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    Terence Lee
    Purchasing Categories - Dillema to Improve Users'...
    Topic posted April 15, 2019 by Terence LeeBlue Ribbon: 750+ Points, tagged Financials, Requisition Processing 
    73 Views, 3 Comments
    Purchasing Categories - Dillema to Improve Users' Experience versus Driving Down Finance Reclass
    Purchasing Categories - Dillema to Improve Users' Experience versus Driving Down Finance Reclass

    Hey. I wanna check out with people at large on how your organisation is handling this issue of mine i.e. Purchasing Category usage.

    We wanna drive to maximise users' experience i.e. lesser counts and more concise purchasing categories; and we also wanna drive down finance reclass i.e. having more details purchasing categories will help from upstream.

    How do your business cater for the above two extremes?

    Oracle ERP Cloud R13



    • Alan

      Hi Terence, 

      In my experience, the categories has always been driven by both the Finance & Accounting Teams and from a Purchasing perspective, the naming of the categories should be clear, simple, and concise, so the business understands what they are selecting.

      For example, if you are buying software, the category in the system should be called Software. There could be variations on the categories, for things like prepaids or capex thresholds, in which you can simply create the following:


      Prepaid Software

      Software > $1,000 (or whatever capex threshold your company wants to follow)

      This way, the accounting codes will be linked to the category that is being selected at time of PR creation.

      You can probably create a matrix and share it with the business so they know what category to select for each purchasing decision.



    • Leaman Crews

      I agree with Alan in that the finance side of the company has to take priority. Engage them on what they need for streamlining. Procurement and end-users can adapt to whatever is put in place, but the categories should suit the needs of the accountants and analysts. 

    • Terence Lee

      Thanks All!

      Its exactly what we did and we ended up with > 200 lines of purchasing categories and then hurting procurement requesters' experience where they have a super long list to choose from.