MD.

050 FUNCTIONAL
REQUIREMENTS DOCUMENT
VeriFone Inc.
Quarterly PO Price Update
Program

Author:

Magesh Babu

Creation Date:

Feb 09, 2009

Last Updated:

Nov 09, 2009

Version:

V1.3

Approvals:
Vincent Ong

Supply Planner, Verifone Inc.

Siva Saravanan

IT Manager(SCM), Verifone Inc.

Document Control
Change Record
Date

Author

Versio
n

Change Reference

09-Feb09
12-Feb09
26-Feb09
18-Mar09
21-Sept09
06-Nov09

Magesh babu

Draft

New Document

Magesh babu

V1.0

Modified based on Review

Magesh babu

V1.1

BO Report attached

Shaik Basha

V1.2

BO Report modification and User Procedure

Shaik Basha

V1.3

Shaik Basha

V1.4

Addendum 1(Create Concurrent Request for PO

Price Update Script)
Addendum 2(Create Concurrent Request for PO
Price Update Script)

Reviewers

Name

Position

Siva Sravannan
Vincent

SCM IT Mgr
IHQ Purchasing Business User

Distribution

Copy
No.

Name

Location

Library Master

Project Library

MD050 Quarterly PO Price Update Program

Introduction

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Company Confidential - For internal use only

Contents

Introduction................................................................................................. 1
Glossary................................................................................................. 1
PO Price Update Project...............................................................................1
Background........................................................................................... 1
Business Requirements..........................................................................2
Assumptions.......................................................................................... 2
Pre Requisites........................................................................................ 3
Proposed Solution..................................................................................4
Open Issues.........................................................................................11
Closed Issues.......................................................................................11
Estimates............................................................................................. 12
Recommended Staffing.......................................................................12
User Procedure....................................................................................13
Addendum16

MD050 Quarterly PO Price Update Program

Introduction

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Introduction
This document summarizes the business requirements for updating the GPA
Number in PO Lines and for updating the Open Purchase Order line price
based on New Global Purchase Agreement, created during every new quarter
beginning. The solution includes use of standard features, data update script
and few business process changes. It also documents the assumptions that
are the basis of the work effort estimates provided.

Glossary
GPA Global Purchase Agreement
CM - Contract Manufacturer
VFI - VeriFone Inc
IT - Information Technology
PO Purchase Order

PO Price Update Project

Background
VeriFone Purchasing creates New GPA for each CM for every new quarter.
There are 5 contract manufacturers who supplies material to VFI, to buy
material from them VFI creates GPA for each CM.
Contract Manufacturers:1. Wincor Nixdorf Pte Ltd.
2. Sanmina-SCI Systems Singapore Pte.Ltd
3. Inventec Apploances Corp.
4. Jabil Circuit Inc
5. Wongs Electronics CO., Ltd
Once the new GPA is created and approved. User will manually update the
GPA Number in all the Open PO Lines (PO Lines not yet received and ASN
not yet created). Which will automatically update the new GPA price in the
PO line and it will unpeg the consumption from Old GPA and Peg to New
GPA.
For updating the New GPA number in PO lines manually, business is
spending 13 hours per quarter during quarter beginning. So business
wants to automate this process to avoid manual error and to make the
process faster.
This project needs one update script, use of Retro Pricing standard
functionality and two reports to be developed in BO or Oracle. This
document covers all the requirements and proposed solution.

MD050 Quarterly PO Price Update Program

Introduction

Company Confidential - For internal use only

Business Requirements
Based on the background process of PO Price update process, the
following business requirements are defined.
Current Process
Buyer/User needs to go through PO by PO to update the GPA Number
and Quarterly Price for each PO Line per the GPA Document every quarter.
Requirement

Mass-update of GPA Number / GPA Line# in PO Lines for all Open PO lines
which satisfy the below condition:
o

PO Lines pegged to "Old GPA Number

Approved PO

PO Lines - Received Qty = 0 (Open PO Lines)

No ASN loaded for the PO Lines.

To update Price in PO Line as specified in New GPA Document.

Updated PO of Approved Status will have the PO document in pdf format

send to Buyer's email account.

Need a two reports:

o

To show Items in existing POs that meets the above

conditions but doesn't exist in "New GPA#

To show what PO has been updated to "New GPA# prices.

Assumptions
The Proposed solution for the requirements is based on the following
assumptions:
New/Old GPA should exist and approved.
This process should be run by the Business process owner during
the quarter beginning.
First Update script should be ran before running the Retro Pricing
Program for the particular New GPA Number and Supplier.
Retro Pricing updates the price of all the Open PO lines based on the
GPA number and GPA Line # referred to it.
If the Buyer approval limit > PO Document amount then Retro
Pricing will do PO document revision and Approve the PO
automatically.
MD050 Quarterly PO Price Update Program

Introduction

Company Confidential - For internal use only

 If the Buyer approval limit < PO Document amount then Retro

Pricing will do PO document revision and forwards the PO document
based on Reporting Hierchary for Requires-ReApproval
automatically.
Before requesting for update script business user should compare
items of old GPA and New GPA by using BO Report1(Discrepancy
B/W old/New GPA ).

Pre Requisites
The proposed solution for updating the price in PO based on New GPA
requires following tasks to be completed:

New/Old GPA should be approved.

New GPA should contain all the open po items which are
pegged to Old GPA, which can be verified using BO
report1 (Discrepancy B/W old/New GPA.Rep).

Before running Retroactive Price Update on Purchasing

Documents program following tasks to be completed:

MD050 Quarterly PO Price Update Program

Planner should request the IT to run the update script to

update the Old GPA with New GPA and GPA Line#.

Introduction

Company Confidential - For internal use only

Proposed Solution

Yes

Run BO *
Report1,IFany
Discrepancy

1.Look for all PO

which are Approved

1.Update all the PO lines

Ref Document# and Line#
from Old GPA# to New
GPA#

Retro Pricing
(Business User)

Update script
Validation (IT)

Create a New
GPA and
Approve

Update Script
Process (IT)

Input
(Business User)

Process Flow

Add items in
New GPA

Contact IT
Yes

Run BO * *
Report2,IFany
Discrepancy

NO

Parameters
1.Old GPA#
2.New GPA#
3. Buyer

RequestITto run
Update Script
NO

Look for all PO lines which are

2. Pegged to old GPA Number
3. Received Qty=0
4.No ASN loaded for the PO Lines

Yes

Run BO ***
Report2,IFany
Discrepancy

NO

System DB Trigger will

automatically Unpeg the
Old GPA and Peg the
New GPA

2.Update Retro date to Sys date in PO lines table

3. Insert value of Old GPA#, Line# in attribute13 in PO
Lines table and PO Line Location table

Contact IT

Program will update the

New GPA item price in all
PO Line which has New
GPA#

Run Retro pricing

program using
Supplier
Name,Site,New
GPA#

System will
Approve the PO

**** Run BO Report 2 to

Verify Price Update, If
any Discrepancy

Yes

All open pos will get new

revision and status will get
changed to Requires Re
approval

If the Buyer Approval

Limit > PO Document
Amount

IT Inform Business User

through email after
executed the update script
in production (EBIZ)

NO

PO Requires Re
approval from
Supervisor

Yes

Contact IT

Close
NO

* Run BO Report1 (Discrepancy B/W old/New GPA.Rep) with old GPA Number, New GPA
Number and Supplier Name (Last Name, First Name)
** Run BO Report2 (Before & after Retro price update.Rep) with old GPA Number and supplier
Name (Last Name, First Name)
**** Run BO Report2 (Before & after Retro price update.Rep) with New GPA Number and
supplier Name (Last Name, First Name)
**** Run BO Report2 (Before & after Retro price update.Rep) with New GPA Number and
supplier Name (Last Name, First Name)

Step 1: Create New GPA

During every new quarter key business user creates new GPA based on
existing old GPA for particular supplier and approves the new GPA.

Step 2: Run BO Report1 (Discrepancy B/W old/New GPA.Rep)

This report return all the open po line items which satisfies below
conditions and has pegged to old GPA Number & doesnt exist in
new GPA for given buyer name

MD050 Quarterly PO Price Update Program

Introduction

Company Confidential - For internal use only

To show Items in existing POs that meets the below conditions and exist in
Old GPA but doesn't exist in "New GPA.
o

PO Lines pegged to "Old GPA Number

Approved PO

PO Lines - Received Qty = 0 (Open PO Lines)

No ASN loaded for the PO Lines

2.1Input Parameters:
Buyer Name (Last Name, First Name), Old GPA Number and New GPA
Number

2.2Output:

2.3BO Report1 Attached:

Error! Not a valid link.
2.4Discrepancy in Report1 (Discrepancy B/W old/New GPA.Rep)
Once the business user ran reprot1 and found discrepancy then items
have to be added in new GPA.
Step 3: Run BO Report2 (Before & After Retro price update.Rep)

This report should be run with old GPA number and buyer name before
requesting update script. Business user need to verify the PO#, PO
Lines, Items etc details before requesting for an update script

MD050 Quarterly PO Price Update Program

Introduction

Company Confidential - For internal use only

This report returns all open po details including po distributions which

satisfies below 4 confidtions and associated with old GPA number &
buyer name.
i. PO Lines pegged to "Old GPA Number
ii. Approved PO
iii. PO Lines - Received Qty = 0 (Open PO Lines)
iv. No ASN loaded for the PO Lines
Note:-This report should not return any rows for new GPA number
before update script.

3.1Input Parameters
Old GPA Number and Buyer Name (Last Name, First Name)

3.2Output

3.3BO Report2 Attached:

Error! Not a valid link.
3.4Discrepancy in Reprot2 (Before & After Retro price update details
for GPA.Rep)
Once the business user ran reprot2 and found discrepancy/issues then
he has to contact IT to resolve discrepancy/issue.

MD050 Quarterly PO Price Update Program

Introduction

Company Confidential - For internal use only

Before requesting for update script, business user should verify the
items using BO Report2 (Before & after Retro price update
details for GPA.Rep) and decide to go for update script or not.

Step4: Request IT to run update script

Once new GPA is approved, Business user submits an IT Request
with the following Input parameters to update Old GPA Number
with New GPA Number and old GPA Line Number with new GPA Line
number for Specific Buyer for all open PO lines.

Old GPA Number

New GPA Number

Buyer Name (Last Name, First Name)

4.1IT will run an update script using DCC which updates:

Update script stores the old GPA number and line number
in DFF-Attribute13 of PO lines table,PO line location table
for all open pos which satisfies bellow conditions?

Old GPA# with New GPA# and Old GPA Line Number with
New GPA Line Number.

Also update the Retrodate = Sysdate in PO_Lines_All table

for New GPA number (Purpose for updating the
RetroDate in new GPA: Retro Pricing Program will
consider only if the new GPA lines have retro date)

For all the PO Lines which satisfies all the below

conditions:

PO Lines pegged to "Old GPA Number

Approved PO

PO Lines - Received Qty = 0 (Open PO Lines)

No ASN loaded for the PO Lines.

4.2Input Parameters:

Old GPA Number

New GPA Number

Buyer Name

4.3Validations:

MD050 Quarterly PO Price Update Program

Old GPA and New GPA should Exist & Approved

Introduction

Company Confidential - For internal use only

Old/New GPA type = Blanket Purchase Agreement

Global Agreement Flag=Y

4.4Exceptions:
DBMS_OUTPUT.PUT_LINE('OldGPAnotapproved:'||l_old_gpa_approved);
DBMS_OUTPUT.PUT_LINE('NewGPAnotapproved:'||l_new_gpa_approved);

Step5: IT inform business user through email after executed

the update script in production (EBIZ)
Step6: Run BO Report2 (Before & After Retro price update.Rep)
o

This report should be run with new GPA number and buyer name
after update script and before retro price update program.

This report returns all open po details including po distributions

which were newly associated with new GPA number

This report should not return any rows for old GPA number after
update script

6.1Input Parameter

New GPA Number

Buyer Name

6.2Discrepancy in Reprot2 (Before & After Retro price update

details for GPA.Rep)
Once the business user ran reprot2 and found discrepancy/issues
then he has to contact IT to resolve discrepancy/issue.

Step 7: Check pegging and unpegging for open po lines

Note: System automatically does pegging and unpegging for open
po lines while executing update script, no need of any action by
user.
While updating the Old GPA# with New GPA#, Database trigger will
automatically triggers the updation of Unpegging the PO Line Qty from Old
GPA and Peg the PO Line Qty to New GPA.

Step 8: Run retro price program

Once the above steps are performed successfully and then Business user
should run the Retroactive Price Update on Purchasing Documents
program in Purchasing Responsibility for the specific Supplier, Site and
New GPA Number.

8.1

What is retro price program?

Prices for items on blanket agreements can change over the effective
MD050 Quarterly PO Price Update Program

Introduction

Company Confidential - For internal use only

period of an agreement as a result of ongoing negotiations between

the buyer and the supplier. In fact, it is common practice in certain
industries to initiate and execute against an agreement with an interim
price. A firm price may get finalized several months into the life of the
agreement. In these scenarios it is possible that the updated price is
applicable retroactively. Oracle Purchasing allows buyers to make price
changes on global blanket agreements and on blanket agreements.
With 11.5.10, Oracle Purchasing can optionally update prices on orders
(Blanket Releases & Standard POs) to reflect the latest agreement
price.

8.2

Profile Option Setup

Note: VeriFone already set this profile option to OPEN RELEASES at

Site Level. So, no need to change any setup.

User Profile Name: PO: Allow Retroactive Pricing of Pos

Profile Option Name: PO_ALLOW_RETROPRICING_OF_PO

Possible Values for the Profile option: blank, Never, Open Releases,
All Releases

Profile option 'PO: Allow Retroactive Pricing of POs' must be set to

determine if blanket releases and standard purchase orders can be
mass updated with retroactive price change(s) entered on their
corresponding Blanket Agreement. If this profile is not set or is set to
Never, the 'Retroactive Price Update of Purchasing Documents'
concurrent program will not update any Releases/Standard POs.

8.3

Archive Mode

In the Document Types Form, the Archive on for Standard POs and
Releases must be set to 'Approve'.

If the profile option PO: Allow Retroactive Pricing of Pos is set to 'All
Releases', then retroactive pricing will be performed on all releases, if
the archive mode for that operating unit is set to Approve.

Navigation:

Purchasing Responsibility

Setup > Purchasing > Document Types

MD050 Quarterly PO Price Update Program

Introduction

Company Confidential - For internal use only

8.4

Methods of updating the Retroactive Pricing

Once the Blanket Agreement line has been updated with a new price,
the Retroactive Price Update process will update the associated
Blanket Releases with the new price.
If the Global Blanket Agreement line has been updated with a new
price, then Retroactive Price Update process will update the
associated Standard Purchase Order with the new price.

8.5

Input:

The Retroactive Price Update on Purchasing Documents program will

have the following parameters:

Note: We advise to run the retro program only by with the

below parameters

Supplier Name

Supplier Site

New GPA Number

Supplier (Required)

Enter or select the supplier whose pricing needs to be updated.

This
must be a supplier that is currently in the system.

Supplier Site (Optional)

Enter or select the supplier site.

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Blanket Agreement Number (Optional) = New GPA

Number

Enter a specific blanket agreement number for which you want the
pricing updated.

Item Range (Optional)

Enter a range of item numbers for which you want the pricing
updated.

Category Range (Optional)

Enter a range of categories for which you want the pricing

updated.

Date From (Optional)

Specify a date to identify releases or standard purchase orders to

be
updated. The release shipment needby date should be on or after
the
specified date. If needby date is not available, the release
shipment
creation date will be used.

Communicate Updates (Optional)

Yes or No

8.6

Output

Updated PO of Approved Status will have the PO document in pdf

format send to Buyer's email account.

Step 9: Audit (to verify the price update for New GPA open
pos)
Once the Retro price update program completed normal, business user
should verify the price update for new GPA open pos by using BO Report2
(Before & after Retro price update details for GPA.Rep) with New GPA
Number and supplier Name (Last Name, First Name).
9.1 Discrepancy in Report2 (Before & After Retro price
update.Rep)
If any discrepancy in po price then business user has to contact IT to
resolve issue.
.

MD050 Quarterly PO Price Update Program

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Open Issues
Closed Issues
1. If the GPA is not in Approval Status (In Progress), what would be the
expected behaviors when running the Update Script or Retroactive
Price Update on Purchasing Documents program?
Ans) Retro pricing program GPA number parameter LOV will not populate
the In-Progress GPA number, only approved GPA number can be selected
2. I just want to emphasize that the Specific Buyer when update Old GPA
Number with New GPA Number and GPA Line Number in specific
Purchasing Org for all open PO lines is based on the "Buyer" as found
in the PO. Please see attached Buyer.xls
Ans) Yes, our update script will work as you described
3. When the PO Lines Pegged to GPA "A" with no price different, running
Retroactive Price Update on Purchasing Documents program on GPA
"A" will not "reupdate" the Price and send it through the Approval loop.
Ans) NO
4. What is the function on the Communicate Update in Retroactive Price
Update on Purchasing Documents program?
Ans) indicate if you want the updated releases or purchase orders to be
communicated to the supplier. If communicate=Yes the updated document
will be communicate to the supplier. The communication method is
determined by the Supplier Notification Method setting of the supplier
site.
5. I am interested in the Category in the Retroactive Price Update on
Purchasing Documents program. What type of Category is this
referring to? Purchasing Category?
Ans) Yes it is referring Purchasing category, we advice to run the retro
program only by the below parameters.

Supplier Name
Supplier Site
New GPA

Estimates

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Recommended Staffing
The table below represents the maximum number of resources assigned to
each development task.

Development Task

Functional

Technical

Create Functional Design

Create Technical Design
Perform Development
Develop Unit Test Scripts
Develop Regression/Integration Test
Scripts
Perform Unit Tests
Perform Regression/Integration Tests
Create ERR Doc, PVCS folders and
Check-in files

MD050 Quarterly PO Price Update Program

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User Procedure
Step1: Create new GPA (will be created by the business user)
Step2: Run BO Report1 (Discrepancy B/W old/New GPA.Rep) with the following parameters
1. Old GPA Number
2. New GPA Number
3. Buyer Name
Sample Input

Sample Output

Note: This report should not return any records in good case; if it returns then business user
needs to be correct the new GPA.
Step3: Run BO Report2 (Before & after Retro price update) with the following parameters
1. Old/New GPA Number
2. Buyer Name
Sample Input

Quarterly PO Price Update Program

298309470.doc

Company Confidential - For internal use only

13

Sample Output

Note1: This report should be run with old GPA number and buyer name before requesting
update script. Business user need to verify the PO#, PO Line, Items etc details before for
update script
Note2: This report returns all open po details including po distributions which were
associated with old GPA number and buyer name.
Note3: This report should not return any rows for new GPA number before update script.
Step4: Request IT to run update script with the following parameters
1. Old GPA Number
2. New GPA Number
3. Buyer Name
Sample Input

Step5: IT creates a DCC to run update script.

Step6: IT inform business user through email after executed the update script in Production
(EBIZ)

Step7: Run BO Report2 ((Before & after Retro price update) with following parameters
MD050 Quarterly PO Price Update Program

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1. New GPA Number

2. Buyer Name
Note1: This report should be run with new GPA number and buyer name after update script
Note2: This report returns all open po details including po distributions which were newly
associated with new GPA number
Note3: This report should not return any rows for old GPA number after update script.
Step8: Check pegging and unpegging for open po lines
Step9: Run retro price program with the following parameters
Note: We advise to run the retro program only by the below parameters
1. Supplier Name
2. Supplier Site
3. New GPA Number.
Sample Input

MD050 Quarterly PO Price Update Program

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Step11: Run BO Report2 ((Before & after Retro price update) with following parameters to
verify price update for all the associated open po lines
1. New GPA Number
2. Buyer Name

Addendum1:

Create Concurrent Request for PO Price Update Script

Requirement:
an update script.

VeriFone business wants to avoid DCC execution process for

VeriFone business has been spending 3 to 4 hours for each DCC

execution for every quarter, during this process, business need to
verify/validate the date accuracy before request for each DCC
execution.
Proposed Solution: Create concurrent request to avoid DCC execution
process.
Concurrent Request Name: XXVFI: Quarterly PO Price Update.
Input Parameters: Old GPA Number, New GPA Number and Buyer
Name.
In Scope: Concurrent request should be available under IHQ
purchasing
responsibility only.
Developer Details:
1. All the input parameters should be LOV type.
2. All the approved GPAs should be listed in LOV to select.
3. Active buyer names should be listed in LOV to select.
Note: For testing purpose, create concurrent request under IHQ purchasing super
user, till we confirm appropriate responsibility from business user.
Latest Update Script:

GPAupdatescriptforvincent82009.txt

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Addendum2:

Update Script Mondification.

Requirement:

VFI Business user wants to update duplicate items

when one of the items in cancelled status.

Proposed Solution:

Modify update script.

As per the VFI business user (Vincent) request the following condition has
been incorporated in the update script.
If the items are duplicated and cancelled flag=N then curser shouldnt
update any of the duplicated items, in other words, curser should come
out from the loop and it should populate message Item xxxx Duplicated
in new GPA.
And
If the items are duplicated and cancelled flag=Y then curser should
update one of the items.

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