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11i Purchasing for End Users

Student Guide Volume 2

D16657GC10

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Edition 1.0
April 2003
D37960

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Copyright Oracle Corporation, 2003. All rights reserved.


This documentation contains proprietary information of Oracle Corporation. It is provided under a license agreement containing
restrictions on use and disclosure and is also protected by copyright law. Reverse engineering of the software is prohibited. If this
documentation is delivered to a U.S. Government Agency of the Department of Defense, then it is delivered with Restricted Rights
and the following legend is applicable:
Restricted Rights Legend
Use, duplication or disclosure by the Government is subject to restrictions for commercial computer software and shall be deemed
to be Restricted Rights software under Federal law, as set forth in subparagraph (c)(1)(ii) of DFARS 252.227-7013, Rights in
Technical Data and Computer Software (October 1988).
This material or any portion of it may not be copied in any form or by any means without the express prior written permission of the
Education Products group of Oracle Corporation. Any other copying is a violation of copyright law and may result in civil and/or
criminal penalties.
If this documentation is delivered to a U.S. Government Agency not within the Department of Defense, then it is delivered with
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The information in this document is subject to change without notice. If you find any problems in the documentation, please report
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Oracle Corporation does not warrant that this document is error-free.
Oracle and all references to Oracle Products are trademarks or registered trademarks of Oracle Corporation.
All other products or company names are used for identification purposes only, and may be trademarks of their respective owners.

Author
Paul Scott, Todd Round, Deanna McMillian
Technical Contributors and Reviewers
Terri North, Jim Ammons, Vic Mitchell, Rachel Korte, Shridhar Acharya

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This book was published using:

Table of Contents
Procure to Pay Purchasing Overview ............................................................................................................1-1
Procure to Pay Purchasing Overview ............................................................................................................1-2
Procure to Pay Lifecycle................................................................................................................................1-3
Objectives ......................................................................................................................................................1-4
Agenda...........................................................................................................................................................1-5
Overview of Purchasing Process ...................................................................................................................1-6
Overview of Requisitions ..............................................................................................................................1-8
Overview of Requisition to Order Document................................................................................................1-10
Overview of Purchase Order Process ............................................................................................................1-11
Overview of Receiving Process.....................................................................................................................1-13
Agenda...........................................................................................................................................................1-16
Overview of Purchasing Integration ..............................................................................................................1-17
Purchasing Integration with General Ledger .................................................................................................1-22
Purchasing Integration with Payables............................................................................................................1-23
Purchasing Integration with Cash Management ............................................................................................1-24
Purchasing Integration with Projects .............................................................................................................1-25
Purchasing Integration with ASCP/MRP ......................................................................................................1-26
Purchasing Integration with e-Commerce Gateway ......................................................................................1-27
Purchasing Integration with Human Resources.............................................................................................1-28
Purchasing Integration with Quality ..............................................................................................................1-29
Purchasing Integration with Inventory ..........................................................................................................1-30
Purchasing Integration with Alert..................................................................................................................1-31
Purchasing Integration with Workflow..........................................................................................................1-32
Purchasing Integration with iSupplier Portal.................................................................................................1-34
Purchasing Integration with Assets................................................................................................................1-36
Purchasing Integration with WIP...................................................................................................................1-37
Purchasing Integration with Order Management...........................................................................................1-38
Summary........................................................................................................................................................1-39

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Suppliers...........................................................................................................................................................2-1
Suppliers ........................................................................................................................................................2-2
Procure to Pay Lifecycle................................................................................................................................2-3
Objectives ......................................................................................................................................................2-4
Agenda...........................................................................................................................................................2-5
How Oracle Products Use Supplier Information ...........................................................................................2-6
Overview of Suppliers ...................................................................................................................................2-7
Flow of Default Values..................................................................................................................................2-8
Agenda...........................................................................................................................................................2-9
Supplier Record Structure..............................................................................................................................2-10
Entering Basic Supplier Header Information.................................................................................................2-11
Supplier Information - General Region .........................................................................................................2-13
Supplier Information - Classification Region ................................................................................................2-14
Supplier Information - Accounting Region ...................................................................................................2-16
Supplier Information - Control Region..........................................................................................................2-17
Supplier Information - Payment Region........................................................................................................2-19
Supplier Information - Bank Accounts Region .............................................................................................2-21
Supplier Information - EDI Region ...............................................................................................................2-22
Supplier Information - Invoice Tax Region...................................................................................................2-23
Supplier Information - Withholding Tax Region...........................................................................................2-24
Supplier Information - Tax Reporting Region...............................................................................................2-25
Supplier Information - Purchasing Region ....................................................................................................2-26
Supplier Information - Receiving Region......................................................................................................2-28
Supplier Site Settings.....................................................................................................................................2-30

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Supplier Level Versus Site Level Entry ........................................................................................................2-31


Entering Basic Supplier Site Information .....................................................................................................2-32
Supplier Site Information - General Region ..................................................................................................2-33
Supplier Site Information - Contacts Region.................................................................................................2-35
Supplier Site Information - Accounting Region ............................................................................................2-36
Supplier Site Information - EDI Region ........................................................................................................2-37
Supplier Site Information - Tax Reporting Region........................................................................................2-38
Supplier Site Information - Purchasing Region .............................................................................................2-39
Guided Demonstration - Create a New Employee (Required)...................................................................2-40
Guided Demonstration - Run the Fill Employee Hierarchy Process (Required) .......................................2-42
Guided Demonstration - Create a New Responsibility (Required)............................................................2-43
Guided Demonstration - Create a New User (Required) ...........................................................................2-45
Guided Demonstration - Add Notifications to your Personal Home Page (Required) ..............................2-47
Guided Demonstration - Set Yourself up as a Buyer (Required)...............................................................2-48
Guided Demonstration - Create a Supplier (Required)..............................................................................2-49
Practice - Define a Supplier .......................................................................................................................2-53
Solution - Define a Supplier ......................................................................................................................2-54
Practice - Adjust a Supplier Site ................................................................................................................2-62
Solution - Adjust a Supplier Site ...............................................................................................................2-63
Maintaining Supplier and Supplier Site Information.....................................................................................2-66
Avoiding Duplicate Suppliers........................................................................................................................2-67
Merging Suppliers .........................................................................................................................................2-69
Data Example - Supplier Merge ....................................................................................................................2-71
Merging Suppliers .........................................................................................................................................2-72
Agenda...........................................................................................................................................................2-73
Reports...........................................................................................................................................................2-74
Summary........................................................................................................................................................2-77
Locations, Organizations, Units of Measure and Items ...............................................................................3-1
Locations, Organizations, Units of Measure and Items .................................................................................3-2
Agenda...........................................................................................................................................................3-3
What Is an Item?............................................................................................................................................3-4
Oracle Applications Use Items ......................................................................................................................3-5
How Do Oracle Applications Use Items?......................................................................................................3-6
Item Attributes...............................................................................................................................................3-8
Items Have Statuses Which Represent the Life Cycle of the Item ................................................................3-10
Item Attributes Used in Item Status...............................................................................................................3-12
Item Master Organization and Child Organizations ......................................................................................3-14
Creating an Item ............................................................................................................................................3-16
Setup, Define and Maintain Items .................................................................................................................3-17
Describing Attribute Control at Master Level ...............................................................................................3-20
Describing Attribute Control at Child Level .................................................................................................3-22
Describing Item Status Attribute Controls.....................................................................................................3-24
Describing Status Attribute Dependencies ....................................................................................................3-26
Describing Item Attributes - Inventory..........................................................................................................3-27
Describing Item Attributes - Purchasing .......................................................................................................3-31
Describing Item Attributes - Receiving .........................................................................................................3-36
Guided Demonstration - Create an Expense Item (Required) ...................................................................3-39
Guided Demonstration - Create an Inventory Item (Required)..................................................................3-41
Guided Demonstration - Create an Item for a Routinely Purchased Asset (Required)..............................3-43
Practice - Create Items...............................................................................................................................3-45
Solution - Create Items ..............................................................................................................................3-48
Define Item Relationships - Purchasing ........................................................................................................3-56
Agenda...........................................................................................................................................................3-58
Describing Item Templates............................................................................................................................3-59
Creating Item Templates ...............................................................................................................................3-60
Using Item Templates....................................................................................................................................3-62

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Example of Using a Template .......................................................................................................................3-63


Additional Setup Considerations ...................................................................................................................3-64
Summary........................................................................................................................................................3-66
RFQs and Quotations......................................................................................................................................4-1
RFQs and Quotations.....................................................................................................................................4-2
Procure to Pay Lifecycle................................................................................................................................4-3
Objectives ......................................................................................................................................................4-4
Agenda...........................................................................................................................................................4-5
RFQs and Quotations.....................................................................................................................................4-6
Agenda...........................................................................................................................................................4-7
Request for Quotation....................................................................................................................................4-8
RFQ Lifecycle ...............................................................................................................................................4-10
Send Notifications .........................................................................................................................................4-11
RFQ Types.....................................................................................................................................................4-12
Supplier List ..................................................................................................................................................4-13
Guided Demonstration - Create a Supplier List (Required).......................................................................4-14
Practice - Create a Supplier List ................................................................................................................4-15
Solution - Create a Supplier List................................................................................................................4-16
RFQ Structure................................................................................................................................................4-18
RFQ Header...................................................................................................................................................4-19
RFQ Lines .....................................................................................................................................................4-21
RFQ Price Breaks/Shipments ........................................................................................................................4-23
Guided Demonstration - Create a Catalog RFQ (Required) ......................................................................4-24
Practice - Create a Catalog RFQ................................................................................................................4-27
Solution - Create a Catalog RFQ ...............................................................................................................4-31
Agenda...........................................................................................................................................................4-44
Quotations......................................................................................................................................................4-45
Quotation Lifecycle .......................................................................................................................................4-47
Send Notifications .........................................................................................................................................4-48
Quotation Types ............................................................................................................................................4-49
Quotation Structure........................................................................................................................................4-50
Quotation Header...........................................................................................................................................4-51
Quotation Lines .............................................................................................................................................4-53
Quotation Price Breaks/Shipments ................................................................................................................4-55
Quotation Approvals......................................................................................................................................4-56
Guided Demonstration - Create a Catalog Quote from an RFQ (Required) ..............................................4-57
Guided Demonstration - Schedule the Send Notifications for Purchasing Documents Process (Required)
...................................................................................................................................................................4-60
Practice - Create a Catalog Quote from an RFQ........................................................................................4-61
Solution - Create a Catalog Quote from an RFQ .......................................................................................4-63
Agenda...........................................................................................................................................................4-68
Reports...........................................................................................................................................................4-69
Summary........................................................................................................................................................4-71

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Approved Supplier Lists and Sourcing Rules ...............................................................................................5-1


Approved Supplier Lists and Sourcing Rules................................................................................................5-2
Procure to Pay Lifecycle................................................................................................................................5-3
Objectives ......................................................................................................................................................5-4
Agenda...........................................................................................................................................................5-5
Approved Supplier Lists ................................................................................................................................5-6
Supplier Statuses ...........................................................................................................................................5-7
Guided Demonstration - Create an Approved Supplier List Status (Required) .........................................5-9
Practice - Create an Approved Supplier List Status...................................................................................5-10
Solution - Create an Approved Supplier List.............................................................................................5-11
ASL Common Header Attributes ..................................................................................................................5-13
ASL Header Attributes - Item........................................................................................................................5-15
ASL Header Attributes - Commodity............................................................................................................5-16
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Supplier-Commodity/Item Attributes ............................................................................................................5-18


Supplier-Commodity/Item Attributes Source Document ..............................................................................5-21
Supplier-Commodity/Item Attributes Supplier Scheduling...........................................................................5-23
Supplier-Commodity/Item Attributes Planning Constraints..........................................................................5-25
Guided Demonstration - Require an Approved Supplier for an Item (Required) ......................................5-27
Guided Demonstration - Create an Approved Supplier List (Required)....................................................5-29
Practice - Require an Approved Supplier for an Item................................................................................5-31
Solution - Require an Approved Supplier for an Item ...............................................................................5-33
Practice - Create an Approved Supplier List .............................................................................................5-38
Solution - Create an Approved Supplier List.............................................................................................5-40
Agenda...........................................................................................................................................................5-45
Sourcing Rules Overview ..............................................................................................................................5-46
Sourcing Rules...............................................................................................................................................5-47
Oracle Products That Use Sourcing Rules.....................................................................................................5-49
Create a Sourcing Rule ..................................................................................................................................5-50
Create a Sourcing Rule Assignment ..............................................................................................................5-51
Levels of Sourcing Rule Assignments...........................................................................................................5-53
Sourcing Rules with an ASL Source Document............................................................................................5-54
Sourcing Rules without an ASL Source Document.......................................................................................5-55
Default Sourcing Information to Requisitions...............................................................................................5-56
Default Sourcing Information to Standard Purchase Orders .........................................................................5-57
Guided Demonstration - Create a Sourcing Rule and a Sourcing Rule Assignment (Required) ...............5-58
Guided Demonstration - Enable Automatic Document Sourcing (Required)............................................5-62
Practice - Create a Sourcing Rule and a Sourcing Rule Assignment.........................................................5-64
Solution - Create a Sourcing Rule and a Sourcing Rule Assignment ........................................................5-67
Practice - Enable Automatic Document Sourcing .....................................................................................5-72
Solution - Enable Automatic Document Sourcing.....................................................................................5-73
Summary........................................................................................................................................................5-74
Requisitions ......................................................................................................................................................6-1
Requisitions ...................................................................................................................................................6-2
Procure to Pay Lifecycle................................................................................................................................6-3
Objectives ......................................................................................................................................................6-4
Agenda...........................................................................................................................................................6-5
Where Purchase Requisitions Fit...................................................................................................................6-6
Requisition Lifecycle.....................................................................................................................................6-7
Send Notifications .........................................................................................................................................6-8
Agenda...........................................................................................................................................................6-9
Requisition Structure .....................................................................................................................................6-10
Requisition Preferences .................................................................................................................................6-11
Requisition Header ........................................................................................................................................6-13
Requisition Line ............................................................................................................................................6-15
Guided Demonstration - Create a Purchase Requisition (Required)..........................................................6-19
Practice - Create a Purchase Requisition ...................................................................................................6-21
Solution - Create a Purchase Requisition...................................................................................................6-23
Agenda...........................................................................................................................................................6-30
Supplier Item Catalog....................................................................................................................................6-31
Using the Supplier Item Catalog....................................................................................................................6-32
Guided Demonstration - Create a Requisition Template (Required).........................................................6-33
Guided Demonstration - Use the Supplier Item Catalog to Create a Requisition (Required)....................6-35
Practice - Create a Requisition Template...................................................................................................6-37
Solution - Create a Requisition Template..................................................................................................6-39
Practice - Use the Supplier Item Catalog to Create a Requisition .............................................................6-42
Solution - Use the Supplier Item Catalog to Create a Requisition.............................................................6-43
Requisition Distribution ................................................................................................................................6-47
Allocating Costs to Multiple Charge Accounts .............................................................................................6-49
Submitting Requisitions for Approval...........................................................................................................6-50

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Approving Requisitions.................................................................................................................................6-51
Requisition Templates ...................................................................................................................................6-52
Requisition Actions .......................................................................................................................................6-53
Agenda...........................................................................................................................................................6-54
Reports...........................................................................................................................................................6-55
Summary........................................................................................................................................................6-57
Purchase Orders ..............................................................................................................................................7-1
Purchase Orders.............................................................................................................................................7-2
Procure to Pay Lifecycle................................................................................................................................7-3
Objectives ......................................................................................................................................................7-4
Agenda...........................................................................................................................................................7-5
Purchase Order Types....................................................................................................................................7-6
Purchase Orders.............................................................................................................................................7-8
Purchase Order Components and Record Structure.......................................................................................7-9
Overview of AutoCreated Purchase Orders...................................................................................................7-11
Agenda...........................................................................................................................................................7-13
Overview of Standard Purchase Orders.........................................................................................................7-14
Simplify the Entry of Purchase Orders: Preferences .....................................................................................7-15
Standard Purchase Order Elements................................................................................................................7-17
Structure of a Simple Standard Purchase Order ............................................................................................7-18
Structure of a More Complex Standard Purchase Order................................................................................7-19
Entering Standard Purchase Order Header Information ................................................................................7-20
Standard Purchase Orders Terms and Conditions .........................................................................................7-22
Entering Standard Purchase Order Lines Tabbed Regions............................................................................7-24
Standard Purchase Order Line Items Tabbed Region....................................................................................7-25
Standard Purchase Order Line Price Reference Tabbed Region ...................................................................7-27
Standard Purchase Order Line Reference Documents Tabbed Region..........................................................7-28
Standard Purchase Order Line More Tabbed Region ....................................................................................7-30
Entering Standard Purchase Order Shipments - Tabbed Regions..................................................................7-31
Standard Purchase Order Shipment Shipments Tabbed Region ....................................................................7-32
Standard Purchase Order Shipment More Tabbed Region ............................................................................7-34
Standard Purchase Order Shipment Status Tabbed Region ...........................................................................7-36
Standard Purchase Order Shipment Receiving Controls Button....................................................................7-37
Entering Standard Purchase Order Distributions - Tabbed Regions..............................................................7-38
Standard Purchase Order Distribution Destination Tabbed Region ..............................................................7-39
Standard Purchase Order Distribution More Tabbed Region ........................................................................7-41
Standard Purchase Order Distribution Project Tabbed Region......................................................................7-42
Approve Standard Purchase Order ................................................................................................................7-43
Guided Demonstration - Create a Standard Purchase Order (Required) ...................................................7-44
Practice - Create a Standard Purchase Order .............................................................................................7-50
Solution - Create a Standard Purchase Order.............................................................................................7-52
Agenda...........................................................................................................................................................7-64
When to Use a Blanket Purchase Agreement ................................................................................................7-65
Blanket Releases............................................................................................................................................7-66
Blanket Purchase Agreements Additional Information Entered....................................................................7-68
Blanket Purchase Agreements Additional Information - Header ..................................................................7-69
Blanket Purchase Agreements Additional Information - Lines .....................................................................7-71
Blanket Purchase Agreements Additional Information - Price Breaks..........................................................7-73
Notification Controls .....................................................................................................................................7-75
Approve Blanket Purchase Agreement..........................................................................................................7-77
Guided Demonstration - Create a Blanket Purchase Agreement (Required).............................................7-78
Blanket Purchase Agreement and Blanket Releases......................................................................................7-81
Blanket Releases Structure - Header .............................................................................................................7-82
Blanket Releases Structure Shipments and Distributions ..............................................................................7-84
Guided Demonstration - Create a Blanket Release (Required) .................................................................7-85
Practice - Create a Blanket Purchase Agreement and Blanket Release .....................................................7-86

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Solution - Create a Blanket Purchase Agreement and Blanket Release ....................................................7-88


Agenda...........................................................................................................................................................7-98
When to Use a Contract Purchase Agreement...............................................................................................7-99
Contract Purchase Agreements Additional Information Entered...................................................................7-100
Standard Purchase Order Line Reference Documents Tabbed Region..........................................................7-102
Guided Demonstration - Create a Contract Purchase Agreement (Required)............................................7-104
Practice - Create a Contract Purchase Agreement .....................................................................................7-106
Solution - Create a Contract Purchase Agreement.....................................................................................7-107
Agenda...........................................................................................................................................................7-113
Purchase Order Inquiry..................................................................................................................................7-114
Modifying Purchase Orders...........................................................................................................................7-116
Printing Purchase Orders ...............................................................................................................................7-118
Creating Purchase Order Revisions ...............................................................................................................7-119
Archiving Purchase Orders............................................................................................................................7-120
Purchase Order Statuses - Typical Cycle.......................................................................................................7-121
Entering Purchase Order Acceptances...........................................................................................................7-124
Workflow Notifications.................................................................................................................................7-126
Copying Purchase Orders ..............................................................................................................................7-127
Agenda...........................................................................................................................................................7-129
Reports...........................................................................................................................................................7-130
Summary........................................................................................................................................................7-134
Automatic Document Creation.......................................................................................................................8-1
Automatic Document Creation ......................................................................................................................8-2
Procure to Pay Lifecycle................................................................................................................................8-3
Objectives ......................................................................................................................................................8-4
Agenda...........................................................................................................................................................8-5
Creating Purchase Documents from Requisitions .........................................................................................8-6
Benefits of Using AutoCreate........................................................................................................................8-8
Overview of AutoCreate................................................................................................................................8-9
Automatic Creation Mode .............................................................................................................................8-11
Find Requisition Lines...................................................................................................................................8-12
Select Document Creation Criteria ................................................................................................................8-14
Select Requisition Lines ................................................................................................................................8-16
Select Automatic Creation Mode...................................................................................................................8-17
Autocreate New Document Window.............................................................................................................8-18
Manual Creation Mode..................................................................................................................................8-19
Add to Existing Document ............................................................................................................................8-20
Modify Requisition Lines..............................................................................................................................8-21
Return Requisition Lines ...............................................................................................................................8-22
Guided Demonstration - Return a Requisition (Required) ........................................................................8-23
Guided Demonstration - AutoCreate a Purchase Order (Required)...........................................................8-25
Practice - Return a Requisition ..................................................................................................................8-26
Solution - Return a Requisition .................................................................................................................8-29
Practice - AutoCreate a Purchase Order ....................................................................................................8-38
Solution - AutoCreate a Purchase Order....................................................................................................8-39
Summary........................................................................................................................................................8-42

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Receiving ..........................................................................................................................................................9-1
Receiving.......................................................................................................................................................9-2
Procure to Pay Lifecycle................................................................................................................................9-3
Objectives ......................................................................................................................................................9-4
Agenda...........................................................................................................................................................9-5
Receiving.......................................................................................................................................................9-6
Overview of Receiving Locations .................................................................................................................9-8
Agenda...........................................................................................................................................................9-9
Overview of Receipt Routing ........................................................................................................................9-10
Direct Delivery ..............................................................................................................................................9-11
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Standard Receipt............................................................................................................................................9-12
Inspection Required.......................................................................................................................................9-13
Agenda...........................................................................................................................................................9-14
Receipt Processing Methods..........................................................................................................................9-15
Standard Receipt............................................................................................................................................9-17
Express Receipt .............................................................................................................................................9-18
Cascade Receipt.............................................................................................................................................9-19
ASNs and ASBNs..........................................................................................................................................9-20
Receiving in iProcurement ............................................................................................................................9-21
Receiving Open Interface ..............................................................................................................................9-22
Finding Expected Receipts ............................................................................................................................9-23
Receipt Header ..............................................................................................................................................9-25
Receipt Line...................................................................................................................................................9-27
Guided Demonstration - Create a Standard Purchase Order (Required) ...................................................9-29
Guided Demonstration - Create a Standard Receipt (Required)................................................................9-34
Guided Demonstration - Create an Express Receipt (Required) ...............................................................9-36
Guided Demonstration - Create a Cascade Receipt (Required).................................................................9-38
Practice - Create Items...............................................................................................................................9-40
Solution - Create Items ..............................................................................................................................9-43
Practice - Create a Standard Purchase Order .............................................................................................9-51
Solution - Create a Standard Purchase Order.............................................................................................9-54
Practice - Create a Standard Receipt..........................................................................................................9-61
Solution - Create a Standard Receipt .........................................................................................................9-63
Practice - Create an Express Receipt .........................................................................................................9-65
Solution - Create an Express Receipt.........................................................................................................9-67
Practice - Create a Cascade Receipt ..........................................................................................................9-69
Solution - Create a Cascade Receipt..........................................................................................................9-71
Control the Receiving Transaction Processor................................................................................................9-74
Receiving Tolerances ....................................................................................................................................9-76
Control Numbers ...........................................................................................................................................9-77
Agenda...........................................................................................................................................................9-78
Substitute Receipts ........................................................................................................................................9-79
Unordered Receipts .......................................................................................................................................9-80
Overview of Returns and Corrections ...........................................................................................................9-81
Entering Returns ............................................................................................................................................9-82
Entering Corrections......................................................................................................................................9-83
Difference between Returns and Corrections ................................................................................................9-84
Guided Demonstration - Inspect and Deliver a Receipt (Required) ..........................................................9-85
Guided Demonstration - Process a Return to Supplier (Optional).............................................................9-87
Guided Demonstration - Correct a Receiving Error (Optional).................................................................9-89
Practice - Inspect and Deliver a Receipt ....................................................................................................9-91
Solution - Inspect and Deliver a Receipt ...................................................................................................9-93
Practice - Process a Return to Supplier......................................................................................................9-96
Solution - Process a Return to Supplier .....................................................................................................9-98
Practice - Correct a Receiving Error..........................................................................................................9-100
Solution - Correct a Receiving Error .........................................................................................................9-102
Overview of Pay on Receipt ..........................................................................................................................9-105
Agenda...........................................................................................................................................................9-107
Reports...........................................................................................................................................................9-108
Summary........................................................................................................................................................9-111

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Preface
Profile
Prerequisites

11i Navigating Oracle Applications

11i Essentials for Implementers.

How This Course Is Organized


This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations
and written practice sessions reinforce the concepts and skills introduced.

Related Publications
Oracle Publications
Title

Part Number

Oracle Payables Users Guide

A81180-03

Oracle Purchasing Users Guide

A82913-01

Oracle iProcurement Installation Guide

A85343-02

Oracle Inventory Users Guide

A83507-03

Implementing Oracle HRMS (US)

Additional Publications

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A75314-02

System release bulletins

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read.me files

Oracle Magazine

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11i Purchasing for End Users Table of Contents


ix

Typographic Conventions
Typographic Conventions in Text
Convention
Bold italic

Element
Glossary term (if
there is a glossary)

Example
The algorithm inserts the new key.

Caps and
lowercase

Buttons,
check boxes,
triggers,
windows

Click the Executable button.


Select the Cant Delete Card check box.
Assign a When-Validate-Item trigger to the ORD block.
Open the Master Schedule window.

Courier new,
case sensitive
(default is
lowercase)

Code output,
directory names,
filenames,
passwords,
pathnames,
URLs,
user input,
usernames

Code output: debug.set (I, 300);


Directory: bin (DOS), $FMHOME (UNIX)
Filename: Locate the init.ora file.
Password: User tiger as your password.
Pathname: Open c:\my_docs\projects
URL: Go to http://www.oracle.com
User input: Enter 300
Username: Log on as scott

Initial cap

Graphics labels
(unless the term is a
proper noun)

Customer address (but Oracle Payables)

Italic

Do not save changes to the database.


For further information, see Oracle7 Server SQL Language
Reference Manual.
Enter user_id@us.oracle.com, where user_id is the
name of the user.
Select Include a reusable module component and click Finish.

Arrow
Brackets
Commas

Emphasized words
and phrases,
titles of books and
courses,
variables
Interface elements
with long names
that have only
initial caps;
lesson and chapter
titles in crossreferences
SQL column
names, commands,
functions, schemas,
table names
Menu paths
Key names
Key sequences

Plus signs

Key combinations

Quotation
marks

This subject is covered in Unit II, Lesson 3, Working with


Objects.

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Uppercase

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Use the SELECT command to view information stored in the


LAST_NAME
column of the EMP table.

Select File > Save.


Press [Enter].
Press and release keys one at a time:
[Alternate], [F], [D]
Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

Copyright Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents


x

Typographic Conventions in Code


Convention
Caps and
lowercase
Lowercase

Element
Oracle Forms
triggers
Column names,
table names

Example
When-Validate-Item

Passwords

DROP USER scott


IDENTIFIED BY tiger;
OG_ACTIVATE_LAYER
(OG_GET_LAYER (prod_pie_layer))

SELECT last_name
FROM s_emp;

PL/SQL objects

Lowercase
italic
Uppercase

Syntax variables

CREATE ROLE role

SQL commands and SELECT userid


FROM emp;
functions

Typographic Conventions in Navigation Paths


This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:

1.

(N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.

2.

(M) From the menu, select Query then Find.

3.

(B) Click the Approve button.

Notations:
(N) = Navigator

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(M) = Menu

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(T) = Tab

(B) = Button
(I) = Icon

(H) = Hyperlink

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11i Purchasing for End Users Table of Contents


xi

Typographical Conventions in Help System Paths


This course uses a navigation path convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example
(Help) General Ledger > Journals > Enter Journals
represents the following sequence of actions:
1.

In the navigation frame of the help system window, expand the General Ledger entry.

2.

Under the General Ledger entry, expand Journals.

3.

Under Journals, select Enter Journals.

4.

Review the Enter Journals topic that appears in the document frame of the help system
window.

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11i Purchasing for End Users Table of Contents


xii

Purchase Orders
Chapter 7

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Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 1

Purchase Orders

Purchase Orders

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Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 2

Procure to Pay Lifecycle

Procure to Pay Lifecycle


Requisitions
Catalog
Content
Management

Purchase
Orders
Ordering

RFQs/
Quotations

Receiving

Sourcing

Invoice/
Payment

Analysis
Supplier
management

Reporting
Supplier
Performance

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Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 3

Objectives

Objectives
After completing this module, you should be able to do
the following:
Create standard, blanket and contract
purchase documents
Create blanket purchase agreement releases
Maintain purchase orders
Identify key reports
Understand setup options
Understand additional implementation
considerations

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Purchase Orders
Chapter 7 - Page 4

Agenda

Agenda

Overview of purchase orders


Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Maintain/adjust purchase orders
Identify key standard reports
Understand setup options
Understand additional implementation
considerations

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Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 5

Purchase Order Types

Purchase Order Types


Standard
Purchase
Order

Planned
Purchase
Order

Blanket
Agreement

Contract
Agreement

Header

Header

Header

Header

Line

Line

Line

Shipment

Shipment

Distribution

Distribution

Scheduled
Release

Standard PO
Blanket
Release

Header
Line

Shipment

Shipment

Distribution

Distribution

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Purchase Order Types


Standard Purchase Order
A one-time commitment to purchase goods or services. You create standard purchase orders
when you know the details of the goods or services, estimated costs, quantities, delivery
schedules, and accounting distributions.
Planned Purchase Order
A long-term purchase agreement committing you to buy goods or services. Planned purchase
orders include tentative delivery schedules and accounting distributions. Create planned
releases to authorize suppliers to ship.
Blanket Purchase Agreement
A long-term agreement allowing for stable pricing over the life of the agreement, while also
allowing flexible order quantity commitments and delivery schedules. Pricing on blanket
purchase agreements can include break pricing. You typically use this agreement when
negotiating volume discounts on individual items. Create blanket releases to authorize
suppliers to ship.
Contract Purchase Agreement

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Purchase Orders
Chapter 7 - Page 6

A master terms and conditions document. Typically use contract purchase agreements when
negotiating pricing on a volume of business to manage terms and conditions. Suppliers are
authorized to ship through standard purchase order lines referencing the contract. Contracts
can be coupled with a catalog quotation to reference pricing on a per item basis.

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Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 7

Purchase Orders

Purchase Orders
Demand

Inventory

WIP

MRP

Order
Mgmt

Other
Systems

Import
Internal
Order Mgmt
sales order
Approval
Manually
create

Requisition
Requisition
pool

PO

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Purchase Orders
Demand for Goods or Services
Import requisitions from created from demand generated in Materials Requirements Planning
(MRP), Inventory, Work-in-Process (WIP), Order Management or other non-Oracle systems.
Demand can also be generated manually through detail entry, with the assistance of requisition
templates, or through the iProcurement module.
Sourcing
Goods or services can be sourced from external suppliers through the creation of purchase
orders or from within the organization through the creation of internal sales orders.

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Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 8

Purchase Order Components and Record Structure

Purchase Order Components and Record


Structure
Header

Lines

Shipments
1

Distributions
1

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Purchase Order Components and Record Structure


Header
Each purchase order has a header that provides the suppliers name/number and address
(through sites), basic ship-to and bill-to addresses (through locations) and a status.
Lines
Goods or services ordered are listed on the Lines region, including quantities, price, need-by
date, notes to supplier and price reference information. You can order system items or onetime items (a category and description). Even companies who are not inventory focused can
benefit from defining system items to reduce data entry requirements for their staff.
Shipments
Use the Shipments window to specify inventory organizations, ship-to locations and the date
you want your supplier to deliver the items on the purchase order line. A purchase order line
with a quantity of six items can, for example, have two scheduled shipments on separate dates.
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.

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Purchase Orders
Chapter 7 - Page 9

You can enter multiple distributions per shipment line. You can also view the on-line
requisitions included on the purchase order or enter information about paper requisitions in this
window.

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Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 10

Overview of AutoCreated Purchase Orders

Overview of AutoCreated Purchase Orders

Automatic
mode

Requisition
line
pool
Query available
requisition lines

Choose lines
from
query results

PO

Manual
mode
PO

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Overview of AutoCreated Purchase Orders


Using the AutoCreate form is a common method to produce purchase documents from
requisitions. Other methods include:
Purchasing Document Open Interface
PO Create Documents workflow
Copy Document
Requisition Line Pool
You can use the AutoCreate window to query requisition lines with a status of Approved to
place on purchase orders. You can query lines for different requisitions, different items,
different suggested suppliers, different departments, etc. You may be able to lower unit prices
by combining multiple requisition lines and taking advantage of volume discount purchases.
Automatic Mode Versus Manual Mode
After buyers query and select requisition lines, they can choose to use either Automatic
creation mode or Manual creation mode to place requisition lines on purchase documents.
You generally select manual creation mode only when you need to specify exact ordering and
grouping of requisition lines on a purchase document.

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Purchase Orders
Chapter 7 - Page 11

Agenda

Agenda

Overview of purchase orders


Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Maintain/adjust purchase orders
Identify key standard reports
Understand setup options
Understand additional
implementation considerations

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Purchase Orders
Chapter 7 - Page 12

Overview of Standard Purchase Orders

Overview of Standard Purchase Orders

Buyer

Supplier

Purchase Order
- binding agreement -

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Overview of Standard Purchase Orders


Definition
You generally create standard purchase orders for one-time purchases of various items when
you know the details of the goods or services you require, including costs, quantities, delivery
schedules and accounting distributions. Each standard purchase order line can have multiple
shipments, and you can distribute the quantity of each shipment across multiple charge
accounts, projects, tasks and requestors.
Binding agreement
The original copy of the purchase order you send to your supplier is a legal offer to buy. A
binding purchase contract does not exist until the supplier accepts your offer either by
performing the contract (by shipping goods) or formally accepting the offer by contacting you
verbally or in writing. You can record acceptances on behalf of your suppliers or they can do
it using iSupplier Portal. The Send Notifications for Purchasing Documents process will send
you a notification if a required acceptance is not recorded by the required date.

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Purchase Orders
Chapter 7 - Page 13

Simplify the Entry of Purchase Orders: Preferences

Simplify the Entry of Purchase Orders:


Preferences

Default Value Hierarchy

Preferences
PO Documents

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Simplify the Entry of Purchase Orders - Preferences


Definition
Use the Preferences window to enter values that will default to all purchase order headers,
lines, shipments and distributions that you enter. By using preferences, you have essentially
gained an additional level of defaults in the Default Value Hierarchy. Recall that the
Purchasing Default Value Hierarchy includes the following: Financials Options,
Purchasing/Receiving Options, Supplier, Supplier Site, Item and PO Documents.
Benefits
Although setting preferences is optional, you will want to selectively enter preferences for data
that would be repetitively entered on multiple lines, shipments or distributions. Preferences,
therefore, reduce the amount of data entry required to complete purchase orders. For example,
if youre creating a purchase order for four items, all of which are needed by the same date,
specify a Need-By date in the Preferences window that will default to all four lines. If,
however, all four items were needed by a different date, it wouldnt save any time to use the
Preferences window to specify a Need-By date.
How Long are Preferences Effective?

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Purchase Orders
Chapter 7 - Page 14

Session preferences must be set each time you log into the applications or even change
responsibilities. While in a session, however, preferences remain in effect unless you
explicitly clear or change them.
Apply Preferences to Save
Once the desired preferences have been set, you must click the Apply button to save them. If
you simply close the Preferences window, either no preferences will be set or previously set
preferences will remain in effect.

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Purchase Orders
Chapter 7 - Page 15

Standard Purchase Order Elements

Standard Purchase Order Elements


Standard Purchase
Order

Standard purchase orders


contain all four elements of
a purchasing document.

HEADER

All purchase order types


represent some combination
of the basic elements of the
standard purchase order.

LINE

SHIPMENT

DISTRIBUTION

Standard Purchase Order Elements


Purchasing Responsibility
(N) Purchase Orders > Purchase Orders

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The Standard Purchase Order is complete and allows a supplier to locate and deliver the goods
or services ordered. All purchase order types represent some combination of the basic
elements of the standard purchase order.
Header - Contains the purchase order number, the suppliers name and address, basic
ship-to and bill-to addresses, and the status.
Line - Details of the goods or services ordered, including name, quantity and price.
Shipment - Details of when and where to deliver items.
Distribution - Details of charge accounts and requisition references.

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Purchase Orders
Chapter 7 - Page 16

Structure of a Simple Standard Purchase Order

Structure of a Simple Standard Purchase


Order
HEADER

LINE 1

LINE 2

SHIPMENT 1

SHIPMENT 1

DISTRIBUTION 1

DISTRIBUTION 1

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Structure of a Simple Standard Purchase Order


The structure displayed above shows a purchase order with two items being ordered (Line 1
and Line 2). Each item is expected to be shipped on the same day to a single address.
Furthermore, each item is charged to a single charge account.

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Purchase Orders
Chapter 7 - Page 17

Structure of a More Complex Standard Purchase Order

Structure of a More Complex Standard


Purchase Order
HEADER
LINE 1

SHIPMENT 1

DISTRIBUTION 1

LINE 2

SHIPMENT 1

SHIPMENT 2

DISTRIBUTION 1

DISTRIBUTION 1

DISTRIBUTION 2

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Structure of a More Complex Standard Purchase Order


The structure displayed above shows a purchase order with two items being ordered (line 1 and
line 2). Line 1, however, has a single shipment with multiple distributions while line 2 has
multiple shipments, each with a single distribution. Notice that you cannot equate the number
associated with a shipment line or distribution line with an item line. For example, distribution
2 does not belong to shipment 2 or line 2. Distribution 2 actually belongs to shipment 1 which
belongs to item line 1.

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Purchase Orders
Chapter 7 - Page 18

Entering Standard Purchase Order Header Information

Entering Standard Purchase Order Header


Information
Purchase Orders
PO Number

PO Type

Created Date

Supplier Name

Supplier Site

Supplier Contact

Ship To

Bill To

Currency

Buyer

Status

Total

Description
Line
Currency

Terms

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Entering Standard Purchase Order Header Information


PO Number
The system will generate a PO number when the document is saved, if PO automatic number
generation is enabled. If manual numbering is enabled, you must enter a unique PO number.
PO Type
Select Standard Purchase Order for this field.
Creation Date
This will be the date that the document was initially saved. It may be the same day, the next
week or the next month before the purchase order is submitted for approval.
Supplier, Site and Contact
The list of values on the Supplier field contains active suppliers. The list of values on the site
field contains active sites that are designated as purchasing sites on the General tabbed region
for the site. If you cannot find the desired supplier or site, you may need to request that it be
defined. Choose a contact using the list of values if contacts are defined and no contact
defaults.
Ship-to and Bill-to Locations

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Purchase Orders
Chapter 7 - Page 19

Ship-to and Bill-to locations default based on the supplier and site you select. You can
override the values that default.
Currency
The functional currency defaults. Use the Currency button to change the functional currency if
you are using multiple currencies.
Buyer
The defaulted buyer is the employee name associated with the user name of the person creating
the purchase order. If the Enforce Buyer Name option in the Purchasing Options window is set
to Yes, you will not be able to override the default.
Status
The status of a newly created purchase order is Incomplete. The status will be updated by the
system based on actions taken by buyers or approvers.
Total
The total of the purchase order is displayed based on the extended line totals.
Description
You can enter comments in the 240 character description field. Although the description does
not print on the printed purchase order, suppliers can use it if they have access to the system
with iSupplier Portal.

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Purchase Orders
Chapter 7 - Page 20

Standard Purchase Orders Terms and Conditions

Standard Purchase Orders Terms and


Conditions
Terms

Special Conditions

Payment

Confirming Order

Freight

Firm

Carrier

Acceptance Required

FOB
Pay On
Notes
Supplier
Receiver

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Standard Purchase Orders - Terms and Conditions


Payment terms
Specify payment terms indicate when you are expected to make payment for the goods or
services received. The terms may include an amount due, as well as a discount amount.
Commonly used payment terms are Net 30 or 2/10, Net/30. You can create additional payment
terms as necessary.
Freight terms
Specify freight terms to indicate who is responsible for the direct charges related to
transporting shipped goods. Commonly used freight terms include Due (indicating you pay the
freight charges) or Prepaid (indicating that the supplier will pay for the freight charges).
Carrier
Specify the name of the freight carrier responsible for physical transportation of the goods.
FOB, or Free-On-Board
Specify FOB to indicate the point at which ownership of the goods (and therefore costs of loss
or damage) transfers from the supplier to you. Commonly used FOB terms include Origin
(indicating that ownership transfers at the point when the supplier delivers the goods to the

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Purchase Orders
Chapter 7 - Page 21

carrier) and Destination (indicating that ownership transfers at the point when the carrier
delivers the goods to you).
Pay On
Provides a default value of Receipt if the selected supplier site has been enabled for the Pay on
Receipt functionality. If Receipt is selected, an invoice will be automatically created for this
purchase order when receipt of the goods has been acknowledged and you run the Pay on
Receipt AutoInvoice process. If you do not want an invoice to be created, you can clear the
value that defaults into the field.
Special Conditions
Confirming Order - Indicates that youve already communicated the order to the supplier
and this purchase order is simply providing written confirmation. When you select the
Confirming Order option, the words This is a confirming order. Do not duplicate. will
be included on the printed purchase order.
Firm - This is a setting used with MRP to indicate to that module that it can neither
change the details nor suggest changes to the details of the purchase order based on
changed demands that have occurred since the order was originally created.
Acceptance Required - Indicates whether acknowledgement of receipt of the purchase
order is requested from the supplier. When the box is checked, the buyer can also
provide the date by which that acknowledgement is requested.
Notes:
Supplier Note - This field can be used to enter up to 240 characters which will print on
the purchase order sent to the supplier.
Receiver Note - This field also allows up to 240 characters to be entered, but will not be
printed on the purchase order. Notes to receiver are can be viewed by users entering
actual receipt transactions.

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Purchase Orders
Chapter 7 - Page 22

Entering Standard Purchase Order Lines Tabbed Regions

Entering Standard Purchase Order Lines


Tabbed Regions
The line portion of the standard purchase order is
comprised of four tabbed regions:
Items
Price Reference
Reference Documents
More

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Entering Standard Purchase Order Lines - Tabbed Regions


Enter initial information regarding the goods or services being ordered in the tabbed regions
for the line. If sufficient valid default information is available, Purchasing creates shipments
and distributions for each line.
Items Tabbed Region
Enter basic information such as the items, descriptions, quantities, and dates needed.
Price Reference Tabbed Region
Pricing information will default in this tabbed region from the item definition.
Reference Documents Tabbed Region
Use the Reference Documents tabbed region to reference contracts or catalog quotations when
purchasing items from established agreements. If you have associated a catalog quotation with
an approved supplier list or are have set the PO: Automatic Document Sourcing profile option
to Yes, and have valid quotations in the system, quotation information will default.
More Tabbed Region
Enter information regarding hazardous materials and supplier notes in this tabbed region.

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Purchase Orders
Chapter 7 - Page 23

Standard Purchase Order Line Items Tabbed Region

Standard Purchase Order Line Items


Tabbed Region
Standard Purchase
Order

Items
Num, Type, Item, Revision,
Category, Description,
UOM, Quantity, Price,
Promised, Need-By, Supplier
Item, Charge
Account, Amount

Price Reference
Reference Documents
More

HEADER

LINE

SHIPMENT

DISTRIBUTION

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Standard Purchase Order Line - Items Tabbed Region


Num
The system will automatically generate a unique line number for each line you create.
Type
The value that defaults to new lines is the value set as the default in the Purchasing Options
window. If you enter a system item, the type set on the items definition will override the
original defaulting value if necessary.
Item/Revision
Select from the list of values if ordering an item thats already been defined in the item master.
Once selected, the category, description, UOM and price will populate based on the item
definition. If the system item has been placed under revision control, you must also select the
appropriate revision number being ordered. If ordering items that have not been defined in the
item master, skip the Item/Revision fields and manually enter a category, description, UOM
and price.
Category

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Purchase Orders
Chapter 7 - Page 24

A required field populated either from the predefined items definition or manually. You
cannot change the purchasing category if you choose a system item.
Description
For system items, you can update the description only if that functionality has been enabled for
item attribute controlling descriptions. The full item description for the current line is
displayed beneath the Lines tabbed region. You must provide a description for one-time items.
UOM (Unit of Measure)
The UOM qualifies the quantity that will next be entered. Suppliers need to know whether
youre ordering 3 each, 3 boxes or 3 pounds. The value initially populates with the default set
up for the line type selected, and is then overridden by the value set on the item definition.
Quantity
Enter the total quantity to be ordered.
Promise/Need-By Dates
Enter the date that you have requested delivery from the supplier in the Need-By date field. If
you have communicated with the supplier who has committed to a delivery date, enter it in the
Promise field instead. Its important that only supplier-provided dates be entered in the
Promise field, and non supplier-provided dates be entered only in the Need-By date field.
These dates will be used to measure supplier performance related to delivery issues.
Supplier Item
If available, you can enter the number or name that the item has been assigned on the
suppliers item list. For example, our item master may have assigned a number/name in Oracle
of Pencils, Lead No. 2, but the suppliers number for the item in their system may be 127732.
Charge Account
If an item is distributed to a single charge account, the account number is displayed for
viewing purposes only, it cannot be updated directly in this window. If an item is being
distributed to multiple charge accounts, the word Multiple will be displayed, requiring you
to drill down to either the Shipment or Distribution level of the purchase order to see charge
account combinations.
Amount
This is a display field which holds the results of the quantity ordered multiplied by the price.

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Purchase Orders
Chapter 7 - Page 25

Standard Purchase Order Line Price Reference Tabbed Region

Standard Purchase Order Line Price


Reference Tabbed Region
Standard Purchase
Order

Items
Price Reference

HEADER

Num, List Price,


Market Price, Price Type

Reference Documents
More

LINE

SHIPMENT

DISTRIBUTION

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Standard Purchase Order Line - Price Reference Tabbed Region


Num
The system will automatically generate a unique line number for each line you create.
List Price/Market Price
When ordering predefined items, the list price and market price will default from the items
definition if specified. You can either accept the defaults or make changes. The list price is
the price paid with no discounts, while the market price is what the item is currently selling for
in the market.
Price Type
This is a user-defined list of values developed through lookup codes. Commonly used price
types include fixed, variable and cost plus fee.

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Purchase Orders
Chapter 7 - Page 26

Standard Purchase Order Line Reference Documents Tabbed


Region

Standard Purchase Order Line Reference


Documents Tabbed Region
Standard Purchase
Order

Items
Price Reference
Reference Documents

HEADER

Num, Contract, Quotation,


Line, Quotation Type,
Supplier Quotation

LINE

More
SHIPMENT

DISTRIBUTION

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Standard Purchase Order Line - Reference Documents Tabbed Region


Num
The system will automatically generate a unique line number for each line you create.
Contract
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 expiration 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 released amount on the contract purchase
agreement. Purchasing lists only those contracts with the same supplier as the one on your
standard purchase order.
Quotation/Line/Quotation Type/Supplier Quotation
These fields are display only and will be populated if you selected a quotation from the
Supplier Item Catalog. These fields will also be populated if you have created sourcing rules
and either associated a catalog with an approved supplier list (PO: Automatic Document

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Purchase Orders
Chapter 7 - Page 27

Sourcing = No) or have active, unexpired quotations in the system (PO: Automatic Document
Sourcing = Yes). This catalog will be discussed later in this module.

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Purchase Orders
Chapter 7 - Page 28

Standard Purchase Order Line More Tabbed Region

Standard Purchase Order Line More


Tabbed Region
Standard Purchase
Order

Items
Price Reference
Reference Documents
More

HEADER

Num, Note to Supplier,


UN Number, Hazard,
Capital Expense

LINE

SHIPMENT

DISTRIBUTION

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Standard Purchase Order Line - More Tabbed Region


Num
The system will automatically generate a unique line number for each line you create.
Note to Supplier
Enter up to 240 characters of special information that needs to be communicated to the
supplier. Notes at this level are specific to the particular line entered as opposed to notes to
suppliers entered at the header level that pertain to all lines on the purchase order. If 240
characters are not sufficient, use the Attachments feature to add a text attachment that will
print on the purchase order.
UN Number/Hazard
If applicable, enter the UN identification number for the item. Any default, if present, comes
from the item definition. If youve entered a UN Number, the corresponding hazard class is
displayed. Otherwise, you can enter a hazard class for this item.
Capital Expense
Indicates that the purchase is a capital expenditure that will be later integrated with Assets or
some other asset system.

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Purchase Orders
Chapter 7 - Page 29

Entering Standard Purchase Order Shipments - Tabbed Regions

Entering Standard Purchase Order


Shipments - Tabbed Regions

The shipment portion of the standard purchase


order is actually comprised of three tabbed
regions:
Shipments
More
Status

Must be at least one shipment for each line


Can be many shipments for each line

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Entering Standard Purchase Order Shipments - Tabbed Regions


The Shipment section of the purchase order contains detail regarding quantities of items to be
shipped by specified ship dates and to specified ship locations. When you save your work,
Purchasing creates distributions if sufficient, valid, default information is available and if there
are no existing distributions.

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Purchase Orders
Chapter 7 - Page 30

Standard Purchase Order Shipment Shipments Tabbed Region

Standard Purchase Order Shipment


Shipments Tabbed Region
Shipments

More

Status

Num
Org/Ship-To
UOM/Quantity
Need-By
Promised Date/
Original
Promise
Charge
Account
Amount

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Standard Purchase Order Shipment - Shipments Tabbed Region


Num
The system will automatically generate a unique line number for each line you create.
Org
If you entered a system item, you can pick only inventory 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 inventory organization. If you did not enter an item, then you can
select from a list of values of inventory organizations.
Ship-To
You can pick any location that is not tied to a specific inventory organization or any location
whose associated organization matches the organization in the previous field.
UOM/Quantity
The first shipment line for any item will have the full quantity and UOM defaulting from the
Items tabbed region previously discussed. If you decrease this quantity, Purchasing will
automatically default the remaining quantity ordered that has not yet been placed on the

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Purchase Orders
Chapter 7 - Page 31

shipment line on the next shipment line you create. The total quantity of scheduled shipments
for a particular line must sum to the quantity in the Items tabbed region.
Need-By
Enter a Need-By date. This field is optional unless the item is a planned item. This field is
used in several reports that relate to analyzing supplier performance.
Promised Date/Original Promise
Enter the date that the supplier promised delivery of the items. If you are subsequently
contacted by the Supplier with a different date, you will simply overwrite the previous promise
date with the new promise date. When this is done, Purchasing shifts the original promised
date into the Original Promise field so that supplier performance can be measured against these
dates. If the supplier again extends the delivery date promised, you can again overwrite the
promise date with the new promise date. The system will continue to maintain the promise
date initially provided in the original promise date field. Supplier performance can then be
measured for the time between the original promise date and the current promise date.
Suppliers can themselves update their promised delivery date through the iSupplier Portal.
Charge Account
If a shipment is purchased from a single charge account, the account number is displayed for
viewing purposes only, it cannot be updated directly in this window. If an item is being
purchased from multiple charge accounts, the word Multiple will be displayed, requiring you
to drill down to the Distribution level of the purchase order to see account numbers.
Amount
This is a display field which holds the results of the quantity ordered multiplied by the price.

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Purchase Orders
Chapter 7 - Page 32

Standard Purchase Order Shipment More Tabbed Region

Standard Purchase Order Shipment More


Tabbed Region
Shipments

More

Status

Num
Receipt Close
Tolerance (%)
Invoice Close
Tolerance (%)
Invoice
Matching
Accrue on
Receipt
Firm

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Standard Purchase Order Shipment - More Tabbed Region


Num
The system will automatically generate a unique line number for each line you create.
Receipt Close Tolerance (%)
Purchasing automatically closes a shipment for receiving if it is within the receipt closing
tolerance at the receiving close point. Set the receiving close point in the Purchasing Options
window.
Invoice Close Tolerance (%)
Purchasing automatically closes a shipment for invoicing if it is within the invoice closing
tolerance at billing, when Payables matches invoices to purchase orders or receipts.
Invoice Matching
Select which information will be compared to the invoice when matching. All must match
within tolerance for the selected option.
Two-Way: Purchase order and invoice quantities as well as purchase order and invoice
unit prices must match within tolerance before the corresponding invoice can be paid.

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Purchase Orders
Chapter 7 - Page 33

The receipt close tolerance can be set to 0% to allow the system to automatically close
fully received lines.
Three-Way: Purchase order, receipt, and invoice quantities as well as purchase order and
invoice unit process must match within tolerance before the corresponding invoice can be
paid.
Four-Way: Purchase order, receipt, accepted, and invoice quantities as well as purchase
order and invoice unit prices must match within tolerance before the corresponding
invoice can be paid.
Accrue on Receipt
Check box to indicate that the items on this purchase order line should be accrued on 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.
Firm
A setting used with MRP to indicate to that module that it cannot change or suggest changes to
the details of this purchase order based on changed demand that has occurred since the order
was originally created.

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Purchase Orders
Chapter 7 - Page 34

Standard Purchase Order Shipment Status Tabbed Region

Standard Purchase Order Shipment Status


Tabbed Region
Shipments

More

Status
Num
Status
Ordered
Received
Canceled
Billed

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Standard Purchase Order Shipment - Status Tabbed Region


Num
The system will automatically generate a unique line number for each line you create.
Status
This status will be updated by the system based on actions taken by buyers, receivers or
accounts payable staff.
Ordered/Received/Canceled/Billed
Quantities will be displayed to indicate the quantities that have been ordered, received,
cancelled and billed. Quantities are updated through actions taken by buyers, receivers and
accounts payables staff.

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Purchase Orders
Chapter 7 - Page 35

Standard Purchase Order Shipment Receiving Controls Button

Standard Purchase Order Shipment


Receiving Controls Button
Standard Purchase
Order
HEADER
Receiving Controls
LINE

SHIPMENT

DISTRIBUTION

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Standard Purchase Order Shipment - Receiving Controls Button


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.

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Purchase Orders
Chapter 7 - Page 36

Entering Standard Purchase Order Distributions - Tabbed


Regions

Entering Standard Purchase Order


Distributions - Tabbed Regions

The distribution portion of the standard purchase


order is comprised of three tabbed regions:
Destination
More
Project

Details required internally to generate accounting


for the shipment.
Must be at least one distribution for each
shipment, but can be many distributions for each
shipment.

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Entering Standard Purchase Order Distributions - Tabbed Regions


Use the purchase order Distributions window to enter distribution information for purchase
order shipments and to view distributions that Purchasing has automatically created for you.
You can enter multiple distributions per shipment line. You can also view on-line requisitions
included on the purchase order enter paper requisition information in this window.

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Purchase Orders
Chapter 7 - Page 37

Standard Purchase Order Distribution Destination Tabbed Region

Standard Purchase Order Distribution


Destination Tabbed Region
Destination

More

Project

Num
Type
Requestor
Deliver-To/
Subinventory
Quantity
Charge Account
Accrual/Variance
Accounts

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Standard Purchase Order Distribution - Destination Tabbed Region


Num
The system will automatically generate a unique line number for each line you create.
Type
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.
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.
Requestor
Enter the name of the person requesting the goods or services. If the purchase order was
automatically created from approved requisition lines, this field would be populated with the
name of the requestor on the requisition.

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Purchase Orders
Chapter 7 - Page 38

Deliver-To/Subinventory
Enter the Deliver To location for this distribution. If the destination type is Inventory, you can
also enter the Subinventory.
Quantity
Enter the Quantity 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 remaining quantity you have not yet assigned to a distribution line.
Charge Account
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

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Purchase Orders
Chapter 7 - Page 39

Standard Purchase Order Distribution More Tabbed Region

Standard Purchase Order Distribution


More Tabbed Region
Destination

More

Project

Num
Requisition
Number/Line
Online

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Standard Purchase Order Distribution - More Tabbed Region


Num
The system will automatically generate a unique line number for each line you create.
Requisition Number/Line and Online
The Online check box indicates whether this distribution is part of an on-line requisition. If so,
Purchasing checks the box and displays the on-line requisition number and line number, 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, if entered.

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Purchase Orders
Chapter 7 - Page 40

Standard Purchase Order Distribution Project Tabbed Region

Standard Purchase Order Distribution


Project Tabbed Region
Destination

More

Project
Num
Project
Task
Expenditure
Type
Expenditure Org

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Standard Purchase Order Distribution - Project Tabbed Region


Num
The system will automatically generate a unique line number for each line you create.
Project/Task/Expenditure Type/Expenditure Org
If this purchase is being charged to a Project, enter the appropriate project, task, expenditure
type, expenditure org and expenditure item date.

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Purchase Orders
Chapter 7 - Page 41

Approve Standard Purchase Order

Approve Standard Purchase Order


Approve Document

Submit for Approval


Forward

OK
Approval is the last step in creating a Purchase Order.

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Approve Standard Purchase Order


Integration with Workflow
In Purchasing, all approvals are handled by Workflow. The Procurement Workflows are
predefined workflows embedded in Purchasing. Workflow uses the approval controls and
hierarchies you define during setup as the default approval processes.
Status
Your purchase order document will have the status Incomplete until you submit the document
for approval. If you do not have sufficient approval authority, the status will be set to In
Process and Workflow will forward the document to an appropriate approver. Once approval
is obtained, the status is changed to Approved.
Communicating Approved Purchase Orders to Suppliers
Depending on how the suppliers record has been defined, purchase orders may be sent by
printed document, facsimile, email, XML or through electronic data interchange (EDI). The
Approve Document window defaults the transmission method defined on the supplier, but you
can update these defaults for a particular purchase order.

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Purchase Orders
Chapter 7 - Page 42

Guided Demonstration - Create a Standard Purchase Order


(Required)
Responsibility: XXPurchasing, Vision Operations
(N) Supply Base > Suppliers
Enter an attachment on a supplier then create a standard purchase order.
Instructor Note: Ensure the PO: Automatic Document Sourcing profile option is set to No.
Add a Text Attachment to your Supplier
1.

Navigate to the Suppliers window

2.

(N) Supply Base > Suppliers

3.

Query XXIBM Corporation

4.

(I) Attachments

5.

Category = To Supplier

6.

Description = Misc T&C

7.

Data Type = Long Text

8.

Note = You decide

9.

Save

Create a Standard Purchase Order


10. Open the Purchase Orders window:
11. (N) Purchase Order > Purchase Orders

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12. Type = Standard Purchase Order

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13. Supplier = XXIBM Corporation


14. Ship-to = M1-Seattle

15. Bill-to = V1-New York

16. Description = XXComputer Hardware


17. (T) Items

Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 43

18. Enter the items according to the following table:

Num

Item

Quantity

Price

Promised Date

XXSoftware

10

450

Blank

XXMonitor

10

250

Blank

19. Save
Note: Need-by and Promised Date are only required for planned items. However, they are used
in supplier performance reports.
Enter Terms and Conditions
20. Navigate to the Terms and Conditions window:
21. (B) Terms
22. Payment = Immediate
23. Select the Confirming Order check box.
24. Acceptance Required = Checked
25. Acceptance is required by tomorrow.

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Note: The Send Notifications for Purchasing Documents concurrent request will send a
notification to you if acceptance has not been recorded prior to the date you specify in this field.
This request MUST be SCHEDULED to run in order for notifications to be sent!
26. Pay On = Blank

27. Add a note to the supplier. This note will be printed on the header of the purchase order.

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28. Save

29. Close the Terms and Conditions window to return to the Purchase Orders window.
Enter Shipments

30. Place cursor in Item field for XXSoftware item.


31. (B) Shipments

32. Enter the following shipments for the XXExpensed item.

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Purchase Orders
Chapter 7 - Page 44

Num

Org

Ship-To

UOM

Quantity

Promised

M1

M1-Seattle

Each

In 1 month

M1

M1-Seattle

Each

In 2 months

M1

M1-Seattle

Each

In 3 months

33. Save
34. (T) More
35. Enter information according to the following table:

Num

Receipt Close
Tolerance (%)

Invoice Close
Tolerance (%)

Match Approval
Level

Invoice Match
Option

2-Way

PO

2-Way

PO

2-Way

PO

36. Save

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Note: This is will be a 2-Way match and I dont anticipate performing any formal receiving.
Setting the Receipt Close Tolerance to 0% is a good idea in this case. Once the invoice is
matched to this purchase order, the status of the each shipment will automatically change to
closed. Once all shipments are received, the status of the line will change to closed. As a result,
no buyer intervention will be necessary to manually change the status of the line.
37. Close the Shipments window to return to the Purchase Orders window.

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38. Place cursor in Item field for the XXMonitor item.


39. (B) Shipments

40. Enter the following shipments for the XXMonitor item.

Num
1

Org

Ship-To

UOM

Quantity

Promised

M1

M1-Seattle

Each

In 1 month

M1

M1-Seattle

Each

In 2 months

M1

M1-Seattle

Each

In 3 months

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Purchase Orders
Chapter 7 - Page 45

41. Save
42. (T) More
43. Enter information according to the following table:

Num

Receipt Close
Tolerance (%)

Invoice Close
Tolerance (%)

Match Approval
Level

Invoice Match
Option

10

3-Way

PO

10

3-Way

PO

10

3-Way

PO

44. Save
45. Close the Shipments window to return to the Purchase Orders window.
46. Record your purchase order number.
Complete the Internal Distributions for the Expensed item
47. Click in the Item field for the XXSoftware item.
48. (B) Shipments
49. (B) Distributions

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50. Complete the internal distribution according to the following table:

Num

Type

Expense

Requestor

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Your name

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51. Save

Quantity

Charge

01-520-7530-0000-000

52. Close the Distributions window.


53. Repeat the steps above until EACH shipment has ONE AND ONLY ONE completed
internal distribution.
54. Save
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Purchase Orders
Chapter 7 - Page 46

Complete the Internal Distributions for the Inventory item


55. Place cursor in the Item field for the XXMonitor item.
56. (B) Shipments
57. (B) Distributions
58. Complete the internal distribution according to the following table:

Num

Type

Inventory

Requestor
Smith, Mr. Jonathon

Subinventory
Stores

Quantity
4

Note: The type of the item is Inventory. For Inventory items, the charge account cannot be
changed. Account generator builds it based on the accounts in the inventory organization!
59. Save
60. Close the Distributions window.
61. Repeat the steps above until EACH shipment has ONE AND ONLY ONE completed
internal distribution.
62. Save

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63. Close the Distributions and Shipments windows.


Approve the Purchase Order
64. Record your purchase order number.
65. (B) Approve

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66. Submit for Approval = Checked


67. Uncheck all other options

68. (B) OK in the Approve Document window.


69. (B) OK to close the note window.

Note: The standard messages on the notes fields may be easily changed using the Application
Developer responsibility.
Place your Purchase Order on the Navigator
Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 47

70. Place your Purchase Order on the Navigator


71. (M) File > Place on Navigator
72. Note that your attachment has been automatically copied from your supplier to the purchase
order header!
Verify Distribution Information
73. Query up your PO
74. Verify that each distribution for XXSoftware has requestor information recorded.
75. Verify that each distribution for XXMonitor has requestor and subinventory information is
recorded

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Purchase Orders
Chapter 7 - Page 48

Practice - Create a Standard Purchase Order


Overview
In this practice, you will do the following:

Create a standard purchase order for two defined items one expense item and one
inventory item.

Create multiple shipment lines and multiple distribution lines for one or both of the
items.

Run select reports relevant to standard purchase orders.

Assumptions

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Responsibility selected to complete this practice is Purchasing, Vision Operations


(USA).

Replace XX with your terminal number or initials.

Tasks
Log on to the System
Create Standard Purchase Order header
Set Purchase Order preferences

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Enter an expense item that you need to order


Enter shipments

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Enter distributions for the first shipment

Enter distributions for the second shipment


Enter an inventory item that you need to order
Enter shipments

Enter distributions for the first shipment

Enter distributions for the second shipment


Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 49

Submit your purchase order for approval


Run the Printed Purchase Orders Report (Landscape)
Run the Purchasing Activity Register

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Purchase Orders
Chapter 7 - Page 50

Solution - Create a Standard Purchase Order


Tasks
Log on to the System
User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations
Create Standard Purchase Order header
1.

Navigate to the Purchase Orders window

2.

(N) Purchase Orders > Purchase Orders


Type = Standard Purchase Order
Supplier = Advanced Network Devices
Site = Santa Clara
Ship-to = M1-Seattle
Bill-to = V1-New York City

Navigate to the Terms and Conditions window

(B) Terms
Confirming Order = Check box
Acceptance Required = Check box
By = One week from today
Supplier Note = Add a note to your supplier

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Chapter 7 - Page 51

3.

Close Terms and Conditions window

4.

Save

Set Purchase Order preferences


5.

Navigate to the Purchase Order Preferences window

(M) Tools > Preferences


Requestor = Adams, Mr. Brian

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6.

Apply

7.

Close the Purchase Order Preferences window

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Enter an expense item that you need to order


8.

(T) Items
Num = 1
Item = f30000

9.

(B) OK to Blanket purchase order warning message


Quantity = 10

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Purchase Orders
Chapter 7 - Page 52

Enter shipments
10. Navigate to the Shipments window

(B) Shipments

Enter the following shipments for this item:

Num

Org

Ship-to

UOM

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Quantity

M1

M1-Seattle

Each

M1

M1-Seattle

Each

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Need-By

In 1 week

In 2 weeks

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Purchase Orders
Chapter 7 - Page 53

11. Save
Enter distributions for the first shipment
12. Place cursor on the first shipment line
13. Navigate to the Distributions window

(B) Distributions
Num = 1
Quantity = 2
Charge Account = Allow to default

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14. Add another distribution


Num = 2
Quantity = 2 (should have defaulted)
Charge Account = Allow to default, then override the department value to 730

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Purchase Orders
Chapter 7 - Page 54

15. Save
Enter distributions for the second shipment
16. Place cursor on the second shipment line
17. Navigate to the Distributions window

(B) Distributions
Num = 1
Quantity = 6
Charge Account = Allow to default

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18. Save

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Enter an inventory item that you need to order


19. Close the Distributions window and then the Shipments window (returning to the Purchase
Orders window
20. (T) Items
Num = 2
Item = AS72111

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Purchase Orders
Chapter 7 - Page 55

Quantity = 10
Price = $1,400
Enter shipments
21. Navigate to the Shipments window

(B) Shipments

Enter the following shipments for this item:

Num

Org

Ship-to

UOM

Quantity

Need-By

M1

M1-Seattle

Each

In 1 week

M1

M1-Seattle

Each

In 2 weeks

22. Save
Enter distributions for the first shipment
23. Place cursor on the first shipment line
24. Navigate to the Distributions window

(B) Distributions
Num = 1
Subinventory = Stores
Quantity = 4
Charge Account = Allow to default and try to override. Why cant you override?

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Purchase Orders
Chapter 7 - Page 56

25. Save
Enter distributions for the second shipment
26. Place cursor on the second shipment line
27. Navigate to the Distributions window

(B) Distributions
Num = 1
Subinventory = Stores
Quantity = 6

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28. Save

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Submit your purchase order for approval

29. Close the Distributions window, then the Shipments window (returning to the Purchase
Orders window)
30. Navigate to the Submit for Approval window

(B) Approve
Submit for Approval = Check box
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Purchase Orders
Chapter 7 - Page 57

Uncheck all other options

31. (B) OK
32. (B) OK

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33. Ensure that the status on the purchase order header is Approved
Run the Printed Purchase Orders Report (Landscape)
34. Navigate to the Submit Request window

(N) Reports > Run


Name = Printed Purchase Order Report(Landscape)
Print Selection = All
Purchase Order Numbers From = Your standard purchase order number
[Purchase Order Numbers] To = Your standard purchase order number

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Chapter 7 - Page 58

35. (B) OK

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36. (B) Submit


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Purchase Orders
Chapter 7 - Page 59

37. (B) No
38. Monitor progress and view output when complete

(M) View > Requests

39. (B) Find


40. Once the request completes, (B) View Output
Run the Purchasing Activity Register
41. Navigate to the Submit Request window

(N) Reports > Run


Name = Purchasing Activity Register
Creation Dates From and To = Todays date
Supplier = Advanced Network Devices

42. (B) OK

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Purchase Orders
Chapter 7 - Page 60

43. (B) Submit


44. (B) No
45. Monitor progress and view output when complete

(M) View > Requests

46. (B) Find

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47. Once the request completes, (B) View Output

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Purchase Orders
Chapter 7 - Page 61

Agenda

Agenda

Overview of purchase orders


Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Maintain/adjust purchase orders
Identify key standard reports
Understand setup options
Understand additional
implementation considerations

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Purchase Orders
Chapter 7 - Page 62

When to Use a Blanket Purchase Agreement

When to Use a Blanket Purchase


Agreement
Blanket Purchase
Agreement
Long-term agreement

Header

Details of goods/services
are known

Lines
Blanket
Release

Dates of delivery are not known

Shipment
Distribution

Accounts and dollars are


not known

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When to Use a Blanket Purchase Agreement


Blanket purchase agreements and releases allow you to negotiate stable, long-term contracts
while maintaining flexible delivery schedules and order quantity commitments. You create
blanket purchase agreements when you know the details of the goods or services you plan to
buy from a specific supplier, but you do not yet know delivery schedule details. You can use
blanket purchase agreements to specify negotiated prices for your items before actually
purchasing them.

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A blanket purchase agreement is a type of purchase order you issue before you request actual
delivery of goods or services. You normally create a blanket purchase agreement to document
a long-term supplier agreement.
A blanket release is an actual order of goods or services you issue against a blanket purchase
agreement. The blanket purchase agreement determines the characteristics and the prices of
the items. The release can be created manually or automatically.

Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 63

Blanket Releases

Blanket Releases
Releases can be created:
Manually
Automatically
Manual

Demand
generated
outside
Purchasing

Requisition

Create Releases
Process

Blanket
Release

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Blanket Releases
Once you have an approved blanket agreement you need only create a release to authorize
delivery of goods or services. You can create blanket purchase agreement releases using the
following methods:
The Releases window
PO Create Documents workflow
AutoCreate window
The Create Releases process
Manually Created Releases
You can manually enter releases against active blanket purchase agreements. You can set up
purchasing to warn you if a blanket purchase agreement exists for items that you try to
requisition. Because the blanket purchase agreement is in place, you can create a blanket
release instead of submitting a requisition. If you choose not to enable to warn if a blanket
purchase agreement exists, can submit requisitions and the buyer can create the blanket release.
Automatically Created Releases

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Purchase Orders
Chapter 7 - Page 64

Buyers can expedite creation of releases using the AutoCreate window or by submitting the
Create Releases program. In addition, the PO Create Documents workflow can be set up to
automatically create blanket purchase agreement releases for requisitions that are submitted,
regardless of whether their origin is the Requisitions window or iProcurement.

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Purchase Orders
Chapter 7 - Page 65

Blanket Purchase Agreements Additional Information Entered

Blanket Purchase Agreements Additional


Information Entered
Additional information is
entered for blanket purchase
agreements in the header, line
and price breaks purchase
order elements windows.

Standard Purchase
Order
HEADER

LINE

SHIPMENT
PRICE BREAKS

DISTRIBUTION

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Blanket Purchase Agreements - Additional Information Entered


Purchasing Responsibility
(N) Purchase Orders > Purchase Orders

Focus of discussion - Rather than reiterate the many fields that have already been discussed
during the creation of a standard purchase order, this section will highlight the differences
between the blanket purchase agreement and the standard purchase order. Your instructor will
review the previously discussed fields as needed during the demonstration of creating a blanket
purchase agreement.

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Purchase Orders
Chapter 7 - Page 66

Blanket Purchase Agreements Additional Information - Header

Blanket Purchase Agreements Additional


Information - Header
Header

Lines

Price Breaks

Amount Agreed
Released
Terms and
Conditions

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Blanket Purchase Agreements: Additional Information - Header


Amount Agreed
When creating a blanket purchase agreement, you can indicate the dollar amount of the
agreement.
Released
The dollar value displayed in this field is the total dollar value of all releases issued against the
blanket purchase agreement.
Terms and Conditions
You can access the Agreement Controls area of the Terms button. The effective start and stop
dates for the agreement can be entered. Releases can only be created during these dates when
the blanket is effective.
Amount Limit
You can optionally change the defaulted value for the Amount Limit. Initially this value is
equal to the Amount Agreed. You may provide a higher value in the Amount Limit field
which will allow the total released amount to exceed the Amount Agreed. If the total amount
released exceeds the Amount Limit, the release cannot be approved.

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Purchase Orders
Chapter 7 - Page 67

Minimum Release
You can also specify a Minimum Release dollar value which will require that the dollar
amount for individual releases exceeds the Minimum Release amount set. Often you establish
the Minimum Release amount based on your estimated costs of processing individual releases.
For example, if the estimated cost of processing releases is $25, then the user may set the
Minimum Release amount to $25.

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Purchase Orders
Chapter 7 - Page 68

Blanket Purchase Agreements Additional Information - Lines

Blanket Purchase Agreements Additional


Information - Lines
Header

Lines

Price Breaks

Items
Price Reference
Reference
Documents
Agreement

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Blanket Purchase Agreements: Additional Information - Lines


Items Tabbed Region
Notice that the Quantity field has been grayed out. By definition of a blanket purchase
agreement, you are uncertain of the quantities that will be needed of each item listed. The
price that is entered for each item is for an implied quantity of one. Reduced pricing that may
be available when purchasing larger quantities will be entered through the Price Breaks button
that will be discussed shortly.
Price Reference Tabbed Region
The Allow Price Override check box is used for blanket purchase agreements and planned
purchase orders only. This check box indicates that the release price can be different from the
price on the purchase agreement or purchase order line. If you allow price override, enter the
dollar amount of the Price Limit. This is the maximum price per item you allow for the item
on this agreement 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. 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 by default. If the actual price is less than

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Purchase Orders
Chapter 7 - Page 69

the list price, then the field is checked as the default. You can accept the default value or
change it.
Reference Documents Tabbed Region
This tabbed region is generally not used on blanket purchase agreements unless the blanket
was created by copying a quotation. Copying purchasing documents will be discussed later in
this module.
Agreement Tabbed Region
You can establish controls at the line level if desired. Additional controls such as minimum
release amount, quantity agreed and amount agreed can be established for individual purchase
agreement lines. Whether or not you have agreed to minimum quantities or amounts, the
system will automatically keep track on this tabbed region of the quantities and amounts
actually released against the blanket. Internal quantity and amount targets not formally
negotiated as agreed to quantities or amounts with the supplier should not be entered in the
agreement. Entry of internal targets could be interpreted and enforced as legal binding to the
user.
The Cumulative Pricing check box will be enabled by default depending on a setup option in
the Purchasing Options of the default value hierarchy. The default may be changed depending
on the actual pricing negotiated with the supplier.

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Purchase Orders
Chapter 7 - Page 70

Blanket Purchase Agreements Additional Information - Price


Breaks

Blanket Purchase Agreements Additional


Information - Price Breaks
Header

Lines

Price Breaks
Quantity
Break Price
Discount (%)

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Blanket Purchase Agreements: Additional Information - Price Breaks


After entering the Purchase Orders window and choosing a Type of Blanket Purchase
Agreement, the button normally titled Shipments changes to Price Breaks. This form
adjustment is necessary to support reduced pricing agreements for volume purchases.
Quantity
This quantity is not an ordered quantity, but simply a quantity that if purchased would result in
reduced pricing. The quantity indicated may need to be reached on an individual release
(when the Cumulative Pricing check box on the Agreement tabbed region previously discussed
is unchecked) or may be able to be reached through an accumulation of releases issued against
the blanket purchase agreement line (Cumulative Pricing check box is checked).
Break Price
You will enter the reduced price that will be paid for each quantity listed.
Discount (%)
If a Break Price is entered, the Discount (%) field will display the percentage that this price is
off the price listed on the Items tabbed region for the purchase of an implied quantity of one.

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Purchase Orders
Chapter 7 - Page 71

Notification Controls

Notification Controls

Blanket Purchase Agreement


Amount Agreed $5,000,000
Effective Dates Jan 1 to Dec 31

Amount Not Released


50% in the
six months

1st

Amount Released
1st

$2M in the
three months

Expiration
Three months
before expiration

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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 Alert (or e-mail).
Amount Not Released
This control notifies you when the total planned amount released to date is less than a preset
amount or is less than the Amount Agreed on the blanket purchase agreement header
multiplied by a preset percentage. For example, a user can enter an Effective To date for the
Amount Not Released notification control of June 30. The user could further indicate a
percentage of 50% (which the system will further calculate the dollar amount of $2.5M for this
percentage and display it in the Amount field). The user would then be notified if on June 30,
the total amount of releases did not exceed $2.5M. Rather than indicating a percentage, the
user can provide a dollar amount and the system will calculate the percentage. Additionally,
specified percentages may be set based on prior spending trends rather than passage of time as

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Chapter 7 - Page 72

appears to be the case in the example provided. You may also wish to establish multiple
Amount Not Released notification controls throughout the period of the agreement.
Amount Released
This control notifies you when the total planned amount released to date is more than a preset
amount or is less than the Amount Agreed on the blanket purchase agreement header
multiplied by a preset percentage. For example, a user can enter Effective From/To dates for
the Amount Released notification control of January 1 to March 31. Assume the user entered
$2M as the amount (which the system will further calculate the percentage of 40% by relating
the $2M to the $5M Amount Agreed). The user would then be notified if and when between
January 1 and March 31, the total amount of releases exceeds the $2M. Similar to the
discussion for the Amount Not Released, you may instead specify a percentage, set the amount
based on prior spending trends rather than the passage of time, and may also establish multiple
Amount Released notification controls throughout the period of the agreement.
Expiration
This control notifies you that the agreement is approaching expiration. The notification is sent
at specified dates prior to the effective end date of the agreement. For example, the Warning
Delay could be set at 90 for an agreement with a one year length. The system will then send a
notification to the Buyer 90 days prior to the expiration of the one year agreement that the
expiration is approaching. You often will set multiple Expiration notification controls to
ensure that sufficient progress is being made toward negotiation of a new agreement with this
supplier or a new supplier(s). This control is especially effective for items that should never be
purchased outside of agreements.

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Purchase Orders
Chapter 7 - Page 73

Approve Blanket Purchase Agreement

Approve Blanket Purchase Agreement


Approve Document

Submit for Approval


Forward

OK
Approval is the last step in creating a Blanket Purchase Agreement

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Approve Blanket Purchase Agreement


Similar to standard purchase orders, blanket purchase agreements need to be approved. Once
approved, blanket releases can then be issued against the blanket purchase agreement.

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Purchase Orders
Chapter 7 - Page 74

Guided Demonstration - Create a Blanket Purchase Agreement


(Required)
Responsibility: XXPurchasing, Vision Operations
(N) Purchase Orders > Purchase Orders
Create a Blanket Purchase Agreement
1.

Type = Blanket Purchase Agreement

2.

Supplier = XXIBM Corporation

3.

Site = NEW YORK

4.

Amount Agreed = 10000

5.

Description = XXSupplies

Specify Terms and Conditions


6.

(B) Terms

7.

Effective = Today + 7 days

8.

Amount Limit = 11000

9.

Save

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Note: The Amount Limit is the REAL control of whether or not releases against this blanket
may be approved.
10. (T) Items
11. Select items according to the following table:

Num
1
2

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Item

Category

Description

UOM

XXSoftware

XX.COMPUTER

Expensed Item

Each

XXMonitor

XX.COMPUTER

Inventory Item

Each

Specify Price Breaks


12. (B) Price Breaks

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Purchase Orders
Chapter 7 - Page 75

13. Enter the following price break information FOR EACH item!

Num

UOM

Quantity

Price

Org

Ship-To

Discount%

Each

10

Defaults

M1

M1 - Seattle

10

Each

25

Defaults

M1

M1 - Seattle

15

Each

50

Defaults

M1

M1 - Seattle

20

14. Save
15. Close the Price Breaks window.
Specify Notification Controls
16. Open the Notification Controls window:
17. (M) Tools > Notification Control
18. Condition = Expiration
Note: If the Warning Delay field does not become enabled, double check to make sure you
entered effective dates in the Terms and Conditions window!
19. In the From and To fields, set for 30, 60, and 90 days.

Condition

Warning Delay

From

Expiration

Defaults

Expiration

Defaults

Expiration

Defaults

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20. Save

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To

Defaults
Defaults
Defaults

21. (B) Done

Note: These Notifications are controlled using Oracle Alerts. The alerts must be activated in
order for the conditions to be checked and the notifications to be sent.
22. Record your Blanket Purchase Agreement number.
23. (B) Approve

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Purchase Orders
Chapter 7 - Page 76

24. Submit for Approval = Checked


25. Uncheck all other options
26. (B) OK
27. (B) OK in the Note window
Place your Purchase Order on the Navigator
28. Place your Purchase Order on the Navigator
29. (M) File > Place on Navigator
30. Close windows until you are back at the Navigator

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Purchase Orders
Chapter 7 - Page 77

Blanket Purchase Agreement and Blanket Releases

Blanket Purchase Agreement and Blanket


Releases
Release #/$s

Blanket Purchase
Agreement

Cumulative
Release $s

#101 $ 5,000

$ 5,000

#120 $12,000

$17,000

#208 $ 9,000

$26,000

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Blanket Purchase Agreement and Blanket Releases


Once a blanket purchase agreement has been approved, you can begin creating blanket releases
against the agreement. Suppliers will be provided the additional information, such as
quantities and shipping details, needed to make actual delivery of the items on the agreement.
Details regarding releases are covered in the next few pages. Once you have provided
complete shipment and distribution detail, the release needs to be approved before it is sent to
the supplier. The approval process for releases is the same as the approval process for the
blanket purchase agreement.

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Purchase Orders
Chapter 7 - Page 78

Blanket Releases Structure - Header

Blanket Releases Structure - Header

Release Header

Shipment 1

Distribution 1

Blanket #
Release #
Supplier/Site
Buyer
Status
Total
Acceptance Reqd

Distribution 2

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Blanket Releases Structure - Header


Release Header
When creating a new release, you will enter the blanket purchase agreement number. A list of
values is available to assist you in selecting the appropriate agreement. Once selected, the next
available release number will be assigned and the supplier, site and buyer from the agreement
will be displayed. You can override the default as long as the Enforce Buyer Name option is
not enabled in the Purchasing Options window.

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The status will be updated based on actions taken in the system. A total amount for the release
will be displayed as items are ordered in the Shipments window. You can further indicate to
MRP whether this release is firm or can be changed and whether acceptance is requested of the
supplier to acknowledge that they received the release.
Receiving Controls Button
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.
Agreement Button
Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 79

You can access basic information regarding the blanket purchase agreement through the
Agreement button. For example, you will see amount agreed, buyer, amount released, status,
effective dates and various payment terms from the blanket purchase agreement.

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Purchase Orders
Chapter 7 - Page 80

Blanket Releases Structure Shipments and Distributions

Blanket Releases Structure Shipments and


Distributions
Release Header

Tabbed Regions
Shipments
More
Status
Item
Tabbed Regions
Destination
More
Project

Shipment 1

Distribution 1

Distribution 2

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Blanket Releases Structure - Shipments and Distributions


Shipments Tabbed Region
Entry into this tabbed region is exactly like entry of shipments information on the shipments
tabbed region of the standard purchase order with one exception. When you enter the Line
field, you are simply entering the line number for the item you want to order from the blanket
purchase agreement. Unless a user knows what the line number is, you should access the list
of values which will provide the item name and description in addition to the line number.
Once the line number is selected, the associated item name and description are displayed near
the bottom of the window.
More, Status and Item Tabbed Region
Entry into these tabbed regions is exactly like entry of shipments information on the the same
tabbed regions of the standard purchase order.
Distributions Window
Entry into all tabbed regions of the distributions window is exactly like entry of distributions
information on the the same tabbed regions of the standard purchase order.

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Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 81

Guided Demonstration - Create a Blanket Release (Required)


Responsibility: XXPurchasing, Vision Operations
(N) Purchase Orders > Releases
Create and Approve a Release
1.

In the PO, Rev field, use the list of values to select your blanket purchase agreement
number.

2.

(T) Shipments

3.

Place cursor in the Line field

4.

[Ctrl + L] to invoke the List of Values

5.

Note the lines you see are the two lines from your Blanket Purchase Agreement!

6.

Select the XXSoftware item.

7.

(B) OK

8.

Organization = M1

9.

Ship-To = M1-Seattle

10. Quantity = 10
11. Promised = Todays date
12. Save
13. (B) Approve
14. Submit for Approval = Checked

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15. Uncheck all other options

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16. (B) OK to approve the Release

17. Click OK to close the note window.


18. (B) Agreement

19. Note the total amount released against the blanket purchase agreement.

Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 82

Practice - Create a Blanket Purchase Agreement and Blanket


Release
Overview
In this practice, you will do the following:

Create a blanket purchase agreement for two items which will establish pricing for the
items, although the quantity and delivery dates/locations are not known.

Create a blanket release against the agreement for your first order of these items.

Assumptions

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Responsibility selected to complete this practice is Purchasing, Vision Operations


(USA).

Replace XX with your terminal number or initials.

Tasks
Log on to the System
Create a blanket purchase agreement
Enter your first item - Paper
Enter price breaks for volume purchases
Enter your second item - Desk
Enter price breaks for volume purchases

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Enter notification controls so that youll be warned by the system of certain


situations that are either expected or might occur with this blanket purchase
agreement.
Submit your purchase agreement for approval
Issue a blanket release to place your first order against the agreement
Submit your blanket release for approval

Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 83

Increase your quantity ordered to 3 so that the release will be above the minimum
release amount
Submit your blanket release for approval
Return to the Blanket Purchase Agreement to view how it was updated as a result
of the release
Run the Purchase Order and Releases Detail Report

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Purchase Orders
Chapter 7 - Page 84

Solution - Create a Blanket Purchase Agreement and Blanket


Release
Log on to the System
User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations
Create a blanket purchase agreement
1.

Navigate to the Purchase Orders window

2.

(N) Purchase Orders > Purchase Orders


Type = Blanket Purchase Agreement
Supplier = Southern Office Supplies
Site = SOS MAIN
Ship-to = M1-Seattle
Bill-to = V1-New York City
Amt Agreed = $20,000

Navigate to the Terms and Conditions window

(B) Terms
Pay On = Blank
Agreement Controls/Effective Dates = Enter dates starting Today and extending for
one year
Amount Limit = $21,000
Minimum Release = $50

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Purchase Orders
Chapter 7 - Page 85

3.

Close Terms and Conditions window

4.

Save

Enter your first item - Paper


5.

(T) Items
Num = 1
Item = f20000

Enter price breaks for volume purchases


6.

Navigate to the Price Breaks window

(B) Price Breaks

Enter the following price breaks for this item:

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Num
1
2
3

7.

Org

Ship-to

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Quantity

Break Price

M1

M1-Seattle

10

$19.00

M1

M1-Seattle

20

$18.00

M1

M1-Seattle

30

$17.00

Save
Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 86

Enter your second item - Desk


8.

(T) Items
Num = 1
Item = f11000
Price = $1,000.00

Enter price breaks for volume purchases


9.

Navigate to the Price Breaks window

(B) Price Breaks

Enter the following price breaks for this item

Num

Org

Ship-to

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Quantity

Break Price

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M1

M1-Seattle

$950.00

M1

M1-Seattle

10

$900.00

M1

M1-Seattle

15

$850.00

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10. Save

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Purchase Orders
Chapter 7 - Page 87

Enter notification controls so that youll be warned by the system of certain


situations that are either expected or might occur with this blanket purchase
agreement.
11. Close the Price Breaks window
12. Navigate to the Notification Controls window

(M) Tools > Notification Control

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Enter controls to warn you of upcoming expiration of the agreement 120 days prior and 60 days
prior to the effective end date.

Condition
Expiration

Warning Delay
120

From
Defaults

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Expiration

60

Defaults

To

Amount

Defaults

N/A

N/A

Defaults

N/A

N/A

Enter controls to warn you if by 6 months into the agreement, you havent released at least 50%
of the amount agreed.

Condition

Amount Not Released

Warning Delay

N/A

From
Today

To
Six Months from
Today

Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 88

%
50

Amount
Default

13. (B) Done


14. (B) OK
Submit your purchase agreement for approval
15. Navigate to the Submit for Approval window

(B) Approve
Submit for Approval = Check box
Uncheck all other options

16. (B) OK
17. (B) OK

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18. Ensure that the status on the purchase order header is Approved and record your blanket
number __________
Issue a blanket release to place your first order against the agreement
19. Navigate to the Releases window

(N) Purchase Orders > Releases


PO, Rev = Your PO number from the blanket agreement

20. (T) Shipments


Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 89

Line = open the list of values and select the f20000-Paper item
Quantity = 2
Need-By = One week from today

Submit your blanket release for approval


21. Navigate to the Submit for Approval window

(B) Approve

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Purchase Orders
Chapter 7 - Page 90

22. Why cant it be approved?


23. (B) OK
Increase your quantity ordered to 3 so that the release will be above the minimum
release amount
24. Place your cursor in Quantity field and increase to 3
25. Save
Submit your blanket release for approval
26. Navigate to the Submit for Approval window

(B) Approve
Submit for Approval = Check box
Uncheck all other options

27. (B) OK
28. (B) OK
Return to the Blanket Purchase Agreement to view how it was updated as a result
of the release
29. Navigate to the Purchase Orders window

(N) Purchase Orders > Purchase Orders

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30. Using either find or query functionality, locate your blanket purchase agreement
31. Notice the value in the Released field is $60 the amount of your first release.

32. What would happen to this value if you issue another release with a value of $1,800?

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Purchase Orders
Chapter 7 - Page 91

Run the Purchase Order and Releases Detail Report


33. Navigate to the Submit Request window

(N) Reports > Run


Name = Purchase Order and Releases Detail Report
Purchase Order Numbers From = Your blanket purchase agreement number
[Purchase Order Numbers] To = Your blanket purchase agreement number

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Purchase Orders
Chapter 7 - Page 92

34. (B) OK

35. (B) Submit


36. (B) No
37. Monitor progress and view output when complete

(M) View > Requests

38. (B) Find

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39. Once the request completes, (B) View Output

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Purchase Orders
Chapter 7 - Page 93

Agenda

Agenda

Overview of purchase orders


Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Maintain/adjust purchase orders
Identify key standard reports
Understand setup options
Understand additional
implementation considerations

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Purchase Orders
Chapter 7 - Page 94

When to Use a Contract Purchase Agreement

When to Use a Contract Purchase


Agreement
Contract Purchase Agreement:
Terms and conditions are known
Details of goods or services are not known
Reference contract purchase agreements directly
on standard purchase order lines

Contract purchase
agreement

Standard PO 1

Delivery 1

Standard PO 2

Delivery 2

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When to Use a Contract Purchase Agreement


Definition
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. A contract
purchase agreement is an agreement between you and a supplier for unspecified goods or
services. This agreement may include terms and conditions, committed amount and an
effective and expiration date. Contract purchase agreements are referenced on standard
purchase order lines. Purchasing monitors the amount you have spent against contract
purchase agreements.

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Focus of discussion
Rather than reiterate the many fields that have already been discussed during the creation of a
standard purchase order, this section will highlight the differences between the contract
purchase agreement and the standard purchase order. Your instructor will review the
previously discussed fields as needed during the demonstration of creating a contract purchase
agreement.

Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 95

Contract Purchase Agreements Additional Information Entered

Contract Purchase Agreements Additional


Information Entered
Additional information is entered
for contract purchase agreements
in the header element window.

Contract Purchase
Agreement

Once the contract is approved,


you issue standard purchase
orders referencing the contract
through the Line windows/Reference
Documents tabbed region.

Header

Standard PO
Header
Line
Shipment
Distribution

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Contract Purchase Agreements: Additional Information Entered


Purchasing Responsibility
(N) Purchase Orders > Purchase Orders
Header
This agreement may include terms and conditions, committed amount, and effective and
expiration dates.
Amount Agreed
When creating a contract purchase agreement, you can indicate the dollar amount of the
agreement.
Released
The dollar value displayed in this field is the total dollar value of all standard purchase order
lines referencing the contract.
Terms and Conditions
You can access the Agreement Controls area of the Terms button. The effective start and stop
dates for the contract can be entered. Standard purchase orders can only reference the contract
during its effective dates. Part of the terms and conditions could include a percentage discount

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Purchase Orders
Chapter 7 - Page 96

off list prices for all products the supplier sells or different discounts for different groups of
products. For example, maybe theyll give you a 10% discount on equipment and a 20%
discount on office supplies. You can optionally change the defaulted value for the Amount
Limit. Initially this value is equal to the Amount Agreed. You may provide a higher value in
the Amount Limit field which will allow the released amount to total in excess of the Amount
Agreed, but not higher than the Amount Limit. Compliance with agreed upon terms and
conditions will be monitored after purchases are made to ensure things like item pricing or
delivery times are in agreement with any discounts stated in the contract.
Line, Shipment and Distribution Windows
Although these windows appear as part of the Purchase Order form, you cannot enter these
details on a contract purchase agreement. These details will be provided once the contract is
approved as standard purchase orders are issued with reference to the contract.

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Purchase Orders
Chapter 7 - Page 97

Standard Purchase Order Line Reference Documents Tabbed


Region

Standard Purchase Order Line Reference


Documents Tabbed Region
Standard Purchase
Order

Items
Price Reference
Reference Documents

HEADER

Num, Contract, Quotation,


Line, Quotation Type,
Supplier Quotation

LINE

More
SHIPMENT

DISTRIBUTION

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Standard Purchase Order Line - Reference Documents Tabbed Region


Contract
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 expiration 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
after the purchase order is approved. Purchasing lists only those contracts with the same
supplier as the one on your standard purchase order.

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Automating Purchase Order Generation


Automatic generation of standard purchase orders referencing contract purchase agreements
can be done using the PO Create Documents workflow. For more information see the
Automatic Document Creation topic or refer to the Workflow for Creating Purchase Orders
and Releases topic in the Purchasing Users Guide.
Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 98

Guided Demonstration - Create a Contract Purchase Agreement


(Required)
Responsibility: XXPurchasing, Vision Operations
(N) Purchase Orders > Purchase Orders
Create a Contract Purchase Order
1.

Type = Contract Purchase Agreement

2.

Supplier = XXIBM Corporation

3.

Site = NEW YORK

4.

Ship-To = M1-Seattle

5.

Bill-To = V1-New York

6.

Amount Agreed = 10000

7.

Save

8.

Record the number of your Contract Purchase Agreement.

Enter Terms and Conditions


9.

(B) Terms

10. Payment Terms = Immediate


11. Effective From = Today
12. Effective To = One week from today
13. Amount Limit = 10000

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14. Save

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15. Close the Terms and Conditions window.


Approve the Document
16. (B) Approve

17. Submit for Approval = Checked


18. Uncheck all other options

Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 99

19. (B) OK
20. (B) OK to close the note window.
Place your Purchase Order on the Navigator
21. Place your Purchase Order on the Navigator
22. (M) File > Place on Navigator
23. Close windows until you are back at the Navigator
Associate with Contract with Standard Purchase Order Lines
24. Create a standard purchase order.
25. Select the Reference Documents tab and enter the contract agreement number.
26. Save and approve your purchase order.
27. Record the number of your standard purchase order.
Note: If the total amount of the purchase orders associated with the contract exceeds the
contract, the purchase order cannot be approved.

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Purchase Orders
Chapter 7 - Page 100

Practice - Create a Contract Purchase Agreement


Overview
In this practice, you will do the following:

Create a contract purchase agreement to establish general terms and conditions with this
supplier. Items, quantities and delivery dates/locations are not known.

Create a standard purchase order referencing the contract.

Assumptions

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Responsibility selected to complete this practice is Purchasing, Vision Operations


(USA).

Replace XX with your terminal number or initials.

Tasks
Log on to the System
Create a contract purchase agreement

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Submit your contract agreement for approval

Issue a standard purchase order referencing the contract


Enter an expense item that you need to order

Submit your standard purchase order for approval

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Return to the Contract Purchase Agreement to view how it was updated as a


result of the release
Run the Contract Status Report

Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 101

Solution - Create a Contract Purchase Agreement


Log on to the System
User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations
Create a contract purchase agreement
1.

Navigate to the Purchase Orders window

2.

(N) Purchase Orders > Purchase Orders


Type = Contract Purchase Agreement
Supplier = Consolidated Supplies
Site = DALLAS
Ship-to = M1-Seattle
Bill-to = V1-New York City
Amt Agreed = $10,000

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Navigate to the Terms and Conditions window

(B) Terms
Payment Terms = Immediate
Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 102

Agreement Controls/Effective Dates = Enter dates starting Today and extending for
six months
Amount Limit = $10,000

3.

Close Terms and Conditions window

4.

Save

Submit your contract agreement for approval


5.

Navigate to the Submit for Approval window

(B) Approve
Submit for Approval = Check box
Uncheck all other options

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6.

(B) OK

7.

(B) OK

8.

Ensure that the status on the purchase order header is Approved and record your contract
number __________

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Issue a standard purchase order referencing the contract


9.

Navigate to the Purchase Orders window

(N) Purchase Orders > Purchase Orders


Type = Standard Purchase Order
Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 103

Supplier = Consolidated Supplies


Site = DALLAS
Ship-to = M1-Seattle
Bill-to = V1-New York City

Enter an expense item that you need to order


10. (T) Items
Num = 1
Item = AS80001
Quantity = 10
Price = $50.00
Need-By = Two weeks from today
11. (T) Reference Documents
Contract = Your PO number that was assigned to the contract.

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12. Enter shipments for this item

(B) Shipments
Org = M5
Ship-To = M5-Denver

13. Enter distributions for this shipment


Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 104

(B) Distributions
Subinventory = Stores

14. Save
Submit your standard purchase order for approval
15. Navigate to the Submit for Approval window

(B) Approve
Submit for Approval = Check box
Uncheck all other options

16. (B) OK
17. (B) OK
18. Ensure that the status on the purchase order header is Approved and record your contract
number __________
Return to the Contract Purchase Agreement to view how it was updated as a
result of the release
19. Navigate to the Purchase Orders window

(N) Purchase Orders > Purchase Orders

20. Using either find or query functionality, locate your contract purchase agreement

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21. Notice the value in the Released field is $500 the amount of your first release.

22. What would happen to this value if you issue another release with a value of $2,000?

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Purchase Orders
Chapter 7 - Page 105

Run the Contract Status Report


23. Navigate to the Submit Request window

(N) Reports > Run


Name = Contract Status Report
PO Numbers From and To = Your contract purchase agreement number

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24. (B) OK

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Chapter 7 - Page 106

25. (B) Submit


26. (B) No
27. Monitor progress and view output when complete

(M) View > Requests

28. (B) Find

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29. Once the request completes, (B) View Output

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Purchase Orders
Chapter 7 - Page 107

Agenda

Agenda

Overview of purchase orders


Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Maintain/adjust purchase orders
Identify key standard reports
Understand setup options
Understand additional
implementation considerations

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Purchase Orders
Chapter 7 - Page 108

Purchase Order Inquiry

Purchase Order Inquiry

Use the Purchase Order Summary window


Optionally create a custom user layout of form

Use the Tools menu to view associated

Requisitions
Receipts
Invoices
Action History

Use the Purchase Order window


Find functionality
Query functionality

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Purchase Order Inquiry


You will frequently need to find information from a purchase order. Several options are
available to assist you in this effort.

Use the Purchase Order Summary Windows


You can enter a variety of search criteria to locate records at the header, line, shipment or
distribution levels of the purchase order. Buttons located at the bottom of the form allow you
to view more or less detail than the level at which you initially searched. For example, assume
you initially searched for shipment lines. From there you can move higher on the purchase
order to view items or you can drill down to view distributions. Optionally, you can create a
custom user layout of this form using Oracles folder technology. Custom layouts can be
defined as the default folder and can be shared with others.

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Use the Tools Menu to View Associated Records


From the purchase order lines, you can view associated requisitions, receipts, and invoices.
Some of the associated documents can only be viewed when query results are at a particular
level of the purchase order. For example, you cannot view associated requisitions when
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Purchase Orders
Chapter 7 - Page 109

viewing purchase order query results at the header level. Additionally, you can view a history
of activities performed on each document. This functionality is available through the Tools
menu, View Action History option on many windows. Activities will be listed in
chronological order with the most recent activity appearing first.
Use the Purchase Order Window
You can look for purchase order information using either query or find functionality.

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Purchase Orders
Chapter 7 - Page 110

Modifying Purchase Orders

Modifying Purchase Orders


You can access and modify your purchase orders

Reapproval Rules

Revision numbering of purchase orders


PO #1245
PO #1245-1 1st revision
PO #1245-2 2nd revision

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Modifying Purchase Orders


Once the desired purchase order is brought to the current record using the various methods
previously discussed for locating documents, you can make necessary changes to the
document. For example, you may adjust quantities, shipping addresses, need-by dates,
distributions, etc.

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Affect of Changes on Approval


Most changes cause the documents status to be updated to Requires Reapproval. Once the
document has been reviewed by someone with approval authority, they will either approve or
reject the document. Generally, all changes affecting the suppliers ability to accurately fill the
order will 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.
Revision Numbering of Purchase Orders
Depending on the type of modification made to a purchase order, Purchasing may increment
the revision number on the document.
Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 111

Printing Purchase Orders

Printing Purchase Orders

Only approved purchase orders can be printed


From the Submit for Approval window:
Default communication method checked according
to supplier definition

Select the Printed Purchase Order report from the


Reports menu

Printed purchase order

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Printing Purchase Orders


Purchase orders can be printed on demand or through a scheduled print process. Purchase
orders sent to suppliers need to be approved. Various criteria are available as parameters on
the Printed Purchase Order report to selectively print certain purchase orders. For example,
you could print only new purchase orders or only changed purchase orders or both. You could
print a single purchase order or a range of purchase orders and also have the option of printing
in test mode if needed. You will frequently reformat the output of the Printed Purchase Order
Report delivered with the system. Typical changes made include adding company logos,
background design or borders and outlines. You can make these report changes by taking a
copy of the current report and then adjusting the copy using Oracle Reports (included in the
Developer suite of applications).

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Purchase Orders
Chapter 7 - Page 112

Creating Purchase Order Revisions

Creating Purchase Order Revisions

Two Archiving Options

At the time of
approval

At the time of
printing

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Creating Purchase Order Revisions


Purchase order revisions are created through archiving which is the process of recording all
historical versions of approved purchase orders. Purchasing automatically archives a purchase
order when you approve it for the first time. Purchasing subsequently archives your purchase
orders either during the reapproval process or as a result of printing. You can create multiple
revisions of your purchasing documents (standard purchase orders, planned purchase orders,
blanket purchase agreements and contract purchase agreements). 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. Purchasing
prints the most current revision to send to the supplier. As a result, the first revision that you
print might not be 0 if you are archiving on approval. If youre sending purchase orders
through EDI, then archiving must be set to approval rather than printing. Use the Document
Types window to set whether each of these documents is archived upon approval or upon
printing. This window will be discussed in more detail in the Document Security, Routing and
Approval module.

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Purchase Orders
Chapter 7 - Page 113

Archiving Purchase Orders

Archiving Purchase Orders


Action
Step 1: Create/save PO

Approval
Archive
Current
Revision Revision

Printing
Archive Current
Revision Revision

None

None

Step 2: Approve PO

Step 3: Change quantity

Step 4: Reapprove PO

Step 5: Print PO

Step 6: Add an item

Step 7: Reapprove PO

Step 8: Print PO

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Archiving Purchase Orders


At the Time of Approval
When archiving is set to occur at the time of approval, revision numbers may be generated
more frequently. Therefore, revision numbers will generally be higher on documents when
using this option.

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At the Time of Printing


When archiving is set to occur at the time of printing, revision numbers may be generated less
frequently. Therefore, revision numbers will generally not be as high on documents when
using this option.

Copyright Oracle Corporation, 2003. All rights reserved.

Purchase Orders
Chapter 7 - Page 114

Purchase Order Statuses - Typical Cycle

Purchase Order Statuses - Typical Cycle


Submit for Approval
Requires Reapproval

Rejected

Incomplete

In Process
No

On Hold
Approve?

Yes

Pre-Approved
No

Frozen
Closed
Open

Approve?
Yes
Approved

Canceled
Finally Closed

Changes Made

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Purchase Order Statuses - Typical Cycle


Above is an example of a typical cycle for purchase order statuses. The initial status is
Incomplete until submitted for approval. The status is updated to In Process until it is either
Pre-Approved, Approved or Rejected. Once approved, many changes made to purchase
orders result in a status of Requires Reapproval. Once reapproved, the status is again
Approved.

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Where to Update Statuses


Purchase order statuses can be updated either in the Purchase Order window or in the Purchase
Order Summary window. Actions available to effect statuses will be different dependent on
the current document status and where you are updating.
Review of Status Types
Incomplete - Initial status on all new purchase orders.
In Process - Status of the document when its sitting on the desk of the approver
identified in your security, routing and approval setups.
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Chapter 7 - Page 115

Approved - A user with sufficient authority has reviewed and approved the document.
Rejected - Status of the document when the approver has denied approval.
Requires Reapproval - Status of the document when controlled changes have been made
to the document.
Frozen - 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.
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.
Closed - 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. Purchasing does not
include closed shipments in the Open Purchase Order reports.
- Closed 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.
- Closed 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 distributions to
Closed for Invoicing, but the purchase order lines and header remain open. The
Close for Invoicing status does not prevent you from matching an invoice to a
purchase order or to a receipt. You can close and reopen documents and their
components for invoicing and receiving using the Control Document window.
Open - You can reopen documents (at the header, release, line and shipment levels) that
have been previously closed to allow additional actions to be performed.
Canceled - Purchasing lets you terminate an existing commitment to buy from a supplier
by canceling 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. Canceled actions are permanent
and can not be reversed. If you are using online requisitions, 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.
Finally Closed - 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 finalclosed entities: receive, transfer, inspect, deliver, correct receipt quantities, invoice,
return to supplier, or return to receiving. You can approve documents that include finalclosed entities, but you cannot approve documents that are final closed at the header
level. Final closing documents is an internal control action that has no bearing on your
contractual relationship with the supplier. You cannot undo a final-close action.

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Chapter 7 - Page 116

Note: Only documents that have never been approved can be deleted. Optionally, you can
delete unapproved lines, unapproved shipments and unapproved distributions added to
previously approved documents. Deleted records cannot be viewed once the action is saved.
If you are using automatic numbering, you cannot reuse document numbers that you delete
with this option. 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.

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Purchase Orders
Chapter 7 - Page 117

Entering Purchase Order Acceptances

Entering Purchase Order Acceptances

Action
Action Date
Accepted By
Accepted
Acceptance Type

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Entering Purchase Orders Acceptances


When you select the Acceptance Required check box in the terms and conditions of purchasing
documents, you require your supplier to formally accept your purchase agreement offer. By
choosing Acceptances from the Tools menu from the Purchase Order and Releases window,
you can access the window to enter acceptances. Suppliers can enter their own acceptances
using iSupplier Portal
Action
Enter the results of your supplier follow-up. This a free-form field with no list of values. 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.
Action Date
Enter the date the action occurred on. The default is todays date, but you can override to
another date.
Accepted By
Enter the person who performed the action. Your name is the default, but you can change to
any other name from the employee list of values displayed.

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Purchase Orders
Chapter 7 - Page 118

Accepted
Check this box to indicate that the supplier accepted the purchase order.
Acceptance Type
Select the acceptance type from the seeded options below.
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.
You can define additional acceptance types through the Purchasing Lookup Codes.

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Purchase Orders
Chapter 7 - Page 119

Workflow Notifications

Workflow Notifications
PO#325
Kevin Jones
Incomplete

Electronic
notification
PO#325 requires your attention.
Kevin
Its status is Incomplete.

REQ#577
Sue Smith
Requires
Reapproval

REQ#583
Joe Holt
Rejected

Electronic
notification
REQ#577 requires
your reapproval.

Sue

REQ#583 has
been rejected.

Joe

Electronic
notification

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Workflow Notifications
The workflow PO Send Notifications for Purchasing Documents notifies you of various
situations that have occurred with your purchasing documents. Among the situations for
which youll be notified include documents with statuses of incomplete, rejected, or requires
reapproval. This workflow will also notify you when the date supplier acceptances were
requested has passed without acknowledgement of their acceptance. You can view and
respond to these notifications through the Notifications Summary window. This workflow
process is initiated by submitting the Send Notifications for Purchasing Documents process.
You will normally schedule that process to run on at least a daily basis.
Opening a Document
From a notification that you have opened, you can also drill down to the document. Depending
on the function security assigned to your responsibility, you have varying levels of access to
information. After you modify a document 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. Depending
on the notification message, recipients will be able to take actions such as approve, reassign,
forward, reject, ignore, or close.

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Purchase Orders
Chapter 7 - Page 120

Copying Purchase Orders

Copying Purchase Orders


FROM
Standard Purchase Order
Blanket Purchase Agreement
Planned purchase order
Bid quotation
(Bid quotation class)
Self-defined Bid quotation (Bid
quotation class)
Catalog or Standard quotation
(Catalog quotation class)
Self-defined Catalog or
Standard quotation
(Catalog quotation class)

TO
Standard Purchase Order
Blanket Purchase Agreement
or RFQ
Planned purchase order
Standard or planned
purchase order
Standard or planned
purchase order
Blanket purchase agreement
Blanket purchase agreement

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Copying Purchase Orders


You can copy purchase orders of any status. Above is a list of the documents that can be
copied from and to. This feature is particularly helpful if, for example, you want to renew a
blanket purchase agreement that contains hundreds of lines. Rather than manually entering the
same lines again into a new document, you can copy the previous agreement to a new
agreement and change the effectivity dates.
How to copy documents:
Query the document you want to copy from the Purchase Orders, Purchase Order
Summary, or Quotations windows.
Choose Copy Document from the Tools menu.
Select an eligible To Document Type.
Select other options if needed.
- Document Number: Enter a document number only if you use manual numbering.
- Copy Attachments: Check this box to copy an attachment from any level of the
document.

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Purchase Orders
Chapter 7 - Page 121

Purchasing creates and displays the new document. The document is an exact copy of the
original except for the Promised and Need-By dates; if these dates are past dates, they change
to todays date on the new document. Effectivity dates, if any, do not change. Modify the
document if needed. Save and approve the document. If information in the document you
have just copied is invalid or outdate. 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 are creating. You
cannot approve the document until you update these fields appropriately. You cannot use the
Copy Documents window to modify documents by copying from one document to another
with the same document number.

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Purchase Orders
Chapter 7 - Page 122

Agenda

Agenda

Overview of purchase orders


Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Maintain/adjust purchase orders
Identify key standard reports
Understand setup options
Understand additional
implementation considerations

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Purchase Orders
Chapter 7 - Page 123

Reports

Reports

Blanket and Planned PO Status Report


Canceled Purchase Orders Report
Contract Status Report
Open Purchase Orders Report (by Buyer)
Open Purchase Orders Report (by Cost Center)
Printed Change Orders Report (Landscape)

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Reports
Blanket and Planned PO Status Report
Review blanket and planned purchase orders and related releases.
Canceled Purchase Order Report
Review canceled purchase orders.
Contract Status Report
Review the status of contracts and list purchase orders regarding each contract.
Open Purchase Orders Report (by Buyer)
Review all or specific purchase orders for specific buyers.
Open Purchase Orders Report (by Cost Center)
Review all or specific purchase orders charged to one or more cost centers.
Printed Change Orders Report (Landscape)
Print changed purchase orders in landscape

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Purchase Orders
Chapter 7 - Page 124

Reports

Reports
Printed Change Orders Report (Portrait)
Printed Purchase Order Report (Landscape)
Printed Purchase Order Report (Portrait)
Purchase Agreement Audit Report
Purchase Order Commitment by Period Report
Purchase Order Detail Report
Purchase Order Distribution Detail Report

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Reports (continued)
Printed Change Orders Report (Portrait)
Print changed purchase orders in portrait format.
Printed Purchase Order Report (Landscape)
Print purchase orders in landscape format.
Printed Purchase Order Report (Portrait)
Print purchase orders in portrait format.
Purchase Agreement Audit Report
Review items purchased on a standard order that could have been purchased on a blanket.
Purchase Order Commitment by Period Report
Review the monetary value of commitments for the next six periods for one or all suppliers.
Purchase Order Detail Report
Review details for all or specific standard or planned purchase orders.
Purchase Order Distribution Detail Report
Review accounting distributions for purchase orders.

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Purchase Orders
Chapter 7 - Page 125

Reports

Reports
Purchase Order and Releases Detail Report
Purchase Summary Report by Category
Purchasing Activity Register

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Reports (continued)
Purchase Order and Releases Detail Report
Review details (quantity ordered, received, billed and expected) for blanket purchase
agreements, planned purchase orders and associated releases.
Purchase Summary Report by Category
Review the number of orders placed with suppliers for a given category.
Purchasing Activity Register
Review purchase order monetary activity for a period of time.

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Purchase Orders
Chapter 7 - Page 126

Summary

Summary
You should now be able to do the following:
Create standard, blanket and contract
purchase documents
Create blanket purchase agreement releases
Maintain purchase orders
Identify key reports
Understand setup options
Understand additional implementation
considerations

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Purchase Orders
Chapter 7 - Page 127

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Automatic Document
Creation
Chapter 8

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Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 1

Automatic Document Creation

Automatic Document Creation

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Automatic Document Creation


Chapter 8 - Page 2

Procure to Pay Lifecycle

Procure to Pay Lifecycle


Requisitions
Catalog
Content
Management

Purchase
Orders
Ordering

RFQs/
Quotations

Receiving

Sourcing

Invoice/
Payment

Analysis

Supplier
management

Reporting
Supplier
Performance

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Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 3

Objectives

Objectives
After completing this module you should be able to do
the following:
Use the AutoCreate window to automate the
creation of purchase documents
Use the Create Releases program to generate
blanket purchase agreement releases
Understand how the PO Create Documents
workflow can automatically create purchase
documents without buyer intervention

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Automatic Document Creation


Chapter 8 - Page 4

Agenda

Agenda

Understand AutoCreate
Understand the Create Releases program
Understand the PO Create Documents workflow
Understand setup options
Understand additional implementation
considerations

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Automatic Document Creation


Chapter 8 - Page 5

Creating Purchase Documents from Requisitions

Creating Purchase Documents from


Requisitions

Requisition Pool

AutoCreate

Create
Releases

Workflow

Purchase Documents

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Creating Purchase Documents from Requisitions


AutoCreate
The AutoCreate window can be used to search for approved requisitions in the requisition line
pool. Those requisitions can be used as a basis for creating RFQs, standard purchase orders,
blanket purchase agreement releases and planned purchase orders. Buyer intervention is
required to search the requisition pool and create the purchase documents.
Use the Create Releases Program
The Create Releases program is a concurrent request that may be scheduled to run periodically.
The Create Releases program can be used to generate blanket purchase agreement releases.
Buyer intervention to be eliminated for certain types of purchases by using the Create Releases
program.
Workflow
The PO Requisition Approval workflow automatically runs the PO Create Documents
workflow. Depending upon your implementation decisions, the PO Create Documents
workflow will end with unapproved or approved standard purchase orders or blanket purchase
agreement releases. Using the PO Create Documents workflow can make it possible to
eliminate buyer intervention for certain types of purchases.

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Automatic Document Creation


Chapter 8 - Page 6

Benefits of Using AutoCreate

Benefits of Using AutoCreate

Simplifies consolidation of similar requests


Ensures ordering from negotiated sources
Expedites fulfillment of goods and services
Streamlines procurement process

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Benefits of using AutoCreate


The AutoCreate window can be used to search for requisition lines for specific items or similar
items. After finding requisition lines, you can make decisions about how to consolidate similar
requests and ensure the resulting purchase documents are sent to the appropriate suppliers.

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Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 7

Overview of AutoCreate

Overview of AutoCreate

Automatic
creation
Requisition
line
pool

PO
Manual
creation

Query available
requisition lines
Choose lines
from
query results

PO

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Overview of AutoCreate
Purchasing Responsibility
(N) AutoCreate
Requisition Line Pool
To create blanket purchase releases, standard purchase orders or planned purchase agreements,
the requisition line must have a status of Approved and not be associated with an existing
purchase document. For RFQs the requisition lines do not need to have a status of Approved.
Externally sourced requisition lines can be for system items (including outside processing
items) or one-time items (a description and a category). Internally sourced requisition lines are
supplied by internal sales orders and are not available for AutoCreation.

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Automatic Creation
Use Automatic Creation mode to create purchase orders, blanket releases, planned purchase
orders or RFQs with a minimum number of keystrokes.

Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 8

Manual Creation
Use manual creation mode to create purchase orders, blanket releases, planned purchase orders
or RFQs and control the placement and grouping of requisition lines.
Note: Internally sourced requisition lines are supplied by internal sales orders, so they are not
available for autocreation. Internal requisitions will be covered in an advanced topic.

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Automatic Document Creation


Chapter 8 - Page 9

Automatic Creation Mode

Automatic Creation Mode


1.
2.
3.
4.

Find requisition lines


Select document creation criteria
Select requisition lines
Choose the Automatic button

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Automatic Creation Mode


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 with the same item, revision, line type, unit of measure, and transaction reason
into individual purchase order lines. Similarly, you can group requisition lines with the same
item, revision, and line type into individual RFQ lines.

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Use automatic creation mode when:


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.
You want Purchasing to combine similar requisition lines.
You are creating or adding to a release.
You are using Requisition grouping.

Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 10

Find Requisition Lines

Find Requisition Lines

Approved
Buyer

Yes
Stock, Ms. Pat

Item
Status
Item, Rev
Category

Enter
search
Criteria
and
click
Find

Description
Clear

Find

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Find Requisition Lines


Use the Find Requisition Lines window to search for requisition lines based on a variety of
different criteria including:
Approved
Requester
Requisition
Preparer
Buyer
Supplier
Supplier Site
Ship-To
Item
Description

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Automatic Document Creation


Chapter 8 - Page 11

You can find unapproved requisition lines by setting Approved to No. However, you will only
be able to create RFQs from unapproved requisition lines.

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Automatic Document Creation


Chapter 8 - Page 12

Select Document Creation Criteria

Select Document Creation Criteria

Requisition Line Item Category Description UOM Qty


| 422
| 437

|1
|1

| CM22 | PROD9 | MAIN PART | EA | 15 |


| CM22 | PROD9 | MAIN PART | EA | 85 |

Select document creation criteria


Action
Document Type
Grouping

Manual

Automatic

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Selecting Document Creation Criteria


Action
Choose one of the following document actions:
Create - Create a new purchase document
Add To - Add to an existing purchase document
Document Type
Choose from the following document types:
Standard PO
Blanket Release
Planned PO
RFQ
Grouping
Choose one of the following grouping options:
Default - requisition lines for the same item, revision, line type, unit of measure, and
transaction reason are combined into individual purchase order lines.

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Automatic Document Creation


Chapter 8 - Page 13

Requisition - the autocreated documents parallel the structure of the requisition from
which they were created. If you select multiple requisition lines from the same
requisition, they will not be grouped (even if the lines are exactly the same) and will
create multiple lines on the resulting purchase document. For example 5 requisition lines
will create 5 lines on the resulting purchase document. When using requisition grouping,
you can select lines from one requisition only and you cannot use manual creation mode.

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Automatic Document Creation


Chapter 8 - Page 14

Select Requisition Lines

Select Requisition Lines

Select requisition
lines

Requisition Line Item Category Description UOM Qty


| 422
| 437

|1
|1

| CM22 | PROD9 | MAIN PART | EA | 15 |


| CM22 | PROD9 | MAIN PART | EA | 85 |

Action: Create
Document Type: Standard PO
Grouping: Default

Manual

Automatic

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Select Requisition Lines


Requisition lines are ordered by item, item category and then need-by date.

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Automatic Document Creation


Chapter 8 - Page 15

Select Automatic Creation Mode

Select Automatic Creation Mode

Requisition Line Item Category Description UOM Qty


| 422
| 437

|1
|1

| CM22 | PROD9 | MAIN PART | EA | 15 |


| CM22 | PROD9 | MAIN PART | EA | 85 |

Action: Create
Document Type: Standard PO
Grouping: Default

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4
Manual

Click
Automatic
Automatic

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Automatic Document Creation


Chapter 8 - Page 16

Autocreate New Document Window

Autocreate New Document Window

Requisition Line Item Category Description UOM Qty


Document
| 422
| 1 | CM22 | PROD9 | MAIN PART | EA | 15 |
| 437
| 1 | CM22 | PROD9 | MAIN PART | EA | 85 |
Supplier
Supplier Site
Currency Source: Default
Action: Create
First Requisition Line
Document Type: Standard PO
Specify
Grouping: Default
Manual
Automatic
Create
Cancel

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Autocreate New Document Window


You can accept the default values in this window or make changes if appropriate. After
selecting the Create button, the PO: Display the AutoCreated Document profile option will
determine if Purchasing opens the appropriate transaction window (Purchase Orders window
or RFQs window) and displays the created line(s). The supplier and supplier site are not
required fields in this window. However, if AutoCreate creates the document without a
supplier and supplier site, they must be added to the purchase document before it can be
approved.

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Automatic Document Creation


Chapter 8 - Page 17

Manual Creation Mode

Manual Creation Mode


1.
2.
3.
4.

Find requisitions
Select document creation criteria
Click Manual to open the Document Builder
Manually combine the requisition lines to build the
document line by line

Manual
creation

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Manual Creation Mode


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. You can combine like requisition lines onto a single document
line. If you want to combine two requisition lines for the same item, one with a predefined
item and one with a one-time item (a line with a category and description), use Modify on the
Tools menu to change the one-time item line to the predefined item.

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Use manual creation mode when:


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.

Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 18

Add to Existing Document

Add to Existing Document

Select the Action type


Select Add To for additional lines on an existing
document

Select the requisition lines to add


Select creation mode
Automatic to simply add the selected lines
Manual to add the lines as you wish

Specify the existing document number to add to

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Add to Existing Document


You can add lines to existing documents only if your security criteria allow you to modify
them.

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Automatic Document Creation


Chapter 8 - Page 19

Modify Requisition Lines

Modify Requisition Lines

Highlight requisition line to be modified


Navigate to Modify Lines window
Split existing requisition lines
To be autocreated for different suppliers
To be autocreated as different items

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Modify 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, you
can split the requisition line and assign the split lines to different purchase documents written
to different suppliers. In an additional example, if you have a requisition line item that contains
parts that you want to order as unique items, you can split the requisition line into several lines.

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Enter as many new lines as you need to represent the original requisition line. For each newly
created line, Purchasing automatically creates distribution lines and prorates quantities for the
new distributions based on the original requisition line distributions. 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 if they meet your original search criteria.
The original requisition line is no longer available for purchase order or RFQ placement, but
your requester can easily review the modification status of a requisition line in the Requisitions
Summary window.

Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 20

Return Requisition Lines

Return Requisition Lines

Highlight requisition line to be returned


Navigate to Return Requisitions window
Return requisition line to requestor with reason for
return. For example:
Goods or services no longer available
Price increase requires requisition reapproval

Remaining lines on requisition are automatically


returned to requestor

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Return Requisition Lines


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 requestors price and want the requestor
to resubmit the requisition for approval at a higher price. From the Tools menu, select Return
Requisitions 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.

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Once a requisition submitted in Purchasing has been approved, the requisition must be returned
for the original submitter to make changes to it. If the requisition was submitted using
iProcurement, the requestor can use the Withdraw feature to make changes and re-submit the
requisition. The Withdraw feature is not available in Purchasing and can only be used in
iProcurement if no lines on the requisition are associated with purchase documents.
The Send Notifications for Purchasing Documents program will distribute notifications for
returned requisitions. This program should be scheduled to run periodically.
Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 21

Guided Demonstration - Return a Requisition (Required)


Responsibility: System Administrator
(N) Profile > System
Return a requisition to the sender. Find the purchase requisition you created and return it to the
requester; note a reason for returning the requisition.
Prevent Buyer Override in AutoCreate Window
1.

Responsibility = System Administrator

2.

Navigate to the System Profiles window

3.

(N) Profile > System

4.

Responsibility = Checked

5.

Responsibility = XXPurchasing, Vision Operations

6.

Profile = PO: Allow Buyer Override in Autocreate Find

Profile

Site

PO: Allow Buyer Override in Autocreate Find

Yes

7.

(B) Find

Return a Requisition

Application

User

No

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8.

Responsibility = XXPurchasing, Vision Operations

9.

Open the Find Requisition Lines window:

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Responsibility

10. (N) AutoCreate

11. Requisition = Your purchase requisition created using the supplier item catalog
12. (B) Find to open the AutoCreate Documents window.
13. Open the Return Requisitions window:
14. (M) Tools > Return Requisition

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Automatic Document Creation


Chapter 8 - Page 22

15. In the Reason field, enter a reason for returning the requisition.
Note: The return reason can be viewed in the Action History window.
16. (B) OK
Note: This action returns ALL requisition lines associated with this requisition unless they have
been placed on a purchase document.
ReApprove your requisition
17. Open the requisitions window.
18. (N) Requisitions > Requisition Summary
19. Enter your requisition number in the Requisition Number field.
20. (B) Find
21. Note the approval status.
22. (M) View > Action History
23. Close the Action History window
24. (B) Open
25. (B) Approve
26. Submit for Approval = Checked
27. Uncheck all other options
28. (B) OK
29. (B) OK to close the note window.

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Automatic Document Creation


Chapter 8 - Page 23

Guided Demonstration - AutoCreate a Purchase Order (Required)


Responsibility: XXPurchasing, Vision Operations
(N) AutoCreate
Autocreate a Standard Purchase Order
1.

Enter the number of your purchase requisition in the Requisition field.

2.

(B) Find to open the AutoCreate Documents window.

3.

Action = Create

4.

Document Type = Standard PO

5.

Grouping = Default

6.

(M) Edit > Select All to select all lines

7.

(B) Automatic

8.

Supplier = XXIBM Corporation

9.

(B) Create

10. Record the purchase order number.


11. (B) OK to close the note window.
12. Save the purchase order but dont approve it.

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Place your Purchase Order on the Navigator


13. Place your Purchase Order on the Navigator

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14. (M) File > Place on Navigator

15. Close windows until you are back at the Navigator

Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 24

Practice - Return a Requisition


Overview
In this practice, you will use the AutoCreate form to return a requisition.

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Log on to the System
User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations
Create an Expense Item
Create an expense item that will be purchased by the M1-Seattle Manufacturing inventory
organization. Set t he item attributes based on the following information.
1.

Navigate to the Master Items window


Item = XXSoftware
Description = Expensed Item
Purchased = Checked
Purchasable = Checked
Default Buyer = Stock, Ms. Pat
Use Approved Supplier = Unchecked
List Price = 450
Expense Account = 01-510-7530-0000-000

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Enable the Item in an Inventory Organization


2.

Enable the item in the M1-Seattle Manufacturing inventory organization.

Create an Inventory Item


3.

Create an inventory item that will be purchased by the M1-Seattle Manufacturing inventory
organization. Set t he item attributes based on the following information.
Item = XXMonitor
Description = Inventory Item
Purchased = Checked
Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 25

Purchasable = Checked
Use Approved Supplier = Unchecked
Default Buyer = Stock, Ms. Pat
List Price = 250
Inventory Item = Checked

Enable the Item in an Inventory Organization


4.

Enable the item in the M1-Seattle Manufacturing inventory organization.

Requisition your Expensed Item


5.

Add your expensed item to a requisition.

6.

Navigate to the Requisitions window


Description = XXPurchases
Item = XXSoftware
Quantity = 10
Need-by = Todays Date
Destination Type = Expense
Organization = Vision Operations
Location = V1- New York City
Supplier = Blank
Site = Blank

Requisition your Inventory Item


7.

Add your inventory item to a requisition


Item field on line 2 = XXMonitor
Quantity = 5
Need-by = Todays Date
Destination Type = Inventory
Organization = Seattle Manufacturing
Location = M1 Seattle
Supplier = Blank
Site = Blank

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Approve the Requisition


8.

Submit your requisition for approval

Return your Requisition


9.

Use the AutoCreate form to query your requisition and return it. Supply a return reason.

ReApprove your Requisition

Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 26

10. Find your requisition using the Requisition Summary window


11. View the Return Reason in the Action History window
12. Resubmit your requisition for approval.

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Automatic Document Creation


Chapter 8 - Page 27

Solution - Return a Requisition


Log on to the System
User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations
Create an Expense Item
1.

Choose the organization

2.

(N) Change Organization

3.

From the list of values, choose M1-Seattle Manufacturing and click OK

4.

Open the Master Item window:

5.

6.

(N) Items > Master Items


Item = XXSoftware
Description = Expensed Item

(T) Purchasing
Purchased = Checked
Purchasable = Checked
Default Buyer = Stock, Ms. Pat
Use Approved Supplier = Unchecked
List Price = 450
Expense Account = 01-510-7530-0000-000
Save

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Automatic Document Creation


Chapter 8 - Page 28

Enable the Item in an Inventory Organization


7.

(M) Tools > Organization Assignment

8.

Assign the item to the following inventory organizations:


M1 - Seattle Manufacturing

9.

Save

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Chapter 8 - Page 29

Create an Inventory Item


10. Open the Master Item window:

(N) Items > Master Items


Item = XXMonitor
Description = Inventory Item

11. (T) Purchasing


Purchased = Checked
Purchasable = Checked
Use Approved Supplier = Unchecked
Default Buyer = Stock, Ms. Pat
List Price = 250

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12. (T) Inventory


Inventory Item = Checked

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13. Save

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Automatic Document Creation


Chapter 8 - Page 30

Enable the Item in an Inventory Organization


14. (M) Tools > Organization Assignment
15. Assign the item to the following inventory organizations:
M1 - Seattle Manufacturing
16. Save

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17. Close the Organization Assignment and the Master Item windows

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Chapter 8 - Page 31

Requisition your Expensed Item


18. Open the Requisitions window:

(N) Requisitions > Requisitions


Description = XXPurchases

19. (T) Items


Item = XXSoftware
Quantity = 10
Need-by = Todays Date
Destination Type = Expense
Organization = Vision Operations
Location = V1- New York City
Supplier = Blank
Site = Blank

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20. Save

Requisition your Inventory Item


21. (T) Items

22. (M) File > New


Item field on line 2 = XXMonitor
Quantity = 5

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Automatic Document Creation


Chapter 8 - Page 32

Need-by = Todays Date


Destination Type = Inventory
Organization = Seattle Manufacturing
Location = M1 Seattle

23. Save
24. Record your requisition number

Approve the Requisition


25. Submit for Approval = Checked

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26. OK

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27. Close the Requisitions window.


Return your Requisition

28. Open the Find Requisition Lines window:

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Chapter 8 - Page 33

29. (N) AutoCreate


30. (B) Clear to clear existing query criteria.
Requisition = Your purchase requisition

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31. (B) Find to open the AutoCreate Documents window.


32. Open the Return Requisitions window

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Chapter 8 - Page 34

33. (M) Tools > Return Requisition.


34. In the Reason field, enter a reason for returning the requisition.
Note: The return reason can be viewed in the Action History window.
35. (B) OK
Note: This action returns ALL requisition lines associated with this requisition unless they
have been placed on a purchase document.
ReApprove your Requisition
36. Open the requisitions window

(N) Requisitions > Requisition Summary

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37. Enter your requisition number in the Requisition Number field

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38. (B) Find

39. Note the approval status.

40. (M) View > Action History

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Automatic Document Creation


Chapter 8 - Page 35

41. Close the Action History window


42. (B) Open
43. (B) Approve
Submit for Approval = Checked
Uncheck all other options
44. (B) OK
45. (B) OK to close the note window.

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Automatic Document Creation


Chapter 8 - Page 36

Practice - AutoCreate a Purchase Order


Overview
In this practice, you will use the AutoCreate form to return a requisition.

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Log on to the System
User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations
Autocreate a Standard Purchase Order
1.

Use the AutoCreate window to find the requisition you returned in the last practice. Use
automatic creation mode to create a standard purchase order.
Supplier = Advanced Network Devices
Site = SANTA CLARA

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Automatic Document Creation


Chapter 8 - Page 37

Solution - AutoCreate a Purchase Order


Log on to the System
User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations
Autocreate a Standard Purchase Order
1.

Open the AutoCreate Documents window:

(N) AutoCreate

2.

(B) Clear

3.

Enter the number of your purchase requisition in the Requisition field.

4.

(B) Find to open the AutoCreate Documents window.

Action = Create
Document Type = Standard PO
Grouping = Default

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5.

(M) Edit > Select All to select all lines

6.

(B) Automatic to create a standard purchase order.

Copyright Oracle Corporation, 2003. All rights reserved.

Automatic Document Creation


Chapter 8 - Page 38

Supplier = Advanced Network Devices


7.

(B) Create

8.

Record the purchase order number.

9.

(B) OK to close the note window.

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Automatic Document Creation


Chapter 8 - Page 39

10. Save

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Automatic Document Creation


Chapter 8 - Page 40

Summary

Summary
You should now be able to do the following:
Use the AutoCreate window to automate the
creation of purchase documents
Use the Create Releases program to generate
blanket purchase agreement releases
Understand how the PO Create Documents
workflow can automatically create purchase
documents without buyer intervention

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Automatic Document Creation


Chapter 8 - Page 41

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Receiving
Chapter 9

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Receiving
Chapter 9 - Page 1

Receiving

Receiving

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Receiving
Chapter 9 - Page 2

Procure to Pay Lifecycle

Procure to Pay Lifecycle


Requisitions
Catalog
Content
Management

Purchase
Orders
Ordering

RFQs/
Quotations

Receiving

Sourcing

Invoice/
Payment

Analysis

Supplier
management

Reporting
Supplier
Performance

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Receiving
Chapter 9 - Page 3

Objectives

Objectives
After completing this module, you should be able to do
the following:
Describe the process of receiving goods
Understand receipt routing
Understand receipt processing methods
Create Standard, Express, and Cascade receipts
Understand Substitute receipts, Unordered
Receipts, Returns and Corrections
Understand Pay on Receipt
Identify key reports
Understand setup options
Understand additional implementation
considerations

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Receiving
Chapter 9 - Page 4

Agenda

Agenda

Understand the Receiving process


Understand receipt routing
Understand receipt processing methods
Understand Substitute receipts, Unordered
Receipts, Returns and Corrections and Pay on
Receipt
Identify key standard reports
Understand setup options
Understanding additional implementation
considerations

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Receiving
Chapter 9 - Page 5

Receiving

Receiving
Supplier

Inventory

Transfer

Shipment

Receive

Deliver

Shop floor

Order Entry

Inventory

Internal
shipment

Inspect

Expense

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Receiving
Receiving is a transaction that signals that the goods ordered on a purchase order have arrived.
Purchasing lets you control the items you order through receiving, inspections, transfer and
delivery. You can:
Define receiving tolerances and rules at the organization supplier, item and order level,
with the lowest level overriding previous levels.
Use Express Receipt to receive an entire purchase order with a few keystrokes.
Use the Cascade function to distribute a given quantity of an item from a single supplier
across multiple shipments and distributions.
Record receipt of unordered items, research receipt and match the delivery to an existing
purchase order.
Record delivery of items from receiving or inspection locations to their final destination
and also record transfers of items to different locations for inspection.
Define which of your items require inspection. You can accept or reject items and
provide detailed information about your inspection results.
Record returns to suppliers and customers.

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Receiving
Chapter 9 - Page 6

Correct receiving transaction errors.


Review transaction history.

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Receiving
Chapter 9 - Page 7

Overview of Receiving Locations

Overview of Receiving Locations


Ship-to location
Receiving dock A
receives 20 items

Receiving locations

Destination
Factory 1 receives
10 items

Cold storage A
20 items

Cold Sub A
Inspection
station 1
20 items

Locator 1
10 items
Paul
requester
10 items

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Overview of Receiving Locations


You record inspections, deliveries and material movements within receiving and inspection by
entering receiving transactions. The transactions provide a history that allows you to track an
item from its source to its destination.
Receiving Transactions allow you to:
Transfer goods from one location to another
Document inspection results
Deliver goods to their required destination

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It is the destination type that tells the system if the material is in the receiving space or its final
destination.

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 8

Agenda

Agenda

Understand the Receiving process


Understand receipt routing
Understand receipt processing methods
Understand Substitute receipts, Unordered
Receipts, Returns and Corrections and Pay on
Receipt
Identify key standard reports
Understand setup options
Understanding additional implementation
considerations

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Receiving
Chapter 9 - Page 9

Overview of Receipt Routing

Overview of Receipt Routing

Direct Receipt

Inspection

One Step

Three Steps

Dock to Stock

Goods are received and


then sent to Inspection.
Goods are accepted or
rejected.

Standard Receipt
Two Steps

Third step either returns or


delivered.

Goods are received and


then delivered in two
transactions.

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Overview of Receipt Routing


Direct Receipt
One step. Goods are received and delivered in one step.
Standard Receipt
Two steps. Goods are received in one step and then delivered in a second. This allows for the
time it takes goods to move though your facility from the receiving dock. Quantity on hand in
subinventories is not updated until the delivery is completed. The quantity and cost is
maintained in the inventory organizations inventory receiving account until the delivery is
made.
Inspection Required
Three steps. Used for goods that require a more skilled person to do a careful review. Goods
are received in one step. Inspection either accepts or rejects the goods. A quality score can be
assigned at that time. Goods that are accepted are delivered in the third step, while goods that
are rejected are returned to the supplier.

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Receiving
Chapter 9 - Page 10

Direct Delivery

Direct Delivery
1

Receive and
Deliver

Inventory

Shop floor

Expense

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Direct Delivery
Direct delivery allows receipt of items directly to their final delivery destination. This is
sometimes called a dock to stock transaction. The final destination type may be Expense,
Inventory, or Shop Floor.

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Receiving
Chapter 9 - Page 11

Standard Receipt

Standard Receipt
1

Receive

Optional

2
Inventory

Deliver

Shop floor

Expense

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Standard Receipt
Shipments are received into a receiving location and then delivered to an interim or final
destination. Goods are usually received and delivered in separate transactions. However, if the
RCV: Allow Routing Override profile option is set to Yes, users can override the default and
immediately deliver to the final destination. Setting the RCV: Allow Routing Override profile
to No forces a two step delivery process.

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Receiving
Chapter 9 - Page 12

Inspection Required

Inspection Required
1

Receive

Reqd

3
Inventory

Inspect

Deliver

Shop floor

Expense

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Inspection Required
Inspection is a procedure you perform to ensure that items received confirm to your quality
standards. Goods must be received and inspected before they can be delivered to their final
destination. The QA: PO Inspection Profile option can be set to either Purchasing or Quality.
If the profile option is set to Purchasing, a simple inspection window opens for recording
inspection results. If the profile option is set to Quality and a quality inspection plan exists, the
Quality form is opened and inspection results may be recorded based on a predefined
inspection plan.

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Receiving
Chapter 9 - Page 13

Agenda

Agenda

Understand the Receiving process


Understand receipt routing
Understand receipt processing methods
Understand Substitute receipts, Unordered
Receipts, Returns and Corrections and Pay on
Receipt
Identify key standard reports
Understand setup options
Understanding additional implementation
considerations

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Receiving
Chapter 9 - Page 14

Receipt Processing Methods

Receipt Processing Methods

Standard receipt
Express receipt
Cascade receipt
ASNs or ASBNs - iSupplier Portal
ASNs or ASBNs - e-Commerce Gateway
Receiving in iProcurement
Receiving open interface
Receiving notification

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Receipt Processing Methods


Standard receipt
One line at a time.
Express receipt
Multiple lines at a time. For example, an entire purchase order for a supplier. During express
receiving you can always deselect items and change quantities prior to completing the process.
Cascade receipt
One receipt of multiple shipments of the same item. For example, same supplier and same
item represented on multiple purchase documents.
ASNs or ASBNs - iSupplier Portal
You can give your supplier carefully limited access to allow them to enter ASNs or ASBNs.
ASNs or ASBNs - e-Commerce Gateway
Load ASNs or ASBNs using the e-Commerce Gateway.
Receiving in iProcurement

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Receiving
Chapter 9 - Page 15

You can give your employees limited ability to receive some types of items through a web
browser.
Receiving Open Interface
Use barcoding software to scan receipts and create a text file that can be loaded into the
Receiving Open Interface and processed by running the Receiving Transaction Processor.
Receiving Notification
The PO Confirm Receipts workflow can be scheduled to send notifications to requesters asking
them to confirm receipts against expected receipts.

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Receiving
Chapter 9 - Page 16

Standard Receipt

Standard Receipt

Find expected receipts


Enter quantities for received items

Qty

Item

10

CM13139

CM12458

DC21322

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Receiving
Chapter 9 - Page 17

Express Receipt

Express Receipt

Find expected receipts


(B) Express fully receives all expected shipments
Enter Final Destination (Inventory, Expense or
Shop Floor
Qty

Item

10

CM13139

CM12458

DC21322

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Express Receipt
The express function is a quick method of entering receipts and receiving transactions. This
function is available if you have specified or inferred a source document. With a few
keystrokes you can receive the entire open order quantity of a purchase order. When you
search for expected receipts, either specify a single supplier or use search criteria that will
derive a single supplier.

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Receiving
Chapter 9 - Page 18

Cascade Receipt

Cascade Receipt

Find expected receipts


(B) Cascade fully receives all expected shipments
Enter quantity to cascade
Cascade qty = 12

Qty expected

Qty

Item

10

10

CM13139

CM13139

CM13139

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Cascade Receipt
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 if you have
specified or inferred a source (a specific supplier or customer) and an item when you search for
expected receipts.

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Receiving
Chapter 9 - Page 19

ASNs and ASBNs

ASNs and ASBNs


1

Enter

Confirm

iSupplier
Portal
Open
interface
Receiving
Transaction
Processor
e-Commerce
Gateway

Confirm
Receipts

Process

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ASNs and ASBNs


Enter (1)
Enter ASNs and ASBNs using either iSupplier Portal or e-Commerce Gateway.
Process (2)
Run the Receiving Transaction Manager to validate data in the Receiving Open Interface
tables.
Confirm (3)
Use the Enter Receipts window to confirm the actual receipt of goods when it arrives.

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Receiving
Chapter 9 - Page 20

Receiving in iProcurement

Receiving in iProcurement

Receive

Confirm

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Receiving in iProcurement
Receive (1)
You receive the actual goods.
Confirm (2)
You can confirm physical receipt of goods using iProcurement as well as the Enter Receipts
form in Purchasing, provided you are using a receipt routing of Direct Delivery. You will not
find expected receipts if the receipt routing is set to Standard Receipt or Inspection Required.

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You can schedule the Confirm Receipts Workflow Select Orders process to run at regular
intervals. The Confirm Receipts Workflow Select Orders process runs the PO Confirm
Receipts workflow. The Confirm Receipts workflow sends notifications through the Web, email, or Notifications Summary window to requesters or buyers who create requisitions
through Purchasing or iProcurement. It lets people know they should have received an item.
The Confirm Receipts workflow sends notifications for items with a Destination or Deliver-To
Type of Expense, a Receipt Routing of of Direct Delivery, and a Need-By date that is equal to
or later than todays date.

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 21

Receiving Open Interface

Receiving Open Interface

Load

Confirm

Open
interface
Receiving
Transaction
Processor

Flat File

Confirm
Receipts

Process

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Receiving Open Interface


Load (1)
Load the Receiving Open Interface with data using SQL*Loader or another utility. You can
use barcoding software to create the text file as items are scanned to help automate the
receiving process.
Process (2)
Run the Receiving Transaction Manager to validate data in the Receiving Open Interface
tables.
Confirm (3)
Use the Enter Receipts window to confirm the actual receipt of goods when it arrives.

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Receiving
Chapter 9 - Page 22

Finding Expected Receipts

Finding Expected Receipts


1

Choose the organization

Find expected receipts

Input receipt header

Chose processing method

Input receipt details

Save

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Finding Expected Receipts


Purchasing Responsibility
(N) Receiving > Receipts
Choose the organization (1)
When you first access the Receipts window, you will be forced to choose an inventory
organization from the list of values if you can process receipts for more than one. You can
change the organization manually if you have access to the Change Organization window.
Although it is not always the case, you can think of an inventory organization as a warehouse.
When you write purchase orders, for example, you specify goods to be shipped to specific
inventory organizations. You will only be able to view expected receipts (scheduled shipments
for a purchase order line item) for the inventory organization you choose. Use the
Organization Access form to limit access to the list of inventory organizations for a specific
responsibility.
Find expected receipts (2)
Expected Receipts can and do come from different sources because they are based on source
documents like purchase order scheduled shipments to suppliers, Internal Sales Orders
resulting from Internal requisitions and customer returns (processed in Order Management).

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Receiving
Chapter 9 - Page 23

When no source document can be found, the order can be processed as an Unordered receipt
provided the Allow Unordered Receipts Receiving option is enabled on the scheduled
shipment.
Use the Find Expected Receipts window to find source documents. You can enter as many
criteria as desired to search for expected receipts. The more information you include, the more
restrictive the search is. The focus of this course is those receipts that are expected for a
supplier as a result of a purchase order or release that was issued. Other sources of goods to be
received are from either internal inventory organizations, or from customers.
Input receipt header (3)
Input receipt header details like freight carrier, comments and packing slip.
Choose processing mode (4)
Choose the most efficient method to process the invoice. Choose to process the receipt as a
standard, express or cascade receipt.
Input receipt details (5)
Input receipt details like quantity, unit of measure, location and subinventory (if necessary).
The method of receipt routing determines if the destination defaults to Receiving or a final
destination like Inventory, Expense or Shop Floor. You can override this option (for example,
when using Standard Delivery, the destination will default to Receiving but you override it to a
final destination) only if the RCV: Allow Routing Override profile option is set to Yes. Also
the Enforce Ship-To Receiving option determines whether the receiving location must be the
same as the Ship-To location. The Enforce Ship-To option can be set to allow the receipt,
allow the receipt but warn the receipt processor or not allow the receipt to be processed.
Save (6)
Save the receipt. Depending on the setting of the RCV: Processing Mode profile option, the
receipt will be processed immediately or submitted as a batch or deferred process.

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Receiving
Chapter 9 - Page 24

Receipt Header

Receipt Header

Receipt Number
Receiver Name
Date
Freight Carrier
Packing Slip/Air Bill
Number or Containers
Comments

Receipt

HEADER

LINE

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Receipt Header
Receipt Number
Enter a unique receipt number. If automatic receipt number generation is active, the system
will assign the next available receipt number. Numbering options are set one time for each
inventory organization. You can also add receiving transactions existing receipts.
Receiver Name
The receiver name will default in from the user id. You can override the default with the name
of another receiver.
Date
Todays date will default in from the system date. You can backdate a receipt if necessary, but
the accounting period that the receipt date fall into must be open to do so.
Freight Carrier
You may enter the carrier who delivered the goods using the list of values. This information
will default if an ASN was sent.
Packing Slip / Air Bill Number

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Receiving
Chapter 9 - Page 25

You may enter the packing slip or air bill number that the goods came in on. This information
will default if an ASN was sent.
Number of Containers
You may enter the total number of containers that made up this shipment.
Comments
The receiver may enter any comments here. An example might be that the box was wet, etc.

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Receiving
Chapter 9 - Page 26

Receipt Line

Receipt Line

Quantity
Unit of Measure
Item
Description
Destination Type
Order Number
Receipt Type
Requestor
Subinventory
Note to Receiver

Receipt

HEADER

LINE

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Receipt Line
Quantity
Enter the quantity actually received. If you have allowed blind receiving in the inventory
organizations receiving options, this field will be empty.
Unit of Measure
The unit of measure for the receipt will default here.
Item
The system item number (if one exists) will display here.
Description
The description for the item will display here.
Destination Type
The final destination of the receipt (Expense, Inventory or Shop Floor) or Receiving is
displayed. For a direct receipt the destination will be either: inventory, expense or outside
processing. A standard or inspection receipt will have a destination type of receiving.
Order Number

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Receiving
Chapter 9 - Page 27

The order number will default (purchase order number or sales order number).
Receipt Type
The receipt type for this order will default here. Either direct, standard or inspection.
Requestor
If the destination type is expense or inventory, and the order was created from a purchase
requisition, the name of the requestor will default.
Subinventory
If the destination type is inventory this field is required. If the sub inventory was specified on
the requisition or purchase order, it will default here. If no value defaults, the receiver will
have to fill in which subinventory the goods are to be delivered to.
Note to Receiver
If a note to the receiver was entered either on the requisition or the purchase order, it will
display here.

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Receiving
Chapter 9 - Page 28

Guided Demonstration - Create a Standard Purchase Order


(Required)
Responsibility: XXPurchasing, Vision Operations
(N) Purchase Orders > Purchase Orders
Create a purchase order that will be used for receiving.
Create a Standard Purchase Order
1.

Supplier = XXIBM Corporation

2.

Type = Standard Purchase Order

3.

Ship-to = M1-Seattle

4.

Bill-to = V1-New York

5.

Description = XXComputer Equipment

Enter Terms and Conditions


6.

Navigate to the Terms and Conditions window:

7.

(B) Terms

8.

Payment = Immediate

9.

Pay On = Blank

10. Save
11. Close the Terms and Conditions window
12. (T) Items

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13. Enter the items according to the following table:

Num
1
2
3

Item

Quantity

Price

Promised

XXSoftware

10

450

Blank

XXMonitor

10

250

Blank

XXComputerPC

1200

Today + 7 days

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 29

Note: Need-by and Promised-by are only required for planned items. However, they are
necessary for some of the supplier performance reports.
14. Save
Enter Shipments
15. Place cursor in the Description field for the XXSoftware item
16. (B) Shipments
17. Enter the following shipments for the XXSoftware item.

Num

Org

Ship-To

UOM

Quantity

Promised

M1

M1-Seattle

Each

In 1 month

M1

M1-Seattle

Each

In 2 months

M1

M1-Seattle

Each

In 3 months

18. Save
19. (T) More
20. Match Approval Level = 2-way
21. Invoice Match Option = PO
22. Save

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23. Close the Shipments window to return to the Purchase Orders window.
24. Place cursor in the Description field for the XXMonitor item.
25. Navigate to the Shipments window:

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26. (B) Shipments

27. Enter the following shipments for the XXMonitor item.

Num
1
2
3

Org

Ship-To

UOM

Quantity

Promised

M1

M1-Seattle

Each

In 1 month

M1

M1-Seattle

Each

In 2 months

M1

M1-Seattle

Each

In 3 months

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 30

28. Save
29. (T) More
30. Match Approval Level = 3-way
31. Invoice Match Option = PO
32. Save
33. Close the Shipments window to return to the Purchase Orders window.
34. Record your purchase order number.
Complete the Internal Distributions for the Expensed item
35. Click in the Description field for the XXSoftware item.
36. (B) Shipments
37. (B) Distributions
38. Complete the internal distribution according to the following table:

Num

Type

Expense

Requestor
Smith, Mr. Jonathon

39. Save
40. Close the Distributions window.

Quantity

Charge

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4

01-520-7530-0000-000

41. Repeat the steps above until ALL shipments have a completed internal distribution.

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42. Save

Complete the Internal Distributions for the Inventory item


43. Place cursor in the Description field for the XXMonitor item.
44. (B) Shipments

45. (B) Distributions

46. Complete the internal distribution according to the following table:


Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 31

Num

Type

Inventory

Requestor

Subinventory

Smith, Mr. Jonathon

Stores

Quantity
4

Note: The type of the item is Inventory. For Inventory items, the charge account cannot be
changed. Account generator builds it based on the accounting in the inventory organization! If
the account combinations are not being built the way you need them to be, you can modify the
workflows to build them the way you need them to be built.
47. Save
48. Close the Distributions window.
49. Repeat the steps above until ALL shipments have a completed internal distribution.
50. Save
51. Close the Distributions and Shipments windows.
Complete the Internal Distributions for the Asset
52. Place cursor in the Description field for the XXComputerPC item.
53. (B) Shipments
54. (B) Distributions

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55. Complete the internal distribution according to the following table:

Num

Type

Expense

Requestor
Smith, Mr. Jonathon

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Quantity

Charge

01-000-1570-0000-000

Approve the Document

56. Record your purchase order number.


57. (B) Approve

58. Submit for Approval = Checked


59. Uncheck all other options

60. (B) OK in the Approve Document window.


Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 32

61. (B) OK to close the note window.


Verify Distribution Information
62. Query up your PO
63. Verify that each distribution for XXMonitor has requestor and subinventory information
recorded
64. Verify that each distribution for XXSoftware has requestor information recorded.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 33

Guided Demonstration - Create a Standard Receipt (Required)


Responsibility: XXPurchasing, Vision Operations
(N) Receiving > Receipts (M1 - Seattle Manufacturing)
Find Expected Receipts
1.

Purchase Order = Your Purchase Order from #1.

2.

Supplier = XXIBM Corporation

3.

Item = XXComputerPC

4.

(B) Find

Fill in Receipt Header Details


5.

Packing Slip = PS-XX

6.

Freight Carrier = UPS

Note: The Receipt Header window opens on top of the Receipts window. When you have
completed the Receipt Header window, click in the Receipt window, which is located behind the
Receipt Header window to navigate to it.
Process a Standard Receipt

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7.

(M) Window > Receipts (M1)

8.

Select the checkbox to the left of the Quantity field

9.

Quantity = 2

10. Destination Type = Expense

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11. Location = M1-Seattle

12. Requestor = Smith, Mr. Jonathan


13. Save

14. (B) Header

15. Record your receipt number.

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 34

Note: You can use iSupplier Portal to allow your suppliers to record ASNs. Deliveries must still
be processed using this window, but much of the information will already be recorded and as a
result, receipt processing cost and time may be lower.
Note: You can only override the default destination type if the RCV: Allow Routing Override is
set to Yes. Also, the Enforce Ship-To option will determine if you can override the Ship-To
location on the expected receipt. You can set this Action for this option to Warning, Reject or
None. Set the RCV: Print Receipt Traveler to Yes in order to have a Receipt Traveller printed
automatically. The RCV: Processing Mode profile option determines how receipts are
processed:

Setting

Meaning

Online

The user will not be able to perform any other application activities until the
process completes.

Immediate

The window will start running Receiving Transaction Processor as a


background process. The system will not hold the screen and the user can do
something else..

Batch

Control is returned to the User immediately so other application activities


may be performed. Running Concurrent Program Receiving Transaction
Processor (RVCTP) will process the transaction. Typically, you will run this
program periodically based on processing and system requirements.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 35

Guided Demonstration - Create an Express Receipt (Required)


Responsibility: XXPurchasing, Vision Operations
(N) Receiving > Receipts (M1 - Seattle Manufacturing)
Find Expected Receipts
1.

Purchase Order = Your Purchase Order from #1.

2.

Supplier = XXIBM Corporation

3.

Item = XXSoftware

4.

(B) Find

Note: In order to process an express receipt, all expected receipts queried must be from the same
supplier!
Record Receipt Header Details
5.

Packing Slip = PS-XX

6.

Freight Carrier = UPS

Note: The Receipt Header window opens on top of the Receipts window. When you have
completed the Receipt Header window, click in the Receipt window, which is located behind the
Receipt Header window to navigate to it.
Create the Express Receipt
7.

(M) Window > Receipts (M1)

8.

(B) Express

9.

Destination Type = Final Destination

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10. (B) OK

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11. Save

12. (B) Header

13. Record your receipt number.

Note: If the Destination Type is Final Destination, to process the receipt as an express receipt,
the requestor field must have been filled out on the purchase order or release!

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 36

Review Receiving Transactions


14. Open the Find Receiving Transactions window:
15. (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)
16. In the Receipt field, enter the receipt number.
17. (B) Find
18. (B) Transactions to open the Receipt Transaction Summary window.
19. Review your receipt.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 37

Guided Demonstration - Create a Cascade Receipt (Required)


Responsibility: XXPurchasing, Vision Operations
(N) Receiving > Receipts (M1 - Seattle Manufacturing)
Find Expected Receipts
1.

Purchase Order = Your Purchase Order from #1.

2.

Supplier = XXIBM Corporation

3.

Item = XXMonitor

4.

(B) Find

Note: In order to process a cascade receipt, you must query expected receipts for a specific
supplier and item.
Record Receipt Header Details
5.

Packing Slip = PS-XX

6.

Freight Carrier = UPS

Note: The Receipt Header window opens on top of the Receipts window. When you have
completed the Receipt Header window, click in the Receipt window, which is located behind the
Receipt Header window to navigate to it.
Create the Cascade Receipt
7.

(M) Window > Receipts (M1)

8.

(B) Cascade to create a Cascade receipt.

9.

Cascade Quantity = 6

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10. Unit of Measure = Each

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11. (B) OK

12. Note that the 6 items are applied to the expected receipt.
13. Save

14. (B) Header

15. Record your receipt number.


Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 38

Note: Because the routing type was Standard Routing, these inventory items will show a
destination type of Receiving. The items are delivered to inventory in a subsequent step.
Complete the Delivery for a Line of the Cascade Receipt (we will inspect the other
later)
16. Open the Receiving Transactions window:
17. (N) Receiving > Receiving Transactions (M1 - Seattle Manufacturing)
18. In the Receipt field, enter the number of the Cascade Receipt.
19. (B) Find
20. (T) Order Information
21. Select PO Line 2, Shipment 2 (quantity of 2 available to deliver) by selecting the checkbox
to the left of the Quantity field. We will inspect the other item in a later lab.
Note: If you did not fill in requestor and subinventory information on the purchase order, you
will need to do that now!
22. Save
23. Close the Receiving Transactions window.
Review Receiving Transactions
24. Open the Find Receiving Transactions window:

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25. (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)


26. In the Receipt field, enter the receipt number.
27. (B) Find

28. (B) Transactions to open the Receipt Transaction Summary window.

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29. Review your receipt.

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 39

Practice - Create Items


Overview
In this practice you will create items that you will write a purchase order for and finally receive
in subsequent practices.

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Create an Expense Item


2.

Create an item that will be expensed. Use the following information:

3.

Open the Master Item window


Item = XXSoftware
Description = Expensed Item
Primary Unit of Measure = Each
Item Status field = Active
Purchased = Checked
Purchasable = Checked
Buyer = Stock, Ms. Pat
List Price = 450
Expense Account = 01-510-7530-0000-000

4.

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In the Receipt Date Control areas Action field, use the list of values to select Warning.
Days Early = 5
Days Late = 5
Allow Substitute Receipts = Yes
Receipt Routing = Standard
Enforce Ship-To = Warning

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 40

Enable the Item in an Inventory Organization


Assign the item to the following inventory organizations:

Org

Name

Assigned

M1

Seattle Manufacturing

Checked

M2

Boston Manufacturing

Checked

M3

Dallas Manufacturing

Checked

Create an Inventory Item


Item = XXMonitor
Description = Inventory Item
Primary Unit of Measure = Each
Item Status = Active
Inventory Item = Checked
Purchased = Checked
Purchasable = Checked
Use Approved Supplier = Unchecked
Buyer = Stock, Ms. Pat
List Price = 250
5.

In the Receipt Date Controls areas Action field, use the list of values to select Warning.
Days Early = 5
Days Late = 5
Allow Substitute Receipts = Yes
Receipt Routing field = Standard

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Enable the Item in an Inventory Organization

Assign the item to the following inventory organizations:

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M1
M2
M3

Name

Assigned

Seattle Manufacturing

Checked

Boston Manufacturing

Checked

Dallas Manufacturing

Checked

Create an Item that will be Capitalized and Depreciated after Purchase


Item = XXComputerPC
Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 41

Description = High Speed Computer


Primary Unit of Measure = Each
Item Status field = Active
Purchased = Checked
Purchasable = Checked
Use Approved Supplier = Unchecked
Default Buyer = Stock, Ms. Pat
List Price = 1200
Asset Category = COMPUTER-PC

In the Receipt Date Control areas Action field, use the list of values to select Warning.
Days Early and Days Late = 5
Allow Substitute Receipts = Yes
Receipt Routing = Inspection
Enable the Item in an Inventory Organization
Assign the item to the following inventory organizations:

Org

Name

Assigned

M1

Seattle Manufacturing

Checked

M2

Boston Manufacturing

Checked

M3

Dallas Manufacturing

Checked

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 42

Solution - Create Items


Log on to the System
User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations
Create an Expense Item
1.

Choose the organization:

2.

(N) Change Organization

3.

From the list of values, choose M1-Seattle Manufacturing and click OK

4.

(N) Items > Master Items


Item = XXSoftware
Description = Expensed Item
Primary Unit of Measure = Each
Item Status field = Active

5.

(T) Purchasing
Purchased = Checked
Purchasable = Checked
Buyer = Stock, Ms. Pat
Use Approved Supplier = Unchecked
List Price = 450
Expense Account = 01-510-7530-0000-000

6.

Save

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Receiving
Chapter 9 - Page 43

7.

(T) Receiving

8.

In the Receipt Date Control areas Action field, use the list of values to select Warning.
Days Early = 5
Days Late = 5
Allow Substitute Receipts = Yes
Receipt Routing = Standard
Enforce Ship-To = Warning

9.

Save

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Receiving
Chapter 9 - Page 44

Enable the Item in an Inventory Organization


10. (M) Tools > Organization Assignment
11. Assign the item to the following inventory organizations:

Org

Name

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Assigned

M1

Seattle Manufacturing

Checked

M2

Boston Manufacturing

Checked

M3

Dallas Manufacturing

Checked

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12. Save

13. Close the Organization Assignment and Master Item windows.


Create an Inventory Item

14. (N) Items > Master Items


Item = XXMonitor
Description = Inventory Item

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 45

15. (T) Main


Primary Unit of Measure = Each
Item Status = Active
16. (T) Inventory
Inventory Item = Checked
17. Save

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18. (T) Purchasing


Purchased = Checked
Purchasable = Checked
Use Approved Supplier = Unchecked
Buyer = Stock, Ms. Pat
List Price = 250

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19. Save

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 46

20. (T) Receiving


21. In the Receipt Date Controls areas Action field, use the list of values to select Warning.
Days Early = 5
Days Late = 5
Allow Substitute Receipts = Yes
Receipt Routing field = Standard
22. Save

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Receiving
Chapter 9 - Page 47

Enable the Item in an Inventory Organization


23. (M) Tools > Organization Assignment
Assign the item to the following inventory organizations:

Org

Name

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Assigned

M1

Seattle Manufacturing

Checked

M2

Boston Manufacturing

Checked

M3

Dallas Manufacturing

Checked

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24. Save

25. Close the Organization Assignment and the Master Item windows.
Create an Item that will be Capitalized and Depreciated after Purchase
26. (N) Items > Master Items
Item = XXComputerPC
Description = High Speed Computer
Primary Unit of Measure = Each
Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 48

Item Status field = Active


27. (T) Purchasing
Purchased = Checked
Purchasable = Checked
Use Approved Supplier = Unchecked
Default Buyer = Stock, Ms. Pat
List Price = 1200
Asset Category = COMPUTER-PC
28. Save

29. (T) Receiving

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30. In the Receipt Date Control areas Action field, use the list of values to select Warning.
Days Early and Days Late = 5
Allow Substitute Receipts = Yes
Receipt Routing = Inspection
31. Save

Enable the Item in an Inventory Organization


Enable the item in the following inventory organizations:

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 49

Org

Name

Assigned

M1

Seattle Manufacturing

Checked

M2

Boston Manufacturing

Checked

M3

Dallas Manufacturing

Checked

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 50

Practice - Create a Standard Purchase Order


Overview
In this practice you will use the items you set up to create a standard purchase order.

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Create a Standard Purchase Order


2.

Open the Purchase Orders window


Type = Standard Purchase Order
Supplier = Advanced Network Devices
Site = SANTA CLARA
Description = XXComputer Hardware

Enter Terms and Conditions


Payment = Immediate
Pay On = Blank

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Enter Items
3.

Enter the items according to the following table:

Num
1
2
3

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Item

Quantity

Price

Promised

XXSoftware

10

450 Blank

XXMonitor

10

250 Blank

XXComputerPC

1200 Today + 7 days

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 51

Enter Shipments
4.

Enter the following shipments for the XXSoftware item.

Num

Org

Ship-To

UOM

Quantity

Promised

M1

M1-Seattle

Each

In 1 month

M1

M1-Seattle

Each

In 2 months

M1

M1-Seattle

Each

In 3 months

Match Approval Level = 2-way


Invoice Match Option = PO
5.

Enter the following shipments for the XXMonitor item.

Num

Org

Ship-To

UOM

Quantity

Promised

M1

M1-Seattle

Each

In 1 month

M1

M1-Seattle

Each

In 2 months

M1

M1-Seattle

Each

In 3 months

Match Approval Level = 3-way


Invoice Match Option = PO
6.

Record your purchase order number.

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Complete the Internal Distributions for the Expensed item


7.

Complete the internal distribution according to the following table:

Num

Type

8.

Expense

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Quantity
4

Charge

01-520-7530-0000-000

Repeat the steps above until ALL shipments have a completed internal distribution.

Complete the Internal Distributions for the Inventory item


9.

Complete the internal distribution according to the following table:

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 52

Num

Type

Inventory

Requestor
Smith, Mr. Jonathon

Subinventory
Stores

Quantity
4

Note: The type of the item is Inventory. For Inventory items, the charge account cannot be
changed. Account generator builds it based on the accounts in the inventory organization!
If the accounts are not being built the way you need them to be, you can modify the account
generator to build them the way you need them to be built.
10. Repeat the steps above until ALL shipments have a completed internal distribution.
Approve the Document
11. Record your purchase order number.
Verify Distribution Information
12. Verify that each distribution for XXSoftware has requestor information recorded.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 53

Solution - Create a Standard Purchase Order


Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Create a Standard Purchase Order


2.

Open the Purchase Orders window:

(N) Purchase Orders > Purchase Orders


Type = Standard Purchase Order
Supplier = Advanced Network Devices
Site = SANTA CLARA
Ship-to = M1-Seattle
Bill-to = V1-New York
Description = XXComputer Hardware

Enter Terms and Conditions


3.

Navigate to the Terms and Conditions window:

(B) Terms
Payment = Immediate
Pay On = Blank

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4.

Save

5.

Close the Terms and Conditions window to return to the Purchase Orders window.

Enter Items

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6.

(T) Items

7.

Enter the items according to the following table:

Num
1
2
3

Item

Quantity

Price

Promised

XXSoftware

10

450 Blank

XXMonitor

10

250 Blank

XXComputerPC

1200 Today + 7 days

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 54

Note: Need-by and Promised-by are only required for planned items. However, they are
necessary for some of the supplier performance reports.
8.

Save

Enter Shipments
9.

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Place cursor in the Description field for the XXSoftware item

10. Navigate to the Shipments window:

(B) Shipments

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11. Enter the following shipments for the XXSoftware item.

Num
1
2
3

Org

Ship-To

UOM

Quantity

Promised

M1

M1-Seattle

Each

In 1 month

M1

M1-Seattle

Each

In 2 months

M1

M1-Seattle

Each

In 3 months

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Receiving
Chapter 9 - Page 55

12. Save

13. (T) More


Match Approval Level = 2-way
Invoice Match Option = PO
14. Save

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15. Close the Shipments window to return to the Purchase Orders window.

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Receiving
Chapter 9 - Page 56

16. Place cursor in the Description field for the XXMonitor item.
17. Navigate to the Shipments window:

(B) Shipments

18. Enter the following shipments for the XXMonitor item.

Num

Org

Ship-To

UOM

Quantity

Promised

M1

M1-Seattle

Each

In 1 month

M1

M1-Seattle

Each

In 2 months

M1

M1-Seattle

Each

In 3 months

19. Save

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20. (T) More


Match Approval Level = 3-way
Invoice Match Option = PO
21. Save

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Receiving
Chapter 9 - Page 57

22. Close the Shipments window to return to the Purchase Orders window.
23. Record your purchase order number.
Complete the Internal Distributions for the Expensed item
24. Click in the Description field for the XXSoftware item.
25. (B) Shipments
26. (B) Distributions

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27. Complete the internal distribution according to the following table:

Num
1

Type
Expense

Requestor
Smith, Mr. Jonathon

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Quantity

Charge

01-520-7530-0000-000

28. Save

29. Close the Distributions window.

30. Repeat the steps above until ALL shipments have a completed internal distribution.
31. Save

Complete the Internal Distributions for the Inventory item


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Receiving
Chapter 9 - Page 58

32. Place cursor in the Description field for the XXMonitor item.
33. (B) Shipments
34. (B) Distributions
35. Complete the internal distribution according to the following table:

Num

Type

Inventory

Requestor
Smith, Mr. Jonathon

Subinventory
Stores

Quantity
4

Note: The type of the item is Inventory. For Inventory items, the charge account cannot be
changed. Account generator builds it based on the accounts in the inventory organization!
If the accounts are not being built the way you need them to be, you can modify the account
generator to build them the way you need them to be built.
36. Save
37. Close the Distributions window.
38. Repeat the steps above until ALL shipments have a completed internal distribution.
39. Save
40. Close the Distributions and Shipments windows.
Approve the Document
41. Record your purchase order number.
42. (B) Approve
Submit for Approval = Checked
Uncheck all other options

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43. (B) OK in the Approve Document window.

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44. (B) OK to close the note window.


Verify Distribution Information
45. Query up your PO

46. Verify that each distribution for XXMonitor has requestor and subinventory information
recorded

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Receiving
Chapter 9 - Page 59

47. Verify that each distribution for XXSoftware has requestor information recorded.

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Receiving
Chapter 9 - Page 60

Practice - Create a Standard Receipt


Overview
In this practice you will create a standard receipt against the purchase order you created in the
prior practice.

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Log on to the System
Log on to the system using the following information.
User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations
Find Expected Receipts
Open the Find Expected Receipts window:
Purchase Order = Your Purchase Order from Lab #1.
Supplier = Advanced Network Devices
Item = XXComputerPC
Fill in Receipt Header Details
Packing Slip = PS-XX
Freight Carrier = UPS

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Note: The Receipt Header window opens on top of the Receipts window. When you have
completed the Receipt Header window, click in the Receipt window, which is located
behind the Receipt Header window to navigate to it.
Process a Standard Receipt
Quantity = 2
Destination Type = Expense
Location = M1-Seattle
Requestor = Smith, Mr. Jonathan
14. Record your receipt number.

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Receiving
Chapter 9 - Page 61

Note: You can use iSupplier Portal to allow your suppliers to record ASNs. Deliveries
must still be processed using this window, but much of the information will already be
recorded and as a result, receipt processing cost and time will be lower.
Note: You can only override the default destination type if the RCV: Allow Routing
Override is set to Yes.
Note: The RCV: Processing Mode profile option determines how receipts are processed:

Setting

Meaning

Online

The user will not be able to perform any other application activities until the
process completes.

Immediate

The window will start running Receiving Transaction Processor as a


background process. The system will not hold the screen and the user can do
something else..

Batch

Control is returned to the User immediately so other application activities


may be performed. The transaction will be processed by running Concurrent
Program Receiving Transaction Processor (RVCTP). Typically, customers
will run this program periodically based on their processing and system
requirements.

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Receiving
Chapter 9 - Page 62

Solution - Create a Standard Receipt


Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Find Expected Receipts


2.

Open the Find Expected Receipts window:

3.

(N) Receiving > Receipts (M1 - Seattle Manufacturing)


Purchase Order = Your Purchase Order from Lab #1.
Supplier = Advanced Network Devices
Item = XXComputerPC

(B) Find

Fill in Receipt Header Details


Packing Slip = PS-XX
Freight Carrier = UPS
Note: The Receipt Header window opens on top of the Receipts window. When you have
completed the Receipt Header window, click in the Receipt window, which is located
behind the Receipt Header window to navigate to it.
Process a Standard Receipt

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4.

(M) Window > Receipts (M1)

5.

Select the checkbox to the left of the Quantity field


Quantity = 2
Destination Type = Expense
Location = M1-Seattle
Requestor = Smith, Mr. Jonathan

6.

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Save

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Receiving
Chapter 9 - Page 63

7.

(B) Header

8.

Record your receipt number.


Note: You can only override the default destination type if the RCV: Allow Routing
Override is set to Yes.
Note: You can use iSupplier Portal to allow your suppliers to record ASNs. Deliveries
must still be processed using this window, but much of the information will already be
recorded and as a result, receipt processing cost and time will be lower.
Note: The RCV: Processing Mode profile option determines how receipts are processed:

Setting

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Meaning

Online

The user will not be able to perform any other application activities until the
process completes.

Immediate

The window will start running Receiving Transaction Processor as a


background process. The system will not hold the screen and the user can do
something else..

Batch

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Control is returned to the User immediately so other application activities


may be performed. The transaction will be processed by running Concurrent
Program Receiving Transaction Processor (RVCTP). Typically, customers
will run this program periodically based on their processing and system
requirements.

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 64

Practice - Create an Express Receipt


Overview
In this practice you will create an express receipt against the purchase order you created

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Find Expected Receipts


2.

Open the Find Expected Receipts window:


Purchase Order = Your Purchase Order from Lab #1
Supplier = Advanced Network Devices
Item = XXSoftware

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Note: In order to process an express receipt, all expected receipts queried must be from the
same supplier!
Record Receipt Header Details
Packing Slip = PS-XX
Freight Carrier = UPS

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Note: The Receipt Header window opens on top of the Receipts window. When you have
completed the Receipt Header window, click in the Receipt window, which is located
behind the Receipt Header window to navigate to it.
Create the Express Receipt
Destination Type = Final Destination
3.

Record your receipt number.

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 65

Note: If the Destination Type is Final Destination, to process the receipt as an express
receipt, the requestor field must have been filled out on the purchase order or release!
Review Receiving Transactions
4.

Open the Find Receiving Transactions window:

5.

Review your receipt.

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Receiving
Chapter 9 - Page 66

Solution - Create an Express Receipt


Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Find Expected Receipts


2. (N) Receiving > Receipts (M1 - Seattle Manufacturing)
Purchase Order = Your Purchase Order from Lab #1
Supplier = Advanced Network Devices
Item = XXSoftware
3. (B) Find
Note: In order to process an express receipt, all expected receipts queried must be from the
same supplier!
Record Receipt Header Details
Packing Slip = PS-XX
Freight Carrier = UPS
Note: The Receipt Header window opens on top of the Receipts window. When you have
completed the Receipt Header window, click in the Receipt window, which is located
behind the Receipt Header window to navigate to it.
Create the Express Receipt
4.

(M) Window > Receipts (M1)

5.

(B) Express to create an Express receipt.


Destination Type = Final Destination

6.

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(B) OK

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Receiving
Chapter 9 - Page 67

7.

Save

8.

(B) Header

9.

Record your receipt number.


Note: If the Destination Type is Final Destination, to process the receipt as an express
receipt, the requestor field must have been filled out on the purchase order or release!

Review Receiving Transactions


10. Open the Find Receiving Transactions window:
11. (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)
12. In the Receipt field, enter the receipt number.
13. (B) Find
14. (B) Transactions to open the Receipt Transaction Summary window.
15. Review your receipt.

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Receiving
Chapter 9 - Page 68

Practice - Create a Cascade Receipt


Overview
In this practice you will create an cascade receipt against the purchase order you created.

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Find Expected Receipts


2.

Open the Find Expected Receipts window:


Purchase Order = Your Purchase Order from Lab #1.
Supplier = Advanced Network Devices
Item = XXMonitor

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Note: In order to process a cascade receipt, you must query expected receipts for a specific
supplier and item.
Record Receipt Header Details
Packing Slip = PS-XX
Freight Carrier = UPS

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Note: The Receipt Header window opens on top of the Receipts window. When you have
completed the Receipt Header window, click in the Receipt window, which is located
behind the Receipt Header window to navigate to it.
Create the Cascade Receipt
Cascade Quantity = 6
Unit of Measure = Each

Note: Because the routing type was Standard Routing, these inventory items will show a
destination type of Receiving. The items are delivered to inventory in a subsequent step.
Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 69

Complete the Delivery for the a Line of the Cascade Receipt (we will inspect the
other later)
3.

Open the Receiving Transactions window:

4.

In the Receipt field, enter the number of the Cascade Receipt.

5.

Select PO Line 2, Shipment 2 (qty of 2 available to deliver) by selecting the checkbox to the
left of the Quantity field. We will inspect the other item in a later lab.
Note: If you did not fill in requestor and subinventory information on the purchase order,
you will need to do that now!

Review Receiving Transactions


6.

Open the Find Receiving Transactions window.

7.

In the Receipt field, enter the receipt number.

8.

Review your receipt.

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Receiving
Chapter 9 - Page 70

Solution - Create a Cascade Receipt


Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Find Expected Receipts


2.

Open the Find Expected Receipts window:

3.

(N) Receiving > Receipts (M1 - Seattle Manufacturing)


Purchase Order = Your Purchase Order from Lab #1.
Supplier = Advanced Network Devices
Item = XXMonitor

(B) Find
Note: In order to process a cascade receipt, you must query expected receipts for a specific
supplier and item.

Record Receipt Header Details


Packing Slip = PS-XX
Freight Carrier = UPS

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Note: The Receipt Header window opens on top of the Receipts window. When you have
completed the Receipt Header window, click in the Receipt window, which is located
behind the Receipt Header window to navigate to it.
Create the Cascade Receipt
4.

(M) Window > Receipts (M1)

5.

(B) Cascade to create a Cascade receipt.


Cascade Quantity = 6
Unit of Measure = Each

6.

(B) OK

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Chapter 9 - Page 71

7.

Note that the 6 items are applied to the expected receipt.

8.

Save

9.

(B) Header

10. Record your receipt number.

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Note: Because the routing type was Standard Routing, these inventory items will show a
destination type of Receiving. The items are delivered to inventory in a subsequent step.

Complete the Delivery for the a Line of the Cascade Receipt (we will inspect the
other later)

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11. Open the Receiving Transactions window:

(N) Receiving > Receiving Transactions (M1 - Seattle Manufacturing)

12. In the Receipt field, enter the number of the Cascade Receipt.
13. (B) Find

14. (T) Order Information

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Receiving
Chapter 9 - Page 72

15. Select PO Line 2, Shipment 2 (qty of 2 available to deliver) by selecting the checkbox to the
left of the Quantity field. We will inspect the other item in a later lab.
Note: If you did not fill in requestor and subinventory information on the purchase order,
you will need to do that now!
16. Save
17. Close the Receiving Transactions window.
Review Receiving Transactions
18. Open the Find Receiving Transactions window:

(N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)

19. In the Receipt field, enter the receipt number.


20. (B) Find
21. (B) Transactions to open the Receipt Transaction Summary window.
22. Review your receipt.

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Receiving
Chapter 9 - Page 73

Control the Receiving Transaction Processor

Control the Receiving Transaction


Processor

Online
Immediate
Batch

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Control the Receiving Transaction Processor


The setting of the RCV: Processing Mode profile determines the processing mode used after
you save your work for receiving transactions. The profile option can have one of three
possible settings:
Online
The Receiving Transaction Processor is called directly to process the receipt (no concurrent
request is submitted). The form is not immediately returned to user control, so the user will
not be able to perform any other application activities until the process completes. Form
response time is the slowest of the three options, but errors processing the receipt become
obvious immediately.
Immediate
The transaction goes to the interface table, and the Receiving Transaction Processor is called
for the group of transactions that you entered since you last saved your work. The form will
start running the Receiving Transaction Processor as a background process. Control is
returned to the user immediately so other application activities may be performed. Form
response time is fast, but a concurrent process is run each time you process a receipt. You
must occasionally check the concurrent manager to ensure the concurrent request completes

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Receiving
Chapter 9 - Page 74

without errors. If an error occurs, the problem must be fixed. You use the Transaction Status
Summary form to delete errored transactions and force them to reprocess. This is important
especially for transactions destined for Inventory or Shop Floor. Until the receipt processes
successfully, no receipt accruals are generated and sent to the general ledger. If the problem is
not reconciled by period end, accruals will be out of balance and understated in General
Ledger.
Batch
The transaction goes to the interface table, where it will be picked up the next time the
Receiving Transaction Processor runs. Control is returned to the user immediately so other
application activities may be performed. Form response time is fast. The transaction will be
processed by running the Receiving Transaction Processor process. This program must be
scheduled to run periodically. The longer the interval, the more data the program will process
each time it runs. Errors are handled the same way they are handled when the mode is set to
Immediate. Typically, customers will run this program periodically based on their processing
and system requirements. For example, you may elect to run the process at a time when there
is relatively low database activity to help balance the load on system resources. Using this
method, receipt accruals are not processed until the concurrent process completes
successfully. Also, inventory value and on-hand quantities are not updated until the concurrent
request completes.

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Receiving
Chapter 9 - Page 75

Receiving Tolerances

Receiving Tolerances

You can set receiving tolerances for quantities


and for on-time delivery.
You can determine what actions occur when the
receipt is outside of the tolerance
None
Reject
Warning

You can define receiving tolerances at the


organization, item, and/or order level.

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Receiving Tolerances
You can define days early and late that you will accept a shipment. You can also define what,
if any percentage above the quantity ordered you will receive.
You have three actions you can place to enforce those tolerances:
None - no action is taken
Reject - The receiver is unable to receive the shipment. The buyer will have to either
adjust the tolerances on the PO, or change either the quantity and need by date on the PO.
Warning - The receiver will see a pop up window if a tolerance is exceeded. The
receiver has the option of accepting the shipment or turning the shipment away.

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Receiving
Chapter 9 - Page 76

Control Numbers

Control Numbers
Purchasing uses three types of inventory control
numbers:
Lot Numbers
Serial Numbers
Stock Locators

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Control Numbers
Lot Numbers
A lot number is a unique number assigned to a certain batch or process run of a product. You
can assign expiration dates for each lot number. Lot number control is an item attribute that
can be found and set by choosing the Inventory tab in either the Master Items or Organization
Items windows.
Serial Numbers
A serial number is a unique number assigned to an individual item. When an item under serial
number control is received, the user performing the transaction will be forced to enter a unique
serial number for each item. Serial number control is an attribute on the inventory tab of the
item (either in Master Items or Organization Items).
Stock Locators
You use locators to identify physical areas where you store inventory items. Item quantities
can be tracked by locator. Items can also be restricted to specific locators. An example of a
stock locator might be Row, Rack, Bin number. You can require Stock Locator control at
the inventory organization level, the subinventory level, or the item level.

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Receiving
Chapter 9 - Page 77

Agenda

Agenda

Understand the Receiving process


Understand receipt routing
Understand receipt processing methods
Understand Substitute receipts, Unordered
Receipts, Returns and Corrections and Pay on
Receipt
Identify key standard reports
Understand setup options
Understanding additional implementation
considerations

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Receiving
Chapter 9 - Page 78

Substitute Receipts

Substitute Receipts

Yes
Receive item B
instead of A
Return

Is B a valid
substitute?

Delivery

No

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Substitute Receipts
When entering items in the Item Master, you have the ability to identify parts that can be
substituted for each other. In Purchasing, you can receive predefined substitute items when
you allow suppliers to ship alternatives to the item you order. Within the group of planning
applications (MRP, DRP, ASCP), only ASCP can be set up to recognize substitute part
numbers.

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Receiving
Chapter 9 - Page 79

Unordered Receipts

Unordered Receipts

Yes
Unordered
receipt

Match to
PO?

Delivery

No
Requires matching
or return

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Unordered Receipts
You can receive items from a supplier when you do not have or do not know a corresponding
purchase order number. These items are tracked on the system while you wait for a buyer to
specify which purchase order should be used, or if the items are to be returned to the supplier.

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Receiving
Chapter 9 - Page 80

Overview of Returns and Corrections

Overview of Returns and Corrections


Returns
Identify
item
for return
Receiving
Return to supplier

Return delivery

RMA, reason code (optional)

Corrections
Identify
error in
receiving

Correct as
many
transactions
as necessary

Receiving

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Overview of Returns and Corrections


Returns
You can return delivered items to receiving and return received or delivered externally sourced
items to the supplier if the purchase order has neither been canceled nor finally closed. You
can also return to the supplier unordered receipts that have not been matched. Optionally
specify additional return information such as a Reason Code and RMA (Return Material
Authorization) number.

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Corrections
Purchasing provides the capability to correct any receiving transaction, except another
correction and a return to a receiving transaction. Each transaction is done individually
correcting the previous transactions until all applicable transactions are corrected.

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 81

Entering Returns

Entering Returns
Return from
inventory

Return from
receiving

To the supplier or customer

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Entering Returns
Use the Receiving Returns window to enter returns against receipts, deliveries, transfers,
acceptances, and rejections. You may enter an RMA number from your supplier, as well as
specify any user defined return reason. You can return delivered items to a receiving location
when they are routed to the wrong destination, require inspection, or require a return to a
supplier or a customer in a later transaction.

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When you perform a Return to Supplier transaction, Purchasing reopens the associated
purchase order for the return quantity by reducing the original receipt quantity. You cannot
perform a Return to Supplier transaction against a Finally Closed or Cancelled purchase order.
When you perform a Return to Supplier transaction, Purchasing automatically creates both a
Return to Receiving and a Return to Supplier transaction.

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 82

Entering Corrections

Entering Corrections

Quantity on Hand

Item Costs

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Entering Corrections
Corrections are entered by using the adjustment quantity, either positive or negative. To
reduce a ten-item delivery to nine, enter -1 in the Quantity field. To increase a ten-item
delivery to eleven, enter 1 in the Quantity field. You cannot create supply when none exists.
For example, if you receive and deliver 10 items before discovering that you actually delivered
11 items, you cannot simply increase the delivery quantity to 11. First you must increase your
receipt transaction from 10 to 11. Then you can increase your delivery transaction from 10 to
11.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 83

Difference between Returns and Corrections

Difference between Returns and


Corrections
Receiving Return

Receiving Correction

Physical return of goods

No physical return

to supplier

of goods to supplier

Updates quantity on hand

Updates quantity on hand

Updates cost

Updates cost

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Difference between Returns and Corrections


Receiving Return
You can return delivered items to receiving and return received or delivered externally sourced
items to the supplier if the purchase order has neither been canceled nor finally closed. You
can also return to the supplier unordered receipts that have not been matched.
You can also optionally specify additional return information such as a Reason Code and RMA
(Return Material Authorization) number.

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Receiving Correction
Purchasing provides the capability to correct any receiving transaction, except another
correction and a return to a receiving transaction. Each transaction is done individually
correcting the previous transactions until all applicable transactions are corrected.

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 84

Guided Demonstration - Inspect and Deliver a Receipt (Required)


Responsibility: XXPurchasing, Vision Operations
(N) Receiving > Receiving Transactions (M1-Seattle Manufacturing)
Perform a Quality Inspection
1.

Receipt = Your receipt number

2.

(B) Find

3.

(B) Inspect

Note: If Oracle Quality is installed and at least one inspection plan exists for the transaction,
both the Enter Quality Results option in the Tools menu and the Quality button on the menu bar
will be enabled. If the QA: PO Inspection Profile option is set to Quality, when you click the
Inspect button, it opens the Quality Inspection window that you defined, instead of the
Purchasing Inspection window.
4.

Enter inspection results according to the table:

Item

Inspect
Result

Quantity

Quality Code

Reason

Comment

Code

XXMonitor

Accept

Above
Average

Blank

Passed
inspection

XXMonitor

Reject

Below
Average

CompDefect

Failed
inspection

5.

(B) OK

6.

Save

7.

Close the Receiving Transactions window.

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Deliver Goods to a Final Destination


8.

Open the Receiving Transactions window:

9.

(N) Receiving > Receiving Transactions

10. In the Receipt field, enter your receipt number.

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 85

11. (B) Find


12. Complete the Receiving Transaction according to the following table:

Inspection

Qty

UOM

Destination

Item

Location

Type
Accepted

Defaults

Each

Inventory

XXMonitor

M1-Seattle

Note: Youll need to use this window carefully. Determine which record was the accepted item
and which was the rejected item!
13. Save
Review Receiving Transactions
14. Open the Find Receiving Transactions window:
15. (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)
16. In the Receipt field, enter your receipt number.
17. (B) Find
18. (B) Transactions to open the Receipt Transaction Summary window.
19. Review your receipt.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 86

Guided Demonstration - Process a Return to Supplier (Optional)


Responsibility: XXPurchasing, Vision Operations
(N) Receiving > Returns (M1 Seattle Manufacturing)
You can use the Returns window to return goods to a supplier OR to a customer. You may
return goods to a customer if you had received defective goods, repaired them and are now ready
to return them. In this exercise, you will return the goods that failed inspection to the supplier.
Return Goods to a Supplier
1.

In the Receipt field enter your receipt number from the prior lab.

2.

(T) Transaction Details

3.

Transaction Type = Reject

4.

(B) Find

5.

Click the line selector check box to the left of the Quantity field.

6.

Enter return information according to the following table:

Qty

Return-To

Supplier

7.

(T) Details

8.

Reason = CompDefect

9.

Save

Supplier
XXIBM Corporation

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Review Receiving Transactions

RMA Number
XXRMA

Item
XXMonitor

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10. Open the Find Receiving Transactions window:


11. (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)
12. In the Receipt field, enter the receipt number.
13. (B) Find

14. (B) Transactions to open the Receipt Transaction Summary window.


Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 87

15. Review your receipt.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 88

Guided Demonstration - Correct a Receiving Error (Optional)


Responsibility: XXPurchasing, Vision Operations
(N) Receiving > Corrections
Warehouse personnel are missing two items youve processed as delivered. You realize that you
processed your express receipt too quickly and the last two items were not shipped.
Correct the Delivery Transaction
1.

Receipt = Your receipt from Express Receiving

2.

(T) Transaction Details

3.

Transaction Type = Deliver

4.

(B) Find

5.

(T) Order Information

6.

Select shipment number 3 (the last shipment for the item on your purchase order)

7.

Quantity = -2

8.

Comments = Correct error in receiving transaction

9.

Save

Correct the Receive Transaction


10. Navigate to the Corrections window
11. (N) Receiving > Corrections

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12. Receipt = Your receipt from the Express Receiving lab

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13. (T) Transaction Details

14. Transaction Type = Receive


15. (B) Find

16. (T) Order Information

17. Select shipment number 3 (the last shipment for the item on your purchase order)
18. Quantity = -2
Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 89

19. Comments = Correct error in receiving transaction


20. Save
Verify an Expected Receipt now Exists
21. Navigate to the Receipts window
22. (N) Receiving > Receipts
23. Number = Your purchase order number from #1
24. (T) Items
25. Item = XXSoftware
26. (B) Find
27. Note that you should now have an expected delivery for the last shipment of the
XXSoftware item.
Review Receiving Transactions
28. Open the Find Receiving Transactions window:
29. (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)
30. In the Purchase Order = Your purchase order number from #1
31. (B) Find

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32. Select your Express Receipt (should be the second shipment)

33. (B) Transactions to open the Receipt Transaction Summary window.


34. Review your receipt.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 90

Practice - Inspect and Deliver a Receipt


Overview
In this practice you will inspect and deliver a receipt. Half of the items you found to be
defective. You will deliver half to their final destination and the other half will be returned.

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Perform a Quality Inspection


2.

Open the Receiving Transactions window:


Purchase Order = Your receipt number

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Note: If Oracle Quality is installed and at least one inspection plan exists for the
transaction, both the Enter Quality Results option in the Tools menu and the Quality button
on the menu bar will be enabled. If the QA: PO Inspection Profile option is set to Quality,
when you click the Inspect button, it opens the Quality Inspection window that you defined,
instead of the Purchasing Inspection window.
3.

Enter inspection results according to the table:

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Item

Inspect
Result

Quantity

Quality
Code

Reason

Comment

Code

XXMonitor

Accept

Above
Average

Blank

Passed
inspection

XXMonitor

Reject

Below
Average

CompDefect

Failed
inspection

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 91

Deliver Goods to a Final Destination


4.

Open the Receiving Transactions window:

5.

In the Receipt field, enter your receipt number.

6.

Complete the Receiving Transaction according to the following table:

Inspection

Qty

UOM

Destination

Item

Location

Type
Accepted

Defaults

Each

Inventory

XXMonitor

M1-Seattle

Rejected

Defaults

Each

Receiving

XXMonitor

M1-Seattle

Note: Youll need to use this window carefully. Determine which record was the accepted
item and which was the rejected item!
7.

Save

Review Receiving Transactions


8.

Open the Find Receiving Transactions window:

9.

In the Receipt field, enter your receipt number.

10. Review your receipt.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 92

Solution - Inspect and Deliver a Receipt


Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Perform a Quality Inspection


2. Open the Receiving Transactions window:

(N) Receiving > Receiving Transactions (M1-Seattle Manufacturing)


Purchase Order = Your receipt number

3. (B) Find
4. (B) Inspect
Note: If Oracle Quality is installed and at least one inspection plan exists for the
transaction, both the Enter Quality Results option in the Tools menu and the Quality button
on the menu bar will be enabled. If the QA: PO Inspection Profile option is set to Quality,
when you click the Inspect button, it opens the Quality Inspection window that you defined,
instead of the Purchasing Inspection window.
5.

Enter inspection results according to the table:

Item

Inspect
Result

Quantity

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Quality
Code

Reason

Comment

Code

XXMonitor

Accept

Above
Average

Blank

Passed
inspection

XXMonitor

Reject

Below
Average

CompDefect

Failed
inspection

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6.

(B) OK

7.

Save

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 93

8.

Close the Receiving Transactions window.

Deliver Goods to a Final Destination


9.

Open the Receiving Transactions window:

(N) Receiving > Receiving Transactions

10. In the Receipt field, enter your receipt number.


11. (B) Find

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12. Complete the Receiving Transaction according to the following table:

Inspection

Qty

UOM

Destination
Type

Accepted

Defaults

Each

Inventory

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Rejected

Defaults

Each

Receiving

Item

Location

XXMonitor

M1-Seattle

XXMonitor

M1-Seattle

Note: Youll need to use this window carefully. Determine which record was the accepted
item and which was the rejected item!
13. Save

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 94

Review Receiving Transactions


14. Open the Find Receiving Transactions window:

(N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)

15. In the Receipt field, enter your receipt number.


16. (B) Find
17. (B) Transactions to open the Receipt Transaction Summary window.
18. Review your receipt.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 95

Practice - Process a Return to Supplier


Overview
You can use the Returns window to return goods to a supplier OR to a customer. You return
goods to a customer when you receive defective goods, repair them and then return them. In this
exercise, you will return the goods that failed inspection to the supplier.

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Return Goods to a Supplier


2.

Open the Receiving Returns window:

3.

In the Receipt field enter your receipt number from the prior lab.

4.

(T) Transaction Details


Transaction Type = Transfer
Qty

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Return-To

Supplier

Supplier

Advanced Network
Devices

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RMA Number

XXRMA

Reason = CompDefect

Review Receiving Transactions


5.

Open the Find Receiving Transactions window:

6.

In the Receipt field, enter the receipt number.


Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 96

Item

XXMonitor

7.

Review your receipt.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 97

Solution - Process a Return to Supplier


Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Return Goods to a Supplier


2.

Open the Receiving Returns window:

(N) Receiving > Returns (M1 Seattle Manufacturing)

3.

In the Receipt field enter your receipt number from the prior lab.

4.

(T) Transaction Details


Transaction Type = Transfer

5.

(B) Find

6.

Click the line selector check box to the left of the Quantity field.

Enter return information according to the following table:

Qty

Return-To

Supplier

Supplier
Advanced Network
Devices

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RMA Number

XXRMA

Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 98

Item

XXMonitor

7.

(T) Details
Reason = CompDefect

8.

Save

Review Receiving Transactions


9.

Open the Find Receiving Transactions window:

(N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)

10. In the Receipt field, enter the receipt number.


11. (B) Find
12. (B) Transactions to open the Receipt Transaction Summary window.
13. Review your receipt.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 99

Practice - Correct a Receiving Error


Overview
Warehouse personnel are missing two items youve processed as delivered. You realize that you
processed your express receipt too quickly and the last two items were not shipped. In this
practice you will correct a receiving error.

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Correct the Delivery Transaction


2.

Navigate to the Corrections window


Receipt = Your receipt from the Express Receiving lab

3.

(T) Transaction Details


Transaction Type = Deliver

4.

(T) Order Information

5.

Select shipment number 3 (the last shipment for the item on your purchase order)
Quantity = -2
Comments = Correct error in receiving transaction

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Correct the Receive Transaction


6.

Navigate to the Corrections window


Receipt = Your receipt from the Express Receiving lab

7.

(T) Transaction Details


Transaction Type = Receive

8.

(T) Order Information


Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 100

9.

Select shipment number 3 (the last shipment for the item on your purchase order)
Quantity = -2
Comments = Correct error in receiving transaction

Verify an Expected Receipt now Exists


10. Navigate to the Receipts window
Number = Your purchase order number from Lab #1
Item = XXSoftware
11. Note that you should now have an expected delivery for the last shipment of the
XXSoftware item.
Review Receiving Transactions
12. Open the Find Receiving Transactions window:
In the Purchase Order = Your purchase order number from Lab #1
13. Select your Express Receipt
14. Review your receipt.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 101

Solution - Correct a Receiving Error


Log on to the System
1.

Log on to the system using the following information.


User Name = operations
Password = welcome
Responsibility = Purchasing, Vision Operations

Correct the Delivery Transaction


2.

Navigate to the Corrections window

(N) Receiving > Corrections


Receipt = Your receipt from the Express Receiving lab

3.

(T) Transaction Details


Transaction Type = Deliver

4.

(B) Find

5.

(T) Order Information

6.

Select shipment number 3 (the last shipment for the item on your purchase order)
Quantity = -2
Comments = Correct error in receiving transaction

7.

Save

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Correct the Receive Transaction

8. Navigate to the Corrections window


Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 102

(N) Receiving > Corrections


Receipt = Your receipt from the Express Receiving lab

9. (T) Transaction Details


Transaction Type = Receive
10. (B) Find
11. (T) Order Information
12. Select shipment number 3 (the last shipment for the item on your purchase order)
Quantity = -2
Comments = Correct error in receiving transaction
13. Save

Verify an Expected Receipt now Exists


14. Navigate to the Receipts window

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(N) Receiving > Receipts


Number = Your purchase order number from Lab #1

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15. (T) Items


Item = XXSoftware
16. (B) Find

Note that you should now have an expected delivery for the last shipment of the
XXSoftware item.
Review Receiving Transactions

17. Open the Find Receiving Transactions window:


Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 103

(N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)


In the Purchase Order = Your purchase order number from Lab #1

18. (B) Find


19. Select your Express Receipt (should be the second shipment)
20. (B) Transactions to open the Receipt Transaction Summary window.
21. Review your receipt.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 104

Overview of Pay on Receipt

Overview of Pay on Receipt


Pay on options:

Invoice consolidation
options:

By packing slip
Receipt
By receipt
Payables
Delivery

Invoice

By site

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Overview of Pay on Receipt


Purchasing works in conjunction with Payables to streamline the procurement process by
generating invoices to suppliers based on receipt transactions. Negotiate with key suppliers to
use Pay on Receipt. Every invoice created by the Pay on Receipt process is one less receipt
that needs to be manually keyed into Payables. Suppliers can still send the hard copy of the
invoice if a physical copy is necessary for archiving. Pay on Receipt enables you to
automatically create standard, unapproved invoices for payment of goods based on receipt
transactions. Invoices are created using a combination of receipt and purchase order
information, eliminating duplicate manual data entry and ensuring accurate and timely data
processing. Payment on Receipt is also known as Evaluated Receipt Settlement (ERS) and Self
Billing.

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You can setup your suppliers so the invoice can be based on receipt of goods or delivery of
goods to their final destination. The Invoice Summary Level, set at the Supplier Site, controls
the number of invoices generated.
Packing Slip - One invoice will be generated per packing slip. (highest number of
invoices)
Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 105

Receipt - One invoice will be generated per receipt.


Site - One invoice will be generated per supplier site (fewest invoices)

After receipt or delivery transactions are created, you must run the Pay on Receipt Autoinvoice
process to create invoices and automatically match them to their corresponding purchase
orders. The Pay on Receipt Autoinvoice process can be set up to run automatically. Set the
PO: Invoice Number Prefix to add a prefix of your choice to the invoice that is created. The
number is created based on the Invoice Summary Level.
Packing Slip - The packing slip number is used as a basis to generate the invoice number.
Receipt - The receipt number is used as a basis to generate the invoice number.
Site - The date is used as a basis to generate the invoice number.
Set the PO: ERS Aging Period profile option to a number of days after the receipt to actually
create the invoice when the Pay on Receipt Autoinvoice process runs. A delay will give you
time to enter corrections, adjustments and returns (if any) and will result in more accurate
invoices being created.

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Copyright Oracle Corporation, 2003. All rights reserved.

Receiving
Chapter 9 - Page 106

Agenda

Agenda

Understand the Receiving process


Understand receipt routing
Understand receipt processing methods
Understand Substitute receipts, Unordered
Receipts, Returns and Corrections and Pay on
Receipt
Identify key standard reports
Understand setup options
Understanding additional implementation
considerations

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Receiving
Chapter 9 - Page 107

Reports

Reports
Expected Receipts
Unordered Receipts
Substitute Receipts
Receiving Transactions Register
Receiving Exceptions
Receiving Value by Destination Account

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Reports
Expected Receipts Report
The Expected Receipts Report can be used to review all or specific supplier sourced expected
receipts or expected customer returns that have not yet been received for a particular date or a
range of dates. The report excludes purchase orders that are cancelled, closed, or closed for
receiving at the header, release, line, or shipment level. You can specify the expected receipts
you want to review.
Unordered Receipts
The Unordered Receipts Report lists all or selected unordered receipts. Unordered receipts
refer to received items that receivers could not match to purchase orders or return material
authorizations (RMAs).
Substitute Receipts Report
Use this report to review all or specific substitute receipts.
Receiving Transaction Register
The Receiving Transactions Register lists detail information about your receiving transactions.
The register is sorted by item, category, receipt number, document number, and transaction

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date. The three-part document number represents purchase order number, purchase order line
number, and purchase order shipment number.
Receiving Exceptions Report
Use the Receiving Exceptions Report to review receipts for which there is a receipt exception.
These receipts cannot be automatically closed for receiving or invoicing. You can enter a
receipt exception when you receive the item.
Receiving Value by Destination Account Report
The Receiving Value Report by Destination Account lists received items by purchase order
destination and distribution account. If you accrue both inventory and expense at the time of
receipt, you may have both inventory and expense as part of your receiving valuation account.

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Reports

Reports
Receiving Value
Receipt Adjustments
Receipt Traveler

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Reports (continued)
Receiving Value
The Receiving Value Report shows item quantity, valuation, and detailed receipt information
for your receiving inspection location.
Receipt Adjustments Report
Use this report to review purchase order shipments or internal requisition lines with corrections
or returns to vendor.
Receipt Traveler
The Receipt Traveler facilitates receiving inspection and delivery of goods you receive within
your organization. After you receive the goods, you can print receipt travelers and attach these
tickets to the goods.

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Summary

Summary
You should now be able be able to do the following:
Describe the process of receiving goods
Understand receipt routing
Understand receipt processing methods
Create Standard, Express, and Cascade receipts
Understand Substitute receipts, Unordered
Receipts, Returns and Corrections
Understand Pay on Receipt
Identify key reports
Understand setup options
Understand additional implementation
considerations

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