© 2009 Oracle Corporation – Proprietary and Confidential

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 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)

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 ATTENTION – AUDIO Options

You can
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Voice Streaming – Audio Broadcast

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Type your questions into WebEx Q&A panel
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• Connect details you will find at next slide

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 ATTENTION – AUDIO INFORMATION
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Teleconference Connect details:

1. teleconference ID: 65014577
2. UK standard International:+44 1452 562 665
3. US Free Call: 1866 230 1938
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5. Global Toll-Free Numbers MOS (DOC ID1148600.1)

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 <Insert Picture Here>

Sourcing in Purchasing
Himabindu Kuchana
Principal Technical Support Engineer

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 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)

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 AUDIO INFO - Teleconference

Teleconference Connect details:

1. teleconference ID: 65014577
2. UK standard International:+44 1452 562 665
3. US Free Call: 1866 230 1938
4. US Local call: 1845 608 8023
5. Global Toll-Free Numbers MOS (DOC ID1148600.1)

VOICESTREAMING IS AVAILABLE

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

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 3
Send your question

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Who to ask?

Q&A panel

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type your question here

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your question pop-up here

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 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 Oracle’s products
remains at the sole discretion of Oracle.

© 2010 Oracle Corporation – Proprietary and Confidential

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 <Insert Picture Here>

Sourcing in Purchasing
Himabindu Kuchana
Principal Technical Support Engineer

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 Agenda
Introduction to Sourcing
Sourcing Rules <Insert Picture Here>

Approved Supplier list

Automatic Sourcing
Automatic Generation of Sourcing Rules/ASL
PO Create Documents Workflow
Demo
Tables involved in Sourcing
Additional Resources

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 <Insert Picture Here>

Introduction to Sourcing

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Sourcing in Procurement

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 Sourcing in Procurement
Oracle Purchasing provides a mechanism to automatically
source your requisitions and purchase orders to appropriate
agreements, which exist with different suppliers.

The business needs of Sourcing are

 Automatically default supplier and pricing information onto
requisition lines
- Sourcing Rules
- Approved Supplier list
- Automatic Document Sourcing
 Source the item from negotiated purchase agreements
 Reduce manual intervention

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Sourcing Rules

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 What is a Sourcing Rule?
Sourcing rules define the inventory replenishment method for a single
organization or all the organizations in the enterprise.
 Local Sourcing Rule
 Global Sourcing Rule

Sourcing Rule define date effective sourcing strategies,combining

replenishment sources with allocation percentages and rankings.

A replenishment source is:

 an inter-org transfer (Transfer from)
 the replenished org that manufactures item(Make At)
 an external supplier (Buy from)

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 Sourcing Rule
Oracle Products using Sourcing Rule

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Defining Sourcing Rules

Significance of fields:

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Creating Sourcing Rule Assignment

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 Creating sourcing Rule assignment

Significance of the profile option MRP: Default Sourcing Assignment Set.

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 Assignments Hierarchy
Assignment scope Sourcing Mechanism
Global Global sourcing rule

Organization Local Sourcing Rule

Category of Item Global sourcing Rule

Category of items in an Local Sourcing Rule

Organization
Item Global Sourcing Rule

Items in an organization Local sourcing Rule

Global Sourcing rule is the weakest and Local Sourcing

Rule for item in an organization is the strongest.

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Approved Supplier list

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What is Approved Supplier List(ASL)

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 Defining Approved Supplier List(ASL)

Data stored in a controlled global repository containing relevant

details about each ship-from/ship-to/item/supplier relationship
is known as an Approved Supplier List.

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 Approved Supplier list statuses

Supplier Status

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ASL Common Header Attributes

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 Sourcing Globally/Locally:

When multiple ASL entries exist, the following hierarchy

which will be used to determine which ASL will be used:
Item/Supplier/Global
Item/Supplier/Supplier Site/Global
Item/Supplier/Local
Item/Supplier/Supplier Site/Local

Item/Supplier/Global ASL is the weakest and

Item/Supplier/Supplier Site/Local ASL is the strongest.

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 Defining Supplier/Item Attributes
Significance of fields like:Purchasing UOM,Release Method,Price
Update Tolerance,Source Documents tab

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Automatic Sourcing

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 Overview of Automatic Sourcing

• Setting the profile option PO: Automatic Document

Sourcing to Yes enables Purchasing to default source
documents automatically rather than specifying source
documents in the ASL/manually.

• If you use Automatic Document Sourcing, the most recent

blanket purchase agreements ,quotations and contracts
will be used as reference documents on purchase
documents.

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 <Insert Picture Here>

Automatic generation of
Sourcing Rules/ASL

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 Generation of ASL/Sourcing Rules
during BPA approval
• Oracle Purchasing enables the automatic creation of
Sourcing Rules, Sourcing Rule Assignments and
Approved Supplier List entries during Blanket Agreement
approval submission with the help of new Profile Option
“PO: Allow Auto-generate Sourcing Rules and ASL”.

• The default value for profile option "PO: Allow Auto-

generate Sourcing Rules and ASL“ is 'None'. In order to
activate this feature, the profile option value needs to be
set to either "Create Only" or "Create and Update".

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Generation of ASL/Sourcing Rules
during BPA approval

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Creation of SourcingRule/ASL - 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 and ASL entries.

PDOI process calls the API

PO_CREATE_SR_ASL.create_sourcing_rules_asl
to create sourcing rules and Approved Supplier list.

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Creation of SourcingRule/ASL -PDOI
PDOIthroughPDOI

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 Concurrent Program to generate
Sourcing rules and ASL
The new concurrent program ‘Generate Sourcing Rules
and ASLs from Blanket Agreements’ enables creation and
updation of Local/Global Sourcing Rules and ASL’s for a
given Blanket/Global agreement.This programs calls the
below API:
PO_CREATE_SR_ASL.create_sourcing_rules_asl

The program creates the SR’s and ASL’s for each line on
the agreement. The program will only run if the Document
Archival option is ‘Archive on Approve’.

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Generate Sourcing Rules and ASLs
from Blanket Agreements

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 <Insert Picture Here>

PO Create Documents
Workflow

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 Configuring PO Createdoc Workflow
• The PO Create Documents Workflow is used in Sourcing to
create the releases from BPAs and standard purchase
orders from Quotations/Contracts automatically.
The wft file involved is poxwfatc.wft. Follow the below steps
in order to configure the PO Create Documents Workflow:
• Open the Workflow file in Workflow Builder.
• Expand Attributes.
• Double Click on the attribute ‘Is Automatic Creation
Allowed?’
• Specify the Value as ‘Y’

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Configuring PO Createdoc Workflow

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 Create Doc Workflow Attributes

Following attributes need to be set for the creation of

documents in Purchasing:
A) Generating Release from a BPA in Sourcing

B) Generating Standard Purchase Orders from Quotation

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 Create Doc Workflow Attributes
C) Generating Standard Purchase Order from a Contract
Purchase Order in Procurement

The attribute SEND_CREATEPO_TO_BACKGROUND should

be set to Y in Req approval if the PO Autocreation has to be
sent to Background.

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Demo

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Tables /Views in Sourcing

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Tables/Views involved in Sourcing
 PO_APPROVED_SUPPLIER_LIST
 PO_ASL_ATTRIBUTES
 PO_ASL_DOCUMENTS
 PO_ASL_STATUSES
 PO_ASL_STATUS_RULES
 MRP_SOURCING_RULES
 MRP_ASSIGNMENT_SETS
 MRP_SR_ASSIGNMENTS
PO_ASL_ATTRIBUTES_VAL_V (view) used in
Createdoc workflow

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 <Insert Picture Here>

Additional Resources

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 Additional Resources

Auto Sourcing And Auto Create/Release Checklist (Doc ID

417966.1)
How To Diagnose Issues With Approved Supplier List And
Sourcing Rules In Purchasing (Doc ID 557825.1)
How To Diagnose Issues In Autocreate (CREATEPO)
Workflow (Doc ID 559009.1)
Create Documents Workflow FAQ (CREATEDOC /
CREATEPO) (Doc ID 224100.1)

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 3
Send your question

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Q&A panel

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type your question here

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 Further Info & Help

• Advisor Webcast Archived Recordings (Doc ID 740964.1)

• Advisor Webcast Current Schedule (Doc ID 740966.1)
• Procurement Advisor Webcast Calendar (Doc ID 1083713.1)
• MOS Community <Procurement Community>
https://communities.oracle.com/portal/server.pt/community/procurement/230

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 Have you started to share your valuable experience with
the Procurement Community?
https://communities.oracle.com/portal/server.pt/community/procurement/230

© 2010 Oracle Corporation – Proprietary and Confidential

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 Upcoming Webcast

1. Using iSetup to Manage Your June 05, 2012 Document 1448126.1

Setup Accross Instances
2. Punchout in iProcurement June 26, 2012 Document 1448447.1

Review the Procurement Advisor Webcast Calendar (Doc ID

1083713.1) to know about the upcoming webcast, also to download
the previous procurement’s webcasts recording links and webcast’s
materials

© 2010 Oracle Corporation – Proprietary and Confidential

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 THANK YOU

© 2010 Oracle Corporation – Proprietary and Confidential

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