26Supply Chain Management Integration

This chapter contains the following:

Contract Manufacturing Setup in Procurement: Explained

Before you can process procurement transactions for contract manufacturing service items, you must perform setup tasks for suppliers and agreements.

Perform the following procurement-related setup to support transactions for contract manufacturing items:

  • Define the contract manufacturer as a supplier and supplier site.

  • Set up a blanket purchase agreement for the contract manufacturer and item.

Define Supplier and Site

Set up suppliers and sites using the Manage Suppliers task in the Suppliers work area.

  • Define the contract manufacturer as a supplier.

  • Set the supplier type to Supplier.

  • Define each of their manufacturing locations as a supplier site.

  • Assign requisitioning business units to each site.

Set up Blanket Purchase Agreement

Set up blanket purchase agreements for contract manufacturing service items using the Manage Agreements task. You can find the task in the Purchase Agreements and Purchase Orders work areas.

  • In the Order Creation Controls section, optionally select the check boxes to automatically create purchase orders from requisitions.

    • Automatically generate orders

    • Automatically submit for approval

  • Attach the work definition document to the agreement line for the item, using the To Supplier category.

For more information about contract manufacturing, see the Oracle SCM Cloud Implementing Manufacturing and Supply Chain Materials Management guide.

Back-to-Back Order Fulfillment Setup in Procurement: Explained

Before you can process procurement transactions for back-to-back items, you must perform setup tasks for the procurement offering, suppliers and agreements.

Perform the following procurement-specific setup to support transactions for back-to-back items:

  • Enable the Customer Sales Order Fulfillment feature.

  • Set up suppliers and supplier sites for your back-to-back items.

  • Set up blanket purchase agreements for your back-to-back items.

Enable Customer Sales Order Fulfillment

To enable the Customer Sales Order Fulfillment feature:

  1. From the Setup and Maintenance work area, select the Procurement offering.

  2. On the Setup: Procurement page, click the Actions drop-down list and select the View Feature Selection option.

  3. On the Edit Features: Procurement page, select the Customer Sales Order Fulfillment check box.

  4. Click Done.

Set up Supplier and Supplier Site

You must set up suppliers and supplier sites for your back-to-back items. Do this in the Suppliers work area, Manage Suppliers task.

  • Use the Sites tab to create each supplier site within the context of the procurement business unit which provides procurement services for the site.

  • Each site must have the Purchasing check box selected, to specify the site fulfills the purchasing function for the client (requisitioning) business units.

  • For each site, use the Site Assignment tab to assign each client (requisitioning) business unit for which the site fulfills the purchasing function.

Set up Blanket Purchase Agreement

You must set up blanket purchase agreements for your back-to-back sales order items. Do this using the Create Agreements task, in the Purchase Agreements and Purchase Orders work areas.

  • In the agreement line, Item field, enter the back-to-back item.

  • Optionally, you can select the following check boxes to support the automatic creation of purchase orders (POs) from requisitions. Do this on the Controls tab, in the Order Creation Options region.

    • Automatically generate orders

    • Automatically submit for approval

  • Also in the Order Creation Options region, select the following check boxes. This enables the grouping of requisition lines with the same sales order number, to be placed on a single PO.

    • Group requisitions

    • Use customer sales order

For more information about setting up back-to-back order fulfillment, see the SCM Cloud Implementing Manufacturing and Supply Chain Materials Management guide.

Drop Shipment Order Fulfillment Setup in Procurement: Explained

Before you can process procurement transactions for drop shipment (drop ship) items, you must perform setup tasks for the procurement offering, suppliers and agreements.

Perform the following procurement-specific setup to support transactions for drop ship items:

  • Enable the Customer Sales Order Fulfillment feature.

  • Set up suppliers and supplier sites for your drop ship items.

  • Set up blanket purchase agreements for your drop ship items.

Enable Customer Sales Order Fulfillment

To enable the Customer Sales Order Fulfillment feature:

  1. From the Setup and Maintenance work area, select the Procurement offering.

  2. On the Setup: Procurement page, click the Actions drop-down list and select the View Feature Selection option.

  3. On the Edit Features: Procurement page, select the Customer Sales Order Fulfillment check box.

  4. Click Done.

Set up Supplier and Supplier Site

You must set up suppliers and supplier sites for your drop ship items. Do this in the Suppliers work area, Manage Suppliers task.

  • Use the Sites tab to create each supplier site within the context of the procurement business unit which provides procurement services for the site.

  • Each site must have the Purchasing check box selected, to specify the site fulfills the purchasing function for the client (requisitioning) business units.

  • For each site, use the Site Assignment tab to assign each client (requisitioning) business unit for which the site fulfills the purchasing function.

Set up Blanket Purchase Agreement

You must set up blanket purchase agreements for your drop ship items. Do this using the Create Agreements task, in the Purchase Agreements or Purchase Orders work areas.

  • In the agreement line, Item field, enter the drop ship item.

  • Optionally, you can select the following check boxes to support the automatic creation of purchase orders (PO's) from requisitions. Do this on the Controls tab, in the Order Creation Options region.

    • Automatically generate orders

    • Automatically submit for approval

  • Also in the Order Creation Controls region, select the following check boxes. This enables the grouping of requisition lines with the same sales order number, to be placed on a single PO.

    • Group requisitions

    • Use customer sales order

For more information about setting up drop ship order fulfillment, see the Oracle Supply Chain Management Cloud Implementing Order Management guide.

Configured Item Order Fulfillment Setup in Procurement: Explained

Before you can process procurement transactions for configured item orders, you must perform setup tasks for document style and blanket purchase agreements.

Perform the following procurement-specific setup to support transactions for configured item orders:

  • Set up a document style for procured configurations.

  • Set up a blanket purchase agreement for a procured configuration.

Set up a Document Style

You must use a document style for procured configurations. A default document style is delivered for use with procured configurations. This document style is automatically applied when you import a blanket purchase agreement for procuring configurations, and when requisitions are automatically converted to purchase orders (POs). Two key points about the document style are:

  • The Goods check box is selected.

  • The Configuration Ordering Enabled option is set to Yes.

Optionally, you can define your own document style for use with procured configurations. Use the Manage Document Styles task. You can find it in the Setup and Maintenance work area, Procurement Offering, Procurement Foundation functional area. If you define your own document style for procured configurations, ensure the Goods check box is selected, and the Configuration Ordering Enabled option is set to Yes.

Set up a Blanket Purchase Agreement

You can set up a blanket purchase agreement to automatically price the base model and options for a configured item. Do this using the Create Agreements task, in the Purchase Agreements or Purchase Order work areas. Key points about creating the blanket purchase agreement are:

  • Select a document style enabled for configuration ordering. You can use the delivered Configure to Order Blanket Purchase Agreement style, or one you have created.

  • Set the line type for each item to Goods. The configured item and the items that make up the configuration must be goods-based.

  • Include an image associated with the base model so it can be seen on the PO.

  • Create agreement lines to list the prices for the base model and options used in the procured configuration.

  • Enter these line-level fields for the base model and options:

    • Item and Description.

    • Parent Item.

    • Top Model.

    • Price.

  • Pricing for options can be negative, to reflect discounts.

  • Pricing for options can also be dependent upon the parent item or top model.

  • Retroactive pricing is not supported on blanket purchase agreements for configurations.

  • Set the Order Creation Options to enable automatic PO creation and approval.

  • Do not enable the Order Creation Options for grouping requisition lines.

Be sure to complete other applicable, procurement-related setups for back-to-back or drop shipment orders.

Externally and Internally Managed Requisitions: Explained

Purchase requisitions you work with in Oracle Procurement Cloud are either externally or internally managed.

Externally managed requisitions are third-party requisitions created through the purchase request web service, or requisition import. Integrating applications can request changes to these requisitions through the web service. Important points to consider about externally managed requisitions are:

  • They are created with an approval status of approved.

  • They are not accessible in the Purchase Requisitions work area.

  • For those requiring manual processing into a purchase order, you can manage them using the Process Requisitions and View Requisitions Lines tasks. You can find the tasks in the Purchase Agreements or Purchase Agreements work areas.

Important points to consider about internally managed requisitions are:

  • They can be created using the Purchase Requisitions work area, by the purchase request web service, or by requisition import.

  • They can be created with an approval status of approved, or incomplete.

  • They are accessible in the Purchase Requisitions work area.

  • For those requiring manual processing into a purchase order, you can manage them using the Process Requisitions and View Requisitions tasks. You can find the tasks in the Purchase Agreements or Purchase Orders work areas.

Internally and externally managed requisitions can also be created using File Based Data Import. However, not all externally managed requisitions can be created using file import. Only the contract manufacturing and shipping method are available in file import.

Purchase Request Web Service in Procurement

The Purchase Request Service (web service) is used to manage Oracle Supply Chain Management Cloud integrations with Oracle Procurement Cloud.

The web service performs these functions:

  • Eliminates the need for these applications to determine which procurement object, requisition or purchase order, is to be processed.

  • Determines if action is needed on a requisition or purchase order.

  • Supports updates to the requisition and purchase order documents using a requisition reference.

Supported Functional Flows

The web service supports these functional flows:

  • Drop shipment

  • Back to back

  • Inventory replenishment

  • Planned order

  • Contract manufacturing

  • Configure to order

Supported Operations

The web service supports third party to Oracle Fusion applications integration, and Oracle Fusion to Oracle Fusion applications integration. It provides the ability for external applications to send requests to Oracle Procurement Cloud in the form of create, change, control and get operations. Oracle Procurement Cloud publishes the following web service operations and actions:

  • Create Purchase Request (Create, Populate, and Submit actions)

  • Change Purchase Request (Change, Cancel, and Split actions)

  • Control Purchase Request (Hold and Freeze, Release Hold and Unfreeze, and Firm actions)

  • Get Purchase Request

Additional Information

For more information about the Purchase Request Service, see the SOAP Web Services for Oracle Procurement Cloud guide in the Oracle Help Center.

Internal Material Transfer Setup in Procurement: Explained

Before you can use internal material transfers, you must perform setup tasks for the Procurement offering.

Perform the following setup steps to support internal material transfers:

  • Configure Other Offerings

  • Configure Self Service Procurement

Configure Other Offerings

Additional setup tasks outside of Self Service Procurement are required to enable internal material transfers. For example, there are both required and optional setup tasks in Supply Chain Financial Orchestration, Supply Chain Managerial Accounting, and Manufacturing Supply Chain Materials Management. See the Implementing Internal Material Transfers chapter in the Oracle Supply Chain Management Cloud Implementing Manufacturing and Supply Chain Materials Management guide.

Configuring Self Service Procurement

Use the Self Service Procurement management page to enable internal material transfers. In the Setup and Maintenance work area, select the Procurement functional area. Click the down arrow button for Self Service Procurement and select Change Feature Selection . Select Internal Material Transfers. This allows Self Service procurement users to be able to order internally sourced items.