Commodity Sourcing in Oracle Purchasing

Presented to OAUG February 25th, 2010

The information in this document/presentation is the confidential information and trade secret of ATCO I-Tek and may not be disclosed to any person without the prior written permission of an authorized representative of ATCO I-Tek. © 2010 ATCO I-Tek Inc. All Rights Reserved

Commodity Sourcing Overview
This presentation will review:

Benefits of Commodity Sourcing in Oracle
Process Considerations Set up of Commodity Sourcing Creation of Requisitions using Commodity Sourcing

  

© 2010 ATCO I-Tek Inc. All Rights Reserved

Benefits of Commodity Sourcing

Common and frequently used services can be automatically sourced Multiple suppliers can be used
 

same type of service

different rates

 

Does not require Oracle Inventory Does not require an Item Master

Process is similar to item sourcing

© 2010 ATCO I-Tek Inc. All Rights Reserved

Process Considerations  Commodity sourcing for services requires a unique category established for each and every commodity you wish to source The line description of the Commodity on the purchase requisition must exactly match the line description on the Blanket Purchase Order Item sourcing take precedence over Commodity sourcing   © 2010 ATCO I-Tek Inc. All Rights Reserved .

All Rights Reserved .Setting Up Commodity Sourcing  First create new categories specifically for commodity service sourcing Commodity service categories must be unique Ensure that the commodity category is NOT currently being used by any purchase item   © 2010 ATCO I-Tek Inc.

All Rights Reserved .Setting Up Commodity Sourcing  Create a Blanket Purchase Order for the services/commodities using the new category © 2010 ATCO I-Tek Inc.

All Rights Reserved .Setting Up Commodity Sourcing  Set up a sourcing rule for the specific commodity © 2010 ATCO I-Tek Inc.

All Rights Reserved .Setting Up Commodity Sourcing  Assign the sourcing rule to the category © 2010 ATCO I-Tek Inc.

All Rights Reserved .Setting Up Commodity Sourcing  Set up the Approved Supplier List for the commodity © 2010 ATCO I-Tek Inc.

set up one Supplier Item Attribute line for each unique Blanket Purchase Order © 2010 ATCO I-Tek Inc. All Rights Reserved .Setting Up Commodity Sourcing  From the Approved Supplier List. via the Supplier Attributes button.

Setting Up Commodity Sourcing  If more than one category is required on the Purchase Order. you must set up the Approved Supplier List for each category Additional suppliers can be added to that category on the Approved Supplier List providing a unique Blanket Purchase Order is set up for each supplier  © 2010 ATCO I-Tek Inc. All Rights Reserved .

All Rights Reserved .Commodity Sourcing .iProcurement  In Oracle iProcurement select the Advanced Search option © 2010 ATCO I-Tek Inc.

Commodity Sourcing .iProcurement  Search for the Supplier Name and select Go  Can search on category. All Rights Reserved . but must also search on one of the top 3 fields © 2010 ATCO I-Tek Inc.

iProcurement  A list of the relevant Blanket Purchase Order lines is displayed © 2010 ATCO I-Tek Inc. All Rights Reserved .Commodity Sourcing .

All Rights Reserved .iProcurement  Confirm the Contract Number Field on the iProcurement screen – the Contract Number represents the Purchase Order number © 2010 ATCO I-Tek Inc.Commodity Sourcing .

Commodity Sourcing . All Rights Reserved .iProcurement  Select all required lines you wish to request Complete and submit the requisition for approval   Run the Oracle ‘Create Releases’ concurrent request Run the ‘Workflow Background Process’ request  © 2010 ATCO I-Tek Inc.

or Purchase Order is Incomplete waiting for submission to be approved.Commodity Sourcing . one of the following will occur:  Requisition is waiting in Autocreate to be processed onto a Purchase Order. All Rights Reserved .iProcurement Depending on the Release Method selected on the Approved Supplier list. or Requisition should now be sourced and available on a Purchase Order release   © 2010 ATCO I-Tek Inc.

navigate to Requisitions > Requisitions screen to create a Requisition Select Purchase Requisition for the Type  © 2010 ATCO I-Tek Inc.Commodity Sourcing . All Rights Reserved .Core Purchasing  In Oracle.

Commodity Sourcing . All Rights Reserved .Core Purchasing  Place the cursor anywhere on the first line of the requisition © 2010 ATCO I-Tek Inc.

Core Purchasing  Select the Catalog button © 2010 ATCO I-Tek Inc. All Rights Reserved .Commodity Sourcing .

Core Purchasing  On the ‘Search Supplier Item Catalog’ form there are various ways to find the commodity you wish to source Select the Clear button to refresh the search options – this clears out any defaulted entries  © 2010 ATCO I-Tek Inc. All Rights Reserved .Commodity Sourcing .

select the Find button © 2010 ATCO I-Tek Inc. All Rights Reserved .Core Purchasing  Enter one or more of the following on the Search Supplier Item Catalog form:  In the Commodity field. enter the category to be sourced   Enter the supplier name in the Supplier Field Upon completion.Commodity Sourcing .

All Rights Reserved .Core Purchasing © 2010 ATCO I-Tek Inc.Commodity Sourcing .

Commodity Sourcing .Core Purchasing  Select the ‘Negotiated Sources’ tab  TIP: The Profile option: ‘PO: Default Supplier Item Catalog Option’ controls which tab opens by default. The lines displayed are the sourced blanket line items for that supplier © 2010 ATCO I-Tek Inc. All Rights Reserved .

Core Purchasing  Select a line and select the Add button.Commodity Sourcing . This puts a line entry on the bottom half of the screen – repeat as required until all desired lines are added to the requisition © 2010 ATCO I-Tek Inc. All Rights Reserved .

Commodity Sourcing . All Rights Reserved .Core Purchasing  When all required lines have been added. choose the Select button to return to the requisition screen © 2010 ATCO I-Tek Inc.

Core Purchasing  Once back on the Requisition creation screen. All Rights Reserved .Commodity Sourcing . continue to create the requisition © 2010 ATCO I-Tek Inc.

All Rights Reserved .Commodity Sourcing .Core Purchasing  Complete and approve the requisition as per normal business process Run the Oracle ‘Create Releases’ concurrent request Run the ‘Workflow Background Process’ request   © 2010 ATCO I-Tek Inc.

Core Purchasing Depending on the Release Method selected on the Approved Supplier list. All Rights Reserved .Commodity Sourcing . one of the following will occur:  Requisition is waiting in Autocreate to be processed onto a Purchase Order. or Purchase Order is Incomplete waiting for submission to be approved. or   Requisition should now be sourced and available on a Purchase Order release © 2010 ATCO I-Tek Inc.

All Rights Reserved .Trouble shooting There are some common reasons why commodity sourcing is unsuccessful:  End Effective Date on the Blanket Purchase Order is expired Start Effective date on the Approved Supplier List is future dated Line description does not EXACTLY match the line description on the corresponding Blanket Purchase Order Create Releases or Workflow Background Process did not run or did not complete successfully    © 2010 ATCO I-Tek Inc.

lotz@atcoitek.Commodity Sourcing Questions? Dawn-Marie Lotz ATCO I-Tek Oracle Functional Analsyt (780)420-3406 dawn-marie. All Rights Reserved .com © 2010 ATCO I-Tek Inc.

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