Oracle Complex Purchase Orders – Lump Sum

Oracle Complex Purchase Orders – Lump Sum – It is recommended to read the Complex Purchase Order overview document here prior to reading this document.

Business Scenario: A Lump Sum based complex purchase order may be used to procure a complex service where the purchasing organization prefers to make progress payment based on the percentage of work completed at a given time. For example: An order being placed with a Painting company to paint the whole office building of the Purchasing Organization and progress payment will be made on 25%, 50%, 75% and 100% completion.

How to create a Complex Lump Sum Purchase Order:

Responsibility: PO Superuser or similar
Navigation: Buyer Work Centre -> Orders
Select the “Complex Purchase Order” document style in the “Create” field and click on the “Go” button.

Popular Oraappsguide Video: Oracle Complex Purchase Order Overview

Enter all the required information in the Header section.

Now go to Lines tab and enter the PO lines.
Select the line type (e.g. Fixed Price Services) – The value basis of the line type should be Fixed Price.

Note that, you won’t be able to enter the Quantity and Unit information for a Fixed Price Services line type, as the total amount will be entered in the Price field of a PO line. As per the above example, if the Purchasing Organization agreed to pay $10000 to the Painting Company then 10000 will be entered in the Price field while the Description of the service and related category needs to be entered along with the Need-by-date.

Next go to the “Pay Items” tab and select “Lump Sum” in the Type field. You need to split the pay item for a particular line to multiple if it is applicable and then update the Lump Sum value, need-by-date accordingly.

Enter the distribution information as appropriate and finally save and submit the PO for approval.

Once the PO is approved, it will be ready to create Work Confirmations.

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The content posted above is based on author’s own experience and opinion. The details mentioned above may differ in various versions and scenarios of Oracle e-Business suite. You need to have required licenses from Oracle to enable mentioned functionalities.

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