Oracle apps Procurement Learning

Types of Key Flexfield Forms
Key flexfields appear on three different types of application form:
• Combinations form
• Foreign key form
• Range form

Set of Books
==========
A financial reporting entity that uses a particular chart of accounts,functional currency, and accounting calendar. Oracle General Ledger secures transaction information (such as journal entries and balances) by set of books. When you use Oracle General Ledger, you choose a responsibility that specifies a set of books. You then see information for that set of books only.

Business Group
============
The business group represents the highest level in the organization structure, such as the consolidated enterprise, a major division, or an operation company. The business group secures human resources information. For example, when you request a list of employees, you see all employees assigned to the business group of which your
organization is a part.

Legal Entity
=========
A legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to this type of organization.

Balancing Entity
=============
Represents an accounting entity for which you prepare financial statements. This is a segment in the Accounting Flexfield structure (usually the Company segment) at which all accounting entries must balance. There may be multiple companies within the same structure, and each of these must balance within itself. Each legal entity can have one or more balancing entities. You can use Flexfield Value Security rules to restrict data entry of balancing segment values by legal entity or operating unit.

Operating Unit
=============
An organization that uses Oracle Cash Management, Order Management and Shipping Execution, Oracle Payables, Oracle Purchasing, and Oracle Receivables. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity.
Information is secured by operating unit for these applications. Each user sees information only for their operating unit. To run any of these applications, you choose a responsibility associated with an organization classified as an operating unit.

Inventory Organization
==================
An organization for which you track inventory transactions and balances, and/or an organization that manufactures or distributes products. Examples include (but are not limited to) manufacturing plants, warehouses, distribution centers, and sales offices. The following applications secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering, Work in Process, Master Scheduling/MRP, Capacity, and Purchasing receiving functions. To run any of these applications, you must choose an organization that has been classified as an inventory organization.


PO
=====
Lookups:
Acceptance Type:
FOB:
Pay Group:
Price Type:
Quotation Approval Reason:
Reply/Receive Via:
PO/Requisition Reason:
Vendor (Supplier) Type:

Line Types in Purchasing Documents
===========================
Oracle Purchasing provides the line type feature so that you can clearly differentiate orders for goods from those for services or outside processing. In addition, the services related line types support a broad range of service categories including general business services, consulting services, and contingent labor.

Purchasing provides you with the features you need to order both goods and services.

The line type governs the type of requisition, purchase order, RFQ, and quotation lines you create. Quantity-based line types let you order and receive and/or invoice based on the quantity of goods or services provided. Amount-based line types let you order and receive and/or invoice based on the value of the service provided.

Enter the Value Basis for the line type.
Amount: Receive items by amount. You cannot change the unit of measure and unit
price on purchasing document lines.
Fixed Price: If Oracle Services Procurement is implemented, enter services by
amount only. Receive items by amount. You cannot change the unit of measure and
unit price on purchasing document lines.
Quantity: Receive items by quantity. Outside Processing line types must have this
value basis.

Enter the Purchase Basis for the line type.
Goods: For quantity value based line types.
Services: For amount and fixed price based line types.
Temp Labor: If Oracle Services Procurement is implemented, for fixed price and rate
based line types.

• Bid - The quotation or RFQ is for a specific fixed quantity, location, and date.
• Catalog - The quotation or RFQ includes price breaks at different quantity levels.

Forward
=======
• Direct - The default approver is the first person in the preparer's approval path
that has sufficient approval authority.
• Hierarchy - The default approver is the next person in the preparer's approval
path regardless of whether they have approval authority. (Each person in the
approval path must take approval

Workflow Startup Process is the highest-level process in a workflow.
==============================================
The default startup process for the PO Approval workflow is the PO Approval Top
Process. The default startup process for the PO Requisition Approval workflow is
the Main Requisition Approval Process.

For requisitions only, select the Approval Transaction Type. If you have implemented Oracle Approvals Management, this selection associates the transaction type with the requisition document type.

Center-Led Procurement Accounting
==========================
In a centralized procurement environment you may create a purchase order in one operating unit, but require shipment to a different operating unit. Accounts are provided to ensure proper financial reconciliation between the procuring business unit and the receiving business unit using intercompany invoicing. This accounting requires that a transaction flow is defined between the two organizations.

Defining a transaction flow consists of these steps:
1. Define transaction flow
2. Define intermediate nodes
3. Define intercompany relationship

Controlling Purchasing Periods
======================
Use the Control Purchasing Periods window to control the purchasing periods defined in the Accounting Calendar window. You use purchasing periods to create journal entries in your general ledger system. Purchasing lets you create journal entries only for transactions you enter in an open purchasing period.


Expense Charge Account Rules
=======================
When determining the default charge account for a line with a destination type of expense, the account generator may reference the charge account defined on the employee record. If the account generator references the employee record, then the Expense Charge Account Rules enable you to override one or multiple segments of that default account based on the item category.

• Destination type is expense
• Purchase order was not created from a requisition
• Account was not set in preferences
• Account was not successfully derived from project-based rules
• Account was not successfully derived from the item setup

Timeout Feature
==============
The Timeout feature in the approval workflow enables you to specify a period of time after which, if no response has yet come from an approver, a reminder is sent. You can send up to two reminders to an approver using the Timeout feature. You can also specify that after a certain period of time, the document is forwarded automatically to the next approver in the hierarchy.

Starting the Send Notifications for Purchasing Documents Process:
==============================================
The workflow process, Send Notifications for Purchasing Documents, looks for documents that are incomplete, rejected, or in need of reapproval and sends notifications to the appropriate people of the document's status.

Approvals
=========
Approval hierarchies let you automatically route documents for approval. There are two kinds of approval hierarchies: position hierarchy and employee/supervisor relationships.

When you build your hierarchies, always begin with the most senior position and work down. Use your organization charts and predefined special approval paths to facilitate this process

Security Level
===========
Public All system users can access the document
Private Only the document owner and subsequent approvers can access the document
Purchasing Only the document owner, subsequent approvers, and individuals defined as buyers can access the document
Hierarchy Only the document owner, subsequent approvers, and individuals included in the security hierarchy can access the document Within the installation security hierarchy, you can access only those documents that you or
your reporting employees own

Access Level
==========
View Only Accessing employees can only view this document
Modify Accessing employees can view, modify, and freeze this document
Full Accessing employees can view, modify, freeze, close, cancel, and final-close this document

Defining Approval Authorization Rules
============================
An approval group is a set of authorization rules comprised of include/exclude and amount limit criteria for the following Object Types: Document Total, Account Range, Item Range, Item Category Range, and Location. For each position or job, you ultimately associate these approval groups with document types to implement your authorization rules.

Purchasing uses the most restrictive criteria during the authorization check.
A Pre-Approved document does not show up as supply. A Pre-Approved document is
one that meets the following conditions:
• A person with the final authority to approve the document approves it, but then forwards it to someone else for additional approval, thus changing its status to Pre-Approved.
• Your organization uses encumbrance (reserves funds for documents), and the document is authorized for approval but funds have not yet been reserved for it.

To mass forward documents:
======================
1. Select Forward Documents from the menu. Purchasing displays the Find Documents window, where you must identify an approver or document number and operating unit.. In this window enter or select the name of the original approver, or enter the document number, and select OK to display the Forward
Documents window.

Control:
========
When you cancel a purchase order entity, you are unable to receive or pay for cancelled items and services, however, you can pay for all previously received orders.

Final-closed documents are not accessible in the corresponding entry forms, and you cannot perform the following actions against final-closed entities: receive, transfer, inspect, deliver, correct receipt quantities, invoice, return to supplier, or return to receiving.

Freeze your purchase orders and releases to prevent changes or additions while maintaining the ability to receive and match invoices against received shipments. You cannot access frozen documents in the entry forms.

Place documents on hold to unapprove them while preventing printing, receiving, invoicing, and future approval until you remove the hold.

When you firm an order, Master Scheduling/MRP uses the firm date to create a time fence within which it will not suggest new planned purchase orders, cancellations, or reschedule-in actions.

Close, Close for Receiving, Close for Invoicing
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..

Requisition Import.
===============
Master Scheduling/MRP, Work In Process, Order Management, and Inventory all provide requisition information to the requisition interface table from which Requisition Import creates requisitions.

Inventory Replenishment Requests
========================
Inventory generates replenishment requests automatically using the following methods:
• Min-Max Planning
• Reorder Point Planning
• Subinventory Replenishments for Replenishment Counts
• Kanban Replenishments

Internal Sale order Cycle:
===================
Create IR -> Approve> Create internal order CP> Run order Import CP> Book order> Pick release>ship confirm> Receipt