49241169-iproc-PPT

Confidential © Sierra Atlantic, Inc.

Oracle iProcurement


Overview Prerequisites Setups Creating Requisitions Managing Requisitions Desktop Receiving Catalog Management Work Flow Process

Agenda


Overview of iProcurement


Essentially, it supports the procure-to-pay process inan organization’s purchasing function.

How Does Procurement Typically Work?

Requisition Approvals Orders Receiving Payment

Overview


Typical Procurement Issues

• Lack of procurement information

• Minimal coordination of common purchases across

organizations

• Scarcity of formal contracts - few long term agreements and

blanket orders

• Small number of strategic partners

• Large amount of complexity - many people involved

• Lack of standardization - processes, systems

Internet Procurement allows organizations to perform

the procurement activity electronically over the

internet, using a suite of products.

Overview


PurchasingProcess

iProcurement

Enter requisition online using web forms and

catalogs

Workflow approval

Supplier notified and delivers directly to the

Requestor

Record receipt on the web

Overview


Overview


• Oracle Internet Procurement provides an intuitive, web

shopping interface.

• With a web browser, quickly find goods and services, add

them to the shopping cart, and simply checkout.

• Available capabilities are: web shopping experience, next generation catalog engine, complete catalog and content management,

streamlined order placement processes.

iProcurement – Key Features

Overview


• Web shopping experience allows: First time, untrained requesters to easily find desired items or

services, (large number of users) Express Checkout enables repeat users to handle checkouts in

one step Power Checkout enables the ultimate item level control and

flexibility, so frequent users can quickly edit or copy multiple

lines

• Next Generation Catalog Engine Search capabilities optimized for self-service deployment.

• Combines the advantages of text search, parametric search, and

categorization, the new search capabilities perform as people

think.


Overview


• Complete Catalog and Content Management

Simplified XML catalog and spreadsheet data loads. Search for products and services in a single unified catalog. Seamless integration with supplier sites and market places such

as TPN Register’s

• Streamlined Order Placement - Three options for ordering

items as part of the ‘Go Shopping’ function: Step-by-Step Checkout, Express Checkout for repeat users, Power Checkout for frequent users.


Overview


• Streamlined Order Placement - Shopping Shopping Lists Copy Orders Service requests Non Catalog Requests Automatic Document creation


Overview


• Streamlined Order Placement - Billing Procurement Card Purchases for Catalog Orders Oracle Projects Integration Tax Exempt Purchases Multiple Account Distributions and Account Generation

Workflow Integration Multi-Currency Enhancements

• Streamlined Order Placement Notes - Additional Item Information, Upload and View

Attachments Approvers - Approval Routing Configuration, Vacation

Scheduling Review/Submit, Cancellations


Overview


• Desktop Receiving Requesters can receive orders in iProcurement and confirm

receipt of requested goods and services. iProcurement automatically records the receipt transaction.


Overview


Prerequisites for iProcurement


• Oracle Core Purchasing setups

- Jobs, Positions, Employees, Hierarchy, Approval groups,

Assignments, Item categories, Buyers, Purchasing / Financial /

Receiving options etc.

• Items availability in iProcurement from :

-Internal Catalog: Items assigned to categories which have the

attribute iProcurement check box as enabled and ‘Web Enabled’

as ‘Yes’ in Category Descriptive Flexfield

or / and

External Catalog: Managed by Supplier / Third Party / Self

Prerequisites


Setups of iProcurement


1 Descriptive Flexfield for Item Categories Required

2 Configure Account Regions Required

2 Define Information Templates Optional

3 Define Realms Optional

4 Set Up Procurement Cards Optional

5 Set Up Attachments Optional

6 Set Up Profile Options Required

7 Enable Function Security Optional

Setups


• Descriptive Flexfield for Item Categories Enable descriptive flexfield “Item Categories” Label segment “Use with iProcurement” or something similar Choose Attribute10 from external sources Enter a value ‘Y’ for the item categories (the Items belonging to these

categories only are available in iProcurement).

• Information Templates Are setup in Oracle Purchasing for capturing additional information in

iProcurement Used to pass required information to the supplier Each Information Template must be associated with an item or a category

Setups


• Realms A realm is a set of access privileges A realm is used to control access to internal catalog content / external

source at the user level

• Procurement Cards Procurement cards (P-Cards) are setup with Accounts Payable and can be

used for iProcurement requisitions Define which users are allowed to use procurement cards

• Attachments iProcurement allows attaching of additional information to the

requisitions (Types: File, URL, or Note) Type of note determines who will be allowed to see the note

Setups


• Profile OptionsICX: Allow Funds Override

Indicates whether a requestor can override

their allowed funds, if encumbrance is enabled.

ICX: Date Format Mask

Determines the date format.

ICX: Days Needed By Sets the number of days until the user needs

to receive

an order.

Setups


• Profile OptionsICX: Language

Determines the language.

ICX: Limit Connect

Sets the maximum number of page hits per

session. Set the value to 1000.

ICX: Limit Time Determines the maximum time limit a user can

be logged into the system. Default is 4 hours.

ICX: LOV Type

Should always be set to “HTML”.


• Profile OptionsPOR: Approved Pricing Only

Restricts user access to only those items

associated with contracts or templates.

POR: Goods Line Type

Determines line type for goods type non-catalog

order.

POR: Rate Based Services Line Type Determines line type for rate-based Service

type non-catalog orders. A rate-based Service is

a monetary charge per four, day, and month.


• Profile OptionsPOR: Edit Accounts Region

Enables the user to support multiple chart of

accounts.POR: Multiple Accounts Region

Enables the user to support multiple chart of

accounts.


• Function Security iProcurement allows assignment and modification of

responsibilities to control users access If the responsibility is not secured the functions allow the user to

see all the data within the Web page that is brought up If the responsibility is secured, additional security checks are

made to determine which data, if any, is displayed by its functions Securing attributes are used to control the data that is displayed


Creating Requisitions in iProcurement


Why Purchase Requisitions?

• Purchase requisitions allow decentralisation of requisitioning

of goods and services

• Purchase requisitions allows users to source the requisition

with the best suppliers and at the lowest cost

• Purchase requisitions ensure that the appropriate

management approval is given before purchase orders are

created

Creating Requisitions


Purchasing Process Overview..

Business Needs Associated with Purchase Requisitions

• Automate the procurement process

• Monitor and control spending amounts by approval

authorizations

• Simplify the interaction with suppliers

• Free buyers from daily transactions to focus on negotiation

management and supplier analysis

• Reduce administrative costs and inefficiencies


Overview of Purchase Requisition Creation

Choose items orenter lines

Catalogs

Shopping lists

Purchase Requisition

Non-catalogrequest


Overview of Obtain and Grant Requisition Approvals

• View, modify, approve and forward documents

• Respond to notifications via the Notification Viewer, web or e-

mail

• Control approvals by amount, cost center, account

• Control requisition approval routing according to

management structure

• Reassign or forward requisitions for approval if approver is

not available or on vacation

• Route requisition to next approver when timely response is not

received


Creating and submitting purchase requisitions

The iProcurement Home Page offers one click access to:

• Initiate the creation of a requisition

• Search for or select items to order from the catalog or a

supplier site

• View and respond to notifications

• View the status of requisitions


Requisition Creation Flow

Log into iProcurement

Find

itemsAdd items

Edit shopping cart

Submit requisition

Proceed to Checkout

Proceed to Checkout

Checkout

Review requisition


Streamlined Order Placement

Find Items

Add to shopping cart

Step-by-Step Checkout

Express Checkout

Power Checkout


Find Items

• Search for Items

Combine text search, parametric search, and categorization Search by:

– Part number

– Description

– Supplier

– Price

– Currency

• Browse Categories Browse categories and select items Access to different categories can be assigned to each user

• Shopping lists Personal - My Favorites Corporate - Public


Shopping at Supplier Sites

• You can shop for items from a supplier web site that your

company has an arrangement with

• To requisition an item off of a supplier site, you will need to

click on the link to the supplier site from your Home Page or

the Shopping Page


Non-Catalog Requests

• Used to requisition items that are not in the catalog

• Used to order the following types of items:

Goods billed by quantity (per unit)

Service billed by quantity (rate)

Goods or services billed at a fixed amount

• Mandatory information required:

Enter basic information about the item (description, uom, price)

Associate it to a category

Optionally designate a supplier for the item


Shopping Cart

• Contains items that you have selected to order in the current

session

• You can update the quantity of line items

• Recalculates your requisition total as you select or delete items

• You can save the contents of the shopping cart to order items

at a later time

• Additionally,

View item images, if available

Enter Special Item Information, if required as per the setup


Checkout

• A process for completing shopping cart orders

• You can verify your order and update delivery and billing

information

• There are different levels of checkout to meet the needs of

different experience levels:

Step by Step

Express

Power


Checkout: Step-by-Step

Shopping

Delivery

Billing

Notes

Approvers

Review/Submit


Checkout Information• Delivery stage

Date on which the items are required to be delivered Requester Location to deliver to Different delivery information for each line item A one-time address

• Billing stage Procurement card Taxable status Project to bill to Different billing information for each line item Multiple charge accounts for a single line item

• Procurement cards (p-card) are corporate credit cards assigned to an employee to use when requisitioning items from suppliers

• Automatically flags shopping cart lines for p-card payment and defaults in the appropriate p-card number

• After approval and purchase order creation, a p-card order is generated and transmitted to the supplier


Checkout Information

• Notes stage Description for the requisition Notes to the buyer and approver Attachments

• Approval stage Review list of approvers Specify additional approvers * Change first approver * Delete non-mandatory approver * Add note to approver Attach justification attachment

* Note: These functions will be available / unavailable as per the security setup


Checkout Information

• Review / Submit stage View the details of the requisition before submitting it Submit the requisition for approval Resubmit a rejected or returned requisition


Shopping

Delivery

Billing

Notes

Approvers

Review/Submit

Shopping

Review/Submit

ExpressCheckout

Step-by-Step Express Checkout

Express Checkout


Express Checkout

• Quicker, more convenient checkout

• Checkout is completed in one step

• Targeted to users who do a high volume of requisitions

• Uses default delivery and billing preferences specified in My

Profile page • Setup default delivery and billing information so it defaults when

creating requisitions

• Speeds up the requisition process

• These values are updateable during the requisition process

• During express checkout, enter:

Need-by date

Requisition description

Notes to buyer and approvers


Power Checkout

Shopping

Delivery

Billing

Notes

Approvers

Review/Submit

Shopping

Review/Submit

ExpressCheckout

Shopping

Review/Submit

PowerCheckout

Approvers

Step-by-Step Express Checkout Power Checkout


• Used for large requisitions where billing and delivery

information is not the same for each line

• Update an individual line or a group of lines

• During power checkout: Enter/update all the information available during the step-by-step

process Review and edit approvers similar to step-by-step checkout

Power Checkout


Managing Requisitions in iProcurement


• Viewing requisitions

• Copying requisitions

• Canceling requisitions

• Withdrawing requisitions

• Resubmitting requisitions

• Approving Requisitions

Managing Purchase Requisitions


• To view most recent requisitions select: Requisitions at a Glance on home page or Requisition Status tab

• View Requisition Requisition status Approval history Requisitions created by others in your group

Viewing Requisitions


Copying Requisitions

• Copy requisitions of any status from the Requisition Status

page

• Copying a requisition copies the items from the original

requisition into a shopping cart


Canceling Requisitions

• Requisitions that have been submitted for approval can be

‘Cancelled’ from the Requisition Status page

• The following rules apply to canceling requisitions: Cancel requisitions of any status Cannot cancel individual requisition lines * Cannot cancel requisitions once it has a line converted to a

purchase order

*Note: To cancel individual lines, use the withdraw feature


Withdrawing Requisitions

• Requisitions that have been submitted for approval can be

‘Withdrawn’

• The Withdraw button is available: From the Requisition Status page From the requisition details page

• Withdrawn requisitions are no longer available on the

approver’s notification list

• Withdrawn requisitions can be: Moved back to the shopping cart Canceled


Approving Requisitions

• Requisitions that have been submitted for approval are

available in Home Page in ‘To-Do List’ or in

Notifications window (under Requisition Status)

for necessary action.

• Valid Actions are: approve the requisition, approve and forward the requisition to another approver, reject the requisition, reassign the requisition.


Editing Requisitions before Approval

• Approver can make changes to requisitions that are waiting

for approval before submitting them for approval

• Approver can add new items delete existing items, change item quantities.


Receiving in iProcurement


Receiving Orders

• Receiving of goods and services can be done in either Oracle

Purchasing and iProcurement

• Receiving represents the final step of the ordering process: Records receipt of goods and services Initiates the payment process


Receiving Orders

• Receiving of goods and services can be done in either Oracle

Purchasing and iProcurement

• Receiving represents the final step of the ordering process: Records receipt of goods and services Initiates the payment process


Overview of Receipt Types

Direct

Destination type: Inventory, Expense, or Shop Floor

Standard

Destination type: Receiving

Finaldestination

InspectionInspectionInspection

Finaldestination

Receive

LocationLocationLocation


iProcurement Receiving

Features of receiving orders in iProcurement:

• The requisitioners are allowed to receive at their desktop from

the browser

• Requesters can view and receive orders in a simple, workflow-

driven self-service interface.

• Requesters can review the order details and confirm receipt of

requested goods and services.

• iProcurement automatically records the receipt transaction.

• Requesters can optionally enter additional information like

packing slip number, waybill/airbill number, etc.


iProcurement Receiving

Features of receiving orders in iProcurement:

• The requisition is required to have a purchase order or

blanket release associated with it to be received

• The routing of the item to be received must have been set to

Direct Delivery


Centralized Receiving Functions

• All iProcurement receiving functions are located on the Receiving

page

• From the Receiving home page a Requisitioner can: Receive Return Correct View receiving transaction history

*Note: In iProcurement receiving, a Requisitioner can transact someone else’s items

also Access for the Requisitioners can be restricted to only their items by excluding

the above functions from the respective Internet Procurement responsibility


Catalog Management


• iProcurement uses a simple, web-based graphical interface to

create requisitions using catalog data from internal and

external sources.

• Oracle Internet Procurement 11i supports multiple sources for

item selection. Items may be selected from catalogs: from internal sources from external sources hosted by suppliers and marketplaces

Catalog Types


• Items and categories in Oracle Applications can be loaded

into Oracle Internet Procurement 11i catalogs. The extracted

purchasing data includes: Items from the Master Organization Requisition Templates Blanket Purchase Agreements Catalog Quotation information Approved Supplier Lists

Loading Catalog Data From Internal Sources


Loading Catalogs: Concurrent Programs

• Catalog Extract Data-Classifications Extracts categories in Purchasing Default Category Set Also extracts Requisition Template names defined in Oracle Purchasing

• Catalog Extract Data-Items Oracle Inventory Master Items Oracle Purchasing Blanket Purchase Orders and Catalog Quotation lines Requisition Template lines

• Catalog Data Purge Inactive Blanket Agreements Inactive Quotations Inactive Items Inactive Requisition Templates


• Catalogs from external sources may be provided by a

supplier or by companies that provide third party content

management services

• Catalogs from these sources are loaded onto iProcurement

via XML files or spreadsheets

• Templates and instructions that help create these catalog files

can be downloaded from the eContent Manager of Oracle

iProcurement 11i.

Loading Catalog Data From External Sources


• A Supplier Hosted catalog is maintained by a third-party

supplier

• Marketplace catalog is maintained by a third party catalog

provider

• Users navigate these catalogs through a web page link, via

their corporate firewall, before returning to iProcurement to

complete their requisition.

Catalogs Hosted by Suppliers/Marketplace


Externally Hosted catalog

iProcurement

Firewall

1. User selects link to external catalog

2. External catalog asks iProcurement (using the

secure authentication server) to authenticate the

user.

3. iProcurement responds to the request with an

XML document indicating whether user was

successfully authenticated

4. User then shops at external site, selects items

and finally indicates they are ready to add items

to their requisition.

• External catalog then transmits items to iProcurement where they are converted to requisition lines.

1 2 3 4

Catalogs Hosted by Suppliers/Marketplace


Workflow Processes in iProcurement


• PO Requisition Approval Workflow

• PO Create Documents Workflow

• PO Confirm Receipts Workflow

• PO Account Generator Workflows

Workflow Processes