Thursday, 12 February 2015

Price Tolerance Percentage and Price Tolerance Amount Functionality in Purchase Orders - R12.2


Understanding the Price Tolerance Amount functionality in Oracle Purchasing.

Exercise 1: Price Tolerance (%) options in Purchasing.

Step 1: Raise a requisition for an item (Test 123) with price as 100.

Responsibility: Purchasing.
Navigation: Requisitions >Requisitions.

Approve the Requisition.

Step 2: Auto Create the Requisition into Purchase Order.
Navigation: AutoCreate.
Select the Requisition line by checking the box and click on Automatic option at the bottom and say OK.
Now the PO will be auto created as below.
Now try to change the line price (Say 120 here from 100) and approve.
We will get an error message saying as “Price does not fall within tolerance.”
Step 3: Check Purchasing Options.
Navigation: Setup >Organizations >Purchasing Options.
Note that we have price tolerance of 10% and Enforce Price tolerance is checked.
“This is the percentage by which the Autocreated purchase order line price cannot exceed the requisition line price. If you select Enforce Price Tolerance, you can create, but not approve, purchase orders for which this tolerance is exceeded. There is no restriction on how much a price can decrease.”
Now Make the both fields blank as below and save.
Now you will be able to approve the PO, no matter how much is the price.
Exercise 2: Price Tolerance (%) options at Item levels.

Make the Price tolerance at purchasing level as below.
Now create a requisition with price as 100.
Auto Create the Requisition line into PO.
Try to change the price in the Purchase order as 105 as it falls within the tolerance and try approving.
System throws the below error message again.
To overcome the error, Go To Organization Items and query the Item.
Check the Price tolerance % and make it to null as below and save.
Now if you try to approve the system still throws the error again.
Go to master Item form and query the Item and make sure the tolerance is cleared and save.
You can now able to approve the Purchase Order.
There are 3 levels of check for the above functional error to look out for:
  • Purchasing Options.
  • Organization Item level.
  • Master Item level.

Exercise 3: Exercise on Price Tolerance Amount.

Follow the same process of creating a requisition and auto create with 100 as its price as in the above exercises.

Change the price to 175 and try to approve the purchase order.
The system throws a error saying Total amount does not fall within amount tolerance”.
Now look into the Purchasing Options and there is a tolerance of 50 given in the Price tolerance amount field and that’s the reason the system is giving error as we have exceeded the tolerance.
Because earlier the PO Total Amount was 200 and now that has been changed to 350 which is above 50, means we can only change the amount with in 50 as per the tolerance we have given.
Now clear the tolerance amount and uncheck the enforce button and save.
Now you can be able to approve the purchase Order.

Wednesday, 11 February 2015

Order Management Under Shipment Tolerance functionality while splitting the order lines in R12.2

Remained Order Line gets cancelled after we split the Order line in shipping tranasaction form and ship the line.

This document makes you understand the under shipment tolerance functionality while we split the order for ship confirm in shipping transaction form.

If we have define the Tolerance and performs Over/Under, system will not Retain the Unstaged quantity, rather it will cancel the remaining Unstaged quantity (as long as Over/Under tolerance fulfilled).

So let us see the under shipment functionality in the below exercise:
Step 1: Create a sales order.
Responsibility: Order Management Super User.
Navigation: Orders, Returns > Sales Orders.
Create the order for 100 quantity and book the order.
Come to Shipping tab and we can find the Under-ship tolerance will be 25% default.
The Tolerance is picking as 25% on the above screen as the tolerance is given under the profile option as below.

Step 2: Split the Order.
Split the Order in the shipping transaction form. Right click on the line and select spilt, the below box appears. Give quantity split to 75 and say OK.
Now if we observe the line has been split to 75 and other line for 25 quantities.
Come to second line with 75 quantity and right click and say Launch Pick release, means we are just releasing the second line of 75 quantity.
We can see the Pick slip report which says 75 quantities has been picked.
Now perform the Ship Confirm process for the same line. Note the delivery number has been created only for the picked line.
Run the Work flow background Process report.
Now if we check the shipping transaction form, the line has been shipped and interfaced and the other line got cancelled. (See the line status).
The Order line status in sales order form will be closed with 75 Qty Shipped.
This functionality is because we have set the under ship tolerance is 25% and our ordered quantity is 100, if you ship 75 or more, the order line is considered to be fulfilled. The system will automatically close the line and cancel all the related Back ordered line.

However, this shipment tolerance values can be overridden at Customer, Bill To or Item level as given in the below screen shots.
1. Customer and customer Bill to level.
2. Item Level ----------- Order Management tab > Tolerances.

Updating Unit List Price in Blanket Sales Agreement in R12.2

Updating Unit List Price in Blanket Sales Agreement

Exercise 1: Firstly we will try to create a Blanket Sales Agreement.
Responsibility: Order management Super User.
Navigation: Sales Agreements > Sales Agreement.

Come to pricing tab in BSA Header and give the price list.

Go to line level and try to give Unit List Price. System will not allow you to enter and says” This field is protected against update”.

Usually when we try to create a BSA with the Global Price list, system will not allow us to edit the Unit List price in the line level.


Exercise 2: So we will now find out the possible way to get the price updatable.

Create a Sales Agreement.

Give the customer name and agreement type.

Make sure the Price List is not given in the Pricing tab in BSA header.

Come to Line level and give the Item and click on Price List Setup button in the bottom.

Now the system will be redirected to Advanced Pricing Module as below.

Note the Global field will be unchecked and we can find the operating unit next to that, means the price list what we are creating is not global and limited to our operating unit.

Now come to line level and try to update the unit price and you can now able to update as below.

Now you can go ahead and submit the draft and get approved from the customer and the Blanket Sales Agreement is now active and you can release the orders.

Important Notes:

  • The new Price list created against the BSA would be applicable only for that particular BSA.

  • If you try to add line items even with different items to the existing BPA and create new price list, system will not allow creating another price list. You can only use the existing Price list for particular BSA.

  • Once you save the BSA, we cannot even edit the Unit List Price again for the same item, it will be grayed out.

  • The Price created for the BSA cannot be used to any other purpose say even for sales order as it is for that particular BSA and not Global price list.