Oracle Purchasing Module Step by Step in R12

PURCHASING

All the Purchasing related activity information will be declared in Purchasing

Procure 2 Pay Cycle:

RequisitionRFQQuotation
Quotation AnalysisPurchasingReceivingInvoice PaymentReconciliation

PO-Integration: PO is integrated by GL, AP, I Supplier, Procurement, and Project Accounting

PO Responsibility

Step1: Define PO Responsibility
Nav: System administratorSecurityResponsibilityDefine
Step2: Assign PO options to the PO Responsibility
Nav: System administratorProfilesystem
Step3: Assign PO Responsibility to User
Nav: System administratorsecurityuserdefine

Note: PO is including some of i.e. Options, Supplier, Item, Expenses, and Purchasing.

Options: Options nothing but a Controlling future at the operating unit level.

They are Three Types of Option i.e.
1. Financial Option
2. Purchasing Option
3. Receiving Option

Financial Option: These options will be shared by Purchasing, Account table, Internet expenses
application

Nav: TCS POSetupOrganizationFinancial Option

Purchasing Options: It will be shared by the Purchasing applications

Nav: TCS POSetupOrganizationPurchasing Option

3. Receiving Options: This option will be shared by Inventory, Purchasing and Order
Management
Nav: TCS POSetupOrganizationReceiving Option

Employee:

It is used to position of the organization i.e. CEODMPMPO Clerk.

Step1: Define a Job

Nav: TCS HRWork structureJobDescriptionNew (A)

Step2: Create Employees

Nav: TCS HRPeopleEnter and maintain

Step3: Assign Job to be Employee

Nav: TCS HRPeopleEnter and maintain

3.1: Assign PO Clerk Jobs to the Employee1
3.2: Assign PO Manager to the Employee 2

Step4: Assign Manager to the Clerk

Nav: TCS HRPeopleEnter and maintain

Step5: Create User and assign Employees to the User

Nav: System administratorSecurityUserDefine

5.1 PO Clerk User Name
5.2 PO Manager (new)

Supplier:

Definition: Either Person or Organization who is Supplying Good or Services is called a
Supplier.

They are two levels of data in Supplier i.e.

1. Supplier header (Head Office): This Information is Global Specific

2. Supplier Site (Branch Office): This Information is Operating Unit Specific

Step1: Create a Supplier

Nav: Tcs poSupplier BaseSupplier

Step1.1 Create Supplier

After Organization (Tab), Address Book (T), Contact (T), Business Classification (T),
Product and Services (T), Purchasing (T), Receiving (T).

ITEM:

Definition: Item will be defined in either Inventory or Purchasing Application so it is used Inventory Key
Flexfield to define the Item, these are seven key flexfield in the inventory applications

Item Category Structure:
Family: Electricals



Classifiers: Lap tops Led TVs

Step1: Create Item Category Structure

Nav: TCS InvSetupFlexfieldskeySegment

Application : Inventory Flexfield Title: Item Category

Add New: TCS ITEM go to Segment

1. Family family Segment1 item categories
2. Class Class Segment2 Item Class Category

() Enable Freeze Flexfield DefinitionCompile (2 times)

Item Category Values

Step1.1: Define Values
Nav: TCS-InvSetupFlexfield KeyValues

Application : Inventory
Title: Item Category
Structure: TCS ITEM
Segment: Family goes to find
Add new Values

TCS Electricals TCS Electricals TCS Electricals
TCS Furniture TCS Furniture TCS Furniture

SAVE

Step 1.2 Class Values

Same Navigation

Nav: Go toviewfindsegmentClassindependent value TCS ElectricalsFind

Add new values

Laptop Laptop Laptop
LED TV LED TV LED TV

SAVEExit



Category Codes: Category codes are used to categories the Item

Step1: Define Category Codes

Nav: TCS-INVSetupItemCategoryCategory CodesNew

TCS ITEM TCS ELEC LAPTOP TCS ELEC LAPTOP

TCS ITEM TCS ELEC LEDTV TCS ELEC LEDTV

Category Set: It is used to group the values categories

Step1: Define Category Set

Nav: TCS INVSetupItemsCategoriesCategory setsOrganization (Win ) TCS
SOFTWARE ORGOK

Category Set (Window)

Name: TCS Category set
F Structure: TCS ITEM
Default Category: TCS ELEC LAPTOP
() Allow Multiple Item Category
Category

TCS ELEC LED TV

SAVEClose

Create Item

Step1: Define Item

Nav: TCS INVItemsMaster Item

Go to Main (T): Primary: Each
Go to Inventory (T): Enable Inventory Item
Go to Purchasing (T): Enable Purchasing and 01.001.5050.000
Go to Order Management (T): Enable Customer Ordered
Go to Invoice: Enable Invoice and Sales A/C: 01.001.5110.000

SAVE

Note: place curser on ITEM (LAP TOP)go to TOOLSCategoriesCategory Assignment (Win )

Category set Control Level Category
TCS Category set Master TCS ELEC LAPTOP

SAVECloseClose

Open PO Periods

Nav: TCS POSetupFinancialAccountingControl Purchasing Periods

Document Types: It will determine the futures of various Purchasing
Documents.

Step1: Define Document Type

Nav: TCS POSetupPurchasingDocument Types

Approval Groups: This are used to define the authorized limit for various Job

Step1: Define Approval Limits

Nav: TCS POSetupApproval Approval Groups

Operating Unit: TCS Software
Name: PO CLERK

Object Type Low value High value

Document Type include 500000

Account Range Include 500000 01.001.1000.000 Z.ZZ.ZZZZ.ZZ


Nav: TCS POSetupApproval Approval Groups

Operating Unit: TCS Software
Name: PO MANAGER

Object Type Low value High value

Document Type include 500000

Account Range Include 500000 01.001.1000.000 Z.ZZ.ZZZZ.ZZ


Approval Assignments: It is used to Assign Approval goods to the Jobs

Nav: TCS POSetupApprovalApproval Assignments

Step1: PO CLERK

Operating Unit: TCS Software
Job: TCS POCLERK

Note: Add the EIGHT Approval Assignments

Nav: TCS POSetupApprovalApproval Assignments

Step2 PO MANAGER

Operating Unit: TCS Software
Job: TCS POMANAGER

Note: Add the EIGHT Approval Assignments


Buyer: A person who is buying goods or services behalf of organization is
called a buyer


Define a Buyer i.e. emp1 as buyer

Nav: TCS POSetupPersonalbuyer

Add BuyerSave

Define a Buyer i.e. emp2 as buyer

Nav: TCS POSetupPersonalbuyer

Add BuyerSave

1. Requisition: When there is goods are services requirement in Organization
Service is in employee

These Requisitions contain three levels of information i.e. 1.header 2. Lines
3. Distribution

For Example Serial No: Supplier

105 Sony pvt ltd Header
Lap Top 10*10000=100000Line



Distribution



They two types of Requisition 1. Internal Requisition
2. Purchase Requisition

Internal Requisition: Internal Requisition will be created by Employee and send to the where house to
adjust items internally
Purchase Requisition: It will be created by Employee and send to the Purchasing department to accrue
goods from external sources.

Step1: Create Purchase Requisition

Nav: TCS PORequisition

Operating Unit: TCS Software
Type: Purchase Requisition

A. Go to Lines (T) [ check Source, Details, Currency,)
B. Go to distribution Account(T)enter Amount and AccountSaveClose
C. Come to Requisition(Win )ApproveEnable Submit for Approval, PrintOk

Step2: Query the Purchase Requisition to check the Approval status

Nav: TCS PORequisitionRequisition Summary

Operating Unit: TCS Software
Requisition Num: 1
Find
Requisition Summary (Win)
Number Description Approval Status Create Document
1 Test Approved ------------


2. RFQ (Request For Quotation): RFQ will be created by Buyer only and send to the various Suppliers to
obtain Quotation.

They are three types of Standard RFQs
1. Catalog RFQ
2. Standard RFQ
3. Bid RFQ
RFQ will be created in two ways i.e. 1. Manual, 2. Auto Create

Manual RFQ Create
Catalog RFQ: These will be created by regular purpose so these are contains three levels of data i.e. 1.
Header 2. Lines 3. Price breaks

Step1: Create Catalog RFQ

Nav: TCS PORFQ QuotationRFQ

Operating Unit: TCS Software Type: Catalog RFQ
Description: testing Close Date:

Come to Item (T)

Num Type Item UOM Total Payment
1 goods Laptop each 35000

Go to Terms
Testing and Condition
Price Breaks (T)

Num UOM

More (T)

Num Match Approval Tolerance Exception
1 2Way 10 Warning

CloseSave
Go to SuppliersRFQ Supplier 1
Seq Supplier Site
1 Sony Sony hyd

Close
Come to RFQ (Win )

Status: Active

Close the Application
Step2: Print RFQ

Nav: viewRequestSubmit a new requestselect single requestok

Name: Print RFQ Report (Land Scope)

Operating Unit: Tcs Software
Parameters: all
From 1 to 1ok

View Requestfindenter


Standard RFQ: It is used for items which are buying very occasionally they are three levels of information
in Standard RFQ
1. header
2. line
3. Price breaks
Bid RFQ: It is used to for High value item which are having special shipping details
Example: Machinery (Rice Machine)
Three levels of information in Bid RFQ
1 Header
2 Line
3 Shipment

Auto Create RFQ:

Nav: TCS POPurchase OrderAuto create


Quotation: Quotation are received from supplier and entered in the Oracle
PO it contains all items segment details.

They are Three Types of Quotations i.e.
1. Catalog Quotation
2. Standard Quotation
3. Bid Quotation

Quotation Created by Two Ways i.e.
1. Manual
2. Auto Create

Manual Creation: This manual used to Catalog Quotation

Step1: Create Catalog Quotation

Nav: TCS PORFQ and QuotationsQuotations
Operating Unit: TCS Software Type Catalog
Supplier: Sony Site: Sony Hyd

Go to Item (T)

More (T) go for Price breaks More (T)
Status: Active


Approve
Note: Quotations are created by only Buyers.











Purchase Orders: Its a legal document which will be created by
Organization and send to the Supplier to buy goods or services

They are Four Types of Purchase Order i.e.
1. Standard Purchase Order
2. Plan Purchase Order
3. Blanket Purchase Agreement
4. Contract Purchase Agreement


These are four level of information in purchase order
Header
Lines
Shipment
Distribution

Purchase Order can be create in two ways: 1. Manual 2. Auto create

Manual Creation:

Standard Purchase Order: its a legal document to buy goods of service by supplier it will be created
when we know the term and conditions goods or services, price, Quantity, Delivery, Schedule, and
accounting distribution and also it is one time purchase order.

1. Create Standard Purchase Order

Nav: TCS POPurchase OrderPurchase Order

Operating Unit: TCS Software Type: Standard Purchase Order
Supplier: Sony pvt ltd Site: Sony hyd

Come Lines (T)

Come to Price Breaks (T) go to shipments(T), go to More (T), Status (T) , Place curser on shipment go
to Receiving Controlgo to distributionsave
Distribution come to More (T), go to ApproveOK.

2. Plan Purchase Order: It is long time agreement so its agreement between the Org and Supplier to buy
goods or services it will be created when we know the terms and conditions goods or services, price,
quantity, and distribution, schedule, so later we will create schedule release with the reference of plan
purchase order and send to the supplier to obtain goods or services.

3. Blanket Purchase Agreement: its Agreement between Org and Supplier to buy goods or services it
will be created when we know the terms and condition goods or services and price later blanket retain
will be created with reference of blanket purchase agreement and send to the supplier to obtain good or
services

4. Contract Purchasing Agreement: its long term agreement release a Org and Supplier it will be created
when we know the terms and condition later standard purchase order will be created with reference of
contract purchase agreement and send to the supplier to obtain goods or services



Receiving: Entering Delivery Information in the system is called a Receiving

They are three types of receiving methods
1. Direct method
2. Standard Receipt
3. Inspection
Note: always receiving will be done at inventory Organization

Open Inventory Periods:

Nav: TCS INVA/c ing Close CycleInventory A/c ing PeriodsTCS Software Inventory
A/c (Win ) change month status i.e. open

Sub inventory:

Step1: Define Sub inventory

Nav: TCS INVsetupOrganizationSub inventorySub inventory summary (Win)
OpenSub Inventory

Name: TCS Sub Inv Description: Tcs sub inventory


Accounting (T):
01.001.7515.000
01.001.5370.000
01.001.1410.000
01.001.1410.000
Resource 01.001.1481.000 Save

On Hand Availability:

Nav: TCS InvOn Hand AvailabilityOn Hand QuantityQuery Material (W)
FindMaterial Work Bench


Direct Delivery: it is receipt routing goods will be direct delivery to final destination

Step1: Create Purchase Order with Receipt Routing Direct Delivery

Nav: TCS POPurchase OrderPurchase Order Purchase Order (W)

PO Receipt: 1goes to Shipment, come to receiving controls enable Receipt Routing is Direct
DeliveryOK

Go to Status (T)
Num status ordered received excel bill
1 10 0 0 0

Close Close

Step2: Receive the goods
Nav: TCS POReceivingReceiptsTCS Software OK

Step3: Check the receiving transaction status in the remaining transaction summery window
Nav: Tcs POReceiving Receiving Transaction Summary

Step4: Check the received Quantity in the purchase order
Nav: Tcs POPo orderpo order

Step5: Check the material on hand availability
Nav: Tcs invon hand availabilityon hand quantity

Standard receipt: Under this receipt routing first goods will be received at one place and send to the
final destination

Step1: Create the purchase order with receipt routing standard receipt
Nav: Tcs POPurchase orderPO Order
Step2: Received the goods at one place
Nav: Tcs POReceiving Receipts Tcs software orgok
Step3: Check the receiving transaction status in the receiving transaction summary window
Nav: Tcs POReceivingreceiving transaction summary

Step4: Delivery goods the final destination
Nav: Tcs POReceiving receiving transaction
Step5: Check the receiving transaction status in the receiving transaction summary window
Nav: Tcs POReceivingreceiving transaction window

Inspection: Under this method first goods will be received at one place then inception came then
inspection people inspection then goods after that the final destination.

Step1: set a QA Inspection people option name at responsibility level
Nav: System administrator SystemPeople

Step2: Create the purchase order with receipt routing standard receipt
Nav: Tcs POPurchase orderPO Order

Step3: Received the goods at one place
Nav: Tcs POReceiving Receipts Tcs software orgok

Step4: Check the receiving transaction status in the receiving transaction summary window
Nav: Tcs POReceiving Receipts Tcs software orgok

Step5: Inspects the goods
Nav: Tcs POReceivingreceiving transaction

Step6: Check the receiving transaction status in the receiving transaction summary window
Nav: Tcs POReceivingreceiving transaction summary

Step7: Delivery the goods to the final destination
Nav: Tcs POReceivingReceiving Transaction

Step8: Check the receiving transaction status in the receiving transaction summary window
Nav: Tcs POReceiving Receiving Transaction summary


Returns: It is used to record the returns goods information

Step1: Check the material on hand availability
Nav: Tcs invon hand availabilityon hand quantity Tcs soft org
Step2: Return the goods to supplier
Nav: Tcs POReceiving ReturnsTcs Soft org
Step3: check the on hand availability

Nav: Tcs invon hand availabilityon hand quantity Tcs soft org