Use the Line Types window to define and update line types.

When you enter a line on a purchasing document and choose a line type, Purchasing automatically displays the default information that you define here for the line type.

Line types let you distinguish their value basis between quantity and amount based line items. You use quantity based line items when you know the quantity and price of the line you are ordering. For example, you might buy a dozen pens for $10. You use amount based line items when you are ordering a service.

If Oracle Services Procurement is implemented, fixed price and rate value based line types are also possible. You use fixed price based line items when you are ordering a service with a set fee. You use rate based line types when you are ordering services on a fee per unit basis. For example, you might order consulting services at $250 per hour.

You can create line types to reflect different characteristics for the items you purchase. For example, you may want to define one line type for items you order by quantity and unit price, another line type for services you order by hour, and yet another that indicates an outside processing operation used in Oracle Work In Process (WIP). You can create purchasing document lines and specify whether they are for goods, services, outside processing, or any other line type you define.

You can further refine the definition of your line type by specifying a purchase basis for a line type. You can choose a purchase basis of goods or services. If Oracle Services Procurement is implemented, you can also choose temp (temporary) labor. Value basis, discussed above, reflects how you wish to value the purchase. For example, quantity, amount, or rate. Purchase basis indicates the nature of the purchase and determines the attributes that are required, as well as the associated business flows downstream.

Outside processing line types are necessary when you are using WIP and want to enter purchasing documents for outside processing operations in WIP. When you choose an outside processing line type on a purchasing document line, you can enter only outside processing items and the destination type can be only Shop Floor.

Purchasing automatically provides you with a line type of Goods that is quantity based. If Work in Process is installed, Purchasing also provides you with an Outside Processing line type. You can set up your purchasing options to copy a default line type for lines you add to every requisition, purchase order, RFQ, or quotation document. You can override the default line type for each document line you create.

If you use Multilingual Support (MLS), translations can be entered for the line types from within each of your installed languages. To enter the translations for the line types, select Translations from the View menu. For more information on MLS, see the Oracle Applications User's Guide.

• Define categories. See: Defining Categories.

• Define units of measure. See: Defining Units of Measure.

To define line types

1. Navigate to the Line Types window.

2. If you are defining a new line type click Create. To enter changes to an existing line type use the Search region to enter the Name or the Description. Once you have completed one or all of these fields click Go. Enter your changes by clicking the Update icon for your line type.

3. Enter the Name and Description of the line type.

4. Enter the Value Basis for the line type.

   Amount: Receive items by amount. You cannot change the unit of measure and unit price on purchasing document lines.

   Fixed Price: If Oracle Services Procurement is implemented, enter services by amount only. Receive items by amount. You cannot change the unit of measure and unit price on purchasing document lines.

   Quantity: Receive items by quantity. Outside Processing line types must have this value basis.

   Rate: If Oracle Services Procurement is implemented, enter services by rate (price) and amount. Receive items by amount.

   Attention: You can not change line type attributes after transactions have been created for that line type.

5. Enter the Purchase Basis for the line type.

   Goods: For quantity value based line types.

   Services: For amount and fixed price based line types.

   Temp Labor: If Oracle Services Procurement is implemented, for fixed price and rate based line types.

6. Enter the End Date on which the line type is no longer usable.

7. Select Outside Processing to restrict this line type to purchasing outside processing. Also, when you use an outside processing line type on a purchasing document, your choices for the item are limited to outside processing items. You can select this check box only if the value basis is Quantity and if you are using Work in Process.

8. Enter the default purchasing Category for items with this line type. You can override this purchasing category on purchasing document lines.

9. Select Receipt Required if you want this as the default on your purchasing document shipments with this line type. You can overrule the default when you enter the shipment.

10. Enter the default Unit of measure for items with this line type. You must enter a default unit when you use the Amount value basis for your line type. You can override this unit of measure on your purchasing document lines only when you use non-Outside Processing line types with Quantity value basis.

    If you use the Amount value basis, you may want to choose your functional currency as the unit of measure. For example, if your functional currency is US dollars, you may want to define a unit of measure USD that you can use for your line types with the Amount value basis.

    If Oracle Services Procurement is implemented, line types with a rate value basis the unit of measure class can be restricted by the setting of the profile PO: UOM Class for Temp Labor Service.

11. Enter the default Unit Price for items with this line type. Purchasing automatically enters a unit price of 1 when you use the Amount value basis and prevents you from updating this price when you create your line type. You can override this unit price on your purchasing document lines only when you use line types with Quantity value basis.

12. Click Save.