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09Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Orders
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 2
Procurement: Purchase Orders
RequisitionsSupplier
identification
Sourcing
Ordering
Analysis
RFQs/ Quotations
Purchase orders
Receiving
Reporting
Invoice/ Payment
Supplier performance
Supplier management
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 3
Objectives
After completing this module, you should be able to do the following:
• Create standard, blanket, global, contract, and plannedpurchase documents
• Create purchasing document releases
• Understand purchasing document interfaces
• Maintain purchase orders
• Identify key reports
• Understand setup options
• Identify additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 4
Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create global agreements
• Create planned purchase orders
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key standard reports
• Understand setup options
• Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 5
Purchasing Document Flow
Requisition
RFQ
QuoteBlanket
PA ReleaseContractPA
BlanketPA
StandardPO
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Demand
Import
RequestersRequisition
Approval
Inventory WIP MRP Order Mgmt
Other Systems
DemandWorkbench
Order management
Internalorder
Purchase order
Creating Purchase Orders
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 7
A master terms and conditions document. Typically use contract purchase agreements
when negotiating pricing on a volume of business to manage
terms and conditions.
Pricing on blanket purchase agreements can include break pricing. You typically use this
agreement when negotiating volume discounts on individual items.
Purchase Order Types
Header
Line
Shipment
Distribution
Contract Agreement
HeaderHeader
Line
Header
Line
Shipment
Distribution
Blanket Agreement
Planned Purchase
Order
Standard Purchase
Order (PO)
Shipment
Distribution
Global Agreement
Header
Line
Shipment
Distribution
Standard PO
Scheduled Release
You create standard purchase orders
when you know the details of the goods
or services, estimated costs,
quantities, delivery schedules, and
accounting distributions
Planned purchase orders include tentative
delivery schedules and
accounting distributions.
Global Agreement
Using global agreements, buyers can negotiate prices on behalf of multiple
organizations within an
enterprise
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Quiz
The original copy of the purchase order you send to your supplier is a legal offer to buy.
1. True
2. False
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Purchase Order Components and Record Structure
Header
Lines
Shipments
Distributions
1 32
1 11
111
2
2 1
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Purchase Order Document Structure
PO_RELEASES_ALL
PO_LINE_LOCATIONS_ALL
PO_HEADERS_ALL
PO_LINES_ALL
PO_DISTRIBUTIONS_ALL
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Overview of Automatic Purchase Order Creation
PODemand Workbench
In addition to manual entry, documents can be automatically created using:
• AutoCreate
• PO Create Documents workflow
• Purchasing document open interface
• Copy documents
• Oracle Sourcing
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 12
Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create global agreements
• Create planned purchase orders
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key standard reports
• Understand setup options
• Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 13
Overview of Standard Purchase Orders
Buyer Supplier
Purchase Order
- binding agreement -
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 14
Default Value Hierarchy
Financials options
Purchasing and Receiving options
Supplier
Supplier site
Item
Purchasing Documents
1
2
1 Takes precedence over 2
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Simplify the Entry of Purchase Orders: Preferences
Purchasing Documents
Default Value Hierarchy
Preferences
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Standard Purchase Order Elements
Standard purchase orderscontain all four elements ofa purchasing document.
All purchase order typesrepresent some combinationof the basic elements of thestandard purchase order.
HEADER
LINE
SHIPMENT
DISTRIBUTION
Standard Purchase Order
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HEADER
LINE 1
SHIPMENT 1
DISTRIBUTION 1
LINE 2
SHIPMENT 1
DISTRIBUTION 1
Structure of a Simple Standard Purchase Order
each item is charged to a single charge account.
two items being ordered (Line 1
and Line 2)
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 18
Structure of a More Complex Standard Purchase Order
DISTRIBUTION 2
LINE 1
SHIPMENT 1
DISTRIBUTION 1
LINE 2
SHIPMENT 1
DISTRIBUTION 1
SHIPMENT 2
DISTRIBUTION 1
HEADER). Line 1, however, has a single shipment with multiple distributions
while line 2 has multiple shipments
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 19
Line
PO Number PO Type Created Date
Supplier Name Supplier Site Supplier Contact
Ship To Bill To Currency
Buyer Status Total
Description
Purchase Orders
Currency Terms
Entering Standard Purchase Order Header Information
PO Type: Select Standard Purchase Order for this field.
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 20
Standard Purchase Orders Terms and Conditions
Special Conditions
• Confirming Order
• Firm
• Acceptance Required
Notes
• Supplier
• Receiver
Terms
• Payment
• Freight
• Carrier
• FOB
• Pay On
Document
Freight terms: Specify freight terms to indicate who is responsible for the direct charges related to transporting shipped goods. Commonly used freight terms include Due (indicating you pay the freight charges) or Prepaid (indicating that the supplier will pay for the freight charges).
Pay On: If Receipt is selected, an invoice will be automatically created for this purchase order when receipt of the goods has been acknowledged
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 21
Entering Standard Purchase Order Lines Tabbed Regions
The line portion of the standard purchase order is comprised of four tabbed regions:
• Items
• Price Reference
• Reference Documents
• More
Items Price Reference Reference Docs & More
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ItemsNum, Type, Item, Revision,Category, Description,UOM, Quantity, Price,Promised, Need-By, SupplierItem, ChargeAccount, Amount
Price Reference
Reference Documents
More
Temporary Labor
Standard Purchase Order Line Items Tabbed Region
HEADER
LINE
SHIPMENT
DISTRIBUTION
Standard Purchase Order
It’s important that only supplier-provided dates be entered in the Promise field, and non supplier-provided dates be entered only in the Need-By date field. These dates will be used to measure supplier performance related to delivery issues.
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 23
Standard Purchase Order Line Price Reference Tabbed Region
Items
Price ReferenceNum, List Price,Market Price, Price Type
Reference Documents
More
Temporary Labor
HEADER
LINE
SHIPMENT
DISTRIBUTION
Standard Purchase Order
The list price is the price paid with no discounts, while the market price is what the item is currently selling for in the market.
Price Type: This is a user-defined list of values developed through lookup codes. Commonly used price types include fixed, variable and cost plus fee.
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 24
Standard Purchase Order Line Reference Documents Tabbed Region
Items
Price Reference
Reference DocumentsNum, Contract, Quotation,Line, Quotation Type,Supplier Quotation
More
Temporary Labor
HEADER
LINE
SHIPMENT
DISTRIBUTION
Standard Purchase Order
HEADER
LINE
SHIPMENT
DISTRIBUTION
Standard Purchase Order
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 25
Standard Purchase Order Line More Tabbed Region
Items
Price Reference
Reference Documents
MoreNum, Note to Supplier,UN Number, Hazard,Capital Expense
Temporary Labor
HEADER
LINE
SHIPMENT
DISTRIBUTION
Standard Purchase Order
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 26
Standard Purchase Order Line Temporary Labor Tabbed Region
Items
Price Reference
Reference Documents
More
Temporary LaborName, Start & End date
HEADER
LINE
SHIPMENT
DISTRIBUTION
Standard Purchase Order
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 27
Standard Purchase Order Line Reference Documents Tabbed Region
Items
Price Reference
Reference DocumentsNum, Contract, Quotation,Line, Quotation Type,Supplier Quotation
More
HEADER
LINE
SHIPMENT
DISTRIBUTION
Standard Purchase Order
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Entering Standard Purchase Order Shipments - Tabbed Regions
• The shipment portion of the standard purchase order is actually comprised of three tabbed regions:– Shipments– More– Status
• Must be at least one shipment for each line
• Can be many shipments for each line
Shipments More Status
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Num
Org/Ship-To
UOM/Quantity
Need-By
Promised Date/ Original Promise
Charge Account
Amount
Standard Purchase Order Shipment Shipments Tabbed Region
Shipments More Status
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Standard Purchase Order Shipment More Tabbed Region
Num
Receipt Close Tolerance (%)
Invoice Close Tolerance (%)
Invoice Matching
Accrue on Receipt
Firm
Shipments More Status
Two-Way: Purchase order and invoice quantities as well as purchase order and invoice unit prices must match within tolerance before the corresponding invoice can be paid. The receipt close tolerance can be set to 0% to allow the system to automatically close fully received lines.
Three-Way: Purchase order, receipt, and invoice quantities as well as purchase order and invoice unit process must match within tolerance before the corresponding invoice can be paid.
Four-Way: Purchase order, receipt, accepted, and invoice quantities as well as purchase order and invoice unit prices must match within tolerance before the corresponding invoice can be paid.
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Num
Status
Ordered
Received
Canceled
Billed
Standard Purchase Order Shipment Status Tabbed Region
Shipments More Status
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Standard Purchase Order Shipment Receiving Controls Button
Receiving Controls
HEADER
LINE
SHIPMENT
DISTRIBUTION
Standard Purchase Order
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Entering Standard Purchase Order Distributions - Tabbed Regions
• The distribution portion of the standard purchase order is comprised of three tabbed regions:– Destination– More– Project
• Details required internally to generate accounting for the shipment.
• Must be at least one distribution for each shipment, but can be many distributions for each shipment.
Destination More Project
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Standard Purchase Order Distribution Destination Tabbed Region
Num
Type
Requestor
Deliver-To/ Subinventory
Quantity
Charge Account
Accrual/Variance Accounts
Destination More ProjectExpense - The goods are delivered to the requestor at an expense location. The destination subinventory is not applicable.
Inventory - The goods are received into inventory upon delivery. You can choose this option only if the item is stock enabled in the ship-to organization.
Shop Floor - The goods are delivered to an outside processing operation defined by Work in Process. You can choose this option only for outside processing items.
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 35
Standard Purchase Order Distribution More Tabbed Region
Num
Requisition Number/Line
Online
Destination More Project
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Standard Purchase Order Distribution Project Tabbed Region
Num
Project
Task
Expenditure Type
Expenditure Org
Destination More Project
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Supplier Document Attachments
Attachment Type Supported
Notes to Supplier
Long/Short Text
Files (e.g. MS Word, Drawings)
URLS
ZIP files
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 38
Approve Standard Purchase Order
OK
Submit for Approval
Forward
Note
Approve Document
X
PrintFaxE-MailEDIXML
Fax NumberE-Mail Address
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 39
Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create global agreements
• Create planned purchase orders
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key standard reports
• Understand setup options
• Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 40
When to Use a Blanket Purchase Agreement
Header
Lines
Shipment
Distribution
Blanket release
Blanket purchase agreement
Dates of delivery are not known
Details of goods/servicesare known
Accounts and dollars arenot known
Long-term agreement
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 41
Blanket Releases
Releases can be created:
• Manually
• Automatically
Demand generated
outside Purchasing
Requisition Create Releases Process
Blanket Release
Manual
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Blanket Purchase Agreements Additional Information Entered
Additional information isentered for blanket purchaseagreements in the header, lineand price breaks purchaseorder elements windows. HEADER
LINE
PRICE BREAKS
Blanket purchase agreement
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Blanket Purchase Agreements Additional Information - Header
Header Lines Price Breaks
Amount Agreed
Released
Global
Terms and Conditions
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Quiz
Blanket Releases can be created manually and automatically.
1. True
2. False
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Blanket Purchase Agreements Additional Information - Lines
Items
Price Reference
Reference Documents
More
Agreement
Header Lines Price Breaks
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Blanket Purchase Agreements Additional Information - Price Breaks
Quantity
Effective dates
Break Price
Discount (%)
Header Lines Price Breaks
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Blanket Purchase Agreement
• Amount Agreed $5,000,000
• Effective Dates Jan 1 to Dec 31
Amount Not Released Amount Released Expiration
50% in the 1st six months
$2M in the 1st three months
Three months before expiration
Notification Controls
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 48
Approve Blanket Purchase Agreement
OK
Submit for Approval
Forward
Note
Approval is the last step in creating a Purchase Order.
Approve Document
X
PrintFaxE-MailEDIXML
Fax NumberE-Mail Address
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 49
Blanket Purchase Agreement and Blanket Releases
Blanket Purchase Agreement
Release #/$sCumulative Release $s
#101 $ 5,000 $ 5,000
#120 $12,000 $17,000
#208 $ 9,000 $26,000
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 50
Blanket Releases Structure - Header
Shipment 1
Release Header
Distribution 1 Distribution 2
Blanket # Release # Supplier/Site Buyer Status Total Acceptance Req’d
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Blanket Releases Structure Shipments and Distributions
Tabbed Regions Destination
More Project
Tabbed RegionsShipments More
Status Item
Shipment 1
Release Header
Distribution 1 Distribution 2
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Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create global agreements
• Create planned purchase orders
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key standard reports
• Understand setup options
• Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 53
When to Use a Contract Purchase Agreement
Contract Purchase Agreement:
• Terms and conditions are known
• Details of goods or services are not known
• Reference contract purchase agreements directly on standard purchase order lines
Contract purchaseagreement
Delivery 1Standard PO 1
Delivery 2Standard PO 2
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 54
Contract Purchase Agreements Additional Information Entered
Additional information is enteredfor contract purchase agreementsin the header element window.
Once the contract is approved,you issue standard purchaseorders referencing the contractthrough the Line windows/ReferenceDocuments tabbed region.
Contract Purchase Agreement
Header
Header
Line
Shipment
Distribution
Standard PO
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 55
Creating Global Contract Agreements
Global agreements are an extension of contract
purchase agreements that allow pricing to extend
outside of the operating unit.
• Begin by creating a contract purchase agreement– Select the global checkbox– Enter terms– Save the agreement
• Enable the agreement in all organizations that will use this supplier, supplier site, and item(s)
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 56
Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create planned purchase orders
• Create global agreements
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key standard reports
• Understand setup options
• Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 57
Center-Led Procurement
Vision Services R+D(Requesting Org)
SourceRequest Buy Pay
Vision Operations(GA Owning Org)
Singapore Distribution Center(Purchasing Org)
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 58
Global Agreements
Global agreements are an extension of blanket
purchase agreements that allow pricing to extend
outside of the operating unit.
• Begin by creating a blanket purchase agreement– Select the global checkbox– Enter items, pricing, and terms– Save the agreement
• Enable the agreement in all organizations that will use this supplier, supplier site, and item(s)
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 59
Global Agreements
Create global agreements to:
• Negotiate prices on behalf of multiple organizations
• Share the agreement across multiple organizations
• Process purchase orders based on the global agreement
Share Agreements
Negotiate Prices
Create Global Agreement
Buyer/Seller
Process Purchase Orders
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Creating and Using a Global Agreement
Define Local Attributes
Create Global Agreement
Create StandardPurchase Order
View and Use Global Agreement
Enable Agreement for
Multi-Organizations
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Global Agreements – Impact Areas
Global Agreements affect the following Purchasing functionality:
• Requisitions, Catalogs and Standard Purchase Orders
• Vendor based global Approved Supplier Lists
• Automatic Document Sourcing
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 62
Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create global agreements
• Create planned purchase orders
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key standard reports
• Understand setup options
• Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 63
When to Use a Planned Purchase Order
• Dates of delivery are tentatively scheduled.
• Goods to be purchased must be specified.
• Actual purchases occur when a scheduled release is issued.
Delivery 1Release 1
Delivery 2Release 2
Tentative: June 1
Tentative: July 1Planned purchase
order
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 64
Components of a Planned Purchase Order
Header
Lines
Shipment
Distribution
Scheduled release
Planned purchase order
Scheduled dates of delivery
Details of goods/servicesare known
Long-term agreement
Planned Purchase Order Information Entered
Purchasing Responsibility
(N) Purchase Orders > Purchase Orders
Most of the fields that have already been discussed during the creation of other types of purchase orders apply to the planned purchase order. The primary difference from a standard purchase order is that a delivery schedule is entered and the actual purchase order is created by running the Create Releases process.
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 65
Planned Purchase Order Information Entered
Additional information isentered for planned purchase orders in the shipment window.
HEADER
LINE
SHIPMENTS
Planned purchase order
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Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create global agreements
• Create planned purchase orders
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key standard reports
• Understand setup options
• Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 67
Purchase Order Summary
• Use the Purchase Order Summary window– Optionally create a custom user layout of form
• Use the Tools menu to view associated– Requisitions– Receipts– Invoices– Action History
• Use the Purchase Order window– Find functionality– Query functionality
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 68
Modifying Purchase Orders
You can access and modify your purchase orders
• Reapproval Rules
• Revision numbering of purchase orders– PO #1245– PO #1245-1 1st revision– PO #1245-2 2nd revision
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 69
Printing Purchase Orders
• Only approved purchase orders can be printed
• From the Submit for Approval window:– Default communication method checked according to
supplier definition
• Select the Printed Purchase Order report from the Reports menu
Printed purchase order
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Creating Purchase Order Revisions
Two Archiving options
At the time of approval
At the time of printing
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Document Publishing
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Archiving Purchase Orders
Step 1: Create/save PO
Step 2: Approve PO
Step 3: Change quantity
Step 4: Reapprove PO
Step 5: Print PO
Step 6: Add an item
Step 7: Reapprove PO
Step 8: Print PO
None
0
0
1
1
1
2
2
0
0
1
1
1
2
2
2
ActionArchiveRevision
CurrentRevision
ArchiveRevision
CurrentRevision
Approval Printing
None
0
0
0
0
0
1
1
0
0
0
0
0
1
1
1
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 73
Purchase Order Statuses - Typical Cycle
No
Submit for Approval
In Process
Approve?
Approved
Changes Made
Rejected
Incomplete
Canceled
Closed
Requires Reapproval
Finally Closed
On Hold
Frozen
Pre-Approved
Approve?Yes
No
Yes
Open
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Entering Purchase Order Acceptances
• Action
• Action Date
• Accepted By
• Accepted
• Acceptance Type
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Workflow Notifications
REQ#583 Joe Holt Rejected
REQ#577 Sue Smith
Requires Reapproval
PO#325 Kevin Jones Incomplete
Electronic notification
PO#325 requires your attention. Its status is Incomplete. Kevin
Joe
Sue
Electronic notification
REQ#577 requires your reapproval.
Electronic notification
REQ#583 has been rejected.
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 76
FROM TOStandard purchase order Standard purchase order
Blanket purchase agreement Blanket purchase agreement (standard or global)
or RFQPlanned purchase order Planned purchase order
Bid quotation(Bid quotation class)
Standard or planned purchase order
Self-defined bid quotation (Bid quotation class)
Standard or plannedpurchase order
Catalog or standard quotation (Catalog quotation class)
Blanket purchase agreement
Self-defined catalog orstandard quotation
(Catalog quotation class)
Blanket purchase agreement
Global agreement Global agreement
Copying Purchase Orders
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Services Procurement
Services Procurement:
• Automates procure to pay flow from requisition creation to sourcing to payment
• Supports integration with Human Resources Management, Time and Labor, and Project Management
• Enables you to perform business tasks such as:– Assigning time cards to multiple projects– Assigning more than one purchase order to a contingent
worker– Creating time cards for multiple purchase orders
• Uses Oracle Purchasing data to convert approved service requisitions into purchase orders
• Automatically creates invoices from service receipts
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 78
Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create global agreements
• Create planned purchase orders
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key standard reports
• Understand setup options
• Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 79
You may need to import purchasing documents from sources outside of Oracle Purchasing:
• Purchasing Document Open Interface
You may need to update existing purchasing documents from one of your custom created programs:
• Purchasing APIs
Purchase Document Interfaces
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Purchasing Documents Open Interface
Blanket purchase agreement lines
Openinterface
Workflow
Catalog quotations
StandardPO
X12 832, 843
Documents Items Sourcing rules
Load1
Process2
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Purchase Document Import Validation
The import process derives some details if they are not already provided.
Options Item master Supplier
Document detail
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Purchasing Open Interface Tables
Interface Data Flow Table, Table, View, or Module nameName Direction View, or
Process
Requisitions Inbound Table PO_REQUISITIONS_INTERFACE_ALL
PO_REQ_DIST_INTERFACE_ALL
Purchasing Inbound Table PO_HEADERS_INTERFACEDocuments PO_LINES_INTERFACE
Receiving Inbound Table RCV_HEADERS_INTERFACE RCV_TRANSACTIONS_INTERFACE
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 83
Purchasing APIs
Application program interface (API) is a software transaction connector for a specific function within Oracle Purchasing:
• Purchasing Order Change API
• Cancel Purchase Order API
• Custom Pricing API
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 84
Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create global agreements
• Create planned purchase orders
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key standard reports
• Understand setup options
• Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 85
Purchase Order Reports
• Blanket and Planned PO Status Report
• Canceled Purchase Orders Report
• Contract Status Report
• Open Purchase Orders Report (by Buyer)
• Open Purchase Orders Report (by Cost Center)
• Printed Change Orders Report (Landscape)
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Purchase Order Reports
• Printed Change Orders Report (Portrait)
• Printed Purchase Order Report (Landscape)
• Printed Purchase Order Report (Portrait)
• Purchase Agreement Audit Report
• Purchase Order Commitment by Period Report
• Purchase Order Detail Report
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Purchase Order Reports
• Purchase Order Distribution Detail Report
• Purchase Order and Releases Detail Report
• Purchase Summary Report by Category
• Purchasing Activity Register
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Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create global agreements
• Create planned purchase orders
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key standard reports
• Understand setup options
• Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.1 - 89
Important Purchasing Options
Price Tolerance
Enforce Price Tolerance
Amount Tolerance %
Cancel Requisitions
Enforce Buyer Name
PO Output
Minimum Release Amount
Price Break Type
PO Number
- Entry
- Type
- Next Number
Control Default Numbering
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Important Profile Options
Current Price Adjusted Price % IncreaseApproved with 3% Price Tol
$ 2.00/each $ 2.05/each 2.5% Yes
$10.00/each $14.00/each 4% No
PO: Archive Catalogon Approval
PO: Price Tolerance (%) for Catalog Updates
PO: Change Supplier Site
Original Changes
Blanket #901? OR Blanket #901/Rev #1?
Site A Site B
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PO Communication Profile Options
• PO: Secondary E-mail Address
• PO: In File Path
• PO: Terms and Conditions File Name
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Other Setups
• Buyers
Buyers
Jane
Mike
Bill
Buyer Name
Buyer List
Purchase Order
• Hazard Classes
• UN Numbers
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Transaction Delivery Setup
There are several options available for delivery of Oracle Purchasing documents to the supplier.
• Print and deliver
• Fax (Facsimile)
• E-Mail (Electronic Mail)
• EDI (Electronic Data Interchange)
• XML (eXtensible Markup Language)
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Printed Purchase Orders
Standard text based or fully formatted PDF files:
• Standard text can be customized to print on pre-printed forms using Oracle Reports
• PDF output:– Configure format templates by organization or document
type– Include watermarks or logos– Approval preview– Communicate using email or mail– View revisions in PDF
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Purchasing Document Fax Setup Overview
Oracle ERP applications
server
Fax server Supplier
FCL Fax
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Purchasing Document E-Mail Setup Overview
Supplier receives purchase
order
Internet
PO Create Documents
and Workflow
mailer
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Oracle e-Commerce Gateway Overview
Supplier’s EDI translator
Value Added Network (VAN)
Buyer’s EDI translator
Oracle Applications
Supplier’s application
server
Supplier
Buyer
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Purchase Order EDI Transactions
• Outbound:– Purchase Order (850/ORDERS)– Purchase Order Change (860/ORDCHG)
• Inbound:– Price/Sales Catalogue (832/PRICAT)– Response to Request for Quotation (843/QUOTES)
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Oracle XML Gateway Overview
Supplier receives purchase
order
Buyer sends
purchase order
Oracle XML
Gateway
Oracle Transport
Agent
XML Parser
Transport Layer
XML document sent through Internet hub (like Oracle Exchange) or direct through secure Internet connection
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Purchase Order XML Transactions
Purchase orders can be sent to a supplier using the following XML transactions:
• Purchase Order (PROCESS_PO_007)
• Release against Blanket PO (PROCESS_PO_007)
• Purchase Order Change (CHANGE_PO_006)
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Retroactive Price Changes
How to setup:
• Profile Option PO: Allow Retroactive Pricing of POs
• Set Archive on Approve for document
How to use:
• Update pricing information on agreement
• Choose Retroactive Pricing options before submitting the document for approval
• Optionally run Retroactive Price Update of Purchasing Documents process
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Agenda
• Overview of purchase orders
• Create standard purchase orders
• Create blanket purchase agreementsand releases
• Create contract purchase agreements
• Create global agreements
• Create planned purchase orders
• Maintain/adjust purchase orders
• Purchasing Document Interfaces
• Identify key reports
• Understand setup options
• Review additional implementation considerations
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Responsibility for Purchase Order Entry and Maintenance
• Assign responsibility for purchase order entryand maintenance
• Number of staff required when operational
• Consider good internal control and segregationof duties
4 BuyersCreate PO’s
Update status
2 Jr. Buyers Supplier Inquiry
Research past due shipments
1 Clerk Updates
POcontacts
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Purchase Order Integration Issues
• Who is affected by purchase orders?
• Document decisions with sign-off byAuthorized Approver
Purchasing Inventory Mfg Planning Receiving
Payables Assets Accounting
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Creating Purchase Orders and Releases
REQ#963
REQ#981
REQ #978
8 doz pens 1 chair
3 doz pens 2 bxs clips 1 waste can
1 copier - trade-in
Purchase Order #1219
Release #1201
11 doz pens 1 chair 2 bxs clips 1 waste can
1 copier - trade-in
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Purchase Order Numbering Options
• Two choices– Automatic (numbers only)– Manual (alphanumeric or numeric)
• Switch from manual to automatic– Ensure that Next Automatic Number is larger than the
largest number assigned
Automatic 2114 2115
2116
2117
Manual A-103 B4326
A-103-2
99
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Purchase Order Conversion Methodology
• Purchasing Documents Open Interface
• Which purchase orders to convert
• Method to convert
• Data cleanup required prior to conversion
• Conversion reconciliation method andreports needed
AutomatedClosed Open
Open
Manual Entry
IBM
Tile Co
Interface
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Electronic Transaction Delivery
Considerations for electronic delivery of Oracle Purchasing documents to the supplier.
• Fax (Facsimile)
• E-Mail (Electronic Mail)
• EDI (Electronic Data Interchange)
• XML (eXtensible Markup Language)
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Integrated Oracle Products
Consider the possible implications of using other Oracle self service products to enhance the purchase order business process:
• Oracle iProcurement– Automate common purchases– Self service ordering and receiving
• Oracle iSupplier Portal– Supplier self service acknowledgements– Supplier self service quotations
• Oracle Sourcing– Supplier driven auctions
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Summary
You should now be able to do the following:
• Create standard, blanket, global, and contractpurchase documents
• Create blanket purchase agreement releases
• Maintain purchase orders
• Identify key reports
• Understand setup options
• Understand additional implementation considerations