04 Suppliers

Copyright © 2010, Oracle and/or its affiliates. All rights reserved.

 Procure to Pay: Suppliers

Payment,
Sourcing Ordering
Analysis

RFQ, Supplier Requisition Purchase Receipt Invoice, Analysis,

Auction, selection orders & matching, manage
Quotation agreements payment suppliers

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 Objectives

After completing this module, you should now be able to do

the following:
• Define suppliers
• Define supplier sites
• Manage suppliers
• Identify key reports
• Understand setup options
• Understand additional implementation considerations

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 Agenda

• Understand suppliers role

• Define supplier records
• Manage suppliers
• Identify key standard reports
• Understand setup options
• Discuss additional implementation considerations

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 Overview of Suppliers

Import/Enter
Enter supplier invoice Validate invoice

Pay invoice

Match to PO

Create PO

Create accounting
entries
Enter requisition

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 Purchasing Use of Supplier Information

Requisition RFQ Quotation

Supplier

Purchase
order Receipts Returns Payment

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 Quiz

A site is a location for a supplier using which you can perform

various transactions such as payment, importing/entering
invoices, creating purchasing documents, receiving, and
returning items.
1. True
2. False

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 Flow of Default Values
Procurement Flow Payables Flow
Financials options

Purchasing options/Receiving options/Payables options

Supplier

Supplier site

Item 2 Invoice
1
PO Documents Distribution Scheduled
line payment line
1 Takes precedence over 2

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 Agenda

• Describe overview of suppliers

• Define suppliers
• Manage suppliers
• Identify key standard reports
• Understand setup options
• Discuss additional implementation considerations

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 Supplier Record Structure

Supplier

Tokyo Paris New York

Purchasing site Purchasing site Pay site

Primary Pay

Sue Taylor, Bill Wilson, Liz Miller, Aaron Carr,

Sales Mgr Sales Quotes Sales Rep AR Mgr

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 Entering Standard Supplier
Basic Information

• Organization Name
• Alias
• Name Pronunciation
• D-U-N-S Number
• URL
• Context Value
• Country of Origin
• Tax Registration Number
• Taxpayer ID

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 Supplier Company Profile

Company Profile
• Organization
• Tax Details
• Address Book
• Contact Directory
• Business Classification
• Products & Services
• Banking Details
• Surveys

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 Supplier Profile - Organization

• Parent Supplier Name

– Must already be defined to select Parent

Child Child
• Customer Number
Your
Your Supplier
Company Cust.
#9924

• Organization Type

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 Supplier Profile - Address Book
Supplier Sites
Address Details:
Contact Details:
• Country
• Phone Number
• Address information
• Email
• Address name
• Purpose

Tokyo Paris New York

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 Supplier Profile - Contact Directory

• Last Name
• First Name
• Title
• Email Address
Liz Miller
• Phone Number
Sales Representative
• Fax Number

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 Supplier Profile - Business Classification

Minority-Owned

Woman Owned Small Business

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 Supplier Profile - Banking Details

• Bank
• Bank Branch
• Bank Account

Operating Account
#432198-77

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 Supplier Terms and Control

Terms and Control

• Accounting
• Tax and Reporting
• Purchasing
• Receiving
• Payment Details
• Invoice Details

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 Supplier Profile - Accounting

• Ledger
• GL Default Accounts
– Liability
– Prepayments
– Bills Payable
– Distribution Set

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 Supplier Profile - Tax and Reporting

• Reporting Name
• Transaction Tax
– Tax Applicability
– Tax Reporting Codes
• Supplier Sites
– Self assessment taxes
– Transaction value-added tax (VAT)

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 Supplier Profile - Purchasing
Supplier:
• Supplier Hold
• Create Debit Memo from RTS Transaction
Supplier Site:
• Purchasing
– Ship-To Location
– Bill-To Location
– Ship Via
• Self-Billing
• Freight
– FOB
– Terms

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 Supplier Profile - Receiving

• Enforce Ship-To Location

• Receipt Routing
• Match Approval Level
• Quantity Received Tolerance
• Quantity Received Exception
• Days Early/Late Receipt Allowed
• Receipt Date Exception
• Allow Substitute Receipts
• Allow Unordered Receipts

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 Supplier Profile - Payment Details

Information about how you pay the supplier such as:

• Payment Method
• Payment Attributes
– Delivery Attributes
– Specifications
– Remittance Advice Delivery

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 Supplier Profile - Invoice Details

• Invoice Details
• Payment Terms
Hold from Payment
• Priority
• Terms
• Pay Date Basis
• Pay Group
• Always Take Discount
• Exclude Freight From
Discount
• Create Interest Invoice

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 Suppliers Quick Update Page

Supplier Information
• Supplier Name
• Supplier Number
• Taxpayer ID
• Tax Registration Number
• DUNS Number

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 Supplier Level Versus Site Level Entry

Tabbed Region Supplier Level Site Level

Organization Yes No
Tax Details Yes Yes
Address Book No Yes
Contact Directory Yes No
Business Classification Yes No
Products and Services Yes No
Bank Details Yes Yes
Surveys Yes No
Accounting No Yes
Tax and Reporting Yes Yes
Purchasing Yes Yes
Receiving Yes No
Payment Details Yes No
Invoice Details Yes Yes

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 Agenda

• Describe overview of suppliers

• Define suppliers
• Manage suppliers
• Identify key standard reports
• Understand setup options
• Discuss additional implementation considerations

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 Maintaining Supplier and Supplier Site
Information
• Changed values default only to new documents that you
subsequently create
• Where to make the change?

Net 30
Supplier 2/10, Net 30

Existing Site A Existing Site B New Site C

Net 30 Net 30 2/10, Net 30

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 Avoiding Duplicate Suppliers

• Before setting up a new supplier, verify it doesn’t already

exist.
• System requires unique supplier names. Relies heavily on
strong naming conventions.
• Benefits of avoiding duplicate supplier entry

Example #1 Example #2

XYZ Inc. XYZ Inc The Sun Sun Inc Sun Co

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 Merging Suppliers

Run supplier Identify duplicate ABC ABC

audit report suppliers Corporation Corp

Merge suppliers

Maintain audit Review merge ABC

trail results Corporation

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 Data Example - Supplier Merge

Oracle Corporation Oracle Corp

Target/Correct Supplier Incorrect Supplier

Site Names Site Names

CA-REDWOOD merge CA-REDWOOD
IL-CHICAGO FL-ORLANDO
copy
VA-RESTON
FL-ORLANDO

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 Merging Suppliers Reports

After you have merged suppliers, Payables automatically prints

the following reports:
• Purchase Order Header Updates Report
• Supplier Merge Report

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 Quiz

You use the following functionality to combine two or more

suppliers or sites that you identify as duplicate:
1. Purchase Merge
2. Inventory Merge
3. Supplier Merge

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 Agenda

• Describe overview of suppliers

• Define suppliers
• Manage suppliers
• Identify key standard reports
• Understand setup options
• Discuss additional implementation considerations

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 Supplier Reports

• Suppliers Report
• Supplier Audit Report
• Supplier Payment History
• Supplier Paid Invoice History
• Supplier Mailing Labels
• Purchase Order Header Updates Report
• Supplier Merge Report

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 Supplier Reports (Contd…)

• Supplier Open Balance Letter

• Invalid PO Supplier Notice
• Accounts Payable Trial Balance Report
• Invoice Aging Report
• Open Items Revaluation Report

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 Agenda

• Describe overview of suppliers

• Define suppliers
• Manage suppliers
• Identify key standard reports
• Understand setup options
• Discuss additional implementation considerations

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 Financials Options: Supplier-Purchasing

Supplier Purchasing

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 Financials Options: Human Resources

Human Resources
• Expense
• Reimbursement
• Address

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 Supplier Lookup Codes

• VENDOR TYPE
• MINORITY GROUP
• PAY GROUP
• FREIGHT TERMS
• SHIP_VIA
• FOB

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 Profile Options

PO: Secondary E-mail Address

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 Agenda

• Describe overview of suppliers

• Define suppliers
• Manage suppliers
• Identify key standard reports
• Understand setup options
• Discuss additional implementation considerations

1 - 43 Copyright © 2010, Oracle and/or its affiliates. All rights reserved.

 Responsibility for Supplier Entry/Maintenance

• Assign responsibility for supplier entry/maintenance

• Number of staff required
• Consider good internal control and segregation
of duties

2 Payables Clerks 1 PO Clerk

Create/adjust Add purchasing

suppliers contacts

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 Supplier Naming Conventions

• Benefits
– Prevent duplicate invoices and payments
– Improve system performance and supplier inquiries
– Provide accurate supplier reporting
• Who should develop the naming conventions?
• Document with sign-off by authorized approver(s)

Purchasing Payables Assets Others

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 Supplier Naming Convention Examples

Examples
• Exact spelling decided for easily
misspelled suppliers
• Exact spelling for top ten priority suppliers
• Determine use of case (CAPS, Title Case)
• List approved abbreviations
• Determine use of punctuation and
special characters
• Site name structure
• Address format

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 Supplier Numbering Options

• Two choices
– Automatic (numbers only)
– Manual (alphanumeric or numeric)
• Switch from manual to automatic
– Ensure that Next Automatic Number is larger than the
largest number assigned

Automatic Manual
2114 EE103
2115 GV104

2116 ST105
2117 ST106

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 Supplier Open Interface

Open
interface

Suppliers, Sites,
Contacts

Invoice

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 Setup of Fax or E-Mail

Options for communicating approved purchasing documents to

suppliers:

Printed Document Facsimile E-Mail

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 iSupplier Portal: Supplier Self-Service

Your Supplier Self Registration Suppliers

Company
Supplier User Registration

Supplier Profile Details

Address/Contact Info

Banking Details

Business Classifications

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 Summary

In this module, you should have learned how to:

• Define suppliers
• Define supplier sites
• Identify key reports
• Understand setup options
• Discuss additional implementation considerations

1 - 51 Copyright © 2010, Oracle and/or its affiliates. All rights reserved.