Complete Guide (Enter Requsition in Oracle Purchasing)

Entering Requisition Header

NOTE: Any navigation paths specified in this document can be performed using the Purchasing Super User responsibility, with the exception of the Subinventory field (#10), which can be performed using the Inventory Super User responsibility. Also, any and all profile options discussed in this document can be defined from the following responsibility and navigation within Oracle Applications:

Responsibility: System Administrator
Navigation: Profiles -> System

1. Field: Requisition Number
Navigation for Setup: Setup -> Organizations -> Purchasing Options, Numbering Alternate Region
Whether or not a Requisition number can be entered by a user depends on these settings. If automatic Requisition numbering is chosen, the cursor will not enter this field and the number is generated when the Requisition is saved.

2. Field: Document Type
Navigation for Setup: Setup -> Purchasing -> Document Types
The Requisition form allows for the following document types to be created and modified:
Internal Requisition - the requisition lines are usually satisfied from inventory by means of an internal sales order.

Purchase Requisition - the requisition lines are usually satisfied from an outside supplier by means of a purchase order.

The names and access, security and control specifications of these requisition types can be defined in the Document Types form.
The default is Purchase Requisition upon entering the Requisitions form. When an Internal requisition is submitted, a sales order is automatically created.

3. Field: Description (Optional)
Navigation for Setup: None required
Profile Option for Setup: None required
This field allows the user to enter a brief description or explanation of the requisition's purpose. Any information entered here is supplemental information (not required for requisition processing).

Entering Requisition Lines

Use the Items tabbed region in the Requisitions window to enter requisition line information.
You can choose a predefined item or you can an enter an item without an item number.
To enter requisition line information:
1. Navigate to the Items tabbed region in the Requisitions window.

2. Enter a line Type for the requisition line. Line types help you define how you want to categorize your items. The default for this field is the Line Type from the Purchasing Options window. If you change this line type, defaults from the Line Types window appear in the Category, UOM and Price fields, and the cursor moves to the Category field.
For purposes of requisition line entry, line types are handled in three classes: amount-based, quantity-based, and outside processing. The defaults that appear when you enter a line type are cleared if you change the line type to a different class. Once you have committed a line, you can change the line type only to another line type of the same class.

3. For quantity-based line types and outside processing line types, enter the Item you want to request. Purchasing displays defaults for purchasing category, item description, unit of measure, and unit price for this item.

4. Enter the Revision (if any) that corresponds to the item you want to order.

5. Enter the purchasing Category. You cannot change the category if you provide an item number in the Item field.

6. Enter the item Description to explain the item in further detail. When you enter an item number, Purchasing displays the item description from the Items window. You can change this description only if the Allow Description Update attribute for the item is enabled.

7. Enter the Quantity you want to request for the item. You can enter decimal quantities, but you must enter a value greater than 0. You can use the Catalog button to get price breaks for different quantities from catalog quotations or blanket purchase agreements.

If Quantity Rounding is enabled, Purchasing either displays the rounded quantity you should have entered in a warning message or it updates the quantity to the appropriate rounded quantity. The rounding is based on the Unit of Issue (or primary unit of measure if the Unit of Issue is not defined) and the Rounding Factor defined for the item in Inventory. Rounding is up or down to the nearest whole Unit of Issue/primary unit of measure using the rounding factor.

8. Enter the unit of measure you want to use for your requisition line. If you enter an item number, Purchasing defaults the unit of measure for this item. If you change this value, the quantity is rounded again if appropriate, and the price is recalculated. If you enter a line type that is amount based, Purchasing uses the unit of measure that you assigned to that line type in the Line Types window. You cannot change the unit of measure of amount based items.

9. Enter the unit Price for the item. You can enter the price in decimal format. You must enter a value greater than or equal to 0. If you enter an item number, Purchasing defaults the list price for this item, but you can change this value. If you create a requisition line for an amount based line type, Purchasing sets the price to 1, and you cannot change it. Unit prices are in the functional currency.

10. Enter the Need By date for the requested items. This is required only for planned items. You must enter a date greater than or equal to the requisition creation date.
The Charge Account is rolled up from a single distribution after the distribution is created. If more that one distribution is created for the line, Multiple is displayed.
The lower part of the screen below the Lines tabbed region consists of optional fields for which the default can be set in the Requisition Preferences window. See: Entering Requisition Preferences.

11. Enter or use the default Tax Code for taxable items.
The tax code defaults from the Tax Defaults region in the Purchasing Options window.
Accept the default tax code or select another. You cannot override the tax code if the profile option Tax: Allow Override of Tax Code is set to No, or the shipment has been received.
If on the requisition you change a tax source, such as Supplier or Site, then Purchasing does not redefault a new Tax Code on the current line, but does default it on new lines. The same is true even after you override the Tax Code: Purchasing does not redefault it on current lines when you change a tax source.
NOTE: If you change the Tax Code after already creating distributions for the line, the associated Recovery Rate on those distributions is not redefaulted for the new Tax Code.

12. Enter the Destination Type:
Expense - The goods are delivered to the requestor at an expense location. The destination subinventory is not applicable.
Inventory - The goods are received into inventory upon delivery.
Shop Floor - The goods are delivered to an outside processing operation defined by Work in Process. Purchasing uses this option for outside processing items.
13. Enter the name of the employee who is requesting the item. You must provide a Requestor before you can approve the requisition. The default is the requisition preparer.

14. Enter the Organization.

15. Enter the delivery Location for the requested items. Purchasing defaults the deliver-to location that you assign to the employee in the Enter Person window. You must provide a deliver-to location before you can approve the requisition. Before the source of the line can be Inventory, the deliver-to location must be linked to a customer address in the Customer Addresses window. See: Assigning a Business Purpose to a Customer Address.

16. Enter the Subinventory. This field applies only when the Destination Type is Inventory.

17. Enter the Source type. The source type determines the source of the requisitioned items. The choice you have in this field is dependent on the PO: Legal Requisition Type profile option. You may be able to use either the Inventory or the Supplier source type, or both types.

Note that if you have both options, you can source requisition lines independently of the document type. You can even mix inventory and supplier sourced requisition lines in the same requisition. Purchasing creates one internal sales order for all inventory source type requisition lines on this requisition. The supplier source type requisition lines are placed onto purchase orders with the AutoCreate Documents window.
Even if you are restricted to one type, Purchasing restricts the source type as appropriate for the item. If you are restricted to Inventory but you are requesting a Supplier item (Purchased Item attribute - Yes, Internal Ordered Item attribute - No), the source type can be only Supplier. Conversely, if you are restricted to Supplier requisitions and you ask for an Inventory item (Purchased Item attribute - No, Internal Ordered Item attribute - Yes), the source type can be only Inventory. This is allowed because a requestor may not know the item source type.
For Inventory source type lines, you can enter a default Organization and Subinventory. If you specify a subinventory for an internal requisition line, Order Management reserves the goods and uses only the specified subinventory for allocation. If the goods do not exist at the specified subinventory, Order Management backorders them, even if they do exist in another subinventory.

18. For the Supplier source type, enter the suggested Supplier, Supplier Site, Contact, and Phone. For the Inventory source type, enter the Organization and Subinventory.

19. Save your work. If you save a requisition line without entering a distribution, Purchasing tries to generate a distribution line for you, using the Account Generator based on the information you have entered. If you want your distribution account numbers to be generated based on project information, you must enter project information in the Requisition Preferences or Requisition Distributions windows before committing the distribution line.
To enter line source details for the Supplier source type:
Navigate to the Source Details tabbed region. When the source type is Supplier, you can enter the Note to Buyer, Buyer, RFQ Required, Supplier Item number, source Document Type (Blanket or Quotation), source Document, and document Line Number.
To enter line details:
Navigate to the Details tabbed region. You can enter a Justification, Note to Receiver, Transaction Nature, Reference Number, UN Number, and Hazard class.
To enter line currency information
Navigate to the Currency tabbed region.
1. Enter a suggested currency for the requisition line. This must be an enabled code from the Currency window. The cursor enters the remaining currency fields only if you have entered a currency here.
2. Purchasing supplies you with one of two predefined currency rate types: User or EMU Fixed. A rate type of User means that you can enter a conversion rate between the foreign currency (or transaction currency in a document entry window) and the base currency (or functional currency, defined in your set of books). A rate type of EMU Fixed means that if either your transaction currency or your functional currency is Euro (the European Monetary Unit currency) and the other is another European currency, Purchasing automatically enters a conversion Rate Date and Rate for you that you cannot change.
3. You can define additional currency rate types in the Define Daily Conversion Rate Types form, and you can enter User or one of your additional types.
4. Enter the currency rate date.
5. Enter the currency conversion rate. Purchasing overrides this default when you are entering requisition lines if the rate type is not User and if you have established a rate for the rate type and date.
To enter outside processing information:
Select the Outside Processing button to open the Outside Processing window for outside processing line types.
To open the Supplier Item Catalog:
With the cursor in a requisition line row, select the Catalog button to open the Supplier Item Catalog.
To enter requisition distributions:
Select the Distributions button to open the Distributions window.
To view tax information:
After you have entered and saved all tax information, do either or both of the following:
Choose Tax Code Summary from the Tools menu to see the total recoverable and non recoverable tax for each tax code in your document.
Choose Tax Details from the Tools menu to see recoverable and non recoverable tax details for each line and distribution.
To approve requisitions:
Select the Approval button to open the Approve Documents window.
To check funds:
Select Check Funds on the Tools menu.
To enter requisition preferences:
Select Preferences on the Tools menu to open the Requisition Preferences window.
To reaccess a requisition quickly:
Choose Place on Navigator from the Action menu. Choose the Documents tabbed region in the Navigator to later access the requisition more quickly.
NOTE: Once you place a document in the Navigator, it is the first thing you see in the Navigator the next time you log into Purchasing. Choose Functions to return to the Purchasing menu.

Entering Requisition Distributions

Use the Distributions window to enter requisition distributions or to view distributions that Purchasing has automatically created for you. You can charge the cost of this requisition line to multiple Accounting Flexfields or update the default values you provided in the Requisition Preferences window. Note that if the line source type is Inventory, you cannot approve the requisition if you enter more than one distribution line.

To enter requisition distributions:

1. Navigate to the Distributions window by selecting the Distributions button in the Requisitions window. You begin in the Accounts tabbed region.

2. Enter the Quantity you want to distribute. The quantity must be in decimal format. Purchasing displays the quantity you have not yet assigned to an Accounting Flexfield. Multiple distribution quantities must total to the requisition line quantity. Using decimal quantities in this field, you can easily distribute costs across distributions using percentages. For instance, you can have a simple quantity of one (1) on your requisition line. If you want to charge one Accounting Flexfield for 30% of the cost of the item and another Accounting Flexfield for 70% of the cost of the item, simply enter .3 and .7 as the respective quantities for the requisition distribution lines.
If you have a quantity different from one (1), you can use the Calculator to perform the arithmetic, as illustrated by the following example:
Your requisition line quantity is 5000
You want to charge 35% of the cost to a first Accounting Flexfield
You want to charge 65% of the cost to a second Accounting Flexfield
Simply enter (5000x35)/100 = 1750 as the quantity for the first requisition distribution and (5000x65)/100 = 3250 as the quantity for the second requisition distribution.

3. When you enter a Charge Account, Purchasing uses the Account Generator to automatically create the following accounts for each distribution:
Accrual: the AP accrual account
Variance: the invoice price variance account
If you are using encumbrance control, Purchasing also creates the following account for each distribution:
Budget: the encumbrance budget account
The Account Generator creates these accounts based on predefined rules. See: Using the Account Generator in Oracle Purchasing User's Guide.
With one exception, you cannot create or update these accounts manually. If the requisition line destination type is Expense, however, you can change the default charge account supplied by the Account Generator.

4. Change or accept the default Recovery Rate for taxable items.
The recovery rate is the percentage of tax that your business can reclaim for credit. The recovery rate defaults in based on the Tax Code on the line in the Requisitions window and the setup in the Financials Options window.
You can change the recovery rate if the profile option Tax: Allow Override of Recovery Rate is set to Yes, and the shipment has not been received. Depending on the setup in the Financials Options window and the type of tax, only certain recovery rates may be allowed.
If on the requisition you change a tax source, such as Supplier, Site, or Tax Code, then Purchasing does not redefault a new Recovery Rate on the current distribution, but does default it on new distributions you create.
You can choose to use a different recovery rate for different distributions, even if they use the same tax code.

5. Enter the GL Date that you want to use when you reserve funds. You can enter a GL Date only if you set up your financials options to use encumbrance for requisitions. The Reserved check box indicates whether funds have been reserved. The default is the current date.
If you enter a date that belongs to two separate accounting periods, Purchasing creates a journal entry in the first accounting period that contains this date.

6. Save your work.
To view tax information:
After you have entered and saved all tax information, do either or both of the following:
Choose Tax Code Summary from the Tools menu to see the total recoverable and non recoverable tax for each tax code in your document.
Choose Tax Details from the Tools menu to see recoverable and non recoverable tax details for each line and distribution.
To enter project information:
You see a Project tabbed region if one of the following is true:
Oracle Projects is installed, or
Oracle Project Manufacturing is installed and Project Reference Enabled is selected in the Project Manufacturing Organization Parameters window
The project information you enter is used by Oracle Projects for destination types of Expense, or by Oracle Project Manufacturing for destination types of Inventory or Shop Floor.
1. Choose the Project tabbed region.

2. Select a Project Number.
For a requisition line Destination Type of Inventory or Shop Floor, you can optionally enter a Project Number if the Project Control Level is set to Project in the Project Information tax region of the Organization Parameters window.
For a requisition line Destination Type of Expense, you can always optionally enter a Project Number.

3. If you entered a Project number, select a Task number.
You must enter a Task number for a requisition line Destination Type of Inventory or Shop Floor, if the Project Control Level is set to Task in the Organization Parameters window and if you have entered a Project number.

4. Enter Expenditure information. Expenditure information is required only if your Destination Type is Expense.
Select the Expenditure Type.
If you chose an Expenditure Type, enter an Expenditure Organization.
If you chose an Expenditure Organization, select the Expenditure Date.

5. Note that the distribution Quantity that will be charged to the project should already be entered for you.
You change the Quantity here, then the distribution Quantity on the requisition line changes as well.

6. Note that a Unit Number field is visible if Project Manufacturing is installed.
If the item is under model/unit effectivity control, you must select an end-item model Unit Number. This field is disabled if the item is not under model/unit effectivity control.
Note: You can also view the Unit Number as a hidden field in the Requisition Distributions Summary window.

7. Save your work.
The Charge, Budget, Accrual, and Variance accounts in the Account Description region are generated automatically.

Thanks & Regards,
S.Grace Paul Regan