Purchase Orders
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Procurement: Purchase Orders
Requisitions
Supplier
identification
Purchase
orders
Ordering
RFQs/
Quotations
Sourcing
Receiving
Analysis
Invoice/
Payment
Supplier
management
Reporting
Supplier
performance
1-2
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Objectives
After completing this module, you should be able to do the
following:
• Create standard, blanket, global, contract, and planned
purchase documents
• Create purchasing document releases
• Understand purchasing document interfaces
• Maintain purchase orders
• Identify key reports
• Understand setup options
• Identify additional implementation considerations
1-3
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Agenda
•
•
•
•
•
•
•
•
•
•
•
1-4
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create global agreements
Create planned purchase orders
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key standard reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchasing Document Flow
Requisition
RFQ
Quote
Blanket
PA Release
Contract
PA
Standard
PO
1-5
Blanket
PA
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Creating Purchase Orders
Inventory
WIP
MRP
Order
Mgmt
Other
Systems
Demand
Import
Internal
order
Order
management
Approval
Requesters
Requisition
Demand
Workbench Purchase order
1-6
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Order Types
Standard
Purchase
Order (PO)
Planned
Purchase
Order
Blanket
Agreement
Contract
Agreement
Header
Header
Header
Header
Line
Line
Line
Shipment
Shipment
Distribution
Distribution
Standard PO
Global
Agreement
Header
Global
Agreement
Using global
agreements,
buyers can
negotiate
prices on
behalf of
multiple
organizations
within an
enterprise
Line
You create standard
purchase orders
when you know the
details of the goods
or services,
estimated costs,
quantities, delivery
schedules, and
accounting
distributions
1-7
Scheduled
Release
Planned
purchase orders
include tentative
delivery
schedules and
accounting
distributions.
Shipment
Shipment
Distribution
Distribution
Pricing on blanket purchase agreements can include
break pricing. You typically use this agreement
when negotiating volume discounts on individual
items.
Copyright © 2010, Oracle and/or its affiliates.
All rights reserved.
A master terms and
conditions document.
Typically use contract
purchase agreements
when negotiating
pricing on a volume of
business to manage
terms and conditions.
Quiz
The original copy of the purchase order you send to your
supplier is a legal offer to buy.
1. True
2. False
1-8
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Order Components and Record
Structure
Header
Lines
1
2
3
Shipments
1
1
2
1
Distributions
1
1-9
2
1
1
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
1
Purchase Order Document Structure
PO_HEADERS_ALL
PO_LINES_ALL
PO_
RELEASES_ALL
PO_LINE_LOCATIONS_ALL
PO_DISTRIBUTIONS_ALL
1 - 10
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Overview of Automatic Purchase Order Creation
In addition to manual entry,
documents can be
automatically created using:
• AutoCreate
• PO Create Documents
workflow
Demand Workbench •
Purchasing document
open interface
• Copy documents
• Oracle Sourcing
1 - 11
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
PO
Agenda
•
•
•
•
•
•
•
•
•
•
•
1 - 12
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create global agreements
Create planned purchase orders
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key standard reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Overview of Standard Purchase Orders
Buyer
Supplier
Purchase Order
- binding agreement -
1 - 13
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Default Value Hierarchy
Financials options
Purchasing and Receiving options
Supplier
Supplier site
2
Item
1
Purchasing Documents
1
1 - 14
Takes precedence over
2
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Simplify the Entry of Purchase Orders:
Preferences
Default Value Hierarchy
Preferences
Purchasing Documents
1 - 15
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Elements
Standard purchase orders
contain all four elements of
a purchasing document.
All purchase order types
represent some combination
of the basic elements of the
standard purchase order.
Standard Purchase
Order
HEADER
LINE
SHIPMENT
DISTRIBUTION
1 - 16
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Structure of a Simple Standard Purchase Order
HEADER
two items being
ordered (Line 1
and Line 2)
LINE 1
LINE 2
SHIPMENT 1
SHIPMENT 1
DISTRIBUTION 1
DISTRIBUTION 1
each item is charged to a single
charge account.
1 - 17
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Structure of a More Complex Standard Purchase
Order
HEADER
). Line 1, however, has
a single shipment with
multiple distributions
while line 2 has multiple
shipments
LINE 1
SHIPMENT 1
DISTRIBUTION 1
1 - 18
LINE 2
SHIPMENT 1
SHIPMENT 2
DISTRIBUTION 1
DISTRIBUTION 1
DISTRIBUTION 2
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Entering Standard Purchase Order Header
Information
Purchase Orders
PO Type: Select Standard
Purchase Order for this field.
PO Number
PO Type
Created Date
Supplier Name
Supplier Site
Supplier Contact
Ship To
Bill To
Currency
Buyer
Status
Total
Description
Line
Currency
1 - 19
Terms
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Orders Terms and Conditions
Document
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).
1 - 20
Terms
Special Conditions
• Payment
• Confirming Order
• Freight
• Firm
• Carrier
• Acceptance Required
• FOB
• Pay On
Notes
Pay On: If Receipt is
• Supplier
selected, an invoice will
• Receiver
be automatically
created for this
purchase order when
receipt of the goods
has been
acknowledged
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Entering Standard Purchase Order Lines Tabbed
Regions
The line portion of the standard purchase order is comprised of
four tabbed regions:
• Items
• Price Reference
• Reference Documents
• More
Items
1 - 21
Price Reference
Reference Docs & More
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Line Items Tabbed
Region
Standard Purchase
Order
Items
Num, Type, Item, Revision,
Category, Description,
UOM, Quantity, Price,
Promised, Need-By, Supplier
Item, Charge
Account, Amount
Price Reference
Reference Documents
More
It’s important that only supplier-provided dates be
Temporary
Labor
entered
in the Promise field, and non supplierprovided dates be entered only in the Need-By
date field. These dates will be used to measure
supplier performance related to delivery issues.
1 - 22
HEADER
LINE
SHIPMENT
DISTRIBUTION
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Line Price Reference
Tabbed Region
Items
Price Reference
Num, List Price,
Market Price, Price Type
Reference Documents
More
Temporary Labor
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.
1 - 23
Standard Purchase
Order
HEADER
LINE
SHIPMENT
DISTRIBUTION
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Line Reference
Documents Tabbed Region
Items
Price Reference
Reference Documents
Num, Contract, Quotation,
Line, Quotation Type,
Supplier Quotation
More
Temporary Labor
Standard Purchase
Order
HEADER
LINE
SHIPMENT
DISTRIBUTION
1 - 24
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Line More Tabbed
Region
Items
Price Reference
Reference Documents
More
Num, Note to Supplier,
UN Number, Hazard,
Capital Expense
Temporary Labor
Standard Purchase
Order
HEADER
LINE
SHIPMENT
DISTRIBUTION
1 - 25
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Line
Temporary Labor Tabbed Region
Items
Price Reference
Reference Documents
More
Temporary Labor
Standard Purchase
Order
HEADER
LINE
Name, Start & End date
SHIPMENT
DISTRIBUTION
1 - 26
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Line Reference
Documents Tabbed Region
Items
Price Reference
Reference Documents
Num, Contract, Quotation,
Line, Quotation Type,
Supplier Quotation
Standard Purchase
Order
HEADER
LINE
More
SHIPMENT
DISTRIBUTION
1 - 27
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Entering Standard Purchase Order Shipments Tabbed Regions
•
The shipment portion of the standard purchase order is
actually comprised of three tabbed regions:
– Shipments
– More
– Status
•
•
Must be at least one shipment for each line
Can be many shipments for each line
Shipments
1 - 28
More
Status
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Shipment Shipments
Tabbed Region
Shipments
More
Status
Num
Org/Ship-To
UOM/Quantity
Need-By
Promised Date/
Original
Promise
Charge
Account
Amount
1 - 29
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Shipment More Tabbed
Region
Shipments
More
Num
Receipt Close
Tolerance (%)
Invoice Close
Tolerance (%)
Invoice
Matching
Accrue on
Receipt
Status
Two-Way: Purchase order and invoice
quantities as well as purchase order and invoice
unit prices must match within tolerance before
the corresponding invoice can be paid. The
receipt close tolerance can be set to 0% to
allow the system to automatically close fully
received lines.
Three-Way: Purchase order, receipt, and
invoice quantities as well as purchase order and
invoice unit process must match within
tolerance before the corresponding invoice can
be paid.
Four-Way: Purchase order, receipt, accepted,
and invoice quantities as well as purchase order
and invoice unit prices must match within
tolerance before the corresponding invoice can
be paid.
Firm
1 - 30
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Shipment Status
Tabbed Region
Shipments
More
Status
Num
Status
Ordered
Received
Canceled
Billed
1 - 31
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Shipment Receiving
Controls Button
Standard Purchase
Order
HEADER
Receiving Controls
LINE
SHIPMENT
DISTRIBUTION
1 - 32
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Entering Standard Purchase Order Distributions Tabbed Regions
•
The distribution portion of the standard purchase order is
comprised of three tabbed regions:
– Destination
– More
– Project
•
•
Details required internally to generate accounting for the
shipment.
Must be at least one distribution for each shipment, but
can be many distributions for each shipment.
Destination
1 - 33
More
Project
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Distribution Destination
Tabbed Region
Destination
Num
Type
Requestor
Deliver-To/
Subinventory
More
Project
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.
Quantity
Charge Account
Accrual/Variance
Accounts
1 - 34
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Distribution More
Tabbed Region
Destination
More
Project
Num
Requisition
Number/Line
Online
1 - 35
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Standard Purchase Order Distribution Project
Tabbed Region
Destination
More
Project
Num
Project
Task
Expenditure
Type
Expenditure Org
1 - 36
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Supplier Document Attachments
Attachment Type
Supported
Notes to Supplier
Long/Short Text
Files (e.g. MS Word, Drawings)
URLS
ZIP files
1 - 37
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Approve Standard Purchase Order
Approve Document
X
Submit for Approval
Forward
Note
Print
Fax
E-Mail
EDI
XML
1 - 38
Fax Number
E-Mail Address
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
OK
Agenda
•
•
•
•
•
•
•
•
•
•
•
1 - 39
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create global agreements
Create planned purchase orders
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key standard reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
When to Use a Blanket Purchase Agreement
Blanket purchase
agreement
Header
Lines
Long-term agreement
Details of goods/services
are known
Blanket release
Shipment
Distribution
1 - 40
Dates of delivery are not known
Accounts and dollars are
not known
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Blanket Releases
Releases can be created:
• Manually
• Automatically
Manual
Demand
generated
outside
Purchasing
1 - 41
Requisition
Create Releases
Process
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Blanket
Release
Blanket Purchase Agreements Additional
Information Entered
Additional information is
entered for blanket purchase
agreements in the header, line
and price breaks purchase
order elements windows.
Blanket purchase
agreement
HEADER
LINE
PRICE BREAKS
1 - 42
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Blanket Purchase Agreements Additional
Information - Header
Header
Lines
Price Breaks
Amount Agreed
Released
Global
Terms and
Conditions
1 - 43
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Quiz
Blanket Releases can be created manually and automatically.
1. True
2. False
1 - 44
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Blanket Purchase Agreements Additional
Information - Lines
Header
Lines
Price Breaks
Items
Price Reference
Reference
Documents
More
Agreement
1 - 45
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Blanket Purchase Agreements Additional
Information - Price Breaks
Header
Lines
Price Breaks
Quantity
Effective dates
Break Price
Discount (%)
1 - 46
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Notification Controls
Blanket Purchase Agreement
• Amount Agreed $5,000,000
• Effective Dates Jan 1 to Dec 31
Amount Not Released
Amount Released
Expiration
50% in the
1st six months
$2M in the
1st three months
Three months
before expiration
1 - 47
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Approve Blanket Purchase Agreement
Approve Document
X
Submit for Approval
Forward
Note
Print
Fax
E-Mail
EDI
XML
Fax Number
E-Mail Address
OK
Approval is the last step in creating a Purchase Order.
1 - 48
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Blanket Purchase Agreement and Blanket
Releases
Release #/$s
Blanket Purchase
Agreement
1 - 49
Cumulative
Release $s
#101 $ 5,000
$ 5,000
#120 $12,000
$17,000
#208 $ 9,000
$26,000
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Blanket Releases Structure - Header
Release Header
Shipment 1
Distribution 1
1 - 50
Blanket #
Release #
Supplier/Site
Buyer
Status
Total
Acceptance Req’d
Distribution 2
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Blanket Releases Structure Shipments and
Distributions
Release Header
Tabbed Regions
Shipments
More
Status
Item
Tabbed Regions
Destination
More
Project
1 - 51
Shipment 1
Distribution 1
Distribution 2
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Agenda
•
•
•
•
•
•
•
•
•
•
•
1 - 52
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create global agreements
Create planned purchase orders
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key standard reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
When to Use a Contract Purchase Agreement
Contract Purchase Agreement:
• Terms and conditions are known
• Details of goods or services are not known
• Reference contract purchase agreements directly on
standard purchase order lines
Contract purchase
agreement
1 - 53
Standard PO 1
Delivery 1
Standard PO 2
Delivery 2
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Contract Purchase Agreements Additional
Information Entered
Additional information is entered
for contract purchase agreements
in the header element window.
Once the contract is approved,
you issue standard purchase
orders referencing the contract
through the Line windows/Reference
Documents tabbed region.
Contract Purchase
Agreement
Header
Standard PO
Header
Line
Shipment
Distribution
1 - 54
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Creating Global Contract Agreements
Global agreements are an extension of contract
purchase agreements that allow pricing to extend
outside of the operating unit.
• Begin by creating a contract purchase agreement
– Select the global checkbox
– Enter terms
– Save the agreement
•
1 - 55
Enable the agreement in all organizations that will use this
supplier, supplier site, and item(s)
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Agenda
•
•
•
•
•
•
•
•
•
•
•
1 - 56
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create planned purchase orders
Create global agreements
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key standard reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Center-Led Procurement
Request
Source
Buy
Vision Services
R+D
(Requesting Org)
Vision Operations
(GA Owning Org)
Singapore
Distribution Center
(Purchasing Org)
1 - 57
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Pay
Global Agreements
Global agreements are an extension of blanket
purchase agreements that allow pricing to extend
outside of the operating unit.
• Begin by creating a blanket purchase agreement
– Select the global checkbox
– Enter items, pricing, and terms
– Save the agreement
•
1 - 58
Enable the agreement in all organizations that will use this
supplier, supplier site, and item(s)
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Global Agreements
Create global agreements to:
• Negotiate prices on behalf of multiple
organizations
• Share the agreement across multiple
organizations
• Process purchase orders based on the
global agreement
Process
Purchase Orders
1 - 59
Share
Agreements
Negotiate
Prices
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Buyer/Seller
Create Global
Agreement
Creating and Using a Global Agreement
Create Global
Agreement
Enable Agreement for
Multi-Organizations
View and Use
Global Agreement
1 - 60
Create Standard
Purchase Order
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Define Local
Attributes
Global Agreements – Impact Areas
Global Agreements affect the following Purchasing
functionality:
• Requisitions, Catalogs and Standard Purchase Orders
• Vendor based global Approved Supplier Lists
• Automatic Document Sourcing
1 - 61
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Agenda
•
•
•
•
•
•
•
•
•
•
•
1 - 62
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create global agreements
Create planned purchase orders
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key standard reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
When to Use a Planned Purchase Order
•
•
•
Dates of delivery are tentatively scheduled.
Goods to be purchased must be specified.
Actual purchases occur when a scheduled release is
issued.
Tentative: June 1
Planned
purchase
order
1 - 63
Release 1
Delivery 1
Release 2
Delivery 2
Tentative: July 1
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Components of a Planned Purchase Order
Planned
purchase order
Header
Lines
Scheduled release
Shipment
Long-term agreement
Details of goods/services
are known
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
Scheduled
ofadelivery
standard
purchase dates
order is that
delivery schedule is
entered and the actual purchase order is created by running
the Create Releases process.
Distribution
1 - 64
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Planned Purchase Order Information Entered
Additional information is
entered for planned purchase orders
in the shipment window.
Planned purchase
order
HEADER
LINE
SHIPMENTS
1 - 65
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Agenda
•
•
•
•
•
•
•
•
•
•
•
1 - 66
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create global agreements
Create planned purchase orders
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key standard reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Order Summary
•
Use the Purchase Order Summary window
– Optionally create a custom user layout of form
•
Use the Tools menu to view associated
–
–
–
–
•
Requisitions
Receipts
Invoices
Action History
Use the Purchase Order window
– Find functionality
– Query functionality
1 - 67
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Modifying Purchase Orders
You can access and modify your purchase orders
•
Reapproval Rules
•
Revision numbering of purchase orders
– PO #1245
– PO #1245-1 1st revision
– PO #1245-2 2nd revision
1 - 68
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Printing Purchase Orders
•
•
Only approved purchase orders can be printed
From the Submit for Approval window:
– Default communication method checked according to
supplier definition
•
Select the Printed Purchase Order report from the Reports
menu
Printed purchase order
1 - 69
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Creating Purchase Order Revisions
Two Archiving options
At the time of
approval
1 - 70
At the time of
printing
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Document Publishing
1 - 71
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Archiving Purchase Orders
Action
Step 1: Create/save PO
Approval
Archive
Current
Revision Revision
Printing
Archive Current
Revision Revision
None
0
None
0
Step 2: Approve PO
0
0
0
0
Step 3: Change quantity
0
1
0
0
Step 4: Reapprove PO
1
1
0
0
Step 5: Print PO
1
1
0
0
Step 6: Add an item
1
2
0
1
Step 7: Reapprove PO
2
2
1
1
Step 8: Print PO
2
2
1
1
1 - 72
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Order Statuses - Typical Cycle
Submit for Approval
Requires Reapproval
Incomplete
In Process
On Hold
Rejected
No
Approve?
Frozen
Yes
Closed
Pre-Approved
No
Open
Approve?
Yes
Canceled
Approved
Finally Closed
Changes Made
1 - 73
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Entering Purchase Order Acceptances
•
•
•
•
•
1 - 74
Action
Action Date
Accepted By
Accepted
Acceptance Type
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Workflow Notifications
PO#325
Kevin Jones
Incomplete
Electronic
notification
PO#325 requires your attention.
Kevin
Its status is Incomplete.
REQ#577
Sue Smith
Requires
Reapproval
REQ#583
Joe Holt
Rejected
1 - 75
Electronic
notification
REQ#577 requires
your reapproval.
Sue
REQ#583 has
been rejected.
Joe
Electronic
notification
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Copying Purchase Orders
FROM
Standard purchase order
Blanket purchase agreement
Planned purchase order
Bid quotation
(Bid quotation class)
Self-defined bid quotation (Bid
quotation class)
Catalog or standard quotation
(Catalog quotation class)
Self-defined catalog or
standard quotation
(Catalog quotation class)
Global agreement
1 - 76
TO
Standard purchase order
Blanket purchase agreement
(standard or global)
or RFQ
Planned purchase order
Standard or planned
purchase order
Standard or planned
purchase order
Blanket purchase agreement
Blanket purchase agreement
Global agreement
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Services Procurement
Services Procurement:
• Automates procure to pay flow from requisition creation to
sourcing to payment
• Supports integration with Human Resources Management,
Time and Labor, and Project Management
• Enables you to perform business tasks such as:
– Assigning time cards to multiple projects
– Assigning more than one purchase order to a contingent
worker
– Creating time cards for multiple purchase orders
•
•
1 - 77
Uses Oracle Purchasing data to convert approved service
requisitions into purchase orders
Automatically creates invoices from service receipts
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Agenda
•
•
•
•
•
•
•
•
•
•
•
1 - 78
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create global agreements
Create planned purchase orders
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key standard reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Document Interfaces
You may need to import purchasing documents
from sources outside of Oracle Purchasing:
• Purchasing Document Open Interface
You may need to update existing purchasing
documents from one of your custom created
programs:
• Purchasing APIs
1 - 79
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchasing Documents Open Interface
Catalog
quotations
1
Standard
PO
Load
Open
interface
X12 832, 843
Documents
1 - 80
Blanket purchase
agreement lines
Items
Workflow
2
Process
Sourcing rules
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Document Import Validation
The import process derives some details if they are not
already provided.
Options
Item master
Supplier
Document detail
1 - 81
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchasing Open Interface Tables
Interface
Name
Data Flow
Direction
Table,
Table, View, or Module name
View, or
Process
Requisitions
Inbound
Table
PO_REQUISITIONS_INTERFACE_ALL
PO_REQ_DIST_INTERFACE_ALL
Purchasing
Documents
Inbound
Table
PO_HEADERS_INTERFACE
PO_LINES_INTERFACE
Receiving
Inbound
Table
RCV_HEADERS_INTERFACE
RCV_TRANSACTIONS_INTERFACE
1 - 82
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchasing APIs
Application program interface (API) is a software transaction
connector for a specific function within Oracle Purchasing:
• Purchasing Order Change API
• Cancel Purchase Order API
• Custom Pricing API
1 - 83
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Agenda
•
•
•
•
•
•
•
•
•
•
•
1 - 84
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create global agreements
Create planned purchase orders
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key standard reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Order Reports
•
•
•
•
•
•
1 - 85
Blanket and Planned PO Status Report
Canceled Purchase Orders Report
Contract Status Report
Open Purchase Orders Report (by Buyer)
Open Purchase Orders Report (by Cost Center)
Printed Change Orders Report (Landscape)
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Order Reports
•
•
•
•
•
•
1 - 86
Printed Change Orders Report (Portrait)
Printed Purchase Order Report (Landscape)
Printed Purchase Order Report (Portrait)
Purchase Agreement Audit Report
Purchase Order Commitment by Period Report
Purchase Order Detail Report
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Order Reports
•
•
•
•
1 - 87
Purchase Order Distribution Detail Report
Purchase Order and Releases Detail Report
Purchase Summary Report by Category
Purchasing Activity Register
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Agenda
•
•
•
•
•
•
•
•
•
•
•
1 - 88
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create global agreements
Create planned purchase orders
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key standard reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Important Purchasing Options
Control
Price Tolerance
Enforce Price
Tolerance
Amount
Tolerance %
Default
Minimum Release
Amount
Price Break Type
Numbering
PO Number
- Entry
- Type
- Next Number
Cancel
Requisitions
Enforce Buyer
Name
PO Output
1 - 89
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Important Profile Options
PO: Price Tolerance (%) for Catalog Updates
Current Price
Adjusted Price
Approved with
3% Price Tol
% Increase
$ 2.00/each
$ 2.05/each
2.5%
Yes
$10.00/each
$14.00/each
4%
No
Blanket #901?
OR
Blanket #901/Rev #1?
PO: Archive Catalog
on Approval
Original
Changes
PO: Change Supplier Site
Site A
1 - 90
Site B
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
PO Communication Profile Options
•
•
•
1 - 91
PO: Secondary E-mail Address
PO: In File Path
PO: Terms and Conditions File Name
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Other Setups
•
Buyer List
Buyers
Buyer
Name
Buyers
Jane
Purchase
Order
Bill
•
•
Hazard Classes
UN Numbers
Mike
1 - 92
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Transaction Delivery Setup
There are several options available for delivery of Oracle
Purchasing documents to the supplier.
• Print and deliver
• Fax (Facsimile)
• E-Mail (Electronic Mail)
• EDI (Electronic Data Interchange)
• XML (eXtensible Markup Language)
1 - 93
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Printed Purchase Orders
Standard text based or fully formatted PDF files:
• Standard text can be customized to print on pre-printed
forms using Oracle Reports
• PDF output:
– Configure format templates by organization or document
type
– Include watermarks or logos
– Approval preview
– Communicate using email or mail
– View revisions in PDF
1 - 94
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchasing Document Fax Setup Overview
FCL
Oracle ERP
applications
server
1 - 95
Fax
Fax server
Supplier
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchasing Document E-Mail
Setup Overview
Internet
PO Create
Documents
and
Workflow
mailer
1 - 96
Supplier
receives
purchase
order
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Oracle e-Commerce Gateway Overview
Supplier’s EDI
translator
Buyer
Value Added
Network (VAN)
Supplier’s
application
server
Buyer’s EDI
translator
Oracle
Applications
1 - 97
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Supplier
Purchase Order EDI Transactions
•
Outbound:
– Purchase Order (850/ORDERS)
– Purchase Order Change (860/ORDCHG)
•
Inbound:
– Price/Sales Catalogue (832/PRICAT)
– Response to Request for Quotation (843/QUOTES)
1 - 98
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Oracle XML Gateway Overview
Oracle
XML
Gateway
Buyer
sends
purchase
order
Oracle
Transport
Agent
XML
Parser
Transport
Layer
Supplier
receives
purchase
order
XML document sent through Internet hub (like Oracle
Exchange) or direct through secure Internet connection
1 - 99
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Order XML Transactions
Purchase orders can be sent to a supplier using the following
XML transactions:
• Purchase Order (PROCESS_PO_007)
• Release against Blanket PO (PROCESS_PO_007)
• Purchase Order Change (CHANGE_PO_006)
1 - 100
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Retroactive Price Changes
How to setup:
• Profile Option PO: Allow Retroactive Pricing of POs
• Set Archive on Approve for document
How to use:
• Update pricing information on agreement
• Choose Retroactive Pricing options before submitting the
document for approval
• Optionally run Retroactive Price Update of Purchasing
Documents process
1 - 101
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Agenda
•
•
•
•
•
•
•
•
•
•
•
1 - 102
Overview of purchase orders
Create standard purchase orders
Create blanket purchase agreements
and releases
Create contract purchase agreements
Create global agreements
Create planned purchase orders
Maintain/adjust purchase orders
Purchasing Document Interfaces
Identify key reports
Understand setup options
Review additional implementation considerations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Responsibility for Purchase Order Entry and
Maintenance
•
•
•
Assign responsibility for purchase order entry
and maintenance
Number of staff required when operational
Consider good internal control and segregation
of duties
4 Buyers
Create PO’s
Update status
1 - 103
2 Jr. Buyers
Supplier Inquiry
Research past due shipments
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
1 Clerk
Updates PO
contacts
Purchase Order Integration Issues
•
•
Who is affected by purchase orders?
Document decisions with sign-off by
Authorized Approver
Purchasing
Inventory
Payables
1 - 104
Mfg Planning
Assets
Receiving
Accounting
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Creating Purchase Orders and Releases
8 doz pens
1 chair
REQ
#963
11 doz pens
1 chair
2 bxs clips
1 waste can
1 copier
- trade-in
Release
#1201
REQ
#978
REQ
#981
1 - 105
3 doz pens
2 bxs clips
1 waste can
1 copier
- trade-in
Purchase
Order #1219
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Order Numbering Options
•
Two choices
– Automatic (numbers only)
– Manual (alphanumeric or numeric)
•
Switch from manual to automatic
– Ensure that Next Automatic Number is larger than the largest
number assigned
Automatic
2114
2115
2116
2117
1 - 106
Manual
A-103
B4326
A-103-2
99
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Purchase Order Conversion Methodology
•
•
•
•
•
Purchasing Documents Open Interface
Which purchase orders to convert
Method to convert
Data cleanup required prior to conversion
Conversion reconciliation method and
reports needed
Automated
Closed
Open
Interface
IBM
Manual Entry
Open
1 - 107
Tile Co
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Electronic Transaction Delivery
Considerations for electronic delivery of Oracle Purchasing
documents to the supplier.
• Fax (Facsimile)
• E-Mail (Electronic Mail)
• EDI (Electronic Data Interchange)
• XML (eXtensible Markup Language)
1 - 108
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Integrated Oracle Products
Consider the possible implications of using other
Oracle self service products to enhance the purchase
order business process:
• Oracle iProcurement
– Automate common purchases
– Self service ordering and receiving
•
Oracle iSupplier Portal
– Supplier self service acknowledgements
– Supplier self service quotations
•
Oracle Sourcing
– Supplier driven auctions
1 - 109
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Summary
You should now be able to do the following:
• Create standard, blanket, global, and contract
purchase documents
• Create blanket purchase agreement releases
• Maintain purchase orders
• Identify key reports
• Understand setup options
• Understand additional implementation considerations
1 - 110
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.