How to create a Negotiation from Approved PR
In this guide, we will create a Negotiation from an Approved Purchase Requisition. Please follow the detailed steps to use this functionality efficiently.
After logging on to Oracle Fusion, navigate to the Procurement tab and click on the Purchase Orders infotile.
In the Purchase Orders work area, click on the Tasks button to expand the task menu and click on Process Requisitions.
In the Process Requisitions, provide the appropriate search criteria and click on the Search button to search for the requisitions in Process Requisitions.
Once the search results are populated, select the Requisition Line and click on the Add to Document Builder button.
In the Add to Document Builder tab, provide the criteria as follows to create a Negotiation:
- Type: New Negotiation
- Negotiation Type: RFQ
- Negotiation Style: Standard Negotiation
- Negotiation Template: Select the appropriate template
- Outcome: Purchase Order (You can select an Agreement)
- Negotiation Currency: USD
Once all the criteria are filled, click on OK.
Once the requisition line is added to the Document Builder. Click on the Create button.
A negotiation will be created against the requisition line. Click OK on the Information message.
In the Edit Negotiation, the first stage is the Cover Page. Describe the details of RFQ on the Cover Page. After completion, click on the Next button.
In the Overview Section, provide the Title of the Negotiation. All the other details will be automatically populated, such as Negotiation Style, Buyer, Procurement BU, Outcome, and Approval Amount. Verify these details.
Under Overview in the General Section, provide the Introduction of the Negotiation.
In the Schedule under the General section, provide the Preview Date, Open Date, Close Date, and Award Date. You can also select the Open upon Approval option for the Preview Date and Open Date.
In the Negotiation Control, select Response Visibility as Blind, which will let the Buyer have visibility on the negotiation response in open status. If you choose Sealed in the Response Visibility, the Buyer will not have any visibility until the Negotiation closes. The default Negotiation Layout and Response Layout will populate; you can change these by Custom Layouts if required.
In the Requirements, you can enable different functions for Negotiation Requirements, such as Enable Team Scoring, Enable Weights, Display Scoring Criteria to Suppliers, and Default Maximum Score.
For the Negotiation Lines, Requisitioning BU will be defaulted from the requisition, and select the appropriate Price Tiers, Rank Indicator, and Ranking Method. Also, you can allow the supplier to offer an Alternate Line against the Original Line by selecting Allow Alternate Line as Yes.
In the Response Rules, you can enable rules of your choice as per the Negotiation Requirements with the Suppliers, and if you want to display the same rules to Suppliers, then checkbox in the Display to Suppliers option.
In the Terms section, you need to define the Business Terms such as Payment Terms, Shipping Method, Freight Terms, FOB, and Buyer Managed Transportation. Also, define the Currency details such as Negotiation Currency, Price Precision, and the option of Allowing Response in Other Currencies.
In the Collaboration Team, click on the Plus icon to add the internal members for Negotiation Scoring with their Access Level. Once all the members are added, click on the Manage Scoring button.
In the Manage Scoring, click on the Plus icon to create a team for the Negotiation Scoring from the members added to the Collaboration Team.
In the Create Scoring Team, select the members from Available and put them under selected using the Right Facing Arrow button.
Once the members are added to the Selected side, provide the Scoring Team name, and you can also define the Scoring Deadline if required with the Instructions. Once all the required details are filled in, click on the Save and Close button.
Now, you will be able to view your Scoring Team details under Manager Scoring. Click on Done to close this tab.
Optionally, if you want to associate a Project with Negotiation, then you can define Project details under Project Tasks.
Once all the details are filled in the Overview Section such as General, Terms, and Collaboration Team, click on the Next button.
Now, we are in the Negotiation Requirements section. Here, we will add the Requirement Details of the Negotiation.
In Requirements, click on the Add Section button.
Once the Section is added, provide the name of the section and click on the Add Requirement button. Also, you can add Predefined Questions if those are available in the System.
In the Add Requirements, provide the Requirement Details.
In the Add Requirements, scroll down to the bottom where you have to define the Properties of the Requirement, such as Level, Required, Requirement Type, Value Type, Target, Attachments from Supplier, Scoring, Weight, Maximum Score, and Knockout Score.
Once all the details are filled in for the Requirement, click on the Save and Close button.
Once the Requirements are added for the Section, then you have to associate a Scoring Team with this Section. Click on the Scoring Team dropdown and select a team. Similarly, you can have multiple Sections with multiple requirements for a negotiation; you can add those using the same steps.
Once the Requirements section is completed, click on the Next button.
Now, we are in the Negotiation Lines section. You will find your Requisition Line added here, and if you want to add an additional line, then you can add that by clicking on the Plus icon. Verify the line details such as Line Description, Category, Location, Requested Delivery Date, and Current Price, and make changes if needed.
Once the Lines details are filled in, click on the Next button.
Optionally, if you want to create a Procurement Contract from the Negotiation, then you can create that by clicking on the Create Contract button. If not, then click on the Next button.
In the Suppliers Section, click on the Search and Add button to add Suppliers for the Negotiation. Once all the Suppliers are added, click on the Next button.
In the Review section, you can review your Negotiation Details from each section. Once reviewed, click on the Publish button to publish the Negotiation.
After submission of the Negotiation, the system will generate a confirmation popup. Click OK.
After submission of the Negotiation, navigate to the Procurement tab and click on the Negotiations infolet.
In the Negotiations work area, click on the Tasks icon to expand the task menu and click on Manage Negotiations.
In Manage Negotiations, provide the appropriate search criteria and click on the Search button to search for your Negotiation.
From the search results, click on your Negotiation hyperlink and open it.
Verify that the Negotiation is in Active status.
Now, we will create a Supplier Surrogate Response for our Negotiation. To create a Surrogate Response, click on the Actions dropdown, click on Manage, and click on Create Surrogate Response.
In the Create Surrogate Response tab, provide the Supplier, Supplier Site, and Supplier Contact, and click on the Create button.
In the Overview section under Create Response, provide the Response Received On Date and other optional details. Once all the Overview details are filled in, click on the Next button.
In the Requirement section under Create Response, provide the Requirement Details as requested. Once all the Requirement details are filled in, click on the Next button.
In the Lines section under Create Response, provide the Response Price and review other line details. Once all the Line details are filled in, click on the Next button.
In the Review Response section, review the response details. Once done, click on Action dropdown and click on Validate. This will validate if there are any issues with the response.
Once you get the Validation Confirmation message, click OK and click on the Submit button.
After submission, the system will generate a confirmation message about the response submission. Click OK. Here, we have created a Surrogate Response for our Negotiation.
Now, we will see how we can respond to a Negotiation as a Supplier. The supplier will login into Oracle Fusion, navigate to the Supplier Portal, and click on the Supplier Portal infotile.
In the Supplier Portal work area, scroll down to the Negotiations section.
Click on the View Active Negotiations under Negotiations.
In the Active Negotiation, search and select the Negotiation and click on Create Response.
In the Overview section under Create Response, review the details and make changes if needed. Once all the Overview details are filled in, click on the Next button.
In the Requirement section under Create Response, provide the Requirement Details as requested. Once all the Requirement details are filled in, click on the Next button.
In the Lines section under Create Response, provide the Response Price and review other line details. Once all the Line details are filled in, click on the Next button.
In the Review Response section, review the response details. Once done, click on Action dropdown and click on Validate. This will validate the response to make it error-free.
Once you get the Validation Confirmation message, click OK and click on the Submit button.
After submission, the system will generate a confirmation message about the response submission. Click OK. Here, the Supplier has created a Response to our Negotiation using Supplier Portal.
Once we receive a response from all the suppliers, go to Manage Negotiations, click on the Negotiation hyperlink and open it.
Since we have received a response from all the suppliers, now we will Close the Negotiation. In the Negotiation page, click on the Actions dropdown, click on Manage, and click on Close.
In the Close Negotiations, select the close immediately checkbox and click on the Submit button.
After the Negotiation closes, the system will generate a confirmation message. Click OK.
After the closure of the Negotiation, we have to Open Scoring for our Negotiation for Internal Team Members. Now to Open Scoring, click on the Action, click on Manage, and click on Open Scoring.
The system will generate a warning about Open Scoring, click Yes.
Once the Scoring is Open, the system will generate a confirmation message about it. Click OK.
Now, we have logged in as an Internal Responder for the Negotiation. Click on the Bell icon.
In the Bell icon, the Internal Responder will receive a notification about the Negotiation Scoring. Click on the hyperlink of the Notification.
Click on the Negotiation hyperlink to open for Scoring.
You will be routed to the Score Response tab, click on the Pencil icon against the supplier to Score Response.
In the Enter Score, provide the Score in the Requirement. Once done, click on the Submit button.
Similarly, Score the other Supplier’s Response. Click on the Pencil icon.
In the Enter Score, provide the Score to the Supplier Response for Requirement and click on the Submit button.
Once the Internal Responder responds to all the Suppliers, click on the Submit button.
The system will generate a warning about the Scoring Submission, click on Yes.
The system will generate a Confirmation Message about the Scoring Submission. Click OK. Similarly, all the Internal Responder should respond and Score supplier responses.
Once all the Internal Responders respond to Supplier Responses, the section under Manage Scoring will show 100% Scoring Progress.
Now, to close the Scoring, go to the Negotiation, click on the Actions dropdown, click on Manage, and click on Close Scoring.
The system will generate a warning message about the Score Closing. Click Yes.
The system will generate a Confirmation message about the Score Closing. Click OK.
Now, we will initiate the Award Negotiation. Open Negotiation, click on Actions dropdown, click on Award, and click on Award Negotiation.
In Award Negotiation, select the Supplier based on the Score, Response Amount, Overall Rank, and other factors. After selecting, click on the Award button.
In the Award Response, scroll down to the bottom.
Select the Supplier for Award Decision.
Once the Award Decision is selected, click on the Save and Close button.
The system will generate a Confirmation message about the Award Decision. Click OK.
Once the Award Progress Percent is 100%, click on the Submit for Approval button to send the Award Decision for Approval.
The system will generate a confirmation message once you submit the Award Decision for Approval. Click OK.
Once the Award Decision is approved and the Negotiation status changes to Award Approved, click on Actions, click on Award, and click on Complete Award.
In the Complete Award, select the Outcome as Create Purchasing Document Now. Check mark on notify to other suppliers and Click OK.
The system will generate a Confirmation Message about the Create Purchasing Documents. Click OK.
In the Create Purchasing Documents, verify all the details related to the purchasing document and click on the Submit button.
After submission, a Confirmation will be generated. Click OK.
As you can see, a Purchase Order has been created using the Negotiation of an Approved Purchase Requisition. Click on the Purchase Order hyperlink to view details.
In the Purchase Order, you will be able to see the Requisition and Negotiation Number from which this PO is created.
The guide covered the steps to create a negotiation from a requisition in Oracle Fusion. Please follow the detailed steps to utilize negotiation efficiently.