Professional Documents
Culture Documents
This article will give you an outline of the steps to implement Oracle iProcurement using Punchouts.
I will try to cover as many steps for full cycle iProcurement implementation using Punchouts.
This is due to email requests & the comment requests that I received to write something on
iProcurement implementation.
What is a punchout?
In your iProcurement homepage, your suppliers can raise requisition to buy items like stationary.
By punchout, we integrate iProcurement with Suppliers website. From a users perspective below
steps take place:-
1. Buyer logs into iProcurement Homepage
2. Buyer then sees various suppliers for which punchouts are enabled [depending on their
security via realm & secured attributes]
3. Buyer clicks on a stationary supplier and browser displays supplier’s website.
4. Buyer selects the items on supplier website and adds them to his cart.
5. Buyer checks out the basket from Suppliers iStore [website]
This means, as soon as a Requisition is approved, the creation of Purchase Order is kicked off [rather than wait for workflow
background process]
You will also set the profile options to relate to those regions for Accounting KFF
POR: Edit Account Regions: POR_BILLING_CHARGE_ACCOUNT_R
POR: Multiple Account Regions: POR_BILLING_MULT_CHARGE_AC_R
Indicative Profile options for iProcurement [Assuming punchout implemented & no local
hosting of catalogs]
Profile Site Note
Once you have defined Approval Groups, you can use Approval Assignments screen to assign approval rules to Positions or Jobs
defined in HRMS.
Define Financial Options
In this screen, some of the fields are used for defaulting and some other fields for defining the behaviour of
iProcurement/Purchasing. The setup here is done per Operating Unit. Here within Accounting Tab, you specify accounts like
Liability, Prepayment, Discount accounts.
Also Specify the following here
- Whether supplier numbering is manual or automatic.
- Default payment terms for [say 1month], and default payment type like Electronic.
-Specify FOB, Default inventory location and ship to and bill to, freight etc
-Encumbrance :- specify whether you use encumbrance and the type
- Default tax code
-VAT registration number of Operating unit
Define locations
The locations/Office Address where your suppliers will deliver goods and also send invoices.
Define Employees
Use this screen in PO if you do not have full HRMS Suite installed, in which case you would be
using shared HR installed [cutdown version of HRMS to support Purchasing].
Define Buyers
Define the people that can use Application to create and approve documents.
Here you indicate, the type of Documents you wish to exchange with your suppliers using XML
You will also capture trading party’s DUNS numbers in this screen.
During the implementations you usually use testexchange.oracle.com.
The DUNS number for the supplier also needs to be entered in the EDI Location field against supplier site in Vendor Definition
Screen.
The DUNS number for your implementation client needs to be entered in the EDI Location field on Other Details section of Location
form for Client location[lets say your client for which iProc is being implemented is “XX Machine Inc”].
Process PO 007 is an OAG standard that dictates the structure of XML document which your supplier will receive.
For those that do not know, PO007 is nothing but an Approved Purchase Order sent to the supplier. Its format is XML.
To see its structure, on your middle tier, review the dtd file as listed below. $PO_TOP/xml/oag71/003_process_po_007.dtd
Hence Supplier needs to enable “PO 007” for themselves on the exchange server
For this your Supplier does the below steps:-
Login to the testexchange (i.e. exchange.oracle.com after testing during goLive).
Clicks on Transaction Delivery under Company Administration
Selects Sales Order Outbound (PROCESS_PO_007) [going out from Exchange, becoming sales order in Suppliers System]
Under transaction type they select delivery method HTTPS etc
They specify their URL on server which where exchange will post the PO 007 XML doc.... https://inboundpo...
They also need to specify other connection details to their server like port number, userid password etc.
Exchange server will use those credentials to connect and post the XML PO Document[PO 007]
Note: Oracle Exchange supports various protocols like http,https,smtp . The supplier selects a protocol based on the protocols their
server supports.
Oracle supports both cXML ad XML punchouts. Hence the supplier must support one of these two options.
Supplier does the following steps to enable punchouts:-
Logs in to TestExchange Server or the Exchange Server
Clicks on “setup punchout”
Enters their punchout URL, userid password for their iStore.
Select XML or cXML and then clicks on APPLY.
Supplier can then test whether their punchout setup works by punching out to their iStore from testexchange/exchange.
”XX Machine Inc” makes Oracle EBS aware of the Punchout setup
It is possible that with some suppliers, you would like to Punchout to their iStores via exchange, and for the other suppliers you may
like to punchout directly to their iStore.
I am detailing both the scenario’s below.
Scenario 2 Create Supplier punchout definition directly in Oracle Apps eCatalog Mgr
If you were not to be using Exchange, then you will have to create the Punchout definition from scratch in Oracle Apps itself.
For this, click on “Manage Content” in responsibility “Internet iProcurement Catalog Administrator”
Click on create catalog
NOTE: As you may have noticed, effectively we are trying to create a punchout definition in Oracle Apps…either by downloading the
Supplier’s punchout definition from exchange or by directly creating the Punchout definition in Oracle Apps.
For this Click on create store in responsibility “Internet iProcurement Catalog Administrator”
Further notes:-
1. Your suppliers punchout basket may contain items with UOMs that are not defined in Oracle Apps inventory module. In this case,
you must navigate to responsibility “eCommerce Gateway” and define those mappings using menu “Code Conversion Values”
2. As per the OAG format, the item category used in punchout baskets is 8 digit UNSPSC code. Effectively UNSPSC code is a
global code for item categories. However in Oracle EBS, we implement Item Categories using Key FlexField for Item Categories.
For a 3 segment Item category flexfield in inventory, your item category may look like AA.BB.CC. This value of AA.BB.CC must be
mapped with the UNSPSC codes that your suppliers will be sending for their item categories. This definition is mapped in the same
screen under “eCommerce Gateway”.