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FAQ - Purchase Order Organization Setup [ID 1263565.1]

Modified 04-NOV-2010 Type FAQ Status PUBLISHED

In this Document
Purpose
Questions and Answers
How to define a Business Group?
What is the setup considered before defining the Purchasing Inventory Organization (Shared)?
Can we change the address style in Location Form after new location is created and saved ?
How to avoid “Destination location requires customer association" Message, While trying to enter an internal
requisition in Enter Requisitions form?

Applies to:

Oracle Purchasing - Version: 11.5.1 and later [Release: 11.5 and later ]
Information in this document applies to any platform.

Purpose
This FAQ document identifies the most frequently reported how-to questions relating to the Purchase Order
Organization Setup .

Questions and Answers

How to define a Business Group?

Navigate to: Setup > Organizations > Financial Options > Human Resources tab.
Use this region to enter the options and defaults for entering employee information in the Enter Person window.

1. Enter the name of the business group to be associated with Purchasing. If Purchasing is used jointly with
Oracle Human Resources, reference the business group that is defined in Oracle Human Resources. If
Purchasing is used without Human Resources, use the default value. The default for this field is the Human
Resources default of Setup Business Group. The business group determines which employees can be used in
Purchasing. In Purchasing, only the employees in this business group can be seen.

2. Select the default Expense Reimbursement Address to be used on payments for employee expense
reports: Home or Office. The system uses this default for each new employee entered. This default can be
overridden during employee entry or expense report entry.

3. Check “Use Approval Hierarchies” to use positions and position hierarchies to determine approval paths for
documents within Purchasing. Disable this option of approval paths are based on the supervisor structure.

4. Set Employee Numbering Method to determine if employee numbers are entered manually or system
generated (sequential employee numbers). A value cannot be entered in this field if Oracle Human Resources
or Oracle Payroll is installed. The numbering method can be changed at any time.
Automatic - The system automatically assigns a unique sequential number to each employee when a new
employee is entered.
Manual - Enter the employee number when a new employee is entered.

Note: The system automatically enters the employee's National Identifier Number as the employee number.
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For example, a Social Security number for a United States employee.

Attention: Be careful if switching from manual to automatic entry, the employee number must be unique.
When using manual entry, any number can be assigned and in any order. If switching to automatic after having
entered employee numbers manually, the system may try to assign a number that has already been
assigned. If switching from manual to automatic entry, make sure the next available number for automatic
entry is larger than the largest number already recorded.

5. If the Automatic Employee Numbering method is selected, enter the starting value the system will use for
generating unique sequential employee numbers.
After entering a number and saving the changes, the system displays the number that it will assign to the next
new employee entered.
Reference: Oracle Purchasing Online Help, "Human Resources Financial Options"

What is the setup considered before defining the Purchasing Inventory Organization (Shared)?

Setup steps for that application before you define your organization,

1.1-You need to perform your System’s Administrator setup, including any security and printer setups.

1.2-You need to define any Key and Descriptive flexfields for your application.
System administrator responsibility=> Application => Flexfield.

2- You need to setup at least one set of books, a calendar, currency, and currency rates.
If using the approval process, you will have to setup certain HR flexfields, such as positions and jobs.
HR comes delivered with a default Business Group. If you are intending to use HR only where it pertains to
Purchasing, you may utilize this default Business Group, or create one of your own.
The documentation on setting up Business Groups and Organizations can be found in detail in the HR User’s
Guide.

3-You needs to define operating units and assign them to legal entities. Your responsibility determines which
operating units you access when you use Oracle Applications. When you use Oracle Payables, Receivables,
Order Entry/Shipping, Purchasing, Projects and Sales Compensation, you see information that is relevant to
your operating unit. You can sell from one legal entity, ship from another. Use the ‘Choose Organization
Window’ to choose Inventory Organization. After you choose your responsibility to perform materials
management using Oracle WIP, Bill of Materials, Master Scheduler, Purchasing, you must use the ‘Choose
Organization’ window to pick an inventory organization.
Your purchase order operating unit and receiving inventory organization must share the same set of books to
receive against a purchase order. (11.0.3 and below).
In future release you will be able to receive to inventory organizations that post to a different set of books from
the purchase order creation operating unit.

Can we change the address style in Location Form after new location is created and saved ?

For example using the following navigation,

Responsibility: Purchasing
Navigate to: Setup -> Organizations -> Locations
Query ->Enter
Name: SJ%
Query -> Run
Location: SJManufacturing
Tab -> Address Details
Find Address Style filed is Disabled, and cannot be changed.

As per the intended functionality, it is not available to change a Disabled field.

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How to avoid “Destination location requires customer association" Message, While trying to
enter an internal requisition in Enter Requisitions form?

(11.5.4) apps version

The issue dealing with the message "DESTINATION LOCATION REQUIRES CUSTOMER ASSOCIATION" in the
Enter Requisition screen is alleviated by the following steps as excerpted from BUG 691966:

" This message coming up at this time is not a bug. This is happening at the when-validate-item trigger of the item
number. Normally the deliver to location is also automatically defaulted when there is a location tied to that
employee/requestor. In this clients scenario, the requestor is not tied to a location and hence the location field is left
blank. If the item is internal orders enabled only item, the system will default source_type as INVENTORY and for
any INVENTORY sourced line, you need to have a customer associated with the location. This is more of a warning
telling the user that they must have to change the location or change the destination type to SUPPLIER. The user
has two options to avoid this warning coming up. This comes up only when the system is trying to default the
source_TYPE as Inventory.

1. They could set the purchaseable attribute also for the item to 'Y'. This way if the requisition type is PURCHASE
REQUISITION , the system will default the source type to SUPPLIER and then they can change the location and also
change the destination type as INVENTORY.

2. They could set the purchaseable attribute also for the item to 'Y'. Set the preference for the source type to be
'SUPPLIER' and still create a 'INTERNAl REQUISITION'. This will force the system to default the value of SUPPLIER
to the source type field. so the message will not appear now and will come up only when they change the destination
or the location. Hence closing as not a bug."

An enhancement request Bug 789407 was logged to prevent this confusing message from appearing.

Related

Products

Oracle E-Business Suite > Procurement > Procurement > Oracle Purchasing

Keywords

ORGANIZATION; DESTINATION; BUSINESS GROUPS; PURCHASE ORDER; INVENTORY ORGANIZATION;

FINANCIAL OPTIONS; OPERATING UNIT; SETUP ORGANIZATION

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