What is PO Module in Oracle Apps R12? A Complete Guide
Introduction
The Purchase Order (PO) Module in Oracle Apps R12 is designed to simplify procurement and purchasing operations. It allows organizations to create, approve, track, and manage purchase orders efficiently. This module is integrated with other Oracle EBS modules like Inventory, Accounts Payable, iProcurement, and Sourcing, making procurement seamless across the enterprise.
In this guide, we will explore the key features, types of purchase orders, approval process, and how the PO module works in Oracle R12.
Key Features of Oracle PO Module
|
Feature |
Description |
|
Automated PO Creation |
Converts approved requisitions into purchase orders
automatically. |
|
Approval Workflow |
Uses AME (Approval Management Engine) and
position-based approvals. |
|
Multiple PO Types |
Supports Standard, Blanket, Contract, and Planned POs. |
|
Integration with AP & INV |
Seamless connection with Accounts Payable (AP) and
Inventory (INV) for smooth processing. |
|
Supplier Management |
Enables supplier qualification, sourcing, and
negotiations. |
|
Receiving Controls |
Tracks goods received and manages returns. |
|
Price Breaks & Agreements |
Handles vendor pricing and long-term purchase agreements. |
Types of Purchase Orders in Oracle Apps R12
|
PO Type |
Purpose |
|
Standard PO |
Used for one-time purchases where the price and quantity
are fixed. |
|
Blanket Purchase Agreement |
Used for long-term agreements with suppliers where items
are purchased periodically. |
|
Contract PO |
A legal agreement with a supplier without specifying items
and quantities. |
|
Planned PO |
A PO created for future purchases, where releases are
required before ordering. |
How the Purchase Order Process Works in Oracle R12
The PO module follows a systematic process from request to final payment.
1. Requisition Creation
- Users create Purchase Requisitions to request goods or services.
- Requisitions can be created manually or through iProcurement.
2. Purchase Order Creation
- Approved requisitions are converted into Purchase Orders.
- Buyers can create POs manually or use AutoCreate functionality.
3. PO Approval Process
- PO goes through Approval Hierarchy (Position-Based) or AME (Approval Management Engine).
- Approvers receive workflow notifications and approve/reject POs.
4. Supplier Confirmation & Dispatch
- Once approved, POs are sent to suppliers via Email, Fax, or EDI.
- Suppliers acknowledge and confirm delivery timelines.
5. Goods Receipt & Inspection
- Received goods are verified against the PO in Oracle Inventory (INV).
- Quality checks are performed before accepting the delivery.
6. Invoice Matching & Payment Processing
- Invoices are matched with POs in Oracle Accounts Payable (AP).
- Once verified, payment is processed to the supplier.
Key Tables Used in Oracle PO Module
|
Table Name |
Description |
|
PO_HEADERS_ALL |
Stores Purchase Order headers. |
|
PO_LINES_ALL |
Stores PO line details (items, quantity, price). |
|
PO_DISTRIBUTIONS_ALL |
Stores charge account details. |
|
PO_VENDORS |
Stores supplier information. |
|
PO_ACTION_HISTORY |
Tracks approval and status changes. |
