Creating Contractor Request – Recommend you to read the brief about “Contractor Request” functionality here prior to reading the content in this page. Switch to iProcurement responsibility and click on the “Contractor Request” link in the “Shop” tab.
There are two options in the “Type” field as “Rate Based Temporary Labor” and “Fixed Price Temporary Labor”. The differences are as below:
Rate Based Temporary Labor: This indicates a contingent worker being hired based on daily/hourly rate for a specific number of hours. For example: You are hiring an Oracle Technical Consultant for 200 hours to do a custom object development for your project and have agreed to pay $100 per hour.
Fixed Price Temporary labor: In this case, you are hiring a contingent worker based on fixed price agreement to complete project deliverables. For example: You are hiring an Oracle Functional Consultant to study your business process and finally deliver the Future process model document for the R12 implementation project in your organization and have agreed to pay a fixed amount of $12000 to complete the activity.
In this example, we will use the “Rate Based Temporary Labor” line type to create the requisition.
Select the Type as “Rate Based Temporary Labor”.
Select the Job code you are planning to hire for (e.g. Consultant, Analysts etc.). The Job-category association setup needs be done to get the job codes in this list of values. See the “Job Category Association” setup details here.
Enter the start date of the assignment while end-date is optional.
Requester name defaults to your name. Change it if you are creating the requisition on behalf of someone else. See the difference between originator vs requestor here.
The Location field defaults from your HR assignment records but if you have entered a different location in the iProcurement preferences page then this will override the location derived from HR assignment. More information on iProcurement Preferences here.
The value in the job details field defaults from the “Job Description” mentioned in the “Job-Category association” setup. See the “Job Category Association” setup details here. You may override this value to elaborate the job description of the contingent worker being hired.
The “Contact Information” field is mandatory which may contain the contact details information of the contingent worker.
Click on “Continue” once all the required details in the “Create Contractor Request” have been entered.
You may select “Use Preferred Suppliers” or “Suggest Supplier and Contractor” radio buttons. More information on these option available here. By default “Use Preferred Suppliers” option is selected.
Enter the rate and budget information such as – Unit, Estimated quantity, Target Rate, Labor amount and Expense Amount.
Unit – This is actually the unit of measure (UOM) of the assignment (e.g.- Hours, Days etc.). If you are planning to hire a contingent worker on hourly rate basis, the “Unit” value will be “Hour”. Note that, the UOM codes listed in the UOM class mentioned in the site level of the profile option “PO: UOM Class for Temp Labor Services” appears in the list of values attached to the “Unit” field.
Estimated Quantity – This indicates the estimated duration the contingent worker will be hired for (e.g. 100 hours, 200 days etc.)
Target Rate – This is similar to unit price to indicate the hourly/daily rates budgeted for the contingent worker.
Labor Amount – This is actually the multiplication of “Estimated Quantity” and “Target Rate”. You need to manually calculate the values and populate the result here.
Expense Amount – Most of the cases, it will be agreed to pay for the expenses in relation to food, travel, accommodation etc. to be incurred by the contingent worker. The agreed/budgeted expense amount needs to be entered here. This is an optional field.
The “Allow Rate Differential” checkbox indicates whether there will be different hourly/daily rates for the weekend/public holiday/overtime work hours. Just check the box if it is applicable.
Once you fill in all the information including expense amount and checkout, you will see there are 2 lines created in the requisition as line 1 and 1.1. Line 1 contains the hourly rate and quantity information while line 1.1 contains the Expense amount.
Optionally enter/update the project/task, charge account and location information and finally submit the requisition for approval.
Now the “Contractor Request” creation is complete. Next, we will see the purchase order creation process.