Chemfab Alkalis Limited

Business Process Mapping

Oracle R 12.1.3 Purchase Order To Be Mapping
Author

: R Vinodh Kumar & R Selvaraj

Creation Date

: 07-Dec-2013

Last Updated

: 07-Dec-2013

Control Number : Pur/V.01

Document Control

Revision Details

Date
07-Dec2013

Author
Vinodhkumar R &
Selvaraj R

Versio
n

Change Reference

Draft
1.0

Distribution

S.No
.

Name

Department

Position

1.

Material
Management
Material
Management

VP MM

2.

Mr.BalaSubramania
nV
Mr. Sarfudeen J S

3.

Mr. Rajaram S

Material
Management

Dy.
Manager

4.

Mr. Dheerajkumar S

Material
Management

Dy.
Manager

5.

Mr. Ramasamy M V

Material
Management

Officer

Signature

Sr.
Manager

Date

Document Table Contents

BRS.No.

Process Description

Page
Number

1.

P-01: Purchasing Process flow Indent from User Department to Stock Delivered to
Inventory

2.

P-02: Purchase Indent Process

10

3.

P-03: Purchase Indent Approval Process

12

4.

P-04: Purchase Order Approval Process

13

5.

P-05: Purchase Order Amendment

16

6.

Annexure Points

18

P-01: Purchasing Process flow Indent from User Department to Stock

Delivered to Inventory

BRS
ID

BRS Proc
Name

PO01A

Purchase
Indent

(Annexure AN
No 3)

(Annexure AN
No 5)

BRS Description

Oracle Fitment (To-Be)

Material Indent Process

Purchase Requisition Process

1.Indent Receipt
User department Process engineer
raise the Indent. Indent will forward to
Head of the department and Plant head
approval. After approval only Purchase
department will process the Indent.

The following few indent types

1. Repair and Maintenance
2. AMC
3. Cash purchase
4. Consumables
2.Confirmation from Stores
Purchase users get confirmation from
stores regarding available stock.

3 A. If the Purchase is new then:

Stock not available in Stores and New
item requirement or new groups of
vendor the following process will starts
by purchase department.
3.B Purchase user request the quotation
from vendors (RFQ)

Purchase Responsibility has the Purchase

requisition form.
Purchase requisition number based on
the operating unit wise.
Purchase requisition status
1. In complete New Req and User
allows making changes.
2. In process Requestor forwarded to
next approver and restricted to
change the Req.
3. Approved - RFQ or PO will raised
against the Approved status
Requisitions.

Types of Indent details will be captured in

Purchase requisition Header Descriptive Flex
field like
1. Repair and Maintenance
2. AMC
3. Cash purchase
4. Consumables

Purchase department check the pending

purchase requisition and status in
Purchase Requisition summary form.

Purchase user check the stock availability

through On Hand Availability form.
Purchase Requisition for AMC & Service raised
through Item Category wise.

3. C. Purchase department collect the

quotation with Material Technical and
Quality specification and terms. Based on
the details prepare the Price comparison
chart.

3. D. Price negotiation based on the

price comparison chart

Purchase Requisition need to be short closed by

manually by User/Purchase
If the Purchase is new then
Request for Quotation (RFQ)
Purchase user select the appropriate
Approved requisition and convert as a
Request for Quotation (RFQ) through
Auto Create Form.
Based on types of Indent two types of RFQ
is applied while creating RFQ:
a. Bid
b. Standard
a. Bid -Repair & Maintenance, Raw Material,
Cash, Others, Work Indent, Capital,
Consumables. Bid RFQ Will convert to Bid
quotation and Standard purchase order
b. Standard - AMC (Annual Maintenance
Contract). Standard RFQ will convert to
Standard quotation and Blanket Purchase
agreement and releases

(Annexure AN
No-6 )

3. E. Department and activity wise

Budget defined and at the time or
purchase order preparation system
checking the availability of the fund.
3. F. Purchase department prepare the
Purchase Proposal and that will be
approved by purchase head. Before
approving the PO internal audit
department verify the supporting
documents
6

Quotation Entry
Purchase user collects the quotation from
supplier and enters in Quotation entry
form with Rate, Taxes Functional and
Quality/Technical specification, Terms and
conditions.
Quote Analysis
Purchase user collected and entered the
quotation details, They will analysis the
rate, term and specification details through
Quotation analysis Localized form
Quote analysis data can convert as Price

Purchase value Upto Rs. 1 Lakh,

Purchase head and Finance head
approved the purchase.
Purchase value exceeds Rs. 1 Lakh
will goes for Chairman approval.

3. G. Purchase department user raises

the purchase order and Purchase/
Finance head approves the order.
4. If the Purchase is existing
then:
4.A Based on the existing purchases or
purchase agreement purchase
department prepare the Purchase
Proposal Approval
4. B. Department and activity wise
Budget defined and at the time or
purchase order preparation system
checking the availability of the fund.
4. C Purchase department prepare the
Purchase Proposal and that will be
approved by purchase head. Before
approving the PO internal audit
department verify the supporting
documents
Purchase value Upto Rs. 1 Lakh,
Purchase head and Finance head
approved the purchase.
Purchase value exceeds Rs. 1 Lakh
7

comparison document. If user wants in price

comparison existing document format that will
be customized Report
Budget Check
Purchase encumbrance enable for Capex
(Capital Expenses) items at purchase order
approval level.

Budget will create against the Account

code combination. Account code
combination based on department and
activities wise.

Before send to approver Funds Check

option available. User knows the current
available funds through this function.

If insufficient fund, Budget to be extended

or purchase order value to be reduced
otherwise purchase order status will be
changed as Rejected

GAP
Purchase Encumbrance fulfill the requirement if
the material is capital / Expenses type i.e Non
inventory items based on the Account code
combinations. If inventory items it is difficult to
achieve in oracle standard functionality.
Purchase Proposal document data available. If
user needs the details in existing format.
Document will be Customized Report.
Proposal approval will be sent to VPM manually.
If the Purchase type is Standard then
Standard Purchase Order is created

will goes for Chairman approval.

(Annexure AN
No-7)

5. Receipt Process.
Vendor sends the material
against the PO. Vehicle number
and material details in Gate
entry register.
If Weighment applicable vehicle
moved to Weighbridge for first
weight.
Request sends to quality
person to collect the sample.
After analysis QA gives the
result.
Quality result is accepted.
Stock will be updated in
inventory
Quality result is rejected.
Material return back to Vendor.
6. Cancellation / Short Close of
Purchase orders

a. Approved Quotation is converted to Standard

Purchase Order through Copy Document
process.
b. Approval is based on Position Hierarchy that
is pre defined in the system.
If the Purchase type is Blanket then
Blanket Purchase Agreement is created
a. Approved quotation is converted to Blanket
Purchase Agreement. It includes approved
supplier, effectively date, value etc
Blanket Purchase agreement is approved
through Position Hierarchy
Blanket Release against the Blanket Purchase
agreement No is created.
Proposal approval will be sent to VPM manually.
Create Standard Purchase
Releases

Order/Blanket

Purchase Requisition is Auto Created to

Purchase Order. Taxes/Tax Category is to be
applied from Masters.
Purchase Order creation Process
Purchase Order is created by different Processes:
a. Purchase
RequisitionRFQQuotePurchase Order
b. Purchase RequisitionPurchase Order
c. Manual Purchase Order
Approve Standard Purchase
Order/Blanket Releases
PO can be approved only if the Budget is
8

available. If there is shortage in Budget then

proposal is to be sent for approval manually.
Budget is then added in system
Internal Audit is included in Position Hierarchy
7. Import purchase orders.
Same procedure followed for
Import purchase orders.

VPM is included in Position Hierarchy for all

order approval
VPF is included in Position Hierarchy for above 1
Lakh

Purchase orders in foreign

currency.

Clearing and forwarding charges

applicable.

Inspection details will be captured in Quality

module.

Custom duty and related taxes

based on the Bill Of Entry.

Duty and Additional import related

recoverable taxes will not include
in item cost.

a. Return to Vendor Process is done in the

system to send the Rejected Qty back to
Supplier.
b. When Supplier sends Replacement it is
captured as receipt process.

Receipt is created in system with Qty.

Non recoverable taxes will added

in Item cost.

Accepted Qty of Items are delivered to the

destination Sub inventory
Cancellation of Purchase Orders can be done in
system. Further Receipt cannot be entered
against the Purchase Order after cancellation.
Import Purchase Order Process
Purchase order raise with foreign currency.

Currency conversion rate will be fixed by

corporate level. Currency conversion rate
based on the daily currency rate.

At the time of purchase order preparation

8. Service purchase orders.

Purchase order raise for service
with and without material.

user can selects the Corporate or User

defined rate. User selects corporate, rate
will be captured from GL module.

User defined or spot rate will entered by

purchase user.

Item cost calculation purpose, Import

related duties and taxes attached with
purchase order.

Exact will duty and taxes available in Bill of

entry. But purchase order preparation time
buyer does not know the appropriate
taxes. So they can attach the adhoh tax
category.

At the time of purchase receipt Inventory

user have the bills of entry copy. They can
enter the appropriate Duty and other
taxes.

Service purchase orders

Blanket Purchase agreement can raise for
AMC. Purchase user release the Blanket
release whenever required.
Service order raise with materials. Service
related taxes attached for Service line.
Purchase order receipt against the service
line, related expenses account will hit.
Excise or other taxes will attach with
material line and after receipt against the
material stock will be added in inventory.
Service purchase orders
10

Salt Penalty Charges due to the change in the

standard specification of CAL salt

P-02: Purchase Indent Process

Indent Creation Process:

11

BRS ID

PO-02A

BRS Proc
Name

Indent
Creation

BRS Description

Oracle Fitment (To Be)

Creation of Indent by department users

Types of Indent
a. Repair & Maintenance
b. Work Indent
c. AMC
d. Consumables
e. Cash
f. Others
g. Capital
h. Raw Material

Creation of Purchase Requisition by Process,

Maintenance and Project department users
System Entered:
Purchase Requisition DFF have option to
select the appropriate Indent type
a. Repair & Maintenance
b. Work Indent
c. AMC
d. Consumables
e. Cash
f. Others
g. Capital
h. Raw Material
User department will be captured in
Purchase Requisition DFF like
Maintenance, Instrumentation, Lab, R &
D.
Purchase requisition approval hierarchy
available. User department user enters the
request and forward to department head.
Department head check the Purchase
requisition and approve or reject or alter the
request qty.
Purchase indent based on the Production
and sales Plan.
Raw material and Production ingredient
requirement decided based on the
Production and sales plan.

12

P-03: Purchase Indent Approval Process

BRS ID
PO-03A

BRS Proc Name

BRS Description

Engineer/Dy. Manager

a. Raise the Indent and

forward to the next
level for
13

Oracle Fitment (To Be)

a. Create Purchase
Requisition. Approve
and Forward to

authorization
Department HOD
b. Approve the indent
after verifying stock
& consumption
pattern and hard
copy of the indent
send to Plant Head.
Plant Head
c. Plant Head will
approve the indent
manually in the hard
copy

P-04: Purchase Order Approval Process

14

Department HOD.
b. Approve and Forward
to Plant Head. Option
available to accept or
reject or reassign to
another approver.
c. Approve the Purchase
Requisition in System

BRS ID

BRS Proc
Name

PO-4A

Purchase Officer

BRS Description
a. Prepare/Create Purchase Order
15

Oracle Fitment (To Be)

a. Create Purchase Order. Approve

and Forward to Sr. Manager

b. Prepare/Create Purchase Order

b. Create Purchase Order. Approve

and Forward to Sr. Manager

c. Check the PO prepared by Purchase

Officer & Dy. Manager

c. If Sr. Manager approves then

notification goes to Internal
Audit. If rejects then notification
goes to concerned Buyers for
any changes/cancellation.

d. Check the correctness of PO in line with

the indent, negotiated price & terms and
advice suitably in case of any deviation.

d. If Internal Audit approves then

notification goes to VP Material.
If rejects then notification goes
to concerned Buyers for any
changes/cancellation.

Dy. Manager
Sr. Manager

Internal Audit
e. Can approve the PO value upto Rs 1 Lakh
after internal audit. If PO value is more
than 1 Lakh proposal is to be send to
Chairman for procurement approval.
VP Material
VP Finance
Chairman

f.

Can approve the PO value upto Rs 1 Lakh

after internal audit. If PO value is more
than 1 Lakh proposal is to be sending to
Chairman for procurement approval.

g. Can Approve for Unlimited value

e. If the PO value is upto Rs 1 Lakh

VP Material and VP finance both
should be approved.
1. VP Material approve and
forward to VP Finance for
approval
f.

If PO value is more than 1 lakh

pre approval to be obtained from
Chairman.

g. After approval of PO by VPMaterial, PO is forwarded to VP

Finance through Hard copy/email.

16

17

P-05: Purchase Order Amendment

BRS
ID

BRS Proc Name

BRS Description
a. If the Qty is excess then Purchase communicates to
concerned department. If the department accepts
for excess qty then Purchase accepts the qty with
amendment. If the department rejects the excess
qty then Purchase returns the material to supplier.

PO5A

Receipt Excess/Less
Qty
b. If the Qty is excess/less w.r.to Invoice then MDN is
created stating the shortage of qty. If the qty is
pending w.r.to PO then Purchase follow up with
supplier to receive the shortage qty.
a. Amendment PO shall be released based on budget
approval for additional Qty. As per existing CES,
Amendment PO cannot be released without budget
approval. If there is no budget / any short fall, fresh
budget approval has to be obtained for releasing
the POs
a. Based on indent from user for the excess qty,
amendment issued to the respective Purchase
Order manually

PO5B

Oracle Fitment (To Be)

a. Create Purchase
Order.
Approve and
Forward to Sr.
Manager
b. If the Receipt Qty is
excess then Purchase
communicates to
User manually.
c. If the User accepts
the excess qty then
Purchase creates
Revision in the PO
a. If the partial qty is
not required then Qty
in PO line is cancelled
b. If the partial qty is
required then
purchase follow up
with supplier to
receive pending qty

Budget Approval
b. Similarly, If the ordered qty is not required and
cancelled, necessary amendment issued to the
respective PO to reverse the budget.
a. Prepare, forward, follow up and get back
amendment purchase orders after internal audit.
b. After preparation of PO, the same is forwarded to
18

a. During Approval
stage Budget is
checked
automatically. If there
is insufficient Budget
then Budget is
approved manually.
After manual
approval the Budget

internal audit after checked by Sr.Manager. Follow

up and get back purchase orders after internal
audit
PO5C

Create Purchase
Order
(Annexure AN No233)

c. After getting signature from VPM / VPF, PO

released to suppliers & accounts. One copy of PO
to be kept in file with back papers.

a. Purchase Requisition
will be created for
the excess qty,
revision will be done
for existing PO.

a. In case of any rejection due to non compliance of

specification, loss /damage / shortage, MDN is
prepared and communicated to suppliers for
replacement. Follow up with stores for sending
back the rejected materials and arranging for
replacement.

b. If the ordered qty is

not required then the
entire PO is cancelled
and Budget will be
revised.

a. Amendment Order is given for variance in Tax

structure, Delivery & commercial terms
PO5D

Create Amendment
Purchase Order
(Annexure AN No-6 )

PO5E

Rejection &
Replacement

is added in system.

a. Amendment PO is short closed in the system

manually due to non supply, item is not required
and short supply (eg. 1000 Kgs of MS Angle
ordered and supplied Qty 992 Kgs. Then the
balance 8 kgs short closed in the system).
Similarly, If the ordered qty is not required /
cancelled / Short closed the respective PO to
reverse the budget amount partially or fully.

a. Revised Purchase
Order is Approved &
Forwarded to next
level through Position
Hierarchy
b. If Need by Date
(Delivery Date) is
changed in the PO reapproval is required.
c. Then revised PO is
released to suppliers.

Amendment.
PO5F
PO5G

a. If the receipt
excess/same qty is
rejected, then Return
to Vendor Process is
done to return the
material back to

Cancellation / short
Closing of Purchase
Order

19

supplier.
a. Any change in
Tax/delivery details it
will be modified in
Receipt
a. PO is cancelled for a
particular line qty for
non supply/short
supply/item is not
required and Budget
will be revised.
b. If PO Quantity is
revised get the new
PR for the Excess
Quantity, but there is
no link between the
PO with PR.
c. If new PR link is
required Create new
PO against the excess
quantity.

20

Annexure Points
S No.

AN
No.

Business Process

RICE Type

Yearly budget demand

Not Feasible

Not Feasible

Monthly break up
demand
From various department
--> Purchase requisition
--> Indent + Approval
(Verify stock & approve)
Gross material
requirement --> Stock
verification --> Net
demand
RFQ - 3 vendors - Vendor
comparison --> PO
Proposal --> Approval
PO Generation /
Authorization / Release
--> PO Amendment with
Authorization
Material receipt -->
Inward inspection Acceptance / rejection
--> Accepted material

Standard

Solution

a. Purchase Requisition is created by users of

different department.
b. Personalisation to be done for Purchase to view
stock while creating PO
a. Gross material requirement is viewed in
Requisition Summary
b. Stock verification Report to check the On hand
c. Net demand is arrived manually

Standard

Standard
a. Indent to PO Conversion with Quote process
Standard

a. PO Creation & Approval through Position

Hierarchy
b. PO Revision & Re Approval

Standard

a. Receipt, Inspection & Deliver process is

performed in system
b. Rejected material is sent back to Supplier
through Return to Vendor Process.
21

move to Stores
8

Indent based tracking till

Material receipt for all
items all qty. To decide
with management on
Reservation for specific
indent department -wise.
Indent -purchase
monitoring-status

Reports

Requisition summary and Receiving transaction

summary have the detail. Based on the data custom
report develop

Reports
Standard

11

Vendor Creation /
registration process
Vendor rating

Indent related Purchase order and receipt against po

details available. Custom report can develop based on
the user requirement.
Supplier master function used to create

10

10

11
12

12

Import PO

Standard

13

13

PO Amendment with
History (Archive)

Standard

14

14

Work Order

Standard

15

15

MRP - Relevant for Raw

chemicals (15 nos)

Standard

16

137

Daily salt receipt

Reports

17

211

AMC calls made report

Reports

18

125

Roles and responsibility

centres to be available.

Standard

19

228

Blanket PO - Release PO

Standard

20

229

PO Requisition stage need to know about

stock, open PO qty,
pending indent qty-to be

Reports

Reports

Vendor rating related details available in Purchasing,

Inventory quality module. Custom report can develop
against the user requirement.
Oracle standard functionality fulfils the Import
purchase order requirements and already explained in
this document.
History is being maintained for whatever amendment
is being done in PO
No MRP planning at CAL. PO Requisitions should be
generated through Re-Order planning method. Users
will convert this requisition to Purchase Order.
Daily salt details available in Material transaction and
receiving transaction summary screen.
System administrator responsibility defines the Roles
and related responsibilities against the user.
Blanket purchase order explained in flow chart. AMC
related purchase process user can use the Blanket
purchase agreement and releases.
On hand availability function can attach with purchase
user responsibility. Purchase order summary screen
user can get the data to selecting the supplier, status,
item and etc. Purchase requisition summary screen
22

displayed
21

22

231

232

Item Category

PO/PR Sequence for

multiple types

have the pending requisition details.

Standard
Purchase Requisition and Purchase order header DFF
have the types of purchase order and department
details.

Standard

23

233

Amending PO

Standard

Purchase order amendment process explained with

flowchart

24

New

Salt Penalty Report

Standard

Manual Debit Note for deviation in Salt specification

23