IBF PO Training Manual v2.0

TRAINING MANUAL
IBF E-Business Project Oracle EBS R12

Implementation
Purchasing
Author : Mr.MM
Creation Date : September 27, 2010
Last Updated :
Document Ref : BP080.Purchasing
Version : 1.0
Approvals:
Project Manager RRB

CSC
Process Owner IBF PS
Project Manager PS
IBF
Document Control
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Date Author Versi Change Reference
on
27- Mr.MMF 1.0 No Previous Document
Sep-
10
Reviewers
Name Position
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Copy Name Location

No.
1 Library Master Project Library
2 PS IBF Project Manager
3 Phanishankar Pingali CSC Delivery Manager
4 R R Bhuyan CSC Project Manager
Note To Holders:
If you receive an electronic copy of this document
and print it out, please write your name on the
Purchasing Training Manual IBF Page II

equivalent of the cover page, for document control
purposes.
If you receive a hard copy of this document, please
write your name on the front cover, for document
control purposes.

Contents
DOCUMENT CONTROL.......................................................................................................II
CONTENTS........................................................................................................................III
1. SCOPE OF TRAINING MANUAL DOCUMENT - PURCHASING...................................1
Introduction..............................................................................................................1
Purpose......................................................................................................................1
List of Common Processes..................................................................................1
Maintenance Activity by Purchasing Administrator..................................2
2. ORACLE PURCHASING TRANSACTIONS - OVERVIEW..................................................3

2.1. Purpose............................................................................................................3
2.2. Overview.........................................................................................................3
2.3. Configuration Activities.............................................................................3
3. REQUISITION PROCESS...............................................................................................4
3.1. Overview.........................................................................................................4
3.2. Creation of Purchase Requisition...........................................................4
3.2.1. Requisition Headers..............................................................................4
3.2.2. Requisition Lines....................................................................................5
3.2.3. Catalog......................................................................................................6
3.2.4. Source Details of the Line (Optional).............................................7
3.2.5. Line Details (Optional).........................................................................7
3.2.6. Currency....................................................................................................7
3.2.7. Shipment Information (Mandatory)................................................7
3.2.8. Enter the Requisition Distributions.................................................8
3.3. Forwarding and Approving Purchase Requisition............................9
3.3.1. Forwarding the Requisition................................................................9
3.3.2. Approving a requisition.....................................................................10
3.4. Viewing Requisition Status.....................................................................12
3.4.1. Overview.................................................................................................12
3.4.2. Viewing Requisition approval status............................................12
3.5. Amendment / Cancellation of Requisition........................................15
3.5.1. Overview.................................................................................................15
3.5.2. Ammendment / Cancellation by Preparer / Approver............15
3.5.2.1......................................................................Prerequisites
15
3.5.2.2.........Performing Amendment / Cancellation by Preparer /
Approver............................................................................................................15
3.5.3. Amendment / Cancellation by buyer...........................................17
3.5.3.1......................................................................Prerequisites
17
3.5.3.2.....................................................Performing Amendment
17

3.5.3.3........................................................Cancellation by Buyer
18
3.6. Auto - Indent...............................................................................................21
3.6.1. Automatic creation of Purchase Requisitions............................21
3.6.2. Overview.................................................................................................21
3.6.3. Process Pre-Requisites.......................................................................21
3.6.4. Requisitioning Process.......................................................................22
3.6.5. Reports from the Process..................................................................22
3.7. Reviewing of Entered/Approved Requisitions.................................22
4. RFQ PROCESS..........................................................................................................26
4.1. Overview.......................................................................................................26
4.2. Autocreating RFQs from Approved Requisitions...........................26
4.2.1. Automatic Creation.............................................................................26
4.2.2. Manual Creation using Document Builder..................................27
4.2.3. Adding to Existing document..........................................................28
4.3. Manual creation of RFQs without Requisitions..............................29
4.3.1. Entering RFQ Header Information.................................................29
4.4. RFQ LINES.....................................................................................................31
4.5. RFQ SHIPMENTS..........................................................................................32
4.6. RFQ Terms.....................................................................................................34
4.7. RFQ Suppliers List Manual Entry.......................................................35
4.8. RFQ Suppliers List Add From List..................................................36
5. QUOTATIONS.............................................................................................................38
5.1. Overview.......................................................................................................38
5.2. Copying from a RFQ..................................................................................38
5.2.1. Copy Document options....................................................................39
5.3. Manual creation of Quotations..............................................................41
5.3.1. Quotation Headers..............................................................................41
5.3.2. Quotation Lines....................................................................................42
5.3.3. Quotation Shipments/Price Breaks...............................................43
5.3.4. Quotation Terms...................................................................................43
6. QUOTATION ANALYSIS AND APPROVAL....................................................................45

6.1. Overview.......................................................................................................45
6.2. Querying the Quotations.........................................................................45
6.3. Analysis & Quotation Approval.............................................................46
7. PURCHASE ORDERS OVERVIEW................................................................................48

7.1. Overview.......................................................................................................48
7.2. Comparative Listing..................................................................................49
8. STANDARD PURCHASE ORDERS (SPO).....................................................................50

8.1. Autocreating Purchase Orders from Requisitions..........................50

8.1.1. Querying Requisitions........................................................................50
8.1.2. Standard Purchase Order..................................................................54
8.2. Manual Entry of Purchase Orders........................................................54
8.2.1. Standard Purchase Order Header..................................................55
8.2.2. Standard PO Lines...............................................................................56
8.2.3. Terms........................................................................................................57
8.2.4. Shipments...............................................................................................58
8.2.4.1...............To display and enter more shipment information
59
8.2.4.2.............................................To display status information
60
8.2.4.3................................To enter receiving control information
60
8.2.4.4...............To enter purchase order distribution information
61
8.2.4.5..............................To enter distribution detail information
62
8.2.5. Currency Information.........................................................................62
8.2.5.1............................................To enter currency information
63
8.2.6. Forwarding and Approving Standard Purchase Order............63
8.3. Viewing Purchase Order Status............................................................64
8.3.1. Overview.................................................................................................64
8.3.2. Querying Purchase Order Status...................................................64
8.3.2.1...................................................................Folder Window
64
8.3.2.2............................................................View Action History
65
8.3.2.3....................................................View PO Summary Lines
65
8.3.2.4............................................View PO Shipments Summary
65
9. NOTIFICATIONS AND DOCUMENT APPROVALS..........................................................67

9.1. Overview.......................................................................................................67
10. COPYING PURCHASE ORDERS...............................................................................69
11. PURCHASE DOCUMENT CONTROL.........................................................................72

11.1.Overview.......................................................................................................72
11.2.Document Control Options.....................................................................72
11.3.Exercising control options......................................................................73
11.4.Document Management..........................................................................74
12. PURCHASE ORDER AMENDMENTS.........................................................................75

12.1.Overview.......................................................................................................75

12.2.Document Revision Numbering............................................................75
12.3.Document Revision Rules.......................................................................75
12.4.Pre-Requisites for control........................................................................77
12.5.Standard conditions when an amendment can be performed. 77
12.5.1...........................................................Quantity Amendments
77
12.5.2................................................................Price Amendments
77
12.5.3...............................................................Other amendments
78
12.6.Amendment Process.................................................................................78
12.7.View Revisions............................................................................................78
13. MASTER DATA CREATION AND MAINTENANCE....................................................80
14. SUPPLIER LISTS.....................................................................................................81

14.1.Overview.......................................................................................................81
14.2.To define supplier lists.............................................................................81
15. CONTROLLING PURCHASING PERIODS..................................................................82

15.1.Overview.......................................................................................................82
15.2.Controlling Periods....................................................................................82
16. PURCHASING PERIOD CLOSING.............................................................................84

17. STANDARD REPORTS IN ORACLE PURCHASING....................................................87
17.1.Accrual Reconciliation Report...............................................................87
17.2.Accrual Write Off Report......................................................................87
17.3.Blanket and Planned PO Status Report.............................................87
17.4.Buyers Requisition Action Required Report....................................87
17.5.Cancelled Purchase Orders Report.....................................................87
17.6.Cancelled Requisitions Report..............................................................87
17.7.Invoice Price Variance Report................................................................87
17.8.Invoice Price Variance by Supplier Report........................................88
17.9.Item Detail Listing......................................................................................88
17.10. Open Purchase Order Report (By Buyer).......................................88
17.11. Printed Change Order Report.............................................................88
17.12. Printed Purchase Order Report..........................................................88
17.13. Printed Requisitions Report................................................................88
17.14. Purchase Agreement Audit Report..................................................88
17.15. Purchase Order Detail Report............................................................89
17.16. Purchase Order Distribution Detail Report...................................89
17.17. Purchase Order and Releases Detail Report................................89
17.18. Purchase Requisition Status Report................................................89
17.19. Purchase Summary Report by Category.......................................89
17.20. Purchasing Activity Register...............................................................89
17.21. Requisition Activity Register..............................................................89

17.22. Requisition Distribution Detail Report............................................89
17.23. Supplier Price Performance Analysis Report................................90
17.24. Supplier Purchase Summary Report...............................................90
17.25. Supplier Quality Performance Analysis Report...........................90
17.26. Supplier Service Performance Analysis Report...........................90
17.27. Supplier Volume Analysis Report......................................................90
17.28. Suppliers on Hold Report.....................................................................90
17.29. Uninvoiced Receipts Report...............................................................90

1. Scope of Training Manual Document - Purchasing
Introduction
This document contains a brief overview of how various tasks are to

be performed in the Purchasing module of Oracle Applications .This
document is not intended to be a replacement of the Oracle
Applications User Guide and shall have to be read in conjunction with
the below documents:
Oracle Applications Users Guide
Oracle Purchasing Users Guide
Oracle Inventory Users Guide and
The BP080 document submitted as part of the Implementation
Process.
The specific functionalities as may be relevant to the operations of

Purchasing have been discussed in the To-Be document(BP080) with
reference to the Business Processes.
This document has been organised as per the structure given in the
Table of Contents, providing procedures / information relevant to the
IBF Operations as well as certain general information / guidance
about the functions of Oracle Purchasing.
Purpose
This document covers the various Procurement transactions carried

out in IBF using the Oracle Purchasing.
In addition, this document also covers common period end &

administrative activities. These may be performed by specific
Administrator roles suggested.
This document covers various aspects such as

Navigation paths
Flow of transaction entry for each process
Explanation to various functions
Important fields in each form while entering/querying
transactions
Various Defaults at each level of transaction entry
Dos and Donts
Common problems and solutions
Purchasing Training Manual IBF Page 1 of 112

Reports to be run
Reconciliation Aspects
List of Common Processes
1. Supplier List (covered in Accounts Payable SOP)

2. Approved Supplier List (ASL)
3. Creation of Requisition Template
4. Item Definition (covered in Inventory SOP)
5. Period End process
Maintenance Activity by Purchasing Administrator
Below is the list of the maintenance Activities for Purchasing

Administrator:
1. Definition of Buyers who are authorized to create Purchase Orders.

2. Definition of new Document Approval Rules.
3. Assigning the approval rules to newly created positions.
4. Assigning Requisitions to Buyers through Manage Buyer Workload
Window.
All the above transactions / processes are documented in the

following pages with an activity breakup detail where relevant, to
enable the procurement users in following standard and streamlined
procedures across the IBF Group .
This document contains a brief overview of how various tasks are to

be performed in each of the above type of goods / services.

2. Oracle Purchasing Transactions - Overview
2.1. Purpose
This section will be covering the System Configuration and the

Transaction flow, as it will be done in Oracle Purchasing for the
following activities in the Procurement Cycle.
2.2. Overview
The core purchasing transactions are:
Configuration Activities
Requisitioning Process Auto Indent (Min-Max Planning).
Requisitioning Process - Raising manual Requisitions & submission for
approval.
RFQ, Quotation, Quote Analysis and Approval process.
Ordering Process - Purchase Orders & Agreements
Amendments and Controlling of Purchasing Documents
2.3. Configuration Activities
This consists of HRMS related set up, Category Set-up (covered in

Inventory Set up document), configuring Approval rules / Group &
assignment, Document Access, defining buyer and setting up profile
options, which have been covered in detail in Purchasing Set-up
document.

3. Requisition Process
3.1. Overview
Purchase Requisition is the document by which the Purchasing

Authority is requested to procure goods and services. The Purchase
Requisitions shall carry all relevant details about the items or services
to be procured and the following are the key data elements in a
Purchase Requisition.
1. Item Code and / or Description of the Item to be procured

along with the PO Item Category
2. Quantity Required and suggested Price (The price can be set
to zero if price information is not available)
3. Date when the goods are required. (Need by Date)
4. Justification for the requirement
5. Place and the store where the goods are required
6. Suggested Supplier Name and site (if known)
7. Accounting information
8. The Requestor name
3.2. Creation of Purchase Requisition
Navigation Path: Requisitions > Requisitions
In the manual creation of Purchase Requisition Process, Purchase

requisitions are raised by using the Requisition Entry Screen where all
details about the required item / service are entered and the
document is submitted for Approval.
During the manual creation of Purchase Requisitions, the following

information has to be entered:
a. Requisition Headers: This is where the Requisition Number and
preparer name is captured along with a brief description for the
Requisition.
b. Requisition Lines: In Requisition lines, the information on the
Item/Service requested and the price, required date and all
other information about the item, that is being requested must
be entered.
c. Distributions: In this zone, the accounting information for the
requisition line will be automatically created depending on the
nature of the item.

3.2.1. Requisition Headers
Select the requisition type as Purchase Requisition . This will

default when the form is opened.
Enter the requisition title in the Description field - This could be a
brief narration of the requisition.
The rest of the information at the header like preparer, status and
total etc. will be appearing by default based upon the employee
name attached to the user and the system setup.
Requisition number will be numeric and will be automatically

generated by the system after the document is saved. The document
should be saved only after entering other details in the line and
distributions zones of the form.
3.2.2. Requisition Lines
Navigate to the Requisition Line Region

Enter a line Type for the requisition line. Line types help in defining
the categorization of the items. The default Line Type is Goods.
Additional Line Type such as Service has been defined to meet the
requirements of IBF . Based on the kind of items / services to be

entered on the requisition line, the user should select the
appropriate line type.
If the item is defined and assigned to the Ship-To inventory
organization, then select the appropriate item code.
If the item is not defined & goods have to be procured, then the
requestor will skip the item field and enter the item details in
the description field after choosing the appropriate purchasing
category combination.
In case the requisition template is defined, the requestor may refer
the Catalog option. This is done by selecting the Catalog button
and using the related Requisition Template. All the related
requisition lines for that item will be defaulting and the user will
only be entering the required quantity in the related field.
Similarly, the item and value can be chosen from the Prior
purchases window or from the Negotiated Sources options under
the catalog.
Enter the purchasing category. The category cannot be changed if
an item code is entered in the Item field. The category shall default
from the PO category as entered at the item level.
When an item code is entered, purchasing displays the item
description from the Items window. This description can be
changed, as the item is defined with Allow Description Update
attribute checked.
Enter the Quantity for the item being requested.
Enter the UOM (Unit Of Measure) to be used for the requisition line.
If an item code is entered, Purchasing defaults this UOM from the
Item Master.
Enter the unit Price for the item. The price can be entered in
decimal format. If an item code is entered, Purchasing defaults the
list price for this item, but the user can change this value.
Enter the Need By date for the requested items. A date greater
than or equal to the requisition creation date must be entered. This
is the date by which the goods / services are needed by the End
User.
Line Level attachment can be given for specifications of the item /
service or any other additional information.
3.2.3. Catalog
If the source detail doesnt default, click on the catalog button.

System pops up select price only mode, click yes. System will ask
for Find all records in folder, click yes.

Search Supplier item catalog form opens, system defaults
information from requisition form on the query screen. Click on
Find, system will show the Prior Purchases that ful-fill the query
criteria. Click the select button to select the source details on to
the requisition.
If no source exists, put a note the buyer to raise the quotation.
3.2.4. Source Details of the Line (Optional)
Navigate to the Source Details alternative region at the line level.

Since the source type is Supplier in case of purchase requisitions,
the user can enter the Note to Buyer, RFQ Required, Source
Document Type (Blanket or Quotation), source Document, and
document Line Number. However, this information can be entered
only after the Supplier is chosen in the Supplier field in the screen
below the Requisition Lines.
The user should not enter the buyer information. The buyer will
default from the Item Master in case of items contained in the Item
Master.
To refer a blanket agreement on a requisition, the preparer will use
the catalog functionality. If a blanket agreement exists for the item

and it is used as a source, then the blanket agreement number will
default in the requisition.
3.2.5. Line Details (Optional)
Navigate to the Details Tab at the line level. Enter any instructions
to be forwarded to the Receiver of Goods in the Note to Receiver
field. However, this information is not automatically copied onto
the Purchase Order as note to receiver. This has to be manually re-
entered in the Purchase Order. It is suggested that the Attachment
feature is used with the type as TO RECEIVER to pass any
instructions to the Receiver of the goods.
Enter the name of the employee for which material is being
requested in Justification field.
3.2.6. Currency
The default currency for a requisition will always be KES. The price,
which is entered against the item in the Lines, is the KES Value and
is not the foreign Currency Value. However in the case of foreign
currency requisitions, the following procedure needs to be
followed.
Navigate to the Currency alternative region through the currency
tab.
Enter a suggested currency for the requisition line. This must be
an enabled code from the Currency window & the currency rate
should be defined for the given date. The cursor enters the
remaining currency fields only if you have entered a currency here.
In case of the purchase requisitions in foreign currency, the
Corporate Rate Type will default along with the Exchange Rate
applicable for the date of creation of the document.
3.2.7. Shipment Information (Mandatory)
The lower part of the screen below the Lines alternative region
consists of optional fields for which the default can be set in the
Requisition Preferences window. It is recommended to use the
requisition preference zone for specifying major details prior to
enter the details in the requisition screen
Destination type: The following is the meaning of the destination
type.

Expense - The goods are for immediate consumption/usage and
are not going to be held in the Stores for future consumption
Inventory - The goods are to be received into inventory/Stores
upon delivery and then consumed on need basis. The quantity
will have to be tracked till issued from the Stores for
consumption.
The Destination Type field will default as Inventory in case
the item is stockable in the destination organization. However,
this default can be overridden at the Line Level. The same will
appear as Expense for non-stockable items in the destination
organization. The destination type shall default as expense for
services and one time procurement.
Enter the name of the employee who is requesting the item. The
default is the requisition preparer.
Enter the Organization. The available list of Organizations is limited
to the Organizations assigned to the Item in the Item Master.
Enter the delivery Location for the requested items. Purchasing
defaults the deliver-to location that you assign to the employee in
the Enter Person window. The user must provide a deliver-to
location before he can approve the requisition. Choose the
appropriate store location as Deliver to Location.
Enter the Sub inventory. This field applies only when the Deliver To
is Inventory. This is an optional field and you can mention the
appropriate sub-store depending on the item nature.
Enter the Source type. The default source type will be Supplier.
Enter the suggested Supplier, Supplier Site, Contact and Phone
Save the work. If the user saves a requisition line without entering
a distribution, Purchasing tries to generate a distribution line for
the user using a function known as Account Generator based on
the information the user has entered. Refer the distributions zone
for details of the account code and cost centre codes assigned to
the line.
3.2.8. Enter the Requisition Distributions
Navigate to the Distributions window by selecting the Distributions

button in the Requisitions window.
Enter the Quantity. In case of multiple distributions, quantities must
total to the requisition line quantity.
The Account Generator, (a function provided by the Application to

generate account codes) will generate the following accounts in the
distribution region.

Charge: The charge account
Accrual: The AP accrual account
Variance: The invoice price variance account
Budget: The budget account to account for encumbrance
Note: With one exception, the user cannot create or update these
accounts manually. In case the requisition line destination type is
Expense", the user can change the default charge account supplied
by Account Generator. Account Generator automatically builds the
accounts (charge, variance, accrual & budget) based on the logic
specified as part of the setup.
If the destination type is Inventory, the account codes cannot be
changed.
3.3. Forwarding and Approving Purchase Requisition
3.3.1. Forwarding the Requisition
Navigate to the Approve Document window by selecting the

Approve button. The requisition approval power is controlled as per
the rules framed in the Requisition Hierarchy. The requisition
preparer will only forward the document to the requisition approver
for further action.

Following are the approval actions available for the preparer and
the approver. There are two different actions and two separate
check boxes are available for these actions. If both approve and
forward are to be applied then both check boxes have to be
selected.
Approve - Approve the document. (Applicable when the
approver and the preparer are the same person). The
preparer will choose this option always to ensure that the
document entered automatically gets forwarded to the
immediate supervisor as defined in the approval hierarchy.
Forward - Forward the document to the approver.
(Note: If a requisition has to be approved by more than 1
person or if some action is needed to be performed by a
different approver, then the preparer shall have to select both
the Submit for Approval and the Forward option.)
Approval Hierarchy and the forward to employee name will appear
by default in the corresponding fields. If the default forward to is
not appropriate then choose an appropriate employee name to
which the requisition must be forwarded.
Enter notes in the Note field. This note will be appearing in the
notification window of the Forward To employee.
Select Print to print the requisition.
Select the OK button.

3.3.2. Approving a requisition
This action will be taken by the Managers of the concerned

purchasing authorities and others who are authorised to approve
requisition and defined in the system accordingly. The designated
approver will navigate to the notification summary screen to perform
this action.
When approver logs into the application, got to the Notification

sumary, the notifications would be listed in the Open Notifications.
On clicking the subject line, the system would take you the details of
the Purchase Requisition wherein the line level details would be
displayed as below.

Now the approver can take one of the below actions:
Approve - This action will be performed by choosing the Approve

option. This will forward the documents automatically to the next
higher authority in the approval process if the approver does not
have adequate approval limits. Any other information can be
entered in the Notes Field.
Approve & Forward This action will be performed by choosing the
said option and entering the Forward To person name. If this option
is chosen, the document will be forwarded to the specified person
with the status of either Inprocess or Pre-approved depending on
the approval limits of the forwarder. Enter the notes to convey any
information to the receiver.
Forward In case the concerned manager does not have approval
power or he wants this requisition to be approved by someone
else, then he can forward the same to others using this option after
selecting the name of the employee whom he is forwarding the
requisition to.
Reject This decision will return the requisition to the requisition
preparer. Always enter the cause of rejection in the Note field.
Reassign In case this notification is to be assigned to be someone
else, then using this option, one can reassign the notifications.
Request Information Using this option, one can ask for more
information either from the requestor or from someone else.
After any of the actions above, a notification would be sent back to

the requisition creator.
Note:
After approval, the requisition lines are transferred to the
Requisition Pool for further action by the concerned buyer only
when there is a buyer defined in the Purchase Requisition.
In such a case, where a new item code is assigned, the buyer
should modify the requisition line (using Core Purchasing >
Autocreate > Tool > Modify option) after the item is created and
process the same for procurement/fulfilment. Intimation of such
changes to requester is to be controlled manually.
3.4. Viewing Requisition Status

3.4.1. Overview
The status of the requisitions submitted for approval can be viewed

from Requisition Summary form. Here all requisitions could have any

one of these statuses i.e. Approved, In process, Pre-approved or
Incomplete.
If the requester has sufficient approval authority the document status

will be approved. Else it would show a status In Process. The
document will be available with the next person in Requesters
Hierarchy .
3.4.2. Viewing Requisition approval status
Navigation: Requisition > Requisition Summary
In Requisition Summary form, one can view requisition status using

various sorting criteria. User has to select a criteria, from the various
options available in the Find requisitions form. Screenshot of
Requisition criteria form and Requisition summary form are given
below:

The current status of the document including action taken on it can
be viewed in the View Action History Window by the requester Tools
menu.
Viewing Approval History

On moving the horizontal scroll bar to the right, user can see the
Order number field. Please note that for each requisition line, the PO
number can be seen.

3.5. Amendment / Cancellation of Requisition
3.5.1. Overview
Requisitions prepared by the Users can be amended either by the

Users or by the Approver of the document if they deem it fit or by the
Buyer where necessary.
Where the Users who created the requisition want to amend the
same, they can do so any time until the Requisition is converted into
a Purchase Order/Release. The approvers can amend only if the
document is pending for approval with them. Buyers can amend the
requisition only after the requisition is approved and awaiting further
action in the Requisition Pool.
Similarly, only the preparer of the requisition (Owner of the document
can do cancellation of requisitions) or any person defined as the
Buyer & the requisitions are submitted for approval (status other than
incomplete). The Owner can cancel such requisition only until the
requisition is converted into a Purchase Order/Release. Once
converted, only the buyer can cancel the purchase Order and also
cancel the underlying requisition. However, this cancellation by the
Buyer would be only optional so that the buyer cancels the
Requisition only when found necessary/relevant or when he has
received a communication to this effect from the Requestor.
The pre-requisites for cancellation are process dependent and hence

covered as part of the amendment process in the subsequent pages.
3.5.2. Ammendment / Cancellation by Preparer / Approver
3.5.2.1. Prerequisites
The Requisition should not have been converted onto a Purchase

Order/Release for it to be amended by the preparer.
The requisition should be pending for approval with the approver
for them to amend the same.
3.5.2.2. Performing Amendment / Cancellation by Preparer /

Approver
Navigation: Requisition > Requisition Summary

Using the Requisitions Summary in Oracle Purchasing, Users to
query for the requisition that needs to be amended or cancelled.
For the purpose of amendment:

Select appropriate requisition & click on Open button. Only the
Requisition with incomplete or rejected status can be opened.
On opening of the requisition, necessary amendments could be
performed on the requisition before submitting for approval by the
preparer.
For the purpose of Cancellation:
Select appropriate requisition, Click on Tools Menu and Control
Function. The Preparer can cancel only the requisitions that have a
status of Approved and Pre-approved.

Where the requisition is pending for approval, the approver can
amend the requisition during the Edit requisition function and then
exercise his approval authority. The approver can review the
requisition based on the links provided in the approval notification.
Where the approver wants the amendments to be performed by
the preparer, he/she can then reject the requisition with
appropriate comments to inform the preparer of the required
amendments.
After withdrawing, the preparer can then make necessary
amendments to the Requisition as desired and resubmit the same
for approval.
If a requisition needs to be cancelled, the Users can use the Cancel
function to perform the same. As stated earlier, a requisition can
not be cancelled if it has been placed on a Purchase Order/Release.
3.5.3. Amendment / Cancellation by buyer
3.5.3.1.Prerequisites
The approved requisition should be awaiting further action by a

buyer in the Requisition Pool.
Communication from the Preparer of the requisition about the need
for cancellation of a requisition placed on a Purchase Order. In this

case buyer has to cancel corresponding PO Line & then the
requisition line. However, the quantity should not have been
received against this PO.
3.5.3.2. Performing Amendment
Navigation: Oracle Purchasing > Purchase Order > Autocreate
Using the Autocreate functionality of the Core Purchasing, the Buyer

will select the requisition lines, which are to be modified.
Using the modify option, the buyer can then modify the requisition
lines. Such modification would automatically close the original
requisition line and create new line(s) with the information as entered
by the buyer. However, the expenditure charge account would be
defaulted from the original line that is being modified.
When the requisition lines are so modified, the approval status of
the requisition does not change. Where it has to be re-approved by
the Requestor, the Buyer will return the modified Requisition to the
Preparer, who will then review the change and resubmit for
approval by appropriate authorities. This will be a manual control.
However, this modification of requisition by the buyer is not
allowed when Encumbrance is enabled at requisition level. Hence,
the buyer will have to return the requisition to the Preparer with
appropriate comments who will then modify the requisition and
resubmit for approval.

When the requisition lines are so modified, the approval status of
the requisition does not change. Where it has to be re-approved by
the Requestor, the Buyer will return the modified Requisition to the
Preparer, who will then review the change and resubmit for
approval by appropriate authorities.
3.5.3.3. Cancellation by Buyer
Navigation: Oracle Purchasing > Purchase Order > Autocreate
Using the Autocreate functionality of the Core Purchasing, the Buyer

will select the requisition lines, which are to be cancelled.
Buyer can enter the reason why he is returning the requisition back
to the preparer. This can be made use of to clear the list of the
pending requisitions for which POs have already been created
separately (not through Autocreate route).

When the preparer logs into his self-service applications, he would be
able to see the notification as below.
On clicking the link, the below window with details would appear.

The preparer would be able to open the returned requisition in base
apps and make the necessary changes & resubmit the requisition.
The Action History would show the details as below.

The buyer can optionally cancel a requisition line at the time of
cancelling a Purchase Order. However, the buyer should ensure
that he has got proper communication to this effect.
3.6. Auto - Indent
3.6.1. Automatic creation of Purchase Requisitions
The automatic creation of Purchase Requisitions will be performed for

all the Engineering stock Items which are under Min-Max Planning.
This Automatic creation of Purchase Requisitions will be performed by
the Inventory Control Personnel who is responsible for maintaining
the Inventory Levels for all planned items.
The automatic creation of these requisitions are performed through a

system defined request (Concurrent Program : Min-Max Planning
Report). On a periodic basis, the Inventory Control Personnel; will
verify the stock levels for all the planned items and run the
concurrent program to verify the stock required and then to generate
the Requisitions automatically. Only for those Items which are Min-
Max Planned, such automatic requisitions can be generated. The
process is discussed in brief. For detail please refer Inventory SOP.
3.6.2. Overview
As discussed, certain Stock Items will follow Min-Max level planning.

Requisitioning of these items will be controlled by the respective
Inventory/Stores In Charge and will be driven by the Stock Levels and
the established Requisitioning Cycle.
These items will be requisitioned automatically based on the stock

levels. All the requisitions generated by running Min Max process will
be imported in Purchasing with an Approved status. Where the
situation demands, the Stores In Charge can create manual
requisitions using create requisition screen.
3.6.3. Process Pre-Requisites
This automatic requisitioning process requires certain parameters to

be fixed in advance as given below

All Stock Items that have to be placed under this process should be
Min-Max Planned and stock levels (minimum & maximum) should
be pre-defined.
Below attributes need to be setup for the items for which this Min-
Max Planning would be run:
o List price
o Source Type (set to Supplier)
o Make or Buy (set to Buy)
o Safety Stock Method (MUST be set to "Non-MRP Planned")
The requisition generation cycle/frequency should be established
for these items depending upon the processing lead times. This will
facilitate generation of requisitions on fixed time frames
automatically with out any user interventions. Fortnightly, Monthly
or Bi-monthly cycles should be established based on the
consumption levels and supply lead-time.
The Min-Max Planning concurrent program should be submitted
from an user who does not have approval power.
The system profile "INV:MIN-MAX REORDER APPROVAL" should be
set to one of the below values:
o Pre-Approved - On running the report, approved requisitions
would be available as pending for autocreate process in
commercial.
o Incomplete - Somebody responsible for Min-Max planning has to
submit the requisitions created automatically for approval.
o Approval Required - Requisitions would be in the workflow
notifications of the manager.
This option allows creating requisitions as either approved or
unapproved when running the Min-Max Planning report.
3.6.4. Requisitioning Process
After defining Min-Max levels and the Requisitioning Frequency,

Min-Max Planning report needs to be submitted by the Inventory
In-Charge.
This report will be submitted for a range of Items and will generate
requisitions to bring all stocks to the Maximum stock levels from
the Current stock levels.
The Requisition Import process submitted from Purchasing module

would import these requisitions for further processing.

These Requisitions will be auto-numbered and will have the status
of Approved.
Where supply contracts exist (in the form of Blanket Agreements),

and the Automatic sourcing set-up done system will automatically
raise the Blanket release. Where ever automatic sourcing rules are
not set-up the buyer will Autocreate a release against the Blanket
Agreement from the requisition using the Autocreate form, after
referencing appropriate blanket agreement.
3.6.5. Reports from the Process
MIN-MAX PLANNING REPORT
This report needs to be run to generate requisitions automatically.

This report will also provide information such as the Minimum and
Maximum stock levels, the On-hand quantity and the quantity, which
should be ordered/needs to be ordered.
REQUISITION IMPORT
The output from the Requisition Import process will provide

information as to the number of requisitions created with status
information by the process and number of error requisitions if any.
Any exception in the Import process will be highlighted in the
Requisition Import Exception Report.
Note : For Detailed Min Max Planning Process please refer the
Inventory Training Manual.
3.7. Reviewing of Entered/Approved Requisitions
The review of requisitions entered in the system can be performed by

using the Requisition Summary Form. This Summary form will have
to be used in the following cases
To find out the Action History of the document as to with whom the
document is pending for approval or who was the approver for the
document or the approval path taken by the document.
The approval status of the document as to whether the same has
been approved or In-Process for approval etc
Whether the items in the requisition has been placead on an RFQ,
Ordered through a Purchase Order/Release.
Whether the item has been delivered by the Supplier to the
Organization.

Requisition Summary Form
Navigation Path: Requisitions > Requisition Summary
Use this form to query the requisition and view in a summary form.
The summary form could be used to view the Header, Lines and/or
Distributions information of a requisition. On selecting the above
navigation path, the system will open a Find Requisitions Form with
various query parameters. Some of the key parameters by which
requisitions can be queried are as explained in the Viewing
Requisition Status.
1. Enter the requisition number. If you enter a requisition number,

you can also enter a Line number.
2. Enter the Preparer.
3. Enter the Buyer.
4. Select Yes or No to restrict the search to Modified requisitions.
5. Enter the Reference Number.
6. Enter the Import Source. Use this field to identify all requisitions
created from Min-Max Planning by using the Import Source as
INV.
7. Enter the Line Type as Goods, Services etc.
8. Use the alternative regions to further restrict the search:
a. In the Item region, you can enter the following search criteria:
Item number, Revision number, Category, item Description,
and Supplier Item number
b. In the Status region, you can limit the search by Approval
status (Approved, Incomplete, In Process, PreApproved,
Rejected, or Returned), Control status (Open, Cancelled, or
Finally Closed), or Reserved status (Yes or No).
c. In the Date Ranges region, you can enter date ranges for the
following dates: Creation, Need By, and Closed.
9. Select the Results group (Headers, Lines, or Distributions) to
determine which summary window to open. Depending on the
search criteria you have specified, all summary windows may
not be available. For example, if you specify criteria in the
Accounting region, only the Distributions summary window is
available.
The above enquiry parameters can be used both together or by any

combination and desired results can be obtained.

After entering the enquiry parameter, choose the Find button to get
the desired summary window for the chosen requisition. The
following are the various options available
a. Requisition Headers
b. Requisition Lines
c. Requisition Distributions.
The Open button in the new form will open the current requisition on
the requisition summary window.
Use the Requisition Headers Summary screen to perform following

actions/view information about the requisition
a. To view the approval status of the document

b. To view the action history on the requisition: This could be
achieved by using the view action history option in the
Special Menu.
c. To view the header level information of the requisition such as
Description, Amount, Preparer etc.
d. To drilldown to the Requisition lines.
e. To perform requisition Control actions such as Closing of
Requisition, Cancellation, Final closing of requisitions etc. This
could be done by using the Control Option in the Tools Menu.
Navigate/Drill down to the Requisition Lines window to perform

following actions/view information about the requisition lines.
a. To review the Item information and the quantity required

information.
b. To review the Order information and the delivery status for
the Item in the requisition.
c. To perform requisition control actions at the Line level such as
cancellation of requisition lines etc.
d. To drilldown to the Requisition Distribution Region.
Navigate / Drill down to the Requisition distributions window to review

the accounting information such as Charge Account etc for the
requisition line.

4. RFQ Process
4.1. Overview
RFQ's are primarily inquiry letters inviting select suppliers to submit

their bids or quotations for supply of specific items/services. The
RFQs can be communicated to the supplier either through Telephone,
Written Mail or through email.
RFQs can either be manually entered where there are no Purchase

Requisitions or can be auto created from approved or unapproved
requisitions.
4.2. Autocreating RFQs from Approved Requisitions
Navigation: Purchasing Responsibility > Auto create
This auto create documents process is used for auto creating the
Standard PO, RFQ, Planned PO and Blanket Release.
Based upon the type of requisitions, the buyer will be entering the
Approved option as either Yes or No in Find Requisition Lines
window.
In the autocreate documents window, the name of the employee
who has logged into the system will be defaulting as the buyer
name. The buyer will not be able to override the name and will be
able to autocreate RFQs or any other purchasing documents only
for the purchase requisitions assigned to him by the manager of
the concerned purchasing authority.
The following are the important fields in refining the search for
eligible purchase requisitions for auto creation process.
Status Approved to find approved requisitions
Enter Item Code to find requisitions for specific Items
Enter Requisition Number to find specific requisition
Enter Preparer or Requestor name to search for requisition
from specific person
Search by Item Description
Line Type Goods or Service
Press the Find button and view the requisition lines. The list of the
requisition lines as per the entered selection criteria will appear as
shown below.
The buyer would first select the requisition line and then choose
the Action as Create, Document Type as RFQ and grouping
method as Default.

4.2.1. Automatic Creation
The user will press the Automatic button to auto create the
required RFQ and the New Document window would open as
below:
Enter the RFQ Type from the list of RFQ Types (Standard RFQ, Bid
RFQ, and Catalog RFQ). Choose the Supplier List Name if a list of
suppliers by nature of the items supplied has been defined. Else
leave the field blank and the suppliers can be attached to the RFQ
after creation of the Document.
4.2.2. Manual Creation using Document Builder

In Manual mode, if the requisition selected has more than one line,
then the sequence of these lines can be altered in the shipment
then what is in requisition using Document Builder functionality.
After adding the requisition lines to the shipment line using Add To
Document button, user can press Create to build the document.
Choose the Create button to automatically create the RFQ. The

system will assign an RFQ Number and open the RFQ form for
further data entry and modification. The status of the autocreated
document by default will be In Process meaning thereby the
document is still in creation mode and is not yet complete.
The modifications to an auto created RFQ in the form of
information to be captured in an RFQ and the relevance of critical
fields are discussed under the process of Manual creation of RFQ
document.
4.2.3. Adding to Existing document
The buyer has the option to Add To existing RFQs or Purchase

Orders apart from creating new document. In this case, he has to
select the action as Add
To and choose the relevant document number as below.

On selecting the Document number and pressing OK, the
document would open and in case of Purchase Order or release, its
revision would go up depending on the approval status.
4.3. Manual creation of RFQs without Requisitions
Navigation: RFQs and Quotations > RFQs
Request for Quotations can also be manually created without any

requisitions.
The RFQ has following critical components:
o RFQ Header
o RFQ Lines
o Price Breaks/Shipments
o Terms
o Suppliers
4.3.1. Entering RFQ Header Information
Refer Screenshot below

In case of auto created RFQs, most of the RFQ header information
will automatically be copied from requisitions while they have to be
filled up manually in case of manual creation. In case of auto created
RFQs, modify only the relevant fields from out of the fields discussed
below.
Following are the details of the RFQ header.
Choose the appropriate Type of RFQ to be created.

o Bid RFQ is to be used when the RFQ is for supply of specific
Items/Services with specific Quantity and a specified Location.
These types of RFQs are classified as BID RFQs where the
suppliers will bid for the specific work. These RFQs are for
clearly defined works such as Properties Works, Supply of
special items where full detail of the shipment is available etc.
o Catalog RFQ or Standard RFQ is to be used when the
company is calling suppliers for providing the price/rate cards
for supply of goods or services valid for a given date range.
(Say prices at which goods can be supplied for one year or 6
months etc.)
Enter the Ship-To and Bill-To locations for the items on the RFQ.
Ship To and Bill To information will be coming default from the Set-
up Options but the buyer will have the option of modifying these
locations if req

Use the Status field to control the status of the RFQ. Following are
the type of
Status in RFQ and quotations:
o In Process - The initial status when you create the RFQ. The
RFQ should be maintained in this status until the completion
of the data entry.
o Active - Choose this status when the RFQ is complete and you
are ready to send it to your suppliers. Only Active RFQs are
printed.
o Closed - Choose this status to close the RFQ when all
suppliers have responded or when responses are no longer
required. When an RFQ is closed, Purchasing deletes all
follow up notifications associated with it.
Enter the due date by which the suppliers have to reply. This will
be the last date up to which supplier's quotations will be accepted
by the company. (Purchasing knows that whether a supplier replied
to an RFQ if a quotation is entered for this supplier referencing the
RFQ).
Enter the reply/receive via code for the method the supplier should
preferably use to send the quotation. For example the values can
be Fax / Email / Post.
In the description field, enter a brief narration of the RFQ to
identify the purpose of RFQ.
Enter the close date for the RFQ. This will be the date on which
quotations from all the suppliers would be done (like tender
opening date).
Select 'Require Quote Approval' to enforce approval of any
quotation referencing this RFQ before the quotation can be used
for a purchase order.
Purchasing displays the user's name as the buyer.
Enter the beginning and ending affectivity dates for the supplier
quotation. This will normally be the date range for which a valid
quotation is being requested from suppliers.
Choose the Currency in which the suppliers have to quote. The
default will be functional currency (INR) in Set of Books. This field
is irrelevant as the suppliers can quote for supply of goods in any
currency.
4.4. RFQ LINES
In case of auto created RFQs from requisitions, most of the details in

the Lines Region will get copied from the Requisitions. Review the

lines and then modify where necessary. In case of manual creation,
the line level information has to be entered manually.
Following are the important details of the Lines Region.
Line type will be GOODS by default. Change where required.

The item description, purchasing category, and unit of measure will
be automatically retrieved from the requisition in case of auto
created RFQs. Else choose the appropriate Item code & rest of the
fields will default from Item Master. In case of text items (where
the item code does not exist), choose the relevant PO Item
category and enter the description & UOM.
Enter an optional target price for the RFQ line. If the user does not
wish to indicate any target price, the field will be kept as zero
value. However this will not be printed in the RFQ letter that will be
sent to the Suppliers.
Following are the important details of the More region of the RFQ
lines
Select the More alternative region in the RFQs window

Enter the Minimum Order Quantity for the item on the RFQ line.
This quantity is to indicate to the supplier that this will be the
minimum committed quantity to be purchased from the supplier.
Enter the Maximum Order Quantity for the item on the RFQ line.
This is to indicate to the supplier that in no case the quantity to be
procured from the vendor will be exceeding this quantity. This
information is only indicative and need to be filled only when it is
required to be communicated to the supplier.
Enter a note to the supplier about this item. Mention any special
instructions or packing requirements for this item.

4.5. RFQ SHIPMENTS
Navigation: RFQs and Quotations > RFQ's > (B) Shipments
The Shipment information in the case of Bid type of RFQs (except

Catalog and Standard type of RFQs) must be filled with the quantity
and the destination details. This will be printed in the RFQ document
being sent to the suppliers where in the quantity requirement details
will be printed. Navigate to this form by selecting the Shipments
Button in the RFQ form.

In the case of Catalog or Standard RFQs, the Price Break button will
be available. No information needs to be entered in this region for
these RFQs and they will be relevant while entering the quotation
prices.
Choose the Inventory Organization where the goods are to be

delivered or the respective organization, which is responsible for
the work, as the case may be.
Choose the appropriate ship to location for delivery of goods or
Services. Choose the location, which is relevant to the inventory
organization. Based on the Location to Inventory Organization
assignment, the Ship-To org would normally default.
Enter the quantity required by the organization for which the
supplier is being asked to quote. Enter the date by when the
quantity is required in the Need by Date column. The Price column
would show the price as in the RFQ lines.
If the quantity is required in multiple shipments, then enter
multiple shipment lines in a similar fashion as described above.
Other fields in this region are default from the set-up. Do not
modify them.

4.6. RFQ Terms
The Terms, under which the quotations are being called for, can be
entered in the Terms form. Navigate to the Terms form by choosing
the Terms button in the RFQ form.
Payment Terms: Choose the Payment Terms applicable from the list
of pre-defined payment Terms. Leave the field blank if supplier has
to quote the terms.
Freight Terms: Chose the appropriate freight terms applicable to
determine mode of shipment. Leave this field blank if supplier has
to quote the term.
Carrier: Use this field to mention the Company's Freight Forwarder
Details for the RFQ. Leave this field blank if the same is not
relevant.
FOB: Chose the appropriate FOB Point when the ownership of the
goods gets transferred to.
Note to Supplier: Enter any special note to the Supplier in this
column. This note will be applicable for the entire RFQ and will be
printed in the RFQ form.

4.7. RFQ Suppliers List Manual Entry
Navigate to the RFQ Suppliers window by selecting the Suppliers

button in the RFQs window.

Enter the name of the active Supplier to be placed on the RFQ
Supplier list. The list of values displays the supplier name.
Enter the Supplier Site to be placed on the RFQ Supplier list for this
supplier. Choose the name of the Contact for this site if defined at
the time of supplier master definition.
For each supplier, there is a display of the responded date. This
responded date is the receipt date recorded for the quotation from
the supplier.
For each supplier, there is a display of the printed and responded
dates as well as the count of the number of times the RFQ has
been printed. The responded date is the receipt date recorded for
the quotation from the supplier.
They Include in Next RFQ Printing check box is checked when a
supplier is added. Printing the RFQ for a supplier can be postponed
by deselecting the check box. After printing the RFQ for a supplier,
Purchasing deselects this field. If the RFQ has to be reprinted for a
supplier, the user must use this window to select the field again.
Enter a unique sequence number for the supplier on the RFQ
Suppliers list. Purchasing uses this sequence number to print the
RFQs for these suppliers.
4.8. RFQ Suppliers List Add From List
Press the Add From List button in the RFQ Suppliers - RFQ
Number window. This would open Supplier Lists form with supplier
count in each list. Please note that this list should have been
defined already to use it.

Select the relevant Supplier List and press Apply. The suppliers
defined in the list would get copied to the RFQ Suppliers.
There would be a confirmation message that the suppliers have
been copied to the RFQ supplier list.
Now close the Supplier List window and return to the RFQ window.
Change the status of the RFQ from In Process to Active. Then only
this RFQ is available for further operations like Quotations.
On closing the base apps RFQ window, the control returns to the India
Localization RFQ window. For details on the Tax entry, please refer PO
section.

5. Quotations
5.1. Overview
Quotations are the documents stating the supplier's intent to supply

the required goods or services at the given price and terms. The
quotations received from the suppliers may be against a Request for
Quotation (RFQ) sent by the company or may be generic unsolicited
bids. In both cases, the details of the quotation such as the items to
be supplied, price, validity of the quotation etc. can be captured
using the Quotation entry form.
The Quotations can be created in either of the following ways

a. Copying from the related RFQ and then entering only the
supplier specific prices and terms and conditions as quoted by
the supplier.
b. Manually entering the quotation received from the supplier.
5.2. Copying from a RFQ
Navigation: RFQs and Quotations > RFQs > (T) Tools > Copy
Document
This is the method of creating the quotations sent by the vendor in

response to the RFQ sent to them. Using this option, the information
available in the RFQ can be defaulted onto the Quotation, as lot of
information on the supplier quotation is common to the data in the
RFQ. This is the easiest and fastest method of recording quotations
against RFQs. Listed below are the steps:
Query the relevant RFQ based upon the RFQ number or the
supplier.
The RFQ to be copied to a quotation must have the supplier list
attached to it.
Buyer should navigate to the Tools menu (Located at the Top) and
select the Copy Document option for copying the RFQ onto a
quotation. Subsequent to this action, the following window would
open.

5.2.1. Copy Document options
Action: Entire RFQ / RFQ Header Only / RFQ Header and Lines
It is suggested to use the Entire RFQ or the RFQ Header and
Lines options as this will default most of the RFQ information
onto Quotation and reduce the time taken for data entry.
Quotation number field will remain empty because of the
automatic quotation numbering method.
Choose the appropriate the document Type. All the list of Valid
Quotation types associated with the RFQ Document type will be
available to select. (Bid RFQ can be converted to Bid Quotation
only whereas Standard & Catalog RFQ can be converted to
Standard/Catalog type of Quotations.)
Enter the name of the active Supplier and his site from whom the
quotation is being received. The choice is restricted by the list of
suppliers who have been attached to the RFQ document.
Select the name of the Contact for this site if available.
Select Copy Attachments if you want to include the RFQ
attachments on to the quotation.

Select the OK button to copy the RFQ. Purchasing displays a
confirmation message as below and opens the new quotation in
the Quotations window. The quotations will have a system-
generated number.
If tax details need to be entered, then query the quotations in the
India Localization Quotation form and enter the tax details as
explained in the PO section.

In case of more than one quotation from the same supplier in
response to same RFQ number, the second quotation needs to be
entered by the same steps as above.
Detailed explanations for various fields in the Quotation Screen are
discussed under the 'Manual Creation of Quotations' process.
5.3. Manual creation of Quotations
Navigation: RFQs and Quotations > Quotations
Quotations will be created manually in the following situations:

1. When more than one quotation is received from a same supplier
against a single RFQ.
2. Quotations from monopoly suppliers where there are no
competitive quotes available and hence no RFQ is necessary.

3. Any other unsolicited quotations received from suppliers, which
can be used in the procurement process.
The quotation entry has following components where relevant

information has to be captured:
1. Quotation Headers
2. Quotation Lines
3. Quotation Shipment/Price Break Details
4. Quotation Terms
On opening the Quotations menu, Quotation form would open. Each
of the critical fields in the quotation entry form is discussed below.
5.3.1. Quotation Headers
From the Quotations window, press open button to open the base
apps quotation window.
Quotation number will be automatically assigned by the system on
saving the document.
Choose the appropriate type of the quotation in the Type field:
Select Catalog quotation or Standard Quotation to enter the
quotations. Chose any other type of quotation to enter supplier
quotation for a specific provision of goods/service known as Bid
Quotations. In the case of quotations copied from RFQ, the type
chosen at the time of copying is displayed here.

In case of copied quotations, Purchasing displays the
corresponding RFQ number from which the quotation had been
copied. In case of entering multiple quotations from one supplier,
this field has to be filled up after entering the Supplier details. For
unsolicited quotations, leave this field blank. The RFQ number can
be referenced, only if the supplier is included in the supplier list of
the RFQ being referred and the document types belong to the
same class (Bid or Catalog).
Select the Supplier Name and site from where the quotation has
been received. This defaults based on the selection if the
document has been copied from an RFQ. In case the buyer
changes the supplier or supplier site information on this quotation
after copying the RFQ number, the system removes the RFQ
number and it must be re-entered.
Enter the Ship-To and Bill-To locations for the items on the
quotation. The default shall be appearing from the setup, which
can be modified.
Use the Status field to control the status of the quotation:
o In Process - The initial status when the quotation is created.
o Active - Choose this status when the quotation is complete and
it is ready to be approved. Only Active quotations can be
compared and approved.
o Closed - When a quotation is approved, an expiration date is
provided for it. Purchasing sends a notification when the
quotation approaches expiration using the warning delay
defined in PO setup. The user can manually close the quotation
to acknowledge the notification. If the user does not
acknowledge the notification by closing the quotation, the status
of your quotation is still active. Closed quotation information
cannot be used on purchase orders.
Ensure that all unapproved quotations received against any RFQs
and approved quotations which have crossed the approval validity
period are marked with the Status of CLOSED for better control.
Enter the Supplier Quote number for reference in the Supplier
Quote field.
Select Approval required indicating that approval is required to
purchase goods based on this quotation.
The Response Date is the date you actually received the quotation.
The system defaults current date as the response date, but this
may be amended by the user.
Enter the beginning and ending effective dates for the quotation.
Purchasing displays the user's name as the Buyer. The buyer
entered here receives all notifications regarding this quotation.

Use the Currency button to enter the currency details of the
quotation. The system will default the corporate rate for the
purpose of conversion in case of Foreign Currency quotation.
5.3.2. Quotation Lines
The details at the lines are similar as that of the RFQ details.
Refer to the RFQ detailing as discussed earlier for the detail
explanation. The information as entered at the RFQ will appear as
default in case of quotations copied from an RFQ. The user will
change this information to reflect the quotation details as sent by
the supplier.
In case of manually entered quotations, the appropriate values
should have to be entered in the quotation lines region. The field
information are similar to the one discussed under the RFQ Lines
region.
Ensure that the base price as quoted by the supplier in the
quotation is entered in the Lines region under unit price column.
Enter the Notes from Supplier at the line level in the more region -
Notes from supplier field.
5.3.3. Quotation Shipments/Price Breaks
The shipment information will be similar to the Shipment

information as discussed in the RFQ Shipments region. Enter the
Price quoted by the supplier for the shipments in this region along
with the other details. These details will automatically default if the
Quotation is copied from the RFQ with Entire RFQ option. In any
other case, enter the shipment details and the price information
for the shipment.
In case of Catalog and Standard Quotations, the Price Break button
will be available to enter the Price Break information and record
the Volume based discount details. Enter the quantity and the net
price offered or discounts percentage on the base price (entered in
the lines region) along with the ship to location and inventory
organization information.
The Payment terms and other information will default based on the
supplier master definition, which can be overridden if they are
different.

5.3.4. Quotation Terms
The terms information are also similar to the RFQ Terms

information. However modifications have to be done to the default
values based on the quotation provided by the supplier.
The following additional information also needs to be entered.
Received Via: To record the reply mode of the supplier.
Quote Warning Delay: To identify the number of days in advance,
the system should send the Expiration warning notification to
the Buyer.
On completion of data entry of the Quotation, ensure that the
status of the quotation at the Header level is set to "ACTIVE". Only
active quotations will be considered for quotation analysis and
summary report and for approval.
Quotations must be approved in order to refer them to any
purchasing document.

6. Quotation Analysis and Approval
6.1. Overview
Navigation: RFQs and Quotations > Quote analysis

The quotation analysis in Oracle Purchasing can be used to
compare the various quotations received from many suppliers.
Online Quote Analysis will present key details about the quotations
being compared based on various query criteria as discussed
below.
6.2. Querying the Quotations
Select the Related RFQ number in the RFQ field to find all active
quotations received against it for comparison. Then select the Find
Button.
Purchasing opens the 'Analyze Quotations' window and displays
in the quotations alternative region all shipment/Price Break
lines from active quotations
For each shipment line, Purchasing displays the following
information: Quotation number, Supplier, Item Number, Item
Description, Unit Price, Currency, Freight Terms, Payment Terms,
Discount, RFQ reference number etc.
In the Shipment Approvals region, Purchasing displays all
existing approvals for the current line. Any of the existing
approvals can be deleted, or approvals can be added for the
current line as described in the following steps.
Export the quote analysis to excel file and make additional
changes if required, this could be used as MIS report for the
commercial department.

6.3. Analysis & Quotation Approval
Quotations can be approved using the function Quotation Approval.
Navigation: RFQs and Quotations > Quote Approval
Enter the query criteria to search for the relevant quotations in the
Find Quotations window.
Based upon the relevant selection criteria, the user will be pressing
the Find button and subsequently the list of the relevant
quotation lines will be appearing.
The following is the details of the Analyze Quotations screen after
pressing the Find button.

The Quotations can also be exported to Excel from the following path
File > Export on the Quotation Analysis screen
The approval can be either to a quotation in full or for a single line

(meaning thereby for only one item among the products offered
under the quotation).
Query for the approved quotation from the quotation form and
approve the appropriate lines. Add to the description of the
quotation, the lines approved for the purpose of quick reference.
If the approval is for the entire quotation, the approval recording
can be done by using the 'Approve Entire Quotation' button.
If the approval is only for one Item in the quotation, then the
concerned line shall have to be chosen and the approval will have
to be recorded at Shipment Approval form displayed below the
quotation analysis form. The following information shall be entered
while recording approval to a Quotation or Quotation shipment
line.
Approval types determine the types of documents on which you
can use the approved shipment. The available types are:
o All Orders (all types of purchase orders and requisitions)
o Purchase Agreements
o Requisitions
o Standard Purchase Order
Enter an approval reason from an available list of options.
Enter comments about your approval. Here type out the approver's
comments.

Enter the name of the Approver. Purchasing defaults the user's
name in this field.
Enter the Effective date range for the quotation's approval. This
represents the date range within which the offer of the supplier is
valid. The approved quotation shipments on your documents can
be used only if the quotation is active and if the current date is
within the effective dates. If an expiry date is not provided, the
shipment for the documents can always be used while the
quotation is active and approved.
Save the work
After approval of the quotation, ensure that the status of the other
competitive quotations received against the RFQ which were not
approved are changed to 'CLOSED'.

7. Purchase Orders Overview
7.1. Overview
Purchase Orders are the documents conveying the intention of the

company to buy the mentioned item or service from the specified
supplier and is a legally binding document.
Following are the different types of Purchase Orders that can be

raised through Oracle Purchasing:
o Standard Purchase Orders (SPO): This is similar to the normal

purchase orders made by the organization. In a Standard
Purchase Order, all details such as Item, Quantity, Price, Delivery
Schedule and place of delivery etc. are confirmed. The supplier
will be bound by the details in the Purchase Order.
o Planned Purchase Orders (PPO): However, a Planned purchase

order is similar to the Standard Purchase Order as discussed
above except that the Delivery Schedule provided in a Planned
Purchase Order is only tentative and not firm. All other details
such as Item, Quantity, and Price are confirmed.
o Blanket Purchase Agreement (BPA): A Blanket Purchase

Agreement is a Rate contract or supply agreement entered with a
supplier for provision of Goods / Services at an agreed rate over a
period of time. In a Blanket Agreement, only the Item and Rates
are confirmed while no delivery schedules are mentioned.
o Contract Purchase Agreement (CPA): This is a contractual

agreement entered into with a supplier where in only the total
value of purchases during a specified period is agreed upon along
with other terms and conditions. No specific reference to any
items or the item prices are agreed upon. This contract
agreement could be referred on a Standard Purchase Order as
and when some Procurement is made from the supplier with
whom a Contract Agreement exists.
o Blanket Release: Blanket Release is a document made against

the Blanket Agreement asking for supply of goods / services as
per the rates agreed upon with the supplier in the Blanket
Purchase agreement. This blanket release contains details such

as Item, Quantity, Price and Delivery details, which default from
the Blanket Purchase Agreement.
o Schedule Release: A Scheduled Release is the document made

against the Planned Purchase Order, which confirms the Delivery
Schedule. All other details as in the Planned Purchase Order will
be defaulted to the Schedule Release.
7.2. Comparative Listing
A comparative listing of all the above purchase order types is as

below:
Sr Ord
Del. Issu
. er Ite Qt Pri Term
Sched e Example
N Typ m y ce s
ule Doc
o. e
Valves,Pu
mps,Tools
1 SPO - ,harware
items,pai
nts etc.
Tentati Sche
ve dule
2 PPO
Sched Rele
ule ase
Blan
ket
3 BPA - - Chemicals
Rele
ase
Rate
Contract
4 CPA - - - - SPO
(based on
price list),

The above documents will be used by all the purchasing authorities in
various situations depending on the nature of the purchase activity.
The document creation process is discussed below in detail for all of
the above documents.

8. Standard Purchase Orders (SPO)
Standard purchase orders can be created either from the approved

requisitions automatically or can be manually entered without any
requisition reference. Also the product and price references from the
approved quotations can be copied onto Purchase Orders. Following
are the methods to be adopted for raising the standard purchase
order
8.1. Autocreating Purchase Orders from Requisitions

8.1.1. Querying Requisitions
This method can be used for auto creating the Standard PO, RFQ
and Blanket Release.
The following are the important fields in short listing the eligible
purchase requisitions for auto creation process.
Approved: Set this approval status value to YES to find approved
requisitions.
Buyer Name: This will default to the name of the person who has
logged in. Press clear button to clear the buyer entry as the
requisition would not be having Buyer name as the one who has
logged in.
Item
Requisition Number
Preparer & Requestor
Item Description
Line Type
Press the Find button and view the requisitions. The list of the
requisitions as per the entered selection criteria will appear as
shown below:
The buyer has to view the various information available against the
requisition lines such as Note to Receiver, Note to Buyer etc.
Buyers need to re-enter the information mentioned as Note to
Receiver in the Purchase Order after auto creation.
Enter the field Action as Create / Add To. Create value will be used
when a new PO needs to be auto created. The Add To value will be
used when the selected lines has to be added to an existing PO.
Select Document Type as Standard PO for auto creating the
standard PO. Other options for this field are Blanket Release, RFQ
and planned PO for auto creating the respective documents.
Select the Grouping method as Default.
Press the Automatic button to open the New Document Window.

Here select the supplier name to create the standard purchase
order. The supplier site would automatically default. Press the
Create button. This action will lead to creation of a P.O. The system
automatically generates the Purchase Order number.
Acknowledge the creation of the PO as below.

The auto created PO would open after closing the Find requisitions
window.
As the Price will default from Requisition, we need to go and
change the price. Please note that the details entered in the
requisition would still be available.
After creation of Purchase order, it would be in the state of

Incomplete. To copy the Information available in Quotation, We need
to go to Catalog Tab. Place Cursor on the Selected Line in the
Purchase Order and click on the catalog button. System pops up
select price only mode, click yes.

Here we can see
Negotiated Sources This displays all the quotations for the
Item which are open as on the given date
Prior Purchases This Displays the Prior purchases made against
the Item, giving details of the Supplier, Quantity and the rate at
which purchases were made.
Sourcing Rules This displays the Item and any Sourcing rules
defined against the given Item

From the Open Quotations available for this Item, Select the
Quotation, against which you want to raise the Purchase Order.
And when you press Select, the Quotation price gets updated to the
Purchase Order Line.
Click Save and then Approve the Purchase Order, to send the
Purchase Order for Approval.
8.1.2. Standard Purchase Order
Press the open button to open the base apps standard purchase
order.
The created Purchase Order shall initially have the status as
Incomplete and buyer will have the option of modifying the PO
details as required. The details of PO number, supplier, supplier
site, bill to and ship to site etc will default from the auto create
process.
The buyer has to navigate to Supplier Item Catalog to select
appropriate Quotation reference against each auto created PO
lines. The line price will default from selected Quotation price
break line & cannot be overridden. (This Process is Already
Explained earlier Pg 61 to 63). The buyer will provide a suitable
title to the purchase order and enter it in the description field.
The status of purchase order shall be Incomplete initially. As the
purchase order will be routed through the approval path, the status

will change accordingly to In Process, Approved, Returned,
Rejected and Pre-Approved etc.
All details of the PO are similar to the one discussed below for
Manual creation of Purchase Order. You can refer the Supplier
Quotation or previous purchase order onto the newly created
document for price reference.
8.2. Manual Entry of Purchase Orders
Navigation: Purchase Orders > Purchase Orders
Purchase Orders can also be entered manually without any

reference to a Requisition. This can be performed by directly
navigating to the Purchase Orders form as per the above
navigation.
On both manually entered Purchase Orders and auto created
Purchase Orders, price reference can be copied using the Catalog
option.
To enter the line details from the quotation, the buyer will press the
catalog button and by giving the appropriate parameters, he will
select the approved quotation from the Negotiated Sources block.
The details of the approved quotations will be copied to the PO
lines.
8.2.1. Standard Purchase Order Header
Purchasing will open the Standard Purchase Orders window when

the user has completed Auto creation of a purchase order or when
Purchase
the creation form is opened manually. The upper Orderpart
Header of the
Purchase Orders window has the following display-only fields:

Purchase Order
Lines
Created - The system date is displayed as the creation date.

Status - Possible order status values are:
Incomplete - The order has not been approved.
Approved - The order has been approved. It can be printed and
items can be received against it.
Requires Reapproval - The PO was approved and then made
changes that require that the preparer process the document
again for reapproval. Items cannot be received against such PO.
In process - The purchase order has been prepared and has
been forwarded for approval, as the person who has submitted
for approval is not having sufficient authority to approve.
Rejected- The purchase order has been rejected by the
approving authority and has been sent back to the preparer.
Total - For standard and planned purchase orders, Purchasing
displays the current total order amount of the lines on the
purchase order.
Amount Released This field is not applicable to the Standard
Purchase Order. For blanket and contract purchase agreements,
this field will indicate the current total Amount Released by means
of the blanket releases and scheduled releases documents.
Currency - Purchasing displays the functional currency. This is
overridden by supplier currency information. To change the

currency of the Purchase Order, choose the Currency Button in the
form and enter the currency details.
Purchase order number is auto created. Please note that at the
beginning of the new calendar year, the purchasing setup needs to
be modified to have the new purchase document sequences in
place. The reference of the Calendar year is captured in the
document numbers for Requisitions, Purchase Orders, RFQs and
Quotations. Refer the setup document for detailed information.
Enter the name of the Supplier for this purchase order. To approve
a purchase order, supplier name & supplier site name must be
provided.
Note: The supplier cannot be changed once the purchase order is
approved. The purchase order becomes a legal document when it
is approved. To change the supplier after a purchase order has
been approved, the existing purchase order must be cancelled and
a new one created for the other supplier.
Enter the supplier site. If the selected supplier has only one site, it
is defaulted into this field. Before approving a purchase order,
supplier site must be provided.
Optionally enter the name of the Contact at the supplier site. If the
selected supplier has only one contact name, it is defaulted into
this field.
Enter the Ship To and Bill To locations for the Purchase Order. The
Bill-To Location will be the Accounts Payable Dept and the Ship To
location will be the location where the goods are to be delivered. In
case, if the goods are to be delivered to a Freight Forwarder, select
the final destination where the goods are to be forwarded by the
Freight Forwarder in the Ship To Field. The Freight Forwarder
information will be captured under the Freight Carrier Field in the
Terms Region.
The buyer name will default.
The brief title of the PO will have to be entered in the Description
field, This is optional field
8.2.2. Standard PO Lines
Select the items alternative region in the Purchase Orders window.

Purchase line number defaults from auto create action or the
quotation if the Purchase Order Lines are copied using the catalog.
Purchasing displays the next sequential line number for the next
line available. The preparer can accept this number or enter any

line number that does not already exist. This number is used for
all alternative regions in the Purchase Orders window.
Line Type defaults from requisition or the quotation or can be
manually chosen. Select Goods for procuring Items and services,
which have been already coded in the Item Master. Also for text
items, either goods or services can be selected on a case-by-case
basis.
The Item / Services to be purchased are defaulted from the
requisition/quotation. The associated purchasing category, item
description, unit of measure associated with the item will default.
In case of services / one time item purchases which do not require
an item code to be defined, the item code field should be left blank
and only the Category and description field to be filled up or copied
from Requisition/Quotation. Any valid category combination can be
chosen by the Buyer to identify the nature of Goods / Services
being procured.
Enter the total quantity to be purchased. The Price will have to be
copied from the Quotation.
To refer to the quotation and price, catalog button has to be
pressed and the relevant active and approved quotation has to be
queried. On availability of approved and active quotation it has to
be selected on to the PO lines.
Enter either the Promised date or the Need by date. Where the
Purchase Order is auto created from the requisition the Need By
date will default from the requisition line. In case the Purchase
Order is copied from the quotation or manually entered, these
dates shall have to be entered.
Use the MORE regions to enter any instruction to the supplier for
the line item. This will have to be entered in the NOTE TO
SUPPLIER field.
8.2.3. Terms
Navigate to the purchase order details window by selecting the Terms

button in the purchase orders window.

Enter the Payment terms for the purchase order.
Enter the Freight terms for the purchase order.
Select the Freight Forwarder information in the Freight Carrier field.
Please note that One Purchase Order can have only one Freight
Forwarder.
Enter the FOB point for the purchase order. This is the point when
the responsibility of the Supplier for the goods ends.
Firm field is not relevant here as the same is used for
manufacturing planning control.
Agreement Control region indicates the effective dates and the
amount limit for the PO and this will appear grayed out in standard
purchase order.
Enter a Supplier Note and a Receiver Note. Any special instructions
to the Supplier in connection with the Purchase Order can be
entered in the Supplier Note field. Enter any special instructions to
the Receiver in the Note to Receiver field.
The user may provide the header and the line level attachments
for approver, supplier, receiver and the Payables Section.
In Contract Term Region, you can attach the contract if you have
any with the supplier by clicking on the Author Contract Term (B).
Save the work.

8.2.4. Shipments
Use the Shipments window to enter multiple shipments for

standard and planned purchase order lines and to edit shipments
that Purchasing automatically created for you in the auto created
screen. A purchase order shipment specifies the quantity, ship-to
organization and location, and date the supplier should deliver the
items on a purchase order line.
For entering the purchase order shipment information, navigate to
the Shipments window by selecting the Shipments button in the
Purchase Orders window.
The first alternative region in the Shipments window is the
Shipments alternative region. In addition to the enterable fields
discussed in the following steps, this region displays the UOM, the
Charge Account, the line Amount and a check box to indicate
whether funds have been reserved.
If a new shipment line is entered, Purchasing displays the next

sequential line number available. Enter the ship-to Organization.
Note: The organization cannot be updated once the work has been
saved if the shipment has distributions. To modify, you need to

delete the shipment row, save the record and then enter a fresh
shipment line.
Enter the Ship-To location for the shipment.
Enter the Quantity for the shipment. This value must be greater
than zero. The quantity on the Shipment line defaults from the
corresponding Purchase Order Line. If this quantity is decreased,
Purchasing automatically defaults the quantity ordered of the next
line to the total quantity that have not yet been placed on a
shipment line. The UOM is displayed next to the Quantity.
Enter the Promised By date when the requestor needs the item.
This date is printed on the purchase order. The default is from the
Purchase Order Preferences window.
Save the work.
8.2.4.1. To display and enter more shipment information
Select the More alternative region in the Purchase Order Shipments

window.
Enter the Receipt Close Tolerance percent for the shipments.
Purchasing automatically closes a shipment for receiving if it is
within the receiving closing tolerance at the receiving close point.
The receiving close point is set in the Purchasing Options window.
Enter the Invoice Close Tolerance percent for the shipments.
Purchasing automatically closes a shipment for invoicing if it is
within the invoicing closing tolerance at billing, when Payables
matches invoices to purchase orders.
Available Invoice Matching options:
Two-Way: Purchase order and invoice quantities must match
within tolerance. All service items and In-tangible items will
have to follow this matching level.
Three-Way: Purchase order, receipt and invoice quantities must
match within tolerance.
Four-Way: Purchase order, receipt, accepted and invoice
quantities must match within tolerance.
Select Accrue on Receipt to indicate that the items on this
purchase order line accrue on receipt. Both expense and Inventory
items are always accrued on receipt.
Save the work.

8.2.4.2. To display status information
Select the Status alternative region in the Purchase Order

Shipments window.
For each shipment, Purchasing displays the Status and the
Quantity Ordered, Received, Cancelled, and Billed.
8.2.4.3. To enter receiving control information
Select the Receiving Controls button to open the Receiving

Controls window. The receiving controls defaults from the item for
an Item based PO line's shipments. In case the item is either one
time (text item) or a service item, the receiving controls will
default from the PO options.
The receiving control of Warning will only provide the warning to
the user but he would be able to undertake the required action
irrespective of violation of the Date or the Quantity type
controls. In case of Reject control, the user will not be able to
perform any action if either of the mentioned controls is being
violated.

8.2.4.4. To enter purchase order distribution information
Use the purchase order Distributions window to enter distribution

information for purchase order shipments and to view distributions
that Purchasing has automatically created. Multiple distributions
can be entered per shipment line.
Navigate to the Distributions window by selecting the Distributions
button in the Shipments window. The Shipments window is
accessed from the Purchase Orders window.
Enter the line Number for the distribution line.
The destination type determines the final destination of the
purchased items. Choose one of the following options:
Expense - The goods are delivered to the requestor at an
expense location. The destination sub inventory is not
applicable. This will be used for all non-stock items and services
and any other item, which need not be tracked in Inventory
against this Purchase Order. All Capital items should have the
destination type set to EXPENSE.
Inventory - The goods are received into inventory upon delivery.
Enter the Requestor and Deliver To location for this distribution.
If the destination type is Inventory, the sub inventory also has to
be entered. This will be used for stock items and other items,

which needs to be stored in Inventory before being issued for
consumption.
Enter the Quantity of the purchase order shipment that is to be
charged to the Accounting Flex field. The default value comes from
the quantity entered in the Shipments window. If the default
quantity is decreased, Purchasing automatically defaults on the
next distribution line the total quantity not yet assigned to a
distribution line.
Enter the Charge Account. When navigating to this field or when
the document is saved after entering the Shipment information,
the system builds the charge account. Purchasing uses the Account
Generator function to automatically create the following accounts
for each distribution:
o Charge: the account to charge for the cost of this item
o Accrual: the AP accrual account
o Variance: the invoice price variance account
o Budget: the encumbrance budget account
The account code built by the system can be changed if the
destination type is Expense. The other codes are automatically
built and not changeable.
If the Purchase Order Line is of Fixed Assets, then the Charge
account has to be Asset Clearing Account.
The Reserved check box indicates whether the funds have been
successfully reserved for this purchase order distribution. The
distribution is reserved when the purchase order is approved. Any
purchase order distribution that has already been encumbered
cannot be changed.
8.2.4.5. To enter distribution detail information
Select the More alternative region.

The requisition line from where this PO is auto created would be
shown here. If the PO is not auto created, then the requisition
number can be entered here (please note that the requisition
number cannot be selected from LOV).
The online check box indicates whether this distribution is part of
an on-line requisition. If so, Purchasing displays the requisition
number and line number.
Purchasing displays the budget account, accrual account, and
variance account numbers supplied by Account Generator.

Requisition No. is to be
entered here
8.2.5. Currency Information
Use the currency window to enter and change currency information

for purchase orders.
For purchase orders, currency information can be changed until the
purchase order is approved or encumbered. Note that changing
the purchase order supplier to one that uses a different currency
overrides any information entered in this region.
8.2.5.1. To enter currency information
Navigate to the currency window by selecting the currency button

in the purchase orders, RFQs and quotations windows.
Purchasing displays the functional currency from the set of books,
which can accept or change the currency. If the currency is
changed, prices on existing lines are not converted to the new
currency.
A rate type can be entered only if the currency for this document is
different from the functional or base currency. In IBF context,
Corporate Rate Type will be followed as a group Policy.

8.2.6. Forwarding and Approving Standard Purchase Order
Navigate to the Approve Document window by selecting the

Approve button. The buyer will select the Submit for Approval
checkbox to automatically approve the document subject to his
own approval limits and automatically forward the documents to
the immediate superior for approval in case of insufficient approval
limits.
In case of the immediate approver not on duty, the Buyer or the
forwarder shall have to select the Forward To option and choose
the name of the person to whom the document has to be
forwarded to in the appropriate field.
The approvers will receive the documents electronically in their

Notification Box. (Navigation: Purchasing Responsibility > Notification
Summary).
8.3. Viewing Purchase Order Status
8.3.1. Overview
The status of the purchase orders submitted for approval can be

viewed from Purchase Order Summary form. If the approver has

sufficient approval authority the document status will be approved.
Else it would show a status In Process. The document will be available
with the next person in the approvers hierarchy .
8.3.2. Querying Purchase Order Status
Navigation: Purchasing Responsibility > Purchase Order > Purchase

Order Summary
In Purchase Order Summary form of base apps, one can view

Purchase Order status using various sorting criteria. User has to
select a criteria from the various options available in the Find
Purchase Orders form.
One can directly query to PO Headers / Lines / Shipments /

Distributions depending on the query criteria. On pressing the Find
button, the relevant window opens.
8.3.2.1.Folder Window
The window thus opened is a Folder Window i.e. the fields in this
window can be rearranged to suit ones needs in order not to scroll
right to see the details. Note the 2 statuses Close & Cancelled.

o Closure status indicates whether the Purchase Order is closed
for receiving & invoicing. If it is closed, then there cannot be any
receipts made or invoices booked against this PO.
o Cancelled status indicates whether the PO has been cancelled in
the header level.
8.3.2.2.View Action History
Navigation: From Purchase Order Summary > (T) Inquire > View
Action History
The View Action History would show the details regarding the
purchase users right from the creator to the final approver and date
on which a particular action has been done on the PO.
If in case a PO is not yet approved, then it can be known that on

whose notifications the In Process PO is lying. Also note that each of
these transactions is date tracked.
8.3.2.3.View PO Summary Lines
Navigation: From Purchase Order Headers Summary > (B) Lines

Here the details of the PO lines can be seen. In line level also, there
are 2 statuses Cancelled & Closure, which are explained above. Also
note that this is also a folder window.
8.3.2.4.View PO Shipments Summary
Navigation: From Purchase Order Lines Summary > (B) Shipments
Here the details regarding quantities due, received, accepted,

rejected, billed & cancelled can be seen.

9. Notifications and Document Approvals
9.1. Overview
Oracle Purchasing will automatically forward an appropriate

notification to the approval authorities whenever a purchasing
document is forwarded to them for approval. Similarly, the
Document Owner (the buyer or requestor) will also receive
notifications when the document they submitted for approval
has been approved or rejected by the approver.
Additionally, notifications are also forwarded for various events
such as expiry of an Agreement, Quotation, RFQ etc, which may
require further action, by the Buyer.
These Notifications can be reviewed when one logs into the
Oracle Purchasing using Self Service or using Notification
Summary menu. Using this menu, open the Notifications Form
and query for all open notifications, which requires further
action and also to respond to the notifications forwarded to you.
The following information will be displayed in the Notification

Summary form.
The priority and the due date for action.
Notification Subject: For Purchase Orders, Requisitions and
Releases, this can be Awaiting your approval, On Hold, Rejected
by approver, or requires approval or Reminders. For Purchase
Orders and Releases, this can also be Acceptance past due and
requires Reapproval. For Requisitions, this can be returned by

buyer. For RFQs, this can be Active with no close date,
Approaching close date, or requires completion. For Quotations,
this can be Active with no expiration date, approaching
expiration, or requires completion.
The subject will give information on the following
Message of Notification (Awaiting approval, Approved etc.)
Document Number
Currency
Amount
The From person
Note/Comments
Status
In the Notification Details Screen, there is an explanation of the
notification condition and suggested actions you can take for the
selected document. It will also provide you information as to the
items being ordered and quantity and price.
Take further action against the notification, using the Respond
Button. The approval action could be any of the following
Approve (Just to approve the document)
Approve and Forward (To approve and also get a confirmation
from another person)
Forward (To forward the document to someone else)
Reject (To reject the document. If a document is rejected, it's
automatically forwarded to the Owner)
In case of Forward and Approve & Forward, enter the Employee
name of the person to whom the document has to be forwarded.
In case of notifications providing information only and not
requiring any action (such as your document is Rejected etc.),
Select OK to acknowledge the notification.

10. Copying Purchase Orders
You can copy the following purchase order types from one document
to the other:
From To
Standard purchase order Standard purchase order
Blanket purchase
Blanket purchase agreement
agreement
Bid quotation (Bid Standard or planned
quotation class) purchase order
Catalog or Standard
quotation (Catalog Blanket purchase agreement
quotation class)
For example, if you want to renew a blanket purchase agreement that

contains hundreds of lines, you can copy the previous agreement to a
new agreement and change the effective dates.
To copy documents:
1. Query the document you want to copy from the Purchase Orders
Purchase Order Summary, or Quotations windows.
2. With the document selected, choose Copy Document from the
Tools menu.
3. Select an eligible To Document Type. You can change the To
Document Type only if youre copying from a Bid class quotation.
4. Select other options if needed.
5. Choose OK.
6. Modify the document if you need to.
7. Save and approve the document.
Copy Attachments: Check this box to copy an attachment from any

level of the document.

Purchasing creates and displays the new document. The document is
an exact copy of the original except for the Promised By and Need By
dates; if these dates are past dates, they change to todays.

If information in the document you have just copied is invalid or
outdated - for example, if a supplier or account is inactive or invalid -
a message window appears after you choose Approve. Use this
window to help you identify and correct invalid or outdated fields in
the new document you are creating. You cannot approve the
document until you update these fields appropriately.

11. Purchase Document Control
11.1. Overview
Document control feature will be used to control the status of

planned and standard purchase orders, blanket agreements and
releases at various stages of the procurement cycle. Following are the
major control requirements of the purchasing documents.
Terminate fully a partially received purchase order, blanket
agreements and releases.
Undertaking control actions so that no further internal activity is
allowed on completed orders.
Temporarily freeze or unfreeze documents.
Place documents on hold to prevent printing, receiving,
invoicing and approval until the hold is removed.
11.2. Document Control Options

Freeze: Freezing of a purchase order document prevents
modifications or incorporation of any changes to it. A frozen
purchase order can be unfrozen any time if any changes need to
be incorporated.
Cancel: A Purchase Order/Line document can be cancelled any
time to the extent of unfulfilled portion. Cancellation of a
purchasing document releases any commitments /
encumbrances created for the document. This cancellation can
be done for the whole document, specific lines or shipments.
The cancellation action is not reversible.
Hold: After approval of a purchase order document, if for some
reason subsequent activities such as receiving of goods or
services and invoice matching need to be prevented, then the
concerned purchase order document should be put on Hold. The
hold can be removed on need basis. However, placing a
document on hold will change the approval status of the
document and the document will need to go through the
approval hierarchy for re-approval after removal of hold.
Final Close: If no further receiving, returning or invoicing activity
is going to happen on a Purchase Order, the document can be
final closed. When a document is finally closed, all pending
commitments / encumbrances against the document are
liquidated. Final Closing will have to be manually performed on
Purchase Orders.
Close For Receiving: You can close for receiving at the header,
line and shipment levels. Note that if you close for receiving a

purchase order header that is currently open, Purchasing sets
the status of all purchase order shipments to Closed for
Receiving, but the purchase order lines and header remain open.
Close For Invoicing: You can close for invoicing at the header,
line, and shipment levels. Note that if you close for invoicing a
purchase order header that is currently open, Purchasing sets
the status of all purchase order shipments to Closed for
Invoicing, but the purchase order lines and header remain open.
This status will not prevent you from matching an invoice to the
purchase order or to the receipt.
11.3. Exercising control options

The document control options can be exercised through the
Purchase Order Summary form only. The deletion of a Purchase
Order, Line, Shipment or Distribution can be done from the entry
form itself if the document has not gone through the approval
action. If a record is not saved, then changes could be done by just
erasing (clear record) the concerned record.
In the Purchase Order Summary form, find the Purchase Order /
Release which needs to be controlled.
Navigate to the appropriate zone viz. Headers, Line, Shipment or
Distribution which needs to be changed.
Choose Control option under the Tool Menu. A list of valid control
actions will be available for selection. Select the appropriate
control option and enter the reason for the action in the comments
field.

11.4. Document Management
Use the Forward Documents window to forward all or selected

documents awaiting approval from one approver to a new
approver. This lets you keep your documents moving when the
original approver of a document is unavailable.
Navigation: Purchasing Responsibility > Management > Forward

Documents
Select Forward Documents from the menu. Purchasing displays the

Enter Approver modal window, where you must provide the name
of the original Approver and select OK to display the Forward
Documents window.
For each document available for forwarding, Purchasing displays
the Forward Date, document Type, document Number, Currency,
Amount, Status, From person, Note, document Description,
document Owner, and Creation Date.
Select the documents you want to forward.
Here the Action History can also be seen from Tools menu.
Enter the New Approver to whom you want to forward the selected
documents.
Save your work.

12. Purchase Order Amendments
12.1. Overview
Purchasing amendments are undertaken for modifying an approved

purchasing document viz. standard purchase order, blanket purchase
agreement etc. Following could be the various reasons for
undertaking amendments to the purchasing documents.
Modification of item specifications by the user.
Making changes to the required quantity
Changes in the delivery schedule of the items
Price changes etc.
Based on the document archive options (whether on Approval or after

Printing) which control the document version numbers, appropriate
version number change will be effected automatically by the system.
12.2. Document Revision Numbering

Multiple revisions of purchasing documents (planned and standard
purchase orders and blanket and contract purchase agreements) can
be created. All revisions begin at 0, and Purchasing increments this
revision number by 1 when changes are made to controlled
information and the current revision number is equal to the archived
number.
Such version change would be effected whenever a change is made

to any of the critical fields in the Purchase Order or Release after
archival and the document status will change from Approved to
Requires Re-approval. After the changes are performed, the
document will have to be resubmitted for approval.
Not all amendments would result in a version change. For a detailed

list of amendments that would result in change of version, see the
table below:
12.3. Document Revision Rules
The following table describes the additions and changes that cause
Purchasing to increment document revision numbers:
Relea
HEADER SPO PPO BPA CPA
se
Buyer * * * * *

Contact * * * *
Confirm * * * *
Ship-To * * * *
Bill-To * * * *
Payment Terms * * * *
Ship Via * * * *
FOB * * * *
Freight Terms * * * *
Brief Note to
* * * *
Supplier
Acceptance
* * * * *
Required
Acceptance Due
* * * * *
Date
Amount Limit * * *
Effective Date * * *
Expiration Date * * *
Cancel Flag * * * *
Amount Agreed * *
Release
*
Number
Release Date *
Relea
LINE SPO PPO BPA CPA
se
Line Number * * *
Unit Price * * *
Item * * *
Item Revision * * *
Item
* * *
Description
Payment Terms * * *
Quantity * * *
Unit of Measure * * *
Source
Quotation * * *
Header
Source
* * *
Quotation Line
Hazard Class * * *
Contract
* * *
Number

Supplier Item
* * *
Number
Brief Note to
* * *
Supplier
UN Number * * *
Price Type * * *
Quantity Agreed *
Amount Agreed *
PRICE BREAKS
Ship-To Location *
Quantity *
Break Price *
SHIPMENT
Shipment
* * * *
Number
Ship-To * * * *
Quantity * * * *
Promise Date * * * *
Need-By Date * * * *
Last
Acceptance * * * *
Date
Taxable * * * *
Shipment
*
Price
DISTRIBUTION
Quantity * * * *
Requestor * * * *
Charge
* * *
Account
12.4. Pre-Requisites for control

Prior to making the amendments in the purchasing documents,
buyer will interact with the vendor for his concurrence depending
upon the nature of the amendment to be made. This will facilitate
better co-ordination of procurement activities.
The amendments to a Purchase Order or any other purchasing
document should be initiated by a valid request for amendment
that should be authorised by an appropriate authority.
While forwarding the amended document to the approval
authority, the buyer should enter the nature of amendment in the
Note to the Approver form. However, this control would need to be
manually exercised.
12.5. Standard conditions when an amendment can be

performed
12.5.1. Quantity Amendments
Quantity can be amended (increased or reduced) at any time in

any of the Purchasing Document viz.. Purchase Order or Release.
However, where goods have already been received, the quantity
can not be reduced below the received quantity.
12.5.2. Price Amendments
Prices on the Standard Purchase Order and a Planned Purchase

Order can be amended until a receipt is created against the line
item. No price amendment will be possible after the partial or full
receipt of goods against the Order/Release.
Prices on the Blanket Agreement can be amended anytime based
on the agreement. However this will be effective only for the
subsequent releases created from the system.
Where a price revision is being effected on an existing agreement
based on negotiations with the supplier, New price line could be
entered on the agreements and the previous line can be defined
with an Expiry Date. However, the new price line can not be
defined with an effective start date. Hence both the lines will be
available on the system during the transition period which needs
to be manually controlled.
Prices on the Scheduled Release and Blanket Release can not be
amended unless permitted by the parent document viz.. Planned

Purchase Order and Blanket Agreement. This permission is granted
by enabling the check-box Allow Price Override where upper price
limit could also be set. Even if permitted, the changes can be
effected only until a goods receipt is recorded.
12.5.3. Other amendments
Other amendments such as change in delivery terms or payment

terms can be performed at any time. The receipt does not restrict
these. However these changes would apply only for the subsequent
activities and are not retroactive.
12.6. Amendment Process
To incorporate any of the above changes to the purchasing document

the following steps have to be performed.
1. Record the desired change subject to the conditions stated
earlier.
2. Re-reserve and resubmit for approval.
12.7. View Revisions
All the PO revisions can be view through the PO Change History

menu .
Navigation: Purchasing Responsibility > Purchase Orders > PO

Change History

ON pressing the link under Compare to Original PO another
page opens with the details of the changes.

13. Master Data Creation and Maintenance
The key Master data that will be relevant for Purchasing are Item
Master and Supplier Master. The Item Master definition process has
been explained as part of the Inventory To-Be document. This process
will be applicable to both the Discrete items, and also Services.
The Supplier Master data will be maintained by Accounts payable.

Supplier master definition process has been explained as part of
Accounts payable To-Be document. Supplier lists, ASL creation and
maintenance process is explained in the subsequent pages.

14. Supplier Lists
14.1. Overview
A Supplier list contains the qualified vendors from whom the
company would be frequently procuring various items. Multiple
Suppliers lists could be created by grouping vendors by the range
of items they supply. This list can be used in RFQs for such items
where the suppliers could be easily identified from the list. The
supplier lists can be copied onto the RFQ supplier list at the time of
creating the RFQ.
14.2. To define supplier lists

Navigate to the Supplier Lists window from the menu.
Enter the Supplier List Name of the list you want to create. Each
supplier list name must be unique.
Enter a Description for your supplier list.
Enter the Inactive Date for the list
Enter the Supplier name you want to place on the supplier list. The
list of values displays the supplier name, number, On Hold,
Taxpayer ID, and VAT number. When you copy a supplier list onto
your RFQ supplier list, Purchasing copies every unique combination
of supplier and supplier site that does not already appear on the
current RFQ supplier list.
Enter the supplier Site you want to place on the supplier list.
Purchasing lets you send a request for quotation to different sites
of a same supplier. You cannot enter the same combination of
supplier and supplier site twice on the same supplier list.
Enter the name of the Contact at this supplier site.
Navigation: Oracle Purchasing > Supply Base > Supplier Lists

15. Controlling Purchasing Periods
15.1. Overview
Oracle Purchasing periods have to be opened and closed to enable
or disable purchasing transactions during that period.
The Periodic processes involve confirmation of completion of
various activities by the related departments such as the Stores
and the Accounts Payable.
Accrual generation and the other periodic reports generation would
also form part of the periodic activities
In the case of month closing, on completion of the periodic
activities, the Purchasing Administrator will close the previous
period and open the new period.
15.2. Controlling Periods

Control Purchasing Periods window should be used to control the
purchasing periods defined in the Accounting Calendar. Purchasing
periods is used to create journal entries in general ledger system.
Purchasing allows creating journal entries only for transactions
entered in an open purchasing period. To Control Purchasing
Period:
In Control Purchasing Period Menu: Purchasing displays the Period
Status, Period Number, Fiscal Year, Period Name, Begin Date, and
End Date for each existing period.
In the Period Status field, following options are available:
Closed This option is for closing purchasing period. When a
purchasing period is closed, Purchasing does not allow further
accruals during this period. Purchasing reverses the status of
accrued purchase order lines so that they can be accrued in the
next period if required.
Future - This option is for opening purchase period in the future.
This option is available only when the current status is Never
Opened.
Never Opened - Purchasing displays this default status if the
period is not opened in the past.
Open - This option is for opening purchasing period.
Permanently Closed - This option should be used for
permanently closing a period,which is irreversible.
Navigation: Purchasing Responsibility > Setup > Financials >

Accounting > Control Purchasing Periods

16. Purchasing Period Closing
A step by step guide to Period closing activities in Oracle Purchasing

is given below.
Note: Without fail please follow the same sequence as listed below
for closing a purchase period.
1. Ensuring that entry of all receiving transactions for

goods supplied or Services rendered during the Period
are completed.
Note: Receiving Transactions shall not be there for receipts or

shipments with Routing as Direct Delivery
Scenario: To Complete all pending Receiving transactions
Navigation: Receiving -> Receiving transactions
Select the following:
Region Field Values

Transaction

Region Field Values
Details
Transaction Give the Starting and
Dates ending date of purchase
period
Press Find (B)
This Query should return no lines.
If any lines appear, complete all the transactions activities pertaining

to those lines and ensure that the query fetches no lines.
2. Follow-up with Stores Department, Financial Department

and get confirmation that inventory period is closed.
3. Follow-up with Payables Department and get

confirmation that Payables period is closed.
4. Follow-up/Inform the Finance Department and get

confirmation that Journal Import in General Ledger has
been run to import the receipt accruals journals from
Purchasing into General Ledger.
5. Close the purchasing period for your receipt accruals.

When you close a purchasing period, purchasing
automatically unmarks all the receipts you previously
accrued to make sure you can accrue these receipts
again if they are still uninvoiced in the next period.
Scenario: Closing Purchase Period
Navigation: Setup > Financials > Accounting > Control Purchasing

Periods

Open accounting periods to record purchasing activity. Oracle
Purchasing application lets you create journal entries only for
transactions you enter in an open purchasing period. Purchasing
verifies that the GL Dates you provide on purchase order distributions
and requisition distributions are within an open purchasing period.
Purchasing displays the Period Status, Period Number, Fiscal Year,

Period Name, Begin Date, and End Date for each existing period.
Select the appropriate Period Status field, from the following available
options:
Closed This option is for closing purchasing period. When a

purchasing period is closed, Purchasing does not allow further
accruals during this period. Purchasing reverses the status of
accrued purchase order lines so that they can be accrued in the next
period if required.
Future - This option is for opening purchase period in the future.

This option is available only when the current status is Never Opened.
Never Opened - Purchasing displays this default status if the period

is not opened in the past.
Open - This option is for opening purchasing period.

Permanently Closed - This option should be used for permanently
closing a period, which is irreversible.
Save
6. Make sure the Close Purchasing Periods process

completes before you open the next period. When you
close a period in the Open and Close Periods window and
then save, the Close Purchasing Periods process runs
automatically. Make sure this process completes before
opening the next period.

17. Standard Reports in Oracle Purchasing
17.1. Accrual Reconciliation Report

The accrual reconciliation report can be used to anlayze the balance
of the Accounts Payable (A/P) accrual accounts. After you have
entered your receipt transactions and matched your invoices, you
can run the report for any transaction date range and identify any
differences between your PO Receipts and A/P Invoices. This report
also displays any miscellaneous transactions recorded in error to your
accrual accounts. These miscellaneous transactions or transactions
unrelated to purchase order receipts may be from Payables,
Inventory, or Work in Process (depending on your installation). After
you have researched the reported accrual balances, you can use the
Accrual WriteOffs window to indicate which entries you wish to
remove and write off from this report. And, after you have written off
these entries, you can use the Accrual WriteOff Report as supporting
detail for your manual journal entry.
17.2. Accrual Write Off Report

The Accrual WriteOff Report to provide supporting detail for your
writeoff journal entries. The process is as follows. First, you analyze
the Accrual Reconciliation Report for transactions that you should
expense out of the accrual accounts. After you have researched the
reported accrual balances, you then use the Accrual WriteOff
window to indicate which entries you wish to remove and write off
from this report. And, after you have written off these entries, you
use the Accrual WriteOff Report as supporting detail for your manual
journal entry.
17.3. Blanket and Planned PO Status Report

The Blanket and Planned PO Status report can be used to review
purchase order transactions for items you buy, using blanket
purchase agreements and planned purchase orders. For each blanket
purchase agreement and planned purchase order you create,
Purchasing provides you with the detail of the releases you created
against these orders. Purchasing prints the blanket agreement or
planned purchase order header information, if no release exists.
17.4. Buyers Requisition Action Required Report

The Buyers Requisition Action Required Report identifies all or
specific approved requisition lines that buyers have not placed on
purchase orders. Later, you can use the Auto create Documents
window to modify a requisition line, return a requisition, or place a

requisition line onto a purchase order. The report includes suggested
document types Blanket, Agreement, Catalog and Quotation.
17.5. Cancelled Purchase Orders Report

This report can be used to review information on cancelled purchase
orders.
17.6. Cancelled Requisitions Report

This report can be used to review information on cancelled
requisitions.
17.7. Invoice Price Variance Report

The Invoice Price Variance Report shows the variance between the
invoice price and the purchase price for all inventory and work in
process related invoice distributions. Payables records invoice price
variances when the invoices are matched, approved, and posted.
17.8. Invoice Price Variance by Supplier Report

The Invoice Price Variance Report shows the variance between the
invoice price and the purchase price for all inventory and work in
process related invoice distributions. Payables records invoice price
variances when the invoices are matched, approved, and posted.
17.9. Item Detail Listing

The Item Detail Listing shows detail information for items defined as
Purchasing Items in the Item window as well as unit of measure
conversion, notes, manufacturer part numbers, and dispositions
assigned to the item. Purchasing lets you isolate items by limiting the
items, categories, or buyer you want to review. For example, if your
categories reflect purchased commodities, you can use the listing to
review what manufactured items are for a commodity.
17.10. Open Purchase Order Report (By Buyer)

The Open Purchase Orders Report (by Buyer) lists all or specific open
purchase orders that relate to buyers. Purchasing lets you specify the
open purchase orders you want to review. An open purchase order is
one that references an item that your supplier has not yet fully billed
or received. The report excludes closed, final closed, and cancelled
orders.
17.11. Printed Change Order Report

The printed change order report prints changed purchase orders. The
change purchase orders are the hard copy document you print on a
preprinted form and distribute through the mail or fax to confirm
changed orders you have requested or confirmed with your suppliers.

Purchasing provides a default format for the preprinted form. Contact
your Oracle Consultant for information regarding the forms.
17.12. Printed Purchase Order Report

The Printed Purchase Order Report (Landscape) prints your purchase
orders. Purchasing lets you specify the purchase orders you want to
review or print on your preprinted form. The printed purchase orders
are the hard copy document you print on a preprinted form and
distribute through the mail or fax to confirm orders you have
requested or confirmed with your suppliers. Purchasing provides a
default landscape format for the preprinted form. Contact your Oracle
Consultant for information regarding the forms.
17.13. Printed Requisitions Report

The Printed Requisitions Report prints the requisitions, which have
the following status: Approved, Rejected, In Process, PreApproved,
and Returned. The report does not include requisitions with status
Incomplete or cancelled. You can circulate the printed requisitions for
signature approvals and notes.
17.14. Purchase Agreement Audit Report

You can use this report to review purchase order transactions for
items you normally buy using blanket purchase agreements.
Purchasing lets you determine if you are efficiently using the blanket
purchase agreements you negotiate with your suppliers. For each
item you buy using blanket purchase agreements, Purchasing
provides you with the detail of the existing purchase orders for this
item and the detail of the agreement lines blanket or standard
you created for this item. Purchasing shows you when you purchased
items using a standard purchase order where you could have used a
blanket purchase agreement. The Opportunity Cost is calculated as
the sum of the amount of the purchase order subtracted from the
sum of the amount of the blankets.
17.15. Purchase Order Detail Report

The Purchase Order Detail Report lists all, specific standard, or
planned purchase orders. Purchasing displays the quantity you
ordered and received so you can monitor the status of your purchase
orders. You can also review the open purchase orders to determine
how much you still have to receive and how much your supplier has
already billed you.
17.16. Purchase Order Distribution Detail Report

The Purchase Order Distribution Detail Report shows account
distributions for a range of purchase orders. If you use Purchase

Order Encumbrance Control and you set the failure funds only report
option to Yes, Purchasing prints only those accounts that fail funds
reservation. The Quantity Ordered is the uncancelled shipment
quantity. For planned purchase order shipments, this quantity
excludes cancelled quantities and any scheduled release quantities
associated with the shipment.
17.17. Purchase Order and Releases Detail Report

The Purchase Order and Releases Detail Reports show detail
information for your blanket purchase agreements and planned
purchase orders. Purchasing displays the quantity that you ordered,
received, billed, and that is due to be received so you can monitor
the status of your purchase orders. You can review releases to
determine how much is remaining to be received and invoiced.
17.18. Purchase Requisition Status Report

The Purchase Requisition Status Report can be used to review the
approval status of the requisitions you create. By limiting the
approval status, you can use the report as a tool to plan and monitor
the buyer workload. You can also use the report to monitor
requisitions in the approval process or returned and requiring further
attention.
17.19. Purchase Summary Report by Category

The Purchase Summary Report by Category shows the amount of
orders you place with suppliers for a given category of item. Use the
report to monitor the purchase documents included in a range of
categories.
17.20. Purchasing Activity Register

The Purchasing Activity Register shows purchase order monetary
activity carried out for a time interval, such as a day or month. The
report excludes all fully cancelled purchasing documents. The report
includes blanket and contract purchase agreements and planned
purchase orders for reference. However, since these documents do
not represent actual purchase activity, their amounts are not shown
in the PO Amount and Functional Amount columns and are not
included in the Total amount.
17.21. Requisition Activity Register

The Requisition Activity Register shows requisition activity and
monetary values. Purchasing prints the requisitions in order of
creation date and prepared name.

17.22. Requisition Distribution Detail Report
The Requisition Distribution Detail Report lists requisitions,
distributions, and charge account information. You can also use the
report to review requisitions that failed funds reservation if you have
enabled encumbrance. Totals print only if encumbrance has been
enabled.
17.23. Supplier Price Performance Analysis Report

Use the Supplier Price Performance Analysis Report to compare the
price of an item from different suppliers.
17.24. Supplier Purchase Summary Report

The Supplier Purchase Summary report lists the numbers and amount
of orders you have placed with various suppliers during a particular
period. You can use this information to analyze and manage your
purchasing volume with your suppliers.
17.25. Supplier Quality Performance Analysis Report

The Supplier Quality Performance Analysis Report can be used to
review your suppliers quality performance. You can review supplier
quality performance for percents accepted, rejected, and returned.
You can use this report to identify suppliers with quality performance
issues.
17.26. Supplier Service Performance Analysis Report

The Supplier Service Performance Analysis Report lists late
shipments, early shipments, rejected shipments, and shipments to
wrong locations. You can use this report to derive a supplier service
penalty by multiplying the days variance quantity by a percentage of
the price.
17.27. Supplier Volume Analysis Report

The Supplier Volume Analysis Report shows the dollar value of items
you purchase from a supplier. The report prints the items that are
assigned sourcing rules. Use the report to compare your actual
purchase percentages with your sourcing percentage.
17.28. Suppliers on Hold Report

The Suppliers on Hold Report lists all suppliers placed on hold. This
report also prints all purchase orders you still have outstanding with
the suppliers on hold.
17.29. Uninvoiced Receipts Report

The Uninvoiced Receipts Report should be run before the Receipt Accrual Period
End process. With this report, you can review all or specific uninvoiced receipts for

both period end and online accruals. Uninvoiced receipts are goods and services you
have received that your supplier did not invoice yet. This report indicates exactly what
you have to accrue and for what amount, and helps you analyze your receipt accrual
entries. The accrual amount is the difference between the quantity received and the
quantity billed multiplied by the unit price of the item.

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TRAINING MANUAL

IBF E-Business Project Oracle EBS R12

Project Manager RRB

Process Owner IBF PS

Copy Name Location

Purchasing Training Manual IBF Page II

Purchasing Training Manual IBF Page II

2. ORACLE PURCHASING TRANSACTIONS - OVERVIEW..................................................3

Purchasing Training Manual IBF Page II

6. QUOTATION ANALYSIS AND APPROVAL....................................................................45

7. PURCHASE ORDERS OVERVIEW................................................................................48

8. STANDARD PURCHASE ORDERS (SPO).....................................................................50

Purchasing Training Manual IBF Page II

9. NOTIFICATIONS AND DOCUMENT APPROVALS..........................................................67

10. COPYING PURCHASE ORDERS...............................................................................69

11. PURCHASE DOCUMENT CONTROL.........................................................................72

12. PURCHASE ORDER AMENDMENTS.........................................................................75

Purchasing Training Manual IBF Page II

13. MASTER DATA CREATION AND MAINTENANCE....................................................80

14. SUPPLIER LISTS.....................................................................................................81

15. CONTROLLING PURCHASING PERIODS..................................................................82

16. PURCHASING PERIOD CLOSING.............................................................................84

Purchasing Training Manual IBF Page II

Purchasing Training Manual IBF Page II

This document contains a brief overview of how various tasks are to

The specific functionalities as may be relevant to the operations of

This document covers the various Procurement transactions carried

In addition, this document also covers common period end &

This document covers various aspects such as

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List of Common Processes

1. Supplier List (covered in Accounts Payable SOP)

Maintenance Activity by Purchasing Administrator

Below is the list of the maintenance Activities for Purchasing

1. Definition of Buyers who are authorized to create Purchase Orders.

All the above transactions / processes are documented in the

This document contains a brief overview of how various tasks are to

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This section will be covering the System Configuration and the

The core purchasing transactions are:

2.3. Configuration Activities

This consists of HRMS related set up, Category Set-up (covered in

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Purchase Requisition is the document by which the Purchasing

1. Item Code and / or Description of the Item to be procured

3.2. Creation of Purchase Requisition

Navigation Path: Requisitions > Requisitions

In the manual creation of Purchase Requisition Process, Purchase

During the manual creation of Purchase Requisitions, the following

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Select the requisition type as Purchase Requisition . This will

Requisition number will be numeric and will be automatically

3.2.2. Requisition Lines

Navigate to the Requisition Line Region

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If the source detail doesnt default, click on the catalog button.

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3.2.4. Source Details of the Line (Optional)

Navigate to the Source Details alternative region at the line level.

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3.2.5. Line Details (Optional)

3.2.7. Shipment Information (Mandatory)

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3.2.8. Enter the Requisition Distributions