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
None.
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 |
Not applicable.
Operating Unit : Vision Operations (Used for Creating Requisition, POs, Invoices and Payments)
Inventory Org : V1 (Used for Receiving Goods)
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 |
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 |
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.
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 |
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) |
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 |
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 |
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 |
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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
None.
Not applicable.
Not applicable.
Not applicable.
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
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.
Not applicable.
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.
None.
Not applicable.
Not applicable.