1 2 Previous Next 15 Replies Latest reply on Jan 6, 2011 5:11 AM by User12642515-Oracle

    sourcing rules query


      In sourcing rules setup, an item is assigned with 2 suppliers allocation % (30, 70) rank 1 resply.

      In OM i have created dropship sales order after requisition import
      i see only one line purchase requisition raised for only higher % supplier with total qty.

      As per sourcing rules the purchase requistion should have raised in two lines with spilt in qty.

      i want dropship sales order -> purchase requistion, so when checking at sales order > add, line info. > dropship tab ..... i am seeing only one purchase requistion generated for the high % supplier with total qty.

      Can i know the reasons for having requistion with one supplier with total qty??


      Edited by: user10255615 on Nov 11, 2008 5:43 AM

      Edited by: user10255615 on Nov 11, 2008 5:44 AM
        • 1. Re: sourcing rules query
          You have to set the autosource_flag to 'P' for partial sourcing.

          Check and see!
          • 2. Re: sourcing rules query
            i didn't find any info regarding autosource_flag.

            Give me some more information.
            Thanks in advance.

            • 3. Re: sourcing rules query

              Pls explain AUTOSOURCE_FLAG .
              I'm not able to find the path .
              • 4. Re: sourcing rules query
                Sandeep Gandhi, Consultant
                The sourcing rules and the split percentages work only from MRP / ASCP since only the planning engine is able to process that information.
                Drop ship requisition creation does not consider this information.
                You will find the same thing if you run min-max and look at the min-max requisitions.
                • 5. Re: sourcing rules query
                  What if we set the %age to 50-50 for both suppliers? How the system will behave?

                  I'll also check and update latter, but if someone knew can please let us know.

                  • 6. Re: sourcing rules query
                    The system will take the supplier from the first line.
                    • 7. Re: sourcing rules query

                      When ever we are defining 2 suppliers with the allocation percentage as 50%, then why is it considering the 1st supplier only even though the rank is set to 1 for both the suppliers? Is this standard functionality of Oracle? And is there any impact of Rank??

                      • 8. Re: sourcing rules query

                        This is my understanding ... there are 2 setups needed:
                        (a) Sourcing Rules
                        (b) Approved Supplier Lists (ASL)

                        I don't think the sourcing rules (rank and allocation %) is used anywhere in Procurement and Purchasing.
                        So it is confusing why we have to setup sourcing rules for Procurement and Purchasing.... but looks like it is mandatory setup. Again, I am not sure what the thinking was over here by the experts .........

                        The ASL is however used to display BPA information such as supplier price on the shopping page of I-procurement.
                        So, if an item has 3 suppliers and each supplier provides different prices, all three supplier prices display based on ASL.

                        • 9. Re: sourcing rules query

                          The following doc woudl give you better clarity on ASL/Sourcing rule subject :Note:557825.1.

                          • 10. Re: sourcing rules query

                            The following doc in Metalink woudl give you better clarity on ASL/Sourcing rule subject :Note:557825.1.

                            • 11. Re: sourcing rules query

                              That is a good article .... but it is kind of indicating what I am saying about Sourcing Rules in Purchasing. Below is a quote .....

                              +"There is no meaning for the allocation percentages & ranks as per the current functionality in PO and there is no mechanism for splitting up to multiple suppliers based on ranks/allocation percentages. This ranks and allocation percentages are used by Master Scheduling/MRP to allocate planned orders for their processing."+

                              Allocation percentages and ranks in Sourcing Rules are NOT used by Purchasing.

                              • 12. Re: sourcing rules query

                                The sourcing rule percentages are recognised only by the planning engine.Therfore for you to use the sourcing rule functionality of divinding the order qty between suppliers the requisition need to come from MRP or ASCP only.

                                • 13. Re: sourcing rules query
                                  I'm fairly new to this in an Out of the Box installation with absolutely no customisation.

                                  However, I believe the system will allocate 100% of your demand to the Supplier with the largest % as you have not defined the capacity of the Supplier, if you define the Supplier capacity then system will see that demand is exeeding available supply and will look to allocate to the second Supplier.

                                  Hope this helps.
                                  • 14. Re: sourcing rules query
                                    Planning uses sourcing logic to look at each planned order --> Determines; Make or Buy item and who. Note: Sourcing logic will NOT split orders.
                                    1. 1st planned order is assigned to the supplier source with the highest %
                                    2. 2nd planned order is assigned to the supplier source with the 2nd highest %

                                    Source with the Highest % X Total QTY Required = Source

                                    The system totals the QTY of planned orders for an item and then calculates the allocation QTY for each source by multiplying the percentage allocation TIMES the Total QTY = to arrive at Source 1.

                                    Please note the system performs this over the entire planning horizon.
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