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Oracle Purchasing

Oracle Purchasing allows organizations to acquire goods and services from suppliers. It processes requisitions, purchase orders, receipts, and other procurement documents. Key components include requisitions to request items, purchase orders to communicate with suppliers, and the receipt process to receive ordered items into inventory. It provides features for supplier and agreement management, purchase order approval workflows, and tools to track document status and history.

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213 views

Oracle Purchasing

Oracle Purchasing allows organizations to acquire goods and services from suppliers. It processes requisitions, purchase orders, receipts, and other procurement documents. Key components include requisitions to request items, purchase orders to communicate with suppliers, and the receipt process to receive ordered items into inventory. It provides features for supplier and agreement management, purchase order approval workflows, and tools to track document status and history.

Uploaded by

sourabhparande
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Oracle Purchasing

Topics of Discussion

Overview
Oracle Purchasing Documents
Oracle Purchasing Setups
BWC Overview
PO Creation
Receipt Process
PO Communication
Overview

Oracle Purchasing refers to acquiring goods or services to accomplish


the goals of the Organization.

It is a comprehensive procurement solution designed to:


Help purchasing professionals reduce administration costs, improves
management of your supply base, and adapts to virtually any
procurement process
Process requisitions, purchase orders, requests for quotation, and
receipts quickly and efficiently.
Oracle Purchasing Documents
Requisition

Two types-

Purchase-
Created against external suppliers
Receipt against PO

Internal
Supplier Internally
Against Internal Sales Orders
Ship against ISO
Receive against IR
Sources of PR

Inventory WIP Order Planning


management Engines Demand

Import/Reschedule
Requisitions

REQUISITION Manually Create

Approve

Purchase Order
Purchase Order

Represents finalization of sourcing and requisition processes


To establish the contact with supplier
Business need for goods and services is finalized
Types of PO

Standard Purchase Orders


for one-time purchase of various items. You create standard purchase orders when you
know the details of the goods or services you require, estimated costs, quantities, delivery
schedules, and accounting distributions.
Blanket Purchase Agreements
You create blanket purchase agreements when you know the detail of the goods or
services you plan to buy from a specific supplier in a period, but you do not yet know the
detail of your delivery schedules. You can use blanket purchase agreements to specify
negotiated prices for your items before actually purchasing them.
Contract Purchase Agreements
You create contract purchase agreements with your suppliers to agree on specific terms
and conditions without indicating the goods and services that you will be purchasing. You
can later issue standard purchase orders referencing your contracts, and you can
encumber these purchase orders if you use encumbrance accounting.
Planned Purchase Orders
A planned purchase order is a long-term agreement committing to buy
items or services from a single source. You must specify tentative
delivery schedules and all details for goods or services that you want to
buy, including charge account, quantities, and estimated cost.
PO Creation
PO Creation

Manual PO creation
Converted from PR-
ARC
Auto-create via Document Builder
Setups in Purchasing
Sourcing Rules-
To default the supplier and site on the Requisition
Sourcing Assignment
Purchasing Periods
ASL Setup

Automated rules setup in order to procure goods or services


Maintains the linkage of items/services with suppliers and BPAs
ASL setup
Buyer setup
Setup->Personnel->buyers
Position Hierarchy
Approval Groups
Approval Group Assignment

You must first use the Approval Groups window to establish rules for your approval groups.
Then you can assign approval groups to positions in this window.

To assign approval groups


Navigate to the Assign Approval Groups window.
Select the Operating Unit for this approval group assignment.
Enter the Position for which you want to assign approval groups and approval functions. If
the Use Approval Hierarchies option in the Financial Options window is not enabled, this
field is not applicable.
Select the approval function you want to assign to this position or job.
Enter the approval group that you want to assign to the selected position or job. The list of
values includes only enabled approval groups with at least one approval rule.
Enter the Start Date and End Date for the assignment.
Purchasing Options

The default values and controls for functions throughout Purchasing.


Specific categories of options:
Document Control
Define control options, such as the receipt close point. Mostly for Requisitions
Document Defaults
Define default options, such as the minimum release amount., BPAs and Requisition
Import
Receipt Accounting
Define the accrual method and the accounts which Purchasing will use as for receipt
accounting.
Document Numbering
Define the numbering method, numbering type, and next number for each of your
documents. Automation of PO number
Receiving Options
Enter the maximum acceptable number of Days Early and Days Late for receipts.

Enter the Action for receipt date control - Determines how Purchasing handles receipts that are earlier or
later than the allowed number of days selected above. Choose one of the following options:

None - Receipts may exceed the allowed days early or late.

Reject - Purchasing does not permit receipts outside the selected number of days early or late.

Warning - Purchasing displays a warning message but permits receipts outside the selected
number of days early or late.

Purchasing displays the Last Accept Date, which is the last date when the shipment can be received.
This is the promised date plus the number of days late allowed.

Enter the maximum acceptable over-receipt Tolerance percent.

Enter the Action for Overreceipt Quantity control. This field determines how Purchasing handles receipts
that exceed the quantity received tolerance. Choose one of the following options:

None - Receipts may exceed the selected tolerance.

Reject - Purchasing does not permit receipts that exceed the selected tolerance.

Warning - Purchasing displays a warning message but permits receipts that exceed the selected
tolerance.
Select Allow Substitute Receipts to indicate that receivers can receive substitute items in
place of ordered items. You must define substitute items before you can receive them. See:
Defining Item Relationships, Oracle Inventory User's Guide
Enter the default Receipt Routing that you assign goods: Direct Delivery, Inspection
Required, or Standard Receipt. You can override this routing during receipt by changing the
destination type, if the RCV: Allow Routing Override user profile option is enabled.
Enter the Enforce Ship To location option to determine whether the receiving location must
be the same as the ship-to location:
None - The receiving location may differ from the ship-to location.
Reject - Purchasing does not permit receipts when the receiving location differs from
the ship-to location.
Warning - Purchasing displays a warning message but permits receipts when the
receiving location differs from the ship-to location.
Receiving Tolerances- to determine the action to be taken if quantity received <>
Qty ordered
Cascade receipts- Distribution of quantity of an item from one supplier across
multiple shipments
Express receipts- Quick way of entering receipts and receiving transactions
Unordered Receipts- Receipt from supplier if no PO
Substitute Receipts- Receive any other item which is declared as substitute for
the item ordered on PO.
BWC
Dashboard to cater all the requirements of a buyer

Following features-
Manage Suppliers
Manage Requisitions
Manage POs
Manage Agreements
Suppliers

Supplier sites Purchasing enabled site, payment site


Ship to & bill to
Supplier contacts
Agreements
Buy Price Basis

LIST
DBP
SSP
CSP
Price Breaks-
Orders Screen
PO Header
PO Line
PO Shipment
Shipment Status

Open
Closed
Closed for receiving
Closed for invoicing
PO Distribution

Enter the Destination type to indicate the final destination of the


purchased items:
Expense - The goods are delivered to the requestor at an expense location.
The destination subinventory is not applicable.
Inventory - The goods are received into inventory upon delivery.
Demand Workbench
Requisition Views

User can click on Personalize button to create his own view.


PO Authorization status

Approved
Pre-Approved- It is an intermediate status in Oracle PO workflow, before
making the status to approved. This happens when workflow of PO
approval is stuck or waiting for any action from buyer due to any reason -
then status is set to pre-approved.
In-Process
Requires Reapproval
Rejected
PO Approval

Validations-
Mandatory fields should not be left blank-
BPB on PO line
Quantity should match at PO line and schedule level
PO cant be approved if BPB is LIST
PO Approval WF
The PO getting stuck in the approval workflow and not getting approved.
Please look for the following reasons and take appropriate actions-
A) i) Supplier site is not an active and valid purchasing site :- This issue
comes when the site is not purchasing enabled.
ii) Approval failed as BPA has expired: - Open the PO and click on
Update button > click on PO line details (the pencil icon) > remove the
BPA from section Source Document. Now click on Apply button. And
then Save and submit.
iii) Approval failed as BPA quantity has become negative: - Remove the
BPA Reference from the PO line and Click on Apply button. And then
Save and submit.
Supplier contact end dated
PO Change History
PO Audit Trail
ASN

Source-
Manually from Unity ASN Creation Screen
WEB ADI upload
B2B/EDI
Only for Open Schedule quantity
PO Communication
PO Communication

You can communicate purchase orders to the supplier at the


time you approve them.

Communication methods-
Email
Buyer
FAX
B2B/EDI
Autoexcel
PO Comm UDP
Manual Receipt Process
Receipts

Standard Receipt- Received into receiving locations and then delivered


into final locations like inventory, shop floor etc. Receiving and delivery in
different locations
Direct receipt- Directly into final destination. Receiving and delivery in
same location
Inspection required to ensure goods meet the quality standards. Goods
received and inspected before delivery
Receiving Transaction
Thankyou !

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