Oracle Apps (SCM): Overview of Purchasing in Oracle Apps

http://bpcblogsoracle.blogspot.com/2012/10/overview-of-purchasing-in-...

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Oracle Apps (SCM): Overview of Purchasing in Oracle Apps

http://bpcblogsoracle.blogspot.com/2012/10/overview-of-purchasing-in-...

Quotaons window, or copy the quotaon from an RFQ. Using Quotation for Purchase Order When you create a purchase order (manually or from requisions), you can use the Supplier Item Catalog window to retrieve quotaon informaon. (The Supplier Item Catalog window can include quotaons sent to you by your supplier through the Purchasing Documents Open Interface.) Purchasing provides all your approved quotaon shipment informaon for a specic item or manufacturing category. You can copy this quotaon shipment to an exisng blanket purchase agreement or standard purchase order when you add this item or purchasing category to a purchase order line. You can sort this quotaon informaon according to your needs, using criteria such as price or quanty. You can easily evaluate the source that is best for an item.

Aer you select the quotaon shipment you want to use, Purchasing copies the item unit price, quanty, unit of measure, supplier product number, inspecon required status, receipt required status, quotaon number, quotaon type, and supplier quotaon number on your purchase order. Purchasing also copies the quotaon item descripon on your purchase order if you dene your items to do so. Purchasing automacally warns you when the terms and condions of the quotaon are dierent from the terms and condions of your purchase order. The original purchase order terms and condions remain unchanged. Types of Quotations There are three types of quotaons and RFQs that come with Purchasing by default: Bid: Used for a specic, xed quanty, locaon, and date. For example, a Bid would be used for a large or expensive piece of equipment that youve never ordered before, or for an item that incurs transportaon or other special costs. You cannot specify price breaks for a Bid quotaon or RFQ. Standard: Used for items youll need only once or not very oen, but not necessarily for a specic, xed quanty, locaon, and date. For example, you could use a Catalog quotaon or RFQ for oce supplies, but use a Standard quotaon or RFQ for a special type of pen you dont order very oen. A Standard quotaon or RFQ also includes price breaks at dierent quanty levels. Catalog: Used for highvolume items or items for which your supplier sends you informaon regularly. A Catalog quotaon or RFQ also includes price breaks at dierent quanty levels. For all three types, you can dene eecvity dates at the header level. For Catalog and Standard quotaons, you can also specify eecvity dates for individual price breaks. (For a Bid, you cannot specify eecvity dates at the shipment level.) You can also dene your own RFQ or quotaon types using the Document Types window.

Purchase Order
Purchasing provides the Purchase Orders window that you can use to enter Standard and planned purchase orders as well as Blanket and Contract purchase agreements. You must be dened as a buyer to use this window. Purchasing provides you the features you need to sasfy the following purchasing needs. You should be able to: Review all of your purchases with your suppliers to negoate beer discounts Create purchase orders simply by entering a supplier and item details Create standard purchase orders and blanket releases from both online and paper requisions Create accurate and detailed accounng informaon so that you charge purchases to the appropriate departments Check your funds availability while creang purchase orders. Review the status and history of your purchase orders at any me for all the informaon you need Print purchase orders exibly by using a number of print opons Inform your suppliers of your shipment schedule requirements Record supplier acceptances of your purchase orders. You always know whether your suppliers have received and accepted your purchase order terms and condions Create your purchase orders by providing a quanty and price for each item you are ordering. Alternavely, you should also be able to create your purchase order simply by providing an amount if you are ordering a service that you cannot break down by price and quanty Purchase Order Types There are mainly 4 types of Purchase Orders Standard Purchase Order Blanket Purchase Agreements Contract Purchase Agreements Planned Purchase Orders

Standard Purchase Order

You generally create standard purchase orders for oneme purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, esmated costs, quanes, delivery schedules, and accounng distribuons.

Blanket Purchase Agreements (BPA)

You create blanket purchase agreements when you know the detail of the goods or services you plan to buy from a specic supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negoated prices for your items before actually purchasing them. You can issue a Blanket release against a BPA to place the actual order (as long as the release is within the blanket agreement eecvely dates).

Contract Purchase Agreements

You create contract purchase agreements with your suppliers to agree on specic terms and condions without indicang the goods and services that you will be purchasing. You can later issue standard purchase orders referencing your contracts.

Planned Purchase Orders

A planned purchase order is a longterm agreement comming to buy items or services from a single source. You must specify tentave delivery schedules and all details for goods or services that you want to buy, including charge account, quanes, and esmated cost. You can issue scheduled releases against a planned purchase order to place the actual orders. If you use encumbrance accounng, you can use the planned purchase order to reserve funds for long term agreements. Posted by Bishnu Prasad Choudhury at 4:59 AM

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Oracle Apps (SCM): Overview of Purchasing in Oracle Apps

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