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Oracle Purchase Order – Functional Flow

Functional Training  of Purchase Order Flow
What is flow of PO:

Step 1:We will be raising the Requisitions for the items which are needed.
Requisition is 2 types • Internal Requisition • Purchase
Internal Requisition is used when we are getting the items from one organization to another organization of the same business group.
Purchase Requisition is raised when we are getting the items from outside the business group.

Step 2:Once the Requisition has been approved, we will be sending (Request For Quotes) RFQ’s to different Suppliers. It contains the information regarding the type of RFQ, terms and conditions, shipments, currency.
RFQ is of 3 types
• Bid RFQ • Catalog • Standard
BID: Used for a fixed specific quantity, Location and date. This will be used for large or expensive price of equipments. That you have never order before. There won’t be price any breaks for a BID Quotation.
CATALOG: This will be used for high volume items for which your supplier sends information regularly. The CATALOG RFQ includes price breaks at different quantity levels.
STANDARD: It is used for items we need only once or not very often for a specific fixed quantity, location and date. It includes price breaks at different quantity levels.

Step 3:We will be receiving the quotations from different suppliers. Quotation is of 3 Types.
• Bid
• Catalog
• Standard

Step 4:Based on the quotations, we will be deciding the supplier and purchasing order is given to that supplier.
Purchasing is of 4 types
• Standard
• Planned
• Blanket
• Contract

Step 5:Once we receive the items from the Supplier we will issue the receipts to the Supplier. This is done in 3 ways.
• Two-Way: In 2-way we will compare PO and Invoice.• Three-Way: In 3-way we will compare the PO, Receipt and Invoice.• Four-Way: In 4-way we will compare PO, Receipt, Inspection and Invoice.

2-Way Matching verifies that Purchase order and invoice information match within your tolerances as follows:Quantity Billed <-Quantity Ordered Invoice Price <- Purchase Order Price (<- Sign is used because of tolerances)

3-Way Matching verifies that the receipt and invoice information match with the quantity tolerances defined:Quantity billed Quantity received

4-Way Matching verifies that acceptance documents and invoice information match within the quantity tolerances defined:Quantity billed <- Quantity accepted. (Acceptance is done at the time of Inspecting goods).Whether a PO shipment has 2-way, 3-way or 4-way matching can be setup in the Shipment Details zone of the Enter PO form (character).

Yes Yes 4-Way
Yes No 3-Way
No No 2-Way
In ‘More’ alternative region of Shipments block, you define the Invoice Matching option, where you can choose 2-way, 3-way or 4-way match.

Step 6:Because of these Transactions Inventory and Payables get affected.

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