Oracle iProcurement Overview

Features and Overview of iProcurement

• Web based applications allows organization to perform purchase activities 
• It’s a self-service application module which enables buyers raise and work on requisitions and corresponding tracking 
• Web based shopping interface for goods and services including requisitions for temporary rate based labor 
• Complete Catalog and Contents management 
• Online Approvals management 
• Streamlined order placement in integration with Purchasing 
• Streamlined with Sourcing to complete the RFQ negotiation cycle 
• Complete Order Tracking

Procurement Process in iProcurement

• Process 

• Enter Requisition online using catalog form 
• Workflow Approval 
• Buyer Creates Purchase Order 
• Supplier Notified and delivers directly to requestor 
• Record Receipt in iProcurement 

• iProcurement Process Flow in Oracle 
• Ordering 
• Requisition 
• PO 
• Receiving 
• Analysis 
• Payment 
• Supplier Performance 
• Sourcing 
• Supplier Management 
• Negotiations & Awards 
• Catalog Content Management 

Why switching to iProcurement

Issues in conventional procurement systems are

• Lack of procurement information 
• Minimal coordination of common purchases across organizations 
• Scarcity of formal contracts(Only available are BPA and CPA) 
• Large complexity like more people involved 
• Lack of standardized process or systems 

Benefits of iProcurement

• It provides an intuitive web interface 
• Goods and services can be found easily and added to the cart like any other online shopping portals 
• Streamlines Order Placement – Shopping 
• Shopping List 
• Multiple Shopping Cart 
• Copy orders 
• Service Requests 
• Non Catalog Requests 
• Automatic Document creation 
• Centralized Purchasing 
• Streamlined Order Placement – Delivery 
• Inventory Replenishment Requests 
• Streamlined Order Placement – Billing 
• Procurement Card purchases for Catalog orders 
• Oracle project integration 
• Multiple Account Distributions and Account generation workflow integration 
• Streamlined Order Placement 
• Notes – Additional Item information, Upload & view attachments 
• Approvals – Approval routing configuration and Vacation scheduling 
• Review/resubmit and Cancellation 
• Desktop receiving 
• Requestor can receive and confirm receipt of requested goods and services directly in iProcurement 
• iProcurement can automatically record the receipt transaction 
• Streamlines employee ordering 
• Enforce purchasing policies 
• Reduces procuring costs 
• Easy to upload and view additional information 
• Search product internally or from external sources 
• Automatic document creation 
• Center led procurement process 

R12 Enhancements

• New Approval types 
• New user-interface options 
• New option for creating and maintaining favorite lists 
• Unified catalog architecture 
• Better catalog authoring capability for buyers, supplier and catalog administrators 
• Tolerance based change request routing and Approval 
• Content security enhancements 

Integration with other applications

• Oracle Purchasing 
• Oracle Payables 
• Oracle Inventory 
• Oracle Projects 

iProcurement in P2P flow

• Setups 
• Jobs 
• Positions 
• Employees 
• Hierarchies 
• Approval Groups 
• Assignment sets 
• Item categories 
• Buyers 
• Purchasing/Financial/Receiving options 
• DFF for Item Categories 
• Define Information templates 
• Define Realms 
• Setup Attachments 
• Setup Profile options 
• Enable Function Securities 

Item Availability in iProcurement

• Internal Catalog: Items assigned to categories enabled for iProcurement 
• External Catalogs: Managed by supplier/Third Part or Self-managed 

Flow

• Requisition Creation 
• Requisition Approval 
• PO creation and processing 
• Shipment of Goods 
• Receiving of Goods 
• Invoicing 
• Payments

Note: underlined steps can be done in iProcurement, for others EBS integration needed with respective modules

Core features of iProcurement

• Catalog Management 
• Shopping 
• Checkout 
• Requisition Tracking and Management 
• Desktop Receiving

Oracle Order Fulfilment: Back to Back Order

Back to Back(B2B) process is used for items that are not typically stocked nor manufactured. In an environment where lead times are often only a matter of 24 hours, the B2B process improves efficiency of the three steps above, by closely linking the Sales Order and the Purchase Order together.

The B2B process automates the creation of a supply order (PO) when a sales order is booked. The supply order is hard pegged (hard-reservation) to the sales order that it is supplying so that once the PO is received, the items are not inadvertently taken by another order or demand. Where the sales order line is within the process, can be visible at all times so that customer service inquiries can be answered. 

This process is also called Supply to Order.

1. Customer orders items (OM).
2. Purchase those items from the supplier (PO) and receive them into the warehouse.
3. Ship those items to the customer (OM).

Create a B2B Item

Go to Inventory > Items > Master Items and define the item as follows :
Enter item name and description.
From Tools > Copy From, apply the Purchased Item template.

 In the Purchasing tab, enter a value in the List Price field.

 In the General Planning tab, set the Make or Buy flag to Buy

 In the Work in Process tab, make sure the Build in WIP flag is checked

  In the Order Management tab, check the Assemble to Order flag (ATO).

Save, and assign to Organization M1

B2B item must be created at item validation org.
Same item in same item validation org cannot be both stock item and a B2B item

Define Sourcing rule for the item

Sourcing rules can be set up in PO to default sourcing information such as the supplier from which the item is purchased.

Assign the item to the price list

Back to Back Order Flow

Create Order

Go to OM > Orders, Returns > Sales Orders.

Create a sales order with Order Type Mixed and enter the B2B item created in previous step in the lines for any quantity.
Book the order. Note down the Order Number

 The line status will move to Supply Eligible (flow_status_code SUPPLY_ELIGIBLE).

Place cursor on the line and go to Actions > Progress Order > Select Create Supply Order – Eligible to progress the workflow of the line 

 

The line status will now show PO-ReqRequested/External Requisition Requested (flow_status_code PO_REQ_REQUESTED).

OM has inserted a record in the PO requisitions interface table.

Go to Purchasing > Reports > Run and run the concurrent program Requisition Import with the Import Source parameter = CTO. Leave the other parameters as default. The concurrent program can also be run from OM > Orders, Returns > Requisition Import.
Go to View > Requests and verify that the Requisition Import has completed successfully.

The line status of the sales order line will now show PO-ReqCreated/External Requisition Open (flow_status_code PO_REQ_CREATED)

From the sales order line, go to Tools > Scheduling > Reservation Details > ‘Supply’ tab. Verify that the order line is reserved against the requisition. Note down the requisition number seen in this window.

Go to Purchasing > Requisitions > Requisition Summary.

In the Find Requisitions window, enter requisition number found in the previous step and click on Find.
Verify that the status is Approved

Go to Purchasing > Autocreate.
From Edit > Clear > Record, clear any query criteria that may be defaulted like buyer, requester etc.
Enter requisition number and click Find.

  

Check the checkbox to the left of the line, and click on Automatic. Enter the Supplier and Supplier site such as the following and click on Create

 Once the PO created, enter the supplier and site details and once everything is OK, approve the PO

The line status of the sales order line will now show PO-Created/PO Open (flow_status_code PO_CREATED)

From the sales order line, go to Tools > Scheduling > Reservation Details > ‘Supply’ tab. Verify that the order line is reserved against the PO

Go to Purchasing > Receiving > Receipts.

Enter Purchase Order number and click on Find.
In the Receipts window, check the checkbox to the left of the line and enter and save the receipt

Go to Purchasing > Receiving > Receiving Transactions Summary.

Enter the Purchase Order number and click on Find.
Click on the Transactions button.
Verify a Receive and Delivery transaction. This means that the B2B item has been received into Inventory.

The line status of the sales order line will now show Awaiting Shipping (flow_status_code = AWAITING_SHIPPING).

On the sales order line, Tools > Scheduling > Reservation Details will now show that the item is reserved against Inventory in Subinventory = FGI (PO has been received in this subinventory).

The line can now be pick released, shipped and invoiced to the customer.

This completes the Back to Back Order workflow.

Useful queries

Once you progress the order after Supply Eligible step, use below query to find whether the data inserted to requisition interface or not

select * from po_requisitions_interface_all
where interface_source_line_id = &order_line_id
and interface_source_code = ‘CTO’;

Sourcing Rule in Oracle Purchasing

Sourcing rule is used to automatically replenish materials in an organization or business.
Sourcing rules determine the movement of materials between organizations in a global enterprise; these organizations include the suppliers and the materials include those items made at the manufacturing organizations.

Profile Options

• MRP:Default Sourcing Assignment Set (set the value of the assignment set where you have added your item) 
• PO: Automatic Document Sourcing (Yes) 
• PO: Allow Auto-generate Sourcing Rules (CREATE AND UPDATE) 
• PO: Allow Autocreation of Oracle Sourcing Documents (Yes)
• MSC: ATP Allocation Method (User-Defined Allocation Percentage)

Define an Item

Noted Attributes:

• Select any Inventory Planning method
• Select the item Make or Buy
• Enter a List price
• Enter a default Buyer (this will help to assign a buyer during planning and in the requisition) 

Define Supplier and Supplier Sites

You can define supplier and supplier sites as required

Purchasing –> Supply Base –> Suppliers

Defining Sourcing Rule

Purchasing -> Supply Base -> Sourcing Rule

Notes:

• You can use this rule across all orgs by Selecting All Orgs
• If you want to use in specific org, the select the Org

Shipping organization type is 3 types

• Buy From: Buying from a supplier
• Transfer From: If you want to transfer the item from another organization in your business
• Make At: This is for making the item in the selected organization

Allocation percentage: This is to identify how much % of the amount will be sourced from which org. This is helpful when you want to maintain multiple sources and want to split the sourcing amount between different sources, so you can split that by allocation%.
Master Scheduling/MRP uses these allocation percentages when creating planned orders, which Purchasing imports as requisitions through Requisition Import. In a group of requisitions imported from Master Scheduling/MRP, those requisitions show the percentage allocation you define. In other words, at the end of a planning period, orders–as a group–to those suppliers approximately equal the percentage split you defined. However, when you create a requisition in Purchasing, Purchasing sources to the supplier with the highest allocated percentage. The Approved Supplier List (ASL) entry for that supplier is then referenced in order to pick up source document information (from a blanket purchase agreement or catalog quotation), if source documents exist

Allocation Rank: To select the sequence in which sources will be identified during planning

Sourcing Rule Assign set, add the item for the sourcing rule

Once sourcing rules are defined, now time to assign the rule to Item or organization as you need

Purchasing à Supply Base à Assign Sourcing Rules

Here you can assign the sourcing rules at 4 different levels

• Item 
• Item-Organization
• Organization
• Global

Add the supplier to Approved Supplied List

This is optional, if you have checked ASL in Item attribute

Purchasing à Supply Base à Approved Supplier List

Run Min Max planning for the item

Inventory à Planning à Min-Max Planning

Submit the request for the item and make sure restock parameter selected as Yes

Then run requisition Import

This will create the Purchase Requisition and in turn submit the Create Releases Program which will in turn create the Purchase Order

Internal Requisition to Internal Sales Order

Creation Of Item

Create an Item and assign that to both the source and destination organization

Attributes

• Purchased
• Purchasable
• Internal Order Enabled
• Shippable
• OE transactable

Creation of Internal Requisition

Now go ahead and create and Internal Requisition

Go to Purchasing Responsibility

Requisitions -> Requisitions

Note: You should have been defined as an employee/ buyer to create a requisition

1. Type should be Internal Requisition
2. Enter the item in Lines Tab
3. Enter Quantity
4. Enter Need By Date
5. Select the Destination Organization
6. Destination Location
7. Select Source Organization

Click on Save, It will generate the Requisition Number. Note down the requisition number
Now need to Approve the Requisition
If you want to approve this requisition, then you should have required approval authority.
Lets do the required setup
Go to Human Resources (if Installed) responsibility
People -> Enter and Maintain

else in purchasing
Go to Setup -> Personnel -> Employees
Find the employee (if not created already, select new and create one)

Select Assignment

Here assign a Job

Now lets go and check whether this Job has Requisition Approval authority or not

For this, navigate to Purchasing responsibility

Setup -> Approvals ->Approval Assignments

In this form, select the Job which you have assigned to the employee

Now you can see which all document types are authorized to approve

Make sure Approve Internal Requisitions is entered here

If you can’t see this, then add the value

Make sure the Approval Group which you are assigning here that has the approval limit authorization with in which your IR amount comes

As in this case

Here the limit is max $50,000 and our IR amount is only $100

Now Go back to the requisition and approve the same

Query the requisition and click on the approve button

Make sure Submit for Approval selected (it should be by default) then click on OK

Wait for few min as the background process will check and clear the Approval workflow

And re-query the IR again

If Workflow Background Process not scheduled, you can go ahead and manually submit

Now again requery the IR from requisition summary form

You will see the IR is approved

Creation of Internal Order

Next step is to Run the Create Internal Order concurrent program which will interface the data to Order management for creating internal order

Go to View -> Requests -> Submit a new request -> Single Request

Select Create Internal Orders and submit

Once the program is completed, check the log file,

It means the data transferred to Order Entry

Now lets go to Order Management and import the data to create the Internal Order

Navigate to Order Management responsibility

Go to Orders, Returns -> Import Orders -> Order Import Requests

Now enter the below parameters

1. Source as Internal
2. Select your IR number in Order Reference field

Then Click Ok and Submit.

This will spawn another child order import program

Now go ahead and query your Internal order which is just created by importing the data in order organizer form

Orders, Returns -> Order Organizer

Give today’s date to refine

Select the source as Internal and give the IR number in the Order Source Reference

Now Click on Open.

Your internal order is ready