Automatic Sourcing (Oracle Purchasing Help)


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Automatic Sourcing

Purchasing lets you automatically source on-line requisitions with blanket purchase orders or quotations you create. You can easily assign any item with an item number to a specific blanket purchase agreement or catalog quotation you created. (You can choose only quotations with a quotation class of Catalog.) Purchasing automatically assigns the name of the supplier for the blanket purchase order and quotation to any requisition for this item.

You use the Sourcing Rule and Sourcing Rule / Bill of Distribution Assignments windows to create sourcing rules. You use the Approved Supplier List and Supplier-Item Attributes windows to specify source document information for a particular item-supplier combination.

You can define allocation percentages when creating sourcing rules in the Sourcing Rule window. Master Scheduling/MRP uses these allocation percentages when creating planned orders, which Purchasing imports as requisitions through Requisition Import. In a group of requisitions imported from Master Scheduling/MRP, those requisitions show the percentage allocation you define. In other words, at the end of a planning period, orders--as a group--to those suppliers approximately equal the percentage split you defined. However, when you create a requisition in Purchasing, Purchasing sources to the supplier with the highest allocated percentage. The Approved Supplier List (ASL) entry for that supplier is then referenced in order to pick up source document information (from a blanket purchase agreement or catalog quotation), if source documents exist. You can also rank the suppliers in the Sourcing Rule window, so that if a percentage allocation is the same for some suppliers, Purchasing sources to the one with the highest rank.

In the Approved Supplier List and Sourcing Rule windows, you can also source at an item or commodity level. That is, you can provide sourcing information for an item at the item level, or for a category of items at the commodity level. You can also perform global or local sourcing. A sourcing rule assigned at the global level in the Sourcing Rule / Bill of Distribution Assignments window is valid for all operating units. A global ASL entry in the Approved Supplier List window is valid for all inventory organizations in an operating unit. A local sourcing rule or ASL entry is valid only for the operating unit you're in or the organization you chose.

If you define a blanket purchase agreement or quotation as the source document for your item, Purchasing provides the following sourcing information for your requisition line: Buyer, Supplier, Site, Contact, Phone, Supplier Item Number, Document Type (Blanket or Quotation) Source Document, Source Line Number, and RFQ Required (Yes or No). You can later review the sourcing information in the AutoCreate Documents window before placing the requisition line onto a purchase order.

Purchasing defaults sourcing information from the blanket purchase agreement or quotation except under the following conditions:

The blanket purchase agreement is frozen or cancelled, or the purchase agreement line is cancelled.

The quotation is not active.

You have copied sourcing information back to the requisition from the Supplier Item Catalog.

Note: You can also receive blanket purchase agreements and quotations electronically from your suppliers through the Purchasing Documents Open Interface. See: Receiving Price/Sales Catalog Information Electronically.

Creating Sourcing Rules and ASL Entries

If you want source document information from a blanket purchase agreement or catalog quotation to default in your requisition line for an item-supplier combination, then you need to create ASL entries in the Approved Supplier List window and create sourcing rules. If you want just a supplier and optionally a supplier site to default in your requisition line, then it is enough just to create sourcing rules for the item or commodity.

To create sourcing rules:

Define items. See: Defining Items.

Create suppliers and supplier sites in the Suppliers window. See: About Suppliers.

Defining Sourcing Rules

Note: Some of the fields in the Sourcing Rule window may already be completed for you if your supplier sends you catalog information electronically.

Assigning Sourcing Rules and Bills of Distribution

Attention: When you enter an Assignment Set name in the Sourcing Rule/Bill of Distribution Assignments window, make sure you use the same name that appears (or that you've provided) in the profile option MRP: Default Sourcing Assignment Set.

To create ASL entries:

See: Defining the Supplier and Commodity/Item Combination. See: Defining the Supplier/Item Attributes.

Automatic Sourcing

Creating Sourcing Rules and ASL Entries

To create sourcing rules:

To create ASL entries:

See Also