Setup steps for PO
Setup: Procurement (Optional)
Procurement Foundation –>Configure Procurement Business Function
Note: After Click configure Procurement Business function. You got It New popup. Under popup you can select own Business unit either leave it.
Let me go One by one Pre-Requisite setup
Step 1. Setup: Procurement ( Optional )/ Required it depends on organization )
Procurement Foundation–>Manage Payment Terms
Note: This is configuration done by Payable Team
For example if you want to create Payment Term for Knowledge/Practice
- Immediate ( Once you received the material, immediate u r doing )
- Net 45 (In this case, if u received the Material after 45 days you r going to do the payment.)
Watch this to know how to create Pay on receipt Invoice in Oracle Fusion
Here u can also give the discount according to Payment wise for example if customer give the payment within 7 days.
c. 2/10Net 30 (Two percent discount deducted if paid within 10 days, remainder paid 30 days from invoice terms date
>>>If you want to create Payment Terms: First click on + (Create) and then form will open as Create Payment Terms and fill required , under Payment Terms You can create installments , Discounts, Under Set Assignments —-Set code Must be Important, if you have not set code in that case must be select Common.
Carriers Lookup -Purchasing Setup in Oracle Fusion
To get Oracle Instance access please click here
Procurement Foundation –> Manage Carriers lookups
Procurement Foundation –>Manage Carriers
(Shipping Method is define for every carrier. Shipping method, you have to assign two method.
A. Service Level –Different type of service level (Quick Receive, same day, Next day, door to door)
B. Mode of Transport – Mode you are using to deliver the to deliver the material for transportation using Rail, Road
Note: After Click Manage Carriers and the click + (Create) Symbol
Document Numbering setup-Purchasing Setup in Oracle Fusion
Procurement Foundation –>Manage Procurement Document Numbering
Difference between EBS and Fusion Setup: Procurement
In R12 – What is starting number of Requisition are may be quotation/ are may be PO. You can specify what is the starting number that is Mandatory setup in R12
But in Fusion: It is completely optional setup. That means no need to configure
- Procurement Documents Means: It includes Requisition, PO/BPA/CPA, RFQ(Sourcing Documents)
- Except SPO, everything maintain at BU level But SPO we are going to configure at LE level
After Click + (Create)
- If we select Document Type is Requisition, Determinant Type (Determinant type is nothing at what level you are configuring, at BU level we are going to Configuring.) Determinant value is nothing but, a your BU level
- If we select Document Type is Purchase Order, Determinant Type is Sold to LE (So each and every LE you have to configure
So again this is completely optional
Purchasing Line Setup
Procurement Foundation –>Manage Purchasing Line Types
(SIMILAR TO EBS, THERE IS NO ANY CHANGE)
Which type of material add by the user
2 types of Line types available
A. Goods – Quantity Based price ( Nothing but a goods quantity base purchasing)
B. Services – Fixed Price Service Purchasing (Fixed reply base purchasing that is we are preparing services. Best example is—we are using internet connection, here if we are using internet connection. In this case we are not receiving any material. Physical goods are not receiving, just we are using his services.
Document Style Setup
From Procurement Foundation –>Manage Document Style
- You can create any no of document Style
- Generally this document styles are used to control the local field of application and also if you want to hide some of the feature in procurement documents, for that you will go for document style.
- If you want create any document like PO,BPA, CPA any type of document you must first select ,what is your document style
Procurement Agent Setup
Procurement Foundation –>Manage Procurement agents
- This is nothing buyer setup is equal to buyer setup in EBS. Who will create the PO, The person must be the procurement agent.
CLICK ON + (Create) symbol
- Each and every document you can control
Procurement Business Function Setup
Procurement Foundation –>Configure Procurement business function
These are BU level setup, Choose your BU, if you want Default value you can set, Default value always refer your business unit. If you want to change you know very well
- This is sourcing. Nothing but a negotiable
- These are similar to EBS. There is no any change
3 WAY Match
| RECEIVING AREA | INSPECTION | Delivery (S1-sub inventory)—in EBS will called as a delivery/ infusion called as a Put Away | |
| DIRECT DELIVERY—1 STEP PROCESS | Directly deliver in sub -inventory area | ||
| STANDARD RECEIPT—2 STEP PROCESS | First receive the material into receiving area | And second step to deliver the material into sub-inventory area | |
| STANDARD RECEIPT—3 STEP PROCESS | Will receive the material | Quality team they will inspect my material. Maybe out of 10 material. 5 accepted and 5 rejected | Whatever they accepted. Those quantity I am going to delivery into sub inventory. Rejected quantity I am going to set back my supplier |
| DIRECT | 2 WAY MATCHING | PO &INVOICE |
| STANDARD | 3 WAY MATCHING | PO,INVOICE & RECEIPT |
| INSPECTION | 4 WAY MATCHING | PO,INVOICE,INSPECTION & RECEIPT |
- So now purchasing setup I created. But system me allow to create. Yes system will allow you but you cannot create
- If you want to create PO. You know that PO is a official financial document to represent what are the goods you are purchasing from which supplier.
- So first lets go to Supplier setup
We have already provided supplier setup Go on that link
