Videos

Overview of Automatic Sourcing

Oracle Purchasing allows users to automatically source items from suppliers based on the sourcing rules and purchase agreements. The business needs of sourcing are :

  • Automatically default supplier and pricing information onto requisition lines
  • Source the item from negotiated purchase agreements
You can easily assign any item with an item number to a specific purchase agreement or quotation. Purchasing automatically assigns the name of the supplier for the purchase agreement and quotation to any requisition for this item.

To achieve automatic sourcing, use the Sourcing Rule and Sourcing Rule/Bill of Distribution Assignments windows to create sourcing rules. Optionally use the Approved Supplier List and Supplier–Item Attributes windows to specify source document information for a particular item, supplier, and site.

PROCESSING OVERVIEW
Sourcing rule describes which supplier and supplier site while approved supplier list describes pricing details from document and line details of that supplier and supplier site combination.

Sourcing rule is mandatory which identifies the supplier and supplier site for the sourcing to happen. Sourcing rule and approved supplier list can be local and global. Once the sourcing rule is identified by sourcing functionality next is to find the source document for that supplier and supplier site combination.
Following flowchart explains you how the sourcing functionality works in defaulting the source document.

It first checks for the Profile option "PO: Automatic Document Sourcing".

Consider if the value is set to ‘Yes’. This enables Purchasing to default the most recent source documents automatically. If more than one source document is entered, Purchasing uses a blanket purchase agreement over contract and quotation, even if they were created more recently. If there are only blanket purchase agreements or only quotations, Purchasing uses the one that was created most recently.

If the Profile PO: Automatic Document Sourcing is set to ‘No’ then it checks for the ASL setup.
Global ASL entries are valid for all inventory organizations. Local ASL entries are specific to a single inventory organization.
If two ASL entries exist for the same item or commodity, one Global entry that applies to all organizations and one local entry that applies only to the local inventory organization, the local entry takes precedence. Also if ASL entries exist for the item and category (for which the same item is assigned), item ASL takes precedence over commodity ASL.

Below is the matrix, which shows the resulting document, created from the requisitions when it has the following source document.
  • Source Document              Resulting Document
  • Quotation                           Standard purchase order
  • Contract purchase order        Standard purchase order
  • Local BPA                            Blanket release
  • Global BPA                           Standard purchase order
  •  
One can also accomplish an automatic creation of Sourcing Rules, Sourcing Rule Assignments and Approved Supplier List entries during Blanket Agreement approval Submission. The system automatically creates the relevant entries, once the Blanket Agreement is approved. 

Profile Options
  1. MRP: Default Assignment Set => Define with desired Assignment Set
  2. PO: Automatic Document Sourcing => Yes
  3. PO: Allow Auto-generate Sourcing Rules => CREATE AND UPDATE
  4. PO: Allow Autocreation of Oracle Sourcing Documents => Yes

Oracle Purchasing allows

Oracle Purchasing allows users to automatically source items from suppliers based on the sourcing rules and purchase agreements

What is the meaning of that????
can some one explain in a simple language

With Sourcing rule and

With Sourcing rule and Assingment set you can automate the process of sourcing or in more simple words you can make the system to find out which supplier to use for an item...it works like below

1. Create a blanket agreement(or global, contract or quation) with a supplier.
2. Do the correct profile setup and WF modification to let the BPA approval process automaticcaly creates sourcing rule, assigntment and ASL.
3. Create a requisition, when you enter the item the system defaults the supplier as well as the source document. You save the requisition and run the create release process. The system 'll automatically create the releases.

"2. Do the correct profile

"2. Do the correct profile setup and WF modification to let the BPA approval process automaticcaly creates sourcing rule, assigntment and ASL."

What if i have a BPA for Supplier XXX which has item 1111 on it. I expire the date of that Item as today, and add it to a BPA for supplier YYY. When i approve and check the Automatic Sourcing Setup on the approval form, should it now update to source the item, from supplier YYY from this date on, to the end of the BPA effective date for the new BPA?

Our system is currently not doing this. If we move an item from 1 Bpa to another where the supplier is different. We must go and update the sourcing rules manually to source the item from the new supplier. This can be tedious process when moving many items at a time.

Orcale Version 11i.

Shpetim

"2. Do the correct profile

"2. Do the correct profile setup and WF modification to let the BPA approval process automaticcaly creates sourcing rule, assigntment and ASL... In this statement, what exactly meant by WF modifications? What modifications that I have to do In order to get this functionality to work..

I dont think u need any WF

I dont think u need any WF customiztion if u are above 11.5.10 or R12