6Manage Purchase Orders

This chapter contains the following:

Use the Purchase Orders Work Area

Orders Requiring Attention Infolet: Explained

Infolets are used in Oracle Fusion Procurement to provide to detailed information about procurement objects and processes.

The Orders Requiring Attention infolet identifies any orders that have some kind of problem that you may want to check. This includes orders that have been rejected, failed automatic submission, or have invoices on hold.

You can click the status number to see a list of the orders having that status. From the list, you can click an order number link to view and update the order details. You can and resubmit orders that have been rejected. You should drill into any order that has failed automatic submission to determine and correct the error that caused the failure. Then you can resubmit the order. Finally, you can view details for any order with an invoice hold.

Create Purchase Order

What's the difference between an order and a requisition?

An order is a formal authorization to purchase goods or services. Your purchasing department creates a purchase order, which a supplier receives. A purchase order can be tracked until you receive the goods or services.

A requisition is a request for the goods or services. If approved, a purchase order is created to fulfill the requisition.

What's the difference between a purchase order, a purchase agreement, and a contract agreement?

Oracle Fusion Purchasing provides the following purchase order types: purchase order, blanket purchase agreement, and contract purchase agreement.

Note that your organization can change the names of these documents to suit your business needs, but in their basic form the following describes their function:

  • Purchase Order

    You generally create a purchase order for a one-time purchase of various items. You create a purchase order when you know the details of the goods or services that you require, estimated costs, quantities, delivery schedules, and accounting distributions.

  • Blanket Purchase Agreement

    You create blanket purchase agreements when you know the details of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them. Prices for items can be negotiated on a blanket purchase agreement by a procurement business unit which can then be made available to multiple requisitioning business units.

  • Contract Purchase Agreement

    You create a contract purchase agreement with your supplier to agree on specific terms and conditions without indicating the goods and services that you will be purchasing. You can later issue purchase orders referencing your contracts using terms negotiated on a contract purchase agreement by a procurement business unit which can then be made available to multiple requisitioning business units.

To minimize document creation time and reduce errors, a comprehensive defaulting mechanism is used to provide most required purchasing document header information. In this context, default means that the application provides this information for you. It does not mean that you can always change the default information.

Purchasing Document Header Defaulting Rules

The header or general information portion of a purchasing document contains the details that apply to the entire document.

The table lists the header fields that can appear on a purchasing document page. The following columns indicate where the default comes from for each document type. Document types include purchase order, blanket purchase agreement, and contract agreement.

  • These rules do not apply to the case when a line is brought over from the catalog or a requisition line.

  • In the following table, when options for a purchasing document header default rule are listed as 1, 2, 3 and so on, the application looks first for the option specified as number 1. If information is not available in this source, it uses the next numbered source, and so on.

Header Fields Purchase Order Blanket Purchase Agreement Contract Agreement

Automatically Generate Orders

Not applicable

Check box is selected.

Not applicable

Automatically Submit for Approval

Not applicable

Check box is selected.

Not applicable

Bill-to Location

  1. Supplier Site Assignment record of the supplier site in the Sold-to BU

  2. Common Payables and Procurement Configuration setting for the Sold-to BU

Not applicable

Not applicable

Buyer

Current signed in user who opens the create document window

Current signed in user who opens the create document window

Current signed in user who opens the create document window

Carrier

  1. Supplier Site

  2. Procurement Business Function Configuration of the Procurement BU

Same as purchase order

Same as purchase order

Communication Method

  1. Supplier Site

  2. 'None'

Same as purchase order

Same as purchase order

Confirming order

Deselected

Deselected

Deselected

Conversion Date

  1. The current date in the legal entity's time zone, if available.

  2. Otherwise, the current date in the application server's time zone.

Not applicable

Not applicable

Conversion Rate Type

  1. If currency is fixed rate as defined in GL then set to EMU Fixed

  2. Common Payables and Procurement Configuration setting for the Sold-to BU

Not applicable

Not applicable

Currency

  1. Invoice Currency of the Supplier Site

  2. Primary ledger currency of the Sold-to BU

  1. Invoice Currency of the Supplier Site

  2. Procurement Business Function Configuration of the Procurement BU

Same as blanket purchase agreement

Default Ship-to Location

(If only Services, the attribute name is Default Work Location)

  1. Supplier Site Assignment record in the Requisitioning BU

  2. Requisitioning Business Function Configuration of the Requisitioning BU

Not applicable

Not applicable

Email

(If Communication Method is email)

  1. Supplier Contact

  2. Supplier Site

Same as purchase order

Same as purchase order

FOB

  1. Supplier Site

  2. Procurement Business Function Configuration of the Procurement BU

Same as purchase order

Same as purchase order

Fax

(If Communication Method is Fax)

  1. Supplier Contact

  2. Supplier Site

Same as purchase order

same as purchase order

Freight Terms

  1. Supplier Site

  2. Procurement Business Function Configuration of the Procurement BU

Same as purchase order

Same as purchase order

Group Requisitions

Not applicable

Procurement Business Function Configuration of the Procurement BU

Not applicable

Group Requisition Lines

Not applicable

Procurement Business Function Configuration of the Procurement BU

Not applicable

Pay on Receipt

  1. Supplier Site

  2. Deselected

Same as purchase order

Same as purchase order

Payment Terms

  1. Supplier Agreement

  2. Supplier Site

  3. Procurement Business Function Configuration of the Procurement BU

  4. Manage Invoice Options task setup for invoicing business unit, in the Setup and Maintenance work area

  1. Supplier Site

  2. Procurement Business Function Configuration of the Procurement BU

  1. Supplier Site

  2. Procurement Business Function Configuration of the Procurement BU

Purchase Order Style

Style Display Name for the Purchase Order document type as specified in the Style "Standard Style"

Style Display Name for the Blanket Purchase Agreement document type as specified in the Style "Standard Style"

Style Display Name for the Contract Purchase Agreement document type as specified in the Style "Standard Style"

Procurement BU

  1. Assigned Procurement BU of the worker, if there is one and only one active assignment.

  2. Profile option "Default Procurement Business Unit", if there is more than one active assignment for the worker

Same as purchase order

Same as purchase order

Retroactive Pricing Terms

Not applicable

Procurement Business Function Configuration of the Procurement BU

Not applicable

Required Acknowledgment

None

None

None

Requisitioning BU

  1. Client of the Procurement BU if there is only active client.

  2. Buyer's Procurement BU Assignment details, if there are multiple clients of the Procurement BU

Same as purchase order

Same as purchase order

Supplier Site

Supplier, if there is only one active purchasing site for the Procurement BU with an active site assignment for the Requisitioning BU

Supplier, if there is only one active purchasing site for the Procurement BU

Supplier, if there is only one active purchasing site for the Procurement BU

Supplier Contact

Supplier Site, if there is only one active contact for the site

Same as purchase order

Same as purchase order

Taxation Country

Country of the Legal Entity of the Sold-to BU

Not applicable

Not applicable

Use Requested Delivery Date

Not applicable

Procurement Business Function Configuration of the Procurement BU

Not applicable

Use Ship-to Organization and Location

Not applicable

Procurement Business Function Configuration of the Procurement BU

Not applicable

To minimize document creation time and reduce errors, a comprehensive defaulting mechanism is used to provide most required purchasing document line information. In this context, default means that the application provides this information for you when you create a new line. It does not mean that you can always change the defaulted information.

Purchasing Document Line Defaulting Rules

The line portion of a document contains the details that apply to the lines.

The table lists the line fields that can display on a purchasing document page. The following columns indicate where the default comes from for that document type. Document types include purchase orders and blanket purchase agreements.

  • These rules do not apply to the case when a line is brought over from the catalog or requisition line.

  • When information labels are listed as 1, 2, 3, and so on, the application looks first to the option specified as number 1. If information is not available in this source, it uses the next numbered source.

Line Fields Purchase Order Blanket Purchase Agreement

Allow Price Override

Not applicable

Unchecked for goods lines and checked for services lines

Category

  1. Item as defined in the Ship-to Organization

  2. Line Type

Same as purchase order

Deliver-to Location

  1. Requester's location if its ship-to location matches the ship-to location of the line

  2. Ship-to location of the line

Not applicable

Description

Item as defined in the Ship-to Organization

Not applicable

Destination Type

  1. "Inventory" if item is stockable in Ship-to Organization

  2. "Expense"

Not applicable

Hazard Class

  1. Source Agreement Line

  2. UN Number

  3. Item as defined in the Ship-to Organization

  1. UN Number

  2. Item as defined in the Inventory Organization on Procurement Business Function Configuration of the Procurement BU

Invoice Close Tolerance Percent

  1. 100 if procurement card on the header

  2. Item as defined in the Ship-to Organization

  3. Configure Procurement Business Function

  4. Set it to "0"

Not applicable

Invoice Match Option

  1. Item as defined in the Ship-to Organization

  2. Line Type

  3. Supplier Site

  4. "Order"

Not applicable

Location

  1. Header

  2. BU assignment record of the source agreement corresponding to the Requisitioning BU

  3. Supplier Site Assignment record of the supplier site in the Requisitioning BU

  4. Requisitioning Business Function Configuration of the Requisitioning BU

Not applicable

Match Approval Level

  1. Item as defined in the Ship-to Organization

  2. Line Type

  3. Supplier Site

  4. Procurement Business Function Configuration of the Procurement BU

  5. "2-Way"

Note that if the default value is "4-Way" and the purchase basis is services then set to "3-Way."

Not applicable

Negotiated

  1. Source Agreement

  2. Unchecked

Checked

Organization

  1. Inventory Organization associated with the line Ship-to Location

  2. Inventory Organization associated with the header Ship-to Location

  3. Deliver-to Organization from the Requisitioning Business Function Configuration of the Requisitioning BU

Not applicable

Price

  1. Source agreement

  2. Item as defined in the Inventory Organization on Procurement Business Function Configuration of the Procurement BU

Item as defined in the Inventory Organization on Procurement Business Function Configuration of the Procurement BU

Price Break Type

 

Procurement Business Function Configuration of the Procurement BU

Secondary Quantity

Based on the conversion of the primary UOM and secondary UOM if the Defaulting definition of the UOM for the item is "Fixed" or "Default"

Not applicable

Supplier Item

Source agreement

Not applicable

Type

  1. Procurement Business Function Configuration of the Procurement BU

  2. Document Style

  3. "Goods."

Same as purchase order

UN Number

  1. Source agreement line

  2. Item as defined in the Ship-to Organization

Item as defined in the Inventory Organization on Procurement Business Function Configuration of the Procurement BU

UOM

  1. Item as defined in the Ship-to Organization

  2. Line Type

  1. Item as defined in the Inventory Organization on Procurement Business Function Configuration of the Procurement BU

  2. Line Type

To minimize document creation time and reduce errors a comprehensive defaulting mechanism is used to provide most required purchasing document line information. In this context default means that the application provides this information for you when you create a new line. It does not mean that you can always change the defaulted information.

Purchase Order Schedule Default Rules

The shipment portion of an order contains the details that apply to the schedule default rules.

The table lists the schedule fields that can display on the purchase order page. The following column indicates where the default comes from.

  • These rules do not apply to purchase order lines brought over from a catalog or requisition lines.

  • In the following table, when options for a purchase order schedule default rule are listed as 1, 2, 3, and so on, this means the application looks first for the option specified as number 1. If information is not available in this source, it uses the next numbered source, and so on.

Schedule Fields Purchase Order Default Rules

Accrue on Receipt check box

If the schedule's Destination Type field is set to Inventory, then the Accrue on Receipt check box is selected by default.

If the schedule's Destination Type is set to Expense, the Accrue on Receipt check box is selected or deselected by default, as follows:

  1. If the Accrue Expense Items option of the Manage Common Options for Payables and Procurement task is set to Period End, then the Accrue on Receipt check box is deselected.

  2. If the Accrue Expense Items option of the Manage Common Options for Payables and Procurement task is set to At Receipt, and the schedule's Match Approval Level field is set to 3-Way or 4-Way, then the Accrue on Receipt check box is selected.

  3. If the Accrue Expense Items option of the Manage Common Options for Payables and Procurement task is set to At Receipt, the schedule's Match Approval Level field is set to 2-Way, and the value for the Receipt Close Tolerance field is not100 percent, then the Accrue on Receipt check box is selected.

  4. If the Accrue Expense Items option of the Manage Common Options for Payables and Procurement task is set to At Receipt, the schedule's Match Approval Level field is set to 2-Way, and the value for the Receipt Close Tolerance field is 100 percent, then the Accrue on Receipt check box is deselected.

Allow Substitute Receipts check box

The Allow Substitute Receipts check box is selected or deselected by default, based on its settings in the following:

  1. The item definition in the ship-to organization.

  2. The supplier site.

  3. The receiving options for the ship-to organization.

  4. Otherwise, the Allow Substitute Receipts check box is deselected by default.

Country of Origin

The Country of Origin field's default value is derived from the corresponding value in the following:

  1. The item definition in the ship-to organization.

  2. The supplier site.

Destination Type

The Destination Type field's default value is derived from the following:

  1. The schedule's associated purchase order line.

  2. If the item definition in the ship-to organization is Stockable, then the destination type's default value is Inventory.

  3. Otherwise, the default value is Expense.

Deliver-to Location

The Deliver-to Location field's default value is derived from the corresponding value in the following:

  1. The requester's location, if the requester is specified, and if the ship-to location matches that of the related purchase order line.

  2. Otherwise, the default value is the schedule's ship-to location.

Early Receipt Tolerance in Days

The Early Receipt Tolerance in Days field's default value is derived from the corresponding value in the following:

  1. The item definition in the ship-to organization.

  2. The supplier site.

  3. The receiving options of the ship-to organization.

  4. Otherwise, the default value is 0 days.

Invoice Close Tolerance Percent

The Invoice Close Tolerance Percent field's default value is derived from the following:

  1. If the Procurement Card field displays on the purchase order header, then the default value is 100 percent.

  2. The item definition in the ship-to organization.

  3. The Configure Procurement Business Function task for the procurement business unit.

  4. Otherwise, the default value is 0 percent.

Invoice Match Option

The Invoice Match Option field's default value is derived from the corresponding value in the following:

  1. The item definition in the ship-to organization.

  2. The line type.

  3. The supplier site.

  4. Otherwise, the default value is Order.

Late Receipt Tolerance in Days

The Late Receipt Tolerance in Days field's default value is derived from the corresponding value in the following:

  1. The item definition in the ship-to organization.

  2. The supplier site.

  3. The receiving options of the ship-to organization.

  4. Otherwise, the default value is 0 days.

Location

The Location field's default value is derived from the corresponding value in the following:

  1. The ship-to organization from the associated purchase order line.

  2. The business unit assignment record of the source agreement, corresponding to the requisitioning business unit.

  3. The supplier site assignment of the requisitioning business unit.

  4. The Configure Requisition Business Function task for the requisitioning business unit.

Match Approval Level

The Match Approval Level field's default value is derived from the corresponding value in the following:

  1. The item definition in the ship-to organization.

  2. The line type

  3. The supplier site.

  4. The Configure Procurement Business Function task for the procurement business unit.

  5. If the result of rules 1 through 4 is a default value of 4-Way match, and the associated purchase order line's type is Services, then the default value is set to 3-Way match.

  6. Otherwise, the default value is 2-Way match.

Organization

The Organization field's default value is derived from the corresponding value in the following:

  1. The inventory organization associated with the schedule's location.

  2. The inventory organization associated with the location of the purchase order line.

  3. The deliver-to organization from the Requisitioning Business Function Configuration task for the requisitioning business unit.

Over-receipt Action

The Over-receipt Action field's default value is derived from the corresponding value in the following:

  1. The item definition in the ship-to organization.

  2. The supplier site.

  3. The receiving options for the ship-to organization.

  4. Otherwise, the default value is None.

Over-receipt Tolerance Percent

The Over-receipt Tolerance Percent field's default value is derived from the corresponding value in the following:

  1. The item definition in the ship-to organization.

  2. The supplier site.

  3. The receiving options for the ship-to organization.

  4. Otherwise, the default value is set to 0 percent.

Receipt Close Tolerance Percent

The Receipt Close Tolerance Percent field's default value is derived from the corresponding value in the following:

  1. The item definition in the ship-to organization.

  2. The line type.

  3. The Configure Procurement Business Function task for the procurement business unit.

  4. Otherwise, the default value is set to 0 percent.

Receipt Date Exception Action

The Receipt Date Exception Action field's default value is derived from the corresponding value in the following:

  1. The item definition in the ship-to organization.

  2. The supplier site.

  3. The receiving options for the ship-to organization.

  4. Otherwise, the default value is set to None.

Receipt Routing

If line type is set to have a purchase basis of Goods, the Receipt Routing field's default value is derived from the following:

  1. The item definition in the ship-to organization.

  2. The supplier site.

  3. The receiving options for the ship-to organization.

If the line type has a purchase basis of Services, then the receipt routing default is Direct Delivery.

Secondary Quantity

If the default definition of the Unit of Measure (UOM) field for the item is Fixed or Default, then the default value for the Secondary Quantity field is derived from the primary quantity, based on the conversion of the primary UOM and secondary UOM.

Ship-to Exception Action

The Ship-to Exception Action field's default value is derived from the corresponding value in the following:

  1. The item definition in the ship-to organization.

  2. The supplier site.

  3. The receiving options for the ship-to organization.

  4. Otherwise, the default value is None.

To minimize document creation time and reduce errors a comprehensive defaulting mechanism is used to provide most required purchasing order distribution information. Default, in this context, means that the application provides this information for you when you create a new distribution. It does not mean that you can always change the defaulted information.

Purchase Order Distribution Defaulting Rules

The distribution portion of an order contains the details that apply to the distributions:

The table lists the distribution fields that can appear on a purchasing document page. The following column indicates where the default comes from..

  • These rules do not apply to the case when a line is brought over from the catalog or a requisition line.

  • When information labels are listed as 1-2-3, the application looks first for the option specified as 1. If information is not available in this source, it uses the next numbered source.

Distribution Fields Purchase Order

Conversion Date

Header

Conversion Rate

Header

Deliver-to Location

  1. Schedule

  2. Requester's location, if the ship-to location matches that of the schedule

  3. Ship-to Location of the associated schedule

The application validates a purchasing document against a set of rules to ensure that this is a valid purchasing document. If it is not, an error or warning is provided.

Document Validation Checks

You can validate your a purchasing document or change order using the Validate action. If there is an error or warning, the application displays a dialog listing all errors and warnings for you to review. When you submit a document or a change order for approval, the application executes the same validation checks. Some of these validations are performed prior to a change order creating a new version of the document. This ensures that the changes are still relevant in the context of the current state of the document life cycle. For example, any reduction in ordered quantity takes into account any recent receipts and does not reduce the quantity beyond what has already been received.

This table lists some of these validation checks, and indicates the document type and document level each validation check is applied to. If a validation check applies to a document type, a Y is displayed in the column. If a validation does not apply to a document type, an N is displayed in the column. Purchasing document types include: purchase order, blanket purchase agreement and contract purchase agreement.

Validation Level Purchase Order Blanket Purchase Agreement Contract Purchase Agreement

The agreement must be assigned for usage to at least one requisitioning BU.

Header

N

Y

Y

The amount limit must be greater than or equal to the minimum release amount.

Header

N

Y

Y

Amount limit of an agreement cannot be reduced below the amount that has already been released.

Header

N

Y

Y

The document must have a supplier site

Header

Y

Y

Y

The document must have a supplier.

Header

Y

Y

Y

The document must have at least one line.

Header

Y

Y

N

Total amount released cannot exceed the amount limit on the agreement.

Header

Y

N

N

The amount released against an agreement on the order must be greater than or equal to the minimum release amount specified on the agreement.

Header

Y

N

N

The amount released against an agreement line on the order must be greater than or equal to the minimum release amount on the agreement line.

Header

Y

N

N

If supplier hold enforcement is in place, supplier site on the document must not be on purchasing hold.

Header

Y

Y

Y

If retroactive pricing is enabled for open orders only and any accounting has happened on the line then price cannot be changed.

Line

Y

N

N

The line ordered amount must be equal to the sum of the ordered amount of all schedules of the line.

Line

Y

N

N

The line price change exceeds the price update tolerance specified on the blanket purchase agreement.

Line

N

Y

N

The price limit must be greater than or equal to the price if price override is allowed.

Line

N

Y

N

The purchase order line price must be less than or equal to the source agreement price limit.

Line

Y

N

N

The purchase order line quantity must equal the sum of its schedule quantities.

Line

Y

N

N

The ordered amount cannot exceed the approved amount of the requisition line by more than the price change tolerance amount specified for the requisitioning BU.

Schedule

Y

N

N

The ordered amount must be greater than or equal to the received amount for service lines.

Schedule

Y

N

N

The ordered quantity must be greater than or equal to the received quantity for goods lines.

Schedule

Y

N

N

The price on the order cannot exceed the price on the requisition line by more than the price change tolerance percentage specified for the requisitioning business unit.

Schedule

Y

N

N

The purchase order schedule quantity must equal the sum of its distribution quantities.

Schedule

Y

N

N

The schedule order amount must be equal to the sum of its distribution ordered amounts.

Schedule

Y

N

N

The secondary quantity is required for a dual UOM controlled item.

Schedule

Y

N

N

The supplier must be an approved supplier for items requiring an approved supplier.

Schedule

Y

Y

N

The supplier must not be a debarred supplier.

Schedule

Y

Y

Y

The ordered amount must be greater than or equal to the billed amount.

Distribution

Y

N

N

The ordered amount must be greater than or equal to the delivered amount.

Distribution

Y

N

N

The ordered quantity must be greater than or equal to the billed quantity.

Distribution

Y

N

N

The ordered quantity must be greater than or equal to the delivered quantity.

Distribution

Y

N

N

Using Keyword Searches in Oracle Fusion Purchasing: Explained

When you initially arrive on the Manage Orders or the Manage Agreements pages, you can enter values into the Keywords field. Using the keywords field, you can perform a full or partial search. The application searches for a match between the value you enter and either the supplier name, supplier number, purchase order number, or agreement number.

Updating the Procurement Keyword Search Index: How It's Processed

Two scheduled processes synchronize the Procurement Keyword Search Index with data updated in the Oracle Procurement Cloud tables.

Name Description

Update Purchasing Keyword Search Index

Updates the search index with new data. For example, the purchase order number for a purchase order you created is added to the index. The default setting for this scheduled process is to run every 30 minutes.

Maintain Procurement Keyword Search Index

Maintains the search index with existing data that is updated. For example, a supplier name you changed is added to the index. The default setting for this scheduled process is to run once daily.

Settings That Affect Procurement Keyword Search Index Updates

Since the two scheduled processes are set up to run at the specified default intervals, no extra setup is required. If needed, you can change the default setup for the scheduled processes to run on a frequency that better meets the needs of your organization. To do this, sign in with the Procurement Application Administrator role, and from the Navigator click Scheduled Processes.

Set Up Descriptive Flexfield Copying from Requisitions to Purchase Orders

You can use profile options to control whether the application copies descriptive flexfields from requisitions to purchase orders.

You have the option to copy flexfields from requisitions to associated purchase orders at the following levels:

  • header to header

  • line to line

  • distribution to distribution

To configure the profile options, follow these steps:

  1. Access the Manage Administrator Profile Values task in the Setup and Maintenance work area, Procurement Foundation functional area.

  2. On the Manage Administrator Profile Values page, enter the profile option code or name and click Search.

  3. In the Search Results, click to select the row for the profile option.

  4. You can configure the profile option at the site level only. In the Profile Values section, select Yes to enable the profile option, or No to disable it.

List of Profile Options

This table lists the profile options you can use to control the copying of descriptive flexfields from requisitions to purchase orders.

Profile Option Code Profile Option Name Description

PO_COPY_REQ_HDR_DFF_TO_PO

Requisition Header Descriptive Flexfields Copied to Purchase Order Headers

Enable descriptive flexfields to be copied from a requisition header to the corresponding purchase order header.

PO_COPY_REQ_LINE_DFF_TO_PO

Requisition Line Descriptive Flexfields Copied to Purchase Order Lines

Enable descriptive flexfields to be copied from a requisition line to the corresponding purchase order line.

PO_COPY_REQ_DFF_TO_PO

Requisition Distribution Descriptive Flexfields Copied to Purchase Order Distributions

Enable descriptive flexfields to be copied from a requisition distribution to the corresponding purchase order distribution.

When you enable these profile options:

  • Copying of descriptive flexfields is enabled in the automated and manual requisition to purchase order creation flows.

  • Grouping of requisitions and requisition lines on a purchase order is prevented.

  • If either the header profile (PO_COPY_REQ_HDR_DFF_TO_PO) or the line profile (PO_COPY_REQ_LINE_DFF_TO_PO) is set, requisition line grouping is prevented.

  • If the header profile (PO_COPY_REQ_HDR_DFF_TO_PO) is not set, requisition grouping is allowed.

  • Grouping requisition lines on a single PO line is prevented in all cases.

If your purchase order line is sourced to a blanket purchase agreement, the order line price is determined based on the following. The order line price is based on a matching price break from the agreement line, if there is one. In the absence of any matching price breaks, the price is determined from the agreement line itself.

Purchase Order Pricing

To identify a matching price break, the application performs the following checks:

  1. For noncumulative price breaks, if the price break quantity is not less than the ordered quantity from the current order.

  2. For cumulative price breaks, if the price break quantity is not less than the ordered quantity from the current order, plus any quantity that has already been ordered.

  3. For the pricing date, if the date is within the effective period of the price break.

    The pricing date by default is the requested delivery date from the order line, or the current calendar date if the order line does not have a requested delivery date specified.

  4. If the price break ship-to organization, or the location when specified, matches those from the current order line.

If more than one price break satisfies these conditions, then the application uses the lowest price from these price breaks.

Project Information in Requisitions and Purchase Orders: Explained

You can create and manage requisitions and purchase orders for sponsored project expenditures. For purchase orders, use the Project Details section of the order's line distribution to enter project information.

Aspects of using project information in requisitions and purchase orders that are covered in this topic are:

  • Project attributes in requisitions and purchase orders.

  • Project costing integration.

  • Additional areas where project attributes are used.

  • Setup considerations.

Project Attributes in Requisitions and Purchase Orders

You can track sponsored project information in requisitions and purchase orders using these fields:

  • Project Number

  • Task Number

  • Expenditure Item Date

  • Expenditure Type

  • Expenditure Organization

  • Contract Number

  • Funding Source

Project Costing Integration

You can use the following fields to support integration with Oracle Fusion Project Costing, but only for requisitions and orders with an expense destination type. These project costing fields are not enabled for lines with an inventory destination type:

  • Expenditure Item Date

  • Expenditure Type

  • Expenditure Organization

Additional Areas Where Project Attributes Are Used

Sponsored project information can also be used when:

  • Importing requisitions or purchase orders through the Cloud Import Template, Open Interface, or from external applications through a web service.

  • Setting up account generation defaults.

  • Setting up approval routing and rules.

Setup Considerations

Your organization must implement the Project Costing functional area of the Project Financial Management offering, using the Setup and Maintenance work area. This enables the display of the Project Costing Details and Project Details sections in requisitions and purchase orders, respectively.

Structured One-Time Delivery Address in Purchase Orders: Explained

As a buyer you can see a structured one-time delivery address while processing a requisition line into a purchase order, and while viewing and editing a purchase order that has a backing requisition.

Key details you should know about a structured one-time delivery address on a purchase order include:

  • What is a structured one-time delivery address?

  • How is it displayed on a purchase order?

  • How is it used in a purchase order?

Purpose of a Structured One-Time Delivery Address

When the feature is enabled in the application, a requester can enter a structured one-time delivery address for shipping when entering a requisition. The requester can use a structured one-time delivery address when a delivery should be made to a unique address not attached to an existing location in the application.

Structured one-time delivery address information is captured on a purchase order having a line sourced from the requisition. As a buyer, you cannot enter or edit a structured one-time delivery address directly on a purchase order. You cannot change the address on a purchase order line, schedule or distribution having a structured one-time address.

When the feature is enabled in the application, existing purchase orders created from requisitions with free-format one-time addresses are not automatically upgraded to the structured one-time address format.

How a Structured One-Time Delivery Address is Displayed on a Purchase Order

On a purchase order, a structured one-time delivery address is displayed in the fields for the Ship-to Location and Deliver-to Location. Structured one-time delivery address information is displayed in the same format as in the source requisition. As a buyer you can see the structured one-time delivery address wherever the ship-to or deliver-to location is shown in a purchase order, such as:

  • Process Requisitions page, in the Search Results: Requisition Lines section

  • Process Requisitions: Add to Document Builder dialog

  • Process Requisitions: Edit Document Builder page

  • Requisition Lines page, in the Search Results section

  • Manage Orders page, Schedules tab, in the Search Results

  • Purchase Order and Change Order pages, on the Main tab, in the General section

  • Purchase Order and Change Order pages: Lines, Schedules and Distributions tabs, in both tables and details pages

Hover over a structured one-time delivery address to view a tool tip displaying the full address. You can also click the contextual icon next to a structured one-time delivery address to view the location on a map.

On the Manage Orders pages you cannot use the existing Ship-to Location and Deliver-to Location fields to search based on structured one-time address attributes.

How a Structured One-Time Delivery Address is Used in a Purchase Order

The application calculates taxes based on the structured one-time delivery address entered on the source requisition, and displays the taxes on the purchase order.

You can communicate the structured one-time delivery address to the supplier using all supported methods, including PDF and electronic communication. For electronic communication, both Oracle B2B and Oracle Collaboration Messaging Framework Cloud are supported frameworks.

Unstructured One-Time Delivery Address in Purchase Orders

As a buyer you can see an unstructured one-time delivery address while processing a requisition line into a purchase order. You can also see such an address while viewing and editing a purchase order that has a backing requisition. Your ability to see an unstructured one-time address is subject to the configuration of your application.

Key details you should know about an unstructured one-time delivery address on a purchase order include:

  • What is the purpose of an unstructured one-time delivery address?

  • How is the address displayed on a requisition line?

  • How is the address displayed on a purchase order?

Purpose of an Unstructured One-Time Delivery Address

When the application is configured to allow it, a requester can enter a one-time address when entering a requisition line. They would do this when a delivery should be shipped to a unique address not attached to an existing location in the application. The requester enters an unstructured one-time address into a free-form field.

How the Address is Displayed on a Requisition Line

You can see an unstructured one-time delivery address on a requisition line when all the following conditions apply:

  1. The Capture One-Time Delivery Address in Structured Fields on Requisitions feature is not enabled. It's found in the Offerings work area, Procurement offering, Procurement Foundation functional area.

  2. The Allow One-Time Address option is selected for the requisitioning business unit. It's configured in the Configure Requisitioning Business function task in the Setup and Maintenance work area, in the Procurement Foundation functional area.

  3. The requester has entered an unstructured one-time address on the requisition line.

How the Address is Displayed in a Purchase Order

You can see the unstructured one-time delivery address captured in an attachment on a purchase order schedule sourced from a requisition line having such an address. You cannot enter or edit an unstructured one-time delivery address directly on a purchase order. You cannot change the address on a purchase order schedule having such an address.

The unstructured one-time address is included on the purchase order line in the purchase order PDF communicated to the supplier.

Cancel Purchase Order

What happens if a purchasing document is canceled?

As a procurement agent, you can terminate an existing contract to buy from a supplier by canceling document headers, lines, or schedules. Canceled documents can be communicated to the supplier. The communicated documents are marked with a cancellation notice to highlight this action to the supplier.

When you cancel a purchase order entity, you are still able to receive or pay for canceled items and services as well as pay for all previously received orders up to the over-receipt tolerance based on the new ordered after cancellation.

As a supplier, you can also terminate an existing contract to supply items by canceling document headers, lines, or schedules. Such cancellation request requires review and approval by the buying organization.

You cannot modify a canceled entity or its components. For example, if you cancel a line you cannot modify the associated schedules and distributions.

Use the Actions menu to cancel a document.

Create Purchase Order from Requisition

Use the Process Requisitions page to search for, select and group existing requisition demand, to create procurement documents. You can find the page in the Purchase Agreements or Purchase Orders work areas, using the Process Requisitions task.

Search for requisition lines using entered or saved search parameters. Select all requisition lines that meet your procurement needs. Once you have identified the appropriate requisition lines, you can add them to the document builder and create your order or negotiation. Define the document builder outcome using document type, document style, and line grouping.

When the application is configured to copy descriptive flexfields from requisition headers or lines to corresponding purchase order headers or lines, you cannot group requisitions and requisition lines. If you manually enter multiple lines in the Edit Document Builder page, line grouping options are disabled in the Actions drop-down list.

Create Purchase Order from Requisition Automatically

Purchase Order Automated Order Creation: Explained

You can use automated order creation to automatically convert an approved requisition into a purchase order, and communicate it to the supplier. Automated order creation can be done with no manual intervention from a procurement agent.

Automated ordering, or touchless buying, mimics the manual process by:

  • Finding a supplier to source the items from.

  • Finding an agreement with the supplier to derive terms and conditions, including the price.

You can configure automated order buying for requisitions created in the following ways:

  • Requisitions for catalog items, including:

    • Items from agreements

    • Punchout catalog items

  • Requisitions imported through the requisitions open interface

Requisitions sourced to a contract purchase agreement must have the Negotiated check box selected on the requisition line in order to be automatically converted to a purchase order.

Automating Order Creation for Requisitions Without Previously Negotiated Agreements: Procedure

You can configure automated purchase order creation from purchase requisitions, without using previously negotiated blanket or contract purchase agreements.

Use this feature to automatically generate purchase orders from approved requisitions having requisition lines with the following characteristics:

  • There is no associated purchase agreement.

  • Valid supplier information is provided.

  • Purchasing terms (prices, terms, conditions, quantity, and so on) are already negotiated with the supplier.

To configure automated order creation from requisitions, without using previously negotiated agreements, perform these tasks:

  1. In the procurement business function setup for each impacted business unit, select the following check box: Autogenerate orders from requester-negotiated requisition lines.

    1. Use the Configure Procurement Business Function task. Find the task in the Setup and Maintenance work area, Procurement offering, Procurement Foundation functional area.

      When you select the option, requisition lines marked as Negotiated are automatically processed to purchase orders, even without any purchase agreement reference.

  2. Use Page Composer to modify relevant pages to display the Negotiated check box. The check box is hidden by default.

    Pages you may choose to modify include the Smart Form, Noncatalog Request, Requisition Line Entry, and Edit Requisition.

  3. Assign the following security privilege to affected requesters: Create Requisition with Changes to Negotiated Indicator.

    When assigned this privilege, requesters can set requisition lines as Negotiated when creating requisitions.

  4. Optionally, set up Smart Forms for associated requisitioning transactions.

You can also use the Negotiated option when importing requisitions using the Purchase Request Web Service or file-based data import. The Negotiated option is also referred to as Negotiated By Preparer.

How can I automatically generate an order from a requisition, without a previously negotiated agreement?

When entering a requisition, select the Negotiated check box on the requisition line.

Your ability to mark a requisition line as negotiated is subject to your organization's configuration of the application, and your security privileges. You must provide valid supplier information for the requisition. Purchasing terms (prices, terms, conditions, quantity, and so on) must already be negotiated with the supplier.

What's the difference between negotiated and negotiation required?

Negotiated means the purchasing terms (prices, terms, conditions, quantity, and so on) for a requisition line are already negotiated with the supplier. You select the option on a requisition line to support automated purchase order creation from the requisition, without the need for a previously negotiated blanket or contract purchase agreement.

Negotiation Required means that further negotiation with the supplier is required to determine the purchasing terms. You should complete the negotiation process before you create the purchase order. From the Process Requisition page, you can create the negotiation document with the requisition line information. Alternatively, you can negotiate purchasing terms offline, and process the requisition line into a purchase order without having a formal negotiation. The application provides a warning that you are bypassing the formal negotiation process, but you can continue.

Creating a Purchase Order for Another Legal Entity: Example

You can increase operational efficiency by allowing a legal entity to procure goods and services for another legal entity without having to produce formal intercompany buy and sell documentation. In this case there is no integration with Oracle Fusion Supply Chain Financial Orchestration.

Scenario

The Vision Service, US Distribution unit, orders a service from a favored supplier, Value Services. Vision Service has the service delivered to Vision Automotive, East Coast Distribution unit.

This figure shows the transaction in a flow diagram.

  • The requesting entity is Vision Automotive, US East Coast Distribution unit. They are legal entity 1, business unit 2.

  • The ordering entity is Vision Service, US Distribution unit. They are legal entity 2, business unit 3.

  • The supplier is Value Services. They are US supplier site 1.

As a result, legal entity 1 receives services from a supplier that are ordered by legal entity 2.

Diagram showing Vision Service, US Distribution
unit, ordering a service from a favored supplier, Value Services.
The service is delivered to Vision Automotive, East Coast Distribution
unit.
Need for Multiple Legal Entities

Enterprises often have multiple legal entities across countries and at times multiple legal entities are registered even within a country. In order to be cost effective, members of closely related legal entities devise ways to take advantage of scale. A few ways they achieve this are; by enabling one legal entity to procure goods on behalf of several other related legal entities and thus benefiting from volume purchases or by channeling purchases for resale through legal entities located in favorable tax jurisdictions, resulting in lower effective tax rates on corporate financial statements.

Analysis

The following prerequisite is required:

  • Allow Multiple Legal Entities on Order is set to Allow on the Configure Requisitioning Business Process page.

Create the Purchase Order

The buyer creates a purchase order in legal entity A (header sold-to legal entity) but there are schedules that have ship-to organizations pointing to legal entity A and B. The balancing segment on the account will correspond to legal entity A. Intercompany Payables and Receivables invoices are not be created in this case. However, intercompany journal entries are created in the general ledger once the transaction is accrued.

Intercompany Purchase Order With Formal Documentation: Example

Using a financial orchestration flow, you can increase tax efficiency in your supply chain by automatically routing your purchases from a supplier in a given country through one or more legal entities registered in favorable tax jurisdictions.

This can be formalized using Oracle Fusion Supply Chain Financial Orchestration to:

  • Enforce the sold-to legal entity on a purchase order using an eligible financial orchestration flow.

  • Control the usage of a financial orchestration flow based on rules authored using attributes such as supplier country and item category.

Scenario

Business units 1 and 2, US West Coast Distribution and US East Coast Distribution, roll up to legal entity 1, Vision United States. Purchase orders are issued by either of these requesting business units to a Chinese supplier site, China Supplier Site 1. The purchase orders have the sold-to legal entity set to a Chinese subsidiary, Vision China. The immediate liability for the purchases is not assumed by the requesting organization, rather it is assumed by the Chinese subsidiary. In such cases, the requesting organization typically does not have direct relationship with the supplier site fulfilling the order. Instead, it is the subsidiary that enters into a contract with the supplier site to buy the ordered goods.

This figure shows the transaction in a flow diagram.

  • The requesting entity is Vision United States, US East Coast Distribution unit. They are legal entity 1, business unit 2.

  • The sold-to legal entity with liability for the purchase is Vision China, China Distribution unit. They are legal entity 2, business unit 3.

  • The supplier is Beijing Specialties. They are China supplier site 1.

Diagram showing Vision China, China Distribution
unit, as the sold-to legal entity on a purchase order to a Chinese
supplier, Beijing Specialties. The requesting legal entity is Vision
United States, US East Coast Distribution unit.

This scenario describes a financial orchestration flow (essentially a trade agreement) created in Oracle Fusion Supply Chain Financial Orchestration between two legal entities. A purchase order is created using attributes that the application can use to identify an orchestration flow. The associated sold-to legal entity is placed on the order. On each schedule the financial orchestration flow and the purchasing trade organization is captured. Based on receiving transactions, intercompany payables and receivables invoices are created.

Create Purchase Order Online

A purchase order is a commercial document that is used to request a seller to supply a product or service in return for payment. In Oracle Fusion Purchasing a purchase order can be created through an automated process or entered manually. Consider the following overall key attributes when creating a purchase order.

  • Document Style

  • Business Units (BU): Procurement BU, Requisitioning BU, Sold-to Legal Entity and Bill-to BU.

  • Supplier, Supplier Site, and Supplier Contact

  • Communication Method

  • Bill-to Location

  • Currency

Document Style

When you create a purchase order you select an appropriate document style. The document style helps to:

  • Reduce the complexity of creating a purchase order by exposing only the needed functionality on the order.

  • Control the look and feel of the user interface to match the usage of the purchase order and your business needs.

Business Units

It is important you understand the use of these business units in a purchase order.

Procurement BU

The procurement BU is responsible for procurement business functions including: supplier management, contract negotiation and administration, and purchase order issuance and administration. As a buyer, you can only create purchase orders for those business units who are identified as clients of your procurement BU. Depending on business requirements, a procurement BU can either:

  • Perform these functions in response to its own requirements for purchased goods and services.

  • Serve as a shared procurement service center that can process requisitions from multiple "client" business units.

Your procurement BU affiliation also gives you access to process those requisitions originating from these clients, and identified for processing in your procurement BU.

Requisitioning BU

The requisitioning BU, the business unit where the items are needed, is also typically the business unit that bears financial responsibility for the purchase.

Sold-to Legal Entity

In certain scenarios, businesses find it beneficial to channel purchases through international subsidiaries instead of directly dealing with suppliers. Examples include scenarios dealing with global trade or supply chain. The reasons range from country-specific legal requirements to favorable tax treatment. The sold-to legal entity on the purchase order identifies the party the purchase order goods or services are sold to. The sold-to legal entity is a legal entity with a tax registration number, and is liable for the purchase. Purchase order document numbers are sequenced uniquely for a sold-to business unit.

Bill-to BU

The bill-to BU identifies the business unit responsible for processing invoices for the purchase order. The supplier site assignment record identifies the bill-to business unit for a client business unit. In the local procurement scenario, the client is the requisitioning business unit. You can centrally process invoices for orders from multiple requisitioning business units in a single bill-to business unit on the purchase order.

Supplier, Supplier Site, and Supplier Contact

Enter or select the name of the Supplier for this purchase order. To submit a purchase order for approval, you must provide a supplier.

Note: You cannot change the supplier after the purchase order is open. The purchase order becomes a legal document when you and the supplier approve it (acknowledgment optionally may be required). To change the supplier after you approve a purchase order, you must cancel the existing purchase order. Then create a new one for the other supplier.

Enter or select the Supplier Site for this purchase order. If the supplier you choose has only one site, the value populates this field. Before you can submit a purchase order for approval, you must provide a supplier site.

You can optionally enter the name of the contact at the supplier site. If the supplier you choose has only one contact name, the value populates this field.

Communication Method

You can communicate your purchase orders and agreements, along with any attachments to suppliers using print, fax, or email. Attachments might include amendments, contract terms and contractual deliverables.

You can also communicate purchase orders and their change orders using the following electronic business to business applications:

  • Oracle B2B e-Commerce Gateway

  • Oracle Fusion Collaboration Messaging Framework

For electronic business to business communication, you can only communicate attachments with purchase orders and change orders when using Oracle Collaboration Messaging Framework.

The default communication method on the document is from the specified supplier site's preferred communication method.

The application automatically initiates the communication process upon approval of the document, if:

  • A communication method other than None is specified on the document.

  • Or the supplier site is set up for communication by means of business to business electronic communication.

Alternatively, you can communicate documents to your supplier in batch by scheduling the Communicate Purchasing Documents process. The process sends the communication using the method specified on the purchasing document.

To resend your document, use the Communicate action. With this action you can use a communication method different from the supplier's preferred communication method.

Bill-to Location

Enter the Bill-to Location for the purchase order. If you entered a supplier and supplier site, the default location is the location you assigned to the supplier or supplier site. You can accept this value or change it to another location.

Currency

Enter or select the Currency for the purchase order. You can change currency information until the purchase order is approved.

Use the Terms region to enter terms and shipping information for a purchase order. Key attributes to consider here are:

  • Acknowledgment

  • Payment Terms

  • Freight Terms

  • FOB

  • Pay on receipt

  • Confirming order

Acknowledgment

Select an acknowledgment method if you require the supplier to accept your document before it becomes legally binding and can be executed. If you select a method, you can enter the Acknowledgment Within Days, which indicates when you require the supplier to return an acknowledgment for your order.

Choices for Acknowledgment method are:

  • Document: This method applies to all purchasing documents. The supplier must accept or reject the document in its entirety, no exceptions allowed.

  • Document and Schedule: This method applies only to purchase orders. This option allows suppliers to provide order acknowledgment response (accept or reject) on a schedule by schedule basis. Using this option allows suppliers to fulfill the accepted items on the order while renegotiating the other items using a change order.

  • Document and Line: This method applies only to blanket purchase agreements. This option allows suppliers to provide an acknowledgment response (accept or reject) on a line by line basis. Using this option allows suppliers to accept a subset of agreement lines and renegotiate the other lines.

  • None: Acknowledgment is not required to execute against the document.

Pay on Receipt

Pay on receipt means that the application will automatically generate an invoice for this purchase order when it is received. Pay on receipt automates the settlement process eliminating the need for suppliers to send a separate invoice, especially paper invoices. This reduces the load on your Accounts Payable department..

Confirming Order

Select Confirming order to indicate that the purchase order is a confirming order. A confirming order is an order that you are submitting formally to confirm a verbal order already placed with the supplier. For confirming orders, the following is printed on the purchase order header: "This is a confirming order. Do not duplicate."

Use the Lines region to enter the details of the goods or services being ordered on a purchase order. Key attributes to consider here are:

  • Line type

  • Item

  • Category

  • Shipping and Delivery

  • Source Document

Line Type

The line type feature allows you to differentiate purchases for various commodities such as goods and services. Goods are ordered by quantity and price, whereas services are ordered by price.

Implications of your selection of line type:

  • The style of the document you are creating can limit the line types that you can choose from. For example, if the style only allows for purchases of fixed price services then only fixed price services line types are available to choose from.

  • The line type is not editable once the line is saved. If you need to change your line type after saving it, you must delete the line and add another.

  • When you enter a line type, the application automatically defaults attributes for the line being created.

Item

Enter the Item you want to purchase. Typically the item is an identifier of goods already defined in your procurement catalog. If you enter a defined item, the application displays the purchasing category, item description, unit of measure, and unit price associated with the item. To create a purchase order line for a one-time item, simply skip the item number field and enter a purchasing category and an item description.

Category

When entering a line, enter or select the purchasing category of the item you want to purchase. If you choose an item, the application displays the purchasing category for the item. You cannot change the purchasing category if you choose an item.

Shipping and Delivery

The shipping and delivery location, as well as organization should default from the purchase order header information you provided. Enter or select the requested delivery date when the requester needs the item. If the supplier provided a promised delivery date of the items, enter that.

Source Document

When you are creating an order for a predefined item, the application automatically tries to detect an available source agreement that can be leveraged for this purchase.

Based on several transaction attributes like the supplier, supplier site, item, ship-to organization and location, the application looks for the appropriate approved supplier list entry. From the approved supplier list entry it deduces the source blanket or contract agreement. If there is no approved supplier list entry, then it tries to directly look for the appropriate blanket agreement based on the transaction attributes. If there is no blanket, then it tries to find a contract agreement.

These examples demonstrate why the line type feature is an important part of the purchase order. It enables you to clearly differentiate orders for goods from those for services.

Quantity-Based Purchasing

Use quantity-based line types when you want to specify the quantity, unit of measure, and unit price for the items you are ordering. Oracle Fusion Purchasing provides Goods as an initial quantity-based line type. You can modify this line type or create new quantity-based line types to satisfy your business needs.

This table provides an example of a line with the line type Goods.

Type Item Quantity UOM Price

Goods

AS54888

8

Each

$1,107

Fixed Price Services Purchasing

You can use fixed price-based line types when you want to order general business services by a fixed amount. Oracle Fusion Purchasing provides Fixed Price Services as an initial fixed price-based line type. You create an order for fixed price service by selecting a fixed price services line type, category, item description, and total amount of the service. You can receive and match fixed price services by amount.

This table provides an example of a fixed price-based line with the line type of Fixed Price Services.

Type Description Category Price

Fixed Price Services

Office Cleaning

Office Miscellaneous

$1,350

A purchase order schedule specifies the quantity, ship-to location, date you want your supplier to deliver the items on a purchase order line, and country of origin for the items. Use the Schedules region or page to enter multiple shipment schedules for standard purchase order lines and to edit schedules that were automatically created for you. When you save your work, purchase order distributions are created if sufficient valid default information is available and if there are no existing distributions. Key areas to consider for schedules are:

  • Shipping and delivery

  • Billing

Shipping and Delivery

Each purchase order line has one or more due dates and external delivery locations carried on a schedule. Create a schedule for each unique delivery address and due date. The critical information for a single schedule defaults from the line. For additional schedules the key delivery attributes are ship-to location, quantity, and required date.

Billing

Like the delivery information, if a further breakdown of the billing information is required additional schedules may have to be created for a purchase order line. For additional schedules the key billing attributes are approval matching and invoice matching,

A purchase order schedule specifies the shipment details about the item on a purchase order line. The following scenarios illustrate both the required single schedule per line and when you might have multiples. These examples only highlight common fields.

Scenario

This table provides an example of a purchase order line with one schedule per line.

Schedule Location Quantity Need-by Date

1

V1- New York City

9

8/15/2012

Scenario

This table provides an example of a purchase order line with schedules for multiple delivery dates. In this example, the schedule from the previous example is split into three shipments. Each shipment has a modified quantity and requested delivery date.

Schedule Location Quantity Need-by Date

1

V1- New York City

3

8/15/2012

2

V1- New York City

3

9/15/2012

3

V1- New York City

3

10/15/2012

A purchase order distribution specifies how the purchase order schedule is to be charged to the organization. The purchase order Distributions tab or page is used to enter distribution information for purchase order schedules or to view distributions that were automatically created for you. You can enter multiple distributions per schedule.

Billing

Enter the purchasing accounts. When you save your changes in this window, the application automatically creates the following accounts for each distribution:

  • PO Charge Account: the account to charge for the cost of this item in the purchasing operating unit

  • PO Accrual Account: the payables accrual account in the purchasing operating unit

  • PO Variance Account: the invoice price variance account in the purchasing operating unit

A purchase order distribution specifies the internal billing details about a purchase order schedule line. The following scenarios illustrate both the required single distribution per schedule and when you might have multiples. These examples only highlight common fields.

Scenario

A purchase order schedule requires at least one distribution per line. This table provides an example of a purchase order schedule with one distribution.

Distribution Destination Type Deliver-to Location Quantity PO Charge Account

1

Expense

New York HQ

4

01-510-7530-0000-000

Scenario

This table provides an example of distributions for a schedule that requires multiple delivery locations and corresponding charge accounts. This was achieved by means of splitting the distribution in the previous example. The quantity and deliver-to locations on the distribution lines are changed.

Distribution Destination Type Deliver-to Location Quantity PO Charge Account

1

Expense

New York HQ

2

01-510-7530-0000-000

2

Expense

New York Finance

2

01-550-7530-0000-000

Dynamic Determination of the Sold-To Legal Entity: How It Is Determined

A purchase order has many parties specified on it; such as a requisitioning business unit (BU), the business unit requesting goods or services, and a supplier. The sold-to party on a purchase order is the party that is liable for the purchase order, and has relationship with the location of the supplier that is going to fulfill the purchase order.

Settings That Affect Determination of the Sold-To Legal Entity

The following attributes are used by the application to determine the sold-to legal entity on a purchase order.

  • Supplier

  • Supplier Site

  • Country of the supplier site

  • Deliver-to location

  • Receiving Organization

  • Item Category

  • Item Asset Indicator

How the Sold-To Legal Entity Is Determined

The following steps are performed in and by the application to determine the sold-to legal entity on a purchase order.

  1. Information for an order such as requisition BU, supplier, and supplier site is entered. For requisition to purchase order automation the application knows this and other information from the requisition.

  2. The application checks to see if Oracle Fusion Supply Chain Financial Orchestration (SFO) is implemented. If so, it calls the SFO process and passes all the necessary information.

  3. 3. SFO gathers some additional information such as profit center BU and asset indicator and identifies a financial orchestration flow based on available attributes. The sold-to legal entity (LE) is associated with the financial orchestration flow.

  4. 4. SFO returns financial orchestration flow, sold-to LE. purchasing trade organization, and Purchasing stores them.

  5. 5. If SFO is not implemented or SFO returns no agreement and hence no LE is found then the application finds the inventory organization using following logic:

    1. If a backing requisition exists for a purchase order then the inventory organization associated with the deliver-to location is used. If none exists then the deliver-to organization specified on the Configure Requisitioning Business Function page of the requisition BU of the requisition is used.

    2. If a backing requisition does not exist then the inventory organization associated with the default ship-to location is user. If none is found then the deliver-to organization specified on the Configure Requisitioning Business Function page of the requisition BU is used.

  6. Once an inventory organization is found, the application finds the legal entity specified in the inventory organization configuration. That legal entity becomes the sold-to LE

Here is a simplified example of how that might work:

  1. A requisition is selected on the Process Requisitions page and added to the document builder.

  2. The application identifies the country of the supplier site from the supplier master for the purchase order.

  3. The application determines the inventory organization associated with the deliver-to location

  4. The application identifies the profit center BU of the inventory organization.

  5. The application checks if Oracle Fusion Financial Orchestration is enabled.

  6. If enabled, it determines the financial orchestration flow by matching the profit center BU to the receiving BU and supplier country.

  7. The sold-to legal entity specified on this flow is returned back which is included in the document builder.

  8. The sold-to legal entity is carried over to the purchase order.

As a procurement agent, you can make use of the library of legal clauses, documents and deliverables to add to your purchasing document. Oracle Fusion Procurement Contracts must be implemented. You can configure the application to automatically apply a contract template to your purchasing document, based on predefined rules. You can also add additional clauses based on responses to a set of predefined questions.

Adding Contract and Supporting Documents to a Purchasing Document: Procedure

You can add contract documents and supporting documents to a purchasing document, provided Oracle Fusion Procurement Contracts is implemented. Purchasing documents include contract purchase agreements, blanket purchase agreements, purchase orders and their change orders.

To add contract documents and supporting documents to a purchasing document follow these steps:

  1. Open the purchasing document. Depending on the type of purchasing document, from the Navigator you can use either the Purchase Agreements or Purchase Orders work area.

    • You can either create a new document or open an existing document.

  2. From the Edit Document page, click the Contract Terms tab.

    • For an existing purchasing document, if you can't see the Contract Terms tab then select Actions > Edit to open the Edit Document page.

  3. To see the Documents subtab, you must have already added contract terms. If you have previously added contract terms and you can see the Documents subtab, then skip this step and go to step 4.

    1. If you have not previously added contract terms, click the Add Contract Terms button and use the Add Contract Terms dialog box to add terms.

  4. On the Edit Document page, on the Contract Terms tab, click the Documents subtab.

  5. On the Documents subtab, you can add or remove documents using the functionality in the Contract Documents and Supporting Documents sections, respectively.

When adding supporting documents, you can categorize the documents using either the predefined attachment categories (Supporting Document and Contract Image), or any administrator-defined categories configured by your organization.

Funds Reservation for a Purchase Order: Explained

As a buyer, you can reserve funds for a purchase order that is subject to budgetary control. Based on the control budget setup, this can occur either when you submit the document, or when the document is approved. This ensures the available funds are not consumed by other transactions before the purchase order is fulfilled.

Key aspects of funds reservation for a purchase order are:

  • How funds are reserved for a purchase order.

  • Setup needed for funds reservation.

  • How encumbrance accounting interacts with reserve on submit.

  • What happens to reserved funds if the order is not approved.

  • What you can do if funds are not available in the budget.

How Funds are Reserved

Funds reservation is done automatically, either when the purchase order is submitted or approved. Funds are reserved based on the setup for the requisitioning business unit and business function.

Setup Needed for Funds Reservation

Your organization can choose the point at which funds are reserved for purchase orders, either on document submission or document approval. Do this using the Manage Budgetary Control and Encumbrance Accounting page. Find the page in the Setup and Maintenance work area, Financials offering, Manage Budgetary Control task.

How Encumbrance Accounting Interacts with Reserve on Submit

Encumbrance accounting is only created upon implementation of the purchase order or change order. No encumbrance accounting is created at submit time.

When the Order is Not Approved

If a transaction for which funds have been reserved on submission is rejected during the approval process, any funds previously reserved are either:

  • Released back to the available funds

  • Reinstated to the backing transaction

For example, a purchase order with a backing requisition for which funds were reserved at submit is rejected during the approval process. The funds are reinstated to the backing requisition.

When Funds are Not Available

When a purchase order is needed and budget is not available, you can request a funds override if:

  • Funds override is enabled for the control budget, and,

  • The overall override limit for the control budget has not been exceeded, and,

  • A funds override approver can be identified for the transaction based on the control budget's override rules.

The funds override process supports a funds override request, funds override approval and reserving funds with an override at approval.

Funds Override for Purchase Orders

As a buyer, you can submit a purchase order with insufficient funds and request a funds override. The purchase order must be subject to a control budget with funds override enabled. The funds override request is sent to the appropriate person for approval. After approval is secured, the funds are reserved for the purchase order.

Key factors affecting whether and how you can submit a request for an insufficient funds override are:

  • Prerequisites such as budgetary control setup and security privileges.

  • Submitting an order with insufficient funds.

  • Requesting override for insufficient funds.

  • Approval routing based on budgetary control setup.

  • Viewing the funds override in the purchase order.

Prerequisites

To request an insufficient funds override, you must have the function security privilege Request Budgetary Control Override. The privilege is delivered with the following roles:

  • Advanced Procurement Requester

  • Buyer

  • Category Manager

  • Procurement Manager

Your organization can also add the privilege to or remove it from a role that is configured from a copy of a predefined role.

You can request funds override for a purchase order transaction only if:

  • The transaction is subject to a control budget that has funds override enabled.

  • The override limit for the control budget is not exhausted.

  • A funds override approver can be identified.

  • The required override amount for each distribution is equal to or less than the approver's override approval limit.

Your organization sets up funds override rules for a control budget using the Manage Control Budgets task. Find the task in the Setup and Maintenance work area, Financials offering, Budgetary Control and Encumbrance Accounting functional area.

Submitting an Order with Insufficient Funds

You can submit purchase orders on the Edit Document page. Find it in the Purchase Orders work area, in tasks such as Create Order or Manage Orders. Prior to submitting a purchase order for approval, you can perform a funds check. Assuming the prerequisite criteria are met, if the transaction lacks sufficient funds you can still submit the order for approval.

Requesting Override for Insufficient Funds

When you submit a transaction and it fails funds check, you are provided the option to request an insufficient funds override request.

  1. The Warnings dialog displays the message, "The distribution failed funds check. A funds override will be requested if you submit the document."

  2. Click Continue to request a funds override.

  3. On the Warning dialog, enter a Justification and click Yes to submit the funds override request.

  4. Click OK on the confirmation dialog.

Approval Routing Based on Budgetary Control

Funds override is approved as part of the document approval process, using the override rules set up for the control budget. Your organization sets up approval rules for purchase orders using the Manage Purchasing Document Approvals task. You can find the task in the Setup and Maintenance work area, Approval Management functional area.

The override approver for the transaction is identified automatically, based on the setup for the control budget. There must be only one override approver. If the override rules return multiple override approvers, the application picks one of them randomly. In the delivered approval rule, the funds override approver is added at the last stage of the approval workflow. If your organization wants the funds override approval to happen at a different stage, they can:

  1. Disable the delivered approval rule, and,

  2. Define their own approval rule.

You can use the Manage Approvals action in the Edit Document page to see the override approver added to the approval workflow.

The actual funds override to reserve funds occurs after all approvals are secured.

Viewing the Reserved Funds in the Purchase Order

You can see whether the funds override is approved on the purchase order header.

  1. The Funds Status displays the value: Reserved.

  2. Click Reserved to open the Funds Reservation: Purchase Order dialog.

  3. The dialog displays the message, "Override was taken."

Inclusive and Exclusive Tax Information in Purchase Orders: Explained

You can view inclusive and exclusive tax information, and the nonrecoverable and recoverable components of those taxes, on your purchase orders. For you to view these tax details, the Inclusive Tax Handling in Procure to Pay Flows feature must be enabled. Related inclusive and exclusive tax setup must also be completed in the Financials offering.

Normally the price entered on a purchase order line is considered as the item price and excludes all taxes. Applicable taxes are calculated on top of the line or schedule amount.

In some countries, tax authority guidelines require transaction taxes to be calculated and tracked as part of the pricing in your transactions. When the inclusive tax handling feature is implemented and set up, the application calculates and tracks details of the taxes on purchase orders processed in Oracle Enterprise Resource Planning Cloud. You can view these tax details in elements of the purchase order header, lines, schedules and distributions.

On the purchase order header:

  • The Ordered amount includes the item costs and inclusive taxes. Click the link to open the Inclusive Tax dialog box, which displays a summary of the nonrecoverable and recoverable inclusive taxes.

  • The Total Tax amount includes the exclusive taxes. Click the link to open the Total Tax dialog box, which displays a summary of the nonrecoverable and recoverable exclusive taxes.

  • The Total amount includes the Ordered amount plus the Total Tax amount.

On the purchase order lines and schedules:

  • The Ordered and Total Tax amounts also link to the Inclusive Tax and Total Tax dialog boxes, respectively.

  • Use the View Tax Lines action to open the Tax Lines dialog, which displays details of the nonrecoverable and recoverable taxes. You can also see which taxes are marked as inclusive. Those taxes not marked as inclusive are exclusive.

On the purchase order distributions:

  • The Ordered and Total Tax amounts also link to the Inclusive Tax and Total Tax dialog boxes, respectively.

  • Use the View Tax Distributions action to open the Tax Distributions dialog, which displays details of the nonrecoverable and recoverable taxes. This dialog does not indicate which taxes are inclusive or exclusive.

You can also view this tax information in the purchase order details and change order pages.

Buyer Managed Transportation in Procurement

Buyer managed transportation functionality provides a structured way to communicate your buying organization's intent to manage the transportation for a purchasing transaction.

When buyer managed transportation is enabled in the Procurement offering, you can:

  • Indicate in a negotiation, agreement or purchase order (PO) your buying organization's preference to arrange transportation for a purchasing transaction.

  • Identify the shipping method.

  • Specify the requested ship date for goods.

  • Communicate these details to the supplier.

Negotiations

When authoring a negotiation, you can select or update the buyer managed transportation option as part of the terms. You can also include the requested ship date. The supplier promises shipment against the requested ship date, with a promised ship date, so there is no ambiguity. The supplier can also respond with a different promised ship date if they are unable to meet the requested ship date.

Agreements

You can use a blanket purchase agreement to communicate your buyer managed transportation term. When you create an agreement, the buyer managed transportation value can be populated by default. The default action is based on the existing buyer managed transportation values set up in these tasks, in the following order of precedence:

  1. The value for the supplier site. This is set with the Manage Supplier task in the Supplier work area.

  2. The value for the business unit. This is set with the Configure Procurement Business Function task, Setup and Maintenance work area, Procurement Foundation functional area.

If an agreement is created from a negotiation award, the corresponding value for the buyer managed transportation setting is copied over to the agreement.

Requisitions

You cannot create or view requisitions using buyer managed transportation attributes from the Purchase Requisitions work area. The Buyer Managed Transportation, Requested Ship Date, and Shipping Method fields are not available for you to create or view a requisition.

Oracle Procurement Cloud can accept externally managed, planning system requests specifying ship dates and shipping methods. Procurement can create requisitions from these requests, and purchase orders can be generated either automatically or manually. For requisitions requiring manual processing, you can see the following buyer managed transportation information in the Process Requisitions page:

  • Shipping method.

  • Requested ship or delivery date.

This table lists the terms used to refer to ship and delivery dates, and their descriptions:

Ship or Delivery Date Term Description

Requested ship date

For buyer managed transportation, the date the supplier is expected to have the goods ready for pickup from their site.

Promised ship date

For buyer managed transportation, the date the supplier promises to have the goods ready for pickup from their site.

Requested delivery date

For supplier managed transportation, the date by which the supplier is expected to have the goods delivered to the buyer's site.

Promised delivery date.

For supplier managed transportation, the date by which the supplier promises to deliver the goods to the buyer's site.

Purchase Orders

When you search for existing PO schedules, you can see the requested and promised ship dates in the results.

When you create a PO, the buyer managed transportation setting can be populated by default. The value is populated based on the existing values for the setting from the following tasks, in this order of precedence:

  1. The value from the source blanket purchase agreement specified on the PO, set in the Purchase Agreements work area, Manage Agreements task.

  2. The value for the supplier site, set in the Supplier work area, Manage Supplier task.

  3. The value for the business unit, as set in the Setup and Maintenance work area, Configure Procurement Business Function task. You can find the task in the Procurement offering, Procurement Foundation functional area.

If a PO is created from a negotiation award, the value for the buyer managed transportation setting is copied over to the PO.

You can see the following buyer managed transportation information in the purchase order Terms tab:

  • Buyer Managed Transportation setting

  • Shipping Method

You can see the following buyer managed transportation attributes in purchase order schedules:

  • Shipping Method

  • Requested Ship Date

  • Promised Ship Date

  • Requested Delivery Date

  • Promised Delivery Date

  • Rejection Reason

  • Anticipated Arrival Date

For documents that specify ship dates, an anticipated arrival date can be calculated and displayed. The anticipated date for the goods to arrive at the buying organization's site is calculated using the following information, if available:

  • Requested or promised ship date.

  • Specified shipping method.

  • Transit time between the two locations.

Supplier Portal

The supplier can see the buyer managed transportation information in negotiations, agreements and orders. They see it in communications such as PDF and business to business messages, and on the supplier portal. The supplier can use the supplier portal to:

  • Receive and review an order that indicates whether or not transportation arrangements are buyer managed.

  • Review the requested ship or delivery date, depending on the transportation arrangement specified.

  • Acknowledge the order and respond.

  • Provide a promised ship date if the transportation is buyer managed, or a promised delivery date if not.

Contract Manufacturing Integration in Procurement: Explained

When contract manufacturing is enabled, you can process procurement transactions for contract manufacturing service items.

Important aspects of contract manufacturing integration in procurement transactions include the following:

  • How procurement fits into the contract manufacturing flow.

  • How the request to purchasing is transmitted.

  • What contract manufacturing details are provided in requisitions.

  • What contract manufacturing details are provided in purchase orders.

Procurement Role in Contract Manufacturing

Procurement of contract manufacturing service items is supported in plan-to-produce, and back-to-back order fulfillment flows. The general flow is summarized as follows:

  1. Oracle Fusion Supply Chain Orchestration calls the Purchase Request Web Service to send a request to Oracle Procurement Cloud for a contract manufacturing service item.

  2. The Purchase Request Web Service accepts the request to create an externally managed requisition for the item.

  3. A purchase order (PO) is generated from the requisition, either automatically or manually.

  4. The PO, along with the work definition as an attachment, is communicated to the contract manufacturer (CM).

Contract Manufacturing Details in Requisitions

You cannot see the externally managed, contract manufacturing requisition in Oracle Fusion Self Service Procurement. You can see the requisition information in Oracle Fusion Purchasing, if the requisition is not automatically converted into a PO. You can search for contract manufacturing requisitions requiring manual processing on the Process Requisitions page. Product and Work Order are available for use as a search criteria. When you review contract manufacturing requisitions, in addition to the usual requisition information you can also see these details:

  • Line Type is Goods.

  • Destination Type is Inventory.

  • Organization is the contract manufacturing organization.

  • Item is the contract manufacturing service item.

  • Item Description on the requisition line includes an information icon with display-text stating, "This is a contract manufacturing transaction."

  • Information icon opens a dialog that displays the Product and Work Order information.

You can also use the View Requisition Lines page to view contract manufacturing requisition details.

Contract Manufacturing Details in Purchase Orders

In the PO general header information, you can see the following contract manufacturing details:

  • Supplier is the contract manufacturer.

  • Supplier Site is the contract manufacturer's location.

In the PO line information, you can see the following contract manufacturing details:

  • Line Type is Goods.

  • Destination Type is Inventory.

  • Item is the contract manufacturing service item.

  • Description includes an information icon with display-text stating, "This is a contract manufacturing transaction."

  • Information icon opens a dialog displaying the Product and Work Order number.

  • Organization is the contract manufacturer's production facility.

  • The work definition document is an attachment to the line.

In the PO schedule information you can see the following contract manufacturing-related details:

  • Destination Type is Inventory.

  • Work Order number.

When you communicate the PO to the supplier, it includes the contract manufacturing, product and work order information. This applies to PDF, e-mail, fax or print communication methods.

You can search for contract manufacturing-related PO's using the product and work order numbers.

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

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

When back-to-back order fulfillment is enabled, you can process procurement transactions for back-to-back items.

In back-to-back orders the supplier ships goods back to your company, for consolidation before shipping out to the customer.

Important aspects of back-to-back integration in procurement transactions include the following:

  • How procurement fits into the back-to-back order fulfillment flow.

  • How the back-to-back request to purchasing is transmitted.

  • What back-to-back order details are provided in a purchase requisition (requisition).

  • What back-to-back order details are provided in a purchase order (PO).

Procurement Role in Back-to-Back

The general flow for the procurement role in back-to-back order fulfillment is summarized as follows:

  1. The supply recommendation to meet a back-to-back sales order demand is to buy the item from a supplier.

  2. Oracle Fusion Supply Chain Orchestration calls the Purchase Request Web Service to send a request to Oracle Procurement Cloud for a back-to-back item.

  3. The Purchase Request Web Service accepts the request to create an externally managed requisition for the item.

  4. A PO is generated from the requisition, either automatically or manually.

  5. The PO is communicated to the supplier using the communication method set up for the supplier site.

Back-to-Back Details in Requisitions

You cannot see the externally managed, back-to-back requisition in Oracle Fusion Self Service Procurement. You can see the requisition information in Oracle Fusion Purchasing, if the requisition is not automatically converted into a PO. You can search for back-to-back requisitions requiring manual processing on the Process Requisitions page. Customer Sales Order and Ship-to Party are available for use as search criteria. When you review back-to-back requisitions, in addition to the usual requisition information you can also see these details:

  • Back-to-Back Order indicator is selected.

  • Ship-to Party.

  • Customer Sales Order.

  • Deliver-to Location, which is the internal location the goods are shipped to.

  • For back-to-back order lines, an information icon with display text stating, "Requested goods are to fulfill a customer sales order."

You can also use the View Requisition Lines page to view back-to-back requisition details.

Back-to-Back Details in Purchase Orders

The back-to-back requisition can be converted to a PO, either automatically or manually. You can see the following back-to-back information in the PO:

  • Back-to-Back Order indicator is selected.

  • Ship-to Party.

  • Ship-to Location

  • Customer Sales Order.

  • Deliver-to Location.

  • Information icon with display text stating, "Scheduled goods are to fulfill a customer sales order."

The Ship-to Party and Customer Sales Order information is not displayed to the supplier user.

Drop Shipment Order Fulfillment Integration in Procurement: Explained

When drop shipment order fulfillment (drop ship) is enabled, you can process procurement transactions for drop ship items.

In drop ship orders, the supplier ships goods directly to your company's customer.

Important aspects of drop ship integration in procurement transactions include the following:

  • How procurement fits into the drop ship order fulfillment flow.

  • How the drop ship request to purchasing is transmitted.

  • What drop ship order details are provided in a purchase requisition (requisition).

  • What drop ship order details are provided in a purchase order (PO).

Procurement Role in Drop Ship

The general flow for the procurement role in drop ship order fulfillment is summarized as follows:

  1. The supply recommendation to meet a drop ship sales order is to purchase the item from a supplier.

  2. Oracle Fusion Distributed Order Orchestration calls the Purchase Request Web Service to send a request to Oracle Procurement Cloud for a drop ship customer item.

  3. The Purchase Request Web Service accepts the request to create an externally managed requisition for the item.

  4. A PO is generated from the requisition, either automatically or manually.

  5. The PO is communicated to the supplier using the communication method set up for the supplier site.

Drop Ship Details in Requisitions

You cannot see the externally managed, drop ship requisition information in Oracle Fusion Self Service Procurement. You can see the information in Oracle Fusion Purchasing, if the requisition is not automatically converted into a PO.

You can search for drop ship requisitions requiring manual processing on the Process Requisitions page. Customer Sales Order and Ship-to Party are available for use as search criteria on the Process Requisitions and View Requisition Lines pages. Use the Advanced Search function to add the fields to the search. When you review drop ship requisitions, in addition to the usual requisition information you can also see these details:

  • Information icon for the requisition line, with display text stating, "Requested goods are to be shipped to a third party." The display text is a link, click it to open the Customer Sales Order dialog.

  • Item.

  • Ship-to Party.

  • Ship-to Location, which displays the customer location from the sales order.

  • Deliver-to Location, which displays the customer location or other external delivery location from the sales order.

  • Information icon for the locations, with display text indicating the location is a third-party location.

  • Customer Sales Order number is displayed as a link. Click it to open a dialog displaying these customer sales order and customer purchase order details:

    • Customer Sales Order Line.

    • Customer Sales Order Schedule.

    • Customer Purchase Order.

    • Customer Purchase Order Line.

    • Customer Purchase Order Schedule.

    • Customer Item.

    • Customer Item Description.

    • Ship-to Party name, Address and Contact.

    • Deliver-to Party name, Address, and Contact if different from the ship-to party.

  • Destination type is Drop Ship, to distinguish the request from an inventory replenishment request.

Note: Do not manually split requisition lines for externally managed requisitions such as for drop shipments.
Drop Ship Details in Purchase Orders

The drop ship requisition can be converted to a PO, either automatically or manually. You can search for the PO by Customer Sales Order number and Ship-to Party. On the Manage Orders page, Schedules tab, use the Advanced Search function to add the fields to the search. Similar to the requisition, you can see the following drop ship information in the PO:

  • Information icon for the PO schedule, with display text stating, "Scheduled goods are to be shipped to a third party." The display text is a link. Click it to open the Customer Sales Order dialog.

  • Item is the customer item.

  • Ship-to Party.

  • Ship-to Location, which displays the customer location from the sales order.

  • Deliver-to Location, which displays the customer location or other external location from the sales order.

  • Location names are displayed as a link. Click it to open a dialog displaying the Ship-to Party name, Address and Contact information. The Deliver-to Party name, Address and Contact information is also displayed, if different from the ship-to party.

  • Information icons for the locations, displaying text indicating the location is a third-party location.

  • Customer Sales Order number is displayed as a link. Click it to open the Customer Sales Order dialog. Information displayed in the dialog is the same information as for the requisition.

  • Destination type is Drop Ship, to distinguish the order from an inventory replenishment order.

Configured Item Order Fulfillment Integration in Procurement: Explained

When configured item order fulfillment is enabled, you can process procurement transactions for configured items.

Important aspects of configured item integration in procurement transactions include the following:

  • How procurement fits into the configured item order fulfillment flow.

  • How the configured item request to purchasing is transmitted.

  • What configured item order details are provided in a purchase requisition (requisition).

  • What configured item order details are provided in a purchase order (PO).

Procurement Role in Configured Item Orders

Configured products may be procured or made to order, and may result in back-to-back or drop ship purchase orders. The key difference is in the processing of a configured product. The general flow for the procurement role in configured item order fulfillment (CTO) is summarized as follows:

  1. The supply chain or order orchestration recommendation to meet a supply or sales order is to purchase the item from a supplier.

  2. The supply chain or order orchestration application calls the Purchase Request Web Service (PRWS) to send a request to Oracle Procurement Cloud.

  3. The Purchase Request Web Service accepts the request to create an externally managed requisition for the item.

  4. A PO is generated from the requisition, either automatically or manually.

  5. The PO is communicated to the supplier using the communication method set up for the supplier site.

Configured Item Order Details in Requisitions

Create a blanket purchase agreement (BPA) for orders of a configured item using a CTO-specific document style. You can use the BPA to manage and maintain price lists for the base model and options for the configured item. The pricing information for base model and options can also come from the PRWS request. When a requisition is created for a configured item, the price of the configuration is determined from the pricing for the base model and options.

You cannot see the externally managed, configured item requisition in Oracle Fusion Self Service Procurement. You can see the requisition information in Oracle Fusion Purchasing, if the requisition is not automatically converted to a PO. Search for configured item requisitions requiring manual processing on the Process Requisitions page. When you review configured item requisitions, in addition to the usual requisition information you can also see these details:

  • Customer Sales Order, which is the supply or sales order number.

  • Configured Item name and description.

  • Base Model and Option item name and description.

  • Base Model, Option and Configuration item pricing.

You can also use the View Requisition Lines page to view configured item requisition details.

Configured Item Order Details in Purchase Orders

A configured item requisition can be converted to a PO, either automatically or manually. A purchase order for a configured item order must be created from a requisition.

You can search for an existing PO by the Base Model number. Use the Advanced Search on the Manage Orders page, Schedules tab. From the Search Results, use the View Configuration icon next to the Line Description to open the Configuration page. From there you can view the configuration details, such as:

  • Configuration Item, Description and Configuration Price.

  • Base Model and Base Model Price.

  • Selected Options Price.

  • For selected options, the Option Item, Description including options and option classes, and Price.

You can see the following configured item information in the PO line:

  • Configured Item and Description.

  • View Configuration icon, next to the Description, which you can use to view the Configuration page.

  • Selected option Item, Description including option class, and Price.

You can see the following configured item-related information in the PO schedule:

  • Customer Sales Order, which is the supply or sales order number.

Purchase Orders for Outside Processing in Procurement

As a buyer or procurement manager, you can manage purchase orders to support the handling of outside processing items.

Important aspects for understanding and working with purchase orders for outside processing include the following:

  • How procurement fits into the outside processing flow.

  • Prerequisite setup needed for the automated flow in procurement.

  • How to search for an outside processing purchase order.

  • Outside processing attributes visible on a purchase order.

  • How you can manage an outside processing purchase order.

Procurement Role in Outside Processing

Oracle Procurement Cloud integrates with Oracle Supply Chain Management Cloud, to support the automatic creation of requisitions and purchase orders for outside processing items. When there is work order demand for supplier operations for outside processing services, the general flow is:

  1. Oracle Fusion Supply Chain Orchestration calls the Purchase Request web service, to send a request to Oracle Procurement Cloud for an outside processing item.

  2. The web service accepts the request to create an externally managed requisition for the item.

  3. Based on a blanket purchase agreement for the outside processing item, a purchase order is generated from the requisition, either automatically or manually.

Prerequisite Setup

Use setup tasks in the Setup and Maintenance work area to support the automatic creation and approval of purchase orders for outside processing items:

  • Create the supplier record for providers of outside processing services. Use the Create Supplier task in the Suppliers work area.

  • Define account derivation rules. Use the Manage Mapping Sets task.

  • Set up document approval rules. Use the Manage Purchasing Document Approvals task in the Approval Management functional area.

  • Use either the delivered document style for outside processing purchasing documents, or create one. Use the Manage Document Styles task in the Procurement Foundation functional area.

  • Create purchase agreements for outside processing items. From the Navigator, access the Purchase Agreements work area, Create Agreements task.

Search for an Outside Processing Purchase Order

You can search for outside processing purchase orders using the Purchase Order work area, Manage Orders task.

On the Manage Orders page, on the Headers tab, use the advanced search function to add the Document Style as a search field. Select one of the delivered or created outside processing document styles to narrow your search.

On the Schedules tab, you can also use the advanced search to add the Document Style, Work Order number or Destination Type as search fields. For outside processing transactions the destination type is Work Order.

On the Schedules tab, in the search results, the Description column for an outside processing item displays an Information icon. The display text for the icon states, "This is an outside processing transaction". Click the icon to view the Manufacturing Details dialog, which displays the Product, Work Order, and Operation Sequence.

Outside Processing Details on a Purchase Order

When viewing an order, the text on the page tab and title includes the name of the outside processing document style. For example: Outside Processing Purchase Order 1003608.

You can see these outside processing attributes throughout the purchase order life cycle, when managing purchase order and change order lines and schedules:

  • Destination Type is Work Order.

  • Item is the outside processing item.

  • Item Description on the purchase order line includes an Information icon. Display text for the icon states, "This is an outside processing transaction". Click the icon to view the Manufacturing Details dialog, which displays the Product, Work Order, and Operation Sequence.

Outside processing attributes are also communicated on the purchase order and change order document PDF. As a buyer using the Purchase Orders work area, or as a supplier using the Supplier Portal, you can see the following:

  • The name of the outside processing document style is included in the document title.

  • On outside processing lines text is displayed stating, "Attention: This is an outside processing transaction."

Manage an Outside Processing Purchase Order

Managing an outside processing purchase order is similar to managing any other type of purchase order. However, as a buyer you cannot:

  • Duplicate purchase orders or purchase order lines with an outside processing item.

  • Add an outside processing item to a purchase order that does not have the outside processing document style applied.

  • Manually add an outside processing item to a draft purchase order.

  • Create a purchase order for an outside processing item using the Purchase Order import template, or the Purchase Order web service.

Supplier Managed Purchasing Documents for Outside Processing

As a supplier user you can manage purchasing documents to support your handling of outside processing items.

To manage purchasing documents for outside processing you must understand the following:

  • What is an outside processing purchasing document?

  • How can you search for an outside processing purchase agreement?

  • What outside processing attributes are visible on an outside processing purchase agreement?

  • How can you search for an outside processing purchase order?

  • What outside processing attributes are visible on an outside processing purchase order?

  • How you can manage an outside processing purchasing document?

Outside Processing Purchasing Documents

An outside processing purchase order is created based on manufacturing work order demand for an outside processing service your organization provides. A purchase order for the outside processing item is generated based on the details in an outside processing purchase agreement.

You search for and manage outside processing purchase agreements and purchase orders in the Suppler Portal work area. Use the Manage Agreements and Manage Orders tasks.

Search for an Outside Processing Purchase Agreement

On the Manage Agreements page, Headers tab, you can view the Document Style column in the search results. Look for agreements with an outside processing document style. For example, Outside Processing Blanket Purchase Agreement.

You can also use the advanced search function to narrow your search results to see only outside processing agreements. Add the Document Style field as a search field, and search for a particular outside processing document style.

Outside Processing Details on a Purchase Agreement

When you open an outside processing purchase agreement, the document style displays in the page name. For example, Outside Processing Blanket Agreement 123456. The document style also displays in the agreement name on the PDF version of the agreement.

Search for an Outside Processing Purchase Order

On the Manage Orders page, on the Headers tab, use the advanced search function to narrow your search results to see only outside processing orders. Add the Document Style as a search field, and search for a particular outside processing document style.

On the Schedules tab, you can also use the advanced search to add the Document Style or Work Order number as search fields.

On the Schedules tab, in the search results, the Description column for an outside processing item displays an Information icon. The display text for the icon states, "This is an outside processing transaction". Click the icon to view the Manufacturing Details dialog, which displays the Product, Work Order, and Operation Sequence.

Outside Processing Details on a Purchase Order

When viewing an order, the text on the page tab and title includes the name of the outside processing document style. For example: Outside Processing Purchase Order 1003608.

You can see these outside processing attributes when managing purchase order and change order lines and schedules:

  • Destination Type is Work Order.

  • Item is the outside processing item.

  • Item Description on the purchase order line includes an Information icon. Display text for the icon states, "This is an outside processing transaction". Click the icon to view the Manufacturing Details dialog, which displays the Product, Work Order, and Operation Sequence.

Outside processing attributes are also communicated on the purchase order and change order document PDF. You can see the following:

  • The name of the outside processing document style is included in the document title.

  • On outside processing lines text is displayed stating, "Attention: This is an outside processing transaction."

Manage an Outside Processing Purchasing Document

Managing an outside processing purchasing document is similar to managing any other type of purchasing document. As a supplier, you can:

  • Acknowledge purchase agreements and purchase orders for outside processing items.

  • Split purchase order schedules for outside processing items, and request different requested or ship dates.

You can also use the Supplier Portal work area to support consecutive outside processing operations. These are operations where your organization performs an outside processing service, and ships the partially finished item to another supplier for subsequent processing. Use the Create ASN task to enter an advanced shipment notice for an outside processing item. The shipment notice can be processed in Oracle Fusion Receiving.

FAQs for Create Purchase Order Online

Some document fields are filled in automatically when you first create a purchase order. A comprehensive defaulting mechanism provides most required purchase order information and minimizes document creation time. In most cases, but not all, you can change the defaulted information

The document layout determines the appearance of the document when viewed or communicated to the supplier. For purchasing documents other than requisitions, you can select the appropriate layout for a document type. These layout templates determine what information is displayed along with providing the headers, footers, text style, and pagination of the printed document. You also select a contract terms layout if procurement contracts is deployed.

Standard layouts are provided with the application but you can create your own layouts. You usually define these during application implementation.

You can add lines to an order from existing blanket purchase agreements using the Add from Catalog action.

What's a consignment order?

A consignment order is created when you use the terms and conditions of a consignment agreement and specify the delivery details, quantities, locations and dates for the consigned goods to be delivered.

How can I create a purchase order for consignment inventory items?

You begin by creating a purchase order with a document style for a consignment order.

  • Choose your consignment supplier and add the consignment items for this order.

  • Verify that the items were sourced by a consignment agreement and that Consignment Line is checked on the line.

  • Submit the order for approval.

What's a financial route?

The route in which financial transactions belonging to a financial orchestration flow are settled. This can be different from the physical route and involve one or more intermediary nodes forming part of the route. The intermediary nodes are internal organizations that are not part of the physical supply chain transaction but are part of the financial route.

What's a legal entity's role in global procurement?

You model your legal entities in Oracle Fusion Applications. If you make purchases from or sell to other legal entities, you must define these other legal entities. You then use legal entity relationships to determine which transactions are intercompany and require intercompany accounting.

Import Purchase Orders

Import Purchasing Documents

You can import purchasing documents from external applications into Oracle Fusion Purchasing.

How to Import Purchasing Documents

Run the purchasing document import tasks from the Purchase Agreements or Purchase Orders work areas to import purchasing documents. Use the following purchasing tasks to import purchasing documents:

  • Import Orders

  • Import Blanket Agreements

  • Import Contract Agreements

Run the import process to import purchase orders, blanket agreements, or contract agreements into the application for further processing.

You can query, modify and validate successfully imported documents. During import, records that have insufficient or invalid data are rejected. You can use an automatically produced report to review the documents that could not be imported. You can resubmit the import task after making corrections to rejected documents.

Import Extended Item Attributes and Translations into Blanket Agreements

You can import rich catalog content data such as thumbnail images, image URLs, manufacturer availability and lead time information, and other extended item attributes into blanket agreements using file-based data import. You can also import extended item attribute translations such as Description, Manufacturer, Comments and so on. Use the PO_ATTR_VALUES_INTERFACE and PO_ATTR_VALUES_TLP_INTERFACE sheets to specify these attributes in your import file. You can get complete details on the data supported by the import templates in the File-Based Data Import for Oracle Procurement Cloud guide on the Oracle Help Center.

Prerequisite

Before you can run the import process, you must first have loaded the relevant information into the appropriate interface tables.

Note: You can load data to interface tables using predefined templates and the Load Interface File for Import scheduled process. Both are part of the External Data Integration Services for Oracle Cloud. For other implementations, optionally use this feature only if you have SFTP configured for it.

For more information refer to the File-Based Data Import for Oracle Procurement Cloud guide on the Oracle Help Center.

Limitations

File-based data import does not support the creation or update of purchasing documents with more than 10,000 lines. Exceeding 10,000 lines can cause performance issues and could lead to failures.

Import Process

To run the process to import purchase orders, blanket agreements, or contract agreements into the application, follow these steps:

  1. From the Purchase Agreements or Purchase Orders work area, open the appropriate task you want to use:

    • Import Orders

    • Import Blanket Agreements

    • Import Contract Agreements

  2. Depending on the purchase document import task you are using, you can set one or more selection parameters before running the process. The following table lists some of the possible selection parameters and their descriptions.

    Parameter Description

    Procurement BU

    Specify the name of the Procurement business unit that these documents should be imported into.

    Default Buyer

    Specify the name of the buyer to be used when one is not included in the import data.

    Create or Update Item

    Select "Yes" to create an item that does not exist or update an existing item.

    Approval Action

    Select one of the following actions:

    • Do Not Approve: Imports the document in Incomplete status requiring manual interaction.

    • Submit for Approval: Imports the document and submits it to the approval process after the document is imported.

    • Bypass Approval: Imports the document in Open (approved) status without going through the approval process.

    Batch ID

    Enter the value for your import data from the file-based data import template, to select the interface table data to be processed in the current run. For example: Batch ID = 123. Use it in conjunction with Import Source to identify the documents to be loaded to the application tables.

    Import Source

    Enter the value for your import data from the file-based data import template, to select the interface table data to be processed in the current run. For example: Import Source = External Contracts. Use it in conjunction with Batch ID to identify the documents to be loaded to the application tables.

    Default Requisitioning BU

    Specify the name of the Requisitioning business unit to be used when one is not included in the import data.

    Communicate Orders, or Communicate Agreements

    Select Yes to have imported purchasing documents communicated to the supplier.

    Select No to not have imported purchasing documents communicated to the supplier.

  3. When the processes are complete, view the output report in PDF format. The report details the status of the records that were imported. If a record could not be imported, then the Status is set to Rejected with a reason for the rejection.

  4. Fix the problems that are identified in the report and then resubmit the import task.

Viewing the Import Process Results

The results for each import process are compiled in a PDF output report which you can view online or print. The validation error details are accessible from the Purchasing Document Import Errors report. To see the report click the Output icon in the Scheduled Processes region of the import page.

Automated Order Buying For Items From The Open Interface : How It Works

For the application to automatically create orders for items imported through the open interface some prerequisites are required.

Settings for Automated Ordering of Items Imported Through the Open Interface

The setup to enable automated order buying for items imported through the open interface depends on the procurement strategy of the organization. This falls into two scenarios:

  1. Item has a primary source for all inventory organizations within a requisitioning BU.

    The item has a primary supplier across all inventory organizations within a requisitioning BU being serviced by the procurement BU. For this scenario it is sufficient to have an agreement in place with the requisitioning BU added to the list of business units in the Business Unit Access table of the agreement and enable the order creation controls on this agreement to automatically process requisitions sourced to this agreement into purchase orders.

    When requisitions are created for this item from any inventory organization of these requisitioning BUs, the application will find the agreement and determine the supplier, terms and conditions, and pricing information needed to create the purchase order.

  2. Item has a primary source specific to an inventory organization.

    This scenario addresses a more complex procurement strategy wherein the item has a local supplier when purchased from an inventory organization. For this scenario, the following setups need to be performed:

    • Create an agreement with the supplier and enable the order creation controls on the agreement.

    • Create a local approved supplier list (ASL) entry for this item when it is purchased from the inventory organization. The Generate Approved Supplier List Entries process is available to quickly create ASL entries for the items on the agreement.

    When requisitions are created for this item from this inventory organization, the application will find the local ASL entry for this item-supplier combination, and then find the agreement listed on the ASL entry, and determine the supplier, terms and conditions, and pricing information need to create the purchase order.

For both scenarios, in case multiple agreements are found, the application prioritizes agreements in the following order:

  • Blanket purchase agreements over contract purchase agreements

  • Agreements that are owned locally by the requisitioning BU

  • Agreements which have the Automatically generate orders indicator checked

From this list it picks the agreement with the most recent agreement date.

Automated Order Buying For Catalog Items : How It Works

For the application to automatically create orders for catalog items some prerequisites are required.

Settings for Automated Order Buying

To enable automated order buying for catalog items which are to be associated with agreements (items on agreements, punch-out catalog items, items on smart forms), the following setup is required:

  • Create an agreement with the supplier with the terms, conditions and pricing.

  • Enable purchase order creation controls on the agreement to drive the automation process.

The procurement agent can configure the degree of intervention in the automated process using the agreement order creation controls:

  • To automatically generate purchase orders for all requisition lines sourced to this agreement, enable the Automatically generate orders indicator.

  • To submit these automatically generated purchase orders for approval, enable the Automatically submit for approval indicator.

The agreement also provides grouping controls for requisition lines which are sourced to this agreement:

  • If you want to group requisition lines across different requisitions into the same purchase order, enable the Group requisitions indicator.

  • In order to group requisition lines into the same purchase order line, enable the Group requisition lines indicator. The requested delivery date and ship-to organization and location can optionally be used to group requisition lines.

Approve Purchase Order

Document approval electronically routes the purchasing document to all identified approvers and records their approval actions.

Oracle Fusion Purchasing leverages the Oracle Approval Management Service for purchasing document approvals. Approval Management Service is a robust engine that enables administrators to organize and author approval routing rules based on numerous seeded document attributes such as ordered amount, price, category, and contract terms exist. Based on your unique business requirements, administrators can choose to send the approval request to approvers in parallel or in a sequence. Approvals can be sought using supervisory chain, position or job level hierarchy, or using a list of approvers.

This table lists several approval routing rules examples. For each example an approval rule condition and corresponding action are provided.

Condition Action

Purchase order amount exceeds a certain threshold

Route to procurement agent's manager

Purchase order amount is greater than backing requisition amount

Route to requester's manager

Line price change percent on a blanket agreement exceeds the Price Update Tolerance Percent

Route for category manager approval

Non-standard contract terms

Route for legal approval

Line category name is "Travel"

Route for travel approval

Configure Bypass Approval Processing for Automatically Generated Purchase Orders

As a procurement application administrator, you can configure a procurement business unit to support bypass of approvals for automated requisition to purchase order creation flows. When configured, the application bypasses approval processing of purchase orders that are generated and submitted automatically to fulfill requisitions for previously negotiated goods and services.

Follow these steps to configure the procurement business function for a business unit, to support bypass of approvals for automated requisition to purchase order flows.

  1. In the Setup and Maintenance work area, access the Configure Procurement Business Function task in the Procurement Foundation functional area.

  2. Specify the procurement business unit.

  3. On the Configure Procurement Business Function page, in the Purchasing section, select the Bypass approvals for automatically submitted orders check box.

  4. Click Save.

This configuration eliminates redundant approval processing for approved requisitions from negotiated sources. Requisition lines being fulfilled by a purchase order must have the Negotiated option selected. Approval processing is bypassed for the following flows where a purchase order is automatically generated and submitted from:

  • A requisition line from an external application, using the Purchase Request web service.

  • A requisition line imported using file-based data import.

  • A requisition referencing a blanket purchase agreement where the agreement controls Automatically generate orders, and Automatically submit for approval are selected.

  • A requisition referencing a contract agreement where the agreement controls Automatically generate orders, and Automatically submit for approval are selected.

  • A requisition line from a punchout catalog, having the All Prices are Negotiated option selected.

  • A requisition line from a Smart Form with the Negotiated option selected.

  • A requisition line for a noncatalog item having the Negotiated option selected.

Emergency requisition lines and requisition lines charged to procurement cards can also be automatically processed into Purchase Orders. If such lines are not marked as Negotiated, they are still subject to approvals processing.

The ability to bypass approvals does not apply to purchase orders generated from sourcing awards even if they are automatically submitted for approval.

The Submit and Bypass Approval action is recorded on the Document History page, along with the value for the buyer name.

Bypass Approvals for Automatically Submitted Purchase Orders: Explained

As a buyer, you can manage automatically generated purchase orders that have bypassed approval processing.

Your administrator can configure the application to support bypass approvals processing for purchase orders that are generated and submitted automatically. The configuration affects purchase orders generated to fulfill requisitions for previously negotiated goods and services. The administrator configures the feature for a procurement business unit, using the Configure Procurement Business Function task in the Setup and Maintenance work area.

When the feature is enabled, the application eliminates redundant approval processing for approved requisitions from negotiated sources. Requisition lines fulfilled by automatically generated purchase orders must have the Negotiated option selected. In this context, negotiated means the price, terms and conditions for the ordered items or services have already been negotiated with the supplier.

To be subject to bypass approval processing, a purchase order must be both created and submitted automatically. When the purchase order bypasses approvals, document history records the action and the person who performs the action. You can view the submit and bypass approval action on the order's Document History page. You can view and manage the open purchase order using the Manage Orders task in the Purchase Orders or Purchase Agreements work areas.

Approve a Funds Override for a Requisition or Purchase Order: Explained

As a procurement user who is a funds override approver, you are sent notifications to approve requests for insufficient funds override. Depending on your organization's approval policies, you may receive notifications for purchase requisitions or purchase orders.

Key factors affecting how you receive and act on funds override approval notifications are:

  • How you are selected to approve a funds override request.

  • How you check for a notification to approve a funds override.

  • How you take action to approve or reject a funds override.

How You are Selected to Act on a Request

A requester or buyer can submit for approval a transaction that is subject to budgetary control, and has failed funds check due to insufficient funds. While doing so, they submit a request for an insufficient funds override.

A transaction requiring insufficient funds override approval is automatically routed to you when:

  • Funds override is enabled for the control budget for the transaction.

  • The override limit for the control budget has not been exhausted.

  • You are identified as a funds override approver for the control budget.

  • The required override amount for each distribution is equal to or less than your funds override approval limit.

How You Check for a Notification

You can see the notification from your Oracle Cloud Applications home page.

  1. In the global header area, click the Notifications icon.

  2. In the Pending Notifications dialog, you can see the notification title in a list of your notifications.

    • For example, Action Required: Approve Purchase Order 123.

    • You can also see the requester's name on the notification row.

How You Take Action on a Request

If you need no additional information to act on the insufficient funds override request, you can take action directly on the Pending Notification dialog. Click either the Reject or Approve button associated with the notification line.

If you need additional information before you act on the funds override request, click the notification title link. On the approval dialog that opens, you can see information such as:

  • A warning message stating, "This document failed funds check. A funds override is requested."

  • Instruction text stating, "Enter any reasons for rejection, questions, or approval notes in the comments region."

  • A section displaying the notification details, such as: The requester or buyer name, the transaction amount, and the justification for the insufficient funds override request.

  • Additional sections with the transaction details, including funds status.

To act on the insufficient funds override request from the approval dialog, you can click either the Approve or Reject button.

Once all approvals for a transaction are secured, including your funds override approval, the funds are reserved for the transaction.

FAQs for Approve Purchase Order

How can I insert additional approvers and viewers?

As a procurement agent or a requester, you can view the application generated list of approvers using the Manage Approvals page. You can add approvers and viewers on this page based on approval configuration.

How can I view the approval actions performed on a document?

Select your purchasing document in the application and use the View Document History action to view all approval actions performed on the document.

How can I route a purchase order for approval to a project manager's reporting hierarchy?

As a procurement application administrator, you can set up an approval rule for a purchase order based on a project manager or their reporting hierarchy. This way, when procuring goods or services for projects, you can enforce approval policy and effectively manage project orders.

Use the project manager attribute to set up an approval rule action to route the approval notification. You can set up the rule to route using a single approver, job level, or supervisory hierarchy. To do this, use the Manage Purchasing Document Approvals task. Find the task in the Setup and Maintenance work area, Procurement offering, Approval Management functional area. For more details refer to the following white paper on My Oracle Support: Setting Up Document Approvals in Oracle Fusion Procurement (Document ID 2120227.1).

How can I route a purchasing document for approval based on the requester's supervisory hierarchy?

As a procurement application administrator, you can set up an approval rule condition for a purchasing document based on the requester's supervisory hierarchy. This way, when procuring goods or services, you can enforce different approval policies for different organizations.

You can use the name or user name of the top ten supervisors on the requester's supervisory hierarchy. Use this attribute to set up an approval rule condition, where the top-level supervisor's name identifies the organization. To do this, use the Manage Purchasing Document Approvals task. Find the task in the Setup and Maintenance work area, Procurement offering, Approval Management functional area. For more details refer to the following white paper on My Oracle Support: Setting Up Document Approvals in Oracle Fusion Procurement (Document ID 2120227.1).

How can I bypass approvals when importing purchasing documents using file-based data import?

You can submit and bypass approvals when importing blanket purchase agreements, contract agreements and purchase orders using file-based data import. On the import templates, apply the Bypass Approval action in the Approval Action column.

You must have the Import Purchasing Document Bypassing Approval privilege. The privilege is not included with any predefined roles. Your administrator can grant the privilege as needed, to individual users such as buyers or other procurement agents.

For more information about the import templates, see the File-Based Import for Oracle Procurement Cloud guide on the Oracle Help Center.

How can I bypass approvals when creating purchase orders using the Purchase Order web service?

You can submit and bypass approvals when creating purchase orders using the Purchase Order web service. Use the Approval Action attribute in the service.

You must have the Import Purchasing Document Bypassing Approval privilege. The privilege is not included with any predefined roles. Your administrator can grant the privilege to individual users as needed.

For more information about the Purchase Order web service, see the SOAP Web Services for Oracle Procurement Cloud guide on the Oracle Help Center.

Evaluate Purchase Order Approval Status

Purchase Order Approval: How It Is Processed

Document approval electronically routes the purchase order to all identified approvers and records their approval actions. It determines the routing using a rules engine which is configured to accommodate your organization's unique business requirements. Approvers can then review the document details, add comments, and add attachments before approving, rejecting, or routing the document to additional approvers.

This figure shows a simplified document approval flow you might take as a document approver:

  1. Review the approval request details and action history. You can also add approvers and comments, if needed.

  2. Request additional information, if needed.

  3. Determine the approval action to take. You can approve, reject or reassign the approval request.

Based on your approval action, the approval outcome for the purchase order can be to:

  • Continue through the approval process to other approvers.

  • Return a rejected approval request to the initiator.

  • Return the approval request to review by reassignment to another approver.

Once approved by all approvers, the document can be dispatched by communication to the supplier.

Simplified purchase order approval flow, where the document
is reviewed and is then either approved, reassigned, or rejected.
Settings That Affect Purchase Order Approval

You perform setup for purchase order approval in the Setup and Maintenance work area, Procurement offering, Approval Management functional area. Use the Manage Purchasing Document Approvals task.

How Purchase Order Approval Is Processed

Using the rules engine, the original purchase order or change order is routed to appropriate approvers for their approval.

Routing rules can be based on multiple document attributes, including:

  • Header: Document Type, Creation Method, Contract Attributes, Amount

  • Line: Category, Amount

  • Schedule: Requested Delivery Date, Ship-to Organization, Destination Type, Amount

  • Distribution: Requester, Project, Cost Center, Amount

  • Backing Requisition: Requester, Difference from Requisition Amount

The rules engine enables you freedom of choice over how approval takes place:

  • Multiple Stages: Category, Terms, Requisitions, Accounts and Projects

    Approval stages are used to create rules based on the different sets of document attributes. In addition, stages help you organize the approval rules. For example, all rules pertaining to commercial or legal terms can be authored in the terms stage.

  • Voting Regimes

    If approvals are sought in parallel these are used to determine if all, only a specified percentage, or only the first of the approvers need to approve. However, only First Responder Wins is currently supported.

  • Approval Groups

    Set of approvers to whom the approval request needs to be sent. For example, a group of category managers approving all or specific category purchases.

  • Participant Types

    There are four participant types: Serial, Parallel, Single, and FYI.

This table provides several examples of approval routing rules based on a condition and action.

Condition Action

Purchase order amount exceeds a certain threshold

Route to procurement agent's manager

Purchase order amount is greater than backing requisition amount

Route to requester's manager

Non-standard contract terms

Route for legal approval

Line's category name is "Travel"

Route for travel approval

How can I find the approver with whom the document or an active change order is pending for approval?

Select your purchasing document in the application and use the Status link to open the Action Details page. This page displays all approvers who performed an action, current approvers, and future approvers.

Acknowledge Purchase Order

Manage Purchasing Documents Requiring Supplier Acknowledgment: Explained

As a procurement agent, such as a buyer or category manager, you can manage purchasing documents requiring supplier acknowledgment. This includes purchase agreements, purchase orders and their change orders.

Important aspects of managing supplier acknowledgment of purchasing documents include:

  • Setup to require supplier acknowledgment.

  • Approval and acknowledgment actions.

  • Supplier acknowledgment actions.

  • Cancellation actions.

Setup to Require Acknowledgment

You can set up purchasing documents to require supplier acknowledgment and specify the acknowledgment method by which the acknowledgment is required. To do this, use the Required Acknowledgment and Acknowledge Within Days fields. These acknowledgment control fields are on the view and edit pages for the:

  • Suppler site

  • Purchase agreement

  • Purchase order

In the Suppliers work area, enter values for the acknowledgment control fields on the Edit Site page, Purchasing tab, in the controls section. The application uses the values you enter on the supplier site definition as defaults, when you create purchase orders using the supplier site. The defaults are used in all order creation modes:

  • File-based uploads

  • Web services

  • Automated requisition to purchase order flows

  • Manual order entry using the Create Order or Process Requisition tasks

Use the acknowledgment control fields on a purchase agreement or purchase order to manually specify the acknowledgment requirements for the document. In the Purchase Agreement and Purchase Order work areas, set the acknowledgment control fields on the Edit Document pages, on the Terms tab.

Depending on the purchasing document type, the available acknowledgment method options for the Required Acknowledgment field are:

  • Document

  • Document and Schedule (purchase orders only)

  • Document and Line (purchase agreements only)

  • None

Approval and Acknowledgment Actions

When you submit a purchasing document for approval, the document status changes to Pending Approval. At this point, the document can be:

  • Rejected by an approver.

  • Withdrawn by the buyer or category manager.

  • Approved by all approvers and dispatched to the supplier.

If the approved document is set up to require supplier acknowledgment, the application automatically sends a notification to the supplier contact requesting an acknowledgment response. The document status changes from Pending Approval to Pending Supplier Acknowledgment. You can monitor purchasing documents and change orders awaiting acknowledgment using the Purchase Agreements and Purchase Orders work areas. You can use the following methods to see acknowledgment requests past their due date:

  • As Watchlist items.

  • In the Attention Required infolet on the work area overview pages.

If you withdraw a document currently pending supplier acknowledgment and make edits to it, the application captures the changes in a change order. This allows you, any reviewers and approvers, and the supplier to see the changes made to the initial document.

The following figure illustrates the status changes a purchasing document can pass through. The status of a document can flow from Incomplete to Pending Approval, to Pending Supplier Acknowledgment, to Open. At times during this cycle, a document can also be in Rejected, Withdrawn or Pending Change Approval status.

Purchasing document status flow chart.
Approval of Supplier Proposed Changes

If a supplier proposes changes to a purchasing document requiring acknowledgment, you can either:

  • Approve the change order. The application merges the change order into the base document and opens the document for fulfillment.

  • Reject the changes. The application sets the base document status to Pending Supplier Acknowledgment.

Cancellation Actions

If you decide to cancel a purchasing document, any change orders associated with the document are also canceled.

As a supplier, your formal acknowledgment may be required before a purchasing document becomes legally binding and can be implemented.

You can use the Supplier Portal work area to view purchasing documents and change orders awaiting acknowledgment, and record your response. New acknowledgment requests also show up as Worklist items on the portal, and in email notifications. To record an acknowledgment, use the Acknowledge action on the document.

A buyer for the buying organization can use the Purchase Agreements and Purchase Orders work areas to monitor purchasing documents awaiting acknowledgment. Acknowledgment requests past their due date are presented as Watchlist items. Overdue acknowledgment requests also appear in the Requiring Attention infolet on the work area Overview pages. A buyer can record a supplier's offline acknowledgment on the supplier's behalf, using the Acknowledge action on the document.

Supplier Acknowledgment of Purchasing Documents: Explained

As a supplier user, you can acknowledge and respond to purchasing documents using the Supplier Portal work area. This includes purchase agreements and purchase orders, and their change orders.

Important aspects of acknowledging and responding to purchasing documents include:

  • Finding purchasing documents requiring acknowledgment.

  • Acknowledging purchase agreements and their change orders.

  • Acknowledging purchase orders and their change orders.

Find Purchasing Documents Requiring Acknowledgment

When a purchasing document requires your acknowledgment, you receive the following types of notifications:

  • Watchlist, which you can view in the Supplier Portal work area.

  • Email, which you can view in your email account.

You can use the Manage Agreements or Manage Orders tasks to search for purchasing documents having the status Pending Supplier Acknowledgment.

Acknowledge Purchase Agreements

When a purchase agreement or its change order is submitted for acknowledgment, you can respond using the Supplier Portal work area. Use the Acknowledge Document page to perform these acknowledgment actions:

  • Accept the agreement. The application moves the agreement to Open status, ready for implementation.

  • Partially accept an agreement requiring acknowledgment at the document and line level. You can accept some lines, reject the remaining lines, and accept the document at the header level. The application puts the document in Open status, ready for implementation with the accepted lines. Rejected lines are canceled.

  • Reject the agreement. The application moves the purchase agreement to Rejected status.

Acknowledge Purchase Orders

When a purchase order or its change order is submitted for acknowledgment, you can respond using the Supplier Portal work area. Use the Acknowledge Document page to perform these acknowledgment actions:

  • Accept the order. The application moves the order to Open status, ready for implementation.

  • Partially accept an order requiring acknowledgment at the document and schedule level. You can accept some schedules, reject the remaining schedules, and accept the document at the header level. The application puts the document in Open status, ready for implementation with the accepted schedules. Rejected schedules are canceled.

  • Reject the order. The application moves the order to Rejected status.

During acknowledgment you can also propose changes to the order. You can do this only for orders and their change orders pending acknowledgment at the document and schedule level. To do this, use the Edit button to submit a change order. The types of changes you can propose are the same as for any change order. For example, you can propose changes to the price, quantity, delivery dates, and to split schedules.

Once you submit a change order, the status of the base document changes to Pending Change Approval. The change order is subject to the review and approval of the buying organization. The buyer can either:

  • Approve the changes. This merges the change order into the base document and opens the base document for implementation.

  • Reject the changes. This sets the status of the base document to Pending Supplier Acknowledgment.

You can repeat the process until the document is accepted and approved by both parties.

If you change your mind, you can withdraw the change order. The change order is canceled. The base document remains in Pending Supplier Acknowledgment status. You can still take an acknowledgment action to accept or reject the base document.

For larger numbers of acknowledgment actions, you can also use the Acknowledge Schedules from Spreadsheet task. Use the task to download all order schedules pending acknowledgment to a spreadsheet. Use the spreadsheet to indicate your acknowledgment response (accept, reject or propose a change) and upload your response to the application.

If your organization has implemented the Purchase Order web service, you can also use it to propose changes during acknowledgment. You can do this only for those purchase orders and their change orders requiring acknowledgment at the document and schedule level.

Acknowledge Purchase Order Schedules Using a Spreadsheet

As a supplier user, you can acknowledge purchase order schedules in batches using a spreadsheet. This applies only to purchase orders that are pending supplier acknowledgment at the document and schedule level. During acknowledgment you can also propose changes to the schedules, indicating to the buyer the changes required before you can fulfill the schedules.

Complete these three main tasks to acknowledge schedules using a spreadsheet:

  1. Navigate to the Acknowledge Schedules in Spreadsheet task and open the spreadsheet.

  2. Review the schedules in the spreadsheet and provide your acknowledgment responses.

  3. Upload the spreadsheet to update the application.

Prerequisite

Before you can acknowledge schedules using a spreadsheet, you must install the Oracle Application Development Framework Desktop Integration (ADFdi) client software on your computer. The add-in enables desktop integration with Microsoft Excel workbooks. Download the installation files from: Navigator > Tools > Download Desktop Integrator Installer.

Navigate to Task and Open Spreadsheet

Follow these steps to navigate to the Acknowledge Schedules in Spreadsheet task and open the spreadsheet.

  1. Sign in to Oracle Applications Cloud.

  2. Open the Supplier Portal work area. (Navigator > Supplier Portal work area).

  3. On the Overview page select the Acknowledge Schedules in Spreadsheet task.

  4. All purchase order schedules pending supplier acknowledgment, at the document and schedule level, are downloaded to an ADFdi spreadsheet.

  5. In the Opening AcknowledgeSchedules.xlsx dialog, select Open with Microsoft Office Excel, then click OK.

  6. In the Connect dialog, click Yes.

  7. In the Oracle Applications Cloud Sign In dialog, enter your User ID and Password, and click Sign In.

Review Schedules and Provide Responses or Changes

Follow these steps to use the Acknowledge Schedules spreadsheet to review the downloaded schedules and provide your responses or changes.

  1. In the Acknowledge Schedules spreadsheet, there are two tabs: Instructions and Acknowledge Schedules.

  2. On the Acknowledge Schedules tab, review the schedules in the spreadsheet. Determine which schedules to accept, reject, propose changes for, or take no action on.

  3. For each schedule in the spreadsheet that you want to act on, you can optionally take one of the following actions:

    1. Provide an acknowledgment response. In the Response column, select either Accept or Reject.

      You must provide a reason when you reject a schedule.

    2. Propose changes to the promised date, ordered quantity, or to split the schedule.

      You must provide a reason when proposing a change to the promised date or ordered quantity.

      Use the Split button to stagger schedule deliveries. This runs an Excel macro, see the Instructions tab about enabling macros in Excel. You must update the quantity and promised date on the original and split schedule.

Upload Spreadsheet to Update Application

Follow these steps to upload the edited spreadsheet and update the application.

  1. In the Acknowledge Schedules tab, on the spreadsheet ribbon, click the Upload icon to submit your responses and proposed changes.

  2. The Status column for each row displays the processing status for the uploaded purchase order schedule.

    1. Processed rows show the status: Row Updated Successfully. Click the Status Viewer icon on the spreadsheet ribbon. In the Status Viewer pane you can see the message: No Error.

    2. Processed split rows show the status: Row inserted successfully. Click the Status Viewer icon on the spreadsheet ribbon. In the Status Viewer pane you can see the message: No Error.

    3. Rows with an upload error show the status: Update Failed. Click the Status Viewer icon on the spreadsheet ribbon. In the Status Viewer pane you can examine the error details.

You can work in small batches. Take action on a few rows and upload them. After successful processing, you can click the Download icon in the spreadsheet ribbon. The application downloads any purchase order schedules remaining in pending acknowledgment status at the document and schedule level.

Sign Purchasing Document

As a buyer, you can prepare and send purchase agreements, purchase orders and change orders to obtain electronic signature. You can also manage purchasing documents that are sent for electronic signature.

Key aspects of working with purchasing documents that require electronic signature are:

  • Prerequisite feature configuration and setup.

  • Preparing and sending a purchasing document for electronic signature.

  • Managing a purchasing document that is sent for electronic signature.

Prerequisites

Before you can prepare a purchasing document for electronic signature, your organization must have completed the following prerequisite tasks:

  • Obtained a license from, registered with, and set up an administration account with DocuSign, the electronic signature service provider.

  • Enabled and configured the electronic signature feature in Oracle Applications Cloud, using the Setup and Maintenance work area.

  • Added you as a user to the DocuSign administration account.

Prepare Purchasing Document

You can prepare a purchasing document for electronic signature using the Purchase Agreements or Purchase Orders work areas.

  1. When you create the document, you can specify the document requires electronic signature. To do this, open the document. On the Edit Document page, select the Requires Signature check box on the Main tab, Terms subtab.

  2. When you are done creating the purchasing document, submit it for approval and acknowledgment.

  3. After approval and acknowledgment are complete, you can prepare the purchasing document for electronic signature. Open the purchasing document, and select the Prepare for Signature option from the Actions drop-down list.

The Prepare for Signature page includes the following:

  • The notification email.

  • The purchasing document PDF.

  • Any contract documents.

  • Any other attachments for the supplier.

You can use the Prepare for Signature page to perform actions such as:

  • Click the To button to review the email notification text.

  • Add signers as recipients to the notification email.

  • Enter a subject and message.

  • Assign a signature task to each recipient.

  • Add other documents as needed, so the signers can review all terms and conditions that are relevant to the purchasing document before they sign it.

  • Indicate whether to route the document for signature sequentially or concurrently.

When you are done preparing the purchasing document for signature, click the Send button to send the email notification to the signers.

Note: The Prepare for Signature page displays a DocuSign user interface within your application, integrating functionality from the electronic service provider's web site. For more information about using the page, refer to the DocuSign Support Center at https://support.docusign.com.
Manage Purchasing Document

In the Manage Agreements and Manage Orders tasks, you can search for purchasing documents requiring signature. Add the Requires Signature attribute as an advanced search field to find purchasing documents that are in process or electronically signed. You can also add the Requires Signature column to the search results.

After you send a document for signature, and the document is in Sent for Signature status, you can manage the signature process. With the purchasing document open, select the Manage Signature option from the Actions drop-down list. The Manage Signature page opens from the DocuSign web site. You can select the following options from the Other Actions drop-down list:

  • Correct: Use to enter missing or correct existing information. You can resend the document for signature.

  • Void: Use to make changes to the purchasing document after it is sent for signature. This withdraws the document from the electronic signature process.

  • View History: Use to view the signature history of the document.

This table lists electronic signature processing statuses you can view throughout the life cycle of a purchasing document that requires signature. A description of each status is also provided.

Status Description

Pending Signature Preparation

Applies to an approved document that requires signature and is pending signature preparation. Also applies to an approved document for which the signature packet has expired, or is manually voided.

Sent for Signature

Applies to a document which is prepared for and sent for signature.

Open

Applies to a document if all the signers sign it.

Rejected

Applies to a document if one of the signers declines to sign it.

The final electronically signed version of a purchasing document is stored in the application and is used for supplier communication.

Refresh Document Signature Status: How It Is Processed

As a procurement application administrator, you can manage the Refresh Document Signature Status scheduled process.

The scheduled process retrieves the signature status of all purchasing documents currently sent out for signature, and updates their status in the application.

Settings That Affect the Refresh Document Signature Status Process

You can schedule the process to run periodically at a specified interval. To do this, from the Navigator click Scheduled Processes.

How the Purchasing Document Signature Status Is Processed

The scheduled process reviews the status of all in process signature packets for documents requiring signature. The status of the documents is updated in the application. The final electronically signed version of a purchasing document signature packet is stored in the application, and is used for supplier communication.

After the scheduled process is run, users of the Manage Agreements and Manage Orders work areas can view the following:

  • Updated signature status of a purchasing document.

  • Updated document signature history.

How can I electronically sign a purchasing document?

When you are sent a purchasing document for your electronic signature, you receive an email from DocuSign sent on behalf of the sender. Review the email, follow the instructions to review the document and attachments, and sign or decline the document. For more information refer to the DocuSign Support Center at https://support.docusign.com.

Dispatch Purchase Order

Dispatch Purchase Order

Purchasing Document Report

Use the purchasing document report to communicate to the supplier the details of a purchase order or purchase agreement. The report provides information about goods or services that you require, costs, quantities, payment terms, and delivery schedules.

The purchasing document report is a PDF file. The report is typically created electronically following document approval. You can also run it manually.

Run the purchasing document report using the Communicate Purchasing Documents task, in the Purchase Agreements and Purchase Orders work areas. On the Communicate Purchasing Documents page, click the Submit New Process button.

Standard Parameters
Procurement BU

Select the procurement business unit.

Document Selection

Select documents to be processed. You can process a specific document or a group according to actions performed on the documents.

  • Changed

  • New

  • New and Changed

  • Specified

Note: Some of the following parameters may not be available based on your choice for Document Selection.
Document Type

Select the document type: Blanket Purchase Agreement, Contract Purchase Agreement, or Purchase Order.

Buyer

Select the buyer name.

Supplier

Select the supplier name.

Supplier Site

Select the supplier site to restrict the documents to a specific supplier site.

Sold-to Legal Entity

Select the sold-to legal entity.

Document Number

Enter the document number to communicate a specific document.

Change Order

Enter the change order to communicate a specific document.

Printer

Select your output device.

Purchasing Document Report Overview

Below are some highlights of the report contents. The fields that display vary based on the document type. For more information about predefined analytics and reports, see the Analyze and Report page for Oracle Procurement Cloud in the Oracle Help Center.

The following table includes important purchase order report contents for the document header.

Field Description

Order

The purchase order number.

Ordered

The total amount for all lines in the order.

Agreement

The purchase agreement number.

Agreement Amount

The total estimated amount for the purchase agreement.

Procurement BU

The name of the procurement business unit prints on line 1 followed by up to 3 lines of address. On line 5, the city, state (or province), and ZIP Code are printed. The country prints on line 6.

Page

The page number.

Sold To

The sold to information contains up to 3 lines of address. After the address, the city, state (or province), and ZIP Code is printed on line 4. On line 5, the country is printed.

Supplier

The supplier name prints on line 1 followed by up to 3 lines of address. On line 5, the city, state (or province), and ZIP Code are printed. The country prints on line 6.

Ship To

The ship to information contains up to 3 lines of address. After the address, the city, state (or province), and ZIP Code is printed on line 4. On line 5, the country is printed. The ship to location is printed even if the same as the bill to location.

Bill To

The bill to information contains up to 3 lines of address. After the address, the city, state (or province), and ZIP Code is printed on line 4. On line 5, the country is printed. The bill to location is printed even if the same as the ship to location.

Payment Terms

The payment terms are specified as a payment due date and, optionally, a discount percent and discount due date.

Freight Terms

The Freight Terms are negotiated with the supplier. The terms specify whether you or the supplier pays for freight charges on goods you order from the supplier.

FOB (Freight on Board)

The FOB specifies the point or location where ownership title of goods is transferred from the supplier to you. For example, Origin or Destination.

Shipping Method

The specific shipping method to be used. For example: Ground, or Airborne.

The following table includes important purchase order report contents for the document lines.

Field Description

Line

The purchase order line number.

Item

The description of the goods or services.

UOM

The unit of measure for the item.

Price

The item price.

Quantity

The quantity of the item you are ordering, if the line type is quantity-based.

Set Up the Purchasing Document Email Sender

Use the Purchase Order Email Sender profile option to set up the email sender for purchasing documents sent to suppliers.

As an administrator you can set up the profile option using the Manage Administrator Profile Values page. To configure the profile option:

  1. In the Setup and Maintenance work area, access the Manage Administrator Profile Values task in the Procurement Foundation functional area.

  2. On the Manage Administrator Profile Values page, in the Application drop-down list, select Purchasing. Then click Search.

  3. In the Search Results, open the PO_FROM_EMAIL_ADDRESS profile option code.

  4. You can configure the profile option at the site level only. In the Profile Values section select one of the values: Buyer or Automatic.

Buyer

Buyer is the default value. The buyer's electronic mail address is used to send purchasing documents to the supplier. The supplier can reply to the buyer's electronic mail address, rather than a system-generated one which does not accept any reply.

Automatic

If you select this value, the system-generated electronic mail address is used to send purchasing documents to the supplier. The system-generated electronic mail address does not accept any reply. You might choose this value if, for example, your supplier's email system filters out the buyer emails.

Send Purchasing Document Attachments as Separate Files in Supplier Emails

As an administrator with the required privilege, you can configure the application to send purchasing document attachments as separate files in the supplier emails. Attaching separate files avoids blocking of a Zip file by your suppliers' email applications.

To configure the application to send purchasing document attachments as separate files, opt in to and enable the Send Purchasing Document Attachments as Separate Files feature in the Offerings work area, in the Procurement offering.

You can enable and disable this feature as needed. When the feature is enabled, all attachments marked as To Supplier are presented to the supplier as separate attachments in the email communication.

Modifying a Delivered Email Template to Communicate Purchasing Documents: Procedure

As an implementor or procurement application administrator, you can modify templates for outgoing supplier email communications of purchasing documents. To do this, use Oracle Business Intelligence Publisher to make a copy of the delivered Purchase Document Email Report that contains the templates. You can modify the templates to tailor the email subject line or body text for a purchasing document type.

You can find the Purchase Document Email Data Model in the Reports and Analytics catalog, in the Purchasing folder. The data model contains delivered attributes, and you can extend it to meet your organization's requirements. You can also find the Purchase Document Email Report in the catalog's Purchasing folder. The report references the data model. The report includes these email document templates:

  • Purchase Order Email Subject

  • Purchase Order Email Body

  • Purchase Agreement Email Subject

  • Purchase Agreement Email Body

Modifying a Default Email Template

To modify a delivered email template follow these steps:

  1. In the Navigator, click Reports and Analytics.

  2. On the Reports and Analytics page, click the Browse Catalog icon.

  3. On the Catalog page, in the Folders pane, open the Purchasing folder. (Under the Shared Folders folder > Procurement folder.)

  4. In the Purchasing folder, locate the Purchase Document Email Report, click the More link, and click Customize.

    1. The application creates a copy of the report in your Custom folder. (Under the Shared Folders folder.)

  5. Locate the copy of the Purchase Document Email Report. (Under the Shared Folders folder > Custom folder > Procurement folder > Purchasing folder.)

  6. Click the copy of the Purchase Document Email Report to select it, and click Edit.

  7. On the Purchase Document Email Report page, select the template that you want to modify. Select the template that corresponds to the document type (agreement or order) and section (subject or body). For example, Purchase Order Email Subject Template.

  8. Click Edit to download the template file. For example, the template file might have a file name such as Purchase Order Subject Layout.rtf.

  9. Use Oracle Business Publisher desktop tools to edit the template.

  10. Upload the modified template back to Oracle Business Intelligence Publisher. Select the appropriate folder for your implementation.

How can I suppress supplier communication when importing purchasing documents?

Use the import parameters Communicate Orders and Communicate Agreements to control whether or not to disable supplier communications when importing purchasing documents. When you set either parameter to No, an imported order, change order, or agreement is not communicated to the supplier. You can find the Import Orders, Import Blanket Agreements, and Import Contract Agreements tasks in the Purchase Order and Purchase Agreement work areas.

Control Supplier Communications

As procurement application administrator, you can control supplier communications using profile options. You can turn on or off supplier communications, or override the supplier recipient email.

For example, you can disable outbound supplier email communication in test environments. This allows you to simulate procurement flows using data migrated from a production environment, without communicating purchasing documents to your suppliers. Use these two purchasing profile options to control supplier communications.

  • Control Supplier Communication

  • Override Email Address

To configure the profile options, follow these steps:

  1. In the Setup and Maintenance work area, access the Manage Administrator Profile Values task in the Procurement Foundation functional area.

  2. On the Manage Administrator Profile Values page, in the Application drop-down list, select Purchasing. Then click Search.

  3. In the Search Results, locate and click the profile option: Control Supplier Communication.

    1. Use the profile option to control outbound supplier communication. The profile option may only be configured at the site level.

  4. In the PO_CONTROL_SUPPLIER_COMMUNICATION: Profile Values section, select a value. This table lists the values and their descriptions.

    Value Description

    Enable

    Select this value to enable all outbound supplier communication.

    Disable

    Select this value to disable all outbound supplier communication.

    Override Email Recipient

    Select this value to simulate communication. All supplier communication, including electronic communication, is directed to the email specified in the profile option: Override Email. An email is sent for all types of communication, without respect to the method specified on a purchasing document.

  5. Click Save.

  6. If you selected the Override Email Recipient value for the Control Supplier Communication profile option, continue to follow these additional steps.

    In the Search Results, locate and click to select the profile option: Override Email Address.

    1. Use the profile option to specify a fixed address to which all supplier email communications are sent. Configure this option when the profile option Control Supplier Communication is set to the value Override Email Recipient. The profile option may only be configured at the site level.

  7. Click Save.

How can I enable delivery of purchase order attachments using electronic messaging?

You can enable the delivery of attachments with purchase orders and change orders when using Oracle Fusion Collaboration Messaging Framework. To do this, sign in as procurement application administrator. Use the following profile option: Include Attachments in Electronic Communication. Find the profile option in the Setup and Maintenance work area, Manage Administrator Profile Values task.

When the profile option is enabled, you can include an attachment in communications using Oracle Fusion Collaboration Messaging Framework when the attachment is:

  • Attached at the purchase order or change order document header, line or schedule level.

  • Classified as: To Supplier.

Amend Purchase Order

As a procurement agent, requester, supplier or catalog administrator, you can propose changes to an active purchasing document. Using a change order, you can indicate changes to the current version of a document, including cancellation of the document.

You can manage change orders throughout the life cycle of a purchasing document, including:

  • Creation

  • Approval

  • Dispatch

  • Implementation

This figure shows the flow of change orders through the typical document life cycle, from creation through approval, dispatch and implementation. In this typical flow a user creates a change order for a document and submits it for approval. Once approved, the change order can be communicated to the supplier for acknowledgment.

Typical process flow of creation, approval, dispatch,
and implementation for a change order.

Create

You can initiate a change on a purchasing document. To do this, open the document from your own work area. You can search for the document, create a change order using the Edit action, and start proposing changes. The scope of change that you can propose is determined by the work area that you are using to open the document. For example:

  • As a buyer using the Purchase Orders work area, you can propose changes to a purchase order's contract terms and conditions.

  • As a supplier using the Supplier Portal work area, you can propose changes to a purchase order requiring acknowledgment at the document and schedule level.

  • As a catalog administrator using the Catalog work area, you can upload lines to a purchase agreement.

On the Edit Change Order page, select the Review Changes action to review the details of the proposed changes. The Review Changes page shows each attribute you are changing, and its original and changed values.

When you submit a change order for approval, the application validates the change order for accuracy, completeness and policy deviations.

Approve

When you submit a change order, the application uses the same approval workflow to route the change order as for a purchasing document. Attributes relevant for a change order are available for you to use in approval rules, such as:

  • PO Ordered Amount Changed

  • Price Change Percent

  • Nonstandard Clause Modified

As an internal user, you can view the approvers for your change order, based on the routing rules, using the Manage Approvals page. You can insert additional approvers and viewers, if needed.

As an approver, you receive an approval request highlighting critical information you can use to make an approval decision, such as:

  • Party initiating the change.

  • Amount changed.

  • Contract deviations.

You can navigate to the approval task detail to view the purchasing document in its entirety. If needed, you may request more information.

Dispatch

You can communicate an external change order using a supplier's preferred means, such as business to business, print, fax or email. Manually communicate a change order to a supplier using the Communicate action. Communicate change orders in batch using the Communicate Purchasing Documents task. As a supplier user you can view the change order using the Supplier Portal work area.

As a procurement agent, you may optionally require supplier acknowledgment on an external change order. A procurement agent for the buying organization can also record a supplier's offline acknowledgment.

As a supplier user, you can use the Supplier Portal work area's Acknowledgment page to perform acknowledgment online. For purchase orders and their change orders requiring acknowledgment at the document and schedule level, supplier users may propose changes during acknowledgment.

Implement

When you implement a change order, the application validates that the change order information is still valid.

  • If the change order information is still valid, the application makes the changes to the active purchasing document.

  • If not, the change order is canceled and the change order initiator is notified.

The active purchasing document is revised when an external change order is implemented. The application archives change orders, external or internal. This provides you visibility into the changes made to a purchasing document. You can view them using the Change History page. Supplier users can view all external change orders using the Revision History page. The application notifies relevant parties of successful implementation of a change order.

Change Order Numbering

The number assigned to a change order reflects whether the purchasing document is new, or is open.

After a purchasing document is approved, but prior to its implementation, you can make edits using a change order. The change order numbering starts from 0-1, where:

  • 0 indicates the revision number of the base purchasing document, and,

  • 1 indicates the change order number.

Subsequent edits during this time create change orders with similar numbering, such as 0-2, 0-3, and so on.

After a purchasing document is open, the numbering for change orders is 1, 2, 3 and so on. If you create a change order on top of a change order, the numbering is 1-1, 1-2, and so on.

Use the Social link on the Edit Change Order page to invite the requester to a conversation regarding the changes related to delivery dates.

For example, a supplier requests a change to a purchase order promised delivery date moving it out by 3 days. You need to communicate with the requester to determine if this is acceptable, but you would like to associate your exchange with a particular purchase order so you have a permanent record of what transpired.

  • Click Social to open the Oracle Social Network window and share or join the change order.

  • Click New Conversation and add the requester as a member.

  • Post your concerns and ask for a preference.

The requester can see certain attributes of the change order, such as Supplier and Purchase Order number, and your proposed action. The requester responds, you complete changes to the order and move on.

Create Purchase Order Change Order

As a procurement agent, requester, or supplier you can propose changes to the currently approved version of a purchasing document during issuance and fulfillment.

In any of these roles, evolving business conditions may require you to make changes to active purchasing documents. For example:

  • As a requester whose requisition is being processed in a purchase order, you may want to postpone or cancel what you have requested.

  • As a buyer who is responsible for administering a purchase order, you may want to change the terms or conditions on the order.

  • As a supplier who's tasked with fulfilling the order, you may want to stagger the delivery schedule or revise the pricing.

Change orders enable you to propose changes to an active purchasing document, by indicating your changes to the current version of the document.

During change order creation and approval, the currently approved version of the purchasing document is preserved until the change order processing is complete. The current version is used as the source of truth for all downstream activities such as receipts, invoices, and sourcing against an agreement. Only after approval, acceptance, and validation of the change order is complete does it gets applied to create a new version of the purchasing document.

Change orders enable all of the affected parties to propose changes to an active purchasing document by indicating their desired changes to the current version of the document. The change order is consider internal or external depending on the document attributes being changed.

A purchasing document is a contractually binding document between a buying organization and a selling organization, and hence it captures contractual terms like products or services to be delivered, delivery schedule and payment terms. Any change proposed to any of these kind of attributes must be communicated to and accepted by both parties before the changes become binding. These attributes are called supplier facing attributes.

In addition to supplier facing attributes, a purchasing document also contains attributes that are required for administrative purposes within the buying organization, such as cost centers or projects that would be funding the purchase, internal delivery instructions, various tolerances and controls to ensure satisfactory order execution. These attributes are called internal control attributes.

A change order that proposes changes to only internal control attributes is an internal change order, all other change orders are external. Change order type on a change order indicates whether the change order is an internal change order or an external change order. Unlike an external change order, an internal change order does not get communicated to the supplier and does not cause a new revision of the document. Although internal changes do not cause a new revision of the document, history of such changes is maintained in the same manner as external changes and can be accessed from the View Change History page.

FAQs for Create Purchase Order Change Order

How can I create a change order?

A change order is created by selecting the document and using the Edit or Cancel action. If an active change order does not exist, the application will create a change order for you.

You can view the document change history from the Search, View Purchase Order, or View Purchase Agreement page using the View Change History or the View Revision History action to view archived change orders relevant to you. Select a change order and take the Review Changes action to view the details of the changes that were proposed on the change order.

There can be only one active change order on a purchasing document at any point in time. If you have a change to propose and there is an active change order on the same document, you will need to wait for that change order to get processed. As the buyer on a purchasing document, the application allows you to prioritize your changes by allowing canceling the current change order even if it's not initiated by you and creating a new change order for you to propose your changes.

How can I set up an approval rule to route a requester-initiated change order to the requisition's overriding approver?

Create an approval rule with a condition to check if the backing requisition has an overriding approver. Also configure the condition to check if the change order is requester-initiated. In the rule action, you can route the change order approval through the override approver's job levels, supervisor hierarchy, or position hierarchy.

Create the approval rule using the Manage Purchasing Document Approvals task. Find the task in the Setup and Maintenance work area, Procurement offering, Approvals Management functional area.

How can I route a requester-initiated change order for approval to the requisition's overriding approver?

When you use the Purchase Requisitions work area to create a requisition, you can specify an override approver to replace the first approver. Your organization can also set up an approval rule to route any subsequent requester-initiated change orders to the same override approver. This ensures your override approver is also able to approve any changes you initiate after the requisition is processed into a purchase order.

Cancel Purchase Order Change Order

You can withdraw a change order that is pending approval or pending supplier acknowledgment using the Withdraw action, make further edits, and resubmit it for approval. You can also cancel the change order if the change is not required at all.

Update Purchase Order Change Order Details

You can view all changes proposed for a change order on the Review Changes page. This page shows all changed attributes, their original, and their new values. Changes made to contract terms are also shown. The page hides internal control attributes, as defined in the change order template, from suppliers.

Price Purchase Orders Retroactively

How can I apply my agreement pricing changes to existing open orders?

You can run the Launch Retroactive Price Update process to apply price changes from a blanket purchase agreement to purchase order lines created referencing the agreement line. Note that you can set up your agreement to launch this program automatically upon implementation of change orders with changes to pricing.

Retroactive Price Updates: How They Are Processed

Run the Initiate Retroactive Price Update scheduled process to apply price changes from a blanket purchase agreement to purchase order lines sourced from the agreement. To run the process, from the Purchase Agreements or Purchase Orders work areas, click the Initiate Retroactive Pricing Update task.

Settings That Affect Retroactive Price Updates

This table lists the parameters you can set, with their descriptions, for the Initiate Retroactive Price Update process. The parameters affect how the process selects purchase order lines to update with pricing changes.

Parameter Description

Procurement Business Unit

The BU that is responsible for and manages the purchasing transactions for the purchasing document.

Agreement Number

The specific BPA number for which you want the pricing updated. PO lines that reference the BPA are selected, subject to other settings.

Item

An item for which you want the pricing updated.

Category

A category for which you want the pricing updated.

Date From

A date to identify the purchase orders to be updated.

Communicate Updates

The communication method is determined by the supplier notification method for the supplier site. Select this check box if you want the updated releases or purchase orders communicated to the supplier.

How Retroactive Price Updates are Processed

The process runs based on the parameters you set. It uses the following additional criteria to select eligible PO lines for a price update:

  • If the Allow Retroactive Pricing of Purchase Orders option for the procurement BU is set to Open Orders Only, PO lines having schedules that are received (accrued on receipt) or billed are not updated.

  • The source BPA lines must have a Price Break Type of Noncumulative.

  • Draft purchase orders with the following statuses are selected: Incomplete, Rejected, and Withdrawn.

  • Open purchase orders, including orders which are approved and do not have a pending change order, with the following statuses are selected: Open, On Hold, Closed, Closed for Receiving, and Closed for Invoicing.

  • Purchase orders must not be frozen, and PO headers or lines not finally closed or canceled.

  • PO lines must have a Line Type of Goods.

  • A PO line's BPA revision number must be either blank, or less than the latest BPA revision number in which the referenced BPA line or its associated price breaks were last updated.

  • A PO schedule with the minimum schedule number must have a schedule need-by date later than the process parameter Date From. If the schedule need-by date is not available, the process checks against the purchase order schedule creation date.

Manage Purchase Order Life Cycle

Managing the purchase order life cycle enables all key stakeholders of the purchase order; the procurement agent, the requester, and the supplier to track and monitor the execution cycle of the order and initiate and manage changes to the order including cancellations.

Life Cycle Tasks

Key Life Cycle Tasks:

  • Track fulfillment status

  • Reassign order ownership from one agent to another

  • Control fulfillment activities

    • Place order on hold

    • Close order for invoicing

    • Close order for receiving

  • Control amendment activities

    • Initiate order amendments including cancellations

    • Freeze document

  • Finally close the document

Life Cycle Features

Key Life Cycle Features:

  • Work areas for buyers and suppliers

    • Deliver access to active orders in the queue

    • Highlight life cycle events requiring attention

  • Comprehensive life cycle management actions

  • Real time order fulfillment status

  • Embedded analytics

    • Provide trend statistics on buyer workload and activities

    • Provide supplier key performance indicators

  • Center driven procurement

    • Manage orders for multiple requisitioning business units

The following tables describe the effects of control actions or statuses on purchasing documents.

Purchase Orders

This table lists the effects of purchase order control actions. Purchase order control actions include: Close, Close for Invoicing, Close for Receiving, Cancel, Finally Close, Freeze and Hold. For a given control action, a corresponding control effect may be indicated as one of the following:

  • Yes, it does occur.

  • No, it does not occur.

  • Or, a more detailed explanation is provided.

Control Effect Close Close for Invoicing Close for Receiving Cancel Finally Close Freeze Hold

Modify controlled entity?

Yes

Yes

Yes

No

No

No

Yes

Action causes revision change?

No

No

No

Yes

No

No

No

Communicate document?

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Receive against controlled entity?

Yes

Yes

Yes

Yes, up to overreceipt tolerance

No

Yes

No

Return to supplier against controlled entity?

Yes

Yes

Yes

Yes

No

Yes

Yes

Invoice against controlled entity?

Yes

Yes

Yes

Yes

No

Yes

No

Effect on supply or available to promise?

Closed quantity no longer available as supply; supply is recreated when reopened

No effect

Closed quantity no longer available as supply; supply is recreated when reopened

Canceled quantity no longer available as supply

Finally Closed quantity no longer available as supply

No effect

No effect

Effect on associated requisitions?

No effect

No effect

No effect

Determined by Purchasing Options: Never, Always, Optional

No effect

No effect

No effect

Purchase Agreements

This table lists the effects of purchase agreement control actions. Purchase agreement control actions include: Cancel, Finally Close, Freeze and Hold. For a given control action, a corresponding control effect may be indicated as one of the following:

  • Yes, it does occur.

  • No, it does not occur.

Control Effect Cancel Finally Close Freeze Hold

Modify controlled entity?

No

No

No

Yes

Action causes revision change?

Yes

No

No

No

Communicate document?

Yes

Yes

Yes

Yes

Can release against the document?

No

No

Yes

No

Document History for Purchasing Documents: Explained

As a requester, category manager, buyer, approver or supplier you can track all actions taken on a purchasing document. Use the Document History page to view a sequential list of all actions that were performed on a given purchase agreement or purchase order.

You can view document history from the Purchase Agreements work area, Manage Agreements task, or the Purchase Orders work area, Manage Orders task. To view the page, open a document and either click the Status link or select the View Document History action.

Document History Information

The information you can view on the Document History is organized into three tracking levels:

  1. The header and status information for the original document.

  2. Actions taken on the original document. For example, Request Acknowledgment, or Change Order.

  3. Actions taken on change orders. For example, Submit.

History information you can view for a document includes:

  • Document header information, such as: buyer, supplier and supplier site, procurement business unit, document number, and status.

  • Action performed.

  • Performed by party and name.

  • Action date.

  • Additional Information.

Document history actions you can view include:

  • Approvals (For example: Submitted, Approved, Rejected)

  • Changes (For example: Change Submitted, Pending Change Approval, and Change Approved)

  • Other Actions (For example Canceled, Returned, or Reassigned)

Action Details

When you click an action link on the page, you can open additional pages to view further action details. For example:

  • Click a purchase order number link to view the order.

  • Click a change order link to view the change order page.

  • Click a submit action link to view the approval path for the document, including any approval actions already taken.

Reassign Purchasing Documents: How It's Processed

You can run a process to reassign purchasing documents from one buyer to another, including purchase agreements, contract agreements and purchase orders.

To run the process use the Reassign Purchasing Documents task, from the Purchase Agreements or Purchase Orders work area.

Note: To use the Reassign Purchasing Documents task you must have a role with the Reassign Purchasing Document privilege. For example, Procurement Manager, Category Manager or Buyer.

Settings That Affect the Reassign Purchasing Documents Process

This table lists selection parameters and their descriptions for the Reassign Purchasing Documents process.

Parameter Description

Document Type

Required. Reassigns documents based on document type. Values include: Purchase Agreements, Purchase Orders, and Purchase Orders and Agreements.

Procurement BU

Required. Reassigns documents for the specified procurement business unit.

Requisitioning BU

Optional. Reassigns documents for a specified requisitioning business unit within the procurement business unit.

Supplier

Optional. Reassigns documents for a specified supplier, within the specified procurement business unit.

Old Buyer

Required. Reassigns documents from the specified buyer to another specified new buyer.

New Buyer

Required. Reassigns documents from the specified old buyer to this specified new buyer.

How Reassign Purchasing Documents Is Processed

Based solely on the required parameters, you can reassign purchasing documents from one buyer to another, for a specified document type and procurement business unit.

You can also use the optional parameters to perform a more granular reassignment of a subset of those purchasing documents between buyers.

  • Reassign documents of a specified type for a requisitioning business unit within the procurement business unit.

  • Reassign documents of a specified type within the procurement business unit, for a specified supplier.

Centralized Procurement Billing: Explained

Procurement billing services can be centralized without requiring financial orchestration flows which simplifies both the process and the accounting.

Key components of centralized billing are:

  • Bill-to business unit (BU) as invoice processing party

  • Sold-to legal entity (LE) as the liable party

  • No inter-company invoices required

Bill-to Business Unit

This is the business unit which vouchers supplier invoices for a received purchase order. A single bill-to BU can serve as a centralized invoice processing party for multiple requisitioning business units. The bill-to BU on the purchase order is derived from the bill-to BU specified on the supplier site assignment for the requisitioning BU on the purchase order.

Sold-to Legal Entity

This is the legal entity that is financially responsible for the purchases on a purchase order and is specified on that purchase order. So even though the invoicing is handled by another party the liability for the purchase remains with this legal entity.

Inter-company Invoices

Using this method of centralized billing means that no inter-company invoices are required. Accounting for the purchases are managed through standard general ledger journal entries.

Use the Social link on the Edit Change Order page to invite the requester to a conversation regarding the changes related to delivery dates.

For example, a supplier requests a change to a purchase order promised delivery date moving it out by 3 days. You need to communicate with the requester to determine if this is acceptable, but you would like to associate your exchange with a particular purchase order so you have a permanent record of what transpired.

  • Click Social to open the Oracle Social Network window and share or join the change order.

  • Click New Conversation and add the requester as a member.

  • Post your concerns and ask for a preference.

The requester can see certain attributes of the change order, such as Supplier and Purchase Order number, and your proposed action. The requester responds, you complete changes to the order and move on.

FAQs for Track Purchase Order Life Cycle

You can check order fulfillment status using the Order Life Cycle page, which summarizes all downstream fulfillment and settlement activities including in-transit shipments, shipped amounts, receipts and invoices. It highlights any remaining pending balances pending for such activities. This page also provides links to further examine specific transaction details.

For additional information, from a schedule, you can drill down into the Schedule Life Cycle page.

Sometimes an order's receipt or invoicing numbers are larger than the order specifies. To quickly identify these situations at a glance, the application can be configured by your administrator to view order and schedule life cycle information as bar graphs instead of pie charts.

How can I find the history of an order or agreement?

You can view the Document History page. Open the page from the Purchase Orders work area, Manage Orders task, or the Purchase Agreements work area, Manage Agreement task.

  • In the search results, click the document's Status link.

  • On the document view or edit pages, click the document's Status link, or select the View Document History action.

Use the Document History page to view a comprehensive audit trail of all actions taken, changes proposed, and changes implemented on the document. You can also view action details for the document.

How can I view tracking or life cycle information on a consignment order?

You can view summary information regarding the consignment life cycle on the contextual area of the view purchase order page and the view purchase order schedule details page. You can also drill down to the Schedule Life Cycle page for more complete details.

The Schedule Life Cycle page allows you to track amount and quantity details such as agreed, ordered, shipped, consigned, delivered, and invoiced.

Close Purchase Order

What happens if a purchase order is closed?

You can close and reopen purchase orders and their components using the Actions menu. You would close the order if you don't expect any further transactions and want it not to appear on any open document queries. You can reopen either through a manual action or a return of material. In rare occasions, an increase in ordered quantity or the addition of new ordered items results in a reopen.

The application has the ability to automatically set the status to closed for schedules, lines, and entire orders based on controls that are defined by your organization. Once all schedules for a given line are closed, the line is closed. When all lines for a given header are closed, the document is closed.

The closing controls include:

  • Receipt Close Tolerance Percent

  • Receipt Close Point

  • Invoice Close Tolerance Percent

A schedule has a status of Closed for Receiving when it satisfies the two receipt close controls. This does not prevent further receipts but begins the steps necessary to automatically close the document. A schedule has a status of Closed for Invoicing when it satisfies the invoice close control. This status will not prevent you from matching an invoice to the purchase order or to the receipt but begins the steps needed to automatically close the document. Both of these statuses can apply to the header, line, and schedule levels.

What's an invoice close tolerance percent?

This setting is used to close a schedule for invoicing. It is the allowable difference (expressed as a percentage) between the amount invoiced stated on the order schedule and the actual amount invoiced. Invoiced amounts can vary up to this difference without preventing an automatic closed for receipt status. You can override this option for specific items and orders.

For example, with an invoice close tolerance percent of 99 the schedule would automatically be closed for invoicing when 1 percent of the amount is invoiced.

This setting is used in combination with the closing point to close a schedule for receiving. It is the allowable difference (expressed as a percentage) between the quantity stated on the order schedule and the actual quantity received. Quantities can vary up to this difference without preventing an automatic closed for receipt status. You can override this option for specific items and orders.

Note: You must also set the receiving close point.

For example, with a receipt close tolerance percent of 99 with a quantity ordered of 100 and a closing point of receipt the schedule would automatically be closed for receiving when 1 of the 100 are received.

Closing Purchase Order Schedules Using a Spreadsheet: Procedure

As a user with the Buyer role you can close or finally close approved purchase order schedules in batches using a spreadsheet. For example, you can review open transactions that have been inactive for a long period of time. If they are overdue for closure you can update their status.

Follow these steps to close schedules using a spreadsheet:

  • Select and download purchase order schedules to a spreadsheet.

  • Review the schedules in the spreadsheet and update their status to closed or finally closed.

  • Upload the spreadsheet to update the application.

Prerequisite

Before you can close schedules using a spreadsheet, you must install the Oracle ADF Desktop Integration client software on your computer. The add-in enables desktop integration with Microsoft Excel workbooks. Download the installation files from Navigator > Tools > Download Desktop Integrator Installer.

Select and Download Purchase Order Schedules

Follow these steps to select and download purchase order schedules to a spreadsheet:

  1. Navigator > Purchase Orders work area > Purchase Orders page.

  2. Task pane > Close Schedules in Spreadsheet task.

    Note: To see the task you must have the Close Purchase Order, or Final Close Purchase Order privilege.
  3. In the Close Schedules in Spreadsheet dialog, enter criteria to select the schedules you want to review for closure. This table lists the available selection criteria, whether or not the selection criteria is required, and additional comments.

    Selection Criteria Required? Comments

    Procurement BU

    Yes

    You must enter the procurement business unit for the purchase order schedules.

    The default value is derived from the following:

    1. The procurement business unit from your setup in the Manage Procurement Agents task, if you have only one business unit defined.

    2. Otherwise, the procurement business unit from the profile option Default Procurement Business Unit.

    3. Otherwise, no default value is displayed.

    Requisitioning BU

    Yes

    You must enter the requisitioning business unit for the purchase order schedules.

    The default value is derived from the following.

    1. The requisitioning business unit specified as a client of the procurement business unit, if there is only one requisitioning business unit specified.

    2. Otherwise, the requisitioning business unit from your setup in the Manage Procurement Agents task.

    3. Otherwise, no default value is displayed.

    From and To PO Creation Date

    No

    You can enter a date or date range during which the purchase orders were created.

    Days of Inactivity

    No

    You can enter the number of days since a purchasing document had receiving or invoice activity.

    Requester

    No

    You can select schedules containing distributions associated with a particular requester.

    From and To Budget Date

    No

    You can enter a date or date range for the budget period in the budget calendar. A schedule is included in the output if it has at least one distribution with a budget date within the given range.

    Exclude Project Related

    No

    You can opt to exclude purchase order schedules that have project-related distributions.

  4. Click Create in Spreadsheet. All schedules matching the selection criteria are downloaded to an ADFdi spreadsheet. In addition, the schedules downloaded include only those in the following statuses:

    • open

    • closed

    • closed for invoicing

    • closed for receiving

    • canceled

    • on hold

  5. In the Opening CloseSchedules.xlsx dialog, select Open with Microsoft Office Excel, then click OK.

  6. In the Connect dialog, click Yes.

  7. In the Oracle Fusion Applications Sign In dialog, enter your User ID and Password, and click Sign In.

Review the Schedules and Update Their Status

Follow these steps to use the Close Schedules spreadsheet to review the downloaded schedules and update their status:

  1. In the Close Schedules spreadsheet, there are two tabs: Instructions and Close Schedules.

  2. In the Close Schedules tab, the list of selection criteria used to download the rows of schedules displays at the top.

    1. Review the schedules in the spreadsheet to determine which to close, finally close, or to not act on.

    2. For each schedule in the spreadsheet, in the Action column, select one from the list of values: Close, Finally Close, or blank for those you choose not to act on.

    3. Optionally, you can enter a Reason for closing a schedule.

Upload the Spreadsheet to Update the Application

Follow these steps to upload the edited spreadsheet and update the application.

  1. In the Close Schedules tab on the spreadsheet ribbon, click the Upload icon.

  2. The Status column for each row displays the processing status for the uploaded purchase order schedule.

    1. Processed rows show the status: Row Updated Successfully. Click the Status Viewer icon on the spreadsheet ribbon. In the Status Viewer pane you can see the message: No Error.

    2. Rows with an upload error show the status: Update Failed. Click the Status Viewer icon on the spreadsheet ribbon. In the Status Viewer pane you can examine the error details.

You can work in small batches. Take action on a few rows and upload them. After successful processing, you can click the Download icon in the spreadsheet ribbon to download the updated schedules. The same combination of selection criteria used to create the original spreadsheet are used to retrieve the schedules. Any schedules that were updated to Finally Closed status are removed from the results.

Note: The maximum number of schedules that can be processed at one time using the spreadsheet is 5000. You can use the selection criteria on the Close Schedules in Spreadsheet dialog to process batches smaller than the maximum.

Freeze Purchase Order

What happens if I freeze a purchasing document?

Freeze your purchase orders to prevent changes or additions while maintaining the ability to receive and match invoices against received schedules. Freezing a purchase order cancels any pending change order that might exist on the purchase order.

Use the Actions menu to freeze or unfreeze a document.

Hold Purchase Order

What happens if a purchasing document is put on hold?

Place documents on hold to prevent receiving and invoicing until you remove the hold.

Use the Actions menu to hold or remove a hold on a document.

Retire Purchase Order

What happens if a purchasing document status is finally closed?

You can prevent modifications to or actions against completed documents, lines, and schedules by final closing them.

You can't perform certain actions against final-closed entities, such as receive, transfer, inspect, deliver, correct receipt quantities, invoice, return to supplier, or return to receiving. You can approve documents that include final-closed entities, but you can't approve documents that are final closed at the header level. You can print final-closed documents because that has no bearing on your contractual relationship with the supplier.

A schedule is finally closed when an accounts payable clerk indicates a final match while matching an invoice.