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Topic

    Manavalan Ethirajan
    Workaround for Services Procurement on Cloud
    Topic posted March 29, 2018 by Manavalan EthirajanSilver Medal: 2,000+ Points, last edited March 30, 2018 by Ivan PenaBronze Crown: 15,000+ Points, tagged Orders 
    601 Views, 5 Comments
    Title:
    Workaround for Services Procurement on Cloud
    Content:

    At the moment, services procurement capabilities are not available in procurement cloud. Following are the few suggestions proposed.

    1. Model the milestones as purchase order lines. For example, when a large equipment say boiler need to be purchased with various payment milestones create each milestone as a purchase order line like 10% at the time of PO, 20% of PO amount when supplier design is approved, 50% of amount when material is received, 20% after successful commission. By this, each milestone can be tracked and payment can be made progressively.
    2. Oracle Projects Portfolio Management Cloud can also be considered (leverage project-task milestone based payments). You can refer https://cloud.oracle.com/project-management-cloud
    3. Accounts Payable's withholding tax can be used to model retainage on supplier's invoices. Note it would require setting the supplier as a tax authority, so that if necessary, Accounts Payable Cloud can automatically create withholding invoices to pay the retainage back to the supplier.

    Customers are encouraged to provide their use cases with the frequency of usage. This input will help us to understand the requirement clearly and build service procurement specific capabilities such as milestone based progressive payments, advance, retention, recoupment, work confirmation, etc.

    Please feel free to post any questions or comments.

    Comment

     

    • Rama Bankia

      Is there any way to do receiving % wise of the same service line ? The system should show , received % and retaintion %.

    • John Tolmachoff

      Has there any further discussions on adding this to the Procurement Roadmap?  The above solution can work, in limited cased when the PO line being purchased is for services, but not for inventory.  Receiving needs to be considered.  One cannot receive half of single unit of inventory. 

      The above solution also does not consider the deliverables being tied to the milestone.  Modeling PO lines to address BOTH services and their supporting deliverable could result in 1000's of PO lines for a construction project.  

    • Nitin Katare

      There are no plans in the short to medium term to address this requirement. Primarily due to cross family impact across products and where the various products are in terms of their priorities. We would be open to hearing about specific use cases that pertain to Purchasing alone that need modeling and have gaps.

      • John Tolmachoff

        I have about 4 Cloud ERP clients with this need.  Essentially the same capability as was available in EBS.  One client is further along than the others and we are packaging up material to review with Prod Development. 

        To be clear, this not being supported is a HUGE gap.  Every client has this whether they are buying a IT or hard asset.  Modeling these as PO lines is not sustainable or reportable.

    • Katherine Kissel

      Of the three workarounds, has anyone found success with one of them in Oracle r13?  If yes, can you provide any additional documentation or set up instructions to do this successfully?  Thank you!