Requisition templates (Create & Use)

Many times requisitions have common/standard set of item depending on user or department, so better to use template for such kind of requisition. Then user can just create requisition by using the templates without missing any component/s.

These templates automate requisitioning of commonly ordered items like office supplies. To create a requisition for office supplies, requestors in organization simply use template and enter the quantity of each item they want to order.

The Source type determines the source of the requisitioned items. The choice you have in this field is dependent on your user profile options and the system profile options. At either level, you may be restricted to one of the following options: Inventory or Supplier.

Note that if you have both options, you can source requisition lines independently of the requisition type. You can even mix inventory and supplier sourced requisition lines in the same requisition. Purchasing creates one internal sales order for each inventory source type requisition line on this requisition. The supplier source type requisition lines go onto purchase orders, either automatically with AutoCreate Documents or manually with the Purchase Orders window.

Here we are going to see how to create template and how to use it while creating Requisition.

Purchasing Super User (R) > Setup > Purchasing > Requisition Template

Enter the line details on template, if you want to copy content from PO or requisition click on Copy (B).

To create a template, we can specify the items individually or can reference an existing requisition or purchase order. If referring an existing document, Purchasing adds all lines on the document to the template. Multiple documents can be referred to add all their lines to the same template. You can place lines from multiple documents onto the same requisition template.

Note: For supplier-sourced lines, you can enter the unit price, and this price is used in the Requisitions window. For inventory source lines, the cursor does not enter this field, and the price in the Requisitions window is the actual cost from inventory. You can enter sourcing information for the current line in the lower part of the screen.

After copying content from document you can modify those on template as well as add and remove few lines if required.

Save your work now.

After you define a template, you can reference the template in the Supplier Item Catalog. When you do so, Purchasing displays all template lines that are valid for the destination organization, and you can use any of these lines on your requisition. Go to Purchasing (R) > Supplier Item Catalog and query for the template, then go to ‘Requisition Template’ (T).

Now we will see how you can create Requisition using template.

Go to Purchasing (R) > Requisitions > Requisitions

Then enter header level information and come to line and click on ‘Catalog’ (B). Again query for the template you want to use.

Here you can add or remove line to requisition from the template. After completing click on ‘Select’ (B).

All the selected lines get copied to requisition automatically. Here also you can add more line to requisition if required.

Rest of the process of approval and creating PO remains same as any other requisition.

What's new at R12 Purchasing

What’s new in R12- Purchasing:

· The Professional Buyer’s Work Center speeds up daily purchasing tasks by providing buyers with a central launch pad from where they can efficiently perform their daily tasks, such as:

o Viewing and acting upon requisition demand

o Creating and managing orders and agreements

o Managing contract deliverables

o Running negotiation events, including auctions and RFxs

o Managing supplier information

· The Professional Buyer’s Work Center tightly weaves Oracle Purchasing with other products in the procurement family, such as Oracle Sourcing, Oracle Procurement Contracts, and Oracle Services Procurement. Buyers can now easily navigate from purchasing to sourcing documents, and vice-versa, using a single, friendly user interface.

· From the Demand Workbench, buyers can access the catalog and favorites to find negotiated alternatives to non-catalog requests. While authoring orders and agreements, buyers can use the catalog or favorites to quickly add items, thereby accelerating the document creation process. The enhanced catalog access provides easy access to pre-negotiated items. This reduces spending by leveraging negotiated pricing.

· Document Styles is a new feature in R12. It allows buying organizations to control the look and feel of the application to match the needs of different purchasing documents. Through reusable document styles, deploying organizations can enable or disable various Oracle Purchasing features, thereby simplifying the user interface. This helps people to use familiar name to Purchasing documents.

o When a purchasing document is created using a style, disabled features are hidden to simplify the user interface. For example, organizations can create a document style for a specific commodity, such as temporary labor. This document style optimizes field labels and display for that commodity, simplifying purchase order entry by hiding regions/attributes that are only relevant for goods purchases.

· Procurement of Complex Services is an integrated solution for Oracle Services Procurement used to model complex work contracts that involve advanced payment terms. These contracts tend to have high dollar values, often running into several millions of dollars. They also tend to be long lead time contracts, sometimes extending over multiple years. These contracts are characterized by progress payments that are governed by the complex payment terms, and which are released based on completion of work.

o The business flow can originate with a services request which the buying organization determines needs complex payment terms to manage and fulfill. The sourcing process allows negotiation of the complex payment terms and these are carried forward to the Contract after the award.

o The Contract, once approved and signed off by the involved parties is now in a state ready for execution. The Supplier can report progress on the work specified on the Contract, which the buying organization can certify as complete. Subsequently, payments can be processed for the progress made on the contract. The payment terms specified on the contract are used to compute the payment due to the supplier.

· Public APIs are modified to support Multi-Org Access Controls (MOAC). Public APIs take Operating Unit as a parameter. Operating Unit is an optional parameter. If it is not provided, the default operating unit from setup is used to set the desired context.

o PO Change API – POXCHN1B.pls

o Cancel PO API – POXPDCOB.pls

o Price Control API – POXPCPRB.pls

· Oracle E-Business Tax is a new infrastructure for tax knowledge management and delivery using a global system architecture that is configurable and scalable for adding country specific tax content.

o As the single point solution for managing transaction-based tax, Oracle E-Business Tax delivers tax services uniformly to Oracle E-Business Suite business flows through one application interface.

o Oracle E-Business Tax provides a comprehensive solution to configure, maintain, manage, and access transaction-based taxes. Organizations will have the ability to effectively address multiple tax needs, from global tax requirements to local compliance.

o Previously, only basic tax code and tax group based tax computation capabilities were supported. By integrating with Oracle E-Business Tax, the Procure to Pay business flow will be able to address complex tax requirements. Another benefit of the integration is the ability to utilize a single point tax solution across the E-Business Suite, which greatly simplifies maintenance and tax management.

o Tax is calculated for the following purchase documents:

§ Purchase and Internal Requisitions, at the requisition line level

§ Standard and Planned Purchase Orders, at the PO shipment level

§ Blanket and Scheduled Releases, at the Release shipment level

o Tax is calculated whenever a purchase transaction is created and tax is recalculated when any tax determination attributes on the transaction is updated. So any saved purchase document should have its applicable tax already calculated.

o In case of upgrading to R12 client may opt to keep using Pre-R12 tax setup or can do some additional setups for using new functionalities.

· In release 11i, Oracle Advanced Procurement Suite supported XSL-FO stylesheet based layout templates. In release 12, you can use layout templates created in Microsoft RTF and Adobe PDF formats. With Release 12, buyers can print purchasing documents on demand using any of the pre-defined layout templates. It also allows buyers to print a purchasing document in multiple formats

o Attachment type supported

§ Notes to Supplier (R12, 11i)

§ Long Short text (R12, 11i)

§ Files (R12)

§ URL (R12)

· Maintain Sourcing Rules/ASLs for Agreement Items: Prior to this release, system-generated sourcing rules and ASLs were only created at the time of blanket agreement approval. These rules were enabled for all organizations, which might not have mirrored actual business processes.

In this release, you create sourcing rules and ASL entries for a specific inventory organization. You can create these rules for agreements that you manually create, or for agreements that you import through the open interface.

In addition, the dependency of rules creation with the approval process has been removed. As a result, you can create rules for existing agreements that have already been approved. This concurrent program allows you to automatically create rules for all of the operating units in which a blanket agreement is enabled.

o

· Support for Contract Purchasing Users: In this release, contingent workers can perform the same actions as requesters and buyers who are employees. These actions include creating requisitions, purchase orders, and receipts. In addition, contingent workers can approve both requisitions and purchase orders.

Now the question is what the benefit of this:

• Companies can outsource their procurement functions to third parties, allowing them to focus on their core competencies.

• For the many companies that utilize the services of contingent workers, these workers can raise requisitions on their own behalf.

• Companies can meet compliance requirements because they no longer have to define contingent workers as employees for contingent workers to perform their jobs.

· Auto-Approval Tolerances for Change Orders: (Purchasing : Tolerances and Routing > Change Order) Auto-Approval Tolerances are defined on Setup screen or in Workflow Attributes. Once a Purchasing Document is submitted for approval, in the Approval Workflow a check is done to ensure that all changes are within tolerance. If they are then main approval is bypassed otherwise the document is routed through main approval process in workflow.

· Model Complex Pricing for Blanket Line Items: R12, Oracle Purchasing provides an additional option to model complex pricing for Blanket line items. In this release Oracle Purchasing has built an integration with the Oracle Advanced Pricing product. Oracle Advanced Pricing provides a set of tools in the form of price lists, formulas and modifiers to model complex pricing scenarios. This integration may eliminate the need for existing Oracle Purchasing customers to incorporate custom code into the product in the form of the custom pricing hook.

The integration with advanced pricing allows dynamic calculation of prices providing significant additional flexibility to complement the existing blanket agreement functionality. Companies can now accurately price all requests and purchases, thus reducing their dependence on the supplier’s billing capabilities.

Pricing Hierarchy

• If the transaction references an item from the item master, the list price of the item in the item master is first defaulted into the transaction.

• If the transaction references an approved and active blanket agreement, the pricing engine then determines the price from the applicable agreement price breaks if there’s any.

• If there isn’t any price break defined, it picks up the price from the agreement line.

• If there’s pricing information available in Oracle Advanced Pricing in the form of price list lines and/or modifiers, these pricing rules are then applied to arrive at the net price.

• It is important to note that if you have defined custom pricing rules in the custom hook provided, those rules override any other pricing that the system may have derived.

· Mass Re-pricing of Purchasing Documents was availabel from 11i9, in R12 it is improved a lot. You can now be able to re-price orders in batch using the existing “Retroactive Price Update” concurrent program even if the orders were not sourced from Blankets.

This Concurrent Program is now capable of re-pricing transactions based on pricing rules defined:

o On Oracle Advanced Pricing Price Lists/Modifiers

o And on Custom Pricing Hooks

· Advanced Approval Support for Requisitions:

o Parallel Approvals

o Support for Viewers

o Position Hierarchy Support

·

·

Understand ASL Precedence

Understand "Approved Supplier List" (ASL) Precedence

Accounting flow in Oracle Purchasing

Accounting flow in Oracle Purchasing

Use of different Purchase order types

• Standard Purchase order: This type of PO is used when you know the Item, Price, Delivery Schedule and payment terms. Most of the time Standard PO is used to fulfill sporadic demands or say demand coming once or twice a year. In this type of PO you are committing a purchase of item/s with particular quantity and particular price at particular shipment schedule.

For example

• Purchasing for any specific event happening in Company
  
• Where purchasing item/s is one time job.
• Planned Purchase Order (PPO): This type of PO is used when you are not sure about the exact delivery schedules but other details are quite clear (like Item, Quantity, Price, approximate Delivery Schedule and Payment Term). For PPO Need-By-Date has to be entered, but this date will be treated as tentative date only. Once you are sure about the delivery schedule you create releases against this PPO with detailed delivery schedule. In this type of PO you are committing a purchase of item/s with particular quantity and particular price but with tentative shipment schedule. When you make a release, you are committing the delivery also.

For example

• You need 1200 notebooks yearly, so you can raise PPO with quantity 1200 and in shipment details you can have shipment schedule as per your need (Say 12 shipments with 100 quantity each). This will be tentative schedule, you need to generate a release as and when you need the good and supplier will provide you material.
• Blanket Purchase Order: This kind of PO is used when are not sure about quantity, price, delivery schedule. As soon as you select PO type as Blanket Purchase Agreement the fields for quantity  gets disabled. Blanket PO can be based on max agreed amount. Exact quantity Delivery Schedule and price will be informed to supplier by creating Blanket releases against blanket PO. You can have different ‘Price Breaks’ and specify the quantity / discount / effectively details. In this type of PO you are not committing your supplier at the time of creating PO, all the commitments are done when release is sent.

For Example:

• A car manufacturer needs dashboard for each vehicle and it is purchased from selective suppliers only. But demand for dashboard is not clear. In this case Blanket PO is used and whenever demand comes, releases are sent to supplier.
• Contract Purchase Order: This type of PO is used when you are not sure even about the item which need to be purchased J. The only information that you provide in a Contract PO is supplier, supplier site, payment terms and agreement control details (header part only). Standard PO are created by referring the Contract PO when some thing is to be purchased against the Contract PO from that supplier.

For example:

• You need to import many items to run your business, but you don’t have Import/Export license. In this case you create Contract PO with supplier who has Import/Export license and whenever you need something to be imported, you generate standard PO referring the Contract PO for that Item/s.

Out of above 4 types you can add only Blanket and Contract POs in Approved Supplier List (ASL).

This is applicable for Oracle EBS only...

 

Requisition to Pay Cycle (Procure to Pay) in Oracle

*For better visibility Click Here

1. Go to Purchasing > Requisitions > Requisition Summary.

• In the Find Requisitions window, enter requisition number found in the
  previous step and click on Find.

2. Go to Purchasing > Autocreate.

• From Edit > Clear > Record, clear any query criteria that may be defaulted.
• Enter requisition number and click Find.
• Check the checkbox to the left of the line, and click on Automatic.
• Enter the Supplier and Supplier site such as the following and click on Create

  
If you are doing it first time for the selected items or due to some problem your regular supplier is not in condition to supply goods. In that case you might need to go for RFQ (Request for Quotation) and then depending on quotations from different suppliers, PO will be released.

(Requisition -> RFQ -> Quotation -> PO/Release)

COMING SOON ! How to create PO from Requisition using RFQ & Quotaion

3. The Purchase Order form will automatically open with the PO that got created.

• Click on the Approve button.
• Click on the OK button in the Approval Documents window to approve the PO.
• Note down the PO number, and verify that the status is Approved

4. Go to Purchasing > Receiving > Receipts.

• Enter Purchase Order number and click on Find.
• In the Receipts window, check the checkbox to the left of the line and enter
  1. Destination Type : Inventory
  2. Subinventory : FGI
  3. Save the receipt. 

5. Go to Purchasing > Receiving > Receiving Transactions Summary.

• Enter the Purchase Order number and click on Find.
• Click on the Transactions button.
• Verify a Receive and Delivery transaction. This means that the B2B item has been received into Inventory.
  
  

6. Payables > Invoices > Entry > Invoices

-Enter the supplier, amount and other details.

7. Match the invoice with Receipt or with PO. Open Invoice > Match (B) > Enter PO / Receipt Number > Find (B)
   
   
   
   
   

8. Validate Invoice: Open Invoice > Actions… 1 (B)

  

9. Verify Invoice Status:

   

10. Create Accounting and initiate Payment: Open Invoice > Actions… 1 (B)

• Enter Payment details and Save:

    

11. Make Payment/s:

  

• Review Payment: Payment Overview (B)

  

12. Verify PO Status:

 

One more very good document on this line is at http://erpschools.com/Apps/oracle-applications/Articles/General/Procure-to-Pay-Cycle/index.aspx

Purchasing Overview

PURCHASE ORDER

What are the main tables associated with Purchase Order?

There are four main tables associated with Purchase Order.

1. PO_HEADERS_ALL

2. PO_LINES_ALL

3. PO_LINE_LOCATIONS_ALL

4. PO_DISTRIBUTIONS_ALL

1. It contains the Header information for the Purchasing documents. We require one row for each document we create.

Six types of documents that use PO_HEADERS_ALL are

a. RFQ

b. Quotation

c. Standard PO

d. Planned PO

e. Blanket PO

f. Contracts

Important data that are populated in this table are

· Buyer Information

· Supplier Information

· Brief Notes

· Terms and Conditions

· Status of the document

PO number is Segment1 of PO_HEADERS_ALL

Important columns: PO_HEADER_ID

2. It stores information about each PO lines. We need one row for each line we attach to a document.

Each row includes

a. LINE NUMBER

b. ITEM NUMBER

c. UNIT

d. PRICE

e. U.O.M

f. QUANTITY

3. It contains the information about PO shipment schedules and Blanket Agreement Price Breaks.

We need one row for each schedule or price break we attach to a document

Each row includes

· Destination Type

· Requestor Id

· Quantity Ordered and Delivered to Destination

Ø If the distribution corresponds to a Blanket PO release, PO_RELEASE_ID column identifies this release

Ø We enter distribution information in distribution window accessible through PO window

­CLOSING THE PURCHASE ORDER

The CLOSED_CODE column exists in the following three tables

1. PO_HEADERS_ALL

2. PO_LINES_ALL

3. PO_LINE_LOCATIONS_ALL

IMPORTANT COLUMNS OF PURCHASING TABLES

PO_HEADERS_ALL	PO_LINES_ALL	PO_LINE_LOCATIONS_ALL
PO_HEADER_ID SEGMENT1 VENDOR_ID VENDOR_SITE_ID SHIP_TO_LOCATION_ID CURRENCY_CODE CLOSED CODE 1. OPEN 2. CLOSED 3. FINALLY CLOSED 4. HOLD 5. FREEZE	PO_LINE_ID CATEGORY_ID ITEM_ID PO_HEADER_ID QUANTITY CLOSED_CODE 1. OPEN 2. CLOSED	LINE_LOCATION_ID SHIP­_TO_LOCATION_ID PO_HEADER_ID PO_LINE_ID QUANTITY_RECEIVED QUANTITY_ACCEPTED QUANTITY_REJECTED CLOSED_CODE 1. OPEN 2. CLOSED FOR INVOICE 3. CLOSED FOR RECEIVING 4. FINALLY CLOSED

RECEIVING

What are the different Purchasing modes in Receiving?

There are three modes

1. ONLINE

2. IMMEDIATE

3. BATCH

1. ONLINE: Receipts are processed Online. If there are any errors, they are shown on the FORM itself, and don’t let you IGNORE and PROCEED.

2. IMMEDIATE: Receipts are processed immediately, but no errors are shown. Errors are recorded in REC_TRANSACTION_INTERFACE table.

3. BATCH: Receipts are processed in batch, but no errors are shown. Errors are recorded in REC_TRANSACTION_INTERFACE table.

Note: In all the above two cases, it requires Receiving Transaction Processor to be run periodically.

When you SAVE a Received Data in FORM, which tables are UPDATED?

Ø RCV_SHIPMENT_HEADERS: It contains SUPPLIER shipment header data like Shipment Date, Supplier Name

Ø RCV_TRANSACTIONS_INTERFACE: It contains RECEIVED data like Item Name, Quantity, and Receiving location

Ø RCV_SHIPMENT_LINES

Ø MTL_MATERIAL_TRANSACTIONS_TEMP

Ø PO_LINE_LOCATIONS_ALL

Ø PO_DISTRIBUTIONS_ALL

What are the major transactions in RECEIVING?

Ø Purchase Order Receipts

Ø Internal Requisition Receipts

Ø Inventory Inter-Org Transfer Receipts

Ø Customer Return Receipts

What are the different types of Receiving Routing?

Ø Standard Receipt

Ø Inspection Required

Ø Direct Delivery

Note: The Receipt form is used as Receiving materials against PO on Ordered receipts, Internal Requisitions, Inventory Inter-Org Transport and Customer Reports.

RECEIVING OPEN INTERFACE

Ø ROI is a gateway to IMPORT data from Oracle as well as Non-Oracle applications.

Ø The Receipts done through ROI should be processed in Batch mode only.

Ø In ROI, the table which are updated are

1. RCV_HEADER_INTERFACE

2. RCV_TRANSACTION_INTERFACE

Note: Transactions in ROI

Receipts can be done by Direct Delivery or by two steps namely RECEIVED and DELIVER.

This can be determined through AUTO_TRANSACT_CODE_FLAG.

If the value is DELIVERED, the system does a direct delivery into Sub-Inventory and if the value is RECEIVED, the system only receives the material and the delivery is done by the Receiving Transaction Form.

IMPORTANT COLUMNS OF RECEIVING TABLES

RCV_HEADERS_INTERFACE	RCV_TRANSACTIONS_INTERFACE	RCV_SHIPMENT_HEADERS
Ø HEADER_INTERFACE_ID Ø GROUP_ID Ø RECEIPT_SOURCE_CODE Ø PROCESSING_STATUS_CODE Ø TRANSACTION_TYPE Ø ASN_TYPE	Ø INTERFACE_TRANSACTION_ID Ø GROUP_ID Ø PROCESSING_STATUS_CODE Ø TRANSACTION_STATUS_CODE Ø PROCESSING_MODE_CODE Ø HEADER-INTERFACE_ID	Ø ASN_STATUS Ø ASN_TYPE Ø EDI_CONTROL_NUM

NON-SUPPORTED FEATURES OF ROI

Ø Transactions with LOT controls

Ø Transactions with SERIAL controls

Ø Internal Transfer & Sales order

Ø Un-Ordered Receipts

Through which you will be able to see ERROR reports in ROI?

Receiving Interface Errors Report

Data can be loaded into ROI either through flat files or direct SELECT statement. You can see details of errors from PO_INTERFACE_ERRORS table by joining with RCV_TRANSACTIONS_INTERFACE table using Interface_id.

What do you mean by PO requisition?

Ø PO requisition is a request to purchase materials for individual requirements. Normally Purchase requisitions are raised by employees or departments.

Ø Requisitions need approvals. It can be manually created or imported from other system like Inventory, WIP, MRP, OM etc

TABLES USED WITH REQUISITIONS

PO_REQUISITIONS_HEADERS_ALL

PO_REQUISITIONS_LINES_ALL

PO_REQ_DISTRIBUTIONS_ALL

The description is the same as PO

OTHER IMPORTANT TABLES USED WITH REQUISITIONS

Ø PO_VENDORS

Ø PO_LOOKUP_CODES

Ø PO_VENDOR_SITES_ALL

Ø PO_AGENTS

Ø PO_DOCUMENT_TYPES_ALL_B

Ø PO_RESCHEDULE_INTERFACE

Ø MTL_SUPPLY

IMPORTANT FIELDS OF REQUISITION

Ø REQUISITION_TYPE

Ø PREPARE

Ø TOTAL_CURRENCY

Ø LINE_TYPE

Ø CATEGORY

Ø SOURCE DESTINATION TYPE AND ORGANIZATION

ACTIONS PERFORMED WITH REQUISITION

Ø SAVE

Ø APPROVE

If you SAVE requisition, the above three tables are populated, while if you APPROVE a requisition, major tables updated are

Ø PO_REQUISITION_HEADER

Ø PO_APPROVAL_LIST_HEADERS

Ø PO_DOCUMENT_TYPES

CLOSING STATUS OF REQUISITION

Ø CANCEL

Ø FINALLY CLOSED

What do you mean by Auto Create?

Auto Create is a standard functionality provided by Oracle to create PO directly from Requisitions.

REQUISITIONS IMPORT PROGRAM (RIP)

Ø It is a concurrent program, which is used to import requisition from Oracle or Non-Oracle system.

Ø Data is first loaded in PO_REQUISITION_ALL table. The RIP can then be run, to import the records from the interface table as requisition in Oracle Processing.

Ø RIP creates a requisition line and one or more requisition distribution for each row it finds in the interface table. It then groups these lines on Requisitions according to parameters defined.

IMPORTANT TABLES

Ø PO_REQUISITION_INTERFACE_ALL

Ø PO_REQ_DIST_INTERFACE_ALL

Ø PO_INTERFACE_ERRORS

IMPORTANT PARAMETERS OF REQUISITION IMPORT PROCESS

a. Import Source

b. Import Batch Id

c. Group By

d. Initiate Approval after Import

REPORTS ASSOCIATED WITH REQUISITIONS IMPORT PROCESS

a. REQUISITION IMPORT RUN REPORT

We are able to view number of requisitions created and number of records in error from this report.

b. REQUISITION IMPORT EXCEPTIONS REPORT

We can see all rows that fail validation from this report

What do we mean by Sourcing Rule?

Ø It defines Inventory Replenishment method for either a Single Organization or for all Organizations.

Ø Sourcing rule is used to specify preferred Suppliers, Distributors and manufacturers.

Ø Use allocation percentage and ranking for multiple sources.

INTERNAL REQUISITIONS

Ø It is used to obtain materials within the same Organization or different Organization but within the same set of books.