Oracle E-Business Suite Purchasing

Defaulting Rules in Purchase Orders

and Agreements: For Better
Configuration and Ease of Use
An Oracle White Paper
April 2014

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 2
 Defaulting Rules in Purchase Orders and
Agreements: For Better
Configuration and Ease of Use
INTRODUCTION
In order to simplify the
In todays business landscape, organizations adopt timely and fast execution of their acquisition-
process of creation of a
Purchase Order the users
related operations. This helps to complete their procurement cycles efficiently. In order to be
can define a series of effective, a procurement business user needs to be supported by systems that provide real-time
business rules and the information. The system also ensures that procurement processes are effectively managed. In order
value for these attributes to reduce Total Cost of Ownership (TCO), faster time-to-market and increased customer
can automatically be
satisfaction, organizations attempt to get the most value out of their procurement systems.
derived/defaulted while the
document is being created. Oracle Purchasing (part of the Oracle Procurement family) automates the entire purchasing lifecycle
Hence this aids in improving and supports a broad range of purchasing setup framework including defaulting rules, document
productivity as well as
styles and document types, account generation, autocreating purchase orders from requisitions, and
consistency and alignment
more. Thus, users can track and automate their purchasing activities efficiently.
across the organizations.

You can also map your business requirements to the system using the extensive setup framework that
Oracle Purchasing supports for users and implementers.
You can standardize your purchasing processes by using the defaulting rules that Oracle Purchasing
provides. Oracle Purchasing uses integral defaulting rules to enable users to get and use the most
required purchase order information. In order to simplify purchase order creation,users and
implementers can define a series of business rules to automatically default/derive values for the
purchase order attributes. This helps to improve productivity (with shorter data entry cycles),
Attribute defaulting also enables users to attain data and document consistency and alignment across
the organization.
This white paper aims at providing insights into the value derivation used in purchase order, blanket
purchase agreements for selected field values. This white paper enables customers, support, sales and
development to gain an understanding about the defaulting of purchasing document field (attribute)
and how document creation time and effort is minimized.

DERIVING ATTRIBUTE VALUES IN ORACLE PURCHASING

Business users can specify varied sources for the value of the purchase order and agreement fields.
For example, the Communication Method field derives its value first from the Communication
Method field of an agreement. If there is no entered agreement in the order document, then the
Communication Method field value is derived from the supplier site. The system uses a sequence to
derive the value for the field from different sources. These derived values enable users to spend less
time in purchase order or agreement creation. Thus, having derived values that default in purchase
order or agreement attributes results in greater productivity and is less error-prone.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 3

Referring Source document
in purchase orders improves
compliance, eliminates
manual interventions and
simplifies the order creation.
GUIDELINES FOR DEFAULTING IN PURCHASING DOCUMENTS
The purchase order/agreement defaulting framework uses the following best practices (or standards):
1. The term From Source Document in the defaulting rules table refers to a Blanket Purchase
Agreement (BPA) or Contract Purchase Agreement (CPA) or Quotation, as appropriate. Some
definitions are as follows:
a. BPAs are agreements made with suppliers when goods or services are negotiated for a
specified period without indicating exact delivery schedules.
b. CPAs are agreements made with suppliers to agree upon specific terms and conditions
without specifying goods and services.
c. A quotation is sent by suppliers to the purchasing organization with the requested
pricing and other information for item(s) or services.
Later purchase orders are created by referring above documents as a source document to default
the values for some of the attributes. This simplifies the process of creation of a Purchase Order.
2. The following acronyms are used in the defaulting rules table:
BWC Buyer Work Center
PDOI Purchasing Document Open Interface
ASL Approved Supplier List
3. You can create Purchase Orders and Agreements in the following ways in Oracle Purchasing:
Create Purchase Orders/Agreements manually from Buyer Work Center (BWC).
AutoCreate Purchase Orders and Agreements from Requisition (Demand Workbench in
Buyer Work Center).
Import Purchase Orders/Agreements using the Purchasing Document Open Interface
(PDOI).This is used to create Purchase Orders/Agreements in bulk.
Use PO Create Document workflow to create purchase orders automatically from approved
requisition lines. The PO Create Documents workflow performs the same tasks as
AutoCreate does, except that it works without user intervention.
Use Webservices to create purchase orders and agreements.
Use Forms to create purchase orders and agreements.
Although there are different methods to create purchase orders and agreements, the defaulting
rules remain the same, with the exception of some fields. Wherever there is a difference in
behavior or profile introduced for a specific program (BWC, PDOI or AutoCreate), it is
specified in the defaulting rules table.
4. If the defaulting takes place from Preferences Purchasing Defaults in the defaulting rules table,
this defaulting behavior is only applicable to the manual creation of Purchase Orders and
Agreements from Buyer Work Center (BWC) and is not applicable to PDOI, AutoCreate flows.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 4
 Buyer has the authority to 5. The defaulting sequence is in ascending order. Oracle Purchasing looks first for the option
override the defaulted value specified as 1 in the defaulting rule set. If there is no value available in the first rule, the system uses
for the fields during PO
the next rule specified as 2. For example, while defaulting the currency of the purchase order at the
creation.
header level, the value for the currency field is derived in the following sequence:
1. Source Document When a source document is referenced in the purchase order.
2. Supplier Site - When a source document is not referenced, the currency of the purchase
order is derived from the supplier site.
3. Supplier - If no value is provided in the supplier site, the value defaults from the suppliers
default currency and
4. General Ledger If no currency is defined in supplier, the currency defaults from the
General Ledger (which is actually the functional currency).
6. When a purchase order is created with single or multiple requisitions that have different currencies,
the Currency field defaults to the value found in the functional currency field of General Ledger.
Note: Functional currency refers to the main currency used to do business transactions by
organizations.
7. When a purchase order is created referencing multiple requisitions that have source document
references, the source document details are defaulted only if it is same across all the requisition lines
selected. For example, if the supplier is the same and the supplier site is different, the system defaults
only the supplier and the buyer needs to enter supplier site in the purchase order.
8. In PDOI, user defined values (in the interface table) take precedence over all the defaulting rules in
most of the cases.
9. This white paper describes the defaulting values for purchase order/agreement fields when these
documents are created using Buyer Work Center, Purchasing Document Open Interface (PDOI),
and AutoCreate. The defaulting rules described in this white paper do not cover the defaulting
behavior of Forms based purchase order and agreement creation. There are chances that the
defaulting behavior is different in Forms.
10. It is the buyers responsibility to negotiate orders/agreements with suppliers, drive compliance,
track the performance of the suppliers, ensure risks are mitigated, and hedge price variances. In such
situations, the buyer has the authority to override the defaulted value for the field while creating
purchase orders.
11. The term From Referenced Requisition in the defaulting rules table refers to Purchase
Orders/Agreement Created through Autocreate or PDOI having requisition reference.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 5
 LISTS OF ATTRIBUTES THAT HAVE DEFAULT VALUES PURCHASE ORDER
HEADER
Attributes Defaulting Rules

The term From Referenced
Requisition in the defaulting
rules table refers to
Purchase
Orders/Agreements Created
through Autocreate or PDOI
having requisition reference.
Header
Operating Unit
The operating unit that
owns the transaction.
Status
The stage the document
has reached (Draft,
Approved, etc).
1. Multiple Organization Access Control (MOAC) is not enabled, and the
Operating Unit value comes from the profile option MO: Operating Unit. This
Operating Unit field value cannot be updated by users.
2. Multiple Organization Access Control (MOAC) is enabled, and the Operating
Unit value comes from the profile option MO: Default Operating Unit. Users
can overwrite this default value and select an operating unit that they have access
to, as defined in the profile option MO: Security Profile.
Note:
One of the two profiles MO: Operating unit (OR) MO: Security profile has to be
specified.
If both MO: Operating unit and MO: Security profile are specified,
MO: Security profile is considered and MO: Operating unit value is ignored.
BWC:
1. A new purchase order entered in BWC has a status of Incomplete.
PDOI:
Importing as a new Purchase Order:
1. A new purchase order has a status of Incomplete.
2. The value of the Status field is defaulted to Approved for a Consumption
Advice.
Note: Consumption Advice is a document similar to purchase order and is used
for billing consigned material. It is a formal document used to communicate the
quantity and value of the consigned material consumed in a warehouse to the
supplier. Based on the Consumption Advice, the supplier creates the invoice.

Importing to an existing Purchase Order:

The status of the importing document and current document along with the final
status of the current document is as follows. For example, if the status of the
importing document is Incomplete, and the status of the current document is
Approved, the final status of the current document is Requires Reapproval.
Status of the Status of the Final Status of
Importing Current current
Document Document document
Incomplete Incomplete Incomplete
Incomplete Rejected Rejected
Incomplete Approved Requires
Reapproval
Approved Incomplete Incomplete

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 6

Supplier
The provider of goods
and services for whom
the purchase order is
created.
Supplier Site
Suppliers business
location from where
goods or services are
supplied
Supplier Contact
Person responsible for
supplying goods or
services on behalf of the
supplier organization.
Communication Method
The mode by which a
specific communication is
sent or received, that is,
email, phone, fax, or
letter.
Currency
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use
Approved Rejected Rejected
Approved Approved Approved
Initiate Approval Incomplete Approved+
Initiate Approval Rejected Approved+
Initiate Approval Approved Approved+
Note:
+Status Initiate Approval will launch the approval workflow background process.
An approval authorization rule drives the status of the purchase order.
Please note that an importing document with a Rejected status cannot be
imported.
AutoCreate:
1. A newly created purchase order will have a status of Incomplete.
2. The status of the autocreated purchase order remains Rejected or Incomplete
when new lines are added to the existing purchase order.
3. The status of the autocreated purchase order changed to Requires Reapproval
when new lines are added to the existing approved purchase order.
1. From Source Document
2. From referenced requisition.(Not defaulted in PDOI)
Note: When a purchase order is created referencing multiple requisitions that
have source document references, the supplier is defaulted only if it is the same
supplier across all the selected requisition lines.
1. From Source Document
2. From referenced requisition. (Not defaulted in PDOI)
Note: Defaulted only when one and only one valid supplier site for the Supplier
is found.
Note: When a purchase order is created referencing multiple requisitions that
have source document references, the supplier site is defaulted only if it is the
same supplier site for the same supplier across all the selected requisition lines.
1. From referenced requisition.
Note: Defaulted only when one and only one active supplier contact for the
Supplier Site is found.
1. EDI, if EDI is enabled.
2. XML, if XML is enabled.
3. From Supplier Site.
1. From Source Document
Page 7

Buyer
Header Terms
Bill-To Location
A location in the buying
organization where
supplier invoices are sent.
Payment Terms
Pay on Receipt
- This function creates
supplier invoices
automatically based on
receipts and purchase
orders.
Required
Acknowledgment -
Mentions the method of
supplier acceptance of the
order document.
Ship-To Location
- A location where items
are to be shipped to the
buying organization from
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use
2. From Supplier Site
3. From Supplier
4. From General Ledger (Navigation: Purchasing-> Setups-> Organizations
->Accounts Manager-> Accounting Setups)
Note: When a purchase order is created with multiple requisitions that have
different currencies, the value of the Currency field defaults to the functional
currency from General Ledger.
1. The value for the Buyer field is defaulted from the Employee ID of the
current user name (current user is a buyer).
Note: For Purchase Orders created through PDOI, buyer field is not defaulted
however it is a mandatory field Therefore PDOI needs to have buyer field
populated with a valid value.
1. Defaulted from the purchasing document (if updating the existing document )
2. From Source Document* (* Refer below the table)
3. From Supplier Site
4. From Financial Options (Supplier Purchasing details tab)
1. Defaulted from the purchasing document (if updating the existing document)
2. From Source Document* (* Refer below the table)
3. From supplier site
4. From Supplier
5. From Financial System Parameters (Navigation : Payables Responsibilities
>Setup> Options> Payables System Setup).
1. From Supplier Site
Note: The value is set to Yes when Pay On Code in Supplier Site is Receipt,
Use or Receipt and Use, otherwise the value defaults to No.
1. From Purchasing Options (Document Defaults region)
1.Defaulted from the document (if updating the existing document)
2. From Source Document* (* Refer below the table)
3. The value for Ship-To Location specified in the Preferences - Purchasing
Defaults Page will be defaulted in the purchase order document.
4. From Supplier Site
Page 8
the supplier. 5. From Financial Options (Supplier Purchasing details tab)
Ship via 1. Defaulted from the document (if updating the existing document)
2. From Source Document* (* Refer below the table)
- An indication to a
3. From Supplier Site
supplier about the desired
4. From Financial Options (Supplier Purchasing Details tab)
shipping method of
ordered items.

Freight Terms 1. Defaulted from the document (if updating the existing document)
2. From Source Document* (* Refer below the table)
- Negotiated terms
3. From Supplier Site
between a buyer and a
4. From Financial Options (Supplier Purchasing Details tab)
supplier to determine
freight charges on goods
ordered.
FOB 1. Defaulted from the document (if updating the existing document)
2. From Source Document* (* Refer below the table)
- The point or location
3. From Supplier Site
where the ownership title
4. From Financial Options (Supplier Purchasing Details tab)
of goods is transferred
from the supplier to the
buyer.
Transportation Arranger 1. From Source Document* (* Refer below the table)
2. From Supplier Site
Organization that
arranges the
transportation of goods
from supplier.
Email 1. From a supplier contact when profile PO: Communication Email Default is
set to Contact
- Email ID of Supplier
2. From supplier site.
Contact
Fax 1. From Supplier contact when Profile PO: Communication Email Default is set
to Contact
2. From supplier site.
Pcard 1. From the referenced requisition.
Note: Defaulted only if supplier site/supplier matches to the supplier
- Procurement card that is
information of Pcard and document style does not support progress payments.
used as a corporate credit
card to purchase items
directly from a supplier.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 9
 1. Defaulted from the document (if updating the existing document)
Rate Type 2. From referenced requisition (with/without source document reference).
Predefined or user- 3. From Purchasing Options. (Document Defaults region)
defined currency rate.
Rate Date 1. System Date.
- The date on which Rate
is calculated.
Rate 1. From Currency setup (derived from Rate Type and Rate Date).

* Attributes will be defualted from source document only when source document is
same across all the lines
LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER LINE
Attributes Defaulting Rules

Lines
Line Type 1. Defaults from the referenced requisition.
Defaulting that occurs from 2. If the Document Style has only one line type, the same line type will be
- Determines whether a
Preferences- Purchasing
defaulted.
Defaults is applicable to purchasing document line
3. The Line Type in the Preferences - Purchasing Defaults is defaulted in the
manual creation of Orders / is for goods, services, or
order document provided the selected line type is enabled for the document
Agreements from Buyer any other type that you
style.
Work Center. It is not
define.
applicable to PDOI and 4. Defaults from Purchasing Options - Document Defaults region, provided the
AutoCreate selected line type is enabled for the document style.
.
Note: The profile option PO: Default Line Type takes precedence over all of the
above. This profile option is available in Forms only. It is not used in Oracle
Applications Framework pages.
Item 1. From the referenced requisition

Item Rev 1. From the referenced requisition

Job 1. From the referenced requisition

Item Description 1. From the referenced requisition

2.From Item
3. From Job ID
Supplier Item 1. From the referenced requisition
2. From Approved Supplier List
It is the item number
created by the supplier
organization.
Category
1. From the referenced requisition
Used to group items

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 10
with similar 2. The value for Category specified in the Preferences - Purchasing Defaults
characteristics. page is defaulted in the order document.
3. The value for category specified in the line type will be defaulted. It will
overwrite the defaulted category from Preferences - Purchasing Defaults
4. If Category is derived from Item/Job then the same should overwrite the
value defaulted from the Preferences - Purchasing Defaults Page or Line Type.
5. From iProcurement Catalog Administrator (Navigation : iProcurement Catalog
Administration ->Schema->Category Mapping)
6. From Items Default Category Sets
(Purchasing->Setups->Items->Categories->Category Sets)
UOM 1.From Source Document
2.From the referenced requisition
- The unit in which the
3.From Item
quantity of an item is
4. From Line Type
expressed.
Price 1.From Source Document
2.From Oracle Advanced Pricing
3.From referenced requisition
4. From Item
5. From Line Type
1. From the referenced requisition
Transaction Reason
2. The value for Transaction Reason specified in the Preferences - Purchasing
The standard means to Defaults page is defaulted in the order document. Values defined in Transaction
classify or explain the Reason window in Inventory (Setup > Transactions > Reasons) are fetched and
reason for the displayed in the LOV.
transaction.

Negotiated 1.From Source Document Set to Yes

2.From Oracle Advanced Pricing Set to Yes
Used to indicate that the
3.From RFQ & Quote Set to Yes
purchase price is
4.From referenced requisition without source document reference; Order
negotiated.
without requisition reference Set to No
Lines Source Document (BPA, CPA)
Document Number 1.From referenced requisition
(Not derived in PDOI)
- Agreement Number
2. Approved Supplier List (ASL), if it is not consigned.
(Blanket or Contract)
Note: Eligible source document number will be defaulted to purchase order
referred in the order
document, if profile option PO: Automatic Document Sourcing to Yes
document.
Line Number 1. From referenced requisition.
(Not derived in PDOI)
- Line Number of the
2. Approved Supplier List (ASL), if it is not consigned.
Source Document (BPA
Note: Line Number is defaulted only when Document Number (BPA or CPA)
or CPA) referred in the
exists.
order document.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 11
Lines Contract
Note: This region is defaulted only if Oracle Project Contracts is installed. Oracle Project Contracts supports
the contract management needs of project driven organizations, including commercial and government
contractors, agencies, and subcontractors. The procurement products can be integrated with Oracle Project
Contracts. You can enter project contract information in this region. If you are using Oracle Project Contracts
you can enter the project Contract number and version
Contract Number 1. Contract Number defaults from the referenced requisition.
2. The value for Contract Number specified in the Preferences - Purchasing
- This is Project Contract
Defaults page is defaulted for the order lines, provided the item is not a
Number
consigned item.
Note: Consigned item is similar to regular item, except that there is no
accounting event that might increase financial liability. When receiving consigned
material, you never match a payables invoice to a consigned receipt.
3. The Contract Number is set to Blank if the item is a consigned item even if
there is a value set for Contract Number in the Preferences - Purchasing Defaults
Page.

1. The value for Contract Version defaults from the referenced requisition.
Contract Version 2. The value for Contract Version specified in the Preferences - Purchasing
Defaults page is defaulted for the order lines, provided the item is not a
consigned item.
3. The Contract Version is set to blank if the item is a consigned item, even if
there is a value set for Contract Version in the Preferences - Purchasing Defaults
page.
Note: Contract Version will be defaulted only when Contract Number exists.
Lines Contractor Defaults

1. The value for Start Date specified in the Preferences - Purchasing Defaults
Start Date page is defaulted if the Line Type is selected as Rate Based Temp Labor or Fixed
Price Temp Labor for the order document.
1. The value for End Date specified in the Preferences - Purchasing Defaults is
End Date defaulted if the Line Type is selected as Rate Based Temp Labor or Fixed Price
Temp Labor for the order document.
Lines Item Attributes
Retainage Rate 1. From Supplier Site
This rate determines
the percentage of the
amount requested that is
withheld before releasing
payments to the supplier.
Secondary Quantity 1. From Item
The quantity to transact

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 12
in the secondary unit of
measure if the item is Note: This attribute is used if Oracle Process Manufacturing (OPM) has been
under dual unit of implemented. Depending on the selected dual UOM indicator, the Secondary
measure control. Quantity is calculated.
Secondary UOM 1. From Item
Note: If Oracle Process Manufacturing (OPM) has been implemented and item
- Used when the item is
is dual UOM controlled, then the Secondary UOM defaults to the value specified
dual UOM controlled.
in the Inventory Item Master.
Grade 1. From referenced requisition if grade control for the item is not No
- It represents the
requested quality control
grade for the selected
item.
1. The value for Price Type specified in the Preferences - Purchasing Defaults
Price Type page is defaulted in the order document.
2. From Purchasing Options (Document Defaults Region)
List Price 1. Unit Price of item
2. From Item
- This is the original
3. Defaulted to 1 for Amount based lines.
inventory item price and
4. Defaulted as Blank for Fixed Price Temp labor and Rate based temp labor
therefore should be used
lines.
as a indicative price.
5. Otherwise defaulted to 1
Market Price 1. From Item
2. Blank for onetime items.
- The market price that
comes from the Item
Master.
Hazard Class 1. From the referenced requisition
2. From Item
- To identify categories of
3. From UN Number (Navigation: Setups-> Purchasing->UN Number)
hazardous materials for
international trade
purposes.
UN Number 1. From the referenced requisition
2. From Item
- An identifier for
hazardous material
Type_1099 1.From Supplier

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 13
LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER
SCHEDULE
Attributes
Schedules- Shipping
Ship-To Organization
Ship-To Location
- A location where items
are to be shipped.
Need-By Date
- The date by which the
goods or services are
required.
Promised Date
- The date by which the
supplier is committed to
supply goods or services.
Schedules- Billing
Invoice Close Tolerance
- The percentage
tolerance used to
automatically close a
shipment when
uninvoiced quantity is
within the quantity
tolerance percentage of
the shipment.
Match Approval Level
- This function
determines whether the
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use
Defaulting Rules
1. Defaults from destination organization of the requisition.
2. If any organization is associated to ship to location.
3. The value for Ship-To Organization specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
4. From Financial Options (Navigation: Financial Options>Supplier>Purchasing
Details>Inventory organization.)
5. The Ship-To Organization is set to Blank if the item is a consigned item
1. Ship-To Location defaults from the deliver to location of requisition.
2. The value for Ship-To Location specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
3. From Supplier Site
4. From Financial Options (Navigation: Financial Options>Supplier>Purchasing
Details>Inventory organization.)
1. From referenced requisition.
2. The Need-By Date value specified in the Preferences - Purchasing Defaults
page is defaulted in the order document.
1. The Promised Date value specified in the Preferences - Purchasing Defaults
page is defaulted in the order document.
2. The value of the Need-By date is defaulted if the profile option
PO_Need_By_Promise_Defaulting is set to Yes. This profile option is applicable
only during autocreating the purchase order.
1. With consigned items, the Invoice Close Tolerance value is set to 100%
because the consigned shipment is not invoiced.
2. The value for Invoice Close Tolerance specified in the Preferences -
Purchasing Defaults Page is defaulted in the order document.
3. The value for Match Approval Level is defaulted from Item Master
Organization ( Ship To Organization)
4. The value for Match Approval Level is defaulted from the Item Validation
Organization.
5. From Purchasing Options (Document Defaults region)
6. Invoice close tolerances will be set to Blank for RFQ, P-Card referenced lines.
1. With consigned items, the Match Approval Level value is two-way matching,
because the consigned shipment is not invoiced.
2. Complex Purchase orders with advances: the Match Approval Level value for
the Advance shipment is two-way matching
Page 14
items on a purchase order 3. The value for Match Approval Level specified in the Preferences - Purchasing
must be received and/or Defaults Page is defaulted in the order document.
inspected before the 4. The value for Match Approval Level is defaulted from Item Master
corresponding invoice Organization ( Ship To Organization)
can be paid. 5. The value for Match Approval Level is defaulted from the Item Validation
Organization.
6.From Supplier
7. From Purchasing Options (Document Defaults region)
Invoice Match Option 1. For Consigned items and financing pay items, the match option is defaulted to
- Invoice Match Option is the value PO.
used by Payables to know 2. For Oracle Landed Cost Management enabled shipments, the Match option
the invoice should be defaults to the value Receipt.
matched with purchase 3. The value for Invoice Match Option specified in the Preferences - Purchasing
order or receipt. Defaults Page is defaulted in the order document.
4. From supplier site
5. From Supplier
6. From Payables System setup (Navigation: Payables Super User-> Setup->
Options-> Payables System Setup: Control -> Invoice Match Option)
Accrue On Receipt 1 The Accrue on Receipt field defaults to No if the value for P-Card is entered.
2. If Transaction flow is defined in Oracle Inventory for the item and Operating
- This option is used to
Unit, then the value is defaulted to Yes.
indicate when the
Note: The transaction flow specifies the operating units and inventory
accounting entries need
organizations involved in the financial transactions when goods move from a
to be sent to the GL
source operating unit to a destination operating unit.
interface.
3. If a consigned item is entered, the value No is defaulted in the Accrue on
Receipt field.
4. If distribution type is Prepayment, the value No is defaulted in the Accrue on
Receipt field.
5. If the Line Type is enabled with Outside Side Processing, then the value Yes is
defaulted in the Accrue on Receipt field.
6. If the item is a Stockable Inventory item, the value Yes is defaulted.
7. In Purchasing Options, if the Expense Accrual Code is set to:
a) Period End, then the value of the Accrue on Receipt field is set to No
b) Receipt, the value of the Accrue on Receipt field is set to Yes.
Schedules- Receiving Controls
Enforce Ship-To 1. From Item.
2. From Supplier.
- This option controls
3. From Receiving Options.
whether the supplier can
4. For fixed price services/temp labor lines, Enforce Ship-To is defaulted to
deliver to a location that
Blank.
differs from the Ship-To
location defined in the
purchase order.
Allow Substitute 1. From Item.
2. From Supplier.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 15
Receipts
- This option indicates
whether to allow receipt
of defined substitutes in
place of this item.
Receipt Routing
- A method of
simplifying transaction
entry by specifying
routing steps for
receipts.
Receipt Close Tolerance
- Purchasing
automatically closes a
shipment for receiving if
it is within the receiving
closing tolerance at the
receiving close point.
Over Receipt Tolerance
- This field determines
how Purchasing handles
receipts that exceed the
quantity received
tolerance.
Receipt Days Early
- The number of days
mentioned allows you to
receive the goods before
the promise date or need
by date without warning
or rejection.
Receipt Days Late
- The number of days
mentioned allows you to
receive the goods after
the Promised Date or
Need-By Date without
warning or rejection.
Receipt Date Action
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use
3. From Receiving Options.
4. For fixed price services or rate based temp labor lines, Allow Substitute
Receipts is defaulted to Blank.
1. When the Line Type is selected as Fixed Price Services/ Fixed Price Temp
Labor/ Rate Based Temp Labor, the receipt routing will be defaulted to Direct
Delivery.
2. The value for Receipt Routing specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
3. From Item.
4. From Supplier.
5. From Receiving Options.
1. The value for Receipt Close Tolerance specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
2. From Item.
3. From Line Type.
4. From Receiving Options5. Defaulted with 0 (zero) %.
1. The value for Over Receipt Tolerance specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
2. From Item.
3. From Supplier.
4. From Receiving Options.
5. Defaulted with 0 (zero) %.
1. The value for Receipt Days Early specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
2. From Item.
3. From Supplier.
4. From Receiving Options.
1. The value for Receipt Days Late specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
2. From Item.
3. From Supplier.
4. From Receiving Options.
1. From Item
Page 16
- Determines how
Purchasing handles
receipts that are earlier
or later than the allowed
number of days
Over Receipt Action
- Determines how
Purchasing handles
receipts that exceed the
quantity received
tolerance.
Schedules
Secondary UOM
UOM
Shipment Number
Consigned Flag
- Used to mention if the
item is consigned or not.
VMI Flag
- Used to mention if the
item is Vendor Managed
Inventory or not.
Country of Origin
- Used to capture and
update an item's Country
of Origin on the receipt.
Receipt Required Flag
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use
2. From Supplier
3. From Receiving Options
1. From Item
2. From Supplier
3. From Receiving Options
1.From Source Document
2. From Item
1. From Source Document
2. From referenced requisition
3. From Item
4. From Line Type
1. If Payment Type is Advance, Shipment Number is defaulted with a value of 0.
2. If Payment Type is Delivery, Shipment Number is defaulted with a value of 1.
3. Next number in the sequence.
1. From referenced requisition.
2.From Approved Supplier List (ASL)
1. From referenced requisition.
2. From Approved Supplier List (ASL)
1. From Approved Supplier List (ASL)
2. From Supplier Site
1. For consigned item and advance shipments, Receipt Required Flag is defaulted
to a value of No.
2. Defaulted from Item Master Organization (Ship-To Organization).
3. Defaulted from Item Validation Organization.
4. From Supplier.
5. From Line Type.
6.From Purchasing Options
Page 17
Inspection Required Flag 1. For consigned item, pay item, fixed price, rate based temp labor line types and
Advance Shipments, Inspection Required Flag is defaulted to No.
2. Defaulted from Item Master Organization (Ship-To Organization).
3. Defaulted from Item Validation Organization.
4. From Supplier.
5.From Purchasing Options
Transaction Flow 1.Defaulted from Inventory Transaction Flow (Inventory responsibility > Setup
>Organization > Intercompany Transaction flows)
- Specifies the operating
units and inventory
organizations involved in
the financial transactions
when goods move from a
source operating unit to a
destination operating
unit.
Grade 1. Defaulted from referencing requisition if Grade Control for the item is not 'N'.

Secondary Quantity 1. From Item.

LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER PAY ITEM
Attributes Defaulting Rules

Schedules- Pay Item

Type 1. If Value Basis is Quantity, the Type is defaulted to Milestone.

2. If Value Basis is Fixed Price, the Type is defaulted to Lumpsum.
- Pay Item Type specifies
the way progress needs to
be measured and payment
is to be made.
Description 1. For Advance Shipment, Description is defaulted to Advance &LINE_DESC.
For example Description will be Advance Boiler Installation Services.
2. For rest of pay items, description is same as line description.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 18
LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER
DISTRIBUTION
Attributes
Distribution
Destination Type
- Determines the final
destination of the
purchased items.
Subinventory
- Subdivision of an
organization which are
unique physical or logical
grouping of items
Work Order
Operation Reference
Distribution Delivery
Requester
Deliver To Location
- A location where you
deliver goods previously
received from a supplier
to individual requestors.
Requisition
Requisition Line
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use
Defaulting Rules
1. From referenced requisition.
2. If the Item is blank or for Complex PO, Destination Type is defaulted to
Expense.
3. For consigned item /outsourced assembly, Destination Type is defaulted to
Inventory.
4. If there is an Outside Processing item, Destination Type is defaulted to Shop
Floor.
5. If the item is Stockable and Accrue on Receipt is set to No, Destination Type
is defaulted to Expense.
6. If the item is Stockable, and Accrue on Receipt is set to Yes, Destination Type
is defaulted to Inventory.
7. If the item is Non Stockable, Destination Type is defaulted to Expense.
1. From referenced requisition.
2. The value for Subinventory specified in the Preferences - Purchasing Defaults
Page is defaulted in the order document.
1. From referenced requisition.
1. From referenced requisition.
1. The value for Requester specified in the Preferences Purchasing Defaults
Page is defaulted in the order document.
2. From referenced requisition.
1. From referenced requisition
2. The value for Deliver-To Location specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
3. Defaulting Deliver-To Location based on Requester, Ship-To Organization
and Business Group.
1. From referenced requisition.
2. The value for Requisition Number specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
1. From referenced requisition
2. The value for Requisition Line specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
Page 19

Distribution Billing
GL Date
- The date used to
determine the correct
accounting period for
your invoice and payment
transactions.
PO Charge Account
- The account to charge
for the cost of the
goods/services in the
purchasing operating unit
PO Accrual Account
- The AP accrual account
in the purchasing
operating unit.
PO Variance Account
- The invoice price
variance account in the
purchasing operating unit.
Budget Account
Destination Charge
Account
Destination Variance
Account
Distribution
Recovery Rate
- The recovery rate is the
percentage of tax that
your business can reclaim
for credit.
Rate Type
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use
Note: Requisition Line will be defaulted only if Requisition is defaulted.
1. If the profile option PO_Autocreate_Date is set to Yes, then the GL Date is
defaulted to the requisition date. 2. The value for GL Date specified in the
Preferences - Purchasing Defaults page is defaulted in the order document. You
can override the Preferences - Purchasing Defaults page values only if the GL
Date is in a closed period.
3. If the profile option PO: Validate GL Period has been set to Redefault, then
the GL Date is defaulted to System Date.
1. From referenced requisition.
2. From the Account Generator. For more details about Account Generator See:
Oracle Purchasing Users Guide.
3. The value for PO Charge Account specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
1. From referenced requisition.
2. From the Account Generator.
Note: In PDOI, the user defined accrual account can be overridden by the
Account Generator based on the PO charge account.
1. From referenced requisition.
2. From the Account Generator.
Note: In PDOI, the user defined variance account can be overridden by the
Account Generator based on the PO charge account.
1. From referenced requisition.
2. From the Account Generator.
Note: In PDOI, the user defined budget account can be overridden by the
account generator based on the PO charge account.
1. From the Account Generator.(Only in case of shared procurement)
1. From the Account Generator. (Only in case of shared procurement)
1. Defaulted from referenced requisition if Tax Recovery Override flag is Yes.
Note: Not available in R12
1. From Header.
Page 20
Rate Date 1. From Header.

Rate 1. From Header.

Unit Number 1. From referenced requisition.

- The Unit Number
displays if you are using
the Oracle Project
Manufacturing feature
End item model/unit
number.
Destination Organization 1. Defaulted with Ship-To Organization on shipment.
- An organization that
receives goods/services
from a given
organization.
GL Encumbered Period 1.Based on GL Date
- The period in which
encumbrance for the
purchasing document
takes place.
Distribution- Contracts

Contract Line Number 1. Defaulted from referenced requisition, if consigned flag is No

- The number which is
defined in Project
contracts lines
Deliverable Number 1. Defaulted from referenced requisition, if consigned flag is No
- The number which is
defined in Project
contracts deliverable.
Distribution Work Order Details (Defaulted only when Destination Type is Shop Floor)

WIP Job 1. From referenced requisition.

- A production order for
the manufacture of a
specific quantity of
goods, using specific
materials and resources.
WIP Production Line 1. From referenced requisition.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 21
- The physical location
where you manufacture a
repetitive assembly
usually associated with a
routing.
WIP Operation Sequence 1. From referenced requisition.
Number
- The number that
indicates the order of
operation in a routing.
WIP Resource Sequence 1. From referenced requisition.
Number
- The number that
indicates the order of a
resource in an operation.
Distribution Projects
Note: This region will be defaulted only if any of the following products is installed : Oracle Projects, Oracle
Project Manufacturing, Oracle Grants and Oracle Project Contracts
1. From the referenced requisition.
Project - The unique 2. The value for Project specified in the Preferences - Purchasing Defaults page is
number assigned to defaulted in the order document.
project work.

Task - A subdivision of 1. From the referenced requisition.

project work
Award - Represents the
source of funding for a
project or a task.
2. The value for Task specified in the Preferences - Purchasing Defaults page is
defaulted in the order document.
Note: Task is defaulted only if a Project is defaulted.
1. From the referenced requisition.
2. The value for Award specified in the Preferences - Purchasing Defaults page is
defaulted in the order document. This field will be defaulted only if Grants
product is installed, a Project and task are defaulted.

Distribution Expenditure (Expenditure details can be defaulted only when Project details are given and
Destination Type should be Expense)
1. From the referenced requisition.
Expenditure Type 2. The value for Expenditure Type specified in the Preferences - Purchasing
- A classification of cost Defaults is defaulted in the order document.
assigned to each
expenditure item.
Expenditure 1. From the referenced requisition.
Organization 2. The value for Expenditure Organization specified in the Preferences -

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 22
 Purchasing Defaults page is defaulted in the order document.
3. Based on the profile option PO: Expenditure Organization.
Expenditure Item Date 1. From referenced requisition.
2. The value for Expenditure Date specified in the Preferences - Purchasing
- The date on which work
Defaults page is defaulted in the order document.
is performed and is
charged to a project and
task.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 23
LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES BLANKET PURCHASE
AGREEMENT LINE
Attributes Defaulting Rules

Lines

Expiration Date 1. From referenced requisition Assignment End Date.

2. From Price Modifier.
- The period in which
encumbrance for the
purchasing document
takes place.
Minimum Release 1. From Purchasing Options (Document Defaults Region).
Amount
- The minimum Amount
that can be released
against the purchase
order.
Shopping Category 1. From referenced requisition.
2. From iProcurement Catalog Administrator (Schema>Category
- The term to group items
Mapping>Shopping Category).
with similar
characteristics.
Price Type 1. The value for Price Type specified in the Preferences - Purchasing Defaults
page will be defaulted in the order document.
2. From Oracle Sourcing.
Allow Price Override 1. Yes for Fixed price services and fixed price temp labor line type.
2. No for Goods, Rate Based Temp Labor and other line types.
- This flag is to indicate
that the price can
be overridden on the PO.
Price Break Type 1. From Oracle Sourcing-quotation.
(Cumulative or Non 2. From Purchasing Options (Document Defaults region).
Cumulative)
Lines Price Break
Organization 1.From Header Ship-To Organization
2.From Oracle Sourcing
Location 1.From Header Ship-To Location
2. From Oracle Sourcing
Quantity 1. From Oracle Sourcing
Break Price 1. Defaulted from Unit Price

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 24
Discount 1. From Oracle Sourcing

Effective From 1. From Oracle Sourcing

Effective To 1. From Oracle Sourcing
Lines Item Attributes
Long Description 1. From Item.
Supplier Auxiliary ID 1. From Item Catalog.

Supplier URL 1. From Item Catalog.

Manufacturer 1. From Item Catalog.

Manufacturer URL 1. From Item Catalog.

Manufacturer Item 1. From Item Catalog.

Attachment URL 1. From Item Catalog.

Alias 1. From Item Catalog.

Lead Time 1. From Item Catalog.

UNSPSC Code 1. From Item Catalog.

Image 1. From Item Catalog.

Thumbnail Image 1. From Item Catalog.

Availability 1. From Item Catalog.

Comments 1. From Item Catalog.

UN Number 1. From Oracle Sourcing - defaulted from item.

2. Defaulted from referenced requisition.
Hazard Class 1. From Oracle Sourcing - defaulted from item.
2. Defaulted from referenced requisition.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 25
LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES BLANKET PURCHASE
AGREEMENT CONTROL
Attributes Defaulting Rules

Controls

Requesting OU 1. Defaulted from Operating Unit of the referenced requisition.

2. Defaulted from Owning Organization.
Purchasing OU 1. Defaulted from Purchasing Operating Unit.
2. Defaulted from Owning Organization.
Purchasing Site 1. From Supplier Site.

Enabled (OU Access) 1. For owning Organization defaulted to Yes.

Effective From 1. From Oracle Sourcing

Effective To 1. From Oracle Sourcing

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 26
CONCLUSION
This white paper enables users understand how the system works through the derivation sequence
and defaults the values for the relevant fields. Defaulting Rules enable users to reduce data entry
time and effort. Additionally, users can be assured of more accurate data in their purchasing
documents. Defaulting Rules in Oracle Purchasing thus improves document creation cycles and
processes. This in turn increases compliance and manages risk by eliminating manual intervention.
The buying organization has the advantage of improved efficiency and enhanced productivity.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 27
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use
April 2014
Author: Manavalan Ethirajan
Contributing Authors: Vijayaganesh Sampathkumar, Abhimanyu Ganguly,Supriya Bontala, Indu Nagdeo, Sridurga Pantham, Pratima Mahtani

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