To set up purchasing information:Purchasing recognizes items, while eAM recognizes resources. As a result, you must link the contractor service item to a resource, for the purchase order to link to the work order. This is associated via the Resources window. Additionally, the resource must associate with a department. The department must specify the location where the services are to deliver. This must be a valid location for the organization.
For each contractor service resource, you can determine whether the rate charged to the work order is a standard rate or the actual amount, based on the purchase order price. This is set up within the Resources window, and may vary for each resource.
To set up purchasing information:Navigate to the Financials Options page.
Select the Supplier-Purchasing tab.
The options you define in this region, except for Inventory organization, are used as default values for the Purchasing region of the Suppliers window (See: Suppliers, Oracle Payables User's Guide).
The supplier values default to new supplier sites for the supplier, which default to new purchasing documents for the supplier site.
Select Ship-To and Bill-To Locations.
These are the names of the ship-to/bill-to location for the system default values. If the name you want is not available, use the Location window to select a new location (See: Setting Up Locations, Using Oracle HRMS - The Fundamentals).
Select an Inventory Organization.
You can associate each of your purchasing operating units with one inventory item master organization. Your eAM Organization (See: Enabling Organizations for Enterprise Asset Management) should point to this item master. When you associate your purchasing operating unit with an inventory organization, items you define in this organization become available in Purchasing. You can choose an inventory organization that uses the same set of books as your Purchasing operating unit. Do not change the inventory organization after you have already assigned on to Purchasing.
Optionally select a Ship Via code.
This is the freight carrier you use with suppliers. If the type of freight carrier you want is not available, use the Freight Carriers window to define a new shipping method. The value you enter here is the value in the Description field of the Freight Carriers window in Purchasing.
Select a FOB.
If the type of FOB you want is not available, use the Oracle Purchasing Lookups window to define a new FOB.
Select a Freight Terms code.
The fright terms for a supplier identify whether you or your supplier pays for freight charges on goods you receive. You can define new freight terms in the Oracle Purchasing Lookups window.
Save your work.
To set up outside services as items:Create an item for each outside service such as landscaping services.
Navigate to the Master Item window.
Enter the item Name for the contractor service. For example, Landscape Service.
Select Copy From within the Tools menu.
Select @Outside Processing Item from the Template list of values.
Choose Apply.
Choose Done.
Within the Purchasing tab, ensure that the Outside Processing Item check box is selected.
Select the Resource Unit Type.
Resource costs are based on the resource standard rate.
Select a Default Buyer.
Enter a List Price for this contractor service.
Select Each for the Unit of Issue.
This is the unit of measure you use to issue the item from inventory.
Within the Receiving tab, select Direct from the Receipt Routing list of values.
Save your work.
Select the Organization Assignment tab on the left side of the window, then assign this item to the eAM organization.
Save your work.
To link outside service items to resources:You must define outside resources and link them to outside items in order to automatically generate purchase requisitions for outside services. When you assign outside resources to a department, you also specify a usage rate or amount that determines the quantity you are requisitioning and/or charging to work orders.
Navigate to the Resources page.
Select a unit of measure (UOM).
This value is the default unit of measure for all transactions, for the current resource.
Verify that the Enabled check box is enabled for outside processing.
Enter the outside services Item that was entered in Inventory and associate it with the eAM resource.
Select the Costed check box to include this outside resource in your work order cost.
When you define a resource with a charge type of PO Receipt, Cost Management automatically defaults Outside Processing as the cost element.
Enter an Absorption Account.
You must define an absorption account for each outside resource. The absorption account defaults from the organization's receiving account, which is debited when an outside processing item is received and is subsequently credited when the item is delivered to eAM. The debit goes to the outside processing account associated with the accounting class of the work order when the item is delivered to eAM.
Optionally enter a Variance Account.
You must define a purchase price variance account for each outside resource you define. This account defaults from the organization's purchase price variance account. If you select the Standard Rate check box while performing the next step, the Variance Account is mandatory.
Optionally select the Standard Rate check box to charge the standard, non-purchase order amount to the work order.
Clear the Standard Rate check box to charge the work order with the actual purchase order amount.
If you selected the Standard Rate check box, choose Rates to enter your standard rates.
Enter a Cost Type of Value. This is dependent on the costing method defined for your eAM organization.
Enter a Resource Unit Cost.
Save your work and close the window.
To link the outside service resource to a department:Navigate to the Departments window.
Select the Department to associate with the outside service resource.
Select a Cost Category for this department.
If this is left blank, then the costs related to this department are charged, based on the eAM parameter settings (See: Defining eAM Parameters).
Select a valid Location. This is mandatory.
Choose Resources.
Select the outside service Resource.
Optionally indicate whether this resource is Available 24 Hours a day.
You cannot assign shifts to a resource that is available 24 hours a day.
Optionally indicate whether this department can share this resource and capacity with other departments.
Enter the number of capacity Units (resource units) available for this department.
Save your work.
For information on all remaining fields, See: Defining a Resource.
To define WIP parameters:Navigate to the Work in Process Parameters page.
Select the Outside Processing tab.
Select a value for Requisition Creation Time.
At Job/Schedule Release - This enables automatic creation of a purchase order requisition, for contractor services, when the work order is Released.
Manual - Choose Manual to manually create requisitions.
With this selection, requisitions are not automatically created.
At Operation - Oracle recommends that you do not select At Operation.
Within eAM, At Operation is equivalent to selecting Manual.
Save your work.
