This section discusses setting up Oracle Services Procurement. Oracle Services Procurement enables a streamlined process for sourcing, procuring and managing of services, including contingent labor, facilities management, marketing, information technology, and consulting services. These commodity areas usually account for a large percentage of an organization's spend. Oracle Services Procurement and Oracle Purchasing enable key business functions in the services procurement flow:

• Preferred supplier identification and management

• Long term agreements for fixed price and rate based services

• Purchase order management

• Time card management and payment request authorizations

• Invoice generation and payment

   Services Procurement Setup Step by Step:

The following setup steps are needed to implement Oracle Services Procurement in Oracle Purchasing.

1. Install Oracle Services Procurement and the latest Oracle Applications Financials family pack. (Required)

2. Set profile PO: Enable Services Procurement to Yes. (Required) See: Purchasing Profile Options.

3. Define services procurement related jobs in Human Resources. (Required) See: Representing Jobs and Positions.

4. Define Job and Category Association. (Required) See: Define Job and Category Association.

5. Enable Oracle Time & Labor for time cards:

   • Install and configure Oracle Time & Labor. (Optional)

   • Create contractors for services procurement in Oracle Human Resources. (Optional) See: Entering a New Person.

6. Set profile PO: UOM Class for Temp Labor Services. (Required) See: Purchasing Profile Options.

7. Define Price Differential lookup codes. (Required)

   This step involves the following tasks:

   1. Using the Application Developer responsibility, navigate to the Application Object Library Lookups window.

   2. Enter PRICE DIFFERENTIALS for the lookup Type.

   3. Enter Price Differentials for the lookup Meaning.

   4. Enter Oracle Purchasing for the lookup Application.

   5. Define your rate price differential lookup. Refer to the online help for details.

      Note: Seeded lookup codes STANDARD and FIXED PRICE are not available for use.

8. Define line types for temp labor purchase basis. (Required) See: Defining Line Types.

9. Set system option profiles for notifications (Optional):

   • PO: Amount Billed Threshold Percentage

   • PO: Contractor Assignment Completion Warning Delay

     See: Purchasing Profile Options.

10. Consider scheduling the Retrieve Time and Labor from OTL process. (Optional) See: Retrieve Time from Oracle Time & Labor (OTL).