Purchasing

Oracle Purchasing Overview

Overview

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R12 Oracle Purchasing

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Procure to Pay: Procurement

Procure to Pay: Procurement

Oracle Purchasing provides the functionality to complete the procurement or ordering portion of the Procure to Pay process.



Objectives



Agenda



Overview of the Ordering Process

Overview of the Ordering Process

The ordering 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 ordering 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. Oracle 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. Oracle Purchasing uses the Account Generator workflow to create the distribution automatically whenever possible.

• Provide attachments as notes on transaction headers and lines.



Demand as Requisitions

Demand as 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 Purchasing 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 Oracle ASCP/MRP (planning applications) to generate requisitions based upon the planning requirements of your organization. Oracle Inventory can generate requisitions based upon replenishment requirements. Outside processing requirements can be generated into requisitions by Oracle Work In Process. Oracle Order Management generates requisitions based upon the need to drop ship goods to customers directly from your 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 your own company.

With Oracle Purchasing and Oracle 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).

• Transfer requisition information to the purchase order documents using automated processes.

With Oracle Purchasing you can import requisitions from other systems such as material or distributions requirement planning applications and legacy systems.



Requisition to Purchase Order

Requisition to Purchase Order

If your ordering process begins with a requisition, that document must be transformed within Oracle Applications into either a Purchasing Document that is sourced externally or an Internal Sales Order that is sourced internally.

AutoCreate

The AutoCreate process in Oracle Purchasing 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 Oracle Order Management application for fulfilment via the Create Internal Sales Orders process.



The Purchase Order Process

The Purchase Order Process

The creation of the purchasing document marks the beginning of the required steps within the ordering process. Oracle 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 Oracle Purchasing you can:

• Review all of your purchases with your suppliers to negotiate better discounts.

• Create purchase orders simply by entering a supplier and item details.

• Create standard purchase orders and blanket releases from both on-line and paper requisitions.

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

• Check your funds availability while creating purchase orders.

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



• Print purchase orders flexibly by using a number of print options.

• Inform your suppliers of your shipment schedule requirements.

• Record supplier acceptances of your purchase orders. You always know whether your suppliers have received and accepted your purchase order terms and conditions.

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

• Copy existing purchase orders.

• Leverage global supplier negotiations for all your business units.

• Using the close integration with Oracle Procurement Contracts, your buyers can author and manage contractual terminology from a library of approved terms.



The Receiving Process

The Receiving Process

Oracle Purchasing lets you control the items you order through receiving, inspection, transfer and internal delivery. These features allow you to indicate the quantity, quality and internal delivery of the items you receive.

With Oracle Purchasing/iProcurement you can:

• Use routing controls at the organization, supplier, item, or order level to enforce material movement through receiving. For example, you can require inspection for some items and dock-to-stock receipt for others.

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

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



payment. Choose the four-way match approval level if you require inspection and acceptance of receipts before authorizing payment.

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

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

• Track, update, and record the receipt of intransit and inter-organization shipments.

• Record receipt of unordered items based on your item, supplier, or organization defaults. For example, if your organization does not allow receipt of unordered items, you should not be able to enter a receipt unless it is matched to an order shipment.

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

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

• Distinguish closed for invoicing from closed for receiving. Purchasing automatically closes your purchase order for receipt when it is fully received. You can manually close partially received purchase orders if you no longer expect any more receipts against them. Close for invoicing and close for receiving are managed using tolerances. You can specify that when you have received a certain percentage of a shipment, Purchasing will close the receipt. This is a soft close, and you can reopen the receipt. Oracle 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. Oracle Purchasing uses perpetual accrual for your inventory and shop floor item receipts. Oracle 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. Oracle Purchasing automatically records your accrued liability in your general ledger as you enter receiving transactions. Oracle 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. Purchasing also provides you with the information you need to facilitate your period close and your inventory, purchasing, and payables reconciliation process.

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

• Define which of your items require inspection. Oracle 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. Oracle 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.



Center-Led Procurement

Center-Led Procurement

In many enterprises the requisitioning, sourcing, ordering, and payment activities are all performed in the context of a single business unit and transactions do not cross business unit boundaries. Oracle Purchasing supports that but can also free enterprises to perform their procurement activities irrespective of business unit boundaries. Requisitions that are raised in one business unit can reference source documents and be placed on purchase orders in another business unit taking advantage of supplier negotiations.

The purpose of using a shared service center is for the enterprise to not only source globally but also be able to identify business unit specific procurement practices. Within Oracle Purchasing this is done by enabling the global agreements only for the business units that need to use them.



Agenda



Purchasing Integration

Purchasing Integration

Oracle Purchasing both integrates with and depends on other Oracle Applications. It is important that implementers understand which products provide required support, what the integration points are, and which products are used to enhance the procurement process using Oracle Purchasing.



E-Business Foundation

E-Business Foundation

Oracle General Ledger

• Ledgers

• Exchange rates

• Accounting flexfield

• Currency

• Charge Account Combinations

Oracle Human Resources

• Employees (Requestors and Buyers)

• Locations (Receiving)

• Organizations (Receiving)

• Hierarchies (Approval)

Oracle Inventory

• Items

• Demand



• Receipts

Oracle Payables

• Accounting for matched purchase orders

• Suppliers

• Procurement cards

• Purchase orders

Oracle Order Management (not shown)

• Required for internal requisitions



Purchasing Integration with General Ledger

Purchasing Integration with Oracle 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.



Purchasing Integration with Human Resources

Purchasing Integration with Oracle Human Resources

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



Purchasing Integration with Payables

Oracle Payables Integration with Oracle Purchasing

Match and Update Qty Billed (1)

Enter an invoice and match it to a purchase order to update the quantity billed against the purchase order.

Copy Accounting (2)

During the match process, accounting stored with the purchase order distribution is copied to the invoice.



Purchasing Integration with Inventory

Purchasing Integration with Oracle Inventory

Inventory 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.

Reorder Point Planning, Replenishment Count, and Kanban Planning are some other Oracle Inventory planning methods that can create a requisition.

Requisition Import (2)

Use the Requisition Import process to import Inventory requisitions. 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.



Applications Technology Foundation

Applications Technology Foundation

Oracle Alert

• Expiration alerts

• Release alerts

Oracle Workflow

• Approval process

• Account Generator

• Document creation

• Notifications

Oracle BI Publisher

• Purchase order layout templates in XSL-FO, RTF, or PDF formats

• PDF purchase orders online, email, or fax

Oracle 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)

Oracle AME (Approval Management Engine)

• Extensible approvals rules for requisitions

Oracle XML Gateway

• New purchase order (standard, release)

• Change purchase order (standard, release)

• Advance shipment notices (ASNs)



Purchasing Integration with Oracle Alert

Purchasing Integration with Oracle Alert

Oracle Alert facilitates the flow of information within your organization by letting you create entities called alerts to monitor your business information and to notify you of the information you want. You can define one of two types of alerts: an event alert or a periodic alert. You can define a variety of actions for Oracle Alert to perform based on the exceptions it finds in your database. Oracle Alert can send an electronic mail message, run a SQL script or an operating system script, or submit a concurrent request, or any combination of the above.

Oracle Alert offers predefined periodic Purchasing alerts to identify the following database exceptions:

• Approved Standard Purchase Orders

• Blanket Purchase Releases over Threshold

• No Receipt Required on Purchase Order Shipment

• Small Business Suppliers

• Standard Purchase Order over Threshold

• Blanket Purchase Releases over Threshold

• Suppliers on Hold



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

• Notification Expiration

• Notification Not Released

• Notification Released



Purchasing Integration with Oracle Workflow

Purchasing Integration with Oracle Workflow

Oracle Workflow delivers a complete workflow management system that supports business process based integration. Its technology enables modeling, automation, and continuous improvement of business processes, routing information of any type according to user-defined business rules.

Workflow Major Features

• Workflow Builder

• Workflow Engine

• Business Event System

• Programmatic Extensibility

• Workflow Definitions Loader

• Electronic Notifications

• Electronic Mail Integration

• Digital Signatures

• Worklist Flexfields

• Monitoring and Administration



Requisition Approval

The PO Requisition Approval workflow is used for approving requisitions.

Purchase Order Approval

The PO Approval workflow is used for approving purchase orders.

Approve Change Orders

The Change Order workflow is used for controlling which changes to purchase orders require a manual reapproval and which are automatically reapproved.

Create Purchase Orders and Releases

The PO Create Documents workflow for automatically creating purchase orders and releases.

Confirm Receipts

PO Confirm Receipts workflow for sending receipt notifications to requesters or buyers notifying them that they should have received their order.

Send Notifications

PO Send Notifications for Purchasing Documents workflow for looking for documents that are incomplete, rejected, in need of reapproval, or approaching expiration and sending notifications to the appropriate people.

Price/Sales Catalog

PO Catalog Price Tolerance Exceeded Notifications workflow for sending a notification to the buyer when the price/sales catalog information sent through the Purchasing Documents Open Interface includes price increases that exceed a price tolerance that you set.

Generate Accounting

The PO Account Generator workflow and the PO Requisition Account Generator workflow are used for generating Budget, Accrual, Charge, and Variance account combinations.



Purchasing Integration with e-Commerce Gateway

Purchasing Integration with Oracle e-Commerce Gateway

Oracle Applications provides the ability to conduct business electronically between trading partners based on Electronic Commerce standards and methodology. One form of Electronic Commerce is Electronic Data Interchange (EDI). EDI is an electronic exchange of data between trading partners. Interface data files are exchanged in a standard format to minimize manual effort, speed data processing, and ensure accuracy.

Oracle Purchasing integrates with Oracle 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).



Procurement Suite

Procurement Suite

Oracle iProcurement

• Internet shopping experience for enterprise ordering

• Flexible catalog management from internal or external sources

• Seamless punchout to supplier hosted catalogs

• Easy to use tools for order tracking and management

• Desktop receiving

Oracle Services Procurement

• Contingent labor procurement

• Integrates Oracle Time & Labor (OTL) for payment through Oracle Payables

• Supports Complex Work projects

Oracle Procurement Contracts

• Terms library authoring and management

• Deliverables tracking

Oracle iSupplier Portal (iSP)



• Record purchase order acknowledgments

• Reschedule Promised-By dates

• View purchase order and revision history

• View RFQs

• View expected deliveries

• Create and view ASNs and ASBNs

• View receipts, returns and overdue receipts

• Set processing lead time, minimum order quantities and fixed lot multiples

• View invoice and payment information

Oracle Sourcing

• Collaborative RFQs

• Negotiate all aspects of the transaction

• Auctions

Oracle BI for Procurement

• Business Intelligence reports for Oracle Procurement

• Role-based performance overviews

• Interactive summarization of buyer and supplier performance

Oracle Supplier Network

• Rapid supplier enablement

• Pre-defined electronic messaging connectivity

• Purchasing and Payables’ XML documents



Purchasing Integration with Oracle iProcurement

Purchasing Integration with Oracle iProcurement

Oracle Purchasing provides the working foundation for the Oracle iProcurement application. Oracle iProcurement enhances Oracle Purchasing by providing a simplified self service requisition entry interface, requisition management, purchase order inquiry, and desktop receiving. Built into Oracle iProcurement is a flexible catalog management tool for administrators and the capability to configure internet linking to a supplier hosted catalog.



Purchasing Integration with Oracle iSupplier Portal

Purchasing Integration with Oracle iSupplier Portal

Oracle iSupplier Portal provides a self service internet based tool that gives your suppliers access to information in Oracle Purchasing.

View document Information

• View agreed amounts and released amounts for blanket purchase agreements

• View purchase order and revision history

• View RFQs

Update system information

• Record purchase order acknowledgments

• Reschedule Promised-By dates

• Create and view ASNs and ASBNs

• Set processing lead time, minimum order quantities and fixed lot multiples

View receiving information

• View expected deliveries

• View receipts, returns and overdue receipts



• View quality results and inspection details

View and update planning information

• View and maintain order modifiers

• Forecast shipment schedules

• Search and view supplier items



Purchasing Integration with Oracle Sourcing

Purchasing Integration with Oracle Sourcing

Purchasing

• Create demand from manufacturing and employees

• Pass demand documents to Sourcing

• Create and deliver purchase orders upon Sourcing award

Sourcing

Oracle Sourcing offers sophisticated negotiation capabilities that reduce the time it takes buyers to source new products and services, as well as optimize the value of existing contracts. With Oracle Sourcing you can:

• Utilize collaborative preparation of negotiations, meaning several employees can work on drafts of a negotiation

• Conduct real-time, multi-round RFQs, auctions, and offers

• Analyze negotiation responses (bids, quotes, and counteroffers)

• Award business



Purchasing Integration with Services Procurement

Purchasing Integration with Oracle Services Procurement

Many companies do not capture their service spend through their procurement system. Oracle Services Procurement automates the entire process from request to payment. Requesters are guided to the appropriate supplier based on the requested service. Suppliers can collaborate with you throughout the entire cycle. Payments are automatically generated from service receipts ensuring you pay for only the services you received.

In many cases, services contracts don’t exist and even if they do, it is a challenge to ensure spending is directed to the preferred supplier and the negotiated terms and pricing are honored. Using Oracle Services Procurement, buyers can accurately capture complex contracts and manage the procurement activities for the services covered by these contracts.



Purchasing Integration with Procurement Contracts

Purchasing Integration with Procurement Contracts

Oracle Procurement Contracts enables companies and public organizations to author, execute, and manage procurement contracts in a logical and controlled fashion. By providing core functionality and information architecture, Oracle provides the foundation for improved contract management:

• Centralized terms library ensures consistent contract standards across the entire organization

• Comprehensive contract policies establish control and reduce risk

• Expert based authoring produces compliant contracts

• Integrated contracts enforce operational compliance

• Contracts standards & deviations provide insight into clause and policy deviations for improved corporate compliance

• Deliverable tracking monitors supplier performance

• Central contract repository provides full visibility



E-Business Suite

E-Business Suite

Oracle Projects

• Project, task, expenditure type, expenditure organization

Oracle WIP

• Receipts

• Requisitions generated from outside processing

Oracle Order Management

• Internal requisitions

• Demand

• Drop shipments

Oracle Quality

• Inspection plans

• Inventory

• Units of measure

• Item information



Oracle Advanced Pricing

• Price Lists

• Price Formulas

• Price Modifiers

• Pricing impacts requisitions and purchase orders

Oracle Advanced Supply Chain Planning (ASCP)/Material Requirements Planning (MRP)

• Requisitions created based on actual and forecast demand

Oracle Assets

• Suppliers

Oracle Consigned & Vendor Managed Inventory

• Supplier Consigned Inventory

• Vendor Managed Inventory

• Both enabled through iSupplier Portal

Oracle E-Business Tax (not shown)

• Multiple tax registrations

• Tax jurisdictions

• Tax rules

Oracle Subledger Accounting (not shown)

• Subledger accounting rules

• Create and transfer journal entries to the General Ledger

• Inquire and report on subledger journal entries



Purchasing Integration with Projects

Purchasing Integration with Oracle 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.



Purchasing Integration with WIP

Purchasing Integration with Oracle WIP

Interface Requisitions (1)

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

Requisition Import (2)

Use the Requisition Import process to import Inventory requisitions. Requisition Import creates a requisition line and one or more requisition distributions for each row it finds in the interface table. It then groups these lines on requisitions according to parameters you define. You can create releases each time you run the Requisition Import process.



Purchasing Integration with Order Management

Purchasing Integration with Oracle 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.



Purchasing Integration with Quality

Purchasing Integration with Oracle Quality

Oracle 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.

Oracle 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.

Oracle Purchasing satisfies FDA CFR 21 compliance through its integration with Oracle Quality. This auditing functionality is manifest in two areas: the approved supplier list (ASL)



and receiving inspections with Oracle Quality. Additionally, receiving inspections using Oracle Quality capture an e-signature through a self-service browser window.



Purchasing Integration with Advanced Pricing

Purchasing Integration with Advanced Pricing

Oracle Advanced Pricing is a flexible pricing engine capable of addressing complex pricing needs of customers. Using Oracle Advanced Pricing, purchasing professionals can setup complex pricing structures in the form of price lists, price formulas and modifiers. Price lists contain the basic information that associates price and currency with an item, service, group of products or services, or sub-component. Pricing formulas let you model mathematical relationships for product pricing using certain order attributes. Price modifiers allow you to setup discounts or surcharges that can be applied on top of base prices.

To price requisitions and purchase orders based on pricing rules setup in Oracle Advanced Pricing, the requisition or purchase order line need simply reference a global blanket purchase agreement (GBPA) or a contract purchase agreement.



Purchasing Integration with ASCP/MRP

Purchasing Integration with Oracle 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.



Purchasing Integration with Assets

Purchasing Integration with Oracle 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, Oracle Payables has enough information to interface the asset to Oracle Assets with description, quantity and asset category information.



Purchasing Integration with Consigned and Vendor Managed Inventory

Purchasing Integration with Oracle Consigned and Vendor Managed Inventory

Consigned Inventory

Most organizations benefit by deferring ownership of on-hand goods and materials until they are truly needed. Oracle Purchasing, in combination with Discrete Manufacturing, supports the ability to maintain supplier-owned inventory and transfer of ownership upon use.

Vendor Managed Inventory

Vendor Managed Inventory (VMI) refers to a business arrangement in which the buyer delegates purchasing and planning activity for an item to the supplier. The supplier is responsible for maintaining appropriate inventory levels for the buying organization. The supplier initiates the purchasing process based on the buying organization’s forecast demand patterns and current inventory levels.



Purchasing Open Interfaces and APIs

Purchasing Open Interfaces

Oracle Purchasing provides transaction interfaces to support other systems. Using these interfaces requires that you first populate the open interface data tables, then run an Oracle Purchasing concurrent process to validate your transactions and load them into the tables. These will be discussed in more detail in the topic for each transaction type (requisitions, purchase orders, and receipts).

In addition to open interfaces, Oracle Purchasing also provides several program APIs (application program interface) which enable your custom program to make changes to existing documents. These also are discussed in more detail in the topic for each transaction type.

Note that there is also a Supplier Open Interface available through Oracle Payables.

Refer to Guided Demonstration - Oracle Integration Repository [LAPOD021]



E-Business Suite Setup Practice

E-Business Suite Setup Practice

First we need to create an Oracle Applications user to use in the practices throughout this course.

Refer to Practice - Create a New Employee and User [LAPO001A]

Refer to Practice – Set Yourself Up As a Buyer [LAPO001D]

Refer to Guided Demonstration – Run the Fill Employee Hierarchy Process [LAB0306Y]



Summary

