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ORACLE PURCHASING

Overview

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, Auto Create Request for Quotation
Quotation
Purchase Requisition
(RFQ)
A
u
t
o
C
Supplier
r
e
a
t
e

Purchase Order Returns Payments


Receipts
Content
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
Unit I : Supply Base Management

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 Quotation


Request for Quotation (RFQ)

Supplier
Information

Payments
Receipts Returns
Purchase Order
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 2 Contact 3 Contact 4 Contact 5 Contact 6

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.

Site-A Terms and Payment


conditions methods

Terms and Payment


Supplier Site-B
conditions methods

Site-C Terms and Payment


conditions methods

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.
ORACLE PURCHASING
Overview

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, Auto Create Request for Quotation
Quotation
Purchase Requisition
(RFQ)
A
u
t
o
C
Supplier
r
e
a
t
e

Purchase Order Returns Payments


Receipts
Content
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
Unit I : Supply Base Management

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 Quotation


Request for Quotation (RFQ)

Supplier
Information

Payments
Receipts Returns
Purchase Order
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 2 Contact 3 Contact 4 Contact 5 Contact 6

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.

Site-A Terms and Payment


conditions methods

Terms and Payment


Supplier Site-B
conditions methods

Site-C Terms and Payment


conditions methods

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
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
Unit I : Supply Base Management
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
Unit I : Supply Base Management

Overview:
Sourcing Rule

Bye from Bye from

Supplier A Supplier B

50% of the time


50% of the time
Rank 2
Rank 1

Refer to Profile option MRP: Default Sourcing Assignment Set

Define Create Assign sourcing


Sourcing Assignment Rule to Item
Rule for the set and then to
Supplier Assignment set

Navigation: Supplier Base -> Sourcing Rule


Unit I : Supply Base Management

Approved Supplier List:

Define ASL for each item, eneter Enter source document


Supplier name with business rule (Quotation/Blanket Order)
as direct and status as new/ approved/ details
Debar against each item and Against each item in the attribute
select Window, to enable to default
The source information while
creating Purchasing documents
Unit II : Requisitions
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
Oracle Modules

MRP WIP Demand INV OM

Oracle Purchasing Navigation:


Open Requisition Interface Table
(1) Requisitions-> .
Requisitions
(1) Manually
(2) Requisitions -> .
(3) Requisition Import
Requisitions->Catalog -> .
Create Requisition Refer to slide no 9 for .
further detail
Create Requisition Requisition
(3) Requests -> Select .
Approval
(2) Use Catalog as Requisition Import -> . Select
source Source

Requisition Pool
Unit III: RFQ & Quotations
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.


Request For Quotation
Manually create RFQ Navigation:
Supplier from Supplier List
RFQs and Quotations->RFQs
Supplier A
R
Enter RFQ Supplier B F

Supplier C
Q

Navigation: Auto Create-> find-> Select document type as RFQ


Autocreating RFQ
Auto
creation
R
Requisition Line Query existing lines Choose lines
Pool from query Manual
F
results creation
Q
Quotation

Manually enter
quotation

Quotation analysis for


approval / un approval

Copy document
from RFQ window
to create quotation

Navigation:
RFQs and Quotations->Quotations
RFQs and Quotations->Quotation analysis
Unit IV: Purchase Orders
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
Unit IV: Purchase Orders
Types of Purchase Orders : Standard, Blanket, Planned and Contract

Navigation: Purchase Orders ->


Purchase Orders.
Manually enter
Purchase Order

Submit for approval

Copy document
from Quotation
window to create
Purchase Order

Purchase Order Components

Document details Item or Service Supplier delivery Internal


(Header) details (Lines) (Shipments) distribution details
(Distributions)
Unit IV: Purchase Orders

Auto create Purchase Order : 1) .Standard PO, 2) Planned PO and 3) Blanket


Release
PU
Auto R
Select
creation C
lines
H
for auto
Query Choose lines AS
Requisition Line create Submit for
existing lines from query E
Pool approval
results O
Manual Add lines R
creation to D
order pad ER
for auto
create

Navigation: Auto Create-> find-> Select document type as 1 or 2 or 3


Automated Purchase Order
Prerequisite
INV / WIP/ 1) Set Profile option: PO: Release During ReqImport to yes
MRP &OM
2) Create ASL Click on attributes
Modules
with Business Select Automatic releases as
rule as direct Release Method & blanket
Open and source as Agreement as a
requisition Approved source document
interface table

Auto Approved Blanket


Requisition
releases Release
Import

Approved
requisitions

ASL: Approved Supplier List


Navigation: Supply Base ->ASL
Unit V: Receiving
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
D
Po lines with Receive items Transfer stock from
E
Standard to Receiving to
L
receipt routing Receiving Final delivery location
I
V
E
R
Po lines with Receiving items y
Direct directly into
receipt routing Final delivery location

Receive items Enter Transfer accepted


Po lines with
to Inspection items To final
Inspection
Receiving results delivery location
required

Return the rejected items back to supplier


Navigation: Receiving -> Receipts
Unit V: Receiving

Types of Receiving
Manual receipt
One line at a time

Express receipt
Multiple lines at one time
Per supplier

Cascade receipt One receipt of multiple


shipment of the same item
Per supplier
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
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
Unit I : Supply Base Management
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
Unit I : Supply Base Management

Overview:
Sourcing Rule

Bye from Bye from

Supplier A Supplier B

50% of the time


50% of the time
Rank 2
Rank 1

Refer to Profile option MRP: Default Sourcing Assignment Set

Define Create Assign sourcing


Sourcing Assignment Rule to Item
Rule for the set and then to
Supplier Assignment set

Navigation: Supplier Base -> Sourcing Rule


Unit I : Supply Base Management

Approved Supplier List:

Define ASL for each item, eneter Enter source document


Supplier name with business rule (Quotation/Blanket Order)
as direct and status as new/ approved/ details
Debar against each item and Against each item in the attribute
select Window, to enable to default
The source information while
creating Purchasing documents
Unit II : Requisitions
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
Oracle Modules

MRP WIP Demand INV OM

Oracle Purchasing Navigation:


Open Requisition Interface Table
(1) Requisitions-> .
Requisitions
(1) Manually
(2) Requisitions -> .
(3) Requisition Import
Requisitions->Catalog -> .
Create Requisition Refer to slide no 9 for .
further detail
Create Requisition Requisition
(3) Requests -> Select .
Approval
(2) Use Catalog as Requisition Import -> . Select
source Source

Requisition Pool
Unit III: RFQ & Quotations
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.


Request For Quotation
Manually create RFQ Navigation:
Supplier from Supplier List
RFQs and Quotations->RFQs
Supplier A
R
Enter RFQ Supplier B F

Supplier C
Q

Navigation: Auto Create-> find-> Select document type as RFQ


Autocreating RFQ
Auto
creation
R
Requisition Line Query existing lines Choose lines
Pool from query Manual
F
results creation
Q
Quotation

Manually enter
quotation

Quotation analysis for


approval / un approval

Copy document
from RFQ window
to create quotation

Navigation:
RFQs and Quotations->Quotations
RFQs and Quotations->Quotation analysis
Unit IV: Purchase Orders
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
Unit IV: Purchase Orders
Types of Purchase Orders : Standard, Blanket, Planned and Contract

Navigation: Purchase Orders ->


Purchase Orders.
Manually enter
Purchase Order

Submit for approval

Copy document
from Quotation
window to create
Purchase Order

Purchase Order Components

Document details Item or Service Supplier delivery Internal


(Header) details (Lines) (Shipments) distribution details
(Distributions)
Unit IV: Purchase Orders

Auto create Purchase Order : 1) .Standard PO, 2) Planned PO and 3) Blanket


Release
PU
Auto R
Select
creation C
lines
H
for auto
Query Choose lines AS
Requisition Line create Submit for
existing lines from query E
Pool approval
results O
Manual Add lines R
creation to D
order pad ER
for auto
create

Navigation: Auto Create-> find-> Select document type as 1 or 2 or 3


Automated Purchase Order
Prerequisite
INV / WIP/ 1) Set Profile option: PO: Release During ReqImport to yes
MRP &OM
2) Create ASL Click on attributes
Modules
with Business Select Automatic releases as
rule as direct Release Method & blanket
Open and source as Agreement as a
requisition Approved source document
interface table

Auto Approved Blanket


Requisition
releases Release
Import

Approved
requisitions

ASL: Approved Supplier List


Navigation: Supply Base ->ASL
Unit V: Receiving
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
D
Po lines with Receive items Transfer stock from
E
Standard to Receiving to
L
receipt routing Receiving Final delivery location
I
V
E
R
Po lines with Receiving items y
Direct directly into
receipt routing Final delivery location

Receive items Enter Transfer accepted


Po lines with
to Inspection items To final
Inspection
Receiving results delivery location
required

Return the rejected items back to supplier


Navigation: Receiving -> Receipts
Unit V: Receiving

Types of Receiving
Manual receipt
One line at a time

Express receipt
Multiple lines at one time
Per supplier

Cascade receipt One receipt of multiple


shipment of the same item
Per supplier