Sourcing Rule in Oracle Purchasing

Sourcing rules determine the movement of materials between organizations in a global enterprise; these organizations include the suppliers and the materials include those items made at the manufacturing organizations.

Sourcing rule can be global (available to all organizations) or local (available to the only organization in which it is defined)

Replenishment source can be:

1) An inter-organization transfer (Transfer From)

2) The replenished organization that manufactures the item (Make At)

3) An external supplier (Buy From)

Make at:

This option specifies that you will make any items associated with the rule at the receiving organization.

Buy From:

This option specifies that you will buy any items associated with the rule from supplier. You must enter appropriate supplier and site (optional).

Transfer from:

This option specifies a diff organization within the enterprise as the source of the items. Using this option you will identify the source organization. You must have already defined the shipping network between source and receiving organization.

Ship method

Ship Method determines the Intransit time and shipping cost which planning will use in its calculations.

Allocation and Rank in Sourcing rule

You can rank the sources of supply named in the rules and bills, giving one priority over another when the planning process generates recommendations. You can also assign sourcing percentages to these sources, allowing you to allocate a portion of the total orders to each source. You cannot apply sourcing rules and bills of distribution (make them Planning Active) until the sum of the allocation percentages equals 100.

Once you have defined your sourcing rules and bills of distribution, you must assign them to particular items and/or organizations.

Each Sourcing rule can be assigned to:

A single item (across all organizations)

An item in a specific organization

All items in a specific organization

A category of items

A category of items in an organization

All items in all organizations (globally)

Here, I’ll discuss how to create sourcing rule and assigning it to an item.

1) Verify Profile Options
Navigate to System Administrator à Profile à Personal Profile

Verify the following Profile Options

MRP:Default Sourcing Assignment Set: Supplier Scheduling

PO: Automatic Document Sourcing: Yes

PO: Allow Auto-generate Sourcing Rules: CREATE AND UPDATE

PO: Allow Autocreation of Oracle Sourcing Documents: Yes

2) Create a Item in Inventory with Purchasing Item Template

3) Create Sourcing Rule

Navigate to Purchasing à Supply Base à Sourcing Rules

Enter the Name, Effective Date

Select All Orgs

Select Type as Buy From

Enter Supplier Name, Allocation % and Rank

Save

4) Assigning Sourcing Rule

Navigate to Supply Base à Assign Sourcing Rule

Go to Menu à View à Find

Choose Supplier Scheduling from the list of values.

Add a new line with the item created and Assign the Sourcing Rule to the Item

5) Verify Sourcing Rule

Now, Navigate to Requisitions à Requisitions

Verify that the Sourcing Rule is defaulted on creation of the requisition for that particular item.

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