Suppliers

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 Procure to Pay Lifecycle
Requisitions
Catalog
Content
Management Purchase
Orders

Ordering
RFQs/ Receiving
Sourcing
Quotations
Invoice/
Analysis
Payment

Supplier
management Reporting

Supplier
Performance

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 Objectives

After completing this module, you should now be able

to do the following:
• Define suppliers and supplier sites
• Identify key reports
• Understand setup options
• Understand additional implementation
considerations

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 How Oracle Products Use
Supplier Information

Payables Assets

Purchasing Property
Manager

iSupplier MOAC
Portal

Trading Community
Architecture

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 Overview of Suppliers

Import/Enter
Enter supplier invoice Validate invoice

Pay invoice

Match to PO

Create PO

Create accounting
entries in Subledger
Enter requisition Accounting

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 Supplier Controls

Control supplier information using:

• Security
• Numbering
• Duplicate Supplier Entry
• Setup Options (defaults)
• Tax Defaults

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 Flow of Default Values
Procurement Flow Payables Flow
Financials options

Purchasing/Receiving /Payables/Payables System Setup options

Supplier

Supplier site

Invoice
Item 2
1 Invoice Lines

PO Documents
Distribution Scheduled
1 Takes precedence over 2 line payment line

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 Suppliers Page

• Search • Quick Update

• Company Profile • To Do List
– Organization • Terms and Control
– Tax Details – Accounting
– Address Book – Tax and Reporting
– Contact Directory – Purchasing
– Business Classification – Receiving
– Products and Services – Payment Details
– Banking Details – Invoice
– Surveys Management

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 Finding Suppliers

You can find suppliers by using the Search region of the

Suppliers page.

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 Supplier Quick Update

You can use Quick Update for routine maintenance of

supplier information.

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 Entering Basic Supplier
Information

Standard supplier • Supplier Type

• Name Stevens and Co

• Number 46018

• Taxpayer ID or
FEIN 52-1234567
• Tax Registration Number

• Inactive On 01-AUG-2010

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 Supplier – Organization

• Parent Supplier Name

– Must already be defined to select
• Number Parent

– Parent supplier number

• Customer Number
Child Child
Your
Your Supplier
Company Cust.
#9924

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 Supplier – Tax Details

• Rounding Rule
• Set Invoice Values as Tax Inclusive
• Allow Withholding Tax
• Withholding Tax Group
• Tax Registrations

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Supplier – Address Book and Contact Directory

Supplier

Tokyo Paris New York

Purchasing site Purchasing site Payment site

RFQ Only site Primary Pay site

Sue Taylor, Bill Wilson, Liz Miller, Aaron Carr,

Sales Mgr Sales Quotes Sales Rep AR Mgr

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 Supplier – Business Classification

Name Type
Hal’s Supplies Office Supplies
Adams for Board Donations

Minority-Owned

Woman Owned Small Business

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 Suppliers – Products and Services

Computer/ Manufacturing
Technical

Financial

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 Supplier – Banking Details

• Name
• Number
• Primary
• Currency
• Start/End Dates
Operating Account
#432198-77

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 Suppliers – Surveys

Create custom questionnaires that can be used to gather

feedback from suppliers' surveys

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 Supplier – Accounting

Supplier accounting values default to all new supplier sites

you enter for the supplier. Supplier site accounting values
default to all new invoices for the supplier site. You can
override any accounting defaults during supplier site entry
and invoice entry.

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 Supplier – Tax and Reporting

• Allow Tax Applicability

• Set for Self Assessment/Reverse Charge
• Allow Offset Taxes
• Tax Classification Code
• Income Tax Reporting Site

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 Supplier – Purchasing

• All New Orders

• Ship-To Location
• Bill-To Location
• Ship Via
• Pay On Receipt
• Alternate Pay Site
• Invoice Summary Level
• Create Debit Memo from RTS Transaction *
• Gapless Invoice Numbering
• Free-on-Board (FOB)
• Freight Terms
• Transportation Arranged
Poor Quality
• Country of Origin

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 Supplier – Receiving

• Enforce Ship-To Location

• Receipt Routing
• Match Approval Level
• Quantity Received Tolerance
• Quantity Received Exception
• Days Early/Late Receipt Allowed
• Receipt Date Exception
• Allow Substitute Receipts
• Allow Unordered Receipts

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 Supplier Information – Payment Details

• Payment Method Check

Electronic
Outsourced Check
Wire

• Pay Each Document Alone

1 to 1
Invoice Check

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 Supplier – Invoice Management

• Invoice Details • Payment Terms

• Hold from Payment – Priority
– Terms
– Pay Date Basis
– Pay Group
– Always Take Discount
– Exclude Freight From
Discount
– Create Interest Invoice

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 Supplier Site Settings

ABC Corp. Sites Payment Terms Pay Date Basis Ship-To

Location

Tokyo Net 30 Due Tokyo Office

Paris 2/10, Net 30 Discount Headquarters

New York Net 30 Due Headquarters

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 Supplier Level Versus Site Level Entry

Tabbed Region Supplier Level Site Level

Organization Yes No
Tax Details Yes Yes
Address Book No Yes
Contact Directory Yes No
Business Classification Yes No
Products and Services Yes No
Bank Details Yes Yes
Surveys Yes No
Accounting No Yes
Tax and Reporting Yes Yes
Purchasing Yes Yes
Receiving Yes No
Payment Details Yes No
Invoice Management Yes Yes

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 Reviewing Suppliers

You can review suppliers in the Suppliers page.

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 Maintaining Supplier and Supplier Site
Information

• Changed values default only to new documents that

you subsequently create
• Where to make the change?

Net 30
Supplier 2/10, Net 30

Existing Site A Existing Site B New Site C

Net 30 Net 30 2/10, Net 30

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 Adjusting Suppliers:
Updating Supplier and Supplier Site Defaults

Remember that when you make changes to values that

default to Payables and Purchasing documents, the
changed value defaults only to new documents you
subsequently enter or create.

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 Adjusting Suppliers:
Updating Supplier Invoice Holds

Holds are controlled at the supplier site.

For example, if you have enabled the Hold All
Payments option for a supplier and supplier site, and
you disable the option for the supplier, but not the
supplier site, all unvalidated invoices for the supplier
site will remain held for payment.
Use the Quick Update or Invoice Management pages to
update the hold status.

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 Adjusting Suppliers:
Adding a New Supplier Site

Enter the Supplier Site and address information. The Site

Name will not appear on documents you send to the
supplier; it is for your reference when you select a supplier
site from a list of values during transaction entry.

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 Adjusting Suppliers:
Updating a Supplier’s Tax Status

In the Tax Details page, make any changes to the Taxpayer

ID or Tax Registration Number.
In the Tax and Reporting page, update the tax profile for
the supplier and supplier sites.

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 Approving Supplier Requests

Suppliers with iSupplier Portal accounts can request

updates to their supplier information. All supplier requests
must be approved before the supplier record is updated.

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 Avoiding Duplicate Suppliers

• Before setting up a new supplier, verify it doesn’t

already exist.
• System requires unique supplier names. Relies heavily
on strong naming conventions.
• Benefits of avoiding duplicate supplier entry

Example #1 Example #2

XYZ Inc. XYZ Inc The Sun Sun Inc Sun Co

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 Merging Suppliers

Run supplier Identify duplicate ABC ABC

audit report suppliers Corporation Corp

Merge suppliers

Maintain audit Review merge ABC

trail results Corporation

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 Data Example – Supplier Merge

Oracle Corporation Oracle Corp

Target/Correct Supplier Incorrect Supplier

Site Names Site Names

CA-REDWOOD merge CA-REDWOOD
IL-CHICAGO FL-ORLANDO
copy
VA-RESTON
FL-ORLANDO

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 Merging Suppliers

After you have merged suppliers, Payables automatically

prints the following reports:
• Purchase Order Header Updates Report
• Supplier Merge Report

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 Reports

Suppliers Report

Supplier Audit Report

Supplier Payment History

Supplier Paid Invoice History

Supplier Mailing Labels

Purchase Order Header Updates Report

Supplier Merge Report

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 Reports

Supplier Customer Netting Report

Supplier Open Balance Letter

Invalid PO Supplier Notice

Accounts Payable Trial Balance Report

Invoice Aging Report

Open Items Revaluation Report

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 Financials Options

Supplier-Purchasing

RFQ Only Site

Ship-To Location
Bill-To Location
Inventory
Organization
Ship VIA
FOB
Freight Terms

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Financials Options

Human Resources

Expense
Reimbursement
Address

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 Payables System Setup

Supplier

Supplier Number Payment

•Entry •Invoice Currency
•Type •Pay Group
•Next Automatic Number •Terms Date Basis
•Pay Date Basis
Control
•Payment Terms
•Invoice Match Option
•Always Take Discount
•Hold Unmatched Invoices
•Create Interest Invoices

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 Lookup Codes

VENDOR TYPE

MINORITY GROUP

PAY GROUP

FREIGHT TERMS

SHIP_VIA

FOB

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 Profile Options

PO: Secondary E-mail Address

PO: In File Path

PO: Terms and Conditions File Name

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 Additional Implementation Considerations
Responsibility for Supplier Entry/Maintenance

• Assign responsibility for supplier entry/maintenance

• Number of staff required
• Consider good internal control and segregation
of duties

2 Payables Clerks 1 PO Clerk

Create/adjust Add purchasing

suppliers contacts

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 Additional Implementation Considerations -
Supplier Naming Conventions

• Benefits
– Prevent duplicate invoices and payments
– Improve system performance and supplier inquiries
– Provide accurate supplier reporting
• Who should develop the naming conventions?
• Document with sign-off by authorized approver(s)

Purchasing Payables Assets Others

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 Additional Implementation Considerations -
Supplier Naming Convention Examples

Examples
• Exact spelling decided for easily
misspelled suppliers
• Exact spelling for top ten priority suppliers
• Determine use of case (CAPS, Title Case)
• List approved abbreviations
• Determine use of punctuation and
special characters
• Site name structure
• Address format

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 Additional Implementation Considerations -
Supplier Numbering Options

• Two choices
– Automatic (numbers only)
– Manual (alphanumeric or numeric)
• Switch from manual to automatic
– Ensure that Next Automatic Number is larger than
the largest number assigned

Automatic Manual
2114 EE103
2115 GV104

2116 ST105
2117 ST106

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 Additional Implementation Considerations -
Supplier Open Interface

You can use the Supplier, Supplier Site and Supplier

Contacts Open Interfaces to import supplier information
into Payables

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Additional Implementation Considerations Setup
of Fax or E-Mail

Options for Communicating Approved Purchasing

Documents to Suppliers

Printed Document Facsimile E-Mail

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 Summary

In this module, you should have learned how to:

• Define suppliers and supplier sites
• Identify key reports
• Understand setup options
• Understand additional implementation
considerations

Copyright © 2007, Oracle. All rights reserved.