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<Insert Picture Here> Oracle ASL-Sourcing And Advanced Pricing in Procurement Marwa Abd El Rahman (Technical Support Engineer) .

AGENDA • Presentation – approximately 45 minutes • Q&A Session – approximately 15 minutes  Web attendees can ask questions via Q&A panel only  Phone attendees can ask questions via Q&A panel or phone (operator assisted) .

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<Insert Picture Here> Oracle ASL-Sourcing And Advanced Pricing in Procurement Marwa Abd El Rahman (Technical Support Engineer) .

Agenda • • • • • • • • • Sourcing introduction Setup steps Demo for sourcing How to troubleshoot issues related to sourcing Advanced pricing introduction and its integration with oracle Purchasing Setup steps Demo for advanced pricing References Q/A .

Overview of Sourcing in Purchasing Requisitions Catalog content Management Purchase orders Ordering RFQs/ Quotations Sourcing Receiving Analysis Invoice/ Payment Supplier management Reporting Supplier performance .

Why do we use ASL-Sourcing ? • Automatically default supplier and pricing information onto Document Lines • Source the item from negotiated purchase agreements • Reduce manual intervention .

What is ASL and Sourcing Rule? Approved Supplier Lists Commodity Approved Supplier List Items Ship-to organization or global organizations Supplier site .

• they answer the question “where do I get part A from?” • User defines rankings and % allocation for replenishment sources in the form of Sourcing Rules. for any organization. . They describe sourcing supply.What is ASL and Sourcing ? (continue) • Sourcing rules define inventory replenishment method for either a single organization or all organizations in the enterprise.

What is ASL and Sourcing ? (continue) Gears Sourcing Rule Assignment Supplier Scheduling Supplier A 60 % Rank 1 Document Item GR100 Supplier B 40 % Rank 1 • Supplier A • Site • Contact .

What is ASL and Sourcing ? (continue) Assign sourcing Rules .

Products use Sourcing Rules Planning Purchasing Supplier Scheduling Supply Chain Planning .

Setup steps • • • • • • Define Item or category Define Supplier/Supplier Site Create Quote or Blanket Purchase agreement Define ASL Define Sourcing Rule Assign Sourcing Rule to Assignment Set .

Demonstration .

. item.APIs • Use Purchasing Document Open Interface process. • Import Price Catalog to import blanket purchase agreements or catalog quotations into Purchasing. and document information that the supplier sends. 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. You can import Global Approved Supplier List (ASL) through the Purchasing Document Open Interface (PDOI).

2) Is the Profile option MRP: Default Sourcing Assignment Set populated? 3) Is there an assignment for the item or category in the assignment set pointed by the profile option MRP: Default Sourcing Assignment Set? 4) Does the organization on the assignment set match to the destination organization on the requisition line or is the organization on the assignment set blank? 5) Does the organization on the Sourcing Rule match to the destination organization on the requisition line or is the Sourcing Rule defined as ‘All Orgs’? 6) Is the Sourcing Rule effective date current? . Sourcing rules and ASL records that are defined by category. is used only when item number on the requisition is populated and there is no sourcing rule and ASL defined for that item.Troubleshooting Details Problem : Supplier and Supplier site information are not Defaulting On the Purchasing Document Suggested actions: You need to check the followings: 1) Is the item number populated on the requisition? One-time items are not autosourced.

It will pick the most recent created BPA 2)Is there an approved Global BPA and the Global BPA is enabled in the requesting operating unit? 3)Is the sysdate inside source document effective date range? .Troubleshooting Details (Continue) Problem: Source document is not defaulting or the incorrect document has defaulted Suggested Actions You need to check the followings: 1) What is the Profile option Value set 'PO: Automatic Document Sourcing'? If set to Yes .

• Using Oracle Purchasing with Oracle Advanced Pricing allows buying organizations to create pricing rules and execute these rules during requisition and purchase order creation.Advanced Pricing Overview • Oracle Advanced Pricing is a flexible and extensible pricing engine that supports ebusiness applications by providing a variety of pricing models – from very simple to complex. .

Case Study • A Pancake Emporium purchases syrup from a Syrup Company. • Different volumes have different prices • Different grades have different prices • Purchasing agents are manually tracking the supplier prices due to the complex pricing. • Due to variety of reasons. . • The Accounts Payable group has recurring issues with invoice discrepancies between the purchase order and the invoice. the price on the purchase order could be incorrect.

Examples of Pricing scenarios that can be modeled in Oracle Advanced Pricing include: • Capturing the purchase price for a specific item.g 10% promotional discount on items offered by one of your suppliers for a given date range. • Supporting e. . • Pricing items based on user-defined attributes. such as the width or thickness of an item.

Pricing Engine Process • What is being Priced? • Who is asking for the price? (Qualifiers) • How is the base unit price going to be adjusted? (Modifiers) .

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. modifiers and formulas to model the most challenging pricing scenarios. while modifiers are used to create price adjustments. such as discounts and surcharges.What are Price Lists and Modifiers? • Advanced Pricing provides a powerful set of tools in the form of price lists. • Price lists allow enterprises to capture and maintain the purchase price of an item.

What is Formula ? • Formulas are mathematical expressions that let you define rules to dynamically determine the price on a transaction based on attribute values on the transaction. • For example we can instruct the pricing engine to calculate discount based on a formula attached to discount Line • Formulas can be linked to a price list line or a modifier line .

Formulas Types .

Static Calculation 1+2*3/4 Run Update formula prices concurrent program .

Dynamic Calculation Pricing Engine .

Setup Steps (Continue) • • • • • Item and/or Purchasing Category (required) Contract Agreement (required) Price List (optional) Modifier (optional) Approved Supplier (optional) .

Demonstration .

1).An Oracle White Paper (Doc ID 285470.An Oracle White Paper (Doc ID 394490.5.References 1) How To Diagnose Issues With Approved Supplier List And Sourcing Rules In Purchasing (Doc ID 557825. 2) ASL Sourcing to Requisitions Setup and Usage Guide (Doc ID 175935.1). 5) FAQ: Using Advanced Pricing in Purchase Orders and Requisitions (Doc ID 357657. A90830-04 . 4) ASL-Sourcing in Procurement . 3) Oracle Purchasing Integration with Oracle Advanced Pricing – Release 11.1) 6) Oracle Advanced Pricing User’s Guide Release 11i Part No.1).1).10 .

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1) Oracle Procurement News Current Edition (Doc ID 111111.1) MOS Community <Procurement Community> .1) Advisor Webcast Current Schedule (Doc ID 740966.Further Info & Help • • • • • Procurement Advisor Webcast Calendar (Doc ID 1083713.1) Advisor Webcast Archived Recordings (Doc ID 740964.

Start sharing your valuable experience with the Procurement Community .

Upcoming Webcast Purchasing & Costing Accounting Jan 2011 .

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