Purchase Order Flow

Step 1:We will be raising the Requisitions for the items which are needed.

Requisition is 2 types • Internal Requisition • Purchase

Internal Requisition is used when we are getting the items from one organization to another organization of the same business group.

Purchase Requisition is raised when we are getting the items from outside the business group.

Step 2:Once the Requisition has been approved, we will be sending (Request For Quotes) RFQ’s to different Suppliers. It contains the information regarding the type of RFQ, terms and conditions, shipments, currency.

RFQ is of 3 types
• Bid RFQ • Catalog • Standard

BID: Used for a fixed specific quantity, Location and date. This will be used for large or expensive price of equipments. That you have never order before. There won’t be price any breaks for a BID Quotation.

CATALOG: This will be used for high volume items for which your supplier sends information regularly. The CATALOG RFQ includes price breaks at different quantity levels.

STANDARD: It is used for items we need only once or not very often for a specific fixed quantity, location and date. It includes price breaks at different quantity levels.

Step 3:We will be receiving the quotations from different suppliers. Quotation is of 3 Types.
• Bid
• Catalog
• Standard

Step 4:Based on the quotations, we will be deciding the supplier and purchasing order is given to that supplier.
Purchasing is of 4 types
• Standard
• Planned
• Blanket
• Contract

Step 5:Once we receive the items from the Supplier we will issue the receipts to the Supplier. This is done in 3 ways.
• Two-Way: In 2-way we will compare PO and Invoice.• Three-Way: In 3-way we will compare the PO, Receipt and Invoice.• Four-Way: In 4-way we will compare PO, Receipt, Inspection and Invoice.

2-Way Matching verifies that Purchase order and invoice information match within your tolerances as follows:Quantity Billed <-Quantity Ordered Invoice Price <- Purchase Order Price (<- Sign is used because of tolerances)


3-Way Matching verifies that the receipt and invoice information match with the quantity tolerances defined:Quantity billed Quantity received

4-Way Matching verifies that acceptance documents and invoice information match within the quantity tolerances defined:Quantity billed <- Quantity accepted. (Acceptance is done at the time of Inspecting goods).Whether a PO shipment has 2-way, 3-way or 4-way matching can be setup in the Shipment Details zone of the Enter PO form (character).

RECEIPT REQUIRED INSPECTION REQUIRED MATCHING
Yes Yes 4-Way
Yes No 3-Way
No No 2-Way
In ‘More’ alternative region of Shipments block, you define the Invoice Matching option, where you can choose 2-way, 3-way or 4-way match.

Step 6:Because of these Transactions Inventory and Payables get affected.

Oracle Purchasing Tables

Table Name : PO_REQUISITION_HEADERS_ALL
Columns:
REQUISITION_HEADER_ID
PREPARER_ID
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Segment1: Is the system–assigned number you use to identify in forms and reports?
Stores information about requisition headers. You need one row for each requisition header you create. Each row contains the requisition number, preparer, status, and description.SEGMENT1 is the number you use to identify the requisition in forms and reports (unique).

Table Name : PO_REQUISITION_LINES_ALL
Columns:
REQUISITION_LINE_ID
REQUISITION_HEADER_ID
LINE_NUM
LINE_TYPE_ID
CATEGORY_ID
ITEM_DESCRIPTION
UNIT_MEAS_LOOKUP_CODE
UNIT_PRICE, QUANTITY
DELIVER_TO_LOCATION_ID
TO_PERSON_ID
SOURCE_TYPE_CODE
Stores information about requisition-lines. Line number, item number, item category, item description, need–by date, deliver–to location, item quantities, units, prices, requestor, notes, and suggested supplier information for the requisition line. LINE_LOCATION_ID - Purchase order shipment line on which you placed the requisition. It is null if you have not placed the requisition line on a purchase order. BLANKET_PO_HEADER_ID and BLANKET_PO_LINE_NUM store the suggested blanket purchase agreement or CATALOG quotation line information for the requisition line. PARENT_REQ_LINE_ID contains the REQUISITION_LINE_ID from the original requisition line if you exploded or multi-sourced this requisition line.

Table Name : PO_HEADERS_ALL
Columns:
PO_HEADER_ID
AGENT_ID
TYPE_LOOKUP_CODE
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Information for your purchasing documents. There are six types of documents that use PO_HEADERS_ALL. RFQs, Quotations, Standard purchase orders, planned purchase orders, Blanket purchase orders, Contracts can uniquely identify a row in PO_HEADERS_ALL using SEGMENT1 and TYPE_LOOKUP_CODE or using PO_HEADER_ID.BLANKET_TOTAL_AMOUNT for blanket purchase orders or contract purchase orders. If we use copy document Oracle Purchasing stores the foreign key to your original RFQ in FROM_HEADER_ID.

Table Name : PO_LINES_ALL
Columns:
PO_LINE_ID
PO_HEADER_ID
LINE_TYPE_ID
LINE_NUM
Stores current information about each purchase order line. CONTRACT_NUM reference a contract purchase order from a standard purchase order line.

Table Name : PO_VENDORS
Columns:
VENDOR_ID
VENDOR_NAME
SEGMENT1
SUMMARY_FLAG
ENABLED_FLAG
Information about your suppliers. Purchasing, Receiving, Payment, Accounting, Tax, Classification, and General Information.

Table Name : PO_VENDOR_SITES_ALL
Columns:
VENDOR_SITE_ID
VENDOR_ID
VENDOR_SITE_CODE
Information about your supplier sites. A row for each supplier site you define. Each row includes the site address, supplier reference, purchasing, payment, bank, and general information. Oracle Purchasing uses this information to store supplier address information.

Table Name : PO_DISTRIBUTIONS_ALL
Columns:
PO_DISTRIBUTION_ID
PO_HEADER_ID
PO_LINE_ID
LINE_LOCATION_ID
SET_OF_BOOKS_ID
CODE_COMBINATION_ID
QUANTITY_ORDERED
DISTRIBUTION_NUM
Contains accounting distribution information for a purchase order shipment line. You need one row for each distribution line you attach to a purchase order shipment.
There are 4 - types of documents using distributions in Oracle Purchasing:· Standard Purchase Orders
· Planned Purchase Orders
· Planned Purchase Order Releases
· Blanket Purchase Order Releases

Includes the Destination Type, Requestor ID, Quantity Ordered and Deliver–To Location for the distribution.

Table Name : PO_RELEASES_ALL
Columns:
PO_RELEASE_ID
PO_HEADER_ID
RELEASE_NUM
AGENT_ID
RELEASE_DATE
Contains information about blanket and planned purchase order releases. You need one row for each release you issue for a blanket or planned purchase order. Each row includes the buyer, date, release status, and release number. Each release must have at least one purchase order shipment.

Table Name : PO_VENDOR_CONTACTS
Columns:
VENDOR_CONTACT_ID
VENDOR_SITE_ID
Stores information about contacts for a supplier-site. You need one row for each supplier contact you define.
Each row includes the contact name and site.

Table Name : PO_ACTION_HISTORY
Columns:
OBJECT_ID
OBJECT_TYPE_CODE
OBJECT_SUB_TYPE_CODE
SEQUENCE_NUM
Information about the approval and control history of your purchasing documents. There is one record in this table for each approval or control action an employee takes on a purchase order, purchase agreement, release, or requisition.
· OBJECT_ID - Document header Identifier
· OBJECT_TYPE_CODE - Document Type
· OBJECT_SUB_TYPE_CODE - Document subtype
· SEQUENCE_NUM - Sequence of the approval or control action for a document.

Table Name : PO_REQ_DISTRIBUTIONS_ALL
Columns:
DISTRIBUTION_ID
REQUISITION_LINE_ID
SET_OF_BOOKS_ID
CODE_COMBINATION_ID
REQ_LINE_QUANTITY
DISTRIBUTION_NUM
Stores information about the accounting distributions associated with each requisition line.

Table Name : PO_LINE_LOCATIONS_ALL
Columns:
LINE_LOCATION_ID
LAST_UPDATE_DATE
LAST_UPDATED_BY
PO_HEADER_ID
PO_LINE_ID
SHIPMENT_TYPE
Contains information about purchase order shipment schedules and blanket agreement price breaks. You need one row for each schedule or price break you attach to a document line. There are 7- Types of documents that use shipment schedules:
· RFQs
· Quotations
· Standard Purchase Orders
· Planned Purchase Orders
· Planned Purchase Order Releases
· Blanket Purchase Orders
· Blanket Purchase Order Releases
Each row includes the location, quantity, and dates for each shipment schedule. Oracle Purchasing uses this information to record delivery schedule information for purchase orders, and price break information for blanket purchase orders, quotations and RFQs.