1. Oracle PurchasingUsers GuideRelease 12.1Part No. E13410-05August 2010

2. Oracle Purchasing Users Guide, Release 12.1Part No. E13410-05Copyright 1996, 2010, Oracle and/or its affiliates. All rights reserved.Primary Author: Pratima MahtaniContributing Author: Srikanth Bevara, Kunal Dey, Chirag Vardia, Rakesh Chakravarthi, GurupackiarathiGandhi, Gowri ArurOracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarksof their respective owners.This software and related documentation are provided under a license agreement containing restrictions onuse and disclosure and are protected by intellectual property laws. Except as expressly permitted in yourlicense agreement or allowed by law, you may not use, copy, reproduce, translate, broadcast, modify, license,transmit, distribute, exhibit, perform, publish or display any part, in any form, or by any means. 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ContentsSend Us Your CommentsPreface1 Setting UpOverview of Setting Up............................................................................................................. 1-1Defining Locations.................................................................................................................. 1-18Defining Buyers...................................................................................................................... 1-20Defining Approval Groups..................................................................................................... 1-21Assigning Approval Groups................................................................................................... 1-24Annotating Purchasing Documents........................................................................................ 1-26 Managing Attachments...................................................................................................... 1-28 Attaching Notes to Purchasing Documents....................................................................... 1-33Defining Purchasing Options................................................................................................. 1-33Defining Receiving Options................................................................................................... 1-42Defining Requisition Templates............................................................................................ 1-46Purchasing Hazardous Materials............................................................................................ 1-50 Regulation Background..................................................................................................... 1-50 Defining Hazard Classes.................................................................................................... 1-53 Defining UN Numbers....................................................................................................... 1-54Defining Lookup Codes.......................................................................................................... 1-55Defining Quality Inspection Codes........................................................................................ 1-57Line Types in Purchasing Documents.................................................................................... 1-59 Defining Line Types........................................................................................................... 1-62Purchasing Services ................................................................................................................ 1-65Defining Document Types...................................................................................................... 1-67Defining Document Styles...................................................................................................... 1-73 iii 4. Purchase Order Communication Setup Steps........................................................................ 1-75 Center-Led Procurement Setup............................................................................................... 1-79 Controlling Purchasing Periods.............................................................................................. 1-82 Expense Charge Account Rules............................................................................................... 1-83 Choosing Workflow Options.................................................................................................. 1-85 iProcurement Setup Windows................................................................................................ 1-89 Oracle Services Procurement.................................................................................................. 1-90 Define Job and Category Association..................................................................................... 1-922Approval, Security, and Control Setting Up Document Approval and Security.......................................................................... 2-1 Position Hierarchies.................................................................................................................. 2-6 Document Security and Access................................................................................................. 2-7 Approval Routing.................................................................................................................... 2-10 Approval Authorization Control............................................................................................ 2-12Defining Approval Authorization Rules............................................................................ 2-13Using Approval Assignments............................................................................................ 2-15 Assigning Employees.............................................................................................................. 2-18 The Document Approval Process............................................................................................2-19Approved Documents and Supply.................................................................................... 2-21Document Status Checks................................................................................................... 2-21Document Submission Checks........................................................................................... 2-22Viewing and Responding to Approval Notifications.........................................................2-29 Submitting a Document for Approval.................................................................................... 2-32 Offline Approvers................................................................................................................... 2-38 Mass Forwarding Documents................................................................................................. 2-39 Document Control Overview.................................................................................................. 2-40Document Control Options................................................................................................ 2-41Purchase Order Control Matrices...................................................................................... 2-46Document Control Applicability Matrix............................................................................ 2-49Document Control Status Check Matrix............................................................................ 2-51Document Control Submission Check Matrix....................................................................2-53 Controlling Documents........................................................................................................... 2-57 MassCancel.............................................................................................................................. 2-61Defining MassCancel......................................................................................................... 2-61Define MassCancel Listing................................................................................................. 2-65Running MassCancel......................................................................................................... 2-67Run MassCancel Listing.....................................................................................................2-68iv 5. 3 RequisitionsOverview of Requisitions......................................................................................................... 3-1 Requisition Types................................................................................................................ 3-6 Reserving Funds for Requisitions........................................................................................ 3-8Reviewing Requisitions............................................................................................................ 3-9 Managing Requisitions........................................................................................................ 3-9 Updating Requisitions....................................................................................................... 3-12Overview of Internal Requisitions......................................................................................... 3-13 Demand for Internal Requisitions...................................................................................... 3-16 Internal Requisition Approvals.......................................................................................... 3-18 Creation of Internal Sales Orders....................................................................................... 3-19 Management of Internal Sales Orders................................................................................ 3-20 Pick Release for Internal Sales Orders................................................................................3-21 Ship Confirmation for Internal Sales Orders...................................................................... 3-21 Management of Internal Requisitions................................................................................ 3-22 Internal Requisitions Processing Summary....................................................................... 3-23 Internal Requisitions Setup Overview............................................................................... 3-24 Minimum Order Management Setup for Internal Requisitions......................................... 3-25 Minimum Shipping Execution Setup for Internal Requisitions......................................... 3-26 Minimum Purchasing Setup for Internal Requisitions.......................................................3-27 Minimum Inventory Setup for Internal Requisitions......................................................... 3-28 Online Processing Automation for Internal Requisitions.................................................. 3-30 Internal Requisitions Example........................................................................................... 3-31Finding Requisitions............................................................................................................... 3-36Using the Requisition Headers Summary Window............................................................... 3-39Using the Requisition Lines Summary Window....................................................................3-40Using the Requisition Distributions Summary Window...................................................... 3-42Entering Requisition Preferences........................................................................................... 3-44Entering Requisition Headers................................................................................................. 3-48Entering Requisition Lines..................................................................................................... 3-51Entering Requisition Distributions........................................................................................ 3-58Using Requisition Templates................................................................................................. 3-614 Purchase OrdersOverview of Purchase Orders................................................................................................... 4-1 Purchase Order Types.......................................................................................................... 4-2 Purchase Order Features...................................................................................................... 4-4Purchase Order Defaulting Rules........................................................................................... 4-10Finding Purchase Orders......................................................................................................... 4-23 v 6. Using the Purchase Order Headers Summary Window.................................................... 4-26Using the Purchase Order Lines Summary Window......................................................... 4-30Using the Purchase Order Shipments Summary Window................................................. 4-32Using the Purchase Order Distributions Summary Window.............................................4-35 Entering Purchase Order Preferences..................................................................................... 4-37 Entering Purchase Order Headers...........................................................................................4-40 Entering Purchase Order Lines............................................................................................... 4-46 Entering Purchase Order Price Reference Information.......................................................... 4-50 Entering Purchase Order Reference Document Information................................................. 4-51 Entering Purchase Order Miscellaneous Information........................................................... 4-53 Entering Purchase Agreement Information............................................................................ 4-55 Entering Purchase Order Temporary Labor Information.......................................................4-58 Entering Currency Information.............................................................................................. 4-60 Entering Purchase Order Details Information....................................................................... 4-61 Entering Purchase Order Shipments...................................................................................... 4-67 Entering Purchase Order Receiving Controls......................................................................... 4-71 Entering Purchase Agreement Price Break Information........................................................ 4-73 Entering Purchase Order Distributions.................................................................................. 4-75 Entering Outside Services Information.................................................................................. 4-79 Entering Purchase Order Notification Controls..................................................................... 4-80 Entering and Viewing Purchase Order Acceptances.............................................................. 4-82 Entering Releases.................................................................................................................... 4-84Entering Release Headers.................................................................................................. 4-84Entering Release Shipments............................................................................................... 4-87Entering Release Distributions........................................................................................... 4-93 Automatic Release Generation............................................................................................... 4-96 Copying Purchase Orders....................................................................................................... 4-99 Document Revision Numbering........................................................................................... 4-103Document Revision Rules................................................................................................ 4-104Document Reapproval Rules........................................................................................... 4-108 Changing Encumbered Documents...................................................................................... 4-113 Drop Shipments.................................................................................................................... 4-114 Tax Information in Purchasing............................................................................................. 4-116Viewing Tax Information................................................................................................. 4-117 Procurement Card Purchase Orders and Releases................................................................4-118 Global Agreements................................................................................................................ 4-1205Supply Base Management Overview of Sourcing, RFQs, and Quotations......................................................................... 5-1RFQs and Quotations.......................................................................................................... 5-4vi 7. Supplier Item Catalog............................................................................................................... 5-5 Finding Supplier Items........................................................................................................ 5-9 Using the Supplier Item Catalog Tabbed Regions............................................................. 5-13 Entering Order Pad Options (from Requisitions).............................................................. 5-16Receiving Price/Sales Catalog Information Electronically.....................................................5-18 Setting a Price Tolerance in a Price/Sales Catalog Update................................................. 5-20 Monitoring Price Increases in a Price/Sales Catalog Update.............................................. 5-21Overview of Automatic Sourcing........................................................................................... 5-24 Setting Up Automatic Sourcing......................................................................................... 5-27 Defining Sourcing Rules.................................................................................................... 5-30 Assigning Sourcing Rules and Bills of Distribution........................................................... 5-33Approved Supplier List........................................................................................................... 5-35 ASL Repository Maintenance.............................................................................................5-35 ASL Business Needs.......................................................................................................... 5-36 Defining Approved Supplier Statuses............................................................................... 5-37 Defining the Supplier and Item/Commodity Combination............................................... 5-40 Defining the Supplier-Item Attributes............................................................................... 5-43 View Approved Suppliers................................................................................................. 5-48Entering RFQs......................................................................................................................... 5-49 Entering RFQ Headers....................................................................................................... 5-49 Entering RFQ Lines............................................................................................................ 5-53 Entering RFQ Supplier Information................................................................................... 5-55 Entering RFQ Terms Information...................................................................................... 5-57 Entering RFQ Shipment Information................................................................................. 5-58 Entering RFQ Price Break Information.............................................................................. 5-60Entering Quotations................................................................................................................ 5-62 Entering Quotation Headers.............................................................................................. 5-62 Entering Quotation Lines................................................................................................... 5-66 Entering Quotation Terms Information............................................................................. 5-69 Entering Quotation Shipment Information........................................................................ 5-70 Entering Quotation Price Break Information..................................................................... 5-72Copying Quotations from RFQs............................................................................................. 5-74Approving Quotations............................................................................................................ 5-75 Finding Quotations for Approval...................................................................................... 5-75 Approving Quotation Shipments.......................................................................................5-77 Approving Entire Quotations............................................................................................ 5-79Defining Supplier Lists........................................................................................................... 5-81Managing Buyer Workload..................................................................................................... 5-83 Finding Requisition Lines for Review or Assignment....................................................... 5-83 Reviewing Buyer Workload............................................................................................... 5-85 Assigning Requisition Lines.............................................................................................. 5-86 vii 8. 6AutoCreate AutoCreate Documents Overview............................................................................................ 6-1AutoCreate Document Options........................................................................................... 6-3Additional AutoCreate Features.......................................................................................... 6-7Oracle iProcurement Requisitions........................................................................................6-8 Finding Requisition Lines for AutoCreate............................................................................... 6-9 Selecting AutoCreate Criteria................................................................................................. 6-12 Entering Document Information and Completing AutoCreate............................................. 6-15 Using the Document Builder.................................................................................................. 6-17 Modifying Requisition Lines.................................................................................................. 6-197Professional Buyers Work Center Buyers Work Center Overview................................................................................................ 7-1 Using the Demand Workbench: Requisitions.......................................................................... 7-3 Requisitions: Demand Workbench........................................................................................... 7-4 Purchase Orders....................................................................................................................... 7-10 Finding Standard Purchase Orders......................................................................................... 7-11 Entering Purchase Order Information.................................................................................... 7-12 Purchase Agreements.............................................................................................................. 7-17 Finding Agreements................................................................................................................ 7-18 Create And Update Agreements............................................................................................. 7-19 Pricing Transparency for Standard PO and Global Blanket Purchase Agreement............... 7-238Communication With Suppliers Overview of Supplier Communication.................................................................................... 8-1Printed Purchase Orders Overview..................................................................................... 8-39Receiving Overview of Receiving.............................................................................................................. 9-1Centralized Purchasing for Multiple Receiving Organizations............................................9-5Receiving Locations............................................................................................................. 9-6Movement Statistics............................................................................................................. 9-6Receiving Controls, Options, and Profiles........................................................................... 9-7Receipt Tolerances............................................................................................................. 9-12Return Material Authorizations (RMAs)........................................................................... 9-13Debit Memos...................................................................................................................... 9-14Drop Shipment Receipts.................................................................................................... 9-15Receiving Open Interface................................................................................................... 9-15viii 9. Advance Shipment Notices (ASNs)........................................................................................ 9-15Managing Receipts.................................................................................................................. 9-21Multiple Distributions........................................................................................................9-22Cascading Receipts and Receiving Transactions................................................................9-23Express Receipts and Receiving Transactions.................................................................... 9-23Entering Express Receipts.................................................................................................. 9-25Finding Expected Receipts................................................................................................. 9-25Entering Receipt Header Information................................................................................ 9-29Entering Receipt Lines....................................................................................................... 9-30Unordered Receipts................................................................................................................. 9-34Entering Unordered Receipts............................................................................................. 9-36Matching Unordered Receipts........................................................................................... 9-36Receiving Transactions........................................................................................................... 9-39Finding Receiving Transactions (Summary)...................................................................... 9-41Using the Receiving Headers Summary Window..............................................................9-44Using the Receiving Transaction Summary Window........................................................ 9-45Viewing Accounting Lines................................................................................................. 9-47Using the Receipt Header Details Window....................................................................... 9-50Finding Transaction Status Information............................................................................ 9-51Viewing Transaction Status Information........................................................................... 9-54Finding Receiving Transactions......................................................................................... 9-55Entering Receiving Transactions........................................................................................ 9-58Drilling Down to Purchasing from Oracle General Ledger............................................... 9-61Inspections............................................................................................................................... 9-63Inspecting Received Items................................................................................................. 9-65Returns..................................................................................................................................... 9-66Finding Returns................................................................................................................. 9-68Entering Returns................................................................................................................ 9-71Corrections............................................................................................................................... 9-73Finding Corrections........................................................................................................... 9-74Entering Corrections.......................................................................................................... 9-78Finding Intransit Shipments................................................................................................... 9-80Managing Shipments......................................................................................................... 9-81Control Numbers..................................................................................................................... 9-83Receiving Reports.................................................................................................................... 9-85Overview of Receipt Accounting............................................................................................ 9-86Setting Up Inventory Accruals........................................................................................... 9-89Accrual Process for Perpetual Accruals............................................................................. 9-94Monitoring Price Variances..............................................................................................9-101Reconciling AP Accrual Accounts Balance...................................................................... 9-102Accrual Process for Period-End Accruals........................................................................ 9-104 ix 10. Identifying Journal Entry Batches in General Ledger...................................................... 9-108Accrual Write Off............................................................................................................. 9-111 Automatic Offsets in Oracle Purchasing.............................................................................. 9-120Defining Purchase Order Receipt Accruals...................................................................... 9-120 Integration with Landed Cost Management......................................................................... 9-12110 Inquiries Viewing Action History.......................................................................................................... 10-1 Viewing Purchase Order Changes.......................................................................................... 10-311 Reports Accrual Write-Off Report........................................................................................................ 11-1 Advanced Shipment Notice Discrepant Receipts Report...................................................... 11-3 AP and PO Accrual Reconciliation Report............................................................................. 11-4 Backordered Internal Requisitions Report............................................................................. 11-6 Blanket and Planned PO Status Report.................................................................................. 11-7 Buyer Listing........................................................................................................................... 11-8 Buyers Requisition Action Required Report......................................................................... 11-9 Cancelled Purchase Orders Report....................................................................................... 11-11 Cancelled Requisitions Report............................................................................................. 11-11 Contract Status Report.......................................................................................................... 11-12 Country of Origin Report (by Item)...................................................................................... 11-13 Country of Origin Report (by Supplier)............................................................................... 11-14 Encumbrance Detail Report.................................................................................................. 11-15 Expected Receipts Report...................................................................................................... 11-17 Financials/Purchasing Options Listing.................................................................................11-19 Internal Requisition Status Report....................................................................................... 11-19 Internal Requisitions/Deliveries Discrepancy Report......................................................... 11-20 Invoice Price Variance Report............................................................................................... 11-21 Invoice Price Variance by Supplier Report.......................................................................... 11-22 Item Detail Listing................................................................................................................ 11-24 Item Summary Listing........................................................................................................... 11-25 Location Listing..................................................................................................................... 11-25 Matching Holds by Buyer Report......................................................................................... 11-27 Miscellaneous Accrual Reconciliation Report......................................................................11-28 New Supplier Letter Report.................................................................................................. 11-30 Open Purchase Orders Report (by Buyer)............................................................................ 11-31 Open Purchase Orders Report (by Cost Center)................................................................... 11-32 Overdue Supplier Shipments Report................................................................................... 11-33 Overshipments Report.......................................................................................................... 11-34x 11. Printed Change Orders Report (Landscape)......................................................................... 11-35Printed Change Orders Report (Portrait).............................................................................. 11-37Printed Purchase Order Report (Landscape)........................................................................ 11-39Printed Purchase Order Report (Portrait)............................................................................. 11-42Printed RFQ Report (Landscape).......................................................................................... 11-44Printed RFQ Report (Portrait)............................................................................................... 11-45Printed Requisitions Report..................................................................................................11-46Purchase Agreement Audit Report....................................................................................... 11-47Purchase Order Commitment by Period Report...................................................................11-48Purchase Order Detail Report............................................................................................... 11-49Purchase Order Distribution Detail Report..........................................................................11-51Purchase Order and Releases Detail Report......................................................................... 11-52Purchase Price Variance Report............................................................................................ 11-53Purchase Requisition Status Report..................................................................................... 11-54Purchase Summary Report by Category............................................................................... 11-55Purchasing Activity Register................................................................................................. 11-56Purchasing Interface Errors Report....................................................................................... 11-57Purge Purchasing Open Interface Processed Data............................................................... 11-59Quality Code Listing............................................................................................................. 11-59Quotation Action Required Report....................................................................................... 11-60Receipt Adjustments Report................................................................................................. 11-61Receipt Traveler..................................................................................................................... 11-63Receiving Account Distribution Report............................................................................... 11-64Receiving Exceptions Report.................................................................................................11-66Receiving Interface Errors Report......................................................................................... 11-67Receiving Transactions Register........................................................................................... 11-68Receiving Value Report.........................................................................................................11-70Receiving Value Report by Destination Account.................................................................11-73ReqExpress Templates Listing.............................................................................................. 11-74Requisition Activity Register................................................................................................ 11-74Requisition Distribution Detail Report................................................................................ 11-75Requisition Import Exceptions Report................................................................................. 11-76Requisitions on Cancelled Sales Order Report.................................................................... 11-77RFQ Action Required Report................................................................................................ 11-77Savings Analysis Report (by Buyer)..................................................................................... 11-78Savings Analysis Report (by Category)................................................................................ 11-79Standard Notes Listing.......................................................................................................... 11-80Substitute Receipts Report.................................................................................................... 11-81Summary Accrual Reconciliation Report............................................................................. 11-82Supplier Affiliated Structure Listing....................................................................................11-83Supplier Price Performance Analysis Report....................................................................... 11-84 xi 12. Supplier Purchase Summary Report.....................................................................................11-85Supplier Quality Performance Analysis Report................................................................... 11-86Supplier Service Performance Analysis Report................................................................... 11-87Supplier Volume Analysis Report........................................................................................ 11-89Suppliers on Hold Report..................................................................................................... 11-89Uninvoiced Receipts Report..................................................................................................11-90Unit of Measure Class Listing............................................................................................... 11-92Unit of Measure Listing........................................................................................................ 11-92Unordered Receipts Report................................................................................................... 11-9312Integration with Other ApplicationsIntegration for Engineering and Construction Industry........................................................ 12-1Landed Cost Management...................................................................................................... 12-4Pricing Transparency............................................................................................................... 12-613ProcessesAccrual Load............................................................................................................................ 13-1ASL Upgrade Process.............................................................................................................. 13-2Confirm Receipts Workflow Select Orders Process............................................................... 13-3Create Internal Sales Orders Process...................................................................................... 13-4Create Releases Process........................................................................................................... 13-5Fill Employee Hierarchy Process............................................................................................ 13-6Generate Sourcing Rules And ASLs From Blanket Agreements........................................... 13-6Import Price Catalog................................................................................................................ 13-8Import Standard Purchase Orders........................................................................................ 13-11Mass Update of Purchasing Documents............................................................................... 13-13Mass Update of Requisitions................................................................................................ 13-15Mass Close of Purchasing Documents.................................................................................. 13-16Payment on Receipt............................................................................................................... 13-16PO Output for Communication............................................................................................ 13-23Purchasing Database Administration................................................................................... 13-24Purchasing Documents Open Interface................................................................................ 13-25Receipt Accruals - Period-End Process..................................................................................13-25Receiving Transaction Processor.......................................................................................... 13-28Requisition Import Process................................................................................................... 13-29Reset Period End Accrual Flags.............................................................................................13-32Reschedule Requisitions Process.......................................................................................... 13-33Retrieve Time from Oracle Time and Labor (OTL).............................................................. 13-34Retroactive Price Update on Purchasing Documents........................................................... 13-34Send Notifications for Purchasing Documents.................................................................... 13-36xii 13. A Windows and Navigator PathsOracle Purchasing Windows and Navigator Paths.................................................................. A-1B Oracle Purchasing AlertsUsing Oracle Alert in Oracle Purchasing................................................................................. B-1 Predefined Purchasing Alerts.............................................................................................. B-2C Oracle Purchasing Profile Options and Profile Option CategoriesProfile Options and Profile Option Categories Overview...................................................... C-1Profile Option Category and Profile Options Descriptions.................................................... C-5D Function Security for PurchasingFunction Security for Purchasing............................................................................................. D-1E Procurement WorkflowsOverview of Procurement Workflows......................................................................................E-1Customization Guidelines........................................................................................................ E-2Using the Account Generator in Oracle Purchasing................................................................ E-6 Decide How to Use the Account Generator......................................................................... E-7 What the Account Generator Does in Oracle Purchasing ................................................... E-9 Customizing the Account Generator for Oracle Purchasing............................................. E-24 The Default Account Generator Processes for Oracle Purchasing..................................... E-30 Summary of the Generate Default Accounts Process........................................................ E-37 Generate Default Accounts Process Activities................................................................... E-39 Summary of the Generate Default Accrual Account Subprocess.......................................E-43 Summary of the Generate Default Budget Account Subprocess........................................E-43 Summary of the Generate Default Charge Account Subprocess....................................... E-44 Summary of the Generate Default Variance Account Subprocess..................................... E-44 Summary of the Build Expense Charge Account Subprocess............................................ E-45 Summary of the Build Inventory Charge Account Subprocess......................................... E-45 Summary of the Build Shop Floor Charge Account Subprocess........................................E-46 Summary of the Build Inventory Budget Account Subprocess......................................... E-46 Summary of the Build Project Account Subprocesses....................................................... E-47 Summary of the Get Charge Account for Variance Account Subprocess.......................... E-48 Summary of the Get Variance Account from Organization Subprocess............................ E-48 Summary of the Generate Accounts Using FlexBuilder Rules Process..............................E-49 Using the Workflow Monitor with the Account Generator............................................... E-49Requisition Approval Workflow............................................................................................ E-50 xiii 14. Customizing the PO Requisition Approval Workflow...................................................... E-51 The PO Requisition Approval Workflow Item Type......................................................... E-56 Summary of the Main Requisition Approval Process........................................................E-62 Main Requisition Approval Process Activities.................................................................. E-63 Summary of the Start of Approve Requisition Process......................................................E-67 Start of Approve Requisition Process Activities................................................................ E-68 Summary of the Verify Requisition Subprocess................................................................ E-69 Verify Requisition Subprocess Activities........................................................................... E-70 Summary of the Reserve At The Start Subprocess.............................................................E-71 Reserve At The Start Subprocess Activities....................................................................... E-71 Summary of the Verify Approval Authority Subprocess.................................................. E-72 Verify Approval Authority Subprocess Activities............................................................. E-73 Summary of the Approval List Routing Subprocess......................................................... E-74 Approval List Routing Subprocess Activities.................................................................... E-74 Summary of the Reject Requisition Subprocess................................................................. E-75 Reject Requisition Subprocess Activities........................................................................... E-76 Summary of the Return Requisition to Submitter Subprocess...........................................E-77 Return Requisition to Submitter Subprocess Activities..................................................... E-77 Summary of the Notify Approver Subprocess.................................................................. E-78 Notify Approver Subprocess Activities............................................................................. E-79 Summary of the Response with Approve Action Subprocess........................................... E-80 Response with Approve Action Subprocess Activities...................................................... E-80 Summary of the Response with Approve and Forward Action Subprocess......................E-81 Response with Approve and Forward Action Subprocess Activities................................ E-81 Summary of the Response with Forward Action Subprocess............................................ E-82 Response with Forward Action Subprocess Activities...................................................... E-83 Summary of the Response with Reject Action Subprocess................................................ E-83 Response with Reject Action Subprocess Activities...........................................................E-83 Summary of the Reserve Before Approve Subprocess.......................................................E-83 Reserve Before Approve Subprocess Activities................................................................. E-84 Summary of the Approve Requisition Subprocess............................................................ E-85 Approve Requisition Subprocess Activities...................................................................... E-86 Summary of the Print Document Subprocess.................................................................... E-87 Print Document Subprocess Activities.............................................................................. E-88 Summary of the Verify Approval Authority for Approve and Approve/Forward Action Subprocesses...................................................................................................................... E-88 Verify Approval Authority Subprocess Activities............................................................. E-89Purchase Order Approval Workflow......................................................................................E-89 Customizing the PO Approval Workflow......................................................................... E-90 The PO Approval Item Type............................................................................................. E-95 Summary of the PO Approval Top Process..................................................................... E-103xiv 15. PO Approval Top Process Activities............................................................................... E-104Summary of the PO Approval Process............................................................................ E-108PO Approval Process Activities.......................................................................................E-109Summary of the Verify PO Subprocess........................................................................... E-112Verify PO Subprocess Activities...................................................................................... E-112Summary of the Reserve Before Approve Subprocess.....................................................E-114Reserve Before Approve Subprocess Activities............................................................... E-114Summary of the Verify Approval Authority Subprocess................................................ E-116Verify Approval Authority Subprocess Activities........................................................... E-116Summary of the Approve PO Subprocess....................................................................... E-117Approve PO Subprocess Activities.................................................................................. E-118Summary of the Print, Fax, and Email Document Subprocesses..................................... E-120Print, Fax, and Email Document Subprocess Activities................................................... E-120Summary of the Approve and Forward PO Subprocess..................................................E-121Approve and Forward PO Subprocess Activities............................................................ E-122Summary of the Notify Approver Subprocess................................................................ E-124Notify Approver Subprocess Activities........................................................................... E-124Summary of the Find Approver Subprocess................................................................... E-126Find Approver Subprocess Activities.............................................................................. E-127Summary of the Forward PO Subprocess........................................................................ E-128Forward PO Subprocess Activities.................................................................................. E-129Summary of the Return PO to Submitter Subprocess...................................................... E-130Return PO to Submitter Subprocess Activities................................................................ E-130Summary of the Reject PO Subprocess............................................................................ E-131Reject PO Subprocess Activities...................................................................................... E-132Change Order Process Activities..................................................................................... E-133Workflow Processes for Approving Change Orders............................................................E-133Customizing the Change Order Workflow......................................................................E-133The Change Order Workflow Item Attributes................................................................. E-136Summary of the Get All Document Changes Subprocess................................................E-147Get All Document Changes Subprocess Activities.......................................................... E-147Summary of the Get All Blanket PO Changes Subprocess.............................................. E-149Get All Blanket PO Changes Subprocess Activities......................................................... E-149Summary of the Get All Contract PO Changes Subprocess.............................................E-150Get All Contract PO Changes Subprocess Activities....................................................... E-150Summary of the Get All Planned PO Changes Subprocess............................................. E-150Get All Planned PO Changes Subprocess Activities........................................................ E-151Summary of the Get All Release Changes Subprocess.................................................... E-152Get All Release Changes Subprocess Activities............................................................... E-152Summary of the Get All Standard PO Changes Subprocess............................................ E-153Get All Standard PO Changes Subprocess Activities...................................................... E-153 xv 16. Summary of the Do Document Changes Require Reapproval? Subprocess.................... E-154 Do Document Changes Require Reapproval? Subprocess Activities.............................. E-154 Summary of the Change Order Reserve Before Approve Subprocess............................. E-155 Change Order Reserve Before Approve Subprocess Activities....................................... E-156 Summary of the Approve PO (Change Order) Subprocess............................................. E-157 Approve PO (Change Order) Subprocess Activities........................................................E-158 Summary of the Print and Fax Document Processes (Change Order)............................. E-160 Print and Fax Document Process (Change Order) Activities........................................... E-161Workflow for Creating Purchase Orders and Releases....................................................... E-161 Customizing the Automatic Document Creation Workflow........................................... E-162 The PO Create Documents Item Type............................................................................. E-167 Summary of Overall Document Creation / Launch Approval Process............................ E-171 Overall Document Creation / Launch Approval Process Activities................................ E-172 Summary of the Verify Req Line Information Process.................................................... E-174 Verify Req Line Information Process Activities............................................................... E-176 Summary of the Does Req Line Have Enough Information To Automatically Create A Document? Process.......................................................................................................... E-178 Does Req Line Have Enough Information To Automatically Create A Document? Process Activities.......................................................................................................................... E-178 Summary of the Create and Approve Purchase Order Or Release Process..................... E-179 Create And Approve Purchase Order Or Release Process Activities.............................. E-180 Summary of the Get Buyer Subprocess........................................................................... E-181 Get Buyer Subprocess Activities...................................................................................... E-181 Using the Workflow Monitor for the PO Create Documents Workflow..........................E-182Confirm Receipts Workflow................................................................................................. E-184 Customizing the Confirm Receipts Workflow.................................................................E-184 The Confirm Receipts Workflow Item Type.................................................................... E-188 Summary of the Confirm Receipt Process....................................................................... E-191 Confirm Receipt Process Activities.................................................................................. E-192 Summary of the Notify Requester Subprocess................................................................ E-194 Notify Requester Subprocess Activities........................................................................... E-194PO Send Notifications Workflow.........................................................................................E-195 Customizing the PO Send Notifications for Purchasing Documents Workflow..............E-195 The PO Send Notifications for Purchasing Documents Item Type.................................. E-199 Summary of the PO Document Approval Reminder Process.......................................... E-202 PO Document Approval Reminder Process Activities.................................................... E-203Price/Sales Catalog Notification Workflow......................................................................... E-206 Customizing the Issue Notifications Process................................................................... E-208 The PO Catalog Price Tolerances Exceeded Notifications Item Type.............................. E-210 Summary of the Issue Notifications Process.................................................................... E-210 Issue Notifications Process Activities.............................................................................. E-211xvi 17. Debit Memo Notification Workflow.................................................................................... E-212 Customizing the Debit Memo Notification Workflow.................................................... E-212 The PO Debit Memo Notification Item Type................................................................... E-214 Summary of the Debit Memo Process..............................................................................E-215Process Navigator Workflows.............................................................................................. E-216PO Approval Error Workflow...............................................................................................E-217 Customizing the PO Approval Error Workflow..............................................................E-218 The PO Approval Error Item Type.................................................................................. E-221 Summary of PO Approval Error Workflow.................................................................... E-221F 21 CFR Part 11 Compliance: Oracle E-Records21 CFR Part 11 Overview........................................................................................................... F-1E-records and E-signatures for Oracle Purchasing................................................................... F-2Viewing Oracle E-Records and E-Signatures........................................................................... F-3G Complex Work in the Procurement SuiteComplex Work in the Procurement Suite................................................................................ G-1GLOSSARYIndex xvii 18. Send Us Your CommentsOracle Purchasing Users Guide, Release 12.1Part No. E13410-05Oracle welcomes customers comments and suggestions on the quality and usefulness of this document.Your feedback is important, and helps us to best meet your needs as a user of our products. For example: Are the implementation steps correct and complete? Did you understand the context of the procedures? Did you find any errors in the information? Does the structure of the information help you with your tasks? Do you need different information or graphics? If so, where, and in what format? Are the examples correct? Do you need more examples?If you find any errors or have any other suggestions for improvement, then please tell us your name, thename of the company who has licensed our products, the title and part number of the documentation andthe chapter, section, and page number (if available).Note: Before sending us your comments, you might like to check that you have the latest version of thedocument and if any concerns are already addressed. To do this, access the new Oracle E-Business SuiteRelease Online Documentation CD available on My Oracle Support and www.oracle.com. It contains themost current Documentation Library plus all documents revised or released recently.Send your comments to us using the electronic mail address: appsdoc_us@oracle.comPlease give your name, address, electronic mail address, and telephone number (optional).If you need assistance with Oracle software, then please contact your support representative or OracleSupport Services.If you require training or instruction in using Oracle software, then please contact your Oracle local officeand inquire about our Oracle University offerings. A list of Oracle offices is available on our Web site atwww.oracle.com. xix 19. PrefaceIntended Audience Welcome to Release 12.1 of the Oracle Purchasing Users Guide. This guide contains the information needed to implement and use Oracle Purchasing. See Related Information Sources on page xxii for more Oracle E-Business Suite product information.Deaf/Hard of Hearing Access to Oracle Support Services To reach Oracle Support Services, use a telecommunications relay service (TRS) to call Oracle Support at 1.800.223.1711. An Oracle Support Services engineer will handle technical issues and provide customer support according to the Oracle service request process. Information about TRS is available at http://www.fcc.gov/cgb/consumerfacts/trs.html, and a list of phone numbers is available at http://www.fcc.gov/cgb/dro/trsphonebk.html.Documentation Accessibility Our goal is to make Oracle products, services, and supporting documentation accessible to all users, including users that are disabled. To that end, our documentation includes features that make information available to users of assistive technology. This documentation is available in HTML format, and contains markup to facilitate access by the disabled community. Accessibility standards will continue to evolve over time, and Oracle is actively engaged with other market-leading technology vendors to address technical obstacles so that our documentation can be accessible to all of our customers. For more information, visit the Oracle Accessibility Program Web site at http://www.oracle.com/accessibility/. xxi 20. Accessibility of Code Examples in DocumentationScreen readers may not always correctly read the code examples in this document. Theconventions for writing code require that closing braces should appear on an otherwiseempty line; however, some screen readers may not always read a line of text thatconsists solely of a bracket or brace.Accessibility of Links to External Web Sites in DocumentationThis documentation may contain links to Web sites of other companies or organizationsthat Oracle does not own or control. Oracle neither evaluates nor makes anyrepresentations regarding the accessibility of these Web sites.Structure1 Setting Up2 Approval, Security, and Control3 Requisitions4 Purchase Orders5 Supply Base Management6 AutoCreate7 Professional Buyers Work Center8 Communication With Suppliers9 Receiving10 Inquiries11 Reports12 Integration with Other Applications13 ProcessesA Windows and Navigator PathsB Oracle Purchasing AlertsC Oracle Purchasing Profile Options and Profile Option CategoriesD Function Security for PurchasingE Procurement WorkflowsF 21 CFR Part 11 Compliance: Oracle E-RecordsG Complex Work in the Procurement SuiteGLOSSARYRelated Information SourcesYou can choose from many sources of information, including online documentation,training, and support services, to increase your knowledge and understanding of OraclePurchasing.Warning: This guide includes information about many features ofOracle Applications other than Oracle Purchasing. These other OracleApplications may require separate licenses, and must be fully installedxxii 21. to take advantage of their features.Online DocumentationAll Oracle Applications documentation is available online (HTML or PDF). Online Help Online help patches (HTML) are available on My Oracle Support. PDF (Softcopy Guides) - Adobe Acrobat PDF versions of all Oracle Applicationsguides are available on My Oracle Support.. Oracle eBusiness Suite Electronic Technical Reference Manuals - Each ElectronicTechnical Reference Manual (eTRM) contains database diagrams and a detaileddescription of database tables, forms, reports, and programs for a specific OracleApplications product. This information helps you convert data from your existingapplications and integrate Oracle Applications data with non-Oracle applications,and write custom reports for Oracle Applications products. Oracle eTRM isavailable on My Oracle Support.Related DocumentationOracle E-Business Suite Users GuideMultiple Organizations in Oracle ApplicationsOracle Advanced Pricing Users GuideOracle Bills of Material Users GuideOracle Business Intelligence System Implementation GuideOracle Business Intelligence User Guide Online HelpOracle Cost Management Users GuideOracle General Ledger User GuideOracle HRMS Documentation Set: This documentation set includes the followingvolumes: Oracle HRMS Compensation and Benefits Management Guide, Oracle HRMSConfiguring, Reporting, and System Administration Guide, Oracle HRMS Enterprise andWorkforce Management Guide, Oracle HRMS Implementation Guide, Oracle HRMS PayrollProcessing Management Guide, and Oracle HRMS Workforce Sourcing, Deployment, andTalent Management GuideOracle Inventory Users GuideOracle Order Management Users GuideOracle Payables Users GuideOracle Procurement Contracts Online HelpOracle Projects Documentation Set: This documentation set includes the followingvolumes: Oracle Project Billing User Guide, Oracle Project Costing User Guide, Oracle xxiii 22. Projects Fundamentals User Guide, Oracle Project Management User Guide, Oracle ProjectResource Management User Guide, Oracle Projects Implementation Guide, and Oracle ProjectsAPIs, Client Extensions, and Open Interfaces Reference.Oracle Quality Users GuideOracle Receivables Users GuideOracle E-Business Suite Flexfields GuideOracle eCommerce Gateway Users GuideOracle E-Business Suite Integrated SOA Gateway Documentation SetOracle Manufacturing APIs and Open Interfaces ManualOracle Order Management Open Interfaces, API, & Electronic Messaging GuideOracle Procurement Contracts Implementation and Administration GuideOracle Workflow Administrators GuideOracle Workflow Developers GuideIntegration RepositoryThe Oracle Integration Repository is a compilation of information about the serviceendpoints exposed by the Oracle E-Business Suite of applications. It provides acomplete catalog of Oracle E-Business Suites business service interfaces. The tool letsusers easily discover and deploy the appropriate business service interface forintegration with any system, application, or business partner.The Oracle Integration Repository is shipped as part of the E-Business Suite. As yourinstance is patched, the repository is automatically updated with content appropriatefor the precise revisions of interfaces in your environment.Do Not Use Database Tools to Modify Oracle E-Business Suite DataOracle STRONGLY RECOMMENDS that you never use SQL*Plus, Oracle DataBrowser, database triggers, or any other tool to modify Oracle E-Business Suite dataunless otherwise instructed.Oracle provides powerful tools you can use to create, store, change, retrieve, andmaintain information in an Oracle database. But if you use Oracle tools such asSQL*Plus to modify Oracle E-Business Suite data, you risk destroying the integrity ofyour data and you lose the ability to audit changes to your data.Because Oracle E-Business Suite tables are interrelated, any change you make using anOracle E-Business Suite form can update many tables at once. But when you modifyOracle E-Business Suite data using anything other than Oracle E-Business Suite, youmay change a row in one table without making corresponding changes in related tables.If your tables get out of synchronization with each other, you risk retrieving erroneousinformation and you risk unpredictable results throughout Oracle E-Business Suite.xxiv 23. When you use Oracle E-Business Suite to modify your data, Oracle E-Business Suiteautomatically checks that your changes are valid. Oracle E-Business Suite also keepstrack of who changes information. If you enter information into database tables usingdatabase tools, you may store invalid information. You also lose the ability to track whohas changed your information because SQL*Plus and other database tools do not keep arecord of changes. xxv 24. 1Setting UpOverview of Setting Up This section contains an overview of each step you need to complete to set up Oracle Purchasing. For instructions on how to complete each task, see the setup sections indicated in each step. Multiple Reporting Currencies: If you plan to use Multiple Reporting Currencies (MRC) with Oracle Purchasing, additional setup steps are required. See: Multiple Reporting Currencies in Oracle Applications. Setup Checklist : Some of the steps outlined in the setup checklist are Required, and some are Optional. Required Step With Defaults means that the setup functionality comes with pre-seeded, default values in the database; however, you should review those defaults and decide whether to change them to suit your business needs. If you want or need to change them, you should perform that setup step. You need to perform Optional steps only if you plan to use the related feature or complete certain business functions. You need not perform some of the setup steps if youve already performed a common-application setup (setting up multiple Oracle Applications products). The following table lists setup steps and a reference to their Oracle Application. After you log on to Oracle Applications, complete these steps to implement Purchasing: Step No. RequiredStepApplicationStep 1 RequiredSet Up System AdministratorCommonApplicationsSetting Up 1-1 25. Step No. Required StepApplication Step 2 Required Define Accounting Key FlexfieldsCommon Applications Step 3 Required Set Up Calendars, Currencies, and Common Ledgers Applications Step 4 Required Define Human Resources KeyCommon FlexfieldsApplications Step 5 Required Define LocationsHuman Resources Step 6 Required Define Organizations andHuman Resources Organization Relationships Step 7 Required Convert to a Multi-Org Architecture Common Applications Step 8 Required Define Inventory Key Flexfields Common Applications Step 9 Required Define Units of Measure Oracle InventoryStep 10 Optional Define Freight Carriers Oracle InventoryStep 11Required Step Define Item Attributes, Codes, andOracle Inventory with Defaults TemplatesStep 12 Required Define Categories Oracle InventoryStep 13 Optional Define Catalog Groups Oracle InventoryStep 14 Required Set Up PersonnelHuman ResourcesStep 15 Required Set Up Oracle WorkflowCommon ApplicationsStep 16 Required Decide How to Use the Account Oracle Purchasing GeneratorStep 17 Required Define Financial OptionsOracle Payables1-2 Oracle Purchasing Users Guide 26. Step No. RequiredStepApplicationStep 18OptionalDefine Subinventory Locations Oracle InventoryStep 19OptionalSet Up Encumbrance Accounting for Oracle Enterprise Purchase Orders with Shop Floor Asset Management Destination TypeStep 20OptionalDefine Cross-Reference TypesOracle PurchasingStep 21OptionalDefine TaxesOracle E-Business TaxStep 22OptionalDefine Payment TermsOracle PayablesStep 23RequiredSet Up Approval Information Oracle PurchasingStep 24Required Step Define Lookups and ClassesOracle Purchasing with DefaultsStep 25OptionalDefine Standard Attachments Oracle PurchasingStep 26RequiredDefine Buyers Oracle PurchasingStep 27OptionalDefine ItemsOracle PurchasingStep 28Required Step Define Line Types Oracle Purchasing with DefaultsStep 29RequiredStart the Purchasing Database Oracle Purchasing AdministratorStep 30OptionalDefine Transaction ReasonsOracle PurchasingStep 31RequiredDefine Purchasing Options Oracle PurchasingStep 32RequiredDefine Receiving OptionsOracle PurchasingStep 33RequiredSet Up Transaction Managers and Oracle Purchasing Resubmission IntervalsStep 34RequiredDefine SuppliersOracle PayablesSetting Up 1-3 27. Step No. Required Step Application Step 35 Required Step Set Up Workflow OptionsOracle Purchasing with Defaults Step 36Required Submit Workflow-related ProcessesOracle Purchasing Step 37Optional Define Descriptive FlexfieldsCommonApplications Step 38Optional Set Up Automatic SourcingOracle Purchasing Step 39Required Open Inventory and PurchasingOracle Purchasing Accounting Periods Step 40Required Perform Additional SystemCommon Administrator SetupApplications Step 41Required Define Manufacturing System andOracle Purchasing User Profiles Setup Steps: For those steps that are affected, a Context section indicates whether you need to repeat the step for each ledger, set of tasks, inventory organization, HR organization, or other operating unit under Multiple Organizations. Step 1: Set Up System Administrator This step involves the following tasks: Create a super user to use as a logon name during setup and assign the super userthe required setup responsibilities. Typically, the required responsibilities are asfollows (Required): Purchasing System Administrator Set up printers. Although you do not have to set up all of your printers now, it maybe useful to set up one printer if you wish to print anything during setup. (Optional) See: Setting Up Oracle Applications System Administrator, Oracle Applications System Administrators Guide.1-4 Oracle Purchasing Users Guide 28. Step 2: Define Accounting Key Flexfields (Required)Define Accounting key flexfields and cross validation rules. You may not need toperform this step if you have already installed and set up Oracle General Ledger orperformed a common-applications setup. See: Designing Your Accounting Flexfield,Oracle General Ledger Implementation Guide.Important: If you are, or will be, fully installing other Oracleapplications, be sure to coordinate with those products flexfield setupbefore defining the key flexfields here, as it is not recommended tochange flexfields after you acquire any flexfields data.For instructions on how to set up key flexfields, see: Planning and Defining KeyFlexfields, Oracle Applications Flexfields Guide.Step 3: Set Up Calendars, Currencies, and Ledgers (Required)If you have defined your calendars, currencies, and ledgers while setting up a differentOracle Applications product, proceed to the next step.Context: If you are performing a Multi-Org implementation of Purchasing, you mayoptionally create more than one calendar, currency, or ledgers. See: MultipleOrganizations in Oracle Applications.This step involves the following tasks: Set up calendars: Define period types. See: Defining Period Types, Oracle General Ledger UsersGuide. Define accounting calendar. See: Defining Calendars, Oracle General LedgerUsers Guide.Note: You can define the following three optional items if youinstall certain Oracle Manufacturing applications. Define transaction calendar. See: Defining Transaction Calendars, Oracle GeneralLedger Implementation Guide. (Optional) Define workday calendar. See:Overview of Workday Calendar, Oracle Bills ofMaterial Users Guide. (Optional) Define exception templates. See: Overview of Workday Calendar, Oracle Bills ofMaterial Users Guide. (Optional) Define currencies. See: Defining Currencies, Oracle General Ledger Users Guide. Setting Up 1-5 29. Define conversion rate types. See: Defining Conversion Rate Types, Oracle General Ledger Users Guide. Define your accounting information. You must define at least one primary ledger for your organization. See: Defining Ledgers, Oracle General Ledger Implementation Guide. Assign your ledger to the current responsibility. See: Assigning the Ledger Accounts, Oracle General Ledger Implementation Guide. Define currency rates: Define daily rates. See: Entering Daily Rates, Oracle General Ledger Users Guide. Define period rates. See: Entering Period Rates, Oracle General Ledger Users Guide. Define historical rates. See: Entering Historical Rates, Oracle General Ledger Users Guide. Set up accounting code combinations. You do not need to perform this task if you allow dynamic entry of code combinations for the chart of accounts corresponding to your Purchasing installation. See: Oracle General Ledger Users Guide Open and close accounting periods. See:Opening and Closing Accounting Periods, Oracle General Ledger Users Guide. Step 4: Define Human Resources Key Flexfields (Required) You may not need to set up Human Resources key flexfields if you have already installed and set up Oracle Human Resource Management Systems or performed a common-applications setup. Refer to the Oracle HRMS Implementation Guide for details. Important: If you are, or will be, fully installing other Oracle applications, be sure to coordinate with those products flexfield setup before defining the key flexfields here, as it is not recommended to change flexfields after you acquire any flexfield data. For instructions on how to set up each of the key flexfields listed below, see: Oracle E-Business Suite Flexfields Guide. Define Human Resources and Payroll key flexfields: Job flexfield Position flexfield Grade flexfield1-6 Oracle Purchasing Users Guide 30. Cost allocation flexfield People Group flexfield Personal Analysis flexfieldStep 5: Define Locations (Required)If youre also setting up other Oracle applications, you may already have definedlocations when you set up those applications.You are required to set up at least one location for now. You can set up the remaininglocations after you define inventory organizations and tax codes.You may need to revisit this step after you set up organizations, if you want to link alocation to an inventory organization.See: Defining Locations, page 1-18.Step 6: Define Organizations and Organization Relationships (Required)You may not need to perform this step if you have already installed and set up OracleInventory or performed a common-applications setup.For the following tasks relating to setting up organizations, refer to your Oracle HRMSEnterprise and Workforce Management Guide. Define business groups, if you want to define new business groups rather thanusing the default Setup Business Group .See: Setting Up Security for ApplicationsUsing Some HRMS Windows, Oracle HRMS Enterprise and Workforce ManagementGuide and Representing Employers Using Business Groups, Oracle HRMS Enterpriseand Workforce Management Guide. Assign business groups to responsibilities. Within your responsibility, make surethat the profile option HR: Business Group is set to the business group you want touse for that responsibility.Important: It is important that the HR: Business Group profile optionbe set to the business group you want to use before you defineorganizations as described below. Define legal entities organizations. Define operating-units and assign them to legal entities. Set up inventory organizations. For the following tasks relating to setting upinventory organizations, see: Oracle Inventory Users Guide. Classify the organizations as inventory organizations. Setting Up 1-7 31. Define accounting information for inventory organizations. Define inventory organization parameters. Define receiving options for the inventory organizations. For this task, see: Defining Receiving Options, page 1-42. Define human resources organizations. Define organization hierarchies. (Optional) Step 7: Convert to a Multi-Org Architecture (Required) Although optional, this setup step is recommended even if your business is composed of just one operating unit. Performing this step now gives you the flexibility to add operating units later. This step includes the following tasks: Set the profile options MO: Operating Unit and HR: User Type. Run the utility to convert to a Multi-Org architecture. It is recommended to involve your system administrator with this task. See: Multiple Organizations in Oracle Applications. If your company has implemented a shared services operating model, Multi-Org Access Control (MOAC) enables more efficient business transaction processing. You can access, process, and report on data across multiple operating units from a single responsibility without compromising data security or system performance. To take advantage of Multi-Org Access Control, perform the following tasks: Define a Multi-Org Security Profile. See: Defining a Security Profile, Oracle HRMS Implementation Guide. Set the profile option MO: Security Profile to your security profile for each application responsibility that needs to access multiple operating units. Set the profile option MO: Default Operating Unit to a default operating unit for the responsibility from the step above. Step 8: Define Inventory Key Flexfields (Required) You may not need to set up Inventory key flexfields if you have already installed and set up Oracle Inventory or performed a common-applications setup. See also: Oracle Inventory Flexfields, Oracle Inventory Users Guide. Important: If you are, or will be, fully installing other Oracle applications, be sure to coordinate with those products flexfield setup1-8 Oracle Purchasing Users Guide 32. before defining the key flexfields here, as it is not recommended tochange flexfields after you acquire any flexfield data.For instructions on how to set up each of the key flexfields listed below, see: OracleE-Business Suite Flexfields Guide.Define Inventory key flexfields: System Items flexfield. After you compile the System Items flexfields, the itemflexfield view concurrent request is started. Item Category flexfield PO Item Category flexfield. See: Item Category Flexfield Structures, Oracle InventoryUsers Guide. Item Catalog flexfield Stock Locator flexfield Account aliases flexfiel