Purchasing Setup of Approval Hierarchies in Oracle R12

Create an Inventory Organization in R12 PO

 

Create an Inventory Organization

Responsibility = Purchasing, Vision Operations

1. Navigate to the Organizations window:

• (N) Setup > Organizations > Organizations

2. (B) New

• Name = XXManufacturing
• Type = Plant
• Enter a date in the From field early enough for any historical information that you need to enter. (The default is the current date.)
• To Date = Leave Blank
• Location = XXManufacturing

3. Save

Note: Multiple inventory organizations can share the same physical location if the Inventory Organization field associated with the Location was left blank (as in the prior exercise!).

4. For the Name field in the Organization Classifications region, use the list of values to select Inventory Organization.

5. Select the Enabled check box (use the mouse or the space bar).

6. Save

7. (B) Others

8. In the Additional Organization Information window, select Accounting Information.

9. OK, then click in the Accounting Information field.

• Primary Ledger = Vision Operations
• Legal Entity = Vision Operations
• Operating Unit = Vision Operations.

10. OK

11. OK

12. (B) Yes to save changes.

13. Close the Organization Parameters window but do NOT close the Organization window.

Assign the Organization to an Existing Item Master

14. Re-open the Organization Parameters window:

• (B) Others

15. In the Additional Organization Information window, select Inventory Information.

16. (T) Inventory Parameters

• Organization Code = XXM
• Item Master Organization = Vision Operations
• Calendar = Vision01
• Demand Class = West US

17. (T) Costing Information

Account Type	Account
Material	01-000-1410-0000-000
Outside Processing	01-000-1450-0000-000
Material Overhead	01-000-1420-0000-000
Overhead	01-000-1430-0000-000
Resource	Leave field blank
Expense	Leave field blank

18. (T) Other Accounts

Account Type	Account
Purchase Price Variance	01-540-5210-0000-000
Invoice Price Variance	01-540-5220-0000-000
Inventory AP Accrual	01-000-2215-0000-000
Sales	01-540-4160-0000-000
Cost of Goods Sold	01-540-5200-0000-000
Deferred COGS Account	01-540-5200-0000-000

19. (I) Save

(Enter 1 for Starting Serial Number and click OK when the pop-up note concerning Organizational Costing Methods appears.)

Note: A huge difference between a Location and an Inventory Organization is that Inventory Organizations determine a lot of accounting that gets sent to the General Ledger! For Purchasing, we are mainly concerned about Purchase Price Variance, Invoice Price Variance and Inventory AP Accrual accounts.

20. Close the Organization Parameters window but do NOT close the Organization window.

Specify Receiving Information

21. Re-open the Organization Parameters window:

• (B) Others

22. In the Additional Organization Information window, select Receiving Information.

• Days Early = 5
• Days Late = 5
• Receipt Days Exceed-Action = Warning
• Tolerance = 5%
• Over Receipt Action = Warning
• Receipt Routing = Standard
• Allow Unordered Receipts = Checked
• Allow Express Transactions = Checked
• Allow Cascade Transactions = Checked
• Next Receipt Number = 1000
• Receiving Inventory Account = 01-000-1410-0000-000
• Clearing Account = 01-000-2929-0000-000

23. (B) Save and exit window.

Oracle Purchasing

Requisition:

Requisition is a document where the need for the material is specified and is raised by an employee.

Types of Requisitions.

1. Internal Requisition: Transferring the material from one dept to another within the same company and not from the third party (if the reqt is fulfilled within the company) is known as Internal requisition.

2. Purchase Requisition: If we want to purchase the material from outside vendor then we raise Purchase requisition.

RFQ (Request for Qutotation):

The purchasing manager asks the supplier to send the quotation for the required material with the help of RFQ.

Types of RFQ:

1. Standard RFQ: The normal quotation is the standard rfq.

2. Bid RFQ: It is raised when we are planning to purchase heavy material which lasts longer.

3. Catalog RFQ: When we request the supplier to send catalog of items along with the quotation then it is called as catalog rfq.

Quotation:

A statement of the price, terms and conditions of sale, a supplier offers us for an item or items. It is a detailed description of goods or services offered by the supplier.

Types of Quotations:

1. Standard Quotation

2. Bid Quotation

3. Catalog Quotations

Purchase Order:

It is a statement which contains the required items, quantity, price,date when we need and the location where we need.

Types of Purchase Orders:

Blanket PO

Contract PO

Planned PO

Standard PO

Standard PO:

It is used for only one time purchase of various items when we know the details of goods or services we require, estimated cost, qty, delivery schedules and accounting distributions.

Blanket PO:

It is raised when we know the details of goods or services that we plan to buy from a specific supplier in a period, but we don’t know the details of delivery schedules.

Contract PO:

Here we don’t know any information regarding items but just know the terms and conditions.

Planned PO:

A planned po is along term agreement committing to by items or services from a single source. Here we know all the details.

Main concepts in PO:

Ø Item details

o Defining item category and its segment values

o Registering the item category.

o Define category sets and item.

Ø Employee

o Defining job and position of the employee

o Defining employee and his approval limits

o Defining the employees as buyers

§ Define and assign the approval groups to the employees

Ø Supplier

o Define and approve the supplier

o Define the supplier list

: Flow of Purchase Order

Ø Raise the requisition.

Ø Check whether the requisition is approved or not.

Ø Raise RFQ.

Ø Raise the quotation.

Ø Raise the purchase order.

Ø Receipts

Ø Inspect the goods

Matching approval levels:

2-Way Matching

Invoice à P.O.

Invoice à Receipts

3-Way Matching

Invoice-à P.O.

Invoice à Receipts

Invoiceà Invoice

4-Way Matching

Invoice-à P.O.

Invoice à Receipts

Invoiceà Invoice

Invoice à Inspect

Oracle R12 New Tables

Payables

New Tables

Table Name	Feature Area
CE_BANK_ACCOUNTS	Internal Bank Accounts
CE_PAYMENT_DOCUMENTS	Payment Documents to be used for Printed type Payments
IBY_EXTERNAL_PAYEES_ALL	Payee (Trading Partner Info for paying invoices
IBY_PMT_INSTR_USES_ALL	Used for Remit to Bank Accounts
AP_INVOICE_LINES_ALL	Invoice Lines
AP_ALLOCATION_RULES	Invoice Lines
AP_INVOICE_LINES_ALL	Invoice Lines
AP_ALLOCATION_RULES	Invoice Lines
AP_ALLOCATION_RULE_LINES	Invoice Lines
AP_ALLOCATION_RULE_LINES_GT	Global Temp Table for Invoice Lines – Allocations
AP_SELF_ASSESSED_TAX_DIST_ALL	E-Business Tax
AP_PRODUCT_REGISTRATIONS	Invoice Lines
AP_PRODUCT_SETUP	Multi Org Access Control
AP_TOLERANCE_TEMPLATES	Support of complex PO Contracts
AP_NEGOTIATION_HIST	Invoice Requests
AP_NEGOTIATION_HIST	Holds Resolution Workflow

Changed Tables

Table Name	Feature Area	Brief Description of Change
AP_INVOICES_ALL	Invoice Lines, eBusiness Tax, Payments, SLA, Complex Work POs…	Numerous columns were added to this table due to almost all the projects done for R12, for list of columns added please refer to the TDD of the respective projects.
AP_INVOICE_DISTRIBUTIONS_ALL	Invoice Lines, eBusiness Tax…	Number of columns were added to this table due to almost all the projects done for R12, for list of columns added please refer to the TDD of the respective projects.
AP_INV_APRVL_HIST_ALL	Holds resolution workflow	Hold_ID column was added.
AP_CHECKS_ALL	Payables Payments Data	Some new columns are added to AP_CHECKS_ALL table for maintaining real time synchronization with Oracle Payments and Cash Managements. Some existing columns from the same tables have been made obsolete.
AP_HOLDS_ALL	Holds Resolution Workflow	New Columns Added were: Hold_id and wf_status.
AP_HOLD_CODES	Holds Resolution Workflow	New Columns Added were: hold_instruction, wait_before_notify_days, reminder_days
AP_INV_APRVL_HIST_ALL	Holds Resolution and Invoice Approval Workflow	This will be used to record history for both the Invoice level Approvals and Invoice Line level approvals. New Columns Added were:line_number, hold_id and history_type
AP_APINV_APPROVERS	Invoice Approval Workflow	New Columns Added were:child_process_item_key, child_process_item_type, item_type and item_key.

Obsolete Tables

Table Name	Feature Area	Replaced By
AP_BANK_BRANCHES	Bank/Bank Branches	CE_BANK_BRANCHES_V
AP_BANK_ACCOUNTS_ALL	Bank Accounts including Internal and External	CE_BANK_USES_OU_V/IBY_EXT_BANK_ACCOUNTS_V
AP_BANK_ACCOUNTS_USES_ALL	Remit to Bank Account Uses
AP_CHECK_STOCKS_ALL	Payments Documents	CE_PAYMENT_DOCUMENTS
AP_CHECK_FORMATS	Payments Format
AP_TAX_RECVRY_RULES_ALL	EBusiness Tax	Replaced by relevant EBTax tables/views.
AP_TAX_RECVRY_RATES_ALL	EBusiness Tax	Replaced by relevant EBTax tables/views.
AP_CHRG_ALLOCATIONS_ALL	Invoice Lines - Allocations	This feature is replaced by distributions itself, distributions itself represent the allocation of charges.
AP_TAX_DERIVATIONS	EBusiness Tax	Replaced by relevant EBTax tables/views.
AP_LINE_APRVL_HIST_ALL	Invoice Approval Workflow	AP_INV_APRVL_HIST_ALL

New Views

View Name	Feature Area
CE_BANK_BRANCHES_V	Bank/Branches Info
CE_BANK_ACCT_USES_OU_V	Internal Bank Account Uses Info
IBY_EXT_BANK_ACCOUNTS_V	Remit to Bank Account Info
AP_DOCUMENTS_PAYABLE	This view will store interim payables check and payment schedules information. Based on this view Oracle Payments will process data for formatting and building payment. As described in the “Single Payment real-time Flow” diagrams this view will store real time payables data. As a result of this until or unless payment is created, this view will not contain any data for quick payments.
AP_INVOICE_LINES_V	Invoice Lines project. This is the base view for the Lines block on invoice workbench.
AP_PO_CORRECTIONS_V	PO Corrections.
AP_MATCH_CORRECTION_DISTS_V	Distribution level PO/RCV Corrections.
AP_RECEIPT_CORRECTIONS_V	Receipt Corrections.
AP_ALLOCATION_RULES_V	Invoice Lines - Allocations.

Changed Views

View Name	Feature Area
AP_INVOICES_V	All the columns that were added to the base table due to the various projects were added to this view too.
AP_INVOICE_DISTRIBUTIONS_V	All the columns that were added to the base table due to the various projects were added to this view too.
PO_LINE_LOCATIONS_AP_V	PO Matching
AP_PO_DISTRIBUTIONS_AP2_V	PO Matching at distribution level.
PO_AP_RECEIPT_MATCH_V	Receipt Matching view
AP_APPLY_PREPAYS_V	Invoice Lines – Prepayment Application
AP_UNAPPLY_PREPAYS_V	Invoice Lines – Prepayment Application
AP_WF_APPROVAL_HISTORY_V	Invoice Approval Workflow

Obsolete Views

View Name	Feature Area
AP_BANK_ACCOUNTS	Internal/External Bank Accounts Multi-Org View
AP_BANK_ACCOUNT_USES	External Bank Account Uses Multi-Org View
AP_BANK_ACCOUNT_USES_V	External Bank Accounts Uses Reference View

New TablesTCA Changes for Suppliers

The following are the new tables added in Release 12 as a part of this initiative.

Refer to the Oracle E-Business Suite Electronic Technical Reference Manual for the table and column descriptions..

· AP_SUPPLIERS

· AP_SUPPLIER_SITES_ALL

· AP_SUPPLIER_CONTACTS

· AP_SUPPLIER_INT_REJECTIONS

New Views

The following are the new views added in Release 12 as a part of this initiative.

These are backwards compatible views that join the Suppliers table in Payables and the TCA tables,

so that any teams using the old suppliers tables have no impact.

· PO_VENDORS

· PO_VENDOR_SITES_ALL

· PO_VENDOR_CONTACTS

The following tables are obsoleted:

· PO_VENDORS

· PO_VENDOR_SITES_ALL

· PO_VENDOR_CONTACTS