eBS Release 12.1.

3 New Features- Oracle Advance Procurement

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Introduccion Nuevas Funcionalidades 11.5.10 Center-Led Procurement Features Purchase Order Execution in Any Organization Global Contract Purchase Agreements Procurement Execution in Shared Services Environments Receiving Accounting & Drop Shipments Pricing Model Complex Pricing with Oracle Advanced Pricing Purchase Order Printing and Communication Logistics Receiving Open Interface Enhancements Nested License Plate Number (LPN) and Lot/Serial Buyer Driven Logistics Management Timestamps for Improved Logistics Management Requisition Approval Management using Oracle Approvals Management Accounting Encumber Blanket Agreements Gapless Self-Bill Invoice Numbering FDA CFR 21 Compliance Procurement Contracts Services Procurement Nuevas Funcionalidades R12 Professional Buyer¶s Work Center Requisition Management Purchase Order Creation and Maintenance Purchase Agreement Creation and Maintenance Negotiations in Oracle Sourcing Enhanced Catalog Access New Supplier Setup User Interface Document Styles Procurement for Complex Services Multi-Org Access Control (MOAC) E-Business Tax Communicate Document Attachments to Suppliers Oracle Supplier Network - Rapid Supplier Enablement Support for Contractor Purchasing Users Auto-Approval Tolerance for Change Orders Subledger Accounting for Budgetary Control Actions Chargeable Subcontracting Support for Unified Process Manufacturing/Discrete Inventory Dual Unit of Measure Control Material Status Control Sublot Control Depot Repair Enhancements Mejoras 11.5.10 Pricing Retroactive Price Changes Price Update Flexibility on Purchase Orders, Releases Custom Pricing APIs Logistics Receiving Locator Support Drop Ship Enhancements Accounting Category Based Account Defaulting in Oracle Purchasing Selectively Un-reserve fund 6 6 6 6 6 7 7 7 7 8 8 8 8 9 9 9 9 9 10 10 10 10 11 11 11 12 13 14 14 14 15 16 17 17 17 18 18 18 18 18 19 19 19 20 20 21 21 21 21 21 22 22 22 22 22 23

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Import Grant Information Purchasing Documents Open Interface Enhancements AutoCreate and Purchase Order Entry Usability Mejoras R12 Document Publishing Enhancements Support for RTF and PDF layout templates Publish Contracts using user specified layout Maintain Sourcing Rules/ASLs for Agreement Items Compliance to Packaging Constraints eAM Support for Services Procurement Model Complex Pricing for Blanket Line Items Advanced Approval Support for Requisitions New User Interface for Oracle Purchasing Setups Extensiones vs Nuevas Funcionalidades OM-D001 - Compra Venta entre Empresas.

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En el presente documento analizaremos las nuevas funcionalidades de la versión 12.1.3 de Aplicaciones Oracle para los módulos: Compras ±POPara cada módulo analizaremos las funcionalidades añadidas, y las mejoras realizadas en las funcionalidades existentes en versiones anteriores. .



Oracle Purchasing - PO - Compras
In 11.5.10, Oracle has introduced a variety of substantial new functionality to Oracle Purchasing. The new capabilities come in two forms: optional functionality available through integration to other components in the eBusiness Suite and direct enhancement of the Oracle Purchasing product. New functionality offered includes the following areas: Pricing, Logistics, Accounting, Approvals, and Central Procurement. Purchasing has also been extended to support two new products: Oracle Procurement Contracts and Oracle Services Procurement Oracle Purchasing is the application for procurement professionals that streamlines purchase order processing while strengthening policy compliance. It is a key component of Oracle Advanced Procurement, the integrated suite that dramatically cuts supply management costs


Nuevas Funcionalidades 11.5.10
Center-Led Procurement Features
With 11.5.10, Oracle Purchasing includes a powerful solution for automating the purchase order execution, receipt and invoice where the requesting business unit differs from the organization that issues the purchase order. With the intercompany transaction flows established, the system can issue the PO from the appropriate buying center and handle the required accounting charges. This solution can be especially useful for companies that use shared service centers or when POs need to be issued by specific subsidiary organizations Purchase Order Execution in Any Organization
Buyers were able to centrally negotiate pricing and contract terms on behalf of multiple organizations using Oracle Sourcing in 11.5.9. The finalized agreement was captured as a global blanket agreement in Oracle Purchasing. Enabled organizations were able to leverage the centrally negotiated pricing but forced to generate purchase orders in the organization where demand originated. Now, buyers can define purchase order execution organizations for each of the demandgenerating and enabled organizations on a global blanket agreement. For example, a European-based company can create and enable a global agreement with a supplier based in China and specify that all purchase orders issued against the global agreement will be issued from an international subsidiary organization in China. Furthermore, buyers can also specify the supplier location (supplier site) from which demand will be satisfied for each of the enabled organizations. Global Contract Purchase Agreements
Oracle Purchasing introduces the new global contract purchase agreements document with 11.5.10. Global contract purchase agreements, like global blanket agreements, enable companies to centralize supplier relationship management and

to standardize terms and conditions across all enabled organizations when doing business with a given supplier. Buying organizations may find global contract purchase agreements especially helpful when considering how best to use Oracle Advanced Pricing capabilities with a central procurement organization. In addition, global contract purchase agreements may be helpful in some situations when extending a single negotiated supplier catalog across many organizations. Procurement Execution in Shared Services Environments
Buyers in central procurement organizations are typically responsible for procuring on behalf of multiple demand raising organizations within a company. With this release, Oracle Purchasing provides a powerful framework from which an organization¶s complex procurement environment can be mapped directly to system execution. For example, enterprises can: ‡ Map purchase order generating organizations (Shared Service Centers) to demand raising organizations via Global Blanket Agreements or Global Contract Purchase Agreements. ‡ Continue to rely on automatic document creation to preserve automated generation of purchase orders where possible, even when the purchase order will be created in a different organization than where demand originated. ‡ Extend buyer productivity through access to central procurement functions from the AutoCreate workbench when manual intervention or manual purchase order creation is required. Receiving Accounting & Drop Shipments
Regardless of which organization issued the purchase order, receipts continue to be processed in the demand raising organizations. To reconcile accounting between organizations, companies model their financial relationships and the system initiates and executes appropriate cost transfer/invoicing accounting transactions, especially if these flows cross Legal Entities and Sets of Books. Business transactions like receipts, invoice matches and payments automatically initiate the appropriate cost transfer or inter-company invoicing accounting transactions based on the rules defined in the financial relationship between the purchase order creation and receiving organizations. Please refer to the About Oracle Inventory in Oracle Supply Chain Management document for details on Financial Flow Modeling. The drop shipment process has also modified to go across traditional organization boundaries. Companies can have local or central order capture organizations that interface with a center-led procurement shared services organization. In fact, the order capture organization and purchasing organization can even belong to different Sets of Books. The appropriate accounting and inter-company invoicing transactions are automatically initiated based on the rules defined in the financial relationship between the sales order and purchase order creation organizations.


Pricing Model Complex Pricing with Oracle Advanced Pricing
Oracle Advanced Pricing is now integrated with Oracle Purchasing and Oracle iProcurement. Oracle Advanced Pricing is a flexible pricing engine capable of addressing complex pricing needs of customers. Using Oracle Advanced Pricing,

purchasing professionals can setup complex pricing structures in the form of price lists, price formulas and modifiers. Price lists contain the basic information that associates price and currency with an item, service, group of products or services, or sub-component. Pricing formulas let you model mathematical relationships for product pricing using certain order attributes. Price modifiers allow you to setup discounts or surcharges that can be applied on top of base prices. To price requisitions and purchase orders based on pricing rules setup in Oracle Advanced Pricing, the requisition or purchase order line need simply reference a contract purchase agreement. Purchase Order Printing and Communication
Oracle Purchasing includes a powerful and flexible solution for creating and formatting purchase orders in Portable Document Format (PDF). In Oracle Purchasing, the buyer can view a draft version of the PDF purchase order. After approval, generated PDF documents can be sent via email, print, or fax and are viewable online via Oracle iSupplier Portal. You can set up layout templates that define how your purchase orders should be formatted, including the company logo,headers, footers, and watermarking. If Procurement Contracts is being used, the associated Terms and Conditions can be added to the PDF document. For more information, please see the dedicated document for that new product.


Logistics Receiving Open Interface Enhancements
Most companies managing receiving docks in a high volume environment use barcodes and RF scanning devices to record shipment and receipt information. Such capabilities are readily available when receiving using the Oracle Mobile Supply Chain (Oracle MSCA) or Oracle Warehouse Management (Oracle WMS) applications. Should a company have some other form of barcode/RF support then the Receiving Open Interface (ROI) provides a mechanism to process the generated transactions. Substantial improvements to ROI include: ‡ Support for most receiving transactions, including Advanced Shipment Notices (ASN), receipts, deliveries, inspections, and transfers. ‡ Multi-stage transaction processing. For example, a user may import related Receive, Transfer and Deliver transactions as and when they occur. ‡ Receiving transactions against Return Material Authorizations (RMA), Internal Orders, and Inter-organizational transfers. ‡ The import of transactions in ³Batch,´ ³Immediate,´ and ³Online´ modes. These enhancements are intended to significantly improve the productivity of personnel working on receiving docks by minimizing manual data entry requirements. Nested License Plate Number (LPN) and Lot/Serial
Suppliers can include Lot/Serial and LPN information on Advance Shipment Notices (ASNs). This information is automatically captured in subsequent receipt transactions, thus greatly reducing manual data entry at time of receipt. Users can define lot and serial information on all receiving transactions imported via ROI. These include receipts, transfers, inspections, deliveries, returns and corrections. Users may now use License Plate Numbers (LPNs) to improve the efficiency of the receiving process by grouping items and transacting on the group as a whole. This allows companies to consolidate material from one or more shipments into

one LPN and track at the container level. Users can also record LPN pack and unpack events during the receiving process to accurately reflect the changing levels of aggregation. Nested LPNs can also be defined to emulate containers within containers. Please note that ability to use LPNs in the receiving process is available only for receiving transactions imported via the receiving open interface. Buyer Driven Logistics Management
Some companies choose to manage inbound shipments from their supply base. Oracle Purchasing is now integrated with Oracle Transportation Management to provide transportation execution personnel and planners visibility into open purchase orders, shipments available for pickup at supplier sites, and in-transit shipments. Based on this information, planners can create an optimal route for their logistics fleet. This route can include a combination of supplier locations for goods pickup (inbound shipments) and customer locations for shipment drop-off (outbound shipments). This feature allows companies to greatly reduce freight costs by optimizing their transportation plans. Timestamps for Improved Logistics Management
Users can now specify a time associated with need by and promised dates on requisitions and purchase orders. This allows customers to be more specific in communicating their requirements to suppliers. Oracle Purchasing also allows capture of timestamps for receiving transactions. Some organizations may find the additional time component useful to more effectively plan resource requirements, receiving activity and downstream material usage, especially in low lead-time, JIT environments.


Requisition Approval Management Approvals Management

using Oracle

Oracle Purchasing now provides the option to use Oracle Approvals Management as the approval engine for requisitions. Some of the benefits include: ‡ Single approval engine with consistent and uniform approval policies across multiple Oracle Applications modules including Oracle iExpenses. ‡ Approval policies can be defined once and be leveraged across multiple products; hence less maintenance is required. ‡ Approval policies can easily be extended using the standard features of Oracle Approvals Management eliminating the need to customize individual applications or the workflow.


Accounting Encumber Blanket Agreements
Many organizations negotiate long-term agreements with suppliers and commit to a certain level of spending during the life of the agreement. These minimum spending commitments need to be captured and budgeted. Buyers now are able to capture these commitments and encumber funds on Blanket and Global Blanket Agreements to accurately reflect existing commitment levels. These funds are

encumbered against a summary budget account as called out by the buyer on the agreement. The encumbrance on an agreement is gradually relieved as purchase orders or releases are created against the agreement. Requisition lines referencing encumbered agreements are not encumbered, as funds committed on the backing agreement have already been reserved.


Gapless Self-Bill Invoice Numbering
Self-bill Invoices (SBI) is an automated invoicing where the buying company creates an invoice on behalf of the supplier. This process lowers the invoicing costs, errors and cycle time for both buyers and suppliers. SBIs include evaluated receipt settlements, debit memos, and purchase price adjustment invoices. Certain countries require that invoice numbers on SBIs be gapless. Oracle Purchasing now supports gapless invoice numbering for all self-billing invoices. The buying organization has the flexibility to turn on or off gapless SBI numbering by supplier site or by operating unit.


FDA CFR 21 Compliance
Oracle Purchasing now aids compliance with the FDA Code of Federal Regulations 21 Part 11 requirements governing the technical aspects of computer and software systems that are used by manufacturers. Specifically, Oracle Purchasing now satisfies the two primary requirements of CFR Part 11: electronic records (³e-Records´) and electronic signatures (³e-Signatures´). The new functionality is manifest in two areas: the Approved Supplier List (ASL) and Receiving Inspections with Oracle Quality. Changes to an ASL attribute are now recorded through an e-Record to an evidence store. Likewise, an e-Record snapshot is also stored for Receiving Inspections using Oracle Quality. Additionally, Receiving Inspections using Oracle Quality capture an e-Signature through a self-service browser window. Please refer to the Oracle Quality RCD for additional information.


Procurement Contracts
Oracle Procurement Contracts provides robust contract management capabilities for procurement professionals, including a sophisticated contract terms library, robust deliverables tracking and formal change management. Organizations can use these capabilities to minimize exposure to contractual risks, maximize their buying power, and eliminate erroneous payments± from sourcing through contract award, order execution through termination or renewals. Oracle Purchasing allows users to leverage these new capabilities in various aspects of the procurement flow ± contract authoring with sophisticated terms, deliverables definition and tracking, contract binding and document signatures, document communication in PDF format, contract attachments with versioning, and more. Please refer to Procurement Contracts RCD for more information.


Services Procurement
Oracle Services Procurement enables a streamlined process for sourcing, procuring and managing of services, such as contingent labor, facilities management, marketing, information technology, consulting services, and more. These commodity areas usually account for a large percentage of an organization¶s spend. Oracle Purchasing enables key business functions in the services procurement flow, including preferred supplier identification and

management, long term agreements for fixed price and rate based services, purchase order management, time card management and auto invoice generation and payment.

Please refer to the Oracle Services Procurement RCD for additional information.


Nuevas Funcionalidades R12
Professional Buyer¶s Work Center
Oracle Purchasing Release 12.0 speeds up daily purchasing tasks with an enhanced Professional Buyer¶s Work Center. Based on the latest web-based user interface models, the Work Center is a central µLaunch Pad¶ from which buyers can efficiently perform their daily tasks: ‡ View and Act upon Requisition Demand ‡ Create and Manage Orders and Agreements ‡ Run Negotiation Events including Auctions and RFxs (requires Oracle Sourcing) ‡ Manage Supplier Information The Professional Buyer¶s Work Center leverages Multi-Org Access Control (MOAC) by allowing buyers to view and manage documents across all of the operating units they service. For more details, please reference the MOAC section of this document.

Professional Buyer¶s Work Center ± Launch Pad to Perform Daily Tasks Requisition Management
The Work Center offers a streamlined, HTML user interface to look up and act upon requisitions. Buyers can aggregate demand from different organizations and consolidate it in a single document in an organization that they designate. The document could be a solicitation (Auction/RFx) for bids (requires Oracle Sourcing) or a Standard Purchase Order. Buyers can search for requisitions with several pre-configured views and advanced search criteria. Default views include My Requisitions, My Urgent Requisitions, My Requisitions requiring a RFQ, Requisitions with a Suggested Supplier, Requisitions with a New Supplier, and Unassigned Requisitions. In addition, buyers can save their own views, specifying custom search criteria and display columns. Buyers can view details of the requisitions by clicking the requisition links. In addition, buyers can return requisitions to requesters to solicit additional information, reassign requisitions to other buyers, split requisition lines in order to source from multiple suppliers and replace off-catalog requests with items available in the catalog.

Requisition Demand - View All Requisitions Assigned to the Buyer Across Multiple Operating Units Purchase Order Creation and Maintenance
The Work Center user interface optimizes the standard purchase order creation and management processes. The new user interface allows buyers to edit and view delivery schedules and account distributions across all order lines, thus eliminating the need to drilldown on individual lines. For simple purchase orders that do not require staged delivery schedules or multiple account distributions, buyers can quickly enter all necessary information for the orders in the header and line sections, without having to navigate to the schedules and distributions sections.

Orders ± User Interface Tailored to PO Creation

Purchase Order Lines ± Enter Schedule and Delivery Information When Creating Lines Purchase Agreement Creation and Main tenance
The Professional Buyer¶s Work Center provides a dedicated user interface for creating and maintaining agreements, targeting the strategic buyer responsible for agreement maintenance and compliance.

Agreements ± User Interface Tailored to Creating Long-Term Agreements (Schedule and Delivery Information Replaced by Agreement Controls)

In addition, user extensible attributes can now be captured on the blanket agreement to further enrich the description of the products and services listed in the document. Such attributes could be generic to all items (Example: Manufacturer Number, Lead time) or could be category specific (Example: Color, Size, etc.) Negotiations in Oracle Sourcing
The Professional Buyer¶s Work Center increases the drill down capabilities between Oracle Purchasing and Oracle Sourcing. Buyers can now easily navigate from purchasing to sourcing documents, and vice-versa, using a single, friendly user interface Enhanced Catalog Access
Release 12.0 of Oracle Purchasing builds on the popularity of Oracle iProcurement¶s search capabilities by offering professional buyers a similar search interface to easily find the items they need to procure. From the Demand Workbench, buyers can access the catalog to find negotiated alternatives to noncatalog requests. While authoring orders and agreements, buyers can use the catalog to quickly add items, thereby accelerating the document creation process. New Supplier Setup User Interface
Release 12.0 introduces a new HTML UI for managing suppliers, which replaces the existing Suppliers Form.

Obsolete Suppliers Form

The new UI delivers an improved layout for accessing all aspects of a supplier's setup, providing a clear distinction between the supplier's company details and the terms & controls that are used to manage the trading relationship. General and site level setup parameters is now available on a single page and work has been done to rationalize the organization of setup preferences across fewer sub-tabs to allow administrators quicker access to information. In addition, a new Quick Update page gives each administrator access to an initial summary page that can be personalized to suit the needs of their role.

New HTML Supplier Setup UI

For those companies that have enabled supplier access to their profile information through the Portal, the Supplier Profile Management tools have been integrated into the Setup UI pages, affording administrators a single view of a supplier's setup and any pending updates that have been provided by the supplier to the buying organization. The new Supplier UI also includes a Survey section that provides administrators with access to the results of questionnaires that were created using iSurvey and which the supplier had been asked to complete, either during self-registration or as part of profile maintenance through the Portal. Security controls are incorporated into the Setup UI so that companies can limit an administrator¶s access to specific tabs within the supplier setup. This feature is key for assisting companies to comply with the separation of duties elements of the Sarbanes-Oxley legislation. Document Styles
Document styles allow buying organizations to control the look and feel of the application to match the needs of different purchasing documents. Through reusable document styles, deploying organizations turn on or off various Oracle Purchasing features, thereby simplifying the user interface. When a purchasing document is created using a document style, disabled features are hidden to simplify the user interface. For example, organizations can create a document style for a specific commodity, such as temporary labor. This document style optimizes field labels and presentment for that commodity, simplifying purchase order entry by hiding regions/attributes that are only relevant for that commodity. In addition, document styles provide the ability to appropriately name purchasing documents to align more closely with the naming conventions of the deploying organization¶s business. In other words, the same purchasing document type (e.g. Standard Purchase Order) can assume different names based on the style applied. The following figure shows a style intended for authoring agreements and orders

to acquire facilities related services. The name assigned to Standard Purchase Orders using this style is µFacilities Maintenance Order¶. The name assigned to Blanket Purchase Agreements using this style is µFacilities Maintenance Contract¶. These names are exposed throughout the Work Center and also to the supplier.

Document Styles ± Various Settings Allow Companies to Control Look and Feel of User Interface

Note: The existing Oracle Purchasing forms for managing requisition demand and purchasing documents, including orders, agreements and releases, will still be available in Release 12.0. Also note that creation of the following documents will only be supported in the forms interface: ‡ Blanket Purchase Agreements and Releases (Work Center will only support authoring of Global Blanket Purchase Agreements) ‡ Planned Purchase Orders and Scheduled Releases


Procurement for Complex Services
Across Fortune 1000 companies, services-related procurement accounts for about 54% of procured total procurement spending. Outsourcing and globalization are the key drivers of this trend. Due to the increasing share of budget allocated to services, procurement organizations are increasingly being given responsibility to control services spend. Much of services spending go to complex services, such as outsourced high -value projects that require extensive collaboration between the buyer and supplier organizations. These complex services include consulting, advertising, construction, research and development, and professional services. These services require complex negotiated contracts that often include complex payment arrangements. These arrangements can include: ‡ Progress payments ‡ Advances and recoupment of advances ‡ Retainage and retainage release

Release 12.0 will support acquisition of complex services by allowing buyers to author, negotiate, execute and monitor complex contract payment arrangements like progress payments, advances and retainage. Please see the Services Procurement part of this RCD for more details.


Multi-Org Access Control (MOAC)
Multi-Org Access Control enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating units within a single applications responsibility. This increases the productivity of Shared Service Centers for users who no longer have to switch application responsibilities when processing transactions for multiple operating units at a time. Data security is still maintaine using security profiles that are defined for a list of operating units and determine the data access privileges for a user. In Release 12.0, Oracle Purchasing will leverage the new Multi-Org Access Control capabilities to support more streamlined operation of Shared Procurement Service Centers. Without changing Responsibility, and without closing windows, buyers will now be able to view consolidated requisition demand spanning multiple operating units. Using a single Responsibility, they will be able to manage demand (i.e. requisitions), conduct sourcing events, enter into agreements and issue purchase orders on behalf of any of the operating units that they serve. The operating units that they can transact on behalf of will be controlled by the security profile associated with their responsibilities. Similarly, receiving clerks will now be able to easily inquire about, plan for and receive expected shipments against purchase orders or requisitions or RMAs originating in multiple operating units without needing to close windows and change responsibilities.


E-Business Tax
Oracle E-Business Tax is a new infrastructure for tax knowledge management and delivery, using a global system architecture that is configurable and scalable for adding country specific tax content. As the single point solution for managing transaction-based tax, Oracle E-Business Tax will deliver tax services uniformly to Oracle E-Business Suite business flows through one application interface. Oracle E-Business Tax significantly enhances the current tax code/tax group based tax computation capabilities within the Procure to Pay business flow. For more information, please refer to the Oracle E-Business Tax section within the Oracle Financials RCD.


Communicate Document Attachments to Suppliers
Release 12.0 enables buyers to communicate all necessary document attachments to suppliers. Oracle Purchasing supports various types of file attachments (MS Word, Excel, PDF etc.) that can be appended to purchasing documents in addition to long and short text attachments. In previous releases, only text attachments were communicated to suppliers. With Release 12.0, buyers can communicate all necessary attachments to suppliers, including file attachments via email. When the system emails a purchase order to the supplier, the corresponding file attachments appear in a zip file attached to the email. System administrators can specify the maximum allowable size for this zip file to

minimize network traffic.


Oracle Supplier Network - Rapid Supplier Enablement
Oracle Supplier Network lets Oracle Purchasing customers leverage pre-defined connectivity to quickly enable electronic messaging with suppliers. The Oracle Supplier Network (OSN) provides a community of suppliers available for transaction integration, capable of sending and receiving XML documents, such as Purchase Orders and Invoices. The hosted network service eliminates the costly IT effort involved in building and maintaining direct connections with specific suppliers since each trading party only has to maintain a single connection with the OSN. This enables companies to drive machine-to-machine messaging down to a larger base of their repetitive suppliers with even less resources. Release 12.0 is certified with the OSN, which ensures that all R12.0 Purchasing and Payables¶ XML documents are fully supported for end-to-end message routing and transformation over the OSN. A quick start guide is provided to help buying organizations quickly connect R12.0 to the OSN.


Support for Contractor Purchasing Users
More and more companies are outsourcing part or all of their procurement processes in an effort to reduce costs and improve efficiencies. In keeping with this recent trend, Oracle Purchasing Release 12.0 introduces support for contingent workers in the procurement process. Authorized contingent Purchasing workers can raise requisitions, conduct negotiations, and create and maintain purchase orders.


Auto-Approval Tolerance for Change Orders
With Release 12.0, business users can use a web-based interface to define tolerances for auto-approval of document revisions.


Subledger Accounting for Budgetary Control Actions
In Release 12.0, Oracle Purchasing utilizes the new Subledger Architecture (SLA) for encumbrance accounting entries created for documents in Oracle Purchasing and Oracle iProcurement. These entries will be available for analysis and reporting with other SLA reports. Customers will also now be able to configure accounting annotations for their purchasing encumbrance accounting entries. Please see Subledger Accounting section of the Release 12.0 Oracle Financials RCD for more details.


Chargeable Subcontracting
The Japanese legal and business practice of Chargeable Subcontracting is a method of subcontracting assemblies from an OEM to one or more manufacturing partners. According to this method, the OEM ships and makes a provisional sale of component materials used to build the assembly at the manufacturing partner. When the assemblies are completed and returned to the OEM, the manufacturing partner bills the OEM for the gross price of the assembly. In order to provide support for the Chargeable Subcontracting business practices, the Pay on Receipt Auto-invoice program has been enhanced to create separate invoices for these items.

For more information, please refer to the Charegeable Subcontracting features within the Oracle Logistics RCD.


Support for Unified Process Manufacturing/Discrete Inventory
Release 12.0 of Oracle E-Business Suite merges the Oracle Process Inventory and Oracle Inventory applications into a single version of Oracle Inventory that manages inventory across the entire E-Business Suite. This single application supports Process characteristics such as dual units of measure, grade, child lots as a subdivision of lotcontrolled inventory, and the use of material status. This convergence removes the need for integration between Oracle Process Inventory and Oracle Purchasing. The process-enhanced Release 12.0 version of Oracle Inventory is the one source for all material management information. Oracle Process Quality for receiving inspection has been enhanced specifically to support Purchasing. Process users of Oracle Inventory can leverage all of the related functionality in Oracle Purchasing including:  Consigned and Vendor Managed Inventory  Cross Operating Unit Drop Shipments  Center-Led Procurement Flows  Warehouse Management System functions.


Dual Unit of Measure Control
In many industries, such as the meat, poultry, metals or chemicals industries, µcatch weight¶ is a term used to track inventory simultaneously in two different units of measure. To run their businesses, these industries need to know both the number of cases, bars or drums of product stored, as well as the weight or potency of that product. Prices are calculated based on the shipment weight of the product, not on the number of cases or units shipped. Oracle Inventory's Dual Unit of Measure Control enables users to transact inventory in two unrelated units of measure where the conversion between the measures vary from lot to lot or from one transaction to the next. The dual unit of measure support that had been available only for Oracle Process Manufacturing enabled organizations is now available for all Inventory organizations. Thus, if a user chooses to enable dual unit of measure control for a given inventory item, Oracle Receiving will now require quantity entry in two units of measure according to the defaulting rules set up at the item level.


Material Status Control
Quality Control and product lifecycle issues may require that certain material, although stored in a ready to use state in the warehouse or production facility, may not be usable for certain applications. A lot that has not yet passed inspection should not be shipped to a customer or consumed in production. A warehouse location that has been discovered to have erroneous inventory balances should not be included in available to promise calculations.

With this release, if material status control has been enabled for a given lot or serial controlled item, Oracle Receiving will now require quantity entry of the status for each new lot or serial received.


Sublot Control
Getting fast answers to questions such as the following may determine whether your company will survive a crisis:  Which lots were delivered to which customers?  Which other lots were produced from that production line during that shift?  What was the quality of the components or ingredients and which suppliers sent them? To enable better visibility to a lot and its genealogy and attributes, significant enhancements have been made to the lot tracking capabilities within Oracle Inventory. Sublot control allows users to track the parent lot from which multiple lots were created. The parent lot may refer to the production batch that spawned the lot, but if the output of that batch varied in term of grade or other QC attributes, multiple sublots could be received into inventory. Users can query lots in by their parent lot and view the parent lot in the lot genealogy form. Users can also now grade control their lot controlled items. With this release, if sublot control has been enabled for a given item, Oracle Receiving will now require quantity entry of the parent lot for each new lot received. For more information, please refer to the OPM Convergence features within the Oracle Logistics RCD.


Depot Repair Enhancements
Many business processes require receiving capabilities to complete a material movement flow. When receiving material based on business processes initiated in other forms, minimizing keystrokes is key to a great user experience. With this release, different applications, such as Depot Repair can invoke the receiving forms with the requisite data; such as requisition number and/or requisition line number and the system will directly show the results of the search criteria by completely bypassing the 'find' screen. For more information, please refer to the Depot Repair RCD Y en R12 (RUP2):


Integration between Oracle Purchasing and Oracle Transportation Management

Oracle E-Business Suite now integrates with Oracle Transportation Management to enable transportation features and functionality in existing Oracle E-Business Suite products, including Oracle Order Management, Oracle Shipping Execution, Oracle Payables, Oracle Warehouse Management, and Oracle Purchasing. Oracle Transportation Management combines transportation planning and execution with freight payment, inbound freight logistics, and freight rating and routing. Oracle Transportation Management adds the following features and enhancements to Oracle Purchasing:

y y y y y y y

Carrier selection and tender Freight rating and routing Actual ship quantities update and re-rate Freight payment, freight payment audit, and approval Visible in-transit statuses Inbound carrier selection Inbound in-transit statuses


iSetup APIs

This feature makes it easier for customers to move Setup data between EBS instances. iSetup automates the setup and management of setup data for Oracle EBS. The iSetup migrator moves setup data across multiple EBS instances. Each business entity supported by iSetup requires an API created by the owning product team to handle export and import of setup data.


Mejoras 11.5.10
Pricing Retroactive Price Changes
Prices for items on blanket agreements can change over the effective period of an agreement as a result of ongoing negotiations between the buyer and the supplier. In fact, it is common practice in certain industries to initiate and execute against an agreement with an interim price. A firm price may get finalized several months into the life of the agreement. In these scenarios it is possible that the updated price is applicable retroactively. Oracle Purchasing allows buyers to make price changes on Global Blanket Agreements and on Blanket Agreements. With 11.5.9, Oracle Purchasing allowed automatic updates to orders (Standard POs and Blanket Releases) referencing the modified agreements with the latest pricing as long as there was no receiving or invoicing activity against these orders. With this release Oracle Purchasing can optionally update prices on orders to reflect the latest agreement price, even if there has been receiving and invoicing activities against them. Additionally, for orders that have been received against, Oracle Purchasing automatically adjusts the accrued liability to reflect the latest pricing. Finally, for orders that have been invoiced, Oracle Purchasing automatically generates Price Adjustment Invoices in Oracle Payables. Depending on the nature of the change, the Payables department can then process either a payment or a Debit Memo request against the Price Adjustment Invoice. Price Update Flexibility on Purchase Orders, Releases
Users can now manually change prices on purchase orders or releases even if there have been receiving and invoicing activities against them. This greatly simplifies the procurement process for goods or services where pricing is volatile and changes often need to be made after the purchase order has been created and possibly even after a purchase order has been received or invoiced. Custom Pricing APIs
The Custom Pricing APIs can be used to complement the integration with Oracle

Advanced Pricing and can also be used with the Retroactive Price Changes feature. There are three new APIs supported in Oracle Purchasing: ‡ Custom Pricing Date API: Allows businesses to call custom logic (e.g, pl/sql code) to determine the pricing date for purchases. For example, a company can use this API to set the pricing date as the requisition approval date or the expected shipment date. ‡ Custom Requisition Pricing API: ‡ Custom PO/Release Pricing API: Allows businesses to add logic to adjust the price on standard purchase orders and releases based on referenced source documents.


Logistics Receiving Locator Support
Subinventory and locator functionality has been extended to the receiving dock allowing for an added level of granularity to receiving locations. It is now possible to specify receiving subinventories and locators on receiving transactions in addition to the receiving location, when importing these transactions via the open interface. This makes it easier to accurately track material on the receiving dock. Through integration with Oracle Inventory, receiving personnel now have access to the Inventory Material Workbench, providing a view of all the material contained in receiving sub-inventories and locators. Drop Ship Enhancements
The integrated business flow between Oracle Order Management and Oracle Purchasing facilitating Drop Shipments has been streamlined. Enhancements include: ‡ Improved Purchase Order Communication: Drop Ship Purchase Order information communicated to suppliers includes all relevant details about the end customer (customer name, ship-to contact, etc.). ‡ Automatic Document Synchronization: Customer requested changes to sales orders (for example, Order Cancellation, Quantity Increase, Date Changes) in Oracle Order management would now automatically flow down to the corresponding purchasing documents. This ensures that the Sales Order and the corresponding Purchase Order are always in sync, hence eliminating the need for manual data synchronization. Changes to the Sales Order are automatically captured as revisions to the corresponding Purchase Order. These changes can be automatically communicated to the supplier as a purchase order change. ‡ ASN Auto-generation of Receipt: Suppliers send Advanced Shipment Notices (ASN) to notify the purchasing organization that goods have been shipped to the customer. Buying organizations can now choose to automatically record receipt transactions against the supplier ASN. This receipt enables buying organizations to recognize liability and to optionally auto-generate the invoice as soon as the goods are shipped to the end customer. The receipt can also be used to automatically generate an invoice for the end customer in Oracle Accounts Receivable.


Accounting Category Based Account Defaulting in Oracle Purchasing

Account generation workflow logic has been enhanced to add category specificity to the default expense charge account on purchase orders or releases. Companies can call out segments that will carry category specific values in the multi-segment charge account structure. The account generator workflow has been enhanced to construct the expense account based on a combination of the employee default expense account and the category specific rules. Equivalent functionality for expense account defaulting onto requisitions in Oracle Purchasing has been available since Release 11.5.9. Selectively Un-reserve fund
Users can now relieve encumbrance at any level (Header, Line, Shipment, or Distribution) of the purchasing document from the entry forms (Enter Purchase Orders, Enter Releases, or Enter Requisitions). Import Grant Information
Companies can now import award information related to purchase order distributions via the Purchasing Documents Open Interface (PDOI). This eliminates the need for manual data entry when importing purchase order information from an external source. In addition, Oracle Purchasing now provides improved visibility into grant award information when grants are used as a source of funding on requisitions and purchase orders. Users can review grant award information on Purchase Order and Requisition Distribution Summary screens.


Purchasing Documents Enhancements



The Purchasing Documents Open Interface (PDOI) currently supports importing of new blanket agreements, new standard purchase orders, and new lines on existing blanket agreements. With 11.5.10, you can add new lines and associated shipments to an existing standard purchase order. Similar to importing blanket agreements, you can specify that the new line should be brought in as µapproved¶, or you can import the new line as µincomplete¶ and then initiate the approval process. The standard purchase order will be revised and, upon approval, communicated to the supplier.


AutoCreate and Purchase Order Entry Usability
The following modifications were made to the AutoCreate and Enter Purchase Order windows in order to enhance buyer productivity: ‡ Increased size of AutoCreate window to display more requisition lines ‡ Increased size of Enter Purchase Order window to display more order lines ‡ Reduced pop up messages ‡ Provided µReassign Buyer¶ option in the AutoCreate window


Mejoras R12
Document Publishing Enhancements
Release 12.0 further enhances the 11i10 feature, which introduced the ability to generate purchasing documents in Adobe PDF format. Support for RTF and PDF layout templates

In Release 11i10, generation of purchasing documents in Adobe PDF format required organizations to create layout templates in the form of XSL-FO style sheets. With Release 12.0, organizations can also use RTF or PDF layout templates which require little training to configure and maintain. Publish Contracts using user specified layout
In order to comply with reporting requirements of regulatory bodies, organizations, especially in the public sector, need the ability to publish the contracts that they award in multiple formats as prescribed by these bodies. In Release 11i.10, Oracle Purchasing supported generating purchasing documents in Adobe PDF. Format for such documents were limited to a single layout template as configured in the Document Types Setup. Release12.0 enables buying organizations to easily publish documents on demand using any predefined layout template. To generate a document using a certain layout, organizations simply provide the layout name as a runtime parameter while submitting the µPO Output for Communication¶ concurrent program.

Publish Contract ± Additional parameters introduced in the concurrent parameter allowing selection of pre-defined Adobe PDF or RTF layout templates

One particular application of this feature is for public sector organizations to generate government forms (such as SF30, OF347 etc.).


Maintain Sourcing Rules/ASLs for Agreement Items
Release 12.0 streamlines enabling blanket agreements for automatic document sourcing in specific inventory organizations. Previous releases allowed buyers to instruct the system to automatically create sourcing rules, sourcing rule assignments and approved supplier list entries out of all blanket agreement lines during blanket agreement approval submission. The system would then automatically source of requisition demand for all inventory organizations within an operating unit Release 12.0 allows finer control of how blanket agreements are enabled for automatic document sourcing. Buyers can now choose to enable them only in specific inventory organizations. Thus, buyers can negotiate a blanket agreement to fulfill requisition demand for a subset of inventory organizations and enable the agreement for autosourcing only in those inventory organizations. To use a blanket agreement for autosourcing in a specific inventory org, the buyer simply submits a concurrent program specifying the inventory organization and the blanket agreement number as runtime parameters.


Compliance to Packaging Constraints
Release 12.0 makes inventory replenishment more efficient and less expensive by applying supplier-packaging constraints to replenishment choices. Material replenishment recommendations from Inventory Planning systems are typically designed to maintain inventory levels to match predetermined policy guidelines. Such guidelines seldom take into consideration packaging lot sizes or minimum order quantity requirements of the supplier. Placing orders based on such requests without any review or adjustment may force the supplier to over or under-ship the order, or even reject the order. To reduce cost and time delays associated with administering such orders, Oracle Purchasing can automatically apply supplier-specific order modifiers, including fixed lot multiple and minimum order quantities to replenishment requests that originate in Inventory planning systems. These include Min-Max, Reorder Point and any requisitions imported from legacy systems via the open interface. Automatic application of such modifiers can be used both for requisitions sourced from external suppliers as well as those sourced from internal warehouse locations within the enterprise.


eAM Support for Services Procurement
Release 12.0 extends the support for Enterprise Asset Manager (eAM) to include fixed price services line types. Now requesters can associate maintenance Work Orders and Operation References for fixed price services requisition lines. The existing eAM integration for goods and amount based requisition lines is still supported.


Model Complex Pricing for Blanket Line Items
With Release 12.0, Oracle Purchasing extends the integration with Oracle Advanced Pricing to allow procurement professionals to model complex pricing rules for items listed on Global Blanket Agreements. Requisitions and orders sourced to these agreements can now leverage dynamic pricing formulas and/or modifiers defined in Oracle Advanced Pricing, in addition to the agreement line price and price breaks.


Advanced Approval Support for Requisitions
Release 12.0 of Oracle Purchasing further expands and enhances integration with the Oracle Approvals Management product for approval routing of purchase requisitions. This integration gives enterprises even more flexibility to configure their business approval processes. Key enhancements include: ‡ Position Hierarchy based Approvals Position based hierarchies allow organizations the flexibility to create reporting structures that remain stable regardless of personnel changes. Enterprises already using position hierarchies via Oracle Approval Management can immediately leverage those hierarchies for the requisition approvals process. ‡ Parallel Approvals The Parallel Approvals functionality gives enterprises the option to speed up the approvals process by routing a requisition to multiple approvers simultaneously. ‡ Support for FYI Notifications

Certain individuals or business roles need to be kept informed of purchases and decisions, but do not necessarily need to take action against that notification. Release 12.0 provides new functionality to allow certain individuals or roles to review the purchases, but do not require any response from the recipient.


New User Interface for Oracle Purchasing Setups
With Release 12.0, more user-friendly and intuitive web-based user interfaces will replace the following existing Oracle Purchasing setup forms.  Define Buyers  Define Approval Groups  Assign Approval Groups  Define Purchasing Options  Define Receiving Options  Define Line Types  Define Document Types  Control Purchasing Periods  Setup Expense Account Rules  Define Hazard Classes  Define UN Numbers  Define Quality Inspection Codes  Define Job and Category Association The new UIs will also leverage MOAC, making it easier for system administrators to perform setups in multiple operating units in the context of a single application responsibility.

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