Approved Supplier List,

Sourcing rules and

Supplier Merge:

Presented by:
Akash Radia
Harshrajsinh Jhala
Manthan Desai
Maulik padh

Agenda:

Basic concepts
Automatic Sourcing
Approved Supplier List
Sourcing Rules
Test Case Scenarios
Summary

Concepts:
Several items used for different
purposes are defined in item master.
Similarly there are various suppliers
who supply particular items to an
organization.
Depending upon policies of an
organization, it would like to restrict
only a few suppliers to provide them
a few particular items. These are the
approved suppliers and list is called

Importance of approved
suppliers:
Proactive quality checks
Customizations specific
Industry standards, Government
norms and client conditions.
Strategic alliances, Trade secrets.
Reputation.

Automatic Sourcing:
Navigation:
System Administrator > Profile >
System
PO: Automatic Document Sourcing
Yes

No

Sourcing document and

pricing information for
an item will be
automatically defaulted
from the most recently
created document.

Information will come

from ASL window, where
you must specify which
source documents to
use.

Implications:
A requisition with a quotation, CPA or
global agreement as a source
document becomes a Standard
Purchase Order.
A requisition with Blanket Purchase
Agreement as source document
becomes a release.

ASL form:
Type: Item/category.
Business:
Direct/Manufacturer/Distributor
Status:
Approved/Debarred/New/Review
Control: Allow/prevent the rule.

Attributes:
Global: yes/no
Source documents:
BPA/CPA/Quotation
Release method:
Automatic/Automatic, Review/Using
Autocreate.

Sourcing Rules:
Navigation:
Purchasing responsibility > Supply
Base > Sourcing Rule.
Sourcing rules are used to specify
how the items will be replenished in
an organization.
Can be defined at I/O level as well as
all org. level.

Sourcing rule form:

 Allocation % : It includes number of

planned orders issued to the part for
entire planning horizon. Your total
cannot exceed 100%.
Planning active: If allocation % for all
shipping organization at a given rank
and effective date equals 100,
planning active is checked.
Rank: It suggests the precedence for
different shipping organization in
case the allocation % are same.

Assigning Sourcing rules:

 Levels: An item across all org./ An

item in an I/O, all items in an I/O,
categories of items in an I/O, all
items in all org.
Navigation: Purchasing > Supply
base > Assign Sourcing rule.

Profile Options to be
verified:
MRP: Default Sourcing Assignment
Set
PO: Automatic Document Sourcing
PO: Allow auto-generate sourcing
rules
PO: Allow autocreation of Oracle
sourcing documents.

CASE SCENARIO 1:
Release generation when:
PO: Automatic document sourcing: set
to yes & Release method specified as
Automatic release.

Case Scenario 2:
Release generation when:
PO: Automatic document sourcing: set
to yes & Release method specified as
Automatic release/Review.

Case Scenario 3:
To observe the impact of different
statuses of Approved Supplier List.

Case Scenario 4:
To observe the priority in the process
of selecting the supplier.

Summary & Findings:

Thank you