Creating a Purchase Order (Oracle General Ledger Users' Guide)


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Creating a Purchase Order

You can quickly create purchase orders from online requisitions using AutoCreate. You can create purchase orders based on any combination of available requisition lines.

You can also create purchase orders online by entering a vendor name, vendor site, bill to location, ship to location, requestor, item, unit, quantity, price, and accounting information.

When you create distributions for a purchase order, you must enter the following accounts:

Charge Account The account where you record the accounting effect of a purchase order. Typically, the charge account is either inventory or expenses.

Budget Account The account where you perform budgetary control. The budget account is also the account that Oracle Purchasing uses to create encumbrance entries.

Accrual Account The account where you record accruals.

Variance Account The account where you record variances between the purchase order and the invoice (invoice price variance).

You can use FlexBuilder to create these accounts automatically.

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Charge Account	The account where you record the accounting effect of a purchase order. Typically, the charge account is either inventory or expenses.
Budget Account	The account where you perform budgetary control. The budget account is also the account that Oracle Purchasing uses to create encumbrance entries.
Accrual Account	The account where you record accruals.
Variance Account	The account where you record variances between the purchase order and the invoice (invoice price variance).