R12 Oracle Purchasing Fundamentals Ed 1

Transcription

1 R12 Oracle Purchasing Fundamentals Ed 1 Volume 1 - Student Guide D49874GC10 Edition 1.0 August 2007 D52107 THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ONLY. COPYING ekit MATERIALS FROM THIS

2 Copyright 2007, Oracle. All rights reserved. This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy and print this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way. Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display, perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorization of Oracle. The information contained in this document is subject to change without notice. If you find any problems in the document, please report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California USA. This document is not warranted to be error-free. If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the United States Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS The U.S. Government s rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restricted by the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract. Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. Author Vic Mitchell, Dee Fairbanks Simpson Technical Contributors and Reviewers Marilyn Montgomery, Barbara Nicholls, Barbara Snyder, Sharon Tennier This book was published using: oracletutor THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ONLY. COPYING ekit MATERIALS FROM THIS

3 Table of Contents Procure to Pay Lifecycle Overview Procure to Pay Lifecycle Overview Objectives Procure to Pay Lifecycle Oracle Procure to Pay Process Demand: Requisitions Source: RFQs and Quotations Suppliers Purchase Orders Receiving Invoicing Payment Overview of Oracle Application Integration Summary Oracle Purchasing Overview Oracle Purchasing Overview Procure to Pay: Procurement Objectives Agenda Overview of the Ordering Process Demand as Requisitions Requisition to Purchase Order The Purchase Order Process The Receiving Process Center-Led Procurement Agenda Purchasing Integration E-Business Foundation Purchasing Integration with General Ledger Purchasing Integration with Human Resources Purchasing Integration with Payables Purchasing Integration with Inventory Applications Technology Foundation Purchasing Integration with Oracle Alert Purchasing Integration with Oracle Workflow Purchasing Integration with e-commerce Gateway Procurement Suite Purchasing Integration with Oracle iprocurement Purchasing Integration with Oracle isupplier Portal Purchasing Integration with Oracle Sourcing Purchasing Integration with Services Procurement Purchasing Integration with Procurement Contracts E-Business Suite Purchasing Integration with Projects Purchasing Integration with WIP Purchasing Integration with Order Management Purchasing Integration with Quality Purchasing Integration with Advanced Pricing Purchasing Integration with ASCP/MRP Purchasing Integration with Assets Purchasing Integration with Consigned and Vendor Managed Inventory Purchasing Open Interfaces and APIs Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM i ONLY. COPYING ekit MATERIALS FROM THIS

4 Guided Demonstration - Oracle Integration Repository E-Business Suite Setup Practice Practice - Create a New Employee and User Solution - Create A New Employee and User Practice - Set Yourself Up As a Buyer Guided Demonstration - Run the Fill Employee Hierarchy Process Summary Enterprise Structure Locations, Organizations, and Items Enterprise Structure Locations, Organizations, and Items Objectives Agenda What is Enterprise Structure? The Oracle Enterprise Structure Ledger Components Oracle Purchasing and the Enterprise Structure Oracle Inventory Organizations Agenda Defining Locations Examples of Locations Defining Locations in Purchasing Practice - Create a Location Solution - Create a Location Agenda Inventory Organizations Inventory Organization Setup Defining an Inventory Organization Financial Impact of Inventory Parameters Purchase Price Variance Invoice Price Variance Practice - Create an Inventory Organization Solution - Create an Inventory Organization Agenda Define Units of Measure Unit of Measure Setup Steps Define Unit of Measure Classes and Units of Measure Examples of Unit of Measure Classes and Units of Measure (UOM) Unit of Measure Conversion Practice - Define a Unit of Measure Solution - Define a Unit of Measure Agenda Item Categories Create Item Category Codes Describing and Using Category Sets Establish the Relationship Between the Category, Category Set and Item Practice - Create a Purchasing Category Solution - Create a Purchasing Category Agenda What is an Item? Oracle Applications That Use Items Flow of Default Values Item Attributes Item Master Organization and Inventory Organizations Overview of Creating an Item Item Templates Describing Item Attributes - Inventory Describing Item Attributes - Purchasing Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ii ONLY. COPYING ekit MATERIALS FROM THIS

5 Describing Item Attributes - Receiving Practice - Create Purchasing Items Solution Create Purchasing Items Defining Item Relationships - Purchasing Agenda Additional Setup Considerations Multiple Organizations Access Control Setup Set Profile Options Enterprise Structure Summary Suppliers Suppliers Procure to Pay: Suppliers Objectives Agenda Overview of Suppliers Purchasing Use of Supplier Information Flow of Default Values Agenda Supplier Record Structure Entering Standard Supplier Basic Information Supplier Company Profile Supplier Profile - Organization Supplier Profile Address Book Supplier Sites Supplier Profile Contact Directory Supplier Profile Business Classification Supplier Profile - Banking Details Guided Demonstration - Set up a Bank Supplier Terms and Control Supplier Profile - Accounting Supplier Profile - Tax and Reporting Supplier Profile - Purchasing Supplier Profile - Receiving Supplier Profile Payment Details Supplier Profile Invoice Details Suppliers Quick Update Page Supplier Level Versus Site Level Entry Practice - Create a Supplier With Two Sites Solution - Create a Supplier With Two Sites Agenda Maintaining Supplier and Supplier Site Information Avoiding Duplicate Suppliers Merging Suppliers Data Example - Supplier Merge Merging Suppliers Reports Agenda Supplier Reports Agenda Financials Options: Supplier-Purchasing Financials Options: Human Resources Supplier Lookup Codes Profile Options Agenda Responsibility for Supplier Entry/Maintenance Supplier Naming Conventions Supplier Naming Convention Examples Supplier Numbering Options Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM iii ONLY. COPYING ekit MATERIALS FROM THIS

6 Supplier Conversion Methodology Setup of Fax or isupplier Portal: Supplier Self-Service Summary Document Security, Routing and Approval Document Security, Routing and Approval Procurement: Purchasing Documents Objectives Agenda Overview of Document Security, Approval and Routing Agenda Document Security Levels Document Access Levels Agenda Document Approval - Jobs and Positions Guided Demonstration - Create a Position (Optional) Document Routing Option #1: Employee/Supervisor Relationship Document Routing Option #2: Position Approval Hierarchy Guided Demonstration - Add the Position to the Hierarchy Position Approval Hierarchies Guided Demonstration - Add the Position to the Hierarchy Document Types - Approval Settings Document Types - Control Creating Approval Groups Approval Groups - Illustration Guided Demonstration - Create Approval Groups Assigning Approval Groups Guided Demonstration - Create Approval Group Assignments Enter People Run Fill Employee Hierarchy Process Practice - Set Up Document Routing and Approval Solution - Set Up Document Routing and Approval Selecting Approval Paths Agenda Reports Agenda Financial Options Oracle Workflow Global Supervisor/Approver Agenda Additional Implementation Considerations What if...? Additional Implementation Considerations What if...? (Contd.) Strengths and Weaknesses of Approvals Using the Employee/Supervisor Relationship Strengths and Weaknesses of Approvals Using Position Approval Hierarchies Oracle Approval Manager for Requisitions Summary RFQs and Quotations RFQs and Quotations Procurement: RFQs & Quotations Objectives Agenda RFQs and Quotations Agenda Request for Quotation RFQ Lifecycle Send Notifications Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM iv ONLY. COPYING ekit MATERIALS FROM THIS

7 RFQ Types Supplier List Practice - Create a Supplier List Solution - Create a Supplier List RFQ Structure RFQ Header RFQ Lines RFQ Price Breaks/Shipments Practice - Create a Catalog RFQ Solution - Create a Catalog RFQ Agenda Quotations Quotation Lifecycle Send Notifications Quotation Types Quotation Structure Quotation Header Quotation Lines Quotation Price Breaks/Shipments Quotation Approvals Practice - Create a Catalog Quote from an RFQ Solution - Create a Catalog Quote from an RFQ Agenda RFQ and Quotations Reports Agenda Purchasing Options RFQ and Quotations Lookup Codes RFQ and Quotations Profile Options Agenda Additional RFQ and Quotations Implementation Considerations Summary Approved Supplier Lists and Sourcing Rules Approved Supplier Lists and Sourcing Rules Procurement: Supplier Identification Objectives Overview of Sourcing in Purchasing Agenda Approved Supplier Lists Supplier Statuses Practice - Create an Approved Supplier List Status Solution - Create an Approved Supplier List Status ASL Common Header Attributes ASL Header Attributes - Item ASL Header Attributes - Commodity Supplier-Commodity/Item Attributes Supplier-Commodity/Item Attributes Source Document Supplier-Commodity/Item Attributes Supplier Scheduling Supplier-Commodity/Item Attributes Planning Constraints Practice - Require an Approved Supplier for an Item Solution - Require an Approved Supplier for an Item Practice - Create an Approved Supplier List Solution - Create an Approved Supplier List Practice - Understand ASL Precedence Agenda Sourcing Rules Overview Sourcing Rules Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM v ONLY. COPYING ekit MATERIALS FROM THIS

8 Oracle Products That Use Sourcing Rules Create a Sourcing Rule Create a Sourcing Rule Assignment Levels of Sourcing Rule Assignments Sourcing Rules with an ASL Source Document Sourcing Rules without an ASL Source Document Default Sourcing Information to Requisitions Default Sourcing Information to Standard Purchase Orders Automatic Sourcing Enablement During Blanket Agreement Approval Practice - Create a Sourcing Rule and a Sourcing Rule Assignment Solution - Create a Sourcing Rule and a Sourcing Rule Assignment Practice - Enable Automatic Document Sourcing Solution - Enable Automatic Document Sourcing Generate Sourcing Rules and ASLs from Blanket Agreements Concurrent Program Agenda Sourcing Profile Options Agenda Additional Sourcing Implementation Considerations Summary Requisitions Requisitions Procurement: Requisitions Objectives Agenda Where Purchase Requisitions Fit Manual Requisitions from Purchasing and iprocurement Purchasing Document Flow Requisition Lifecycle Send Requisition Notifications Agenda Requisition Structure Default Value Hierarchy Requisition Preferences Requisition Header Requisition Line Requisition Line (Cont.) Requisition Distribution Allocating Costs to Multiple Charge Accounts Submitting Requisitions for Approval Approving Requisitions Practice - Create a Purchase Requisition Solution - Create a Purchase Requisition Requisition Actions Oracle Purchasing Supplier Item Catalog Using the Supplier Item Catalog Requisition Templates Practice - Create a Requisition Template Solution - Create a Requisition Template Practice - Use the Supplier Item Catalog to Create a Requisition Solution - Use the Supplier Item Catalog to Create a Requisition Agenda Internally Sourced Requisitions Overview Internal Requisition Integration Internal Requisitions: Setup Requirements Internal Requisition Process Controlling Requisition Sourcing Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM vi ONLY. COPYING ekit MATERIALS FROM THIS

9 Creating Internal Sales Orders Creating Internal Sales Orders with OrderImport Internally Sourced Requisitions Prerequisites Practice - Create Internal Requisitions Solution Create Internal Requisitions Agenda Requisitions Open Interface Oracle Inventory and Requisition Import WIP Outside Processing Oracle Master Scheduling/MRP and Requisition Import Master Scheduling/MRP Group By Requisition Import Process Requisition Import Validation Requisition Groups Requisition Groups: MRP Example Purchasing Open Interface Tables Agenda Requisition Reports Agenda Purchasing Options Purchasing Options (Cont.) Document Types Lookup Codes Expense Account Rules Profile Options Agenda Requisition Implementation Considerations Additional Requisition Implementation Considerations Summary Purchase Orders Purchase Orders Procurement: Purchase Orders Objectives Agenda Purchasing Document Flow Creating Purchase Orders Purchase Order Types Purchase Order Components and Record Structure Purchase Order Document Structure Overview of Automatic Purchase Order Creation Agenda Overview of Standard Purchase Orders Default Value Hierarchy Simplify the Entry of Purchase Orders: Preferences Standard Purchase Order Elements Structure of a Simple Standard Purchase Order Structure of a More Complex Standard Purchase Order Entering Standard Purchase Order Header Information Standard Purchase Orders Terms and Conditions Entering Standard Purchase Order Lines Tabbed Regions Standard Purchase Order Line Items Tabbed Region Standard Purchase Order Line Price Reference Tabbed Region Standard Purchase Order Line Reference Documents Tabbed Region Standard Purchase Order Line More Tabbed Region Standard Purchase Order Line Temporary Labor Tabbed Region Entering Standard Purchase Order Shipments - Tabbed Regions Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM vii ONLY. COPYING ekit MATERIALS FROM THIS

10 Standard Purchase Order Shipment Shipments Tabbed Region Standard Purchase Order Shipment More Tabbed Region Standard Purchase Order Shipment Status Tabbed Region Standard Purchase Order Shipment Receiving Controls Button Entering Standard Purchase Order Distributions - Tabbed Regions Standard Purchase Order Distribution Destination Tabbed Region Standard Purchase Order Distribution More Tabbed Region Standard Purchase Order Distribution Project Tabbed Region Supplier Document Attachments Approve Standard Purchase Order Practice - Create a Standard Purchase Order Solution - Create a Standard Purchase Order Agenda When to Use a Blanket Purchase Agreement Blanket Releases Blanket Purchase Agreements Additional Information Entered Blanket Purchase Agreements Additional Information - Header Blanket Purchase Agreements Additional Information - Lines Blanket Purchase Agreements Additional Information - Price Breaks Notification Controls Approve Blanket Purchase Agreement Blanket Purchase Agreement and Blanket Releases Blanket Releases Structure - Header Blanket Releases Structure Shipments and Distributions Center-Led Procurement Creating Global Blanket Agreements Practice - Create a Blanket Purchase Agreement and Blanket Release Solution - Create a Blanket Purchase Agreement and Blanket Release Agenda When to Use a Contract Purchase Agreement Contract Purchase Agreements Additional Information Entered Standard Purchase Order Line Reference Documents Tabbed Region Creating Global Contract Agreements Practice - Create a Contract Purchase Agreement Solution - Create a Contract Purchase Agreement Agenda When to Use a Planned Purchase Order Components of a Planned Purchase Order Planned Purchase Order Information Entered Agenda Purchase Order Inquiry Modifying Purchase Orders Printing Purchase Orders Creating Purchase Order Revisions Document Publishing Archiving Purchase Orders Purchase Order Statuses - Typical Cycle Entering Purchase Order Acceptances Workflow Notifications Copying Purchase Orders Agenda Purchase Document Interfaces Purchasing Documents Open Interface Purchase Document Import Validation Purchasing Open Interface Tables Purchasing APIs Agenda Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM viii ONLY. COPYING ekit MATERIALS FROM THIS

11 Purchase Order Reports Purchase Order Reports (Cont.) Agenda Important Purchasing Options Important Profile Options PO Communication Profile Options Other Setups Transaction Delivery Setup Printed Purchase Orders Purchasing Document Fax Setup Overview Purchasing Document Setup Overview Oracle e-commerce Gateway Overview Purchase Order EDI Transactions Oracle XML Gateway Overview Purchase Order XML Transactions Retroactive Price Changes Agenda Responsibility for Purchase Order Entry and Maintenance Purchase Order Integration Issues Creating Purchase Orders and Releases Purchase Order Numbering Options Purchase Order Conversion Methodology Electronic Transaction Delivery Integrated Oracle Products Summary Automating Document Creation Automating Document Creation Procurement: Purchase Orders Objectives Agenda Creating Purchase Documents from Requisitions Benefits of using AutoCreate Overview of AutoCreate Automatic Creation Mode Find Requisition Lines Select Document Creation Criteria Select Requisition Lines Select Automatic Creation Mode Autocreate New Document Window Manual Creation Mode Add to Existing Document Modify Requisition Lines Return Requisition Lines Practice - Return a Requisition Solution - Return a Requisition Practice - AutoCreate a Purchase Order Solution - AutoCreate a Purchase Order Agenda Benefits of using the Create Releases Program Overview of the Create Releases Program Automatic Release Generation Running the Create Releases Program Create Releases Document Creation Prerequisites Practice - Create Releases using the Create Releases Program Solution - Create Releases using the Create Releases Program Agenda Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM ix ONLY. COPYING ekit MATERIALS FROM THIS

12 Benefits of Automatic Document Creation using Workflow Overview of Automatic Document Creation using Workflow Workflow Document Creation Overview Workflow Document Creation Prerequisites Practice - Automatically Create a Standard Purchase Order based on your Quotation Solution - Automatically Create a Standard Purchase Order based on your Quotation PO Create Documents Workflow Setting Key Workflow Attributes Workflow Document Creation Summary Agenda Automatic Document Creation Profile Options Agenda Additional Implementation Considerations Oracle Sourcing and Document Creation Summary Professional Buyer's Work Center Professional Buyer's Work Center Objectives Procure to Pay: Procurement Agenda What is the Professional Buyer's Work Center? Business Benefits of the Buyer's Work Center Buyer's Work Center Overview Guided Demonstration - Introduce the Buyer's Work Center Agenda Demand Workbench and Requisition Summary Demand Workbench Requisition Views Create A Personalized Requisition View Practice - Create a Personalized Requisition View Solution - Create a Personalized Requisition View Requisition Summary Managing Requisitions in the Buyer's Work Center Agenda Default and Personalized Order Views Order Details Document Styles Guided Demonstration - Creating and Using Document Styles Creating a Purchase Order in the Buyer's Work Center Unified Procurement Catalog Access Agenda Default and Personalized Agreement Views Agreement Details Creating a Purchase Agreement in the Buyer's Work Center Uploading Blanket Agreement Lines Practice - Create a Purchase Order in the Buyer's Work Center Solution - Create a Purchase Order in the Buyer's Work Center Practice - Create a Purchase Agreement in the Buyer's Work Center Solution - Create a Purchase Agreement in the Buyer's Work Center Agenda Buyer's Work Center Profile Options Requisition Management Key Profile Options Enhanced Catalog Access Setup Preferences Agenda Additional Implementation Considerations Oracle Sourcing and Document Creation Summary Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM x ONLY. COPYING ekit MATERIALS FROM THIS

13 Receiving Receiving Procurement: Purchase Orders Objectives Agenda What is Receiving? Overview of Receiving Locations Agenda Overview of Receipt Routing Direct Receipt Routing Standard Receipt Inspection Required Oracle Process Quality Integration Agenda Receipt Processing Methods Standard Receipt Express Receipt Cascade Receipt ASNs and ASBNs Desktop Receiving in iprocurement Entering Expected Receipts Receipt Structure Receipt Header Receipt Line Practice - Create a Standard Receipt Solution - Create a Standard Receipt Practice - Create an Express Receipt Solution - Create an Express Receipt Practice - Create a Cascade Receipt Solution - Create a Cascade Receipt Control the Receiving Transaction Processor Receiving Tolerances Control Numbers Agenda Substitute Receipts Unordered Receipts Overview of Returns and Corrections Entering Returns Entering Corrections Comparing Returns and Corrections Practice - Inspect and Deliver a Receipt Solution - Inspect and Deliver a Receipt Overview of Pay on Receipt Agenda Receiving Open Interface (ROI) ROI Supported Transactions Load the Receiving Open Interface Receipt Import Validation Purchasing Open Interface Tables Agenda Receiving Reports Receiving Reports (Cont.) Agenda Purchasing Options Receiving Options Receiving Options (Cont.) Receiving Profile Options Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xi ONLY. COPYING ekit MATERIALS FROM THIS

14 ASN and ASBN Electronic Receipts Agenda Additional Implementation Considerations Summary Purchasing Accounting Purchasing Accounting Objectives Agenda Overview of the Procure to Pay Period Close Close the PO Period Steps Close the PO Period Business Flow Agenda Key Accounts in Procure to Pay Accrual Accounting Perpetual Accrual (On Receipt) Accrual Reconciliation Process Accrual Accounting Periodic Accrual (Period End) Accounting for Mass Additions Periodic Accrual (Period End) Accounting for Payments with Cash in Transit (Cash Clearing) Accounting for Payments without Cash in Transit (Cash Clearing) Agenda Foreign Currency in Purchasing Exchange Rate Overview Currency Similarities Between Requisitions and Purchase Orders Currency Differences Between Requisitions and Purchase Orders Requisitions and Automatically Created Purchase Orders Using Foreign Currency Approving Requisitions and Purchase Orders Using Foreign Currency Invoice Currency Matching Agenda Reports Reports (Cont.) Agenda Financials Options Purchasing Options Payables Options Agenda Purchasing Accounting Implementation Considerations Summary Purchasing Administration Purchasing Administration Objectives Agenda Maintaining Your Oracle Purchasing Database Records Integration with Payables What is MassCancel? Using Purchasing MassCancel The Define MassCancel Listing Purge Overview Preparing for a Purge Purge Category Inclusion Conditions for a Purge: Purchasing Conditions for a Purge: Payables Purge Reports Restarting or Aborting a Purge Purge Summary Information Recommendations for Efficient Purging Agenda Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xii ONLY. COPYING ekit MATERIALS FROM THIS

15 Start Concurrent Managers Schedule Background Processes Schedule Other Processes Agenda Purge: Issues to Consider Summary Appendix A - Setup Steps Appendix A - Setup Steps Objectives Agenda Setting Up Purchasing Define Users for Setup Tasks Define a Ledger Define Human Resources Key Flexfields Set Address Style Default Define Locations Define Organizations Create Responsibilities Set Key Profile Options Convert to Multi-Org Set Up Descriptive Flexfields Define Purchasing Lookups and Codes Define Payment Terms Define Tax Define Freight Carriers Define Financials Options Define Inventory Key Flexfields Set Up Shorthand Aliases Define Units of Measure Define Standard Attachments Define Item Attributes, Codes, and Templates Define Category Codes and Category Sets Define Catalog Groups Define Subinventories Define Cross-Reference Types Define Jobs, Positions, and Position Hierarchies Define Personnel Define Approval Groups and Assignments Define Buyers Set Up Document Types Define Lookup Codes and Classes Define Line Types Define Purchasing Options Define Receiving Options Set Address Style Default Define Suppliers Set Up Credit Card Programs Define Items Modify Account Generator Set Up Workflow Options Start Concurrent Managers Schedule Background Processes Set Up Sourcing Rules and Assignments Open Accounting Periods Perform Additional System Administration Create Folders Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xiii ONLY. COPYING ekit MATERIALS FROM THIS

16 Agenda Reports Reports (Continued) Agenda Profile Options (Required) Profile Options (Recommended) Profile Options (Review) Profile Options (Overlooked) Summary Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xiv ONLY. COPYING ekit MATERIALS FROM THIS

17 Preface Profile Before You Begin This Course Thorough knowledge of Oracle Applications Working experience with procurement Prerequisites Oracle Applications Foundations How This Course Is Organized This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations and written practice sessions reinforce the concepts and skills introduced. Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xv ONLY. COPYING ekit MATERIALS FROM THIS

18 Related Publications Oracle Publications Title Oracle Purchasing User s Guide Oracle Payables User s Guide Oracle Inventory User s Guide Oracle Manufacturing APIs and Open Interfaces Manual Part Number See Oracle Metalink See Oracle Metalink See Oracle Metalink See Oracle Metalink Additional Publications System release bulletins Installation and user s guides Read-me files International Oracle User s Group (IOUG) articles Oracle Magazine Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xvi ONLY. COPYING ekit MATERIALS FROM THIS

19 Typographic Conventions Typographic Conventions in Text Convention Element Example Bold italic Glossary term (if The algorithm inserts the new key. there is a glossary) Caps and lowercase Courier new, case sensitive (default is lowercase) Initial cap Italic Quotation marks Uppercase Buttons, check boxes, triggers, windows Code output, directory names, filenames, passwords, pathnames, URLs, user input, usernames Graphics labels (unless the term is a proper noun) Emphasized words and phrases, titles of books and courses, variables Interface elements with long names that have only initial caps; lesson and chapter titles in crossreferences SQL column names, commands, functions, schemas, table names Click the Executable button. Select the Can t Delete Card check box. Assign a When-Validate-Item trigger to the ORD block. Open the Master Schedule window. Code output: debug.set ( I, 300); Directory: bin (DOS), $FMHOME (UNIX) Filename: Locate the init.ora file. Password: User tiger as your password. Pathname: Open c:\my_docs\projects URL: Go to User input: Enter 300 Username: Log on as scott Customer address (but Oracle Payables) Do not save changes to the database. For further information, see Oracle7 Server SQL Language Reference Manual. Enter user_id@us.oracle.com, where user_id is the name of the user. Select Include a reusable module component and click Finish. This subject is covered in Unit II, Lesson 3, Working with Objects. Use the SELECT command to view information stored in the LAST_NAME column of the EMP table. Arrow Menu paths Select File > Save. Brackets Key names Press [Enter]. Commas Key sequences Press and release keys one at a time: [Alternate], [F], [D] Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del] Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xvii ONLY. COPYING ekit MATERIALS FROM THIS

20 Typographic Conventions in Code Convention Element Example Caps and Oracle Forms When-Validate-Item lowercase triggers Lowercase Column names, table names SELECT last_name FROM s_emp; Passwords PL/SQL objects DROP USER scott IDENTIFIED BY tiger; OG_ACTIVATE_LAYER (OG_GET_LAYER ( prod_pie_layer )) Lowercase italic Uppercase Syntax variables SQL commands and functions CREATE ROLE role SELECT userid FROM emp; Typographic Conventions in Oracle Application Navigation Paths This course uses simplified navigation paths, such as the following example, to direct you through Oracle Applications. (N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve This simplified path translates to the following: 1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches Summary. 2. (M) From the menu, select Query then Find. 3. (B) Click the Approve button. Notations: (N) = Navigator (M) = Menu (T) = Tab (B) = Button (I) = Icon (H) = Hyperlink (ST) = Sub Tab Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xviii ONLY. COPYING ekit MATERIALS FROM THIS

21 Typographical Conventions in Oracle Application Help System Paths This course uses a navigation path convention to represent actions you perform to find pertinent information in the Oracle Applications Help System. The following help navigation path, for example (Help) General Ledger > Journals > Enter Journals represents the following sequence of actions: 1. In the navigation frame of the help system window, expand the General Ledger entry. 2. Under the General Ledger entry, expand Journals. 3. Under Journals, select Enter Journals. 4. Review the Enter Journals topic that appears in the document frame of the help system window. Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xix ONLY. COPYING ekit MATERIALS FROM THIS

22 Copyright Oracle Corporation, All rights reserved. R12 Oracle Purchasing Fundamentals Table of Contents THESE ekit MATERIALS ARE FOR YOUR USE IN THIS CLASSROOM xx ONLY. COPYING ekit MATERIALS FROM THIS

23 Procure to Pay Lifecycle Overview Chapter 1 Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 1 ONLY. COPYING ekit MATERIALS FROM THIS

24 Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 2 ONLY. COPYING ekit MATERIALS FROM THIS

25 Procure to Pay Lifecycle Overview Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 3 ONLY. COPYING ekit MATERIALS FROM THIS

26 Objectives Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 4 ONLY. COPYING ekit MATERIALS FROM THIS

27 Procure to Pay Lifecycle Procure to Pay Lifecycle Sourcing Request for quote Supplier selection Contract negotiations and awards Catalog content management Ordering Requisition and purchase order generation Purchase order management and fulfillment Payment Reporting and Analysis Supplier performance Commodity analysis Internal compliance Robust intelligence gathering Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 5 ONLY. COPYING ekit MATERIALS FROM THIS

28 Decision support Process functionality Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 6 ONLY. COPYING ekit MATERIALS FROM THIS

29 Oracle Procure to Pay Process Oracle Procure to Pay Process Demand The procurement process generates and manages requests for the purchase of goods. The demand for purchase items may be a one-time event or may recur in either predictable or random time intervals. Source The procurement sourcing process covers the business activities related to the search, qualification, and selection of suitable suppliers for requested goods and services. Order The procurement ordering process includes purchase order placement by the buying organization and purchase order execution by the supplying organization. Receive The receipt process acknowledges that a purchase order has been duly executed. For orders of physical goods, it will typically include the receipt, inspection and delivery of the goods to inventory or to another designated location. For orders of services, it will typically consist of a Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 7 ONLY. COPYING ekit MATERIALS FROM THIS

30 notification from the requester or the approving person that the service has been performed as agreed. Pay The payment process consists of those activities involved in the payment for ordered goods and services. Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 8 ONLY. COPYING ekit MATERIALS FROM THIS

31 Demand: Requisitions Demand: Requisitions Requisitions represent demand for goods or services. Whether you want to provide online requisitions to everyone in the organization or limit the number of users who have access to the system, Oracle Purchasing is flexible enough to meet the needs of your organization. With online requisitions, you can centralize your purchasing department, source your requisition with the best suppliers, and ensure that you obtain the appropriate management approval before creating purchase orders from requisitions. Requisitions for goods and services: Are generated by applications like Inventory, Work in Process (WIP), Advanced Supply Chain Planning (ASCP) and Order Management May be entered manually through Oracle Purchasing windows May be entered using Oracle iprocurement May be imported from external systems With Oracle Purchasing, you can: Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 9 ONLY. COPYING ekit MATERIALS FROM THIS

32 Create, edit, and review requisition information on-line. You can enter suggested supplier information, delivery instructions, multiple accounting distributions, and notes to buyers, approvers, and receivers. Review the current status and action history of your requisitions. You always know who approves requisitions and whether they are in the approval, purchasing, receiving, or delivery stage. Route requisitions according to your approval structure. You can set authorization limits by amount, charge account, item category, and location. Review and approve requisitions that need your approval. You can see the full requisition detail and review the action history before you approve a requisition. Print requisitions (with status Approved, Cancelled, Rejected, In Process, Pre-Approved, and Returned) for off-line review and approval. You can always be able to track the status of requisitions through the approval process. Automatically source requisitions from outstanding blanket purchase agreements or quotations you have received from suppliers. Create requisitions quickly and easily for commonly purchased items. Provide attachments as notes on requisition headers and lines. Assign requisition lines to buyers and review buyer assignments for requisition lines. Forward all requisitions awaiting approval from one approver to an alternate approver. Within your security and approval constraints, you can reroute requisitions from one approver to another whenever you want. Source goods from your own inventory with internal requisitions. Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 10 ONLY. COPYING ekit MATERIALS FROM THIS

33 Source: RFQs and Quotations Source: RFQs and Quotations Oracle Purchasing provides you with request for quotation (RFQ), and quotation features to handle your sourcing needs. You can create an RFQ from requisitions, match supplier quotations to your RFQ, and automatically copy quotation information to purchase orders. Oracle Purchasing provides complete reporting to control your requests for quotations and evaluate supplier responses. Quotations can be: Entered manually Copied from an RFQ Imported using the Purchasing Documents Open Interface Imported using the e-commerce Gateway With Oracle Purchasing, you can: Identify requisitions that require supplier quotations and automatically create an RFQ. Create an RFQ with or without approved requisitions so that you can plan ahead for your future procurement requirements. Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 11 ONLY. COPYING ekit MATERIALS FROM THIS

34 Record supplier quotations from a catalog, telephone conversation, or response from your request for quotation. You can also receive quotations electronically. Review, analyze, and approve supplier quotations that you want available to reference on purchase orders and requisitions. You can evaluate your suppliers based on quotation information. Receive automatic notification when a quotation or request for quotation approaches expiration. Review quotation information online when creating purchase orders or requisitions and copy specific quotation information to a purchase order or requisition. Source the items for which you negotiated purchase agreements automatically. If you created sourcing rules and approved supplier list entries for the items, supplier information can be entered automatically in the Requisitions window when you create requisitions. You can also place supplier information for items onto blanket purchase order releases. With Oracle Purchasing and Oracle Sourcing, you can: Initiate a buyers auction in Oracle Sourcing based on requisitions in Oracle Purchasing. Create RFQs and negotiations in Oracle Sourcing that result in purchase orders and purchase agreements in Oracle Purchasing. Collaborate on-line directly with suppliers to get the best terms and prices. With Oracle Purchasing and Oracle isupplier Portal, you can: Enable suppliers to query RFQs and manufacturing planning statuses. Enable suppliers to maintain their production capabilities in Oracle Purchasing. Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 12 ONLY. COPYING ekit MATERIALS FROM THIS

35 Suppliers Suppliers You must define a supplier before performing most activities within Oracle Purchasing and Payables. Once defined you can: Optionally enter a recommended supplier on a requisition Use a supplier to issue a request for quotation Use that same supplier when you enter a quotation Use supplier information for purchase orders Receive goods or services from suppliers Return goods to suppliers Pay the supplier for the goods or services purchased Set up suppliers to record information about individuals and companies you purchase goods and services from. You can also enter employees you reimburse for expense reports. You can designate supplier sites as pay sites, purchasing sites, RFQ only sites, or procurement card sites. For example, for a single supplier, you can buy from several different sites and send payments to several different sites. Most supplier information automatically defaults to all Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 13 ONLY. COPYING ekit MATERIALS FROM THIS

36 supplier sites to facilitate supplier site entry. However, you can override these defaults and have unique information for each site. Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 14 ONLY. COPYING ekit MATERIALS FROM THIS

37 Purchase Orders Purchase Orders Oracle Purchasing supports four types of purchase orders: standard, blanket, contract and planned. There are several methods that can be used to create purchase orders. You can manually create purchase orders or search approved requisitions and add them to purchase orders. Standard purchase orders can be imported through the Purchasing Documents Open Interface in a status of Incomplete or Approved. You can automate purchase document creation using the PO Create Documents workflow to automatically create a blanket purchase agreement release or a standard purchase order upon approval of a requisition. Once purchase orders are created, they may be submitted for approval. The approval process checks to see if the submitter has sufficient authority to approve the purchase order. Once the document is approved, it may be sent to your supplier using a variety of methods including: printed document, EDI, fax, , Oracle isupplier Portal and XML. Once the purchase order or release is sent to your supplier, they are authorized to ship goods at the times and to the locations that have been agreed upon. Purchase documents may be created: By buyers using the AutoCreate window By importing them using the Purchasing Documents Open Interface Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 15 ONLY. COPYING ekit MATERIALS FROM THIS

38 Automatically, by the Create Releases program (blanket releases) Automatically, by Workflow (blanket releases or standard purchase orders) 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. Manage global supplier agreements (blankets and contracts) from a centralized business unit. Manage approved contractual terminology from a library of terms using Oracle Procurement Contracts. Procure to Pay Lifecycle Overview THESE ekit MATERIALS ARE FOR YOUR USE IN THIS Chapter CLASSROOM 1 - Page 16 ONLY. COPYING ekit MATERIALS FROM THIS