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Procurement Core Process
Including purchase requisitions, purchase orders, purchase receipt.
In fact, the procurement business involves more processes, including materials, supplier certification and maintenance, procurement sourcing, bidding and a series of processes.
For procurement needs to use the Supplier information maintenance, the maintenance of material information has been described earlier. Materials and suppliers are the basic data for purchasing management, and after the materials and suppliers are maintained, they can further maintain the correspondence between suppliers and materials, which is called supply source maintenance in ERP.
Supply source maintenance includes list of suppliers for material approval, approval of supplier list to establish correspondence between material, supplier, supplier shipping organization and location, etc.
An item can have more than one qualified vendor, then the supply scale information for each vendor can be further maintained. Then, after defining the supply source rules and the supply ratios for each supplier, the planned order purchase can be divided into different suppliers according to a predetermined percentage. This scenario is typically used when a purchase order is automatically generated by a more purchase requisition or MRP planning requirement information. From a long period of time, the supply of each supplier should be in accordance with the delivery ratio allocation set.
Purchase requisition process
purchase requisitions and purchase orders
1. Production Subject: Requisitions can be submitted by each business needs department, purchase orders only the procurement department can produce.
2. Document contents: The requisitioning department only cares about the purchase material and the delivery period, generally does not specify the specific supplier and the price, the supplier and the price is the matter of purchasing.
3. Correspondence: Requisitions are generally based on project requirements, may need to be purchased from multiple suppliers, and a requisition can correspond to a variety of purchase orders.
4. Basic data: The purchase of materials and suppliers may be new or existing, depending on the content of requisitions involved in different procurement implementation strategies.
Requisition Core Object Table
1. Requisition Head: Po.po_requisition_headers_all
2. Purchase requisition Details: Po.po_requisition_lines_ All
3. Requisition allocation: Po.po_req_distributions_all
Requisition header does not have much important information, mainly the purchase order number, requisition type, including the purchaser, the main purchaser and the staff of the Hr_employees form to associate.
The purchase order details need to give information such as purchase material and version, material description, quantity of requisitions, requirement date, target type and organization, place of delivery, recommended supplier, etc. The requisition details need to be associated with the material table. The requisition allocation is primarily split into specific accounts and needs to be further understood.
Purchase requisition is completed, corresponding to the specific procurement implementation strategy, including public bidding, invitation to bid, exclusive designation and other procurement implementation strategy. In the ORACLEERP system inside the purchase requisition after the completion of the corresponding to the inquiry, supplier quotation, after the quotation to negotiate the final determination of suppliers and materials. Prior to the official purchase, there must be a series of offline processes to complete the input of supplier and material base data.
Purchase Order Core Table
Purchase order header: Po.po_headers_all
Purchase Order Details: Po.po_lines_all
Purchase order run: Po.po_line_locations_all
Purchase order allocation line: Po_distributions_all
The purchase order header mainly includes the purchase order number, the purchase type, the supplier, the place, the buyer, the order description and so on basic information.
Split the purchase order lines, on the line split can determine the specific items purchased to the supplier, quantity of items, unit price, currency, exchange rate, delivery period and a series of information.
Purchase order run split the core purpose is to have multiple delivery locations for the same item of the same purchase order, the quantity delivered at different delivery locations on different dates.
(Shipping different pickup locations or the same pickup location but two different delivery times)
The purchase order allocation lines are further split into different projects, so that the actual item information and project requirements for the purchase are hooked up.
(corresponds to two different fee accounts, or the cost is to be borne by two different departments respectively)
In the purchase order to run maintenance, also need to maintain follow-up invoice matching methods and rules, including two single-match, three-single matching.
The usual three-order match is the match for the purchase order, the Payables invoice, and the purchase receipt. If the receipt is not directly into the storage also need to be submitted, it may involve four single match.
Standard purchase orders and blanket purchase agreements
The procurement Management system provides the following four types of purchase orders, the common order type is the standard purchase order and the blanket purchase agreement
1. Standard purchase Order: The order type used to make a one-time purchase when a purchase order is created that requires explicit details of the specific item or service (such as price, quantity, delivery date, and accounting allocation).
2. Planned purchase order: a long-term agreement that requires the designation of a tentative delivery plan and all details of the goods or services to be procured, and the issuance of planned purchase orders to the actual order of the goods, as required.
3. Blanket purchase agreement: is a long-term procurement agreement, the details of these materials or services are known but not yet specific delivery plans, before the actual purchase of materials, with a blanket purchase agreement price to specify the purchase price of the item.
4. Contract Purchase Agreement: agree with the supplier on specific terms and conditions but do not specify the materials and services to be procured. This contract is then referred to later when a standard purchase order is issued.
A blanket purchase agreement is sometimes called the Framework Agreement, the framework agreement is focused on only the determination of material and the price after negotiation, while the actual delivery plan is then determined, if the corresponding VMI supply-side Library management model, the possible way may also be the establishment of a blanket purchase agreement, and the material set up a corresponding supplier list. Replenishment of the escrow materials, according to replenishment notification, in the ERP system to establish a standard purchase order.
Purchase order order related control rules (to be refined)
Remove unapproved lines, shipments, and distributions that have not been approved or added to a previously approved document through full or partial cancellation of the document, termination of an existing purchase with the supplier by finalizing the completed order, indicating that no other internal activity is frozen or withdrawn from the completed order to control whether the document is allowed to be modified Hold a document to prevent printing, receiving, invoicing, and approving documents until the pending fixed purchase order is lifted to prevent MRP from recommending a re-scheduled advance, cancellation, or new planned purchase order in the time bar created by a fixed date control how the purchasing management system automatically closes documents for receiving and invoicing activities
Purchase order Status
In the purchase order control, specifically related to cancellation, final close, freeze, unfreeze, fixed, pending, receive to close, invoicing to close, close, delete various purchase order status. Specific as follows:
For documents that are not submitted for approval, you can delete the entire document, the document line, and the shipment directly in the Document creation window. For documents that have been submitted for approval, you can delete unapproved lines, shipments, and distributions that were added later. Once deleted, the request associated with the order is automatically returned to the application set and can be reassigned to another purchase order or issued using the Auto Create document window. After the delete operation is executed, the document data is deleted directly from the system and can no longer be removed from the corresponding interface and data table.
The document creator may terminate or partially terminate the existing contractual relationship with the supplier by completely or partially canceling the document header, line, shipment, distribution. If the purchase order entity is canceled, the canceled items and services cannot be received or paid, but the orders received before the cancellation can be paid. In addition, you cannot modify a canceled entity or its components. If an application line already has an associated purchase order, the row cannot be canceled. Canceling an action is an irrevocable operation, and you can cancel a document or its components only after you have ensured that all required activities have been completed. After the document is canceled, the corresponding data is still displayed in the document Summary screen, but the document is inaccessible. Through the system setup, the buyer can cancel the order at the same time, choose whether to cancel the purchase requisition at the same time, otherwise, the application will automatically return to the application set.
For example, if an item A and B are ordered with a vendor, and then the item B is no longer required because of a design change, the order line containing item B can be canceled. If the order quantity of item A is 30 pieces, and the production only needs 0 pieces, after receiving 0 pieces and completing the subsequent transaction, the order line can be canceled, the remaining 0 pieces will be canceled, and the 0 items received are still valid.
finally closed .
You can prevent modification or execution of documents by eventually closing completed documents, lines, and shipments. After the document is finally closed, the document cannot be accessed in the appropriate Entry Form window, nor can the following activities be performed on the entity that is eventually closed: Receive, transfer, inspect, deliver, correct the received quantity, invoice, return the supplier or return to the receipt. Documents that include the final closed entity can be approved, but documents that are eventually closed at the head level cannot be approved. You can print documents that are eventually closed. When a document is closed, the requisition associated with the order does not automatically return the request set. The final closing of documents is an internal control activity of the Orace purchasing system and does not affect the contractual relationship with the supplier, i.e. the contractual relationship with the supplier remains valid.
Final closure is an irrevocable activity, and it is generally not recommended to close a document or its components until all required activities have been completed.
Suspend and release pending.
Only documents with a status of "in process" can be suspended, and a document hold prevents printing, receiving, invoicing, and further approval while revoking the approval document until the suspension is lifted.
For example, after the purchase order is submitted for approval, it is found that there are some problems in the contract terms, during the negotiation with the supplier, the document can be "suspended" until the issue is resolved and then the "release pending" is executed.
Frozen and not frozen .
If you want to prevent any further modifications or other activities to the purchase order, you can freeze the purchase order, and the freeze operation can only be performed at the header and the release level. After a purchase order is frozen, the ordered goods can still be received and paid. If you want to prevent the receipt or invoice from being matched with this purchase order, you should either cancel or eventually close the purchase order. Freeze operation is a reversible operation, in the control document interface execution "Not Frozen", you can revoke the frozen document. Frozen orders cannot be accessed in the entry form.
Close, receive off, invoice off .
Oracle purchasing automatically turns off receiving and invoicing based on the control options specified in the Procurement Options window in the system (receive close tolerance, receive close point, and invoicing settlement tolerance). Once all shipments for the specified line are closed, Oracle purchasing automatically closes the row, and Orace purchasing automatically closes the document once all the rows for the specified header are closed. In addition to the automatic shutdown of the system, it is also possible to manually close or close the receipt in the document control interface to control the receipt and invoicing of orders within a certain period.
For example: System set close tolerance is 95%, if ordered an item 00 pieces, has received 96 pieces, then the system automatically shuts down the reception of this line. If a batch of suppliers sent 94 pieces, the buyer believes that the remaining 6 pieces can no longer be required, can be manually closed in the document control interface to receive, then this line is no longer acceptable. After you have "closed", you can reopen the document in the Document control screen.
Purchasing Management Core Process
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