Purchasing Setups

  Basics Setups in Purchasing:

1.Financial Options

2.Purchasing Options

3.Receiving Options

4.Document Types

5.Job

6.Position 

7.Employee

8. Buyer

9.Position hierarchy

10. Approval Group

11.Approval Assignment

12. Supplier

13. Open Purchase periods.

-------------------------------------------------------------------------------

1.Financial Options

Oracle Purchasing>Setup>Organizations>Financial options.

Create new and select your operating unit.

In Accounting tab choose the 3 mandatory fields . And in supplier purchasing tab choose your IMO if you have many inventory units.

In Human resources tab if you want to assign hierarchy. Select check box use approval hierarchy

Attach your Master Organization in -Inventory Organization 

Encumbrance can be enabled for PR or PO which in turn we call it as "Budgetting" enable or disable flags.

Continue..

Use Approval Hierarchy- Enable this flag if you want to use the position hierarchy for your organization.

Employee Number Generation can be updated as "Automatic" or "Manual" based on business needs.

2.Purchasing Options

Oracle Purchasing >Setup>Organization>Purchasing Options

Click and it will take you to webpage. Fill the mandatory fields .

*Expense Ap accural account

*Document Numbering provide the numbers for below.

*RFQ Number

*Quotation Number

*PO Number

*Requisition Number

Continue..

3.Receiving Options

Oracle Purchasing>Setup>Organizations> Receiving Options

Receiving option will be configured while we create inventory organization. If not defined already it can be defined .

Fill all the mandatory fields.  

4.Document Types

Oracle Purchasing >Setup>Purchasing >Document Types.

You can even create your own document type or modify the existing document type as per business need.

5.Job

Oracle Purchasing >Setup>Personnel>Jobs.

Click New and create Job.

In Name enter Job code and Job name.

6.Position / Position hierarchy

Oracle purchasing > Setup> Personnel> Positions.

Create different position names  Ex: Jr analsyst ,Sr analyst ,Assistant Manager , Manager. We are creating more position to assign hierarchy.

Choose your BG ,Job and location. Likewise create different positions.

7.Employee

HRMS Manager >People >Enter and Maintain.

Click new and enter the employee details . In action field select employment type as Employee

Continue

In assignment button assign the Job, Position.

8. Buyer

Oracle Purchasing > Setup> Personnel> Buyers

Click on add . Select the Employee from LOV and add him as Buyer to perform the Purchasing transactions.

8. Position Hierarchy

Oracle Purchasing > Setup> Personnel> Position Hierarchy

Provide new name for position  hierarchy . Then go into position select the top person in the company which you have created during position creation.

Assign the Subordinates against each position to form a hierarchy for your PO and PR Approvals.

10. Approval

Oracle Purchasing >Setup>Approvals >Approval Groups

Create various approval group as shown below

Continue

11.Approval Assignment

Oracle purchasing >Setup>Approvals >Approval assignments.

Select the positions and assign the approval group to that person.

12. Supplier

Oracle Purchasing >Supply base > Suppliers.

Create suppliers . Enter supplier name and in address book create address .

13. Open Purchase periods.

Oracle Purchasing >Setup>Financials>Accounting >Open close period.

In open period click the period you like to open and choose the month and it will open the period for transactions.