Purchasing Events/Functionalities/Documents

There are three types of RFQs Request For Quotation

Business

1. Standard RFQ: It is used for the procurement of an item based on our own requirement and here we get price break where we can bargain for more discount 2. Bid RFQ: It is used for procurement of regular items here we get shipment where the item has to be sent 3. Catalog RFQ It is used for the procurement of an item here most of the item information will be available on supplier catalog and here also we get price break

Like RFQ there are three types of quotations 1. Standard quotation: 2. Bid quotation: 3. Catalogue quotation: ` After doing Quote Analysis we can select one best quotation. After we will release purchase orders for a particular item. There are 4 types of purchase orders

1. Standard purchase order: It is used for the procurement of an item, here we know the item,qty,price, need-by-date, and also shipment where the item has to be sent. 2. Planned purchase order: It is used for procurement of an item here we know the item,qty,price, need-by-date, and also shipment but supplier will not send the item based on planned purchase order. Supplier will send item only after releasing the planned purchase order to the supplier. 3. Blanket purchase order: Blanket purchase agreement is the agreement between supplier and organization for an amount agreed under some terms and condition. Here we know the item and price. We dont know the qty, need-by-date, and shipment and also here we can get a price break where we can get more discount. The supplier will send it item after releasing the blanket purchase agreement to the supplier. 4. Contract purchase order: Contract purchase order is an agreement between supplier and organization for an amount under some terms and conditions. Here we dont know the item, quantity, price, need-by-date, and also shipment. We have to raise the standard purchase order against contract purchase agreement and linkup to agreement in the reference document tab we have to attach contract purchase order.

Types of Quotations and RFQs

There are three types of quotations and RFQs that come with Purchasing by default:

Catalog: Used for high-volume items or items for which your supplier sends you information regularly. A Catalog quotation or RFQ also includes price breaks at different quantity levels. *

Standard: Used for items you'll need only once or not very often, but not necessarily for a specific, fixed quantity, location, and date. For example, you could use a Catalog quotation or RFQ for office supplies, but use a Standard quotation or RFQ for a special type of pen you don't order very often. A Standard quotation or RFQ also includes price breaks at different quantity levels. *

Bid: Used for a specific, fixed quantity, location, and date. For example, a Bid would be used for a large or expensive piece of equipment that you've never ordered before, or for an item that incurs transportation or other special costs. You cannot specify price breaks for a Bid quotation or RFQ.

For all three types, you can define effectivity dates at the header level. For Catalog and Standard quotations, you can also specify effectivity dates for individual price breaks. (For a Bid, you cannot specify effectivity dates at the shipment level.)

You can also define your own RFQ or quotation types using the Document Types window

Purchase Order Types

Purchasing provides the following purchase order types: Standard Purchase Order, Planned Purchase Order, Blanket Purchase Agreement, and Contract Purchase Agreement. You can use the Document Name field in the Document Types window to change the names of these documents. For example, if you enter Regular Purchase Order in the Document Name field for the Standard Purchase Order type, your choices in the Type field in the Purchase Orders window will be Regular Purchase Order, Planned Purchase Order, Blanket Purchase Agreement, and Contract Purchase Agreement.

Standard Purchase Orders

You generally create standard purchase orders for one-time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known.

Blanket Purchase Agreements

You create blanket purchase agreements when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them. Blanket purchase agreements can be created for a single organization or to be shared by different business units of your organization (global agreements). You can encumber funds for a blanket purchase agreement.

Global Blanket Agreements

You may need to negotiate based on an enterprises' total global purchase volume to enable centralizing the buying activity across a broad and sometimes diverse set of businesses. Using global agreements (a special type of blanket purchase agreement), buyers can negotiate enterprise-wide pricing, business by business, then execute and manage those agreements in one central shared environment. Enterprise organizations can then access the agreement to create purchase orders that leverage pre-negotiated prices and terms. You can encumber funds for a global agreement.

Blanket Releases
You can issue a blanket release against a blanket purchase agreement to place the actual order (as long as the release is within the blanket agreement effectivity dates). If you use encumbrance accounting, you can encumber each release.

Contract Purchase Agreements

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 purchase orders referencing your contracts, and you can encumber these purchase orders if you use encumbrance accounting.

Global Contract Agreements

You can use global contract agreeements (a special type of contract purchase agreement) to centralize a supplier relationship. Buyers throughout the enterprise can then leverage this relationship by referencing this global contract agreement in your standard purchase orders.

Planned Purchase Orders

A planned purchase order is a long-term agreement committing to buy items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities, and estimated cost.

Scheduled Releases
You can issue scheduled releases against a planned purchase order to place the actual orders. If you use encumbrance accounting, you can use the planned purchase order to reserve funds for long term agreements. You can also change the accounting distributions on each release and the system will reverse the encumbrance for the planned purchase order and create a new encumbrance for the release.

Purchase Order Types Summary

Standard Purchase Planned Purchase Blanket Purchase Agreement Contract Purchase

Order Terms and Yes Conditions Known Goods or Services Known Pricing Known Quantity Known Account Distributions Known Delivery Schedule Known Can Be Encumbered Can Encumber Releases Yes Yes Yes Yes Yes Yes Yes Yes Yes

Order Yes Yes Maybe No No Yes No No No No

Agreement

Yes Yes N/A

Maybe Yes Yes

No Yes Yes

No No N/A

Internal requisitions provide the mechanism for requesting and transferring material from inventory to other inventory or expense locations. To use this functionality, you need to have Purchasing, Order Management, Shipping Execution, and Inventory installed. Internal Requisition (after suitable approval) will directly result in the generation of a sales order in the Order Management system through the Order Import process in Order Management

Purchase requisition A purchase requisition is created when we need to procure goods and services from a supplier. Using a purchase requisition, we can create an RFQ document and then create a purchase order. A purchase requisition provides us with workflow approval

so that the document created by a requester automatically routes over to an approver. Internal requisition An internal requisition is created when we need the goods internally within our organization. On the basis of an approved internal requisition, an internal order is created. We can transfer the goods from one inventory organization to another. We can issue from inventory on a particular expense account using an internal requisition.

Purchasing Key Functionalities

1 2 Requisition Internal Requisition Purchase Requisition RFQ - Request For Information Standard RFQ Bid RFQ Catalogue RFQ Purchase Order Standard Purchase Order Planned Purchase Order Blanket Purchase Order Contract Purchase Order Receipts Standard Receipts Receipt - Inspection Required Receipt - Direct Delivery

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