1. The information in this document/presentation is the confidential information and trade secret of ATCO I-Tek and may not be disclosed to any person without the prior written permission of an authorized representative of ATCO I-Tek. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing in Oracle Purchasing Presented to OAUG February 25 th, 2010

2. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing Overview This presentation will review:  Benefits of Commodity Sourcing in Oracle  Process Considerations  Set up of Commodity Sourcing  Creation of Requisitions using Commodity Sourcing

3. © 2010 ATCO I-Tek Inc. All Rights Reserved Benefits of Commodity Sourcing  Common and frequently used services can be automatically sourced  Multiple suppliers can be used  same type of service  different rates  Does not require Oracle Inventory  Does not require an Item Master  Process is similar to item sourcing

4. © 2010 ATCO I-Tek Inc. All Rights Reserved Process Considerations  Commodity sourcing for services requires a unique category established for each and every commodity you wish to source  The line description of the Commodity on the purchase requisition must exactly match the line description on the Blanket Purchase Order  Item sourcing take precedence over Commodity sourcing

5. © 2010 ATCO I-Tek Inc. All Rights Reserved Setting Up Commodity Sourcing  First create new categories specifically for commodity service sourcing  Commodity service categories must be unique  Ensure that the commodity category is NOT currently being used by any purchase item

6. © 2010 ATCO I-Tek Inc. All Rights Reserved Setting Up Commodity Sourcing  Create a Blanket Purchase Order for the services/commodities using the new category

7. © 2010 ATCO I-Tek Inc. All Rights Reserved Setting Up Commodity Sourcing  Set up a sourcing rule for the specific commodity

8. © 2010 ATCO I-Tek Inc. All Rights Reserved Setting Up Commodity Sourcing  Assign the sourcing rule to the category

9. © 2010 ATCO I-Tek Inc. All Rights Reserved Setting Up Commodity Sourcing  Set up the Approved Supplier List for the commodity

10. © 2010 ATCO I-Tek Inc. All Rights Reserved Setting Up Commodity Sourcing  From the Approved Supplier List, via the Supplier Attributes button, set up one Supplier Item Attribute line for each unique Blanket Purchase Order

11. © 2010 ATCO I-Tek Inc. All Rights Reserved Setting Up Commodity Sourcing  If more than one category is required on the Purchase Order, you must set up the Approved Supplier List for each category  Additional suppliers can be added to that category on the Approved Supplier List providing a unique Blanket Purchase Order is set up for each supplier

12. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - iProcurement  In Oracle iProcurement select the Advanced Search option

13. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - iProcurement  Search for the Supplier Name and select Go  Can search on category, but must also search on one of the top 3 fields

14. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - iProcurement  A list of the relevant Blanket Purchase Order lines is displayed

15. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - iProcurement  Confirm the Contract Number Field on the iProcurement screen – the Contract Number represents the Purchase Order number

16. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - iProcurement  Select all required lines you wish to request  Complete and submit the requisition for approval  Run the Oracle ‘Create Releases’ concurrent request  Run the ‘Workflow Background Process’ request

17. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - iProcurement Depending on the Release Method selected on the Approved Supplier list, one of the following will occur:  Requisition is waiting in Autocreate to be processed onto a Purchase Order, or  Purchase Order is Incomplete waiting for submission to be approved, or  Requisition should now be sourced and available on a Purchase Order release

18. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing  In Oracle, navigate to Requisitions > Requisitions screen to create a Requisition  Select Purchase Requisition for the Type

19. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing  Place the cursor anywhere on the first line of the requisition

20. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing  Select the Catalog button

21. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing  On the ‘Search Supplier Item Catalog’ form there are various ways to find the commodity you wish to source  Select the Clear button to refresh the search options – this clears out any defaulted entries

22. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing  Enter one or more of the following on the Search Supplier Item Catalog form:  In the Commodity field, enter the category to be sourced  Enter the supplier name in the Supplier Field  Upon completion, select the Find button

23. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing

24. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing  Select the ‘Negotiated Sources’ tab  TIP: The Profile option: ‘PO: Default Supplier Item Catalog Option’ controls which tab opens by default. The lines displayed are the sourced blanket line items for that supplier

25. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing  Select a line and select the Add button. This puts a line entry on the bottom half of the screen – repeat as required until all desired lines are added to the requisition

26. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing  When all required lines have been added, choose the Select button to return to the requisition screen

27. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing  Once back on the Requisition creation screen, continue to create the requisition

28. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing  Complete and approve the requisition as per normal business process  Run the Oracle ‘Create Releases’ concurrent request  Run the ‘Workflow Background Process’ request

29. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing - Core Purchasing Depending on the Release Method selected on the Approved Supplier list, one of the following will occur:  Requisition is waiting in Autocreate to be processed onto a Purchase Order, or  Purchase Order is Incomplete waiting for submission to be approved, or  Requisition should now be sourced and available on a Purchase Order release

30. © 2010 ATCO I-Tek Inc. All Rights Reserved Trouble shooting There are some common reasons why commodity sourcing is unsuccessful:  End Effective Date on the Blanket Purchase Order is expired  Start Effective date on the Approved Supplier List is future dated  Line description does not EXACTLY match the line description on the corresponding Blanket Purchase Order  Create Releases or Workflow Background Process did not run or did not complete successfully

31. © 2010 ATCO I-Tek Inc. All Rights Reserved Commodity Sourcing Questions? Dawn-Marie Lotz ATCO I-Tek Oracle Functional Analsyt (780)420-3406 dawn-marie.lotz@atcoitek.com