- Diagrammatic representation of a purchase cycle in oracle :
1.Create Requisition :
- Requisition is a nothing but general request for goods or services.
- Requisition is classified into 2 types :
- 1.Internal Requisition: Internal requisitions means requesting and transferring material from one inventory to other inventory.
- 2.Purchase requisition: Unlike Internal requisitions, Purchase requisitions are used for requesting material from suppliers.
2.Creating Purchase order :
- Oracle software provides the option for auto generating the purchase order for the requisitions.
- Oracle software also provide the option for selecting the type of purchase order.
3.Receipt :
- After sending the purchase order to the supplier,customer will wait for receiving the goods or services .
- After receiving the goods customer will create the receipt for received goods.
4.Invoice :
- Once the goods are received, it’s time to pay the vendor for the goods purchased and hence the invoices are created.
5.Payments :
- After receiving the goods customer will make the payment to the supplier.
6.Returns :
- If customer want to return the goods to supplier because of faulty in goods then supplier will returns the money to the customer for returned goods.
Advantages :
- Oracle software provides the automatic creation of the purchase order for requisition.
- It provide the option for selecting type of purchase order.
Disadvantages :
- Oracle software is more expensive.
- Oracle software is not user - friendly.
