Purchase Order (PO) Module Guide

A Complete Guide to the Oracle Apps R12 PO Module.

Introduction to the PO Module

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.

Key Features of Oracle PO Module

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.

Types of Purchase Orders

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

Requisition Creation

Users create Purchase Requisitions to request goods or services. Requisitions can be created manually or through iProcurement.

Purchase Order Creation

Approved requisitions are converted into Purchase Orders. Buyers can create POs manually or use AutoCreate functionality.

PO Approval Process

PO goes through Approval Hierarchy (Position-Based) or AME (Approval Management Engine). Approvers receive workflow notifications and approve/reject POs.

Supplier Confirmation & Dispatch

Once approved, POs are sent to suppliers via Email, Fax, or EDI. Suppliers acknowledge and confirm delivery timelines.

Goods Receipt & Inspection

Received goods are verified against the PO in Oracle Inventory (INV). Quality checks are performed before accepting the delivery.

Invoice Matching & Payment

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.