Purchasing - Oracle EBS R12

Thursday, 4 September 2025

Supplier Life Cycle Management

https://purchasingpo.blogspot.com/2025/09/supplier-life-cycle-management.html

🔄 Supplier Lifecycle Components

👉 So the cycle looks like this:

Registration = before Prequalification

Prequalification = Entry requirements
Assessment = Ongoing qualitative review
Evaluation = Quantitative scoring
Supplier Development= to improve partners
Requalification = Renewal & continuation check
Phase-out/Disqualification = to clean the vendor base

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1. Supplier Identification & Registration

Vendor expresses interest (through supplier portal, RFP, or sourcing event).
Vendor submits basic details (company profile, tax ID, bank details).
Internal team verifies and creates the supplier record in ERP.

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2. Vendor Prequalification (Before Onboarding)

Components checked:

📑 Legal documents (Trade license, Tax registration, Chamber of Commerce)
💰 Financial health (Bank statement, audited accounts, credit ratings)
🏭 Technical capability (plant/facility info, equipment, workforce)
✅ Certifications (ISO 9001, Safety/OHSAS, Environmental ISO 14001)
📋 Past experience (client references, project history)
🚫 Risk checks (sanctions, blacklists)

3. Vendor Assessment (After Onboarding)

Components reviewed:

📦 Quality of goods/services supplied (defects, compliance with specs)
🚚 Delivery performance (on-time %, lead times, reliability)
🤝 Responsiveness & communication (support, resolving issues)
⚖️ Compliance with contracts & ethical sourcing policies
📊 Risk profile (supply disruption, financial health updates)

4. Vendor Evaluation (Part of Assessment → Quantitative)

Components scored (KPIs):

Quality (e.g., 40%) → defect rate, returns, acceptance levels
Delivery (e.g., 30%) → on-time delivery, adherence to schedule
Cost/Price (e.g., 20%) → competitiveness, cost savings
Service (e.g., 10%) → customer service, complaint handling
Innovation (optional) → suggestions for improvement, new solutions

📌 Output → Scorecards / Rankings → Preferred, Approved, Conditional, or Disqualified Vendor.

5. Supplier Development (Optional but important)

Working with underperforming but strategic suppliers to improve.

Providing feedback, training, or even joint investments.

Focused on strategic partners in long-term contracts.

🔹 Benefits of Supplier Development

🚀 Improved supplier performance (quality, delivery, cost).

🤝 Stronger buyer-supplier relationship (partnership approach).

💡 Access to innovation and new technologies.

📉 Reduced risks (fewer supply disruptions).

🏆 Long-term competitive advantage.
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6. Vendor Requalification (Periodic Review – Annual or Bi-Annual)

Components checked again:

📑 Renewal of legal docs (trade license, tax clearance, insurance)
✅ Updated certifications (ISO renewals, safety compliance)
💰 Updated financials (annual reports, credit checks)
📋 Performance history (from evaluations & assessments)
🚫 Risk re-check (legal disputes, blacklisting, sanctions)

📌 Output → Vendor continues in Approved Supplier List (ASL), or is suspended/removed.

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7. Supplier Phase-Out / Disqualification

Non-performing, high-risk, or obsolete suppliers are suspended or removed.

Only active and compliant vendors remain in the Approved Supplier List (ASL).

Tuesday, 10 May 2022

How to create invoice in AP if Pay On Receipt AutoInvoice setup is missed on supplier

https://purchasingpo.blogspot.com/2022/05/how-to-create-invoice-in-ap-if-pay-on.html

INVOICE_STATUS_CODE in the RCV_TRANSACTIONS table is kept null if Autopay setup is not present on the supplier. To Rectify the same, first do Autopay setup on supplier and then amend the INVOICE_STATUS_CODE field from null to ‘PENDING’ as below,

select l.invoice_status_code from rcv_transactions l where l.shipment_header_id = ?

INVOICE_STATUS_CODE

PENDING

Now, amend the PAY_ON_CODE field from null to 'RECEIPT' in po_headers_all table

select q.pay_on_code from po_headers_all q where q.segment1= '?'

PAY_ON_CODE

RECEIPT

Run “Pay On Receipt AutoInvoice” Program afterwards

Wednesday, 8 May 2019

The easiest way to find Approvers assigned in Position Hierarchy - Oracle EBS R12

https://purchasingpo.blogspot.com/2019/05/the-easiest-way-to-find-approvers.html

The easiest way to find Approvers assigned in Position Hierarchy

Navigate to HRMS> Work Structures> Position> Diagrammer

Press F11 and search for Position Hierarchy Name

Press Ctrl+F11

Press Open Editor

Expand

It is Showing Hierarchy from Top to Down

You can use the following styles as easy for you

How to know the position hierarchy used in a PO document - Oracle EBS R12

https://purchasingpo.blogspot.com/2019/05/how-to-know-position-hierarchy-used-in.html

Requisitions

select prh.segment1, pps.name
from po_requisition_headers_all prh, po_action_history pah, per_position_structures pps
where pah.approval_path_id = pps.position_structure_id
and prh.requisition_header_id = pah.object_id
and object_type_code = 'REQUISITION'
and action_code = 'SUBMIT'
and prh.segment1 = '&REQNUMBER'

Purchase Orders

select ph.segment1, pps.name
from po_headers_all ph, po_action_history pah, per_position_structures pps
where pah.approval_path_id = pps.position_structure_id
and ph.po_header_id = pah.object_id
and object_type_code = 'PO'
and action_code = 'SUBMIT'
and ph.segment1 = '&PONUMBER'