oracle purchasing end to end functional document
DESCRIPTION
This presentations covers Oracle Purchasing End to End Functional DocumentTRANSCRIPT
Oracle Purchasing is a comprehensive procurement solution designed to help purchasing professionals to manage the procurement process at Right Price and in Right time and to develop strategic supplier relationships. Development of strategic supplier relationshipsrequisitions,
Purchase Requisition
Supplier
Request for Quotation(RFQ)
Quotation
Receipts PaymentsReturnsPurchase Order
Au t o Cr ea t e
Auto Create
Overview
Unit I : Supply Base Management • Supplier Information• Supplier List• Sourcing Rule• Approved Supplier List• Automatic Sourcing • Supplier Item Catalog
Unit II : Requisitions • Requisition Templates• Purchase Requisitions.• Internal Requisitions • Managing Buyer Workload
Unit III : Request For Quotation and Quotation• Entering RFQ’s• Auto create• Entering Quotations• Quote Analysis
Content
Unit IV : Purchase Orders• Standard Purchase Orders• Planned Purchase Orders and Planned Releases• Blanket Purchase Agreements and Blanket Releases• Contract Purchase Orders• Auto Create Purchase Orders and Releases• Automatic Release Generation
Unit V : Receiving • Advance Shipment Notices (ASNs) • Managing Receipts:Direct, Standard and Inspection• Unordered,Cascade and Express Receipts • Receiving Transactions • Returns • Corrections
Content
Key Features• Create and rank approved supplier lists by item or commodity• Associate supplier item numbers with internal parts• Prevent purchases from unapproved suppliers• Compare actual volume to target volume by supplier• Assess supplier price, service, and quality performance• Create request for quotations (RFQ) automatically from on-line requisitions• Create Purchase Orders automatically from on-line requisitions• Define custom supplier quotation lists for RFQs• Create supplier quotations automatically from RFQs, or enter them directly• Analyze quotations and decide which should be available to reference on requisitions and
purchase orders (POs)
• Access and reference your catalog/quotation information on-line while creating documents
Unit I : Supply Base Management
Supplier information is a vital part of Oracle Purchasing and is used in all components of procurement, beginning with the requisition request through to the payment for goods or services received. User need to define a supplier before performing any activities within Oracle Purchasing.
Purchase Requisition Request for Quotation (RFQ) Quotation
Receipts PaymentsReturnsPurchase Order
Supplier Information
Unit I : Supply Base Management
Supplier sites and Contacts:User can identify multiple business sites for each supplier and enter specific purchasing details for each site. In addition, user can identify an unlimited number of contacts for each site.User can decide to which site or sites the invoices and purchase orders are sent. In addition , user can designate a site to receive only requests for quotation, until user certify the supplier as a purchasing site.
Supplier
Site-A Site-B Site-C
Contact 1 Contact 3 Contact 4 Contact 5 Contact 6Contact 2
Navigation : Supply Base-> Suppliers Navigation: Supplier Base -> Supplier
Unit I : Supply Base Management
Site- Specific Information :User has the ability to identify terms and conditions, purchase details and payment information for each supplier site.
Terms and conditions
Site-B
Site-C
Site-A Payment methods
Terms and conditions
Terms and conditions
Payment methods
Payment methods
Supplier
Supplier Item Catalogue:The Supplier Item Catalog provides a simple mechanism for locating items and their source information for the purpose of creating purchase order and requisition lines. User can open the catalog from an existing requisition or purchase order and add lines to that document. Alternatively, user can open the catalog from the Navigator and search for item information from there.The Supplier Item Catalog does not support Outside Processing.
Unit I : Supply Base Management
Supplier List :Supplier Lists window will be used to enter and edit supplier lists. User can copy suppliers from the supplier lists onto the RFQ supplier list while creating Request For Quotation (RFQ). Sourcing Rule:User can define sourcing rules that specify how to replenish items in an organization, such as purchased items in plants. Sourcing rules can also specify how to replenish all organizations, as when the entire enterprise gets a subassembly from a particular organization.Refer to Profile option MRP: Default Sourcing Assignment SetThis profile option indicates which sourcing rules assignment set will be used in Purchasing and Supplier Scheduling. Therefore, the Assignment Set name user choose for this profile option is the Assignment Set name should specify when user assign sourcing rules in the Sourcing Rule/Bill of Distribution Assignments window. This profile option must be set if you are using sourcing rules in Purchasing.Refer to Profile option MRP: Sourcing Rule Category Set If sourcing rule is used in Purchasing, this profile needs to be set to the name of the default category set used by Purchasing.Approved Supplier List: This repository includes information about all suppliers with business statuses including Approved, Debarred, or New. Use the Approved Supplier List and Supplier– Item Attributes windows to specify blanket purchase agreements or quotations as source documents for a particular item and supplier or particular item category (commodity) and supplier. Purchasing automatically defaults this source document information,
Unit I : Supply Base Management
Unit I : Supply Base Management
Automatic Sourcing:Automatic sourcing automatically defaults sourcing information onto the requisitions, blanket purchase orders, or quotations you create. User can easily assign any item with an item number to a specific blanket purchase agreement or quotation created. Purchasing automatically assigns the name of the supplier for the blanket purchase order and quotation to any requisition for this item. Refre to Profile Option - Po:Automatic Document Sourcing , Yes means that Purchasing automatically defaults source document and pricing information for an item from the most recently created blanket purchase agreement or quotation. No means that this source document information comes from the Approved Supplier List window, where you must specify which source documents to use. Supplier Item Catalog: The Supplier Item Catalog provides a simple mechanism for locating items and their source information for the purpose of creating purchase order and requisition lines. You can open the catalog from an existing requisition or purchase order and add lines to that document. Alternatively, you can open the catalog from the Navigator and search for item information from there.Navigation: Requisition/Purchase Orders Windows->click on Catalog button-> click on find button-> select the appropriate tabbed region (Negotiated sources, Prior Purchases, Sourcing Rule and Requisition Template.)->Select the down arrow to place the line on to order pad-> Select Select the Select button to add the order pad lines to the requisition or purchase order from which you accessed the catalog.Refer to profile option PO: Default Supplier Item Catalog Option, determines which of these tabbed regions is the default when the catalog opens from the menu. Attention: The supplier Name and Site, if you specify one, must match the sourcing rule Supplier and Site to default the supplier information or source document information successfully.
Unit I : Supply Base Management
Define Sourcing
Rule for theSupplier
Create Assignment set
Assign sourcingRule to Itemand then to
Assignment set
Overview:Sourcing Rule
Bye from Bye from
Supplier A Supplier B
50% of the time Rank 1
50% of the time Rank 2
Refer to Profile option MRP: Default Sourcing Assignment Set
Navigation: Supplier Base -> Sourcing Rule
Unit I : Supply Base Management
Unit I : Supply Base Management
Approved Supplier List:
Define ASL for each item, eneterSupplier name with business rule
as direct and status as new/ approved/Debar against each item and
select
Enter source document(Quotation/Blanket Order) details Against each item in the attribute
Window, to enable to default The source information while
creating Purchasing documents
Key Features• Create, edit, and review requisition information on– line. User should also be able to enter
suggested supplier information,delivery instructions, multiple accounting distributions, and notes to buyers, approvers, and receivers.
• Review the current status and action history of requisitions.User should always know who approves requisitions and whether they are in the approval, purchasing, receiving, or delivery stage.
• Perform on– line funds checking before creating requisitions. User should always know how planned expenses compare to budget.
• Access supplier/item catalogs to create documents• Distribute expenses across multiple cost centers, projects, or departments• Use multiple currencies• Build account distributions automatically• Use requisition templates for frequently requested items• Import requisitions from other systems such as material or distributions requirement planning
applications.• Create internal requisitions that are sourced from your inventory by means of an internal sales order.
Unit II : Requisitions
Purchase RequisitionsWith on-line requisitions, user can easily centralize the purchasing department, source the requisitions with the best suppliers. user can use Oracle Master Scheduling/MRP and Oracle Inventory to generate on-line requisitions automatically based on replenishment requirements. user can use Oracle Work in Process to generate on-line requisitions for outside processing requirements.Internal RequisitionsInternal requisitions provide the mechanism for requesting and transferring material from inventory to other inventory or expense locations. Oracle Purchasing, Oracle Order Entry, and Oracle Inventory combine to give a flexible solution for inter-organization and intra-organization requests.Requisition Template :Templates automate requisitioning of commonly ordered items like office supplies.To create a template, user can specify the items individually or they can reference an existing requisition or purchase order. If user reference an existing document, Purchasing adds all lines on the document to the template. You can reference multiple documents to add all their lines to the same template.After user define a template, user can reference the template in the Supplier Item Catalog. When user do so, Purchasing displays all template lines that are valid for the destination organization.
Unit II : Requisitions
Requisition Import:Using Requisition Import, user can import requisitions from other Oracle Applications or from non– Oracle systems. Requisition Import lets user integrate Purchasing with new or existing applications.Master Scheduling/MRP, Work In Process, Order Management, and Inventory all provide requisition information to the requisition interface table from which Requisition Import creates requisitions.
Unit II : Requisitions
Create Requisition
(2) Use Catalog as source
(3) Requisition Import
Requisition Approval
Requisition Pool
Open Requisition Interface Table
Oracle Purchasing
MRP WIP INV OMDemand
Oracle Modules
(1) Manually
Create Requisition
Navigation:(1) Requisitions-> . Requisitions(2) Requisitions -> . Requisitions->Catalog -> . Refer to slide no 9 for . further detail(3) Requests -> Select . Requisition Import -> . Select Source
Unit II : Requisitions
Request For Quotation and Quotation : Purchasing provides user with request for quotation (RFQ), and quotation features to handle sourcing needs. User can create an RFQ from requisitions, match supplier quotations to user RFQ, and automatically copy quotation information to purchase orders.Purchasing provides complete reporting to control your requests for quotations and evaluate supplier responses. Identify requisitions that require supplier quotations and automatically create a request for quotation.Quotation :Use the Quotations window to: Enter and edit quotations, Review and edit quotations you copied from RFQs.Quote Analysis: Use this window to approve the quotation.
Unit III: RFQ & Quotations
Requisition Line Pool
Query existing lines Choose lines from query results
Auto creation
Manual creation
RFQ
Manually create RFQSupplier from Supplier List
Supplier A
Supplier B
Supplier C
Enter RFQ
RFQ
Autocreating RFQ
Navigation:RFQ’s and Quotations->RFQ’s
Navigation: Auto Create-> find-> Select document type as RFQ
Request For Quotation
Manually enter quotation
Copy document from RFQ window to create quotation
Quotation analysis for approval / un approval
Navigation:RFQ’s and Quotations->QuotationsRFQ’s and Quotations->Quotation analysis
Quotation
Key Features:• Auto Create POs from on-line requisitions. Consolidate and centralize purchase requirements from multiple warehouses, plants, or
locations. Create POs in any currency.• Create standard purchase orders and blanket purchase agreements from both on-line and paper
requisitions. Source a single requisition line from two or more suppliers Define purchasing contracts and reference them on Pos.• Check funds availability while creating purchase orders so user always know how their
planned expenses compare with budget Build account distributions automatically.• Create POs for different types of items including services and one-time purchases.• Provide multiple shipment schedules per PO line. Access sourcing and inventory information on-line while building Pos.• Review the status and history of purchase orders at any time for all the information user need.• Freeze, cancel, or final close POs to control future transactions. Record supplier acceptances.
Unit IV: Purchase Orders
Standard Purchase Orders:User can create standard purchase orders for one-time purchases of items or services from a supplier. Each standard purchase order can have multiple lines. Each purchase order line can have multiple shipments distributed across multiple accounts. User can reference contract purchase agreement numbers on the lines of standard purchase order. Planned Purchase Orders:User can create planned purchase orders manually. A planned purchase order is a combination of a standard purchase order and a blanket purchase agreement. It includes tentative delivery information and accounting distributions for goods or services that user want to buy over a period of time. User can later issue scheduled releases against the planned purchase order to place the actual order. If user use encumbrance accounting, user can use the planned purchase order to reserve funds for long term agreements.Blanket Purchase Agreements:User can quickly define blanket purchase agreements for specific items and associated price breaks. Blanket purchase agreements allow stable pricing over the life of the agreement while allowing flexible delivery schedules and order quantity commitments as user release against the blanket.Contract Purchase Agreements:User can create contract purchase agreements containing master terms and conditions for a supplier and then reference the contract number on the line of a standard purchase order. Oracle Purchasing monitors the total amount you have spent against the contract purchase agreement.
Unit IV: Purchase Orders
Item or Service details (Lines)
Supplier delivery (Shipments)
Document details (Header)
Internal distribution details (Distributions)
Types of Purchase Orders : Standard, Blanket, Planned and Contract
Manually enter Purchase Order
Copy document from Quotation window to create Purchase Order
Submit for approval
Purchase Order Components
Navigation: Purchase Orders -> Purchase Orders.
Unit IV: Purchase Orders
Auto create Purchase Order :
P U R C H A S EO R D E R
Requisition Line Pool
Query existing lines
Choose lines from query results
Auto creation
Manual creation
Submit for approval
Select lines
for auto create
Add lines to
order padfor auto
create
1) .Standard PO, 2) Planned PO and 3) Blanket Release
Navigation: Auto Create-> find-> Select document type as 1 or 2 or 3
Unit IV: Purchase Orders
Prerequisite
Requisition Import
Auto releases
Open requisitioninterface table
Approved requisitions
Click on attributesSelect Automatic releases asRelease Method & blanket
Agreement as asource document
1) Set Profile option: PO: Release During ReqImport to yes
Approved Blanket Release
2)
INV / WIP/MRP &OM
Modules
ASL: Approved Supplier List Navigation: Supply Base ->ASL
Automated Purchase Order
Create ASL with Business rule as direct’ and source as ‘Approved’
Oracle Purchasing let user to control the items they order through receiving, inspection, transfer, and internal delivery. User can use these features of Oracle Purchasing to control the quantity, quality, and internal delivery of the items you receive.Key Features:
• Use routing controls to enforce material movement through receiving; for example, User can require inspection for some items and dock-to-stock receipt for others
• Control the quantity of items user receive, the acceptable delivery window, and acceptable receipt location with tolerances that user specify
• Optionally require blind receiving.• Receive individual shipments or all items with a few keystrokes.• Inspect items and evaluate supplier quality performance.• Specify two, three, or four-way matching.• Record receipt of unordered items based on user item, supplier, or organization defaults; for example,
if user organization does not allow receipt of unordered items, user can prevent entry of a receipt unless it is matched to an order shipment
• Record receipt of substitute items based on user order, item, supplier, or organization defaults• Return items to the supplying supplier• Correct receiving transaction errors
Unit V: Receiving
Return Material Authorizations (RMAs)User can use Purchasing receiving functionality to receive goods returned by their customers. These are goods for which a sales order in Oracle Order Management was created. If the customer wishes to return the goods, the sales representative creates a return material authorization (RMA) authorizing the return. When the return arrives at user receiving dock, user can create a receipt against the RMA as other receipt, inspect the return, return the repaired goods to the customer, and make receiving corrections. Advance Shipment Notices (ASNs)An Advance Shipment Notice (ASN) is transmitted via Electronic Data Interchange (EDI) from a supplier to let the receiving organization know that a shipment is coming. The ASN contains details including shipment date, time, and identification number; packing slip data; freight information; item detail including cumulative received quantities; country of origin; purchase order number; and returnable container information.Receiving LocationsReceiving locations are designated areas in which user temporarily store items before deliver them to their final destinations. Receiving dock and the area in which items are inspected are receiving locations. Receiving locations are not required when the routing is Direct Receipt,
Unit V: Receiving
Unordered ReceiptsUser can receive items from a supplier when they do not have a corresponding purchase order. User can also receive returned items from a customer that were issued on a sales order in Order management and do not have RMA. First receive the items as Unordered Receipts in the Receipts window. User can create a new receipt or add to an existing receipt for the supplier or customer who shipped the unexpected items. Then perform a standard receipt for the unordered item shipment quantity.Then use the Match Unordered Receipts window to specify the purchase order or RMA number, release, line, and shipment schedule to which user want to match the unordered receipt.
Express and Cascade TransactionsPurchasing offers two functions to facilitate transaction entry: Express and Cascade. In Express mode, user cannot modify default quantities, but they can record the delivery of many receipts at once. Cascade mode is applicable only for receipts for the same item. In cascade mode, Purchasing starts with the first receipt and enters deliveries for each subsequent receipt for this item until the cascade quantity is met.
Unit V: Receiving
Po lines withStandard
receipt routing
Receive items to
“Receiving”
Transfer stock from Receiving to
Final delivery location
Po lines withDirect
receipt routing
Po lines withInspectionrequired
DELIVERy
Receiving items directly into
Final delivery location
Receive items to
“Receiving”
Enter Inspection
results
Return the rejected items back to supplier
Transfer accepteditems To final
delivery location
Unit V: Receiving
Navigation: Receiving -> Receipts
Manual receipt
Express receipt
Cascade receipt
One line at a time
Multiple lines at one time Per supplier
One receipt of multiple shipment of the same item
Per supplier
Types of Receiving
Unit V: Receiving