Create Purchase Order (PO) in Oracle Apps

 Create a Purchase order (PO) in Oracle Apps

A Purchase order is a commercial document and first official order issued by the buyer to the supplier, indicating types, quantities, and agreed prices for products or services the supplier will provide to the buyer.

Basically, there are four types of Purchase Orders, viz

Standard Purchase Order	Used for One-time purchases for goods and services. Here you know the item, price, payment terms an delivery schedule
Planned Purchase Order	Created when you have long-term agreement with the supplier. You must specify the details of goods and services, payment terms and the tentative delivery schedule
Blanket Purchase Agreement	Created when the details of items and services, payment terms are known but not specific about the delivery schedule
Contract Purchase Agreement	Created when the terms and conditions of a purchase are known but specific goods and services are not.

Let’s create a Standard Purchase Order.

Here, we will Auto Create a Purchase Order based on Approved Requisition.

Navigation: Purchasing>> Auto Create

Enter requisition number and click Find to navigate to Auto Create documents window

Find Requisition lines

Auto Create Document

Select your Requisition Line by ticking the check box next to the Requisition Line

Action:                             Create

Document Type:              Standard PO

Grouping:                        Default

Click Automatic button and click create button in the New Document form. By clicking Automatic button, a standard PO is created based on the details provided in the Purchasing requisition.

You can select Supplier either in the New Document form or in thePurchase Order form

New document

Auto Create to PO

Status represents the status of the document. Incomplete is the default status for all purchase orders until they are submitted for the first time for approval.

Click Shipments button.

Shipment number, Org, Ship-to, UOM, Quantity and Need-by-date are shown by default. These fields can be edited as needed. You can split the lines and can change the ship-to Organization, quantity of items to be shipped and delivery date.

[you can request the supplier to supply some of the quantities to be supplied by the need-by date you provided and rest of the quantities (to the same ship-to address or a different address) to a different need-by-date]

Shipments

Click More tab. The default values are generated

Shipments

Receipt Close Tolerance (%) determines when this line will close for receiving

Invoice Close Tolerance (%) determines when this line will close for invoicing

A Purchase Order has three main close points: Closed for Receiving,Closed for Invoicing (these two relate to a specific line) and Purchase Order itself has a closed status.

The entire order will not close automatically if all the lines are not closed for both receiving and invoicing. A tolerance of 0% indicates that it will close when the total amount received or invoiced equals the amount on the order, whereas a close tolerance of 100% indicates that no receipts or invoices are required for this order, which will close the lines for receiving as soon as the order is approved. Reviewing these default close tolerances on a regular basis is a good idea to ensure orders are properly controlled and closed with minimal intervention by the purchasing agent.

Select an option at Match approval Level

This determines the close point for an order.

2-way determines Purchase Order and Invoice quantities must match with in the tolerance before the corresponding invoice can be paid.

Quantity Billed = Quantity Ordered

Invoice Price = Purchase Order Price

3-way determines Purchase order, receipt, and invoice quantities must match within tolerance before the corresponding invoice can be paid.

Quantity Billed = Quantity Ordered

Invoice Price = Purchase Order Price

Quantity Billed = quantity Received

4-way determines Purchase order, receipt, accepted, and invoice quantities must match within tolerance before the corresponding invoice can be paid.

Quantity Billed = Quantity Ordered

Invoice Price = Purchase Order Price

Quantity Billed = quantity Received

Quantity Billed= Quantity Accepted

Select an Invoice Match Option

The Invoice Match Option determines whether the invoice will be matched to the Receipt or the PO when using 3-Way matching

Select PO when using 2-way and select PO or Receipt for 3-Way.

Enter the Receiving control information by clicking Receiving Controlsbutton

Receiving Controls

Enter distributions for the shipments by clicking Distributions button

Distributions

Click on More tab. The Requisition number from which this Purchase Order has been created is shown by default.

Distributions

Click Terms to enter terms, conditions, and control information for purchase orders.

Terms

Click Currency button to enter and change currency information

Save your work and click Approve button for Approval process.

Approve Document

Click OK and check the status in the Purchase Order

Base tables for Purchase Order are as follows:

1.  PO_HEADERS_ALL (SEGMENT1 column in this table represents the Document number)

This table stores header information of a Purchasing Document. You need one row for each document you create.

The following are the documents that use PO_HEADERS_ALL

RFQ’s, Quotations, Standard Purchase Order, Planned Purchase Order, Blanket Purchase Order and Contracts

Important columns of this table:

PO_HEADER_ID, SEGMENT1, TYPE_LOOKUP_CODE, VENDOR_ID, VENDOR_SITE_ID, CLOSED_CODE

PO_HEADER_ID is a unique system generated primary key and is invisible to the users.

SEGMENT1 is the document number

You can uniquely identify a row in PO_HEADERS_ALL using ORG_ID, SEGMENT1, and TYPE_LOOKUP_CODE, or using PO_HEADER_ID.

Sample queries:

SELECT PO_HEADER_ID, TYPE_LOOKUP_CODE FROM PO_HEADERS_ALL WHERE SEGMENT1= ‘311’;

SQL Query

SELECT PO_HEADER_ID, AGENT_ID, TYPE_LOOKUP_CODE, CLOSED_CODE FROM PO_HEADERS_ALL WHERE SEGMENT1= ‘6044’;

2.  PO_LINES_ALL

This table stores the line information of a Purchasing Document.

Important columns of this table:

PO_LINE_ID:                       Unique identifier of the Document Line

PO_HEADER_ID:               Unique identifier of the Document Header (with reference to PO_HEADERS_ALL, PO_LINE_ID)

LINE_TYPE_ID:                 Unique identifier of Line_Type (with reference to PO_HEADERS_ALL, PO_LINE_ID and PO_HEADER_ID)

LINE_NUMBER:                 Line Number

ITEM_ID:                             Unique Item Identifier

ORG_ID:                              Unique Identifier of the Operating Unit

CLOSED_CODE:                 Status of the Document

Sample Queries:

SELECT PO_LINE_ID FROM PO_LINES_ALL WHERE PO_HEADER_ID= 110334;

SQL Query

SELECT LINE_TYPE_ID FROM PO_LINES_ALL WHERE PO_HEADER_ID= 110334 AND PO_LINE_ID= 173263;

3.  PO_LINE_LOCATIONS_ALL

This table contains the information related to purchase order shipment schedules and blanket agreement price breaks. You need one row for each schedule or price break you attach to a document line.

There following are the seven documents that use shipment schedules:

1. RFQs
2. Quotations
3. Standard purchase orders
4. Planned purchase orders
5. Planned purchase order releases
6. Blanket purchase orders
7. Blanket purchase order releases

Each row includes the location, quantity, and dates for each shipment schedule. Oracle Purchasing uses this information to record delivery schedule information for purchase orders, and price break information for blanket purchase orders, quotations and RFQs.

The following are the important columns of this table:

LINE_LOCATION_ID:                  Unique Identifier of Document shipment schedule

PO_HEADER_ID:                         Unique Identifier of Document header. (with reference to PO_HEADERS_ALL.po_header_id.)

PO_LINE_ID:                                Unique Identifier of Document line (with reference to PO_LINES_ALL.po_line_id)

QUANTITY:                                    Quantity ordered for Purchase Orders, RFQs and Quotations

QUANTITY_RECEIVED:                Quantity received until today

QUANTITY_ACCEPTED:               Quantity accepted after inspection

QUANTITY_REJECTED:               Quantity rejected after inspection

QUANTITY_BILLED:                     Quantity invoiced by Oracle Payables

QUANTITY_CANCELLED:             Quantity cancelled

TAXABLE_FLAG:                           indicates whether the shipment is taxable

ORG_ID:                                        Operating unit unique identifier

SHIP_TO_ORGANIZATION_ID:     Unique identifier of Ship-to organization

Sample Queries:

SELECT LINE_LOCATION_ID FROM PO_LINE_LOCATIONS_ALL WHERE PO_HEADER_ID= 110334 AND PO_LINE_ID= 173263;

SQL Query

SELECT QUANTITY, QUANTITY_RECEIVED, QUANTITY_ACCEPTED, QUANTITY_BILLED, QUANTITY_REJECTED, ORG_ID FROM PO_LINE_LOCATIONS_ALL WHERE LINE_LOCATION_ID= 264421;

SQL Query

4.      PO_DISTRIBUTIONS_ALL

This table contains the information related to accounting distribution of a purchase order shipment line. You need one row for each distribution line you attach to a purchase order shipment. There are four types of documents using distributions in Oracle Purchasing:

1. Standard Purchase Orders
2. Planned Purchase Orders
3. Planned Purchase Order Releases
4. Blanket Purchase Order Releases

Each row includes the destination type, requestor ID, quantity ordered and deliver-to location for the distribution.

Important columns of this table:

PO_DISTRIBUTION_ID:               This is the primary key for this table. It is a unique Document Distribution identifier.

PO_HEADER_ID, PO_LINE_ID

LINE_LOCATION_ID:                  Unique Identifier of the Document Shipment Schedule (with reference to PO_LINE_LOCATIONS_ALL, LINE_LOCATION_ID)

CODE_COMBINATION_ID:        Unique Identifier of General Ledger Charge Account (with reference to GL_CODE_COMBINATIONS.CODE_COMBINATION_ID)

REQ_DISTRIBUTION_ID:            Unique Identifier of a Requisition distribution (with Reference to PO_REQ_DISTRIBUTIONS_ALL.DISTRIBUTION_ID)

Sample Queries:

SELECT PO_DISTRIBUTION_ID FROM PO_DISTRIBUTIONS_ALL WHERE PO_HEADER_ID= 11033;

SQL Query

SELECT CODE_COMBINATION_ID FROM PO_DISTRIBUTIONS_ALL WHERE PO_DISTRIBUTION_ID= 13033;

SQL Query

5.      VENDORS_ALL

This table stores the general information about the suppliers.

6.      PO_VENDOR_SITES_ALL

This table stores information about the supplier sites. Each row includes the site address, supplier reference, purchasing, payment, bank, and general information.

7.      PO_RELEASES_ALL

This table stores information related to planned and blanket Purchase Order releases. Each row includes the buyer, date, release status, and release number. Each release must have at least one purchase order shipment.

8.      PO_VENDOR_CONTACTS

This table stores information about contacts related to Supplier site. Each row includes contact name and site.

9.      PO_ACTION_HISTORY

This table stores information about the approval and control history of a Purchasing Document. This table stores one record for each approval or control action an employee takes on a purchase order, purchase agreement, release or requisition.