Setup Steps Oracle Purchasing
The setup steps are as follows:
· System administrator
· Other modules flex fields
· Accounting calendars
· Workday calendar
· Currencies
· Conversion rates
· Set of Books
· Opening and closing accounting periods
· Organizations
· Human resources
· Tax names
· Locations
· Suppliers
System Administrator
Setting up system administrator functions is a required task, and involves setting up system security, defining user names, and defining system printers. User IDs must be defined for all users, and additional responsibilities may also need to be defined. The Oracle System Administrator responsibility will need to be set up to perform this task.
Considerations involved in this step are security and establishing naming conventions to be used throughout Oracle Applications. You must determine which responsibilities should be tied to which users and whether to exclude forms and functions from the standard menu. You must also establish a naming convention for printers and set them up. This lets users know where the printer will be located by simply reading the printer name. You must also determine whether a dedicated printer will be necessary for checks and purchase orders, which usually have special preprinted forms.
Other Module Key Flexfields
This step involves setting up other modules’ Key flexfields related to Oracle Purchasing and Oracle Payables. These Key flexfields include accounting, human resources, and inventory. The accounting Key flexfield must be defined through the General Ledger setup and configuration. Next, set up the four human resources Key flexfields: job, position, grade, and people group. You needn’t set up these flexfields if you already have installed Oracle Human Resources, or if you’re installing in a common application setup (in which case, it will be done during the HR setup). The following inventory Key flexfields should be defined as part of the inventory setup: item catalog, item category and system items. Once you have defined the system items flex field, you must run the Item Flex field view.
Considerations involved in this step involve constructing Key flex fields that have room to grow, that can be used across modules, and that can be validated according to everyone’s need. You must also determine how to maintain valid values, whether to allow dynamic insertions, and how to enforce security.
Accounting Calendars
If you have not defined your accounting calendars in Oracle General Ledger, then you must define them for Oracle Purchasing and Oracle Payables. If you are performing a multi-org implementation of Purchasing and Payables, you may also create more than one calendar.
Whether you need an adjusting period and how to name your accounting period are the two considerations for this setup step. Your accounting calendar is dictated by your business needs, and all Oracle Applications modules share the same accounting calendar, yet they maintain a separate status for each module. For example, an open period in Payables can be a closed period in Receivables.
Workday Calendar
If you have not defined your workday calendars in Oracle Inventory, you must define them for Oracle Purchasing and Oracle Payables. If you are performing a multi-org implementation of Purchasing and Payables, you may also create more than one calendar.
How to name your inventory period and how to create an exception template to filter out nonworking days are the two considerations for this setup step. Your workday calendar is dictated by your business needs, and all Oracle Applications modules share the same workday calendar.
Currencies
If you are planning to use the multi currency features of Oracle, you must also enable the currencies you need. This step is done in Oracle General Ledger.
Determining which currencies you need is the only consideration for this setup step. Oracle Applications has all ISO currencies, but if you have a currency that is not defined, you must define it in Oracle General Ledger.
Conversion Rates
If you plan to use Oracle’s multi currency features, you must also define conversion rate types, daily rates, period rates, and historical rates in Oracle General Ledger.
Determining what kind of exchange rates to use and who will maintain the exchange rates for your company are the two considerations for this setup step.
Set of Books
At least one Set of Books must be defined in Oracle General Ledger in order to use the other modules. Once you have created the Sets of Books, assign responsibilities of Oracle Purchasing and Oracle Payables to the defined Sets of Books.
Considerations for this step, which include whether you want to perform suspense accounting, intercompany accounting, and budgetary control, among others, are covered in the first part of this book.
Opening and Closing Accounting Periods
Next, you must open the appropriate accounting period in Oracle General Ledger. Whether you should open and close the accounting periods is the only consideration for this step. If you open the accounting period, accounting entries and transactions can be entered for the opened accounting period. Open the appropriate inventory and purchasing periods, and open purchasing periods for which you have purchasing activity. Oracle Purchasing will only create journal entries for transactions in an open purchasing period, including creating the correct receipt accrual journal entry. Use the Control Purchasing Periods form to open/close purchasing periods.
Organizations
If you use expense reporting in Oracle Payables, you must define one or more organizations before using Oracle Purchasing and Oracle Payables. Organizations describe and define unique entities within your company, such as manufacturing plants, warehouses, distribution centers, and sales offices. Oracle Purchasing fully supports both centralized and decentralized purchasing for multiple receiving organizations. You can change your current receiving organization at any time with the Change Organization form.
There are multiple considerations for this step. You must determine your company structure, and what kind of security precautions to enforce. In other words, define how you want to segregate data and how you want personnel from one organization to interact with data from another organization. You also need to determine whether you want to centralize or decentralize each Oracle Applications module.
Human Resources
You will need to set up personnel, or human resources information if Human Resources is not installed. This step involves defining employee lookup codes, supplier and employee numbering, positions, position hierarchies, and employees. You must define employees when you define buyers, which is a required step for Oracle Purchasing. You must also define positions, position hierarchies, and employees if you will be using hierarchies for approvals and workflow.
How you want to number your employees and approve purchasing documents are the two considerations for this step. Approving purchase orders can be very complicated, and you can use a purchasing hierarchy for this task. A purchasing hierarchy is a position hierarchy that you can use to determine the relationship between employees when Oracle Purchasing tries to get the next level of approval.
Tax Names
Until now, all common setups have been performed in Oracle Applications modules, with the exception of the procurement modules. The remaining common setup steps are specific to Oracle Purchasing and Oracle Payables. To get to the Setup form, you must sign on as the Operation user and select the Purchasing, Vision Operations (USA) responsibility. The tax name, which you can use when entering tax amounts in payables invoices, defines a specific tax rate and tax account. You must define tax names for each operating unit. To set up tax names, you follow the navigation path Setup : Financials : Accounting: Taxes.
The only consideration for this step is that the tax name you choose be sufficiently descriptive when your users select it within the Payables invoices.
Locations
For purchasing, you must set up locations, which can be defined as ship-to, bill-to, office, internal, or receiving sites. You can follow the navigation path Setup : Organizations: Locations to set up locations.
Suppliers
Suppliers can be created and maintained in Oracle Purchasing or Oracle Payables. You define the suppliers, the supplier sites, and the supplier contacts. Deciding who should maintains suppliers, since you do not want two departments within your organization to duplicate maintenance of the supplier master, is the primary consideration for this step. You must also establish and maintain a naming convention so that your users know how to select existing suppliers

Back to Back Order

Back to Back Order

Create an item with item template “Purchased item”

Give list price in purchasing (T)

Define “Buy” in General Planning (T)

Enable Assemble to Order, Internal Ordered and Internal Orders Enabled

Create a Transaction type (Order/Line) for Back to Back


Line

In Shipping (T), define Warehouse

In Finance (T), define the below

Don’t take first line. It is defined wrong.


Enter a Sales Order

Once Booked, Status would be Supply Eligible

Then go to Actions=>Progress Order=>Create Supply Order Eligible


Then, you can find Status as “PO-ReqCreate”

Go to Purchasing responsibility, you can find approved requisition for your Back to
Back order




Then, Autocreate PO and Approve it.

Receive the Item (GRN)


(Once GRN done, you will find “PO Created” in Order status)
Once the item is received in the inventory, Go to OM responsibility and querty the sales order in which you will find status would be “Awaiting Shipment”

Then do “Pick Release” and “Ship Confirm” and run “Workflow Background Process”


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