The information in this document/presentation is the confidential information and trade secret of ATCO I-Tek and may not be disclosed to any person without

© 2010 ATCO I-Tek Inc. All Rights Reserved

The information in this document/presentation is the confidential information and trade secret of ATCO I-Tek and may not be disclosed to any person without the prior written permission of an authorized representative of ATCO I-Tek.

Commodity Sourcing in Oracle Purchasing

Presented to OAUG

February 25th, 2010


Commodity Sourcing Overview

This presentation will review:

Benefits of Commodity Sourcing in Oracle

Process Considerations

Set up of Commodity Sourcing

Creation of Requisitions using Commodity Sourcing


Benefits of Commodity Sourcing

Common and frequently used services can be automatically sourced

Multiple suppliers can be used

same type of service

different rates

Does not require Oracle Inventory

Does not require an Item Master

Process is similar to item sourcing


Process Considerations

Commodity sourcing for services requires a unique category established for each and every commodity you wish to source

The line description of the Commodity on the purchase requisition must exactly match the line description on the Blanket Purchase Order

Item sourcing take precedence over Commodity sourcing


Setting Up Commodity Sourcing

First create new categories specifically for commodity service sourcing

Commodity service categories must be unique

Ensure that the commodity category is NOT currently being used by any purchase item



Create a Blanket Purchase Order for the services/commodities using the new category



Set up a sourcing rule for the specific commodity



Assign the sourcing rule to the category



Set up the Approved Supplier List for the commodity



From the Approved Supplier List, via the Supplier Attributes button, set up one Supplier Item Attribute line for each unique Blanket Purchase Order



If more than one category is required on the Purchase Order, you must set up the Approved Supplier List for each category

Additional suppliers can be added to that category on the Approved Supplier List providing a unique Blanket Purchase Order is set up for each supplier


Commodity Sourcing - iProcurement

In Oracle iProcurement select the Advanced Search option



Search for the Supplier Name and select Go

Can search on category, but must also search on one of the top 3 fields



A list of the relevant Blanket Purchase Order lines is displayed



Confirm the Contract Number Field on the iProcurement screen – the Contract Number represents the Purchase Order number



Select all required lines you wish to request

Complete and submit the requisition for approval

Run the Oracle ‘Create Releases’ concurrent request

Run the ‘Workflow Background Process’ request



Depending on the Release Method selected on the Approved Supplier list, one of the following will occur:

Requisition is waiting in Autocreate to be processed onto a Purchase Order, or

Purchase Order is Incomplete waiting for submission to be approved, or

Requisition should now be sourced and available on a Purchase Order release


Commodity Sourcing - Core Purchasing

In Oracle, navigate to Requisitions > Requisitions screen to create a Requisition

Select Purchase Requisition for the Type



Place the cursor anywhere on the first line of the requisition



Select the Catalog button



On the ‘Search Supplier Item Catalog’ form there are various ways to find the commodity you wish to source

Select the Clear button to refresh the search options – this clears out any defaulted entries



Enter one or more of the following on the Search Supplier Item Catalog form: In the Commodity field, enter the category

to be sourced

Enter the supplier name in the Supplier Field

Upon completion, select the Find button





Select the ‘Negotiated Sources’ tab

TIP: The Profile option: ‘PO: Default Supplier Item Catalog Option’ controls which tab opens by default. The lines displayed are the sourced blanket line items for that supplier



Select a line and select the Add button. This puts a line entry on the bottom half of the screen – repeat as required until all desired lines are added to the requisition



When all required lines have been added, choose the Select button to return to the requisition screen



Once back on the Requisition creation screen, continue to create the requisition



Complete and approve the requisition as per normal business process

Run the Oracle ‘Create Releases’ concurrent request

Run the ‘Workflow Background Process’ request



Depending on the Release Method selected on the Approved Supplier list, one of the following will occur:

Requisition is waiting in Autocreate to be processed onto a Purchase Order, or

Purchase Order is Incomplete waiting for submission to be approved, or

Requisition should now be sourced and available on a Purchase Order release


Trouble shooting

There are some common reasons why commodity sourcing is unsuccessful: End Effective Date on the Blanket Purchase Order

is expired

Start Effective date on the Approved Supplier List is future dated

Line description does not EXACTLY match the line description on the corresponding Blanket Purchase Order

Create Releases or Workflow Background Process did not run or did not complete successfully


Commodity Sourcing

Questions?

Dawn-Marie Lotz

ATCO I-Tek Oracle Functional Analsyt

(780)420-3406

[email protected]

Documents

The information in this document/presentation is the confidential information and trade secret of ATCO I-Tek and may not be disclosed to any person without