Purchase Order Setup (PO)

1-      Create Location of Organization

Purchasing Super User Responsibility or from HRMS also possible.

Purchasing > Setup > Organizations > Locations

2-      Create Operating Unit

Purchasing > Setup > Organizations > Organizations

Click on others and re click on the mandatory field of ‘Operating Unit Information’  as above.

3-      Create Inventory Organization

Purchasing > Setup > Organizations > Organizations

Click on others and enter accounting information as shown above and also inventory information and receiving also as below:

Inventory Information can also be entered from inventory module and its screen shots are as below:

** Take care in selecting Item Master Organization. It should by your master Inventory Org not your current inv. Org.

Receiving Options in the inventory org:

4-      Enter the Financial Options of the Operating Unit.

Setup > Organizations > Financial Options.

Use Approval Hierarchies is unchecked it means no positional hierarchies for approval purpose is being in operation.

5-      Enter Purchasing Options of Operating Unit.

Setup > Organizations > Purchasing Options

* If document numbeing is not enabled then run concurrent request 'Replicate Seed Data' for that new Operating Unit.

6-      Run concurrent program ‘Replicate Seed Data’ from system administrator responsibility to populate new Operating Unit in EBS.

7-      Approval Groups:  Create Approval Group for the Operating Unit
Setup > Approvals > Approval Groups

8-      Assign Approval Group: Assign tasks to the Job in Operating Unit
Setup > Approvals > Approval Assignments

9-      Add Buyer

Setup > Persoonel > Buyer

10-   Assign inventory items from master items to current newly created inventory organization (From inventory responsibility)

Inventory > Items > Master Items.

11-A- Create Hierarchy for approving documents (Purchase Order, Purchase Requisitions)
Human Resources Responsibility > Work Structures > Position > Hierarchy

11-B-   Run the Concurrent request ‘Fill Employee Hierarchy’ from purchasing responsibility. For the populating newly created Hierarchy.

12-   Hierarchy must also be associated on Document Types page

Setup > Purchasing > Document Types  After that first choose the organization and then click on Purchase order Standard.

For Purchase Requisitions:

Setup > Purchasing > Document Types  After that first choose the organization and then click on Requisition Purchase.

* Now enter the Purchase requisitions & Purchase orders and do receivings in PO or Inventory Module.

13- Go to Inventory Module and then assign item to your newly created Inventory Organization.

14- Assign Supplier to your Operating Unit in Payables Module.

      Go to supplier entry, Update option, then Address Book, then Manage Site

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In Oracle Purchasing, we have three methods to route documents for approval

• Approval Hierarchy Method: This method uses the Position hierarchy for approvals
• Employee Supervisor Hierarchy Method: This method uses the Employee-Supervisor relationship
• AME (Approvals Management Engine)