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Oracle Purchasing (PO)

Oracle Purchasing allows users to create requisitions for goods and services. Purchasing allows users to create, edit, and approve requisitions.

Oracle Human Resource Management System (HRMS) holds an employee hierarchy which can be used to define, for each employee, the supervisor who approves their requests.

When a user submits a requisition a workflow notification is sent to the user's supervisor for approval. The supervisor can approve or reject or request more information about the requisition, in which case the employee can resubmit the requisition and provide the requested information.

Oracle Purchasing allows users to check for funds before submitting the requisition for approval. Upon submission of the requisition, funds will be obligated.

Purchase Orders

Purchase orders can be created using an automatic import. Users have an option to choose the automatic or manual option while importing requisitions. Supplier and supplier site can be defaulted or can be manually selected.

Purchase Orders must also be approved. When users submit purchase orders for approval, the user's supervisor is identified and sent an approval notification. Supervisors can approve, reject or request more information.

New approved requisitions can be imported into existing purchase orders with approved lines. When users submit the purchase order, only the lines which require approval are notified to the supervisor.

Receipts

Once the employee receives the goods or services, a receipt needs to be created for the requisition. This confirms that the goods have been received and an invoice is to be expected from the supplier.

Oracle Purchasing allows creation of partial receipts as well. For example if a user creates a requisition for 10 computers, he can create a receipt for 5 computers if a partial shipment has been received.

Invoices

PO matching

There are three different forms of purchase order matching:

  • » 2-way matching ensures the Invoice and PO details match i.e. the Invoice Price & Quantity matches the PO Price and Quantity.
  • » 3-way Matching is the same except that it also matches the received Quantity with the Quantity billed.
  • » 4-way also matches Quantity Accepted (Quality Assurance) with the Quantity Billed.

The system is setup with one of the above options.

To create an invoice, choose the invoice type as Purchase order and provide the document number, which is the PO number. Oracle automatically creates the invoice and distribution lines with appropriate quantity and details.

Supply Base

Oracle Purchasing allows a company to maintain a catalogue of supplier items. This catalog provides a simple mechanism for locating items and sourcing information.

Suppliers can send their latest price/sales catalogue information and responses to requests for quotation through the Purchasing Documents Open Interface. The Purchasing Documents Open Interface processes catalogue data in the Oracle Applications interface tables to ensure that it is valid before importing it into Purchasing. One way to import catalogue data into the Purchasing Documents Open Interface, and finally into Purchasing, is through Electronic Data Interchange (EDI). EDI programs import the catalogue information into Purchasing directly as blanket purchase agreement lines or catalogue quotations.

All procurement organisations maintain lists that associate the items and services they buy with the companies who supply them, either formally or informally. Data stored in a controlled, global repository containing relevant details about each ship-from/ship-to/item relationship, is known as an Approved Supplier List (ASL).

Punch Out

This is a mechanism by which buyers can navigate to a Supplier's website straight from iProcurement. Once the shopping is finished, they then checkout the basket on the supplier's website following which the shopping basket is brought back to iProcurement. The shopping basket is nothing but a returned XML file that contains the list/quantity/price of items checked out from suppliers website.

The key advantages of this are:

  • » You do not need to maintain the pricing information of items; suppliers publish their latest pricing details in their Store.
  • » You do not need to upload the supplier's items into your system.
  • » The up-to-date stock level information is made available on the supplier's website.

Punch out can be done using Oracle Exchange Server also. However doing a direct punch out with the supplier's website is easy, although requires some configuration at the firewall.

Links - Oracle Purchasing