Standard Purchase Order Creation



Purchase Order is a legal document to buy goods/services from a Supplier. Every business have a Sourcing/Materials/Purchasing department whose responsibility is to create purchase order and communicate to Supplier.

In Oracle Purchase Orders are of four types
– Standard Purchase Order
– Blanket Purchase Order
– Contract Purchase Order
– Planned Purchase Order

In this article we will learn about standard purchase order. Purchase Order can be created in multiple ways:
– Manually create Purchase Order
– Copy from an existing purchase order
– Auto create from purchase requisition
– Auto create from MRP/Min-max/Re-order Planning

Lets learn about how to create standard purchase order manually.

Navigate to Purchasing responsibility –> Purchase Orders –> Purchase Orders.

1 ) Select the Operating Unit – This is a new feature in R12. Till 11.5.10 based on which operating unit(OU) you are in PO is created in that OU. To change to different OU, you need to change responsibility.
2 ) Select Supplier
3 ) Select Supplier Site on which PO is created. This will be useful if Supplier has multiple branches/entities. Supplier sites are always OU specific. Based on which OU you are creating PO you see only supplier sites created in the OU.
4 ) Select Purchase Order type – In this case ‘Standard PO’
5 ) Select the ship-to-site where the supplier should deliver the goods
6 ) Select the bill-to-site where the supplier should send AP invoice.
7 ) Select the Buyer. Usually the person who creates the PO. You need to be defined as Buyer to be able to create PO.

Navigate to Purchase Order lines to enter line information
1 ) Enter Line number
2 ) Select line type i.e. ‘goods’ or ‘services’ or any value defined by you.
3 ) Enter Item or service you want to buy.
4 ) Select the Item revision
5 ) Enter the PO quantity
6 ) List price will be defaulted, you can override the price.
7 ) Enter the promise date if buyer already gave the date he commited to deliver.
8 ) Enter the need-by-date when you would like the goods at your premises.
9 ) Enter the Supplier Item number if you know any for supplier to understand what his item/catalog you are buying.
10) Modify other default information in other tabs.
11) If PO is created on a foreign currency
12) Click on ‘Terms’ to set the payment terms, freight, carrier, FOB information.
Enter additional instructions to Supplier and Receiver.
13) Click on save to generate the Purchase Order Number.

Click on ‘Shipments’ for additional shipment level information updates.

1) Set the receiving tolerance, receipt routing, invoice matching, receiving controls.

Click on ‘Distributions’ for updating distribution information

At this moment you have updated the default information to your needs. Now you are ready for submitting the PO for approval.

Click on ‘Approve’
1 ) Check ‘submit for approval’ if you would like to submit for approval.
2 ) Check ‘forward’ if you would like someone to review and approve on your behalf.
3 ) You select the communication methods like whether to print / e-mail /fax or transmit through EDI. You might need additional setups for each of this communication method to work.

Click ‘OK’ to launch approval process. PO approval is dependent on how you configured the approval limits and groups. If you have those approval limits you will see PO status changes to ‘Approved’ otherwise it goes to the next level within your approval group for necessary approvals.

18 responses to Standard Purchase Order Creation

  1. This post is very nice, Because your post is giving very nice information. So we are very thankful to you.

  2. it is good ,,,,,,,,,,

  3. Very Good Intro & Explanation.
    I want to know the posibility of Copying selected lines from a PO using the Copy DOcument functionality.
    Can anyone help me.

  4. You can copy all lines and delete the selected lines after copying. You can’t copy just selected lines.

  5. Can I record a neagative amount to track a purchase prepayment item on the PO?

  6. Very Nice… it’s realy enhancing knowledge.

  7. Very good nice and simple article. Thank you for posting

  8. The article is very simple and precised. It gives you hands on what exactly PO is and how the same be created. Thanks for the beautiful article.

  9. I have created a PO, but after clicking ok on the approve form it is not getting approved.Please help.Is the approver group is connected to the requester?

  10. There are many setup to be done to make requestor able to approve the PO.
    Requestor must have a job or position associated.
    Job/Position must have approval group setup
    Approval groups must have approval limits based on PO document type
    There must be a hierarchy of job/positions
    Requestor can approve check box must be checked.

  11. Can you upload a video which explains the creation of a buyer for creating a PO ?

  12. Will do definitely.

  13. when u open po form by default it will display standard po instead of i want to display blanket po what is the process
    i done form personalization but it is not working what are the steps please can u send the answer to my gmail id
    k8884820367@gmail.com

  14. Just like SALES ORDER SERIES can be defined seperately based on the various types, why Purcahse order series cannot be defined seperately based on various types??
    It becomes practically impossible to idenitfy the mtl based on the PO TYPE as this is having a single serial number.

  15. Is there a 999 line limitation on the Number of Line in a PO? User unable to add line# 1,000

  16. Need a training video where it shows the reception of goods against a PO, and how to print a goods receipt.

    Thanks

  17. its helpfull sir but how do we get a purchase order number in this exercise?

  18. Hi. please help. upon approving a PO i created it gives an error message “Your budgetary control action completed with exceptions”

    NB: the budgetary control (funds check level) is in advisory level.

    I would really appreciate your immediate reply as this is urgent. Thank you.

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