Oracle Purchasing provides you with the features you need to order both goods and services. To satisfy the special needs of buyers procuring services, Oracle Purchasing provides the functionality described here. In addition, you may want to consider implementing Oracle Services Procurement.

Purchasing Services Step by Step

Creating Requisitions for Services

Oracle Purchasing lets you create requisition lines for services and other amount based orders. The fixed price based and rate based line types are specifically designed for procuring services.

Amount Based: When you choose an amount based line type, Purchasing automatically sets the unit price to 1 for your line and enters the default unit of measure for the line type. You cannot change the unit price or unit of measure for amount-based requisition lines. You enter the amount of the service in the Quantity field. Your total line amount is the same as the value displayed in the quantity field. You can use the quantity field in your distributions to allocate the order amount to multiple accounting flexfields.

Fixed Price Based: If Oracle Services Procurement is implemented, you can use fixed price service line type is for general business services where the purchase and invoice are based on a dollar amount of service. Once defined, you need only enter the amount to complete a fixed price requisition line.

Rate Based: If Oracle Services Procurement and Oracle iProcurement are implemented, you can create a rate based requisition line for contingent labor where you are billed a per unit rate such as hourly. This line type also enables you to capture agreed rates for price differentials such as an overtime rate or holiday rate.

Creating Purchase Orders for Services

You can use AutoCreate Purchase Orders to create purchase order lines and releases from approved requisitions. You can gather all requisition lines for services and review these lines before placing specific ones on purchase orders. For amount based lines you can also split a requisition line for a service into several requisition lines for goods and services. Purchasing creates a purchase order for all of the requisition lines you choose.

You can also enter purchase orders for services manually by entering a service line type and the appropriate information for that line type.

If Oracle Services Procurement is implemented, the services line may require that you enter a job, price differentials, and details in the Temporary Labor tabbed region

Sourcing Services

When you request a quotation from a supplier for a particular service, you can provide a complete description of the service you are requesting. You must choose a quotation type of Catalog if you want to use it for sourcing.

When you choose sourcing information for amount-based requisition and purchase order lines, Purchasing copies the total amount from your chosen quotation shipment into the Quantity field of your purchasing document. Since you are creating an amount-based line and the unit price is set to 1, the Quantity field displays the total amount for the line.

Receiving Services

You receive services the same way you receive goods. When you receive a service, your quantity fields reflect the amounts of your order. Simply specify the amount you receive, correct, or return in the Quantity fields. Oracle Purchasing displays your line type so you can determine whether you are receiving by amount or quantity. You must receive services and other amount-based purchases in the unit of measure specified on the purchase order.

Matching Service Purchase Orders

When matching payables invoices to a service purchase order or receipt lines, you match based on the amount. For amount based lines, Oracle Accounts Payable defaults the unit price to 1 when matching. You should not change the unit price.