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 Fusion Cloud Procurement integrates with Oracle Fusion Cloud Supply Chain Management, 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:

Oracle Fusion Supply Chain Orchestration calls the Purchase Request web service, to send a request to Procurement for an outside processing item.
The web service accepts the request to create an externally managed requisition for the item.
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.

How You 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 Oracle 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."

How You 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 can't:

Duplicate purchase orders or purchase order lines with an outside processing item.
Add an outside processing item to a purchase order that doesn't 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.