Oracle iProcurement

Agenda
Overview Prerequisites Setups Creating Requisitions Managing Requisitions Desktop Receiving Catalog Management

Overview of iProcurement

Overview How Does Procurement Typically Work?

Essentially, it supports the procure-to-pay process in an organizations purchasing function.

Requisition

Approvals

Orders

Receiving

Payment

Overview Typical Procurement Issues

Lack of procurement information

Minimal coordination of common purchases across

organizations Scarcity of formal contracts - few long term agreements and blanket orders Small number of strategic partners Large amount of complexity - many people involved Lack of standardization - processes, systems

Internet Procurement allows organizations to perform the procurement activity electronically over the internet, using a suite of products.

Overview iProcurement

Enter requisition online using web forms and catalogs

Workflow approval

Purchasing Process

Supplier notified and delivers directly to the Requestor

Record receipt on the web

Overview

Overview

iProcurement Key Features

Streamlined Order Placement - Shopping

Shopping Lists

Copy Orders
Service requests Non Catalog Requests Automatic Document creation

Overview

iProcurement Key Features

Streamlined Order Placement - Billing

Procurement Card Purchases for Catalog Orders Oracle Projects Integration Tax Exempt Purchases Multiple Account Distributions and Account Generation Workflow Integration Multi-Currency Enhancements Notes - Additional Item Information, Upload and View Attachments Approvers - Approval Routing Configuration, Vacation Scheduling Review/Submit, Cancellations

Streamlined Order Placement

Prerequisites for iProcurement

Prerequisites
Oracle Core Purchasing setups - Jobs, Positions, Employees, Hierarchy, Approval groups,

Assignments, Item categories, Buyers, Purchasing / Financial /

Receiving options etc. Items availability in iProcurement from : -Internal Catalog: Items assigned to categories which have the attribute iProcurement check box as enabled and Web Enabled as Yes in Category Descriptive Flexfield or / and External Catalog: Managed by Supplier / Third Party / Self

Setups of iProcurement

Setups
1 2 2 3 4 5 Descriptive Flexfield for Item Categories Configure Account Regions Define Information Templates Define Realms Set Up Procurement Cards Set Up Attachments Required Required Optional Optional Optional Optional

6
7

Set Up Profile Options

Enable Function Security

Required
Optional

Setups

Descriptive Flexfield for Item Categories

Enable descriptive flexfield Item Categories

Label segment Use with iProcurement or something similar

Choose Attribute10 from external sources Enter a value Y for the item categories (the Items belonging to these categories only are available in iProcurement).

Information Templates

Are setup in Oracle Purchasing for capturing additional information in iProcurement Used to pass required information to the supplier Each Information Template must be associated with an item or a category

Setups

Realms

A realm is a set of access privileges A realm is used to control access to internal catalog content / external source at the user level

Procurement Cards

Procurement cards (P-Cards) are setup with Accounts Payable and can be

used for iProcurement requisitions

Define which users are allowed to use procurement cards

Attachments

iProcurement allows attaching of additional information to the

requisitions (Types: File, URL, or Note)

Type of note determines who will be allowed to see the note

Setups

Profile Options
ICX: Allow Funds Override
Indicates whether a requestor can override their allowed funds, if encumbrance is enabled. ICX: Date Format Mask Determines the date format. ICX: Days Needed By Sets the number of days until the user needs to receive an order.

 Profile Options
ICX: Language
Determines the language. ICX: Limit Connect Sets the maximum number of page hits per session. Set the value to 1000. ICX: Limit Time Determines the maximum time limit a user can be logged into the system. Default is 4 hours.

ICX: LOV Type

Should always be set to HTML.

 Profile Options
POR: Approved Pricing Only Restricts user access to only those items associated with contracts or templates. POR: Goods Line Type Determines line type for goods type non-catalog order. POR: Rate Based Services Line Type Determines line type for rate-based Service type noncatalog orders. A rate-based Service is a monetary

charge per four, day, and month.

 Profile Options
POR: Edit Accounts Region Enables the user to support multiple chart of accounts. POR: Multiple Accounts Region Enables the user to support multiple chart of accounts.

 Function Security

iProcurement allows assignment and modification of responsibilities to control users access If the responsibility is not secured the functions allow the user to

see all the data within the Web page that is brought up

If the responsibility is secured, additional security checks are made to determine which data, if any, is displayed by its functions Securing attributes are used to control the data that is displayed

Creating Requisitions in iProcurement

Creating Requisitions

Why Purchase Requisitions?

Purchase requisitions allow decentralisation of requisitioning of goods and services Purchase requisitions allows users to source the requisition with the best suppliers and at the lowest cost

Purchase requisitions ensure that the appropriate management

approval is given before purchase orders are created

Purchasing Process Overview..

Business Needs Associated with Purchase Requisitions

Automate the procurement process
Monitor and control spending amounts by approval authorizations Simplify the interaction with suppliers Free buyers from daily transactions to focus on negotiation management and supplier analysis Reduce administrative costs and inefficiencies

Overview of Purchase Requisition Creation

Shopping lists

Catalogs Choose items or enter lines Non-catalog request Purchase Requisition

Overview of Obtain and Grant Requisition Approvals

View, modify, approve and forward documents Respond to notifications via the Notification Viewer, web or email Control approvals by amount, cost center, account

Control requisition approval routing according to management

structure Reassign or forward requisitions for approval if approver is not available or on vacation Route requisition to next approver when timely response is not received

Creating and submitting purchase requisitions

The iProcurement Home Page offers one click access to: Initiate the creation of a requisition Search for or select items to order from the catalog or a supplier site

View and respond to notifications

View the status of requisitions

Requisition Creation Flow

Log into iProcurement

Find items

Add items Proceed to Checkout Edit shopping cart Proceed to Checkout

Submit requisition Checkout

Review requisition

Shopping at Supplier Sites

You can shop for items from a supplier web site that your

company has an arrangement with

To requisition an item off of a supplier site, you will need to click on the link to the supplier site from your Home Page or the Shopping Page

Checkout Information
Delivery stage

Date on which the items are required to be delivered Requester Location to deliver to Different delivery information for each line item A one-time address Procurement card Taxable status Project to bill to
Procurement cards (p-card) are corporate credit cards assigned to an employee to use when requisitioning items from suppliers Automatically flags shopping cart lines for p-card payment and defaults in the appropriate p-card number After approval and purchase order creation, a p-card order is generated and transmitted to the supplier

Billing stage

Different billing information for each line item Multiple charge accounts for a single line item

Checkout Information
Notes stage

Description for the requisition

Notes to the buyer and approver Attachments

Approval stage

Review list of approvers

Specify additional approvers * Change first approver * Delete non-mandatory approver * Add note to approver Attach justification attachment

* Note: These functions will be available / unavailable as per the security setup

Checkout Information
Review / Submit stage

View the details of the requisition before submitting it

Submit the requisition for approval Resubmit a rejected or returned requisition

Managing Requisitions in iProcurement

Managing Purchase Requisitions

Viewing requisitions

Copying requisitions
Canceling requisitions Withdrawing requisitions Resubmitting requisitions Approving Requisitions

Receiving in iProcurement

Receiving Orders
Receiving of goods and services can be done in either Oracle

Purchasing and iProcurement

Receiving represents the final step of the ordering process:

Records receipt of goods and services Initiates the payment process

Receiving Orders
Receiving of goods and services can be done in either Oracle

Purchasing and iProcurement

Receiving represents the final step of the ordering process:

Records receipt of goods and services Initiates the payment process

Overview of Receipt Types

Standard Destination type: Receiving

Receive

Direct Destination type: Inventory, Expense, or Shop Floor

Location Location Location Final destination

Inspection Inspection Inspection

Final destination

iProcurement Receiving
Features of receiving orders in iProcurement: The requisitioners are allowed to receive at their desktop from the browser Requesters can view and receive orders in a simple, workflowdriven self-service interface. Requesters can review the order details and confirm receipt of requested goods and services. iProcurement automatically records the receipt transaction.

Requesters can optionally enter additional information like

packing slip number, waybill/airbill number, etc.

iProcurement Receiving
Features of receiving orders in iProcurement: The requisition is required to have a purchase order or blanket release associated with it to be received The routing of the item to be received must have been set to Direct Delivery

Centralized Receiving Functions

All iProcurement receiving functions are located on the Receiving

page
From the Receiving home page a Requisitioner can:

Receive Return Correct View receiving transaction history

*Note:

In iProcurement receiving, a Requisitioner can transact someone elses items

also Access for the Requisitioners can be restricted to only their items by excluding the above functions from the respective Internet Procurement responsibility

Catalog Management

Catalog Types
iProcurement uses a simple, web-based graphical interface to

create requisitions using catalog data from internal and

external sources. Oracle Internet Procurement 11i supports multiple sources for item selection. Items may be selected from catalogs:

from internal sources

from external sources hosted by suppliers and marketplaces

Loading Catalog Data From Internal Sources

Items and categories in Oracle Applications can be loaded into Oracle Internet Procurement 11i catalogs. The extracted purchasing data includes:

Items from the Master Organization Requisition Templates Blanket Purchase Agreements Catalog Quotation information Approved Supplier Lists

Loading Catalogs: Concurrent Programs

Catalog Extract Data-Classifications

Extracts categories in Purchasing Default Category Set Also extracts Requisition Template names defined in Oracle Purchasing

Catalog Extract Data-Items

Oracle Inventory Master Items Oracle Purchasing Blanket Purchase Orders and Catalog Quotation lines Requisition Template lines

Catalog Data Purge

Inactive Blanket Agreements Inactive Quotations Inactive Items Inactive Requisition Templates

Loading Catalog Data From External Sources

Catalogs from external sources may be provided by a supplier

or by companies that provide third party content

management services Catalogs from these sources are loaded onto iProcurement via XML files or spreadsheets Templates and instructions that help create these catalog files can be downloaded from the eContent Manager of Oracle iProcurement 11i.

Catalogs Hosted by Suppliers/Marketplace

A Supplier Hosted catalog is maintained by a third-party

supplier
Marketplace catalog is maintained by a third party catalog provider Users navigate these catalogs through a web page link, via their corporate firewall, before returning to iProcurement to complete their requisition.

Catalogs Hosted by Suppliers/Marketplace

1. User selects link to external catalog 2. External catalog asks iProcurement (using the secure authentication server) to authenticate the user. 3. iProcurement responds to the request with an XML document indicating whether user was successfully authenticated 4. User then shops at external site, selects items and finally indicates they are ready to add items
1 2 3 4 Firewall Externally Hosted catalog

to their requisition.
External catalog then transmits items to iProcurement where they are converted to requisition lines.

iProcurement