LLIED BANK LIMITED TRAINING MANUAL- SOURCING

FOR ERP IMPLEMENTATION

Training Manual
Sourcing

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 LLIED BANK LIMITED TRAINING MANUAL- SOURCING
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Table of Contents:

Training of Oracle Sourcing is covered in the following sessions. At the end of these sessions the user will
be able to perform the following functions:

1 Enter a Request For Quotation...............................................................................................................4

1.1 Navigate to the RFQ window.............................................................................................................4
1.2 RFQ Header........................................................................................................................................6
1.3 Enter RFQ Lines................................................................................................................................12
1. 4 Negotiations Controls.....................................................................................................................14
1.5 Contract Terms................................................................................................................................16
1.6 Suppliers..........................................................................................................................................16
1.7 Create Negotiation: Review.............................................................................................................18
1.8 Submit For Approval........................................................................................................................19
2. Approve RFQ..........................................................................................................................................20
2.1 Open Notification............................................................................................................................20
2.2 Take Approval Action.......................................................................................................................22
3. Publishing the RFQ.................................................................................................................................23
4. Surrogate Quote....................................................................................................................................25
4.1 Create Quote: Header......................................................................................................................27
4.2 Create Quote: Lines.........................................................................................................................27
5. Close RFQ...............................................................................................................................................30
6. Quote Analysis:......................................................................................................................................32
6.1 Analyze By Quote.............................................................................................................................32
6.2 Analyze By Line:...............................................................................................................................33
6.3 Analyze By Spreadsheet:..................................................................................................................35
7. Award Quote.........................................................................................................................................36
8. Award Completion.................................................................................................................................38
9. Creation of PO.......................................................................................................................................39
9.1 Purchase Order Creation.................................................................................................................40
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10. Autocreation Of Sourcing RFQ.............................................................................................................42

10.1 Auto creation of Sourcing RFQ with Reference to PR....................................................................42

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1 Enter a Request For Quotation

Overview:
RFQs support the full business process to solicit quotes from suppliers. The suppliers' responses
to the RFQ allow the buyer to compare quotes and negotiate the best price and specifications
for the good or service. RFQs enable buyers to collect quotes from suppliers for complex and
hard-to-define items or services. Once suppliers have submitted an initial round of quotes,
buyers can review quotes and award the RFQ.

1.1 Navigate to the RFQ window

The Navigation Path to the Sourcing RFQ form is

Sourcing Responsibility  Sourcing Home Page

Click on “Sourcing Home Page” menu

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Upon clicking Sourcing Home Page function, Oracle Sourcing Home Page opens up. Click on Create RFQ.

The Create RFQ: Header page Opens upon clicking Create RFQ.

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1.2 RFQ Header

In Sourcing Negotiations page opens.

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The RFQ Header page has following different sections:

 General Header Information
 Collaboration Team
 Terms
 Requirements
 Additional Header Attributes
 Notes and Attachments

General Header Information:

 Title: Enter the title for this RFQ. You must specify a title for your negotiation and once
negotiation is published title can not be changed.
 Select Negotiation Style as Standard negotiation.
 Select Quote Style as Blind.
 Select Security Level as Public.
 Enter the description for the RFQ.
 Enter the outcome as Standard Purchase Order. The following options are available:
Blanket Purchase Agreement
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Contract Purchase Agreement

Complex Purchase Order

Collaboration Team:

In this functionality you can

 Make the member an approver of the sourcing document.
 Buyer can select if a member is an Approver by checking the box below “Approver”.
 Access can be set for team members:
Full: Can perform most activities. (Only the owner can publish, close early, extend,
create amendment)
Scoring: Members can contribute by scoring supplier responses.
View Only: Members can only view the negotiation.
 Define a particular task to perform and a target date.
 Notify: You can notify the selected members the information about negotiation.

Terms:

 Bill-To Address: Address to which your RFQ bills should be sent.

 Ship-to Address: Address to which RFQ items will be shipped.
 Payment Terms: Payment terms for your supplier.

Requirements:

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You can request information on supplier at the negotiation level by defining negotiation
requirement. Requirements can be external and internal. Requirements are questions that the
supplier should answer as part of supplier response.

Check box for Requirements and Click Add Section and enter a Section Name.

Click Apply and Add Requirement And:

 Create a question.

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Select Properties and Apply

Type describes how the Requirement is used within the negotiation.

Values can be:

 Display Only: The Requirement is displayed to the supplier.

 Internal: Internal Requirement can only be seen by buyers.
 Optional: Suppliers do not necessarily have to respond to this Requirement.
 Required: Suppliers must respond to this Requirement.

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An example of Section and Requirements added to the Requirement section of the header

Additional Header Attributes:

Enter Project number Relevant to the Purchase Order.

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Notes and Attachments:

Notes and attachments can be used to supply suppliers and internal user’s additional
information on this negotiation.

After entering the RFQ header information go to lines.

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1.3 Enter RFQ Lines

Negotiation Lines

Select Create Line from Actions drop down and click Go

The RFQ Line page has following different sections:

 Line Information
 Attribute
 Notes and Attachments

Line Information:

Select Create Line from the Action drop down list and Click Go.
The Create Lines Form Appears.
Enter data in all the required fields in Lines.

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 Line Type: Select Line Type as Goods.

 Quantity: The Quantity required.
 Start Price : The Price required for the item for which RFQ is being raised.
 Start/Target/Current price is optional.
 Ship-to Address: Address to which RFQ items will be shipped.

Attributes(Optional):

Attributes are used to describe the good or service being purchased. They identify
characteristics which will be negotiated on in addition to item price. To add attributes, click Add
Another Row.

Notes and Attachments:

Notes and attachments can be used to supply suppliers and internal user’s additional
information on this negotiation.

After entering line information click on Apply and the following form appears:

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Now go to Controls Tab On the Left Menu.

1. 4 Negotiations Controls

Update RFQ controls navigating to control Tab available on left side of screen as
highlighted.

The RFQ Controls page has following different sections:

Schedule
Response Rules

Schedule

 Preview Date: This is the date and time after which the negotiation information can be
accessed by potential supplier.
 Open Date: This is the date and time after which all eligible suppliers are allowed to
participate in negotiation.
 Close Date: This is the date and time when the negotiation will be closed. Once closed,
no further responses may be accepted

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 Award Date: This is the date when you anticipate announcing the winner of the
negotiation.

Response Rules

With the help of response rules, you can,

 Restrict to Invited Supplier

 Allow supplier to select the lines on which to respond.
 Display best price to supplier.
 Full quantity requirement
 Allow multiple responses
 Allow manual close before close date.
 Allow manual extend when the negotiation is open

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1.5 Contract Terms

After entering the Controls information go to Contract Terms.

 Here you can create contract terms and apply them to your negotiation.
 You can use contract terms to specify legal and other requirements for your negotiation.

Now navigate to suppliers tab.

1.6 Suppliers

Now enter Information in Supplier’s Tab

 Select how you wish to search for supplier

 Click Add Supplier to search for add suppliers to your invitation list.
 Click Add Invitation List to apply predefined list of suppliers.

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 From search results, select the supplier you wish to invite and click Add to Invited
Supplier. Selected suppliers appear in Invited Suppliers list in top right corner.
 If supplier or supplier contact not found, click on Register New Supplier.
 Once you have added all your suppliers, click apply, you return to Create Negotiation:
Suppliers page.
 If there are multiple supplier sites, select specific site, you wish to invite to the
negotiation.

For each supplier, ensure there is a value for Supplier Contact field.

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1.7 Create Negotiation: Review

After adding suppliers, click Review given at top right corner.

Create RFQ: Review page opens.

Once you defined your negotiation, you have the opportunity to review all information prior to
submitting it to approval or publishing it.

 After reviewing the RFQ you can view the Supplier Printable view and Buyer Printable
view.
 You can update the page by selecting the update button.

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1.8 Submit For Approval

Once you have reviewed your document and ensured that it is complete and correct, you can
submit it for Approval.
 Select Submit For Approval button at top right corner.

Page showing Submit For Approval RFQ appears.

The Approver’s name to whom the RFQ is submitted for Approval is shown.

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2. Approve RFQ
Only authorized user can take approval action on a RFQ. Approving a RFQ is a two steps process as
described below:

Steps Summary:

2.1 –Navigate to the Worklist Window

2.2 – Take approval action

2.1 Open Notification

The Navigation Path to the Notification Summary page is

Sourcing Responsibility  Worklist

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Click on “Worklist” to view all RFQs that have been submitted for approval. You can also view active
notifications on your worklist on the login page when you login to the application.

Open the required RFQ

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On clicking the “Worklist”, the above window will appear showing all the Open RFQ requiring Approval.

From this window, select the appropriate RFQ you want to approve.

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2.2 Take Approval Action

Take approval action on the basis of RFQ notification received by approving authority.

The RFQ appears in the Notification Panel of the Approver for Approval.
Select Approve.
Upon Approving the Notification Window will show a new message of RFQ Approved.

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3. Publishing the RFQ

Now Go to Sourcing Home Page

The approval status of the RFQ changes to Approved after Approval.

Now select Publish at top right corner to publish the RFQ to suppliers.

Page showing the confirmation of RFQ Published appears.

The status of the RFQ changes form Draft to Published.
The published RFQ appears in the Published Negotiations page.

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Now the RFQ can be seen under the region titled “PUBLISHED NEGOTIAITIONS”

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4. Surrogate Quote

Sometimes suppliers cannot place their responses online since they have no online access.
Oracle Sourcing buyers can place surrogate quotes on behalf of such suppliers. Once the buyer
has received all the quotes information, a surrogate quote can be entered into the negotiation.

Navigation: Sourcing Home PageNegotiationsActions Create Surrogate Quote

 In negotiations page, select the negotiation for which you want to enter the surrogate
quote.

 Select Create Surrogate Quote in Actions field, click Go.

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Create Surrogate Quote: Select Supplier and Contact page opens.

 Search the supplier for which you want to enter surrogate quote.

 Select the Supplier and click on Create Surrogate Quote.

Terms and conditions page appears. Before entering the quote one must accept the terms and
conditions.

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After accepting terms Create quote page appears.

The Create Quote Page has two tabs:
 Header
 Lines

4.1 Create Quote: Header

 Quote Received Time: This is the time when the buyer received quote from supplier. The
Quote Received Time must be before current date, after RFQ Open Date and before the
RFQ Close Date.
 Quote Valid: The date and time till when the quote will be valid. In ABL this field is
mandatory.

Select Lines Tab to enter lines details.

4.2 Create Quote: Lines

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 Quote Price: This is the price at which the supplier will supply the goods.
 Promised Date: This is the date on which the supplier will supply the goods.

Click on update in the lines tab to enter attribute information pertaining to the item required by
Sourcing Buyer.

After Entering Quote Value in the attributes tab click Apply.

Select Continue button in the Create Lines Form.

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Review and submit page opens.

Select Submit button.

The quote gets submitted and quote number is generated

.

Similarly, Enter all the quotes for all the suppliers and Submit them all.
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5. Close RFQ
After submitting the quotes from all suppliers, close the RFQ.

Navigation: Sourcing Home PageNegotiationsActions Close RFQ

Close RFQ page appears.

 Depending upon the requirement you can close the Negotiation Immediately or you can
enter new close date.
 Select Apply. The RFQ closes. You can not enter any more quotations.

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Status of RFQ is shown as Closed.

After closing RFQ you can Award the Quote. For awarding the quote there are two options:

 Award by Quote
 Award by Line.

An Approval process can be setup to send the quotations to the purchasing manager for
approval. He can analyze best options on the basis of different parameters that are available.

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6. Quote Analysis:

Navigation: Negotiations  Action  Analyze By Quote

Once the Quotes have been entered they can be Analyzed.

Oracle Sourcing provides 3 options:

 Analyze By Quote
 Analyze By Line
 Analyze By Spreadsheet

6.1 Analyze By Quote

Navigation: Negotiations  Action  Analyze By Quote

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The following form Appears giving Analysis By Quote

6.2 Analyze By Line:

Navigation: Negotiations  Action  Analyze By Line

The following form appears when Clicking on Analyze by Line

 Click on Analyze

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On clicking Analyze the following form appears giving further analysis of the Line by comparing
Qty and Price offered by Supplier’s.

 Click on Compare

The following window appears on clicking Compare.

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6.3 Analyze By Spreadsheet:

Navigation: Negotiations  Action  Analyze By Spreadsheet

The following form is opened when clicking on Analyze By Spreadsheet:

Click on Export without changing the Default Options for Format and Quote.

The Save “Dialog Box” Pops up upon clicking Export.

Save the file and the Spreadsheet can then be viewed for comparison of Quotes

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7. Award Quote

Navigation: Negotiations  Action  Award by Quote

Award by Quote window appears.

 Select the supplier to whom you want to award the quote.

 If you want to award different items to different suppliers then chose Award Multiple
lines
 Select Award button.

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Award Quote page opens.

 Select Award checkbox as highlighted to award the quote.

 Select Save Award in Actions field, Click Go.

Award confirmation page appears. Status of quote changes to Award In Progress.

After awarding the quote you have to Complete Award.

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8. Award Completion

Navigation: Negotiations  Action  Complete Award

 Select Complete Award and click Go.

The following form appears on Clicking Go.

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9. Creation of PO

Award is completed and you have two options to select before submitting it.

 Create Standard Purchase Order checkbox is selected by default.

 You can also Share award decision with suppliers by selecting this option.

After selecting the options select Submit.

RFQ Award Completion confirmation page appears.

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9.1 Purchase Order Creation

After Submit button, Status changes to Completed. Purchase Order is created. Purchase order
summary page opens. The Purchase Order Number is generated.

 Created Purchase Order can be in the Status of Either Approved or In Complete. It

depends upon option (Initiate Approval Check Box) we have selected at the time of
Complete Award.

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Now the Purchase Order is ready to send to Supplier and receive goods against it.
The created Purchase Order can be seen from the Purchase Order Summary Form

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10. Autocreation Of Sourcing RFQ:

AutoCreate allows you to select requisitions stored in Oracle Purchasing to create a Sourcing
RFQ.

Entering Requisitions:

Enter the Requisition as per Normal Procedure. The procedure for entering Requisitions has
been explained in Purchasing Training Manual.

10.1 Auto creation of Sourcing RFQ with Reference to PR

Sourcing RFQ can be created using the using the autoCreate functionality of the Oracle
Purchasing.

Menu Path
The Navigation Path for the Auto Create window is:

Purchasing Responsibility  Auto Create

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On clicking AutoCreate Find Requisition Lines window opens.

 Enter the search criteria, based on which you want to search the requisition lines.
 Select Find.

Autocreate Documents window opens with requisition lines that satisfy the search criteria.

 Select the requisition line by selecting the checkbox at extreme left.

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 Select Action as Create.

 Document Type as Sourcing RFQ.
 Select the Automatic button.
 After selecting Automatic button, a pop up window opens where you can select the
Negotiation Outcome of the sourcing RFQ.

 In Negotiation Outcome you have two options:

Standard Purchase Order.
Blanket Purchase Agreement.
 Select Create.

After selecting Create button on New Document, you will be automatically directed to the
Create RFQ: Header in Sourcing Responsibility.
The RFQ will then be created as per normal procedure.

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