Important Information On Procurement Module in EBS

Procurement/purchasing is basically buying of goods and services, based on internal requirements, which will be used as input for the processing of the end product for a given company.
The input varies from simple stationery or MRO requirement (termed as indirect goods, as they are not directly involved in production processing) to raw materials (termed as direct, as they are used for production processing) and services.

How many types of Requisition in PO module we have?

There are two different kind of Requisition

• Internal Requisition
• Purchase requisition

What is an Internal Requisition?

A requisition from the Purchasing system that will directly result in the generation of a sales order in the Order Management system through the Order Import process in Order Management.

Why do we use internal requisition/internal sales order?
Internal Requisition/Internal Sales Order provide the mechanism for requesting and transferring material from one inventory organization to other inventory organization or expense location.

What is the location in Oracle Purchasing?
Oracle Purchasing uses locations to identify the final delivery location for both inventory and vendor sourced requisition. It is using the hr_locations table.

What is an Internal customer?
When using Internal Requisition/Internal Sales Orders, it is required to create an internal customer for each destination organization and a customer ship-to site for each deliver-to location within the destination organization. Define the same address for your customer ship-to-site as your deliver-to location.

Then what is Purchase Requisition?

The Purchase Requisition is the procedural method by which different departments of organization may request the purchase of goods and/or services, which require processing by Procurement Department.

What is life Cycle of Purchase Requisition?
If you are using i-procurement this consist of 4 distinct sub-processes like:

A Requisition is generated either manually or by system, which is ultimately turned into a purchase order by the buyer. Sometimes the buyer decides a request for quotation (RFQ) is required by other suppliers to determine the best price for the goods or services requested. Once the quote is back, that information is used to finalize the purchase order.

What is flow of Requisition?
A functional flow of Requisition cycle can be represented as

What are the important Tables for Requisition?
These are the main tables:

PO_Requisition_Headers_All : it stores information about requisition headers. Each row contains the requisition number and Addition relevant information. REQUISTION_HEADER_ID is primary key.

HR_Employees : it's a view that contains information about employees. You must have a row for each requestor, requisition preparer, approver , buyer or receiver . The primary key is EMPLOYEE_ID.

PO_Requisition_Lines_All : This table stores the information about the requisition lines like quantity , item , deliver to location , requestor etc. Primary Key is REQUISTION_LINE_ID

MTL_System_Items_B : This is the definition table for items. This table holds the definitions for inventory items, and purchasing items. The primary key is INVENTORY_ITEM, ORGANIZATION_ID.

PO_REQ_Distributions_All : This table stores the information about the accounting distributions associated with each requisition line. Each requisition line must have at least one accounting distribution. Each row includes the accounting flex field id and requisition line quantity. The primary key is DISTRIBUTION_ID.

GL_CODE_Combinations: This table stores valid Accounting Flex Field segment value combinations for each accounting flex field structure within your GL application. GL_CODE_COMBINATIONS is populated by the system when a new accounting flex field combination is used, either through dynamic insertion or manually.

This can be best represented as per data model as:

Here are the drill down information for these two driving table:

1. PO_Requisition_Headers_All

·         SEGMENT1 - Requisition Number

·         AUTHORIZATION_STATUS - Lookup code and can have values

o    APPROVED Document has been Approved

o    CANCELLED Document has been Cancelled

o    IN PROCESS Document is still undergoing Approval

o    INCOMPLETE Document is not yet Complete

o    PRE-APPROVED Document is Approved but not yet Accepted

o    REJECTED Document as been Rejected

o    REQUIRES REAPPROVAL Requires Reapproval

o    RETURNED Document has been Returned

·         REQUISITION_HEADER_ID Unique Requisition ID (PK)

2. PO_Requisition_Lines_ALL

·         REQUISITION_LINE_ID Requisition line unique identifier

·         REQUISITION_HEADER_ID Requisition header unique identifier

·         LINE_NUM Line number

·         QUANTITY Quantity of Line item

·         LINE_LOCATION_ID Document shipment schedule unique identifier

·         UNSPSC_CODE Standard UNSPSC CODE

How we map the Main screen for Requisition with database table.