Basics of Purchasing

8/10/2019 Basics of Purchasing

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Copyright 2007, Oracle. All rights reserved.

Oracle Purchasing

Manufacturing Functional Foundation


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Objectives

After completing this lesson, you should be able to do

the following:

Discuss purchasing activity from requisition to

receipt of goods Identify the major tables used in purchasing and

receiving

Discuss the open interfaces and application

program interfaces for purchasing


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Agenda

Purchasing Overview

Purchasing Transactions and Entity Relationship

Diagrams

Purchasing Open Interfaces and Application Program

Interfaces


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Overview of the Purchasing Process

Create

requisition

AutoCreate

Purchasingdocument

Send tosupplier

Receive

goods

Approverequisition

Approve

document


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Purchase Requisitions

Edit and review requisitions online.

Review status and action history of your

requisitions.

Automatically source requisitions from openpurchase agreements and quotations.

Utilize requisition templates for items you purchase

frequently.

Create internally and externally fulfilled

requisitions.

Distribute expenses across multiple cost centers.


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Inventory WIP ASCP/MRP

Demand

RequisitionRequisition

Pool

Order Entry

Import / Reschedule

Requisitions

Supplier

Internal

Sales Order

Manually Approval

Order Mgmt

Where Purchase Requisitions Fit


7/30Copyright 2007, Oracle. All rights reserved.

Information Flow for Purchase Requisitions

Oracle MRP

Oracle Inventory

Oracle WIP

Purchase

OrdersOracle

Order Management

PurchaseRequisition

Process

Suppliers

Requirements

Subinventory

Replenishment

Outside Processing

Drop Shipments



Purchasing Documents

Select the appropriate purchase order document type for

your needs:

Standard purchase order

Contract purchase order

Blanket purchase agreement

Planned purchase order

Global agreement



Where Purchase Orders Come From

Manually create

Import / Reschedule

Requisitions

Create internalsales orderRequester

Order

Management

Approve

Inventory WIP ASCP/MRP

Demand

Other Systems

Createsupplier

purchase order

Source?



Information Flow for Purchase Orders

Oracle MRP

Oracle Inventory

Oracle WIP

PurchaseOrders

External Systems

PurchaseOrder

Process

Suppliers



Purchase Order Process

Receive

against PO

Match Invoices

against PO

Maintain Documents

Accept Revise Control

Approve

PO

AutoCreate ManuallyCreate

Requisition

Pool



Purchase Order Communication

There are several options available for delivery of Oracle

Purchasing documents to the supplier.

Print and deliver

Fax (Facsimile)

E-Mail (Electronic Mail)

EDI (Electronic Data Interchange)

XML (eXtensible Markup Language)



Receiving in Oracle Purchasing

Oracle Purchasing supports the following methods of

receiving:

Standard receipt

Direct receipt

Inspection required



Receiving Process

Shipment ofgoods

Inspection

Deliver

Inventory

Shop Floor

Expense

Receipt



Standard Purchasing Integration

Oracle

General Ledger

Oracle Payables

Oracle

Human Resources

Oracle Assets

Oracle

Cost Management

Oracle

Project Accounting

Oracle

Cash Management

OracleCBC

Oracle Alert

OracleWorkflow

Oracle

Purchasing

Oracle

Planning



Agenda

Purchasing Overview


Diagrams


Interfaces



Suppliers Window

Set up suppliers in the Suppliers window to record

information about individuals and companies from whom

you purchase goods and services.

Suppliers (Vision Operations)



Suppliers

PO_VENDOR_CONTACTS

PO_VENDORS

PO_VENDOR_SITES_ALL

HR_EMPLOYEES



Requisitions (Vision Operations)

Requisitions Window

With on-line requisitions, you can centralize your

purchasing department, source your requisitions with the

best suppliers, and ensure that you obtain the appropriate

management approval before creating purchase orders

from requisitions.



Requisitions

PO_REQUISITION_HEADERS_ALL

PO_REQUISITION_LINES_ALL

PO_REQ_DISTRIBUTIONS_ALL

HR_EMPLOYEES

MTL_SYSTEM_ITEMS_B

GL_CODE_COMBINATIONS



Purchase Orders Window

Use the Purchase Orders window to enter standard and

planned purchase orders as well as blanket and contract

purchase agreements.

Purchase Orders (Vision Operations)



Procurement Suite

PurchasingiSupplier Portal

Sourcing

iProcurement

Services

Procurement

Procurement

Contracts

BI for

Procurement

Supplier

Network



Purchasing Documents

PO_

RELEASES_ALL

PO_LINE_LOCATIONS_ALL

PO_HEADERS_ALL

PO_LINES_ALL

PO_DISTRIBUTIONS_ALL

GL_CODE_COMBINATIONS



Receiving Transactions

You can receive goods into a receiving location or to their

final destination.

Receipts (M1)



Receiving

MTL_MATERIAL_

TRANSACTIONS

RCV_SHIPMENT_HEADERS

MTL_SYSTEM_

ITEMS_B

RCV_SHIPMENT_

LINES

RCV_

TRANSACTIONS

RCV_SUPPLY

PO_

DISTRIBUTIONS_ALL

PO_LINE_LOCATIONS_ALL


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Agenda

Purchasing Overview


Diagrams


Interfaces


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Purchasing Open Interfaces

Requisitions Open Interface

Purchasing Documents Open Interface

Receiving Open Interface


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Purchasing APIs

Purchasing Order Change API

Cancel Purchase Order API

Custom Pricing API


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Buyers Work Center

Use the Buyers Work Center to create standard as well as

blanket and contract purchase agreements.


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Summary

In this lesson, you should have learned how to:

Discuss purchasing activity from requisition to

receipt of goods

Identify the major tables used in purchasing andreceiving

Discuss the open interfaces and application

program interfaces for purchasing

Basics of Purchasing

Documents

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