R12 EBS ORACLE PURCHASE OVERVIEW AND FEATURES AND FUNCTIONS

2. Multi Organization
2
Ledger
Inventory
org.
Operating
unit
Inventory
org.
Operating
unit
Inventory
org.
Operating
unit
Operating
unit
Inventory
org.
Inventory
org.
Legal
entity
Legal
entity
Purchasing

3. Procurement Cycle
Payment
Purchase order
Supplier
Request for
quote (RFQ)
Receipts
Purchase
requisition
Demand Source
Order Pay
Quotation
Receive

4. Purchasing Use of Supplier Information
4
Payment
Purchase
order
Supplier
RFQ
Receipts
Requisition Quotation
Returns
Supplier information is a vital
component of Oracle Purchasing.
You must define a supplier before
performing most activities within
Oracle Purchasing. The following
examples list the areas in which
you use suppliers.
•A recommended supplier is
optionally entered on a
requisition.
•A supplier is needed to send a
request for quote.
•That same supplier is used when
entering a quotation.
•Purchase orders need supplier
information.
•You receive goods or services
from a supplier.
•You return goods to a supplier.
•You must pay the supplier for the
goods or services purchased.

5. Demand: Requisitions
5
Approval
Requisition
Manually
create Requisition
pool
Order Mgmt
Internal
sales order
PO
Import/reschedule
requisitions
Inventory WIP ASCP
Demand
Order
Mgmt
Other
Systems

6. Demand: Requisitions
6
 Requisition is of 2 types
• Internal Requisition
• Purchase Requisition
 Request Can be for Items or
Services
 Quantity , Need by date can
be specified
 Justification can be provided
 Note to Buyer can be given
 Note to Receiver can be
specified
 Destination can be Inventory
or Expense
 In case of Expense Item the
Expense code can be modified.
 Approval can be through
Predefined Hierarchy

7. Requisition Summary
7
 Requisition Summary provides
summarized view of Requisitions and can be
queried based on date range, Creator wise,
Item wise etc
 Summary can be viewed at Header , Line
or Distribution level.
 Folder option helps in Showing/Hiding
relevant/Irrelevant fields.
 PO Number will be visible in Requisition
once it is raised.
 Ability to Cancel/Close Requisition

8. Source: RFQs and Quotations
8
Requisition
pool
Quotation
Manual
Print/Send RFQ
RFQ
Oracle Sourcing
or iSupplier Portal
Supplier
lists
Supplier

9. RFQ
9
 RFQ can be Auto created from Purchase
Requisition thereby saving data entry time.
 Following can be specified
• Close date
• Effectively date
• Tentative Price
• Minimum/Maximum Qty
 Suppliers to whom RFQ is to be floated
can be based on Predefined Supplier list.
 Suppliers can also be individually
specified without list.

10. Quotation
10
 RFQ is converted to Quote.
 Supplier and Price mentioned in Quote
 Price Break can be entered
 Quote Analysis available
 Approval

11. Ordering Process
11
Requisition
pool
Receive against PO Match invoices in
Payables
Automatically create
Maintain documents
Accept Revise Control
PO
Manually create
Approve

12. Auto create
12
Purchasing provides automatic creation capabilities for documents.
Buyers can quickly create standard purchase orders, planned purchase orders, blanket releases, and RFQs
from available purchase requisition lines.
The purchase requisition lines can be for predefined items or one-time items
Auto creating documents can be as simple as selecting requisition lines and adding a supplier and letting
Purchasing do the rest.
Requisition’s can be modified , Returned to requestor , Split

13. Purchase Order - Types
13
Oracle Purchasing supports four types of purchase orders:
1. Standard - You generally create standard purchase orders for one-time purchase of various items. You create standard
purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery
schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may be encumbered
since the required information is known.
2. Blanket - You create blanket purchase agreements when you know the detail of the goods or services you plan to buy
from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket
purchase agreements to specify negotiated prices for your items before actually purchasing them.
3. Contract - You create contract purchase agreements with your suppliers to agree on specific terms and conditions
without indicating the goods and services that you will be purchasing. You can later issue standard purchase orders
referencing your contracts, and you can encumber these purchase orders if you use encumbrance accounting.
4. Planned - A planned purchase order is a long-term agreement committing to buy items or services from a single
source. You must specify tentative delivery schedules and all details for goods or services that you want to buy,
including charge account, quantities, and estimated cost.
Standard Purchase Order Planned Purchase Order
Blanket Purchase
Agreement
Contract Purchase
Agreement
Terms and Conditions Known Yes Yes Yes Yes
Goods or Services Known Yes Yes Yes No
Pricing Known Yes Yes Maybe No
Quantity Known Yes Yes No No
Account Distributions Known Yes Yes No No
Delivery Schedule Known Yes Maybe No No
Can Be Encumbered Yes Yes Yes No
Can Encumber Releases N/A Yes Yes N/A

14. Purchase Order
14
With Oracle Purchasing, you can:
Review all of your purchases with
your suppliers to negotiate better
discounts.
Create purchase orders simply by
entering a supplier and item details.
Create standard purchase orders
and blanket releases from both on-
line and paper requisitions.
Create accurate and detailed
accounting information so that you
charge purchases to the appropriate
departments.
Review the status and history of
your purchase orders at any time for
all the information you need.
Record supplier acceptances of
your purchase orders. You always
know whether your suppliers have
received and accepted your purchase
order terms and conditions.
Copy existing purchase orders.

15. PO Status
15
Submit for Approval
In Process
Approve?
Approved
Rejected
Requires Re approval
Cancelled
No
Changes made
Incomplete
Final Close
Yes

16. Purchase Order Approval & Document Routing
16
Online Approval and Security options enforce approval
Hierarchy
Control Document route according to Management
Structure
•Position Hierarchy
•Employee/Supervisor
Control Document route according to ability to approve

17. Position Hierarchy
17

18. Receiving
18
Inventory
Order Entry
Internal
shipment Inspect
Transfer
Shop floor
Inventory
Supplier
Shipment
Expense
Receive Deliver

19. Receiving
19
With Oracle Purchasing the following can be achieved:
Record the receipt of ordered and unordered items.
Increase Receiving Accuracy through Blind Receiving Functionality
Using Cascade Functionality to speed up receiving process
Transfer inbound material to final destinations.
Inspect inbound material to ensure conformance to specifications and quality levels.
Record returns to suppliers.
Correct receipt errors
Receive substitute items
Receive unordered items
Review your transaction history
Keep accurate counts of received material and receiving transaction history
Monitor and control the quality of inbound material

20. Receipt Types
20
Direct
Destination type: Inventory,
Expense, or Shop Floor
Receive
Standard
Destination type:
Receiving
Final
destination
Location
Location
Location
Inspection
Inspection
Inspection
Final
destination

21. Automated Invoicing
21
Receipt
By packing slip
By receipt
Payment
Oracle
Payables
Delivery
Pay on options: Invoice consolidation
options:
By site

22. Approved Supplier List
22
Ship-to
organization or
global organizations
Commodity
Approved
Supplier List Items
Supplier site

23. Approved Supplier
23

24. Sourcing Rule
24

25. Work Bench
25

26. 26
Thank You