ORACLE PURCHASING

AUTHOR:SHIVMOHAN PUROHIT

Overview
Oracle Purchasing is a comprehensive procurement solution designed to help purchasing professionals to manage the procurement process at Right Price and in Right time and to develop strategic supplier relationships. Development of strategic supplier relationships requisitions,
Auto Create Purchase Requisition A u t o C r e a t e Request for Quotation (RFQ) Quotation

Supplier

Purchase Order

Receipts

Returns

Payments

Content
Unit I : Supply Base Management
Supplier Information Supplier List Sourcing Rule Approved Supplier List Automatic Sourcing Supplier Item Catalog

Unit II : Requisitions
Requisition Templates Purchase Requisitions. Internal Requisitions Managing Buyer Workload

Unit III : Request For Quotation and Quotation
Entering RFQ’s Auto create Entering Quotations Quote Analysis

Cascade and Express Receipts Receiving Transactions Returns Corrections .Content Unit IV : Purchase Orders Standard Purchase Orders Planned Purchase Orders and Planned Releases Blanket Purchase Agreements and Blanket Releases Contract Purchase Orders Auto Create Purchase Orders and Releases Automatic Release Generation Unit V : Receiving Advance Shipment Notices (ASNs) Managing Receipts:Direct. Standard and Inspection Unordered.

and quality performance Create request for quotations (RFQ) automatically from on-line requisitions Create Purchase Orders automatically from on-line requisitions Define custom supplier quotation lists for RFQs Create supplier quotations automatically from RFQs.Unit I : Supply Base Management Key Features Create and rank approved supplier lists by item or commodity Associate supplier item numbers with internal parts Prevent purchases from unapproved suppliers Compare actual volume to target volume by supplier Assess supplier price. or enter them directly Analyze quotations and decide which should be available to reference on requisitions and purchase orders (POs) Access and reference your catalog/quotation information on-line while creating documents . service.

beginning with the requisition request through to the payment for goods or services received.Unit I : Supply Base Management Supplier information is a vital part of Oracle Purchasing and is used in all components of procurement. User need to define a supplier before performing any activities within Oracle Purchasing. Purchase Requisition Request for Quotation (RFQ) Quotation Supplier Information Purchase Order Receipts Returns Payments .

user can designate a site to receive only requests for quotation. In addition . until user certify the supplier as a purchasing site.Unit I : Supply Base Management Supplier sites and Contacts: User can identify multiple business sites for each supplier and enter specific purchasing details for each site. In addition. Supplier Site-A Site-B Site-C Contact 1 Contact 2 Contact 3 Contact 4 Contact 5 Contact 6 Navigation : Supply Base-> Suppliers Navigation: Supplier Base -> Supplier . User can decide to which site or sites the invoices and purchase orders are sent. user can identify an unlimited number of contacts for each site.

. Alternatively.Specific Information : User has the ability to identify terms and conditions. User can open the catalog from an existing requisition or purchase order and add lines to that document. purchase details and payment information for each supplier site. user can open the catalog from the Navigator and search for item information from there. Terms and conditions Payment methods Site-A Supplier Site-B Terms and conditions Payment methods Site-C Terms and conditions Payment methods Supplier Item Catalogue: The Supplier Item Catalog provides a simple mechanism for locating items and their source information for the purpose of creating purchase order and requisition lines.Unit I : Supply Base Management Site. The Supplier Item Catalog does not support Outside Processing.

. Approved Supplier List: This repository includes information about all suppliers with business statuses including Approved. Debarred. Sourcing rules can also specify how to replenish all organizations. as when the entire enterprise gets a subassembly from a particular organization. this profile needs to be set to the name of the default category set used by Purchasing. such as purchased items in plants. the Assignment Set name user choose for this profile option is the Assignment Set name should specify when user assign sourcing rules in the Sourcing Rule/Bill of Distribution Assignments window. This profile option must be set if you are using sourcing rules in Purchasing. Sourcing Rule: User can define sourcing rules that specify how to replenish items in an organization. Therefore. Refer to Profile option MRP: Default Sourcing Assignment Set This profile option indicates which sourcing rules assignment set will be used in Purchasing and Supplier Scheduling. or New.Unit I : Supply Base Management Supplier List : Supplier Lists window will be used to enter and edit supplier lists. Purchasing automatically defaults this source document information. Refer to Profile option MRP: Sourcing Rule Category Set If sourcing rule is used in Purchasing. User can copy suppliers from the supplier lists onto the RFQ supplier list while creating Request For Quotation (RFQ). Use the Approved Supplier List and Supplier– Item Attributes windows to specify blanket purchase agreements or quotations as source documents for a particular item and supplier or particular item category (commodity) and supplier.

Prior Purchases. blanket purchase orders. User can easily assign any item with an item number to a specific blanket purchase agreement or quotation created. if you specify one. Alternatively.Po:Automatic Document Sourcing . . You can open the catalog from an existing requisition or purchase order and add lines to that document. or quotations you create.)->Select the down arrow to place the line on to order pad-> Select Select the Select button to add the order pad lines to the requisition or purchase order from which you accessed the catalog. Purchasing automatically assigns the name of the supplier for the blanket purchase order and quotation to any requisition for this item. where you must specify which source documents to use. Yes means that Purchasing automatically defaults source document and pricing information for an item from the most recently created blanket purchase agreement or quotation. Unit I : Supply Base Management Refre to Profile Option . Sourcing Rule and Requisition Template. you can open the catalog from the Navigator and search for item information from there. No means that this source document information comes from the Approved Supplier List window. must match the sourcing rule Supplier and Site to default the supplier information or source document information successfully.Unit I : Supply Base Management Automatic Sourcing: Automatic sourcing automatically defaults sourcing information onto the requisitions. Attention: The supplier Name and Site. Refer to profile option PO: Default Supplier Item Catalog Option. Navigation: Requisition/Purchase Orders Windows->click on Catalog button-> click on find button-> select the appropriate tabbed region (Negotiated sources. Supplier Item Catalog: The Supplier Item Catalog provides a simple mechanism for locating items and their source information for the purpose of creating purchase order and requisition lines. determines which of these tabbed regions is the default when the catalog opens from the menu.

Unit I : Supply Base Management Overview: Sourcing Rule Bye from Supplier A Bye from Supplier B 50% of the time Rank 2 50% of the time Rank 1 Refer to Profile option MRP: Default Sourcing Assignment Set Define Sourcing Rule for the Supplier Create Assignment set Assign sourcing Rule to Item and then to Assignment set Navigation: Supplier Base -> Sourcing Rule .

eneter Supplier name with business rule as direct and status as new/ approved/ Debar against each item and select Enter source document (Quotation/Blanket Order) details Against each item in the attribute Window.Unit I : Supply Base Management Approved Supplier List: Define ASL for each item. to enable to default The source information while creating Purchasing documents .

or delivery stage. Create internal requisitions that are sourced from your inventory by means of an internal sales order. • Review the current status and action history of requisitions. Access supplier/item catalogs to create documents Distribute expenses across multiple cost centers. and notes to buyers.Unit II : Requisitions Key Features Create. User should always know how planned expenses compare to budget. or departments Use multiple currencies Build account distributions automatically Use requisition templates for frequently requested items Import requisitions from other systems such as material or distributions requirement planning applications. User should also be able to enter suggested supplier information.User should always know who approves requisitions and whether they are in the approval.delivery instructions. . multiple accounting distributions. projects. edit. approvers. and review requisition information on– line. receiving. Perform on– line funds checking before creating requisitions. and receivers. purchasing.

user can use Oracle Work in Process to generate on-line requisitions for outside processing requirements. Oracle Purchasing. Purchasing displays all template lines that are valid for the destination organization. After user define a template. user can reference the template in the Supplier Item Catalog. source the requisitions with the best suppliers.Unit II : Requisitions Purchase Requisitions With on-line requisitions. . If user reference an existing document. Requisition Template : Templates automate requisitioning of commonly ordered items like office supplies. Oracle Order Entry. user can use Oracle Master Scheduling/MRP and Oracle Inventory to generate on-line requisitions automatically based on replenishment requirements. Purchasing adds all lines on the document to the template. You can reference multiple documents to add all their lines to the same template. When user do so. and Oracle Inventory combine to give a flexible solution for inter-organization and intra-organization requests. Internal Requisitions Internal requisitions provide the mechanism for requesting and transferring material from inventory to other inventory or expense locations. user can specify the items individually or they can reference an existing requisition or purchase order. To create a template. user can easily centralize the purchasing department.

Order Management.Unit II : Requisitions Requisition Import: Using Requisition Import. Master Scheduling/MRP. Requisition Import lets user integrate Purchasing with new or existing applications. Work In Process. . and Inventory all provide requisition information to the requisition interface table from which Requisition Import creates requisitions. user can import requisitions from other Oracle Applications or from non– Oracle systems.

Unit II : Requisitions Oracle Modules MRP WIP Demand INV OM Oracle Purchasing Open Requisition Interface Table (1) Manually (3) Requisition Import Create Requisition Create Requisition (2) Use Catalog as source Requisition Approval Navigation: (1) Requisitions-> . further detail (3) Requests -> Select . Requisitions (2) Requisitions -> . Requisition Import -> . Requisitions->Catalog -> . Refer to slide no 9 for . Select Source Requisition Pool .

Unit III: RFQ & Quotations Request For Quotation and Quotation : Purchasing provides user with request for quotation (RFQ). match supplier quotations to user RFQ. Quotation : Use the Quotations window to: Enter and edit quotations. . Identify requisitions that require supplier quotations and automatically create a request for quotation. User can create an RFQ from requisitions. Quote Analysis: Use this window to approve the quotation. Purchasing provides complete reporting to control your requests for quotations and evaluate supplier responses. Review and edit quotations you copied from RFQs. and quotation features to handle sourcing needs. and automatically copy quotation information to purchase orders.

Request For Quotation Manually create RFQ Supplier from Supplier List Navigation: RFQ’s and Quotations->RFQ’s Supplier A R F Q Enter RFQ Supplier B Supplier C Autocreating RFQ Navigation: Auto Create-> find-> Select document type as RFQ Auto creation R F Q Requisition Line Pool Query existing lines Choose lines from query results Manual creation .

Quotation Manually enter quotation Quotation analysis for approval / un approval Copy document from RFQ window to create quotation Navigation: RFQ’s and Quotations->Quotations RFQ’s and Quotations->Quotation analysis .

Access sourcing and inventory information on-line while building Pos. Review the status and history of purchase orders at any time for all the information user need. Create POs in any currency. Check funds availability while creating purchase orders so user always know how their planned expenses compare with budget Build account distributions automatically. Provide multiple shipment schedules per PO line. plants. Create POs for different types of items including services and one-time purchases. cancel. Create standard purchase orders and blanket purchase agreements from both on-line and paper requisitions.  Source a single requisition line from two or more suppliers Define purchasing contracts and reference them on Pos. Consolidate and centralize purchase requirements from multiple warehouses. or final close POs to control future transactions. or locations. . Record supplier acceptances.Unit IV: Purchase Orders Key Features: Auto Create POs from on-line requisitions. Freeze.

. User can later issue scheduled releases against the planned purchase order to place the actual order. It includes tentative delivery information and accounting distributions for goods or services that user want to buy over a period of time. Contract Purchase Agreements: User can create contract purchase agreements containing master terms and conditions for a supplier and then reference the contract number on the line of a standard purchase order.Unit IV: Purchase Orders Standard Purchase Orders: User can create standard purchase orders for one-time purchases of items or services from a supplier. Blanket Purchase Agreements: User can quickly define blanket purchase agreements for specific items and associated price breaks. If user use encumbrance accounting. Planned Purchase Orders: User can create planned purchase orders manually. Blanket purchase agreements allow stable pricing over the life of the agreement while allowing flexible delivery schedules and order quantity commitments as user release against the blanket. Each standard purchase order can have multiple lines. A planned purchase order is a combination of a standard purchase order and a blanket purchase agreement. Oracle Purchasing monitors the total amount you have spent against the contract purchase agreement. User can reference contract purchase agreement numbers on the lines of standard purchase order. Each purchase order line can have multiple shipments distributed across multiple accounts. user can use the planned purchase order to reserve funds for long term agreements.

Manually enter Purchase Order Submit for approval Copy document from Quotation window to create Purchase Order Purchase Order Components Document details (Header) Item or Service details (Lines) Supplier delivery (Shipments) Internal distribution details (Distributions) . Blanket. Planned and Contract Navigation: Purchase Orders -> Purchase Orders.Unit IV: Purchase Orders Types of Purchase Orders : Standard.

Standard PO. 2) Planned PO and 3) Blanket Release PU R C H AS E O R D ER Submit for approval Auto creation Query existing lines Choose lines from query results Manual creation Requisition Line Pool Select lines for auto create Add lines to order pad for auto create Navigation: Auto Create-> find-> Select document type as 1 or 2 or 3 .Unit IV: Purchase Orders Auto create Purchase Order : 1) .

Automated Purchase Order Prerequisite INV / WIP/ MRP &OM Modules 1) Set Profile option: PO: Release During ReqImport to yes 2) Create ASL with Business rule as direct’ and source as ‘Approved’ Click on attributes Select Automatic releases as Release Method & blanket Agreement as a source document Open requisition interface table Requisition Import Auto releases Approved Blanket Release Approved requisitions ASL: Approved Supplier List Navigation: Supply Base ->ASL .

user can prevent entry of a receipt unless it is matched to an order shipment Record receipt of substitute items based on user order. and acceptable receipt location with tolerances that user specify Optionally require blind receiving.Unit V: Receiving Oracle Purchasing let user to control the items they order through receiving. or organization defaults. the acceptable delivery window. supplier. for example. Inspect items and evaluate supplier quality performance. User can require inspection for some items and dock-to-stock receipt for others Control the quantity of items user receive. if user organization does not allow receipt of unordered items. and internal delivery. Record receipt of unordered items based on user item. and internal delivery of the items you receive. inspection. or organization defaults Return items to the supplying supplier Correct receiving transaction errors . Specify two. or four-way matching. Receive individual shipments or all items with a few keystrokes. item. transfer. User can use these features of Oracle Purchasing to control the quantity. three. Key Features: Use routing controls to enforce material movement through receiving. quality. supplier. for example.

and make receiving corrections. Receiving dock and the area in which items are inspected are receiving locations. and returnable container information. user can create a receipt against the RMA as other receipt. . country of origin. purchase order number. Receiving Locations Receiving locations are designated areas in which user temporarily store items before deliver them to their final destinations. time. inspect the return. Receiving locations are not required when the routing is Direct Receipt. and identification number. packing slip data. item detail including cumulative received quantities. Advance Shipment Notices (ASNs) An Advance Shipment Notice (ASN) is transmitted via Electronic Data Interchange (EDI) from a supplier to let the receiving organization know that a shipment is coming. When the return arrives at user receiving dock. If the customer wishes to return the goods. the sales representative creates a return material authorization (RMA) authorizing the return.Unit V: Receiving Return Material Authorizations (RMAs) User can use Purchasing receiving functionality to receive goods returned by their customers. return the repaired goods to the customer. freight information. These are goods for which a sales order in Oracle Order Management was created. The ASN contains details including shipment date.

Unit V: Receiving Unordered Receipts User can receive items from a supplier when they do not have a corresponding purchase order. . First receive the items as Unordered Receipts in the Receipts window. User can also receive returned items from a customer that were issued on a sales order in Order management and do not have RMA. Purchasing starts with the first receipt and enters deliveries for each subsequent receipt for this item until the cascade quantity is met. release. Cascade mode is applicable only for receipts for the same item. user cannot modify default quantities. and shipment schedule to which user want to match the unordered receipt. line. but they can record the delivery of many receipts at once. Then use the Match Unordered Receipts window to specify the purchase order or RMA number. Then perform a standard receipt for the unordered item shipment quantity. Express and Cascade Transactions Purchasing offers two functions to facilitate transaction entry: Express and Cascade. In Express mode. User can create a new receipt or add to an existing receipt for the supplier or customer who shipped the unexpected items. In cascade mode.

Unit V: Receiving Po lines with Standard receipt routing Receive items to “Receiving” Transfer stock from Receiving to Final delivery location D E L I V E R y Po lines with Direct receipt routing Receiving items directly into Final delivery location Po lines with Inspection required Receive items to “Receiving” Enter Inspection results Transfer accepted items To final delivery location Return the rejected items back to supplier Navigation: Receiving -> Receipts .

Unit V: Receiving Types of Receiving Manual receipt One line at a time Express receipt Multiple lines at one time Per supplier Cascade receipt One receipt of multiple shipment of the same item Per supplier .

ORACLE PURCHASING .

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