Oracle Purchasing

Oracle purchasing is the formal process of buying goods and services. The process usually starts with a demand or requirement - this could be for a physical part (inventory) or a service. A requisition is generated, which details the requirements, and which actions the procurement department to raise the purchase order.

Purchase orders can be of various types, including:

Standard purchase order - a one-time buy.
Blanket purchase agreement - an agreement on specific terms and conditions: date and quantity and amount are not specified.

Purchase orders are normally accompanied by terms and conditions which form the contractual agreement of the transaction. The supplier delivers the products or service and the customer records the delivery. An invoice is sent by the supplier which is checked against the purchase order and documents specifying the goods received. The payment is then made and transferred to the supplier.

This chapter describes the following test flows in Oracle Purchasing:

Online Standard Purchase Order Creation
Online Blanket Purchase Agreement and Release Creation
Standard Purchase Order Creation using Autocreate
Release Creation using Autocreate
Release Creation using Autocreate with Approved Supplier List and Sourcing Rules
Standard Purchase Order Creation using Autocreate with Contract Purchase Agreement Reference
Online Standard Purchase Order Creation in Buyer Work Center
Standard Purchase Order Creation using Autocreate in Buyer Work Center
Standard Purchase Order Creation with Global Blanket Purchase Agreement Reference using Autocreate in Buyer Work Center
Standard Purchase Order Creation with Global Blanket Purchase Agreement Reference using Autocreate with Approved Supplier List and Sourcing Rules in Buyer Work Center
Standard Purchase Order Creation using Autocreate with Contract Purchase Agreement Reference in Buyer Work Center
Requisition Change Order
Online Standard Purchase Order Creation for Services Item using Forms
Online Standard Purchase Order Creation for Services Item using Buyer Work Center
Modification of Standard Purchase Order in Forms
Modification of Standard Purchase Order in Buyer Work Center
Cancellation of Standard Purchase Order in Forms and Backing Requisition Cancellation
Cancellation of Standard Purchase Order in Buyer Work Center and Backing Requisition Cancellation
Copy of Standard Purchase Order in Forms
Copy of Standard Purchase Order in Buyer Work Center
eBtax for Purchasing

Prerequisites

None.

Profile Options

Table 15-1 Profile Options for Oracle Purchasing

Profile Name	Profile Value	Profile Level
MO: Operating Unit	Vision Operations	Site
MO: Default Operating Unit	Vision Operations	Site : Vision Operations Level : Responsibility Value : iProcurement
MO: Security Profile	Global Vision	Site
HR: Security Profile	Vision Corporation	Site
HR: Business Group	Vision Corporation	Site
GL: Data Access Set	Vision Operations (USA)	Site
POR: Amount Based Services Line Type	Fixed Price Services	Site

Predefined Data

Not applicable.

Setup Data

Org Data
- Operating Unit : Vision Operations (Used for Creating Requisition, POs, Invoices and Payments)
- Inventory Org : V1 (Used for Receiving Goods)

User Setup Data

Table 15-2 User Setup Data for Oracle Purchasing

User	Employee	Role	Position	Job	Hierarchy
Tgreen	Green, Mr. Terry	Requestor	ACC430.Senior Accountant	ACC400.Accountant	Materials
Operations	Stock, Ms. Pat	Buyer or Approver	MM400.Materials Manager	MGR500.Manager	Materials
Cbaker	Baker, Catherine	Buyer or Approver	BUY501.Buyer 1	BUY500.Buyer	Materials
Mfg	Smith, Mr. Jonathan	Receiver	VPM200.VP Materials	VPM200.Vice President Of Materials	Materials
Cbrown	Brown, Ms. Casey	Account Payable or Buyer	EX140.Chief Financial Officer	EX100.Executive	Materials

Approval Setup Data

Table 15-3 Approval Setup Data for Oracle Purchasing

Employee	Position	Approval Assignments	Approval Group	Comments
Green, Mr. Terry	ACC430.Senior Accountant	Requisition, Standard Purchase Order, Blanket Purchase Agreement, Contract Purchase Agreement , Release	Manager	Can approve doc total Up to $25,000
Stock, Ms. Pat	MM400.Materials Manager	Requisition, Standard Purchase Order, Blanket Purchase Agreement, Contract Purchase Agreement, Release	Manager	Can approve doc total Up to $25,000
Baker, Catherine	BUY501.Buyer 1	Requisition, Standard Purchase Order, Blanket Purchase Agreement, Contract Purchase Agreement, Release	Buyer Materials	Can approve doc total Up to $50,000
Brown, Ms. Casey	EX140.Chief Financial Officer	Requisition, Standard Purchase Order, Blanket Purchase Agreement, Contract Purchase Agreement, Release	Executive	Can approve any doc total

Additional Information:

If the document total is more than $25,000, the document moves to the next approver in the hierarchy, which in this case is cbaker.
If the document total is more than $50,000, the document moves to the next approver in the hierarchy, which in this case is cbrown.

Responsibility Setup Data

Table 15-4 Responsibility Setup Data for Oracle Purchasing

Window Name	Field Name	Field Value
Responsibility	Responsibility	Purchasing, Vision Operations(USA) iProcurement Inventory, Vision Operations(USA) Payables, Vision Operations(USA) Human Resource, Vision Enterprises Tax Managers

Item Setup Data

Table 15-5 Item Setup Data for Oracle Purchasing

Window Name	Field Name	Field Value
Item Master	Item	CM00042 (with all orgs assigned and with the properties: Inventory, Stackable, Transactable, Reservable, Purchased, Purchasable, Invoiceable, Costing Enabled and Inventory Asset Value)

Purchasing Related Setup Data

Table 15-6 Purchasing Related Page Setup Data for Oracle Purchasing

Page Name	Field Name	Field Value
Purchasing Options	Line Type	Goods
	Accrue Expense Items	Period end
	Accrue Inventory Items	At Receipt
	Expense Ap Accrual Account	01-000-2220-0000-000
	PO Number	Automatic
	Requisition Number	Automatic
Receiving Options	Receiving Inventory Account	01-000-1410-0000-000
	Clearing Account	01-000-1410-0000-000
	Next Receipt Number	Any value

Table 15-7 Purchasing Related Window Setup Data for Oracle Purchasing

Window Name	Field Name	Field Value
Financial Options	Use Approval Hierarchies	Yes

Document Styles

Table 15-8 Document Styles for Oracle Purchasing

Page Name	Field Name	Field Value
Document Styles	Standard Purchase Order	Goods, Services, Temp Labor
	Blanket Purchase Agreement	Price Breaks, Price Differentials

Document Types

Table 15-9 Document Types for Oracle Purchasing

Page Name	Field Name	Field Value
Standard Purchase Order	Default Hierarchy	Materials
	Owner can Approve	Check
	Forward Method	Hierarchy
	Security Level	Public
	Archive On	Approve
Blanket Purchase Agreement	Default Hierarchy	Materials
	Owner can Approve	Check
	Forward Method	Hierarchy
	Security Level	Public
	Archive On	Approve
Contract Purchase Agreement	Default Hierarchy	Materials
	Owner can Approve	Check
	Forward Method	Hierarchy
	Security Level	Public
	Archive On	Approve
Purchase Requisition	Default Hierarchy	Materials
	Owner can Approve	Check
	Forward Method	Hierarchy
	Security Level	Public

15.1 Online Standard Purchase Order Creation

Buyer logs in with Purchasing responsibility and creates a standard purchase order with Goods line type for an inventory item. Receiver logs in with Inventory responsibility and receives the full quantity of the goods against standard purchase order and a receipt is created in the inventory organization. The Accounts Officer logs in with Payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.2 Online Blanket Purchase Agreement and Release Creation

Buyer logs in with Purchasing responsibility and creates a blanket purchase agreement with goods line type for an inventory item. Buyer creates a blanket release against the agreement. Receiver logs in with Inventory responsibility and receives the full quantity of the goods against blanket release and a receipt is created in the Inventory organization. The Accounts Officer logs in with Payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.3 Standard Purchase Order Creation using Autocreate

This flow covers approval functionality. Once the buyer approves the standard purchase order which has a document total more than $25000, the document goes for approval for the next approver. The approver approves the standard purchase order from the notification received.
Requester logs in with Purchasing responsibility and creates a purchase requisition with Goods line type for an inventory item. Buyer creates standard purchase orders from requisition using Auto Create process. After submitting for approval, standard purchase order goes to the next approver in the hierarchy as the document total is more than $25000. Receiver logs in with Inventory responsibility and receives the full quantity of the goods against standard purchase order and a receipt is created in the inventory organization. Accounts Officer logs in with Payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.4 Release Creation using Autocreate

Requester logs in with Purchasing responsibility and creates a purchase requisition with Goods line type for an inventory item. Buyer creates blanket purchase agreement and creates a release from requisition using auto create process. Receiver logs in with Inventory responsibility and receives the full quantity of the goods against blanket release and a receipt is created in the inventory organization. Accounts Officer logs in with Payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.5 Release Creation using Autocreate with Approved Supplier List and Sourcing Rules

Requester logs in with Purchasing responsibility and creates a purchase requisition with Goods line type for an inventory item. Buyer creates blanket purchase agreement .Buyer then creates approved supplier lists, sourcing rules for the item and sources the blanket agreement. Now Buyer creates a release from requisition using auto create process. Receiver logs in with Inventory responsibility and receives the full quantity of the goods against blanket release and a receipt is created in the Inventory organization. Accounts Officer logs in with Payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.6 Standard Purchase Order Creation using Autocreate with Contract Purchase Agreement Reference

Requester logs in with purchasing responsibility and creates a purchase requisition with Goods line type for an inventory item. Buyer creates contract purchase agreement and then a standard purchase order is created from requisition using auto create process referring the contract purchase agreement. Receiver logs in with inventory responsibility and receives the full quantity of the goods against standard purchase order and a receipt is created in the inventory organization. Accounts Officer logs in with payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.7 Online Standard Purchase Order Creation in Buyer Work Center

Buyer logs in with purchasing responsibility and creates a standard purchase order with Goods line type for an inventory item in Buyer Work Center. Receiver logs in with inventory responsibility and receives the full quantity of the goods against standard purchase order and a receipt is created in the inventory organization. Accounts Officer logs in with payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.8 Standard Purchase Order Creation using Autocreate in Buyer Work Center

Requester logs in with iProcurement responsibility and creates a purchase requisition with goods line type for an inventory item. Buyer creates standard purchase orders from requisition using Auto Create process in Buyer Work Center. After submitting for approval, standard purchase order goes to the next approver in the hierarchy as the document total is more than $25000. Receiver logs in with Inventory responsibility and receives the full quantity of the goods against standard purchase order and a receipt is created in the Inventory organization. Accounts Officer logs in with Payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.9 Standard Purchase Order Creation with Global Blanket Purchase Agreement Reference using Autocreate in Buyer Work Center

Requester logs in with iProcurement responsibility and creates a purchase requisition with Goods line type for an inventory item. Buyer creates a global blanket purchase agreement and then a standard purchase order is created from requisition using auto create process referring the global blanket purchase agreement in buyer work center. Receiver logs in with inventory responsibility and receives the full quantity of the goods against standard purchase order and a receipt is created in the inventory organization. Accounts Officer logs in with payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.10 Standard Purchase Order Creation with Global Blanket Purchase Agreement Reference using Autocreate with Approved Supplier List and Sourcing Rules in Buyer Work Center

Requester logs in with iProcurement responsibility and creates a purchase requisition with Goods line type for an inventory item. Buyer creates approved supplier list, sourcing rules for the item. Creates a global blanket purchase agreement and then a standard purchase order is created from requisition using auto create process referring the global blanket purchase agreement in buyer work center. Receiver logs in with inventory responsibility and receives the full quantity of the goods against standard purchase order and a receipt is created in the inventory organization. Accounts Officer logs in with payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.11 Standard Purchase Order Creation using Autocreate with Contract Purchase Agreement Reference in Buyer Work Center

Requester logs in with iprocurement responsibility and creates a purchase requisition with Goods line type for an inventory item. Buyer creates contract purchase agreement and then a standard purchase order is created from requisition using auto create process referring the contract purchase agreement in Buyer Work Center. Receiver logs in with inventory responsibility and receives the full quantity of the goods against standard purchase order and a receipt is created in the inventory organization. Accounts Officer logs in with payables responsibility and creates a standard invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.12 Requisition Change Order

Requester logs in with iProcurement responsibility and creates a purchase requisition with Goods line type for an inventory item. Buyer creates standard purchase order from requisition using auto create process in Buyer Work Center. Requester creates a change order by changing the quantity and need by date and submits for buyer's approval. Buyer receives the notification for change request and all the changes will be reflected to the standard purchase order automatically once the buyer approves the notification.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.13 Online Standard Purchase Order Creation for Services Item using Forms

Buyer logs in with purchasing responsibility and creates a standard purchase order with Fixed Price Services line type in forms. Receiver logs in with iProcurement responsibility and receives the services against the standard purchase order and a receipt is created. Accounts Officer logs in with payables responsibility and creates a standard Invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.14 Online Standard Purchase Order Creation for Services Item using Buyer Work Center

Buyer logs in with purchasing responsibility and creates a standard purchase order with Fixed Price Services line type in Buyer Work Center. Receiver logs in with iProcurement responsibility and receives the services against the standard purchase order and a receipt is created. Accounts Officer logs in with payables responsibility and creates a standard Invoice, matches the invoice to the standard purchase order and validates the invoice. Once the invoice is validated, a quick payment is done and payment document is created.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.15 Modification of Standard Purchase Order in Forms

Buyer logs in with purchasing responsibility and creates a standard purchase order with Goods line type for an inventory item in forms. Once the document is approved, buyer updates the quantity and approves the document
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.16 Modification of Standard Purchase Order in Buyer Work Center

Buyer logs in with purchasing responsibility and creates a standard purchase order with Goods line type for an inventory item in Buyer Work Center. Once the document is approved, buyer updates the quantity and approves the document
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.17 Cancellation of Standard Purchase Order in Forms and Backing Requisition Cancellation

Requester logs in with purchasing responsibility and creates a purchase requisition with Goods line type for an inventory item in forms. Buyer creates standard purchase order from requisition using auto create process. Buyer cancels the standard purchase order along with backing requisition.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.18 Cancellation of Standard Purchase Order in Buyer Work Center and Backing Requisition Cancellation

Requester logs in with purchasing responsibility and creates a purchase requisition with Goods line type for an inventory item. Buyer creates standard purchase order from requisition using auto create process in buyer work center. Buyer cancels the standard purchase order along with backing requisition.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.19 Copy of Standard Purchase Order in Forms

Buyer logs in with purchasing responsibility and creates a standard purchase order with Goods line type for an inventory item in forms. Once the document is approved, buyer copies the same document to create another standard purchase order.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.20 Copy of Standard Purchase Order in Buyer Work Center

Buyer logs in with purchasing responsibility and creates a standard purchase order with Goods line type for an inventory item in Buyer Work Center. Once the document is approved, buyer duplicates to create another standard purchase order in Buyer Work Center.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

15.21 eBtax for Purchasing

Requester logs in with purchasing responsibility and creates a purchase requisition with Goods line type for an inventory item in forms and specify the ship to location (Costa Mesa, CA) for which the tax is enabled and verifies that the tax is applied to the requisition. Buyer creates standard purchase order from requisition using auto create process in forms and verifies that the tax is applied to the standard purchase order.
Prerequisites
None.
Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data

Table 15-10 Window Setup Data for eBtax for Purchasing Flow

Window Name	Field Name	Field Value
Define Locations	Location	Costa Mesa, CA

Table 15-11 Page Setup Data for eBtax for Purchasing Flow

Page Name	Field Name	Field Value
Tax configuration	Country Name	United states
	Tax Regime Code	24 US STATE TAX
Tax Rules	Ship To	Costa Mesa, CA
Parties	Party Name	Vision eTax

Oracle Database and Oracle Applications

Tuesday, October 16, 2018