How Purchasing Documents are Created and Managed for Outside Processing

This topic explains how purchasing documents for outside processing are created and managed.

Settings That Affect Purchase Requisition Creation

Purchase requisitions for outside processing are created based on the setting of the Purchase Requisition Trigger plant parameter.

How Purchase Requisition Is Created

If the Purchase Requisition Trigger plant parameter is set to Work Order Release, purchase requisitions are created for all supplier operations on a work order when the work order is released.

If the parameter is set to Prior Operation Completion, purchase requisitions are created for a supplier operation on a work order when quantities are completed at the prior count point operation. If the supplier operation is the first count point operation, then the purchase requisition for the supplier operation is created when the work order is released.

In each of these scenarios, Oracle Manufacturing sends a request to Oracle Supply Chain Orchestration to create a purchase requisition.

Supply Chain Orchestration creates a supply order based on the request received from Manufacturing. It orchestrates the automatic creation of outside processing purchase requisitions in Self-Service Procurement. Whenever there is failure during requisition creation, SCO notifies Manufacturing and a new production exception is automatically created indicating what needs to be done to resolve the purchase requisition creation issues.

As a Production Supervisor or a Maintenance Manager, you can review the details of the exception and collaborate with a Supply Chain Application Administrator who has access to the Supply Orchestration work area to further review the details in the Supply Chain Orchestration pages. Based on the reasons of failure, users can fix the issues, and resubmit to reprocess the failed supply request or supply order line marked in exception. Alternatively, the supply request or the supply order line can be canceled requiring re-initiation of the requisition creation from the Review Supplier Operation Details page.

An outside processing purchase order is created in Oracle Purchasing from the purchase requisition based on the outside processing blanket agreement that's set up for the outside processing service item.

Supply Chain Orchestration maintains the details of the outside processing purchase requisitions and purchase orders, and provides drill-down capabilities to review additional details of the outside processing purchase orders.

Purchasing maintains manufacturing details (such as Work Order, Operation, and Product) for outside processing purchase orders. It displays the details at purchase order line and schedule levels, and uses the Manufacturing destination type for outside processing.

Oracle Purchasing also supports consecutive supplier operation scenarios. In consecutive outside processing, the Ship to Party, Ship-to Location, and Deliver to Location in the purchase order cut for the first supplier operation correspond to the Supplier and Supplier Site that services the next operation in sequence.