PURCHASING
All the Purchasing
related activity information will be declared in Purchasing
Procure 2 Pay Cycle:
RequisitionàRFQàQuotationà
Quotation AnalysisàPurchasingàReceivingàInvoice
à
PaymentàReconciliation
PO-Integration: PO is integrated by GL, AP, I Supplier,
Procurement, and Project Accounting
Step1:
Define PO Responsibility
Nav:
System administratoràSecurityàResponsibilityàDefine
Step2:
Assign PO options to the PO Responsibility
Nav:
System administratoràProfileàsystem
Step3:
Assign PO Responsibility to User
Nav:
System administratoràsecurityàuseràdefine
Note: PO is including some of i.e. Options, Supplier, Item,
Expenses, and Purchasing.
Options: Options
nothing but a Controlling future at the operating unit level.
They are
Three Types of Option i.e.
1. Financial Option
2. Purchasing Option
3. Receiving Option
- Financial Option: These options will be shared by Purchasing, Account table, Internet expenses application
Nav:
TCS PO àSetupàOrganizationàFinancial
Option
- Purchasing Options: It will be shared by the Purchasing applications
Nav: TCS PO àSetupàOrganizationàPurchasing
Option
3. Receiving Options: This option will
be shared by Inventory, Purchasing and Order
Management
Nav: TCS PO àSetupàOrganizationàReceiving
Option
Employee:
It is used
to position of the organization i.e. CEOàDMàPMàPO
Clerk.
Step1: Define a Job
Nav: TCS HRàWork structureàJobàDescriptionàNew
(A)
Step2: Create
Employees
Nav: TCS HRàPeopleàEnter
and maintain
Step3: Assign Job to
be Employee
Nav: TCS HRàPeopleàEnter
and maintain
3.1: Assign
PO Clerk Jobs to the Employee1
3.2: Assign PO
Manager to the Employee 2
Step4: Assign Manager
to the Clerk
Nav:
TCS HRàPeopleàEnter
and maintain
Step5: Create User
and assign Employees to the User
Nav:
System administratoràSecurityàUseràDefine
5.1 PO Clerk User Name
5.2 PO
Manager (new)
Supplier:
Definition:
Either Person or Organization who is Supplying Good or Services is called a
Supplier.
They are
two levels of data in Supplier i.e.
1. Supplier header
(Head Office): This Information is Global Specific
2. Supplier Site
(Branch Office): This Information is Operating Unit Specific
Step1: Create a
Supplier
Nav:
Tcs poàSupplier
BaseàSupplier
Step1.1
Create Supplier
After
Organization (Tab), Address Book (T), Contact (T), Business Classification (T),
Product and Services (T), Purchasing (T), Receiving (T).
ITEM:
Definition: Item
will be defined in either Inventory or Purchasing Application so it is used
Inventory Key Flexfield to define the Item, these are seven key flexfield in
the inventory applications
Item Category Structure:
Family: Electricals
Classifiers: Lap tops Led
TVs
Step1: Create Item
Category Structure
Nav: TCS InvàSetupàFlexfieldsàkeyàSegment
Application:
Inventory Flexfield Title: Item Category
Add New: TCS ITEM
go to Segment
1. Family family Segment1 item categories
2. Class Class Segment2
Item Class Category
(√) Enable Freeze Flexfield DefinitionàCompile (2 times)
Item Category Values
Step1.1: Define
Values
Nav:
TCS-InvàSetupàFlexfieldà
KeyàValues
Application:
Inventory
Title: Item Category
Structure:
TCS ITEM
Segment:
Family goes
to find
Add new Values
TCS Electricals TCS
Electricals TCS Electricals
TCS Furniture TCS Furniture TCS Furniture
SAVE
Step 1.2 Class Values
Same Navigation
Nav: Go toàviewàfindàsegmentàClassàindependent
valueàTCS
ElectricalsàFind
Add new values
Laptop Laptop Laptop
LED TV LED TV LED TV
SAVEàExit
Category Codes: Category
codes are used to categories the Item
Step1: Define Category Codes
Nav:
TCS-INVàSetupàItemàCategoryàCategory
CodesàNew
TCS ITEM TCS ELEC
LAPTOP TCS ELEC LAPTOP
TCS ITEM TCS ELEC
LEDTV TCS ELEC LEDTV
Category Set:
It is used to group the values categories
Step1: Define Category Set
Nav:
TCS INVàSetupàItemsàCategoriesàCategory
setsàOrganization
(Win) àTCS
SOFTWARE ORGàOK
Category Set (Window)
Name: TCS
Category set
F
Structure: TCS ITEM
Default
Category: TCS ELEC LAPTOP
(√) Allow Multiple Item Category
Category
TCS ELEC LED TV
SAVEàClose
Create Item
Step1: Define Item
Nav:
TCS INVàItemsàMaster
Item
Go to Main (T): Primary:
Each
Go to Inventory (T): Enable Inventory Item
Go to Purchasing (T): Enable Purchasing and 01.001.5050.000
Go to Order Management (T): Enable Customer Ordered
Go to Invoice: Enable Invoice and Sales A/C: 01.001.5110.000
SAVE
Note: place curser on
ITEM (LAP TOP)àgo
to TOOLSàCategoriesàCategory Assignment
(Win)
Category set Control Level Category
TCS Category set Master TCS
ELEC LAPTOP
SAVEàCloseàClose
Open PO
Periods
Nav: TCS PO àSetupàFinancialàAccountingàControl
Purchasing Periods
Document Types:
It will determine the futures of various Purchasing
Documents.
Step1:
Define Document Type
Nav:
TCS PO àSetupàPurchasingàDocument
Types
Approval Groups:
This are used to define the authorized limit for various Job
Step1:
Define Approval Limits
Nav:
TCS PO àSetupàApprovalà
Approval Groups
Operating Unit: TCS Software
Name: PO CLERK
Object Type Low
value High value
Document Type include 500000
Nav: TCS PO àSetupàApprovalà
Approval Groups
Operating Unit: TCS Software
Name: PO MANAGER
Object Type Low
value High value
Document Type include 500000
Approval Assignments: It is used to Assign Approval goods to the
Jobs
Nav:
TCS PO àSetupàApprovalàApproval
Assignments
Step1: PO CLERK
Operating
Unit: TCS Software
Job: TCS POCLERK
Note: Add the EIGHT
Approval Assignments
Nav: TCS PO àSetupàApprovalàApproval
Assignments
Step2 PO MANAGER
Operating
Unit: TCS Software
Job: TCS POMANAGER
Note: Add the EIGHT
Approval Assignments
Buyer: A person who is
buying goods or services behalf of organization is
called a buyer
Define a Buyer i.e. emp1 as buyer
Nav:
TCS PO àSetupàPersonalàbuyer
Add BuyeràSave
Define a Buyer i.e. emp2 as buyer
Nav:
TCS PO àSetupàPersonalàbuyer
Add BuyeràSave
1.
Requisition: When
there is goods are services requirement in Organization
Service is in employee
These
Requisitions contain three levels of information i.e. 1.header 2. Lines
3. Distribution
For
Example Serial No: Supplier
105
Sony pvt ltd à Header
Lap Top 10*10000=100000àLine
Distribution
They two
types of Requisition 1. Internal
Requisition
2. Purchase Requisition
- Internal Requisition: Internal Requisition will be created by Employee and send to the where house to adjust items internally
- Purchase Requisition: It will be created by Employee and send to the Purchasing department to accrue goods from external sources.
Step1: Create
Purchase Requisition
Nav:
TCS PO àRequisition
Operating
Unit: TCS Software
Type:
Purchase Requisition
A. Go
to Lines (T) [ check Source, Details, Currency,)
B. Go
to distribution àAccount(T)àenter
Amount and AccountàSaveàClose
C. Come
to Requisition(Win)àApproveàEnable Submit for Approval, PrintàOk
Step2: Query the
Purchase Requisition to check the Approval status
Nav: TCS PO àRequisitionàRequisition
Summary
Operating
Unit: TCS Software
Requisition
Num: 1
Find
Requisition
Summary (Win)
Number Description
Approval Status Create Document
1 Test
Approved ------------
2. RFQ (Request For
Quotation): RFQ will be created by Buyer only and send to the
various Suppliers to obtain Quotation.
They are three types of
Standard RFQ’s
1.
Catalog RFQ
2.
Standard RFQ
3.
Bid RFQ
RFQ will be created in two ways i.e. 1. Manual, 2. Auto Create
Manual RFQ Create
- Catalog RFQ: These will be created by regular purpose so these are contains three levels of data i.e. 1. Header 2. Lines 3. Price breaks
Step1: Create Catalog RFQ
Nav:
TCS PO àRFQ QuotationàRFQ
Operating
Unit: TCS Software Type: Catalog
RFQ
Description:
testing Close
Date:
Come to Item (T)
Num Type Item UOM Total
Payment
1 goods Laptop
each 35000
Go to Terms
Testing
and Condition
Price Breaks (T)
Num UOM
More (T)
Num
Match Approval Tolerance Exception
1 2Way 10 Warning
CloseàSave
Go
to SuppliersàRFQ
Supplier 1
Seq Supplier Site
1 Sony Sony hyd
Close
Come to RFQ (Win)
Status:
Active
Close the Application
Step2: Print RFQ
Nav:
viewàRequestàSubmit
a new requestàselect single requestàok
Name: Print RFQ Report
(Land Scope)
Operating
Unit: Tcs Software
Parameters:
all
From
1 to 1àok
View àRequestàfindàenter
Standard RFQ: It is used for items which are buying very
occasionally they are three levels of information in Standard RFQ
1. header
2. line
3. Price
breaks
Bid RFQ: It is used to for High value
item which are having special shipping details
Example:
Machinery (Rice Machine)
Three
levels of information in Bid RFQ
1
Header
2
Line
3
Shipment
Auto Create RFQ:
Nav:
TCS PO àPurchase OrderàAuto
create
Quotation:
Quotation are received from supplier and entered in the Oracle
They
are Three Types of Quotations i.e.
1.
Catalog Quotation
2.
Standard
Quotation
3.
Bid
Quotation
Quotation Created by Two Ways i.e.
1.
Manual
2. Auto Create
- Manual Creation: This manual used to Catalog Quotation
Step1: Create Catalog
Quotation
Nav: TCS PO àRFQ
and QuotationsàQuotations
Operating Unit: TCS Software Type
Catalog
Supplier: Sony Site:
Sony Hyd
Go to Item (T)
More (T) àgo for àPrice breaksà More (T)
Status:
Active
Approve
Note: Quotations are created by only Buyers.
Purchase Orders: It’s a legal document which will be created by
Organization
and send to the Supplier to buy goods or services
They are Four Types of Purchase Order i.e.
1.
Standard
Purchase Order
2.
Plan
Purchase Order
3.
Blanket
Purchase Agreement
4.
Contract Purchase Agreement
These are four level of information in purchase order
- Header
- Lines
- Shipment
- Distribution
Purchase Order can be create in two ways: 1. Manual 2. Auto
create
- Manual Creation:
- Standard Purchase Order: it’s a legal document to buy goods of service by supplier it will be created when we know the term and conditions goods or services, price, Quantity, Delivery, Schedule, and accounting distribution and also it is one time purchase order.
1. Create Standard
Purchase Order
Nav:
TCS PO àPurchase OrderàPurchase
Order
Operating Unit: TCS Software Type:
Standard Purchase Order
Supplier: Sony pvt ltd Site:
Sony hyd
Come Lines (T)
Come to Price Breaks (T)
go to shipments(T), go to More (T), Status (T) , Place curser on
shipment go to Receiving Controlàgo to distributionàsave
Distribution àcome to More (T), go to ApproveàOK.
2. Plan Purchase
Order: It is long time agreement so its agreement between the Org and
Supplier to buy goods or services it will be created when we know the terms and
conditions goods or services, price, quantity, and distribution, schedule, so
later we will create schedule release with the reference of plan purchase order
and send to the supplier to obtain goods or services.
3. Blanket Purchase Agreement:
it’s Agreement between Org and Supplier to buy goods or services it will be
created when we know the terms and condition goods or services and price later
blanket retain will be created with reference of blanket purchase agreement and
send to the supplier to obtain good or services
4. Contract
Purchasing Agreement: it’s long term agreement release a Org and Supplier
it will be created when we know the terms and condition later standard purchase
order will be created with reference of contract purchase agreement and send to
the supplier to obtain goods or services
Receiving: Entering Delivery Information in the system is called a
Receiving
They are three types of
receiving methods
1.
Direct
method
2.
Standard
Receipt
3.
Inspection
Note: always
receiving will be done at inventory Organization
Open Inventory
Periods:
Nav: TCS INVàA/c ing Close CycleàInventory
A/c ing PeriodsàTCS SoftwareàInventory
A/c (Win) àchange
month status i.e. open
Sub inventory:
Step1:
Define Sub inventory
Nav:
TCS INVàsetupàOrganizationàSub
inventoryàSub
inventory summary (Win) àOpenàSub Inventory
Name: TCS Sub Inv Description:
Tcs sub inventory
Accounting (T):
01.001.7515.000
01.001.5370.000
01.001.1410.000
01.001.1410.000
Resource 01.001.1481.000 Save
On Hand
Availability:
Nav:
TCS InvàOn
Hand AvailabilityàOn Hand QuantityàQuery
Material (W) àFindàMaterial
Work Bench
Direct Delivery: it
is receipt routing goods will be direct delivery to final destination
Step1: Create Purchase Order with Receipt Routing Direct Delivery
Nav:
TCS PO àPurchase OrderàPurchase
Orderà
Purchase Order (W)
Go
to Status (T)
Num status ordered received
excel bill
1 10 0 0 0
Close àClose
Step2: Receive the goods
Nav:
TCS PO àReceivingàReceiptsàTCS
SoftwareàOK
Step3: Check the receiving transaction status in the remaining
transaction summery window
Nav:
Tcs PO àReceiving àReceiving
Transaction Summary
Step4: Check the received Quantity in the purchase order
Nav:
Tcs POàPo orderàpo order
Step5: Check the material on hand availability
Nav:
Tcs invàon
hand availabilityàon hand quantity
Standard receipt:
Under this receipt routing first goods will be received at one place and send
to the final destination
Step1: Create the purchase order with
receipt routing standard receipt
Nav: Tcs POàPurchase orderàPO Order
Step2: Received
the goods at one place
Nav: Tcs PO àReceiving
à
Receipts àTcs
software orgàok
Step3: Check the receiving transaction status in the receiving
transaction summary window
Nav: Tcs PO àReceivingàreceiving
transaction summary
Step4: Delivery goods the final destination
Nav: Tcs PO àReceivingà
receiving transaction
Step5: Check the receiving transaction status in the receiving
transaction summary window
Nav: Tcs PO àReceivingàreceiving
transaction window
Inspection: Under
this method first goods will be received at one place then inception came then
inspection people inspection then goods after that the final destination.
Step1: set a QA Inspection people option
name at responsibility level
Nav: System administratorà SystemàPeople
Step2: Create the
purchase order with receipt routing standard receipt
Nav: Tcs POàPurchase orderàPO Order
Step3: Received
the goods at one place
Nav: Tcs PO àReceiving
à
Receipts àTcs
software orgàok
Step4: Check the receiving transaction status in the receiving
transaction summary window
Nav: Tcs PO àReceiving
à
Receipts àTcs
software orgàok
Step5: Inspects the goods
Nav: Tcs PO àReceivingàreceiving
transaction
Step6: Check the receiving transaction status in the receiving
transaction summary window
Nav: Tcs PO àReceivingàreceiving
transaction summary
Step7: Delivery the goods to the final destination
Nav: Tcs PO àReceivingàReceiving
Transaction
Step8: Check the receiving transaction status in the receiving
transaction summary window
Nav: Tcs PO àReceiving
à
Receiving Transaction summary
Returns: It is
used to record the returns goods information
Step1: Check the material on hand
availability
Nav: Tcs invàon hand availabilityàon
hand quantityà Tcs soft org
Step2: Return the
goods to supplier
Nav: Tcs PO àReceiving
àReturnsàTcs
Soft org
Step3: check the
on hand availability
Nav: Tcs invàon hand availabilityàon
hand quantityà Tcs soft org
hi this is good one and helpfull whery much. can you please shre the similar document for OM and Inventory
ReplyDeleteHi Rama Murthy ,
ReplyDeleteThis is very good document and much helpful.
hello Murthy,
ReplyDeleteGood morning, this Nagendra babu, i like your note please mention account payable also. I'm requesting please send your oracle note to mail-id: nagendra.maradani@gmail.com
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeletenice note for reference..
ReplyDeleteyes, this article is very useful for reference.
Deletethank for u r brief explanation sir
ReplyDeletethank for u r brief explanation sir
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