Documente Academic
Documente Profesional
Documente Cultură
Bill Pick
Fujitsu America, Inc.
Introduction
Ever wonder if you really are utilizing Oracle Procurement to its full potential? Or how all those ASL (Approved
Supplier List), Sourcing Rules, Security Rules, and other Purchasing setups work together to make the most out of
Procurement for your organization? This paper will explain more details surrounding the Oracle Release 12
functionality for Sourcing Rules and Assignments, Automatic Sourcing, Approved Supplier Lists, and Security and
Document Control, as well as other key setup decisions. It will also mention some new functionality in the latest
Oracle releases, and best practices for setting up Oracle Procurement.
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Copyright 2014 by Bill Pick, Fujitsu America, Inc.
Exhibit 1
Once the Sourcing Rule is created, it must be assigned to an item/category in the Sourcing Rule Assignments form
shown in Exhibit 2. Rules can be assigned either to items or item-organization combinations. The same rule may be
applied to many items or categories. It should be noted that Purchasing uses only one Assignment set, so any
sourcing rules relating to purchased parts should be assigned in that one set. Planning uses one assignment set per
plan name.
Exhibit 2
Once the Sourcing Rule is created, it must be assigned to an item/category in the Sourcing Rule Assignments form
shown in Exhibit 2.
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Blanket Purchase Agreements are used when you know the items, pricing, time frame, and supplier for purchasing a
set of items but do not yet know detailed delivery information. Blanket Purchase Agreements can be made either
global or local, with local agreements taking precedence over global agreements (if both exist for the item and
supplier). Once established, Blanket Releases are then created against the Blanket Purchase Agreement with
specific quantities and dates.
Contract Purchase Agreements can also be created as local or global, but they are an agreement on terms and
conditions for a supplier without specifying what items will be purchased. If you are using Advanced Pricing for
Purchasing, these agreements can be used in conjunction with price lists, modifiers, and qualifiers to establish
pricing. These agreements are then referenced when creating a Standard Purchase Order in order to capture and
track the amount of total spend against the agreement.
Quotations come in three different types Catalog, Standard, and Bid Quotations. Catalog Quotations are typically
for high volume buys and can contain price break information. Standard Quotations are similar to Catalog
Quotations, except they are typically for occasional buys rather than high volume buys. Bid Quotations are intended
to be used for one time buys for a fixed quantity, location, and date; they also do not contain price break
information.
Automatic Sourcing
Automatic Sourcing can be enabled in Procurement using either Sourcing Rules and Assignments and/or Approved
Supplier List and Supplier-Item Attributes. By setting the Profile Option PO: Automatic Document Sourcing to
Yes, the system will default source documents automatically based on the most current Purchase Agreement or
Quotation for an item-supplier combination. If multiple documents exist, the order of precedence for sourcing on a
requisition (irrespective of creation date) is Blanket Purchase Agreement (Local, then Global), then Contract
Purchase Agreement (Local, then Global), then Quotation. The Document precedence order is the same for
Purchase Orders except Contract Purchase Agreements are not considered.
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Copyright 2014 by Bill Pick, Fujitsu America, Inc.
Supplier/Item Attributes
By clicking on the Attributes button, you can access the Supplier Item Attributes form (Exhibit 4)
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Document Types
Document types are defined to set access, security, and control specifications for the different documents used in
Purchasing. (See Exhibit 6)
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also indicate if you Can Change Forward From for a Requisition and if you can Use Contract Agreements for
Autosourcing. Additionally you can specify a Forward Method (Direct, Hierarchy, etc.) and the Default Hierarchy to
use (if forward method is Hierarchy).
In terms of configuring Document Control for a given Document Type, the two key settings are Security Level and
Access Level. Security level refers to who will have the ability to access a document. Security level options include
Hierarchy (the Document Owner plus Users above them in the hierarchy may access the documents), Private
(Document Owner only may access the documents), Public (Any User may access the documents) and Purchasing
(Document Owner plus Buyers may access the documents). Access Level means for those who have access to a
given document, what level of access do they have? Options are Full (Users can view, modify, cancel, and final
close documents), Modify (Users can view and modify documents), and View Only (Users can only view
documents).
Summary
Oracle Procurement provides a wide range of functionality surrounding Sourcing Rules, Approved Supplier Lists,
Document Control and Security, and many other areas in order to serve a wide range of industries, companies, and
users. As you become more familiar with the configuration options available to you in these and other areas, and
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how they can work together, you can being to solve the Procurement Mysteries in your organization and unlock
the true potential available in Oracle Procurement.
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Copyright 2014 by Bill Pick, Fujitsu America, Inc.