How to Create a Requisition Based on a Blanket Purchase Agreement (BPA) and Automatically Generate Releases (Doc ID 205472.1)To Bottom

APPLIES TO:Oracle Purchasing - Version 11.5.10 to 12.1.3 [Release 11.5 to 12.1]Information in this document applies to any platform.Form: POXRQERQ.FMB - Enter Requisitions

*** Checked for relevance on 21-Apr-2011 ***

PURPOSE

Oracle Purchasing enables you to default document information from a Blanket Purchase Agreement intoyour Requisition for an item-supplier combination by using the Approved Supplier List.

The purpose of this note is to describe the set-up steps to achieve thisDETAILS

A Blanket Purchase Agreementis an agreement defining the Items or Services which are beingpurchased, and committing to the TOTAL amount which can be called off over time.

Setup steps

Step1 -> Creation of Blanket Purchase Agreement

Responsibility: Purchasing Super UserNavigation path: Purchase Orders > Purchase OrdersShortname form: POXPOEPO

Type = Blanket Purchase Agreement

field: Allow Price Override (tab: Price Reference)Please check 'Allow Price Override' to indicate that the release price can be greater than the price onthe purchase agreement line. Even if you allow a price override, the release price still cannot exceed thePrice Limit specified on the line.

If you do not allow a price override, Purchasing displays on the release the shipment price from thepurchase agreement and prevents you from updating it.

For Automatic Sourcing purposes the Blanket Purchase Agreement needs to be approved.

Step 2 -> Creation of Approved Supplier List entry

Responsibility: Purchasing Super UserNavigation path: Supply Base > Approved Supplier ListShortname form: POXSCASL

Through the creation of this Approved Supplier List Entry a tie will be created between a supplier andan item.

field: Status (tab: Key attributes)Approved- The supplier has demonstrated the ability to satisfy rigorous quality, cost, and deliveryrequirements over a sustained periodDebarred- No business is allowed with this supplier for a particular item or commodityNew- You have never placed a purchase order with the supplier.

Each Approved Supplier Status can have business rules applied to manage the characteristics of thestatus. You can prevent or allow certain business rules for each status, change the name of a status, orcreate a status of your own in the following form:

Navigation path : Supply Base > Supplier StatusesShortname form : POXSTASL

field: Global? (tab: Record Details)A global ASL entry in the Approved Supplier List window is valid for all inventory organizations in an operating unit.A local ASL entry is valid only for the organization that you were in or that you chose when creating the ASL entry.

Local entries take precedence over global ones.

Next step is to go to Attribute screen, see button: Attributes

field: Release Method:1) Automatic Release/Review: Automatically generate releases, but require a separate step for approval. The process 'Create Releases' will generate the release2) Automatic Release: Automatically generate approved releases. This choice is not available if Encumbrance is turned on. The process 'Create Releases' will generate the release3) Release Using AutoCreate: Workflow will automatically create the release The 'PO Create Documents' workflow will generate the release If you want to prevent this happening, change the workflow value for attribute 'Should workflow create releases?

For more information seeNote 145955.1

tab: Sourcing DocumentsIf profile option 'PO: Automatic Document Sourcing' is set to 'Yes', Purchasing automatically searchesfor the most current blanket purchase agreement or quotation for an item-supplier combination, anddefaults the information from this document onto a newly created requisition.

This method is useful if you do not want to maintain the most current source documents in theApproved Supplier List, particularly if you receive these documents regularly from your suppliersthrough the Purchasing Documents Open Interface.

If you set this profile option to Yes, you do not have to specify source documents in the Approved Supplier List. If two blanket agreements exist for the same Item / Supplier combination and this profileoption is set to 'Yes', the most recent document is used for sourcing.

Step 3 -> Creation of Sourcing Rule

Responsibility: Purchasing Super UserNavigation path: Supply Base > Sourcing RulesShortname form: MRPFDDSR

The sourcing rule is what enables the sourcing details to be auto-inserted on the Requisition which is going to be created later.

Step 4 -> Creation of Sourcing Rule Assignment set

Responsibility: Purchasing Super UserNavigation path: Supply Base > Assign Sourcing RulesShortname form: MRPFDSRA

After assigning Sourcing Rule to Assignment Set the profile option 'MRP: Default Sourcing AssignmentSet' must be set in order for Oracle Purchasing to recognize and find which group of Sourcing Rules to use.

Step 5 -> Creating requisition

Responsibility: Purchasing Super UserNavigation path: Requisitions > RequisitionsShortname form: POXRQERQ

After entering the item and destination details, the supplier /site and pricing should come from thesource document if there is one defined the ASL or Purchasing found the most recent documentwhen using 'PO: Automatic Document Sourcing = Yes The Source details tab will show the documentnumber and line.