, page 4-60
Entering Purchase Order Details Information, page 4-61
Entering Purchase Order Shipments, page 4-67
Entering Purchase Agreement Price Break Information, page 4-73
Submitting a Document for Approval, page 2-32.
Entering Purchase Order Notification Controls, page 4-80
4-54 Oracle Purchasing User's Guide
Entering and Viewing Purchase Order Acceptances, page 4-81
Viewing Action History, page 10-1
Entering Purchase Order Preferences, page 4-37
Entering Purchase Agreement Information
Blanket and contract purchase agreements may require additional information be
entered. Discussed in this section are:
•
Additional terms information
•
Line pricing information
•
Assignment of organizations to global agreements
•
Renegotiating blanket purchase agreements
To enter additional agreement terms on the header:
1.
From the Purchase Orders window, select Terms.
2.
Enter the effective dates, release amounts, and price update information in the
Agreement Controls region. See: Entering Purchase Order Details Information, page
4-61.
To enter additional blanket agreement line information:
1.
In the Agreement tabbed region of the Purchase Orders window (when you've
selected a Type of Blanket Purchase Agreement), enter the Minimum Release
Amount against this purchase agreement line.
Purchase Orders 4-55
2.
Enter the Quantity Agreed. This is printed on your purchase orders. Purchasing
does not automatically compute the quantity agreed from the amount agreed. Use
the Amount Agreed field to provide agreed amounts.
3.
Enter the Amount Agreed. Purchasing does not automatically compute the amount
agreed from the quantity agreed.
4.
Optionally enter an Expiration Date to prevent ordering of the item after that date.
If the item on the agreement has expired but already exists on an open release, you
can still use the release. However, the expired line item will not be used for
sourcing, and any future releases you create will not allow using the expired item.
5.
Select Cumulative Pricing if you want Purchasing to choose the price break by
adding the current release shipment quantity to the total quantity already released
against the purchase agreement line. Otherwise, Purchasing chooses the price break
by using the individual release shipment quantity.
Note: Cumulative Pricing can not be used with global agreements.
Organizations can take advantage of negotiations completed with suppliers by other
business units. To do this the original blanket purchase agreement or contract purchase
agreement is first created as a global agreement (Global checkbox). Then the agreement
is enabled for use in the authorized business units (operating units).
To enable organizations for a global agreement:
1. From the Purchase Orders window, open a global agreement and select Enable
Organizations from the Tools menu.
4-56 Oracle Purchasing User's Guide
2.
Select the Requesting Org operating unit. This organization can create requisitions
that reference the global agreement.
3.
Select the Purchasing Org operating unit. This organization creates purchase orders
for the Requesting Org selected in the previous step.
Note: If encumbrance is enabled, the Requesting Org and the
Purchasing Org must be the same.
4.
Select the Purchasing Site. This is the supplier site in the purchasing organization
which will fulfill the order.
5.
To disable the global agreement in an organization check the Disabled box.
6.
Click the OK button to save your organization assignments.
For more information on using global agreements see: Center-Led Procurement,
page 1-78
To renegotiate a blanket purchase agreement:
1.
If you have Oracle Sourcing enabled, query the blanket purchase agreement that
you wish to renegotiate.
2.
From the Tools menu, select Create Buyer's Auction or Create Sourcing RFQ.
To encumber a blanket purchase agreement:
•
You can encumber a blanket purchase agreement from the Terms and Conditions
window. See: Entering Purchase Order Details Information, page 4-61.
Purchase Orders 4-57
Related Topics
Overview of the Supplier Item Catalog, page 5-5
Entering Currency Information, page 4-60
Entering Purchase Order Details Information, page 4-61
Entering Purchase Order Shipments, page 4-67
Entering Purchase Agreement Price Break Information, page 4-73
Submitting a Document for Approval, page 2-32.
Entering Purchase Order Notification Controls, page 4-80
Entering and Viewing Purchase Order Acceptances, page 4-81
Viewing Action History, page 10-1
Entering Purchase Order Preferences, page 4-37
Entering Purchase Order Temporary Labor Information
If you have licensed and implemented Oracle Services Procurement, you can use the
Temporary Labor tabbed region in the Purchase Orders window to enter temporary
labor information for purchase order lines.
To enter temporary labor information:
1.
Select the Temporary Labor tabbed region in the Purchase Orders window.
4-58 Oracle Purchasing User's Guide
2.
Optionally, enter the contractor's First Name.
3.
Optionally, enter the contractor's Last Name.
4.
Enter the contractor's Start Date.
5.
Optionally, enter the contractor's End Date.
To enter price differentials:
•
For a rate based line type you can enter price differentials after saving your line by
selecting Price Differential from the Tools menu. See: Purchasing Services, page 158
Related Topics
Setting Up Oracle Services Procurement, page 1-88
Entering Currency Information, page 4-60
Entering Purchase Order Details Information, page 4-61
Entering Purchase Order Shipments, page 4-67
Submitting a Document for Approval, page 2-32.
Viewing Action History, page 10-1
Purchase Orders 4-59
Entering Currency Information
Use the Currency window to enter and change currency information for purchase
orders, RFQs, and quotations.
For purchase orders, you can change currency information until the purchase order is
approved or encumbered. Note that changing the purchase order supplier to one that
uses a different currency overrides any information you have entered in this region.
To enter currency information:
1.
Navigate to the Currency window by selecting the Currency button in the Purchase
Orders, RFQs, and Quotations windows.
2.
Purchasing displays the functional Currency from your Primary Ledger, and you
can accept or change the currency. If you change the currency, you must update the
unit price on all lines to reflect what that price would be at the new currency.
3.
You can enter a Rate Type only if the currency for this document is different from
your functional or base currency. The default is the currency rate type from the
Purchasing Options window.
Purchasing supplies you with one of two predefined currency rate types: User or
EMU Fixed. A rate type of User means that you can enter a conversion rate between
the foreign currency (or transaction currency in a document entry window) and the
base currency (or functional currency, defined in your set of books). A rate type of
EMU Fixed means that if either your transaction currency or your functional
currency is Euro (the European Monetary Unit currency) and the other is another
European currency, Purchasing automatically enters a conversion Rate Date and
Rate for you that you cannot change.
You can define additional currency rate types in the Daily Conversion Rate Types
window, and you can enter User or one of your additional types as the default.
Note that you cannot approve a purchase order without a rate type if you are not
using your functional currency.
4-60 Oracle Purchasing User's Guide
4.
The default Rate Date is the current date. Purchasing uses this date to obtain the
currency conversion rate from your conversion definitions and displays the rate if it
finds one.
5.
If the rate type is User, you can enter the conversion rate between the foreign
currency and your functional currency. This rate corresponds to the value of your
foreign currency in your functional currency. For example, if your functional
currency is US Dollars, the foreign currency is British Pounds, and 1 British Pound
equals 2 US Dollars, you should enter 2 in this field. For other rate types, when you
enter a rate date for which a rate has been defined, Purchasing displays the rate.
6.
Click Done to apply your entries.
To cancel your entries and return:
•
Select the Cancel button to cancel your entries and return to the window from
which you accessed the Currency window.
Related Topics
Purchase Order Defaulting Rules, page 4-10
Defining Purchasing Options, page 1-32
Defining Currencies, Oracle General Ledger User's Guide
Defining Conversion Rate Types, Oracle General Ledger User's Guide
Entering Daily Rates, Oracle General Ledger User's Guide
Defining Sets of Books, Oracle General Ledger User's Guide
Entering Purchase Order Details Information
Use the Terms and Conditions window to enter terms, conditions, and control
information for purchase orders. Discussed in this section are:
•
Purchase Order Terms
•
Agreement Controls
•
Contract Terms
•
Encumbrance Controls
To enter purchase order terms information:
1.
Navigate to the Terms and Conditions window by selecting the Terms button in the
Purchase Orders window.
2.
Enter the Payment terms for the purchase order. Purchasing displays default
Purchase Orders 4-61
payment terms that you can accept or change. See: Defining Payment Terms, Oracle
Payables User's Guide.
3.
Enter the Freight terms for the purchase order. Purchasing displays default freight
terms that you can accept or change. See: Defining Lookup Codes, page 1-54
4.
Enter the freight Carrier for shipment of the purchase order. Purchasing displays a
default freight carrier that you can accept or change. See: Defining Freight Carriers,
Oracle Shipping Execution Guide.
5.
Enter the FOB point for the purchase order. Purchasing displays a default free on
board (FOB) designation that you can accept or change. See: Defining Lookup
Codes, page 1-54.
6.
Optionally select a value in the Pay On field to enable or disable Payment on
Receipt for this document.
Receipt is defaulted in this field if the supplier site is set up as a Payment on Receipt
site in the Supplier Sites window. Receipt means that Payment on Receipt will
automatically generate an invoice for this purchase order.
Select Null if you do not want Payment on Receipt to automatically create an
invoice for this document. If the supplier site is not set up as a Payment on Receipt
4-62 Oracle Purchasing User's Guide
site, this field is disabled, and you cannot change it. See: Payment on Receipt, page
12-14.
You can update the Pay On field again on a release (if the supplier is a Payment on
Receipt site).
7.
Select the Acceptance Required method. If you select a method, you can enter the
due By date, when you require the supplier to return an acceptance for your
purchase order. See: Entering and Viewing Purchase Order Acceptances, page 4-81
.
•
Document only: Acceptance is entered for the entire document.
•
Document or Shipment: Acceptance is entered for the document or for individual
shipments.
•
Document and Signature: If Oracle Procurement Contracts is implemented,
acceptances are entered for the entire document with a signature. This method
causes the approved document to have a status of Pre-Approved until
signatures are completed.
8.
Select Confirming Order to indicate that the purchase order is a confirming order. A
confirming order is an order that you are submitting formally to confirm a verbal
order already placed with the supplier. For confirming orders, Purchasing prints
the following on the purchase order header: This is a confirming order. Do not
duplicate.
9.
Select Firm to indicate that the purchase order is firm. Firm your purchase order
when you want to indicate to Master Scheduling/MRP or your manufacturing
application that it should not reschedule this purchase order shipment.
10. Select Supply Agreement if you want Oracle Supplier Scheduling to communicate
releases against this blanket purchase agreement to suppliers.
Supplier Scheduling can communicate releases against a blanket purchase
agreement only when this option is selected.
11. If Oracle Transportation is implemented, select the party responsible for
transportation from Transportation Arraigned. See: Oracle Transportation
Overview, Oracle Transportation User's Guide.
12. Enter a Supplier Note and a Receiver Note. You can enter up to 240 characters in
these fields.
Note: If you are entering a release , the remaining fields in this window
are displayed from the original agreement and can not be updated.
Purchase Orders 4-63
To enter purchase agreement information:
1.
Click Terms in the Purchase Orders window to navigate to the Terms and
Conditions window.
2.
For planned purchase orders, blanket purchase agreements, and contract purchase
agreements, enter the Effective start date for the purchase order. A starting date is
necessary if you are using a warning delay on notification controls. You cannot
associate a purchase order line with a contract that is not yet effective. You also
cannot create a release with a creation date that is before the corresponding blanket
purchase agreement or planned purchase order effective date.
3.
For planned purchase orders, blanket purchase agreements, and contract purchase
agreements, enter the Effective expiration date for the purchase order. This date
must be later than the start date and later than any existing releases. You cannot
associate a purchase order line with a contract that has expired. You also cannot
create a release with a date that is after the corresponding blanket purchase
agreement or planned purchase order expiration date.
4.
For planned purchase orders, blanket purchase agreements, and contract purchase
agreements, enter the Amount Limit (for the total of all releases) and the Minimum
Release Amount that can be released against this purchase order. For blanket and
contract purchase agreements, the Amount Limit must be equal to or greater than
the Amount Agreed. Enter Effective from and to dates to limit the agreement
controls by time.
5.
For blanket purchase agreements, enter a Price Update Tolerance only if you are
importing price/sales catalog information through the Purchasing Documents Open
Interface.
The Price Update Tolerance specifies the maximum percentage increase allowed to
an item's price on this blanket purchase agreement when your supplier sends
updated price/sales catalog information through the Purchasing Documents Open
Interface. This field affects only blanket purchase agreements imported through the
Purchasing Documents Open Interface. See: Setting a Price Tolerance in a
Price/Sales Catalog Update, page 5-20.
If you have implemented Oracle Procurement Contracts; you can view and maintain
contract clauses, supporting documents, and deliverables using that product. Oracle
Purchasing provides access to these features, as well as the ability to view all contract
content and their ammendments in the PDF version of the purchase order and from the
Change History window. See: Viewing Purchase Order Changes, page 10-3.
To enter contract terms information (Oracle Procurement Contracts):
1.
Click Terms in the Purchase Orders window to navigate to the Terms and
Conditions window.
Note: See the online help in the Oracle Procurement Contracts
4-64 Oracle Purchasing User's Guide
windows for information regarding their use.
2.
If Oracle Procurement Contracts is implemented, click Author Contract Terms to
add contract clauses and deliverables to this purchase order.
3.
Click Manage Contract Documents to add or maintain documents supporting the
contract information for this purchase order.
4.
Click View Contract Terms to view contract clauses and deliverables.
5.
Click Update Deliverable Status to enter status information for the contract
deliverables associated with this purchase order.
To enter encumbrance information:
1.
Click Terms in the Purchase Orders window to navigate to the Terms and
Conditions window.
Purchase Orders 4-65
2.
If you have encumbrance turned on, select the Encumbrance tabbed region.
3.
You can encumber a blanket purchase agreement by checking the Encumber box.
See: Budgetary Control and Online Funds Checking, Oracle General Ledger User's
Guide
4.
Select the encumbrance Budget Account.
5.
Enter the GL Date for this encumbrance reservation. This date must be in an open
Purchasing period.
6.
Enter the Amount to Encumber.
7.
For Oracle Public Sector customers that have the USSGL profile option enabled,
select the Transaction Code.
Related Topics
Purchase Order Defaulting Rules, page 4-10
4-66 Oracle Purchasing User's Guide
Entering Purchase Order Shipments
Use the Shipments window to enter multiple shipments for standard and planned
purchase order lines and to edit shipments that Purchasing automatically created for
you. A purchase order shipment specifies the quantity, ship-to organization and
location, date you want your supplier to deliver the items on a purchase order line, and
country of origin for the items. When you save your work, Purchasing creates
distributions if sufficient valid default information is available and if there are no
existing distributions.
To enter purchase order shipment information:
1.
For standard and planned purchase orders, you can navigate to the Shipments
window by selecting the Shipments button in the Purchase Orders window.
The first tabbed region in the Shipments window is the Shipments tabbed region. In
addition to the enterable fields discussed in the following steps, this region displays
the UOM, the Original Promise date (if the Promised date has already been
changed, the original promised date is displayed here), the Charge Account, the line
Amount, and a check box to indicate whether funds have been Reserved. See:
Budgetary Control and Online Funds Checking, Oracle General Ledger User's Guide.
2.
Enter the line Number for the shipment line. If you enter a new shipment line,
Purchasing displays the next sequential line number available. You can enter any
line number that does not already exist.
3.
Enter the ship-to Organization. If you entered an item, you can pick only
organizations in which the item is defined. If you entered a revision number on the
purchase order line, then the item revision must also be defined in the organization.
Note that you cannot update the organization once you have saved your work if the
Purchase Orders 4-67
shipment has distributions. See: Purchase Order Defaulting Rules, page 4-10
4.
Enter the Ship-To location for the shipment. You can pick any location that does not
have an organization or any location whose organization matches the organization
in the previous field. See: Purchase Order Defaulting Rules, page 4-10.
5.
Enter the Quantity (Amount, if using Oracle Services Procurement) for the
shipment. This value must be greater than 0. The default is the quantity from the
corresponding Purchase Order Line. If you decrease this quantity, Purchasing
automatically defaults the quantity ordered of the next line to the total quantity that
you have not yet placed on a shipment line. The UOM is displayed to the right of
the Quantity.
6.
Enter the date and time that the supplier Promised delivery of the items. This
promised date is printed on the purchase order shipment. The default is from the
Purchase Order Preferences window.
7.
Enter the Need By date and time when the requestor needs the item. This date is
printed on the purchase order if you do not enter a promised date. The default is
from the Purchase Order Preferences window.
If you use Purchasing with Master Scheduling/MRP, you must provide a need-by
date for purchase order shipments with Master Scheduling/MRP planned items.
You must also provide a need-by date for Inventory planned items. See: Overview
of Implementing Planning Recommendations, Oracle Master Scheduling/MRP and
Supply Chain Planning User's Guide.
8.
Optionally choose or change the Note for Receiver.
The Note for Receiver is a note which will be displayed at the time of receipt for this
shipment.
The Note for Receiver displayed here defaults from the requisition line that this
purchase order was created from. Otherwise, this field is blank.
9.
Optionally choose or change the Country of Origin.
The Country of Origin is the country in which an item is manufactured.
The Country of Origin displayed here defaults from the Approved Supplier List, if
it is defined there. If not, it defaults from the supplier site in the Supplier Sites
window. Otherwise, this field is blank. You can leave it blank or select a country.
If you do not know the originating country, you can enter or change the Country of
Origin later on the receipt.
10. If you are a process manufacturing user and the Oracle Process Manufacturing
(OPM) application is installed, then the Oracle Purchasing for Process Inventory
functionality is enabled. If the selected purchasing organization is a process
organization, then the three process fields the Secondary UOM, Secondary
4-68 Oracle Purchasing User's Guide
Quantity, and Grade are enabled. For more information on these fields see: Entering
OPM Line Information , page 3-56.
To display and enter more shipment information:
1.
Select the More tabbed region in the Purchase Order Shipments window.
2.
Enter the Receipt Close Tolerance percent for your shipments. Purchasing
automatically closes a shipment for receiving if it is within the receiving closing
tolerance at the receiving close point. You need to set the receiving close point in the
Purchasing Options window. See: Defining Control Options, page 1-33.
3.
Enter the Invoice Close Tolerance percent for your shipments. Purchasing
automatically closes a shipment for invoicing if it is within the invoicing closing
tolerance at billing, when Payables matches invoices to purchase orders or receipts.
See: Defining Control Options, page 1-33
4.
Select one of the following options for Match Approval Level:
•
Two-Way: Purchase order and invoice quantities must match within tolerance
before the corresponding invoice can be paid.
•
Three-Way: Purchase order, receipt, and invoice quantities must match within
tolerance before the corresponding invoice can be paid.
•
Four-Way: Purchase order, receipt, accepted, and invoice quantities must match
within tolerance before the corresponding invoice can be paid.
If you enter an item, a value for this field is defaulted. See: Purchase Order
Defaulting Rules, page 4-10.
5.
Select an Invoice Match Option:
•
Purchase Order: Payables must match the invoice to the purchase order.
•
Receipt: Payables must match the invoice to the receipt.
Choose Receipt if you want to update exchange rate information on the receipt
or if you want your accounting to use exchange rate information based on the
receipt date. (If you use Periodic Costing, you must match to the receipt to
ensure accurate cost accounting.)
The Invoice Match Option defaults from the Supplier Sites window. You can
change the Invoice Match Option on the shipment until you receive against the
shipment.
Note: The Invoice Match Option and the Match Approval Level are
independent options. You can perform whichever Invoice Match
Option you want regardless of the Match Approval Level.
Purchase Orders 4-69
See: Entering Purchase Order Matched Invoices, Accounts Payable User's Guide.
6.
Select Accrue at Receipt to indicate that the items on this purchase order line accrue
upon receipt. Inventory destined items always accrue upon receipt. For expense
items, if the Accrue Expense Items flag in the Purchasing Options window is set to
Period End, the items cannot accrue upon receipt, and you cannot change the
shipment level default. If the Accrue Expense Items flag is set to At Receipt, the
default is to accrue upon receipt, but you can change it to Period End. See: Defining
Accrual Options, page 1-39.
Important: If you are using Cash Basis Accounting, you should use
the Purchasing Options window to set the Accrue Expense Items
flag to Period End, and you should not select Accrue on Receipt in
this window.
7.
Select Firm to firm the purchase order shipment. Firm your purchase order when
you want to indicate to Master Scheduling/MRP or your manufacturing application
that it should not reschedule this shipment.
8.
The VMI box will be checked if this item is under vendor managed inventory
control. Likewise, the Consigned box will be checked if this is a supplier consigned
item. See the Oracle Consigned Inventory and Vendor Managed Inventory Process Guide
for details.
To display status information:
•
Select the Status tabbed region in the Purchase Order Shipments window.
For each shipment, Purchasing displays the Status and the quantity (amount for
Oracle Services Procurement) Ordered, Received, Cancelled, and Billed.
To display drop ship information:
•
Select the Drop Ship tabbed region in the Purchase Order Shipments window. See:
Drop Shipments, page 4-113.
For each shipment, Purchasing displays the Sales Order Number and Line, Ordered
Quantity, Shipped Quantity, Sales Order Status, Ship To Customer Name, and Ship
To Customer Contact.
To enter receiving control information:
•
Select the Receiving Controls button to open the Receiving Controls window. See:
Entering Purchase Order Receiving Controls, page 4-71.
To enter purchase order distribution information:
•
Select the Distributions button to open the Distributions window. See: Entering
Purchase Order Distributions, page 4-75.
4-70 Oracle Purchasing User's Guide
To view sales order for drop shipped orders:
•
Select View Sales Order on the Inquire menu to open the Sales Orders window for
the sales order associated with this purchase order. See: Drop Shipments, page 4-113
.
Related Topics
Tools Menu Options, page 4-44
Inquire Menu Options, page 4-45
Drop Shipments, page 4-113.
Entering Purchase Order Preferences, page 4-37
Changing Encumbered Documents, page 4-112
Processing Periodic Acquisition Costs, Oracle Cost Management User's Guide
Entering Purchase Order Receiving Controls
Use the Receiving Controls window to enter receiving control information for purchase
orders and releases. Note that controls you enter here apply to specific purchase
orders/releases and override the receiving controls you enter in the Receiving Options
window. See: Receiving Controls, Options, and Profiles, page 9-7.
To enter purchase order receiving controls:
1.
Navigate to the Receiving Controls window by clicking Receiving Controls in the
Shipments window for purchase orders and in the Releases window for releases.
Purchase Orders 4-71
2.
Enter the maximum acceptable number of Days Early and Days Late for receipts.
3.
Enter the Action for receipt date control. This field determines how Purchasing
handles receipts that are earlier or later than the allowed number of days selected
above. Choose one of the following options:
•
None - Receipts may exceed the allowed days early or late.
•
Reject - Purchasing does not permit receipts outside the selected number of days
early or late.
•
Warning - Purchasing displays a warning message but permits receipts outside
the selected number of days early or late.
Purchasing displays the Last Accept Date, which is the last date when the shipment
can be received. This is the promised date plus the number of days late allowed.
4.
Enter the maximum acceptable over-receipt Tolerance percent.
5.
Enter the Action for Overreceipt Quantity control. This field determines how
4-72 Oracle Purchasing User's Guide
Purchasing handles receipts that exceed the quantity received tolerance. Choose one
of the following options:
•
None - Receipts may exceed the selected tolerance.
•
Reject - Purchasing does not permit receipts that exceed the selected tolerance.
•
Warning - Purchasing displays a warning message but permits receipts that
exceed the selected tolerance.
6.
Select Allow Substitute Receipts to indicate that receivers can receive substitute
items in place of ordered items. You must define substitute items before you can
receive them. See: Defining Item Relationships, Oracle Inventory User's Guide
7.
Enter the default Receipt Routing that you assign goods: Direct Delivery, Inspection
Required, orStandard Receipt. You can override this routing during receipt by
changing the destination type, if the RCV: Allow Routing Override user profile
option is enabled. See: Profile Options in Purchasing, page C-1.
8.
Enter the Enforce Ship To location option to determine whether the receiving
location must be the same as the ship-to location. Choose one of the following
options:
9.
•
None - The receiving location may differ from the ship-to location.
•
Reject - Purchasing does not permit receipts when the receiving location differs
from the ship-to location.
•
Warning - Purchasing displays a warning message but permits receipts when
the receiving location differs from the ship-to location.
Select the OK button to apply your entries and return to the original window.
To cancel your entries:
•
Select the Cancel button to cancel your entries and return to the original window.
Related Topics
Defining Receiving Options, page 1-41
Entering Purchase Agreement Price Break Information
Use the Price Break window to enter price break information for blanket purchase
agreement lines.
To enter price break information:
1.
Navigate to the Price Break window by selecting the Price Break button in the
Purchase Orders 4-73
Purchase Orders window.
2.
Enter a line Number for the shipment line. Purchasing displays the next available
line number as the default.
3.
Enter the ship to Organization. If you entered an item, you can select only
organizations in which the item is defined. If you entered a revision number on the
purchase order line, then the item revision must also be defined in the organization.
See: Purchase Order Defaulting Rules, page 4-10.
4.
Enter the Ship To location for the price break. You can select only locations for this
organization or locations for which no organization is defined.
5.
Enter the minimum Quantity that must to ordered to obtain this price break. The
shipment quantity is displayed as the default.
6.
Enter the Effective From date or date that this price break becomes effective.
7.
Enter the Effective To date or that this price is no longer effective after. This date
cannot be less than the date you entered in the Effective From date field.
8.
Enter the Break Price at this quantity. Purchasing calculates the Discount % for you.
9.
You can optionally enter a Discount % to have the Break Price calculated for you.
Related Topics
Entering Purchase Order Lines, page 4-46
4-74 Oracle Purchasing User's Guide
Entering Purchase Order Distributions
Use the purchase order Distributions window to enter distribution information for
purchase order shipments or to view distributions that Purchasing has automatically
created for you. You can enter multiple distributions per shipment line. You can also
enter information about paper requisitions in this window.
To enter purchase order distribution information:
1.
Navigate to the Distributions window by selecting the Distributions button in the
Shipments window. The Shipments window is accessed from the Purchase Orders
window. You begin in the Destination tabbed region.
2.
Enter the line Number for the distribution line. If you enter a new distribution line,
Purchasing displays the next sequential line number available. You can enter any
line number that does not already exist.
3.
The destination type determines the final destination of the purchased items.
Choose one of the following options:
•
Expense - The goods are delivered to the requestor at an expense location. The
destination subinventory is not applicable.
•
Inventory - The goods are received into inventory upon delivery. You can
choose this option only if the item is stock enabled in the ship-to organization.
Purchase Orders 4-75
•
Shop Floor - The goods are delivered to an outside processing operation defined
by Work in Process. You can choose this option only for outside processing
items.
4.
Enter the Requestor and Deliver To location for this distribution. If the destination
type is Inventory, you can also enter the Subinventory.
5.
Enter the Quantity (Amount, if using Oracle Services Procurement) of the purchase
order shipment that you want to charge to the Accounting Flexfield. The default
value comes from the quantity you enter in the Shipments window. If you decrease
the default quantity, Purchasing automatically defaults on the next distribution line
the total quantity you have not yet assigned to a distribution line.
6.
Enter the purchasing accounts. When you save your changes in this window,
Purchasing uses the Account Generator to automatically create the following
accounts for each distribution:
•
Charge: the account to charge for the cost of this item in the purchasing
operating unit
•
Accrual: the AP accrual account in the purchasing operating unit
•
Variance: the invoice price variance account in the purchasing operating unit
•
Destination Charge: the account to charge for the cost of this item in the
destination operating unit
•
Destination Variance: the invoice price variance account in the destination
operating unit
Note: The last two accounts are created only if the receiving
destination operating unit is different than the purchasing
operating unit and there is a transaction flow defined between the
two organizations.
If you are using encumbrance control, Purchasing also creates the following account
for each distribution:
•
Budget: the encumbrance budget account
The Account Generator creates these accounts based on predefined rules. See: Using
the Account Generator in Oracle Purchasing, page E-6.
If the destination type is Expense and you are charging an account in your
operating unit, the default charge account you enter in the Purchases Order
Preferences window overrides the charge account supplied by the Account
Generator. You can update the defaulted charge account.
4-76 Oracle Purchasing User's Guide
For outside processing lines, the cursor does not enter this field during initial entry,
since the Account Generator cannot build accounts until you have entered the
Resource Sequence in the Outside Processing window.
For Oracle Public Sector customers using the automatic offset accounting feature
the Charge Account will reflect the receiving inspection account based on the
Receipt Accounting setting in the Purchasing Options window. See: Defining
Purchasing Options, page 1-32.
7.
Override the tax Recovery Rate for taxable items.
The recovery rate is the percentage of tax that your business can reclaim for credit.
The recovery rate is based on the information on purchase order Shipments
window and the setup in Oracle E-Business Tax.
You can change the recovery rate if the profile option eBTax: Allow Override of
Recovery Rate is set to Yes. Depending on the setup in Oracle E-Business Tax, only
certain recovery rates may be allowed.
You can choose to use a different recovery rate for different distributions, even if
they use the same set of applicable tax.
For an overview of tax in Purchasing, see: Tax Information in Purchasing, page 4115.
8.
Enter the GL Date you want to use when you reserve your funds. You can enter a
GL Date only if you set up your financials system options to use encumbrance or
budgetary control for purchase orders. The default is the current date. See: About
Financials Options, Oracle Payables User's Guide. See: Budgetary Control and Online
Funds Checking, Oracle General Ledger User's Guide.
If you enter a date that belongs to two separate accounting periods, Purchasing
automatically creates a journal entry in the first accounting period that contains this
date. See: Controlling Purchasing Periods, page 1-80.
The Reserved check box indicates whether you successfully reserved funds for this
purchase order distribution. You reserve your distribution when you approve your
purchase order. You cannot change any purchase order distribution that you have
already encumbered unless you explicitly unreserve the funds. See: Online Funds
Availability Checking, page 4-5 See: About Financials Options, Oracle Payables
User's Guide See: Budgetary Control and Online Funds Checking, Oracle General
Ledger User's Guide.
To enter distribution detail information:
1.
Select the More tabbed region.
2.
The Online check box indicates whether this distribution is part of an on-line
requisition. If so, Purchasing displays the requisition number and line number.
If this distribution comes from an on-line requisition, Purchasing displays the
Requesting Org, Requisition Number, Line number, and you cannot update these
Purchase Orders 4-77
fields. If this distribution does not come from an on-line requisition, enter the paper
requisition number in this field. The default is the paper requisition number from
the Purchase Order Preferences window.
Purchasing displays the Budget Account, Accrual Account, and Variance Account
numbers supplied by the Account Generator. Buyers cannot update these fields as
they should be determined by the requesting department, but if you think they are
incorrect then return the requisition to the requester. See: Autocreate Purchase
Order Options, .
3.
Enter the Rate Date for the currency. Purchasing uses this date to obtain the
currency conversion rate from your conversion definitions. You cannot enter this
field when you edit a purchase order created in your base currency. See: Defining
Purchasing Options, page 1-32. See: Entering Daily Rates, Oracle General Ledger
User's Guide.
Note: The Rate Date is a required field for a foreign currency
purchase order, to complete the approval process.
4.
You can enter the conversion Rate between the foreign currency and the base
currency only when the rate type is User. If you entered a rate date for which a
conversion rate is defined, Purchasing displays that rate and you cannot change it.
To view tax information:
•
After you have saved the document: Select Manage Tax from the Action menu to
see the recoverable and nonrecoverable tax for each line and distribution. See:
Viewing Tax Information, page 4-116.
To enter outside processing information:
•
Select the Outside Services button to open the Purchase Order Outside Services
window. See: Entering Outside Services Information, page 4-79.
Project tabbed region:
•
If your organization has implemented Oracle Projects, Oracle Project
Manufacturing, or Oracle Grants use the Project tabbed region to enter additional
information for those products. See: Project Tab, page 3-46
Related Topics
Tools Menu Options, page 4-44
Inquire Menu Options, page 4-45
Entering Purchase Order Shipments, page 4-67
Changing Encumbered Documents, page 4-112
4-78 Oracle Purchasing User's Guide
Entering Outside Services Information
Use the Outside Services window to review and enter outside processing or outside
services information for document lines.
To enter outside processing information:
1.
Navigate to the Outside Services window by selecting the Outside Services button
in the Requisitions window and the Purchase Orders Distributions window when
you've selected a line type of Outside Processing. See: Entering Requisition Lines,
page 3-50. See: Entering Purchase Order Distributions, page 4-75.
2.
Enter the Job or repetitive Assembly that uses this outside processing operation. For
an assembly, you can also enter the production Line. Use this to choose a schedule
with the earliest first unit start date. Note: If this is an Enterprise Asset
Management controlled item, only work order information can be entered.
3.
Enter the operation Sequence number of the outside processing operation.
Purchasing displays the operation Code and the Department.
4.
Enter the Sequence number of the resource the outside processing operation uses.
Purchasing displays the resource UOM and Quantity. Purchasing also displays the
Unit Type and Assembly Quantity.
5.
Select the Done button to apply your entries and return to the window from which
you came.
To cancel your entries:
•
Select the Cancel button to cancel your entries and return to the window from
which you came.
Purchase Orders 4-79
Related Topics
Requisitioning Outside Process Items, Oracle Work in Process User's Guide
Creating Outside Processing Purchase Orders, Oracle Work in Process User's Guide
Entering Purchase Order Notification Controls
Use the Notification Controls window to enter notification controls for planned
purchase orders, contract purchase agreements, and blanket purchase agreements. For
these documents, you can establish expiration and release control notification
conditions and specify the number of days before the condition is met that you want to
be notified. When the notification conditions are met, Purchasing sends you an alert,
using Oracle Alert (or e-mail).
To enter notification controls:
1.
Select Notification Controls on the Tools menu in the Purchase Orders window to
open the Notification Controls window and display any existing controls. The
Notification Controls option is active on the menu only when there is no unsaved
information for the purchase order.
2.
Enter one of the following notification Conditions:
•
Amount Not Released - If you choose this condition, you can optionally specify
effective and expiration dates, but you must specify the amount not released.
•
Amount Released - If you choose this condition, you can optionally specify the
effective and expiration dates, but you must specify the amount released.
4-80 Oracle Purchasing User's Guide
•
Expiration - Before you can use this condition, you must have specified an
expiration date for the purchase order in the Details window. If you choose this
condition, you must enter an effective date, and you can optionally enter an
expiration date.
3.
Enter the Warning Delay. This is the number of days before the expiration date that
you want to be alerted. The warning delay is applicable only to the Expiration
condition and helps you calculate the effective date.
4.
Purchasing calculates the Effective Date based on your warning delay and the
expiration date, but you can change this date. The effective date is required for the
Expiration condition.
5.
Purchasing displays the Expiration Date from the Terms and Conditions region as
the default, but you can change this date.
Important: If you do not enter an expiration date and your
condition continues to be met, the alert will be issued forever.
Therefore, we recommend entry of an expiration date.
6.
The Percent field is applicable only when you have already entered an order line.
For the Amount Released (or Not Released) conditions, you can enter a percentage
of the order line total, and Purchasing calculates the amount.
7.
When the amount released (or not released) reaches the Amount you enter here,
Purchasing sends you an alert. If you have already entered an order line,
Purchasing calculates the percentage and displays it in the Percent field.
8.
Select the Done button to save your work and return to the Purchase Orders
window.
To cancel your entries:
•
Select the Cancel button to cancel your entries and return to the Purchase Orders
window.
Related Topics
Using Oracle Alert in Oracle Purchasing, page B-1
Entering Purchase Order Headers, page 4-40
Entering and Viewing Purchase Order Acceptances
Use the Acceptances window to view and enter purchase order acceptances from your
suppliers. The original copy of the purchase order you send to the supplier is a legal
Purchase Orders 4-81
offer to buy. A binding purchase contract does not exist until the supplier accepts your
offer either by performing the contract or formally accepting the offer by returning an
acceptance document to you.
You indicate on your standard purchase orders, purchase agreements, and releases
whether you require your suppliers to accept your orders by a specific date. Purchasing
notifies you in the Notifications Summary window of the orders for which the suppliers
have not responded by the acceptance due date.
To view acceptances:
•
Navigate to the Acceptances window by selecting Acceptances from the Tools
menu in the Purchase Orders, Releases, and Purchase Order Summary windows
when you do not have a purchase order open. Purchasing displays the Acceptances
window with all previously accepted purchase orders for review.
To enter acceptances:
1.
Navigate to the Acceptances window by selecting Acceptances from the Tools
menu in the Purchase Orders or Releases windows.
You can accept only purchase orders and releases that you approved at least once
and that are not closed.
2.
In the Action field, enter the results of your supplier follow-up. You can easily
record the type of follow-up you performed such as Follow-up telephone call,
Follow-up letter, or Fax follow-up. You can also use this field to record the outcome
of the follow-up such as Will call back, No answer, Schedule slippage, or Cannot
fulfill order.
3.
Enter the Revision number. The default is the current revision. Purchasing removes
the notification from the Notifications Summary window only when you record the
acceptance of the most recent revision.
4.
Enter the Action Date for the acceptance transaction. Today's date is the default, but
you can enter any date.
4-82 Oracle Purchasing User's Guide
5.
Enter the Accepted By person. Your name is the default.
6.
Enter the Role or title of the accepting person.
7.
Select Accepted to indicate that the supplier accepted the purchase order. If you
accept the most recent revision, Purchasing removes the acceptance requirement
and the acceptance date from your purchase order or release. Purchasing also
deletes the corresponding notification from the Notifications Summary window if
any late acceptance notification exists for this order.
8.
Enter an Acceptance Type for the acceptance. You can define your own acceptance
types, or use one of the following that Purchasing provides. See: Defining Lookup
Codes, page 1-54.
9.
•
Accepted All Terms - The supplier accepted all the terms of the purchase order.
•
On Schedule - The supplier agreed to meet the delivery dates on the purchase
order.
•
Unacceptable Changes - The supplier made modifications to the terms of the
purchase order that you do not find acceptable.
Click OK to save your entries.
To enter or view eSignature details:
•
If Oracle Procurement Contracts and Oracle Quality eRecords are implemented,
you can view the details of the electronic signatures from the Acceptances window
by selecting eSignature Details in the Tools menu.
The elctronic signature feature of Oracle Procurement Contracts is enabled for a
specific document and requires that both the supplier and the buyer provide
eSignatures before the document can be approved. Once the eSignatures have been
entered you must check Signatures Complete. See: Entering Purchase Order Details
Information, page 4-61.
Related Topics
Entering Purchase Order Headers, page 4-40
Entering Release Headers, page 4-83
Entering Releases
Entering Release Headers
Use the Releases window to enter, edit, and approve releases against blanket purchase
agreements or planned purchase orders.
Purchase Orders 4-83
To enter release headers:
1.
Navigate to the Releases window from the menu or by clicking New Release in the
Find Purchase Orders window.
2.
Select the Operating Unit for the release.
3.
Enter the PO number for the release you want to create. The list of values displays
all blanket and planned purchase order numbers that have been approved, the
document type, status, supplier, buyer, and effectivity date range (global
agreements are not available for releases). When you select a purchase order,
Purchasing displays the Supplier, Site, and Currency for that order. Purchasing also
displays the Status of the release and the current Total amount of the release.
Note: Purchasing displays a P-Card number if the purchase order
used one. A procurement card purchase order is created from a
iProcurement requisition that used a corporate credit card for the
purchase. This field displays if the profile option PO: Use P-Cards in
Purchasing is set to Yes. Only the last four digits of the procurement
card are displayed. Procurement cards can be used for items with a
Destination Type of Expense, for documents that do not contain a
Project number, and for standard purchase orders or releases only.
4.
Purchasing displays the next Release number available. Until you have saved your
release, you can change the release number to any number that does not already
exist.
4-84 Oracle Purchasing User's Guide
5.
If the Enforce Buyer Name option in the Purchasing Options window is set to Yes,
your name is displayed as the Buyer, and you cannot change this value. Otherwise,
you can enter the name of any buyer. See: Defining Control Options, page 1-33.
6.
Enter release shipment line information in the Shipments tabbed region. See:
Entering Purchase Order Shipments, page 4-67
To take approval actions:
•
Select the Approve button to open the Approve Documents window. See:
Submitting a Document for Approval, page 2-32.
To enter receiving control information:
•
Select the Receiving Controls button to open the Receiving Controls window. See:
Entering Purchase Order Receiving Controls, page 4-71.
To enter release distribution information:
•
Select the Distributions button to open the Distributions window. See: Entering
Release Distributions, page 4-92.
To view blanket purchase agreement information:
•
Select the Agreement button to view blanket agreement information for the release.
See: Entering Purchase Order Details Information, page 4-61.
Tools Menu Options
To enter and view acceptances:
•
Select Acceptances on the Tools menu to open the Acceptances window. See:
Entering and Viewing Purchase Order Acceptances, page 4-81.
To view supplier details:
•
Select View Supplier Address from the Tools menu to view the complete supplier
name and address for the release.
If budgetary controls are enabled you can unreserve encumbered funds for your
release. See: Online Funds Availability Checking, page 4-5
To release encumbered funds:
1.
Select Unreserve from the Tools menu.
2.
Enter the Unreserve Date.
3.
Check Use Document GL Date to Unreserve to use the document's distribution GL
dates for the funds reversal instead of the unreserve date.
4.
Click OK to reverse the the funds reservation on this document.
To cancel the release:
•
You can cancel an approved release by selecting Cancel from the Tools menu. See:
Purchase Orders 4-85
Document Control Options, page 2-41
To view action history:
•
Select View Action History on the Tools menu to open the Action History window.
See: Viewing Action History, page 10-1.
To enter preferences:
•
Select Preferences on the Tools menu. See: Entering Purchase Order Preferences,
page 4-37
Related Topics
Entering Release Shipments, page 4-86
Entering Release Distributions, page 4-92
Procurement Card Purchase Orders and Releases, page 4-117
Entering Release Shipments
Use the Shipments tabbed region to enter shipment lines for planned and blanket
releases and to edit shipments that Purchasing automatically generated for you. (See:
Automatic Release Generation, page 4-95) A purchase order shipment specifies the
quantity, ship-to location, date you want your supplier to deliver the items on a
purchase order line, and country of origin for the items.
To enter release shipment information:
1.
Navigate to the Shipments tabbed region in the Releases window.
The first tabbed region is the Shipments region. In addition to the enterable fields
discussed in the following steps, this region displays the UOM, the Originally
Promise date (if the Promised date has been changed, the original promised date is
displayed here), the Charge Account, the shipment Amount, and a check box to
indicate whether funds have been Reserved. See: Budgetary Control and Online
Funds Checking, Oracle General Ledger User's Guide.
4-86 Oracle Purchasing User's Guide
2.
Enter the line Number for the shipment line. If you enter a new shipment line,
Purchasing displays the next sequential line number available. You can enter any
line number greater than zero that does not already exist.
3.
Enter the source Line number. The list of values includes the item number, revision,
and description.
4.
For scheduled releases only, you can enter the source Shipment. This is the planned
purchase order shipment against which you want to issue a release. The details
from the shipment are used as defaults for the scheduled release shipment.
5.
Enter the ship-to Organization. If you picked a line with an item, you can pick only
organizations in which the item is defined. If you picked a revision number on the
purchase order line, the item revision must also be defined in the organization. For
scheduled releases (against planned purchase orders), you cannot change the
default organization from the planned purchase order shipment. Note that you
cannot update the organization once you have saved your work.
6.
Enter the Ship-To location for the shipment. You can pick any location that does not
have an organization or any location whose organization matches the organization
in the previous field. See: Purchase Order Defaulting Rules, page 4-10 For blanket
releases, Purchasing defaults the ship-to location from the Release Header zone. For
scheduled releases, Purchasing gets default information from the planned purchase
order shipment.
7.
Enter the Quantity (Amount, if using Oracle Services Procurement) for the
Purchase Orders 4-87
shipment. This value must be greater than zero.
8.
Enter the Price you want to use for this shipment. Purchasing displays the actual
price for the shipment from the purchase order line price for the item. The actual
price defaults from the purchase agreement line.
You can use list of values to choose purchase agreement price breaks. If your
purchase agreement has price breaks, the quantity entered here determines what
break price is defaulted into the Price field. The cursor does not enter this field
when you are editing an existing line.
If you allow price override for this purchase order line in the Purchase Orders
window, the release price cannot exceed the price limit specified for the line. If you
allow price override but did not enter a price limit, Purchasing does not check the
shipment price for the releases. If you do not allow price override, Purchasing
displays the shipment price from the purchase agreement and prevents you from
navigating to this field. This field can be defaulted from the purchase agreement
price breaks if you have entered a sufficient quantity.
Note: If you manually override the defaulted price, Oracle
Purchasing does not recalculate the price when pricing related
changes are made to the release.
9.
Enter the date and time that the supplier promised delivery of the items in the
Promised field.
10. Enter the Need By date and time when the requester needs the item. The default is
from the Purchase Order Preferences window.
If you use Purchasing with Master Scheduling/MRP, you must provide a need-by
date or promised date for shipments that correspond to purchase order lines with
Master Scheduling/MRP planned items. You must also provide a need-by date or
promised date for Inventory planned items. See: Overview of Implementing
Planning Recommendations, Oracle Master Scheduling/MRP and Supply Chain
Planning User's Guide.
11. Optionally choose or change the Note for Receiver.
The Note for Receiver is a note which will be displayed at the time of receipt for this
shipment.
The Note for Receiver displayed here defaults from the requisition line that this
release was created from. Otherwise, this field is blank.
12. Optionally choose or change the Country of Origin.
The Country of Origin is the country in which an item is manufactured.
For a scheduled release, the Country of Origin defaults from the planned purchase
4-88 Oracle Purchasing User's Guide
order. For a blanket release, the Country of Origin defaults from the Approved
Supplier List, if it is defined there. If not, it defaults from the supplier site in the
Supplier Sites window. Otherwise, this field is blank. You can leave it blank or
choose a country.
If you do not know the originating country, you can enter or change the Country of
Origin later on the receipt.
13. If you are a process manufacturing user and the Oracle Process Manufacturing
(OPM) application is installed, then the Oracle Purchasing for Process Inventory
functionality is enabled. If the selected purchasing organization is a process
organization, then the three process fields the Secondary UOM, Secondary
Quantity, and Grade are enabled. For more information on these fields see: Entering
OPM Line Information , page 3-56.
To display and enter more shipment information:
1.
Select the More tabbed region in the Releases window.
2.
Enter the Receipt Close Tolerance percent for your shipments. Purchasing
automatically closes a shipment for receiving if it is within the receiving closing
tolerance at the receiving close point. You need to set the receiving close point in the
Purchasing Options window. See: Defining Control Options, page 1-33
3.
Enter the Invoice Close Tolerance percent for your shipments. Purchasing
automatically closes a shipment for invoicing if it is within the invoicing closing
tolerance at billing, when Payables matches invoices to purchase orders or receipts.
See: Defining Control Options, page 1-33
4.
Select one of the following options for Match Approval Level:
•
Two-Way Matching: Purchase order and invoice quantities must match within
tolerance before the corresponding invoice can be paid.
•
Three-Way Matching: Purchase order, receipt, and invoice quantities must match
within tolerance before the corresponding invoice can be paid.
•
Four-Way Matching: Purchase order, receipt, accepted, and invoice quantities
must match within tolerance before the corresponding invoice can be paid.
If you enter an item, the default value for this field comes from the item information
at the organization level. If not defined there, the default comes from the item
information at the master level. If you do not enter an item, the default is from your
Purchasing Options. See: Receiving Controls, Options, and Profiles, page 9-7.
5.
Select an Invoice Match Option:
•
Purchase Order: Payables must match the invoice to the purchase order.
Purchase Orders 4-89
•
Receipt: Payables must match the invoice to the receipt.
Choose Receipt if you want to update exchange rate information on the receipt
or if you want your accounting to use exchange rate information based on the
receipt date. (If you use Periodic Costing, you must match to the receipt to
ensure accurate cost accounting.)
The Invoice Match Option defaults from the Supplier Sites window. You can
change the Invoice Match Option on the shipment until you receive against the
shipment.
Note: The Invoice Match Option and the Match Approval Level are
independent options. You can perform whichever Invoice Match
Option you want regardless of the Match Approval Level.
See: Entering Purchase Order Matched Invoices, Oracle Payables User Guide .
6.
Select Accrue at Receipt to indicate that the items on this purchase order line accrue
upon receipt. Shop Floor and Inventory destined items always accrue upon receipt,
and you cannot change this default. For expense items, if the Accrue Expense Items
flag in the Purchasing Options window is set to Period End, the items cannot accrue
upon receipt, and you cannot change the default. If the Accrue Expense Items flag is
set to At Receipt, the default is to accrue upon receipt, but you can change it to not
accrue upon receipt. See: Defining Accrual Options, page 1-39.
Important: If you are using Cash Basis Accounting, you should use
the Purchasing Options window to set the Accrue Expense Items
flag to Period End, and you should not select Accrue on Receipt in
this window.
7.
Select Firm to firm the shipment to indicate to Master Scheduling/MRP or your
manufacturing application that it should not reschedule this release shipment.
To display status information:
•
Select the Status tabbed region.
For each shipment, Purchasing displays the Status and the quantity Ordered,
Received, Cancelled, and Billed.
To display item information:
•
Select the Item tabbed region in the Releases window.
For each shipment, Purchasing displays the Item number, purchasing category,
item description, supplier item number, and the VMI checkbox.
To view drop ship information:
•
If the shipment is part of a drop ship order select the Drop Shop tabbed region.
4-90 Oracle Purchasing User's Guide
For each shipment, Oracle Purchasing displays Sales Order and Line Number,
Ordered Quantity, Shipped Quantity, Sales Order Status, Ship To Customer Name,
and Ship To Customer Contact.
•
If the shipment is part of a drop ship order you may also view the sales order in
Oracle Order Management by selecting View Sales Order from the Tools menu.
To take approval actions:
•
Select the Approve button to open the Approve Documents window. See:
Submitting a Document for Approval, page 2-32.
To enter receiving control information:
•
Select the Receiving Controls button to open the Receiving Controls window. See:
Entering Purchase Order Receiving Controls, page 4-71.
To view and enter agreement details information:
•
Select the Agreement button to view and enter blanket agreement information for
the release. See: Entering Purchase Order Details Information, page 4-61.
To enter distribution information:
•
Select the Distributions button to open the Distributions window. See: Entering
Release Distributions, page 4-92.
Tools Menu Options
To recalculate prices:
•
If you have manually changed the price and then you have changed price related
attributes of a line (for example: ship to organization or need-by date), you can have
Oracle Purchasing recalculate the price by selecting Recalculate Price from the Tools
menu.
To cancel the release shipment:
•
You can cancel an approved release shipment by selecting Cancel from the Tools
menu. See: Document Control Options, page 2-41
To view tax information:
•
Select Manage Tax from the Tools menu to see recoverable and nonrecoverable tax
details for each shipment and distribution. See: Viewing Tax Information, page 4116.
Related Topics
Tools Menu Options, page 4-91
Entering Release Headers, page 4-83
Entering Release Distributions, page 4-92
Entering Purchase Order Preferences, page 4-37
Purchase Orders 4-91
Viewing Action History, page 10-1
Processing Periodic Acquisition Costs, Oracle Cost Management User's Guide
Entering Release Distributions
Use the release Distributions window to enter distribution information for release
shipments or to view distributions that Purchasing has automatically created for you.
You can enter multiple distributions per shipment line. You can also enter information
about paper requisitions in this window.
To enter release distribution information:
1.
Navigate to the Distributions window by selecting the Distributions button in the
Releases window.
2.
Enter the line Number for the distribution line. If you enter a new distribution line,
Purchasing displays the next sequential line number available. You can enter any
line number greater than zero that does not already exist.
3.
For scheduled releases only, enter the Source (the planned purchase order
distribution you want to release).
4.
The Destination Type determines the final destination of the purchased items.
Choose one of the following options:
•
Expense - The goods are delivered to the requestor at an expense location. The
destination subinventory is not applicable.
•
Inventory - The goods are received into inventory upon delivery. You can
choose this option only if the item is stock enabled in the ship-to organization.
4-92 Oracle Purchasing User's Guide
•
Shop Floor - The goods are delivered to an outside processing operation defined
by Work in Process. You can choose this option only for outside processing
items. If Enterprise Asset Management is installed, you can use this destination
for one-time (description based) and non-stocked items to be delivered to a
maintenance work order location.
5.
Enter the Requestor and Deliver To location for this distribution. If the destination
type is Inventory, you can also enter the Subinventory.
6.
Enter the Quantity (Amount, if using Oracle Services Procurement) of the purchase
order shipment that you want to charge to the Accounting Flexfield. The default
value comes from the quantity you enter in the Shipments region. If you decrease
the default quantity, Purchasing automatically defaults on the next distribution line
the total quantity you have not yet assigned to a distribution line. This quantity is
printed on the release.
7.
Enter the Charge Account. When you save your changes in this window,
Purchasing uses the Account Generator to automatically create the following three
accounts for each distribution:
•
Charge: the account to charge for the cost of this item
•
Accrual: the AP accrual account
•
Variance: the invoice price variance account
If you are using encumbrance control, Purchasing also creates the following
account for each distribution:
•
8.
Budget: the encumbrance budget account
The Account Generator creates these accounts based on predefined rules. See: Using
the Account Generator in Oracle Purchasing, page E-6.
You cannot create or update these accounts manually unless the destination type is
Expense. In this case, the default charge account you enter in the Purchases Order
Preferences window overrides charge account supplied by the Account Generator,
and you can update the charge account in this zone.
For outside processing lines, the cursor does not enter this field during initial entry,
since the Account Generator cannot build accounts until you have entered the
Resource Sequence in the Outside Services window.
9.
Override the tax Recovery Rate for taxable items.
The recovery rate is the percentage of tax that your business can reclaim for credit.
The recovery rate is based on the release shipment and the setup in Oracle
E-Business Tax .
Purchase Orders 4-93
You can change the recovery rate if the profile option eBTax: Allow Override of
Recovery Rate is set to Yes. Depending on the setup in Oracle E-Business Tax, only
certain recovery rates may be allowed..
You can choose to use a different recovery rate for different distributions, even if
they use the same set of applicable tax.
For an overview of tax in Purchasing, see: Tax Information in Purchasing, page 4115.
10. Enter the GL Date you want to use when you reserve your funds. You can enter a
GL Date only if you set up your financials system options to use encumbrance or
budgetary control for purchase orders. The default is the current date. See: About
Financials Options, Oracle Payables User's Guide. See: Budgetary Control and Online
Funds Checking, Oracle General Ledger User's Guide.
If you enter a date that belongs to two separate accounting periods, Purchasing
automatically creates a journal entry in the first accounting period that contains this
date. See: Controlling Purchasing Periods, page 1-80.
The Reserved check box indicates whether you successfully reserved funds for this
purchase order distribution. You reserve your distribution when you approve your
purchase order. You cannot change any purchase order distribution that you have
already encumbered unless you explicitly unreserve the funds in the Approve
Document window. See: Submitting a Document for Approval, page 2-32. See:
About Financials Options, Oracle Payables User's Guide See: Budgetary Control and
Online Funds Checking, Oracle General Ledger User's Guide.
To enter distribution detail information:
1.
Select the More tabbed region.
The Online check box indicates whether this distribution is part of an on-line
requisition. If so, Purchasing displays the requisition number and line number.
2.
If this distribution comes from an on-line requisition, Purchasing displays the
Requisition Number and Line number, and you cannot update this field. If this
distribution does not come from an on-line requisition, enter the paper requisition
number in this field. The default is the paper requisition number from the Purchase
Order Preferences window.
Purchasing displays the Budget Account, Accrual Account, and Variance Account
numbers supplied by the Account Generator.
3.
Enter the Rate Date for the currency. Purchasing uses this date to obtain the
currency conversion rate from your conversion definitions. You cannot enter this
field when you edit a purchase order created in your base currency. See: Defining
Purchasing Options, page 1-32. See: Entering Daily Rates, Oracle General Ledger
User's Guide.
4.
You can enter the conversion Rate between the foreign currency and the base
4-94 Oracle Purchasing User's Guide
currency only when the rate type is User. If you entered a rate date for which a
conversion rate is defined, Purchasing displays that rate and you cannot change it.
Project tabbed region
•
If your organization has implemented products which depend on tracking project
related information, you can use the Project tabbed region to enter additional
information for those products. For instructions see: Project Tab, page 3-46
To view tax information:
•
Select Manage Tax from the Tools menu to see recoverable and nonrecoverable tax
details for each shipment and distribution. See: Viewing Tax Information, page 4116.
Related Topics
Release Tools Menu Options, page 4-91
Entering Release Headers, page 4-83
Entering Release Shipments, page 4-86
Viewing Action History, page 10-1
Entering Purchase Order Preferences, page 4-37
Automatic Release Generation
You can minimize purchase order administrative costs by automatically creating
releases for both manually entered and imported requisitions.
Purchasing provides you with the features you need to satisfy the following basic
needs. You should be able to:
•
Automatically create a release when you source your items from a single supplier
using a single blanket purchase agreement.
•
Specify for each blanket agreement whether you want to create approved releases
automatically, create releases automatically but require manual approval, or require
the use of the AutoCreate Documents window to create releases.
•
Run the Create Release process automatically as part of the Requisition Import
process.
Major Features
Flexible Sourcing Definitions
When you are defining your sourcing rules and Approved Supplier List entries, you can
Purchase Orders 4-95
also define how you want your releases generated. Automatic Release automatically
converts approved requisition lines to approved blanket purchase releases based on the
sourcing rules and Approved Supplier List entries. Automatic Release/Review
automatically converts approved requisition lines to blanket releases. Buyers can then
review and modify these releases before approving them. Release Using Autocreate lets
buyers use the AutoCreate Documents window to collect, review, and optionally
modify requirements before creating and approving their releases. See: Autocreating
Documents Overview, page 6-1.
You can define a different release generation method for each item and supplier. For
frequently purchased items, you can set up Purchasing to automatically create and
approve releases. For expensive or critical items, you can let Purchasing create the
releases, while you review and approve them in a separate step. For infrequent
purchases, your buyers can take more control by using the AutoCreate Documents
window to combine requests.
You must set up a suggested blanket purchase agreement in the Approved Supplier List
window so that Purchasing can use the price and ship-to information when it is
generating releases against the agreement. See: Defining the Supplier/Item Attributes,
page 5-43.
Generate Releases Automatically
The Create Releases process generates releases when the following criteria are met:
•
The requisition is sourced to an approved blanket purchase agreement that is not
on hold
•
The Approved Supplier List entry for the item, supplier, and agreement must be
active, and the Release Generation method must be Automatic Release or
Automatic Release/Review in the Approved Supplier List window
•
The source agreement is still active and the release will not put the agreement over
the amount limit
•
The release amount must be greater than the minimum line release amount
•
The supplier on the source agreement is active and not on hold
•
The requisition line is Approved (and Reserved, if requisition encumbrance is
active)
•
The requisition line is not cancelled, closed, or already on a purchase order
•
The line type of the requisition line is quantity based
Note: If the release generation method in the Approved Supplier List
4-96 Oracle Purchasing User's Guide
window is Automatic Release or Automatic Release/Review, then the
Create Releases process creates the release. If the release generation
method is Release Using AutoCreate, then the PO Create Documents
workflow tries to create the release; if it cannot, then you must use the
AutoCreate Documents window to create the release.
If the release generation method is Automatic Release, the process sets
the status to Approved and updates the action history. Otherwise, the
process sets the status to Incomplete and updates the notifications.
Purchasing automatically creates releases for requirements entered by any source: Work
in Process, Master Scheduling/MRP, Inventory Planning, purchase requisitions, or
external systems.
For foreign currency blanket purchase agreements, the automatic release process uses
the rate on the agreement as the default rate for the release and translates the functional
unit price on the requisition into the foreign currency price. Automatically generated
releases use the price retrieved by sourcing, which is price break sensitive but does not
consider the quantity already released against the blanket purchase agreement.
The Create Releases process creates a release for each source blanket purchase
agreement, with a release shipment for each requisition line and a release distribution
for each requisition distribution. If release archiving is set to Approve, the process
updates the archive table for the release, shipments, and distributions. See: Create
Releases Process, page 12-5.
If you've set up tax in Oracle E-Business Tax, the appropriate taxes automatically
default onto the release shipments created by the Create Release process. See: Tax
Information in Purchasing, page 4-115.
Variable Release Generation Frequency
You can determine how often Purchasing creates releases by using the Submit Requests
window to set the Create Releases process to run automatically at any frequency you
desire. You can also use the Submit Requests window to run the process manually.
Optionally, you can set the profile PO: Release During ReqImport to create releases each
time you run the Requisition Import process. For example, when you implement
planned orders as requisitions in the MRP Planner Workbench, you can automatically
create the releases at the same time you create the requisitions. As part of the
Requisition Import process, Purchasing automatically creates (and optionally approves)
releases for all blanket-sourced, approved requisitions, not just those created by the
Requisition Import run.
See Also
AutoCreate Documents Overview, page 6-1
Purchase Orders 4-97
Workflow for Creating Purchase Orders or Releases, page E-161
Profile Options in Purchasing, page C-1
Automatic Sourcing, page 5-24
Create Releases Process, page 12-5
Requisition Import Process, page 12-27
Submitting a Request, Oracle Applications System Administrator's Guide
Copying Purchase Orders
You can copy the following purchase order types from one document to the other:
From
To
Standard purchase order
Standard purchase order
Blanket purchase agreement
Blanket purchase agreement
Blanket purchase agreement
Request for quotation
Blanket purchase agreement
Global blanket purchase agreement
Planned purchase order
Planned purchase order
Contract purchase agreement
Contract purchase agreement
Contract purchase agreement
Request for quotation
Contract purchase agreement
Global contract purchase agreement
Bid quotation (Bid quotation class)
Standard or planned purchase order
Self-defined Bid quotation (Bid quotation class)
Standard or planned purchase order
Catalog or Standard quotation (Catalog quotation
class)
Blanket purchase agreement
Self-defined Catalog or Standard quotation (Catalog
quotation class)
Blanket purchase agreement
Global blanket purchase agreement
Global blanket purchase agreement
4-98 Oracle Purchasing User's Guide
From
To
Global contract purchase agreement
Global contract purchase agreement
For example, if you want to renew a blanket purchase agreement that contains
hundreds of lines, you can copy the previous agreement to a new agreement and
change the effectivity dates.
Important: Even though a document is listed in the above table you
may be restricted from copying it due to security settings, line type
restrictions, or other restrictions. Oracle Purchasing provides an error
message when you attempt a restricted copy.
To copy documents:
1.
Query the document you want to copy from the Purchase Orders, Purchase Order
Summary, or Quotations windows.
2.
With the document selected, choose Copy Document from the Tools menu.
The source document type and number is displayed in the From region of the Copy
Document window. If you are copying a global agreement the Global checkbox will
be checked.
Purchase Orders 4-99
3.
Select an eligible To Document Type.
You can change the To Document Type only if you're copying from a bid class
quotation, a blanket purchase agreement, or a contract purchase agreement.
If you select a blanket purchase agreement or a contract purchase agreement and
the from document is a global agreement you can not change the Global box.
4.
Select other document options if needed.
Document Number: Enter a document number only if you use manual numbering. If
you use automatic numbering, a document number will be created for you after
you choose OK. You cannot use the Copy Documents window to modify
documents by copying from one document to another with the same document
number.
Copy Attachments: Check this box to copy an attachment from any level of the
document.
Copy Blanket Price to RFQ: Check this box to copy the purchase price to the target
price when copying a blanket agreeement to an RFQ (request for quotation).
4-100 Oracle Purchasing User's Guide
5.
6.
If Oracle Procurement Contracts is implemented you can select the source for
Contract Terms (copy clauses and deliverables):
•
Copy Latest Clauses from Library: Check this box to copy the most recent version
of clauses from the library.
•
Copy Current Clauses from Document: Check this box to copy the clauses as they
exist in the From document.
•
Do Not Copy Contract Terms: Check this box to copy the document with no
contract terms.
Choose OK.
Purchasing creates and displays the new document. A copied document has similar
restrictions regarding modifications as a new document that has been saved. The
document is an exact copy of the original except for the Promised By and Need By
dates; if these dates are past dates, they change to today's date on the new
document. Effectivity dates, if any, do not change.
If you use encumbrance accounting, GL dates are not be copied and default as
today's date on the new document.
If you are copying a cancelled document, the Note to Supplier field will be blank.
This is because a cancelled document changes the Note to Supplier to an
explanation that the document was cancelled. Therefore, when you copy the
cancelled document, the Note to Supplier is left blank.
7.
Modify the document if you need to.
When you copy a quotation to a purchase order, project and task information from
the quotation, if any, is copied to the purchase order distribution when you create
the distribution or save the purchase order. (This is because project information is
associated with the quotation line, but must be associated with the distribution on
the purchase order.)
Information from the copied document overrides any information in the purchase
order preferences, if you are copying to a purchase order.
8.
Save and approve the document.
If information in the document you have just copied is invalid or outdated-for
example, if a supplier or account is inactive or invalid-a message window appears
after you choose Approve. Use this window to help you identify and correct invalid
or outdated fields in the new document you're creating. You cannot approve the
document until you update these fields appropriately.
Related Topics
Defining Document Types, page 1-66
Purchase Orders 4-101
Types of Quotations and RFQs, page 5-5
Copying Quotations from RFQs, page 5-74
Document Revision Numbering
You can create multiple revisions of your purchasing documents (planned and standard
purchase orders and blanket and contract purchase agreements). Use the Document
Types window to set whether each of these documents is archived upon approval or
upon printing. All revisions begin at 0, and Purchasing increments this revision number
by 1 when you make changes to controlled information and the current revision
number is equal to the archived number. As a result, the first revision that you print
might not be 0 if you are archiving on approval. See: Defining Document Types, page 166.
The following examples illustrate the difference between archiving on approval and on
printing:
Archiving On Approval
Action
Archive Rev
Current Rev
Step 1. Create purchase order
None
0
Step 2. Approve purchase order
0
0
Step 3. Change controlled information
0
1
Step 4. Approve purchase order
1
1
Step 5. Print purchase order
1
1
Action
Archive Rev
Current Rev
Step 1. Create purchase order
None
0
Step 2. Approve purchase order
None
0
Step 3. Change controlled information
None
0
Archiving On Print
4-102 Oracle Purchasing User's Guide
Action
Archive Rev
Current Rev
Step 4. Approve purchase order
None
0
Step 5. Print purchase order
0
0
Step 6. Change controlled information
0
1
Step 7. Approve purchase order
0
1
Step 8. Change controlled information
0
1
Step 9. Print purchase order
1
1
Document Revision Rules
The following tables describe the additions and changes that cause Purchasing to
increment document revision numbers in each of the document components:
Header
Information
Standard
Planned
Blanket
Contract
Release
Buyer
X
X
X
X4
X
Contact
X
X
X
X
Confirm
X
X
X
X
Ship-To
X
X
X
X
Bill-To
X
X
X
X
Payment
Terms
X
X
X
X
Freight
Carrier / Ship
Via
X
X
X
X
FOB
X
X
X
X
Purchase Orders 4-103
Header
Information
Standard
Planned
Blanket
Contract
Freight
Terms
X
X
X
X
Brief Note to
Supplier
X
X
X
X
Acceptance
Required
X
X
X
X4
4X
Acceptance
Due Date
X
X
X
X
X
Amount
Limit
X
X
X
Effective Date
X
X
X
Expiration
Date
X
X
X
X
X
X
X
X
Cancel Flag
X
Amount
Agreed
Release
Release
Number
X
Release Date
X
Confirming
Order
X
Oracle
Procurement
Contracts:
Contract
Terms
X
4-104 Oracle Purchasing User's Guide
X
X
X
X
X
X
Line
Information
Standard
Planned
Blanket
Unit Price
X
X
X
Line Number
X
X
X
Item
X
X
X
Item Revision
X
X
X
Item
Description
X
X
X4
Payment
Terms
X
X
X
Quantity
X
X
X
Unit of
Measure
X
X
X
Source
Quotation
Header
X
X
X
Source
Quotation
Line
X
X
X
Hazard Class
X
X
X
UN Number
X
X
X
Contract
Number
X
X
X
Supplier Item
Number
X
X
X
Brief Note to
Supplier
X
X
X
Price Type
X
X
X
Contract
Release
Purchase Orders 4-105
Line
Information
Standard
Planned
Blanket
Quantity
Agreed
X
Amount
Agreed
X
Contract
Release
Closed Code
X
X
X
X
X
Cancel Flag
X
X
X
X
X
Contract
Release
Ship-To
Location
X
Quantity
X
Break Price
X
Price Break
Number
X
X
X
Shipment
Information
Standard
Planned
Blanket
Shipment
Number
X
X
X
Ship-To
X
X
X
Quantity
X
X
X
Promise Date
X
X
X
Need-By
Date
X
X
X
Last
Acceptance
Date
X
X
X
4-106 Oracle Purchasing User's Guide
Shipment
Information
Standard
Planned
Taxable
X
X
Blanket
Contract
Release
X
Shipment
Price
X
Cancel Flag
X
X
X
Distribution
Information
Standard
Planned
Quantity
X
X
X
Requestor
X
X
X
Distribution
Number
X
X
X
Blanket
Contract
Release
Document Reapproval Rules
Documents are unapproved when you add or change specific information, regardless of
whether the revision is incremented. Almost all changes that cause the revision to be
incremented also unapprove the document, as does placing the document on hold.
However, if you change the line level Brief Note to Supplier, cancel the document or its
entities, or change the Firm Demand flag or receiver note, the document does not
require reapproval.
Controlled changes unapprove either the document header alone, or both the header
and its shipments. However, you can continue to receive against approved shipments
even when the header is unapproved.
You can also control whether-or how much of-a revision (for example, to Quantity)
requires the document to undergo the entire approval process or to be instantly
approved. See: Workflow Processes for Approving Change Orders, page E-133.
The following tables describe the additions and changes you can make that cause
Purchasing to unapprove a document.
Purchase Orders 4-107
Header Changes Unapproves Header
Header
Information
Standard
Planned
Blanket
Contract
Release
Buyer
X
X
X
X
X
Contact
X
X
X
X
Confirm
X
X
X
X
Ship-To
X
X
X
X
Bill-To
X
X
X
X
Payment
Terms
X
X
X
X
Ship via
X
X
X
X
FOB
X
X
X
X
Freight
Terms
X
X
X
X
Brief Note to
Supplier
X
X
X
X
Acceptance
Required
X
X
X
X
X
Acceptance
Due Date
X
X
X
X
X
Amount
Limit
X
X
X
Effective Date
X
X
X
Expiration
Date
X
X
X
4-108 Oracle Purchasing User's Guide
Header
Information
Standard
Planned
Amount
Agreed
Blanket
Contract
Release
X
Release
Number
X
Release Date
4
Oracle
Procurement
Contracts:
Contract
Terms
X
X
X
Contract
Line Changes Unapproves Header
Line
Information
Standard
Planned
Blanket
Unit Price
X
X
X
Line Number
X
X
X
Item
X
X
X
Item Revision
X
X
X
Item
Description
X
X
X
Item
Category
X
X
X
Quantity
X
X
X
Unit of
Measure
X
X
X
Release
Purchase Orders 4-109
Line
Information
Standard
Planned
Blanket
Source
Quotation
Header
X
X
X
Source
Quotation
Line
X
X
X
Hazard Class
X
X
X
Contract
Number
X
X
X
Supplier Item
Number
X
X
X
UN Number
X
X
X
Price Type
X
X
X
Price Limit
X
Quantity
Agreed
X
Amount
Agreed
X
Brief Note to
Supplier
X
X
X
Promised
Date
X
X
X
Need-By
Date
X
X
X
Expiration
Date
4-110 Oracle Purchasing User's Guide
X
Contract
Release
Line
Information
Standard
Planned
Blanket
Capital
Expense
X
X
X
Contract
Release
Contract
Release
Contract
Release
Price Break Changes Unapproves Header
Price Break
Standard
Planned
Blanket
Ship-To
Location
X
Quantity
X
Break Price
X
Discount
X
Shipment Changes Unapproves Header and Shipment
Shipment
Standard
Planned
Blanket
Shipment
Number
X
X
X
Ship-To
X
X
X
Quantity
X
X
X
Promise Date
X
X
X
Need-By
Date
X
X
X
Last
Acceptance
Date
X
X
X
Purchase Orders 4-111
Shipment
Standard
Planned
Taxable
(Header only)
X
X
Blanket
Contract
X
Shipment
Price
Sales Order
Update Date
(Drop Ship)
Release
X
X
X
Distribution Changes Unapproves Header and Shipment
Distribution
Standard
Planned
Blanket
Contract
Release
Distribution
Number
(Header
Only)
X
X
X
Quantity
X
X
X
Requestor
(Header
Only)
X
X
X
Charge
Account
X
X
X
Subinventory
X
X
X
Changing Encumbered Documents
You can make changes to a purchase order for which funds have already been reserved
(or encumbered). You do this by temporarily reversing the encumbrance the document,
making the desired changes, and reserving the document again. The Unreserve action
(reversing the encumbrance) takes place at the header level only; it affects all lines on a
purchase order, and changes the document's status to Requires Reapproval.
4-112 Oracle Purchasing User's Guide
Note: If the appropriate approver modifies an encumbered requisition,
Purchasing unreserves the requisition automatically.
To make changes to an encumbered purchase order:
1.
Choose the Approve button.
The Approve Document window appears.
2.
Select Unreserve.
The Unreserve option is available only if funds are currently reserved for at least
one line in your document.
3.
Enter an Unreserve Date that falls within an open reserve period.
4.
Choose OK.
5.
Make your changes to the document and choose Approve again.
6.
In the Approve Document window that appears, select Reserve to reserve funds
again for the document.
7.
Select Submit for Approval and choose OK to resubmit the document for approval.
Related Topics
Submitting a Document for Approval, page 2-32
Document Reapproval Rules, page 4-107
Overview of Encumbrance Accounting, Oracle General Ledger User's Guide
Drop Shipments
Oracle Order Management and Oracle Purchasing integrate to provide drop shipments.
Drop shipments are orders for items that your supplier ships directly to the customer
either because you don't stock or currently don't have the items in inventory, or because
it's more cost-effective for the supplier to ship the item to the customer directly.
Drop shipments are created as sales orders in Order Management. The Purchase
Release concurrent program or workflow in Order Management creates rows in the
Requisition Import tables in Purchasing. Then Purchasing's Requisition Import process
creates the requisitions. Drop shipments are marked with the Source Type of External in
Order Management and Supplier in Purchasing.
Integration between Oracle Purchasing and Oracle Order Management enables you to
monitor the details and status of the drop shipment from the purchase order. Details of
the drop shipment are included in the purchase order sent to the supplier. Changes to
Purchase Orders 4-113
the sales order in Order Management are automatically reflected on the documents in
Oracle Purchasing.
Changes to a purchasing document that references a drop shipped sales order line are
not allowed. Examples of changes in Oracle Purchasing that are not allowed are
freezing, placing on-hold, and closing for receiving or invoicing of purchase order
shipment information. You can cancel or finally close a partially filled drop shipment
and the remaining quantity is placed on a requisition. Cancellation of a requisition line
already on a sales order is not permitted.
When the drop shipment has been sent to the customer, the supplier can confirm the
shipment through a phone call, an invoice, or an Electronic Data Interchange (EDI)
document, such as an Advance Shipment Notice (ASN).
When you receive confirmation of a drop shipment, create a receipt against the
shipment, even though you have not received the item physically (because your
customer has received it directly). Even if your supplier sends an invoice, create the
receipt for it. This creates inbound and outbound material transactions in your system
for accounting purposes. You can also automatically create a receipt and delivery
transaction against the drop shipment
Drop shipments support a destination type of expense or inventory only. Drop
shipments only support a receipt routing of direct delivery.
You can handle returns of drop shipments using standard Order Management or
Purchasing functionality. There are different ways you may want to handle returns
depending on whether the customer returned the item to you or directly to the supplier.
Note: You should not drop-ship internal sales orders.
See the section Drop Shipments and the section Drop-Ship Order Flow in the Oracle
Order Management User's Guide.
Drop Shipments Across Business Units
Drop shipments across business units, also known as international drop shipments, is
supported under the Oracle Center-Led Procurement flow. See: Center-Led
Procurement Setup, page 1-78.
Related Topics
Drop-Ship Return Flow, Oracle Order Management User's Guide
Advanced Shipment Notices (ASNs), page 9-15
Returns, page 9-66
Entering Receipt Header Information, page 9-29
Entering Receipt Lines, page 9-30
4-114 Oracle Purchasing User's Guide
Requisition Import Process, page 12-27
Tax Information in Purchasing
Tax information defaults onto requisitions, purchase orders, and blanket releases only if
your administrator has completed tax setup in Oracle E-Business Tax. Tax applicability
rules along with attributes from the transaction are used in determining the tax for the
transaction. For example, you can associate a tax with a ship-to location.
Depending on tax setup, you can override the recovery rate if the profile option eBTax:
Allow Override of Tax Recovery Rate is set to Yes.
If you use partially recoverable tax, you can view the recoverable and nonrecoverable
tax for each shipment and distribution by choosing Manage Tax from the Actions or
Tools menu.
Tax Attributes and Rules
You can set up Oracle E-Business Tax to default tax attributes and determine tax
applicability in Oracle Purchasing based on your business needs. See: Setting Up Taxes,
Oracle E-Business Tax User Guide.
How Tax Defaults Affect Purchasing Documents
The tax attributes and rules you set up in E-Business Tax operate on transactions in the
following windows and processes in Oracle Purchasing:
•
Shipments window for standard and planned purchase orders
•
Requisition lines in the Requisitions window
•
Purchase order line shipments created by the AutoCreate Documents window
•
Shipments tabbed region in the Releases window (for blanket releases)
•
Release shipments created by the Create Releases process
Recovery Rate
The tax recovery rate defaults on Oracle Purchasing documents are based on the
attributes and rules you set up in E-Business Tax. You can view the tax recovery rate in
the Manage Tax window. Override it using the Recovery Rate field is in the following
windows:
•
Requisition Distributions (for purchase requisitions)
•
Purchase order Distributions (for planned and standard purchase orders)
Purchase Orders 4-115
•
Release Distributions
The recovery rate is the percentage of tax your business can reclaim for credit. The
nonrecoverable portion of the tax is included in the following:
•
Encumbrance accounting and receipt or period-end accrual accounting
•
Approval limit amounts
See: Overview of Receipt Accounting, page 9-86.
Related Topics
Setting Up Taxes, Oracle E-Business Tax User Guide
Setting Up Tax Recovery Rates, Oracle E-Business Tax User Guide
Viewing Tax Information, page 4-116
Entering Taxes on Invoices, Oracle Payables User's Guide
Viewing Tax Information
Use the Manage Tax window to view the total recoverable and non-recoverable tax, as
well as tax information for each transaction line. When you enter or change tax
attributes on a line or change the Recovery Rate on a distribution, the tax information in
the Manage Tax window is recalculated once you save the document.
Use this window to view, not change, tax information. To change tax information,
change the tax attributes on the Additional Tax Information window or the Recovery
Rate in the document entry window if the profile options eBTax: Allow Override of Tax
Code and eBTax: Allow Override of Tax Recovery Rate are set to Yes, if funds for the
purchase order or release are not currently reserved (if you use encumbrance
accounting), and if the shipment has not yet been received.
To view tax details:
•
Choose Manage Tax from the Actions or Tools menu, from the Requisitions,
Purchase Orders, or Releases windows, or their corresponding Shipments or
Distributions windows.
Related Topics
Tax Defaults in Purchasing, page 4-115
Setting Up Taxes, Oracle E-Business Tax User Guide
Setting Up Tax Recovery Rates, Oracle E-Business Tax User Guide
Tax Information in Purchasing,
4-116 Oracle Purchasing User's Guide
Procurement Card Purchase Orders and Releases
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, page 1-83.
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.
Purchase Orders 4-117
•
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, Oracle e-Commerce Gateway User's Guide
.
Approval
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.
Receiving
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.
Invoicing
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.)
4-118 Oracle Purchasing User's Guide
•
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.
Procurement Card Integration, Oracle Payables User's Guide
See: P-Cards, Oracle iProcurement Implementation Guide.
Purchase Orders 4-119
5
Supply Base Management
Overview of Sourcing, RFQs, and Quotations
Purchasing provides you with request for quotation (RFQ), and quotation features to
handle your sourcing needs. You can create an RFQ from requisitions, match supplier
quotations to your RFQ, and automatically copy quotation information to purchase
orders. Purchasing provides complete reporting to control your requests for quotations
and evaluate supplier responses.
•
Identify requisitions that require supplier quotations and automatically create a
request for quotation.
•
Create a request for quotation with or without approved requisitions so that you
can plan ahead for your future procurement requirements.
•
Record supplier quotations from a catalog, telephone conversation, or response
from your request for quotation. You can also receive quotations electronically.
•
Review, analyze, and approve supplier quotations that you want available to
reference on purchase orders and requisitions. You should be able to evaluate your
suppliers based on quotation information.
•
Receive automatic notification when a quotation or request for quotation
approaches expiration.
•
Review quotation information on-line when creating purchase orders or
requisitions and copy specific quotation information to a purchase order or
requisition.
•
Identify a supplier that you want to use only for receiving RFQs and quotations.
You can later be able to access purchase history to help you decide if the quotations
are acceptable.
Supply Base Management 5-1
•
Hold all purchasing activity on a supplier at any time. You can still match invoices
to approved purchase orders or receipts for this supplier. You can release a supplier
hold at any time.
•
Create, change, and review supplier information on-line. You can enter supplier site
information, supplier contacts, and supplier-specific delivery information.
•
Review the purchase history for a specific item. You can identify the suppliers you
used in the past, quantities you ordered, and pricing information. You can match
this information to specific purchase orders.
•
Simplify the sourcing of commonly purchased items. You can define requisition
templates for your commonly purchased items. Requestors can use these
requisitions templates to create simple, pre-sourced requisitions.
•
Source the items for which you negotiated purchase agreements automatically. If
you created sourcing rules and Approved Supplier List entries for the items,
supplier information is entered automatically in the Requisitions window when
you create requisitions. You can also place supplier information for items onto
blanket purchase order releases.
•
Specify planning constraints, such as lead time, minimum order quantity, or fixed
lot multiples, for each supplier site for an item so that if a supplier cannot currently
meet your demand, Supply Chain Planning automatically uses another supplier
that you specify. See: Defining the Supplier/Item Attributes, page 5-43.
Major Features
Electronically Received
Catalog Information
You can receive price/sales catalog information
electronically from your supplier through the Purchasing
Documents Open Interface. The information is imported
directly as blanket purchase agreement lines or catalog
quotations. See: Receiving Price/Sales Catalog Information
Electronically, page 5-18.
Flexible Document Numbers
Purchasing identifies each RFQ or quotation with a unique
document number. You decide whether you want to enter
document numbers manually or have the numbers
assigned automatically.
Sourcing Power
Purchasing lets you source your items so you can negotiate
the best deals with your suppliers. You can create requests
for quotations, record the results, and reference the
corresponding quotation when creating your purchase
order. You can also review historical purchase prices so
that you can evaluate how to purchase your items more
5-2 Oracle Purchasing User's Guide
effectively.
Supplier Defaulting
For each supplier, you can define default preferred ship-to
locations, freight terms and carriers, free-on-board
information, tax names, and payment terms to be used
when you enter purchase orders. You can always override
any default.
Supplier Purchasing Hold
You can prevent purchasing activity on specific suppliers
at any time by using the Suppliers window to provide a
reason for holding the supplier. You cannot approve any
purchase order for a supplier on hold; however, you can
receive and match against approved purchase orders or
receipts for a supplier on hold. You can release a hold at
any time.
AutoCreating RFQ and
Quotation Information
You can AutoCreate RFQs directly from requisitions. You
can also Copy quotations directly from RFQs to facilitate
recording responses from your suppliers. See: Copying
Quotations from RFQs, page 5-74. (If you receive catalog
information from your supplier electronically, that
information is sent automatically in the form of a catalog
quotation. See: Receiving Price/Sales Catalog Information
Electronically, page 5-18.)
Request for Quotation
Requirement
You can identify whether a request for quotation is
necessary for a specific item or requisition line.
Supplier Lists
Purchasing lets you create supplier lists so that you can
predefine groups of suppliers to whom you want to send
RFQs. You can establish supplier lists according to criteria
you define (item, manufacturing category, geographic
location, or other) and you can combine supplier lists to
produce many copies of your RFQ automatically.
Purchasing History
Purchasing lets you review your purchase price history
information to help you source your items better. You can
either review all historical prices for a particular item or the
last prices you paid for a specific item by quantity. You can
review the detailed information of the purchase order
corresponding to this last price.
Flexible, Custom Notes
Purchasing lets you quickly add extended Notes and
instructions to your RFQs and quotations. You can include
standard notes or create your own custom notes. You can
use as much descriptive text as you need.
Supply Base Management 5-3
Automatic Sourcing
Automatic sourcing automatically defaults sourcing
information onto the requisitions, blanket purchase orders,
or quotations you create. You can easily assign any item
with an item number to a specific blanket purchase
agreement or quotation you created. Purchasing
automatically assigns the name of the supplier for the
blanket purchase order and quotation to any requisition for
this item. (If you receive catalog information from your
supplier electronically-and you specified sourcing rules to
be sent electronically also-then the sourcing rule and
Approved Supplier List entry for this supplier is entered in
your system automatically.) See: Automatic Sourcing, page
5-24. See: Approved Supplier List, page 5-35.
RFQs and Quotations
A request for quotation (RFQ) is sent to a supplier to request pricing and other
information for an item or items. A quotation is the supplier's response to that RFQ.
Some examples of how you send an RFQ to a supplier include creating an RFQ in the
RFQs window and sending it by facsimile, making a phone call, or using Oracle
iSupplier Portal. One way a supplier can send a quotation, whether or not in response
to an RFQ, is through the Purchasing Documents Open Interface. (See: Receiving
Price/Sales Catalog Information Electronically, page 5-18.) If you don't receive
quotations electronically from your supplier, you can create the quotation manually
using the Quotations window, or copy the quotation from an RFQ. (See: Copying
Quotations from RFQs, page 5-74.)
Using Quotation Information on Your Documents
Purchasing lets you use your quotation information when you build purchase orders.
Using Quotation Information for a Purchase Order
When you create a purchase order (manually or from requisitions), you can use the
Supplier Item Catalog window to retrieve quotation information. (The Supplier Item
Catalog window can include quotations sent to you by your supplier through the
Purchasing Documents Open Interface. See: Receiving Price/Sales Catalog Information
Electronically, page 5-18.) Purchasing provides all your approved quotation shipment
information for a specific item or manufacturing category. You can copy this quotation
shipment to an existing blanket purchase agreement or standard purchase order when
you add this item or purchasing category to a purchase order line. You can sort this
quotation information according to your needs, using criteria such as price or quantity.
You can easily evaluate the source that is best for an item.
After you select the quotation shipment you want to use, Purchasing copies the item
unit price, quantity, unit of measure, supplier product number, inspection required
status, receipt required status, quotation number, quotation type, and supplier
5-4 Oracle Purchasing User's Guide
quotation number on your purchase order.
Purchasing automatically warns you when the terms and conditions of the quotation
are different from the terms and conditions of your purchase order. The original
purchase order terms and conditions remain unchanged.
Using Partial Quotation Information on a Requisition
When you enter an item or purchasing category on a requisition line, you can use the
Supplier Item Catalog window to access quotation shipment information for the item or
category. After you select the quotation shipment you want to use, Purchasing
automatically copies the item unit price, quantity, unit of measure, supplier product
number, supplier name, supplier site, and supplier contact to your requisition line.
Purchasing also copies the quotation item description on your purchase order if you
define your items to do so.
Types of Quotations and RFQs
There are three types of quotations and RFQs that come with Purchasing by default:
•
Catalog: Used for high-volume items or items for which your supplier sends you
information regularly. A Catalog quotation or RFQ also includes price breaks at
different quantity levels.
•
Standard: Used for items you'll need only once or not very often, but not necessarily
for a specific, fixed quantity, location, and date. For example, you could use a
Catalog quotation or RFQ for office supplies, but use a Standard quotation or RFQ
for a special type of pen you don't order very often. A Standard quotation or RFQ
also includes price breaks at different quantity levels.
•
Bid: Used for a specific, fixed quantity, location, and date. For example, a Bid would
be used for a large or expensive piece of equipment that you've never ordered
before, or for an item that incurs transportation or other special costs. You cannot
specify price breaks for a Bid quotation or RFQ.
For all three types, you can define effectivity dates at the header level. For Catalog and
Standard quotations, you can also specify effectivity dates for individual price breaks.
(For a Bid, you cannot specify effectivity dates at the shipment level.)
You can also define your own RFQ or quotation types using the Document Types
window. See: Defining Document Types, page 1-66.
Supplier Item Catalog
The Supplier Item Catalog provides a simple mechanism for locating items and their
source information for the purpose of creating purchase order and requisition lines. You
can open the catalog from an existing requisition or purchase order and add lines to
that document. Alternatively, you can open the catalog from the Navigator and search
for item information from there.
Supply Base Management 5-5
Overview of the Supplier Item Catalog
Search Supplier Item Catalog Window
Purchasing displays the Search Supplier Item Catalog window whether you invoke the
Supplier Item Catalog from the menu or from a requisition or purchase order.
To invoke the Supplier Item Catalog from a requisition or purchase order, select the
Catalog button when the cursor is in the Lines tabbed region.
The Supplier Item Catalog does not support Outside Processing. However, you can
open the Catalog from an outside processing line in a requisition or a purchase order to
find other items.
In the search window, lists of values show only valid values. For example, inactive
suppliers are not displayed.
The "Item description contains the words" field is used for keyword searches. If you
search for "desk executive mahogany", you get any item whose description includes all
three words. In this case you could widen the search by removing "mahogany" and/or
"desk." The words in the description do not have to occur in the order listed, so searches
on "desk executive" and "executive desk" would get the same result: all items whose
description included both of the words.
The Deliver To Organization and Location (when invoked from the menu or a
requisition) are the Ship To Organization and Location when the window is invoked
from a purchase order. Lists of values display deliver-to or ship-to values, as
appropriate. For query purposes, the deliver-to actually uses the associated ship-to
information.
Supplier Item Catalog Window
There are four tabbed regions in the upper screen of this folder window, but Function
Security can be used to determine whether a user will be able to see all of them. A
profile option (PO: Default Supplier Item Catalog Option) determines which of these
tabbed regions is the default when the catalog opens from the menu and for the first
time in a user session that the catalog opens from a requisition or purchase order. If you
close the catalog and reopen it from a purchase order or requisition during the same
session, the default source region is the last one previously open. The regions are:
Negotiated Sources
5-6 Oracle Purchasing User's Guide
Long term agreements with a supplier that
support repetitive buys: Blanket purchase
agreements, quotations, planned purchase
orders, and global agreements enabled for
your operating unit. This tabbed region is a
folder.
Prior Purchases
Actual past buys: Standard purchase orders,
scheduled releases, blanket releases. This
tabbed region is a folder.
Sourcing Rules
Sourcing rules. There are + and - iconic
buttons just below the region box. Select the +
icon or Expand Sourcing Rules on the Tools
menu to display source documents for the rule
in a folder region. Use the - icon or Collapse
Sourcing Rules on the Tools menu to collapse
the region displaying the documents. You
must be in the documents region to add to the
Order Pad or to select a price.
Requisition Templates
Requisition Templates. The PO: Legal
Requisition Type profile option governs
whether templates for supplier and internally
sourced lines are displayed. This tabbed
region is a folder.
Using the Order Pad
Open the Supplier Item Catalog window by choosing Catalog in the Requisitions
window to view and use the Order Pad. (The Order Pad is not available when you open
the Supplier Item Catalog from the Purchase Orders window.) Select a line and click the
Add button or double click to highlight the selected line in a source region and add it to
the Order Pad. Validation takes place at this point, and if there is a problem, Purchasing
displays a message window with an explanation. Depending on the problem, you may
or may not be permitted to add the line. Also, if Disposition messages are enabled for
the Purchasing Inventory organization, they are displayed as lines and added to the
Order Pad.
When you add to the Order Pad, you must specify the following information. Defaults
for this information are defined in the Order Pad Options window.
•
Deliver-To organization (if you opened the catalog from the menu or a requisition)
•
Ship-To organization (if you opened the catalog from a purchase order)
•
Deliver-To location (if you opened the catalog from the menu or a requisition)
•
Ship-To location (if you opened the catalog from a purchase order)
•
Destination Type (Expense or Inventory)
•
Subinventory (if the Destination Type is Inventory)
Supply Base Management 5-7
•
Need-By date (if the item is planned in the destination organization)
•
Quantity. The quantity must be greater than zero. It defaults to 1 or the quantity on
the requisition/purchase order line if a quantity was specified and if the first record
was added to the Order Pad.
•
Amount. For services line type you can specify an amount.
If you are adding to the Order Pad from Negotiated Sources or Sourcing Rules and
enter a quantity less than an existing price break quantity, Purchasing opens a
Decision window and asks whether you want to increase the order quantity to
reduce the unit price.
Use the Remove button or Clear Record to remove selected lines from the Order Pad.
When you remove a line from the Order Pad, Purchasing returns it to the source region
and highlights the line. To support returning a line to its source tabbed region,
Purchasing does not permit Clear Record in the source tabbed regions or Clear Block in
the Order Pad.
Order Pad Options
You enter Order Pad defaults and options in the Order Pad Options window. Navigate
to the Order Pad Options window by opening the Supplier Item Catalog from a
requisition and choosing the Options button while you are on the Order Pad. (Note: The
Order Pad is not available when you open the Supplier Item Catalog from the Purchase
Orders window.) The Order Pad Options window includes the Copy Option tabbed
region, where you can specify the Supplier, Supplier Site, Supplier Contact, FOB,
Carrier, Payment Terms, and Freight Terms to be copied to the purchase order header.
Order Pad Total
For each line on the Order Pad, Purchasing displays the extended price in that line's
currency. To see the total Order Pad amount in your functional currency, open the
Order Pad Total window by selecting the Order Total button.
Select Price Only Option
As a mutually exclusive alternative to the Order Pad, there is a Select Price Only check
box at the top right of the screen when you have opened the Supplier Item Catalog from
a requisition or a purchase order. If the requisition or purchase order line is saved,
when you open the Catalog, you must use Select Price Only. This check box can be
enabled only if nothing has been added to the Order Pad. If this check box is selected,
the Add, Order Total, and Options buttons are disabled and the Select button is
enabled. You can then select prices for inclusion on a requisition or purchase order.
Related Topics
Profile Options in Purchasing, page C-1
5-8 Oracle Purchasing User's Guide
Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide
Finding Supplier Items, page 5-9
Using the Supplier Item Catalog tabbed regions, page 5-13
Entering Order Pad Options (from Requisitions), page 5-16
Finding Supplier Items
Use the Search Supplier Item Catalog window to enter search criteria for supplier items.
Depending on the function security assigned to your responsibility, you have varying
levels of access to information. A responsibility defines an application user's current
privileges while working with Oracle Applications. See: Function Security for
Purchasing, page D-1.
If you enter an item with Purchasing Enabled = 'N' and with Internal Orders Enabled =
'Y', the item is valid for an internal order, but you cannot search for this item in the
Supplier Item Catalog. If you want to be able to search the Supplier Item Catalog, the
item must have Purchasing Enabled = 'Y'.
To enter search criteria:
1. Navigate to the Search Supplier Item Catalog window by selecting Suppler Item
Catalog from the menu. Also, the Search Supplier Item Catalog window is
displayed when you select the Catalog button in the Requisitions and Purchase
Orders windows.
Supply Base Management 5-9
Enter optional search criteria as described in the following steps:
2.
Select the Operating Unit for this search.
3.
Enter the Commodity. This is used to locate matching stored categories on
Purchasing document lines.
4.
Enter the Requisition Template. This is enabled only if the window is accessed from
the menu or from the Requisitions window.
5.
Enter the Category Set. This is used to find predefined items associated with a
specific category set. If you access this window from the Requisitions or Purchase
Orders windows, the default is the Purchasing category set. If you enter a category
set, you can also further restrict the search by entering a Category.
6.
Enter the Item number. If you access this window from the Requisitions or
Purchase Orders window, the default is the item on the originating document line.
If you enter an item, you can also further restrict the search by entering an item
Revision number.
7.
Enter the item Description. If you access this window from the Requisitions or
Purchase Orders window, the default is the description on the originating
document line.
8.
If Oracle Services Procurement is implemented, enter the Job to search for fixed
5-10 Oracle Purchasing User's Guide
price services. You can only enter these line types on purchase orders.
9.
Enter key words separated by spaces in the Item description contains the words:
field to find item descriptions containing all the specified words. The search is not
case sensitive, nor does it consider the sequence of the words.
10. Enter the Supplier. If you access this window from the Requisitions or Purchase
Orders window, the default is the supplier on the originating document line. If you
enter a supplier, you can enter a supplier Site.
11. Enter the Supplier Item number. If you access this window from the Requisitions or
Purchase Orders window, the default is the supplier item number on the
originating document line.
12. Select Approved Suppliers Only to get only records where the supplier and the item
exist in a current sourcing rule and Approved Supplier List entry.
13. Enter the Due Date to get documents that are current as of this date or future
effective. If you access this window from the Requisitions or Purchase Orders
window, the default is the due date on the originating document line.
14. Enter the Line Type. If you access this window from the Requisitions or Purchase
Orders window, the default is the line type on the originating document line.
15. Enter the UOM. If you access this window from the Requisitions or Purchase
Orders window, the default is the UOM on the originating document line.
Important: Since catalog quotations in the Negotiated Sources and
Sourcing Rules tabbed regions can have different units of measure
on the line and the price break, Purchasing performs the following
test on the UOM you enter in this field:
If a UOM exists on the shipment, Purchasing returns rows where
this matches the search value. If no UOM exists on the shipment,
Purchasing returns rows where the line UOM matches the search
value. We do this because if you add to the Order Pad from a row
with a different UOM on the price break, this is the UOM we copy
to the Order Pad.
16. Enter the Ship-to Organization. If you access this window from the menu or the
Requisitions window, the field title is Deliver-To Organization. If you access this
window from the Purchase Orders window, the field title is Ship-To Organization.
The defaults are from the originating document line, deliver-to from the requisition
and ship-to from the purchase order.
17. Select External Locations to limit your results to external (customer) locations. With
Supply Base Management 5-11
this checkbox unchecked, the results of the find include only internal ship-to
locations.
18. Enter the Location. If you access this window from the menu or the Requisitions
window, the field title is Deliver-To Location. If you access this window from the
Purchase Orders window, the field title is Ship-To Location. The query is based on
the ship-to location associated with the deliver-to location. The defaults are from
the originating document line, deliver-to location from the requisition and ship-to
location from the purchase order.
19. Enter the Currency. If you access this window from the Purchase Orders window,
the default is the currency from the purchase order line.
To clear existing search criteria:
•
Select the Clear button to clear any existing search criteria.
To initiate the search:
•
Select the Find button to initiate the search and open the Supplier Item Catalog
window.
To close the Search Supplier Item Catalog window:
•
Select the Close Catalog button to close the Search Supplier Item Catalog window.
This button is available only when you have accessed this window from the
Requisitions or Purchase Orders windows; when you close the catalog window,
you return to your originating document window.
Note: You must select either Find or Close Catalog before you can
return to the originating document. While the Search Supplier Item
Catalog window is open, you cannot:
•
Exit to the menu
•
Navigate to the originating document
•
Save your work
Related Topics
Overview of the Supplier Item Catalog, page 5-5
Defining Categories, Oracle Inventory User's Guide
Defining Category Sets, Oracle Inventory User's Guide
Defining Items, Oracle Inventory User's Guide
Suppliers, Oracle iSupplier Portal Implementation Guide.
Using the Calendar to Enter Dates, Oracle Applications User's Guide
5-12 Oracle Purchasing User's Guide
Defining Line Types, page 1-61
Defining Units of Measure, Oracle Inventory User's Guide
Representing Organizations, Oracle HRMS Enterprise and Workforce Management Guide.
Site Locations, Oracle HRMS Enterprise and Workforce Management Guide
Defining Currencies, Oracle General Ledger User's Guide
Using the Supplier Item Catalog Tabbed Regions
Use the Supplier Item Catalog window to:
•
Review results of your search in the tabbed regions of the Search Supplier Item
Catalog window.
•
Select prices from the tabbed regions for placement onto requisition and purchase
order lines.
•
Place source lines from the tabbed regions onto the Order Pad, where you can
modify them before placing them onto requisition and purchase order lines or onto
new requisitions.
The Supplier Item Catalog window has four tabbed regions (Negotiated Sources, Prior
Purchases, Sourcing Rules, and Requisition Templates), but Function Security controls
which are present. A profile option (PO: Default Supplier Item Catalog Option)
determines which of these tabbed regions is the default, but this applies only to regions
permitted by Function Security.
Supply Base Management 5-13
The query based on your search criteria is executed in the currently displayed
alternative results region in the Supplier Item Catalog window. As you change tabbed
regions, a query is executed in each tabbed region using the original search criteria.
Search criteria are considered only in tabbed regions in which they are relevant.
For example, if your original search criteria consisted of a requisition template and a
key word, the query in the Negotiated Sources tabbed region would ignore the
requisition template.
To review the tabbed regions:
•
Navigate to the Supplier Item Catalog window by selecting the Find button in the
Search Suppler Item Catalog window. You can also navigate to the Search Supplier
Item Catalog window by selecting the Catalog button in the Requisitions and
Purchase Orders windows.
The Negotiated Sources tabbed region is a folder. As installed, it displays the
Supplier, Item, Commodity, item Description, Supplier Item number, Line UOM,
Line Price, Break Quantity, and Break Price.
The Prior Purchases tabbed region is a folder. As installed, it displays the Order
Date, Supplier, Item number, Commodity, item Description, UOM, Price, Supplier
Item number, Quantity, and Negotiated flag.
The Sourcing Rules tabbed region displays the Item number, Rank, Supplier, Rule
number, and the rule Effective date range. You can expand and collapse sourcing
rule lines either by selecting the + and - icons or from options on the Tools menu.
When you expand a sourcing rule line, Purchasing opens a folder window that, as
installed, displays the Rank, Commodity, Supplier Item, Line UOM, Line Price,
5-14 Oracle Purchasing User's Guide
Break Quantity, and Break Price for documents referencing the rule.
The Requisition Templates tabbed region is a folder. As installed, it displays the
Supplier, Item number, Commodity, UOM, Price, Source Type, Supplier Item
number, Template name, Template Description, and Buyer.
To select prices from the tabbed regions:
1.
Select the Select Price Only check box, if you opened the Supplier Item Catalog from
a requisition (the target document.). If you opened the Supplier Item Catalog from a
purchase order, the Select Price Only check box is already selected, and you cannot
deselect it. You cannot use the Order Pad if you have checked Select Price Only.
You cannot use the Order Pad if you opened it from a Purchase Order window.
2.
Move the cursor to the desired line in one of the tabbed regions.
3.
Select the Select button to copy the price of the current line to your target document.
To use the Order Pad:
1.
Open the Supplier Item Catalog by choosing the Catalog button on a requisition or
purchase order. You can access the Order Pad only when you open the Supplier
Item Catalog from a requisition or purchase order.
2.
Choose the Add button to place the current line in the open tabbed region onto the
Order Pad. The cursor moves to the Order Pad, where you can select the Remove
button to return the current line to its original tabbed region.
3.
You can enter or edit the following fields for an Order Pad line: Quantity, Price,
Need-By date, Organization, Location, Destination Type, and Subinventory.
4.
Choose the Select button to add the order pad lines to the requisition or purchase
order from which you accessed the catalog. This also closes the Supplier Item
Catalog window.
To create a new requisition from the Catalog:
1.
Open the Supplier Item Catalog from the menu.
2.
Add lines to the Order Pad.
3.
Select the Requisition button.
To enter order pad options and defaults:
•
Select the Options button to open the Order Pad Options window. See: Entering
Order Pad Options (from Requisitions), page 5-16.
To view the current order pad total:
•
Select the Order Total button to open the Order Pad Total window. This window
displays the Functional Currency and the current total amount on the order pad.
Supply Base Management 5-15
To close the Supplier Item Catalog window:
•
Select the Close Catalog button to close the Supplier Item Catalog windows. This
button is available only when you have accessed this window from the Requisitions
or Purchase Orders windows; when you close the Search Supplier Item Catalog and
the Supplier Item Catalog windows, you return to your originating document
window.
Note: You must either Select information to copy back or Close
Catalog before you can return to the originating document. While
the Supplier Item Catalog window is open, you cannot:
•
Exit to the menu
•
Navigate to the originating document
•
Clear the window
•
Save your work
Related Topics
Overview of the Supplier Item Catalog, page 5-5
Using the Search Supplier Item Catalog Window, page 5-9
Entering Requisition Lines, page 3-50
Site Locations, Oracle HRMS Enterprise and Workforce Management Guide
Representing Organizations, Oracle HRMS Enterprise and Workforce Management Guide
Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide
Entering Order Pad Options (from Requisitions)
Use the Order Pad Options window to enter order pad defaults and options. You access
this version of the window when you have opened the Supplier Item Catalog from a
requisition.
To enter order pad defaults and options:
1. Navigate to the Order Pad Options window by selecting the Options button in the
Supplier Item Catalog window.
5-16 Oracle Purchasing User's Guide
2.
Select the default option:
Default From Previous Line - Defaults for Order Pad lines are from the previous line
on the Order Pad. (The first line on the Order Pad uses defaults from this window.)
Default From Options - Defaults for Order Pad records come from this window.
3.
Enter the default Need-By date.
4.
Enter the default Destination Type: Expense or Inventory.
5.
Enter the default Organization.
6.
Enter the default Location.
7.
Enter the default Requestor.
8.
For the Destination Type of Inventory, enter the default Subinventory.
Supply Base Management 5-17
9.
Enter the default Expense Charge Account.
To apply the defaults:
•
Select the OK button to apply the defaults and return to the Supplier Item Catalog
window.
Related Topics
Overview of the Supplier Item Catalog, page 5-5
Site Locations, Oracle HRMS Enterprise and Workforce Management Guide
Representing Organizations, Oracle HRMS Enterprise and Workforce Management Guide
Representing Organizations,
Receiving Price/Sales Catalog Information Electronically
Your supplier can send you the latest price/sales catalog information and responses to
requests for quotation through the Purchasing Documents Open Interface. The
Purchasing Documents Open Interface processes catalog data in the Oracle
Applications interface tables to ensure that it is valid before importing it into
Purchasing. One way to import catalog data into the Purchasing Documents Open
Interface, and finally into Purchasing, is through Electronic Data Interchange (EDI). EDI
programs import the catalog information into Purchasing directly as blanket purchase
agreement lines or catalog quotations, whichever you choose. You can also choose to
have the programs automatically populate the item master and/or apply sourcing rules
to the imported item information. If you import price/sales catalog information as
blanket purchase agreement lines, you can also specify release generation methods. You
can import new documents, replace existing documents entirely, or update existing
documents.
The catalog information is sent by the supplier in the form of a "flat file." Your supplier
can send you flat files with any of three kinds of action codes: Original, Replace, or
Update. An Original file is one in which all the catalog information is new to your
system. A Replace file replaces already-created blanket purchase agreement lines or
catalog quotations with new documents containing new price/sales catalog information.
(The Purchasing Documents Open Interface program replaces the old documents by
invalidating their effectivity dates; then it creates new documents with the new
price/sales catalog information and the old effectivity dates.) An Update file updates
existing blanket purchase agreement and catalog quotation lines without replacing the
documents entirely. It updates the unit Price, item Description, unit of measure (UOM),
Price Breaks, Expiration Date, and the supplier URL descriptive flexfield if you use one.
Note: An Update submission does not update the UOM on an
agreement line for which an open release exists. Instead, it uses the
Expiration Date field to expire the line on the agreement, and creates a
5-18 Oracle Purchasing User's Guide
new line with the updated UOM, which will be used on future releases.
The Purchasing Documents Open Interface also imports price breaks. In an updated
price/sales catalog, if the supplier updates an item's price, the Purchasing Documents
Open Interface deletes the item's price breaks since they are no longer current with the
new price. If the supplier sends new price breaks for an existing line, the current price
breaks are deleted and the new price breaks sent by the supplier are created.
The Purchasing Documents Open Interface supports the Oracle e-Commerce Gateway
transmissions of the price/sales catalogs (ANSI X12 832 or EDIFACT PRICAT) and
responses to RFQs (ANSI X12 843 or EDIFACT QUOTES).
For e-Commerce Gateway to distinguish between Original, Replace, and Update action
codes, you need to set up code-conversion categories and values in e-Commerce
Gateway. See: Defining Code Conversion Categories, Oracle e-Commerce Gateway User's
Guide. See: Defining Code Conversion Values, Oracle e-Commerce Gateway User's Guide.
Other setup includes making sure that default category sets are set up appropriately for
both Purchasing and Inventory, setting Purchasing profile options, and allowing
updating of the item master if you want to update the item description in the item
master as well as on the blanket purchase agreement or quotation. For complete
instructions on setup requirements, see the Oracle Manufacturing, Distribution, Sales and
Service Open Interfaces Manual.
You can also import standard purchase orders through the Purchasing Documents
Open Interface, using your own import program. You cannot update or replace existing
standard purchase orders through the Purchasing Documents Open Interface. You must
use the Change Order API.
How Sourcing Works
When you import blanket purchase agreements and catalog quotations into Purchasing,
you have the option of choosing Yes or No in the Create Sourcing Rules field in the
Parameters window to enable Purchasing to create sourcing rules out of the supplier,
item, and document information that the supplier sends.
Original and Replacement Price/Sales Catalogs
If you choose Yes to create sourcing rules in an original or replacement price/sales
catalog, Purchasing checks if a sourcing rule is assigned to the item at the item level and
does the following:
•
If no sourcing rules exist for the item, Purchasing generates a sourcing rule
automatically, allocating 100 percent to the supplier importing the information.
•
If a sourcing rule exists for the item, Purchasing compares the effectivity dates of
the incoming document with those of the existing sourcing rule for the item. To
ensure that only one sourcing rule is used for the item, Purchasing does the
following:
Supply Base Management 5-19
•
•
If the effectivity dates of the incoming document are the same as the existing
sourcing rule's effectivity dates, Purchasing checks to see if the supplier is in the
sourcing rule. If not, Purchasing adds the supplier to the existing sourcing rule
with an allocation of 0 percent. Later, you can query the sourcing rule and
define your own percentage splits between suppliers.
•
If the effectivity dates of the incoming document are different than the existing
sourcing rule's effectivity dates, but are within or overlap the existing effectivity
dates, then a new sourcing rule is not created, so as not to conflict with the
existing sourcing rule.
•
If the effectivity dates of the incoming document do not overlap the existing
sourcing rule's effectivity dates, Purchasing updates the item's sourcing rule
with the new effectivity dates, adding the supplier at an allocation of 100
percent.
Purchasing checks for an Approved Supplier List entry for the item and
supplier/site combination. If an entry exists, Purchasing adds the document to the
entry. If an entry does not exist, Purchasing creates a new entry with the new source
document.
Updated Price/Sales Catalogs
If you choose Yes to create sourcing rules in an Update submission, new sourcing
information is created (as described above) only if the Update submission results in a
new line being created.
Related Topics
Running the EDI Price/Sales Catalog Inbound Program, Oracle e-Commerce Gateway
User's Guide
Running the EDI Response to Request for Quotation Inbound Program, Oracle
e-Commerce Gateway User's Guide
Import Price Catalogs, page 12-8
Oracle Manufacturing, Distribution, Sales and Service Open Interfaces Manual
Setting a Price Tolerance in a Price/Sales Catalog Update
You can set a price update tolerance that specifies the maximum percentage increase
allowed to an item's price when your supplier sends updated price/sales catalog
information through the Purchasing Documents Open Interface. This price update
tolerance affects only blanket purchase agreements and catalog quotations imported
through the Purchasing Documents Open Interface. If the tolerance is exceeded, you
receive a notification for each affected document and can accept or reject the price
increase through the Exceeded Price Tolerances window. You can also access this
5-20 Oracle Purchasing User's Guide
window through the notification.
Purchasing performs the price update tolerance check against the price on the current
revision of the document. The price tolerance check is performed only on updated
blanket purchase agreements and catalog quotations and only on line price increases
(not price breaks).
To set the price tolerance:
•
Define a price update tolerance at any of the following levels; Purchasing uses the
first tolerance it finds, in this order: on the agreement in the Terms and Conditions
window, at the item-supplier level in the Supplier-Item Attributes window, at the
commodity-supplier level in the Supplier-Item Attributes window, and at the
system level in the PO: Price Tolerance (%) for Catalog Updates profile option.
Example
If you set the Price Update Tolerance to 20 at the item-supplier level in the
Supplier-Item Attributes window (and you haven't set the price tolerance on the
agreement), a price increase of more than 20 percent for that item and supplier will send
the buyer a notification. If you set the Price Update Tolerance to 20 on the agreement, a
price increase of more than 20 percent on that document will issue a notification.
A price tolerance of 0 means you are alerted of every price increase. No tolerance means
that you are not alerted of any price increase.
Related Topics
Receiving Price/Sales Catalog Information Electronically, page 5-18
Monitoring Price Increases in a Price/Sales Catalog Update, page 5-21
Monitoring Price Increases in a Price/Sales Catalog Update
Use the Exceeded Price Tolerances window to accept or reject price increases to blanket
purchase agreements and catalog quotations sent by your supplier through the
Purchasing Documents Open Interface.
This window displays price increases only to blanket purchase agreements and catalog
quotations received through the Purchasing Documents Open Interface and only if you
define a Price Update Tolerance at one of four levels. See: Setting a Price Tolerance in a
Price/Sales Catalog Update, page 5-20.
Purchasing performs the price update tolerance check against the price on the current
revision of the document. The price tolerance check is performed only on updated
blanket purchase agreements and catalog quotations and only on line price increases
(not price breaks).
To accept or reject price increases:
1.
Navigate to the Exceeded Price Tolerances window.
This window is available in the Purchasing menu. You can also navigate to this
Supply Base Management 5-21
window from the notification. The price increase notification is titled Price tolerance
exceeded during BLANKET update or Price tolerance exceeded during QUOTATION
update. Select the notification, and then choose the document icon to open the
Exceeded Price Tolerances window.
You receive a notification for each affected document.
The updated document's header information is displayed at the top of the Exceeded
Price Tolerances window. Its lines whose price updates exceeded the price tolerance
are displayed below. You cannot change the price here, but simply accept or reject
it.
Document Status: Approval Status of Approved or Incomplete entered in the
Parameters window when importing the price/sales catalog, for your reference. You
cannot change this field.
Rev - Item revision number.
Current Price: The current price of the item in Purchasing, on the blanket purchase
agreement or quotation.
New Price: The updated price in the price/sales catalog submission. This price has
exceeded your price tolerance.
Increase (%): Percentage by which the price of the item was exceeded over the price
on the current blanket purchase agreement or quotation in Purchasing.
Tolerance (%): The price tolerance that is set in Purchasing for this item.
Price Increase: The difference between the current price on the blanket purchase
5-22 Oracle Purchasing User's Guide
agreement or quotation in Purchasing and the updated price in the price/sales
catalog submission.
2.
Choose Price Breaks to view price break changes, if any.
The Price Breaks window is a view-only window.
3.
In the Action column of the Exceeded Price Tolerances window, choose Accept or
Reject to accept or reject each price update. Or choose Accept All or Reject All to
accept or reject all price updates.
Accept: The price update to the document line is accepted.
Reject: The price is not updated on the document. Any other changes to the line-to
the item Description, UOM, Expiration Date, or URL descriptive flexfield-have
already been made. Only the price update is not made. If you've customized the
price/sales catalog workflow, you can enable the Reject action to send the supplier a
notification that the price update for this item has been rejected. See: Price/Sales
Catalog Notification Workflow, page E-206.
Note: The revision of the document is not updated until you accept
all line updates (if the profile option PO: Archive Catalog on Approval
is set to Yes).
Important: Depending on how the function security is set for your
user responsibility, you may not have access to the Action field.
(With function security, a system administrator can limit people's
access to this function to view-only.)
Related Topics
Receiving Price/Sales Catalog Information Electronically, page 5-18
Supply Base Management 5-23
Overview of Automatic Sourcing
Purchasing lets you automatically source online requisitions with purchase agreements
or quotations you create. You can easily assign any item with an item number to a
specific purchase agreement or quotation. Purchasing automatically assigns the name of
the supplier for the purchase agreement and quotation to any requisition for this item.
To achieve automatic sourcing, use the Sourcing Rule and Sourcing Rule/Bill of
Distribution Assignments windows to create sourcing rules. Optionally use the
Approved Supplier List and Supplier-Item Attributes windows to specify source
document information for a particular item, supplier, and site.
Defaulting Sourcing Information
For requisitions, if you define a purchase agreement or quotation as the source
document for your item, and define and assign sourcing rules, Purchasing provides the
following sourcing information for your requisition line: Buyer, Supplier, Site, Contact,
Phone, Supplier Item Number, Document Type (Blanket, Contract, or Quotation)
Source Document, Source Line Number, Rate Date, Rate Type, Rate, and RFQ Required
(Yes or No). Oracle Purchasing also defaults the price depending on your pricing
configuration. You can later review the sourcing information in the AutoCreate
Documents window before placing the requisition line onto a purchase order.
Sourcing information defaults on a requisition from existing documents in the following
order of precedence:
•
Local blanket purchase agreement
•
Global blanket purchase agreement
•
Local contract purchase agreement
•
Global contract purchase agreement
•
Quotation
For standard purchase orders, if you define a global agreement or quotation as the
source document for the item, and define and assign sourcing rules, Oracle Purchasing
provides sourcing information for the purchase order line. Examples of sourcing
information are: Contract, Document Type, document Number and Line, and Supplier
Quotation number. Oracle Purchasing also defaults the price from the source document.
Sourcing information defaults on a purchase order from existing documents in the
following order of precedence:
•
Local blanket purchase agreement
•
Global blanket purchase agreement
5-24 Oracle Purchasing User's Guide
•
Quotation
A requisition with a quotation, contract purchase agreement, or global agreement as a
source document becomes a standard purchase order. A requisition with a blanket
purchase agreement as a source document becomes a release.
Purchasing defaults sourcing information from the purchase agreement or quotation
except under the following conditions:
•
The document is not approved.
•
The purchase agreement is frozen or cancelled, or the blanket purchase agreement
line is cancelled.
•
The document is not active.
•
You have copied sourcing information back to the requisition from the Supplier
Item Catalog.
Sourcing by Item or Item Category
In the Approved Supplier List and Sourcing Rule windows, you source at an item or
commodity level. That is, you provide sourcing information for a particular item at the
item level, or for a category of items at the commodity level.
For inventory items, if no sourcing rule is provided at the item level in the Sourcing
Rule/Bill of Distribution Assignments window, Purchasing automatically defaults the
supplier or supplier site from the category-level sourcing rule if there is one.
The same is true of supplier statuses. If you debar a supplier for a specific commodity
(category) in an Approved Supplier List entry, the supplier is prevented from supplying
all items within that commodity. (Note: If you approve a supplier for a commodity, the
item-specific status for the supplier still takes precedence.)
Sourcing Globally or Locally
In the Approved Supplier List and Sourcing Rule windows, you also choose whether to
exercise the sourcing information at a global or local level. A sourcing rule assigned at
the global level in the Sourcing Rule / Bill of Distribution Assignments window is valid
for all operating units. A global ASL entry in the Approved Supplier List window is
valid for all inventory organizations in an operating unit. A local sourcing rule or ASL
entry is valid only for the organization that you were in or that you chose when creating
the sourcing rule or ASL entry.
Local entries take precedence over global ones. For example, if you have a global
sourcing rule that says to use Supplier A for an item for all organizations in your
company, and a local sourcing rule for the same item that says to use the local Supplier
Z only for your organization, Purchasing defaults Supplier Z on requisitions or
purchase orders created in your organization. Local entries are the default in the
Supply Base Management 5-25
Approved Supplier List window.
Defining Allocation Percentages
When creating sourcing rules in the Sourcing Rule window, you must define allocation
percentages. Master Scheduling/MRP uses these allocation percentages when creating
planned orders, which Purchasing imports as requisitions through Requisition Import.
In a group of requisitions imported from Master Scheduling/MRP, the requisitions show
the percentage allocation you define. In other words, at the end of a planning period, a
group of orders to those suppliers approximately equals the percentage split you
defined. However, when you create an individual requisition in Purchasing, Purchasing
sources to the supplier with the highest allocated percentage. The Approved Supplier
List (ASL) entry for that supplier is then referenced in order to pick up source
document information (from a purchase agreement or quotation), if source documents
exist. If a percentage allocation is the same for some suppliers, and you have ranked the
suppliers in the Sourcing Rule window, Purchasing sources to the one with the highest
rank.
Specifying Planning Constraints
The Supplier-Item Attributes window lets you optionally specify the capacity of
individual supplier sites to supply specific items. Supply Chain Planning allocates
planned orders taking these capacity constraints into account. For example, you define
and assign a sourcing rule that says an item can come from either of two suppliers this
year. In the sourcing rule, you also rank the suppliers so that Planning prefers Supplier
1 over Supplier 2. However, if the capacity of Supplier 1 in the Planning Constraints
tabbed region of the Supplier-Item Attributes window includes a four-day lead time,
but there is a need-by date of one day, Supply Chain Planning automatically defaults
Supplier 2 onto planned orders if Supplier 2 has a lead time of less than one day. (If no
suppliers can meet your demand, Supply Chain Planning uses the top-ranked supplier.)
In addition to lead time, you can define receiving schedules, minimum order quantities
and fixed lot multiples, capacity per day, and tolerance fences. See: Defining the
Supplier/Item Attributes, page 5-43.
These planning constraints apply to planned orders only.
Automatic Sourcing with Center-Led Procurement
Centralized procurement enables you to extend automatic sourcing to global
agreements negotiated by other business units. Automatic sourcing setup is the same
but sourcing will be extended to look at global agreements matching the supplier and
supplier site in other business units (operating units). This extended automatic sourcing
will always evaluate purchase agreements in your operating unit first, then global
agreements, and finally quotations.
5-26 Oracle Purchasing User's Guide
Automatic Sourcing with Oracle Services Procurement
Oracle Services Procurement extends automatic sourcing by always attempting to find a
source document with a matching commodity and job title. This is done regardless of
the setting of the PO: Automatic Document Sourcing profile or commodity entries in
the Approved Supplier List.
Setting Up Automatic Sourcing
Use the Sourcing Rules windows to default a supplier and optionally a supplier site on
your requisition or purchase order line. Use the Approved Supplier List or the PO:
Automatic Document Sourcing profile if you also want to default source document
information from a purchase agreement or quotation on your requisition or purchase
order line for an item-supplier combination.
By defining and assigning sourcing rules, Purchasing actively defaults the appropriate
supplier onto your document as soon as you enter an item or commodity.
To default the supplier, site, and source document information:
1.
Set the profile option PO: Automatic Document Sourcing.
Setting this profile option to Yes means that Purchasing automatically searches for
the most current purchase agreement or quotation for an item-supplier
combination, and defaults the information from this document onto a newly created
document line. This method is useful if you do not want to maintain the most
current source documents in the Approved Supplier List, particularly if you receive
these documents regularly from your suppliers through the Purchasing Documents
Open Interface. If you set this profile option to Yes, you do not have to specify
source documents in the Approved Supplier List.
Note that if an item on a requisition is associated with both a purchase agreement, a
global agreement, and a quotation, Purchasing uses the purchase agreement, then
the global agreement, and then the quotation even if the global agreement or
quotation were created more recently.
Setting this profile option to No means that Purchasing defaults sourcing
information onto a newly created requisition or purchase order line only from those
documents you have specified in the Approved Supplier List. This method is useful
if you prefer to maintain and update the Approved Supplier List with documents
that you choose.
Note: If Oracle Services Procurement is implemented, for services
lines the automatic sourcing logic always acts as though this profile
is set to Yes. No automatic sourcing is performed for fixed price
services.
2.
If you set the profile option in the previous step to No, create a source document (a
Supply Base Management 5-27
purchase agreement or quotation) and then tie the document to an Approved
Supplier List entry.
See: Defining the Supplier and Commodity/Item Combination, page 5-40. Then see:
Defining the Supplier/Item Attributes, page 5-43.
If you set the profile option in the previous step to Yes, you do not have to perform
this step, although you can if you want to. Purchasing still uses the source
documents in the Approved Supplier List if they are the most current, and uses
documents outside the Approved Supplier List if they are not.
Note: When Use Approved Supplier is checked for an item in the
Master Items window, you cannot approve the source document
until the supplier is in the Approved Supplier List. Therefore, if
Use Approved Supplier is checked for an item, create the
Approved Supplier List entry and source document in the
following order:
3.
•
Create an Approved Supplier List entry (this is the approved
supplier you are enforcing for the item).
•
Create and save a source document.
•
If the PO: Automatic Document Sourcing profile is No, return
to the Approved Supplier List window and tie the source
document to the supplier.
Define and assign sourcing rules as described in To default just the supplier and
the supplier site below.
To default just the supplier and the supplier site:
1.
2.
Make sure you have satisfied the prerequisites for defining and assigning sourcing
rules:
•
Define items. See: Defining Items, Oracle Inventory User's Guide.
•
Create suppliers and supplier sites in the Suppliers window. See: Suppliers,
Oracle iSupplier Portal Implementation Guide.
•
Set the profile options MRP: Sourcing Rule Category Set and MRP: Default
Sourcing Assignment Set. See: Purchasing Profile Options, page C-1.
Use the Sourcing Rule window to define sourcing rules. See: Defining Sourcing
Rules, Oracle Master Scheduling/MRP and Supply Chain Planning User's Guide.
Note: Some of the fields in the Sourcing Rule window may already
5-28 Oracle Purchasing User's Guide
be completed for you if your supplier sends you catalog
information electronically. See: Receiving Price/Sales Catalog
Information Electronically, page 5-18.
3.
Use the Sourcing Rule/Bill of Distribution Assignments window to assign your
sourcing rules to particular items or organizations. See: Assigning Sourcing Rules
and Bills of Distribution, Oracle Master Scheduling/MRP and Supply Chain Planning
User's Guide.
Important: When you enter an Assignment Set name in the
Sourcing Rule/Bill of Distribution Assignments window, note that
Purchasing can use only one assignment set-the one that is
specified in the profile option MRP: Default Sourcing Assignment Set.
(Note that the User level for the profile option takes precedence.)
Although creating and assigning a sourcing rule in the Sourcing Rule windows is
all you need to do to default a supplier and supplier site onto your documents, you
can still also create approved suppliers in the Approved Supplier List window. For
example, if you checked Use Approved Supplier in the Master Items window when
defining an item, you must define the supplier in the Approved Supplier List
window.
If you want to verify the sourcing rule, create a requisition for the item to verify that
the Supplier and Site default. If the sourcing rule is local, make sure the
Organization field on the requisition is the organization in which the sourcing rule
was created.
Troubleshooting
If you encounter any problems with automatic sourcing after you set it up, the
following solutions may help.
Purchasing is not using the sourcing rules defined in the Sourcing Rule/Bill of Distribution window
Make sure that you have done both of the following:
•
Assigned the sourcing rules to an assignment set in the Sourcing Rule/Bill of
Distribution Assignments window.
•
Made sure that the Assignment Set name in this window matches the assignment
set name in the profile option MRP: Default Sourcing Assignment Set.
Purchasing can use only one assignment set at a time, so if Purchasing is not using
your sourcing rules, they may belong to another assignment set. For the MRP:
Default Sourcing Assignment Set profile option, choose the assignment set name to
which your sourcing rules are assigned in the Sourcing Rule/Bill of Distribution
Supply Base Management 5-29
Assignments window.
Also make sure that the profile option MRP: Default Sourcing Assignment Set isn't also
set at the User level. The User value for profile options takes precedence over System
Administrator level values. If you believe that Purchasing is not using the correct
Assignment Set, check if the profile option is also set at the User level.
Source document information is not defaulting onto my requisition or purchase order
Assuming you have defined and assigned sourcing rules, the problem could be one of
the following:
•
Make sure you have followed the instructions in the following two sections:
Defining the Supplier and Commodity/Item Combination, page 5-40 and Defining
the Supplier/Item Attributes, page 5-43. Make sure that, for the item, the supplier
and site in the Approved Supplier List matches the supplier and site in the sourcing
rule.
•
The Approved Supplier List entry may be local. In the Approved Supplier List
window, choose the Record Details tabbed region and note the Global field. If the
Global field is set to No, then the sourcing information specified for the item is used
only locally, by your organization or the organization that originally created the
Approved Supplier List entry, and other organizations will not receive the source
document information. Likewise, if there are two Approved Supplier List entries for
an item, and one is local and the other is global, the local entry takes precedence for
your organization.
•
Sometimes you may see just one, Global entry in the Approved Supplier List
window, but local versions of that entry are visible only in the Supplier-Item
Attributes window. Recall that a local entry takes precedence over a global one and
is used only by the organization in which it was created. In the Approved Supplier
List window, choose the Attributes button. If local entries exist, the Create Local
button will be dimmed.
Related Topics
Setting Up and Implementing Sourcing Strategies, Oracle Master Scheduling/MRP and
Supply Chain Planning User's Guide
Sourcing Rules and Bills of Distribution, Oracle Master Scheduling/MRP and Supply Chain
Planning User's Guide
Overview of Automatic Sourcing, page 5-24
Defining Sourcing Rules
You can define sourcing rules that specify how to replenish items in an organization,
such as purchased items in plants. Sourcing rules can also specify how to replenish all
organizations, as when the entire enterprise gets a subassembly from a particular
5-30 Oracle Purchasing User's Guide
organization.
If there is a conflict between a sourcing rule and a bill of distribution, the sourcing rule
takes precedence. For instance, if you assign a bill of distribution to AUS that tells it to
source a part from NYC, AUS can still define a sourcing rule to source the part from
SAC. In this case, the local sourcing rule overrides the bill of distribution.
To define a sourcing rule:
1.
Navigate to the Sourcing Rule window.
2.
Enter a unique sourcing rule name.
3.
Indicate whether this sourcing rule is used for all organizations (global) or a single
organization (local).
If the sourcing rule is local, you must enter an organization name; otherwise, your
current organization will be the receiving organization.
4.
Choose Copy From to copy the effectivity dates and shipping organization from
another sourcing rule into this one.
5.
Enter effectivity dates. You must enter a start date, but entering an end date is
optional.
6.
For each range of effectivity dates, you can include multiple shipping organizations.
For each shipping organization you want to include, select a sourcing type to
specify whether you make, buy, or internally transfer the item. You can also copy a
list of shipping organizations from an existing sourcing rule.
Supply Base Management 5-31
If you enter a customer organization as the receiving organization, then you cannot
select a supplier organization as the shipping organization.
Note: Suppliers and supplier sites are predefined in Oracle
Payables. (See: Suppliers, Oracle iSupplier Portal Implementation
Guide.)
7.
Enter an allocation percentage for each shipping organization. Allocation
percentage includes the number of planned orders issued to the part for the entire
the planning horizon. Your total allocation may not exceed 100.
If the allocation percentage for all the shipping organizations included within a
range of effectivity dates equals 100, Planning Active is checked. If the sourcing rule
is not planning active, the planning process will not use the rule to assign planned
orders.
Note: You cannot set the allocation percentage to less than or
greater than 100 for sourcing rules that are already assigned in
assignment sets.
8.
Enter a numeric rank value to prioritize each sourcing type.
If you have two sources with the same allocation percentage, planned orders are
sourced from the highest rank first.
9.
Select a shipping method, such as FEDEX, UPS, or rail. (See: Defining Shipping
Methods, Oracle Inventory User's Guide.)
To copy shipping organizations from an existing sourcing rule:
1.
Select a sourcing type to specify whether you make, buy, or internally transfer the
item.
2.
Choose Copy Shipping Orgs From.
3.
In the Find window, select a sourcing rule that includes the shipping organizations
you want to duplicate in this new sourcing rule.
4.
Choose OK.
To purge a sourcing rule:
1.
Select a sourcing rule name.
2.
Choose Purge.
5-32 Oracle Purchasing User's Guide
Assigning Sourcing Rules and Bills of Distribution
Once you have defined your sourcing rules and bills of distribution, you must assign
them to particular items and/or organizations. These assignments are grouped together
in assignment sets. This is where your various sourcing strategies define a particular
supply chain network.
Each assignment set to represents selection of organizations and/or items you want
planned. To influence the planning process, you must include an assignment set in your
plan options.
In an assignment set you can assign your sourcing rules and bills of distribution at
different levels, as follows:
•
an item across all organizations
•
a single item in an inventory organization
•
all items in an inventory organization
•
categories of items
•
categories of items in an inventory organization
•
all organizations
These levels allow you to assign a replenishment rule to as many or as few items as
possible. For example, a category of items could be defined as packaging material, and a
sourcing rule that identifies the suppliers could be assigned.
To assign a sourcing rule or bill of distribution:
1.
Navigate to the Sourcing Rule/Bill of Distribution Assignments window.
Supply Base Management 5-33
2.
Enter an assignment set name and description.
Note: The assignment set name specified in the profile option MRP:
Default Sourcing Assignment Set is the only one that Purchasing uses.
If you want this assignment set to be used by Purchasing, update
the profile option with this assignment set name, or create an
assignment set that matches the profile option.
3.
Select an Assigned To type. See: Assignments Hierarchy, Oracle Master
Scheduling/MRP and Supply Chain Planning User's Guide.
Note: You can assign a sourcing rule or bill of distribution to a
category only if the profile option MRP: Sourcing Rule Category Set
is set. See: Profile Options in Purchasing, page C-1.
4.
Enter an organization name, if the Assigned To type requires one.
Note: You cannot assign customers modelled as organizations to a
global sourcing rule.
5.
Enter an Item/Category if you selected Item or Item-Org as the Assign To type.
6.
Enter the sourcing rule or bill of distribution as the Type.
5-34 Oracle Purchasing User's Guide
7.
Enter the name of the sourcing rule or bill of distribution.
To purge a sourcing rule or bill of distribution:
1.
Select an assignment set name.
2.
Choose Purge.
Approved Supplier List
All procurement organizations maintain lists that associate the items and services they
buy with the companies who supply them, either formally or informally. Data stored in
a controlled, global repository containing relevant details about each
ship-from/ship-to/item relationship, is known as an Approved Supplier List (ASL). This
repository includes information about all suppliers with business statuses including
Approved, Debarred, or New.
Use the Approved Supplier List and Supplier-Item Attributes windows to specify
blanket purchase agreements, contract purchase agreements, or quotations as source
documents for a particular item and supplier or particular item category (commodity)
and supplier. Purchasing automatically defaults this source document information,
such as the Buyer, supplier Contact, and Supplier Item Number, for the item or
commodity onto the requisition line. Standard purchase orders get source document
information from global agreements and quotations. Requisitions get source document
information from blanket purchase agreements, contract purchase agreements, or
quotations. See: Defining the Supplier and Commodity/Item Combination, page 5-40.
See: Defining the Supplier/Item Attributes, page 5-43.
Note: Purchasing can also search for the most current source
documents for you, without your setting up the Approved Supplier
List, if you set the profile option PO: Automatic Document Sourcing to
Yes. See: Setting Up Automatic Sourcing, page 5-27
Related Topics
Defining Approved Supplier Statuses, page 5-37
Overview of the Approved Supplier List, Oracle Supplier Scheduling User's Guide
Main Features of Oracle Supply Chain Planning, Oracle Master Scheduling/MRP and
Supply Chain Planning User's Guide
Overview of Automatic Sourcing, page 5-24
ASL Repository Maintenance
Through maintenance of the Approved Supplier List repository the following goals are
realized:
Supply Base Management 5-35
•
Supports Supplier Certification programs by providing a single store of information
regarding a supplier's current status.
•
Helps design engineers achieve higher quality designs at a lower total cost through
the re-use of preferred suppliers in new designs. Avoids supply base proliferation
or unnecessary design dependence on 'difficult' suppliers.
•
Eliminates redundant sourcing efforts within departments, and across
organizations. Facilitates a more global approach to contract negotiation.
•
Provides immediate procurement visibility when a supplier is assigned an
unfavorable status. This 'early warning' can help prevent problem replication in
multiple organizations.
•
Complies with external Quality System process requirements like ISO 9001/9002.
If Oracle Quality is implemented, eRecord tracking of ASL changes can be done. See
FDA CFR 21 Part 11, Oracle Quality User's Guide.
•
Provides storage for general data attributes that are unique to the supplier/item
intersection.
•
Maintains lists of supplier 'candidates' by commodity or item for future
consideration.
ASL Business Needs
Using Oracle Purchasing Approved Supplier List, you can:
•
Set approval/certification status at the appropriate level for your business. For
example, approve a supplier for a given commodity (e.g. 'Office Supplies') for
expense purchases while approving a specific supplier/site for each production
item.
•
Approve suppliers (they perform their own manufacturing), distributors (they
represent manufacturers), and manufacturers (they manufacture items marketed
and sold by distributors).
•
Define global or local ASL entries. All organizations should be able to specify their
own attributes (information about the supplier/item relationship) even if the
supplier/item status is defined as a global record. This enables individual
ship-to-organizations to determine, for example, whether they are ready to perform
supplier scheduling, their purchasing unit of measure, their default item price, etc.
•
Link the primary supplier item number with your internal item number. This
designated item will default to Purchase Order and Requisition lines.
5-36 Oracle Purchasing User's Guide
•
Specify a Review By date indicating a proactive, planned review of the business
with a longstanding supplier partner.
•
Review ASL information in a flexible inquiry format.
•
Define your own approval statuses and associate them with specific business rules.
•
Control procurement activity by preventing purchase order approval or supplier
schedule confirmation for certain supplier/item combinations.
•
Control whether Sourcing Rules must be comprised of approved suppliers.
•
Define reference information, including planning constraints such as lead time, for
the supplier/item combination.
•
Disable ASL entries. See: Defining the Supplier and Item/Commodity Combination,
page 5-40.
Related Topics
Setting Up Automatic Sourcing, page 5-27
Overview of Supplier Scheduling, Oracle Supplier Scheduling User's Guide
Sourcing Rules and Bills of Distributions, Oracle Master Scheduling/MRP and Supply
Chain Planning User's Guide
Bucket Patterns, Oracle Supplier Scheduling User's Guide
Defining Supplier Lists, page 5-81
Defining Ship-to Organization Level Defaults and Controls, Oracle Supplier Scheduling
User's Guide
Defining the Supplier/Item Attributes, page 5-43
Defining Approved Supplier Statuses, page 5-37
View Approved Suppliers, page 5-48
Defining the Supplier and Item/Commodity Combination, page 5-40
Defining Sourcing Rules, page 5-30
Defining Bills of Distributions, Oracle Master Scheduling/MRP and Supply Chain Planning
User's Guide
Defining Approved Supplier Statuses
You can create any number of Approved Supplier Statuses to describe the condition of
the Approved Supplier, ranging from fully Approved (the supplier has demonstrated
the ability to satisfy rigorous quality, cost, and delivery requirements over a sustained
period) to Debarred (no business is allowed with this supplier for a particular item or
Supply Base Management 5-37
commodity), or New if you have never placed a purchase order with the supplier.
Note: If you debar a supplier for a specific commodity (category) in the
Approved Supplier List, the supplier is prevented from supplying all
items within that commodity. However, if you approve a supplier for a
commodity, the item-specific status for the supplier still takes
precedence.
Each Approved Supplier Status can have business rules applied to manage the
characteristics of the status. You can prevent or allow certain business rules for each
status, change the name of a status, or create a status of your own. For example, the
default status of Approved allows all the default business rules: PO Approval,
Sourcing, Schedule Confirmation, and Manufacturer Linking. But you could change the
Approved status to prevent one of the Business Rules. Likewise, you can create your
own status with your own combination of Business Rules.
In the Status field in the Approved Supplier List window, Purchasing lets you choose
among these supplier statuses. Defining your own supplier statuses in this window is
optional.
To define Approved Supplier Statuses:
1.
Navigate to the Approved Supplier List Statuses window.
5-38 Oracle Purchasing User's Guide
2.
Enter a unique Status name.
3.
Enter a status Description to convey the meaning of the status.
4.
Optionally check Approved Supplier List Default to set this status as a default.
This is the status that appears as the default for suppliers you add to the Approved
Supplier List window. (You can change a supplier's status from within the
Approved Supplier List window.)
Note: You can only have one Approved Supplier Status as a
default.
5.
Optionally choose a date for Inactive On to set the time when the status will no
longer be active.
Existing Approved Supplier List entries still use the status you inactivate today.
New entries you create, however, will not.
6.
If you choose to apply Business rules to the Approved Supplier Status, choose a
Control. By choosing a Control, you either Allow or Prevent the Business Rule.
7.
Select a Business Rule.
•
PO Approval - Enables you to allow or prevent purchase order approvals
Supply Base Management 5-39
sourced to this supplier.
•
Sourcing - Enables you to allow or prevent sourcing to this supplier.
•
Schedule Confirmation - Enables you to allow or prevent schedule confirmation
for this supplier in Supplier Scheduling.
•
Manufacturer Link - In the Approved Supplier List window, you choose a
Business from one of the following: Direct (Supplier), Manufacturer, or
Distributor. If you have a Distributor defined in the Approved Supplier List
window, this Business Rule enables you to allow or prevent linking to the
Manufacturer also defined in the Approved Supplier List window.
Related Topics
Defining Planners, Oracle Master Scheduling/MRP and Supply Chain Planning User's Guide
View Approved Suppliers, page 5-48
Defining the Supplier and Item/Commodity Combination, page 5-40
Defining the Supplier and Item/Commodity Combination
Prerequisites:
•
Define items. See: Defining Items, Oracle Inventory User's Guide.
•
Create suppliers and supplier sites in the Suppliers window. See: Suppliers, Oracle
iSupplier Portal Implementation Guide.
To define the supplier and item/commodity combination:
1.
Navigate to the Approved Supplier List window.
2.
In the Organizations window that appears, choose the ship-to organization for
which you want to define Approved Supplier List (ASL) entries.
5-40 Oracle Purchasing User's Guide
3.
Choose one of the following options to which you want to assign a supplier:
•
Item - Assigns a supplier to a particular item.
•
Commodity - Assigns a supplier to a group of items belonging to a category (or
commodity).
Note: If you have defined your item in the item master with the
Must Use Approved Vendor flag set to Yes, Purchasing will use the
item level ASL when both item and commodity ASLs exist. If the
flag is set to No, both commodity and item ASLs would be
considered.
4.
Select an Item or Commodity.
5.
Choose a Business from the following:
•
Direct (Supplier): Company sells their products directly to you
If you choose Direct, choose the supplier Name and optionally, the Site.
Important: The supplier Name and Site, if you specify one,
must match the sourcing rule Supplier and Site to default the
supplier information or source document information
successfully. See: Defining Sourcing Rules, page 5-30.
Supply Base Management 5-41
•
Manufacturer: Company manufactures and sells through distributors
If you choose Manufacturer, choose the Manufacturer Name.
•
Distributor: Company sells products made by manufacturers
If you choose Distributor, choose the distributor Name and optionally, the Site.
You must associate the Distributor with a Manufacturer, meaning you must
define a Manufacturer before you define its Distributor.
6.
Choose the supplier's approval Status.
Use one of the default Statuses provided, or choose a status of your own if you
defined other statuses in the Approved Supplier List Statuses window. See:
Defining Approved Supplier Statuses, page 5-37.
If you debar a supplier for a specific commodity, the supplier is prevented from
supplying all items within that commodity. However, if you approve a supplier for
a commodity, the item-specific status for the supplier still takes precedence.
7.
Optionally choose the supplier item number.
For Suppliers and Distributors, this supplier item number defaults to your purchase
order and requisition lines, and is used to validate the source documents.
8.
Optionally choose a Review By date.
You can use this date to determine when a proactive business review will be
performed for the supplier.
9.
Choose the Record Details tabbed region.
10. Choose one of the following in Global:
•
Yes - This ASL entry is valid for all inventory organizations in your operating
unit.
•
No - This ASL entry is local-that is, valid only for the organization you chose in
the Organizations window when you first navigated to the Approved Supplier
List window.
Note: If you have two ASL entries for the same item or
commodity-one Global entry that applies to all organizations in
your company and one local entry that applies only to your
organization-the local entry takes precedence.
11. Optionally specify additional information, such as Supplier Scheduling, source
documents, and capacity details for the ASL entry.
5-42 Oracle Purchasing User's Guide
See: Defining the Supplier/Item Attributes, page 5-43.
To disable an ASL entry that you no longer want to use:
1.
In the Approved Supplier List window, identify the line (ASL entry) you want to
disable.
2.
In the Key Attributes tabbed region, select the Disabled check box for the line.
The item-supplier combination in this ASL entry is inactive for new documents that
you create. Note that disabling an ASL entry is not the same as debarring a
supplier. Debarring a supplier prevents sourcing to that supplier for that item or for
all items in that commodity. Disabling an ASL entry disables just that line. You will
still be able to source to that supplier if a separate ASL entry for the supplier is
enabled.
If you disable a local ASL entry, Purchasing uses the Global entry instead, if there is
one.
To re-enable a supplier and item/commodity combination:
•
Deselect the Disabled check box.
The item-supplier combination in this ASL entry is now active for new documents
you create.
Related Topics
Overview of Automatic Sourcing, page 5-24
Defining Sourcing Rules, page 5-30Defining Sourcing Rules,
Assigning Sourcing Rules and Bills of Distribution, page 5-33Assigning Sourcing Rules
and Bills of Distribution,
Setting Up and Implementing Sourcing Strategies, Oracle Master Scheduling/MRP and
Supply Chain Planning User's Guide
Defining the Supplier/Item Attributes, page 5-43
Defining the Supplier-Item Attributes
Use the Supplier-Item Attributes window to specify additional information for the
Approved Supplier List entry, including source document, Supplier Scheduling, and
planning constraint information.
To define the supplier and commodity-item attributes:
1.
Navigate to the Supplier-Item Attributes window by choosing the Attributes button
in the Approved Supplier List window.
Supply Base Management 5-43
Note: The Create Local button creates a copy of an existing global
Approved Supplier List entry and makes it local to your
organization. The Create Local button is not available if you are
already creating a local entry or if a local entry for the item (in this
or the Approved Supplier List window) already exists.
2.
Choose the Purchasing UOM.
3.
Choose the Release generation Method from the following options:
4.
•
Automatic Release/Review: automatically generate releases, but require a separate
step for approval. Run the Create Releases process to generate the release.
•
Automatic Release: automatically generate approved releases. You cannot choose
this option if purchase order encumbrance is on. Run the Create Releases
process to generate the release
•
Release Using AutoCreate: use the AutoCreate window or the PO Create
Documents workflow to create releases.
Enter a Price Update Tolerance only if you are importing price/sales catalog
information through the Purchasing Documents Open Interface.
5-44 Oracle Purchasing User's Guide
The Price Update Tolerance specifies the maximum percentage increase allowed to
a price for this item/supplier combination when the supplier sends updated
price/sales catalog information through the Purchasing Documents Open Interface.
This field affects only blanket purchase agreements and catalog quotations
imported through the Purchasing Documents Open Interface. See: Setting a Price
Tolerance in a Price/Sales Catalog Update, page 5-20.
5.
Optionally choose the Country of Origin.
The Country of Origin is the country in which an item is manufactured. You can
choose a Country of Origin if you specified a supplier Site in the Approved
Supplier List window.
The Country of Origin is defaulted onto purchase orders for this item/supplier
combination. However, you can change or enter the Country of Origin on the
purchase order or later on the receipt.
6.
Choose one of the following attribute groupings from the tabbed region:
•
Source Documents: lets you associate specific quotations or purchase
agreements with the supplier/item combination.
•
Supplier Scheduling: lets you associate Supplier Scheduling information with
the supplier/item combination. You can choose this option if you specified an
item and a supplier site.
•
Capacity Constraints: lets you specify capacity constraints for the supplier/item
combination. You can choose this option if you specified an item and a supplier
site.
•
Inventory: if vendor managed inventory or consigned inventory are enabled,
this region lets you specify inventory control information for the supplier/item
combination. You can choose this option if you specified an item and a supplier
site.
If you chose Source Documents:
1.
Note: Setting the profile option PO: Automatic Document Sourcing to
Yes enables Purchasing to default source documents automatically
if you prefer that rather than specifying source documents here.
See: Setting Up Automatic Sourcing.
2.
Enter a unique Seq (Sequence) Number.
The Sequence Number is used internally. If you enter more than one source
document, Oracle Purchasing will use the document with the lowest sequence
number.
Supply Base Management 5-45
3.
Select a Document Type from the following:
•
Blanket
•
Contract
•
Quotation
A requisition with a quotation or a contract purchase agreement as a source
document becomes a standard purchase order. A requisition with a blanket
purchase agreement as a source document becomes a release.
If you are creating a Blanket as a source document for Oracle Supplier Scheduling,
make sure the Supply Agreement option is selected for the blanket purchase
agreement in the Terms and Conditions window. See: Entering Purchase Order
Details Information, page 4-61. Supplier Scheduling can communicate releases
against a blanket purchase agreement only when this option is selected.
4.
Choose a Document Number.
If Purchasing does not let you enter a particular document number, it may be
because the document is frozen, canceled, or not approved, or the agreement line is
canceled. A quotation must be active.
5.
Choose a Line Number.
The Status and Effective Dates, if any, are displayed.
If this document is a global agreement the Global check box will be checked.
If you chose Supplier Scheduling:
1.
Optionally check Enable Planning Schedules and/or Enable Shipping Schedules is
you want to build Planning and/or Shipping Schedules.
If you check Enable Planning Schedules and/or Enable Shipping Schedules, you can
choose an assigned Scheduler.
2.
Check Enable AutoSchedule if you want your schedule automatically built.
3.
If you check Enable Planning Schedules and Enable AutoSchedule, you must
choose the following:
4.
•
Plan Bucket Pattern
•
Plan Schedule Type
If you check Enable Shipping Schedules and Enable AutoSchedule, you must
choose the following:
•
Ship Bucket Pattern
5-46 Oracle Purchasing User's Guide
•
5.
Ship Schedule Type
If you check Enable Planning Schedules and Enable Authorizations, you can
optionally choose up to four Resource Authorizations with their associated
timefences.
If you chose Planning Constraints:
1.
Note: The information you enter here is used by Supply Chain
Planning for planned orders. See: Overview of Supply Chain
Planning Logic, Oracle Master Scheduling/MRP and Supply Chain
Planning User's Guide.
2.
In the Processing Lead Time field, enter the number of lead days it takes to receive
this item after ordering it.
3.
Choose a Supplier Capacity Calendar pattern to define the dates upon which the
supplier delivers to this organization.
This calendar is independent of your workday calendar.
4.
5.
6.
Choose Order Modifier options to indicate ordering constraints, if any:
•
Minimum Order quantity: The minimum quantity you can order.
•
Fixed Lot Multiple: The incremental quantity you can order on top of the
Minimum Order quantity. For example, if the Minimum Order quantity is 100
and the Fixed Lot Multiple is 10, you must order at least 100, and if you order
more than that, you must order 110, 120, and so on.
Create one or more entries in the Capacity area to indicate what the capacity is
during a certain period or periods:
•
From Date: The date from which the capacity constraints take effect.
•
To Date: The date (optional) until which the capacity constraints take effect.
•
Capacity per Day: Quantity of units per day. This field is required if a From Date
is entered.
Create one or more entries in the Tolerance Fences area to indicate how the capacity
fluctuates depending on how many days in advance you order:
For example, if you enter 12 Days in Advance and a Tolerance % of 2, you can
exceed the supplier's capacity by 2 percent if you order 12 days in advance. You
must specify a Tolerance % if you specify Days in Advance.
Supply Base Management 5-47
If you chose Inventory:
1.
The information that you enter here enables use of the Vendor Managed Inventory
(VMI) and Consigned Inventory functionality within Purchasing.
For VMI check VMI Enable and:.
2.
Enter the UOM that the following minimum and maximum quantities represent.
3.
Enter the Minimum quantity level for this item.
4.
Enter the Maximum quantity level for this item.
5.
If Supply Chain Exchange (SCE) is enabled, check the Automatic Allowed box to
enable the replenishment method approval selection below.
6.
Select the replenishment Approval method of Automatic, Supplier and Buyer, or
Buyer. This field is only enabled if SCE is enabled and VMI Automatic Allowed is
checked.
For consigned inventory check Consigned from Supplier and:
1.
Enter the number of days allowed before billing in Billing Cycle (Days).
2.
The system will display the Last Billing Date.
Related Topics
AutoScheduling, Oracle Supplier Scheduling User's Guide
Resource Authorizations, Oracle Supplier Scheduling User's Guide
Defining Sourcing Rules, page 5-30
Assigning Sourcing Rules and Bills of Distribution, page 5-33
Setting Up and Implementing Sourcing Strategies, Oracle Master Scheduling/MRP and
Supply Chain Planning User's Guide
Defining the Supplier and Commodity/Item Combination, page 5-40
Paying Your Supplier, Oracle Consigned Inventory and Vendor Managed Inventory Process
Guide
View Approved Suppliers
Use the Approved Supplier List Summary window to view all the Approved Supplier
List entries. When you select and open a line in the Approved Supplier List Summary
window, the Approved Supplier List window for that supplier appears.
To view the Approved Supplier List:
1.
Navigate to the Search Approved Supplier List window from the menu. The
5-48 Oracle Purchasing User's Guide
Approved Supplier List Summary window opens.
2.
Select the Operating Unit for your search.
3.
Optionally choose or enter data into the available fields to further define your
search.
Note: Check Include Global Entries to specify that Global Entries
are to be included.
4.
Choose Find to begin the search.
Note: You can choose Clear to erase the data from the form to
redefine your search, or choose New to navigate to the Approved
Supplier List window to define new approved suppliers.
5.
Choose a record to view then choose Open to view your selection in the Approved
Supplier List window.
Entering RFQs
Entering RFQ Headers
Use the RFQs window to:
•
Enter and edit a request for quotation (RFQ)
•
Review and edit an RFQ you autocreated from on-line requisitions
Each RFQ consists of header, line, and shipment information. You can send the RFQ to
as many suppliers you want and decide how much item information to provide to the
suppliers.
There are two methods of creating an RFQ; manual entry and by copying a blanket
purchase agreement. Manual entry is described in this section below and the copy
blanket agrement to RFQ process is described in detail in the Purchase Orders section.
See: Copying Purchase Orders, page 4-98.
For information on the difference between RFQs and quotations, and the different types
of RFQs and quotations, see: RFQs and Quotations, page 5-4.
Note: Whether or not you send an RFQ, suppliers can send you catalog
quotations electronically, through the Purchasing Documents Open
Interface. See: Receiving Price/Sales Catalog Information Electronically,
Supply Base Management 5-49
page 5-18.
Prerequisites:
•
Define suppliers and supplier sites. See: Suppliers, Oracle iSupplier Portal
Implementation Guide.
•
Define supplier lists. See: Defining Supplier Lists, page 5-81.
•
Define locations. See: Defining Locations, page 1-17.
•
Define buyers. See: Defining Buyers, page 1-19.
•
Define unit of measure classes. See: Defining Unit of Measure Classes, .
•
Define units of measure. See: Defining Units of Measure, Oracle Inventory User's
Guide.
•
Define payment terms. See: Defining Payment Terms, Oracle Payables User's Guide.
To enter RFQ header information:
1.
Navigate to the RFQs window. Purchasing displays today's date as the Created date
and the functional Currency from your ledger.
5-50 Oracle Purchasing User's Guide
2.
Select the Operating Unit for this RFQ.
3.
Enter a unique number for the RFQ. In the Purchasing Options window, you can
choose whether RFQ numbers are numeric or alphanumeric and whether
Purchasing automatically generates them when you save your changes. See:
Defining Numbering Options, page 1-40.
4.
In the Type field, enter one of the document names defined for RFQs. The list of
values lists the Document Type (Document Name) and Quotation Class from the
Document Types window. For existing RFQs, the list of values includes only RFQs
with the same Quotation Class. See: Defining Document Types, page 1-66. See also:
Types of Quotations and RFQs, page 5-5.
5.
Enter the Ship-To and Bill-To locations for the items on the RFQ. See: Defining
Locations, page 1-17.
6.
Use the Status field to control the status of the RFQ:
•
In Process - The initial status when you create the RFQ.
•
Active - Choose this status when the RFQ is complete and you are ready to send
it to your suppliers. Only Active RFQs are printed.
•
Printed - The status assigned to the RFQ when you have printed at least one
copy of it. You must change the status to Active if you want to reprint the RFQ.
Supply Base Management 5-51
•
Closed - Choose this status to close the RFQ when all suppliers have responded
or when you no longer want responses. When you close an RFQ, Purchasing
deletes all follow up notifications associated with it.
7.
Enter the Due Date when you want your suppliers to reply. Purchasing prints the
reply due date on the RFQ. Purchasing notifies you if the current date is between
the RFQ reply due date and the close date and if the RFQ is Active. Purchasing
knows that a supplier replied to an RFQ if you enter a quotation for this supplier
referencing the RFQ. See: Viewing and Responding to Notifications, page 2-29. See:
Entering Quotation Headers, page 5-62.
8.
Enter the Reply/Receive Via code for the method you want the supplier to use to
send the quotation. For example, by mail, telephone, or FAX. See: Defining Lookup
Codes, page 1-54.
9.
Enter the Close Date for the RFQ. Purchasing prints the close date on the RFQ.
Purchasing notifies you if the current date is between the RFQ reply due date and
the close date and if the RFQ is Active. Purchasing warns you when you enter a
quotation against this RFQ after the close date. See: Viewing and Responding to
Notifications, page 2-29.
10. Select Require Quote Approval to enforce approval of any quotation referencing
this RFQ before the quotation can be used for a purchase order.
11. Purchasing displays your name as the Buyer. You can forward the RFQ to another
buyer by choosing the name of this buyer from the list of values. The buyer you
enter receives all notifications regarding this RFQ.
12. Enter the beginning and ending Effectivity Dates for the supplier quotation.
13. Enter RFQ lines in the Lines tabbed region: See: Entering RFQ Lines, page 5-53.
To enter supplier information:
•
Select the Suppliers button to open the RFQ Suppliers window. See: Entering RFQ
Supplier Information, page 5-55
To enter currency information:
•
Select the Currency button to open the Currency window. See: Entering Currency
Information, page 4-60.
To enter terms and conditions information:
•
Select the Terms button to open the RFQ Terms window. See: Entering RFQ Terms
Information, page 5-57.
To enter shipment information:
•
When the Quotation Class of the header Type is Bid, you can select the Shipments
button to open the RFQ Shipments window. See: Entering RFQ Shipment
5-52 Oracle Purchasing User's Guide
Information, page 5-58.
To enter price break information:
•
When the Quotation Class of the header Type is Catalog, you can select the Price
Break button to open the Price Breaks window. See: Entering RFQ Price Break
Information, page 5-60.
Entering RFQ Lines
Use the Items tabbed region in the RFQs window to enter and edit RFQ lines.
To enter an RFQ line:
1.
Select the Items tabbed region in the RFQs window.
2.
Enter a unique Number for the RFQ line.
3.
Enter the line Type for the item. When you enter a line type, Purchasing
automatically copies the corresponding purchasing category, unit, and unit price.
You can enter predefined items only when you choose a quantity based line type.
Purchasing defaults the value you define in the Purchasing Options window. See:
Defining Default Options, page 1-37. See: Defining Line Types, page 1-61.
4.
Enter the Item for your RFQ line. Purchasing retrieves the item description,
purchasing category, and unit of measure. If you do not enter a predefined item,
you must provide a purchasing category and item description for the RFQ line. For
amount based line types, the cursor does not enter this field. See: Defining Items,
Oracle Inventory User's Guide.
Supply Base Management 5-53
5.
Enter the Revision number for the item on the requisition line.
6.
Enter the purchasing category for your RFQ line. If you enter a predefined item,
Purchasing supplies the purchasing category.
7.
Enter the item Description for your RFQ line. If you enter an item, Purchasing
supplies the item description. You can set up the item definition so that you can
override the item description for this particular RFQ. See: Defining Items, Oracle
Inventory User's Guide.
8.
Enter the UOM for your RFQ line. If you enter an item number, Purchasing
supplies the unit of measure. For amount based line types, the cursor does not enter
this field.
9.
Enter an optional Target Price for the RFQ line. You may want to provide a target
price on the RFQ line for negotiation purposes. For amount based line types,
Purchasing uses a target price of 1.
10. Enter the supplier's number for the item.
To enter additional RFQ line information:
1.
Select the More tabbed region in the RFQs window. You can enter optional
information in the fields described in the following steps.
2.
Enter a unique line number for your RFQ line. Purchasing defaults the next
available line number.
3.
Enter the UN Number for the item on the RFQ line. See: Defining UN Numbers,
page 1-53.
4.
Enter the Hazard class for the item on the RFQ line. If you enter a UN number,
Purchasing displays the corresponding hazard class if one has been defined. See:
Defining Hazard Classes, page 1-52.
5.
Enter the Minimum Order Quantity for the item on the RFQ line.
6.
Enter the Maximum Order Quantity for the item on the RFQ line.
7.
Optionally enter a Project Number.
8.
Optionally enter a Task Number.
9.
Optionally enter a Contract Number for Oracle Project Contracts.
10. Optionally enter a Revision for Oracle Project Contracts.
11. Enter a note to the supplier about this item. This note prints on the RFQ.
5-54 Oracle Purchasing User's Guide
To copy RFQs to quotations:
•
Select Copy Document on the Tools menu to open the Copy Document window.
See: Copying Quotations from RFQs, page 5-74.
Related Topics
Entering RFQ Headers, page 5-49
Entering RFQ Supplier Information, page 5-55
Entering RFQ Terms Information, page 5-57
Entering RFQ Shipment Information, page 5-58
Entering RFQ Price Break Information, page 5-60
Entering Currency Information, page 4-60
Oracle Project Management User Guide, Oracle Project Management User Guide
Oracle Project Manufacturing Implementation Manual
Entering RFQ Supplier Information
Use the RFQ Suppliers window to:
•
Enter the suppliers to which this RFQ will be sent. You can also delete suppliers
from the RFQ until you have printed the RFQ for them.
•
Review the supplier activity.
To enter RFQ supplier information:
1.
Navigate to the RFQ Suppliers window by selecting the Suppliers button in the
RFQs window. For each supplier that you enter, Purchasing displays the Printed
and Responded dates as well as the Count of the number of times the RFQ has been
printed. The Responded date is the receipt date recorded for the quotation from the
supplier.
Supply Base Management 5-55
The Include In Next RFQ Printing check box is checked when you add a supplier.
You can postpone printing the RFQ for a supplier by deselecting the check box.
After you print the RFQ for a supplier, Purchasing deselects this field. If you want
to reprint the RFQ for a supplier, you must use this window to select the field
again.
2.
Enter a unique sequence number for the supplier on the RFQ Suppliers list.
Purchasing uses this sequence number to print your RFQs for these suppliers.
3.
Enter the name of the active Supplier you want to place on the RFQ Supplier list.
The list of values displays the supplier name, number, Tax ID number, and VAT
number.
4.
Enter the Supplier Site you want to place on the RFQ Supplier list for this supplier.
You can choose only sites that you defined as RFQ Only suppliers. You cannot enter
the same supplier site twice.
5.
Enter the name of the Contact for this site
6.
If you want to postpone printing the RFQ for a supplier, you can deselect Select for
Printing.
To add suppliers from supplier lists:
1.
Select the Add From List button in the RFQ Suppliers window to open the Supplier
Lists window. This window is a display-only version of the Supplier Lists window,
but includes only the Supplier List name, Description, and a Count of the number
of suppliers on the list. See: Defining Supplier Lists, page 5-81.
2.
Select any supplier list for which you want to copy all suppliers to the RFQ.
Suppliers already on the RFQ are omitted.
3.
Select the Apply button to close the window and add these suppliers to the RFQ.
5-56 Oracle Purchasing User's Guide
Otherwise, you can select the Cancel button to return to the RFQ Suppliers window
without adding suppliers from a list.
Related Topics
Entering Currency Information, page 4-60
Entering RFQ Headers, page 5-49
Entering RFQ Lines, page 5-53
Entering RFQ Terms Information
Use the RFQ Terms window to enter terms and conditions information for RFQs.
To enter RFQ terms and conditions information:
1.
Navigate to the RFQ Terms window by selecting the Terms button in the RFQs
window. All terms and conditions information is optional. The defaults are from
the Financial Options window. See: Defining Financials Options, Oracle Payables
User's Guide.
2.
Enter the Payment terms for the RFQ. Purchasing displays default payment terms
that you can accept or change. See: Defining Payment Terms, Oracle Payables User's
Guide.
3.
Enter the Freight terms for the RFQ. Purchasing displays default freight terms that
you can accept or change. See: Defining Lookup Codes, page 1-54
4.
Enter the freight Carrier for shipment of the RFQ. Purchasing displays a default
freight carrier that you can accept or change. See: Defining Freight Carriers, Oracle
Shipping Execution Guide.
5.
Enter the FOB point for the RFQ. Purchasing displays a default free on board (FOB)
designation that you can accept or change. See: Defining Lookup Codes, page 1-54.
6.
Enter a Note To Supplier. You can enter up to 240 characters in this field.
Supply Base Management 5-57
Related Topics
Entering RFQ Headers, page 5-49
Entering RFQ Lines, page 5-53
Entering RFQ Shipment Information
Use the RFQ Shipments window to enter and review shipment information for Bid
RFQs.
Important: Use this window to request as many shipment quotations as
you want. You might want to provide multiple shipments if you want
to receive quotations from your suppliers for different ship-to locations,
quantities, or other criteria.
To enter RFQ shipment information:
1.
Navigate to the RFQ Shipments window by selecting the Shipments button in the
RFQs window. This button is available only when the RFQ header Type has a
Quotation Class of Bid. See: Entering RFQ Headers, page 5-49.
2.
In the Shipments tabbed region, enter the shipment Number. Purchasing supplies
shipment numbers in increments of one.
3.
Enter the Organization.
4.
Enter the Ship-To location for the quotation shipment. Purchasing defaults the
ship-to location from the RFQ header.
5.
Enter the Quantity for which you want to receive a quotation from your supplier.
5-58 Oracle Purchasing User's Guide
6.
Enter the shipping UOM for the RFQ shipment line. You may want the supplier to
ship the item in different units of measure depending on the quantity ordered.
Purchasing defaults the unit of measure from the RFQ line. For amount based line
types, the field is not applicable.
7.
Enter the unit Price for the RFQ shipment line. Leave this field blank if you want
the supplier to provide a price independent of the price you want. For amount
based line types, the cursor does not enter this field, and the price is set to 1.
8.
Enter the Last Accept Date.
9.
Enter the Need-By date.
10. Select Firm to indicate that the bid is firmed.
The Approved check box indicates that there is an approved quotation shipment
referencing this line.
To enter additional RFQ shipment information:
1.
Select the More tabbed region in the RFQ Shipments window.
2.
Enter the shipment number. Purchasing provides shipment numbers in increments
of one.
3.
Choose the Match Approval Level. The default is from the Purchasing Options
window. See: Defining Default Options, page 1-37.
4.
5.
•
Two-Way - Purchase order and invoice quantities must match within tolerance.
•
Three-Way - Purchase order, receipt, and invoice quantities must match within
tolerance.
•
Four-Way - Purchase order, receipt, inspection, and invoice quantities must
match within tolerance.
Enter the Quantity Received Exception option. See: Defining Receiving Options,
page 1-41.
•
None - Receipts may exceed the selected tolerance.
•
Reject - Receipts cannot exceed the selected tolerance.
•
Warning - The receiver gets a warning message, but receipts can exceed the
tolerance.
Enter the Quantity Received Tolerance. The default is from the Receiving Options
window. See: Defining Receiving Options, page 1-41.
Supply Base Management 5-59
Related Topics
Entering RFQ Headers, page 5-49
Entering RFQ Lines, page 5-53
Entering RFQ Price Break Information
Use the RFQ Price Breaks window to enter pricing information for RFQs.
Important: Use this window to request as many price breaks as you
want. You can provide multiple price breaks if you want to receive
quotations from your suppliers for different terms, ship-to locations, or
quantities.
To enter RFQ price break information:
1.
Navigate to the RFQ Price Breaks window by selecting the Price Breaks button in
the RFQs window. This button is available only when the RFQ header Type has a
Quotation Class of Catalog.
2.
In the Price Break tabbed region, enter the line Number. Purchasing supplies line
numbers in increments of one.
3.
Enter the Quantity at this price.
4.
Enter the shipping UOM for the RFQ price break line. You may want the supplier to
ship the item in different units of measure depending on the quantity you order.
Purchasing defaults the unit of measure from the RFQ line.
5.
Enter the unit Price for the RFQ price break line. You might want to provide price
discounts to indicate to the supplier the prices you would like to receive. Leave this
5-60 Oracle Purchasing User's Guide
field blank if you want the supplier to provide a price independent of the price you
want
6.
Enter the Organization.
7.
Enter the Ship-To location for the quotation line shipment. Purchasing defaults the
ship-to location from the RFQ header.
8.
Enter the Discount percentage from the unit price for the RFQ line. If you enter a
unit price and break price for this line, Purchasing does not automatically calculate
the discount. You should provide either a break price or a discount, not both. If you
enter both values for the RFQ, Purchasing prints only the break price on the RFQ. If
you provide a discount without providing a break price, Purchasing prints the
discount on the RFQ.
9.
Enter the Effective Date when you want to be able to start using the quotation from
your supplier. If you leave this field blank, Purchasing applies the quotation
effective date from the RFQ Header window. You can also enter lead time
information instead of date information.
10. Enter the Expiration Date when you no longer need the quotation from your
supplier. If you leave this field blank, Purchasing applies the expiration date from
the RFQ header.
11. Enter the Lead Time for this RFQ line.
12. Enter the UOM you want to use to define the lead time.
13. Enter the Payment Terms for the RFQ. Purchasing prints these terms on the RFQ
only if they are different from the terms on the RFQ header. The default is the
payment terms from the RFQ header.
14. Enter the Freight Terms for the RFQ. Purchasing prints these terms on the RFQ only
if they are different from the freight terms on the RFQ header. The default is the
freight terms from the RFQ header.
15. Enter the FOB point for your RFQ Line. Purchasing prints this FOB point on the
RFQ only if it is different from the FOB point on the RFQ header. The default is the
FOB name from the RFQ header.
16. Enter the freight carrier for your RFQ. Purchasing prints this carrier on the RFQ
only if it is different from the carrier on the RFQ header. The default is the carrier
from the header.
The Approved check box indicates that there is an approved quotation shipment
referencing this line.
Supply Base Management 5-61
To enter additional RFQ price break information:
1.
Select the More tabbed region in the RFQ Price Breaks window.
2.
Enter the line number. Purchasing provides line numbers in increments of one.
3.
Choose the Match Approval Level. The default is from the Purchasing Options
window. See: Defining Default Options, page 1-37.
•
Two-Way - Purchase order and invoice quantities must match within tolerance.
•
Three-Way - Purchase order, receipt, and invoice quantities must match within
tolerance.
•
Four-Way - Purchase order, receipt, inspection, and invoice quantities must
match within tolerance.
4.
Enter the Quantity Received Tolerance. The default is from the Receiving Options
window. See: Defining Receiving Options, page 1-41.
5.
Enter the Quantity Received Exception option. See: Defining Receiving Options,
page 1-41.
•
None - Receipts may exceed the selected tolerance.
•
Reject - Receipts cannot exceed the selected tolerance.
•
Warning - The receiver gets a warning message, but receipts can exceed the
tolerance.
Related Topics
Entering RFQ Headers, page 5-49
Entering RFQ Lines, page 5-53
Entering Quotations
Entering Quotation Headers
Use the Quotations window to:
•
Enter and edit quotations
•
Review and edit quotations you copied from RFQs
For information on the difference between RFQs and quotations, and the different types
of RFQs and quotations, see: RFQs and Quotations, page 5-4.
5-62 Oracle Purchasing User's Guide
Note: You can also receive catalog quotations electronically from your
suppliers through the Purchasing Documents Open Interface. See:
Receiving Price/Sales Catalog Information Electronically, page 5-18.
Prerequisites:
•
Define suppliers and supplier sites. See: Suppliers, Oracle iSupplier Portal
Implementation Guide..
•
Define supplier lists See: Defining Supplier Lists, page 5-81.
•
Define locations. See: Defining Locations, page 1-17.
•
Define buyers. See: Defining Buyers, page 1-19.
•
Define unit of measure classes. See: Defining Unit of Measure Classes, Oracle
Inventory User's Guide.
•
Define units of measure. See: Defining Units of Measure, Oracle Inventory User's
Guide.
•
Define payment terms. See: Defining Payment Terms, Oracle Payables User's Guide.
To enter quotation header information:
1.
Navigate to the Quotations window by selecting Quotations from the menu.
Purchasing displays the functional Currency from your ledger.
Supply Base Management 5-63
2.
Select the Operating Unit for the quotation.
3.
Enter a unique number for the quotation. In the Purchasing Options window, you
can choose whether quotation numbers are numeric or alphanumeric and whether
Purchasing automatically generates them when you save your changes. See:
Defining Numbering Options, page 1-40.
4.
In the Type field, enter one of the document names defined for quotations. The list
of values lists the Document Type (Document Name) and Quotation Class from the
Document Types window. For existing quotations, the list of values includes only
quotations with the same Quotation Class. See: Defining Document Types, page 166. See also: Types of Quotations and RFQs, page 5-5.
5.
If you copied this quotation from an existing RFQ, Purchasing displays the
corresponding RFQ number, which you can override.
You can also manually provide an RFQ number. Purchasing verifies the supplier
and supplier site you provide and lets you choose from a corresponding list of
RFQs. If you want to enter a quotation as a response to an RFQ for a supplier you
did not provide on the RFQ supplier list, you need to modify the RFQ supplier list
first. If you change the supplier or supplier site information on this quotation after
you enter an RFQ number, Purchasing removes the RFQ number, and you must
re-enter it. See: Entering RFQ Supplier Information, page 5-55.
If you enter the number of an RFQ for which you already entered a response for
this supplier and supplier site, Purchasing displays a warning message but permits
5-64 Oracle Purchasing User's Guide
your entry.
Important: If you are entering a quotation that is a response to an
RFQ you previously sent to the supplier, you need to provide this
RFQ number to indicate to Purchasing that the supplier responded.
6.
Enter the Supplier for this quotation. When you enter a supplier name, Purchasing
uses the default terms, conditions, and currency information for this supplier in the
Quotation Terms and Currency windows. The list of values displays the supplier
name, number, Tax ID number, and VAT number.
7.
Enter the supplier Site for this quotation. You do not need to provide a supplier site
for a quotation. When you enter a supplier site, Purchasing uses the default terms,
conditions, and currency information for this supplier site in the Quotation Terms
and Currency windows.
8.
Enter a supplier Contact for this quotation.
9.
Enter the Ship-To and Bill-To locations for the items on the quotation. See: Defining
Locations, page 1-17.
10. Use the Status field to control the status of the quotation:
•
In Process - The initial status when you create the quotation. Purchasing sends
you notifications that the quotation is awaiting completion.
•
Active - Choose this status when the quotation is complete and you are ready to
approve it. Only Active quotations can be approved.
•
Closed - When you enter a quotation, you provide an expiration date for it.
Purchasing sends you a notification when the quotation approaches expiration
using the warning delay you provided in the quotation header. You can
manually close the quotation to acknowledge the notification. If you do not
acknowledge the notification by closing the quotation, the status of your
quotation is still Active. You cannot use Closed quotation information on
purchase orders.
11. Enter the Supplier Quote number.
12. Select Approval Required to indicate that approval is required to purchase goods
based on this quotation.
13. The Response Date is the date you actually received the quotation. Purchasing
defaults today's date as the response date, but you can change this date.
14. Enter the beginning and ending Effective Dates for the quotation.
Supply Base Management 5-65
15. Purchasing displays your name as the Buyer. You can forward the quotation to
another buyer by choosing the name of this buyer from the list of values. The buyer
you enter receives all notifications regarding this quotation.
16. Enter quotation lines in the Lines tabbed region. See: Entering Quotation Lines,
page 5-66.
To approve the quotation:
•
Select the Approve button to open the Approve Entire Quotation window. See:
Approving Entire Quotations, page 5-79.
To enter currency information:
•
Select the Currency button to open the Currency window. See: Entering Currency
Information, page 4-60.
To enter terms and conditions information:
•
Select the Terms button to open the Quotation Terms window. See: Entering
Quotation Terms Information, page 5-69.
To enter shipment information:
•
When the Quotation Class of the header Type is Bid, you can select the Shipments
button to open the Quotation Shipments window. See: Entering Quotation
Shipment Information, page 5-70.
To enter price break information:
•
When the Quotation Class of the header Type is Catalog, you can select the Price
Breaks button to open the Price Breaks window. See: Entering Quotation Price
Break Information, page 5-72.
Entering Quotation Lines
Use the Items tabbed region in the Quotations window to enter and edit quotation lines.
Important: If your supplier gives you a single quotation that is
independent of the quantity you order, you must still provide at least
one shipment quotation since you approve quotation information by
shipment rather than by line. Therefore, if your supplier provides you
with a base unit price only, you can enter the base unit price here, but
you must also provide a shipment with the same base unit price.
To enter a quotation line:
1.
Select the Items tabbed region in the Quotations window.
5-66 Oracle Purchasing User's Guide
2.
Enter a unique Number for the quotation line.
3.
Enter the line Type for the item. When you enter a line type, Purchasing
automatically copies the corresponding purchasing category, unit, and unit price.
You can enter predefined items only when you choose a quantity based line type.
Purchasing defaults the value you define in the Purchasing Options window. See:
Defining Default Options, page 1-37. See: Defining Line Types, page 1-61.
4.
Enter the Item for your quotation line. Purchasing retrieves the item description,
purchasing category, and unit of measure. If you do not enter a predefined item,
you must provide a purchasing category and item description for the quotation
line. For amount based line types, the cursor does not enter this field. See: Defining
Items, Oracle Inventory User's Guide.
5.
Enter the Revision number for the item on the requisition line.
6.
Enter the purchasing Category for your quotation line. If you enter a predefined
item, Purchasing supplies the purchasing category.
7.
Enter the item Description for your quotation line. If you enter an item, supplies the
item description. You can set up the item definition so that you can override the
item description for this particular quotation. See: Defining Items, Oracle Inventory
User's Guide.
8.
Enter the UOM for your quotation line. If you enter an item number, Purchasing
supplies the unit of measure. For amount based line types, the cursor does not enter
Supply Base Management 5-67
this field.
9.
Enter the unit Price for the quotation line. For amount based line types, Purchasing
uses a target price of 1.
10. Enter the supplier's number for the item.
To enter additional quotation line information:
1.
Select the More tabbed region in the Quotations window. You can enter optional
information in the fields described in the following steps.
2.
Enter a unique line number for your quotation line. Purchasing defaults the next
available line number.
3.
Enter the UN Number for the item on the quotation line. See: Defining UN
Numbers, page 1-53. If you enter a UN number, Purchasing displays the
corresponding hazard class if one has been defined.
4.
Enter the Hazard class for the item on the quotation line. See: Defining Hazard
Classes, page 1-52.
5.
Enter the Minimum Order Quantity for the item on the quotation line.
6.
Enter the Maximum Order Quantity for the item on the quotation line.
7.
Optionally enter a Project Number.
8.
Optionally enter a Task Number.
9.
Optionally enter a Contract Number for Oracle Project Contracts.
10. Optionally enter a Revision for Oracle Project Contracts.
11. Enter a Note From Supplier about this item.
To approve the quotation:
•
Select the Approve button to open the Approve Entire Quotation window. The
Approve button is disabled if the quotation is not active and doesn't have at least
one shipment. See: Approving Entire Quotations, page 5-79.
Related Topics
Entering Currency Information, page 4-60
Entering Quotation Headers, page 5-62
Entering Quotation Terms Information, page 5-69
Entering Quotation Shipment Information, page 5-70
5-68 Oracle Purchasing User's Guide
Oracle Project Management, Oracle Project Management User Guide
Oracle Project Manufacturing Implementation Manual
Entering Quotation Terms Information
Use the Quotation Terms window to enter terms and conditions information for
quotations.
To enter quotation terms and conditions information:
1.
Navigate to the Quotation Terms window by selecting the Terms button in the
Quotations window. All terms and conditions information is optional. If you
created the quotation using the Copy Document window, the defaults are from the
RFQ. Otherwise, the defaults are from the supplier site, supplier, or the Financial
Options window. See: Defining Financials Options, Oracle Payables User's Guide.
2.
Enter the Payment terms for the quotation. Purchasing displays default payment
terms that you can accept or change. See: Defining Payment Terms, Oracle Payables
User's Guide.
3.
Enter the Freight terms for the quotation. Purchasing displays default freight terms
that you can accept or change. See: Defining Lookup Codes, page 1-54
4.
Enter the freight Carrier for shipment of the quotation. Purchasing displays a
default freight carrier that you can accept or change. See: Defining Freight Carriers,
Oracle Shipping Execution Guide.
5.
Enter the FOB point for the quotation. Purchasing displays a default free on board
(FOB) designation that you can accept or change. See: Defining Lookup Codes, page
1-54.
6.
Enter a Note To Supplier. You can enter up to 240 characters in this field.
7.
Enter the method the supplier used to answer to your RFQ. For instance, you could
ask your supplier to send a quotation by mail, telephone, or FAX. See: Defining
Lookup Codes, page 1-54.
Supply Base Management 5-69
8.
Enter the Warning Delay (in days) that you want Purchasing to use when sending
you an on-line notification before the quotation expiration date.
9.
Save your work.
Related Topics
Entering Quotation Headers, page 5-62
Entering Quotation Lines, page 5-66
Entering Quotation Shipment Information
Use the Quotation Shipments window to enter shipment information for bid quotations.
To enter quotation shipment information:
1.
Click Shipments to open the Quotation Shipments window.
2.
In the Shipments tabbed region, enter the shipment Number. Purchasing supplies
shipment numbers in increments of one.
3.
Enter the Organization.
4.
Enter the Ship-To location for the quotation shipment. Purchasing defaults the
ship-to location from the quotation header.
5.
Enter the Quantity for which you received a quotation from your supplier.
6.
Enter the shipping UOM for the quotation shipment line. You may want the
supplier to ship the item in different units of measure depending on the quantity
ordered. Purchasing defaults the unit of measure from the quotation line. For
amount based line types, the field is not applicable.
5-70 Oracle Purchasing User's Guide
7.
Enter the unit Price for the quotation shipment line. For amount based line types,
the cursor does not enter this field, and the price is set to 1.
8.
Enter the Last Accept Date.
9.
Enter the Need-By date.
10. Select Firm to indicate that the bid is firmed.
The Approved check box indicates whether the shipment has been approved.
To enter additional quotation shipment information:
1.
Select the More tabbed region in the Quotation Shipments window.
2.
Enter the shipment number. Purchasing provides shipment numbers in increments
of one.
3.
Choose the Match Approval Level. The default is from the Purchasing Options
window. See: Defining Default Options, page 1-37.
•
Two-Way - Purchase order and invoice quantities must match within tolerance.
•
Three-Way - Purchase order, receipt, and invoice quantities must match within
tolerance.
•
Four-Way - Purchase order, receipt, inspection, and invoice quantities must
match within tolerance.
4.
Enter the Quantity Received Tolerance. The default is from the Receiving Options
window. See: Defining Receiving Options, page 1-41.
5.
Enter the Quantity Received Exception option. See: Defining Receiving Options,
page 1-41.
•
None - Receipts may exceed the selected tolerance.
•
Reject - Receipts cannot exceed the selected tolerance.
•
Warning - The receiver gets a warning message, but receipts can exceed the
tolerance.
To approve the quotation:
•
Select the Approve button to open the Approve Entire Quotation window. See:
Approving Entire Quotations, page 5-79.
Related Topics
Entering Quotation Headers, page 5-62
Supply Base Management 5-71
Entering Quotation Lines, page 5-66
Entering Quotation Price Break Information
Use the Quotation Price Breaks window to enter pricing information for catalog
quotations.
To enter quotation pricing information:
1.
Select the Price Breaks button to open the Quotation Price Breaks window. This
button is available only when the header Type has a Quotation Class of Catalog.
2.
In the Price Break tabbed region, enter the price break line Number. Purchasing
supplies line numbers in increments of one.
3.
Enter the Quantity for this price.
4.
Enter the shipping UOM for the quotation price break. The supplier may ship the
item in different units of measure depending on the quantity you order. Purchasing
defaults the unit of measure from the quotation line.
5.
Enter the unit Price for the quotation price break.
6.
Enter the Organization.
7.
Enter the Ship-To location for the quotation price break. Purchasing defaults the
ship-to location from the quotation header.
8.
Enter the Discount percentage from the unit price for the quotation price break. If
you enter a unit price and break price for this shipment, Purchasing does not
automatically calculate the discount. You should provide either a break price or a
discount, not both. If you enter both values for the quotation, Purchasing prints
only the break price on the quotation. If you provide a discount without providing
5-72 Oracle Purchasing User's Guide
a break price, Purchasing prints the discount on the quotation.
9.
Enter the Effective Date when you want to be able to start using this quotation. If
you leave this field blank, Purchasing applies the quotation effective date from the
Quotation Header window. You can also enter lead time information instead of
date information.
10. Enter the Expiration Date when you no longer need the quotation. If you leave this
field blank, Purchasing applies the expiration date from the quotation header.
11. Enter the Lead Time for this price break.
12. Enter the UOM you want to use to define the lead time.
13. Enter the Payment Terms for the quotation. Purchasing prints these terms on the
quotation only if they are different from the terms on the quotation header. The
default is the payment terms from the quotation header.
14. Enter the Freight Terms for the price break. Purchasing prints these terms on the
quotation only if they are different from the freight terms on the quotation header.
The default is the freight terms from the quotation header.
15. Enter the FOB point for the price break. Purchasing prints this FOB point on the
quotation only if it is different from the FOB point on the quotation header. The
default is the FOB name from the quotation header.
16. Enter the freight Carrier for the price break. Purchasing prints this carrier on the
quotation only if it is different from the carrier on the quotation header. The default
is the carrier from the header.
To enter additional quotation pricing information:
1.
Select the More tabbed region in the Quotation Price Breaks window.
2.
Enter the line number. Purchasing provides line numbers in increments of one.
3.
Choose the Match Approval Level. The default is from the Purchasing Options
window. See: Defining Default Options, page 1-37.
4.
•
Two-Way - Purchase order and invoice quantities must match within tolerance.
•
Three-Way - Purchase order, receipt, and invoice quantities must match within
tolerance.
•
Four-Way - Purchase order, receipt, inspection, and invoice quantities must
match within tolerance.
Enter the Quantity Received Tolerance. The default is from the Receiving Options
Supply Base Management 5-73
window. See: Defining Receiving Options, page 1-41.
5.
Enter the Quantity Received Exception option. See: Defining Receiving Options,
page 1-41.
•
None - Receipts may exceed the selected tolerance.
•
Reject - Receipts cannot exceed the selected tolerance.
•
Warning - The receiver gets a warning message, but receipts can exceed the
tolerance.
To approve the quotation:
•
Select the Approve button to open the Approve Entire Quotation window. See:
Approving Entire Quotations, page 5-79.
Related Topics
Entering Quotation Headers, page 5-62
Entering Quotation Lines, page 5-66
Copying Quotations from RFQs
Use the Copy Documents window to create quotations directly from RFQs. Quotations
you receive in response to an RFQ usually match the format of your RFQ. To create a
quotation from an RFQ, open the original RFQ and choose Copy Document from the
Tools menu. You can copy the complete RFQ or part of it to your quotation. You can
then edit the quotation to provide detailed quotation line information.
Project and task information, if any, is carried from an RFQ when you copy a quotation
from it.
To copy a quotation from an RFQ:
1.
In the RFQs window, open the RFQ you want to copy.
2.
Navigate to the Copy Document window See: Entering RFQ Lines, page 5-53.
3.
Enter the copy-from Action: Entire RFQ, RFQ Header Only, or RFQ Header and
Lines.
4.
Enter a quotation Number if you are using manual quotation number entry.
Otherwise, Purchasing assigns a number for you when you save your work. See:
Defining Numbering Options, page 1-40.
5.
Enter the document Type. This is one of the document names defined for RFQs. The
list of values lists the Document Type (Document Name) and Quotation Class from
the Document Types window. See: Defining Document Types, page 1-66.
5-74 Oracle Purchasing User's Guide
6.
Enter the name of the active Supplier. The list of values displays the supplier name,
Hold Status, 1099 Number, and VAT Registration Number. See: Suppliers, Oracle
iSupplier Portal Implementation Guide.
7.
Enter the Supplier Site.
8.
Enter the name of the Contact for this site
9.
Select Copy Attachments if you want to include the RFQ attachments on the
quotation.
10. Select the OK button to copy the RFQ. Purchasing displays a confirmation message
and opens the new quotation in the Quotations window.
To clear your entries and return to the RFQs window:
•
Select the Cancel button to clear entries and return to the RFQs window.
Related Topics
AutoCreate Documents Overview, page 6-1
Copying Purchase Orders, page 4-98
Approving Quotations
Finding Quotations for Approval
Use the Find Quotations window to enter search criteria for quotations that you want to
approve.
To enter search criteria:
1.
Navigate to the Find Quotations window by selecting Quote Analysis from the
menu. Enter optional search criteria as described in the following steps:
Supply Base Management 5-75
Important: Provide the item as part of the search criteria if you
know it. If not, you can provide the appropriate purchasing
category or description. Use the wildcard (%) to help your search
for the item. For example, to search for all items that have
Computer as part of the description, enter %Computer% in the
Description field. Note that the Description is case sensitive.
2.
Select the Operating Unit for this search.
3.
Enter the Item number. If you enter an item, you can also further restrict the search
by entering an item Revision number.
4.
Enter the item Description.
5.
Enter the Category Set. This is used to find predefined items associated with a
specific category set. If you enter a category set, you can also further restrict the
search by entering a Category.
6.
Enter the RFQ number. If you enter an RFQ number, you can also enter an RFQ
Line number.
7.
Enter the Supplier.
8.
Enter the Quotation number.
9.
Enter the Quotation Approval status: Yes or No
To clear existing search criteria:
•
Select the Clear button to clear any existing search criteria.
5-76 Oracle Purchasing User's Guide
To initiate the search:
•
Select the Find button to initiate the search and open the Analyze Quotations
window.
Related Topics
Defining Categories, Oracle Inventory User's Guide
Defining Category Sets, Oracle Inventory User's Guide
Defining Items, Oracle Inventory User's Guide
Suppliers, Oracle iSupplier Portal Implementation Guide.
Entering Quotation Headers, page 5-62
Approving Quotation Shipments, page 5-77
Approving Quotation Shipments
Use the Analyze Quotations window to review and approve general or specific
quotation information for an item or a purchasing category.
You need to approve quotation shipments if you want requestors or buyers to be able to
reference the shipments on purchase orders or requisitions. Purchasing lets you
approve quotation shipments for specific purposes so that you can control the use of
your sourcing information.
To approve quotation shipments:
1.
Navigate to the Analyze Quotations window by selecting the Find button in the
Find Quotations window. Purchasing opens the Analyze Quotations window and
displays in the Quotations tabbed region all shipment lines from active quotations.
Supply Base Management 5-77
For each shipment line, Purchasing displays the following information: Quotation
number, Supplier, Item Number, Item Description, Quotation Line, Unit Price,
Freight Terms, Payment Terms, and Discount.
In the Shipment Approvals region, Purchasing displays all existing approvals for
the current line. You can delete any of the existing approvals, or you can add
approvals for the current line as described in the following steps.
2.
Enter the approval Type. Approval types determine the types of documents on
which you can use the approved shipment. The available types are: All Orders (all
types of purchase orders and requisitions), Purchase Agreements, Requisitions,
Standard Purchase Orders.
3.
Enter an active approval reason. See: Defining Lookup Codes, page 1-54.
4.
Enter comments about your approval.
5.
Enter the name of the Approver. Purchasing defaults your name in this field.
6.
Enter the Effective date range for your approval. You can use approved quotation
shipments on your documents only if the quotation is active and if the current date
is within the effectivity dates. If you do not provide an expiration date, you can
always use the shipment for your documents while the quotation is active and
approved.
To approve entire quotations:
•
To approve/unapprove all shipments from a single quotation at one time, select the
5-78 Oracle Purchasing User's Guide
Approve Entire Quotations button to open the Approve Entire Quotations window.
See: Approving Entire Quotations, page 5-79.
Related Topics
Entering Quotation Shipment Information, page 5-70
Entering Quotation Price Break Information, page 5-72
Finding Quotations for Approval page , page 5-75
Approving Entire Quotations
Use the Approve Entire Quotations window to approve or unapprove all shipments for
a single quotation. You simply provide an approval type and reason. Purchasing
approves or unapproves all shipments on the quotation.
You need to approve quotation information if you want to let your requestors or buyers
reference it on purchase orders or requisitions. You can approve quotation information
for specific purposes so that you can control the use of your sourcing information.
Use the Quotations window to approve or unapprove individual quotation shipments.
See: Approving Quotation Shipments, page 5-77.
To approve/unapprove entire quotations:
1.
Navigate to the Approve Entire Quotation window by selecting the Approve Entire
Quotation button in the Quotations window. In this case, your approval action
applies to all shipment lines on the quotation behind the current quotation
shipment when you select the Approve Entire Quotation button. You can also
navigate to this window by selecting the Approve button in the Quotations,
Quotation Shipments, and Quotation Price Breaks windows.
Supply Base Management 5-79
2.
Select either Approve or Unapprove as the approval action. You can approve an
entire quotation as often as you want. Each time you approve an entire quotation,
Purchasing creates a new approval for each quotation shipment.
If you select Approve, you must enter an approval type and reason before you can
save your changes. You can approve a specific quotation several times for different
approval types and reasons. If you enter Unapprove, you will be unapproving all
shipment lines for the current quotation.
3.
Enter the approval Type for your quotation. Approval types determine the types of
documents on which you can use the quotation. The available types are: All Orders
(all types of purchase orders and requisitions), Purchase Agreements, Requisitions,
Standard Purchase Orders.
4.
Enter an active approval reason. You can enter this field only when you choose
Approve as the action. See: Defining Lookup Codes, page 1-54.
5.
Enter the name of the approver. Purchasing defaults your name in this field. You
can enter this field only when you choose Approve as the action.
6.
Enter the Effective date range for your approval. You can use approved quotation
information on your documents only if the quotation is active and if the current
date is within the effectivity dates. If you do not provide an expiration date, you can
always use the quotation for your documents while the quotation is active and
approved.
5-80 Oracle Purchasing User's Guide
7.
Enter comments about your approval. You can enter this field only when you
choose Approve as the action.
8.
Select OK to approve/unapprove the quotation.
To cancel your entries:
•
Select the Cancel button to cancel your action and return to the window from which
you accessed the Approve Entire Quotation window.
Related Topics
Entering Quotation Shipment Information, page 5-70
Entering Quotation Price Break Information, page 5-72
Approving Quotation Shipments, page 5-77
Defining Supplier Lists
Use the Supplier Lists window to enter and edit supplier lists. You can copy suppliers
from the supplier lists onto the RFQ supplier list when you create an RFQ.
To define supplier lists:
1.
Navigate to the Supplier Lists window from the menu.
Supply Base Management 5-81
2.
Enter the Supplier List Name of the list you want to create. Each supplier list name
must be unique.
3.
Enter a Description for your supplier list.
4.
Enter the Inactive Date for the list
5.
Enter the Supplier name you want to place on the supplier list. The list of values
displays the supplier name, number, On Hold, Taxpayer ID, and VAT number.
When you copy a supplier list onto your RFQ supplier list, Purchasing copies every
unique combination of supplier and supplier site that does not already appear on
the current RFQ supplier list.
6.
Enter the supplier Site you want to place on the supplier list. Purchasing lets you
send a request for quotation to different sites of a same supplier. You cannot enter
the same combination of supplier and supplier site twice on the same supplier list.
7.
Enter the name of the Contact at this supplier site.
Related Topics
Entering RFQ Headers, page 5-49
5-82 Oracle Purchasing User's Guide
Managing Buyer Workload
Finding Requisition Lines for Review or Assignment
Purchasing lets you suggest a buyer for each supplier-sourced requisition line you
create. (See: Entering Requisition Lines, page 3-50.) When you assign requisitions or
requisition lines to buyers, the buyers can choose the requisition lines assigned to them
and place these lines on purchase orders.
Use the Find Requisition Lines window to choose whether to review requisition
assignments or to assign/reassign requisition lines and to enter selection criteria for the
lines. Choosing the Review action takes you to the Review Buyer Workload window,
where you can review requisition assignments. You can identify requisition lines that
reference the wrong buyer or that were not assigned to a buyer. You can also use this
window to analyze buyers' workloads. (See: Reviewing Buyer Workload, page 5-85.)
Choosing the Assign action takes you to the Assign Requisition Lines window, where
you can assign or reassign requisition lines to buyers. See: Assigning Requisition Lines,
page 5-86.
To enter search criteria:
1.
Navigate to the Find Requisition Lines window by selecting Manage Buyer
Workload from the menu.
Supply Base Management 5-83
2.
Select the Operating Unit for this search.
3.
Select Assign or Review mode. Then enter desired search criteria as described in the
following steps.
4.
Enter the Requisition number.
5.
Enter the Requestor.
6.
Enter the Supplier Sourcing criterion (Sourced or Unsourced). If you leave this field
blank, Purchasing displays both sourced and unsourced requisition lines.
Requisitions have a suggested supplier either if the preparer entered a supplier
when creating the requisition, or if Purchasing sourced the requisition. See:
Automatic Sourcing, page 5-24.
7.
Enter the Buyer name.
8.
For sourced lines, enter the Supplier and Supplier Site
9.
Enter the Ship To location to locate requisition lines for a specific location. When
you set up Deliver-To Locations, you specify a Ship-To Location for each Deliver-To
Location. If you enter a Ship-To Location, Purchasing displays all requisition lines
for Deliver-To Locations that reference the Ship-To Location.
10. Enter the Rate Type.
5-84 Oracle Purchasing User's Guide
11. Enter the Currency.
12. Use the tabbed regions to further restrict the search:
13. In the Status region, you can limit the search by Late status (Yes or No), Urgent
status (Yes or No), Assigned status (Yes or No), RFQ Required status (Yes or No),
Approval status (Approved, Incomplete, In Process, Pre-Approved, Rejected,
Requires Reapproval, or Returned), or Need By date.
14. In the Line region, you can enter the following search criteria: Item number, Job
(Oracle Services Procurement), Revision number, Category, item Description, and
Line Type.
15. Select the Find button to initiate the search and open the Review Buyer Workload
or the Assign Requisition Lines window, as chosen above.
To clear existing search criteria:
•
Select the Clear button to clear any existing search criteria.
Related Topics
Reviewing Buyer Workload, page 5-85
Assigning Requisition Lines, page 5-86
Reviewing Buyer Workload
Use the Reviewing Buyer Workload window to review requisition assignments. You
can identify requisition lines that reference the wrong buyer or that were not assigned
to a buyer. You can also use this window to analyze buyers' workloads. Use the Assign
Requisition Lines window to assign or reassign requisition lines to buyers.
To review buyer workload:
1.
Navigate to the Review Buyer Workload window by selecting the Review action
and then selecting the Find button in the Find Requisitions Line window.
Supply Base Management 5-85
For each buyer, Purchasing displays information for the requisition lines that meet
the search criteria entered in the Find Requisition Lines window.
•
Assigned - The number of requisitions lines currently assigned to the buyer.
•
Urgent - The number of urgent requisition lines.
•
Late - The number of requisition lines for which the current date is later than the
Need By date less the lead time.
•
Needed - The number of requisition lines for which the Need By date is within
the Need By search criteria entered in the Find Requisition Lines window.
•
Open POs - The number of open purchase orders referencing the buyer.
At the bottom of the screen, Purchasing displays the total number of unassigned
requisition lines, and the number of these that are Urgent, Late, and Needed (as
defined above).
2.
Close the window to return to the Find Requisition Lines window.
Related Topics
Finding Requisition Lines for Review or Assignment, page 5-83
Assigning Requisition Lines, page 5-86
Assigning Requisition Lines
Use the Assign Requisition Lines folder window to assign or reassign requisition lines
to buyers.
5-86 Oracle Purchasing User's Guide
To assign requisition lines:
1.
Navigate to the Assign Requisition Lines window by selecting the Assign action
and then selecting the Find button in the Find Requisitions Line window.
For each requisition line meeting the search criteria, Purchasing displays the Buyer,
Item number, Revision number, item Description, Category, Quantity, Unit of
Measure, Currency, Unit Price, Need By Date, Requisition number, requisition Line
number, Line Type, Note to Buyer, Source Type, Supplier, Supplier Site, Requestor,
Destination Type, Ship To location, Rate Type, Urgent status, RFQ Required status,
and Encumbered status.
2.
Enter the New Buyer to whom you want to assign or reassign the requisition line.
3.
Select the requisition lines that you want to assign to the new buyer.
Related Topics
Finding Requisition Lines for Review or Assignment, page 5-83
Reviewing Buyer Workload, page 5-85
Supply Base Management 5-87
6
AutoCreate
AutoCreate Documents Overview
Purchasing provides automatic creation capabilities for documents. Buyers can quickly
create standard purchase orders, planned purchase orders, blanket releases, RFQs, and
Oracle Sourcing negotiations from any available standard (not internal) purchase
requisition lines. The purchase requisition lines can be for predefined items or one-time
items as well as outside processing items. AutoCreating documents can be as simple as
selecting requisition lines and adding a supplier-and letting Purchasing do the rest. Use
the AutoCreate Documents window to access the features of AutoCreate.
Note: For information on creating quotations directly from RFQs, see:
Copying Quotations from RFQs, page 5-74.
AutoCreate provides you with the features you need to satisfy your automatic
document creation needs. You should be able to:
•
With a minimum number of keystrokes you can create new standard or planned
purchase orders, blanket releases, RFQs, quotations, and if Oracle Sourcing is
enabled, draft buyer's auctions or sourcing RFQs.
•
Add to existing blanket releases, planned purchase orders, standard purchase
orders, RFQs, and quotations
•
Review all approved requisition lines before placing specific requisition lines on a
purchase order or RFQ
•
Review RFQ headers, lines, and shipments before creating a quotation from a
specific RFQ
•
Collect all requisition lines that meet a certain set of criteria that you establish
•
Split one requisition line into several requisition lines
AutoCreate 6-1
•
Consolidate multiple like requisition lines into single purchase order lines
•
Review or change your purchase orders, quotations, or RFQs immediately after
creation
•
Use document security to control whether buyers can add to certain document
types
•
Specify foreign currency details during autocreation.
•
Review requisition lines by currency type
Major Features
Complete Search Criteria
You have flexible criteria by which you can search for unpurchased approved purchase
requisition lines for inclusion on purchase orders and RFQs as well as unapproved
requisition lines for inclusion on RFQs. When you are creating quotations from RFQs,
you specify the RFQ number and lines from which you want to create the quotation.
See: Copying Quotations from RFQs, page 5-74.
Fast Purchase Order and RFQ Creation
All purchase requisition lines available for autocreation go into a single requisition
pool. Buyers can retrieve any of the requisition lines from the pool and use the
AutoCreate Documents window to create standard and planned purchase orders,
blanket releases and RFQs. You can place a requisition line on as many RFQs as you
want before you place it on a purchase order, after which it is no longer available in the
requisition pool.
Fast Quotation Creation
Buyers can use the Copy Documents window to create supplier quotations for each
RFQ. Buyers can choose entire RFQs or specific RFQ lines and shipments. See: Copying
Quotations from RFQs, page 5-74.
Fast Oracle Sourcing Negotiations
If Oracle Sourcing is enabled, approved requisition lines in the requisition pool can be
used to create buyer's auctions or sourcing RFQs . Buyers can use the AutoCreate
Documents window to construct these negotiations and then view them in Oracle
Sourcing.
Automatic Creation Mode
Automatic Creation Mode lets you create purchasing documents with a minimum
6-2 Oracle Purchasing User's Guide
number of keystrokes. You provide search criteria to locate the requisition lines you
want to place on a purchase order or RFQ. After reviewing the requisition lines, you
select all lines that you want. Then you select the Automatic button to create the
purchase order or RFQ. You have the option to group requisition lines in a default
manner based on the document type or you can autocreate documents that parallel the
structure of the requisition from which they were created.
Manual Creation Mode
Manual Creation Mode lets you specify which requisition lines you want to place on a
document. You decide which requisition lines you want to combine and where you
want them to appear on the document. Then you select the Manual button to create the
document.
Foreign Currency Options
When you autocreate new purchase orders, the requisition price is converted into a
purchase order price based on specified currency and rate information. You cannot
specify currency information in AutoCreate if you are adding requisition lines to an
existing document. Purchasing performs price tolerance verification for all currencies.
When you autocreate Oracle Sourcing negotiations, they are always created in
functional currency.
Related Topics
Finding Requisition Lines for AutoCreate, page 6-9
Selecting AutoCreate Criteria, page 6-12
Entering Document Information and Completing AutoCreate, page 6-15
Using the Document Builder, page 6-17
Modifying Requisition Lines, page 6-19
Copying Quotations from RFQs, page 5-74
AutoCreate Document Options
The AutoCreate Documents window has features that simplify purchase order and
blanket release creation into a few steps:
•
Enter selection criteria for your requisition lines in the Find Requisition Lines
window. See: Finding Requisition Lines for AutoCreate, page 6-9.
•
Choose whether to create a new document or add to an existing document. See:
Selecting AutoCreate Criteria, page 6-12.
•
In the AutoCreate Documents window, select the Document Type: Standard
AutoCreate 6-3
Purchase Order, Planned Purchase Order, Blanket Release, RFQ, Buyer's Auction,
or Sourcing RFQ. See: Selecting AutoCreate Criteria, page 6-12.
•
Choose the Grouping method: Default - requisition lines are combined into
individual lines based on Document Type. Requisition - the autocreated documents
parallel the structure of the requisition from which they were created. See: Selecting
AutoCreate Criteria, page 6-12.
•
Choose Automatic or Manual creation mode to place the requisition lines onto a
document. Based on the results of your search and on how you want the
autocreated document to look, you can decide whether Automatic or Manual
creation mode is more appropriate. Only Automatic mode can be used for creating
Oracle Sourcing documents. See: Selecting AutoCreate Criteria, page 6-12.
Selecting Requisition Lines
In the Find Requisition Lines window, enter search criteria to narrow the selection of
requisition lines. Purchasing chooses all requisition lines from the requisition pool that
meet your search criteria and displays them in the AutoCreate Documents window.
Requisition lines for the same item and item category are grouped together, but they are
not necessarily in order alphabetically. Within each grouping of item and item category,
requisition lines are ordered by need-by date.
Creating a Purchase Order, Release, or RFQ
In the AutoCreate Documents window, you can create a new planned purchase order,
standard purchase order, blanket release, RFQ, or Oracle Sourcing buyer's auction or
sourcing RFQ. Also, depending on your security criteria, you can add lines to an
existing document. For example, if standard purchase orders have an access level of
View Only, you cannot add lines to an existing standard purchase order unless you are
the document owner. See: Defining Document Types, page 1-66. See: Selecting
AutoCreate Criteria, page 6-12
•
To create a new document, select Create New in the Action field.
•
To add to an existing document, choose Add To and select the document number in
the Document Number field.
Using Automatic Creation Mode
Use the Automatic creation mode when any of the following conditions occur:
•
A majority of the requisition lines that your search criteria located are items you
want to place on the document
•
You want Purchasing to determine where to place the requisition lines on the
document
6-4 Oracle Purchasing User's Guide
•
You want Purchasing to combine similar requisition lines automatically onto a
single document line
•
You are creating or adding to a release
•
You are using Requisition grouping
Automatic Creation Mode lets you create documents with a minimum number of
keystrokes. If you want to place on a document all the requisition lines that you selected
from those which met your search criteria, select the Automatic button. Purchasing
creates in a new document or adds to an existing document all the requisition lines you
selected, and these lines are removed from the requisition pool if you are placing them
on a purchase order or Sourcing negotiation. Lines that you did not select and lines
placed on an RFQ remain in the requisition pool.
Note: Purchasing also copies the notes from the requisition lines and
the corresponding requisition headers, but not descriptive flexfields, to
the document lines you create.
When creating a purchase order, Purchasing combines the quantities of all requisition
lines that have the same item, item revision, line type, transaction reason, unit of
measure, and supplier item number onto a single document line. For RFQs, quantities
of all requisition lines that have the same item, revision, and line type are combined.
The lowest unit price from the combined requisition lines becomes the actual price of
the purchase order line. If the items on the requisition lines you combine have different
prices, you may want to use Manual creation mode to ensure you get the price you
want. See the discussion of Manual creation mode below.
For purchase orders and releases, Purchasing combines shipment information only if
the requisition lines have the same need-by date, ship-to location, organization, Accrual
type (period-end or on-line), and shipment type. Each purchase order distribution
corresponds to only one requisition distribution. Purchasing does not add to an existing
purchase order shipment if that shipment has been encumbered. For RFQs, Purchasing
combines shipment information only if the requisition lines have the same ship-to
location, need-by date, and unit of measure.
Note: You can autocreate releases against blanket purchase agreements
only if the requisition lines match the lines on the agreement.
If Oracle Sourcing is enabled and you are creating a negotiation, Purchasing combines
the quantities of all requisition lines based on line type, item number, item revision,
item description, unit of measure, and ship-to location onto a single line.
For new documents, Purchasing places the items on document lines in the same order
that they are displayed, and the shipments will be ordered by need-by date if all
requisition lines share a common unit price. Additions to existing documents or
document lines will be placed after any existing lines or shipments.
AutoCreate 6-5
If the profile option PO: Display the Autocreated Document is set to Yes, Purchasing
displays the Purchase Orders, Releases, RFQ window, or Sourcing Create Negotiations
Documents page, as appropriate, after creating your document lines. See: Profile
Options in Purchasing, page C-1. The AutoCreated document must be in your current
operating unit to be displayed.
Using Manual Creation Mode
Use Manual creation mode when any of the following conditions occur:
•
You want to manually choose the requisition lines to combine onto a single
document line
•
You want to specify the location of the items on the document (for example, specify
which purchase order lines the requisition lines will become)
•
You want to ensure you get the negotiated price when combining multiple
requisition lines with different prices
Manual creation mode lets you take control of the actual placement of requisition lines
on purchase order lines. You move each line into the position you want it on the
document by using the Document Builder. See: Using the Document Builder, page 6-17
.
You can combine requisition lines that have the same predefined item and lines that
have one-time items onto a single document line. If you want to combine two
requisition lines for the same item, one with an item number and one without, use
Modify on the Tools menu to add the predefined item to the requisition line for the
one-time item.
Purchasing copies only the notes from the remaining selected requisition lines (and
their corresponding headers).
Adding Lines to Existing Documents
You can add lines to existing documents only if your security criteria allow you to
modify them. However, you can always create new releases against blanket purchase
agreements - even if your security criteria do not permit you to access the document
elsewhere in the system. To add lines to an existing planned or standard purchase
order, specify the purchase order number:
If you use Automatic creation mode, Purchasing creates new lines beginning with the
next available line number or combines your requisition lines with existing document
lines.
If you use Manual creation mode, you can select any displayed line and place it onto a
line in the Document Builder region
6-6 Oracle Purchasing User's Guide
Entering Document Information
Once you have completed specification of all criteria (and used the Document Builder
for Manual creation mode), you add document information to complete the autocreate
process. See: Entering Document Information and Completing AutoCreate, page 6-15.
Additional AutoCreate Features
Modifying Requisition Lines
Use the Modify feature when you want to split an existing requisition line into multiple
requisition lines that represent the same or different items. For example, if the
requisition line quantity is so large that a single supplier cannot fill the entire order by
the need-by date, then you need to multi-source the order (that is, fill it from more than
one supplier). On the other hand, if you have a requisition line item that contains parts
that you want to order as unique items, you can explode the requisition line into several
lines.
Note: Modifying encumbered requisition lines is restricted to quantity
only.
On outside processing lines the only field you can modify is quantity.
The sum of the new lines must equal the original line quantity.
•
In the AutoCreate Documents window, select Modify on the Tools menu to display
the Modify Lines window with the current requisition line selected. See: Modifying
Requisition Lines, page 6-19.
•
Enter as many new lines as you need to represent the original requisition line.
Purchasing automatically creates new distribution lines and prorates quantities for
the new distributions from the original requisition line distributions. Purchasing
also backs out requisition supply for the original requisition line and creates new
supply for the new lines.
When you return to the AutoCreate Documents window, Purchasing displays the new
requisition lines that are now available for placement on a purchase order or RFQ.
These lines do not appear, however, if the new requisition lines do not meet your
original search criteria. The original requisition line is no longer available for purchase
order or RFQ placement, but your requestor can easily review the modification status of
a requisition line in the Requisitions window.
Returning a Requisition
Purchasing lets you return a requisition line to the requisition preparer. You might
want to return a requisition line if you are unable to obtain the requestor's price and
want the requestor to resubmit the requisition for approval at a higher price.
AutoCreate 6-7
Select Return Requisitions on the Tools menu to display the Return Requisitions
window. Enter a reason for the return and select OK to return all requisition lines on the
current requisition except any lines from the requisition already placed on a purchase
order. When you return requisition lines, they are no longer available in the requisition
pool.
Returning an encumbered requisition line reverses the funds reservation for that line
with a date based on the setting of the PO: Document GL Date profile.
Oracle iProcurement Requisitions
If you have Oracle iProcurement installed, note that, in addition to standard purchase
requisitions, iProcurement requisitions include emergency requisitions and requisitions
that use a procurement card for the purchase. You can use the PO Create Documents
workflow or AutoCreate to create documents from iProcurement requisitions.
Emergency Requisition Lines
An emergency requisition is created in Oracle iProcurement only, by requesters who
can order from a supplier directly. Emergency requisitions have a purchase order
number reserved for them in advance.
After the emergency requisition is entered in iProcurement, the PO Create Documents
workflow creates a standard purchase order from the approved requisition lines
automatically, if you use the workflow. If you don't, you can use AutoCreate.
You can view emergency requisition lines in the AutoCreate Documents folder window
by displaying the hidden field Emergency PO Number. Or enter an Emergency PO
Number in the Find Requisition Lines window.
Except for the following points, emergency requisition lines are autocreated like any
other requisition line:
•
Emergency requisition lines on a single purchase order must have the same
Emergency PO Number.
•
You can put emergency and non-emergency requisition lines on the same purchase
order, but Purchasing will give you a warning message when you do.
•
You can create only standard purchase orders from emergency requisition lines.
Emergency requisitions, and the purchase orders created from them, go through the
same approval process as other documents (unless you modify the approval workflow
to handle them differently).
Procurement Card Requisition Lines
Requisition lines that use a corporate (or procurement) credit card for the purchase are
created in iProcurement only.
6-8 Oracle Purchasing User's Guide
After a procurement card requisition is entered in iProcurement, the PO Create
Documents workflow a creates a standard purchase order or release from the approved
requisition lines automatically, if you use the workflow. If you don't, you can use
AutoCreate.
In the AutoCreate Documents folder window, you can view requisition lines that use a
corporate credit card by displaying the P-Card hidden field.
Note the following AutoCreate criteria for procurement card purchase orders and
releases:
•
You cannot combine requisition lines that use procurement card information with
other requisition lines on the same document.
•
Procurement card lines on a single document must have the same P-Card number,
supplier, and supplier site.
See: Procurement Card Purchase Orders and Releases, page 4-117.
Related Topics
Choosing Workflow Options, page 1-83
Selecting AutoCreate Criteria, page 6-12
Oracle iProcurement Implementation Manual
Finding Requisition Lines for AutoCreate
Use the Find Requisition Lines window to specify search criteria for requisition lines
that you will use to autocreate purchase orders and RFQs.
•
Create online requisitions in the Requisitions window or in Oracle iProcurement.
See: Entering Requisition Headers, page 3-48. Approve the requisitions. See: The
Document Approval Process, page 2-32.
•
Use Requisition Import to import requisitions generated by other products. See:
Requisition Import Process, page 12-27.
To enter search criteria:
1.
Navigate to the Find Requisition Lines window by selecting AutoCreate from the
menu. Then enter desired search criteria as described in the following steps.
AutoCreate 6-9
2.
Select the Operating Unit for this search.
3.
Select the Approved status: Yes or No. Only approved lines can be used when you
autocreate purchase orders. Either status can be used on RFQs. If you do not make a
selection, both approved and unapproved requisition lines will be included.
Yes - You can autocreate purchase orders, releases, and RFQs.
No - You can autocreate only RFQs.
4.
The suggested Buyer from the Enter Person window is displayed as the default. If
the PO: Allow Buyer Override in AutoCreate Find profile option is set to Yes, you
can clear the default or enter a different buyer.
5.
Enter the Requisition number.
6.
Enter the Requestor.
7.
Enter the Emergency PO Number.
If you are autocreating a purchase order from an emergency requisition, enter the
purchase order number that was reserved in advance for the requisition. An
emergency requisition is created in iProcurement only.
6-10 Oracle Purchasing User's Guide
8.
Enter the Preparer.
9.
Select the Supplier Sourcing criterion (Sourced or Unsourced).
10. Enter the Supplier List.
11. Enter the Supplier and Supplier Site.
12. Select the Document Type to indicate that you want to include requisition lines
sourced to a Blanket purchase agreement or to a Quotation.
13. Enter the Document number.
14. Check the Global checkbox if you want to include only those requisition lines
sourced to a global agreement.
15. If Oracle Sourcing is enabled, enter the Negotiation Number.
16. Check the VMI checkbox if you want to include only VMI requisition lines.
Note: VMI requisition lines cannot be used for Oracle Sourcing negotiations.
17. Enter the Minimun Amount on the requisition line to include.
18. Check the External Locations checkbox if you want to include requisition lines from
external locations.
19. Enter the Currency.
20. Enter the Ship-To location to include requisition lines with this Deliver To location.
The default is the Ship-To Location for the buyer from the Enter Person window.
21. Enter the currency Rate Type.
22. Use the tabbed regions to further restrict the search:
•
In the Line region, you can enter the following search criteria: Item number,
Revision number, Job (Oracle Services Procurement), Category, item
Description, and Supplier Item number. The default Category is the category
defined for the buyer from the Enter Person window. If the PO: Allow Category
Override in AutoCreate Find profile option is set to Yes, you can clear the
default or enter a different category.
•
In the Status region, you can limit the search by Late status (Yes or No), Urgent
status (Yes or No), Assigned status (Yes or No), RFQ Required status (Yes or
No), or the number of need by days from today (For example, enter 10 if you
want to locate all requisition lines with a need-by date within the next ten
calendar days.)
AutoCreate 6-11
23. Select the Find button to initiate the search and open the AutoCreate Documents
window. See: Selecting AutoCreate Criteria, page 6-12.
To clear existing search criteria:
•
Select the Clear button to clear any existing search criteria.
To enter requisition preferences:
•
Select Requisition Preferences on the Tools menu to open the Requisition
Preferences window. See: Entering Requisition Preferences, page 3-44.
Related Topics
Defining Buyers, page 1-19
Profile Options in Purchasing, page C-1
Enter Person, Oracle HRMS Enterprise and Workforce Management Guide
Selecting AutoCreate Criteria
The AutoCreate Documents folder window displays the requisition lines that met the
search criteria entered in the Find Requisition Lines window. Use this window to:
•
Select whether you are creating a new document or adding to an existing document
•
Select the type of document you are creating: Standard PO, Planned PO, Blanket
Release, or RFQ
•
Select the grouping method: Default or Requisition
•
For Automatic creation mode, select which of the displayed requisition lines you
will use on the autocreated document
•
Select the creation mode: Manual or Automatic
About Flexfields: AutoCreate does not copy descriptive Flexfields from the requisition.
If your company uses iProcurement, see: iProcurement Requisitions, page 6-8 for
information about autocreating iProcurement requisitions, including emergency and
procurement card (P-Card) requisitions.
To select AutoCreate criteria:
1.
Navigate to the AutoCreate Documents window by selecting the Find button in the
Find Requisition Lines window. See: Finding Requisition Lines for AutoCreate,
page 6-9.
6-12 Oracle Purchasing User's Guide
2.
In the Action field, select whether you want to Create a New document or Add To
an existing document.
Note: Only Create is supported for Oracle Sourcing documents.
3.
Select the Document Type you want to create: Standard PO, Planned PO, Blanket
Release, or RFQ. The Document Type can be only RFQ if you did not select
Approved Requisitions in the Find Requisition Lines window.
You can choose only Standard PO for emergency requisition lines.
See:iProcurement Requisitions, page 6-8.
If Oracle Sourcing is enabled you may also select Buyer's Auction or Sourcing RFQ.
See the "What are the differences between negotiation types?" topic in online help
for details.
4.
Select the Grouping for requisition lines on the document:
•
Default: Combine requisition lines for the same item, revision, line type, unit of
measure, supplier item number, and transaction reason onto one purchase
order line. Combine requisition lines for the same item, revision, supplier item
number, and line type onto one RFQ line.
You can add need-by date or ship-to organization and location to the default
grouping by using the profiles PO: Use Need-by Date for Default Autocreate
grouping or PO: Use Ship-to Organization and Location for Default Autocreate
grouping.
•
Requisition: Create document with one line for each requisition line. Used only
when you select lines on a single requisition.
Note: If Oracle Sourcing is implemented; requisition lines with the
AutoCreate 6-13
same item, revision, description, line type, UOM, and ship-to
(based on deliver-to) will be grouped into individual negotiation
document lines.
Note: If Oracle Services Procurement is implemented, only
Requisition is supported for fixed price with temp labor requisition
line types.
5.
For Automatic creation mode, use the check boxes to select the requisition lines that
you want to use on the document and then select the Automatic button. You can
also use 'Select All' or 'Deselect All' in the Edit menu.
For Manual creation mode, select the Manual button. Manual creation mode is
available only when you have chosen Default grouping for Standard and Planned
Purchase Orders, Blanket Releases, and RFQs. See: Using the Document Builder,
page 6-17.
For both creation modes, Purchasing displays the Add To Document, New
Document Number, or New Document window, depending on the action you
selected. See: Entering Document Information and Completing AutoCreate, page 615.
Note: Only automatic mode is supported when creating Oracle
Sourcing documents.
To return requisition lines:
1.
Select Return Requisitions on the Tools menu to display the Return Requisitions
window.
2.
Enter a Reason for the return.
3.
Select OK to return to the requisition pool all unpurchased lines on the current
requisition.
To modify requisition lines:
•
Select Modify on the Tools menu to open the Modify Lines window. See: Modifying
Requisition Lines, page 6-19
To view action history:
•
Select View Action History on the Tools menu to open the Action History window
and display action history for the current line. See: Viewing Action History, page
10-1.
To view blanket purchase agreements:
•
Select View Blanket POs on the Tools menu to open the Purchase Order Lines
6-14 Oracle Purchasing User's Guide
window and display all blanket purchase agreements for the item on the current
line.
To enter requisition preferences:
•
Select Requisition Preferences on the Tools menu to open the Requisition
Preferences window. See: Entering Requisition Preferences, page 3-44.
Related Topics
Customizing the Presentation of Data in a Folder, Oracle Applications User's Guide
Entering Document Information and Completing AutoCreate
Use the Add To Document, New Document Number, New Document, and Negotiation
Outcome modal windows to enter document information for documents you are
AutoCreating. Which window displays is determined by your Action choice in the
AutoCreate Documents window.
Important: If the PO: Warn RFQ Required before AutoCreate profile
option is set to Yes, and one or more of the requisition lines selected for
autocreation requires an RFQ and has not been placed on an RFQ, you
will be given a warning message and can cancel the autocreate. See:
Profile Options in Purchasing, page C-1
To enter information in the Add To Document window:
1.
The Add To Document modal window appears when you have chosen the Add To
action and selected either the Manual or the Automatic creation mode button in the
AutoCreate Documents window.
2.
Select the Document Number. For blanket releases, you must also enter the Release
Number.
You can select Cancel to close the modal window.
3.
Select OK to go to the next step.
If you are in Automatic creation mode, this completes all required steps. Purchasing
autocreates the document and displays the document entry window appropriate for
the selected criteria if the PO: Display the AutoCreated Document profile option is
set to Yes. See: Profile Options in Purchasing, page C-1.
If you are in Manual creation mode, you go to the Document Builder. See: Using the
Document Builder, page 6-17.
To enter information in the New Document Number window:
•
The New Document Number window appears when you have chosen the Create
New action and selected the Manual creation mode button in the AutoCreate
AutoCreate 6-15
Documents window. This short version of the New Document window requires
only that you enter the Document Number. Later, after you have entered
information in the Document Builder, the New Document window will appear. See:
Using the Document Builder, page 6-17.
To enter information in the New Document window:
1.
The New Document window appears after you have selected the Create button in
the Document Builder when you are creating a new document in Manual creation
mode and in all cases when you are creating a new document in Automatic creation
mode.
2.
The Global Agreement field will be defaulted if all requisition lines are sourced
from the same global agreement and a standard purchase order is being created.
Autocreate will fail if all requisition lines are not from the global agrement.
This field is greyed out if you are creating a blanket release or RFQ.
You can select a different global agreement from the Global Agreement list of
values providing all requisition lines can be sourced to that agreement.
3.
Enter the Document Number. If automatic document numbering is enabled for the
document type, this field is not enterable. See: Defining Numbering Options, page
1-40.
For RFQs, you must enter the RFQ Type, and you can enter the Supplier List Name.
For releases, you must enter the Release and the Release Date
4.
For standard and planned purchase orders, you can enter the Supplier and Supplier
Site. This is filled in for releases.
6-16 Oracle Purchasing User's Guide
5.
Enter the Currency Source:
•
Default - The currency is defaulted from the supplier site (if foreign currency),
the supplier (if foreign currency), or the functional currency.
•
First Requisition Line - The currency from the first requisition line is used.
•
Specify - If you select a Requisition and Requisition Line, the currency from that
line is autoselected; however, you can override this currency.
The Rate and Rate Date are enterable only when the Rate Type is User. A rate type
of EMU Fixed means that if either your base currency (functional currency, defined
in your ledger) or your foreign currency (transaction currency in a document entry
window) is Euro and the other is another European currency, Purchasing
automatically enters a conversion Rate Date and Rate for you that you cannot
change.
6.
Select Create to complete autocreation of the document. If the PO: Display the
AutoCreated Document profile option is set to Yes, Purchasing displays the
document entry window appropriate for the selected criteria. See: Profile Options in
Purchasing, page C-1.
To enter information in the Negotiation Outcome window:
1.
If you chose Buyer's Auction or Sourcing RFQ, the Negotiation Outcome window
opens.
2.
The Document field reflects your choice of Buyer's Auction or Sourcing RFQ from
the main Autocreate window.
3.
Select Standard Purchase Order or Blanket Purchase Agreement from the
Negotiation Outcome list of values. This will detemine the type of document that
will be created when the Sourcing negotiation is complete.
4.
Click the Create button and the Sourcing Create Negotiation Documents page is
displayed. See the Oracle Sourcing online help for details.
Using the Document Builder
Use the Document Builder region in the AutoCreate Documents window to build
documents for automatic creation in Manual creation mode.
To build documents when creating a new document:
1.
Navigate to the Document Builder by selecting the Manual button in the
AutoCreate Documents window and entering a document number in the New
Document Number window. See: Entering Document Information and Completing
AutoCreate, page 6-15.
AutoCreate 6-17
2.
In the upper region, select one requisition line for build placement. This enables the
Add to Document button.
3.
Choose the Add to Document button.
This places the selected requisition line from the upper region into the Document
Builder, highlights the upper region and positions the cursor in the next available
Line field.
You can position the cursor anywhere in a populated line in the Document Builder to
enable the Remove button. Choose the Remove button to return the line to the
upper region and deselect the line.
4.
You can select additional lines one at a time in the upper region and move them to
the Document Builder.
To create a new purchase order line, select a requisition line in the upper region and
choose the Add to Document button. Purchasing creates a new, corresponding
purchase order line.
To add to an existing purchase order line, select a requisition line in the upper
region, click in the Line field of an existing line below, and choose the Add to
Document button. Purchasing places the requisition line on the next available open
line below, but gives it the same Line number as the line you added it to. If the lines
cannot be validly combined, Purchasing gives it a different Line number. (See:
AutoCreate Document Options, page 6-3.)
You can change a Line number in the Document Builder region to any unused Line
number.
To build documents when adding to an existing document:
1.
If you are adding to an existing document, Purchasing displays all the existing
document lines in the Document Builder, with the line disabled. You cannot remove
any of these existing lines.
2.
Follow steps 2 - 4 above.
6-18 Oracle Purchasing User's Guide
3.
Select Create to complete autocreation. If the PO: Display the AutoCreated
Document profile option is set to Yes, Purchasing displays the document entry
window appropriate for the selected criteria. See: Profile Options in Purchasing,
page C-1.
To cancel the current session in the Document Builder:
•
Select the Cancel Build button to remove any lines you have added to the
Document Builder and return them to the upper region.
Related Topics
AutoCreate Documents Overview, page 6-1
Modifying Requisition Lines
Use the Modify Lines window to split an existing requisition line into multiple
requisition lines that represent the same or different items. For example, if the
requisition line quantity is so large that a single supplier cannot fill the entire order by
the need-by date, then you need to fill this order from more than one supplier. On the
other hand, if you have a requisition line item that contains parts that you want to order
as unique items, you can explode the requisition line into several lines. These new
requisition line(s) can then be modified as well.
Note: You cannot modify requisition lines with the following :
•
Items under Enterprise Asset Management control
•
Drop shipped orders
•
Oracle Services Procurement fixed price or temp labor line types
To modify requisition lines:
1.
Navigate to the Modify Lines window by selecting Modify on the Tools menu in the
AutoCreate Documents window. Purchasing displays the current requisition line in
the Lines tabbed region.
AutoCreate 6-19
2.
Enter as many new lines as you need to represent the original requisition line.
Purchasing automatically creates new distribution lines and prorates quantities for
the new distributions from the original requisition line distributions. Except that
you cannot update destination information (destination type, organization, location,
requestor, and subinventory), the entry of information in the Lines, Source Details,
Details, and Currency tabbed regions is identical to entry of this information in the
Requisitions window. See: Entering Requisition Lines, page 3-50.
Note: You can only modify the quantity on outside processing
requisition lines and the sum of the quantities on the new lines
must match the quantity of the original line. You can only modify
the quantity on encumbered requisition lines.
Note: If the profile option PO: Restrict Requisition Line Modify to
Quantity Split is set to Yes you can only modify the quantity. See:
Profile Options in Purchasing, page C-1.
Note: Changing the supplier for a line on a requisition with
supplier p-card information will remove the p-card number.
To cancel your entries:
•
Select Cancel to cancel your entries and return to the AutoCreate Documents
window.
6-20 Oracle Purchasing User's Guide
To save your work:
•
Select OK to save your work and return to the AutoCreate Documents window,
where Purchasing displays the new requisition lines that are now available for
placement on a purchase order or RFQ. These lines do not appear, however, if the
new requisition lines do not meet your original search criteria. The original
requisition line is no longer available for purchase order or RFQ placement, but
your requestor can easily review the modification status of a requisition line in the
Requisition Lines Summary window.
AutoCreate 6-21
7
Professional Buyer's Work Center
Buyer's Work Center Overview
Based on a web-based user interface, the Buyer's Work Center is a central desktop from
which buyers can efficiently perform their daily tasks—such as viewing and acting
upon requisition demand, creating and modifying orders and agreements, initiating
negotiations if Oracle Sourcing is licensed and implemented, and managing the supply
base.
The Buyer's Work Center provides you with the features you need to satisfy your
document creation needs. You can:
•
Access requisition demand in the Demand Workbench and create procurement
documents
•
Create a new standard purchase order, blanket purchase agreement, or contract
purchase agreement
•
Update an existing standard purchase order, blanket purchase agreement, or
contract purchase agreement
•
Create and maintain supplier information
•
If Oracle Sourcing is licensed and implemented, create buyer's auctions or sourcing
RFQs
•
If Oracle Services Procurement is licensed and implemented, create and maintain
purchase orders for complex work payments
•
If Oracle Procurement Contracts is licensed and implemented, author contract
terms and manage deliverables
•
Use predefined document views
Professional Buyer's Work Center 7-1
•
Create and personalize your own document views including list of columns, where
conditions, and sort sequences
Major Features
Varied Views of Demand
The Buyer's Work Center presents requisition demand in views that are easily
customized to an individual buyer's way of working. These views allow buyers to
quickly prioritize requisition demand based on a variety of factors, such as sourcing
status or commodity.
Improved Flows for Purchase Order and Agreement Creation
The Buyer's Work Center simplifies the purchase order and long-term agreement
creation and management processes. The purchase order flow streamlines data entry by
enabling buyers to enter shipment and distribution information at the line level. It also
enables you to enter shipment or distribution information without having to drill down.
A separate agreements flow is tailored specifically for the strategic buyer, who is
responsible for agreement maintenance and compliance.
Document Styles
Document styles allow procurement managers to control the look and feel of the
application for different purchasing activities. For example, purchasing managers can
create a document style for a specific commodity, such as temporary labor. This
document style optimizes field labels and presentment for that commodity, simplifying
purchase order entry.
Easier Catalog Access with iProcurement-style Search
Oracle Purchasing builds on the popularity of Oracle iProcurement's search capabilities
by offering buyers a similar search interface to easily find the items they need to
procure. In addition, an improved catalog display shows all relevant attributes in a
user-friendly list with the ability to drill-down to further details.
Procurement for Complex Services
If your organization has licensed and implemented Oracle Services Procurement, the
Buyer's Work Center supports a complete and integrated solution to procure complex
work and manage the long-term contact execution. Services procurement often involves
the definition and adherence of advanced payment terms when defining the contact.
This solution is designed for fixed price contracts with either interim progress payments
based on cost or milestones.
7-2 Oracle Purchasing User's Guide
Related Topics
Using the Demand Workbench, page 7-3
Orders in the Buyer's Work Center,
Agreements in the Buyer's Work Center,
Complex Work in the Buyer's Work Center,
Oracle Procurement Contracts: Manage Deliverables, Oracle Procurement Contracts
Administration and Implementation Manual
Supplier Management: Suppliers and Supplier Sites, Oracle iSupplier Portal
Implementation Guide
Using the Demand Workbench: Requisitions
Demand Workbench allows you to access and aggregate requisition demand existing in
Oracle Purchasing to create new procurement documents. Using the Demand
Workbench, you can:
•
Access requisition information from any organization to which you have security
access
•
Review all approved requisition lines before placing specific requisition lines on a
document.
•
Collect all requisition lines that meet a certain set of criteria that you establish
•
Create a new or add to an existing standard purchase order
•
If Oracle Sourcing is licensed and implemented, draft buyer's auctions or sourcing
RFQs
•
Review or change your purchase order immediately after creation
•
Split one requisition line into several requisition lines
•
Replace one requisition line with one or more items from the catalog or favorites list
updating source information
•
Consolidate multiple like requisition lines into single purchase order lines
•
Return requisition lines to requester
•
Maintain the relationships between the document lines and the backing requisitions
•
Buyers can review and manage their workload
Professional Buyer's Work Center 7-3
•
Personal profile for saving default document type preference.
•
Requisition grouping preferences and default document type to be created
To use the Demand Workbench:
If you are new to Oracle Purchasing we recommend that you review the documentation
referred to in the Related Topics section below.
1.
Identify requisitions which you wish to fill. See: Searching for Requisitions, .
2.
Use those requisitions to create a procurement document. See: Create Documents, .
Related Topics
Overview of Requisitions,
Reviewing Requisitions,
Requisitions: Demand Workbench
1.
Navigate to the Requisitions tab in the Buyer's Work Center. The initial page that
opens is the Demand Workbench.
7-4 Oracle Purchasing User's Guide
2.
3.
You can see all requisitions in the Oracle Purchasing requisition pool to which you
have access based on your default view and your security profile.
•
To select a different view, select from the View list. If you change views, only
the requisitions for that view are displayed. See: Using Requisition Views, .
•
If you would like to restrict the results to requisitions in a particular operating
unit you need to navigate to the search region and specify the operating unit in
the search region or create a personalized view for the operating unit.
Click Search to limit the requisitions displayed using Buyer, Requisition, Category,
Supplier, or other conditions as criteria for search results. See: Using Advanced
Search, .
You can also search for requisitions based on the content of their headers, lines, and
distributions by clicking the Summary subtab. Note that you can save your search
as a personalized view. See: Personalized Views, Oracle Applications User Guide.
4.
When the page refreshes, you see all requisitions that matched the criteria for that
view/search. For multiline requisitions, there is an entry for every requisition line
(for example, you might see two entries: requisition 12345, line 1; and requisition
12345, line 2). If you see a requisition with multiple lines, but some of the lines are
absent from the list, those lines have already been processed.
You can sort the results by clicking any column header.
You can see information for the requisition and requisition line by clicking the
Professional Buyer's Work Center 7-5
Requisition and/or Line links. If the suggested supplier has a profile defined in
Oracle iSupplier Portal, you can view the profile information by clicking the Source
link. If the source document is a blanket purchase agreement, click on the source
document link to view the source document.
5.
Once you have identified the requisitions you are interested in you can:
•
View the requisition by clicking its number.
•
Create procurement documents. See: Create Documents, .
•
Manage requisitions. See: Manage Requisitions, .
Using Requisition Views
There are predefined searches (views) that are available within the Demand
Workbench. Additionally, there are any personalized views that you have created. To
use a view, select the view from the View drop down menu and click Go.
You can use these views to search for requisitions as follows:
•
My Late Requisitions - This view displays requisitions that are past the need-by date
entered by the requester. That is, the need-by date on the requisition is prior to
today's date.
•
My Requisitions - This view displays all requisitions assigned to the buyer.
Requisitions can be assigned to a particular buyer when the requisition was created.
•
My Requisitions for Goods - This view displays requisitions for goods assigned to the
buyer.
•
My Requisitions for Services - This view displays requisitions for services assigned to
the buyer.
•
My Requisitions Requiring a RFQ - This view displays requisitions lines that require a
RFQ.
•
My Requisitions with a New Supplier - This view displays requisitions that suggest a
supplier who has not yet been defined to the system (Oracle iProcurement can
create requisitions and suggest a supplier that does not yet exist in the system).
•
My Requisitions with a Suggested Supplier - This view displays requisitions that are
sourced to a supplier.
•
My Urgent Requests - This view displays requisitions that the requester marked as
urgent.
•
Unassigned Requisitions - This view displays requisitions that have not been assigned
7-6 Oracle Purchasing User's Guide
to a sourcing buyer.
•
Personalized Views You can create your own specialized views that displays only
those requisitions in which you are interested. See: Personalized Views, Oracle
Applications User Guide.
Using Advanced Search
You can use the advanced search function to create a combination of search criteria that
helps locate the appropriate requisitions. To use the advanced search function click
Search.
Advanced search allows you to search for requisitions on a combination of values for
Buyer, Requisition, Category, and/or Supplier. You can add additional search criteria by
clicking Add. A list appears displaying all possible search criteria (for example, you
may wish to also search on Item Description).
When performing advanced searches, you can choose to require entries to match all the
search values or allow them to match any of the search values.
•
Search results where each must match all values entered - Require entries to match all the
search values you enter. For example, qualifying requisitions might be required to
have the buyer be John Smith and the ship to location be New York. In this case,
any qualifying requisitions must match both search values.
•
Search results where each may contain any value entered - Allow entries to match any of
the search values. For example, qualifying requisitions might be allowed to have
the buyer be Patricia Stock or the ship to location be San Francisco. In this case, the
qualifying requisitions can match either or both search values.
Use the Find icons to search for and select search values. When you have finished
specifying your search, click Go (clicking Clear resets the search value fields).
Create Documents
Once you have located the requisitions you wish to include in your document, use the
Demand Workbench to create a new document.
To create a new document:
1.
Scroll the Demand Workbench page to the right.
2.
Select a Document Builder document Type. This indicates the outcome you expect
from the Document Builder.
3.
Select an operating unit for your document by clicking the OU Find icon and
selecting an entry from the OU results.
Professional Buyer's Work Center 7-7
4.
Scroll the page back to the left.
5.
Select your requisition line(s):
6.
Click Add to Document Builder to place the lines in your document.
7.
To create the document, scroll right. Enter any additional information your
document type requires and click Create.
8.
•
If you wish to clear the document builder and start creating the document again
from the beginning, click Clear.
•
If you would like to make updates to the document builder parameter, enter
your changes and click Update.
The document type you selected is displayed:
•
If you selected New Order or Add to Order, the Update Standard Purchase
Order page is displayed. See: Orders in the Buyer's Work Center, .
•
If Oracle Sourcing is licensed and implemented, and you selected New Auction
or New RFQ, the Oracle Sourcing Negotiations page is displayed. Refer to the
online help for that page for detail: Create New Negotiation, Oracle Sourcing
User Help.
Note: By default the lines you selected are combined according to
the rules below. See: Grouping Requisition Lines, .
9.
Complete your document and click Create.
Manage Requisitions
Once you have located the requisitions you wish to work on, use the Demand
Workbench management tools.
To return requisition lines;
If the requisition lines should not be used in a document, you can return them to the
requester.
1.
Select your requisition line(s).
2.
Click Return Lines to remove the requisition lines from the requisition pool and
change their status in Oracle Purchasing to Returned.
3.
Enter a return Reason.
7-8 Oracle Purchasing User's Guide
4.
Click Apply.
To reassign requisition lines:
If the requisition lines should be assigned to a different buyer, you can reassign them.
1.
Select your requisition line(s)
2.
Click Reassign.
3.
Identify the new buyer.
4.
Click Apply.
To update requisition lines from the catalog:
1.
Select your requisition line.
2.
Click the Replace with items from catalog icon in the Actions column.
3.
Find the new item in the catalog and click Add to Document.
4.
Click Complete.
To update requisition lines from your catalog favorites:
1.
Select your requisition line.
2.
Click the Replace with items from favorites icon in the Actions column.
3.
Find the new item in the catalog and click Add to Document.
4.
Click Complete.
To split requisition lines:
1.
Select your requisition line.
2.
Click the Split icon in the Actions column.
3.
Enter the new quantities in the Qty column for each requisition line.
4.
Click Save Split.
Grouping Requisition Lines
If you select multiple requisitions or a requisition with multiple lines, Demand
Professional Buyer's Work Center 7-9
Workbench consolidates multiple requisition lines with similar characteristics into a
single sourcing document line. If you use default grouping multiple requisition lines are
grouped together if they have the same values for the following characteristics:
•
Item category
•
Item number
•
Item revision
•
Item description
•
UOM
•
Ship-To address
•
Line type
You can add need-by date or ship-to organization and location to the default grouping
by using the profiles PO: Use Need-by Date for Default Autocreate grouping or PO: Use
Ship-to Organization and Location for Default Autocreate grouping.
If you use requisition grouping the document builder creates a document with one line
for each requisition line.
For more details about requisition grouping see: Using Automatic Creation Mode,
Purchase Orders
The Buyer's Work Center Orders user interface optimizes the standard purchase order
creation and management processes. Buyers can edit and view delivery schedules and
account distributions across all order lines, thus eliminating the need to drilldown on
individual lines. For simple purchase orders that do not require staged delivery
schedules or multiple account distributions, buyers can quickly enter all necessary
information for the order in the header and line sections, without having to navigate to
the schedules and distributions sections.
To use the Orders tab:
If you are new to Oracle Purchasing we recommend that you review the documentation
referred to in the Related Topics section below.
1.
Identify those existing purchase orders you wish to view, modify, duplicate, or
delete. See: Finding Standard Purchase Orders, .
2.
Identify the style of order which you wish to create and then create it. See: Creating
Standard Purchase Orders, .
7-10 Oracle Purchasing User's Guide
Related Topics
Overview of Purchase Orders,
Purchase Order Defaulting Rules,
Finding Standard Purchase Orders
1.
Navigate to the Orders tab in the Buyer's Work Center. This opens the Summary
version of the Orders page. You can change the emphasis of the summary view by
clicking Headers, Lines, Schedules, Pay Items, and Distributions.
2.
You can see all standard purchase orders to which you have access based on your
default view and your security profile.
View - To select a different view, select the view from the menu. If you change the
view, only the orders for that view are displayed. See: Using Order Views, .
Export - Exports the entire results of the search results. The results can be saved or
viewed in a comma delimited file format.
3.
4.
Once you have found an order that you wish to work on:
•
Take Action on a Standard Purchase Order - Select the order, select an action from
the Select Order list such as Update, and click Go.
•
View Standard Purchase Order - Click the order number and select Lines,
Schedules, or Distributions using the tabs on the Standard Purchase Order
page. View additional information about the order from the Action list and
clicking Go. Click Update to switch to the Update Standard Purchase Order
page.
If you want to create a new standard purchase order, select the style from the
Create list and click Go. See: Entering Standard Purchase Orders, .
Professional Buyer's Work Center 7-11
Using Order Views
Views are predefined searches for orders. To use a view, select the view from the View
list and click Go.
You can use the following views to search for orders:
•
My In Process Orders - This view displays orders that have a status of In Process.
•
My Incomplete Orders - This view displays orders that have a status of Incomplete.
•
My Open Orders - This view displays all open orders assigned to the buyer.
•
My Orders with Pending Change Requests - This view displays orders that have
change requests associated with them..
•
My Orders with Rejected Acknowledgments - This view displays orders that the
supplier has rejected.
•
Personalized Views You can create your own specialized views that displays only
those orders in which you are interested. See: Creating Personalized Views, Oracle
Applications User Guide.
Entering Purchase Order Information
1.
From the Orders page of the Buyer's Work Center navigate to the Create Standard
Purchase Order page by selecting a style from the Create list and then clicking Go.
If you are modifying an existing order it is displayed on the Update Standard
Purchase Order page. You can change the emphasis of the page by clicking
Headers, Lines, Schedules, and Distributions.
Note: Field names discussed below are assuming the Standard
Purchase Order style was selected.
7-12 Oracle Purchasing User's Guide
2.
Select the Order Header tab to enter general information about the entire order:
•
Enter order header information: Operating Unit, Supplier, Supplier Site,
Supplier Contact, Communication Method, Currency, Buyer, Description, and
Confirming Order.
For details see: Entering Purchase Order Headers,
•
Enter order terms information: Bill-To Location, Payment Terms, Pay On
Receipt, Required Acknowledgment, Acknowledge By, Default Ship-To, Ship
Via, Freight Terms, FOB, and Transportation Arranger.
For details see: Entering Purchase Order Details Information, page 4-61
•
Enter order attachments are entered by clicking Add Attachments.
See: Attaching Notes to Purchasing Documents, page 1-32
•
Optionally enter a Note to Supplier or a Note to Receiver.
For details see: Entering Purchase Order Details Information, page 4-61
•
3.
For details on what you can do to your order, see: Using Order Actions, .
Select the Orders Lines tab to enter details about the items on this order:
•
To add lines from the catalog, select From Catalog in the Add Lines list and
click Go. To add lines from your favorites list, select From Favorites in the Add
Lines list and click Go.
Professional Buyer's Work Center 7-13
For details see the online help for the selection.
•
Enter line details: Type, Item/Job, Description, Category, Quantity (Qty), Unit of
Measure (Unit), Price, and Need-By/Start date. To expand the line to full page
view click the Actions Update icon.
If this is a complex work order, see: Entering Complex Work Purchase Order
Lines, .
For details see: Entering Purchase Order Lines, page 4-46
4.
•
In the Action column for each line you can click icons to Update, Split, or
Delete.
•
For details on what you can do to your lines, see: Using Order Actions, .
Select the Orders Schedules tab to enter details about delivery of items on this
order:
•
Enter schedule details: Schedule, Locations, Organization (Org), Quantity (Qty),
and Need-By date. To expand the schedule to full page view click the Actions
Update icon.
For details see: Entering Purchase Order Shipments, page 4-67
•
In the Action column for each schedule line you can click icons to Update, Split,
or Delete.
•
For details on what you can do to your schedule, see: Using Order Actions, .
5.
If this is a complex work order, select the Pay Items tab to enter details about the
progress payments for this order. See: Entering Complex Work Purchase Order
Pay Items, .
6.
Select the Distributions tab to enter details about the charge accounts for this
order:
•
Enter distribution details: Distribution Type, Deliver-To, Quantity (Qty), and
PO Charge Account. To expand the distribution to full page view click the
Actions Update icon.
For details see: Entering Purchase Order Distributions, page 4-75
•
For details on what you can do to your order, see: Using Order Actions, .
Using Order Actions
•
You can take the standard actions of Save, Approval Options, and Submit by
7-14 Oracle Purchasing User's Guide
clicking one at the top or bottom of the page. .
Note: The Cancel button is used to return to the Summary page.
•
From the Actions list at the top you can select (depending on the status of your
order and which page you are viewing):
•
Cancel
•
Delete
•
Manage Tax
•
Place on Hold
•
Duplicate with Attachments
•
Duplicate without Attachments
•
Communicate
•
If the order is for complex services, you can select Create Work Confirmation
•
Check/Manage Funds
•
View Acknowledgments
•
View Acquisition Cost
•
View Action History
•
View Change History
•
View Invoices
•
If the PDF option is enabled, you can select View PDF to see the formatted
purchase order as it will be communicated to the supplier.
•
View Payments
•
View Receipts
•
View Requisitions
•
View Revision History
•
If the order is for complex services, you can select View Work Confirmation
Professional Buyer's Work Center 7-15
•
If Oracle Procurement is enabled, you can select the following options:
•
Add Contract Terms
•
Update Contract Terms
•
Manage Deliverables
•
Manage Contract Documents
•
View Contract Terms
Click Go after your selection. For details regarding these actions see: Purchase
Order Tools Menu Options, and Purchase Order Inquire Menu Options, .
Entering Complex Work Purchase Order Pay Items
If Oracle Services Procurement has been licensed and implemented, you can take
advantage of additional features for procuring complex services. Complex work
procurement always creates a default pay item for the purchase order line. The type of
Pay Item depends on the Pay Item types enabled on the document style and also the
purchase order line type.
•
For Lines with a value basis of Quantity, only Milestone Pay Items are possible, so
you cannot create Rate or Lumpsum Pay Items for a Goods Line.
•
For Fixed Price Services and Fixed Price Temp Labor Lines, you can create all three
types of Pay Items: Rate, Lumpsum and Milestone. In this case, if all three types are
enabled on the Document Style, a Lumpsum Pay Item is created by default.
To enter pay items:
•
Enter pay item details: Pay Item, Price, and Need-By Date.
•
In the Action column for each pay item line you can click icons to Update, Split, or
Delete.
See also: Entering Purchase Order Information, .
Entering Complex Work Purchase Order Lines
If Oracle Services Procurement has been licensed and implemented, you can take
advantage of additional features for procuring complex services. Complex work
procurement requires an integration between several Oracle Applications. The role that
Oracle Purchasing plays is primarily in the authoring and monitoring portion of the
Complex Work flow. In addition, the purchase order styles that dictate which of the
complex work procurement attributes are available are created in Oracle Purchasing.
See: Defining Document Styles,
7-16 Oracle Purchasing User's Guide
When you author a complex work procurement order there is some additional
information required at the line level.
Tip: Remember to click the Update icon on the lines summary page to
get the full page view of the line.
1.
Line type must be Fixed Price Services.
2.
In the Financing region, enter Advance Amount, Recoupment Rate, and Progress
Payment % (per cent)>
3.
In the Retainage region, enter Maximum Retainage Amount and Retainage Rate.
4.
Add any drawings or specification documents using Add Attachments.
Related Topics
Entering Purchase Order Headers,
Entering Purchase Order Lines, page 4-46
Entering Purchase Order Shipments, page 4-67
Entering Purchase Order Distributions, page 4-75
Entering Purchase Order Line Complex Services,
Overview of Purchase Orders,
Complex Work in the Procurement Suite, Oracle Services User Guide
Purchase Agreements
The Professional Buyer's Work Center provides a dedicated user interface for creating
and maintaining agreements, targeting the strategic buyer responsible for agreement
maintenance and compliance.
To use the Agreements tab:
If you are new to Oracle Purchasing we recommend that you review the documentation
referred to in the Related Topics section below.
1.
Identify those existing purchase agreements you wish to view, modify, duplicate, or
delete. See: Finding Agreements, .
2.
Identify the style of order which you wish to create and then create it. See: Creating
Agreements, .
Professional Buyer's Work Center 7-17
Related Topics
Overview of Purchase Orders,
Purchase Order Defaulting Rules,
Finding Agreements
1.
Navigate to the Agreements tab in the Buyer's Work Center. This opens the
Summary version of the Agreements page. You can change the emphasis of the
summary view by clicking Headers or Lines.
2.
You can see all agreements to which you have access based on your default view
and your security profile.
3.
4.
•
View - To select a different view, select the view from the menu. If you change
the view, only the agreements for that view are displayed. See: Using
Agreement Views, .
•
Export - Exports the entire results of the search results. The results can be saved
or viewed in a comma delimited file format.
Once you have found an agreement that you wish to work on:
•
View Agreement - Click the Agreement number and select Lines using the tabs
on the Agreement page. View additional information about the order from the
Action list and clicking Go. Click Update to switch to the Update
Agreementpage.
•
Take Action on an Agreement - Select the agreement, select an action from the
Select Agreement list such as Update, and click Go.
To create a new agreement select the style from the Create list and click Go. See:
Entering Agreements, .
7-18 Oracle Purchasing User's Guide
Using Agreement Views
Views are predefined searches for agreements. To use a view, select the view from the
View list and click Go.
You can use the following views to search for agreements:
•
My Agreements - This view displays all open agreements assigned to the buyer.
•
My Agreements with Pending Change Requests - This view displays agreements that
have change requests associated with them.
•
My Agreements with Rejected Acknowledgments - This view displays agreements that
the supplier has rejected.
•
My Expiring Agreements - This view displays agreements that are going to expire,
based on notification controls.
•
My Incomplete Agreements - This view displays agreements that have a status of
Incomplete.
•
Personalized Views You can create your own specialized views that displays only
those agreements in which you are interested. See: Creating Personalized Views,
Oracle Applications User Guide.
Create And Update Agreements
The Agreements page of the Buyer's Work Center supports two basic Oracle Purchasing
document types: the global blanket purchase agreement and the global contract
purchase agreement. See: Purchase Order Types,
Entering Purchase Agreement Information
1.
From the Agreements page of the Buyer's Work Center navigate to the Create
Blanket Purchase Agreements page or the Create Contract Purchase Agreements
page by selecting a style from the Create list and then clicking Go.
If you need to modify an existing agreement click its Agreement number and it is
displayed on the Blanket Purchase Agreements page or the Contract Purchase
Agreements page. Click Update to make your changes. You can change the
emphasis of page by clicking Headers, Lines, or Controls.
Professional Buyer's Work Center 7-19
2.
Select the Agreement Header tab to enter general information about the entire
agreement:
•
Enter agreement header information: Operating Unit, Supplier, Supplier Site,
Supplier Contact, Communication Method, Buyer, Amount Agreed, Currency,
Effective From and To dates, and Description.
For details see: Entering Purchase Order Headers,
•
Enter agreement terms information: Bill-To Location, Payment Terms, Pay On
Receipt, Required Acknowledgment, Acknowledge By, Amount Limit, Default
Ship-To, Ship Via, Freight Terms, FOB, and Transportation Arranger.
For details see: Entering Purchase Order Details Information, page 4-61
•
Enter agreement attachments are entered by clicking Add Attachments.
See: Attaching Notes to Purchasing Documents, page 1-32
•
Optionally enter a Note to Supplier or a Note to Receiver.
For details see: Entering Purchase Order Details Information, page 4-61
•
3.
For details on what you can do to your agreement, see: Using Agreement
Actions, .
Select the Agreements Lines tab to enter details about the items on this
7-20 Oracle Purchasing User's Guide
agreement:
Note: There are no lines on a contract purchase agreement.
•
To add lines from the catalog, select From Catalog in the Add Lines list and
click Go. To add lines from your favorites list, select From Favorites in the Add
Lines list and click Go.
For details see the online help for the selection.
•
Enter line details: Type, Item/Job, Description, Category, Unit of Measure
(Unit), Price, and Expiration date. To expand the line to full page view click the
Actions Update icon.
For details see: Entering Purchase Agreement Information, page 4-55
4.
•
In the Action column for each line you can click icons to Update, Split, or
Delete.
•
For details on what you can do to your agreement, see: Using Agreement
Actions, .
Select the Agreements Control tab to enter control details for this agreement:
•
Define operating unit access by selecting a Purchasing OU and Purchasing Site
for a Requesting OU.
For details see: Enable Organizations For A Global Agreement, page 4-56
•
Enable Automatic Processes for your blanket purchase agreement by selecting:
•
Enable Automatic Sourcing
•
Update Sourcing Rules and Assignments
See: Enter Additional Options,
•
Enable Retroactive Pricing for your blanket purchase agreement by selecting:
•
Apply Price Updates to Existing POs
•
Communicate Price Updates
See: Enter Additional Options,
•
Enter Notification Controls for this agreement by entering Condition, Warning
Delay, Percent, Amount, Effective From date, and Effective To date.
For details see: Entering Purchase Order Notification Controls, page 4-80
Professional Buyer's Work Center 7-21
•
For details on what you can do to your agreement, see: Using Actions, .
Using Agreement Actions
•
You can take the standard actions of Cancel, Save, Approval Options, and Submit
by clicking one at the top or bottom of the page. .
Note: The Cancel button is used to return to the Summary page.
•
From the Actions list at the top you can select (depending on the status of your
agreement and the page you are viewing):
•
Delete
•
Enable Catalog Administrator Authoring
•
Enable Supplier Authoring
•
Place on Hold
•
Duplicate with Attachments
•
Duplicate without Attachments
•
If the PDF option is enabled, you can select View PDF to see the formatted
purchase order as it will be communicated to the supplier.
•
If Oracle Procurement Contracts is implemented you can select Add Contract
Terms.
Click Go after your selection. For details regarding these actions see: Purchase
Order Tools Menu Options, and Purchase Order Inquire Menu Options, .
Related Topics
Entering Purchase Order Headers,
Entering Purchase Order Details Information, page 4-61
Entering Purchase Agreement Information, page 4-55
Enable Organizations For A Global Agreement, page 4-56
Overview of Purchase Orders,
7-22 Oracle Purchasing User's Guide
8
Communication With Suppliers
Overview of Supplier Communication
Purchase Order Communication to Suppliers
In a business climate that is more global and electronic everyday, enterprises are being
asked to produce procurement documents in a variety of different formats. Oracle
Purchasing supports the following methods of communicating purchase orders:
•
Print
•
Facsimile (fax)
•
Electronic mail (e-mail)
•
Extensible Markup Language (XML)
•
Electronic Data Interchange (EDI)
•
Online Viewing
You can print, reprint, e-mail, or fax purchase orders as often as you want using the
Submit Requests window (See: Submitting a Request, Oracle Applications System
Administrator's Guide). You can choose from the following options:
•
Print all new and changed purchase orders
•
Print all changed purchase orders
•
Print all new purchase orders
•
Print a particular purchase order or range of purchase orders
•
Print a test purchase order
Communication With Suppliers 8-1
•
Landscape or portrait format
The communication method normally used by Oracle Purchasing is determined by the
selection of Notification Method in the Supplier Site window and your application
configuration. See: Setup Purchase Order Communication to Suppliers, page 1-74
Important: Your administrator must enable PDF output (described
below) to activate the Communicate selection in the Tools menu of the
Purchase Order Summary window.
Print Purchase Orders
The traditional way to communicate purchase orders to your supplier is by printing
them and sending a copy to the supplier in the mail. Your purchase order can be
printed using text or PDF (Adobe Portable Document Format) formatting. If you use the
text format, you can print at the time you approve the purchase order or when you
submit the Printed Purchase Order and Printed Change Order reports. If you choose the
PDF format, you can create the PDF at the time you approve the purchase order, from
the Purchase Order Summary window, or the PO Output for Communication process.
See: Purchase orders in PDF, page 8-3.
See: Printed Purchase Order Overview, page 8-3.
You can send facsimiles of purchase orders using text or PDF formatting. If you choose
text format you can fax at the time you approve the purchase order or when you submit
the Printed Purchase Order and Printed Change Order reports. If you choose PDF
format, you can fax at the time you approve the purchase order, or from the Purchase
Order Summary window. See: Purchase orders in PDF, page 8-3.
Note: This communication method requires that your system
administrator configure your Oracle Application to support fax
transmission.
E-mail Purchase Orders
You can send e-mail copies of purchase orders using HTML or PDF formatting. If you
are using HTML format, you can e-mail at the time you approve the purchase order. For
the PDF format, you can e-mail at the time you approve the purchase order or from the
Purchase Order Summary window. Note that the PDF format purchase orders are sent
as attached files. See: Purchase orders in PDF, page 8-3.
Note: This communication method requires that your system
administrator configure your Oracle Application Notification Mailer
workflow to support e-mail transmission.
8-2 Oracle Purchasing User's Guide
XML Purchase Orders
Purchase orders and change orders can be communicated to the supplier using XML if
the Oracle XML Gateway is implemented. Your XML documents are sent at the time
you approve the purchase order.
EDI Purchase Orders
Purchase orders and change orders can be communicated to the supplier using EDI if
the Oracle e-Commerce Gateway is implemented. Your EDI documents are sent at the
time you approve the purchase order.
Online Viewing
Purchase orders and change orders can be viewed by suppliers through the Oracle
iSupplier Portal application. This application enables suppliers to view and take action
on their purchase orders through a secure, Internet-based portal.
Purchase Orders in PDF
Purchase orders can be viewed, e-mailed, and faxed to suppliers in Adobe Portable
Document Format (PDF). A style sheet template is specified to control the appearance
and layout of the formatted PDF file. If you have implemented Oracle Procurement
Contracts, there is a separate style sheet template which controls the appearance and
layout of the contract terms as part of the purchase order PDF file. These templates are
managed using Oracle XML Publisher. See the Oracle XML Publisher User's Guide.
Purchase orders in PDF can be viewed online by buyers from the Enter Purchase Order
window, the Purchase Order Summary window, and the PO Output for
Communication report.
Note: This feature requires configuration of your Oracle Applications
by your system administrator.
Printed Purchase Orders Overview
Oracle Purchasing formats your purchase orders to be communicated to suppliers on a
standard purchase order form. This section explains how Oracle Purchasing formats the
purchase order information. You can use the standard format or customize the report to
meet your needs.
Note: Some of the titles described in this section (related to specific
functionality) may vary slightly depending on whether your
organization is using text or PDF report format.
Communication With Suppliers 8-3
Multilingual Support
If you use Multilingual Support (MLS), you can print most of the fields on the following
reports in another language:
•
Printed Purchase Order Report (Landscape)
•
Printed Purchase Order Report (Portrait)
•
Printed RFQ Report (Landscape)
•
Printed RFQ Report (Portrait)
•
Printed Change Orders Report (Landscape)
•
Printed Change Orders Report (Portrait)
•
PO Output for Communication Report
See: Submitting a Request, Oracle Applications User's Guide.
Note: You can print item descriptions in other languages only for
inventory items for which translations have been entered. If you change
the item description on the document, it does not print in the translated
language.
Major Features
Portrait and Landscape Formats
Purchasing lets you print your purchase orders in portrait or landscape format. Use the
Submit Requests window to choose either the Printed Purchase Order Report
(Landscape) or the Printed Purchase Order Report (Portrait). The explanations that
follow describe both portrait and landscape characteristics. See: Submitting a Request,
Oracle Applications User's Guide.
Printed Change Orders Report
In addition to the Printed Purchase Order Report, you can also use the Submit Requests
window to choose the Printed Change Orders Report in portrait or landscape formats.
This prints only the changes between revisions of purchase orders, but is otherwise
identical to the Printed Purchase Order Report. When you have purchase orders with
many lines, you can print only pertinent change information to send to the supplier. If a
modification to the purchase order shipment causes the purchase order revision to
change, the Printed Change Orders Report prints the revised shipment, line, and
header. If the modification is to the line, the report prints the revised line and header. If
only the header is modified, the report prints only the header. Note that the report does
8-4 Oracle Purchasing User's Guide
not include purchase orders for which only the distribution is modified.
Brief Notes
Purchasing prints the brief notes to supplier that you attach to the purchase order
header or line. These notes can contain up to 240 characters. Purchasing automatically
wraps the notes after 103 characters per line for landscape orientation and 75 for
portrait. These notes may wrap in the middle of a word to ensure the correct line count
for each page.
Attachments
Purchasing prints all text attachments with a usage of Supplier on the purchase order.
These notes contain up to 64K characters per note. You can attach as many notes as you
want to the purchase order headers and lines. Purchasing also prints text attachments to
the items. Purchasing prints 78 characters per line and automatically wraps to the next
line. The note appears on the purchase order exactly as you enter it. See: Attaching
Notes to Purchasing Documents, page 1-32.
The PDF version of the purchase order displays the non-text attachment filenames at
the appropriate level. The header level not-text attachments are displayed in the Notes
section as "Attachments." The line and shipment or price break level non-text
attachments appear at the lines or shipments or price breaks they reference. Besides the
non-text files, hyperlinks of HTML attachments and web pages are included in the PDF
in this way. Clicking on these hyperlinks would cause the HTML attachments to open
in a new window.
Note: When communicating PDF purchase orders using e-mail, all File
type attachments are zipped into a single zip file named
"Attachments.zip."
Purchase Agreements
Purchasing prints an appropriate document title on all your purchase agreements and
releases.
If you provide effective dates on your contract or blanket purchase agreements,
Purchasing also prints titles appropriate for those effective dates and your choice of
formatting. See: Agreement/Release Components, page 8-15.
Cancelled Orders
Purchasing automatically indicates whether you cancelled any part of your purchase
order. If you cancel the purchase order header, Purchasing prints the following
cancellation message at the top of the purchase order and does not print cancellation
messages for lines or shipments:
•
This purchase order CANCELLED on: [date]
If you cancel a purchase order release, Purchasing prints the following cancellation
Communication With Suppliers 8-5
message:
•
This release CANCELLED on: [date]
If you cancel a purchase order line without cancelling the corresponding header,
Purchasing prints the following cancellation messages:
•
This line CANCELLED on: [date]
•
Original quantity ordered: [quantity]
•
Quantity CANCELLED: [quantity]
If you cancel a purchase order shipment without cancelling the corresponding purchase
order line, Purchasing prints the following messages. Purchasing also prints these
messages for each shipment if you cancel the corresponding purchase order line.
•
This shipment CANCELLED on: [date]
•
Original shipment quantity: [quantity]
•
Quantity CANCELLED: [quantity]
See: Controlling Documents, page 2-57.
Confirming Orders
You designate whether a purchase order is a confirming order when you enter the
purchase order header information. If you select Confirming Order in the Purchase
Order Details window, Purchasing automatically prints CONFIRMATION -- DO NOT
DUPLICATE. See: Entering Purchase Order Details Information, page 4-61.
Foreign Currency
For the text report format, when you designate that a purchase order is in a different
currency than your base currency Purchasing prints All prices and amounts on this
order are expressed in [foreign currency]. The PDF report format always indicates the
currency. You designate the currency when you create the purchase order.
Acceptances
If you require an acceptance from your supplier, Purchasing prints the following
message: Please formally accept this order by: [acceptance date]. You designate
whether you require an acceptance when you create the purchase order. When you
indicate that you require an acceptance, you also provide an acceptance date by which
you expect your supplier to respond. See: Entering and Viewing Purchase Order
Acceptances, page 4-81.
Purchase Agreement References
Purchasing prints the following message for each standard purchase order line that
8-6 Oracle Purchasing User's Guide
references an agreement number: This PO line references contract PO# [agreement
number]. You associate a purchase agreement number with a standard purchase order
line when you create the purchase order.
Quotation References
Purchasing prints the following message for each purchase order line that references a
quotation number: This PO line references Quotation #: [supplier quotation number]
Line: [line number] Your Quotation #: [purchase order quotation number]. You
associate a quotation number with a purchase order line when you create the purchase
order.
Automatic Table Update
Purchasing automatically updates the item history table when you print your purchase
order for each revision. Purchasing records the item, supplier, quantity, unit of
measure, price, and purchase order number. This information is available when you
view last price and history information. See: Overview of the Supplier Item Catalog,
page 5-5.
Printed Purchase Order Diagram Descriptions
The following table includes both portrait and landscape explanations for the text and
PDF formats.
Tip: N/A indicates not available. P/L indicates differences between
portrait and landscape versions, see the description for details.
Field
Description
Text
PO
PD
F
PO
PO Number (PDF:
Order)
Purchasing prints the purchase order number. If the order
is a release, Purchasing prints a dash ('-') after the
purchase order number followed by the release number.
12
12
Revision
Purchasing prints the purchase order revision.
4
4
Page
Purchasing prints the page number.
3
3
Communication With Suppliers 8-7
Field
Description
Text
PO
PD
F
PO
Ship To
The ship to information contains up to 3 lines of address.
After the address, Purchasing prints the city, state (or
province), and zip code on line 4. On line 5, Purchasing
prints the country. Purchasing prints the ship to location
even if it is the same as the bill to location. (portrait - 28
characters for line 1 through 4 lines, 25 characters for line
5; landscape - 30 characters for lines 1 through 4, 25
characters for line 5)
P/L
P/L
Bill To
The bill to information contains up to 3 lines of address.
After the address, Purchasing prints the city, state (or
province), and zip code on line 4. On the line 5,
Purchasing prints the country. (portrait - 28 characters for
line 1 through 4 lines, 25 characters for line 5; landscape 30 characters for lines 1 through 5)
P/L
P/L
Supplier
Purchasing prints the supplier name on line 1. Purchasing
then prints up to 3 lines of address. On line 5, Purchasing
prints the city, state (or province), and zip code.
Purchasing prints the country on line 6. (portrait - 40
characters for line 1, 35 characters for lines 2 through 4, 42
characters for line 5; landscape - 42 characters for line 1, 35
characters for lines 2 through 6)
P/L
P/L
Customer Account
Purchasing prints the number your supplier associates
with your company. You provide this number in the
Supplier window. (portrait - 13 characters, landscape - 9
characters) See: Suppliers, Oracle iSupplier Portal
Implementation Guide.
P/L
P/L
Supplier No.
Purchasing prints the number for your supplier. (portrait 13 characters; landscape - 9 characters)
P/L
P/L
Date Of Order/ Buyer
Purchasing prints the original buyer and creation date.
(portrait - first initial of first name and 10 characters of last
name; landscape - first initial of first name and 11
characters of last name)
P/L
N/
A
Order Date
Purchasing prints the creation date.
N/A
10
Created By
Purchasing prints the original buyer's name.
N/A
8-8 Oracle Purchasing User's Guide
Field
Description
Text
PO
PD
F
PO
Revised Date/ Buyer
If you revise the purchase order and do not change the
name of the original buyer, Purchasing prints the original
buyer's name and the date of the revision. If you change
the buyer's name, the new name is printed. If you have
not yet revised the purchase order, Purchasing leaves this
field blank. (portrait - first initial of first name and 10
characters of last name; landscape - first initial of first
name and 11 characters of last name)
P/L
N/
A
Revision Date
If you revise the purchase order, Purchasing prints the
revision date.
N/A
10
Revised By
If you revise the purchase order, the buyer's name is
printed.
N/A
Payment Terms
Purchasing prints the payment terms for your purchase
order. (portrait - 27 characters; landscape - 21 characters)
P/L
P/L
Ship Via
Purchasing prints the mode of transportation for the items
on the purchase order. (portrait - 22 characters; landscape
22 characters)
P/L
P/L
FOB (PDF: F.O.B.)
Purchasing prints the free on board terms. (portrait - 28
characters; landscape 20 characters)
P/L
P/L
Freight Terms
Purchasing prints the freight terms code that explains the
condition of the freight charges and the party responsible
for the freight. (portrait - 27 characters; landscape - 21
characters)
P/L
P/L
Requestor/ Deliver
To (PDF: Deliver
To/Requester)
If the standard purchase order is for one requestor only,
Purchasing prints the full first and last name of the
requestor. For multiple requestors, Purchasing prints
Many. (portrait - 22 characters; landscape - 52 characters)
P/L
P/L
Confirm/ Telephone
(PDF: Confirm
To/Telephone)
Purchasing prints the contact name and contact phone
number. (portrait - first initial of first name, up to 10
characters of last name, 15 characters for the phone
number; landscape - 37 characters for first and last name
combined, 16 characters for the phone number)
P/L
P/L
Communication With Suppliers 8-9
Field
Description
Text
PO
Timezone Note
Purchasing prints a note identifying the timezone that
applies to this purchase order.
N/A
Transportation
Arranged (PDF:
Transportation)
If Oracle Transportation is implemented, Purchasing
prints the party responsible for transportation.
N/A
PD
F
PO
Standard/Planned Purchase Order Components
Purchasing prints the main text underneath the Item title on the purchase order.
Purchasing first prints header information followed by line, shipment, and distribution
information.
Note: Planned purchase orders are not supported in PDF format.
For single shipments with the same ship-to address as the header, Purchasing pulls all
information up to the line level and blanks out the shipment level entirely, regardless of
other factors. For multiple shipments or a single shipment with a different ship-to
address from the header, Purchasing prints information at both shipment and line
levels.
In the PDF format, if all the shipments have the same ship-to address, but the address is
different from the header, Purchasing suppresses the address at the shipment level and
instead prints the ship-to address in the header.
Standard and Planned Purchase Order Header
Standard and planned purchase orders print the following header information if it
pertains to the purchase order:
•
Brief Supplier Note
•
Long Supplier Note
•
This purchase order CANCELLED on: [date].
•
CONFIRMATION -- DO NOT DUPLICATE
•
Foreign Currency Information
8-10 Oracle Purchasing User's Guide
Standard and Planned Purchase Order Lines
After printing the header information, Purchasing prints the following line information:
Tip: N/A indicates not available. P/L indicates differences between
portrait and landscape versions, see the description for details.
Field
Description
Tex
t
PO
PD
F
PO
Line
Purchasing prints the purchase order line number.
Item Number/
Description (PDF:
Part
Number/Description)
Purchasing prints your item number first. If you have an
item revision number, Purchasing prints [revision
number]. If you specify a supplier item number,
Purchasing prints (Your #: [supplier item number]) for text
or (Supplier Item: [Supplier item number]) for PDF on the
next line. Purchasing then prints the item description on
the following line. (portrait - wraps after 23 characters per
line, landscape - wraps after 45 characters per line) (For
PDF Purchasing also includes the Supplier Configuration
ID: [Config ID])
P/L
P/L
Delivery Date
Purchasing prints dates only for single shipments. If you
provided a promised date, Purchasing prints the promised
date. If you provided a need by date, Purchasing prints the
need by date. Otherwise, this space is blank.
10
N/
A
Delivery Date/Time
Purchasing prints the promised date and need by date,
labeled PROMISED: and NEEDED:.
N/
A
Quantity
Purchasing prints the quantity of the item you are
ordering if the line type is quantity-based (in number
format 999999999 with any existing decimal places,
portrait and landscape).
P/L
P/L
Unit (PDF: UOM)
Purchasing prints the item unit of measure for
quantity-based items.
4
4
Unit Price (PDF: Unit
Price (Curr))
Purchasing prints the item unit price if the line type is
quantity-based (in number format 999999999999 with any
existing decimal places in the precision associated with the
currency, portrait and landscape)
P/L
P/L
Communication With Suppliers 8-11
Field
Description
Tex
t
PO
PD
F
PO
Extension (PDF:
Amount (Curr))
Purchasing prints the total amount of the line. This
number is the product of the quantity and unit price. (in
number format 9999999999999 with any existing decimal
places in the precision associated with the currency,
portrait and landscape). For amount-based line types,
Purchasing prints the price extension only for single
shipments.
P/L
P/L
Tax
For single shipments, Purchasing prints Y or N to indicate
whether this is a taxable item.
1
1
UN Number
If you associate a UN number with a purchase order line,
Purchasing prints UN Number: [UN number and
description]. The UN number and description can contain
up to 240 characters. Purchasing prints 87 characters per
line for landscape orientation (60 for portrait) and
automatically wraps to the next line. See: Purchasing
Hazardous Materials, page 1-49.
P/L
P/L
Hazard Class
If you associate a hazard class with a purchase order line,
Purchasing prints Hazard Class: [hazard class name].
Purchasing prints up to 87 characters per line for
landscape orientation (60 for portrait). See: Purchasing
Hazardous Materials, page 1-49.
P/L
P/L
Contractor Name
For temporary labor orders; the contractor's name, start
date, and end date.
N/
A
Price Differentials
For temporary labor orders, the price differentilals for this
purchase order.
N/
A
After printing the first line of the purchase order, Purchasing prints the following if
they pertain to the purchase order:
•
Brief Supplier Line Note
•
Long Supplier Line Notes
•
Agreement Number References
•
This PO line references your Quotation #: [quotation number]
8-12 Oracle Purchasing User's Guide
Standard and Planned Purchase Order Shipments
After printing each line, Purchasing prints the following shipment information:
•
o (In the text format, this symbol indicates a distinct shipment)
•
SHIP TO: [ship to address]. If the ship to address is the same as the one for the
purchase order header, Purchasing prints Address at top of page directly below the
SHIP TO: note without printing the address again. This address contains up to 3
lines of address. On line 4, Purchasing prints the city, state (or province), state, and
zip code. On line 5, Purchasing prints the country. (35 characters for lines 1 through
5, portrait and landscape)
After printing the bullet and address to signify a new shipment, Purchasing prints the
following information:
Tip: N/A indicates not available. P/L indicates differences between
portrait and landscape versions, see the description for details.
Field
Description
Tex
t
PO
PD
F
PO
Delivery Date
If you provided a promised date, Purchasing prints the
promised date. If you provided a need by date, Purchasing
prints the need by date. Otherwise, this space is blank.
10
N/
A
Delivery Date/Time
Purchasing prints the promised date and need by date,
labeled PROMISED: and NEEDED:.
N/
A
Quantity
Purchasing prints the quantity of the item you are ordering
for quantity-based items (in number format 999999999
with any existing decimal places, portrait and landscape).
P/L
P/
L
Unit (PDF: UOM)
Purchasing prints the item unit of measure for
quantity-based items.
4
4
Extension (PDF:
Amount (Curr))
For multiple shipments of amount-based line types,
Purchasing prints the total amount of the line. This
number is the product of the quantity and item price
override. (in number format 9999999999999 with any
existing decimal places in the precision associated with the
currency, portrait and landscape)
P/L
P/
L
Communication With Suppliers 8-13
Field
Description
Tex
t
PO
PD
F
PO
Tax
Purchasing prints Y or N to indicate whether this is a
taxable item. For amount-based line types, Purchasing
prints the tax flag only for multiple shipments.
1
1
Customer Name
For drop ship orders, the customer name. Purchasing
prints this as: Contractor Name: [Last Name, Title First
Name], Start Date: [DD-MMM-YYYY] End Date:
[DD-MMM-YYYY].
N/
A
Customer Contact
For drop ship orders; the customer contact name, phone
number, fax number, and e-mail address.
N/
A
If you cancelled a shipment, Purchasing prints the following information:
•
This shipment CANCELLED on: [date]
•
Original shipment quantity: [quantity]
•
Quantity CANCELLED: [quantity]
Standard and Planned Purchase Order Distributions
After printing each shipment, Purchasing prints the following distribution information:
•
DELIVER TO:
•
[Last Name], [First Name] [Middle Initial] ([quantity ordered]) if you provided a
requestor name on your purchase order distribution and if there is more than one
distribution. (54 characters, portrait and landscape)
For temp labor and service line types, Purchasing prints [Last Name, Title First
Name] [E-mail]
Field
Description
Te
xt
PO
Ship Method
For drop ship orders, the shipping method.
N/
A
8-14 Oracle Purchasing User's Guide
PD
F
PO
Field
Description
Te
xt
PO
Shipping Instructions
For drop ship orders, the shipping instructions.
N/
A
Packing Instructions
For drop ship orders, the packing instructions.
N/
A
Customer PO
For drop ship orders; Purchasing prints: Customer PO
Number: [customer's purchase order number], Line
Number: [customer's line number], Shipment Number:
[customer's shipment number].
N/
A
Customer Item
Description
For drop ship orders, the customer's item description.
N/
A
PD
F
PO
Agreement/Release Components
Blanket/Contract Purchase Agreement Header
Purchasing prints the following header information if it pertains to the purchase order:
•
Brief Supplier Note
•
Long Supplier Notes
•
Document Title
•
Effective Dates:
•
•
For the text format Purchasing prints EFFECTIVE FROM [start effective date]
TO [end effective date]. If you provide an effective start date without an
effective end date, Purchasing prints only EFFECTIVE FROM [start effective
date]. If you provide an effective end date without an effective start date,
Purchasing prints only EFFECTIVE TO [end effective date].
•
For the PDF format Purchasing prints Effective Start Date and Effective End
Date in the header.
Amount Agreed:
•
Text is Total agreement amount: [amount agreed]
•
PDF is Amount Agreed (Curr)
Communication With Suppliers 8-15
•
This purchase order CANCELLED on: [date]
•
CONFIRMATION -- DO NOT DUPLICATE
•
All prices and amounts on this order are expressed in [foreign currency].
Blanket Purchase Agreement Lines
After printing the header information, Purchasing prints the following line information:
Tip: N/A indicates not available. P/L indicates differences between
portrait and landscape versions, see the description for details.
Field
Description
Tex
t
PO
PD
F
PO
Line
Purchasing prints the purchase agreement line number
Item Number/
Description (PDF:
Part
Number/Description)
Purchasing prints your item number first. If you have an
item revision number, Purchasing prints [revision
number]. If you specify a supplier item number,
Purchasing prints (Your #: [supplier item number]) on the
next line. Purchasing then prints the item description on
the following line. (portrait - wraps after 23 characters per
line, landscape - wraps after 45 characters per line) (In PDF
Purchasing also includes the Supplier Configuration ID:
[Config ID])
P/L
P/L
Quantity
Purchasing prints the quantity committed of the item you
are ordering for quantity-based items (in number format
999999999 with any existing decimal places, portrait and
landscape)
P/L
P/L
Unit (PDF: UOM)
Purchasing prints the item unit of measure for
quantity-based items.
4
4
Unit Price
Purchasing prints the item unit price for quantity-based
items (in number format 999999999999 with any existing
decimal places in the precision associated with the
currency, portrait and landscape)
P/L
P/L
8-16 Oracle Purchasing User's Guide
Field
Description
Tex
t
PO
PD
F
PO
Extension (PDF:
Amount (Curr))
Purchasing prints the total amount committed for the line.
This number is the product of the quantity and unit price.
(in number format 9999999999999 with any existing
decimal places in the precision associated with the
currency, portrait and landscape). For amount-based line
types, Purchasing prints the price extension only for single
shipments.
P/L
P/L
Expires On
Purchasing prints the Expiration Date.
N/
A
12
After printing the first line of the purchase order, Purchasing prints the following
information if it pertains to the purchase order:
•
UN Number: [UN number and description, page 8-12]
•
Hazard Class: [hazard class name, page 8-12]
•
This purchase order line CANCELLED on: [date]
•
Brief Supplier Line Note
•
Long Supplier Line Notes
•
This PO line references your Quotation #: [quotation number]
Blanket Purchase Agreement Price Breaks
After printing each line, Purchasing prints the following price break information:
•
For the text version Purchasing prints the price break information on a single line
beginning with o SHIP TO: followed by the unit price, the unit of measure, and the
price break quantity. For details on how these are formatted see: Purchase Order
Shipments, page 8-13.
Purchasing then prints the ship to address directly below the SHIP TO: note
without printing the address again. This address contains up to 3 lines of address.
On line 4, Purchasing prints the city, state (or province), state, and zip code. On line
5, Purchasing prints the country. (35 characters for lines 1 through 5, portrait and
landscape)
•
For the PDF version Purchasing prints the price break information starting with the
title Price Break: followed by the price break quantity, unit of measure, and unit
Communication With Suppliers 8-17
price. For details on how these are formatted see: Purchase Order Shipments, page
8-13.
Purchasing then prints the ship to address directly below the Price Break: note
without printing the address again. This address contains up to 3 lines of address.
On line 4, Purchasing prints the city, state (or province), state, and zip code. On line
5, Purchasing prints the country. (35 characters for lines 1 through 5, portrait and
landscape)
Blanket Purchase Agreement Release Header
Purchasing prints the following header information if it pertains to the release:
•
Brief Supplier Note from Blanket Purchase Agreement
•
Long Supplier Note from Blanket Purchase Agreement
•
BLANKET AGREEMENT RELEASE (for blanket releases)
•
PLANNED PURCHASE ORDER RELEASE (for scheduled releases)
•
This release CANCELLED on: [date]
•
All prices and amounts on this order are expressed in [foreign currency].
Note: Planned purchase orders are not supported in PDF format.
Blanket Purchase Agreement Release Lines
After printing the header information, Purchasing prints the following line information:
Tip: N/A indicates not available. P/L indicates differences between
portrait and landscape versions, see the description for details.
Field
Description
Line
Purchasing prints the purchase order line number
8-18 Oracle Purchasing User's Guide
Tex
t
PO
PD
F
PO
Field
Description
Tex
t
PO
PD
F
PO
Item Number/
Description (PDF:
Part
Number/Description)
Purchasing prints your item number first. If you have an
item revision number, Purchasing prints [revision
number]. If you specify a supplier item number,
Purchasing prints (Your #: [supplier item number]) for text
or (Supplier Item: [Supplier item number]) for PDF on the
next line. Purchasing then prints the item description on
the following line. (portrait - wraps after 23 characters per
line, landscape - wraps after 45 characters per line) (For
PDF Purchasing also includes the Supplier Configuration
ID: [Config ID])
P/L
P/L
Unit Price
Purchasing prints the item unit price for quantity-based
items (in number format 999999999999 with any existing
decimal places in the precision associated with the
currency, portrait and landscape)
P/L
P/L
After printing the first line of the purchase order, Purchasing prints the following
information if it pertains to the purchase order:
•
UN Number: [UN number and description, page 8-12]
•
Hazard Class: [hazard class name, page 8-12]
•
This purchase order line CANCELLED on: [date]
•
Original quantity ordered: [quantity]
•
Quantity CANCELLED [quantity]
•
Brief Supplier Line Note
•
Long Supplier Line Notes
•
This PO line references your Quotation #: [quotation number]
Blanket Purchase Agreement Release Shipments
After printing each line, Purchasing prints the following shipment information:
•
o (This symbol indicates a distinct shipment)
•
SHIP TO: [ship to address]. If the ship to address is the same as the purchase order
header address, Purchasing prints Address at top of page directly below the SHIP
Communication With Suppliers 8-19
TO: note without printing the address again. This address contains up to 3 lines of
address. On line 4, Purchasing prints the city, state (or province), and zip code. On
line 5, Purchasing prints the country. (35 characters for lines 1 through 3, 74
characters for line 4, and 25 characters for line 5, portrait and landscape)
After printing the bullet and address to signify a new shipment, Purchasing prints the
following information:
Tip: N/A indicates not available. P/L indicates differences between
portrait and landscape versions, see the description for details.
Field
Description
Delivery Date
If you provided a promised date, Purchasing prints the
promised date. If you provided a need by date, Purchasing
prints the need by date. Otherwise, this space is blank.
Delivery Date/Time
Purchasing prints the promised date and need by date,
labeled PROMISED: and NEEDED:.
N/
A
Quantity
Purchasing prints the quantity of the item you are ordering
for quantity-based items (in number format 999999999
with any existing decimal places, portrait and landscape)
P/L
P/L
Unit (PDF: UOM)
Purchasing prints the item unit of measure for
quantity-based items.
4
4
Unit Price
Purchasing prints the item price override for
quantity-based items (in number format 999999999999
with any existing decimal places in the precision associated
with the currency, portrait and landscape)
P/L
P/L
Extension
Purchasing prints the total amount of the line. This number
is the product of the quantity and item price override. (in
number format 9999999999999 with any existing decimal
places in the precision associated with the currency,
portrait and landscape)
P/L
P/L
Tax
Purchasing prints Y or N to indicate whether this is a
taxable item.
1
1
Customer Name
For drop ship orders, the customer name.
N/
A
8-20 Oracle Purchasing User's Guide
Te
xt
PO
PD
F
PO
N/
A
Field
Description
Te
xt
PO
Customer Contact
For drop ship orders; the customer contact name, phone
number, fax number, and e-mail address.
N/
A
Ship Method
For drop ship orders, the shipping method.
N/
A
Shipping Instructions
For drop ship orders, the shipping instructions.
N/
A
Packing Instructions
For drop ship orders, the packing instructions.
N/
A
Customer PO
For drop ship orders; the customer's purchase order
number, line number, and shipment number.
N/
A
Customer Item
Description
For drop ship orders, the customer's item description.
N/
A
PD
F
PO
If you cancelled a shipment, Purchasing prints the following information:
•
This shipment CANCELLED on: [date]
•
Original shipment quantity: [quantity]
•
Quantity CANCELLED [quantity]
Blanket Purchase Agreement Release Distributions
After printing each shipment, Purchasing prints the following distribution information:
•
DELIVER TO:
•
[Last Name], [First Name] [Middle Initial] ([quantity ordered]) if you name the
requestor. Unspecified ([quantity ordered]) otherwise. (45 characters, portrait and
landscape)
Total
Purchasing prints Continued at the bottom of every page except for the last page of the
purchase order for the text version and Page x of y for the PDF version. Purchasing
prints the sum total of the purchase order lines on the bottom of the last page.
Communication With Suppliers 8-21
9
Receiving
Overview of Receiving
Purchasing lets you control the items you order through receiving, inspection, transfer,
and internal delivery. You can use these features to control the quantity, quality, and
internal delivery of the items you receive.
Purchasing provides you with the features you need to satisfy your receipt, inspection,
transfer, and delivery needs. You should be able to:
•
Use routing controls at the organization, supplier, item, or order level to enforce
material movement through receiving. For example, you can require inspection for
some items and dock-to-stock receipt for others. See: Receiving Controls, Options,
and Profiles, page 9-7.
•
Define receiving tolerances at the organization, supplier, item, and order level, with
the lowest level overriding previous levels. You can define tolerances for receipt
quantity, on-time delivery, and receiving location. You can assign looser tolerances
to low-value items that you consume at high volumes. You can set enforcement
options to ignore, warn the user, or reject transactions that violate the tolerances.
See: Receiving Controls, Options, and Profiles, page 9-7.
•
Use blind receiving to improve accuracy in the receiving process. With this option,
the quantity due for each shipment does not show and quantity control tolerances
are ignored. Also, the quantity is not visible in view windows or in reports.
However, if you choose to have visible receiving, then your receiving staff can see
the quantity due. See: Receiving Controls, Options, and Profiles, page 9-7.
•
Use Express Receipt to receive an entire purchase order with a few keystrokes. You
can exclude certain lines for express transactions. See: Express Receipts and
Receiving Transactions, page 9-23
•
Use Advance Shipment Notices (ASNs) to enter receipts in the Enter Receipts
Receiving 9-1
window, reducing data entry time. See: Advance Shipment Notices, page 9-15.
•
Use the Cascade function to distribute a given quantity of an item from a single
supplier across multiple shipments and distributions. This function is enabled by a
Receiving Options checkbox, Allow Cascade Transactions, and is available only
when you have specified a source and an item in the Find Expected Receipts
window. See: Cascading Receipts and Receiving Transactions, page 9-23.
•
Specify match approval levels. You can specify two-, three-, and four-way match
approval levels on a purchase order line. Purchasing uses your receiving and
inspection information to ensure that you only accept and pay for the items you
order, receive, or inspect. Choose the three-way match approval level if you want to
receive items before you allow payment. Choose the four-way match approval level
if you require inspection and acceptance of receipts before authorizing payment.
See: Receiving Controls, Options, and Profiles, page 9-7.
•
Print the receiving and inspection documentation you need. For example, you can
print Receipt Travelers. Also, you can prepare for incoming receipts by printing the
Expected Receipts Report to help you identify items and quantities you expect to
receive. You can use this report to plan your work, identify receipts satisfying an
urgent demand, and control unexpected receipts. Finally, you can produce
summary and detail receiving transaction reports by item, supplier, purchase order
number, and/or receiving date range. See: Receiving Reports, page 9-85.
•
Import receipts from other Oracle Applications, other non-Oracle systems,
barcoded and other electronic receiving sources, and advanced shipment notices
(ASN). See Receiving Open Interface, Oracle Manufacturing APIs and Open Interfaces
Manual.
•
Track, update, and record the receipt of intransit and inter-organization shipments.
•
Enter different types of receipt transactions based on your organization's needs. For
example, you should be able to record in one transaction a direct receipt of
inventory items into inventory.
•
Record receipt of unordered items based on your item, supplier, or organization
defaults. For example, if your organization does not allow receipt of unordered
items, you should not be able to enter a receipt unless it is matched to an order
shipment. See: Unordered Receipts, page 9-34.
•
Record receipt of predefined substitute items if you set your receiving options to
allow this feature. You define the acceptable substitutes during setup for the items
you purchase. See: Receiving Controls, Options, and Profiles, page 9-7.
•
Automatically update related supply information, inventory balances, WIP
operations, requisition details, and purchase order details while entering a single
receiving transaction.
9-2 Oracle Purchasing User's Guide
•
You can record transfers of inventory items from receiving and inspection to
inventory or to the shop floor. You can also record transfers of items to different
locations in the receiving and inspection area. For example, you might need to
move refrigerated items from the receiving dock into a cold storage area while you
are waiting to inspect them. Purchasing lets you record these types of transfers in
the same window you use to deliver to stock or expense.
•
Record receipts against services and labor. You can enter either the total value of
services received, or the amount of services tied to an invoice. For example, you
might receive 40 hours of consulting services.
•
Receive services, inventory, expense, and outside processing items using one
screen. You acknowledge receipt of services by receiving amounts of the service,
generally related to receipt of an invoice. You receive inventory items to expense or
asset subinventories, you receive expense items to the requestor, and you receive
outside processing to the shop floor (designated operations in your manufacturing
process).
•
Distinguish closed for invoicing from closed for receiving. Purchasing
automatically closes your purchase order for receipt when it is fully received. You
can manually close partially received purchase orders if you no longer expect any
more receipts against them. Close for invoicing and close for receiving are managed
using tolerances. You can specify that when you have received a certain percentage
of a shipment, Purchasing will close the receipt. This is a soft close, and you can
reopen the receipt. Purchasing rolls up closing to the line and header level, and
"Closed" information does not show in the Open Purchase Orders Report. Also, if
there is a remaining balance, closed quantities are no longer visible as supply
scheduled receipts to MRP/ATP.
•
Decide how you accrue un-invoiced receipts. For instance, you can accrue receipts
perpetually or at period-end for expense items. Purchasing uses perpetual accrual
for your inventory and shop floor item receipts. Purchasing and Inventory together
provide you with perpetual visibility and control on your accrued liabilities for
inventory items. Inventory lets you maintain the value of your inventories on a
perpetual basis. And Purchasing automatically records your accrued liability in
your general ledger as you enter receiving transactions. Purchasing also provides
you with complete visibility and control of your inventories values, accrued
liabilities for inventory and non-inventory items, purchase price variances, and
invoice price variances. And Purchasing provides you with the information you
need to facilitate your period close and your inventory, purchasing, and payables
reconciliation process. See: Overview of Receipt Accounting, page 9-86.
•
Identify and handle hazardous materials. You can use attachments to provide
detailed handling instructions. Purchasing displays hazardous material information
in the receiving, transfer, and inspection windows as well as on the Receipt
Traveler. See: Purchasing Hazardous Materials, page 1-49.
Receiving 9-3
•
Track the quantity and destination of internally delivered items. You know exactly
what items you receive and where to deliver them within your organization.
•
Define detailed rules for locator within subinventories for the disposition of
inventory receipts. See: .Defining Stock Locators, Oracle Inventory User's Guide
•
Track lot and serially controlled items. See: Control Numbers, page 9-83.
•
Define which of your items require inspection. Purchasing lets you inspect received
items before you move the items into stock or deliver them to the requestor. You
can accept or reject items and provide detailed information about your inspection
results. Purchasing lets you review your inspection results on-line. You can review
your inspection results by receipt number, purchase order number, supplier, item,
and/or transaction date range. Purchasing also provides summary and detail
reports to help you analyze your suppliers' performance. You can produce supplier
quality reports by buyer, supplier, and item. You can use the receiving inspection
register to review your inspections by receipt. See: Inspections, page 9-63.
•
Record returns to suppliers. You can return items that are damaged on receipt or
that fail your inspection process. If you return items that you have already
delivered to inventory, Purchasing automatically updates the inventory stock
levels. See: Returns, page 9-66.
•
Enable the automatic creation of debit memos for Return to Supplier transactions.
See: Debit Memos, page 9-14.
•
Correct receiving transaction errors. Purchasing automatically updates the
inventory balances if you correct the quantities of items that have already been
moved into inventory. See: Corrections, page 9-73.
•
Use flexible search criteria to choose receipts for review.
•
View receipts details. You should be able to view all the details of your receipt,
including matching purchase order and shipment information.
•
Perform transactions with minimal effort. For example, you can record a complete
receipt with only a few mouse clicks.
•
Use attachments throughout the receiving process to more completely identify
transactions and to inform users of special requirements. See: Attaching Notes to
Purchasing Documents, page 1-32.
•
Record drop shipments as receipts once the supplier informs you that the drop
shipment has been delivered to the customer. See: Drop Shipments, page 4-113.
•
Receive purchase orders for kanban replenishment requests that were generated
from Oracle Inventory. Once you record delivery of a kanban item through the
9-4 Oracle Purchasing User's Guide
Receipts or Receiving Transactions windows, Inventory automatically receives a
status of Full for the order, indicating that the inventory supply has been
replenished. See: Demand for Internal Requisitions, page 3-16.
•
Capture exchange rate information on the receipt. See: Entering Receipt Lines, page
9-30.
•
Capture and update an item's country of origin on the receipt. See: Entering Receipt
Lines, page 9-30.
•
Capture movement statistics at the time of receipt. See: Movement Statistics, page 96.
•
Provide support for electronic signatures for receipts and inspections. See;
Inspecting Received Items, page 9-65.
•
Enable inventory items to display shortage messages upon receipt, if a shortage
exists, so that the responsible person can make the item available with a high
priority. See: Material Shortage Alerts and Shortage Notifications, Oracle Inventory
User's Guide.
•
Receive items returned by a customer. See: Return Material Authorizations (RMAs),
page 9-13.
•
View inbound shipment details using the waybill number.
Centralized Purchasing for Multiple Receiving Organizations
Purchasing provides complete centralized procurement support. You can leverage your
purchasing power by consolidating the requirements from different plants, warehouses,
and office sites; yet retain receiving support. You can define separate, autonomous
receiving organizations for each of these sites.
Use the Change Organization window (See: Changing Your Organization, Oracle Master
Scheduling/MRP and Supply Chain Planning User's Guide) to choose your receiving
organization. With the Receipts window, you can receive goods only for your current
organization. The current organization code is displayed in the title bar of the Receipts
window. (See: Entering Receipt Lines, page 9-30.) For supplier shipments, you specify
the receiving organization on the purchase order shipment. For intransit inventory
shipments, you specify the receiving organization when you create the intransit
shipment. For internal requisitions, you use the destination organization to specify the
receiving organization. For customer returns, the sales representative specifies the
organization on the return material authorization (RMA) in Order Management.
All other receiving windows can access receiving only in your current organization.
You also must deliver to the same organization in which you received the goods.
Use the Manage Shipments window to update intransit information to provide accurate
Receiving 9-5
expected delivery date information to better plan your production processes. See:
Managing Shipments, page 9-81.
Receiving Locations
Receiving locations are designated areas in which you temporarily store items before
you deliver them to their final destinations. Your receiving dock and the area in which
items are inspected are receiving locations. See: Defining Locations, page 1-17.
Receiving locations are not required when the routing is Direct Receipt, when you are
delivering goods to their final locations. However, when the routing is Standard
Receipt, you initially receive the items into a receiving location, and you must specify
the receiving location. If the routing is Inspection Required, you could transfer the items
to an inspection location before delivering them to their destination. If necessary, you
can create additional receiving locations, such as a cold storage area where items can be
held pending inspection.
Related Topics
Entering Receipt Header Information, page 9-29
Receiving Transactions, page 9-39
Inspections, page 9-63
Movement Statistics
You can automate the collection of movement statistics-or information associated with
the movement of goods-by following the instructions in: Setting Up Movement
Statistics, Oracle Inventory User's Guide. (You can set up this functionality in Purchasing
even if Inventory is not fully installed.) Once you set up the automatic collection of
movement statistics and start the Movement Statistics Processor, the system records
movement statistics automatically from the purchase order, internal requisition,
return-to-supplier, and drop shipment receipt transactions.
You can also update movement statistics in the Movement Statistics window, which is
accessible through the Receiving menu in Purchasing. For example, if the Movement
Statistics Exceptions Report shows missing information, you can query and update the
movement statistics record in the Movement Statistics window. For information on this
window, see: Entering and Maintaining Movement Statistics, Oracle Inventory User's
Guide.
Once you have set up the automatic collection of movement statistics, run the
Movement Statistics Processor to compile all of the material transactions for a defined
period to automatically create Intrastat and Extrastat records. Then run the movement
statistics reports. See: Automatically Generating Movement Statistics, Oracle Inventory
User's Guide.
Use e-Commerce Gateway to report the information to government agencies. See:
Running the Movement Statistics Extract Program, Oracle e-Commerce Gateway User's
9-6 Oracle Purchasing User's Guide
Guide.
Related Topics
Overview of Movement Statistics, Oracle Inventory User's Guide
Receiving Controls, Options, and Profiles
Purchasing provides you with all the necessary functionality to set up flexible
purchasing and receiving controls, control options, and profile options. The profile
options can be set at the site, application, responsibility, or user level. The receiving
controls and options can be set at one or more of the following levels: order, item,
supplier, organization, and system. Controls at any level override those at a higher
level. For example, item level controls override supplier controls but are overridden by
order controls.
Use the Profile Options window to set profile options for receiving. Use the Receiving
Controls window (See: Entering Purchase Order Receiving Controls, page 4-71.) and the
More tabbed region in the PO Shipments window (See: Entering Purchase Order
Shipments, page 4-67.) to set receiving options at the order level. Use the Item window
(See: .Defining Items, Oracle Inventory User's Guide) to set receiving options at the item
level. Use the Supplier window (See: Suppliers, Oracle iSupplier Portal Implementation
Guide.) to set receiving options at the supplier level. Use the Receiving Options window
(See: Defining Receiving Options, page 1-41.) to set receiving options at the organization
level. Use the Purchasing Options window (See: Defining Purchasing Options, page 132.) to set receiving options at the system level. You can set the following receiving
options:
•
Match approval level, which determines whether the items on a purchase order line
must be received and/or inspected before the corresponding invoice can be paid.
See: Defining Default Options, page 1-37. You can override this option for specific
suppliers, items, and orders.
•
The Invoice Close % tolerance for your shipments. Purchasing automatically closes
a shipment for invoicing if it is within the invoicing closing tolerance at billing,
when Payables matches invoices to purchase orders or receipts. See: Defining
Default Options, page 1-37. You can override this option for specific items and
orders.
•
The Receipt Close % tolerance for your shipments. Purchasing automatically closes
a shipment for receiving if it is within the receiving closing tolerance at the
receiving close point. See: Defining Default Options, page 1-37. Note also that in the
Find Expected Receipts form you have the option to include closed purchase orders
when you are entering search criteria. You can override this option for specific
items and orders. See: Finding Expected Receipts, page 9-25.
•
The Receipt Close Point, when the shipment is closed for receiving: Accepted
Receiving 9-7
(passed inspection), Delivered, or Received. See: Defining Control Options, page 133.
•
Whether expense accrual is on receipt or at period end. See: Defining Accrual
Options, page 1-39.
•
The default expense AP accrual account. See: Defining Accrual Options, page 1-39.
•
Automatic or manual receipt numbering. If you choose Automatic, you can also set
the start of the receipt number sequence. This is used with manual receipt
numbering for inter-organization direct receipts. See: Defining Numbering Options,
page 1-40.
•
Alphanumeric or numeric receipt numbering. See: Defining Numbering Options,
page 1-40.
•
Whether you can receive a defined substitute item instead of the originally ordered
item. See: Defining Receiving Options, page 1-41. You can override this option for
specific suppliers, items, and orders.
•
Whether you can receive unordered items. See: Defining Receiving Options, page 141. You can override this option for specific suppliers and items.
•
Whether you allow express transactions. See: Defining Receiving Options, page 1-41
.
Express receipt/delivery allows you to receive/deliver the entire quantity of all
selected shipments (except those you specifically omit) without entering specific
quantities for each shipment and distribution
•
Whether you allow cascade transactions. See: Defining Receiving Options, page 141.
The cascade function lets you distribute a quantity of an item from a single supplier
across multiple shipments and distributions.
•
Blind receipt. If you choose this option, Purchasing does not enforce quantity
tolerances, nor does it display the Quantity Due or the Quantity Ordered for
shipments on line or on receiving worksheets. See: Defining Receiving Options,
page 1-41.
•
Whether goods can be received only to the receiving location that was defined as
the ship-to location on the purchase order and whether Purchasing prohibits the
transaction, displays a warning message while permitting the transaction, or
permits the transaction without a warning. See: Defining Receiving Options, page
1-41. You can override this option for specific suppliers, items, and orders.
•
The maximum acceptable over-receipt percentage and whether Purchasing
9-8 Oracle Purchasing User's Guide
prohibits the transaction, displays a warning message while permitting the
transaction, or permits the transaction without a warning. See: Defining Receiving
Options, page 1-41. You can override this option for specific suppliers, items, and
orders.
•
The number of calendar days before and after the purchase order delivery date that
you allow receipt and whether Purchasing prohibits the transaction, displays a
warning message while permitting the transaction, or permits the transaction
without a warning. See: Defining Receiving Options, page 1-41. You can override
this option for specific suppliers, items, and orders.
•
The receiving account for your accrual entries. See: Defining Receiving Options,
page 1-41.
•
The default receipt routing that you assign goods: Direct Delivery, Standard
Receipt, or Inspection Required. See: Defining Receiving Options, page 1-41. You
can override this option for specific suppliers, items, and orders.
•
Whether you can override the destination type at receipt time. This is a profile
option (RCV: Allow Routing Override) that you can set at the application,
responsibility, or user level. See: Profile Options in Purchasing, page C-1.
•
Whether receipt travelers are automatically printed when you perform a receipt or
receiving transaction, and match an unordered receipt. This is a profile option
(RCV: Print Receipt Traveler) that you can set at the site, application, responsibility,
or user level. See: Profile Options in Purchasing, page C-1.
•
The processing mode for receiving transactions: Batch, Immediate, or Online. (See
Receiving Transaction Processor, page 12-25.) This is a profile option (RCV:
Processing Mode) that you can set at the site, application, responsibility, or user
level. See: Profile Options in Purchasing, page C-1.
•
Whether or not you receive an error message-or are prevented by Purchasing-when
you attempt to receive against a purchase order shipment for which an Advance
Shipment Notice (ASN) already exists. This is done through an option (ASN
Control) in the Receiving Options window. See: Defining Receiving Options, page
1-41. See also: Advance Shipment Notices (ASNs), page 9-15.
•
Whether to reject an entire Advance Shipment Notice (ASN) if any ASN line fails
validation or processing, or to accept an ASN if at least one ASN line is successful.
This is a profile option (RCV: Fail All ASN Lines if One Line Fails). See: Profile
Options in Purchasing, page C-1. See also: Advance Shipment Notices (ASNs),
page 9-15.
•
Whether to automatically receive and deliver an ASN for a drop shipment order.
This is a profile option (PO: Automatically Deliver Drop Ship ASNs). See: Profile
Options in Purchasing, page C-1. See also: Advance Shipment Notices (ASNs),
Receiving 9-9
page 9-15.
Receiving Controls Matrix
Control
Purchasin
g Options
Window
Receiving
Options
Window
Match
Approval
Level (2-,
3-, or
4-way)
X
Invoice
Close
Tolerance
X
Receipt
Close
Tolerance
X
Receipt
Close
Point
Supplier
Window
Item
Window
PO
Shipment
s Window
*
User
Profile
Window
X
X
X
X
X
X
X
Expense
Accrual
Point
X
Expense
AP
Accrual
Account
X
ASN
Control None,
Reject,
Warning
9-10 Oracle Purchasing User's Guide
X
X
Control
Purchasin
g Options
Window
Receiving
Options
Window
Supplier
Window
Item
Window
PO
Shipment
s Window
*
User
Profile
Window
Receipt
Numberin
g - Auto or
manual /
alpha or
numeric
X
Allow
Substitute
Items
X
X
X
Allow
Unordered
Items
X
X
X
Allow
Express
Transactio
ns
X
Allow
Cascade
Transactio
ns
X
Allow
Blind
Receiving
X
Enforce
Ship-To
Location
X
X
X
X
Overrecei
pt
Tolerance
X
X
X
X
Early/Late
Receipt
Tolerance
X
X
X
X
X
Receiving 9-11
Control
Purchasin
g Options
Window
Receiving
Options
Window
Supplier
Window
Item
Window
PO
Shipment
s Window
*
User
Profile
Window
Receiving
Account
X
Receipt
Routing
X
Allow
Routing
Override
X
Fail All
ASN Lines
if One
Line Fail
System
Profile
Print
Receipt
Traveler
X
Processing
Mode
X
X
X
X
* Note: Controls are entered through the More tabbed region in the PO Shipments
window (See: Entering Purchase Order Shipments, page 4-67) or through the Receiving
Controls window (See: Entering Purchase Order Receiving Controls, page 4-71), which
is accessible only through the PO Shipments window.
Receipt Tolerances
You may want to allow over-receipts on items that you use frequently within your
organization, and you can prevent misallocation of shipments to incorrect destinations
by setting tolerance levels and the control action. You can over-receive for a particular
item if the over-receipt quantity is within tolerance, and you can set the control action to
allow all over-receipts, permit over-receipts outside the tolerance but issue a warning
message, or reject over-receipts outside the tolerance. See: Receiving Controls, Options,
and Profiles, page 9-7.
Example
You order 100 boxes of shelf braces and indicate on the purchase order that this order
requires a receipt. You decide to relax the restriction on the receiving tolerance for
shelves since shelves are a low cost/high turnover item. You define the receiving
9-12 Oracle Purchasing User's Guide
tolerance level for shelves to be 10% but choose to allow receipts over this tolerance
level after displaying a warning.
At the receiving dock, the receiving agent receives 111 boxes of shelf braces and enters a
receipt for all of them. The receiving agent can accept them all because your system
setup allows receipt over tolerance for this item.
Later, you determine that you are not using all the shelf braces you had predicted, and
you decide to change the tolerance level to 3% and to not allow receipts over tolerance.
In the next shipment, you receive another 111 boxes of shelf braces. Again, the purchase
order was for 100 boxes. The receiving agent attempts to receive 111, but Purchasing
displays an error message stating that the receipt quantity is over tolerance and does
not let the receiving agent record the over receipt. So, this time the receiving agent can
receive only 103 and must reject the additional 8.
Return Material Authorizations (RMAs)
You can use Purchasing's receiving functionality to receive goods returned by your
customers. These are goods for which a sales order in Oracle Order Management was
created. If the customer wishes to return the goods, the sales representative creates a
return material authorization (RMA) authorizing the return. When the return arrives at
your receiving dock, you can create a receipt against the RMA as you would any other
receipt, inspect the return, return the repaired goods to the customer, and make
receiving corrections. Use the Customer tabbed region of the receiving Find windows to
search by customer name, item number, or RMA number. See: Finding Expected
Receipts, page 9-25.
If an RMA does not exist for a customer return, you can create an unordered receipt
while you find out from the sales representative which RMA to use. See: Unordered
Receipts, page 9-34. Use the Receiving Returns window to return the item to the
customer if a return is not authorized or after the goods have been repaired.
RMAs use the default receipt routing defined in the Receiving Options window. They
use the receipt tolerance that was defined in Order Management when the RMA line
was created. The RMA reflects the received, or partially received, quantity while the
remaining quantity remains open.
Lot and serial numbers are handled for RMAs as they are for any other item or receipt.
You cannot cascade RMA receipts.
Example
Your company makes computer boards. A sales representative creates sales orders
using Order Management and ships the boards to customers. One of your customers
receives a shipment of 20 boards, which do not work properly, and calls the sales
representative. The sales representative creates an RMA in Order Management
authorizing the return of the boards. The RMA line is created with a line type of Return
with Receipt of Goods.
When the boards arrive at your receiving dock, you enter the customer name, item
number, or RMA number in the Find Expected Receipts window and create a receipt.
Receiving 9-13
Purchasing automatically updates the RMA to reflect the quantity received.
You use the Inspection window to record your inspection of the boards. Inspection
confirms that all 20 of the returned boards are defective. You use the Receiving
Transactions window to deliver the boards to their final destination. Purchasing
automatically updates the RMA with the quantity fulfilled.
See: Overview of Returns, Oracle Order Management User's Guide.
Debit Memos
You can automatically generate debit memos for Return To Supplier transactions if an
invoice has been created. To enable this functionality, enable the supplier site as a Pay
Site (or indicate an Alternate Pay Site) and select Create Debit Memo from RTS
Transaction in the Supplier Sites window. See: Entering Supplier Information, Oracle
iSupplier Portal Implementation Guide. When you create the return, make sure the Create
Debit Memo Option is selected in the Returns window. Once you enable this
functionality, a debit memo is created for each return line you enter in the Returns
window.
•
The debit memo number contains the original receipt number. Self-Biiling Invoice
numbering affects debit memos. See: Self-Billing Invoices, page 12-16.
•
The debit memo is dated with the return transaction date. If this date does not fall
within an open period in Oracle Payables, the date defaults to the first open date
available in Payables.
•
The payment schedule on the debit memo is based on the purchase order payment
terms (in the Terms and Conditions window) and the invoice terms defined in
Payables.
•
The debit memo is calculated by multiplying the returned quantity by the purchase
order item unit price. If the purchase order is in a foreign currency, and you
perform invoice matching to receipts, Purchasing uses the currency conversion rate
at the time of receipt to calculate the unit price.
•
The debit memo does not include tax and freight charges.
•
If the unit of measure (UOM) on the return in the Returns window differs from the
purchase order UOM, Purchasing restates the return quantity on the debit memo in
terms of the purchase order UOM.
•
If an Advance Shipment Notice (ASN) or an ASN with billing information (ASBN)
exists for the receipt, the unit price from the ASN or ASBN is used.
•
Purchasing does not automatically include corrections to returns in debit memos; in
this case, you need to adjust the debit memo manually. See: Entering Debit/Credit
Memos, Oracle Payables User's Guide. Purchasing does not create debit memos for
9-14 Oracle Purchasing User's Guide
returns against unordered receipts.
•
If an invoice has not yet been created for the receiving transaction or if Payment on
Receipt already accounted for the return using the Aging Period functionality, a
debit memo will not be created. Whenever a debit memo cannot be created, you
will receive a notification in the Notifications Summary window.
•
Similarly, the Aging Period functionality in Payment on Receipt does not include
returns for which a debit memo was already created, so that duplicate debits are not
made. See: Payment on Receipt, page 12-14.
You can match the debit memo to the purchase order or receipt. See: Matching
Credit/Debit Memos in the Invoices chapter/section of the Oracle Payables User's Guide.
Drop Shipment Receipts
Drop shipment orders are always received with a receipt routing of direct delivery,
ignoring the routing indicated on the original purchase order. The receipt and delivery
are processed immediately for these orders.
You can have drop shipment ASNs received automatically by setting the profile PO:
Automatically Deliver Drop Ship ASNs to Yes. See: Profile Options in Purchasing, page
C-1 See also: Advance Shipment Notices (ASNs), page 9-15.
Receiving Open Interface
Using the receiving open interface, you can import receipts from other Oracle
Applications or from non-Oracle systems. The receiving open interface lets you
integrate Oracle Purchasing with new or existing applications such as Oracle
Warehouse Management. See: Receiving Open Interface, Oracle Manufacturing APIs and
Open Interfaces Manual.
To use the receiving open interface, your application must load the receiving
information into the interface tables and then the Receiving Transaction Processor is
run. See: Receiving Transaction Processor, page 12-25.
Advance Shipment Notices (ASNs)
An Advance Shipment Notice (ASN) is transmitted using Electronic Data Interchange
(EDI) or Extensible Markup Language (XML) from a supplier to let the receiving
organization know that a shipment is coming. The ASN contains details including
shipment date, time, and identification number; packing slip data; freight information;
item detail including cumulative received quantities; country of origin; purchase order
number; and returnable container information.
Once an ASN is successfully validated, you can use it in the Receipts window to create
receipts, reducing data entry time. (A validated ASN is one that contains no errors
during data validation in the Receiving Open Interface.)
Receiving 9-15
Suppliers can also send ASNs with billing information. These contain the same
information as ASNs plus invoice and tax information. Once an ASN with billing
information (also known as an ASBN) is validated in the receiving open interface and
imported into Purchasing, an invoice for the shipment is created automatically.
A supplier creates an ASN based on the demand conveyed by the purchasing
organization's Purchase Order, Planning Schedule, or Shipping Schedule. If Purchasing
detects errors or discrepancies in the ASN at any time, from the time the ASN is sent to
the time it is entered as received, an Application Advice, transmitted via EDI, is sent
automatically to the supplier. The supplier can then send a corrected ASN.
Important: ASNs come from external suppliers only. They cannot be
used for internal sales orders sourced from your inventory and
generated by internal requisitions.
You can view or cancel an accepted ASN as an intransit shipment in the Manage
Shipments window.
You can match invoices to receipts created from ASNs. You can also match ASBN
invoices to receipts.
ASN Process
The ASN process, shown in the next figure, includes the following:
•
A shipment authorization is made to the supplier in the form of a Purchase Order,
Planning Schedule, or Shipping Schedule.
•
The supplier sends the ASN to the receiving organization at the time of shipment.
•
The ASN is verified in the Receiving Open Interface. Intransit and purchasing
supplies are updated for ASN lines that are successfully validated. For each
accepted line on the ASN, intransit supply is increased and purchasing supply is
reduced. If the data isn't accepted or if there is an error or discrepancy in the data,
an Application Advice, containing the most likely cause of the error, is sent to the
supplier. The supplier can then send a corrected (New) ASN.
•
The goods arrive. You can use the ASN in the Receipts window to create receipts.
•
Shipment-vs.-receipt quantities are compared during the receipt transaction
process. (As an optional step, CUM quantities can be compared if Oracle Supplier
Scheduling is installed.) If discrepancies are detected in shipment-vs.-receipt or
CUM quantity comparisons, an Application Advice is sent to the supplier.
9-16 Oracle Purchasing User's Guide
ASN Receiving Options
There are several receiving options related to ASNs:
•
ASN Control option in the Receiving Options window - With this option, you can
choose whether or not you receive an error message-or are prevented by
Purchasing-when you attempt to receive against a purchase order shipment for
which an ASN already exists. See: Defining Receiving Options, page 1-41.
•
RCV: Fail All ASN Lines if One Line Fails - With this profile option, you can choose
to reject an entire ASN if any ASN line fails validation or processing, or to accept an
ASN if at least one ASN line is successful. See: Profile Options in Purchasing, page
C-1.
•
ASNs for drop shipment orders can be received and delivered automatically with
the profile PO: Automatically Deliver Drop Ship ASNs. See: Profile Options in
Purchasing, page C-1.
Application Advices
If an ASN is not accepted or is only partially accepted, errors and discrepancies are
electronically conveyed to the supplier in an Application Advice. The Application
Advice transmits to the supplier the status (acceptance with errors or rejection) of the
ASN, and the severity and description of the errors.
Receiving 9-17
An Application Advice can be sent at several points during the receiving process:
•
When the ASN is first sent and contains header or line errors.
•
When the quantity received does not match the quantity shipped indicated by the
ASN.
•
When the receiving organization's newly updated cumulative received quantities
do not match the supplier's cumulative shipped quantities.
Note: CUM quantity comparisons can be performed only if Oracle
Supplier Scheduling is installed.
The supplier can respond to an Application Advice by sending a Cancellation ASN
followed by a corrected (New) ASN. The receiving organization can also cancel an ASN
manually in the Manage Shipments window.
The following table indicates the appropriate supplier response to particular
Application Advices.
ASN Header
ASN Lines
Transaction Status
Supplier Action
Fatal Error
Not Validated
Transaction Rejected
Send New ASN
before goods arrive.
Warning or Valid
All lines Warning or
Valid (no fatal errors)
Transaction Accepted
Do not send a New
ASN, but correct
indicated problems
on future ASNs.
Warning or Valid
Some Warning Some
Valid Some Fatal
Error
Transaction Accepted
with Some Lines
Rejected
Send Cancellation
ASN, then send a
New (corrected) ASN.
Warning or Valid
All lines had a Fatal
Error
Transaction Rejected
Send a New
(corrected) ASN
before goods arrive.
Types of ASNs
There are three types of ASNs:
•
A New ASN is the initial ASN.
An ASN can also contain substitute item information. To accurately handle
substitutions, the supplier must indicate both the buyer's original item number and
9-18 Oracle Purchasing User's Guide
the buyer's substitute item number on the ASN. With both identifiers available,
substitutes can be validated as allowed, and a valid substitute item is referenced
against valid purchasing document information.
•
A Cancellation ASN, once validated, cancels the original (New) ASN if the original
(New) ASN has not yet had a receipt created against it. The shipment number on the
Cancellation ASN is matched to the shipment number on the validated, original
(New) ASN.
•
A Test ASN is sent by the supplier usually to make sure the ASN transmission
works between you and your supplier. A Test ASN is verified as if it were a New
ASN and generates an outbound Application Advice if necessary. A Test ASN is
not available for creating a receipt against it and is not visible as inbound supply.
Note: A validated ASN, as described above, is one that contains no
errors during data validation in the Receiving Open Interface.
ASNs and CUM Management
You can perform CUM management under the following conditions:
•
Oracle Supplier Scheduling is installed and CUM Accounting is enabled for the
ship-to organization.
•
The ASN item or items are defined in the Approved Supplier List.
•
The items are sourced from the supplier using a Supply Agreement Blanket
Purchase Order.
The CUM is the total quantity received from a supplier site, for a particular item, within
a CUM period. When an ASN is used during receiving and Supplier Scheduling is
installed, the updated CUM is compared to the supplier's CUM. Any discrepancy
transmits an Application Advice to the supplier. For more information about CUM
management, see: CUM Management, Oracle Supplier Scheduling User's Guide.
ASNs and Supply
For each accepted line on the accepted ASN, intransit supply quantity is automatically
increased and purchasing supply quantity is automatically reduced by the shipment
quantity specified in the ASN.
When an accepted ASN is cancelled or a corrected ASN is sent, corresponding changes
are also made to purchasing and intransit supply. (A supplier can send a Cancellation
ASN or you can cancel the ASN in the Manage Shipments window.)
The table below shows, for each action you perform with an ASN, the movement of the
quantity on the ASN between the various categories of supply.
Receiving 9-19
ASN Action
Purchasing Supply
Intransit Supply
Accept the New ASN
Reduced for accepted
lines only
Increased for
accepted lines only
Accept the
Cancellation ASN
Increased for all
accepted lines on
New ASN
Reduced for all
accepted lines on
New ASN
Receive item when
the item is indicated
on an ASN line
Receive item when
the item is not
indicated on an ASN
line
Reduced
Reduced
Increase receipt
quantity before the
ASN is closed
Increase receipt
quantity after the
ASN is closed
Decrease receipt
quantity after the
ASN is closed
Reduced
Return item(s) to the
supplier after the
ASN is closed
Increased
9-20 Oracle Purchasing User's Guide
Reduced
Reduced
Increased
Increased
Increased
Increased
Increased
Return item(s) to the
supplier before the
ASN is closed
Increased
Increased
Reduced
Decrease receipt
quantity before the
ASN is closed
Inventory
Reduced
Reduced
ASN Action
Purchasing Supply
Intransit Supply
Close the Purchase
Order while an ASN
for that purchase
order is open
Reduced
Reduced
Inventory
Related Topics
Entering Receipt Lines, page 9-30
Managing Shipments, page 9-81
Profile Options in Purchasing, page C-1
Advanced Shipment Notice Discrepant Receipts Report, page 11-3
Receiving Interface Errors Report, page 11-67
Oracle Manufacturing, Distribution, Sales and Service Open Interfaces Manual
Oracle e-Commerce Gateway Implementation Manual
Managing Receipts
Using the Find Expected Receipts Window
When you enter a receipt, you first use the Find Expected Receipts window to locate the
source document for the receipt: a shipment from a supplier based on a purchase order,
a shipment from inventory backed by an internal sales order generated by an internal
requisition, an intransit shipment within your inventory, or a return from a customer
based on a return material authorization (RMA).
Receiving Shipments
Once you have entered your search criteria, you move to the Receipts window, where
all the supplier shipments and inter-organization shipments corresponding to your
search criteria are displayed. You can receive goods into a receiving location or to their
final destination. When you receive goods into a receiving location, you then use the
Receiving Transactions window to optionally inspect and/or transfer receipts between
receiving locations before you deliver the receipts to their final destination specified on
the source document. You can also receive and deliver to a final destination in one
transaction using the Receipts window. You can either use Express Receipt to receive all
quantities as shipped, or you can enter specific receipt quantities for shipments. You can
modify information, such as the receipt number and packing slip number. When
suppliers have consolidated orders onto a single shipment, you can use the Cascade
Receiving 9-21
function to allocate the shipment across orders during entry of receipts.
If the RCV: Print Receipt Travelerprofile option is set to Yes, receipt travelers are
printed automatically when you perform receipts or receiving transactions. See: Profile
Options in Purchasing, page C-1.
You can also record the receipt of substitute and unordered items. Purchasing records
the shipment for the unordered items when you enter the receipt. You cannot perform
receiving transactions upon the receipt until you match it to an order. See: Matching
Unordered Receipts, page 9-36
Related Topics
Finding Expected Receipts, page 9-25
Express Receipts and Receiving Transactions, page 9-23
Cascading Receipts and Receiving Transactions, page 9-23
Unordered Receipts, page 9-34
Receiving Transactions, page 9-39
Return Material Authorizations (RMAs), page 9-13
Multiple Distributions
If you're familiar with the previous release of Purchasing, you may remember you had
to use a separate screen when entering receipts for purchase orders with multiple
distributions. In the current release of Purchasing, you can explode a single shipment
into its component distributions in the Receipts window.
When you initially query up a shipment line that has multiple distributions, there will
be a + icon to the right of the UOM field for all lines with a Destination Type of
Multiple. Shipment lines for which there is only a single distribution will not have the +
icon. You can click on the + icon to expand the line into multiple lines, one for each
distribution. The original shipment line will appear grey and will not be updatable. The
+ icon on that line will change to a - icon. Click on the - icon to end the display of the
expanded lines.
You can distribute the available quantity across the expanded lines, but you cannot
distribute more than the available quantity shown in the parent shipment quantity
column. Also, you can enter and maintain line information only in the expanded lines.
If the default routing is direct receipt and routing override is not enabled, you can
explode the line and transact the receipt at the distribution level, but you cannot change
any of the values on that line. If the default routing is standard receipt and routing
override is enabled and there are multiple destinations, Purchasing displays the
destination type Receiving and the + icon is not present. If you want to override the
routing and send it to final, you must first change the destination type to Multiple. Then
the + icon will appear, and you can expand to see all of the distribution lines and change
any or all to have a destination type of final.
9-22 Oracle Purchasing User's Guide
Cascading Receipts and Receiving Transactions
The Cascade function facilitates the distribution of a given quantity of an item from a
single supplier across multiple shipments and distributions. This function is available in
the Receipts window if you have specified a Supplier and Item in the Find Expected
Receipts window and if Allow Cascade Transactions is enabled in the Receiving
Options window. In the Receiving Transactions window, the cascade function is
available for deliveries if you have specified an Item in the Find Receiving Transactions
window. Performing any manual transaction in a line disables the Cascade button, and
it is not enabled until you have again selected the Find button in the appropriate Find
window.
When you select the Cascade button, Purchasing displays the Cascade Details window
in which you must enter the cascade quantity and the unit of measure. When you select
the OK button, the cascade process begins.
The process starts at the first displayed line and allocates the supply available to
receive/deliver to that line from the cascade quantity you entered. The process
continues to the next line and again allocates the quantity available to receive/deliver,
continuing until either the process reaches the last queried line or the cascade quantity
is exhausted. Since the lines are displayed in order by promised date/need-by date, the
process operates as a First In/First Out procedure. If you entered a cascade quantity
larger than the quantity available to receive/deliver, Purchasing displays a dialog
window explaining that the process could allocate only so many. If the quantity
available to receive/deliver is greater than the cascade quantity, the last receipt/delivery
may be partial. To clearly indicate that the cascade quantity has been exhausted,
Purchasing displays a transaction quantity of 0 for the remaining lines.
The cascade function does not modify any destination information; it uses the
information defined by the routing and defaulted from the shipment.
If a given shipment line has multiple distributions and the default routing for that line
is direct receipt, the cascade process explodes the line and allocates the quantity
available on the shipment line to the component distributions based on the supply
available for the distribution. If you have over distributed a given line, Purchasing
allocates all remaining supply for the shipment to the last distribution. If you have over
delivered the transactions with prior receipts or transactions, then the process may fill
the lines with undesired values, but you can reallocate in this situation once the cascade
process is complete.
Record validation is disabled during the cascade process to facilitate the running of the
process, but all lines are validated when you save them. Quantities are applied to lines
in the expectation that you will transact the line as the default routing intended.
However, you can manually override these values.
Express Receipts and Receiving Transactions
The express function is a quick method of entering receipts and receiving transactions.
Receiving 9-23
This function is available in the Receipts window if you have specified or inferred a
source in the Find Expected Receipts window. (The source would be inferred if you
entered, for example, a purchase order number.) In the Receiving Transactions window,
the express function is available for deliveries regardless of your search criteria in the
Find Receiving Transactions window. Performing any manual action in a line disables
the Express button, and it is not enabled until you have again selected the Find button.
When you select the Express button in the Receipts window, Purchasing displays the
Express Details window in which you must enter the destination: Final Destination or
Receiving location. Note that this action is dependent on the profile RCV: Allow
Routing Override. When you select the OK button in the Express Details window, all
lines are selected and the Express button changes to Unexpress. When you select the
Express button in the Receiving Transactions window, all lines are selected and the
Express button changes to Unexpress. In either case, you can select the Unexpress
button to return to manual mode. Otherwise, you can deselect lines to omit them from
express processing and then save your work to initiate express processing.
•
You cannot perform data collection using Oracle Quality when you
select the Express button in the Receiving Transactions window.
See: Receiving Transactions, page 9-39.
•
Express receiving does not support entering Descriptive Flexfield
segment values.
The express processor performs validation and rejects lines based on the following
criteria:
•
the item revision/subinventory/locator is required and not obtainable as a default
from the item definition and the destination is Final
•
the early/late receipt date tolerance is exceeded and the exception control is Reject
•
lot/serial information is required
•
ship-to location is not available and the destination is Receiving
•
location is not available for Expense destination type and the destination is Final
Destination
•
purchase order supplier and receipt header supplier do not match
•
other receipts are pending for the specified shipment
When validation processing is complete, Purchasing displays a dialog telling you how
many lines passed validation and how many failed and are still available to receive
manually.
9-24 Oracle Purchasing User's Guide
Related Topics
Entering Express Receipts, page 9-25
Entering Express Receipts
Use the Receipts window to enter express receipts.
To find source documents:
1.
Navigate to the Find Expected Receipts window.
2.
Enter search criteria to find the source documents for which you want to enter
express receipts. You must include the supplier or organization in the source
criteria.
3.
Select the Find button to display the Receipts window with line(s) available for
receipt displayed in the Lines tabbed region.
To enter express receipts:
1.
Select the Express button to open the Express Details window.
2.
Select the Destination Type: Final Destination or Receiving location.
3.
Select the OK button. This changes the Express button to Unexpress and selects all
the lines for express receipt.
4.
Optionally deselect individual lines to omit them from the express receipt.
5.
Save your work to begin express receipt validation processing.
Related Topics
Express Receipts and Receiving Transactions, page 9-23
Finding Expected Receipts, page 9-25
Entering Receipt Lines, page 9-30
Finding Expected Receipts
Use the Find Expected Receipts window to find source documents for which you can
enter receipts. Use the Supplier and Internal tabbed region to search for Purchasing
documents. If Order Management is installed, use the Customer tabbed region to search
for customer return material authorizations (RMAs).
To find expected receipts in the Supplier and Internal tabbed region:
1.
Navigate to the Find Expected Receipts window by selecting Receipts from the
menu.
Receiving 9-25
2.
Select the Supplier and Internal tabbed region.
3.
Select the Operating Unit for this search.
4.
Specify any of the following, optional search criteria:
•
Select the receipt Source Type for the search:
Internal: An internal order generated from an internal requisition and sourced
from your inventory, or an intransit inventory shipment. If you choose this
option, the following fields are disabled: PO Number, Release, Line, Shipment,
and Include Closed POs.
Supplier: A purchase order sourced from a supplier. If you choose this option,
the Requisition Number and requisition Line number fields are disabled.
All: Internal- and supplier-sourced documents.
•
For a Supplier source type, enter the Purchase Order number. To be available, a
purchase order must have at least one approved shipment for which the ship-to
organization is the same as the current active organization. If you enter a
purchase order number, you can also enter a Release number, Line number,
and/or Shipment number for the purchase order. The Release field is applicable
9-26 Oracle Purchasing User's Guide
only when you have entered a purchase order number associated with a
planned purchase order or a blanket purchase agreement. The list of values in
the Release field includes all releases for the specified purchase order that are
not final closed.
•
For an Internal source type, enter the Requisition Number. If you enter a
requisition number, you can also enter a Line number. Available lines are those
with the same ship-to organization as the current active organization.
•
In the second Shipment field, enter the shipment number of the Advance
Shipment Notice (ASN). See: Advanced Shipment Notices (ASNs), page 9-15.
•
Enter the Supplier. For Source Type Internal, this is the organization. For Source
Type Supplier, this is the supplier name, and you can also enter the Supplier
Site.
•
Select Include Closed POs to include soft closed purchase orders in the search.
By not checking Include Closed POs, you exclude purchase orders that have a
status of Closed or Closed for Receiving.
•
Enter the Receiving Location.
•
Use the lower tabbed regions to further restrict the search.
See: To further restrict the search, page 9-28.
5.
Select the Find button to initiate the search and display the selected source
documents in the Receipts window. Purchasing first opens the Receipt Header
window.
To find expected returns in the Customer tabbed region:
1.
Select the Customer tabbed region in the Find Expected Receipts window.
This region is used for finding items that a customer has returned to your company.
When a sales representative creates a sales order in Order Management and ships
the item to the customer, you can find and create receipts if the customer returns
the item. You create the receipt against a return material authorization (RMA)
document, which the sales representative uses to authorize the return.
2.
Specify any of the following, optional search criteria:
•
Line type, such as Return with Receipt of Goods, on the RMA. There are
different return line types. Search by RMA line type if you want to see all RMA
lines with that line type in your receiving organization.
•
RMA Number, which corresponds to the Order Number field on the sales order
•
Line number from the RMA
Receiving 9-27
3.
•
Customer returning the item
•
Customer Number
•
Customer Item Number that the customer used to order the item
•
The lower tabbed regions. See: To further restrict the search, page 9-28.
Select the Find button to initiate the search and display the selected source
documents in the Receipts window.
To further restrict the search:
1.
Specify any of the following, optional search criteria:
•
In the Item region, you can enter the following search criteria: Item number,
Revision number, Category, item Description, and Supplier Item Number. Since
the supplier item number is generally the best way you can identify purchase
order lines when your supplier does not reference your purchase order number
on its shipping documents, you should provide a supplier item number on your
purchase order lines.
•
In the Date Ranges region, you can select Due Today to limit the search to
receipt lines due on the current date. Otherwise, you can enter a Due By date
range. These dates correspond to the Promised Date (or Need-by Date if there is
no Promised Date) on the Purchasing document or to the Promise Date (or
Request Date if there is no Promise Date) on the RMA.
•
In the Shipment region, you can enter the Container, Truck Number, or Bar
Code Label indicated on an Advance Shipment Notice (ASN). See: Advance
Shipment Notices (ASNs), page 9-15.
•
In the Destination region, you can select the Requestor, Project, Kanban Card,
Task, Deliver-to location, or Job. Using these fields will limit your search results
at the distribution level of the order.
To enter unordered receipts:
•
Select the Unordered button to open the Receipt Header window to enter
unordered receipts. See: Entering Unordered Receipts, page 9-36.
To remove existing search criteria:
•
Select the Clear button in any of the source document search windows to remove
existing search criteria.
Related Topics
Entering Receipt Header Information, page 9-29
Return Material Authorizations (RMAs), page 9-13
9-28 Oracle Purchasing User's Guide
Entering Receipt Header Information
Use the Receipt Header window to enter header information for all types of receipts.
Note: If you are entering a receipt against an Advance Shipment Notice
(ASN), the header information may already be entered for you if the
supplier sending the ASN provided that information. See: Advanced
Shipment Notices (ASNs), page 9-15.
To enter receipt header information:
1.
Navigate to the Receipt Header window. Purchasing opens this window when you
select Find or Unordered in the Find Expected Receipts window. You can also get to
this window by selecting the Header button in the Receipts window.
2.
Enter the Receipt number. If automatic receipt numbering is enabled, this field is
not enterable when you are creating a new receipt. Purchasing displays the receipt
number if the shipment has been partially received.
3.
Enter the Receipt date.
4.
Enter the Shipment number.
5.
Enter the Shipped Date.
6.
Enter the Packing Slip number.
7.
Enter the Waybill/Airbill number.
8.
Enter the Freight Carrier. See: Defining Freight Carriers, Oracle Shipping Execution
Guide
Note: Only the active freight carriers are displayed.
Receiving 9-29
9.
Enter the Bill of Lading.
10. Enter the number of Containers.
11. Enter the Received By person.
12. Enter the Supplier or Customer. For supplier-sourced shipments, this is the
supplier. For inventory-sourced shipments, this is the organization. If the field says
Customer, this is the customer returning an item ordered from your company.
13. Enter Comments.
14. Navigate to the Receipts window.
To add lines to an existing receipt:
•
Select the Add To Receipt button to open a list of values showing the receipts to
which you can add lines. When you select the receipt to add to, Purchasing displays
values from that receipt in the remaining header fields. You can also change the
date when the action is Add To Receipt.
Related Topics
Entering Receipt Lines, page 9-30
Entering Receipt Lines
Use this window to enter receipt line information.
To enter receipt line information:
1.
Purchasing opens the Receipts window and displays all shipments that meet the
search criteria when you choose the Find button in the Find Expected Receipts
window. See: Finding Expected Receipts, page 9-25.
9-30 Oracle Purchasing User's Guide
In the lower part of the screen, Purchasing displays the following detail information
for the current shipment line: Order Type, Order number, the Supplier or internal
organization shipping the item or the Customer returning the item, Due Date, Item
Description, Hazard class, Destination, UN Number, Header Receiver Note (from
order document header), Shipment Receiver Note, and Routing.
2.
Select the line you want to receive.
If the line you select contains information in the ASN Type field, then an Advance
Shipment Notice (ASN) exists for that shipment. (You can set an ASN Control
option in the Receiving Options window to prevent you from receiving against a
purchase order shipment for which an ASN exists. See: Defining Receiving Options,
page 1-41.)
If a material shortage exists for the item, a message appears. Displaying shortage
messages for certain items is a setup option. From the message, you can view
details of where in your organization the demand exists for the item. You can then
make the item available with a high priority. See: Viewing Potential Shortages,
Oracle Inventory User's Guide. See: Material Shortage Alerts and Shortage
Notifications, Oracle Inventory User's Guide.
3.
Purchasing displays the Quantity due for the shipment. If you change the unit of
measure, the receipt quantity is adjusted to reflect the new unit of measure. You can
override this value if you are recording a partial receipt or an over-receipt.
Depending on your receiving options, Purchasing either ignores over-receipts,
displays a warning message when you try to receive more items than you ordered,
or prevents you from receiving quantities over your receipt tolerance. If you specify
blind receiving at the system option level, Purchasing neither performs over-receipt
Receiving 9-31
checking nor displays a Quantity To Receive. If you have fully received a shipment,
the receipt quantity displayed is zero, but over-receipt checking will reveal whether
you have exceeded the over-receipt tolerance on this shipment.
The information described above applies to an ASN line as well as a purchase order
shipment line.
The quantity received on the corresponding purchase order or return material
authorization (RMA) is updated to reflect the received quantity.
4.
Enter the UOM of the item you are receiving.
5.
Enter the Destination Type: Receiving, Expense, Inventory, or Shop Floor. This
determines the final destination of the received items.
You can change the Destination Type if the profile option RCV: Allow Routing
Override is set to Yes.
6.
If the item is under revision control, you must enter a Revision.
7.
Enter the receiving Location.
8.
Enter the Requestor.
9.
For the Inventory destination type, enter the Subinventory into which the goods
will be delivered.
10. When the destination type is Inventory and when the item and/or the subinventory
have locator control enabled, enter the stock Locator.
11. Optionally choose or change the Country of Origin.
The Country of Origin is the country in which an item is manufactured. The
Country of Origin defaults from the ASN if there is one. Otherwise, it defaults from
the purchase order shipment.
12. If Oracle Process Manufacturing (OPM) has been implemented, you are a process
manufacturing user, and the selected receiving organization is a process
organization, then the process fields are enabled. The two process fields are
Secondary UOM and Secondary Quantity.
See: Entering OPM process fields, page 3-56.
Note: If your organization uses Skip Lot controls, the receipt routing
may be automatically changed from inspection required to standard.
To enter receipt line detail information:
1.
Navigate to the Details tabbed region.
9-32 Oracle Purchasing User's Guide
2.
Enter the Packing Slip number.
3.
Enter the Supplier Lot number.
4.
Enter the transaction Reason Code. See: Defining Transaction Reasons, Oracle
Inventory User's Guide.
5.
Enter any comments.
6.
Select Receipt Exception if you want to enter a release exception for this receipt.
To modify exchange rate information:
1.
Navigate to the Currency tabbed region.
You can update exchange rate information on the receipt only if you perform
invoice-to-receipt matching (an Invoice Match Option of Receipt is chosen for the
shipment in the purchase order Shipments window).
These fields are blank and disabled if there is no exchange rate-that is, if the
purchase order is not in a foreign currency.
2.
Modify the Rate Date.
If the Invoice Match Option on the purchase order shipment is Purchase Order, the
default is the purchase order creation date, and you cannot change it. If the Invoice
Match Option is Receipt, the default is today's date. You can change the Rate Date
to one that better captures the cost of the item at the appropriate exchange rate. For
example, if you are creating a receipt for an item that was actually received into
inventory a few days earlier, you could enter the earlier date to apply the rate from
that day. You can enter a different Rate Date for different receipt lines. For User rate
types, changing the Rate Date does not affect the Rate.
Once you complete the receipt transaction, you cannot correct this exchange rate
information later.
3.
If the Rate Type is User and the profile option PO: Allow Rate Override for User Rate
Type is set to Yes, optionally modify the Rate.
The Rate defaults from the purchase order.
Note: The Currency and the Rate Type also default from the
purchase order, but cannot be changed.
To view order information:
•
Navigate to the Order Information tabbed region to view the following information
for the shipment: Order Type, Number, Release number, order Line number,
Shipment number, Project, Task, Kanban Card Number, Charge Account, Supplier,
Quantity Ordered, UOM, Due Date, Supplier Item number, Customer Item number,
Manufacturer Name, and Source Inspected.
Receiving 9-33
To view outside processing information:
•
Navigate to the Outside Services tabbed region to view the Job or repetitive
Schedule number, the repetitive schedule Line number, the Operation Sequence,
and the Department number.
To view shipment (ASN) information:
•
Navigate to the Shipment Information tabbed region to view information from the
Advance Shipment Notice (ASN), if one exists for the shipment. See: Advance
Shipment Notices (ASNs), page 9-15.
To enter control number information:
•
For controlled items, you can select the Lot-Serial button to navigate to the Lot
Number and Serial Number windows. See: Lot Control, Oracle Inventory User's
Guide. See: Serial Number Control, Oracle Inventory User's Guide.
To cascade quantities across shipments and distributions:
•
If you specified a Supplier and Item in the Find Expected Receipts window, and if
Allow Cascade Transactions is selected in the Receiving Options window, choose
the Cascade button. See: Cascading Receipts and Receiving Transactions, page 9-23.
To perform an express receipt:
•
Select the Express button to perform an express receipt. See: Entering Express
Receipts, page 9-25.
Related Topics
Entering Receipt Header Information, page 9-29
Cascading Receipts and Receiving Transactions, page 9-23
Express Receipts and Receiving Transactions, page 9-23
Entering Express Rec