Overview of Oracle Procurement Modules

Oracle EBS Procurement consists of several integrated modules.

Core Modules

• iProcurement - Self-service requisitioning
• Purchasing - Purchase Orders, RFQs, Quotations
• iSupplier Portal - Supplier collaboration
• Sourcing - Strategic sourcing and negotiations
• Supplier Lifecycle Management (SLM) - Supplier qualification and management

Supporting Modules:

• Payables - Invoice processing
• Inventory - Stock management
• Receiving - Goods receipt

Setup Components

Financial Options:

Setup Navigation: Purchasing > Setup > Organizations > Financial Options

Key Setups:

1. Operating Unit - Legal entity for transaction processing
2. Business Group - HR organization
3. Inventory Organization - Warehouse/stock location
4. Purchasing Options - Control purchasing behavior

Example:

• Operating Unit: US Operating Unit
• Inventory Org: Seattle Warehouse
• Set "Use Approval" = Yes to enable approval workflows

Document Types & Numbering

Standard Document Types:

• Standard PO - Regular purchases
• Planned PO - Blanket with scheduled releases
• Blanket PO - Agreement without quantities
• Contract Agreement - Terms only, no items

Example Setup:

Document Type: Standard Purchase Order

Numbering: Manual/Automatic

Format: PO-2025-####

Security Level: Hierarchy/Public/Private

Purchase Requisition (PR)

Creation Methods:

1. Manual entry in Purchasing
2. iProcurement self-service
3. Min-Max planning
4. Reorder point planning
5. MRP/Planning suggestions

Requisition Types:

• Internal (stock items)
• Purchase (external procurement)

 

Purchase Order (PO)

PO Creation Process:

Method 1: Auto Create from Requisition

Navigation: Purchasing > Purchase Orders > AutoCreate
- Select approved requisitions
- Group by: Supplier, Site, Buyer
- Create PO automatically

Method 2: Manual PO Creation

Navigation: Purchasing > Purchase Orders > Purchase Orders

PO Header Information:

• Supplier Name and Site
• Buyer
• Currency
• Payment Terms (Net 30, 2/10 Net 30)
• FOB (Free on Board)
• Freight Terms

PO Line Details:

• Item/Description
• Category
• Quantity
• Unit Price
• Need-by Date
• Destination Type (Inventory/Expense)
• Charge Account

PO Shipment:

• Ship-to Location
• Requestor
• Receipt Routing (Standard/Inspection/Direct Delivery)

PO Approval Process

Approval Hierarchy:

• Position-based
• Supervisor-based
• Amount-based

Approval Statuses:

• Incomplete
• Approved
• In Process (awaiting approval)
• Requires Reapproval

Receipt Types

Standard Receipt:

• Against PO
• Direct delivery to inventory
• Three-way match (PO-Receipt-Invoice)

Inspection Receipt:

• Quality check required
• Accept/Reject decision
• Move to inventory after acceptance

Receipt Routing

1. Standard Routing (2-Step): Receive → Deliver

2. Inspection Routing (3-Step): Receive → Inspect → Deliver/Return

3. Direct Delivery (1-Step): Direct to final destination (expense)

Return to Supplier/Vendor

Reasons for Returns:

• Defective items
• Wrong items shipped
• Damaged in transit
• Over-shipment

Thank You,

Pratip Chatterjee