Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 2

Oracle E-Business Suite Purchasing

Defaulting Rules in Purchase Orders
and Agreements: For Better
Configuration and Ease of Use
An Oracle White Paper
April 2014


Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 3

Defaulting Rules in Purchase Orders and
Agreements: For Better
Configuration and Ease of Use
INTRODUCTION
In todays business landscape, organizations adopt timely and fast execution of their acquisition-
related operations. This helps to complete their procurement cycles efficiently. In order to be
effective, a procurement business user needs to be supported by systems that provide real-time
information. The system also ensures that procurement processes are effectively managed. In order
to reduce Total Cost of Ownership (TCO), faster time-to-market and increased customer
satisfaction, organizations attempt to get the most value out of their procurement systems.
Oracle Purchasing (part of the Oracle Procurement family) automates the entire purchasing lifecycle
and supports a broad range of purchasing setup framework including defaulting rules, document
styles and document types, account generation, autocreating purchase orders from requisitions, and
more. Thus, users can track and automate their purchasing activities efficiently.
You can also map your business requirements to the system using the extensive setup framework that
Oracle Purchasing supports for users and implementers.
You can standardize your purchasing processes by using the defaulting rules that Oracle Purchasing
provides. Oracle Purchasing uses integral defaulting rules to enable users to get and use the most
required purchase order information. In order to simplify purchase order creation,users and
implementers can define a series of business rules to automatically default/derive values for the
purchase order attributes. This helps to improve productivity (with shorter data entry cycles),
Attribute defaulting also enables users to attain data and document consistency and alignment across
the organization.
This white paper aims at providing insights into the value derivation used in purchase order, blanket
purchase agreements for selected field values. This white paper enables customers, support, sales and
development to gain an understanding about the defaulting of purchasing document field (attribute)
and how document creation time and effort is minimized.
DERIVING ATTRIBUTE VALUES IN ORACLE PURCHASING
Business users can specify varied sources for the value of the purchase order and agreement fields.
For example, the Communication Method field derives its value first from the Communication
Method field of an agreement. If there is no entered agreement in the order document, then the
Communication Method field value is derived from the supplier site. The system uses a sequence to
derive the value for the field from different sources. These derived values enable users to spend less
time in purchase order or agreement creation. Thus, having derived values that default in purchase
order or agreement attributes results in greater productivity and is less error-prone.
In order to simpli fy the
process of creati on of a
Purchase Order the users
can defi ne a seri es of
busi ness rules and the
val ue for these attri butes
can automaticall y be
deri ved/defaulted whi le the
document i s bei ng created.
Hence this ai ds i n improvi ng
producti vit y as well as
consi stency and ali gnment
across the organizations.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 4
GUIDELINES FOR DEFAULTING IN PURCHASING DOCUMENTS
The purchase order/agreement defaulting framework uses the following best practices (or standards):
1. The term From Source Document in the defaulting rules table refers to a Blanket Purchase
Agreement (BPA) or Contract Purchase Agreement (CPA) or Quotation, as appropriate. Some
definitions are as follows:
a. BPAs are agreements made with suppliers when goods or services are negotiated for a
specified period without indicating exact delivery schedules.
b. CPAs are agreements made with suppliers to agree upon specific terms and conditions
without specifying goods and services.
c. A quotation is sent by suppliers to the purchasing organization with the requested
pricing and other information for item(s) or services.
Later purchase orders are created by referring above documents as a source document to default
the values for some of the attributes. This simplifies the process of creation of a Purchase Order.
2. The following acronyms are used in the defaulting rules table:
BWC Buyer Work Center
PDOI Purchasing Document Open Interface
ASL Approved Supplier List
3. You can create Purchase Orders and Agreements in the following ways in Oracle Purchasing:
Create Purchase Orders/Agreements manually from Buyer Work Center (BWC).
AutoCreate Purchase Orders and Agreements from Requisition (Demand Workbench in
Buyer Work Center).
Import Purchase Orders/Agreements using the Purchasing Document Open Interface
(PDOI).This is used to create Purchase Orders/Agreements in bulk.
Use PO Create Document workflow to create purchase orders automatically from approved
requisition lines. The PO Create Documents workflow performs the same tasks as
AutoCreate does, except that it works without user intervention.
Use Webservices to create purchase orders and agreements.
Use Forms to create purchase orders and agreements.
Although there are different methods to create purchase orders and agreements, the defaulting
rules remain the same, with the exception of some fields. Wherever there is a difference in
behavior or profile introduced for a specific program (BWC, PDOI or AutoCreate), it is
specified in the defaulting rules table.
4. If the defaulting takes place from Preferences Purchasing Defaults in the defaulting rules table,
this defaulting behavior is only applicable to the manual creation of Purchase Orders and
Agreements from Buyer Work Center (BWC) and is not applicable to PDOI, AutoCreate flows.
Referri ng Source document
in purchase orders improves
compliance, elimi nates
manual interventi ons and
simpl ifi es the order creati on.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 5
5. The defaulting sequence is in ascending order. Oracle Purchasing looks first for the option
specified as 1 in the defaulting rule set. If there is no value available in the first rule, the system uses
the next rule specified as 2. For example, while defaulting the currency of the purchase order at the
header level, the value for the currency field is derived in the following sequence:
1. Source Document When a source document is referenced in the purchase order.
2. Supplier Site - When a source document is not referenced, the currency of the purchase
order is derived from the supplier site.
3. Supplier - If no value is provided in the supplier site, the value defaults from the suppliers
default currency and
4. General Ledger If no currency is defined in supplier, the currency defaults from the
General Ledger (which is actually the functional currency).
6. When a purchase order is created with single or multiple requisitions that have different currencies,
the Currency field defaults to the value found in the functional currency field of General Ledger.
Note: Functional currency refers to the main currency used to do business transactions by
organizations.
7. When a purchase order is created referencing multiple requisitions that have source document
references, the source document details are defaulted only if it is same across all the requisition lines
selected. For example, if the supplier is the same and the supplier site is different, the system defaults
only the supplier and the buyer needs to enter supplier site in the purchase order.
8. In PDOI, user defined values (in the interface table) take precedence over all the defaulting rules in
most of the cases.
9. This white paper describes the defaulting values for purchase order/agreement fields when these
documents are created using Buyer Work Center, Purchasing Document Open Interface (PDOI),
and AutoCreate. The defaulting rules described in this white paper do not cover the defaulting
behavior of Forms based purchase order and agreement creation. There are chances that the
defaulting behavior is different in Forms.
10. It is the buyers responsibility to negotiate orders/agreements with suppliers, drive compliance,
track the performance of the suppliers, ensure risks are mitigated, and hedge price variances. In such
situations, the buyer has the authority to override the defaulted value for the field while creating
purchase orders.
11. The term From Referenced Requisition in the defaulting rules table refers to Purchase
Orders/Agreement Created through Autocreate or PDOI having requisition reference.

Buyer has the authorit y to
override the defaulted value
for the fi el ds during PO
creation.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 6
LISTS OF ATTRIBUTES THAT HAVE DEFAULT VALUES PURCHASE ORDER
HEADER
Attributes Defaulting Rules
Header
Operating Unit
The operating unit that
owns the transaction.
1. Multiple Organization Access Control (MOAC) is not enabled, and the
Operating Unit value comes from the profile option MO: Operating Unit. This
Operating Unit field value cannot be updated by users.

2. Multiple Organization Access Control (MOAC) is enabled, and the Operating
Unit value comes from the profile option MO: Default Operating Unit. Users
can overwrite this default value and select an operating unit that they have access
to, as defined in the profile option MO: Security Profile.
Note:
One of the two profiles MO: Operating unit (OR) MO: Security profile has to be
specified.
If both MO: Operating unit and MO: Security profile are specified,
MO: Security profile is considered and MO: Operating unit value is ignored.
Status
The stage the document
has reached (Draft,
Approved, etc).
BWC:
1. A new purchase order entered in BWC has a status of Incomplete.

PDOI:
Importing as a new Purchase Order:
1. A new purchase order has a status of Incomplete.
2. The value of the Status field is defaulted to Approved for a Consumption
Advice.
Note: Consumption Advice is a document similar to purchase order and is used
for billing consigned material. It is a formal document used to communicate the
quantity and value of the consigned material consumed in a warehouse to the
supplier. Based on the Consumption Advice, the supplier creates the invoice.

Importing to an existing Purchase Order:
The status of the importing document and current document along with the final
status of the current document is as follows. For example, if the status of the
importing document is Incomplete, and the status of the current document is
Approved, the final status of the current document is Requires Reapproval.
Status of the
Importing
Document
Status of the
Current
Document
Final Status of
current
document
Incomplete Incomplete Incomplete
Incomplete Rejected Rejected
Incomplete Approved Requires
Reapproval
Approved Incomplete Incomplete
The term From Referenced
Requisiti on i n the defaulti ng
rules tabl e refers to
Purchase
Orders/Agreements Created
through Autocreate or PDOI
having requisi ti on reference.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 7
Approved Rejected Rejected
Approved Approved Approved
Initiate Approval Incomplete Approved
+

Initiate Approval Rejected Approved
+

Initiate Approval Approved Approved
+

Note:

+
Status

Initiate Approval will launch the approval workflow background process.
An approval authorization rule drives the status of the purchase order.
Please note that an importing document with a Rejected status cannot be
imported.

AutoCreate:
1. A newly created purchase order will have a status of Incomplete.
2. The status of the autocreated purchase order remains Rejected or Incomplete
when new lines are added to the existing purchase order.
3. The status of the autocreated purchase order changed to Requires Reapproval
when new lines are added to the existing approved purchase order.
Supplier
The provider of goods
and services for whom
the purchase order is
created.
1. From Source Document
2. From referenced requisition.(Not defaulted in PDOI)

Note: When a purchase order is created referencing multiple requisitions that
have source document references, the supplier is defaulted only if it is the same
supplier across all the selected requisition lines.
Supplier Site
Suppliers business
location from where
goods or services are
supplied
1. From Source Document
2. From referenced requisition. (Not defaulted in PDOI)
Note: Defaulted only when one and only one valid supplier site for the Supplier
is found.
Note: When a purchase order is created referencing multiple requisitions that
have source document references, the supplier site is defaulted only if it is the
same supplier site for the same supplier across all the selected requisition lines.
Supplier Contact
Person responsible for
supplying goods or
services on behalf of the
supplier organization.
1. From referenced requisition.
Note: Defaulted only when one and only one active supplier contact for the
Supplier Site is found.
Communication Method
The mode by which a
specific communication is
sent or received, that is,
email, phone, fax, or
letter.
1. EDI, if EDI is enabled.
2. XML, if XML is enabled.
3. From Supplier Site.
Currency 1. From Source Document
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 8
2. From Supplier Site
3. From Supplier
4. From General Ledger (Navigation: Purchasing-> Setups-> Organizations
->Accounts Manager-> Accounting Setups)
Note: When a purchase order is created with multiple requisitions that have
different currencies, the value of the Currency field defaults to the functional
currency from General Ledger.
Buyer

1. The value for the Buyer field is defaulted from the Employee ID of the
current user name (current user is a buyer).

Note: For Purchase Orders created through PDOI, buyer field is not defaulted
however it is a mandatory field Therefore PDOI needs to have buyer field
populated with a valid value.
Header Terms
Bill-To Location
A location in the buying
organization where
supplier invoices are sent.

1. Defaulted from the purchasing document (if updating the existing document )
2. From Source Document
*
(* Refer below the table)
3. From Supplier Site
4. From Financial Options (Supplier Purchasing details tab)
Payment Terms

1. Defaulted from the purchasing document (if updating the existing document)
2. From Source Document
*
(* Refer below the table)
3. From supplier site
4. From Supplier
5. From Financial System Parameters (Navigation : Payables Responsibilities
>Setup> Options> Payables System Setup).
Pay on Receipt
- This function creates
supplier invoices
automatically based on
receipts and purchase
orders.
1. From Supplier Site

Note: The value is set to Yes when Pay On Code in Supplier Site is Receipt,
Use or Receipt and Use, otherwise the value defaults to No.
Required
Acknowledgment -
Mentions the method of
supplier acceptance of the
order document.
1. From Purchasing Options (Document Defaults region)
Ship-To Location
- A location where items
are to be shipped to the
buying organization from
1.Defaulted from the document (if updating the existing document)
2. From Source Document
*
(* Refer below the table)
3. The value for Ship-To Location specified in the Preferences - Purchasing
Defaults Page will be defaulted in the purchase order document.
4. From Supplier Site
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 9
the supplier. 5. From Financial Options (Supplier Purchasing details tab)
Ship via
- An indication to a
supplier about the desired
shipping method of
ordered items.

1. Defaulted from the document (if updating the existing document)
2. From Source Document
*
(* Refer below the table)
3. From Supplier Site
4. From Financial Options (Supplier Purchasing Details tab)
Freight Terms
- Negotiated terms
between a buyer and a
supplier to determine
freight charges on goods
ordered.
1. Defaulted from the document (if updating the existing document)
2. From Source Document
*
(* Refer below the table)
3. From Supplier Site
4. From Financial Options (Supplier Purchasing Details tab)
FOB
- The point or location
where the ownership title
of goods is transferred
from the supplier to the
buyer.
1. Defaulted from the document (if updating the existing document)
2. From Source Document
*
(* Refer below the table)
3. From Supplier Site
4. From Financial Options (Supplier Purchasing Details tab)
Transportation Arranger
Organization that
arranges the
transportation of goods
from supplier.
1. From Source Document
*
(* Refer below the table)
2. From Supplier Site
Email
- Email ID of Supplier
Contact
1. From a supplier contact when profile PO: Communication Email Default is
set to Contact
2. From supplier site.
Fax 1. From Supplier contact when Profile PO: Communication Email Default is set
to Contact
2. From supplier site.
Pcard
- Procurement card that is
used as a corporate credit
card to purchase items
directly from a supplier.
1. From the referenced requisition.
Note: Defaulted only if supplier site/supplier matches to the supplier
information of Pcard and document style does not support progress payments.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 10
Rate Type
Predefined or user-
defined currency rate.
1. Defaulted from the document (if updating the existing document)
2. From referenced requisition (with/without source document reference).
3. From Purchasing Options. (Document Defaults region)
Rate Date
- The date on which Rate
is calculated.
1. System Date.
Rate 1. From Currency setup (derived from Rate Type and Rate Date).
* Attributes will be defualted from source document only when source document is
same across all the lines
LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER LINE
Attributes Defaulting Rules
Lines
Line Type
- Determines whether a
purchasing document line
is for goods, services, or
any other type that you
define.
1. Defaults from the referenced requisition.
2. If the Document Style has only one line type, the same line type will be
defaulted.
3. The Line Type in the Preferences - Purchasing Defaults is defaulted in the
order document provided the selected line type is enabled for the document
style.
4. Defaults from Purchasing Options - Document Defaults region, provided the
selected line type is enabled for the document style.
Note: The profile option PO: Default Line Type takes precedence over all of the
above. This profile option is available in Forms only. It is not used in Oracle
Applications Framework pages.
Item 1. From the referenced requisition
Item Rev 1. From the referenced requisition
Job 1. From the referenced requisition
Item Description

1. From the referenced requisition
2.From Item
3. From Job ID
Supplier Item
It is the item number
created by the supplier
organization.
1. From the referenced requisition
2. From Approved Supplier List
Category
Used to group items

1. From the referenced requisition
Defaul ti ng that occurs from
Preferences- Purchasi ng
Defaul ts is appl icabl e to
manual creati on of Orders /
Agreements from Buyer
Work Center. It i s not
appli cable to PDOI and
AutoCreate
.




Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 11
with similar
characteristics.
2. The value for Category specified in the Preferences - Purchasing Defaults
page is defaulted in the order document.
3. The value for category specified in the line type will be defaulted. It will
overwrite the defaulted category from Preferences - Purchasing Defaults
4. If Category is derived from Item/Job then the same should overwrite the
value defaulted from the Preferences - Purchasing Defaults Page or Line Type.
5. From iProcurement Catalog Administrator (Navigation : iProcurement Catalog
Administration ->Schema->Category Mapping)
6. From Items Default Category Sets
(Purchasing->Setups->Items->Categories->Category Sets)
UOM
- The unit in which the
quantity of an item is
expressed.
1.From Source Document
2.From the referenced requisition
3.From Item
4. From Line Type
Price

1.From Source Document
2.From Oracle Advanced Pricing
3.From referenced requisition
4. From Item
5. From Line Type
Transaction Reason
The standard means to
classify or explain the
reason for the
transaction.
1. From the referenced requisition
2. The value for Transaction Reason specified in the Preferences - Purchasing
Defaults page is defaulted in the order document. Values defined in Transaction
Reason window in Inventory (Setup > Transactions > Reasons) are fetched and
displayed in the LOV.

Negotiated
Used to indicate that the
purchase price is
negotiated.
1.From Source Document Set to Yes
2.From Oracle Advanced Pricing Set to Yes
3.From RFQ & Quote Set to Yes
4.From referenced requisition without source document reference; Order
without requisition reference Set to No
Lines Source Document (BPA, CPA)
Document Number
- Agreement Number
(Blanket or Contract)
referred in the order
document.
1.From referenced requisition
(Not derived in PDOI)
2. Approved Supplier List (ASL), if it is not consigned.
Note: Eligible source document number will be defaulted to purchase order
document, if profile option PO: Automatic Document Sourcing to Yes
Line Number
- Line Number of the
Source Document (BPA
or CPA) referred in the
order document.
1. From referenced requisition.
(Not derived in PDOI)
2. Approved Supplier List (ASL), if it is not consigned.
Note: Line Number is defaulted only when Document Number (BPA or CPA)
exists.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 12
Lines Contract
Note: This region is defaulted only if Oracle Project Contracts is installed. Oracle Project Contracts supports
the contract management needs of project driven organizations, including commercial and government
contractors, agencies, and subcontractors. The procurement products can be integrated with Oracle Project
Contracts. You can enter project contract information in this region. If you are using Oracle Project Contracts
you can enter the project Contract number and version
Contract Number
- This is Project Contract
Number
1. Contract Number defaults from the referenced requisition.
2. The value for Contract Number specified in the Preferences - Purchasing
Defaults page is defaulted for the order lines, provided the item is not a
consigned item.
Note: Consigned item is similar to regular item, except that there is no
accounting event that might increase financial liability. When receiving consigned
material, you never match a payables invoice to a consigned receipt.
3. The Contract Number is set to Blank if the item is a consigned item even if
there is a value set for Contract Number in the Preferences - Purchasing Defaults
Page.

Contract Version
1. The value for Contract Version defaults from the referenced requisition.
2. The value for Contract Version specified in the Preferences - Purchasing
Defaults page is defaulted for the order lines, provided the item is not a
consigned item.
3. The Contract Version is set to blank if the item is a consigned item, even if
there is a value set for Contract Version in the Preferences - Purchasing Defaults
page.
Note: Contract Version will be defaulted only when Contract Number exists.
Lines Contractor Defaults
Start Date
1. The value for Start Date specified in the Preferences - Purchasing Defaults
page is defaulted if the Line Type is selected as Rate Based Temp Labor or Fixed
Price Temp Labor for the order document.
End Date
1. The value for End Date specified in the Preferences - Purchasing Defaults is
defaulted if the Line Type is selected as Rate Based Temp Labor or Fixed Price
Temp Labor for the order document.
Lines Item Attributes
Retainage Rate
This rate determines
the percentage of the
amount requested that is
withheld before releasing
payments to the supplier.
1. From Supplier Site
Secondary Quantity
The quantity to transact
1. From Item

Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 13
in the secondary unit of
measure if the item is
under dual unit of
measure control.

Note: This attribute is used if Oracle Process Manufacturing (OPM) has been
implemented. Depending on the selected dual UOM indicator, the Secondary
Quantity is calculated.
Secondary UOM
- Used when the item is
dual UOM controlled.
1. From Item
Note: If Oracle Process Manufacturing (OPM) has been implemented and item
is dual UOM controlled, then the Secondary UOM defaults to the value specified
in the Inventory Item Master.
Grade
- It represents the
requested quality control
grade for the selected
item.
1. From referenced requisition if grade control for the item is not No
Price Type
1. The value for Price Type specified in the Preferences - Purchasing Defaults
page is defaulted in the order document.
2. From Purchasing Options (Document Defaults Region)
List Price
- This is the original
inventory item price and
therefore should be used
as a indicative price.
1. Unit Price of item
2. From Item
3. Defaulted to 1 for Amount based lines.
4. Defaulted as Blank for Fixed Price Temp labor and Rate based temp labor
lines.
5. Otherwise defaulted to 1
Market Price
- The market price that
comes from the Item
Master.
1. From Item
2. Blank for onetime items.
Hazard Class
- To identify categories of
hazardous materials for
international trade
purposes.
1. From the referenced requisition
2. From Item
3. From UN Number (Navigation: Setups-> Purchasing->UN Number)
UN Number
- An identifier for
hazardous material
1. From the referenced requisition
2. From Item
Type_1099 1.From Supplier


Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 14
LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER
SCHEDULE
Attributes Defaulting Rules
Schedules- Shipping
Ship-To Organization
1. Defaults from destination organization of the requisition.
2. If any organization is associated to ship to location.
3. The value for Ship-To Organization specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
4. From Financial Options (Navigation: Financial Options>Supplier>Purchasing
Details>Inventory organization.)
5. The Ship-To Organization is set to Blank if the item is a consigned item
Ship-To Location
- A location where items
are to be shipped.
1. Ship-To Location defaults from the deliver to location of requisition.
2. The value for Ship-To Location specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
3. From Supplier Site
4. From Financial Options (Navigation: Financial Options>Supplier>Purchasing
Details>Inventory organization.)

Need-By Date
- The date by which the
goods or services are
required.
1. From referenced requisition.
2. The Need-By Date value specified in the Preferences - Purchasing Defaults
page is defaulted in the order document.
Promised Date
- The date by which the
supplier is committed to
supply goods or services.
1. The Promised Date value specified in the Preferences - Purchasing Defaults
page is defaulted in the order document.
2. The value of the Need-By date is defaulted if the profile option
PO_Need_By_Promise_Defaulting is set to Yes. This profile option is applicable
only during autocreating the purchase order.
Schedules- Billing
Invoice Close Tolerance
- The percentage
tolerance used to
automatically close a
shipment when
uninvoiced quantity is
within the quantity
tolerance percentage of
the shipment.
1. With consigned items, the Invoice Close Tolerance value is set to 100%
because the consigned shipment is not invoiced.
2. The value for Invoice Close Tolerance specified in the Preferences -
Purchasing Defaults Page is defaulted in the order document.
3. The value for Match Approval Level is defaulted from Item Master
Organization ( Ship To Organization)
4. The value for Match Approval Level is defaulted from the Item Validation
Organization.
5. From Purchasing Options (Document Defaults region)
6. Invoice close tolerances will be set to Blank for RFQ, P-Card referenced lines.
Match Approval Level
- This function
determines whether the
1. With consigned items, the Match Approval Level value is two-way matching,
because the consigned shipment is not invoiced.
2. Complex Purchase orders with advances: the Match Approval Level value for
the Advance shipment is two-way matching
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 15
items on a purchase order
must be received and/or
inspected before the
corresponding invoice
can be paid.
3. The value for Match Approval Level specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
4. The value for Match Approval Level is defaulted from Item Master
Organization ( Ship To Organization)
5. The value for Match Approval Level is defaulted from the Item Validation
Organization.
6.From Supplier
7. From Purchasing Options (Document Defaults region)
Invoice Match Option
- Invoice Match Option is
used by Payables to know
the invoice should be
matched with purchase
order or receipt.
1. For Consigned items and financing pay items, the match option is defaulted to
the value PO.
2. For Oracle Landed Cost Management enabled shipments, the Match option
defaults to the value Receipt.
3. The value for Invoice Match Option specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
4. From supplier site
5. From Supplier
6. From Payables System setup (Navigation: Payables Super User-> Setup->
Options-> Payables System Setup: Control -> Invoice Match Option)
Accrue On Receipt
- This option is used to
indicate when the
accounting entries need
to be sent to the GL
interface.
1 The Accrue on Receipt field defaults to No if the value for P-Card is entered.
2. If Transaction flow is defined in Oracle Inventory for the item and Operating
Unit, then the value is defaulted to Yes.
Note: The transaction flow specifies the operating units and inventory
organizations involved in the financial transactions when goods move from a
source operating unit to a destination operating unit.
3. If a consigned item is entered, the value No is defaulted in the Accrue on
Receipt field.
4. If distribution type is Prepayment, the value No is defaulted in the Accrue on
Receipt field.
5. If the Line Type is enabled with Outside Side Processing, then the value Yes is
defaulted in the Accrue on Receipt field.
6. If the item is a Stockable Inventory item, the value Yes is defaulted.
7. In Purchasing Options, if the Expense Accrual Code is set to:
a) Period End, then the value of the Accrue on Receipt field is set to No
b) Receipt, the value of the Accrue on Receipt field is set to Yes.
Schedules- Receiving Controls
Enforce Ship-To
- This option controls
whether the supplier can
deliver to a location that
differs from the Ship-To
location defined in the
purchase order.
1. From Item.
2. From Supplier.
3. From Receiving Options.
4. For fixed price services/temp labor lines, Enforce Ship-To is defaulted to
Blank.
Allow Substitute 1. From Item.
2. From Supplier.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 16
Receipts
- This option indicates
whether to allow receipt
of defined substitutes in
place of this item.
3. From Receiving Options.
4. For fixed price services or rate based temp labor lines, Allow Substitute
Receipts is defaulted to Blank.
Receipt Routing
- A method of
simplifying transaction
entry by specifying
routing steps for
receipts.
1. When the Line Type is selected as Fixed Price Services/ Fixed Price Temp
Labor/ Rate Based Temp Labor, the receipt routing will be defaulted to Direct
Delivery.
2. The value for Receipt Routing specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
3. From Item.
4. From Supplier.
5. From Receiving Options.
Receipt Close Tolerance
- Purchasing
automatically closes a
shipment for receiving if
it is within the receiving
closing tolerance at the
receiving close point.
1. The value for Receipt Close Tolerance specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
2. From Item.
3. From Line Type.
4. From Receiving Options5. Defaulted with 0 (zero) %.
Over Receipt Tolerance
- This field determines
how Purchasing handles
receipts that exceed the
quantity received
tolerance.
1. The value for Over Receipt Tolerance specified in the Preferences - Purchasing
Defaults Page is defaulted in the order document.
2. From Item.
3. From Supplier.
4. From Receiving Options.
5. Defaulted with 0 (zero) %.
Receipt Days Early
- The number of days
mentioned allows you to
receive the goods before
the promise date or need
by date without warning
or rejection.
1. The value for Receipt Days Early specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
2. From Item.
3. From Supplier.
4. From Receiving Options.
Receipt Days Late
- The number of days
mentioned allows you to
receive the goods after
the Promised Date or
Need-By Date without
warning or rejection.
1. The value for Receipt Days Late specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
2. From Item.
3. From Supplier.
4. From Receiving Options.
Receipt Date Action 1. From Item
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 17
- Determines how
Purchasing handles
receipts that are earlier
or later than the allowed
number of days
2. From Supplier
3. From Receiving Options
Over Receipt Action
- Determines how
Purchasing handles
receipts that exceed the
quantity received
tolerance.
1. From Item
2. From Supplier
3. From Receiving Options
Schedules
Secondary UOM 1.From Source Document
2. From Item
UOM 1. From Source Document
2. From referenced requisition
3. From Item
4. From Line Type
Shipment Number 1. If Payment Type is Advance, Shipment Number is defaulted with a value of 0.
2. If Payment Type is Delivery, Shipment Number is defaulted with a value of 1.
3. Next number in the sequence.
Consigned Flag
- Used to mention if the
item is consigned or not.
1. From referenced requisition.
2.From Approved Supplier List (ASL)
VMI Flag
- Used to mention if the
item is Vendor Managed
Inventory or not.
1. From referenced requisition.
2. From Approved Supplier List (ASL)
Country of Origin
- Used to capture and
update an item's Country
of Origin on the receipt.
1. From Approved Supplier List (ASL)
2. From Supplier Site
Receipt Required Flag 1. For consigned item and advance shipments, Receipt Required Flag is defaulted
to a value of No.
2. Defaulted from Item Master Organization (Ship-To Organization).
3. Defaulted from Item Validation Organization.
4. From Supplier.
5. From Line Type.
6.From Purchasing Options
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 18
Inspection Required Flag 1. For consigned item, pay item, fixed price, rate based temp labor line types and
Advance Shipments, Inspection Required Flag is defaulted to No.
2. Defaulted from Item Master Organization (Ship-To Organization).
3. Defaulted from Item Validation Organization.
4. From Supplier.
5.From Purchasing Options
Transaction Flow
- Specifies the operating
units and inventory
organizations involved in
the financial transactions
when goods move from a
source operating unit to a
destination operating
unit.
1.Defaulted from Inventory Transaction Flow (Inventory responsibility > Setup
>Organization > Intercompany Transaction flows)
Grade 1. Defaulted from referencing requisition if Grade Control for the item is not 'N'.
Secondary Quantity 1. From Item.

LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER PAY ITEM
Attributes Defaulting Rules
Schedules- Pay Item
Type
- Pay Item Type specifies
the way progress needs to
be measured and payment
is to be made.
1. If Value Basis is Quantity, the Type is defaulted to Milestone.
2. If Value Basis is Fixed Price, the Type is defaulted to Lumpsum.
Description 1. For Advance Shipment, Description is defaulted to Advance &LINE_DESC.
For example Description will be Advance Boiler Installation Services.
2. For rest of pay items, description is same as line description.



Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 19
LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES - PURCHASE ORDER
DISTRIBUTION
Attributes Defaulting Rules
Distribution
Destination Type
- Determines the final
destination of the
purchased items.
1. From referenced requisition.
2. If the Item is blank or for Complex PO, Destination Type is defaulted to
Expense.
3. For consigned item /outsourced assembly, Destination Type is defaulted to
Inventory.
4. If there is an Outside Processing item, Destination Type is defaulted to Shop
Floor.
5. If the item is Stockable and Accrue on Receipt is set to No, Destination Type
is defaulted to Expense.
6. If the item is Stockable, and Accrue on Receipt is set to Yes, Destination Type
is defaulted to Inventory.
7. If the item is Non Stockable, Destination Type is defaulted to Expense.
Subinventory
- Subdivision of an
organization which are
unique physical or logical
grouping of items
1. From referenced requisition.
2. The value for Subinventory specified in the Preferences - Purchasing Defaults
Page is defaulted in the order document.

Work Order 1. From referenced requisition.
Operation Reference 1. From referenced requisition.
Distribution Delivery
Requester 1. The value for Requester specified in the Preferences Purchasing Defaults
Page is defaulted in the order document.
2. From referenced requisition.
Deliver To Location
- A location where you
deliver goods previously
received from a supplier
to individual requestors.
1. From referenced requisition
2. The value for Deliver-To Location specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
3. Defaulting Deliver-To Location based on Requester, Ship-To Organization
and Business Group.
Requisition 1. From referenced requisition.
2. The value for Requisition Number specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.

Requisition Line 1. From referenced requisition
2. The value for Requisition Line specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 20

Note: Requisition Line will be defaulted only if Requisition is defaulted.
Distribution Billing
GL Date
- The date used to
determine the correct
accounting period for
your invoice and payment
transactions.
1. If the profile option PO_Autocreate_Date is set to Yes, then the GL Date is
defaulted to the requisition date. 2. The value for GL Date specified in the
Preferences - Purchasing Defaults page is defaulted in the order document. You
can override the Preferences - Purchasing Defaults page values only if the GL
Date is in a closed period.
3. If the profile option PO: Validate GL Period has been set to Redefault, then
the GL Date is defaulted to System Date.

PO Charge Account
- The account to charge
for the cost of the
goods/services in the
purchasing operating unit
1. From referenced requisition.
2. From the Account Generator. For more details about Account Generator See:
Oracle Purchasing Users Guide.
3. The value for PO Charge Account specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.
PO Accrual Account
- The AP accrual account
in the purchasing
operating unit.
1. From referenced requisition.
2. From the Account Generator.
Note: In PDOI, the user defined accrual account can be overridden by the
Account Generator based on the PO charge account.
PO Variance Account
- The invoice price
variance account in the
purchasing operating unit.
1. From referenced requisition.
2. From the Account Generator.
Note: In PDOI, the user defined variance account can be overridden by the
Account Generator based on the PO charge account.
Budget Account 1. From referenced requisition.
2. From the Account Generator.
Note: In PDOI, the user defined budget account can be overridden by the
account generator based on the PO charge account.
Destination Charge
Account
1. From the Account Generator.(Only in case of shared procurement)

Destination Variance
Account
1. From the Account Generator. (Only in case of shared procurement)

Distribution
Recovery Rate
- The recovery rate is the
percentage of tax that
your business can reclaim
for credit.
1. Defaulted from referenced requisition if Tax Recovery Override flag is Yes.
Note: Not available in R12

Rate Type 1. From Header.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 21
Rate Date 1. From Header.
Rate 1. From Header.
Unit Number
- The Unit Number
displays if you are using
the Oracle Project
Manufacturing feature
End item model/unit
number.
1. From referenced requisition.
Destination Organization
- An organization that
receives goods/services
from a given
organization.
1. Defaulted with Ship-To Organization on shipment.
GL Encumbered Period
- The period in which
encumbrance for the
purchasing document
takes place.
1.Based on GL Date
Distribution- Contracts
Contract Line Number
- The number which is
defined in Project
contracts lines
1. Defaulted from referenced requisition, if consigned flag is No
Deliverable Number
- The number which is
defined in Project
contracts deliverable.
1. Defaulted from referenced requisition, if consigned flag is No
Distribution Work Order Details (Defaulted only when Destination Type is Shop Floor)
WIP Job
- A production order for
the manufacture of a
specific quantity of
goods, using specific
materials and resources.
1. From referenced requisition.
WIP Production Line 1. From referenced requisition.
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 22
- The physical location
where you manufacture a
repetitive assembly
usually associated with a
routing.
WIP Operation Sequence
Number
- The number that
indicates the order of
operation in a routing.
1. From referenced requisition.
WIP Resource Sequence
Number
- The number that
indicates the order of a
resource in an operation.
1. From referenced requisition.
Distribution Projects
Note: This region will be defaulted only if any of the following products is installed : Oracle Projects, Oracle
Project Manufacturing, Oracle Grants and Oracle Project Contracts
Project - The unique
number assigned to
project work.
1. From the referenced requisition.
2. The value for Project specified in the Preferences - Purchasing Defaults page is
defaulted in the order document.

Task - A subdivision of
project work
1. From the referenced requisition.
2. The value for Task specified in the Preferences - Purchasing Defaults page is
defaulted in the order document.
Note: Task is defaulted only if a Project is defaulted.
Award - Represents the
source of funding for a
project or a task.
1. From the referenced requisition.
2. The value for Award specified in the Preferences - Purchasing Defaults page is
defaulted in the order document. This field will be defaulted only if Grants
product is installed, a Project and task are defaulted.

Distribution Expenditure (Expenditure details can be defaulted only when Project details are given and
Destination Type should be Expense)
Expenditure Type
- A classification of cost
assigned to each
expenditure item.
1. From the referenced requisition.
2. The value for Expenditure Type specified in the Preferences - Purchasing
Defaults is defaulted in the order document.

Expenditure
Organization
1. From the referenced requisition.
2. The value for Expenditure Organization specified in the Preferences -
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 23
Purchasing Defaults page is defaulted in the order document.
3. Based on the profile option PO: Expenditure Organization.
Expenditure Item Date
- The date on which work
is performed and is
charged to a project and
task.
1. From referenced requisition.
2. The value for Expenditure Date specified in the Preferences - Purchasing
Defaults page is defaulted in the order document.



Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 24
LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES BLANKET PURCHASE
AGREEMENT LINE
Attributes Defaulting Rules
Lines
Expiration Date
- The period in which
encumbrance for the
purchasing document
takes place.
1. From referenced requisition Assignment End Date.
2. From Price Modifier.
Minimum Release
Amount
- The minimum Amount
that can be released
against the purchase
order.
1. From Purchasing Options (Document Defaults Region).
Shopping Category
- The term to group items
with similar
characteristics.
1. From referenced requisition.
2. From iProcurement Catalog Administrator (Schema>Category
Mapping>Shopping Category).
Price Type 1. The value for Price Type specified in the Preferences - Purchasing Defaults
page will be defaulted in the order document.
2. From Oracle Sourcing.
Allow Price Override
- This flag is to indicate
that the price can
be overridden on the PO.
1. Yes for Fixed price services and fixed price temp labor line type.
2. No for Goods, Rate Based Temp Labor and other line types.
Price Break Type
(Cumulative or Non
Cumulative)
1. From Oracle Sourcing-quotation.
2. From Purchasing Options (Document Defaults region).
Lines Price Break
Organization 1.From Header Ship-To Organization
2.From Oracle Sourcing
Location 1.From Header Ship-To Location
2. From Oracle Sourcing
Quantity 1. From Oracle Sourcing
Break Price 1. Defaulted from Unit Price
Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 25
Discount

1. From Oracle Sourcing
Effective From 1. From Oracle Sourcing
Effective To 1. From Oracle Sourcing
Lines Item Attributes
Long Description 1. From Item.
Supplier Auxiliary ID 1. From Item Catalog.
Supplier URL 1. From Item Catalog.
Manufacturer 1. From Item Catalog.
Manufacturer URL 1. From Item Catalog.
Manufacturer Item 1. From Item Catalog.
Attachment URL 1. From Item Catalog.
Alias 1. From Item Catalog.
Lead Time 1. From Item Catalog.
UNSPSC Code 1. From Item Catalog.
Image 1. From Item Catalog.
Thumbnail Image 1. From Item Catalog.
Availability 1. From Item Catalog.
Comments 1. From Item Catalog.
UN Number 1. From Oracle Sourcing - defaulted from item.
2. Defaulted from referenced requisition.
Hazard Class 1. From Oracle Sourcing - defaulted from item.
2. Defaulted from referenced requisition.


Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 26
LIST OF ATTRIBUTES THAT HAVE DEFAULT VALUES BLANKET PURCHASE
AGREEMENT CONTROL
Attributes Defaulting Rules
Controls
Requesting OU 1. Defaulted from Operating Unit of the referenced requisition.
2. Defaulted from Owning Organization.
Purchasing OU 1. Defaulted from Purchasing Operating Unit.
2. Defaulted from Owning Organization.
Purchasing Site
1. From Supplier Site.
Enabled (OU Access)
1. For owning Organization defaulted to Yes.
Effective From
1. From Oracle Sourcing
Effective To
1. From Oracle Sourcing


Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use Page 27
CONCLUSION
This white paper enables users understand how the system works through the derivation sequence
and defaults the values for the relevant fields. Defaulting Rules enable users to reduce data entry
time and effort. Additionally, users can be assured of more accurate data in their purchasing
documents. Defaulting Rules in Oracle Purchasing thus improves document creation cycles and
processes. This in turn increases compliance and manages risk by eliminating manual intervention.
The buying organization has the advantage of improved efficiency and enhanced productivity.










Defaulting Rules in Purchase Orders and Agreements: For Better Configuration and Ease of Use
April 2014
Author: Manavalan Ethirajan
Contributing Authors: Vijayaganesh Sampathkumar, Abhimanyu Gangul y,Supri ya Bontala, Indu Nagdeo, Sridurga Pantham, Pratima Mahtani

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