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1) When you say "Interco suppliers" : Do you mean the internal requisition process? If so, then you can have different approval hierarchies for the internal requisitions. And you can set your approval groups such that the requisition can be approved by the person creating it. The internal requisitions will get converted into Internal sales orders. So POs will not come in picture for this.
2) The POs will follow your approval hierarchy.
Is there any functionality by which the PO does not go thru approval process after the PO has been created by the Buyer. We do not plan to give large authorized limit to Buyer. >
Your question is not clear. Are you saying that you want the buyer to create a PO. The buyer won't have large limits. But you still want the PO to be approved without going thru' the approval process.
That is not possible.
We do not plan to use the IR ISO process for procurement due to legal requirements. What i meant is that when PO is created, if the supplier is Interco Supplier then there should not be any approval linked to such PO as procurement is done from Interco Supplier. Whereas, if the PO is on external supplier / vendor then the PO should follow the approval process [ buyer should not be able to approval the PO, it should follow the Job Position Hierarchy].
Is it possible to achieve the above requirement in Oracle and possible workarounds.
So Interco Supplier is really a internal supplier but for all practical purposes, it is setup as another supplier?
Oracle has no functionality that allows for this. The only thing I can think of is that you setup 2 hierarchies.
One for regular purchases and another one for Interco purchases.
The Interco hierarchy has everyone with a $100m limit.
It is upto the buyer to select the correct hierarchy. For Interco POs, they should select Interco hierarchy.
You can add some personalizations / reports / alerts to ensure that Interco hierarchy is not chosen for any other suppliers.
Thanks for the reply. We have set up Interco Supplier as another Supplier.
I am not able to understand the point - The only thing I can think of is that you setup 2 hierarchies.One for regular purchases and another one for Interco purchases.
We define Hierarchy and link this to Document Type like - Standard PO .
For both Interco Supplier and External Supplier, PO Type will be Standard . Can we have 2 different Hierarchies in this case? Pl share your input.
What Sandeep saying is, you have to create two hierarchies and while submitting PO by the buyer the correct hierarchy needs to be selected by the buyer based on internal/external vendor.
And you are right that system allows you to default only one hierarchy on Standard PO, but it's just a default value which can be overwritten by the buyer/user.
Thanks & Regards
Also make sure that the "Can Check Approval Hierarchy" box is checked in the document types for PO. (Purchasing > Setup > Purchasing > document types)
You can also can try the following functionality.
1. For internalCo Supplier You can set up only a Standard Purchase Order and in Document type of Standard PO You can check the box "Owner can approve",and "Approver can Modify".Also in approval assignment set give limit to the buyer so that he can not exceed the purchasing limit.In case that particular buyer try something different apart from his scope system will send the PO to his superior for approval this is just to keep the check on the buyer.
2.And in second case Use only Blanket Purchase agreement for external supplier if they are regular suppliers. Also in documnet type of "Blanket Release" don't Check the box "owner can approve" but check the box "approver can modify" and assigned required Hierarchy to that document.By this that particular release will going through the approval Hierarchy process.