Purchase Crisp

[senthilm.apps]

Hi Friends

here i have copied the purchase module crisp

Regards
Senthil.M


Preparation guide for Purchasing

PO module is OU specific. It is sourcing of goods & services

Defaulting hierarchy :
1. Financial options
2. Purchase options / Receiving options / Payables
3. Supplier
4. Supplier site
5. PO/req preferences (tools -> preferences), void once you come out of oracle

Procure to Pay life cycle :

1. Sourcing
- Request for quote
- Supplier selection
- Contract negotiation and awards
- Catalog content management
2. Ordering
- Requisition and PO generation
- PO management and fulfillment
- Payment
3. Reporting and analysis
- Supplier performance
- Commodity analysis
- Internal compliance
- Robust intelligent gathering
- Decision support
- Process functionality

Requisition(demand from the user) -> RFQ -> Quotation -> Agreement -> PO/release(order) -> Receipt(receive) -> Payment(pay)

PO placement by the buying Org
PO execution by the supplying Org

Req.---->Req. Pool ---->
----> Bid RFQ ----> Bid quote -----> SPO / PPO ----> SPO / PPO
----> standard/catalog RFQ ----> standard/catalog quote ---> BPA ---> BPA / standard / catalog RFQ


Supplier Item catalog :
Input : negotiated purchases (standard catalog -> quote approval)
Sourcing rule, Requisition template, Prior purchases
Output : Requisition, PO

Document type : (14 documents)
1.Purchase requisition (approval required)
2.Internal requisition (approval required)
3.Request for quotation (RFQ)
(1) Standard RFQ (2) Catalog RFQ (3) Bid RFQ
4.Quotation (approval is optional)
(1) Standard (2) Catalog (3) Bid
5.Purchase order
(1) Standard PO (2) Planned PO (3) BPA
(4) CPA (5) Blanket release (6) Planned release

Document approval :
1.DT - Document type
2.AG ? Approval Group
3.AA ? Approval Assignment


Document type :
Navigation : Purchasing(N) -> setup -> purchasing -> document types
It is OU specific and is used to define access, security, and control specifications for all Purchasing documents. New document types can't be entered except for RFQs and quotations.
DT has to be created for all the 14 documents (requisition, PO, RFQ & quotations) and has four zones,


1.owner /approvar setting, 2. security 3. routeing 4. workflow
Approval transaction Type ? should be blank for requisition
Security level : Public / private / purchasing / Hierarchy
Access level : Full / Modify / View only
Forward method : direct / hierarchy
Archieve on : approve / communicate

BPA/CPA/PPO/SPO/BR/SR
Approval workflow : PO approval
Workflow start-up process : PO approval top process
Requisition :
Approval workflow : PO Requisition Approval
Workflow start-up process : Main Requisition Approval
Autocreate workflow : PO Create Documents
Autocreate workflow start-up process : Overall Document Creation/Launch Approval

For Purchase requisitions only, select Use Contract Agreements for Auto Sourcing to require the requisition creation autosourcing logic to include approved contract purchase agreements. The autosourcing logic for requisition creation will not consider contract purchase agreements if this box is unchecked, even if you have the profile PO: Automatic Document Sourcing set to Yes.

AG ? Approval group :
Navigation : Purchasing(N) -> setup -> Approvals -> Approval groups
AG is set of authorization rules comprised of include/exclude rules and amount limit and criteria for the objects.
1.Document total ? the maximum document amount that the approval group can approve.
2.Account range ? the distribution accounting flexfield ranges and their amount limit. It includes the sum of all the accounts in the distribution
3.Item range ? it can be for a particular item or range of items.
4.Item category range ? it can be for a particular item category or range of categories
5.Location ? limit for a ship -to or deliver -to locations

AA ? Approval Assignment :
It creates a linkage between Position/job, documents and approval group. AA names are global and line are OU specific.

Financial options : (OU specific)
Navigation : Purchasing(N) -> setup -> Organizations -> Financial options
to define the options and defaults that you use for your Oracle Financial Application(s). Values you enter in this window are shared by Oracle Payables, Oracle Purchasing, and Oracle Assets. Depending on your application, you may not be required to enter all fields.

Accounting (T):
Liability, pre-payment, discount taken
Supplier-entry (T):
RFQ only site, Hold unmatched invoices, Invoice Match option,
Supplier number (entry-auto/manual; type-alpha/numeric; next number)
Supplier/payables (T):
Payment terms, Payment method, Always take discount
Pay alone (separate payment for each invoice)
Supplier/purchasing (T):
Ship -to location, Bill -to location, Inventory org(purchasing org, if IMO then all the child orgs can purchase items)
Human resources(T):
Business group, Expense reimbursement address, Employee number (method, next number), use approval hierarchies
Encumbarance(T) & Tax(T)

Purchasing options : (OU specific)
Navigation : Purchasing(N) -> setup -> Organizations -> Purchasing options
to define default values and controls for functions throughout Purchasing. You can often override purchasing options when you are creating documents.



Substitute receipts : substitute items can be received apart from the main item
Blind receipt : The receiver at the gate can't see the PO qty and anything can be received. (sensitive option)
Express Transaction : same supplier and different items, sub-inv can be given while receiving, superseeds the receipt routing (even inspection)
Cascade Transaction : same supplier and same item, different PO, received in different UOMs, transaction is possible in different UOMs/places, once this method then express can't be used for the same POs.
Receipt routing : (1) Direct (receive & deliver) (2) Standard (Receipt then deliver)
(3)Inspection (receive, Inspect, deliver)

Line types : categorising the lines in purchasing documents and will default the values into that.
The parameters are, value basis ? Quantity/Amount, purchase basis ? Goods/services(based on value basis), category, Receipt required, Receipt close, UOM, Price if it is qty basis else 1, OSP item or not, inactive date


Supplier & Site :
Suppliers are global and sites are OU specific.
Navigation : Purchasing(N) -> Supply base -> Suppliers
Supplier :
Mandatory infos, classification -> type : Supplier, Invoice match option : PO
Region tabs : (1) General (2) Classification (3) Accounting
(4) Control (5) Payment (6) Bank accounts
(7) EDI (8) Invoice tax (9) withholding tax
(10) Tax reporting (11) Purchasing (12) Receiving

Site :
Mandatory infos : Site use, contact, payment terms, address, ship -to, bill -to
Region tabs : (1) General (2) Contacts (3) Accounting
(4) Control (5) Payment (6) Bank accounts
(7) EDI (8) Invoice tax (9) withholding tax
(10) Tax reporting (11) Purchasing


Supplier merge & transfer:
Navigation : Purchasing(N) -> Supply base -> Supplier merge
Merge ? unchecked, copy site
supplier site is merged from one supplier to another supplier. The previous site won't be visible in any of the supplier.
Transfer - checked, copy site
supplier site is copied from one supplier to another supplier. The same site will exits in both the suppliers.
It runs - ?Supplier merge program?; during merge/copy, invoices trasfer can be all/unpaid/none.

Supplier list :
Categorising of suppliers for specific list of products, like plastic suppliers. Mainly used in RFQ process.

Approved supplier statuses :
You can create any number of Approved Supplier Statuses to describe the condition of the Approved Supplier, ranging from fully Approved (the supplier has demonstrated the ability to satisfy rigorous quality, cost, and delivery requirements over a sustained period) to Debarred (no business is allowed with this supplier for a particular item or commodity), or New if you have never placed a purchase order with the supplier. Note: If you debar a supplier for a specific commodity (category) in the Approved Supplier List, the supplier is prevented from supplying all items within that commodity. However, if you approve a supplier for a commodity, the item-specific status for the supplier still takes precedence.
RFQ : Request for Quotation

status : in-process, active, closed (editable only in in-process stage)

Standard : one time, hi-value, rarely purchased items, Price-break
Catalog : hi-valume, normal item, Price-break
Bid : price and qty is firm, one-time purchase, Shipments

If RFQ shipment is ?firm? then MRP won't reschedule the documents.

Due-date : cut-off date for supplier to send the quotation
Close-date : grace period from the due-date, the system warns, if the quotation is sent after the close-date.
Quote-effectivity date : quotaion active period

Quotation :
This will be sent by the suppliers whom we sent the RFQ. It can be prepared manually or by ?tools->copy document? from the RFQ. The quote can't be approved in ?in-process? status. It also has the same status as RFQ.

Quote approval : (1) line (2) shipment/price break level (3) Quote workbench (Quote analysis ? to compare many quotes and approve in one-shot)


Requisition :
(1)Internal requisition : used to transfer material from one inv-org to another org, it is mainly used in ISO process.
(2)Purchase requisition : this is the starting point for material procurement, PO will be created based on requisition. This will have requester & preparer but requester is the owner of the document.
Requisition templates and preferences are used for defaulting of informations. (tools->preferences will void once you come out of oracle)

Purchase order :
1.CPA ? Contract purchase agreement
this is mainly used for service contract like AMC or painting and other services
- no item, qty, shipment, lines
- referenced in standard PO (standard po is called release)
- Amount agreed is used for approvals and Amount limit act as a limit to reference in SPO (AL >= AA)
- it requires the effective date of the contract
- payment terms, acceptance required (for document or shipment)
2.BPA ? Blanket Purchase Agreement
- Qty, promised & need-by date are grayed
- Agreement button won't have a control
- Limiting factors (between BPA & BR)
- AL >= AA, Price over-ride, price limit, Min-release in terms(B)
- Allow price-break override
- In cum. Price the prior purchases are added and the price-break is applied
- referenced in BR
3.PPO ? Planned purchase order
- Tentative schedule
- Min release [terms(b), Agreement(t)]
- Limiting factors (Qty, Amount limit)
- Price correction in schedule release is possible, can be bounded
- the price may vary during the period so amount limit has no effect with PPO total amount
- restricted to the qty
4.SPO ? Standard purchase order
- will have lines -> Shipment -> distributions
- shipment org will default from Financial options -> supplier purchase
- terms has a good control in PO
5.SR ? Schedule release
- can't exceed the unreleased qty
- limiting factors of PPO & SR
- Min release [terms(b), Agreement(t)]
- Approval limit
- Qty, price limit
6.BR ? Blanket release
- can't exceed the amount limit
- release is against the Agreement line
- receiving controls can be set like match approval, invoice match option.
PO accounts : (1) Charge (2) Accrual
(3) Budget (4) Variance


Approval hierarchy :
1.Employee ? Supervisor hierarchy (importance to the person)
2.Position hierarchy (importance to the position)

In Emp-Sup, the documents will follow the path (i.e, the subordinates documents will reach his boss) but position hierarchy will move the document to the upper position in name alphabetical order.
Set-up :
in HRMS responsibility,
1.create job
2.create position
3.create employees
4.Assign Job, position to the employees (for position hierarchy)
5.Assign Reporting to (for emp-sup hierarchy)
6.Create hierarchy (for position hierarchy)
in Purchasing responsibility,
7.Run concurrent : Fill employee hierarchy
8.Document type ? for all the requsitions & POs
9.Approval Group
10.Approval Assignment
11.Supplier & site creation
12.Buyer creation and emp-buyer relationship
13.Default line type in purchase options default(B)

Automatic document creation:
upon approval of requisition, the PO will be created automatically.
1.Master items
- check, Approved supplier list
2.ASL ? Approved supplier lists
- Navigation : Supplybase(N) -> ASL
- Org specific
- type can be Item or commodity, if item then commodity disapears and vice-versa.
- Business : direct, supplier & site, status ? approved/debared, Global-yes
- If the site is debared at any level then debar takes precidence
- Attributes(B)
- Source documents : Blanket / Contract / Quotation details with line no. (after 3rd step is created)
- Min order qty and fixed lot multiplier
- In inventory, VMI / consigned inventory
- Purchasing UOM
- Releasing method : Auto release/review, Auto release, Release using autocreate (create release concurrent is not required for this method since it runs based on workflow method)
3.Purchase Agreement
- Navigation : Purchase order(N) -> purchase order
- BPA / CPA / bid-quotaion
4.Sourcing rule
- whether the item is received from supplier/inventory org (buy from / transfer from / make at)
- Allocation% (used in planning) and rank
5.Assign Sourcing rule
- inetgration of Assigned to, Type (Sourcing rule / BOD), Sourcing rule.
- Assigned to can be,
(1) Item (2) Item-org (3) Organization
(4) Category Org (5) global (6) none
- Assignment set must be ? Supplier scheduling
If profile option- ?PO:Automatic document sourcing=yes? then no need to mention the BPA no in ASL. The search order would be BPA -> Bid quote -> CPA.

Auto create :
it is used when you want to combine the similar requisition lines, adding to a release, requisition grouping.
Action : create / add to
Document type : SPO/BR/PPO/RFQ
Grouping : default/requisition
In the manual mode, the priority can be changed and spiliting of lines is possible (tools->modify)