Student Guide2

11i Purchasing for End Users
Student Guide • Volume 2
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Edition 1.0
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April 2003
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Copyright © Oracle Corporation, 2003. All rights reserved.
This documentation contains proprietary information of Oracle Corporation. It is provided under a license agreement containing
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Author
Paul Scott, Todd Round, Deanna McMillian
Technical Contributors and Reviewers
Terri North, Jim Ammons, Vic Mitchell, Rachel Korte, Shridhar Acharya
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This book was published using:
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Table of Contents
Procure to Pay Purchasing Overview ............................................................................................................1-1

Procure to Pay Purchasing Overview ............................................................................................................1-2
Procure to Pay Lifecycle................................................................................................................................1-3
Objectives ......................................................................................................................................................1-4
Agenda...........................................................................................................................................................1-5
Overview of Purchasing Process ...................................................................................................................1-6
Overview of Requisitions ..............................................................................................................................1-8
Overview of Requisition to Order Document................................................................................................1-10
Overview of Purchase Order Process ............................................................................................................1-11
Overview of Receiving Process.....................................................................................................................1-13
Agenda...........................................................................................................................................................1-16
Overview of Purchasing Integration ..............................................................................................................1-17
Purchasing Integration with General Ledger .................................................................................................1-22
Purchasing Integration with Payables............................................................................................................1-23
Purchasing Integration with Cash Management ............................................................................................1-24
Purchasing Integration with Projects .............................................................................................................1-25
Purchasing Integration with ASCP/MRP ......................................................................................................1-26
Purchasing Integration with e-Commerce Gateway ......................................................................................1-27
Purchasing Integration with Human Resources.............................................................................................1-28
Purchasing Integration with Quality ..............................................................................................................1-29
Purchasing Integration with Inventory ..........................................................................................................1-30
Purchasing Integration with Alert..................................................................................................................1-31
Purchasing Integration with Workflow..........................................................................................................1-32
Purchasing Integration with iSupplier Portal.................................................................................................1-34
Purchasing Integration with Assets................................................................................................................1-36
Purchasing Integration with WIP...................................................................................................................1-37
Purchasing Integration with Order Management...........................................................................................1-38
Summary........................................................................................................................................................1-39
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Suppliers...........................................................................................................................................................2-1
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Suppliers ........................................................................................................................................................2-2
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Objectives ......................................................................................................................................................2-4
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Agenda...........................................................................................................................................................2-5
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How Oracle Products Use Supplier Information ...........................................................................................2-6
Overview of Suppliers ...................................................................................................................................2-7
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Flow of Default Values..................................................................................................................................2-8
Agenda...........................................................................................................................................................2-9
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Supplier Record Structure..............................................................................................................................2-10
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Entering Basic Supplier Header Information.................................................................................................2-11
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Supplier Information - General Region .........................................................................................................2-13
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Supplier Information - Classification Region ................................................................................................2-14
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Supplier Information - Accounting Region ...................................................................................................2-16
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Supplier Information - Control Region..........................................................................................................2-17
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Supplier Information - Payment Region........................................................................................................2-19
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Supplier Information - Bank Accounts Region .............................................................................................2-21
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Supplier Information - EDI Region ...............................................................................................................2-22
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Supplier Information - Invoice Tax Region...................................................................................................2-23
Supplier Information - Withholding Tax Region...........................................................................................2-24
Supplier Information - Tax Reporting Region...............................................................................................2-25
Supplier Information - Purchasing Region ....................................................................................................2-26
Supplier Information - Receiving Region......................................................................................................2-28
Supplier Site Settings.....................................................................................................................................2-30
11i Purchasing for End Users Table of Contents

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Supplier Level Versus Site Level Entry ........................................................................................................2-31
Entering Basic Supplier Site Information .....................................................................................................2-32
Supplier Site Information - General Region ..................................................................................................2-33
Supplier Site Information - Contacts Region.................................................................................................2-35
Supplier Site Information - Accounting Region ............................................................................................2-36
Supplier Site Information - EDI Region ........................................................................................................2-37
Supplier Site Information - Tax Reporting Region........................................................................................2-38
Supplier Site Information - Purchasing Region .............................................................................................2-39
Guided Demonstration - Create a New Employee (Required)...................................................................2-40
Guided Demonstration - Run the Fill Employee Hierarchy Process (Required) .......................................2-42
Guided Demonstration - Create a New Responsibility (Required)............................................................2-43
Guided Demonstration - Create a New User (Required) ...........................................................................2-45
Guided Demonstration - Add Notifications to your Personal Home Page (Required) ..............................2-47
Guided Demonstration - Set Yourself up as a Buyer (Required)...............................................................2-48
Guided Demonstration - Create a Supplier (Required)..............................................................................2-49
Practice - Define a Supplier .......................................................................................................................2-53
Solution - Define a Supplier ......................................................................................................................2-54
Practice - Adjust a Supplier Site ................................................................................................................2-62
Solution - Adjust a Supplier Site ...............................................................................................................2-63
Maintaining Supplier and Supplier Site Information.....................................................................................2-66
Avoiding Duplicate Suppliers........................................................................................................................2-67
Merging Suppliers .........................................................................................................................................2-69
Data Example - Supplier Merge ....................................................................................................................2-71
Merging Suppliers .........................................................................................................................................2-72
Agenda...........................................................................................................................................................2-73
Reports...........................................................................................................................................................2-74
Summary........................................................................................................................................................2-77
Locations, Organizations, Units of Measure and Items ...............................................................................3-1
Locations, Organizations, Units of Measure and Items .................................................................................3-2
Agenda...........................................................................................................................................................3-3
What Is an Item?............................................................................................................................................3-4
Oracle Applications Use Items ......................................................................................................................3-5
How Do Oracle Applications Use Items?......................................................................................................3-6
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Item Attributes...............................................................................................................................................3-8
Items Have Statuses Which Represent the Life Cycle of the Item ................................................................3-10
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Item Attributes Used in Item Status...............................................................................................................3-12
Item Master Organization and Child Organizations ......................................................................................3-14
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Creating an Item ............................................................................................................................................3-16
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Setup, Define and Maintain Items .................................................................................................................3-17
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Describing Attribute Control at Master Level ...............................................................................................3-20
Describing Attribute Control at Child Level .................................................................................................3-22
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Describing Item Status Attribute Controls.....................................................................................................3-24
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Describing Status Attribute Dependencies ....................................................................................................3-26
Describing Item Attributes - Inventory..........................................................................................................3-27
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Describing Item Attributes - Purchasing .......................................................................................................3-31
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Describing Item Attributes - Receiving .........................................................................................................3-36
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Guided Demonstration - Create an Expense Item (Required) ...................................................................3-39
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Guided Demonstration - Create an Inventory Item (Required)..................................................................3-41
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Guided Demonstration - Create an Item for a Routinely Purchased Asset (Required)..............................3-43
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Practice - Create Items...............................................................................................................................3-45
Solution - Create Items ..............................................................................................................................3-48
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Define Item Relationships - Purchasing ........................................................................................................3-56
Agenda...........................................................................................................................................................3-58
Describing Item Templates............................................................................................................................3-59
Creating Item Templates ...............................................................................................................................3-60
Using Item Templates....................................................................................................................................3-62

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Example of Using a Template .......................................................................................................................3-63
Additional Setup Considerations ...................................................................................................................3-64
Summary........................................................................................................................................................3-66
RFQs and Quotations......................................................................................................................................4-1
RFQs and Quotations.....................................................................................................................................4-2
Objectives ......................................................................................................................................................4-4
Agenda...........................................................................................................................................................4-5
RFQs and Quotations.....................................................................................................................................4-6
Agenda...........................................................................................................................................................4-7
Request for Quotation....................................................................................................................................4-8
RFQ Lifecycle ...............................................................................................................................................4-10
Send Notifications .........................................................................................................................................4-11
RFQ Types.....................................................................................................................................................4-12
Supplier List ..................................................................................................................................................4-13
Guided Demonstration - Create a Supplier List (Required).......................................................................4-14
Practice - Create a Supplier List ................................................................................................................4-15
Solution - Create a Supplier List................................................................................................................4-16
RFQ Structure................................................................................................................................................4-18
RFQ Header...................................................................................................................................................4-19
RFQ Lines .....................................................................................................................................................4-21
RFQ Price Breaks/Shipments ........................................................................................................................4-23
Guided Demonstration - Create a Catalog RFQ (Required) ......................................................................4-24
Practice - Create a Catalog RFQ................................................................................................................4-27
Solution - Create a Catalog RFQ ...............................................................................................................4-31
Agenda...........................................................................................................................................................4-44
Quotations......................................................................................................................................................4-45
Quotation Lifecycle .......................................................................................................................................4-47
Quotation Types ............................................................................................................................................4-49
Quotation Structure........................................................................................................................................4-50
Quotation Header...........................................................................................................................................4-51
Quotation Lines .............................................................................................................................................4-53
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Quotation Price Breaks/Shipments ................................................................................................................4-55
Quotation Approvals......................................................................................................................................4-56
Guided Demonstration - Schedule the Send Notifications for Purchasing Documents Process (Required)
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Guided Demonstration - Create a Catalog Quote from an RFQ (Required) ..............................................4-57
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Practice - Create a Catalog Quote from an RFQ........................................................................................4-61
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Solution - Create a Catalog Quote from an RFQ .......................................................................................4-63
Agenda...........................................................................................................................................................4-68
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Reports...........................................................................................................................................................4-69
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Summary........................................................................................................................................................4-71
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Approved Supplier Lists and Sourcing Rules ...............................................................................................5-1
Approved Supplier Lists and Sourcing Rules................................................................................................5-2
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Objectives ......................................................................................................................................................5-4
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Agenda...........................................................................................................................................................5-5
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Approved Supplier Lists ................................................................................................................................5-6
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Supplier Statuses ...........................................................................................................................................5-7
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Guided Demonstration - Create an Approved Supplier List Status (Required) .........................................5-9
Practice - Create an Approved Supplier List Status...................................................................................5-10
Solution - Create an Approved Supplier List.............................................................................................5-11
ASL Common Header Attributes ..................................................................................................................5-13
ASL Header Attributes - Item........................................................................................................................5-15
ASL Header Attributes - Commodity............................................................................................................5-16

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Supplier-Commodity/Item Attributes ............................................................................................................5-18
Supplier-Commodity/Item Attributes Source Document ..............................................................................5-21
Supplier-Commodity/Item Attributes Supplier Scheduling...........................................................................5-23
Supplier-Commodity/Item Attributes Planning Constraints..........................................................................5-25
Guided Demonstration - Require an Approved Supplier for an Item (Required) ......................................5-27
Guided Demonstration - Create an Approved Supplier List (Required)....................................................5-29
Practice - Require an Approved Supplier for an Item................................................................................5-31
Solution - Require an Approved Supplier for an Item ...............................................................................5-33
Practice - Create an Approved Supplier List .............................................................................................5-38
Solution - Create an Approved Supplier List.............................................................................................5-40
Agenda...........................................................................................................................................................5-45
Sourcing Rules Overview ..............................................................................................................................5-46
Sourcing Rules...............................................................................................................................................5-47
Oracle Products That Use Sourcing Rules.....................................................................................................5-49
Create a Sourcing Rule ..................................................................................................................................5-50
Create a Sourcing Rule Assignment ..............................................................................................................5-51
Levels of Sourcing Rule Assignments...........................................................................................................5-53
Sourcing Rules with an ASL Source Document............................................................................................5-54
Sourcing Rules without an ASL Source Document.......................................................................................5-55
Default Sourcing Information to Requisitions...............................................................................................5-56
Default Sourcing Information to Standard Purchase Orders .........................................................................5-57
Guided Demonstration - Create a Sourcing Rule and a Sourcing Rule Assignment (Required) ...............5-58
Guided Demonstration - Enable Automatic Document Sourcing (Required)............................................5-62
Practice - Create a Sourcing Rule and a Sourcing Rule Assignment.........................................................5-64
Solution - Create a Sourcing Rule and a Sourcing Rule Assignment ........................................................5-67
Practice - Enable Automatic Document Sourcing .....................................................................................5-72
Solution - Enable Automatic Document Sourcing.....................................................................................5-73
Summary........................................................................................................................................................5-74
Requisitions ......................................................................................................................................................6-1
Requisitions ...................................................................................................................................................6-2
Objectives ......................................................................................................................................................6-4
Agenda...........................................................................................................................................................6-5
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Where Purchase Requisitions Fit...................................................................................................................6-6
Requisition Lifecycle.....................................................................................................................................6-7
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Agenda...........................................................................................................................................................6-9
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Requisition Structure .....................................................................................................................................6-10
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Requisition Preferences .................................................................................................................................6-11
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Requisition Header ........................................................................................................................................6-13
Requisition Line ............................................................................................................................................6-15
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Guided Demonstration - Create a Purchase Requisition (Required)..........................................................6-19
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Practice - Create a Purchase Requisition ...................................................................................................6-21
Solution - Create a Purchase Requisition...................................................................................................6-23
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Agenda...........................................................................................................................................................6-30
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Supplier Item Catalog....................................................................................................................................6-31
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Using the Supplier Item Catalog....................................................................................................................6-32
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Guided Demonstration - Create a Requisition Template (Required).........................................................6-33
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Guided Demonstration - Use the Supplier Item Catalog to Create a Requisition (Required)....................6-35
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Practice - Create a Requisition Template...................................................................................................6-37
Solution - Create a Requisition Template..................................................................................................6-39
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Practice - Use the Supplier Item Catalog to Create a Requisition .............................................................6-42
Solution - Use the Supplier Item Catalog to Create a Requisition.............................................................6-43
Requisition Distribution ................................................................................................................................6-47
Allocating Costs to Multiple Charge Accounts .............................................................................................6-49
Submitting Requisitions for Approval...........................................................................................................6-50

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Approving Requisitions.................................................................................................................................6-51
Requisition Templates ...................................................................................................................................6-52
Requisition Actions .......................................................................................................................................6-53
Agenda...........................................................................................................................................................6-54
Reports...........................................................................................................................................................6-55
Summary........................................................................................................................................................6-57
Purchase Orders ..............................................................................................................................................7-1
Purchase Orders.............................................................................................................................................7-2
Objectives ......................................................................................................................................................7-4
Agenda...........................................................................................................................................................7-5
Purchase Order Types....................................................................................................................................7-6
Purchase Orders.............................................................................................................................................7-8
Purchase Order Components and Record Structure.......................................................................................7-9
Overview of AutoCreated Purchase Orders...................................................................................................7-11
Agenda...........................................................................................................................................................7-13
Overview of Standard Purchase Orders.........................................................................................................7-14
Simplify the Entry of Purchase Orders: Preferences .....................................................................................7-15
Standard Purchase Order Elements................................................................................................................7-17
Structure of a Simple Standard Purchase Order ............................................................................................7-18
Structure of a More Complex Standard Purchase Order................................................................................7-19
Entering Standard Purchase Order Header Information ................................................................................7-20
Standard Purchase Orders Terms and Conditions .........................................................................................7-22
Entering Standard Purchase Order Lines Tabbed Regions............................................................................7-24
Standard Purchase Order Line Items Tabbed Region....................................................................................7-25
Standard Purchase Order Line Price Reference Tabbed Region ...................................................................7-27
Standard Purchase Order Line Reference Documents Tabbed Region..........................................................7-28
Standard Purchase Order Line More Tabbed Region ....................................................................................7-30
Entering Standard Purchase Order Shipments - Tabbed Regions..................................................................7-31
Standard Purchase Order Shipment Shipments Tabbed Region ....................................................................7-32
Standard Purchase Order Shipment More Tabbed Region ............................................................................7-34
Standard Purchase Order Shipment Status Tabbed Region ...........................................................................7-36
Standard Purchase Order Shipment Receiving Controls Button....................................................................7-37
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Entering Standard Purchase Order Distributions - Tabbed Regions..............................................................7-38
Standard Purchase Order Distribution Destination Tabbed Region ..............................................................7-39
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Standard Purchase Order Distribution More Tabbed Region ........................................................................7-41
Standard Purchase Order Distribution Project Tabbed Region......................................................................7-42
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Approve Standard Purchase Order ................................................................................................................7-43
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Guided Demonstration - Create a Standard Purchase Order (Required) ...................................................7-44
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Practice - Create a Standard Purchase Order .............................................................................................7-50
Solution - Create a Standard Purchase Order.............................................................................................7-52
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Agenda...........................................................................................................................................................7-64
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When to Use a Blanket Purchase Agreement ................................................................................................7-65
Blanket Releases............................................................................................................................................7-66
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Blanket Purchase Agreements Additional Information Entered....................................................................7-68
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Blanket Purchase Agreements Additional Information - Header ..................................................................7-69
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Blanket Purchase Agreements Additional Information - Lines .....................................................................7-71
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Blanket Purchase Agreements Additional Information - Price Breaks..........................................................7-73
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Notification Controls .....................................................................................................................................7-75
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Approve Blanket Purchase Agreement..........................................................................................................7-77
Guided Demonstration - Create a Blanket Purchase Agreement (Required).............................................7-78
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Blanket Purchase Agreement and Blanket Releases......................................................................................7-81
Blanket Releases Structure - Header .............................................................................................................7-82
Blanket Releases Structure Shipments and Distributions ..............................................................................7-84
Guided Demonstration - Create a Blanket Release (Required) .................................................................7-85
Practice - Create a Blanket Purchase Agreement and Blanket Release .....................................................7-86

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Solution - Create a Blanket Purchase Agreement and Blanket Release ....................................................7-88
Agenda...........................................................................................................................................................7-98
When to Use a Contract Purchase Agreement...............................................................................................7-99
Contract Purchase Agreements Additional Information Entered...................................................................7-100
Standard Purchase Order Line Reference Documents Tabbed Region..........................................................7-102
Guided Demonstration - Create a Contract Purchase Agreement (Required)............................................7-104
Practice - Create a Contract Purchase Agreement .....................................................................................7-106
Solution - Create a Contract Purchase Agreement.....................................................................................7-107
Agenda...........................................................................................................................................................7-113
Purchase Order Inquiry..................................................................................................................................7-114
Modifying Purchase Orders...........................................................................................................................7-116
Printing Purchase Orders ...............................................................................................................................7-118
Creating Purchase Order Revisions ...............................................................................................................7-119
Archiving Purchase Orders............................................................................................................................7-120
Purchase Order Statuses - Typical Cycle.......................................................................................................7-121
Entering Purchase Order Acceptances...........................................................................................................7-124
Workflow Notifications.................................................................................................................................7-126
Copying Purchase Orders ..............................................................................................................................7-127
Agenda...........................................................................................................................................................7-129
Reports...........................................................................................................................................................7-130
Summary........................................................................................................................................................7-134
Automatic Document Creation.......................................................................................................................8-1
Automatic Document Creation ......................................................................................................................8-2
Objectives ......................................................................................................................................................8-4
Agenda...........................................................................................................................................................8-5
Creating Purchase Documents from Requisitions .........................................................................................8-6
Benefits of Using AutoCreate........................................................................................................................8-8
Overview of AutoCreate................................................................................................................................8-9
Automatic Creation Mode .............................................................................................................................8-11
Find Requisition Lines...................................................................................................................................8-12
Select Document Creation Criteria ................................................................................................................8-14
Select Requisition Lines ................................................................................................................................8-16
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Select Automatic Creation Mode...................................................................................................................8-17
Autocreate New Document Window.............................................................................................................8-18
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Manual Creation Mode..................................................................................................................................8-19
Add to Existing Document ............................................................................................................................8-20
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Modify Requisition Lines..............................................................................................................................8-21
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Return Requisition Lines ...............................................................................................................................8-22
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Guided Demonstration - Return a Requisition (Required) ........................................................................8-23
Guided Demonstration - AutoCreate a Purchase Order (Required)...........................................................8-25
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Practice - Return a Requisition ..................................................................................................................8-26
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Solution - Return a Requisition .................................................................................................................8-29
Practice - AutoCreate a Purchase Order ....................................................................................................8-38
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Solution - AutoCreate a Purchase Order....................................................................................................8-39
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Summary........................................................................................................................................................8-42
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Receiving ..........................................................................................................................................................9-1
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Receiving.......................................................................................................................................................9-2
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Objectives ......................................................................................................................................................9-4
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Agenda...........................................................................................................................................................9-5
Receiving.......................................................................................................................................................9-6
Overview of Receiving Locations .................................................................................................................9-8
Agenda...........................................................................................................................................................9-9
Overview of Receipt Routing ........................................................................................................................9-10
Direct Delivery ..............................................................................................................................................9-11

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Standard Receipt............................................................................................................................................9-12
Inspection Required.......................................................................................................................................9-13
Agenda...........................................................................................................................................................9-14
Receipt Processing Methods..........................................................................................................................9-15
Standard Receipt............................................................................................................................................9-17
Express Receipt .............................................................................................................................................9-18
Cascade Receipt.............................................................................................................................................9-19
ASNs and ASBNs..........................................................................................................................................9-20
Receiving in iProcurement ............................................................................................................................9-21
Receiving Open Interface ..............................................................................................................................9-22
Finding Expected Receipts ............................................................................................................................9-23
Receipt Header ..............................................................................................................................................9-25
Receipt Line...................................................................................................................................................9-27
Guided Demonstration - Create a Standard Purchase Order (Required) ...................................................9-29
Guided Demonstration - Create a Standard Receipt (Required)................................................................9-34
Guided Demonstration - Create an Express Receipt (Required) ...............................................................9-36
Guided Demonstration - Create a Cascade Receipt (Required).................................................................9-38
Practice - Create Items...............................................................................................................................9-40
Solution - Create Items ..............................................................................................................................9-43
Practice - Create a Standard Purchase Order .............................................................................................9-51
Solution - Create a Standard Purchase Order.............................................................................................9-54
Practice - Create a Standard Receipt..........................................................................................................9-61
Solution - Create a Standard Receipt .........................................................................................................9-63
Practice - Create an Express Receipt .........................................................................................................9-65
Solution - Create an Express Receipt.........................................................................................................9-67
Practice - Create a Cascade Receipt ..........................................................................................................9-69
Solution - Create a Cascade Receipt..........................................................................................................9-71
Control the Receiving Transaction Processor................................................................................................9-74
Receiving Tolerances ....................................................................................................................................9-76
Control Numbers ...........................................................................................................................................9-77
Agenda...........................................................................................................................................................9-78
Substitute Receipts ........................................................................................................................................9-79
Unordered Receipts .......................................................................................................................................9-80
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Overview of Returns and Corrections ...........................................................................................................9-81
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Entering Returns ............................................................................................................................................9-82
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Entering Corrections......................................................................................................................................9-83
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Difference between Returns and Corrections ................................................................................................9-84
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Guided Demonstration - Inspect and Deliver a Receipt (Required) ..........................................................9-85
Guided Demonstration - Process a Return to Supplier (Optional).............................................................9-87
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Guided Demonstration - Correct a Receiving Error (Optional).................................................................9-89
Practice - Inspect and Deliver a Receipt ....................................................................................................9-91
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Solution - Inspect and Deliver a Receipt ...................................................................................................9-93
Practice - Process a Return to Supplier......................................................................................................9-96
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Solution - Process a Return to Supplier .....................................................................................................9-98
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Practice - Correct a Receiving Error..........................................................................................................9-100
Solution - Correct a Receiving Error .........................................................................................................9-102
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Overview of Pay on Receipt ..........................................................................................................................9-105
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Agenda...........................................................................................................................................................9-107
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Reports...........................................................................................................................................................9-108
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Summary........................................................................................................................................................9-111
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Preface
Profile
Prerequisites
• 11i Navigating Oracle Applications
• 11i Essentials for Implementers.
How This Course Is Organized
This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations
and written practice sessions reinforce the concepts and skills introduced.
Related Publications
Oracle Publications
Title Part Number
Oracle Payables User’s Guide A81180-03
Oracle Purchasing User’s Guide A82913-01
Oracle iProcurement Installation Guide A85343-02
Oracle Inventory User’s Guide A83507-03
Implementing Oracle HRMS (US)

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Additional Publications
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• System release bulletins
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Installation and user’s guides
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•
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read.me files
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•
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Oracle Magazine
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Typographic Conventions
Typographic Conventions in Text
Convention Element Example
Bold italic Glossary term (if The algorithm inserts the new key.
there is a glossary)
Caps and Buttons, Click the Executable button.

lowercase check boxes, Select the Can’t Delete Card check box.
triggers, Assign a When-Validate-Item trigger to the ORD block.
windows Open the Master Schedule window.
Courier new, Code output, Code output: debug.set (‘I”, 300);

case sensitive directory names, Directory: bin (DOS), $FMHOME (UNIX)
(default is filenames, Filename: Locate the init.ora file.
lowercase) passwords, Password: User tiger as your password.
pathnames, Pathname: Open c:\my_docs\projects
URLs, URL: Go to http://www.oracle.com
user input,
User input: Enter 300
usernames
Username: Log on as scott
Initial cap Graphics labels Customer address (but Oracle Payables)

(unless the term is a
proper noun)
Italic Emphasized words Do not save changes to the database.
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and phrases, For further information, see Oracle7 Server SQL Language
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titles of books and Reference Manual.
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courses, Enter user_id@us.oracle.com, where user_id is the
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variables name of the user.
Quotation Interface elements
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Select “Include a reusable module component” and click Finish.
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marks with long names
that have only
initial caps; Objects.”
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This subject is covered in Unit II, Lesson 3, “Working with
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lesson and chapter
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titles in cross-
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references
Uppercase
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SQL column
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Use the SELECT command to view information stored in the
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names, commands, LAST_NAME
e Ifunctions, schemas, column of the EMP table.
cl table names
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Arrow Menu paths Select File > Save.
Brackets
Commas
Or Key names
Key sequences
Press [Enter].
Press and release keys one at a time:
[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

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Typographic Conventions in Code
Convention Element Example
Caps and Oracle Forms When-Validate-Item
lowercase triggers
Lowercase Column names, SELECT last_name
table names FROM s_emp;
Passwords DROP USER scott

IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (‘prod_pie_layer’))
Lowercase Syntax variables CREATE ROLE role

italic
Uppercase SQL commands and SELECT userid
functions FROM emp;
Typographic Conventions in Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:
1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches
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Summary.
2. (M) From the menu, select Query then Find.

On
3. (B) Click the Approve button.
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Notations:
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(N) = Navigator
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(M) = Menu
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(T) = Tab
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(B) = Button
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(I) = Icon
(H) = Hyperlink

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Typographical Conventions in Help System Paths
This course uses a “navigation path” convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example—
(Help) General Ledger > Journals > Enter Journals
—represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General Ledger entry.
2. Under the General Ledger entry, expand Journals.
3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of the help system
window.
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Purchase Orders
Chapter 7
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Purchase Orders
Chapter 7 - Page 1
Purchase Orders
Purchase Orders
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Purchase Orders
Chapter 7 - Page 2
Procure to Pay Lifecycle

Requisitions
Catalog
Content Purchase
Management Orders
Ordering
RFQs/ Receiving
Quotations Sourcing
Invoice/
Analysis Payment
Supplier
management Reporting
Supplier
Performance
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Purchase Orders
Chapter 7 - Page 3
Objectives
Objectives
After completing this module, you should be able to do

the following:
• Create standard, blanket and contract
purchase documents
• Create blanket purchase agreement releases
• Maintain purchase orders
• Identify key reports
• Understand setup options
• Understand additional implementation
considerations
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Chapter 7 - Page 4
Agenda
Agenda
• Overview of purchase orders

• Create standard purchase orders
• Create blanket purchase agreements
and releases
• Create contract purchase agreements
• Maintain/adjust purchase orders
• Identify key standard reports
considerations
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Purchase Orders
Chapter 7 - Page 5
Purchase Order Types

Standard Planned
Purchase Purchase Blanket Contract
Order Order Agreement Agreement
Header Header Header Header
Line Line Line
Standard PO
Shipment Shipment
Header
Distribution Distribution Blanket
Release Line
Shipment Shipment
Scheduled
Release Distribution Distribution

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Standard Purchase Order
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A one-time commitment to purchase goods or services. You create standard purchase orders
schedules, and accounting distributions.

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when you know the details of the goods or services, estimated costs, quantities, delivery
Planned Purchase Order

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A long-term purchase agreement committing you to buy goods or services. Planned purchase
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orders include tentative delivery schedules and accounting distributions. Create planned
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releases to authorize suppliers to ship.
Blanket Purchase Agreement
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A long-term agreement allowing for stable pricing over the life of the agreement, while also
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allowing flexible order quantity commitments and delivery schedules. Pricing on blanket
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purchase agreements can include break pricing. You typically use this agreement when
negotiating volume discounts on individual items. Create blanket releases to authorize
suppliers to ship.
Contract Purchase Agreement
Purchase Orders
Chapter 7 - Page 6
A master terms and conditions document. Typically use contract purchase agreements when
negotiating pricing on a volume of business to manage terms and conditions. Suppliers are
authorized to ship through standard purchase order lines referencing the contract. Contracts
can be coupled with a catalog quotation to reference pricing on a per item basis.
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Purchase Orders
Chapter 7 - Page 7
Purchase Orders
Purchase Orders
Demand
Inventory WIP MRP Order Other

Mgmt Systems
Import
Internal Order Mgmt

sales order
Approval
Manually Requisition
create Requisition
pool PO
Purchase Orders
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Demand for Goods or Services
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Import requisitions from created from demand generated in Materials Requirements Planning
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(MRP), Inventory, Work-in-Process (WIP), Order Management or other non-Oracle systems.
Demand can also be generated manually through detail entry, with the assistance of requisition
templates, or through the iProcurement module.
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Sourcing
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Goods or services can be sourced from external suppliers through the creation of purchase
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orders or from within the organization through the creation of internal sales orders.
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Purchase Orders
Chapter 7 - Page 8
Purchase Order Components and Record Structure
Purchase Order Components and Record

Structure
Header
Lines
1 2 3
Shipments
1 1 2 1
Distributions
1 2 1 1 1
Purchase Order Components and Record Structure

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Header
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Each purchase order has a header that provides the supplier’s name/number and address
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(through sites), basic ship-to and bill-to addresses (through locations) and a status.
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Lines
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Goods or services ordered are listed on the Lines region, including quantities, price, need-by
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date, notes to supplier and price reference information. You can order system items or one-
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time items (a category and description). Even companies who are not inventory focused can
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Shipments
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benefit from defining system items to reduce data entry requirements for their staff.
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Use the Shipments window to specify inventory organizations, ship-to locations and the date
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you want your supplier to deliver the items on the purchase order line. A purchase order line
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with a quantity of six items can, for example, have two scheduled shipments on separate dates.
Distributions
Use the purchase order Distributions window to enter distribution information for purchase
order shipments or to view distributions that Purchasing has automatically created for you.
Purchase Orders
Chapter 7 - Page 9
You can enter multiple distributions per shipment line. You can also view the on-line
requisitions included on the purchase order or enter information about paper requisitions in this
window.
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Purchase Orders
Chapter 7 - Page 10
Overview of AutoCreated Purchase Orders
Automatic
mode
Requisition PO
line
pool
Query available
requisition lines Manual
Choose lines mode
from PO
query results

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Using the AutoCreate form is a common method to produce purchase documents from
requisitions. Other methods include:
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• PO Create Documents workflow
• Copy Document
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Requisition Line Pool
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You can use the AutoCreate window to query requisition lines with a status of Approved to
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place on purchase orders. You can query lines for different requisitions, different items,
different suggested suppliers, different departments, etc. You may be able to lower unit prices
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by combining multiple requisition lines and taking advantage of volume discount purchases.
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Automatic Mode Versus Manual Mode
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After buyers query and select requisition lines, they can choose to use either Automatic
creation mode or Manual creation mode to place requisition lines on purchase documents.
You generally select manual creation mode only when you need to specify exact ordering and
grouping of requisition lines on a purchase document.
Purchase Orders
Chapter 7 - Page 11
Agenda
Agenda

and releases
• Understand additional
implementation considerations
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Chapter 7 - Page 12
Overview of Standard Purchase Orders
Buyer Supplier
Purchase Order
- binding agreement -

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Definition
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You generally create standard purchase orders for one-time purchases of various items when
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you know the details of the goods or services you require, including costs, quantities, delivery
schedules and accounting distributions. Each standard purchase order line can have multiple
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shipments, and you can distribute the quantity of each shipment across multiple charge
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accounts, projects, tasks and requestors.
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Binding agreement
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The original copy of the purchase order you send to your supplier is a legal offer to buy. A
binding purchase contract does not exist until the supplier accepts your offer either by
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performing the contract (by shipping goods) or formally accepting the offer by contacting you
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verbally or in writing. You can record acceptances on behalf of your suppliers or they can do
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it using iSupplier Portal. The Send Notifications for Purchasing Documents process will send
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you a notification if a required acceptance is not recorded by the required date.
Purchase Orders
Chapter 7 - Page 13
Simplify the Entry of Purchase Orders: Preferences
Simplify the Entry of Purchase Orders:

Preferences
Default Value Hierarchy
Preferences
PO Documents
Simplify the Entry of Purchase Orders - Preferences

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Definition
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Use the Preferences window to enter values that will default to all purchase order headers,
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lines, shipments and distributions that you enter. By using preferences, you have essentially
gained an additional level of defaults in the Default Value Hierarchy. Recall that the
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Purchasing Default Value Hierarchy includes the following: Financials Options,
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Purchasing/Receiving Options, Supplier, Supplier Site, Item and PO Documents.
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Benefits
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Although setting preferences is optional, you will want to selectively enter preferences for data
that would be repetitively entered on multiple lines, shipments or distributions. Preferences,
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therefore, reduce the amount of data entry required to complete purchase orders. For example,
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if you’re creating a purchase order for four items, all of which are needed by the same date,
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specify a Need-By date in the Preferences window that will default to all four lines. If,
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however, all four items were needed by a different date, it wouldn’t save any time to use the
Preferences window to specify a Need-By date.
How Long are Preferences Effective?
Purchase Orders
Chapter 7 - Page 14
Session preferences must be set each time you log into the applications or even change
responsibilities. While in a session, however, preferences remain in effect unless you
explicitly clear or change them.
Apply Preferences to Save
Once the desired preferences have been set, you must click the Apply button to save them. If
you simply close the Preferences window, either no preferences will be set or previously set
preferences will remain in effect.
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Chapter 7 - Page 15
Standard Purchase Order Elements
Standard Purchase
Standard purchase orders Order
contain all four elements of
HEADER
a purchasing document.
All purchase order types LINE

represent some combination
of the basic elements of the
standard purchase order. SHIPMENT
DISTRIBUTION

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Purchasing Responsibility
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(N) Purchase Orders > Purchase Orders
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The Standard Purchase Order is complete and allows a supplier to locate and deliver the goods
or services ordered. All purchase order types represent some combination of the basic
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elements of the standard purchase order.
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• Header - Contains the purchase order number, the supplier’s name and address, basic
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ship-to and bill-to addresses, and the status.
• Line - Details of the goods or services ordered, including name, quantity and price.
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• Shipment - Details of when and where to deliver items.
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• Distribution - Details of charge accounts and requisition references.
Purchase Orders
Chapter 7 - Page 16
Structure of a Simple Standard Purchase Order
Structure of a Simple Standard Purchase

Order
HEADER
LINE 1 LINE 2
SHIPMENT 1 SHIPMENT 1
DISTRIBUTION 1 DISTRIBUTION 1
Structure of a Simple Standard Purchase Order

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The structure displayed above shows a purchase order with two items being ordered (Line 1
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and Line 2). Each item is expected to be shipped on the same day to a single address.
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Furthermore, each item is charged to a single charge account.
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Chapter 7 - Page 17
Structure of a More Complex Standard Purchase Order
Structure of a More Complex Standard

Purchase Order
HEADER
LINE 1 LINE 2
SHIPMENT 1 SHIPMENT 1 SHIPMENT 2
Structure of a More Complex Standard Purchase Order

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The structure displayed above shows a purchase order with two items being ordered (line 1 and
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line 2). Line 1, however, has a single shipment with multiple distributions while line 2 has
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multiple shipments, each with a single distribution. Notice that you cannot equate the number
associated with a shipment line or distribution line with an item line. For example, distribution
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2 does not belong to shipment 2 or line 2. Distribution 2 actually belongs to shipment 1 which
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belongs to item line 1.
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Chapter 7 - Page 18
Entering Standard Purchase Order Header Information
Entering Standard Purchase Order Header

Information
Purchase Orders
PO Number PO Type Created Date

Supplier Name Supplier Site Supplier Contact
Ship To Bill To Currency
Buyer Status Total
Description
Line
Currency Terms
Entering Standard Purchase Order Header Information

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PO Number
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The system will generate a PO number when the document is saved, if PO automatic number
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generation is enabled. If manual numbering is enabled, you must enter a unique PO number.
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PO Type
Select Standard Purchase Order for this field.
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Creation Date
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This will be the date that the document was initially saved. It may be the same day, the next
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week or the next month before the purchase order is submitted for approval.
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Supplier, Site and Contact
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The list of values on the Supplier field contains active suppliers. The list of values on the site
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field contains active sites that are designated as purchasing sites on the General tabbed region
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for the site. If you cannot find the desired supplier or site, you may need to request that it be
defined. Choose a contact using the list of values if contacts are defined and no contact
defaults.
Ship-to and Bill-to Locations
Purchase Orders
Chapter 7 - Page 19
Ship-to and Bill-to locations default based on the supplier and site you select. You can
override the values that default.
Currency
The functional currency defaults. Use the Currency button to change the functional currency if
you are using multiple currencies.
Buyer
The defaulted buyer is the employee name associated with the user name of the person creating
the purchase order. If the Enforce Buyer Name option in the Purchasing Options window is set
to Yes, you will not be able to override the default.
Status
The status of a newly created purchase order is Incomplete. The status will be updated by the
system based on actions taken by buyers or approvers.
Total
The total of the purchase order is displayed based on the extended line totals.
Description
You can enter comments in the 240 character description field. Although the description does
not print on the printed purchase order, suppliers can use it if they have access to the system
with iSupplier Portal.
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Purchase Orders
Chapter 7 - Page 20
Standard Purchase Orders Terms and Conditions
Standard Purchase Orders Terms and

Conditions
Terms Special Conditions

• Payment • Confirming Order
• Freight • Firm
• Carrier • Acceptance Required
• FOB
• Pay On
Notes
• Supplier
• Receiver
Standard Purchase Orders - Terms and Conditions

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Payment terms
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Specify payment terms indicate when you are expected to make payment for the goods or
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services received. The terms may include an amount due, as well as a discount amount.
Commonly used payment terms are Net 30 or 2/10, Net/30. You can create additional payment
terms as necessary.
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Freight terms
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Specify freight terms to indicate who is responsible for the direct charges related to
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transporting shipped goods. Commonly used freight terms include Due (indicating you pay the
freight charges) or Prepaid (indicating that the supplier will pay for the freight charges).
Carrier
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Specify the name of the freight carrier responsible for physical transportation of the goods.
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FOB, or Free-On-Board
Specify FOB to indicate the point at which ownership of the goods (and therefore costs of loss
or damage) transfers from the supplier to you. Commonly used FOB terms include Origin
(indicating that ownership transfers at the point when the supplier delivers the goods to the
Purchase Orders
Chapter 7 - Page 21
carrier) and Destination (indicating that ownership transfers at the point when the carrier
delivers the goods to you).
Pay On
Provides a default value of Receipt if the selected supplier site has been enabled for the Pay on
Receipt functionality. If Receipt is selected, an invoice will be automatically created for this
purchase order when receipt of the goods has been acknowledged and you run the Pay on
Receipt AutoInvoice process. If you do not want an invoice to be created, you can clear the
value that defaults into the field.
Special Conditions
• Confirming Order - Indicates that you’ve already communicated the order to the supplier
and this purchase order is simply providing written confirmation. When you select the
Confirming Order option, the words “This is a confirming order. Do not duplicate.” will
be included on the printed purchase order.
• Firm - This is a setting used with MRP to indicate to that module that it can neither
change the details nor suggest changes to the details of the purchase order based on
changed demands that have occurred since the order was originally created.
• Acceptance Required - Indicates whether acknowledgement of receipt of the purchase
order is requested from the supplier. When the box is checked, the buyer can also
provide the date by which that acknowledgement is requested.
Notes:
• Supplier Note - This field can be used to enter up to 240 characters which will print on
the purchase order sent to the supplier.
• Receiver Note - This field also allows up to 240 characters to be entered, but will not be
printed on the purchase order. Notes to receiver are can be viewed by users entering
actual receipt transactions.
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Chapter 7 - Page 22
Entering Standard Purchase Order Lines Tabbed Regions
Entering Standard Purchase Order Lines

Tabbed Regions
The line portion of the standard purchase order is

comprised of four tabbed regions:
• Items
• Price Reference
• Reference Documents
• More
Entering Standard Purchase Order Lines - Tabbed Regions

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Enter initial information regarding the goods or services being ordered in the tabbed regions
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for the line. If sufficient valid default information is available, Purchasing creates shipments
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and distributions for each line.
Items Tabbed Region
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Enter basic information such as the items, descriptions, quantities, and dates needed.
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Price Reference Tabbed Region
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Pricing information will default in this tabbed region from the item definition.
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Reference Documents Tabbed Region
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Use the Reference Documents tabbed region to reference contracts or catalog quotations when
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purchasing items from established agreements. If you have associated a catalog quotation with
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an approved supplier list or are have set the PO: Automatic Document Sourcing profile option
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to Yes, and have valid quotations in the system, quotation information will default.
More Tabbed Region
Enter information regarding hazardous materials and supplier notes in this tabbed region.
Purchase Orders
Chapter 7 - Page 23
Standard Purchase Order Line Items Tabbed Region
Standard Purchase Order Line Items

Tabbed Region
Standard Purchase
Items Order
Num, Type, Item, Revision,
Category, Description, HEADER
UOM, Quantity, Price,
Promised, Need-By, Supplier
Item, Charge LINE
Account, Amount
Price Reference
Reference Documents SHIPMENT
More
DISTRIBUTION
Standard Purchase Order Line - Items Tabbed Region

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Num
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The system will automatically generate a unique line number for each line you create.
Type
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The value that defaults to new lines is the value set as the default in the Purchasing Options
window. If you enter a system item, the type set on the item’s definition will override the
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original defaulting value if necessary.
Item/Revision
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Select from the list of values if ordering an item that’s already been defined in the item master.
Once selected, the category, description, UOM and price will populate based on the item
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definition. If the system item has been placed under revision control, you must also select the
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appropriate revision number being ordered. If ordering items that have not been defined in the
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item master, skip the Item/Revision fields and manually enter a category, description, UOM
and price.
Category
Purchase Orders
Chapter 7 - Page 24
A required field populated either from the predefined item’s definition or manually. You
cannot change the purchasing category if you choose a system item.
Description
For system items, you can update the description only if that functionality has been enabled for
item attribute controlling descriptions. The full item description for the current line is
displayed beneath the Lines tabbed region. You must provide a description for one-time items.
UOM (Unit of Measure)
The UOM qualifies the quantity that will next be entered. Suppliers need to know whether
you’re ordering 3 each, 3 boxes or 3 pounds. The value initially populates with the default set
up for the line type selected, and is then overridden by the value set on the item definition.
Quantity
Enter the total quantity to be ordered.
Promise/Need-By Dates
Enter the date that you have requested delivery from the supplier in the Need-By date field. If
you have communicated with the supplier who has committed to a delivery date, enter it in the
Promise field instead. It’s important that only supplier-provided dates be entered in the
Promise field, and non supplier-provided dates be entered only in the Need-By date field.
These dates will be used to measure supplier performance related to delivery issues.
Supplier Item
If available, you can enter the number or name that the item has been assigned on the
supplier’s item list. For example, our item master may have assigned a number/name in Oracle
of “Pencils, Lead No. 2”, but the supplier’s number for the item in their system may be “12-
7732”.
Charge Account
If an item is distributed to a single charge account, the account number is displayed for
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viewing purposes only, it cannot be updated directly in this window. If an item is being
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distributed to multiple charge accounts, the word “Multiple” will be displayed, requiring you
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to drill down to either the Shipment or Distribution level of the purchase order to see charge
account combinations.
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Amount
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This is a display field which holds the results of the quantity ordered multiplied by the price.
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Purchase Orders
Chapter 7 - Page 25
Standard Purchase Order Line Price Reference Tabbed Region
Standard Purchase Order Line Price

Reference Tabbed Region
Standard Purchase
Items Order
Price Reference
Num, List Price, HEADER
Market Price, Price Type
Reference Documents
LINE
More
SHIPMENT
DISTRIBUTION
Standard Purchase Order Line - Price Reference Tabbed Region

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List Price/Market Price
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When ordering predefined items, the list price and market price will default from the item’s
definition if specified. You can either accept the defaults or make changes. The list price is
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the price paid with no discounts, while the market price is what the item is currently selling for
in the market.
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Price Type
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This is a user-defined list of values developed through lookup codes. Commonly used price
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types include fixed, variable and cost plus fee.
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Purchase Orders
Chapter 7 - Page 26
Standard Purchase Order Line Reference Documents Tabbed
Region
Standard Purchase Order Line Reference

Documents Tabbed Region
Standard Purchase
Items Order
Price Reference
HEADER
Reference Documents
Num, Contract, Quotation,
Line, Quotation Type,
LINE
Supplier Quotation
More
SHIPMENT
DISTRIBUTION
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Standard Purchase Order Line - Reference Documents Tabbed Region
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Num
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Contract
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You cannot enter a contract number until you have entered a supplier in the header, and the
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contract must be for this supplier. The contract you choose must be effective; that is, the
current date has to be within the effective date and the expiration date of the contract. If you
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reference a contract purchase agreement on a standard purchase order line, Purchasing adds the
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total amount of the purchase order line to the released amount on the contract purchase
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agreement. Purchasing lists only those contracts with the same supplier as the one on your
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standard purchase order.
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Quotation/Line/Quotation Type/Supplier Quotation
These fields are display only and will be populated if you selected a quotation from the
Supplier Item Catalog. These fields will also be populated if you have created sourcing rules
and either associated a catalog with an approved supplier list (PO: Automatic Document
Purchase Orders
Chapter 7 - Page 27
Sourcing = No) or have active, unexpired quotations in the system (PO: Automatic Document
Sourcing = Yes). This catalog will be discussed later in this module.
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Chapter 7 - Page 28
Standard Purchase Order Line More Tabbed Region
Standard Purchase Order Line More

Tabbed Region
Standard Purchase
Items Order
Price Reference
HEADER
Reference Documents
More
Num, Note to Supplier, LINE
UN Number, Hazard,
Capital Expense
SHIPMENT
DISTRIBUTION
Standard Purchase Order Line - More Tabbed Region

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Note to Supplier
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Enter up to 240 characters of special information that needs to be communicated to the
supplier. Notes at this level are specific to the particular line entered as opposed to notes to
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suppliers entered at the header level that pertain to all lines on the purchase order. If 240
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characters are not sufficient, use the Attachments feature to add a text attachment that will
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print on the purchase order.
UN Number/Hazard
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If applicable, enter the UN identification number for the item. Any default, if present, comes
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from the item definition. If you’ve entered a UN Number, the corresponding hazard class is
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displayed. Otherwise, you can enter a hazard class for this item.
Capital Expense
Indicates that the purchase is a capital expenditure that will be later integrated with Assets or
some other asset system.
Purchase Orders
Chapter 7 - Page 29
Entering Standard Purchase Order Shipments - Tabbed Regions
Entering Standard Purchase Order

Shipments - Tabbed Regions
• The shipment portion of the standard purchase

order is actually comprised of three tabbed
regions:
– Shipments
– More
– Status
• Must be at least one shipment for each line
• Can be many shipments for each line
Entering Standard Purchase Order Shipments - Tabbed Regions

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The Shipment section of the purchase order contains detail regarding quantities of items to be
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shipped by specified ship dates and to specified ship locations. When you save your work,
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are no existing distributions.
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Purchasing creates distributions if sufficient, valid, default information is available and if there
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Purchase Orders
Chapter 7 - Page 30
Standard Purchase Order Shipment Shipments Tabbed Region
Standard Purchase Order Shipment

Shipments Tabbed Region
Shipments More Status
Num
Org/Ship-To
UOM/Quantity
Need-By
Promised Date/
Original
Promise
Charge
Account
Amount
Standard Purchase Order Shipment - Shipments Tabbed Region

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Num
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Org
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If you entered a system item, you can pick only inventory organizations in which the item is
defined. If you entered a revision number on the purchase order line, then the item revision
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must also be defined in the inventory organization. If you did not enter an item, then you can
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select from a list of values of inventory organizations.
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Ship-To
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You can pick any location that is not tied to a specific inventory organization or any location
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whose associated organization matches the organization in the previous field.
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UOM/Quantity
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The first shipment line for any item will have the full quantity and UOM defaulting from the
Items tabbed region previously discussed. If you decrease this quantity, Purchasing will
automatically default the remaining quantity ordered that has not yet been placed on the
Purchase Orders
Chapter 7 - Page 31
shipment line on the next shipment line you create. The total quantity of scheduled shipments
for a particular line must sum to the quantity in the Items tabbed region.
Need-By
Enter a Need-By date. This field is optional unless the item is a planned item. This field is
used in several reports that relate to analyzing supplier performance.
Promised Date/Original Promise
Enter the date that the supplier promised delivery of the items. If you are subsequently
contacted by the Supplier with a different date, you will simply overwrite the previous promise
date with the new promise date. When this is done, Purchasing shifts the original promised
date into the Original Promise field so that supplier performance can be measured against these
dates. If the supplier again extends the delivery date promised, you can again overwrite the
promise date with the new promise date. The system will continue to maintain the promise
date initially provided in the original promise date field. Supplier performance can then be
measured for the time between the original promise date and the current promise date.
Suppliers can themselves update their promised delivery date through the iSupplier Portal.
Charge Account
If a shipment is purchased from a single charge account, the account number is displayed for
viewing purposes only, it cannot be updated directly in this window. If an item is being
purchased from multiple charge accounts, the word “Multiple” will be displayed, requiring you
to drill down to the Distribution level of the purchase order to see account numbers.
Amount
This is a display field which holds the results of the quantity ordered multiplied by the price.
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Purchase Orders
Chapter 7 - Page 32
Standard Purchase Order Shipment More Tabbed Region
Standard Purchase Order Shipment More

Tabbed Region
Num
Receipt Close
Tolerance (%)
Invoice Close
Tolerance (%)
Invoice
Matching
Accrue on
Receipt
Firm
Standard Purchase Order Shipment - More Tabbed Region

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Num
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Receipt Close Tolerance (%)
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Purchasing automatically closes a shipment for receiving if it is within the receipt closing
tolerance at the receiving close point. Set the receiving close point in the Purchasing Options
window.
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Invoice Close Tolerance (%)
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Purchasing automatically closes a shipment for invoicing if it is within the invoice closing
tolerance at billing, when Payables matches invoices to purchase orders or receipts.
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Invoice Matching
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Select which information will be compared to the invoice when matching. All must match
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within tolerance for the selected option.
• Two-Way: Purchase order and invoice quantities as well as purchase order and invoice
unit prices must match within tolerance before the corresponding invoice can be paid.
Purchase Orders
Chapter 7 - Page 33
The receipt close tolerance can be set to 0% to allow the system to automatically close
fully received lines.
• Three-Way: Purchase order, receipt, and invoice quantities as well as purchase order and
invoice unit process must match within tolerance before the corresponding invoice can be
paid.
• Four-Way: Purchase order, receipt, accepted, and invoice quantities as well as purchase
order and invoice unit prices must match within tolerance before the corresponding
invoice can be paid.
Accrue on Receipt
Check box to indicate that the items on this purchase order line should be accrued on receipt.
Inventory destined items always accrue upon receipt. For expense items, if the Accrue
Expense Items flag in the Purchasing Options window is set to Period End, the items cannot
accrue upon receipt, and you cannot change the shipment level default. If the Accrue Expense
Items flag is set to At Receipt, the default is to accrue upon receipt, but you can change it to
Period End.
Firm
A setting used with MRP to indicate to that module that it cannot change or suggest changes to
the details of this purchase order based on changed demand that has occurred since the order
was originally created.
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Chapter 7 - Page 34
Standard Purchase Order Shipment Status Tabbed Region
Standard Purchase Order Shipment Status

Tabbed Region
Num
Status
Ordered
Received
Canceled
Billed
Standard Purchase Order Shipment - Status Tabbed Region

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Num
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Status
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accounts payable staff.
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This status will be updated by the system based on actions taken by buyers, receivers or
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Ordered/Received/Canceled/Billed
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Quantities will be displayed to indicate the quantities that have been ordered, received,
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cancelled and billed. Quantities are updated through actions taken by buyers, receivers and
accounts payables staff.
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Purchase Orders
Chapter 7 - Page 35
Standard Purchase Order Shipment Receiving Controls Button
Standard Purchase Order Shipment

Receiving Controls Button
Standard Purchase
Order
HEADER
Receiving Controls
LINE
SHIPMENT
DISTRIBUTION
Standard Purchase Order Shipment - Receiving Controls Button

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Use the Receiving Controls window to enter receiving control information for purchase orders
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and releases. Note that controls you enter here apply to specific purchase orders/releases and
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override the receiving controls you enter in the Receiving Options window.
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Purchase Orders
Chapter 7 - Page 36
Entering Standard Purchase Order Distributions - Tabbed
Regions
Entering Standard Purchase Order

Distributions - Tabbed Regions
• The distribution portion of the standard purchase

order is comprised of three tabbed regions:
– Destination
– More
– Project
• Details required internally to generate accounting
for the shipment.
• Must be at least one distribution for each
shipment, but can be many distributions for each
shipment.
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Entering Standard Purchase Order Distributions - Tabbed Regions
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Use the purchase order Distributions window to enter distribution information for purchase
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order shipments and to view distributions that Purchasing has automatically created for you.
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You can enter multiple distributions per shipment line. You can also view on-line requisitions
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included on the purchase order enter paper requisition information in this window.
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Purchase Orders
Chapter 7 - Page 37
Standard Purchase Order Distribution Destination Tabbed Region
Standard Purchase Order Distribution

Destination Tabbed Region
Destination More Project
Num
Type
Requestor
Deliver-To/
Subinventory
Quantity
Charge Account
Accrual/Variance
Accounts
Standard Purchase Order Distribution - Destination Tabbed Region

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Num
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Type
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the following options:
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The destination type determines the final destination of the purchased items. Choose one of
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• Expense - The goods are delivered to the requestor at an expense location. The
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destination subinventory is not applicable.
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• Inventory - The goods are received into inventory upon delivery. You can choose this
option only if the item is stock enabled in the ship-to organization.
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• Shop Floor - The goods are delivered to an outside processing operation defined by Work
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in Process. You can choose this option only for outside processing items.
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Requestor
Enter the name of the person requesting the goods or services. If the purchase order was
automatically created from approved requisition lines, this field would be populated with the
name of the requestor on the requisition.
Purchase Orders
Chapter 7 - Page 38
Deliver-To/Subinventory
Enter the Deliver To location for this distribution. If the destination type is Inventory, you can
also enter the Subinventory.
Quantity
Enter the Quantity of the purchase order shipment that you want to charge to the Accounting
Flexfield. The default value comes from the quantity you enter in the Shipments window. If
you decrease the default quantity, Purchasing automatically defaults on the next distribution
line the remaining quantity you have not yet assigned to a distribution line.
Charge Account
Enter the Charge Account. When you save your changes in this window, Purchasing uses the
Account Generator to automatically create the following three accounts for each distribution:
• Charge - The account to charge for the cost of this item
• Accrual - The AP accrual account
• Variance - The invoice price variance account
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Chapter 7 - Page 39
Standard Purchase Order Distribution More Tabbed Region

More Tabbed Region
Num
Requisition
Number/Line
Online
Standard Purchase Order Distribution - More Tabbed Region

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Requisition Number/Line and Online
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The Online check box indicates whether this distribution is part of an on-line requisition. If so,
Purchasing checks the box and displays the on-line requisition number and line number, you
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cannot update this field. If this distribution does not come from an on-line requisition, enter
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the paper requisition number in this field. The default is the paper requisition number from the
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Purchase Order Preferences window, if entered.
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Purchase Orders
Chapter 7 - Page 40
Standard Purchase Order Distribution Project Tabbed Region

Project Tabbed Region
Num
Project
Task
Expenditure
Type
Expenditure Org
Standard Purchase Order Distribution - Project Tabbed Region

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Project/Task/Expenditure Type/Expenditure Org
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type, expenditure org and expenditure item date.
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If this purchase is being charged to a Project, enter the appropriate project, task, expenditure
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Purchase Orders
Chapter 7 - Page 41
Approve Standard Purchase Order
Approve Document
X Submit for Approval

Forward
OK
Approval is the last step in creating a Purchase Order.

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Integration with Workflow
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In Purchasing, all approvals are handled by Workflow. The Procurement Workflows are
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predefined workflows embedded in Purchasing. Workflow uses the approval controls and
hierarchies you define during setup as the default approval processes.
Status
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Your purchase order document will have the status Incomplete until you submit the document
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for approval. If you do not have sufficient approval authority, the status will be set to In
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Process and Workflow will forward the document to an appropriate approver. Once approval
is obtained, the status is changed to Approved.
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Communicating Approved Purchase Orders to Suppliers
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Depending on how the supplier’s record has been defined, purchase orders may be sent by
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printed document, facsimile, email, XML or through electronic data interchange (EDI). The
Approve Document window defaults the transmission method defined on the supplier, but you
can update these defaults for a particular purchase order.
Purchase Orders
Chapter 7 - Page 42
Guided Demonstration - Create a Standard Purchase Order
(Required)
Responsibility: XXPurchasing, Vision Operations
(N) Supply Base > Suppliers
Enter an attachment on a supplier then create a standard purchase order.
Instructor Note: Ensure the PO: Automatic Document Sourcing profile option is set to No.
Add a Text Attachment to your Supplier
1. Navigate to the Suppliers window
2. (N) Supply Base > Suppliers
3. Query XXIBM Corporation
4. (I) Attachments
5. Category = To Supplier
6. Description = Misc T&C
7. Data Type = Long Text
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8. Note = You decide
9. Save
On
Create a Standard Purchase Order
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10. Open the Purchase Orders window:
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11. (N) Purchase Order > Purchase Orders
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12. Type = Standard Purchase Order
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13. Supplier = XXIBM Corporation
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14. Ship-to = M1-Seattle
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15. Bill-to = V1-New York
16. Description = XXComputer Hardware
17. (T) Items
Purchase Orders
Chapter 7 - Page 43
18. Enter the items according to the following table:
Num Item Quantity Price Promised Date

1 XXSoftware 10 450 Blank
2 XXMonitor 10 250 Blank
19. Save
Note: Need-by and Promised Date are only required for planned items. However, they are used
in supplier performance reports.
Enter Terms and Conditions
20. Navigate to the Terms and Conditions window:
21. (B) Terms
22. Payment = Immediate
23. Select the Confirming Order check box.
24. Acceptance Required = Checked
25. Acceptance is required by tomorrow.
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Note: The Send Notifications for Purchasing Documents concurrent request will send a
notification to you if acceptance has not been recorded prior to the date you specify in this field.
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This request MUST be SCHEDULED to run in order for notifications to be sent!
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26. Pay On = Blank
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27. Add a note to the supplier. This note will be printed on the header of the purchase order.
28. Save
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29. Close the Terms and Conditions window to return to the Purchase Orders window.
Enter Shipments
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30. Place cursor in Item field for XXSoftware item.
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31. (B) Shipments
32. Enter the following shipments for the XXExpensed item.
Purchase Orders
Chapter 7 - Page 44
Num Org Ship-To UOM Quantity Promised
1 M1 M1-Seattle Each 4 In 1 month
2 M1 M1-Seattle Each 4 In 2 months
33. Save
34. (T) More
35. Enter information according to the following table:
Num Receipt Close Invoice Close Match Approval Invoice Match

Tolerance (%) Tolerance (%) Level Option
1 0 5 2-Way PO
2 0 5 2-Way PO
3 0 5 2-Way PO
36. Save
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Note: This is will be a 2-Way match and I don’t anticipate performing any formal receiving.
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Setting the Receipt Close Tolerance to 0% is a good idea in this case. Once the invoice is
matched to this purchase order, the status of the each shipment will automatically change to
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closed. Once all shipments are received, the status of the line will change to closed. As a result,
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no buyer intervention will be necessary to manually change the status of the line.
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37. Close the Shipments window to return to the Purchase Orders window.
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38. Place cursor in Item field for the XXMonitor item.
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39. (B) Shipments
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40. Enter the following shipments for the XXMonitor item.
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Num
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Org Ship-To UOM Quantity Promised
1 OM1 M1-Seattle Each 4 In 1 month
Purchase Orders
Chapter 7 - Page 45
41. Save
42. (T) More
43. Enter information according to the following table:
Num Receipt Close Invoice Close Match Approval Invoice Match

Tolerance (%) Tolerance (%) Level Option
1 10 5 3-Way PO
2 10 5 3-Way PO
3 10 5 3-Way PO
44. Save
46. Record your purchase order number.
Complete the Internal Distributions for the Expensed item
47. Click in the Item field for the XXSoftware item.
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48. (B) Shipments
49. (B) Distributions

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50. Complete the internal distribution according to the following table:
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Num Type Requestor Quantity
OA Charge
1 Expense Your name
l 4 & 01-520-7530-0000-000
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51. Save
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52. Close the Distributions window.
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53. Repeat the steps above until EACH shipment has ONE AND ONLY ONE completed
internal distribution.
54. Save
Purchase Orders
Chapter 7 - Page 46
Complete the Internal Distributions for the Inventory item
55. Place cursor in the Item field for the XXMonitor item.
56. (B) Shipments
Num Type Requestor Subinventory Quantity

1 Inventory Smith, Mr. Jonathon Stores 4
Note: The type of the item is Inventory. For Inventory items, the charge account cannot be
changed. Account generator builds it based on the accounts in the inventory organization!
59. Save
61. Repeat the steps above until EACH shipment has ONE AND ONLY ONE completed
internal distribution.
62. Save
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63. Close the Distributions and Shipments windows.
Approve the Purchase Order

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65. (B) Approve

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66. Submit for Approval = Checked
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67. Uncheck all other options
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68. (B) OK in the Approve Document window.
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69. (B) OK to close the note window.
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Note: The standard messages on the notes fields may be easily changed using the Application
Developer responsibility.
Place your Purchase Order on the Navigator
Purchase Orders
Chapter 7 - Page 47
70. Place your Purchase Order on the Navigator
71. (M) File > Place on Navigator
72. Note that your attachment has been automatically copied from your supplier to the purchase
order header!
Verify Distribution Information
73. Query up your PO
74. Verify that each distribution for XXSoftware has requestor information recorded.
75. Verify that each distribution for XXMonitor has requestor and subinventory information is
recorded
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Purchase Orders
Chapter 7 - Page 48
Practice - Create a Standard Purchase Order
Overview
In this practice, you will do the following:
• Create a standard purchase order for two defined items – one expense item and one
inventory item.
• Create multiple shipment lines and multiple distribution lines for one or both of the
items.
• Run select reports relevant to standard purchase orders.
Assumptions
• You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
• Responsibility selected to complete this practice is Purchasing, Vision Operations

(USA).
• Replace XX with your terminal number or initials.
Tasks
Log on to the System
Create Standard Purchase Order header

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Set Purchase Order preferences
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Enter an expense item that you need to order
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Enter shipments
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Enter distributions for the first shipment
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Enter distributions for the second shipment
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Enter an inventory item that you need to order
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Enter shipments
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Purchase Orders
Chapter 7 - Page 49
Submit your purchase order for approval
Run the Printed Purchase Orders Report (Landscape)
Run the Purchasing Activity Register
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Purchase Orders
Chapter 7 - Page 50
Solution - Create a Standard Purchase Order
Tasks

− User Name = operations
− Password = welcome
− Responsibility = Purchasing, Vision Operations
Create Standard Purchase Order header
1. Navigate to the Purchase Orders window
• (N) Purchase Orders > Purchase Orders

− Type = Standard Purchase Order
− Supplier = Advanced Network Devices
− Site = Santa Clara
− Ship-to = M1-Seattle
− Bill-to = V1-New York City
2. Navigate to the Terms and Conditions window
• (B) Terms
− Confirming Order = Check box
− Acceptance Required = Check box
− By = One week from today
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− Supplier Note = Add a note to your supplier
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Purchase Orders
Chapter 7 - Page 51
3. Close Terms and Conditions window
4. Save
Set Purchase Order preferences
5. Navigate to the Purchase Order Preferences window
• (M) Tools > Preferences

− Requestor = Adams, Mr. Brian
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6. Apply
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7. Close the Purchase Order Preferences window
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8. (T) Items
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− Num = 1
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− Item = f30000
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9.
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(B) OK to Blanket purchase order warning message
− Quantity = 10
Purchase Orders
Chapter 7 - Page 52
Enter shipments
10. Navigate to the Shipments window
• (B) Shipments
Enter the following shipments for this item:

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Num Org Ship-to UOM Quantity
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1 M1 M1-Seattle Each 4
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2 M1 M1-Seattle Each 6
& O In 2 weeks
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Purchase Orders
Chapter 7 - Page 53
11. Save
12. Place cursor on the first shipment line
13. Navigate to the Distributions window
• (B) Distributions
− Num = 1
− Quantity = 2
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− Charge Account = Allow to default
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14. Add another distribution
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− Num = 2
− Quantity = 2 (should have defaulted)
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− Charge Account = Allow to default, then override the department value to 730
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Purchase Orders
Chapter 7 - Page 54
15. Save
16. Place cursor on the second shipment line

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− Num = 1
− Quantity = 6
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− Charge Account = Allow to default
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18. Save
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Enter an inventory item that you need to order
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19. Close the Distributions window and then the Shipments window (returning to the Purchase
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Orders window
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20. (T) Items
− Num = 2
− Item = AS72111
Purchase Orders
Chapter 7 - Page 55
− Quantity = 10
− Price = $1,400
Enter shipments
21. Navigate to the Shipments window
• (B) Shipments
Enter the following shipments for this item:
Num Org Ship-to UOM Quantity Need-By

1 M1 M1-Seattle Each 4 In 1 week
2 M1 M1-Seattle Each 6 In 2 weeks
22. Save
23. Place cursor on the first shipment line
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− Num = 1
− Subinventory = Stores
− Quantity = 4
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− Charge Account = Allow to default and try to override. Why can’t you override?
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Purchase Orders
Chapter 7 - Page 56
25. Save
26. Place cursor on the second shipment line

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− Num = 1
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− Quantity = 6
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28. Save
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Submit your purchase order for approval
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29. Close the Distributions window, then the Shipments window (returning to the Purchase
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Orders window)
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30. Navigate to the Submit for Approval window
• (B) Approve
− Submit for Approval = Check box
Purchase Orders
Chapter 7 - Page 57
− Uncheck all other options
31. (B) OK
32. (B) OK
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33. Ensure that the status on the purchase order header is Approved
Run the Printed Purchase Orders Report (Landscape)

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34. Navigate to the Submit Request window
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• (N) Reports > Run
− Name = Printed Purchase Order Report(Landscape)
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− Print Selection = All
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− Purchase Order Numbers From = Your standard purchase order number
− [Purchase Order Numbers] To = Your standard purchase order number
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Chapter 7 - Page 58
35. (B) OK
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36. (B) Submit
Purchase Orders
Chapter 7 - Page 59
37. (B) No
38. Monitor progress and view output when complete
• (M) View > Requests
39. (B) Find
40. Once the request completes, (B) View Output
Run the Purchasing Activity Register

− Name = Purchasing Activity Register
− Creation Dates From and To = Today’s date
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Chapter 7 - Page 60
43. (B) Submit
44. (B) No
46. (B) Find

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Chapter 7 - Page 61
Agenda
Agenda

and releases
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Purchase Orders
Chapter 7 - Page 62
When to Use a Blanket Purchase Agreement
When to Use a Blanket Purchase

Agreement
Blanket Purchase
Agreement
Header Long-term agreement
Lines Details of goods/services

are known
Blanket
Release
Shipment Dates of delivery are not known
Distribution Accounts and dollars are

not known
When to Use a Blanket Purchase Agreement

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Blanket purchase agreements and releases allow you to negotiate stable, long-term contracts
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while maintaining flexible delivery schedules and order quantity commitments. You create
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blanket purchase agreements when you know the details of the goods or services you plan to
buy from a specific supplier, but you do not yet know delivery schedule details. You can use
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blanket purchase agreements to specify negotiated prices for your items before actually
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purchasing them.
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A blanket purchase agreement is a type of purchase order you issue before you request actual
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delivery of goods or services. You normally create a blanket purchase agreement to document
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a long-term supplier agreement.
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A blanket release is an actual order of goods or services you issue against a blanket purchase
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agreement. The blanket purchase agreement determines the characteristics and the prices of
the items. The release can be created manually or automatically.
Purchase Orders
Chapter 7 - Page 63
Blanket Releases
Blanket Releases
Releases can be created:

• Manually
• Automatically
Manual
Demand Requisition Create Releases Blanket

generated Process Release
outside
Purchasing
Blanket Releases
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Once you have an approved blanket agreement you need only create a release to authorize
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delivery of goods or services. You can create blanket purchase agreement releases using the
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following methods:
• The Releases window
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• PO Create Documents workflow
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• AutoCreate window
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• The Create Releases process
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Manually Created Releases
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You can manually enter releases against active blanket purchase agreements. You can set up
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purchasing to warn you if a blanket purchase agreement exists for items that you try to
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requisition. Because the blanket purchase agreement is in place, you can create a blanket
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release instead of submitting a requisition. If you choose not to enable to warn if a blanket
purchase agreement exists, can submit requisitions and the buyer can create the blanket release.
Automatically Created Releases
Purchase Orders
Chapter 7 - Page 64
Buyers can expedite creation of releases using the AutoCreate window or by submitting the
Create Releases program. In addition, the PO Create Documents workflow can be set up to
automatically create blanket purchase agreement releases for requisitions that are submitted,
regardless of whether their origin is the Requisitions window or iProcurement.
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Chapter 7 - Page 65
Blanket Purchase Agreements Additional Information Entered
Blanket Purchase Agreements Additional

Information Entered
Standard Purchase
Additional information is Order
entered for blanket purchase
agreements in the header, line HEADER
and price breaks purchase
order elements windows.
LINE
SHIPMENT
PRICE BREAKS
DISTRIBUTION
Blanket Purchase Agreements - Additional Information Entered

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Focus of discussion - Rather than reiterate the many fields that have already been discussed
during the creation of a standard purchase order, this section will highlight the differences
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between the blanket purchase agreement and the standard purchase order. Your instructor will
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review the previously discussed fields as needed during the demonstration of creating a blanket
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purchase agreement.
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Purchase Orders
Chapter 7 - Page 66
Blanket Purchase Agreements Additional Information - Header

Information - Header
Header Lines Price Breaks
Amount Agreed
Released
Terms and
Conditions
Blanket Purchase Agreements: Additional Information - Header

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Amount Agreed
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When creating a blanket purchase agreement, you can indicate the dollar amount of the
agreement.
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Released
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The dollar value displayed in this field is the total dollar value of all releases issued against the
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blanket purchase agreement.
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Terms and Conditions
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You can access the Agreement Controls area of the Terms button. The effective start and stop
dates for the agreement can be entered. Releases can only be created during these dates when
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the blanket is effective.
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Amount Limit
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You can optionally change the defaulted value for the Amount Limit. Initially this value is
equal to the Amount Agreed. You may provide a higher value in the Amount Limit field
which will allow the total released amount to exceed the Amount Agreed. If the total amount
released exceeds the Amount Limit, the release cannot be approved.
Purchase Orders
Chapter 7 - Page 67
Minimum Release
You can also specify a Minimum Release dollar value which will require that the dollar
amount for individual releases exceeds the Minimum Release amount set. Often you establish
the Minimum Release amount based on your estimated costs of processing individual releases.
For example, if the estimated cost of processing releases is $25, then the user may set the
Minimum Release amount to $25.
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Chapter 7 - Page 68
Blanket Purchase Agreements Additional Information - Lines

Information - Lines
Items
Price Reference
Reference
Documents
Agreement
Blanket Purchase Agreements: Additional Information - Lines

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Items Tabbed Region
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Notice that the Quantity field has been grayed out. By definition of a blanket purchase
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agreement, you are uncertain of the quantities that will be needed of each item listed. The
price that is entered for each item is for an implied quantity of one. Reduced pricing that may
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be available when purchasing larger quantities will be entered through the Price Breaks button
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that will be discussed shortly.
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Price Reference Tabbed Region
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The Allow Price Override check box is used for blanket purchase agreements and planned
purchase orders only. This check box indicates that the release price can be different from the
le
price on the purchase agreement or purchase order line. If you allow price override, enter the
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dollar amount of the Price Limit. This is the maximum price per item you allow for the item
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on this agreement line. If you do not allow a price override, Purchasing displays on the release
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the shipment price from the purchase agreement and prevents you from updating it. Select
Negotiated to indicate that the purchase price is negotiated. If the actual price is greater than
or equal to the list price, then the field is unchecked by default. If the actual price is less than
Purchase Orders
Chapter 7 - Page 69
the list price, then the field is checked as the default. You can accept the default value or
change it.
Reference Documents Tabbed Region
This tabbed region is generally not used on blanket purchase agreements unless the blanket
was created by copying a quotation. Copying purchasing documents will be discussed later in
this module.
Agreement Tabbed Region
You can establish controls at the line level if desired. Additional controls such as minimum
release amount, quantity agreed and amount agreed can be established for individual purchase
agreement lines. Whether or not you have agreed to minimum quantities or amounts, the
system will automatically keep track on this tabbed region of the quantities and amounts
actually released against the blanket. Internal quantity and amount targets not formally
negotiated as agreed to quantities or amounts with the supplier should not be entered in the
agreement. Entry of internal targets could be interpreted and enforced as legal binding to the
user.
The Cumulative Pricing check box will be enabled by default depending on a setup option in
the Purchasing Options of the default value hierarchy. The default may be changed depending
on the actual pricing negotiated with the supplier.
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Chapter 7 - Page 70
Blanket Purchase Agreements Additional Information - Price
Breaks

Information - Price Breaks
Quantity
Break Price
Discount (%)
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Blanket Purchase Agreements: Additional Information - Price Breaks
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After entering the Purchase Orders window and choosing a Type of Blanket Purchase
I
Agreement, the button normally titled Shipments changes to Price Breaks. This form
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adjustment is necessary to support reduced pricing agreements for volume purchases.
Quantity
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This quantity is not an ordered quantity, but simply a quantity that if purchased would result in
reduced pricing. The quantity indicated may need to be reached on an individual release
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(when the Cumulative Pricing check box on the Agreement tabbed region previously discussed
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is unchecked) or may be able to be reached through an accumulation of releases issued against
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the blanket purchase agreement line (Cumulative Pricing check box is checked).
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Break Price
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You will enter the reduced price that will be paid for each quantity listed.
Discount (%)
If a Break Price is entered, the Discount (%) field will display the percentage that this price is
off the price listed on the Items tabbed region for the purchase of an implied quantity of one.
Purchase Orders
Chapter 7 - Page 71
Notification Controls
Blanket Purchase Agreement

• Amount Agreed $5,000,000
• Effective Dates Jan 1 to Dec 31
Amount Not Released Amount Released Expiration
50% in the $2M in the Three months

1st six months 1st three months before expiration
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Use the Notification Controls window to enter notification controls for planned purchase
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orders, contract purchase agreements, and blanket purchase agreements. For these documents,
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you can establish expiration and release control notification conditions and specify the number
of days before the condition is met that you want to be notified. When the notification
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conditions are met, Purchasing sends you an alert, using Alert (or e-mail).
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Amount Not Released
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This control notifies you when the total planned amount released to date is less than a preset
amount or is less than the Amount Agreed on the blanket purchase agreement header
Int
multiplied by a preset percentage. For example, a user can enter an Effective To date for the
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Amount Not Released notification control of June 30. The user could further indicate a
percentage of 50% (which the system will further calculate the dollar amount of $2.5M for this
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percentage and display it in the Amount field). The user would then be notified if on June 30,
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the total amount of releases did not exceed $2.5M. Rather than indicating a percentage, the
user can provide a dollar amount and the system will calculate the percentage. Additionally,
specified percentages may be set based on prior spending trends rather than passage of time as
Purchase Orders
Chapter 7 - Page 72
appears to be the case in the example provided. You may also wish to establish multiple
Amount Not Released notification controls throughout the period of the agreement.
Amount Released
This control notifies you when the total planned amount released to date is more than a preset
amount or is less than the Amount Agreed on the blanket purchase agreement header
multiplied by a preset percentage. For example, a user can enter Effective From/To dates for
the Amount Released notification control of January 1 to March 31. Assume the user entered
$2M as the amount (which the system will further calculate the percentage of 40% by relating
the $2M to the $5M Amount Agreed). The user would then be notified if and when between
January 1 and March 31, the total amount of releases exceeds the $2M. Similar to the
discussion for the Amount Not Released, you may instead specify a percentage, set the amount
based on prior spending trends rather than the passage of time, and may also establish multiple
Amount Released notification controls throughout the period of the agreement.
Expiration
This control notifies you that the agreement is approaching expiration. The notification is sent
at specified dates prior to the effective end date of the agreement. For example, the Warning
Delay could be set at 90 for an agreement with a one year length. The system will then send a
notification to the Buyer 90 days prior to the expiration of the one year agreement that the
expiration is approaching. You often will set multiple Expiration notification controls to
ensure that sufficient progress is being made toward negotiation of a new agreement with this
supplier or a new supplier(s). This control is especially effective for items that should never be
purchased outside of agreements.
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Chapter 7 - Page 73
Approve Blanket Purchase Agreement
Approve Document
X Submit for Approval

Forward
OK
Approval is the last step in creating a Blanket Purchase Agreement

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Similar to standard purchase orders, blanket purchase agreements need to be approved. Once
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approved, blanket releases can then be issued against the blanket purchase agreement.
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Chapter 7 - Page 74
Guided Demonstration - Create a Blanket Purchase Agreement
(Required)
Create a Blanket Purchase Agreement
1. Type = Blanket Purchase Agreement
3. Site = NEW YORK
4. Amount Agreed = 10000
5. Description = XXSupplies
Specify Terms and Conditions
6. (B) Terms
7. Effective = Today + 7 days
8. Amount Limit = 11000
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9. Save
On
Note: The Amount Limit is the REAL control of whether or not releases against this blanket
may be approved.
se
10. (T) Items
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11. Select items according to the following table:
OA
l &
Num Item
rna Category Description UOM
1
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XXSoftware XX.COMPUTER Expensed Item Each
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2 XXMonitor XX.COMPUTER Inventory Item Each
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Specify Price Breaks
12. (B) Price Breaks
Purchase Orders
Chapter 7 - Page 75
13. Enter the following price break information FOR EACH item!
Num UOM Quantity Price Org Ship-To Discount%

1 Each 10 Defaults M1 M1 - Seattle 10
14. Save
15. Close the Price Breaks window.
Specify Notification Controls
16. Open the Notification Controls window:
17. (M) Tools > Notification Control
18. Condition = Expiration
Note: If the Warning Delay field does not become enabled, double check to make sure you
entered effective dates in the Terms and Conditions window!
19. In the From and To fields, set for 30, 60, and 90 days.
Condition Warning Delay From To

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Expiration 2 Defaults
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Defaults
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Defaults
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20. Save
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21. (B) Done
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Note: These Notifications are controlled using Oracle Alerts. The alerts must be activated in
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order for the conditions to be checked and the notifications to be sent.
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22. Record your Blanket Purchase Agreement number.
23. (B) Approve
Purchase Orders
Chapter 7 - Page 76
26. (B) OK
27. (B) OK in the Note window
30. Close windows until you are back at the Navigator
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Chapter 7 - Page 77
Blanket Purchase Agreement and Blanket Releases
Blanket Purchase Agreement and Blanket

Releases
Cumulative
Release #/$s Release $s
#101 $ 5,000 $ 5,000
#120 $12,000 $17,000
Blanket Purchase
Agreement #208 $ 9,000 $26,000
Blanket Purchase Agreement and Blanket Releases

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Once a blanket purchase agreement has been approved, you can begin creating blanket releases
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against the agreement. Suppliers will be provided the additional information, such as
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quantities and shipping details, needed to make actual delivery of the items on the agreement.
Details regarding releases are covered in the next few pages. Once you have provided
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complete shipment and distribution detail, the release needs to be approved before it is sent to
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the supplier. The approval process for releases is the same as the approval process for the
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blanket purchase agreement.
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Purchase Orders
Chapter 7 - Page 78
Blanket Releases Structure - Header
Release Header Blanket #

Release #
Supplier/Site
Buyer
Status
Total
Shipment 1
Acceptance Req’d
Distribution 1 Distribution 2

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Release Header
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When creating a new release, you will enter the blanket purchase agreement number. A list of
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values is available to assist you in selecting the appropriate agreement. Once selected, the next
available release number will be assigned and the supplier, site and buyer from the agreement
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will be displayed. You can override the default as long as the Enforce Buyer Name option is
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not enabled in the Purchasing Options window.
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The status will be updated based on actions taken in the system. A total amount for the release
will be displayed as items are ordered in the Shipments window. You can further indicate to
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MRP whether this release is firm or can be changed and whether acceptance is requested of the
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supplier to acknowledge that they received the release.
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Receiving Controls Button
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Use the Receiving Controls window to enter receiving control information for purchase orders
and releases. Note that controls you enter here apply to specific purchase orders/releases and
override the receiving controls you enter in the Receiving Options window.
Agreement Button
Purchase Orders
Chapter 7 - Page 79
You can access basic information regarding the blanket purchase agreement through the
Agreement button. For example, you will see amount agreed, buyer, amount released, status,
effective dates and various payment terms from the blanket purchase agreement.
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Purchase Orders
Chapter 7 - Page 80
Blanket Releases Structure Shipments and Distributions
Blanket Releases Structure Shipments and

Distributions
Release Header
Tabbed Regions Shipment 1

Shipments
More
Status
Item
Tabbed Regions Distribution 1 Distribution 2

Destination
More
Project
Blanket Releases Structure - Shipments and Distributions

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Shipments Tabbed Region
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Entry into this tabbed region is exactly like entry of shipments information on the shipments
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tabbed region of the standard purchase order with one exception. When you enter the Line
field, you are simply entering the line number for the item you want to order from the blanket
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purchase agreement. Unless a user knows what the line number is, you should access the list
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of values which will provide the item name and description in addition to the line number.
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Once the line number is selected, the associated item name and description are displayed near
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the bottom of the window.
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More, Status and Item Tabbed Region
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Entry into these tabbed regions is exactly like entry of shipments information on the the same
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tabbed regions of the standard purchase order.
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Distributions Window
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Entry into all tabbed regions of the distributions window is exactly like entry of distributions
information on the the same tabbed regions of the standard purchase order.
Purchase Orders
Chapter 7 - Page 81
Guided Demonstration - Create a Blanket Release (Required)
(N) Purchase Orders > Releases
Create and Approve a Release
1. In the PO, Rev field, use the list of values to select your blanket purchase agreement
number.
2. (T) Shipments
3. Place cursor in the Line field
4. [Ctrl + L] to invoke the List of Values
5. Note the lines you see are the two lines from your Blanket Purchase Agreement!
6. Select the XXSoftware item.
7. (B) OK
8. Organization = M1
9. Ship-To = M1-Seattle
10. Quantity = 10
11. Promised = Today’s date

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12. Save
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13. (B) Approve
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16. (B) OK to approve the Release
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17. Click OK to close the note window.
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18. (B) Agreement
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19. Note the total amount released against the blanket purchase agreement.
Purchase Orders
Chapter 7 - Page 82
Practice - Create a Blanket Purchase Agreement and Blanket
Release
Overview
• Create a blanket purchase agreement for two items which will establish pricing for the
items, although the quantity and delivery dates/locations are not known.
• Create a blanket release against the agreement for your first order of these items.
Assumptions

(USA).
Tasks
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Create a blanket purchase agreement
Enter your first item - Paper

On
Enter price breaks for volume purchases
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Enter your second item - Desk
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Enter notification controls so that you’ll be warned by the system of certain
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situations that are either expected or might occur with this blanket purchase
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agreement.
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Submit your purchase agreement for approval
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Issue a blanket release to place your first order against the agreement
Submit your blanket release for approval
Purchase Orders
Chapter 7 - Page 83
Increase your quantity ordered to 3 so that the release will be above the minimum
release amount
Return to the Blanket Purchase Agreement to view how it was updated as a result
of the release
Run the Purchase Order and Releases Detail Report
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Purchase Orders
Chapter 7 - Page 84
Solution - Create a Blanket Purchase Agreement and Blanket
Release
Create a blanket purchase agreement

− Type = Blanket Purchase Agreement
− Supplier = Southern Office Supplies
− Site = SOS MAIN
− Amt Agreed = $20,000
2. Navigate to the Terms and Conditions window
• (B) Terms
− Pay On = Blank
− Agreement Controls/Effective Dates = Enter dates starting Today and extending for
one year
− Amount Limit = $21,000
− Minimum Release = $50
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Purchase Orders
Chapter 7 - Page 85
4. Save
Enter your first item - Paper
5. (T) Items
− Num = 1
− Item = f20000

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6. Navigate to the Price Breaks window
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• (B) Price Breaks
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Enter the following price breaks for this item:
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Num Org
ern Ship-to
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Quantity Break Price
1 M1
In M1-Seattle 10 $19.00
2
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M1 M1-Seattle 20 $18.00
3
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7. Save
Purchase Orders
Chapter 7 - Page 86
Enter your second item - Desk
8. (T) Items
− Num = 1
− Item = f11000
− Price = $1,000.00
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9. Navigate to the Price Breaks window
• (B) Price Breaks

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se
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Enter the following price breaks for this item
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Num Org Ship-to Quantity
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Break Price
&
1 M1 M1-Seattle
al 5 $950.00
2 M1 M1-Seattle
ern 10 $900.00
3 M1
n
M1-Seattle
I t 15 $850.00
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10. Save
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Purchase Orders
Chapter 7 - Page 87
Enter notification controls so that you’ll be warned by the system of certain
situations that are either expected or might occur with this blanket purchase
agreement.
11. Close the Price Breaks window
12. Navigate to the Notification Controls window
• (M) Tools > Notification Control
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Enter controls to warn you of upcoming expiration of the agreement 120 days prior and 60 days
prior to the effective end date.
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Condition Warning Delay From
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To % Amount
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Defaults
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N/A N/A
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Expiration 60 Defaults Defaults N/A N/A
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Enter controls to warn you if by 6 months into the agreement, you haven’t released at least 50%
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of the amount agreed.
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Amount Not Released
Warning Delay
N/A
From
Today Six Months from
To %
50
Amount
Default
Today
Purchase Orders
Chapter 7 - Page 88
13. (B) Done
14. (B) OK
Submit your purchase agreement for approval
• (B) Approve
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17. (B) OK
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18. Ensure that the status on the purchase order header is Approved and record your blanket
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number __________
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Issue a blanket release to place your first order against the agreement
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19. Navigate to the Releases window
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•
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(N) Purchase Orders > Releases
− PO, Rev = Your PO number from the blanket agreement
20. (T) Shipments
Purchase Orders
Chapter 7 - Page 89
− Line = open the list of values and select the f20000-Paper item
− Quantity = 2
− Need-By = One week from today

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• (B) Approve
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Purchase Orders
Chapter 7 - Page 90
22. Why can’t it be approved?
23. (B) OK
Increase your quantity ordered to 3 so that the release will be above the minimum
release amount
24. Place your cursor in Quantity field and increase to 3
25. Save
• (B) Approve
27. (B) OK
28. (B) OK
Return to the Blanket Purchase Agreement to view how it was updated as a result
of the release
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30. Using either find or query functionality, locate your blanket purchase agreement
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31. Notice the value in the Released field is $60 – the amount of your first release.
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32. What would happen to this value if you issue another release with a value of $1,800?
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Purchase Orders
Chapter 7 - Page 91
Run the Purchase Order and Releases Detail Report

− Name = Purchase Order and Releases Detail Report
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− Purchase Order Numbers From = Your blanket purchase agreement number
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− [Purchase Order Numbers] To = Your blanket purchase agreement number
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Purchase Orders
Chapter 7 - Page 92
34. (B) OK
35. (B) Submit
36. (B) No

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Chapter 7 - Page 93
Agenda
Agenda

and releases
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Purchase Orders
Chapter 7 - Page 94
When to Use a Contract Purchase Agreement
When to Use a Contract Purchase

Agreement
Contract Purchase Agreement:

• Terms and conditions are known
• Details of goods or services are not known
• Reference contract purchase agreements directly
on standard purchase order lines
Standard PO 1 Delivery 1
Contract purchase
agreement
Standard PO 2 Delivery 2
When to Use a Contract Purchase Agreement

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Definition
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You create contract purchase agreements with your suppliers to agree on specific terms and
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conditions without indicating the goods and services that you will be purchasing. A contract
purchase agreement is an agreement between you and a supplier for unspecified goods or
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services. This agreement may include terms and conditions, committed amount and an
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effective and expiration date. Contract purchase agreements are referenced on standard
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purchase order lines. Purchasing monitors the amount you have spent against contract
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purchase agreements.
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Focus of discussion
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Rather than reiterate the many fields that have already been discussed during the creation of a
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standard purchase order, this section will highlight the differences between the contract
purchase agreement and the standard purchase order. Your instructor will review the
previously discussed fields as needed during the demonstration of creating a contract purchase
agreement.
Purchase Orders
Chapter 7 - Page 95
Contract Purchase Agreements Additional Information Entered
Contract Purchase Agreements Additional

Information Entered
Contract Purchase
Additional information is entered Agreement
for contract purchase agreements
in the header element window. Header
Once the contract is approved,

you issue standard purchase Standard PO
orders referencing the contract Header
through the Line windows/Reference
Documents tabbed region. Line
Shipment
Distribution
Contract Purchase Agreements: Additional Information Entered

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Header
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expiration dates.
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This agreement may include terms and conditions, committed amount, and effective and
Amount Agreed
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When creating a contract purchase agreement, you can indicate the dollar amount of the
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agreement.
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Released
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The dollar value displayed in this field is the total dollar value of all standard purchase order
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lines referencing the contract.
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Terms and Conditions
You can access the Agreement Controls area of the Terms button. The effective start and stop
dates for the contract can be entered. Standard purchase orders can only reference the contract
during its effective dates. Part of the terms and conditions could include a percentage discount
Purchase Orders
Chapter 7 - Page 96
off list prices for all products the supplier sells or different discounts for different groups of
products. For example, maybe they’ll give you a 10% discount on equipment and a 20%
discount on office supplies. You can optionally change the defaulted value for the Amount
Limit. Initially this value is equal to the Amount Agreed. You may provide a higher value in
the Amount Limit field which will allow the released amount to total in excess of the Amount
Agreed, but not higher than the Amount Limit. Compliance with agreed upon terms and
conditions will be monitored after purchases are made to ensure things like item pricing or
delivery times are in agreement with any discounts stated in the contract.
Line, Shipment and Distribution Windows
Although these windows appear as part of the Purchase Order form, you cannot enter these
details on a contract purchase agreement. These details will be provided once the contract is
approved as standard purchase orders are issued with reference to the contract.
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Purchase Orders
Chapter 7 - Page 97
Standard Purchase Order Line Reference Documents Tabbed
Region
Standard Purchase Order Line Reference

Documents Tabbed Region
Standard Purchase
Items Order
Price Reference
HEADER
Reference Documents
Num, Contract, Quotation,
Line, Quotation Type,
LINE
Supplier Quotation
More
SHIPMENT
DISTRIBUTION
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Standard Purchase Order Line - Reference Documents Tabbed Region
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Contract
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You cannot enter a contract number until you have entered a supplier in the header, and the
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contract must be for this supplier. The contract you choose must be effective; that is, the
current date has to be within the effective date and the expiration date of the contract. If you
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reference a contract purchase agreement on a standard purchase order line, Purchasing adds the
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total amount of the purchase order line to the total amount of the contract purchase agreement
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after the purchase order is approved. Purchasing lists only those contracts with the same
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supplier as the one on your standard purchase order.
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Automating Purchase Order Generation
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Automatic generation of standard purchase orders referencing contract purchase agreements
can be done using the PO Create Documents workflow. For more information see the
Automatic Document Creation topic or refer to the “Workflow for Creating Purchase Orders
and Releases” topic in the Purchasing Users Guide.
Purchase Orders
Chapter 7 - Page 98
Guided Demonstration - Create a Contract Purchase Agreement
(Required)
Create a Contract Purchase Order
1. Type = Contract Purchase Agreement
3. Site = NEW YORK
4. Ship-To = M1-Seattle
5. Bill-To = V1-New York
6. Amount Agreed = 10000
7. Save
8. Record the number of your Contract Purchase Agreement.
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9. (B) Terms
10. Payment Terms = Immediate

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11. Effective From = Today
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12. Effective To = One week from today
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13. Amount Limit = 10000
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14. Save
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15. Close the Terms and Conditions window.
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Approve the Document
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16. (B) Approve
Purchase Orders
Chapter 7 - Page 99
19. (B) OK
Associate with Contract with Standard Purchase Order Lines
24. Create a standard purchase order.
25. Select the Reference Documents tab and enter the contract agreement number.
26. Save and approve your purchase order.
27. Record the number of your standard purchase order.
Note: If the total amount of the purchase orders associated with the contract exceeds the
contract, the purchase order cannot be approved.
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Chapter 7 - Page 100
Practice - Create a Contract Purchase Agreement
Overview
• Create a contract purchase agreement to establish general terms and conditions with this
supplier. Items, quantities and delivery dates/locations are not known.
• Create a standard purchase order referencing the contract.
Assumptions

(USA).
Tasks
Create a contract purchase agreement
Submit your contract agreement for approval

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Issue a standard purchase order referencing the contract
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Submit your standard purchase order for approval
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Return to the Contract Purchase Agreement to view how it was updated as a
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result of the release
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Run the Contract Status Report
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Purchase Orders
Solution - Create a Contract Purchase Agreement
Create a contract purchase agreement

− Type = Contract Purchase Agreement
− Supplier = Consolidated Supplies
− Site = DALLAS
− Amt Agreed = $10,000
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Navigate to the Terms and Conditions window
• (B) Terms
− Payment Terms = Immediate
Purchase Orders
− Agreement Controls/Effective Dates = Enter dates starting Today and extending for
six months
− Amount Limit = $10,000
4. Save
Submit your contract agreement for approval

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• (B) Approve
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6. (B) OK
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7. (B) OK
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8.
nt
Ensure that the status on the purchase order header is Approved and record your contract
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number __________
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Issue a standard purchase order referencing the contract
9. O
Navigate to the Purchase Orders window

Purchase Orders
− Supplier = Consolidated Supplies
− Site = DALLAS
10. (T) Items

− Num = 1
− Item = AS80001
− Quantity = 10
− Price = $50.00
− Need-By = Two weeks from today
11. (T) Reference Documents

− Contract = Your PO number that was assigned to the contract.
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12. Enter shipments for this item
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(B) Shipments
O− Org = M5
− Ship-To = M5-Denver
13. Enter distributions for this shipment
Purchase Orders
14. Save
Submit your standard purchase order for approval
• (B) Approve
16. (B) OK
17. (B) OK
18. Ensure that the status on the purchase order header is Approved and record your contract
number __________
Return to the Contract Purchase Agreement to view how it was updated as a

result of the release
20. Using either find or query functionality, locate your contract purchase agreement
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21. Notice the value in the Released field is $500 – the amount of your first release.
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22. What would happen to this value if you issue another release with a value of $2,000?
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Purchase Orders
Run the Contract Status Report

− Name = Contract Status Report
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− PO Numbers From and To = Your contract purchase agreement number
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24. (B) OKa
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Purchase Orders
25. (B) Submit
26. (B) No
28. (B) Find

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Purchase Orders
Agenda
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and releases
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Purchase Orders
Purchase Order Inquiry
• Use the Purchase Order Summary window

– Optionally create a custom user layout of form
• Use the Tools menu to view associated
– Requisitions
– Receipts
– Invoices
– Action History
• Use the Purchase Order window
– Find functionality
– Query functionality

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You will frequently need to find information from a purchase order. Several options are
available to assist you in this effort.
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Use the Purchase Order Summary Windows
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You can enter a variety of search criteria to locate records at the header, line, shipment or
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distribution levels of the purchase order. Buttons located at the bottom of the form allow you
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to view more or less detail than the level at which you initially searched. For example, assume
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you initially searched for shipment lines. From there you can move higher on the purchase
order to view items or you can drill down to view distributions. Optionally, you can create a
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custom user layout of this form using Oracle’s folder technology. Custom layouts can be
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defined as the default folder and can be shared with others.
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Use the Tools Menu to View Associated Records
From the purchase order lines, you can view associated requisitions, receipts, and invoices.
Some of the associated documents can only be viewed when query results are at a particular
level of the purchase order. For example, you cannot view associated requisitions when
Purchase Orders
viewing purchase order query results at the header level. Additionally, you can view a history
of activities performed on each document. This functionality is available through the Tools
menu, View Action History option on many windows. Activities will be listed in
chronological order with the most recent activity appearing first.
Use the Purchase Order Window

You can look for purchase order information using either query or find functionality.
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Purchase Orders
Modifying Purchase Orders
You can access and modify your purchase orders
• Reapproval Rules
• Revision numbering of purchase orders

– PO #1245
– PO #1245-1 1st revision
– PO #1245-2 2nd revision

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Once the desired purchase order is brought to the current record using the various methods
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previously discussed for locating documents, you can make necessary changes to the
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distributions, etc.
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document. For example, you may adjust quantities, shipping addresses, need-by dates,
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Affect of Changes on Approval
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Most changes cause the document’s status to be updated to Requires Reapproval. Once the
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document has been reviewed by someone with approval authority, they will either approve or
reject the document. Generally, all changes affecting the supplier’s ability to accurately fill the
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order will require reapproval. Controlled changes unapprove either the document header alone
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or both the header and its shipments. However, you can continue to receive against approved
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shipments even when the header is unapproved.
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Revision Numbering of Purchase Orders
Depending on the type of modification made to a purchase order, Purchasing may increment
the revision number on the document.
Purchase Orders
Printing Purchase Orders
• Only approved purchase orders can be printed

• From the Submit for Approval window:
– Default communication method checked according
to supplier definition
• Select the Printed Purchase Order report from the
Reports menu
Printed purchase order

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Purchase orders can be printed on demand or through a scheduled print process. Purchase
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orders sent to suppliers need to be approved. Various criteria are available as parameters on
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the Printed Purchase Order report to selectively print certain purchase orders. For example,
you could print only new purchase orders or only changed purchase orders or both. You could
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print a single purchase order or a range of purchase orders and also have the option of printing
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in test mode if needed. You will frequently reformat the output of the Printed Purchase Order
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Report delivered with the system. Typical changes made include adding company logos,
background design or borders and outlines. You can make these report changes by taking a
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copy of the current report and then adjusting the copy using Oracle Reports (included in the
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Developer suite of applications).
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Purchase Orders
Creating Purchase Order Revisions
Two “Archiving” Options
At the time of At the time of

approval printing

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Purchase order revisions are created through archiving which is the process of recording all
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historical versions of approved purchase orders. Purchasing automatically archives a purchase
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order when you approve it for the first time. Purchasing subsequently archives your purchase
orders either during the reapproval process or as a result of printing. You can create multiple
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revisions of your purchasing documents (standard purchase orders, planned purchase orders,
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blanket purchase agreements and contract purchase agreements). All revisions begin at 0, and
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Purchasing increments this revision number by 1 when you make changes to controlled
information and the current revision number is equal to the archived number. Purchasing
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prints the most current revision to send to the supplier. As a result, the first revision that you
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print might not be 0 if you are archiving on approval. If you’re sending purchase orders
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through EDI, then archiving must be set to approval rather than printing. Use the Document
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Types window to set whether each of these documents is archived upon approval or upon
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printing. This window will be discussed in more detail in the Document Security, Routing and
Approval module.
Purchase Orders
Archiving Purchase Orders

Approval Printing
Archive Current Archive Current
Action
Revision Revision Revision Revision
Step 1: Create/save PO None 0 None 0
Step 2: Approve PO 0 0 0 0
Step 3: Change quantity 0 1 0 0
Step 4: Reapprove PO 1 1 0 0
Step 5: Print PO 1 1 0 0
Step 6: Add an item 1 2 0 1
Step 7: Reapprove PO 2 2 1 1
Step 8: Print PO 2 2 1 1

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At the Time of Approval
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using this option.

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more frequently. Therefore, revision numbers will generally be higher on documents when
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At the Time of Printing
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When archiving is set to occur at the time of printing, revision numbers may be generated less
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frequently. Therefore, revision numbers will generally not be as high on documents when
using this option.
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Purchase Orders
Purchase Order Statuses - Typical Cycle

Submit for Approval Incomplete
Requires Reapproval In Process

On Hold
No
Rejected Approve?
Yes Frozen
Pre-Approved Closed
Open
No
Approve?
Yes
Canceled
Approved
Finally Closed
Changes Made

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Above is an example of a typical cycle for purchase order statuses. The initial status is
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Incomplete until submitted for approval. The status is updated to In Process until it is either
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Pre-Approved, Approved or Rejected. Once approved, many changes made to purchase
orders result in a status of Requires Reapproval. Once reapproved, the status is again
Approved.
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Where to Update Statuses
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Purchase order statuses can be updated either in the Purchase Order window or in the Purchase
Order Summary window. Actions available to effect statuses will be different dependent on
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the current document status and where you are updating.
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Review of Status Types
• Incomplete - Initial status on all new purchase orders.
• In Process - Status of the document when it’s sitting on the “desk” of the approver
identified in your security, routing and approval setups.
Purchase Orders
• Approved - A user with sufficient authority has reviewed and approved the document.
• Rejected - Status of the document when the approver has denied approval.
• Requires Reapproval - Status of the document when controlled changes have been made
to the document.
• Frozen - You can freeze only at the header and release level. You freeze a purchase
order when you want to prevent any future modifications to the purchase order. When
you freeze a purchase order, you can still receive and pay for goods you already ordered.
• On Hold -You can place a purchase order on hold only at the header level. This
unapproves the purchase order while preventing printing, receiving, invoicing, and future
approval until you remove the hold.
• Closed - Purchasing automatically closes shipments for receiving and invoicing based on
controls that you specify in the Purchasing Options window. Once all shipments for a
given line are closed, Purchasing automatically closes the line. When all lines for a given
header are closed, Purchasing automatically closes the document. Purchasing does not
include closed shipments in the Open Purchase Order reports.
- Closed for Receiving - You can close for receiving at the header, release, line, and
shipment levels. Note that if you close for receiving a purchase order header that is
currently open, Purchasing sets the status of all purchase order shipments to Closed
for Receiving, but the purchase order lines and header remain open.
- Closed for Invoicing - You can close for invoicing at the header, release, line, and
shipment levels. Note that if you close for invoicing a purchase order header that is
currently open, Purchasing sets the status of all purchase order distributions to
Closed for Invoicing, but the purchase order lines and header remain open. The
Close for Invoicing status does not prevent you from matching an invoice to a
purchase order or to a receipt. You can close and reopen documents and their
components for invoicing and receiving using the Control Document window.
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Open - You can reopen documents (at the header, release, line and shipment levels) that
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have been previously closed to allow additional actions to be performed.
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Canceled - Purchasing lets you terminate an existing commitment to buy from a supplier
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by canceling document headers, lines, shipments, or releases. When you cancel a
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purchase order entity, you are unable to receive or pay for cancelled items and services,
however, you can pay for all previously received orders. Canceled actions are permanent
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and can not be reversed. If you are using online requisitions, Purchasing returns unfilled
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requisitions associated with cancelled purchase order entities to the requisition pool
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based on the Cancel Requisitions control you specify in the Purchasing Options window.
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Finally Closed - Prevent modifications to or actions against completed documents, lines,
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and shipments by final closing them. Final-closed documents are not accessible in the
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corresponding entry forms, and you cannot perform the following actions against final-
closed entities: receive, transfer, inspect, deliver, correct receipt quantities, invoice,
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return to supplier, or return to receiving. You can approve documents that include final-
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closed entities, but you cannot approve documents that are final closed at the header
level. Final closing documents is an internal control action that has no bearing on your
contractual relationship with the supplier. You cannot undo a final-close action.
Purchase Orders
Note: Only documents that have never been approved can be deleted. Optionally, you can
delete unapproved lines, unapproved shipments and unapproved distributions added to
previously approved documents. Deleted records cannot be viewed once the action is saved.
If you are using automatic numbering, you cannot reuse document numbers that you delete
with this option. If you use online requisitions, Purchasing returns all requisitions associated
with your delete action to the requisition pool. You can reassign these unfilled requisitions to
other purchase orders or releases.
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Purchase Orders
Entering Purchase Order Acceptances
Entering Purchase Order Acceptances
• Action
• Action Date
• Accepted By
• Accepted
• Acceptance Type
Entering Purchase Orders Acceptances

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When you select the Acceptance Required check box in the terms and conditions of purchasing
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documents, you require your supplier to formally accept your purchase agreement offer. By
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choosing Acceptances from the Tools menu from the Purchase Order and Releases window,
you can access the window to enter acceptances. Suppliers can enter their own acceptances
using iSupplier Portal
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Enter the results of your supplier follow-up. This a free-form field with no list of values. You
can easily record the type of follow-up you performed such as Follow-up telephone call,
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Follow-up letter, or Fax follow-up. You can also use this field to record the outcome of the
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Action Datee
follow-up such as Will call back, No answer, Schedule slippage, or Cannot fulfill order.
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Enter the date the action occurred on. The default is today’s date, but you can override to
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another date.
Accepted By
Enter the person who performed the action. Your name is the default, but you can change to
any other name from the employee list of values displayed.
Purchase Orders
Accepted
Check this box to indicate that the supplier accepted the purchase order.
Acceptance Type
Select the acceptance type from the seeded options below.
• Accepted All Terms - The supplier accepted all the terms of the purchase order.
• On Schedule - The supplier agreed to meet the delivery dates on the purchase order.
• Unacceptable Changes - The supplier made modifications to the terms of the purchase
order that you do not find acceptable.
You can define additional acceptance types through the Purchasing Lookup Codes.
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Purchase Orders
Workflow Notifications
PO#325
Electronic
Kevin Jones
notification
Incomplete
PO#325 requires your attention.

Kevin
Its status is Incomplete.
REQ#577
Sue Smith Electronic
Requires notification
Reapproval
REQ#577 requires
your reapproval. Sue
REQ#583 Electronic
Joe Holt notification
Rejected
REQ#583 has
been rejected. Joe
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The workflow PO Send Notifications for Purchasing Documents notifies you of various
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situations that have occurred with your purchasing documents. Among the situations for
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which you’ll be notified include documents with statuses of incomplete, rejected, or requires
reapproval. This workflow will also notify you when the date supplier acceptances were
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requested has passed without acknowledgement of their acceptance. You can view and
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respond to these notifications through the Notifications Summary window. This workflow
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process is initiated by submitting the Send Notifications for Purchasing Documents process.
You will normally schedule that process to run on at least a daily basis.
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Opening a Document
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From a notification that you have opened, you can also drill down to the document. Depending
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on the function security assigned to your responsibility, you have varying levels of access to
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information. After you modify a document opened through the notification, you must return to
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the notification and choose Approve there, not in the document itself, so that Purchasing can
record your approval action and continue with or complete the approval process. Depending
on the notification message, recipients will be able to take actions such as approve, reassign,
forward, reject, ignore, or close.
Purchase Orders
Copying Purchase Orders
FROM TO
Standard Purchase Order Standard Purchase Order
Blanket Purchase Agreement Blanket Purchase Agreement
or RFQ
Planned purchase order Planned purchase order
Bid quotation Standard or planned
(Bid quotation class) purchase order
Self-defined Bid quotation (Bid Standard or planned
quotation class) purchase order
Catalog or Standard quotation Blanket purchase agreement
(Catalog quotation class)
Self-defined Catalog or Blanket purchase agreement
Standard quotation
(Catalog quotation class)

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You can copy purchase orders of any status. Above is a list of the documents that can be
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copied from and to. This feature is particularly helpful if, for example, you want to renew a
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blanket purchase agreement that contains hundreds of lines. Rather than manually entering the
same lines again into a new document, you can copy the previous agreement to a new
agreement and change the effectivity dates.
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How to copy documents:
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• Query the document you want to copy from the Purchase Orders, Purchase Order
Summary, or Quotations windows.
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• Choose Copy Document from the Tools menu.
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• Select an eligible To Document Type.
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• Select other options if needed.
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O- Document Number: Enter a document number only if you use manual numbering.
- Copy Attachments: Check this box to copy an attachment from any level of the
document.
Purchase Orders
Purchasing creates and displays the new document. The document is an exact copy of the
original except for the Promised and Need-By dates; if these dates are past dates, they change
to today’s date on the new document. Effectivity dates, if any, do not change. Modify the
document if needed. Save and approve the document. If information in the document you
have just copied is invalid or outdate. For example, if a supplier or account is inactive or
invalid, a message window appears after you choose Approve. Use this window to help you
identify and correct invalid or outdated fields in the new document you are creating. You
cannot approve the document until you update these fields appropriately. You cannot use the
Copy Documents window to modify documents by copying from one document to another
with the same document number.
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Purchase Orders
Agenda
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and releases
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Purchase Orders
Reports
Reports
Blanket and Planned PO Status Report
Canceled Purchase Orders Report
Contract Status Report
Open Purchase Orders Report (by Buyer)
Open Purchase Orders Report (by Cost Center)
Printed Change Orders Report (Landscape)
Reports
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Blanket and Planned PO Status Report
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Review blanket and planned purchase orders and related releases.
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Canceled Purchase Order Report
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Review canceled purchase orders.
Contract Status Report
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Review the status of contracts and list purchase orders regarding each contract.
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Open Purchase Orders Report (by Buyer)
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Review all or specific purchase orders for specific buyers.
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Open Purchase Orders Report (by Cost Center)
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Review all or specific purchase orders charged to one or more cost centers.
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Printed Change Orders Report (Landscape)
Print changed purchase orders in landscape
Purchase Orders
Reports
Reports
Printed Change Orders Report (Portrait)
Printed Purchase Order Report (Landscape)
Printed Purchase Order Report (Portrait)
Purchase Agreement Audit Report
Purchase Order Commitment by Period Report
Purchase Order Detail Report
Purchase Order Distribution Detail Report
Reports (continued)
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Printed Change Orders Report (Portrait)
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Print changed purchase orders in portrait format.
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Printed Purchase Order Report (Landscape)
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Print purchase orders in landscape format.
Printed Purchase Order Report (Portrait)
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Print purchase orders in portrait format.
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Purchase Agreement Audit Report
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Review items purchased on a standard order that could have been purchased on a blanket.
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Purchase Order Commitment by Period Report
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Review the monetary value of commitments for the next six periods for one or all suppliers.
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Purchase Order Detail Report
Review details for all or specific standard or planned purchase orders.
Purchase Order Distribution Detail Report
Review accounting distributions for purchase orders.
Purchase Orders
Reports
Reports
Purchase Order and Releases Detail Report
Purchase Summary Report by Category
Purchasing Activity Register
Reports (continued)
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Purchase Order and Releases Detail Report
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Review details (quantity ordered, received, billed and expected) for blanket purchase
agreements, planned purchase orders and associated releases.
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Purchase Summary Report by Category
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Review the number of orders placed with suppliers for a given category.
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Purchasing Activity Register
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Review purchase order monetary activity for a period of time.
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Purchase Orders
Summary
Summary
You should now be able to do the following:

• Create standard, blanket and contract
purchase documents
• Create blanket purchase agreement releases
• Maintain purchase orders
considerations
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Purchase Orders
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Automatic Document
Creation
Chapter 8
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Automatic Document Creation

Chapter 8 - Page 1
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Chapter 8 - Page 2

Requisitions
Catalog
Content Purchase
Management Orders
Ordering
RFQs/ Receiving
Sourcing
Quotations
Invoice/
Analysis
Payment
Supplier
Supplier
Performance
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Chapter 8 - Page 3
Objectives
Objectives
After completing this module you should be able to do

the following:
• Use the AutoCreate window to automate the
creation of purchase documents
• Use the Create Releases program to generate
blanket purchase agreement releases
• Understand how the PO Create Documents
workflow can automatically create purchase
documents without buyer intervention
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Chapter 8 - Page 4
Agenda
Agenda
• Understand AutoCreate
• Understand the Create Releases program
• Understand the PO Create Documents workflow
considerations
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Chapter 8 - Page 5
Creating Purchase Documents from Requisitions
Creating Purchase Documents from

Requisitions
Requisition Pool
AutoCreate Create Workflow

Releases
Purchase Documents
Creating Purchase Documents from Requisitions

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AutoCreate
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pool. Those requisitions can be used as a basis for creating RFQs, standard purchase orders,
blanket purchase agreement releases and planned purchase orders. Buyer intervention is
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required to search the requisition pool and create the purchase documents.
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Use the Create Releases Program
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The Create Releases program is a concurrent request that may be scheduled to run periodically.
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The Create Releases program can be used to generate blanket purchase agreement releases.
Buyer intervention to be eliminated for certain types of purchases by using the Create Releases
program.
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Workflow
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The PO Requisition Approval workflow automatically runs the PO Create Documents
workflow. Depending upon your implementation decisions, the PO Create Documents
workflow will end with unapproved or approved standard purchase orders or blanket purchase
agreement releases. Using the PO Create Documents workflow can make it possible to
eliminate buyer intervention for certain types of purchases.

Chapter 8 - Page 6
Benefits of Using AutoCreate
Benefits of Using AutoCreate
• Simplifies consolidation of similar requests

• Ensures ordering from negotiated sources
• Expedites fulfillment of goods and services
• Streamlines procurement process
Benefits of using AutoCreate

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The AutoCreate window can be used to search for requisition lines for specific items or similar
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items. After finding requisition lines, you can make decisions about how to consolidate similar
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requests and ensure the resulting purchase documents are sent to the appropriate suppliers.
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Chapter 8 - Page 7
Overview of AutoCreate
Automatic
creation
Requisition PO
line
pool
Manual
Query available
creation
requisition lines
Choose lines
from PO
query results
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(N) AutoCreate
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Requisition Line Pool
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To create blanket purchase releases, standard purchase orders or planned purchase agreements,
the requisition line must have a status of Approved and not be associated with an existing
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purchase document. For RFQs the requisition lines do not need to have a status of Approved.
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Externally sourced requisition lines can be for system items (including outside processing
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items) or one-time items (a description and a category). Internally sourced requisition lines are
supplied by internal sales orders and are not available for AutoCreation.
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Automatic Creation
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Use Automatic Creation mode to create purchase orders, blanket releases, planned purchase
orders or RFQs with a minimum number of keystrokes.

Chapter 8 - Page 8
Manual Creation
Use manual creation mode to create purchase orders, blanket releases, planned purchase orders
or RFQs and control the placement and grouping of requisition lines.
Note: Internally sourced requisition lines are supplied by internal sales orders, so they are not
available for autocreation. Internal requisitions will be covered in an advanced topic.
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Chapter 8 - Page 9
Automatic Creation Mode
1. Find requisition lines

2. Select document creation criteria
3. Select requisition lines
4. Choose the Automatic button

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You provide search criteria to locate the requisition lines you want to place on a purchase order
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or RFQ. After reviewing the requisition lines, you select all lines that you want. Then you
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select the Automatic button to create the purchase order or RFQ. You have the option to group
requisition lines with the same item, revision, line type, unit of measure, and transaction reason
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into individual purchase order lines. Similarly, you can group requisition lines with the same
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item, revision, and line type into individual RFQ lines.
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Use automatic creation mode when:
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• A majority of the requisition lines that your search criteria located are items you want to
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place on the document.
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• You want Purchasing to determine where to place the requisition lines on the document.
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• You want Purchasing to combine similar requisition lines.
• You are creating or adding to a release.
• You are using Requisition grouping.

Chapter 8 - Page 10
Find Requisition Lines
Approved Yes
Buyer Stock, Ms. Pat
Enter
Item 1 search
Status
Criteria
and
Item, Rev click
Find
Category
Description
Clear Find

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Use the Find Requisition Lines window to search for requisition lines based on a variety of
different criteria including:
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• Approved
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• Requester
• Requisition
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• Preparer
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• Buyer
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• Supplier
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• Supplier Site
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• Ship-To
Or
• Item
• Description

Chapter 8 - Page 11
You can find unapproved requisition lines by setting Approved to No. However, you will only
be able to create RFQs from unapproved requisition lines.
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Chapter 8 - Page 12
Select Document Creation Criteria
Select Document Creation Criteria
Requisition Line Item Category Description UOM Qty

| 422 |1 | CM22 | PROD9 | MAIN PART | EA | 15 |
2 Select document creation criteria

Action
Document Type
Grouping
Manual Automatic
Selecting Document Creation Criteria

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Choose one of the following document actions:
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• Create - Create a new purchase document
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• Add To - Add to an existing purchase document
Document Type
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Choose from the following document types:
• Standard PO
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• Blanket Release
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• Planned PO
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• RFQ
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Grouping
Choose one of the following grouping options:
• Default - requisition lines for the same item, revision, line type, unit of measure, and
transaction reason are combined into individual purchase order lines.

Chapter 8 - Page 13
• Requisition - the autocreated documents parallel the structure of the requisition from
which they were created. If you select multiple requisition lines from the same
requisition, they will not be grouped (even if the lines are exactly the same) and will
create multiple lines on the resulting purchase document. For example 5 requisition lines
will create 5 lines on the resulting purchase document. When using requisition grouping,
you can select lines from one requisition only and you cannot use manual creation mode.
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Chapter 8 - Page 14
Select Requisition Lines
Select requisition
3 lines
Action: Create
Document Type: Standard PO
Grouping: Default
Manual Automatic

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Requisition lines are ordered by item, item category and then need-by date.
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Chapter 8 - Page 15
Select Automatic Creation Mode
Select Automatic Creation Mode

Click
Action: Create 4 Automatic
Grouping: Default
Manual Automatic
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Chapter 8 - Page 16
Autocreate New Document Window

Document
| 422 | 1 | CM22 | PROD9 | MAIN PART | EA | 15 |
| 437 | 1 | CM22 | PROD9 | MAIN PART | EA | 85 |
Supplier Supplier Site
Currency Source: Default

Action: Create
First Requisition Line
Grouping: Default Specify
Manual Automatic
Create Cancel

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You can accept the default values in this window or make changes if appropriate. After
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selecting the Create button, the PO: Display the AutoCreated Document profile option will
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determine if Purchasing opens the appropriate transaction window (Purchase Orders window
or RFQs window) and displays the created line(s). The supplier and supplier site are not
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required fields in this window. However, if AutoCreate creates the document without a
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supplier and supplier site, they must be added to the purchase document before it can be
approved.
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Chapter 8 - Page 17
Manual Creation Mode
1. Find requisitions
2. Select document creation criteria
3. Click Manual to open the Document Builder
4. Manually combine the requisition lines to build the
document line by line
Manual
creation

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Manual creation mode lets you take control of the actual placement of requisition lines on
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purchase order lines. You move each line into the position you want it on the document by
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using the Document Builder. You can combine like requisition lines onto a single document
line. If you want to combine two requisition lines for the same item, one with a predefined
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item and one with a one-time item (a line with a category and description), use Modify on the
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Tools menu to change the one-time item line to the predefined item.
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Use manual creation mode when:
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• You want to manually choose the requisition lines to combine onto a single document
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line.
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• You want to specify the location of the items on the document (for example, specify
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which purchase order lines the requisition lines will become).
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• You want to ensure you get the negotiated price when combining multiple requisition
lines with different prices.

Chapter 8 - Page 18
Add to Existing Document
• Select the Action type

– Select Add To for additional lines on an existing
document
• Select the requisition lines to add
• Select creation mode
– Automatic to simply add the selected lines
– Manual to add the lines as you wish
• Specify the existing document number to add to

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You can add lines to existing documents only if your security criteria allow you to modify
them.
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Chapter 8 - Page 19
Modify Requisition Lines
• Highlight requisition line to be modified

• Navigate to Modify Lines window
• Split existing requisition lines
– To be autocreated for different suppliers
– To be autocreated as different items

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requisition lines that represent the same or different items. For example, if the requisition line
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quantity is so large that a single supplier cannot fill the entire order by the need-by date, you
can split the requisition line and assign the split lines to different purchase documents written
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to different suppliers. In an additional example, if you have a requisition line item that contains
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parts that you want to order as unique items, you can split the requisition line into several lines.
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Enter as many new lines as you need to represent the original requisition line. For each newly
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created line, Purchasing automatically creates distribution lines and prorates quantities for the
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new distributions based on the original requisition line distributions. When you return to the
AutoCreate Documents window, Purchasing displays the new requisition lines that are now
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available for placement on a purchase order or RFQ if they meet your original search criteria.
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The original requisition line is no longer available for purchase order or RFQ placement, but
your requester can easily review the modification status of a requisition line in the Requisitions
Summary window.

Chapter 8 - Page 20
Return Requisition Lines
• Highlight requisition line to be returned

• Navigate to Return Requisitions window
• Return requisition line to requestor with reason for
return. For example:
– Goods or services no longer available
– Price increase requires requisition reapproval
• Remaining lines on requisition are automatically
returned to requestor

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return a requisition line if you are unable to obtain the requestor’s price and want the requestor
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to resubmit the requisition for approval at a higher price. From the Tools menu, select Return
Requisitions to display the Return Requisitions window. Enter a reason for the return and
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select OK to return all requisition lines on the current requisition except any lines from the
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requisition already placed on a purchase order. When you return requisition lines, they are no
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longer available in the requisition pool.
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Once a requisition submitted in Purchasing has been approved, the requisition must be returned
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for the original submitter to make changes to it. If the requisition was submitted using
iProcurement, the requestor can use the Withdraw feature to make changes and re-submit the
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requisition. The Withdraw feature is not available in Purchasing and can only be used in
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iProcurement if no lines on the requisition are associated with purchase documents.
The Send Notifications for Purchasing Documents program will distribute notifications for
returned requisitions. This program should be scheduled to run periodically.

Chapter 8 - Page 21
Guided Demonstration - Return a Requisition (Required)
Responsibility: System Administrator
(N) Profile > System
Return a requisition to the sender. Find the purchase requisition you created and return it to the
requester; note a reason for returning the requisition.
Prevent Buyer Override in AutoCreate Window
1. Responsibility = System Administrator
2. Navigate to the System Profiles window
3. (N) Profile > System
4. Responsibility = Checked
5. Responsibility = XXPurchasing, Vision Operations
6. Profile = PO: Allow Buyer Override in Autocreate Find
Profile Site Application Responsibility User

PO: Allow Buyer Override in Autocreate Find Yes No
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Return a Requisition
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8. Responsibility = XXPurchasing, Vision Operations
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9.
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Open the Find Requisition Lines window:
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10. (N) AutoCreate
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11. Requisition = Your purchase requisition created using the supplier item catalog
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12. (B) Find to open the AutoCreate Documents window.
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13. Open the Return Requisitions window:
14. (M) Tools > Return Requisition

Chapter 8 - Page 22
15. In the Reason field, enter a reason for returning the requisition.
Note: The return reason can be viewed in the Action History window.
16. (B) OK
Note: This action returns ALL requisition lines associated with this requisition unless they have
been placed on a purchase document.
ReApprove your requisition
17. Open the requisitions window.
18. (N) Requisitions > Requisition Summary
19. Enter your requisition number in the Requisition Number field.
20. (B) Find
21. Note the approval status.
22. (M) View > Action History
23. Close the Action History window
24. (B) Open
25. (B) Approve
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28. (B) OK
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Chapter 8 - Page 23
Guided Demonstration - AutoCreate a Purchase Order (Required)
(N) AutoCreate
Autocreate a Standard Purchase Order
1. Enter the number of your purchase requisition in the Requisition field.
3. Action = Create
4. Document Type = Standard PO
5. Grouping = Default
6. (M) Edit > Select All to select all lines
7. (B) Automatic
9. (B) Create
10. Record the purchase order number.

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12. Save the purchase order but don’t approve it.
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14. (M) File > Place on Navigator &
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Chapter 8 - Page 24
Practice - Return a Requisition
Overview
In this practice, you will use the AutoCreate form to return a requisition.
Assumptions
Tasks
Create an Expense Item
Create an expense item that will be purchased by the M1-Seattle Manufacturing inventory
organization. Set t he item attributes based on the following information.
1. Navigate to the Master Items window

− Item = XXSoftware
− Description = Expensed Item
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− Purchased = Checked
− Purchasable = Checked
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− Default Buyer = Stock, Ms. Pat
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− Use Approved Supplier = Unchecked
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− List Price = 450
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− Expense Account = 01-510-7530-0000-000
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Enable the Item in an Inventory Organization
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Enable the item in the M1-Seattle Manufacturing inventory organization.
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Create an Inventory Item
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Create an inventory item that will be purchased by the M1-Seattle Manufacturing inventory
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organization. Set t he item attributes based on the following information.
− Item = XXMonitor
− Description = Inventory Item

Chapter 8 - Page 25
− Inventory Item = Checked
4. Enable the item in the M1-Seattle Manufacturing inventory organization.
Requisition your Expensed Item
5. Add your expensed item to a requisition.
6. Navigate to the Requisitions window

− Description = XXPurchases
− Quantity = 10
− Need-by = Today’s Date
− Destination Type = Expense
− Organization = Vision Operations
− Location = V1- New York City
− Supplier = Blank
− Site = Blank
Requisition your Inventory Item
7. Add your inventory item to a requisition

− Item field on line 2 = XXMonitor
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− Quantity = 5
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− Destination Type = Inventory
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− Organization = Seattle Manufacturing
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− Location = M1 – Seattle
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− Site = Blank
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Approve the Requisition
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8. Submit your requisition for approval
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Return your Requisition
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Use the AutoCreate form to query your requisition and return it. Supply a return reason.
ReApprove your Requisition

Chapter 8 - Page 26
10. Find your requisition using the Requisition Summary window
11. View the Return Reason in the Action History window
12. Resubmit your requisition for approval.
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Chapter 8 - Page 27
Solution - Return a Requisition
1. Choose the organization
2. (N) Change Organization
3. From the list of values, choose M1-Seattle Manufacturing and click OK
4. Open the Master Item window:
• (N) Items > Master Items

5. (T) Purchasing
− Expense Account = 01-510-7530-0000-000
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6. Save
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Chapter 8 - Page 28
7. (M) Tools > Organization Assignment
8. Assign the item to the following inventory organizations:

− M1 - Seattle Manufacturing
9. Save
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Chapter 8 - Page 29
10. Open the Master Item window:
• (N) Items > Master Items

11. (T) Purchasing

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12. (T) Inventory
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13. Save
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Chapter 8 - Page 30

− M1 - Seattle Manufacturing
16. Save
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17. Close the Organization Assignment and the Master Item windows
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Chapter 8 - Page 31
Requisition your Expensed Item
18. Open the Requisitions window:
• (N) Requisitions > Requisitions

− Description = XXPurchases
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19. (T) Items
− Quantity = 10
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− Organization = Vision Operations
− Location = V1- New York City
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− Site = Blank
20. Save
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Requisition your Inventory Item
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21. (T) Items
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22. (M) File > New
− Item field on line 2 = XXMonitor
− Quantity = 5

Chapter 8 - Page 32
− Destination Type = Inventory
− Organization = Seattle Manufacturing
− Location = M1 – Seattle
23. Save
24. Record your requisition number
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Approve the Requisition
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26. OK
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27. Close the Requisitions window.
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Return your Requisition
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28. Open the Find Requisition Lines window:
Or

Chapter 8 - Page 33
29. (N) AutoCreate
30. (B) Clear to clear existing query criteria.

− Requisition = Your purchase requisition
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32. Open the Return Requisitions window

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Chapter 8 - Page 34
33. (M) Tools > Return Requisition.
34. In the Reason field, enter a reason for returning the requisition.
Note: The return reason can be viewed in the Action History window.
35. (B) OK
Note: This action returns ALL requisition lines associated with this requisition unless they
have been placed on a purchase document.
ReApprove your Requisition

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• (N) Requisitions > Requisition Summary
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37. Enter your requisition number in the Requisition Number field
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38. (B) Find
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39. Note the approval status.
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40. (M) View > Action History
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Chapter 8 - Page 35
41. Close the Action History window
42. (B) Open
43. (B) Approve

− Submit for Approval = Checked
44. (B) OK
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Chapter 8 - Page 36
Practice - AutoCreate a Purchase Order
Overview
In this practice, you will use the AutoCreate form to return a requisition.
Assumptions
Tasks
1. Use the AutoCreate window to find the requisition you returned in the last practice. Use
automatic creation mode to create a standard purchase order.
− Site = SANTA CLARA
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Chapter 8 - Page 37
Solution - AutoCreate a Purchase Order
1. Open the AutoCreate Documents window:
• (N) AutoCreate
2. (B) Clear
3. Enter the number of your purchase requisition in the Requisition field.
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− Action = Create
− Document Type = Standard PO
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− Grouping = Default
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5. (M) Edit > Select All to select all lines
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6.
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(B) Automatic to create a standard purchase order.
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Chapter 8 - Page 38
7. (B) Create
8. Record the purchase order number.

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Chapter 8 - Page 39
10. Save
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Chapter 8 - Page 40
Summary
Summary
You should now be able to do the following:

• Use the AutoCreate window to automate the
creation of purchase documents
• Use the Create Releases program to generate
blanket purchase agreement releases
• Understand how the PO Create Documents
workflow can automatically create purchase
documents without buyer intervention
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Chapter 8 - Page 41
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Receiving
Chapter 9
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Receiving
Chapter 9 - Page 1
Receiving
Receiving
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Receiving
Chapter 9 - Page 2

Requisitions
Catalog
Content
Management Purchase
Orders
Ordering
RFQs/
Sourcing Receiving
Quotations
Invoice/
Analysis
Payment
Supplier
Supplier
Performance
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Receiving
Chapter 9 - Page 3
Objectives
Objectives
After completing this module, you should be able to do

the following:
• Describe the process of receiving goods
• Understand receipt routing
• Understand receipt processing methods
• Create Standard, Express, and Cascade receipts
• Understand Substitute receipts, Unordered
Receipts, Returns and Corrections
• Understand Pay on Receipt
considerations
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Receiving
Chapter 9 - Page 4
Agenda
Agenda
• Understand the Receiving process

Receipts, Returns and Corrections and Pay on
Receipt
• Understanding additional implementation
considerations
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Receiving
Chapter 9 - Page 5
Receiving
Receiving
Supplier
Transfer Inventory
Shipment
Receive Deliver Shop floor
Order Entry
Internal
Inventory shipment Inspect Expense
Receiving
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Receiving is a transaction that signals that the goods ordered on a purchase order have arrived.
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Purchasing lets you control the items you order through receiving, inspections, transfer and
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delivery. You can:
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• Define receiving tolerances and rules at the organization supplier, item and order level,
with the lowest level overriding previous levels.
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• Use Express Receipt to receive an entire purchase order with a few keystrokes.
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• Use the Cascade function to distribute a given quantity of an item from a single supplier
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across multiple shipments and distributions.
• Record receipt of unordered items, research receipt and match the delivery to an existing
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purchase order.
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• Record delivery of items from receiving or inspection locations to their final destination
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and also record transfers of items to different locations for inspection.
• Define which of your items require inspection. You can accept or reject items and
provide detailed information about your inspection results.
• Record returns to suppliers and customers.
Receiving
Chapter 9 - Page 6
• Correct receiving transaction errors.
• Review transaction history.
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Receiving
Chapter 9 - Page 7
Overview of Receiving Locations

Ship-to location
Receiving locations Destination
Receiving dock A Cold storage A Factory 1 receives
receives 20 items 20 items 10 items
Cold Sub A
Inspection
station 1
20 items Locator 1
10 items
Paul
requester
10 items

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You record inspections, deliveries and material movements within receiving and inspection by
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entering receiving transactions. The transactions provide a history that allows you to track an
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item from its source to its destination.
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Receiving Transactions allow you to:
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• Transfer goods from one location to another
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• Document inspection results
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• Deliver goods to their required destination
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It is the destination type that tells the system if the material is in the receiving space or its final
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destination.
Receiving
Chapter 9 - Page 8
Agenda
Agenda

Receipt
considerations
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Receiving
Chapter 9 - Page 9
Overview of Receipt Routing
Direct Receipt Inspection

• One Step • Three Steps
• “Dock to Stock” • Goods are received and
then sent to Inspection.
• Goods are accepted or
Standard Receipt
rejected.
• Two Steps • Third step either returns or
• Goods are received and delivered.
then delivered in two
transactions.

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Direct Receipt
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One step. Goods are received and delivered in one step.
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Standard Receipt
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Two steps. Goods are received in one step and then delivered in a second. This allows for the
time it takes goods to move though your facility from the receiving dock. Quantity on hand in
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subinventories is not updated until the delivery is completed. The quantity and cost is
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maintained in the inventory organizations inventory receiving account until the delivery is
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made.
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Inspection Required
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Three steps. Used for goods that require a more skilled person to do a careful review. Goods
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are received in one step. Inspection either accepts or rejects the goods. A quality score can be
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assigned at that time. Goods that are accepted are delivered in the third step, while goods that
are rejected are returned to the supplier.
Receiving
Chapter 9 - Page 10
Direct Delivery
Direct Delivery
1 Receive and
Deliver
Inventory Shop floor Expense
Direct Delivery
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Direct delivery allows receipt of items directly to their final delivery destination. This is
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sometimes called a “dock to stock” transaction. The final destination type may be Expense,
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Inventory, or Shop Floor.
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Receiving
Chapter 9 - Page 11
Standard Receipt
Standard Receipt
1 Receive
Optional
2 Deliver
Standard Receipt
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Shipments are received into a receiving location and then delivered to an interim or final
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destination. Goods are usually received and delivered in separate transactions. However, if the
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RCV: Allow Routing Override profile option is set to Yes, users can override the default and
immediately deliver to the final destination. Setting the RCV: Allow Routing Override profile
to No forces a two step delivery process.
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Receiving
Chapter 9 - Page 12
Inspection Required
Inspection Required
1 Receive
Req’d 2 Inspect
3 Deliver
Inspection Required
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Inspection is a procedure you perform to ensure that items received confirm to your quality
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standards. Goods must be received and inspected before they can be delivered to their final
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destination. The QA: PO Inspection Profile option can be set to either Purchasing or Quality.
If the profile option is set to Purchasing, a simple inspection window opens for recording
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inspection results. If the profile option is set to Quality and a quality inspection plan exists, the
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Quality form is opened and inspection results may be recorded based on a predefined
inspection plan.
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Receiving
Chapter 9 - Page 13
Agenda
Agenda

Receipt
considerations
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Receiving
Chapter 9 - Page 14
Receipt Processing Methods
• Standard receipt
• Express receipt
• Cascade receipt
• ASNs or ASBNs - iSupplier Portal
• ASNs or ASBNs - e-Commerce Gateway
• Receiving in iProcurement
• Receiving open interface
• Receiving notification

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Standard receipt
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One line at a time.
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Express receipt
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Multiple lines at a time. For example, an entire purchase order for a supplier. During express
receiving you can always deselect items and change quantities prior to completing the process.
Cascade receipt
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One receipt of multiple shipments of the same item. For example, same supplier and same
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item represented on multiple purchase documents.
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ASNs or ASBNs - iSupplier Portal
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You can give your supplier carefully limited access to allow them to enter ASNs or ASBNs.
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ASNs or ASBNs - e-Commerce Gateway
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Load ASNs or ASBNs using the e-Commerce Gateway.
Receiving in iProcurement
Receiving
Chapter 9 - Page 15
You can give your employees limited ability to receive some types of items through a web
browser.
Receiving Open Interface
Use barcoding software to scan receipts and create a text file that can be loaded into the
Receiving Open Interface and processed by running the Receiving Transaction Processor.
Receiving Notification
The PO Confirm Receipts workflow can be scheduled to send notifications to requesters asking
them to confirm receipts against expected receipts.
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Receiving
Chapter 9 - Page 16
Standard Receipt
Standard Receipt
• Find expected receipts

• Enter quantities for received items
Qty Item
10 CM13139
5 CM12458
5 DC21322
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Receiving
Chapter 9 - Page 17
Express Receipt
Express Receipt

• (B) Express fully receives all expected shipments
• Enter Final Destination (Inventory, Expense or
Shop Floor
Qty Item
10 CM13139
5 CM12458
5 DC21322
Express Receipt
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The express function is a quick method of entering receipts and receiving transactions. This
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function is available if you have specified or inferred a source document. With a few
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keystrokes you can receive the entire open order quantity of a purchase order. When you
search for expected receipts, either specify a single supplier or use search criteria that will
derive a single supplier.
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Receiving
Chapter 9 - Page 18
Cascade Receipt
Cascade Receipt

• (B) Cascade fully receives all expected shipments
• Enter quantity to cascade
Cascade qty = 12
Qty expected Qty Item
10 10 CM13139
5 2 CM13139
5 0 CM13139
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The cascade function facilitates the distribution of a given quantity of an item from a single
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supplier across multiple shipments and distributions. This function is available if you have
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expected receipts.
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specified or inferred a source (a specific supplier or customer) and an item when you search for
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Receiving
Chapter 9 - Page 19
ASNs and ASBNs
ASNs and ASBNs

1 Enter
3 Confirm
iSupplier
Portal
Open
interface
Receiving Confirm
Transaction Receipts
Processor
e-Commerce
Gateway
2 Process
ASNs and ASBNs

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Enter (1)
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Enter ASNs and ASBNs using either iSupplier Portal or e-Commerce Gateway.
Process (2)
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Run the Receiving Transaction Manager to validate data in the Receiving Open Interface
Confirm (3)
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Use the Enter Receipts window to confirm the actual receipt of goods when it arrives.
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Receiving
Chapter 9 - Page 20
1 Receive
2 Confirm
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Receive (1)
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You receive the actual goods.
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Confirm (2)
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You can confirm physical receipt of goods using iProcurement as well as the Enter Receipts
form in Purchasing, provided you are using a receipt routing of Direct Delivery. You will not
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find expected receipts if the receipt routing is set to Standard Receipt or Inspection Required.
ern
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You can schedule the Confirm Receipts Workflow Select Orders process to run at regular
intervals. The Confirm Receipts Workflow Select Orders process runs the PO Confirm
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Receipts workflow. The Confirm Receipts workflow sends notifications through the Web, e-
c
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mail, or Notifications Summary window to requesters or buyers who create requisitions
r
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through Purchasing or iProcurement. It lets people know they should have received an item.
The Confirm Receipts workflow sends notifications for items with a Destination or Deliver-To
Type of Expense, a Receipt Routing of of Direct Delivery, and a Need-By date that is equal to
or later than today’s date.
Receiving
Chapter 9 - Page 21
1 Load 3 Confirm
Open
interface
Receiving Confirm
Flat File Transaction Receipts
Processor
2 Process

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Load (1)
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Load the Receiving Open Interface with data using SQL*Loader or another utility. You can
receiving process.
AI
use barcoding software to create the text file as items are scanned to help automate the
Process (2)
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Run the Receiving Transaction Manager to validate data in the Receiving Open Interface
tables.
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Confirm (3)
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Use the Enter Receipts window to confirm the actual receipt of goods when it arrives.
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Receiving
Chapter 9 - Page 22
Finding Expected Receipts
1 Choose the organization
2 Find expected receipts
3 Input receipt header
4 Chose processing method
5 Input receipt details
6 Save

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(N) Receiving > Receipts
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Choose the organization (1)
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When you first access the Receipts window, you will be forced to choose an inventory
organization from the list of values if you can process receipts for more than one. You can
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change the organization manually if you have access to the Change Organization window.
rn
Although it is not always the case, you can think of an inventory organization as a warehouse.
e
Int
When you write purchase orders, for example, you specify goods to be shipped to specific
inventory organizations. You will only be able to view expected receipts (scheduled shipments
le
for a purchase order line item) for the inventory organization you choose. Use the
c
Organization Access form to limit access to the list of inventory organizations for a specific
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responsibility.
O
Find expected receipts (2)
Expected Receipts can and do come from different sources because they are based on source
documents like purchase order scheduled shipments to suppliers, Internal Sales Orders
resulting from Internal requisitions and customer returns (processed in Order Management).
Receiving
Chapter 9 - Page 23
When no source document can be found, the order can be processed as an Unordered receipt
provided the Allow Unordered Receipts Receiving option is enabled on the scheduled
shipment.
Use the Find Expected Receipts window to find source documents. You can enter as many
criteria as desired to search for expected receipts. The more information you include, the more
restrictive the search is. The focus of this course is those receipts that are expected for a
supplier as a result of a purchase order or release that was issued. Other sources of goods to be
received are from either internal inventory organizations, or from customers.
Input receipt header (3)
Input receipt header details like freight carrier, comments and packing slip.
Choose processing mode (4)
Choose the most efficient method to process the invoice. Choose to process the receipt as a
standard, express or cascade receipt.
Input receipt details (5)
Input receipt details like quantity, unit of measure, location and subinventory (if necessary).
The method of receipt routing determines if the destination defaults to Receiving or a final
destination like Inventory, Expense or Shop Floor. You can override this option (for example,
when using Standard Delivery, the destination will default to Receiving but you override it to a
final destination) only if the RCV: Allow Routing Override profile option is set to Yes. Also
the Enforce Ship-To Receiving option determines whether the receiving location must be the
same as the Ship-To location. The Enforce Ship-To option can be set to allow the receipt,
allow the receipt but warn the receipt processor or not allow the receipt to be processed.
Save (6)
Save the receipt. Depending on the setting of the RCV: Processing Mode profile option, the
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receipt will be processed immediately or submitted as a batch or deferred process.
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Receiving
Chapter 9 - Page 24
Receipt Header
Receipt Header
• Receipt Number
• Receiver Name Receipt
• Date
• Freight Carrier HEADER
• Packing Slip/Air Bill
• Number or Containers
LINE
• Comments
Receipt Header
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Receipt Number
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Enter a unique receipt number. If automatic receipt number generation is active, the system
AI
will assign the next available receipt number. Numbering options are set one time for each
inventory organization. You can also add receiving transactions existing receipts.
Receiver Name
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The receiver name will default in from the user id. You can override the default with the name
rn
of another receiver.
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Date
Int
Today’s date will default in from the system date. You can backdate a receipt if necessary, but
le
the accounting period that the receipt date fall into must be open to do so.
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Freight Carrier
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You may enter the carrier who delivered the goods using the list of values. This information
will default if an ASN was sent.
Packing Slip / Air Bill Number
Receiving
Chapter 9 - Page 25
You may enter the packing slip or air bill number that the goods came in on. This information
will default if an ASN was sent.
Number of Containers
You may enter the total number of containers that made up this shipment.
Comments
The receiver may enter any comments here. An example might be that the box was wet, etc.
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Receiving
Chapter 9 - Page 26
Receipt Line
Receipt Line
• Quantity
• Unit of Measure Receipt
• Item
• Description HEADER
• Destination Type
• Order Number
LINE
• Receipt Type
• Requestor
• Subinventory
• Note to Receiver
Receipt Line
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Quantity
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Enter the quantity actually received. If you have allowed blind receiving in the inventory
organization’s receiving options, this field will be empty.
AI
Unit of Measure
The unit of measure for the receipt will default here.
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Item
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The system item number (if one exists) will display here.
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Description
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The description for the item will display here.
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Destination Type
Or
The final destination of the receipt (Expense, Inventory or Shop Floor) or Receiving is
displayed. For a direct receipt the destination will be either: inventory, expense or outside
processing. A standard or inspection receipt will have a destination type of receiving.
Order Number
Receiving
Chapter 9 - Page 27
The order number will default (purchase order number or sales order number).
Receipt Type
The receipt type for this order will default here. Either direct, standard or inspection.
Requestor
If the destination type is expense or inventory, and the order was created from a purchase
requisition, the name of the requestor will default.
Subinventory
If the destination type is inventory this field is required. If the sub inventory was specified on
the requisition or purchase order, it will default here. If no value defaults, the receiver will
have to fill in which subinventory the goods are to be delivered to.
Note to Receiver
If a note to the receiver was entered either on the requisition or the purchase order, it will
display here.
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Receiving
Chapter 9 - Page 28
Guided Demonstration - Create a Standard Purchase Order
(Required)
Create a purchase order that will be used for receiving.
2. Type = Standard Purchase Order
3. Ship-to = M1-Seattle
4. Bill-to = V1-New York
5. Description = XXComputer Equipment
7. (B) Terms
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8. Payment = Immediate
9. Pay On = Blank
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10. Save
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11. Close the Terms and Conditions window
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12. (T) Items
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Num Item Quantity Price Promised
1
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XXSoftware 10 450 Blank
2
3
O XXMonitor
XXComputerPC
10
2
250
1200
Blank
Today + 7 days
Receiving
Chapter 9 - Page 29
Note: Need-by and Promised-by are only required for planned items. However, they are
necessary for some of the supplier performance reports.
14. Save
Enter Shipments
15. Place cursor in the Description field for the XXSoftware item
16. (B) Shipments
17. Enter the following shipments for the XXSoftware item.

18. Save
19. (T) More
20. Match Approval Level = 2-way
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21. Invoice Match Option = PO
22. Save
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24. Place cursor in the Description field for the XXMonitor item.
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25. Navigate to the Shipments window:
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26. (B) Shipments
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Num
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Org Ship-To UOM Quantity Promised
1 O M1 M1-Seattle Each 4 In 1 month
Receiving
Chapter 9 - Page 30
28. Save
29. (T) More
30. Match Approval Level = 3-way
31. Invoice Match Option = PO
32. Save
35. Click in the Description field for the XXSoftware item.
36. (B) Shipments
Num Type Requestor Quantity Charge
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1 Expense Smith, Mr. Jonathon 4 01-520-7530-0000-000
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39. Save
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41. Repeat the steps above until ALL shipments have a completed internal distribution.
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42. Save
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44. (B) Shipments
Receiving
Chapter 9 - Page 31
changed. Account generator builds it based on the accounting in the inventory organization! If
the account combinations are not being built the way you need them to be, you can modify the
workflows to build them the way you need them to be built.
47. Save
50. Save
Complete the Internal Distributions for the Asset
52. Place cursor in the Description field for the XXComputerPC item.
53. (B) Shipments

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Num Type Requestor
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Quantity Charge
1 Expense Smith, Mr. Jonathon 4
AI 01-000-1570-0000-000
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Receiving
Chapter 9 - Page 32
63. Verify that each distribution for XXMonitor has requestor and subinventory information
recorded
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Chapter 9 - Page 33
Guided Demonstration - Create a Standard Receipt (Required)
(N) Receiving > Receipts (M1 - Seattle Manufacturing)
Find Expected Receipts
1. Purchase Order = Your Purchase Order from #1.
3. Item = XXComputerPC
4. (B) Find
Fill in Receipt Header Details
5. Packing Slip = PS-XX
6. Freight Carrier = UPS
Note: The Receipt Header window opens on top of the Receipts window. When you have
completed the Receipt Header window, click in the Receipt window, which is located behind the
Receipt Header window to navigate to it.
Process a Standard Receipt
7. (M) Window > Receipts (M1)

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8. Select the checkbox to the left of the Quantity field
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9. Quantity = 2
10. Destination Type = Expense

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11. Location = M1-Seattle &
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12. Requestor = Smith, Mr. Jonathan
13. Save
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14. (B) Header
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15. Record your receipt number.
Receiving
Chapter 9 - Page 34
Note: You can use iSupplier Portal to allow your suppliers to record ASNs. Deliveries must still
be processed using this window, but much of the information will already be recorded and as a
result, receipt processing cost and time may be lower.
Note: You can only override the default destination type if the RCV: Allow Routing Override is
set to Yes. Also, the Enforce Ship-To option will determine if you can override the Ship-To
location on the expected receipt. You can set this Action for this option to Warning, Reject or
None. Set the RCV: Print Receipt Traveler to Yes in order to have a Receipt Traveller printed
automatically. The RCV: Processing Mode profile option determines how receipts are
processed:
Setting Meaning
Online The user will not be able to perform any other application activities until the
process completes.
Immediate The window will start running Receiving Transaction Processor as a
background process. The system will not hold the screen and the user can do
something else..
Batch Control is returned to the User immediately so other application activities
may be performed. Running Concurrent Program Receiving Transaction
Processor (RVCTP) will process the transaction. Typically, you will run this
program periodically based on processing and system requirements.
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Receiving
Chapter 9 - Page 35
Guided Demonstration - Create an Express Receipt (Required)
3. Item = XXSoftware
4. (B) Find
Note: In order to process an express receipt, all expected receipts queried must be from the same
supplier!
Record Receipt Header Details
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Create the Express Receipt

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8. (B) Express
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9. Destination Type = Final Destination
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10. (B) OK
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11. Save
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12. (B) Header
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Note: If the Destination Type is Final Destination, to process the receipt as an express receipt,
the requestor field must have been filled out on the purchase order or release!
Receiving
Chapter 9 - Page 36
Review Receiving Transactions
14. Open the Find Receiving Transactions window:
15. (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)
16. In the Receipt field, enter the receipt number.
17. (B) Find
18. (B) Transactions to open the Receipt Transaction Summary window.
19. Review your receipt.
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Receiving
Chapter 9 - Page 37
Guided Demonstration - Create a Cascade Receipt (Required)
3. Item = XXMonitor
4. (B) Find
Note: In order to process a cascade receipt, you must query expected receipts for a specific
supplier and item.
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Create the Cascade Receipt

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8. (B) Cascade to create a Cascade receipt.
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9. Cascade Quantity = 6
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10. Unit of Measure = Each
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11. (B) OK
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12. Note that the 6 items are applied to the expected receipt.
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13. Save
14. (B) Header
Receiving
Chapter 9 - Page 38
Note: Because the routing type was Standard Routing, these inventory items will show a
destination type of Receiving. The items are delivered to inventory in a subsequent step.
Complete the Delivery for a Line of the Cascade Receipt (we will inspect the other
later)
16. Open the Receiving Transactions window:
17. (N) Receiving > Receiving Transactions (M1 - Seattle Manufacturing)
18. In the Receipt field, enter the number of the Cascade Receipt.
19. (B) Find
20. (T) Order Information
21. Select PO Line 2, Shipment 2 (quantity of 2 available to deliver) by selecting the checkbox
to the left of the Quantity field. We will inspect the other item in a later lab.
Note: If you did not fill in requestor and subinventory information on the purchase order, you
will need to do that now!
22. Save
23. Close the Receiving Transactions window.
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27. (B) Find

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Receiving
Chapter 9 - Page 39
Practice - Create Items
Overview
In this practice you will create items that you will write a purchase order for and finally receive
in subsequent practices.
Assumptions
Tasks
1. Log on to the system using the following information.

2. Create an item that will be expensed. Use the following information:
3. Open the Master Item window

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− Primary Unit of Measure = Each
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− Item Status field = Active
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− Buyer = Stock, Ms. Pat
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− Expense Account = 01-510-7530-0000-000
4.
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In the Receipt Date Control area’s Action field, use the list of values to select Warning.
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− Days Early = 5
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− Days Late = 5
O− Allow Substitute Receipts = Yes

− Receipt Routing = Standard
− Enforce Ship-To = Warning
Receiving
Chapter 9 - Page 40
Assign the item to the following inventory organizations:
Org Name Assigned

M1 Seattle Manufacturing Checked
M2 Boston Manufacturing Checked
M3 Dallas Manufacturing Checked

− Item Status = Active
5. In the Receipt Date Controls area’s Action field, use the list of values to select Warning.
− Days Early = 5
− Days Late = 5
− Allow Substitute Receipts = Yes
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− Receipt Routing field = Standard
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Org
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M1
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Seattle Manufacturing Checked
M2
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Boston Manufacturing Checked
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Create an Item that will be Capitalized and Depreciated after Purchase
− Item = XXComputerPC
Receiving
Chapter 9 - Page 41
− Description = High Speed Computer
− Asset Category = COMPUTER-PC
In the Receipt Date Control area’s Action field, use the list of values to select Warning.
− Days Early and Days Late = 5
− Receipt Routing = Inspection
Org Name Assigned

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Receiving
Chapter 9 - Page 42
Solution - Create Items
1. Choose the organization:
2. (N) Change Organization
3. From the list of values, choose M1-Seattle Manufacturing and click OK
4. (N) Items > Master Items

5. (T) Purchasing
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− Expense Account = 01-510-7530-0000-000
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Chapter 9 - Page 43
7. (T) Receiving
8. In the Receipt Date Control area’s Action field, use the list of values to select Warning.
− Days Early = 5
− Days Late = 5
− Receipt Routing = Standard
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− Enforce Ship-To = Warning
9. Save
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Receiving
Chapter 9 - Page 44
Org Name Assigned

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12. Save
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13. Close the Organization Assignment and Master Item windows.
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Receiving
Chapter 9 - Page 45
15. (T) Main
− Item Status = Active
16. (T) Inventory

17. Save
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18. (T) Purchasing
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19. Save
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Receiving
Chapter 9 - Page 46
20. (T) Receiving
21. In the Receipt Date Controls area’s Action field, use the list of values to select Warning.
− Days Early = 5
− Days Late = 5
− Receipt Routing field = Standard
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22. Save
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Receiving
Chapter 9 - Page 47
Org Name Assigned

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24. Save
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25. Close the Organization Assignment and the Master Item windows.
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Create an Item that will be Capitalized and Depreciated after Purchase
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− Description = High Speed Computer
Receiving
Chapter 9 - Page 48
27. (T) Purchasing

− Asset Category = COMPUTER-PC
28. Save
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29. (T) Receiving
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30. In the Receipt Date Control area’s Action field, use the list of values to select Warning.
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− Days Early and Days Late = 5
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− Receipt Routing = Inspection
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31. Save
Or
Enable the item in the following inventory organizations:
Receiving
Chapter 9 - Page 49
Org Name Assigned
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Receiving
Chapter 9 - Page 50
Practice - Create a Standard Purchase Order
Overview
In this practice you will use the items you set up to create a standard purchase order.
Assumptions
Tasks

2. Open the Purchase Orders window

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− Description = XXComputer Hardware
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− Payment = Immediate
− Pay On = Blank
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Enter Items
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3.
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Enter the items according to the following table:
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Num
cle Item Quantity Price Promised
1
ra
XXSoftware 10 450 Blank
2
3
O XXMonitor
XXComputerPC
10
2
250 Blank
1200 Today + 7 days
Receiving
Chapter 9 - Page 51
Enter Shipments

− Match Approval Level = 2-way

− Invoice Match Option = PO



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7.
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Complete the internal distribution according to the following table:
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Num Type
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Requestor Quantity Charge
1 Expense
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Smith, Mr. Jonathon
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4 01-520-7530-0000-000
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8.
a
Repeat the steps above until ALL shipments have a completed internal distribution.
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Receiving
Chapter 9 - Page 52
If the accounts are not being built the way you need them to be, you can modify the account
generator to build them the way you need them to be built.
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Receiving
Chapter 9 - Page 53
Solution - Create a Standard Purchase Order

2. Open the Purchase Orders window:

− Bill-to = V1-New York
− Description = XXComputer Hardware
• (B) Terms
− Payment = Immediate
− Pay On = Blank
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4. Save
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5.
I
Close the Terms and Conditions window to return to the Purchase Orders window.
A
Enter Items
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6. (T) Items
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In
Num
cle Item Quantity Price Promised
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1 XXSoftware 10 450 Blank
2 XXMonitor 10 250 Blank
3 XXComputerPC 2 1200 Today + 7 days
Receiving
Chapter 9 - Page 54
Note: Need-by and Promised-by are only required for planned items. However, they are
necessary for some of the supplier performance reports.
8. Save
Enter Shipments
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9. Place cursor in the Description field for the XXSoftware item
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• (B) Shipments
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2
3 Or M1
M1
M1-Seattle
M1-Seattle
Each
Each
4
2
In 2 months
In 3 months
Receiving
Chapter 9 - Page 55
12. Save
13. (T) More

14. Save
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Chapter 9 - Page 56
• (B) Shipments

19. Save
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20. (T) More
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21. Save
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Receiving
Chapter 9 - Page 57
24. Click in the Description field for the XXSoftware item.
25. (B) Shipments

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27. Complete the internal distribution according to the following table:O
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Num Type Requestor
AIQuantity Charge
1 Expense Smith, Mr. Jonathon
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4O 01-520-7530-0000-000
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28. Save
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31. Save
Receiving
Chapter 9 - Page 58
33. (B) Shipments

If the accounts are not being built the way you need them to be, you can modify the account
generator to build them the way you need them to be built.
36. Save
39. Save

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42. (B) Approve
− Submit for Approval = Checked
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46. Verify that each distribution for XXMonitor has requestor and subinventory information
recorded
Receiving
Chapter 9 - Page 59
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Receiving
Chapter 9 - Page 60
Practice - Create a Standard Receipt
Overview
In this practice you will create a standard receipt against the purchase order you created in the
prior practice.
Assumptions
Tasks
Log on to the system using the following information.

Open the Find Expected Receipts window:

− Purchase Order = Your Purchase Order from Lab #1.
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− Packing Slip = PS-XX
− Freight Carrier = UPS
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completed the Receipt Header window, click in the Receipt window, which is located
behind the Receipt Header window to navigate to it.
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− Quantity = 2
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− Location = M1-Seattle
− Requestor = Smith, Mr. Jonathan
Receiving
Chapter 9 - Page 61
Note: You can use iSupplier Portal to allow your suppliers to record ASNs. Deliveries
must still be processed using this window, but much of the information will already be
recorded and as a result, receipt processing cost and time will be lower.
Note: You can only override the default destination type if the RCV: Allow Routing
Override is set to Yes.
Note: The RCV: Processing Mode profile option determines how receipts are processed:
Setting Meaning
Online The user will not be able to perform any other application activities until the
process completes.
Immediate The window will start running Receiving Transaction Processor as a
something else..
Batch Control is returned to the User immediately so other application activities
may be performed. The transaction will be processed by running Concurrent
Program Receiving Transaction Processor (RVCTP). Typically, customers
will run this program periodically based on their processing and system
requirements.
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Chapter 9 - Page 62
Solution - Create a Standard Receipt

2. Open the Find Expected Receipts window:
• (N) Receiving > Receipts (M1 - Seattle Manufacturing)

3. (B) Find


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5. Select the checkbox to the left of the Quantity field
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− Quantity = 2
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− Location = M1-Seattle
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− Requestor = Smith, Mr. Jonathan
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6. Save
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Receiving
Chapter 9 - Page 63
7. (B) Header
Note: You can only override the default destination type if the RCV: Allow Routing
Override is set to Yes.
Note: You can use iSupplier Portal to allow your suppliers to record ASNs. Deliveries
must still be processed using this window, but much of the information will already be
recorded and as a result, receipt processing cost and time will be lower.
Note: The RCV: Processing Mode profile option determines how receipts are processed:
Setting Meaning
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Online
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The user will not be able to perform any other application activities until the
process completes.
Us
Immediate
I
The window will start running Receiving Transaction Processor as a
A
something else..
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Batch
l
Control is returned to the User immediately so other application activities
a
n
may be performed. The transaction will be processed by running Concurrent
er
Program Receiving Transaction Processor (RVCTP). Typically, customers
t
will run this program periodically based on their processing and system
Inrequirements.
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Chapter 9 - Page 64
Practice - Create an Express Receipt
Overview
In this practice you will create an express receipt against the purchase order you created
Assumptions
Tasks


− Purchase Order = Your Purchase Order from Lab #1
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Note: In order to process an express receipt, all expected receipts queried must be from the
same supplier!
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− Destination Type = Final Destination
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Chapter 9 - Page 65
Note: If the Destination Type is Final Destination, to process the receipt as an express
receipt, the requestor field must have been filled out on the purchase order or release!
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Chapter 9 - Page 66
Solution - Create an Express Receipt

2. (N) Receiving > Receipts (M1 - Seattle Manufacturing)

− Purchase Order = Your Purchase Order from Lab #1
3. (B) Find
Note: In order to process an express receipt, all expected receipts queried must be from the
same supplier!

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− Destination Type = Final Destination
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(B) OK
Receiving
Chapter 9 - Page 67
7. Save
8. (B) Header
Note: If the Destination Type is Final Destination, to process the receipt as an express
receipt, the requestor field must have been filled out on the purchase order or release!
13. (B) Find
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Chapter 9 - Page 68
Practice - Create a Cascade Receipt
Overview
In this practice you will create an cascade receipt against the purchase order you created.
Assumptions
Tasks


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supplier and item.
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− Cascade Quantity = 6
− Unit of Measure = Each
Receiving
Chapter 9 - Page 69
Complete the Delivery for the a Line of the Cascade Receipt (we will inspect the
other later)
5. Select PO Line 2, Shipment 2 (qty of 2 available to deliver) by selecting the checkbox to the
left of the Quantity field. We will inspect the other item in a later lab.
Note: If you did not fill in requestor and subinventory information on the purchase order,
you will need to do that now!
6. Open the Find Receiving Transactions window.
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Chapter 9 - Page 70
Solution - Create a Cascade Receipt

• (N) Receiving > Receipts (M1 - Seattle Manufacturing)

3. (B) Find
supplier and item.

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5.
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(B) Cascade to create a Cascade receipt. &
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− Cascade Quantity = 6
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− Unit of Measure = Each
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6. (B) OK
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Chapter 9 - Page 71
7. Note that the 6 items are applied to the expected receipt.
8. Save
9. (B) Header
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Complete the Delivery for the a Line of the Cascade Receipt (we will inspect the
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other later)
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(N) Receiving > Receiving Transactions (M1 - Seattle Manufacturing)
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Or
13. (B) Find
Receiving
Chapter 9 - Page 72
15. Select PO Line 2, Shipment 2 (qty of 2 available to deliver) by selecting the checkbox to the
left of the Quantity field. We will inspect the other item in a later lab.
Note: If you did not fill in requestor and subinventory information on the purchase order,
you will need to do that now!
16. Save
• (N) Receiving > Receiving Transactions Summary (M1-Seattle Manufacturing)
20. (B) Find
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Chapter 9 - Page 73
Control the Receiving Transaction Processor
Control the Receiving Transaction

Processor
• Online
• Immediate
• Batch
Control the Receiving Transaction Processor

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The setting of the RCV: Processing Mode profile determines the processing mode used after
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you save your work for receiving transactions. The profile option can have one of three
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possible settings:
Online
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The Receiving Transaction Processor is called directly to process the receipt (no concurrent
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request is submitted). The form is not immediately returned to user control, so the user will
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not be able to perform any other application activities until the process completes. Form
response time is the slowest of the three options, but errors processing the receipt become
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obvious immediately.
Immediate
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The transaction goes to the interface table, and the Receiving Transaction Processor is called
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for the group of transactions that you entered since you last saved your work. The form will
start running the Receiving Transaction Processor as a background process. Control is
returned to the user immediately so other application activities may be performed. Form
response time is fast, but a concurrent process is run each time you process a receipt. You
must occasionally check the concurrent manager to ensure the concurrent request completes
Receiving
Chapter 9 - Page 74
without errors. If an error occurs, the problem must be fixed. You use the Transaction Status
Summary form to delete errored transactions and force them to reprocess. This is important
especially for transactions destined for Inventory or Shop Floor. Until the receipt processes
successfully, no receipt accruals are generated and sent to the general ledger. If the problem is
not reconciled by period end, accruals will be out of balance and understated in General
Ledger.
Batch
The transaction goes to the interface table, where it will be picked up the next time the
Receiving Transaction Processor runs. Control is returned to the user immediately so other
application activities may be performed. Form response time is fast. The transaction will be
processed by running the Receiving Transaction Processor process. This program must be
scheduled to run periodically. The longer the interval, the more data the program will process
each time it runs. Errors are handled the same way they are handled when the mode is set to
Immediate. Typically, customers will run this program periodically based on their processing
and system requirements. For example, you may elect to run the process at a time when there
is relatively low database activity to help balance the load on system resources. Using this
method, receipt accruals are not processed until the concurrent process completes
successfully. Also, inventory value and on-hand quantities are not updated until the concurrent
request completes.
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Chapter 9 - Page 75
Receiving Tolerances
• You can set receiving tolerances for quantities

and for on-time delivery.
• You can determine what actions occur when the
receipt is outside of the tolerance
– None
– Reject
– Warning
• You can define receiving tolerances at the
organization, item, and/or order level.
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You can define days early and late that you will accept a shipment. You can also define what,
if any percentage above the quantity ordered you will receive.
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• None - no action is taken
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You have three actions you can place to enforce those tolerances:
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• Reject - The receiver is unable to receive the shipment. The buyer will have to either
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adjust the tolerances on the PO, or change either the quantity and need by date on the PO.
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• Warning - The receiver will see a pop up window if a tolerance is exceeded. The
receiver has the option of accepting the shipment or turning the shipment away.
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Receiving
Chapter 9 - Page 76
Control Numbers
Control Numbers
Purchasing uses three types of inventory control

numbers:
• Lot Numbers
• Serial Numbers
• Stock Locators
Control Numbers
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Lot Numbers
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A lot number is a unique number assigned to a certain batch or process run of a product. You
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can assign expiration dates for each lot number. Lot number control is an item attribute that
can be found and set by choosing the Inventory tab in either the Master Items or Organization
Items windows.
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Serial Numbers
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A serial number is a unique number assigned to an individual item. When an item under serial
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number control is received, the user performing the transaction will be forced to enter a unique
serial number for each item. Serial number control is an attribute on the inventory tab of the
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item (either in Master Items or Organization Items).
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Stock Locators
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You use locators to identify physical areas where you store inventory items. Item quantities
can be tracked by locator. Items can also be restricted to specific locators. An example of a
stock locator might be “Row, Rack, Bin” number. You can require Stock Locator control at
the inventory organization level, the subinventory level, or the item level.
Receiving
Chapter 9 - Page 77
Agenda
Agenda

Receipt
considerations
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Chapter 9 - Page 78
Substitute Receipts
Substitute Receipts
Yes
Is B a valid
Receive item B Delivery
substitute?
instead of A
Return No
Substitute Receipts
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When entering items in the Item Master, you have the ability to identify parts that can be
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substituted for each other. In Purchasing, you can receive predefined substitute items when
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you allow suppliers to ship alternatives to the item you order. Within the group of planning
applications (MRP, DRP, ASCP), only ASCP can be set up to recognize substitute part
numbers.
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Chapter 9 - Page 79
Unordered Receipts
Unordered Receipts
Yes
Match to
Unordered PO? Delivery
receipt
No
Requires matching
or return
Unordered Receipts
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You can receive items from a supplier when you do not have or do not know a corresponding
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purchase order number. These items are tracked on the system while you wait for a buyer to
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specify which purchase order should be used, or if the items are to be returned to the supplier.
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Chapter 9 - Page 80
Overview of Returns and Corrections

Returns
Identify
item
for return
Receiving Return delivery
Return to supplier RMA, reason code (optional)
Corrections
Correct as
Identify
many
error in
transactions
receiving
as necessary
Receiving

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Returns
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You can return delivered items to receiving and return received or delivered externally sourced
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items to the supplier if the purchase order has neither been canceled nor finally closed. You
can also return to the supplier unordered receipts that have not been matched. Optionally
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specify additional return information such as a Reason Code and RMA (Return Material
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Authorization) number.
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Corrections
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Purchasing provides the capability to correct any receiving transaction, except another
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correction and a return to a receiving transaction. Each transaction is done individually
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correcting the previous transactions until all applicable transactions are corrected.
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Receiving
Chapter 9 - Page 81
Entering Returns
Entering Returns
Return from Return from
inventory receiving
To the supplier or customer
Entering Returns
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Use the Receiving Returns window to enter returns against receipts, deliveries, transfers,
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acceptances, and rejections. You may enter an RMA number from your supplier, as well as
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specify any user defined return reason. You can return delivered items to a receiving location
when they are routed to the wrong destination, require inspection, or require a return to a
supplier or a customer in a later transaction.
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When you perform a Return to Supplier transaction, Purchasing reopens the associated
purchase order for the return quantity by reducing the original receipt quantity. You cannot
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perform a Return to Supplier transaction against a Finally Closed or Cancelled purchase order.
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When you perform a Return to Supplier transaction, Purchasing automatically creates both a
Return to Receiving and a Return to Supplier transaction.
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Receiving
Chapter 9 - Page 82
Entering Corrections
Item Costs Quantity on Hand
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Corrections are entered by using the adjustment quantity, either positive or negative. To
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reduce a ten-item delivery to nine, enter -1 in the Quantity field. To increase a ten-item
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delivery to eleven, enter 1 in the Quantity field. You cannot create supply when none exists.
For example, if you receive and deliver 10 items before discovering that you actually delivered
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11 items, you cannot simply increase the delivery quantity to 11. First you must increase your
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receipt transaction from 10 to 11. Then you can increase your delivery transaction from 10 to
11.
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Chapter 9 - Page 83
Difference between Returns and Corrections
Difference between Returns and

Corrections
Receiving Return Receiving Correction
Physical return of goods No physical return

to supplier of goods to supplier
Updates quantity on hand Updates quantity on hand
Updates cost Updates cost
Difference between Returns and Corrections

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items to the supplier if the purchase order has neither been canceled nor finally closed. You
can also return to the supplier unordered receipts that have not been matched.
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You can also optionally specify additional return information such as a Reason Code and RMA
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(Return Material Authorization) number.
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Receiving Correction
Purchasing provides the capability to correct any receiving transaction, except another
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correction and a return to a receiving transaction. Each transaction is done individually
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correcting the previous transactions until all applicable transactions are corrected.
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Receiving
Chapter 9 - Page 84
Guided Demonstration - Inspect and Deliver a Receipt (Required)
(N) Receiving > Receiving Transactions (M1-Seattle Manufacturing)
Perform a Quality Inspection
1. Receipt = Your receipt number
2. (B) Find
3. (B) Inspect
Note: If Oracle Quality is installed and at least one inspection plan exists for the transaction,
both the Enter Quality Results option in the Tools menu and the Quality button on the menu bar
will be enabled. If the QA: PO Inspection Profile option is set to Quality, when you click the
Inspect button, it opens the Quality Inspection window that you defined, instead of the
Purchasing Inspection window.
4. Enter inspection results according to the table:
Item Inspect Quantity Quality Code Reason Comment

Result
Code
XXMonitor Accept 2 Above Blank Passed
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Average inspection
XXMonitor Reject 2 Below
Average
On CompDefect Failed
inspection
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5. (B) OK
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6. Save
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7.
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Close the Receiving Transactions window.
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Deliver Goods to a Final Destination
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Open the Receiving Transactions window:
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(N) Receiving > Receiving Transactions
10. In the Receipt field, enter your receipt number.
Receiving
Chapter 9 - Page 85
11. (B) Find
12. Complete the Receiving Transaction according to the following table:
Inspection Qty UOM Destination Item Location

Type
Accepted Defaults Each Inventory XXMonitor M1-Seattle
Note: You’ll need to use this window carefully. Determine which record was the accepted item
and which was the rejected item!
13. Save
17. (B) Find

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Chapter 9 - Page 86
Guided Demonstration - Process a Return to Supplier (Optional)
(N) Receiving > Returns (M1 – Seattle Manufacturing)
You can use the Returns window to return goods to a supplier OR to a customer. You may
return goods to a customer if you had received defective goods, repaired them and are now ready
to return them. In this exercise, you will return the goods that failed inspection to the supplier.
Return Goods to a Supplier
1. In the Receipt field enter your receipt number from the prior lab.
2. (T) Transaction Details
3. Transaction Type = Reject
4. (B) Find
5. Click the line selector check box to the left of the Quantity field.
6. Enter return information according to the following table:
Qty Return-To Supplier RMA Number Item

2 Supplier XXIBM Corporation XXRMA XXMonitor
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8. Reason = CompDefect
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9. Save
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13. (B) Find
Receiving
Chapter 9 - Page 87
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Receiving
Chapter 9 - Page 88
Guided Demonstration - Correct a Receiving Error (Optional)
(N) Receiving > Corrections
Warehouse personnel are missing two items you’ve processed as delivered. You realize that you
processed your express receipt too quickly and the last two items were not shipped.
Correct the Delivery Transaction
1. Receipt = Your receipt from Express Receiving
3. Transaction Type = Deliver
4. (B) Find
6. Select shipment number 3 (the last shipment for the item on your purchase order)
7. Quantity = -2
8. Comments = Correct error in receiving transaction
9. Save
Correct the Receive Transaction

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10. Navigate to the Corrections window
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11. (N) Receiving > Corrections
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12. Receipt = Your receipt from the Express Receiving lab
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14. Transaction Type = Receive
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18. Quantity = -2
Receiving
Chapter 9 - Page 89
19. Comments = Correct error in receiving transaction
20. Save
Verify an Expected Receipt now Exists
21. Navigate to the Receipts window
22. (N) Receiving > Receipts
23. Number = Your purchase order number from #1
24. (T) Items
25. Item = XXSoftware
26. (B) Find
27. Note that you should now have an expected delivery for the last shipment of the
XXSoftware item.
30. In the Purchase Order = Your purchase order number from #1
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31. (B) Find
32. Select your Express Receipt (should be the second shipment)

On
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33. (B) Transactions to open the Receipt Transaction Summary window.e
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Receiving
Chapter 9 - Page 90
Practice - Inspect and Deliver a Receipt
Overview
In this practice you will inspect and deliver a receipt. Half of the items you found to be
defective. You will deliver half to their final destination and the other half will be returned.
Assumptions
Tasks


− Purchase Order = Your receipt number
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Note: If Oracle Quality is installed and at least one inspection plan exists for the
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transaction, both the Enter Quality Results option in the Tools menu and the Quality button
on the menu bar will be enabled. If the QA: PO Inspection Profile option is set to Quality,
I U
when you click the Inspect button, it opens the Quality Inspection window that you defined,
instead of the Purchasing Inspection window.
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Item
nte Inspect Quantity Quality Reason Comment
e I Result Code
Code
XXMonitor
cl Accept 2 Above Blank Passed
ra Average inspection
XXMonitor O Reject 2 Below
Average
CompDefect Failed
inspection
Receiving
Chapter 9 - Page 91
Inspection Qty UOM Destination Item Location

Type
Accepted Defaults Each Inventory XXMonitor M1-Seattle
Rejected Defaults Each Receiving XXMonitor M1-Seattle
Note: You’ll need to use this window carefully. Determine which record was the accepted
item and which was the rejected item!
7. Save
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On
se
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Receiving
Chapter 9 - Page 92
Solution - Inspect and Deliver a Receipt

• (N) Receiving > Receiving Transactions (M1-Seattle Manufacturing)

− Purchase Order = Your receipt number
3. (B) Find
4. (B) Inspect
Note: If Oracle Quality is installed and at least one inspection plan exists for the
transaction, both the Enter Quality Results option in the Tools menu and the Quality button
on the menu bar will be enabled. If the QA: PO Inspection Profile option is set to Quality,
when you click the Inspect button, it opens the Quality Inspection window that you defined,
instead of the Purchasing Inspection window.
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Item Inspect Quantity Quality
e O Reason Comment
Result Code
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XXMonitor Accept 2 Above
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Average inspection
XXMonitor Reject
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2 Below
& CompDefect Failed
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6. (B) OK
7. Save
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Receiving
Chapter 9 - Page 93
• (N) Receiving > Receiving Transactions
11. (B) Find

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Inspection Qty UOM Destination
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Type
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Accepted Defaults Each Inventory
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Rejected Defaults Each Receiving XXMonitor M1-Seattle
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Note: You’ll need to use this window carefully. Determine which record was the accepted
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item and which was the rejected item!
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13. Save
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Receiving
Chapter 9 - Page 94
16. (B) Find
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Receiving
Chapter 9 - Page 95
Practice - Process a Return to Supplier
Overview
You can use the Returns window to return goods to a supplier OR to a customer. You return
goods to a customer when you receive defective goods, repair them and then return them. In this
exercise, you will return the goods that failed inspection to the supplier.
Assumptions
Tasks

2. Open the Receiving Returns window:
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− Transaction Type = Transfer
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Qty Return-To
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Supplier
& RMA Number Item
2 Supplier
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− Reason = CompDefect
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5.
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Open the Find Receiving Transactions window:
Receiving
Chapter 9 - Page 96
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Receiving
Chapter 9 - Page 97
Solution - Process a Return to Supplier

2. Open the Receiving Returns window:
• (N) Receiving > Returns (M1 – Seattle Manufacturing)

− Transaction Type = Transfer
5. (B) Find
6. Click the line selector check box to the left of the Quantity field.
Enter return information according to the following table:
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Qty Return-To Supplier RMA Number Item
2 Supplier Advanced Network
On
XXRMA XXMonitor
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Receiving
Chapter 9 - Page 98
7. (T) Details
− Reason = CompDefect
8. Save
11. (B) Find
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Chapter 9 - Page 99
Practice - Correct a Receiving Error
Overview
Warehouse personnel are missing two items you’ve processed as delivered. You realize that you
processed your express receipt too quickly and the last two items were not shipped. In this
practice you will correct a receiving error.
Assumptions
Tasks


− Receipt = Your receipt from the Express Receiving lab
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− Transaction Type = Deliver
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5.
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Select shipment number 3 (the last shipment for the item on your purchase order)
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− Quantity = -2
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− Comments = Correct error in receiving transaction
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6.
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Navigate to the Corrections window
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(T) Transaction Details
− Transaction Type = Receive

Receiving
− Quantity = -2

− Number = Your purchase order number from Lab #1
11. Note that you should now have an expected delivery for the last shipment of the
XXSoftware item.

− In the Purchase Order = Your purchase order number from Lab #1
13. Select your Express Receipt
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Receiving
Solution - Correct a Receiving Error

• (N) Receiving > Corrections


− Transaction Type = Deliver
4. (B) Find
− Quantity = -2
7. Save
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Receiving
• (N) Receiving > Corrections

− Transaction Type = Receive
10. (B) Find
− Quantity = -2
13. Save
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• (N) Receiving > Receipts
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− Number = Your purchase order number from Lab #1
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15. (T) Items
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In
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16. (B) Find
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Note that you should now have an expected delivery for the last shipment of the
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XXSoftware item.
Receiving
− In the Purchase Order = Your purchase order number from Lab #1
18. (B) Find
19. Select your Express Receipt (should be the second shipment)
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Receiving
Overview of Pay on Receipt
Pay on options: Invoice consolidation

options:
By packing slip
Receipt
By receipt
Payables Invoice
Delivery
By site

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Purchasing works in conjunction with Payables to streamline the procurement process by
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generating invoices to suppliers based on receipt transactions. Negotiate with key suppliers to
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use Pay on Receipt. Every invoice created by the Pay on Receipt process is one less receipt
that needs to be manually keyed into Payables. Suppliers can still send the hard copy of the
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invoice if a physical copy is necessary for archiving. Pay on Receipt enables you to
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automatically create standard, unapproved invoices for payment of goods based on receipt
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transactions. Invoices are created using a combination of receipt and purchase order
information, eliminating duplicate manual data entry and ensuring accurate and timely data
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processing. Payment on Receipt is also known as Evaluated Receipt Settlement (ERS) and Self
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Billing.
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You can setup your suppliers so the invoice can be based on receipt of goods or delivery of
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goods to their final destination. The Invoice Summary Level, set at the Supplier Site, controls
the number of invoices generated.
• Packing Slip - One invoice will be generated per packing slip. (highest number of
invoices)
Receiving
• Receipt - One invoice will be generated per receipt.
• Site - One invoice will be generated per supplier site (fewest invoices)
After receipt or delivery transactions are created, you must run the Pay on Receipt Autoinvoice
process to create invoices and automatically match them to their corresponding purchase
orders. The Pay on Receipt Autoinvoice process can be set up to run automatically. Set the
PO: Invoice Number Prefix to add a prefix of your choice to the invoice that is created. The
number is created based on the Invoice Summary Level.
• Packing Slip - The packing slip number is used as a basis to generate the invoice number.
• Receipt - The receipt number is used as a basis to generate the invoice number.
• Site - The date is used as a basis to generate the invoice number.
Set the PO: ERS Aging Period profile option to a number of days after the receipt to actually
create the invoice when the Pay on Receipt Autoinvoice process runs. A delay will give you
time to enter corrections, adjustments and returns (if any) and will result in more accurate
invoices being created.
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Receiving
Agenda
Agenda

Receipt
considerations
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Receiving
Reports
Reports
Expected Receipts
Unordered Receipts
Substitute Receipts
Receiving Transactions Register
Receiving Exceptions
Receiving Value by Destination Account
Reports
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Expected Receipts Report
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The Expected Receipts Report can be used to review all or specific supplier sourced expected
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receipts or expected customer returns that have not yet been received for a particular date or a
range of dates. The report excludes purchase orders that are cancelled, closed, or closed for
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receiving at the header, release, line, or shipment level. You can specify the expected receipts
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you want to review.
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Unordered Receipts
ern
Int
The Unordered Receipts Report lists all or selected unordered receipts. Unordered receipts
refer to received items that receivers could not match to purchase orders or return material
le
authorizations (RMAs).
c
a
Substitute Receipts Report
r
O
Use this report to review all or specific substitute receipts.
Receiving Transaction Register
The Receiving Transactions Register lists detail information about your receiving transactions.
The register is sorted by item, category, receipt number, document number, and transaction
Receiving
date. The three-part document number represents purchase order number, purchase order line
number, and purchase order shipment number.
Receiving Exceptions Report
Use the Receiving Exceptions Report to review receipts for which there is a receipt exception.
These receipts cannot be automatically closed for receiving or invoicing. You can enter a
receipt exception when you receive the item.
Receiving Value by Destination Account Report
The Receiving Value Report by Destination Account lists received items by purchase order
destination and distribution account. If you accrue both inventory and expense at the time of
receipt, you may have both inventory and expense as part of your receiving valuation account.
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e O
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AI
& O
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Int
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Receiving
Reports
Reports
Receiving Value
Receipt Adjustments
Receipt Traveler
Reports (continued)
nly
Receiving Value
e O
Us
The Receiving Value Report shows item quantity, valuation, and detailed receipt information
for your receiving inspection location.
AI
Receipt Adjustments Report
& O
Use this report to review purchase order shipments or internal requisition lines with corrections
al
or returns to vendor.
Receipt Traveler
ern
Int
The Receipt Traveler facilitates receiving inspection and delivery of goods you receive within
your organization. After you receive the goods, you can print receipt travelers and attach these
le
tickets to the goods.
c
ra
O
Receiving
Summary
Summary
You should now be able be able to do the following:

• Describe the process of receiving goods
• Create Standard, Express, and Cascade receipts
Receipts, Returns and Corrections
• Understand Pay on Receipt
considerations
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Us
AI
& O
al
ern
Int
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Receiving
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Us
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Receiving

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11i Purchasing for End Users

Student Guide • Volume 2

Restricted Rights Legend

Paul Scott, Todd Round, Deanna McMillian

Technical Contributors and Reviewers

Procure to Pay Purchasing Overview ............................................................................................................1-1

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

• 11i Navigating Oracle Applications

• 11i Essentials for Implementers.

How This Course Is Organized

Title Part Number

Oracle Payables User’s Guide A81180-03

Oracle Purchasing User’s Guide A82913-01

Oracle iProcurement Installation Guide A85343-02

Oracle Inventory User’s Guide A83507-03

Implementing Oracle HRMS (US)

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

Caps and Buttons, Click the Executable button.

Courier new, Code output, Code output: debug.set (‘I”, 300);

Initial cap Graphics labels Customer address (but Oracle Payables)

Italic Emphasized words Do not save changes to the database.

e Ifunctions, schemas, column of the EMP table.

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

Passwords DROP USER scott

Lowercase Syntax variables CREATE ROLE role

Typographic Conventions in Navigation Paths

This simplified path translates to the following:

2. (M) From the menu, select Query then Find.

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Purchasing for End Users Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

Copyright © Oracle Corporation, 2003. All rights reserved.

Procure to Pay Lifecycle

Copyright © Oracle Corporation, 2003. All rights reserved.

After completing this module, you should be able to do

Copyright © Oracle Corporation, 2003. All rights reserved.

• Overview of purchase orders

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Purchase Order Types

Header Header Header Header

Line Line Line