BP.083 SYSTEM DESIGN SPECIFICATIONS (TO-BE) Oracle iProcurement & Service Procurement – 12.0.1 Creation Date: 19 Aug 2011 Created By: Satya Prakash Kar Last Updated: Control Ref: Approvals: Project Manager Clover Infotech Milind Shitole
BP.083 SYSTEM DESIGN SPECIFICATIONS
(TO-BE)
Oracle iProcurement & Service
Procurement – 12.0.1
Creation Date: 19 Aug 2011
Created By: Satya Prakash Kar
Last Updated:
Control Ref:
Approvals:
Project Manager
Clover Infotech Milind Shitole
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Document Control
Change Record
Date Author Version Change Reference
19-Aug-2011 Satya Prakash Kar DRAFT
1.0
No previous document
Reviewers
Name Position
Milind Shitole Clover Project Manager
Albert Kumar Clover
Shrikant Garud Clover
Distribution
Copy No. Name Location
1 Milind Shitole Mumbai,India
2 Albert Kumar Mumbai,India
3 Shrikant Garud Mumbai,India
Note to Holders:
If you receive an electronic copy of this document and print it out, please write your
name on the equivalent of the cover page, for document control purposes.
If you receive a hard copy of this document, please write your name on the front
cover, for document control purposes.
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Table of Contents
1 LEGENDS ................................................................................................................................................... 7
2 INTRODUCTION - IPROCUREMENT .................................................................................................... 8
2.1 PURPOSE ............................................................................................................................................. 8 2.2 OVERVIEW ............................................................................................................................................. 8 2.3 IPROCUREMENT OVERVIEW .................................................................................................................... 9
3 CONFIGURATION ACTIVITIES ........................................................................................................... 10
3.1 OVERVIEW ........................................................................................................................................... 10 3.2 CONFIGURATION ACTIVITIES IN IPROCUREMENT .................................................................................... 10
4 CATALOGUE MANAGEMENT (PROCESS ID- REQ01) ..................................................................... 11
4.1 INTERNAL CATALOGUE ......................................................................................................................... 11 4.1.1 Process Overview ........................................................................................................................ 11 4.1.2 Process Pre-requisites ................................................................................................................. 11 4.1.3 Process Flow ............................................................................................................................... 11 4.1.4 Process Description ..................................................................................................................... 12 4.1.5 Process Control ........................................................................................................................... 12 4.1.6 Process Output ............................................................................................................................ 12 4.1.7 Process Gaps ............................................................................................................................... 12
4.2 UPLOAD OF SUPPLIER CATALOGUE INTO IPROCUREMENT ........................................................................ 13 4.2.1 Process Overview ........................................................................................................................ 13 4.2.2 Process Pre-requisites ................................................................................................................. 13 4.2.3 Process Description ..................................................................................................................... 13 4.2.4 Process Flow ............................................................................................................................... 13 4.2.5 Process Control ........................................................................................................................... 14 4.2.6 Process Output ............................................................................................................................ 14 4.2.7 Process Gaps ............................................................................................................................... 14
5 REQUISITIONING PROCESS (PROCESS ID- REQ02) ....................................................................... 15
5.1 OVERVIEW ........................................................................................................................................... 15 5.2 REQUISITION FOR ISSUE OF STOCK ITEMS FROM MAIN STORE (PROCESS ID - REQ02.01) ........................... 15
5.2.1 Process Overview ........................................................................................................................ 15 5.2.2 Process Prerequisites ................................................................................................................... 15 5.2.3 Process Flow ............................................................................................................................... 16 5.2.4 Process Description ..................................................................................................................... 16 5.2.5 Process Output ............................................................................................................................ 17 5.2.6 Process Gaps ............................................................................................................................... 17
5.3 REQUISITION FOR EXPENSE ITEMS LIKE FURNITURE, OFFICE EQUIPMENT ETC (PROCESS ID – REQ02.02) ..... 17 5.3.1 Process Overview ........................................................................................................................ 17 5.3.2 Process Prerequisites ................................................................................................................... 17 5.3.3 Process Flow ............................................................................................................................... 18 5.3.4 Process Description ..................................................................................................................... 18 5.3.5 Process Output ............................................................................................................................ 19 5.3.6 Process Gaps ............................................................................................................................... 19
5.4 REQUISITION FOR EXPENSE ITEMS LIKE FURNITURE, OFFICE EQUIPMENT ETC WITH BPA (PROCESS ID – REQ
02.03) 19 5.4.1 Process Overview ........................................................................................................................ 19
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5.4.2 Process Prerequisites ................................................................................................................... 19 5.4.3 Process Flow ............................................................................................................................... 20 5.4.4 Process Description ..................................................................................................................... 21 5.4.5 Process Output ............................................................................................................................ 21 5.4.6 Process Gaps ............................................................................................................................... 21
5.5 REQUISITION FOR NON-CATALOGUE ITEMS LIKE FURNITURE, OFFICE EQUIPMENT ETC (PROCESS ID – REQ
02.04) 22 5.5.1 Overview ..................................................................................................................................... 22 5.5.2 Process Prerequisites ................................................................................................................... 22 5.5.3 Process Flow ............................................................................................................................... 23 5.5.4 Process Description ..................................................................................................................... 23 5.5.5 Process Output ............................................................................................................................ 24 5.5.6 Process Gaps ............................................................................................................................... 24
5.6 REQUISITION FOR NON-CATALOGUE SERVICES LIKE MAINTENANCE, CATERING, RENTAL HIRE ETC (PROCESS
ID – REQ 02.05) ............................................................................................................................................... 24 5.6.1 Overview ..................................................................................................................................... 24 5.6.2 Process Prerequisites ................................................................................................................... 24 5.6.3 Process Flow ............................................................................................................................... 25 5.6.4 Process Description ..................................................................................................................... 25 5.6.5 Process Output ............................................................................................................................ 26 5.6.6 Process Gaps ............................................................................................................................... 26
6 INTRODUCTION – SERVICE PROCUREMENT (PROCESS ID – REQ03) ....................................... 27
6.1 OVERVIEW ........................................................................................................................................... 27 6.1.1 New Service Line Types ............................................................................................................... 27 6.1.2 Professional and Business Service Requisition ............................................................................. 27 6.1.3 Contractor Request ...................................................................................................................... 27 6.1.4 Requisition Tracking and Change Management ............................................................................ 28 6.1.5 Invoice and Payment .................................................................................................................... 28
7 SERVICE PROCUREMENT PROCESS (PROCESS ID – REQ04) ....................................................... 29
7.1 REQUISITIONS FOR NON-CATALOGUE SERVICES LIKE CONSULTING SERVICES (PROCESS ID – REQ 04.01) .... 29 7.1.1 Process Overview ........................................................................................................................ 29 7.1.2 Process Pre-requisites ................................................................................................................. 29 7.1.3 Process Flow ............................................................................................................................... 29 7.1.4 Process Description ..................................................................................................................... 30 7.1.5 Process Output ............................................................................................................................ 30 7.1.6 Process Gaps ............................................................................................................................... 30
7.2 REQUISITIONS FOR FIXED PRICE TEMPORARY LABOR – CONTRACTOR REQUEST (PROCESS ID – REQ 04.02) . 30 7.2.1 Process Overview ........................................................................................................................ 30 7.2.2 Process Pre-requisites ................................................................................................................. 31 7.2.3 Process Flow ............................................................................................................................... 32 7.2.4 Process Description ..................................................................................................................... 32 7.2.5 Process Output ............................................................................................................................ 33 7.2.6 Process Gap ................................................................................................................................ 33
8 REQUISITION AMENDMENT / CANCELLATION (PROCESS ID – REQ05) ................................... 34
8.1 OVERVIEW ........................................................................................................................................... 34 8.2 REQUISITION AMENDMENT / CANCELLATION (PROCESS ID – REQ05.01) ................................................... 34
8.2.1 Process Overview ........................................................................................................................ 34 8.2.2 Process Pre-requisites ................................................................................................................. 34 8.2.3 Process Description ..................................................................................................................... 35
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8.2.4 Process Control ........................................................................................................................... 35 8.2.5 Process Output ............................................................................................................................ 35 8.2.6 Process Gap ................................................................................................................................ 35
9 RECEIPT OF ITEMS IN IPROCUREMENT (PROCESS ID – REQ06) ............................................... 36
9.1 OVERVIEW ........................................................................................................................................... 36 9.2 PROCESS PRE-REQUISITES ..................................................................................................................... 36 9.3 PROCESS DESCRIPTION .......................................................................................................................... 36 9.4 PROCESS OUTPUT ................................................................................................................................. 36 9.5 PROCESS GAP ...................................................................................................................................... 36
10 RETURN TO SUPPLIER IN IPROCUREMENT (PROCESS ID – REQ07) ..................................... 37
10.1 OVERVIEW ........................................................................................................................................... 37 10.2 PROCESS PRE-REQUISITES ..................................................................................................................... 37 10.3 PROCESS DESCRIPTION .......................................................................................................................... 37 10.4 PROCESS CONTROL ............................................................................................................................... 37 10.5 PROCESS OUTPUT ................................................................................................................................. 37 10.6 PROCESS GAP ....................................................................................................................................... 37
11 OPEN AND CLOSED ISSUES ............................................................................................................. 38
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1 LEGENDS
Functional Department; letters within bracket indicates specific location
Approval of the requisition document will be based on approval
authority setup in the system
Manual task
Automated task; variation of shading refers to non-standard automated
system
Flow of task; indicates continuous timeline
Indicates break in timeline i.e. succeeding task occurs with a break in
time (days, weeks, month)
Documents/reports; arrow directions indicate input/output to/from the
event; shading for automated documents/reports
Indicates control
An external System or an external party
Forms used as input for activities
Decision box
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2 INTRODUCTION - IPROCUREMENT
2.1 PURPOSE
This document is aimed towards providing the process design for the proposed solution for Requisitioning &
Receiving activities using Oracle iProcurement to facilitate empowering of end users and eliminate the need
for involvement of Procurement Professionals in non-value added activities at Birla Sun life insurance (BSLI)
2.2 OVERVIEW
This document provides details on how end-users would requisition and receive their items in Oracle
iProcurement. The process flows for various transactions are discussed and detailed, right from inception to
conclusion of each process, highlighting the control aspects at each stage of the process.
For each of the processes, an „Overview‟ is provided which is followed by who is the supplier for the process,
what is the input, and Process „Prerequisites‟. Subsequently, the various activities that need to be carried out
for the process are covered in Process flow and Process Description. After that different Process Controls and
Process output along with Gaps and Accounting entries for the process is covered. In addition, data migration
impact, with interface if any and a list of relevant reports along with brief report functionality for each of the
processes is also provided.
This document covers only those processes that will be processed through Oracle Internet Procurement. All
other procurement processes would be covered in the System Design document for other modules like
Purchasing, Sourcing, Procurement Contract, Order Management etc. In addition to iProcurement processes, it also covers the System Configuration activities required to be carried out in Oracle iProcurement as below:
Configuration Activities
Cataloguing Process
Requisitioning Process
Receiving Process
Return to Supplier Process.
This document will be the defining guideline for the rest of the project and will serve as the basis for the
following:
Gap Identification & Analysis.
Test Scripts. Standard Operating Procedures.
System Acceptance Testing.
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2.3 IPROCUREMENT OVERVIEW
The Procurement to Payment cycle (also known as the „Requisition to Cheque‟ cycle), which is one of the critical transaction cycles in any Organization, starts with the Requisitioning activities. An efficient and effective
Procurement to Payment cycle calls for a tight integration with the following functions/departments:
End User Departments (who raise Requisition for goods and services)
Purchasing & Supplier Relations Management
Additionally, iProcurement module also allow requisitions for Issue from various stores (Transfer / Issue
transaction for the same is completed in Order management module).
The Internet Procurement bundle of Oracle Applications, which includes Oracle iProcurement, Oracle Purchasing
and Oracle Internet Supplier modules among others, provides the above integration in a seamless manner with the
other modules such as Oracle Order Management, Oracle Inventory and Oracle Payables respectively for the above
functions.
The basic functionality that will be addressed Oracle iProcurement is discussed subsequently.
Oracle iProcurement
Oracle iProcurement provides an intuitive, web-shopping interface. With a web browser, users can quickly find
goods and services; add them to the shopping cart, and simply checkout. Users can also track and access order
status on a real-time basis. It includes a powerful search engine and multi-supplier self-guiding catalog capabilities,
so the users can quickly find the right items.
Further, iProcurement application facilitates the widely distributed usage of certain Procurement functionality such
as Requisitioning, Receipting etc.
The users will be able to communicate their requests in the form of Requisitions which then get automatically
routed for approval to their superiors. On approval by appropriate authorities, the Requisitions will be converted
into Purchase Orders/Releases with out any need for human involvement for those items defined as discussed in the previous paragraph. These Purchase Orders/Releases would be automatically/Manually forwarded to the suppliers
on approval.
For items for which Supply contract does not exist can be sourced using Oracle Sourcing module after creating
requisition for such items in iProcurement. Requisition for such items once raised in iProcurement can be directly
converted in to a sourcing document like RFQ, RFI or Auction in sourcing module.(TO BE DISCUSSED WITH
BSLI)
The suppliers can then ensure delivery of the ordered items to the requestors. The requestors will be able to record
receipt of the item online, thus completing the whole Requisition to receiving cycle without any need for a direct
involvement of the Procurement section. IProcurement also supports the returning of items to suppliers.
The Internal requisitioning feature is facilitated by the integration of iProcurement with Order Management. The
internal requisitions raised in iProcurement are converted in to internal sales order and are transferred to Order
Management, from where the requisitioned items are issued / transferred (MAY BE USED).
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3 CONFIGURATION ACTIVITIES
3.1 OVERVIEW
Oracle iProcurement / Purchasing require certain key configurations to be performed. These configurations have a
major impact on how the business is transacted on the system. The key configuration activities for Oracle
iProcurement are as below:
Definition of Information Templates
Definition of Realms
Setting up Profiles
The key configuration activities which need to be performed in Oracle Purchasing are listed below:
Key Flexfield Structures
Approval Rules & Assignments (IF ANY ADDITIONAL)
Position Hierarchy (IF ANY ADDITIONAL)
Document Access (IF ANY ADDITIONAL)
Account Generation Rules. (IF ANY ADDITIONAL)
3.2 CONFIGURATION ACTIVITIES IN IPROCUREMENT
Definition of Information Templates:
Information templates are required to capture additional information beyond what is available on the Item
Description. These templates can be defined with necessary columns and attached to a Specific Item and/or Item
Category(s). Once attached, the identified information will have to be entered whenever the item/category is being
used in the Internet Procurement requisitions. The information so captured is transferred as a Line Level
Attachment to the requisition line in Core Purchasing.
Definition of Realms:
A realm is a set of access privileges to item categories within internal catalogs. It is a list of objects (item source or
a category) to which a user is granted access.
Setting up Profiles
There are various Profile options for which appropriate values needs to be set-up. These Profile Options govern the behaviour of Oracle iProcurement. A value must be set for each profile option in iProcurement to specify how the
system controls access to and processes data.
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4 CATALOGUE MANAGEMENT (PROCESS ID- REQ01)
4.1 INTERNAL CATALOGUE
4.1.1 Process Overview
Oracle iProcurement module holds all the items and related details in the form of a Catalogue. These catalogs will
also store the sourcing information such as Blanket Purchase Agreements (BPA) and Requisition Templates. These
information elements will be extracted from the definitions in Core Purchasing module.
Users of iProcurement will be able to access items that are part of the Catalogue in iProcurement and generate
requisitions for the same. However, as mentioned earlier, the items visible for the user in the Catalogue will be
restricted by the Realm(s) attached to the User, if any.
4.1.2 Process Pre-requisites
The source information like Items, Blanket Agreements (Optional), Requisition Templates (Optional) etc which
is to be updated in the catalog should be first defined in the Core Purchasing application.
The cataloging process will be controlled by the centralized Purchasing Administrator position.
4.1.3 Process Flow
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4.1.4 Process Description
The information residing in Core Purchasing is brought into iProcurement by running the concurrent programs
provided by the Oracle Applications. These concurrent programs are:
Catalogue Data Extract - Classifications
Catalogue Data Extract - Items
These programs will be grouped under a request set and will be scheduled to run on a daily basis as a day end
activity without any need for any human involvement. (Except for the purpose of Review of Log). These programs
can also be submitted manually on a need basis by the user having access to this Request Set (ideally only the
Purchasing Administrator should have access to this request set for running it on a need basis).
The above concurrent programs will update the Internet Procurement catalogue with all relevant information such
as Items along with their Descriptions & Categories, Requisition Templates, Blanket Agreements and Standard / Catalogue quotations.
4.1.5 Process Control
The authority to update the Catalogue would be available only with the Purchasing Administrator. This will
ensure that standards and conventions are followed in item descriptions and classifications ensuring rich and user
friendly content which provides for ease of searching.
4.1.6 Process Output
The output of this Cataloguing process would be an updated Catalogue available to iProcurement users.
4.1.7 Process Gaps
No Gap
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4.2 UPLOAD OF SUPPLIER CATALOGUE INTO IPROCUREMENT
4.2.1 Process Overview
Oracle iProcurement supports loading of catalog data. Catalog data consists of items and services available for
purchase as well as the associated prices for these goods. These uploaded items would be available only in iProcurement and not in Oracle Inventory. Hence, all the items uploaded in this manner would have the Destination
type as “Expense”.
Catalogue data may have originated from any of the following sources:
Obtained directly from a supplier.
Created internally.
4.2.2 Process Pre-requisites
Catalogue obtained from the supplier or internally created catalogues.
4.2.3 Process Description
Download items and prices text file template “ItemPrice.txt” from e-Content Manager in iProcurement.
Fill the template with items and price as per the catalogue sent by the supplier.
Bulk load items from this Item data file prepared.
Verify the Upload results.
4.2.4 Process Flow
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4.2.5 Process Control
The authority to update the catalog would be available with the Purchasing Administrator.
This will ensure that standards and conventions are followed in item descriptions and classifications ensuring rich and user friendly content which provides for ease of searching.
4.2.6 Process Output
Uploading of supplier catalogues into iProcurement.
4.2.7 Process Gaps
No Gap.
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5 REQUISITIONING PROCESS (PROCESS ID- REQ02)
5.1 OVERVIEW
Purchase Requisition (PR) is the document by which a user requests Purchasing Department to procure goods and
services. The Purchase Requisitions shall carry all relevant details about the items or services to be procured. The
processes for preparation of following different types of Requisitions are discussed in the subsequent pages of this
document:
Requisition for Issue of Stock Items like Stationery from Main Store.
Requisition for Expense Items like Furniture, Office Equipment etc
Requisition for Expense Items like Furniture, Office Equipment etc with BPA.
Requisition for Non-Catalogue Services like Catering, Maintenance etc.
Requisition for Fixed Price based Services like Consultancy Services.
Requisition for Man power Services like Fixed Price Temp Labour.
All Purchase Requisitions by the users (except for the Requisitions for the replenishment of stock items) would be
created through the Internet Procurement Application using the “Internet Procurement” responsibility.
The users will raise Requisition in iProcurement for the following type of items:
Stock items for issue from Inventory ( Main Stores).
Expense Items.
Non-Catalog Items/Services.
5.2 REQUISITION FOR ISSUE OF STOCK ITEMS FROM MAIN STORE (PROCESS ID - REQ02.01)
5.2.1 Process Overview
Stock items are those items which are stocked in Inventory to be issued to the requestors based on approved
internal Requisitions. These are such items for which “internal order enabled” is checked in item master. This
process will create an internal sales order for all such items, which then can be issued to the requestor by shipping
the items in Order Management.
5.2.2 Process Prerequisites
Item attribute “internal order enabled” should be checked for all stock items.
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5.2.3 Process Flow
5.2.4 Process Description
Using the „Shop‟ function of iProcurement, users will access the Main Store and search for the item they require.
The catalog lines will reflect the list price and also a link “This item is internally stocked. Click here to select a
source”.
The user clicks the link and the Select Item Source opens up.
The user should select the source as “Internal”.
User clicks “Add to Cart” and adds the item to the Shopping Cart.
User clicks “View Cart and Check Out” to view the shopping cart
The user changes the quantity in the Shopping cart if required and clicks “Check Out” button.
The user enters the description for the requisition. In the Delivery section, the system defaults the need-by-date,
requestor name and the deliver-to-location.
The “Deliver to Inventory” checkbox would not be displayed for the Internet Procurement responsibility as
these requisitions are for expense items. This is accomplished by setting the profile “POR: Preferences - Selected
Items Default to Inventory” to “No” at the responsibility level.
In the Billing section, the system defaults the GL Date and the charge account.
Click on “Edit Lines” button to view the line details and to insert any line level attachments.
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System will build the approver list to which the document will be forward to for approval. The approver list will
be built based on the approval rules/limits granted to various positions as per the Authorities Manual.
User can review the requisition created and then submit the same for approval or directly submit the document
for approval. The document will get „Approved‟ if the preparer has appropriate authority otherwise it will be
forwarded electronically with the help of embedded workflow to the approver. The preparer can review the status of the Requisition, if required.
5.2.5 Process Output
Approved internal requisition for the stock items with all relevant details.
5.2.6 Process Gaps
NA
5.3 REQUISITION FOR EXPENSE ITEMS LIKE FURNITURE, OFFICE EQUIPMENT ETC (PROCESS ID – REQ02.02)
5.3.1 Process Overview
Expense items are those items that are not tracked in inventory and expensed out. These are such items for which
receipt routing is „Direct Delivery‟. Item codes would be defined in Oracle Inventory for some of the expense
items.
Input
Requisition by end users for expense items.
5.3.2 Process Prerequisites
The expense items should be defined in Oracle Inventory and extracted into iProcurement.
The expense items are not internally orderable.
All valid categories should have been defined in the system as „iProcurement enabled‟ and included in
Purchasing Category set. This is necessary as Category information is mandatory on all requisitions.
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5.3.3 Process Flow
5.3.4 Process Description
Using the „Shop‟ function of iProcurement, users will access the “Main Store” and searches for the item they require.
The user clicks the “Add to Cart” button and adds the item to the Shopping Cart.
The user enters the quantity and clicks the “Check Out” button.
In the Delivery section, the system defaults the requestor name and the deliver-to-location.
The “Deliver to Inventory” checkbox would not be displayed for the Internet Procurement responsibility as
these requisitions are for expense items. This is accomplished by setting the profile “POR: Preferences - Selected
Items Default to Inventory” to “No” at the responsibility level.
In the Billing section, the system defaults the GL Date and the charge account.
Click on “Edit Lines” button to view the line details and to insert any line level attachments.
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System will build the approver list to which the document will be forward to for approval. User clicks on the
“Add Approver” button and adds the name of the BU Finance to the approver list.
User can review the requisition created and then submit the same for approval or directly submit the document
for approval. The document will get „Approved‟ if the preparer has appropriate authority otherwise it will be
forwarded electronically with the help of embedded workflow to the approver. The preparer can review the status of the Requisition, if required.
On Approval, the requisitions would be transferred to the Requisition Pool for further action.
5.3.5 Process Output
Approved requisition for the items with all relevant details.
5.3.6 Process Gaps
NA
5.4 REQUISITION FOR EXPENSE ITEMS LIKE FURNITURE, OFFICE EQUIPMENT ETC WITH BPA (PROCESS ID –
REQ 02.03)
5.4.1 Process Overview
Expense items with Blanket purchase agreement are those items which are enabled for Direct / Automatic creation
of Release on the identified supplier based on approved Purchase Requisitions and is available for receipting in iProcurement to the requisition preparer. These are such items for which receipt routing is „direct receipt‟. This
process will ensure little or no involvement of Procurement professionals in the day-to-day transacting in these
items to meet the demand.
The Procurement section would put in place a mechanism (in the form of a Blanket Agreement), which will control
the price, and other terms. These will be defaulting onto the Releases created by the system against approved
Requisitions automatically.
Input
Requisition by end users for expense items with blanket purchase agreement.
5.4.2 Process Prerequisites
Suppliers should be identified for all items which are identified as Expense Items. Supplier selection process can
be achieved by Sourcing module by sending RFQ to all the potential suppliers and then selecting the suppliers after
receiving the quotes from all the suppliers.
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An approved Blanket Agreement should exist with these suppliers for such items.
Approved Supplier List should be defined for these items and the Blanket Agreements should have been attached
as the source documents in Approved Supplier List Attribute with release generation method as „Release Using
Auto-Create‟ to facilitate automatic creation of release on approval of Requisition lines having source document
reference.
5.4.3 Process Flow
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5.4.4 Process Description
Using the „Shop‟ function of iProcurement, users will access the “Main Store” and searches for the item they
require.
The user clicks the “Add to Cart” button and adds the item to the Shopping Cart.
The user enters the quantity and clicks the “Check Out” button.
In the Delivery section, the system defaults the requestor name and the deliver-to-location.
The “Deliver to Inventory” checkbox would not be displayed for the Internet Procurement responsibility as
these requisitions are for expense items. This is accomplished by setting the profile “POR: Preferences - Selected
Items Default to Inventory” to “No” at the responsibility level.
In the Billing section, the system defaults the GL Date and the charge account.
Click on “Edit Lines” button to view the line details and to insert any line level attachments.
System will build the approver list to which the document will be forward to for approval. User clicks on the
“Add Approver” button and adds the name of the BU Finance to the approver list.
User can review the requisition created and then submit the same for approval or directly submit the document for approval. The document will get „Approved‟ if the preparer has appropriate authority otherwise it will be
forwarded electronically with the help of embedded workflow to the approver. The preparer can review the status
of the Requisition, if required.
As and when the requisition status is changed to “Approved”, system will generate a release in this case for the
Requisition lines which are referenced against a Blanket Agreement with a supplier.
The Release will carry all relevant details (item, quantity and need by date) as in the requisition and will default
Price and other terms from the approved source document viz. Blanket Agreement.
The generated document will carry the name of the buyer identified against the requisition line items as in the
corresponding Source document and will be automatically approved if the concerned buyer has sufficient approval
limits as per the Authorities Manual.
Where the buyer does not have sufficient authority, the document would be submitted for the approval of the superior of the Buyer as per the defined Position Hierarchy in the system.
5.4.5 Process Output
Approved requisition for the expense items with all relevant details.
Automatically created Blanket Release based on the source document type.
5.4.6 Process Gaps
NA
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5.5 REQUISITION FOR NON-CATALOGUE ITEMS LIKE FURNITURE, OFFICE EQUIPMENT ETC (PROCESS ID – REQ
02.04)
5.5.1 Overview
Non Catalog Items are those items which are not part of the catalog. Non-catalog requisitions are raised for
purchases like Furniture, Office Equipment etc. When user search for an item and if it is not available in the
catalog, then they can raise non-catalog requisition for the same. User will provide a detail description for such
items with all relevant details like category, UOM etc. This requisition will go to purchasing department or contract
department depending on the value of the item.
Input
Requisition by end users for items which are not part of item master
5.5.2 Process Prerequisites
Smart Form Templates are defined by the purchasing administrator and assigned to the non-catalog store.
All valid categories should have been defined in the system as „iProcurement enabled‟ and included in
Purchasing Category set. This is necessary as category information is mandatory on all Requisitions.
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5.5.3 Process Flow
5.5.4 Process Description
Using the „Shop‟ function of iProcurement, users will access the appropriate non-catalog store.
An appropriate Smart Form is linked to the store by the administrator.
The user enters the information like Item Description, Quantity, Unit of Measure, Unit Price, Supplier etc. The
category will be defaulted and cannot be changed by the user. The user should make sure that they select the appropriate store for their purchases.
User clicks “Add to Cart” and adds to Shopping Cart.
User clicks “View Cart and Check out” to view the shopping cart and clicks “Check out” to proceed to check out.
The user enters the description for the requisition. In the Delivery section, the system defaults the need-by-date,
requestor name and the deliver-to-location.
In the Billing section, the system defaults the GL Date as today‟s date. The user has to enter the Project details if
applicable and the charge account.
Click on “Edit Lines” button to view the line details and to insert any line level attachments.
System builds the approver list to which the document will be forward to for approval. User should add the BU
Finance to the approver list by clicking the Add Approver button. The approver list will be built based on the
approval rules/limits granted to various positions as per the Authorities Manual.
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User can review the requisition created and then submit the same for approval or directly submit the document
for approval.
The user can review the status of the Requisition, if required.
5.5.5 Process Output
Approved purchase requisition for Non-catalog purchases like Furniture, Office Equipment etc.
5.5.6 Process Gaps
No Gap
5.6 REQUISITION FOR NON-CATALOGUE SERVICES LIKE MAINTENANCE, CATERING, RENTAL HIRE ETC
(PROCESS ID – REQ 02.05)
5.6.1 Overview
Quantity based Services are services where the Invoice is matched to Quantity. Users can raise non catalog
requisition for procuring such services. User will provide a detail description for such services with all relevant
details like category, UOM etc. This requisition will go to purchasing department or the contracts department depending on the value of the service. Quantity based services are raised for services like Maintenance, Catering,
Rental Hire etc.
Input
Requisition by end users for services which are not part of item master
5.6.2 Process Prerequisites
Smart Form Templates are defined by the purchasing administrator and assigned to the non-catalog store.
All valid categories should have been defined in the system as „iProcurement enabled‟ and. This is necessary as
category information is mandatory on all Requisitions.
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5.6.3 Process Flow
5.6.4 Process Description
Using the „Shop‟ function of iProcurement, users will access the appropriate non-catalog store.
An appropriate Smart Form is linked to the store by the administrator.
The user enters the information like Item Description, Quantity, Unit of Measure, Unit Price, Supplier etc. The
category will be defaulted and cannot be changed by the user. The user should make sure that they select the
appropriate store for their purchases.
User clicks “Add to Cart” and adds to Shopping Cart.
User clicks “View Cart and Check out” to view the shopping cart and clicks “Check out” to proceed to check out.
The user enters the description for the requisition. In the Delivery section, the system defaults the need-by-date,
requestor name and the deliver-to-location.
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In the Billing section, the system defaults the GL Date as today‟s date. The user has to enter the Project details if
applicable and the charge account.
Click on “Edit Lines” button to view the line details and to insert any line level attachments.
System builds the approver list to which the document will be forward to for approval. User should add the BU
Finance to the approver list by clicking the Add Approver button. The approver list will be built based on the approval rules/limits granted to various positions as per the Authorities Manual.
User can review the requisition created and then submit the same for approval or directly submit the document
for approval.
The user can review the status of the Requisition, if required.
5.6.5 Process Output
Approved purchase requisition for Quantity based services like Maintenance, Catering, and Rental Hire etc.
5.6.6 Process Gaps
No Gap
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6 INTRODUCTION – SERVICE PROCUREMENT (PROCESS ID – REQ03)
6.1 OVERVIEW
6.1.1 New Service Line Types
Line types reflect the different characteristics for the items and services purchased. Oracle Purchasing has
introduced three new line types that enable to purchase, receive and match to invoices based on amounts rather than
quantity. The three new line types include:
Fixed price Service: Used for general business services where the purchase and invoice are based on a dollar
amount of service.
Fixed price temporary labour: Used for contingent labour where you agree on a fixed price for the service rather
than a unit rate. This may be used in situations where the project duration may be difficult to predict. To minimize
financial risk, a company may negotiate a fixed price rather than a per unit charge.
6.1.2 Professional and Business Service Requisition
Unlike items that have fixed descriptions and attributes, services are generally difficult to catalog. Typically, users
request off-catalog buys for services through the non-catalog request process. User can use Smart forms for this
purpose. Smart Forms are templates that are defined by the purchasing administrator. For each service type, the
purchasing administrator can define default values for certain service attributes and optionally restrict the user from
overriding any defaults.
The combination of smart forms and information templates is especially powerful. Working in concert, they assist
requesters through the non-catalog request process while gathering detailed information, therefore eliminating the
possibility of buyer or supplier confusion.
Smart Forms provides the following capabilities to the purchasing administrator:
Define default values for data elements on the smart form
Optionally restrict the requester from overriding any default values
Optionally associate one or more information templates to a smart form
Create non-catalog request stores and associate one or more smart forms to the store
6.1.3 Contractor Request
Requesters may create requests for temporary labour. The Contractor Request captures job and skill requirements,
assignment information and optionally a statement of work. To ensure spending is directed to prefer staffing
providers, a list of preferred suppliers is made available to the requester along with any previously agreed pricing.
Based on the assignment duration, the requester enters a budget amount for labour and optionally a separate budget
amount for any contractor expenses. They may also indicate that interviews and candidate screening are required. If this option is selected, the supplier is automatically emailed the details of the request and purchase order generation
is delayed until a final candidate is selected. If multiple suppliers are selected as part of the request, then the
requester would have to go through an offline supplier negotiation process followed by the Assign Contractor
process in Oracle iProcurement. Once the requisition receives final approval, the purchase order may be
automatically generated.
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6.1.4 Requisition Tracking and Change Management
From Oracle iProcurement, requesters can view the status of their service requisitions and drill down to supporting
documents such as purchase orders, receipts and invoices. Requesters may also initiate changes to service requests.
For example, a contractor assignment may require an extension or early termination. Any changes requiring
approval are automatically routed for approval before they are communicated to the supplier.
6.1.5 Invoice and Payment
Service invoices are matched to purchase orders based on amount rather than quantity. Supplier invoices may be 2-
way matched to the original purchase order or 3-way matched to the approved timecard or service receipt for
maximum control.
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7 SERVICE PROCUREMENT PROCESS (PROCESS ID – REQ04)
7.1 REQUISITIONS FOR NON-CATALOGUE SERVICES LIKE CONSULTING SERVICES (PROCESS ID – REQ 04.01)
7.1.1 Process Overview
Amount-based services are those types of services where the invoice is matched against the amount of the service
rather than the quantity. Service Procurement enables to raise service requisitions billed based on the amount of the
service. e.g.) consulting services and any other service which has to be billed against the amount.
Input
Requisition by end users for amount-based services like consulting services.
7.1.2 Process Pre-requisites
All valid categories should have been defined in the system as „iProcurement enabled‟ and. This is necessary as
category information is mandatory on all Requisitions.
7.1.3 Process Flow
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7.1.4 Process Description
Using the „Shop‟ function of iProcurement, users will access the appropriate non-catalog store.
An appropriate Smart Form is linked to the store by the administrator.
The user enters the information like Item Description, Amount, Supplier etc. The category will be defaulted and
cannot be changed by the user. The user should make sure that they select the appropriate store for their purchases.
User clicks “Add to Cart” and adds to Shopping Cart.
User clicks “View Cart and Check out” to view the shopping cart and clicks “Check out” to proceed to check out.
The user enters the description for the requisition. In the Delivery section, the system defaults the need-by-date,
requestor name and the deliver-to-location.
In the Billing section, the system defaults the GL Date as today‟s date. The user has to enter the Project details if
applicable and the charge account.
Click on “Edit Lines” button to view the line details and to insert any line level attachments.
System builds the approver list to which the document will be forward to for approval. User should add the BU
Finance to the approver list by clicking the Add Approver button. The approver list will be built based on the approval rules/limits granted to various positions as per the Authorities Manual.
User can review the requisition created and then submit the same for approval or directly submit the document
for approval.
The user can review the status of the Requisition, if required.
7.1.5 Process Output
Approved purchase requisition for Amount based services like Consulting Services.
7.1.6 Process Gaps
No Gap
7.2 REQUISITIONS FOR FIXED PRICE TEMPORARY LABOR – CONTRACTOR REQUEST (PROCESS ID – REQ 04.02)
7.2.1 Process Overview
Service requisitions are initiated through Oracle iProcurement. Requesters now create requests for temporary labor.
The Contractor Request captures job and skill requirements, assignment information and optionally a statement of work. They may also indicate that interviews and candidate screening are required.
If multiple suppliers are selected as part of the request, then the requester would have to go through an offline
supplier negotiation process followed by the Assign Contractor process in Oracle iProcurement. Once the
requisition receives final approval, the purchase order may be generated.
Input
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Requisition by User with requirement for fixed rate labor services.
7.2.2 Process Pre-requisites
Service Procurement is enabled in iProcurement by setting the Profile Option “PO: Enable Service procurement” to Yes.
Job need to be defined for service requests.
Job need to be associated to a Purchasing category.
Profile option „PO: UOM class for Temp Labor” need to be set to Time.
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7.2.3 Process Flow
7.2.4 Process Description
Using the „Shop‟ function of iProcurement, users will access the “Contractor Request” tab.
The “Fast Track” flow is recommended which results in a contractor request status of “Not Applicable”. In a fast
track request flow, the requester does not care who the contractor is.
User has to select type “Fixed Price Temporary Labor” from the List of Values.
User need to search and select the appropriate Job (Which should be predefined).
The “Require candidate screening” option has to be set to “No” since this is a “Fast Track” flow. If set to “Yes”
and one or more than one preferred suppliers are selected, this would result in a “Full Track” flow where the
status of the request would be “Pending” and contractor assignment to the requisition is required after
appropriate screening activities are carried outside the system.
User has to enter the Contact Information. The system would default the start date, requester and location.
Clicking on “Continue” will open a new screen. If Blanket agreement for the service category (Defined in ASL) exists with any supplier or suppliers, system will show all of the suppliers if user selects “Use Preferred
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Supplier”. The user has to select one preferred supplier. If no approved supplier exists for category, then user can
select “Suggest Supplier and Contractor” and suggest some supplier.
User has to fill all other mandatory and optional details like estimated quantity, Target Rate etc.
User clicks “Add to Cart” and adds the contractor request to the shopping cart.
The status of the requisition would be “Not Applicable”.
User clicks “View Cart and Check out” to view the shopping cart and clicks “Check out” to proceed to check out.
The user enters the description for the requisition.
In the Billing section, the system defaults the GL Date as today‟s date. The user has to enter the Project details if
applicable and the charge account.
Click on “Edit Lines” button to view the line details and to insert any line level attachments.
System builds the approver list to which the document will be forward to for approval. User should add the BU
Finance to the approver list by clicking the Add Approver button. The approver list will be built based on the
approval rules/limits granted to various positions as per the Authorities Manual.
User reviews the requisition created and then submit the same for approval. The preparer can review the status of
the Requisition, if required.
After the requisition is approved, the status of the requisition would be displayed as “Approved, Not Applicable”.
7.2.5 Process Output
Approved requisition for the Fixed Price Temporary Labour.
7.2.6 Process Gap
No Gap.
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8 REQUISITION AMENDMENT / CANCELLATION (PROCESS ID – REQ05)
8.1 OVERVIEW
Requisitions prepared by the users can be amended either by themselves or by the Approver of the document if
they deem it fit or by the buyer where necessary.
Where the users who created the requisition want to amend the same, they can do so in iProcurement for
requisitions which have not been converted into a Purchase Order. The approvers can amend the requisition only if
the document is pending for approval with them. Buyers can amend the requisition (Only if encumbrance is not
enabled) only after the requisition is approved and awaiting further action in the Requisition Pool.
Cancellation of requisitions can be done only by the preparer of the requisition (i.e. owner of the document) or by the Buyer. The owner can cancel the requisition only until the requisition is converted into a Purchase Order. Once
converted, only the buyer can cancel the purchase Order and also cancel the underlying requisition. However, this
cancellation by the Buyer would be only optional so that the buyer cancels the Requisition only when found
necessary/relevant or when he has received a communication to this effect from the Requestor.
8.2 REQUISITION AMENDMENT / CANCELLATION (PROCESS ID – REQ05.01)
8.2.1 Process Overview
Requisitions prepared by the Users can be amended either by themselves or by the Approver of the document. Where the users who created the requisition want to amend the same, they can do so in iProcurement for
requisitions which have not been converted into a Purchase Order. The approvers can amend the requisition only if
the document is pending for approval with them.
Input
Changes to the requisition or Cancellation of the requisition.
8.2.2 Process Pre-requisites
The requisition should not have been converted onto a Purchase Order for it to be amended by the preparer.
The requisition should be pending for approval with the approver for them to be able to amend the same.
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8.2.3 Process Description
Using the „Requisitions‟ tab of iProcurement, User identifies the requisition that needs to be amended or
cancelled.
If the requester wishes to amend the purchase requisition, user selects the requisition and clicks on “Change”
button.
o The requester can directly change the entire requisition or select and change individual lines on
the requisition. The requisition would be withdrawn from the approval hierarchy and the status
would be changed to „Incomplete‟. The requester can then make the necessary amendments and
resubmit the same for approval.
If the requester wishes to cancel the purchase requisition, the user selects the requisition and clicks on “Cancel”
button.
o The requester can directly cancel the entire requisition or select and cancel individual lines on the
requisition.
The requester cannot cancel internal requisition lines after they have been linked to an internal sales order, unless the corresponding internal sales order is also cancelled. If the sales order has been cancelled, then the requester
can cancel the internal requisition.
Where the approver wants the amendments to be performed by the preparer, he/she can then send the requisition
using “Request Information” with appropriate comments to inform the preparer of the required information.
In all the above requisitioning processes if an approver want to reject a requisition then also he/she will use
“Request Information” functionality as information requested is mandatory in that case.
8.2.4 Process Control
Requisitions cannot be amended or cancelled by the preparer after they are placed on a Purchase Order.
If any changes are required to be made to the requisition when the requisition is converted in to a Purchase order, requester needs to take the approval of the buyer. Only after buyer approval changes or cancellation of
requisition can be done.
Buyer cannot modify the requisition if encumbrance is enabled. However, if encumbrance is not enabled, buyer
has to exercise a manual control of returning the modified requisition to the preparer for re-approval where
required.
8.2.5 Process Output
Cancelled or amended requisition by requester.
8.2.6 Process Gap
No Gap.
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9 RECEIPT OF ITEMS IN IPROCUREMENT (PROCESS ID – REQ06)
9.1 OVERVIEW
The receipt functionality in iProcurement would be used for receiving the following:
Expense Items.
Non-catalog items and services.
Only the requisition for which the purchase order receipt routing is “Direct Delivery” can be received in
iProcurement.
9.2 PROCESS PRE-REQUISITES
All items, which are to be received by the users in iProcurement, would have to be defined with „Direct Delivery‟ as the Receiving Option and Receipt Required Flag as „Y‟.
9.3 PROCESS DESCRIPTION
User clicks on the “Receiving” tab in the iProcurement Home Page.
The requisitions which are yet to be received will be displayed in the “Requisitions to Receive” section. User
clicks the “Receive” icon against the requisition to be received.
In the “Receive Items: Select Items” page, user selects the requisition, enters the receipt quantity/amount and
clicks on the “Next” button.
In the “Receive Items: Enter Receipt Information” page, enter the Receipt Date and other information like
Waybill, Packing Slip, Comments and click “Next” button..
In the “Receive Items: Review and Submit” page, user reviews the receipt information and clicks “Submit”
button.
The receipt number is displayed in the Confirmation Page.
9.4 PROCESS OUTPUT
Creation of a receipt transaction in the system completing the Requisition to receiving cycle.
9.5 PROCESS GAP
No Gap.
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10 RETURN TO SUPPLIER IN IPROCUREMENT (PROCESS ID – REQ07)
10.1 OVERVIEW
Return to Supplier enables a user to return items to the supplier after they have received them. “Return to Supplier”
Functionality in iProcurement will be used for returning the following types of items:
Expense Items received in iProcurement
Non-catalog items or services received in iProcurement.
10.2 PROCESS PRE-REQUISITES
Item must be received in iProcurement using receipt functionality of iProcurement.
10.3 PROCESS DESCRIPTION
User clicks on the “Receiving” tab in the iProcurement Home Page.
Click on the “Return Item” link.
In the “Return Items: Find Receipt” page, enter the return quantity for the receipt and click on the “Next” button.
In the “Return Items: Enter Return Information” page, enter Return Information like Reason, Return material
authorization and Comments.
Reason need to be selected from LOV.
In the “Return Items: Review and Submit Return” page, review the return information and click on the “Submit”
button.
The Confirmation page is displayed.
10.4 PROCESS CONTROL
Only the items that are received can be returned.
10.5 PROCESS OUTPUT
Return Transaction with item return to the supplier.
10.6 PROCESS GAP
No Gap.
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11 OPEN AND CLOSED ISSUES
Open Issues
ID Issue Resolution Responsibility Target Date Impact Date
01 Need a
discussion
whether to
use RFQ or
Not.
Albert/Milind/BSLI Team TBD
Closed Issues
ID Issue Resolution Responsibility Target Date Impact Date