student guide1

Oracle Internal & OAI Use Only

11i Purchasing for End Users Student Guide • Volume 1

D16657GC10

Edition 1.0

April 2003

D37959


Copyright © Oracle Corporation, 2003. All rights reserved.

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Author

Paul Scott, Todd Round, Deanna McMillian

Technical Contributors and Reviewers

Terri North, Jim Ammons, Vic Mitchell, Rachel Korte, Shridhar Acharya

This book was published using: oracletutor



11i Purchasing for End Users Table of Contents i

Table of Contents

Procure to Pay Purchasing Overview ............................................................................................................1-1 Procure to Pay Purchasing Overview ............................................................................................................1-2 Procure to Pay Lifecycle................................................................................................................................1-3 Objectives ......................................................................................................................................................1-4 Agenda...........................................................................................................................................................1-5 Overview of Purchasing Process ...................................................................................................................1-6 Overview of Requisitions ..............................................................................................................................1-8 Overview of Requisition to Order Document................................................................................................1-10 Overview of Purchase Order Process ............................................................................................................1-11 Overview of Receiving Process.....................................................................................................................1-13 Agenda...........................................................................................................................................................1-16 Overview of Purchasing Integration ..............................................................................................................1-17 Purchasing Integration with General Ledger .................................................................................................1-22 Purchasing Integration with Payables............................................................................................................1-23 Purchasing Integration with Cash Management ............................................................................................1-24 Purchasing Integration with Projects .............................................................................................................1-25 Purchasing Integration with ASCP/MRP ......................................................................................................1-26 Purchasing Integration with e-Commerce Gateway ......................................................................................1-27 Purchasing Integration with Human Resources.............................................................................................1-28 Purchasing Integration with Quality ..............................................................................................................1-29 Purchasing Integration with Inventory ..........................................................................................................1-30 Purchasing Integration with Alert..................................................................................................................1-31 Purchasing Integration with Workflow..........................................................................................................1-32 Purchasing Integration with iSupplier Portal.................................................................................................1-34 Purchasing Integration with Assets................................................................................................................1-36 Purchasing Integration with WIP...................................................................................................................1-37 Purchasing Integration with Order Management ...........................................................................................1-38 Summary........................................................................................................................................................1-39

Suppliers...........................................................................................................................................................2-1 Suppliers ........................................................................................................................................................2-2 Procure to Pay Lifecycle................................................................................................................................2-3 Objectives ......................................................................................................................................................2-4 Agenda...........................................................................................................................................................2-5 How Oracle Products Use Supplier Information ...........................................................................................2-6 Overview of Suppliers ...................................................................................................................................2-7 Flow of Default Values..................................................................................................................................2-8 Agenda...........................................................................................................................................................2-9 Supplier Record Structure..............................................................................................................................2-10 Entering Basic Supplier Header Information.................................................................................................2-11 Supplier Information - General Region .........................................................................................................2-13 Supplier Information - Classification Region ................................................................................................2-14 Supplier Information - Accounting Region ...................................................................................................2-16 Supplier Information - Control Region..........................................................................................................2-17 Supplier Information - Payment Region........................................................................................................2-19 Supplier Information - Bank Accounts Region .............................................................................................2-21 Supplier Information - EDI Region ...............................................................................................................2-22 Supplier Information - Invoice Tax Region...................................................................................................2-23 Supplier Information - Withholding Tax Region...........................................................................................2-24 Supplier Information - Tax Reporting Region...............................................................................................2-25 Supplier Information - Purchasing Region ....................................................................................................2-26 Supplier Information - Receiving Region......................................................................................................2-28 Supplier Site Settings.....................................................................................................................................2-30



11i Purchasing for End Users Table of Contents ii

Supplier Level Versus Site Level Entry ........................................................................................................2-31 Entering Basic Supplier Site Information.....................................................................................................2-32 Supplier Site Information - General Region ..................................................................................................2-33 Supplier Site Information - Contacts Region.................................................................................................2-35 Supplier Site Information - Accounting Region ............................................................................................2-36 Supplier Site Information - EDI Region ........................................................................................................2-37 Supplier Site Information - Tax Reporting Region........................................................................................2-38 Supplier Site Information - Purchasing Region .............................................................................................2-39

Guided Demonstration - Create a New Employee (Required)...................................................................2-40 Guided Demonstration - Run the Fill Employee Hierarchy Process (Required) .......................................2-42 Guided Demonstration - Create a New Responsibility (Required)............................................................2-43 Guided Demonstration - Create a New User (Required) ...........................................................................2-45 Guided Demonstration - Add Notifications to your Personal Home Page (Required) ..............................2-47 Guided Demonstration - Set Yourself up as a Buyer (Required)...............................................................2-48 Guided Demonstration - Create a Supplier (Required)..............................................................................2-49 Practice - Define a Supplier .......................................................................................................................2-53 Solution - Define a Supplier ......................................................................................................................2-54 Practice - Adjust a Supplier Site ................................................................................................................2-62 Solution - Adjust a Supplier Site ...............................................................................................................2-63

Maintaining Supplier and Supplier Site Information.....................................................................................2-66 Avoiding Duplicate Suppliers........................................................................................................................2-67 Merging Suppliers .........................................................................................................................................2-69 Data Example - Supplier Merge ....................................................................................................................2-71 Merging Suppliers .........................................................................................................................................2-72 Agenda...........................................................................................................................................................2-73 Reports...........................................................................................................................................................2-74 Summary........................................................................................................................................................2-77

Locations, Organizations, Units of Measure and Items ...............................................................................3-1 Locations, Organizations, Units of Measure and Items .................................................................................3-2 Agenda...........................................................................................................................................................3-3 What Is an Item?............................................................................................................................................3-4 Oracle Applications Use Items ......................................................................................................................3-5 How Do Oracle Applications Use Items?......................................................................................................3-6 Item Attributes...............................................................................................................................................3-8 Items Have Statuses Which Represent the Life Cycle of the Item ................................................................3-10 Item Attributes Used in Item Status...............................................................................................................3-12 Item Master Organization and Child Organizations ......................................................................................3-14 Creating an Item ............................................................................................................................................3-16 Setup, Define and Maintain Items .................................................................................................................3-17 Describing Attribute Control at Master Level ...............................................................................................3-20 Describing Attribute Control at Child Level .................................................................................................3-22 Describing Item Status Attribute Controls.....................................................................................................3-24 Describing Status Attribute Dependencies ....................................................................................................3-26 Describing Item Attributes - Inventory..........................................................................................................3-27 Describing Item Attributes - Purchasing .......................................................................................................3-31 Describing Item Attributes - Receiving .........................................................................................................3-36

Guided Demonstration - Create an Expense Item (Required) ...................................................................3-39 Guided Demonstration - Create an Inventory Item (Required)..................................................................3-41 Guided Demonstration - Create an Item for a Routinely Purchased Asset (Required)..............................3-43 Practice - Create Items...............................................................................................................................3-45 Solution - Create Items ..............................................................................................................................3-48

Define Item Relationships - Purchasing ........................................................................................................3-56 Agenda...........................................................................................................................................................3-58 Describing Item Templates............................................................................................................................3-59 Creating Item Templates ...............................................................................................................................3-60 Using Item Templates....................................................................................................................................3-62



11i Purchasing for End Users Table of Contents iii

Example of Using a Template .......................................................................................................................3-63 Additional Setup Considerations ...................................................................................................................3-64 Summary........................................................................................................................................................3-66

RFQs and Quotations......................................................................................................................................4-1 RFQs and Quotations.....................................................................................................................................4-2 Procure to Pay Lifecycle................................................................................................................................4-3 Objectives ......................................................................................................................................................4-4 Agenda...........................................................................................................................................................4-5 RFQs and Quotations.....................................................................................................................................4-6 Agenda...........................................................................................................................................................4-7 Request for Quotation....................................................................................................................................4-8 RFQ Lifecycle ...............................................................................................................................................4-10 Send Notifications .........................................................................................................................................4-11 RFQ Types.....................................................................................................................................................4-12 Supplier List ..................................................................................................................................................4-13

Guided Demonstration - Create a Supplier List (Required).......................................................................4-14 Practice - Create a Supplier List ................................................................................................................4-15 Solution - Create a Supplier List................................................................................................................4-16

RFQ Structure................................................................................................................................................4-18 RFQ Header...................................................................................................................................................4-19 RFQ Lines .....................................................................................................................................................4-21 RFQ Price Breaks/Shipments ........................................................................................................................4-23

Guided Demonstration - Create a Catalog RFQ (Required) ......................................................................4-24 Practice - Create a Catalog RFQ................................................................................................................4-27 Solution - Create a Catalog RFQ ...............................................................................................................4-31

Agenda...........................................................................................................................................................4-44 Quotations......................................................................................................................................................4-45 Quotation Lifecycle .......................................................................................................................................4-47 Send Notifications .........................................................................................................................................4-48 Quotation Types ............................................................................................................................................4-49 Quotation Structure........................................................................................................................................4-50 Quotation Header...........................................................................................................................................4-51 Quotation Lines .............................................................................................................................................4-53 Quotation Price Breaks/Shipments ................................................................................................................4-55 Quotation Approvals......................................................................................................................................4-56

Guided Demonstration - Create a Catalog Quote from an RFQ (Required) ..............................................4-57 Guided Demonstration - Schedule the Send Notifications for Purchasing Documents Process (Required)...................................................................................................................................................................4-60 Practice - Create a Catalog Quote from an RFQ........................................................................................4-61 Solution - Create a Catalog Quote from an RFQ.......................................................................................4-63

Agenda...........................................................................................................................................................4-68 Reports...........................................................................................................................................................4-69 Summary........................................................................................................................................................4-71

Approved Supplier Lists and Sourcing Rules ...............................................................................................5-1 Approved Supplier Lists and Sourcing Rules................................................................................................5-2 Procure to Pay Lifecycle................................................................................................................................5-3 Objectives ......................................................................................................................................................5-4 Agenda...........................................................................................................................................................5-5 Approved Supplier Lists ................................................................................................................................5-6 Supplier Statuses ...........................................................................................................................................5-7

Guided Demonstration - Create an Approved Supplier List Status (Required) .........................................5-9 Practice - Create an Approved Supplier List Status...................................................................................5-10 Solution - Create an Approved Supplier List.............................................................................................5-11

ASL Common Header Attributes ..................................................................................................................5-13 ASL Header Attributes - Item........................................................................................................................5-15 ASL Header Attributes - Commodity............................................................................................................5-16



11i Purchasing for End Users Table of Contents iv

Supplier-Commodity/Item Attributes ............................................................................................................5-18 Supplier-Commodity/Item Attributes Source Document ..............................................................................5-21 Supplier-Commodity/Item Attributes Supplier Scheduling...........................................................................5-23 Supplier-Commodity/Item Attributes Planning Constraints..........................................................................5-25

Guided Demonstration - Require an Approved Supplier for an Item (Required) ......................................5-27 Guided Demonstration - Create an Approved Supplier List (Required)....................................................5-29 Practice - Require an Approved Supplier for an Item................................................................................5-31 Solution - Require an Approved Supplier for an Item ...............................................................................5-33 Practice - Create an Approved Supplier List .............................................................................................5-38 Solution - Create an Approved Supplier List.............................................................................................5-40

Agenda...........................................................................................................................................................5-45 Sourcing Rules Overview..............................................................................................................................5-46 Sourcing Rules...............................................................................................................................................5-47 Oracle Products That Use Sourcing Rules.....................................................................................................5-49 Create a Sourcing Rule ..................................................................................................................................5-50 Create a Sourcing Rule Assignment ..............................................................................................................5-51 Levels of Sourcing Rule Assignments...........................................................................................................5-53 Sourcing Rules with an ASL Source Document............................................................................................5-54 Sourcing Rules without an ASL Source Document.......................................................................................5-55 Default Sourcing Information to Requisitions...............................................................................................5-56 Default Sourcing Information to Standard Purchase Orders .........................................................................5-57

Guided Demonstration - Create a Sourcing Rule and a Sourcing Rule Assignment (Required) ...............5-58 Guided Demonstration - Enable Automatic Document Sourcing (Required)............................................5-62 Practice - Create a Sourcing Rule and a Sourcing Rule Assignment.........................................................5-64 Solution - Create a Sourcing Rule and a Sourcing Rule Assignment ........................................................5-67 Practice - Enable Automatic Document Sourcing .....................................................................................5-72 Solution - Enable Automatic Document Sourcing.....................................................................................5-73

Summary........................................................................................................................................................5-74 Requisitions ......................................................................................................................................................6-1

Requisitions ...................................................................................................................................................6-2 Procure to Pay Lifecycle................................................................................................................................6-3 Objectives ......................................................................................................................................................6-4 Agenda...........................................................................................................................................................6-5 Where Purchase Requisitions Fit...................................................................................................................6-6 Requisition Lifecycle.....................................................................................................................................6-7 Send Notifications .........................................................................................................................................6-8 Agenda...........................................................................................................................................................6-9 Requisition Structure .....................................................................................................................................6-10 Requisition Preferences .................................................................................................................................6-11 Requisition Header ........................................................................................................................................6-13 Requisition Line ............................................................................................................................................6-15

Guided Demonstration - Create a Purchase Requisition (Required)..........................................................6-19 Practice - Create a Purchase Requisition ...................................................................................................6-21 Solution - Create a Purchase Requisition...................................................................................................6-23

Agenda...........................................................................................................................................................6-30 Supplier Item Catalog....................................................................................................................................6-31 Using the Supplier Item Catalog....................................................................................................................6-32

Guided Demonstration - Create a Requisition Template (Required).........................................................6-33 Guided Demonstration - Use the Supplier Item Catalog to Create a Requisition (Required)....................6-35 Practice - Create a Requisition Template...................................................................................................6-37 Solution - Create a Requisition Template..................................................................................................6-39 Practice - Use the Supplier Item Catalog to Create a Requisition .............................................................6-42 Solution - Use the Supplier Item Catalog to Create a Requisition.............................................................6-43

Requisition Distribution ................................................................................................................................6-47 Allocating Costs to Multiple Charge Accounts .............................................................................................6-49 Submitting Requisitions for Approval...........................................................................................................6-50



11i Purchasing for End Users Table of Contents v

Approving Requisitions.................................................................................................................................6-51 Requisition Templates ...................................................................................................................................6-52 Requisition Actions .......................................................................................................................................6-53 Agenda...........................................................................................................................................................6-54 Reports...........................................................................................................................................................6-55 Summary........................................................................................................................................................6-57

Purchase Orders ..............................................................................................................................................7-1 Purchase Orders.............................................................................................................................................7-2 Procure to Pay Lifecycle................................................................................................................................7-3 Objectives ......................................................................................................................................................7-4 Agenda...........................................................................................................................................................7-5 Purchase Order Types....................................................................................................................................7-6 Purchase Orders.............................................................................................................................................7-8 Purchase Order Components and Record Structure.......................................................................................7-9 Overview of AutoCreated Purchase Orders...................................................................................................7-11 Agenda...........................................................................................................................................................7-13 Overview of Standard Purchase Orders.........................................................................................................7-14 Simplify the Entry of Purchase Orders: Preferences .....................................................................................7-15 Standard Purchase Order Elements................................................................................................................7-17 Structure of a Simple Standard Purchase Order ............................................................................................7-18 Structure of a More Complex Standard Purchase Order................................................................................7-19 Entering Standard Purchase Order Header Information ................................................................................7-20 Standard Purchase Orders Terms and Conditions .........................................................................................7-22 Entering Standard Purchase Order Lines Tabbed Regions............................................................................7-24 Standard Purchase Order Line Items Tabbed Region....................................................................................7-25 Standard Purchase Order Line Price Reference Tabbed Region ...................................................................7-27 Standard Purchase Order Line Reference Documents Tabbed Region..........................................................7-28 Standard Purchase Order Line More Tabbed Region ....................................................................................7-30 Entering Standard Purchase Order Shipments - Tabbed Regions..................................................................7-31 Standard Purchase Order Shipment Shipments Tabbed Region ....................................................................7-32 Standard Purchase Order Shipment More Tabbed Region ............................................................................7-34 Standard Purchase Order Shipment Status Tabbed Region ...........................................................................7-36 Standard Purchase Order Shipment Receiving Controls Button....................................................................7-37 Entering Standard Purchase Order Distributions - Tabbed Regions..............................................................7-38 Standard Purchase Order Distribution Destination Tabbed Region ..............................................................7-39 Standard Purchase Order Distribution More Tabbed Region ........................................................................7-41 Standard Purchase Order Distribution Project Tabbed Region......................................................................7-42 Approve Standard Purchase Order ................................................................................................................7-43

Guided Demonstration - Create a Standard Purchase Order (Required) ...................................................7-44 Practice - Create a Standard Purchase Order .............................................................................................7-50 Solution - Create a Standard Purchase Order.............................................................................................7-52

Agenda...........................................................................................................................................................7-64 When to Use a Blanket Purchase Agreement ................................................................................................7-65 Blanket Releases............................................................................................................................................7-66 Blanket Purchase Agreements Additional Information Entered....................................................................7-68 Blanket Purchase Agreements Additional Information - Header ..................................................................7-69 Blanket Purchase Agreements Additional Information - Lines .....................................................................7-71 Blanket Purchase Agreements Additional Information - Price Breaks..........................................................7-73 Notification Controls .....................................................................................................................................7-75 Approve Blanket Purchase Agreement..........................................................................................................7-77

Guided Demonstration - Create a Blanket Purchase Agreement (Required).............................................7-78 Blanket Purchase Agreement and Blanket Releases......................................................................................7-81 Blanket Releases Structure - Header .............................................................................................................7-82 Blanket Releases Structure Shipments and Distributions ..............................................................................7-84

Guided Demonstration - Create a Blanket Release (Required) .................................................................7-85 Practice - Create a Blanket Purchase Agreement and Blanket Release .....................................................7-86



11i Purchasing for End Users Table of Contents vi

Solution - Create a Blanket Purchase Agreement and Blanket Release ....................................................7-88 Agenda...........................................................................................................................................................7-98 When to Use a Contract Purchase Agreement...............................................................................................7-99 Contract Purchase Agreements Additional Information Entered...................................................................7-100 Standard Purchase Order Line Reference Documents Tabbed Region..........................................................7-102

Guided Demonstration - Create a Contract Purchase Agreement (Required)............................................7-104 Practice - Create a Contract Purchase Agreement .....................................................................................7-106 Solution - Create a Contract Purchase Agreement.....................................................................................7-107

Agenda...........................................................................................................................................................7-113 Purchase Order Inquiry..................................................................................................................................7-114 Modifying Purchase Orders...........................................................................................................................7-116 Printing Purchase Orders ...............................................................................................................................7-118 Creating Purchase Order Revisions ...............................................................................................................7-119 Archiving Purchase Orders............................................................................................................................7-120 Purchase Order Statuses - Typical Cycle.......................................................................................................7-121 Entering Purchase Order Acceptances...........................................................................................................7-124 Workflow Notifications.................................................................................................................................7-126 Copying Purchase Orders ..............................................................................................................................7-127 Agenda...........................................................................................................................................................7-129 Reports...........................................................................................................................................................7-130 Summary........................................................................................................................................................7-134

Automatic Document Creation.......................................................................................................................8-1 Automatic Document Creation ......................................................................................................................8-2 Procure to Pay Lifecycle................................................................................................................................8-3 Objectives ......................................................................................................................................................8-4 Agenda...........................................................................................................................................................8-5 Creating Purchase Documents from Requisitions .........................................................................................8-6 Benefits of Using AutoCreate........................................................................................................................8-8 Overview of AutoCreate................................................................................................................................8-9 Automatic Creation Mode .............................................................................................................................8-11 Find Requisition Lines...................................................................................................................................8-12 Select Document Creation Criteria ................................................................................................................8-14 Select Requisition Lines ................................................................................................................................8-16 Select Automatic Creation Mode...................................................................................................................8-17 Autocreate New Document Window.............................................................................................................8-18 Manual Creation Mode..................................................................................................................................8-19 Add to Existing Document ............................................................................................................................8-20 Modify Requisition Lines..............................................................................................................................8-21 Return Requisition Lines ...............................................................................................................................8-22

Guided Demonstration - Return a Requisition (Required) ........................................................................8-23 Guided Demonstration - AutoCreate a Purchase Order (Required)...........................................................8-25 Practice - Return a Requisition ..................................................................................................................8-26 Solution - Return a Requisition .................................................................................................................8-29 Practice - AutoCreate a Purchase Order ....................................................................................................8-38 Solution - AutoCreate a Purchase Order....................................................................................................8-39

Summary........................................................................................................................................................8-42 Receiving ..........................................................................................................................................................9-1

Receiving.......................................................................................................................................................9-2 Procure to Pay Lifecycle................................................................................................................................9-3 Objectives ......................................................................................................................................................9-4 Agenda...........................................................................................................................................................9-5 Receiving.......................................................................................................................................................9-6 Overview of Receiving Locations .................................................................................................................9-8 Agenda...........................................................................................................................................................9-9 Overview of Receipt Routing ........................................................................................................................9-10 Direct Delivery ..............................................................................................................................................9-11



11i Purchasing for End Users Table of Contents vii

Standard Receipt............................................................................................................................................9-12 Inspection Required.......................................................................................................................................9-13 Agenda...........................................................................................................................................................9-14 Receipt Processing Methods..........................................................................................................................9-15 Standard Receipt............................................................................................................................................9-17 Express Receipt .............................................................................................................................................9-18 Cascade Receipt.............................................................................................................................................9-19 ASNs and ASBNs..........................................................................................................................................9-20 Receiving in iProcurement ............................................................................................................................9-21 Receiving Open Interface ..............................................................................................................................9-22 Finding Expected Receipts ............................................................................................................................9-23 Receipt Header ..............................................................................................................................................9-25 Receipt Line...................................................................................................................................................9-27

Guided Demonstration - Create a Standard Purchase Order (Required) ...................................................9-29 Guided Demonstration - Create a Standard Receipt (Required) ................................................................9-34 Guided Demonstration - Create an Express Receipt (Required) ...............................................................9-36 Guided Demonstration - Create a Cascade Receipt (Required).................................................................9-38 Practice - Create Items...............................................................................................................................9-40 Solution - Create Items ..............................................................................................................................9-43 Practice - Create a Standard Purchase Order .............................................................................................9-51 Solution - Create a Standard Purchase Order.............................................................................................9-54 Practice - Create a Standard Receipt..........................................................................................................9-61 Solution - Create a Standard Receipt .........................................................................................................9-63 Practice - Create an Express Receipt .........................................................................................................9-65 Solution - Create an Express Receipt.........................................................................................................9-67 Practice - Create a Cascade Receipt ..........................................................................................................9-69 Solution - Create a Cascade Receipt..........................................................................................................9-71

Control the Receiving Transaction Processor................................................................................................9-74 Receiving Tolerances ....................................................................................................................................9-76 Control Numbers ...........................................................................................................................................9-77 Agenda...........................................................................................................................................................9-78 Substitute Receipts ........................................................................................................................................9-79 Unordered Receipts .......................................................................................................................................9-80 Overview of Returns and Corrections ...........................................................................................................9-81 Entering Returns ............................................................................................................................................9-82 Entering Corrections......................................................................................................................................9-83 Difference between Returns and Corrections ................................................................................................9-84

Guided Demonstration - Inspect and Deliver a Receipt (Required) ..........................................................9-85 Guided Demonstration - Process a Return to Supplier (Optional).............................................................9-87 Guided Demonstration - Correct a Receiving Error (Optional).................................................................9-89 Practice - Inspect and Deliver a Receipt ....................................................................................................9-91 Solution - Inspect and Deliver a Receipt ...................................................................................................9-93 Practice - Process a Return to Supplier......................................................................................................9-96 Solution - Process a Return to Supplier .....................................................................................................9-98 Practice - Correct a Receiving Error..........................................................................................................9-100 Solution - Correct a Receiving Error .........................................................................................................9-102

Overview of Pay on Receipt ..........................................................................................................................9-105 Agenda...........................................................................................................................................................9-107 Reports...........................................................................................................................................................9-108 Summary........................................................................................................................................................9-111



11i Purchasing for End Users Table of Contents ix

Preface

Profile

Prerequisites

• 11i Navigating Oracle Applications

• 11i Essentials for Implementers.

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.

Related Publications

Oracle Publications

Title Part Number

Oracle Payables User’s Guide A81180-03

Oracle Purchasing User’s Guide A82913-01

Oracle iProcurement Installation Guide A85343-02

Oracle Inventory User’s Guide A83507-03

Implementing Oracle HRMS (US) A75314-02

Additional Publications

• System release bulletins

• Installation and user’s guides

• read.me files

• Oracle Magazine



11i Purchasing for End Users Table of Contents x

Typographic Conventions

Typographic Conventions in Text Convention Element Example Bold italic Glossary term (if

there is a glossary)

The algorithm inserts the new key.

Caps and lowercase

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 is lowercase)

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 words and phrases, titles of books and courses, 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 the name of the user.

Quotation marks

Interface elements with long names that have only initial caps; lesson and chapter titles in cross-references

Select “Include a reusable module component” and click Finish. This subject is covered in Unit II, Lesson 3, “Working with Objects.”

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

Use the SELECT command to view information stored in the LAST_NAME column 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]



11i Purchasing for End Users Table of Contents xi

Typographic Conventions in Code Convention Element Example Caps and lowercase

Oracle Forms triggers

When-Validate-Item

Lowercase Column names, table names

SELECT last_name FROM s_emp;

Passwords DROP USER scott IDENTIFIED BY tiger;

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

Lowercase italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and functions

SELECT userid FROM emp;

Typographic Conventions in Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you through 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 Batches Summary.

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



11i Purchasing for End Users Table of Contents xii

Typographical Conventions in 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.



Procure to Pay Purchasing Overview Chapter 1 - Page 1

Procure to Pay Purchasing Overview Chapter 1




Procure to Pay Purchasing Overview

Procure to Pay Purchasing Overview




Procure to Pay Lifecycle

Procure to Pay LifecycleRequisitions

Purchase Orders

Receiving

Reporting

Invoice/ Payment

Supplier Performance

Supplier management

RFQs/ Quotations

Catalog Content

Management

Sourcing

Ordering

Analysis




Objectives

Objectives

After completing this module you should be able to do the following:• Describe how the Purchasing process fits into the

Procure to Pay lifecycle• Describe the Purchasing process flow• Describe the key areas in the Purchasing process• Identify Purchasing integration points• Identify Purchasing open interfaces




Agenda

Agenda

• Understand the Purchasing process• Understand Purchasing integration points• Understand Purchasing open interfaces




Overview of Purchasing Process


CreateRequisition

AutoCreate

Purchasing Document

Send to Supplier

Receive Goods

ApproveRequisition

ApprovePO Document


The purchasing process flow within the Procure to Pay business flow focuses on procurement activities from the request of goods and services to their eventual receipt. Throughout the purchasing process you are able to:

• Route transactions according to your approval structure. Approval authorization limits are defined by amount, charge account, item category, and location. For documents that require your approval, you can review and approve transactions on-line. Also, you can see the full transaction detail and review the action history before you approve a transaction.

• View Approval Status. Purchasing automatically displays the approval status of your transaction and informs you whether it is Approved, Cancelled, In Process, Incomplete, Pre-Approved, Rejected, or Returned. You know where your transaction is within this flow at all times.

• Automatically generate distribution accounts. Purchasing uses Account Generator to enter the distribution automatically whenever possible.

• Provide attachments as notes on transaction headers and lines.




Overview of Requisitions

Overview of Requisitions

Material Requirements

Planning

OtherSystems

WIP

Inventory

Order Management

DemandImport/Reschedule

Manually Create

iProcurement

Requisition

ApproveRequisition

Requisitions

A requisition is an optional starting point in the procurement process. Requisitions allow employees to enter requests for products and services which are then transmitted to the procurement staff. Requisitions within Oracle contain information regarding the accounts that should be charged for the purchase along with details such as delivery location and approvals based upon company policies. In addition to the manual creation of on-line requisitions, you can use Master Scheduling/MRP to generate requisitions based upon the planning requirements of your organization. Inventory can generate requisitions based upon replenishment requirements. Outside processing requirements can be generated into requisitions by Work In Process. Order Management generates requisitions based upon the need to drop ship goods to customers directly from our suppliers. Internal processes, such as internal sales orders are initiated from the requisition process as well. The internal requisition document passes information to Order Management to allow for the shipment of goods and services within our own company.




With Purchasing/iProcurement you can:

• Create, edit, and review requisition information on-line. You are also able to enter suggested supplier information, delivery instructions, multiple accounting distributions, and notes to buyers, approvers, and receivers. You always know who approves requisitions and whether they are in the approval, purchasing, receiving, or delivery stage.

• Route requisitions according to your approval structure. You are also able to set authorization limits by amount, charge account, item category, and location. You can review and approve requisitions that need your approval, and see the full requisition detail and review the action history before you approve a requisition. If your business process requires off-line review and approve, you can print requisitions (with status Approved, Cancelled, Rejected, In Process, Pre-Approved, and Returned).

• Import requisitions from other systems such as material or distributions requirement planning applications

• Transfer requisition information to the purchase order document via AutoCreate process




Overview of Requisition to Order Document

Overview of Requisition to Order Document

Approved Requisition

Source?

External

Internal

Create InternalSales Order

AutoCreate

Purchasing Document

RequisitionPool

Requisition to Order Document

If your purchasing process begins with a requisition, that document must be transformed within Oracle into either a Purchasing Document that is sourced externally or an Internal Sales Order that is sourced internally. AutoCreate The AutoCreate process allows you to transfer information contained on a requisition document to a purchasing document, so it may be sent to a supplier. AutoCreate allows a buyer to add requisition lines to an existing purchasing document or create a new document. Internal Sales Orders If the goods and services requested are to be sourced from within your own company, the internal requisition will be passed to the Order Management application for fulfilment via the Create Internal Sales Orders process. For more information on Internal Requisitions and Internal Sales Orders please see the Advanced Topic: Internal Requisitions and Sales Orders.




Overview of Purchase Order Process

Overview of Purchase Order Process

Receiveagainst PO

Match invoices against PO

Maintain documentsAccept Revise Control

Approve PO

AutoCreate ManuallyCreate

RequisitionPool

Purchase Order Process

The creation of the purchasing document marks the beginning of the required steps within the Purchasing Process. Purchasing allows you to create several different types of purchasing documents: Standard and Planned Purchase Orders, Blanket and Contract Purchase Agreements, along with Blanket and Scheduled Releases. These six documents allow maximum flexibility to meet procurement team needs, while maintaining corporate policies and standards. With Purchasing/iProcurement you can:

• 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 paper

requisitions. • Create accurate and detailed accounting information so that you charge purchases to the

appropriate departments. • Check your funds availability while creating purchase orders.




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

• Print purchase orders flexibly by using a number of print options . • Inform your suppliers of your shipment schedule requirements. • Record supplier acceptances of your purchase orders. You always know whether your

suppliers have received and accepted your purchase order terms and conditions. • Create your purchase orders by providing a quantity and price for each item you are

ordering. Alternatively, you should also be able to create your purchase order simply by providing an amount if you are ordering a service that you cannot break down by price and quantity.

• Copy purchase orders.




Overview of Receiving Process

Overview of Receiving Process

Shipment ofGoods

Inspection

Deliver

Inventory

Shop Floor

Expense

Receipt

Receiving Process

Purchasing lets you control the items you order through receiving, inspection, transfer and internal delivery. These features allow you to control the quantity, quality and internal delivery of the items you receive. With Purchasing/iProcurement you can:

• 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 and dock-to-stock receipt for others.

• Define receiving tolerances at the organization, supplier, item, and order level, with the lowest level overriding previous levels. You can define tolerances for receipt quantity, on-time delivery, and receiving location. You can assign looser tolerances to low-value items that you consume at high volumes. You can set enforcement options to ignore, warn the user, or reject transactions that violate the tolerances.

• Specify match approval levels. You can specify two-, three-, and four-way match approval levels on a purchase order line.Purchasing uses your receiving and inspection information to ensure that you only accept and pay for the items you order, receive, or




inspect. Choose the three-way match approval level if you want to receive items before you allow payment. Choose the four-way match approval level if you require inspection and acceptance of receipts before authorizing payment.

• Use Advance Shipment Notices (ASNs) to enter receipts in the Enter Receipts window, reducing data entry time.

• Print the receiving and inspection documentation you need. For example, you can prepare for incoming receipts by printing the Expected Receipts Report to help you identify items and quantities you expect to receive. You can use this report to plan your work, identify receipts satisfying an urgent demand, and control unexpected receipts. Finally, you can produce summary and detail receiving transaction reports by item, supplier, purchase order number, and/or receiving date range.

• Track, update, and record the receipt of intransit and inter-organization shipments. • 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 is matched to an order shipment.

• Automatically update related supply information, inventory balances, WIP operations, requisition details, and purchase order details while entering a single receiving transaction.

• Receive services, inventory, expense, and outside processing items using one screen. You acknowledge receipt of services by receiving amounts of the service, generally related to receipt of an invoice. You receive inventory items to expense or asset subinventories, you receive expense items to the requestor, and you receive outside processing to the shop floor (designated operations in your manufacturing process).

• Distinguish closed for invoicing from closed for receiving. Purchasing automatically closes your purchase order for receipt when it is fully received. You can manually close partially received purchase orders if you no longer expect any more receipts against them. Close for invoicing and close for receiving are managed using tolerances. You can specify that when you have received a certain percentage of a shipment, Purchasing will close the receipt. This is a soft close, and you can reopen the receipt. Purchasing rolls up closing to the line and header level, and ”Closed” information does not show in the Open Purchase Orders Report. Also, if there is a remaining balance, closed quantities are no longer visible as supply scheduled receipts to MRP/ATP.

• Decide how you accrue un-invoiced receipts. For instance, you can accrue receipts perpetually or at period-end for expense items. Purchasing uses perpetual accrual for your inventory and shop floor item receipts. Purchasing and Inventory together provide you with perpetual visibility and control on your accrued liabilities for inventory items. Inventory lets you maintain the value of your inventories on a perpetual basis. And Purchasing automatically records your accrued liability in your general ledger as you enter receiving transactions. Purchasing also provides you with complete visibility and control of your inventories values, accrued liabilities for inventory and non-inventory items, purchase price variances, and invoice price variances. And Purchasing provides you with the information you need to facilitate your period close and your inventory, purchasing, and payables reconciliation process.

• Track the quantity and destination of internally delivered items You know exactly what items you receive and where to deliver them within your organization.




• Define which of your items require inspection. Purchasing lets you inspect received items before you move the items into stock or deliver them to the requestor. You can accept or reject items and provide detailed information about your inspection results. Purchasing lets you review your inspection results on-line. You can review your inspection results by receipt number, purchase order number, supplier, item, and/or transaction date range. Purchasing also provides summary and detail reports to help you analyze your suppliers’ performance. You can produce supplier quality reports by buyer, supplier, and item. You can use the receiving inspection register to review your inspections by receipt.

• Correct receiving transaction errors. Purchasing automatically updates the inventory balances if you correct the quantities of items that have already been moved into inventory.




Agenda

Agenda

• Understand the Purchasing process• Understand Purchasing integration points• Understand Purchasing open interfaces




Overview of Purchasing Integration


CashManagement

Purchasing/ iProcurement

Projects

Payables

General Ledger

e-Commerce Gateway

ASCP/MRP


Payables • Accounting for matched purchase orders • Suppliers • Procurement cards • Purchase orders

Projects • Project, task, expenditure type, expenditure organization

General Ledger • Sets of books • Exchange rates • Accounting flexfield • Currency • Charge Account Combinations

Cash Management




• Cash forecasting e-Commerce Gateway

• Inbound 856, 857 (Advance Shipping Notice, Advance Shipping and Billing Notice) • Inbound 843 (Response to request for quotation) • Inbound 832 (Quotation) • Outbound 850, 860 (Purchase order, change order)

Advanced Supply Chain Planning (ASCP)/Material Requirements Planning (MRP) • Requisitions created based on actual and forecast demand






Workflow Inventory

QualityHumanResources

Alert

A+


iSupplier Portal

Overview of Purchasing Integration (continued)

Human Resources • Employees (Requestors and Buyers) • Organizations (Receiving) • Locations • Hierarchies (Approval)

Workflow • Approval Process • Account Generator • Notifications

Alert • Expiration and Release Alerts

Quality • Inspection plans • Inventory




• Units of measure • Item information

Inventory • Items • Demand • Receipts

iSupplier Portal (iSP) • Record purchase order acknowledgments • Reschedule Promised-By dates • View agreed amounts and released amounts for blanket purchase agreements • View purchase order and revision history • View RFQs • View expected deliveries • Create and view ASNs and ASBNs • View receipts, returns and overdue receipts • View quality results and inspection details • View and maintain order modifiers • Set processing lead time, minimum order quantities and fixed lot multiples • Forecast shipment schedules • View invoice and payment information • Search and view supplier items






Assets Order Management


WIP

Overview of Purchasing Integration (continued)

Assets • Suppliers

WIP • Receipts • Requisitions generated from outside processing

Order Management • Internal requisitions • Demand • Drop shipments




Purchasing Integration with General Ledger


Receipt Accruals

Journal Import1 2

GeneralLedger

GL InterfacePurchasing/ iProcurement

RatesSet of Books


Payables Transfer (1) Use the Receipt Accruals - Period-End process to transfer periodic accruals to the GL_Interface table. Perpetual accruals are sent to General Ledger when the receipt is processed. Journal Import (2) Use the Journal Import process, with a source of Purchasing, to transfer accrual accounting from the GL_Interface table to General Ledger. The Journal Import process creates unposted journals. The Post process in General Ledger updates account balances. Once journals are posted, you can perform account analysis, subledger drill down and run financial statements.




Purchasing Integration with Payables

Purchasing Integration with Payables

Payables

1

2

Match and Update Qty

Billed

Copy Accounting

POs PCardsSuppliers


Payables Integration with Purchasing

Match and Update Qty Billed (1) Enter an invoice and match it to a purchase order to update the quantity billed against the purchase order. Copy Accounting (2) During the match process, accounting stored with the purchase order distribution is copied to the invoice.




Purchasing Integration with Cash Management


CashManagement



As requisitions are entered into the system, approved and used to create purchase documents, the likelihood that goods or services will be received, an invoice entered into Payables and payment made increase. Organizations can use Cash Management to create and use cash forecasts to better assess the timing and amount of their cash needs.




Purchasing Integration with Projects


ProjectsPurchasing/ iProcurement

CommitmentsTasksProjects


Projects uses purchase order information in Purchasing to determine committed costs. All projects start with a cost budget. As materials are purchased and invoices received, the actual costs are accumulated for the project. Those project costs are interfaced to Projects from Payables. Project managers then use Project Status Inquiry to view cost information for their projects. However, if project managers were to wait until invoices were received to determine the total cost of their project and and are asked to forecast if they will achieve their targeted cost budget, they may not be able to act quickly enough if their project begins to have cost overruns. Projects can use committed costs like purchase orders to help better assess project status. Purchase orders are essentially orders for goods and services that will eventually lead to an invoice and a project cost.




Purchasing Integration with ASCP/MRP


Run Requisition

Import

Release Planned Orders

3 2


Requisition Interface

ASCP/MRP

Launch Planning

Processes1


ASCP/MRP gives the ability to either manually or automatically load requisitions into the Requisitions Interface based on planned demand. Launch Planning (1) You can launch the planning process for a material requirements plan (MRP) or a master production schedule (MPS). Release Planned Orders (2) Release planned orders to generate requisitions for Buy items. Requisitions are interfaced to the Requisitions open interface. Run Requisition Import (3) Requisition Import creates a requisition line and one or more requisition distributions for each row it finds in the interface table. It then groups these lines on requisitions according to parameters you define. You can create releases each time you run the Requisition Import process.




Purchasing Integration with e-Commerce Gateway


• 856 - Shipping Notice (ASN)• 857 - Billing Notice (ASBN)• 843 - Response to RFQ• 832 - Quotation• 850 - Purchase Order• 860 - Purchase Order Change Order

e-Commerce Gateway

Purchasing/ iProcurement Suppliers


Purchasing integrates with e-Commerce Gateway for exchanges of several EDI transactions. The e-Commerce Gateway can extract purchase orders and change orders, load catalogs, ASNs (Advance Shipping Notices) and ASBNs (Advance Shipping and billing Notices).




Purchasing Integration with Human Resources


HumanResources


HierarchiesOrganizationsLocationsEmployees


Employees defined using Human Resources are buyers and requesters in Purchasing. Locations that are defined become Bill-To and Ship-To and Receiving locations. Organizations defined in Human Resources become the operating units and inventory organizations. Hierarchies like the position hierarchy or the employee/supervisor hierarchy can be defined in Human Resources. Purchasing uses hierarchies for requisition and purchase order approvals.




Purchasing Integration with Quality


Quality

A+


ReceivingPlans


Quality is an integrated quality management application designed to support manufacturers in the pursuit of total quality management (TQM), zero defects, continuous process improvement (CPI), and ISO 9000 certification. It is designed to support the diverse data collection needs of discrete, repetitive, assemble-to-order, and batch process manufacturers. Quality helps you manage and distribute critical quality information throughout your organization. Purchasing shares collection plans with Quality. Collection plans are similar to test or inspection plans. They contain the collection elements that represent the specific data that you want to collect and report on. Collection plans can include collection elements that collect data on defect types, symptoms, causes, actions, critical measurements, or environmental characteristics, as well as reference information such as item, lot number, serial number, operation, department, subinventory, supplier and customer. You also can specify target values and limits for collection plan elements, and mandate that certain actions be taken, based on the quality results entered. For example, you can specify that an electronic mail notification be sent when a temperature reaches a certain level.




Purchasing Integration with Inventory


Requisition Import

Min/Max Planning2 1

InventoryPurchasing/ iProcurement


ReceiptsItemsUOMsCategories


Min/Max Planning (1) Use the Min-Max Planning Report to show planning information for all items, or items with on-hand balances either below or above their assigned minimum or maximum on-hand quantities. You have the option to generate internal or purchase requisitions for Buy items that are sent to the Requisitions Open Interface. Requisition Import (2) Use the Requisition Import process to import requisitions Inventory. Requisition Import creates a requisition line and one or more requisition distributions for each row it finds in the interface table. It then groups these lines on requisitions according to parameters you define. You can create releases each time you run the Requisition Import process.




Purchasing Integration with Alert


• Approved Standard Purchase Orders

• Notification Expiration• Notification Not

Released

• Notification Released• Purchase Releases

over Threshold• No Receipt Required

on Purchase Order Shipment

AlertPurchasing/ iProcurement


Alert offers predefined periodic Alerts to identify the following database exceptions: • Approved Standard Purchase Orders • Blanket Purchase Releases over Threshold • No Receipt Required on Purchase Order Shipment • Small Business Suppliers • Standard Purchase Order over Threshold • Blanket Purchase Releases over Threshold • Suppliers on Hold

The following are available for Blanket Agreements, Contract Agreements and Planned Purchase Orders:

• Notification Expiration • Notification Not Released • Notification Released




Purchasing Integration with Workflow


• Requisition Approval• Purchase Order

Approval• Approve Change

Orders• Create Purchase

Orders and Releases

• Confirm Receipts• Send Notifications• Price/Sales Catalog

Notification• Generate Accounting

WorkflowPurchasing/ iProcurement


Requisition Approval The PO Requisition Approval workflow is used for approving requisitions. Purchase Order Approval The PO Approval workflow is used for approving purchase orders. Approve Change Orders The Change Order workflow is used for controlling which changes to purchase orders require a manual reapproval and which are automatically reapproved. Create Purchase Orders and Releases The PO Create Documents workflow for automatically creating purchase orders and releases. Confirm Receipts PO Confirm Receipts workflow for sending receipt notifications to requesters or buyers notifying them that they should have received their order. Send Notifications




PO Send Notifications for Purchasing Documents workflow for looking for documents that are incomplete, rejected, in need of reapproval, or approaching expiration and sending notifications to the appropriate people. Price/Sales Catalog PO Catalog Price Tolerance Exceeded Notifications workflow for sending a notification to the buyer when the price/sales catalog information sent through the Purchasing Documents Open Interface includes price increases that exceed a price tolerance that you set. Generate Accounting The PO Account Generator workflow and the PO Requisition Account Generator workflow are used for generating Budget, Accrual, Charge, and Variance account combinations.




Purchasing Integration with iSupplier Portal


• View document information• Update system information• View receiving information• View and update planning information


iSP


View document Information • View agreed amounts and released amounts for blanket purchase agreements • View purchase order and revision history • View RFQs

Update system information • Record purchase order acknowledgments • Reschedule Promised-By dates • Create and view ASNs and ASBNs • Set processing lead time, minimum order quantities and fixed lot multiples

View receiving information • View expected deliveries • View receipts, returns and overdue receipts • View quality results and inspection details

View and update planning information




• View and maintain order modifiers • Forecast shipment schedules • Search and view supplier items




Purchasing Integration with Assets


AssetsPurchasing/ iProcurement

SuppliersCategories


Items for frequently purchased assets may be set up in the Master and Organization items forms and associated with an asset clearing account and asset category. When these items are purchased with a purchase order and the invoice and receipt are processed, payables has enough information to interface the asset to Assets with description, quantity and asset category information.




Purchasing Integration with WIP


Requisition Import

WIPPurchasing/ iProcurement


Interface Requisitions12


You can either manually enter requisitions for outside processing directly into Purchasing Items or generate them in Work in Process (WIP) and interface them to Purchasing through the Requisitions Open Interface.




Purchasing Integration with Order Management


Create Internal Sales

Orders1 2 Order Import

Order Management

Sales Orders Interface


Receive

3


You can use internal requisitions to requisition goods from one inventory organization and to move to different inventory organization. After internal requisitions are approved, they are interfaced to the Sales Order interface and eventually are used to create an Internal sales order. Goods are shipped from one inventory organization to another. You can find expected receipts in the destination inventory organization process the receipt. Create Internal Sales Orders (1) Use the Create Internal Sales Orders process to send requisition information from approved, inventory-sourced requisition lines to the Order Management interface tables. Order Import (2) Then the Order Import process is run from within Order Management to generate the internal sales orders. Receive (3) Find expected receipts and process receiving transactions when the goods are shipped.




Summary

Summary

You should now be able to do the following:• Describe the Purchasing process flow• Describe the key areas in the Purchasing process• Describe how the Purchasing process fits into the

Procure to Pay lifecycle• Identify Purchasing integration points• Identify Purchasing open interfaces



Suppliers Chapter 2 - Page 1

Suppliers Chapter 2




Suppliers

Suppliers






Purchase Orders

Receiving

Reporting

Invoice/ Payment


Supplier management

RFQs/ Quotations

Catalog Content

Management

Sourcing

Ordering

Analysis




Objectives

Objectives

After completing this module, you should now be able to do the following:• Define suppliers• Define supplier sites• Identify key reports• Understand setup options• Understand additional implementation

considerations




Agenda

Agenda

• Describe overview of suppliers• Define supplier records• Identify key standard reports• Understand setup options• Understand additional implementation

considerations




How Oracle Products Use Supplier Information

How Oracle Products UseSupplier Information

Payables

Purchasing

Assets

Property Manager

How Oracle Products Use Supplier Information

Suppliers can be set up from many different applications, but the data is stored in only one place. Applications sharing supplier information include Purchasing, Payables, Assets, and Property Manager. Purchasing Purchasing uses supplier defaults, such as freight terms and shipping details, on requisitions, purchase orders, requests for quotations, etc. Payables Payables uses supplier defaults, such as method of payment and bank account information, during invoice entry and payment processing. Assets Assets maintains the supplier name and number for each asset record. Property Manager Property Manager exports lease invoices for suppliers to Payables so they may be paid.




Overview of Suppliers


Enter supplier Enter invoice Approve invoice

Create accountingentries

Pay invoice

Create PO

Enter requisition

Match to PO


Set up suppliers in the Suppliers window to record information about companies and individuals from whom you purchase goods and services. When you enter a supplier that does business from multiple locations, you store supplier header information only once, and you enter supplier sites for each location. Most supplier information defaults to supplier sites. However, you can override the values that default if necessary. After you define suppliers, you can use them when you enter invoices and create purchasing documents.




Flow of Default Values

Flow of Default ValuesProcurement Flow Payables Flow

Financials options

Purchasing options/Receiving options/Payables options

Supplier

Supplier site

Invoice

Scheduled payment line

Item

PO Documents Distribution line

12

1 Takes precedence over 2

Flow of Default Values

• Defaults set at higher levels flow down to lower levels where you can override them. • Defaults reduce data entry by providing default values based on corporate policy.

Optional defaults (especially the higher level ones) should be left blank if you frequently override them.

• Purchase order matched invoices will receive defaults from the purchase order you specify when you match.

Note: Changes to default values affect only new records, not existing records. For example, if payment terms are reset to Net 30 from Net 45, new suppliers will have a default of Net 30. Existing suppliers will have terms of Net 45.




Agenda

Agenda

• Describe overview of suppliers• Define suppliers• Identify key standard reports• Understand setup options• Understand additional implementation

considerations




Supplier Record Structure


Supplier

Pay sitePurchasing site RFQ Only site

Tokyo New York

Purchasing site

Paris

Sue Taylor, Sales Mgr

Bill Wilson, Sales Quotes

Liz Miller, Sales Rep

Aaron Carr, AR Mgr


For every supplier, you can create an unlimited number of supplier sites with different addresses and contacts. You can buy from several different sites while sending the payments to only one site. Define how supplier sites may be used with the following options:

• Pay - You can enter invoices for and make payments to the site. • Purchasing - You can create purchase orders for the site. • RFQ Only - You can create request for quotations in Purchasing for the site. You cannot

create purchase orders for an RFQ Only site. • Procurement Card - You can purchase goods or services using a procurement card.

Designate a site as an RFQ Only site during the beginning of negotiations with a supplier. If you decide to use the supplier, designate the supplier site as a Purchasing site by deselecting the RFQ Only option and selecting the Purchasing Site option. For each supplier site, you can enter contact information (name, address, telephone) specific to that site. Contact information is for your reference only.




Entering Basic Supplier Header Information

Entering Basic SupplierHeader Information

• Name• Number

Stevens and Co46018

• Inactive On 01-AUG-2002

• Taxpayer ID or• Tax Registration NumberFEIN 52-12345678

Entering Basic Supplier Header Information

Purchasing Responsibility (N) Supply Base > Suppliers Name Suppliers should provide their official business name for entry in the Supplier Name field. Names must be unique and can be updated if necessary. Number You can manually enter supplier numbers or they can be automatically generated by the system when you save the record. Taxpayer ID If the supplier is a corporation or partnership, use the federal identification number. If the supplier is an individual, use a social security number. Optionally enter the value-added tax (VAT) registration number in the Tax Registration Number field if you are entering a VAT supplier.




Inactive On Prevent entry of invoices and purchase orders for specific suppliers after a certain date by entering a date in the Inactive On field.




Supplier Information - General Region


• Parent Supplier Name– Must already be defined to select

• Number– Parent supplier number

• Customer Number

Your SupplierCust.

#9924

Your Company

Parent

ChildChild


Parent Supplier Name and Number You can record the relationship between a franchise or subsidiary and its parent company by recording a value for the Parent Supplier Name field. Use the Vendor Affiliated Structure Listing to report relationships you’ve defined. Customer Number The number your supplier uses to identify your company or organization. This number appears on purchase documents.




Supplier Information - Classification Region


YesDonationsAdams for Board

NoOffice SuppliesHal’s Supplies

One-Time?TypeName

Woman Owned Small Business

Minority-Owned


You assign types to each supplier to categorize and report on subsets of suppliers. You define the list of values available through the Purchasing Lookups window. Tax Authority and Employee type suppliers have additional functionality:

• Tax Authority type suppliers are suppliers that you remit withholding taxes to. • Employee type suppliers can be associated with an employee name and number. They

may be a supplier for purposes of travel and expense reimbursement or because they own a business from which you purchase goods and services.

The One-Time check box should be selected when a supplier is established with whom you don’t expect to do repeat business. Run standard reports to identify active suppliers with this box selected. In the United States, suppliers may need to be classified for specific government reporting purposes. For example, some companies receive certain government contracts only if a percentage of their suppliers fall into certain categories. The Minority-Owned, Small Business and Woman Owned fields allow you to track your suppliers by these categories. You define the list of values available for Minority-Owned suppliers through the Purchasing Lookups window.




Supplier Information - Accounting Region

Supplier Information - Accounting Region

• Entered at Supplier level only if you are not using Multi-Org

• See Supplier Site Information/Accounting Region discussed later




Supplier Information - Control Region


• Invoice Amount Limit• Invoice Match Option• Hold All Payments• Hold Unapproved Invoices• Hold Unmatched Invoices

Supplier

Sets defaults for new sites

Sites

Sets control

Contacts – N/A


Entry of defaults on this tabbed region at the supplier level will not prevent payment processing, but will simply provide defaults to new supplier sites. Control is affected only through values established at the site level. Invoice Amount Limit If you enter an invoice for a supplier site that exceeds a pre-specified invoice amount limit, Payables will automatically place the invoice on an Amount Hold during the invoice approval process. Invoice Match Option The Invoice Match Option determines whether or not you intend to match invoices for this supplier against purchase orders or receipts. Hold All Payments Select the Hold All Payments option to prevent any invoices entered for the supplier site from being selected for payment processing. Hold Unapproved Invoices




If the Hold Unapproved Invoices option is selected, Payables will automatically apply a Supplier hold to all invoices as they are entered. Hold Unmatched Invoices If the Hold Unmatched Invoices option is selected, Payables will automatically apply a Matching Required hold to all unmatched invoices.




Supplier Information - Payment Region

Supplier Information - Payment Region

• Pay Group• Payment Priority• Payment Method

• Pay Alone

• Always Take Discount• Exclude Freight from Discount

• Terms Date Basis• Pay Date Basis

Payment Batch #02-JanEmployees Priority 1 Electronic Payment

Invoice Check1 to 1

• Terms - 2/10, Net 30

Supplier Information- Payment Region

Pay Group Assign a Pay Group and assign it to a supplier to pay a category of suppliers in the same payment batch. Payment Priority The Payment Priority is a number, between 1 (high) and 99 (low), which represents the priority of payment. The system uses the Supplier Site value to automatically assign a Payment Priority to an invoice’s scheduled payment(s) during invoice entry. Payment Method The Payment Method is the form of payment used for each supplier invoice. Options include check, electronic, wire or clearing. Wire payments are done manually to reflect external wire transfers made between your bank and your supplier’s bank. Clearing payments are recorded for payments made within the company. Clearing transactions are necessary to effect proper accounting of this activity. Pay Alone




If the Pay Alone option is enabled, Payables creates a separate payment for each invoice. If it is not enabled, Payables will combine multiple invoices on a single payment. Terms The system uses payment terms to automatically calculate due dates, discount dates, and discount amounts for each invoice in order to schedule payments. Additional terms can be added to the list of values through the Payment Terms window. Terms Date Basis The Terms Date Basis is the date you select for Payables to use as the basis for calculating the scheduled payment. Below are the options available listed in order from the earliest date selection to the most recent date selection.

• Goods Received • Invoice (Date) • Invoice Received • System (Date)

Pay Date Basis The Pay Date Basis determines if the system will create a payment at the end of the discount period or by the due date. Always Take Discount Enable the Always Take Discount check box to have Payables always pay the discounted amount regardless of whether payment is made within the discount period or not. Exclude Freight from Discount If you select the Exclude Freight from Discount check box, the system will exclude freight prior to calculating discounts.




Supplier Information - Bank Accounts Region


• Name• Number• Primary

Operating Account #432198-77


The Bank Accounts Region is used to record supplier bank account information that you use for making electronic payments. You can select the name and number of the bank account from the list of values that includes all active supplier type bank accounts. Bank accounts must be predefined in the Bank Accounts window. If you need to set up the bank account, you can click on the current record indicator (solid blue rectangle) to directly access the bank account setup window. For each supplier and supplier site that has bank account assignments, you must designate one bank account as the primary bank account. The primary bank account is used by Payables as a default when you pay this supplier electronically. You may override the default if necessary.




Supplier Information - EDI Region


If you pay your supplier with electronic payments, enter Electronic Data Interchange (EDI) information such as:• EDI Payment Method• EDI Payment Format• EDI Remittance Method


EDI Payment Method The EDI Payment Method indicates how this electronic payment will be made. EDI Payment Format If you selected Automated Clearing House (ACH) as the EDI Payment Method, you must also specify an EDI Payment Format. This format indicates the type of information to be transmitted with the funds. EDI Remittance Method The EDI Remittance Method indicates which party is responsible for sending the remittance advice to the payee.




Supplier Information - Invoice Tax Region


• Invoice Tax Code• Use Offset Tax• Calculation Level• Allow Calculation Level Override• Rounding Rule• Distribution Amounts Include Tax


For more information, refer to the Payables User Guide or to the 11i Procure to Pay Advanced Topic Global Taxes.




Supplier Information - Withholding Tax Region


• Allow Withholding Tax• Withholding Tax Group






Supplier Information - Tax Reporting Region


• Federal (1099 eligible)• Income Tax Type (1099 tax types)• State • Reporting Site• Reporting Name• Verification Date• Name Control • Organization Type






Supplier Information - Purchasing Region


• Ship-To Location• Bill-To Location• Ship Via• Free-on-Board (FOB)• Freight Terms

• Create Debit Memo fromRTS Transaction

• Purchase Order Hold/ReasonPoor Quality


Ship-To Location/Bill-To Location Suppliers generally send invoices and shipments for goods and services to Ship-To and Bill-To Locations. These locations are often not the same. Ship Via Ship Via allows you to indicate a preferred carrier that you’d like the supplier to use when shipping to you. FOB Free on Board (FOB) indicates the point at which ownership of the goods and services, as well as the cost of any damage or loss, transfers from the supplier to you. Freight Terms Freight Terms indicate whether you or your supplier pay the freight charges for the goods you ordered. Create Debit Memo from RTS Transaction




If you enable the Create Debit Memo from RTS (Return to Supplier) Transaction option, you will have the option of allowing Workflow to automatically create a debit memo when processing a return to supplier. Purchase Order Hold/Reason If a supplier is placed on Purchase Order Hold and if the Enforce Vendor Hold box is checked in the Purchasing Options window, the system will allow you to create a purchase order for the supplier, but you will not be able to approve it until you released the hold. If you use this option, use a descriptive explanation in the Reason field to explain the reason for the hold.




Supplier Information - Receiving Region


• Enforce Ship-To Location• Receipt Routing• Match Approval Level• Quantity Received Tolerance• Quantity Received Exception• Days Early/Late Receipt Allowed• Receipt Date Exception• Allow Substitute Receipts• Allow Unordered Receipts


Enforce Ship-To Location Values for the Enforce Ship-To Location include none, warning and reject.

• A value of reject will prevent entry of the receipt in the system. • A value of warning will provide a message of the discrepancy, but will allow the receipt

entry to continue. • A value of none will simply allow the receipt to be entered and will not provide a

warning message of the discrepancy. Receipt Routing Receipt routing indicates which default location will be used at the point of initial receipt and generally the number of steps it takes for the item to reach its final destination. Below are the options available.

• Direct Delivery - 1 step to the final destination • Standard Receipt - 2 steps: 1st to receiving, then to the final destination • Inspection Required - 3 steps: 1st to receiving, next to inspection, then to the final

destination




Match Approval Level The Match Approval Level indicates what information will be compared to determine whether an invoice can be approved or not. Options are:

• 2-Way - Purchase order and invoice quantities must match within tolerance before the corresponding invoice can be paid. The receipt close tolerance should be set to 0% to allow the system to automatically close fully received lines.

• 3-Way - Purchase order, receipt, and invoice quantities must match within tolerance before the corresponding invoice can be paid.

• 4-Way - Purchase order, receipt, accepted, and invoice quantities must match within tolerance before the corresponding invoice can be paid.

Quantity Received Tolerance The maximum acceptable over-receipt tolerance percentage Quantity Received Exception The action to be taken when the quantity received tolerance is exceeded. Days Early/Late Receipt Allowed The window within which delivery will be allowed. Receipt Date Exception The action to be taken when delivery occurs outside of this window. Allow Substitute Receipts If Allow Substitute Receipts is enabled, receivers can receive previously defined substitute items in place of ordered items. Allow Unordered Receipts Allow Unordered Receipts permits receivers to acknowledge receipt of unordered items. If enabled, you will need to later research and match the unordered receipts to the appropriate purchase order. If you allow Unordered receipts, you will always be able to record the fact that a physical receipt was processed giving full visibility to the transaction.




Supplier Site Settings


Tokyo

New York

Paris

Net 30

2/10, Net 30

Net 30

Due

Discount

Due

Tokyo Office

Headquarters

Headquarters

Payment Terms Pay Date Basis Ship-To Location

ABC Corp. Sites


Recall the default value hierarchy flow. Entries made at the supplier level will default to the supplier site level. Defaulted information can be either accepted or overwritten with site-specific values. In the example above, notice that Tokyo and New York have payment terms of Net 30 and a Pay Date Basis of Due. Paris, however, has payment terms of 2/10, Net 30 and a Pay Date Basis of Discount.




Supplier Level Versus Site Level Entry


NoYesReceivingYesYesPurchasingYesYesTax ReportingYesYesWithholding TaxYesYesInvoice TaxYesYesEDIYesYesBank AccountsYesYesPaymentYesYesControlYesNoAccountingYesNoContactsNoYesClassificationYesYesGeneral

Site LevelSupplier LevelTabbed Region


Notice that information on the Classification and Receiving tabbed regions is entered only at the supplier level. Contacts, however, are entered only at the site level. Assuming the Multiple Organization Support feature has been enabled, the Accounting tabbed region is also entered only at the site level. There is additional information entered on the General, EDI, Tax Reporting and Purchasing tabbed regions available at the site level versus at the supplier level.




Entering Basic Supplier Site Information


Enter basic supplier site information such as:• Site Name• Flexible Address Format

Contacts

SupplierSites


Purchasing Responsibility (N) Supply Base > Suppliers (B) Sites You must enter a brief name for each site attached to the supplier. This is the name that will appear in the list of values for sites on either purchasing or payables documents. The associated address prints on the documents. Oracle applications allow you to enter supplier addresses in country-specific formats. If no address style is associated with the country, the standard format is used. Enable seeded address styles or set up custom address styles through the Receivables Countries and Territories window.




Supplier Site Information - General Region


• Site Uses• Supplier Notification Method• Communication• Shipping Network Location

Fax

Printed Document

Email


Site Uses Sites can be designated as one or more of the following use types: Pay, Purchasing, RFQ Only, or Procurement Card. Supplier Notification Method The Supplier Notification Method indicates how purchasing documents will be transmitted to the supplier. Options include Printed Document, Fax, or E-mail. You can specify voice, fax or email in the Communication area of this region. Refer to the additional implementation considerations discussed at the end of this module regarding communication by fax or email. You can re-route communications through an alternate method by un-checking the defaulted method, checking the alternate method desired, and providing the fax number or email address if needed. Communication Use the Communication region to enter voice, fax, telex and e-mail information. Shipping Network Location




The location that you enter in this field appears on the list of values for the Ship To Location field in the Purchase Order window. Purchasing uses this information when it receives outside processing items. In Work in Process, when you have two consecutive outside processing operations on a routing, you can use the Ship-To Location to specify that the supplier for the first outside processing operation is to ship the completed assemblies directly to the supplier for the next outside processing operation.




Supplier Site Information - Contacts Region


• Last, First• Title

Linda CarrCustomer Service Rep

• Telephone • Mailstop


Contact information is specific to a site. Contact information is for your reference only and is not used by the system. You can enter the contact’s email address for reference purposes in the Mail Stop field. This information is reference only and the field may not accommodate longer email addresses.




Supplier Site Information - Accounting Region


• GL Default Accounts– Liability– Prepayments– Future Dated Payments

22040

N/A 100

31030

21040

Acct #%

2200

N/A 0

3100

2100

Acct #%

FULL

SKELETON

• Distribution Set


Distribution Sets are used to expedite entry of distribution lines on invoices. • Full distribution sets will automatically create distribution lines with both account

numbers and dollar amounts. • Skeleton distribution sets will automatically create distribution lines with only account

numbers and you must provide the dollar amounts. GL Default Accounts provide GL account numbers that will be used when creating accounting entries for either purchasing or payables documents unless specifically overwritten when the documents are created. Note: You can only enter Accounting Region information at the site level when using the Multiple Organization Support feature.




Supplier Site Information - EDI Region


• EDI Location • EDI ID Number


EDI Location is used by e-Commerce Gateway for electronic transmission of information. After you set up your supplier sites, you link them to trading partners you define in e-Commerce Gateway. The EDI ID Number field is used only by Energy.




Supplier Site Information - Tax Reporting Region


• Tax Registration Number– Supplier’s value-added tax (VAT) number

• Income Tax Reporting Site– Can only check one site as the income tax reporting– Determines which site’s address is used

on the 1099






Supplier Site Information - Purchasing Region


• Pay On• Alternate Pay Site • Invoice Summary Level

Invoice


The Pay on Receipt functionality allows you to create invoices based on receipts and purchase order information in the system. This functionality is generally used with suppliers who send ASNs (Advance Shipment Notices) and ASBNs (Advance Shipping and Billing Notices).




Guided Demonstration - Create a New Employee (Required)

Responsibility: Human Resources, Vision Enterprises

(N) > People > Enter and Maintain

Define an Employee

1. (B) New

2. Last = Your last name

3. First = Your first name

4. Gender = Choose a gender

5. Action = Create Employment

6. Person Type = Employee

7. Social Security = Enter a 9 digit number (xxx-xx-xxxx)

8. Birthday = Enter a birthday (dd-mmm-yyyy)

9. Save

10. (B) Assignment

11. Organization = Vision Operations

12. Job = MGR500.Manager

13. (B) Correct

14. Group = Financials

15. Position = MM400.Materials Manager

16. (B) Yes to accept the default values

17. Location = M1 - Seattle

18. (T) Supervisor

19. Name = Brown, Ms. Casey

20. (T) Purchase Order Information




21. Set of Books = Vision Operations

22. Default Expense Account = 01-110-7740-0000-000

23. Save

24. Close windows until you are back at the Navigator.




Guided Demonstration - Run the Fill Employee Hierarchy Process (Required)

Responsibility: Purchasing, Vision Operations

(N) Reports > Run

Run the Fill Employee Hierarchy process to add people to the position hierarchy. This is necessary for approvals to work correctly when using a position hierarchy.

Run the Fill Employee Hierarchy process

1. (B) OK to submit a single request

2. Name = Fill Employee Hierarchy

3. (B) Submit

4. Do not submit another request

Monitor the Request Until It Completes

5. (M) View > Requests

6. (B) Find

7. (B) Refresh Data until the request completes




Guided Demonstration - Create a New Responsibility (Required)

Responsibility: System Administrator

(N) Security > Responsibility > Define

Responsibilities are key to your implementation. They determine what operating unit you belong to, what set of books you’ll post to, what forms you can use and what reports you can run.

Create a New Responsibility

1. Query the Purchasing, Vision Operations (USA) responsibility

2. (M) File > New

3. Responsibility Name = XXPurchasing, Vision Operations (USA)

4. Application = Oracle Purchasing

5. Responsibility Key = XXPURCHASING_OPERATIONS

6. Data Group Name = Standard

7. Data Group Application = Oracle Purchasing

8. Menu = Purchasing SuperUser GUI

9. Request Group Name = All Reports

10. Application = Oracle Purchasing

Verify Profile Options

11. Navigate to the System Profile Options window

12. (N) Profile > System

13. Responsibility = XXPurchasing, Vision Operations (USA)

14. Assign profile options according to the following table:

Profile Site Application Responsibility User

GL Set of Books Name

Vision Operations Vision Operations

MO: Operating Unit Vision Operations Vision Operations




HR: Security Profile Vision Corporation

HR: Business Group Vision Corporation




Guided Demonstration - Create a New User (Required)

Responsibility: System Administrator

(N) Security > User > Define

Add a New User

1. Navigate to the Define Users window

2. (N) Security > User > Define

3. User Name = XXUSER

4. Password = welcome (tab, re-enter password to verify)

5. Person = The employee you created in the first practice

6. Add the following responsibilities to your new username

Responsibility

XXPurchasing, Vision Operations

Payables, Vision Operations

System Administrator

Inventory, Vision Operation

General Ledger, Vision Operations

Assets, Vision Operations

Alert Manager, Vision Enterprises

Human Resources, Vision Enterprises

Preferences

iProcurement

Workflow

System Administration

7. Save

8. (M) File > Exit Oracle Applications

9. Make the Personal Home Page the active page




10. Log out

Login as New User

11. Login = XXuser

12. Password = welcome

13. System will prompt you to create a new Password:

14. Old Password = welcome

15. New Password = XXuser (Tab, re-enter to verify)

16. Responsibility = XXPurchasing, Vision Operations




Guided Demonstration - Add Notifications to your Personal Home Page (Required)

Responsibility: N/A

(I) Create and Modify Pages

Add a Notifications Tab to your Personal Home Page

1. (B) New

2. New Page Name = Notifications

3. (B) Apply

4. Select Notifications

5. (B) Edit

6. (I) Edit Content

7. From Available Plugs select Worklist

Note: If you do not see available plugs, make sure you have assigned the Preferences responsibility to your user!

8. (B) >

9. (B) Done

Format Notifications Tab

10. (L) Customize

11. Column 1 = Sent

12. Column 2 = Subject

13. Column 3 = Type

14. Order by Sent

15. (B) OK




Guided Demonstration - Set Yourself up as a Buyer (Required)

Responsibility: XXPurchasing, Vision Operations

(N) Setup > Personnel > Buyers

Set up a Buyer

1. (M) File > New

2. Buyer = Your employee name

3. Ship-To = M1 - Seattle

4. Save

5. Close windows until you are back at the navigator.




Guided Demonstration - Create a Supplier (Required)


(N) Setup > Purchasing > Lookup Codes

Create a Pay Group and then a supplier with two supplier sites. The first site will be a pay site and the second site will be a purchasing site.

Create a New Pay Group

The Pay Group will be assigned to each supplier that is created and will default to new supplier sites that are entered for that supplier and from your supplier sites to all invoices entered for that supplier site.

1. Query the Pay Group Lookups (Hint: [F11], Type = PAY GROUP, [Ctrl+F11])

2. Place the Cursor in any field in the lower region

3. (M) File > New

4. Code = XXPAY GROUP

5. Meaning = XXPay Group

6. Description = XXPay Group

7. Save

8. Close windows until you are back at the Navigator

Define a Supplier

Define suppliers using a naming convention like all capital letters to help reduce duplicate supplier entry.

9. (N) Supply Base > Suppliers

10. Supplier Name = XXIBM CORPORATION

11. (T) Classification

12. Type = Manufacturing

13. (T) Control

14. Invoice Match Option = Purchase Order




15. (T) Payment

16. Terms = Immediate

17. Pay Group = XXPAY GROUP

18. Select the Always Take Discount check box.

19. Save

20. (T) Receiving (if the tab is not visible, click on the double arrow to the right of the last tab to see a list of all tabs or use [F2]).

Note: Receiving options are set only at the supplier level.

21. Receipt Routing = Standard Receipt

22. Select the Allow Substitute Receipts check box

23. Match Approval Level = 3-Way

24. Save

Define a Pay Site

25. (B) Sites to open the Supplier Sites window.

26. Name = SAN FRANCISCO

27. Enter an address, a city a state and a zip code.

Note: This address should be complete. The address that will appear on any checks cut to this site!

28. (T) General

29. Pay = Checked

30. Purchasing = Unchecked

31. Supplier Notification Method = Printed Document

32. Save

Note: If you choose Fax, you will also need to have fax server software installed to use the fax functionality. For more information you can visit http://www.commercepath.com/oracle/index.html.

33. (T) Payment




34. Terms = Immediate

35. Payment Priority = XXPAY GROUP

36. Save

37. (T) Contacts

38. Enter a contact name, title, telephone, and mail-stop information.

39. Save

40. (T) Invoice Tax

41. Calculation Level = None

42. Allow Calculation Level Override = Checked

43. (T) Purchasing

44. Create Debit Memo from RTS Transaction check box = Checked

45. Save

Define a Purchasing Site

46. (M) File > New

47. Name = NEW YORK

48. Enter an address, a city, a state and a zip code

49. Save

50. (T) General

51. Pay = Unchecked

52. Purchasing = Checked

53. Supplier Notification Method = Printed Document

54. Save

55. (T) Contacts

56. Enter a contact name, title, telephone, and mail-stop information.

57. Save




58. Close the Supplier Sites and Supplier windows.




Practice - Define a Supplier

Overview

In this practice, you will do the following:

• Enter two new suppliers, each with one or more sites and with contacts for each site.

Assumptions

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

• Responsibility selected to complete this practice is Purchasing, Vision Operations (USA).

Tasks

Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations

Enter your first supplier named XX Acme Supply

Enter two sites for this supplier

Enter another new supplier; this one will be a 1099 Supplier

Enter a site for this supplier




Solution - Define a Supplier


Enter your first supplier named XX Acme Supply.

1. Navigate to the Suppliers window: N > Supply Base > Suppliers. − Enter XX Acme Supply as your supplier name, being careful to replace the “XX”

with your assigned terminal number. − Enter 52-32165478 as the taxpayer ID number.

2. (T) General, enter 77890 as your customer number.

3. (T) Classification, enter Supplier as the type.

4. (T) Control, enter Purchase Order as your invoice match option.

5. (T) Payment, enter XX as your payment priority, being careful to replace the “XX” with your assigned terminal number.




6. (T) Purchasing, enter the following: − Ship-To Location = M1-Seattle − Bill-To Location = V1-New York City − Ship Via = UPS − Create Debit Memo from RTS Transaction = check box




7. (T) Receiving, enter the following: − Enforce Ship-To Location = Warning − Receipt Routing = Standard Receipt − Invoice Matching = 3-Way − Qty Received Tolerance = 0% − Qty Received Exception = Reject − Receipt Date Exception = None




8. Save your work.

Enter two sites for this supplier.

9. Navigate to the Supplier Sites window by clicking (B) Sites. − Enter CO-DENVER as your site name. − Enter a street address, city, state and zip in the appropriate fields. Make one up

that’s in Denver, Colorado.

10. (T) General, enter the following: − Pay Site = check box − Purchasing Site = check box − Supplier Notification Method = Printed Document − Voice/Fax numbers = make them up




11. (T) Contacts, enter a contact name, title, telephone, etc. (maybe your favorite actor).

12. Save your work.

13. With your cursor in the Site Name field (NOT the Supplier Name field since you’ll be adding another site to this same supplier), click the Add New Record icon (green plus).

− Enter IL-CHICAGO as your site name. − Enter a street address, city, state and zip in the appropriate fields. Make one up

that’s in Chicago, Illinois.

14. (T) General, enter the following: − Pay Site = check box − Purchasing Site = check box − Supplier Notification Method = Printed Document − Voice/Fax numbers = make them up




15. (T) Contacts, enter a contact name, title, telephone, etc. (maybe your favorite author).

16. (T) Payment, indicate that this supplier has requested separate checks for each invoice (check the Pay Alone box), and that they’d like payments directed to the attention of the accounts receivable department (check the Attention AR box).

17. Save your work and write down your supplier number ______________.

Enter another new supplier, this one will be a 1099 Supplier.

18. Return to the Suppliers window and click on the Add New Record icon to initiate a new supplier record.

− Enter XX <Initials> Consulting Services Inc as the supplier name, being certain to replace the XX’s with your terminal number and use your initials.

− Enter 52-87632100 as the Taxpayer ID.

19. (T) General, enter 02-099 as your customer number.

20. (T) Classification, enter the following: − Type = Service − Small Business = Check Box − Woman Owned = You decide whether to check or not

21. (T) Control, enter Purchase Order as your invoice match option.




22. (T) Payment, enter the following: − Terms = 2/10 NET 30 − Payment Priority = XX (your terminal number) − Terms Date Basis = Invoice − Pay Date Basis = Discount − Exclude Freight from Discount = check box − Payment Method = Check

23. (T) Tax Reporting, enter the following: − Federal = Check − Income Tax Type = MISC7

24. (T) Purchasing, enter the following: − Ship-To Location = M1-Seattle − Bill-To Location = V1-New York City − Ship Via = DHL

25. (T) Receiving, enter the following: − Enforce Ship-To Location = Warning − Receipt Routing = Direct − Invoice Matching = 2-Way − Quantity Received Tolerance = 0% − Quantity Received Exception = Reject




− Receipt Date Exception = None

Enter a site for this supplier

26. Navigate to the Supplier Sites window by clicking (B) Sites. − Enter NY-NEW YORK as your site name. − Enter a street address, city, state and zip in the appropriate fields. Make one up

that’s in New York, New York.

27. (T) General, enter the following: − Pay Site = check box − Purchasing Site = check box − Supplier Notification Method = E-mail − Voice/Fax numbers = make them up − E-mail = make one up

28. (T) Contacts, enter a contact name, title, telephone, etc. (maybe another favorite actor).

29. (T) Control, enter $5,000 as the invoice amount limit.

30. (T) Tax Reporting, check the Income Tax Reporting Site box.

31. Save your work and write down your supplier number __________.




Practice - Adjust a Supplier Site

Overview

In this practice, you will do the following:

• Make adjustments to your previously entered suppliers

• Submit the New Suppliers/New Supplier Sites Listing to review your entries

Assumptions


• Responsibility selected to complete this practice is Purchasing, Vision Operations (USA).

Tasks

Log on to the System

Add two additional sites to your supplier named XX <initials> Consulting Services Inc.

1. Navigate to the Suppliers window.

• (N) > Supply Base > Suppliers.

Edit your supplier named XX Acme Supply.

Edit your supplier named XX <initials> Consulting Services Inc.

Your supervisor wants a daily report of all newly created suppliers and sites.




Solution - Adjust a Supplier Site


Add two additional sites to your supplier named XX <initials> Consulting Services Inc.

1. Navigate to the Suppliers window.

• (N) > Supply Base > Suppliers.

2. Using either Find or Query, locate the appropriate supplier.

3. N > to the Supplier Sites window by clicking (B) Sites. − Enter CA-SANFRANCISCO as your site name.

4. Enter a street address, city, state and zip in the appropriate fields. Make one up that’s in San Francisco, California.

5. (T) General, enter the following: − Pay Site = check box − Purchasing Site = check box − Supplier Notification Method = E-mail − Voice/Fax numbers = make them up − E-mail = make one up

6. (T) Contacts, enter a contact name, title, telephone, etc. (maybe your first grade teacher).

7. Save your work.

8. With your cursor in the Site Name field (NOT the Supplier Name field since you’ll be adding another site to this same supplier), click the Add New Record icon (green plus).

− Enter MA-BOSTON as your site name.

9. Enter a street address, city, state and zip in the appropriate fields. − Make one up that’s in Boston, Massachusetts.

10. (T) General, enter the following: − Pay Site = Uncheck box − Purchasing Site = Uncheck box − RFQ Only Site = check box − Supplier Notification Method = Printed Document − Voice/Fax numbers = make them up




11. (T) Contacts; enter a contact name, title, telephone, etc. (maybe your second grade teacher).

12. Save your work and write down your supplier number ___________.

Edit your supplier named XX Acme Supply.

13. Return to the Suppliers window and using either Find or Query, locate your supplier named XX Acme Supply.

14. N > to the Supplier Sites window by clicking (B) Sites.

15. Locate the IL-CHICAGO site.

16. (T) Control, change the invoice match option to be “receipt” for the IL-CHICAGO site only.

17. Save your work.

Edit your supplier named XX <initials> Consulting Services Inc.

18. Return to the Suppliers window and using either Find or Query, locate your supplier named XX <initials> Consulting Services Inc.

19. N > to the Supplier Sites window by clicking (B) Sites.

20. Locate the CA-SANFRANCISCO site.

21. (T) Payment, change the following: − Payment Terms = Immediate − Pay Date Basis = Due − Exclude Freight from Discount = Uncheck box

22. Save your work.

Your supervisor wants a daily report of all newly created suppliers and sites.

23. Navigate to the Submit a New Request window: N > Reports > Run.

24. Click OK to Single Request.

25. Name of report to submit is New Supplier/New Supplier Site Listing.

26. Enter the following parameters: − Start Date = Today − List Suppliers or Sites? = New Supplier Sites − Order By = Created By




27. (B) Submit

28. Write down your Request ID #__________.

29. Monitor progress of the report: N > (M) View > Requests.

30. Once completed normally, click on View Output and review the suppliers and sites that you have created (focus on suppliers with names beginning with your terminal number).




Maintaining Supplier and Supplier Site Information


• Changed values default only to new documents that you subsequently create

• Where to make the change?

Supplier

Existing Site A Existing Site B New Site C

Net 30

2/10, Net 30

Net 30 2/10, Net 30Net 30


Changed values default only to new documents that you subsequently create. For example, a change to the pay group for a supplier site, defaults to new invoices that you enter, but has no effect on existing invoices. Likewise, updating the payment terms at the supplier level will only change the payment terms that default to new supplier sites you create. If you want the changes to affect existing sites, then you must make the changes directly to the site. If you want the changes to affect new sites only, then you can make the changes to the supplier header. If you want the changes to affect both existing and new sites, then make the changes to both the supplier header and any existing supplier sites.




Avoiding Duplicate Suppliers


• Before setting up a new supplier, verify it doesn’t already exist.

• System requires unique supplier names. Relies heavily on strong naming conventions.

• Benefits of avoiding duplicate supplier entry

XYZ Inc. XYZ Inc The Sun Sun Inc Sun Co

Example #1 Example #2


Before setting up new suppliers or new sites, enter a query or use Find to verify that the supplier or site does not already exist. Potential duplicate suppliers can be identified through the following methods:

• Perform a Find or query on the supplier name • Submit and review the Suppliers Report • Submit and review the Supplier Audit Report to obtain a listing of suppliers whose names

are the same up to a specified number of characters • Submit the 1099 Suppliers Exception Report to obtain a listing of suppliers with the same

taxpayer ID. Solid naming conventions are key to avoiding duplicate entries. Avoiding duplicate supplier entry can benefit your company by:

• Preventing duplicate invoices and payments • Providing accurate supplier reporting • Improving system performance




If duplicate entries are found, consider using the Supplier Merge functionality to correct and consolidate records.




Merging Suppliers

Merging Suppliers

Run supplier audit report

ABC Corp

ABC Corporation

Review merge results

ABC Corporation

Merge suppliers

Identify duplicate suppliers

Maintain audit trail

Merging Suppliers

Purchasing Responsibility (N) Supply Base > Supplier Merge Use Supplier Merge functionality to combine two or more suppliers or sites that you identify as duplicates. Once the merge process is complete, the resulting site names for each supplier at the end of the process must be unique within that supplier. For example, the request to copy a site named “TX-DALLAS” to a supplier with a site already by that exact name would not be successful as it would result in duplicate site names for the same supplier after the merge. Where this situation exists, you will be required to rename one of the sites to a new name in order to affect the merge. You must decide whether the sites will be merged or copied to the new supplier. Sites that are copied will simply be added as a new site to the target supplier. Sites that are merged will be combined with the named site of the target supplier.




In addition, you need to decide the effect the merge will have on existing purchase orders and invoices.

• For purchase orders, you indicate whether you want all or none of the existing purchase orders to be updated with the new supplier/site names.

• For invoices, you can indicate whether you want all, only unpaid or none of the invoices to be updated with the new supplier/site names.




Data Example - Supplier Merge


Oracle CorporationTarget/Correct Supplier

Site NamesCA-REDWOODIL-CHICAGOVA-RESTONFL-ORLANDO

Oracle CorpIncorrect Supplier

Site NamesCA-REDWOODFL-ORLANDO

mergecopy


Because the CA-REDWOOD site of Oracle Corp will be merged into the existing CA-REDWOOD site of Oracle Corporation, it will not result in an additional, duplicate named site for Oracle Corporation. The FL-ORLANDO site has been selected for copying as a new site to Oracle Corporation. It too will result in a uniquely named site for Oracle Corporation. If there already was a FL-ORLANDO site for Oracle Corporation, and it turns out that the supplier has two sites in Orlando, then the merge process would have to be preceded by first adjusting the name of one or the other. You may decide to append a “-2” to the FL-ORLANDO site of Oracle Corp. After the merge completed, Oracle Corporation would have a FL-ORLANDO and a FL-ORLANDO-2 site. For best auditing results, transfer both paid and unpaid invoices to a new supplier and site so you can identify duplicate payments easily. Also, transfer purchase orders to a new supplier and site so all invoice and purchase order information refers to the same supplier. Note: The supplier merge process is permanent.




Merging Suppliers

Merging Suppliers

After you have merged suppliers, Payables automatically prints the following reports:• Purchase Order Header Updates Report• Supplier Merge Report

Merging Suppliers

The Supplier Merge Report will list invoices that could not be merged because they would result in duplicate invoice numbers for the same supplier. You’ll need to research these invoices and adjust as appropriate. Consider attaching both reports to each supplier header record to support the merge process completed. Additionally consider creating an attachment to be placed on both supplier header records documenting the discovery and research that supports how the merge was carried out in the system.




Agenda

Agenda

• Describe overview of suppliers• Define suppliers• Identify key standard reports• Understand setup options• Understand additional implementation

considerations




Reports

Reports

Suppliers Report

Supplier Audit Report

Supplier Payment History

Supplier Paid Invoice History

Supplier Mailing Labels

Purchase Order Header Updates Report

Reports

Suppliers Report Review supplier, supplier site, and supplier site contact information. Supplier Audit Report Review supplier names that are similar, to help identify potential duplicate suppliers. Supplier Payment History Review supplier payment history, including voided payments, for a supplier or a group of suppliers. Supplier Paid Invoice History Review the supplier invoice history, including discount and partial payment information, for a supplier or a group of suppliers. Supplier Mailing Labels Create mailing labels for supplier sites. Purchase Order Header Updates Report Review purchase orders updated by the Supplier Merge Process.




Reports

Reports

Supplier Balance Revaluation Report

Supplier Customer Netting Report

New Supplier/New Supplier Sites Listing

Vendor Affiliated Structure Listing

Vendors on Hold

Supplier Merge Report

Reports (continued)

Supplier Merge Report Review the suppliers, sites, and invoices updated by the Supplier Merge Process. Supplier Balance Revaluation Report Identify suppliers with credit (negative) balances. Supplier Customer Netting Report Review the net balance in Payables and Receivables for any suppliers or customers who have the same NIF or VAT code. New Supplier/New Supplier Sites Listing Review new suppliers and new sites created. Vendor Affiliated Structure Listing Review supplier parent-child relationships. Vendors on Hold View suppliers on hold and their outstanding purchase orders.




Reports

Reports

Supplier Open Balance Letter

Invalid PO Supplier Notice

Reports (continued)

Supplier Open Balance Letter Create a supplier open balance letter. You can use this report for auditing purposes or to periodically inform your suppliers of open balances. Invalid PO Supplier Notice Informing a supplier that you placed an invoice on hold because the supplier did not provide a purchase order number for matching or you could not use the purchase order number provided by the supplier. Payables creates a notice for each supplier with invoices to which you have manually applied an Invalid PO hold.




Summary

Summary

In this module, you should have learned how to:• Define suppliers• Define supplier sites• Identify key reports• Understand setup options• Understand additional implementation

considerations



Locations, Organizations, Units of Measure and Items Chapter 3 - Page 1

Locations, Organizations, Units of Measure and Items Chapter 3




Locations, Organizations, Units of Measure and Items

Locations, Organizations, Units of Measure and Items




Agenda

Agenda

• Describe Enterprise Structure• Define Locations• Define Inventory Organizations• Define Units of Measure• Define Item Categories and Catalogs• Define Items, Item Attributes and Item Controls• Create Item Templates




What Is an Item?

What Is an Item?

Assembly

Components

Option Classes

Supplies

What Is an Item?

An Item is defined as anything you make, purchase, or sell, including components, subassemblies, finished products, or supplies. Manufacturing also uses items to represent planning items that you can forecast, standard lines that you can include on invoices, and option classes you can use to group options in model and option class bills.




Oracle Applications Use Items


Order Management

Quality

Cost Management

Work in Process

Advanced Supply Chain

Planning

Material Planning

BOM/ENG

Inventory

Project Manufacturing

ManufacturingScheduling

Accounts Payable

Accounts Receviable

Depot Repair

Purchasing

Enterprise Asset

Managemet

Sales

Items


The applications in the tables above are not all inclusive but this is meant to give an understanding that the item definition is used in many different places in Oracle. Oracle Applications use a common data model and the item definition is an example of the a common data element that is used in many applications. It is the common data element that makes the integration across e-Business suite seamless. Each of the applications use the item in different ways. This will be described on the next page.




How Do Oracle Applications Use Items?


Production Receiving Invoices to Customer

Invoices from Suppliers

Shipments


This list is not all inclusive, but gives a general idea of how important the item is in Oracle Applications.

• Inventory - the item is used to stock, plan, cost and transact • Engineering and Bill of Material - the item is used to create a bill of materials and routing

as well as a component on a bill of materials. • Material Planning - The planning engine makes suggestions as to discrete jobs and

purchase requisitions based on supply and demand. The suggestions are for an item. • Quality - collect quality data on a item as you do move transactions in Work in Process,

complete assemblies in Work in Process, receiving and inspection transactions in Purchasing

• Cost - establishes a cost for the item based on one of the four perpetual costing methods (standard, average, FIFO and LIFO) and uses this as a foundation for valuing transactions.

• Purchasing - item is used on purchase order, requisition, request for quote, quotations and receipts




• Work in Process - create work orders for items • Receivables - customers can be billed for an item shipped to them • Order Management - place Sales Orders for an item • Shipping Execution - ships an item to a customer or to another organization • Advanced Supply Chain Planning and Scheduling - plans and schedules an item based on

criteria supplied • Project Manufacturing - transacts on a item that is linked to a project and task through

purchase order receipts, work order transactions, and inventory transactions • Sales - create quotes for an item • Depot Repair - create non-standard work orders for an item • Manufacturing Scheduling - schedules a work order or job for an item based on material

and resource constraints; resource instances are created as items • Enterprise Asset Management - create asset activities, asset groups and re-buildables

using the item definition in Inventory




Item Attributes

Item Attributes

Web OptionServiceInvoicingOrder Management

Work in ProcessLead TimeMRP/MPS

PlanningGeneral Planning

Physical AttributesReceivingPurchasingCosting

Enterprise Asset

ManagementBill of

MaterialInventoryMain

Item Attributes

Purchasing Responsibility (N) Items > Master Items Items have attributes which represent characteristics of an item. Items can be inventory items, they can be stockable, orderable, shippable, planned, have a lead time, purchased, and costed as well as many other attributes. Additionally, an item can be a piece of equipment or a vehicle. There are tabbed regions on the item master which divide the attributes into functional areas. Those tabs with a few examples are as follows:

• Main - attributes such as unit of measure, type of item • Inventory - inventory item, stockable and transactable, item controls • Bill of Material - BOM type • Costing - is the item costed? • Purchasing - purchased, purchasable, list price




• Receiving - receipt routing, over receipt tolerance • Physical Attributes - size, weight, truck, collateral • General Planning - make or buy, inventory planning • MRP/MPS Planning - MRP vs. MPS planned, order modifiers, time fences • Lead Time - processing, variable, fixed • Work in Process - build in WIP, supply type, over completion tolerance • Order Management - ordered, orderable, ATP • Invoicing - invoiced, invoiceable • Service - support service, serviceable product • Web Option - orderable on the web

All the attributes used together tell Oracle how the item can be used to execute business processes. Deciding on how to set item attributes is very important when implementing Oracle Applications. Companies need to think carefully about how their items are used and how they want to use them in Oracle before they start the implementation.




Items Have Statuses Which Represent the Life Cycle of the Item


Engineering

Purchased only

Prototype

Purchased or built in WIP

Active

Stockable, orderable,

invoiceable

Phase OutOrderable

InvoiceableTransactable

Inactive

Cannot do anything


Purchasing Responsibility (N) Setup > Item > Status Item statuses represent the life cycle of the item. The only statuses that come seeded with Oracle are Active and Inactive. Any other statuses that represent the life cycle of an item in your business will be user defined. By giving an item status, you can control key functionality of an item. The status of the item should represent where the item is in its life cycle. Changing the status of an item can be done by way of a concurrent request or manually. This is a customer decision as to how they want to handle. Status attributes enable and disable the functionality of an item over time. Each status attribute allows you to enable the item for a particular use. For example if you set the status attribute Purchasing to yes then you can place the item on a purchase order. The Item Status has a user defined set of Yes/No values for the status attributes. The values are applied to the status attributes when you choose an item status code when defining an item. For example, in the beginning of a product development cycle you can set the Item Status




attribute to Prototype with all of the status attributes defaulted to Yes except for Customer Orders Enabled. As an example, when the item is ready for production you can change the Item Status attribute to Active to allow all functions for the item. When defining an item you must set the item status by using the Item Status attribute. Status attributes are related to the item defining attributes. You cannot enable a status attribute if you do not set the corresponding item defining attribute to Yes. The item defining attribute determines whether the item could be assigned to the default category of the default category set of a specific functional area. The inventory item attribute controls whether the item would be assigned to the default category of the default category for inventory. The following are item defining attributes:

• Inventory Item • Purchased item • Internal Ordered Item • MRP/MPS Planning Method • Service Item • Costing Enabled • Engineering Item • Customer Ordered Item

If any of the above item defining attributes is set to Yes, then the item is automatically assigned to the default category set for the functional area. Category Sets will be discussed in a later section.




Item Attributes Used in Item Status

Item Attributes Used in Item Status

Invoicable

BOM Allowed

Internal Orders Enabled

Customer Orders Enabled

Purchasable

Build in WIP

Transactable

Stockable

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

No

No

No

Active Inactive

Item Attributes Used in Item Statuses

The item attributes above should be used together to represent the part as it goes through its life cycle. The two item statuses that come seeded with Oracle are Active and Inactive. The attribute settings for each of the status attributes with the two seeded statuses is given above. There is not a requirement to add additional statuses. The table above shows the item attribute settings for each status attribute for the respective status. Examples of additional statuses are:

• Prototype • Phase out

For example, in the prototype phase, the customer orders enabled and invoiceable attributes may be set to no and changed to yes when the status is changed to active. A prototype item may not be ready to ship to a customer. The company may need to be able to build it in WIP or purchase it. They may need to create a bill of material for the item or put the item on a bill of material but not sell the item at this point. Additionally, as a product is being phased out,




the attributes purchasable and build in WIP may be set to no so that existing stock is depleted. The company wants to get rid of existing stock. Users may define as many statuses as necessary to represent their business. The attributes and what they mean are given below so that the customer can decide how they want to use this functionality. The definitions of the status attributes above are given below:

• Stockable - Allows you to store the item in an asset subinventory • Transactable - Allows you to transact the item in Inventory, Order Management,

Purchasing and WIP • Build in WIP - Allows you to build the item on a discrete job and/or a repetitive schedule • Purchasable - Allows you to place the item on a purchase order • Customer Orders Enabled - Allows you to place the item on a sales order • Internal Orders Enabled - Allows you to create an internal sales order for the item • BOM Allowed - Allows you to create a bill of material for the item • Invoice Enabled - Allows you to create an invoice for the item




Item Master Organization and Child Organizations

Item Master Organization and Child Organizations

Inventory Organization 1


Items are created in the Master Org and assigned to the Child Orgs

Parts Listing - no Transactions

Transactions

All of the above are Inventory Organizations

Item Master

Item Master Organization and Child Inventory Organizations

Item Master Organization Usually the first inventory organization that is set up. Its single purpose is for entering items. It has no subinventories and is not used for inventory transactions. The item master can be thought of as a parts list. Oracle suggests that a customer create at least two inventory organizations, an item master and an inventory organization. If you only create one organization and ever decide to expand to more than one organization, the initial decisions made at implementation may restrict what you can do. For example, during implementation you will decide where to control item attributes. Are they controlled at the item master or at the individual organization level. A company with only one organization is not impacted by this but if you ever add an additional organization later, the attribute controls will be harder to change. It is not a requirement to have more than one inventory organization but is suggested. Child Organizations An inventory organization with at least one subinventory that is set up for processing inventory transactions. It is not used to enter items. It gets a list of items from the master. Create as many inventory organizations as you need to meet business requirements. Items are created in the item master and assigned to the child organization(s).




Items are entered in an item master organization and then assigned to be used in child organizations. Note: One item master is recommended and can cover multiple sets of books. It is much easier to add an inventory organization and assign items to the new organization than it is to copy from one item master to another once the data has been entered. Carefully consider the business reasons why you need two item masters.




Creating an Item

Creating an Item

Enter Item Name

Modify Attributes if necessary

Assign to Inventory

Organization

Apply template, copy from an existing item,

or create the item manually

Save to the database

V1

M1 M3

Creating an Item

Purchasing Responsibility (N) Items > Master Items An item is created by either importing the it through an open interface or navigating to the master item form. The process is as follows:

• Give the item a name and description. • Establish the attributes by copying an existing item, template or enabling each attribute

individually. • Make changes to the Primary unit of measure if necessary and any other attributes. • Save your work. • Assign the item to the appropriate organization(s). • Make changes to attributes at the organization level if appropriate. • Save your work.




Setup, Define and Maintain Items

Choose Item Attribute Control Levels

DefineStatusControlLevels

DefineStatuses

DefineCategory

Sets

1

DefineDefault

CategorySets

DefineUOMs

DefineCategories

CreateTemplates

DefineCatalogs



The UOM will be determined as part of Enterprise Structure creation and already be in place when this process begins. Determine what the item attribute controls will be. Are you going to control each attribute at the master level or the organization level? Are you going to have centralized control (master) or decentralized control (org)? This is determined by attribute. Determine how you are going to use statuses. Are you going to add additional statuses to active and inactive? If so, what are the statuses? The new statuses need to be defined. Create at least one category and category set, all items are assigned to a category set and category when they are defined. Define as many categories as necessary to meet your needs. Review the seeded templates and determine whether to create the item templates or use the seeded templates. Determine whether you want to copy items to create new items. Use the templates and existing items to define items. Enter values for additional item attributes or make changes to the attributes seeded on the templates.

• Assign a status to the item. • Assign categories to the item.




• Assign the item to a catalog • Enable the item in other organizations. • Update the organizational-level attribute values. • Define the item relationships. • Search for items. • Define item costs.





Copy items

Enter attribute values

Enable in child organizations

Update organization level attributes

Define item costs

Copy templates

1





Describing Attribute Control at Master Level



Item Master


Inventory Item - Yes

Inventory Item - YesInventory Item - Yes


Item attributes Specific characteristics of an item, such as order cost, item status, revision control, Cost of Goods Sold account, etc. Each item attribute is controlled at the master level organization or the child organization. Item attribute control level To maintain item attributes at the item master attribute level or the organization specific level by defining item attribute control consistent with your company policies. For example, if your company determines serial number control at headquarters regardless of where items are used, you define and maintain serial number attribute control at the item master level. If each organization maintains serial number control locally, they maintain those attributes at the organization specific level. Attributes Controlled at the Master Level An item has the same value for such attributes in all organizations in which it is defined. You can enter and update the values of Master-level attributes only by using the Master Item window. Inventory reflects your changes in all organizations that carry the item. Attributes Controlled at the Organization Level




An item may have different values for such attributes in each organization in which it is defined. When you define your items in the item master, you can specify defaults for organization-level attributes. You can update the values of organization-level attributes only by using the Organization Item window in each organization that carries the item.




Describing Attribute Control at Child Level

Describing Attribute Control at Child Level

Make/Buy = Make

Make/Buy = MakeMake/Buy = Buy


Item Master


Describing Attribute Controls at Child Level

Changes to attributes If the attribute is controlled at the master level, then any change to the attribute at the master will be populated to the child organizations. Child organizations will not be able to change attributes that are controlled at the master level. If the attribute is controlled at the child level, then any change to the attribute at the master will not be populated to the child organizations. If one or more child organizations are impacted, each one will have to be changed separately. In the example above, if you change the Make/Buy flag to Make in Organization #1, this will not change the attribute at the master level or in any other organization. If the attribute control was at the master level, then changing the make/buy flag to buy at the master level would change each child organization. If you have BOM installed, then the following attributes will need to set at the child level. This is because Oracle does not share resources across organizations.

• Costing enabled




• Inventory Asset Value Note: The customer will determine what their item validation organization is for products that are at the operating unit level. This is because the product can cover multiple inventory organizations. For example, the buyers may buy for many inventory organizations so there is one central spot which is set in the purchasing setups that tells Oracle this is a valid item to be purchased. The same is true for Order Management. Order Management validates against an item validation organization to see whether an item is valid for a sales order and shipment. Therefore, the item master generally serves this purpose as all the items are in the master item organization. This includes but is not limited to Order Management, Purchasing, Accounts Receivable, and Accounts Payable. Consider how attributes such as Purchasable, Customer Orders Enabled, Customer Ordered, Purchased, Invoice Enabled, Invoiceable are set at the master level.




Describing Item Status Attribute Controls


YesNot UsedNoInvoice enabled

YesDefaults ValueYesInternal Orders Enabled

NoSets ValueNoCustomer Orders Enabled

YesDefaults ValueYesBuild in WIP

YesNot UsedYesPurchasable

NoSets ValueNoBOM Allowed

NoSets ValueYesTransactable

NoSets ValueYesStockable

Can I change?Status SettingAttribute ValueAttribute


In addition to deciding whether the item attribute will be controlled at the master or the child level, each of the status attributes also has a status attribute control. The status setting level determines whether you can update the value of each status attribute within an item status. There are three status attribute controls and they are as follows:

• Sets Value - The status that you assign to the item loads a non-updateable value into the status attribute. You can update the status attribute by changing the status that you assigned to your item.

• Defaults value - The status that you assign to the item loads a default value into the status attribute. You can update the status attribute as you define your item.

• Not Used - The status that you assign to the item does not determine the value of the status attribute. You can enable or disable the status attribute as you define your item.

Consider the following example: Item Attribute Setting Status setting Attribute control level




BOM Allowed Yes Sets Value Master Purchasable No Defaults value Master Stockable No Not used Child

In the above example, when you define the item, use a status with the above attributes. If you want to make changes to those attributes at the Master level, you would be able to change Purchasable and Stockable but not BOM Allowed. The reason is that BOM Allowed has a value of Sets Value. If you wanted to change purchasable at the child level, you would be unable to even though the status setting is Defaults Value because the attribute control level is Master. Setup considerations for status attribute settings:

• You have the flexibility to change individual status attribute settings. • Using meaningful status codes gives you control over item usage. In other words, using a

status other than active and inactive may help you to run a business more smoothly.




Describing Status Attribute Dependencies


Invoicable Item is set to NoNoInvoice Enabled

Internal Ordered Item is set to NoNoInternal Orders

Enabled

Customer Ordered Item is set to NoNoCustomer Orders

Enabled

Inventory item is set to No or BOM item Type is NOT set to

StandardNoBuild in WIP

Purchased is set to NoNoPurchasable

Inventory Item is set to NoNoBOM Allowed

Stockable is set to NoNoTransactable

If Inventory item is set to NoNoStockable

Dependency1Must set toAttribute


Each status attribute is dependent on at least one other attribute. For example you cannot have Stockable set to yes if you have Inventory Item set to No. These dependencies are enforced when the item attributes are set. You will not be able to go any further if the dependencies are not satisfied. The table above explains the dependencies.




Describing Item Attributes - Inventory


Inventory item Stockable Transactable


Item attributes are the collection of information about an item. For example, if an item is sold to a customer and if one is a distribution facility an item may have the following attributes:

• Inventory Item - enabled • Costing Enabled - enabled • Inventory Asset Value - enabled • Purchased - enabled • Purchasable - enabled • Customer Orders Enabled - enabled • Customer Ordered - enabled • Invoice Enabled - enabled • Invoiceable - enabled • Shippable - enabled • Make/Buy - buy • MRP Planning - MRP Planning




However, another similar item may have different characteristics. The item attributes should reflect how the company uses the item. In the first example, even though the items were similar, the company has found it more effective to buy the first item and make the second item.

• Inventory Asset Value - enabled • Purchased - enabled • Purchasable - enabled • Customer Orders Enabled - enabled • Customer Ordered - enabled • Invoice Enabled - enabled • Invoiceable - enabled • Shippable - enabled • Make/Buy - make • MRP Planning - MPS Planning

When you define an item, Inventory enforces particular relationships between some of the item attributes:

• Required Attributes - You must enter a value for the attribute based on the settings for other related attributes.

• Interdependent Attributes - You can only enter certain values depending on other attribute values.

• Updateable Attributes - You can update values under certain conditions. • Control Level Dependencies - You can update the control level of some attributes only

under special conditions and with certain consequences. Note: The list above is not all inclusive of the inventory attributes as there are additional attributes for Warehouse Management System and the CRM products. This list gives the most used attributes for a manufacturing or distribution facility. Below are the definitions of each of the above attributes:

• Inventory Item - Indicate whether the item is a valid item in Inventory. You must turn this option on if you want to enable the following item attributes: Stockable, BOM Allowed, Transactable, and Build in WIP.

• Stockable - Indicate whether to stock this item in Inventory. You can set this attribute only when you turn on the Inventory Item option. Turning this option on enables you to set the Transactable item attribute. This attribute is optionally set by the Item Status code

• Transactable - Indicate whether to allow Inventory transactions. You can set this attribute only when you turn on the Stockable option. This attribute is optionally set by the Item Status.

• Check material shortage - Indicate whether the system will check this item for material shortages. Turn this option on to trigger a material shortage alert and shortage notification during transactions of this item.




• Revision control - Indicate whether to track inventory balances by revision. If you turn this option on you must specify an existing revision number for issues and receipts.

• Attention - You cannot change revision control when an item has quantity on hand. If Revision Control is controlled at the Master Item level, the check for on-hand quantity is against the sum of on-hand quantities in all child organizations.

• Serial Generation - At inventory receipt - Create and assign serial numbers when you receive the item. Thereafter, for any material transaction, you must provide a serial number for each unit.

• At sales order issue - Create and assign serial numbers when you issue (ship) the item against a customer sales order. (Internal requisition orders do not require a serial number when you ship the item.) If you receive an item on an RMA (return material authorization), you must specify the same serial numbers you created at sales order issue. All other material transactions for this item bypass serial number information.

• No control - Serial number control not established for this item. All material transactions involving this item bypass serial number information.

• Predefined - Assign predefined serial numbers when you receive the item. Thereafter, for any material transaction, you must provide a serial number for each unit.

• Cycle Count Enabled - Cycle Count Enabled. • Reservable - Indicate whether you can create material reservations. You can reserve an

item only when you have sufficient inventory. Notes: Reservation control for a subinventory overrides reservation control for an item. In other words, if an item is reservable but a subinventory is not, the item quantity in that subinventory is not reservable. If the reservable attribute is checked, Order Management allows reservation of the item during order entry. If material hasn't been reserved prior to pick release, pick release creates reservations for material when the pick wave move order is detailed.

• Locator Control - Dynamic entry - Define locators when you use them, either as you receive or ship items.

• No control - Locator control not established. • Prespecified - Define locators before you use them.

For Order Management, if an item is Reservable, you can manually reserve a specific locator at order entry or let pick release use Inventory picking rules to suggest the locator when the order is picked. If the item is not Reservable, Inventory picking rules will suggest the locator when the order is picked.

Locator control for an organization or for a subinventory overrides locator control for an item. You cannot change locator control when an item has quantity on hand.

• Lot Control - No control, do not establish lot control for the item. • Full control - Track inventory balances by lot number. You must specify a lot number

for issues and receipts.




You can establish lot number control only for an item that has no quantity on hand. If Lot Control is controlled at the Master Item level, the check for on-hand quantity is against the sum of on-hand quantities in all child organizations.

For Order Management, if an item is Reservable, you can manually reserve a specific lot at order entry or let pick release use Inventory picking rules to suggest the lot when the order is picked. If the item is not Reservable, Inventory picking rules will suggest the lot when the order is picked.




Describing Item Attributes - Purchasing


Purchased Invoice Matching

List Price Default Buyer


Below are the purchasing attributes and a description of how they are used. Purchased ORACLE PURCHASING ONLY Indicate whether to purchase and receive an item. Turning this option on allows you to set the Purchasable attribute. This is an item defining attribute. If you turn this option on, the item is automatically assigned to the default category set for the Purchasing functional area. Purchasable ORACLE PURCHASING ONLY Indicate whether to order an item on a purchase order. You can set this only when Purchased is turned on. Turning Purchasable off allows you to temporarily restrict the ability to buy. This attribute is optionally set by the Item Status code Use Approved Supplier ORACLE PURCHASING ONLY




Indicate whether to use only approved suppliers. If you turn this option on, Purchasing prevents you from approving a purchase order for an item if you do not use an approved supplier. Allow Description Update ORACLE PURCHASING ONLY Indicate whether to allow updates to the item description on a purchasing document line for an item. RFQ Required ORACLE PURCHASING ONLY Indicate whether to require an item quotation when requesting an item. Purchasing defaults this value on requisition lines for this item. Leave this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions involving this item. Outside Processing Item ORACLE PURCHASING ONLY Indicate whether you can add the item to an outside processing purchase order line. You can turn this option on only if Purchased is also on. In addition, this option controls whether you can attach an item to a resource in the Resource window. Outside Processing Unit Type ORACLE PURCHASING ONLY Select an option to determine the quantity of an outside processing item you requisition, purchase and receive:

• Assembly - You purchase an outside processing item based on the number of assemblies you ship to the supplier.

• Resource - You purchase an outside processing item based on the number of assemblies times the resource usage rate or amount.

Taxable ORACLE PURCHASING ONLY Indicate whether the supplier charges a tax. Purchasing uses the taxable status together with the tax code you associate with a location to determine whether a purchase order shipment is taxable, and what the tax code that applies to this shipment. Leave this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions involving this item. Receipt Required ORACLE PURCHASING ONLY Indicate whether you must receive an item before you can pay the invoice. Leave this field blank if you want Inventory to use the value defined in the Purchasing Options window for transactions involving this item. Although a receipt is required to pay the invoice, This is not the same as 3-way matching. Inspection Required ORACLE PURCHASING ONLY Indicate whether to inspect an item upon receipt from the supplier before paying the corresponding invoice. Leave this field blank if you want Inventory to use the value defined in




the Purchasing Options window for transactions involving this item. Although inspection is required to pay the invoice, this is not the same as 4-way matching. Default Buyer ORACLE PURCHASING ONLY Enter the buyer assigned to purchase an item. Purchasing displays the buyer you enter here as the suggested buyer for a requisition.. Unit of Issue ORACLE PURCHASING ONLY Enter the unit of measure you typically use to issue the item from inventory. Purchasing uses this as the default for internal requisition lines sourced from inventory. You use units of issue to round order quantities, minimizing shipping, warehousing, and handling costs. The unit of issue must be the same for all units of measure belonging to the same unit of measure class as the primary unit of measure. Receipt Close Tolerance ORACLE PURCHASING ONLY Enter the percentage tolerance Purchasing uses to automatically close purchase order shipments. Purchasing automatically closes a shipment when your unreceived quantity is within the quantity tolerance percentage of the shipment. For example, if the original shipment quantity is 50, and you enter 10 here (10%), Purchasing automatically closes the shipment for receiving when you receive 45 or more. Closed for Receiving is a status change only. You can receive additional items against the shipment later. Invoice Close Tolerance ORACLE PURCHASING ONLY Enter the percentage tolerance Purchasing uses to automatically close purchase order shipments. Purchasing automatically closes a shipment when your uninvoiced quantity is within the quantity tolerance percentage of the shipment. For example, if the original shipment quantity is 50, and you enter 10 here (10%), Purchasing automatically closes the shipment for invoicing when you invoice match 45 or more. Closed for Invoicing is a status change only. You can invoice match additional items against the shipment later. UN Number ORACLE PURCHASING ONLY Enter the United Nations identification number. Purchasing uses UN numbers to identify specific materials (hazardous materials, for example) for international trade purposes. Hazard Class ORACLE PURCHASING ONLY Purchasing uses hazard classes to identify categories of hazardous materials for international trade purposes. List Price ORACLE PURCHASING ONLY Enter the value that Purchasing uses as the default price on a purchase order, requisition, RFQ, or quotation. Receivables uses this value as the default unit selling price on a transaction. Note




that this is the original inventory item price used by Purchasing and therefore should be used as a guide only. Market Price ORACLE PURCHASING ONLY Enter the market value for an item. Purchasing copies the market price to the purchase order lines you create. Price Tolerance ORACLE PURCHASING ONLY Enter the price tolerance percent, the maximum price percentage over the normal price range for an item. For example, if the tolerance percent is 5, the maximum acceptable price on a purchase order is 5% over the requisition price. Any purchase order price 5% above the requisition price is unacceptable, and you cannot approve the purchase order. Rounding Factor ORACLE PURCHASING ONLY Enter a number between 0 and 1. This factor determines how to round the quantity on an internal requisition that results from conversions between the requisition line unit of measure and the item's Unit of Issue. This factor insures that the unit of issue resolves to an integer, rather than a fractional amount. For example, suppose the requisition line unit of measure is each, and the unit of issue is dozen. For an internal requisition of 20 each, Purchasing converts the order quantity to 1.75 dozen. With a rounding factor of 0.6, Purchasing rounds up the order quantity to 2 dozen. (Rounding factor of 0.75 also rounds up to 2 dozen.) With a rounding factor of 0.8, Purchasing rounds down to 1 dozen. Purchasing either performs rounding automatically or advises you of the suggested quantity depending how you set your purchasing options. This attribute is controlled at the Organization level only. Expense Account This attribute is controlled at the Organization level only. Enter the default inventory account for expense items. This attribute is used only when Inventory Asset Value is turned off. Purchasing debits this account when you receive an item into inventory only if the item is being expensed. If you receive into an expense subinventory, Purchasing uses this account first; if you do not define the account here, Purchasing uses the expense account you assigned to the subinventory. Asset Category ORACLE PURCHASING ONLY Enter the asset category to which the item belongs. Assets uses this to classify your fixed assets. All assets in a category share default information, such as the accounts used when you post to the general ledger. You can enter this field only if you use Assets. Internal Ordered ORACLE PURCHASING ONLY Indicate whether to allow an item to be ordered on an internal requisition. If you turn this attribute on, you can temporarily exclude an item from being ordered on an internal requisition by turning Internal Orders Enabled off. This is an item defining attribute. If you turn this attribute on, the item is automatically assigned to the default category set for the Purchasing functional area.




Internal Orders Enabled ORACLE PURCHASING ONLY Indicate whether you can currently order an item internally. If you turn this attribute on, you can specify the item on an internal requisition if Internal Ordered Item is also on. If you turn Internal Ordered Item on, you can temporarily exclude an item from being ordered on an internal requisition by turning this attribute off. This attribute is optionally set by the Item Status code.




Describing Item Attributes - Receiving


Receipt Date Controls

Receipt RoutingValid Transactions

Overreceipt Quantity Control


Receipt Date Action ORACLE PURCHASING ONLY

• None - No receipt date exception enforced. • Reject - Reject receipts when the receive date is outside the range defined by Days Early

Receipt Allowed or Days Late Receipt Allowed. • Warning - Display a warning message if you attempt to receive an item outside the range

defined by Days Early Receipt Allowed or Days Late Receipt Allowed, but perform the receipt, anyway.

Receipt Days Early ORACLE PURCHASING ONLY Enter the number of days before the promise date you can receive an item without warning or rejection. For example, if you enter 3 and the promise date is a Friday, you can receive the item on Tuesday without receiving a warning message. Note that Purchasing uses regular calendar days (including weekends and holidays) in this calculation. If the promise date does not exist, Purchasing uses the need by date.




Receipt Days Late ORACLE PURCHASING ONLY Enter the number of days after the promise date you can receive an item without warning or rejection. For example, if you enter 2 and the promise date is a Monday, you can receive the item on Wednesday without receiving a warning message. Note that Purchasing uses regular calendar days (including weekends and holidays) in this calculation. If the promise date does not exist, Purchasing uses the need by date. Overreceipt Quantity Control Action ORACLE PURCHASING ONLY

• None - No over tolerance enforced. • Reject - Reject receipts over the tolerance quantity. You receive an error message and

are prevented from receiving quantities exceeding the order quantity by more than the Quantity Received Tolerance percent.

• Warning - A warning message displays if you accept receipts over the quantity determined by the Overreceipt Quantity Control Tolerance percent, but does perform the receipt.

Overreceipt Quantity Control Tolerance ORACLE PURCHASING ONLY Enter the quantity received tolerance percent, the maximum acceptable over-receipt percentage, used by the Overreceipt Quantity Control Action attribute. For example, if the tolerance percent is 5, then the acceptable quantity on a receipt transaction is within 5% of the quantity you order on a purchase order line. Any quantity more than 5% over the order quantity is unacceptable. Allow Substitute Receipts ORACLE PURCHASING ONLY Indicate whether to allow receipt of defined substitutes in place of this item. You define valid substitutes with the Item Relationships window. Leave this field blank if you want Inventory to use the value defined in the Receiving Options window for transactions involving this item. Allow Unordered Receipts ORACLE PURCHASING ONLY Indicate whether you can receive an item without a purchase order. If this option is on, you can later match the receipt to the appropriate purchase order. If this option is off, all receipts for an item must have a corresponding purchase order. Leave this field blank if you want Inventory to use the value defined in the Receiving Options window for transactions involving this item. Express Transactions ORACLE PURCHASING ONLY Indicate whether you can deliver all distributions for this item with one data entry transaction if the quantity to deliver equals the purchase order line balance. If this option is turned off, you must deliver individual distributions separately. Leave this field blank if you want Inventory to use the value defined in the Receiving Options window for transactions involving this item. Receipt Routing




ORACLE PURCHASING ONLY • Direct - At receipt, deliver an item directly to its location. • Inspection - Receive an item first, inspect it, then deliver. • Standard - Receive an item first, then deliver without inspection.

Enforce Ship-To ORACLE PURCHASING ONLY Select an option to control whether the supplier can deliver to a location that differs from the ship-to location defined on the purchase order:

• None - No ship-to location enforced. • Reject - Prevent receipt of items not received to their purchase order ship-to location. • Warning - Display a warning message if you attempt to receive an item to a location that

differs from the purchase order ship-to location, but perform the receipt, anyway.




Guided Demonstration - Create an Expense Item (Required)


(N) Change Organization

Create an Expense Item

1. From the list of values, choose M1-Seattle Manufacturing and click OK

Note: Although we chose M1-Seattle Manufacturing, the item will be added to the item master associated with M1-Seattle Manufacturing. After creating the item, we’ll enable it in the inventory organizations (warehouses) that purchase and potentially stock the item. Generally there is only one item master but that is not always the case.

2. Open the Master Item window:

3. (N) Items > Master Items

4. Item = XXSoftware

5. Description = Expensed Item

6. Primary Unit of Measure = Each

7. Item Status field = Active

8. (T) Purchasing

9. Purchased = Checked

10. Purchasable = Checked

11. Buyer = Your name

12. Use Approved Supplier = Unchecked

Note: The difference between Purchased and Purchasable is that Purchased is the TYPE of item. Because we are selecting Purchased, we’ll have to assign a category from the Purchasing Category Set. Purchasable is a flag that determines if the item can currently be used on a purchase order.

Note: If you choose Use Approved Supplier, in order to enter the item on a purchase order and be able to approve the purchase order, there must be an approved supplier list created. In the Vision environment, the Use Approved Supplier is controlled at the inventory organization level.

13. List Price = 450




14. Expense Account = 01-510-7530-0000-000

15. Save

16. (T) Receiving

17. In the Receipt Date Control area’s Action field, use the list of values to select Warning.

18. Days Early = 5

19. Days Late = 5

20. Allow Substitute Receipts = Yes

21. Allow Unorded Receipts = Yes

22. Allow Express Transactions = Yes

23. Receipt Routing = Standard

24. Enforce Ship-To = Warning

Assign the Item to a Purchasing Category

25. (M) Tools > Categories

26. Override the category to XX.COMPUTER

27. Save

Enable the Item in an Inventory Organization

28. (M) Tools > Organization Assignment

29. Assign the item to the following inventory organizations:

Org Name Assigned

M1 Seattle Manufacturing Checked

M2 Boston Manufacturing Checked

M3 Dallas Manufacturing Checked

30. Save and close the Organization Assignment and Master Item windows.




Guided Demonstration - Create an Inventory Item (Required)


(N) Items > Master Items

Create an Inventory Item

1. Item = XXMonitor

2. Description = Inventory Item

3. (T) Main


5. Item Status = Active

6. (T) Inventory

7. Inventory Item = Checked

8. Save

Note: By selecting Inventory, we’ve defined the item to be an inventory item…an item that will be stocked in a warehouse. The Stockable and Transactable attributes determine what actions may be taken on the item.

9. (T) Purchasing




13. Buyer = Your name


15. Save

16. (T) Receiving

17. In the Receipt Date Controls area’s Action field, use the list of values to select Warning.

18. Days Early = 5




19. Days Late = 5

20. Allow Substitute Receipts = Yes

21. Allow Unordered Receipts = Yes

22. Allow Express Transactions = Yes

23. Receipt Routing field = Standard


25. Save




28. Save




Org Name Assigned




31. Save

32. Close the Organization Assignment and the Master Item windows.




Guided Demonstration - Create an Item for a Routinely Purchased Asset (Required)


(N) Items > Master Items

Create an Item that will be Capitalized and Depreciated after Purchase

1. Item = XXComputerPC

2. Description = High Speed Computer


4. Item Status field = Active

5. (T) Purchasing




9. Default Buyer = Your name


11. Asset Category = COMPUTER-PC

12. Save

13. (T) Receiving

14. In the Receipt Date Control area’s Action field, use the list of values to select Warning.

15. Days Early and Days Late = 5

16. Select Reject for the Overreceipt Quantity Control Action

17. Tolerance = 0

18. Allow Substitute Receipts = No

19. Allow Unordered Receipts = Yes

20. Receipt Routing = Standard





22. Save




25. Save



27. Assign the item to the following inventory organization:

Org Name Assigned


28. Save

29. (B) Org Attributes

30. (T) Purchasing

31. Expense Account = 01-000-1570-0000-000

32. Save

33. Close windows until you are back at the Navigator




Practice - Create Items

Overview

In this practice you will create items that you will write a purchase order for and finally receive in subsequent practices.

Assumptions

• Replace XX with your terminal number or initials.


Tasks


Log on to the system using the following information. − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations


Create an item that will be expensed. Use the following information:

4. Open the Master Item window − Item = XXSoftware − Description = Expensed Item − Primary Unit of Measure = Each − Item Status field = Active − Purchased = Checked − Purchasable = Checked − Buyer = Stock, Ms. Pat − List Price = 450 − Expense Account = 01-510-7530-0000-000 − In the Receipt Date Control area’s Action field, use the list of values to select

Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing = Standard − Enforce Ship-To = Warning






Org Name Assigned




Create an Inventory Item − Item = XXMonitor − Description = Inventory Item − Primary Unit of Measure = Each − Item Status = Active − Inventory Item = Checked − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Buyer = Stock, Ms. Pat − List Price = 250 − In the Receipt Date Controls area’s Action field, use the list of values to select

Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing field = Standard



Org Name Assigned




Create an Item that will be Capitalized and Depreciated after Purchase − Item = XXComputerPC




− Description = High Speed Computer − Primary Unit of Measure = Each − Item Status field = Active − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Default Buyer = Stock, Ms. Pat − List Price = 1200 − Asset Category = COMPUTER-PC − In the Receipt Date Control area’s Action field, use the list of values to select

Warning. − Days Early and Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing = Inspection



Org Name Assigned







Solution - Create Items



1. (N) Change Organization


3. (N) Items > Master Items − Item = XXSoftware − Description = Expensed Item − Primary Unit of Measure = Each − Item Status field = Active − (T) Purchasing − Purchased = Checked − Purchasable = Checked − Buyer = Stock, Ms. Pat − Use Approved Supplier = Unchecked − List Price = 450 − Expense Account = 01-510-7530-0000-000

4. Save




5. (T) Receiving

6. In the Receipt Date Control area’s Action field, use the list of values to select Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing = Standard − Enforce Ship-To = Warning

7. Save







Org Name Assigned




10. Save

11. Close the Organization Assignment and Master Item windows.


12. (N) Items > Master Items − Item = XXMonitor − Description = Inventory Item




13. (T) Main − Primary Unit of Measure = Each − Item Status = Active

14. (T) Inventory − Inventory Item = Checked

15. Save

16. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Buyer = Stock, Ms. Pat − List Price = 250

17. Save




18. (T) Receiving

19. In the Receipt Date Controls area’s Action field, use the list of values to select Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing field = Standard

20. Save







Org Name Assigned




23. Save


Create an Item that will be Capitalized and Depreciated after Purchase

25. (N) Items > Master Items − Item = XXComputerPC − Description = High Speed Computer − Primary Unit of Measure = Each




− Item Status field = Active

26. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Default Buyer = Stock, Ms. Pat − List Price = 1200 − Asset Category = COMPUTER-PC

27. Save

28. (T) Receiving

29. In the Receipt Date Control area’s Action field, use the list of values to select Warning. − Days Early and Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing = Inspection

30. Save





Org Name Assigned







Define Item Relationships - Purchasing


Types of item relationships

Manufacturer Part Numbers - Supplier

Item Number

Related items

Substitute Items


Purchasing Responsibility (N) Items > Item Relationships All of the options aid in helping to search for items. Use the item relationships forms to establish the following:

• Cross-References types - For example, if you renamed your items, you might want to establish a cross reference between the old item number and the new item number. In this example, you would need to establish the type of cross reference such as old number. After the relationship is established, the user would assign the items to the type.

• Related and Substitute Items - use the item relationships form to establish substitute and related item relationships. The substitute items are used by purchasing when the allow substitute item functionality is needed in receiving. If the supplier ships a part that is not on the purchase order, if Allow Substitutes is valid for that item, and if the substitute relationship is established, the receiving group can receive the substitute part.




Additionally, for each part, you will need to determine whether this is a reciprocal relationship for the item. Manufacturer’s Part Number You can establish suppliers and their part numbers on the Manufacturer Part Numbers form and link them to your item numbers. This will aid in item search.




Agenda

Agenda

• Describe Enterprise Structure• Define Locations• Define Inventory Organizations• Define Units of Measure• Define Item Categories and Catalogs• Define Items, Item Attributes and Item Controls• Create Item Templates




Describing Item Templates


What attributes are being enabled each time an item is created?

Use a template to enable those attributes with one keystroke as opposed to many

The result: only the item attributes in your template applied to new item


Item templates are used to make your work easier. There are over 190 attributes. It can take time to go through more than 190 attributes and determine which ones should be enabled especially if the same type of item is entered repetitively. Item Templates are designed to meet that need. An item template contains values for any number of item attributes. When an item is created and a template applied, the values on the template are copied to the item so that each attribute does not have be addressed individually. Note: The item status and primary unit of measure are item attributes and are on the templates. If you want to use the life cycle approach to parts, you may want to consider leaving these fields blank and forcing the user to enter the value when the item is created. Additionally, the item status and primary unit of measure can also be defaulted via profile option. You may want to consider leaving this null as well.




Creating Item Templates


Copy from an existing or predefined template; make changes as necessary to

meet your business needs

Start from Scratch and create a template that is

meaningful to you


Purchasing Responsibility (N) Setup > Item > Templates There are several options with respect to creating item templates:

• Use Predefined Templates - there are templates that come pre-defined with Oracle. Examples include Finished Good, Planning Item, Purchased Item and Kit.

• Create your own template. This can be done in one of two ways. • Use an existing template and copy to a new template. Give the template a new name. • Create a template from scratch.

No matter which option you choose in defining templates, Inventory will apply only those attributes to an item which are enabled. If the attribute is not enabled, then the attribute will not be applied to the item.




Note: It is advisable to keep the predefined templates intact and not make changes to what comes with Oracle. It is better to create your own template by copying a predefined template and giving a name that is meaningful to your organization. This is because if you ever need the original template for reference, you will have it. If you make changes to a template, the changes will be effective the next time you use the template. Changes are not applied retroactively.




Using Item Templates


Apply the template to a

new item being created

Make changes and deletions as necessary

Verify you have the attributes you want on

the item!


Use Item templates to quickly apply attributes to an item. Templates can hold a complete set of attributes or a partial set. If a partial set, then only values stored in the template overwrite those on the item. More than one template can be applied, however, if more than template is applied, the last template applied is the one whose attributes will be enabled for that item. After the template(s) is used, make changes as necessary to a particular item. An item template can be changed, however, the changes are prospective and do not affect any items already created using that template. If you are changing an attribute more than 50% when using the same template, it might be better to change the attribute on the template.




Example of Using a Template


YesYesNoNoYesRevision Control

1515NullNo10StandardLot Size

MakeMakeBuyYesBuyMake/Buy

Value on item

Change Value

Value after

template applied

Enabled on

template

Value of attribute

on template

Attribute


In the example above, a template was created but not all the attributes were enabled. The table shows that those attributes were not applied and had to be enabled manually. Additionally, even if an attribute is enabled, you can still change the value once the template is applied as long as it does not violate any of the dependencies.




Additional Setup Considerations

Additional Setup Considerations

What role will do this? Who will have access?

Ongoing item addition and maintenance

Is there going to be an analysis of what is not

needed?

Which items will be converted?

How are you going to load items into database?

Conversion of Item/Item Import

Create name or system generated or both?

Numbering/Naming Conventions

How many segments?Build intelligence?

Item Flexfield

Determine by item before you create; lowest unit you

stock, plan and cost.

Units of Measure

CommentsDescription

Additional Setup Considerations Unit of Measure

This has to be determined before the first item can be created and is part of enterprise structure setup. This is also an item attribute and is the only one that can not be changed once the item has been saved to the database. The only option is to delete the item and start again. This can be defaulted from a profile option but if your organization does not use the same primary unit of measure for every item, then a decision should be made as to whether to create multiple templates for parts using different primary units of measure. If the primary unit of measure is allowed to default from a profile option and multiple primary units of measure are used, there is a risk that the wrong one would be applied to the item if there was not a process in place to review the UOM before saving the item to the database. Item flexfield:

• This is a key flexfield and also has to be determined before the first item can be created. • How many segments? • Are you going to try and build intelligence into the part number? • Is there going to be validation of values as they are entered?




• Is there going to be a limit to the number of characters used? • Are you gong to use all capitals or small letters or perhaps both? • Are you going to let the system generate the parts?

Sales Order Flexfield This is another key flexfield in the Inventory application. It is used to capture information from Order Management when the Inventory interface is ran. Examples of the type of information that may be collected from Order Management are the sales order number, order source and order type. The information in this flexfield is populated in the transaction record. Some questions to ask:

• How many segments? • What will they represent?

Numbering/Naming conventions Are you going to let the system generate the item numbers or are you going to define them yourself? If you are going to define them yourself then are you going to have some type of naming convention so that the item number has meaning. Are you going to use capitals, small letter or both? The query capability in the item form is case sensitive so this is something to consider. Conversion of item/item import How are you going to get your existing items into Oracle? Are you going to enter each item manually? Are you going to import the items through the open interface? Who will verify that the item attributes are correct upon import? Will a reconciliation be done between what was in the legacy system vs. what has been brought into Oracle?




Summary

Summary

You should now be able to do the following:• Understand the Enterprise Structure in Oracle

Applications• Define Inventory Organizations and Locations• Define Units of Measure• Describe Item Definition, Item Attributes and

Attribute Controls• Define Items• Create Item Templates• Enter Item Categories and Catalogs



RFQs and Quotations Chapter 4 - Page 1

RFQs and Quotations Chapter 4




RFQs and Quotations

RFQs and Quotations







Requisitions

Purchase Orders

Receiving

Reporting

Invoice/ Payment

Supplier management

RFQs/ Quotations

Catalog Content

Management

Sourcing

Ordering

Analysis




Objectives

Objectives

After completing this module you should be able to do the following:• Create RFQs• Create quotations• Identify key reports• Understand setup options• Understand additional implementation

considerations




Agenda

Agenda

• Understand the RFQs and quotation process• Enter RFQs• Enter quotations• Identify key standard reports• Understand setup options• Understand additional implementation

considerations




RFQs and Quotations

RFQs and Quotations

Requisitionpool

PO

Quotation

Manual

Print/Send RFQ

RFQ

Copy

Automatically create

Supplierlists

Importedrequisitions

RFQs and Quotations

A request for quotation (RFQ) is sent to a supplier to request pricing and other information for an item or items. A quotation is the supplier’s response to that RFQ. Some examples of how you send an RFQ to a supplier include creating an RFQ in the RFQs window and sending it by facsimile, making a phone call, or using iSupplier Portal.




Agenda

Agenda


considerations




Request for Quotation


Enter RFQ

Suppliers fromsupplier list

Supplier 1

Supplier 2

Supplier 3

• Header information– Doc. type, ship-to, bill-to– Quote effective date

• Line information– Quantity– Unit of measure– Target price

• Min/max quantities• Terms and conditions• Hazardous materials• Price breaks or shipping

schedules


A request for quotation (RFQ) is a document you use to solicit supplier quotations for goods or services. You usually send a request for a quote to many suppliers to ensure that you get the best price and terms possible. Supplier Lists Although you may send an RFQ to only one supplier, usually you send a request for quotation to many suppliers to ensure that you get the best price and terms possible. With Purchasing, you create supplier lists so that you can predefine groups of suppliers to whom you want to send RFQs. You can establish supplier lists according to criteria you define, such as an item, manufacturing category, geographic location, or more. You can combine supplier lists to produce many copies of your RFQ automatically. Manually Creating a Request for Quotation You can send the RFQ to as many suppliers as you want and decide how much item information to provide to the suppliers. Each RFQ consists of header, line, and shipment information. In the header, you define the RFQ document type, the ship-to and bill-to locations, and the effective dates for the quotation. The Line region is where you define the goods or services for which you want the supplier to quote. Included in this information are




your requirements, such as unit of measure and, optionally, a target price for negotiation purposes. You may also include minimum and maximum order quantities and classification for hazardous materials. You specify the terms and conditions for the RFQ. You can request as many shipment quotations as you want. AutoCreating Requests for Quotation Purchasing provides automatic creation capabilities for documents. The AutoCreate Document window has features that simplify the creation of requests for quotation. All purchase requisition lines available for AutoCreation go into a single requisition pool. Buyers can retrieve only approved requisition lines from the requisition pool and use the AutoCreate Documents window to create requests for quotation (RFQs). You can choose from Automatic or Manual creation mode to place the requisition line onto a document. You also choose whether you want to create a new RFQ or add the requisition line to an existing RFQ.




RFQ Lifecycle

RFQ Lifecycle

In Process

Active

Printed

Closed

RFQ Lifecycle

In Process The initial status when you create the request for quotation (RFQ). Active Choose this status when the RFQ is complete and you are ready to send it to your suppliers. Only an RFQ with a status of Active are printed. Printed The status assigned to the RFQ when you have printed at least one copy of it. You must change the status to Active if you want to reprint the RFQ! Closed Choose this status to close the RFQ when all suppliers have responded or when you no longer want responses. When you close an RFQ, Purchasing deletes all follow-up notifications associated with it.




Send Notifications

Send Notifications

Your RFQ will expire!

Your RFQ is incomplete!

Send Notifications

You can use the standard request submission window to schedule the Send Notifications for Purchasing Documents program to run periodically. The Send Notifications for Purchasing Documents program runs the Send Notifications workflow. The Send Notifications workflow sends notifications for RFQs with a status of In Process (RFQ Requires Completion notification) or Active and near expiration (RFQ Near Expiration notification).




RFQ Types

RFQ Types

Catalog RFQ Used for high volume items for which your supplier sends you information automatically.

Standard RFQ Used for items you’ll inquire about or need only once, or not often.

Bid RFQ Used for items that incur transportation or other costs.

RFQ Types

There are two classes of RFQs: Catalog and Bid. The Catalog class supports price breaks and the Bid class supports shipments. Catalog RFQs and Standard RFQs both have a class of Catalog and can have price breaks entered for either of them. Bid RFQs have a class of Bid and can have shipments entered.




Supplier List

Supplier List

Suppliers Supplier List

Copy toAdd to

RFQ

Add Manually

Supplier List

Purchasing Responsibility (N) Supply Base > Supplier Lists Supplier Lists You can use a Supplier List to create lists of suppliers to aid you in your procurement activities. Navigate to the Supplier Lists window. From this window, you can create your supplier or use the Find option to locate a list that currently exists. Defining a Supplier List is completely optional. However, if you routinely send RFQs to the same group of suppliers, it makes sense to set up a Supplier List. When you create an RFQ, you can copy one or more of your suppliers defined in your Supplier List to your RFQ. When you copy a supplier list onto your RFQ supplier list, Purchasing copies every unique combination of supplier and supplier site that does not already appear on the current RFQ supplier list.




Guided Demonstration - Create a Supplier List (Required)


(N) Supply Base > Supplier Lists

Create a supplier list with three suppliers.

Create a Supplier List

1. Navigate to the Define Supplier Lists window

2. Name = XXComputer Hardware

3. Description = Computer Hardware

4. Make the list inactive in three months.

5. Add the supplier you created in to your list, as well as the following suppliers (use the list of values from the toolbar to select vendors and sites):

Name Site

XXIBM Corporation NEW YORK

Advanced Network Devices SANTA CLARA

Star Gate Ltd STARGATE-BUY

6. Save




Practice - Create a Supplier List

Overview

In this practice you will enter a supplier and add it to a supplier list.

Assumptions



Tasks



4. Navigate to the Define Supplier Lists window − Name = XXComputer Hardware − Description = Computer Hardware − Make the list inactive in three months.

Name Site



Advantage Corp ADVANTAGE - US




Solution - Create a Supplier List



1. Navigate to the Define Supplier Lists window

• (N) Supply Base > Supplier Lists − Name = XXComputer Hardware − Description = Computer Hardware − Make the list inactive in three months.

2. Add the supplier you created in to your list, as well as the following suppliers (use the list of values from the toolbar to select vendors and sites):

Name Site



Advantage Corp ADVANTAGE - US

3. Save




RFQ Structure

RFQ Structure

• Currency• Terms• Note to Supplier

• Item/Description• Category• UOM

• Qty/Price• Discount %• Effective Dates

• Qty/Price• Need By• Tolerances

• Type• Status• Due/Close Dates

RFQ Lines

RFQ Header

Price Breaks Shipments

Catalog/ Standard

Bid




RFQ Header

RFQ Header

• RFQ Number• Due Date• Close Date• Quote Approval Required• Quote Effectivity• Reply Via• Buyer• Suppliers

RFQ Header

Purchasing Responsibility (N) > RFQs and Quotations > RFQs RFQ Number Enter a unique number for the RFQ. In the Purchasing Options window, you can choose whether RFQ numbers are numeric or alphanumeric and whether Purchasing automatically generates RFQ numbers when you save your changes. Due Date Enter the Due Date when you want your suppliers to reply. Purchasing prints the reply due date on the RFQ. Purchasing notifies the buyer listed on the RFQ if the current date is between the RFQ reply due date and the close date and if the RFQ is Active. Purchasing knows that a supplier replied to an RFQ if you enter a quotation for this supplier referencing the RFQ. Close Date Enter the Close Date for the RFQ. Purchasing prints the close date on the RFQ. Purchasing notifies you if the current date is between the RFQ reply due date and the close date and if the




RFQ is Active. Purchasing warns the buyer listed on the RFQ when you enter a quotation against this RFQ after the close date. Quote Approval Required Select Require Quote Approval to enforce approval of any quotation referencing this RFQ before the quotation can be used for a purchase order. Quote Effectivity Enter the requested beginning and ending Effectivity Dates for the supplier quotation. Reply Via Enter the Reply/Receive Via code for the method you want the supplier to use to send the quotation. For example, you may request they by mail, telephone, or FAX. You can add to this list through the Lookup Codes window. Buyer Purchasing displays your name as the Buyer. You can forward the RFQ to another buyer by choosing the name of this buyer from the list of values. The buyer you enter receives all notifications regarding this RFQ. Suppliers Navigate to the RFQ Suppliers window by selecting the Suppliers button in the RFQs window. For each supplier that you enter, Purchasing displays the Printed and Responded dates as well as the Count of the number of times the RFQ has been printed. The Responded date is the receipt date recorded for the quotation from the supplier. To reprint one or more RFQs, change the status of the RFQ to Active then open the Supplier window. For each supplier you’d like to reprint the RFQ for, select the Include in Next RFQ Printing checkbox. When you run the Printed RFQ report, RFQs will be reprinted for these suppliers.




RFQ Lines

RFQ Lines

• Line Type• Item• Category• Description• Unit of Measure• Target Price• Supplier Item

RFQ Lines

Line Type Enter the line Type for the item. When you enter a line type, Purchasing automatically copies the corresponding purchasing category, unit, and unit price. You can enter predefined items only when you choose a quantity based line type. Purchasing defaults the value you define in the Purchasing Options window. If you need to, you can create your own line types and when you do, you can specify a value basis of amount or quantity. For both amount and quantity based line types, you can specify default values for category, unit of measure, and whether you require receipt. For quantity based line types, you can specify the unit price, but for amount-based line types the unit price defaults to 1. Item Enter the Item for your RFQ line. Purchasing retrieves the item description, purchasing category, and unit of measure. If you do not enter a predefined item, you must provide a purchasing category and item description for the RFQ line. For amount based line types, the cursor does not enter this field.




Category Enter the purchasing category for your RFQ line. If you enter a predefined item, Purchasing supplies the purchasing category. Item Description Enter the item Description for your RFQ line. If you enter an item, Purchasing supplies the item description. You can set up the item definition so that you can override the item description for this particular RFQ. Unit of Measure Enter the UOM for your RFQ line. If you enter an item number, Purchasing supplies the unit of measure. For amount based line types, the cursor does not enter this field. Target Price Enter an optional Target Price for the RFQ line. You may want to provide a target price on the RFQ line for negotiation purposes. For amount-based line types, Purchasing uses a target price of 1. Supplier Item Enter the optional supplier’s number for the item. Note: Use the More tab to enter additional line information such as: UN number, hazard class, minimum and maximum order quantities, project information and note to supplier (prints on the RFQ).




RFQ Price Breaks/Shipments


• Price Breaks (Catalog and Standard RFQs)• Shipments (Bid RFQs)


RFQ Price Breaks Navigate to the RFQ Price Breaks window by selecting the Price Breaks button in the RFQs window. This button is available only when the RFQ header Type is Catalog or Standard. RFQ Shipments Use the RFQ Shipments window to enter and review shipment information for Bid RFQs.




Guided Demonstration - Create a Catalog RFQ (Required)


(N) RFQs and Quotations > RFQs

Create a Catalog RFQ

1. Type = Catalog RFQ

2. Status = Active

3. Due Date = One week from today

Note: The due date will print on the RFQ

4. Description = XXComputer Hardware

5. Reply Via Field = Mail

6. Close Date = Today + 8 days

Note: Purchasing warns you if a new quote is entered into the system that references this RFQ after the close date.

7. Quote Approval Required = Checked

8. Quote Effectivity = Today’s date to one week from today

9. Save

Note: Your name will default into the Buyer field but you can override it. The person specified in the buyer field will receive notifications associated with this RFQ.

Complete the Requested Terms

10. (B) Terms

11. Note to Supplier = Please expedite your response!

12. Save

13. Close the RFQ Terms window.

Add Items

14. (T) Items




15. Enter an item according to the table:

Number Item Category UOM Target Price

1 CM13139 PRODUCTN.DRIVES Each Blank

2 XXSoftware XX.COMPUTER Each Blank

3 XXMonitor XX.COMPUTER Each Blank

Note: The supplier will reply with pricing information.

Add Requested Price Breaks to EACH Line

16. (B) Price Breaks

17. Ask for price breaks at 10, 25, and 50

Num UOM Quantity Price Org Ship-To Discount

1 Each 10 Blank M1 M1-Seattle 10



Note: This must be done for EACH item on your RFQ.

18. Save

19. Exit the RFQ Price Breaks window.

20. Verify that all items have the price break structure entered according to the table above.

Add Suppliers

21. (B) Suppliers

22. (B) Add From List

23. XXComputer Hardware = Checked

24. (B) Apply

25. (B) Ok




26. Note the suppliers from your supplier list were added to your Quote. Also, note the Printed field is blank and the Print Count is 0.

27. Save your work and exit the RFQ Suppliers window.

28. Record your RFQ number.

Print the RFQ

29. Navigate to the request submission window:

30. (N) Reports > Run

31. (B) Ok to choose Single Request

32. Name = Printed RFQ Report(Landscape)

Parameter Value

Report Type All

RFQ Number From Your RFQ

To Your RFQ

33. Click OK

34. (B) Submit



37. (B) Find

38. (B) Refresh Data until your request completes

39. (B) View Output

Note: After the RFQ is printed, the status changes to from Active to Printed. If you want to reprint your RFQ, re-query your RFQ, change the status to Active. Click the Add From List button and select the “include in next printing” check box. Save your changes then re-run the Printed RFQ report.




Practice - Create a Catalog RFQ

Overview

In this practice you create items and add them to a Catalog RFQ. You will use the supplier list you created in the prior practice to copy suppliers on to the RFQ.

Assumptions



Tasks



Create an expense item that will be used in the M1 – Seattle Manufacturing inventory organization. Locate and set the following attributes.

− Open the Master Item window: − Item = XXSoftware − Description = Expensed Item − Primary Unit of Measure = Each − Item Status field = Active − Purchased = Checked − Purchasable = Checked − Buyer = Stock, Ms. Pat − List Price = 450 − Expense Account = 01-510-7530-0000-000 − In the Receipt Date Control area’s Action field, use the list of values to select

Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing = Standard − Enforce Ship-To = Warning





Assign the expense item to the following inventory organizations:

Org Name

M1 Seattle Manufacturing

M2 Boston Manufacturing

M3 Dallas Manufacturing


Create an inventory item that will be used in the M1 – Seattle Manufacturing inventory organization. Locate and set the following attributes.

− Open the Master Item window: − Item = XXMonitor − Description = Inventory Item − Primary Unit of Measure = Each − Item Status = Active − Inventory Item = Checked − Purchased = Checked − Purchasable = Checked − Buyer = Stock, Ms. Pat − List Price = 250 − In the Receipt Date Controls area’s Action field, use the list of values to select




Org Name








1. Open the RFQs window − Type = Catalog RFQ − Status = Active − Due Date = Two weeks from today − Description = XXComputer Hardware − Reply Via Field = Mail − Close Date = Three weeks from today − Quote Approval Required = Checked − Quote Effectivity = Today’s date to one year from today


Use the Terms window to add a note to the supplier. − Note to Supplier = Please expedite your response!

Add Items

Add the following items to your RFQ.



2 XXSoftware MISC.MISC Each Blank

3 XXMonitor MISC.MISC Each Blank


Add the following price breaks to EACH line





Add Suppliers

Add suppliers to your RFQ by copying them from your XXComputer Hardware supplier list.

Print the RFQ




Use the Printed RFQ Report (Landscape) to print your RFQ. Use the following parameters.

Parameter Value

Report Type All


To Your RFQ




Solution - Create a Catalog RFQ



1. (N) Change Organization


Note: Although we chose M1-Seattle Manufacturing, the item will be added to the item master associated with M1-Seattle Manufacturing. After creating the item, we’ll enable it in the inventory organizations (warehouses) that purchase and potentially stock the item. Generally there is only one item master but that is not always the case.

3. (N) Items > Master Items − Item = XXSoftware − Description = Expensed Item − Primary Unit of Measure = Each − Item Status field = Active

4. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Buyer = Stock, Ms. Pat − Use Approved Supplier = Unchecked

Note: The difference between Purchased and Purchasable is that Purchased is the TYPE of item. Purchasable is a flag that determines if the item can currently be used on a purchase order.

Note: If you choose Use Approved Supplier, in order to enter the item on a purchase order and be able to approve the purchase order, there must be an approved supplier list created. In the Vision environment, the Use Approved Supplier is controlled at the inventory organization (warehouse) level.

− List Price = 450 − Expense Account = 01-510-7530-0000-000

5. Save




6. (T) Receiving

7. In the Receipt Date Control area’s Action field, use the list of values to select Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing = Standard − Enforce Ship-To = Warning

8. Save






Assign the item to the following inventory organizations:

Org Name




10. Save





11. (M) File > New − Item = XXMonitor − Description = Inventory Item



14. Save





15. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Buyer = Stock, Ms. Pat − List Price = 250

16. Save




17. (T) Receiving


19. Save







Org Name




21. Save





22. (N) RFQs and Quotations > RFQs − Type = Catalog RFQ − Status = Active − Due Date = Two weeks from today

Note: The due date will print on the RFQ − Description = XXComputer Hardware − Reply Via Field = Mail − Close Date = Three weeks from today

Note: Purchasing warns you if a new quote is entered into the system that references this RFQ after the close date.

− Quote Approval Required = Checked − Quote Effectivity = Today’s date to one year from today

23. Save

Note: Your name will default into the Buyer field but you can override it. The person specified in the buyer field will receive notifications associated with this RFQ.





24. (B) Terms − Note to Supplier = Please expedite your response!

25. Save

26. Close the RFQ Terms window.

Add Items

27. (T) Items

Enter items according to the table:






2 XXSoftware MISC.MISC Each Blank

3 XXMonitor MISC.MISC Each Blank

Note: The supplier will reply with pricing information.


28. (B) Price Breaks

29. Ask for price breaks at 10, 25, and 50





Note: This must be done for EACH item on your RFQ.

30. Save




31. Exit the RFQ Price Breaks window.

32. Verify that all items have the price break structure entered according to the table above.

Add Suppliers

33. (B) Suppliers

34. (B) Add From List − XXComputer Hardware = Checked

35. (B) Apply

36. (B) Ok




Note: the suppliers from your supplier list were added to your RFQ. Also, note the Printed field is blank and the Print Count is 0.

37. Save your work and exit the RFQ Suppliers window.

38. Record your RFQ number.

Print the RFQ

39. Navigate to the request submission window:

40. (N) Reports > Run

41. (B) Ok to choose Single Request − Name = Printed RFQ Report(Landscape)

Parameter Value

Report Type All


To Your RFQ

42. Click OK

43. (B) Submit



46. (B) Find




47. (B) Refresh Data until your request completes

48. (B) View Output

Note: After the RFQ is printed; the status changes to from Active to Printed. If you want to reprint your RFQ, re-query your RFQ, change the status to Active. Click the Add From List button and select the “include in next printing” check box. Save your changes then re-run the Printed RFQ report.




Agenda

Agenda


considerations




Quotations

Quotations

Request for quotations

Supplier 1 Supplier 2 Supplier 3 Supplier 4

Quote repository

Quotations

When a supplier responds to a request for quotation (RFQ), either verbal or written, you need to have a record of the pricing and terms commitments that are made. You have several options to record quotation information:

• You can manually enter the quotation in the system. • You can use the Copy Documents window to create quotations directly from RFQs. • Use a SQL*Loader script to load a flat file into the Purchasing Documents Open

Interface. • Use the e-Commerce Gateway to load 832/PRICAT.

A quotation is a statement of the price, terms, and conditions of sales a supplier offers you for an item or service. A quotation usually includes a detailed description of goods or services the supplier offers. Suppliers consider quotations as an offer to sell when given in response to an inquiry such as a request for quotation. A quotation may be verbal or written. You often get verbal quotations for minor purchases by telephone. You usually send a request for quotation if you want a written quotation from the supplier. Written quotations often have an effective date and an expiration date.




Manually Entering a Quotation If you copied the quotation from an existing RFQ, Purchasing displays the corresponding RFQ number, which you can override. You can also manually provide an RFQ number. The supplier and supplier site you provide is verified and you can choose from a corresponding list of RFQs. If you want to enter a quotation as a response to an RFQ for a supplier that you did not provide on the RFQ supplier list, you need to modify the RFQ supplier list first. If you enter the number of an RFQ for which you already entered a response for the supplier and supplier site, a warning message is displayed, but your entry is permitted.




Quotation Lifecycle

Quotation Lifecycle

In Process Active

Closed

Quotation Lifecycle

In Process The initial status when you create the quotation. Active Choose this status when the quotation is complete and you are ready to approve it. Closed When you enter a quotation, you provide an expiration date for it. You will be sent a notification when the quotation expiration date is approaching. You can manually close the quotation to acknowledge the notice. If you do not acknowledge the notification by closing the quotation, the status of your quotation is still Active. Notifications will be sent to the buyer listed on the quotation header.




Send Notifications

Send Notifications

Your quotation will expire!

Your quotation is incomplete!

Send Notifications

You can use the Standard Request Submission window to schedule the Send Notifications for Purchasing Documents program to run periodically. The Send Notifications for Purchasing Documents program runs the Send Notifications workflow. The Send Notifications workflow sends notifications for quotations with a status of In Process (Quotation Requires Completion notification) or for quotations that are near expiration (Quotation Near Expiration notification).




Quotation Types

Quotation Types

Catalog Quote

Used for high volume items for which your supplier sends you information automatically.

Standard Quote

Used for items you’ll inquire about or need only once, or not often.

Bid Quote Used for items that incur transportation or other costs.

Quotation Types

There are two classes of quotations: Catalog and Bid. The Catalog class supports price breaks and the Bid class supports shipments. Catalog quotations and standard quotations both have a class of Catalog and can have price breaks entered for either of them. Bid quotations have a class of Bid and can have shipments entered.




Quotation Structure

Quotation Structure

Quote Lines

Quote Header• Currency• Terms• Warning Delay

• Item/Description• Category• UOM

Price Breaks Shipments• Qty/Price• Discount %• Effective Dates

• Qty/Price• Need By• Tolerances

• Type• Status• Supplier/Site• Response Date

Catalog/ Standard

Bid




Quotation Header

Quotation Header

• Quotation Number• RFQ Number• Supplier/Supplier Site• Contact• Response Date• Effectivity Date• Buyer

Quotation Header

Purchasing Responsibility (N) > RFQs and Quotations > Quotations Quotation Number Enter a unique number for the quotation. In the Purchasing Options window, you can choose whether quotation numbers are numeric or alphanumeric and whether Purchasing automatically generates quotation numbers when you save your changes. RFQ Number If you copied this quotation from an existing RFQ, Purchasing displays the corresponding RFQ number, which you can override. You can also manually provide an RFQ number. Purchasing verifies the supplier and supplier site you provide and lets you choose from a corresponding list of RFQs. If you want to enter a quotation as a response to an RFQ for a supplier you did not provide on the RFQ supplier list, you need to modify the RFQ supplier list first. If you change the supplier or supplier site information on this quotation after you enter an RFQ number, Purchasing removes the RFQ number, and you must re-enter it. If you enter the number of an RFQ for which you already entered a response for this supplier and supplier site, Purchasing displays a warning message but permits you to enter it.




Supplier/Supplier Site Enter the Supplier for this quotation. When you enter a supplier name, Purchasing uses the default terms, conditions, and currency information for this supplier in the Quotation Terms and Currency windows. The lists of values displays the supplier name, number, Tax ID number, and VAT number.

Optionally enter the supplier Site for this quotation. You do not need to provide a supplier site for a quotation. When you enter a supplier site, Purchasing uses the default terms, conditions, and currency information for this supplier site in the Quotation Terms and Currency windows. Contact Enter a supplier Contact for this quotation. Response Date The Response Date is the date you actually received the quotation. Purchasing defaults today’s date as the response date, but you can change this date. Effectivity Date Enter the beginning and ending Effective Dates for the quotation. Buyer Purchasing displays your name as the Buyer. You can forward the quotation to another buyer by choosing the name of this buyer from the list of values. The buyer you enter receives all notifications regarding this quotation. Note: Additional key fields include: Ship-To and Bill-To Enter the Ship-To and Bill-To locations for the items on the quotation. Approval Required Select Approval Required to indicate that approval is required to purchase goods based on this quotation. Warning Delay (Terms and Conditions window) Enter the Warning Delay (in days) that you want Purchasing to use when sending you an on-line notification before the quotation expiration date. Note: If the Quotation is linked to an RFQ in the system, you can query that RFQ and review the date responded.




Quotation Lines

Quotation Lines

• Line Type• Item• Category• Description• Unit of Measure• Unit Price• Supplier Item

Quotation Lines

Line Type Enter the line Type for the item. When you enter a line type, Purchasing automatically copies the corresponding purchasing category, unit, and unit price. You can enter predefined items only when you choose a quantity based line type. Purchasing defaults the value you define in the Purchasing Options window. If you need to, you can create your own line types and when you do, you can specify a value basis of amount or quantity. For both amount and quantity based line types, you can specify default values for category, unit of measure, and whether you require receipt. For quantity based line types, you can specify the unit price, but for amount-based line types the unit price defaults to 1. Item Enter the Item for your quotation line. Purchasing retrieves the item description, purchasing category, and unit of measure. If you do not enter a predefined item, you must provide a purchasing category and item description for the quotation line. For amount-based line types, the cursor does not enter this field.




Category Enter the purchasing Category for your quotation line. If you enter a predefined item, Purchasing supplies the purchasing category. Description Enter the item Description for your quotation line. If you enter an item, the item description is supplied. You can set up the item definition so that you can override the item description for this particular quotation. Unit of Measure Enter the UOM for your quotation line. If you enter an item number, Purchasing supplies the unit of measure. For amount based line types, the cursor does not enter this field. Unit Price Enter the unit Price for the quotation line. For amount based line types, Purchasing uses a target price of 1. Supplier Item Enter the supplier’s number for the item. Note: Use the More tab to enter additional line information such as: UN number, hazard class, minimum and maximum order quantities, project information and notes from supplier.




Quotation Price Breaks/Shipments


• Quotation Price Breaks (Catalog and Standard)• Quotation Shipments (Bid)


Quotation Price Breaks Navigate to the Quotation Price Breaks window by selecting the Price Breaks button in the Quotations window. This button is available only when the Quotation header Type is Standard or Catalog. Quotation Shipments Use the Quotation Shipments window to enter and review shipment information for Bid Quotations.




Quotation Approvals

Quotation Approvals

Supplier 1 Supplier 2 Supplier 3 Supplier 4

ApproveSupplier 1

Item 1

ApproveSupplier 1

Item 3

ApproveSupplier 2

Entire quote

ApproveSupplier 3

Item 2

Quote repository

Quotation Approvals

Navigate to the Approve Entire Quotation window by selecting the Approve button in the Quotations window. In this case, your approval action applies to all price break or shipment lines on the quotation. You can also navigate to this window by selecting the Approve button in the Quotation Shipments, and Quotation Price Breaks windows. The difference is that if you are in the Quotation Shipments or Quotation Price Breaks windows, you are only approving part of the quotation. Keep in mind that it is not necessary to approve a quotation to use it as a source document unless the Quote Approval Required option is selected on the quotation, or on any RFQs the quotation references.




Guided Demonstration - Create a Catalog Quote from an RFQ (Required)


(N) RFQs and Quotations > RFQs

Record a quote based on an RFQ and approve it for use as a source document.

Automatically Create a Quotation from an RFQ

1. (M) View > Find

2. In the Find field, enter the number of your RFQ from the prior exercise.

3. (B) Find

4. Click on your RFQ

5. Click OK

6. Open the Copy Document window:

7. (M) Tools > Copy Document.

8. Use the list of values to choose the following parameters:

Parameter Value

Action Entire RFQ

Number N/A for automatic numbering

Type Catalog Quotation

Supplier XXIBM Corporation

Site NEW YORK

Contact Choose from your list of values

Note: Enter a quotation number if you are using manual quotation numbering. If your setup is for automatic quotation numbers, Oracle Purchasing will assign a number when you save your work.

Note: The PO: Display AutoCreated Quotation profile option determines if the quotations window is displayed after the RFQ is copied to the quotation.




9. (B) OK to copy the RFQ

10. Record your Quotation number

11. (B) OK to close the note window

12. Save

13. Status = Active

14. Save

Record Pricing

15. Record pricing according to the following table:

Item Price

CM13139 100

XXSoftware 450

XXMonitor 250

16. Update price breaks for all three quotation lines according to the following table:


1 Each 10 Calculates M1 M1-Seattle 10



17. Exit the Price Breaks window

Approve the Entire Quotation

18. (B) Approve

19. In the Approve Entire Quotation window enter the following parameters:

Parameter Value

Type All Orders




Reason Best Design

Approver The name of your employee

Effective Today’s date to one week from today

Comments Design approved by Engineering

20. (B) OK

21. (B) OK to close the note window.

22. Requery the RFQ in the RFQs and Quotations window, choose the Suppliers button and note the response date is completed!

Note: the RFQ number used to generate this quote is saved with the quotation. Multiple quotations may be generated from the same RFQ.

23. Close the Quotation Price Breaks window and the RFQ to Quotation window.

24. Record your quotation number.

25. Requery your RFQ and note the Responded and Quotation fields are populated.




Guided Demonstration - Schedule the Send Notifications for Purchasing Documents Process (Required)


(N) Reports > Run

Record a quote based on an RFQ and approve it for use as a source document.

1. (B) OK to submit a single request

2. Name = Send Notifications for Purchasing Documents

3. (B) Schedule

4. Run the job periodically

5. Re-run every 1 day

6. (B) OK




Practice - Create a Catalog Quote from an RFQ

Overview

In this practice you will record a catalog quote from your supplier. Copy details in the RFQ directly on to the catalog quote using the Copy Document functionality.

Assumptions



Tasks



1. Open the RFQs window and find your RFQ

2. (M) Tools > Copy Document.

Use the list of values to choose the following parameters:

Parameter Value

Action Entire RFQ



Supplier XXIBM Corporation

Site NEW YORK


− Status = Active

Record Pricing

Record pricing according to the following table:




Item Price

CM13139 100

XXSoftware 450

XXMonitor 250

Update price breaks for all three quotation lines according to the following table:






In the Approve Entire Quotation window enter the following parameters:

Parameter Value

Type All Orders

Reason Best Design

Approver Stock, Ms. Pat

Effective Today’s date to one year from today





Solution - Create a Catalog Quote from an RFQ



1. (N) RFQs and Quotations > RFQs

2. (M) View > Find

3. In the Find field, enter the number of your RFQ from the prior exercise.

4. (B) Find

5. Click on your RFQ

6. Click OK

7. Open the Copy Document window:

• (M) Tools > Copy Document.

Use the list of values to choose the following parameters:

Parameter Value

Action Entire RFQ



Supplier Advanced Network Devices

Site SANTA CLARA


Note: Enter a quotation number if you are using manual quotation numbering. If your setup is for automatic quotation numbers, Oracle Purchasing will assign a number when you save your work.

Note: The PO: Display AutoCreated Quotation profile option determines if the quotations window is displayed after the RFQ is copied to the quotation.




8. (B) OK to copy the RFQ.

9. Record your Quotation number

10. (B) OK to close the note window

11. Save − Status = Active

12. Save




Record Pricing

Record pricing according to the following table:

Item Price

CM13139 100

XXSoftware 450

XXMonitor 250




Update price breaks for all three quotation lines according to the following table:







14. (B) Approve

15. In the Approve Entire Quotation window enter the following parameters:

Parameter Value

Type All Orders

Reason Best Design







16. (B) OK


18. Requery the RFQ in the RFQs and Quotations window, choose the Suppliers button and note the response date is completed!

Note: the RFQ number used to generate this quote is saved with the quotation. Multiple quotations may be generated from the same RFQ.

19. Close the Quotation Price Breaks window and the RFQ to Quotation window.


21. Requery your RFQ and note the Responded and Quotation fields are populated.




Agenda

Agenda


considerations




Reports

Reports

Printed RFQ Report

RFQ Action Required Report

Quotation Action Required Report

Reports

Printed RFQ Report The Printed RFQ Report (Landscape) prints in landscape format RFQs with a Status of Active. Purchasing allows you specify the RFQs you want to review or print and provides a default landscape format for preprinted landscape forms. RFQ Action Required Report The RFQ Action Required report lists RFQs that require follow-up action. This report provides you with all of the information you need to take immediate action on RFQs approaching the reply due date. Purchasing allows you specify which RFQs you want to review. This report prints your RFQs for which you have not received complete responses. For each RFQ, Purchasing prints the RFQ description and the reply due date. Quotation Action Required Report The Quotation Action Required report lists quotations that require follow-up action. This report provides you with all of the information you need to take immediate action on the quotation. If you do not specify a date range, all quotations are displayed. This report prints quotations that are about to expire.




Summary

Summary

You should now be able be able to do the following:• Create RFQs• Create quotations• Identify key reports• Understand setup options• Understand additional implementation

considerations



Approved Supplier Lists and Sourcing Rules Chapter 5 - Page 1

Approved Supplier Lists and Sourcing Rules Chapter 5




Approved Supplier Lists and Sourcing Rules

Approved Supplier Lists and Sourcing Rules






Purchase Orders

Receiving

Reporting

Invoice/ Payment


Supplier management

RFQs/ Quotations

Catalog Content

Management

Sourcing

Ordering

Analysis




Objectives

Objectives

After completing this module you should be able to do the following:• Define supplier statuses• Set up and use an approved supplier list• Set up and use sourcing rules• Understand how sourcing information defaults to

requisitions and purchase orders• Understand additional implementation

considerations




Agenda

Agenda

• Create the approved supplier list• Create sourcing rules• Understand setup options• Understand additional implementation

considerations




Approved Supplier Lists


Ship-toorganization or

global organizations

Commodity Approved Supplier List

Items

Supplier site


All procurement organizations maintain lists that associate the items and services they buy with the companies who supply them, either formally or informally. Data stored in a controlled global repository containing relevant details about each ship-from, ship-to, and item relationships is known as an Approved Supplier List (ASL). This repository includes information about all ASL suppliers with their business statuses:

• Approved - The supplier has demonstrated the ability to satisfy rigorous quality, cost, and delivery requirements over a sustained period.

• Debarred - The supplier is temporarily or permanently disallowed on purchase orders due to performance failure, ethics violations, and so on.

• New - This status may be used based on your company policy to indicate that the supplier has never placed a purchase order with the procurement organization or that your company considers this a relatively new supplier.




Supplier Statuses

Supplier Statuses

Approved

New

Debarred

Allow: PO ApprovalAllow: SourcingAllow: Schedule Confirmation Allow: Manufacturer Link

x

Allow: PO ApprovalAllow: SourcingPrevent: Schedule Confirmation Allow: Manufacturer Link

Prevent: PO ApprovalPrevent: SourcingPrevent: Schedule Confirmation Prevent: Manufacturer Link

Supplier Statuses

Purchasing Responsibility (N) Supply Base > Supplier Status

Each item/supplier combination must be assigned a status. These statuses are defined by your organization based on your business needs. When you define a status, you define a set of business rules that control whether an action is allowed or prevented. For each status and action combination, indicate whether the action is allowed or prevented. The four predefined actions for business rules you can associate with each status are:

• PO Approval - Approval of a purchase order to a supplier • Sourcing - When sourcing planned orders, Planning should assign suppliers with this

business rule set to Allowed • Schedule Confirmation - Confirmation of a schedule for a supplier • Manufacturer Link - Associates a manufacturer with a distributor in the ASL




The four actions come seeded with Oracle Applications and you cannot add new ones. Once you define a set of statuses, you can then associate a status with a supplier-commodity/item combination in the ASL. You can disable an approved supplier list entry or debar a supplier by choosing Debar from the list of values on the Status field. Debarring a supplier and disabling an approved supplier list entry are very different.

• Disabled - Disable the line on the ASL. • Debarred - The supplier is on the ASL, but may be having quality problems so you want

to prevent future business by choosing the Debar option from the list of values on the Status field. When you want to resume purchases with the supplier, you can change the status back to Approved.

Disable example: If you have both a global and local ASL defined for a given item and you no longer want to use the local ASL you can use the disable feature to disable the local ASL, so the system ignores the entry and uses the global ASL instead. Debar example: If you have both local and global ASLs defined for a given item and you change the status of the local ASL to Debarred, neither the global ASL nor the local ASL can be used. Note: Disabling or debarring an approved supplier list entry has no impact unless the Use Approved Supplier option is selected for the item.




Guided Demonstration - Create an Approved Supplier List Status (Required)


(N) Supply Base > Supplier Status

Create a Supplier Status

1. (M) File > New

2. Status = XXApproved

3. Description = Approved for Business

4. Approved Supplier List Default = Unchecked

Assign Business Rules

5. Create business rules for the status according to the following table:

Control Rule Rule Description

Allow PO Approval Purchase Order Approval

Allow Sourcing Sourcing

6. Save




Practice - Create an Approved Supplier List Status

Overview

In this practice you will create an approved supplier list status.

Assumptions



Tasks



1. Navigate to the Approved Supplier List Status window

• Status = XXApproved

• Description = Approved for Business


Assign business rules to the status according to the following table: Control Rule Rule Description






Solution - Create an Approved Supplier List


1. Enter sign on information − User Name = operations − Password = welcome

2. Select a responsibility

• Responsibility = Purchasing, Vision Operations


3. Navigate to the Approved Supplier List Status window

• (N) Supply Base > Supplier Status

4. (M) File > New − Status = XXApproved − Description = Approved for Business − Approved Supplier List Default = Unchecked


5. Create business rules for the status according to the following table:

Control Rule Rule Description



6. Save




ASL Common Header Attributes


Item CM13139

Supplier

IBM

Stargate Ltd.

Status Review-By

Approved

Debarred

02-JUN-03

15-MAR-03

COMPUTER-PC


Purchasing Responsibility (N) Supply Base > Approved supplier List ASL Header Attributes - Item For each item/supplier site relationship, you can define a set of attributes that control the procurement process. The set of attributes can be global (available to all inventory organizations) or local to one inventory organization. Local attributes override global attributes. Item/Commodity

• Item - Assigns a supplier to a particular item • Commodity - Assigns a supplier to a group of items belonging to a category (or

commodity). Business Type

• Direct (Supplier) - Company sells their products directly to you. • Manufacturer - Company manufactures and sells through distributors.




• Distributor - Company sells products made by manufacturers. You must associate the Distributor with a Manufacturer, meaning you must define a Manufacturer before you define its Distributor.

Status Use one of the default Statuses provided, or choose a status of your own if you defined other statuses in the Approved Supplier List Statuses window. Review By You can use this date to determine when a proactive business review will be performed for the supplier. Global

• Yes - This ASL entry is valid for all inventory organizations in your operating unit. • No - This ASL entry is local, that is, valid only for the organization you chose in the

Organizations window when you first navigated to the Approved Supplier List window. When multiple ASL entries exist, the following hierarchy will be used to determine which ASL will be used:

• Item/Supplier/Global • Item/Supplier/Supplier Site/Global • Item/Supplier/Local • Item/Supplier/Supplier Site/Local

Item/Supplier/Global ASLs are the weakest and Item/Supplier/Supplier Site/Local ASLs are the strongest. Note: When Use Approved Supplier is checked for an item in the Master Items or Organization Items windows (depending on whether control of the attribute is at the Master Item level or Organization Item level), you cannot approve a source document until the supplier is in the Approved Supplier List.




ASL Header Attributes - Item


Item CM13139

Supplier

IBM

Stargate Ltd.

Status Item #

Approved

Debarred

850HDRV

HD850MB

Use ApprovedSupplier?


Purchasing Responsibility (N) Supply Base > Approved supplier List ASL Header Attributes - Item For each item/supplier site relationship, you can define a set of attributes that control the procurement process. The set of attributes can be global (available to all inventory organizations) or local to one inventory organization. Local attributes override global attributes. Supplier Item For Suppliers and Distributors, this supplier item number defaults to your purchase order and requisition lines, and is used to validate the source documents. Note: When Use Approved Supplier is checked for an item in the Master Items or Organization Items windows (depending on whether control of the attribute is at the Master Item level or Organization Item level), you cannot approve a source document until the supplier is on the Approved Supplier List.




ASL Header Attributes - Commodity


Supplier

IBM

Stargate Ltd.

Status Item #

Approved

Debarred

-

-

COMPUTER-PC


The status you define on a commodity-level Approved Supplier List entry (an entry for a category of items) controls sourcing at both the item and commodity levels. For example, if you debar a supplier for a specific commodity, the supplier is prevented from supplying all items within that commodity. You do not need to debar a supplier for each item. Note: If you approve a supplier for a commodity and have an item-specific ASL entry, the item-specific ASL entry will take precedence over the commodity level ASL entry.

Consider the following scenarios:

Scenario 1: If A, B and C are approved suppliers at the commodity level and A and D are approved suppliers at the item level, purchase orders can be written and approved for suppliers A and D and not for suppliers B and C. Scenario 2:




If A, B and C are approved suppliers at the commodity level and there is no ASL at the item level, then A, B and C will be considered approved suppliers for any item assigned to the commodity. Scenario 3: If A is a debarred supplier at the commodity level, even if it is an approved supplier at the item level for an item that is in the commodity, A will be considered debarred for the item. Purchase orders cannot be approved either for the item or any item in the commodity.




Supplier-Commodity/Item Attributes


• Purchasing UOM• Release Method• Price Update Tolerance• Country of Origin


Create Local The Create Local button creates a copy of an existing global Approved Supplier List entry and makes it local to your inventory organization. For each ASL entry, you can optionally include the following information:

• Purchasing UOM - unit of measure (UOM) for the purchasing transaction involving the item from that particular supplier or supplier site.

• Release Method - the method for creating releases for a supplier (using workflow, the AutoCreate window or the Create Releases program):

- Automatic Release/Review - Automatically generate releases using the Create Releases program, but require a separate step for approval.

- Automatic Release - Automatically generate approved releases using the Create Releases program.

- Release Using Autocreate - Use the AutoCreate window or workflow to create the release.




• Price Update Tolerance - used when importing blanket purchase agreement lines and catalog quotes through the Purchasing Documents Open Interface. If the supplier sends lines that increase the price associated with the source document more than the percent specified, the buyer must accept or reject the increases using the Exceeded Price Tolerances window. The Price Update Tolerance can be specified in three locations:

- Profile option - PO: Price Tolerance (%) for Catalog Updates - On the approved supplier list - On the purchase document

• Country of Origin - the Country of Origin is the country in which an item is manufactured.






• Source Document• Supplier Scheduling• Planning Constraints


850HDRV

Item CM13139


Source Document Tab Select the Source Documents tab to associate specific quotations or blanket purchase agreements with the supplier/item combination. Supplier Scheduling Tab Select the Supplier Scheduling tab to associate supplier scheduling information with the supplier/item combination. You can choose this option if you specified an item and a supplier site. Planning Constraints Tab Select the Planning Constraints tab to associate capacity constraints for the supplier/item combination. You can choose this option if you specified an item and a supplier site and the ASL is a global ASL entry. Suppliers can update their own per day capacity through iSupplier Portal.




Supplier-Commodity/Item Attributes Source Document

Supplier-Commodity/Item AttributesSource Document

Item CM13139


850HDRV

Quotation/ BPA

• Blanket Purchase• Agreement/Catalog Quote

Supplier-Commodity/Item Attributes - Source Document

Source Document You can associate specific quotations or blanket purchase agreements with the supplier/item combination. Document Type (Blanket or Quotation) A requisition with a quotation as a source document becomes a standard purchase order. A requisition with a blanket purchase agreement as a source document becomes a release. Standard purchase orders get source document information only from quotations. If you are creating a blanket purchase agreement as a source document for Supplier Scheduling, make sure the Supply Agreement option is selected for the blanket purchase agreement in the Terms and Conditions window. Document Number If Purchasing does not let you enter a particular document number, it may be because the document is frozen, canceled, or not approved, or the agreement line is canceled. Quotations must have a status of Active to be used as a source document.




Note: Setting the profile option PO: Automatic Document Sourcing to Yes enables Purchasing to default source documents automatically rather than specifying source documents in the Source Documents tabbed region. If you use Automatic Document Sourcing, the most recent blanket purchase agreements and quotes will be used as reference documents on purchase documents.




Supplier-Commodity/Item Attributes Supplier Scheduling

Supplier-Commodity/Item AttributesSupplier Scheduling

Item CM13139


850HDRV

PlanningSchedule

• Planning Schedules• Shipping Schedules

Supplier-Commodity/Item Attributes - Supplier Scheduling

Supplier Scheduling Associate supplier scheduling information with the supplier/item combination. You can choose this option if you specified an item and a supplier site. Supply Chain Planning can use the information you enter for planned orders. Enable Planning Schedules/Shipping Schedules Optionally check Enable Planning Schedules and/or Enable Shipping Schedules if you want to build Planning and/or Shipping Schedules. Shipping schedules are firm commitments to buy. Planning schedules are forecasts that could potentially become firm shipping schedules. If you check Enable Planning Schedules and/or Enable Shipping Schedules, you must choose an assigned scheduler. Enable AutoSchedule Check Enable AutoSchedule if you want your schedule automatically built. You can choose to enable one or more of the following options:

• Plan Bucket Pattern • Ship Bucket Pattern




• Plan Schedule Type • Ship Schedule Type

Bucket patterns are assigned to the item in the approved supplier list. When you build a schedule, using AutoSchedule, items matching the selection criteria are grouped by bucket pattern and included on the same schedule. If a supplier is associated with items that contain different bucket patterns for the selected schedule, multiple schedules are automatically built, one for each bucket pattern. Bucket patterns are comprised of up to 56 buckets of days, weeks, months or quarters. Enable Authorizations Check if you want to optionally choose up to four Resource Authorizations with their associated time fences. Resource Authorizations address the supplier's need to have long lead time components or to invest in material processing without incurring economic hardship, if requirements are reduced. Authorizations are defined using time fences and are calculated, based on scheduled quantities within the designated horizon. Examples of Resource Authorizations include: material, labor, finished goods, etc. Note: In order to use this functionality, Supplier Scheduling must be installed.




Supplier-Commodity/Item Attributes Planning Constraints

Supplier-Commodity/Item AttributesPlanning Constraints

Item CM13139


850HDRV• Order Modifiers• Capacity• Tolerance Fences

Supplier-Commodity/Item Attributes - Planning Constraints

Planning Constraints You can specify planning constraints for a supplier/item combination. You can choose this option if you specified an item and a supplier site and if the ASL entry is global. Supply Chain Planning uses the information you enter here for planned orders. Processing Lead Time Enter the number of lead days it takes to receive this item after ordering it. Delivery Calendar Choose a Delivery Calendar pattern to define the dates upon which the supplier delivers to this organization. Create a workday calendar first, and then use the list of values to select the appropriate workday calendar to be used as a delivery calendar. Order Modifiers Choose Order Modifier options to indicate ordering constraints.

• Minimum Order Quantity • Fixed Lot Multiple

Capacity




Create one or more entries in the Capacity area to indicate what the supplier capacity is during a certain period or periods. Tolerance Fences Create one or more entries in the Tolerance Fences area to indicate how the capacity fluctuates depending on how many days in advance you order. Capacity and Tolerance Fences work closely together. If suppliers have sufficient advance notice, many times they can plan ahead and increase their per-day capacity. For example, assume your supplier’s per-day capacity is 100 units but if they have 14 days advance notice, they can increase their per day capacity to 110 units. You could define Capacity per Day as 100 units and in the Tolerance Fences region specify Days in Advance of 14 and Tolerance % of 10. Note: You must have Advanced Supply Chain Planning installed in order to use planning constraints.




Guided Demonstration - Require an Approved Supplier for an Item (Required)


(N) Items > Organization Items

The Use Approved Supplier flag is controlled at the inventory organization level in the Vision environment. Once the attribute is selected, in order to write a purchase order for the item, it must be on an approved supplier list. If you attempt to write a purchase order for an item that requires an approved supplier, you will not be able to approve the purchase order.

Set the Use Approved Supplier Flag for an Item

1. Organization = M1 – Seattle Manufacturing

2. Item = XXMonitor

3. (B) Find

4. (T) Purchasing

5. Use Approved Supplier = Checked

6. Save

Attempt to Enter a Purchase Order for the Item

7. Navigate to the Purchase Orders window

8. (N) Purchase Orders > Purchase Orders

9. Supplier = XXIBM Corporation

10. Site = NEW YORK

11. (T) Items

12. Item = XXMonitor

13. Quantity = 10

14. Price = 250

15. Need-By = Today’s date

16. Save




17. (B) Approve

18. Verify that this item requires an approved supplier list




Guided Demonstration - Create an Approved Supplier List (Required)


(N) Supply Base > Approved Supplier List (M1 Seattle Manufacturing)

Enter an Approved Supplier List for the item you created that references your catalog quote.

Add an Approved Supplier for your Item

1. Type = Item

2. Item = XXMonitor

3. (T) Key Attributes

4. Business = Direct

5. Name = XXIBM Corporation

6. Site = NEW YORK

7. Status = XXApproved

8. Supplier Item = XXSVGA17

9. Optionally specify a review-by date.

Note: You can use this date to determine when a proactive business review should be performed for the supplier. There are no standard reports, alerts or notifications associated with this field. To have advance notification, create an alert.

Note: You can search suppliers requiring a review using the Approved Supplier List Summary window.

Make the Approved Supplier List a Global Approved Supplier List

10. (T) Record Details

11. Global = Yes from the pop-up list to indicate this item and supplier site combination should be available to all organizations. A local ASL entry will override a global ASL entry.

12. Save

Define the Attributes of the Approved Supplier List Entry

13. (B) Attributes




14. Release Method = Release Using AutoCreate

15. (T) Source Documents

16. Type = Quotation

17. Number = Your quotation number

Note: If your quotation does not appear on the list of values check to ensure the status is active and the quote is approved! Recall that we selected the Quote Approval Required option on the RFQ that is associated with this quotation.

18. In the Line field enter the quotation line number of your inventory item.

19. Save

20. Close the Supplier-Item Attributes and Approved Supplier List windows to return to the Navigator.

Note: Blanket purchase orders and quotations are not required to create an Approved Supplier List. In addition, it is not even necessary to associate a blanket purchase agreement or quotation in the Source Details window if you set the PO: Automatic Document Sourcing profile option to “Yes”.




Practice - Require an Approved Supplier for an Item

Overview

In this practice you will set the Use Approved Supplier attribute on an item.

Assumptions



Tasks



Create an inventory item that will be used in the M1 – Seattle Manufacturing inventory organization. Locate and set the following attributes.

− Open the Master Item window − Item = XXMonitor − Description = Inventory Item − Primary Unit of Measure = Each − Item Status = Active − Inventory Item = Checked − Purchased = Checked − Purchasable = Checked − Buyer = Stock, Ms. Pat − List Price = 250 − In the Receipt Date Controls area’s Action field, use the list of values to select







Org Name





1. Navigate to the Organization Items window

• Organization = M1 – Seattle Manufacturing

• Use Approved Supplier = Checked

Attempt to Enter a Purchase Order for the Item − Supplier = Advanced Network Devices − Site = SANTA CLARA − Item = XXMonitor − Quantity = 10 − Price = 250 − Need-By = Today’s date − Verify that this item requires an approved supplier list




Solution - Require an Approved Supplier for an Item


1. Enter sign on information. − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations


2. Open the Master Items window:

• (N) Items > Master Items − Item = XXMonitor − Description = Inventory Item

• (T) Main − Primary Unit of Measure = Each − Item Status = Active

• (T) Inventory − Inventory Item = Checked

• Save





• (T) Purchasing − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Buyer = Stock, Ms. Pat − List Price = 250

• Save

• (T) Receiving − In the Receipt Date Controls area’s Action field, use the list of values to select


• Save





3. Navigate to the Organization Assignment window.

• (M) Tools > Organization Assignment

Assign the item to the following inventory organizations: Org Name




4. Save






6. Navigate to the Organization Items window

• (N) Items > Organization Items − Organization = M1 – Seattle Manufacturing − Item = XXMonitor

• (B) Find

• (T) Purchasing − Use Approved Supplier = Checked

7. Save

Attempt to Enter a Purchase Order for the Item


• (N) Purchase Orders > Purchase Orders − Supplier = Advanced Network Devices − Site = SANTA CLARA

• (T) Items − Item = XXMonitor




− Quantity = 10 − Price = 250 − Need-By = Today’s date

• (B) Approve

9. Verify that this item requires an approved supplier list




Practice - Create an Approved Supplier List

Overview

In this practice you will enter a supplier and add it to a supplier list.

Assumptions



Tasks


Create a Catalog Quote

Create a catalog quote for your XXMonitor item that is effective from today’s date to a year from today. Quote approval will be required to reference this quotation on a purchase document. Approve the quotation for all orders.

1. Open the RFQs window: − Supplier = Advanced Network Devices − Site = SANTA CLARA − Status = Active − Effectivity = Today to a year from today − Quote Approval Required = Checked









Add an approved supplier list for your XXMonitor item. The owning organization will be the M1-Seattle Manufacturing but the approved supplier list will be global.

2. Open the Approved Supplier List window: − Business = Direct − Name = Advanced Network Devices − Site = SANTA CLARA − Status = Approved − Supplier Item = XXSVGA17


3. (T) Record Details − Global = Yes


You will use the PO Create Documents workflow or the AutoCreate window to create standard purchase orders. Make sure that the release method is set appropriately.

− Release Method = Release Using AutoCreate − Type = Quotation − Number = Your quotation number

4. In the Line field enter the line number of your inventory item.




Solution - Create an Approved Supplier List


Create a Catalog Quote

1. (N) RFQs and Quotations > Quotations − Type = Catalog Quotation − Supplier = Advanced Network Devices − Site = SANTA CLARA − Status = Active − Effectivity = Today to a year from today − Quote Approval Required = Checked

2. (T) Items

Enter item information according to the following table: Num Item Category Description UOM

1 XXMonitor MISC.MISC Inventory Item Each




Specify price breaks according to the following table Num UOM Quantity Price Org Ship-To Discount





4. (B) Approve

In the Approve Entire Quotation window enter the following parameters: Parameter Value

Type All Orders

Reason Best Design




5. (B) OK




8. Open the Approved Supplier List window:

• (N) Supply Base > Approved Supplier List (M1 Seattle Manufacturing) − Type = Item − Item = XXMonitor

9. (T) Key Attributes − Business = Direct − Name = Advanced Network Devices − Site = SANTA CLARA − Status = Approved − Supplier Item = XXSVGA17

10. Optionally specify a review-by date.




Note: You can use this date to determine when a proactive business review should be performed for the supplier. There are no standard reports, alerts or notifications associated with this field. To have advance notification, create an alert.

Note: You can search suppliers requiring a review using the Approved Supplier List Summary window.


11. (T) Record Details − Global = Yes from the pop-up list to indicate this item and supplier site combination

should be available to all organizations. A local ASL entry will override a global ASL entry.

12. Save





13. (B) Attributes − Release Method = Release Using AutoCreate

14. (T) Source Documents − Type = Quotation − Number = Your quotation number

Note: If your quotation does not appear on the list of values check to ensure the status is active and the quote is approved! Recall that we selected the Quote Approval Required option on the RFQ that is associated with this quotation.

15. In the Line field enter the line number of your inventory item.

16. Save

17. Close the Supplier-Item Attributes and Approved Supplier List forms to return to the Navigator.

Note: Blanket purchase orders and quotations are not required to create an Approved Supplier List. In addition, it is not even necessary to associate a blanket purchase agreement or quotation in the Source Details window if you set the PO: Automatic Document Sourcing profile option to “Yes”.




Agenda

Agenda

• Create the approved supplier list• Create sourcing rules• Understand setup options• Understand additional implementation

considerations




Sourcing Rules Overview


Source Details

SourceSupplier

SiteContact

Phone

From Sourcing Rule

Type Document Line Num

SupplierStar Gate


Use the Sourcing Rules window to define a sourcing rule that defaults a supplier and optionally a supplier site, contact and phone number on your requisition.




Sourcing Rules

Sourcing Rules

Supplier B40 %

Rank 1

Supplier A60 %

Rank 1

Effective: 01-JAN-97 to 31-DEC-03

Supplier A100 % Rank 1

Effective: 01-JAN-04

Supplier C100 % Rank 2

Supplier C100 % Rank 2

Sourcing Rules

Purchasing Responsibility (N) Supply Base > Sourcing Rules Sourcing Rules Sourcing defaults can dramatically increase operational efficiency. They can:

• Automatically allocate planned orders across different suppliers using percentage splits • Define global or local rules for individual items and entire commodities • Maintain sourcing details at supplier and site • Define effective dates for each rule • Assign sourcing rules at different levels using an assignment set • Classify and rank multiple sources

Sourcing rules define for an organization or a group of organizations replenishment sources that can be applied to specific items. With sourcing rules that are made up of multiple suppliers, you can assign allocation percentages to each supplier and rank the suppliers if the percentages are equal.




Oracle Products That Use Sourcing Rules

Oracle Products That Use Sourcing Rules

Purchasing

Supply

Chain Planning

Planning

Supplier

Scheduling




Create a Sourcing Rule


Assignment

Supplier Scheduling

• Supplier A• Site• Contact

Sourcing Rule

Hard Drives

Supplier B40 %

Rank 1

Supplier A60 %

Rank 1

Item CM13139


Enter an allocation percentage for each shipping organization. Allocation percentage includes the number of planned orders issued over the specified planning horizon. Your total allocation may not exceed 100% for each rank. If the allocation percentage for all shipping organizations included within a range of effectivity dates equals 100, Planning Active is checked. If planning is not active for the sourcing rule, the planning process will not use the rule. For requisitions submitted in Purchasing, the percentage allocations are completely ignored. To determine which supplier is defaulted onto the requisition, Purchasing chooses the supplier with the highest percentage regardless of the rank. When two suppliers share the same percentage and that percentage is higher than any other supplier, the rank determines which supplier defaults onto the requisition. Supplier catalogs are loaded into iProcurement with sourcing information included. If the catalog is external, a specific supplier or marketplace hosts the items so they are already linked to a supplier.




Create a Sourcing Rule Assignment

Create a Sourcing Rule AssignmentSourcing Rule

Hard Drives Assignment

Supplier Scheduling

Supplier B40 %

Rank 1

Supplier A60 %

Rank 1

Item CM13139

• Supplier A• Site• Contact

Create Sourcing Rule Assignment

Purchasing Responsibility (N) Supply Base > Sourcing Rule Assignments Choose an Assignment Set Using the MRP: Default Sourcing Assignment Set profile option in the Profile Options window at the Site level. The assignment set you specify in this profile option is automatically assigned to every MPS, MRP and DRP in the organization. You can override this default when you define the material plan options, but only in Supply Chain Planning. Note: For Purchasing to use the sourcing rule, the sourcing rule must be added to the assignment set specified by the MRP: Default Sourcing Assignment Set profile option. If users add sourcing rules to any other assignment set, Purchasing will not pick them up. This is the primary reason some customers can’t get their POs and requisitions to source automatically. Assign the Rule to One of Six Levels

• Item/inventory organization combination




• Item • Category/inventory organization combination • Category • Inventory organization • Global




Levels of Sourcing Rule Assignments


• Item/organization• Item • Category/organization• Category• Inventory organization• Global

Item CM13139 COMPUTER-PC SeattleManufacturing

Global

Item/ Organization


The assignments are listed in order of precedence. For example, sourcing rules assigned to the Item/Inventory organization level will take precedence over all others. Sourcing rules assigned to any level will override sourcing rules assignments that are Global. When an item and category are specified on a requisition, Purchasing will first look to see if an assignment exists for that item and the inventory organization for which it is being requisitioned. If an assignment is found, the sourcing rule associated with the assignment is used to determine the supplier that will default on to the requisition. Purchasing will select the supplier with the highest percent allocation, regardless of rank. If an assignment is not found, Purchasing will look to see if an assignment exists for the item. If the assignment is found, the sourcing rule associated with the assignment is used to determine the supplier that will default on to the requisition. And so on.




Sourcing Rules with an ASL Source Document


SourceSupplier

SiteContact

Phone

From Sourcing Rule

Type Document Line NumFrom ASLQuotation 500 3

SupplierStar Gate

PO: Automatic Document Sourcing = No

Source Details


If an approved supplier list is defined for a specific item with a supporting source document and both sourcing rule assignments and sourcing rules are defined, the supplier and supplier site information defaults based on the sourcing rule assignment, the sourcing rule and the source document information on the approved supplier list.




Sourcing Rules without an ASL Source Document


Source Details

SourceSupplier

SiteContact

Phone

From Sourcing Rule

Type Line Num Defaults without an ASL

Quotation 500 3

SupplierStar Gate

PO: Automatic Document Sourcing = Yes

Document


If the PO: Automatic Document Sourcing profile option is set to Yes, source document information will still default to purchase documents even if no source document is specified on an approved supplier list. Purchasing searches for blanket purchase agreements and catalog quotations to use. If multiple documents exist, Purchasing will always select a blanket purchase agreement over a catalog quote. If multiple blanket purchase agreements exist, Purchasing will select the one with the most recent creation date.




Default Sourcing Information to Requisitions


Quotation

Blanket Agreement

BuyerSupplier Item

Doc. TypeSource Doc.Source Line

Price- - - - - -

SupplierSite

Contact

Requisition

From Sourcing

Rule

From Source

Document


For requisitions, if you define a blanket purchase agreement or quotation as the source document for your item, and define and assign sourcing rules, Purchasing provides the following sourcing information for your requisition line: Buyer, Supplier, Supplier Site, Contact, Phone, Supplier Item Number, Document Type (Blanket or Quotation) Source Document, Source Line Number, and RFQ Required (Yes or No). Once you save the requisition line, Purchasing also defaults the price from the source document. You can later review the sourcing information in the AutoCreate Documents window before placing the requisition line onto a purchase order. A requisition with a quotation as a source document becomes a standard purchase order. A requisition with a blanket purchase agreement as a source document becomes a blanket release.




Default Sourcing Information to Standard Purchase Orders


Quotation

ContractQuotationLine Num.

Quote TypeQuote Num.

Price StandardPOFrom

Source Document


For standard purchase orders, if you define a quotation as the source document for the item, and define and assign sourcing rules, Purchasing provides the following sourcing information for the purchase order line: Contract, Quotation, Quotation Line, Quotation Type, and Supplier Quotation number. Purchasing also defaults the price from the source document.




Guided Demonstration - Create a Sourcing Rule and a Sourcing Rule Assignment (Required)


(N) Supply Base > Sourcing Rules (M1 – Seattle Manufacturing)


1. Rule Name = XXComputer Hardware

2. All Orgs = Selected

3. From Date = Today’s date

4. Type = Buy From


6. Site = NEW YORK

7. Alloc % = 100%

8. Rank = 1

9. Save

Verify the Default Assignment Set

10. Navigate to the Personal Profile values window

11. (N) Personal Profiles

12. (M) View > Find

13. Profile = MRP:Default Sourcing Assignment Set

14. Verify default value = Supplier Scheduling

Note: Purchasing only uses sourcing rules assigned to the value in the MRP:Default Sourcing Assignment Set. It is essential this is clearly understood.


15. Navigate to the Sourcing Rule Assignments window

16. (N) Supply Base > Assign Sourcing Rule




17. (M) View > Find

18. Choose Supplier Scheduling from the list of values

19. In the Assignments region, click in the customer field.

20. (M) File > New

21. Assigned To = Item

22. Item/Category = XXMonitor

23. Type = Sourcing Rule

24. Sourcing Rule = XXComputer Hardware

25. Save

Create a Requisition/View Sourcing Information

26. Navigate to the Requisitions window.

27. (N) Requisitions > Requisitions


29. Tab out of the Item field.

30. Verify that supplier information appears to the right below the lines region.

31. Quantity = 50

32. Tab out of the field and verify that price breaks are defaulting in from your quotation.

33. (T) Source Details

34. Verify source document information from the ASL defaults.

35. Close the window without saving your work.

Create a Purchase Order/View Sourcing Information


37. (N) Purchase Orders > Purchase Orders


39. Site = NEW YORK




40. (T) Item


42. Quantity = 10

43. Verify price breaks are in effect

44. (T) Reference Documents

45. Verify quotation references have defaulted

46. Save

Remove the Source Document from the ASL

47. Navigate to the Approved Supplier List window

48. (N) Supply Base > Approved Supplier List

49. (M) View > Find


51. (B) OK


53. Place cursor in the Supplier field

54. (B) Attributes

55. Delete the quotation

56. Do NOT edit the Release Method. It should remain Release using Autocreate.

57. Save

Verify Sourcing Information does not Default



60. (T) Items


62. (T) Items




63. Verify the supplier information that appears to the right below the lines region.

64. Quantity = 10

65. Tab out of the field and verify that price breaks are no longer defaulting from your quotation.


67. Verify there is no quotation information.


69. Record the reason supplier information STILL defaults

__________________________________________________________________




Guided Demonstration - Enable Automatic Document Sourcing (Required)


(N) Personal Profiles

Automatic document sourcing is an 11i enhancement to sourcing rules. Using automatic document sourcing makes maintaining ASLs easier since no source document needs to be specified.

Instructor Note: Prior to the demonstration, turn on Automatic Document Sourcing using the System Administrator responsibility. Set the value to Yes at the Site level.

Verify Automatic Document Sourcing is Enabled

1. Query “PO%Auto%” in the Personal Profiles window.

2. Verify that the profile PO: Automatic Document Sourcing is set to Yes.

Create a New Requisition Line/Verify Sourcing Information Defaults



5. (T) Items

6. Item = XXMonitor

7. Quantity = 10


9. Verify that quotation information has defaulted.

10. Verify the agreement details and the supplier information that appears below the lines region.


Note: When using automatic document sourcing, documents are searched for and defaulted onto the requisition or purchase order based on the following rules:

1. Blanket purchase agreements are always defaulted before quotations, even if the quotation is more recent.




2. If only blanket purchase agreements and quotations exist, the most recent one (create dates are compared) is used.




Practice - Create a Sourcing Rule and a Sourcing Rule Assignment

Overview

In this practice you will create sourcing rules and sourcing rule assignments.

Assumptions



Tasks



You allocate all computer hardware purchases to a single supplier Advanced Network Devices. Create a global sourcing rule to accomplish that.

− Rule Name = XXComputer Hardware − All Orgs = Selected − Type = Buy From − Supplier = Advanced Network Devices − Site = SANTA CLARA


Since purchasing only uses the default assignment set specified by the MRP: Default Sourcing Assignment Set profile option, you should verify the value prior to creating a sourcing rule assignment in Purchasing.

1. Navigate to the Personal Profile values window − Profile = MRP:Default Sourcing Assignment Set − Verify default value = Supplier Scheduling


Create a sourcing rule assignment for the Supplier Scheduling assignment set. The sourcing rule assignment should tie the supplier specified in your sourcing rule to your XXMonitor item.




2. Navigate to the Sourcing Rule Assignments window − Assigned To = Item − Item/Category = XXMonitor − Sourcing Rule = XXComputer Hardware



Create a requisition for your XXMonitor item. Verify that supplier information is supplied by your sourcing rule.


5. Tab to the Quantity field and enter 50. Tab out of the field and verify that price breaks are defaulting in from your quote.




8. Create a purchase order for your XXMonitor item.

9. Supplier = Advanced Network Devices − Site = SANTA CLARA − Item = XXMonitor





13. Query the approved supplier list for your XXMonitor item and remove the source document.

Verify Source Document Information does not Default


15. Create a requisition for your XXMonitor item.






18. The reason supplier information still defaults is:

__________________________________________________________________




Solution - Create a Sourcing Rule and a Sourcing Rule Assignment



1. Navigate to the sourcing rules window.

• (N) Supply Base > Sourcing Rules (M1 – Seattle Manufacturing) − Rule Name = XXComputer Hardware − All Orgs = Selected − From Date = Today’s date − Type = Buy From − Supplier = Advanced Network Devices − Site = SANTA CLARA (Vision Operations) − Alloc % = 100% − Rank = 1

2. Save





3. Navigate to the Personal Profile values window

• (N) Personal Profiles

4. (M) View > Find − Profile = MRP:Default Sourcing Assignment Set − Verify default value = Supplier Scheduling

Note: Purchasing only uses sourcing rules assigned to the value in the MRP:Default Sourcing Assignment Set. It is essential this is clearly understood.


5. Navigate to the Sourcing Rule Assignments window

• (N) Supply Base > Assign Sourcing Rule

6. (M) View > Find

7. Choose Supplier Scheduling from the list of values

8. In the Assignments region, click in the customer field.

9. (M) File > New − Assigned To = Item − Item/Category = XXMonitor − Type = Sourcing Rule




− Sourcing Rule = XXComputer Hardware

10. Save



• (N) Requisitions > Requisitions − Item = XXMonitor

12. Tab out of the Item field.


14. Tab to the Quantity field and enter 50. Tab out of the field and verify that price breaks are defaulting in from your quote.








• (N) Purchase Orders > Purchase Orders − Supplier = Advanced Network Devices − Site = SANTA CLARA − (T) Item − Item = XXMonitor − Quantity = 11


19. (T) Reference Documents




• (N) Supply Base > Approved Supplier List

22. (M) View > Find − Item = XXMonitor

23. (B) OK





25. Place cursor in the Supplier field

26. (B) Attributes

27. Delete the quotation

28. Save

Verify Source Document Information does not Default


• (N) Requisitions > Requisitions

30. (T) Items − Item = XXMonitor

31. (T) Items

32. Verify the supplier information that appears to the right below the lines region. − Quantity = 11

33. Tab out of the field and verify that price breaks are no longer defaulting in from your quote.



Note: If source document information still defaults, use the System Administrator responsibility to verify the PO: Automatic Document Sourcing profile option is set to No at the Site level.

36. The reason supplier information STILL defaults is:

__________________________________________________________________





Practice - Enable Automatic Document Sourcing

Overview

In this practice you will enable and use Automatic Document Sourcing.

Assumptions



Tasks


1. Navigate to the Personal Profiles window


3. Verify that the profile PO: Automatic Document Sourcing is set to Yes. If it is not set to Yes, you will need to use the System Administrator responsibility to set it to Yes at the Site level.

Create a New Requisition Line/Verify Sourcing Information Defaults − Item = XXMonitor

5. Verify that quotation information has defaulted in.

6. Verify the agreement number in the note window and the supplier information that appears below the lines region.




Solution - Enable Automatic Document Sourcing


1. Navigate to the System Profiles window

• (N) Personal Profiles


3. Verify that the profile PO: Automatic Document Sourcing is set to Yes. If it is not set to Yes, you will need to use the System Administrator responsibility to set it to Yes at the Site level.

Create a New Requisition Line/Verify Sourcing Information Defaults


• (N) Requisitions > Requisitions

5. (T) Items − Item = XXMonitor − Quantity = 11


7. Verify that quotation information has defaulted in.

8. Verify the agreement number in the note window and the supplier information that appears below the lines region.


Note: When using automatic document sourcing, documents are searched for and defaulted onto the requisition or purchase order based on the following rules:

Blanket purchase agreements are always defaulted before quotations, even if the quotation is more recent.

If only blanket purchase agreements and quotations exist, the most recent one (create dates are compared) is used.




Summary

Summary

You should now be able to do the following:• Define supplier statuses• Set up and use an approved supplier list• Set up and use sourcing rules• Understand how sourcing information defaults to

requisitions and purchase orders• Understand additional implementation

considerations



Requisitions Chapter 6 - Page 1

Requisitions Chapter 6




Requisitions

Requisitions






Purchase Orders

Receiving

Reporting

Invoice/ Payment


Supplier management

RFQs/ Quotations

CatalogContent

Management

Sourcing

Ordering

Analysis




Objectives

Objectives

After completing this module you should be able to do the following:• Create purchase requisitions• Identify key reports• Understand setup options• Understand additional implementation

considerations




Agenda

Agenda

• Understand the requisition process• Enter requisitions• Use the supplier item catalog• Identify key standard reports• Understand setup options• Understand additional implementation

considerations




Where Purchase Requisitions Fit


Import/reschedulerequisitions

Approval

Inventory WIP MRP

Demand

RequisitionRequisition

pool

Order MgmtInternalsales order

Manuallycreate

Order Mgmt

PO

Other Systems


Requisitions represent demand for goods and services. Demand can come from a variety of sources.




Requisition Lifecycle


No

Submit for Approval

In Process

Approve?

Approved

Requisition Pool

RejectedReturn

Pre-Approved

Approve?

Yes

No

Yes

Cancelled

PurchaseOrder


During the lifecycle of a requisition, many people can act on the requisition including: • Employees • Buyers or buyer-planners • Approvers • Suppliers • Purchasing staff




Send Notifications

Send Notifications

Your requisition was rejected!

Your requisitionNeeds re-approval!

Send Notifications

You can use the standard request submission form to schedule the Send Notifications for Purchasing Documents program to run periodically. The Send Notifications for Purchasing Documents program runs the Send Notifications workflow. The Send Notifications workflow sends notifications for requisitions that require approval because they are incomplete, rejected or in need of re-approval.




Agenda

Agenda


considerations




Requisition Structure

HEADER

LINE 1

DISTRIBUTION

LINE 2

DISTRIBUTION



Headers The requisition header contains detail relating to the overall purchase requisition. There can be only one header per requisition. Lines The requisition line contains details about the goods or services you want to order. There must be at least one line per requisition. Distributions Distributions contain the internal accounting distributions.




Requisition Preferences


• Provide default values when creating requisitions• Speed and simplify creating requisitions• Can be overridden if necessary• Are in effect for the current session


Using Requisition Preferences You can set up requisition preferences to enter requisition line defaults (including currency, destination, need-by date, and sourcing default information). These defaults are applicable during your user session to all new requisition lines created after you set the defaults until you exit Purchasing or change application responsibilities. Some of the fields that you can set defaults for:

• Need-by-date • Charge Account • Notes to Receiver/Buyer • Requestor • Ship-to location • Destination Type • Project Information




Requisition Header

Requisition Header

• Requisition number• Requisition type• Description• Preparer• Status• Requisition Amount• Attachments

HEADER

LINE

DISTRIBUTION

Purchase Requisition

Requisition Header

Purchasing Responsibility (N) Requisitions > Requisitions Requisition Number Enter a unique Requisition number. If automatic requisition number generation is active, the cursor does not enter this field and the number is generated when you save your work. Requisition Type There are two types of requisitions:

• Purchase Requisition - The demand generated from the requisition is fulfilled from an outside supplier by means of a purchase order.

• Internal Requisition - The demand generated from the requisition is satisfied from inventory by means of an internal sales order.

When you enter requisition lines, you can source them independently of the document type. You can mix inventory and supplier sourced requisition lines in the same requisition of either document type.




Description Optionally enter a requisition description. A good description may be helpful in finding your requisition later. Preparer The preparer name defaults based on the employee associated with the responsibility. Status Displays the status of the requisition. Requisition Amount Displays the extended amount of all lines on the requisition. Attachments Attachments may be added to the header of a requisition.




Requisition Line

Requisition Line

• Line Type• Item• Category• Description• Quantity• Unit of Measure• Price• Need-by Date• Tax Code

HEADER

LINE

DISTRIBUTION


Requisition Line

Line Type Enter a line Type for the requisition line. Line types help you define how you want to categorize your items. The default for this field is the Line Type from the Purchasing Options window. Line types let you distinguish between quantity and amount based line items. There are three classes of line types:

• Quantity-Based - You use quantity based line items when you know the quantity and price of the line you are ordering. For example, you might buy a dozen pens for $10.

• Amount-Based - You use amount based line items when you are ordering a service. For example, you might order $5,000 of consulting services over the next year.

• Outside Processing - Outside processing line types are necessary when you are using WIP and want to enter purchasing documents for outside processing operations in WIP. When you choose an outside processing line type on a purchasing document line, you can enter only outside processing items and the destination type can be only Shop Floor.

Item Both goods and services may be entered on requisition lines. For quantity-based line types and outside processing line types, use the list of values to choose the system item you want to




request. Purchasing displays defaults for purchasing category, item description, unit of measure, and unit price for this item. Category You cannot change the category if you specify an item number in the Item field. If you do not select a system item, you must specify a valid category (required field). Description Enter the item description to explain the item in further detail. When you enter an item number, Purchasing displays the item description from the Items window. You can change this description only if the Allow Description Update attribute for the item is enabled. Quantity Enter the Quantity you want to request for the item. You can enter decimal quantities, but you must enter a value greater than 0. If Quantity Rounding is enabled, Purchasing either displays the rounded quantity you should have entered in a warning message or it updates the quantity to the appropriate rounded quantity. Unit of Measure Enter the unit of measure you want to use for your requisition line. If you enter an item number, Purchasing defaults the unit of measure for the item. Price Enter the unit Price for the item. You can enter the price in decimal format. You must enter a value greater than or equal to 0. If you enter an item number, Purchasing defaults the list price for the item, but you can change this value. If you create a requisition line for an amount based line type, Purchasing sets the price to 1, and you cannot change it. Need-By Date Enter the Need-By date for the requested item. The Need-By date is required only for planned items. You must enter a date greater than or equal to the requisition creation date. Tax Code Enter or use the default Tax Code for taxable items. The tax code defaults from the Tax Defaults region in the Purchasing Options window.




Requisition Line

Requisition Line

• Destination Type• Requestor• Organization• Location• Source Type• Attachments

HEADER

LINE

DISTRIBUTION


Requisition Line (continued)

Destination Type • Expense - The goods are delivered to the requestor at an expense location. The

destination type of subinventory is not applicable. • Inventory - The goods are received into inventory upon delivery. • Shop Floor - The goods are delivered to an outside processing operation defined by Work

in Process. Purchasing uses this option for outside processing items. Requestor Enter the name of the employee who is requesting the item. You must provide a requestor before you can approve the requisition. The default requestor is the requisition preparer. Organization Enter the inventory organization. Location Enter the delivery Location for the requested items. Purchasing defaults the deliver–to location that you assign to the employee in the Enter Person window. Source Type




Enter a source type of Inventory or Supplier. Attachments Create attachments as needed.




Guided Demonstration - Create a Purchase Requisition (Required)


(N) Requisitions > Requisitions

Instructor Note: Turn off Automatic Document Sourcing

Requisition your Expensed Item

1. Description = XXPurchases

2. (T) Items

3. Item = XXSoftware

4. Quantity = 10

5. Need-by = Today’s Date

6. Destination Type = Expense

7. Organization = Seattle Manufacturing

8. Location = M1- Seattle

Note: The Organization and Location fields will default to the Organization and Location assigned to your HR Record.


10. Note to Buyer = Place order immediately!

11. Save

12. (T) Details

13. Urgent = Checked

14. Justification = Oracle implementation!

15. Save

Requisition your Inventory Item

16. (T) Items




17. (M) File > New

18. Item field on line 2 = XXMonitor

19. Quantity = 5

20. Need-by = Today’s Date

21. Destination Type = Inventory

22. Organization = Seattle Manufacturing


24. (T) Details

25. Note to Receiver = Inspect this item!

26. Save

27. Make a note of your requisition number

28. (B) Approve to approve the requisition.

29. Submit for Approval = Checked

30. OK

Note: The requisition will disappear from your screen unless it has a status of Incomplete. The status will be either Approved or In Process if you do not have enough approval authority to approve this requisition.

31. Close the Requisitions window.

32. Open the Requisitions Summary window.

33. (N) Requisitions > Requisition Summary.

34. In the Requisition Number field, enter the number of your requisition.

35. (B) Find

36. View the status of your requisition.




Practice - Create a Purchase Requisition

Overview

In this practice you will create a purchase requisition.

Assumptions



Tasks



Create an item that will be used in the M1 – Seattle Manufacturing inventory organization. Locate and set the following attributes.

1. Open the Master Item window − Item = XX Book Case − Description = XX Wood Book Case − Primary Unit of Measure = Each − Item Status = Active − Inventory Item = Checked − Purchased = Checked − Purchasable = Checked − Buyer = Stock, Ms. Pat − List Price = 389.00







Org Name




Create a Purchase Requisition for your new item.

3. Open the Requisition window

4. Enter your item

5. Enter quantity of 10

6. Need by today

7. Destination Type of Inventory

8. Use the Organization of Seattle Manufacturing

9. Use the Location of M1 Seattle

10. Enter a note to the receiver to inspect the item

11. Submit your requisition for approval




Solution - Create a Purchase Requisition



1. Open the Master Items window:

• (N) Items > Master Items − Item = XX Wood Book Case − Description = XX Wood Book Case



4. Save





5. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Buyer = Stock, Ms. Pat − List Price = 389.00

6. Save

7. (T) Receiving


9. Save







Org Name




11. Save





Create a Purchase Requisition for your new Item

13. Open the Requisitions window:

• (N) Requisitions>Requisitions

14. Click on the Items tab. − Item = 00 Wood Book Case − Quanitiy = 10 − Need-by = Today’s Date − Destination Type = Inventory − Organization = Seattle Manufacturing − Location = M1-Seattle




15. Click on the Details tab − Note to Receiver = Besure to inspect this item




16. Save

17. Make a note of your requisition number

18. Click the Approve button to approve the requisition

19. Select the Submit for Approval option button

20. OK

21. OK




Agenda

Agenda


considerations




Supplier Item Catalog


View the Supplier Item Catalog to:• Add lines to an existing requisition• Add items to a new requisition• View purchase and price history• Quantity• Charge Account• Project Information

Create requisitions lines


The Supplier Item Catalog provides a simple mechanism for locating items and their source information for creating requisition lines. Use the Supplier item catalog to:

• View purchase or price history. • Select quotation or blanket purchase agreements with price breaks to place onto

requisition lines. • Place source lines onto the Order Pad, where you can modify them before placing them

onto requisitions.




Using the Supplier Item Catalog

Using the Supplier Item Catalog

• Access from menu orfrom requisition

• Find for items by enteringsearch criteria

• View results in the fourtabbed regions.

• Place lines onto theOrder Pad.

• Select Order Pad lines toadd to requisition.

Requisition Line

Search Supplier Item Catalog


Negotiated Sources

Prior Purchases

Sourcing Rules

Requisition Templates

Order Pad

Using the Supplier Item Catalog Supplier Item Catalog Window

There are four tabbed regions in the the Supplier Item Catalog window, but Function Security can be used to determine whether a user will be able to see all of them. A profile option (PO: Default Supplier Item Catalog Option) determines which of these tabbed regions is the default. The four tabbed regions are:

• Negotiated Sources - Blanket purchase agreements, quotations, and planned purchase orders.

• Prior Purchases - Actual past buys, including standard purchase orders, scheduled releases and blanket purchase agreement releases.

• Sourcing Rules - Defined sourcing rules. • Requisition Templates - The PO: Legal Requisition Type profile option governs whether

templates for supplier and internally sourced lines are displayed.




Guided Demonstration - Create a Requisition Template (Required)


(N) Setup > Purchasing > Requisition Templates

Create a Requisition Template

1. Template = XXReqTemplate

2. Description = Computer Hardware

3. Inactive Date = One month from today

4. Type = Purchase Requisition

5. Save

Copy From a Base Document

6. (B) Copy to open the Base Document window.

7. Type = Requisition

8. Number field = Your purchase requisition from the earlier lab

9. Click OK to copy all lines of the base document onto the template.

10. Save

11. Manually add lines 3-5 according to the table:

Num Item Category Description Source

1 XXSoftware XX.COMPUTER Expensed Item Supplier

2 XXMonitor XX.COMPUTER Inventory Item Supplier

3 CM13139 PRODUCTN.DRIVES 8GB Hard Drive Supplier

4 CM15138 PRODUCTN.DRIVES Monitor - 17"(16" Viewable) Short Depth

Supplier

5 CM18759 PRODUCTN.DRIVES Keyboard - 101 Key Supplier




Note: For supplier-sourced lines, you can enter the unit price, and this price is used in the Requisitions window. For inventory source lines, the cursor does not enter this field, and the price in the Requisitions window is the actual cost from inventory. You can enter sourcing information for the current line in the lower part of the screen.

12. Save




Guided Demonstration - Use the Supplier Item Catalog to Create a Requisition (Required)


(N) Requisitions > Requisitions

Create a Requisition

1. Type = Purchase Requisition

Search the Supplier Item Catalog

2. (T) Items

3. Place cursor in Num field

4. (B) Catalog

5. (B) Clear

6. Requisition Template = XXRequisition Template

7. (B) Find

Add Lines to the Order Pad

8. (B) Options

9. Need-By = Next week

10. Organization = M1


12. (B) OK

13. (T) Requisition Templates

14. Select the first line item

15. (B) Add

16. Repeat until each line from your requisition template is on the order pad.

Note: The PO: Default Supplier Item Catalog profile option determines which tab is selected as a default!




Copy Items from the Order Pad to the Requisition

17. (B) Select

18. Save

19. (B) Approve




Practice - Create a Requisition Template

Overview

In this practice you will create a purchase requisition template.

Assumptions



Tasks


Create a requisition template

Create a requisition template using your earlier requisition as well as three system items.

1. Open the Requisition template window − Template = XX ReqTemplate − Description = XX ReqTemplate Items − Inactive Date = One month from today − Type Field = Purchase Requisition

2. Copy from Base Document − Type = Requisition − Number = your earlier requisition

3. Manually add lines 2-4 according to the table:

Num Item Category Description Source

1 XX Wood Book Case

MISC.MISC Inventory Item Supplier

2 CM13139 PRODUCTN.DRIVE 8GB Hard Drive Supplier

3 CM15138 PRODUCTN.DRIVE Monitor - 17"(16" Viewable) Short Depth

Supplier

4 CM18759 PRODUCTN.DRIVE Keyboard - 101 Key Supplier




Solution - Create a Requisition Template


Create a Requisition Template

1. Open the Requisition Template window:

• (N) Setup>Purchasing>Requisition Templates − Template = XX ReqTemplate − Description = XX ReqTemplate Items − Inactive Date = One month from today − Type field = Purchase Requisition

2. Save

Copy From Base Document

3. Click the Copy button to open the Base Documents window




− Type = Requisition − Number field = your purchase requisition from the earlier lab

4. Click OK to copy all lines of the base document onto the template.

5. Save

6. Manually and lines 2-4 according to the table:

Num Item Category Description Source 1 XX Wood Book

Case MISC.MISC Inventory Item Supplier

2 CM13139 PRODUCTN.DRIVE 8GB Hard Drive Supplier 3 CM15138 PRODUCTN.DRIVE Monitor - 17"(16" Viewable)

Short Depth Supplier

4 CM18759 PRODUCTN.DRIVE Keyboard - 101 Key Supplier

Note: For supplier-sourced lines, you can enter the unit price, and this price is used in the Requisitions window. For inventory source lines, the cursor does not enter this field, and the price in the Requisitions window is the actual cost from inventory. You can enter sourcing information for the current line in the lower part of the screen.




7. Save




Practice - Use the Supplier Item Catalog to Create a Requisition

Overview

In this practice you will create a purchase requisition using your requisition template.

Assumptions



Tasks


Create a purchase requisition using your template

1. Create a purchase requisition using your purchase requisition template.

2. Open the Requisition window

3. Open the Supplier Item Catalog window

4. Search for your Requisition Template

5. Select your XX Wood Book Case and add it to the Order Pad

6. Change the Quantity to 2

7. Enter a need by date of one week from today

8. Deliver to Org is M1

9. Deliver to Location is Seattle Manufacturing

10. Add this line to the requisition

11. Submit the requisition for approval




Solution - Use the Supplier Item Catalog to Create a Requisition


Create a Purchase Requisition using your Requisition Template

1. Open the Requisitions window:

• (N) Requisitions>Requisitions

2. Click on the Catalog button.

3. Click the Clear button − Requisition Template = your template from earlier.

4. Click the Find button

5. Click the Requisition Templates tab

6. Place your curser on the line containing your XX Book Case

7. Click the Add button




Note: The item you select will be copied down to the Order Pad with a default Quantity of 1.

− Quantity = 2 − Need by Date = One week from today − Deliver to Org = M1 − Deliver to Location = M1-Seattle

8. Click the Select button

Note: Your lines on the order pad will now be moved to your requisition.

9. Save




10. Make a note of your requisition number.

11. Click the Approve button to approve your requisition

12. OK

13. OK




Requisition Distribution


• Quantity• Charge account• Project information

HEADER

LINE

DISTRIBUTION



Quantity Enter the Quantity you want to distribute. If you do not specify a quantity equal to the quantity on the requisition line, you must add additional distributions until the quantity equals the quantity specified on the distribution line. Charge Account When you enter a Charge Account, Purchasing uses Account Generator to automatically create the following accounts for each distribution:

• Accrual - the AP accrual account • Variance - the invoice price variance account • Budget - the encumbrance budget account (only if using encumbrances)

Account Generator creates these accounts based on predefined rules. If the requisition line destination type is Expense, you can enter a charge account or override the charge account supplied by Account Generator. Project Information




The project information you enter is used by Projects if the destination types is Expense, or by Project Manufacturing if the destination types is Inventory or Shop Floor.




Allocating Costs to Multiple Charge Accounts

01-510-000-1698

01-510-200-8596

75%

25%Copier Paper

Item Account Distribution


• You can allocate the cost of a line item to different charge accounts.

• You can do this by percent, quantity or amount.


You can allocate the cost of a line item to different charge accounts if the destination type is Expense. You cannot have multiple distributions if the destination type is Inventory. To allocate by percent, you could choose a quantity of 1 when creating the requisition line. In the requisition distributions form, specify the decimal quantities that add up to 1. For example, if you were to create distributions for the copier paper on this slide, specify .75 for the quantity on distribution line 1 and .25 for the quantity on distribution line 2.




Submitting Requisitions for Approval

Submitting Requisitions for Approval

• Route requisitions according to approval structure.• Uses predefined or customized workflows in

Workflow.• Authorization limits can be set by amount, charge

account, item category and location.• Resubmit a rejected requisition.

Submitting Requisitions for Approval PO Requisition Approval Workflow

The PO Requisition Approval workflow is initiated at the following points in Purchasing: • When you choose Submit for Approval (and then choose OK) in the Approve Document

window in Purchasing or submit a requisition for approval in iProcurement. • When you respond to a reminder in the Notifications Summary window reminding you to

submit a document for approval that has not yet been submitted. • When you run the Requisition Import program. If the requisitions are incomplete or

preapproved, the Requisition Import program launches the PO Requisition Approval workflow to approve the requisitions, unless you specify not to.




Approving Requisitions


• Review and approve or reject requisitions on-line.• Forward requisitions to an alternate approver.• Update requisitions before approving them. • Approve requisition by

– Workflow Notification Viewer– Notifications web page– Responding to a notification e-mail


Workflow will route Requisitions to the correct person for approval based on rules you define, i.e. (amount, charge account, item, item category, or ship to location). Refer to - Document Security, Routing, Approvals for additional information.






• Use requisition templates to simplify the processof requisitioning frequently requested items.

• Consists of items, pricing andsourcing information.

Requisition template Requisitions


Purchasing Responsibility (N) Setup > Purchasing > Requisition Templates Creating Templates You can specify items individually on a requisition template, or you can reference an existing requisition or purchase order to copy items on to requisition templates you create. You can copy lines from multiple documents to combine them and create one template. Requesters can use templates to create requisitions using the order pad when they select the Supplier Item Catalog button.




Requisition Actions

Requisition Actions

You can also do the following with requisitions:• Update requisitions• Cancel/Final close requisitions• View status and action history of requisitions • Print requisitions• Review requisition assignments and

assign/reassign requisitions to buyers




Agenda

Agenda


considerations




Reports

Reports

Requisition Activity Register

Purchase Requisition Status

Buyer’s Requisition Action Required

Cancelled Requisitions Report

Printed Requisitions Report

ReqExpress Templates Listing

Requisition Distribution Detail Report

Reports

Requisition Activity Register The Requisition Activity Register shows requisition activity and monetary values. Purchasing prints requisitions in order of creation date and preparer name. Purchase Requisition Status The Purchase Requisition Status Report can be used to review the status of the requisitions you create. By specifying a status, you can use the report as a tool to plan and monitor buyer workload. You can also use the report to monitor requisitions in the approval process or requisitions that have been returned and as a result, require further attention. Buyer’s Requisition Action Required The Buyer’s Requisition Action Required Report identifies all or specific approved requisition lines that buyers have not placed on purchase documents. You can use the AutoCreate Documents window to modify requisition lines, return requisitions, or place them onto a purchase documents. Cancelled Requisitions Report Use the Cancelled Requisitions Report to review information related to cancelled requisitions.




Printed Requisitions Report The Printed Requisitions Report lists requisitions that have the following status: Approved, Rejected, In Process, Pre-Approved, and Returned. The report does not include requisitions with a status Incomplete or cancelled. You can circulate the Printed Requisitions report for signature approvals and notes. In the Approver field the report prints the name of the last person who performed an action on the requisition. This may not necessarily be the approver. ReqExpress Templates Listing The ReqExpress Templates Listing shows requisition template detail information. The report lists sourcing information appropriate for the source type. For the Inventory source type, this will be the organization and subinventory. For the Supplier source type, this will be the buyer, supplier, supplier site, contact, supplier item number, and RFQ Required flag value. Requisition Distribution Detail Report The Requisition Distribution Detail Report lists requisitions, their distributions, and charge account information. You can also use the report to review requisitions that failed funds reservation if you have enabled encumbrances. Totals print only if encumbrances have been enabled.




Summary

Summary

You should now be able to do the following:• Create purchase requisitions• Identify key reports• Understand setup options• Understand additional implementation

considerations

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