Monthly Archives: May 2011

Oracle AME : Approval Management Engine : Questions Answers


Does Oracle HR needs to be fully installed to use AME ?

First, customers using any of the financials products but not Oracle HR also install “Shared HR,” which is a “lite” version of the HR product that includes the common entities that are needed by all applications. These include organizations, locations, jobs, positions, and people. AME will work with Shared HR. Customers do not need to apply the HR Family Pack if they do not install any of the HRMS applications. They will need to set up the people, jobs, or positions that they want to include in their approval rules.

Does AME support parallel approval ? 

In 11.5.10 only serial approval is supported.  Parallel approval is supported in R12.

Can approval rules be defined and leveraged across multiple products ? 

Yes, approval rules can be defined once and be‚ leveraged across multiple products, requiring less maintenance work. Additionally approval rules can be easily extended without having to customize the application or the workflow

How do I enable the Approval Engine for my Requisitions ?

This is done in the Setup Document Type Form in Core Purchasing. The following Approval Transaction Types are seeded and supported:

  • PURCHASE_REQ = Purchase Requisition
  • INTERNAL_REQ = Internal Requisition
  • RCO = Requestor change order

Which Action Types does support and not support with AME integration in 11.5.10

Supported :

  1. Chains of authority based on relative job level generate chains of authority by ascending the HR supervisory hierarchy until they reach a manager having a certain job level. The actions differ according to the job levels they require. Job level is based on supervisor hierarchy.
    (E.g. If Kim is the requester and is at a job level of 1; if the rule states Chains of authority based on relative job level = 3, then the approvers would be whomever had a job level of 4 (that is three levels up from Kim)).
  2. Chains of authority based on absolute job level – generate chains of authority by an job level number. For example, if a Joe has a job level = 3, and Kim chooses the action type Chains of authority based on relative job level 3, then the approval would route to Joe with a Job Level = 3.
  3. Chains of authority based on number of supervisory levels generate chains of authority based only on a supervisor’s position that is ‘n’ levels up from the requesting position.
  4. Chains of authority containing only the final job-level approver generate chains of authority based upon the final approver in the requester’s hierarchy.
  5. Chain of authority includes requestor’s manager and then the final approver generate chains of authority based on only the requester’s manager and then the final approver in the requester’s chain of authority.
  6. Chain of authority includes an approval group
  7. Chain of authority includes two sub-chains, each based on job level

Unsupported:

  1. One job-level chain of authority per line item. An example of this is a Requisition with multiple lines and then requiring AME to find multiple approvers for each of these lines.
  2. The ability to automatically find a required “pre-approver” for any given employee. An example would be like this. “Any requisition that must be approved by the CEO (top level approver), must first be approved by the CFO. However, the CFO is not in the employee supervisor chain for all of the employees submitting requisitions that must go to the CFO (for example the CIO reports directly to the CEO, however, a requisition that is approved by the CIO but still needs final approval by the CEO first must be approved by the CFO per their business rules).” In this case, the system cannot be setup to this because AME does not have the ability to add an approver into the Approval List after it has already been built, which is required in this example.

What Attributes within AME does iProcurement and Oracle Purchasing seed into the system? 

The following attributes are seeded by the iProcurement team

  • Requisition total: This is the total of all requisition lines that have not been canceled. The total is in the functional currency. The conversion method is derived from the profile POR: Default Currency Conversion Rate Type value for the user. GL’s currency conversion must be enabled.
  • Commodity: This value is derived by looking at the commodity associated with the item category for the requisition line.
  • Natural Account: This is the segment of the accounting flex field that is specified as the Natural Account Segment. The value for this attribute is derived from the natural account segments for the charge accounts specified on the requisition line distributions.
  • Cost Center: This is the segment of the accounting flex field that is specified as the Cost Center Segment. The value for this attribute is derived from the cost center segments for the charge accounts specified on the requisition line distributions.
  • Item Number: This is the item number composed by concatenating all the segments defined on the Item key flex field. This value is derived from the Item number associated with the requisition line.
  • Item Category: This is the item category composed by concatenating all the segments defined on the Item Category key flex field. This value is derived from the item category associated with the requisition line.
  • Deliver to Location: This value is derived from the deliver-to location specified on the requisition line. Here we use the location code in database base language, because AME does not support MLS in setup forms.

What does Voting Regime mean? 

Voting Regime is region that can be setup in AME when creating an Approval Group. There are four choices available in the Voting Regime region. They are:

  • Series
  • Consensus
  • First Responder Wins
  • Order Number

All of the Rule Types Supported?

list of Rules Types are listed below with Explanation.

  • List-Creation List-Creation Exception Standard creation of approval list, excluding a specified condition
    Example : Have requisitions between $0 and $1000 approved by up to at most 3 levels except in the Deliver to Location V1 New York).
  • List Modification create a standard list-creation rule with some type of modification to that rule.
    Example: If two rules are required such as:
    Invoice amount > $10K go up to VP lst
  • Post-List Approval-Group - This approval group will be appended to the end of the chain of authority approval list.

Can different Approval Rules be Setup in AME across different Operating Units? 

No. Approval Rules setup in AME will be used across all Operating Units. If it is necessary to not have rules work in a particular Operating Unit, there are two ways to do this:

  • Turn off AME in that particular Operating Unit
  • Create a rule that excludes that particular Operating Unit from the rule
  • or 1) based on a attribute for operating unit and having different rule with conditions such that different rule will be applicable for different operating unit
    2) Using a dynamic group in rules: The group used returns appropriate user based on operating unit

What functional limitations exist when using AME? 

The followings features cannot be used with AME based Requisition Approval Workflow

  • Notification TimeOuts with Reminders
  • The Forward Documents form cannot be used with Notifications pending approval that were sent via Requisition Approval Workflow with AME
  • The Notifications that are sent only have Approve and Reject response actions. Forward and Approve and Forward are not available at this time.

 

Oracle R12 : Interview Questions Answers on GL / Subledgers


1. What are the tables involved in the Transfer to GL and GL posting?

Subledger Tables
XLA_AE_HEADERS
XLA_AE_LINES
XLA_DISTRIBUTION_LINKS

Transfer Journal Entries to GL (XLAGLTRN) process takes the subledger journals and inserts records into the Interface Tables

Interface Tables
GL_INTERFACE / XLA_GLT_<groupid>

Journal Import (GLLEZL) then reads from the interface table and creates records in the GL Tables

GL Tables 
GL_JE_BATCHES
GL_JE_HEADERS
GL_JE_LINES
GL_IMPORT_REFERENCES

GL Posting process then posts to the GL_BALANCES table.

What are the different methods to transfer Subledger journals to GL?

a) ONLINE MODE
GL Transfer can be spawned during Online Accounting using the “Final Post” option for a specific document (Example: AP Invoice and AR Transaction).

Example: Navigation in Payables: Invoices/Entry/Invoices: Action: Create Accounting/Final Post. This  spawns the GL Transfer, the Journal Import, Data Manager and the GL Posting processes. This request transfers ALL the final accounted data for that document. This method of transfer uses the interface table GL_INTERFACE to move the journals to the general ledger.

b) BATCH MODE
GL Transfer can also be spawned by the Create Accounting concurrent request when submitted with the “Transfer to GL” parameter set to Y.

Example:  Navigation in Payables: Other/Request/Run: Create Accounting
This spawns the journal import and the data manager processes. The GL Posting process is spawned if the Post to GL parameter is set to Yes when submitting the Create Accounting. This request transfers all the final accounting created by the Create Accounting request that spawned it. This method uses the interface table XLA_GLT_<groupid>.

c) CONCURRENT REQUEST
GL Transfer can be submitted in standalone mode using the concurrent request “Transfer Journal Entries to GL”.

Example: Navigation in Payables: Other/Request/Run: Transfer Journal Entries to GL
This spawns the Journal Import and the Data Manager programs. This request transfers all the final accounting that exists for the given ledger and end date. This method uses the interface table XLA_GLT_<groupid>.

What is the setup option that determines the level of detail in the accounting lines created for a specific transaction in XLA_AE_LINES?

Each Journal Line Type (JLT) can be setup as required to result in either detailed or merged lines in XLA_AE_LINES.

Navigation: Accounting Setups : Subledger Accounting Setup : Accounting Methods Builder : Journal Entry Setups
Form :”Define Journal Line Types”
Field : “Merge Matching Lines”

The different options are as follows:

1) ALL – The matching lines in XLA_DISTRIBUTION_LINKS for the specific accounting header and specific journal line type (example: LIABILITY) are merged to create records in XLA_AE_LINES.

2) DR/CR – The matching lines in XLA_DISTRIBUTION_LINKS, for the specific accounting header and specific journal line type (example: LIABILITY) with debit side entries, are merged to create one debit entry in XLA_AE_LINES. The matching lines with credit side entries are merged to create one credit side entry in XLA_AE_LINES.

3) NO – Lines in XLA_DISTRIBUTION_LINKS for the specific accounting header and specific journal
line type (example: LIABILITY) are not merged and copied into XLA_AE_LINES.

NOTE: This setup applies to merging lines within a specific transaction.

What is the setup option that determines if transfer to GL is in detail or summarised mode?

There are two variables that determine how the data is transferred to GL from the subledger tables XLA_AE_HEADERS and XLA_AE_LINES. These setups determine whether accounting data from across multiple transactions in the subledger will be merged or not merged while inserting into rows in the GL_JE_HEADERS and GL_JE_LINES tables.

a) Subledger Accounting Options

Navigation: Accounting Setups : Ledger Setup : Define : Accounting Setups
Choose the ledger
Click on “Update Accounting Options”
Scroll to Subledger Accounting Options in the Primary Ledger section
Click on Update Icon
Click on Update Icon against the Application to be setup(Example: Payables)

Field: General Ledger Journal Entry Summarization

This can be set to ONE of the following:

  • Summarize by GL Period
  • Summarize by GL Date
  • No Summarization

This setup determines if the accounting header is summarized or not.

b) Journal Line Types

Navigation: Accounting Setups : Subledger Accounting Setup : Accounting Methods Builder : Journal
Entry Setups
Form :”Define Journal Line Types”
Field: Transfer to GL
This can be set to Summary or Detail

This setup determines if the accounting lines in XLA_AE_LINES are summarized during transfer to GL.

Note 1: Lines cannot be summarised if the headers are not summarised.
If “General Ledger Journal Entry Summarization” is set to No Summarization, the “Transfer to GL” setup in the Journal Line Types are irrelevant. The lines and headers are not summarized in this scenario.

Note 2: Irrespective of transfer in Detail or Summary, there is always a one-to-one correspondence between the XLA_AE_LINES and GL_IMPORT_REFERENCES tables.

  What are the different combinations of the two setup options that determine if transfer to GL is in summary or detail and the corresponding outcome?

GL Journal Entry Summarization JLT -Transfer to GL Expected behavior
Summarize(By GL Date or Period) Summary Summarized at both GL_JE_HEADERS and GL_JE_LINES
Summarize(By GL Date or Period) Detail Summarized at GL_JE_HEADERS, detail GL_JE_LINES
No Summarization Detail Detailed at GL_JE_HEADERS and GL_JE_LINES
No Summarization Summary Detailed at GL_JE_HEADERS and GL_JE_LINES

Note: The last two options cause the level of detail in the GL to be the same as in the Subledger.

What columns associate GL data back to the SLA data?

Since there is always a one-to-one correspondence between XLA_AE_LINES and GL_IMPORT_REFERENCES, they are used to link GL and the subledgers.

GL_IMPORT_REFERENCES.gl_sl_link_id => XLA_AE_LINES.gl_sl_link_id
GL_JE_BATCHES.group_id => XLA_AE_HEADERS.group_id

 

What columns indicate the Transfer Status of accounting data in subledger?

The XLA_AE_HEADERS table shows the transfer status of the accounting data, after successful transfer to the GL and Journal Import:

XLA_AE_HEADERS.gl_transfer_status_code = Y
XLA_AE_HEADERS.gl_transfer_date is not null
XLA_AE_HEADERS.group_id is not nullFor 11i data upgraded to R12, the transfer status can be determined using the followingXLA_AE_HEADERS.gl_transfer_status_code = Y
XLA_AE_HEADERS.gl_transfer_date is null
XLA_AE_HEADERS.group_id is null
XLA_AE_HEADERS.upg_batch_id is not null  –> indicates 11i data
 

Oracle R12 : Multi-Org Access Control (MOAC)


Release 12 sub-ledgers can process transactions for multiple operating units from a single responsibility (without changing responsibilities). Using Multi Org Access Control security features we can control responsibilities access to operating units in a shared services environment. These operating units can span across Business Groups.

For demo purpose let’s use vision instance, in the screen shot below you can see multiple operating units in the List of Values before setting up the security. In this demo we will setup to show only 2 operating units Vision Operations and Vision Construction in the List of Value for Payables,Vision Operations (USA) responibility.

Users need to plan the responsibilities as needed and setup security profiles.

AP Invoice Entry Screen:

To setup this access control three steps were involved:
1. Define Global Security Profile
2. Run Security List Maintenance Program
3. Assign the new security profile to MO: Security Profile
Let’s check the setup in detail:

Step 1: Define Global Security Profile
Responsibility : Human Resources
Navigation : Security–>Global Profile

Step2: Run the Security List Maintenance Program
Responsibility : Human Resources
Navigation : View–>Request–>Submit New Request

Step3: Assign the Security Profile to the MO: Security Profile
Responsibility : System Administrator
Navigation : Profile->System

Note: We use Payables, Vision Operations (USA) for this demo

Note: Check the AP Invoice Entry Screen after assigning the MO: Security Profile

Oracle Cash Management : Cash Pools


Cash pooling is a cash management technique aimed at optimizing the balances of the internal bank accounts held at one or several banks. It is usually performed on a daily basis.

To perform cash pooling, you need to define a cash pool and assign internal bank accounts to the cash pool.

A cash pool is a group of bank accounts with one or more concentration accounts and multiple sub accounts. You can create the following two types of cash pools:

• Notional Cash Pool. A cash pool consisting of one concentration account and multiple sub accounts. This type of cash pool is used for cash leveling similar to zero balancing without the actual funds movement. The cash pool’s closing balance for a day is calculated as a notional sum of the individual balances of the bank accounts included in the pool. The interest is calculated on the notional net balance of all accounts included in the pool and then paid out or charged to the concentration or lead account.

• Physical Cash Pool. A cash pool consisting of one or two concentration accounts and multiple sub-accounts with funds transfer rules specified for each combination of concentration accounts and sub accounts. This type of cash pool is used for cash leveling wherein the user can initiate fund transfers or mirror cash transfers performed by the bank.

Before creating Physical Cash Pools, you have to decide how the physical fund transfers will be recorded in the system. If you are using Oracle Treasure , you can choose to create fund transfers in Oracle Treasury or Oracle Cash Management by choosing one or the other in the site-level system profile option CE: Bank Account Transfers. If you are using Oracle Cash Management only, you will only be able to create fund transfers in Oracle Cash Management

For set up and configuration and more … refer Cash Management User Guide, chpater 8  : http://download.oracle.com/docs/cd/B34956_01/current/acrobat/120ceug.pdf

 

 

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How to Create Purchase Orders


Purchasing provides the Purchase Orders window that you can use to enter Standard and Planned purchase orders as well as Blanket and Contract purchase agreements. You must be defined as a buyer to use this window.

1.   Navigate to the Purchase Orders window from the menu:

  • by selecting the New PO button in the Find Purchase Orders window or any of its results windows
  • by selecting the Open button in any of the Find Purchase Order results windows
  • by selecting the Open button and then double-clicking the Open Documents icon in the Notifications Summary window when the current line is a purchase order
  • if the PO: Display the AutoCreated Document profile option is set to Yes, Purchasing opens the Purchase Orders window when you have completed AutoCreation of a purchase order. See: Profile Options in Purchasing.

The upper part of the Purchase Orders window has the following display-only fields:

  • Created – The system date is displayed as the creation date.
  • Status – Possible order status values are: Incomplete – The order has not been approved. Approved – You have approved the order. You can print it and receive items against it. Requires Reapproval – You approved the order and then made changes that require you to reapprove it.
  • Total – For standard and planned purchase orders, Purchasing displays the current Total order amount.
  • Amount Agreed – For blanket and contract purchase agreements only, Purchasing displays the agreed-to amount for the agreement. The amount Released value should not exceed the Amount Agreed. (Note also that if you change the Amount Limit in the Terms and Conditions window, the Amount Agreed should be equal to or less than the Amount Limit.)
  • Released – For blanket and contract purchase agreements only, Purchasing displays the current total amount Released. The amount released is 0.00 until you create releases against the blanket purchase agreement or reference the contract on a standard purchase order.
  • Currency – Purchasing displays the functional currency. This is overridden by supplier currency information.
  • P-Card – Purchasing displays a procurement card number if the purchase order was created from a iProcurement requisition that used a corporate credit card for the purchase. This field displays if the profile option PO: Use P-Cards in Purchasing is set to Yes. Only the last four digits are displayed. Procurement cards can be used for items with a Destination Type of Expense, for documents that do not contain a Project number, and for standard purchase orders or releases only.

2.   Enter a unique Purchase Order number. The Revision is displayed to the right of the number. If you chose automatic purchase order number generation in your Purchasing Options, the cursor does not enter this field and the number is generated when you save your work.

3.   Choose the purchase order Type: Standard Purchase Order, Planned Purchase Order, Blanket Purchase Agreement, Contract Purchase Agreement.

4.   Enter the name of the Supplier for this purchase order. To approve a purchase order, you must provide a supplier.

Attention: You cannot change the supplier once you approve the purchase order. The purchase order becomes a legal document when you approve it. To change the supplier after you approve a purchase order, you must cancel the existing purchase order and create a new one for the other supplier.

5.   Enter the Site of the supplier you want to use for your purchase order. If the supplier you choose has only one site, it is defaulted into this field. Before you can approve a purchase order, you must provide a site. Once the purchase order is approved, you can change the supplier site only if the PO: Change Supplier Site profile option is set to Yes. And only sites with the same currency as the previous site can be used. If you change the supplier site, the revision will be incremented, and will require reapproval. You cannot enter the supplier site until you have entered a supplier.

You can optionally enter the name of the Contact at the supplier site. If the supplier you choose has only one contact name, it is defaulted into this field. You cannot enter a contact until you have entered a supplier site.

6.   Enter the Ship To and Bill To locations for the purchase order. If you entered a supplier and supplier site, the Ship To and Bill To defaults reflect the locations you assigned to the supplier or supplier site. You can accept these values or change them to other locations.

7.   If the Enforce Buyer Name option in your Purchasing Options is set to Yes, your name is displayed as the Buyer, and you cannot change this value. Otherwise, you can enter the name of any buyer.

8.   For blanket and contract purchase agreements only, enter the total Amount Agreed. This is the amount you have agreed to spend with the supplier.

9.   Enter a Description of the purchase order. These comments are for internal use only and do not print on the purchase order. You can enter up to 240 characters. If you want to add unlimited notes, use the Attachments feature.

10. For standard and planned purchase orders and blanket purchase agreements, enter line information for the header you have just created.

Entering Purchase Order Lines

Use the Lines tabbed region in the Purchase Orders window to create purchase order lines.

When you save your work, Purchasing creates shipments and distributions if sufficient valid default information is available. Use the Purchase Order Shipments window to review, edit, and create multiple shipment lines for each purchase order line.

To enter a purchase order line:

1.   Select the Items tabbed region in the Purchase Orders window.

2.   Enter the purchase line Number for the purchase order line. If you start a new purchase order line, Purchasing displays the next sequential line number available. You can accept this number or enter any line number that does not already exist. This number is used for all tabbed regions in the Purchase Orders window.

3.   Enter the line Type for the item. When you create your purchase order line, you enter a line type as part of your item information. When you enter a line type, Purchasing automatically copies the corresponding defaults. You can change the line type after you have saved your work, if the change is in the same line type class, but Purchasing won’t automatically copy the new defaults. If you change the line type before you save your work, Purchasing automatically copies the new defaults if the new line type is in a different line type class.

You can enter predefined items for your purchase order line only when you specify a quantity based line type. If Bills of Material and Work in Process are installed and you have defined an outside processing line type, you can enter that type here to purchase outside processing.

4.   Enter the Item you want to purchase. If you enter an item, Purchasing displays the purchasing category, item description, unit of measure, and unit price associated with the item. To create a purchase order line for a one-time item, simply skip the item number field and enter a purchasing category and an item description. If you are purchasing outside processing, you can enter only outside processing items.

5.   Enter the Revision number for the item on the purchase order line. The Revision number is required if the item is under revision control.

6.   Enter the purchasing Category of the item you want to purchase. If you choose an item, Purchasing displays the purchasing category for the item. You cannot change the purchasing category if you choose an item.

7.   Enter the Description of the item. If you choose an item, Purchasing displays its description. You can change the item description only if you set up the item attributes to let you do so. The full item description for the current line is displayed beneath the Lines tabbed region.

8.   Enter the total Quantity you are ordering on the purchase order line.

9.   Enter the UOM of the item. The unit of measure qualifies the quantity you enter on the purchase order line. When you choose a line type, its default unit of measure appears here. When you choose an item number, its unit of measure overrides the line type default. You can change the UOM until the item has been received, billed, or encumbered.

10. Enter the unit Price for the item. If you choose an item, the default price is the list price for the item. Otherwise, the default price is from the line type. The Amount field displays the unit price multiplied by the quantity.

11. Enter the Promised date that the supplier promised delivery of the items. This promised-by date is printed on the purchase order.

12. Enter the Need By date when the requestor needs the item. This date is printed on the purchase order if you do not provide a promised-by date. If you are using Master Scheduling/MRP, you must provide either a need-by date or a promised-by date for shipments that correspond to purchase order lines with Master Scheduling/MRP planned items. A need-by date is also required for Inventory planned items.

13. Optionally enter the Supplier’s Item number for this item.

Multiple distributions, Promised date, and Need-By date display as “multiple” at the line level.

14. Select Reserved to reserve funds for the line.

To view tax information:

After you have entered and saved all tax information, do either or both of the following:

  • Choose Tax Code Summary from the Tools menu to see the total recoverable and nonrecoverable tax for each tax code in your document.
  • Choose Tax Details from the Tools menu to see recoverable and nonrecoverable tax details for each line, shipment, and distribution.

To reaccess a purchase order quickly:

  • Choose Place on Navigator from the Action menu. Choose the Documents tabbed region in the Navigator to later access the purchase order more quickly.

Note: Once you place a document in the Navigator, it is the first thing you see in the Navigator the next time you log into Purchasing. Choose Functions to return to the Purchasing menu.

Entering Purchase Order Shipments

Use the Shipments window to enter multiple shipments for standard and planned purchase order lines and to edit shipments that Purchasing automatically created for you. A purchase order shipment specifies the quantity, ship-to organization and location, date you want your supplier to deliver the items on a purchase order line, and country of origin for the items. When you save your work, Purchasing creates distributions if sufficient valid default information is available and if there are no existing distributions.

To enter purchase order shipment information:

1.   For standard and planned purchase orders, you can navigate to the Shipments window by selecting the Shipments button in the Purchase Orders window. The first tabbed region in the Shipments window is the Shipments tabbed region. In addition to the enterable fields discussed in the following steps, this region displays the UOM, the Original Promise date (if the Promised date has already been changed, the original promised date is displayed here), the Charge Account, the line Amount, and a check box to indicate whether funds have been Reserved.

2.   Enter the line Number for the shipment line. If you enter a new shipment line, Purchasing displays the next sequential line number available. You can enter any line number that does not already exist.

3.   Enter the ship-to Organization. If you entered an item, you can pick only organizations in which the item is defined. If you entered a revision number on the purchase order line, then the item revision must also be defined in the organization. Note that you cannot update the organization once you have saved your work if the shipment has distributions.

4.   Enter the Ship-To location for the shipment. You can pick any location that does not have an organization or any location whose organization matches the organization in the previous field.

5.   Enter the Quantity for the shipment. This value must be greater than 0. The default is the quantity from the corresponding Purchase Order Line. If you decrease this quantity, Purchasing automatically defaults the quantity ordered of the next line to the total quantity that you have not yet placed on a shipment line. The UOM is displayed to the right of the Quantity.

6.   Enter the date that the supplier Promised delivery of the items. This promised date is printed on the purchase order shipment. The default is from the Purchase Order Preferences window.

7.   Enter the Need By date when the requestor needs the item. This date is printed on the purchase order if you do not enter a promised date. The default is from the Purchase Order Preferences window. If you use Purchasing with Master Scheduling/MRP, you must provide a need-by date for purchase order shipments with Master Scheduling/MRP planned items. You must also provide a need-by date for Inventory planned items.

8.   Optionally choose or change the Note for Receiver. The Note for Receiver is a note which will be displayed at the time of receipt for this shipment. The Note for Receiver defaults from the requisition line that this purchase order was created from. Otherwise, this field is blank.

9.   Optionally choose or change the Country of Origin.

The Country of Origin is the country in which an item is manufactured.

The Country of Origin defaults from the Approved Supplier List, if it is defined there. If not, it defaults from the supplier site in the Supplier Sites window. Otherwise, this field is blank. You can leave it blank or select a country.

If you do not know the originating country, you can enter or change the Country of Origin later on the receipt.

10.  Note that Taxable is selected if a Tax Code is associated with the item.

If there is no Tax Code for the item, Taxable is not selected. You cannot change the Taxable check box independently of the Tax Code.

11.  Enter or use the default Tax Code for taxable items.

The tax code defaults from the following sources, in the following order:

  • The Purchase Order Preferences window. If you have specified a preferred tax code in this window, Purchasing defaults this tax code onto the purchase order shipment.
  • The Tax Defaults region in the Purchasing Options window. If you have specified a tax defaulting hierarchy in this window, Purchasing searches for and defaults the tax code based on that tax defaulting hierarchy.

Accept the default tax code or select another. You cannot override the tax code if the profile option Tax: Allow Override of Tax Code is set to No, if the shipment has been received, or while funds for the document are reserved if you use encumbrance accounting.

If on the purchase order you change a tax source, such as Supplier or Site, then Purchasing does not redefault a new Tax Code on the current shipment, but does default it on new shipments. The same is true even after you override the Tax Code: Purchasing does not redefault it on existing shipments when you change a tax source.

Note: If you change the Tax Code after already creating distributions for the shipment, the associated Recovery Rate on those distributions is not redefaulted for the new Tax Code.

12. Save your work.

Entering Purchase Order Distributions

Use the purchase order Distributions window to enter distribution information for purchase order shipments or to view distributions that Purchasing has automatically created for you. You can enter multiple distributions per shipment line. You can also enter information about paper requisitions in this window.

To enter purchase order distribution information:

1.   Navigate to the Distributions window by selecting the Distributions button in the Shipments window. The Shipments window is accessed from the Purchase Orders window. You begin in the Destination tabbed region.

2.   Enter the line Number for the distribution line. If you enter a new distribution line, Purchasing displays the next sequential line number available. You can enter any line number that does not already exist.

3.   The destination type determines the final destination of the purchased items. Choose one of the following options:

  • Expense – The goods are delivered to the requestor at an expense location. The destination subinventory is not applicable.
  • Inventory – The goods are received into inventory upon delivery. You can choose this option only if the item is stock enabled in the ship-to  organization.
  • Shop Floor – The goods are delivered to an outside processing operation defined by Work in Process. You can choose this option only for outside processing items.

4.   Enter the Requestor and Deliver To location for this distribution. If the destination type is Inventory, you can also enter the Subinventory.

5.   Enter the Quantity of the purchase order shipment that you want to charge to the Accounting Flexfield. The default value comes from the quantity you enter in the Shipments window. If you decrease the default quantity, Purchasing automatically defaults on the next distribution line the total quantity you have not yet assigned to a distribution line.

6.   Enter the Charge Account. When you save your changes in this window, Purchasing uses the Account Generator to automatically create the following three accounts for each distribution:

  • Charge: the account to charge for the cost of this item
  • Accrual: the AP accrual account
  • Variance: the invoice price variance account

If you are using encumbrance control, Purchasing also creates the following account for each distribution:

  • Budget: the encumbrance budget account

The Account Generator creates these accounts based on predefined rules.

If the destination type is Expense, the default charge account you enter in the Purchases Order Preferences window overrides the charge account supplied by the Account Generator, and you can update the charge account here.

For outside processing lines, the cursor does not enter this field during initial entry, since the Account Generator cannot build accounts until you have entered the Resource Sequence in the Outside Processing window.

7.   Change or accept the default Recovery Rate for taxable items.

The recovery rate is the percentage of tax that your business can reclaim for credit. The recovery rate defaults in based on the Tax Code in the purchase order Shipments window and the setup in the Financials Options window.

You can change the recovery rate if the profile option Tax: Allow Override of Recovery Rate is set to Yes, if the shipment has not yet been received, or while funds for the document are not reserved (if you use encumbrance accounting). Depending on the setup in the Financials Options window and the type of tax, only certain recovery rates may be allowed.

If on a purchase order you change a tax source, such as Supplier, Site, or Tax Code, then Purchasing does not redefault a new Recovery Rate on the current distributions, but does default it on new distributions.

You can choose to use a different recovery rate for different distributions, even if they use the same tax code.

8.   Enter the GL Date you want to use when you reserve your funds. You can enter a GL Date only if you set up your financials system options to use encumbrance or budgetary control for purchase orders. The default is the current date.

If you enter a date that belongs to two separate accounting periods, Purchasing automatically creates a journal entry in the first accounting period that contains this date.

The Reserved check box indicates whether you successfully reserved funds for this purchase order distribution. You reserve your distribution when you approve your purchase order. You cannot change any purchase order distribution that you have already encumbered unless you explicitly unreserve the funds in the Approve Document window.

To enter distribution detail information:

1.   Select the More tabbed region.

The Online check box indicates whether this distribution is part of an on-line requisition. If so, Purchasing displays the requisition number and line number.

2.   If this distribution comes from an on-line requisition, Purchasing displays the Requisition Number and Line number, you cannot update this field. If this distribution does not come from an on-line requisition, enter the paper requisition number in this field. The default is the paper requisition number from the Purchase Order Preferences window.

Purchasing displays the Budget Account, Accrual Account, and Variance Account numbers supplied by the Account Generator.

3.   Enter the Rate Date for the currency. Purchasing uses this date to obtain the currency conversion rate from your conversion definitions. You cannot enter this field when you edit a purchase order created in your base currency.

Different Types of Purchase Order Documents


Standard Purchase Orders: You generally create standard purchase orders for one-time purchase of various items. You create standard purchase orders when you know the details of the goods or services you require, estimated costs, quantities, delivery schedules, and accounting distributions.
It is recommended to choose a standard purchase order when you require vendor commitment to specific items/services, quantities and delivery schedules, but a long-term agreement is not appropriate.

Blanket Purchase Agreements: You create blanket purchase agreements when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them. Blanket purchase agreements can be created for a single organization or to be shared by different business units of your organization (global agreements).
For many organizations it is sometimes referred to as “standing order” or an “open order”.
It is recommended to choose a blanket agreement when you’ve negotiated volume discounts and want to create releases against these negotiated volumes, or when you commit to specific items, quantities or amounts.

Blanket Releases: You can issue a blanket release against a blanket purchase agreement to place the actual order (as long as the release is within the blanket agreement affectivity dates).

Contract Purchase Agreements/Order: You create contract purchase agreements with your suppliers to agree on specific terms and conditions without indicating the goods and services that you will be purchasing. You can later issue standard purchase orders referencing your contracts.
It is recommended when a pricing negotiation on your entire volume of business. Use a contract to manage terms and conditions for this type of negotiation; couple it with a catalog quotation to reference pricing on a per item basis when you create standard purchase order lines.

Global Agreements: You may need to negotiate based on an enterprises’ total global purchase volume to enable centralizing the buying activity across a broad and sometimes diverse set of businesses. Using global agreements (a special type of blanket purchase agreement), buyers can negotiate enterprise-wide pricing, business by business, then execute and manage those agreements in one central shared environment. Enterprise organizations can then access the agreement to create purchase orders that leverage pre-negotiated prices and terms.

Planned Purchase Orders: A planned purchase order is a long-term agreement committing to buy items or services from a single source. You must specify tentative delivery schedules and all details for goods or services that you want to buy, including charge account, quantities, and estimated cost.
It is recommended to choose a planned purchase order when you want to encumber the order before creating releases. Also use to provide vendor scheduling for capacity management while issuing releases to confirm order commitment.