Fundamentals of Oracle Purchase Requisition-Part I

Fundamentals of Purchase Requisition-Part I

Functional Overview

A purchase requisition is a request sent to the purchasing department to procure goods or services. It is originated and approved by the department requiring the goods or services. Typically, it contains a description and quantity of the goods or services to be purchased, preferred make, a required delivery date, account number and the amount of money that the purchasing department is authorized to spend for the goods or services. Often, the names of suggested supply sources are also included

Purchase Requisition know as PR  opens the channel for procuring required material from outside supplier or with the organization from different function unit. Purchase Requisition or Purchase Request is a precise document generated by an internal or external organization to notify the purchasing department of items it needs to order, their quantity, and the time frame that will be given in the future. It may also contain the authorization to proceed with the purchase. It is also called Purchase Order Request.

Oracle Purchase requisition.

Oracle provides the online Purchase requisition in Purchasing Module through buyer work center which helps to provide the centralized requisition facility in oracle.

 

 Also you can create the requisition through conventional oracle form in purchasing

Oracle Purchase requisition provides the following basic facility while creating.

• Create, edit, and review requisition information online. You should also be able to enter suggested supplier information, delivery instructions, multiple accounting distributions, and notes to buyers, approvers, and receivers.
• Review the current status and action history of your requisitions. You should always know who approves requisitions and whether they are in the approval, purchasing, receiving, or delivery stage.
• Route requisitions according to your approval structure. You should also be able to set authorization limits by amount, charge account, item category, and location.
• Review and approve requisitions that need your approval. You should also be able to see the full requisition detail and review the action history before you approve a requisition.
• Print requisitions (with status Approved, Cancelled, Rejected, In Process, Pre-Approved, and Returned) for off-line review and approval. You should always be able to track the status of requisitions through the approval process.
• Import requisitions from other systems such as material or distributions requirement planning applications
• Perform online funds checking before creating requisitions. You should always know how your planned expenses compare to your budget.
• Automatically source requisitions from outstanding blanket purchase agreements, contract purchase agreements, or quotations you have made with suppliers
• Support flexible pricing rules
• Create requisitions quickly and easily for commonly purchased items
• Create internal requisitions that are sourced from your inventory by means of internal sales orders
• Provide attachments as notes on requisition headers and lines
• Assign requisition lines to buyers and review buyer assignments for requisition lines
• Forward all requisitions awaiting approval from one approver to an alternate approver. Within your security and approval constraints, you should be able to reroute requisitions from one approver to another whenever you want.
• Record suggested foreign currency information for each requisition line

Advantage of System based Purchase requisition.

You can save time, money, and paper by processing requisitions online.Some of the many problems you may incur with paper requisitions include:

• The requestor may not fill in the requisition completely or accurately.
• The requestor's handwriting may be illegible.
• Someone without proper authority can potentially approve a requisition.
• The requestor might have to mail the requisition to an approver at a different location and wait a number of days to get it back.
• The approver or buyer may lose or damage the requisition.
• The buyer may translate the information from the requisition to the purchase order incorrectly.
• You may lose significant quantity discounts if the buyer cannot locate all the requisitions that reference a particular item.

Purchasing helps you eliminate these problems with online requisition processing. When you create a requisition online, you can instantaneously send it to an approver. The approver can access your requisition from any computer and provide a note, change the requisition, and reserve funds if necessary. You also set controls to ensure that only the appropriate people can approve a particular requisition. After approval, inventory sourced lines on the requisition are handled as internal sales orders. For supplier sourced lines, the buyer can then consolidate all similar requests onto a single purchase order to negotiate the best price. Through all of these transactions, you never have to use any paper. By processing requisitions online, you significantly reduce the length of the purchasing cycle. You can also provide requisition line defaults for both supplier and internally sourced lines to speed up requisition entry and automatically source items to improve buyer efficiency. At any point, the requestor can review the requisition online to check the status of the requisition.

We will explore more in the next part of this article

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