iProcurement Setups [not BR100]

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WrittenbyAnilPassi
Sunday,26November2006
ThisisnotacomprehensiveBR100,butthisarticlewillgiveyouanoutlineofthestepstoimplementOracleiProcurementusingPunchouts.
I will try to cover as many steps for full cycle iProcurement implementation using Punchouts. This is due to email
requests & the comment requests that I received to write something on iProcurement implementation.
What is a punchout?
In your iProcurement homepage, your suppliers can raise requisition to buy items like stationary. By punchout, we
integrate iProcurement with Suppliers website. From a users perspective below steps take place:-
1. Buyer logs into iProcurement Homepage
2. Buyer then sees various suppliers for which punchouts are enabled [depending on their security via realm & secured
attributes]
3. Buyer clicks on a stationary supplier and browser displays suppliers website.
4.Buyerselectstheitemsonsupplierwebsiteandaddsthemtohiscart.
5.BuyerchecksoutthebasketfromSuppliersiStore[website]
6. The items selected are brought in as Shopping Basket in iProcurement
7. Requisition is created in iProcurement and sent for Approval [can be auto approved].


Typical iProcurement Steps [assuming no encumbrances setup]
a. Create Requisition
b. Approve Requisition
c. Auto-create & auto-approve Purchase Orders for approved requisitions.
d. Send PO XML to Supplier [if approver is setup as trading partner for XML PO]
e. Create receipts for goods [optional depending on setup]
-----Other non iProc steps----
f. Supplier sends Invoice electronically [posts to your XML Gateway electronically]
g. Invoice is Matched, Approved & Paid
AccountGenerationforiProcurementRequisition
Decidetherulesforyouraccountgeneration.ForthisyouwillneedtocustomizePORequisitionAccountGenerator.Fordetailsofaccountgenerator
implementationvisitlinkAccountGenerationusingWorkflow.
YoumayalsovisitRebuildingGeneratedAccountiniProcurement11.5.10usingOAFramework


PO Create Documents Workflow
In iProc you create Requisitions, which then get converted to a Purchase Order using workflow PO Create
Documents.
In this workflow, you must examine & modify the default values of following attributes[sample defaults values listed
below]:-
Is Automatic Creation Allowed -- Y
Should PO be created from iProc requisition without user intervention.
Is Automatic Approval Allowed Y
Should Contract be used to auto create Doc Y
Shouldnon-catalogrequestbeautosourcedfromcontractY
IsContractRequiredonRequisitionLineN
Therecouldbeotherattributesofyourinterest,butmyimplementationinvolvedusageofcontractstocreatePurchaseOrders.Wehaveablanketcontract
againsteachiProcsupplier.Thevaluesaboveforthoseattributesaremerelyindicativeofonescenario.

PORequisitionApprovalWorkflow
SimilarlyforworkflowPORequisitionApproval,assignadefaultvalueforattribute
SendPOAuto-creationtoBackgroundN

Thismeans,assoonasaRequisitionisapproved,thecreationofPurchaseOrderiskickedoff[ratherthanwaitforworkflowbackgroundprocess]

ChargeAccountFlexfieldDisplay-Priorto11.5.10
Ifyouarenoton11.5.10,thenyouwouldbeusingAKDeveloper.
Priorto11.5.10,YouwillmodifybelowAKregionstoenableregionitemsPOR_CHARGE_ACCT_SEG1...X[dependinguponthenumberofsegmentsin
youraccountingflexfield.]
POR_BILLING_CHARGE_ACCOUNT_R
POR_BILLING_MULT_CHARGE_AC_R
You will also set the profile options to relate to those regions for Accounting KFF
POR: Edit Account Regions: POR_BILLING_CHARGE_ACCOUNT_R
POR: Multiple Account Regions: POR_BILLING_MULT_CHARGE_AC_R


Charge Account Flexfield Display-On or after 11.5.10
You can use personalization to decide which segments are visible in Accounting Flexfield in iProc. Hence you no longer
have to touch the AK Developer



Indicative Profile options for iProcurement [Assuming punchout implemented & no local hosting of catalogs]
Profile Site Note
Indicate Attachments Yes
Show attachment
icon
INV: Dynamic Precision
Option -9999990
PO: Terms and Conditions
File Name No need for Punchouts
MO: Operating Unit Your operating Unit
ICX: Days Needed By 4 --Change as you desire
ICX: Override Location
Flag Yes
ICX: Override Requestor By All
ICX: Allow Funds
Override No
POR: Amount Based
Services Line Type Services
POR: Approved Pricing
Only No
POR : CA Certificate File
Name In ApacheTop/conf/ssl.crt/ca-bundle.crt
Used for https
punchout
POR: Emergency
Requisitions Restrict To
Templates No
POR: Goods Line Type Goods
POR: Override Supplier P-
card No
POR: Parallel Routing
Allowed No
POR : Proxy Server Name Leave this blank
POR : Proxy Server Port Leave this blank
POR: Rate Based Services
Line Type Service Quantity
POR: Sort By Relevance No
POR: System Approvers
Are Mandatory Yes
POR: Use Sequence for
Requisition Numbering No
POR: Catalog Bulk Load
Directory
Ignore for
punchout
POR: Catalog Bulk Load
Host Default
Ignore for
punchout
POR: Default Currency
Conversion Rate Type Corporate
Change as you
wish
POR: Edit Accounts
Regions POR_BILLING_CHARGE_ACCOUNT_R
POR: Enable Requisition
Line Customisation Yes
POR: Extract BPA/Quote
Images Yes
POR: Help Path DBA
For help
customisations
POR: Hosted Images
Directory
Ignore for
punchout
POR: Items Display Num
POR: Load Auto Category No
POR: Multiple Accounts
Region POR_BILLING_MULT_CHARGE_AC_R Prior to 11.5.10
POR: One Time Location
POR: Purge Commit Size 2500
POR:Purge Jobs Older
Than (days) 30
POR: ROWS DISPLAY
NUM
POR: Result Set Size 10
POR: SSP Version 5
POR: SSP4 Installed Yes
POR: Select Internal
Requisition for Confirm
Receipt No
POR: Select Inventory
Replenishment Lines for
Confirm Receipt No
POR:Allow Manual
Selection of Source Yes
POR:Display Search Box
and Browse Categories No
POR: Load Auto Attrib No
POR: Load Auto Root No
ECE: Output File Path $XXICX_TOP/out
ECX: Log File Path /usr/tmp
ECX: OAG_LOGICALID www.anilpassi.com
Your company
domain
ECX: Server Time Zone GMT
ECX: System
Administrator Email
Address anilpassi@gmail.com
ECX: XSLT File Path /usr/tmp
PO: Workflow Processing
Mode Online
RCV: Processing Mode On-line
PO: In File Path No need for Punchouts

DefineApprovalGroups
DefineApprovalGroups[InPurchasingsuperUser]
Forexample,assumingthebelowapprovalgroupsisassignedtoBuyernamedAnilPassi,thisapprovalgroupmeansthatAnilPassicanworkon
documentsupto$5000,withinallaccountingrangeofCompanyandCostCentre[because00toZZcoverseverything].
Similarlyyoumayalsoexcludearange.Inthisimplementationexample,IamassumingoneApprovalGroupperperson.Youcoul dhaveonetomany
relationtoo.

OnceyouhavedefinedApprovalGroups,youcanuseApprovalAssignmentsscreentoassignapprovalrulestoPositionsorJobsdefinedinHRMS.

AssignApprovalGroup
Effectivelyinthisscreen,yougiveabilitytoyourbuyerstoApprovedifferentdocumenttypeslikeRequisitions,Blankets,Contractswithintherestrictionsas
theyweredefinedinApprovalGroups(priorstep)

DefineDocumentTypes
Thedifferentattributesareselfexplanatory.RefertoMetalinkfordetails.
TheexampleinscreenshotdisplaysDocumenttypeforPurchaseorder,butthesetupmustbeconfiguredforotherDocumentTypesbeingusedtoo.

DefineLineTypes
Youcandefinethedefaultinformationforalinetype.Linetypescanidentifytransactionsinvolvinggoods,services,outsi deprocessing,oranylinetypeyou
define.Theyallowyoutodistinguishbetweenquantity-basedandamount-basedtransactions.

Note:WhenyouhavesettheLineTypesupyoucangobackandcompletetheseProfilesOptions,asinscreenshotbelow:

DefineFinancialOptions
Inthisscreen,someofthefieldsareusedfordefaultingandsomeotherfieldsfordefiningthebehaviourofiProcurement/Purchasing.Thesetuphereis
doneperOperatingUnit.HerewithinAccountingTab,youspecifyaccountslikeLiability,Prepayment,Discountaccounts.
AlsoSpecifythefollowinghere
-Whethersuppliernumberingismanualorautomatic.
-Defaultpaymenttermsfor[say1month],anddefaultpaymenttypelikeElectronic.
-SpecifyFOB,Defaultinventorylocationandshiptoandbillto,freightetc
-Encumbrance:-specifywhetheryouuseencumbranceandthetype
-Defaulttaxcode
-VATregistrationnumberofOperatingunit
Define Purchasing Options
Again, this screen is defined per Operating unit, and it drives defaults & various controls in Purchasing & iProcurement.
Specify various controls like Min release amount , Price Break Type, Price Type(say fixed).
Define Accrual rules and Expense AP accrual account.
Define price tolerance rules, tax defaults & document type numbering.


Define Receiving Options
Various receipts related setup per Operating Unit, like Tolerance, Substitute Receipt Allowed.


Define transaction reasons
Your client specific setup, refer Metalink. Primarily this is an inventory function.


Define locations
The locations/Office Address where your suppliers will deliver goods and also send invoices.


Define Employees
Use this screen in PO if you do not have full HRMS Suite installed, in which case you would be using shared HR
installed [cutdown version of HRMS to support Purchasing].


Define Buyers
Define the people that can use Application to create and approve documents.


Category Search Display
Not needed for punchout implementations.

XMLGatewayresponsibility:DefineHubs
UsethisformtodefinethehubsviawhichXMLdocumentswillbesent&received.IfyouareusingExchangeforpunchingout,thenyoursetupwilllooklike
below

XMLGatewayResponsibility:DefineTransactions
Hereyouindicate,thetypeofDocumentsyouwishtoexchangewithyoursuppliersusingXML

XMLGatewayResponsibility:DefineTradingPartner
InthisscreenyouwillcreatearecordforeachSupplierwithwhomyouwishtoexchangeXMLDocumentselectronically.
Forexample,ifyouwishtosendXMLPurchaseOrderstoGo4GoldManagementLtd,thenyouwillcreateanentrysimilartobelow.Theconnectioncan
eitherbedirectorviaexchangeserver.

YouwillalsocapturetradingpartysDUNSnumbersinthisscreen.
Duringtheimplementationsyouusuallyusetestexchange.oracle.com.
TheDUNSnumberforthesupplieralsoneedstobeenteredintheEDILocationfieldagainstsuppliersiteinVendorDefinitionScreen.

TheDUNSnumberforyourimplementationclientneedstobeenteredintheEDILocationfieldonOtherDetailssectionofLocationformforClient
location[letssayyourclientforwhichiProcisbeingimplementedisXXMachineInc].
ProcessPO007isanOAGstandardthatdictatesthestructureofXMLdocumentwhichyoursupplierwillreceive.
Forthosethatdonotknow,PO007isnothingbutanApprovedPurchaseOrdersenttothesupplier.ItsformatisXML.
Toseeitsstructure,onyourmiddletier,reviewthedtdfileaslistedbelow.$PO_TOP/xml/oag71/003_process_po_007.dtd

OracleAppsusesXMLGatewaytogeneratethePO-007file.
HowisthisPO007filegenerated?
FTPthexgmfiletoyouPCfrom$PO_TOP/patch/115/xml/US/process_po_007.xgm
Open that file in XML Gateway Message designer
You will notice that message designer reads information from views like ITG_PO_HEADER_ARCH_V [Prior to
11.5.10 it was PO_ECX_HEADER_ARCH_V]
iProcurement uses the XML Gateway engine in conjunction with PO-007 message definition to generate PO007 XML
document.
ConfigureyourExchangesetup
Giventhatinthissetup,wewilluseOraclesexchangeservertosendPODocumentstosupplier,henceweneedtoenablethisDocumentType[PO007]in
exchange[forthecompanyimplementingiProc]

Logontoexchange.oracle.comorthetestexchange
NavigatetoApplicationSetuptab/TransactionDelivery
SelectthedocumenttypePROCESS_PO_007andedit
SetthecommunicationmethodandclickApply

YourSupplierwillhavetoregisteronOracleExchangeServertoo.
Tobeginwith,duringimplementation,eachsuppliermustregisterthemselvesonhttp://testexchange.oracle.com
Yoursupplierdoesthebelow:-
ClicksonRegistrationontestexchange,andselectstheoptiontoregisterasanaffiliateofyourclient.
SayyourclientisXXMachineInc,henceyoursupplierwillsearch&selectXXMachineInc.Supplierwillbepromptedtoenterfurtherdetails.
Followingthis,yourclientwillhavetoapprovetherequestforSuppliersregistration.
SupplierEnablesPROCESS_PO_007forthemselvesontheExchange
ThesequenceofflowforPO007inthiscaseis
XXMachineInc-->PO007-->Exchangeserver-->Supplier

HenceSupplierneedstoenablePO007forthemselvesontheexchangeserver
ForthisyourSupplierdoesthebelowsteps:-
Logintothetestexchange(i.e.exchange.oracle.comaftertestingduringgoLive).
ClicksonTransactionDeliveryunderCompanyAdministration
SelectsSalesOrderOutbound(PROCESS_PO_007)[goingoutfromExchange,becomingsalesorderinSuppliersSystem]
UndertransactiontypetheyselectdeliverymethodHTTPSetc
TheyspecifytheirURLonserverwhichwhereexchangewillpostthePO007XMLdoc....https://inboundpo...
Theyalsoneedtospecifyotherconnectiondetailstotheirserverlikeportnumber,useridpasswordetc.
ExchangeserverwillusethosecredentialstoconnectandposttheXMLPODocument[PO007]
Note:OracleExchangesupportsvariousprotocolslikehttp,https,smtp.Thesupplierselectsaprotocolbasedontheprotocolstheirserversupports.

SupplierEnablesthemselvesforPunchOutontheExchangeServer
OraclesupportsbothcXMLadXMLpunchouts.Hencethesuppliermustsupportoneofthesetwooptions.
Supplierdoesthefollowingstepstoenablepunchouts:-
LogsintoTestExchangeServerortheExchangeServer
Clicksonsetuppunchout
EnterstheirpunchoutURL,useridpasswordfortheiriStore.
SelectXMLorcXMLandthenclicksonAPPLY.
SuppliercanthentestwhethertheirpunchoutsetupworksbypunchingouttotheiriStorefromtestexchange/exchange.

XXMachineIncreviewssuppliersPunchout
ClientXXMachineInclogsintotestexchangeorexchangeserver,andnavigatestoControlPunchoutAccessandacceptsSuppliersPunchoutdefinition.

XXMachineIncmakesOracleEBSawareofthePunchoutsetup
Itispossiblethatwithsomesuppliers,youwouldliketoPunchouttotheiriStoresviaexchange,andfortheothersuppliersyoumayliketopunchoutdirectly
totheiriStore.
Iamdetailingboththescenariosbelow.

Scenario1UsetheSupplierpunchoutdefinitionfromExchange
NavigatetoInternetiProcurementCatalogAdministrator.

Asinpictureabove,bydownloading[clickondownload],youwillbringintoOracle,allthePunchoutSuppliersthatareenabl edforyourbusinessin
exchange.

Scenario2CreateSupplierpunchoutdefinitiondirectlyinOracleAppseCatalogMgr

IfyouwerenottobeusingExchange,thenyouwillhavetocreatethePunchoutdefinitionfromscratchinOracleAppsitself.
Forthis,clickonManageContentinresponsibilityInternetiProcurementCatalogAdministrator
Clickoncreatecatalog

SelectPunchoutcatalogandclickoncontinue

Asinpictureabove,weselectSupplierandDirectPunchout.
GiventhatyouarecreatingPunchoutdefinitionofthesupplierfromscratchstraightinOracleApps,youthenneedtoenterinformationinbelowfieldslike
PunchoutURL,EncodingMethod,passwordetc.

NOTE:Asyoumayhavenoticed,effectivelywearetryingtocreateapunchoutdefinitioninOracleAppseitherbydownloadingtheSupplierspunchout
definitionfromexchangeorbydirectlycreatingthePunchoutdefinitioninOracleApps.


Display the punchout site on iProcurement Homepage
This will be the last step. You need to define a store that is attached to the punchout catalog definition.

For this Click on create store in responsibility Internet iProcurement Catalog Administrator

Thisfinishesthepunch-outsetupwithyourSupplier.
Furthernotes:-
1.YoursupplierspunchoutbasketmaycontainitemswithUOMsthatarenotdefinedinOracleAppsinventorymodule.Inthiscase,youmustnavigateto
responsibilityeCommerceGatewayanddefinethosemappingsusingmenuCodeConversionValues
2.AspertheOAGformat,theitemcategoryusedinpunchoutbasketsis8digitUNSPSCcode.EffectivelyUNSPSCcodeisaglobalcodeforitem
categories.HoweverinOracleEBS,weimplementItemCategoriesusingKeyFlexFieldforItemCategories.Fora3segmentItemcategoryflexfieldin
inventory,youritemcategorymaylooklikeAA.BB.CC.ThisvalueofAA.BB.CCmustbemappedwiththeUNSPSCcodesthatyoursupplierswillbe
sendingfortheiritemcategories.ThisdefinitionismappedinthesamescreenundereCommerceGateway.
Comments (30)
Subscribetothiscomment'sfeed

...
writtenbyJanel,January08,2007
ExtremelybetterthantheOracledocumentation!

...
writtenbyRamesh,India,January09,2007
HiAnil,
Thisisexcellentdocumnet...Hatofftoyouforyourefforts.

Thx,
Ramesh

...
writtenbySiva,February23,2007
HiAnil,
thedocumentisverygoodanduseful.

...
writtenbyAnilPassi,February24,2007
ThanksSiva!

...
writtenbyAnilPassi,February27,2007
HiSantosh

Thanksforyourkindwords.

Notsurewhereyouarebased?Ioccassionallymeetupwithmyex-colleaguesthatareOracleConsultantsworkingondifferentprojects.Ifyouarebased
aroundLondon,willgiveyouashout.

Cheers,
anil