Previous	Next		Contents	Index	Navigation	Glossary	Library

A purchase requisition is one that is filled by an external vendor through a purchase order. For example, you order a software package for a personal computer. A buyer then creates a purchase order from the requisition. The buyer groups a number of requisition lines to create a large purchase order for the software package.

An internal requisition is one sourced from inventory. For example, you might have a central supplies area from which employees can requisition standard items you keep on hand. Or you might have a large central warehouse with various satellite supply areas. You replenish the local supply areas from a central warehouse.

When you source a requisition from inventory, the requisition must go through the same approval and funds reservation cycle as a requisition you source from a vendor. Once the requisition has been fully approved and Oracle Purchasing has reserved funds for it, the requisition is available for sourcing from inventory.

You initiate the Create Internal Sales order process in Oracle Purchasing and then Oracle Order Entry's Order Import process creates internal sales orders from the requisition lines that you source from inventory. Order Import creates internal sales orders and imports them into Oracle Order Entry. The internal sales order then goes through the pick release process, creating picking documents. Then the shipment is confirmed and packing documents are created.

If you cancel an internal sales order, you must cancel the associated requisition manually in Oracle Purchasing. You cannot recreate requisition encumbrances once you cancel an internal sales order. Cancelling the requisition--or requisition lines--automatically creates negative debit entries that relieve the requisition encumbrance. You can then create new requisition lines and reserve funds for them.

When you reserve funds for an internal requisition, the cost Oracle Purchasing uses to encumber the requisition is the unburdened cost available from the item master when you enter the requisition. The cost Oracle Purchasing uses to reverse the encumbrance when you record the actual expense for the filled requisition is the cost of the item when you issue it from Oracle Inventory. This cost might be different from the cost you used to encumber the original requisition. Oracle Purchasing reverses the amount of the original requisition encumbrance, regardless of what the actual costs are.

Oracle Purchasing relieves encumbrances on an internal requisition when you issue goods and deliver them from Oracle Inventory. When you issue goods from Oracle Inventory they are immediately received in Oracle Purchasing.

See Also