Raising requisitions for Items

Oracle iProcurement provides us with the functionality to create requisitions. Requisitions can be manually created from the purchasing or iProcurement modules. Requisitions can be imported from external systems and also generated from other modules including Order Management, Work in Process, and Inventory.

In this recipe, we will raise a requisition with two lines:

  1. Catalog Requisition: 100 Items of PRD20001 Paper Widgets
  2. Non-Catalog Requisition: Consulting services relating to the Widgets for a fixed amount of $150

We can raise a requisition for a catalog and a non-catalog Item in an iProcurement.

Getting ready

Log in to Oracle E-Business Suite R12 with the username and password assigned to you by the system administrator. If you are working on the Vision demonstration database, you can use OPERATIONS/WELCOME as the USERNAME/PASSWORD.

How to do it...

Let's list the steps required to create a requisition:

  1. Navigate to the iProcurement responsibility.
  2. Select the Main Store.
  3. Search for the PRD20001 Item and click on the Go button.
  4. If the Item can be sourced internally, a link will be enabled that will allow the user to select the source. It is also possible to have a blanket agreement with a supplier to supply the goods at a specific price.
  5. Enter the Quantity of 100 and click on the Add to Cart button.
  6. Let's create the requisition line for the consulting services. We will create a non-catalog request for services billed by amount.
  7. Select the Non-Catalog Request link to enter the details of fitting the Item at a fixed price.
  8. The following are the three Item types used for non-catalog requisitions:
    • Goods billed by quantity, for example, 10 widgets at 250 USD each
    • Services billed by quantity; for example, 10 hours of service at a rate of 50 USD an hour
    • Goods or services billed by amount, for example, for a fixed amount of 500 USD for services rendered
  9. In the Item Type field, select Goods or services billed by amount in the drop-down list, because our request is for a fixed amount for service.
  10. In the Item Description field, enter the description of the service. For example, Paper Widgets Consulting.
  11. Enter the Category, for example, MISC.CONSULTING.
  12. Enter the Amount, for example, 150.00.
  13. If the details of the supplier are known, the supplier details can be added to the requisition. It is also possible to have a Contract Agreement with a supplier that can be attached to the details of the Non-Catalog requisition.
  14. Click on the View Cart and Checkout button.
  15. Click on the Checkout button.
  16. In the Requisition Description field, for example, enter 100 Paper Widgets.
  17. Review the Need-by-Date, Requester, and the Deliver-To Location.
  18. Click on the Edit Lines button to review the line details.
  19. In the Delivery Tab, details of the Destination Type of Inventory and Expense with the Subinventory of FGI are displayed for the delivery of the Items.
  20. Click on the Billing Tab to view the allocation to Project details.
  21. Click on the Accounts Tab to view the Charge Account allocated to the transaction.
  22. In the Attachments tab, we can add attachments at the line level.
  23. Click on the Next button.
  24. In the Approvals section, the approval details are shown. The requisition needs to be approved by Baker, Catherine.
  25. In the Notes section, enter the Justification, for example, Widgets required including consulting service.
  26. Enter the Note To Buyer, for example, Please use Office Suppliers in New York.
  27. Click on the Next button.
  28. Review the Requisition details.
  29. Click on the Submit button.
  30. Confirmation of the Requisition is displayed. This includes the Requisition number 14337 and the submission to Baker, Catherine as the approver.
  31. Click on the Continue Shopping buttonto proceed.

How it works...

Requisitions can be created for catalog and non-catalog Items. A catalog Item can be loaded directly from an XML file, CSV file, or by punchout (a link to an external source for automatic updates to the catalogs) to the supplier's site. We can also create a catalog requisition for Expense Items, Assets, and Items held in Inventory. If an Item is not found in a catalog, a non-catalog requisition may be created.

There's more...

Now let's explore the following relevant tasks concerning the creation of requisitions:

  • The use of smart forms to create requisitions
  • Review of the account generator to create the charge account codes
  • The management of requisitions including copying, correcting, and canceling requisitions

Let's start by looking at smart forms.

Smart forms

Smart forms are templates for non-catalog requisitions that are pre-populated with values for a type of purchase. For example, smart forms for travel expenses, legal services, and so on. The requester only enters some information to complete the line entry. Additional information can also be entered into smart forms through information templates.

Let's assume that our company has a contract with Jones, Gray, and Associates, for the supply of legal services. A contract agreement No 4514 is already in place for these services. We are going to enter a requisition for legal services for 3 hours of work at $150 per hour. We also require Alan Johnson, a consultant from the United Kingdom, to supply these services. A smart form has already been created for this type of service.

  1. Navigate to the iProcurement responsibility.
  2. In the Main Store field, select the Legal Services link.
  3. Select the Legal Consulting link.
  4. Review the pre-populated values in the main area of the smart form. The Supplier Name and Site details are automatically populated and cannot be changed.
  5. Enter 3 in the Quantity field.
  6. Change the Rate per Unit to 150.
  7. Review the additional information section. This includes the Applicant Information and the Legal Consultation section.
  8. In the Name field, enter Alan Johnson.
  9. In the Country of Birth field, enter United Kingdom.
  10. In the Gender field, select Male.
  11. In the Date of Birth field, enter 02-Jan-1980.
  12. In the Phone Number field, enter +44987230081.
  13. In the Description of Issues field, enter Filing of Tax Accounts.
  14. In the Type of Consultation field, select Taxes.
  15. Click the Add to Cart button.
  16. Click on the View Cart and Checkout button.
  17. Click on the Submit button.
  18. The Confirmation page is displayed with the requisition number 14340; click on Continue Shopping to return to the main store.

Accounting codes

When requisitions are created, accounting codes are automatically generated based on the rules in the Account Generator workflow engine. The default values for Inventory and Asset Items are based on the Item and Subinventory.

The Account Generator does not use the Inventory and Asset account rules if the Item is an expense Item. The rules for generating expense Items are based on the Expense Accounts Rules, Employee Default Charge Account, and Favorite Charge Account.

Let's look at how the expense accounts are determined:

  1. Navigate to the Purchasing responsibility.
  2. Navigate to Setup | Financials | Accounting | Expense Account Rules.
  3. Click on the Create button.
  4. In the Account Rule Type field, select ITEM CATEGORY.
  5. In the Account Rule Value field, enter 645.33.
  6. In the Segment Name field, select Account.
  7. In the Segment Value field, enter 7460.
  8. Click on Apply.

Let's create a non-catalog requisition to see the default account that is used:

  1. Navigate to the iProcurement responsibility.
  2. Select the main store.
  3. Select Non-Catalog Request.
  4. In the Item Type field, select Goods or services billed by amount.
  5. In the Item Description field, enter New Widget for Office Equipment.
  6. In the Category field, enter 645.33.
  7. In the Amount field, enter 200.
  8. Click on the Add to Cart button.
  9. Click on the View Cart and Checkout button.
  10. In the Shopping Cart screen, click on the Checkout button.
  11. In the Checkout screen, click on Edit Lines.
  12. Select the Accounts tab.
  13. The Charge Account uses 01-740-7460-0000-000 for the account segment.

The Cost centre segment defaults from the Purchase Order Information in the employee record.

We will now navigate to the employee record and change the expense account:

  1. Select the Human Resources responsibility.
  2. Navigate to People | Enter and Maintain.
  3. In the find People form, search for the details of Pat Stock.
  4. Select the Assignment button.
  5. Select the Purchase Order Information tab.
  6. The Default Expense Account is 01-740-7699-0000-000.
  7. The account generator uses the department segment 740 to determine the value of the cost center segment.
  8. Change the value to 01-730-7699-0000-000.
  9. Click on the Update button.
  10. Save the record.

Let's create a non-catalog requisition to see the default account:

  1. Navigate to the iProcurement responsibility.
  2. Select the main store.
  3. Select Non-Catalog Request.
  4. In the Item Type field, select Goods or services billed by amount.
  5. In the Description field, enter New Widget for Finance.
  6. In the Category field, enter 645.33.
  7. In the amount field, enter 200.
  8. Click on the Add to Cart button.
  9. Click on the View Cart and Checkout button.
  10. In the Shopping Cart screen, click on the Checkout button.
  11. In the Checkout screen, click on Edit Lines.
  12. Select the Accounts tab.
  13. The Charge Account uses 730 for the department segment.

If no rules are specified for any of the segments, the account generator uses the primary account in the user preferences to generate the default account:

  1. Navigate to the iProcurement responsibility.
  2. Select the Preferences link on the homepage.
  3. Select iProcurement Preferences in the side navigation.
  4. Review the 01-510-7699-0000-000 account in the Favorite Charge Accounts region.

Let's now look at how to manage requisitions.

Copying a requisition

We need to create another requisition for Legal Consulting. Let's copy an existing requisition number, 14340:

  1. Search for requisition number 14340.
  2. Navigate to the iProcurement responsibility.
  3. In the Requisitions tab, select the Search button.
  4. In the Requisitions Search form, enter 14340 in the Requisition Number field.
  5. Click on the Go button.
  6. Copy the requisition to the Shopping Cart.
  7. Select the requisition and click on the Copy To Cart button.
  8. The requisition is added to the shopping cart.
  9. Click on the Checkout button in the Shopping Cart form.
  10. Click on the Submit button.
  11. The new Reuisition 14343 is created.

Correcting a requisition

We need to correct the requisition number 14343 for Legal Consulting. Let's amend the rate to $1000 per hour:

  1. Navigate to the iProcurement responsibility.
  2. In the My Requisitions region, click on the Change icon.
  3. In the Change Requisition Details form, change the Price to 1000 and enter a Reason, for example, Adjusted Rate.
  4. Click on the Next button.
  5. Click on Next in the Mange Approvals screen.
  6. Review the Change Order.
  7. Click on the Submit button.
  8. The requisition is amended.

Canceling a requisition

We need to cancel the requisition number 14343 for legal consulting. A requisition can be canceled before it is placed on a purchase order. If a requisition is placed on a purchase order, we can only cancel the requisition lines.

  1. Navigate to the iProcurement responsibility.
  2. In the My Requisitions region, click on the 14343 Requisition link.
  3. Click on the Cancel Requisition button.
  4. In the Cancel Requisition form, click the Select checkbox, and enter a Reason, for example, Service not required.
  5. Click on the Continue button.
  6. Click on the Submit button.
  7. The requisition is canceled with the total amount of USD 0.00 , as shown on the requisition.

See also

Creating Items recipe in this chapter

Creating Purchase Orders recipe in Chapter 2, Purchasing Items in Procurement

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