When you create a new negotiation, or edit a draft negotiation, you must identify the goods or services you want to purchase or for which you want quotes. You can enter lines online or bulk load lines from a spreadsheet. The spreadsheet is useful if you are adding a large number of lines.
You can aggregate lines into lots and groups. This can simplify the response and award processes. See Using Lots and Groups for more information on using lots and groups.
From the navigation bar in the top left corner, click "Lines."
On the Create: Lines page, select how the line will be ranked and how the ranking will be displayed. Line ranking is not performed in RFIs.
If you wish to score and weight your lines, select Multi-Attribute Scoring as the Ranking type. Also specify the ranking display method and whether to display the scoring criteria to suppliers.
If this is a complex work negotiation, you can choose to allow suppliers to modify any pay items provided in the negotiation by selecting the "Suppliers can modify Pay Items" checkbox. .
The Sourcing Administrator has defined the default types of cost factors available to negotiations, but you can override this value if you wish to use different types of cost factors.
If the document outcome for your negotiation is a blanket or contract purchase order, and you wish to use price breaks, you can specify a default price break type for all negotiation lines by selecting a value from the Price Breaks menu (the initial default for this menu is defined by the Sourcing Administrator). You can override this value at the line level as necessary.
None - no price breaks will be used
Required - Suppliers must respond to your price breaks and cannot add or modify them.
Optional - Supplier do not have to respond to your price breaks. They can also modify the price breaks you specify, and/or add their own.
If the document outcome for your negotiation is a standard purchase order, and you wish you use price tiers, you can specify a default price tier for all negotiation lines by selecting a value from the Price Tiers list of values.
None - no price tiers will be used
Quantity Based - If you select Quantity Based, you can import price tiers from a spreadsheet.
Price Based - If you select Price Based, you can import price tiers from a spreadsheet.
To import a spreadsheet, select Import Price Tiers from the Actions list of values, and click Go. On the Price Tiers: Import Spreadsheet page that displays, click the Export button to download the price tiers list. Save this list to a location on your desktop and make your updates to it. Now, Browse and select the updated file and click Import to import the price tier list.
If this is a complex work project two additional sections appear.
Financing
Retainage
Select the payment attributes appropriate for this negotiation. You can allow the supplier to negotiate these financing and retainage attributes by clicking the "Negotiate" checkbox. See Negotiating Complex Services for details about payment attributes.
Note: If you are creating this negotiation from a sourcing template, you can default the values for the "Suppliers can modify Pay Items" and "Negotiate" flags.
Add your negotiation lines by selecting the appropriate method from the Actions menu. You can add individual lines, lots, lot lines, groups, and group lines. You can also search the Unified Catalog and your Favorites List and select items from them. You can import lines from a previously prepared spreadsheet file. Select the appropriate entry from the Actions menu and click Go. Click the Roll Up button on the Line Details page to automatically calculate total price for lots when sublines contains price and quantity details.
Note: You can override automatic calculation manually if you prefer.
Once you have your lines, lots and groups added, you can move them around if needed.
On the Lines: Create Line page, provide the following information. *Indicates a required field :
Line Type The available line types are defined in Oracle Purchasing. The line type determines whether this is a quantity-based line, such as 50 laser printers, or an amount-based item such as consulting services.
If Oracle Services Procurement is installed and licensed, you have additional line types such as rate-based temp labor.
If the line type is amount-based, the unit of measure and quantity default and are display only.
If this is a complex-work negotiation, only Goods-based and Fixed Price line types are available, and the line can not be used in a lot..
To change the line type, select the line type you want and click Go. The page refreshes and the fields available for the line reflect the line type you select. If a negotiation was created AutoCreated from Oracle Purchasing, the line type value is carried from the backing requisition and is display only.
Item, Rev The number and revision for this item. If this document was AutoCreated from Oracle Purchasing, these values are carried from the backing requisition line and are display only. If you are entering an item in Sourcing, you can enter item information directly or search for items from the Item Master by clicking the flashlight icon. On the Search and Select: Inventory Item page, enter search values for either the item number or item description and click Go (note that the search values are case sensitive). From the Results display, click the link for the item you wish to add to your negotiation. You are returned to the Lines: Create Line page with the item number and description values displayed. If there are revision values for the item you selected, you can select the appropriate value from the Rev pull down menu. The item category appears in the Category field and cannot be updated.
*Description A text description of the item. If the negotiation was created from a backing requisition, the description is carried from the backing requisition and is display only. If the item was selected from Inventory directly from Sourcing, the description from Inventory will default.
*Category The group within the Item Master to which the item belongs. The default category value is based on line type. Click the flashlight icon to search for a category. If the negotiation was created from a backing requisition, the category value is carried from the backing requisition line item and is display only. If you searched from Sourcing for an item from the Item Master, the category value defaults to the category for the item and cannot be updated.
Shopping Category (Purchase Agreement Outcomes only)If the negotiation outcome is a purchase agreement (Blanket Purchase Agreement, Global Blanket Purchase Agreement, or Contract Purchase Agreement), you can additionally select a Shopping Category value and search the Unified Catalog (iProcurement Catalog). The Unified Catalog is a subset of the Item Master and uses its own category values to further categorize items. Note: lines from the Unified Catalog can not be used in complex work negotiations.
Additionally, when a requisition is autocreated to an RFQ (negotiation), all descriptors are copied from the requisition to the negotiation. You can see the descriptors in the Attributes region that are displayed and differentiated from catalog descriptors (shopping category) or base descriptors.
Unit of Measure Unit of measure in which you plan to purchase your item. The system recognizes the UN standardized unit of measure codes. If you selected an amount based line type above, the default for this field is set by the Sourcing Super User. If the negotiation was AutoCreated from a backing requisition, the unit of measure value is carried from the backing requisition line item and is display only. If you selected the item from the Item Master directly in Sourcing, the UOM values available to you are only those appropriate to the item.
*Quantity (standard purchase order only) Number of units of the item you want to purchase. If you selected an amount-based line type above, this field is display only, defaults to 1, and cannot be scored in a Multi-Attribute Weighted Scoring RFQ/Auction. If the negotiation was created from multiple backing requisitions, this is the total of the backing requisition line item quantities.
Estimated Quantity (blanket purchase agreements only) The organization's best estimate of demand for the item over the life of the blanket agreement. Note that this field is required for blanket purchase agreements and can be hidden from suppliers. It cannot be scored.
Minimum Release amount (blanket purchase agreement only) The minimum monetary amount for a release against a blanket agreement. The amount of a release must be equal to or greater than the minimum.
*Ship-To Address (standard purchase order only) The default address is the address you selected in Step 2. Accept the default address or click the flashlight icon to browse for a different address. If this negotiation was created from backing requisitions, the ship-to address is display only.
Default Owner (complex work negotiations only)
You can assign a default owner for this line. The value is used to default the "Owner" field in the pay items associated with this line. When the negotiation is awarded and is being executed, you can route your pay item work confirmation to the owner of the pay item for acceptance.
Currency and Price Precision This is the default ledger currency for your operating unit and the price precision you selected when you created your negotiation header. You cannot change these values .
Start Price The price at which responding for one unit of an item must begin. A start price is not required, but if the buyer specifies one, all responses must be equal to or below the Start Price. If the negotiation was created from backing requisitions, the start price defaults to the lowest requisition price of all requisitions for that item. However, if the line type is amount-based, the start price defaults to the requisition quantity.
Target Price Price you hope to pay for one unit of your item. Select "Display to Suppliers" if you want the participants to see your target price.
Current Price Price you are currently paying for the item. The current price is used to calculate negotiation performance used for savings calculations in the application.
Note: Suppliers are never able to view the current price.
Need-By From/Need-By To (standard purchase order only) Select the dates necessary to specify when you need to receive the item. If you supply values for both fields, you specify a time window (inclusive of the end date). If you leave both fields blank, there is no time constraint on receiving the item. A value in Need-By From with no value in Need-By To indicates the date on or after which you need to receive the item. A value in Need-By To with no value in Need-By From indicates the date on or before which you need to receive the item. You can use the pop-up calendar to pick your dates. If the negotiation was created from a single backing requisition, the Need-By From and the Need-By To fields are set to the requisition need-by date. If the negotiation was created from multiple backing requisitions, the Need-By From field defaults to the earliest requisition line's need-by date. The Need-By To field defaults to the latest requisitions need-by date.
If you source for an item (as opposed to sourcing for a category), Need-By date(s) are required.
If this is a complex work negotiation, you can enter additional relevant information:
Financing/Retainage
Enter the values for financing and retainage attributes. Organizations can also decide to default these values from the sourcing template applied on the sourcing document. See Negotiating Complex Services for an explanation of Financing options and Retainage.
Default Project Information - If you have enabled Oracle Projects for the organization and there are no backing requisitions for this line, you can enter the project information associated with this negotiation. The Award field is displayed if you have enabled Oracle Grants. The project information provided for the line is used to default the project information for the Pay Items associated with this line.
Pay ItemsTo associate a pay item with this line:
Click Add Another Row.
Enter a number in the Pay Item column.
Select the type of pay item from the Type menu. There are three values for Type: Milestone, Rate and Lumpsum. You can restrict the usage of certain types by setting up the Document Style appropriately in Oracle Purchasing. Note that the Outcome field in the Sourcing Header shows the Document Styles created in Oracle Purchasing.
Enter a description of the pay item.
If you selected a pay item type of Rate, select the unit of measure from the Unit menu and enter a number in the Quantity column.
Optionally enter a target price and a need-by date.
If you need to modify any pay item information, or if you wish to associate specific project information or provide a note or attachment to a specific pay item, click the Update icon and enter the information on the Update Pay Item page.
Attributes Attributes are used to describe the good or service being purchased. They identify characteristics which will negotiated on in addition to item price. To add attributes, click Add Another Row or Add Attribute List. In a Multi-Attribute Weighted Scoring negotiation, you can assign weights and scores to attributes.
Note that depending on how your system is set up, if the outcome of this negotiation is a purchase agreement (Blanket Purchase Agreement, Global Blanket Purchase Agreement, or Contract Purchase Agreement) item descriptors assigned to an item in the Item Master or the Unified Catalog may be automatically added as Attributes for that item. These attributes are assigned to the default Attribute Group, but you can modify that if necessary. If the system is set up to not automatically add descriptors as Attributes, you can add them yourself by clicking Add Catalog Attributes. On the Search and Select: Add Catalog Descriptors, click Go to see all the descriptors defined for that item, or enter a search value to see only those descriptors whose name or description begin with those characters.
Price Breaks (blanket or contract purchase agreements only)
Enter price break information to negotiate a pricing structure with your supplier based on quantity, ship-to location, and effective-date values.
See Using Price Tiers for information on defining price breaks.
Cost Factors Cost factors allow you to capture additional item costs such as freight or special charges.
See Using Cost Factors for information on using cost factors.
Select the Negative Cost Factor check box to indicate that the cost factor is a negative cost factor. Note that you must ensure that the total of the line price is not negative.
Note and Attachments Optional information you can provide to users of your document. See Using Notes and Attachments for details on using notes and attachments.
When you have finished entering your line information, click Apply. You return to the Create: Lines page and the line you just entered appears in the Lines table. To enter another auction item online, click Go. Follow the preceding instructions. Note that if your negotiation is a large or very large negotiation, you only see the line(s) you just created in the Lines table (if you used spreadsheet upload, or added lines from the Catalog or your Favorites, you could have created multiple lines). To display more lines, you must use the Search facility.
To add a line from the Unified Catalog:
On the Create: Lines page, select the Create Line from Catalog option from the Actions menu and click Go.
On the Stores page, select a store type and enter a search item in the Search fields, and click Go.
When the Search Results page display, select one or more items for which you wish to create negotiation line(s).
Click Add to Document.
On the right side of the page, you see information about the negotiation you are creating and the items you are adding. View the information and if it is correct, click Complete.
You are returned to the Create: Lines. If the item you selected from the Unified Catalog has an item number associated with it, you must define a Need-By date. Click the pencil icon for the line to update the line information.
On the Lines: Create Line page, use the pop-up calendars to enter Need-By dates. If you have a single Need-By date, you can enter it in either the Need-By From or the Need-By To field. If you have a range of dates, enter the beginning of the range in the Need-By From and the ending date in the Need-By To field. The earliest Need-By date must be later than the close date of the negotiation.
After you have specified your Need-By value(s), click Apply.
Note that if there is a supplier associated with the item, that supplier is automatically added to the invitation list for this negotiation, and you must specify a supplier contact. See Inviting Suppliers to Participate in a Negotiation for details on how to specify supplier contacts.
To add a line from your Favorites List(s):
On the Create: Lines page, select the Create Line from Favorites option from the Actions menu and click Go.
On the Shopping List page, select a Favorites List type and click Go.
When the page displays the items for that Favorites List, select one or more items for which you wish to create negotiation line(s).
Click Add to Document.
On the right side of the page, you see information about the negotiation you are creating and the items you are adding. View the information and if it is correct, click Complete.
You are returned to the Create: Lines. If the item you selected from the Unified Catalog has an item number associated with it, you must define a Need-By date. Click the pencil icon for the line to update the line information.
On the Lines: Create Line page, use the pop-up calendars to enter Need-By dates. If you have a single Need-By date, you can enter it in either the Need-By From or the Need-By To field. If you have a range of dates, enter the beginning of the range in the Need-By From and the ending date in the Need-By To field. The earliest Need-By date must be later than the close date of the negotiation.
After you have specified your Need-By value(s), click Apply.
Note that if there is a supplier associated with the item, that supplier is automatically added to the invitation list for this negotiation, and you must specify a supplier contact. See Inviting Suppliers to Participate in a Negotiation for details on how to specify supplier contacts.
To add Alternate Lines to the negotiation:
You can add alternate lines to the negotiation if the checkbox Allow Alternate Lines is enabled in the Line Summary page and Line Details pages. This checkbox is enabled only if the checkbox Allow Alternate Lines on Supplier Responses on the Controls page is enabled.
On the Create: Lines page, use the instructions on creating independent lines to create your lot.
After clicking Apply, you are returned to the Create: Lines page.
Lot lines are indicated by the market basket icon in the Line column. Click the plus sign icon in the Add Line column to add your first lot line.
On the Create: Lines page, follow the instructions on creating independent lines, adding lines from the Catalog, or adding lines from your Favorites list to create you lot line.
Repeat the preceding two steps to create your remaining lot lines.
On the Lines: Create Group , page enter a name for the group.
Click Apply.
Group lines are indicated by the summary page icon (the Greek letter sigma) in the Line column. On the Create: Lines page, click the plus sign icon in the Add Line column to add your first group line.
On the Create: Lines page, use the instructions on creating independent lines, adding lines from the Catalog, or adding lines from your Favorites list to create your group line.
Repeat the previous two steps to create the remaining group lines.
Moving lines within a negotiation:
After you have created your lines, lots and groups you can change their locations if necessary. The order of negotiation rules is important if you use staggered closing staggered closing for your negotiation lines.
When moving lines, note the following rules:
If you move a lot or group, you move its sublines as well.
You can move a lot line into a group or a group line into a lot.
You can remove a line from a lot or group to make it an independent line, but you cannot then turn that line into a lot or group (to create a new lot or group, you must click Create Lot/Create Group and follow the instructions above).
If you use the Within option to move a line into a lot or group, it is appended to the end of the lot or group.
You cannot move a group into a lot or a lot into a group
If a line has a backing requisition, it cannot be added to a lot (it can be added to a group).
To move lines:
On the Create: Lines page, select the line, lot or group you wish to move and click Move.
On the Lines: Move Lines page, the entries you selected previously appear as greyed out radio buttons. select a destination line, and select either After Selection, Within Selection, or Before Selection, and click Apply (you can only use Within Selection if you select a lot or group as the destination. Within Selection does not appear as an option if you chose to move a lot or group).
The Create: Lines page redisplays showing the lines moved.
Once your lines are correctly located, continue defining your negotiation.
Note that you cannot move lines within a large or very large negotiation .
To bulk load lines or pay items from a spreadsheet:
Select Import Lines to add lines to a negotiation. Click Import Pay Items to add pay items for a complex work negotiation. Pay items for all lines created so far are uploaded.
On the Lines: Import Spreadsheet page, click Export.
Save the .zip file to a convenient location on your machine.
Open the Instructions file (the .htm file) and follow the directions to complete the template.
When you have completed the template, return to the Lines: Import Spreadsheet page, navigate to the location of your completed spreadsheet file, and click Import.
If there are errors with the upload, error messages are displayed describing the errors. For each error, the message will indicate the spreadsheet line, the column, and a description of the error. Access the spreadsheet, correct the errors and try uploading again.
If the upload is successful, the lines that you have uploaded are listed on the Create: Lines page.
When the upload has completed, the lines that you have uploaded are listed on the Add Lines page.
You can edit or delete existing lines by selecting a line and clicking the appropriate button.
You can still enter additional lines online.
If you created the negotiation using a spreadsheet, any spreadsheet item category values take precedence over item category values defined for the negotiation template.
If you used a negotiation template, any item attributes defined to the template are added to any item attributes defined in the spreadsheet. If the same item attribute is defined in both places, the spreadsheet value takes precedence.
You can use a spreadsheet to upload item attributes and price factors.
See Defining Service-Related Lines for information on defining service-related line types.
Instead of specifying a single date/time at which the entire negotiation is closed for responding, you can choose to have the closing time staggered across negotiation lines. When using the feature, the closing time for the second line of the negotiation is later than the closing time for the first line (you specify the time of the initial close and the close elapse interval by setting response controls). Staggered closing affects independent lines, lots and groups, that is, the lines within a lot or group are closed at the same time.
When you use staggered closing, the order in which the lines appear in your negotiation is important. If you choose to use this feature, you should plan the order in which you will define your negotiation's lines/lots/groups, although you can move lines after they are defined.
If AutoExtend is in effect and is triggered for a line, the close time for succeeding lines is adjusted accordingly.
See Understanding Response Controls for directions on setting response controls.