What is PO Module in Oracle Apps R12

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.





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