Purchase Requisitions for Outside Processing in Procurement

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

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

• How procurement fits into the outside processing flow.

• Prerequisite setup needed for the automated flow in procurement.

• Outside processing details visible on a requisition.

Procurement Role in Outside Processing

Oracle Fusion Cloud Procurement integrates with Oracle Fusion Cloud Supply Chain Management to support the automatic creation of requisition lines 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 Procurement 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 found in the Setup and Maintenance work area to configure the automatic creation and approval of requisitions for outside processing items:

• Create the supplier record for a provider of outside processing services. Use the Create Supplier task in the Suppliers functional area.

• Define account derivation rules. Use the Manage Mapping Sets task in the Procurement Transaction Account Rules functional area.

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

• Either use 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. Use the Create Agreements task, in the Purchase Agreements work area.

Outside Processing Details in Requisitions

An outside processing requisition can only come from the integration with Supply Chain Orchestration. You can't:

• See the externally managed, outside processing requisition in the Purchase Requisitions work area.

• Use the Purchase Requisitions work area to create requisitions with outside processing items, or source them to an agreement with an outside processing document style.

You can see the outside processing requisition information in the Purchase Orders work area, if the requisition isn't automatically converted into a purchase order. You can search for outside processing requisitions requiring manual processing, using the Process Requisitions and View Requisition Lines tasks. Use the Advanced Search function to add the Work Order Number as a search field.

In the search results, for outside processing items, the Description column displays an Information icon. Display text for the icon states, "This is an outside processing transaction". Click the icon to view the Manufacturing Details dialog.

When you review outside processing requisitions, in addition to the usual requisition information you can also see these details:

• Description on the requisition 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.

When a requisition line with an outside processing item isn't automatically converted to a purchase order, you can:

• Manually process the line into a purchase order.

• Split the requisition line.

You can't add an outside processing item to an existing order that doesn't have the outside processing document style applied.