Some PO FAQ from Net

1. Define Requisition?
A. It is an internal request raised by an employee or an inventory organization for the requirement of material for services.

2. What is the process for requisition import?
A. Use the Requisition Import process to import requisitions from other Oracle or non-Oracle systems. Work in Process, Master Scheduling/MRP, Order Entry, and Inventory (as well as custom systems) can provide requisition information for the Purchasing requisition interface table. For example, drop-ship orders from Order Entry and Kanban orders from Inventory are sent to the requisition interface table and converted into requisitions. Also, project and task information from Master Scheduling/MRP are imported through the Requisition Import process. Requisition Import creates a requisition line and one or more requisition distributions for each row it finds in the interface table. It then groups these lines on requisitions according to parameters you define below.

3. What is meant by RFQ?
A. RFQ  terms is widely used in Purchasing context,it means request for quotation . This is prepared to request supplier to send his quotation for mentioned items and quantities. Supplier send its quotation to buyer, which buyer enters into application.

4. What are the types of RFQ's?
A. There are three types of RFQs
Standard:  Use for one time purchase.
Bid:  Use when the items are less & price is  very high.
Catalog: Use when the number of items are more.

5. What is meant by quotation and quotation analysis?
A.
Quotation: Statement consisting of current price of the commodity which the supplier will be sending to the organisation, when we place RFQ.
Quotation Analysis: After receiving the quotation from different suppliers we select the best quotation, the process of selecting the best is know as quotation analysis.

6. What is meant my PO?
A. A legal document used to request someone to supply something in return for payment and providing specifications and quantities.

7. What are the types of PO?
A.
1. Standard Purchase Order
2. Blanket Purchase  Agreement
3. Contract Purchase Order
4. Planned Purchase  Order

We can issue blanket releases against blanket purchase agreement, we can issue scheduled releases against contract purchase agreement.

8. What are the types of receipts?
A. There are two types of receipts in purchasing
1.Express
2.Cascade

9. What is meant by receipt routing?
A. Receipt routing is a process by which the receipt is processed and sent to Accounts Payables for payment to vendor or supplier.
Receipt routing are of three types..
1. Standard routing
2. Direct routing
3. Inspection routing

Standard (Standard process of receipts)
Goods received from
supplier ---------->  sub inventory.

Direct (Delivers directly to stores)
supplier---->receiving area(staging area)------>sub inventory

Inspection (Raw Material is checked for Quality parameters (as per the quality plan) then accepted or rejected and sent to stores)
supplier----> receiving area------->inspection(done)---->sub inventory.

10. What is the purpose of receiving transactions?
A. You record inspections, deliveries, and material movements within receiving and inspection by entering receiving transactions. These transactions provide a history that allows you to track an item from its source to its destination.

From the time of receipt, many transactions may be required to record the movement of an item through the receiving and inspection process. For example, after being received, an item can be transferred, inspected, and then delivered. To help you keep track of an item within receiving and inspection, these transactions are linked to each other. You can use the Receiving Transaction Summary to view an item's transaction history as if it were a family tree with parent and child transactions. A parent transaction can have one or more child transactions, but a child transaction has only one parent transaction.

11. What is the use of Auto Create?
A. Auto Create function -- Will create PO Document  automatically (means u will come into PO window)by giving the requisition number in auto create window.

12. Why are expenses items typically accrued at period end, and why are inventory items always accrued on receipt?
A. As per Matching Concept all costs which are applicable to the revenue of the period should be charged against that revenue in order to determine net income of the business.
Inventory items are always accrued at receipt bcos you cannot book liability without receiving the asset.

What are the types of requisitions?

Purchase Requisitions Use the Requisitions window to create requisitions. You must choose the requisition type (internal or purchase). You can also provide a description, unlimited notes, and defaults for requisition lines. For each requisition line, you choose the item you want to order along with the quantity and delivery location. You can get sourced pricing from catalog quotations or open blanket purchase agreements. You can also choose a price from a list of historical purchase order prices. In the Distributions window, you can charge the item to the appropriate accounts, or you can let the Account Generator create the accounts for you. Once you complete the requisition, you send it through the approval process.

Internal Requisitions Unlike purchase requisitions, which are supplied from purchase orders, internal requisitions are supplied from internal sales orders. Internal requisitions are not picked up when you AutoCreate RFQs or purchase orders, nor can they be assigned to a buyer in the Assign Requisitions window.

Requisition Templates Use the Requisition Templates window to define requisition templates for items you purchase frequently. For example, if you frequently buy certain office supplies, you can set up an office supplies template for your requesters. This template consists of a list of all items, prices, and sourcing information you want available to the requester. When you want to order items from this template, use the Supplier Item Catalog, choose the office supplies template, and indicate the quantity you want to order. Purchasing supplies default sourcing and delivery information.

Imported Requisitions Purchasing lets you import or reschedule requisitions from other Oracle or non-Oracle systems. For example, Work in Process uses Requisition Import to create requisitions for outside processing. Similarly, Master Scheduling/MRP automatically creates requisitions using Requisition Import when you mass load purchase requisitions. Master Scheduling/MRP also automatically reschedules existing requisitions by updating the need-by date during this process. If you are using Inventory, you can send a requisition requirement to Purchasing and then run Requisition Import in Purchasing to create the requisition.

Paper Requisitions You do not need to create a requisition on-line to purchase an item. Instead, you can reference a paper requisition number directly on the purchase order Distribution Details. Later, you can use the Purchase Orders window to review the status of the purchase orders referencing the paper requisitions.