ORACLE PURCHASING

AUTHOR:Vijay
Oracle Purchasing is a comprehensive procurement solution designed to help purchasing
professionals to manage the procurement process at Right Price and in Right time and to develop
strategic supplier relationships.
Development of strategic supplier relationships
requisitions,
Purchase Requisition
Supplier
Request for Quotation
(RFQ)
Quotation

Receipts
Payments Returns Purchase Order
Au
t o
Cr
ea t
e
Auto Create
Overview
Unit I : Supply Base Management
Supplier Information
Supplier List
Sourcing Rule
Approved Supplier List
Automatic Sourcing
Supplier Item Catalog


Unit II : Requisitions
Requisition Templates
Purchase Requisitions.
Internal Requisitions
Managing Buyer Workload

Unit III : Request For Quotation and Quotation
Entering RFQs
Auto create
Entering Quotations
Quote Analysis

Content
Unit IV : Purchase Orders
Standard Purchase Orders
Planned Purchase Orders and Planned Releases
Blanket Purchase Agreements and Blanket Releases
Contract Purchase Orders
Auto Create Purchase Orders and Releases
Automatic Release Generation

Unit V : Receiving
Advance Shipment Notices (ASNs)
Managing Receipts:Direct, Standard and Inspection
Unordered,Cascade and Express Receipts
Receiving Transactions
Returns
Corrections


Content
Key Features
Create and rank approved supplier lists by item or commodity
Associate supplier item numbers with internal parts
Prevent purchases from unapproved suppliers
Compare actual volume to target volume by supplier
Assess supplier price, service, and quality performance
Create request for quotations (RFQ) automatically from on-line requisitions
Create Purchase Orders automatically from on-line requisitions
Define custom supplier quotation lists for RFQs
Create supplier quotations automatically from RFQs, or enter them directly
Analyze quotations and decide which should be available to reference on requisitions and
purchase
orders (POs)
Access and reference your catalog/quotation information on-line while creating documents
Unit I : Supply Base Management
Supplier information is a vital part of Oracle Purchasing and is used in all components of
procurement, beginning with the requisition request through to the payment for goods or services
received. User need to define a supplier before performing any activities within Oracle
Purchasing.

Purchase Requisition
Request for Quotation (RFQ)
Quotation

Receipts
Payments
Returns
Purchase Order
Supplier
Information
Unit I : Supply Base Management
Supplier sites and Contacts:
User can identify multiple business sites for each supplier and enter specific purchasing details for
each site. In addition, user can identify an unlimited number of contacts for each site.
User can decide to which site or sites the invoices and purchase orders are sent. In addition , user can
designate a site to receive only requests for quotation, until user certify the supplier as a purchasing
site.













Supplier
Site-A Site-B Site-C
Contact 1 Contact 3 Contact 4 Contact 5 Contact 6
Contact 2
Navigation : Supply Base-> Suppliers
Navigation: Supplier Base -> Supplier
Unit I : Supply Base Management
Site- Specific Information :
User has the ability to identify terms and conditions, purchase details and payment information for
each supplier site.












Terms and
conditions
Site-B
Site-C
Site-A
Payment
methods
Terms and
conditions
Terms and
conditions
Payment
methods
Payment
methods
Supplier
Supplier Item Catalogue:
The Supplier Item Catalog provides a simple mechanism for locating items and their source
information for the purpose of creating purchase order and requisition lines. User can open the catalog
from an existing requisition or purchase order and add lines to that document. Alternatively, user can
open the catalog from the Navigator and search for item information from there.
The Supplier Item Catalog does not support Outside Processing.
Unit I : Supply Base Management
Supplier List :
Supplier Lists window will be used to enter and edit supplier lists. User can copy suppliers from the
supplier lists onto the RFQ supplier list while creating Request For Quotation (RFQ).
Sourcing Rule:
User can define sourcing rules that specify how to replenish items in an organization, such as purchased
items in plants. Sourcing rules can also specify how to replenish all organizations, as when the entire
enterprise gets a subassembly from a particular organization.
Refer to Profile option MRP: Default Sourcing Assignment Set
This profile option indicates which sourcing rules assignment set will be used in Purchasing and
Supplier Scheduling. Therefore, the Assignment Set name user choose for this profile option is the
Assignment Set name should specify when user assign sourcing rules in the Sourcing Rule/Bill of
Distribution Assignments window. This profile option must be set if you are using sourcing rules in
Purchasing.
Refer to Profile option MRP: Sourcing Rule Category Set If sourcing rule is used in Purchasing, this
profile needs to be set to the name of the default category set used by Purchasing.
Approved Supplier List:
This repository includes information about all suppliers with business statuses including Approved,
Debarred, or New. Use the Approved Supplier List and Supplier Item Attributes windows to specify
blanket purchase agreements or quotations as source documents for a particular item and supplier or
particular item category (commodity) and supplier. Purchasing automatically defaults this source
document information,
Unit I : Supply Base Management
Unit I : Supply Base Management
Automatic Sourcing:
Automatic sourcing automatically defaults sourcing information onto the requisitions, blanket purchase
orders, or quotations you create. User can easily assign any item with an item number to a specific
blanket purchase agreement or quotation created. Purchasing automatically assigns the name of the
supplier for the blanket purchase order and quotation to any requisition for this item.
Refre to Profile Option - Po:Automatic Document Sourcing , Yes means that Purchasing
automatically defaults source document and pricing information for an item from the most recently
created blanket purchase agreement or quotation. No means that this source document information
comes from the Approved Supplier List window, where you must specify which source documents to
use.
Supplier Item Catalog: The Supplier Item Catalog provides a simple mechanism for locating items
and their source information for the purpose of creating purchase order and requisition lines. You can
open the catalog from an existing requisition or purchase order and add lines to that document.
Alternatively, you can open the catalog from the Navigator and search for item information from there.
Navigation: Requisition/Purchase Orders Windows->click on Catalog button-> click on find
button-> select the appropriate tabbed region (Negotiated sources, Prior Purchases, Sourcing
Rule and Requisition Template.)->Select the down arrow to place the line on to order pad->
Select Select the Select button to add the order pad lines to the requisition or purchase order
from which you accessed the catalog.
Refer to profile option PO: Default Supplier Item Catalog Option, determines which of these
tabbed regions is the default when the catalog opens from the menu. Attention: The supplier Name and
Site, if you specify one, must match the sourcing rule Supplier and Site to default the supplier
information or source document information successfully.

Unit I : Supply Base Management
Define
Sourcing
Rule for the
Supplier
Create
Assignment set
Assign sourcing
Rule to Item
and then to
Assignment set
Overview:

Sourcing Rule
Bye from Bye from
Supplier A Supplier B
50% of the time Rank
1
50% of the time Rank
2
Refer to Profile option MRP: Default Sourcing Assignment Set
Navigation: Supplier Base -> Sourcing Rule
Unit I : Supply Base Management
Unit I : Supply Base Management
Approved Supplier List:
Define ASL for each item, eneter
Supplier name with business rule
as direct and status as new/ approved/
Debar against each item and
select
Enter source document
(Quotation/Blanket Order) details
Against each item in the attribute
Window, to enable to default
The source information while
creating Purchasing documents
Key Features
Create, edit, and review requisition information on line. User should also be able to enter
suggested supplier information,delivery instructions, multiple accounting distributions, and notes
to buyers, approvers, and receivers.
Review the current status and action history of requisitions.User should always know who
approves requisitions and whether they are in the approval, purchasing, receiving, or delivery
stage.
Perform on line funds checking before creating requisitions. User should always know how
planned expenses compare to budget.
Access supplier/item catalogs to create documents
Distribute expenses across multiple cost centers, projects, or departments
Use multiple currencies
Build account distributions automatically
Use requisition templates for frequently requested items
Import requisitions from other systems such as material or distributions requirement planning
applications.
Create internal requisitions that are sourced from your inventory by means of an internal
sales order.
Unit II : Requisitions
Purchase Requisitions
With on-line requisitions, user can easily centralize the purchasing department, source the
requisitions with the best suppliers.
user can use Oracle Master Scheduling/MRP and Oracle Inventory to generate on-line requisitions
automatically based on replenishment requirements. user can use Oracle Work in Process to
generate on-line requisitions for outside processing requirements.
Internal Requisitions
Internal requisitions provide the mechanism for requesting and transferring material from inventory
to other inventory or expense locations. Oracle Purchasing, Oracle Order Entry, and Oracle
Inventory combine to give a flexible solution for inter-organization and intra-organization requests.
Requisition Template :
Templates automate requisitioning of commonly ordered items like office supplies.
To create a template, user can specify the items individually or they can reference an existing
requisition or purchase order. If user reference an existing document, Purchasing adds all lines on
the document to the template. You can reference multiple documents to add all their lines to the
same template.
After user define a template, user can reference the template in the Supplier Item Catalog. When
user do so, Purchasing displays all template lines that are valid for the destination organization.

Unit II : Requisitions
Requisition Import:
Using Requisition Import, user can import requisitions from other Oracle Applications or from non
Oracle systems. Requisition Import lets user integrate Purchasing with new or existing applications.
Master Scheduling/MRP, Work In Process, Order Management, and Inventory all provide requisition
information to the requisition interface table from which Requisition Import creates requisitions.


Unit II : Requisitions
Create Requisition
(2) Use Catalog as
source
(3) Requisition Import
Requisition
Approval
Requisition Pool
Open Requisition Interface Table
Oracle Purchasing
MRP
WIP INV OM Demand
Oracle Modules
(1) Manually
Create Requisition
Navigation:
(1) Requisitions-> .
Requisitions
(2) Requisitions -> .
Requisitions->Catalog -> .
Refer to slide no 9 for .
further detail
(3) Requests -> Select .
Requisition Import -> . Select
Source

Unit II : Requisitions
Request For Quotation and Quotation :
Purchasing provides user with request for quotation (RFQ), and quotation features to handle sourcing
needs. User can create an RFQ from requisitions, match supplier quotations to user RFQ, and
automatically copy quotation information to purchase orders.
Purchasing provides complete reporting to control your requests for quotations and evaluate supplier
responses.
Identify requisitions that require supplier quotations and automatically create a request for quotation.
Quotation :
Use the Quotations window to: Enter and edit quotations, Review and edit quotations you copied
from RFQs.
Quote Analysis: Use this window to approve the quotation.

Unit III: RFQ & Quotations
Requisition Line
Pool
Query existing lines
Choose lines
from query
results
Auto
creation
Manual
creation
R
F
Q
Manually create RFQ
Supplier from Supplier List
Supplier A
Supplier B
Supplier C
Enter RFQ
R
F
Q
Autocreating RFQ
Navigation:
RFQs and Quotations->RFQs
Navigation: Auto Create-> find-> Select document type as RFQ
Request For Quotation
Manually enter
quotation
Copy document from
RFQ window to
create quotation
Quotation analysis for
approval / un approval
Navigation:
RFQs and Quotations->Quotations
RFQs and Quotations->Quotation analysis
Quotation
Key Features:
Auto Create POs from on-line requisitions.
Consolidate and centralize purchase requirements from multiple warehouses, plants, or
locations.
Create POs in any currency.
Create standard purchase orders and blanket purchase agreements from both on-line and paper
requisitions.
Source a single requisition line from two or more suppliers
Define purchasing contracts and reference them on Pos.
Check funds availability while creating purchase orders so user always know how their
planned expenses compare with budget
Build account distributions automatically.
Create POs for different types of items including services and one-time purchases.
Provide multiple shipment schedules per PO line.
Access sourcing and inventory information on-line while building Pos.
Review the status and history of purchase orders at any time for all the information user need.
Freeze, cancel, or final close POs to control future transactions.
Record supplier acceptances.
Unit IV: Purchase Orders
Standard Purchase Orders:
User can create standard purchase orders for one-time purchases of items or services from a supplier.
Each standard purchase order can have multiple lines. Each purchase order line can have multiple
shipments distributed across multiple accounts. User can reference contract purchase agreement numbers
on the lines of standard purchase order.
Planned Purchase Orders:
User can create planned purchase orders manually. A planned purchase order is a combination of a
standard purchase order and a blanket purchase agreement. It includes tentative delivery information and
accounting distributions for goods or services that user want to buy over a period of time. User can later
issue scheduled releases against the planned purchase order to place the actual order. If user use
encumbrance accounting, user can use the planned purchase order to reserve funds for long term
agreements.
Blanket Purchase Agreements:
User can quickly define blanket purchase agreements for specific items and associated price breaks.
Blanket purchase agreements allow stable pricing over the life of the agreement while allowing flexible
delivery schedules and order quantity commitments as user release against the blanket.
Contract Purchase Agreements:
User can create contract purchase agreements containing master terms and conditions for a supplier and
then reference the contract number on the line of a standard purchase order. Oracle Purchasing monitors
the total amount you have spent against the contract purchase agreement.
Unit IV: Purchase Orders
Item or Service
details (Lines)
Supplier delivery
(Shipments)
Document details
(Header)
Internal
distribution details
(Distributions)
Types of Purchase Orders : Standard, Blanket, Planned and Contract
Manually enter
Purchase Order
Copy document from
Quotation window to
create Purchase Order
Submit for approval
Purchase Order Components
Navigation: Purchase Orders ->
Purchase Orders.

Unit IV: Purchase Orders
Auto create Purchase Order :
P U
R C
H A
S E
O R
D E
R
Requisition Line
Pool
Query existing
lines
Choose lines
from query
results
Auto
creation
Manual
creation
Submit for
approval
Select
lines
for auto
create
Add lines
to
order pad
for auto
create
1) .Standard PO, 2) Planned PO and 3) Blanket
Release
Navigation: Auto Create-> find-> Select document type as 1 or 2 or 3
Unit IV: Purchase Orders
Prerequisite
Requisition
Import
Auto releases
Open
requisition
interface table
Approved requisitions
Click on attributes
Select Automatic releases as
Release Method & blanket
Agreement as a
source document
1) Set Profile option: PO: Release During ReqImport to yes
Approved Blanket Release
2)
INV / WIP/
MRP &OM
Modules
ASL: Approved Supplier List
Navigation: Supply Base ->ASL
Automated Purchase Order
Create ASL
with Business
rule as direct
and source as
Approved
Oracle Purchasing let user to control the items they order through receiving, inspection, transfer, and
internal delivery. User can use these features of Oracle Purchasing to control the quantity, quality, and
internal delivery of the items you receive.
Key Features:
Use routing controls to enforce material movement through receiving; for example, User can require
inspection for some items and dock-to-stock receipt for others
Control the quantity of items user receive, the acceptable delivery window, and acceptable receipt
location with tolerances that user specify
Optionally require blind receiving.
Receive individual shipments or all items with a few keystrokes.
Inspect items and evaluate supplier quality performance.
Specify two, three, or four-way matching.
Record receipt of unordered items based on user item, supplier, or organization defaults; for
example, if user organization does not allow receipt of unordered items, user can prevent entry of a
receipt unless it is matched to an order shipment
Record receipt of substitute items based on user order, item, supplier, or organization defaults
Return items to the supplying supplier
Correct receiving transaction errors
Unit V: Receiving
Return Material Authorizations (RMAs)
User can use Purchasing receiving functionality to receive goods returned by their customers. These
are goods for which a sales order in Oracle Order Management was created. If the customer wishes to
return the goods, the sales representative creates a return material authorization (RMA) authorizing
the return. When the return arrives at user receiving dock, user can create a receipt against the RMA as
other receipt, inspect the return, return the repaired goods to the customer, and make receiving
corrections.
Advance Shipment Notices (ASNs)
An Advance Shipment Notice (ASN) is transmitted via Electronic Data Interchange (EDI) from a
supplier to let the receiving organization know that a shipment is coming. The ASN contains details
including shipment date, time, and identification number; packing slip data; freight information; item
detail including cumulative received quantities; country of origin; purchase order number; and
returnable container information.
Receiving Locations
Receiving locations are designated areas in which user temporarily store items before deliver them to
their final destinations. Receiving dock and the area in which items are inspected are receiving
locations. Receiving locations are not required when the routing is Direct Receipt,

Unit V: Receiving
Unordered Receipts
User can receive items from a supplier when they do not have a corresponding purchase order. User
can also receive returned items from a customer that were issued on a sales order in Order
management and do not have RMA. First receive the items as Unordered Receipts in the Receipts
window. User can create a new receipt or add to an existing receipt for the supplier or customer who
shipped the unexpected items. Then perform a standard receipt for the unordered item shipment
quantity.
Then use the Match Unordered Receipts window to specify the purchase order or RMA number,
release, line, and shipment schedule to which user want to match the unordered receipt.

Express and Cascade Transactions
Purchasing offers two functions to facilitate transaction entry: Express and Cascade. In Express mode,
user cannot modify default quantities, but they can record the delivery of many receipts at once.
Cascade mode is applicable only for receipts for the same item. In cascade mode, Purchasing starts
with the first receipt and enters deliveries for each subsequent receipt for this item until the cascade
quantity is met.

Unit V: Receiving
Po lines with
Standard
receipt routing
Receive items
to
Receiving
Transfer stock from
Receiving to
Final delivery location
Po lines with
Direct
receipt routing
Po lines with
Inspection
required
D
E
L
I
V
E
R
y
Receiving items
directly into
Final delivery location
Receive items
to
Receiving
Enter
Inspection
results
Return the rejected items back to supplier
Transfer accepted
items To final
delivery location
Unit V: Receiving
Navigation: Receiving -> Receipts
Manual receipt



Express receipt



Cascade receipt

One line at a time



Multiple lines at one time
Per supplier

One receipt of multiple
shipment of the same item
Per supplier
Types of Receiving
Unit V: Receiving
ORACLE PURCHASING