2009 Oracle Corporation Proprietary and Confidential

AGENDA

Presentation approximately 45 minutes Q&A Session approximately 15 minutes

Web attendees can ask questions via Q&A panel Phone attendees can ask questions via Q&A panel or phone (operator assisted)

ATTENTION AUDIO Options

You can either listen the audio broadcast on your computer or join teleconference (dial in)

Voice Streaming Audio Broadcast

Listen only mode Advantage: no need to dial in What about Questions? Type your questions into WebEx Q&A panel If you prefer full audio access in order to ask questions directly, please connect to our teleconference Connect details you will find at next slide

ATTENTION AUDIO INFORMATION

Teleconference Connect details: 1. 2. 3. 4. Conference ID: 18153716 UK Standard International: +44 (0) 1452 562 665 (UK Dial In) Toll free Dial In US/Canada : 1866 230 1938 List with national toll free numbers is available in Doc ID 1367584.1

You can view this info anytime during the conference using Communicate > Teleconference > Join Teleconference from your WebEx menu

<Insert Picture Here>

Oracle ASL-Sourcing And Advanced Pricing in Procurement

Marwa Abd El Rahman (Technical Support Engineer)

AGENDA

Presentation approximately 45 minutes Q&A Session approximately 15 minutes

Web attendees can ask questions via Q&A panel only Phone attendees can ask questions via Q&A panel or phone (operator assisted)

AUDIO INFO - Teleconference

Teleconference Connect details: 1. 2. 3. 4. Conference ID: 18153716 UK Standard International: +44 (0) 1452 562 665 (UK Dial In) Toll free Dial In US/Canada : 1866 230 1938 List with national toll free numbers is available in Doc ID 1367584.1

You can view this info anytime during the conference using Communicate > Teleconference > Join Teleconference from your WebEx menu

Send your question

2 Who to ask? Q&A panel 1 type your question here

your question pop-up here

Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle.

2010 Oracle Corporation Proprietary and Confidential

<Insert Picture Here>

Oracle ASL-Sourcing And Advanced Pricing in Procurement

Marwa Abd El Rahman (Technical Support Engineer)

Agenda
Sourcing introduction Setup steps Demo for sourcing How to troubleshoot issues related to sourcing Advanced pricing introduction and its integration with oracle Purchasing Setup steps Demo for advanced pricing References Q/A

Overview of Sourcing in Purchasing

Requisitions Catalog content Management Purchase orders

Ordering RFQs/ Quotations Sourcing Receiving Analysis

Invoice/ Payment Supplier management Reporting Supplier performance

Why do we use ASL-Sourcing ?

Automatically default supplier and pricing information onto Document Lines Source the item from negotiated purchase agreements Reduce manual intervention

What is ASL and Sourcing Rule? Approved Supplier Lists

Commodity

Approved Supplier List

Items

Ship-to organization or global organizations

Supplier site

What is ASL and Sourcing ? (continue)

Sourcing rules define inventory replenishment method for either a single organization or all organizations in the enterprise. They describe sourcing supply; for any organization, they answer the question where do I get part A from? User defines rankings and % allocation for replenishment sources in the form of Sourcing Rules.

What is ASL and Sourcing ? (continue)

Gears Sourcing Rule

Assignment

Supplier Scheduling

Supplier A 60 % Rank 1

Document

Item GR100

Supplier B 40 % Rank 1

Supplier A Site Contact

What is ASL and Sourcing ? (continue) Assign sourcing Rules

Products use Sourcing Rules

Planning
Purchasing

Supplier Scheduling Supply Chain Planning

Setup steps
Define Item or category Define Supplier/Supplier Site Create Quote or Blanket Purchase agreement Define ASL Define Sourcing Rule Assign Sourcing Rule to Assignment Set

Demonstration

APIs
Use Purchasing Document Open Interface process. You can import Global Approved Supplier List (ASL) through the Purchasing Document Open Interface (PDOI). Import Price Catalog to import blanket purchase agreements or catalog quotations into Purchasing, you have the option of choosing Yes or No in the Create Sourcing Rules field in the Parameters window to enable Purchasing to create sourcing rules out of the supplier, item, and document information that the supplier sends.

Troubleshooting Details
Problem : Supplier and Supplier site information are not Defaulting On the Purchasing Document
Suggested actions: You need to check the followings:
1) Is the item number populated on the requisition? One-time items are not autosourced. Sourcing rules and ASL records that are defined by category, is used only when item number on the requisition is populated and there is no sourcing rule and ASL defined for that item. 2) Is the Profile option MRP: Default Sourcing Assignment Set populated? 3) Is there an assignment for the item or category in the assignment set pointed by the profile option MRP: Default Sourcing Assignment Set? 4) Does the organization on the assignment set match to the destination organization on the requisition line or is the organization on the assignment set blank? 5) Does the organization on the Sourcing Rule match to the destination organization on the requisition line or is the Sourcing Rule defined as All Orgs? 6) Is the Sourcing Rule effective date current?

Troubleshooting Details (Continue)

Problem: Source document is not defaulting or the incorrect document has defaulted
Suggested Actions

You need to check the followings:

1) What is the Profile option Value set 'PO: Automatic Document Sourcing'? If set to Yes , It will pick the most recent created BPA

2)Is there an approved Global BPA and the Global BPA is enabled in the requesting operating unit?
3)Is the sysdate inside source document effective date range?

Advanced Pricing Overview

Oracle Advanced Pricing is a flexible and extensible pricing engine that supports ebusiness applications by providing a variety of pricing models from very simple to complex. Using Oracle Purchasing with Oracle Advanced Pricing allows buying organizations to create pricing rules and execute these rules during requisition and purchase order creation.

Case Study
A Pancake Emporium purchases syrup from a Syrup Company. Different volumes have different prices Different grades have different prices

Purchasing agents are manually tracking the supplier prices due to the complex pricing. Due to variety of reasons, the price on the purchase order could be incorrect. The Accounts Payable group has recurring issues with invoice discrepancies between the purchase order and the invoice.

Examples of Pricing scenarios that can be modeled in Oracle Advanced Pricing include:
Capturing the purchase price for a specific item. Supporting e.g 10% promotional discount on items offered by one of your suppliers for a given date range. Pricing items based on user-defined attributes, such as the width or thickness of an item.

Pricing Engine Process

What is being Priced?

Who is asking for the price? (Qualifiers)

How is the base unit price going to be adjusted? (Modifiers)

What are Price Lists and Modifiers?

Advanced Pricing provides a powerful set of tools in the form of price lists, modifiers and formulas to model the most challenging pricing scenarios. Price lists allow enterprises to capture and maintain the purchase price of an item, while modifiers are used to create price adjustments, such as discounts and surcharges.

What is Formula ?
Formulas are mathematical expressions that let you define rules to dynamically determine the price on a transaction based on attribute values on the transaction. For example we can instruct the pricing engine to calculate discount based on a formula attached to discount Line Formulas can be linked to a price list line or a modifier line

Formulas Types

Static Calculation

1+2*3/4

Run Update formula prices concurrent program

Dynamic Calculation

Pricing Engine

Setup Steps (Continue)

Item and/or Purchasing Category (required) Contract Agreement (required) Price List (optional) Modifier (optional) Approved Supplier (optional)

Demonstration

References
1) How To Diagnose Issues With Approved Supplier List And Sourcing Rules In Purchasing (Doc ID 557825.1). 2) ASL Sourcing to Requisitions Setup and Usage Guide (Doc ID 175935.1). 3) Oracle Purchasing Integration with Oracle Advanced Pricing Release 11.5.10 - An Oracle White Paper (Doc ID 394490.1). 4) ASL-Sourcing in Procurement - An Oracle White Paper (Doc ID 285470.1). 5) FAQ: Using Advanced Pricing in Purchase Orders and Requisitions (Doc ID 357657.1) 6) Oracle Advanced Pricing Users Guide Release 11i Part No. A90830-04

Send your question

Who to ask? Q&A panel

type your question here

Further Info & Help

Procurement Advisor Webcast Calendar (Doc ID 1083713.1) Oracle Procurement News Current Edition (Doc ID 111111.1) Advisor Webcast Archived Recordings (Doc ID 740964.1) Advisor Webcast Current Schedule (Doc ID 740966.1) MOS Community <Procurement Community>

Start sharing your valuable experience with the Procurement Community

Upcoming Webcast

Purchasing & Costing Accounting

Jan 2011

THANK YOU

2010 Oracle Corporation Proprietary and Confidential