Oracle Purchasing
Requisition:
Requisition is a document where the need for the material is specified and is raised by an employee.
Types of Requisitions.
1. Internal Requisition: Transferring the material from one dept to another within the same company and not from the third party (if the reqt is fulfilled within the company) is known as Internal requisition.
2. Purchase Requisition: If we want to purchase the material from outside vendor then we raise Purchase requisition.
RFQ (Request for Quotation):
The purchasing manager asks the supplier to send the quotation for the required material with the help of RFQ.
Types of RFQ:
1. Standard RFQ: The normal quotation is the standard rfq.
2. Bid RFQ: It is raised when we are planning to purchase heavy material which lasts longer.
3. Catalog RFQ: When we request the supplier to send catalog of items along with the quotation then it is called as catalog rfq.
Quotation:
A statement of the price, terms and conditions of sale, a supplier offers us for an item or items. It is a detailed description of goods or services offered by the supplier.
Types of Quotations:
1. Standard Quotation
2. Bid Quotation
3. Catalog Quotations
Purchase Order:
It is a statement which contains the required items, quantity, price,date when we need and the location where we need.
Types of Purchase Orders:
Blanket PO
Contract PO
Planned PO
Standard PO
Standard PO:
It is used for only one time purchase of various items when we know the details of goods or services we require, estimated cost, qty, delivery schedules and accounting distributions.
Blanket PO:
It is raised when we know the details of goods or services that we plan to buy from a specific supplier in a period, but we don’t know the details of delivery schedules.
Contract PO:
Here we don’t know any information regarding items but just know the terms and conditions.
Planned PO:
A planned po is along term agreement committing to by items or services from a single source. Here we know all the details.
⦁ Item details
⦁ Defining item category and its segment values
⦁ Registering the item category.
⦁ Define category sets and item.
⦁ Employee
⦁ Defining job and position of the employee
⦁ Defining employee and his approval limits
⦁ Defining the employees as buyers
⦁ Define and assign the approval groups to the employees
⦁ Supplier
⦁ Define and approve the supplier
⦁ Define the supplier list
Flow of Purchase Order:
⦁ Raise the requisition.
⦁ Check whether the requisition is approved or not.
⦁ Raise RFQ.
⦁ Raise the quotation.
⦁ Raise the purchase order.
⦁ Receipts
⦁ Inspect the goods
Matching approval levels:
2-Way 3-Way Matching 4-Way Matching
Invoice à P.O. Invoice-à P.O. Invoice-à P.O.
Invoice à Receipts Invoice à Receipts
Invoice à Inspect
