Create a Purchase Order- Committed Cost Flow
Purchase Order needs to be created in Purchasing in
order to complete the Committed Cost Flow.
N èPurchase Ordersè
Purchase Orders
1.
Operating Unit: This is a new feature in R12. It gets defaulted from Profile Options.
It’s a new feature in R12. You can define
your Implementation options based on your Operating Units. It
means that from a single responsibility you can Define/Query Multiple Operating
Unit based Implementation Options Set Ups. The same feature was not available
in previous releases.
2. Type: Type
Should always be Standard Purchase Orders
3. Supplier:
Select the appropriate active Supplier.
4. Description:
Give the appropriate Description
Line Level Details
1. Type: Select the Type as
Goods if you are entering a PO for particular Item.
2.
Category: Select the Appropriate Item Category and Commodity.
3.
Description: Enter the Appropriate Description.
4.
UOM: Enter the Appropriate Unit of Measurement like EA, Each.
5.
Quantity: Enter the Appropriate Quantity of the Goods.
6.
Price: Enter the Appropriate Quantity of the Goods.
7.
Promised Date: It is mandatory to enter either Promised Date or Need by
Date while creating a Purchase Order.
8.
SAVE YOUR WORK.
Now, click on Shipments Tab
Ensure at the More Tab, that the Match Approval Level is always set to 3 WAY.
Now, click on Distributions Tab
Destination Tab,
1. Type: Type should always be
expense while entering a Purchase Order.
2.
Quantity: The same quantity entered at the Line Level should get copied
over to the Destination Tab.
3.
PO Charge Account: Enter the appropriate Charge Account’s Department and
Account Details
4.
SAVE YOUR WORK
Projects Tab,
1. Project Number: Enter
the Project Number of the Project that you had initially created for Costing
Purposes.
2. Task: Enter the
Appropriate Task Number.
3. Expenditure Type: Select
the Appropriate Expenditure Type from the List of Values.
4. Expenditure
Organization: Select the Appropriate Expenditure Owning Organization from the
List of Values.
Note: Expenditure
Organization and Project Owning Organization can be different.
5. Date: Select the
Appropriate Date.
6. Quantity: The Amount of
Quantity you had entered at the Line Level should get copied over to the Project
Tab.
7. SAVE YOUR WORK.
Now, Approve the above Purchase Order
Now, Go to Projects Responsibility
Run, the report PRC: Update Project Summary
Accounts with Project Number as the Parameter and submit the above
Request.
One the Above report is completed; we will need to
check the Project Status Inquiry.
The Total Cost in the PO will get transferred to
Projects as a Committed Cost and will appear in the Commit Amount Column.
The Expenditure Entry for the above PO can also be
checked in Expenditure Inquiry Screen.
Create a Purchase Order- Accrued Cost Flow
Purchase Order needs to be created in Purchasing in
order to complete the Accrued Cost Flow.
N è Purchase OrdersèPurchase
Orders
1 .Operating Unit: This is a new feature in
R12. It gets defaulted from Profile Options.
It’s a new feature in R12. You can define
your Implementation options based on your Operating Units. It
means that from a single responsibility you can Define/Query Multiple Operating
Unit based Implementation Options Set Ups. The same feature was not available
in previous releases.
2. Type:
Type should always be Standard Purchase
Orders
3. Supplier:
Select the appropriate active Supplier
4. Description:
Give the appropriate Description
Line Level Details
1. Type: Select the Type as
Goods if you are entering a PO for particular Item.
2.
Category: Select the Appropriate Item Category and Commodity.
3.
Description: Enter the Appropriate Description.
4.
UOM: Enter the Appropriate Unit of Measurement like EA, Each.
5.
Quantity: Enter the Appropriate Quantity of the Goods.
6.
Price: Enter the Appropriate Quantity of the Goods.
7.
Promised Date: It is mandatory to enter either Promised Date or Need by
Date while creating a Purchase Order.
8.
SAVE YOUR WORK.
Now, click on Shipments Tab
Ensure at the More Tab, that the Match Approval Level is always set to 3 WAY.
Now, click on Distributions Tab
Destination Tab,
1. Type: Type should always
be expense while entering a Purchase Order.
2. Quantity: The same
quantity entered at the Line Level should get copied over to the Destination
Tab.
3. PO Charge Account: Enter
the appropriate Charge Account’s Department and Account Details
4. SAVE YOUR WORK
Projects Tab,
1. Project Number: Enter
the Project Number of the Project that you had initially created for Costing
Purposes.
2. Task: Enter the
Appropriate Task Number.
3. Expenditure Type: Select
the Appropriate Expenditure Type from the List of Values.
4. Expenditure
Organization: Select the Appropriate Expenditure Owning Organization from the
List of Values.
Note: Expenditure
Organization and Project Owning Organization can be different.
5. Date: Select the
Appropriate Date.
6. Quantity: The Amount of
Quantity you had entered at the Line Level should get copied over to the
Project Tab.
7. SAVE YOUR WORK.
Now, Approve the above Purchase Order
Prior to Creating a Receipt for a Purchase Order,
some mandatory set ups needs to be done.
N èSetup è
OrganizationèPurchasing OptionsèReceipt Accounting
An HTML page will open up; you will need to look
for Receipt Accounting Option.
Now, within Receipt Accounting Option, Change the
Accrue Expense Items should be set at “AT RECIPT” and Accrue Inventory Items
should be set at “AT RECIPT”.
And also In the Shipments of your Purchase Order,
you will need to check the Accrue at Receipt checkbox must be checked mandatory
in order to enable you to enter Receipts against the Purchase Order.
Also, you will need to take a note of the Ship To
Organization Name as you will only be allowed create receipts against the PO in
that Organization only. In this case it is H1
RECEIPTS CREATION
NèReceivingèReceipts
Query the Purchase Order that you have created.
Now, the Header form check the Checkbox against the
Quantity after ensuring that it’s the same that you have entered in the
Purchase Order.
Enter a valid Location and save your work
Click on the Header Tab and make a note of the
Receipt Number 2130
Now, we will need to transfer the Receipt to
Projects
Now, in Projects, Vision Operations
Run the Report “PRC: Interface Supplier Cost”
and select the Option as “YES” for Interface Receipt Accruals” in the
Parameters and Submit the Report.
Now, in the Expenditure Inquiry, check for the
above Expenditure Item.
NèExpendituresèExpenditure InquiryèProject
Now click on Item Details Tab and select PO
Receipt, in order to review the Receipt associated with the particular
Expenditure Item.
You can also cross verify your Purchase Order
Number and Receipt Number.
Now, Go to Projects Responsibility
Run, the report PRC: Update Project Summary
Accounts with Project Number as the Parameter and submit the above Request.
One the Above report is completed; we will need to
check the Project Status Inquiry.
The Total Cost in the PO will get transferred to
Projects as a Accrued Cost and will appear in the ITD Act Cost Column.
When you further drill down to Task Status, you
will be able to check the Accrued Cost Amount.
Create a Purchase Order- Actual Cost Flow
Purchase Order needs to be created in Purchasing in
order to complete the Actual Cost Flow.
N è Purchase OrdersèPurchase
Orders
1 .Operating Unit: This is a new feature in
R12. It gets defaulted from Profile Options.
It’s a new feature in R12. You can define
your Implementation options based on your Operating Units. It
means that from a single responsibility you can Define/Query Multiple Operating
Unit based Implementation Options Set Ups. The same feature was not available
in previous releases.
2. Type:
Type should always be Standard Purchase
Orders
3. Supplier:
Select the appropriate active Supplier
4. Description:
Give the appropriate Description
Line Level Details
1. Type: Select the Type as
Goods if you are entering a PO for particular Item.
2.
Category: Select the Appropriate Item Category and Commodity.
3.
Description: Enter the Appropriate Description.
4.
UOM: Enter the Appropriate Unit of Measurement like EA, Each.
5.
Quantity: Enter the Appropriate Quantity of the Goods.
6.
Price: Enter the Appropriate Quantity of the Goods.
7.
Promised Date: It is mandatory to enter either Promised Date or Need by
Date while creating a Purchase Order.
8.
SAVE YOUR WORK.
Now, click on Shipments Tab
Ensure at the More Tab, that the Match Approval Level is always set to 3 WAY.
Now, click on Distributions Tab
Destination Tab,
1. Type: Type should always
be expense while entering a Purchase Order.
2. Quantity: The same
quantity entered at the Line Level should get copied over to the Destination
Tab.
3. PO Charge Account: Enter
the appropriate Charge Account’s Department and Account Details
4. SAVE YOUR WORK
Projects Tab,
1. Project Number: Enter
the Project Number of the Project that you had initially created for Costing
Purposes.
2. Task: Enter the
Appropriate Task Number.
3. Expenditure Type: Select
the Appropriate Expenditure Type from the List of Values.
4. Expenditure
Organization: Select the Appropriate Expenditure Owning Organization from the
List of Values.
Note: Expenditure
Organization and Project Owning Organization can be different.
5. Date: Select the
Appropriate Date.
6. Quantity: The Amount of
Quantity you had entered at the Line Level should get copied over to the
Project Tab.
7. SAVE YOUR WORK.
Now, Approve the above Purchase Order
Purchase Order Cost will become actual cost only
when you create an Invoice against the Purchase Order.
Go to Payables, Vision Operations, in order to
create an Invoice.
N è InvoicesèEntryèInvoices
To
enter a basic invoice:
1. In the Invoices window choose Standard for the invoice
Type.
2. Enter the Supplier or Supplier Number.
3. Enter the Supplier Site to which you will send payment of
the invoice. Payables will print the address for this site on the payment.
4. Enter the Invoice Date or accept the Payables default
(today's date) by choosing [TAB].
Payables may use the invoice date you enter as the Terms Date
and GL Date default for an invoice, depending on how your Payables Options and
Defaults are set up.
If your GL Date Basis Payable Option is set to Invoice
(Date), you must enter an invoice date that is in an open or future period.
5. Enter the Invoice Number from the invoice your supplier
sent you or accept the Payables default (today's date) by choosing [TAB].
Payables will not allow you to enter duplicate invoice numbers for the same
supplier.
Suggestion: You may want to use an invoice numbering convention that
minimizes the risk of separate entries of the same invoice under different
invoice numbers. For example, if you consistently enter alphanumeric invoice
numbers in upper case you would enter an invoice number only as ABC123, and not
also as abc123.
Enter the full Invoice Amount including tax, freight and
miscellaneous charges.
5.
Enter the Description of your invoice. This will appear on
your payment document and may appear in your general ledger.
Now, you will need to match this
invoice with the Purchase Order that you had created for the accumulation of
the actual cost.
Note: Purchase Order will get matched
to an Invoice only when the supplier’s data is same as that of the Purchase
Order.
You will need to click on Match Tab
and query your Purchase Order.
Input the Purchase Order Number and
Line will be 1 and Shipment will be 1 and click on Find
Now, click on the Match Checkbox and
verify the Quantity entered is same as the Invoice and then click on Match.
Now, click on Actions tab,
Validate and Create Accounting for the
above invoice. Please Note that Project and Other Details would already got
copied over from PO.
When you check the Inoice Status it says it needs
revalidation. This means that there are some holds that are preventing the
invoice to get the invoice from validation.
You will need to release the hold in order to
validate the invoice.
Please click on the Holds Tab, and click on Release
1 Tab
Select the appropriate Release Reason and click OK.
The Invoice Status will automatically get updated
to Validated. It means that this invoice is ready for transfer to Projects.
Now, the same invoice needs to be transferred to
Projects.
Run the Report, PRC: Interface Supplier Costs with
Project Number as the Parameter Costing Training Project and submit the Report.
You can check in the below Output File that the
above Invoice has been successfully been transferred from Payables to Projects.
The same can be cross checked In Expenditure
Inquiry as well
Nà Expenditures à Expenditures Inquiry à Enter Project
number
If you further Drill down to Item Details Tab you
can also track the AP Invoice associated with the above expenditure Entry.
Choose AP Invoice to drill down to the Invoice Overview form
in Oracle Payables. (This option is only enabled for expenditure items whose
expenditure type class is either Supplier Invoices or Expense Reports.)
1 comment:
Fabulous explanation sir.thank you
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