Oracle Purchasing Module Step by Step in R12

PURCHASING

 All the Purchasing related activity information will be declared in Purchasing

            

Procure 2 Pay Cycle:

RequisitionàRFQàQuotationà

Quotation AnalysisàPurchasingàReceivingàInvoice à PaymentàReconciliation

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

PO Responsibility

            Step1: Define PO Responsibility

                        Nav: System administratoràSecurityàResponsibilityàDefine

            Step2: Assign PO options to the PO Responsibility

                        Nav: System administratoràProfileàsystem

            Step3: Assign PO Responsibility to User

                        Nav: System administratoràsecurityàuseràdefine

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

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

Nav: KK POàSetupàOrganizationàFinancial Option

2. Purchasing Options: It will be shared by the Purchasing applications

Nav: KK POàSetupàOrganizationàPurchasing Option

     3. Receiving Options: This option will be shared by Inventory, Purchasing and Order

                                           Management

               Nav: KK POàSetupàOrganizationàReceiving Option

Employee:

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

Step1: Define a Job

           

Nav: KK HRàWork structureàJobàDescriptionàNew (A)

Step2: Create Employees

           

             Nav: KK HRàPeopleàEnter and maintain

Step3: Assign Job to be Employee

           

            Nav: KK HRàPeopleàEnter 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: KK HRàPeopleàEnter and maintain

Step5: Create User and assign Employees to the User

           

                        Nav: System administratoràSecurityàUseràDefine

            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: KK poàSupplier BaseàSupplier

           

            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: KK InvàSetupàFlexfieldsàkeyàSegment

Application: Inventory                   Flexfield Title: Item Category

Add New:       KK ITEM go to Segment

1. Family        family             Segment1        item categories

2. Class           Class               Segment2        Item Class Category

                       

             (√) Enable Freeze Flexfield DefinitionàCompile (2 times)

Item Category Values

Step1.1: Define Values

            Nav: KK-InvàSetupàFlexfieldà KeyàValues

                       

Application: Inventory

                        Title:    Item Category

                        Structure: KK ITEM

                        Segment: Family         goes to find

Add new Values

KK Electricals           KK Electricals           KK Electricals

KK Furniture             KK Furniture             KK Furniture

                       

                                    SAVE

Step 1.2 Class Values

                       

                        Same Navigation

Nav: Go toàviewàfindàsegmentàClassàindependent valueà KK ElectricalsàFind

Add new values

Laptop             Laptop             Laptop

LED TV          LED TV          LED TV

           

                                    SAVEàExit

Category Codes: Category codes are used to categories the Item

            Step1: Define Category Codes

                       

            Nav: KK-INVàSetupàItemàCategoryàCategory CodesàNew

KK ITEM      KK ELEC LAPTOP             KK ELEC LAPTOP

KK ITEM      KK ELEC LEDTV               KK ELEC LEDTV  

Category Set: It is used to group the values categories

           

            Step1: Define Category Set

            Nav: KK INVàSetupàItemsàCategoriesàCategory setsàOrganization (Win)à KK SOFTWARE ORGàOK

            Category Set (Window)

            Name: KK Category set

            F Structure: KK ITEM

            Default Category: KK ELEC LAPTOP

            (√) Allow Multiple Item Category

            Category

KK ELEC LED TV

           

            SAVEàClose

Create Item

        Step1: Define Item

                       

                        Nav: KK INVàItemsàMaster 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)àgo to TOOLSàCategoriesàCategory Assignment (Win)

Category set               Control Level             Category

KK Category set        Master                         KK ELEC LAPTOP

                        SAVEàCloseàClose

Open PO Periods

Nav: KK POàSetupàFinancialàAccountingàControl Purchasing Periods

Document Types: It will determine the futures of various Purchasing

                                                Documents.

            Step1: Define Document Type

                                   

                        Nav: KK POàSetupàPurchasingàDocument Types

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

            Step1: Define Approval Limits

                        Nav: KK POàSetupàApprovalà Approval Groups

Operating Unit: KK 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: KK POàSetupàApprovalà Approval Groups

Operating Unit: KK 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: KK POàSetupàApprovalàApproval Assignments

            Step1: PO CLERK

           

                        Operating Unit: KK Software

                        Job:      KK POCLERK

Note: Add the EIGHT Approval Assignments

Nav: KK POàSetupàApprovalàApproval Assignments

            Step2 PO MANAGER

           

                        Operating Unit: KK Software

                        Job:      KK 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: KK POàSetupàPersonalàbuyer

Add BuyeràSave

Define a Buyer i.e. emp2 as buyer

           

                        Nav: KK POàSetupàPersonalàbuyer

Add BuyeràSave

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 àHeader

Lap Top                10*10000=100000àLine

                                                                                                                          Distribution

                                                                                                                       

            They two types of Requisition 1. Internal Requisition

                                                             2. Purchase Requisition 

           

1. Internal Requisition: Internal Requisition will be created by Employee and send to the where house to adjust items internally
2. 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: KK POàRequisition

            Operating Unit: KK Software

            Type: Purchase Requisition

A.    Go to Lines (T) [ check Source, Details, Currency,)

B.     Go to distribution àAccount(T)àenter Amount and AccountàSaveàClose

C.     Come to Requisition(Win)àApproveàEnable Submit for Approval, PrintàOk

Step2: Query the Purchase Requisition to check the Approval status

                        Nav: KK POàRequisitionàRequisition Summary

           

                        Operating Unit: KK 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 RFQ’s

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

1. 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: KK POàRFQ QuotationàRFQ

      Operating Unit: KK 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

     

                                          CloseàSave

                              Go to SuppliersàRFQ Supplier 1

Seq            Supplier           Site

1                Sony                Sony hyd

                                         

                                                      Close

Come to RFQ (Win)

                 

                              Status: Active

                                         

Close the Application

Step2: Print RFQ

            Nav: viewàRequestàSubmit a new requestàselect single requestàok

                        Name: Print RFQ Report (Land Scope)

                                   

                                    Operating Unit: KK Software

                                                Parameters: all

                                                            From 1 to 1àok

View àRequestàfindàenter

                                                  

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: KK POàPurchase OrderàAuto 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

1. Manual Creation: This manual used to Catalog Quotation

Step1: Create Catalog Quotation

           

Nav: KK POàRFQ and QuotationsàQuotations

Operating Unit: KK Software           Type Catalog

Supplier: Sony                                     Site: Sony Hyd

Go to Item (T)

More (T) àgo for àPrice breaksà More (T)

                                                                        Status: Active

                                                                       

                                                                         Approve

Note: Quotations are created by only Buyers.

  

Purchase Orders: It’s 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

1. Header
2. Lines
3. Shipment
4. Distribution

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

1. Manual Creation:

1. Standard Purchase Order: it’s 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: KK POàPurchase OrderàPurchase Order

Operating Unit: KK 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 Controlàgo to distributionàsave

Distribution àcome to More (T), go to ApproveàOK.

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: it’s 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: it’s 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: KK INVàA/c ing Close CycleàInventory A/c ing Periodsà KK SoftwareàInventory A/c (Win) àchange month status i.e. open

Sub inventory:

           

                        Step1: Define Sub inventory

                                   

                                    Nav: KK INVàsetupàOrganizationàSub inventoryàSub inventory summary (Win) àOpenàSub Inventory

Name: KK Sub Inv                            Description: KK 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: KK InvàOn Hand AvailabilityàOn Hand QuantityàQuery Material (W) àFindàMaterial 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: KK POàPurchase OrderàPurchase Orderà Purchase Order (W)

            PO Receipt: 1àgoes to Shipment, come to receiving controls àenable Receipt Routing is Direct DeliveryàOK

                        Go to Status (T)

Num    status   ordered                        received                       excel                bill

  1                       10                                   0                               0                     0

Close àClose

Step2: Receive the goods

                        Nav: KK POàReceivingàReceiptsà KK SoftwareàOK

Step3: Check the receiving transaction status in the remaining transaction summery window

            Nav: KK POàReceiving àReceiving Transaction Summary

Step4: Check the received Quantity in the purchase order

            Nav: KK POàPo orderàpo order

Step5: Check the material on hand availability

            Nav: KK invàon hand availabilityàon 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: KK POàPurchase orderàPO Order

            Step2: Received the goods at one place

                        Nav: KK POàReceiving à Receipts à KK software orgàok

Step3: Check the receiving transaction status in the receiving transaction summary window

            Nav: KK POàReceivingàreceiving transaction summary

Step4: Delivery goods the final destination

            Nav: KK POàReceivingà receiving transaction

Step5: Check the receiving transaction status in the receiving transaction summary window

            Nav: KK POàReceivingàreceiving 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 administratorà SystemàPeople

            Step2: Create the purchase order with receipt routing standard receipt

                        Nav: KK POàPurchase orderàPO Order

            Step3: Received the goods at one place

                        Nav: KK POàReceiving à Receipts à KK software orgàok

Step4: Check the receiving transaction status in the receiving transaction summary window

            Nav: KK POàReceiving à Receipts à KK software orgàok

Step5: Inspects the goods

            Nav: KK POàReceivingàreceiving transaction

Step6: Check the receiving transaction status in the receiving transaction summary window

            Nav: KK POàReceivingàreceiving transaction summary

Step7: Delivery the goods to the final destination

            Nav: KK POàReceivingàReceiving Transaction

Step8: Check the receiving transaction status in the receiving transaction summary window

            Nav: KK POàReceiving à Receiving Transaction summary

Returns: It is used to record the returns goods information

            Step1: Check the material on hand availability

                        Nav: KK invàon hand availabilityàon hand quantityà KK soft org

            Step2: Return the goods to supplier

                        Nav: KK POàReceiving àReturnsà KK Soft org

            Step3: check the on hand availability

                        Nav: KK invàon hand availabilityàon hand quantityà KK soft org