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    Alan
    Change Order Functionality in OracleCloud
    Topic posted February 26, 2019 by AlanSilver Trophy: 7,500+ Points 
    146 Views, 12 Comments
    Title:
    Change Order Functionality in OracleCloud
    Summary:
    Change Order Functionality
    Content:

    Hi All,

    I have been receiving contradictory responses with regards to having the ability to initiate a Change Order within OracleCloud.

    1. I've been told that all change orders needs to be initiated via the Purchase Requisition

    2. I've been told that change orders cannot be initiated via the Purchase Order

    Is there anyone that can provide the source of truth of what the capability is in OracleCloud with regards to Change Orders (adding funds, updating the charge account, making any changes to a Purchase Order).

    Thanks!

    -Alan

    Comment

     

    • Neelam Thakur

      Hi Alan,

      I can relate my experience. We do not use requisitions. We only  use PO's and change to an approved PO will initiate a change order. I have seen this many times. Now I do not know if this will be different for a PO created from a requisition.

      Thanks,

      Neelam

      • Alan

        Hi Neelam, 

        Thank you for your reply.

        Just to confirm, you are NOT creating a Purchase Order from a Requisition today? So I assume you have a buyer creating a Purchase Order directly?

        What is your approval chain for a change order today?

        Thanks for your insight!

        -Alan

        • Neelam Thakur

          That is correct. Buyers create POs. We follow employee supervisor chain, with "Manager then final Approver" approval method.

          • Alan

            Thanks Neelam for the insights again.

            For us, we create POs based on the Purchase Requisition, so our use case would be different than yours, but good to know that a Change Order functionality exists in OracleCloud.

            -Alan

    • Aditya Singh

      Hi Alan,

      I am providing this information based on my experience, you can create change order directly from a PO.

      Our PO are automatically gets generated once requisitions gets approved and if buyer want he can change the PO and again Change order will go for approval.

      Also PO created using requisition , here also we can directly create Change order by editing the PO.

       

      Thanks

      Aditya Singh

      • Alan

        Hi Aditya,

        Can you elaborate more on how Oracle designed this functionality to work using the example below?

        User initiates a PR for $100 and submits for approval, the PR is fully approved and a PO is created.

        User realizes that the PO should have been for $10,000 instead of $100. Can the user initiate a Change Order from the Purchase Order that was created to add $9,900 and have the "Change Order' route for approvals based on the additional amount of $9,900?

        Thank you!

        -Alan

        • Aditya Singh

          HI Alan,

          Yes you can edit the PO , change the amount and send it again for approval, that rule you can create in manage purchasing document approval.

          Also if you want your PO and PR to be in SYNC then you need to create new req and  add the same to this PO.

          Thanks

          Aditya Singh

          • Alan

            Hi Aditya, 

            Thank you for the clarification, are you able to advise why it is important for both the PR & PO to be in sync with each other? In my experience, I have never had to initiate a Change Order from a Requisition, all Change Orders were initiated from the Purchase Order and only the PO mattered once the initiate PR was fully approved.

            I'd like to understand where this notion or standard is coming from, is this something that the industry has deemed to be a standard where any changes that needs to be made, must be reflected on both the PR and PO? Honestly, once a PR is fully approved and the PO is created, no one should care about the PR unless you are doing auditing to figure out who created it, when it was created, and what the original amount approved was, otherwise, everything after that should stem from the PO going forward.

            Thank you!

            -Alan

    • Rajendra Rathor

      Hi Alan,

       

      I would be careful to respond as your business requirement may be different from others.

      In case of Req-to-PO,  once PO is created ( by Buyer or Auto-Create), this requisition is termed as "Complete".  so to change from $100 to $1000, I would follow either of 2 ways:

        1. Create another requisition REQ-2 of $900  & let Buyer add this 2nd Req to existing PO

        2. Let Buyer amend the PO ( Hence Change Order, but it wont reflect back to REQ-1), Alternatively, let Buyer cancel the PO ( As it cannot be rejected once approved)

       

      Hope it helps.

      Raj

        

      • Alan

        Hi Raj,

        Thank you for your insights, the whole idea of posting on this community forum is to gather feedback and opinions for things that I am unsure of with regards to OracleCloud, so again, thank you for responding to me.

        I would honestly like to take the Buyer out of having to do any type of approving or validating or checking, I've used Procurement systems that were truly self-service, in which the creator or requester would initiate a Change Order directly from their Purchase Order. The Change Order would route for approvals and once approved, the additional dollars would be added to the PO and a new version of the PO would be created (ie PO# 12345-2), that way, the original PO Number can still be referenced by the vendors and we don't have to worry about matching multiple POs to one Invoice.

        Thanks!

        -Alan

    • Suman Guha