defaulting rules in purchase orders and agreements

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 2

Oracle E-Business Suite Purchasing Defaulting Rules in Purchase Orders

and Agreements: For Better Configuration and Ease of Use

An Oracle White Paper April 2014


Defaulting Rules in Purchase Orders and

Agreements: For Better Configuration and Ease of Use

INTRODUCTION In todays business landscape, organizations adopt timely and fast execution of their acquisition-related operations. This helps to complete their procurement cycles efficiently. In order to be effective, a procurement business user needs to be supported by systems that provide real-time information. The system also ensures that procurement processes are effectively managed. In order to reduce Total Cost of Ownership (TCO), faster time-to-market and increased customer satisfaction, organizations attempt to get the most value out of their procurement systems.

Oracle Purchasing (part of the Oracle Procurement family) automates the entire purchasing lifecycle and supports a broad range of purchasing setup framework including defaulting rules, document styles and document types, account generation, autocreating purchase orders from requisitions, and more. Thus, users can track and automate their purchasing activities efficiently.

You can also map your business requirements to the system using the extensive setup framework that Oracle Purchasing supports for users and implementers.

You can standardize your purchasing processes by using the defaulting rules that Oracle Purchasing provides. Oracle Purchasing uses integral defaulting rules to enable users to get and use the most required purchase order information. In order to simplify purchase order creation,users and implementers can define a series of business rules to automatically default/derive values for the purchase order attributes. This helps to improve productivity (with shorter data entry cycles), Attribute defaulting also enables users to attain data and document consistency and alignment across the organization.

This white paper aims at providing insights into the value derivation used in purchase order, blanket purchase agreements for selected field values. This white paper enables customers, support, sales and development to gain an understanding about the defaulting of purchasing document field (attribute) and how document creation time and effort is minimized.

DERIVING ATTRIBUTE VALUES IN ORACLE PURCHASING Business users can specify varied sources for the value of the purchase order and agreement fields. For example, the Communication Method field derives its value first from the Communication Method field of an agreement. If there is no entered agreement in the order document, then the Communication Method field value is derived from the supplier site. The system uses a sequence to derive the value for the field from different sources. These derived values enable users to spend less time in purchase order or agreement creation. Thus, having derived values that default in purchase order or agreement attributes results in greater productivity and is less error-prone.

In order to simplify the process of creation of a

Purchase Order the users can define a series of

business rules and the value for these attributes

can automatically be derived/defaulted while the document is being created.

Hence this aids in improving productivity as well as

consistency and alignment across the organizations.


GUIDELINES FOR DEFAULTING IN PURCHASING DOCUMENTS The purchase order/agreement defaulting framework uses the following best practices (or standards):

1. The term From Source Document in the defaulting rules table refers to a Blanket Purchase Agreement (BPA) or Contract Purchase Agreement (CPA) or Quotation, as appropriate. Some definitions are as follows:

a. BPAs are agreements made with suppliers when goods or services are negotiated for a specified period without indicating exact delivery schedules.

b. CPAs are agreements made with suppliers to agree upon specific terms and conditions without specifying goods and services.

c. A quotation is sent by suppliers to the purchasing organization with the requested pricing and other information for item(s) or services.

Later purchase orders are created by referring above documents as a source document to default the values for some of the attributes. This simplifies the process of creation of a Purchase Order.

2. The following acronyms are used in the defaulting rules table:

BWC Buyer Work Center

PDOI Purchasing Document Open Interface

ASL Approved Supplier List

3. You can create Purchase Orders and Agreements in the following ways in Oracle Purchasing:

Create Purchase Orders/Agreements manually from Buyer Work Center (BWC).

AutoCreate Purchase Orders and Agreements from Requisition (Demand Workbench in Buyer Work Center).

Import Purchase Orders/Agreements using the Purchasing Document Open Interface (PDOI).This is used to create Purchase Orders/Agreements in bulk.

Use PO Create Document workflow to create purchase orders automatically from approved requisition lines. The PO Create Documents workflow performs the same tasks as AutoCreate does, except that it works without user intervention.

Use Webservices to create purchase orders and agreements.

Use Forms to create purchase orders and agreements.

Although there are different methods to create purchase orders and agreements, the defaulting rules remain the same, with the exception of some fields. Wherever there is a difference in behavior or profile introduced for a specific program (BWC, PDOI or AutoCreate), it is specified in the defaulting rules table.

4. If the defaulting takes place from Preferences Purchasing Defaults in the defaulting rules table, this defaulting behavior is only applicable to the manual creation of Purchase Orders and Agreements from Buyer Work Center (BWC) and is not applicable to PDOI, AutoCreate flows.

Referring Source document in purchase orders improves

compliance, eliminates manual interventions and

simplifies the order creation.


5. The defaulting sequence is in ascending order. Oracle Purchasing looks first for the option specified as 1 in the defaulting rule set. If there is no value available in the first rule, the system uses the next rule specified as 2. For example, while defaulting the currency of the purchase order at the header level, the value for the currency field is derived in the following sequence:

1. Source Document When a source document is referenced in the purchase order.

2. Supplier Site - When a source document is not referenced, the currency of the purchase order is derived from the supplier site.

3. Supplier - If no value is provided in the supplier site, the value defaults from the suppliers default currency and

4. General Ledger If no currency is defined in supplier, the currency defaults from the General Ledger (which is actually the functional currency).

6. When a purchase order is created with single or multiple requisitions that have different currencies, the Currency field defaults to the value found in the functional currency field of General Ledger. Note: Functional currency refers to the main currency used to do business transactions by organizations.

7. When a purchase order is created referencing multiple requisitions that have source document references, the source document details are defaulted only if it is same across all the requisition lines selected. For example, if the supplier is the same and the supplier site is different, the system defaults only the supplier and the buyer needs to enter supplier site in the purchase order.

8. In PDOI, user defined values (in the interface table) take precedence over all the defaulting rules in most of the cases.

9. This white paper describes the defaulting values for purchase order/agreement fields when these documents are created using Buyer Work Center, Purchasing Document Open Interface (PDOI), and AutoCreate. The defaulting rules described in this white paper do not cover the defaulting behavior of Forms based purchase order and agreement creation. There are chances that the defaulting behavior is different in Forms.

10. It is the buyers responsibility to negotiate orders/agreements with suppliers, drive compliance, track the performance of the suppliers, ensure risks are mitigated, and hedge price variances. In such situations, the buyer has the authority to override the defaulted value for the field while creating purchase orders.

11. The term From Referenced Requisition in the defaulting rules table refers to Purchase Orders/Agreement Created through Autocreate or PDOI having requisition reference.

Buyer has the authority to override the defaulted value

for the fields during PO creation.


LISTS OF ATTRIBUTES THAT HAVE DEFAULT VALUES PURCHASE ORDER HEADER

Attributes Defaulting Rules

Header Operating Unit

The operating unit that owns the transaction.

1. Multiple Organization Access Control (MOAC) is not enabled, and the Operating Unit value comes from the profile option MO: Operating Unit. This Operating Unit field value cannot be updated by users. 2. Multiple Organization Access Control (MOAC) is enabled, and the Operating Unit value comes from the profile option MO: Default Operating Unit. Users can overwrite this default value and select an operating unit that they have access to, as defined in the profile option MO: Security Profile. Note: One of the two profiles MO: Operating unit (OR) MO: Security profile has to be specified. If both MO: Operating unit and MO: Security profile are specified, MO: Security profile is considered and MO: Operating unit value is ignored.

Status

The stage the document has reached (Draft, Approved, etc).

BWC: 1. A new purchase order entered in BWC has a status of Incomplete. PDOI: Importing as a new Purchase Order: 1. A new purchase order has a status of Incomplete. 2. The value of the Status field is defaulted to Approved for a Consumption Advice. Note: Consumption Advice is a document similar to purchase order and is used for billing consigned material. It is a formal document used to communicate the quantity and value of the consigned material consumed in a warehouse to the supplier. Based on the Consumption Advice, the supplier creates the invoice. Importing to an existing Purchase Order: The status of the importing document and current document along with the final status of the current document is as follows. For example, if the status of the importing document is Incomplete, and the status of the current document is Approved, the final status of the current document is Requires Reapproval.

Status of the Importing Document

Status of the Current Document

Final Status of current document

Incomplete Incomplete Incomplete Incomplete Rejected Rejected Incomplete Approved Requires

Reapproval Approved Incomplete Incomplete

The term From Referenced Requisition in the defaulting

rules table refers to Purchase

Orders/Agreements Created through Autocreate or PDOI

having requisition reference.


Approved Rejected Rejected Approved Approved Approved Initiate Approval Incomplete Approved+ Initiate Approval Rejected Approved+ Initiate Approval Approved Approved+

Note: +Status Initiate Approval will launch the approval workflow background process. An approval authorization rule drives the status of the purchase order. Please note that an importing document with a Rejected status cannot be imported. AutoCreate: 1. A newly created purchase order will have a status of Incomplete. 2. The status of the autocreated purchase order remains Rejected or Incomplete when new lines are added to the existing purchase order. 3. The status of the autocreated purchase order changed to Requires Reapproval when new lines are added to the existing approved purchase order.

Supplier

The provider of goods and services for whom the purchase order is created.

1. From Source Document 2. From referenced requisition.(Not defaulted in PDOI) Note: When a purchase order is created referencing multiple requisitions that have source document references, the supplier is defaulted only if it is the same supplier across all the selected requisition lines.

Supplier Site

Suppliers business location from where goods or services are supplied

1. From Source Document 2. From referenced requisition. (Not defaulted in PDOI) Note: Defaulted only when one and only one valid supplier site for the Supplier is found. Note: When a purchase order is created referencing multiple requisitions that have source document references, the supplier site is defaulted only if it is the same supplier site for the same supplier across all the selected requisition lines.

Supplier Contact

Person responsible for supplying goods or services on behalf of the supplier organization.

1. From referenced requisition. Note: Defaulted only when one and only one active supplier contact for the Supplier Site is found.

Communication Method

The mode by which a specific communication is sent or received, that is, email, phone, fax, or letter.

1. EDI, if EDI is enabled. 2. XML, if XML is enabled. 3. From Supplier Site.

Currency 1. From Source Document


2. From Supplier Site 3. From Supplier 4. From General Ledger (Navigation: Purchasing-> Setups-> Organizations ->Accounts Manager-> Accounting Setups) Note: When a purchase order is created with multiple requisitions that have different currencies, the value of the Currency field defaults to the functional currency from General Ledger.

Buyer

1. The value for the Buyer field is defaulted from the Employee ID of the current user name (current user is a buyer). Note: For Purchase Orders created through PDOI, buyer field is not defaulted however it is a mandatory field Therefore PDOI needs to have buyer field populated with a valid value.

Header Terms

Bill-To Location

A location in the buying organization where supplier invoices are sent.

1. Defaulted from the purchasing document (if updating the existing document ) 2. From Source Document* (* Refer below the table) 3. From Supplier Site 4. From Financial Options (Supplier Purchasing details tab)

Payment Terms

1. Defaulted from the purchasing document (if updating the existing document) 2. From Source Document* (* Refer below the table) 3. From supplier site 4. From Supplier 5. From Financial System Parameters (Navigation : Payables Responsibilities >Setup> Options> Payables System Setup).

Pay on Receipt

- This function creates supplier invoices automatically based on receipts and purchase orders.

1. From Supplier Site Note: The value is set to Yes when Pay On Code in Supplier Site is Receipt, Use or Receipt and Use, otherwise the value defaults to No.

Required Acknowledgment - Mentions the method of supplier acceptance of the order document.

1. From Purchasing Options (Document Defaults region)

Ship-To Location

- A location where items are to be shipped to the buying organization from

1.Defaulted from the document (if updating the existing document) 2. From Source Document* (* Refer below the table) 3. The value for Ship-To Location specified in the Preferences - Purchasing Defaults Page will be defaulted in the purchase order document. 4. From Supplier Site


the supplier. 5. From Financial Options (Supplier Purchasing details tab)

Ship via

- An indication to a supplier about the desired shipping method of ordered items.

1. Defaulted from the document (if updating the existing document) 2. From Source Document* (* Refer below the table) 3. From Supplier Site 4. From Financial Options (Supplier Purchasing Details tab)

Freight Terms

- Negotiated terms between a buyer and a supplier to determine freight charges on goods ordered.


FOB

- The point or location where the ownership title of goods is transferred from the supplier to the buyer.


Transportation Arranger

Organization that arranges the transportation of goods from supplier.

1. From Source Document* (* Refer below the table) 2. From Supplier Site

Email

- Email ID of Supplier Contact

1. From a supplier contact when profile PO: Communication Email Default is set to Contact 2. From supplier site.

Fax 1. From Supplier contact when Profile PO: Communication Email Default is set to Contact 2. From supplier site.

Pcard

- Procurement card that is used as a corporate credit card to purchase items directly from a supplier.

1. From the referenced requisition. Note: Defaulted only if supplier site/supplier matches to the supplier information of Pcard and document style does not support progress payments.


Rate Type

Predefined or user-defined currency rate.

1. Defaulted from the document (if updating the existing document) 2. From referenced requisition (with/without source document reference). 3. From Purchasing Options. (Document Defaults region)

Rate Date

- The date on which Rate is calculated.

1. System Date.

Rate 1. From Currency setup (derived from Rate Type and Rate Date).

* Attributes will be defualted from source document only when source document is same across all the lines

LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER LINE


Lines Line Type

- Determines whether a purchasing document line is for goods, services, or any other type that you define.

1. Defaults from the referenced requisition. 2. If the Document Style has only one line type, the same line type will be defaulted. 3. The Line Type in the Preferences - Purchasing Defaults is defaulted in the order document provided the selected line type is enabled for the document style. 4. Defaults from Purchasing Options - Document Defaults region, provided the selected line type is enabled for the document style. Note: The profile option PO: Default Line Type takes precedence over all of the above. This profile option is available in Forms only. It is not used in Oracle Applications Framework pages.

Item 1. From the referenced requisition

Item Rev 1. From the referenced requisition

Job 1. From the referenced requisition

Item Description

1. From the referenced requisition 2.From Item 3. From Job ID

Supplier Item

It is the item number created by the supplier organization.

1. From the referenced requisition 2. From Approved Supplier List

Category

Used to group items

1. From the referenced requisition

Defaulting that occurs from Preferences- Purchasing Defaults is applicable to

manual creation of Orders / Agreements from Buyer

Work Center. It is not applicable to PDOI and

AutoCreate

.


with similar characteristics.

2. The value for Category specified in the Preferences - Purchasing Defaults page is defaulted in the order document. 3. The value for category specified in the line type will be defaulted. It will overwrite the defaulted category from Preferences - Purchasing Defaults 4. If Category is derived from Item/Job then the same should overwrite the value defaulted from the Preferences - Purchasing Defaults Page or Line Type. 5. From iProcurement Catalog Administrator (Navigation : iProcurement Catalog Administration ->Schema->Category Mapping) 6. From Items Default Category Sets (Purchasing->Setups->Items->Categories->Category Sets)

UOM

- The unit in which the quantity of an item is expressed.

1.From Source Document 2.From the referenced requisition 3.From Item 4. From Line Type

Price

1.From Source Document 2.From Oracle Advanced Pricing 3.From referenced requisition 4. From Item 5. From Line Type

Transaction Reason

The standard means to classify or explain the reason for the transaction.

1. From the referenced requisition

2. The value for Transaction Reason specified in the Preferences - Purchasing Defaults page is defaulted in the order document. Values defined in Transaction Reason window in Inventory (Setup > Transactions > Reasons) are fetched and displayed in the LOV.

Negotiated

Used to indicate that the purchase price is negotiated.

1.From Source Document Set to Yes 2.From Oracle Advanced Pricing Set to Yes 3.From RFQ & Quote Set to Yes 4.From referenced requisition without source document reference; Order without requisition reference Set to No

Lines Source Document (BPA, CPA) Document Number

- Agreement Number (Blanket or Contract) referred in the order document.

1.From referenced requisition (Not derived in PDOI) 2. Approved Supplier List (ASL), if it is not consigned. Note: Eligible source document number will be defaulted to purchase order document, if profile option PO: Automatic Document Sourcing to Yes

Line Number

- Line Number of the Source Document (BPA or CPA) referred in the order document.

1. From referenced requisition. (Not derived in PDOI) 2. Approved Supplier List (ASL), if it is not consigned. Note: Line Number is defaulted only when Document Number (BPA or CPA) exists.


Lines Contract

Note: This region is defaulted only if Oracle Project Contracts is installed. Oracle Project Contracts supports the contract management needs of project driven organizations, including commercial and government contractors, agencies, and subcontractors. The procurement products can be integrated with Oracle Project Contracts. You can enter project contract information in this region. If you are using Oracle Project Contracts you can enter the project Contract number and version

Contract Number

- This is Project Contract Number

1. Contract Number defaults from the referenced requisition. 2. The value for Contract Number specified in the Preferences - Purchasing Defaults page is defaulted for the order lines, provided the item is not a consigned item. Note: Consigned item is similar to regular item, except that there is no accounting event that might increase financial liability. When receiving consigned material, you never match a payables invoice to a consigned receipt. 3. The Contract Number is set to Blank if the item is a consigned item even if there is a value set for Contract Number in the Preferences - Purchasing Defaults Page.

Contract Version 1. The value for Contract Version defaults from the referenced requisition. 2. The value for Contract Version specified in the Preferences - Purchasing Defaults page is defaulted for the order lines, provided the item is not a consigned item. 3. The Contract Version is set to blank if the item is a consigned item, even if there is a value set for Contract Version in the Preferences - Purchasing Defaults page. Note: Contract Version will be defaulted only when Contract Number exists.

Lines Contractor Defaults

Start Date 1. The value for Start Date specified in the Preferences - Purchasing Defaults page is defaulted if the Line Type is selected as Rate Based Temp Labor or Fixed Price Temp Labor for the order document.

End Date 1. The value for End Date specified in the Preferences - Purchasing Defaults is defaulted if the Line Type is selected as Rate Based Temp Labor or Fixed Price Temp Labor for the order document.

Lines Item Attributes Retainage Rate

This rate determines the percentage of the amount requested that is withheld before releasing payments to the supplier.

1. From Supplier Site

Secondary Quantity

The quantity to transact

1. From Item


in the secondary unit of measure if the item is under dual unit of measure control.

Note: This attribute is used if Oracle Process Manufacturing (OPM) has been implemented. Depending on the selected dual UOM indicator, the Secondary Quantity is calculated.

Secondary UOM

- Used when the item is dual UOM controlled.

1. From Item Note: If Oracle Process Manufacturing (OPM) has been implemented and item is dual UOM controlled, then the Secondary UOM defaults to the value specified in the Inventory Item Master.

Grade

- It represents the requested quality control grade for the selected item.

1. From referenced requisition if grade control for the item is not No

Price Type 1. The value for Price Type specified in the Preferences - Purchasing Defaults page is defaulted in the order document. 2. From Purchasing Options (Document Defaults Region)

List Price

- This is the original inventory item price and therefore should be used as a indicative price.

1. Unit Price of item 2. From Item 3. Defaulted to 1 for Amount based lines. 4. Defaulted as Blank for Fixed Price Temp labor and Rate based temp labor lines. 5. Otherwise defaulted to 1

Market Price

- The market price that comes from the Item Master.

1. From Item 2. Blank for onetime items.

Hazard Class

- To identify categories of hazardous materials for international trade purposes.

1. From the referenced requisition 2. From Item 3. From UN Number (Navigation: Setups-> Purchasing->UN Number)

UN Number

- An identifier for hazardous material

1. From the referenced requisition 2. From Item

Type_1099 1.From Supplier


LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER SCHEDULE


Schedules- Shipping

Ship-To Organization 1. Defaults from destination organization of the requisition. 2. If any organization is associated to ship to location. 3. The value for Ship-To Organization specified in the Preferences - Purchasing Defaults Page is defaulted in the order document. 4. From Financial Options (Navigation: Financial Options>Supplier>Purchasing Details>Inventory organization.) 5. The Ship-To Organization is set to Blank if the item is a consigned item

Ship-To Location - A location where items are to be shipped.

1. Ship-To Location defaults from the deliver to location of requisition. 2. The value for Ship-To Location specified in the Preferences - Purchasing Defaults Page is defaulted in the order document. 3. From Supplier Site 4. From Financial Options (Navigation: Financial Options>Supplier>Purchasing Details>Inventory organization.)

Need-By Date

- The date by which the goods or services are required.

1. From referenced requisition. 2. The Need-By Date value specified in the Preferences - Purchasing Defaults page is defaulted in the order document.

Promised Date - The date by which the supplier is committed to supply goods or services.

1. The Promised Date value specified in the Preferences - Purchasing Defaults page is defaulted in the order document.

2. The value of the Need-By date is defaulted if the profile option PO_Need_By_Promise_Defaulting is set to Yes. This profile option is applicable only during autocreating the purchase order.

Schedules- Billing Invoice Close Tolerance - The percentage tolerance used to automatically close a shipment when uninvoiced quantity is within the quantity tolerance percentage of the shipment.

1. With consigned items, the Invoice Close Tolerance value is set to 100% because the consigned shipment is not invoiced.

2. The value for Invoice Close Tolerance specified in the Preferences - Purchasing Defaults Page is defaulted in the order document.

3. The value for Match Approval Level is defaulted from Item Master Organization ( Ship To Organization)

4. The value for Match Approval Level is defaulted from the Item Validation Organization.

5. From Purchasing Options (Document Defaults region) 6. Invoice close tolerances will be set to Blank for RFQ, P-Card referenced lines.

Match Approval Level - This function determines whether the

1. With consigned items, the Match Approval Level value is two-way matching, because the consigned shipment is not invoiced.

2. Complex Purchase orders with advances: the Match Approval Level value for the Advance shipment is two-way matching


items on a purchase order must be received and/or inspected before the corresponding invoice can be paid.

3. The value for Match Approval Level specified in the Preferences - Purchasing Defaults Page is defaulted in the order document.

4. The value for Match Approval Level is defaulted from Item Master Organization ( Ship To Organization)

5. The value for Match Approval Level is defaulted from the Item Validation Organization.

6.From Supplier 7. From Purchasing Options (Document Defaults region)

Invoice Match Option - Invoice Match Option is used by Payables to know the invoice should be matched with purchase order or receipt.

1. For Consigned items and financing pay items, the match option is defaulted to the value PO. 2. For Oracle Landed Cost Management enabled shipments, the Match option defaults to the value Receipt. 3. The value for Invoice Match Option specified in the Preferences - Purchasing Defaults Page is defaulted in the order document. 4. From supplier site 5. From Supplier 6. From Payables System setup (Navigation: Payables Super User-> Setup-> Options-> Payables System Setup: Control -> Invoice Match Option)

Accrue On Receipt

- This option is used to indicate when the accounting entries need to be sent to the GL interface.

1 The Accrue on Receipt field defaults to No if the value for P-Card is entered. 2. If Transaction flow is defined in Oracle Inventory for the item and Operating Unit, then the value is defaulted to Yes. Note: The transaction flow specifies the operating units and inventory organizations involved in the financial transactions when goods move from a source operating unit to a destination operating unit. 3. If a consigned item is entered, the value No is defaulted in the Accrue on Receipt field. 4. If distribution type is Prepayment, the value No is defaulted in the Accrue on Receipt field. 5. If the Line Type is enabled with Outside Side Processing, then the value Yes is defaulted in the Accrue on Receipt field. 6. If the item is a Stockable Inventory item, the value Yes is defaulted. 7. In Purchasing Options, if the Expense Accrual Code is set to:

a) Period End, then the value of the Accrue on Receipt field is set to No b) Receipt, the value of the Accrue on Receipt field is set to Yes.

Schedules- Receiving Controls Enforce Ship-To

- This option controls whether the supplier can deliver to a location that differs from the Ship-To location defined in the purchase order.

1. From Item. 2. From Supplier. 3. From Receiving Options. 4. For fixed price services/temp labor lines, Enforce Ship-To is defaulted to Blank.

Allow Substitute 1. From Item. 2. From Supplier.


Receipts

- This option indicates whether to allow receipt of defined substitutes in place of this item.

3. From Receiving Options. 4. For fixed price services or rate based temp labor lines, Allow Substitute Receipts is defaulted to Blank.

Receipt Routing

- A method of simplifying transaction entry by specifying routing steps for receipts.

1. When the Line Type is selected as Fixed Price Services/ Fixed Price Temp Labor/ Rate Based Temp Labor, the receipt routing will be defaulted to Direct Delivery. 2. The value for Receipt Routing specified in the Preferences - Purchasing Defaults Page is defaulted in the order document. 3. From Item. 4. From Supplier. 5. From Receiving Options.

Receipt Close Tolerance - Purchasing automatically closes a shipment for receiving if it is within the receiving closing tolerance at the receiving close point.

1. The value for Receipt Close Tolerance specified in the Preferences - Purchasing Defaults Page is defaulted in the order document. 2. From Item. 3. From Line Type. 4. From Receiving Options5. Defaulted with 0 (zero) %.

Over Receipt Tolerance - This field determines how Purchasing handles receipts that exceed the quantity received tolerance.

1. The value for Over Receipt Tolerance specified in the Preferences - Purchasing Defaults Page is defaulted in the order document. 2. From Item. 3. From Supplier. 4. From Receiving Options. 5. Defaulted with 0 (zero) %.

Receipt Days Early

- The number of days mentioned allows you to receive the goods before the promise date or need by date without warning or rejection.

1. The value for Receipt Days Early specified in the Preferences - Purchasing Defaults page is defaulted in the order document. 2. From Item. 3. From Supplier.

4. From Receiving Options.

Receipt Days Late

- The number of days mentioned allows you to receive the goods after the Promised Date or Need-By Date without warning or rejection.

1. The value for Receipt Days Late specified in the Preferences - Purchasing Defaults page is defaulted in the order document. 2. From Item. 3. From Supplier. 4. From Receiving Options.

Receipt Date Action 1. From Item


- Determines how Purchasing handles receipts that are earlier or later than the allowed number of days

2. From Supplier 3. From Receiving Options

Over Receipt Action

- Determines how Purchasing handles receipts that exceed the quantity received tolerance.

1. From Item 2. From Supplier 3. From Receiving Options

Schedules

Secondary UOM 1.From Source Document 2. From Item

UOM 1. From Source Document 2. From referenced requisition 3. From Item 4. From Line Type

Shipment Number 1. If Payment Type is Advance, Shipment Number is defaulted with a value of 0. 2. If Payment Type is Delivery, Shipment Number is defaulted with a value of 1. 3. Next number in the sequence.

Consigned Flag

- Used to mention if the item is consigned or not.

1. From referenced requisition. 2.From Approved Supplier List (ASL)

VMI Flag

- Used to mention if the item is Vendor Managed Inventory or not.

1. From referenced requisition. 2. From Approved Supplier List (ASL)

Country of Origin

- Used to capture and update an item's Country of Origin on the receipt.

1. From Approved Supplier List (ASL) 2. From Supplier Site

Receipt Required Flag 1. For consigned item and advance shipments, Receipt Required Flag is defaulted to a value of No.

2. Defaulted from Item Master Organization (Ship-To Organization). 3. Defaulted from Item Validation Organization. 4. From Supplier. 5. From Line Type. 6.From Purchasing Options


Inspection Required Flag 1. For consigned item, pay item, fixed price, rate based temp labor line types and Advance Shipments, Inspection Required Flag is defaulted to No. 2. Defaulted from Item Master Organization (Ship-To Organization). 3. Defaulted from Item Validation Organization. 4. From Supplier. 5.From Purchasing Options

Transaction Flow

- Specifies the operating units and inventory organizations involved in the financial transactions when goods move from a source operating unit to a destination operating unit.

1.Defaulted from Inventory Transaction Flow (Inventory responsibility > Setup >Organization > Intercompany Transaction flows)

Grade 1. Defaulted from referencing requisition if Grade Control for the item is not 'N'.

Secondary Quantity 1. From Item.

LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER PAY ITEM


Schedules- Pay Item

Type

- Pay Item Type specifies the way progress needs to be measured and payment is to be made.

1. If Value Basis is Quantity, the Type is defaulted to Milestone. 2. If Value Basis is Fixed Price, the Type is defaulted to Lumpsum.

Description 1. For Advance Shipment, Description is defaulted to Advance &LINE_DESC. For example Description will be Advance Boiler Installation Services. 2. For rest of pay items, description is same as line description.


LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER DISTRIBUTION


Distribution

Destination Type

- Determines the final destination of the purchased items.

1. From referenced requisition. 2. If the Item is blank or for Complex PO, Destination Type is defaulted to Expense. 3. For consigned item /outsourced assembly, Destination Type is defaulted to Inventory. 4. If there is an Outside Processing item, Destination Type is defaulted to Shop Floor. 5. If the item is Stockable and Accrue on Receipt is set to No, Destination Type is defaulted to Expense. 6. If the item is Stockable, and Accrue on Receipt is set to Yes, Destination Type is defaulted to Inventory. 7. If the item is Non Stockable, Destination Type is defaulted to Expense.

Subinventory - Subdivision of an organization which are unique physical or logical grouping of items

1. From referenced requisition. 2. The value for Subinventory specified in the Preferences - Purchasing Defaults Page is defaulted in the order document.

Work Order 1. From referenced requisition. Operation Reference 1. From referenced requisition. Distribution Delivery Requester 1. The value for Requester specified in the Preferences Purchasing Defaults

Page is defaulted in the order document. 2. From referenced requisition.

Deliver To Location

- A location where you deliver goods previously received from a supplier to individual requestors.

1. From referenced requisition 2. The value for Deliver-To Location specified in the Preferences - Purchasing Defaults page is defaulted in the order document. 3. Defaulting Deliver-To Location based on Requester, Ship-To Organization and Business Group.

Requisition 1. From referenced requisition. 2. The value for Requisition Number specified in the Preferences - Purchasing Defaults page is defaulted in the order document.

Requisition Line 1. From referenced requisition 2. The value for Requisition Line specified in the Preferences - Purchasing Defaults page is defaulted in the order document.


Note: Requisition Line will be defaulted only if Requisition is defaulted.

Distribution Billing

GL Date

- The date used to determine the correct accounting period for your invoice and payment transactions.

1. If the profile option PO_Autocreate_Date is set to Yes, then the GL Date is defaulted to the requisition date. 2. The value for GL Date specified in the Preferences - Purchasing Defaults page is defaulted in the order document. You can override the Preferences - Purchasing Defaults page values only if the GL Date is in a closed period. 3. If the profile option PO: Validate GL Period has been set to Redefault, then the GL Date is defaulted to System Date.

PO Charge Account

- The account to charge for the cost of the goods/services in the purchasing operating unit

1. From referenced requisition. 2. From the Account Generator. For more details about Account Generator See: Oracle Purchasing Users Guide. 3. The value for PO Charge Account specified in the Preferences - Purchasing Defaults page is defaulted in the order document.

PO Accrual Account

- The AP accrual account in the purchasing operating unit.

1. From referenced requisition. 2. From the Account Generator. Note: In PDOI, the user defined accrual account can be overridden by the Account Generator based on the PO charge account.

PO Variance Account

- The invoice price variance account in the purchasing operating unit.

1. From referenced requisition. 2. From the Account Generator. Note: In PDOI, the user defined variance account can be overridden by the Account Generator based on the PO charge account.

Budget Account 1. From referenced requisition. 2. From the Account Generator. Note: In PDOI, the user defined budget account can be overridden by the account generator based on the PO charge account.

Destination Charge Account

1. From the Account Generator.(Only in case of shared procurement)

Destination Variance Account

1. From the Account Generator. (Only in case of shared procurement)

Distribution Recovery Rate

- The recovery rate is the percentage of tax that your business can reclaim for credit.

1. Defaulted from referenced requisition if Tax Recovery Override flag is Yes. Note: Not available in R12

Rate Type 1. From Header.


Rate Date 1. From Header.

Rate 1. From Header.

Unit Number

- The Unit Number displays if you are using the Oracle Project Manufacturing feature End item model/unit number.

1. From referenced requisition.

Destination Organization

- An organization that receives goods/services from a given organization.

1. Defaulted with Ship-To Organization on shipment.

GL Encumbered Period

- The period in which encumbrance for the purchasing document takes place.

1.Based on GL Date

Distribution- Contracts

Contract Line Number

- The number which is defined in Project contracts lines

1. Defaulted from referenced requisition, if consigned flag is No

Deliverable Number

- The number which is defined in Project contracts deliverable.

1. Defaulted from referenced requisition, if consigned flag is No

Distribution Work Order Details (Defaulted only when Destination Type is Shop Floor)

WIP Job

- A production order for the manufacture of a specific quantity of goods, using specific materials and resources.


WIP Production Line 1. From referenced requisition.


- The physical location where you manufacture a repetitive assembly usually associated with a routing.

WIP Operation Sequence Number

- The number that indicates the order of operation in a routing.


WIP Resource Sequence Number

- The number that indicates the order of a resource in an operation.


Distribution Projects Note: This region will be defaulted only if any of the following products is installed : Oracle Projects, Oracle Project Manufacturing, Oracle Grants and Oracle Project Contracts

Project - The unique number assigned to project work.

1. From the referenced requisition. 2. The value for Project specified in the Preferences - Purchasing Defaults page is defaulted in the order document.

Task - A subdivision of project work

1. From the referenced requisition. 2. The value for Task specified in the Preferences - Purchasing Defaults page is defaulted in the order document. Note: Task is defaulted only if a Project is defaulted.

Award - Represents the source of funding for a project or a task.

1. From the referenced requisition. 2. The value for Award specified in the Preferences - Purchasing Defaults page is defaulted in the order document. This field will be defaulted only if Grants product is installed, a Project and task are defaulted.

Distribution Expenditure (Expenditure details can be defaulted only when Project details are given and Destination Type should be Expense)

Expenditure Type

- A classification of cost assigned to each expenditure item.

1. From the referenced requisition. 2. The value for Expenditure Type specified in the Preferences - Purchasing Defaults is defaulted in the order document.

Expenditure Organization

1. From the referenced requisition. 2. The value for Expenditure Organization specified in the Preferences -


Purchasing Defaults page is defaulted in the order document. 3. Based on the profile option PO: Expenditure Organization.

Expenditure Item Date

- The date on which work is performed and is charged to a project and task.

1. From referenced requisition. 2. The value for Expenditure Date specified in the Preferences - Purchasing Defaults page is defaulted in the order document.


LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES BLANKET PURCHASE AGREEMENT LINE


Lines

Expiration Date

- The period in which encumbrance for the purchasing document takes place.

1. From referenced requisition Assignment End Date. 2. From Price Modifier.

Minimum Release Amount

- The minimum Amount that can be released against the purchase order.

1. From Purchasing Options (Document Defaults Region).

Shopping Category

- The term to group items with similar characteristics.

1. From referenced requisition. 2. From iProcurement Catalog Administrator (Schema>Category Mapping>Shopping Category).

Price Type 1. The value for Price Type specified in the Preferences - Purchasing Defaults page will be defaulted in the order document. 2. From Oracle Sourcing.

Allow Price Override

- This flag is to indicate that the price can be overridden on the PO.

1. Yes for Fixed price services and fixed price temp labor line type. 2. No for Goods, Rate Based Temp Labor and other line types.

Price Break Type (Cumulative or Non Cumulative)

1. From Oracle Sourcing-quotation. 2. From Purchasing Options (Document Defaults region).

Lines Price Break Organization 1.From Header Ship-To Organization

2.From Oracle Sourcing

Location 1.From Header Ship-To Location 2. From Oracle Sourcing

Quantity 1. From Oracle Sourcing

Break Price 1. Defaulted from Unit Price


Discount

1. From Oracle Sourcing

Effective From 1. From Oracle Sourcing

Effective To 1. From Oracle Sourcing

Lines Item Attributes Long Description 1. From Item.

Supplier Auxiliary ID 1. From Item Catalog.

Supplier URL 1. From Item Catalog.

Manufacturer 1. From Item Catalog.

Manufacturer URL 1. From Item Catalog.

Manufacturer Item 1. From Item Catalog.

Attachment URL 1. From Item Catalog.

Alias 1. From Item Catalog.

Lead Time 1. From Item Catalog.

UNSPSC Code 1. From Item Catalog.

Image 1. From Item Catalog.

Thumbnail Image 1. From Item Catalog.

Availability 1. From Item Catalog.

Comments 1. From Item Catalog.

UN Number 1. From Oracle Sourcing - defaulted from item. 2. Defaulted from referenced requisition.

Hazard Class 1. From Oracle Sourcing - defaulted from item. 2. Defaulted from referenced requisition.


LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES BLANKET PURCHASE AGREEMENT CONTROL


Controls

Requesting OU 1. Defaulted from Operating Unit of the referenced requisition. 2. Defaulted from Owning Organization.

Purchasing OU 1. Defaulted from Purchasing Operating Unit. 2. Defaulted from Owning Organization.

Purchasing Site 1. From Supplier Site.

Enabled (OU Access) 1. For owning Organization defaulted to Yes.

Effective From 1. From Oracle Sourcing

Effective To 1. From Oracle Sourcing


CONCLUSION This white paper enables users understand how the system works through the derivation sequence and defaults the values for the relevant fields. Defaulting Rules enable users to reduce data entry time and effort. Additionally, users can be assured of more accurate data in their purchasing documents. Defaulting Rules in Oracle Purchasing thus improves document creation cycles and processes. This in turn increases compliance and manages risk by eliminating manual intervention. The buying organization has the advantage of improved efficiency and enhanced productivity.

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use April 2014 Author: Manavalan Ethirajan Contributing Authors: Vijayaganesh Sampathkumar, Abhimanyu Ganguly,Supriya Bontala, Indu Nagdeo, Sridurga Pantham, Pratima Mahtani Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA 94065 U.S.A. Worldwide Inquiries: Phone: +1.650.506.7000 Fax: +1.650.506.7200 oracle.com Copyright 2006, Oracle. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

Oracle E-Business Suite PurchasingDefaulting Rules in Purchase Orders and Agreements: For BetterConfiguration and Ease of UseINTRODUCTIONDERIVING ATTRIBUTE VALUES IN ORACLE PURCHASINGGUIDELINES FOR DEFAULTING IN PURCHASING DOCUMENTSCONCLUSION