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Oracle E-Business Suite 12 Financials Cookbook
Oracle E-Business Suite 12 Financials Cookbook

Oracle E-Business Suite 12 Financials Cookbook: Take the hard work out of your daily interactions with E-Business Suite financials by using the 50+ recipes from this cookbook

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Arrow left icon
Profile Icon Yemi Onigbode
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Paperback Aug 2011 384 pages 1st Edition
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Oracle E-Business Suite 12 Financials Cookbook

Chapter 2. Purchasing Items in Procurement

In this chapter, we will cover:

  • Raising Requisitions for Items

  • Approving Requisitions

  • Creating Suppliers

  • Creating Purchase Orders

  • Receiving Items

  • Reviewing Procurement Accounting Transactions

Introduction

Items that are sold in an organization are manufactured or purchased. In this chapter, we will look at how to purchase Items in procurement. Let's start by looking at the procurement process.

The following diagram details the procurement process:

  1. 1. Requester completes the requisition based on demand. Requisition creation can be automated through the Requisition Import program, based on demand from various sources. For example, drop shipments in Order Management and min-max planning in Inventory.

  2. 2. The Approver approves the requisition.

  3. 3. The Supplier is selected based on business sourcing rules, including Request for Quotations (RFQ). If the supplier does not exist, a new supplier is created.

  4. 4. The Procurement team (buyers) creates the purchase order...

Introduction


Items that are sold in an organization are manufactured or purchased. In this chapter, we will look at how to purchase Items in procurement. Let's start by looking at the procurement process.

The following diagram details the procurement process:

  1. 1. Requester completes the requisition based on demand. Requisition creation can be automated through the Requisition Import program, based on demand from various sources. For example, drop shipments in Order Management and min-max planning in Inventory.

  2. 2. The Approver approves the requisition.

  3. 3. The Supplier is selected based on business sourcing rules, including Request for Quotations (RFQ). If the supplier does not exist, a new supplier is created.

  4. 4. The Procurement team (buyers) creates the purchase order.

  5. 5. The Approver approves the purchase order. The purchase order is created and sent to the Supplier.

  6. 6. The Supplier receives the purchase order, and fulfils the order by sending the Items. If the purchase order is for a service...

Raising requisitions for Items


Oracle iProcurement provides us with the functionality to create requisitions. Requisitions can be manually created from the purchasing or iProcurement modules. Requisitions can be imported from external systems and also generated from other modules including Order Management, Work in Process, and Inventory.

In this recipe, we will raise a requisition with two lines:

  1. 1. Catalog Requisition: 100 Items of PRD20001 Paper Widgets

  2. 2. Non-Catalog Requisition: Consulting services relating to the Widgets for a fixed amount of $150

We can raise a requisition for a catalog and a non-catalog Item in an iProcurement.

Getting ready

Log in to Oracle E-Business Suite R12 with the username and password assigned to you by the system administrator. If you are working on the Vision demonstration database, you can use OPERATIONS/WELCOME as the USERNAME/PASSWORD.

How to do it...

Let's list the steps required to create a requisition:

  1. 1. Navigate to the iProcurement responsibility.

  2. 2. Select...

Approving requisitions


Requisitions are approved based on the approval rules. In this recipe, we will look at how to approve requisitions.

The requisition number 14337 needs to be approved by Catherine Baker.

Getting ready

We need to log in as the approver to approve the requisition. If you are using the VISION demonstration database, log in with CBAKER/WELCOME as the USERNAME/PASSWORD.

How to do it...

Let's list the steps required to complete the task:

  1. 1. Select the iProcurement responsibility.

  2. 2. In the My Notifications region, select the link to the requisition Purchase Requisition 14337 for Stock, Pat (25,150.00 USD).

  3. 3. We now have the option to Approve, Approve And Forward, Forward, Reject, Reassign, or Request Information.

  4. 4. Review the requisition and click on the Approve button to approve the requisition.

  5. 5. A notification is sent to the requester of the approval of the requisition.

How it works...

Purchase requisition approvals are based on a hierarchy, which determines how the documents...

Creating suppliers


Suppliers are required for the creation of a purchase order. In this recipe, we will create a supplier called Office Widgets Suppliers, Inc.

Getting ready

Suppliers can be created from the purchasing or payables responsibilities. Before the supplier is created, we need to establish that the supplier does not exist on the system, and the necessary payables, purchasing, and financials options have been set.

How to do it...

Let's list the steps required to create a supplier:

  1. 1. Navigate to the Purchasing responsibility.

  2. 2. Navigate to Supply Base | Suppliers.

  3. 3. Click on Create Supplier.

  4. 4. In the Supplier Type field, select Standard Supplier from the drop-down list.

  5. 5. In the Organization Name field, enter a unique name for the supplier name. For example, Office Widgets Suppliers, Inc. Organizations should have a naming convention for suppliers to avoid duplicate entries. The Organization Name is case sensitive.

  6. 6. In the Country of Origin field, enter United States.

  7. 7. Click on...

Creating purchase orders


Purchase orders are created from requisitions, or created separately without a requisition. Once the purchase order is created and approved, it can be sent to the supplier for fulfillment of the order. In this recipe, we will create a standard purchase order for the requisition 14337, and use the Office Widget Suppliers, Inc. as the supplier.

Getting ready

We need to be set up as buyers to create purchase orders. Let's review the buyer setup details for Pat Stock:

  1. 1. Log in to the Purchasing responsibility.

  2. 2. Navigate to Setup | Personnel | Buyers.

  3. 3. Search for the buyer attached to the user.

  4. 4. In the Buyer field, enter %Stock%Ms%, and click on the Go button.

  5. 5. The buyers details are displayed.

How to do it...

Let's list the steps required to complete the task:

  1. 1. Navigate to Buyer Work Center | Requisitions.

  2. 2. In the Demand Workbench, click on the Search button.

  3. 3. Click on the Clear button.

  4. 4. Enter the Requisition number 14337 in the Requisition field.

  5. 5. Click on...

Receiving Items


Receiving Items consists of two main parts: receiving into a receiving bay, and then delivery into a Subinventory or Expense location. In this recipe, we will look at direct delivery into a Subinventory location. Receiving can occur in purchasing or iProcurement; we will use iProcurement to receive in this recipe.

We are going to receive 45 of the 100 paper widgets from Office Widget Suppliers, Inc.

Getting ready

We need an approved purchase order before we can receive the Items in iProcurement.

How to do it...

  1. 1. Select the iProcurement responsibility.

  2. 2. Click on the Receiving tab and enter the requisition number 14337 in the Search Value field.

  3. 3. Click on the Go button.

  4. 4. Select the line for the Paper Widget and enter 45 in the Receipt Quantity / Amount field. We need to ensure that that the correct unit of measure is selected.

  5. 5. Click on the Next button.

  6. 6. Enter the Receipt Date.

  7. 7. Enter the Waybill number, for example, WB-10001-62962. This is the consignment note issued...

Reviewing procurement accounting transactions


Oracle purchasing supports cash and accruals accounting. In this recipe, let's review the accounting transactions for accruing on receipt for direct delivery.

How to do it...

Let's list the steps required to review the accounting transactions:

  1. 1. Select the Purchasing responsibility.

  2. 2. Navigate to Receiving | Receiving Transactions Summary.

  3. 3. In the Find Receiving Transactions form, select the Supplier and Internal tab.

  4. 4. Enter Office Widgets Suppliers, Inc in the Supplier field.

  5. 5. Click on the Find button.

  6. 6. In the Receipts Headers Summary form, click on the Transactions button.

  7. 7. From the Tools menu, select View Accounting.

  8. 8. Review the Accounting Transactions.

How it works...

Accounting distributions stored in the purchase orders are used to determine the accounting transactions sent to the General Ledger. Once the Items are receipted, a receipt accrual is sent to the General Ledger. The accounting transactions are displayed in the following...

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Key benefits

  • Delivers practical solutions that can be easily applied in functional EBS environments
  • A step-by-step tour through the EBS R12 Financials core modules in this book and eBook
  • Demonstrates the functional integration points between the EBS R12 Financial modules

Description

Oracle EBS Financials Suite is a solution that provides out-of-the-box features to meet global financial reporting and tax requirements with one accounting, tax, banking, and payments model and makes it easy to operate shared services across businesses and regions. Have you ever wondered how the EBS Financials modules integrate with each other, and do you want to know how this is done quickly? If so, this book is for you. You may have read about what EBS financials does, but with this book on your work desk you will see how to do it. The Oracle E-Business Suite 12 Financials Cookbook will enable you to taste the core functionalities of the main modules using bite size recipes. Each recipe is organized in a way that will enable you to learn the core steps to perform in a key business scenario; it then dives deeper into concepts and scenarios. Discover scenario-based recipes, designed to help you understand how the end-to-end processes within EBS R12 Financials modules are linked together, through touch points. With each chapter, this book develops a full business end-to-end scenario to cover the financial modules. You will start by creating items in Inventory, and then purchase items in Procurement. Then you will move on to entering supplier invoices and paying them in Payables and creating and managing assets. See how items are sold and shipped to customers in Order Management, and how funds are received from customer in Receivables. Manage cash and transfer transactions to General Ledger, and then close periods.

Who is this book for?

This book is for EBS Financials specialists who want a broader understanding of particular areas of the financials modules. Businesses can use this book to identify key functionalities of the financial modules, and very quickly demonstrate a pilot to obtain the core requirements. If you are a Business Analyst, Functional Consultant, Technical Consultant, Project Sponsor, Project Manager, Project Team Member, System Accountant or Solution Designer, Testing Team Member, Training Team Member or Support Team Member, then this book is for you. This book assumes that you have basic navigation skills and you understand the key Oracle EBS terminology, novice EBS professionals will also gain from the expert content of this book.

What you will learn

  • Create inventory items and define item controls
  • Raise and approve requisitions for inventory and non-inventory items, create suppliers, purchase orders, receiving items and purchasing accounting transactions
  • Process different types of invoices for PO and non-PO invoices, payments to suppliers, and payables accounting transactions
  • Manage asset transactions from addition to retirement, including depreciating assets and assets accounting transactions
  • Create customers and manage sales orders, including shipping, pricing, and creating invoices
  • Manage the receivables process from billing to collection, including revenue accounting
  • Handle cash, create bank accounts, reconcile bank accounts, and create cash forecasts
  • Administer the general ledger, accounting setup, sub-ledger accounting, e-business tax, and create journals.
  • Close periods for sub-ledgers, reconcile transactions, and run financial reports

Product Details

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Publication date : Aug 18, 2011
Length: 384 pages
Edition : 1st
Language : English
ISBN-13 : 9781849683104
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ISBN-13 : 9781849683104
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Frequently bought together


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Oracle E-Business Suite R12 Core Development and Extension Cookbook
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Table of Contents

9 Chapters
Creating Items in Inventory Chevron down icon Chevron up icon
Purchasing Items in Procurement Chevron down icon Chevron up icon
Paying Supplier Invoices in Payables Chevron down icon Chevron up icon
Managing Assets Chevron down icon Chevron up icon
Selling Items to Customers in Order Management Chevron down icon Chevron up icon
Receiving Funds in Receivables Chevron down icon Chevron up icon
Managing Cash Chevron down icon Chevron up icon
Defining Transactions for the General Ledger Chevron down icon Chevron up icon
End of Period Processing Chevron down icon Chevron up icon

Customer reviews

Rating distribution
Full star icon Full star icon Half star icon Empty star icon Empty star icon 2.6
(5 Ratings)
5 star 0%
4 star 40%
3 star 20%
2 star 0%
1 star 40%
Amazon Customer Nov 09, 2015
Full star icon Full star icon Full star icon Full star icon Empty star icon 4
Good Service and Quality
Amazon Verified review Amazon
Mr. S. Sirah Jan 20, 2012
Full star icon Full star icon Full star icon Full star icon Empty star icon 4
Overall the book has been a great read and I have to say although the target audience might be the end-user I feel it would be of great benefit to functional and technical consultants alike. The book has the following points that really do set it apart from other publications: * Everything is clearly marked, with very well laid out screen shots and hence so easy to follow. * It's succinct allowing the user to explore the various modules but also providing enough of a road map to steer in the right direction should the user lose track. * The author focuses on important areas within the Oracle modules thereby helping the reader identify with everyday tasks.The procurement section of the book was my favourite as it taught me a great deal and more importantly how it integrates with Oracle HR. I enjoyed the final chapter, `The End of Period Processing', as this details a number of exercises that need to be done at period end which once again aren't covered in such an iterative approach in most other publications.Please note the publication is very basic so would suit as a refresher or as a reference guide. If you're a seasoned vetran of Oracle Applications you shouldnt need this publication or for that matter any other publication. For an introduction to R12 it's great.
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Ashutosh Jan 07, 2020
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Very less topics covered
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David Haimes Feb 14, 2014
Full star icon Empty star icon Empty star icon Empty star icon Empty star icon 1
I have not read the book cover to cover, but I have looked at a number of different chapters and all I see is navigation paths and screenshots that frankly I can get from the User documentation.I do not find any insight or guidance. Very disappointing.
Amazon Verified review Amazon
M.Nazih Sep 15, 2011
Full star icon Empty star icon Empty star icon Empty star icon Empty star icon 1
Books related to Oracle E-Business Suite are few and they all take the same form; a summary of oracle user guides. This book is no difference. It gives very basic functions of the applications with screenshoots.
Amazon Verified review Amazon
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