student guide1
TRANSCRIPT
Oracle Internal & OAI Use Only
11i Purchasing for End Users Student Guide • Volume 1
D16657GC10
Edition 1.0
April 2003
D37959
Oracle Internal & OAI Use Only
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
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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
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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
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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
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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
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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
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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
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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
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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
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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]
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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
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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.
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Procure to Pay Purchasing Overview Chapter 1 - Page 1
Procure to Pay Purchasing Overview Chapter 1
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Procure to Pay Purchasing Overview Chapter 1 - Page 2
Procure to Pay Purchasing Overview
Procure to Pay Purchasing Overview
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Procure to Pay Purchasing Overview Chapter 1 - Page 3
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
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Procure to Pay Purchasing Overview Chapter 1 - Page 4
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
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Agenda
Agenda
• Understand the Purchasing process• Understand Purchasing integration points• Understand Purchasing open interfaces
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Overview of Purchasing Process
Overview of Purchasing Process
CreateRequisition
AutoCreate
Purchasing Document
Send to Supplier
Receive Goods
ApproveRequisition
ApprovePO Document
Overview of Purchasing Process
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.
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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.
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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
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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.
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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.
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Procure to Pay Purchasing Overview Chapter 1 - Page 11
• 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.
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Procure to Pay Purchasing Overview Chapter 1 - Page 12
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
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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.
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• 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.
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Agenda
Agenda
• Understand the Purchasing process• Understand Purchasing integration points• Understand Purchasing open interfaces
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Overview of Purchasing Integration
Overview of Purchasing Integration
CashManagement
Purchasing/ iProcurement
Projects
Payables
General Ledger
e-Commerce Gateway
ASCP/MRP
Overview of Purchasing Integration
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
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Procure to Pay Purchasing Overview Chapter 1 - Page 17
• 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
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Overview of Purchasing Integration
Overview of Purchasing Integration
Workflow Inventory
QualityHumanResources
Alert
A+
Purchasing/ iProcurement
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
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Procure to Pay Purchasing Overview Chapter 1 - Page 19
• 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
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Procure to Pay Purchasing Overview Chapter 1 - Page 20
Overview of Purchasing Integration
Overview of Purchasing Integration
Assets Order Management
Purchasing/ iProcurement
WIP
Overview of Purchasing Integration (continued)
Assets • Suppliers
WIP • Receipts • Requisitions generated from outside processing
Order Management • Internal requisitions • Demand • Drop shipments
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Purchasing Integration with General Ledger
Purchasing Integration with General Ledger
Receipt Accruals
Journal Import1 2
GeneralLedger
GL InterfacePurchasing/ iProcurement
RatesSet of Books
Purchasing Integration with General Ledger
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.
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Purchasing Integration with Payables
Purchasing Integration with Payables
Payables
1
2
Match and Update Qty
Billed
Copy Accounting
POs PCardsSuppliers
Purchasing/ iProcurement
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.
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Purchasing Integration with Cash Management
Purchasing Integration with Cash Management
CashManagement
Purchasing/ iProcurement
Purchasing Integration with Cash Management
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.
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Purchasing Integration with Projects
Purchasing Integration with Projects
ProjectsPurchasing/ iProcurement
CommitmentsTasksProjects
Purchasing Integration with Projects
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.
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Purchasing Integration with ASCP/MRP
Purchasing Integration with ASCP/MRP
Run Requisition
Import
Release Planned Orders
3 2
Purchasing/ iProcurement
Requisition Interface
ASCP/MRP
Launch Planning
Processes1
Purchasing Integration with ASCP/MRP
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.
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Purchasing Integration with e-Commerce Gateway
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 Integration with e-Commerce Gateway
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).
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Purchasing Integration with Human Resources
Purchasing Integration with Human Resources
HumanResources
Purchasing/ iProcurement
HierarchiesOrganizationsLocationsEmployees
Purchasing Integration with Human Resources
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.
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Purchasing Integration with Quality
Purchasing Integration with Quality
Quality
A+
Purchasing/ iProcurement
ReceivingPlans
Purchasing Integration with Quality
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.
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Purchasing Integration with Inventory
Purchasing Integration with Inventory
Requisition Import
Min/Max Planning2 1
InventoryPurchasing/ iProcurement
Requisition Interface
ReceiptsItemsUOMsCategories
Purchasing Integration with Inventory
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.
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Purchasing Integration with Alert
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
Purchasing Integration with Alert
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
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Purchasing Integration with Workflow
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
Purchasing Integration with Workflow
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
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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.
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Purchasing Integration with iSupplier Portal
Purchasing Integration with iSupplier Portal
• View document information• Update system information• View receiving information• View and update planning information
Purchasing/ iProcurement
iSP
Purchasing Integration with iSupplier Portal
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
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Procure to Pay Purchasing Overview Chapter 1 - Page 34
• View and maintain order modifiers • Forecast shipment schedules • Search and view supplier items
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Procure to Pay Purchasing Overview Chapter 1 - Page 35
Purchasing Integration with Assets
Purchasing Integration with Assets
AssetsPurchasing/ iProcurement
SuppliersCategories
Purchasing Integration with Assets
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.
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Purchasing Integration with WIP
Purchasing Integration with WIP
Requisition Import
WIPPurchasing/ iProcurement
Requisition Interface
Interface Requisitions12
Purchasing Integration with WIP
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.
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Purchasing Integration with Order Management
Purchasing Integration with Order Management
Create Internal Sales
Orders1 2 Order Import
Order Management
Sales Orders Interface
Purchasing/ iProcurement
Receive
3
Purchasing Integration with Order Management
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.
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Procure to Pay Purchasing Overview Chapter 1 - Page 38
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
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Suppliers Chapter 2 - Page 1
Suppliers Chapter 2
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Suppliers Chapter 2 - Page 2
Suppliers
Suppliers
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Suppliers Chapter 2 - Page 3
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
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Suppliers Chapter 2 - Page 4
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
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Suppliers Chapter 2 - Page 5
Agenda
Agenda
• Describe overview of suppliers• Define supplier records• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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Suppliers Chapter 2 - Page 6
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.
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Suppliers Chapter 2 - Page 7
Overview of Suppliers
Overview of Suppliers
Enter supplier Enter invoice Approve invoice
Create accountingentries
Pay invoice
Create PO
Enter requisition
Match to PO
Overview of Suppliers
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.
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Suppliers Chapter 2 - Page 8
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.
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Agenda
Agenda
• Describe overview of suppliers• Define suppliers• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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Supplier Record Structure
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
Supplier Record Structure
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.
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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.
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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.
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Supplier Information - General Region
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
Supplier Information - General Region
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.
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Supplier Information - Classification Region
Supplier Information - Classification Region
YesDonationsAdams for Board
NoOffice SuppliesHal’s Supplies
One-Time?TypeName
Woman Owned Small Business
Minority-Owned
Supplier Information - Classification Region
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.
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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
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Supplier Information - Control Region
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
Supplier Information - Control Region
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
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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.
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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
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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.
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Supplier Information - Bank Accounts Region
Supplier Information - Bank Accounts Region
• Name• Number• Primary
Operating Account #432198-77
Supplier Information - Bank Accounts Region
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.
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Supplier Information - EDI Region
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
Supplier Information - EDI Region
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.
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Supplier Information - Invoice Tax Region
Supplier Information - Invoice Tax Region
• Invoice Tax Code• Use Offset Tax• Calculation Level• Allow Calculation Level Override• Rounding Rule• Distribution Amounts Include Tax
Supplier Information - Invoice Tax Region
For more information, refer to the Payables User Guide or to the 11i Procure to Pay Advanced Topic Global Taxes.
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Supplier Information - Withholding Tax Region
Supplier Information - Withholding Tax Region
• Allow Withholding Tax• Withholding Tax Group
Supplier Information - Withholding Tax Region
For more information, refer to the Payables User Guide or to the 11i Procure to Pay Advanced Topic Global Taxes.
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Supplier Information - Tax Reporting Region
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 - Tax Reporting Region
For more information, refer to the Payables User Guide or to the 11i Procure to Pay Advanced Topic Global Taxes.
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Supplier Information - Purchasing Region
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
Supplier Information - Purchasing Region
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
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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.
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Supplier Information - Receiving Region
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
Supplier Information - Receiving Region
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
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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.
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Supplier Site Settings
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
Supplier Site Settings
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.
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Supplier Level Versus Site Level Entry
Supplier Level Versus Site Level Entry
NoYesReceivingYesYesPurchasingYesYesTax ReportingYesYesWithholding TaxYesYesInvoice TaxYesYesEDIYesYesBank AccountsYesYesPaymentYesYesControlYesNoAccountingYesNoContactsNoYesClassificationYesYesGeneral
Site LevelSupplier LevelTabbed Region
Supplier Level Versus Site Level Entry
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.
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Entering Basic Supplier Site Information
Entering Basic Supplier Site Information
Enter basic supplier site information such as:• Site Name• Flexible Address Format
Contacts
SupplierSites
Entering Basic Supplier Site Information
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.
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Supplier Site Information - General Region
Supplier Site Information - General Region
• Site Uses• Supplier Notification Method• Communication• Shipping Network Location
Fax
Printed Document
Supplier Site Information - General Region
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
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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.
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Supplier Site Information - Contacts Region
Supplier Site Information - Contacts Region
• Last, First• Title
Linda CarrCustomer Service Rep
• Telephone • Mailstop
Supplier Site Information - Contacts Region
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.
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Supplier Site Information - Accounting Region
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
Supplier Site Information - Accounting Region
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.
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Supplier Site Information - EDI Region
Supplier Site Information - EDI Region
• EDI Location • EDI ID Number
Supplier Site Information - EDI Region
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.
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Supplier Site Information - Tax Reporting Region
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 - Tax Reporting Region
For more information, refer to the Payables User Guide or to the 11i Procure to Pay Advanced Topic Global Taxes.
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Supplier Site Information - Purchasing Region
Supplier Site Information - Purchasing Region
• Pay On• Alternate Pay Site • Invoice Summary Level
Invoice
Supplier Site Information - Purchasing Region
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).
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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
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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.
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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
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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
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HR: Security Profile Vision Corporation
HR: Business Group Vision Corporation
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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
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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
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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
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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.
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Guided Demonstration - Create a Supplier (Required)
Responsibility: XXPurchasing, Vision Operations
(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
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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
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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
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58. Close the Supplier Sites and Supplier windows.
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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
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Solution - Define a Supplier
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
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.
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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
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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
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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
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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
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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.
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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
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− 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 __________.
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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
• 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
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.
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Solution - Adjust a Supplier Site
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
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
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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
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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).
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Maintaining Supplier and Supplier Site Information
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
Maintaining Supplier and Supplier Site Information
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.
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Avoiding Duplicate Suppliers
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
Avoiding Duplicate Suppliers
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
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If duplicate entries are found, consider using the Supplier Merge functionality to correct and consolidate records.
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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.
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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.
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Data Example - Supplier Merge
Data Example - Supplier Merge
Oracle CorporationTarget/Correct Supplier
Site NamesCA-REDWOODIL-CHICAGOVA-RESTONFL-ORLANDO
Oracle CorpIncorrect Supplier
Site NamesCA-REDWOODFL-ORLANDO
mergecopy
Data Example - Supplier Merge
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.
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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.
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Agenda
Agenda
• Describe overview of suppliers• Define suppliers• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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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.
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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.
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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.
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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
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Locations, Organizations, Units of Measure and Items Chapter 3 - Page 1
Locations, Organizations, Units of Measure and Items Chapter 3
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Locations, Organizations, Units of Measure and Items
Locations, Organizations, Units of Measure and Items
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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
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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.
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Oracle Applications Use Items
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
Oracle Applications Use 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.
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How Do Oracle Applications Use Items?
How Do Oracle Applications Use Items?
Production Receiving Invoices to Customer
Invoices from Suppliers
Shipments
How Do Oracle Applications Use Items?
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
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• 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
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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
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• 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.
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Items Have Statuses Which Represent the Life Cycle of the Item
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
Items Have Statuses Which Represent the Life Cycle of the Item
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
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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.
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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,
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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
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Item Master Organization and Child Organizations
Item Master Organization and Child Organizations
Inventory Organization 1
Inventory Organization 2
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).
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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.
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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.
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Setup, Define and Maintain Items
Choose Item Attribute Control Levels
DefineStatusControlLevels
DefineStatuses
DefineCategory
Sets
1
DefineDefault
CategorySets
DefineUOMs
DefineCategories
CreateTemplates
DefineCatalogs
Setup, Define and Maintain Items
Setup, Define and Maintain Items
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.
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• 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.
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Setup, Define and Maintain Items
Copy items
Enter attribute values
Enable in child organizations
Update organization level attributes
Define item costs
Copy templates
1
Setup, Define and Maintain Items
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Describing Attribute Control at Master Level
Describing Attribute Control at Master Level
Inventory Organization 1
Item Master
Inventory Organization 2
Inventory Item - Yes
Inventory Item - YesInventory Item - Yes
Describing Attribute Control at Master Level
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
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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.
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Describing Attribute Control at Child Level
Describing Attribute Control at Child Level
Make/Buy = Make
Make/Buy = MakeMake/Buy = Buy
Inventory Organization 1
Item Master
Inventory Organization 2
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
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• 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.
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Describing Item Status Attribute Controls
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
Describing Item Status Attribute Controls
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
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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.
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Describing Status Attribute Dependencies
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
Describing Status Attribute Dependencies
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.
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Describing Item Attributes - Inventory
Describing Item Attributes - Inventory
Inventory item Stockable Transactable
Describing Item Attributes - Inventory
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
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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.
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• 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.
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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.
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Describing Item Attributes - Purchasing
Describing Item Attributes - Purchasing
Purchased Invoice Matching
List Price Default Buyer
Describing Item Attributes - Purchasing
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
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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
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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
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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.
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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.
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Describing Item Attributes - Receiving
Describing Item Attributes - Receiving
Receipt Date Controls
Receipt RoutingValid Transactions
Overreceipt Quantity Control
Describing Item Attributes - Receiving
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.
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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
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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.
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Guided Demonstration - Create an Expense Item (Required)
Responsibility: XXPurchasing, Vision Operations
(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
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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.
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Guided Demonstration - Create an Inventory Item (Required)
Responsibility: XXPurchasing, Vision Operations
(N) Items > Master Items
Create an Inventory Item
1. Item = XXMonitor
2. Description = Inventory Item
3. (T) Main
4. Primary Unit of Measure = Each
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
10. Purchased = Checked
11. Purchasable = Checked
12. Use Approved Supplier = Unchecked
13. Buyer = Your name
14. List Price = 250
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
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19. Days Late = 5
20. Allow Substitute Receipts = Yes
21. Allow Unordered Receipts = Yes
22. Allow Express Transactions = Yes
23. Receipt Routing field = Standard
24. Enforce Ship-To = Warning
25. Save
Assign the Item to a Purchasing Category
26. (M) Tools > Categories
27. Override the category to XX.COMPUTER
28. Save
Enable the Item in an Inventory Organization
29. (M) Tools > Organization Assignment
30. Assign the item to the following inventory organizations:
Org Name Assigned
M1 Seattle Manufacturing Checked
M2 Boston Manufacturing Checked
M3 Dallas Manufacturing Checked
31. Save
32. Close the Organization Assignment and the Master Item windows.
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Guided Demonstration - Create an Item for a Routinely Purchased Asset (Required)
Responsibility: XXPurchasing, Vision Operations
(N) Items > Master Items
Create an Item that will be Capitalized and Depreciated after Purchase
1. Item = XXComputerPC
2. Description = High Speed Computer
3. Primary Unit of Measure = Each
4. Item Status field = Active
5. (T) Purchasing
6. Purchased = Checked
7. Purchasable = Checked
8. Use Approved Supplier = Unchecked
9. Default Buyer = Your name
10. List Price = 1200
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
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21. Enforce Ship-To = Warning
22. Save
Assign the Item to a Purchasing Category
23. (M) Tools > Categories
24. Override the category to XX.COMPUTER
25. Save
Enable the Item in an Inventory Organization
26. (M) Tools > Organization Assignment
27. Assign the item to the following inventory organization:
Org Name Assigned
M1 Seattle Manufacturing Checked
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
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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.
• 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.
Tasks
Log on to the System
Log on to the system using the following information. − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create an Expense Item
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
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Enable the Item in an Inventory Organization
20. Assign the item to the following inventory organizations:
Org Name Assigned
M1 Seattle Manufacturing Checked
M2 Boston Manufacturing Checked
M3 Dallas Manufacturing Checked
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
Enable the Item in an Inventory Organization
36. Assign the item to the following inventory organizations:
Org Name Assigned
M1 Seattle Manufacturing Checked
M2 Boston Manufacturing Checked
M3 Dallas Manufacturing Checked
Create an Item that will be Capitalized and Depreciated after Purchase − Item = XXComputerPC
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− 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
Enable the Item in an Inventory Organization
52. Assign the item to the following inventory organizations:
Org Name Assigned
M1 Seattle Manufacturing Checked
M2 Boston Manufacturing Checked
M3 Dallas Manufacturing Checked
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Solution - Create Items
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create an Expense Item
1. (N) Change Organization
2. From the list of values, choose M1-Seattle Manufacturing and click OK
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
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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
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Enable the Item in an Inventory Organization
8. (M) Tools > Organization Assignment
9. Assign the item to the following inventory organizations:
Org Name Assigned
M1 Seattle Manufacturing Checked
M2 Boston Manufacturing Checked
M3 Dallas Manufacturing Checked
10. Save
11. Close the Organization Assignment and Master Item windows.
Create an Inventory Item
12. (N) Items > Master Items − Item = XXMonitor − Description = Inventory Item
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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
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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
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Enable the Item in an Inventory Organization
21. (M) Tools > Organization Assignment
22. Assign the item to the following inventory organizations:
Org Name Assigned
M1 Seattle Manufacturing Checked
M2 Boston Manufacturing Checked
M3 Dallas Manufacturing Checked
23. Save
24. Close the Organization Assignment and the Master Item windows.
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
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− 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
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Enable the Item in an Inventory Organization
Org Name Assigned
M1 Seattle Manufacturing Checked
M2 Boston Manufacturing Checked
M3 Dallas Manufacturing Checked
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Define Item Relationships - Purchasing
Define Item Relationships - Purchasing
Types of item relationships
Manufacturer Part Numbers - Supplier
Item Number
Related items
Substitute Items
Define Item Relationships - Purchasing
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.
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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.
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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
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Describing 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
Describing Item Templates
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.
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Creating Item Templates
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
Creating Item Templates
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.
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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.
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Using Item Templates
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!
Using Item Templates
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.
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Example of Using a 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
Example of Using a Template
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.
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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?
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• 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?
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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
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RFQs and Quotations Chapter 4 - Page 1
RFQs and Quotations Chapter 4
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RFQs and Quotations Chapter 4 - Page 2
RFQs and Quotations
RFQs and Quotations
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Procure to Pay Lifecycle
Procure to Pay Lifecycle
Supplier Performance
Requisitions
Purchase Orders
Receiving
Reporting
Invoice/ Payment
Supplier management
RFQs/ Quotations
Catalog Content
Management
Sourcing
Ordering
Analysis
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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
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Agenda
Agenda
• Understand the RFQs and quotation process• Enter RFQs• Enter quotations• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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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.
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Agenda
Agenda
• Understand the RFQs and quotation process• Enter RFQs• Enter quotations• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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Request for Quotation
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
Request for Quotation
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
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RFQs and Quotations Chapter 4 - Page 9
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.
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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.
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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).
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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.
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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.
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Guided Demonstration - Create a Supplier List (Required)
Responsibility: XXPurchasing, Vision Operations
(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
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Practice - Create a Supplier List
Overview
In this practice you will enter a supplier and add it to a supplier list.
Assumptions
• Replace XX with your terminal number or initials.
• 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.
Tasks
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create a Supplier List
4. Navigate to the Define Supplier Lists window − Name = XXComputer Hardware − Description = Computer Hardware − Make the list inactive in three months.
Name Site
Advanced Network Devices SANTA CLARA
Star Gate Ltd STARGATE-BUY
Advantage Corp ADVANTAGE - US
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Solution - Create a Supplier List
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
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
Advanced Network Devices SANTA CLARA
Star Gate Ltd STARGATE-BUY
Advantage Corp ADVANTAGE - US
3. Save
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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
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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
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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.
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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.
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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).
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RFQ Price Breaks/Shipments
RFQ Price Breaks/Shipments
• Price Breaks (Catalog and Standard RFQs)• Shipments (Bid RFQs)
RFQ Price Breaks/Shipments
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.
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Guided Demonstration - Create a Catalog RFQ (Required)
Responsibility: XXPurchasing, Vision Operations
(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
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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
2 Each 25 Blank M1 M1-Seattle 15
3 Each 50 Blank M1 M1-Seattle 20
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
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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
35. Do not submit another request
36. (M) View > Requests
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.
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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
• Replace XX with your terminal number or initials.
• 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.
Tasks
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create an Expense Item
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
Enable the Item in an Inventory Organization
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Assign the expense item to the following inventory organizations:
Org Name
M1 Seattle Manufacturing
M2 Boston Manufacturing
M3 Dallas Manufacturing
Create an Inventory Item
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
Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing field = Standard
Enable the Item in an Inventory Organization
Assign the expense item to the following inventory organizations:
Org Name
M1 Seattle Manufacturing
M2 Boston Manufacturing
M3 Dallas Manufacturing
Create a Catalog RFQ
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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
Complete the Requested Terms
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.
Number Item Category UOM Target Price
1 CM13139 PRODUCTN.DRIVES Each Blank
2 XXSoftware MISC.MISC Each Blank
3 XXMonitor MISC.MISC Each Blank
Add Requested Price Breaks to EACH Line
Add the following price breaks to EACH line
Num UOM Quantity Price Org Ship-To Discount
1 Each 10 Blank M1 M1-Seattle 10
2 Each 25 Blank M1 M1-Seattle 15
3 Each 50 Blank M1 M1-Seattle 20
Add Suppliers
Add suppliers to your RFQ by copying them from your XXComputer Hardware supplier list.
Print the RFQ
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Use the Printed RFQ Report (Landscape) to print your RFQ. Use the following parameters.
Parameter Value
Report Type All
RFQ Number From Your RFQ
To Your RFQ
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Solution - Create a Catalog RFQ
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create an Expense Item
1. (N) Change Organization
2. 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.
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
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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
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Enable the Item in an Inventory Organization
9. (M) Tools > Organization Assignment
Assign the item to the following inventory organizations:
Org Name
M1 Seattle Manufacturing
M2 Boston Manufacturing
M3 Dallas Manufacturing
10. Save
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Create an Inventory Item
11. (M) File > New − Item = XXMonitor − Description = Inventory Item
12. (T) Main − Primary Unit of Measure = Each − Item Status = Active
13. (T) Inventory − Inventory Item = Checked
14. 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.
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15. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Buyer = Stock, Ms. Pat − List Price = 250
16. Save
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17. (T) Receiving
18. 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
19. Save
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Enable the Item in an Inventory Organization
20. (M) Tools > Organization Assignment
Assign the item to the following inventory organizations:
Org Name
M1 Seattle Manufacturing
M2 Boston Manufacturing
M3 Dallas Manufacturing
21. Save
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Create a Catalog RFQ
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.
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Complete the Requested Terms
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:
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Number Item Category UOM Target Price
1 CM13139 PRODUCTN.DRIVES Each Blank
2 XXSoftware MISC.MISC Each Blank
3 XXMonitor MISC.MISC Each Blank
Note: The supplier will reply with pricing information.
Add Requested Price Breaks to EACH Line
28. (B) Price Breaks
29. 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
2 Each 25 Blank M1 M1-Seattle 15
3 Each 50 Blank M1 M1-Seattle 20
Note: This must be done for EACH item on your RFQ.
30. Save
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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
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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
RFQ Number From Your RFQ
To Your RFQ
42. Click OK
43. (B) Submit
44. Do not submit another request
45. (M) View > Requests
46. (B) Find
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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.
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Agenda
Agenda
• Understand the RFQs and quotation process• Enter RFQs• Enter quotations• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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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.
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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.
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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.
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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).
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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.
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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
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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.
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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.
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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.
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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.
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Quotation Price Breaks/Shipments
Quotation Price Breaks/Shipments
• Quotation Price Breaks (Catalog and Standard)• Quotation Shipments (Bid)
Quotation Price Breaks/Shipments
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.
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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.
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Guided Demonstration - Create a Catalog Quote from an RFQ (Required)
Responsibility: XXPurchasing, Vision Operations
(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.
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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:
Num UOM Quantity Price Org Ship-To Discount
1 Each 10 Calculates M1 M1-Seattle 10
2 Each 25 Calculates M1 M1-Seattle 15
3 Each 50 Calculates M1 M1-Seattle 20
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
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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.
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Guided Demonstration - Schedule the Send Notifications for Purchasing Documents Process (Required)
Responsibility: XXPurchasing, Vision Operations
(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
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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
• Replace XX with your terminal number or initials.
• 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.
Tasks
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Automatically Create a Quotation from an RFQ
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
Number N/A for automatic numbering
Type Catalog Quotation
Supplier XXIBM Corporation
Site NEW YORK
Contact Choose from your list of values
− Status = Active
Record Pricing
Record pricing according to the following table:
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Item Price
CM13139 100
XXSoftware 450
XXMonitor 250
Update price breaks for all three quotation lines according to the following table:
Num UOM Quantity Price Org Ship-To Discount
1 Each 10 Calculates M1 M1-Seattle 10
2 Each 25 Calculates M1 M1-Seattle 15
3 Each 50 Calculates M1 M1-Seattle 20
Approve the Entire Quotation
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
Comments Design approved by Engineering
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Solution - Create a Catalog Quote from an RFQ
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Automatically Create a Quotation 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
Number N/A for automatic numbering
Type Catalog Quotation
Supplier Advanced Network Devices
Site SANTA CLARA
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.
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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
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Record Pricing
Record pricing according to the following table:
Item Price
CM13139 100
XXSoftware 450
XXMonitor 250
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Update price breaks for all three quotation lines according to the following table:
Num UOM Quantity Price Org Ship-To Discount
1 Each 10 Calculates M1 M1-Seattle 10
2 Each 25 Calculates M1 M1-Seattle 15
3 Each 50 Calculates M1 M1-Seattle 20
13. Exit the Price Breaks window
Approve the Entire Quotation
14. (B) Approve
15. 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
Comments Design approved by Engineering
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16. (B) OK
17. (B) OK to close the note window.
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.
20. Record your quotation number.
21. Requery your RFQ and note the Responded and Quotation fields are populated.
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Agenda
Agenda
• Understand the RFQs and quotation process• Enter RFQs• Enter quotations• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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RFQs and Quotations Chapter 4 - Page 69
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.
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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
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Approved Supplier Lists and Sourcing Rules Chapter 5 - Page 1
Approved Supplier Lists and Sourcing Rules Chapter 5
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Approved Supplier Lists and Sourcing Rules
Approved Supplier Lists and Sourcing Rules
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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
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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
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Agenda
Agenda
• Create the approved supplier list• Create sourcing rules• Understand setup options• Understand additional implementation
considerations
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Approved Supplier Lists
Approved Supplier Lists
Ship-toorganization or
global organizations
Commodity Approved Supplier List
Items
Supplier site
Approved Supplier Lists
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.
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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
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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.
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Guided Demonstration - Create an Approved Supplier List Status (Required)
Responsibility: XXPurchasing, Vision Operations
(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
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Practice - Create an Approved Supplier List Status
Overview
In this practice you will create an approved supplier list status.
Assumptions
• Replace XX with your terminal number or initials.
• 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.
Tasks
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create a Supplier Status
1. Navigate to the Approved Supplier List Status window
• Status = XXApproved
• Description = Approved for Business
Assign Business Rules
Assign business rules to the status according to the following table: Control Rule Rule Description
Allow PO Approval Purchase Order Approval
Allow Sourcing Sourcing
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Solution - Create an Approved Supplier List
Log on to the System
1. Enter sign on information − User Name = operations − Password = welcome
2. Select a responsibility
• Responsibility = Purchasing, Vision Operations
Create a Supplier Status
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
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
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ASL Common Header Attributes
ASL Common Header Attributes
Item CM13139
Supplier
IBM
Stargate Ltd.
Status Review-By
Approved
Debarred
02-JUN-03
15-MAR-03
COMPUTER-PC
ASL Common Header Attributes
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.
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• 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.
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ASL Header Attributes - Item
ASL Header Attributes - Item
Item CM13139
Supplier
IBM
Stargate Ltd.
Status Item #
Approved
Debarred
850HDRV
HD850MB
Use ApprovedSupplier?
ASL Header Attributes - Item
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.
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ASL Header Attributes - Commodity
ASL Header Attributes - Commodity
Supplier
IBM
Stargate Ltd.
Status Item #
Approved
Debarred
-
-
COMPUTER-PC
ASL Header Attributes - Commodity
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:
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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.
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Supplier-Commodity/Item Attributes
Supplier-Commodity/Item Attributes
• Purchasing UOM• Release Method• Price Update Tolerance• Country of Origin
Supplier-Commodity/Item Attributes
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.
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• 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.
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Supplier-Commodity/Item Attributes
Supplier-Commodity/Item Attributes
• Source Document• Supplier Scheduling• Planning Constraints
Use ApprovedSupplier?
850HDRV
Item CM13139
Supplier-Commodity/Item Attributes
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.
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Supplier-Commodity/Item Attributes Source Document
Supplier-Commodity/Item AttributesSource Document
Item CM13139
Use ApprovedSupplier?
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.
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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.
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Supplier-Commodity/Item Attributes Supplier Scheduling
Supplier-Commodity/Item AttributesSupplier Scheduling
Item CM13139
Use ApprovedSupplier?
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
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• 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.
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Supplier-Commodity/Item Attributes Planning Constraints
Supplier-Commodity/Item AttributesPlanning Constraints
Item CM13139
Use ApprovedSupplier?
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
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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.
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Guided Demonstration - Require an Approved Supplier for an Item (Required)
Responsibility: XXPurchasing, Vision Operations
(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
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17. (B) Approve
18. Verify that this item requires an approved supplier list
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Guided Demonstration - Create an Approved Supplier List (Required)
Responsibility: XXPurchasing, Vision Operations
(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
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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”.
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Practice - Require an Approved Supplier for an Item
Overview
In this practice you will set the Use Approved Supplier attribute on an item.
Assumptions
• Replace XX with your terminal number or initials.
• 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.
Tasks
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create an Inventory Item
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
Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing field = Standard
Enable the Item in an Inventory Organization
Assign the expense item to the following inventory organizations:
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Org Name
M1 Seattle Manufacturing
M2 Boston Manufacturing
M3 Dallas Manufacturing
Set the Use Approved Supplier Flag for an Item
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
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Solution - Require an Approved Supplier for an Item
Log on to the System
1. Enter sign on information. − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create an Inventory Item
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
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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.
• (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
Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing field = Standard
• Save
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Enable the Item in an Inventory Organization
3. Navigate to the Organization Assignment window.
• (M) Tools > Organization Assignment
Assign the item to the following inventory organizations: Org Name
M1 Seattle Manufacturing
M2 Boston Manufacturing
M3 Dallas Manufacturing
4. Save
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5. Close the Organization Assignment and the Master Item windows.
Set the Use Approved Supplier Flag for an Item
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
8. Navigate to the Purchase Orders window
• (N) Purchase Orders > Purchase Orders − Supplier = Advanced Network Devices − Site = SANTA CLARA
• (T) Items − Item = XXMonitor
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− Quantity = 10 − Price = 250 − Need-By = Today’s date
• (B) Approve
9. Verify that this item requires an approved supplier list
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Practice - Create an Approved Supplier List
Overview
In this practice you will enter a supplier and add it to a supplier list.
Assumptions
• Replace XX with your terminal number or initials.
• 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.
Tasks
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
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
Num UOM Quantity Price Org Ship-To Discount
1 Each 10 Calculates M1 M1-Seattle 10
2 Each 25 Calculates M1 M1-Seattle 15
3 Each 50 Calculates M1 M1-Seattle 20
Add an Approved Supplier for your Item
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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
Make the Approved Supplier List a Global Approved Supplier List
3. (T) Record Details − Global = Yes
Define the Attributes of the Approved Supplier List Entry
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.
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Solution - Create an Approved Supplier List
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
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
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Specify price breaks according to the following table Num UOM Quantity Price Org Ship-To Discount
1 Each 10 Calculates M1 M1-Seattle 10
2 Each 25 Calculates M1 M1-Seattle 15
3 Each 50 Calculates M1 M1-Seattle 20
3. Exit the Price Breaks window
4. (B) Approve
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
Comments Design approved by Engineering
5. (B) OK
6. (B) OK to close the note window.
7. Record your quotation number.
Add an Approved Supplier for your Item
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.
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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
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
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Define the Attributes of the Approved Supplier List Entry
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”.
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Agenda
Agenda
• Create the approved supplier list• Create sourcing rules• Understand setup options• Understand additional implementation
considerations
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Sourcing Rules Overview
Sourcing Rules Overview
Source Details
SourceSupplier
SiteContact
Phone
From Sourcing Rule
Type Document Line Num
SupplierStar Gate
Sourcing Rules Overview
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.
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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.
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Oracle Products That Use Sourcing Rules
Oracle Products That Use Sourcing Rules
Purchasing
Supply
Chain Planning
Planning
Supplier
Scheduling
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Create a Sourcing Rule
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
Create a Sourcing Rule
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.
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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
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• Item • Category/inventory organization combination • Category • Inventory organization • Global
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Levels of Sourcing Rule Assignments
Levels of Sourcing Rule Assignments
• Item/organization• Item • Category/organization• Category• Inventory organization• Global
Item CM13139 COMPUTER-PC SeattleManufacturing
Global
Item/ Organization
Levels of Sourcing Rule Assignments
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.
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Sourcing Rules with an ASL Source Document
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
Sourcing Rules with an ASL Source Document
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.
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Sourcing Rules without an ASL Source Document
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
Sourcing Rules without an ASL Source 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.
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Default Sourcing Information to Requisitions
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
Default Sourcing Information to Requisitions
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.
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Default Sourcing Information to Standard Purchase Orders
Default Sourcing Information to Standard Purchase Orders
Quotation
ContractQuotationLine Num.
Quote TypeQuote Num.
Price StandardPOFrom
Source Document
Default Sourcing Information to Standard Purchase Orders
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.
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Guided Demonstration - Create a Sourcing Rule and a Sourcing Rule Assignment (Required)
Responsibility: XXPurchasing, Vision Operations
(N) Supply Base > Sourcing Rules (M1 – Seattle Manufacturing)
Create a Sourcing Rule
1. Rule Name = XXComputer Hardware
2. All Orgs = Selected
3. From Date = Today’s date
4. Type = Buy From
5. Supplier = XXIBM Corporation
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.
Create a Sourcing Rule Assignment
15. Navigate to the Sourcing Rule Assignments window
16. (N) Supply Base > Assign Sourcing Rule
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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
28. Item = XXMonitor
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
36. Navigate to the Purchase Orders window
37. (N) Purchase Orders > Purchase Orders
38. Supplier = XXIBM Corporation
39. Site = NEW YORK
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40. (T) Item
41. Item = XXMonitor
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
50. Item = XXMonitor
51. (B) OK
52. (T) Key Attributes
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
58. Navigate to the Requisitions window.
59. (N) Requisitions > Requisitions
60. (T) Items
61. Item = XXMonitor
62. (T) Items
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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.
66. (T) Source Details
67. Verify there is no quotation information.
68. Close the window without saving your work.
69. Record the reason supplier information STILL defaults
__________________________________________________________________
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Guided Demonstration - Enable Automatic Document Sourcing (Required)
Responsibility: XXPurchasing, Vision Operations
(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
3. Navigate to the Requisitions window.
4. (N) Requisitions > Requisitions
5. (T) Items
6. Item = XXMonitor
7. Quantity = 10
8. (T) Source Details
9. Verify that quotation information has defaulted.
10. Verify the agreement details and the supplier information that appears below the lines region.
11. Close the window without saving your work.
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.
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2. If only blanket purchase agreements and quotations exist, the most recent one (create dates are compared) is used.
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Practice - Create a Sourcing Rule and a Sourcing Rule Assignment
Overview
In this practice you will create sourcing rules and sourcing rule assignments.
Assumptions
• Replace XX with your terminal number or initials.
• 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.
Tasks
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create a Sourcing Rule
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
Verify the Default Assignment Set
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
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.
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2. Navigate to the Sourcing Rule Assignments window − Assigned To = Item − Item/Category = XXMonitor − Sourcing Rule = XXComputer Hardware
Create a Requisition/View Sourcing Information
3. Navigate to the Requisitions window.
Create a requisition for your XXMonitor item. Verify that supplier information is supplied by your sourcing rule.
4. Verify the supplier information that appears to the right below the lines region.
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.
6. Verify source document information from the ASL defaults.
Create a Purchase Order/View Sourcing Information
7. Navigate to the Purchase Orders window
8. Create a purchase order for your XXMonitor item.
9. Supplier = Advanced Network Devices − Site = SANTA CLARA − Item = XXMonitor
10. Verify price breaks are in effect
11. Verify quotation references have defaulted
Remove the Source Document from the ASL
12. Navigate to the Approved Supplier List window
13. Query the approved supplier list for your XXMonitor item and remove the source document.
Verify Source Document Information does not Default
14. Navigate to the Requisitions window.
15. Create a requisition for your XXMonitor item.
16. Verify the supplier information that appears to the right below the lines region.
17. Verify there is no quotation information.
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18. The reason supplier information still defaults is:
__________________________________________________________________
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Solution - Create a Sourcing Rule and a Sourcing Rule Assignment
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create a Sourcing Rule
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
Verify the Default Assignment Set
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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.
Create a Sourcing Rule Assignment
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
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− Sourcing Rule = XXComputer Hardware
10. Save
Create a Requisition/View Sourcing Information
11. Navigate to the Requisitions window.
• (N) Requisitions > Requisitions − Item = XXMonitor
12. Tab out of the Item field.
13. Verify the supplier information that appears to the right below the lines region.
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.
15. (T) Source Details
16. Verify source document information from the ASL defaults.
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Create a Purchase Order/View Sourcing Information
17. Navigate to the Purchase Orders window
• (N) Purchase Orders > Purchase Orders − Supplier = Advanced Network Devices − Site = SANTA CLARA − (T) Item − Item = XXMonitor − Quantity = 11
18. Verify price breaks are in effect
19. (T) Reference Documents
20. Verify quotation references have defaulted
Remove the Source Document from the ASL
21. Navigate to the Approved Supplier List window
• (N) Supply Base > Approved Supplier List
22. (M) View > Find − Item = XXMonitor
23. (B) OK
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24. (T) Key Attributes
25. Place cursor in the Supplier field
26. (B) Attributes
27. Delete the quotation
28. Save
Verify Source Document Information does not Default
29. Navigate to the Requisitions window.
• (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.
34. (T) Source Details
35. Verify there is no quotation information.
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:
__________________________________________________________________
37. Close the window without saving your work.
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Practice - Enable Automatic Document Sourcing
Overview
In this practice you will enable and use Automatic Document Sourcing.
Assumptions
• Replace XX with your terminal number or initials.
• 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.
Tasks
Verify Automatic Document Sourcing is Enabled
1. Navigate to the Personal Profiles window
2. Query “PO%Auto%” in 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.
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Solution - Enable Automatic Document Sourcing
Verify Automatic Document Sourcing is Enabled
1. Navigate to the System Profiles window
• (N) Personal Profiles
2. Query “PO%Auto%” in 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
4. Navigate to the Requisitions window.
• (N) Requisitions > Requisitions
5. (T) Items − Item = XXMonitor − Quantity = 11
6. (T) Source Details
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.
9. Close the window without saving your work.
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.
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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
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Requisitions Chapter 6 - Page 1
Requisitions Chapter 6
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Requisitions
Requisitions
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Procure to Pay Lifecycle
Procure to Pay LifecycleRequisitions
Purchase Orders
Receiving
Reporting
Invoice/ Payment
Supplier Performance
Supplier management
RFQs/ Quotations
CatalogContent
Management
Sourcing
Ordering
Analysis
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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
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Agenda
Agenda
• Understand the requisition process• Enter requisitions• Use the supplier item catalog• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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Where Purchase Requisitions Fit
Where Purchase Requisitions Fit
Import/reschedulerequisitions
Approval
Inventory WIP MRP
Demand
RequisitionRequisition
pool
Order MgmtInternalsales order
Manuallycreate
Order Mgmt
PO
Other Systems
Where Purchase Requisitions Fit
Requisitions represent demand for goods and services. Demand can come from a variety of sources.
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Requisition Lifecycle
Requisition Lifecycle
No
Submit for Approval
In Process
Approve?
Approved
Requisition Pool
RejectedReturn
Pre-Approved
Approve?
Yes
No
Yes
Cancelled
PurchaseOrder
Requisition Lifecycle
During the lifecycle of a requisition, many people can act on the requisition including: • Employees • Buyers or buyer-planners • Approvers • Suppliers • Purchasing staff
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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.
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Agenda
Agenda
• Understand the requisition process• Enter requisitions• Use the supplier item catalog• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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Requisition Structure
HEADER
LINE 1
DISTRIBUTION
LINE 2
DISTRIBUTION
Requisition Structure
Requisition Structure
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.
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Requisition Preferences
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
Requisition Preferences
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
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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.
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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.
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Requisition Line
Requisition Line
• Line Type• Item• Category• Description• Quantity• Unit of Measure• Price• Need-by Date• Tax Code
HEADER
LINE
DISTRIBUTION
Purchase Requisition
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
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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.
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Requisition Line
Requisition Line
• Destination Type• Requestor• Organization• Location• Source Type• Attachments
HEADER
LINE
DISTRIBUTION
Purchase Requisition
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
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Enter a source type of Inventory or Supplier. Attachments Create attachments as needed.
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Guided Demonstration - Create a Purchase Requisition (Required)
Responsibility: XXPurchasing, Vision Operations
(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.
9. (T) Source Details
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
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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
23. Location = M1 - Seattle
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.
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Practice - Create a Purchase Requisition
Overview
In this practice you will create a purchase requisition.
Assumptions
• Replace XX with your terminal number or initials.
• 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.
Tasks
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create an Inventory Item
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
2. 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
Enable the Item in an Inventory Organization
Assign the expense item to the following inventory organizations:
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Org Name
M1 Seattle Manufacturing
M2 Boston Manufacturing
M3 Dallas Manufacturing
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
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Solution - Create a Purchase Requisition
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
Create an Inventory Item
1. Open the Master Items window:
• (N) Items > Master Items − Item = XX Wood Book Case − Description = XX Wood Book Case
2. (T) Main − Primary Unit of Measure = Each − Item Status = Active
3. (T) Inventory − Inventory Item = Checked
4. Save
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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.
5. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Buyer = Stock, Ms. Pat − List Price = 389.00
6. Save
7. (T) Receiving
8. 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
9. Save
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Enable the Item in an Inventory Organization
10. (M) Tools > Organization Assignment
Assign the item to the following inventory organizations:
Org Name
M1 Seattle Manufacturing
M2 Boston Manufacturing
M3 Dallas Manufacturing
11. Save
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12. Close the Organization Assignment and the Master Item windows.
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
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15. Click on the Details tab − Note to Receiver = Besure to inspect this item
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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
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Agenda
Agenda
• Understand the requisition process• Enter requisitions• Use the supplier item catalog• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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Supplier Item Catalog
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
Supplier Item Catalog
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.
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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
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.
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Guided Demonstration - Create a Requisition Template (Required)
Responsibility: XXPurchasing, Vision Operations
(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
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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
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Guided Demonstration - Use the Supplier Item Catalog to Create a Requisition (Required)
Responsibility: XXPurchasing, Vision Operations
(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
11. Location = M1 - Seattle
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!
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Copy Items from the Order Pad to the Requisition
17. (B) Select
18. Save
19. (B) Approve
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Requisitions Chapter 6 - Page 36
Practice - Create a Requisition Template
Overview
In this practice you will create a purchase requisition template.
Assumptions
• Replace XX with your terminal number or initials.
• 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.
Tasks
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
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
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Solution - Create a Requisition Template
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
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
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− 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.
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7. Save
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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
• Replace XX with your terminal number or initials.
• 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.
Tasks
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
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
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Solution - Use the Supplier Item Catalog to Create a Requisition
Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations
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
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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
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10. Make a note of your requisition number.
11. Click the Approve button to approve your requisition
12. OK
13. OK
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Requisitions Chapter 6 - Page 45
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Requisition Distribution
Requisition Distribution
• Quantity• Charge account• Project information
HEADER
LINE
DISTRIBUTION
Purchase Requisition
Requisition 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
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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.
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Allocating Costs to Multiple Charge Accounts
01-510-000-1698
01-510-200-8596
75%
25%Copier Paper
Item Account Distribution
Allocating Costs to Multiple Charge Accounts
• You can allocate the cost of a line item to different charge accounts.
• You can do this by percent, quantity or amount.
Allocating Costs to Multiple Charge Accounts
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.
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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.
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Approving Requisitions
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
Approving Requisitions
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.
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Requisition Templates
Requisition Templates
• Use requisition templates to simplify the processof requisitioning frequently requested items.
• Consists of items, pricing andsourcing information.
Requisition template Requisitions
Requisition Templates
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.
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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
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Agenda
Agenda
• Understand the requisition process• Enter requisitions• Use the supplier item catalog• Identify key standard reports• Understand setup options• Understand additional implementation
considerations
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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.
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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.
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Summary
Summary
You should now be able to do the following:• Create purchase requisitions• Identify key reports• Understand setup options• Understand additional implementation
considerations