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100 PURCHASING APPLICATION SETUP

ORAERP INC. Oracle Purchasing

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Creation Date : 19th June 2013
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349834792.doc
Company Confidential - For internal use only

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19 th
June 2009 Vijaya Simha P 1.0 No Previous Document

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File Ref: 349834792.doc Company Confidential - For internal use only

.......................22 File Ref: 349834792................................................... 8 Define Approval Groups...............................11 Fill Employee Hierarchy..........................................................................7 Define Buyers....................................... Contents Document Control.....................................doc Company Confidential ........14 Define Document Types......................................................................................................5 Open Purchase Accounting Periods..................................ii Scope of Setup Document – Purchasing................................................................................................................................................................................................For internal use only .................................................................................................................12 Define Purchasing Lookups...........................................13 Define Inspection Codes............................19 Define Receiving Options................................................21 Define Financial Options..............9 Assign Approval Groups to Positions..15 Define Purchasing Options.........................................................6 Define Position Hierarchies.................................................................................................................................

......For internal use only .... Open and Closed Issues for this Deliverable................24 File Ref: 349834792.......doc Company Confidential ...............

doc Company Confidential .Scope of Setup Document – Purchasing Where relevant.For internal use only . the document also provides an overview of the significance of the set-up step that is being performed. File Ref: 349834792.

Navigation: Purchasing Responsibility > Setup> Financials > Accounting> Control Purchasing Periods Status Num Fiscal Year Period From Date To Date Never Opened 7 2013 Jul-13 01-Jul-2013 31-Jul-2013 Open 6 2013 Jun-13 01-Jun-2013 30-Jun-2013 Note: Inventory accounting periods should also be opened before receiving of goods.doc Company Confidential . Use “Control Purchasing Periods” form to open or close Periods in Oracle Purchasing application . Oracle Purchasing application create journal entries only for transactions entered in an open Purchasing period. Also purchasing periods needs to be opened to create correct Receipt Accrual journal entries in the General Ledger. only if the Accrual Option is perpetual. File Ref: 349834792. to enter PO Receipts.For internal use only .Open Purchase Accounting Periods Open accounting periods to record purchasing activity.

doc Company Confidential .Define Position Hierarchies Use of define Position Hierarchy form to create position hierarchies in the organization for Purchase documents. Oracle Purchasing application uses these position hierarchies to determine approval and forwarding paths for the documents along with the document access controls assigned with various positions.For internal use only . Navigation: Purchasing Responsibility >Setup>Personnel>Position Hierarchy Name Primary Version Number Date From Date To XX_PO_HIERARCHY No 1 01-JUL-2009 - File Ref: 349834792.

one does not need to be a buyer.Define Buyers Only those Employees defined as Buyers. These activities will be carried out by Purchasing System Administrator / Super User. 22-JUN-2011 - Mohammed . Approval Groups and Rules have to be defined and assigned to new buyers as per the company’s authority manual. RFQs and Quotations in the system.For internal use only . 25-SEP-2011 - Ali . 02-APR-2013 - After defining new buyers 1. Please note for making requisitions. . Run “Fill Employee Hierarchy” report. Navigation: Purchasing Responsibility >Setup>Personnel>Buyers Buyer Category Ship-To Effective Effective From: To: Sabbagh Amjad . . File Ref: 349834792.doc Company Confidential . Ensure that they have been included into the purchasing approval hierarchy 2. can create Purchase Orders and Releases. 3. .

0000. In HAAD. category range and item range. 04.00 2000000. Navigation: Purchasing Responsibility >Setup>Approvals> Approval Groups Name XX Procurement Head - Enabled Yes - XX Section Head Procurement Description - Approval Group for PO Approval Object Document Total Account Range Type Include Include Amount Limit 2000000. purchase orders and releases.99999.000. Document control rules are used to set approval limits for various positions (and thereby employees) for requisitions.Define Approval Groups Define document control rules for approval groups for the organisation.zzzzz.zzzzzzz. Approval controls can be defined based on document total. location. Separate control groups have been defined for Requisitions and Purchase Orders which are further divided by the Positions to which these rules apply.000 Approval Group - Enabled Yes - File Ref: 349834792. the approval groups are defined based on the Document Total and Account Range.doc Company Confidential . account range. 04.0000 High Value .0000000.zzzzz.000000.zzzzz Inactive Date - Name Upto AED 50.For internal use only .zzz. item.00 Low Value .

00 Limit Low Value .zzzzz.zzzzzzz.zzz.0000.0000 High Value .000 Approval Group - Object Document Total Account Range Type Include Include Amount 50000.000 Approval Group - Enabled Yes - Description Upto AED 50.zzzzz Inactive .zzzzz.For internal use only . - Date Inactive .zzzzz.0000.000000.00 9999999999.zzzzz. 04.000 Approval Group - Object Document Total Account Range Type Include Include Amount 50000.doc Company Confidential .0000.zzzzz.00 Limit Low Value .0000. 04.zzzzzzz. 00.zzzzz.zzz.00 50000.000000. - Date Name Upto AED 50.zzzzz File Ref: 349834792.0000.0000 High Value .0000. 00.Description Upto AED 50.

- Date Inactive . - Date File Ref: 349834792.Inactive .For internal use only .doc Company Confidential .

Bud inance.Supply Supply Head 2008 Chain-Procurement.3001. Officer 01-JAN.Supply Supply Orders Head 2008 Chain-Procurement. approval groups need to be defined & assigned by the system administrator.3001.Supply Supply Agreements Head 2008 Chain-Procurement. Chain. - Accountant.Senior SCPSPS(Sec) Purchasing Officer Assistant Budget Administration.3002.Assistant SCPSPS(Sec) Purchasing Officer Senior Purchasing Administration.Supply Supply Procurement 2008 Chain-Procurement. Employees who are assigned to these positions acquire the authorization abilities assigned to these positions. Chain.For internal use only . Chain. - Officer. Budget FNBCGA(Sec) Accountant Assistant Purchasing Administration.F XX Group Approve Purchase Order XX Section Head 01-JAN. - Officer. XX Group Approve Blanket Purchase XX Procurement 01-JAN. Chain. XX Group Approve Purchase Order XX Procurement 01-JAN. This will be required only if the new position will be part of the approval hierarchy & needs to take the approval action on any purchase document.Senior SCPSPS(Sec) Purchasing Officer Senior Purchasing Administration. Navigation: Purchasing Responsibility >Setup>Approvals>Approval Assignments Effectiv Effect Position Job Organization Document Type Approval Group e Date ive To from Date Senior Purchasing Administration.Assistant Procurement 2008 get & Cash-GA.Assign Approval Groups to Positions For each position in the organisation authorized to approve purchasing documents. - Officer. which will be created in the future & assigned to the employee. specific control group needs to be assigned to individual document types. - Officer. XX Group Approve Standard Purchase XX Procurement 01-JAN.Senior File Ref: 349834792.doc Company Confidential .3002.3002. For any new position. XX Group Approve Purchase Order XX Sr.

Chain.Senior SCPSPS(Sec) Purchasing Officer File Ref: 349834792.3002. - Officer. Effectiv Effect Position Job Organization Document Type Approval Group e Date ive To from Date SCPSPS(Sec) Purchasing Officer Senior Purchasing Administration.Supply Supply Head 2008 Chain-Procurement.doc Company Confidential .For internal use only . XX Group Approve Blanket Releases XX Procurement 01-JAN.

Any change to the Hierarchy is ineffective until and unless this report is not run. If this report is not run then the System is unable to route the Documents through the Approval Hierarchy as it fails to recognize the various positions included/deleted from the Hierarchy Report Name Remarks Fill Employee Hierarchy Run this report to compile the Position Approval Hierarchy. Run the Fill Employee Report.Fill Employee Hierarchy Navigation: Purchasing Responsibility>Reports>Run> Fill Employee Hierarchy Description: Linking Employee to Position. Organization and Location Note: On Adding or Deleting any Position from any of the Approval Hierarchies.doc Company Confidential .For internal use only . File Ref: 349834792. Job. This report compiles the Position Approval Hierarchy and ensures that all the Documents are routed through the relevant positions.

Yes SCHEDULE UNACCEPTA Unacceptabl Unacceptable Purchase Order BLE . Yes TERMS Terms 28-AUG- OPEN Open Open . . Yes are present 2002 CHANGES changes ACCEPTED Accepted All Accepted All Purchase Order Terms . and the allowable values for the lookup type are called lookup codes.For internal use only . Yes e Changes Changes CHANGES File Ref: 349834792. . A lookup category is called a lookup type. changes 28-AUG- WITH with . . . . .Define Purchasing Lookups Navigation: Purchasing Responsibility >Setup>Purchasing>Lookup Codes Purchasing uses lookup codes to define lists of values throughout the system. Yes 2002 ON On Schedule Purchase Order On Schedule . Effective Effective Code Meaning Description Tag Dates Enabled Dates To From ACCEPT Accepted Accepted Purchase Order. Extensible & System) one can add their own codes to those initially provided . Depending upon the Access Level (User.doc Company Confidential . . .

but acceptable - 50 Unacceptable Below Quality Standards. Ranking Quality Code Description Inactive Date 10 Excellent Substantially Exceeds Quality Standard - 20 Above Average Exceeds Quality Standard - 30 Average Meets Quality Standards - 40 Below Average Below Quality Standards.Define Inspection Codes Navigation: Purchasing Responsibility >Setup>Purchasing>Quality Inspection Codes Inspection codes are used to record the quality of the received goods.For internal use only . not acceptable 60 Reject and Notify Serious Quality Problems. Contact Supplier File Ref: 349834792.doc Company Confidential .

Document – Blanket Purchase Agreement Type Name Document Type layout Contract Terms Layout Blanket Purchase Purchase Agreement Blanket Blanket Agreement Stylesheet Oracle Contract Terms Template Agreement Attributes – Blanket Purchase Agreement Owner Can Approve yes Security Level Hierarchy Approver Can Modify Yes Access Level View Only Can Change Forward – To No Forward Method Direct Can Change Approval No Archive On Approve Hierarchy Approval Workflow PO Approval Default Hierarchy XX_PO_HIERARCHY Workflow Startup Process PO Approval Top Process File Ref: 349834792.For internal use only .doc Company Confidential .Define Document Types Navigation: Purchasing Responsibility >Setup>Purchasing>Document Types Document Types are used to define the controls & data forwarding methods for each type of purchasing documents.

Document – Contract Purchase Agreement Type Name Document Type layout Contract Terms Layout Contract Purchase Purchase Agreement Contract Contract Agreement Stylesheet Oracle Contract Terms Template Agreement Attributes – Contract Purchase Agreement Owner Can Approve Yes Security Level Public Approver Can Modify Yes Access Level Full Can Change Forward – To No Forward Method Hierarchy Can Change Approval No Archive On Approve Hierarchy Approval Workflow PO Approval Default Hierarchy Workflow Startup Process PO Approval Top Process Document – Planned Purchase Order Type Name Document Type layout Contract Terms Layout Planned Purchase Purchase Order Planned .For internal use only .doc Company Confidential . - Order Attributes – Planned Purchase Order Owner Can Approve Yes Security Level Public Approver Can Modify Yes Access Level Full Can Change Forward – To No Forward Method Hierarchy Can Change Approval No Archive On Approve Hierarchy Approval Workflow PO Approval Default Hierarchy - Workflow Start Process PO Approval Top Process File Ref: 349834792.

Document – Standard Purchase Order Type Name Document Type layout Contract Terms Layout Standard Purchase Purchase Order Standard Standard Purchase Order Stylesheet Oracle Contract Terms Template Order Attributes .For internal use only .Standard Purchase Order Owner Can Approve Yes Security Level Public Approver Can Modify Yes Access Level View Only Can Change Forward – To No Forward Method Hierarchy Can Change Approval Yes Archive On Approve Hierarchy Approval Workflow PO Approval Default Hierarchy XX_PO_HIERARCHY Workflow Startup Process PO Approval Top Process Document – Blanket Release Type Name Document Type layout Contract Terms Layout Release Blanket Blanket Release Blanket Release Stylesheet Attributes – Blanket Release Owner Can Approve Yes Security Level Hierarchy Approver Can Modify Yes Access Level View Only Can Change Forward – To No Forward Method Direct Can Change Approval No Archive On Approve Hierarchy Approval Workflow PO Approval Default Hierarchy XX_PO_HIERARCHY Workflow Startup Process PO Approval Top Process File Ref: 349834792.doc Company Confidential .

- Attributes – Purchase Requisition Owner Can Approve Yes Security Level Public Approver Can Modify Yes Access Level Full Can Change Forward – To Yes Forward Method Hierarchy Can Change Forward – From No Default Hierarchy XX_REQ_HIERARCHY Can Change Approval No Approval Workflow Requisition File Ref: 349834792.Document – Scheduled Release Type Name Document Type layout Contract Terms Layout Release Scheduled Scheduled Release Attributes – Scheduled Release Owner Can Approve Yes Security Level Public Approver Can Modify Yes Access Level Full Can Change Forward – To No Forward Method Hierarchy Can Change Approval No Archive On Approve Hierarchy Approval Workflow PO Approval Default Hierarchy Workflow Startup Process PO Approval Top Process Document – Purchase Requisitions Type Name Document Type layout Contract Terms Layout Requisition Purchase Purchase Requisition .doc Company Confidential .For internal use only .

Hierarchy Use Contract Agreements for No Workflow Startup Process Main Requisition Approval Auto Sourcing Approval Transaction Type Autocreate Workflow PO Create Documents Autocreate Workflow Overall Document Creation/Launch - Startup Process Approval File Ref: 349834792.For internal use only .doc Company Confidential .

Way Type Level Internal Requisition Order XX Mixed Price Break Type Cumulative Source Receipt Close Tolerance (%) . Rate Type Corporate Internal Requisition Order Match Approval Internal 4. Enforce Price Tolerance Amount - Enforce Full Lot Advisory Display Disposition Messages Yes Quantity Receipt Close Point Received Notify if Blanket PO Exists Yes Cancel Requisitions Always Allow Item Description Update Yes PO Output Format PDF Enforce Buyer Name SBI Buying Company . Enforce Supplier Hold Identifier Maximum Attachment 10 Gapless Invoice Numbering - Size (in MB) Email Attachment Attachments. Price Type Minimum Release Invoice Close Tolerance (%) - Amount (AED) File Ref: 349834792.For internal use only . Oracle Purchasing lets you define specific categories of system Options when you enter one of the following values in the Additional Purchasing Options field. Enforce Price tolerance - Percentage Price Tolerance Amount .Define Purchasing Options Navigation: Purchasing Responsibility>Setup>Organizations>Purchasing Options Description: Use this form to set up your system Options. Document Control Price Tolerance .zip RFQ Required - Filename Document Default Requisition Import Group- Vender Line Type Goods By Minimum Release Amount .doc Company Confidential .

doc Company Confidential .00000 Account Automatic Offset Method None Document Numbering Entry Type Next Number RFQ Number Automatic Numeric 5 Quotation Number Automatic Numeric 1 PO Number Automatic Numeric 38560 Requisition Number Automatic Numeric 7737 File Ref: 349834792.00000.00000.22004.Quote Warning Delay 30 Receipt Accounting Accrue Expense Items At Receipt Accrue Inventory Items At Receipt Expense AP Accrual 04.103.0000000.For internal use only .

00000 File Ref: 349834792.103.doc Company Confidential .0000000.Define Receiving Options The receiving options are defined as a part of Inventory Organisation definition in the Oracle Inventory module. Navigation: Purchasing Responsibility>Setup>Organizations>Receiving Options Enforce Ship-To None Allow Substitute Receipts Yes ASN Control Action None Allow Unordered Receipts Yes Receipt Days Early 10 Allow Express Transactions No Receipt Days Late 10 Allow Cascade Transactions No Receipt Days Exceed- NNone Allow Blind Receiving No Action Over Receipt Tolerance (%) 0 Validate Serial Numbers on RMA Receipts No Over Receipt Action RReject Interface to Advanced Pricing No RMA Receipt Routing Direct Delivery Interface to Transportation Execution No Receipt Routing Direct Delivery Receipt Number Automatic Generation Receiving Inventory 04.00000.103.0000000.00000.00000.00000.For internal use only .1 Receipt Number Type Numeric Account 2503.00000 Next Receipt Retroactive Price Adjustment Number 71134 Account ValidateLots on RMA 04.1 Restricted Clearing Account Receipts 2504.

00000 Future Dated Payment 04.00000 Discount Taken 10.For internal use only .0000000.00000.103.0000000.103.00000.103.42001.103.0000.57001.00000.12709.00000.Define Financial Options Navigation: Purchasing Responsibility>Setup>Organizations>Financial Options <Accounting> Future Periods 1 Liability 04.0000 PO Rate Variance Gain 04.00000.0000000.0000.00000.00000.0000.0000000.00000 PO Rate Variance Loss 04.00000 Prepayment 04.00000 Expense Clearing - Miscellaneous - Retainage -- <Supplier – Purchasing> RFQ – Only Site No Ship-To Location XX Hospital Main Inventory Organization Bill-To Location XX Hospital Inventory Organization XX .21201.00000.XX Hospital Inventory Organization Ship Via - FOB - Freight Terms <Encumbrance> Use Requisition Encumbrance Yes Reserve At Completion Yes Use PO Encumbrance Yes <Tax> File Ref: 349834792.57001.doc Company Confidential .0000000.320050.103.00000.00000.

Member State - VAT Registration Number - <Human Resources> Business Group XX BG Expense Reimbursement Address Home Use Approval Hierarchies Yes Employee Number – Method Manual Next Automatic Number File Ref: 349834792.doc Company Confidential .For internal use only .

For internal use only .Open and Closed Issues for this Deliverable Open Issues ID Issue Resolution Responsibility Target Date Impact Date Closed Issues ID Issue Resolution Responsibility Target Date Impact Date File Ref: 349834792.doc Company Confidential .