Overview of Oracle purchasing in Oracle apps | Class 7

  Overview of Purchasing in Oracle apps

Overview of Purchasing in Oracle Apps

Create requisition to procure goods and service with supplier information, delivery instructions, multiple accounting distributions, and notes to buyers, approvers, and receivers. A request for quotation (RFQ) is sent to a supplier to request pricing and other information for an item. A quotation is the supplier’s response to that RFQ. Identify requisitions that require supplier quotations and automatically create a RFQ Or create manually and send it thru’ Fax or  I Supplier portal. Record supplier quotations from a catalog, telephone conversation, or response from your RFQ. You can also receive quotations electronically and import as Quotations (catalog). Review, analyze, evaluate and approve supplier quotations. Create standard purchase order, BPA and blanket releases. Inform your suppliers of your shipment schedule requirements. Record supplier acceptances of your purchase order’s terms and conditions. Provide a quantity and price for each item you are ordering. Alternatively, you should also be able to create your purchase order simply by providing an amount if you are ordering a service that you cannot break down by price and quantity. Enter goods and service receipt information against the PO using routing controls viz: Direct delivery, standard receipt or standard receipt with inspection. Transfer and deliver goods using the Receiving Transactions window. If you want to perform an inspection transaction, you can open the Inspections window to specify accepted and rejected quantities.

This cycle involves following steps from creating a requisition to transfer the details to GL.

  1. Create Requisition

Approve requisition

  1. Create Purchase Order

Approve Purchase Order

  1. Create Receipt after receiving the goods
  2. Create an Invoice in AP
  3. Pay the invoice
  4. Transfer, Import and Post Journal to GL

Purchase Order

Purchasing provides the Purchase Orders window that you can use to enter Standard and planned purchase orders as well as Blanket and Contract purchase agreements. You must be defined as a buyer to use this window.

Purchasing provides you the features you need to satisfy the following purchasing needs. You should be able to:

  • Review all of your purchases with your suppliers to negotiate better discounts
  • Create purchase orders simply by entering a supplier and item details
  • Create standard purchase orders and blanket releases from both on-line and paper requisitions
  • Create accurate and detailed accounting information so that you charge purchases to the appropriate departments

For Return to Vendor: Debit Memo is created

For Return Material Authorization: Credit Memo is created

Purchase Order Types

There are mainly 4 types of Purchase Orders

  • Standard Purchase Order
  • Blanket Purchase Agreements
  • Contract Purchase Agreements
  • Planned Purchase Orders

Standard Purchase Order

You generally create standard purchase orders for one-time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions.

Blanket Purchase Agreements (BPA)

You create blanket purchase agreements when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them.

You can issue a Blanket release against a BPA to place the actual order (as long as the release is within the blanket agreement effectively dates).

Contract Purchase Agreements

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

Planned Purchase Orders

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

You can issue scheduled releases against a planned purchase order to place the actual orders. If you use encumbrance accounting, you can use the planned purchase order to reserve funds for long term agreements.




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