Wednesday, February 6, 2008

Supply Base - Primer

Entering and maintaining supplier information is vital for your Purchasing and Payables functions. Supplier information appears on requisitions, RFQs, Quotations, Purchase Order, Receipts, Returns and Payments.

While users can maintain certain information at Supplier level, Oracle also offers to override these defaults and assign each supplier site a different criteria based on the business needs. Users have the ability to identify the terms and conditions, purchasing details and payment information for each supplier site. User can decide to which site or sites the invoices and purchase orders are sent. In addition, user can designate a site to receive only requests for quotes.

Oracle defaults certain values picking them from already set options. However user can override them by providing a different set of default values. For example, user might set certain default payment terms at Payables options level, however user can change this at supplier level. Oracle follows the following defaulting of values (first valuet being the highest proirity, last value being the lowest priority)

1. PO Document
2. Item
3. Supplier Site
4. Supplier
5. Purchasing/Receiving/Payables options
6. Financials options

For every supplier, user can create an unlimited number of supplier sites with different addresses and contacts. You can buy from several different sites while sending the payments to only one site. For each supplier site, enter contact information (name, address, telephone) specific to that site.

User can assign types to each supplier to categorize and report on subsets of suppliers. The One-Time check box should be selected when a supplier is established with whom users don’t expect to do repeat business. Payment terms entered at supplier level is used by the system to automatically calculate due dates, discount dates, and discount amounts for each invoice in order to schedule payments. Use the Bank Accounts region to specify the supplier's bank accounts to which your bank will remit electronic payments.

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