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R12 Oracle iProcurementFundamentals

Student Guide – Volume 1

D50792GC10

Edition 1.0

September 2007

D53020


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Copyright © 2002, 2007, Oracle. All rights reserved.

Disclaimer

This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy andprint this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorizationof Oracle.

The information contained in this document is subject to change without notice. If you find any problems in the document, pleasereport them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is notwarranted to be error-free.

Restricted Rights Notice

If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the UnitedStates Government, the following notice is applicable:

U.S. GOVERNMENT RIGHTSThe U.S. Government’s rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restrictedby the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract.

Trademark Notice

Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective

owners.

Author

Richard Sears, Vic Mitchell

Technical Contributors and Reviewers

Barbara.Snyder, Sharon Tennier

This book was published using: oracletu tor


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Copyright © Oracle, 2007. All rights reserved.

R12 Oracle iProcurement Fundamentals Table of Contentsi

Table of Contents

Procure to Pay Lifecycle Overview ........... ........... ........... ........... ........... ........... ........... ........... .......... ........... ...1-1

Procure to Pay Lifecycle Overview...............................................................................................................1-3Objectives ......................................................................................................................................................1-4

Procure to Pay Lifecycle................................................................................................................................1-5Oracle Procure to Pay Process.......................................................................................................................1-7Demand: Requisitions....................................................................................................................................1-9Source: RFQs and Quotations .......................................................................................................................1-11Suppliers ........................................................................................................................................................1-13Purchase Orders.............................................................................................................................................1-15Receiving.......................................................................................................................................................1-17Invoicing........................................................................................................................................................1-19Payment .........................................................................................................................................................1-20Overview of Oracle Application Integration .................................................................................................1-21Summary........................................................................................................................................................1-23

Understanding Oracle iProcurement.............................................................................................................2-1

Understanding Oracle iProcurement..............................................................................................................2-3

Objectives ......................................................................................................................................................2-4Procure to Pay: Oracle iProcurement.............................................................................................................2-5Agenda...........................................................................................................................................................2-6Oracle Advanced Procurement ......................................................................................................................2-7Oracle iProcurement In E-Business...............................................................................................................2-9Key Oracle iProcurement Capabilities ..........................................................................................................2-10E-Business Suite Integration..........................................................................................................................2-11Procurement Suite Integration .......................................................................................................................2-13Agenda...........................................................................................................................................................2-15Key Functionality of Oracle iProcurement....................................................................................................2-16Oracle iProcurement Content Management...................................................................................................2-18Content Zones................................................................................................................................................2-19Stores.............................................................................................................................................................2-20

Shopping........................................................................................................................................................2-21Overview of Checkout...................................................................................................................................2-23Approval and Document Creation .................................................................................................................2-24Overview of Receiving..................................................................................................................................2-25Center-Led Procurement................................................................................................................................2-26Agenda...........................................................................................................................................................2-27Oracle iProcurement Shopping Data Flow ....................................................................................................2-28Oracle iProcurement Submit Request Data Flow .........................................................................................2-30Agenda...........................................................................................................................................................2-32Oracle iProcurement Setup Overview ...........................................................................................................2-33Oracle iProcurement Setup Steps ..................................................................................................................2-34

Practice - Create a New Employee and User .............................................................................................2-35Solution - Create A New Employee and User ...........................................................................................2-36Practice - Set Yourself Up As a Buyer ......................................................................................................2-40

Guided Demonstration - Run the Fill Employee Hierarchy Process .........................................................2-42Summary........................................................................................................................................................2-43

Oracle iProcurement Content Management .......... ........... .......... ........... ........... .......... ........... ........... ........... .3-1

Oracle iProcurement Content Management...................................................................................................3-3Objectives ......................................................................................................................................................3-4Procurement Process: Oracle iProcurement...................................................................................................3-5Agenda...........................................................................................................................................................3-6What Are iProcurement Catalogs? ................................................................................................................3-7


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R12 Oracle iProcurement Fundamentals Table of Contentsii

Why Use Catalogs? .......................................................................................................................................3-8What is an iProcurement Store? ....................................................................................................................3-9Where Does the Catalog Content Come From?............................................................................................3-10Oracle iProcurement Content Management...................................................................................................3-11Local or Buyer-Hosted Content.....................................................................................................................3-13External or Supplier-Hosted Content.............................................................................................................3-14External Marketplace-Hosted Content...........................................................................................................3-16Choosing Content ..........................................................................................................................................3-17

Requirements of Local Catalogs....................................................................................................................3-18Requirements of Supplier-Hosted Content ....................................................................................................3-19Requirements of Marketplace-Hosted Content............................................................................................3-20Utilization of Catalog Content.......................................................................................................................3-21Control Content Using Content Zones...........................................................................................................3-22Stores: Pulling It All Together…...................................................................................................................3-23iProcurement Catalog Administration ...........................................................................................................3-24Agenda...........................................................................................................................................................3-25Creating Local Content..................................................................................................................................3-26Oracle iProcurement Content Management Review.....................................................................................3-27Oracle Content Utilization Types..................................................................................................................3-28Local Content ................................................................................................................................................3-29E-Business Suite Local Content ....................................................................................................................3-30

Practice - Create a Purchasing Category....................................................................................................3-31Solution - Create a Purchasing Category...................................................................................................3-32Practice - Create Items...............................................................................................................................3-38Solution – Create Items .............................................................................................................................3-39

Uploading Local Content...............................................................................................................................3-44Before Uploading Content.............................................................................................................................3-45Upload Content: Resource Files ....................................................................................................................3-46Item Content That You Upload .....................................................................................................................3-47Uploading Local Content...............................................................................................................................3-48Content Upload And Document Types..........................................................................................................3-49Automatically Uploading Shopping Categories ............................................................................................3-50Price Lists That You Upload .........................................................................................................................3-51Online Content Authoring Flow....................................................................................................................3-52

Upload Content Authoring Flow ...................................................................................................................3-53Sample Item Spreadsheet Upload..................................................................................................................3-54Practice - Create a Global Blanket Purchase Agreement and Edit Content...............................................3-55Solution - Create a Global Purchase Agreement and Edit Content............................................................3-56

XML: More Catalog Control .........................................................................................................................3-62XML Upload Items File Structure.................................................................................................................3-63Uploading Items: Spreadsheet Compared to XML.......................................................................................3-65Sample XML Administrative Section............................................................................................................3-66Sample XML Data File Structure..................................................................................................................3-67Sample XML Document Header Section ......................................................................................................3-68Sample XML Document Lines Section.........................................................................................................3-69Sample XML Data Item Section....................................................................................................................3-70Sample XML Data Price Section...................................................................................................................3-71

Practice - Understand the XML Data File Structure..................................................................................3-72Practice - Load Items Using XML.............................................................................................................3-73Solution – Load Items Using XML ...........................................................................................................3-74

Loading Local Catalog Images......................................................................................................................3-81Sample Uploads for Image Files....................................................................................................................3-82Maintaining Items and Prices ........................................................................................................................3-83View Loader Job Status.................................................................................................................................3-84View Document Upload History ...................................................................................................................3-86Agenda...........................................................................................................................................................3-87Catalogs, Content Zones, And Stores ............................................................................................................3-88


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R12 Oracle iProcurement Fundamentals Table of Contentsiii

iProcurement Catalog Administration: Manage Stores ................................................................................3-89Content Zones................................................................................................................................................3-90Why Content Zones? .....................................................................................................................................3-91Creating A Local Content Zone.....................................................................................................................3-92Applying Content Security Rules ..................................................................................................................3-93Applying Content Security Rules In Stores...................................................................................................3-94

Practice - Create a Local Content Zone .....................................................................................................3-95Solution – Create a Local Content Zone....................................................................................................3-96

Creating A Punchout Zone ............................................................................................................................3-99Creating An Informational Zone ...................................................................................................................3-100

Practice - Create an Informational Content Zone ......................................................................................3-102Solution......................................................................................................................................................3-103

Creating Smart Forms....................................................................................................................................3-104What Are iProcurement Stores? ....................................................................................................................3-105Managing Stores............................................................................................................................................3-107

Practice - Create a Store ............................................................................................................................3-109Solution – Create a Store...........................................................................................................................3-110

Agenda...........................................................................................................................................................3-112Remote Catalog Content................................................................................................................................3-113Oracle iProcurement Catalog Management Review.....................................................................................3-114Oracle Content Zone Types Review..............................................................................................................3-116

What is Punchout?.........................................................................................................................................3-117What is Transparent Punchout? .....................................................................................................................3-118Oracle iProcurement Punchout Models .........................................................................................................3-120XML: The Language of a Punchout ..............................................................................................................3-121Comparing a Supplier Punchout to a Marketplace Punchout ........................................................................3-122Model 1 & 2 Technical Overview .................................................................................................................3-123Models 3 & 4 Technical Overview................................................................................................................3-124Deciding on a Punchout Model .....................................................................................................................3-126Punchout Management ..................................................................................................................................3-127Basic Punchout Setup Steps...........................................................................................................................3-128Oracle Exchange Punchout Setup..................................................................................................................3-130Supplier Punchout Setup ...............................................................................................................................3-131Agenda...........................................................................................................................................................3-132

Administer Oracle iProcurement Catalog Structure .....................................................................................3-133Catalog Structure Components......................................................................................................................3-134Local Catalog Structure: Categories..............................................................................................................3-135Local Catalog Structure: Items ......................................................................................................................3-136Creating and Modifying the Catalog Structure..............................................................................................3-137Online Schema Maintenance.........................................................................................................................3-138XML Upload Schema File Structure .............................................................................................................3-139Sample XML Schema File.............................................................................................................................3-140Sample XML Schema Section.......................................................................................................................3-141

Practice - Review XML Schema Structure................................................................................................3-142Practice - Load Categories using XML .....................................................................................................3-143Solution – Load Categories Using XML ...................................................................................................3-144

Manage Base Descriptors ..............................................................................................................................3-148Manage Item Categories................................................................................................................................3-149Managing Descriptors....................................................................................................................................3-150Manage Category Hierarchy..........................................................................................................................3-152Sample iProcurement Table of Contents .......................................................................................................3-153Map iProcurement Categories .......................................................................................................................3-154Map Purchasing Categories ...........................................................................................................................3-155Shopping Category Mapping.........................................................................................................................3-156

Practice - Map iProcurement Categories to Purchasing Categories...........................................................3-157Solution – Map iProcurement Categories to Purchasing Categories .........................................................3-158Practice - Build a Schema Hierarchy.........................................................................................................3-159


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Solution - Build a Schema Hierarchy ........................................................................................................3-160Uploading Categories and Descriptors ..........................................................................................................3-162Agenda...........................................................................................................................................................3-163Catalog Search Components..........................................................................................................................3-164Types of Catalog Searches.............................................................................................................................3-165Search Results Display: Paragraph................................................................................................................3-167Search Results Display: Grid.........................................................................................................................3-168Special Characters in Catalog Searches.........................................................................................................3-169

Filtering and Sorting......................................................................................................................................3-170Search Descriptor Characteristics..................................................................................................................3-171Searchable Base Descriptors..........................................................................................................................3-172Search Results Visible Base Descriptors .......................................................................................................3-173Rebuild Catalog Indexes................................................................................................................................3-174Search Engine Setup Impact..........................................................................................................................3-175Agenda...........................................................................................................................................................3-176iProcurement Catalog Administration ...........................................................................................................3-177Setup Considerations .....................................................................................................................................3-178Local Catalog Setup.......................................................................................................................................3-179Profile Options for Uploading Local Content................................................................................................3-180Supplier-Hosted Setup...................................................................................................................................3-181Marketplace-Hosted Setup.............................................................................................................................3-182

Profile Options for Punchout .........................................................................................................................3-183Practice - Recognize Catalog Specific Profile Options..............................................................................3-184

Agenda...........................................................................................................................................................3-186Decide on a Catalog Source...........................................................................................................................3-187Considerations for Local Catalogs.................................................................................................................3-189Considerations for Supplier-Hosted Content.................................................................................................3-191Considerations for Marketplace-Hosted Content...........................................................................................3-192Considerations for Security ...........................................................................................................................3-193Summary........................................................................................................................................................3-194

Oracle iProcurement Requisitions .................................................................................................................4-1

Oracle iProcurement Requisitions .................................................................................................................4-3Objectives ......................................................................................................................................................4-4Agenda...........................................................................................................................................................4-5

Procurement Process: Oracle iProcurement...................................................................................................4-6iProcurement Flow ........................................................................................................................................4-7iProcurement Home Page ..............................................................................................................................4-8iProcurement Preferences ..............................................................................................................................4-9

Practice - Set User Preferences..................................................................................................................4-10Solution – Set User Preferences.................................................................................................................4-11

Shop For Goods and Services........................................................................................................................4-14Practice - Creating a Favorites List............................................................................................................4-16Solution – Creating a Favorites List ..........................................................................................................4-17

Basic Shopping Flow.....................................................................................................................................4-20Basic Checkout Flow.....................................................................................................................................4-21Checkout Step-by-Step..................................................................................................................................4-22Review & Submit ..........................................................................................................................................4-24

Practice - Split Cost Across Charge Accounts...........................................................................................4-25Solution – Split Cost Across Charge Accounts .........................................................................................4-26Practice - Specify Different Delivery Information for a Single Item.........................................................4-29Solution – Specify Different Delivery Information for a Single Item .......................................................4-30

Agenda...........................................................................................................................................................4-32Enter iProcurement Users..............................................................................................................................4-33Document Routing Option #1: Employee/Supervisor Relationship ..............................................................4-35Document Routing Option #2: Position Approval Hierarchy........................................................................4-36Run Fill Employee Hierarchy Process...........................................................................................................4-38


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R12 Oracle iProcurement Fundamentals Table of Contentsv

Document Routing Option #3: Oracle Approvals Management....................................................................4-39Give Access to the Users...............................................................................................................................4-41

Guided Demonstration - Scheduling Send Notification Workflows..........................................................4-42My Notifications Region ...............................................................................................................................4-43Center-Led Procurement................................................................................................................................4-44Agenda...........................................................................................................................................................4-46Set up iProcurement Shopping Defaults........................................................................................................4-47Oracle Applications Framework....................................................................................................................4-48

OAF / iProcurement Personalization .............................................................................................................4-49Guided Demonstration - Add Filter Option to Search Results Page..........................................................4-50

Setting Up iProcurement Information Templates ..........................................................................................4-52Practice - Create an Information Template................................................................................................4-53Solution – Create an Information Template...............................................................................................4-54Practice - Submit a Requisition Using an Information Template ..............................................................4-57Solution – Submit a Requisition Using an Information Template.............................................................4-58

Smart Forms ..................................................................................................................................................4-61Internally Sourced Requisitions Overview....................................................................................................4-63Internally Sourced Requisitions Details ........................................................................................................4-65Internally Sourced Requisitions Prerequisites ...............................................................................................4-67

Guided Demonstration - Enter and Submit an Internally Sourced Requisition .........................................4-69Services Procurement Contractor/Service Request ......................................................................................4-70

Oracle Services Procurement.........................................................................................................................4-72Services Procurement: Contingent Labor Flow............................................................................................4-74Oracle Procurement Feature Comparison......................................................................................................4-75Agenda...........................................................................................................................................................4-76Requisition Management Actions..................................................................................................................4-77Copying Requisitions ....................................................................................................................................4-78Canceling Requisitions..................................................................................................................................4-79Change / Resubmit Requisitions....................................................................................................................4-80Requisition Statuses.......................................................................................................................................4-82Requester Change Order................................................................................................................................4-83Requester Change Order Approval................................................................................................................4-85Procure to Pay Lifecycle Tracking ................................................................................................................4-87Agenda...........................................................................................................................................................4-88

Setting Up Oracle iProcurement Responsibility and Function Security........................................................4-89Approval and Document Creation .................................................................................................................4-90Automatic Purchase Order Creation..............................................................................................................4-91Automatic Release Creation ..........................................................................................................................4-92Oracle iProcurement Requisition Approval...................................................................................................4-93Integration with Oracle Approvals Management...........................................................................................4-95Workflows Used by Oracle iProcurement .....................................................................................................4-96PO Create Documents Workflow ..................................................................................................................4-98

Guided Demonstration - Set Values of Key Workflow .............................................................................4-100Accounting Considerations for Oracle iProcurement ...................................................................................4-101PO Account Generator Workflow .................................................................................................................4-102Account Creation Overview ..........................................................................................................................4-103Expense Account Rules.................................................................................................................................4-105

Practice - Create Expense Account Rules..................................................................................................4-106Solution – Create Expense Account Rules ................................................................................................4-107

Tax Calculation .............................................................................................................................................4-110Grants Accounting and Hazard Information..................................................................................................4-111Attachments and Special Requisitions...........................................................................................................4-112

Guided Demonstration - Create iProcurement Buyer Attachment.............................................................4-114Agenda...........................................................................................................................................................4-115Procurement Card Support ............................................................................................................................4-116Procurement Card Flow - Order ...................................................................................................................4-117Procurement Card Flow - Invoice..................................................................................................................4-118


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Procurement Card Flow - Reconciliation ......................................................................................................4-120Setting Up Credit Card Programs in Oracle Payables ...................................................................................4-122Code Sets Window ........................................................................................................................................4-123Card Programs Window ................................................................................................................................4-124GL Account Sets Window.............................................................................................................................4-125Credit Card Profiles Window ........................................................................................................................4-126Credit Cards Window....................................................................................................................................4-127Credit Card Workflows .................................................................................................................................4-128

P-Card Setup for iProcurement......................................................................................................................4-129Practice - Set Up and Use P-Cards ............................................................................................................4-130Solution – Set Up and Use P-Cards ...........................................................................................................4-133

Agenda...........................................................................................................................................................4-145iProcurement Profile Options ........................................................................................................................4-146

Practice - Recognize Requisition Specific Profile Options........................................................................4-147Solution......................................................................................................................................................4-148

Notification Routing Rules ............................................................................................................................4-151Personalizing the Home Page ........................................................................................................................4-152Home Page Logo ...........................................................................................................................................4-153Purchasing News ...........................................................................................................................................4-154Purchasing Policies........................................................................................................................................4-155Descriptive Flex Fields In iProcurement .......................................................................................................4-156

Agenda...........................................................................................................................................................4-158Requisition Implementation Considerations Checklist..................................................................................4-159Important Points to Remember......................................................................................................................4-161Summary........................................................................................................................................................4-162

Oracle iProcurement Receiving......................................................................................................................5-1

Oracle iProcurement Receiving.....................................................................................................................5-3Objectives ......................................................................................................................................................5-4Agenda...........................................................................................................................................................5-5Procurement Process: Oracle iProcurement...................................................................................................5-6Key Functionality of Oracle iProcurement....................................................................................................5-7Oracle iProcurement Receiving.....................................................................................................................5-8Overview of Procurement Receiving.............................................................................................................5-9Oracle iProcurement Receipt Routing ...........................................................................................................5-10

Agenda...........................................................................................................................................................5-11Receiving in Oracle iProcurement.................................................................................................................5-12Receiving Orders in Oracle iProcurement .....................................................................................................5-13Oracle iProcurement Receiving Page ............................................................................................................5-14Receiving Home Page Functions...................................................................................................................5-15iProcurement Receiving Process ...................................................................................................................5-16Finding Your Receipts...................................................................................................................................5-17Oracle iProcurement Receiving.....................................................................................................................5-18

Practice - Receive in iProcurement............................................................................................................5-19Solution – Receive in iProcurement ..........................................................................................................5-20

iProcurement Receiving Process ...................................................................................................................5-23Entering Returns in Oracle iProcurement......................................................................................................5-24iProcurement Receiving Process ...................................................................................................................5-26

Entering Corrections......................................................................................................................................5-27Difference Between Returns and Corrections................................................................................................5-28

Practice - Process a Correction ..................................................................................................................5-29Solution – Process a Correction.................................................................................................................5-30Practice - Process a Return ........................................................................................................................5-31Solution – Process a Return.......................................................................................................................5-32Guided Demonstration - Run the Confirm Receipts Workflow (Required) ..............................................5-34

Receipt Header in Oracle iProcurement ........................................................................................................5-37Receipt Line in Oracle iProcurement.............................................................................................................5-38


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The PO Confirm Receipts Workflow ............................................................................................................5-39Agenda...........................................................................................................................................................5-40Purchasing Receiving Setup ..........................................................................................................................5-41iProcurement Profile Options ........................................................................................................................5-43

Practice - Recognize Receiving Specific Profile Options..........................................................................5-44Solution – Recognize Receiving Specific Profile Options ........................................................................5-45

iProcurement Receipt Function Security .......................................................................................................5-46Agenda...........................................................................................................................................................5-47

Additional Receiving Considerations ............................................................................................................5-48Receiving Comparison ..................................................................................................................................5-49Data Mapping Considerations .......................................................................................................................5-50Data and Reporting Considerations...............................................................................................................5-51Optional Components....................................................................................................................................5-52Receiving Open Interface ..............................................................................................................................5-53Overview of Payment on Receipt ..................................................................................................................5-54Summary........................................................................................................................................................5-55

Oracle iProcurement Setup Steps ..................................................................................................................6-1

Oracle iProcurement Setup Steps ..................................................................................................................6-3Objectives ......................................................................................................................................................6-4Agenda...........................................................................................................................................................6-5Procurement Process: Oracle iProcurement...................................................................................................6-6Oracle iProcurement Integration with Oracle Applications Impact on Setup................................................6-7Oracle iProcurement Setup Overview ...........................................................................................................6-8Agenda...........................................................................................................................................................6-9Oracle Applications Setup Overview ............................................................................................................6-10Oracle Applications Setup Overview - 2 .......................................................................................................6-11Oracle Applications Setup Overview - 3 .......................................................................................................6-12Oracle Applications Setup Overview - 4 .......................................................................................................6-13Agenda...........................................................................................................................................................6-14Oracle iProcurement Setup Overview ...........................................................................................................6-15Perform Oracle iProcurement Specific System Administration Setup ..........................................................6-16Verify Profile Options That Impact Oracle iProcurement: Oracle Applications ...........................................6-17Verify Profile Options That Impact Oracle iProcurement: Oracle Purchasing..............................................6-19Verify Profile Options That Impact Oracle iProcurement .............................................................................6-21

Verify Profile Options That Impact Oracle iProcurement: Continued ..........................................................6-23Practice - Recognize Catalog Specific Profile Options..............................................................................6-25Practice - Recognize Requisition Specific Profile Options........................................................................6-27Solution......................................................................................................................................................6-28Practice - Recognize Receiving Specific Profile Options..........................................................................6-31Solution – Recognize Receiving Specific Profile Options ........................................................................6-32

Requisition Templates ...................................................................................................................................6-33Define Information Templates.......................................................................................................................6-34Set Up Catalog...............................................................................................................................................6-35Agenda...........................................................................................................................................................6-36Additional Implementation Considerations ...................................................................................................6-37Training Considerations ................................................................................................................................6-38Oracle iProcurement Features to Consider ....................................................................................................6-39

Custom Package Implementation ..................................................................................................................6-40Page-Specific Customization.........................................................................................................................6-41Summary........................................................................................................................................................6-42


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R12 Oracle iProcurement Fundamentals Table of Contentsix

Preface

Profile

Before You Begin This Course

• Thorough knowledge of the Oracle E-Business Procure to Pay process.

• Working experience with e Oracle E-Business Procure to Pay products.

Prerequisites

• R12 Oracle Purchasing Fundamentals

How This Course Is Organized

This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations

and written practice sessions reinforce the concepts and skills introduced.


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Related Publications

Oracle Publications

Title Part Number

Oracle Purchasing User's Guide B28669-01

Oracle iProcurement Implementation and Administration Guide B31402-01

Oracle Procurement Buyer's Guide to Punchout and Transparent Punchout B13856-01

Oracle Payables User Guide B25454-01

Additional Publications

• System release bulletins

• Installation and user’s guides

• Read-me files

• International Oracle User’s Group (IOUG) articles

• Oracle Magazine


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Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (ifthere is a glossary)

The algorithm inserts the new key.

Caps andlowercase

Buttons,check boxes,triggers,windows

Click the Executable button.Select the Can’t Delete Card check box.Assign a When-Validate-Item trigger to the ORD block.Open the Master Schedule window.

Courier new,case sensitive(default islowercase)

Code output,directory names,filenames, passwords, pathnames,URLs,

user input,usernames

Code output: debug.set (‘I”, 300);

Directory: bin (DOS), $FMHOME (UNIX)

Filename: Locate the init.ora file.

Password: User tiger as your password.

Pathname: Open c:\my_docs\projects

URL: Go to http://www.oracle.com

User input: Enter 300

Username: Log on as scott

Initial cap Graphics labels(unless the term is a proper noun)

Customer address (but Oracle Payables)

Italic Emphasized wordsand phrases,titles of books andcourses,variables

Do not save changes to the database.For further information, see Oracle7 Server SQL Language Reference Manual.

Enter [email protected], where user_id is thename of the user.

Quotation

marks

Interface elements

with long namesthat have onlyinitial caps;lesson and chaptertitles in cross-references

Select “Include a reusable module component” and click Finish.

This subject is covered in Unit II, Lesson 3, “Working withObjects.”

Uppercase SQL columnnames, commands,functions, schemas,table names

Use the SELECT command to view information stored in theLAST_NAMEcolumn of the EMP table.

Arrow Menu paths Select File > Save.

Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time:[Alternate], [F], [D]

Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]


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Typographic Conventions in Code

Convention Element Example

Caps andlowercase

Oracle Formstriggers

When-Validate-Item

Lowercase Column names,table names

SELECT last_nameFROM s_emp;

Passwords DROP USER scottIDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER (OG_GET_LAYER (‘prod_pie_layer’))

Lowercaseitalic

Syntax variables CREATE ROLE role

Uppercase SQL commands andfunctions

SELECT useridFROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct youthrough Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoice then Entry then Invoice BatchesSummary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab


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Typographical Conventions in Oracle Application Help System Paths

This course uses a “navigation path” convention to represent actions you perform to find pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system

window.


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Procure to Pay Lifecycle OverviewChapter 1 - Page 1

Procure to Pay LifecycleOverview

Chapter 1


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Procure to Pay Lifecycle Overview


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Objectives


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Procure to Pay Lifecycle

Procure to Pay Lifecycle

Sourcing

• Request for quote

• Supplier selection

• Contract negotiations and awards

• Catalog content management

Ordering

• Requisition and purchase order generation

• Purchase order management and fulfillment

• Payment

Reporting and Analysis

• Supplier performance

• Commodity analysis

• Internal compliance

• Robust intelligence gathering


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• Decision support

• Process functionality


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Oracle Procure to Pay Process

Oracle Procure to Pay Process

Demand

The procurement process generates and manages requests for the purchase of goods. Thedemand for purchase items may be a one-time event or may recur in either predictable orrandom time intervals.

Source

The procurement sourcing process covers the business activities related to the search,qualification, and selection of suitable suppliers for requested goods and services.

Order

The procurement ordering process includes purchase order placement by the buyingorganization and purchase order execution by the supplying organization.

Receive

The receipt process acknowledges that a purchase order has been duly executed. For orders of physical goods, it will typically include the receipt, inspection and delivery of the goods toinventory or to another designated location. For orders of services, it will typically consist of a


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notification from the requester or the approving person that the service has been performed asagreed.

Pay

The payment process consists of those activities involved in the payment for ordered goods andservices.


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Demand: Requisitions

Demand: Requisitions

Requisitions represent demand for goods or services. Whether you want to provide onlinerequisitions to everyone in the organization or limit the number of users who have access to thesystem, Oracle Purchasing is flexible enough to meet the needs of your organization. Withonline requisitions, you can centralize your purchasing department, source your requisitionwith the best suppliers, and ensure that you obtain the appropriate management approval beforecreating purchase orders from requisitions.

Requisitions for goods and services:

• Are generated by applications like Inventory, Work in Process (WIP), Advanced SupplyChain Planning (ASCP) and Order Management

• May be entered manually through Oracle Purchasing windows

• May be entered using Oracle iProcurement

• May be imported from external systems

With Oracle Purchasing, you can:


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• Create, edit, and review requisition information on-line. You can enter suggested supplierinformation, delivery instructions, multiple accounting distributions, and notes to buyers,approvers, and receivers.

• Review the current status and action history of your requisitions. You always know whoapproves requisitions and whether they are in the approval, purchasing, receiving, ordelivery stage.

• Route requisitions according to your approval structure. You can set authorization limits by amount, charge account, item category, and location.

• Review and approve requisitions that need your approval. You can see the full requisitiondetail and review the action history before you approve a requisition.

• Print requisitions (with status Approved, Cancelled, Rejected, In Process, Pre-Approved,and Returned) for off-line review and approval. You can always be able to track the statusof requisitions through the approval process.

• Automatically source requisitions from outstanding blanket purchase agreements orquotations you have received from suppliers.

• Create requisitions quickly and easily for commonly purchased items.

• Provide attachments as notes on requisition headers and lines.• Assign requisition lines to buyers and review buyer assignments for requisition lines.

• Forward all requisitions awaiting approval from one approver to an alternate approver.Within your security and approval constraints, you can reroute requisitions from oneapprover to another whenever you want.

• Source goods from your own inventory with internal requisitions.


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Source: RFQs and Quotations

Source: RFQs and Quotations

Oracle Purchasing provides you with request for quotation (RFQ), and quotation features tohandle your sourcing needs. You can create an RFQ from requisitions, match supplierquotations to your RFQ, and automatically copy quotation information to purchase orders.Oracle Purchasing provides complete reporting to control your requests for quotations andevaluate supplier responses.

Quotations can be:

• Entered manually

• Copied from an RFQ

• Imported using the Purchasing Documents Open Interface

• Imported using the e-Commerce Gateway


• Identify requisitions that require supplier quotations and automatically create an RFQ.

• Create an RFQ with or without approved requisitions so that you can plan ahead for yourfuture procurement requirements.


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• Record supplier quotations from a catalog, telephone conversation, or response from yourrequest for quotation. You can also receive quotations electronically.

• Review, analyze, and approve supplier quotations that you want available to reference on purchase orders and requisitions. You can evaluate your suppliers based on quotationinformation.

• Receive automatic notification when a quotation or request for quotation approaches

expiration.• Review quotation information online when creating purchase orders or requisitions and

copy specific quotation information to a purchase order or requisition.

• Source the items for which you negotiated purchase agreements automatically. If youcreated sourcing rules and approved supplier list entries for the items, supplier informationcan be entered automatically in the Requisitions window when you create requisitions.You can also place supplier information for items onto blanket purchase order releases.

With Oracle Purchasing and Oracle Sourcing, you can:

• Initiate a buyers auction in Oracle Sourcing based on requisitions in Oracle Purchasing.

• Create RFQs and negotiations in Oracle Sourcing that result in purchase orders and

purchase agreements in Oracle Purchasing.• Collaborate on-line directly with suppliers to get the best terms and prices.

With Oracle Purchasing and Oracle iSupplier Portal, you can:

• Enable suppliers to query RFQs and manufacturing planning statuses.

• Enable suppliers to maintain their production capabilities in Oracle Purchasing.


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Suppliers

Suppliers

You must define a supplier before performing most activities within Oracle Purchasing andPayables. Once defined you can:

• Optionally enter a recommended supplier on a requisition

• Use a supplier to issue a request for quotation

• Use that same supplier when you enter a quotation

• Use supplier information for purchase orders

• Receive goods or services from suppliers

• Return goods to suppliers

• Pay the supplier for the goods or services purchasedSet up suppliers to record information about individuals and companies you purchase goodsand services from. You can also enter employees you reimburse for expense reports. You candesignate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement cardsites. For example, for a single supplier, you can buy from several different sites and send payments to several different sites. Most supplier information automatically defaults to all


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supplier sites to facilitate supplier site entry. However, you can override these defaults andhave unique information for each site.


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Purchase Orders

Purchase Orders

Oracle Purchasing supports four types of purchase orders: standard, blanket, contract and planned. There are several methods that can be used to create purchase orders. You canmanually create purchase orders or search approved requisitions and add them to purchaseorders. Standard purchase orders can be imported through the Purchasing Documents OpenInterface in a status of Incomplete or Approved. You can automate purchase documentcreation using the PO Create Documents workflow to automatically create a blanket purchaseagreement release or a standard purchase order upon approval of a requisition.

Once purchase orders are created, they may be submitted for approval. The approval processchecks to see if the submitter has sufficient authority to approve the purchase order. Once the

document is approved, it may be sent to your supplier using a variety of methods including: printed document, EDI, fax, e-mail, Oracle iSupplier Portal and XML. Once the purchaseorder or release is sent to your supplier, they are authorized to ship goods at the times and tothe locations that have been agreed upon.

Purchase documents may be created:

• By buyers using the AutoCreate window

• By importing them using the Purchasing Documents Open Interface


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• Automatically, by the Create Releases program (blanket releases)

• Automatically, by Workflow (blanket releases or standard purchase orders)


• Review all of your purchases with your suppliers to negotiate better discounts.

• Create purchase orders simply by entering a supplier and item details.

• Create standard purchase orders and blanket releases from both on-line and paperrequisitions.

• Create accurate and detailed accounting information so that you charge purchases to theappropriate departments.

• Review the status and history of your purchase orders at any time for all the informationyou need.

• Record supplier acceptances of your purchase orders. You always know whether yoursuppliers have received and accepted your purchase order terms and conditions.

• Copy existing purchase orders.

• Manage global supplier agreements (blankets and contracts) from a centralized business

unit.• Manage approved contractual terminology from a library of terms using Oracle

Procurement Contracts.


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Receiving

Receiving

Using Oracle Purchasing, you can process receipts from suppliers, receipts from otherwarehouses or inventory organizations, in-transit shipments and receipts due to customerreturns. You can search for expected receipts based on a purchase order or a customer returnrecorded in Oracle Order Management and then process them to their final destination whetherit is inventory, expense or shop floor. Oracle Purchasing lets you control the items you orderthrough receiving, inspection, transfer, and internal delivery. You can use these features toindicate the quantity, quality, and internal delivery of the items you receive.


• Use routing controls at the organization, supplier, item, or order level to enforce material

movement through receiving. For example, you can require inspection for some items anddock-to-stock receipt for others.

• Define receiving tolerances at the organization, supplier, item, and order level, with thelowest level overriding previous levels. You can define tolerances for receipt quantity,on-time delivery, and receiving location. You can assign looser tolerances to low-valueitems. You can set enforcement options to ignore, warn the user, or reject transactionsthat violate the tolerances.


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• Use blind receiving to improve accuracy in the receiving process. With this option, thequantity due for each shipment does not show and quantity control tolerances are ignored.

• Use Express and Cascade receiving to process certain types of receipts more quickly.

• Use Advance Shipping Notices (ASNs) to save time in processing receipts.

• Record receipt of unordered items based on your item, supplier, or organization defaults.For example, if your organization does not allow receipt of unordered items, you should

not be able to enter a receipt unless it can be matched to a purchase order shipment.

• Record the receipt of predefined substitute items.

• Record the receipt of services and labor.

With Oracle iProcurement, you can:

• Receive orders from your desktop, bypassing the need for receiving departmentinteraction.


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Invoicing

Invoicing

Once you’ve received goods or service from your supplier, you’ll also receive an invoice.Using Oracle Payables you can record invoices in a number of different ways.

With Oracle Payables you can:

• Enter invoices manually, either individually or in batches.

• Use the Invoice Gateway for rapid, high-volume entry of standard invoices and creditmemos that are not complex and do not require extensive online validation.

• Automate invoice creation for periodic invoices using the Recurring Invoice functionality.

• Use Oracle iExpenses to enter employee expense reports using a web browser.

• Record credit card/procurement card invoices from transactions the credit card issuersends to you in a flat file.

• Record Oracle Project related expense reports.

• Import EDI invoices processed with the Oracle e-Commerce Gateway.

• Import lease invoices transferred from Oracle Property Manager.

• Match invoices to purchase orders to ensure you only pay what you’re supposed to be paying for.


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Payment

Payment

Once invoices have been validated, they can be selected for payment. Oracle Payables providesthe information that you need to make effective payment decisions, stay in control of paymentsto suppliers and employees, and keep your accounting records up-to-date so that you alwaysknow your cash position. Oracle Payables handles every form of payment, including checks,manual payments, wire transfers, EDI payments, bank drafts, and electronic funds transfers.Oracle Payables is integrated with Oracle Cash Management to support automatic or manualreconciliation of your payments with bank statements sent by the bank.

With Oracle Payables, you can:

• Ensure duplicate invoice payments never occur

• Pay only invoices that are due, and automatically take the maximum discount available

• Select invoices for payment using a wide variety of criteria

• Record stop payments

• Record void payments

• Review information on line on the status of every payment

• Process positive pay


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Overview of Oracle Application Integration

Overview of Application Integration

This slide attempts to capture the complex interaction of Oracle Applications resulting from theProcure to Pay process. The key Oracle Applications that are integrated to perform this processare described below.

Inventory

Order Management and Purchasing, as well as other Oracle applications can use items definedin Oracle Inventory. If the item is designated as a planned item, demand can be generated inthe form of requisitions and sent to Oracle Purchasing where purchase orders or blanketreleases can be created to replenish inventory levels.

Order Management

Customer purchase orders can be recorded in Oracle Order Management. Goods are shipped tocustomers as defined by the sales order. After goods are shipped, customer invoices are sent toOracle Receivables and inventory levels are updated. Any customers that are set up in OrderManagement are shared with Receivables and vice versa.

Receivables

Oracle Receivables maintains information about invoices received from Oracle OrderManagement and other sources. Invoices are sent to customers who respond by sending


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payments. You can use Receivables to record receipts against customer accounts.Receivables, revenue and cash receipts are interfaced to Oracle General Ledger.

Purchasing

Oracle Purchasing captures accounting information on requisitions and purchase orders.Purchase orders are sent to suppliers who respond by delivering goods or services and sendinginvoices that are processed in Oracle Payables. During the accounting period, accruals for

goods set to accrue a liability on receipt are sent to Oracle General Ledger. At the end of theaccounting period, accruals for goods and services set to accrue a liability at period end can besent to General Ledger. Any suppliers set up in Purchasing are shared with Payables and viceversa.

Payables

Supplier invoices are entered into Oracle Payables and if appropriate, matched to purchaseorders in Oracle Purchasing. During the matching process, the invoice distribution is copiedfrom the purchase order (in the case of an expense) or the appropriate liability account (in thecase of an inventory item). Payables, expenses and payments are interfaced to Oracle GeneralLedger. Invoices for asset purchases can be interfaced to Oracle Assets.

AssetsAssets from Payables and other sources are maintained in Oracle Assets. Assets are added, processed, depreciated and eventually retired. At the end of each asset period, accountinginformation is interfaced directly to Oracle General Ledger.

General Ledger

Oracle General Ledger receives accounting information from many Oracle applications. Onceaccounting information is imported, journals can be posted and account balances updated.When implementing Oracle Applications, creating a set of books consisting of an accountingcalendar, currency and chart of accounts is one of the first steps that must be completed beforesetting up other applications.


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Procure to Pay Lifecycle OverviewCh