R12 Purchasing setups with Detail explanation-Part 3

Step 21: Define Payment Terms (Optional)

If you're also setting up Oracle Payables, you may already have performed this step when you set up Payables. You can set up payment terms such as 1/10 Net 30, which indicates that you get a 1% discount if you pay within 10 days and the invoice is due in 30 days.

See: Payment Terms, Oracle Payables User's Guide.
Step 22: Set up Approval Information

All approvers must be employees and must have a logon user name as described in Step 14 Set Up Personnel.
Note:

Even offline approvers must have a user name. An offline approver is someone who approves Purchasing documents without logging on to Oracle Applications and using the Notifications

Summary window. To set up offline approvers, see: Offline Approvers, You can set up offline approvers at any time, as long as user names have been assigned to all approvers and Workflow has been setup.

Once all approvers have been set up as employees and set up with user names, complete your approval setup as follows:

Context:

This step needs to be performed for each operating unit.
• Define approval groups. See: Defining Approval Groups (Required)
• Assign approval groups. See: Assigning Approval Groups (Required)
• Fill employee hierarchy after defining position approval hierarchies.
See: Fill

Employee Hierarchy Process. If you are using position approval hierarchies, you must run the Fill Employee Hierarchy process. (Optional)
• Define document types. See: Defining Document Types, (Required with defaults)
Default:

Each Purchasing document (such as a Standard Purchase Order, Blanket Purchase Agreement, Quotation, or Requisition) comes with standard defaults.

Update these defaults to meet your security and approval needs.

Step 23: Define Lookups and Classes

This step involves the following tasks:

Oracle Purchasing User's Guide
• Define Purchasing lookups. See: Defining Lookup Codes, page 1-54. (Required with defaults)
Default:

An example of a default lookup code that Purchasing provides is a Price Type of Fixed. See the section referenced above for a list of the other defaults that Purchasing provides.

• Define inspection codes. See: Defining Quality Inspection Codes
Default:

If you skip this task, you will not be able to assign inspection codes during receiving.

• Define hazard classes. See: Defining Hazard Classes
Default:

If you skip this task, you will not be able to assign hazard classes to items or purchase order lines.

• Define United Nations (UN) numbers. See: Defining UN Numbers
Default:

If you skip this task, you will not be able to assign UN numbers to items or purchase order lines.

Step 24: Define Standard Attachments (Optional)

If you do not want to define standard attachments now, you can do so at any time later.

See: Annotating Purchasing Documents, page 1-25. See: Attaching Notes to Purchasing


Step 25: Define Purchasing Options (Required)

See: Defining Purchasing Options, This step needs to be performed for each operating unit.
Step 26: Define Buyers (Required)

Employees who will use Purchasing as buyers or managers must all be defined as buyers. See: Defining Buyers.
Step 27: Define Items (Optional)

Although you can define items at any point from this step onward, it is recommended that you set up at least one item to ensure that your flex fields are working properly.

Default:

If you skip this step, when you create a requisition or purchase order, you will be able to enter only an item description, not an item number.

Context:

This step needs to be performed for each inventory organization.
This step involves the following tasks.

• Define items at the master level. See: Master Level vs. Organization Level, Oracle Setting Up Inventory User's Guide and Defining Items, Oracle Inventory User's Guide. Note that some Inventory fields in the Master Item window, such as the Serial number fields, are available only if Inventory is fully installed rather than shared.

• Update the default categories assigned to the items.

• Assign items at the organization level. See: Updating Organization Level Items, Oracle Inventory User's Guide.
• Define item relationships. See: Defining Item Relationships, Oracle Inventory User's Guide.
Step 28: Define Line Types (Required with defaults)

See: Defining Line Types

Default:

Default line types that Purchasing provides include Goods; Services; and Outside Processing, if Work in Process is installed.

Step 29: Start the Purchasing Database Administrator (Required)

See: Purchasing Database Administration

Step 30: Define Financial Options (Required)

See: Defining Financials Options,

Oracle Payables User's Guide.
Context:

This step needs to be performed for each operating unit.
Step 31: Define Transaction Reasons (Optional)

Transaction reason codes allow you to provide predefined explanations for each receiving transaction. Examples of transaction reason codes you can define include No Pack list, Shortage, Recall, or Supplier Error. If you're also setting up Oracle Inventory, you may already have performed this step when you set up Inventory. See: Defining Transaction Reasons, Oracle Inventory User's Guide.
Step 32: Define Receiving Options (Required)

You may not need to perform this step if you've already defined receiving options in

Step 6 Define Organizations and Organization Relationships. See: Defining Receiving Options.

Context:

This step needs to be performed for all inventory organizations. Use the Change Organization function in the Purchasing menu to perform this step for each inventory organization.

Step 33: Set Up Transaction Managers and Resubmission Intervals

This step involves the following tasks:

• Start the following transaction managers. See: Administer Concurrent Managers Window,

Oracle Applications System Administrator's Guide. (Required)

Oracle Purchasing User's Guide
• Receiving transaction manager

• Document approval manager

• Define resubmission intervals for concurrent processes. Contact your system administrator if you need help with this task. See: Defining Managers and Their Work Shifts, Oracle Applications System Administrator's Guide. (Optional)
Step 34: Define Suppliers (Required)

You may not need to perform this step if you have already installed and set up Oracle Payables or performed a common-applications setup. See: Entering Supplier Information, Oracle iSupplier Portal Implementation Guide.
Step 35: Set Up Workflow Options (Required with defaults)

Purchasing uses Oracle Workflow technology to handle requisition and purchase order approvals, automatic creation of purchase orders and releases, purchase order changes (specifically, any additional approvals those changes require), and receipt confirmation. Workflow runs in the background. It automates these procurement activities whenever you submit a document for approval, create a requisition, or change a purchase order.

Default:

Purchasing provides default functionality in these Workflow-automated processes. For example, one default functionality is for the automatic document creation workflow to create purchase orders automatically from approved requisition lines. If you do not want this default functionality, you can easily change it in the Oracle Workflow Builder.

For descriptions of the other defaults that Purchasing provides, see: Choosing Workflow Options

Step 36: Submit Workflow-Related Processes

Start the following Workflow-related processes, if you haven't already done so in the previous step:

• Send Notifications for Purchasing Documents process. See: Send Notifications for Purchasing Documents, page 12-34. (Required)
• Workflow Background Engine. Whether you need to submit this process depends on the options you chose or the defaults you accepted as described in the section Choosing Workflow Options.
For instructions on submitting the Workflow Background Engine, see: To Schedule Background Engines,

Oracle Workflow Guide. (Required with defaults)
Default:

If you chose to accept the default Workflow options that Purchasing provides, you must start the Workflow Background Engine.

Step 37: Define Descriptive Flex fields (Optional)

If you do not want to define descriptive Flex fields now, you can define them at any Setting Up

time. See: Planning and Defining Descriptive Flex fields, Oracle Applications Flex fields Guide.

Step 38: Set Up Automatic Sourcing (Optional)

You can set up Purchasing to automatically default source document information from a purchase agreement or catalog quotation onto a requisition or purchase order line for a particular item and supplier. Or you can default just a supplier and optionally a supplier site. See: Setting Up Automatic Sourcing.

You can set up automatic sourcing now or at any time on an ongoing basis.

Step 39: Perform Additional System Administrator Setup

This step involves the following tasks:

• Define custom menus. (Optional)
• Define new responsibilities based on your business and security needs. See: Oracle Applications System Administrator's Guide, Oracle Applications System Administrator's Guide. (Optional)
• Define user names. Purchasing users must have user names, and the user names must be linked to an employee name. See: Users Window, Oracle Applications System Administrator's Guide. (Required)
• Define printers if you haven't already. See: Setting Up Your Printers, Oracle Applications System Administrator's Guide. (Optional)
Step 40: Define Manufacturing System and User Profiles (Required)

See: Setting User Profile Options,

Oracle Applications System Administrator's Guide. See: Common User Profile Options,

Oracle Applications System Administrator's Guide. See: Profile Options in Purchasing.
Context:
This step needs to be performed for each operating unit.