purcahsing fd

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ALLIED BANK LIMITED

FUNCTIONAL DESIGN DOCUMENT

ORACLE PURCHASING

A.F.FERGUSON &CO.

CHARTERED ACCOUNTANTS

A member firm of ne


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Table of Contents

1. OVERVIEW .......................................................................................................... 1-1

1.1 PURCHASING STRUCTURE.................................................................................... 1-1

1.2 REQUISITION ....................................................................................................... 1-1

1.3 REQUEST FOR QUOTATION (RFQ) ....................................................................... 1-2

1.4 QUOTATIONS ....................................................................................................... 1-2

1.5 PURCHASE ORDER ............................................................................................... 1-2

1.6 RECEIPTS............................................................................................................. 1-3

1.7 OPEN AND CLOSE PERIODS IN PURCHASING ........................................................ 1-3

1.8 SUMMARY ........................................................................................................... 1-4

1.9 OVERVIEW OF ORACLE PURCHASING INTEGRATION............................................ 1-6

2. MASTER DATA ................................................................................................... 2-7

2.1 APPROVED SUPPLIER LIST................................................................................... 2-7

2.2 APPROVAL HIERARCHIES .................................................................................... 2-7

2.3 POSITION FLEXFIELD ........................................................................................... 2-8

2.4 JOB FLEXFIELD.................................................................................................... 2-8

2.5 APPROVAL FLOW ................................................................................................ 2-9

3. PROCESS FLOWS ............................................................................................. 3-10

3.1 FIXED ASSETS (EXCEPT LAND AND BUILDING)&STATIONERY ITEMS ............. 3-10

3.2 GENERAL STATIONERY,TABLE STATIONERY &COMPUTER PAPERS ................. 3-11

3.3 BLANKET PO(FOR COMPUTERS) ...................................................................... 3-123.4 PURCHASE ORDERRENOVATION/CONSTRUCTION/ITPROJECTS ................... 3-14

3.5 LAND &BUILDING ............................................................................................ 3-15

3.6 PURCHASE ORDER APPROVAL PROCESS ............................................................ 3-16

3.7 RECEIPT OF ITEMS............................................................................................. 3-17

4. DATA ELEMENTS ............................................................................................ 4-18

5. ACCOUNTING ENTRIES ................................................................................ 5-25

5.1 AT THE TIME OF RECEIPT................................................................................... 5-25

5.1.1 Receipt of Inventory Items ............................................................................ 5-25

5.1.2 Receipt of Expense/ Capital items ................................................................. 5-255.1.3 For Projects .................................................................................................... 5-25


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Allied Bank Limited Functional Design DocumentPurcha

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1. OverviewThe Oracle Purchasing Module will be used at ABL to process following types of

purchasing activities in system.

Requisition Request for Quotations (RFQ); Quotations; Purchase Orders; Receipts against Purchase Orders;

CAPEX, Stationery and Services items will be purchased through Oracle Purchasing.

Following types of purchases will be handled through Oracle Purchasing:

1. Fixed Assetsa. Tangible Assets (Computers, Furniture & Fixtures etc)b. Intangible Assets (Software etc)

2. Stationery Itemsa. General Stationeryb. Security Stationeryc. Table Stationeryd. Computers Tonners

3. Service Items (Renovation etc)1.1 Purchasing StructureIn Oracle, Only two inventory organizations will be opened i.e. one for fixed assets and

other for remaining all. Purchasing functions are Operating Unit specific to ensuresecurity and control for entering and accessing purchasing documents. In ABL, Forty

Seven Operating Units will be configured. All purchase orders relating to ABL will be

entered in the relevant Operating Units.

1.2 RequisitionRequisition is a request for procurement of material form an external source. In ABL,

Only for General Stationery, Table Stationery and Computer Papers, Purchase Requisition

in Oracle will be prepared. For Fixed Assets except Land and Building, authorized user

will raise requisition in NINTEX and data will be imported to oracle through Oracle

Interface. Data imported from NINTEX will either be used to

Generate Blanket Release, Add line to existing PO,


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1-2

Generate New PO, or Generate New RFQ.

1.3 Request for Quotation (RFQ)Request for Quotation (RFQ) will be used for requiring quotations from suppliers, against

requisition entered in NINTEX. In RFQ, Category (Category-Sub Category-Type-Sub

Type-None-None) will be selected, which will be sent to selected suppliers.

1.4

QuotationsQuotation will be used in Oracle to negotiate price and terms with suppliers. Quotations

received from suppliers will be entered in the system against RFQ. Based on quotations

entered, Comparative Statement will be generated to compare different quotes of

Suppliers and approval of quotation will be taken in NINTEX.

1.5 Purchase OrderPurchase Orders are commitments booked in respect of purchase of items from suppliers.

Every Purchase Order (except for Construction/Renovation/IT Projects) will be entered orgenerated on basis of approved Quote. In ABL, following types of Purchase Orders will

be used:

Purchase Order Type Description

Standard Purchase Orders Standard purchase orders will be used for

goods or services where quantities as well as

delivery schedules are known. This type will

be used for all local purchases. Standard POwill be created for Stationery Items and Fixed

Assets.

Complex Purchase Orders For Projects (IT or Engineering Projects),

Complex PO will be used. Through Complex

PO, Retention Money, Mobilization Advance

etc will be catered through system.


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1-3

Blanket Purchase AgreementBlanket Purchase Agreements will be used for

those purchases whose delivery date is notconfirmed. At required date, release will be

entered into system. Blanket PO will be

created for Computers. It is here to be noted,

for Computers, user will have option to create

Standard PO.

The system will be so configured that automatic sequential number will be assigned by

the system to the Purchase Orders. Approval hierarchies and approval limits will be set up

in the system for approval of Purchase Orders.

1.6 ReceiptsAgainst approved Purchase Orders, except for Land & Building and Service items, receipt

will be entered in oracle on shipment of items to Branch or Store.

If items will be directly received at branch, then authorized person at branch willsign acknowledgement letter. Supplier will send Invoice and acknowledgement

letter to Establishment Department. Authorized user in Establishment Department

will enter Receipt into the system.

If items will be received at Store, the authorized user in Establishment Departmentwill enter receipt at the time of receiving the items.

1.7 Open and Close Periods in PurchasingOracle Purchasing has its own periods that user must open and close separately from the

General Ledger periods. The authorized user must open a purchasing period before any

purchasing transactions can be entered in that period. A closed purchasing period can be

opened later to allow purchasing transactions.


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Allied Bank Limited Functional Design Document Purch

A. F. Ferguson & Co.

a member firm of

1.8 SummaryFollowing types of Oracle forms will be used for different type of purchases.

Category Sub-Category

Purchase

Requisition

in NINTEX

Purchase

Requisition in

Oracle(Due to

Min/ Max

Planning)

RFQQuotation

Purchase

Order

Complex

PO

Blanket

PORelease Receipts

Capital

Items

Land, Building

Electrical

Equipment,

Vehicles, Furniture

& Fixture and

Software

Computers


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Allied Bank Limited Functional Design DocumentPurchasing


a member firm of

Category Sub-Category

Purchase

Requisition

in NINTEX

Purchase

Requisition in

Oracle(Due to

Min/ Max

Planning)

RFQQuotation

Purchase

Order

Complex

PO

Blanket

PORelease Receipts

Stationery

General Stationery,

Table Stationery

and Computer

Papers (Option 1)

General Stationery,

Table Stationery

and Computer

Papers (Option 2)

Security Stationery

Services

Construction,

Renovation, IT

Projects


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Allied Bank Limited Functional Design DocumentPurchasin

1-6

1.9

Overview of Oracle Purchasing Integration

Supplier Data

Payment Term

General Ledger

Interface

Journal Creation

Oracle PayablesPurchase Order

Order HeaderInvoice

DistributionOrder Lines

Oracle General Ledger

Payment Term

Global HRMSApproval

Hierarchy

Order Shipment

PO

Number

PO

Lines

Supplier Data

Supplier Data

Payment Term

Receiving

Control

Item Master

Receipt

R eceipt Header R eceipt Lines

Oracle Cost

Management

Cost of

Items

Receipt

Lines

Item

Master

Inventory Inventory Balances

NINTEX

Request For Quotation

Requisition Header Requisition Lines

Supplier Data


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2. Master Data2.1 Approved Supplier ListSupplier Master Data will be maintained in Oracle Payables by authorized user of Finance,

Establishment, IT, Engineering Department or Region Office. The authorized user in Finance,

Establishment, IT, Engineering Department or Regional Office will open the new supplier in the system.

The detail of supplier master information is given in the functional design document of Oracle Payables.

These suppliers will be associated with items or item categories through Approved Supplier List (ASL)

functionality. This list will ensure that PO is processed for approved supplier in Oracle Purchasing. At

ABL, ASL will be maintained for Fixed Assets only. Only the authorized persons in Establishment

Department will have access to make changes in ASL. At the time of creation of Item Master, the

authorized user will have the option to determine that ASL is to be used or not for this item. If ASL is

enabled for an item, system will not allow creation of Purchase Order for a supplier not appearing in

ASL. ASL will be maintained at the following level.

Supplier Level

The list of approved suppliers will be maintained for each item or item category. Each supplier in the

ASL may have one of the following statuses:

Approved: Purchase Orders can be raised in the name of this supplier.

Debarred: New Purchase Orders cannot be created in the name of this supplier. This option will be used

in case transactions for particular item are to be restricted with a supplier.

New: Supplier has just started providing supplies to ABL

The authorized user in the Establishment Department will be required to update the Approved Suppliers

List in the following cases:

1.Upon creation of a new item code for which ASL has been enabled;2.Upon creation of a new supplier for an existing item

At the time of creation of ASL, the user will also have the option to specify a review by date which will

indicate a planned review of an existing approved supplier.

2.2 Approval HierarchiesApproval hierarchies will be used in Oracle Purchasing to route the Purchase Documents for approval.

Approval hierarchies will be used in order to automate the approval process for Purchase Order.


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2-8

All the users involved in the purchasing process will be included in the approval hierarchy for these

documents. Using approval hierarchies, the above documents will be routed to different positions in the

organization based on the approval limits. The document preparer will submit the document for approvaland system will forward the document automatically to next position based on the approval hierarchy

assigned to this document. Approver assigned to next position will receive an online notification in the

system. Upon approval, the system will either submit the document to the next person in the approval

hierarchy or will update the status of the document to approved depending upon the approval limit of

each individual.

Approval Groups and Assignments

Approval Groups and Assignments will be used in Oracle Purchasing to define the authority for approval

of users based on certain criteria. Each user included in the approval hierarchy of purchase documents

will be assigned to a particular level / approval group based on their approval authority. The system will

be so set up that the users of each level approval group will be able to approve purchase requisitions etc

based on the following criteria:

Document Amount Total: Authority to approve documents up to a certain amount limit.

Range of Items: Authority to approve documents for certain Items.

Range of Item Categories: Authority to approve documents for certain Item Categories.

2.3 Position Flex fieldIn Oracle Purchasing, positions are assigned to employees for creating position hierarchy for the purpose

of document approval.

Segment

Number

Name Segment

Size

Sample Values

2.4 Job Flex fieldIn Oracle HRMS, position is created against a particular job. Jobs are generic in nature and are used for

reporting purpose i.e. employee turnover, appraisal rating etc.

Segment

Number

Name Segment

Size

Sample Values


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2-9

2.5 Approval FlowFollowing flow will be made in Oracle Purchasing in order to approve Purchase Requisition andPurchase Order.

Type of

items

Initiator Approver 1 Approver 2 Approver 3

** Data regarding hierarchies, Job flex field and Position Flex field will be provided by ABL before FD

Sign-off.


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Allied Bank Limited Functional Design DocumentPurchas

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a member firm of

3. Process Flows3.1 Fixed Assets (Except Land and Building) & Stationery Items

Purchasing

This process will be used for procurement of Fixed Assets (Except Land &

Building) and all Stationery Items. It is here to be noted there would be option in

system to procure General Stationery, Table Stationery and Computer Papers

through requisition generated based on Min/ Max Planning.

Considering budget authorized user will raise requisition through NINTEX by

selecting first four segments of category (i.e. Category, Sub-Category, and Type &

Sub-Type) and DAO. Monthly quantitative budget will be maintained in Oracle

Quality Form according to first four segments of Category, Branch and DAO wise.

The user will have ability to view LOV of Category, Branch, Budget and Cost

Centre will be provided in NINTEX. For Stationery Items, on requisition form

actual utilization of inventory will also be shown. (Actual utilization will be

calculated as actual issuance in Oracle that will be provided through a View and

in process Requisitions in NINTEX for given category)

Authorized user in NINTEX will enter requisition and submit for approval, after its

approval it will be sent to Establishment Department. The status of requisition in

NINTEX will remain open unless acknowledgement is sent from requester.

Authorized user in Establishment Department will select item (on basis of four

segments of category) and will have following options in NINTEX;

3.1.1: Process Release against Blanket PO In ABL, Blanket PO and Blanket

Release will be used for Computers. The user in Establishment Department will

have ability to view all Blanket Purchase Orders (PO) along with the Supplier

name, site, quantity released and remaining quantity of purchase order in

NINTEX. User may select one or more POs to fulfill the requested quantity. On

selecting OK in NINTEX, required data to create release in Oracle Purchasing

will be interfaced and Blanket Release will be generated. Release will be

approved by Head of Establishment Department and delivery request will be sent

to supplier.

3.1.2: Add line to existing PO or Generate New PO To add Lines into existing PO,

authorized user in Establishment Department will have ability to view incomplete

POs with Oracle item, supplier, supplier site in NINTEX. On selecting OK in

NINTEX, required data will be interfaced and new line will be added in incomplete

PO.

If no open PO exist then user will select approved quote. On selecting OK in

NINTEX, required data will be interfaced and new PO will be generated in Oracle.

3.1.3: Generate New RFQIf for Category, no approved Quote exist, then buyer,

in NINTEX, will selects to create NEW RFQ .On selecting OK in NINTEX, required

data will be interfaced and new RFQ will be generated. For RFQ creation in Oracle

Purchasing Four segments of item category will be transferred from NINTEX and

other two will be defaulted as None. Quotations will be created in Oracle against

RFQ and a comparison statement will be made out of quotations entered.

Approval of quotation will be catered through NINTEX. After approval of Quote,

New PO will be created in Oracle.

Incase of wrong selection of Category or DAO, requisition in NINTEX will be

cancelled. Import programs will be scheduled to create Blanket Release, POs,

new RFQ etc. All imports from NINTEX will be referenced number that will be

captured in Oracle forms in DFF.

Description

Legend:Manual process Control

System process Decision

Link Manual Control

Manual Document Oracle Interface

Level 2

Fixed Assets(Except Land & Building) and

Stationery Items

Documentation Number

Documentation Level

Process Owner Establishment Department

3.1

Process

3Parent DocumentationNumber

User DepartmentConsidering budget, user

will enter requisition for

Fixed Asset in Nintex by

selecting first four segments

of item category

(category,sub-category,type

&sub-type)

Oracle

Interface

User DepartmentRequisition will be

forwarded for approval as

per approval hierarchy

Approved

Requisition

PO Approved as

per Approval

hierarchy

Whether Item will be

received in store or at

branch?

Establishment Deptt.

Received by Store

User Department

Acknowledgement

along with invoice sent

to Establishment Deptt.

`


Process Receipt in

Oracle

Oracle

Interface

Delivery

Request

Start

Supplier


Process of Release

against Blanket PO


Release approved as

per approval

hierarchy

Add line to existing

PO or Generation of

New PO


Generation of new

RFQ


Quotation Received

against RFQ


Comparative

statement will be

prepared in Oracle

and interfaced to

NINTEX for approval

Establishmement

Deptt.

Quotation

approved in Nintex

Acknowledge

ment

Branch/

Relevant

Departm

ent

Acknowledgement

Oracle

Interface

Process

in

Nintex

User Department

Received by Branch/

relevant Department


Establishment Department

After selecting item, Purchaser in

Establishment Department will have

following options:

Process Release against

Blanket PO

Create new PO

Create new RFQ

Cancel Requisition

Unless quantity requested is received

by user status of requisition will remain

open

3.1.1 3.1.23.1.3


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Allied Bank Limited Functional Design DocumentPur

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3.2 General stationery, Table Stationery & Computer Papers

ABL will use min-max planning to maintain inventory levels for all

Stationery Items(Except Security Stationery). With min-max planning,

authorized user in Establishment Department will specify minimum

and maximum inventory levels for items.

3.2.1: When the inventory level for an item will drops below the

minimum, Oracle Inventory will suggest a new requisition and upon

running request Purchase Requisition will be generated in Oracle

Purchasing.

3.2.2: If approved quotation does not already exist, then RFQ will be

entered in Oracle. Through which suppliers will be invited to submit

their quotes.

3.2.3: Quotation from suppliers will be received and entered in Oracle.

3.2.4: On basis of quotation received, authorized user in

Establishment Department will prepare Comparative Statement in

Oracle. For approval of Quote, it will be sent to NINTEX through

Oracle Interface.

3.2.5: Upon approval of Quote, authorized user in Establishment

Department will Enter PO in Oracle. It is to be noted here, upon

generation of requisition based on Min/Max Planning, if approved

quote exist for requested item, user in Establishment Department willdirectly enter PO.

3.2.6: After creation of PO, it will be approved as per approval

hierarchy defined in Oracle.

3.2.7:Upon receiving of items requested, Receipt will be entered in

Oracle.

Process owner(s)Establishment Department

PU 3.2Documentation Level

Allied Bank LimitedCompany

DescriptionEstablishment Department

Legend:

Nintex process Data Base

System process Link

Decision System Generated

Document


Start

Quantity of item fallsbelow minimum level


Creation of PO

(on behalf of approved quote)

3.2.5


PO will be approved as perapproval hierarchy

3.2.6


Receipt of inventory items

3.2.7


Purchase requisition will begenerated in Oracle

Purchasing3.2.1

End

Approved PO


Request For Quotationwill be entered in Oracle

Purchasing

3.2.2


Quotation will bereceived from supplierand entered in Oracle

3.2.3

Establishment DepartmentComparative Statement

of quotation will beprepared

3.2.4

Interface


Approval of Quotation inNINTEX

Oracle Interface

Approved

Quotation

Available?No

Yes

General Stationery, Table Stationery and Computer PapersProcess


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Allied Bank Limited (ABL) Functional Design DocumentPurchasing


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3.3 Blanket PO (For Computers)

Process Flow Description

StartFor computer, either standard PO will be entered or Blanket PO.

It is here to be noted either Blanket or standard PO will be

prepared only on basis of approved quote.

3.3.1: Upon generation, PO will contain information at

following levels:

Blanket Agreement Header,

Blanket Agreement Line(s),

Blanket Agreement Price Breaks.

System will maintain following status of a agreement:

Incomplete Blanket agreement is incomplete and the buyer

has to enter some more data on the blanket agreement form.

In-Process

It means that blanket agreement is in approvalprocess

Rejected Approver has rejected the blanket agreement.

ApprovedThis status represents that the blanket agreement is

approved.

Authorized User in Establishment Department will select

approved quotation in NINTEX and enter quantity required.

Information will be interfaced and blanket PO will be created in

Oracle purchasing.

An auto generated number will be assigned to the Blanket

Agreement by the system upon saving the document. A revision

number will also be generated by the system if any amendment

is made at the line level information (specifically if price is

change). A description of purchase order may also be entered on

the header level.

3.3.2: After preparation of blanket agreement, user will submit

the blanket agreement for approval.

3.3.3: Blanket Purchase Agreement will be approved as per

approval hierarchy.

Establishment

DepartmentGeneration of Blanket

Purchase

Agreement Header/Line

3.3.1

Inventory orgShip to Org

Item Master

Item,

Item description,

category, UOM,

List Price

Blanket

Header/Line


Submit blanket

agreement for Approval

3.3.2

Automatic sequence

no. will be assigned

to Agreement

Level 2

Blanket PO for computers

Documentation

Number

Documentation Level


3.3 (a)

Process

Parent Documentation

Number3 Legend:

Manual process Nintex


Link Manual Control

Manual Document SystemDocument

Supplier

Master

Supplier

name, site,

bill, ship-

to location

Approval

Notification

Leasing Department

Approval of Blanket PO

3.3.3

End

Notification to

Preparer

Information

entered through

Nintex

Oracle

Interface


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Start 3.3.1: For release creation, user in Establishment Department

will enter information for following level:

Release Header,

Release Line(s),

Release distributions.

Blanket Release will be generated in Oracle and Delivery

Request will be sent to supplier.

User in Establishment Department will select the Blanket PO

number against which release is to be processed.

3.3.2: After Approval, Blanket Release will now be available for

matching.

3.3.3: Upon receiving of Items, Receipt will be entered in Oracle

Purchasing.

3.3.4: Authorized person in Finance Department will match

invoice with PO.


Create Release Header/

Line/Distributions

3.3.1


Submit Release for

Approval

3.3.2

Release

Release data

will be

updated

BlanketAgreement

Item code,

Item description,category, UOM,

PriceOnly Approved

Blanket Agreements

will appear in the list

Cannot increase

blanket agreement

price outside override

limit

Automatic

sequence no will be

assigned to Release

Blanket

Agreement

Distribution

information

Level 2

Blanket Release (for computers)

Documentation

Number

Documentation Level


3.3 (b)

Process


Number3

Legend:

Manual process Control


Link Manual Control

Manual Document System

Document

Item Master

Nintex

OracleInterface


Invoice in Oracle Payables

3.3.4


Receipt in Oracle

Purchasing

3.3.3

End

GL Code


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3.4 Purchase Order Renovation/ Construction/ ITProjects

3.4.1: Engineering/ IT Department will create Complex PO for Construction, Renovation or IT P

Through Complex PO relevant user in department will enter percentage of retention

mobilization advance etc. Consequently, invoices regarding will be created in Payables.

3.4.2: Purchase officer will enter the f ollowing information at the PO header level:

- Supplier

- Purchase Type

Based on the current status of the Purchase Order, the system will automatically update the stat

The status of the Purchase Order can be any of the following:

Incomplete The Purchase Order has been created but not submitted for approval;

In Process-The Purchase Order has been submitted for approval but not yet approved;

ApprovedThe approving authority has approved the order. The Purchase Order can be print

the relevant items can be received against it;

Requires Re-approval After the Purchase Order had been approved certain amendments wer

that require re-approval.

3.4.3: Purchase Officer will enter following information at line level:

- Item

- Unit of Measure

- Rate

3.4.4: At PO distribution level, the account combination of item will default from inventory organ

3.4.5: Purchase order will be submitted for approval.

3.4.6: User in Finance Department will match complex PO with invoice in Payables.

Process Purchase Order Renovation/ Construction/ IT Projects

Engineering/IT DepartmentProcess owner(s)

3.4Documentation Level


DescriptionEngineering/ IT Department

PO Lines

PO HeaderSupplier

Master

Engineering/ IT Department

Update Information on

complex PO Lines

3.4.3


Update complex Purchase

Order Header

3.4.2

Legend:

Nintex process Data Base

System process Link


Document


Start


Create Complex PO

3.4.1


Submit for Approval

3.4.5


Purchase Order

Distribution

3.4.4

Approval

Group

Approved PO


Match with invoice in

Payables

3.4.6

End


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3.5 Land & Building


Start3.5.1: To purchase Land and Building, Engineering Department

will enter PO in Oracle.

Based on the status of the purchase Order , System will

automatically update the status field.

Incomplete Blanket agreement is incomplete and the buyer

has to enter some more data on the blanket agreement form.

In-Process It means that blanket agreement is in approval

process

Rejected Approver has rejected the blanket agreement.

ApprovedThis status represents that the blanket agreement is

approved.

Requires Re-Approved- After the PO had been approved

certain amendments we made that require re-approval.

3.5.2: Authorized user in Engineering Department will enter

information including Suppliers Name in Purchase Order

Header.

3.5.3: Authorized user in Engineering Department will enter

information including Item Code in Purchase Order Line.

3.5.4: At PO distribution level, the account combination of item

will default from inventory Organization.

3.5.5: Authorized user in Engineering Department will submit

PO for approval.

3.5.6: After approval, PO will be matched with Invoice in

Oracle Payables.

Supplier

master

Level 2

Land & Building

Documentation Number

Documentation Level

Process Owner Engineering Department

3.5

Process


Number3 Legend:

Manual process Nintex


Link Manual Control

Manual Document SystemDocument

Engineering Department

Creation Of PO

3.5.1


Enter/Update Purchase

Order Header

3.5.2



Order Lines

3.5.3



Order Distributions

3.5.4


Submit for Approval

3.5.5

Approval

Group

PO Lines

PO header


Match with Invoice in

Oracle Payables

3.5.6

End


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3.6 Purchase Order Approval Process

A position based approval hierarchy will be set up in the system at ABL. Moreover, approval limits will be set

up in the system for assigning approval authorities to specified positions.

3.6.1: Upon completion, the Purchase Order preparer will submit the Purchase Order for approval. System

will forward the Purchase Order automatically to relevant approver based on the position hierarchy assigned to

Purchase Order document. Approver will receive an online notification in the system. Upon review, the userswill have the option to perform following functions:

Approve the Purchase Order;

Reject the Purchase Order for cancellation or amendment; and

Request additional information.

The Requestor at any stage can check the status of the Purchase Order either online from the Purchase Order

summary window or by generating the Purchase Order Status Report. The system will maintain a complete

track of history of actions performed on a particular Purchase Order.

3.6.2: Approver can also request information from other users created in Oracle, if any. System will send an

online notification to requestor in this regard.

3.6.3: On receipt of notification for approval relevant authority will have the option to open the

attached Comparative Statement and compare it with the Purchase Order. The authorized user will have

the option of amending Purchase Order. In case a Purchase Order is rejected, system will automatically send a

notification to the preparer, informing him of the rejection of the Purchase Order. At the time of rejection the

approving authority will have the option to specify the reason for rejection. The requestor will supply the

required information on the notification and will reply online to approver.

3.6.4: In case there is any issue with the Purchase Order, approver will reject the Purchase Order. System will

automatically send a notification to the preparer, informing him of the rejection of the Purchase Order. At thetime of rejection the approving authority will have the option to specify the reason for rejection and may ask

purchaser to either amend or cancel the Purchase Order.

3.6.5: If an item is no longer required to be purchased, the authorized users will on instruction of approver

cancel or close a Purchase Order or a specific Purchase Order line through Control Documents functionality.

3.6.6: In case any modification is required in the Purchase Order, the purchaser will amend the Purchase

Order and resubmit it for approval of the relevant approver.

3.6.7: Approver can either approve Purchase Order himself or forward to other personnel to approve on his

behalf.In case, approver is not available, vacation rules can be defined in the system to automatically route the

Purchase Order for approval of other approver specified on vacation rules.

3.6.8: Upon approval of the Purchase Order, system will automatically send notification to purchaser

regarding its approval.

Process Purchase Order Approval Process

Engineering / Establishment / IT DepartmentProcess owner(s)



3.6.6

Modify Purchase Order

Purchasing department

Dispatch PO to

supplier

Approved Purchase

Order

PO

PO

Approval

Heirarchy

Notification forreapproval

3.6.2

Send request information to

an other user


3.6.5

Cancel/Close Purchase

Order


End

Is Additional

Information required

for Approval

Is PO to be

ApprovedReview Purchase Order for

approval


Request Information

Notification

Preparation of PO

Approval

Notification

3.6.8

Send Notification to Purchase

Order Preparer


Reply Notification

3.6.3

Enter Additional

Information supplied by

the requestee

Relevant Department

3.6.4

Reject Purchase Order


Notification

Is Purchase Order

to be cancelled?

3.6.7

Approve PO in the System


Approval

Groups

DescriptionProcess Flow

3.6.1

Submit for approval


No Yes

No

No

Yes

Yes

Legend:

Manual process Data Base

System process Link


Document

Manual Document


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3.7 Receipt of Items

In ABL, for all Assets and Stationery items, Receipts will be processed in the system against Ap

Purchase Order. Items will be received either at relevant Branch/ Department or at Establi

Department . Further procedure will be distinguished as follows:

If items will be received at Branch then following process will be followed;

3.7.1: Supplier will get the Acknowledgment Letter signed by the authorized person in Branch/Depart

3.7.2: Supplier will send the invoice to the Establishment Department along with the

Acknowledgment Letter.

3.7.3: Authorized user in Establishment Department will enter the Receipt in Oracle against the pu

order.

3.7.4: Authorized person in Finance department will process invoice through matching PO.

If items will be received by the Establishment Department, then following procedure will be followed

3.7.5: Establishment department will enter Receipt for items received. After receipt, Invoice will b

Finance Department for further proceed.

Process Receipt of Items

Establishment Department / Branch OfficeProcess owner(s)



DescriptionProcess Flow

Whether items will be received by

Branch/ Department or Establishment

Department?

Legend:

Manual process Data Base

System process Link


Document

Manual Document

Start

Authorized person

will sign the

acknowledgment

letter

Relevant Branch/

Department

Supplier will send

acknowledgment

letter to

Establishment

Department along

with invoice

Authorized person

in Establishment

Department will

enter receipt in

Oracle

Authorized person

in Establishment

Department will

enter receipt in

Oracle

Finance

Department will

enter invoice in

Payables

3.7.1

3.7.2

3.7.3

3.7.5

3.7.4

Establishment

Department


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4. Data ElementsDocument Type Request For Quotation

HEADER LEVEL

Standard Fields

Sr.

No.Data Field

1 RFQ Type

2 RFQ Description

3 Ship To & Bill To

4 Due Date

5 Supplier/Supplier List Name (Supplier button)

6 Terms & Conditions (Terms button)

7 Currency Information (Currency button)

Descriptive Flex fields

Sr.

No.Context Value Data Field

LINE LEVEL

Standard Fields

Sr.

No.Data Field

1 Line Number


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2 Line Type

3 Target Date


Sr.


Document Type Quotation

HEADER LEVEL

Standard Fields

Sr.

No.Data Field

1 Quotation Type

2 Quotation Description

3 Ship To & Bill To

4 Supplier Quote Number

5 Supplier Name

6 Supplier Site




Sr.



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LINE LEVEL

Standard Fields

Sr.

No.Data Field

1 Line Number

2 Line Type

3 Item Code

4 Category

5 Description

6 UOM

7 Target Date

8 Price


Sr.


Document Type Purchase Order

HEADER LEVEL

Standard Fields


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Sr.

No.Data Field

1 PO Type

2 PO Description

3 Ship To & Bill To

4 Supplier/Supplier List Name (Supplier button)



7 Note to Receiver


Sr.


1 General

LINE LEVEL

Standard Fields

Sr.

No.Data Field

1 Line Number

2 Line Type


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3 Item Code

4 Category

5 Description

6 UOM

7 Quantity

8 Price

9 Promised date

10 Need by date

11 Note to Supplier


Sr.No.

ContextValue

Data Field

SHIPMENT LINE LEVEL

Standard Fields

Sr.

No. Data Field

1 Shipment Line Number


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Document Type Receipt

HEADER LEVEL

Standard Fields

Sr.

No.Data Field

1 Receipt Date

2 Receipt number (Inward Gate Pass Number)


Sr.


LINE LEVEL

Standard Fields

Sr.

No.Data Field

1 Receipt Quantity

2 Ship to Location


2 Ship To Organization

3 Match Approval Level

4 Invoice Match Option

5 Ship to Location


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Sr.



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5. Accounting Entries5.1 At the time of Receipt5.1.1 Receipt of Inventory ItemsAt the time of receipt of Stationery Item, the following accounting entry will generate;

Account Description Dr Cr

Inventory Valuation Account * XXX

Inventory AP Accrual Account XXX

5.1.2 Receipt of Expense/ Capital itemsAt the time of Receipt of Fixed Assets following accounting entry will be generated;


CWIP Clearing Account * XXX

Relevant AP Accrual Account XXX

5.1.3 For ProjectsAt the time of entering invoice in Payables, following entry will be entered.


PO Charge Account XXX

Creditor Account XXX