Commodity Sourcing in Oracle Purchasing

Presented to OAUG February 25th, 2010

The information in this document/presentation is the confidential information and trade secret of ATCO I-Tek and may not be disclosed to any person without the prior written permission of an authorized representative of ATCO I-Tek. 2010 ATCO I-Tek Inc. All Rights Reserved

Commodity Sourcing Overview

This presentation will review:

Benefits of Commodity Sourcing in Oracle

Process Considerations Set up of Commodity Sourcing Creation of Requisitions using Commodity Sourcing

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Benefits of Commodity Sourcing

Common and frequently used services can be automatically sourced Multiple suppliers can be used

same type of service

different rates

Does not require Oracle Inventory Does not require an Item Master

Process is similar to item sourcing

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Process Considerations

Commodity sourcing for services requires a unique category established for each and every commodity you wish to source The line description of the Commodity on the purchase requisition must exactly match the line description on the Blanket Purchase Order Item sourcing take precedence over Commodity sourcing

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Setting Up Commodity Sourcing

First create new categories specifically for commodity service sourcing Commodity service categories must be unique Ensure that the commodity category is NOT currently being used by any purchase item

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Setting Up Commodity Sourcing

Create a Blanket Purchase Order for the services/commodities using the new category

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Setting Up Commodity Sourcing

Set up a sourcing rule for the specific commodity

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Setting Up Commodity Sourcing

Assign the sourcing rule to the category

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Setting Up Commodity Sourcing

Set up the Approved Supplier List for the commodity

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Setting Up Commodity Sourcing

From the Approved Supplier List, via the Supplier Attributes button, set up one Supplier Item Attribute line for each unique Blanket Purchase Order

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Setting Up Commodity Sourcing

If more than one category is required on the Purchase Order, you must set up the Approved Supplier List for each category Additional suppliers can be added to that category on the Approved Supplier List providing a unique Blanket Purchase Order is set up for each supplier

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Commodity Sourcing - iProcurement

In Oracle iProcurement select the Advanced Search option

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Commodity Sourcing - iProcurement

Search for the Supplier Name and select Go

Can search on category, but must also search on one of the top 3 fields

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Commodity Sourcing - iProcurement

A list of the relevant Blanket Purchase Order lines is displayed

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Commodity Sourcing - iProcurement

Confirm the Contract Number Field on the iProcurement screen the Contract Number represents the Purchase Order number

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Commodity Sourcing - iProcurement

Select all required lines you wish to request Complete and submit the requisition for approval

Run the Oracle Create Releases concurrent request

Run the Workflow Background Process request

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Commodity Sourcing - iProcurement

Depending on the Release Method selected on the Approved Supplier list, one of the following will occur:

Requisition is waiting in Autocreate to be processed onto a Purchase Order, or Purchase Order is Incomplete waiting for submission to be approved, or Requisition should now be sourced and available on a Purchase Order release

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Commodity Sourcing - Core Purchasing

In Oracle, navigate to Requisitions > Requisitions screen to create a Requisition Select Purchase Requisition for the Type

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Commodity Sourcing - Core Purchasing

Place the cursor anywhere on the first line of the requisition

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Commodity Sourcing - Core Purchasing

Select the Catalog button

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Commodity Sourcing - Core Purchasing

On the Search Supplier Item Catalog form there are various ways to find the commodity you wish to source Select the Clear button to refresh the search options this clears out any defaulted entries

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Commodity Sourcing - Core Purchasing

Enter one or more of the following on the Search Supplier Item Catalog form:

In the Commodity field, enter the category to be sourced

Enter the supplier name in the Supplier Field

Upon completion, select the Find button

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Commodity Sourcing - Core Purchasing

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Commodity Sourcing - Core Purchasing

Select the Negotiated Sources tab

TIP: The Profile option: PO: Default Supplier Item Catalog Option controls which tab opens by default. The lines displayed are the sourced blanket line items for that supplier

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Commodity Sourcing - Core Purchasing

Select a line and select the Add button. This puts a line entry on the bottom half of the screen repeat as required until all desired lines are added to the requisition

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Commodity Sourcing - Core Purchasing

When all required lines have been added, choose the Select button to return to the requisition screen

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Commodity Sourcing - Core Purchasing

Once back on the Requisition creation screen, continue to create the requisition

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Commodity Sourcing - Core Purchasing

Complete and approve the requisition as per normal business process Run the Oracle Create Releases concurrent request Run the Workflow Background Process request

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Commodity Sourcing - Core Purchasing

Depending on the Release Method selected on the Approved Supplier list, one of the following will occur:

Requisition is waiting in Autocreate to be processed onto a Purchase Order, or Purchase Order is Incomplete waiting for submission to be approved, or

Requisition should now be sourced and available on a Purchase Order release

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Trouble shooting
There are some common reasons why commodity sourcing is unsuccessful:

End Effective Date on the Blanket Purchase Order is expired Start Effective date on the Approved Supplier List is future dated Line description does not EXACTLY match the line description on the corresponding Blanket Purchase Order Create Releases or Workflow Background Process did not run or did not complete successfully

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Commodity Sourcing

Questions?
Dawn-Marie Lotz ATCO I-Tek Oracle Functional Analsyt (780)420-3406 dawn-marie.lotz@atcoitek.com

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