Oracle PurchasingUser's GuideRelease 12.2 Part No. E48931-07

August 2017

Oracle Purchasing User's Guide, Release 12.2

Part No. E48931-07

Copyright 1996, 2017, Oracle and/or its affiliates. All rights reserved.

Primary Author: Pratima Mahtani

Contributing Author: Gowri Arur, Pragya Nair, Procurement Product Management Team, Procurement Development Team

This software and related documentation are provided under a license agreement containing restrictions on use and disclosure and are protected by intellectual property laws. Except as expressly permitted in your license agreement or allowed by law, you may not use, copy, reproduce, translate, broadcast, modify, license, transmit, distribute, exhibit, perform, publish, or display any part, in any form, or by any means. Reverse engineering, disassembly, or decompilation of this software, unless required by law for interoperability, is prohibited.

The information contained herein is subject to change without notice and is not warranted to be error-free. If you find any errors, please report them to us in writing.

If this is software or related documentation that is delivered to the U.S. Government or anyone licensing it on behalf of the U.S. Government, then the following notice is applicable:

U.S. GOVERNMENT END USERS: Oracle programs, including any operating system, integrated software, any programs installed on the hardware, and/or documentation, delivered to U.S. Government end users are "commercial computer software" pursuant to the applicable Federal Acquisition Regulation and agency-specific supplemental regulations. As such, use, duplication, disclosure, modification, and adaptation of the programs, including any operating system, integrated software, any programs installed on the hardware, and/or documentation, shall be subject to license terms and license restrictions applicable to the programs. Noother rights are granted to the U.S. Government.

This software or hardware is developed for general use in a variety of information management applications. It is not developed or intended for use in any inherently dangerous applications, including applications that may create a risk of personal injury. If you use this software or hardware in dangerous applications, then you shall be responsible to take all appropriate fail-safe, backup, redundancy, and other measures to ensure its safe use. Oracle Corporation and its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerous applications.

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group.

This software or hardware and documentation may provide access to or information about content, products, and services from third parties. Oracle Corporation and its affiliates are not responsible for and expressly disclaim all warranties of any kind with respect to third-party content, products, and services unless otherwise set forth in an applicable agreement between you and Oracle. Oracle Corporation and its affiliates will not be responsible for any loss, costs, or damages incurred due to your access to or use of third-party content, products, or services, except as set forth in an applicable agreement between you and Oracle.

For information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website at http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc.

Oracle customers that have purchased support have access to electronic support through My Oracle Support. For information, visit http://www.oracle.com/pls/topic/lookup?ctx=acc&id=info or visit http://www.oracle.com/pls/topic/lookup?ctx=acc&id=trs if you are hearing impaired.

http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacchttp://www.oracle.com/pls/topic/lookup?ctx=acc&id=infohttp://www.oracle.com/pls/topic/lookup?ctx=acc&id=trshttp://www.oracle.com/pls/topic/lookup?ctx=acc&id=trs

iii

Contents

Send Us Your Comments

Preface

1 Setting Up

Overview of Setting Up............................................................................................................ 1-1Defining Locations..................................................................................................................1-18Defining Buyers...................................................................................................................... 1-20Defining Approval Groups.....................................................................................................1-21Assigning Approval Groups................................................................................................... 1-24Annotating Purchasing Documents........................................................................................1-26

Managing Attachments......................................................................................................1-28Attaching Notes to Purchasing Documents....................................................................... 1-33

Defining Purchasing Options................................................................................................. 1-33Defining Receiving Options................................................................................................... 1-43Defining Requisition Templates............................................................................................ 1-48Purchasing Hazardous Materials............................................................................................ 1-52

Regulation Background..................................................................................................... 1-52Defining Hazard Classes....................................................................................................1-54Defining UN Numbers.......................................................................................................1-56

Defining Lookup Codes..........................................................................................................1-57Defining Quality Inspection Codes........................................................................................1-59Line Types in Purchasing Documents.................................................................................... 1-60

Defining Line Types...........................................................................................................1-63Purchasing Services ................................................................................................................1-67Defining Document Types......................................................................................................1-68

iv

Defining Document Styles......................................................................................................1-75Setting Up Tolerances and Routings...................................................................................... 1-82Defining Tolerances for Change Orders................................................................................ 1-85Defining Tolerances and Routing for Requester Change Orders..........................................1-85Defining Tolerances and Routing for Supplier Change Orders............................................1-87Defining Options for Acceptance of Agreement Changes.....................................................1-88Purchase Order Communication Setup Steps........................................................................ 1-89Center-Led Procurement Setup...............................................................................................1-93Controlling Purchasing Periods..............................................................................................1-95Expense Charge Account Rules...............................................................................................1-97Choosing Workflow Options..................................................................................................1-98iProcurement Setup Windows.............................................................................................. 1-103Oracle Services Procurement................................................................................................ 1-104Define Job and Category Association...................................................................................1-105Setting up Supplier Scheduling ...........................................................................................1-107

2 Approval, Security, and Control

Setting Up Document Approval and Security..........................................................................2-1Position Hierarchies.................................................................................................................. 2-6Document Security and Access.................................................................................................2-7Approval Routing....................................................................................................................2-10Approval Authorization Control............................................................................................ 2-12

Defining Approval Authorization Rules............................................................................2-13Using Approval Assignments............................................................................................2-15

Assigning Employees..............................................................................................................2-19The Document Approval Process........................................................................................... 2-19

Approved Documents and Supply.................................................................................... 2-21Document Status Checks................................................................................................... 2-21Document Submission Checks...........................................................................................2-22Viewing and Responding to Approval Notifications.........................................................2-29

Submitting a Document for Approval....................................................................................2-33Offline Approvers................................................................................................................... 2-39Mass Forwarding Documents................................................................................................. 2-40Document Control Overview..................................................................................................2-41

Document Control Options................................................................................................2-42Purchase Order Control Matrices...................................................................................... 2-47Document Control Applicability Matrix............................................................................2-50Document Control Status Check Matrix............................................................................ 2-52Document Control Submission Check Matrix................................................................... 2-54

Controlling Documents...........................................................................................................2-58

v

MassCancel..............................................................................................................................2-62Defining MassCancel......................................................................................................... 2-62Define MassCancel Listing.................................................................................................2-66Running MassCancel......................................................................................................... 2-68Run MassCancel Listing.................................................................................................... 2-69

3 Oracle Approvals Management (AME) for Purchase Order Review, Approval, and Multiple E-Signatures

Using AME for Purchase Order Review, Approval, and Multiple E-Signatures.................... 3-1Purchase Order Approval Transaction Type ........................................................................... 3-6Setting Up AME for Purchase Order Review, Approval, and Multiple E-Signatures.......... 3-10

4 Requisitions

Overview of Requisitions......................................................................................................... 4-1Requisition Types................................................................................................................ 4-6Reserving Funds for Requisitions........................................................................................ 4-8

Reviewing Requisitions............................................................................................................4-9Managing Requisitions........................................................................................................ 4-9Updating Requisitions....................................................................................................... 4-12

Overview of Internal Requisitions......................................................................................... 4-13Demand for Internal Requisitions......................................................................................4-16Internal Requisition Approvals..........................................................................................4-18Creation of Internal Sales Orders.......................................................................................4-19Management of Internal Sales Orders................................................................................4-20Pick Release for Internal Sales Orders................................................................................4-21Ship Confirmation for Internal Sales Orders......................................................................4-21Management of Internal Requisitions................................................................................4-22Internal Requisitions Processing Summary....................................................................... 4-23Internal Requisitions Setup Overview............................................................................... 4-24Minimum Order Management Setup for Internal Requisitions......................................... 4-25Minimum Shipping Execution Setup for Internal Requisitions......................................... 4-26Minimum Purchasing Setup for Internal Requisitions.......................................................4-27Minimum Inventory Setup for Internal Requisitions.........................................................4-28Online Processing Automation for Internal Requisitions.................................................. 4-30Internal Requisitions Example........................................................................................... 4-31

Finding Requisitions...............................................................................................................4-36Using the Requisition Headers Summary Window............................................................... 4-39Using the Requisition Lines Summary Window....................................................................4-40Using the Requisition Distributions Summary Window...................................................... 4-42Entering Requisition Preferences........................................................................................... 4-43

vi

Entering Requisition Headers.................................................................................................4-47Entering Requisition Lines..................................................................................................... 4-50Entering Requisition Distributions........................................................................................ 4-57Using Requisition Templates................................................................................................. 4-60

5 Purchase Orders

Overview of Purchase Orders................................................................................................... 5-1Purchase Order Types..........................................................................................................5-2Purchase Order Features......................................................................................................5-4

Defaulting Rules for Purchase Orders Created Using Forms................................................ 5-11Finding Purchase Orders.........................................................................................................5-24

Using the Purchase Order Headers Summary Window.................................................... 5-28Using the Purchase Order Lines Summary Window......................................................... 5-32Using the Purchase Order Shipments Summary Window.................................................5-34Using the Purchase Order Distributions Summary Window.............................................5-36

Entering Purchase Order Preferences in Forms......................................................................5-38Entering Purchase Order Headers...........................................................................................5-42Entering Purchase Order Lines............................................................................................... 5-48Entering Purchase Order Price Reference Information..........................................................5-52Entering Purchase Order Reference Document Information.................................................5-53Entering Purchase Order Miscellaneous Information........................................................... 5-55Entering Purchase Agreement Information............................................................................5-57Entering Purchase Order Temporary Labor Information.......................................................5-60Entering Currency Information.............................................................................................. 5-61Entering Purchase Order Details Information....................................................................... 5-62Entering Purchase Order Shipments...................................................................................... 5-67Entering Purchase Order Receiving Controls.........................................................................5-72Entering Purchase Agreement Price Break Information........................................................ 5-74Entering Purchase Order Distributions..................................................................................5-76Entering Outside Services Information..................................................................................5-80Entering Purchase Order Notification Controls..................................................................... 5-81Entering and Viewing Purchase Order Acceptances..............................................................5-82Entering Releases.................................................................................................................... 5-85

Entering Release Headers.................................................................................................. 5-85Entering Release Shipments...............................................................................................5-88Entering Release Distributions...........................................................................................5-93

Automatic Release Generation............................................................................................... 5-96Copying Purchase Orders....................................................................................................... 5-99Document Revision Numbering...........................................................................................5-103

Document Revision Rules................................................................................................5-104

vii

Document Reapproval Rules........................................................................................... 5-108Changing Encumbered Documents...................................................................................... 5-113Drop Shipments.................................................................................................................... 5-114Tax Information in Purchasing............................................................................................. 5-117

Viewing Tax Information.................................................................................................5-119Procurement Card Purchase Orders and Releases................................................................5-119Global Agreements............................................................................................................... 5-122

6 Supply Base Management

Overview of Sourcing, RFQs, and Quotations......................................................................... 6-1RFQs and Quotations..........................................................................................................6-4

Supplier Item Catalog............................................................................................................... 6-5Finding Supplier Items........................................................................................................ 6-9Using the Supplier Item Catalog Tabbed Regions............................................................. 6-13Entering Order Pad Options (from Requisitions).............................................................. 6-16

Receiving Price/Sales Catalog Information Electronically.....................................................6-18Setting a Price Tolerance in a Price/Sales Catalog Update................................................. 6-20Monitoring Price Increases in a Price/Sales Catalog Update..............................................6-21

Overview of Automatic Sourcing........................................................................................... 6-23Setting Up Automatic Sourcing......................................................................................... 6-26Defining Sourcing Rules.................................................................................................... 6-30Assigning Sourcing Rules and Bills of Distribution...........................................................6-32

Approved Supplier List...........................................................................................................6-34ASL Repository Maintenance............................................................................................ 6-35ASL Business Needs.......................................................................................................... 6-36Defining Approved Supplier Statuses............................................................................... 6-37Defining the Supplier and Item/Commodity Combination............................................... 6-39Defining the Supplier-Item Attributes............................................................................... 6-42View Approved Suppliers................................................................................................. 6-47

Entering RFQs......................................................................................................................... 6-48Entering RFQ Headers.......................................................................................................6-48Entering RFQ Lines............................................................................................................6-52Entering RFQ Supplier Information...................................................................................6-54Entering RFQ Terms Information...................................................................................... 6-56Entering RFQ Shipment Information.................................................................................6-57Entering RFQ Price Break Information.............................................................................. 6-59

Entering Quotations................................................................................................................ 6-61Entering Quotation Headers..............................................................................................6-61Entering Quotation Lines...................................................................................................6-65Entering Quotation Terms Information............................................................................. 6-68

viii

Entering Quotation Shipment Information........................................................................6-69Entering Quotation Price Break Information..................................................................... 6-71

Copying Quotations from RFQs............................................................................................. 6-73Approving Quotations............................................................................................................ 6-74

Finding Quotations for Approval...................................................................................... 6-74Approving Quotation Shipments...................................................................................... 6-76Approving Entire Quotations............................................................................................ 6-78

Defining Supplier Lists...........................................................................................................6-80Managing Buyer Workload.....................................................................................................6-82

Finding Requisition Lines for Review or Assignment....................................................... 6-82Reviewing Buyer Workload...............................................................................................6-84Assigning Requisition Lines.............................................................................................. 6-85

7 AutoCreate

AutoCreate Documents Overview............................................................................................ 7-1AutoCreate Document Options........................................................................................... 7-3Additional AutoCreate Features..........................................................................................7-7Oracle iProcurement Requisitions....................................................................................... 7-8

Finding Requisition Lines for AutoCreate............................................................................... 7-9Selecting AutoCreate Criteria................................................................................................. 7-12Entering Document Information and Completing AutoCreate............................................. 7-16Using the Document Builder.................................................................................................. 7-18Modifying Requisition Lines..................................................................................................7-20

8 Defaulting Rules

Defaulting Rules in Purchase Orders and Agreements Created Using PDOI, BWC, andAutoCreate.................................................................................................................................8-1

9 Professional Buyer's Work Center

Buyer's Work Center Overview................................................................................................ 9-1Entering Preferences for Buyer Work Center Purchasing Documents.................................... 9-4Using the Demand Workbench: Requisitions........................................................................9-13Requisitions: Demand Workbench.........................................................................................9-14Purchase Orders...................................................................................................................... 9-24Finding Standard Purchase Orders.........................................................................................9-24Entering Purchase Order Information.................................................................................... 9-27Modifying Encumbered Documents Without Unreserving in Buyer Work Center..............9-36Withdrawing Purchase Orders in Buyer Work Center...........................................................9-43Purchase Agreements.............................................................................................................. 9-44Finding Agreements................................................................................................................9-45

ix

Create And Update Agreements............................................................................................. 9-46Pricing Transparency for Standard PO and Global Blanket Purchase Agreement............... 9-52Creating and Managing Initiatives and Negotiations............................................................9-61Related Contracts.....................................................................................................................9-62

10 Communication With Suppliers

Overview of Supplier Communication.................................................................................. 10-1Printed Purchase Orders Overview................................................................................... 10-3

Communication Methods..................................................................................................... 10-22

11 Using Supplier Scheduling in Oracle Purchasing

Overview ................................................................................................................................ 11-1Inputs from Oracle Planning and Oracle Purchasing............................................................ 11-3Overview of Scheduler's Workbench..................................................................................... 11-8Managing Schedules............................................................................................................. 11-20AutoScheduling.....................................................................................................................11-22CUM Management................................................................................................................ 11-25Other Topics.......................................................................................................................... 11-28

12 Receiving

Overview of Receiving............................................................................................................12-1Centralized Purchasing for Multiple Receiving Organizations......................................... 12-5Receiving Locations........................................................................................................... 12-6Movement Statistics...........................................................................................................12-6Receiving Controls, Options, and Profiles......................................................................... 12-7Receipt Tolerances........................................................................................................... 12-12Return Material Authorizations (RMAs)......................................................................... 12-13Debit Memos....................................................................................................................12-14Drop Shipment Receipts.................................................................................................. 12-15Receiving Open Interface.................................................................................................12-15Serial Tagging During Picking.........................................................................................12-16

Advance Shipment Notices (ASNs)......................................................................................12-16Managing Receipts................................................................................................................12-22

Multiple Distributions..................................................................................................... 12-23Cascading Receipts and Receiving Transactions..............................................................12-24Express Receipts and Receiving Transactions..................................................................12-24Entering Express Receipts................................................................................................12-26Finding Expected Receipts...............................................................................................12-26Entering Receipt Header Information..............................................................................12-30Entering Receipt Lines..................................................................................................... 12-31

x

Unordered Receipts...............................................................................................................12-35Entering Unordered Receipts...........................................................................................12-37Matching Unordered Receipts......................................................................................... 12-37

Receiving Transactions......................................................................................................... 12-38Finding Receiving Transactions (Summary).................................................................... 12-41Using the Receiving Headers Summary Window............................................................12-44Using the Receiving Transaction Summary Window...................................................... 12-45Viewing Accounting Lines...............................................................................................12-46Using the Receipt Header Details Window..................................................................... 12-49Finding Transaction Status Information.......................................................................... 12-50Viewing Transaction Status Information......................................................................... 12-54Finding Receiving Transactions.......................................................................................12-56Entering Receiving Transactions......................................................................................12-59Drilling Down to Purchasing from Oracle General Ledger............................................. 12-62

Inspections.............................................................................................................................12-64Inspecting Received Items............................................................................................... 12-66

Returns...................................................................................................................................12-67Finding Returns............................................................................................................... 12-68Entering Returns..............................................................................................................12-71

Return to Vendor Transactions.............................................................................................12-73Corrections.............................................................................................................................12-84

Finding Corrections......................................................................................................... 12-85Entering Corrections........................................................................................................12-89

Finding Intransit Shipments.................................................................................................12-91Managing Shipments....................................................................................................... 12-92

Control Numbers...................................................................................................................12-95Receiving Reports..................................................................................................................12-97Overview of Receipt Accounting..........................................................................................12-98

Setting Up Inventory Accruals.......................................................................................12-101Accrual Process for Perpetual Accruals......................................................................... 12-106Monitoring Price Variances............................................................................................12-113Reconciling AP Accrual Accounts Balance.................................................................... 12-113Accrual Process for Period-End Accruals...................................................................... 12-115Identifying Journal Entry Batches in General Ledger.................................................... 12-120Accrual Write Off...........................................................................................................12-123

Automatic Offsets in Oracle Purchasing............................................................................ 12-132Defining Purchase Order Receipt Accruals....................................................................12-132

Integration with Landed Cost Management.......................................................................12-133Receiving HTML UI............................................................................................................ 12-135

xi

13 Inquiries

Viewing Action History.......................................................................................................... 13-1Viewing Purchase Order Changes..........................................................................................13-3

14 Reports

Accrual Write-Off Report........................................................................................................14-1Advanced Shipment Notice Discrepant Receipts Report...................................................... 14-3AP and PO Accrual Reconciliation Report............................................................................. 14-4Backordered Internal Requisitions Report.............................................................................14-6Blanket and Planned PO Status Report.................................................................................. 14-7Buyer Listing........................................................................................................................... 14-8Buyer's Requisition Action Required Report.........................................................................14-9Cancelled Purchase Orders Report....................................................................................... 14-11Cancelled Requisitions Report............................................................................................. 14-11Contract Status Report.......................................................................................................... 14-12Country of Origin Report (by Item)......................................................................................14-13Country of Origin Report (by Supplier)...............................................................................14-14CUM History Report ............................................................................................................ 14-15Encumbrance Detail Report.................................................................................................. 14-16Expected Receipts Report......................................................................................................14-18Financials/Purchasing Options Listing.................................................................................14-20Internal Requisition Status Report....................................................................................... 14-20Internal Requisitions/Deliveries Discrepancy Report......................................................... 14-21Invoice Price Variance Report...............................................................................................14-22Invoice Price Variance by Supplier Report.......................................................................... 14-23Item Detail Listing................................................................................................................ 14-24Item Summary Listing...........................................................................................................14-26Location Listing.....................................................................................................................14-26Matching Holds by Buyer Report......................................................................................... 14-27Miscellaneous Accrual Reconciliation Report......................................................................14-29New Supplier Letter Report..................................................................................................14-31Open Purchase Orders Report (by Buyer)............................................................................ 14-32Open Purchase Orders Report (by Cost Center)...................................................................14-33Overdue Supplier Shipments Report................................................................................... 14-34Overshipments Report.......................................................................................................... 14-35Printed Change Orders Report (Landscape).........................................................................14-36Printed Planning Schedule Report....................................................................................... 14-38Printed Change Orders Report (Portrait)..............................................................................14-39Printed Purchase Order Report (Landscape)........................................................................ 14-41

xii

Printed Purchase Order Report (Portrait)............................................................................. 14-43Printed RFQ Report (Landscape).......................................................................................... 14-46Printed RFQ Report (Portrait)............................................................................................... 14-47Printed Requisitions Report................................................................................................. 14-48Printed Shipping Schedule Report ...................................................................................... 14-49Purchase Agreement Audit Report....................................................................................... 14-50Purchase Order Commitment by Period Report...................................................................14-51Purchase Order Detail Report...............................................................................................14-52Purchase Order Distribution Detail Report......................................................................... 14-53Purchase Order and Releases Detail Report.........................................................................14-55Purchase Price Variance Report............................................................................................ 14-55Purchase Requisition Status Report..................................................................................... 14-57Purchase Summary Report by Category............................................................................... 14-58Purchasing Activity Register.................................................................................................14-59Purchasing Interface Errors Report.......................................................................................14-60Purge Purchasing Open Interface Processed Data............................................................... 14-61Quality Code Listing............................................................................................................. 14-62Quotation Action Required Report.......................................................................................14-63Receipt Adjustments Report................................................................................................. 14-64Receipt Traveler.................................................................................................................... 14-65Receiving Account Distribution Report............................................................................... 14-66Receiving Exceptions Report................................................................................................ 14-68Receiving Interface Errors Report.........................................................................................14-70Receiving Transactions Register...........................................................................................14-70Receiving Value Report........................................................................................................ 14-72Receiving Value Report by Destination Account.................................................................14-75ReqExpress Templates Listing..............................................................................................14-76Requisition Activity Register................................................................................................14-77Requisition Distribution Detail Report................................................................................14-77Requisition Import Exceptions Report................................................................................. 14-78Requisitions on Cancelled Sales Order Report.................................................................... 14-79RFQ Action Required Report................................................................................................14-80Savings Analysis Report (by Buyer)..................................................................................... 14-81Savings Analysis Report (by Category)................................................................................ 14-82Standard Notes Listing..........................................................................................................14-83Substitute Receipts Report....................................................................................................14-83Summary Accrual Reconciliation Report............................................................................. 14-84Supplier Affiliated Structure Listing....................................................................................14-86Supplier Price Performance Analysis Report....................................................................... 14-86Supplier Purchase Summary Report.....................................................................................14-87Supplier Quality Performance Analysis Report...................................................................14-89

xiii

Supplier Service Performance Analysis Report................................................................... 14-90Supplier Volume Analysis Report........................................................................................14-91Suppliers on Hold Report..................................................................................................... 14-92Uninvoiced Receipts Report................................................................................................. 14-93Unit of Measure Class Listing...............................................................................................14-94Unit of Measure Listing........................................................................................................ 14-95Unordered Receipts Report...................................................................................................14-96Oracle Business Intelligence Publisher (BI Publisher) Purchasing Reports....................... 14-97

15 Integration with Other Applications

Integration for Engineering and Construction Industry........................................................15-1Landed Cost Management...................................................................................................... 15-4Pricing Transparency.............................................................................................................. 15-6Integration with Oracle Process Manufacturing - Outside Processing (OPM-OSP) ............ 15-7

16 Processes

Accrual Load............................................................................................................................16-1ASL Upgrade Process.............................................................................................................. 16-2Confirm Receipts Workflow Select Orders Process............................................................... 16-3Create Internal Sales Orders Process...................................................................................... 16-4Create Releases Process...........................................................................................................16-5Create Standard Purchase Orders Process.............................................................................. 16-6Fill Employee Hierarchy Process............................................................................................ 16-7Generate Sourcing Rules And ASLs From Blanket Agreements........................................... 16-8Import Price Catalog..............................................................................................................16-10Import Standard Purchase Orders........................................................................................ 16-13Import Contract Purchase Agreements.................................................................................16-15Mass Update of Purchasing Documents...............................................................................16-16Mass Update of Requisitions................................................................................................16-18Mass Close of Purchasing Documents..................................................................................16-20Payment on Receipt...............................................................................................................16-20Planning and Shipping AutoSchedule Processes ................................................................16-27PO Output for Communication............................................................................................ 16-29Purchasing Database Administration...................................................................................16-31Using Import Processes in Oracle Purchasing......................................................................16-32Receipt Accruals - Period-End Process................................................................................. 16-32Receiving Transaction Processor.......................................................................................... 16-35Requisition Import Process...................................................................................................16-36Reset Period End Accrual Flags............................................................................................ 16-40Reschedule Requisitions Process..........................................................................................16-40

xiv

Retrieve Time from Oracle Time and Labor (OTL)..............................................................16-41Retroactive Price Update on Purchasing Documents........................................................... 16-41Send Notifications for Purchasing Documents.................................................................... 16-44

A Windows and Navigator Paths

Oracle Purchasing Windows and Navigator Paths.................................................................. A-1

B Oracle Purchasing Alerts

Using Oracle Alert in Oracle Purchasing................................................................................. B-1Predefined Purchasing Alerts..............................................................................................B-2

C Oracle Purchasing Profile Options and Profile Option Categories

Profile Options and Profile Option Categories Overview...................................................... C-1Profile Option Category and Profile Options Descriptions.................................................... C-6

D Function Security for Purchasing

Function Security for Purchasing.............................................................................................D-1

E Procurement Workflows

Overview of Procurement Workflows..................................................................................... E-1Customization Guidelines........................................................................................................E-2Using the Account Generator in Oracle Purchasing................................................................ E-6

Decide How to Use the Account Generator.........................................................................E-7What the Account Generator Does in Oracle Purchasing ...................................................E-9Customizing the Account Generator for Oracle Purchasing............................................. E-25The Default Account Generator Processes for Oracle Purchasing.....................................E-31Summary of the Generate Default Accounts Process........................................................ E-38Generate Default Accounts Process Activities...................................................................E-40Summary of the Generate Default Accrual Account Subprocess.......................................E-44Summary of the Generate Default Budget Account Subprocess....................................... E-44Summary of the Generate Default Charge Account Subprocess....................................... E-45Summary of the Generate Default Variance Account Subprocess.....................................E-45Summary of the Build Expense Charge Account Subprocess............................................E-46Summary of the Build Inventory Charge Account Subprocess......................................... E-46Summary of the Build Shop Floor Charge Account Subprocess........................................E-47Summary of the Build Inventory Budget Account Subprocess......................................... E-47Summary of the Build Project Account Subprocesses....................................................... E-48Summary of the Get Charge Account for Variance Account Subprocess.......................... E-49Summary of the Get Variance Account from Organization Subprocess............................E-49

xv

Summary of the Generate Accounts Using FlexBuilder Rules Process..............................E-50Using the Workflow Monitor with the Account Generator...............................................E-50

Requisition Approval Workflow............................................................................................E-51Customizing the PO Requisition Approval Workflow......................................................E-52The PO Requisition Approval Workflow Item Type......................................................... E-57Summary of the Main Requisition Approval Process........................................................E-63Main Requisition Approval Process Activities.................................................................. E-65Summary of the Start of Approve Requisition Process......................................................E-68Start of Approve Requisition Process Activities................................................................E-69Summary of the Verify Requisition Subprocess................................................................ E-70Verify Requisition Subprocess Activities...........................................................................E-71Summary of the Reserve At The Start Subprocess.............................................................E-72Reserve At The Start Subprocess Activities....................................................................... E-72Summary of the Verify Approval Authority Subprocess.................................................. E-73Verify Approval Authority Subprocess Activities.............................................................E-74Summary of the Approval List Routing Subprocess......................................................... E-75Approval List Routing Subprocess Activities....................................................................E-75Summary of the Reject Requisition Subprocess.................................................................E-76Reject Requisition Subprocess Activities........................................................................... E-77Summary of the Return Requisition to Submitter Subprocess...........................................E-78Return Requisition to Submitter Subprocess Activities.....................................................E-78Summary of the Notify Approver Subprocess.................................................................. E-79Notify Approver Subprocess Activities.............................................................................E-80Summary of the Response with Approve Action Subprocess........................................... E-81Response with Approve Action Subprocess Activities......................................................E-81Summary of the Response with Approve and Forward Action Subprocess......................E-82Response with Approve and Forward Action Subprocess Activities................................E-82Summary of the Response with Forward Action Subprocess............................................E-83Response with Forward Action Subprocess Activities...................................................... E-84Summary of the Response with Reject Action Subprocess................................................ E-84Response with Reject Action Subprocess Activities.......................................................... E-84Summary of the Reserve Before Approve Subprocess...................................................... E-84Reserve Before Approve Subprocess Activities.................................................................E-85Summary of the Approve Requisition Subprocess............................................................E-86Approve Requisition Subprocess Activities...................................................................... E-87Summary of the Print Document Subprocess....................................................................E-88Print Document Subprocess Activities.............................................................................. E-89Summary of the Verify Approval Authority for Approve and Approve/Forward ActionSubprocesses..................................................................................................................... E-89Verify Approval Authority Subprocess Activities.............................................................E-90

Purchase Order Approval Workflow..................................................................................... E-90

xvi

Customizing the PO Approval Workflow.........................................................................E-91The PO Approval Item Type............................................................................................. E-96Summary of the PO Approval Top Process.....................................................................E-104PO Approval Top Process Activities............................................................................... E-105PO AME Approval Top Process Activities......................................................................E-109Summary of the PO Approval Process............................................................................ E-113PO Approval Process Activities...................................................................................... E-114Summary of the Verify PO Subprocess........................................................................... E-117Verify PO Subprocess Activities......................................................................................E-118Summary of the Reserve Before Approve Subprocess.................................................... E-119Reserve Before Approve Subprocess Activities...............................................................E-120Summary of the Verify Approval Authority Subprocess................................................ E-121Verify Approval Authority Subprocess Activities...........................................................E-122Summary of the Approve PO Subprocess....................................................................... E-122Approve PO Subprocess Activities..................................................................................E-123Summary of the Print, Fax, and Email Document Subprocesses..................................... E-125Print, Fax, and Email Document Subprocess Activities...................................................E-126Summary of the Approve and Forward PO Subprocess................................................. E-126Approve and Forward PO Subprocess Activities............................................................E-127Summary of the Notify Approver Subprocess................................................................ E-129Notify Approver Subprocess Activities...........................................................................E-130Summary of the Find Approver Subprocess................................................................... E-131Find Approver Subprocess Activities..............................................................................E-132Summary of the Forward PO Subprocess........................................................................E-133Forward PO Subprocess Activities.................................................................................. E-134Summary of the Return PO to Submitter Subprocess......................................................E-135Return PO to Submitter Subprocess Activities................................................................ E-136Summary of the Reject PO Subprocess............................................................................E-137Reject PO Subprocess Activities...................................................................................... E-137Change Order Process Activities..................................................................................... E-138

Workflow Processes for Approving Change Orders............................................................E-138Customizing the Change Order Workflow..................................................................... E-139The Change Order Workflow Item Attributes.................................................................E-142Summary of the Get All Document Changes Subprocess................................................E-153Get All Document Changes Subprocess Activities.......................................................... E-153Summary of the Get All Blanket PO Changes Subprocess.............................................. E-155Get All Blanket PO Changes Subprocess Activities.........................................................E-155Summary of the Get All Contract PO Changes Subprocess.............................................E-156Get All Contract PO Changes Subprocess Activities....................................................... E-156Summary of the Get All Planned PO Changes Subprocess............................................. E-156Get All Planned PO Changes Subprocess Activities........................................................E-157

xvii

Summary of the Get All Release Changes Subprocess.................................................... E-158Get All Release Changes Subprocess Activities...............................................................E-158Summary of the Get All Standard PO Changes Subprocess............................................E-159Get All Standard PO Changes Subprocess Activities...................................................... E-159Summary of the Do Document Changes Require Reapproval? Subprocess....................E-160Do Document Changes Require Reapproval? Subprocess Activities.............................. E-160Summary of the Change Order Reserve Before Approve Subprocess.............................E-161Change Order Reserve Before Approve Subprocess Activities....................................... E-162Summary of the Approve PO (Change Order) Subprocess............................................. E-163Approve PO (Change Order) Subprocess Activities........................................................E-164Summary of the Print and Fax Document Processes (Change Order)............................. E-166Print and Fax Document Process (Change Order) Activities...........................................E-167

Workflow for Creating Purchase Orders and Releases....................................................... E-167Customizing the Automatic Document Creation Workflow........................................... E-168The PO Create Documents Item Type............................................................................. E-173Summary of Overall Document Creation / Launch Approval Process............................E-177Overall Document Creation / Launch Approval Process Activities................................ E-178Summary of the Verify Req Line Information Process.................................................... E-180Verify Req Line Information Process Activities...............................................................E-182Summary of the Does Req Line Have Enough Information To Automatically Create ADocument? Process..........................................................................................................E-184Does Req Line Have Enough Information To Automatically Create A Document? ProcessActivities..........................................................................................................................E-184Summary of the Create and Approve Purchase Order Or Release Process.....................E-185Create And Approve Purchase Order Or Release Process Activities.............................. E-186Summary of the Get Buyer Subprocess........................................................................... E-187Get Buyer Subprocess Activities......................................................................................E-187Using the Workflow Monitor for the PO Create Documents Workflow..........................E-188

Confirm Receipts Workflow.................................................................................................E-190Customizing the Confirm Receipts Workflow.................................................................E-190The Confirm Receipts Workflow Item Type....................................................................E-194Summary of the Confirm Receipt Process....................................................................... E-197Confirm Receipt Process Activities..................................................................................E-198Summary of the Notify Requester Subprocess................................................................ E-200Notify Requester Subprocess Activities...........................................................................E-200

PO Send Notifications Workflow........................................................................................ E-201Customizing the PO Send Notifications for Purchasing Documents Workflow..............E-201The PO Send Notifications for Purchasing Documents Item Type..................................E-205Summary of the PO Document Approval Reminder Process..........................................E-208PO Document Approval Reminder Process Activities.................................................... E-209

Price/Sales Catalog Notification Workflow......................................................................... E-212

xviii

Customizing the Issue Notifications Process...................................................................E-214The PO Catalog Price Tolerances Exceeded Notifications Item Type..............................E-216Summary of the Issue Notifications Process....................................................................E-216Issue Notifications Process Activities.............................................................................. E-217

Debit Memo Notification Workflow....................................................................................E-218Customizing the Debit Memo Notification Workflow.................................................... E-218The PO Debit Memo Notification Item Type...................................................................E-220Summary of the Debit Memo Process............................................................................. E-221

Process Navigator Workflows.............................................................................................. E-222PO Approval Error Workflow.............................................................................................. E-223

Customizing the PO Approval Error Workflow..............................................................E-224The PO Approval Error Item Type..................................................................................E-227Summary of PO Approval Error Workflow.................................................................... E-227

F 21 CFR Part 11 Compliance: Oracle E-Records

21 CFR Part 11 Overview...........................................................................................................F-1E-records and E-signatures for Oracle Purchasing...................................................................F-2Viewing Oracle E-Records and E-Signatures........................................................................... F-3

G Setting up Planned Orders for Supplier Scheduling

Setting up Planned Orders.......................................................................................................G-1

GLOSSARY

xix

Send Us Your Comments

Oracle Purchasing User's Guide, Release 12.2

Part No. E48931-07

Oracle welcomes customers' comments and suggestions on the quality and usefulness of this document. Your feedback is important, and helps us to best meet your needs as a user of our products. For example:

Are the implementation steps correct and complete? Did you understand the context of the procedures? Did you find any errors in the information? Does the structure of the information help you with your tasks? Do you need different information or graphics? If so, where, and in what format? Are the examples correct? Do you need more examples?

If you find any errors or have any other suggestions for improvement, then please tell us your name, the name of the company who has licensed our products, the title and part number of the documentation andthe chapter, section, and page number (if available).

Note: Before sending us your comments, you might like to check that you have the latest version of the document and if any concerns are already addressed. To do this, access the new Oracle E-Business Suite Release Online Documentation CD available on My Oracle Support and www.oracle.com. It contains the most current Documentation Library plus all documents revised or released recently.

Send your comments to us using the electronic mail address: appsdoc_us@oracle.com

Please give your name, address, electronic mail address, and telephone number (optional).

If you need assistance with Oracle software, then please contact your support representative or Oracle Support Services.

If you require training or instruction in using Oracle software, then please contact your Oracle local officeand inquire about our Oracle University offerings. A list of Oracle offices is available on our Web site at www.oracle.com.

xxi

Preface

Intended AudienceWelcome to Release 12.2 of the Oracle Purchasing User's Guide.

This guide contains the information needed to implement and use Oracle Purchasing.

See Related Information Sources on page xxii for more Oracle E-Business Suite product information.

Documentation AccessibilityFor information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website at http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc.

Access to Oracle SupportOracle customers that have purchased support have access to electronic support through My Oracle Support. For information, visit http://www.oracle.com/pls/topic/lookup?ctx=acc&id=info or visit http://www.oracle.com/pls/topic/lookup?ctx=acc&id=trs if you are hearing impaired.

Structure1 Setting Up2 Approval, Security, and Control3 Oracle Approvals Management (AME) for Purchase Order Review, Approval, and Multiple E-Signatures4 Requisitions5 Purchase Orders6 Supply Base Management7 AutoCreate

http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacchttp://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc

xxii

8 Defaulting Rules9 Professional Buyer's Work Center10 Communication With Suppliers11 Using Supplier Scheduling in Oracle Purchasing 12 Receiving13 Inquiries14 Reports15 Integration with Other Applications16 ProcessesA Windows and Navigator PathsB Oracle Purchasing AlertsC Oracle Purchasing Profile Options and Profile Option CategoriesD Function Security for PurchasingE Procurement WorkflowsF 21 CFR Part 11 Compliance: Oracle E-RecordsG Setting up Planned Orders for Supplier SchedulingGLOSSARY

Related Information SourcesYou can choose from many sources of information, including online documentation, training, and support services, to increase your knowledge and understanding of OraclePurchasing.

Warning: This guide includes information about many features of Oracle Applications other than Oracle Purchasing. These other Oracle Applications may require separate licenses, and must be fully installed to take advantage of their features.

Online Documentation

All Oracle Applications documentation is available online (HTML or PDF).

Online Help Online help patches (HTML) are available on My Oracle Support.

PDF (Softcopy Guides) - Adobe Acrobat PDF versions of all Oracle Applications guides are available on My Oracle Support..

Oracle eBusiness Suite Electronic Technical Reference Manuals - Each Electronic Technical Reference Manual (eTRM) contains database diagrams and a detailed description of database tables, forms, reports, and programs for a specific Oracle Applications product. This information helps you convert data from your existing applications and integrate Oracle Applications data with non-Oracle applications, and write custom reports for Oracle Applications products. Oracle eTRM is available on My Oracle Support.

Related Documentation

Oracle E-Business Suite User's Guide

xxiii

This guide explains how to navigate, enter and query data, and run concurrent requestsusing the user interface (UI) of Oracle E-Business Suite. It includes information on setting preferences and customizing the UI. In addition, this guide describes accessibility features and keyboard shortcuts for Oracle E-Business Suite.

Other related guides:

Multiple Organizations in Oracle Applications

Oracle Advanced Pricing User's Guide

Oracle Bills of Material User's Guide

Oracle Cost Management User's Guide

Oracle General Ledger User Guide

Oracle HRMS Documentation Set: This documentation set includes the following volumes: Oracle HRMS Compensation and Benefits Management Guide, Oracle HRMS Configuring, Reporting, and System Administration Guide, Oracle HRMS Enterprise and Workforce Management Guide, Oracle HRMS Implementation Guide, Oracle HRMS Payroll Processing Management Guide, and Oracle HRMS Workforce Sourcing, Deployment, and Talent Management Guide

Oracle Inventory User's Guide

Oracle Order Management User's Guide

Oracle Payables User's Guide

Oracle Procurement Contracts Online Help

Oracle Projects Documentation Set: This documentation set includes the following volumes: Oracle Project Billing User Guide, Oracle Project Costing User Guide, Oracle Projects Fundamentals User Guide, Oracle Project Planning and Control User Guide, Oracle Project Resource Management User Guide, Oracle Projects Implementation Guide, and Oracle Projects APIs, Client Extensions, and Open Interfaces Reference.

Oracle Quality User's Guide

Oracle Receivables User's Guide

Oracle E-Business Suite Flexfields Guide

Oracle eCommerce Gateway User's Guide

Oracle E-Business Suite Integrated SOA Gateway Documentation Set

Oracle Manufacturing APIs and Open Interfaces Manual

Oracle Order Management Open Interfaces, API, & Electronic Messaging Guide

Oracle Procurement Contracts Implementation and Administration Guide

Oracle Contracts Implementation and Administration Guide

Oracle Workflow Administrator's Guide

Oracle Workflow Developer's Guide

xxiv

Integration Repository The Oracle Integration Repository is a compilation of information about the service endpoints exposed by the Oracle E-Business Suite of applications. It provides a complete catalog of Oracle E-Business Suite's business service interfaces. The tool lets users easily discover and deploy the appropriate business service interface for integration with any system, application, or business partner.

The Oracle Integration Repository is shipped as part of the Oracle E-Business Suite. As your instance is patched, the repository is automatically updated with content appropriate for the precise revisions of interfaces in your environment.

Do Not Use Database Tools to Modify Oracle E-Business Suite DataOracle STRONGLY RECOMMENDS that you never use SQL*Plus, Oracle Data Browser, database triggers, or any other tool to modify Oracle E-Business Suite data unless otherwise instructed.

Oracle provides powerful tools you can use to create, store, change, retrieve, and maintain information in an Oracle database. But if you use Oracle tools such as SQL*Plus to modify Oracle E-Business Suite data, you risk destroying the integrity of your data and you lose the ability to audit changes to your data.

Because Oracle E-Business Suite tables are interrelated, any change you make using an Oracle E-Business Suite form can update many tables at once. But when you modify Oracle E-Business Suite data using anything other than Oracle E-Business Suite, you may change a row in one table without making corresponding changes in related tables.If your tables get out of synchronization with each other, you risk retrieving erroneous information and you risk unpredictable results throughout Oracle E-Business Suite.

When you use Oracle E-Business Suite to modify your data, Oracle E-Business Suite automatically checks that your changes are valid. Oracle E-Business Suite also keeps track of who changes information. If you enter information into database tables using database tools, you may store invalid information. You also lose the ability to track whohas changed your information because SQL*Plus and other database tools do not keep arecord of changes.

Setting Up 1-1

1Setting Up

Overview of Setting UpThis section contains an overview of each step you need to complete to set up Oracle Purchasing. For instructions on how to complete each task, see the setup sections indicated in each step.

Multiple Reporting Currencies:If you plan to use Multiple Reporting Currencies (MRC) with Oracle Purchasing, additional setup steps are required. See: Multiple Reporting Currencies in Oracle Applications.

Setup Checklist :Some of the steps outlined in the setup checklist are Required, and some are Optional. Required Step With Defaults means that the setup functionality comes with pre-seeded, default values in the database; however, you should review those defaults and decide whether to change them to suit your business needs. If you want or need to change them, you should perform that setup step. You need to perform Optional steps only if you plan to use the related feature or complete certain business functions.

You need not perform some of the setup steps if you've already performed a common-application setup (setting up multiple Oracle Applications products).

The following table lists setup steps and a reference to their Oracle Application. After you log on to Oracle Applications, complete these steps to implement Purchasing:

Step No. Required Step Application

Step 1 Required Set Up System Administrator Common Applications

1-2 Oracle Purchasing User's Guide

Step No. Required Step Application

Step 2 Required Define Accounting Key Flexfields Common Applications

Step 3 Required Set Up Calendars, Currencies, and Ledgers

Common Applications

Step 4 Required Define Human Resources Key Flexfields

Common Applications

Step 5 Required Define Locations Human Resources

Step 6 Required Define Organizations and Organization Relationships

Human Resources

Step 7 Required Convert to a Multi-Org Architecture Common Applications

Step 8 Required Define Inventory Key Flexfields Common Applications

Step 9 Required Define Units of Measure Oracle Inventory

Step 10 Optional Define Freight Carriers Oracle Inventory

Step 11 Required Step with Defaults

Define Item Attributes, Codes, and Templates

Oracle Inventory

Step 12 Required Define Categories Oracle Inventory

Step 13 Optional Define Catalog Groups Oracle Inventory

Step 14 Required Set Up Personnel Human Resources

Step 15 Required Set Up Oracle Workflow Common Applications

Step 16 Required Decide How to Use the Account Generator

Oracle Purchasing

Step 17 Required Define Financial Options Oracle Payables

Setting Up 1-3

Step No. Required Step Application

Step 18 Optional Define Subinventory Locations Oracle Inventory

Step 19 Optional Set Up Encumbrance Accounting forPurchase Orders with Shop Floor Destination Type

Oracle Enterprise Asset Management

Step 20 Optional Define Cross-Reference Types Oracle Purchasing

Step 21 Optional Define Taxes Oracle E-Business Tax

Step 22 Optional Define Payment Terms Oracle Payables

Step 23 Required Set Up Approval Information Oracle Purchasing

Step 24 Required Step with Defaults

Define Lookups and Classes Oracle Purchasing

Step 25 Optional Define Standard Attachments Oracle Purchasing

Step 26 Required Define Buyers Oracle Purchasing

Step 27 Optional Define Items Oracle Purchasing

Step 28 Required Step with Defaults

Define Line Types Oracle Purchasing

Step 29 Required Start the Purchasing Database Administrator

Oracle Purchasing

Step 30 Optional Define Transaction Reasons Oracle Purchasing

Step 31 Required Define Purchasing Options Oracle Purchasing

Step 32 Required Define Receiving Options Oracle Purchasing

Step 33 Required Set Up Transaction Managers and Resubmission Intervals

Oracle Purchasing

Step 34 Required Define Suppliers Oracle Payables

1-4 Oracle Purchasing User's Guide

Step No. Required Step Application

Step 35 Required Step with Defaults

Set Up Workflow Options Oracle Purchasing

Step 36 Required Submit Workflow-related Processes Oracle Purchasing

Step 37 Optional Define Descriptive Flexfields Common Applications

Step 38 Optional Set Up Automatic Sourcing Oracle Purchasing

Step 39 Required Open Inventory and Purchasing Accounting Periods

Oracle Purchasing

Step 40 Required Perform Additional System Administrator Setup

Common Applications

Step 41 Required Define Manufacturing System and User Profiles

Oracle Purchasing

Setup Steps:For those steps that are affected, a Context section indicates whether you need to repeat the step for each ledger, set of tasks, inventory organization, HR organization, or other operating unit under Multiple Organizations.

Step 1: Set Up System AdministratorThis step involves the following tasks:

Create a super user to use as a logon name during setup and assign the super user the required setup responsibilities. Typically, the required responsibilities are as follows (Required):

Purchasing

System Administrator

Set up printers. Although you do not have to set up all of your printers now, it may be useful to set up one printer if you wish to print anything during setup. (Optional)

See:Oracle E-Business Suite Setup Guide.

Setting Up 1-5

Step 2: Define Accounting Key Flexfields (Required)Define Accounting key flexfields and cross validation rules. You may not need to perform this step if you have already installed and set up Oracle General Ledger or performed a common-applications setup. See: Designing Your Accounting Flexfield, Oracle General Ledger Implementation Guide.

Important: If you are, or will be, fully installing other Oracle applications, be sure to coordinate with those products' flexfield setup before defining the key flexfields here, as it is not recommended to change flexfields after you acquire any flexfields data.

For instructions on how to set up key flexfields, see: Planning and Defining Key Flexfields, Oracle Applications Flexfields Guide.

Step 3: Set Up Calendars, Currencies, and Ledgers (Required)If you have defined your calendars, currencies, and ledgers while setting up a different Oracle Applications product, proceed to the next step.

Context: If you are performing a Multi-Org implementation of Purchasing, you may optionally create more than one calendar, currency, or ledgers. See: Multiple Organizations in Oracle Applications.

This step involves the following tasks:

Set up calendars:

Define period types. See: Defining Period Types, Oracle General Ledger User's Guide.

Define accounting calendar. See: Defining Calendars, Oracle General Ledger User's Guide.

Note: You can define the following three optional items if you install certain Oracle Manufacturing applications.

Define transaction calendar. See: Defining Transaction Calendars, Oracle GeneralLedger Implementation Guide. (Optional