ORACLE APPLICATIONS R12

Overview

On

Oracle Purchasing

Date : Place : kuala lumpurTime : By: Varaprasad

avaraprasad@gmail.com

Agenda

Introduction to Oracle Purchasing

Integration with other modules

Purchasing Documents

Suppliers

Approval groups/Approval Assignments

Receiving from Oracle Purchasing

Invoicing and Payments

Reports

Purchasing flow

Create RequisitionUser Depts initiate

requirements by creating Requisitions for

essential/expense Items through Core Apps or

Iprocurement.Requisitions can also be created

automatically from other sources like Inventory/WIP/MRP

etc.

Create RFQRFQ’s can either be created from Auto

create using Requisitions or created

manually.

Create QuotationYou can either create

Quotations manually or copy from a RFQ.

Approve Quotation

(quote analysis)

Create Purchase Order using Approved Quotations

for Supplier create andApprove the PO.

Receive the PO

into the Shipment

Organization

Match Invoice

against PO in AP and close

Over view of Oracle Purchasing Integration

Accounting

Payables

Purchasing/ iProcurement

Order Management

General Ledger

Inventory

Internal Requisitions

Requisitions

Items

Requisitions

Request ions are 2 types.

1.Manually created Requisitions (Purchase Requisitions)

These are used to Purchase from a supplier.

2.Internal Requisitions

Internal requisitions are created for creating Internal sales Order.

A Purchase Order can never be created using an Internal requisition.

Sources of Requisitions:

1. Manually Created Requisitions

2.Inventory created requisitions (through Min-Max, ROP, Replenishment, Kanban planning methods)

3. WIP created requisitions

4. Material planned created requisitions during planning(MS/MRP)

Requisition Lifecycle

Approve?

No

Submit for Approval

In Process

Approve?

Approved

Requisition Pool

RejectedReturn

Pre-Approved

Yes

No

Yes

Purchasedocument

Requisitions

RFQs and Quotations

Requisitionpool

Quotation

Manual

Print/Send RFQ

RFQ

Oracle Sourcingor iSupplier Portal

Supplierlists

Supplier

Request for Quotation

Enter RFQ

Suppliers fromsupplier list

Supplier 1

Supplier 2

Supplier 3

• Header information

– Doc. type, ship-to, bill-to

– Quote effective date

• Line information

– Quantity

– Unit of measure

– Target price

• Min/max quantities

• Terms and conditions

• Hazardous materials

• Price breaks or shipping schedules

RFQ Types

Catalog RFQ Used for high volume items for

which your supplier sends you

information automatically.

Standard

RFQ

Used for items you’ll inquire

about or need only once, or not

often.Bid RFQ Used for items that incur

transportation or other costs.

RFQ Structure

• Currency• Terms• Note to Supplier

• Item/Description• Category• UOM

• Qty/Price• Discount %• Effective Dates

• Qty/Price• Need By• Tolerances

• Type• Status• Due/Close Dates

RFQ Lines

RFQ Header

Price Breaks Shipments

Catalog/ Standard

Bid

RFQ

Quotation Types

Catalog

Quote

Used for high volume items for

which your supplier sends you

information automatically.

Standard

Quote

Used for items you’ll inquire about or

need only once, or not often.

Bid Quote Used for items that incur

transportation or other costs.

Quotation Structure

Quote Lines

Quote Header• Currency• Terms• Warning Delay

• Item/Description• Category• UOM

Price Breaks Shipments• Qty/Price• Discount %• Effective Dates

• Qty/Price• Need By• Tolerances

• Type• Status• Supplier/Site• Response Date

Catalog/ Standard

Bid

Quotation Approvals

Supplier 1 Supplier 2 Supplier 3 Supplier 4

ApproveSupplier 1

Item 1

Approve Supplier 1

Item 3

Approve Supplier 2

Entire quote

ApproveSupplier 3

Item 2

Quote repository

Quotation

Purchase Orders

Requisitionpool

Receive against PO Match invoices in Payables

Automatically create

Maintain documents

Accept Revise Control

PO

Manually create

Approve

Purchase Orders

There are 4 types of Purchase Orders

1.Standard Purchase Orders

A Standard PO is created when you know the Item, Price, Quantity, Delivery schedule

And Payment terms.

2.Planned Purchase Order

A Planned PO is created when you are not sure about Required delivery schedules.

You are sure about Item, Quantity, Price and payment terms.

A scheduled release is created against the Planned PO when you need the delivery.

Purchase Orders

3.Blanket Purchase Agreement

A BPA is created when you are not sure about Quantity, Price and Delivery schedules.

A Blanket release will be created against a Blanket Purchase Order.

The exact Quantity, Price and Delivery schedules will be informed to the supplier in the Blanket release.

4.Contract Purchase Agreement

A contract Purchase Agreement is created when you do not know even the Item to be purchased.

Only Information about Supplier, supplier site, Payment terms, and Agreement control details will be Mentioned in CPA.

A Standard Purchase Order is created against this CPA when something to be purchased.

Purchase Orders

Suppliers

PaymentPurchase

order

Supplier

Request for quote (RFQ)

Receipts

Purchaserequisition Quotation

Returns

Suppliers

Set up Suppliers to record information about individuals and companies you purchase

goods and services from. You can also enter employees as supplier when you reimburse for expense reports.

You must define a Supplier before performing most activities within Oracle Purchasing and Payables.

In Oracle Purchasing you can define a

Supplier list and also

Approved Supplier list

Sourcing Rules

Supplier B40 %

Rank 1

Supplier A60 %

Rank 1

Effective: 01-JAN-08 to 31-DEC-08

Supplier A100 % Rank 1

Effective: 01-JAN-09

Supplier C100 % Rank 2

Supplier C100 % Rank 2

Oracle Products That Use Sourcing Rules

Purchasing

Supply

Chain Planning

Planning

Supplier

Scheduling

Create a Sourcing Rule

Assignment

Supplier Scheduling

• Supplier A• Site• Contact

Sourcing Rule

Hard Drives

Supplier B40 %

Rank 1

Supplier A60 %

Rank 1

Item CM13139

Create a Sourcing Rule Assignment

Sourcing Rule

Hard Drives Assignment

Supplier Scheduling

Supplier B40 %

Rank 1

Supplier A60 %

Rank 1

Item CM13139

• Supplier A• Site• Contact

Suppliers

Suppliers

Suppliers

Approval Groups/Assignments

Oracle Purchasing uses Approval Hierarchy to approve the Purchasing documents automatically.

(I) An Approval group is created in which the Purchasing document total amount and account range will be described

(II) Approval assignment is adding the Approval group and the Document type which needs approval, to an employee.

In simple it is like mentioned below:

Job ------- Position----- Approval group ----- Document type.

Oracle Purchasing use this Hierarchy for Document Approvals.

Approval flow chart

Submit Document for

Approval

Check Approval Method

Look for Approval Group

Attached to Position

Check the Limits for the Approval

Group

Submitter canApprove

Approve Document

Forward to Next Position in Hierarchy

Look for PositionAttached

PO/REQ

YesNo

yes

Buyers

Use the Buyers window to define and maintain your buyers. Buyers can review

All requisitions using the Requisitions window, and only buyers can enter and

create purchasing documents.

You must be defined as a employee and your employee name should be

assigned to user.

Then only you can be defined as a Buyer.

Buyers

Receiving

Inventory

Order Entry

Internal shipment Inspect

Transfer

Shop floor

InventorySupplier

Shipment

Expense

Receive Deliver

Receiving

Receiving of the Material can be done Either from Inventory or from Oracle Purchasing.

Using Oracle Purchasing, you can process receipts from suppliers, receipts from other warehouses or inventory organizations, in-transit shipments and receipts due to customer returns.

Receipts are various types.

1.Normal Receipt with Receipt routing as

(A)Direct

(B)Standard

(c)Inspection required

Receiving

2.unordered Receipts

3.Cascading Receipts(cascading the shipments)

4.Express Receipts

After Receiving of material is performed the Information about the PO will be forwarded

To the Account Payables for Invoicing and Payments.

Receiving

Invoicing

Receiveinvoices

Enter invoice

File invoicesMaintain invoices

If appropriate, match invoiceto

purchase order

PO Invoice

Payments

Pay invoice

Record manualpayment

Confirm payment batch:• Confirm checks• Update invoice • Payment history

Create manualpayment outside

Payables

Create computer-generated payment

Format payments:• Print checks• Load EFT data

Modify payment batch: • Remove/add invoices• Modify payment details

Run paymentsin batch

Createsinglepayments

Select approved

invoice

Reports

Various reports available in Oracle Purchasing are:

1.Purchase Order Detail Report

This report can be used to review all, specific standard, or planned purchase orders. This is used for review the open purchase orders todetermine how much you still have to receive and how much your supplier has already billed you.

2. Printed Change Orders (Landscape) ReportThis report is used to print changed purchase orders in landscape format. Oracle Purchase provides a default format for the preprinted form.

3.Printed Change Orders (Portrait) ReportThis report can be used to provides the same information as the landscape version, but printed in portrait format.

4.Printed Purchase Orders (Landscape Report)This report can be used to print purchase orders in landscape format.Oracle Purchase provides a default format for the preprinted form.

Reports

5.Printed Purchase Orders (Portrait) ReportThis report contains the same information as the landscape version, but is printed in portrait format.

6.Blanket and Planned PO Status ReportThis report can be used to review purchase order transactions for blanket purchase agreements and planned purchase orders. Information will print for releases existing against the orders. If no release exists, only the purchase order header information is printed.

7.Contract Status ReportThis review the status of your contract and list purchase order information regarding each contract using this report.

8.Purchase Agreement Audit ReportThis report is used to review purchase order transactions for items normally required to buy using blanket purchase agreements. Oracle Purchase shows you when you purchased items using a standard purchase order that you could have purchased using a blanket purchase agreement.

Reports

9.Purchase Order and Releases Detail ReportThis report can be used to review detail information for your blanket purchase agreements and planned purchase orders. The quantity ordered, receive and billed and the quantity due to be received are displayed so you can monitor the status Purchase Order Commitment by Period Report

10.Open Purchase Orders Report (by Buyer)This report is used to review all or specific open purchase orders for specific buyers.

11.Open Purchase Order Report (by Cost Centre)This report can be used to review all or specific open purchase orders relating to order charged to one or more cost centre suing this report.

12.Purchasing Activity Register ReportThis report can be used to review purchase order monetary activity carried out for a time interval, such as a day or month.

13.Purchase Order Distribution Detail ReportThis report can be used to review account distribution for a purchase order.

THANK YOU