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e-Business Suite R12 Awareness Training

Purchasing

Greg Cozzens

AGSS Solutions Architect, Procurement

• Purpose:This document provides an overview of features and enhancements included in Release 12.  It is intended solely to help you assess the business benefits of upgrading to Release 12.

•

Disclaimer:This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle.  Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply.  This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle.  This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates.   This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described.  It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.  The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle.   Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.

AgendaDay 1

Introductions and ExpectationsPurchasing

11i10 BaselineR12 Delta reviewInstructor led UPK demonstrationHands on UPK exerciseWrap-up / Q&A

Procurement ContractsBI for PurchasingReview

Day 2iSupplier PortalSourcingiProcurmentServices Procurement

Oracle Purchasing SolutionFree Buying Professionals to Focus on Strategic Activities

• Pre-Defined Policies

• Approved Supplier Lists

• Negotiated Contracts

• Blanket Agreements

Spend Categories

Suppliers

Exceptions

• Supplier Information

• Drop Ship Details

Consumables & Supplies

Engineer to Order

ManualApproval

Supply Base Management

Flexible Procurement Automation

Buyer Workbench

Business Services

Parts & Components

IndirectGoods

DirectMaterials

EngineeredGoods

Consolidate All Demand

Receive, Reconcile,

and Pay

Services

Generate Order

Documents

Approve and

Allocate

Vs. SAP

New in 11i.9…Base Differentiators…• Self-service enterprise

requisitioning from suppliers or internal stock

• Integrated asset and production planning

• Self-service supplier inquiries and transactions, (e.g. VMI and self-invoicing)

• Flexible invoice matching including match to receipt

• Automatic invoice and debit memo generation

• Project- and budgetary-based purchasing

• Multi-attribute scoring for reverse auctions and RFQs

• Open platform for demand, orders, receiving, invoices

• Integrated spend and supplier intelligence

• Workflow-driven automation

New in 11i.10…• Global agreements

• Supplier managed and consigned inventory

• Requester and supplier change requests

• Supplier registration and profile management

• Collaborative sourcing

• Requester “stores” for secure content zones

• Patent-pending transparent punch-out

• One-click renegotiation of blanket agreements

• Expanded XML support including cXML for easing Ariba migrations

• Time-phased pricing for direct materials

• Commodity intelligence

• Services procurement – contingent labor & bus services, negotiation through payment

• Procurement contracts – global T&Cs standards, negotiation, doc & change mgmt, compliance

• Formula-based pricing & tiered discounts (Advanced Pricing)

• Retroactive pricing including automated invoice adjustments

• Negotiate with subjective scoring and what-if analyses

• Automatic bid scoring and award (Sourcing Optimization)

• Shared services procurement

• Requisition “SmartForms”

• LPN & lot/serial receiving

• Supplier managed banking

Evolution of Oracle Advanced Procurement

Review Business Needs – Market Drivers

• Optimized Work Center for Shared Service Centers• Streamlined Web-based Interface Increases Efficiency• Reduced Non-Catalog Spend using unified catalog• Increased Savings by leveraging Negotiated Pricing• Reduce time to discover items by using powerful parametric

catalog search capabilities

Purchasing

• Feature capabilities• Professional Buyers Work Center• Enhanced Catalog Access• Document Styles• Multi-Org Access Control (MOAC)• Document Publishing

Enhancements• Communicate document attachment

to suppliers• Maintain Sourcing rules/ASL’s for

agreement items• Complex Services• Contract Purchasing Users• Supplier Packaging Constraints• E-Business Tax• Complex pricing for Blanket items• Mass re-pricing• Auto-approval tolerances

• Market Driver(s)• Customer & sales enhancement

requests

Value

• Buyer efficiency enhanced

Professional Buyer’s Work Center Feature Description

• Requisitions• View and Process Requisitions into Orders or Sourcing Events

• Orders• Create and Manage Purchase Orders

• Agreements• Create and Manage Blanket and Contract Purchase Agreements

• Deliverables• Manage Procurement Contract Deliverables

• Negotiations• Access Oracle Sourcing

• Suppliers • Create and Manage Supply Base

• Increases Productivity

• Central Place for Buyers to Perform Day-to-Day Tasks • Optimized for Shared Service Centers• Streamlined Interface Increases Efficiency• Pre-Seeded or Custom Views for quicker access to information

and prioritize tasks

• Designed for Procurement Professionals, the PBWC Combines Ease-of-Use with Power Capabilities to Track, Manage and Control all Strategic and Tactical Activities.

Professional Buyer’s Work CenterBenefits

Enhanced Catalog AccessFeature Description

• iProcurement like Search Capabilities for Purchasing Users• Add Catalog Items to Purchase Orders and Agreements• Replace non-catalog requests with lines from the catalog

Document StylesFeature Description

Enable/Disable Features

Assign Display Names to Document Types

Multi-Org Access Control Feature Description

OLD PROCESS

ApplicationResponsibility A

Operating unit X

ApplicationResponsibility B

Operating unit Y

ApplicationResponsibility C

Operating unit Z

NEW PROCESS

ApplicationResponsibility A

Operating unit Y Operating unit ZOperating unit X

Document Printing Enhancements Feature Description

XML PublisherXML Publisher

XSL-FO

Purchasing

XML

Purchasing

Layout

PO Output

11.5.10

XML PublisherXML Publisher

XSL-FO

Purchasing

XML

Purchasing

Layout

PO Output

in Multiple Formats

Release 12

New in Release 12.0

New in Release 12.0

Communicate Document Attachments to Suppliers Feature Description

Attachment Type11i10 and

Beforer12

Notes to Supplier

Long/Short Text

Files (e.g. MS Word, Drawings)

URLs

Maintain Sourcing Rules/ASLs for Agreement Items Feature Description

• New Concurrent Program Introduced

• Designate agreement usage in Specific Regions or Plants

• Extend rule effectivity after renewing Blanket Agreements

• Maintain rules for all Operating Units enabled to buy off an Agreement

Complex Services ProcurementFeature Description

• An integrated solution to automate acquisition of complex services

• Complex Services Procurement is characterized by:• High dollar value projects• Long lead time delivery schedules• Complex Payment Terms• Progress payments based on work completion• Contract Financing

• Commodities / Industries of Interest• Professional Services• Engineering and Construction• Aerospace and Defense• Public Sector

•

Note: Please refer to the Complex Services Procurement TOI for more information on this feature

Author ContractRequest for Service Source Track Progress Process Payment

–Define Document Styles–Author Complex Service Contracts

–Create Complex Service Contract from Requisition–Define Progress Payment Schedule–Define Terms for Retainage–Define Terms for Contract Financing including Advances

–Monitor & Track Contract Status/Progress–Manage Contract Changes

Complex Services ProcurementFeature Description

Support for Contractor Purchasing

• Allow Contingent Workers to Participate in Purchasing Activities

• Raise and Approve Requisitions• Create, Maintain, and Approve Purchase Orders• Receive Goods and Services

• New Profile Option

HR: Expand Role of Contingent Worker

Profile Value Description

Yes Allow Contingent Workers to Create and Approve

Purchasing Documents

NoDo Not Allow Contingent Workers to Create and

Approve Purchasing Documents

Compliance to Packaging ConstraintsFeature Description

REQIMPORT

Min-Max

PURCHASE ORDER

New Process

Inventory

SUPPLIERS

Purchasing

1. Min-max creates Replenishment Request for 116 Eaches

3. PO placed for 10

cases of 12

4. PO complies to Supplier packaging constraints

2. Apply Constraints • Order Modifier• UOM Conversion• RoundingNew Quantity = 10New UOM=Cases of 12

E-Business Tax Integration Feature Description

Prior to E-Business Tax

• Basic tax setup – tax codes and tax groups

With E-Business Tax

• Comprehensive solution addressing complex tax requirements

• Single point tax solution across E-Business Suite

– Single interface: tax setup and 3rd party integration

– Uniform services

– Single repository

• Fragmented tax solution across E-Business Suite modules

– Multiple tax engines

– Duplicate tax setup

– Fragmented data storage

– Duplicate 3rd party integration

Note: Please refer to the e Business Tax TOI for more information on this feature

Requisitions

Blanket

AgreementPricing

Transactions

Orders

Pricing Engine

Oracle Advanced Pricing

Line Price

Price Break

Custom API

Price List

Formula

Modifiers

Leverage Oracle Advanced Pricingto model Complex Pricing Scenarios

Model Complex Pricing for Blanket Line Items Feature Description

Benefits

• Bring Agreements with Complex Pricing Requirements Online• Accurate Pricing of Transactions without the need for Manual Overrides• Decrease Supplier over billing• Save Cost by ensuring all available discounts are applied

Blanket Purchase

Agreement

Mass Re-pricing of Purchasing Documents Feature Description

Advanced Pricing

Price Lists, Modifiers

Custom Pricing API

Orders

New in Release 12.0

Revise Pricing Data

Auto-Approval Tolerances for Change Orders Feature Description

New tolerance attributes introduced

Set tolerances by document type

Eliminates need for Workflow Customizations

Professional Buyer’s Work Center Implementation Considerations• Requisition Management – Profile Options

• PO: Document Builder Default Document TypeThe document type that is defaulted into the document builder region.

Profile Value Description

Add to PO Add to an existing Purchase Order

New Auction Create a new Sourcing Auction

New PO Create a new Purchase Order

New RFQ Create a new Sourcing RFQ

• PO: Default Requisition GroupingThe default for grouping requisition lines onto a Sourcing RFQ/Auction or PO.

Profile Value Description

DefaultGroup requisition lines using the default grouping. One or more

requisition lines can associated with one purchase order line.

RequisitionGroup requisition lines using requisition grouping. One requisition line

can be associated with one purchase order line.

Professional Buyer’s Work Center Implementation Considerations• No support for the following document types in PBWC (including ability to

search for these documents)

• Planned PO• Local Blanket Agreement• Local Contract Agreement• Scheduled Releases• BPA Releases• Quotations• RFQs

• Purchase Orders – Profile Options

• PO: Auto Apply Default Contract Template

• Preference feature is not supported in PBWC.

Professional Buyer’s Work Center Customization and Extensibility Options

• Customers can create custom views using personalization feature in all inquiry pages.

Document Styles Implementation Considerations• Document Styles is a new concept in Release 12. It is a configuration tool that reduces the

complexity of the application by allowing procurement managers to control the available functionality and the display of PO documents. 

• A document style is mandatory on a PO document. The style setting controls the document display on the HTML UI for document creation, update, and viewing of individual document, as well as the allowable values during the document creation and update. 

• A style can only be applied at the start of document creation. It cannot be replaced with another style or removed from a document.

• Standard Style: This will be the only seeded style and will be used for upgrade of the documents created prior to R12.

• Non-standard style:

• Any new styles created in R12 are considered non-standard.

• Purchasing documents with these styles can only be created and processed through the Work Center.

Multi-Org Access Control Implementation Considerations

• New Profile Options

Entire Purchasing functionality requires the Multi Org Access Control (MOAC) setups to be configured correctly. The following new profile options need to be set for MOAC

• MO: Security Profile - the group of operating units that can be accessed in HTML Orders

• MO: Default Operating Unit - the default OU that should be used when creating new POs.

• If customer is not leveraging MOAC, they can continue to use R11i profile option ‘MO: Operating Unit’.

• Select Human resources responsibility to create the security profile (Security -> Global Security Profile (Function PERWSSCP-GLOBAL)

Document Publishing Enhancements Implementation Considerations

• Setups• Design layouts in RTF, PDF or XSL-FO formats

• Tips and Techniques• Oracle XML Publisher Desktop can be used to create RTF layout

templates

• Customization of XSL-FO Stylesheets• Purchasing Document Printing and Communication white paper

(Metalink Note: 387670.1). This feature is also backported to 11.5.10.

Communicate Document Attachments to Suppliers Implementation Considerations

• Maximum Attachment Size

On the Purchasing Options setup page, one can specify the maximum allowed size for the ZIP attachments when the output format is PDF.  This controls the checks performed while generating the ZIP file.

• Email Attachment Filename

On the Purchasing Options setup page, one can specify the filename for the compressed attachments that are sent with the Email notifications to supplier. Again, like the Maximum Attachment Size field, this field is visible when the output format is PDF.

Maintain Sourcing Rules/ASLs for Agreement Items Implementation Considerations

• Archival Method needs to be set to “Approve” for Blanket Agreements to be able to use this feature. The effective start/end dates need to be provided on the Blanket Agreement for this program to run correctly.

Support for Contractor Purchasing Users Implementation Considerations

• A Contingent worker can take up normal ‘employee’ roles only if the HR profile HR: HR_TREAT_CWK_AS_EMP is set to Yes.

• HR: Expand Role of Contingent Worker

Compliance to Packaging Constraints Implementation Considerations

• Now we would be honoring Order Modifiers (Minimum Order Quantity and Fixed Lot Multiple) during the Requisition Import concurrent program for requisitions imported from Inventory module. (interface_source_code = INV). These order modifiers are specified on Approved Supplier List  form.

• This enhancement is not applicable to the requisitions imported from any other source (e.g. MRP, eAM, or other planning modules)

E-Business Tax Integration Implementation Considerations

• Oracle Purchasing integrated with Oracle E-Business Tax to provide a flexible and generic tax solution. A fully automated E-Business Tax upgrade will migrate all Oracle Purchasing related setups for you. This will ensure that tax related functions in Purchasing will continue to work as before.

• With the new tax solution, you have the option to centrally manage tax rules and configure them to support local requirements. For details, please refer to the E-Business Tax (Applications Upgrade Guide).

Mass Re-pricing of Purchasing Documents Implementation Considerations

• Retroactive Pricing program was modified to be able to re-price execution documents, referring to either Contract agreements or Global Agreements, en masse that could have a price change by any of our pricing features: custom price API, new price breaks, or Advanced Pricing

Auto-Approval Tolerances for Change Orders Implementation Considerations

• The tolerance values set up in the setup page take precedence over the values entered in the workflow.

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Oracle PurchasingDemonstration

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Oracle PurchasingLab

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Wrap Up/ Q&A

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