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As the name goes P2P stands for procure to pay. The basic reason why a company or an organization goes for procurement is in order to fulfill the requirements of further inventory or raw materials. Being more specific in terms of Oracle language the purpose of going for procurement is to cater to the demands or shortage of goods in the warehouse or stock.
STEP 1 : The procedure followed in the procurement process is a very straight forward one. As mentioned earlier procurement is done in order to cater the demands of further inventory when the order is given or the need is felt. So once the demand is created a request is generated to go for purchase and this process is known as REQUISITION which is the first step in this P2P cycle. On a broader perspective requisition is of two types viz. Internal Requisition Purchases Internal requisition is done at a time within the organizations when any of the other departments has surplus of stock and is willing as well as is in a position of giving some part of the stock to other department. Purchase requisition is an external process where the requisition is done to a separate supplier outside the organization and is asked for delivering the required stock.
Returned :A buyer rejected the requisition. Rejected :The approver rejected the requisition. Choose the Requisition Type: Purchase Requisition – The requisition lines are usually satisfied from an outside supplier by means of a purchase order. by selecting the New button in the Find Requisitions and requisitions summary windows. Enter a unique Requisition number. If automatic requisition number generation is active. or by selecting the Requisitions button in the Order Pad of the Supplier Item Catalog. the cursor does not enter this field and the number is generated when you save your work 3. Total :The currency code and the base currency total amount of all lines in this requisition.1. The upper part of the Requisitions window has the following display–only fields: Preparer– Your employee name from the Application User window. Navigate to the Requisitions window from the menu. 2. Status– The requisition status: Incomplete : The requisition is incomplete. . Purchasing returns to the preparer all requisition lines within the same requisition that are not on a purchase order. or the preparer has not yet submitted the requisition to an approver.
You begin in the Accounts tabbed region. Choose the Documents tabbed region in the Navigator to later access the requisition more quickly. 4. Multiple distribution quantities must total to the requisition line quantity. Navigate to the Distributions window by selecting the Distributions button in the Requisitions window. You can mix inventory and supplier sourced requisition lines in the same requisition of either document type. Purchasing displays the quantity you have not yet assigned to an Accounting Flexfield. If you want to charge one Accounting Flexfield for . To take approval actions: After completing a requisition. Click OK to reverse the the funds reservation on this document.Internal Requisition – The requisition lines are usually satisfied from inventory by means of an internal sales order. you can easily distribute costs across distributions using percentages. Enter the Quantity (Amount. 2. select the Catalog button to open the Supplier Item Catalog. Select Unreserve from the Tools menu. To check funds: Select Check Funds on the Tools menu. For instance. Using decimal quantities in this field. 3. To open the Supplier Item Catalog: With the cursor in a requisition line row. To enter requisition preferences: Select Preferences on the Tools menu to open the Requisition Preferences window. Check Use Document GL Date to Unreserve to use the document’s distribution GL dates for the funds reversal instead of the unreserve date. you can have a simple quantity of one (1) on your requisition line. Enter the Unreserve Date. To reaccess a requisition quickly: Choose Place on Navigator from the Action menu. if using Oracle Services Procurement) you want to distribute. The quantity must be in decimal format. When you enter requisition lines you can source them independently of the document type. To unreserve funds: If budgetary controls are enabled you can unreserve funds. select the Approval button to open the Approve Documents window. 1.
7 as the respective quantities for the requisition distribution lines. you cannot create or update these accounts manually. If the requisition line destination type is Expense. When you enter a Charge Account. however. simply enter . STEP 2: .3 and . Purchasing also creates the following account for each distribution: • Budget: the encumbrance budget account The Account Generator creates these accounts based on predefined rules. With one exception. you can change the default charge account supplied by the Account Generator. 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.30% of the cost of the item and another Accounting Flexfield for 70% of the cost of the item.
) You can also define your own RFQ or quotation types using the Document Types window. a Bid would be used for a large or expensive piece of equipment that you’ve never ordered before. you can also specify effectivity dates for individual price breaks. fixed quantity. A Standard quotation or RFQ also includes price breaks at different quantity levels. For example. location. fixed quantity. Standard Bids or Tenders Catalogs Bid:Used for a specific. location. (For a Bid. but use a Standard quotation or RFQ for a special type of pen you don’t order very often. and date. you cannot specify effectivity dates at the shipment level. Standard:Used for items you’ll need only once or not very often. but not necessarily for a specific. you can define effectivity dates at the header level. For example.Once the requisition is done the organization is required to send RFQ or Request for Quotations to the supplier. For all three types. Manually enter RFQ: . You cannot specify price breaks for a Bid quotation or RFQ. A Catalog quotation or RFQ also includes price breaks at different quantity levels. you could use a Catalog quotation or RFQ for office supplies. Basically speaking RFQs are of three types viz. For Catalog and Standard quotations. or for an item that incurs transportation or other special costs. Catalog:Used for high–volume items or items for which your supplier sends you information regularly. and date.
enter one of the document names defined for RFQs. Enter a unique number for the RFQ. Enter the Ship–To and Bill–To locations for the items on the RFQ. The list of values lists the Document Type (Document Name) and Quotation Class from the Document Types window. Use the Status field to control the status of the RFQ: In Process – The initial status when you create the RFQ. For existing RFQs. .Navigate to the RFQs window by selecting RFQs from the menu. you can choose whether RFQ numbers are numeric or alphanumeric and whether Purchasing automatically generates them when you save your changes. In the Type field.Purchasing displays today’s date as the Created date and the functional Currency from your set of books. the list of values includes only RFQs with the same Quotation Class. In the Purchasing Options window.
Enter the Due Date when you want your suppliers to reply. Enter RFQ lines in the Lines tabbed region Entering RFQ Supplier Information • Use the RFQ Suppliers window to: . Purchasing deletes all follow up notifications associated with it. Only Active RFQs are printed. telephone. When you close an RFQ. Purchasing displays your name as the Buyer. Enter the Close Date for the RFQ. Select Require Quote Approval to enforce approval of any quotation referencing this RFQ before the quotation can be used for a purchase order. 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 notifies you if the current date is between the RFQ reply due date and the close date and if the RFQ is Active. or FAX. Printed – The status assigned to the RFQ when you have printed at least one copy of it. The buyer you enter receives all notifications regarding this RFQ. You must change the status to Active if you want to reprint the RFQ. Enter the Reply/Receive Via code for the method you want the supplier to use to send the quotation. For example. by mail. Enter the beginning and ending Effectivity Dates for the supplier quotation. Purchasing prints the reply due date on the RFQ. Purchasing warns you when you enter a quotation against this RFQ after the close date. Purchasing knows that a supplier replied to an RFQ if you enter a quotation for this supplier referencing the RFQ. You can forward the RFQ to another buyer by choosing the name of this buyer from the list of values. Closed – Choose this status to close the RFQ when all suppliers have responded or when you no longer want responses.Active – Choose this status when the RFQ is complete and you are ready to send it to your suppliers. Purchasing prints the close date on the RFQ.
• 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. You can provide multiple price breaks if you want to receive quotations from your suppliers for different terms. Attention: Use this window to request as many price breaks as you want. ship–to locations. Entering RFQ Price Break Information Use the RFQ Price Breaks window to enter pricing information for RFQs. • Review the supplier activity. or quantities Autocreating RFQ from Requisition .
manually enter quotation . Standard Bids or Tenders Catalogs This process is known as QUOTE ANALYSIS. At this point as mentioned earlier as per the type of RFQ again three types of quotations are received i.STEP 3: After receiving the quotations from different suppliers all the quotations are compared among them and the best feasible option among them is considered for final order.e.
Purchasing uses the default terms. conditions.Navigate to the Quotations window by selecting Quotations from the menu. Purchasing displays a warning message but permits your entry. In the Purchasing Options window. If you change the supplier or supplier site information on this quotation after you enter an RFQ number. . Purchasing verifies the supplier and supplier site you provide and lets you choose from a corresponding list of RFQs. Enter the supplier Site for this quotation. enter one of the document names defined for quotations. When you enter a supplier name. and currency information for this supplier site in the Quotation Terms and Currency windows. you need to provide this RFQ number to indicate to Purchasing that the supplier responded. When you enter a supplier site. If you copied this quotation from an existing RFQ. you need to modify the RFQ supplier list first. Purchasing uses the default terms. You do not need to provide a supplier site for a quotation. If you enter the number of an RFQ for which you already entered a response for this supplier and supplier site. number. the list of values includes only quotations with the same Quotation Class. You can also manually provide an RFQ number. Purchasing displays the functional Currency from your set of books. conditions. and VAT number. 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. For existing quotations. which you can override. and currency information for this supplier in the Quotation Terms and Currency windows. The list of values lists the Document Type (Document Name) and Quotation Class from the Document Types window. Purchasing removes the RFQ number. Enter the Supplier for this quotation. and you must re–enter it. Enter a unique number for the quotation. In the Type field. The list of values displays the supplier name. Purchasing displays the corresponding RFQ number. Attention: If you are entering a quotation that is a response to an RFQ you previously sent to the supplier. you can choose whether quotation numbers are numeric or alphanumeric and whether Purchasing automatically generates them when you save your changes. Tax ID number.
you provide an expiration date for it. Purchasing sends you notifications that the quotation is awaiting completion. You cannot use Closed quotation information on purchase orders. The buyer you enter receives all notifications regarding this quotation. Purchasing displays your name as the Buyer. Active – Choose this status when the quotation is complete and you are ready to approve it. Only Active quotations can be approved. To create a quotation from an RFQ. the status of your quotation is still Active. Quotations you receive in response to an RFQ usually match the format of your RFQ.Enter a supplier Contact for this quotation. The Response Date is the date you actually received the quotation. open the original RFQ and choose Copy Document from the Tools menu. Copying Quotations from RFQs Use the Copy Documents window to create quotations directly from RFQs. You can forward the quotation to another buyer by choosing the name of this buyer from the list of values. You can copy the complete RFQ or part of it to your quotation. Enter the Supplier Quote number. You can then edit the quotation to provide detailed quotation line . You can manually close the quotation to acknowledge the notification. but you can change this date. Closed – When you enter a quotation. Enter the beginning and ending Effective Dates for the quotation. Use the Status field to control the status of the quotation: In Process – The initial status when you create the quotation. If you do not acknowledge the notification by closing the quotation. Enter quotation lines in the Lines tabbed region. Purchasing defaults today’s date as the response date. Purchasing sends you a notification when the quotation approaches expiration using the warning delay you provided in the quotation header. Select Approval Required to indicate that approval is required to purchase goods based on this quotation. Enter the Ship–To and Bill–To locations for the items on the quotation.
Even these Pos are of three types which includes are as follows Standard Planned BPA or Blanket Purchase Agreement CPA or Control Purchase Agreement . STEP 4: After quote analysis the best option is thought of and thus after deciding that the Purchase Order or PO is generated. Project and task information. if any.information. is carried from an RFQ when you copy a quotation from it.
estimated costs. and estimated cost. Blanket Purchase Agreement. If you use encumbrance accounting. if you enter Regular PO in the Document Name field for the Standard Purchase Order type. Standard Purchase Orders: You generally create standard purchase orders for one–time purchase of various items. . the purchase order may be encumbered since the required information is known. You can issue scheduled releases against a planned purchase order to place the actual orders. You must specify tentative delivery schedules and all details for goods or services that you want to buy. quantities. quantities. you can use the planned purchase order to reserve funds for long term agreements. For example. You create standard purchase orders when you know the details of the goods or services you require. and Contract Purchase Agreement. Planned Purchase Order. delivery schedules.including charge account. and Contract Purchase Agreement. You can use the Document Name field in the Document Types window to change the names of these documents. 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. and accounting distributions. If you use encumbrance accounting. Blanket Purchase Agreement. your choices in the Type field in the Purchase Orders window will be Regular Purchase Order. Planned Purchase Orders: A planned purchase order is a long–term agreement committing to buy items or services from a single source. Planned Purchase Order.Purchasing provides the following purchase order types: Standard Purchase Order.
you can encumber each release. then execute and manage those agreements in one central shared environment. You can encumber funds for a global agreement. 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. and you can encumber these purchase orders if you use encumbrance accounting. You can later issue standard purchase orders referencing your contracts. but you do not yet know the detail of your delivery schedules. If you use encumbrance accounting. business by business. You can encumber funds for a blanket purchase agreement. • Blanket purchase agreements can be created for a single organization or to be shared by different business units of your organization (global agreements). . buyers can negotiate enterprise-wide pricing.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. Enterprise organizations can then access the agreement to create purchase orders that leverage pre-negotiated prices and terms. 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. Using global agreements (a special type of blanket purchase agreement). • You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them. • 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).
Standard Purchase Orders: STEP 5: After generating the Purchase Order or PO as per the type the PO is discharged and the supplier sends the goods. Consequently the supplier discharges the goods and the goods are received at this point of time.Global Contract Agreements You can use global contract agreements (a special type of contract purchase agreement) to centralize a supplier relationship. It is in this stage that the operation of the inventory module starts. Buyers throughout the enterprise can then leverage this relationship by referencing this global contract agreement in your standard purchase orders. .
The default is the system date. Note: Purchasing displays a P–Card number if the purchase order used one. Procurement cards can be used for items with a Destination Type of Expense. This field displays if the profile option PO: Use P–Cards in Purchasing is set to Yes. If the Enforce Buyer Name option in the Purchasing Options window is set to Yes. you can enter the name of any buyer. but you can change this. When you select a purchase order. and Currency for that order. for documents that do not contain a Project number. The list of values displays all blanket and planned purchase order numbers that have been approved. A procurement card purchase order is created from a iProcurement requisition that used a corporate credit card for the purchase. the document type. Purchasing displays the Supplier. and you cannot change this value. Enter the PO number for the release you want to create. You can change the release number to any number that does not already exist. buyer. and effectivity date range (global agreements are not available for releases).1Navigate to the Releases window by selecting Releases from the menu or selecting the New Release button in the Find Purchase Orders window. . supplier. status. Only the last four digits of the procurement card are displayed. your name is displayed as the Buyer. Otherwise. Purchasing displays the next Release number available. and for standard purchase orders or releases only. Site. Enter the Created date. Enter release shipment line information in the Shipments tabbed region. Purchasing also displays the Status of the release and the current Total amount of the release.