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Procurement/Purchase – Requisition take a look

Posted on June 15th, 2007 by Sanjit Anand ||Email This Post Email This Post

Procurement/purchasing is basically buying of goods and services, based on internal requirements, which will be used as input for the processing of the end product for a given company.
The input varies from simple stationery or MRO requirement (termed as indirect goods, as they are not directly involved in production processing) to raw materials (termed as direct, as they are used for production processing) and services.

How many types of Requisition in PO module we have?

There are two different kind of Requisition

  • Internal Requisition
  • Purchase requisition

handWhat is an Internal Requisition?

A requisition from the Purchasing system that will directly result in the generation of a sales order in the Order Management system through the Order Import process in Order Management.

Why do we use internal requisition/internal sales order?
Internal Requisition/Internal Sales Order provide the mechanism for requesting and transferring material from one inventory organization to other inventory organization or expense location.

What is the location in Oracle Purchasing?
Oracle Purchasing uses locations to identify the final delivery location for both inventory and vendor sourced requisition. It is using the hr_locations table.

What is an Internal customer?
When using Internal Requisition/Internal Sales Orders, it is required to create an internal customer for each destination organization and a customer ship-to site for each deliver-to location within the destination organization. Define the same address for your customer ship-to-site as your deliver-to location.

handThen what is Purchase Requisition?

The Purchase Requisition is the procedural method by which different departments of organization may request the purchase of goods and/or services, which require processing by Procurement Department.

handWhat is life Cycle of Purchase Requisition?
If you are using i-procurement this consist of 4 distinct sub-processes like:
iproc flow

A Requisition is generated either manually or by system, which is ultimately turned into a purchase order by the buyer. Sometimes the buyer decides a request for quotation (RFQ) is required by other suppliers to determine the best price for the goods or services requested. Once the quote is back, that information is used to finalize the purchase order.

handWhat is flow of Requisition?
A functional flow of Requisition cycle can be represented as

handWhat are the important Tables for Requisition?
These are the main tables:

PO_Requisition_Headers_All : it stores information about requisition headers. Each row contains the requisition number and Addition relevant information. REQUISTION_HEADER_ID is primary key.

HR_Employees : it’s a view that contains information about employees. You must have a row for each requestor, requisition preparer, approver , buyer or receiver . The primary key is EMPLOYEE_ID.

PO_Requisition_Lines_All : This table stores the information about the requisition lines like quantity , item , deliver to location , requestor etc. Primary Key is REQUISTION_LINE_ID

MTL_System_Items_B : This is the definition table for items. This table holds the definitions for inventory items, and purchasing items. The primary key is INVENTORY_ITEM, ORGANIZATION_ID.

PO_REQ_Distributions_All : This table stores the information about the accounting distributions associated with each requisition line. Each requisition line must have at least one accounting distribution. Each row includes the accounting flex field id and requisition line quantity. The primary key is DISTRIBUTION_ID.

GL_CODE_Combinations: This table stores valid Accounting Flex Field segment value combinations for each accounting flex field structure within your GL application. GL_CODE_COMBINATIONS is populated by the system when a new accounting flex field combination is used, either through dynamic insertion or manually.

This can be best represented as per data model as:

Here are the drill down information for these two driving table:

1. PO_Requisition_Headers_All

  • SEGMENT1 – Requisition Number
  • AUTHORIZATION_STATUS – Lookup code and can have values
    • APPROVED Document has been Approved
    • CANCELLED Document has been Cancelled
    • IN PROCESS Document is still undergoing Approval
    • INCOMPLETE Document is not yet Complete
    • PRE-APPROVED Document is Approved but not yet Accepted
    • REJECTED Document as been Rejected
    • REQUIRES REAPPROVAL Requires Reapproval
    • RETURNED Document has been Returned
  • REQUISITION_HEADER_ID Unique Requisition ID (PK)

2. PO_Requisition_Lines_ALL

  • REQUISITION_LINE_ID Requisition line unique identifier
  • REQUISITION_HEADER_ID Requisition header unique identifier
  • LINE_NUM Line number
  • QUANTITY Quantity of Line item
  • LINE_LOCATION_ID Document shipment schedule unique identifier

How we map the Main screen for Requisition with database table.

req screens

Posted in Beginner, Oracle Purchasing | 11 Comments »

PO Matching: 2 ways, 3 ways or 4 ways

Posted on June 5th, 2007 by Sanjit Anand ||Email This Post Email This Post

In the Procure to pay cycle, we all know it start from requisition to payment, thus it is equally important to understand the relation between PO and Invoice, which of course is subject to Matching based on tolerances level set.

How many ways for matching
They are mainly 3 ways:

  • 2-ways
  • 3-ways
  • 4-ways

How to explain

hand2-way matching

This verifies verifies that Purchase order and invoice information match within your tolerances as follows:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered

hand3-way matching

This verifies that the receipt and invoice information match with the quantity tolerances defined:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received

hand4-way matching

This verifies that acceptance documents and invoice information match within the quantity tolerances defined:
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received
Quantity billed <= Quantity accepted

How to relate between PO and invoice tables:

Here are the entity relationship diagram, explaining 2 way and 3 way matching condition.



In summary


Posted in Oracle Payable, Oracle Purchasing | 2 Comments »

Oracle Apps and ASN

Posted on April 14th, 2007 by Sanjit Anand ||Email This Post Email This Post

The ASN aka Advanced Shipment Notice is a document that is sent to a buyer in advance of the buyer receiving the product. It is typically used within the context of an EDI environment. It can be used to list the contents of an expected shipment of goods as well as additional information relating to the shipment, such as order information, product description, physical characteristics, type of packaging, marking carrier information, and configuration of goods within the transportation equipment. In the implementation of the transaction the latest the ship notice may be sent is the time of shipment. In practice the ship notices just arrive before the shipment.

dgreybarrow Basic Business Needs

  • To receive a Shipping notice in Advance:
  • Provide user the ability to electronically receive supplier ship notice into Purchasing by loading an ASN electronically into Oracle Apps using the Receiving Open Interface.

dgreybarrow Business Flow

Typical Process with company using Oracle EBS would be similar to this:

  1. Supplier sends ASN.
  2. EDI validates the data for EDI standards and inserts data into Receiving Interface tables.
  3. Receiving Open Interface validates ASN data. If accepted shipment lines are populated.
  4. Supply details are maintained.
  5. Application Advice is generated. The supplier can check if there is a rejection of ASN through the advice.

dgreybarrowInbound Shipment Notice Transaction (856)

If you are using EDI Gateway , make sure you have done setup for Trading partner correctly. These are relevant Oracle Purchasing Profiles and Set-ups

The following is a list of the Purchasing set-ups related to the Receiving Open Interface.

  1. RCV: Fail All ASN Lines if One Line Fails:
    If the profile option is set to ‘Yes’ and any line failed validation, no further validation is performed for the ship notice.
    If the profile option is set to ‘No’ and any line failed validation, the process continues with the next line.
  2. ASN Control:
    In the Receiving Options window in Purchasing, select Warning, Reject, or
    None in the ASN Control field to determine how Purchasing handles the receipt against a purchase order shipment for which a ship notice exists.
  3. PO: Enable SQL Trace for Receiving Processor :
    If the profile option is set to ‘Yes’, more detailed error data is provided in the View Log screen of the Submit Request window when you run the Receiving Transaction Processor.

dgreybarrow Data Flow Diagram

Here is data flow looks typically when you are using with EDI gateway.


Receiving Open Interface tables which got involved in this is:

You can use Import Programs to submit ECEASNI.sql (856) to the Concurrent Manager to populate the Receiving Open Interface tables with data from the inbound interface file.This is applicable if you are using EDI Gateway , else you can directly use Receiving Open Interface (RCVTP) program.

Use Import Programs to submit the Receiving Open Interface (RCVTP) program to the Concurrent Manager to validate the data in the Receiving Open Interface tables.

Hope with this, you can easily implement ASN in EBS. Question, comments are most welcome.

Posted in EDI, Oracle Purchasing | No Comments »

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