Examples of Purchase Order Line Types

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.

When to Use Quantity-Based Line Types

Use quantity-based line types when you want to specify the quantity, unit of measure, and unit price for the items you're ordering. Oracle 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

When to Use Fixed Price-Based Line Types

You can use fixed price-based line types when you want to order general business services by a fixed amount. 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

When to Use Rate-Based Line Types

You can use rate-based line types when you want to order services billed by quantity. Purchasing provides Rate Based Services as an initial rate-based line type. You create an order for rate-based service by selecting a line type, category, description, quantity, UOM, and unit price for the services you're ordering.

This table provides an example of a line with the line type of Rate Based Services.

Type	Description	Category	Quantity	UOM	Price
Rate Based Services	Underground Cable Installation	Installation and Maintenance	100	Square foot	$10