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What’s the difference between perpetual accrual and period end accrual

Posted on July 16th, 2012 by Sanjit Anand ||Email This Post Email This Post

For perpetual, or on receipt accrual accounting, a receiving transaction automatically creates a receipt accrual journal entry debiting receipt inventory and crediting uninvoiced receipts. After delivery of a receipt to its final destination, the receipt inventory account is cleared and a material account is debited.

For period end accrual, no accounting is created at either material receipt or at delivery to a final destination.

Take a note, Period end accrual applies only to expense items, as inventory items are alwaysaccrued on receipt.

If you use perpetual accrual accounting, you do not need to run the Create Uninvoiced Receipts Accruals process.

For period end accrual accounting, if an invoice for the receipt is not entered by period end, the Create Uninvoiced Receipt Accruals process generates an accrual and transfers the accounting to the general ledger. The reversing journal is created with an incomplete status. You must run Create Accrual Reversal Accounting to change the journal status to Complete and transfer it to the general ledger.

For perpetual accruals, the invoice accounting debits the accrual account and credits the liability account.

For period end accruals, the invoice accounting debits the expense account and credits the liability account.

Why Are These Accrual Processes so Important?

  • Valuable integration control
  • Monitors accuracy of receiving and payables processes
  • Provides a vital barometer over these activities
  • Helps to ensure accurate inventory counts
  • Ultimately affects your profits

Posted in Oracle Payable, Oracle Purchasing | No Comments »

Oracle Service Procurement

Posted on April 11th, 2012 by Sanjit Anand ||Email This Post Email This Post

Oracle Service Procurement simplifies contract management and provides a centralized repository for entitlement information.

Rapidly create, manage, and update service contracts, warranties, and extended warranties on sales of goods or services. Then provide service based on real-time entitlement data. As a result, you minimize contract leakage, increase recurring revenues, and provide targeted services while reducing operational costs.

  • Automate Contract Creation
  • Automatically create and update warranties that are included in bills of materials
  • Create Unique and Complex Contracts Quickly.
  • Leverage templates for default coverage terms and other contractual attributes. Ensure contracts or groups of contracts pass pre-defined validation with built-in QA feature.
  • Integrate with Oracle Advanced Pricing.
  • Retrieve accurate prices of services or usage. Apply volume discounts.
  • Create Real-time Repository of Entitlement Information.
  • Ensure service levels while preventing contract leakage by creating a single database of entitlement information that can be shared across your service organization.
  • Manage Renewals Proactively.
  • Automatically inform customers and/or agents of pending contract expiration

Service Procurement need a separate license

iProcurement and Oracle Purchasing are both mandatory for Services Procurement

Beacuse Oracle Services Procurement Integration require Oracle iProcurement which plays a major role in Oracle Services Procurement when requisitioning temporary labor. Oracle iProcurement can also be fully utilized in requisitioning services through Oracle Services Procurement.

If you have licensed and implemented Oracle Services Procurement, then there is additional setup that you can perform in Oracle iProcurement to requisition services and temporary labor.


You can check Oracle Data sheet for Oracle Service Procurement

Posted in Oracle Purchasing | No Comments »

Introduction to Oracle Procurement Contracts

Posted on February 11th, 2012 by Sanjit Anand ||Email This Post Email This Post

Oracle Procurement Contracts – creates and enforces better purchasing contracts throughout the enterprise while functioning as a key component of Oracle Advanced Procurement, the integrated suite that dramatically cuts all supply management costs

Procurement contracts play a critical role in all businesses. Companies rely on procurement contracts to define:

  • Specific products or services that they buy.
  • Contract terms governing their price, shipment, payment, quality, and other mutual obligations of the involved parties.

As we Know , Oracle Procurement supports the basic business processes of the procurement contract life cycle, whereas Oracle Procurement Contracts enhances the ability of buying organizations to manage these stages by adding sophisticated contract management and compliance features to Oracle Purchasing, Oracle Sourcing, and Oracle iSupplier Portal.

The Process Flow

The following overview diagram illustrates the Oracle Procurement Contracts features that support the various stages of the procurement contract life cycle

Oracle Procurement Contract

Key Features

Oracle Procurement Contracts supports all the stages of a complete contract life cycle. The key stages of the contract life cycle are:



  • Establish Contract Standards : You establish company-wide standards to manage your contracts by incorporating best practices that ensure all contracts are authored and executed based on approved legal and business policies and procedures.
  • Author Contracts : When you author contract terms, you leverage standard clauses, templates, and business rules set up in the library to define contractual obligations driven by legal and business requirements.
  • Negotiate Contracts : In this phase i.e during negotiation,
    • you create sourcing documents, such as RFIs or RFQs, with draft contract terms.
    • Suppliers review, respond, and may suggest changes to the contractual terms.
    • After all parties have reached agreement, and all sourcing documents have been submitted, an award is made.
    • You track and archive all interactions with the prospective sellers for retrieval in case of disputes.
  • Approve and Sign Contracts :Next step is Approval .
    • For the contract approval and signature process, you specify and communicate the guidelines to the concerned individuals in your organization, and you authorize who can sign the contracts in your organization
  • Execute and Monitor Contracts :As you execute the contracts, you capture transactional data to enforce the agreed upon contract terms.
    • The contracts are monitored to ensure that the contractual obligations, as defined in the contract terms, are fulfilled. Alerting and escalation mechanisms are defined and adhered to.
  • Administer Changes :You define a formal contract change request process for your organization and the supplier community.
    • Take a note , Amendments to contract terms are routed to designated individuals for approval. You keep track of the changes for audit trail purposes.
  • Renegotiate and Close Out Contracts :After all contractual obligations have been fulfilled or the contract has expired,
    • you can renegotiate the contract to obtain optimal market pricing, or you can decide to close out the contract.
  • Search Contracts : The Enterprise Contracts Search feature enables you to search for keywords and text in structured data (such as contract terms) and unstructured data (such as text contained in attached documents).
    • The search is performed for Oracle Purchasing, Oracle Sourcing, and Repository Contracts.

To support the Contract Lifecycle, Procurement Contracts has following key components:

  • Contract Terms Library
  • Contract Terms maintenance and approval
  • Deliverables
  • Contract Expert
  • Contracts Repository

Is Procurement Contract a separate module

Yes, This is seprate Module and Implementaion required some additional products

For all the features to function properly, Oracle Procurement Contracts requires installation and implementation of the following modules:

  • Oracle Purchasing: PO Module provides the backbone to author, approve, amend, communicate, and print contracts.
  • Oracle Contracts: This module provides contract terms library, contract document attachment, and contract terms authoring capabilities.
  • Oracle General Ledger: Basic setup for accounting come from here and enables set up of ledgers and books.
  • Oracle Human Resources: HRMS provides organization setup information.
  • Oracle Workflow: This Module Provides notifications related to approvals of clauses, templates, and contracts.
  • Oracle XML Publisher: Provides information on setting up and using RTF and PDF templates that are used to preview and print contracts and contract templates.

The following conditional dependencies provide additional functionality but are not required for Oracle Procurement Contracts to function:

  • Oracle Sourcing: Provides complete contract terms negotiation capabilities.
  • Oracle iSupplier Portal: Allows suppliers to view contract terms and request changes.
  • Oracle E-Record: Provides electronic signature capabilities to Oracle Procurement Contracts.

In Summary:
Procurement Contracts is a powerful tool that allows you to automate your Contract Management process and seamlessly integrate it with your Procurement process.


Standardise your process

  • Enforce policies
  • Eliminate sub-optimal contracts
  • Reduce exposure to unnecessary risk

Streamline your processes

  • Simplify contract creation
  • Streamline approvals
  • Streamline management of contracts

Allow your users to Comply with Flexibility

  • Visibility into contracts for key stakeholders
  • Enforce contract pricing and terms
  • Track internal and external compliance


  • All your information is in a single repository
  • Management reporting
  • Operational reporting

Posted in Oracle Purchasing | No Comments »

PO Module Inter-dependency

Posted on August 29th, 2011 by Sanjit Anand ||Email This Post Email This Post

This post is to discuss the integration of various modules of e-Business Suite from an PO perspective. It should give an idea to consultants who wish to determine dependencies and to understand how the different modules communicate data between each others.

dgreybarrow With Account Payable

  • Matching need PO number to match Invoices
  • PO Distribution Details Default to Invoice Lines
  • Projects and Assets Information default to Invoice Line Distribution depending on PO Match
  • AP Invoice Holds depend on PO Tolerance limits and Paid When Holds are released and Tolerance level met

dgreybarrowWith Inventory

  • Items Setup in Inventory are Used in a PO
  • Item Attributes Assigned define behavior of Items on a PO
  • Categories Defined and assigned to Items are defaulted to Items Ordered in a PO

dgreybarrowWith Projects Dependency

  • Projects setup in Project Accounting can be selected at the PO Distribution level
  • Type of Project Determines the Project default
  • Accounting derived based on Defaults for Projects
  • Project status affects the use of specific project on a PO

dgreybarrowWith Fixed Assets

  • Items classified with Asset Category used on a PO derive the classification of Item on a PO line
  • PO Defaults are interfaced to Assets via APModule
  • Asset Category & Asset Clearing Account is interfaced to Assets from PO
  • Important to select Appropriate Account on PO, before the PO Line can interface to Assets via Mass Additions
  • Supplier information defaults to Assets from PO
  • Employee and Manufacturer information interfaced from PO to Assets

dgreybarrowWith GL

  • All Account details defined on Items, Projects or Item Categories determine the account on a PO Shipment’s Distribution
  • Employee Default account information determines the account on a PO Distribution for Expense related PO/Requisition
  • Default account selected on a Requisition derives the account on a PO Distribution
  • SLA Definition derives the account upon GL Transfer

dgreybarrowWith Order Manager

  • Items defined as Outside Processing (OSP) are defaulted on a Internal Sales Order, which then converts it into a Internal Requisition and a PO
  • Drop-shipment functionality affects PO Item behavior

dgreybarrow With HRMS

The purchasing module uses the HR employee database for the following purposes:

  • Designate employees as buyers
  • To assign documents (purchase orders, requisitions, etc.) against them when these documents are created.

The module can use either the supervisory or the position hierarchy for routing approvals

Posted in Oracle Purchasing | No Comments »

Oracle Supplier Hub Insights

Posted on December 29th, 2010 by Sanjit Anand ||Email This Post Email This Post

Oracle Supplier Data Hub is part of a full suite of Master Data Management (MDM) tools unifies and shares critical information about an organization’s supply base. It does this by enabling customers to centralize all supplier information from heterogeneous systems and thus creates a single view of supplier information that can be leveraged across all functional departments.

dgreybarrow Oracle Supplier Hub feature :

Oracle Supplier Hub can be broadly categorize into five major coverage area as per fig 1.

Oracle Supplier Hub

  1. Consolidate – Data Import Management, Source System , Cross Reference
  2. Cleanse – Matching, D & B Data Enrichment
    • Various Functionality Coverage are
      • Supplier Registration DQM and D&B
      • Supplier attribute classification
      • Merge, validate duplicates. Similar supplier names are checked.
    • Integrated with D&B out of box. Import data in real-time or batch mode
  3. Master – Supplier Classification & Relationship
  4. Share – Publication and Synchronization, Web Services, Security. This is also called as called OSN Integration.
  5. Govern -Classification Management, Hierarchy Management and Task Management

Typically data administrator functionalities are available from Supplier Data Librarian Super User application responsibility where the data librarian functionalities are available from Supplier Data Librarian application responsibility.

Take a note profile option POS:SM: Supplier Data Hub Configuration with a value Standalone at site level if you are deploying Supplier Hub as a centralized standalone MDM solution OR configure the profile option with a value Integrated EBS if you are deploying Supplier Hub as an Add-on for E-Business Suite to an existing EBS R12.1 application Installation after you purchase the application licenses.

dgreybarrow From R12.1.2 to R12.1.3

Oracle Supplier Hub was first added in EBS in R12.1.2. With recent version 12.1.3, there is slight enhancements as below:

  • Tasks and Notes , Contact points and Party Relationship
  • Bulk Import & Spreadsheet Import
  • Smart Search , Enable party as supplier , Supplier Creation De-duplication
  • Supplier Data Publications and supplier Profile Report

dgreybarrow Supplier Hub and TCA

Oracle Supplier Hub is built on top of Oracle Trading Community Architecture (TCA) of Oracle E-Business suite and leverage TCA implementations features like Data Quality, Batch Management, Source System Management, Adapters, Classifications, Relationships/Hierarchies, Tasks/Notes (available via Customer Data Hub (CDH)).

If you refer back to TCA and CDH documentations for the various profile options and implementations that are applicable at the party level for the functionalities exposed from Supplier Hub navigations.

You can take advantage of TCA DQM APIs to identify the potential duplicate Supplier parties in Supplier Master.

Customers can implement and use Supplier Lifecycle Management (SLM) to streamline the supplier relationship management processes through the trading lifecycle.

dgreybarrow License Requirement

Supplier HUB Data requires a separate license. Those who already using isupplier can requires a separate license

It is a new module introduced in Oracle Applications release 12.1.2, and it allows integration with other systems besides Oracle Applications.

Option 1: Oracle Supplier Life cycle Management can be deployed on an existing E-Business suite R12.1 application instance.
Oracle Supplier Hub Add-on for E-Business Suite which has the same features that of Oracle Supplier Hub can be deployed on an existing E-Business suite R12.1 application instance.

Option 2: Customers who want to deploy a standalone Supplier master data management system can implement Oracle Supplier Hub using Oracle E-Business suite R12.1 platform. They can implement Oracle Supplier Life cycle Management along with Oracle Supplier Hub or as a standalone E-Business Suite application like any other E-Business Suite application in a new instance.

Posted in Oracle Purchasing, R12 | No Comments »

Supplier Management Overview & EBS

Posted on December 27th, 2010 by Sanjit Anand ||Email This Post Email This Post

If your company or Customer have a multi-supplier environment, then managing Supplier is always be a challenge. In that case if you are using EBS R12.1.2 or higher version then you use solution from Oracle that helps you to manage and track supplier data a bit more easier way. The Oracle Supplier Hub and Oracle Supplier Lifecycle Management applications are designed to keep a record of all your suppliers and also model (TCA way) and track suppliers through processes that are built-in.

Oracle Supplier Hub(SDH) application helps maintain supplier information. Supplier data from various sources can be Extracted ,cleaned up and loaded in this application ( and Published too). The data can also be merged with data from third party sources such as D & B. Each supplier’s quantity metrics like quality, on-time delivery, and qualitative metrics in terms of supplier performance, quality and reliability can all be stored here. Oracle Supplier Hub is a stand-alone data management application and have the great capability to integrate with legacy applications.

Other Oracle Supplier Lifecycle Management(SLM) application supports on boarding, performance evaluation(Qualification and On-boarding ), and governance of suppliers based on risk” by mean of web-based application allows supplier registration. Ongoing performance is documented through template questionnaires and a centralized record of suppliers by risk, compliance and adherence to local laws, regulations, etc. are all stored in this application.

Putting together, these two applications really have great potential to make supply chain management section easier.

dgreybarrow Reference:

Posted in Oracle Purchasing | No Comments »

Pricing in Purchasing

Posted on August 18th, 2010 by Sanjit Anand ||Email This Post Email This Post

The Procure To Pay cycle (PTP) of any industry includes following some basics steps:

  • Requisition is raised by any department of the plant. Or any automatic process (MPR, Min-Max Planning)
  • The Purchasing Dept. employee (buyer) creates the PO based on the Requisition and previous price information when this exists, otherwise, buyer creates Request for Quotation (RFQ) from different suppliers, based on the Requisition.
  • The Quotations are sent by suppliers in response to the RFQ.
  • The buyer will analyze various Quotations and place the PO on a supplier, based on analysis
  • The Supplier receives the PO and the notification if he has iSupplier Portal implemented .He then supplies the goods on PO lines or sends an ASN.
  • The receiver receives the goods.
  • The invoices are raised and payment is made to the Supplier.

Oracle Purchasing support the pricing using the following structure

PO Pricing


Oracle’s standard features include:

  • Creation of Purchase Requisitions
  • Recovery Pricing information from ASL setup
  • Recovery buyer information from Organization Items Setup
  • Creation of PO and receipt against a PO shipment

Posted in Oracle Purchasing | No Comments »

Oracle Sourcing -Differences between Oracle 11i and R12

Posted on March 7th, 2010 by Sanjit Anand ||Email This Post Email This Post

  • Oracle Purchasing Release 12.0 speeds up daily purchasing tasks with an enhanced Professional Buyer s Work Center. Based on the latest web-based user interface models the Work Center is a central Launch Pad from which buyers can efficiently perform their daily tasks:
    1. View and Act upon Requisition Demand
    2. Create and Manage Orders and Agreements
    3. Run Negotiation Events including Auctions and RFxs (requires Oracle Sourcing)
    4. Manage Supplier Information
  • In Release 11i generation of purchasing documents in Adobe PDF format required organizations to create layout templates in the form of XSL-FO style sheets. With Release 12.0 organizations can also use RTF or PDF layout templates which require little training to configure and maintain.
  • Oracle Purchasing supports various types of file attachments (MS Word Excel PDF etc.) that can be appended to purchasing documents in addition to long and short text attachments. In previous releases only text attachments were communicated to suppliers. With Release 12.0 buyers can communicate all necessary attachments to suppliers including file attachments via email.
  • Release 12.0 allows finer control of how blanket agreements are enabled for automatic document sourcing. Buyers can now choose to enable them only in specific inventory organizations. Thus buyers can negotiate a blanket agreement to fulfill requisition demand for a subset of inventory organizations and enable the agreement for autosourcing only in those inventory organizations.

Posted in Oracle Purchasing | No Comments »

Oracle Sourcing

Posted on March 6th, 2010 by Sanjit Anand ||Email This Post Email This Post

Oracle Sourcing is the yet another enterprise application that improves the effectiveness and efficiency of strategic sourcing. This application is a key component of Oracle Advanced Procurement, which dramatically cuts all supply management costs. Oracle sourcing enables buyers to source more of the organizations spend at lower total cost. Oracle Sourcing application creates immediate savings through rapid deployment, and ensures long-term savings with consistent execution and compliance.

With Oracle Sourcing you can:

  • Manage more sourcing events in less time and bring them to conclusion faster, so you can exploit additional savings opportunities
  • Make more best-value award decisions based on total cost, not just on unit price
  • Create immediate savings and faster ROI with rapid deployment; then gain additional savings with consistent execution through the Oracle Advanced Procurement suite

There are three typical business flows that utilize Oracle Sourcing.

  1. Create New Documents Using Demand Workbench
  2. Create New Documents from Existing Blanket PO Agreements
  3. Create Documents Directly in Oracle Sourcing

Details are herewith:

1.Sourcing buyers can use the Demand Workbench feature of Oracle Purchasing to select approved requisition lines and aggregate demand into a draft auction or a Sourcing RFQ. Buyers can use the Demand Workbench without leaving Oracle Sourcing. The backing requisition line information is retained throughout the life cycle of the sourcing document.

Oracle Sourcing

2. Oracle purchasing buyers can select a blanket purchase agreement (BPA) and use it as the basis of a new auction or Sourcing RFQ. The details of the BPA (including header, attachments, price breaks) are copied to the draft negotiation, and the sourcing lines refer to the originating BPA lines.

Oracle sourcing2

3. Oracle Sourcing buyers can define sourcing documents directly in Oracle Sourcing. Inventory items can be selected and goods and services can be entered directly. A large number of items can be quickly entered by using the spreadsheet upload feature.

oracle sourcing3

Therefore, buyers have visibility to information throughout the complete procurement process. Oracle purchasing users can view the awards that initiated the standard purchase order or blanket purchase agreement.

Hope this helps.

Posted in Oracle Purchasing | No Comments »

Oracle Transportation Management(OTM) integration with Oracle Purchasing

Posted on August 18th, 2009 by Sanjit Anand ||Email This Post Email This Post

OTM-PO Integration enable you to manage inbound freight from your suppliers.

The integration of Oracle Transportation Management enables you to plan and track the progress and status of inbound purchase order-related shipments.

Purchase orders created in Oracle Purchasing are communicated to Oracle Transportation Management after approval, enabling you to execute (rate, route, track, and reconcile) the related shipment.

Purchase order changes are also communicated to Oracle Transportation Management upon re-approval in Oracle Purchasing.

As part of the shipment process, Oracle Transportation Management enables suppliers to submit “ready to ship” information.

After shipping takes place, purchasing agents access carrier-provided shipment status updates within OTM. After goods are delivered, invoices for freight payment are collected and processed for payment.

This figure shows the integration of Oracle Transportation Management with Oracle Purchasing, including PO creation and PO close:

Oracle Transport Managment

This get called soon after a Standard Purchase Order or a Blanket Purchase Release is approved, the Approval process(POXDOCON) or the Create Release process (porelgeb.pls) will call PO_DELREC_PVT.create_update_delrec.

  • PO_DELREC_PVT.create_update_delrec then calls
  • PO_OTM_INTEGRATION_PVT.handle_doc_update
  • PO_OTM_INTEGRATION_PVT.handle_doc_update then calls
  • PO_BUSINESSEVENT_PVT.raise_event

Posted in Integration, Oracle Purchasing | No Comments »

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