Purchase Order Types In Oracle Purchasing

Purchase Order Types
Oracle Purchasing provides the following purchase order types: Standard Purchase Order, Planned Purchase Order, Blanket Purchase Agreement and Contract Purchase Agreement. 


You can use the Document Name field in the Document Types window to change the names of these documents. For example, if you enter Regular Purchase Order in the Document Name field for the Standard Purchase Order type, your choices in the Type field in the Purchase Orders window will be Regular Purchase Order, Planned Purchase Order, Blanket Purchase Agreement and Contract Purchase Agreement

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. If you use encumbrance accounting, the purchase order may be encumbered since the required information is known

Blanket Purchase Agreements (BPA)
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,

PO Approval Hierarchy Methods

Oracle Purchasing offers three methods to route documents for approval..

1. Position Approval hierarchy
2. Employee/Supervisor approval hierarchy
3. Advanced Approval Support for Requisitions

1. Position Approval hierarchy
Position Hierarchies are hierarchies that have a position relationship. By position, we mean position that are attached to employees. Purchasing utilizes positions as a roadmap to determine how and where documents will be routed once the approval process has been initiated. It is first necessary to have created all positions that are going to be used in the system. Once all positions have been created, it is necessary to build the position hierarchy. Each position has approval limits, so when a purchase order exceeds the limits of the position, the purchase order is forwarded onto the next position in the Hierarchy.

2. Employee/Supervisor approval hierarchy
Employee/Supervisor approval hierarchy uses the employee-supervisor relationships.
To implement this form of approval routing, you need only to define jobs. The job will then serve as the tie to the Approval group, and based on the approval limits from the Approval Group, the Document will either be Approved or Forwarded to the Employees’ Supervisor. If no Supervisor

PO Approval Hierarchy Forward Method

If Position Hierarchy is used and two employees are attached to a particular position, then the application will select the forward-to person based on alphabetical name order.

Below is an example for better understanding.

Abdulla (Clerk) and couple of more clearks report to position Manager (Materials). James and Smith have the position Manager (Materials) attached.

In the above scenario, when Abdulla (Clerk) chooses the Approve button without entering a forward-to person, and the next position above the clerk is the Manager (Materials), the document would be routed to James
James  is selected by the system because the system will choose the employee assigned to the position in alphabetical order, and since James comes before Smith, James is selected. Therefore, unless the clerk selects a specific person to forward the document to, the document will always be routed to the first person alphabetically assigned to the position

Encumbrance / Budgetory Control In Oracle Purchasing

You can define encumbrance accounting or budgetary control in Financial options window:
Navigation: AP or PO ----> Setup--> Organizations --> Financial Options.

In order to use encumbrance accounting or budgetary control, you must install Payables, Purchasing, and General Ledger modules. You may go to encunbrance region to enable encumbrance accounting and to specify the default encumbrance types which Payables module assigns to your invoices, and Purchasing module assigns to your requisitions and purchase orders.

If you enable encumbrance accounting or budgetary control, Purchasing creates
encumbrances when you reserve funds for a requisition or purchase order. If you use the perpetual accrual method in Purchasing, it reverses the purchase order encumbrances when you inspect, accept, and deliver the units. If you are using the periodic accrual method in Purchasing, Payables reverses the purchase order encumbrances when you create accounting

How To Include Only "Inventory items" In a Store at iProcurement?

Complete the following steps to setup a Store for an Internal Items Catalog

• Login to iProcurement Catalog Administrator
• Click on Manage Catalogs
• Create Catalog - Select local Catalog
• Select the checkbox titled " Include items without suppliers in this catalog.  For example, internally orderable items "
• Press Submit
• Press Ok
• Click on Manage Stores
• Click on Create Store
• Name your Store