ORACLE APPLICATIONS R12

Overview
On

Oracle Purchasing

Date :
Place : kuala lumpur
Time : By: Varaprasad
[email protected]
 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 Requisition
User Depts initiate Create RFQ
requirements by creating RFQ’s can either be
Requisitions for Create Quotation
created from Auto
essential/expense Items You can either create
create using
through Core Apps or Quotations manually or copy
Requisitions or created
Iprocurement. from a RFQ.
manually.
Requisitions can also be created
automatically from other
sources like Inventory/WIP/MRP
etc.

Receive the Create Purchase Order Approve

Match PO using Approved Quotations Quotation
Invoice into the for Supplier create and (quote
against PO in Shipment Approve the PO. analysis)
AP and close Organization
 Over view of Oracle Purchasing Integration


General Ledger

Accounting
Payables

Requisitions Order
Items Inventory Management
Purchasing/
iProcurement Internal Requisitions
 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

Submit for Approval

In Process

No
Return Rejected Approve?
Yes
Pre-Approved

No
Approve?

Yes
Approved
Purchase
Requisition Pool document
Requisitions
 RFQs and Quotations

Requisition Supplier
pool

Print/Send RFQ
Manual
Quotation
RFQ

Supplier
lists
Oracle Sourcing
or iSupplier Portal
 Request for Quotation

Suppliers from
supplier list
• Header information
Supplier 1
– Doc. type, ship-to, bill-to
– Quote effective date
• Line information
– Quantity
Supplier 2
– Unit of measure
– Target price
Enter
• Min/max quantities
RFQ
• Terms and conditions Supplier 3
• 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 Used for items you’ll inquire

RFQ about or need only once, or not
often.
Bid RFQ Used for items that incur
transportation or other costs.
 RFQ Structure

• Type • Currency
• Status RFQ Header • Terms
• Due/Close Dates • Note to Supplier

• Item/Description
RFQ Lines • Category
• UOM

• Qty/Price • Qty/Price
• Discount % Price Breaks Shipments • Need By
• Effective Dates • Tolerances

Catalog/ Bid
Standard
RFQ
 Quotation Types

Catalog Used for high volume items for

Quote which your supplier sends you
information automatically.

Standard Used for items you’ll inquire about or

Quote need only once, or not often.

Bid Quote Used for items that incur

transportation or other costs.
 
Quotation Structure

• Type • Currency
• Status Quote Header • Terms
• Supplier/Site • Warning Delay
• Response Date
• Item/Description
Quote Lines • Category
• UOM

• Qty/Price • Qty/Price
• Discount % Price Breaks Shipments • Need By
• Effective • Tolerances
Dates
Catalog/ Bid
Standard
 
Quotation Approvals

Supplier 1 Supplier 2 Supplier 3 Supplier 4

Quote repository

Approve Approve Approve Approve

Supplier 1 Supplier 1 Supplier 2 Supplier 3
Item 1 Item 3 Entire quote Item 2
Quotation
 Purchase Orders

Approve

Manually create Automatically create

PO
Requisition
Maintain documents pool

Accept Revise Control

Receive against PO Match invoices in

Payables
 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

Purchase Request for quote

requisition (RFQ) Quotation

Supplier

Purchase
order Receipts Returns Payment
 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

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

Supplier A Supplier B Supplier C

60 % 40 % 100 %
Rank 1 Rank 1 Rank 2

Effective: 01-JAN-09

Supplier A Supplier C
100 % 100 %
Rank 1 Rank 2
Oracle Products That Use Sourcing Rules

Planning
Purchasing

Supplier
Supply Scheduling

Chain Planning
 Create a Sourcing Rule

Sourcing Rule
Hard Drives Assignment
Supplier Scheduling

Supplier A
60 %
Rank 1

Item CM13139

• Supplier A
• Site
Supplier B
• Contact
40 %
Rank 1
 Create a Sourcing Rule Assignment

Sourcing Rule
Hard Drives Assignment
Supplier Scheduling

Supplier A
60 %
Rank 1

Item CM13139

• Supplier A
• Site
Supplier B
• Contact
40 %
Rank 1
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 PO/REQ Look for

Document for Approval Group
Approval Attached to
Position

Check Check the Limits

Approval for the Approval
Method Group
yes

Look for Position Submitter can

Attached Approve
No
Yes
Forward to Next
Position in Approve
Hierarchy Document
 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

Shipment

Supplier Transfer Inventory

Receive Deliver
Shop floor
Order Entry

Internal
Inventory shipment Inspect Expense
 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

Receive If appropriate, match invoice

invoices to
purchase order

PO Invoice

Enter invoice

Maintain invoices File invoices

 Payments

Confirm payment batch:

Select • Confirm checks
approved • Update invoice
invoice • Payment history
Pay invoice
Format payments:
Record manual Run • Print checks
payment payments • Load EFT data
in batch
Create manual Modify payment batch:
payment outside Create • Remove/add invoices
Payables single • Modify payment details
payments
Create computer-
generated
payment
 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 to
determine how much you still have to receive and how much your supplier has
already billed you.

2. Printed Change Orders (Landscape) Report
This 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) Report
This 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) Report
This report contains the same information as the landscape version, but is printed
in portrait format.

6.Blanket and Planned PO Status Report
This 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 Report
This review the status of your contract and list purchase order information
regarding each contract using this report.

8.Purchase Agreement Audit Report
This 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 Report
This 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 Report
This 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 Report
This report can be used to review account distribution for a purchase order.
THANK YOU