R12 Oracle Purchasing Fundamentals

Transcription

1 R12 Oracle Purchasing Fundamentals Volume II - Student Guide D49874GC20 Edition 2.0 February 2009 D58418 R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM 1 ONLY. COPYING ekit MATERIALS FROM THIS

2 This documentation contains proprietary information of Oracle Corporation. It is provided under a license agreement containing restrictions on use and disclosure and is also protected by copyright law. Reverse engineering of the software is prohibited. If this documentation is delivered to a U.S. Government Agency of the Department of Defense, then it is delivered with Restricted Rights and the following legend is applicable: Restricted Rights Legend Use, duplication or disclosure by the Government is subject to restrictions for commercial computer software and shall be deemed to be Restricted Rights software under Federal law, as set forth in subparagraph (c)(1)(ii) of DFARS , Rights in Technical Data and Computer Software (October 1988). This material or any portion of it may not be copied in any form or by any means without the express prior written permission of the Education Products group of Oracle Corporation. Any other copying is a violation of copyright law and may result in civil and/or criminal penalties. If this documentation is delivered to a U.S. Government Agency not within the Department of Defense, then it is delivered with Restricted Rights, as defined in FAR , Rights in Data-General, including Alternate III (June 1987). The information in this document is subject to change without notice. If you find any problems in the documentation, please report them in writing to Worldwide Education Services, Oracle Corporation, 500 Oracle Parkway, Box SB-6, Redwood Shores, CA Oracle Corporation does not warrant that this document is error-free. Oracle and all references to Oracle Products are trademarks or registered trademarks of Oracle Corporation. All other products or company names are used for identification purposes only, and may be trademarks of their respective owners. Authors Vic Mitchell, Dee Fairbanks Simpson Technical Contributors and Reviewers Marilyn Montgomery, Barbara Nicholls, Barbara Snyder, Sharon Tennier, Vera Reyna This book was published using: oracletutor R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM 2 ONLY. COPYING ekit MATERIALS FROM THIS

3 Table of Contents Procure to Pay Lifecycle Overview Procure to Pay Lifecycle Overview Objectives Procure to Pay Lifecycle Oracle Procure to Pay Process Demand: Requisitions Source: RFQs and Quotations Suppliers Purchase Orders Receiving Invoicing Payment Overview of Oracle Application Integration Summary Oracle Purchasing Overview Oracle Purchasing Overview Procure to Pay: Procurement Objectives Agenda Overview of the Ordering Process Demand as Requisitions Requisition to Purchase Order The Purchase Order Process The Receiving Process Center-Led Procurement Agenda Purchasing Integration E-Business Foundation Purchasing Integration with General Ledger Purchasing Integration with Human Resources Purchasing Integration with Payables Purchasing Integration with Inventory Applications Technology Foundation Purchasing Integration with Oracle Alert Purchasing Integration with Oracle Workflow Purchasing Integration with e-commerce Gateway Procurement Suite Purchasing Integration with Oracle iprocurement Purchasing Integration with Oracle isupplier Portal Purchasing Integration with Oracle Sourcing Purchasing Integration with Services Procurement Purchasing Integration with Procurement Contracts E-Business Suite Purchasing Integration with Projects Purchasing Integration with WIP Purchasing Integration with Order Management Purchasing Integration with Quality Purchasing Integration with Advanced Pricing Purchasing Integration with ASCP/MRP Purchasing Integration with Assets Purchasing Integration with Consigned and Vendor Managed Inventory Purchasing Open Interfaces and APIs R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM i ONLY. COPYING ekit MATERIALS FROM THIS

4 E-Business Suite Setup Practice Summary Enterprise Structure Locations, Organizations, and Items Enterprise Structure Locations, Organizations, and Items Objectives Agenda What is Enterprise Structure? The Oracle Enterprise Structure Ledger Components Oracle Purchasing and the Enterprise Structure Oracle Inventory Organizations Agenda Defining Locations Examples of Locations Defining Locations in Purchasing Agenda Inventory Organizations Inventory Organization Setup Defining an Inventory Organization Financial Impact of Inventory Parameters Purchase Price Variance Invoice Price Variance Agenda Define Units of Measure Unit of Measure Setup Steps Define Unit of Measure Classes and Units of Measure Examples of Unit of Measure Classes and Units of Measure (UOM) Unit of Measure Conversion Agenda Item Categories Create Item Category Codes Describing and Using Category Sets Establish the Relationship Between the Category, Category Set and Item Agenda What is an Item? Oracle Applications That Use Items Flow of Default Values Item Attributes Item Master Organization and Inventory Organizations Overview of Creating an Item Item Templates Describing Item Attributes - Inventory Describing Item Attributes - Purchasing Describing Item Attributes - Receiving Defining Item Relationships - Purchasing Agenda Additional Setup Considerations Multiple Organizations Access Control Setup Set Profile Options Enterprise Structure Summary Suppliers Suppliers Procure to Pay: Suppliers Objectives Agenda Overview of Suppliers R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ii ONLY. COPYING ekit MATERIALS FROM THIS

5 Purchasing Use of Supplier Information Flow of Default Values Agenda Supplier Record Structure Entering Standard Supplier Basic Information Supplier Company Profile Supplier Profile - Organization Supplier Profile Address Book Supplier Sites Supplier Profile Contact Directory Supplier Profile Business Classification Supplier Profile - Banking Details Supplier Terms and Control Supplier Profile - Accounting Supplier Profile - Tax and Reporting Supplier Profile - Purchasing Supplier Profile - Receiving Supplier Profile Payment Details Supplier Profile Invoice Details Suppliers Quick Update Page Supplier Level Versus Site Level Entry Agenda Maintaining Supplier and Supplier Site Information Avoiding Duplicate Suppliers Merging Suppliers Data Example - Supplier Merge Merging Suppliers Reports Agenda Supplier Reports Agenda Financials Options: Supplier-Purchasing Financials Options: Human Resources Supplier Lookup Codes Profile Options Agenda Responsibility for Supplier Entry/Maintenance Supplier Naming Conventions Supplier Naming Convention Examples Supplier Numbering Options Supplier Conversion Methodology Setup of Fax or isupplier Portal: Supplier Self-Service Summary Document Security, Routing and Approval Document Security, Routing and Approval Procurement: Purchasing Documents Objectives Agenda Overview of Document Security, Approval and Routing Agenda Document Security Levels Document Access Levels Agenda Document Approval - Jobs and Positions Document Routing Option #1: Employee/Supervisor Relationship Document Routing Option #2: Position Approval Hierarchy Position Approval Hierarchies R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM iii ONLY. COPYING ekit MATERIALS FROM THIS

6 Document Types - Approval Settings Document Types - Control Creating Approval Groups Approval Groups - Illustration Assigning Approval Groups Enter People Run Fill Employee Hierarchy Process Selecting Approval Paths Agenda Reports Agenda Financial Options Oracle Workflow Global Supervisor/Approver Agenda Additional Implementation Considerations What if...? Strengths and Weaknesses of Approvals Using the Employee/Supervisor Relationship Strengths and Weaknesses of Approvals Using Position Approval Hierarchies Oracle Approval Manager for Requisitions Summary RFQs and Quotations RFQs and Quotations Procurement: RFQs & Quotations Objectives Agenda RFQs and Quotations Agenda Request for Quotation RFQ Lifecycle Send Notifications RFQ Types Supplier List RFQ Structure RFQ Header RFQ Lines RFQ Price Breaks/Shipments Agenda Quotations Quotation Lifecycle Send Notifications Quotation Types Quotation Structure Quotation Header Quotation Lines Quotation Price Breaks/Shipments Quotation Approvals Agenda RFQ and Quotations Reports Agenda Purchasing Options RFQ and Quotations Lookup Codes RFQ and Quotations Profile Options Agenda Additional RFQ and Quotations Implementation Considerations Summary R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM iv ONLY. COPYING ekit MATERIALS FROM THIS

7 Approved Supplier Lists and Sourcing Rules Approved Supplier Lists and Sourcing Rules Procurement: Supplier Identification Objectives Overview of Sourcing in Purchasing Agenda Approved Supplier Lists Supplier Statuses ASL Common Header Attributes ASL Header Attributes - Item ASL Header Attributes - Commodity Supplier-Commodity/Item Attributes Supplier-Commodity/Item Attributes Source Document Supplier-Commodity/Item Attributes Supplier Scheduling Supplier-Commodity/Item Attributes Planning Constraints Agenda Sourcing Rules Overview Sourcing Rules Oracle Products That Use Sourcing Rules Create a Sourcing Rule Create a Sourcing Rule Assignment Levels of Sourcing Rule Assignments Sourcing Rules with an ASL Source Document Sourcing Rules without an ASL Source Document Default Sourcing Information to Requisitions Default Sourcing Information to Standard Purchase Orders Automatic Sourcing Enablement During Blanket Agreement Approval Generate Sourcing Rules and ASLs from Blanket Agreements Concurrent Program Agenda Sourcing Profile Options Agenda Additional Sourcing Implementation Considerations Summary Requisitions Requisitions Procurement: Requisitions Objectives Agenda Where Purchase Requisitions Fit Manual Requisitions from Purchasing and iprocurement Purchasing Document Flow Requisition Lifecycle Send Requisition Notifications Agenda Requisition Structure Default Value Hierarchy Requisition Preferences Requisition Header Requisition Line Requisition Distribution Allocating Costs to Multiple Charge Accounts Submitting Requisitions for Approval Approving Requisitions Requisition Actions Oracle Purchasing Supplier Item Catalog Using the Supplier Item Catalog R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM v ONLY. COPYING ekit MATERIALS FROM THIS

8 Requisition Templates Agenda Internally Sourced Requisitions Overview Internal Requisition Integration Internal Requisitions: Setup Requirements Internal Requisition Process Controlling Requisition Sourcing Creating Internal Sales Orders Creating Internal Sales Orders with OrderImport Internally Sourced Requisitions Prerequisites Agenda Requisitions Open Interface Oracle Inventory and Requisition Import WIP Outside Processing Oracle Master Scheduling/MRP and Requisition Import Master Scheduling/MRP Group By Requisition Import Process Requisition Import Validation Requisition Groups Requisition Groups: MRP Example Purchasing Open Interface Tables Agenda Requisition Reports Agenda Purchasing Options Document Types Lookup Codes Expense Account Rules Profile Options Agenda Requisition Implementation Considerations Additional Requisition Implementation Considerations Summary Purchase Orders Purchase Orders Procurement: Purchase Orders Objectives Agenda Purchasing Document Flow Creating Purchase Orders Purchase Order Types Purchase Order Components and Record Structure Purchase Order Document Structure Overview of Automatic Purchase Order Creation Agenda Overview of Standard Purchase Orders Default Value Hierarchy Simplify the Entry of Purchase Orders: Preferences Standard Purchase Order Elements Structure of a Simple Standard Purchase Order Structure of a More Complex Standard Purchase Order Entering Standard Purchase Order Header Information Standard Purchase Orders Terms and Conditions Entering Standard Purchase Order Lines Tabbed Regions Standard Purchase Order Line Items Tabbed Region Standard Purchase Order Line Price Reference Tabbed Region R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM vi ONLY. COPYING ekit MATERIALS FROM THIS

9 Standard Purchase Order Line Reference Documents Tabbed Region Standard Purchase Order Line More Tabbed Region Standard Purchase Order Line Temporary Labor Tabbed Region Entering Standard Purchase Order Shipments - Tabbed Regions Standard Purchase Order Shipment Shipments Tabbed Region Standard Purchase Order Shipment More Tabbed Region Standard Purchase Order Shipment Status Tabbed Region Standard Purchase Order Shipment Receiving Controls Button Entering Standard Purchase Order Distributions - Tabbed Regions Standard Purchase Order Distribution Destination Tabbed Region Standard Purchase Order Distribution More Tabbed Region Standard Purchase Order Distribution Project Tabbed Region Supplier Document Attachments Approve Standard Purchase Order Agenda When to Use a Blanket Purchase Agreement Blanket Releases Blanket Purchase Agreements Additional Information Entered Blanket Purchase Agreements Additional Information - Header Blanket Purchase Agreements Additional Information - Lines Blanket Purchase Agreements Additional Information - Price Breaks Notification Controls Approve Blanket Purchase Agreement Blanket Purchase Agreement and Blanket Releases Blanket Releases Structure - Header Blanket Releases Structure Shipments and Distributions Center-Led Procurement Creating Global Blanket Agreements Agenda When to Use a Contract Purchase Agreement Contract Purchase Agreements Additional Information Entered Standard Purchase Order Line Reference Documents Tabbed Region Creating Global Contract Agreements Agenda When to Use a Planned Purchase Order Components of a Planned Purchase Order Planned Purchase Order Information Entered Agenda Purchase Order Inquiry Modifying Purchase Orders Printing Purchase Orders Creating Purchase Order Revisions Document Publishing Archiving Purchase Orders Purchase Order Statuses - Typical Cycle Entering Purchase Order Acceptances Workflow Notifications Copying Purchase Orders Agenda Purchase Document Interfaces Purchasing Documents Open Interface Purchase Document Import Validation Purchasing Open Interface Tables Purchasing APIs Agenda Purchase Order Reports Agenda R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM vii ONLY. COPYING ekit MATERIALS FROM THIS

10 Important Purchasing Options Important Profile Options PO Communication Profile Options Other Setups Transaction Delivery Setup Printed Purchase Orders Purchasing Document Fax Setup Overview Purchasing Document Setup Overview Oracle e-commerce Gateway Overview Purchase Order EDI Transactions Oracle XML Gateway Overview Purchase Order XML Transactions Retroactive Price Changes Agenda Responsibility for Purchase Order Entry and Maintenance Purchase Order Integration Issues Creating Purchase Orders and Releases Purchase Order Numbering Options Purchase Order Conversion Methodology Electronic Transaction Delivery Integrated Oracle Products Summary Automating Document Creation Automating Document Creation Procurement: Purchase Orders Objectives Agenda Creating Purchase Documents from Requisitions Benefits of using AutoCreate Overview of AutoCreate Automatic Creation Mode Find Requisition Lines Select Document Creation Criteria Select Requisition Lines Select Automatic Creation Mode Autocreate New Document Window Manual Creation Mode Add to Existing Document Modify Requisition Lines Return Requisition Lines Agenda Benefits of using the Create Releases Program Overview of the Create Releases Program Automatic Release Generation Running the Create Releases Program Create Releases Document Creation Prerequisites Agenda Benefits of Automatic Document Creation using Workflow Overview of Automatic Document Creation using Workflow Workflow Document Creation Overview Workflow Document Creation Prerequisites PO Create Documents Workflow Setting Key Workflow Attributes Workflow Document Creation Summary Agenda Automatic Document Creation Profile Options R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM viii ONLY. COPYING ekit MATERIALS FROM THIS

11 Agenda Additional Implementation Considerations Oracle Sourcing and Document Creation Summary Professional Buyer's Work Center Professional Buyer's Work Center Objectives Procure to Pay: Procurement Agenda What is the Professional Buyer's Work Center? Business Benefits of the Buyer's Work Center Buyer's Work Center Overview Agenda Demand Workbench and Requisition Summary Demand Workbench Requisition Views Create A Personalized Requisition View Requisition Summary Managing Requisitions in the Buyer's Work Center Agenda Default and Personalized Order Views Order Details Document Styles Creating a Purchase Order in the Buyer's Work Center Unified Procurement Catalog Access Agenda Default and Personalized Agreement Views Agreement Details Creating a Purchase Agreement in the Buyer's Work Center Uploading Blanket Agreement Lines Agenda Buyer's Work Center Profile Options Requisition Management Key Profile Options Enhanced Catalog Access Setup Preferences Agenda Additional Implementation Considerations Oracle Sourcing and Document Creation Summary Receiving Receiving Procurement: Purchase Orders Objectives Agenda What is Receiving? Overview of Receiving Locations Agenda Overview of Receipt Routing Direct Receipt Routing Standard Receipt Inspection Required Oracle Process Quality Integration Agenda Receipt Processing Methods Standard Receipt Express Receipt Cascade Receipt ASNs and ASBNs R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ix ONLY. COPYING ekit MATERIALS FROM THIS

12 Desktop Receiving in iprocurement Entering Expected Receipts Receipt Structure Receipt Header Receipt Line Control the Receiving Transaction Processor Receiving Tolerances Control Numbers Agenda Substitute Receipts Unordered Receipts Overview of Returns and Corrections Entering Returns Entering Corrections Comparing Returns and Corrections Overview of Pay on Receipt Agenda Receiving Open Interface (ROI) ROI Supported Transactions Load the Receiving Open Interface Receipt Import Validation Purchasing Open Interface Tables Agenda Receiving Reports Agenda Purchasing Options Receiving Options Receiving Profile Options ASN and ASBN Electronic Receipts Agenda Additional Implementation Considerations Summary Purchasing Accounting Purchasing Accounting Objectives Agenda Overview of the Procure to Pay Period Close Close the PO Period Steps Close the PO Period Business Flow Agenda Key Accounts in Procure to Pay Accrual Accounting Perpetual Accrual (On Receipt) Accrual Reconciliation Process Accrual Accounting Periodic Accrual (Period End) Accounting for Mass Additions Periodic Accrual (Period End) Accounting for Payments with Cash in Transit (Cash Clearing) Accounting for Payments without Cash in Transit (Cash Clearing) Agenda Foreign Currency in Purchasing Exchange Rate Overview Currency Similarities Between Requisitions and Purchase Orders Currency Differences Between Requisitions and Purchase Orders Requisitions and Automatically Created Purchase Orders Using Foreign Currency Approving Requisitions and Purchase Orders Using Foreign Currency Invoice Currency Matching Agenda R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM x ONLY. COPYING ekit MATERIALS FROM THIS

13 Reports Agenda Financials Options Purchasing Options Payables Options Agenda Purchasing Accounting Implementation Considerations Summary Purchasing Administration Purchasing Administration Objectives Agenda Maintaining Your Oracle Purchasing Database Records Integration with Payables What is MassCancel? Using Purchasing MassCancel The Define MassCancel Listing Purge Overview Preparing for a Purge Purge Category Inclusion Conditions for a Purge: Purchasing Conditions for a Purge: Payables Purge Reports Restarting or Aborting a Purge Purge Summary Information Recommendations for Efficient Purging Agenda Start Concurrent Managers Schedule Background Processes Schedule Other Processes Agenda Purge: Issues to Consider Summary Appendix A - Setup Steps Appendix A - Setup Steps Objectives Agenda Setting Up Purchasing Define Users for Setup Tasks Define a Ledger Define Human Resources Key Flexfields Set Address Style Default Define Locations Define Organizations Create Responsibilities Set Key Profile Options Convert to Multi-Org Set Up Descriptive Flexfields Define Purchasing Lookups and Codes Define Payment Terms Define Tax Define Freight Carriers Define Financials Options Define Inventory Key Flexfields Set Up Shorthand Aliases Define Units of Measure R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xi ONLY. COPYING ekit MATERIALS FROM THIS

14 Define Standard Attachments Define Item Attributes, Codes, and Templates Define Category Codes and Category Sets Define Catalog Groups Define Subinventories Define Cross-Reference Types Define Jobs, Positions, and Position Hierarchies Define Personnel Define Approval Groups and Assignments Define Buyers Set Up Document Types Define Lookup Codes and Classes Define Line Types Define Purchasing Options Define Receiving Options Set Address Style Default Define Suppliers Set Up Credit Card Programs Define Items Modify Account Generator Set Up Workflow Options Start Concurrent Managers Schedule Background Processes Set Up Sourcing Rules and Assignments Open Accounting Periods Perform Additional System Administration Create Folders Agenda Reports Agenda Profile Options (Required) Profile Options (Recommended) Profile Options (Review) Profile Options (Overlooked) Summary R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xii ONLY. COPYING ekit MATERIALS FROM THIS

15 Preface Profile Before You Begin This Course Before you begin this course, you should have the following qualifications: Thorough knowledge of Oracle Applications Working experience with procurement Prerequisites Oracle Applications Foundations How This Course Is Organized R12 Oracle Purchasing Fundamentals Ed 2 is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations and written practice sessions reinforce the concepts and skills introduced. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xiii ONLY. COPYING ekit MATERIALS FROM THIS

16 Related Publications Oracle Publications Title Oracle Purchasing User s Guide Oracle Payables User s Guide Oracle Inventory User s Guide Oracle Manufacturing APIs and Open Interfaces Manual Additional Publications System release bulletins Installation and user s guides Read-me files International Oracle User s Group (IOUG) articles Oracle Magazine R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xiv ONLY. COPYING ekit MATERIALS FROM THIS

17 Typographic Conventions Typographic Conventions in Text Convention Element Example Bold italic Caps and lowercase Courier new, case sensitive (default is lowercase) Initial cap Italic Quotation marks Uppercase Glossary term (if there is a glossary) Buttons, check boxes, triggers, windows Code output, directory names, filenames, passwords, pathnames, URLs, user input, usernames Graphics labels (unless the term is a proper noun) Emphasized words and phrases, titles of books and courses, variables Interface elements with long names that have only initial caps; lesson and chapter titles in crossreferences SQL column names, commands, functions, schemas, table names The algorithm inserts the new key. 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. 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 User input: Enter 300 Username: Log on as scott Customer address (but Oracle Payables) Do not save changes to the database. For further information, see Oracle7 Server SQL Language Reference Manual. Enter user_id@us.oracle.com, where user_id is the name of the user. Select Include a reusable module component and click Finish. This subject is covered in Unit II, Lesson 3, Working with Objects. 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] R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xv ONLY. COPYING ekit MATERIALS FROM THIS

18 Typographic Conventions in Code Convention Element Example Caps and Oracle Forms When-Validate-Item lowercase triggers Lowercase Column names, table names SELECT last_name FROM s_emp; Passwords PL/SQL objects DROP USER scott IDENTIFIED BY tiger; OG_ACTIVATE_LAYER (OG_GET_LAYER ( prod_pie_layer )) Lowercase italic Uppercase Syntax variables SQL commands and functions CREATE ROLE role SELECT userid FROM emp; Typographic Conventions in Oracle Application 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 (ST) = Sub Tab R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xvi ONLY. COPYING ekit MATERIALS FROM THIS

19 Typographical Conventions in Oracle Application 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. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xvii ONLY. COPYING ekit MATERIALS FROM THIS

20 THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ONLY. COPYING ekit MATERIALS FROM THIS

21 Purchase Orders Chapter 9 Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 1 ONLY. COPYING ekit MATERIALS FROM THIS

22 Purchase Orders Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 2 ONLY. COPYING ekit MATERIALS FROM THIS

23 Procurement: Purchase Orders Procurement: Purchase Orders Oracle Purchasing provides the functionality to complete the procurement portion of the Procure to Pay process. In the Oracle Procurement Suite of applications, ordering is a term generally used to indicate a business flow that results in a purchase of goods or services. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 3 ONLY. COPYING ekit MATERIALS FROM THIS

24 Objectives Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 4 ONLY. COPYING ekit MATERIALS FROM THIS

25 Agenda Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 5 ONLY. COPYING ekit MATERIALS FROM THIS

26 Purchasing Document Flow Purchasing Document Flow A requisition is generated either manually or by the system, which may be turned into a purchase order by the buyer. Sometimes the buyer decides a request for quotation (RFQ) is required by other suppliers to determine the best price for the goods or services requested. Once the quote is received back, that information can be used to finalize the purchase order. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 6 ONLY. COPYING ekit MATERIALS FROM THIS

27 Creating Purchase Orders Creating Purchase Orders Purchase orders are created based on demand from many sources, some of them outside of the Procure to Pay applications. Note that some demand is satisfied from internal supplies. Demand for Goods or Services Import requisitions 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 Oracle iprocurement. Procurement 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. Services Procurement Using Oracle Services Procurement, organizations can efficiently manage the procurement of contingent labor resources. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 7 ONLY. COPYING ekit MATERIALS FROM THIS

28 Oracle Sourcing (not shown above) Buyers create Oracle Sourcing negotiation documents from the requisition pool. Once buyers have made their award decisions in Oracle Sourcing, they create standard purchase orders or blanket purchase agreements directly in Oracle Purchasing. Oracle Procurement Contracts Since a purchase order is a legally binding contract with a supplier, buyers can add complex contractural language and terms to the purchase order from a library of terms that have been approved by the legal department. This is managed through Oracle Procurement Contracts. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 8 ONLY. COPYING ekit MATERIALS FROM THIS

29 Purchase Order Types Purchase Order Types In Oracle Purchasing there are several different types of purchase orders designed to satisfy different business requirements. Standard Purchase Order (PO) 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 9 ONLY. COPYING ekit MATERIALS FROM THIS

30 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. Global Agreement (not shown above) A special type of purchase agreement that is similar in structure to a blanket purchase agreement. Using global agreements, buyers can negotiate enterprise-wide pricing, business by business, then execute and manage those global agreements in one central shared services environment. Organizations within the enterprise then access the agreement to create purchase orders that leverage the pre-negotiated prices and terms. Note: Global agreements can be either Blanket or Contract Purchase Agreements. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 10 ONLY. COPYING ekit MATERIALS FROM THIS

31 Purchase Order Components and Record Structure Purchase Order Components and Record Structure The structure of an Oracle Purchasing purchase order consists of four major components. 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 onetime 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 11 ONLY. COPYING ekit MATERIALS FROM THIS

32 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 12 ONLY. COPYING ekit MATERIALS FROM THIS

33 Purchase Order Document Structure Purchase Order Documents Structure This is a simplified entity relationship diagram (ERD) for purchase order documents. For complete details of all tables that are involved with purchase orders, see the Oracle ebusiness Suite Electronic Technical Reference Manual that is available from OracleMetaLink. PO_HEADERS_ALL PO_HEADERS_ALL (header) contains information for your purchase order documents. Each row contains buyer information, supplier information, notes, foreign currency information, terms and conditions information, and the document status. Oracle Purchasing uses this information to record information related to a complete document. The primary key is PO- HEADER_ID. PO_LINES_ALL PO_LINES_ALL (lines) stores current information about each purchase order line. You need one row for each line you attach to a document. Each row includes the line number, item number and category unit, price, tax information, and quantity ordered for the line. Oracle Purchasing uses this information to record and update item and price information for purchase orders, quotations, and RFQs. The primary key is PO_LINE_ID. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 13 ONLY. COPYING ekit MATERIALS FROM THIS

34 PO_LINE_LOCATIONS_ALL This table (shipments) contains information about purchase order shipment schedules and blanket agreement price breaks. You must have one row for each schedule or price break you attach to a document line. Each row contains the location, quantity, and dates for each shipment schedule. Oracle Purchasing uses this information to record delivery schedule information for purchase orders and price break information for blanket purchase orders, quotations, and RFQs. The primary key is LINE_LOCATION_ID. PO_DISTRIBUTIONS_ALL PO_DISTRIBUTIONS_ALL (distributions) contains accounting information for a purchase order shipment line. Oracle Purchasing uses this information to record accounting and requisition information for purchase orders and releases. It is one of five tables that stores purchase orders and releases. The primary key is PO_DISTRIBUTION_ID. PO_RELEASES_ALL This table contains information about blanket and planned purchase order releases. You need one row for each release you issue for a blanket or planned purchase order. Each row includes the buyer, date, release status, and release number. Each release must have at least one purchase order shipment (PO_LINE_LOCATIONS_ALL). The primary key is PO_RELEASE_ID. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 14 ONLY. COPYING ekit MATERIALS FROM THIS

35 Overview of Automatic Purchase Order Creation Overview of Automatic Purchase Order Creation Automatic purchase order creation is discussed in detail in the Automatic Document Creation topic of this course. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 15 ONLY. COPYING ekit MATERIALS FROM THIS

36 Agenda Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 16 ONLY. COPYING ekit MATERIALS FROM THIS

37 Overview of Standard Purchase Orders Overview of Standard Purchase Orders 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 17 ONLY. COPYING ekit MATERIALS FROM THIS

38 Default Value Hierarchy Default Value Hierarchy Defaults set at higher levels flow down to lower levels where you can override them. Defaults reduce data entry by providing default values based on corporate policy. Optional defaults (especially the higher level ones) should be left blank if you frequently override them. Note: Changes to default values affect only new records, not existing records. Details of default values and how they are selected for a purchase order field can be found in the Purchase Order Defaulting Rules section of the Oracle Purchasing User s Guide. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 18 ONLY. COPYING ekit MATERIALS FROM THIS

39 Simplify the Entry of Purchase Orders: Preferences Simplify the Entry of Purchase Orders - Preferences 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 of Using Preferences 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 19 ONLY. COPYING ekit MATERIALS FROM THIS

40 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 20 ONLY. COPYING ekit MATERIALS FROM THIS

41 Standard Purchase Order Elements Standard Purchase Order Elements Purchasing Responsibility (N) Purchase Orders > Purchase Orders The standard purchase order has all major components and allows a supplier to locate and deliver the goods or services ordered. All purchase order types represent some combination of the basic structural 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 21 ONLY. COPYING ekit MATERIALS FROM THIS

42 Structure of a Simple Standard Purchase Order Structure of a Simple Standard Purchase Order 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 22 ONLY. COPYING ekit MATERIALS FROM THIS

43 Structure of a More Complex Standard Purchase Order Structure of a More Complex Standard Purchase Order 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 23 ONLY. COPYING ekit MATERIALS FROM THIS

44 Entering Standard Purchase Order Header Information Entering Standard Purchase Order Header Information These are the major fields entered when creating a standard purchase order header. 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 24 ONLY. COPYING ekit MATERIALS FROM THIS

45 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 Oracle isupplier Portal. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 25 ONLY. COPYING ekit MATERIALS FROM THIS

46 Standard Purchase Orders Terms and Conditions 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). Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 26 ONLY. COPYING ekit MATERIALS FROM THIS

47 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. Note 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 can be viewed by users entering actual receipt transactions. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 27 ONLY. COPYING ekit MATERIALS FROM THIS

48 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 28 ONLY. COPYING ekit MATERIALS FROM THIS

49 Standard Purchase Order Line Items Tabbed Region 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 29 ONLY. COPYING ekit MATERIALS FROM THIS

50 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 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 30 ONLY. COPYING ekit MATERIALS FROM THIS

51 Standard Purchase Order Line Price Reference Tabbed Region 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 31 ONLY. COPYING ekit MATERIALS FROM THIS

52 Standard Purchase Order Line Reference Documents Tabbed Region 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 32 ONLY. COPYING ekit MATERIALS FROM THIS

53 Standard Purchase Order Line More Tabbed Region 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 33 ONLY. COPYING ekit MATERIALS FROM THIS

54 Standard Purchase Order Line Temporary Labor Tabbed Region Standard Purchase Order Line - Temporary Labor Tabbed Region If your organization has licensed and implemented Oracle Services Procurement, an additional tab for Temporary Labor appears in the Line region of the Purchase Order window. This region enables the entry of information related to the contractor that will be providing services. First Name & Last Name: Enter the contractors name. Start Date & End Date: Enter the starting date and ending date that the contractor is going to be working. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 34 ONLY. COPYING ekit MATERIALS FROM THIS

55 Entering Standard Purchase Order Shipments - Tabbed Regions Entering Standard Purchase Order Shipments - Tabbed Regions 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 35 ONLY. COPYING ekit MATERIALS FROM THIS

56 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. Note that Quantity becomes Amount for Oracle Procurement Services lines. 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 36 ONLY. COPYING ekit MATERIALS FROM THIS

57 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. Country of Origin (not shown above): The Country of Origin is the country in which an item is manufactured and is used to track goods for reporting purposes (Movement Statistics). Taxable and Tax Code (not shown above): Select Taxable and you are required to enter a Tax Code. Enter or use the default Tax Code for taxable items. The defaults for Tax Codes come from the Preferences and Purchasing Options windows. See the Tax Defaults in Purchasing topic in the Oracle Purchasing User s Guide. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 37 ONLY. COPYING ekit MATERIALS FROM THIS

58 Standard Purchase Order Shipment More Tabbed Region 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 38 ONLY. COPYING ekit MATERIALS FROM THIS

59 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. VMI (not shown above): Vendor Managed Inventory (VMI) refers to a business arrangement in which the buyer delegates replenishing and planning activity for an item to the supplier. If the line item is under VMI control this flag will be checked. For more information about VMI, see the Oracle Inventory Consigned Inventory from Supplier Process Guide. Consigned (not shown above): Consigned inventory refers to a type of inventory practice where you receive and maintain goods belonging to one of your suppliers. If the line item is a consigned item, this flag will be checked. For more information about consigned inventory, see the Oracle Inventory Consigned Inventory from Supplier Process Guide. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 39 ONLY. COPYING ekit MATERIALS FROM THIS

60 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 40 ONLY. COPYING ekit MATERIALS FROM THIS

61 Standard Purchase Order Shipment Receiving Controls Button 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 41 ONLY. COPYING ekit MATERIALS FROM THIS

62 Entering Standard Purchase Order Distributions - Tabbed Regions Entering Standard Purchase Order Distributions - Tabbed Regions 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 42 ONLY. COPYING ekit MATERIALS FROM THIS

63 Standard Purchase Order Distribution Destination Tabbed Region 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 43 ONLY. COPYING ekit MATERIALS FROM THIS

64 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, Accrual, and Variance Accounts: 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 If the receiving destination operating unit is different from the purchasing operating unit, you also need to specify destination Charge and Variance accounts. Recovery Rate (not shown above): The recovery rate is the percentage of tax that your business can reclaim for credit. The recovery rate defaults in based on the Tax Code in the purchase order Shipments window and the setup in the Financials Options window. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 44 ONLY. COPYING ekit MATERIALS FROM THIS

65 Standard Purchase Order Distribution More Tabbed Region 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 online requisition. If so, Purchasing checks the box and displays the online requisition number and line number, you cannot update this field. If this distribution does not come from an online requisition, enter the paper requisition number in this field. The default is the paper requisition number from the Purchase Order Preferences window, if entered. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 45 ONLY. COPYING ekit MATERIALS FROM THIS

66 Standard Purchase Order Distribution Project Tabbed Region 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 46 ONLY. COPYING ekit MATERIALS FROM THIS

67 Supplier Document Attachments Supplier Document Attachments You can include as attachments to your supplier: PDF documents with attachments Text attachments, notes, files and URLs Attachments compressed as.zip Files You can also send failure notifications to both the supplier and buyer. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 47 ONLY. COPYING ekit MATERIALS FROM THIS

68 Approve Standard Purchase Order Approve Standard Purchase Order Approval is the last step in creating a Purchase Order. 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, , XML (extensible Markup Language) or through electronic data interchange (EDI). If you select Print, the purchase order is printed immediately on your session printer. The Approve Document window defaults the transmission method defined for the supplier, but you can change some of these defaults for a particular purchase order. Setup Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 48 ONLY. COPYING ekit MATERIALS FROM THIS

69 of these document delivery options is discussed in the Understand setup options section of this (Purchase Orders) course module. Note: You cannot select Print, Fax, or if the document is to be sent by XML or EDI. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 49 ONLY. COPYING ekit MATERIALS FROM THIS

70 Agenda Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 50 ONLY. COPYING ekit MATERIALS FROM THIS

71 When to Use a Blanket Purchase Agreement When to Use a Blanket Purchase 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 51 ONLY. COPYING ekit MATERIALS FROM THIS

72 Blanket Releases 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 52 ONLY. COPYING ekit MATERIALS FROM THIS

73 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 Oracle iprocurement. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 53 ONLY. COPYING ekit MATERIALS FROM THIS

74 Blanket Purchase Agreements Additional Information Entered 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 54 ONLY. COPYING ekit MATERIALS FROM THIS

75 Blanket Purchase Agreements Additional Information - Header 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. Global: Select the Global checkbox only if you are creating a global agreement. Global agreements will be discussed later in this module. 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 Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 55 ONLY. COPYING ekit MATERIALS FROM THIS

76 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 56 ONLY. COPYING ekit MATERIALS FROM THIS

77 Blanket Purchase Agreements Additional Information - Lines 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, Oracle 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 Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 57 ONLY. COPYING ekit MATERIALS FROM THIS

78 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. More Tabbed Region The information entered here is the same as for a standard purchase order. 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 58 ONLY. COPYING ekit MATERIALS FROM THIS

79 Blanket Purchase Agreements Additional Information - Price Breaks 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). Effective Dates: Enter the date range that this price remains in effect. Break Price: 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 59 ONLY. COPYING ekit MATERIALS FROM THIS

80 Note: Oracle Purchasing is integrated with Oracle Advanced Pricing to allow you to model complex pricing rules for items listed on Global Blanket Agreements. Requisitions and orders sourced to these agreements can now leverage dynamic pricing formulas and/or modifiers defined in Oracle Advanced Pricing, in addition to the agreement line price and price breaks. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 60 ONLY. COPYING ekit MATERIALS FROM THIS

81 Notification Controls Notification Controls 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, Oracle Purchasing sends you an alert, using Alert (or ). 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 61 ONLY. COPYING ekit MATERIALS FROM THIS

82 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 62 ONLY. COPYING ekit MATERIALS FROM THIS

83 Approve Blanket Purchase Agreement Approve Blanket Purchase Agreement 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. Note: You can create sourcing rules from this blanket purchase agreement automatically. This is discussed in the Approved Supplier Lists and Sourcing Rules course topic. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 63 ONLY. COPYING ekit MATERIALS FROM THIS

84 Blanket Purchase Agreement and Blanket Releases Blanket Purchase Agreement and Blanket Releases 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 64 ONLY. COPYING ekit MATERIALS FROM THIS

85 Blanket Releases Structure - Header Blanket Releases Structure - 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 65 ONLY. COPYING ekit MATERIALS FROM THIS

86 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 66 ONLY. COPYING ekit MATERIALS FROM THIS

87 Blanket Releases Structure Shipments and Distributions Blanket Releases Structure - Shipments and Distributions Like the standard purchase order, releases have shipments and distributions. Shipments Window 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 67 ONLY. COPYING ekit MATERIALS FROM THIS

88 Center-Led Procurement Center-Led Procurement The business concept behind Center-Led procurement is to enable agreements with suppliers for enterprise-wide pricing. It is accomplished through the use of global blanket agreements and global contract agreements. These global agreements are referenced by another business unit s requisition and could be paid for by a third business unit. Final accounting charges to a requesting business unit can be accomplished through intercompany invoicing. Out of the box Oracle Purchasing works in a decentralized procurement model where all business units are expected to perform all aspects of the procure to pay cycle. This slide depicts a central sourcing with local execution model. You can also set up a complete shared services or a transfer to local business unit model. For setup details, see the Oracle Purchasing User s Guide. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 68 ONLY. COPYING ekit MATERIALS FROM THIS

89 Creating Global Blanket Agreements Creating Global Blanket Agreements Global agreements are negotiated for enterprise-wide pricing. The global agreement can be assigned to the organizations which are allowed to use them using Enable Organizations in the Tools menu. The organizations available to enable in this window are determined by the supplier sites for the agreement s assigned supplier. Using Global Agreements Enabled organizations within the enterprise then reference the global agreement and create standard purchase orders to take advantage of the pre-negotiated prices and terms. The most typical use would be for the requisitioner or buyer to select items from the Negotiated Sources portion of the Supplier Item Catalog in Oracle Purchasing. Note: Global agreements are used by creating a standard purchase order referring to the global agreement, NOT a release. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 69 ONLY. COPYING ekit MATERIALS FROM THIS

90 Important Setup Considerations Purchasing supplier sites must be defined for each operating unit required. Outside processing items cannot be used on a global agreement. Cumulative pricing cannot be used on a global agreement. Intercompany transaction flows must be created for intercompany invoicing to take place. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 70 ONLY. COPYING ekit MATERIALS FROM THIS

91 Agenda Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 71 ONLY. COPYING ekit MATERIALS FROM THIS

92 When to Use a Contract Purchase Agreement When to Use a Contract Purchase Agreement 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. Oracle 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 72 ONLY. COPYING ekit MATERIALS FROM THIS

93 Contract Purchase Agreements Additional Information Entered 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. Global: Select the Global checkbox only if you are creating a global agreement. Global agreements were discussed in the blanket agreement topic. 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 Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 73 ONLY. COPYING ekit MATERIALS FROM THIS

94 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 74 ONLY. COPYING ekit MATERIALS FROM THIS

95 Standard Purchase Order Line Reference Documents Tabbed Region 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. Oracle 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 course module or refer to the Workflow for Creating Purchase Orders and Releases topic in the Oracle Purchasing Users Guide. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 75 ONLY. COPYING ekit MATERIALS FROM THIS

96 Creating Global Contract Agreements Creating Global Contract Agreements Global agreements are negotiated for enterprise-wide pricing. The global agreement can be assigned to the organizations which are allowed to use them using Enable Organizations in the Tools menu. The organizations available to enable in this window are determined by the supplier sites for the agreement s assigned supplier. Important Setup Considerations Purchasing supplier sites must be defined for each operating unit required. Intercompany transaction flows must be created for intercompany invoicing to take place. Note that global contract purchase agreements are part of the Center-Led Procurement feature set in Oracle Purchasing which was discussed earlier in this module. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 76 ONLY. COPYING ekit MATERIALS FROM THIS

97 Agenda Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 77 ONLY. COPYING ekit MATERIALS FROM THIS

98 When to Use a Planned Purchase Order When to Use a Planned Purchase Order You create a planned purchase order when you what to establish a long term agreement with a single source supplier with a commitment to buy goods or services. Planned purchase orders include tentative delivery schedules and accounting distributions. You then create scheduled releases against the planned purchase order to actually order the goods or services. A planned purchase order is a type of purchase order you issue before you order actual delivery of goods and services for specific dates and locations. You normally enter a planned purchase order to specify goods you want to order and tentatively schedule delivery of the goods. You later enter a shipment release against the planned purchase order when you actually want to order the goods. A scheduled release is issued against a planned purchase order to place the actual order. You can also change the accounting distributions on each release and the system will reverse the encumbrance for the planned purchase order and create a new encumbrance for the release. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 78 ONLY. COPYING ekit MATERIALS FROM THIS

99 Planned and standard purchase orders are the same in overall document content with two exceptions. You cannot associate a contract with a planned purchase order line. You can specify agreement controls for planned purchase orders. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 79 ONLY. COPYING ekit MATERIALS FROM THIS

100 Components of a Planned Purchase Order Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 80 ONLY. COPYING ekit MATERIALS FROM THIS

101 Planned Purchase Order Information Entered Planned Purchase Order Information Entered Purchasing Responsibility (N) Purchase Orders > Purchase Orders Most of the fields that have already been discussed during the creation of other types of purchase orders apply to the planned purchase order. The primary difference from a standard purchase order is that a delivery schedule is entered and the actual purchase order is created by running the Create Releases process. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 81 ONLY. COPYING ekit MATERIALS FROM THIS

102 Agenda Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 82 ONLY. COPYING ekit MATERIALS FROM THIS

103 Purchase Order Inquiry Purchase Order Inquiry 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 Purchasing Responsibility (N) Purchase Orders > Purchase Order Summary 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. See the Oracle Applications User s Guide for more detail about folder technology. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 83 ONLY. COPYING ekit MATERIALS FROM THIS

104 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 Purchasing Responsibility (N) Purchase Orders > Purchase Orders You can look for purchase order information using either query or find functionality. Note: The Professional Buyer s Work Center, described in a later topic in this course, also contains features to help you perform inquiries. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 84 ONLY. COPYING ekit MATERIALS FROM THIS

105 Modifying Purchase Orders Modifying Purchase Orders 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, Oracle Purchasing may increment the revision number on the document. Note: Additional information regarding methods of modifying Purchase Orders is described in the Professional Buyer s Work Center topic featured later in this course. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 85 ONLY. COPYING ekit MATERIALS FROM THIS

106 Printing Purchase Orders Printing Purchase Orders 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. Implementers 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. Methods of purchasing document delivery will be discussed later in the Understand setup options topic. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 86 ONLY. COPYING ekit MATERIALS FROM THIS

107 Creating Purchase Order Revisions Creating Purchase Order Revisions Purchase order revisions are created through archiving which is the process of recording all historical versions of approved purchase orders. Oracle Purchasing automatically archives a purchase order when you approve it for the first time. Oracle 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 Oracle 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. Oracle 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 is discussed in more detail in the Document Security, Routing and Approval course module. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 87 ONLY. COPYING ekit MATERIALS FROM THIS

108 Document Publishing Document Publishing If you have Oracle XML Publisher installed, the Oracle Advanced Procurement Suite allows you to use layout templates created in Microsoft RTF and Adobe PDF formats. To begin the process: 1. Create a layout for the purchasing document, using the document editor of your choice. 2. Save the layout in either XSL-FO (Extensible Stylesheet Language Formatting Objects), RTF (Rich Text Format), or PDF format. 3. Upload the layout to Oracle XML Publisher. Then, to use the layout: 1. Create a purchasing document. If Oracle Procurement Contracts is enabled, optionally add contract terms and conditions. 2. Navigate to the request submission form and search for PO Output for Communication. 3. Specify the purchase order number and Purchase Order Layout. If Oracle Procurement Contracts is enabled, specify the Contract Terms Layout. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 88 ONLY. COPYING ekit MATERIALS FROM THIS

109 4. Submit the request. 5. The output of the request will be an Adobe PDF formatted document in the layout specified at run time. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 89 ONLY. COPYING ekit MATERIALS FROM THIS

110 Archiving Purchase Orders Archiving Purchase Orders 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 Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 90 ONLY. COPYING ekit MATERIALS FROM THIS

111 Purchase Order Statuses - Typical Cycle Purchase Order Statuses - Typical Cycle 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 Purchasing Responsibility (N) Purchase Orders > Purchase Orders (N) Purchase Orders > Purchase Order Summary In Oracle Purchasing, 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 91 ONLY. COPYING ekit MATERIALS FROM THIS

112 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: Oracle 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, Oracle Purchasing automatically closes the line. When all lines for a given header are closed, Purchasing automatically closes the document. Oracle 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, Oracle 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, Oracle 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: Oracle 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, Oracle 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 92 ONLY. COPYING ekit MATERIALS FROM THIS

113 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, Oracle 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 93 ONLY. COPYING ekit MATERIALS FROM THIS

114 Entering Purchase Order Acceptances Entering Purchase Orders Acceptances Purchasing Responsibility (N) Purchase Orders > Purchase Orders (M) Tools > Acceptances (N) Purchase Orders > Purchase Order Summary (M) Tools > 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 or the Purchase Order Summary window, you can access the window to enter acceptances. Suppliers can enter their own acceptances using Oracle 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 94 ONLY. COPYING ekit MATERIALS FROM THIS

115 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. Note: You can define additional acceptance types through the Purchasing Lookup Codes. esignatures: Oracle Procurement Contracts enables you and your supplier to verify signatures electronically. This information can be view from the Acceptances window or from Oracle isupplier Portal. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 95 ONLY. COPYING ekit MATERIALS FROM THIS

116 Workflow Notifications Workflow Notifications 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 96 ONLY. COPYING ekit MATERIALS FROM THIS

117 Copying Purchase Orders Copying Purchase Orders 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: 1. Query the document you want to copy from the Purchase Orders, Purchase Order Summary, or Quotations windows. 2. Choose Copy Document from the Tools menu. 3. Select an eligible To Document Type. 4. 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 97 ONLY. COPYING ekit MATERIALS FROM THIS

118 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. See the Copy Purchase Orders topic in the Oracle Purchasing User s Guide for a complete list of documents. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 98 ONLY. COPYING ekit MATERIALS FROM THIS

119 Agenda Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 99 ONLY. COPYING ekit MATERIALS FROM THIS

120 Purchase Document Interfaces Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 100 ONLY. COPYING ekit MATERIALS FROM THIS

121 Purchasing Documents Open Interface Purchasing Documents Open Interface Load (1) The Purchasing Documents Open Interface receives price/sales catalog information and responses to requests for quotation (RFQs) electronically from suppliers in the form of blanket purchase agreement lines or catalog quotations. One way to import catalog data into the Purchasing Documents Open Interface, and finally into Oracle Purchasing, is through Oracle e- Commerce Gateway. You can also import standard purchase orders through the Purchasing Documents Open Interface. This requires that you load the interface tables using a program that you create. The tables to be loaded are; PO_HEADERS_INTERFACE, PO_LINES_INTERFACE, and PO_DISTRIBUTIONS_INTERFACE. For details see the Oracle Manufacturing APIs and Open Interfaces Manual. Process (2) Run the Purchasing Documents Open Interface program to validate and import it into Oracle Purchasing. The Purchasing Documents Open Interface program can be run from within Oracle e-commerce Gateway when you choose Import Program from the e-commerce Gateway Process menu. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 101 ONLY. COPYING ekit MATERIALS FROM THIS

122 Or you can run this program separately, from within Oracle Purchasing. If you run it from within Oracle Purchasing, you need to first import the price/sales catalog information into the interface tables, using Oracle e-commerce Gateway or a custom import program. Then use this process to import the information into Oracle Purchasing. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 102 ONLY. COPYING ekit MATERIALS FROM THIS

123 Purchase Document Import Validation For details see the Oracle Manufacturing APIs and Open Interfaces Manual. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 103 ONLY. COPYING ekit MATERIALS FROM THIS

124 Purchasing Open Interface Tables Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 104 ONLY. COPYING ekit MATERIALS FROM THIS

125 Purchasing APIs Purchasing APIs Oracle Purchasing provides public APIs that are available to your programs to use for specific functions. For complete details and sample code see the Oracle Manufacturing APIs and Open Interfaces Manual. Purchasing Order Change API This API enables you to record supplier acceptance or rejection and update quantity, price, or promise date on standard purchase orders or releases that exist in Oracle Purchasing. It performs all the necessary validation before updating the changes. The names of these APIs are PO_CHANGE_API1_S.record_acceptance and PO_CHANGE_API1_S.update_po. Cancel Purchase Order API This API provides the ability to cancel Oracle Purchasing documents directly from your program. The name of this API is PO_Document_Control_PUB.control_document. Custom Pricing API This API provide the ability to perform custom pricing on Oracle Purchasing documents directly. There are three separate APIs that are used to perform custom pricing: Custom Pricing Date API, Custom Requisition Pricing API, and Custom PO/Release Pricing API. The Custom Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 105 ONLY. COPYING ekit MATERIALS FROM THIS

126 Pricing Date API is called first to establish a pricing date for the other calls. The names of the APIs are: PO_Custom_Price_PUB.get_custom_price_date PO_Custom_Price_PUB.get_custom_req_price PO_Custom_Price_PUB.get_custom_po_price Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 106 ONLY. COPYING ekit MATERIALS FROM THIS

127 Agenda Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 107 ONLY. COPYING ekit MATERIALS FROM THIS

128 Purchase Order Reports Purchase Order 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 Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 108 ONLY. COPYING ekit MATERIALS FROM THIS

129 Purchase Order Reports Purchase Order Reports 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 Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 109 ONLY. COPYING ekit MATERIALS FROM THIS

130 Purchase Order Reports Purchase Order Reports Purchase Order Distribution Detail Report: Review accounting distributions for purchase orders. 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. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 110 ONLY. COPYING ekit MATERIALS FROM THIS

131 Agenda Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 111 ONLY. COPYING ekit MATERIALS FROM THIS

132 Important Purchasing Options Important Purchasing Options Purchasing Responsibility (N) > Setup > Organizations > Purchasing Options Control Tab Price Tolerance %/Enforce Price Tolerance: This is the percentage by which the autocreated purchase order line price cannot exceed the requisition line price. If you select Enforce Price Tolerance, you can create, but not approve, purchase orders for which this tolerance is exceeded. There is no restriction on how much a price can decrease. Price Tolerance Amount/Enforce Price Tolerance Amount: This is the dollar amount by which the autocreated purchase order line price cannot exceed the requisition line price. If you select Enforce Price Tolerance Amount, you can create, but not approve, purchase orders for which this tolerance is exceeded. There is no restriction on how much a price can decrease. Note: If you set both price tolerance percentage and amount values, the system will apply the more restrictive of the two. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 112 ONLY. COPYING ekit MATERIALS FROM THIS

133 Cancel Requisitions: The Cancel Requisitions options apply only to requisitions from which purchase orders were autocreated. Select one of the following: Always - When canceling the purchase order, Oracle Purchasing also cancels the requisition. Never - When canceling the purchase order, Oracle Purchasing does not cancel the requisition, so it is again available for inclusion on a purchase order. Optional - When canceling the purchase order, you are given the option to cancel the requisition. Enforce Buyer Name: Select Enforce Buyer Name to enforce entry of only your name as the buyer on purchase orders. Otherwise, you can enter the name of any active buyer. PO Output Format: Select PDF to have purchase orders generated in Adobe PDF format or Text to have them printed in the standard format. Default Tabbed Region Minimum Release Amount: Enter the minimum dollar amount that you want to issue on any individual release. Price Break Type: Select the Price Break Type that defaults on blanket purchase orders: Cumulative - Price breaks apply to the cumulative quantity on all release shipments for the item. Non-cumulative - Price breaks apply to quantities on individual release shipments for the item. Numbering Tabbed Region: PO Number - Entry/Type/Next Number Select the Number Entry method for purchase orders: Automatic - Oracle Purchasing automatically assigns a unique sequential number to each document when you create the document. Manual - You provide a document number manually when you enter the document. You can change the method of entering document numbers at any time. If you originally allow manual entry and switch to automatic entry, make sure to enter a Next Number that is higher than the highest number you assigned manually. Select the Number Type you want Oracle Purchasing to use purchase order numbers: Numeric or Alphanumeric. If you choose Manual document number entry, you can choose numeric or alphanumeric numbers. You can change the document number type from Numeric to Alphanumeric whenever you want. You can change the document number type from Alphanumeric to Numeric only if all your current document numbers are numeric. Enter a value that you want Oracle Purchasing to start with when it generates the unique sequential document numbers if you choose Automatic document number entry. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 113 ONLY. COPYING ekit MATERIALS FROM THIS

134 Important Profile Options Profile Options System Administrator Responsibility (N) Profiles > System PO: Price Tolerance (%) for Catalog Updates A value in this profile option specifies the maximum percentage increase allowed to an item s price when your supplier sends updated price/sales catalog information through the Purchasing Documents Open Interface. If the tolerance is exceeded, the buyer receives a notification and can accept or reject the increases in the Exceeded Price Tolerances window. PO: Archive Catalog on Approval Indicates whether Oracle Purchasing archives blanket purchase agreements in a price/sales catalog submission upon approval. You need to consider this profile option only if you receive price/sales catalog submissions from your suppliers through the Purchasing Documents Open Interface. This profile option comes into effect only if Archive on Approval is chosen in the Document Types window in Oracle Purchasing and you import the documents with a status of Approved. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 114 ONLY. COPYING ekit MATERIALS FROM THIS

135 PO: Change Supplier Site Indicates whether you can change the supplier site on approved purchase orders. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 115 ONLY. COPYING ekit MATERIALS FROM THIS

136 PO Communication Profile Options PO Communication Profile Options System Administrator Responsibility (N) Profiles > System PO: Secondary Address This profile option allows you to send a copy of the PO to your company. If you wish to resend the , you will need to log into this secondary account and resend it from there. PO: In File Path Enter the absolute path of the directory where the generic terms and conditions file is placed. PO: Terms and Conditions File Name Enter the name of the generic terms and condition file that will be printed on your purchase documents. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 116 ONLY. COPYING ekit MATERIALS FROM THIS

137 Other Setups Other Setups Purchasing Responsibility (N) > Setup Several setups are accessed directly through the navigation setup menu. These include defining buyers, hazard classes and UN numbers. Buyers Use the Buyers window to define and maintain your buyers. Buyers can review all requisitions using the Requisitions window. Only buyers can autocreate purchasing documents. While you don t have to be a buyer to create a purchase order, only buyers can approve them. Enter the Name of an employee who you want to define as a buyer. Buyers must be defined as employees in Oracle Human Resources. Enter the default purchasing Category of the goods the buyer typically orders. Enter the name of the ship-to location for which the buyer typically creates purchase orders. Oracle Purchasing defaults this value when you AutoCreate documents. You can also enter the start and stop dates that the specified employee performs the buyer responsibility. As the buyer staff changes over time, you can update the buyer names on purchasing documents using the Mass Update Buyer Name process. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 117 ONLY. COPYING ekit MATERIALS FROM THIS

138 Hazard Classes Use this window to define codes for different classes of hazardous materials. You provide the class name, description, and the date after which the class is no longer active. You can assign a hazard class to multiple UN numbers to identify hazardous items. Oracle Purchasing automatically copies hazardous material information onto your documents and prints this information on your purchase orders, RFQs, and Receipt Travelers. Oracle Purchasing automatically displays hazardous material information for your receivers. UN Numbers Use this window to define United Nations identification numbers for hazardous materials. You can associate a hazard class with multiple identification numbers. You can also assign an identification number and a hazard class to each item you define. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 118 ONLY. COPYING ekit MATERIALS FROM THIS

139 Transaction Delivery Setup Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 119 ONLY. COPYING ekit MATERIALS FROM THIS

140 Printed Purchase Orders Printed Purchase Orders Purchasing Responsibility (N) > Setup > Organizations > Purchasing Options (T) Control Standard Text Text is the standard format for printed purchase orders. Normally you would purchase preprinted forms from an Oracle recommended print vendor with your company information. If needed, the standard layout can be customized using the Oracle Reports tool. This customization should be done before ordering the pre-printed forms. Another customized way of producing a pre-printed form look is to use a design template for your laser printer. PDF Output The PDF purchase order can be previewed from the Purchase Order and Purchase Order Summary windows, from Approval Notifications, and prior revisions from the PO Change History page. Suppliers can use a link in Oracle isupplier Portal to view and print the PDF document. If you have enabled the PDF output; the purchase order is automatically communicated following approval, can be communicated to the supplier using a Tools menu Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 120 ONLY. COPYING ekit MATERIALS FROM THIS

141 option from the Purchase Order Summary window, or sent to a printer by running the PO Output for Communication process. The format templates are created using using Oracle XML Publisher. See the Oracle XML Publisher User s Guide. The template name is then specified in the Oracle Purchasing Document Types window. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 121 ONLY. COPYING ekit MATERIALS FROM THIS

142 Purchasing Document Fax Setup Overview Purchasing Document Fax Setup Overview Purchase orders and blanket purchase agreements can be faxed directly to the supplier. Oracle Purchasing communicates the document to the third party fax server in a format called Fax Command Language (FCL). The fax server then converts the FCL document into standard fax signals which are transmitted over a phone line to the supplier s fax machine. Setup in Oracle Applications 1. Install the third party fax server software (depending on the product this could go on a standalone PC or the same hardware as the applications server). 2. Create an Oracle Applications printer for the fax server. (See the Oracle System Administrators Guide.) Note: Refer to the third party fax server provider s installation and administration documents for details. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 122 ONLY. COPYING ekit MATERIALS FROM THIS

143 Setup in Oracle Purchasing 1. Set the supplier site Supplier Notification Method to Fax. 2. In the Communication region for the supplier site enter the Fax Area Code and Number. 3. Save your changes to the supplier site. Refer to the Oracle Payables User s Guide for details. Use in Oracle Applications Create your purchasing document and select Approve. While in the Approval window note that the Fax checkbox is checked and your supplier site fax number has defaulted in. You can override the fax number or change the method of supplier notification. Once your document has been approved, workflow will direct your document to the fax server for delivery. Refer to the Oracle Purchasing User s Guide for details. Third Party Fax Server Partners Basically any fax server that can integrate with Oracle Applications and provides FCL support should work. Since FCL is a proprietary language created by RightFax, then RightFax Connector for Oracle E-Business Suite would be a logical place to start. Check with the Oracle Partners division for other providers. Although using FCL and third party fax servers have the advantage of convenience and the ability to create custom forms, there are custom solutions using the standard print stream as well. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 123 ONLY. COPYING ekit MATERIALS FROM THIS

144 Purchasing Document Setup Overview Purchasing Document Setup Overview Purchase orders and blanket purchase agreements can be ed directly to the supplier. Oracle Notification Workflow mailer communicates the document to the supplier in an HTML (HyperText Markup Language) format. Setup in Oracle Applications 1. Configure the Notification Workflow for your site. 2. Set profile options PO:Secondary address, PO: In File Path, and PO:Terms and Conditions File name as required for your business processes (see the Oracle Purchasing User s Guide for details). 3. Start the Workflow Mailer. Refer to the Oracle Workflow Guide for workflow details. Setup in Oracle Purchasing 1. Set the supplier site Supplier Notification Method to In the Communication region for the supplier site enter the address. 3. Save your changes to the supplier site. Refer to the Oracle Payables User s Guide for details. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 124 ONLY. COPYING ekit MATERIALS FROM THIS

145 Use in Oracle Purchasing Create your purchasing document and select Approve. While in the Approval window note that the checkbox is checked and your supplier site address has defaulted in. You can override the address or change the method of supplier notification. Once your document has been approved, workflow will direct your document to the Workflow mailer for delivery. Refer to the Oracle Purchasing User s Guide for details. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 125 ONLY. COPYING ekit MATERIALS FROM THIS

146 Oracle e-commerce Gateway Overview e-commerce Gateway Overview Oracle e-commerce Gateway provides a single application to application integration solution that works with Oracle Applications Financial, Manufacturing, and Supply Chain suite of products. It operates in cooperation with workflow to extract the Oracle Application s transaction and convert that transaction to an EDI standard flat file that is delivered to the EDI translator. ecommerce Gateway Concepts Trading Partner: The trading partner is the supplier you are doing business with and is the key link between Oracle e-commerce Gateway and Oracle Purchasing. EDI Translator: The Translator is a third-party software application designed to transform a formatted file into any other format. Traditionally, it transforms proprietary formats to EDI transactions according to the designated standard (such as X12 and EDIFACT). Value Added Network: Value Added Network is a secure network for transmission of EDI transactions. This is typically a third party network, but could also be the internet (with appropriate security) or a direct electronic connection between the enterprises. Code Conversion: The Oracle e-commerce Gateway code conversion function provides a method by which codes used by Trading Partners and electronic data standards can be Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 126 ONLY. COPYING ekit MATERIALS FROM THIS

147 converted from and to codes used in Oracle Applications. A simple example is units of measure. The buying organization uses each and the supplier uses Ea. This conversion can be defined in the gateway to be handled automatically. Setup and Use in Oracle Purchasing 1. Oracle e-commerce Gateway must be implemented and working. 2. The supplier must be defined as a trading partner in e-commerce Gateway. This is done from the e-commerce Gateway Administrator responsibility, Setup > Trading Partners. See the Oracle e-commerce Gateway Implementation Manual for complete details. 3. Optionally define any code conversions you and/or your supplier may require. This is done from the e-commerce Gateway Administrator responsibility, Setup > Code Conversion. See the Oracle e-commerce Gateway Implementation Manual for complete details. 4. In the Setup > Purchasing > Document Types window, set the Archive Method to Archive on Approve for each document type you want EDI enabled. 5. In the Supplier > Sites (T) EDI window set the EDI Location to the code for the supplier site (usually the DUNS number or DUNS + 4). 6. Now when you approve your purchasing document the EDI box will be checked and your document will be sent to the supplier by way of the Oracle e-commerce Gateway. Note: Documents sent by e-commerce Gateway cannot be printed, ed, faxed, or sent by XML from the Approval window. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 127 ONLY. COPYING ekit MATERIALS FROM THIS

148 Purchase Order EDI Transactions Purchase Order EDI Transactions EDI (Electronic Data Interchange) transactions are handled by Oracle e-commerce Gateway. This slide identifies the purchase order related transactions and the next provides a high level overview of their setup. Purchase Order (850/ORDERS) and Purchase Order Change (860/ORDCHG) These transactions enable your organization to send purchase orders and purchase order changes to the supplier electronically. Price/Sales Catalogue (832/PRICAT) This transaction provides suppliers with the ability to create and maintain pricing within Oracle Purchasing. Specifically the supplier can create and update blanket purchase agreements. Response to Request for Quotation (843/QUOTES) This transaction provides suppliers with the ability to respond to request for quotations (RFQ) electronically. For details of the actual content of these transactions see the Oracle e-commerce Gateway Implementation Guide and see there are spreadsheet layouts available from Oracle MetaLink. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 128 ONLY. COPYING ekit MATERIALS FROM THIS

149 Oracle XML Gateway Overview Oracle XML Gateway Overview Oracle XML Gateway supports both Business-to-Business (B2B) initiatives such as communicating business documents and participating in industry exchanges in addition to Application-to-Application (A2A) initiatives such as data integration with legacy and disparate systems. It operates in cooperation with workflow to extract the Oracle Application s transaction and convert that transaction to an OAG standard XML file. XML Gateway Concepts Trading Partner: The trading partner is the supplier you are doing business with and is the key link between Oracle XML Gateway and Oracle Purchasing. Code Conversion: The Oracle XML Gateway code conversion function provides a method by which codes used by Trading Partners and electronic data standards can be converted from and to codes used in Oracle Applications. Transport Agent/Layer: Oracle Transport Agent (OTA) is a transport mechanism used to send and receive XML documents in Oracle Applications. It provides guaranteed XML message delivery, security, and message auditing. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 129 ONLY. COPYING ekit MATERIALS FROM THIS

150 Setup and Use in Oracle Purchasing 1. Oracle XML Gateway and Oracle Transport Agent must be implemented and working. 2. Workflow Agent Listener must be running. 3. The supplier/supplier site must be defined as a trading partner in XML Gateway. This is done from the XML Gateway responsibility, Define Trading Partners. 4. If you are using a hub like Oracle Exchange you must define the hub in XML Gateway. Both the buyer and supplier must be set up on the hub. 5. Optionally define any code conversions you and/or your supplier may require. This is done from the XML Gateway responsibility, Define Code Conversion. 6. Now when you approve your purchasing document the XML box will be checked and your document will be sent to the supplier by way of the Oracle XML Gateway. Note: Documents sent by XML Gateway cannot be printed, ed, faxed, or sent by EDI from the Approval window. See the Oracle Purchasing XML Transaction Delivery Setup Guide for complete details on these setup steps, as well as the file layouts (DTD) and a sample XML transaction. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 130 ONLY. COPYING ekit MATERIALS FROM THIS

151 Purchase Order XML Transactions Purchase Order XML Transactions XML (extensible Markup Language)transactions are handled by Oracle XML Gateway. This slide identifies the purchase order related transactions and the next provides a high level overview of their setup. Purchase Order and Release against Blanket PO (PROCESS_PO_007) Using XML to transmit Oracle Purchasing purchase orders enables a buyer to accurately and securely send purchase order information to the supplier. Purchase Order Change (CHANGE_PO_006) Buyers can also send information relating to changes made to an existing purchase order using XML. For details of the actual content of these transactions see the Oracle Purchasing XML Transaction Delivery Setup Guide. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 131 ONLY. COPYING ekit MATERIALS FROM THIS

152 Retroactive Price Changes Retroactive Price Changes Prices for items on purchase agreements can change over the effective period of an agreement as a result of ongoing negotiations between the buyer and the supplier. In fact, it is common practice in certain industries to initiate and execute against an agreement with an interim price. A firm price may get finalized several months into the life of the agreement. In these scenarios it is possible that the updated price is applicable retroactively. Oracle Purchasing allows buyers to make price changes and have automatic updates to orders (standard orders and blanket releases) referencing the modified agreements even if there has been receiving and invoicing activities against them. Additionally, for orders that have been received against, Oracle Purchasing automatically adjusts the accrued liability to reflect the latest pricing. Finally, for orders that have been invoiced, Oracle Purchasing automatically generates Price Adjustment Invoices in Oracle Payables. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 132 ONLY. COPYING ekit MATERIALS FROM THIS

153 Agenda Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 133 ONLY. COPYING ekit MATERIALS FROM THIS

154 Responsibility for Purchase Order Entry and Maintenance Responsibility for Purchase Order Entry and Maintenance You must determine where the operational responsibility for purchase order entry and maintenance should be assigned. The level of staffing requirements for this function must be determined based on volume and effort. Definition of the buyer responsibility, as well as other purchasing responsibilities, should be reviewed for good internal control policies/practices and proper segregation of duties. You may wish to consult with your internal or external auditors prior to making a final decision on these issues. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 134 ONLY. COPYING ekit MATERIALS FROM THIS

155 Purchase Order Integration Issues Purchase Order Integration Issues Remember to include all interested parties in the development of purchase order processes. Depending on the scope of your purchasing implementation, the following departments may need to be involved in the process - Purchasing, Inventory, Planning, Receiving, Payables, Assets and Accounting. This will ensure that the organizational goals are considered above individual unit goals. Departmental requisitioners should also be involved in the purchase order process development. Many of the issues surrounding purchase orders are first encountered when discussing requisitions. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 135 ONLY. COPYING ekit MATERIALS FROM THIS

156 Creating Purchase Orders and Releases Creating Purchase Orders and Releases Oracle Purchasing provides various ways to create purchase orders as follows: Manually based on paper requisitions Autocreate from on-line requisitions Automatically through either Requisition Import or Create Releases Import through the Purchasing Documents Open Interface It is typical to allow Oracle Purchasing to combine lines from multiple requisitions onto a single purchase order or release. This combining should result in fewer purchasing documents issued, in fewer but more key suppliers being used, better pricing due to volume discounts, and reduce overall administrative costs. Some organizations are concerned that because different departments requisition lines are on the same purchase order or release, that requisitioners will be confused about which lines are theirs. You may also be concerned that requisitioners will be confused if all of the lines from a particular requisition aren t all on the same purchase order or release. Remember that typically, requisitioners don t view purchase orders. Instead, requisitioners should view updates made to their requisitions detailing for each shipment which purchase order and line number that line was actually ordered on and with which supplier. For example, a decision to Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 136 ONLY. COPYING ekit MATERIALS FROM THIS

157 require each requisition be placed fully on a single purchase order or release, would result in three purchasing documents being created rather than two. If this organization had an estimated processing cost of $50 per purchasing document, theoretically administrative costs have increased as a result of this decision. Furthermore, if the pens had been negotiated with a non-cumulative break price for a quantity of 10, then the unit prices on both individual requisitions would be higher than if they d been combined onto a single document. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 137 ONLY. COPYING ekit MATERIALS FROM THIS

158 Purchase Order Numbering Options Purchase Order Numbering Options You should be careful when using manual numbering that the decision doesn t result in the need to create an off-line, manual, paper-based purchase order number tracking mechanism. You should also be careful of adding intelligence to the purchase order number by embedding information already kept by the system elsewhere. There is no automated check in the system to ensure the information is synchronized in both places. For example, a company may prefix their purchase order numbers with the buyer s initials. Since there is already a field to hold the buyer s name, the possibility exists for the values to conflict. Additionally, as the buyer staff changes, you would still have purchase orders with a number prefixed with the initials of a previous buyer. There would also be no reporting capability against that piece of the purchase order number. When switching from manual to automatic numbering, you should ensure that the Next Automatic Number to be assigned has been reset to a number larger than the largest assigned number. For example, if the highest number assigned is 2115, set the next automatic number to at least 2116, but maybe even to Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 138 ONLY. COPYING ekit MATERIALS FROM THIS

159 Purchase Order Conversion Methodology Purchase Order Conversion Methodology Purchasing Documents Open Interface This interface allows you to convert purchasing documents from your current non-oracle system into Oracle Purchasing. You may use this interface on an on-going basis if you don t use Oracle Purchasing but want to enter purchase documents for purposes of invoice matching or other reasons. Which purchase orders to convert You should review your current purchase orders to determine whether all purchase orders, all purchase orders in the last 24 months or only open purchase orders will be converted. Determine conversion method Dependent on the number of conversions overall, record volumes, resources available and time, you may need to determine which conversions will be automated and which will be manual. Conversion of 3,000 records may be automated for one user, but manual for another. Determine data cleanup requirements You will need to review purchase orders that will be converted to determine if any data cleansing needs to be done. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 139 ONLY. COPYING ekit MATERIALS FROM THIS

160 Determine conversion reconciliation method and reports needed You need to review reports available to ensure that they can support reconciliation of the purchase orders converted through the interface. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 140 ONLY. COPYING ekit MATERIALS FROM THIS

161 Electronic Transaction Delivery Electronic Transaction Delivery All of the following methods provide automatic delivery of purchasing documents to the supplier and should result in a lower cost per document for delivery. Fax Considerations Using integrated third party solution enables automatic document delivery. Third party solution may provide other electronic delivery methods. Depending on volume, cost per document should be lower than manual handling. Provides an audit trail in terms of delivery confirmation. Considerations No third party solution required. No special supplier setup required. Delivery confirmation and security are issues. EDI Considerations Enables supplier update of Oracle Purchasing price catalogs. Third party EDI translator and secure network required. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 141 ONLY. COPYING ekit MATERIALS FROM THIS

162 e-commerce Gateway is included in the technology stack for Oracle Applications. Supplier must have EDI capability. Delivery is secure and confirmed. XML Considerations No third party solution required (part of Oracle Applications technology stack). Supplier must have XML capability. Delivery is secure and confirmed. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 142 ONLY. COPYING ekit MATERIALS FROM THIS

163 Integrated Oracle Products Integrated Products Oracle s e-business suite of products provides many opportunities for you to streamline the purchase order process. For many organizations, the investment quickly pays for itself in increased productivity. The whole suite of self service products was created to move the responsibility for a given process to the individual closest to the process. This in turn frees up time for other individuals in the organization to concentrate on what they do best. The most commonly talked about example in procurement is the buyer. Self service applications free the buyer to analyze spend patterns and look for savings for the entire enterprise. In the past much of the buyer s time was spent reviewing purchase orders. Be sure you haven t overlooked an opportunity to enhance the purchase order process. Typically the implementation guides provide a high level introduction to the product s features. For reference see: Oracle iprocurement Implementation Guide Release, Oracle isupplier Implementation Guide Release, and Oracle Sourcing Implementation Guide Release. Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 143 ONLY. COPYING ekit MATERIALS FROM THIS

164 Summary Purchase Orders THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 9 - Page 144 ONLY. COPYING ekit MATERIALS FROM THIS

165 Automating Document Creation Chapter 10 Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 1 ONLY. COPYING ekit MATERIALS FROM THIS

166 Automating Document Creation Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 2 ONLY. COPYING ekit MATERIALS FROM THIS

167 Procurement: Purchase Orders Procurement: Purchase Orders Oracle Purchasing provides the functionality to complete the procurement portion of the Procure to Pay process. In the Oracle Procurement Suite of applications, ordering is a term generally used to indicate a business flow that results in a purchase of goods or services. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 3 ONLY. COPYING ekit MATERIALS FROM THIS

168 Objectives Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 4 ONLY. COPYING ekit MATERIALS FROM THIS

169 Agenda Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 5 ONLY. COPYING ekit MATERIALS FROM THIS

170 Creating Purchase Documents from Requisitions Creating Purchase Documents from Requisitions 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 can 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. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 6 ONLY. COPYING ekit MATERIALS FROM THIS

171 Benefits of using AutoCreate Benefits of using AutoCreate The Oracle Purchasing 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. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 7 ONLY. COPYING ekit MATERIALS FROM THIS

172 Overview of AutoCreate Overview of AutoCreate 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. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 8 ONLY. COPYING ekit MATERIALS FROM THIS

173 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. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 9 ONLY. COPYING ekit MATERIALS FROM THIS

174 Automatic Creation Mode Automatic Creation Mode 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 Oracle Purchasing to determine where to place the requisition lines on the document. You want Oracle Purchasing to combine similar requisition lines. You are creating or adding to a release. You are using Requisition grouping. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 10 ONLY. COPYING ekit MATERIALS FROM THIS

175 Find Requisition Lines Find Requisition Lines 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. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 11 ONLY. COPYING ekit MATERIALS FROM THIS

176 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 Buyers Auction (Oracle Sourcing) Sourcing RFQ (Oracle Sourcing) 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. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 12 ONLY. COPYING ekit MATERIALS FROM THIS

177 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. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 13 ONLY. COPYING ekit MATERIALS FROM THIS

178 Select Requisition Lines Select Requisition Lines Requisition lines are ordered by item, item category and then need-by date. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 14 ONLY. COPYING ekit MATERIALS FROM THIS

179 Select Automatic Creation Mode Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 15 ONLY. COPYING ekit MATERIALS FROM THIS

180 Autocreate New Document Window Autocreate New Document Window You can accept the default values in this window or make changes if appropriate. After selecting the Create button, Oracle 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. Oracle Sourcing Documents If you have Oracle Sourcing implemented and you have chosen either the Buyers Auction or Sourcing RFQ document type, then your document is created in Oracle Sourcing. You still receive an acknowledgement window similar to the slide above with the new document information. Once you select Create, a window is opened with your new document in Oracle Sourcing. The rest of your actions for this type of document then continue in Oracle Sourcing. See the Oracle Sourcing User Reference Guide of Online Help Files for Sourcing Buyers available from Metalink or the Oracle Sourcing online help for more details. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 16 ONLY. COPYING ekit MATERIALS FROM THIS

181 Manual Creation Mode Manual Creation Mode 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. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 17 ONLY. COPYING ekit MATERIALS FROM THIS

182 Add to Existing Document Add to Existing Document You can add lines to existing documents only if your security criteria allow you to modify them. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 18 ONLY. COPYING ekit MATERIALS FROM THIS

183 Modify Requisition Lines Modify Requisition Lines 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, Oracle 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, Oracle 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. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 19 ONLY. COPYING ekit MATERIALS FROM THIS

184 Return Requisition Lines Return Requisition Lines Oracle 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 Oracle Purchasing has been approved, the requisition must be returned for the original submitter to make changes to it. If the requisition was submitted using Oracle iprocurement, the requestor can use the Withdraw feature to make changes and resubmit the requisition. The Withdraw feature is not available in Oracle Purchasing and can only be used in Oracle 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. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 20 ONLY. COPYING ekit MATERIALS FROM THIS

185 Agenda Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 21 ONLY. COPYING ekit MATERIALS FROM THIS

186 Benefits of using the Create Releases Program Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 22 ONLY. COPYING ekit MATERIALS FROM THIS

187 Overview of the Create Releases Program Overview of the Create Releases Program You can minimize purchase order administrative costs by automatically creating releases for both manually entered and imported requisitions. Oracle Purchasing provides you with the features you need to satisfy the following basic needs. You should be able to: Automatically create a release when you source your items from a single supplier using a single blanket purchase agreement. Specify for each approved supplier list entry whether you want to create approved releases automatically, create releases automatically but require manual approval, or require the use of the AutoCreate Documents window to create releases. Run the Create Release process automatically as part of the requisition import process. The Create Releases program converts approved requisition lines to blanket purchase agreement releases based on the sourcing rules and approved supplier list entries. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 23 ONLY. COPYING ekit MATERIALS FROM THIS

188 Automatic Release Generation Automatic Release Generation When you are defining your approved supplier list, you define how you want your releases generated. The Create Releases program attempts to create a release only if the Release Method in the approved supplier list is set to Automatic Release or Automatic Release/Review. The following release methods are available in the approved supplier list: Automatic Release: Automatically converts approved requisition lines to approved blanket purchase releases based on the sourcing rules and Approved Supplier List entries. Automatic Release/Review: Automatically converts approved requisition lines to unapproved blanket releases. Release Using Autocreate: Either the PO Create Documents workflow is used to create a purchase document or buyers use the AutoCreate Documents window to collect, review, and optionally modify requisition lines before creating and approving purchase documents. You can define a different release generation method for each item and supplier. For frequently purchased items, you can set up Oracle Purchasing to automatically create and approve releases. For expensive or critical items, you can let Oracle Purchasing create the releases, Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 24 ONLY. COPYING ekit MATERIALS FROM THIS

189 while you review and approve them in a separate step. For infrequent purchases, your buyers can take more control by using the AutoCreate Documents window to combine requests. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 25 ONLY. COPYING ekit MATERIALS FROM THIS

190 Running the Create Releases Program Running the Create Releases Program Purchasing Responsibility (N) Reports > Run The Create Releases program and the PO Create Documents workflow can both create releases from requisitions submitted in either Oracle Purchasing or iprocurement. The Create Releases program ONLY creates Blanket Purchase Agreement releases. The Create Releases process generates releases when the following criteria are met: The requisition is sourced to an approved blanket purchase agreement that is not on hold. The approved supplier list entry for the item, supplier, and agreement must be active, and the release method must be set to Automatic Release or Automatic Release/Review in the Approved Supplier List window. The source agreement is still active and the release will not put the agreement over the amount limit. The release amount must be greater than the minimum line release amount. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 26 ONLY. COPYING ekit MATERIALS FROM THIS

191 The supplier on the source agreement is active and not on hold. The requisition line is approved and not already on a purchase order. The line type of the requisition line is quantity based. Manually submit: Manually submit the Create Releases program from the standard request submission window. Schedule: Schedule the Create Releases program to run periodically using the standard request submission window. Automatically submit after requisition import: If the PO: Release During ReqImport profile option is set to Yes, the Create Releases program will be submitted after the ReqImport program completes. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 27 ONLY. COPYING ekit MATERIALS FROM THIS

192 Create Releases Document Creation Prerequisites Create Releases Document Creation Prerequisites A blanket purchase agreement: There MUST be an approved blanket purchase agreement in place that is not expired and not overreleased. Approved supplier list entry: There MUST be an approved supplier list entry for the item. The Create Releases program does not work with commodities or one-time items (where just the category and description are specified). Release method: Along with the approved supplier list entry, the Release Method MUST be set to either Automatic Release or Automatic Release/Review. If the Release Method is left blank or set to Release using AutoCreate, the Create Releases program will not generate blanket purchase agreement releases. The release method MUST be set regardless of whether or not you have specified a source document. Sourcing Rules and Sourcing Rule Assignments: A sourcing rule with a sourcing rule assignment MUST be created for the Create Releases program to create blanket purchase agreement releases. It is not enough to supply source document information (using the supplier item catalog and selecting from a negotiated source for example) and a supplier and supplier site on the requisition when submitting requisitions manually. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 28 ONLY. COPYING ekit MATERIALS FROM THIS

193 Effect of the PO: Automatic Document Sourcing profile option: If the PO: Automatic Document Sourcing profile option is set to No, you MUST specify a blanket purchase agreement on the Source Document tab relating the the approved supplier list entry. If the PO: Automatic Document Sourcing profile option is set to Yes, you MUST have an approved supplier list entry with the release method set to Automatic Release or Automatic Release/Review. The release method cannot be blank and it cannot be set to Automatic Release using Autocreate to automatically create releases. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 29 ONLY. COPYING ekit MATERIALS FROM THIS

194 Agenda Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 30 ONLY. COPYING ekit MATERIALS FROM THIS

195 Benefits of Automatic Document Creation using Workflow Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 31 ONLY. COPYING ekit MATERIALS FROM THIS

196 Overview of Automatic Document Creation using Workflow Overview of Automatic Document Creation using Workflow Manual requisitions can come from Oracle Purchasing or Oracle iprocurement. Imported requisitions can come from a variety of sources. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 32 ONLY. COPYING ekit MATERIALS FROM THIS

197 Workflow Document Creation Overview Workflow Document Creation Overview Releases are created from blanket purchase agreements. Standard purchase orders are created from contract purchase agreements and catalog quotes (the class must be Catalog which includes Catalog Quotations and Standard Quotations, not Bid). Documents are created automatically based on approved requisitions from: Manual entry to Oracle iprocurement Manual entry to Oracle Purchasing Automatic import from other sources (Oracle and/or non-oracle systems) All documents are subject to standard approval rules. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 33 ONLY. COPYING ekit MATERIALS FROM THIS

198 Workflow Document Creation Prerequisites Workflow Document Creation Prerequisites A source document must exist in order for the PO Create Documents workflow to create a release or purchase order. If a system item is associated with the requisition line, it is not necessary to have supplier item number in order to get a standard purchase order or release automatically created. The only time an approved supplier list is required is if your source document is a blanket purchase agreement and you are using a system item. Sourcing rules are not required if the requisition originates in Oracle Purchasing or iprocurement, but can help default supplier and supplier site onto the requisition. Listed below are additional prerequisites. Blanket Purchase Agreement Approved Not expired Not overreleased Catalog Quote Status = Active Not expired Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 34 ONLY. COPYING ekit MATERIALS FROM THIS

199 Contract PO Approved Not expired Not overreleased Supplier and site on must be on requisition Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 35 ONLY. COPYING ekit MATERIALS FROM THIS

200 PO Create Documents Workflow PO Create Documents Workflow Launch process to verify req line information 1. Get requisition line info and release generation method. If no release method found, or if release method is Automatic Release/Review or Automatic Release, workflow ends and automatic creation is not done through workflow. If generation method is Release Using Autocreate and Should Workflow Create the Release = Y records are inserted into a temp table as candidates for creation on a purchase order or release. 2. Does Req Line Have Enough Information to Create Document? Valid Supplier Information? (If no, end process) Emergency Requisition? (If yes, go to Get Buyer process) Does the req line have valid source document information? (If yes, go to Get Buyer process) Does contract exist and allow creation from contract? (If yes, go to Get Buyer process) Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 36 ONLY. COPYING ekit MATERIALS FROM THIS

201 3. Get Buyer (check list and assign first buyer found) Get buyer from req line Get buyer from item Get buyer from category (in the Buyers window) Get buyer from source document Get buyer from contract 4. Create and Approve Purchase Order and Release Create purchase order or release Send notification to buyer Is automatic approval allowed? (If yes, launch doc approval process) Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 37 ONLY. COPYING ekit MATERIALS FROM THIS

202 Setting Key Workflow Attributes Setting the Key Workflow Attributes Is Automatic Creation Allowed? If this workflow attribute is set to N, the PO Create Documents workflow will not be used to automatically create purchase orders or blanket purchase agreements. The Create Releases program could still be used to generate blanket purchase agreement releases and/or the AutoCreate form could still be used to generate standard purchase orders and blanket purchase agreement releases. Should Workflow Create the Release? If this workflow attribute is set to N, the PO Create Documents workflow will not be used to create blanket purchase agreement releases. Should Contract be used to AutoCreate Doc? If this workflow attribute is set to N, contract purchase agreements will not be used as a reference document to create a standard purchase order. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 38 ONLY. COPYING ekit MATERIALS FROM THIS

203 Is Automatic Approval Allowed? If this workflow attribute is set to N, any blanket purchase agreement releases and standard purchase orders created by the PO Create Documents workflow will have to be approved in a separate step. To set key workflow attributes: 1. Install the appropriate version of Workflow Builder on your PC 2. Set up the connect string in the TNSNames.ora file 3. Start the workflow builder 4. Connect to the database 5. Choose the PO Create Documents Item Type (workflow) 6. Expand the Attributes section 7. Right click on the appropriate attribute and choose Properties 8. Set Value to Y or N 9. Save your changes Note: In order to modify workflow files, you will need to install the workflow builder and have access to the workflow. Since it is not necessary to be connected to the database to access the workflow (it can be a previously downloaded copy), only those individuals who need to access the database to save changed workflows will need to modify the tnsnames.ora to include the appropriate connect string. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 39 ONLY. COPYING ekit MATERIALS FROM THIS

204 Workflow Document Creation Summary Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 40 ONLY. COPYING ekit MATERIALS FROM THIS

205 Agenda Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 41 ONLY. COPYING ekit MATERIALS FROM THIS

206 Automatic Document Creation Profile Options Automatic Document Creation Profile Options System Administrator Responsibility (N) Profiles > System PO: Allow Buyer Override in AutoCreate Find: Yes or No indicates whether the suggested buyer (from the Enter Person window) defaulted into the Find Requisition Lines window can be cleared or overridden. The default is Yes. PO: Allow Category Override in AutoCreate Find: Yes or No indicates whether the category (from the Buyers window) defaulted into the Find Requisition Lines window can be cleared or overridden. The default is Yes. PO: AutoCreate GL Date Option: Indicates the date used on purchase orders generated by AutoCreate. The default is AutoCreate Date. AutoCreate Date: The AutoCreate Date is used as the purchase order date Requisition GL Date: The GL Date on the requisition is used as the purchase order date Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 42 ONLY. COPYING ekit MATERIALS FROM THIS

207 PO: Display the AutoCreated Document: Yes or No indicates whether Purchasing opens the appropriate transaction window (Purchase Orders window or RFQs window) and displays the created line(s) when you autocreate a document. The default is Yes. PO: Release During ReqImport: Yes or No indicates whether Purchasing can automatically create releases during the Requisition Import process. The default is No. PO: Warn if RFQ Required before AutoCreate: Yes or No indicates whether you are given a warning message and an opportunity to cancel AutoCreate if one or more of the requisition lines selected for inclusion requires an RFQ and has not been placed on an RFQ. The default is No. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 43 ONLY. COPYING ekit MATERIALS FROM THIS

208 Agenda Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 44 ONLY. COPYING ekit MATERIALS FROM THIS

209 Additional Implementation Considerations Additional Implementation Considerations Which types of purchases will require buyer intervention with the AutoCreate window? Which types of purchases can be automated with the Create Releases Program? Can low risk, high volume, routinely requisitioned items be automated? Which types of purchases can be automated with the PO Create Documents workflow? Will automatic creation be allowed? Should workflow be used to create the release? Will automatic approval be allowed? Will contract purchase agreements be used as a reference document to create standard purchase orders? Training and cutover How will end-user training be conducted? Who will conduct the training? What type of training would be most appropriate, instructor led training (ILT), one-on-one, instructor led online (ILO), online, tutor? Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 45 ONLY. COPYING ekit MATERIALS FROM THIS

210 Oracle Sourcing and Document Creation Oracle Sourcing and Document Creation You may want to consider Oracle Sourcing as part of your automatic documents creation solution. Oracle Sourcing is tightly integrated with many of the Procurement Suite applications. Requisitions consolidated in the AutoCreate window can be sourced in Oracle Sourcing. At the completion of a successful sourcing event, Oracle Purchasing will display the contract or project task reference in the purchase order or blanket agreement. Oracle Sourcing shares the E-Business Suite data model with core applications. Consequently, transaction data exists in the same database, obviating any need to migrate data between applications. Oracle Workflow - During the completion of a negotiation process in Oracle Sourcing, the Sourcing Create Auction workflow process creates purchase documents and awards placed during that negotiation process. The Oracle Sourcing user who completes the negotiation process receives a notification after the completion of this workflow. The workflow notification contains information about the number of purchase orders processed, as well as details of those which were created successfully. Oracle isupplier Portal - Suppliers accessing Oracle isupplier Portal can drill down from a purchase order to the backing sourcing document and quotation in Oracle Sourcing. Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 46 ONLY. COPYING ekit MATERIALS FROM THIS

211 Summary Automating Document Creation THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 10 - Page 47 ONLY. COPYING ekit MATERIALS FROM THIS

212 THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ONLY. COPYING ekit MATERIALS FROM THIS

213 Professional Buyer s Work Center Chapter 11 Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 1 ONLY. COPYING ekit MATERIALS FROM THIS

214 Professional Buyer s Work Center Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 2 ONLY. COPYING ekit MATERIALS FROM THIS

215 Objectives Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 3 ONLY. COPYING ekit MATERIALS FROM THIS

216 Procure to Pay: Procurement Procure to Pay: Procurement The Professional Buyer s Work Center provides a central point for buyers to manage requisitions, consolidate requisitions into purchasing documents or supplier negotiations, and manage purchasing documents. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 4 ONLY. COPYING ekit MATERIALS FROM THIS

217 Agenda Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 5 ONLY. COPYING ekit MATERIALS FROM THIS

218 What is the Professional Buyer s Work Center? What is the Professional Buyer s Work Center? As we have seen in earlier in this course, the standard forms you have used in the past for entering requisitions, purchase orders, and purchase agreements are still available in R12. You have the option to continue using those forms or to use our new web-based forms instead. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 6 ONLY. COPYING ekit MATERIALS FROM THIS

219 Business Benefits of the Buyer s Work Center Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 7 ONLY. COPYING ekit MATERIALS FROM THIS

220 Buyer s Work Center Overview Buyer s Work Center Overview Purchasing Responsibility (N) Buyer Work Center Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 8 ONLY. COPYING ekit MATERIALS FROM THIS

221 Agenda Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 9 ONLY. COPYING ekit MATERIALS FROM THIS

222 Demand Workbench and Requisition Summary Demand Workbench and Requisition Summary Purchasing Responsibility (N) Buyer Work Center > (T) Requisitions The Buyer's Work Center presents requisition demand in views that are easily customized to an individual buyer's way of working. These views allow buyers to quickly prioritize requisition demand based on a variety of factors, such as sourcing status or commodity. Buyers can aggregate demand from different organizations and consolidate it in a single document in an organization that they designate. The document could be a solicitation (auction/rfx) for bids/quotations (requires Oracle Sourcing) or a standard purchase order. Demand Workbench This page enables buyers to consolidate demand documents and create procurement documents from that demand. There are views which are predefined in the application or buyers can create views that provide results precisely fitting their procurement tasks. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 10 ONLY. COPYING ekit MATERIALS FROM THIS

223 Summary This page provides the buyer with the ability to find demand documents using very precise parameters. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 11 ONLY. COPYING ekit MATERIALS FROM THIS

224 Demand Workbench Requisition Views Demand Workbench Requisition Views Purchasing Responsibility (N) Buyer Work Center > (T) Requisitions > Demand Workbench Note that all the requisitions shown in these views are unprocessed requisitions. That is, requisitions waiting to be converted into Purchasing documents. To view requisitions in any status use the Requisition Summary page. My Requisitions Requisition lines assigned to me for all line types. My Requisitions for Goods Requisition lines assigned to me with lines that have a purchase basis of Goods. My Requisitions for Services Requisition lines assigned to me with lines that have a purchase basis of Services and Temp Labor. (Requires Oracle Services Procurement) My Requisitions Requiring an RFQ Requisition lines assigned to me that require an RFQ. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 12 ONLY. COPYING ekit MATERIALS FROM THIS

225 My Requisitions with a New Supplier Requisition lines assigned to me that were entered requiring a new supplier. My Requisitions with a Suggested Supplier Requisition lines assigned to me that were entered with a suggested supplier. My Late Requisitions Requisition lines assigned to me that are past the need by date. My Urgent Requisitions Requisition lines assigned to me that were marked urgent. Unassigned Requisitions Requisition lines not assigned to anyone. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 13 ONLY. COPYING ekit MATERIALS FROM THIS

226 Create A Personalized Requisition View Personalized Requisition Views You can create a personalized view to simplify finding those requisitions that you deal with the most. If you frequently use the same advanced searches to restrict the display of requisitions, you can also save these advanced views. These are called Personalized Views. Note that these instructions apply to personalized views for requisitions, orders, and agreements. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 14 ONLY. COPYING ekit MATERIALS FROM THIS

227 Requisition Summary Requisition Summary Purchasing Responsibility (N) Buyer Work Center > (T) Requisitions > Summary The Requisition Summary is used to review existing Requisition information. Search for all requisitions meeting your criteria: Indicate whether all selections must match or just one. Indicate whether the selection is included or excluded. Add additional search criteria. After creating your unique requisitions search you can save it for use in the Demand Workbench later. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 15 ONLY. COPYING ekit MATERIALS FROM THIS

228 Managing Requisitions in the Buyer s Work Center Managing Requisitions in the Buyer s Work Center The Buyer s Work Center offers requisition management capabilities similar to those available using AutoCreate and the Requisition Summary forms. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 16 ONLY. COPYING ekit MATERIALS FROM THIS

229 Agenda Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 17 ONLY. COPYING ekit MATERIALS FROM THIS

230 Default and Personalized Order Views Default and Personalized Order Views Purchasing Responsibility (N) Buyer Work Center > (T) Orders The Buyer s Work Center enables buyers to edit and view delivery schedules and account distributions across all order lines, thus eliminating the need to drilldown on individual lines. Buyers can use one of the seeded views to access their orders, or create their own. Personalized views enable buyers to effectively prioritize tasks and quickly drilldown to order details. A search page enables buyers to find orders in a similar fashion to the forms based summary window. My Incomplete Orders Orders assigned to me that have a status of Incomplete. My In Process Orders Orders assigned to me that have a status of In Process. My Open Orders Orders assigned to me that are not closed. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 18 ONLY. COPYING ekit MATERIALS FROM THIS

231 My Orders with Pending Change Requests Orders assigned to me that have a change request entered against it. My Orders with Rejected Acknowledgments Orders assigned to me that have acknowledgements required that were not approved. Personalized Views See the Create A Personalized Requisition View slide earlier in this topic for details. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 19 ONLY. COPYING ekit MATERIALS FROM THIS

232 Order Details Order Details Purchasing Responsibility (N) Buyer Work Center > (T) Orders [For Order Views] (N) Buyer Work Center > (T) Orders > (H) Order [For Order Details] Details of the purchase order can be quickly reviewed by selecting the Header, Lines, Schedules, or Distributions tab. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 20 ONLY. COPYING ekit MATERIALS FROM THIS

233 Document Styles Document Styles Purchasing Super User Responsibility (N) Setup > Purchasing > Document Styles Document Styles enable buying organizations to control the look and feel of the application to match the needs of different purchasing documents. Through reusable document styles, deploying organizations can enable or disable various Oracle Purchasing features, thereby simplifying the user interface. There are several benefits of using document styles: Document styles provide the ability to appropriately name purchasing documents to align more closely with the naming conventions of the deploying organization s business. The same purchasing document type (e.g. Standard Purchase Order) can assume different names based on the style applied. Some features on the purchasing document, such as price breaks in global agreements or services line types, can be enabled or disabled as part of the style setup. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 21 ONLY. COPYING ekit MATERIALS FROM THIS

234 When a purchasing document is created using a style, disabled features are hidden to simplify the user interface. For example, organizations can create a document style for a specific commodity, such as temporary labor. This document style optimizes field labels and display for that commodity, simplifying purchase order entry by hiding regions/attributes that are only relevant for goods purchases. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 22 ONLY. COPYING ekit MATERIALS FROM THIS

235 Creating a Purchase Order in the Buyer s Work Center Creating a Purchase Order in the Buyer s Work Center Purchasing Responsibility (N) Buyer Work Center > (T) Requisitions > Select Requisitions > (B) Add > Document Builder: (B) Create (N) Buyer Work Center > (T) Orders > Create: Standard Purchase Order > (B) Go There are two ways for the buyer to create standard purchase orders in the Buyer s Work Center. The first is similar to the technique used in AutoCreate, that is, to select requisitions from the Demand Workbench and click Add as though you are shopping online. Once all appropriate requisitions have been added to the Document Builder you specify the document style and click Create. The second way starts on the Orders tab by selecting Standard Purchase Order from the Create list and clicking Go. The buyer then enters the required information to complete the Header, Lines, Schedules, and Distributions tabbed regions in a manner similar to the standard Enter Purchase Order window. The main advantage to using the Buyer s Work Center is that since all tabbed information is on the same page, moving from one to the other is easier and actions such as approval can be made at any time. For simple purchase orders that do not require Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 23 ONLY. COPYING ekit MATERIALS FROM THIS

236 staged delivery schedules or multiple account distributions, buyers can quickly enter all necessary information for the orders in the header and line sections, without having to navigate to the schedules and distributions sections. Other features of the Buyer s Work Center for creating orders: When adding lines to an order, buyers can either type in the information, or use the item catalog to quickly find and select the items they need to procure. The item catalog is the same Web-based catalog available to requesters in Oracle iprocurement. If you have licensed and installed Oracle iprocurement, buyers use the advanced capabilities that are currently available to requesters, such as punching out to external sites, comparing items, and viewing the extensible attributes of an item. As an alternative to entering lines using a tabular format, buyers can create lines using a single page format. This format allows you to view all of the details for a single line, whereas the tabular format allows you to see multiple lines, but with fewer details. The single page format for lines enables buyers to provide both schedule and delivery details while entering the line. Buyers can easily view all of the schedules and distributions corresponding to all lines on the order. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 24 ONLY. COPYING ekit MATERIALS FROM THIS

237 Unified Procurement Catalog Access Unified Procurement Catalog Access Oracle Purchasing builds on the popularity of Oracle iprocurement s catalog search capabilities by offering professional buyers a similar search interface to easily find the items they need to procure. From the Demand Workbench, buyers can access the catalog and favorites lists to find negotiated alternatives to non-catalog requests. While authoring orders and agreements, buyers can use the catalog or favorites to quickly add items, thereby accelerating the document creation process. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 25 ONLY. COPYING ekit MATERIALS FROM THIS

238 Agenda Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 26 ONLY. COPYING ekit MATERIALS FROM THIS

239 Default and Personalized Agreement Views Default and Personalized Agreement Views Purchasing Responsibility (N) Buyer Work Center > (T) Agreement The Buyer s Work Center enables buyers to edit and view agreement lines in a tabular or single page format. Buyers can use one of the seeded views to access their orders, or create their own. Personalized views enable buyers to effectively prioritize tasks and quickly drilldown to order details. A search page enables buyers to find agreements in a similar fashion to the forms based summary window. My Agreements with Pending Change Requests Agreements assigned to me that have change requests entered against them. My Agreements with Rejected Acknowledgments Agreements assigned to me that have acknowledgements required that were not approved. My Expiring Agreements Agreements assigned to me that have an effective end date that has passed. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 27 ONLY. COPYING ekit MATERIALS FROM THIS

240 My Incomplete Agreements Agreements assigned to me that have a status of Incomplete. Personalized Views See the Create A Personalized Requisition View slide earlier in this Buyer s Work Center lesson for details. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 28 ONLY. COPYING ekit MATERIALS FROM THIS

241 Agreement Details Order Agreement Purchasing Responsibility (N) Buyer Work Center > (T) Agreements [For Agreement Views] (N) Buyer Work Center > (T) Agreements > (H) Agreement [For Agreement Details] Details of the agreement can be quickly reviewed by selecting the Header, Lines, or Controls tab. Document styles can be applied to agreements. As with creating purchase orders, buyers can add lines to an agreement using a tabular format, a single page format, or a combination of both. All of the agreement controls, such as operating unit access and notification controls, are accessible from the Controls tab of the agreement. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 29 ONLY. COPYING ekit MATERIALS FROM THIS

242 Creating a Purchase Agreement in the Buyer s Work Center Creating a Purchase Agreement in the Buyer s Work Center Purchasing Responsibility (N) Buyer Work Center > (T) Agreements > Create: Blanket Purchase Agreement > (B) Go Creating agreements in the Buyer s Work Center starts on the Agreements tab by selecting Blanket Purchase Agreement from the Create list and clicking Go. The buyer then enters the required information to complete the Header, Lines, and Controls tabbed regions in a manner similar to the standard Enter Purchase Order window. The main advantage to using the Buyer s Work Center is that since all tabbed information is on the same page, moving from one to the other is easier and actions such as approval can be made at any time. Other features of the Buyer s Work Center for creating orders: When adding lines to an agreement, buyers can either type in the information, or use the item catalog to quickly find and select the items they need to procure. The item catalog is the same Web-based catalog that is available to requesters in Oracle iprocurement. If you have licensed and installed Oracle iprocurement, buyers can use the advanced capabilities that are currently available to requesters, such as punching out to external sites, comparing items, and viewing the extensible attributes of an item. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 30 ONLY. COPYING ekit MATERIALS FROM THIS

243 Buyer enables the agreement for Content Authoring use by Catalog Administrators or Suppliers. Lines can be uploaded to the purchase agreement from an external source such as a supplier s catalog. As an alternative to entering lines using a tabular format, buyers can create lines using a single page format. This format allows you to view all of the details for a single line, whereas the tabular format allows you to see multiple lines, but with fewer details. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 31 ONLY. COPYING ekit MATERIALS FROM THIS

244 Uploading Blanket Agreement Lines Uploading Blanket Agreement Lines Purchasing Responsibility (N) Buyer Work Center > Agreements > Select Agreement: Update > Go > Lines > Add Lines: Via Upload > Go Global blanket agreements are the basis of the Procurement Unified Catalog as well as being one of the foundation documents for Oracle Purchasing. The benefit to the buyer is that those Content Authoring aspects built into the Buyers Work Center are available to simplify building large agreements. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 32 ONLY. COPYING ekit MATERIALS FROM THIS

245 Agenda Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 33 ONLY. COPYING ekit MATERIALS FROM THIS

246 Buyer s Work Center Profile Options Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 34 ONLY. COPYING ekit MATERIALS FROM THIS

247 Requisition Management Key Profile Options Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 35 ONLY. COPYING ekit MATERIALS FROM THIS

248 Requisition Management Key Profile Options Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 36 ONLY. COPYING ekit MATERIALS FROM THIS

249 Enhanced Catalog Access Setup Preferences Enhanced Catalog Access Setup Preferences You have the option to customize your catalog access by modifying your preferences. Using the Shopping Purchasing Preferences you can define your view into the catalog including your default store, search results per page, and your search results layout. Using the Favorites Lists Preferences you can default your default favorites list. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 37 ONLY. COPYING ekit MATERIALS FROM THIS

250 Agenda Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 38 ONLY. COPYING ekit MATERIALS FROM THIS

251 Additional Implementation Considerations Additional Implementation Considerations The catalog is a very big addition to Oracle Purchasing. Along with it comes some management considerations. For reference, see the Content Management chapter of the Oracle iprocurement Implementation and Administration Guide. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 39 ONLY. COPYING ekit MATERIALS FROM THIS

252 Oracle Sourcing and Document Creation Oracle Sourcing and Document Creation Purchasing Buyers Work Center Consolidate and pass demand documents to Sourcing Create and deliver purchase orders upon Sourcing award Sourcing Oracle Sourcing offers sophisticated negotiation capabilities that reduce the time it takes buyers to source new products and services, as well as optimize the value of existing contracts. With Oracle Sourcing you can: Utilize collaborative preparation of negotiations, meaning several employees can work on drafts of a negotiation. Conduct real-time, multi-round RFQs and auctions. Analyze negotiation responses (bids and quotes). Award business. Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 40 ONLY. COPYING ekit MATERIALS FROM THIS

253 Summary Professional Buyer s Work Center THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 11 - Page 41 ONLY. COPYING ekit MATERIALS FROM THIS

254 THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ONLY. COPYING ekit MATERIALS FROM THIS

255 Receiving Chapter 12 Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 1 ONLY. COPYING ekit MATERIALS FROM THIS

256 Receiving Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 2 ONLY. COPYING ekit MATERIALS FROM THIS

257 Procurement: Purchase Orders Procurement: Receiving Oracle Purchasing provides the functionality to complete the procurement portion of the Procure to Pay process. In the Oracle Procurement Suite of applications, ordering is a term generally used to indicate a business flow that results in a purchase of goods or services. Receipt of the goods or services is considered the final step of ordering in terms of Oracle Purchasing. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 3 ONLY. COPYING ekit MATERIALS FROM THIS

258 Objectives Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 4 ONLY. COPYING ekit MATERIALS FROM THIS

259 Agenda Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 5 ONLY. COPYING ekit MATERIALS FROM THIS

260 What is Receiving? What is Receiving? Receiving is a process that signals that the goods ordered on a purchase order have arrived. Oracle 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 6 ONLY. COPYING ekit MATERIALS FROM THIS

261 Correct receiving transaction errors. Review transaction history. Note that services ordered through Oracle Services Procurement are received automatically when contractors enter their time cards in Oracle Time and Labor. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 7 ONLY. COPYING ekit MATERIALS FROM THIS

262 Overview of Receiving Locations Overview of Receiving Locations 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 going to be received in the receiving space or its final destination. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 8 ONLY. COPYING ekit MATERIALS FROM THIS

263 Agenda Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 9 ONLY. COPYING ekit MATERIALS FROM THIS

264 Overview of Receipt Routing Overview of Receipt Routing 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. Quality results can be entered at this time. Goods that are accepted are delivered in the third step, while goods that are rejected are returned to the supplier. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 10 ONLY. COPYING ekit MATERIALS FROM THIS

265 Direct Receipt Routing Direct Receipt Routing Direct routing 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 11 ONLY. COPYING ekit MATERIALS FROM THIS

266 Standard Receipt 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 12 ONLY. COPYING ekit MATERIALS FROM THIS

267 Inspection Required 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 Oracle Quality window is opened and inspection results may be recorded based on a predefined inspection plan. Skip Lot Inspection (not shown above) Oracle Purchasing supports another form of inspection called skip lot inspection. Skip-lot inspection is an inspection technique often employed as a next step to a lot-by-lot inspection. If the QA: PO Inspection profile option is set to Quality and a skip lot plan has been set up in Oracle Quality, the inspection results can be entered during the receiving process. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 13 ONLY. COPYING ekit MATERIALS FROM THIS

268 Oracle Process Quality Integration Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 14 ONLY. COPYING ekit MATERIALS FROM THIS

269 Agenda Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 15 ONLY. COPYING ekit MATERIALS FROM THIS

270 Receipt Processing Methods Receipt Processing Methods 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 Oracle e-commerce Gateway. ASNs or ASBNs - XML Gateway: Load ASNs or ASBNs using Oracle XML Gateway. Receiving in Oracle iprocurement: You can give your employees limited ability to receive some types of items through a web browser. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 16 ONLY. COPYING ekit MATERIALS FROM THIS

271 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 17 ONLY. COPYING ekit MATERIALS FROM THIS

272 Standard Receipt Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 18 ONLY. COPYING ekit MATERIALS FROM THIS

273 Express Receipt 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 19 ONLY. COPYING ekit MATERIALS FROM THIS

274 Cascade Receipt 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 20 ONLY. COPYING ekit MATERIALS FROM THIS

275 ASNs and ASBNs ASNs and ASBNs Enter Advanced Shipment Notices (ASNs) and ASBNs using either Oracle isupplier Portal, e- Commerce Gateway, or XML Gateway. The Receiving Transaction Manager is then used to validate and import the receipt. The Enter Receipts window is used to confirm the actual receipt of goods when it arrives. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 21 ONLY. COPYING ekit MATERIALS FROM THIS

276 Desktop Receiving in iprocurement Desktop Receiving in Oracle iprocurement Receive (1): You receive the actual goods. That is, they are delivered to you. Confirm (2): You can confirm physical receipt of goods using iprocurement as well as the Enter Receipts form in Oracle 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 Oracle Purchasing or Oracle 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 THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 22 ONLY. COPYING ekit MATERIALS FROM THIS

277 Entering Expected Receipts Entering Expected Receipts 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 Oracle Order Management). When no source document can be found, the order Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 23 ONLY. COPYING ekit MATERIALS FROM THIS

278 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. You can always get printed documentation of your receiving transactions by setting the profile option RCV: Print Receipt Traveler. Note: Depot Repair can invoke receiving forms with requisite data such as requisition number and/or requisition line number, and the system directly displays the results of the search criteria, completely bypassing the 'find' screen. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 24 ONLY. COPYING ekit MATERIALS FROM THIS

279 Receipt Structure Receipt Structure Headers The receipt header contains details relating to the overall purchase receipt. There can be only one header per receipt. Lines The receipt line contains details about the goods or services you received. Receiving Tables RCV_SHIPMENT_HEADERS RCV_SHIPMENT_HEADERS stores common information about the source of your receipts or expected receipts. You group your receipts by the source type and the source of the receipt. Oracle Purchasing does not allow you to group receipts from different sources under one receipt header. RCV_SHIPMENT_LINES RCV_SHIPMENT_LINES stores information about items that have been shipped and/or received from a specific receipt source. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 25 ONLY. COPYING ekit MATERIALS FROM THIS

280 RCV_TRANSACTIONS RCV_TRANSACTIONS stores historical information about receiving transactions that you have performed. When you enter a receiving transaction and the receiving transaction processor processes your transaction, the transaction is recorded in this table. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 26 ONLY. COPYING ekit MATERIALS FROM THIS

281 Receipt Header 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; The box was wet. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 27 ONLY. COPYING ekit MATERIALS FROM THIS

282 Receipt Line 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 28 ONLY. COPYING ekit MATERIALS FROM THIS

283 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 29 ONLY. COPYING ekit MATERIALS FROM THIS

284 Control the Receiving Transaction Processor Control the Receiving Transaction Processor 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 Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 30 ONLY. COPYING ekit MATERIALS FROM THIS

285 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 THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 31 ONLY. COPYING ekit MATERIALS FROM THIS

286 Receiving Tolerances Receiving Tolerances 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 32 ONLY. COPYING ekit MATERIALS FROM THIS

287 Control Numbers Control Numbers There are various types of tracking information that Oracle Inventory supports which can be included at the time of the receipt. 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 33 ONLY. COPYING ekit MATERIALS FROM THIS

288 Sublot Control: Sublot control allows you to track the parent lot from which multiple lots were created. The parent lot may refer to the production batch that spawned the lot, but if the output of that batch varied in term of grade or other QC attributes, multiple sublots could be received into inventory. You can query lots by their parent lot and view the parent lot in the lot genealogy form. You can also grade control your lot controlled items. If sublot control is enabled for a given item, Oracle Receiving requires quantity entry of the parent lot for each new lot received. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 34 ONLY. COPYING ekit MATERIALS FROM THIS

289 Agenda Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 35 ONLY. COPYING ekit MATERIALS FROM THIS

290 Substitute Receipts Substitute Receipts When entering items in the Item Master, you have the ability to identify parts that can be substituted for each other. In Oracle Purchasing, you can receive predefined substitute items when you allow suppliers to ship alternatives to the item you order. If you are running a constrained or optimized plan in Oracle Advanced Supply Chain Planning, the substitute relationship will be recognized. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 36 ONLY. COPYING ekit MATERIALS FROM THIS

291 Unordered Receipts 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 37 ONLY. COPYING ekit MATERIALS FROM THIS

292 Overview of Returns and Corrections Overview of Returns and 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 Oracle 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 38 ONLY. COPYING ekit MATERIALS FROM THIS

293 Entering Returns 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, Oracle 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, Oracle Purchasing automatically creates both a Return to Receiving and a Return to Supplier transaction. Note: You cannot enter returns for internal shipments. Material Status Control Quality Control and product lifecycle issues may require that certain material, although stored in a ready to use state in the warehouse or production facility, may not be usable for certain applications. A lot that has not yet passed inspection should not be shipped to a customer or consumed in production. A warehouse location that has been discovered to Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 39 ONLY. COPYING ekit MATERIALS FROM THIS

294 have erroneous inventory balances should not be included in available to promise calculations. If material status control is enabled for a given lot or serial controlled item, Oracle Receiving requires quantity entry of the status for each new lot or serial received. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 40 ONLY. COPYING ekit MATERIALS FROM THIS

295 Entering Corrections Entering Corrections 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 41 ONLY. COPYING ekit MATERIALS FROM THIS

296 Comparing Returns and Corrections Comparing Returns and Corrections 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 Oracle 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 42 ONLY. COPYING ekit MATERIALS FROM THIS

297 Overview of Pay on Receipt Overview of Pay on Receipt Oracle Purchasing works in conjunction with Oracle 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 Oracle 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. See the Oracle Payables User s Guide and the Oracle Purchasing User s Guide for more information. You can set up 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. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 43 ONLY. COPYING ekit MATERIALS FROM THIS

298 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 profile 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 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. You can indicate your own prefix for Pay on Receipt invoices by setting the profile PO: ERS Invoice Number Prefix. In addition, the invoice number can include a self billing identifier which is set up in the Purchasing Options: Control window. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 44 ONLY. COPYING ekit MATERIALS FROM THIS

299 Agenda Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 45 ONLY. COPYING ekit MATERIALS FROM THIS

300 Receiving Open Interface (ROI) Receiving Open Interface (ROI) The Receiving Open Interface enables receipt processing from sources outside of Oracle Purchasing. This is typically a three step process. Load (1) The receiving open interface is used to process receipts loaded by the Oracle e-commerce Gateway, from a flat file (if bar-coding is used, for example), or ASNs and ASBNs loaded through the Oracle isupplier Portal. Process (2) After receipts are loaded, run the Receiving Transaction Processor from Oracle Purchasing to validate them. Confirm (3) Receipts may be confirmed using the Confirm Receipts window or through a notification sent by the Confirm Receipts workflow before they create accruals and can be delivered to their final destination. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 46 ONLY. COPYING ekit MATERIALS FROM THIS

301 ROI Supported Transactions ROI Supported Transactions The Receiving Open Interface does not support: Unordered receipts Movement statistics Dynamic locators Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 47 ONLY. COPYING ekit MATERIALS FROM THIS

302 Load the Receiving Open Interface Load the Receiving Open Interface Using SQL Loader or a custom created program, load your receipt information into the Receiving Open Interface. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 48 ONLY. COPYING ekit MATERIALS FROM THIS

303 Receipt Import Validation For details see the Oracle Manufacturing APIs and Open Interfaces Manual. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 49 ONLY. COPYING ekit MATERIALS FROM THIS

304 Purchasing Open Interface Tables Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 50 ONLY. COPYING ekit MATERIALS FROM THIS

305 Agenda Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 51 ONLY. COPYING ekit MATERIALS FROM THIS

306 Receiving Reports Receiving 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 Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 52 ONLY. COPYING ekit MATERIALS FROM THIS

307 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 THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 53 ONLY. COPYING ekit MATERIALS FROM THIS

308 Receiving Reports Receiving Reports 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. 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. This can be automated by setting the profile option RCV: Print Receipt Traveler. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 54 ONLY. COPYING ekit MATERIALS FROM THIS

309 Agenda Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 55 ONLY. COPYING ekit MATERIALS FROM THIS

310 Purchasing Options Purchasing Options Purchasing Responsibility (N) Setup > Organizations > Purchasing Options Control Tab Receipt Close Point: Select the Receipt Close Point, which is when the shipment is closed for receiving: Accepted (passed inspection), Delivered, or Received. Note that you need to set the receipt close tolerance percentage in the Default Options window. Default Tab Receipt Close Percent: Enter the Receipt Close tolerance percentage for your shipments. Purchasing automatically closes a shipment for receiving if it is within the receiving close tolerance at the receiving close point. Set the receiving close point in the Control Options window. You can override this option for specific items and orders. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 56 ONLY. COPYING ekit MATERIALS FROM THIS

311 Receiving Options Receiving Options Purchasing Responsibility (N) Setup > Organizations > Purchasing Options Receipt Date Days Early: Enter the maximum acceptable number of Days Early for receipts. Days Late: Enter the maximum acceptable number of Days Late for receipts. Action: Enter the Action for Receipt Date Control. This field determines how Purchasing handles receipts that are earlier or later than the allowed number of days selected above. Choose one of the following options: None - Receipts may exceed the allowed days early or late. Reject - Oracle Purchasing does not permit receipts outside the selected number of days early or late. Warning - Oracle Purchasing displays a warning message but permits receipts outside the selected number of days early or late. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 57 ONLY. COPYING ekit MATERIALS FROM THIS

312 Over Receipt Control Tolerance: Enter the maximum acceptable over-receipt Tolerance percentage. Action: Enter the Action for Overreceipt Quantity Control. This field determines how Oracle Purchasing handles receipts that exceed the quantity received tolerance. Choose one of the following options: None - Receipts may exceed the selected tolerance. Reject - Oracle Purchasing does not permit receipts that exceed the selected tolerance. Warning - Oracle Purchasing displays a warning message but permits receipts that exceed the selected tolerance. Receipt Number Options Action: Choose the Entry method for receipt numbers: Automatic: Oracle Purchasing automatically assigns a unique sequential number to each receipt when you create the receipt. Manual: You provide a receipt number manually when you enter the receipt. Oracle Purchasing numbers receipts within inventory organizations rather than across inventory organizations. So, for example, the same receipt number could be used by different inventory organizations. Note: You can change the method of entering receipt numbers at any time. If you originally allow manual entry and switch to automatic entry, make sure to enter a Next Number that is higher than the highest number you assigned manually. Type: Choose the receipt number Type you want Oracle Purchasing to use for receipt numbers: Numeric or Alphanumeric. Notes: If you choose Automatic receipt number entry, you can generate only numeric receipt numbers, but you can still import either numeric or alphanumeric values from another purchasing system. If you have any alphanumeric documents in your system, you must choose Alphanumeric as your number type, regardless of your numbering method. If you choose Manual receipt number entry, you can choose numeric or alphanumeric numbers. You can change the receipt number type from Numeric to Alphanumeric whenever you want. You can change the receipt number type from Alphanumeric to Numeric only if all your current receipt numbers are numeric. The ordering of numeric values in lists of values can appear random when you use the Alphanumeric number type. If you are using Alphanumeric numbering, consider entering all numeric values with the same number of digits. For example, if you can assume all numeric values contain six digits, you should enter the first value as Next Receipt Number: Enter the Next Receipt Number. This is the starting value you want Oracle Purchasing to use for generating unique sequential receipt numbers if you choose Automatic receipt number entry. Oracle Purchasing displays the next receipt number that will be used for a new receipt when you create the new receipt. You cannot enter this field if you choose Manual receipt number entry. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 58 ONLY. COPYING ekit MATERIALS FROM THIS

313 Receiving Options Receiving Options Purchasing Responsibility (N) Setup > Organizations > Receiving Options Miscellaneous Allow Substitute Receipts: Check Allow Substitute Receipts if you want to receive substitute items in place of ordered items. You must define substitute items in the Item Relationships window before you can receive them. You can override this option for specific suppliers, items, and orders. Allow Unordered Receipts: Check Allow Unordered Receipts if you want to receive unordered items. You can later match the unordered receipts to a purchase order. If you enable this option, you can override it for specific suppliers and items. Allow Express Transactions: Check Allow Express Transactions to enable express deliveries and receipts. Allow Cascade Transactions: Check Allow Cascade Transactions to enable cascading for receipts and receiving transactions. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 59 ONLY. COPYING ekit MATERIALS FROM THIS

314 Allow Blind Receiving: Select Allow Blind Receiving if you want blind receiving at your site. Blind receiving helps you ensure that receivers record the exact amount they receive. With blind receiving, you cannot see the quantity due or the quantity ordered for shipments when you receive items. Oracle Purchasing ignores all quantity receipt tolerances to help ensure that you can receive the exact amount the supplier shipped. Receipt Routing: Enter the default Receipt Routing that you assign goods: Direct Delivery, Standard Receipt, or Inspection Required. You can override this option at receipt time by changing the destination type for specific suppliers, items, and orders if the RCV: Allow Routing Override user profile is set to Yes. Enforce Ship-To: Enter the Enforce Ship To location option to determine whether the receiving location must be the same as the ship-to location. Choose one of the following options: None - The receiving location may differ from the ship-to location. Reject - Oracle Purchasing does not permit receipts when the receiving location differs from the ship-to location. Warning - Oracle Purchasing displays a warning message but permits receipts when the receiving location differs from the ship-to location. ASN Control Action: Choose an action for ASN Control. This field determines how Oracle Purchasing handles receiving against purchase order shipments for which an Advance Shipment Notice (ASN) exists. Choose one of the following options. None - Oracle Purchasing does not prevent or warn you when you try to receive against a purchase order shipment for which an ASN exists. Reject - Oracle Purchasing gives you a message and prevents you from receiving against a purchase order shipment for which an ASN exists. Warning - Oracle Purchasing gives you a message informing you that an ASN exists for the purchase order shipment and lets you decide whether to receive against the purchase order shipment or its ASN. Accounting Receiving Inventory Account: Enter the accounting flexfield for the default Receiving Clearing Account. Account Description: A non-updateable field with the description of the Receiving Inventory Account. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 60 ONLY. COPYING ekit MATERIALS FROM THIS

315 Receiving Profile Options Profile Options System Administrator Responsibility (N) Profiles > System PO: Enable SQL Trace for Receiving Processor Yes means that when you run the Receiving Transaction Processor, the View Log screen displays the receiving transaction pre-processor s actions, including errors, as it processed the receipt data from start to finish. Yes also generates a trace file in the database; if you need help with an error that occurs while the Receiving Transaction Processor runs, Oracle Support Services may ask you for this trace file. This profile option should be set to Yes only while debugging the Receiving Open Interface. The Receiving Open Interface validates receipt transactions from other systems and uses the Receiving Transaction Processor to import the validated data into Purchasing. RCV: Fail All ASN Lines if One Line Fails If you choose Yes, you can reject an entire Advance Shipment Notice (ASN) if any ASN line fails validation or processing. If you choose No, then you can accept an ASN if at least one ASN line is successful. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 61 ONLY. COPYING ekit MATERIALS FROM THIS

316 RCV: Print Receipt Traveler Yes or No indicates whether Oracle Purchasing automatically prints the receipt traveler when you perform a receipt or a receiving transaction, and when you match unordered receipts. You can always print receipt travelers from the Submit Requests window. RCV: Processing Mode Indicates the processing mode used after you save your work for receiving transactions. PO: ERS Aging Period The value in this profile option indicates the number of days between the receipt date and the Payment on Receipt automatic invoice creation date. For example, a value of 2 means that Payment on Receipt creates invoices only for receipts that are 2 or more days old. Any corrections or returns you make against a receipt during that 2-day period are included on the Payment on Receipt invoice. PO: ERS Invoice Number Prefix ERS- is the prefix that appears before all invoices that you create automatically using Payment on Receipt. This profile option allows you to change this prefix. For example, shortening this prefix allows extra spaces for longer packing slip or receipt numbers. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 62 ONLY. COPYING ekit MATERIALS FROM THIS

317 ASN and ASBN Electronic Receipts ASN and ASBN Electronic Receipts Your supplier can provide ASN and ASBN transactions by way of EDI (e-commerce Gateway) or the Internet (XML Gateway). Both of these require implementation of the appropriate Oracle product and setup of the supplier in the product as a trading partner. See the Setup Options topic of the Purchase Orders module for slides describing how these products integrate with Oracle Purchasing. e-commerce Gateway The EDI Location Code must be set in the Supplier Site window and match that entered in the Trading Partner window of Oracle e-commerce Gateway. Since the gateway puts the incoming transactions in the Receiving Open Interface, the Receiving Transaction Processor must be run to update Oracle Purchasing. You can then view and receive against the shipping notices using the receiving windows in Oracle Purchasing. See the Oracle e-commerce Gateway Implementation Manual for complete implementation details. XML Gateway Setup for XML shipping notices requires that both the supplier site and the trading partner have EDI Locations defined. As with purchase orders the Workflow Agent Listener must be running. Since the gateway puts the incoming transactions in the Receiving Open Interface, the Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 63 ONLY. COPYING ekit MATERIALS FROM THIS

318 Receiving Transaction Processor must be run to update Oracle Purchasing. You can then view and receive against the shipping notices using the receiving windows in Oracle Purchasing. See the Oracle Purchasing XML Transaction Delivery Setup Guide for complete implementation details. Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 64 ONLY. COPYING ekit MATERIALS FROM THIS

319 Agenda Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 65 ONLY. COPYING ekit MATERIALS FROM THIS

320 Additional Implementation Considerations Additional Implementation Considerations Receiving What methods of receiving will be most appropriate to use? Will Blind Receiving be used? How will the Receiving Transaction Processor be configured? Will key suppliers record ASNs and ASBNs using Oracle isupplier Portal? Will receiving transactions be initiated from an external system like Scanning Devices? Data mapping How will your data mapping be done? What data in legacy systems will determine values in Oracle Purchasing tables? How will additional fields be derived and loaded? Will any additional descriptive flexfields need to be set up? Data cleanup What receipts will be converted? How will you handle conversion of goods received but not delivered? Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 66 ONLY. COPYING ekit MATERIALS FROM THIS

321 Will you have automated conversion, manual data entry or both? Report Mapping Do Oracle standard reports meet your reporting requirements? Who will perform report mapping? Training and cutover How will end-user training be conducted? Who will conduct the training? Who will create training materials? Cutover What are the cutoffs for entering data into the legacy system? Whether and how long to maintain dual systems (legacy and new Oracle)? Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 67 ONLY. COPYING ekit MATERIALS FROM THIS

322 Summary Receiving THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 12 - Page 68 ONLY. COPYING ekit MATERIALS FROM THIS

323 Purchasing Accounting Chapter 13 Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 1 ONLY. COPYING ekit MATERIALS FROM THIS

324 Purchasing Accounting Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 2 ONLY. COPYING ekit MATERIALS FROM THIS

325 Objectives Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 3 ONLY. COPYING ekit MATERIALS FROM THIS

326 Agenda Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 4 ONLY. COPYING ekit MATERIALS FROM THIS

327 Overview of the Procure to Pay Period Close Overview of the Procure to Pay Period Close At the end of each accounting period, companies must complete the closing process in Payables and reconcile Payables activity for the period. You close a Payables period after you have completed accounting for transactions for the period and you have transferred the accounting entries to general ledger. A week before your first period close, create a copy of the production database and then do a dry run following your period close procedures. The dry run will help you identify problems and issues well in advance of the actual period close. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 5 ONLY. COPYING ekit MATERIALS FROM THIS

328 Close the PO Period Steps Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 6 ONLY. COPYING ekit MATERIALS FROM THIS

329 Close the PO Period Business Flow Close the PO Period Business Flow Review the Uninvoiced Receipts report The Uninvoiced Receipts Report should be run before the Receipt Accrual - Period-End process. With this report, you can review all or specific uninvoiced receipts for both period end and online accruals. Uninvoiced receipts are goods and services you have received that your supplier did not invoice yet. This report indicates exactly what you have to accrue and for what amount, and helps you analyze your receipt accrual entries. The accrual amount is the difference between the quantity received and the quantity billed multiplied by the unit price of the item. Process period-end receipt accruals Use the Receipt Accruals - Period-End process to create period-end accruals for your uninvoiced receipts for Expense distributions. Purchasing creates an accrual journal entry in your general ledger for each uninvoiced receipt you choose using this window. Each time you create accrual entries for a specific uninvoiced receipt, Purchasing marks this receipt as accrued and ignores it the next time you run the Receipt Accrual - Period-End process. Purchasing creates accrual entries only up to the quantity the supplier did not invoice for partially invoiced receipts. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 7 ONLY. COPYING ekit MATERIALS FROM THIS

330 Once the Receipt Accruals - Period-End process completes, use Journal Import with a source of Purchasing to import the journal into General Ledger. The journal is assigned a reversal period based on the category setup. This journal must be reversed in the subsequent period and posted. If the journal is not reversed and posted, your uninvoiced receipt liability will be overstated. Close the purchasing period Use the Control Purchasing Periods window to control the purchasing periods defined in the Accounting Calendar window. Purchasing lets you create journal entries only for transactions you enter in an open purchasing period. Use the Control Purchasing Periods window to change the status of the period to Closed. Once the Purchasing period is closed, the corresponding Payables period cannot be re-opened unless the purchasing period is re-opened. Each period in the purchasing calendar will have one of the following statuses: Closed - When you close a purchasing period, Purchasing does not allow further accruals during the period. Purchasing reverses the status of accrued purchase order lines that are set to accrue at period end so that you can accrue them in the next period if you need to. Future - Use this option if you want to open the purchasing period in the future. This option is available only when the current status is Never Opened. Never Opened - Purchasing displays this default status if you have not opened the period in the past. Open - Use this option to open the purchasing period. Permanently Closed - Use this option if you do not want to re-open the period in the future. This option is irreversible. Process remaining inventory transactions Process any remaining inventory transactions and close the inventory accounting period. Run Accrual Rebuild Reconciliation Report The Accrual Reconciliation Report can be used to analyze the balance of the perpetual receipt accrual accounts (Inventory AP Accrual account). You only need to use this report if you are accruing on receipt. For each Inventory AP Accrual account you can choose to order by item or supplier and see detailed information including the purchase order number, receipt, transaction quantity and transaction amount. You can review this report to identify the following problems in receiving, purchasing, inventory, work in process, or accounts payable transactions: Mismatches in receipt and invoice quantities Discrepancies in supplier billing Invoices matched to the wrong purchase order Receipts matched to the wrong purchase order Miscellaneous transactions from Inventory or Work in Process that use the A/P accrual accounts in error Sales tax and freight charged to the A/P accrual accounts by mistake For inquiries during the accounting period, use the Accrual Reconciliation report. Write off accrued transactions as necessary After you have researched the reported accrual balances, you can use the Accrual Write-Offs window to indicate which entries you wish to remove and write off from this report. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 8 ONLY. COPYING ekit MATERIALS FROM THIS

331 Create a manual journal entry for write-offs You can use the Accrual Write-Off Report as supporting detail for your manual journal entry. Keep in mind that the best way to make corrections to fix discrepancies you identify is to reverse invoice distributions and re-match to the correct purchase order. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 9 ONLY. COPYING ekit MATERIALS FROM THIS

332 Agenda Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 10 ONLY. COPYING ekit MATERIALS FROM THIS

333 Key Accounts in Procure to Pay Key Accounts Receiving Inventory Account The Receiving Inventory Account is a clearing account. The account is used for perpetual (on receipt) accruals. After receiving transactions are processed and the Transfer Transactions to GL process is run, the Receiving Inventory Account is cleared and the Material account is charged with the cost of the capitalized inventory. Specify this account when you define Receiving Information for your inventory organizations. Inventory AP Accrual This is the account used by Purchasing to accrue your payable liabilities when you receive items you will capitalize as inventory. This account represents your uninvoiced receipt liability and is usually part of your Accounts Payable Liabilities in the balance sheet. Payables relieves this account when the invoice is matched and validated. Specify this account when you define Inventory Information for your inventory organizations in the Other Accounts tab. AP Liability This defaults from the supplier site and is credited when a standard invoice is entered or debited when a credit memo or debit memo is entered. The account is relieved when the invoice is paid. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 11 ONLY. COPYING ekit MATERIALS FROM THIS

334 Expense AP Accrual This is the account used by Purchasing to accrue your payable liabilities when you receive items you will expense. This account represents your uninvoiced receipt liability when you run the Receipt Accruals - Period End process. Specify this account on the Accrual tab when you set up Purchasing Options. Material An asset account that tracks material cost. For average costing, this account holds your inventory and in transit values. Once you perform transactions, you cannot change this account. Specify this account when you define Inventory Information for your inventory organizations in the Valuation Accounts region for the Costing Information tab. Charge Account This is the charge account is the account that will be charged for the purchase on either the balance sheet or income statement. If the destination type for the distribution is Inventory, this account will be the Material account associated with the subinventory and you cannot override it. This is the balance sheet account that will be charged after inventory is capitalized. If the destination type is expense, you can specify this account (provided it isn t project related) and override any defaults. This account will be either an asset clearing account that will be included on the balance sheet or an expense account that will be included on the income statement. This account is either created or specified when you create a purchase order. Purchase Price Variance This account is used to record differences between purchase order line price and standard cost. The Purchase Price Variance is calculated when items delivered to inventory are costed. This account is not used with the average cost method. For example, assume the purchase order line price for an item was set at $10 per item but standard cost was set to $12 per item and you purchased 10 items. The Purchase Price Variance would be $20. Specify the Purchase Price Variance account when you define Inventory Information for your inventory organizations in the Other Accounts tab. Invoice Price Variance The variance account used to record differences between purchase order price and invoice price. This account is used by Payables to record the invoice price variance for inventory items. For expense items, the account generator uses the charge account to record any invoice price variance. For example, assume the purchase order line price for an item was set at $10 per item but you were charged $12 per item and you purchased 10 items. The Invoice Price Variance would be $20. Specify this account when you define Inventory Information for your inventory organizations in the Other Accounts tab. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 12 ONLY. COPYING ekit MATERIALS FROM THIS

335 Accrual Accounting Perpetual Accrual (On Receipt) Accrual Accounting - Perpetual Accrual (On Receipt) Enter purchase order (1) When you enter a purchase order, accounts are created and stored with the purchase order distribution. The accounts will eventually be used as a basis for creating accounting that is sent to the general ledger. Creating a purchase order in and of itself generates no accounting that is sent to the general ledger. Receive (2) When you accrue on receipt, processing a receiving transaction automatically sends a receipt accrual to the general ledger. The Receiving Inventory Account is debited (quantity x purchase order line unit price) and the Inventory AP Accrual account (uninvoiced receipts account) is credited the same amount. Run the Journal Import process with a source of Purchasing to create unposted journals in the general ledger. Deliver and cost (3) After delivering to the final destination, the Receiving Inventory Account is cleared and the Material account is debited. If you use standard costing, the Material account is debited with the standard cost of the item and any difference is charged to the Purchase Price Variance account. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 13 ONLY. COPYING ekit MATERIALS FROM THIS

336 Period end accrual (4) When items are accrued on receipt, no period-end accrual is generated by the Receipt Accruals - Period-End process. The receipt accrual is automatically generated when the receipt is processed. Invoice and match (5) Entering an invoice and matching creates a debit to the Inventory AP Accrual account to clear the liability for the uninvoiced receipt (you now have an invoice). The credit is to the AP Liability account that defaults from the supplier site if the invoice unit price is the same as the purchase order line unit price. Any difference is charged to the Invoice Price Variance account. For items with destination type of Inventory, the Invoice Price Variance account will be the Invoice Price Variance account specified when you defined Inventory Information for your inventory organizations in the Other Accounts tab. The AP Liability account is cleared when the invoice is paid. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 14 ONLY. COPYING ekit MATERIALS FROM THIS

337 Accrual Reconciliation Process Accrual Reconciliation Process To reconcile accrual accounts, you must: Analyze the A/P Accrual Account Balance: You need to monitor potential problems with purchasing and receiving activities that can affect the accuracy of your A/P accrual accounts. You can use the Accrual Reconciliation Report to identify the following problems in receiving, purchasing, inventory, work in process, or accounts payable transaction Use the Accrual Reconciliation Report: Use the Accrual Reconciliation Report to analyze the balance of the Accounts Payable (A/P) accrual accounts. To submit this report, you must have Purchasing and Payables installed. You can accrue both expense and inventory purchases as you receive them. Resolve Quantity Differences: The Accrual Reconciliation Report lets you identify quantity differences (i.e., when the quantity received for a purchase order shipment is smaller than the quantity invoiced). Such differences leave residual balances that never clear from the A/P accrual accounts. You should investigate the cause of these differences and take corrective actions before closing your period. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 15 ONLY. COPYING ekit MATERIALS FROM THIS

338 Common causes of quantity differences include: - Late inventory receipts: To correct late receipts, ensure that receivers enter all receipts into inventory. - Incorrect receipt quantities: To correct receipt quantities, enter receipt corrections. - Supplier overbilling: To correct overbilling errors, follow your standard procedure for supplier debit memos to clear the difference. Resolve Price Differences: The Accrual Reconciliation Report lets you determine how much you should have paid and whether the PO or invoice is correct. Such differences leave residual balances that never clear from the A/P accrual accounts. You should investigate the cause of these differences and take corrective actions before closing your period. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 16 ONLY. COPYING ekit MATERIALS FROM THIS

339 Accrual Accounting Periodic Accrual (Period End) Accrual Accounting - Periodic Accrual (Period End) Enter purchase order (1) When you enter a purchase order, accounts are created and stored with the purchase order distribution. The accounts will eventually be used as a basis for creating accounting that is sent to the general ledger. Creating a purchase order in and of itself generates no accounting that is sent to the general ledger. Receive (2) When you process a receipt, no accounting is created for period end accruals. Receipts that are accrued at period end will always be for a destination type of expense. Deliver and cost (3) When you deliver a receipt to its final destination, no accounting is created. The expense will be recorded after matching to the purchase order, running the Payables Accounting process and subsequently running the Payables Transfer to General Ledger process. Period end accrual (4) If an invoice is not entered by period end, the Receipt Accruals - Period End process will generate accruals and transfer the accounting for them to the GL Interface. Use the Journal Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 17 ONLY. COPYING ekit MATERIALS FROM THIS

340 Import program to create unposted journals. This journal is created with a reversal date in a subsequent period. The journal must be reversed so your receipt liability is not overstated. Reverse accrual in the general ledger (5) In the subsequent period, reverse the prior period accrual. Invoice and match (6) Entering an invoice and matching creates a debit to the Inventory AP Accrual account to clear the liability for the uninvoiced receipt (you now have an invoice). The entire credit is to the AP Liability account that defaults from the supplier site if the invoice unit price is the same as the purchase order line unit price. Any difference is charged to the Invoice Price Variance account. For items with destination type of Expense, the Invoice Price Variance account will be the same as the charge account. The AP Liability account is cleared when a payment is processed. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 18 ONLY. COPYING ekit MATERIALS FROM THIS

341 Accounting for Mass Additions Periodic Accrual (Period End) Accounting for Mass Additions - Periodic Accrual (Period End) Enter purchase order (1) When you enter a purchase order, accounts are created and stored with the purchase order distribution. The accounts will eventually be used as a basis for creating accounting that is sent to the general ledger. Creating a purchase order in and of itself generates no accounting that is sent to the general ledger. Receive (2) For most expenses and asset purchases (other than inventory), receipt accruals are generally processed at period end, so no accounting is transferred to the general ledger at the time the receipt is processed. Period end accrual (3) If no invoice is received and matched to the purchase order at period end, the Receipt Accruals - Period End process will generate an accrual that is transferred to the GL Interface. Run the Journal Import process to create unposted journals in the general ledger. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 19 ONLY. COPYING ekit MATERIALS FROM THIS

342 Reverse accrual (4) Perpetual accruals (on receipt accruals) are reversed when the invoice entered in Payables is matched to the purchase order. Periodic accruals (period end accruals) are reversed when a reversing journal is created and posted in the general ledger. Invoice and match (5) Entering an invoice and matching creates a debit to the Inventory AP Accrual account to clear the liability for the uninvoiced receipt (you now have an invoice). The credit is to the AP Liability account that defaults from the supplier site if the invoice unit price is the same as the purchase order line unit price. Any difference is charged to the Invoice Price Variance account. For items with destination type of Expense, the Invoice Price Variance account will be the same as the charge account. In the case of an asset that will be capitalized and depreciated in assets, the charge account is an asset clearing account associated with an asset category in Assets. The AP Liability account is cleared when a payment is processed. Post asset to Assets (6) The Post Mass Additions process places the asset in service. When the Create Journal Entries process is run in Assets, the charge account (the clearing account on the invoice distribution) is relieved and the cost account associated with the asset category is charged for the cost of the asset. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 20 ONLY. COPYING ekit MATERIALS FROM THIS

343 Accounting for Payments with Cash in Transit (Cash Clearing) Accounting for Payments with Cash in Transit (Cash Clearing) Enter invoice (1) A standard, unmatched invoice entered into Payables will generate a credit to the AP Liability account and a debit to the charge account specified on the invoice distribution. For expenses, this will be an income statement account; for assets that will be capitalized in Assets and depreciated, this account will be a balance sheet account (asset clearing account); for inventory received, the account will be the Inventory AP Accrual account. Pay invoice (2) When using a cash clearing (cash in transit) account with Cash Management, usually the AP Liability account is cleared when the payment is issued (however, it can be set to clear after the payment is cleared using Cash Management). Reconcile (3) After reconciling the payment with Cash Management, the cash clearing account (cash in transit) is relieved and the cash account associated with the payment document is credited. The cash clearing account may be the same as the cash account, but using separate accounts gives greater visibility to cash in transit on the balance sheet. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 21 ONLY. COPYING ekit MATERIALS FROM THIS

344 Accounting for Payments without Cash in Transit (Cash Clearing) Accounting for Payments without Cash in Transit (Cash Clearing) Enter invoice (1) A standard, unmatched invoice entered into Payables will generate a credit to the AP Liability account and a debit to the charge account specified on the invoice distribution. For expenses, this will be an income statement account; for assets that will be capitalized in Assets and depreciated, this account will be a balance sheet account (asset clearing account); for inventory received, the account will be the Inventory AP Accrual account. Pay invoice (2) When not using a cash clearing (cash in transit) account with Cash Management or not using Cash Management, the AP Liability account is cleared when the payment is issued. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 22 ONLY. COPYING ekit MATERIALS FROM THIS

345 Agenda Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 23 ONLY. COPYING ekit MATERIALS FROM THIS

346 Foreign Currency in Purchasing Foreign Currency in Purchasing In many businesses the environment is a global environment. One organization may purchase goods and services from all over the world. Oracle Purchasing allows you to create documents in a currency other than your defined functional currency. Your functional currency is defined in your Set of Books. You can create requisitions using multiple currencies other than your functional currency. Every line you enter on a requisition can specify a different currency. You can AutoCreate requisition created in one currency to a purchase order in a different currency. (See above graphic example.) Only one currency is allowed on a purchase order header. You can choose from three types of foreign currency exchange rates. You choose the date for your currency conversion. In a non-budgetary control environment, requisitions do not make journal entries. However, since approval rules are defined in your functional currency, the system requires conversion factors to translate requisitions created with nonfunctional currencies to the functional currency, so the approval analysis can performed. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 24 ONLY. COPYING ekit MATERIALS FROM THIS

347 Exchange Rate Overview Exchange Rate Overview In Oracle Purchasing you can specify three types of foreign currency exchange rates for you requisition line or purchase order. Spot - Daily exchange rate you use to perform foreign currency conversion. - Generally, a quoted market rate that applies to the immediate delivery of one currency for another on a specific date. Corporate - Exchange rate that your organization specifies to perform foreign currency conversion. - Generally, a standard rate determined by senior management for use throughout the corporation. User-Defined - Exchange rate specified by the buyer for the purchase order. - The exchange rate is specified to be constant for the purchase order. - You may create additional user-defined rate types. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 25 ONLY. COPYING ekit MATERIALS FROM THIS

348 Currency Similarities Between Requisitions and Purchase Orders Currency Similarities Between Requisitions and Purchase Orders Specify a rate type and rate date. Also specify a rate for user-enterable rate types. For automated rate types, Oracle Purchasing retrieves the rate based on the given rate date. The exchange rate expressed the units of functional currency that comprise a single unit of foreign currency. If 2 US Dollars (functional currency) equal 1 British Pound, set the exchange rate to 2. If the Journals: Display Inverse Rate profile option is set to Yes, the exchange rate expresses the units of foreign currency that comprise a single unit of functional currency. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 26 ONLY. COPYING ekit MATERIALS FROM THIS

349 Currency Differences Between Requisitions and Purchase Orders Currency Differences Between Requisitions and Purchase Orders Requisitions Oracle Purchasing maintains requisitions in functional currency, but includes foreign currency references for sourcing. The requisition total is expressed in functional currency Specify a single foreign currency reference for each requisition line. Optionally, specify a different currency reference for each requisition line. This currency cannot be changed once you approve the document. If you use the AutoSource function to create a foreign currency blanket agreement or catalog quotation, Oracle Purchasing retrieves the foreign currency information for the document. Oracle Purchasing automatically updates the functional unit price if you enter the foreign currency unit price using the specified rate. Oracle Purchasing also updates the foreign currency price if you update the functional unit price. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 27 ONLY. COPYING ekit MATERIALS FROM THIS

350 Purchase Orders Specify a single foreign currency for each purchase order. This currency cannot be changed one you approve the document. If you change the currency on an unapproved document, Oracle Purchasing does not automatically convert the line prices to the new currency. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 28 ONLY. COPYING ekit MATERIALS FROM THIS

351 Requisitions and Automatically Created Purchase Orders Using Foreign Currency Requisitions and Automatically Created Purchase Orders Using Foreign Currency You cannot specify currency information in AutoCreate if you are adding requisition lines to an existing document. Oracle Purchasing performs price tolerance verification for all currencies. When you use the AutoCreate function to create new purchase order, Oracle Purchasing converts the requisition price into a purchase order price based on specified currency and rate information. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 29 ONLY. COPYING ekit MATERIALS FROM THIS

352 Approving Requisitions and Purchase Orders Using Foreign Currency Approving Requisitions and Purchase Orders Using Foreign Currency Requisition Approval You cannot approve a requisition that is missing a rate at the line level. Oracle Purchasing uses the functional currency requisition total to verify authorization limits. Purchase Order Approval You cannot approve a purchase order that is missing a rate at either the header or distribution level. Oracle Purchasing converts a foreign currency purchase order into functional currency to verify authorization limits. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 30 ONLY. COPYING ekit MATERIALS FROM THIS

353 Invoice Currency Matching Invoice Currency Matching Purchase Order Invoice Matching The invoice and purchase order currency must match. The Oracle Payables AutoApproval process books any differences between the invoice and purchase order exchange rates to the Rate Variance Gain and Loss Account you specify in the Financials Options window. If you have a foreign currency purchase order, Payables also records exchange rate gains and losses. In addition, if the conversion rate differs between the purchase order and invoice, the conversion difference is recorded as an Exchange Rate Variance. Separate accounts are defined for exchange rate gains and losses. For more information, see Oracle Payables User s Manual. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 31 ONLY. COPYING ekit MATERIALS FROM THIS

354 Agenda Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 32 ONLY. COPYING ekit MATERIALS FROM THIS

355 Reports Reports Accounts Payable Trial Balance Use the Accounts Payable Trial Balance Report to verify that total accounts payable liabilities in Payables equal those in the general ledger. To reconcile these balances you can compare the cumulative total liability provided by this report with the total liability provided by your general ledger. Accrual Rebuild Reconciliation Report Use the Accrual Rebuild Reconciliation Report to analyze the balance of the Accounts Payable (A/P) accrual accounts. You can accrue both expense and inventory purchases as you receive them. When this happens, you temporarily record an accounts payable liability to your Expense or Inventory A/P accrual accounts. When Payables creates the accounting for the matched and validated invoice, Payables clears the A/P accrual accounts and records the liability from the supplier site. Run this report at period end. Accrual Reconciliation Report The Accrual Reconciliation Report is the same as the Accrual Rebuild Reconciliation Report with one key difference. The Accrual Rebuild Reconciliation Report creates records in a temporary table which are used as the basis for the report. The Accrual Reconciliation Report Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 33 ONLY. COPYING ekit MATERIALS FROM THIS

356 simply uses the records created by the Accrual Rebuild Reconciliation Report as a basis for the report. Run this report during the accounting period. Accrual Write-Off Report Use the Accrual Write-Off Report to provide supporting detail for your write-off journal entries. The process is as follows. First, you analyze the Accrual Reconciliation Report for transactions that you should expense out of the accrual accounts. After you have researched the reported accrual balances, you then use the Accrual Write-Off window to indicate which entries you wish to remove and write off from this report. And, after you have written off these entries, you use the Accrual Write-Off Report as supporting detail for your manual journal entry. Matched and Modified Receipts Report After you automatically create invoice distributions by matching an invoice for goods to a receipt, that receipt can be modified in Purchasing. For example, you might need to adjust a receipt because the quantity received was incorrectly recorded, or the product was defective and returned to the supplier. Use this report to identify receipts that have been changed after invoice matching, and for which no users have seen modifications. Payables Account Analysis Report Run the Payables Accounting report to review and analyze accounting entries in Payables. You can use the report parameters to limit the report to just the accounting information you want to review. The Payables Account Analysis report is helpful when you reconcile your accounts with your general ledger. For example, you can reconcile the prepaid expense account between Payables and your general ledger. You can submit this report in detail and compare it to an account analysis report in your general ledger. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 34 ONLY. COPYING ekit MATERIALS FROM THIS

357 Reports Reports Payables Accounting Entries Report Use this report to review and analyze accounting entries in the Payables subledger. You can request the report for a specific run of the Payables Accounting Process or the Payables Transfer to General Ledger program. Using the report parameters, you can produce a detailed or summary listing of the accounting information you want to review. The report also lists in detail any transactions that have been accounted with error and all entries that could not be transferred to the general ledger interface. When a transaction is accounted with errors, use the Update Accounting Entries window to update any invalid accounts. Posted Invoice Register Use the Posted Invoice Register to review accounting lines, summarized by invoice, that have been transferred to the general ledger. Because it presents amounts that have been charged to liability accounts, this report is valid only for an accrual set of books. The Posted Invoice Register is primarily a reconciliation tool. Use this report along with the Posted Payment Register and the Accounts Payables Trial Balance Report to reconcile balances between Payables and your general ledger. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 35 ONLY. COPYING ekit MATERIALS FROM THIS

358 Posted Payment Register Use the Posted Payment Register to review accounting lines, summarized by payments that have been transferred to the general ledger. Because it presents amounts that have been charged to liability accounts, this report is valid only for an accrual set of books. You can submit the Posted Payment Register for one payment journal entry batch or all payment journal entry batches. The Posted Payment Register is primarily a reconciliation tool. Use this report along with the Posted Invoice Register and the Accounts Payables Trial Balance Report to reconcile balances between Payables and your general ledger. Receipt Accruals - Period End Use the Receipt Accruals - Period-End process to create period-end accruals for your uninvoiced receipts for expense distributions. Purchasing creates an accrual journal entry in your general ledger for each uninvoiced receipt you choose using this window. Receiving Account Distribution Report The Receiving Account Distribution Report lists the accounting distributions for your receiving transactions. This report supports the distributions created for the following transactions: Purchase Order Receipts Purchase Order Receipt Adjustments Purchase Order Returns to Supplier Deliver to Expense Destinations Return to Receiving from Expense Destinations Match Unordered Receipts This report helps you reconcile your receiving accounting to your general ledger. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 36 ONLY. COPYING ekit MATERIALS FROM THIS

359 Reports Reports Unaccounted Transactions Report Use this report to identify and review all unaccounted invoice and payment transactions and see the reason that Payables cannot account for a transaction. Run this report after you have run the Payables Accounting Process. The report will then show only transactions that had problems that prevented accounting. You can then correct the problems and resubmit the accounting process. Note that this report does not include invoices that have no distributions. Uninvoiced Receipts Report The Uninvoiced Receipts Report should be run before the Receipt Accrual - Period-End process. With this report, you can review all or specific uninvoiced receipts for both period end and online accruals. Uninvoiced receipts are goods and services you have received that your supplier did not invoice yet. This report indicates exactly what you have to accrue and for what amount, and helps you analyze your receipt accrual entries. The accrual amount is the difference between the quantity received and the quantity billed multiplied by the unit price of the item. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 37 ONLY. COPYING ekit MATERIALS FROM THIS

360 Agenda Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 38 ONLY. COPYING ekit MATERIALS FROM THIS

361 Financials Options Financials Options Purchasing Responsibility (N) Setup > Organizations > Financial Options > (T) Accounting Future Periods The first time you enter this field, Payables displays the number of future periods you use in your set of books as a default. You can change this number to the maximum number of future periods you want to allow in Payables. Payables uses this value to limit the number of future periods you can maintain in the Control Payables Periods window. You can import/enter invoices in future periods, but Invoice Validation applies holds that prevent you from paying them or creating accounting entries for them. Liability (N) Fin Options > Supplier > Supplier Site > Invoice Payables assigns this account as the default Liability Account for all new suppliers you enter. You can override this value at any level. If you use Accrual Basis accounting, then the Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 39 ONLY. COPYING ekit MATERIALS FROM THIS

362 Liability Account for an invoice determines the liability account(s) charged when you create accounting entries for invoices. Prepayment The Prepayment account and description for a supplier site s invoices. The Financials option value defaults to new suppliers, and the supplier value defaults to new supplier sites. When you enter a Prepayment type invoice, Payables will use the Prepayment account as the default GL account for each Item type line you create. Future Dated Payment If you use future dated payments, then enter a value for Future Dated Payment account. This value defaults to all new suppliers and new bank accounts. The supplier value defaults to all new supplier sites. The bank account value defaults to new payment documents. Discount Taken If you choose to distribute your discounts to the system Discount Taken Account, Payables uses this account to record the discounts you take on payments. Use the Payables Options window to select your method for distributing discounts for your invoices. PO Rate Variance Gain/Loss Payables uses these accounts to record the exchange rate variance gains/losses for your inventory items. The variance is calculated between the invoice and either the purchase order or the receipt, depending on how you matched the invoice. These accounts are not used to record variances for your expense items. Any exchange rate variance for your expense items is recorded to the charge account of the purchase order. Payables calculates these amounts during Invoice Validation. Expenses Clearing Payables uses this as a temporary account to record information about credit card transactions imported from Self-Service Expenses using the Expense Report Import program. When you import a credit card transaction, Payables creates a debit in this account. When payment for the expense is remitted, Payables reverses the original entry by creating a credit for the same amount. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 40 ONLY. COPYING ekit MATERIALS FROM THIS

363 Purchasing Options Purchasing Options Purchasing Responsibility (N) Setup > Organizations > Purchasing Options > (T) Accrual Accrue Expense Items At Receipt - Accrue expense items upon receipt. You can override this setting in the Shipment Details window when you are entering purchase orders and releases. At Period End - Accrue expense items at period end. Accrue Inventory Items At Receipt - Accrue inventory items at receipt. This is the only choice and it cannot be changed. Expense AP Accrual Account Enter the default Expense AP Accrual Account. Accrual Account Description This is a display only field and is the concatenated description of the Expense AP Accrual account segments. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 41 ONLY. COPYING ekit MATERIALS FROM THIS

364 Payables Options Payables Options Payables Responsibility (N) Setup > Options > Payables > (T) Accounting Methods Primary Accounting Method Accounting method you use for your primary set of books. You can specify either Accrual or Cash. Although Primary Accounting Method is not a required field, you cannot create accounting entries until you have entered a primary accounting method. Payables creates accounting entries according to the accounting method you choose. Carefully consider these settings at implementation time because you cannot change them after accounting events occur (for example, after any invoice has been validated in your system). Secondary Accounting Method If you want to use combined basis accounting, choose Accrual or Cash for the accounting method you use for your secondary set of books. If you do not want to use combined basis accounting, choose None. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 42 ONLY. COPYING ekit MATERIALS FROM THIS

365 Automatic Offset Method Enable Automatic Offsets by selecting Balancing or Account as your Offset Method if you want Payables to automatically create balancing accounting entries for your invoice and payment transactions. Carefully consider this option before setting it. Changing your automatic offset setting after creating accounting entries can result in slower Payables Accounting Process performance. Also, under certain circumstances, changing this setting can result in accounting irregularities. Choose one of the following three options: None - Do not use Automatic Offsets. For your invoice transactions, Payables creates one liability accounting entry, and for your payment transactions, Payables creates one cash type accounting entry. Balancing - Payables uses the supplier site s default liability account and overwrites the balancing segment (usually the cost center code) with the balancing segment from the expense distribution GL Account. Account - When creating the offsetting liability account, Payables uses the expense GL Account from the invoice distribution and overwrites the account segment with the default liability account from the supplier site. Prevent Prepayment Application Across Balancing Segments If you use Automatic Offsets, you can enable this option to prevent the application of a prepayment amount to an invoice or expense report amount that is charged to a different balancing segment. Transfer to GL Tab Transfer to GL Interface Select the level at which you want to summarize accounting entries when you submit the Payables Transfer to General Ledger program. If Payables creates summarized journal entries, Payables combines all the invoice or payment transactions for a particular account or date into a single journal entry line (for debits and for credits so they are not netted together). If you do not create summarized journal entries, then Payables creates a journal entry line for each accounting entry. It is usually not necessary to send accounting to the general ledger in detail. In Detail - Do not summarize the entries. Summarize by Accounting Date - Summarize the accounting lines by account and date. Summarize by Accounting Period - Summarize the accounting lines by account and accounting period. Drilldown functionality is available from General Ledger regardless of the parameters in the Transfer to General Ledger program. When accounting entries are transferred to the GL Interface table, a link is automatically created. This means that full drilldown functionality to the Payables accounting entries is always available from General Ledger, no matter what the level of summarization. Submit Journal Import Enable this option if you want to submit journal import when you submit Payables Transfer to General Ledger. Journal Import imports accounting entries from the GL Interface into General Ledger. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 43 ONLY. COPYING ekit MATERIALS FROM THIS

366 Allow Override at Program Submission If this option is enabled, then when users submit the Payables Transfer to General Ledger Process, they can change the defaults that you set in this region. Currency Tab Use Multiple Currencies Enable this option if you want to enter and pay invoices in a currency different from your functional currency. Payables also allows you to define a multiple currency payment format and bank account if you enable this option. Require Exchange Rate Entry Require Exchange Rate Entry. Select this option to require entry of an exchange rate whenever you enter an invoice or a payment in a currency other than your functional currency. If you maintain daily rates in the Daily Rates window, Payables defaults the rate automatically, based on the date and the Rate type you enter. Payables always requires you to enter an exchange rate when you use the User exchange rate type, even if you do not enable this option. Calculate User Exchange Rate If you already know the functional currency amounts of any foreign currency invoices you are entering, then you can enable this option so Payables can calculate and enter effective invoice exchange rates for those invoices. This functionality applies to invoices you enter in the Invoices window and invoices you import from the Payables Open Interface. If this option is enabled, then when you enter a foreign currency invoice, if you select the exchange rate type of User and you provide the functional currency amount, then Payables calculates and enters the exchange rate. Exchange Rate Type Payables uses this as the default exchange rate type when you import/enter invoices or create payments. Realized Gain/Loss Payables uses these accounts as the default realized gain and loss accounts for payments from each of your bank accounts. If the exchange rate changes between invoice entry and payment, Payables automatically calculates the realized gain or loss and records it in this account. Payables records gains and losses only if you use accrual basis accounting. The Account for Gain/Loss Payables option controls when Payables accounts for gains and losses. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 44 ONLY. COPYING ekit MATERIALS FROM THIS

367 Agenda Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 45 ONLY. COPYING ekit MATERIALS FROM THIS

368 Purchasing Accounting Implementation Considerations Purchasing Accounting Implementation Considerations Timing and frequency of running the Payables Transfer to General Ledger process Determine how often to run the Payables Transfer to General Ledger process based on how often you need to do financial reporting out of the general ledger, asset volume (how often will you need to process mass additions) and how often you will need to see balances in Projects updated. At a minimum, you must run this process one time at period close. If you need to see Projects balances updated every day, you will run this process daily. If you are not using Projects, but you are using Assets, you must run this process prior to running the Mass Additions Create process. Therefore, if your asset volume is high, you will probably want to transfer several times an accounting period. Timing and frequency of running the Payables Accounting process Since running the Payables Accounting process is a prerequisite to running the Payables Transfer to General Ledger process, you must run Payables Accounting at least as many times as you run the Payables Transfer to General Ledger. You may decide to run this process more frequently (daily for example) if you want to be able to view accounting online. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 46 ONLY. COPYING ekit MATERIALS FROM THIS

369 Timing and frequency of running the Invoice Validation process Since running the Invoice Validation process is a prerequisite to running the Payables Accounting process, you must run it at least as often as you run the Payables Accounting process. The Invoice Validation process is also a prerequisite for processing payment batches, so in order to determine how often to run the Invoice Validation process, look at both your need to run Payables Accounting and your need to process payment batches. Choose the one that will be done most frequently. The Invoice Validation process is also used to validate invoices. It places holds on invoices and releases system holds. If you import/enter invoices by batch, you may want to also run the Invoice Validation process by batch. The execution report will give immediate feedback as to holds placed and released, which can provide more timely information for resolving invoice issues. Level of detail to transfer accounting to general ledger Choosing the In Detail option transfers the most accounting to the general ledger and should only be used when special general ledger reporting is necessary for financial statements. The other two options summarize by day or by accounting period. Summarizing by accounting period sends the least amount of detail to the general ledger. Regardless of the setting, you will always be able to drill down to the subledger (provided the Import Journal References option is selected with the journal source) with online inquiry, the Application Desktop Integrator (ADI) and with the standard drilldown reports that are available. Determine number of clearing accounts to use for projects, assets and cash management If you are using cash management, the cash clearing (cash in transit) account can be the same account as the cash account. You can use the Cash in Transit report in cash management to view cash in transit. However, if you need to have visibility on the balance sheet for cash in transit, use a separate cash clearing account. For each payables document you create, you can have a separate cash clearing account if you need to. Determine the number of clearing accounts you will need for assets. At a minimum, you can establish one asset clearing account and at the maximum you can establish one asset clearing account per asset category you create in fixed assets. Determining how many clearing accounts you need will be based on asset volume and the need for visibility. You must balance the need for mass addition reconciliation with additional account setup and maintenance. Reconciliation is easier with more clearing accounts. Determine the number of clearing accounts you will need for projects. Again, the issue is primarily related to visibility, reconciliation and maintenance. Project clearing accounts are built using workflow account generator. If you are using Projects, you must modify the workflow to build the account combination for both Purchasing and Payables. Never build a clearing account that Assets uses as a clearing account. You want to make sure that invoice distributions associated with items that you want to capitalize in Assets go to Assets, and invoice distributions associated with projects go to Projects. Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 47 ONLY. COPYING ekit MATERIALS FROM THIS

370 Summary Purchasing Accounting THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 13 - Page 48 ONLY. COPYING ekit MATERIALS FROM THIS

371 Purchasing Administration Chapter 14 Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 1 ONLY. COPYING ekit MATERIALS FROM THIS

372 Purchasing Administration Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 2 ONLY. COPYING ekit MATERIALS FROM THIS

373 Objectives Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 3 ONLY. COPYING ekit MATERIALS FROM THIS

374 Agenda Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 4 ONLY. COPYING ekit MATERIALS FROM THIS

375 Maintaining Your Oracle Purchasing Database Records Maintaining Your Oracle Purchasing Database Records Records and documents you create on the database, such as supplier records, requisitions, and purchase orders take up valuable space on the system. They slow your search for specific records and increase your query time. This unit will provide three methods which can be used together to assist you in freeing up valuable system resources. Merging supplier records. Mass canceling of documents. Purging documents and suppliers. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 5 ONLY. COPYING ekit MATERIALS FROM THIS

376 Integration with Payables Integration with Payables When Oracle Payables and Oracle Purchasing are used in conjunction they share the Supplier Master. When a merge for suppliers has been initiated, Oracle Payables submits a concurrent request to run the Supplier Merge Program which transfers the information from the Old Supplier to the New Supplier and also runs the Purchase Order Header Updates Report and the Supplier Merge Report. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 6 ONLY. COPYING ekit MATERIALS FROM THIS

377 What is MassCancel? What is MassCancel? Document Type Date Range Supplier, for purchase orders Accounting flexfields Define MassCancel Listing You can review the Define MassCancel Listing which includes all purchase orders or requisitions that meet your criteria including those that you cannot cancel. For purchase orders and requisitions that cannot be canceled, the Define MassCancel Listing reports the reason for this restriction. Running MassCancel You review each saved cancellation batch and optionally delete batches that you do not want to cancel. In addition, Oracle Purchasing requires individual document cancellation confirmation within a batch to reduce the risk of unexpected or unwanted document cancellation. The confirmed documents are canceled. MassCancel is recorded as the cancellation reason for each document. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 7 ONLY. COPYING ekit MATERIALS FROM THIS

378 Using Purchasing MassCancel Using Purchasing MassCancel You can specify criteria for canceling groups of requisitions or purchase orders that you no longer want to honor. Once you submit the criteria, you can review the a listing which includes all request that meet your criteria, including those that you cannot cancel. You then review each saved cancellation batch and optionally delete batches that you do not want to cancel. You are required to confirm each individual document cancellation to reduce the risk of unexpected or unwanted document cancellation. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 8 ONLY. COPYING ekit MATERIALS FROM THIS

379 The Define MassCancel Listing Reviewing the Define MassCancel Listing Use the Define MassCancel Listing to review the purchase orders and requisitions you have selected for cancellation using the Define MassCancel form. Oracle Purchasing prints this report automatically after you define your purchase order or requisition cancellation criteria in the Define MassCancel window and save your work. The report is in four sections: Unable to Cancel Requisitions Unable to Cancel Purchase Orders Partially in Range Documents Fully in Range Documents Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 9 ONLY. COPYING ekit MATERIALS FROM THIS

380 Purge Overview Purging Purging is a technique for deleting data in Oracle that you no longer need to run your business. You may choose to do a purge as a year-end clean up, or when a project is terminated. A feature that Oracle Purchasing provides is to be able to purge by document category. You can purge a particular group of records from the database. Oracle Purchasing lets you choose from the following separate categories. You enter purge criteria, specifying the document category you want to purge. Review the Preliminary Purged Listings report and identify any purge candidates that you do not want to purge. You then confirm the purge information. When you purge a document or supplier, Oracle Purchasing also purges related information. You can restart the purge if your computer system fails or the purge process ends in an error. In addition, you can abort a purge after you initiate the purge and before the Purge program begins deleting records. However, if the Purge has one of the following statuses, you cannot abort until the phase is completed: Initiating, Revalidating, Summarization. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 10 ONLY. COPYING ekit MATERIALS FROM THIS

381 Oracle Purchasing maintains document and supplier summary information in the Purge Summary Tables. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 11 ONLY. COPYING ekit MATERIALS FROM THIS

382 Preparing for a Purge Prepare for a Purge Write Off Accrual Differences Run the Accrual Reconciliation report if you use online accruals or have Oracle Inventory installed. Write off all accrual differences up to the activity date you intend to use when running Purge. Failure to write off accrual differences will cause difficulty balancing the next run of the accrual reconciliation report with your general ledger. Prepare the Database Back up and archive the Oracle Applications database. Confirm the integrity of the backup for safety. Create large rollback segments to prepare the database. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 12 ONLY. COPYING ekit MATERIALS FROM THIS

383 Purge Category Inclusion Purge Category Inclusion Oracle Purchasing lets you choose from the following separate categories Simple Requisitions - Canceled and final closed requisitions that you have not placed onto purchase orders Simple Purchase Orders - Canceled, closed and final closed purchase orders that are not matched to invoices in Oracle Payables - Simple Requisition category Simple Invoices (only available if you have Oracle Payables installed) - Fully paid and posted invoices that are not matched to Oracle Purchasing orders Matched Invoices and POs (only available if you have Oracle Payables installed) - Canceled, closed or final closed purchase orders that are matched to fully paid and posted invoices in Oracle Payables - Simple Requisition category Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 13 ONLY. COPYING ekit MATERIALS FROM THIS

384 - Simple Purchase Orders category - Simple Invoices Suppliers - Inactive suppliers that are not referenced on any document You should purge all appropriate documents before purging your supplier information, because Oracle Purchasing does not purge suppliers that you referenced on existing documents. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 14 ONLY. COPYING ekit MATERIALS FROM THIS

385 Conditions for a Purge: Purchasing Conditions for a Purge: Purchasing Oracle Purchasing only purges documents or suppliers that meet specific conditions. Requisition Conditions for Purge Header must be canceled for final closed. Lines must be canceled or final closed or requisitions does not have lines. Lines must all be supplier-sources. Internally sourced requisitions cannot be purged. All lines that are not canceled or final closed must be referenced on purgeable purchase orders. (This condition does not apply to the Simple Requisitions category.) Purchase Order Conditions for Purge Must be approved. Must be closed, canceled or final closed. If the PO is a blanket purchase agreement, all releases against the agreement must also be purgeable. If the document is a standard PO any contract it references must also be purgeable. All online requisitions that reference a PO must be purgeable. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 15 ONLY. COPYING ekit MATERIALS FROM THIS

386 The PO is not matched to any invoices. (This condition applies only to the Simple Purchase Orders category.) All invoices that are matched to the PO meet the purge conditions for invoices. (This condition applies only to the Matched Invoices and Purchase Orders category.) The PO is not referenced in Oracle Inventory, Oracle Master Scheduling/MRP, or Oracle Work in Process. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 16 ONLY. COPYING ekit MATERIALS FROM THIS

387 Conditions for a Purge: Payables Conditions for a Purge: Payables Invoice Conditions for Purge Nonzero amount invoices must be fully paid. Invoices must be posted. Invoices cannot have any 1099 distributions. Invoice is not from a recurring payment. Invoice is not for a 1099 suppliers. If Oracle Assets is installed, all of the invoice's distribution lines must be tested by MassAddition. A prepayment must not be applied to the invoice. Payments must be posted. An invoices is purgeable only when all of its payments are purgeable. A payment is purgeable only when all of the invoices paid by the payments are purgeable. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 17 ONLY. COPYING ekit MATERIALS FROM THIS

388 Supplier Conditions for Purge Supplier is not an employee. Supplier in inactive. Supplier is a child or parent of another supplier. Supplier is not referenced to by records in any Oracle Payables, Oracle Purchasing or Oracle Assets tables. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 18 ONLY. COPYING ekit MATERIALS FROM THIS

389 Purge Reports Purge Reports When you purge records, Oracle Payables automatically prints the following reports. You cannot submit any purge report from the Submit Request window. Preliminary Purged Listings Final Purged Listing Rejected Purged Listings Final Purge Statistics Report Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 19 ONLY. COPYING ekit MATERIALS FROM THIS

390 Restarting or Aborting a Purge Restarting a Purge If your computer system fails or the purge process ends in an error, you can restart the first active action of the purge process. In the Submit Purge window, query the purge. Choose Restart. The purge program will restart the last action you choose: Initiate, confirm or Abort. Aborting a Purge You can abort a purge after you initiate the purge and before the purge program begins deleting records. If the purge has one of the following statuses, you cannot abort until the phase is completed: Initiating, Revalidating, Summarization. In the Submit Purge window, query the purge. Choose Abort. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 20 ONLY. COPYING ekit MATERIALS FROM THIS

391 Purge Summary Information Purge Summary Information Oracle Purchasing maintains a summary of each document or supplier you purge. Oracle Purchasing does not maintain any standard reports that reference summary data; however, it does check these tables to ensure unique document numbering. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 21 ONLY. COPYING ekit MATERIALS FROM THIS

392 This is a sample list of the primary data elements. Other columns are populated in the appropriate history tables. Oracle Purchasing also maintains receipt, checks, and invoice payment summaries. Primary Summary Data Requisitions Purchase Orders Invoices Suppliers Buyer Creation Date Yes Yes Currency Yes Yes Document Number Yes Yes Yes Document Total Yes Yes Yes Document Type Yes Yes Invoice Batch Yes Invoice Date Yes Preparer Yes Yes Purge Name Yes Yes Yes Yes Release Number Yes Supplier Yes Yes Yes Supplier Number Yes Supplier Site Yes Yes Supplier Type Yes Yes Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 22 ONLY. COPYING ekit MATERIALS FROM THIS

393 Recommendations for Efficient Purging Recommendations for Efficient Purging To purge the most complete set of records, choose the matched invoices and POs category first, then initiate a second purge for the suppliers category. Submit a purge when users are least likely to update records in the database. The purge process can take several hours to complete. You can more efficiently purge a large number of records by submitting several smaller purges. On you first purge, set a Last Activity Date that is far in the past and gradually increase the date with each purge. Make sure that the databases rollback segments you create are large enough so that you have sufficient memory to perform the purge. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 23 ONLY. COPYING ekit MATERIALS FROM THIS

394 Agenda Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 24 ONLY. COPYING ekit MATERIALS FROM THIS

395 Start Concurrent Managers Start Concurrent Managers Start the Receiving Transaction manager (Required) Start the PO Document Approval manager (Required) Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 25 ONLY. COPYING ekit MATERIALS FROM THIS

396 Schedule Background Processes Start Background Processes Schedule the Send Notifications for Purchasing Documents process (Required) The Send Notifications for Purchasing Documents process starts the workflow process that sends notifications about purchase documents. Schedule the Workflow Background Process (Required) The Workflow Background Engine must be running if you are using the following options: Background mode for purchasing approvals (as specified by the PO: Workflow Processing Mode profile) The Timeout feature in any workflow. The Timeout feature sends reminder notifications The Background mode for the item attribute Send PO Autocreation to Background in the PO Requisition Approval workflow. When the PO Create Documents workflow is submitted, if the item attribute Send PO AutoCreation to Background is set to Y, document creation will occur in Background mode. Start the Purchasing Database Administration process (Required) Use the Purchasing Database Administration process to initiate concurrent processes that purge obsolete records in Purchasing interface tables and other temporary tables. The purging of Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 26 ONLY. COPYING ekit MATERIALS FROM THIS

397 obsolete data helps reduce memory load and improve system performance. You need to run this process only once because the AutoSubmit process resubmits itself daily after you submit it the first time. Fill Employee Hierarchy process Run the Fill Employee Hierarchy process if you are using Position Hierarchies Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 27 ONLY. COPYING ekit MATERIALS FROM THIS

398 Schedule Other Processes Schedule Other Processes Retroactive Price Update The Retroactive Price Update on Purchasing Documents concurrent program automatically updates existing blanket releases and standard purchase orders retroactively with price changes from the parent blanket agreement or global purchase agreement. Printed Purchase Order The purchase order print processes can be scheduled to automatically run. Some organizations find this more efficient than on-demand processing. The Confirm Receipts Workflow Select Orders This is a process you submit through the Submit Request window. If you submit it, the Workflow Background Engine must also be running. Purchasing Database Administration This process is used to initiate concurrent processes that purge obsolete records in Oracle Purchasing interface tables and other temporary tables. This process will delete records from the following tables: PO_NOTIFICATIONS (Delete all the expired notifications) Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 28 ONLY. COPYING ekit MATERIALS FROM THIS

399 RCV_LOTS_INTERFACE (Unsaved/Unprocessed interface records) RCV_SERIALS_INTERFACE (Unsaved/Unprocessed interfaced records) Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 29 ONLY. COPYING ekit MATERIALS FROM THIS

400 Agenda Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 30 ONLY. COPYING ekit MATERIALS FROM THIS

401 Purge: Issues to Consider Purge: Issues to Consider Purging is a technique for deleting data in Oracle that you no longer need to run your business. You may choose to do a purge as a year-end clean up, or when a project is terminated. You can control the purge by restarting the purge in the event of a system failure attempt. You can also abort a purge before the the deletion process begins. 1. Naming conventions - How will you name purge and mass cancel batches? 2. Access and control - Who will have access and control to perform merging of suppliers, mass canceling of documents and purging of data. 3. Frequency - Will you have regularly scheduled maintenance jobs? - If not scheduled regularly, how will individual jobs be scheduled and authorized? Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 31 ONLY. COPYING ekit MATERIALS FROM THIS

402 4. Integration issues - Since database functions affect inquiry data, requirements of all the data users must be considered. Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 32 ONLY. COPYING ekit MATERIALS FROM THIS

403 Summary Purchasing Administration THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 14 - Page 33 ONLY. COPYING ekit MATERIALS FROM THIS

404 THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ONLY. COPYING ekit MATERIALS FROM THIS

405 Appendix A - Setup Steps Chapter 15 Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 1 ONLY. COPYING ekit MATERIALS FROM THIS

406 Appendix A - Setup Steps Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 2 ONLY. COPYING ekit MATERIALS FROM THIS

407 Objectives Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 3 ONLY. COPYING ekit MATERIALS FROM THIS

408 Agenda Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 4 ONLY. COPYING ekit MATERIALS FROM THIS

409 Setting Up Purchasing Setting Up Purchasing The following setup steps are basic setups. One person or a large team of people working concurrently may perform setups. In an implementation, common application setups are generally performed first, followed by shared setups for each product family (procure to pay, order to cash) and finally application specific setups. The intent of this module is to provide a setup overview to key setup tasks and the sequence in which they should be performed. Some of the steps included here may have already been performed while implementing other Oracle Applications. For more information, refer to the Oracle Purchasing User s Guide. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 5 ONLY. COPYING ekit MATERIALS FROM THIS

410 Define Users for Setup Tasks Set Up System Administrator (Required) Create one or more users who will be performing setup tasks and assign them the required setup responsibilities. In a small implementation, one user could perform all setups so assign all of the required responsibilities to that user. In a larger implementation, create users and assign the appropriate responsibilities to them. You do not need to assign an employee to a responsibility at this time. You will assign the following responsibilities: General Ledger Super User - Define set(s) of books System Administrator - Set system profile options, create responsibilities, set up printers and other system administration related tasks. Payables - Perform payables related setups Purchasing Super User - Perform purchasing related setups. HRMS Manager - Set up employees, hierarchies, locations, and organizations. You do not need this responsibility if Human Resources is not installed. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 6 ONLY. COPYING ekit MATERIALS FROM THIS

411 Note: If you are implementing multiple operating units, there s no need to assign the Purchasing Super User or Payables Manager responsibility at this point in time. Wait to assign them until the appropriate operating units are assigned to the responsibility. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 7 ONLY. COPYING ekit MATERIALS FROM THIS

412 Define a Ledger Define a Ledger (Required) Define accounting key flexfields and Cross Validation rules. You may not need to perform this step if you have already installed and set up Oracle General Ledger or performed a common applications setup. Prior to defining Period and Historical rates, you must use the System Administrator responsibility to set the GL: Ledger Name profile option to the appropriate Ledger. Set this profile option at the Responsibility level. You will also have to have at least one period with a status of Open in the Ledger attached to your responsibility before you will be able to set up Period and Historical rates. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 8 ONLY. COPYING ekit MATERIALS FROM THIS

413 Define Human Resources Key Flexfields Define Human Resources Key Flexfields (Required) You may not need to set up Human Resources key flexfields if you have already installed and set up Oracle Human Resource Management Systems. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 9 ONLY. COPYING ekit MATERIALS FROM THIS

414 Set Address Style Default Set Address Style Default (Optional) You can update country and territory information including the name, description, VAT member state code, or address style for any of the more than 200 predefined countries or territories. Address styles determine how locations and address styles are displayed on forms and printed on documents like purchase orders and payments. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 10 ONLY. COPYING ekit MATERIALS FROM THIS

415 Define Locations Define Locations (Required) You are required to set up at least one location for now. You can set up the remaining locations after you define inventory organizations and tax codes. You may need to revisit this step after you set up organizations, if you want to link a location to an inventory organization. If you set up default Ship-To and Bill-To locations now, they will be available to set as default values when you define Financial Options. It is a good idea to set up Locations now; however the setup can be performed any time from here forward. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 11 ONLY. COPYING ekit MATERIALS FROM THIS

416 Define Organizations Define Organizations (Required) You may not need to perform this step if you have already performed a common applications setup. Define business groups (BG) You will need to set up at least one business group first or use the default business group. You will need the Human Resources key flexfields to do this. A business group is a Human Resources organization to which you assign employees. After creating your business groups, use the System Administrator responsibility to set the HR:Business Group profile option. Once you ve done this, log out, then back in to the system, and continue defining the legal entities, operating units and inventory organizations that will roll up to the business group attached to the responsibility you use. Ledger Although the Ledger is not an organization, it is important to show that is a part of the organization hierarchy. Legal entities you define are associated with one and only one Ledger. Define legal entities (LE) Set up your legal entities. Make sure you specify the Ledger that the legal entity rolls up to in the Legal Entity Accounting window. To open the Legal Entity Accounting window, click the Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 12 ONLY. COPYING ekit MATERIALS FROM THIS

417 button labeled Choose. Click Others for your GRE/Legal Entity, then select Legal Entity Accounting from the list of values. If you do not specify the Ledger here, you will not be able to create and save operating units later! Legal entities provide flexibility for reporting, especially statutory tax compliance reporting. For many Oracle reports, you can report across operating units at the legal entity level. For example, you can run an Accounts Payable trial balance at the legal entity level to have a consolidated Trial Balance for all operating units that roll up into the legal entity. The legal entity generally becomes the balancing segment; however, that is not always the case. Define operating units (OU) When operating in a Multi-Org environment, it is a good idea to create one operating unit and perform the necessary setups for that operating unit. If you change your mind in the future, you can add additional operating units fairly easily. Note: If you are using multiple operating units, you must use the System Administrator responsibility and run the Replicate Seed Data concurrent request for each additional operating unit you define (the ADADMIN utility is used for the first one). Define inventory organizations (IO) Define at least one inventory organization. This is a required step regardless of whether or not you will be managing inventory and processing receiving activities. You will need to specify a master inventory organization when you set up Financial Options. Be prepared to specify the following account combinations: Material (defaults to new subinventories but you can override it) Purchase Price Variance Invoice Price Variance Inventory AP Accrual Sales Cost of Goods Sold Note: All Oracle Applications users access the system through a responsibility that is linked to a security group and a security profile. The security group determines which Business Group the user can access. The security profile determines which records (related to organizations, positions and payrolls) the user can access within the Business Group. For more information, refer to Using Oracle HRMS - The Fundamentals. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 13 ONLY. COPYING ekit MATERIALS FROM THIS

418 Create Responsibilities Create Responsibilities (Required) Create the responsibilities you ll need to perform setup. Each responsibility will be linked to a business group and operating unit (if you re using them) and a Ledger. You do not need to create all of your responsibilities at this time, just the ones that are necessary to perform system setups. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 14 ONLY. COPYING ekit MATERIALS FROM THIS

419 Set Key Profile Options Set Key Profile Options (Required) The following profile options should be set prior to entering setups. HR: Business Group HR: Security Profile GL: Ledger Name HR: User Type Printer Concurrent: Report Copies MO: Operating Unit PO: Workflow Processing Mode Note: Not all profile options are available to be set at all levels. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 15 ONLY. COPYING ekit MATERIALS FROM THIS

420 Convert to Multi-Org Convert to Multi-Org (Required) After creating your first operating unit, you will need the system administrator to run the ADADMIN utility to convert to Multi-Org. This is only necessary for the first operating unit you add. When adding additional operating units, use the System Administrator responsibility and run the Replicate Seed Data process for each additional operating unit you create. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 16 ONLY. COPYING ekit MATERIALS FROM THIS

421 Set Up Descriptive Flexfields Set Up Descriptive Flexfields (Optional) Set up descriptive flexfields now so you will be able to capture any setup data that must be stored in a descriptive flexfield. For example, if you need descriptive flexfield information stored with suppliers, the descriptive flexfield should be set up prior to entering suppliers. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 17 ONLY. COPYING ekit MATERIALS FROM THIS

422 Define Purchasing Lookups and Codes Define Lookups and Codes (Optional) If you need these lookup codes, create them now in the Oracle Purchasing Lookups window so they are available when you specify default values for Financial Options. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 18 ONLY. COPYING ekit MATERIALS FROM THIS

423 Define Payment Terms Define Payment Terms (Required) Set up at least the default payment terms you will specify when you set up Financial Options. You can delay this setup step but should complete it prior to entering suppliers. You will need to perform this setup only one time even if you have multiple operating units. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 19 ONLY. COPYING ekit MATERIALS FROM THIS

424 Define Tax Define Tax (Optional) If you need to specify a default tax code when you set up Financial Options, set it up now. Additional tax related setups may be performed later. If you have defined multiple operating units, you will need to perform this step for each one. For more information, refer to the Oracle Payables User s Guide. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 20 ONLY. COPYING ekit MATERIALS FROM THIS

425 Define Freight Carriers Define Freight Carriers (Optional) Define freight carriers if you want to specify the freight carrier that a supplier should use on a purchase document. You must perform this step for each inventory organization. You select in Financials Options, the Ship Via field. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 21 ONLY. COPYING ekit MATERIALS FROM THIS

426 Define Financials Options Define Financials Options (Required) Use the Financials Options window to set the following information: Employee numbering Position approval hierarchies option (whether to use position approval hierarchies) Inventory organization Business group (Make sure a business group is specified.) Supplier numbering Employee numbering You must first use the Choose Ledger window to specify your primary Ledger before you will be able to enter the Financial Options window. This step must be performed for each operating unit. The following account combinations should be set up in advance (if you have not enabled dynamic insertion for your Ledger) or at least the segment values. Be prepared to enter the following accounts: Liability Prepayment Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 22 ONLY. COPYING ekit MATERIALS FROM THIS

427 Discount Taken In addition, be prepared to optionally enter the following accounts: Future Dated Payment PO Rate Variance Gain PO Rate Variance Loss Expenses Clearing Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 23 ONLY. COPYING ekit MATERIALS FROM THIS

428 Define Inventory Key Flexfields Define Inventory Key Flexfields (Required) Even if you do not use any of the above flexfields, you must still enable at least one flexfield segment for each and compile them because Oracle Inventory transactions (such as the Define Items window), inquiries, and reports require a frozen flexfield definition. The Stock Locator flexfield is an optional flexfield. The rest are required. Note: Define any Shorthand Aliases you want to use prior to compiling your flexfields. This is an optional step. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 24 ONLY. COPYING ekit MATERIALS FROM THIS

429 Set Up Shorthand Aliases Set Up Shorthand Aliases (Optional) Shorthand aliases are nicknames for key flexfield combinations. Users can choose from values that are easily recognized to default key flexfield combinations. Using Shorthand Aliases can sometimes speed data entry and increase accuracy. Shorthand Aliases are commonly defined for long account combinations. Set the Flexfields: Shorthand Entry profile option to determine when the list of values opens. For example, some users may not want the list of values to be displayed when they enter a key flexfield that has a Shorthand Alias. You can enable them for some users and disable them for others. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 25 ONLY. COPYING ekit MATERIALS FROM THIS

430 Define Units of Measure Define Units of Measure (Required) You may not need to perform this step if you have already installed and set up Oracle Inventory or performed a common-applications setup. Initial definition is performed one time, regardless of how many operating units you have. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 26 ONLY. COPYING ekit MATERIALS FROM THIS

431 Define Standard Attachments Define Standard Attachments (Optional) Define any standard attachments. After you define your standard attachments, you can reference them on your documents. You can reference as many standard attachments from your documents as you want. If you want a text attachment to print on a purchase document, make sure you designate the usage for that attachment to be Supplier. You can provide attachments at the header and line level for the following documents: Requisitions Standard and Planned Purchase Orders (also shipment level) Blanket Purchase Agreements Releases (header and shipment levels) Contract Purchase Agreements (header level only) RFQs Quotations Receipts (line level only) Receiving Transactions (line level only) Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 27 ONLY. COPYING ekit MATERIALS FROM THIS

432 You can also provide attachments for your items. When you create an attachment, you designate whether you want the attachment to be available to the supplier, receiver, approver, or buyer. Or, you can designate that you want the attachment to appear to anyone who has access to that particular document on line. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 28 ONLY. COPYING ekit MATERIALS FROM THIS

433 Define Item Attributes, Codes, and Templates Define Item Attributes, Codes, and Templates Item Attribute Controls (Required with defaults) Most item attributes default to Item Master level control. The rest default to the Organizationlevel. Container type QuickCodes (Optional) Define container type QuickCodes. Status codes (Required with defaults) Define status codes. Default status codes include basic statuses such as Active, Inactive, Obsolete, and Prototype. Item type QuickCodes (Required with defaults) Define item type QuickCodes. Default QuickCodes include Finished Goods, Option Class, Kit, Purchased Item. Item commodity codes (Optional) Define customer item commodity codes. These can be used to group customer items. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 29 ONLY. COPYING ekit MATERIALS FROM THIS

434 Item templates (Optional) Define item templates. You can define an item template if many items share the same values for multiple attributes. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 30 ONLY. COPYING ekit MATERIALS FROM THIS

435 Define Category Codes and Category Sets Define Category Sets and Category Codes You may already have performed this step, if you set up Inventory. Define Category Codes (Required) Define category codes. Define Category Sets (Required with defaults) Define category sets. Examples of category sets are Inventory and Purchasing. Also, assign each functional area (Purchasing, Inventory, and so on) a default category set. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 31 ONLY. COPYING ekit MATERIALS FROM THIS

436 Define Catalog Groups Define Catalog Groups (Optional) A catalog group consists of descriptive elements for items to which you assign sets of values such as type, size, or color. You may already have performed this step, if you set up Oracle Inventory. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 32 ONLY. COPYING ekit MATERIALS FROM THIS

437 Define Subinventories Define Subinventories (Optional) You can define your own subinventories such as Inspection, Cold Storage, or Reject- Disposition. Subinventories are defined separately for each inventory organization. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 33 ONLY. COPYING ekit MATERIALS FROM THIS

438 Define Cross-Reference Types Define Cross-Reference Types (Optional) Cross-reference types are links between inventory items and other pieces of information. Examples of other pieces of information are old item numbers and supplier item numbers. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 34 ONLY. COPYING ekit MATERIALS FROM THIS

439 Define Jobs, Positions, and Position Hierarchies Define Jobs, Positions, and Position Hierarchies You might not need to perform this step if you have already installed and set up Oracle Human Resource Management Systems or performed a common applications setup. Define Jobs (Required) Define jobs. Define Positions (Optional) You must define positions if you plan to use position hierarchies. Define Position Hierarchies (Optional) You can define one or more position hierarchies to meet your needs. You must define positions if you plan to use Position Hierarchies. Make sure you run the Fill Employee Hierarchy process after defining position approval hierarchies. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 35 ONLY. COPYING ekit MATERIALS FROM THIS

440 Define Personnel Define Personnel (Required) You may not need to perform this step if you have already installed and set up Oracle Human Resource Management Systems or performed a common applications setup. If you use Oracle Purchasing without Oracle Human Resource Management Systems, use the setup window from within Purchasing for defining employees. If you use Purchasing with Human Resource Management Systems, use the setup window for defining employees from within the Human Resource Management Systems application. Purchasing users must have user names, which is a later setup step. These Purchasing user names must be linked to an employee name. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 36 ONLY. COPYING ekit MATERIALS FROM THIS

441 Define Approval Groups and Assignments Define Approval Groups and Assignments This step needs to be performed for each operating unit. Define Approval Groups (Required) Once you have defined an approval group you can then use it to assign approval functions to jobs or positions in the Approval Assignments window. Assign Approval Groups (Required) Approval groups will be associated with document types for either positions or jobs. If you are using a position hierarchy, you will associate approval groups with documents added to positions and if you are using an employee/supervisor hierarchy, you will associate approval groups with documents added to jobs. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 37 ONLY. COPYING ekit MATERIALS FROM THIS

442 Define Buyers Define Buyers (Required) Use the Buyers window to define and maintain your buyers. Buyers can review all requisitions using the Requisitions window, and only buyers can use the AutoCreate window to create purchasing documents. You need to perform this setup step once for each Business Group you define. You will only see buyers associated with your operating unit on many lists of values. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 38 ONLY. COPYING ekit MATERIALS FROM THIS

443 Set Up Document Types Document Types (Required) Navigation: Set up : Purchasing > Document Types Set up document types for each purchase document you will be using. This step must be performed for each operating unit. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 39 ONLY. COPYING ekit MATERIALS FROM THIS

444 Define Lookup Codes and Classes Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 40 ONLY. COPYING ekit MATERIALS FROM THIS

445 Define Line Types Define Line Types (Required) The default line types that Purchasing provides include Goods, Services, and Outside Processing. Oracle Purchasing comes with one line type defined and you must set up any additional line types you want to use. Perform this step once, regardless of how many operating units you have. Create additional Line Types prior to defining Purchasing Options in case you want to specify one as a default Line Type. Note: These Line Types are used by Oracle iprocurement as well as Oracle Purchasing. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 41 ONLY. COPYING ekit MATERIALS FROM THIS

446 Define Purchasing Options Define Purchasing Options (Required) Define Purchasing Options for each operating unit. Be prepared to provide the following account: AP Expense Accrual Account Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 42 ONLY. COPYING ekit MATERIALS FROM THIS

447 Define Receiving Options Define Receiving Options (Required) Define Receiving Options. This step needs to be performed for each inventory organization. Use the Change Organization function in the Purchasing menu to switch inventory organizations. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 43 ONLY. COPYING ekit MATERIALS FROM THIS

448 Set Address Style Default Set Address Style Default (Optional) You can update Country and Territory Information including the name, description, VAT member state code, or address style for any of the more than 200 predefined countries or territories. Address styles determine how locations and address styles are displayed on windows and printed on documents like purchase orders and payments. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 44 ONLY. COPYING ekit MATERIALS FROM THIS

449 Define Suppliers Define Suppliers (Required) Set up suppliers any time from this point forward. Suppliers are set up only once but supplier sites are set up for each operating unit. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 45 ONLY. COPYING ekit MATERIALS FROM THIS

450 Set Up Credit Card Programs Set Up Credit Card Programs (Optional) You only need to perform this step if you are using procurement cards. This step must be performed separately for each operating unit. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 46 ONLY. COPYING ekit MATERIALS FROM THIS

451 Define Items Define Items (Optional) This step needs to be performed for each inventory organization and involves the following tasks: Define items at the master level. Update the default categories assigned to the items. Assign items at the organization level. Define item relationships. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 47 ONLY. COPYING ekit MATERIALS FROM THIS

452 Modify Account Generator Modify Account Generator (Optional) The Account Generator process in Oracle Purchasing builds a charge, accrual, and variance account for each purchase order, release, and requisition distribution based on the distribution s Expense, Inventory, or Shop Floor destination type. Budget accounts are built only if you are using Encumbrances. You must review the default process that Purchasing uses to see if it meets your accounting requirements. You can optionally customize the Account Generator to build the accounts differently if that is a business requirement. If you are using Projects, you must modify the Purchasing and Payables Account Generator workflows. There are no defaults to build project-related accounts. Note: Account Generator workflows can be modified by Ledger Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 48 ONLY. COPYING ekit MATERIALS FROM THIS

453 Set Up Workflow Options Set Up Workflow (Required) If you will be using the PO Create Documents workflow to automatically generate standard purchase orders and blanket purchase agreement releases, verify the settings of the following attributes: Is Automatic Creation Allowed? Should Workflow Create the Release? Should Contract be used to AutoCreate Doc? Is Automatic Approval Allowed? Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 49 ONLY. COPYING ekit MATERIALS FROM THIS

454 Start Concurrent Managers Start Concurrent Managers Start the Receiving Transaction manager (Required) Start the PO Document Approval manager (Required) Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 50 ONLY. COPYING ekit MATERIALS FROM THIS

455 Schedule Background Processes Start Background Processes (Required) Schedule the Send Notifications for Purchasing Documents process (Required) The Send Notifications for Purchasing Documents process starts the workflow process that sends notifications about purchase documents. Schedule the Workflow Background Process (Required) The Workflow Background Engine must be running if you are using the following options: Background mode for purchasing approvals (as specified by the PO: Workflow Processing Mode profile) The Timeout feature in any workflow. The Timeout feature sends reminder notifications The Background mode for the item attribute Send PO Autocreation to Background in the PO Requisition Approval workflow. When the PO Create Documents workflow is submitted, if the item attribute Send PO AutoCreation to Background is set to Y, document creation will occur in Background mode. The Confirm Receipts Workflow Select Orders process. This is a process you submit through the Submit Request window. If you submit it, the Workflow Background Engine must also be running. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 51 ONLY. COPYING ekit MATERIALS FROM THIS

456 Start the Purchasing Database Administration process (Required) Use the Purchasing Database Administration process to initiate concurrent processes that purge obsolete records in Purchasing interface tables and other temporary tables. The purging of obsolete data helps reduce memory load and improve system performance. You need to run this process only once because the AutoSubmit process resubmits itself daily after you submit it the first time. Fill Employee Hierarchy process Run the Fill Employee Hierarchy process if you are using Position Hierarchies Activate Periodic Alerts If you are using any of the standard Purchasing alerts (Notification Controls assigned to blanket purchase agreements, for example) use the Alert Manager responsibility to activate the appropriate alerts. Schedule other processes Schedule other processes including: Purchase order print processes Workflow Agent Listener Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 52 ONLY. COPYING ekit MATERIALS FROM THIS

457 Set Up Sourcing Rules and Assignments Set Up Sourcing Rules and Assignments (Optional) You can set up Purchasing to automatically default source document information from a blanket purchase agreement or catalog quotation onto a requisition or purchase order line for a particular item and supplier. Or you can default just a supplier and optionally a supplier site. You can set up automatic sourcing now or at any time on an ongoing basis. Set up any Approved Supplier Lists as well. Note: Purchasing will choose to default the supplier with the highest allocation regardless of rank. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 53 ONLY. COPYING ekit MATERIALS FROM THIS

458 Open Accounting Periods Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 54 ONLY. COPYING ekit MATERIALS FROM THIS

459 Perform Additional System Administration Perform Additional System Administration (Optional) Set up additional responsibilities, users and any printers you will be using. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 55 ONLY. COPYING ekit MATERIALS FROM THIS

460 Create Folders Create Folders (Optional) Create folders on key forms to: Show fields that are not shown by default. If you don t see a field on a form that you think should be there, try using Folder Tools to see fields that are hidden by default. Hide fields that you do not need to enter data into and that you do not want to see. Note that not all fields can be hidden. Change column names on folders. Sort records displayed in folders in different orders. For example, you can sort orders by descending date to see the most recent orders first. Save a query with a folder. Change field lengths for columns in a folder. Move fields that you seldom or occasionally use to the right so data entry personnel do not needlessly tab through them. You can use the System Administrator responsibility to administrate folders. You can have specific folders default for different responsibilities or users. Set the Folders: Allow Customization profile option to allow or prevent customization of folders. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 56 ONLY. COPYING ekit MATERIALS FROM THIS

461 Note: Be careful with the positioning of dependent fields, in cases where: Fields have default values Fields have controls for later fields Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 57 ONLY. COPYING ekit MATERIALS FROM THIS

462 Agenda Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 58 ONLY. COPYING ekit MATERIALS FROM THIS

463 Reports Reports Employee Listing Use this report to create a list of employees that meet criteria you specify. Payment Terms Listing Use the Payment Terms Listing to review a complete list of the payment terms you have defined in the Payment Terms window. Tax Names Listing Use the Tax Names Listing to review rate and account information for tax names you defined in the Tax Names window. Tax Recovery Rules Listing Use the Tax Recovery Rules Listing to review all the tax recovery rules and rates that you defined in the Tax Recovery Rules window. The report lists all of the rates for each tax rule. Buyer Listing The Buyer Listing shows the buyer name, default purchasing category, ship-to location, and effective dates of all buyers or a selected set of buyers. You can also use the report to isolate buyers who are assigned to a category of procurement items. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 59 ONLY. COPYING ekit MATERIALS FROM THIS

464 Financials/Purchasing Options Listing The Financials/Purchasing Options Listing can be used to review the options set for your system in the Financials Options and Purchasing Options windows. This report also displays your receipt numbering options in the Receiving Options window, for each inventory organization. Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 60 ONLY. COPYING ekit MATERIALS FROM THIS

465 Reports Reports Location Listing The Location Listing shows internal organizations locations and addresses. Purchasing lets you specify which locations you want to review: Ship To, Bill To, Office, Internal, and Receiving. Use this report to isolate locations which are only for a specific function, such as locations where receiving is permitted. This document can be used as a resource when entering purchase order receiving locations. Quality Code Listing The Quality Code Listing shows inspection quality codes. You can use this listing to help assign quality codes when inspections are performed. Standard Notes Listing The Standard Notes Listing shows your standard notes and their start and end dates. Unit of Measure Class Listing The Unit Of Measure Class Listing shows the classes of measurement you have defined. A unit of measure class is a grouping of common units of measurement. For example, the standard Appendix A - Setup Steps THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 15 - Page 61 ONLY. COPYING ekit MATERIALS FROM THIS