PURCHASING (PO USEFUL INFORMATION)

PURCHASING (PO USEFUL INFORMATION)

/* PO Notes

The purchasing deals with buying the

material from the supplier and for this we
use the purchase order. The purchase order
should not be confused with the sales
order. A purchase order is one which you
place to a supplier for the goods while the
sales order is the one which the customer
places for the products that you sell to the
customer.So once we place the purchase
order, the supplier will provide the goods
for us and he also provides the invoice which
goes to the Accounts payable system. Now we
have also seen in the AP system, this invoice
can be matched against the purchase order.

Now in general, in a typical company, a

purchase order is not raised right away.There
is a process where a requisition is first
raised and in response to that requisition, a
purchase order is created. For ex
in a PO system,an employee first raises a
requisition for, say, a inkjet printers,
which goes thru the standard workflow process
and it gets approved by the manager etc. So
in order to raise a requisition,
the user must be defined as a
EMPLOYEE.(This can be done in setup,
personnel ,employees)
*/

/* REQUISITIONS : Once the requisition goes

thru, the user can raise a purchase order.
Now for the purchase order to be raised the
user must be defined as BUYER.(This can be
done in setup, personnel, buyer)

So let's go thru the route of creating the

purchase order by initially creating a
requisition. This is quite similar to
creating a sales order. Here we can request
an item which can be an asset, could be an
expense or an item which eventually goes to
the inventory etc. Let us see the difference,
an asset is one which is like a chair or a
keyboard for your computer which we are
using. An expense is like going for a dinner
and an item can be requested which eventually
goes into the companys inventory. Here we
mention the supplier details,organization etc
information and then create a requisition.
Get the requisition from the base header and
detail tables as */

SELECT
requisition_header_id,
authorization_status,
type_lookup_code,
wf_item_type,
wf_item_key,
created_by,
preparer_id
FROM
po_requisition_headers_all
WHERE
created_by= (select user_id from
fnd_user where user_name ='LAJAGARL')

--Get the Requisition details.

SELECT
requisition_header_id,
requisition_line_id,
source_type_code,
item_id,
 destination_type_code,
org_id,
item_description,
destination_organization_id
FROM
po_requisition_lines_all
WHERE
creation_date = (select
max(creation_date) from
po_requisition_lines_all)

-- We can get to know the status of that

PO item (as we can get it in OM)
from the workflow tables using the query..

SELECT item_type, item_key,

activity_status, begin_date, end_date,
activity_name, process_activity
FROM wf_item_activity_statuses,
wf_process_activities
WHERE item_key = '1420741-14412' --
'57516224'
AND item_type = 'REQAPPRV'
AND process_activity = instance_id
 ORDER BY begin_date, end_date

/*
Requisition Import :
In addition to creating the requisitions
online, they can also be imported as as
batch. Once imported they go into the table
po_requisitions_interface_all. Once imported,
we need to run the "Requisition Import" from
the "GL Corporate Purchasing" responsibility
which then populates the table
"po_requisition_headers_all" and
"po_requisition_lines_all" tables. While
running the requisition import, the
concurrent program asks for the source (from
where to be imported). This source value is
coming from the above interface table.
*/

-- Vendor Information can be found from

this query.
select vendor_id, vendor_name,
segment1,vendor_type_lookup_code,
accts_pay_code_combination_id ccid
from po_vendors
where vendor_name like 'SAFEGUARD%'
 /*PURCHASING : The following queries store
the information about the
purchase orders.
When a purchase order is
created/approved, there are no accounting
impact on GL. The only account that is
specified at the PO Level is the PO Charge
Account and that is an accrual account. What
this means is the when you receive against
this PO(at periodend or at receipt),
automatically the accrual
lines are generated and transferred to GL
i.e these lines hit the accrual account. When
we say automatically, means seamlessly or
online, we dont need to run any specific
program to push
those lines to GL.

Accrue at Period End means that when a

receipt is saved, the accrual transactions
are NOT
immediately recorded and sent to the general
ledger; instead, the accounting entries are
generated
and sent at the end of the month by running
the Receipt Accruals - Period-End Process.
End-of the month accruals are only available
for expense purchases, i.e period end
accruals and upon-receipt accruals are
available for expense items, while inventory
items are always accrued immediately.
*/

-- The default ship-to, bill-to location is

defaulting from Financial Options.
select po_header_id,
type_lookup_code,segment1
po_number,vendor_id,

vendor_site_id,authorization_status,wf_item_t
ype
wf_item_key,creation_date,
last_update_date
from po_headers_all
where segment1 = '10000080'

select po_header_id,po_line_id,item_id,
category_id, item_description,
list_price_per_unit,unit_price,
quantity, request_id
from po_lines_all
where po_header_id =24271
 /*Typically the purchase order header
information will go into po_headers_all,
The purchase order lines information
will go into po_lines_all
the purchase order shipment information
will go into po_line_locations_all
(i.e the time and location,
need_by , the location where this needs to be
shipped).
These locations are usually the inventory
locations.
the purchase order distribution
information will go into po_distributions_all
(code_combination etc).

So each PO will have

headers,lines,shipments and distributions.
Another caveat here in creating the PO
shipments is as follows. While creating
shipments, we specify the ship to org and the
ship to location. Here the default value is
coming from the item orgs,i.e if the item and
its revision is assigned to say org V1, then
that org only comes. Here you can specify
master org as well, but you cannot receive in
the master org. Hence it is important that
you specify an org which is not item master
org.
 */
select po_header_id, po_line_id,
po_distribution_id,code_combination_id
,destination_type_code,
destination_subinventory, request_id
from po_distributions_all
where po_header_id = 24271

/* PO APPROVAL PROCESS : Having created

the PO, the next step is the PO Approval
Process.
Purchasing and HR Stuff.
If HR is not completely installed. We
can define the employees and positions
in Oracle purchasing, However if HR is
installed then the applications will force
you to define
the employees ,supervisors and positions in
the HR module.

In Oracle HR,People are different from

the employees. Not all the people defined are
employees. Employee information goes into the
table "hr_employees" and the people
information goes into the "per_all_people_f"
table, but an employee will be in both the
hr_employees and per_all_people_f tables.
Typically if there are any contacts for an
employee ,then they will be entered as the
people.

-- The below query can be tried to see if

the HR product is installed or not.
Interesting all the HR related code is
present in the applicaction
--user PER and not HR

select INIT_FUNCTION_NAME from

FND_PRODUCT_INITIALIZATION
where APPLICATION_SHORT_NAME = 'PER'
and exists (select 1 from
FND_PRODUCT_INIT_CONDITION C
where C.APPLICATION_SHORT_NAME
= 'PER'
and C.RE_INIT_CONDITION in
('USER','RESP','APPL','NLS'))

Normally, whenever a purchase order is

raised ,say,by an employee. then it will be
routed thru the next in the hierarchy. And
there are two types of hierarchies in the
Oracle purchasing module. One is position
approval hierarchy and another
employee/supervisor hierarchy. This setting
can be defined using the path setup =>
Organization => Financials Options screen. =>
Human Resources tab.

If the "Use Approval Hierarchies" check

box is checked, then it means that the
position approval hierarchy is used. If the
"Use Approval Hierarchies" check box is
unchecked, then it means that the
employee/supervisor hierarchy is used.

Let us briefly dwell on what is the

difference between these two hierarchies. In
the case of Position Approval Hierarchy,
firstly a hierarchy of all the positions in
the company are defined. for ex, Manager,
Senior Manager, Executive director, Vice
President, etc; all these positions are first
defined. So if a manager raises a PO, then
that document is routed up the hierarchy i.e
it is routed to the senior manager.

In the case of Employee/Supervisor

Hierarchy, while we are defining an employee
,say ,Smith, then his manager ,say, David, is
also specified. And a document is routed to
that manager David.
 Incidentally in Oracle purchasing, there
are lot of document types defined. That is ,a
requisition(Internal or Purchase), planned
purchase order, standard purchase
order.etc. We can see these types from the
path

setup => Purchasing => Document Types.

*/

/* Requisition/PO Approval Process

-- For PO Approvals on Position based , do

the following items on checklist.

If the requester needs to approve the

requisition that he has created, then ensure
that the document type in setup=> purchasing
=> document types => Owner can approve etc.

Firstly the requester should be an

employee,make sure that this is defined as
the HR employee. Go to the HR, and find out
the position for this particular
employee(requester) for ex, ENGINEER III.

Now for this POSITION, Go to Setup =>

Approvals => Approvals Assignment.
 and assign the appropriate document type,
and approval group
(for ex DIRECTOR APPROVAL GROUP)

Approval Group : Approval Group basically

ensures what is the approval limit.
Importantly check the PO dist account and
ensure that, that particular account is
specified in the account range in the
Approval group.
Document Type : whether that position
can approve this document type like
standard,planned PO's.

Make sure that this approval group has the

sufficient amount as the approval limit using
the menu
Setup => Approvals => Approval Groups.

-- For approval of Employee /supervisor

based (JOB)

If you are not using the position approval

hierarchy ,that means you are using
employee/supervisor
 hieararchy,then approval assignments and
approval groups need to be defined for that
particular JOB.
And follow the same above procedure.

Hence to summarize, if the positional

approval hierarchy is used then the approval
groups and approval assignment should be
created for that position. If the
employee/supervisor hierarchy is used, then
the approval groups and approval assignment
should be created for that Job.

Now in this case, we are assuming a simple

case of owner approving the requisition. So
in this case, once the preparer creates the
requisition and presses the approve button,
the document automatically gets approved , as
long as every thing is fine.

Howerver let us take another case, where in

the once the document is submitted for
approval based on the following setting, it
is routed to the next person in the
hierarchy.

This setting can be defined using the path

setup => Organization => Financials Options
screen. => Human Resources tab.
 Now let us say if the system is using the
employee/supervisor hierarchy, then the
supervisor will login to the system and from
the worklist notifications, he can find a
requisitions pending to approve. which he can
pick and approve.

Now once the requisition stuff is done, we

can do an Autocreate and create a purchase
order from the requisition. Once the purchase
order is created, we can use the following
query to ensure that it works and then the PO
is approved.
*/

/*Usually for our testing purposes, the

purchase order we can create one, and for
approval we can use the following query to
make it work.Once the po is approved, we will
be able to receive against that po.*/
SELECT ph.segment1, ph.po_header_id,
ph.type_lookup_code,
ph.displayed_field TYPE,
ph.vendor_name, ph.vendor_id, ph.full_name,
'Vendor'
FROM po_pos_val_v ph
WHERE (segment1 LIKE '1100024688')
 AND ( EXISTS (
SELECT 'Valid PO Shipments'
FROM po_line_locations
poll
WHERE ph.po_header_id =
poll.po_header_id
AND NVL
(poll.approved_flag, 'N') = 'Y'
AND NVL
(poll.cancel_flag, 'N') = 'N'
AND poll.shipment_type
IN

('STANDARD', 'BLANKET', 'SCHEDULED')

AND
poll.ship_to_organization_id = :2
)
AND ROWNUM >= 1
)

/* RECEIVING :
So once the PO is approved, it is now
ready for receiving the goods from the
Supplier.
 Understanding the Receipts form : When you
first want to receive any thing and open the
receipts form, firstly it show the "Find
expected receipts". This form had various
field
like PO, receipt number, receiving
location etc. Now what we have to understand
from this form
is that,if we want to receive items
corresponding to a PO, then we have to enter
that PO number
and then press "Find" button. Now if we
want receive all the items that are supposed
to be shipped
at a receiving location, then we enter
that receiving location and press "Find"
button,
which in turn will show all the purchase
orders that ship item to that specific
receiving location.
What this means is that the form checks if
it has been already received, and if it is,
then it
will say no records exist otherwise, we
can create a new receipt record.
 IF YOU HAVE ALREADY RECEIVED, THEN THIS
FORM DOES NOT SHOW ANY RECORDS AND HENCE IT
IS CALLED FIND EXPECTED RECEIPTS. AND ONCE
RECEIVED ,THEN YOU CAN GO TO
"RECEIVING TRANSACTIONS SUMMARY FORM" and
check the transactions.
*/

/* While recieving checklist :

1. Just like GL,AR ,Inventory has its own

periods as well & we can open period from
(setup => costs => cost periods .And
the data goes into the org_acct_periods??)

Oracle Inventory --> Accounting Close Cycle

--> Inventory Accounting Periods --> Change
status

In inventory only one period at any time,

while in GL or Purchasing any periods can be
open.
This is the most trickiest part. Actually
in inventory if you need to open any period,
then the
 previous period needs to be already opened.
That is if the previous period is not open
yet,
just open and close it.

2. Also ensure that the purchasing periods

are open, however in this case more than one
periods can be open
simultaneously.

Setup => Financials => Accounting =>

Control Purchasing Periods.

3. One important thing is ,we talked about

the ship to org id above. So when we open the
receipts
form, make sure you pick only that
organization that you mentioned in the PO,
i.e you are receiving
only in that org. That is from the
inventory ,pull this item up and click on org
assignments and
assign this item to that particular
receiving organization and save it.This
basically means that item is
transactable in that particular
organization.
 4. Another important point is the Item
revision which is is also related to the
organization
assignment. That is once we define an
item in master org and assign them to
different orgs.
And also if we go to the org assignments
and click on the "org attributes" button, we
will find that
we can define a revision for this item.
Hence when you are entering a PO using
the PO from,just ensure that you are giving
the right
revision for this item,otherwise we may
not be able to select the correct ship to
organization id
in the shipments form.

5. You cannot receive in a master

organization and hence you will not see the
master organization
in the LOV when receipt'ing.*/

/* The following queries give the

information about the RECEIPTS we make for
the purchase orders created above.
 Once we enter a receiving txn,and the
rec txn processor processes it, there will be
an entry in this.
rcv_transactions stores the historical
information about receiving transactions that
you have performed.
There will not be any updates on this
table. */
select
transaction_id,transaction_type,quantity,inte
rface_source_code, source_document_code,
destination_type_code, po_header_id,
po_line_id, po_distribution_id,
routing_header_id
,subinventory,shipment_header_id,shipment_lin
e_id,creation_date
from rcv_transactions
where po_header_id = 434
--and creation_date >= '15-OCT-2004'

-- The key thing is that select the check

box and save it.

/* Any receipts go into

rcv_shipment_headers and lines. the column
receipt_source_code
 indicates whether the material has come as
part of internal order or from a vendor
(or supplier). If it is an internal order
ie. inter-org transfer, then the
organization_id column indicates from which
org it has come.
It is important to note that the
rcv_transactions talk about 2 transactions
for each receipt ie.
one for receiving the item from the
vendor to the receiving dept
another for receiving the item from the
receiving dept to Inventory.
However in the case of shipments, we find
only one entry i.e from the vendor
and you mention the location of shipment.
*/
-- Get the shipment header id and shipment
line id from the above query.
select
receipt_source_code,bill_of_lading,vendor_id,
vendor_site_id,

receipt_num,ship_to_org_id,organization_id
from rcv_shipment_headers
 where shipment_header_id = 132612

select
last_update_date,shipment_header_id,shipment_
line_id,quantity_shipped,quantity_received,

shipment_line_status_code,source_document_cod
e,item_description,item_id,

po_header_id,po_line_id,po_distribution_id,po
_line_location_id,routing_header_id

,destination_type_code,to_subinventory,delive
r_to_location_id,
charge_account_id
from rcv_shipment_lines
where shipment_header_id = 132612

Hence you are receive against a PO,

Requisition, a RMA.

/* Just a quick word. As we mentioned

before, when we receive automatically the two
GL lines are
 created all the way in gl_interface
table,which can be checked from the following
query.
These two lines correspond to two GL
accounts and they are receiving material
account
and AP accrual account. I have seen some
times both the accounts are given as same
and in that case, the two lines will
look exactly identical i.e with the same code
combination id.
Receiving options => Receiving Inventory
Account
Purchasing options => AP Accrual
Account.

HenceSo the only thing that goes from PO to

GL is the accruals.( all these liabilities
,expenses will go from AP). For more
info, look at the AP queries file.
*/
select * from gl_interface

/* The two other inventory tables which get

updated are mtl_material_transactions
and mtl_transaction_accounts.
 Here we can give the rcv_transaction_id
that we obtain from the above query
(for DELIVER record, because that is the
one which fills the inventory) and get
that material transaction.*/

select
transaction_id,inventory_item_id,organization
_id, subinventory_code,rcv_transaction_id,

primary_quantity,actual_cost,source_code,cost
_category_id,
owning_organization_id,creation_date
,transaction_type_id
from mtl_material_transactions
where inventory_item_id
= (select inventory_item_id from
mtl_system_items_b
where segment1='0000799102923'
and organization_id = 82)
and creation_date >='18-OCT-2004'
--and rcv_transaction_id = 582138

-- Now since there is an increment in the

inventory i.e the on-hand balance should
 --increase for that inventory item.
SELECT
inventory_item_id,
organization_id org,
transaction_quantity,
primary_transaction_quantity qty,
subinventory_code subinv,
cost_group_id ,
owning_organization_id,
planning_organization_id,
creation_date
FROM
mtl_onhand_quantities_detail
WHERE
inventory_item_id = (select
inventory_item_id from mtl_system_items_b
where segment1='0000799102923'
and
organization_id = 82)

/* PROCURE TO PAY FLOW : So having gone

thru the Purchasing ,Receiving ,here is the
typical flow for P2P
 Procure to Pay Flow

Try to put this into the equation like

PO ==> RCVT ==>
INV ==> PMT

Keeping that in mind, we can have several

reports.
If there is a PO, and there is a
receipt, then it is normal case.
If there is no PO, and there is receipt,
then we can get it from the "Unordered
Receipts" report

If there is a RCVT, and then there is an

invoice => Normal Case
If there is a RCVT, and then there is NO
invoice => Uninvoiced Receipts Report
*/

You specify which supplier site is

participating in the Pay on Receipt feature
by setting on the self billing region.
Supplier => Supplier Site => Purchasing
tab =>Self Billing Region
 => Pay on => Receipt

*/

-- From Item Master..

SELECT segment1
FROM mtl_system_items_b
WHERE inventory_item_id = (select
inventory_item_id from mtl_system_items_b
where segment1='0000799102923'
and organization_id = 82)

/* Return Material Authorization : The

Purchasing's Receiving can be used to receive
the customer RMA's. Typically this is
what happens. for a item which is returned
by your customer, the sales rep will create
a RMA. Hence while receiving that
item, we can enter the RMA number and then
receive that customer returned item.
Hence , we can see that while we are
receiving any thing we need the corresponding
number like PO number or RMA number etc.*/

/* Generally there are some managers(like

Cost Manager) which we need to run explicitly
 (or scheduled) to generate the accounting
entries for the materials in inventory. The
access path is
setup=> Transactions =>Interface
Managers.
Hence it is very important to understand
that this table will get updated only if the
Cost Manager is up and running. What the
cost manager basically does is that, for what
GL account this item which has been
received should be attributed to.*/

select last_update_date, transaction_id,

reference_account,inventory_item_id,
organization_id org,
transaction_date, primary_quantity,
gl_batch_id, rate_or_amount,cost_element_id
from mtl_transaction_accounts
where inventory_item_id = (select
inventory_item_id from mtl_system_items_b
where segment1='0000799102923'
and organization_id = 82)
and creation_date >= '19-OCT-2004'

/*We can know the complete details of the

account by giving the code combination id
 obtained(reference account) from above
query to the following query.*/
SELECT
a.segment1||'-'||a.segment2||'-
'||a.segment3
||'-'||a.segment4||'-'||a.segment5||'-
'||a.segment6 acct_code ,
a.*
FROM
gl_code_combinations a
WHERE
code_combination_id = 1083

/* For RETURNS, we do find a transaction

in the rcv_transactions, with the
corresponding
shipment header id.
As an ex, we can return an item in two
steps, first step is to return to receiving
dept and second is to return to the vendor
*/

select
rma_reference,transaction_id,transaction_type
,quantity,interface_source_code,
source_document_code,
 destination_type_code, po_header_id,
po_line_id, po_distribution_id,
routing_header_id
,subinventory,shipment_header_id,shipment_lin
e_id
from rcv_transactions
where po_header_id = 23855
--and po_line_id = 213748

/* Here is an important test case which we

can test. Let us say we have a PO which has
an item for a price of $5. We have raised
another PO for the same item at a different
time , but for a price of $10. Now if we
return the item corresponding to the first
PO now, does the cost manager update the
mtl_transaction_accounts with $5 or $10. As
per the standard functionality, the cost
mgr will update the table with the same price
as that of the original PO.
*/

-- AP related queries.
select * -- po_distributions_id from
ap_invoices_all order by creation_date desc
select * from ap_invoice_distributions_all
where po_distribution_id = 213198

select * from ap_holds_all where invoice_id =

55856

select * from ap_invoices_all where

invoice_id = 55856

/* Receiving Locations are designated areas

where you temporarily store items before they
are moved to their final destinations, ex
(receiving dock and inspection area are
receiving locations.If necessary we can
create even additional locations like cold
storage area where the items are pending
inspection */

select * from hr_locations_all

/*Receiving Controls, Options and

Tolerances. We can look at the whole bunch of
options at
setup => Organizations => Receiving
Options
Ex. If the receiving tolerance is say 1%,
then you may receive the item more than the
 ordered amount by 1% less or more. Similarly
if the receipt days early/late is 5, then
you can receive 5 days early or late by 5
days. */

/* ASN : Advance Shipment Notice : An ASN is

transmitted via EDI(Electronic Data
Interchange) from a supplier to let the
receiving organization know that a
shipment is coming. */

-- can we have more than 1 shipment for an PO

line, y they r giving another window for
that. ???????
-- y am i not able to receive using the
receiving transaction from ??????

------------------------HR STUFF
-- Set the environment in the production
environment (
fnd_client_info.set_org_context)
BEGIN
 dbms_application_info.set_client_info(485);
END;

SELECT employee_id FROM fnd_user WHERE

user_name LIKE 'PLUI'

SELECT * FROM per_all_people_f WHERE

person_id in (3015615)

SELECT job_id, person_id, position_id FROM

per_all_assignments_f WHERE person_id in
(3015615)

SELECT name job_name FROM per_jobs WHERE

job_id = 1602

-- This query given a job function,will give

the approval group.
select control_group_name from
po_control_groups where control_group_id in
(select control_group_id from
po_position_controls where end_date is not
null and job_id in (
select job_id from
per_jobs_vl where name like 'E7-G AND A' ) )
-- This query ,given a approval group, will
give the approval limits.
select * from po_control_rules where
control_group_id in
(select control_group_id from
po_control_groups where control_group_name =
'NCE 10/CE 10')

-- This query given a job function name, will

give the approval limits.(Make sure you set
the correct org_id before you check the
amount limits.

select * from po_control_rules where

control_group_id in
(select control_group_id from
po_control_groups where control_group_id in
(select control_group_id from
po_position_controls where end_date is not
null and job_id in (
select job_id from per_jobs
where name like 'E7-G AND A' )
)
)

------------------------------
Urgent Help needed regarding a PO.

Hi
In our production system, we have a
requisition which has been created and
approved. There is a PO Autocreated for this
requisition with the current status being 'IN
PROCESS'. After this a change was made in the
requisition ,which was approved and the
change was also accepted in the PO.

However when we go to the Purchase Order

Summary and open up that PO, the "Open"
button is disabled. When I look at the Action
History for this PO, it has all the action
history with the latest one being having
Action value NULL and performed
by field is having the buyer info.

I poked around and changed the status of the

PO from 'IN PROCESS' to 'REQUIRES REAPPROVAL'
from backend. After this when I open up the
PO from PO Summary, the Open button is
enabled. Then again I submitted it for
approval. After it was approved by the
manager, the status again went back to
'REQUIRES REAPPROVAL'. So I am not sure what
I am supposed to do at this point. Can some
one give us some pointers as to what should
be done if the PO Status is 'IN PROCESS'and
the "Open" button is disabled. How do we
progress with this PO. This is very urgent
and any help is greatly appreciated.
Thanks in advance.
----------------

265498.1 to find out about the document

manager failed. Typically the document
manager with error number 1 and 2 could be
handled and documented, in my case, the
document manager with error number 3 was
resolved by restarting the PO document
manager.

select * from po_approved_supplier_list

why is that even if everything is fine, the

PO are going to BOD in dev.
If proper approval assignments and groups
are not defined then even if the requisition
is of
small amount, it will indefinitely go up the
approval hierarchy until the appropriate
person with
apporoval limits are defined.
--- Check the accounting periods open or not
select * from gl_period_statuses
where application_id =(select application_id
from fnd_application where
application_short_name ='PO') -- PO =201,
INV=401,
and set_of_books_id = 1
and period_name like '%-06'
order by period_num

--Sourcing Rules :
/* Sourcing rule indicates where an item
needs to be sourced from. That is if ever
there is a PO or req
raised against a particular item, we need to
go with which supplier.
So we first create a sourcing rule
mentioning what are the effective dates and
which supplier name.
And then assign it to an item. That is we
can assign it to an item, Inventory
Org,Operating unit etc.
If it is assgined to an item, then we always
buy that item from that particular supplier.
 If is is assigned to an Inventory
Organization, then all the item in that
particular inventory org, will
be sourced from that particular supplier.
If is is assigned to an Opearting Unit, then
all the item in all inventory orgs of that
operating unit will
be sourced from that particular supplier.*/

--At what point will the sourcing rules,come

into picture. ??

SELECT * FROM mrp_sr_assignments_v

--------------------------------

/* QUOTATIONS & RFQ's : All the Quotations

and RFQ' go into the po_headers_all table
with
type_lookup_code ='QUOTATION'.
An RFQ(A Request for quotation is something
which the company sends to the supplier
requesting them for quotation on the items.
A Quotation is something which a supplier
provides us with(his quotes). A quotation
could be in response to an RFQ or may not be.
*/

select * from po_headers_all where

type_lookup_code ='QUOTATION'

select * from po_lines_all where po_header_id

= 51604

-- Quotations
select * from po_headers_all
where type_lookup_code ='RFQ'
and po_header_id = 51608

select * from po_lines_all where po_header_id

= 51608

/* Blanket Purchase Agreement (BPA's) we did

see how a standard purchase order.
A typical purchase order will have a
header,lines, shipments and distributions.

A Blanket Purchase Agreement is just like a

purchase order with the item defined
at a pre-negotiated price and which will
have the begin and end dates.
 However in the blanket purchase
agreement,we will not have any delivery
schedules as
we dont have them yet.
from the PO screen, the moment we choose
the BPA, the shipments button will not
appear,however it will be there for a PO.
As mentioned above, typically
the Purchase Order Header information will
go into po_headers_all,
The purchase order lines information will
go into po_lines_all,
the purchase order shipment information
will go into po_line_locations_all
(i.e the time and location, need_by , the
location where this needs to be shipped).
These locations are usually the inventory
locations.
the purchase order distribution
information will go into po_distributions_all
(code_combination etc).

However in the case of blankets, we wont

have the shipments and hence no
distributions information.
 */

select * from po_headers_all

where segment1 ='19518'
and type_lookup_code ='BLANKET'

select * from po_lines_all where po_header_id

= 51617

-- The following two tables will not have any

records for blankets.
select * from po_line_locations_all where
po_header_id = 51617

select * from po_distributions_all where

po_header_id = 51617

1) What does it mean to create a purchase

order only with the item category and without
mentioning the inventory item??

2)What is an ASN and ASBN ?

ASN is Advanced Shipment Notice. An ASN is
sent by the supplier to the receiver
indicating
 that a shipment is coming or ison its way.
The ASN is usually sent in an EDI or XML
message format.
ASBN is a Advanced Shipment and Billing
Notice. Usually a supplier might the invoice
and
tax information as well along with the other
information,then it is called ASBN.

3) What are the sequences of events in

ASN(Advanced Shipment Notice) ?
The sequence of events are
A shipment authorization like PO is sent to
Supplier (If any errors,an app advice is
sent to supplier)
Supplier sends the ASN via EDI or XML.
ASN is entered and verified via Receiving
Open Interface.
Goods arrive.
ASN vs Receipt quantities are compared(If
any errors,an app advice is
sent to supplier)

4) What is EDI(Electronic Data Interface ) ?

 EDI is an electronic communication mechanism
between two computers(they could be different
kinds of computers as well). EDI messages
will have a special format with header ,body
and trailer. The EDI software has mainly two
components , translator and Mapping tool.
So EDI software needs to be implemented by
both the trading partners.
The EDI example can be explained best with
the following seuqnce.
A buyer downloads a PO from his ERP system
into a text file.
EDI will translate the above text file into
a EDI format file. During the translation
it will use the mapping rules.
EDI software control comm software and a
communication is established to the supplier.
The file can be sent either to a mailbox,
ftp site etc.
At the supplier end, the EDI software will
re-translate into a usable format for the
supplier to upload the data into their
system.

Hence think about EDI as a communication

format.
5) What is Pay on Receipt functionality.

Pay on Receipt is basically a way of

creating the Payables Invoice once a receipt
is made against a PO. The following steps
sumarizes the required steps.
-- Ensure that supplier ,site is set up
as Pay site, Primary Pay has been set,
On Purchasing tab at site level, pay on
receipt is set in self billing region.
-- Run "pay on receipt autoinvoice"
concurrent program and ensure that you
correctly
set the Aging period parameter carefully
so that the receipt is picked up.
-- After the "pay on receipt
autoinvoice" completes, it creates invoices
in the invoice
interfaces table and the Payables Invoice
Import program is automatically kicked off
which
create AP Invoices.

This is one way of creating Invoices in the

Payables System.
 This process is also called as Self Billing
or Evaluation Receipt Settlement(ERS).

6) What is a Supplier Item Catalog?

A Supplier Item catalog is a database
consisting of different kinds of information
like
-Any Negotiated sources, like if there
are any blanket purchase agreements,GBA,
quotations etc
-Which items has been purchased from
which suppliers(i.e historical purchases)
-Sourcing Rules
And the Supplier Item Catalog can be
invoked from different places like Navigator
or from the PO or requisition form and then
make a decision as who should be
supplier for your PO or requisition.

7). What are the key fields that you mention

in the purchase orders ?
items, quantity, cost, schedule,
distributions.
Based on different things that are put in,
they are classified as
different orders
8) What is the difference between standard
and planned purchased order?
Standard Purchase Order is when you
want to make a one-time purchase of items and
when you know
the items, quantity, cost, schedule,
distributions.
Planned Purchase Order is a long term
agreement to buy a product from a single
source. You can also
have a scheduled release for a
planned purchase order.

9) What is the difference between blanket

purchased agreement(BPA), Contract purchase
agreement & Global BPA.
Blanket Purchase Agreement is an
agreement with the supplier to purchase a
product/items at a
predetermined prices between two
specific dates.
Global Purchase Agreement is like a
BPA however this is for an enterprise-wide
purpose. For ex, you can negotiate
 with the supplier, based on your
whole company's global purchasing
requirements. That is you can
centralize the buying activity for
your whole enterprise by having a global
agreement.
Then the enterprise organizations can
access this global agreement to create
purchase order that
leverage these pre-negotiated prices
and terms.
You will generally have releases(not
shipments) for BPA's and Global BPA's.
Contract purchase Agreement : You
create contract purchase agreements,with your
suppliers to agree
on specific terms and conditions
without indicating the goods and services
that you will be purchasing.
You can later issue standard PO's
against the contract Purchase agreements.

10). What are sourcing rules ??? write in

great details .
Sourcing Rules let you specify how to
replenish items in an organization.
11). What is a RFQ and quotation ?
RFQ : A RFQ is a request for quotation.
RFQ's once created can be transmitted to
the supplier by fax, phone ,isupplier portal
etc.

Quotation : A quotation from a supplier is

in response to a RFQ or it may not be.
A quotation typically has a line and the
line will have a price break. Only after
you create a price break, the approve button
is enabled.
You can approve the quotation any
number of times and the approve button is
enable until the status of the
quotation is closed.
A quotation can be entered manually
,say while on the phone from a supplier as
the supplier provides the
information. Or, it could come
from Purchasing Documents Open Interface.
Once a quotation is created, you
could create a PO or BPA from this quotation.

12). What are Supplier lists and what are

they used for?
 Supplier lists are not ASL's.
Supplier lists are basically different kinds
of lists
with each list typically corresponding to a
category for ex, you might create
a list like Monitor and in that list gives
all the suppliers who would provide
the Monitors. similary hard disk etc.
Typically once Supplier Lists are
created,they are attached to an RFQ and
the RFQ is sent to all those suppliers in
the list. RFQ's once created can
be transmitted to the supplier by either
fax,phone Oracle iSupplier portal etc.

13). Write about the complete flow of the Pay

on Receipt functionality.

Give the example of an item which is

stockable ,but it is not transactable or oe
transactable.
An item is stockable, if it is tangible,for
ex

14). What is Approved Supplier List

functionality,setup etc?
 The approved supplier setup is done at
the inventory item level. At the item level,
you set
whether that particular item should use
approved supplier or not. This is set at
Item => Purchasing options
If you set this flag, then you can only
approve purchase orders , if the supplier is
an approved
supplier.

15). What is the concept of importing the

approved suppliers ,why would you do that.

16). What is the difference between PO Close,

PO Finally Closed and PO Cancel ?
Close is reversible and prevents AP from
matching any of the PO lines until
the Close is reversed.
Cancel will close the PR/PO line and it is
irreversible. Cancel will also
change the Quantity to zero at line level.
In a case where PO line
is partially invoiced, cancel will change
the 'quantity ordered' down
 to equal the 'quantity billed'.
Finally closed will close the PO and it is
irreversible. Finally Closed
will not change the 'Ordered Quantity'
however,it will reverse dollars back to GL.

17). What happened to the 11i Purchasing Open

Document Interface in R12 ??
It has been split into two programs
Import Price Catalog => this is to import
the BPA and quotations primarily.
Import Standard Purchase Orders (Why
would you import standard purchase orders
,this could be
because you have first entered them
into a spreadsheet and then import them into
the
interface table etc).

18) what are the different interfaces that

are there in Purchasing??

Purchasing Documents Open Interface :

Quotations from Supplier
Even ASL entries can be imported
thru this interface,how ??
Receiving open Interface
ASN Transactions
ASBN Transactions

19) In PO, why is that shipment is related to

the distributions. does that mean that each
shipment will have one distribution?
Yes. And when a PO -matched invoice is
created, the same invoice distributions
will be the same as PO distributions.

20). What are the two main important reports

in Purchasing and their usage?
Accrual Reconciliation Report.
Accrual Write-off Report : This report is
typically run for writing off the accruals.
However you can also use this report to find
the unreceipt'ed purchase orders.

21). In the receiving form,what could be the

reason if you are not able to look for a PO?
One thing we can do is to check and see the
what is the PO organization ,then
change to that org, and then open up the rcv
trx and see if there are any receipts.
23). when you create a purchase order, does
the item price comes from a price list?
No. that price is for the customer. This
price is the price we need to pay to the
supplier. And it comes from the
item/supplier catalog and for the catalog see
above.

24). What are two important factors that need

to be taken care of for PO approval.
one is document amount and the account range