Oracle Purchasing – Line Types

Oracle Purchasing – Line Types

Line Types:

The main feature of Line type in Oracle purchasing is to differentiate the orders for goods, services or outside processing orders. 

When you enter a line on a purchasing document and choose a line type, Purchasing automatically displays the default information that is defined here for the line type.

Line type controls the type of various documents like Purchase Orders, Requisitions. Default Line Type can be selected for these documents. When any of these documents is created, the line type is part of the item information. Line type can also be overridden for each document line.

Navigation:

India Local Purchasing > Oracle Purchasing > Setup > Purchasing > Line Types

Name:

Define a Line Type Name

Category:

Enter the default purchasing Category for items with this line type. This purchasing category can be overridden on purchasing document lines.

Description:

Define a Description for the Line Type

Unit:

Enter the default Unit of measure for items with this line type. You must enter a default unit when you use the Amount value basis for your line type. This unit of measure can be overridden on the purchasing document lines only for non-Outside Processing line types with Quantity value basis.

Value Basis: This field cannot updated after the work is saved.

Amount: Receive items by amount. You cannot change the unit of measure and unit price on purchasing document lines.

Quantity: Receive items by quantity. Outside Processing line types must have this value basis.

For both amount and quantity based line types, you can specify default values for category, unit of measure, and whether you require receipt. 

For quantity based line types, you can specify the unit price, but for amount based line types the unit price defaults to 1. 

For quantity based lines, you can specify whether the line type is used for outside processing.

Price:

Enter the default Unit Price for items with this line type. Purchasing automatically enters a unit price of 1 when you use the Amount value basis and prevents from updating this price when you create your line type. This unit price can be overridden on purchasing document lines only when with Quantity value basis line types.

Receipt Required:

Define yes or no to default on the purchasing document shipments with this line type. This default can be overruled when entering the shipment.

Outside Processing:

This Outside Processing to restrict this line type to purchasing outside processing. Also, when outside processing line type is used on a purchasing document, then the choices for the item are limited to outside processing items. This check box can be enabled only if the value basis is Quantity and using Work in Process.

Inactive Date:

Enter the Inactive Date on which the line type is no longer usable.

Types of Line types & Usuage:

S no	Value Basis	Purchase Basis	Line Type Usage
1	Quantity	Goods	This Line types is used when we know quantity and price of the item we are going to purchase. It can be also used for outside processing. Ex: If a laptop of 1000 dollars is to be purchased. Here you know the quantity and unit price.
2	Amount	Services	This Line type is used when you want to purchase services. Here while setting up price automatically became 1 and you can define unit which defaults on PO. Ex: Suppose you want to buy a consulting services to support oracle apps project for $1000 service.
3	Fixed Price	Service	This Line Type is available when service procurement is implemented. It is used to buy a fixed price general office service
4	Fixed Price	Temp Labour	This Line Type is used when service procurement is implemented. It’s where temp labour is fixed price like office cleaning.
5	Rate Based	Temp Labour	This Line Type is used when service procurement is implemented. It used to if you want to order temporary labor service by per unit rate. For this you need to define Job and then you can select UOM like day, hour or week and mention the price. For example need temporary clerk for 1 day or 1 hour or week.

Oracle Purchasing – Document Types:

Oracle Purchasing – Document Types:

Document Types:

Document Types window is used to define access, security and control specifications for all the Purchasing documents for the selected operating unit.

New document types cannot be entered but new document subtypes for RFQs & Quotations can be entered.

Oracle Purchasing provides the following document types:

S no	Document Types	Subtypes
1	Requisition (Req)	Internal
2		Purchase
3	Request For Quotation (RFQ)	Bid
4		Catalogue
5		Standard
6	Quotation	Bid
7		Catalogue
8		Standard
9	Purchase Order	Planned
10		Standard
11	Purchase Agreement	Blanket
12		Contract
13	Release	Blanket
14		Scheduled

Prerequisites: Purchasing Approval Hierarchy Setups

Navigation:

India Local Purchasing > Oracle Purchasing > Setup > Purchasing > Document Types

  

Select the Operating Unit at right corner of the window.

Click update button of any one of the document type.

Approval Block:

Owner Can Approve: 

Owner of the document is also an approver for the document. This field is not applicable when the Document Type is Quotation or RFQ.

Approver Can Modify: 

Enables the approver of the document to modify the document and then forward it to the next approver

Can Change Forward-To: 

Approver can change the next person to whom the document is forwarded

Approval Workflow: 

The Workflow Item Type that is used in this approval.

Workflow Start Process: 

The top process (first entry process) that is used in this approval.

Forward Method: 

The Forward Method field is not applicable when the Document Type is Quotation or RFQ. The following options apply regardless of whether you are using position hierarchies or the employee/supervisor relationship to determine your approval paths. Choose one of the following options:

Direct – The default approver is the first person in the preparer’s approval path that has sufficient approval authority.

Hierarchy – The default approver is the next person in the preparer’s approval path regardless of whether they have approval authority. (Each person in the approval path must take approval action until the person with sufficient approval authority is reached.)

Control Block:

Security Level: 

The following security levels are available:

Public – All system users can access the document

Private – Only the document owner and subsequent approvers can access the document

Purchasing – Only the document owner, subsequent approvers, and individuals defined as buyers can access the document

Hierarchy – Only the document owner, subsequent approvers, and individuals included in the security hierarchy can access the document

Access Level:

This LOV enables you to control which modification/control actions you can take on a particular document type once you gain access. Document owners always have Full access to their documents. The Access Level options include:

View Only – Accessing employees can only view this document

Modify – Accessing employees can view, modify, and freeze this document

Full – Accessing employees can view, modify, freeze, close, cancel, and final-close this document

Archive On: 

The Archive On field is applicable only when the Document Type is Purchase Agreement, Purchase Order or Release. Choose one of the following options:

Approve – The document is archived upon approval. This option is the default.

Transmission – The document is archived upon communication. A document transmission action would be printing, faxing, or e-mail.

Once defining the required setups in the document type click apply button and follow the same setups for other document types.

Reference – Oracle R12 - Purchasing User Guide 

Oracle Purchasing – Different types of Receiving Options

Oracle Purchasing – Different types of Receiving Options

Different types of receiving options available in Oracle Purchasing are:

1. Substitute Receipts

2. Unordered Receipts

3. Express Transactions

4. Cascade Transactions

5. Blind Receiving

Substitute Receipts:

Substitute Receipt is a used to receive substitute items in place of ordered items. For example receive Samsung Phone in place of an iPhone Phone.

Unordered Receipts:

Unordered receipts are used to receive unordered items. In case of any urgent requirement in the plant, no time to raise the Purchase Order and ask for approvals and if based on the urgency, supplier also supplied the material, the same can be received using unordered receipt functionality. Purchase order number is not mandatory.

But after receiving the material, the Purchase order to be raised and matched with the unordered receipt for completing the P2P cycle.

Express Transactions:

Express Transactions is used to receive material quickly. In Express Receiving is a receipt can be made for the whole Purchase Order in one go. System defaults the due quantities on each line.

Cascade Transactions:

Cascade Transactions is used to enable cascading for receipt i.e. a quantity received will be automatically applied to each eligible shipment line in turn of need by date.

Blind Receiving:

Blind receiving is used when receiver should record exact quantity they have received.

On receipt form the quantity ordered or due is not shown. Purchasing ignores all receipt tolerances and help to find out the exact quantity supplier has shipped.

Oracle Purchasing – Error Message - You are not setup as a worker. To access this form you need to be a worker.

Oracle Purchasing – Error Message - You are not setup as a worker. To access this form you need to be a worker.

The below error message is shown commonly, when a new users tries to access the purchase order forms.

Error Message:

“You are not setup as a worker. To access this form you need to be a worker.”

Below setups are to be followed to set the user as worker / Buyer to access the purchase order forms.

1. Create the user as a person (employee)

2. Attach the person (Employee name) in User Name

Create the User as a person (employee):

If the organization is HRMS enabled, the setup can be performed in HR Responsibility, else the setup steps to be performed in Purchasing Responsibility.

HR Navigation:

HRMS > Human Resource > People > Enter and Maintain

Purchasing Navigation:

India Local Purchasing > Oracle Purchasing > Setup > Personnel > Employee

Define the all the credential in the form to create the user as an employee in the organization.

Attach the person (employee name) in the User Name:

Navigation:

System Administrator > Security > User > Define

Query the user name and assign the person (employee name) in the person field.

Now the user can access the Purchase Order forms.

Oracle Inventory – Physical Inventory

Oracle Inventory – Physical Inventory:

Oracle Inventory provides a fully automated physical inventory feature that is used to reconcile system-maintained item on-hand balances with actual counts of inventory. Accurate system on-hand quantities are essential for managing supply and demand, maintaining high service levels, and planning production.

Physical Inventory is a process to verify whether the actual on-hand quantity in an inventory matches the system on-hand quantity. Mostly physical inventory counting is performed once a year, but based on business requirement the Physical inventory can be performed.

During Physical Inventory counting process, all inventory transactions will be blocked and no inventory moments to be performed.

Navigation:

India Local Inventory > Oracle Inventory > Counting > Physical Inventory > Physical Inventories

Physical Inventory Process:

Please do refer the below link for difference between Cycle count & Physical Inventory:

http://learnoraclecsbscm.blogspot.in/2015/06/oracle-inventory-difference-between.html 

Oracle Bill of Materials – Engineering Change Order (ECO):

Oracle Bill of Materials – Engineering Change Order (ECO):

What is an Engineering Change Order (ECO)?

Oracle Engineering Change Order (ECO) is an authorization order to implement changes to items, BOM & routings normally through a revision. Several changes can be grouped under one ECO.

Engineering Change Orders (ECOs) enables to control new item revisions and bill of material changes.

ECOs are numbered documents that is used to track product changes within the Engineering Change Management system. After have tested and approved an ECO, ECO can implement it and modify your standard product or process.

Product or process changes can impact many areas within a company, including:

Customer service

Tooling

Standards

Suppliers

Master production schedule

Product cost

Service parts

Inventory

Plant layout

Types of Engineering Change Order (ECO) Approval Process:

Standard Approval process:

When an ECO type is assigned with this workflow, all ECOs of this type launch this approval workflow when submitted for approval. The approval list identified on the ECO is used as the list of stakeholders. However, when ONE of these stakeholders approve their notification, the ECO gets approved without waiting for the rest of the approvers to approve the same.

ERES Approval process:

This is an Electronic record and Electronic signature based approval workflow. Here, the approval of the notification requires the stakeholder to electronically sign using their logon credentials. In other words, only EBS users can be used in the list here. Also, different from the Standard approval workflow, this approval process waits for all stakeholders to complete approving their notifications before the ECO gets to approved status. If anyone rejects, the ECO gets rejected.

Voting approval process:

This is similar to ERES process in which all stakeholders need to respond but the ECO is not rejected when anyone rejects it. However, the majority wins (More approvers=ECO approved).

Engineering Change Order – Setup Steps:

Prerequisites: Employee Creation, Inventory, Purchasing, Engineering & BOM Setups

1. Create Approval List

2. Create Change Reasons

3. Define ECO Auto Numbering

4. Define ECO Priorities

5. Define ECO Change Types

6. Set Profile Options

Implementing Engineering Change Order Flow with a Standard Approval Process:

Here for an example, let us consider a Parent Bill consist of Child Bills and the Child Bills consist of individual Parts.

Parent Bill as “B 100 – Galaxy Grand” consist of

S no	Part Number	Description
1	B 101	Panel Assy
2	B 104	Flip Cover
3	B 105	Mother Board Assy

Child Bill “B 101 – Panel Assy” consist of

S no	Part Number	Description
1	B 102	Back Panel
2	B 103	Back Panel

Child Bill “B 104 – Flip Cover” consist of

S no	Part Number	Description
1	B 120	Flip Cover OSP

Child Bill “B 105 – Mother Board Assy” consist of

S no	Part Number	Description
1	B 106	IC Chip
2	B 107	Memory Card
3	B 108	Screw
4	B 109	Key Pad

  

ECO Creation Process:

To implement an ECO to replace the part number B 110 instead of B 109 (Key Pad) in the Child Bill – B 105.

Navigation:

Engineering > ECOs > ECOs

Define all the fields in the ECO Form & Click Revised Items Button

Define the Parent Part number details in the Item Details Tab & define the revision items in the Revised Components.

Once the ECO is saved, the status of the ECO will be "Approval Requested"

Now a notification will forwarded to the Approvers to Approve the ECO implementation thru Workflow

After Approval from any one of the Approver the ECO will get Approved status

Then query the ECO & click implement from Tool bar to implement the ECO.

Query the Child Bill in Bill of Material form & now the part number would have been replaced.

In the ECO Tab the ECO number details will be available.

This is the process of implementing the ECO using Standard Approval Process.