Student Guide2

Oracle Internal & OAI Use Only

11i Purchasing for End Users Student Guide • Volume 2

D16657GC10

Edition 1.0

April 2003

D37960


Copyright © Oracle Corporation, 2003. All rights reserved.

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Author

Paul Scott, Todd Round, Deanna McMillian

Technical Contributors and Reviewers

Terri North, Jim Ammons, Vic Mitchell, Rachel Korte, Shridhar Acharya

This book was published using: oracletutor



11i Purchasing for End Users Table of Contents i

Table of Contents

Procure to Pay Purchasing Overview ............................................................................................................1-1 Procure to Pay Purchasing Overview ............................................................................................................1-2 Procure to Pay Lifecycle................................................................................................................................1-3 Objectives ......................................................................................................................................................1-4 Agenda...........................................................................................................................................................1-5 Overview of Purchasing Process ...................................................................................................................1-6 Overview of Requisitions ..............................................................................................................................1-8 Overview of Requisition to Order Document................................................................................................1-10 Overview of Purchase Order Process ............................................................................................................1-11 Overview of Receiving Process.....................................................................................................................1-13 Agenda...........................................................................................................................................................1-16 Overview of Purchasing Integration ..............................................................................................................1-17 Purchasing Integration with General Ledger .................................................................................................1-22 Purchasing Integration with Payables............................................................................................................1-23 Purchasing Integration with Cash Management ............................................................................................1-24 Purchasing Integration with Projects .............................................................................................................1-25 Purchasing Integration with ASCP/MRP ......................................................................................................1-26 Purchasing Integration with e-Commerce Gateway ......................................................................................1-27 Purchasing Integration with Human Resources.............................................................................................1-28 Purchasing Integration with Quality ..............................................................................................................1-29 Purchasing Integration with Inventory ..........................................................................................................1-30 Purchasing Integration with Alert..................................................................................................................1-31 Purchasing Integration with Workflow..........................................................................................................1-32 Purchasing Integration with iSupplier Portal.................................................................................................1-34 Purchasing Integration with Assets................................................................................................................1-36 Purchasing Integration with WIP...................................................................................................................1-37 Purchasing Integration with Order Management ...........................................................................................1-38 Summary........................................................................................................................................................1-39

Suppliers...........................................................................................................................................................2-1 Suppliers ........................................................................................................................................................2-2 Procure to Pay Lifecycle................................................................................................................................2-3 Objectives ......................................................................................................................................................2-4 Agenda...........................................................................................................................................................2-5 How Oracle Products Use Supplier Information ...........................................................................................2-6 Overview of Suppliers ...................................................................................................................................2-7 Flow of Default Values..................................................................................................................................2-8 Agenda...........................................................................................................................................................2-9 Supplier Record Structure..............................................................................................................................2-10 Entering Basic Supplier Header Information.................................................................................................2-11 Supplier Information - General Region .........................................................................................................2-13 Supplier Information - Classification Region ................................................................................................2-14 Supplier Information - Accounting Region ...................................................................................................2-16 Supplier Information - Control Region..........................................................................................................2-17 Supplier Information - Payment Region........................................................................................................2-19 Supplier Information - Bank Accounts Region .............................................................................................2-21 Supplier Information - EDI Region ...............................................................................................................2-22 Supplier Information - Invoice Tax Region...................................................................................................2-23 Supplier Information - Withholding Tax Region...........................................................................................2-24 Supplier Information - Tax Reporting Region...............................................................................................2-25 Supplier Information - Purchasing Region ....................................................................................................2-26 Supplier Information - Receiving Region......................................................................................................2-28 Supplier Site Settings.....................................................................................................................................2-30



11i Purchasing for End Users Table of Contents ii

Supplier Level Versus Site Level Entry ........................................................................................................2-31 Entering Basic Supplier Site Information.....................................................................................................2-32 Supplier Site Information - General Region ..................................................................................................2-33 Supplier Site Information - Contacts Region.................................................................................................2-35 Supplier Site Information - Accounting Region ............................................................................................2-36 Supplier Site Information - EDI Region ........................................................................................................2-37 Supplier Site Information - Tax Reporting Region........................................................................................2-38 Supplier Site Information - Purchasing Region .............................................................................................2-39

Guided Demonstration - Create a New Employee (Required)...................................................................2-40 Guided Demonstration - Run the Fill Employee Hierarchy Process (Required) .......................................2-42 Guided Demonstration - Create a New Responsibility (Required)............................................................2-43 Guided Demonstration - Create a New User (Required) ...........................................................................2-45 Guided Demonstration - Add Notifications to your Personal Home Page (Required) ..............................2-47 Guided Demonstration - Set Yourself up as a Buyer (Required)...............................................................2-48 Guided Demonstration - Create a Supplier (Required)..............................................................................2-49 Practice - Define a Supplier .......................................................................................................................2-53 Solution - Define a Supplier ......................................................................................................................2-54 Practice - Adjust a Supplier Site ................................................................................................................2-62 Solution - Adjust a Supplier Site ...............................................................................................................2-63

Maintaining Supplier and Supplier Site Information.....................................................................................2-66 Avoiding Duplicate Suppliers........................................................................................................................2-67 Merging Suppliers .........................................................................................................................................2-69 Data Example - Supplier Merge ....................................................................................................................2-71 Merging Suppliers .........................................................................................................................................2-72 Agenda...........................................................................................................................................................2-73 Reports...........................................................................................................................................................2-74 Summary........................................................................................................................................................2-77

Locations, Organizations, Units of Measure and Items ...............................................................................3-1 Locations, Organizations, Units of Measure and Items .................................................................................3-2 Agenda...........................................................................................................................................................3-3 What Is an Item?............................................................................................................................................3-4 Oracle Applications Use Items ......................................................................................................................3-5 How Do Oracle Applications Use Items?......................................................................................................3-6 Item Attributes...............................................................................................................................................3-8 Items Have Statuses Which Represent the Life Cycle of the Item ................................................................3-10 Item Attributes Used in Item Status...............................................................................................................3-12 Item Master Organization and Child Organizations ......................................................................................3-14 Creating an Item ............................................................................................................................................3-16 Setup, Define and Maintain Items .................................................................................................................3-17 Describing Attribute Control at Master Level ...............................................................................................3-20 Describing Attribute Control at Child Level .................................................................................................3-22 Describing Item Status Attribute Controls.....................................................................................................3-24 Describing Status Attribute Dependencies ....................................................................................................3-26 Describing Item Attributes - Inventory..........................................................................................................3-27 Describing Item Attributes - Purchasing .......................................................................................................3-31 Describing Item Attributes - Receiving .........................................................................................................3-36

Guided Demonstration - Create an Expense Item (Required) ...................................................................3-39 Guided Demonstration - Create an Inventory Item (Required)..................................................................3-41 Guided Demonstration - Create an Item for a Routinely Purchased Asset (Required)..............................3-43 Practice - Create Items...............................................................................................................................3-45 Solution - Create Items ..............................................................................................................................3-48

Define Item Relationships - Purchasing ........................................................................................................3-56 Agenda...........................................................................................................................................................3-58 Describing Item Templates............................................................................................................................3-59 Creating Item Templates ...............................................................................................................................3-60 Using Item Templates....................................................................................................................................3-62



11i Purchasing for End Users Table of Contents iii

Example of Using a Template .......................................................................................................................3-63 Additional Setup Considerations ...................................................................................................................3-64 Summary........................................................................................................................................................3-66

RFQs and Quotations......................................................................................................................................4-1 RFQs and Quotations.....................................................................................................................................4-2 Procure to Pay Lifecycle................................................................................................................................4-3 Objectives ......................................................................................................................................................4-4 Agenda...........................................................................................................................................................4-5 RFQs and Quotations.....................................................................................................................................4-6 Agenda...........................................................................................................................................................4-7 Request for Quotation....................................................................................................................................4-8 RFQ Lifecycle ...............................................................................................................................................4-10 Send Notifications .........................................................................................................................................4-11 RFQ Types.....................................................................................................................................................4-12 Supplier List ..................................................................................................................................................4-13

Guided Demonstration - Create a Supplier List (Required).......................................................................4-14 Practice - Create a Supplier List ................................................................................................................4-15 Solution - Create a Supplier List................................................................................................................4-16

RFQ Structure................................................................................................................................................4-18 RFQ Header...................................................................................................................................................4-19 RFQ Lines .....................................................................................................................................................4-21 RFQ Price Breaks/Shipments ........................................................................................................................4-23

Guided Demonstration - Create a Catalog RFQ (Required) ......................................................................4-24 Practice - Create a Catalog RFQ................................................................................................................4-27 Solution - Create a Catalog RFQ ...............................................................................................................4-31

Agenda...........................................................................................................................................................4-44 Quotations......................................................................................................................................................4-45 Quotation Lifecycle .......................................................................................................................................4-47 Send Notifications .........................................................................................................................................4-48 Quotation Types ............................................................................................................................................4-49 Quotation Structure........................................................................................................................................4-50 Quotation Header...........................................................................................................................................4-51 Quotation Lines .............................................................................................................................................4-53 Quotation Price Breaks/Shipments ................................................................................................................4-55 Quotation Approvals......................................................................................................................................4-56

Guided Demonstration - Create a Catalog Quote from an RFQ (Required) ..............................................4-57 Guided Demonstration - Schedule the Send Notifications for Purchasing Documents Process (Required)...................................................................................................................................................................4-60 Practice - Create a Catalog Quote from an RFQ........................................................................................4-61 Solution - Create a Catalog Quote from an RFQ.......................................................................................4-63

Agenda...........................................................................................................................................................4-68 Reports...........................................................................................................................................................4-69 Summary........................................................................................................................................................4-71

Approved Supplier Lists and Sourcing Rules ...............................................................................................5-1 Approved Supplier Lists and Sourcing Rules................................................................................................5-2 Procure to Pay Lifecycle................................................................................................................................5-3 Objectives ......................................................................................................................................................5-4 Agenda...........................................................................................................................................................5-5 Approved Supplier Lists ................................................................................................................................5-6 Supplier Statuses ...........................................................................................................................................5-7

Guided Demonstration - Create an Approved Supplier List Status (Required) .........................................5-9 Practice - Create an Approved Supplier List Status...................................................................................5-10 Solution - Create an Approved Supplier List.............................................................................................5-11

ASL Common Header Attributes ..................................................................................................................5-13 ASL Header Attributes - Item........................................................................................................................5-15 ASL Header Attributes - Commodity............................................................................................................5-16



11i Purchasing for End Users Table of Contents iv

Supplier-Commodity/Item Attributes ............................................................................................................5-18 Supplier-Commodity/Item Attributes Source Document ..............................................................................5-21 Supplier-Commodity/Item Attributes Supplier Scheduling...........................................................................5-23 Supplier-Commodity/Item Attributes Planning Constraints..........................................................................5-25

Guided Demonstration - Require an Approved Supplier for an Item (Required) ......................................5-27 Guided Demonstration - Create an Approved Supplier List (Required)....................................................5-29 Practice - Require an Approved Supplier for an Item................................................................................5-31 Solution - Require an Approved Supplier for an Item ...............................................................................5-33 Practice - Create an Approved Supplier List .............................................................................................5-38 Solution - Create an Approved Supplier List.............................................................................................5-40

Agenda...........................................................................................................................................................5-45 Sourcing Rules Overview..............................................................................................................................5-46 Sourcing Rules...............................................................................................................................................5-47 Oracle Products That Use Sourcing Rules.....................................................................................................5-49 Create a Sourcing Rule ..................................................................................................................................5-50 Create a Sourcing Rule Assignment ..............................................................................................................5-51 Levels of Sourcing Rule Assignments...........................................................................................................5-53 Sourcing Rules with an ASL Source Document............................................................................................5-54 Sourcing Rules without an ASL Source Document.......................................................................................5-55 Default Sourcing Information to Requisitions...............................................................................................5-56 Default Sourcing Information to Standard Purchase Orders .........................................................................5-57

Guided Demonstration - Create a Sourcing Rule and a Sourcing Rule Assignment (Required) ...............5-58 Guided Demonstration - Enable Automatic Document Sourcing (Required)............................................5-62 Practice - Create a Sourcing Rule and a Sourcing Rule Assignment.........................................................5-64 Solution - Create a Sourcing Rule and a Sourcing Rule Assignment ........................................................5-67 Practice - Enable Automatic Document Sourcing .....................................................................................5-72 Solution - Enable Automatic Document Sourcing.....................................................................................5-73

Summary........................................................................................................................................................5-74 Requisitions ......................................................................................................................................................6-1

Requisitions ...................................................................................................................................................6-2 Procure to Pay Lifecycle................................................................................................................................6-3 Objectives ......................................................................................................................................................6-4 Agenda...........................................................................................................................................................6-5 Where Purchase Requisitions Fit...................................................................................................................6-6 Requisition Lifecycle.....................................................................................................................................6-7 Send Notifications .........................................................................................................................................6-8 Agenda...........................................................................................................................................................6-9 Requisition Structure .....................................................................................................................................6-10 Requisition Preferences .................................................................................................................................6-11 Requisition Header ........................................................................................................................................6-13 Requisition Line ............................................................................................................................................6-15

Guided Demonstration - Create a Purchase Requisition (Required)..........................................................6-19 Practice - Create a Purchase Requisition ...................................................................................................6-21 Solution - Create a Purchase Requisition...................................................................................................6-23

Agenda...........................................................................................................................................................6-30 Supplier Item Catalog....................................................................................................................................6-31 Using the Supplier Item Catalog....................................................................................................................6-32

Guided Demonstration - Create a Requisition Template (Required).........................................................6-33 Guided Demonstration - Use the Supplier Item Catalog to Create a Requisition (Required)....................6-35 Practice - Create a Requisition Template...................................................................................................6-37 Solution - Create a Requisition Template..................................................................................................6-39 Practice - Use the Supplier Item Catalog to Create a Requisition .............................................................6-42 Solution - Use the Supplier Item Catalog to Create a Requisition.............................................................6-43

Requisition Distribution ................................................................................................................................6-47 Allocating Costs to Multiple Charge Accounts .............................................................................................6-49 Submitting Requisitions for Approval...........................................................................................................6-50



11i Purchasing for End Users Table of Contents v

Approving Requisitions.................................................................................................................................6-51 Requisition Templates ...................................................................................................................................6-52 Requisition Actions .......................................................................................................................................6-53 Agenda...........................................................................................................................................................6-54 Reports...........................................................................................................................................................6-55 Summary........................................................................................................................................................6-57

Purchase Orders ..............................................................................................................................................7-1 Purchase Orders.............................................................................................................................................7-2 Procure to Pay Lifecycle................................................................................................................................7-3 Objectives ......................................................................................................................................................7-4 Agenda...........................................................................................................................................................7-5 Purchase Order Types....................................................................................................................................7-6 Purchase Orders.............................................................................................................................................7-8 Purchase Order Components and Record Structure.......................................................................................7-9 Overview of AutoCreated Purchase Orders...................................................................................................7-11 Agenda...........................................................................................................................................................7-13 Overview of Standard Purchase Orders.........................................................................................................7-14 Simplify the Entry of Purchase Orders: Preferences .....................................................................................7-15 Standard Purchase Order Elements................................................................................................................7-17 Structure of a Simple Standard Purchase Order ............................................................................................7-18 Structure of a More Complex Standard Purchase Order................................................................................7-19 Entering Standard Purchase Order Header Information ................................................................................7-20 Standard Purchase Orders Terms and Conditions .........................................................................................7-22 Entering Standard Purchase Order Lines Tabbed Regions............................................................................7-24 Standard Purchase Order Line Items Tabbed Region....................................................................................7-25 Standard Purchase Order Line Price Reference Tabbed Region ...................................................................7-27 Standard Purchase Order Line Reference Documents Tabbed Region..........................................................7-28 Standard Purchase Order Line More Tabbed Region ....................................................................................7-30 Entering Standard Purchase Order Shipments - Tabbed Regions..................................................................7-31 Standard Purchase Order Shipment Shipments Tabbed Region ....................................................................7-32 Standard Purchase Order Shipment More Tabbed Region ............................................................................7-34 Standard Purchase Order Shipment Status Tabbed Region ...........................................................................7-36 Standard Purchase Order Shipment Receiving Controls Button....................................................................7-37 Entering Standard Purchase Order Distributions - Tabbed Regions..............................................................7-38 Standard Purchase Order Distribution Destination Tabbed Region ..............................................................7-39 Standard Purchase Order Distribution More Tabbed Region ........................................................................7-41 Standard Purchase Order Distribution Project Tabbed Region......................................................................7-42 Approve Standard Purchase Order ................................................................................................................7-43

Guided Demonstration - Create a Standard Purchase Order (Required) ...................................................7-44 Practice - Create a Standard Purchase Order .............................................................................................7-50 Solution - Create a Standard Purchase Order.............................................................................................7-52

Agenda...........................................................................................................................................................7-64 When to Use a Blanket Purchase Agreement ................................................................................................7-65 Blanket Releases............................................................................................................................................7-66 Blanket Purchase Agreements Additional Information Entered....................................................................7-68 Blanket Purchase Agreements Additional Information - Header ..................................................................7-69 Blanket Purchase Agreements Additional Information - Lines .....................................................................7-71 Blanket Purchase Agreements Additional Information - Price Breaks..........................................................7-73 Notification Controls .....................................................................................................................................7-75 Approve Blanket Purchase Agreement..........................................................................................................7-77

Guided Demonstration - Create a Blanket Purchase Agreement (Required).............................................7-78 Blanket Purchase Agreement and Blanket Releases......................................................................................7-81 Blanket Releases Structure - Header .............................................................................................................7-82 Blanket Releases Structure Shipments and Distributions ..............................................................................7-84

Guided Demonstration - Create a Blanket Release (Required) .................................................................7-85 Practice - Create a Blanket Purchase Agreement and Blanket Release .....................................................7-86



11i Purchasing for End Users Table of Contents vi

Solution - Create a Blanket Purchase Agreement and Blanket Release ....................................................7-88 Agenda...........................................................................................................................................................7-98 When to Use a Contract Purchase Agreement...............................................................................................7-99 Contract Purchase Agreements Additional Information Entered...................................................................7-100 Standard Purchase Order Line Reference Documents Tabbed Region..........................................................7-102

Guided Demonstration - Create a Contract Purchase Agreement (Required)............................................7-104 Practice - Create a Contract Purchase Agreement .....................................................................................7-106 Solution - Create a Contract Purchase Agreement.....................................................................................7-107

Agenda...........................................................................................................................................................7-113 Purchase Order Inquiry..................................................................................................................................7-114 Modifying Purchase Orders...........................................................................................................................7-116 Printing Purchase Orders ...............................................................................................................................7-118 Creating Purchase Order Revisions ...............................................................................................................7-119 Archiving Purchase Orders............................................................................................................................7-120 Purchase Order Statuses - Typical Cycle.......................................................................................................7-121 Entering Purchase Order Acceptances...........................................................................................................7-124 Workflow Notifications.................................................................................................................................7-126 Copying Purchase Orders ..............................................................................................................................7-127 Agenda...........................................................................................................................................................7-129 Reports...........................................................................................................................................................7-130 Summary........................................................................................................................................................7-134

Automatic Document Creation.......................................................................................................................8-1 Automatic Document Creation ......................................................................................................................8-2 Procure to Pay Lifecycle................................................................................................................................8-3 Objectives ......................................................................................................................................................8-4 Agenda...........................................................................................................................................................8-5 Creating Purchase Documents from Requisitions .........................................................................................8-6 Benefits of Using AutoCreate........................................................................................................................8-8 Overview of AutoCreate................................................................................................................................8-9 Automatic Creation Mode .............................................................................................................................8-11 Find Requisition Lines...................................................................................................................................8-12 Select Document Creation Criteria ................................................................................................................8-14 Select Requisition Lines ................................................................................................................................8-16 Select Automatic Creation Mode...................................................................................................................8-17 Autocreate New Document Window.............................................................................................................8-18 Manual Creation Mode..................................................................................................................................8-19 Add to Existing Document ............................................................................................................................8-20 Modify Requisition Lines..............................................................................................................................8-21 Return Requisition Lines ...............................................................................................................................8-22

Guided Demonstration - Return a Requisition (Required) ........................................................................8-23 Guided Demonstration - AutoCreate a Purchase Order (Required)...........................................................8-25 Practice - Return a Requisition ..................................................................................................................8-26 Solution - Return a Requisition .................................................................................................................8-29 Practice - AutoCreate a Purchase Order ....................................................................................................8-38 Solution - AutoCreate a Purchase Order....................................................................................................8-39

Summary........................................................................................................................................................8-42 Receiving ..........................................................................................................................................................9-1

Receiving.......................................................................................................................................................9-2 Procure to Pay Lifecycle................................................................................................................................9-3 Objectives ......................................................................................................................................................9-4 Agenda...........................................................................................................................................................9-5 Receiving.......................................................................................................................................................9-6 Overview of Receiving Locations .................................................................................................................9-8 Agenda...........................................................................................................................................................9-9 Overview of Receipt Routing ........................................................................................................................9-10 Direct Delivery ..............................................................................................................................................9-11



11i Purchasing for End Users Table of Contents vii

Standard Receipt............................................................................................................................................9-12 Inspection Required.......................................................................................................................................9-13 Agenda...........................................................................................................................................................9-14 Receipt Processing Methods..........................................................................................................................9-15 Standard Receipt............................................................................................................................................9-17 Express Receipt .............................................................................................................................................9-18 Cascade Receipt.............................................................................................................................................9-19 ASNs and ASBNs..........................................................................................................................................9-20 Receiving in iProcurement ............................................................................................................................9-21 Receiving Open Interface ..............................................................................................................................9-22 Finding Expected Receipts ............................................................................................................................9-23 Receipt Header ..............................................................................................................................................9-25 Receipt Line...................................................................................................................................................9-27

Guided Demonstration - Create a Standard Purchase Order (Required) ...................................................9-29 Guided Demonstration - Create a Standard Receipt (Required) ................................................................9-34 Guided Demonstration - Create an Express Receipt (Required) ...............................................................9-36 Guided Demonstration - Create a Cascade Receipt (Required).................................................................9-38 Practice - Create Items...............................................................................................................................9-40 Solution - Create Items ..............................................................................................................................9-43 Practice - Create a Standard Purchase Order .............................................................................................9-51 Solution - Create a Standard Purchase Order.............................................................................................9-54 Practice - Create a Standard Receipt..........................................................................................................9-61 Solution - Create a Standard Receipt .........................................................................................................9-63 Practice - Create an Express Receipt .........................................................................................................9-65 Solution - Create an Express Receipt.........................................................................................................9-67 Practice - Create a Cascade Receipt ..........................................................................................................9-69 Solution - Create a Cascade Receipt..........................................................................................................9-71

Control the Receiving Transaction Processor................................................................................................9-74 Receiving Tolerances ....................................................................................................................................9-76 Control Numbers ...........................................................................................................................................9-77 Agenda...........................................................................................................................................................9-78 Substitute Receipts ........................................................................................................................................9-79 Unordered Receipts .......................................................................................................................................9-80 Overview of Returns and Corrections ...........................................................................................................9-81 Entering Returns ............................................................................................................................................9-82 Entering Corrections......................................................................................................................................9-83 Difference between Returns and Corrections ................................................................................................9-84

Guided Demonstration - Inspect and Deliver a Receipt (Required) ..........................................................9-85 Guided Demonstration - Process a Return to Supplier (Optional).............................................................9-87 Guided Demonstration - Correct a Receiving Error (Optional).................................................................9-89 Practice - Inspect and Deliver a Receipt ....................................................................................................9-91 Solution - Inspect and Deliver a Receipt ...................................................................................................9-93 Practice - Process a Return to Supplier......................................................................................................9-96 Solution - Process a Return to Supplier .....................................................................................................9-98 Practice - Correct a Receiving Error..........................................................................................................9-100 Solution - Correct a Receiving Error .........................................................................................................9-102

Overview of Pay on Receipt ..........................................................................................................................9-105 Agenda...........................................................................................................................................................9-107 Reports...........................................................................................................................................................9-108 Summary........................................................................................................................................................9-111




11i Purchasing for End Users Table of Contents ix

Preface

Profile

Prerequisites

• 11i Navigating Oracle Applications

• 11i Essentials for Implementers.

How This Course Is Organized

This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations and written practice sessions reinforce the concepts and skills introduced.

Related Publications

Oracle Publications

Title Part Number

Oracle Payables User’s Guide A81180-03

Oracle Purchasing User’s Guide A82913-01

Oracle iProcurement Installation Guide A85343-02

Oracle Inventory User’s Guide A83507-03

Implementing Oracle HRMS (US) A75314-02

Additional Publications

• System release bulletins

• Installation and user’s guides

• read.me files

• Oracle Magazine



11i Purchasing for End Users Table of Contents x

Typographic Conventions

Typographic Conventions in Text Convention Element Example Bold italic Glossary term (if

there is a glossary)

The algorithm inserts the new key.

Caps and lowercase

Buttons, check boxes, triggers, windows

Click the Executable button. Select the Can’t Delete Card check box. Assign a When-Validate-Item trigger to the ORD block. Open the Master Schedule window.

Courier new, case sensitive (default is lowercase)

Code output, directory names, filenames, passwords, pathnames, URLs, user input, usernames

Code output: debug.set (‘I”, 300); Directory: bin (DOS), $FMHOME (UNIX) Filename: Locate the init.ora file. Password: User tiger as your password. Pathname: Open c:\my_docs\projects URL: Go to http://www.oracle.com User input: Enter 300 Username: Log on as scott

Initial cap Graphics labels (unless the term is a proper noun)

Customer address (but Oracle Payables)

Italic Emphasized words and phrases, titles of books and courses, variables

Do not save changes to the database. For further information, see Oracle7 Server SQL Language Reference Manual. Enter [email protected], where user_id is the name of the user.

Quotation marks

Interface elements with long names that have only initial caps; lesson and chapter titles in cross-references

Select “Include a reusable module component” and click Finish. This subject is covered in Unit II, Lesson 3, “Working with Objects.”

Uppercase SQL column names, commands, functions, schemas, table names

Use the SELECT command to view information stored in the LAST_NAME column of the EMP table.

Arrow Menu paths Select File > Save. Brackets Key names Press [Enter]. Commas Key sequences Press and release keys one at a time:

[Alternate], [F], [D] Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]



11i Purchasing for End Users Table of Contents xi

Typographic Conventions in Code Convention Element Example Caps and lowercase

Oracle Forms triggers

When-Validate-Item

Lowercase Column names, table names

SELECT last_name FROM s_emp;

Passwords DROP USER scott IDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER (OG_GET_LAYER (‘prod_pie_layer’))

Lowercase italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and functions

SELECT userid FROM emp;

Typographic Conventions in Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink



11i Purchasing for End Users Table of Contents xii

Typographical Conventions in Help System Paths

This course uses a “navigation path” convention to represent actions you perform to find pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system window.



Purchase Orders Chapter 7 - Page 1

Purchase Orders Chapter 7




Purchase Orders

Purchase Orders




Procure to Pay Lifecycle

Requisitions

Purchase Orders

Receiving

Reporting

Invoice/ Payment

Supplier Performance

Supplier management

RFQs/ Quotations

CatalogContent

Management

Sourcing

Ordering

Analysis





Objectives

Objectives

After completing this module, you should be able to do the following:• Create standard, blanket and contract

purchase documents• Create blanket purchase agreement releases• Maintain purchase orders• Identify key reports• Understand setup options• Understand additional implementation

considerations




Agenda

Agenda

• Overview of purchase orders• Create standard purchase orders• Create blanket purchase agreements

and releases• Create contract purchase agreements• Maintain/adjust purchase orders• Identify key standard reports• Understand setup options• Understand additional implementation

considerations




Purchase Order Types


Header

Line

Shipment

Distribution

Contract Agreement

HeaderHeader

Line

Header

Line

Shipment

Distribution

Blanket Agreement

Planned Purchase

Order

Standard Purchase

Order

Shipment

Distribution

Blanket Release

Header

Line

Shipment

Distribution

Standard PO

Scheduled Release


Standard Purchase Order A one-time commitment to purchase goods or services. 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 Order A long-term purchase agreement committing you to buy goods or services. Planned purchase orders include tentative delivery schedules and accounting distributions. Create planned releases to authorize suppliers to ship. Blanket Purchase Agreement A long-term agreement allowing for stable pricing over the life of the agreement, while also allowing flexible order quantity commitments and delivery schedules. Pricing on blanket purchase agreements can include break pricing. You typically use this agreement when negotiating volume discounts on individual items. Create blanket releases to authorize suppliers to ship. Contract Purchase Agreement




A master terms and conditions document. Typically use contract purchase agreements when negotiating pricing on a volume of business to manage terms and conditions. Suppliers are authorized to ship through standard purchase order lines referencing the contract. Contracts can be coupled with a catalog quotation to reference pricing on a per item basis.




Purchase Orders

Inventory WIP MRP

Demand

RequisitionRequisition

pool

Order Mgmt

Import

Internalsales order

Manuallycreate

Approval

Order Mgmt

PO

Other Systems

Purchase Orders

Purchase Orders

Demand for Goods or Services Import requisitions from created from demand generated in Materials Requirements Planning (MRP), Inventory, Work-in-Process (WIP), Order Management or other non-Oracle systems. Demand can also be generated manually through detail entry, with the assistance of requisition templates, or through the iProcurement module. Sourcing Goods or services can be sourced from external suppliers through the creation of purchase orders or from within the organization through the creation of internal sales orders.




Purchase Order Components and Record Structure


Header

Lines

Shipments

Distributions

1 32

1 11

111

2

2 1


Header Each purchase order has a header that provides the supplier’s name/number and address (through sites), basic ship-to and bill-to addresses (through locations) and a status. Lines Goods or services ordered are listed on the Lines region, including quantities, price, need-by date, notes to supplier and price reference information. You can order system items or one-time items (a category and description). Even companies who are not inventory focused can benefit from defining system items to reduce data entry requirements for their staff. Shipments Use the Shipments window to specify inventory organizations, ship-to locations and the date you want your supplier to deliver the items on the purchase order line. A purchase order line with a quantity of six items can, for example, have two scheduled shipments on separate dates. Distributions Use the purchase order Distributions window to enter distribution information for purchase order shipments or to view distributions that Purchasing has automatically created for you.




You can enter multiple distributions per shipment line. You can also view the on-line requisitions included on the purchase order or enter information about paper requisitions in this window.




Overview of AutoCreated Purchase Orders


Requisitionlinepool

Query available requisition lines

POChoose lines

fromquery results

Automaticmode

Manualmode

PO


Using the AutoCreate form is a common method to produce purchase documents from requisitions. Other methods include:

• Purchasing Document Open Interface • PO Create Documents workflow • Copy Document

Requisition Line Pool You can use the AutoCreate window to query requisition lines with a status of Approved to place on purchase orders. You can query lines for different requisitions, different items, different suggested suppliers, different departments, etc. You may be able to lower unit prices by combining multiple requisition lines and taking advantage of volume discount purchases. Automatic Mode Versus Manual Mode After buyers query and select requisition lines, they can choose to use either Automatic creation mode or Manual creation mode to place requisition lines on purchase documents. You generally select manual creation mode only when you need to specify exact ordering and grouping of requisition lines on a purchase document.




Agenda

Agenda


and releases• Create contract purchase agreements• Maintain/adjust purchase orders• Identify key standard reports• Understand setup options• Understand additional

implementation considerations




Overview of Standard Purchase Orders


Buyer Supplier

Purchase Order

- binding agreement -


Definition You generally create standard purchase orders for one-time purchases of various items when you know the details of the goods or services you require, including costs, quantities, delivery schedules and accounting distributions. Each standard purchase order line can have multiple shipments, and you can distribute the quantity of each shipment across multiple charge accounts, projects, tasks and requestors. Binding agreement The original copy of the purchase order you send to your supplier is a legal offer to buy. A binding purchase contract does not exist until the supplier accepts your offer either by performing the contract (by shipping goods) or formally accepting the offer by contacting you verbally or in writing. You can record acceptances on behalf of your suppliers or they can do it using iSupplier Portal. The Send Notifications for Purchasing Documents process will send you a notification if a required acceptance is not recorded by the required date.




Simplify the Entry of Purchase Orders: Preferences

Simplify the Entry of Purchase Orders: Preferences

PO Documents

Default Value Hierarchy

Preferences

Simplify the Entry of Purchase Orders - Preferences

Definition Use the Preferences window to enter values that will default to all purchase order headers, lines, shipments and distributions that you enter. By using preferences, you have essentially gained an additional level of defaults in the Default Value Hierarchy. Recall that the Purchasing Default Value Hierarchy includes the following: Financials Options, Purchasing/Receiving Options, Supplier, Supplier Site, Item and PO Documents. Benefits Although setting preferences is optional, you will want to selectively enter preferences for data that would be repetitively entered on multiple lines, shipments or distributions. Preferences, therefore, reduce the amount of data entry required to complete purchase orders. For example, if you’re creating a purchase order for four items, all of which are needed by the same date, specify a Need-By date in the Preferences window that will default to all four lines. If, however, all four items were needed by a different date, it wouldn’t save any time to use the Preferences window to specify a Need-By date. How Long are Preferences Effective?




Session preferences must be set each time you log into the applications or even change responsibilities. While in a session, however, preferences remain in effect unless you explicitly clear or change them. Apply Preferences to Save Once the desired preferences have been set, you must click the Apply button to save them. If you simply close the Preferences window, either no preferences will be set or previously set preferences will remain in effect.




Standard Purchase Order Elements

HEADER

LINE

SHIPMENT

DISTRIBUTION

Standard Purchase Order


Standard purchase orderscontain all four elements ofa purchasing document.

All purchase order typesrepresent some combinationof the basic elements of thestandard purchase order.


Purchasing Responsibility (N) Purchase Orders > Purchase Orders The Standard Purchase Order is complete and allows a supplier to locate and deliver the goods or services ordered. All purchase order types represent some combination of the basic elements of the standard purchase order.

• Header - Contains the purchase order number, the supplier’s name and address, basic ship-to and bill-to addresses, and the status.

• Line - Details of the goods or services ordered, including name, quantity and price. • Shipment - Details of when and where to deliver items. • Distribution - Details of charge accounts and requisition references.




Structure of a Simple Standard Purchase Order

HEADER

LINE 1

SHIPMENT 1

DISTRIBUTION 1

LINE 2

SHIPMENT 1

DISTRIBUTION 1



The structure displayed above shows a purchase order with two items being ordered (Line 1 and Line 2). Each item is expected to be shipped on the same day to a single address. Furthermore, each item is charged to a single charge account.




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


The structure displayed above shows a purchase order with two items being ordered (line 1 and line 2). Line 1, however, has a single shipment with multiple distributions while line 2 has multiple shipments, each with a single distribution. Notice that you cannot equate the number associated with a shipment line or distribution line with an item line. For example, distribution 2 does not belong to shipment 2 or line 2. Distribution 2 actually belongs to shipment 1 which belongs to item line 1.




Entering Standard Purchase Order Header Information

Currency Terms

Line

PO Number PO Type Created Date

Supplier Name Supplier Site Supplier Contact

Ship To Bill To Currency

Buyer Status Total

Description

Purchase Orders



PO Number The system will generate a PO number when the document is saved, if PO automatic number generation is enabled. If manual numbering is enabled, you must enter a unique PO number. PO Type Select Standard Purchase Order for this field. Creation Date This will be the date that the document was initially saved. It may be the same day, the next week or the next month before the purchase order is submitted for approval. Supplier, Site and Contact The list of values on the Supplier field contains active suppliers. The list of values on the site field contains active sites that are designated as purchasing sites on the General tabbed region for the site. If you cannot find the desired supplier or site, you may need to request that it be defined. Choose a contact using the list of values if contacts are defined and no contact defaults. Ship-to and Bill-to Locations




Ship-to and Bill-to locations default based on the supplier and site you select. You can override the values that default. Currency The functional currency defaults. Use the Currency button to change the functional currency if you are using multiple currencies. Buyer The defaulted buyer is the employee name associated with the user name of the person creating the purchase order. If the Enforce Buyer Name option in the Purchasing Options window is set to Yes, you will not be able to override the default. Status The status of a newly created purchase order is Incomplete. The status will be updated by the system based on actions taken by buyers or approvers. Total The total of the purchase order is displayed based on the extended line totals. Description You can enter comments in the 240 character description field. Although the description does not print on the printed purchase order, suppliers can use it if they have access to the system with iSupplier Portal.




Standard Purchase Orders Terms and Conditions

Standard Purchase Orders Terms and Conditions

Special Conditions

• Confirming Order

• Firm

• Acceptance Required

Notes

• Supplier

• Receiver

Terms

• Payment

• Freight

• Carrier

• FOB

• Pay On

Standard Purchase Orders - Terms and Conditions

Payment terms Specify payment terms indicate when you are expected to make payment for the goods or services received. The terms may include an amount due, as well as a discount amount. Commonly used payment terms are Net 30 or 2/10, Net/30. You can create additional payment terms as necessary. 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). Carrier Specify the name of the freight carrier responsible for physical transportation of the goods. FOB, or Free-On-Board Specify FOB to indicate the point at which ownership of the goods (and therefore costs of loss or damage) transfers from the supplier to you. Commonly used FOB terms include Origin (indicating that ownership transfers at the point when the supplier delivers the goods to the




carrier) and Destination (indicating that ownership transfers at the point when the carrier delivers the goods to you). Pay On Provides a default value of Receipt if the selected supplier site has been enabled for the Pay on Receipt functionality. If Receipt is selected, an invoice will be automatically created for this purchase order when receipt of the goods has been acknowledged and you run the Pay on Receipt AutoInvoice process. If you do not want an invoice to be created, you can clear the value that defaults into the field. Special Conditions

• Confirming Order - Indicates that you’ve already communicated the order to the supplier and this purchase order is simply providing written confirmation. When you select the Confirming Order option, the words “This is a confirming order. Do not duplicate.” will be included on the printed purchase order.

• Firm - This is a setting used with MRP to indicate to that module that it can neither change the details nor suggest changes to the details of the purchase order based on changed demands that have occurred since the order was originally created.

• Acceptance Required - Indicates whether acknowledgement of receipt of the purchase order is requested from the supplier. When the box is checked, the buyer can also provide the date by which that acknowledgement is requested.

Notes: • Supplier Note - This field can be used to enter up to 240 characters which will print on

the purchase order sent to the supplier. • Receiver Note - This field also allows up to 240 characters to be entered, but will not be

printed on the purchase order. Notes to receiver are can be viewed by users entering actual receipt transactions.




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

Entering Standard Purchase Order Lines Tabbed Regions

Entering Standard Purchase Order Lines - Tabbed Regions

Enter initial information regarding the goods or services being ordered in the tabbed regions for the line. If sufficient valid default information is available, Purchasing creates shipments and distributions for each line. Items Tabbed Region Enter basic information such as the items, descriptions, quantities, and dates needed. Price Reference Tabbed Region Pricing information will default in this tabbed region from the item definition. Reference Documents Tabbed Region Use the Reference Documents tabbed region to reference contracts or catalog quotations when purchasing items from established agreements. If you have associated a catalog quotation with an approved supplier list or are have set the PO: Automatic Document Sourcing profile option to Yes, and have valid quotations in the system, quotation information will default. More Tabbed Region Enter information regarding hazardous materials and supplier notes in this tabbed region.




Standard Purchase Order Line Items Tabbed Region

ItemsNum, Type, Item, Revision,Category, Description,UOM, Quantity, Price,Promised, Need-By, SupplierItem, ChargeAccount, Amount

Price ReferenceReference DocumentsMore

Standard Purchase Order Line Items Tabbed Region

HEADER

LINE

SHIPMENT

DISTRIBUTION


Standard Purchase Order Line - Items Tabbed Region

Num The system will automatically generate a unique line number for each line you create. Type The value that defaults to new lines is the value set as the default in the Purchasing Options window. If you enter a system item, the type set on the item’s definition will override the original defaulting value if necessary. Item/Revision Select from the list of values if ordering an item that’s already been defined in the item master. Once selected, the category, description, UOM and price will populate based on the item definition. If the system item has been placed under revision control, you must also select the appropriate revision number being ordered. If ordering items that have not been defined in the item master, skip the Item/Revision fields and manually enter a category, description, UOM and price. Category




A required field populated either from the predefined item’s definition or manually. You cannot change the purchasing category if you choose a system item. Description For system items, you can update the description only if that functionality has been enabled for item attribute controlling descriptions. The full item description for the current line is displayed beneath the Lines tabbed region. You must provide a description for one-time items. UOM (Unit of Measure) The UOM qualifies the quantity that will next be entered. Suppliers need to know whether you’re ordering 3 each, 3 boxes or 3 pounds. The value initially populates with the default set up for the line type selected, and is then overridden by the value set on the item definition. Quantity Enter the total quantity to be ordered. Promise/Need-By Dates Enter the date that you have requested delivery from the supplier in the Need-By date field. If you have communicated with the supplier who has committed to a delivery date, enter it in the Promise field instead. 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. Supplier Item If available, you can enter the number or name that the item has been assigned on the supplier’s item list. For example, our item master may have assigned a number/name in Oracle of “Pencils, Lead No. 2”, but the supplier’s number for the item in their system may be “12-7732”. Charge Account If an item is distributed to a single charge account, the account number is displayed for viewing purposes only, it cannot be updated directly in this window. If an item is being distributed to multiple charge accounts, the word “Multiple” will be displayed, requiring you to drill down to either the Shipment or Distribution level of the purchase order to see charge account combinations. Amount This is a display field which holds the results of the quantity ordered multiplied by the price.




Standard Purchase Order Line Price Reference Tabbed Region

Standard Purchase Order Line Price Reference Tabbed Region

ItemsPrice Reference

Num, List Price,Market Price, Price Type

Reference DocumentsMore

HEADER

LINE

SHIPMENT

DISTRIBUTION


Standard Purchase Order Line - Price Reference Tabbed Region

Num The system will automatically generate a unique line number for each line you create. List Price/Market Price When ordering predefined items, the list price and market price will default from the item’s definition if specified. You can either accept the defaults or make changes. 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.




Standard Purchase Order Line Reference Documents Tabbed Region


ItemsPrice ReferenceReference Documents

Num, Contract, Quotation,Line, Quotation Type,Supplier Quotation

More

HEADER

LINE

SHIPMENT

DISTRIBUTION


Standard Purchase Order Line - Reference Documents Tabbed Region

Num The system will automatically generate a unique line number for each line you create. Contract You cannot enter a contract number until you have entered a supplier in the header, and the contract must be for this supplier. The contract you choose must be effective; that is, the current date has to be within the effective date and the expiration date of the contract. If you reference a contract purchase agreement on a standard purchase order line, Purchasing adds the total amount of the purchase order line to the released amount on the contract purchase agreement. Purchasing lists only those contracts with the same supplier as the one on your standard purchase order. Quotation/Line/Quotation Type/Supplier Quotation These fields are display only and will be populated if you selected a quotation from the Supplier Item Catalog. These fields will also be populated if you have created sourcing rules and either associated a catalog with an approved supplier list (PO: Automatic Document




Sourcing = No) or have active, unexpired quotations in the system (PO: Automatic Document Sourcing = Yes). This catalog will be discussed later in this module.




Standard Purchase Order Line More Tabbed Region

Standard Purchase Order Line More Tabbed Region

ItemsPrice ReferenceReference DocumentsMore

Num, Note to Supplier,UN Number, Hazard,Capital Expense

HEADER

LINE

SHIPMENT

DISTRIBUTION


Standard Purchase Order Line - More Tabbed Region

Num The system will automatically generate a unique line number for each line you create. Note to Supplier Enter up to 240 characters of special information that needs to be communicated to the supplier. Notes at this level are specific to the particular line entered as opposed to notes to suppliers entered at the header level that pertain to all lines on the purchase order. If 240 characters are not sufficient, use the Attachments feature to add a text attachment that will print on the purchase order. UN Number/Hazard If applicable, enter the UN identification number for the item. Any default, if present, comes from the item definition. If you’ve entered a UN Number, the corresponding hazard class is displayed. Otherwise, you can enter a hazard class for this item. Capital Expense Indicates that the purchase is a capital expenditure that will be later integrated with Assets or some other asset system.




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


The Shipment section of the purchase order contains detail regarding quantities of items to be shipped by specified ship dates and to specified ship locations. When you save your work, Purchasing creates distributions if sufficient, valid, default information is available and if there are no existing distributions.




Standard Purchase Order Shipment Shipments Tabbed Region

Shipments More Status

Num

Org/Ship-To

UOM/Quantity

Need-By

Promised Date/ Original Promise

Charge Account

Amount

Standard Purchase Order Shipment Shipments Tabbed Region

Standard Purchase Order Shipment - Shipments Tabbed Region

Num The system will automatically generate a unique line number for each line you create. Org If you entered a system item, you can pick only inventory organizations in which the item is defined. If you entered a revision number on the purchase order line, then the item revision must also be defined in the inventory organization. If you did not enter an item, then you can select from a list of values of inventory organizations. Ship-To You can pick any location that is not tied to a specific inventory organization or any location whose associated organization matches the organization in the previous field. UOM/Quantity The first shipment line for any item will have the full quantity and UOM defaulting from the Items tabbed region previously discussed. If you decrease this quantity, Purchasing will automatically default the remaining quantity ordered that has not yet been placed on the




shipment line on the next shipment line you create. The total quantity of scheduled shipments for a particular line must sum to the quantity in the Items tabbed region. Need-By Enter a Need-By date. This field is optional unless the item is a planned item. This field is used in several reports that relate to analyzing supplier performance. Promised Date/Original Promise Enter the date that the supplier promised delivery of the items. If you are subsequently contacted by the Supplier with a different date, you will simply overwrite the previous promise date with the new promise date. When this is done, Purchasing shifts the original promised date into the Original Promise field so that supplier performance can be measured against these dates. If the supplier again extends the delivery date promised, you can again overwrite the promise date with the new promise date. The system will continue to maintain the promise date initially provided in the original promise date field. Supplier performance can then be measured for the time between the original promise date and the current promise date. Suppliers can themselves update their promised delivery date through the iSupplier Portal. Charge Account If a shipment is purchased from a single charge account, the account number is displayed for viewing purposes only, it cannot be updated directly in this window. If an item is being purchased from multiple charge accounts, the word “Multiple” will be displayed, requiring you to drill down to the Distribution level of the purchase order to see account numbers. Amount This is a display field which holds the results of the quantity ordered multiplied by the price.




Standard Purchase Order Shipment More Tabbed Region

Standard Purchase Order Shipment More Tabbed Region

Num

Receipt Close Tolerance (%)

Invoice Close Tolerance (%)

Invoice Matching

Accrue on Receipt

Firm


Standard Purchase Order Shipment - More Tabbed Region

Num The system will automatically generate a unique line number for each line you create. Receipt Close Tolerance (%) Purchasing automatically closes a shipment for receiving if it is within the receipt closing tolerance at the receiving close point. Set the receiving close point in the Purchasing Options window. Invoice Close Tolerance (%) Purchasing automatically closes a shipment for invoicing if it is within the invoice closing tolerance at billing, when Payables matches invoices to purchase orders or receipts. Invoice Matching Select which information will be compared to the invoice when matching. All must match within tolerance for the selected option.

• 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.

Accrue on Receipt Check box to indicate that the items on this purchase order line should be accrued on receipt. Inventory destined items always accrue upon receipt. For expense items, if the Accrue Expense Items flag in the Purchasing Options window is set to Period End, the items cannot accrue upon receipt, and you cannot change the shipment level default. If the Accrue Expense Items flag is set to At Receipt, the default is to accrue upon receipt, but you can change it to Period End. Firm A setting used with MRP to indicate to that module that it cannot change or suggest changes to the details of this purchase order based on changed demand that has occurred since the order was originally created.




Standard Purchase Order Shipment Status Tabbed Region


Num

Status

Ordered

Received

Canceled

Billed

Standard Purchase Order Shipment Status Tabbed Region

Standard Purchase Order Shipment - Status Tabbed Region

Num The system will automatically generate a unique line number for each line you create. Status This status will be updated by the system based on actions taken by buyers, receivers or accounts payable staff. Ordered/Received/Canceled/Billed Quantities will be displayed to indicate the quantities that have been ordered, received, cancelled and billed. Quantities are updated through actions taken by buyers, receivers and accounts payables staff.




Standard Purchase Order Shipment Receiving Controls Button

Standard Purchase Order Shipment Receiving Controls Button

HEADER

LINE

SHIPMENT

DISTRIBUTION


Receiving Controls

Standard Purchase Order Shipment - Receiving Controls Button

Use the Receiving Controls window to enter receiving control information for purchase orders and releases. Note that controls you enter here apply to specific purchase orders/releases and override the receiving controls you enter in the Receiving Options window.




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.


Use the purchase order Distributions window to enter distribution information for purchase order shipments and to view distributions that Purchasing has automatically created for you. You can enter multiple distributions per shipment line. You can also view on-line requisitions included on the purchase order enter paper requisition information in this window.




Standard Purchase Order Distribution Destination Tabbed Region

Standard Purchase Order Distribution Destination Tabbed Region

Num

Type

Requestor

Deliver-To/ Subinventory

Quantity

Charge Account

Accrual/Variance Accounts

Destination More Project

Standard Purchase Order Distribution - Destination Tabbed Region

Num The system will automatically generate a unique line number for each line you create. Type The destination type determines the final destination of the purchased items. Choose one of the following options:

• Expense - 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.

Requestor Enter the name of the person requesting the goods or services. If the purchase order was automatically created from approved requisition lines, this field would be populated with the name of the requestor on the requisition.




Deliver-To/Subinventory Enter the Deliver To location for this distribution. If the destination type is Inventory, you can also enter the Subinventory. Quantity Enter the Quantity of the purchase order shipment that you want to charge to the Accounting Flexfield. The default value comes from the quantity you enter in the Shipments window. If you decrease the default quantity, Purchasing automatically defaults on the next distribution line the remaining quantity you have not yet assigned to a distribution line. Charge Account Enter the Charge Account. When you save your changes in this window, Purchasing uses the Account Generator to automatically create the following three accounts for each distribution:

• Charge - The account to charge for the cost of this item • Accrual - The AP accrual account • Variance - The invoice price variance account




Standard Purchase Order Distribution More Tabbed Region

Standard Purchase Order Distribution More Tabbed Region

Num

Requisition Number/Line

Online


Standard Purchase Order Distribution - More Tabbed Region

Num The system will automatically generate a unique line number for each line you create. Requisition Number/Line and Online The Online check box indicates whether this distribution is part of an on-line requisition. If so, Purchasing checks the box and displays the on-line requisition number and line number, you cannot update this field. If this distribution does not come from an on-line requisition, enter the paper requisition number in this field. The default is the paper requisition number from the Purchase Order Preferences window, if entered.




Standard Purchase Order Distribution Project Tabbed Region

Standard Purchase Order Distribution Project Tabbed Region

Num

Project

Task

Expenditure Type

Expenditure Org


Standard Purchase Order Distribution - Project Tabbed Region

Num The system will automatically generate a unique line number for each line you create. Project/Task/Expenditure Type/Expenditure Org If this purchase is being charged to a Project, enter the appropriate project, task, expenditure type, expenditure org and expenditure item date.




Approve Standard Purchase Order


OK

Submit for Approval

Forward

Approval is the last step in creating a Purchase Order.

Approve Document

X


Integration with Workflow In Purchasing, all approvals are handled by Workflow. The Procurement Workflows are predefined workflows embedded in Purchasing. Workflow uses the approval controls and hierarchies you define during setup as the default approval processes. Status Your purchase order document will have the status Incomplete until you submit the document for approval. If you do not have sufficient approval authority, the status will be set to In Process and Workflow will forward the document to an appropriate approver. Once approval is obtained, the status is changed to Approved. Communicating Approved Purchase Orders to Suppliers Depending on how the supplier’s record has been defined, purchase orders may be sent by printed document, facsimile, email, XML or through electronic data interchange (EDI). The Approve Document window defaults the transmission method defined on the supplier, but you can update these defaults for a particular purchase order.




Guided Demonstration - Create a Standard Purchase Order (Required)

Responsibility: XXPurchasing, Vision Operations

(N) Supply Base > Suppliers

Enter an attachment on a supplier then create a standard purchase order.

Instructor Note: Ensure the PO: Automatic Document Sourcing profile option is set to No.

Add a Text Attachment to your Supplier

1. Navigate to the Suppliers window

2. (N) Supply Base > Suppliers

3. Query XXIBM Corporation

4. (I) Attachments

5. Category = To Supplier

6. Description = Misc T&C

7. Data Type = Long Text

8. Note = You decide

9. Save

Create a Standard Purchase Order

10. Open the Purchase Orders window:

11. (N) Purchase Order > Purchase Orders

12. Type = Standard Purchase Order

13. Supplier = XXIBM Corporation

14. Ship-to = M1-Seattle

15. Bill-to = V1-New York

16. Description = XXComputer Hardware

17. (T) Items




18. Enter the items according to the following table:

Num Item Quantity Price Promised Date

1 XXSoftware 10 450 Blank

2 XXMonitor 10 250 Blank

19. Save

Note: Need-by and Promised Date are only required for planned items. However, they are used in supplier performance reports.

Enter Terms and Conditions

20. Navigate to the Terms and Conditions window:

21. (B) Terms

22. Payment = Immediate

23. Select the Confirming Order check box.

24. Acceptance Required = Checked

25. Acceptance is required by tomorrow.

Note: The Send Notifications for Purchasing Documents concurrent request will send a notification to you if acceptance has not been recorded prior to the date you specify in this field. This request MUST be SCHEDULED to run in order for notifications to be sent!

26. Pay On = Blank

27. Add a note to the supplier. This note will be printed on the header of the purchase order.

28. Save

29. Close the Terms and Conditions window to return to the Purchase Orders window.

Enter Shipments

30. Place cursor in Item field for XXSoftware item.

31. (B) Shipments

32. Enter the following shipments for the XXExpensed item.




Num Org Ship-To UOM Quantity Promised

1 M1 M1-Seattle Each 4 In 1 month

2 M1 M1-Seattle Each 4 In 2 months


33. Save

34. (T) More

35. Enter information according to the following table:

Num Receipt Close

Tolerance (%) Invoice Close Tolerance (%)

Match Approval Level

Invoice Match Option

1 0 5 2-Way PO

2 0 5 2-Way PO

3 0 5 2-Way PO

36. Save

Note: This is will be a 2-Way match and I don’t anticipate performing any formal receiving. Setting the Receipt Close Tolerance to 0% is a good idea in this case. Once the invoice is matched to this purchase order, the status of the each shipment will automatically change to closed. Once all shipments are received, the status of the line will change to closed. As a result, no buyer intervention will be necessary to manually change the status of the line.

37. Close the Shipments window to return to the Purchase Orders window.

38. Place cursor in Item field for the XXMonitor item.

39. (B) Shipments

40. Enter the following shipments for the XXMonitor item.








41. Save

42. (T) More

43. Enter information according to the following table:

Num Receipt Close

Tolerance (%) Invoice Close Tolerance (%)

Match Approval Level

Invoice Match Option

1 10 5 3-Way PO

2 10 5 3-Way PO

3 10 5 3-Way PO

44. Save


46. Record your purchase order number.

Complete the Internal Distributions for the Expensed item

47. Click in the Item field for the XXSoftware item.

48. (B) Shipments

49. (B) Distributions

50. Complete the internal distribution according to the following table:

Num Type Requestor Quantity Charge

1 Expense Your name 4 01-520-7530-0000-000

51. Save

52. Close the Distributions window.

53. Repeat the steps above until EACH shipment has ONE AND ONLY ONE completed internal distribution.

54. Save




Complete the Internal Distributions for the Inventory item

55. Place cursor in the Item field for the XXMonitor item.

56. (B) Shipments



Num Type Requestor Subinventory Quantity

1 Inventory Smith, Mr. Jonathon Stores 4

Note: The type of the item is Inventory. For Inventory items, the charge account cannot be changed. Account generator builds it based on the accounts in the inventory organization!

59. Save


61. Repeat the steps above until EACH shipment has ONE AND ONLY ONE completed internal distribution.

62. Save

63. Close the Distributions and Shipments windows.

Approve the Purchase Order


65. (B) Approve

66. Submit for Approval = Checked

67. Uncheck all other options

68. (B) OK in the Approve Document window.

69. (B) OK to close the note window.

Note: The standard messages on the notes fields may be easily changed using the Application Developer responsibility.

Place your Purchase Order on the Navigator




70. Place your Purchase Order on the Navigator

71. (M) File > Place on Navigator

72. Note that your attachment has been automatically copied from your supplier to the purchase order header!

Verify Distribution Information

73. Query up your PO

74. Verify that each distribution for XXSoftware has requestor information recorded.

75. Verify that each distribution for XXMonitor has requestor and subinventory information is recorded




Practice - Create a Standard Purchase Order

Overview

In this practice, you will do the following:

• Create a standard purchase order for two defined items – one expense item and one inventory item.

• Create multiple shipment lines and multiple distribution lines for one or both of the items.

• Run select reports relevant to standard purchase orders.

Assumptions

• You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

• Responsibility selected to complete this practice is Purchasing, Vision Operations (USA).

• Replace XX with your terminal number or initials.

Tasks

Log on to the System

Create Standard Purchase Order header

Set Purchase Order preferences

Enter an expense item that you need to order

Enter shipments

Enter distributions for the first shipment

Enter distributions for the second shipment

Enter an inventory item that you need to order

Enter shipments






Submit your purchase order for approval

Run the Printed Purchase Orders Report (Landscape)

Run the Purchasing Activity Register




Solution - Create a Standard Purchase Order

Tasks

Log on to the System − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations

Create Standard Purchase Order header

1. Navigate to the Purchase Orders window

• (N) Purchase Orders > Purchase Orders − Type = Standard Purchase Order − Supplier = Advanced Network Devices − Site = Santa Clara − Ship-to = M1-Seattle − Bill-to = V1-New York City

2. Navigate to the Terms and Conditions window

• (B) Terms − Confirming Order = Check box − Acceptance Required = Check box − By = One week from today − Supplier Note = Add a note to your supplier




3. Close Terms and Conditions window

4. Save

Set Purchase Order preferences

5. Navigate to the Purchase Order Preferences window

• (M) Tools > Preferences − Requestor = Adams, Mr. Brian

6. Apply

7. Close the Purchase Order Preferences window


8. (T) Items − Num = 1 − Item = f30000

9. (B) OK to Blanket purchase order warning message − Quantity = 10




Enter shipments

10. Navigate to the Shipments window

• (B) Shipments

Enter the following shipments for this item:

Num Org Ship-to UOM Quantity Need-By

1 M1 M1-Seattle Each 4 In 1 week

2 M1 M1-Seattle Each 6 In 2 weeks




11. Save


12. Place cursor on the first shipment line

13. Navigate to the Distributions window

• (B) Distributions − Num = 1 − Quantity = 2 − Charge Account = Allow to default

14. Add another distribution − Num = 2 − Quantity = 2 (should have defaulted) − Charge Account = Allow to default, then override the department value to 730




15. Save


16. Place cursor on the second shipment line


• (B) Distributions − Num = 1 − Quantity = 6 − Charge Account = Allow to default

18. Save

Enter an inventory item that you need to order

19. Close the Distributions window and then the Shipments window (returning to the Purchase Orders window

20. (T) Items − Num = 2 − Item = AS72111




− Quantity = 10 − Price = $1,400

Enter shipments

21. Navigate to the Shipments window

• (B) Shipments

Enter the following shipments for this item:

Num Org Ship-to UOM Quantity Need-By

1 M1 M1-Seattle Each 4 In 1 week

2 M1 M1-Seattle Each 6 In 2 weeks

22. Save


23. Place cursor on the first shipment line


• (B) Distributions − Num = 1 − Subinventory = Stores − Quantity = 4 − Charge Account = Allow to default and try to override. Why can’t you override?




25. Save


26. Place cursor on the second shipment line


• (B) Distributions − Num = 1 − Subinventory = Stores − Quantity = 6

28. Save

Submit your purchase order for approval

29. Close the Distributions window, then the Shipments window (returning to the Purchase Orders window)

30. Navigate to the Submit for Approval window

• (B) Approve − Submit for Approval = Check box




− Uncheck all other options

31. (B) OK

32. (B) OK

33. Ensure that the status on the purchase order header is Approved

Run the Printed Purchase Orders Report (Landscape)

34. Navigate to the Submit Request window

• (N) Reports > Run − Name = Printed Purchase Order Report(Landscape) − Print Selection = All − Purchase Order Numbers From = Your standard purchase order number − [Purchase Order Numbers] To = Your standard purchase order number




35. (B) OK

36. (B) Submit




37. (B) No

38. Monitor progress and view output when complete

• (M) View > Requests

39. (B) Find

40. Once the request completes, (B) View Output

Run the Purchasing Activity Register


• (N) Reports > Run − Name = Purchasing Activity Register − Creation Dates From and To = Today’s date − Supplier = Advanced Network Devices

42. (B) OK




43. (B) Submit

44. (B) No



46. (B) Find





Agenda

Agenda







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


Blanket purchase agreements and releases allow you to negotiate stable, long-term contracts while maintaining flexible delivery schedules and order quantity commitments. You create blanket purchase agreements when you know the details of the goods or services you plan to buy from a specific supplier, but you do not yet know delivery schedule details. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them. A blanket purchase agreement is a type of purchase order you issue before you request actual delivery of goods or services. You normally create a blanket purchase agreement to document a long-term supplier agreement. A blanket release is an actual order of goods or services you issue against a blanket purchase agreement. The blanket purchase agreement determines the characteristics and the prices of the items. The release can be created manually or automatically.




Blanket Releases

Blanket Releases

Releases can be created:• Manually• Automatically

Demand generated

outside Purchasing

Requisition Create Releases Process

Blanket Release

Manual

Blanket Releases

Once you have an approved blanket agreement you need only create a release to authorize delivery of goods or services. You can create blanket purchase agreement releases using the following methods:

• The Releases window • PO Create Documents workflow • AutoCreate window • The Create Releases process

Manually Created Releases You can manually enter releases against active blanket purchase agreements. You can set up purchasing to warn you if a blanket purchase agreement exists for items that you try to requisition. Because the blanket purchase agreement is in place, you can create a blanket release instead of submitting a requisition. If you choose not to enable to warn if a blanket purchase agreement exists, can submit requisitions and the buyer can create the blanket release. Automatically Created Releases




Buyers can expedite creation of releases using the AutoCreate window or by submitting the Create Releases program. In addition, the PO Create Documents workflow can be set up to automatically create blanket purchase agreement releases for requisitions that are submitted, regardless of whether their origin is the Requisitions window or iProcurement.




Blanket Purchase Agreements Additional Information Entered

Blanket Purchase Agreements Additional Information Entered

Additional information isentered for blanket purchaseagreements in the header, lineand price breaks purchaseorder elements windows.

HEADER

LINE

SHIPMENTPRICE BREAKS

DISTRIBUTION


Blanket Purchase Agreements - Additional Information Entered

Purchasing Responsibility (N) Purchase Orders > Purchase Orders Focus of discussion - Rather than reiterate the many fields that have already been discussed during the creation of a standard purchase order, this section will highlight the differences between the blanket purchase agreement and the standard purchase order. Your instructor will review the previously discussed fields as needed during the demonstration of creating a blanket purchase agreement.




Blanket Purchase Agreements Additional Information - Header

Blanket Purchase Agreements Additional Information - Header

Header Lines Price Breaks

Amount Agreed

Released

Terms and Conditions

Blanket Purchase Agreements: Additional Information - Header

Amount Agreed When creating a blanket purchase agreement, you can indicate the dollar amount of the agreement. Released The dollar value displayed in this field is the total dollar value of all releases issued against the blanket purchase agreement. Terms and Conditions You can access the Agreement Controls area of the Terms button. The effective start and stop dates for the agreement can be entered. Releases can only be created during these dates when the blanket is effective. Amount Limit You can optionally change the defaulted value for the Amount Limit. Initially this value is equal to the Amount Agreed. You may provide a higher value in the Amount Limit field which will allow the total released amount to exceed the Amount Agreed. If the total amount released exceeds the Amount Limit, the release cannot be approved.




Minimum Release You can also specify a Minimum Release dollar value which will require that the dollar amount for individual releases exceeds the Minimum Release amount set. Often you establish the Minimum Release amount based on your estimated costs of processing individual releases. For example, if the estimated cost of processing releases is $25, then the user may set the Minimum Release amount to $25.




Blanket Purchase Agreements Additional Information - Lines

Blanket Purchase Agreements Additional Information - Lines


Items

Price Reference

Reference Documents

Agreement

Blanket Purchase Agreements: Additional Information - Lines

Items Tabbed Region Notice that the Quantity field has been grayed out. By definition of a blanket purchase agreement, you are uncertain of the quantities that will be needed of each item listed. The price that is entered for each item is for an implied quantity of one. Reduced pricing that may be available when purchasing larger quantities will be entered through the Price Breaks button that will be discussed shortly. Price Reference Tabbed Region The Allow Price Override check box is used for blanket purchase agreements and planned purchase orders only. This check box indicates that the release price can be different from the price on the purchase agreement or purchase order line. If you allow price override, enter the dollar amount of the Price Limit. This is the maximum price per item you allow for the item on this agreement line. If you do not allow a price override, Purchasing displays on the release the shipment price from the purchase agreement and prevents you from updating it. Select Negotiated to indicate that the purchase price is negotiated. If the actual price is greater than or equal to the list price, then the field is unchecked by default. If the actual price is less than




the list price, then the field is checked as the default. You can accept the default value or change it. Reference Documents Tabbed Region This tabbed region is generally not used on blanket purchase agreements unless the blanket was created by copying a quotation. Copying purchasing documents will be discussed later in this module. Agreement Tabbed Region You can establish controls at the line level if desired. Additional controls such as minimum release amount, quantity agreed and amount agreed can be established for individual purchase agreement lines. Whether or not you have agreed to minimum quantities or amounts, the system will automatically keep track on this tabbed region of the quantities and amounts actually released against the blanket. Internal quantity and amount targets not formally negotiated as agreed to quantities or amounts with the supplier should not be entered in the agreement. Entry of internal targets could be interpreted and enforced as legal binding to the user. The Cumulative Pricing check box will be enabled by default depending on a setup option in the Purchasing Options of the default value hierarchy. The default may be changed depending on the actual pricing negotiated with the supplier.




Blanket Purchase Agreements Additional Information - Price Breaks

Blanket Purchase Agreements Additional Information - Price Breaks


Quantity

Break Price

Discount (%)

Blanket Purchase Agreements: Additional Information - Price Breaks

After entering the Purchase Orders window and choosing a Type of Blanket Purchase Agreement, the button normally titled Shipments changes to Price Breaks. This form adjustment is necessary to support reduced pricing agreements for volume purchases. Quantity This quantity is not an ordered quantity, but simply a quantity that if purchased would result in reduced pricing. The quantity indicated may need to be reached on an individual release (when the Cumulative Pricing check box on the Agreement tabbed region previously discussed is unchecked) or may be able to be reached through an accumulation of releases issued against the blanket purchase agreement line (Cumulative Pricing check box is checked). Break Price You will enter the reduced price that will be paid for each quantity listed. Discount (%) If a Break Price is entered, the Discount (%) field will display the percentage that this price is off the price listed on the Items tabbed region for the purchase of an implied quantity of one.




Notification Controls


• 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



Use the Notification Controls window to enter notification controls for planned purchase orders, contract purchase agreements, and blanket purchase agreements. For these documents, you can establish expiration and release control notification conditions and specify the number of days before the condition is met that you want to be notified. When the notification conditions are met, Purchasing sends you an alert, using Alert (or e-mail). Amount Not Released This control notifies you when the total planned amount released to date is less than a preset amount or is less than the Amount Agreed on the blanket purchase agreement header multiplied by a preset percentage. For example, a user can enter an Effective To date for the Amount Not Released notification control of June 30. The user could further indicate a percentage of 50% (which the system will further calculate the dollar amount of $2.5M for this percentage and display it in the Amount field). The user would then be notified if on June 30, the total amount of releases did not exceed $2.5M. Rather than indicating a percentage, the user can provide a dollar amount and the system will calculate the percentage. Additionally, specified percentages may be set based on prior spending trends rather than passage of time as




appears to be the case in the example provided. You may also wish to establish multiple Amount Not Released notification controls throughout the period of the agreement. Amount Released This control notifies you when the total planned amount released to date is more than a preset amount or is less than the Amount Agreed on the blanket purchase agreement header multiplied by a preset percentage. For example, a user can enter Effective From/To dates for the Amount Released notification control of January 1 to March 31. Assume the user entered $2M as the amount (which the system will further calculate the percentage of 40% by relating the $2M to the $5M Amount Agreed). The user would then be notified if and when between January 1 and March 31, the total amount of releases exceeds the $2M. Similar to the discussion for the Amount Not Released, you may instead specify a percentage, set the amount based on prior spending trends rather than the passage of time, and may also establish multiple Amount Released notification controls throughout the period of the agreement. Expiration This control notifies you that the agreement is approaching expiration. The notification is sent at specified dates prior to the effective end date of the agreement. For example, the Warning Delay could be set at 90 for an agreement with a one year length. The system will then send a notification to the Buyer 90 days prior to the expiration of the one year agreement that the expiration is approaching. You often will set multiple Expiration notification controls to ensure that sufficient progress is being made toward negotiation of a new agreement with this supplier or a new supplier(s). This control is especially effective for items that should never be purchased outside of agreements.




Approve Blanket Purchase Agreement


OK

Submit for Approval

Forward

Approval is the last step in creating a Blanket Purchase Agreement

Approve Document

X


Similar to standard purchase orders, blanket purchase agreements need to be approved. Once approved, blanket releases can then be issued against the blanket purchase agreement.




Guided Demonstration - Create a Blanket Purchase Agreement (Required)


(N) Purchase Orders > Purchase Orders

Create a Blanket Purchase Agreement

1. Type = Blanket Purchase Agreement


3. Site = NEW YORK

4. Amount Agreed = 10000

5. Description = XXSupplies

Specify Terms and Conditions

6. (B) Terms

7. Effective = Today + 7 days

8. Amount Limit = 11000

9. Save

Note: The Amount Limit is the REAL control of whether or not releases against this blanket may be approved.

10. (T) Items

11. Select items according to the following table:

Num Item Category Description UOM

1 XXSoftware XX.COMPUTER Expensed Item Each

2 XXMonitor XX.COMPUTER Inventory Item Each

Specify Price Breaks

12. (B) Price Breaks




13. Enter the following price break information FOR EACH item!

Num UOM Quantity Price Org Ship-To Discount%

1 Each 10 Defaults M1 M1 - Seattle 10



14. Save

15. Close the Price Breaks window.

Specify Notification Controls

16. Open the Notification Controls window:

17. (M) Tools > Notification Control

18. Condition = Expiration

Note: If the Warning Delay field does not become enabled, double check to make sure you entered effective dates in the Terms and Conditions window!

19. In the From and To fields, set for 30, 60, and 90 days.

Condition Warning Delay From To

Expiration 2 Defaults Defaults



20. Save

21. (B) Done

Note: These Notifications are controlled using Oracle Alerts. The alerts must be activated in order for the conditions to be checked and the notifications to be sent.

22. Record your Blanket Purchase Agreement number.

23. (B) Approve






26. (B) OK

27. (B) OK in the Note window




30. Close windows until you are back at the Navigator




Blanket Purchase Agreement and Blanket Releases



Release #/$sCumulative Release $s

#101 $ 5,000 $ 5,000

#120 $12,000 $17,000

#208 $ 9,000 $26,000


Once a blanket purchase agreement has been approved, you can begin creating blanket releases against the agreement. Suppliers will be provided the additional information, such as quantities and shipping details, needed to make actual delivery of the items on the agreement. Details regarding releases are covered in the next few pages. Once you have provided complete shipment and distribution detail, the release needs to be approved before it is sent to the supplier. The approval process for releases is the same as the approval process for the blanket purchase agreement.




Blanket Releases Structure - Header


Shipment 1

Release Header

Distribution 1 Distribution 2

Blanket # Release # Supplier/Site Buyer Status Total Acceptance Req’d


Release Header When creating a new release, you will enter the blanket purchase agreement number. A list of values is available to assist you in selecting the appropriate agreement. Once selected, the next available release number will be assigned and the supplier, site and buyer from the agreement will be displayed. You can override the default as long as the Enforce Buyer Name option is not enabled in the Purchasing Options window. The status will be updated based on actions taken in the system. A total amount for the release will be displayed as items are ordered in the Shipments window. You can further indicate to MRP whether this release is firm or can be changed and whether acceptance is requested of the supplier to acknowledge that they received the release. Receiving Controls Button Use the Receiving Controls window to enter receiving control information for purchase orders and releases. Note that controls you enter here apply to specific purchase orders/releases and override the receiving controls you enter in the Receiving Options window. Agreement Button




You can access basic information regarding the blanket purchase agreement through the Agreement button. For example, you will see amount agreed, buyer, amount released, status, effective dates and various payment terms from the blanket purchase agreement.




Blanket Releases Structure Shipments and Distributions

Blanket Releases Structure Shipments and Distributions

Tabbed RegionsDestination More Project

Tabbed RegionsShipments More Status Item

Shipment 1

Release Header

Distribution 1 Distribution 2

Blanket Releases Structure - Shipments and Distributions

Shipments Tabbed Region Entry into this tabbed region is exactly like entry of shipments information on the shipments tabbed region of the standard purchase order with one exception. When you enter the Line field, you are simply entering the line number for the item you want to order from the blanket purchase agreement. Unless a user knows what the line number is, you should access the list of values which will provide the item name and description in addition to the line number. Once the line number is selected, the associated item name and description are displayed near the bottom of the window. More, Status and Item Tabbed Region Entry into these tabbed regions is exactly like entry of shipments information on the the same tabbed regions of the standard purchase order. Distributions Window Entry into all tabbed regions of the distributions window is exactly like entry of distributions information on the the same tabbed regions of the standard purchase order.




Guided Demonstration - Create a Blanket Release (Required)


(N) Purchase Orders > Releases

Create and Approve a Release

1. In the PO, Rev field, use the list of values to select your blanket purchase agreement number.

2. (T) Shipments

3. Place cursor in the Line field

4. [Ctrl + L] to invoke the List of Values

5. Note the lines you see are the two lines from your Blanket Purchase Agreement!

6. Select the XXSoftware item.

7. (B) OK

8. Organization = M1

9. Ship-To = M1-Seattle

10. Quantity = 10

11. Promised = Today’s date

12. Save

13. (B) Approve



16. (B) OK to approve the Release

17. Click OK to close the note window.

18. (B) Agreement

19. Note the total amount released against the blanket purchase agreement.




Practice - Create a Blanket Purchase Agreement and Blanket Release

Overview


• Create a blanket purchase agreement for two items which will establish pricing for the items, although the quantity and delivery dates/locations are not known.

• Create a blanket release against the agreement for your first order of these items.

Assumptions




Tasks


Create a blanket purchase agreement

Enter your first item - Paper

Enter price breaks for volume purchases

Enter your second item - Desk


Enter notification controls so that you’ll be warned by the system of certain situations that are either expected or might occur with this blanket purchase agreement.

Submit your purchase agreement for approval

Issue a blanket release to place your first order against the agreement

Submit your blanket release for approval




Increase your quantity ordered to 3 so that the release will be above the minimum release amount


Return to the Blanket Purchase Agreement to view how it was updated as a result of the release

Run the Purchase Order and Releases Detail Report




Solution - Create a Blanket Purchase Agreement and Blanket Release


Create a blanket purchase agreement


• (N) Purchase Orders > Purchase Orders − Type = Blanket Purchase Agreement − Supplier = Southern Office Supplies − Site = SOS MAIN − Ship-to = M1-Seattle − Bill-to = V1-New York City − Amt Agreed = $20,000


• (B) Terms − Pay On = Blank − Agreement Controls/Effective Dates = Enter dates starting Today and extending for

one year − Amount Limit = $21,000 − Minimum Release = $50





4. Save

Enter your first item - Paper

5. (T) Items − Num = 1 − Item = f20000


6. Navigate to the Price Breaks window

• (B) Price Breaks

Enter the following price breaks for this item:

Num Org Ship-to Quantity Break Price

1 M1 M1-Seattle 10 $19.00

2 M1 M1-Seattle 20 $18.00

3 M1 M1-Seattle 30 $17.00

7. Save




Enter your second item - Desk

8. (T) Items − Num = 1 − Item = f11000 − Price = $1,000.00


9. Navigate to the Price Breaks window

• (B) Price Breaks

Enter the following price breaks for this item

Num Org Ship-to Quantity Break Price

1 M1 M1-Seattle 5 $950.00

2 M1 M1-Seattle 10 $900.00

3 M1 M1-Seattle 15 $850.00

10. Save




Enter notification controls so that you’ll be warned by the system of certain situations that are either expected or might occur with this blanket purchase agreement.

11. Close the Price Breaks window

12. Navigate to the Notification Controls window

• (M) Tools > Notification Control

Enter controls to warn you of upcoming expiration of the agreement 120 days prior and 60 days prior to the effective end date.

Condition Warning Delay From To % Amount

Expiration 120 Defaults Defaults N/A N/A

Expiration 60 Defaults Defaults N/A N/A

Enter controls to warn you if by 6 months into the agreement, you haven’t released at least 50% of the amount agreed.

Condition Warning Delay From To % Amount

Amount Not Released N/A Today Six Months from Today

50 Default




13. (B) Done

14. (B) OK

Submit your purchase agreement for approval


• (B) Approve − Submit for Approval = Check box − Uncheck all other options

16. (B) OK

17. (B) OK

18. Ensure that the status on the purchase order header is Approved and record your blanket number __________

Issue a blanket release to place your first order against the agreement

19. Navigate to the Releases window

• (N) Purchase Orders > Releases − PO, Rev = Your PO number from the blanket agreement

20. (T) Shipments




− Line = open the list of values and select the f20000-Paper item − Quantity = 2 − Need-By = One week from today



• (B) Approve




22. Why can’t it be approved?

23. (B) OK

Increase your quantity ordered to 3 so that the release will be above the minimum release amount

24. Place your cursor in Quantity field and increase to 3

25. Save




27. (B) OK

28. (B) OK

Return to the Blanket Purchase Agreement to view how it was updated as a result of the release


• (N) Purchase Orders > Purchase Orders

30. Using either find or query functionality, locate your blanket purchase agreement

31. Notice the value in the Released field is $60 – the amount of your first release.

32. What would happen to this value if you issue another release with a value of $1,800?




Run the Purchase Order and Releases Detail Report


• (N) Reports > Run − Name = Purchase Order and Releases Detail Report − Purchase Order Numbers From = Your blanket purchase agreement number − [Purchase Order Numbers] To = Your blanket purchase agreement number




34. (B) OK

35. (B) Submit

36. (B) No



38. (B) Find





Agenda

Agenda







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


Definition You create contract purchase agreements with your suppliers to agree on specific terms and conditions without indicating the goods and services that you will be purchasing. A contract purchase agreement is an agreement between you and a supplier for unspecified goods or services. This agreement may include terms and conditions, committed amount and an effective and expiration date. Contract purchase agreements are referenced on standard purchase order lines. Purchasing monitors the amount you have spent against contract purchase agreements. Focus of discussion Rather than reiterate the many fields that have already been discussed during the creation of a standard purchase order, this section will highlight the differences between the contract purchase agreement and the standard purchase order. Your instructor will review the previously discussed fields as needed during the demonstration of creating a contract purchase agreement.




Contract Purchase Agreements Additional Information Entered

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

Contract Purchase Agreements: Additional Information Entered

Purchasing Responsibility (N) Purchase Orders > Purchase Orders Header This agreement may include terms and conditions, committed amount, and effective and expiration dates. Amount Agreed When creating a contract purchase agreement, you can indicate the dollar amount of the agreement. Released The dollar value displayed in this field is the total dollar value of all standard purchase order lines referencing the contract. Terms and Conditions You can access the Agreement Controls area of the Terms button. The effective start and stop dates for the contract can be entered. Standard purchase orders can only reference the contract during its effective dates. Part of the terms and conditions could include a percentage discount




off list prices for all products the supplier sells or different discounts for different groups of products. For example, maybe they’ll give you a 10% discount on equipment and a 20% discount on office supplies. You can optionally change the defaulted value for the Amount Limit. Initially this value is equal to the Amount Agreed. You may provide a higher value in the Amount Limit field which will allow the released amount to total in excess of the Amount Agreed, but not higher than the Amount Limit. Compliance with agreed upon terms and conditions will be monitored after purchases are made to ensure things like item pricing or delivery times are in agreement with any discounts stated in the contract. Line, Shipment and Distribution Windows Although these windows appear as part of the Purchase Order form, you cannot enter these details on a contract purchase agreement. These details will be provided once the contract is approved as standard purchase orders are issued with reference to the contract.






ItemsPrice ReferenceReference Documents

Num, Contract, Quotation,Line, Quotation Type,Supplier Quotation

More

HEADER

LINE

SHIPMENT

DISTRIBUTION


Standard Purchase Order Line - Reference Documents Tabbed Region

Contract You cannot enter a contract number until you have entered a supplier in the header, and the contract must be for this supplier. The contract you choose must be effective; that is, the current date has to be within the effective date and the expiration date of the contract. If you reference a contract purchase agreement on a standard purchase order line, Purchasing adds the total amount of the purchase order line to the total amount of the contract purchase agreement after the purchase order is approved. Purchasing lists only those contracts with the same supplier as the one on your standard purchase order. Automating Purchase Order Generation Automatic generation of standard purchase orders referencing contract purchase agreements can be done using the PO Create Documents workflow. For more information see the Automatic Document Creation topic or refer to the “Workflow for Creating Purchase Orders and Releases” topic in the Purchasing Users Guide.




Guided Demonstration - Create a Contract Purchase Agreement (Required)



Create a Contract Purchase Order

1. Type = Contract Purchase Agreement


3. Site = NEW YORK

4. Ship-To = M1-Seattle

5. Bill-To = V1-New York

6. Amount Agreed = 10000

7. Save

8. Record the number of your Contract Purchase Agreement.


9. (B) Terms

10. Payment Terms = Immediate

11. Effective From = Today

12. Effective To = One week from today

13. Amount Limit = 10000

14. Save

15. Close the Terms and Conditions window.

Approve the Document

16. (B) Approve






19. (B) OK






Associate with Contract with Standard Purchase Order Lines

24. Create a standard purchase order.

25. Select the Reference Documents tab and enter the contract agreement number.

26. Save and approve your purchase order.

27. Record the number of your standard purchase order.

Note: If the total amount of the purchase orders associated with the contract exceeds the contract, the purchase order cannot be approved.




Practice - Create a Contract Purchase Agreement

Overview


• Create a contract purchase agreement to establish general terms and conditions with this supplier. Items, quantities and delivery dates/locations are not known.

• Create a standard purchase order referencing the contract.

Assumptions




Tasks


Create a contract purchase agreement

Submit your contract agreement for approval

Issue a standard purchase order referencing the contract


Submit your standard purchase order for approval

Return to the Contract Purchase Agreement to view how it was updated as a result of the release

Run the Contract Status Report




Solution - Create a Contract Purchase Agreement


Create a contract purchase agreement


• (N) Purchase Orders > Purchase Orders − Type = Contract Purchase Agreement − Supplier = Consolidated Supplies − Site = DALLAS − Ship-to = M1-Seattle − Bill-to = V1-New York City − Amt Agreed = $10,000


• (B) Terms − Payment Terms = Immediate




− Agreement Controls/Effective Dates = Enter dates starting Today and extending for six months

− Amount Limit = $10,000


4. Save

Submit your contract agreement for approval



6. (B) OK

7. (B) OK

8. Ensure that the status on the purchase order header is Approved and record your contract number __________

Issue a standard purchase order referencing the contract


• (N) Purchase Orders > Purchase Orders − Type = Standard Purchase Order




− Supplier = Consolidated Supplies − Site = DALLAS − Ship-to = M1-Seattle − Bill-to = V1-New York City


10. (T) Items − Num = 1 − Item = AS80001 − Quantity = 10 − Price = $50.00 − Need-By = Two weeks from today

11. (T) Reference Documents − Contract = Your PO number that was assigned to the contract.

12. Enter shipments for this item

• (B) Shipments − Org = M5 − Ship-To = M5-Denver

13. Enter distributions for this shipment




• (B) Distributions − Subinventory = Stores

14. Save

Submit your standard purchase order for approval



16. (B) OK

17. (B) OK

18. Ensure that the status on the purchase order header is Approved and record your contract number __________

Return to the Contract Purchase Agreement to view how it was updated as a result of the release


• (N) Purchase Orders > Purchase Orders

20. Using either find or query functionality, locate your contract purchase agreement

21. Notice the value in the Released field is $500 – the amount of your first release.

22. What would happen to this value if you issue another release with a value of $2,000?




Run the Contract Status Report


• (N) Reports > Run − Name = Contract Status Report − PO Numbers From and To = Your contract purchase agreement number

24. (B) OK




25. (B) Submit

26. (B) No



28. (B) Find





Agenda

Agenda







Purchase Order Inquiry

• 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



You will frequently need to find information from a purchase order. Several options are available to assist you in this effort. Use the Purchase Order Summary Windows You can enter a variety of search criteria to locate records at the header, line, shipment or distribution levels of the purchase order. Buttons located at the bottom of the form allow you to view more or less detail than the level at which you initially searched. For example, assume you initially searched for shipment lines. From there you can move higher on the purchase order to view items or you can drill down to view distributions. Optionally, you can create a custom user layout of this form using Oracle’s folder technology. Custom layouts can be defined as the default folder and can be shared with others. Use the Tools Menu to View Associated Records From the purchase order lines, you can view associated requisitions, receipts, and invoices. Some of the associated documents can only be viewed when query results are at a particular level of the purchase order. For example, you cannot view associated requisitions when




viewing purchase order query results at the header level. Additionally, you can view a history of activities performed on each document. This functionality is available through the Tools menu, View Action History option on many windows. Activities will be listed in chronological order with the most recent activity appearing first. Use the Purchase Order Window You can look for purchase order information using either query or find functionality.




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


Once the desired purchase order is brought to the current record using the various methods previously discussed for locating documents, you can make necessary changes to the document. For example, you may adjust quantities, shipping addresses, need-by dates, distributions, etc. Affect of Changes on Approval Most changes cause the document’s status to be updated to Requires Reapproval. Once the document has been reviewed by someone with approval authority, they will either approve or reject the document. Generally, all changes affecting the supplier’s ability to accurately fill the order will require reapproval. Controlled changes unapprove either the document header alone or both the header and its shipments. However, you can continue to receive against approved shipments even when the header is unapproved. Revision Numbering of Purchase Orders Depending on the type of modification made to a purchase order, Purchasing may increment the revision number on the document.




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


Purchase orders can be printed on demand or through a scheduled print process. Purchase orders sent to suppliers need to be approved. Various criteria are available as parameters on the Printed Purchase Order report to selectively print certain purchase orders. For example, you could print only new purchase orders or only changed purchase orders or both. You could print a single purchase order or a range of purchase orders and also have the option of printing in test mode if needed. You will frequently reformat the output of the Printed Purchase Order Report delivered with the system. Typical changes made include adding company logos, background design or borders and outlines. You can make these report changes by taking a copy of the current report and then adjusting the copy using Oracle Reports (included in the Developer suite of applications).




Creating Purchase Order Revisions


Two “Archiving” Options

At the time of approval

At the time of printing


Purchase order revisions are created through archiving which is the process of recording all historical versions of approved purchase orders. Purchasing automatically archives a purchase order when you approve it for the first time. Purchasing subsequently archives your purchase orders either during the reapproval process or as a result of printing. You can create multiple revisions of your purchasing documents (standard purchase orders, planned purchase orders, blanket purchase agreements and contract purchase agreements). All revisions begin at 0, and Purchasing increments this revision number by 1 when you make changes to controlled information and the current revision number is equal to the archived number. Purchasing prints the most current revision to send to the supplier. As a result, the first revision that you print might not be 0 if you are archiving on approval. If you’re sending purchase orders through EDI, then archiving must be set to approval rather than printing. Use the Document Types window to set whether each of these documents is archived upon approval or upon printing. This window will be discussed in more detail in the Document Security, Routing and Approval module.




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

Action ArchiveRevision

CurrentRevision

ArchiveRevision

CurrentRevision

Approval Printing

None

0

0

0

0

0

1

1

0

0

0

0

0

1

1

1


At the Time of Approval When archiving is set to occur at the time of approval, revision numbers may be generated more frequently. Therefore, revision numbers will generally be higher on documents when using this option. At the Time of Printing When archiving is set to occur at the time of printing, revision numbers may be generated less frequently. Therefore, revision numbers will generally not be as high on documents when using this option.




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


Above is an example of a typical cycle for purchase order statuses. The initial status is Incomplete until submitted for approval. The status is updated to In Process until it is either Pre-Approved, Approved or Rejected. Once approved, many changes made to purchase orders result in a status of Requires Reapproval. Once reapproved, the status is again Approved. Where to Update Statuses Purchase order statuses can be updated either in the Purchase Order window or in the Purchase Order Summary window. Actions available to effect statuses will be different dependent on the current document status and where you are updating. Review of Status Types

• Incomplete - Initial status on all new purchase orders. • In Process - Status of the document when it’s sitting on the “desk” of the approver

identified in your security, routing and approval setups.




• Approved - A user with sufficient authority has reviewed and approved the document. • Rejected - Status of the document when the approver has denied approval. • Requires Reapproval - Status of the document when controlled changes have been made

to the document. • Frozen - You can freeze only at the header and release level. You freeze a purchase

order when you want to prevent any future modifications to the purchase order. When you freeze a purchase order, you can still receive and pay for goods you already ordered.

• On Hold -You can place a purchase order on hold only at the header level. This unapproves the purchase order while preventing printing, receiving, invoicing, and future approval until you remove the hold.

• Closed - Purchasing automatically closes shipments for receiving and invoicing based on controls that you specify in the Purchasing Options window. Once all shipments for a given line are closed, Purchasing automatically closes the line. When all lines for a given header are closed, Purchasing automatically closes the document. Purchasing does not include closed shipments in the Open Purchase Order reports.

- Closed for Receiving - You can close for receiving at the header, release, line, and shipment levels. Note that if you close for receiving a purchase order header that is currently open, Purchasing sets the status of all purchase order shipments to Closed for Receiving, but the purchase order lines and header remain open.

- Closed for Invoicing - You can close for invoicing at the header, release, line, and shipment levels. Note that if you close for invoicing a purchase order header that is currently open, Purchasing sets the status of all purchase order distributions to Closed for Invoicing, but the purchase order lines and header remain open. The Close for Invoicing status does not prevent you from matching an invoice to a purchase order or to a receipt. You can close and reopen documents and their components for invoicing and receiving using the Control Document window.

• Open - You can reopen documents (at the header, release, line and shipment levels) that have been previously closed to allow additional actions to be performed.

• Canceled - Purchasing lets you terminate an existing commitment to buy from a supplier by canceling document headers, lines, shipments, or releases. When you cancel a purchase order entity, you are unable to receive or pay for cancelled items and services, however, you can pay for all previously received orders. Canceled actions are permanent and can not be reversed. If you are using online requisitions, Purchasing returns unfilled requisitions associated with cancelled purchase order entities to the requisition pool based on the Cancel Requisitions control you specify in the Purchasing Options window.

• Finally Closed - Prevent modifications to or actions against completed documents, lines, and shipments by final closing them. Final-closed documents are not accessible in the corresponding entry forms, and you cannot perform the following actions against final-closed entities: receive, transfer, inspect, deliver, correct receipt quantities, invoice, return to supplier, or return to receiving. You can approve documents that include final-closed entities, but you cannot approve documents that are final closed at the header level. Final closing documents is an internal control action that has no bearing on your contractual relationship with the supplier. You cannot undo a final-close action.




Note: Only documents that have never been approved can be deleted. Optionally, you can delete unapproved lines, unapproved shipments and unapproved distributions added to previously approved documents. Deleted records cannot be viewed once the action is saved. If you are using automatic numbering, you cannot reuse document numbers that you delete with this option. If you use online requisitions, Purchasing returns all requisitions associated with your delete action to the requisition pool. You can reassign these unfilled requisitions to other purchase orders or releases.




Entering Purchase Order Acceptances

Entering Purchase Order Acceptances

• Action• Action Date• Accepted By• Accepted• Acceptance Type

Entering Purchase Orders Acceptances

When you select the Acceptance Required check box in the terms and conditions of purchasing documents, you require your supplier to formally accept your purchase agreement offer. By choosing Acceptances from the Tools menu from the Purchase Order and Releases window, you can access the window to enter acceptances. Suppliers can enter their own acceptances using iSupplier Portal Action Enter the results of your supplier follow-up. This a free-form field with no list of values. You can easily record the type of follow-up you performed such as Follow-up telephone call, Follow-up letter, or Fax follow-up. You can also use this field to record the outcome of the follow-up such as Will call back, No answer, Schedule slippage, or Cannot fulfill order. Action Date Enter the date the action occurred on. The default is today’s date, but you can override to another date. Accepted By Enter the person who performed the action. Your name is the default, but you can change to any other name from the employee list of values displayed.




Accepted Check this box to indicate that the supplier accepted the purchase order. Acceptance Type Select the acceptance type from the seeded options below.

• Accepted All Terms - The supplier accepted all the terms of the purchase order. • On Schedule - The supplier agreed to meet the delivery dates on the purchase order. • Unacceptable Changes - The supplier made modifications to the terms of the purchase

order that you do not find acceptable. You can define additional acceptance types through the Purchasing Lookup Codes.




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


REQ#577 requires your reapproval.


REQ#583 has been rejected.


The workflow PO Send Notifications for Purchasing Documents notifies you of various situations that have occurred with your purchasing documents. Among the situations for which you’ll be notified include documents with statuses of incomplete, rejected, or requires reapproval. This workflow will also notify you when the date supplier acceptances were requested has passed without acknowledgement of their acceptance. You can view and respond to these notifications through the Notifications Summary window. This workflow process is initiated by submitting the Send Notifications for Purchasing Documents process. You will normally schedule that process to run on at least a daily basis.

Opening a Document From a notification that you have opened, you can also drill down to the document. Depending on the function security assigned to your responsibility, you have varying levels of access to information. After you modify a document opened through the notification, you must return to the notification and choose Approve there, not in the document itself, so that Purchasing can record your approval action and continue with or complete the approval process. Depending on the notification message, recipients will be able to take actions such as approve, reassign, forward, reject, ignore, or close.




Copying Purchase Orders

Blanket purchase agreementSelf-defined Catalog orStandard quotation

(Catalog quotation class)

Blanket purchase agreementCatalog or Standard quotation (Catalog quotation class)

Standard or plannedpurchase order

Self-defined Bid quotation (Bid quotation class)

Standard or planned purchase order

Bid quotation(Bid quotation class)

Planned purchase orderPlanned purchase order

Blanket Purchase Agreementor RFQ

Blanket Purchase AgreementStandard Purchase OrderStandard Purchase Order

TOFROM



You can copy purchase orders of any status. Above is a list of the documents that can be copied from and to. This feature is particularly helpful if, for example, you want to renew a blanket purchase agreement that contains hundreds of lines. Rather than manually entering the same lines again into a new document, you can copy the previous agreement to a new agreement and change the effectivity dates. How to copy documents:

• Query the document you want to copy from the Purchase Orders, Purchase Order Summary, or Quotations windows.

• Choose Copy Document from the Tools menu. • Select an eligible To Document Type. • Select other options if needed.

- Document Number: Enter a document number only if you use manual numbering. - Copy Attachments: Check this box to copy an attachment from any level of the

document.




Purchasing creates and displays the new document. The document is an exact copy of the original except for the Promised and Need-By dates; if these dates are past dates, they change to today’s date on the new document. Effectivity dates, if any, do not change. Modify the document if needed. Save and approve the document. If information in the document you have just copied is invalid or outdate. For example, if a supplier or account is inactive or invalid, a message window appears after you choose Approve. Use this window to help you identify and correct invalid or outdated fields in the new document you are creating. You cannot approve the document until you update these fields appropriately. You cannot use the Copy Documents window to modify documents by copying from one document to another with the same document number.




Agenda

Agenda







Reports

Reports

Blanket and Planned PO Status Report

Canceled Purchase Orders Report

Contract Status Report

Printed Change Orders Report (Landscape)

Open Purchase Orders Report (by Buyer)

Open Purchase Orders Report (by Cost Center)

Reports

Blanket and Planned PO Status Report Review blanket and planned purchase orders and related releases. Canceled Purchase Order Report Review canceled purchase orders. Contract Status Report Review the status of contracts and list purchase orders regarding each contract. Open Purchase Orders Report (by Buyer) Review all or specific purchase orders for specific buyers. Open Purchase Orders Report (by Cost Center) Review all or specific purchase orders charged to one or more cost centers. Printed Change Orders Report (Landscape) Print changed purchase orders in landscape




Reports

Reports

Printed Purchase Order Report (Landscape)

Printed Purchase Order Report (Portrait)

Purchase Agreement Audit Report

Purchase Order Distribution Detail Report

Purchase Order Commitment by Period Report

Purchase Order Detail Report

Printed Change Orders Report (Portrait)

Reports (continued)

Printed Change Orders Report (Portrait) Print changed purchase orders in portrait format. Printed Purchase Order Report (Landscape) Print purchase orders in landscape format. Printed Purchase Order Report (Portrait) Print purchase orders in portrait format. Purchase Agreement Audit Report Review items purchased on a standard order that could have been purchased on a blanket. Purchase Order Commitment by Period Report Review the monetary value of commitments for the next six periods for one or all suppliers. Purchase Order Detail Report Review details for all or specific standard or planned purchase orders. Purchase Order Distribution Detail Report Review accounting distributions for purchase orders.




Reports

Reports

Purchase Summary Report by Category

Purchasing Activity Register

Purchase Order and Releases Detail Report

Reports (continued)

Purchase Order and Releases Detail Report Review details (quantity ordered, received, billed and expected) for blanket purchase agreements, planned purchase orders and associated releases. Purchase Summary Report by Category Review the number of orders placed with suppliers for a given category. Purchasing Activity Register Review purchase order monetary activity for a period of time.




Summary

Summary

You should now be able to do the following:• Create standard, blanket and contract

purchase documents• Create blanket purchase agreement releases• Maintain purchase orders• Identify key reports• Understand setup options• Understand additional implementation

considerations




Automatic Document Creation Chapter 8 - Page 1

Automatic Document Creation Chapter 8




Automatic Document Creation

Automatic Document Creation





Procure to Pay LifecycleRequisitions

Purchase Orders

Receiving

Reporting

Invoice/ Payment


Supplier management

RFQs/ Quotations

Catalog Content

Management

Sourcing

Ordering

Analysis




Objectives

Objectives

After completing this module you should be able to do the following:• Use the AutoCreate window to automate the

creation of purchase documents• Use the Create Releases program to generate

blanket purchase agreement releases• Understand how the PO Create Documents

workflow can automatically create purchase documents without buyer intervention




Agenda

Agenda

• Understand AutoCreate• Understand the Create Releases program• Understand the PO Create Documents workflow• Understand setup options• Understand additional implementation

considerations




Creating Purchase Documents from Requisitions


Requisition Pool

WorkflowCreateReleases

AutoCreate

Purchase Documents


AutoCreate The AutoCreate window can be used to search for approved requisitions in the requisition line pool. Those requisitions can be used as a basis for creating RFQs, standard purchase orders, blanket purchase agreement releases and planned purchase orders. Buyer intervention is required to search the requisition pool and create the purchase documents. Use the Create Releases Program The Create Releases program is a concurrent request that may be scheduled to run periodically. The Create Releases program can be used to generate blanket purchase agreement releases. Buyer intervention to be eliminated for certain types of purchases by using the Create Releases program. Workflow The PO Requisition Approval workflow automatically runs the PO Create Documents workflow. Depending upon your implementation decisions, the PO Create Documents workflow will end with unapproved or approved standard purchase orders or blanket purchase agreement releases. Using the PO Create Documents workflow can make it possible to eliminate buyer intervention for certain types of purchases.




Benefits of Using AutoCreate

Benefits of Using AutoCreate

• Simplifies consolidation of similar requests• Ensures ordering from negotiated sources• Expedites fulfillment of goods and services• Streamlines procurement process

Benefits of using AutoCreate

The AutoCreate window can be used to search for requisition lines for specific items or similar items. After finding requisition lines, you can make decisions about how to consolidate similar requests and ensure the resulting purchase documents are sent to the appropriate suppliers.




Overview of AutoCreate


Requisitionlinepool

Query available requisition lines

POChoose lines

fromquery results

Automaticcreation

Manualcreation

PO


Purchasing Responsibility (N) AutoCreate Requisition Line Pool To create blanket purchase releases, standard purchase orders or planned purchase agreements, the requisition line must have a status of Approved and not be associated with an existing purchase document. For RFQs the requisition lines do not need to have a status of Approved. Externally sourced requisition lines can be for system items (including outside processing items) or one-time items (a description and a category). Internally sourced requisition lines are supplied by internal sales orders and are not available for AutoCreation. Automatic Creation Use Automatic Creation mode to create purchase orders, blanket releases, planned purchase orders or RFQs with a minimum number of keystrokes.




Manual Creation Use manual creation mode to create purchase orders, blanket releases, planned purchase orders or RFQs and control the placement and grouping of requisition lines. Note: Internally sourced requisition lines are supplied by internal sales orders, so they are not available for autocreation. Internal requisitions will be covered in an advanced topic.




Automatic Creation Mode


1. Find requisition lines2. Select document creation criteria3. Select requisition lines4. Choose the Automatic button


You provide search criteria to locate the requisition lines you want to place on a purchase order or RFQ. After reviewing the requisition lines, you select all lines that you want. Then you select the Automatic button to create the purchase order or RFQ. You have the option to group requisition lines with the same item, revision, line type, unit of measure, and transaction reason into individual purchase order lines. Similarly, you can group requisition lines with the same item, revision, and line type into individual RFQ lines. Use automatic creation mode when:

• A majority of the requisition lines that your search criteria located are items you want to place on the document.

• You want Purchasing to determine where to place the requisition lines on the document. • You want Purchasing to combine similar requisition lines. • You are creating or adding to a release. • You are using Requisition grouping.




Find Requisition Lines


FindClear

ItemStatus

1 EntersearchCriteria and click Find

Item, Rev

Category

Description

Approved

Buyer

Yes

Stock, Ms. Pat


Use the Find Requisition Lines window to search for requisition lines based on a variety of different criteria including:

• Approved • Requester • Requisition • Preparer • Buyer • Supplier • Supplier Site • Ship-To • Item • Description




You can find unapproved requisition lines by setting Approved to No. However, you will only be able to create RFQs from unapproved requisition lines.




Select Document Creation Criteria

Select Document Creation Criteria

AutomaticManual

Requisition Line Item Category Description UOM Qty| 422 | 1 | CM22 | PROD9 | MAIN PART | EA | 15 || 437 | 1 | CM22 | PROD9 | MAIN PART | EA | 85 |

ActionDocument TypeGrouping

2 Select document creation criteria

Selecting Document Creation Criteria

Action Choose one of the following document actions:

• Create - Create a new purchase document • Add To - Add to an existing purchase document

Document Type Choose from the following document types:

• Standard PO • Blanket Release • Planned PO • RFQ

Grouping Choose one of the following grouping options:

• Default - requisition lines for the same item, revision, line type, unit of measure, and transaction reason are combined into individual purchase order lines.




• Requisition - the autocreated documents parallel the structure of the requisition from which they were created. If you select multiple requisition lines from the same requisition, they will not be grouped (even if the lines are exactly the same) and will create multiple lines on the resulting purchase document. For example 5 requisition lines will create 5 lines on the resulting purchase document. When using requisition grouping, you can select lines from one requisition only and you cannot use manual creation mode.




Select Requisition Lines


AutomaticManual

Requisition Line Item Category Description UOM Qty

| 422 | 1 | CM22 | PROD9 | MAIN PART | EA | 15 || 437 | 1 | CM22 | PROD9 | MAIN PART | EA | 85 |

Action: CreateDocument Type: Standard POGrouping: Default

3 Select requisition lines


Requisition lines are ordered by item, item category and then need-by date.




Select Automatic Creation Mode

Select Automatic Creation Mode

AutomaticManual



4 Click Automatic




Autocreate New Document Window


AutomaticManual



CancelCreate

Document

Supplier Supplier Site

Currency Source: DefaultFirst Requisition LineSpecify


You can accept the default values in this window or make changes if appropriate. After selecting the Create button, the PO: Display the AutoCreated Document profile option will determine if Purchasing opens the appropriate transaction window (Purchase Orders window or RFQs window) and displays the created line(s). The supplier and supplier site are not required fields in this window. However, if AutoCreate creates the document without a supplier and supplier site, they must be added to the purchase document before it can be approved.




Manual Creation Mode


1. Find requisitions2. Select document creation criteria3. Click Manual to open the Document Builder4. Manually combine the requisition lines to build the

document line by line

Manualcreation


Manual creation mode lets you take control of the actual placement of requisition lines on purchase order lines. You move each line into the position you want it on the document by using the Document Builder. You can combine like requisition lines onto a single document line. If you want to combine two requisition lines for the same item, one with a predefined item and one with a one-time item (a line with a category and description), use Modify on the Tools menu to change the one-time item line to the predefined item. Use manual creation mode when:

• You want to manually choose the requisition lines to combine onto a single document line.

• You want to specify the location of the items on the document (for example, specify which purchase order lines the requisition lines will become).

• You want to ensure you get the negotiated price when combining multiple requisition lines with different prices.




Add to Existing Document


• Select the Action type– Select Add To for additional lines on an existing

document• Select the requisition lines to add• Select creation mode

– Automatic to simply add the selected lines– Manual to add the lines as you wish

• Specify the existing document number to add to


You can add lines to existing documents only if your security criteria allow you to modify them.




Modify Requisition Lines


• Highlight requisition line to be modified• Navigate to Modify Lines window• Split existing requisition lines

– To be autocreated for different suppliers– To be autocreated as different items


Use the Modify feature when you want to split an existing requisition line into multiple requisition lines that represent the same or different items. For example, if the requisition line quantity is so large that a single supplier cannot fill the entire order by the need-by date, you can split the requisition line and assign the split lines to different purchase documents written to different suppliers. In an additional example, if you have a requisition line item that contains parts that you want to order as unique items, you can split the requisition line into several lines. Enter as many new lines as you need to represent the original requisition line. For each newly created line, Purchasing automatically creates distribution lines and prorates quantities for the new distributions based on the original requisition line distributions. When you return to the AutoCreate Documents window, Purchasing displays the new requisition lines that are now available for placement on a purchase order or RFQ if they meet your original search criteria. The original requisition line is no longer available for purchase order or RFQ placement, but your requester can easily review the modification status of a requisition line in the Requisitions Summary window.




Return Requisition Lines


• Highlight requisition line to be returned• Navigate to Return Requisitions window• Return requisition line to requestor with reason for

return. For example:– Goods or services no longer available– Price increase requires requisition reapproval

• Remaining lines on requisition are automatically returned to requestor


Purchasing lets you return a requisition line to the requisition preparer. You might want to return a requisition line if you are unable to obtain the requestor’s price and want the requestor to resubmit the requisition for approval at a higher price. From the Tools menu, select Return Requisitions to display the Return Requisitions window. Enter a reason for the return and select OK to return all requisition lines on the current requisition except any lines from the requisition already placed on a purchase order. When you return requisition lines, they are no longer available in the requisition pool. Once a requisition submitted in Purchasing has been approved, the requisition must be returned for the original submitter to make changes to it. If the requisition was submitted using iProcurement, the requestor can use the Withdraw feature to make changes and re-submit the requisition. The Withdraw feature is not available in Purchasing and can only be used in iProcurement if no lines on the requisition are associated with purchase documents. The Send Notifications for Purchasing Documents program will distribute notifications for returned requisitions. This program should be scheduled to run periodically.




Guided Demonstration - Return a Requisition (Required)

Responsibility: System Administrator

(N) Profile > System

Return a requisition to the sender. Find the purchase requisition you created and return it to the requester; note a reason for returning the requisition.

Prevent Buyer Override in AutoCreate Window

1. Responsibility = System Administrator

2. Navigate to the System Profiles window

3. (N) Profile > System

4. Responsibility = Checked

5. Responsibility = XXPurchasing, Vision Operations

6. Profile = PO: Allow Buyer Override in Autocreate Find

Profile Site Application Responsibility User

PO: Allow Buyer Override in Autocreate Find Yes No

7. (B) Find

Return a Requisition

8. Responsibility = XXPurchasing, Vision Operations

9. Open the Find Requisition Lines window:

10. (N) AutoCreate

11. Requisition = Your purchase requisition created using the supplier item catalog

12. (B) Find to open the AutoCreate Documents window.

13. Open the Return Requisitions window:

14. (M) Tools > Return Requisition




15. In the Reason field, enter a reason for returning the requisition.

Note: The return reason can be viewed in the Action History window.

16. (B) OK

Note: This action returns ALL requisition lines associated with this requisition unless they have been placed on a purchase document.

ReApprove your requisition

17. Open the requisitions window.

18. (N) Requisitions > Requisition Summary

19. Enter your requisition number in the Requisition Number field.

20. (B) Find

21. Note the approval status.

22. (M) View > Action History

23. Close the Action History window

24. (B) Open

25. (B) Approve



28. (B) OK





Guided Demonstration - AutoCreate a Purchase Order (Required)


(N) AutoCreate

Autocreate a Standard Purchase Order

1. Enter the number of your purchase requisition in the Requisition field.


3. Action = Create

4. Document Type = Standard PO

5. Grouping = Default

6. (M) Edit > Select All to select all lines

7. (B) Automatic


9. (B) Create

10. Record the purchase order number.


12. Save the purchase order but don’t approve it.








Practice - Return a Requisition

Overview

In this practice, you will use the AutoCreate form to return a requisition.

Assumptions



Tasks


Create an Expense Item

Create an expense item that will be purchased by the M1-Seattle Manufacturing inventory organization. Set t he item attributes based on the following information.

1. Navigate to the Master Items window − Item = XXSoftware − Description = Expensed Item − Purchased = Checked − Purchasable = Checked − Default Buyer = Stock, Ms. Pat − Use Approved Supplier = Unchecked − List Price = 450 − Expense Account = 01-510-7530-0000-000

Enable the Item in an Inventory Organization

2. Enable the item in the M1-Seattle Manufacturing inventory organization.

Create an Inventory Item

3. Create an inventory item that will be purchased by the M1-Seattle Manufacturing inventory organization. Set t he item attributes based on the following information.

− Item = XXMonitor − Description = Inventory Item − Purchased = Checked




− Purchasable = Checked − Use Approved Supplier = Unchecked − Default Buyer = Stock, Ms. Pat − List Price = 250 − Inventory Item = Checked


4. Enable the item in the M1-Seattle Manufacturing inventory organization.

Requisition your Expensed Item

5. Add your expensed item to a requisition.

6. Navigate to the Requisitions window − Description = XXPurchases − Item = XXSoftware − Quantity = 10 − Need-by = Today’s Date − Destination Type = Expense − Organization = Vision Operations − Location = V1- New York City − Supplier = Blank − Site = Blank

Requisition your Inventory Item

7. Add your inventory item to a requisition − Item field on line 2 = XXMonitor − Quantity = 5 − Need-by = Today’s Date − Destination Type = Inventory − Organization = Seattle Manufacturing − Location = M1 – Seattle − Supplier = Blank − Site = Blank

Approve the Requisition

8. Submit your requisition for approval

Return your Requisition

9. Use the AutoCreate form to query your requisition and return it. Supply a return reason.

ReApprove your Requisition




10. Find your requisition using the Requisition Summary window

11. View the Return Reason in the Action History window

12. Resubmit your requisition for approval.




Solution - Return a Requisition



1. Choose the organization

2. (N) Change Organization

3. From the list of values, choose M1-Seattle Manufacturing and click OK

4. Open the Master Item window:

• (N) Items > Master Items − Item = XXSoftware − Description = Expensed Item

5. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Default Buyer = Stock, Ms. Pat − Use Approved Supplier = Unchecked − List Price = 450 − Expense Account = 01-510-7530-0000-000

6. Save





7. (M) Tools > Organization Assignment

8. Assign the item to the following inventory organizations: − M1 - Seattle Manufacturing

9. Save





10. Open the Master Item window:

• (N) Items > Master Items − Item = XXMonitor − Description = Inventory Item

11. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Default Buyer = Stock, Ms. Pat − List Price = 250

12. (T) Inventory − Inventory Item = Checked

13. Save






15. Assign the item to the following inventory organizations: − M1 - Seattle Manufacturing

16. Save

17. Close the Organization Assignment and the Master Item windows




Requisition your Expensed Item

18. Open the Requisitions window:

• (N) Requisitions > Requisitions − Description = XXPurchases

19. (T) Items − Item = XXSoftware − Quantity = 10 − Need-by = Today’s Date − Destination Type = Expense − Organization = Vision Operations − Location = V1- New York City − Supplier = Blank − Site = Blank

20. Save

Requisition your Inventory Item

21. (T) Items

22. (M) File > New − Item field on line 2 = XXMonitor − Quantity = 5




− Need-by = Today’s Date − Destination Type = Inventory − Organization = Seattle Manufacturing − Location = M1 – Seattle

23. Save

24. Record your requisition number

Approve the Requisition


26. OK

27. Close the Requisitions window.

Return your Requisition

28. Open the Find Requisition Lines window:




29. (N) AutoCreate

30. (B) Clear to clear existing query criteria. − Requisition = Your purchase requisition


32. Open the Return Requisitions window




33. (M) Tools > Return Requisition.

34. In the Reason field, enter a reason for returning the requisition.

Note: The return reason can be viewed in the Action History window.

35. (B) OK

Note: This action returns ALL requisition lines associated with this requisition unless they have been placed on a purchase document.

ReApprove your Requisition

36. Open the requisitions window

• (N) Requisitions > Requisition Summary

37. Enter your requisition number in the Requisition Number field

38. (B) Find

39. Note the approval status.

40. (M) View > Action History




41. Close the Action History window

42. (B) Open

43. (B) Approve − Submit for Approval = Checked − Uncheck all other options

44. (B) OK





Practice - AutoCreate a Purchase Order

Overview

In this practice, you will use the AutoCreate form to return a requisition.

Assumptions



Tasks



1. Use the AutoCreate window to find the requisition you returned in the last practice. Use automatic creation mode to create a standard purchase order.

− Supplier = Advanced Network Devices − Site = SANTA CLARA




Solution - AutoCreate a Purchase Order



1. Open the AutoCreate Documents window:

• (N) AutoCreate

2. (B) Clear

3. Enter the number of your purchase requisition in the Requisition field.


− Action = Create − Document Type = Standard PO − Grouping = Default

5. (M) Edit > Select All to select all lines

6. (B) Automatic to create a standard purchase order.




− Supplier = Advanced Network Devices

7. (B) Create

8. Record the purchase order number.





10. Save




Summary

Summary

You should now be able to do the following:• Use the AutoCreate window to automate the

creation of purchase documents• Use the Create Releases program to generate

blanket purchase agreement releases• Understand how the PO Create Documents

workflow can automatically create purchase documents without buyer intervention




Receiving Chapter 9 - Page 1

Receiving Chapter 9




Receiving

Receiving





Procure to Pay LifecycleRequisitions

Purchase Orders

Receiving

Reporting

Invoice/ Payment


Supplier management

RFQs/ Quotations

Catalog Content

Management

Sourcing

Ordering

Analysis




Objectives

Objectives

After completing this module, you should be able to do the following:• Describe the process of receiving goods• Understand receipt routing• Understand receipt processing methods• Create Standard, Express, and Cascade receipts• Understand Substitute receipts, Unordered

Receipts, Returns and Corrections• Understand Pay on Receipt• Identify key reports• Understand setup options• Understand additional implementation

considerations




Agenda

Agenda

• Understand the Receiving process• Understand receipt routing• Understand receipt processing methods• Understand Substitute receipts, Unordered

Receipts, Returns and Corrections and Pay on Receipt

• Identify key standard reports• Understand setup options• Understanding additional implementation

considerations




Receiving

Receiving

Inventory

Order Entry

Internal shipment Inspect

Transfer

Shop floor

Inventory

Supplier

Shipment

Expense

Receive Deliver

Receiving

Receiving is a transaction that signals that the goods ordered on a purchase order have arrived. Purchasing lets you control the items you order through receiving, inspections, transfer and delivery. You can:

• Define receiving tolerances and rules at the organization supplier, item and order level, with the lowest level overriding previous levels.

• Use Express Receipt to receive an entire purchase order with a few keystrokes. • Use the Cascade function to distribute a given quantity of an item from a single supplier

across multiple shipments and distributions. • Record receipt of unordered items, research receipt and match the delivery to an existing

purchase order. • Record delivery of items from receiving or inspection locations to their final destination

and also record transfers of items to different locations for inspection. • Define which of your items require inspection. You can accept or reject items and

provide detailed information about your inspection results. • Record returns to suppliers and customers.




• Correct receiving transaction errors. • Review transaction history.




Overview of Receiving Locations


Ship-to location Receiving locations DestinationReceiving dock Areceives 20 items

Cold storage A20 items

Inspection station 120 items

Factory 1 receives10 items

Locator 110 items

Paulrequester10 items

Cold Sub A


You record inspections, deliveries and material movements within receiving and inspection by entering receiving transactions. The transactions provide a history that allows you to track an item from its source to its destination. Receiving Transactions allow you to:

• Transfer goods from one location to another • Document inspection results • Deliver goods to their required destination

It is the destination type that tells the system if the material is in the receiving space or its final destination.




Agenda

Agenda




considerations




Overview of Receipt Routing


Inspection

Standard Receipt

• Two Steps

• Goods are received and then delivered in two transactions.

• Three Steps

• Goods are received and then sent to Inspection.

• Goods are accepted or rejected.

• Third step either returns or delivered.

Direct Receipt

• One Step

• “Dock to Stock”


Direct Receipt One step. Goods are received and delivered in one step. Standard Receipt Two steps. Goods are received in one step and then delivered in a second. This allows for the time it takes goods to move though your facility from the receiving dock. Quantity on hand in subinventories is not updated until the delivery is completed. The quantity and cost is maintained in the inventory organizations inventory receiving account until the delivery is made. Inspection Required Three steps. Used for goods that require a more skilled person to do a careful review. Goods are received in one step. Inspection either accepts or rejects the goods. A quality score can be assigned at that time. Goods that are accepted are delivered in the third step, while goods that are rejected are returned to the supplier.




Direct Delivery

Direct Delivery

Receive and Deliver

1

Shop floorInventory Expense

Direct Delivery

Direct delivery allows receipt of items directly to their final delivery destination. This is sometimes called a “dock to stock” transaction. The final destination type may be Expense, Inventory, or Shop Floor.




Standard Receipt

Standard Receipt

1

2

Optional


Receive

Deliver

Standard Receipt

Shipments are received into a receiving location and then delivered to an interim or final destination. Goods are usually received and delivered in separate transactions. However, if the RCV: Allow Routing Override profile option is set to Yes, users can override the default and immediately deliver to the final destination. Setting the RCV: Allow Routing Override profile to No forces a two step delivery process.




Inspection Required

Inspection Required


Receive1

Deliver3

Req’d Inspect2

Inspection Required

Inspection is a procedure you perform to ensure that items received confirm to your quality standards. Goods must be received and inspected before they can be delivered to their final destination. The QA: PO Inspection Profile option can be set to either Purchasing or Quality. If the profile option is set to Purchasing, a simple inspection window opens for recording inspection results. If the profile option is set to Quality and a quality inspection plan exists, the Quality form is opened and inspection results may be recorded based on a predefined inspection plan.




Agenda

Agenda




considerations




Receipt Processing Methods


• Standard receipt• Express receipt• Cascade receipt• ASNs or ASBNs - iSupplier Portal• ASNs or ASBNs - e-Commerce Gateway• Receiving in iProcurement• Receiving open interface• Receiving notification


Standard receipt One line at a time. Express receipt Multiple lines at a time. For example, an entire purchase order for a supplier. During express receiving you can always deselect items and change quantities prior to completing the process. Cascade receipt One receipt of multiple shipments of the same item. For example, same supplier and same item represented on multiple purchase documents. ASNs or ASBNs - iSupplier Portal You can give your supplier carefully limited access to allow them to enter ASNs or ASBNs. ASNs or ASBNs - e-Commerce Gateway Load ASNs or ASBNs using the e-Commerce Gateway. Receiving in iProcurement




You can give your employees limited ability to receive some types of items through a web browser. Receiving Open Interface Use barcoding software to scan receipts and create a text file that can be loaded into the Receiving Open Interface and processed by running the Receiving Transaction Processor. Receiving Notification The PO Confirm Receipts workflow can be scheduled to send notifications to requesters asking them to confirm receipts against expected receipts.




Standard Receipt

Standard Receipt

• Find expected receipts• Enter quantities for received items

Qty Item

10 CM13139

5 CM12458

5 DC21322




Express Receipt

Express Receipt

• Find expected receipts• (B) Express fully receives all expected shipments• Enter Final Destination (Inventory, Expense or

Shop Floor

Qty Item

10 CM13139

5 CM12458

5 DC21322

Express Receipt

The express function is a quick method of entering receipts and receiving transactions. This function is available if you have specified or inferred a source document. With a few keystrokes you can receive the entire open order quantity of a purchase order. When you search for expected receipts, either specify a single supplier or use search criteria that will derive a single supplier.




Cascade Receipt

Cascade Receipt

• Find expected receipts• (B) Cascade fully receives all expected shipments• Enter quantity to cascade

Qty Item

10 CM13139

2 CM13139

0 CM13139

Qty expected

10

5

5

Cascade qty = 12

Cascade Receipt

The cascade function facilitates the distribution of a given quantity of an item from a single supplier across multiple shipments and distributions. This function is available if you have specified or inferred a source (a specific supplier or customer) and an item when you search for expected receipts.




ASNs and ASBNs

ASNs and ASBNs

e-Commerce Gateway

iSupplier Portal

Openinterface

Receiving Transaction Processor

Confirm Receipts

Enter1

Process2

Confirm3

ASNs and ASBNs

Enter (1) Enter ASNs and ASBNs using either iSupplier Portal or e-Commerce Gateway. Process (2) Run the Receiving Transaction Manager to validate data in the Receiving Open Interface tables. Confirm (3) Use the Enter Receipts window to confirm the actual receipt of goods when it arrives.




Receiving in iProcurement


Receive1

Confirm2


Receive (1) You receive the actual goods. Confirm (2) You can confirm physical receipt of goods using iProcurement as well as the Enter Receipts form in Purchasing, provided you are using a receipt routing of Direct Delivery. You will not find expected receipts if the receipt routing is set to Standard Receipt or Inspection Required. You can schedule the Confirm Receipts Workflow Select Orders process to run at regular intervals. The Confirm Receipts Workflow Select Orders process runs the PO Confirm Receipts workflow. The Confirm Receipts workflow sends notifications through the Web, e-mail, or Notifications Summary window to requesters or buyers who create requisitions through Purchasing or iProcurement. It lets people know they should have received an item. The Confirm Receipts workflow sends notifications for items with a Destination or Deliver-To Type of Expense, a Receipt Routing of of Direct Delivery, and a Need-By date that is equal to or later than today’s date.




Receiving Open Interface


Flat File

Openinterface

Receiving Transaction Processor

Confirm Receipts

Load1

Process2

Confirm3


Load (1) Load the Receiving Open Interface with data using SQL*Loader or another utility. You can use barcoding software to create the text file as items are scanned to help automate the receiving process. Process (2) Run the Receiving Transaction Manager to validate data in the Receiving Open Interface tables. Confirm (3) Use the Enter Receipts window to confirm the actual receipt of goods when it arrives.




Finding Expected Receipts


Find expected receipts2

4 Chose processing method

3 Input receipt header

5 Input receipt details

6 Save

Choose the organization1


Purchasing Responsibility (N) Receiving > Receipts Choose the organization (1) When you first access the Receipts window, you will be forced to choose an inventory organization from the list of values if you can process receipts for more than one. You can change the organization manually if you have access to the Change Organization window. Although it is not always the case, you can think of an inventory organization as a warehouse. When you write purchase orders, for example, you specify goods to be shipped to specific inventory organizations. You will only be able to view expected receipts (scheduled shipments for a purchase order line item) for the inventory organization you choose. Use the Organization Access form to limit access to the list of inventory organizations for a specific responsibility. Find expected receipts (2) Expected Receipts can and do come from different sources because they are based on source documents like purchase order scheduled shipments to suppliers, Internal Sales Orders resulting from Internal requisitions and customer returns (processed in Order Management).




When no source document can be found, the order can be processed as an Unordered receipt provided the Allow Unordered Receipts Receiving option is enabled on the scheduled shipment. Use the Find Expected Receipts window to find source documents. You can enter as many criteria as desired to search for expected receipts. The more information you include, the more restrictive the search is. The focus of this course is those receipts that are expected for a supplier as a result of a purchase order or release that was issued. Other sources of goods to be received are from either internal inventory organizations, or from customers. Input receipt header (3) Input receipt header details like freight carrier, comments and packing slip. Choose processing mode (4) Choose the most efficient method to process the invoice. Choose to process the receipt as a standard, express or cascade receipt. Input receipt details (5) Input receipt details like quantity, unit of measure, location and subinventory (if necessary). The method of receipt routing determines if the destination defaults to Receiving or a final destination like Inventory, Expense or Shop Floor. You can override this option (for example, when using Standard Delivery, the destination will default to Receiving but you override it to a final destination) only if the RCV: Allow Routing Override profile option is set to Yes. Also the Enforce Ship-To Receiving option determines whether the receiving location must be the same as the Ship-To location. The Enforce Ship-To option can be set to allow the receipt, allow the receipt but warn the receipt processor or not allow the receipt to be processed. Save (6) Save the receipt. Depending on the setting of the RCV: Processing Mode profile option, the receipt will be processed immediately or submitted as a batch or deferred process.




Receipt Header

Receipt Header

• Receipt Number• Receiver Name• Date• Freight Carrier• Packing Slip/Air Bill• Number or Containers• Comments

HEADER

LINE

Receipt

Receipt Header

Receipt Number Enter a unique receipt number. If automatic receipt number generation is active, the system will assign the next available receipt number. Numbering options are set one time for each inventory organization. You can also add receiving transactions existing receipts. Receiver Name The receiver name will default in from the user id. You can override the default with the name of another receiver. Date Today’s date will default in from the system date. You can backdate a receipt if necessary, but the accounting period that the receipt date fall into must be open to do so. Freight Carrier You may enter the carrier who delivered the goods using the list of values. This information will default if an ASN was sent. Packing Slip / Air Bill Number




You may enter the packing slip or air bill number that the goods came in on. This information will default if an ASN was sent. Number of Containers You may enter the total number of containers that made up this shipment. Comments The receiver may enter any comments here. An example might be that the box was wet, etc.




Receipt Line

Receipt Line

• Quantity• Unit of Measure• Item• Description• Destination Type• Order Number• Receipt Type• Requestor• Subinventory• Note to Receiver

HEADER

LINE

Receipt

Receipt Line

Quantity Enter the quantity actually received. If you have allowed blind receiving in the inventory organization’s receiving options, this field will be empty. Unit of Measure The unit of measure for the receipt will default here. Item The system item number (if one exists) will display here. Description The description for the item will display here. Destination Type The final destination of the receipt (Expense, Inventory or Shop Floor) or Receiving is displayed. For a direct receipt the destination will be either: inventory, expense or outside processing. A standard or inspection receipt will have a destination type of receiving. Order Number




The order number will default (purchase order number or sales order number). Receipt Type The receipt type for this order will default here. Either direct, standard or inspection. Requestor If the destination type is expense or inventory, and the order was created from a purchase requisition, the name of the requestor will default. Subinventory If the destination type is inventory this field is required. If the sub inventory was specified on the requisition or purchase order, it will default here. If no value defaults, the receiver will have to fill in which subinventory the goods are to be delivered to. Note to Receiver If a note to the receiver was entered either on the requisition or the purchase order, it will display here.




Guided Demonstration - Create a Standard Purchase Order (Required)



Create a purchase order that will be used for receiving.



2. Type = Standard Purchase Order

3. Ship-to = M1-Seattle

4. Bill-to = V1-New York

5. Description = XXComputer Equipment



7. (B) Terms

8. Payment = Immediate

9. Pay On = Blank

10. Save

11. Close the Terms and Conditions window

12. (T) Items


Num Item Quantity Price Promised



3 XXComputerPC 2 1200 Today + 7 days




Note: Need-by and Promised-by are only required for planned items. However, they are necessary for some of the supplier performance reports.

14. Save

Enter Shipments

15. Place cursor in the Description field for the XXSoftware item

16. (B) Shipments

17. Enter the following shipments for the XXSoftware item.





18. Save

19. (T) More

20. Match Approval Level = 2-way

21. Invoice Match Option = PO

22. Save


24. Place cursor in the Description field for the XXMonitor item.

25. Navigate to the Shipments window:

26. (B) Shipments









28. Save

29. (T) More

30. Match Approval Level = 3-way

31. Invoice Match Option = PO

32. Save




35. Click in the Description field for the XXSoftware item.

36. (B) Shipments




1 Expense Smith, Mr. Jonathon 4 01-520-7530-0000-000

39. Save


41. Repeat the steps above until ALL shipments have a completed internal distribution.

42. Save



44. (B) Shipments








Note: The type of the item is Inventory. For Inventory items, the charge account cannot be changed. Account generator builds it based on the accounting in the inventory organization! If the account combinations are not being built the way you need them to be, you can modify the workflows to build them the way you need them to be built.

47. Save



50. Save


Complete the Internal Distributions for the Asset

52. Place cursor in the Description field for the XXComputerPC item.

53. (B) Shipments







57. (B) Approve










63. Verify that each distribution for XXMonitor has requestor and subinventory information recorded





Guided Demonstration - Create a Standard Receipt (Required)


(N) Receiving > Receipts (M1 - Seattle Manufacturing)

Find Expected Receipts

1. Purchase Order = Your Purchase Order from #1.


3. Item = XXComputerPC

4. (B) Find

Fill in Receipt Header Details

5. Packing Slip = PS-XX

6. Freight Carrier = UPS

Note: The Receipt Header window opens on top of the Receipts window. When you have completed the Receipt Header window, click in the Receipt window, which is located behind the Receipt Header window to navigate to it.

Process a Standard Receipt

7. (M) Window > Receipts (M1)

8. Select the checkbox to the left of the Quantity field

9. Quantity = 2

10. Destination Type = Expense

11. Location = M1-Seattle

12. Requestor = Smith, Mr. Jonathan

13. Save

14. (B) Header

15. Record your receipt number.




Note: You can use iSupplier Portal to allow your suppliers to record ASNs. Deliveries must still be processed using this window, but much of the information will already be recorded and as a result, receipt processing cost and time may be lower.

Note: You can only override the default destination type if the RCV: Allow Routing Override is set to Yes. Also, the Enforce Ship-To option will determine if you can override the Ship-To location on the expected receipt. You can set this Action for this option to Warning, Reject or None. Set the RCV: Print Receipt Traveler to Yes in order to have a Receipt Traveller printed automatically. The RCV: Processing Mode profile option determines how receipts are processed:

Setting Meaning

Online The user will not be able to perform any other application activities until the process completes.

Immediate The window will start running Receiving Transaction Processor as a background process. The system will not hold the screen and the user can do something else..

Batch Control is returned to the User immediately so other application activities may be performed. Running Concurrent Program Receiving Transaction Processor (RVCTP) will process the transaction. Typically, you will run this program periodically based on processing and system requirements.




Guided Demonstration - Create an Express Receipt (Required)






3. Item = XXSoftware

4. (B) Find

Note: In order to process an express receipt, all expected receipts queried must be from the same supplier!

Record Receipt Header Details




Create the Express Receipt


8. (B) Express

9. Destination Type = Final Destination

10. (B) OK

11. Save

12. (B) Header


Note: If the Destination Type is Final Destination, to process the receipt as an express receipt, the requestor field must have been filled out on the purchase order or release!




Review Receiving Transactions

14. Open the Find Receiving Transactions window:

15. (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)

16. In the Receipt field, enter the receipt number.

17. (B) Find

18. (B) Transactions to open the Receipt Transaction Summary window.

19. Review your receipt.




Guided Demonstration - Create a Cascade Receipt (Required)






3. Item = XXMonitor

4. (B) Find

Note: In order to process a cascade receipt, you must query expected receipts for a specific supplier and item.

Record Receipt Header Details




Create the Cascade Receipt


8. (B) Cascade to create a Cascade receipt.

9. Cascade Quantity = 6

10. Unit of Measure = Each

11. (B) OK

12. Note that the 6 items are applied to the expected receipt.

13. Save

14. (B) Header





Note: Because the routing type was Standard Routing, these inventory items will show a destination type of Receiving. The items are delivered to inventory in a subsequent step.

Complete the Delivery for a Line of the Cascade Receipt (we will inspect the other later)

16. Open the Receiving Transactions window:

17. (N) Receiving > Receiving Transactions (M1 - Seattle Manufacturing)

18. In the Receipt field, enter the number of the Cascade Receipt.

19. (B) Find

20. (T) Order Information

21. Select PO Line 2, Shipment 2 (quantity of 2 available to deliver) by selecting the checkbox to the left of the Quantity field. We will inspect the other item in a later lab.

Note: If you did not fill in requestor and subinventory information on the purchase order, you will need to do that now!

22. Save

23. Close the Receiving Transactions window.





27. (B) Find






Practice - Create Items

Overview

In this practice you will create items that you will write a purchase order for and finally receive in subsequent practices.

Assumptions



Tasks


1. Log on to the system using the following information. − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations


2. Create an item that will be expensed. Use the following information:

3. Open the Master Item window − Item = XXSoftware − Description = Expensed Item − Primary Unit of Measure = Each − Item Status field = Active − Purchased = Checked − Purchasable = Checked − Buyer = Stock, Ms. Pat − List Price = 450 − Expense Account = 01-510-7530-0000-000

4. In the Receipt Date Control area’s Action field, use the list of values to select Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing = Standard − Enforce Ship-To = Warning





Assign the item to the following inventory organizations:

Org Name Assigned

M1 Seattle Manufacturing Checked

M2 Boston Manufacturing Checked

M3 Dallas Manufacturing Checked

Create an Inventory Item − Item = XXMonitor − Description = Inventory Item − Primary Unit of Measure = Each − Item Status = Active − Inventory Item = Checked − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Buyer = Stock, Ms. Pat − List Price = 250

5. In the Receipt Date Controls area’s Action field, use the list of values to select Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing field = Standard



Org Name Assigned




Create an Item that will be Capitalized and Depreciated after Purchase − Item = XXComputerPC




− Description = High Speed Computer − Primary Unit of Measure = Each − Item Status field = Active − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Default Buyer = Stock, Ms. Pat − List Price = 1200 − Asset Category = COMPUTER-PC

In the Receipt Date Control area’s Action field, use the list of values to select Warning. − Days Early and Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing = Inspection



Org Name Assigned







Solution - Create Items



1. Choose the organization:

2. (N) Change Organization

3. From the list of values, choose M1-Seattle Manufacturing and click OK

4. (N) Items > Master Items − Item = XXSoftware − Description = Expensed Item − Primary Unit of Measure = Each − Item Status field = Active

5. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Buyer = Stock, Ms. Pat − Use Approved Supplier = Unchecked − List Price = 450 − Expense Account = 01-510-7530-0000-000

6. Save




7. (T) Receiving

8. In the Receipt Date Control area’s Action field, use the list of values to select Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing = Standard − Enforce Ship-To = Warning

9. Save






11. Assign the item to the following inventory organizations:

Org Name Assigned




12. Save

13. Close the Organization Assignment and Master Item windows.


14. (N) Items > Master Items − Item = XXMonitor − Description = Inventory Item




15. (T) Main − Primary Unit of Measure = Each − Item Status = Active

16. (T) Inventory − Inventory Item = Checked

17. Save

18. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Buyer = Stock, Ms. Pat − List Price = 250

19. Save




20. (T) Receiving

21. In the Receipt Date Controls area’s Action field, use the list of values to select Warning. − Days Early = 5 − Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing field = Standard

22. Save







Org Name Assigned




24. Save

25. Close the Organization Assignment and the Master Item windows.

Create an Item that will be Capitalized and Depreciated after Purchase

26. (N) Items > Master Items − Item = XXComputerPC − Description = High Speed Computer − Primary Unit of Measure = Each




− Item Status field = Active

27. (T) Purchasing − Purchased = Checked − Purchasable = Checked − Use Approved Supplier = Unchecked − Default Buyer = Stock, Ms. Pat − List Price = 1200 − Asset Category = COMPUTER-PC

28. Save

29. (T) Receiving

30. In the Receipt Date Control area’s Action field, use the list of values to select Warning. − Days Early and Days Late = 5 − Allow Substitute Receipts = Yes − Receipt Routing = Inspection

31. Save


Enable the item in the following inventory organizations:




Org Name Assigned







Practice - Create a Standard Purchase Order

Overview

In this practice you will use the items you set up to create a standard purchase order.

Assumptions



Tasks




2. Open the Purchase Orders window − Type = Standard Purchase Order − Supplier = Advanced Network Devices − Site = SANTA CLARA − Description = XXComputer Hardware

Enter Terms and Conditions − Payment = Immediate − Pay On = Blank

Enter Items









Enter Shipments






− Match Approval Level = 2-way − Invoice Match Option = PO






− Match Approval Level = 3-way − Invoice Match Option = PO














Note: The type of the item is Inventory. For Inventory items, the charge account cannot be changed. Account generator builds it based on the accounts in the inventory organization! If the accounts are not being built the way you need them to be, you can modify the account generator to build them the way you need them to be built.









Solution - Create a Standard Purchase Order




2. Open the Purchase Orders window:

• (N) Purchase Orders > Purchase Orders − Type = Standard Purchase Order − Supplier = Advanced Network Devices − Site = SANTA CLARA − Ship-to = M1-Seattle − Bill-to = V1-New York − Description = XXComputer Hardware



• (B) Terms − Payment = Immediate − Pay On = Blank

4. Save

5. Close the Terms and Conditions window to return to the Purchase Orders window.

Enter Items

6. (T) Items









Note: Need-by and Promised-by are only required for planned items. However, they are necessary for some of the supplier performance reports.

8. Save

Enter Shipments

9. Place cursor in the Description field for the XXSoftware item


• (B) Shipments









12. Save

13. (T) More − Match Approval Level = 2-way − Invoice Match Option = PO

14. Save







• (B) Shipments






19. Save

20. (T) More − Match Approval Level = 3-way − Invoice Match Option = PO

21. Save







24. Click in the Description field for the XXSoftware item.

25. (B) Shipments





28. Save



31. Save






33. (B) Shipments





Note: The type of the item is Inventory. For Inventory items, the charge account cannot be changed. Account generator builds it based on the accounts in the inventory organization! If the accounts are not being built the way you need them to be, you can modify the account generator to build them the way you need them to be built.

36. Save



39. Save




42. (B) Approve − Submit for Approval = Checked − Uncheck all other options





46. Verify that each distribution for XXMonitor has requestor and subinventory information recorded








Practice - Create a Standard Receipt

Overview

In this practice you will create a standard receipt against the purchase order you created in the prior practice.

Assumptions



Tasks


Log on to the system using the following information. − User Name = operations − Password = welcome − Responsibility = Purchasing, Vision Operations


Open the Find Expected Receipts window: − Purchase Order = Your Purchase Order from Lab #1. − Supplier = Advanced Network Devices − Item = XXComputerPC

Fill in Receipt Header Details − Packing Slip = PS-XX − Freight Carrier = UPS


Process a Standard Receipt − Quantity = 2 − Destination Type = Expense − Location = M1-Seattle − Requestor = Smith, Mr. Jonathan





Note: You can use iSupplier Portal to allow your suppliers to record ASNs. Deliveries must still be processed using this window, but much of the information will already be recorded and as a result, receipt processing cost and time will be lower.

Note: You can only override the default destination type if the RCV: Allow Routing Override is set to Yes.

Note: The RCV: Processing Mode profile option determines how receipts are processed:

Setting Meaning



Batch Control is returned to the User immediately so other application activities may be performed. The transaction will be processed by running Concurrent Program Receiving Transaction Processor (RVCTP). Typically, customers will run this program periodically based on their processing and system requirements.




Solution - Create a Standard Receipt




2. Open the Find Expected Receipts window:

• (N) Receiving > Receipts (M1 - Seattle Manufacturing) − Purchase Order = Your Purchase Order from Lab #1. − Supplier = Advanced Network Devices − Item = XXComputerPC

3. (B) Find

Fill in Receipt Header Details − Packing Slip = PS-XX − Freight Carrier = UPS


Process a Standard Receipt


5. Select the checkbox to the left of the Quantity field − Quantity = 2 − Destination Type = Expense − Location = M1-Seattle − Requestor = Smith, Mr. Jonathan

6. Save




7. (B) Header


Note: You can only override the default destination type if the RCV: Allow Routing Override is set to Yes.

Note: You can use iSupplier Portal to allow your suppliers to record ASNs. Deliveries must still be processed using this window, but much of the information will already be recorded and as a result, receipt processing cost and time will be lower.

Note: The RCV: Processing Mode profile option determines how receipts are processed:

Setting Meaning



Batch Control is returned to the User immediately so other application activities may be performed. The transaction will be processed by running Concurrent Program Receiving Transaction Processor (RVCTP). Typically, customers will run this program periodically based on their processing and system requirements.




Practice - Create an Express Receipt

Overview

In this practice you will create an express receipt against the purchase order you created

Assumptions



Tasks




2. Open the Find Expected Receipts window: − Purchase Order = Your Purchase Order from Lab #1 − Supplier = Advanced Network Devices − Item = XXSoftware


Record Receipt Header Details − Packing Slip = PS-XX − Freight Carrier = UPS


Create the Express Receipt − Destination Type = Final Destination












Solution - Create an Express Receipt




2. (N) Receiving > Receipts (M1 - Seattle Manufacturing) − Purchase Order = Your Purchase Order from Lab #1 − Supplier = Advanced Network Devices − Item = XXSoftware

3. (B) Find




Create the Express Receipt


5. (B) Express to create an Express receipt. − Destination Type = Final Destination

6. (B) OK




7. Save

8. (B) Header







13. (B) Find






Practice - Create a Cascade Receipt

Overview

In this practice you will create an cascade receipt against the purchase order you created.

Assumptions



Tasks




2. Open the Find Expected Receipts window: − Purchase Order = Your Purchase Order from Lab #1. − Supplier = Advanced Network Devices − Item = XXMonitor




Create the Cascade Receipt − Cascade Quantity = 6 − Unit of Measure = Each





Complete the Delivery for the a Line of the Cascade Receipt (we will inspect the other later)



5. Select PO Line 2, Shipment 2 (qty of 2 available to deliver) by selecting the checkbox to the left of the Quantity field. We will inspect the other item in a later lab.



6. Open the Find Receiving Transactions window.






Solution - Create a Cascade Receipt




2. Open the Find Expected Receipts window:

• (N) Receiving > Receipts (M1 - Seattle Manufacturing) − Purchase Order = Your Purchase Order from Lab #1. − Supplier = Advanced Network Devices − Item = XXMonitor

3. (B) Find




Create the Cascade Receipt


5. (B) Cascade to create a Cascade receipt. − Cascade Quantity = 6 − Unit of Measure = Each

6. (B) OK




7. Note that the 6 items are applied to the expected receipt.

8. Save

9. (B) Header



Complete the Delivery for the a Line of the Cascade Receipt (we will inspect the other later)


• (N) Receiving > Receiving Transactions (M1 - Seattle Manufacturing)


13. (B) Find





15. Select PO Line 2, Shipment 2 (qty of 2 available to deliver) by selecting the checkbox to the left of the Quantity field. We will inspect the other item in a later lab.


16. Save




• (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)


20. (B) Find






Control the Receiving Transaction Processor


• Online• Immediate• Batch


The setting of the RCV: Processing Mode profile determines the processing mode used after you save your work for receiving transactions. The profile option can have one of three possible settings: Online The Receiving Transaction Processor is called directly to process the receipt (no concurrent request is submitted). The form is not immediately returned to user control, so the user will not be able to perform any other application activities until the process completes. Form response time is the slowest of the three options, but errors processing the receipt become obvious immediately. Immediate The transaction goes to the interface table, and the Receiving Transaction Processor is called for the group of transactions that you entered since you last saved your work. The form will start running the Receiving Transaction Processor as a background process. Control is returned to the user immediately so other application activities may be performed. Form response time is fast, but a concurrent process is run each time you process a receipt. You must occasionally check the concurrent manager to ensure the concurrent request completes




without errors. If an error occurs, the problem must be fixed. You use the Transaction Status Summary form to delete errored transactions and force them to reprocess. This is important especially for transactions destined for Inventory or Shop Floor. Until the receipt processes successfully, no receipt accruals are generated and sent to the general ledger. If the problem is not reconciled by period end, accruals will be out of balance and understated in General Ledger. Batch The transaction goes to the interface table, where it will be picked up the next time the Receiving Transaction Processor runs. Control is returned to the user immediately so other application activities may be performed. Form response time is fast. The transaction will be processed by running the Receiving Transaction Processor process. This program must be scheduled to run periodically. The longer the interval, the more data the program will process each time it runs. Errors are handled the same way they are handled when the mode is set to Immediate. Typically, customers will run this program periodically based on their processing and system requirements. For example, you may elect to run the process at a time when there is relatively low database activity to help balance the load on system resources. Using this method, receipt accruals are not processed until the concurrent process completes successfully. Also, inventory value and on-hand quantities are not updated until the concurrent request completes.




Receiving Tolerances


• You can set receiving tolerances for quantities and for on-time delivery.

• You can determine what actions occur when the receipt is outside of the tolerance– None– Reject– Warning

• You can define receiving tolerances at the organization, item, and/or order level.


You can define days early and late that you will accept a shipment. You can also define what, if any percentage above the quantity ordered you will receive. You have three actions you can place to enforce those tolerances:

• None - no action is taken • Reject - The receiver is unable to receive the shipment. The buyer will have to either

adjust the tolerances on the PO, or change either the quantity and need by date on the PO. • Warning - The receiver will see a pop up window if a tolerance is exceeded. The

receiver has the option of accepting the shipment or turning the shipment away.




Control Numbers

Control Numbers

Purchasing uses three types of inventory control numbers:• Lot Numbers• Serial Numbers• Stock Locators

Control Numbers

Lot Numbers A lot number is a unique number assigned to a certain batch or process run of a product. You can assign expiration dates for each lot number. Lot number control is an item attribute that can be found and set by choosing the Inventory tab in either the Master Items or Organization Items windows. Serial Numbers A serial number is a unique number assigned to an individual item. When an item under serial number control is received, the user performing the transaction will be forced to enter a unique serial number for each item. Serial number control is an attribute on the inventory tab of the item (either in Master Items or Organization Items). Stock Locators You use locators to identify physical areas where you store inventory items. Item quantities can be tracked by locator. Items can also be restricted to specific locators. An example of a stock locator might be “Row, Rack, Bin” number. You can require Stock Locator control at the inventory organization level, the subinventory level, or the item level.




Agenda

Agenda




considerations




Substitute Receipts

Substitute Receipts

Receive item Binstead of A

Is B a validsubstitute?

NoReturn

Delivery

Yes

Substitute Receipts

When entering items in the Item Master, you have the ability to identify parts that can be substituted for each other. In Purchasing, you can receive predefined substitute items when you allow suppliers to ship alternatives to the item you order. Within the group of planning applications (MRP, DRP, ASCP), only ASCP can be set up to recognize substitute part numbers.




Unordered Receipts

Unordered Receipts

Unorderedreceipt

Delivery Match to

PO?

Yes

NoRequires matching

or return

Unordered Receipts

You can receive items from a supplier when you do not have or do not know a corresponding purchase order number. These items are tracked on the system while you wait for a buyer to specify which purchase order should be used, or if the items are to be returned to the supplier.




Overview of Returns and Corrections


Receiving Return delivery

RMA, reason code (optional)Return to supplier

Identify itemfor return

Receiving

Identify error in receiving

Correct as many transactions as necessary

Returns

Corrections


Returns You can return delivered items to receiving and return received or delivered externally sourced items to the supplier if the purchase order has neither been canceled nor finally closed. You can also return to the supplier unordered receipts that have not been matched. Optionally specify additional return information such as a Reason Code and RMA (Return Material Authorization) number. Corrections Purchasing provides the capability to correct any receiving transaction, except another correction and a return to a receiving transaction. Each transaction is done individually correcting the previous transactions until all applicable transactions are corrected.




Entering Returns

Entering Returns

Return from inventory

Return from receiving

To the supplier or customer

Entering Returns

Use the Receiving Returns window to enter returns against receipts, deliveries, transfers, acceptances, and rejections. You may enter an RMA number from your supplier, as well as specify any user defined return reason. You can return delivered items to a receiving location when they are routed to the wrong destination, require inspection, or require a return to a supplier or a customer in a later transaction. When you perform a Return to Supplier transaction, Purchasing reopens the associated purchase order for the return quantity by reducing the original receipt quantity. You cannot perform a Return to Supplier transaction against a Finally Closed or Cancelled purchase order. When you perform a Return to Supplier transaction, Purchasing automatically creates both a Return to Receiving and a Return to Supplier transaction.




Entering Corrections


Item Costs Quantity on Hand


Corrections are entered by using the adjustment quantity, either positive or negative. To reduce a ten-item delivery to nine, enter -1 in the Quantity field. To increase a ten-item delivery to eleven, enter 1 in the Quantity field. You cannot create supply when none exists. For example, if you receive and deliver 10 items before discovering that you actually delivered 11 items, you cannot simply increase the delivery quantity to 11. First you must increase your receipt transaction from 10 to 11. Then you can increase your delivery transaction from 10 to 11.




Difference between Returns and Corrections


Updates costUpdates cost

No physical return of goods to supplier

Updates quantity on hand

Physical return of goodsto supplier

Updates quantity on hand

Receiving Return Receiving Correction


Receiving Return You can return delivered items to receiving and return received or delivered externally sourced items to the supplier if the purchase order has neither been canceled nor finally closed. You can also return to the supplier unordered receipts that have not been matched. You can also optionally specify additional return information such as a Reason Code and RMA (Return Material Authorization) number. Receiving Correction Purchasing provides the capability to correct any receiving transaction, except another correction and a return to a receiving transaction. Each transaction is done individually correcting the previous transactions until all applicable transactions are corrected.




Guided Demonstration - Inspect and Deliver a Receipt (Required)


(N) Receiving > Receiving Transactions (M1-Seattle Manufacturing)

Perform a Quality Inspection

1. Receipt = Your receipt number

2. (B) Find

3. (B) Inspect

Note: If Oracle Quality is installed and at least one inspection plan exists for the transaction, both the Enter Quality Results option in the Tools menu and the Quality button on the menu bar will be enabled. If the QA: PO Inspection Profile option is set to Quality, when you click the Inspect button, it opens the Quality Inspection window that you defined, instead of the Purchasing Inspection window.

4. Enter inspection results according to the table:

Item Inspect

Result Quantity Quality Code Reason

Code

Comment

XXMonitor Accept 2 Above Average

Blank Passed inspection

XXMonitor Reject 2 Below Average

CompDefect Failed inspection

5. (B) OK

6. Save


Deliver Goods to a Final Destination


9. (N) Receiving > Receiving Transactions

10. In the Receipt field, enter your receipt number.




11. (B) Find

12. Complete the Receiving Transaction according to the following table:

Inspection Qty UOM Destination

Type

Item Location

Accepted Defaults Each Inventory XXMonitor M1-Seattle

Note: You’ll need to use this window carefully. Determine which record was the accepted item and which was the rejected item!

13. Save





17. (B) Find






Guided Demonstration - Process a Return to Supplier (Optional)


(N) Receiving > Returns (M1 – Seattle Manufacturing)

You can use the Returns window to return goods to a supplier OR to a customer. You may return goods to a customer if you had received defective goods, repaired them and are now ready to return them. In this exercise, you will return the goods that failed inspection to the supplier.

Return Goods to a Supplier

1. In the Receipt field enter your receipt number from the prior lab.

2. (T) Transaction Details

3. Transaction Type = Reject

4. (B) Find

5. Click the line selector check box to the left of the Quantity field.

6. Enter return information according to the following table:

Qty Return-To Supplier RMA Number Item

2 Supplier XXIBM Corporation XXRMA XXMonitor

7. (T) Details

8. Reason = CompDefect

9. Save





13. (B) Find









Guided Demonstration - Correct a Receiving Error (Optional)


(N) Receiving > Corrections

Warehouse personnel are missing two items you’ve processed as delivered. You realize that you processed your express receipt too quickly and the last two items were not shipped.

Correct the Delivery Transaction

1. Receipt = Your receipt from Express Receiving


3. Transaction Type = Deliver

4. (B) Find


6. Select shipment number 3 (the last shipment for the item on your purchase order)

7. Quantity = -2

8. Comments = Correct error in receiving transaction

9. Save

Correct the Receive Transaction

10. Navigate to the Corrections window

11. (N) Receiving > Corrections

12. Receipt = Your receipt from the Express Receiving lab


14. Transaction Type = Receive

15. (B) Find


17. Select shipment number 3 (the last shipment for the item on your purchase order)

18. Quantity = -2




19. Comments = Correct error in receiving transaction

20. Save

Verify an Expected Receipt now Exists

21. Navigate to the Receipts window

22. (N) Receiving > Receipts

23. Number = Your purchase order number from #1

24. (T) Items

25. Item = XXSoftware

26. (B) Find

27. Note that you should now have an expected delivery for the last shipment of the XXSoftware item.




30. In the Purchase Order = Your purchase order number from #1

31. (B) Find

32. Select your Express Receipt (should be the second shipment)






Practice - Inspect and Deliver a Receipt

Overview

In this practice you will inspect and deliver a receipt. Half of the items you found to be defective. You will deliver half to their final destination and the other half will be returned.

Assumptions



Tasks




2. Open the Receiving Transactions window: − Purchase Order = Your receipt number



Item Inspect

Result Quantity Quality

Code Reason

Code

Comment













Type

Item Location


Rejected Defaults Each Receiving XXMonitor M1-Seattle


7. Save








Solution - Inspect and Deliver a Receipt





• (N) Receiving > Receiving Transactions (M1-Seattle Manufacturing) − Purchase Order = Your receipt number

3. (B) Find

4. (B) Inspect



Item Inspect

Result Quantity Quality

Code Reason

Code

Comment





6. (B) OK

7. Save







• (N) Receiving > Receiving Transactions


11. (B) Find



Type

Item Location


Rejected Defaults Each Receiving XXMonitor M1-Seattle


13. Save








16. (B) Find






Practice - Process a Return to Supplier

Overview

You can use the Returns window to return goods to a supplier OR to a customer. You return goods to a customer when you receive defective goods, repair them and then return them. In this exercise, you will return the goods that failed inspection to the supplier.

Assumptions



Tasks




2. Open the Receiving Returns window:


4. (T) Transaction Details − Transaction Type = Transfer


2 Supplier Advanced Network Devices

XXRMA XXMonitor

− Reason = CompDefect











Solution - Process a Return to Supplier




2. Open the Receiving Returns window:

• (N) Receiving > Returns (M1 – Seattle Manufacturing)


4. (T) Transaction Details − Transaction Type = Transfer

5. (B) Find

6. Click the line selector check box to the left of the Quantity field.

Enter return information according to the following table:


2 Supplier Advanced Network Devices

XXRMA XXMonitor




7. (T) Details − Reason = CompDefect

8. Save





11. (B) Find






Practice - Correct a Receiving Error

Overview

Warehouse personnel are missing two items you’ve processed as delivered. You realize that you processed your express receipt too quickly and the last two items were not shipped. In this practice you will correct a receiving error.

Assumptions



Tasks




2. Navigate to the Corrections window − Receipt = Your receipt from the Express Receiving lab

3. (T) Transaction Details − Transaction Type = Deliver


5. Select shipment number 3 (the last shipment for the item on your purchase order) − Quantity = -2 − Comments = Correct error in receiving transaction


6. Navigate to the Corrections window − Receipt = Your receipt from the Express Receiving lab

7. (T) Transaction Details − Transaction Type = Receive







10. Navigate to the Receipts window − Number = Your purchase order number from Lab #1 − Item = XXSoftware

11. Note that you should now have an expected delivery for the last shipment of the XXSoftware item.


12. Open the Find Receiving Transactions window: − In the Purchase Order = Your purchase order number from Lab #1

13. Select your Express Receipt





Solution - Correct a Receiving Error





• (N) Receiving > Corrections − Receipt = Your receipt from the Express Receiving lab

3. (T) Transaction Details − Transaction Type = Deliver

4. (B) Find



7. Save






• (N) Receiving > Corrections − Receipt = Your receipt from the Express Receiving lab

9. (T) Transaction Details − Transaction Type = Receive

10. (B) Find



13. Save


14. Navigate to the Receipts window

• (N) Receiving > Receipts − Number = Your purchase order number from Lab #1

15. (T) Items − Item = XXSoftware

16. (B) Find

Note that you should now have an expected delivery for the last shipment of the XXSoftware item.






• (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing) − In the Purchase Order = Your purchase order number from Lab #1

18. (B) Find

19. Select your Express Receipt (should be the second shipment)






Overview of Pay on Receipt


Receipt

By packing slip

By receipt

Payables

Delivery

Pay on options: Invoice consolidationoptions:

By site

Invoice


Purchasing works in conjunction with Payables to streamline the procurement process by generating invoices to suppliers based on receipt transactions. Negotiate with key suppliers to use Pay on Receipt. Every invoice created by the Pay on Receipt process is one less receipt that needs to be manually keyed into Payables. Suppliers can still send the hard copy of the invoice if a physical copy is necessary for archiving. Pay on Receipt enables you to automatically create standard, unapproved invoices for payment of goods based on receipt transactions. Invoices are created using a combination of receipt and purchase order information, eliminating duplicate manual data entry and ensuring accurate and timely data processing. Payment on Receipt is also known as Evaluated Receipt Settlement (ERS) and Self Billing. You can setup your suppliers so the invoice can be based on receipt of goods or delivery of goods to their final destination. The Invoice Summary Level, set at the Supplier Site, controls the number of invoices generated.

• Packing Slip - One invoice will be generated per packing slip. (highest number of invoices)




• Receipt - One invoice will be generated per receipt. • Site - One invoice will be generated per supplier site (fewest invoices)

After receipt or delivery transactions are created, you must run the Pay on Receipt Autoinvoice process to create invoices and automatically match them to their corresponding purchase orders. The Pay on Receipt Autoinvoice process can be set up to run automatically. Set the PO: Invoice Number Prefix to add a prefix of your choice to the invoice that is created. The number is created based on the Invoice Summary Level.

• Packing Slip - The packing slip number is used as a basis to generate the invoice number. • Receipt - The receipt number is used as a basis to generate the invoice number. • Site - The date is used as a basis to generate the invoice number.

Set the PO: ERS Aging Period profile option to a number of days after the receipt to actually create the invoice when the Pay on Receipt Autoinvoice process runs. A delay will give you time to enter corrections, adjustments and returns (if any) and will result in more accurate invoices being created.




Agenda

Agenda




considerations




Reports

Reports

Expected Receipts

Unordered Receipts

Substitute Receipts

Receiving Transactions Register

Receiving Exceptions

Receiving Value by Destination Account

Reports

Expected Receipts Report The Expected Receipts Report can be used to review all or specific supplier sourced expected receipts or expected customer returns that have not yet been received for a particular date or a range of dates. The report excludes purchase orders that are cancelled, closed, or closed for receiving at the header, release, line, or shipment level. You can specify the expected receipts you want to review. Unordered Receipts The Unordered Receipts Report lists all or selected unordered receipts. Unordered receipts refer to received items that receivers could not match to purchase orders or return material authorizations (RMAs). Substitute Receipts Report Use this report to review all or specific substitute receipts. Receiving Transaction Register The Receiving Transactions Register lists detail information about your receiving transactions. The register is sorted by item, category, receipt number, document number, and transaction




date. The three-part document number represents purchase order number, purchase order line number, and purchase order shipment number. Receiving Exceptions Report Use the Receiving Exceptions Report to review receipts for which there is a receipt exception. These receipts cannot be automatically closed for receiving or invoicing. You can enter a receipt exception when you receive the item. Receiving Value by Destination Account Report The Receiving Value Report by Destination Account lists received items by purchase order destination and distribution account. If you accrue both inventory and expense at the time of receipt, you may have both inventory and expense as part of your receiving valuation account.




Reports

Reports

Receipt Adjustments

Receipt Traveler

Receiving Value

Reports (continued)

Receiving Value The Receiving Value Report shows item quantity, valuation, and detailed receipt information for your receiving inspection location. Receipt Adjustments Report Use this report to review purchase order shipments or internal requisition lines with corrections or returns to vendor. Receipt Traveler The Receipt Traveler facilitates receiving inspection and delivery of goods you receive within your organization. After you receive the goods, you can print receipt travelers and attach these tickets to the goods.




Summary

Summary

You should now be able be able to do the following:• Describe the process of receiving goods• Understand receipt routing• Understand receipt processing methods• Create Standard, Express, and Cascade receipts• Understand Substitute receipts, Unordered

Receipts, Returns and Corrections• Understand Pay on Receipt• Identify key reports• Understand setup options• Understand additional implementation

considerations


