:Introduction This Document intended to illustrate Step By Step Setup Steps for R12 Oracle Sourcing.

Table of Content:
1- About Oracle Sourcing. 2- EBS Application Implementation and Integration for Oracle Sourcing. 3- Implementing Oracle Sourcing.

About Oracle Sourcing

in Oracle R12 the P2P Cycle covers the entire process of product or service procurement to the final payment

Requisitions Negotiations & Awards Purchase Orders

Catalog Content Management



Supplier Management Supplier Performance Payment

P2P Phases:
The different phases of P2P life cycle involves: - Souring. • Create and Manage Negotiations ( RFx, Auctions). • Supplier Management. • Contract Negotiations and Awards. • Catalog Content Management. - Ordering. • Requisition and Purchase Order generation. • Purchase order management and fulfillments. • Payment. - Reporting. - Analysis.

About Sourcing
Oracle Sourcing Offers Flexible negotiations capabilities for both buyers and sellers, enabling them to efficiently obtain the best price for goods and services. Prices are established based on actual supply and demand at the time negotiation is transacted. The following are the available Negotiation types (Document Types) in oracle sourcing: RFI: Request for Information used to qualify supplier and their goods or services. RFQ: enables Buyers to collect quotes for complex and hard defined goods or services. Auctions: enables buyers to solicit Bids for goods and services that are clearly defined. With oracle sourcing organizations can: 1- Source more for there spends. 2- Source for lowest total cost. 3- Create immediate and long-term saving.

EBS Application Implementation and Integration for Oracle Sourcing.

Setup personnel. Define buyers. Define organizations and organizations relationship.The following setup steps are the steps needed to be implemented in other Oracle E-business Suite Applications. Setup Calendar. Open inventory and purchasing accounting periods. convert to Multi. Define categories. Define purchasing options.Org. Optional Setup Steps: Setup Oracle workflow. These steps are required for Oracle Sourcing to run. Define Payment Terms. Define human resource key flexfields. Required Setup Steps: Setup system administrator. Setup accounting flexfields. Define Lookups Codes. Define Inventory Key flexfields. Define Fright Carriers. Implementing Oracle Sourcing Setup Profile Options: Profile PO: Allow Autocreation of Oracle Sourcing Documents Value Yes . Define UOM. Define locations. currencies. Define financial options. Define receiving options. and set of book.

PO: Display the Auto created Document PON: Enable Sourcing Award Approval PON: Supplier Transaction History Time Period PON: Automatically Default Catalog Attributes PON:External Application Framework Agent Yes Yes Number indecaic ts period of day in All URL will be used for the links in notifications sent to suppliers. Yes URL used to construct the link to supplier registration page as well as the external abstract page POA: DBI Implementation POS: External URL Self-Service Accessibility Features Sourcing Default Responsibility for External User Sourcing Supplier .

Creating Application User and Assign responsibility Navigation Path: System Administrator (R)  Security  User  Define.Assigning Sourcing Responsibility: Create Employee Navigation Path: HRMS ( R)  Pepole Enter and maintain. . last name and e-mail address. When creating user profile make sure that each user profile contains the first name.

Defining Buyer Security ( Optional) to enable buyers security: 1. .run the replicate seeded data program.

As soon as the program has been run. Private. Oracle sourcing will use the security levels of public as the default for all sourcing documents. To change the security levels perform the following steps: Navigation Path: 1.Click update for the document type used by Oracle Sourcing (Sourcing Buyer Auction. Sourcing RFQ. . or Hierarchy) from the security Level drop down menu.Select the appropriate operating unit and click GO.Purchasing ( R)  Setup Purchasing  Document Type 2.Select the new security level (Public. Sourcing RFI) 4. 3.

Query PON%GROUPS. This will returns the two Looks: PON_HEADER_ATTRIBUTE_GROUPS PON_LINE_ATTRIBUTE_GROUPS. Steps: 1.Click Apply to add the new security Level. Set Up Attribute Groups and Requirement Sections Navigation Path: Application Developer ( R)  Applications  Looks  Application Object Library.5. .

Set Up Negotiations Configuration Setting the default ranking display 1. Specifying visibility in blind auctions and RFQs: .Navigate to Sourcing Super User ( R) Negotiation Home page Administration Tab Negation Setup Section  Negotiation Configuration URL To choose a ranking indicator Select the rank form the Rank Indicators which is displayed to negotiation creators and respondents throughout the negotiation process To allow creator to override the rank values check the allow box.

you can allow them to see the response rankings by selecting the appropriate checkbox. However. Allowing award approval to be required: You can choose to have award decisions approved before a purchase order can be generated . Select the appropriate value from the Cost Factors menu.supplier must respond to the price breaks but can also modify the buyer's price break values. Identifying allowable cost factor types: Cost factors identify additional costs that should be included when calculating total cost for a line. • Optional .Participants in blind auctions/RFQs are typically restricted from viewing Information on other participant's responses. Specifying default price break types: Buyers have three choices when creating their negotiation: • None . Select the type form the Price Breaks section.suppliers must respond to the price breaks and cannot modify them. This will existing and affect future blind auctions and RFQs. • Required .no price breaks are defined.

Instead. As such. they normally refer to services such as training or consulting. and you can define a default maximum score value On the Negotiations Configuration page. select a group from the list of predefined groups. You can choose to allow buyers to weight scores when evaluating supplier responses. Header Scoring Defaults Section selects the appropriate check boxes and enters appropriate values. Defining the default line attribute group Attributes defined to a negotiation line or attribute list must be assigned to an attribute group.based lines typically are not negotiated by unit. there is no unit of measure associated with them. Attribute groups allow control over how attributes are displayed since you can specify the sequence of the attributes within the group On the Negotiations Configuration page. .Defining header scoring defaults: You can define defaults for header Requirement scores. Defining the default UOM for amount-based line types: Amount.

To require suppliers to respond in a new round of a negotiation with a lower price. you can choose to force the suppliers to respond in the new round with a price that is lower than the price they offered in the prior round. 2. It does not have to be the supplier's official name) and the URL to the provider's site. Buyers can use these links to access and browse the supplier web sites from the Add Supplier page during negotiation creation 1-Scroll to the Supplier Discovery section of the Negotiations Configuration page. 3-To allow your buyers to view and use . select the checkbox. Listing URLs for supplier discovery: You can define a list of URLs that carry information about suppliers' external web sites. The entries available from this menu can be defined in Oracle Purchasing.Enter the Provider Name (this is the name used within the system.In the Unit of Measure for Amount Based Line Items section. Enforcing response levels in multi-round negotiations When taking a negotiation to a subsequent round of responding. select the value from the menu to be used as the default.

1. To set the processing and error message thresholds. You can control access to different sites by selecting and deselecting the Enabled flag. . Also enter the number of seconds that should elapse before the page is refreshed during the last hour of the negotiation Specify concurrent processing values: Large negotiations can sometimes have hundreds or thousands of lines. Processing such negotiations can be time consuming and resource intensive. click Enabled. 2-Enter a number for the Supplier Online Window value. Specifying the supplier online window values: The Live Console feature allows buyers to monitor negotiations in real time. enter values in the appropriate fields.On the Negotiations Configuration page. scroll to the Supplier Online Window section.the link. This is the number of minutes that can elapse since a supplier's last action before that supplier is considered to be no longer active.

click the Administration tab.Subscribe to Notifications The Notification Subscription home page consists of two sections: Bury Notification Section." 3. click "Notification Subscription. On the Administration page. select which notifications apply to which negotiation types. . 2. Supplier Notification Section To select appropriate notifications: 1. From the Negotiations Home page. On the Notification Subscription page.

click the Administration tab. Click Apply. Use the Setup Negotiation Terms and Conditions page to define the terms and conditions that you want to display on negotiations. . Click Setup Negotiation Terms and Conditions. 3. On the Negotiations Home page.4. If multiple languages are installed. select a Language and translate the terms and conditions for each language if your suppliers use other languages. 2. Define Negotiation Terms and Conditions Negotiation terms and conditions are presented to supplier users before they respond to a negotiation for the first time To define negotiation terms and conditions: 1.

On the Negotiations Home page. enter a List Name and brief Description for your attribute list. 2. click Apply. To create line attribute lists: 1. click the Administration tab. 4. When you have finished entering your negotiation terms and conditions. an Inactive list will . On the Administration page. An Active list can be used immediately. Choose the Status (Active or Inactive). click Create Line Attribute List.4." 3. On the Create Line Attribute List page. click "Reusable Attribute Lists. On the Reusable Attribute Lists page. Define Reusable Attribute Lists Reusable Attributes are Attributes identify additional details that a supplier should provide (beyond just response price) when responding to a negotiation line.

you specify a numeric or date range (to define a single number or date. . set the From and To values to the same number or date). (suppliers must enter responses if the attribute has an Attribute Type value of Required). you must specify the values you will accept for this attribute and assign a score to each value. On the Enter Scoring Criteria page. you specify a list of acceptable values. Note that URL attribute types can not be scored in this manner. click the Score icon. but will not be available for use unless you edit the list and change its status to Active.be stored in the system. If this attribute is required and you wish to assign values to allowable entries and scores. For number and date attributes. For text attributes. 6. Scoring the attribute allows you to define which values you will accept for the attribute and indicate the relative desirability of each response. Click the pop-up calendar icon to select a date value. Scores are also used by the system to determine the best response in MultiAttribute Scoring negotiations. Buyers can identify acceptable responses to line attributes and provide a score for each response that indicates the desirability of that response value.

3. .the higher the number. Use the instructions above to specify the sequence of attributes. After you have identified and scored your values. click Apply. Add and score any remaining attributes for this list. click Add 5 Rows to display five more entry rows. 9. Modify the attribute numbers to reflect the new sequence. You are returned to the Create Line Attribute List page with the attribute sequence modified accordingly. click Apply. 7. On the Sequence Attributes page. 8. Note that you can optionally sequence the display order of your line attributes. You return to the Create Line Attribute List page. When you are finished defining attributes to this list. the more desirable that response. you must define a score for each value (or range of values). If you need to add and score more than five values. Specify a number that represents the desirability of that value . Sequencing line attributes: The line attributes appear in the order you define them.Once you have identified all the allowable values for this attribute. 4. When finished. However you can alter the order if needed. the line attributes appear in the order in which you defined them and are given a number. 10. To define the order of line attributes: 1. 2. click Apply. Click Sequence.

Define Reusable Requirement Lists You define Requirements to solicit high-level information about the suppliers who have responded to your negotiation. in the Add drop down menu. 1. Defining your Requirement List To define your Requirement list: 1. 2. On the Create Requirement List page." 3. Enter a name for your new section. Defining Requirements You create collections of Requirements called Sections. 2. . click the Administration tab. accept the default. Click Add Section 3. To begin defining your Requirements: 1. You are provided with a default section called Requirements. Enter a descriptions for your list. select the entry for the default section called Requirements. In the Requirements area of the Create Requirement List page. To add a new section. New Section. 3. From the Negotiations Home page. Click "Reusable Requirement Lists. 4. Select a status for your list (Inactive lists cannot be used). Enter a name for your Requirement List 2.

If an internal Requirement is weighted. If you are ready to begin adding individual Requirements for this section. enter your Requirement question in the text box provided 7. You cannot create a section within a section. Display only Requirements merely notify suppliers of additional aspects in which buyers are interested. but the supplier cannot enter a response to it. • Internal Internal Requirement can only be seen by buyers. click Apply and Add Section.On the Create Requirement List: Add Requirement page. Values can be: • Display Only The Requirement is displayed to the supplier. the supplier sees no information on the internal Requirement . if a Requirement is internal and has a weight of 10. If you need to create a section after this section. For example. 6. the total weight value seen by the supplier will not add up to 100. set the Properties for this Requirement as necessary: • Type Type describes how the Requirement is used within the negotiation. Display Target is set to Yes and Scoring Method is automatically set to None. If the type is display-only. Once you have defined your Requirement text.5. click Apply and Add Requirement.

To define acceptable values: 1. those values are displayed to the responder. Date (the format you or the supplier select as your date preference). • Display to Supplier Indicate whether you want suppliers to see your Target value. Values with a URL type display as links. • Scoring Method Select the method by which you wish to score responses to this Requirement. you must define the allowable values (or value ranges) and the score for each. • Manual . • Required Suppliers must respond to this Requirement.The system will assign a score based on scoring information you define. Value Type also governs the characters you can enter in the Target field. Internal Requirements have Display Target set to No. If unweighted.and sees the sum of all weighted Requirements as 90. new internal Requirements can be added if they are given a weight of zero or if their weight amount is subtracted from another internal Requirements. .Responses can not be scored. https://. • Value Type Select the type of characters suppliers can enter for this Requirement when responding: Text (letters/words. If you define acceptable response values for text type Requirements. http://. and ftp://. • None . If weighted. new internal Requirements can be added while the negotiation is in progress. Click the Add 5 Rows button under Acceptable Values. • Optional Suppliers do not have to respond to this Requirement. • Target Enter a target value for the Requirement (for example: 30 or more years in business) . You can define which response values (or range of values) are acceptable for this Requirement. 8. If you choose Automatic. for example a Web site address entered as a Text type will display simply as text). who must select a value from the predefined list of values.evaluators will enter scores for a particular response manually when scoring a participant's response. Number (digits with decimals allowed). • Automatic . digits). or URL (Web site addresses that begin with a valid URL protocol for example.

enter the number in both the From and the To fields. to define a range. enter the beginning value in the From field and the ending value in the To field.2. The values you enter should reflect the Value Type (text. date) you specified for this Requirement. you can enter specific numbers/dates or you can define ranges of numbers/dates. If you wish to define a single value. You may enter as many separate values as is necessary to identify all possible acceptable responses. Otherwise. number. Enter values for the following fields: • Response Value Enter an acceptable value for this Requirement. • Value From/Value To (number and date type Requirements only) If your Requirement has a value type of number or date . .

a fixed amount for each unit of the line. Steps: 1.Define Cost Factors and Cost Factor Lists Cost factors allow you to identify and negotiate on additional costs related to a line. • The name of the new price factor. You can define: a fixed amount for the line." 3. On the Negotiations Home page. or a percentage amount of the line cost. enter the following information: • A unique code . or internal costs such as switching costs. Such costs could include additional costs such as consulting or training. click the Administration tab. Click "Cost Factors. click Create. You can use cost factors to obtain a more realistic idea of the total cost of an item or service by factoring in any additional costs beyond just price. 4. On the Cost Factors page. • A pricing basis value to determine how this price factor is calculated. • A short text description for the price factor. 2. On the Create Cost Factor page. .

you are prompted to enter a different one. click Apply. Repeat as necessary to add any remaining price factors to the list. click "Create Cost Factor List. To define a cost factor list: 1. Active lists can be used immediately. select a price factor for this list and click Add to List.5. From the Price Factor drop down list. If your code is not unique." 4. On the Reusable Cost Factor Lists page. Inactive lists cannot be used 5. ." 3. Once you have entered your information. 2. On the Create Cost Factor List page. enter the following information: • Name of the new list • A short text description of the new list • The status of the new list. The information you entered is validated. click the Administration tab. Click "Reusable Cost Factor Lists. On the Negotiations Home page.

Click Add Suppliers. Buyers can create their own private lists that are available only to them.6. click the Administration tab." 3. Click "Reusable Invitation Lists. 2. enter a list name. you no longer need a list. On the Reusable Invitation Lists page. you can deactivate it. description. The lists you create are immediately available for use. . All buyers can view and use Public lists. When you are finished adding cost factors. at some time in the future. click Apply. On the Create Invitation List page. and select an Access type. On the Negotiations Home page. Define Reusable Invitation Lists Using an invitation list can help standardize your business practice by ensuring that all appropriate people are invited to targeted negotiations and can help streamline the negotiation process. If. 4. click Create Invitation List. Buyers can add invitation list(s) when creating a new negotiation To create a new invitation list: 1.

" 3. Click Apply to return to the Create Invitation List page. On the Negotiation Styles page. click the Administration tab. ensure there is a value for Supplier Contact field. Define Negotiation Styles." 4. Use the instructions in the previous steps to continue adding suppliers. For each supplier. you can enter that in the Additional Contact Email field. 7. Click "Negotiation Styles. Note that you can use the advanced supplier search features to build lists of suppliers based on the commodities or items they provide. 2. . click "Create Negotiation Style. From the Negotiations Home page. To define a Negotiation style: 1. select the supplier(s) you want to add to the list and click Add to Invitation List. 8.5. If you wish to send a notification to an additional supplier contact and you know the contact's e-mail address. You see that the suppliers appear in the Invitation List box in the upper right-hand corner of the page. On the Create Negotiation Style page. This is especially useful if the supplier has set up a broadcast e-mail. You return to the Create Invitation List page. Search for and select suppliers to add to your invitation list. When the Search Suppliers page displays the search results. 6.

• Select the features that are available from the style. item attribute lists. • Accept the default status of Active (Inactive status styles are not available for use).• Give your style a name. or invitation lists). Sourcing Super Users can create public templates that are available for use . • Identify which document types this style can be used with. • Optionally give your style a description. auction). click Apply. you can create templates for each negotiation type (RFI. RFQ. • When you are finished. Define Negotiation Templates If your negotiations use many of the same elements (bid/quote controls.

RFQ. click the Negotiations tab.by all Sourcing Buyers.Auctions. On the Templates page. On the Step 1: Create Template Header page. 2.RFI. click "Create New Template. In the Templates column of the Quick Links section. On the Negotiations Home page.) To create a negotiation template: 1. Continue by using the instructions in the online help describing how to define templates. (Sourcing Super Users and Sourcing Buyers can both create their own private templates that only they can use." 4. The available type in the column for which we can create a template are . Be sure to accept the default Access value of Public. click the link for the type of negotiation template you wish to create. . 5. . . 3. give your template a name and optionally a description.

The forms that are created with Oracle Sourcing typically are modeled after the third . and the open and close date. An abstract can even contain a PDF version of the negotiation for the supplier to download. Abstracts are presented to suppliers on the buying organization's external website.Create Abstracts and Forms Abstracts An abstract is a summary or synopsis of a negotiation. this information is captured in an XML file that can be transferred to a third party system. Forms A form captures information from the buyer in a similar fashion as an abstract but rather than publishing data to the buying organization's website. It usually contains information such as the goods or services being purchased. Suppliers can view the details about negotiations and determine if they are interested in participating without having to log in to the sourcing application. whom to contact for more information.

4. (Super User) Update form as requirements change. click "Abstract and Forms. Using Abstracts and Forms: Oracle Sourcing is seeded with a draft abstract and two forms. (Buyer) Add Abstract to negotiation and complete required information. General Steps to Using the Abstract Feature: 1. decide that you want to capture different information than what the abstract or the forms are seeded with. (Super User) Set up and customize external website. On the Abstract and Forms page. To capture new information. (Super User) Create a new form or modify an existing form. These are the building blocks that are used to create a form or abstract. Creating Abstracts and Forms Abstracts and forms are composed of fields and sections. From the Negotiations Home page. 4. Creating New Sections/Fields 1. you can create new sections and/or fields and use them in your abstract and forms definition. however. When creating a form or abstract. (Super User) Activate the form. (Super User) Create any new fields or sections (building blocks) desired on the Abstract. 3. click the Administration tab. (Super User) Map to third-party XSD/DTD file 6. General Steps to Using the Forms Feature: 1. You may. (Super User) Create fields and sections. (Buyer) Complete the form and generate XML. 2. . The Abstract and Forms page displays the abstract and the forms that exist in the system (initially you should see only one abstract and two forms that are seeded with the application). 4. (Super User) Modify and activate the existing Abstract definition. 7. The buyer can then generate the appropriately formatted XML file and send it for publishing on the third party system. 2. click Manage Sections and Fields. (Super User) Add any new fields or sections on the form." 3.party systems so that the data collected matches their requirements. (Buyer) Publish the Abstract for a specific negotiation to an external website. On the Administration page. first create these building blocks in the application. 3. 2. 5. 5. You can then use these building blocks to construct your form or abstract.

user-defined value that uniquely identifies the field. This is an optional field that is presented to the buyer as a tip if Data is entered. This specifies the type of data value the buyer can enter in the field. Creating New Fields 1. to facilitate easy mapping. or click Create Field to define a new field. • List of Values. You can use this to enter any additional information that you Feel the buyer needs to have to correctly complete this field. click Create Section to define a new section. date/time. enter values for the following fields: • Code. this value should match the code from the XSD/DTD to which you will be mapping. The Field code and only be up to 30 characters and can only have alphanumeric characters (Underscores are allowed within the code). If this field will be used on a form. number. The . This value will appear next to the entry field/poplist/List of Values on the form that will be presented to the buyer. date. user-defined value that will be associated withthe field. On the Create Field page. and amount. On the Manage Sections and Fields page.5. • Value Type. To limit the field's data input to only a predefined set of values. • Name. Possible data types are: text. This is a required. Enter a value that is meaningful to the buyer. • Description. This is a required field. click the flashlight and select the Value Set.

user-defined value that will be associated with the section. . this value should match the code from the XSD/DTD to which you will be mapping. While the field is draft status. you can no longer delete the field. Also. You can also delete the field. On the Create Section page. A required. If this section will be used on a form. Once you change the status to Active. 2.flashlight will query all value sets that are defined for Oracle Sourcing. you can edit the Code Name and other properties of the field. and Active. The following types of value sets are supported: • Table • Independent • Translatable independent • Status. the values in this poplist will be Draft (selected). To create a new value set. • Name. You will only be allowed to make the field inactive. Only active fields can be added to a section or form. user-defined value that uniquely identifies the section. When you initially enter the page. you can no longer modify the Code of the Value Type. enter values for the following fields: • Code. click Apply Creating New Sections 1. This value appears above the section when the form is presented to the buyer. This is a display only field that is updated when a new version of the section is created. • Version. The section code can only be up to 20 characters and can only have alphanumeric characters (Underscores are allowed within the code). click on the Manage Value Sets button at the top of the page. Once you have finished defining your new field. You can also create a value set on the Administration page (see the section below for instructions on creating value sets). A required. for ease of mapping.

the values in this poplist are Draft (selected). you can edit Code. 3. Once you change the status to active. • Section Contains repeating Data. If the section contains repeating data. Click Update for any Sourcing document type (Buyer Auction. or form. Once you have added all the fields and/or sections to the section. Navigate to the Document Types page. It is not displayed to the buyer. To add a field to the section.Enter a value that is meaningful to the buyer. specify whether it requires a response from the supplier. Set Up > Purchasing > Document Types. Search for and select the field or section you wish to add (you can add a section within a section). Name. click Add another Row. • Description. click Apply. After you have added the field or section. When you initially enter the page. Log into Oracle Purchasing as a Purchasing Super User. You can only make the section inactive 2. 3. While the section is in draft status. You can also delete the section. you can no longer delete the section. Click the flashlight icon. This text is presented to the buyer as a tip below the section header. and Active. Repeating sections are displayed to the buyer as a table. RFQ. section. Set Up Document Print Layouts To Assign Layout Templates: 1. Identifies this section as a repeating section. 5. • Text Tip. RFI). A required field used to describe the section. 4. you can no longer modify Code or make the section repeating. • Status. . 2. Use this to give specific instructions to the buyer for this section. and other properties of the section. Also. no system fields can be defined to it. Only active sections can be added to an abstract.

. (If you have Oracle Procurement Contracts licensed and installed. For each document type.4. also select a Contract Terms lay . select a Document Type Layout.

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