This blog provides a complete step-by-step walkthrough of the Oracle EBS Sourcing Negotiation process, demonstrating how an RFQ is created, published, evaluated, awarded, and converted into a Purchase Order.
I have also created a youtube video for this tutorial
The flow begins with a business requirement raised through a
Purchase Requisition, followed by the initiation of a sourcing negotiation by
the Procurement team.
I have also published a separate blog covering OracleFusion Sourcing Negotiation – Step-by-Step Guide, which you may refer to
for Fusion Cloud users.
Introduction to Supplier Sourcing
Oracle EBS Sourcing Negotiation is a key feature within
Oracle R12 Soucing. It supports strategic sourcing by helping organizations
obtain the best pricing, terms, and conditions through RFIs, RFQs, auctions,
and structured supplier interactions.
It streamlines the entire process—from engaging suppliers to evaluating
responses and awarding contracts.
Negotiations
The following are the standard negotiation types available.
For this walkthrough, I will use RFQ.
|
Type |
Details |
|
RFI |
Used to
collect information and qualify suppliers. RFIs focus on supplier
capabilities, experience, and offerings—not pricing or
quantities. |
|
RFQ |
A formal
document requesting quotations from one or more suppliers. RFQs support
complex requirements, multiple negotiation rounds, and can be blind (only
buyer sees responses) or sealed (responses hidden from both
sides until opened). |
|
Auction |
A competitive
bidding event where suppliers submit bids within a defined timeframe. |
Detailed Testing Scenario – Step-by-Step
Step 1: Create a Negotiation
Responsibility: Sourcing Super User
Navigation: Sourcing Home Page → Quick Links → RFQ
Step 2: Define Header Details
Under Terms:
- Bill-To
location
- Ship-To
location
- Payment
terms
- Currency
- Close
Date
Ensure all mandatory fields are completed.
Step 3: Add Requirements (Two-Part Evaluation Example)
Navigate to the Requirements tab and select Add Section.
You may:
- Select
predefined sections (e.g., General)
- Create
custom sections (Technical / Commercial) for a two-part RFQ
For this test case, we will use the General
section.
Example Requirement Questions:
- How
many years of experience do you have in manufacturing tees and
pipe-related components?
- Will
you provide all required technical documentation?
- Are
you ISO certified?
Define:
- Target
Score (e.g., 10)
- Knockout
Score (if applicable)
This enables structured technical evaluation.
Add requirement/question
· How many years of experience of manufacturing Tees and other
Pipes related parts
We will define few more
Target score 10, knockout score means,
· Will you be able to provide all the technical documentations
Are you ISO Certified?
Requirements are now structured.
Step 4: Add Lines
Navigate to the Lines tab.
You can:
- Add
lines manually
- Import
from Requisition
- Upload
via file
In this scenario, we will add lines from an approved
Purchase Requisition.
Select Add → From Requisition
Review and confirm lines.
Lines are now successfully added to the negotiation.
Select add
Clear Create button to add lines to Negotiation
Lines are successfully added to negotiation
Step 5: Control Tab Setup
Review negotiation controls carefully.
⚠ Important:
If you want the ability to close the negotiation before the Close Date, ensure
the following is enabled:
✔ Allow manual close before
Close Date
This avoids issues later during the award stage.
Step 6: Add Suppliers
Navigate to the Suppliers tab.
- Search
and add suppliers
- Apply
selection
I searched and added 2 suppliers
Select
Apply button
Before publishing:
✔ Ensure supplier contact
information is updated
✔ Verify email addresses
If contacts are missing, system validation will prevent
publishing.
Review all the header lines and all the details and submit
for approval
Step 8: Publish Negotiation
Click Publish.
Suppliers will receive:
- Email
notification
- iSupplier
Portal notification
Now wait for supplier responses.
Surrogate Quote – When Supplier Portal Is Not Used
Oracle EBS (and Fusion) provides the Surrogate Quote
feature.
Use this when:
- iSupplier
is not implemented
- Supplier
does not have portal access
- Supplier
submits quotation via email
To Create Surrogate Quote:
- Select
Create Surrogate Quote
- Enter:
- Quote
Received Date
- Quote
Valid Until Date
- Responses
to requirement questions
- Enter
quoted prices for each line
- Validate
and Submit
Repeat for each supplier.
Select Create Surrogate Quote action
Once all the details provided, validate and submit the Reponses
Repeat for each supplier.
Step 9: Monitor Negotiation
From Sourcing Home Page → Monitor
You can:
- Track
supplier responses
- Review
technical scores
- Compare
pricing
To complete the award process, the negotiation must first be
closed.
A negotiation can close automatically on the Close Date, or
the buyer can close it manually once all responses are received.
In this case, I forgot to enable the option under the Control
tab:
Allow manual close before the Close Date
Because of this, I could not close the negotiation. I
created an amendment, enabled the option, and submitted it for approval.
After an amendment is approved, suppliers must resubmit
their responses. I recreated the surrogate responses for both suppliers.
Once all responses were updated, the buyer closed the
negotiation and proceeded with the award.
Step 11: Close Negotiation
Buyer can close negotiation:
- Automatically
(on Close Date)
- Manually
(if enabled)
Action → Close RFQ
Step 12: Evaluate & Compare
Use:
Compare Requirements
Auto Award Recommendation
Oracle provides system-generated award suggestions based on:
- Price
- Requirement
scores
- Commercial
factors
Buyer and evaluation team can review and override if needed.
Select Accept Recommendation (if applicable).
Select all from the left above screenshot and then choose
Compare Requirements
Step 13: Complete Award
Navigate to:
Negotiation → Actions → Complete Award
Submit for approval.
Step 14: Create Purchase Order
During award completion:
- Review
award summary
- Choose
whether to initiate approval
- Submit
for PO creation
Purchase Order is generated from awarded lines.
Conclusion
This completes the end-to-end walkthrough of the Oracle EBS
Sourcing Negotiation process — from requisition to Purchase Order creation.
Oracle EBS Sourcing provides:
- Structured
supplier evaluation
- Transparent
bidding
- Technical
and commercial scoring
- Controlled
award governance
- Seamless
integration with Purchasing
If you have any feedback or questions, feel free to share
your thoughts.
For more detailed technical reference, you may consult the official Oracle documentation
I have also published a separate blog covering OracleFusion Sourcing Negotiation – Step-by-Step Guide, which you may refer to for Fusion Cloud users.