1. Oracle Services Procurement
Source
Requisition
Purchase
Receive
Settle
Service Providers
Requestor
Delivery & Performance Management
Centralized Information
Standardized Templates
Supplier Collaboration
Approved suppliers
Global agreements and contracts
Approved terms and conditions
Certifications and competencies
Real-time performance
Service request
Supplier request
Contract
Respond to RFx / bid
View POs & time cards
Monitor performance
Secure Access
Most of you are probably already familiar with iprocurement. It is the self service requisition application, and part of the advanced procurement suite.
iProcurement offers a number of great benefits to the enterprises and their users. Today, I’ll like to highlight three of them and use them to frame the discussion. First off, streamline requester ordering process. Second, enforce spending policies consistently and effectively across the organization. And finally, slash procurement cost via lower processing cost and reduce cycle time.
Streamline requester order process. In the last two releases, from a technology platform perspective, we have moved on to oracle applications framework platform to take advantage of many of its capabilities and personalization tools. As part of the conversion process, we have redesigned the user interface and added many usability enhancements along the way.
Human Resources
Projects
Financials
Recruit candidates
Enter and share contractor performance
Onboard candidates
Manage resources
Track expenses
Plan and budget
Reconcile and pay
Manage compliance

2. Procurement for Complex Services Description
An integrated solution to automate acquisition of complex services
Complex Services Procurement is characterized by:
High dollar value projects
Long lead time delivery schedules
Progress payments based on work completion
Contract Financing
Commodities of Interest
Professional Services
Engineering Services
Construction Services
So what is Procurement for Complex Services? It is an integrated solution for services procurement used to model complex work contracts that involve advanced payment terms.
These contracts tend to have high dollar values, often running into several millions of dollars. They also tend to be long lead time contracts, sometimes extending over multiple years. These contracts are characterized by progress payments that are governed by the advanced payment terms, and which are released based on completion of work. Additionally, complex work contracts can also have provisions for Contract Financing.
Some of the commodities we have targeted with this solution are Professional Services, and Engineering and Construction Services.

3. Procurement for Complex Services High Level Business Flow
Request for Service
Source
Author Contract
Advance Payment
Track Progress
Process Payment
Requests for Services can originate from multiple sources
Facilities Manager
Project Manager
Field Engineer
Architect
Now we’ll talk about the high level business flow for the procurement of complex services that this solution addresses.
Procurement for complex services often starts off from a request for services, and this can originate from one of several sources – Project Managers in charge of a construction project, engineers in the field, or even architects.

4. Procurement for Complex Services Service Request from a Project
1) Project Manager selects appropriate Project from Project List
2) Select Workplan Tab, Task, Deliverables SubTab
PLACE HOLDER FOR PROJECTS SLIDES
4) Apply and Create Procurement Action
For Project-centric customers, a project may encompass a group of tasks that could be very small or very complex.
With Complex Services Procurement, Project Managers can initiate a purchase requisition for complex work from within Projects. This requisition then drives the rest of the complex services procurement process … from requisition, through an RFQ, to Purchase Order, progress updates, payments, and finally completion of actual work against the project.
Since projects may be very complex, a project may have several complex services procurement requisitions against it. In this example, the project encompasses a complete site renovation. Only one portion of that, the Parking Lot, requires purchase of subcontractor work at this time.
The Project Manager, selects the specific Project from the Project Homepage.
Selecting the Workplan tab, displays a work-breakdown structure for the project. For this example, the parking lot renovation has been associated with Task 1.1 of the WBS. After selecting and displaying the particular task, the Project Manager selects the Deliverables sub-tab and enters basic deliverable information.
At this time, the Project Manager has not specified Procurement Details.
This is done in the deliverables actions by selecting “Apply and Create Action”.
3) Enter Deliverable Information

5. Procurement for Complex Services Service Request from a Project
1) Define Action with Function : Procurement
The Project Manager now defines the specific actions that make up this deliverable. In this case, the Project Manager defines an action for Complex Work Procurement with a Function of : Procurement.
After entering basic procurement / requisition information such as Task, Supplier (if known), and quantity, the action can be marked as “Ready to Procure”.
At this point, the Project Manager “Initiates Procurement”. This results in Oracle Projects creating a record in the Purchasing open-interface tables. By running the Requisition Import process from Purchasing, a Requisition is created with the basic information from this deliverable action.
Once the Requisition is created, the buyer can modify information appropriately, start the RFQ process, and eventually create a purchase order, which carries a reference to the originating requisition.
Since projects may be very complex, a project may have several complex service procurement requisitions against it. In this example, the project encompasses a complete site renovation. Only one portion of that, the Parking Lot, requires purchase of subcontractor work at this time.
3) Send to Procurement
2) Enter Basic Requisition Details

6. Procurement for Complex Services Service Request from a Project
Requisition Details sent to Purchasing.
Links to created Requisitions, Purchase Orders, and Receipts.
As mentioned previously, a single project may have several complex service procurement actions in progress at any point in time.
A Project Manager has quick references to the various documents from the deliverables actions page. Links to drill down to the created requisition and purchase order are displayed for each procurement action.

7. Procurement for Complex Services High Level Business Flow
Request for Service
Source
Author Contract
Advance Payment
Track Progress
Process Payment
Invite Suppliers to Sourcing Event
Negotiate with Suppliers on
Complex Payment Terms
Progress Payment Schedule
Clauses & Deliverables
If the Service Requests have high dollar values, and involve services that require longer lead times to be fulfilled, buying organizations can determine that fulfilling the request will need sourcing & negotiation activity and ultimately a contract with complex payment terms.
Sourcing professionals then create a sourcing event and invite bids from multiple suppliers. Since these contracts can be complex, the entire sourcing process may involve multiple rounds of negotiation on various aspects of the contract ….. such as the payment terms of the contract….. whether there would be provisions for contract financing or advances, and how high the recoupment rate and the retainage rate should be, etc.
Another key aspect that is negotiated is the Progress Payment Schedule, its structure, how the work will be performed, and the amount associated with each pay item.
And finally, the Buyer and the Contractor also negotiate on applicable Clauses and also on Deliverables such as lien wavers, insurance certificates and their due dates.

8. Complex Contract Payments Negotiation Process – Negotiate & Source
Oracle Sourcing provides the capability to negotiate on
Contract Financing Terms
Advances
Recoupment Rate
Progress Payment Rate
Retainage terms such as
Retainage Rate
Maximum Retainage Amount
Progress Payment Schedule
Structure
Payment Amount
Oracle Sourcing enables organizations to negotiate using the RFQ & Quote process, on contract financing terms such as Advances, Recoupment Rate, and the Progress Payment Rate. The ability to negotiate on all of these terms can be dictated by the buying organization –the buyer can decide whether the contractor will have to comply with the specified terms or whether the contractor can propose a different, more agreeable set of terms.
Likewise, on the Progress Payment Schedule, buyers decide whether they want to allow suppliers to negotiate on the structure of the schedule and the payments, or they can dictate the structure and allow the supplier to only negotiate on the payment amount.
After negotiations are complete, a specific party is awarded the contract. The Contract is created in Oracle Purchasing seamlessly from the sourcing event. All negotiated terms, and the progress payment schedule are passed on and captured on the contract.

9. Procurement for Complex Services Process – Create RFQ
Demand Workbench
Specify Outcome Document
Specify Negotiation Style to be used
Let us now continue with our construction example …………….
The screenshot shows that the buyer has received a request for renovation work on a parking lot at one of their facilities. This requisition appears on the buyers Demand Workbench. The buyer decides to disposition this requisition by creating a RFQ in Oracle Sourcing to obtain bids on this construction project. Once added to the Document Builder on the screen, they can click Create to create a draft Sourcing RFQ.
I would like to draw your attention to the Outcome field. This field specifies the document style associated with the outcome document, which in this case is a Purchase Order. By specifying that the Outcome Style is ‘Facilities Renovation Contract’, what we are in effect telling the application is that when the RFQ is awarded to the desired contractor, a ‘Facilities Renovation Contract’ will be created in Oracle Purchasing. Moreover, this contract will have all of the functionality associated with this style.
The advantage in specifying this style upfront, before the negotiation happens, on the Document Builder is that it allows negotiation only within the framework of functionality that has been setup on the Style…………….. in our example this means that the buyer can choose to allow negotiation on Advances, Retainage, and Progress Payments, all of which are supported on the ‘Facilities Renovation Contract’ style. However, since Progress Payments are not treated as Contract Financing on the Style, no negotiation can happen on that.

10. Procurement for Complex Services Process – Create RFQ
Allow suppliers to modify / propose Pay Items
Allow Suppliers to negotiate on Complex Payment Terms

11. Procurement for Complex Services Process – Create RFQ
Specify Retainage Terms
Specify default Pay Item Owner
Define Progress Payment Schedule
Specify Financing Terms

12. Procurement for Complex Services Process - Quote
Supplier can negotiate on Financing and Retainage Terms
Supplier can negotiate on Financing and Retainage Terms
Supplier can propose a modified Progress Payment Schedule

13. Procurement for Complex Services Process – RFQ Analysis

14. Procurement for Complex Services Process – Create PO from RFQ
PO is Created

15. Procurement for Complex Services
Project Attributes for Pay Items
Notes and Attachments
Sourcing Template
Project Attributes
Pay Item level notes and attachment

16. Procurement for Complex Services
Navigation to Import Pay Items
Spreadsheet Upload

17. Procurement for Complex Services High Level Business Flow
Request for Service
Source
Author Contract
Advance Payment
Track Progress
Process Payment
Award Contract to best Supplier
Supplier and Contracting Officer sign off on Contract

18. Procurement for Complex Services Process – Create “Service Contract”
Demand Workbench

19. Procurement for Complex Services Process – Author Contract Header
Document Style name used on Purchase Order
Clauses and Deliverables can be added

20. Procurement for Complex Services Process – Author Contract Line
PO Line with information from Negotiation

21. Procurement for Complex Services Process – Author Contract Line
Define Scope of Work
Retainage Terms:
Max. Retainage Amount
Retainage Rate
Financing Terms:
Advance Amount
Recoupment Rate
Associate Project, Task, Expenditure
Attach Scope of Work as a document

22. Procurement for Complex Services Process – Author Progress Payment Schedule
Define Progress Payment Schedule
Specify Pay Item Number, Type:
Rate
Lumpsum
Milestone
Describe Work Component & Payment

23. Procurement for Complex Services Process – Specify Distributions
Define Distribution for each Pay Item on Progress Payment Schedule
Define Distribution for the Advance

24. Procurement for Complex Services High Level Business Flow
Request for Service
Source
Author Contract
Advance Payment
Track Progress
Process Payment
Supplier requests the advance if provided for on the contract.
The advance amount is paid to the supplier

25. Procurement for Complex Services Process – Advance
Pick an invoice type of Prepayment
Match to the Advance payment item on the PO.

26. Procurement for Complex Services High Level Business Flow
Request for Service
Source
Author Contract
Advance Payment
Track Progress
Process Payment
Contractor reports progress
Progress is certified by Facilities Manager, and/or Project Manager

27. Procurement for Complex Services Process – PO View
Supplier can create Work Confirmation
Summary of the Approved Amount, Billed, Advances, and Progress Payment
Supplier can view details & status of the Progress Payment Schedule

28. Procurement for Complex Services Process – Create Work Confirmation
Supplier can specify Work Confirmation Number & Period of Performance
Supplier can report progress as Requested Amount, Material Stored or as a %
Preview and Submit

29. Procurement for Complex Services Process – Work Confirmation Status
Confirmation for the submitted Work Confirmation
Advanced Search Capability for Work Confirmation Summary Page
Monitor Status of Work Confirmations

30. Procurement for Complex Services Track Progress - Projects
Project Homepage displays information regarding actuals versus commitments for the entire project.

31. Procurement for Complex Services High Level Business Flow
Request for Service
Source
Author Contract
Advance Payment
Track Progress
Process Payment
Contractor submits Invoice for Progress Payments and Contract Financing
Retainage is applied
Financing is recouped
Payment is released

32. Procurement for Complex Services Integrated Products
Oracle Projects
Budget /
Deliverables
Cost
Collection
Request for Services
Retainage
Release
Procurement for Complex Services
Negotiate
Oracle Payables
Invoice /
Payments
Control
Track
Progress
Advanced Procurement

33. Procurement for Complex Services Process – Track Progress
Request for Service
Source
Author Contract
Advance Payment
Track Progress
Process Payment

34. Procurement for Complex Services Process – Payment
Request for Service
Source
Author Contract
Advance Payment
Track Progress
Process Payment

35. Procurement for Complex Services Payables Progress Payment Features
Multiple Invoice Entry Options
Invoice Workbench / Quick Invoice
iSupplier Portal
Import
Automatic invoice generation from work confirmation
Automatically Recoup Financing Payments
Automatically Withhold Retainage
Invoice Match Option levels
Tolerances, Holds, and Holds Resolution
Invoice Approval Processing
Accounting, Budget, and Tax Compliance

36. Procurement for Complex Services Progress Payment – Invoice
Standard Invoice
Summary of Activity

37. Procurement for Complex Services Progress Payment – Invoices
As progress is made on the work, the supplier continues to submit work confirmations, work is approved, invoices are generated, and retainage is withheld
Billed
Retained
Advance
Approved
Resurface Lot
Road Work
Landscape
Final Painting
50,000
200, , <20,000> <50,000>
500, , <50,000>
250, , <25,000>
50, , < 5,000>
1,000, ,000, <100,000>

38. Procurement for Complex Services Progress Payment – Retainage Release
Retainage Release Invoice
Previously Retained Amounts per Pay Item

39. EAM Support for Services Procurement Description
Oracle Enterprise Asset Management (eAM) is an Oracle Applications module that identifies, schedules and tracks all work activities/costs related to assets throughout an organization.
eAM customers often utilize contract service providers to do some of their maintenance work because the maintenance department may not have the necessary skills or manpower.
Examples of contract services: painting a building, copier repair services, database upgrade.

40. Oracle Services Procurement
Demonstration