PeopleSoft Enterprise Purchasing 9.1 PeopleBook

PeopleSoft Enterprise Purchasing 9.1 PeopleBook

PeopleSoft Enterprise Purchasing

9.1 PeopleBook

March 2011

PeopleSoft Enterprise Purchasing 9.1 PeopleBook

SKU fscm91spog-b0311

Copyright © 1992, 2011, Oracle and/or its affiliates. All rights reserved.

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Contents

Preface

PeopleSoft Enterprise Purchasing Preface ......................................................................................... xxxvii

PeopleSoft Products ................................................................................................................................. xxxvii

PeopleSoft Application Fundamentals ................................................................................................... xxxviii

Pages With Deferred Processing ............................................................................................................... xxxix

PeopleSoft Enterprise Purchasing Default Hierarchies ............................................................................ xxxix

PeopleBooks and the PeopleSoft Online Library ..................................................................................... xxxix

Common Elements Used in This PeopleBook ............................................................................................... xl

Part 1

Setting Up PeopleSoft Purchasing

Chapter 1

Getting Started With PeopleSoft Purchasing .............................................................................................. 3

PeopleSoft Purchasing Business Processes

PeopleSoft Purchasing Integrations

.................................................................................................... 3

................................................................................................................ 4

PeopleSoft Purchasing Implementation .......................................................................................................... 8

Chapter 2

Using User-Definable Fields ....................................................................................................................... 11

Understanding User-Definable Fields

Setting Up User-Definable Fields

........................................................................................................... 11

................................................................................................................. 12

Chapter 3

Defining PeopleSoft Purchasing Business Units and Processing Options ............................................. 13

Understanding Business Units in PeopleSoft Purchasing

Establishing PeopleSoft Purchasing Business Units

............................................................................. 13

..................................................................................... 15

Pages Used to Establish PeopleSoft Purchasing Business Units ............................................................ 15

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Creating PeopleSoft Purchasing Business Units

Defining RFQ Required Rules

.................................................................................... 17

............................................................................................................... 20

Defining Standard Comments

Defining Matching Options

................................................................................................................ 22

.................................................................................................................... 22

Defining Dispatch Options

Setting Up VAT Defaults

..................................................................................................................... 22

....................................................................................................................... 26

Copying VAT Default Setup

Creating Business Unit Options

.................................................................................................................. 27

............................................................................................................. 27

Defining Transaction Document Autonumbering Options

Establishing Change Options and Approval Rules

.................................................................... 35

....................................................................................... 36

Pages Used to Establish Change Options and Approval Rules ............................................................... 36

Defining Purchase Order Change Options and Approval Requirements ............................................... 36

Defining Requisition Change Options and Approval Requirements

Establishing Purchasing Processing Options

..................................................... 43

................................................................................................ 46

Pages Used to Establish Purchasing Processing Options ........................................................................ 46

Defining Purchasing Processing Options ............................................................................................... 47

Defining Transaction Dispatch Methods

Defining Freight Options

................................................................................................ 52

....................................................................................................................... 54

Defining POA Settings ........................................................................................................................... 54

Defining VAT Service Treatment Setup ................................................................................................ 55

Defining Reason Codes for Change Requests and Change Orders ......................................................... 56

Preparing PeopleSoft Purchasing VAT Environments ................................................................................. 57

Chapter 4

Defining Purchasing Item Information ..................................................................................................... 61

Understanding Purchasing Item Information ................................................................................................ 61

Common Elements Used in This Chapter ............................................................................................... 61

Setting Up Item Catalogs ....................................................................................................................... 63

Working with Market Codes .................................................................................................................. 65

Defining Purchasing Item Categories

Understanding Item Categories

........................................................................................................... 67

.............................................................................................................. 67

Pages Used to Define Purchasing Item Categories ................................................................................. 68

Defining Item Categories ....................................................................................................................... 69

Updating Catalog Trees .......................................................................................................................... 72

Defining Item Category Control Options ............................................................................................... 72

Defining Vendor Sourcing Priorities for Item Categories

Defining Purchasing Item Attributes

..................................................................... 73

............................................................................................................ 74

Understanding Order Multiple Rounding Rules .................................................................................... 74

Pages Used to Define Purchasing Item Attributes .................................................................................. 75

Defining Purchasing Item Attributes ...................................................................................................... 78

Entering Purchasing Item Specifications

Defining Purchasing Controls

............................................................................................... 81

................................................................................................................ 82

iv Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Defining Purchasing Business Unit Attributes ....................................................................................... 86

Defining Attributes and Priorities for Purchasing Item Vendor Relationships ...................................... 86

Defining Purchasing Item Vendor UOM and Pricing Information

Entering Item Vendor UOM Conversion Rate Changes

........................................................ 91

........................................................................ 94

Updating Purchase Orders with Item Vendor UOM Conversion Rate Changes

Updating Item Vendor Unit-of-Measure Conversion Rates

................................... 96

......................................................................... 98

Page Used to Update Item Vendor Unit-of-Measure Conversion Rates ................................................. 98

Updating Item Vendor Unit of Measure Conversion Rates .................................................................... 98

Capturing Item Miscellaneous Charges ........................................................................................................ 99

Pages Used to Capture Item Miscellaneous Charges .............................................................................. 99

Assigning Miscellaneous Charges and Templates to Items and Categories

Setting Up Item Vendor Price Adjustment Rules

.......................................... 99

....................................................................................... 101

Understanding Item Vendor Price Adjustments ................................................................................... 101

Pages Used to Set Up Item Vendor Price Adjustment Rules ................................................................ 102

Defining Item Vendor Price Adjustments ............................................................................................ 102

Defining Item Vendor Price Adjustment Details ................................................................................. 103

Updating Standard Prices and Business Unit Standard Prices

Understanding Price Updates

.................................................................... 104

............................................................................................................... 104

Understanding the Price Update Process ............................................................................................. 105

Pages Used to Update Standard Prices and Business Unit Standard Prices .......................................... 106

Using Standard Price and Business Unit Standard Price Updating Online

Using Standard Price and Business Unit Price Batch Updating

.......................................... 106

.......................................................... 108

Running the Price Update Process ....................................................................................................... 109

Selecting Vendors Based on Item Ship To and Item Vendor Locations .................................................... 110

Pages Used to Select Vendors Based on Item Ship To and Item Vendor Locations ............................ 110

Defining Priority Vendors by Item Ship To Location

Creating Purchasing Kits

.......................................................................... 110

............................................................................................................................ 112

Understanding Purchasing Kits ............................................................................................................ 112

Page Used to Create Purchasing Kits .................................................................................................... 112

Chapter 5

Defining Miscellaneous Charges and Landed Costs .............................................................................. 113

Understanding Miscellaneous Charges

Defining Miscellaneous Charge Defaults

....................................................................................................... 113

................................................................................................... 114

Chapter 6

Using Workflow ........................................................................................................................................ 117

Understanding PeopleSoft Purchasing Workflow ....................................................................................... 117

Setting Up the Approval Framework for PeopleSoft Purchasing ................................................................ 118

Understanding the Approval Framework Setup Steps .......................................................................... 118

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Setting Up the Approval Framework for PeopleSoft Purchasing ......................................................... 120

Pages Used to Set Up Approval Framework in PeopleSoft Purchasing ............................................... 126

Setting Up Email Approvals for PeopleSoft Purchasing ...................................................................... 129

Setting Up PeopleTools Workflow Technology for PeopleSoft Purchasing ............................................... 130

Understanding PeopleTools Workflow Technology Setup for PeopleSoft Purchasing ........................ 130

Setting Up Approvals in PeopleTools Workflow Technology ............................................................ 132

Setting Up EDX Exception Workflow .................................................................................................. 135

Setting Up Notification in PeopleTools Workflow Technology .......................................................... 136

Issuing Requisition Sourcing Workflow Notifications ............................................................................... 138

Page Used To Issue Requisition Sourcing Workflow Notifications ..................................................... 138

Issuing Purchase Order Cancellation Workflow Notifications ................................................................... 138

Page Used to Issue Purchase Order Cancellation Workflow Notifications .......................................... 138

Issuing Contract Expiration and Exceeding Maximum Workflow Notifications ........................................ 138

Page Used to Issue Contract Expiration and Exceed Maximum Workflow Notifications ................... 139

Using Purchase Order Acknowledgement Alert Workflow Notifications ................................................... 139

Pages Used to Use Purchase Order Acknowledgement Alert Workflow Notifications ........................ 140

Using Item Loader Exception Workflow Notifications ............................................................................... 141

Pages Used to Use Item Loader Exception Workflow Notifications .................................................... 143

Viewing and Approving Item Exceptions ............................................................................................ 144

Using Rebate Manager Workflow Notification ........................................................................................... 144

Prerequisites ......................................................................................................................................... 144

Pages Use to Use Rebate Manager Workflow Notifications ................................................................ 145

Using Receipt Quantity Change Workflow Notifications ........................................................................... 145

Prerequisites ......................................................................................................................................... 146

Pages Use to Use Receipt Quantity Change Workflow Notifications .................................................. 146

Using Settlement Manager Workflow Notifications ................................................................................... 146

Prerequisites ......................................................................................................................................... 147

Pages Use to Use Settlement Manager Workflow Notifications .......................................................... 147

Chapter 7

Using Default Hierarchies ......................................................................................................................... 149

Understanding the PeopleSoft Purchasing Default Hierarchy

Purchasing Transaction Default Hierarchy

.................................................................... 149

.......................................................................................... 149

Requisition Default Hierarchy ............................................................................................................. 154

Purchase Order Default Hierarchy ....................................................................................................... 155

Purchasing Item Default Hierarchy ...................................................................................................... 155

Purchasing ChartField Default Hierarchy ............................................................................................ 161

Understanding the UOM Conversion Hierarchy

UOM Defaulting

........................................................................................ 161

.................................................................................................................................. 162

UOM Conversion Rate Defaults .......................................................................................................... 164

Understanding the Matching Default Hierarchy ......................................................................................... 165

Understanding the Vendor Location Hierarchy and Multicurrency Pricing ............................................... 167

vi Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

High-Level Controls Implementation: Item Ship To Vendor Location and Item Region Vendor Location

Overview ............................................................................................................................................ 169

Item Ship To Vendor Location Setup ................................................................................................... 169

Item Region Vendor Location Setup ..................................................................................................... 170

Mid-Level Control Implementation: Ship To Vendor Location and Region Vendor Location Vendor

Order Location Overview .................................................................................................................. 171

Ship To Vendor Location Vendor Order Location Setup ..................................................................... 171

Region Vendor Location Vendor Order Location Setup ....................................................................... 172

Low-Level Control Implementation: Defining Item-Vendor Relationships Overview ........................ 173

Zero-Level Control Implementation Overview ..................................................................................... 174

Understanding Multicurrency Conversions ................................................................................................ 174

Understanding VAT Drivers, VAT Driver Keys, and the Defaulting Hierarchy for VAT Defaults .......... 177

Chapter 8

Using Commitment Control ..................................................................................................................... 179

Understanding Commitment Control in PeopleSoft Purchasing

Delivered Source Transaction Types for Purchasing

................................................................ 179

........................................................................... 180

Commitment Control Budget Processor Process in PeopleSoft Purchasing

Open Period

........................................ 182

.......................................................................................................................................... 183

Liquidation Method

Document Tolerances

.............................................................................................................................. 184

........................................................................................................................... 184

Budget Pre-Check ................................................................................................................................. 184

Budget Exceptions ................................................................................................................................ 185

Budget Overrides .................................................................................................................................. 186

Effects of Changes to Budget-Checked Transactions .......................................................................... 187

Commitment Control and PeopleSoft Purchasing Close Processes

Budget Checking Receipt Accruals

..................................................... 189

...................................................................................................... 189

Common Elements Used in This Chapter ............................................................................................. 190

Using Partial and Final Liquidation ............................................................................................................ 192

Reversing Partial or Final Liquidation ................................................................................................. 194

Budget Checking After Partial or Final Liquidation ............................................................................ 195

Running Entry Events After Partial or Final Liquidation

Budget Checking Requisitions

.................................................................... 195

.................................................................................................................... 195

Pages Used to Budget Check Requisitions ........................................................................................... 196

Budget Checking Requisitions Using the Commitment Control Budget Processor Process ............... 196

Budget Checking Requisitions Using Online Pages

Budget Checking Purchase Orders

............................................................................ 197

............................................................................................................. 197

Pages Used to Budget Check Purchase Orders ..................................................................................... 198

Budget Checking Purchase Orders Using the Commitment Control Budget Processor Process ......... 199

Budget Checking Purchase Orders Using Online Pages ...................................................................... 199

Budget Checking Procurement Cards ......................................................................................................... 200

Pages Used to Budget Check Procurement Cards ................................................................................. 201

Budget Checking Procurement Cards During the Statement Load Process ......................................... 202

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Budget Checking Procurement Cards Using the Reconcile Statement - Procurement Card Transactions

Page ................................................................................................................................................... 202

Running Budget Period-End Processes ...................................................................................................... 202

Understanding Budget Period-End Processing .................................................................................... 203

Pages Used to Run Budget Period-End Processes ................................................................................ 204

Rolling Over Purchase Orders at Budget Period-End ................................................................................. 204

Understanding the Purchase Order Rollover Process ........................................................................... 205

Pages Used to Rollover Purchase Orders .............................................................................................. 206

Creating a Data Set for Retrieval by the Purchase Order Rollover Workbench

Selecting and Qualifying Purchase Orders for Rollover

.................................. 207

...................................................................... 210

Reviewing Purchase Order Details

Running the PO Rollover1 Process

...................................................................................................... 213

...................................................................................................... 213

Running the PO Rollover2 Process ...................................................................................................... 214

Running the PO Roll Open Encumbrance Process .............................................................................. 215

Running the Non Qualified PO Listing Process .................................................................................... 215

Establishing Purchasing ChartField Security ............................................................................................... 216

Chapter 9

Running Document Tolerances ............................................................................................................... 219

Understanding Document Tolerances ......................................................................................................... 219

Setting Up Document Tolerances ................................................................................................................ 219

Running Document Tolerances with Budget Checking .............................................................................. 220

Page Used to Run Document Tolerances with Budget Checking ......................................................... 220

Checking Document Tolerances ........................................................................................................... 220

Running Document Tolerances Without Budget Checking ........................................................................ 221

Page Used to Run Document Tolerances Without Budget Checking ................................................... 221

Reviewing Document Tolerance Exceptions and Overrides ...................................................................... 221

Pages Used to Review Document Tolerance Exceptions and Overrides .............................................. 222

Viewing and Overriding Document Tolerance Exceptions ................................................................. 222

Viewing Document Tolerance Override History ................................................................................. 223

Chapter 10

Using Entry Events ................................................................................................................................... 225

Understanding Entry Events in PeopleSoft Purchasing

Setting Up PeopleSoft Purchasing Entry Events

.............................................................................. 225

........................................................................................ 229

Pages Used to Set Up PeopleSoft Purchasing Entry Events ................................................................. 230

Enabling Entry Events for PeopleSoft Purchasing ............................................................................... 230

Selecting Entry Event Defaults ............................................................................................................ 231

Generating PeopleSoft Purchasing Entry Events ........................................................................................ 231

Page Used to Generate PeopleSoft Purchasing Entry Events ............................................................... 231

viii Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Generating PeopleSoft Purchasing Entry Events ................................................................................. 232

Drilling Down to the General Ledger to View Entry Event Journal Entries ............................................... 232

Pages Used to Drill Down to the General Ledger to View Entry Event Journal Entries ...................... 233

Part 2

Using Procurement Cards

Chapter 11

Managing Procurement Cards ................................................................................................................ 237

Understanding the Procurement Card Business Process

Common Elements Used in This Chapter

............................................................................. 238

............................................................................................ 239

Setting Up Procurement Card Installation Options .................................................................................... 242

Page Used to Set Up Procurement Card Installation Options ............................................................... 242

Establishing Procurement Card Security .................................................................................................... 242

Understanding Procurement Card Security .......................................................................................... 243

Pages Used to Establish Procurement Card Security ............................................................................ 243

Assigning Users to Procurement Card Roles ....................................................................................... 245

Register Procurement Card Roles ........................................................................................................ 245

Assigning Access Rights to Procurement Card Roles ......................................................................... 246

Assigning Proxy Roles for Different Procurement Cards

Setting Up Universal SpeedCharts

.................................................................... 248

....................................................................................................... 250

Assigning Universal SpeedCharts to Multiple Procurement Cards

Defining Cardholder Profile

..................................................... 250

........................................................................................................................ 251

Understanding the Personal Employee EIP .......................................................................................... 252

Pages Used to Define Cardholder Profile ............................................................................................. 253

Viewing Cardholder Personal Data

Defining Cardholder Card Data

...................................................................................................... 254

........................................................................................................... 255

Defining Vendor Card Vendors ............................................................................................................ 256

Defining Proxies ................................................................................................................................... 256

Defining Default Accounting Distributions ......................................................................................... 257

Restricting Cardholder Purchases by Commodity Code ...................................................................... 258

Defining Card Issuers .................................................................................................................................. 258

Pages Used to Define Card Issuers ....................................................................................................... 258

Defining Procurement Card Issuers

Defining Preferred Vendors

..................................................................................................... 259

........................................................................................................................ 262

Pages Used to Define Preferred Vendors .............................................................................................. 263

Defining Preferred Vendors ................................................................................................................. 263

Maintaining a List of Preferred Vendors

Defining Preferred UOM

.............................................................................................. 264

............................................................................................................................ 264

Pages Used to Define Preferred UOM .................................................................................................. 264

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Defining Preferred UOM ..................................................................................................................... 265

Maintaining Preferred UOM ................................................................................................................ 265

Defining MCC Blocked .............................................................................................................................. 265

Pages Used to Define MCC Blocked .................................................................................................... 266

Defining Visa Transaction Type Codes ...................................................................................................... 266

Page Used to Define Visa Transaction Type Code ............................................................................... 266

Defining Procurement Card Mapping ......................................................................................................... 266

Pages Used to Define Procurement Card Mapping ............................................................................... 267

Setting Up Procurement Card Load Statement Options ............................................................................. 267

Page Used to Define Procurement Card Load Statement Options ........................................................ 267

Defining Load Statement Options ........................................................................................................ 267

Staging Procurement Card Statements Using PeopleSoft Integration Broker ............................................ 270

Staging Procurement Card Statements in a Flat File Format ...................................................................... 271

Using the Credit Card Data EIP ................................................................................................................... 271

Understanding the Credit Card Data EIP .............................................................................................. 271

Setting Up the Credit Card Data EIP .................................................................................................... 271

Using the Procurement Card Load EIP ........................................................................................................ 272

Understanding the Procurement Card Load EIP ................................................................................... 272

Pages Used to Use the Procurement Card Load EIP ............................................................................. 273

Using the Procurement Card Load EIP ................................................................................................. 273

Staging Standard Delivered Bank Format Statements ................................................................................ 274

Page Used to Stage Standard Delivered Bank Format Statements ....................................................... 274

Running the ProCard Data Loader Application Engine Process (PO_CCPCRDSTG)

Handling Statement Staging Errors

....................... 274

............................................................................................................ 276

Page Used to Handle Statement Staging Errors .................................................................................... 276

Handling Staging Errors ....................................................................................................................... 276

Loading Procurement Card Statements to Application Tables ................................................................... 276

Understanding the ProCard Load Statement Process ............................................................................ 276

Page Used to Load Procurement Card Statements to Application Tables ............................................ 280

Running the ProCard Load Statement Process .................................................................................... 280

Running the Bank Statement Workflow Application Engine Process (PO_CCSTMT_WF) ..................... 281

Page Used to Run the Bank Statement Workflow Application Engine Process ................................... 281

Reconciling Procurement Card Transactions Manually ............................................................................. 281

Pages Used to Reconcile Procurement Card Transactions Manually ................................................... 282

Reviewing and Approving Procurement Card Transactions ................................................................ 285

Defining Account Distributions ........................................................................................................... 289

Defining Statement Line Purchase Order Details ................................................................................ 289

Entering Statement Line Tax Information

Splitting Statement Lines

........................................................................................... 291

..................................................................................................................... 292

Using Distribution Templates .............................................................................................................. 292

Viewing VAT Line Information ........................................................................................................... 293

Running the Grace Period Has Expired Application Engine Process (PO_CCEXP_WF) ......................... 298

Page Used to Run the Grace Period Has Expired Application Engine Process .................................... 299

Resolving Disputed Transactions ............................................................................................................... 299

Pages Used to Resolve Disputed Transactions ..................................................................................... 299

x Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Viewing and Resolving Procurement Card Transaction Amount Disputes

Viewing the Statement Summary

......................................... 300

............................................................................................................... 300

Page Used to View the Statement Summary ......................................................................................... 301

Viewing the Statement Summary ......................................................................................................... 301

Staging Procurement Card Transactions for Voucher Processing .............................................................. 301

Page Used to Stage Procurement Card Transactions for Voucher Processing ...................................... 302

Running the Voucher Load Process ..................................................................................................... 302

Analyzing Procurement Card Information ................................................................................................... 303

Pages Used to Analyze Procurement Card Information ........................................................................ 304

Part 3

Using Vendor Rebates

Chapter 12

Understanding Vendor Rebates ............................................................................................................... 309

Understanding Vendor Rebates .................................................................................................................. 309

Chapter 13

Defining Vendor Rebate Agreements ...................................................................................................... 313

Understanding Vendor Rebate Agreement Statuses

Understanding Vendor Rebate Rule Types

................................................................................... 313

................................................................................................. 315

Prerequisites ................................................................................................................................................ 319

Defining Vendor Rebate Agreements ......................................................................................................... 320

Pages Used to Define Vendor Rebate Agreements ............................................................................... 321

Defining Rebate Agreements ............................................................................................................... 323

Defining Rebate Options ...................................................................................................................... 327

Updating Rebate Agreement VAT Details ........................................................................................... 330

Defining Rebate Rules ......................................................................................................................... 336

Dispatching Vendor Rebate Agreements .................................................................................................... 342

Understanding Vendor Rebate Agreement Dispatch ........................................................................... 342

Page Used to Dispatch Vendor Rebate Agreements ............................................................................. 343

Dispatching Vendor Rebate Agreements ............................................................................................. 343

Chapter 14

Generating Rebate Accruals .................................................................................................................... 345

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Understanding the Rebate Accrual Process

Generating Rebate Accruals

................................................................................................ 345

........................................................................................................................ 359

Page Used to Generate Rebate Accruals ............................................................................................... 360

Generating Rebate Accruals ................................................................................................................. 360

Chapter 15

Maintaining Vendor Rebate Agreement Association with Purchase Orders ...................................... 361

Understanding the Backdate Vendor Rebates Component Processes ........................................................ 361

Associating to, Dissociating from, and Modifying Associated Vendor Rebate Agreements Line by Line to

Purchase Orders Manually ....................................................................................................................... 362

Pages Used to Manually Associate to, Dissociate from, and Modify Associated Vendor Rebate

Agreements Line by Line to Purchase Orders Manually ................................................................... 362

Associating, Dissociating, and Modifying Vendor Rebate Agreements Line by Line to Purchase Orders

Manually ........................................................................................................................................... 363

Chapter 16

Managing Vendor Rebate Claims ........................................................................................................... 367

Understanding the Claims Management Business Process for Vendor Rebates

Prerequisites

........................................ 367

................................................................................................................................................ 375

Generating Vendor Rebate Claims ............................................................................................................. 375

Page Used to Generate Vendor Rebate Claims ..................................................................................... 375

Generating Vendor Rebate Claims

Printing a Vendor Rebate Claim

....................................................................................................... 375

................................................................................................................. 376

Page Used to Print a Vendor Rebate Claim .......................................................................................... 376

Notifying Rebate Managers of Claims ........................................................................................................ 376

Page Used to Notify Rebate Managers of Claims ................................................................................. 376

Notifying Rebate Managers of Claims

Using the Claims Management Workbench

................................................................................................. 377

............................................................................................... 377

Understanding the Claims Management Workbench ........................................................................... 377

Pages Used to Use the Claims Management Workbench ..................................................................... 378

Using the Claims Management Workbench

Reconciling Payments for Vendor Rebates

......................................................................................... 378

................................................................................................ 384

Page Used to Reconcile Payments for Vendor Rebates ........................................................................ 384

Reconciling Payments for Vendor Rebates .......................................................................................... 384

Maintaining Claims ..................................................................................................................................... 385

Understanding Change Processing for Claim Amounts ....................................................................... 385

Pages Used to Maintain Claims ............................................................................................................ 386

Maintaining Claims .............................................................................................................................. 387

Maintaining Claim Distributions

Reconciling Claims

.......................................................................................................... 389

..................................................................................................................................... 390

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Contents

Understanding Exception Processing ................................................................................................... 390

Pages Used to Reconcile Claims ........................................................................................................... 391

Reconciling Claim Details

Viewing Incoming Payments

................................................................................................................... 392

............................................................................................................... 394

Notifying Settlement Managers .................................................................................................................. 395

Page Used to Notify Settlement Managers ........................................................................................... 395

Notifying Settlement Managers ........................................................................................................... 395

Viewing Claim Settlement Information ...................................................................................................... 395

Page Used to View Claim Settlement Information ............................................................................... 396

Viewing Claim Settlement Information ............................................................................................... 396

Entering Claim Payments Manually ........................................................................................................... 396

Understanding the Manual Entry of Claim Payments .......................................................................... 397

Page Used to Enter Claim Payments Manually .................................................................................... 397

Entering Claim Payments Manually .................................................................................................... 397

Chapter 17

Analyzing Vendor Rebates ....................................................................................................................... 401

Understanding the Vendor Rebate Analysis Workbench

Defining Sales Organizations

........................................................................... 401

...................................................................................................................... 402

Page Used to Define Sales Organizations ............................................................................................. 403

Defining Sales Organizations ............................................................................................................... 403

Establishing Vendor Rebate Allocations

Prerequisites

.................................................................................................... 403

......................................................................................................................................... 403

Page Used to Establish Vendor Rebate Allocations .............................................................................. 404

Establishing Vendor Rebate Allocations .............................................................................................. 404

Analyzing Vendor Rebates ......................................................................................................................... 406

Pages Used to Analyze Vendor Rebates ............................................................................................... 407

Selecting Vendor Rebates for Analysis ................................................................................................ 410

Using the Vendor Rebate Analysis Workbench ................................................................................... 411

Viewing Accrued Rebate Details ......................................................................................................... 414

Viewing Rebate Threshold Analysis Information ................................................................................ 416

Viewing Not Received Purchase Order Information

Extracting Vendor Rebate Analysis to a File

........................................................................... 419

....................................................................................... 420

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

xiii

Contents

Part 4

Using Requisitions and Requests for Quotes

Chapter 18

Understanding Requisitions ..................................................................................................................... 425

Configuring Requisition Defaults ............................................................................................................... 425

Canceling Requisitions and Requisition Lines ........................................................................................... 426

Sourcing Requisitions Automatically .......................................................................................................... 427

Deleting Requisitions .................................................................................................................................. 427

Placing a Requisition On Hold ................................................................................................................... 428

Using Procurement Cards on Requisitions ................................................................................................. 430

Using PeopleSoft Maintenance Management Work Orders on Requisitions ............................................. 431

xiv

Chapter 19

Creating Requisitions Online ................................................................................................................... 433

Understanding the Requisition Business Process ....................................................................................... 433

Understanding How to Apply Procurement Contract Prices to Transactions .............................................. 435

Applying Contracts to Requisitions ...................................................................................................... 436

Contract Pricing for Requisitions and Purchase Orders ........................................................................ 436

Creating Requisition Header Information ................................................................................................... 440

Pages Used to Create Requisition Header Information ......................................................................... 441

Creating Requisition Header Information ............................................................................................ 445

Entering Requisition Header Defaults

Searching for Vendors

.................................................................................................. 453

.......................................................................................................................... 456

Viewing Address Details ...................................................................................................................... 456

Creating One-Time Requisition Default Addresses ............................................................................. 457

Applying Changes to Default Values in Requisition Header, Line, Schedule, and Distribution Fields

457

.

Entering Requisition Header Comments

Using Standard Comments

.............................................................................................. 458

................................................................................................................... 460

Viewing Currency Exchange Rate Information

Ordering Kit Items

................................................................................... 461

............................................................................................................................... 462

Ordering Items by Catalog

Viewing Item Details

................................................................................................................... 462

........................................................................................................................... 463

Viewing Qualifying Item Vendors

Defining Item Aliases

....................................................................................................... 463

........................................................................................................................... 463

Requesting Favorite Items .................................................................................................................... 464

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Creating Requisition Lines ......................................................................................................................... 464

Pages Used to Create Requisition Lines ............................................................................................... 465

Entering Requisition Line Information

Searching For Items

................................................................................................ 467

............................................................................................................................. 476

Entering Requisition Line Defaults ...................................................................................................... 476

Applying Default Value Changes for Requisition Line Fields to Existing Distributions .................... 477

Entering Requisition Line Details

Accessing Item Descriptions

........................................................................................................ 478

................................................................................................................ 482

Viewing Catalog Category Hierarchies

Viewing Buyer Contact Information

................................................................................................ 483

.................................................................................................... 483

Enter Line Comments ........................................................................................................................... 483

Accessing Item Specifications ............................................................................................................. 483

Searching for Item Categories

Creating Requisition Schedules

.............................................................................................................. 484

.................................................................................................................. 484

Pages Used to Create Requisition Schedules ........................................................................................ 485

Entering Requisition Schedule Information ......................................................................................... 487

Entering VAT Schedule Information

Entering Schedule Details

................................................................................................... 490

.................................................................................................................... 497

Creating a One-Time Use Address ....................................................................................................... 497

Using Pegging with Requisitions in PeopleSoft Purchasing ...................................................................... 498

Understanding Using Pegging With Requisitions in PeopleSoft Purchasing

Prerequisites

...................................... 498

......................................................................................................................................... 499

Pages Used to Peg Requisitions ............................................................................................................ 499

Using the Pegging Workbench ............................................................................................................. 499

Viewing Pegging Information .............................................................................................................. 501

Entering Distribution Information .............................................................................................................. 502

Pages Used to Enter Distribution Information ...................................................................................... 503

Entering Distribution Information ........................................................................................................ 503

Entering VAT Distribution Information .............................................................................................. 510

Copying an Existing Requisition to a New Requisition ............................................................................. 511

Pages Used to Copy an Existing Requisition to a New Requisition ..................................................... 512

Copying Existing Requisitions

Printing Requisition Templates

............................................................................................................. 512

................................................................................................................... 512

Understanding the Requisition Template SQR Report (PORQ011) .................................................... 513

Page Used to Print Requisition Templates ............................................................................................ 513

Previewing and Printing Requisitions ......................................................................................................... 513

Pages Used to Preview and Print Requisitions ...................................................................................... 513

Previewing Requisitions

Printing Requisitions

....................................................................................................................... 514

............................................................................................................................ 514

Chapter 20

Using the Requisition Loader .................................................................................................................. 515

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Understanding the Purchasing Requisition Loader Application Engine Process (PO_REQLOAD)

Defining Purchasing Requisition Loader System Sources

......... 515

................................................................... 516

Loading Requisitions .................................................................................................................................. 520

Page Used to Load Requisitions ............................................................................................................ 520

Running the Purchasing Requisition Loader Process ........................................................................... 521

Using the Purchase Order Requisition EIP ................................................................................................. 523

Understanding the Purchase Order Requisition EIP ............................................................................. 523

Pages Used to Use the Purchase Order Requisition EIP ....................................................................... 523

Using the Purchase Order Requisition EIP ........................................................................................... 524

Correcting Purchasing Requisition Loader Process Errors ......................................................................... 525

Understanding the Purchasing Requisition Loader Error Processing ................................................... 525

Pages Used to Correct Purchasing Requisition Loader Process Errors ................................................. 526

Reviewing and Correcting Purchasing Requisition Loader Process Data Errors

Viewing and Entering Requisition Comments

................................ 527

..................................................................................... 528

Entering or Editing Override Address Information

Updating Direct Shipment Information

.............................................................................. 529

...................................................................................................... 529

Understanding the Direct Shipments Update Application Engine Process (PO_REQDROP) ............. 529

Page Used to Update Direct Shipment Information .............................................................................. 531

Running the Direct Shipments Update Process

Purging Requisition Load Requests

.................................................................................... 531

............................................................................................................ 531

Understanding the Purge Requisition Load Request Application Engine Process (PO_RLRQPRG) .. 531

Page Used to Purge Requisition Load Requests ................................................................................... 531

Running the Purge Requisition Load Request Process ........................................................................ 532

Chapter 21

Approving Requisitions ............................................................................................................................. 535

Understanding Requisition Approvals ......................................................................................................... 535

Approving Requisitions With the Approval Framework ............................................................................. 536

Pages Used to Approve Requisitions With Approval Framework ........................................................ 542

Performing Approval Tasks for Multiple Requisitions ......................................................................... 543

Performing Approval Tasks for an Individual Requisition ................................................................... 546

Viewing Details About Requisition Line Items .................................................................................... 550

Approving Requisitions With PeopleTools Workflow Technology ............................................................ 550

Understanding Requisition Approvals With PeopleTools Workflow Technology ............................... 551

Pages Used to Approve Requisitions With PeopleTools Workflow Technology ................................. 554

Approving Requisition Amounts .......................................................................................................... 555

Approving Requisition ChartFields ...................................................................................................... 557

Chapter 22

Tracking Requisition Changes ................................................................................................................. 561

xvi Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Understanding Requisition Change Tracking .............................................................................................. 561

Pages Used to Track Requisition Changes ............................................................................................ 561

Tracking Requisition Changes Online .................................................................................................. 562

Reviewing Requisition Change History ...................................................................................................... 563

Pages Used to Review Requisition Change History ............................................................................. 563

Chapter 23

Using the Requester's Workbench .......................................................................................................... 565

Understanding the Requester's Workbench ................................................................................................. 565

Prerequisites ................................................................................................................................................. 565

Using the Requester's Workbench ............................................................................................................... 566

Pages Used to Use the Requester's Workbench .................................................................................... 566

Searching for Requisitions ................................................................................................................... 567

Using the Requester's Workbench ........................................................................................................ 569

Viewing Requisition Lines ................................................................................................................... 572

Viewing Requisition Schedules ........................................................................................................... 572

Viewing Processing Results ................................................................................................................. 573

Chapter 24

Closing Requisitions ................................................................................................................................... 575

Understanding the Close Requisitions Process ........................................................................................... 575

Describing Requisition Close Criteria .................................................................................................. 577

Describing Close Requisition Changes to Requisition Statuses .......................................................... 579

Closing Requisitions ................................................................................................................................... 580

Page Used to Close Requisitions ........................................................................................................... 580

Running the Close Requisitions Process

Reopening Requisitions

.............................................................................................. 581

.............................................................................................................................. 581

Understanding the Requisition Reopen Process .................................................................................... 582

Page Used to Reopen Requisitions ........................................................................................................ 583

Running the Requisition Reopen Process ............................................................................................. 583

Chapter 25

Reviewing Requisition Information ........................................................................................................ 587

Using Requisition Inquiries ......................................................................................................................... 587

Pages Used to Use Requisition Inquiries .............................................................................................. 587

Entering Requisition Inquiry Selection Criteria

Viewing Requisition Information

Viewing Requisition Line Details

................................................................................... 590

......................................................................................................... 591

........................................................................................................ 592

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Viewing Requisition Schedule Details

Viewing Requisition Distribution Details

................................................................................................. 596

............................................................................................ 596

Viewing Requisition-to-Purchase Order Information

Viewing Requisition-to-Receipt Information

.......................................................................... 596

....................................................................................... 597

Viewing Requisition-to-MSR Information

Using the Requisition Workbench

.......................................................................................... 597

.............................................................................................................. 598

Pages Used to Use the Requisition Workbench .................................................................................... 598

Entering Requisition Workbench Selection Criteria ............................................................................ 600

Viewing Requisition Workbench Information

Reviewing Requisition Accounting Line Entries

..................................................................................... 604

....................................................................................... 605

Pages Used to Review Requisition Accounting Line Entries ............................................................... 605

Entering Requisition Accounting Line Entry Selection Criteria .......................................................... 606

Reviewing Requisition Accounting Line Entries

Reviewing Requisition Entry Event Journal Entries

................................................................................. 606

.................................................................................. 608

Page Used to View Requisition Entry Event Journal Entries ............................................................... 608

Chapter 26

Managing Requests for Quotes ................................................................................................................ 609

Understanding RFQs in PeopleSoft Purchasing

Establishing Vendor Quote Groups

......................................................................................... 609

............................................................................................................ 610

Pages Used to Establish Vendor Quote Groups .................................................................................... 611

Creating RFQs ............................................................................................................................................ 611

Pages Used to Create RFQs .................................................................................................................. 611

Creating an RFQ ................................................................................................................................... 615

Entering RFQ Header Details .............................................................................................................. 617

Copying Lines from RFQs or Requisitions .......................................................................................... 617

Adding Item Vendors to the Dispatch Vendor List

Selecting Vendors for RFQ Dispatch

.............................................................................. 621

................................................................................................... 621

Dispatching from the RFQ Component ............................................................................................... 622

Viewing RFQ Dispatch History ........................................................................................................... 623

Sending an Email Regarding an RFQ .................................................................................................. 623

Dispatching RFQs ....................................................................................................................................... 624

Understanding the RFQ Dispatch and Print Process ............................................................................ 624

Page Used to Dispatch RFQs ................................................................................................................ 626

Running the RFQ Dispatch/Print Process ............................................................................................ 626

Loading RFQ EDX Responses ................................................................................................................... 626

Understanding the Load RFQ EDX Responses Process ...................................................................... 627

Page Used to Load RFQ EDX Responses ............................................................................................. 627

Using the RFQ EIP ..................................................................................................................................... 627

Understanding the RFQ EIP ................................................................................................................. 627

Pages Used to Use the RFQ EIP ........................................................................................................... 628

Setting Up the RFQ EIP ....................................................................................................................... 628

xviii Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Processing the RFQ EIP

Using the RFQ Response EIP

....................................................................................................................... 629

..................................................................................................................... 630

Understanding the RFQ Response EIP ................................................................................................ 630

Pages Used to Use the RFQ Response EIP ........................................................................................... 630

Using the RFQ Response EIP .............................................................................................................. 630

Resolving Vendor Response Load Errors ................................................................................................... 631

Pages Used to Resolve Vendor Response Load Errors ......................................................................... 631

Correcting Vendor Response Errors .................................................................................................... 632

Maintaining RFQ Responses ...................................................................................................................... 633

Pages Used to Maintain RFQ Responses .............................................................................................. 634

Maintaining Vendor Responses ........................................................................................................... 635

Viewing Vendor Response Header Details .......................................................................................... 636

Awarding RFQs to Vendors ........................................................................................................................ 637

Pages Used to Analyze and Award RFQs to Vendors .......................................................................... 637

Analyzing and Awarding Quotes ......................................................................................................... 637

Creating Purchase Orders or Contracts from RFQs .................................................................................... 638

Pages Used to Create Purchase Orders or Contracts from RFQs .......................................................... 639

Creating a Purchase Order or Contract from an RFQ .......................................................................... 639

Defining RFQ Purchase Order Distributions ....................................................................................... 642

Closing RFQs ............................................................................................................................................... 643

Page Used to Close RFQs ..................................................................................................................... 643

Closing RFQs ........................................................................................................................................ 643

Inquiring and Reporting on RFQs and Vendor Responses ......................................................................... 643

Pages Used to Inquire and Report on RFQs and Vendor Responses .................................................... 643

Comparing Request and Response Values ........................................................................................... 646

Part 5

Using Purchase Orders and Change Orders

Chapter 27

Understanding Purchase Orders ............................................................................................................. 649

Purchase Order Defaults ............................................................................................................................. 649

Purchase Order Header Status Values ........................................................................................................ 650

SUT Processing on the Purchase Order

VAT Processing on the Purchase Order

...................................................................................................... 652

..................................................................................................... 653

Vendor Rebate Processing on the Purchase Order ...................................................................................... 654

Procurement Card Processing on the Purchase Order ................................................................................ 657

PeopleSoft Maintenance Management Work Order Processing on the Purchase Order

Purchase Order Consolidation

............................ 658

.................................................................................................................... 659

Purchase Order Cancelation ........................................................................................................................ 661

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

xix

Contents

Purchase Order Deletion ............................................................................................................................. 666

Purchase Order Hold Processing ................................................................................................................. 667

Chapter 28

Creating Purchase Orders Online ........................................................................................................... 671

Understanding the Purchase Order Business Process

Common Elements Used in This Chapter

................................................................................. 671

............................................................................................ 676

Using Purchase Order Reservations ............................................................................................................ 681

Understanding How the System Assigns Purchase Order IDs When Reserving Purchase Orders ....... 681

Page Used to Reserve Purchase Orders ................................................................................................. 683

Reserving Purchase Orders .................................................................................................................. 683

Creating Purchase Order Headers ............................................................................................................... 684

Pages Used to Create Purchase Order Headers ..................................................................................... 685

Entering Purchase Order Header Information

Entering Vendor Details

...................................................................................... 691

....................................................................................................................... 704

Entering Purchase Order Header Details .............................................................................................. 705

Entering Purchase Order Header Comments ........................................................................................ 708

Entering Purchase Order Defaults ........................................................................................................ 710

Applying Default Field Value Changes to Existing Lines, Schedules, and Distributions ................... 714

Maintaining Procurement Card Information

Entering Purchase Order Header VAT Details

........................................................................................ 715

.................................................................................... 715

Entering Purchase Order Dispatch Options

Viewing Purchase Order Dispatch History

......................................................................................... 716

.......................................................................................... 717

Entering Purchase Order Matching Information .................................................................................. 717

Assigning Purchase Order Change Request Reasons ........................................................................... 718

Creating Purchase Order Lines ................................................................................................................... 718

Pages Used to Create Purchase Order Lines ......................................................................................... 719

Entering Purchase Order Line Information

Entering Purchase Order Line Details

.......................................................................................... 721

.................................................................................................. 728

Searching for Contracts ......................................................................................................................... 736

Applying Miscellaneous Charges To Purchase Order Lines ................................................................ 737

Selecting Miscellaneous Charges to Apply to Purchase Order Lines

Creating Purchase Order Schedules

.................................................. 738

............................................................................................................ 739

Pages Used to Create Purchase Order Schedules .................................................................................. 739

Entering Purchase Order Schedule Information ................................................................................... 741

Entering Purchase Order Schedule One-time Address Information

Entering Schedule SUT Information

.................................................... 751

.................................................................................................... 752

Updating Schedule VAT Details

Entering Schedule Details

.......................................................................................................... 753

.................................................................................................................... 760

Entering Schedule Price Adjustments .................................................................................................. 763

Entering Schedule Miscellaneous Charges .......................................................................................... 765

Entering Schedule Third-Party Vendor Miscellaneous Charges .......................................................... 766

xx Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Creating Purchase Order Distributions ....................................................................................................... 766

Pages Used to Create Purchase Order Distributions ............................................................................. 767

Entering Distribution Information

Viewing Distribution SUT Details

........................................................................................................ 768

....................................................................................................... 776

Entering Distribution VAT Details ...................................................................................................... 776

Entering Distribution Information Directly .......................................................................................... 778

Canceling a Purchase Order Online ............................................................................................................ 778

Pages Used to Cancel a Purchase Order Online .................................................................................... 779

Canceling a Purchase Order ................................................................................................................. 780

Viewing Error Messages When Canceling a Purchase Order .............................................................. 781

Resourcing Requisitions Associated With a Purchase Order After Successful Cancelation of a Purchase

Order ................................................................................................................................................. 782

Initiating Budget Checking After Successful Cancelation of a Purchase Order

Using Express Purchase Orders

.................................. 783

.................................................................................................................. 784

Pages Used to Enter Express Purchase Orders ...................................................................................... 785

Entering Express Purchase Orders ....................................................................................................... 785

Using Purchase Order Acknowledgements ................................................................................................. 787

Understanding the POA Business Process ........................................................................................... 787

Understanding the Electronic Date Exchange POA Business Process ................................................ 789

Pages Used to Use Purchase Order Acknowledgements ....................................................................... 791

Searching for POAs .............................................................................................................................. 792

Reviewing Acknowledgement Header Information ............................................................................. 793

Comparing Purchase Order and EDX POA Header Details ................................................................ 795

Comparing Purchase Order and EDX POA Line Details

Reviewing EDX POA Schedule Information

..................................................................... 795

....................................................................................... 795

Comparing Purchase Order and EDX POA Schedule Details

Creating and Viewing Purchase Order Backorders

............................................................. 796

.................................................................................... 796

Pages Used to Create and View Purchase Order Backorders ............................................................... 797

Updating Purchase Order Backorder Status ......................................................................................... 798

Updating Purchase Orders With New Item Vendor UOM Conversion Rates ............................................ 799

Page Used to Update Purchase Orders With New Item Vendor UOM Conversion Rates ................... 800

Accessing Purchase Order Related Content ................................................................................................. 800

Understanding Related Content ............................................................................................................ 800

Pages Used to Access Purchase Order Related Information ................................................................. 803

Viewing Spend by Vendor Related Information ................................................................................... 804

Viewing Recent Purchase Order Related Content ................................................................................ 804

Viewing Overdue Purchase Order Related Information ....................................................................... 805

Viewing Vendor Returns Related Information ..................................................................................... 806

Chapter 29

Using Purchase Order Sourcing .............................................................................................................. 807

Understanding the Purchase Order Sourcing Business Process .................................................................. 808

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Primary Sourcing Staging Tables

Stage Statuses

......................................................................................................... 810

....................................................................................................................................... 811

Qualifying Criteria for Requisition Selection ...................................................................................... 813

Common Elements Used in This Chapter ............................................................................................. 814

Manually Selecting Requisitions for Sourcing ........................................................................................... 815

Understanding the Manual Requisition Selection Process ................................................................... 815

Pages Used to Manually Select Requisitions for Sourcing ................................................................... 816

Sourcing Requisitions to Purchase Orders Manually ........................................................................... 818

Maintaining Procurement Card Information

Changing Requisition Vendors

........................................................................................ 825

............................................................................................................ 826

Reviewing Purchase Order Staging Details ......................................................................................... 826

Reviewing Purchase Order Item Staging Information ......................................................................... 829

Reviewing Purchase Order Header Staging Details

Automatically Selecting Requisitions for Sourcing

............................................................................. 829

.................................................................................... 830

Understanding the AutoSelect Requisitions Process ........................................................................... 830

Page Used to Automatically Select Requisitions for Sourcing ............................................................. 831

Running the AutoSelect Requisitions Process

Sourcing by Region

..................................................................................... 832

..................................................................................................................................... 833

Understanding Regional Sourcing ....................................................................................................... 833

Pages Used to Source by Region ........................................................................................................... 834

Setting Up Region Codes ..................................................................................................................... 835

Associating Regions to Ship To Locations .......................................................................................... 835

Defining Vendor Priority and Vendor Location by Region

Defining Vendor Order Locations

................................................................. 836

........................................................................................................ 837

Reviewing Regional Level Sourcing Methods ..................................................................................... 837

Loading Staged Purchase Order Requests from PeopleSoft Supply Planning and Manufacturing

Understanding the PO Stage Load Process

............ 837

.......................................................................................... 837

Page Used to Load Staged Purchase Order Requests from PeopleSoft Supply Planning and

Manufacturing .................................................................................................................................... 838

Reviewing, Approving, and Applying Planning Messages

Running the PO Stage Load Application Engine Process

.................................................................. 838

.................................................................... 839

Building Inventory Demand Transactions .................................................................................................. 840

Understanding the Build Inventory Demand Process .......................................................................... 840

Page Used to Build Inventory Demand Transactions

Running the PO Calculations Process

.......................................................................... 844

......................................................................................................... 844

Understanding the PO Calculations Process

Understanding Sourcing Methods

........................................................................................ 844

........................................................................................................ 850

Understanding How Contracts are Assigned on Purchase Orders ........................................................ 855

Page Used to Run the PO Calculations Process .................................................................................... 855

Running the PO Calculations Process

Using the Sourcing Workbench

.................................................................................................. 855

.................................................................................................................. 858

Understanding the Sourcing Workbench ............................................................................................. 859

Common Elements Used in This Section .............................................................................................. 860

Pages Used to Use the Sourcing Workbench ........................................................................................ 862

Defining Sourcing Workbench Search Criteria ..................................................................................... 864

xxii Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Viewing and Modifying Staged Row Details

Viewing Eligible Vendors for Staged Rows

...................................................................................... 867

........................................................................................ 871

Viewing Item Requisition Pricing Details ........................................................................................... 871

Viewing Purchase Order Sales and Use Tax Information .................................................................... 873

Viewing Purchase Order Value Adjustments

Viewing Purchase Order VAT Information

....................................................................................... 874

......................................................................................... 875

Viewing Flexible Sourcing Vendor Selection Results

Viewing Planned Purchase Order Information

......................................................................... 876

.................................................................................... 878

Creating Purchase Orders Using the Create Purchase Orders Process

Understanding the Create Purchase Orders Process

....................................................... 880

............................................................................. 880

Page Used to Create Purchase Orders Using the Create Purchase Orders Process ............................... 880

Running the Create Purchase Orders Process ...................................................................................... 880

Using the Automatic Purchasing Sourcing Process .................................................................................... 881

Understanding the Automatic Purchasing Sourcing Process ............................................................... 881

Pages Used to Run the Automatic Purchasing Sourcing Process ......................................................... 882

Defining Sourcing Process Objectives ................................................................................................. 883

Running the Automatic Purchasing Sourcing Process ......................................................................... 884

Updating Vendor History Dates and Amounts for Cumulative Sourcing .................................................. 885

Understanding the Cumulative Sourcing Update Application Engine Process ................................... 885

Page Used to Update Vendor History Dates and Amounts for Cumulative Sourcing .......................... 886

Running the Cumulative Sourcing Update Process

Purging Purchasing Staging Tables

............................................................................. 886

............................................................................................................ 887

Understanding the Purge Stage Tables Process ................................................................................... 887

Page Used to Purge Purchasing Staging Tables .................................................................................... 888

Running the Purge Stage Tables Application Engine Process ............................................................. 888

Manually Constructing the Purchasing Staging Tables

Sourcing Error Messages

.............................................................................. 889

............................................................................................................................ 902

Chapter 30

Approving Purchase Orders ..................................................................................................................... 911

Understanding Purchase Order Approvals ................................................................................................... 911

Approving Purchase Orders With Approval Framework ............................................................................ 912

Pages Used to Approve Purchase Orders With Approval Framework ................................................. 917

Performing Approval Tasks for Multiple Purchase Orders ................................................................... 919

Performing Approval Tasks for an Individual Purchase Order ............................................................. 921

Approving Purchase Orders With PeopleTools Workflow Technology ..................................................... 925

Understanding Approving Purchase Orders With PeopleTools Workflow Technology ...................... 925

Pages Used to Approve Purchase Orders With PeopleTools Workflow Technology .......................... 930

Approving Purchase Order Amounts .................................................................................................... 931

Approving Purchase Order ChartFields ................................................................................................ 933

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents xxiv

Chapter 31

Dispatching and Printing Purchase Orders ........................................................................................... 935

Understanding Purchase Order Dispatch

Dispatching Purchase Orders

.................................................................................................... 935

...................................................................................................................... 940

Pages Used to Dispatch Purchase Orders .............................................................................................. 940

Running the PO Dispatch/Print Process ............................................................................................... 940

Selecting Purchase Orders for Dispatch ............................................................................................... 945

Using the Purchase Order Dispatch/Purchase Order Change Request EIP ................................................. 946

Understanding the Purchase Order Dispatch/Purchase Order Change Request EIP ............................. 946

Pages Used to Use the Purchase Order Dispatch/Purchase Order Change Request EIP ...................... 946

Setting Up the Purchase Order Dispatch/Purchase Order Change Request EIP ................................... 947

Processing the Purchase Order Dispatch/Purchase Order Change Request EIP ................................... 948

Chapter 32

Creating Purchase Order Change Orders .............................................................................................. 949

Understanding the Purchase Order Change Order Business Process ......................................................... 949

Common Elements Used in This Chapter ............................................................................................. 954

Defining Change Order and Sequence Numbers

Setting Up Purchase Order Change Templates

................................................................................. 954

........................................................................................... 957

Identifying Purchase Order Change Order Fields ....................................................................................... 957

Reviewing Processing Rules for the Change Purchase Order Process

Generating Purchase Order Change Orders Online

....................................................... 966

.................................................................................... 969

Loading Change Orders Received Using EDXs or Supplier-Facing Online Acknowledgements (PeopleSoft eSupplier Connection) ............................................................................................................................. 970

Page Used to Load Change Orders Received Using EDXs or Supplier-Facing Online Acknowledgements

(PeopleSoft eSupplier Connection) .................................................................................................... 971

Running the Change Load Process ....................................................................................................... 971

Using the Purchase Order and Purchase Order Change Order Acknowledgement EIP .............................. 972

Understanding the Purchase Order and Purchase Order Change Order Acknowledgement EIP ......... 972

Pages Used to Use the Purchase Order and Purchase Order Change Order Acknowledgement EIP ... 972

Using the Purchase Order and Purchase Order Change Order Acknowledgement EIP ....................... 973

Using the Purchase Order Close Short Workbench ..................................................................................... 973

Understanding the Close Short Job ....................................................................................................... 974

Pages Used with the Purchase Order Close Short Workbench ............................................................. 975

Searching for Purchase Orders to Close Short ...................................................................................... 975

Using the PO Close Short Workbench .................................................................................................. 976

Defining Close Short Process Request Options .................................................................................... 978

Reviewing and Approving Change Order Requests ................................................................................... 979

Understanding the Change Request Tables ........................................................................................... 979

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Pages Used to Review and Approve Change Order Requests .............................................................. 980

Selecting Change Order Requests to Review and Approve ................................................................. 980

Reviewing and Approving Change Requests ....................................................................................... 981

Viewing and Approving Change Request Details ................................................................................ 983

Creating Change Orders from Approved Change Requests ....................................................................... 986

Page Used to Create Change Orders from Approved Change Requests ............................................... 986

Running the Change Purchase Order Process

Purging Change Request Tables

...................................................................................... 986

................................................................................................................. 987

Understanding the Purge Change Request Process ............................................................................... 987

Page Used to Purge Change Request Tables ......................................................................................... 988

Running the PO_POCHGPRG Process

Viewing Purchase Order Change History

................................................................................................ 988

................................................................................................... 988

Pages Used to View Change Order History .......................................................................................... 988

Chapter 33

Using the Buyer's Workbench ................................................................................................................. 991

Understanding the Buyer's Workbench ...................................................................................................... 991

Managing Purchase Orders Using the Buyer's Workbench ........................................................................ 992

Pages Used to Manage Purchase Orders Using the Buyer's Workbench .............................................. 992

Selecting Purchase Orders .................................................................................................................... 993

Using the Buyer's Workbench .............................................................................................................. 995

Viewing Purchase Order Lines ............................................................................................................ 999

Viewing Purchase Order Schedules ................................................................................................... 1000

Viewing Processing Results ............................................................................................................... 1001

Chapter 34

Closing Purchase Orders ......................................................................................................................... 1003

Understanding the Close Purchase Orders Process

Purchase Order Close Criteria

................................................................................... 1003

............................................................................................................ 1004

Describing Close Purchase Order Changes to Purchase Order Statuses

Purchase Order Closure and the Fully Received Status

............................................ 1010

..................................................................... 1011

Purchase Order Closure and the Complete Status .............................................................................. 1012

Closing Purchase Orders ........................................................................................................................... 1012

Page Used to Close Purchase Orders .................................................................................................. 1013

Running the Close Purchase Orders Process

Reopening Purchase Orders

...................................................................................... 1013

...................................................................................................................... 1014

Understanding the Purchase Order Reopen Process ........................................................................... 1015

Page Used to Reopen Purchase Orders ............................................................................................... 1016

Running the Purchase Order Reopen Process ..................................................................................... 1017

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Chapter 35

Reviewing Purchase Order Information ............................................................................................... 1021

Inquiring About Purchase Orders .............................................................................................................. 1021

Pages Used to Inquire About Purchase Orders ................................................................................... 1021

Viewing Purchase Order Distribution Information ............................................................................. 1025

Viewing Purchase Order Activity Summaries ........................................................................................... 1027

Pages Used to View Purchase Order Activity Summaries .................................................................. 1028

Viewing Purchase Order Document Tolerance Information ..................................................................... 1028

Pages Used to View Purchase Order Document Tolerance Information

Reviewing Purchase Order Accounting Line Entries

........................................... 1028

............................................................................... 1029

Pages Used to Review Purchase Order Accounting Line Entries ....................................................... 1029

Selecting Accounting Line Entries for Review ................................................................................... 1029

Reviewing Accounting Line Entries for Purchase Orders ................................................................. 1030

Chapter 36

Using Stockless Items ............................................................................................................................... 1033

Understanding Stockless Items in PeopleSoft Purchasing ........................................................................ 1033

Part 6

Receiving, Inspecting, and Returning Goods or Services

xxvi

Chapter 37

Receiving Shipments ............................................................................................................................... 1037

Understanding the Receiving Business Process

Defining Receipt Statuses

........................................................................................ 1037

.................................................................................................................. 1040

Using Quantity Tolerances

Using Shipment Date Edits

................................................................................................................. 1040

................................................................................................................ 1041

Using Partial Receipt Edits

Using Directed Putaway

................................................................................................................ 1041

..................................................................................................................... 1042

Prerequisites .............................................................................................................................................. 1042

Common Elements Used in This Chapter ........................................................................................... 1043

Receiving Purchase Order Items ............................................................................................................... 1044

Receiving Non-Purchase Order Items ....................................................................................................... 1045

Receiving Items by Amount ..................................................................................................................... 1045

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Managing Receipts .................................................................................................................................... 1046

Pages Used to Manage Receipts .......................................................................................................... 1046

Selecting Purchase Orders

Entering Receipts

.................................................................................................................. 1051

............................................................................................................................... 1054

Entering Receipt Header Information

Viewing Receipt Line Details

................................................................................................ 1064

............................................................................................................ 1067

Entering Asset Information ................................................................................................................ 1071

Entering Override Inventory Putaway Information ............................................................................ 1076

Viewing Inventory Item Storage Details

Searching for Available Storage Locations

............................................................................................ 1081

........................................................................................ 1082

Maintaining Receipt Distribution Information ................................................................................... 1082

Maintaining Manufacturing Information ............................................................................................ 1084

Adding Receipt Progressive Numbers ................................................................................................ 1086

Viewing Purchase Order Comments .................................................................................................. 1086

Viewing Return-To-Vendor Details

Accruing a Receipt

................................................................................................... 1086

............................................................................................................................. 1087

Modifying Receipt ChartFields ................................................................................................................. 1088

Page Used to Modify Receipt ChartFields .......................................................................................... 1089

Modifying Receipt ChartField Values

Tracking Receipt Activity

............................................................................................... 1089

......................................................................................................................... 1090

Pages Used to Track Receipt Activity ................................................................................................. 1090

Using ASRs ............................................................................................................................................... 1090

Common Elements Used in This Section ............................................................................................ 1091

Pages Used to Use ASRs ..................................................................................................................... 1092

Accessing ASR Information ............................................................................................................... 1092

Accessing ASR Purchase Order Header Details

Viewing ASR Shipment Details

................................................................................ 1094

......................................................................................................... 1094

Viewing ASR Shipping Address Details ........................................................................................... 1095

Entering ASR Lot and Serial ID Information .................................................................................... 1095

Receiving Items Using EDC ..................................................................................................................... 1096

Understanding Entering Receipts Using EDC ................................................................................... 1096

Common Elements Used in This Section ............................................................................................ 1097

Pages Used to Receive Items Using Electronic Data Collection ........................................................ 1097

Initiating Receiving Using EDC

Updating ASRs Using EDC

........................................................................................................ 1097

............................................................................................................... 1098

Receiving an Entire Purchase Order Using EDC

Receiving a Purchase Order Line Using EDC

............................................................................... 1098

................................................................................... 1099

Receiving a Purchase Order Schedule Using EDC

Ending an EDC Receiving Transaction

............................................................................ 1099

............................................................................................. 1099

Using the ASR EIP ................................................................................................................................... 1099

Understanding the ASR EIP ................................................................................................................ 1099

Pages Used to Use the ASR EIP ......................................................................................................... 1099

Using the ASR EIP ............................................................................................................................. 1100

Using the Purchase Order Receipt EIP ..................................................................................................... 1101

Understanding the Purchase Order Receipt EIP .................................................................................. 1101

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Pages Used to Use the Purchase Order Receipt EIP ........................................................................... 1101

Using the Purchase Order Receipt EIP .............................................................................................. 1101

Using the Purchase Order Expected Receipts EIP .................................................................................... 1102

Understanding the Purchase Order Expected Receipts EIP ................................................................ 1102

Pages Used to Use the Purchase Order Expected Receipts EIP .......................................................... 1103

Setting Up the Purchase Order Expected Receipt EIP ........................................................................ 1103

Publishing the Purchase Order Expected Receipt EIP

Using the Purchase Order Receipt Notification EIP

....................................................................... 1105

................................................................................. 1105

Understanding the Purchase Order Receipt Notification EIP ............................................................. 1105

Page Used to Use the Purchase Order Receipt Notification EIP ........................................................ 1106

Setting Up the Purchase Order Receipt Notification EIP

Processing the Purchase Order Receipt Notification EIP

.................................................................. 1106

.................................................................. 1107

Loading Receipts Received Using EIPs and EDC .................................................................................... 1107

Understanding the Receive Load Process ........................................................................................... 1107

Pages Used to Load Receipts Received by EIPs and EDC ................................................................. 1109

Running the Receive Load Process .................................................................................................... 1109

Loading EDC Transactions Using the Receive Load Process

Loading ASR Transactions Using the Receive Load Process

........................................................... 1110

............................................................ 1110

Processing Receipts .................................................................................................................................. 1110

Understanding the Receipt Processes .................................................................................................. 1110

Page Used to Process Receipts ............................................................................................................ 1111

Using the Receiver Interface Push Application Engine Process (PO_RECVPUSH) ........................ 1111

Using the Receipt to Inventory & AM Multiprocess Job (RECV_03) .............................................. 1111

Using the Receipt + INV + MFG + AM Multiprocess Job (RECV_07) ............................................. 1113

Using Additional Receipt Processes .................................................................................................. 1114

Processing Receipts ............................................................................................................................ 1115

Running the Close Short Process ............................................................................................................... 1115

Page Used to Run the Close Short Process ......................................................................................... 1115

Submitting the Close Short Process .................................................................................................... 1115

Working with Landed Costs on Receipts

Understanding Landed Costs

.................................................................................................. 1116

............................................................................................................. 1116

Pages Used to Work with Landed Costs on Receipts ......................................................................... 1117

Accessing Receipt and Voucher Landed Cost Information ............................................................... 1117

Viewing Voucher Details for Landed Costs

Closing Receipts

...................................................................................... 1118

....................................................................................................................................... 1118

Understanding the Close Receipts Process ........................................................................................ 1119

Page Used to Close Receipts ............................................................................................................... 1119

Generating Receiving Labels .................................................................................................................... 1119

Understanding Barcode Label Generation ......................................................................................... 1119

Page Used to Generate Receiving Labels ............................................................................................ 1120

xxviii Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Chapter 38

Working with Delivery Information ..................................................................................................... 1121

Understanding Delivery Information ......................................................................................................... 1121

Accessing Delivery Information ................................................................................................................ 1121

Pages Used to Access Delivery Information ....................................................................................... 1122

Review Delivery Information for a Receipt ........................................................................................ 1123

Chapter 39

Inspecting Received Items ...................................................................................................................... 1125

Understanding Inspections ......................................................................................................................... 1125

Using Separate Inspections ................................................................................................................. 1125

Performing Inspections .............................................................................................................................. 1127

Pages Used to Perform Inspections ..................................................................................................... 1128

Inspecting Receipt Items .................................................................................................................... 1129

Selecting Receipt Lines for Inspection ............................................................................................... 1132

Using Inspection Instructions ............................................................................................................. 1133

Specifying Putaway Location Overrides ............................................................................................ 1133

Viewing Receipt Item Details ............................................................................................................ 1135

Entering RTV Setup Information ....................................................................................................... 1136

Chapter 40

Managing Vendor Returns ..................................................................................................................... 1139

Understanding the RTV Business Process ................................................................................................ 1139

Item Rejection Versus Item Returns .................................................................................................. 1140

Return Actions Review for RTV Transactions .................................................................................. 1142

RTV Data Change Review

Inventory Return Records

................................................................................................................. 1143

.................................................................................................................. 1145

Return to Vendor Streamline Processing ............................................................................................ 1146

Asset Return Records ......................................................................................................................... 1150

Common Elements Used in This Chapter

Setting Up RTV Processing Options

.......................................................................................... 1151

........................................................................................................ 1152

Creating RTV Transactions Without Purchase Orders ............................................................................. 1153

Creating RTV Transactions Against Closed Purchase Orders .................................................................. 1153

Selecting RTV Source Details

Entering RTV Transactions

.................................................................................................................. 1154

...................................................................................................................... 1155

Pages Used to Enter RTV Transactions .............................................................................................. 1155

Entering RTV Information ................................................................................................................. 1159

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Selecting Receipt Lines for Item Returns

Viewing Item Receipt Details

.......................................................................................... 1168

............................................................................................................ 1170

Entering RTV Defaults ....................................................................................................................... 1170

Overriding the Vendor RTV Address ................................................................................................ 1172

Selecting Purchase Order Distribution Return Details

Selecting Receipt Distribution Return Details

....................................................................... 1172

................................................................................... 1173

Selecting Asset Return Details ........................................................................................................... 1173

Entering Distribution Return Details .................................................................................................. 1174

Searching for Storage Locations ......................................................................................................... 1178

Accessing RTV Fees .......................................................................................................................... 1178

Entering RTV Header Details ............................................................................................................ 1179

Accessing RTV Progressive Numbers ............................................................................................... 1179

Dispatching and Printing RTV Transactions ............................................................................................ 1180

Understanding the RTV Dispatch/Print Process ................................................................................. 1180

Page Used to Dispatch and Print RTV Transactions ........................................................................... 1181

Running the RTV Dispatch/Print Process .......................................................................................... 1181

Using the RTV EIP ................................................................................................................................... 1183

Understanding the RTV EIP ............................................................................................................... 1183

Pages Used to Use the RTV EIP ......................................................................................................... 1184

Setting Up the RTV EIP ...................................................................................................................... 1184

Processing the RTV EIP

Reconciling RTV Transactions

..................................................................................................................... 1185

................................................................................................................. 1185

Understanding the RTV Reconciliation Process ................................................................................. 1185

Page Used to Reconcile RTV Transactions ........................................................................................ 1186

Inquiring About RTVs .............................................................................................................................. 1186

Pages Used to Inquire About RTVs .................................................................................................... 1187

Chapter 41

Using Receipt Accrual ............................................................................................................................ 1189

Understanding Receipt Accrual ................................................................................................................ 1189

Receipt Accrual Criteria Description ................................................................................................. 1191

Receipt Accrual Setup ........................................................................................................................ 1192

Receipt Accrual Implementation ........................................................................................................ 1193

Accruing Receipts ..................................................................................................................................... 1194

Pages Used to Accrue Receipts ........................................................................................................... 1194

Running the Receipt Accrual Process ................................................................................................ 1195

Performing Budget-Checking for Receipt Accruals ................................................................................. 1196

Page Used to Perform Budget-Checking for Receipt Accruals .......................................................... 1196

Budget-Checking Receipt Accruals ................................................................................................... 1197

Viewing Receipt Accrual Accounting Line Entries .................................................................................. 1198

Pages Used to View Receipt Accrual Accounting Line Entries ......................................................... 1198

Accessing Receipt Accrual Accounting Entries ................................................................................. 1198

xxx Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Viewing Receipt Accrual Journal Entries ................................................................................................. 1199

Page Used to View Receipt Accrual Journal Entries .......................................................................... 1200

Accessing Receipt Accrual Journal Entries ......................................................................................... 1200

Chapter 42

Reviewing Receipt Information .............................................................................................................. 1203

Inquiring About Receipts ........................................................................................................................... 1203

Pages Used to Inquire About Receipts ................................................................................................ 1203

Chapter 43

Inquiring About Document Status ........................................................................................................ 1207

Understanding Document Status Inquiries ................................................................................................ 1207

Common Elements Used in This Chapter ........................................................................................... 1208

Viewing Document Status ......................................................................................................................... 1210

Pages Used to View Document Status ................................................................................................ 1211

Viewing Requisition Document Status

Viewing RFQ Document Status

.............................................................................................. 1212

......................................................................................................... 1212

Viewing Purchase Order Document Status

Viewing Receipt Document Status

........................................................................................ 1213

.................................................................................................... 1213

Viewing RTV Document Status ......................................................................................................... 1214

Viewing Contract Document Status ................................................................................................... 1214

Part 7

Analyzing Procurement Data and Using Group Purchasing Organizations

Chapter 44

Analyzing Procurement History ............................................................................................................ 1217

Understanding Procurement History Analysis ........................................................................................... 1217

Configuring Procurement Analysis Inquiries ........................................................................................... 1218

Pages Used to Configure Procurement Analysis Inquiries ................................................................. 1218

Defining Reporting Entities ............................................................................................................... 1219

Setting Up Candidate Fields

Setting Up Candidate Views

............................................................................................................... 1221

.............................................................................................................. 1222

Setting Up Inquiry Profiles

Generating Procurement History

................................................................................................................ 1222

.............................................................................................................. 1223

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

Understanding the Procurement History Update Application Engine Process (FS_PRCRUPD) ....... 1223

Page Used to Generate Procurement History ...................................................................................... 1224

Running the Procurement History Update Process ............................................................................ 1224

Generating Spend History .......................................................................................................................... 1225

Understanding the Spend History Application Engine Process (PO_SPND_HIST) .......................... 1225

Page Used to Generate Spend History ................................................................................................ 1225

Running the Spend History Process .................................................................................................... 1225

Generating Procurement Statistics ............................................................................................................. 1226

Understanding the Procurement Statistics Process ............................................................................. 1226

Page Used to Generate Procurement Statistics ................................................................................... 1227

Running the Procurement Statistics Process ....................................................................................... 1227

Building Vendor Analysis Cube ............................................................................................................... 1228

Understanding the Vendor Performance Analysis Build Cube Process (POVENDOR) .................... 1228

Page Used to Build Vendor Analysis Cube ........................................................................................ 1229

Running the Vendor Performance Analysis Process .......................................................................... 1229

Reviewing Supplier Performance .............................................................................................................. 1230

Page Used to Review Supplier Performance ....................................................................................... 1230

Reviewing Supplier Performance ........................................................................................................ 1230

Viewing Procurement Analysis Data ........................................................................................................ 1232

Understanding Procurement History Inquiries .................................................................................... 1232

Common Elements Used in This Section ............................................................................................ 1233

Pages Used to View Procurement Analysis Data ................................................................................ 1234

Viewing Purchase Order Data

Viewing Receipt Data

............................................................................................................ 1237

........................................................................................................................ 1237

Viewing Voucher Data ....................................................................................................................... 1238

Viewing Requisition Data .................................................................................................................. 1238

Viewing Procurement Statistics ................................................................................................................. 1238

Page Used to View Procurement Statistics ......................................................................................... 1239

Viewing Procurement Statistics .......................................................................................................... 1239

Chapter 45

Using Group Purchasing Organizations ............................................................................................... 1243

Understanding GPO Contracts .................................................................................................................. 1243

Common Elements Used in This Chapter .......................................................................................... 1244

Defining GPO Contracts ........................................................................................................................... 1244

Understanding the GPO Contract Definition Process ........................................................................ 1244

Pages Used to Define GPO Contracts ................................................................................................. 1245

Defining GPO Manufacturer Contracts .............................................................................................. 1247

Defining GPO Distributors

Loading GPO Contracts

................................................................................................................. 1248

............................................................................................................................ 1249

Understanding the Load GPO Contracts Process ............................................................................... 1249

Understanding Health Care Unit-of-Measure Conversion .................................................................. 1253

xxxii Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Pages Used to Load GPO Contracts .................................................................................................... 1256

Loading GPO Data Using PeopleSoft Integration Broker ................................................................. 1258

Correcting GPO Item Load Errors

Approving GPO Items for Loading

..................................................................................................... 1259

.................................................................................................... 1260

Running the GPO Manufacturer Price Load Process

Correcting Item Manufacturer GPO Errors

......................................................................... 1263

........................................................................................ 1263

Viewing Item Manufacturer GPO Prices

Calculating Distributor Prices

........................................................................................... 1264

................................................................................................................... 1264

Understanding Calculating Distributor Prices .................................................................................... 1264

Pages Used to Calculate Distributor Prices ......................................................................................... 1266

Running the GPO Distributor Price Load Application Engine Process (PO_GPOVND_PR) .......... 1267

Appendix A

(USF) Using Federal Spending Regions ................................................................................................ 1269

Understanding Federal Spending Regions ................................................................................................. 1269

Defining Federal Spending Regions .......................................................................................................... 1269

Page Used to Define Federal Spending Regions ................................................................................. 1269

Defining Spending Regions

Using Spending Regions

............................................................................................................... 1269

........................................................................................................................... 1271

Pages Used to Use Spending Regions ................................................................................................. 1271

Using Spending Regions .................................................................................................................... 1271

Appendix B

Processing Taxes for India ...................................................................................................................... 1273

Processing Custom Duty, Excise Duty, and Sales Tax/VAT in the Sourcing Business Process .............. 1273

Pages Used to Process Custom Duty, Excise Duty, and Sales Tax/VAT in the Sourcing Business Process

.......................................................................................................................................................... 1274

Processing Custom Duty, Excise Duty, and Sales Tax/VAT in the PO Calculations Application Engine

Process (PO_POCALC) .................................................................................................................. 1275

Viewing Purchase Order Excise Duty and Sales Tax/VAT Detail Information in the Sourcing Workbench

.......................................................................................................................................................... 1275

Processing Custom Duties, Excise Duties, and Sales Tax/VAT in the Create Purchase Orders Application

Engine Process (PO_POCREATE) ................................................................................................. 1279

Purging Excise Duties and Sales Tax/VAT in the Purchasing Staging Tables Using the Purge Stage

Tables Application Engine Process (PO_POSTGRP) .................................................................... 1279

Processing Excise Duty and Sales Tax/VAT for Online Purchase Orders ................................................ 1280

Pages Used to Process Excise Duty and Sales Tax/VAT for Online Purchase Orders ....................... 1280

Entering Purchase Order Excise Duty and Sales Tax/VAT Detail Information ................................ 1282

Accessing Purchase Order Schedule Excise Duty and Sales Tax/VAT Details

Processing Customs Duty on Online Purchase Orders

................................ 1283

............................................................................. 1289

Understanding Purchase Order Customs Duty Processing ................................................................ 1289

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

xxxiii

Contents

Pages Used to Process Customs Duty on Online Purchase Orders

Entering Purchase Order Line Customs Duty Details

.................................................... 1289

........................................................................ 1291

Entering Purchase Order Schedule Customs Duty Details

Accessing Purchase Order Schedule Customs Duty Details

................................................................ 1292

.............................................................. 1293

Entering Express Purchase Order Customs Duty Details .................................................................. 1296

Dispatching and Printing Excise Duty and Sales Tax/VAT Information on Purchase Orders ................. 1298

Page Used to Dispatch and Print Excise Duty and Sales Tax/VAT Information on Purchase Orders

Processing Custom Duty, Excise Duty, and Sales Tax/VAT in Purchase Order Change Orders

1299

............ 1299

Page Used to Process Custom Duty, Excise Duty, and Sales Tax/VAT in Purchase Order Change Orders

.......................................................................................................................................................... 1300

Processing Excise Duty and Sales Tax/VAT in the PO Receipt Push Process ......................................... 1300

Page Used to Process Excise Duty and Sales Tax/VAT in the PO Receipt Push Process .................. 1301

Using the Return-To-Vendor (RTV) Excise Adjustment Business Process

Using a BOE

............................................. 1301

............................................................................................................................................. 1301

Understanding BOE ........................................................................................................................... 1301

Understanding BOE Processing Rules ................................................................................................ 1303

Understanding BOE Statuses ............................................................................................................. 1303

Understanding BOE Customs Duty Determination and Calculation ................................................. 1304

Pages Used to Use a BOE ................................................................................................................... 1305

Creating BOEs .................................................................................................................................... 1305

Selecting BOE Source Transactions .................................................................................................. 1310

Entering BOE Header Details ............................................................................................................ 1313

Printing Bill of Entry Worksheets ...................................................................................................... 1316

Updating BOE .................................................................................................................................... 1317

Receiving Against a BOE ......................................................................................................................... 1318

Understanding the BOE Receipts ....................................................................................................... 1318

Pages Used to Receive Against BOE .................................................................................................. 1319

Selecting BOE Lines for Receipt

Receiving BOE Lines

....................................................................................................... 1319

......................................................................................................................... 1320

Running the Receiver Interface Push Process with Customs Duty

Creating Internal Vendor Excise Invoices Against a BOE

.......................................................... 1321

....................................................................... 1321

Pages Used to Create Internal Vendor Excise Invoices Against a BOE ............................................. 1322

Selecting BOE Lines to Associate with Internal Vendor Excise Invoices ......................................... 1322

Creating Internal Vendor Excise Invoices for BOE Transactions ..................................................... 1323

Viewing India Localization Reports .......................................................................................................... 1325

Appendix C

Delivered Workflows for PeopleSoft Enterprise Purchasing ............................................................. 1327

Delivered Workflows for PeopleSoft Enterprise Purchasing .................................................................... 1327

Bank Statement Arrived ...................................................................................................................... 1327

Contract Expiration Alert .................................................................................................................... 1328

Online Purchase Order Acknowledgement Notifications ................................................................... 1328

xxxiv Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Contents

Procurement Card Grace Period Expired ............................................................................................ 1329

Purchase Order Acknowledgement Alert Notification ....................................................................... 1329

Purchase Order Approval - ChartField Approval, Supervisor ............................................................ 1330

Purchase Order Approval - ChartField Approval, Reviewer .............................................................. 1330

Purchase Order Approval - ChartField Approval, Denied .................................................................. 1331

Purchase Order Approval - Amount Approval, Supervisor ................................................................ 1332

Purchase Order Approval - Amount Approval, Reviewer .................................................................. 1332

Purchase Order Approval - Amount Approval, Denied ...................................................................... 1333

Purchase Order Canceled .................................................................................................................... 1333

Rebate Manager Notification .............................................................................................................. 1334

Receipt Quantity Change Notification ................................................................................................ 1334

Request for Quote (RFQ) Notification ................................................................................................ 1334

Requisition Approval - ChartField Approval ...................................................................................... 1335

Requisition Approval - ChartField Approval ...................................................................................... 1336

Requisition Approval - ChartField Approval ...................................................................................... 1336

Requisition Approval - Amount Approval .......................................................................................... 1337

Requisition Approval - Amount Approval .......................................................................................... 1337

Requisition Approval - Amount Approval .......................................................................................... 1338

Requisition Sourced ............................................................................................................................ 1338

Settlement Manager Notification ........................................................................................................ 1339

Appendix D

PeopleSoft Purchasing Reports ............................................................................................................. 1341

PeopleSoft Purchasing Reports: General Description ............................................................................... 1341

PeopleSoft Purchasing Reports ........................................................................................................... 1342

PeopleSoft Purchasing Cost Reports ................................................................................................... 1356

PeopleSoft Purchasing Report Details ....................................................................................................... 1356

Common Elements Used in PeopleSoft Purchasing Reports .............................................................. 1356

POLGSPND - Line Group Spend ...................................................................................................... 1357

POPO005 - PO Dispatch/Print ........................................................................................................... 1357

POPO008 - Close Purchase Order ..................................................................................................... 1358

POPO009 - PO Activity ..................................................................................................................... 1358

POPO010 - PO Acknowledgement .................................................................................................... 1359

PO_POROLLEXP - PO Rollover Exception List Sort by PO

PORC100 - Advanced Shipment Receipt (ASR)

........................................................... 1359

............................................................................... 1360

PORC200 - Planned Receipt

PORC700 - Receipt Accrual

.............................................................................................................. 1360

.............................................................................................................. 1361

PORC920 - Receipt Item Usage Labels

PORC930 - Device Tracking Receipts

............................................................................................. 1361

............................................................................................... 1362

POROL001 - Open Purchase Order ................................................................................................... 1362

POROL002 - PO Rollover ................................................................................................................. 1363

POROLLEXP_PO - PO Rollover Exception List Sort by Type ........................................................ 1363

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Contents

PORQ010 - Requisition Print SQR

PORT001 - RTV Dispatch/Print

.................................................................................................... 1364

........................................................................................................ 1364

POS8001 - Procurement Budgetary Activity

POS8002 - Requisition Budgetary Activity

..................................................................................... 1365

....................................................................................... 1366

PO Dispatch ......................................................................................................................................... 1367

POXMLP - Print .................................................................................................................................. 1368

POX4006 - Expediting Report by Buyer

POX4007 - Expediting Report by Vendor

........................................................................................... 1368

......................................................................................... 1368

POX4008 - Expediting Report by Due Date

POX4030 - PO Detail Listing By PO Date

...................................................................................... 1368

....................................................................................... 1368

POX4031 - PO Detail Listing By Vendor

POX4032 - PO Detail Listing By Buyer

......................................................................................... 1368

............................................................................................ 1369

POX4100 - PO To Requisition XREF

POX5001 - Receiver Summary

............................................................................................... 1369

.......................................................................................................... 1369

POX5010 - Receiver Shipto Detail

POX5020 - Receiver Account Detail

................................................................................................... 1369

................................................................................................ 1369

POX5030 - Receipt Delivery Detail .................................................................................................... 1369

POY1100 - Requisition to PO XREF ................................................................................................. 1369

POY3031 - Contract Activities

POY5001 - Receiver Summary

.......................................................................................................... 1370

.......................................................................................................... 1370

POY5020 - Receiver Account Detail

POY5030 - Receipt Delivery Detail

................................................................................................. 1371

................................................................................................... 1371

POY5035 - Shop Floor Receipt Delivery

POY5050 - Return To Vendor Detail

.......................................................................................... 1371

................................................................................................ 1372

Index .......................................................................................................................................................... 1373

xxxvi Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

PeopleSoft Enterprise Purchasing Preface

This preface discusses:

PeopleSoft products.

PeopleSoft application fundamentals.

Pages with deferred processing.

PeopleSoft Enterprise Purchasing default hierarchies.

Common elements in this PeopleBook.

Note. This PeopleBook documents only page elements that require additional explanation. If a page element

is not documented with the process or task in which it is used, then it either requires no additional explanation or is documented with the common elements for the section, chapter, or PeopleBook.

PeopleSoft Products

This PeopleBook refers to these products:

Oracle's PeopleSoft Enterprise Asset Management.

Oracle's PeopleSoft Enterprise Cost Management.

Oracle's PeopleSoft Enterprise Mobile Inventory Management

Oracle's PeopleSoft Enterprise Collaborative Supply Management.

Oracle's PeopleSoft Enterprise eProcurement.

Oracle's PeopleSoft Enterprise eSupplier Connection.

Oracle's PeopleSoft Enterprise Supply Planning Multisite Material Planner and PeopleSoft Enterprise

Supply Planning Advanced Multisite Planner.

Oracle's PeopleSoft Enterprise Manufacturing.

Oracle's PeopleSoft Enterprise Flow Production.

Oracle's PeopleSoft Enterprise Engineering.

Oracle's PeopleSoft Enterprise General Ledger.

Oracle's PeopleSoft Enterprise Inventory.

Oracle's PeopleSoft Enterprise Maintenance Management.

Oracle's PeopleSoft Enterprise Order Management.

Oracle's PeopleSoft Enterprise Payables.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

xxxvii

Preface

Oracle's PeopleSoft Enterprise Project Costing.

Oracle's PeopleSoft Enterprise Product Configurator.

Oracle's PeopleSoft Enterprise Quality.

Oracle's PeopleSoft Enterprise Receivables.

Oracle's PeopleSoft Enterprise Strategic Sourcing.

Oracle's PeopleSoft Enterprise Purchasing.

Oracle's PeopleSoft Enterprise CRM Call Center Applications.

Oracle's PeopleSoft Enterprise Integrated FieldService.

PeopleSoft Application Fundamentals

The PeopleSoft Enterprise Purchasing PeopleBook provides you with implementation and processing information for the Oracle's PeopleSoft Enterprise Purchasing system. However, additional, essential information describing the setup and design of the system resides in companion documentation. The companion documentation consists of important topics that apply to many or all of the Oracle's PeopleSoft applications across the Financials, Enterprise Service Automation, and Supply Chain Management product lines. You should be familiar with the contents of these PeopleBooks.

The following companion PeopleBooks contain information that applies specifically to Oracle's PeopleSoft

Enterprise Purchasing:

PeopleSoft Enterprise Application Fundamentals PeopleBook

PeopleSoft Enterprise Managing Items PeopleBook

PeopleSoft Enterprise Mobile Inventory Management PeopleBook

PeopleSoft Enterprise Global Options and Reports PeopleBook

PeopleSoft Enterprise Commitment Control PeopleBook

PeopleSoft Enterprise Source-To-Settle Common Information PeopleBook

PeopleSoft Working With Third-Party Applications PeopleBook

PeopleSoft Enterprise Supply Chain Management Integrations PeopleBook

PeopleSoft Enterprise SCM Electronic Data Interchange Messaging PeopleBook

xxxviii Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Preface

Pages With Deferred Processing

Several pages in Oracle's PeopleSoft Enterprise Purchasing operate in deferred processing mode. Most fields on these pages are not updated or validated until you save the page or refresh it by clicking a button, link, or tab. This delayed processing has various implications for the field values on the page, for example, if a field contains a default value, any value you enter before the system updates the page overrides the default.

Another implication is that the system updates quantity balances or totals only when you save or otherwise refresh the page.

PeopleSoft Enterprise Purchasing Default Hierarchies

Oracle's PeopleSoft Enterprise Purchasing application defaulting behavior is discussed in the Using Default

Hierarchies chapter. The information in this chapter replaces default documentation at the field level and provides the same information efficiently in a central location.

In the chapter, we provide charts of transaction and item default sources, as well as explanations of multicurrency pricing calculation, unit of measure assignment and conversion, and vendor and vendor location selection.

PeopleBooks and the PeopleSoft Online Library

A companion PeopleBook called PeopleBooks and the PeopleSoft Online Library contains general information, including:

Understanding the PeopleSoft online library and related documentation.

How to send PeopleSoft documentation comments and suggestions to Oracle.

How to access hosted PeopleBooks, downloadable HTML PeopleBooks, and downloadable PDF

PeopleBooks as well as documentation updates.

Understanding PeopleBook structure.

Typographical conventions and visual cues used in PeopleBooks.

ISO country codes and currency codes.

PeopleBooks that are common across multiple applications.

Common elements used in PeopleBooks.

Navigating the PeopleBooks interface and searching the PeopleSoft online library.

Displaying and printing screen shots and graphics in PeopleBooks.

How to manage the locally installed PeopleSoft online library, including web site folders.

Understanding documentation integration and how to integrate customized documentation into the library.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

xxxix

Preface

Application abbreviations found in application fields.

You can find PeopleBooks and the PeopleSoft Online Library in the online PeopleBooks Library for your

PeopleTools release.

Common Elements Used in This PeopleBook

Description

Effective Date

Free-flow text up to 30 characters.

Date on which a table row becomes effective; the date that an action begins. For example, if you want to close out a ledger on June 30, the effective date for the ledger closing would be July 1. This date also determines when you can view and change the information. Pages or panels and batch processes that use the information use the current row.

Language or Language

Code

The language in which you want the field labels and report headings of your reports to print. The field values appear as you enter them.

Language also refers to the language spoken by an employee, applicant, or nonemployee.

Process Frequency

(group box)

Process Monitor

Designates the appropriate frequency in the Process Frequency group box:

Once executes the request the next time the batch process runs. After the batch process runs, the process frequency is automatically set to Don't Run.

Always executes the request every time the batch process runs.

Don't Run ignores the request when the batch process runs.

This link takes you to the Process List page, where you can view the status of submitted process requests.

Report ID

Report Manager

Recipient's

Request ID

Run

The report identifier.

This link takes you to the Report List page, where you can view report content, check the status of a report, and see content detail messages (which show you a description of the report and the distribution list).

Select to have a report print in the language defined for the recipient of the report.

A request identification that represents a set of selection criteria for a report or process.

This button takes you to the Process Scheduler request page, where you can specify the location where a process or job runs and the process output format.

xl Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Run Control ID

Short Description

Specified

Status

User ID

Preface

Each run control you create receives a unique run control ID. When you select a process from a menu, a search dialog box appears, asking for a run control ID. If you're in Add mode, enter a new ID for the run control you're about to define. If you're in Update/Display mode, enter an existing run control ID or click the

Search button and select from the list of available run control IDs.

Free-flow text up to 15 characters.

Select to have a report print in the language that you specify in the Language field.

Your options in this field are Active or Inactive. By linking status and effective date, you can retain historical information and plan future implementation. For auditing purposes, PeopleSoft encourages inactivating data that is no longer in use instead of deleting it.

The system identifier for the individual who generates a transaction.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

xli

Part 1

Setting Up PeopleSoft Purchasing

Chapter 1

Getting Started With PeopleSoft Purchasing

Chapter 2

Using User-Definable Fields

Chapter 3

Defining PeopleSoft Purchasing Business Units and Processing Options

Chapter 4

Defining Purchasing Item Information

Chapter 5

Defining Miscellaneous Charges and Landed Costs

Chapter 6

Using Workflow

Chapter 7

Using Default Hierarchies

Chapter 8

Using Commitment Control

Chapter 9

Running Document Tolerances

Chapter 10

Using Entry Events

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

1

Chapter 1

Getting Started With PeopleSoft

Purchasing

This chapter provides an overview of PeopleSoft Purchasing business processes and discusses:

PeopleSoft Purchasing integrations.

PeopleSoft Purchasing implementation.

PeopleSoft Purchasing Business Processes

The PeopleSoft Purchasing business processes include:

Requests for quotes

Procurement cards

Procurement contracts

Vendor rebates

Online and batch requisition creation

Requisition change orders

Requisition reconciliation

Online and batch purchase order creation

Purchase order change orders

Purchase order reconciliation

Receiving

Inspections

Returns to vendors

Procurement analysis

We cover these business processes in the business process chapters in this PeopleBook.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

3

4

Getting Started With PeopleSoft Purchasing Chapter 1

PeopleSoft Purchasing Integrations

PeopleSoft Purchasing integrates with the following PeopleSoft applications:

PeopleSoft Asset Management

PeopleSoft eProcurement

PeopleSoft eSupplier Connection

PeopleSoft Supply Planning Multisite Material Planner, Supply Planning Advanced Multisite Planner, and Manufacturing

PeopleSoft Flow Production

PeopleSoft General Ledger

PeopleSoft Inventory

PeopleSoft Mobile Inventory Management

PeopleSoft Maintenance Management

PeopleSoft Order Management

PeopleSoft Payables

PeopleSoft Project Costing

PeopleSoft Product Configurator

PeopleSoft Quality

PeopleSoft Receivables

PeopleSoft Strategic Sourcing

PeopleSoft Supplier Contract Management

We cover integration considerations in the implementation chapters in this PeopleBook.

Supplemental information about third-party application integrations is located on the My Oracle Support website.

PeopleSoft Asset Management

A direct link with PeopleSoft Asset Management streamlines the entry of asset information. Seamless interaction between PeopleSoft Purchasing, PeopleSoft Asset Management, and PeopleSoft Payables enables you to pass asset information from both Purchasing and Payables using a common process, capitalization of assets at point of receipt, and process modifications to existing assets.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 1 Getting Started With PeopleSoft Purchasing

PeopleSoft eProcurement

Close integration between PeopleSoft eProcurement and PeopleSoft Purchasing enables you to share common control data, such as item definitions for both PeopleSoft eProcurement and PeopleSoft Purchasing. It enables you to create requisitions, purchase orders, receipts, and other transactions that will be stored in shared tables.

The combination offers a complete solution for direct, indirect, service, and project purchases in an integrated environment.

PeopleSoft eSupplier Connection

Self-service Web transactions enable you to give your vendors access to address and contact information, saving your employees time and effort. With PeopleSoft eSupplier Connection, you can also give vendors view access for review purposes to account balances, invoices, orders, payments, receipts, schedule information, and kanban requests. Security features make it easy for vendors to grant appropriate access to their own employees, removing the administrative burden from your employees. At the same time, your employees retain the power to maintain vendor employees, if necessary. Of course, you always control which vendors have access to your PeopleSoft site and which data they can view and change.

PeopleSoft Supply Planning Multisite Material Planner, Supply Planning Advanced Multisite

Planner, and Manufacturing

PeopleSoft Supply Planning Multisite Material Planner, Supply Planning Advanced Multisite Planner, and

Manufacturing send purchase orders and change orders directly to the PeopleSoft Purchasing database tables.

Orders for subcontracted services from your shop floor, planned orders, and requisitioned items can be processed identically, and yet you can still distinguish them and set up separate processing rules for each type.

PeopleSoft Flow Production

PeopleSoft Purchasing and Flow Production work together to provide a powerful automated tool for signaling replenishment and moving material within the supply chain. This is achieved by effectively communicating production and material replenishment signals by a variety of methods, such as creating and scanning kanban cards and labels, routing replenishment requests, or triggering replenishment through completions.

PeopleSoft General Ledger

Commitment Control, a subsystem of PeopleSoft General Ledger, is an optional feature for PeopleSoft

Purchasing that enables you to control commitments and expenditures by checking them against predefined, authorized budgets. This feature can be activated for specific products and business units. Commitment

Control can be used to automatically check pre-encumbrances, encumbrances, and expenditures against control budgets. It can detect and notify you of pending budget exceptions, and also freeze the affected transactions. It can also take into consideration the budget tolerances and revenue types that you want the system to use to increase expenditure limits.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

5

Getting Started With PeopleSoft Purchasing Chapter 1

PeopleSoft Purchasing and General Ledger also support period-end, on-demand receipt accrual, also known as flow-through receipt accrual. When you use the PeopleSoft Payables Matching module, this process backs out previous transactions before new transactions can be generated. The original transactions for which reversals have just been created are flagged as canceled. Then the process generates new transactions for receipts that qualify for accrual and creates new transactions in the staging record for each receipt line.

Finally, encumbrance transactions are generated for the current period and reversal transactions are generated for the next period. When you run the Receipt Accrual process at the end of each accounting period, the process accrues unbilled receipt amounts in a receipt accrual liability account and debits identical amounts from the designated expense accounts. PeopleSoft Purchasing supports period-end receipt accrual for expensed items where you have received the goods from the vendor, but the vendor has not yet invoiced your company. It also supports receipt accrual for expensed items, where a non-purchase order receipt has been entered. You can control whether the system accrues for one of the scenarios, both scenarios, or not at all.

PeopleSoft Inventory

The close integration between PeopleSoft Purchasing and PeopleSoft Inventory enables you to share common item definitions and set up items from one menu for both PeopleSoft Purchasing and PeopleSoft Inventory. It enables you to create replenishment requests based on defined inventory levels; create material stock requests to fill purchase requests; update inventory upon receipt of goods; and include the miscellaneous charges (such as freight, duty, and tax) for a purchase in the item's inventory cost calculations. PeopleSoft's extensive consignment inventory feature enables you to implement this strategy across your enterprise. Inventory receipts can be recorded, holding the recognition of ownership until after the goods are consumed from your inventory.

Integration with PeopleSoft Inventory means that you can include the landed cost charges in the item's cost.

Landed cost charges can include expenses such as freight, insurance, duty, and handling. You can create cost templates that specify which cost charges to attach to any combination of item, item category, vendor, vendor location, ship-to ID, and purchasing business unit. In PeopleSoft Purchasing, you can also directly associate cost templates and individual charges with a purchase order header or purchase order schedule.

Using the Pegging workbench, you can optionally tie item demand to supply provided by a specific requisition or purchase order. Multiple demand lines can be satisfied by a single schedule or, alternatively, multiple schedules may be used to satisfy a single demand. The pegging workbench can also be accessed from within the Requisition and Purchase Order maintenance pages. Once the tie between the specific purchase order or requisition is made, notifications are sent to the appropriate owners whenever changes to either the supply or the demand are made.

PeopleSoft Mobile Inventory Management

PeopleSoft Purchasing integrates with PeopleSoft Mobile Inventory Management to create receipts and purchase order deliveries using mobile devices, such as hand held devices, phones or bar code readers. The

Mobile Inventory Management application provides tools to integrate mobile devices to the PeopleSoft

Supply Chain Management system.

Purchasing information collected using mobile devices is transmitted to and recorded in the Purchasing system. Using mobile devices, you can receive inventory or non-inventory items, with or without associated purchase orders. Receipts with a purchase order can be for items that will be stocked in inventory or for items that will go directly to par locations or go directly to various departments. A receipt without a purchase order

(ad hoc receipt) can be interfaced to the same products as a purchase order receipt.

After receiving the stock, you can use the Mobile Delivery task flow in Mobile Inventory Management to record the final destination for delivered items, view location and ship to information relevant to the delivery of the items, and to whom the items were delivered. Delivery information exists at the receipt distribution level and originates from either a requisition or purchase order.

6 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 1 Getting Started With PeopleSoft Purchasing

PeopleSoft Maintenance Management

PeopleSoft Purchasing integrates with PeopleSoft Maintenance Management to acquire parts and services needed for the maintenance and repair of assets.

Requisitions and purchase orders can be created to acquire parts and services for a work order that is created in PeopleSoft Maintenance Management. The work order link to the requisition or purchase order is maintained through out the procurement life cycle. As parts are received notification is sent to the appropriate maintenance personnel. In addition, once work is complete on the work order, excess parts can be returned to the supplier.

PeopleSoft Order Management

Through the requisition loader process, PeopleSoft Order Management sends direct ship orders, and changes to those orders, to PeopleSoft Purchasing.

Within Sales Order entry, users will also have the option of sourcing the demand directly from PeopleSoft

Purchasing. When demand for an item on a sales order is created, the Customer Service Representative will have the option of tying the demand to existing supply from a requisition or purchase order or to create a new purchase order to fulfil the demand. When a new PO is created, the CSR may optionally preselect the vendor.

Once this link is made, the purchased items can either be drop shipped directly to the customer site or received into inventory and shipped at a later time. When changes to either the demand or the supply are made, notifications are sent so the appropriate documents can be updated.

PeopleSoft Payables

The interaction of PeopleSoft Purchasing and PeopleSoft Payables data and processing enables you to match vouchers with all purchase order and receiver details, and to generate payments without waiting for invoices, using the Evaluated Receipt Settlement matching process. In addition, the PeopleSoft Payables voucher build process automatically generates invoices from Return to Vendor transactions and Procurement Card statements created in PeopleSoft Purchasing to streamline and centralize voucher creation. With instant access to all related current and historical procurement data, the procurement analysis tools enable you to view trends or track one item across all of procurement.

PeopleSoft Purchasing purchase order contracts and PeopleSoft Payables vouchers components are combined in one place within the system, providing full contract functionality through a single user interface.

In addition, vendor rebate claims are sent to PeopleSoft Payables for settlement (to net the vendor balance in the next pay-cycle) or for rebate and VAT accounting entries posting depending on the rebate agreement settlement method. Vendor rebate claims are sent to PeopleSoft Payables as an adjustment voucher using the

Process Claims Driver process. The Process Claims Driver process then initiates the Claim Settlement

Process for AP process (claim settlement process for account payables process). Then when an adjustment voucher is created PeopleSoft Payables sends that information back to PeopleSoft Purchasing.

Plus, prepayment vouchers can be sent from PeopleSoft Purchasing to the voucher staging tables when loading procurement card statements if you so choose. These prepayment vouchers include the procurement card transactions associated with a purchase order.

PeopleSoft Project Costing

PeopleSoft Purchasing creates requisitions based on project activity requests in PeopleSoft Project Costing and returns ordered materials transactions to Project Costing as committed costs.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

7

8

Getting Started With PeopleSoft Purchasing Chapter 1

PeopleSoft Product Configurator

PeopleSoft Purchasing can place requisitions and purchase orders, as well as, receive requests from Order

Management for configured items.

PeopleSoft Quality

Direct integration with PeopleSoft Quality enables you to maintain detailed quality data, such as defect descriptions, required measurements, and cause/action information. Vendors, items, lot numbers, and serial numbers are passed to PeopleSoft Quality. By using the integration between PeopleSoft Purchasing and

Quality, you can do extensive statistical and graphical analyses on receiving inspection data, including Pareto diagrams, control charting, and distribution analysis.

PeopleSoft Receivables

Vendor rebate claims with a settlement method of check, credit memo, direct debit, draft, or electronic funds transfer are sent to PeopleSoft Receivables for expected payment as a pending item using the Process Claims

Driver process. The Process Claims Driver process then initiates the Claim Settlement Process for AR process

(claim settlement process for account receivables process). Then when payment is received for these pending items PeopleSoft Receivables sends that payment information back to PeopleSoft Purchasing.

PeopleSoft Strategic Sourcing

With PeopleSoft Strategic Sourcing, requisitions created from PeopleSoft Purchasing can be converted into sourcing events to gather competitive pricing, analyze bids, and award to the most qualified bidders. Once an event is awarded, either Purchase Orders or Vendor Contracts can be automatically created in PeopleSoft

Purchasing to leverage the pricing arrangements and terms negotiated during the execution of the event.

PeopleSoft Supplier Contract Management

Using PeopleSoft Supplier Contract Management with Purchasing, contract specialists can create authored contract documents that can be associated to transaction information contained in purchase orders or requisitions. When using Supplier Contract Management with procurement contracts the system can also track contract compliance using contract agreement capability as well as spend notifications at the header, line, and category levels.

PeopleSoft Purchasing Implementation

PeopleSoft Setup Manager enables you to review a list of setup tasks for your organization for the products that you are implementing. The setup tasks include the components that you must set up, listed in the order in which you must enter data into the component tables, and links to the corresponding PeopleBook documentation.

PeopleSoft Purchasing also provides component interfaces to help you load data from your existing system into PeopleSoft Purchasing tables. Use the Excel to Component Interface utility with the component interfaces to populate the tables.

This table lists all of the components that have component interfaces:

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 1

Component

ITM_MFG_UPN

ITM_SHIPTO_VNDR

LOCATION_TBL

PURCH_ITEM_ATTR

REQUESTOR_TBL

Component Interface

ITM_MFG_UPN_CI

ITM_SHIPTO_VNDR_CI

LOCATION_TBL_CI

PURCH_ITEM_ATTR_CI

REQUESTOR_TBL_CI

Getting Started With PeopleSoft Purchasing

Reference

See PeopleSoft Enterprise Managing

Items 9.1 PeopleBook, "Working with

Items," Using Universal Item

Identifiers.

See Chapter 4, "Defining Purchasing

Item Information," Selecting Vendors

Based on Item Ship To and Item

Vendor Locations, page 110.

See PeopleSoft Enterprise Source-to-

Settle Common Information 9.1

PeopleBook, "Defining Procurement

Options," Defining Ship To

Locations.

See Chapter 4, "Defining Purchasing

Item Information," Defining

Purchasing Item Attributes, page 74.

See PeopleSoft Enterprise Source-to-

Settle Common Information 9.1

PeopleBook, "Defining Procurement

Options," Defining Requesters.

Other Sources of Information

In the planning phase of your implementation, take advantage of all PeopleSoft sources of information, including the installation guides, table-loading sequences, data models, and business process maps. A complete list of these resources appears in the preface in the PeopleSoft Enterprise Application Fundamentals

PeopleBook, with information about where to find the most current version of each.

See Also

"PeopleSoft Enterprise Purchasing Preface," page xxxvii

Enterprise PeopleTools PeopleBook: PeopleSoft Setup Manager

Enterprise PeopleTools PeopleBook: PeopleSoft Component Interfaces

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

9

Chapter 2

Using User-Definable Fields

This chapter provides an overview of user-definable fields and discusses how to set up user-definable fields.

Note. User-definable fields can also be used in PeopleSoft Payables through voucher entry and the Voucher

Build process.

Understanding User-Definable Fields

PeopleSoft Purchasing enables you to define fields that can be attached to purchasing documents and passed through the system without affecting PeopleSoft Purchasing functions. You can populate user-defined fields using the PeopleSoft Application Designer or add them to browser pages for the end users. Because the structural design is provided, you do not need to extensively modify the system to take advantage of this feature.

System defined subrecords are available at header, line, schedule, and distribution levels in PeopleSoft

Purchasing. Each subrecord is delivered with a one-character field that can be edited, modified, and renamed to suit your needs. You can also add fields that you create to the subrecords.

The data from each level of a document's subrecord flows to downstream documents. For example, if you source a requisition to a purchase order, the subrecord for each level on the requisition carries over to the purchase order accordingly.

Note. A header subrecord may not copy from one document to another if the target document can be sourced

from multiple documents. For example, you may copy a new purchase order from existing requisitions.

Because you can copy lines from multiple requisitions to a single purchase order, the system does not copy the header subrecord from the requisition.

There are six subrecords for adding user-definable fields to purchasing transactions:

Subrecord Type

Header Subrecord

Line Subrecord

Schedule Subrecord

Distribution Subrecord

Receiving Subrecord

Subrecord Name

PUR_USR_HDR_SBR

PUR_USR_LIN_SBR

PUR_USR_SHP_SBR

PUR_USR_DST_SBR

PUR_USR_RV_SBR

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

11

Using User-Definable Fields Chapter 2

Subrecord Type

RTV Subrecord (return to vendor subrecord)

Subrecord Name

PUR_USR_RTV_SBR

To compile a listing of all of the PeopleSoft records that include these subrecords, you can use this sample

SQL to query the PeopleSoft database:

SELECT A.RECNAME, A.FIELDNAME, B.RECTYPE, B.OBJECTOWNERID

FROM PSRECFIELD A, PSRECDEFN B

WHERE A.RECNAME = B.RECNAME

AND A.FIELDNAME IN('PUR_USR_HDR_SBR', 'PUR_USR_LIN_SBR', 'PUR_USR_SHP_SBR', 'PUR_

USR_DST_SBR', 'PUR_USR_RV_SBR', 'PUR_USR_RTV_SBR')

Setting Up User-Definable Fields

Use PeopleSoft Application Designer to use the delivered fields, as well as to modify them or add new fields to the delivered subrecords.

You can add the fields to the pages and display them in the PeopleSoft Purchasing browser pages, or use them only behind the scenes. You can also populate the fields behind the scenes and then display them on the browser pages.

Note. If you choose to insert new fields into any of the subrecords, you must alter the tables to avoid losing

application data that already exists in the tables.

Only those with technical knowledge of PeopleSoft Application Designer and PeopleCode should modify or add to the delivered subrecords.

To compile a list of tables that must be altered by a data base administrator, you can use this sample SQL statement, altering the criteria "A.FIELDNAME =" to reference the subrecord modified. This SQL lists the tables and views for the Header subrecord, PUR_USR_HDR_SBR:

SELECT A.RECNAME, A.FIELDNAME, B.RECTYPE, B.OBJECTOWNERID

FROM PSRECFIELD A, PSRECDEFN B

WHERE A.RECNAME = B.RECNAME

AND A.FIELDNAME = 'PUR_USR_HDR_SBR'

AND B.RECTYPE IN (0, 1, 7)

ORDER BY B.RECTYPE, A.RECNAME

See Also

Enterprise PeopleTools PeopleBook: PeopleSoft Application Designer Developer's Guide

Enterprise PeopleTools PeopleBook: PeopleCode Developer's Guide

12 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3

Defining PeopleSoft Purchasing Business

Units and Processing Options

This chapter provides an overview of business units in PeopleSoft Purchasing and discusses how to:

Establish PeopleSoft Purchasing business units.

Establish change options and approval rules.

Establish purchasing processing options.

Prepare PeopleSoft Purchasing value-added tax (VAT) environments.

Understanding Business Units in PeopleSoft Purchasing

A business unit is an operational subset of an organization that tracks and maintains its own set of requisitions and purchase orders. Each business unit has its own way of storing information and its own processing guidelines. PeopleSoft Purchasing business units share vendor, purchase order, and receiving information with PeopleSoft Payables business units in the same setID.

After you determine how many business units that you need and how to organize them, define them in the

PeopleSoft Purchasing system.

Note. The information in this section, which describes some of the essential traits of business units as applied

to PeopleSoft Purchasing, can help you determine the best way to define business units for the PeopleSoft

Purchasing implementation. PeopleSoft implementation personnel can also help you define the appropriate business unit structure.

Some purchasing transactions use business units as key identifiers. For example, you cannot create a single purchase order that includes items that have different business unit requests. Each business unit that is requesting items generates a separate purchase order.

Define business units in this order:

1. Define generic PeopleSoft business units.

2. Define PeopleSoft General Ledger business units.

3. Link PeopleSoft business units to PeopleSoft Purchasing.

4. Specify requisition-processing and purchase order-processing information for PeopleSoft Purchasing business units.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

13

Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

5. Link PeopleSoft General Ledger business units to PeopleSoft Purchasing for general ledger distribution needs.

Specifying Responsibility

You can establish separate business units to specify areas of responsibility. For example, a department may be responsible for purchasing a particular type of item. You can establish a business unit specifically for this department. Using strategically created business units enables you to group purchases for analysis. The business unit configuration can also help you maintain the required level of accounting control.

Interunit Accounting

PeopleSoft Purchasing interunit accounting enables you to track interunit purchases among PeopleSoft

General Ledger business units. If you require this, designate each of the organizational entities as a

PeopleSoft General Ledger business unit. If you've centralized the procurement practices, you can define one

PeopleSoft Purchasing business unit that can generate charges to each PeopleSoft General Ledger business unit.

PeopleSoft General Ledger Considerations

A PeopleSoft Purchasing business unit must be associated with a PeopleSoft General Ledger business unit, although this does not have to be a one-to-one relationship. You can place multiple PeopleSoft Purchasing business units under one PeopleSoft General Ledger business unit, or you can charge multiple PeopleSoft

General Ledger business units from one PeopleSoft Purchasing business unit. Often, the PeopleSoft

Purchasing business units will be the same as the PeopleSoft General Ledger business units.

PeopleSoft Payables Considerations

To pass accounting information from PeopleSoft Purchasing to PeopleSoft Payables and through to

PeopleSoft General Ledger, you must install PeopleSoft Payables and PeopleSoft Purchasing in the same database. This requirement also applies if you want to use the matching functionality that PeopleSoft software provides.

You don't need a one-to-one relationship between a PeopleSoft Purchasing business unit and a PeopleSoft

Payables business unit. One PeopleSoft Payables business unit can process data for many PeopleSoft

Purchasing business units, and multiple PeopleSoft Payables business units can create vouchers for one

PeopleSoft Purchasing business unit. However, you must configure these business units to share the same set of vendors.

Vendors

A business unit can be a subset of the organization, but from purchasing and accounts payable perspectives, a business unit can also represent a group of vendors.

If you have multiple companies or subsidiaries with unique sets of vendor requirements, consider establishing separate business units for each set of requirements. You can share a set of vendors across business units, but you cannot share subsets of vendors. Within a PeopleSoft Purchasing business unit, you can access all of the vendors in the set that is assigned to that business unit, but you can't exclude subsets of vendors in that set.

14 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

See Also

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Using Interunit and Intraunit Accounting and ChartField Inheritance"

PeopleSoft Enterprise Payables 9.1 PeopleBook, "Running the Matching Process"

Establishing PeopleSoft Purchasing Business Units

To define the PeopleSoft Purchasing business units, use the Purchasing Business Unit component

(BUS_UNIT_PM).

This section discusses how to:

Create PeopleSoft Purchasing business units.

Define request for quote (RFQ) required rules.

Define standard comments.

Define matching options.

Define dispatch options.

Set up VAT defaults.

Copy VAT default setup.

Create business unit options.

Define transaction document autonumbering options.

Pages Used to Establish PeopleSoft Purchasing Business Units

Page Name

Purchasing Definition -

Business Unit Definition

Definition Name

BUS_UNIT_TBL_PM

RFQ Required Rule

(request for quote required rule)

RFQ_REQUIRED_RULE

Navigation

Set Up Financials/Supply

Chain, Business Unit

Related, Purchasing,

Purchasing Definition,

Business Unit Definition

Usage

Create PeopleSoft

Purchasing business units or update existing ones.

Click the Go To RFQ

Required Rule button on the

Purchasing Definition -

Business Unit Definition page.

Define and view details about the RFQ required rule.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

15

Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

Page Name

Standard Comments

Matching Options

Define Dispatch Options BUS_UNIT_PM_IMAGE

Entry Event Defaults

Definition Name

BUS_UNIT_PM_COMNT

BUS_UNIT_PM_MATCH

BUS_UNIT_PM_EE

VAT Defaults Setup (value added tax defaults setup)

VAT_DEFAULTS_DTL

Copy VAT Defaults From

(copy value added tax defaults from)

VAT_DFLT_SRCH_COPY

Navigation

Click the Edit Comments link on the Purchasing

Definition - Business Unit

Definition page.

Usage

Define standard comments to print on dispatched purchase orders.

Click the Matching link on the Purchasing Definition -

Business Unit Definition page.

Define matching rules.

Click the Define Dispatch

Options link on the

Purchasing Definition -

Business Unit Definition page.

Define file directory locations for images that you want to print on purchase orders.

Click the Entry Event

Defaults link on the

Purchasing Definition -

Business Unit Definition page.

Select default entry events at the business unit level.

Note. You can access this page if entry events are enabled.

See Chapter 10, "Using

Entry Events," page 225.

Click the VAT Default link on the Purchasing

Definition - Business

Unit Definition page.

Enter VAT defaults for the requisition, purchase orders,

RFQs, and procurement cards.

Set Up

Financials/Supply

Chain, Common

Definitions, VAT and

Intrastat, Value Added

Tax, VAT Defaults

Note. If you access this page by clicking the VAT

Default link on the

Purchasing Definition -

Business Unit Definition page, the VAT driver and

VAT driver keys are inherited from the PO

Business Unit Definition

(purchase order business unit definition) component and cannot be changed.

If you access this page by using the standard menu navigation, you can specify the VAT driver and any

VAT driver keys as applicable.

Click the Copy Defaults

From link on the VAT

Defaults Setup page.

Copy VAT defaults from one business unit to another.

16 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3

Page Name

Purchasing Definition -

Business Unit Options

Definition Name

BUS_UNIT_TBL_PM2

Purchasing Definition -

Document Numbering

BUS_UNIT_TBL_PM3

Defining PeopleSoft Purchasing Business Units and Processing Options

Navigation

Set Up Financials/Supply

Chain, Business Unit

Related, Purchasing,

Purchasing Definition,

Business Unit Options

Usage

Create business unit options or update existing ones.

Set Up Financials/Supply

Chain, Business Unit

Related, Purchasing,

Purchasing Definition,

Document Numbering

Define transaction document autonumbering options.

Creating PeopleSoft Purchasing Business Units

Access the Purchasing Definition - Business Unit Definition page (Set Up Financials/Supply Chain, Business

Unit Related, Purchasing, Purchasing Definition, Business Unit Definition).

Purchasing Definition - Business Unit Definition page

When you access this page in Add mode, you can enter only the unit description, default setID, and short description. Enter this information and click the Create BU (create business unit) button, which appears only in Add mode, to create the business unit. Then, or if you access the page in Update/Display mode, the remaining fields on the page become available for entry.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

17

Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

Process Option

Location

Select the processing option ID for this business unit to be used throughout the procurement cycle. Values are defined on the Purchasing Options - Purchasing

Options page. This defines options such as freight terms and payment terms for the business unit.

Select the location code for the physical location of this business unit. The system uses this code to derive the organization address that prints on dispatched transactions. Define values on the Location - Location Definition page.

Billing Location

Select the code for the location where invoices are sent for this business unit.

Define values on the Location - Location Definition page. By default, this information appears on transactions that are created for this business unit.

Close Days and Cancel

Days

Enter the number of days that a requisition or purchase order, or a canceled requisition or purchase order, must remain open after its last update activity before it is eligible for closure.

Cancel and close days enable you to delay the closure of requisitions and purchase orders after they are canceled or entirely received. If you are using

PeopleSoft Payables, you can also use cancel and close days to delay closure after requisitions or purchase orders are invoiced.

Note. The close days value that you define for the business unit is for purchase

order reconciliation and has no relationship to the close days value on the Close

Short Run control pages.

PS/GL

(PeopleSoft/general ledger)

Select to enable transactions for this business unit to be posted to the general ledger and to link this business unit to a VAT entity. The GL Unit (general ledger unit) field becomes available for entry.

GL Unit (general ledger

unit)

Select a PeopleSoft General Ledger business unit. By default, this business unit appears on transaction distribution lines for this PeopleSoft Purchasing business unit.

If you are linking this PeopleSoft Purchasing business unit to a VAT entity, enter the applicable PeopleSoft General Ledger business unit. You can access this link using the PeopleSoft General Ledger business unit. You can't directly link a

PeopleSoft Purchasing business unit to a VAT entity.

AM Unit (asset

management unit)

Select the default PeopleSoft Asset Management business unit for the transactions that this PeopleSoft Purchasing business unit creates. When you create a purchasing transaction, the PeopleSoft Asset Management business unit appears by default if the item is an asset. You can override this information at the transaction level.

Select if most of the asset purchases are capital items.

Capitalize

AP Unit (accounts

payable unit)

Select the PeopleSoft Payables business unit that is to be used on evaluated receipt settlement (ERS) purchases.

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Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Accrue SUT for ERS

orders (accrue sales and

use tax for evaluated receipt settlement orders)

Select if sales and use tax (SUT) should accrue for any ERS orders that this business unit creates.

SS Unit (strategic

sourcing unit)

Select the default PeopleSoft Strategic Sourcing (SS) business unit that is to be used for this PeopleSoft Purchasing business unit.

Note. When you enter the same PeopleSoft Strategic Sourcing business unit for

multiple PeopleSoft Purchasing business units, PeopleSoft Strategic Sourcing copies requisitions from multiple PeopleSoft Purchasing business units into an event.

Rate Type

Tax Vendor

Select the rate type to be used for currency conversion. By default, the currency code and rate type apply to all purchasing transactions for this business unit.

Select to integrate with a third-party tax vendor for tax processing. The system calculates tax from the third-party tax vendor (Vertex or Taxware) when it creates purchase orders online or when sourcing to a purchase order.

When you select this check box, depending on the tax vendor that you select, certain fields appear in the group box below this check box.

Note. This check box is available only if you select a tax vendor (Vertex or

Taxware) on the Installation Options - Overall page.

Taxware Group Box

This group box is available only if third-party Taxware or Vertex software is installed, and if the Tax Vendor check box is selected.

Company

Organization

Division

Department

Enter the tax vendor company code. This field appears for these third-party tax products: Vertex Q Series, Vertex O Series, and Taxware Sales and Use Tax.

The company code that you enter in this field passes information to the thirdparty Taxware or Vertex software as input parameters.

Enter the organization. This field appears instead of the Company field for the

Taxware Enterprise third-party tax product.

Enter the tax vendor division code. This field appears for these third-party tax products: Vertex Q Series, Vertex O Series, and Taxware Sales and Use Tax.

The division code passes information to the third-party Taxware or Vertex software as input parameters.

Enter the tax vendor department. This field appears only for the Vertex O Series third-party tax product.

The department code passes information to the third-party Taxware or Vertex software as input parameters.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

Use Freight Product

Code

Select this option to associate the freight with the tax vendor product code and to indicate applicable tax rates.

Note. This field is available only for Taxware.

RFQ Required Rule

Use this group box to define a threshold line amount and RFQ required rule that, when the amount is exceeded or the rule is met, requires a requisition item to go through the RFQ cycle before it is included on a purchase order.

Line Amount Threshold Enter a threshold amount. The threshold amount is the line amount limit that

triggers that an RFQ is required to source the requisition. When a user exceeds the threshold amount for a requisition line, the system resets the RFQ Required check box to selected for that line on the requisition.

For example, if you are buying something and it costs more than 1000 USD, the system requires that you get a couple of bids before it will source it to the recommended or specified vendor.

RFQ Required Rule

(request for quote required rule)

Select an RFQ rule from the rules defined in the RFQ Required Rules component.

Click the Go To RFQ Required Rule button to access the RFQ Required Rule page, where you can define and view details about the RFQ required rule.

See Also

Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Defining Purchasing

Processing Options, page 47

Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Preparing PeopleSoft

Purchasing VAT Environments, page 57

Chapter 24, "Closing Requisitions," page 575

Chapter 10, "Using Entry Events," page 225

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining Financials and Supply Chain

Management Common Definitions," Setting Up Locations

Defining RFQ Required Rules

Access the RFQ Required Rule page (click the Go To RFQ Required Rule button on the Purchasing

Definition - Business Unit Definition page).

20 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

RFQ Required Rule page

Use this page to define ChartField values that will set the RFQ Required option to Yes for requisitions created online or through the Requisition Loader process. You can also define the RFQ Required option in the

Purchasing Item Attributes or Item Category component when an RFQ is required any time that the item or category is specified on a requisition.

Some organizations require RFQ processing whenever a specific ChartField value is referenced on a requisition. For example, whenever a specified project is entered on a requisition, the funding requirements of the project require that the request go out for bid. The RFQ Required Rule page enables you to define the

RFQ Required flag based on that ChartField value. When a requisition is created, the system checks the

ChartField values that you define on this page and sets the RFQ Required option accordingly.

Set "RFQ Required

Flag" to "No" if

Contract exists (set

request for quote required flag to no if contract exists)

Select to bypass the RFQ cycle if a contract exists.

Note. The system ignores the Default Contract on Req check box setting when

the system applies the RFQ rule and you select this check box.

Select to supply by default the contract ID to the requisition line.

Default the found

Contract ID to

Requisition line

See Also

Chapter 26, "Managing Requests for Quotes," page 609

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

21

Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

Defining Standard Comments

Access the Standard Comments page (click the Edit Comments link on the Purchasing Definition - Business

Unit Definition page).

The comments that you enter on this page are printed on dispatched purchase orders if you select the Print BU

Comments (print business unit comments) check box on the Dispatch Purchase Orders page. You can set up these comments to contain the terms and conditions for purchase orders for this business unit.

See Also

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Setting Up Standard Comments

Chapter 31, "Dispatching and Printing Purchase Orders," page 935

Defining Matching Options

Access the Matching Options page (click the Matching link on the Purchasing Definition - Business Unit

Definition page).

Select the default matching rules for this business unit. If matching rules are defined at the vendor level, those rules will override business unit-level matching rules. You can override both the business unit and vendor level matching rules on the purchase order.

See Also

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Establishing Matching and Document Association Options

PeopleSoft Enterprise Payables 9.1 PeopleBook, "Running the Matching Process"

Defining Dispatch Options

Access the Define Dispatch Options page (click the Define Dispatch Options link on the Purchasing

Definition - Business Unit Definition page).

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Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Define Dispatch Options page

Print Image on Purchase

Order and PO Dispatch

Image Location

(purchase order dispatch image location)

Select to print an image (logo) on purchase orders, and enter the directory location of the image file.

Print Signature on PO

(print signature on purchase order) and PO

Dispatch Signature

Location (purchase order

dispatch signature location)

Select to print a signature on purchase orders, and enter the directory location of the signature file.

Template ID

Select the report template to use with this business unit to dispatch a purchase order. You use the report template to identify a XML Publisher report layout.

The template provides a common report layout when dispatching purchase orders for both PeopleSoft eProcurement and Purchasing.

If the Template ID field on this page is blank, then the system uses the default template on the XML Publisher Report Definition page ( Reporting Tools, XML

Publisher, Report Definition, Template).

This field appears only if you have selected the Enable XML Publisher check box on the Purchasing page of the Installation Options component. This check box selects the Oracle XML Publisher to format and print purchase orders during the dispatch process for both PeopleSoft Purchasing and PeopleSoft eProcurement. You use Oracle XML Publisher for reporting. It is a Java-based product within the Oracle Fusion Middleware family.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

.BMP

.JPG

.GIF

.EPS

Others

Image Locations

Consider these points when working with images and their locations:

For Structured Query Report (SQR) processes to work as designed, you must store associated images in external files.

The folder in which you store external image files must be shared.

For Microsoft Windows NT environments, define the directory locations using the universal naming convention (for example, \\server_name\folder_name\

).

When you run the PO Dispatch/Print (purchase order dispatch and print) process (POPO005), the image file to print on the purchase order is determined by the output format that you select on the Process Scheduler

Request page. The PO Dispatch/Print process takes the image file name that you enter here and parses out the file extension information. The process uses this file extension to determine the image type that the PRINT-

IMAGE command uses.

This table describes file extension values and their compatible image types to be used in the PRINT-IMAGE command:

File Extension

No extension

Image Type

BMP-FILE

BMP-FILE

JPEG-FILE

GIF-FILE

EPS-FILE

HPGL-FILE

The next two tables describe output type options that are available for the PO Dispatch/Print process on the

Process Scheduler Request page, along with their compatible output formats, output file extensions, and image types.

This first table represents output types for web, file, and email:

Output Format

CSV

Output File Extension

.CSV

Image Type That Works

None

HP .LIS

HPGL-FILE

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Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Output Format

HTM

LP

OTHER

PDF

PS

SPF

Output File Extension

.HTM

.LIS

.LIS

.PDF

.LIS

.SPF

This table represents output types for a printer:

Output Format

HP

LP

OTHER

PS

Output File Extension

None

None

None

None

Image Type That Works

JPEG-FILE, GIF-FILE, BMP-FILE

None

None

JPEG-FILE

EPS-FILE

BMP-FILE

Image Type That Works

HPGL-FILE

None

None

EPS-FILE

Note. The HPGL image type works with HP LaserJet printers.

Printing Images

To print an image:

1. Check the PSSQR.INI file to verify that the SQRDIR is set to the path where the SQR executables are stored.

2. Ensure that the drive that is storing the image has the correct permissions set.

3. Verify that the image is not corrupt.

4. In a UNIX environment, you can print only EPS-FILE image types.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

25

Defining PeopleSoft Purchasing Business Units and Processing Options

See Also

Chapter 31, "Dispatching and Printing Purchase Orders," page 935

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Preparing to Dispatch by Fax and Email

Enterprise PeopleTools PeopleBook: XML Publisher for PeopleSoft Enterprise

Chapter 3

Setting Up VAT Defaults

Access the VAT Defaults Setup page (click the VAT Default link on the Purchasing Definition - Business

Unit Definition page or select Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat,

Value Added Tax, VAT Defaults).

You can insert rows for any or all of the VAT driver keys, as well as the VAT country or state. You can also delete any existing rows.

Copy Values to New

Rows

Copy Defaults From

If you are inserting a row for a VAT driver key, select this check box to copy all the VAT defaults from the previous row to the new row. Otherwise, all VAT default fields for the new row will be blank.

Click to access the VAT Defaults Copy From page, which you can use to copy

VAT default specifications from another key combination for the same VAT driver.

Return to VAT Defaults

Sub-Search (return to

value-added tax defaults sub-search)

Click to return to the Purchasing Definition component.

VAT Reporting Country

(value-added tax reporting country)

Select the country or countries for which you are defining VAT defaults. For regular defaults, defaults are obtained for the VAT reporting country. For service

VAT treatment defaults, defaults are obtained for the supplier's location country.

Defaulting State

Default Details

As applicable, select the state for which you want to define VAT default values.

Enter the effective date, status and, if applicable, the VAT setID.

VAT Apportionment

Control (value-added tax

apportionment control)

When you create purchase orders for a PeopleSoft Purchasing business unit, the system selects a default business unit for VAT recovery and rebate calculations based on this value. Business units have different VAT recovery and rebate percentages based on their locations. Values are:

Dist GL BU (distribution general ledger business unit): Selects the PeopleSoft

General Ledger business on the purchase order distribution line.

Txn BU (transaction business unit): Selects the business unit on the purchase order header.

Txn GL BU (transaction general ledger business unit): Selects the PeopleSoft

General Ledger business unit on the purchase order header.

26 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Note. The remaining fields on the page vary based on the combination of VAT driver and VAT driver keys.

See the section on VAT fields for details about the fields and VAT drivers that appear.

See Also

PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook, "Working with VAT"

Copying VAT Default Setup

Access the Copy VAT Defaults From page (click the VAT Default link on the Purchasing Definition -

Business Unit Definition page and click the Copy Defaults From link on the VAT Defaults Setup page).

Search Criteria

Search

Copy From

Enter the criteria by which you want to search.

Click to retrieve the results based on the criteria entered.

Select a link for any of the results returned to view the details of the VAT setup on the Copy VAT Defaults Setup page. When you have viewed the details, you can click Copy to copy the VAT setup. The system returns you to the VAT

Defaults Setup page with the copied fields.

Or you can select the appropriate option for any of the results returned and click

Copy to copy from that row. The system returns you to the VAT Defaults Setup page with the copied fields.

Creating Business Unit Options

Access the Purchasing Definition - Business Unit Options page (Set Up Financials/Supply Chain, Business

Unit Related, Purchasing, Purchasing Definition, Business Unit Options).

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

28

Purchasing Definition - Business Unit Options page

PO Item Vendor

Security Option

(purchase order item vendor security option)

Origin

Select a value to indicate how the system handles edits to item and vendor combinations on purchase order lines:

Edit Required Must Use Item ID: A valid item ID with an established item and vendor relationship is required for each purchase order line. You can't order an item by description and must use an item that is defined in the Item Vendor tables.

Edit Required When Use Item ID: An item ID isn't required on the purchase order line, and you can order an item by description. However, if you order by item ID, the item must exist in an Item Vendor table. The difference between this and the No Edit Required value is that you are restricted to items that have an active purchase order vendor established.

No Edit Required: An item ID isn't required on the purchase order line, and you can order an item by description. If you order by item ID, you can order any item that is established in the Item tables for PeopleSoft Purchasing, even if no item and vendor relationship is established.

Select the origin code to be used on ERS invoices so that you can process ERS matching by origin in PeopleSoft Payables. PeopleSoft Purchasing can also use this code for reporting to identify transaction origins.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Receipt Date

Adjustment

Enter a number of days by which receiving dates can be adjusted. If you don't specify a value, receiving dates by default become the current system date and cannot be changed.

For example, entering 7 enables you to enter a receipt date that is plus or minus seven days from the current date. This is useful when an item is received and you don't have time to enter the receipt on the same business day. Without a receipt date adjustment value, you must enter the receipt using the next business day's date. Consequently, the entry could show a late delivery in the records when the delivery was actually on time.

DUNS Number(Dun and

Bradstreet number)

Enter a DUNs number.

Receipt Allocation Type Select the method to allocate the receipt amount across the distributions for the

schedule for the received items. Values are:

FIFO (first-in-first-out): Purchase order quantities are fulfilled based on the sequence in which they are added to the purchase order schedule. This is the default receipt allocation type.

Prorate: Purchase order quantities are fulfilled by calculating the percentage of received quantity to the total purchase order line quantity. The received quantity is then allocated to each distribution line using that percentage. This is for noninventory items only.

For example, if the schedule quantity is 300 and the schedule has three distribution lines, each distribution has a quantity of 100. If you receive a quantity of 75, each distribution is allocated a received quantity of 25.

Specify: Allocations are fulfilled by the user manually entering the receipt quantity or amount at the distribution level when receiving purchase order schedules with multiple distributions. This enables the specific allocation of the receipt quantity or amount by open purchase order distribution quantity or amount.

Note. The receipt allocation type that you select here appears as the default when

you create a receipt for this PeopleSoft Purchasing business unit.

Receipt Date Exchange

Rate

Select the date on which to base the receipt date exchange rate for purchase order receipts and receipts that are not purchase order receipts

Values are:

PO Date (purchase order date): Select to base the exchange rate on the purchase order header date.

Receipt Date: Select to base the exchange rate on the receipt date.

PO Price Edit (purchase

order price edit)

Select the purchase price edit: Values are:

Error

None

Warning

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29

Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

RTV Dispatch Option

(return to vendor dispatch option)

Select the dispatch method to use as this business unit's default value for the return to vendor (RTV) functionality. This functionality determines the default value for the return to vendor function on how the RTV will be dispatched to the supplier. The system uses the dispatch options that you define for the business unit as default values when user preferences are set by default to the business unit

RTV dispatch option. When you save information on this page, the settings you define become effective.

RTV dispatch option values for a business unit are:

Dispatch When Shipped: Select to submit the RTV Dispatch process automatically when all lines on the RTV have been shipped.

Manual: Select to indicate that the RTV transaction requires collaboration between groups and that you must submit the RTV Dispatch/Print process by using the Process Scheduler. This is the default value for the field.

See Chapter 40, "Managing Vendor Returns," Source Information Tab, page 1164.

See Chapter 40, "Managing Vendor Returns," Inventory Return Records, page

1145 and Chapter 40, "Managing Vendor Returns," Inventory Return Records, page 1145.

RTV Inventory Ship

Option (return to vendor

inventory ship option)

Select the return to vendor ship option that you want to use as this business unit's default value for the Inventory Process field on the RTV line.

RTV Inventory ship option values are:

Express: Select to use the RTV express option to process purchasing and inventory data collection transactions at the same time. This means that you can perform inventory issue (automatic issue) or adjustment (automatic adjustment) actions from within the Purchasing RTV component.

Note. The Express value will be automatically overridden on the RTV line if the

associated Inventory business unit is defined as a Warehouse Management

System (WMS) type. You define the warehouse setting using the Use External

Warehouse Control check box on the Business Unit Options page for Inventory.

Fulfillment: Select to set the user's preference to perform Inventory fulfillment processing for RTV transactions. This enables the user to create an Inventory material stock request transaction and to process it through Inventory fulfillment processing. The Fulfillment value is valid only for RTV processing when RTV line disposition is Ship.

Manual: Select to indicate that the RTV ship transaction must be completed manually. This option requires that you perform the Inventory Express manually to remove the items from inventory.

30 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

RTV Inventory Destroy

Option (return to vendor

inventory destroy option)

Select the return to the vendor destroy option that you want to use for this business unit's default value for the Inventory Process field on the RTV line.

RTV Inventory destroy option values are:

Express: Select to use the RTV express option for the RTV lines that have a disposition of Destroy. This means that the user can perform Inventory adjustment (automatic adjustment) actions from within the Purchasing RTV component.

Manual: Select to indicate that the RTV transaction must be manually adjusted within inventory. When you use the Manual option, the system does not perform the RTV adjustment function. You must use the Inventory Adjustment component to adjust balances for inventory returns that are to be destroyed.

Additional Business Unit Options

Allow Multicurrency

Reqs (allow

multicurrency requisitions)

Select to enable requisition lines with different currencies. Item-vendor pricing may be in a currency other than the business unit currency. The vendor currency is automatically converted to the business unit currency for requisition approval purposes. When the requisition lines are sourced to a purchase order, the system uses the requisition currency (if sourced using Requisition Selection with Define

PO = 'Y'); otherwise, the vendor currency is used.

Calculate VAT On Req

(calculate value-added tax on requisitions)

Select to enable VAT to process and calculate onto requisitions and to pass the

VAT information from the requisition to other transactions in the procurement process.

Allow Multicurrency PO

(allow multicurrency purchase order)

Select to enable purchase orders to be entered in the vendor currency, even if the vendor currency differs from the business unit currency. If you do not select this check box, and requisitions are entered in a currency different from the business unit currency, the system creates purchase orders in the business unit currency.

The system converts requisition prices and amounts to the business unit currency of the purchase order.

Default Contract on Req

(default contract on requisition)

Select to automatically supply a contract to a requisition. The system searches for and ensures that the correct contract is selected for use with the requisition.

Along with selecting this check box, the system verifies that the Auto Default check box is selected on the Contract page. This makes the contract available to automatically default onto requisition and purchase order transactions.

You can override contracts that have been selected by the system. This enables you to receive contract prices for requisition items and to more accurately track budgets and pre-encumberance balances.

See Chapter 19, "Creating Requisitions Online," Contract Pricing for

Requisitions and Purchase Orders, page 436.

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

Allow Business Item

Attributes

Allow Receipt Load

Cascade

Select to enable attributes to be established for any item in this business unit. The business unit item attributes override those that you establish for the item in the

Item Definition - Purchasing Attributes component.

Note. Selecting the Allow Business Item Attributes check box is useful if you

must maintain item-specific attributes by business unit as well as by setID. For example, suppose that several of the business units normally purchase the same item, but each business unit has a different lead time for this item. If you enable business unit item attributes, the lead time that the business unit sets overrides the default lead time, and each business unit can set a different lead time for the same item.

Select to enable this business unit to receive quantities for a purchase order line and cascade that quantity over multiple schedules. For example, assume that you have one purchase order line for 150 items and three schedules for 50 items, each to be delivered a month apart. When the first shipment arrives for receiving, a quantity of 75 items exists. Rather than returning 25 of the items and waiting for the next shipment, you can receive 50 on the first schedule and cascade 25 to the second schedule. In effect, you receive these 25 items early and deduct them from the second schedule. When the next shipment arrives, you receive the remaining 25 items. You can cascade line quantities until an entire order is filled.

Note. The Allow Receipt Load Cascade check box is applicable only when you

are using the Receiver Load Application Engine process (PO_RECVLOAD) to build receivers from loaded data. This check box is typically used to load bar code transactional data into the system, which builds the data into receivers and cascades the quantities down to the purchase order lines and schedules appropriately.

32 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Default Contract on PO

(default contract onto purchase order)

Select to indicate that the system should automatically search for appropriate contracts for purchase order lines. The check box applies only to manually created purchase orders, and not orders created using a batch process. This automates the process of selecting the most appropriate contract for use with manually created purchase orders. The default value for the field is deselected.

If you select to search for contracts, the system begins its search for contracts with process types of Purchase Order, General, or Release-To-Single PO Only and that are in a current version with an Approved status. If the check box is deselected, the system does not search for a contract. If multiple contracts exist, the system selects the contract where the status is Approved, the version is current, and with the most recent (but not future) contract begin date.

After validating the contract and using it on the transaction, the system:

Updates released amounts and quantities.

Creates a contract event.

Updates the transaction with contract information.

This option does not apply to PeopleSoft Services Procurement project roles on the contract. Services Procurement searches for an applicable contract on the work order, and uses it on a purchase order regardless of the Default Contract

Flag check box value. This option also does not apply to blanket purchase orders.

See Chapter 19, "Creating Requisitions Online," Contract Pricing for

Requisitions and Purchase Orders, page 436.

Accrue PO Receipts

Accrue Non/PO Receipts

(accrue non/purchase order receipts)

Select to enable this business unit to accrue receipts for noninventory items without a purchase order.

Separate Inspection

Select to require that inspection information be entered apart from receiving information. Inspections can be performed on the receiving dock or in the inspection location to which the inventory item is routed.

Notify Inventory

Manager

Select to enable this business unit to accrue receipts for expensed items without invoices. When you run the Receipt Accrual process (PO_REVACCR), receipts for which you have not yet received an invoice are included in the process.

Select to include inventory workflow notifications for return to vendor processing. The system notifies users defined in the INV MGR role that goods are ready to be shipped back to the vendor. The system generates an email notification when the return disposition is Ship or Destroy for Inventory RTVs.

You can override the value for individual vendors using the Return to Vendor

Defaults page in PeopleSoft Purchasing.

See Chapter 40, "Managing Vendor Returns," Entering RTV Defaults, page 1170.

Tax Exempt

ID

Select to enable purchasing documents that are created in this business unit to be exempt from sales and use tax.

Enter the tax exempt identifier. The ID field becomes available when you select the Tax Exempt check box.

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

RTV Adjust Source

(return to vendor adjust source)

Select to enable the adjustment of source documents when items are returned to the vendor for replacement. If you select this check box, the net receipt quantity is adjusted down by the return to vendor (RTV) quantity using this formula:

(Net Receipt Quantity) = (Net Receipt Quantity)

(RTV Qty)

Allow Curr UOM Conv

Rate (allow current unit

of measure conversion rate)

Select to calculate the purchase order standard quantity using the current conversion rate at receiving or time of purchase order change. If you do not select this check box, or if you do not select the option at receiving or purchase order change, the system uses the purchase order conversion rate.

Note. This check box is available only when PeopleSoft Inventory is installed. If

PeopleSoft Inventory is not installed, receiving always uses the current conversion rate and won't update the purchase order distribution. Purchase order change uses the current conversion rate and updates the purchase order distributions.

RTV Adjust Fees (return

to vendor adjust fees)

Select to include adjustment fees when items are returned to the vendor. These fees could include restocking fees or other fees that are imposed on the transaction.

Allow PO Deletion

(allow purchase order deletion)

Select to enable authorized users to delete purchase orders in the selected business unit.

RTV Reopen PO (return

to vendor reopen purchase order)

Select to change the purchase order schedule status to Open when items are returned to the vendor for replacement. When the items are reshipped, this check box enables you to receive the items against the original schedule.

Note. If you are using commitment control, you can't reopen closed purchase

orders, and you will not be able to select this check box. This functionality is not available when you are using commitment control.

Allow Requisition

Deletion

Select to enable authorized users to delete requisitions in the selected business unit.

Sourcing Controls

% Unit Price

Tolerance/Tolerance

Over (percent unit price

tolerance/tolerance over) and% Unit Price

Tolerance/Tolerance

Under (percent unit price

tolerance/tolerance under)

Enter the percentage over and under by which the purchase order price can vary from the requisition price. By default, these values appear on requisitions that are created for this business unit.

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Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Liquidate Method

Allow Liquidate by

Quantity when

Distribute by Quantity

Select to indicate that the purchase order business unit is liquidated by quantity when distributed by quantity. If you do not select this check box, the Comm.

Cntrl. Budget Processor process automatically liquidates pre-encumbrance and encumbrance balances by amount only.

Note. The installation must include commitment control to use this option.

Default Liquidate

Method

Select a default liquidate method for the purchase order business unit. You can liquidate by quantity or amount.

Note. You must select the Allow Liquidate by Quantity when Distribute by Quantity check box to define a

quantity default liquidate method.

See Also

Chapter 22, "Tracking Requisition Changes," page 561

Chapter 39, "Inspecting Received Items," page 1125

Chapter 29, "Using Purchase Order Sourcing," page 807

Chapter 41, "Using Receipt Accrual," page 1189

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Creating Change Templates

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Creating Change Templates

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Defining Origin Codes

PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook, "Working with VAT"

PeopleSoft Enterprise eSupplier Connection 9.1 PeopleBook, "Acknowledging Purchase Orders Online"

Chapter 37, "Receiving Shipments," Maintaining Receipt Distribution Information, page 1082

Defining Transaction Document Autonumbering Options

Access the Purchasing Definition - Document Numbering page (Set Up Financials/Supply Chain, Business

Unit Related, Purchasing, Purchasing Definition, Document Numbering).

Select Requisitions, Purchase Orders, Receivers, Requests For Quotes, and Return to Vendors to enable autonumbering for the associated transaction. The last number that was assigned for each transaction appears.

You define autonumbering for contracts on the Set Controls - Contracts page.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

35

Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

Establishing Change Options and Approval Rules

This section discusses how to:

Define purchase order change options and approval requirements.

Define requisition change options and approval requirements.

See Also

Chapter 30, "Approving Purchase Orders," page 911

Chapter 21, "Approving Requisitions," page 535

Pages Used to Establish Change Options and Approval Rules

Page Name

PO Change Options

(purchase order change options)

Definition Name

BUS_UNIT_PO_APPR

Req Change Options

(requisition change options)

BUS_UNIT_REQ_APPR

Navigation

Set Up Financials/Supply

Chain, Business Unit

Related, Purchasing,

Purchasing Definition, PO

Change Options

Usage

Define purchase order change options and approval requirements for each business unit.

Set Up Financials/Supply

Chain, Business Unit

Related, Purchasing,

Purchasing Definition, Req

Change Options

Define requisition change options and approval requirements for each business unit.

Defining Purchase Order Change Options and Approval Requirements

Access the PO Approval Options page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing,

Purchasing Definition, PO Change Options).

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Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

PO Change Options page (1 of 2)

PO Change Options page (2 of 2)

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37

Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

Change Template

Change Order Map

Template

Select a change template for purchase orders within this business unit. A purchase order change template identifies which field changes on a purchase order cause the system to generate the following actions:

Create a change order if the fields are changed after a purchase order is dispatched.

Record change tracking.

Require re-approval of the purchase order or purchase order line using the approval workflow framework.

To create a change template for purchase orders, use the change template type of

Purchase Order.

See PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook

, "Defining Procurement Options," Creating Change Templates.

Select the change order map template. The Purchase Order Acknowledgements process uses this template to determine the fields that can be changed by the supplier on the purchase order acknowledgements pages using the EDX process.

Note. These fields must already exist on the online purchase order

acknowledgement pages.

Approval Framework Control

Use the Approval Framework Control group box to enable the Approval Workflow Framework for approving purchase orders at the header level, line level, or both. For the approval of purchase orders in PeopleSoft

Purchasing, you can choose between two workflow methods; the approval framework or the PeopleTools

Workflow Technology.

Note. The system displays a message that indicates whether the workflow approval framework is in use by

PeopleSoft Purchasing.

If approvals are not required for either the Approval Framework or Virtual Approver, the system automatically approves stockless purchase orders. The orders are approved even if the Create POs in

Approved Status option is deselected on the run control. The system ignores the buyer's purchase order creation status in the sourcing programs and only applies the run control value.

If approvals are required, the system goes through the stockless item approvals the same as it does for any other type of item where it checks the exception codes to bypass approvals.

38 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

PO Workflow Approval

Required (purchase order

workflow approval required)

Select to indicate that you want to use the approval framework for purchase order approvals. When you select this check box, you initiate PeopleSoft Approval

Framework and end the use of PeopleTools Virtual Approver (part of

PeopleTools workflow technology). Any current pending purchase order transactions will finish the approval process using the Virtual Approver. From this action forward, the system uses the approval workflow framework for new purchase orders.

Warning!

After initiating the approval framework, you cannot activate Virtual

Approver again.

When you select this check box, the system displays an additional group box on this page with the title Workflow Approval Not Required. This group box enables you to determine what sources of purchase orders do not require approval; for example, purchase orders created by a contract release may not need approval since a contract is in place. Both new purchase orders and changes to existing purchase orders are included in this group box.

Resubmit Workflow for

Quantity or Price

Decrease

Select to indicate that purchase orders require re-approval after the quantity or price has been decreased.

See PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework.

Automatically Approve Change Requests

Buyer Accepted POA

Source (buyer accepted

purchase order acknowledgements source)

Select to automatically approve change order requests that are generated by online purchase order acknowledgements (POAs) that a supplier enters directly into the system. This check box is selected by default.

Note. To use this option, the installation must include PeopleSoft eSupplier

Connection.

All Other Sources

Select to automatically approve change order requests that are generated by other change order sources such as the Close Backorders process, PeopleSoft Supply

Planning, PeopleSoft Order Management (direct shipment), PeopleSoft eProcurement (change requests), and PeopleSoft Manufacturing.

Workflow Approval Not Required

This group box only displays if you choose to use the approval workflow framework for purchase order approvals. Define the purchase order input sources that do not require approval by selecting the Not Required check box on the row.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

PO Create Exceptions

For newly created purchase orders, select the input sources do not require approval. The sources are:

Contract Releases: includes contract referenced purchase orders (CON) and contract releases.

PAR Location Replenishment: (CRT)

Manual and Expedite Requisitions

Order Management Referenced: includes batch and online sourcing (OMR).

Planning System: (PLL)

Request for Quotation: (RFQ)

Production/Shop Floor: from PeopleSoft Manufacturing (SFL)

Services Work Order: work orders from PeopleSoft Services Procurement

(SPO)

AutoSelect / Quick Source: purchase orders sourced from approved requisitions (SRC) and PeopleSoft eProcurement requisitions (EPO).

Work Order Management: work orders from PeopleSoft Maintenance

Management (WKM)

PO Change Request

Exceptions

For changes to an existing purchase order, select the input sources that do not require approval. The sources are:

Contract Release to Single PO: (BPA)

PAR Replenishment/Close Backorders:(CRT)

Order Management Referenced: includes batch and online sourcing (DRP).

PO Acknowledgements: (EDX)

Planning System: (PLN)

Production/Shop Floor: from PeopleSoft Manufacturing (PRD)

eProcurement Change Request: (REQ)

Virtual Approver Control

Use the Virtual Approver Control group box to determine your settings for approving purchase orders using the Virtual Approver feature. The Virtual Approver feature is part of the PeopleTools Workflow Technology.

For the approval of purchase orders in PeopleSoft Purchasing, you can choose between two workflow methods; PeopleSoft Approval Framework or the PeopleTools Workflow Technology. The Virtual Approver enables you to approve the purchase order at the header level. You can route a purchase order for approval based on the amount, the ChartFields used, or both. To implement workflow approvals, define the roles, rules, and routings using the PeopleSoft Application Designer, PeopleCode, and Workflow Administrator. Your system is delivered with basic approval rules already established.

40 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Note. The fields in this group box are unavailable for entry if you have selected the PO Workflow Approval

Required check box on this page. You can only choose one workflow approval method for purchase orders.

PO Approval Business

Process (purchase order

approval business process)

Select the business process for which you are establishing approval rules. This business process corresponds to the approval rule set. Define approval rule sets in

PeopleSoft Workflow Administrator.

PO Amount Approval

Needed (purchase order

amount approval needed)

Select to indicate that the purchase order amount should be approved.

PO Amount Approval

Rule Set (purchase order

amount approval rule set)

Select the approval rule set to be used to apply purchase order amount approvals.

Select to indicate that the purchase order ChartField should be approved.

PO ChartField

Approval Needed

(purchase order

ChartField approval needed)

PO ChartField

Approval Rule (purchase

order ChartField approval rule)

Select the approval rule set to be used to apply purchase order ChartField approvals.

When you select either the PO Amount Approval Needed (purchase order amount approval needed) or PO

ChartField Approval Needed (purchase order ChartField approval needed) check box, the system forces purchase order transactions to flow through the approval process before continuing through the purchasing life cycle.

If you do not select either of these check boxes, the purchasing authorizations that are defined on the User

Preferences - Procurement: Purchase Order Authorizations page determine approval statuses. In this case, an authorized user can change a transaction approval status from Open to Approved. Although you define approval processes through PeopleSoft Workflow, you do not have to implement worklist routings to approve purchase orders. You can use designated online pages for purchase order approvals if you do not use the worklist routing option in PeopleSoft Workflow.

When a purchase order is created for a buyer whose default purchase order status is Open on the Buyer Table page, the purchase order default status is set to Open. To approve the purchase order, an authorized buyer must set the purchase order status to Pending Approval or Approved. At this point, if neither amount nor

ChartField approvals are required, the purchase order status changes to Approved.

If at least one type of approval is required, the purchase order status starts at Pending Approval and remains in this status until all applicable approvals are complete. After receiving the required approvals, the purchase order status changes to Approved.

When a purchase order is created for a buyer whose default purchase order status is Pending

Approval/Approved, the purchase order default status is set to either Approved (if neither type of approval is needed) or Pending Approval (if one or both types of approval are needed).

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41

Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

PO Create Exceptions

Use the PO Create Exceptions (purchase order create exceptions) fields to define exceptions for groups of purchase orders created in batch. These exceptions are grouped based on the sourcing process where the purchase order originated. When you select a sourcing process for approval exception, the system overwrites the approval options that you define on this page. If you want one of the approval options to remain in effect, select the appropriate check box.

These settings can force only the exception of an approval that is required for a purchase order. It can't force an approval that isn't required. If a purchase order is modified online after a selected exempt process creates it, the purchase order is subject to the general approval rules that you select on this page.

PO Process (purchase

order process)

Select the sourcing process that you want to be exempt from the approval options. Values are Auto Select,Contract PO's (contract purchase orders), Online

Source,PAR Location Replenishment,Planning Load,Production Load, and

Request for Quotation.

Amt Appr Needed

(amount approval needed)

Select to continue amount approval for this process.

Select to continue ChartField approval for this process.

ChrtFld Appr Needed

(ChartField approval needed)

If you use requisitions to designate the authority to purchase, you may want to create purchase orders automatically in Approved status when the purchase orders are sourced from approved requisitions. In this case, insert exception rows for AutoSelect and Online Source and clear the Amt Appr Needed and ChrtFld

Appr Needed check boxes. Purchase orders that are created from these sources are now exempt from workflow approval requirements and are automatically created with a status of Approved.

When purchase orders are created from contracts, amounts are already approved. However, if the business unit rule says that ChartFields on the purchase orders must be approved, the purchase order must go through the same approval process as online purchase orders.

Suppose that you create a purchase order using the AutoSelect Requisitions process (PO_REQSORC). If you define amount and ChartField approval exceptions for this process, the purchase order is created with a status of Approved. If a buyer changes a price on the purchase order online and thereby changes the amount of the purchase order, the purchase order status changes to Pending Approval. At this point, the business unit approval rules apply to the modified purchase order. Once a purchase order is modified, these rules apply regardless of the purchase order source and exceptions that are defined.

See Also

Chapter 29, "Using Purchase Order Sourcing," page 807

Chapter 6, "Using Workflow," page 117

PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework

Enterprise PeopleTools PeopleBook: Workflow Technology

42 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Defining Requisition Change Options and Approval Requirements

Access the Req Approval Options page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing,

Purchasing Definition, Req Change Options).

Requisition Change Options page

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

Change Order Option

(requisition change order option)

Select a specific category of requisitions that are eligible for change order tracking.

Values are:

A: (Approved Requisitions)

N: (No Change Orders)

S: (Sourced)

V:(Valid Budget Checked)

Note. The Valid Budget Checked change order option enables you to use

requisition change order templates to track changes based on approval, budget, or sourcing statuses. PeopleSoft Purchasing provides three options to determine when a requisition change order should be tracked depending on an organization's business controls. For example, changes to the requisition affect only the buying organization after the requisition has been sourced to a purchase order; however, departmental controls may require that you track changes after requisition approval has occurred.

Change Template

(requisition change order template)

Select a change template for requisitions within this business unit. A requisition change template identifies which field changes on a requisition cause the system to generate the following actions:

Create a change request if the fields are changed after a requisition has been sourced to a purchase order.

Record change tracking.

Require re-approval of the requisition or requisition line using the approval workflow framework.

To create a change template for requisitions, use the change template type of

Requisition.

See PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook

, "Defining Procurement Options," Creating Change Templates.

Approval Framework Control

Use the Approval Framework Control group box to enable the approval framework for approving requisitions at the header level, line level, or both. For the approval of requisitions in PeopleSoft Purchasing, you can choose between two workflow methods; the approval framework or the PeopleTools Workflow Technology.

Note. The system displays a message that indicates whether the approval framework is in use by Purchasing.

44 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Workflow Approval

Required (workflow

approval required)

Select to indicate that you want to use the approval workflow framework for requisition approvals. When you select this check box, you initiate the approval workflow framework and end the use of PeopleTools Virtual Approver (part of

PeopleTools workflow technology). Any current pending requisition transactions will finish the approval process using the Virtual Approver. From this action forward, the system uses the approval workflow framework for new requisitions.

Warning!

After initiating the approval workflow framework, you cannot activate Virtual Approver again.

Resubmit Workflow for

Quantity or Price

Decrease

Select to indicate that requisitions require re-approval after the quantity or price has been decreased.

Virtual Approver Control

Use the Virtual Approver Control group box to determine your settings for approving requisitions using the

Virtual Approver feature. The Virtual Approver feature is part of the PeopleTools Workflow Technology. For the approval of requisitions in PeopleSoft Purchasing, you can choose between two workflow methods; the

Approval Framework or the PeopleTools Workflow Technology. The Virtual Approver enables you to approve the requisition at the header level. You can route a requisition for approval based on the amount, the

ChartFields used, or both. To implement workflow approvals, define the roles, rules, and routings using the

PeopleSoft Application Designer, PeopleCode, and Workflow Administrator. Your system is delivered with basic approval rules already established.

Req Approval Business

Process (requisition

approval business process)

Select the business process for which you are establishing approval rules. This business process corresponds to the approval rule set. Define approval rule sets in

PeopleSoft Workflow Administrator.

Req Amount Approval

Rule (requisition amount

approval rule)

Select the approval rule set to be used to apply requisition amount approvals.

Req ChartField

Approval Rule

(requisition ChartField approval rule)

Select the approval rule set to be used to apply requisition ChartField approvals.

Selecting the Req Amount Approval Needed or Req ChartField Approval Needed check box forces requisition transactions to flow through the approval process before continuing through the purchasing life cycle.

If you do not select one of these check boxes, the purchasing authorizations that are defined on the User

Preferences - Procurement: Requisition Authorizations page determine approval statuses. In this case, an authorized user can change a transaction approval status from Open to Approved. Although you define approval processes through PeopleSoft Workflow, you do not have to implement worklist routings to approve requisitions. You can use designated online pages for requisition approvals if you do not use the worklist routing option in PeopleSoft Workflow.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

45

Defining PeopleSoft Purchasing Business Units and Processing Options

See Also

Chapter 6, "Using Workflow," page 117

Chapter 21, "Approving Requisitions," page 535

PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework

Enterprise PeopleTools PeopleBook: Workflow Technology

Chapter 3

Establishing Purchasing Processing Options

To define purchasing processing options, use the Purchasing Processing Options component

(BUS_UNIT_OPT_PM).

This section discusses how to:

Define purchasing processing options.

Define transaction dispatch methods.

Define freight options.

Define purchase order acknowledgement (POA) settings.

Define VAT service treatment setup.

Define reason codes for change requests and change orders.

Pages Used to Establish Purchasing Processing Options

Page Name

Purchasing Options

Dispatch Method

Freight Option

Definition Name

BUS_UNIT_OPT_PM

BU_OPT_PM_DISP

BU_OPT_PM_FREIGHT

Navigation

Set Up Financials/Supply

Chain, Business Unit

Related, Purchasing,

Purchasing Options

Usage

Define purchasing options and transaction processing criteria for each PeopleSoft

Purchasing business unit.

You can override these options during transaction processing.

Click the Dispatch Method link on the Purchasing

Options page.

Define transaction dispatch methods for purchase orders, RFQs, RTVs, contracts, and replenishment requests.

Click the Freight Option link on the Purchasing

Options page.

Define freight options, rule codes, and charge methods.

46 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3

Page Name

POA Settings (purchase order acknowledgements settings)

Definition Name

POA_DEF_BU_SP

VAT Defaults Setup (valueadded tax defaults setup)

VAT_DEFAULTS_DTL

Service VAT Treatment

Defaults Setup (service value-added tax treatment defaults setup)

VAT_DEFAULTS_DTL

Procurement Change

Reason Codes

BUS_OPT_PM_REASON

Defining PeopleSoft Purchasing Business Units and Processing Options

Navigation Usage

Click the POA Settings link on the Purchasing Options page.

Define POA requirements and tolerance settings.

Click the VAT Default link on the Purchasing Options page.

Define VAT default options for all transactions in a business unit.

See Chapter 3, "Defining

PeopleSoft Purchasing

Business Units and

Processing Options,"

Setting Up VAT Defaults, page 26.

Click the VAT Service

Treatment Setup link on the

Purchasing Options page.

Define service-related VAT default options for service transactions in a business unit.

Click the Change Reason

Codes link on the

Purchasing Options page.

Define settings for reason codes used when creating change requests and change orders in PeopleSoft

Purchasing, eProcurement, and Services Procurement.

These settings enable you to define default reason codes and determine if reason codes or comments should be required when creating or approving these transactions.

Defining Purchasing Processing Options

Access the Purchasing Options page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing,

Purchasing Options).

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

48

Purchasing Options page

You can establish multiple processing options for a given setID. To create distinct groups of processing options, give each new group a distinct processing option ID. Processing-options groups with different IDs can have the same effective date, which enables you to choose among these groups for varying situations.

You can also effective-date processing options within a processing option ID. Within each processing-options group, you can add a new set of effective-dated purchasing options.

Effective-dating processing options enables you to activate or inactivate processing options within a processing option ID. This functionality is useful for making date-sensitive changes to a group of processing options (payment terms, for example) while keeping the other options identical.

Accounting Template

Select the accounting template for this setID, which is used to determine

ChartField values that offset one-sided transactions in PeopleSoft Purchasing.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Accounting Date

Indicator

Enter C (current) to use the current system date as the accounting date. Enter S

(specific) to use the specific accounting date that you provide here. This value is useful if you do not want multiple journal entries created from a subsystem. Enter

S and enter an accounting date for all transactions. When the Journal Generator runs, it finds one date for the entire period and creates one journal entry.

Alternatively, the system would create separate entries for each accounting date that the Journal Generator found.

Note. If you select S, you must return to this definition each month and update

the accounting date for the next period.

Edit Combinations

Select for any PeopleSoft Purchasing business units that require ChartField combination edits.

Chartfield Edit Option

Select the action that you want the system to take when it encounters errors if you choose to verify ChartFields for this setID:

Default: Uses the default value from the Journal Options General Ledger

Definition page.

None: Deselects the ChartField edit option. No action is taken when errors occur.

Recycle: Enables you to save the transaction, but you can't post until you correct the error.

Reject: Rejects the transaction and does not enable you to save until you correct the error.

Use Suspen (use suspense): Posts the transaction to a suspense account. You should coordinate with the PeopleSoft General Ledger implementation team to determine whether you should select this option. If you do select this option, the

PeopleSoft General Ledger team must create journal entries to move the amounts out of the suspense account and into the appropriate distribution accounts.

Warning: Issues a warning and enables you to save.

Automatic UOM Round

Option (automatic unit of

measure round option)

Select the method by which you want to be notified of automatic rounding of item quantities. (When you are converting between units of measure, item quantities on purchasing documents are automatically rounded according to the rules that are set up on the Units of Measure page.) Values are:

Error: Stops the conversion if automatic rounding changes the quantity.

No Warning: Automatic rounding occurs without notification that conversion will change the UOM value.

Warning: Automatic rounding occurs with a notification of any unit-of-measure value change.

Payment Terms ID

Select a payment term ID for this setID. By default, this value appears on the purchase order unless you override it at the vendor level. Define payment terms

IDs on the Single Pay Terms and Multiple Pay Terms pages.

Payment Terms Basis

Date Type

Select the basis date type for the selected payment terms ID. The system calculates the payment due date from this date. Values are: Accounting Date,

Constructive Doc Receipt Date, Invoice Date, Receipt Date, Ship Date, and User

Specified Date.

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

Ship Via Code

Freight Terms Code

Physical Nature

Where Performed

Select the ship via code for the setID. Define values on the Ship Via Codes page.

Select the freight terms code for the setID. Define values on the Freight Terms page.

Select to indicate whether the object is a physical good or service.

Select to indicate the location where the service is most often performed. Values are:

Buyer's: Select if the service was physically performed at the buyer location.

Ship From: Select if the service was physically performed at the bill from location.

Ship To: Select if the service was physically performed at the bill to location.

Supplier's: Select if the service was physically performed at the supplier location.

Note. The Physical Nature and Where Performed fields are used as part of the

purchasing defaulting hierarchy. The Where Performed field is available when the value in the Physical Nature field is Service. These fields are supplied by default onto requisition, purchase order, contract, and RFQ lines. These fields also affect the VAT treatment determination.

Open Period

Select how the system is to handle open period in transactions if you are using commitment control. Values include:

Error: The system issues an error and does not permit you to complete the transaction because the budget date isn't within the valid open period date range.

This is the default value if commitment control is enabled.

None: The system does not check for open period. This is the default value if commitment control is not selected.

Warning: The system issues a warning but does not prevent you from completing the transaction even though the budget date isn't within the valid open period date range.

Default Amount Only

PO to "Do Not Receive"

(default amount only purchase order to "do not receive

This check box appears deselected by default. When you create an amount-only purchase order online or through the sourcing process, if this check box is selected, the purchase order lines Receiving Required field will appear as Do Not

Receive.

If this check box is deselected, the system uses the other defaulting hierarchy to determine the Receiving Required field value for the purchase order line. The system checks first at the item and then the item category to determine the receiving requirement.

50 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Inventory Sourcing Options

Check Inventory

Available Qty (check

inventory available quantity)

Select to have the system check available inventory when creating inventory demand. If this check box is selected, the system creates inventory demand for the first eligible warehouse in priority order that has sufficient quantity to meet the demand. If this check box is deselected, inventory demand is created for the first eligible warehouse in priority order (unless it is the requesting warehouse), regardless of whether that warehouse has sufficient quantity.

Note. The distribution network determines the priority order for eligible

warehouses. If no distribution network is designated for a ship-to location, the

Build Inventory Demand process (PO_REQINVS) resets the Inventory Source option to N (no) for sourcing by the PO Calculations process (PO_POCALC).

Partial Qtys Can Ship

(partial quantities can ship)

Select to have the Build Inventory Demand process enable an order to be partially sourced from one or more PeopleSoft Inventory business units, with any remaining quantity being sourced to a purchase order.

If you do not select this check box and a quantity cannot be fully sourced from one PeopleSoft Inventory business unit, the process sets the inventory source setting on the staging table to N (no), and the entire quantity is sourced to a purchase order.

Item Not Stocked at IN

Unit(item not stocked at

inventory business unit)

Select to have the Build Inventory Demand process source requests differently when no PeopleSoft Inventory business unit is found to stock this item. Values include:

Error out: The Build Inventory Demand process errors out when no PeopleSoft

Inventory business unit is found to stock the requested item. If you select this value, the process sets the stage statuses to Error in the purchase order staging tables.

Source to PO (source to purchase order): The Build Inventory Demand process sources the request to a purchase order when no PeopleSoft Inventory business unit is found to stock the requested item. If you select this value, the process sets the inventory source status for the request to N (no) so that the PO Calculation process can source it to a purchase order.

Note. This and the Check Inventory Available Qty and Partial Qtys Can Ship

check boxes work together to help the Build Inventory Demand process determine the method by which requested demand is sourced, as well as which distribution network warehouses are eligible for sourcing.

Dispatch Method

Freight Option

Click to access the Dispatch Method page. Use the Dispatch Method page to define the dispatch methods for purchase orders, request for quotes, return to vendors, and contracts.

Click to access the Freight Option page. Use the Freight Option page to define freight options for the business units.

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

VAT Default(value-

added tax default)

Click this link to access the VAT Defaults Setup page.

The VAT Defaults Setup page is a common page that you can use to set up VAT defaulting for all PeopleSoft applications that process VAT transactions. Using this page, you can define PeopleSoft Purchasing defaults, as applicable.

VAT Service Treatment

Setup(value-added tax

service treatment setup)

Click to access the Service VAT Treatment Defaults Setup page.

The Service VAT Treatment Defaults Setup page is a common page that you can use to set up VAT defaulting for all PeopleSoft applications that process VAT transactions. On this page, you can define service-related defaults for PeopleSoft

Purchasing, as applicable.

POA Setting(purchase

order acknowledgement setting)

Change Reason Codes

Click to access the POA Setting page. Use this page to define whether purchase order acknowledgements will be required from suppliers.

Click to access the Procurement Change Reason Codes page where you can define settings for reason codes used when creating change requests and change orders in PeopleSoft Purchasing, eProcurement, and Services Procurement.

These setting enable you to define default reason codes and determine if reason codes or comments should be required when creating or approving these transactions.

See Also

Chapter 29, "Using Purchase Order Sourcing," Building Inventory Demand Transactions, page 840

Chapter 8, "Using Commitment Control," Open Period, page 183

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining Financials and Supply Chain

Management Common Definitions," Defining Additional Common Information

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Editing ChartField Combinations"

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Defining Single Payment Terms

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Defining Multipayment Terms

PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook, "Working with VAT"

Defining Transaction Dispatch Methods

Access the Dispatch Method page (click the Dispatch Method link on the Purchasing Options page).

Note. Vendors can define their own dispatch method settings on the Procurement Options page.

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Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Purchase Order,

Request For Quote,and

Return to Vendor

Select the dispatch method for transactions that this business creates. Values are

EDX (electronic data exchange), Email, Fax, Phone, and Print.

Contract

Select the dispatch method for transactions that this business creates. Values are

Email, Fax, Phone, and Print.

ProCard Dispatch

Option (procurement card

dispatch option)

Select this option if you are using the procurement card functionality on purchase orders. The option that you select will affect the printed text that appears on the

PO/Dispatch Print report. Options are:

Charge to Card on File: Select to have "Charge to credit card" print in the header portion of the PO Dispatch/Print SQR report (POPO005).

Contact Buyer: Select to have the buyer's name and phone number print in the header portion of the PO Dispatch/Print report, for example, "*Please contact John Smith 925-694-3863 for payment information."

Contact Cardholder: Select to have the card holder's name and phone number print in the header portion of the PO Dispatch/Print report, for example,

"*Please contact John Smith 925-694-3863 for payment information."

Include Masked Card Info (include masked card information): Select to have the masked card number, card type, and expiration date appear in the header portion of the PO Dispatch/Print report.

No Reference: Select to have no procurement card information print on the

PO Dispatch/Print report.

Transmit Change

Orders

Select to enable the PO Dispatch/Print process to transmit change orders to vendors for this business unit. If you do not select this check box, the system may not generate the output file at all. Either way, after the PO Dispatch/Print process runs successfully, the status of the changed purchase order is set to D

(dispatched).

You can override this value for individual vendor locations on the Procurement

Options page.

Note. This check box applies only to change orders. Initial dispatches of

purchase orders are unaffected by this value.

See Also

Chapter 31, "Dispatching and Printing Purchase Orders," page 935

Chapter 26, "Managing Requests for Quotes," Running the RFQ Dispatch/Print Process, page 626

Chapter 40, "Managing Vendor Returns," Running the RTV Dispatch/Print Process, page 1181

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Using Voucher and Order

Contracts," Running the Purchase Order Contracts Process

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53

Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

Defining Freight Options

Access the Freight Option page (click the Freight Option link on the Purchasing Options page).

Arbitration Plan ID

Select the freight and transportation arbitration plan for this business unit.

Freight Charge Method Select the freight charge method for this business unit. Although the method

applies to the entire purchase order, it is calculated on a line-by-line basis.

See Also

PeopleSoft Enterprise Order Management 9.1 PeopleBook, "Setting Up Transportation Lead Times and

Internal Freight Charges"

Defining POA Settings

Access the POA Settings page (click the POA Settings link on the Purchasing Options page).

POA Settings

POA Required

Select this check box if a POA is required by a supplier after a purchase order is dispatched. When you select this check box the Alert worklist if no POA received fields become available.

Alert worklist if no POA

received(alert worklist if

no purchase order acknowledgement received)

Enter the number of days after purchase order dispatch or before purchase order delivery to send a notification to the buyer's worklist if no POA is received by the supplier for a purchase order in those time frames.

Note. Enter 999 in these fields if you do not want to generate a worklist entry for

the buyer.

POA required with

change order(purchase

order acknowledgement required with change order)

Select this check box if a POA is required when a change order is created.

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Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

POA Tolerance Settings

Auto-Approve POA if changes against PO do

not exceed (auto-approve

purchase order acknowledgement if changes against the purchase order do not exceed)

Enter the tolerance settings for the system to be able to automatically approve a

POA for the buyer.

days before Schedule

Due Date and days after

Schedule Due Date

Enter the number of days early or late to enable auto-approving a POA for the purchase order schedule. If the supplier changes a date that falls outside the schedule-days-early or schedule-days-late tolerances, then the buyer is required to review the change.

percent under Schedule

Quantity and percent

over Schedule Quantity

Enter the percentage under or over the purchase order schedule quantity to enable autoapproving a POA for a purchase order. If the supplier changes the quantity for any schedule above or below this percentage then the buyer will be required to review the change.

percent below PO Unit

Price (percent below

purchase order unit price)

and percent above PO

Unit Price(percent below

purchase order unit price)

Enter the percentage below or above the purchase order unit price to enable autoapproving a POA for a purchase order.

Note. Enter 999 in these tolerance setting fields if you do not want the system to be able to automatically

approve a POA within the tolerance settings.

POA Settings Hierarchy

You can define POA settings at the purchasing business unit level and at the vendor and location level. You define the purchasing business unit POA settings using the POA Settings page in the Processing Options component. You define the vendor and location POA settings using the Procurement Options page in the

Vendor component. You can override the purchasing business unit POA settings by defining vendor and location POA settings.

During the processing of a POA, the system first retrieves the POA settings at the vendor and location level that are associated with the purchase order. If the POA settings are not defined at that level, then the system retrieves the POA settings at the purchasing business unit level.

See PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Maintaining Vendor

Information," Specifying High-Level Procurement Processing Options.

Defining VAT Service Treatment Setup

Access the Service VAT Treatment Defaults Setup page (click the VAT Service Treatment Setup link on the

Purchasing Options page).

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

You can insert rows for the supplier's location country or state. You can also delete any existing rows.

Return to Purchasing

Options

Copy Values to New

Rows

Copy Defaults From

Click to return to the Purchasing Options component.

If you are inserting a row for a VAT driver key, select this check box to copy all the VAT defaults from the previous row to the new row. Otherwise, all VAT default fields for the new row will be blank.

Click to access the Copy Service VAT Treatment Defaults From page, which you can use to copy the VAT defaults from another key combination for the same

VAT driver.

Seller Location Country Select the supplier's location country.

Seller Location State

As applicable, enter the supplier's location state.

VAT Service Type

(value-added service type)

Set the type of service for the applicable VAT drivers. Values are:

Freight Transport

Other

VAT Place of Supply

(value-added tax place of supply)

For the applicable VAT drivers, select the usual place of supply (the place where

VAT liability occurs). Values are:

Buyer's Countries

Supplier's Countries

Where Physically Performed

See Also

PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook, "Working with VAT"

Defining Reason Codes for Change Requests and Change Orders

Access the Procurement Change Reason Codes page (click the Change Reason Codes link on the Purchasing

Options page).

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Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

Procurement Change Reason Codes page

Reason Type

Select the reason type for your default reason code. Your selection is limited to the following reason types:

Procurement Change: This reason type enables you to select the default reason code for users entering a change request or change order.

Deny PO Change Request: This reason type enables you to select the default reason code for buyers rejecting a change order during the approval process.

Reason Code Required

Select to require that a user enter a reason code when creating a change request, change order, or rejecting a change. Reason codes help identify why a user made a change or why a buyer rejected the change.

Comments Required

Default Reason Code

Select to require that a user enter a comment when creating a change request, change order, or rejecting a change. Comments enable the user to give a detailed explanation of their action.

Enter the reason code that should default to the transaction. The available reason codes are limited by the reason type on this row. Only one default reason code can be entered per reason type.

Preparing PeopleSoft Purchasing VAT Environments

To prepare the PeopleSoft Purchasing VAT environment:

1. Link the PeopleSoft Purchasing business unit to a VAT entity using the PeopleSoft General Ledger business unit.

This enables the PeopleSoft Purchasing business unit to record VAT information on purchase orders.

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Defining PeopleSoft Purchasing Business Units and Processing Options Chapter 3

2. Define VAT defaults and other VAT-related information for all VAT drivers in the PeopleSoft Purchasing defaulting hierarchy, as required.

To link a PeopleSoft Purchasing business unit to a VAT entity:

1. Access the Purchasing Definition - Business Unit Definition page.

2. Select the PS/GL (PeopleSoft General Ledger) check box.

3. Select the PeopleSoft General Ledger business unit in the GL Unit (general ledger unit) field.

The connection between PeopleSoft Purchasing business units and VAT entities is indirect. You must link the PeopleSoft Purchasing business unit to a PeopleSoft General Ledger business unit that is already linked to a VAT entity. Define links between PeopleSoft General Ledger business units and VAT entities on the VAT Entity - Identification page.

After linking PeopleSoft Purchasing business units to PeopleSoft General Ledger units, set the VAT processing options for those business units. VAT processing options are defined by setID, and the options are applied to all business units within the setID.

To define VAT defaults, VAT service treatment defaults, and other VAT-related information for the

PeopleSoft Purchasing options VAT driver:

1. Access the Purchasing Options page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing,

Purchasing Options).

2. Specify a value for physical nature.

3. Click the VAT Defaults link to access the VAT Defaults Setup page for the purchase order options VAT driver.

See Chapter 19, "Creating Requisitions Online," page 433.

4. Click the VAT Service Treatment Setup link to access the Service VAT Treatment Default setup page for the purchase order options VAT driver.

To define VAT defaults and other VAT-related information for the PeopleSoft Purchasing (business unit) definition VAT driver:

1. Access the Purchasing Definition - Business Unit Options page.

2. Select the Calculate VAT on Req (calculate value-added tax on requisitions) check box if you want to process and calculate VAT on requisitions and pass the requisition VAT information to other procurement transactions further along the supply chain.

3. Access the Purchasing Definition - Business Unit Definition page.

4. Click the VAT Defaults link to access the VAT Defaults Setup page for the PeopleSoft Purchasing business unit VAT driver.

To define VAT defaults, service VAT treatment defaults, and other VAT-related information for the vendor and vendor location VAT drivers:

1. Access the Vendor Identifying Information page.

Select: Vendors, Vendor Information, Add Update, Identifying Information.

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Chapter 3 Defining PeopleSoft Purchasing Business Units and Processing Options

2. Select the VAT Registration check box and access the VAT Registration Details page.

Create a row, entering the VAT registration number, if available, for all VAT countries in which this vendor conducts business and all countries for which the vendor reports VAT.

3. Click the VAT Defaults link to access the VAT Defaults Setup page, where you can define VAT defaults, such as VAT codes, transaction types, declaration points, rounding rule, and VAT use type for vendors.

4. Click the VAT Service Treatment Setup link to access the Service VAT Treatment Defaults Setup page, where you can define service-related VAT defaults for vendors.

5. Access the Location page.

For each location, expand the VAT section to define the usual physical nature of items purchased from this location (the location where services provided by this vendor location are usually performed) and to specify whether this vendor has been selected for suspension of VAT on purchases.

6. For each location, click the VAT Defaults link to access the VAT Defaults Setup page, where you can define VAT defaults (such as VAT codes, transaction types, declaration points, rounding rule, and VAT use type) for vendor locations.

7. For each location, click the VAT Service Treatment Setup link to access the Service VAT Treatment

Defaults Setup page, where you can define service-related VAT defaults for vendor locations.

To define VAT defaults at the PeopleSoft Purchasing item level:

1. Access the Purchasing Attributes page.

Select: Items, Define Items and Attributes, Purchasing Attributes.

2. Click the VAT Default link to access the VAT Defaults Setup page.

3. Click the VAT Service Treatment Setup link to access the Service VAT Treatment Defaults setup page.

To define a default VAT use type for the VAT driver for item business units in PeopleSoft Purchasing:

1. Access the Purchasing Business Unit Attributes page.

Select: Items, Define Items and Attributes, Purchasing Attributes.

2. Click the VAT Default link to access the VAT Defaults Setup page.

You can also define VAT defaults and service VAT treatment defaults for all VAT drivers in the PeopleSoft

Purchasing hierarchy by navigating directly to the VAT Defaults and Service VAT Treatment Defaults components.

See Also

Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Establishing

PeopleSoft Purchasing Business Units, page 15

Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Defining VAT Service

Treatment Setup, page 55

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Establishing Buyers and Defaults

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

59

Chapter 4

Defining Purchasing Item Information

This chapter provides an overview of purchasing item information and discusses how to:

Define purchasing item categories.

Define purchasing item attributes.

Update item vendor unit-of-measure conversion rates.

Capture item miscellaneous charges.

Set up item vendor price adjustment rules.

Update standard prices and business unit standard prices.

Select vendors based on item shipping location.

Create purchasing kits.

Understanding Purchasing Item Information

Defining values on the purchasing item information pages provides item-related processing information and default values that minimize errors and maximize productivity when you create purchasing transactions.

This section provides a list of common elements and discusses how to:

Set up item catalogs.

Work with market codes.

Common Elements Used in This Chapter

Days Late, Early Ship

Rjct Days (days late,

early shipment rejection days)

Enter the acceptable number of days before or after a shipment date during which you will still receive the goods.

Ext Price Tolerance /%

Ext Price Tolerance

(extended price tolerance/percentage extended price tolerance)

Enter the matching tolerance amount and percentage for the extended price

(amount multiplied by quantity) of the item. The extended price tolerance is the tolerance for the entire order, not just an individual item.

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Defining Purchasing Item Information Chapter 4

Inspect ID (inspection

ID)

Inspection Required

Displays the inspection IDs, which are established on the Inspection Routing page.

Inspection UOM

(inspection unit of measure)

Select to require inspection and to make the other inspection fields available for entry.

Select from these values:

Standard: Select to perform inspections in the standard unit of measure (UOM) setup on the Item Definition - General: Common link page.

Vendor: Select to perform inspections in the UOM used on the purchase order to the vendor.

Lead Time Factor %,

Ship to Priority Factor

%, Price Factor %,

Vendor Priority Factor

% (lead time factor

percent, ship to priority factor percent, price factor percent, vendor priority factor percent)

If you select the Flexible sourcing method, enter the percentage weight that you want to give to lead time, price, ship to, and vendor priority. The higher the percentage that you give to one of the criteria, the more weight that criterion has.

For example, if you want to select the vendor based only on lead time, you can give lead time a percentage weight of 100 percent and the vendor with the best lead time (regardless of price, ship to, or vendor priority) is selected.

Partial Qty (partial

quantity)

Indicate the action that you want to take if you receive less than the quantity specified on the purchase order schedule. Select from:

Open: Select to receive the partial quantity, leave the receipt line status as Open, and enable the receipt to be saved.

Open/Error: Reject the partial quantity, leave the receipt line status as Open, and generate an error message.

Open/Warn (open, but with a warning): Receive the partial quantity, leave the receipt line in Open status, and generate a warning message.

Recvd (received): Receive the partial quantity and change the receipt line status to Recvd.

Recvd/Warn (received with a warning): Receive the partial quantity and change the receipt line status to Recvd, but also generate a warning about the partial quantity.

Receiving Required

Select the receiving requirement for the item. Values are:

Do Not: Do not receive; accounts payable matching and receipt accrual are not applicable.

Optional: Receiving is optional; accounts payable will not match receipt lines and the system will not accrue the receipt.

Required: Receiving is required; accounts payable will match receipt lines and the system will accrue the receipt.

Reject Qty Over

Tolerance (reject quantity

over the tolerance limit)

Select to reject a quantity that surpasses the tolerance limits that you set.

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Chapter 4 Defining Purchasing Item Information

Sourcing Method

Select from Basic,Cumulative Split, Flexible, and Sched Split (split schedule).

This value appears by default from the category assigned to the item.

Tolerance Over,

Tolerance Under

Select the amount or percentage over or under the tolerance selected that still enables a voucher match.

Unit Price Tolerance/%

Unit Price Tolerance

(unit price tolerance/percent unit price tolerance)

Displays the matching tolerance amount and percentage for the price of an individual item.

Setting Up Item Catalogs

With PeopleSoft Purchasing, you can define any number of item catalogs. These item catalogs can be tailored for individual, department, or corporate-wide use and can greatly reduce the repetitive tasks associated with service and material purchases, such as rent, supplies, and standing inventory.

With PeopleSoft catalog functionality, you can:

Assign default item catalogs tailored specifically to individual requesters.

Transfer item catalog information in electronic format into PeopleSoft catalogs.

PeopleSoft Purchasing enables you to load and maintain items from various applications, including a process that loads and updates item information from a third party or supplier to PeopleSoft Purchasing and an Item Loader process that synchronizes item information between systems.

These are the main steps involved in creating an item catalog:

1. Create the category that will serve as the first node in the catalog tree.

2. Create a catalog tree.

3. Assign catalogs to the requesters.

4. Associate an inventory item with a default category.

To create the category that will serve as the first node in the catalog tree:

1. Access the Item Categories - Category Definition page in Add mode.

In the access requirements for the page, enter the setID and the category code that you want to use as the first node for the new catalog tree.

2. On the Item Categories - Category Definition page, enter required information, including account, description, short description, and currency code.

3. Save the category.

You may see warning messages about tolerances that have been left as zero (0.00000). For our current task, this is acceptable. Click the OK button to acknowledge the warning.

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Defining Purchasing Item Information Chapter 4

4. When the system asks whether you want to update item catalogs with the category changes, click the No button because you have not yet created the target catalog tree.

In the future, when the catalog tree has been established, click the Yes button, and select the catalog to which you want to assign a new category.

To create a catalog tree:

1. Access the Tree Manager component.

2. Choose to create a new tree definition and enter a tree name.

3. On the Tree Definition and Properties page, enter the basic information: tree name, structure ID, effective date, description, category, use of levels, audit options, and performance options.

Click the OK button to accept the settings and close the Tree Definition and Properties page. When you do, the Enter Root Node for Tree page appears.

4. On the Enter Root Node for Tree page, create a tree level for the new tree.

If no existing level is listed, click the Add Level button to access the Tree Levels page, where you can define the level to be used by the entire tree you are creating. If an existing level exists, you can choose to select it.

5. Enter a level name on the Tree Levels page.

The level name that you define here can be any generic name, for example, LEVEL 1.

If the level does not already exist in the system, you are transferred to the Tree Level Setup page.

6. On the Tree Level Setup page, enter further information about the level.

This includes information such as effective date, status, description, and short description.

Click the Apply button to save the settings. Click the OK button to return to the Enter Root Node for Tree page.

7. On the Enter Root Node for Tree page, create the first node by defining a value in the Root Node field.

This should be the name of the first node.

Click the OK button to accept and create the first node. When you do, the Tree Manager page appears.

8. On the Tree Manager page, click the Insert Detail button to create the detail node.

The Detail Value Range page appears.

9. On the Detail Value Range page, select the Dynamic Flag check box and click the Add button.

The system returns you to the Tree Manager page.

10. Save the new tree definition.

You have now successfully created an item catalog tree.

11. Click the Yes button when prompted to update item catalogs with the category changes.

12. Assign the new category to the new catalog.

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Chapter 4 Defining Purchasing Item Information

13. Launch Tree Manager to verify that the nodes have been created correctly for the catalog.

To assign catalogs to the requesters:

1. Access the Requester Setup page, and enter the requester name in the access requirements.

2. Select the Use Only Assigned Catalogs check box.

3. In the Catalog Information scroll area, assign catalogs to the selected requester.

4. Select the Default check box for the catalog that a requester will use as a default catalog.

See Also

Chapter 4, "Defining Purchasing Item Information," Defining Purchasing Item Categories, page 67

Enterprise PeopleTools PeopleBook: PeopleSoft Tree Manager

PeopleSoft Enterprise Managing Items 9.1 PeopleBook, "Loading Items"

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Establishing Requesters and Defaults

Working with Market Codes

If you are an existing PeopleSoft Purchasing customer, the conventional category codes are considered to be user-defined and the market codes for these codes are set to User Def (user-defined) (01) in the Item

Categories component after you run the upgrade script. You can maintain the same coding scheme, as well as migrate to the new industry standard coding scheme, the Universal Standard Products and Services

Classifications (UNSPSC). PeopleSoft eProcurement provides you with the Import CUP File process

(PV_CP_LOAD) to load UNSPSC and their corresponding MarketSite items through a batch process.

Use the UNSPSC to classify products and services at 2-digit, 4-digit, 6-digit and 8-digit levels, depending on your specific needs. Each subsequent level of detail describes a subset of all codes and descriptions preceding it in the code's hierarchy.

For example, ballpoint pens at the 8-digit level are a subset of writing instruments at the 6-digit level, which is a subset of office supplies at the 4-digit level. These descriptions are varying degrees of office equipment, accessories, and supplies at the 2-digit level. You can add ninth and tenth digits to indicate the business relationship to the supplier, such as rental/lease, wholesale, retail, or original equipment manufacturer. Each

UNSPSC is unique and enables unambiguous translation of the commodity's description into any language.

This table explains the UNSPSC coding hierarchy. In this example, leased addressing machines are assigned

UNSPSC number 4410210510. They are classified as office equipment, accessories and supplies

one of 55 existing segments at the top level of the UNSPSC hierarchy.

UNSPSC Level

Segment 44

UNSPSC Description

Office equipment, accessories, and supplies.

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Defining Purchasing Item Information Chapter 4

Level

Family

Class

Commodity

Business function identifier

44 | 10

UNSPSC

44 | 10 | 21

44 | 10 | 21 | 05

44 | 10 | 21 | 05 | 10

UNSPSC Description

Office machines and their supplies and accessories.

Mail machines.

Addressing machines.

Addressing machines, leased.

When you add a new category code using the Item Categories component, the system checks to determine whether the code consists of only numbers and has an even number of digits. If so, the system then assigns

UN/SPSC (02) as the market code. If the category code does not meet these criteria, the system assigns User

Def. (01) as the market code. You cannot modify the market code after you add the category code.

If the market code for the new category is set to UN/SPSC, the system looks at the code and determines whether its ancestor codes must be created and creates them accordingly. The length of the ancestor codes that are automatically generated is based on the length of the category code that you just entered. For example, when you enter the category code 4410210510 and no ancestor codes exist, the system generates the following ancestor codes:

4400000000

4410000000

4410210000

4410210500

Upon saving the Item Categories component, the system asks whether you want the item catalogs updated. If the answer is no, the catalog tree is not updated. If the answer is yes, the Update Catalog Tree page appears. If you are updating an existing code, the page displays the existing catalog information.

The relationship between CATEGORY_CD (category code) and CATEGORY_ID (a system-assigned sequential number) is one-to-one in the PS_ITM_CAT_TBL table. The relationship between an item

(PS_MASTER_ITEM_TBL) and a default category (PS_ITM_CAT_TBL) is many-to-one.

Note. You may be able to associate an item with more than one category. However, only the PeopleSoft

eProcurement product supports the one item and multiple categories association feature.

For example, the following scenario is not supported in PeopleSoft Purchasing: In setID SHARE, item 10002 is mapped to category code CYCLING (CATEGORY_ID = 00009). This means that for catalog

ALL_PURCHASE_ITEMS, item 10002 belongs to the tree node CYCLING (due to dynamic range).

You might be able to create an item static range from 10001 to 10003 under another tree node, FISHING.

This range violates the relationship previously described because, in this case, item 10002 is mapped to two categories, CYCLING and FISHING. Avoiding this scenario is a good practice because it may create unpredictable results when you use the Order by Catalog function.

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Chapter 4 Defining Purchasing Item Information

See Also

Chapter 4, "Defining Purchasing Item Information," Defining Purchasing Item Categories, page 67

Chapter 4, "Defining Purchasing Item Information," Updating Catalog Trees, page 72

Chapter 19, "Creating Requisitions Online," Ordering Items by Catalog, page 462

Defining Purchasing Item Categories

To define purchasing item categories, use the Item Categories component (ITEM_CATEGORIES).

This section provides an overview of item categories and discusses how to:

Define item categories.

Update catalog trees.

Define item category control options.

Define vendor sourcing priorities for item categories.

Understanding Item Categories

If your installation includes PeopleSoft Purchasing, you must create categories for the items. You will be required to assign new items to a category on the Define Item - General: Common link. Category information helps reduce redundant data entry during both item setup and requisition and purchase order processing. The purchasing attributes of an item category are assigned as defaults to any item in that category.

Item categories can provide transaction information for requisitions, requests for quotes, contracts, and purchase orders. Item categories also serve as the organizational unit for item catalogs. In fact, item catalogs are a collection of item categories. Each item added to a category is automatically added to each catalog that contains that category.

For each category that you create, you can define purchasing attributes, such as general ledger account, primary buyer, lead time, price tolerances, and so forth. For example, you might create a category for outdoor equipment with a set of default purchasing attributes that apply to most of the outdoor equipment purchases.

During item definition, every item that you assign to the outdoor equipment category receives the attributes of that category.

Note. If you don't order by item ID, category attributes will be supplied by default to the item lines of

requisitions, contracts, and purchase orders on which you specify the category codes. If you do order by item

ID, the attributes are supplied by default from the Item tables rather than the Category tables.

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Defining Purchasing Item Information Chapter 4

Pages Used to Define Purchasing Item Categories

Page Name Definition Name

Item Categories - Category

Definition

CATEGORY_TBL

Update Catalog Tree

BU Specific Attributes

(business unit specific attributes)

View Catalog Hierarchy

CAT_PNLS_CATLG_SEC

ITM_CAT_BU_SEC

CAT_PARENTAGE_SEC

VAT Defaults Setup (valueadded tax defaults setup)

VAT_DEFAULTS_DTL

Service VAT Treatment

Defaults Setup (service value-added tax treatment defaults setup)

VAT_DEFAULTS_DTL

Navigation

Items, Define Controls,

Item Categories, Category

Definition

Usage

Define item categories.

Change item categories or add a new item category on the Item Categories -

Category Definition page and save.

Click the Yes button when asked if you want to update catalogs with the category changes.

Select the catalog tree to update with new category code information.

Click the BU Attributes

(business unit attributes) link on the Item Categories

- Category Definition page.

Assign a buyer to this category for each business unit. You may want to do this if you order by description and want a default buyer for this category by business unit.

This setup is optional. The system uses the values set for the buyer at the item category level for all business units that are not specified here.

Click the Hierarchy link on the Item Categories -

Category Definition page.

View information about where a category resides in the entire catalog tree hierarchy.

Click the VAT Default link on the Item Categories -

Category Definition page.

Define value-added tax

(VAT) defaults.

See PeopleSoft Enterprise

Global Options and Reports

9.1 PeopleBook, "Working with VAT," Setting Up and

Maintaining VAT Defaults.

Click the VAT Service

Treatment Setup link on the

Item Categories - Category

Definition page.

Define service VAT treatment defaults.

See PeopleSoft Enterprise

Global Options and Reports

9.1 PeopleBook, "Working with VAT," Setting Up and

Maintaining Service VAT

Treatment Defaults.

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Chapter 4 Defining Purchasing Item Information

Page Name Definition Name

Item Categories - Category

Definition 2

CATEGORY_TBL2

Vendor Sourcing Priorities

ITM_CAT_VND_PR_SEC

Navigation

Items, Define Controls,

Item Categories, Category

Definition 2

Usage

Define the matching and receiving controls, sourcing controls, and miscellaneous controls and options for the category.

Also use to set price tolerance defaults for items to trigger workflow exception notifications.

PeopleSoft Purchasing and

PeopleSoft Payables use matching controls to match receipts, purchase orders, and vouchers.

Receiving controls specify how receiving users process items assigned to this category.

These values become a part of the item default hierarchy and can be supplied by default to purchase order lines where this category is specified.

Click the Priorities link on the Item Categories -

Category Definition 2 page.

Set the vendor priority and split sourcing allocation percentage for vendors for this category

Defining Item Categories

Access the Item Categories - Category Definition page (Items, Define Controls, Item Categories, Category

Definition).

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Defining Purchasing Item Information Chapter 4

70

Category Definition page

Market Code

Effective Date

Status

Lead Time Days

Select the coding scheme that a category code is using. Values are UN/SPSC

(Universal Standard Products and Services Classification) (02) and User Def.

(user-defined) (01).

Select a date for which you want to make the purchasing item category effective for use.

Select a category status. Changing a category status from Active to Inactive means that you can no longer assign items to the category. This status change does not affect the existing and future PeopleSoft Purchasing transactions involving items in the inactivated category. For example, setting a category status to Inactive has no effect on orders that you have in progress that contain items tied to the newly inactivated category. You can also continue to add these items to the PeopleSoft Purchasing transactions using the usual methods, such as entering an item ID directly on the online page or using the Order By Catalog page or Item Search Criteria page.

Enter the number of lead-time days required for items in this category. This value is used in calculating the due dates for purchase order lines when the category you're defining is specified for a line on which no item ID is specified, the purchase order has no default due date, or no due date is specified on the line schedules.

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Chapter 4 Defining Purchasing Item Information

Account

Alt Acct(alternate

account)

Asset Profile ID

Usage Code

Physical Nature

Where Performed

Select a valid account number to identify the general ledger account to be associated with the items in this category. This account number is used on transactions when no item ID is specified at the line level of a PeopleSoft

Purchasing purchase order and no default account is specified for the transaction.

Select an alternate account number to identify the general ledger account to be associated with the items in this category. This field is available if you enable the

Alternate Account option for the organization and for the general ledger business unit.

Select an asset profile ID for the category. Asset profile IDs are transferred to

PeopleSoft Asset Management when PeopleSoft Purchasing receives an item that specifies both an asset profile and a PeopleSoft Asset Management business unit.

When you define a purchase order or requisition line using an asset category without specifying an item, the asset profile of that category becomes the default.

Asset profile IDs are set up on the Asset Profile page.

Enter an ultimate use code to be supplied by default on purchasing transactions whenever this category is referenced on an ad hoc (order by description) line.

In most cases, sales tax is computed as a use tax based on the tax code that is applicable to the ship to or usage destination. However, how merchandise is ultimately used may also result in a different tax rate within the same ship to or usage destination.

Indicate whether the object is a physical good or service. Values are Goods and

Services.

Select the location where the service is most often performed:

Buyer's: Select if the service is physically performed at the buyer location.

Ship From: Select if the service is physically performed at the ship from location.

Ship To: Select if the service is physically performed at the ship to location

Supplier's: Select if the service is physically performed at the supplier location.

Note. This option is available only when the physical nature is service.

See Also

Chapter 4, "Defining Purchasing Item Information," Working with Market Codes, page 65

Chapter 19, "Creating Requisitions Online," Ordering Items by Catalog, page 462

Chapter 19, "Creating Requisitions Online," Creating Requisition Schedules, page 484

Chapter 19, "Creating Requisitions Online," Searching for Item Categories, page 484

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining and Using ChartFields,"

Understanding PeopleSoft Enterprise ChartFields

PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook, "Processing Multiple Currencies"

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Defining Purchasing Item Information Chapter 4

Updating Catalog Trees

Access the Update Catalog Tree page (change item categories or add a new item category on the Item

Categories - Category Definition page and click Save).

Parent Category

When the market code for the category is UN/SPSC (02), the Parent Category field is unavailable for entry because the system generates and maintains

UNSPSC ancestor nodes automatically. You can select multiple catalog trees for updating.

When the market code is User Def. (01), you must select a Parent Category value. Then click the Catalog Refresh button to retrieve the catalog trees to which the parent category belongs. You can select only one catalog tree for updating.

Note. The category being modified is not available as a parent category when

you are updating the catalog tree.

Defining Item Category Control Options

Access the Item Categories - Category Definition 2 page (click the BU Attributes (business unit attributes) link on the Item Categories - Category Definition page).

Sourcing Controls

Accumulate Level

If you select Cumulative Split in the Sourcing Method field, this field becomes available for entry. Select Run to accumulate the percentage for the vendor based on each run of the PO Calculations process (PO_POCALC), or select Schedule to accumulate based on each schedule.

Cumulative Sourcing

In the Cumulative Sourcing group box, set the options for the cumulative sourcing method. The fields in this group box become available if you select Cumulative in the Sourcing Method field.

Year to Start

Month to Start

Number of Months

Designates the year in which you want to start maintaining vendor history. You cannot specify a year in the future. Cumulative sourcing must be based on history and cannot occur in the future.

Enter the number of the month in which you want to start maintaining vendor history. Changing the value in this field triggers recalculation of historical quantities and amounts. History is always maintained from the first day of the start month to the first day of the end month.

Enter the number of months for which you want to keep vendor history.

Changing the value in this field triggers recalculation of historical quantities and amounts.

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Chapter 4 Defining Purchasing Item Information

Start Date

End Date

Displays the start day, which is calculated based on the values that you define for the Year to Start, Month to Start, and Number of Months fields. History is always maintained from the first day of the start month to the first day of the end month.

Displays the date on which vendor history is to be refreshed. This date is calculated based on the values defined for the Year to Start and Month to Start fields, plus the value in the Number of Months field. So if Month to Start is 1 and

Number of Months is 3, the end date will be 04/01. History is refreshed by the first run of the Cumulative Sourcing Update process (PO_POHISTUD) as soon as the current date is greater than or equal to the end date.

Total Category Amount Displays the total merchandise amount for all vendors for this category for the

historical period, in the category currency.

Misc. Controls and Options

Close PO Under Percent

Tol (close purchase order

under percent tolerance)

Enter an acceptable percentage of the total quantity or amount that can be outstanding while still enabling the purchase order to be closed. If the quantity or amount not yet received is less than or equal to the value entered here, the Close

Purchase Orders process (PO_PORECON) will treat the purchase order as fully received.

RFQ Required (request

for quote required)

Select if the item must go through the RFQ cycle before it can be included on a requisition or purchase order.

See Also

Chapter 34, "Closing Purchase Orders," Running the Close Purchase Orders Process, page 1013

Chapter 29, "Using Purchase Order Sourcing," Running the PO Calculations Process, page 844

Chapter 29, "Using Purchase Order Sourcing," Updating Vendor History Dates and Amounts for Cumulative

Sourcing, page 885

Defining Vendor Sourcing Priorities for Item Categories

Access the Vendor Sourcing Priorities page (Items, Define Controls, Item Categories, Category Definition 2, click the Priorities link on the Item Categories - Category Definition 2 page).

Priority

Allocation Percentage

Enter a priority rank for the vendor. When the PO Calculations process selects a vendor for the item, it uses the priority ranking with the lowest number (1) as the first choice. When you add another vendor, the next priority ranking is automatically assigned.

If you selected Sched Split or Cumulative Split in the Sourcing Method field on the Item Categories - Category Definition 2 page, enter the allocation percentage for the selected vendor.

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Defining Purchasing Item Information Chapter 4

Merchandise Amt

(merchandise amount)

Displays the total merchandise amount for this vendor for this category for the historical period, along with the category currency.

See Also

Chapter 29, "Using Purchase Order Sourcing," Running the PO Calculations Process, page 844

Chapter 4, "Defining Purchasing Item Information," Defining Purchasing Item Categories, page 67

Defining Purchasing Item Attributes

To define purchasing item attributes, use the Purchasing Attributes component (PURCH_ITEM_ATTR). Use the PURCH_ITEM_ATTR_CI component interface to load data into the tables for this component.

If you have PeopleSoft Purchasing installed, you can use the Purchasing Attributes component to specify purchasing information for the items.

This section provides an overview of order multiple rounding rules and discusses how to:

Define purchasing item attributes.

Enter purchasing item specifications.

Define purchasing controls.

Define purchasing business unit attributes.

Define attributes and priorities for purchasing item vendor relationships.

Define purchasing item vendor UOM and pricing information.

Enter item vendor UOM conversion rate changes.

Update purchase orders with item vendor UOM conversion rate changes.

Understanding Order Multiple Rounding Rules

In several industries, such as consumer goods and wholesale and distribution, for various economic and packaging reasons suppliers ship only certain items in multiples of a specific quantity. They can define the smallest quantity they are willing to ship for the item. Then when you create purchase orders to these suppliers you want a system that can use this information and calculate the rounding of the suggested order quantities to reflect the supplier's specification to these suppliers.

PeopleSoft Purchasing enables you to specify whether to have the system check for order multiples when you are ordering an item from a particular vendor and location on a purchase order.

Note. Order multiples are available only on the online purchase order. Batch sourcing and requisitions do not

use the order multiples functionality.

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Chapter 4 Defining Purchasing Item Information

In addition, you can also specify the rounding rule that you want the system to use when its is calculating the correct order quantity multiple for this item on the purchase order. The two available rounding rules that you can choose are natural round and round up. The following examples illustrate the different types of rounding rules and their outcomes.

Rounding Rule Examples

Refer to the following table for quantity calculation examples using the different rounding rules:

Item

10005

10005

10005

10005

Vendor Location

SCM0000001 Main

SCM0000001 Main

SCM0000001 Main

SCM0000001 Main

EA / 5

IP / 10

CS / 2

PT / 1

EA / 5

IP / 10

CS / 2

PT / 1

EA / 5

IP / 10

CS / 2

PT / 1

Unit of

Measure/Orde r Multiple

Round Rule

EA / 5

IP / 10

CS / 2

PT / 1

Natural Round

Order

Quantity

14 EA

Natural Round 12 EA

Round Up

Round Up

14 EA

12 EA

Suggested

Order

Quantity

15 EA

10 EA

15 EA

15 EA

Pages Used to Define Purchasing Item Attributes

Page Name

Purchasing Attributes

Item Specifications

Definition Name

ITM_TBL_PUR

ITEM_SPEX_PUR

Navigation

Items, Define Items and

Attributes, Purchasing

Attributes

Usage

Enter basic purchasing information for an item.

Click the Item

Specifications link on the

Purchasing Attributes page.

Record standard details about the item. These specifications can be sent to the vendor using the purchase order.

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Defining Purchasing Item Information

Page Name

Packing Details

Definition Name

ITM_PKG_PUR_SEC,

ITM_VUOM_PKG_SEC

VAT Defaults Setup (valueadded tax defaults setup)

Service VAT Treatment

Defaults Setup (service value-added tax treatment defaults setup)

Purchasing Attributes -

Purchasing Controls

VAT_DEFAULTS_DTL

VAT_DEFAULTS_DTL

ITM_TBL_PUR2

Chapter 4

Navigation Usage

Click the Packing Details link on the Purchasing

Attributes page or the

Vendor's UOM and Pricing

Information page.

Enter packing volume and weight information for the item.

When accessed from the

Vendor's UOM and Pricing

Information page, the

Packing Details page also enables you to define item package dimensions, which can be useful if item package dimensions vary by vendor.

Click the VAT Default link on the Purchasing Attributes page or the Purchasing

Business Unit Attributes page.

Enter VAT defaults for this item into the VAT hierarchy tables with a VAT driver of item.

Click the VAT Service

Treatment Setup link on the

Purchasing Attributes page or the Purchasing Business

Unit Attributes page.

Enter service-related VAT defaults for this item into the VAT hierarchy tables with a VAT driver of item.

Items, Define Items and

Attributes, Purchasing

Attributes, Purchasing

Controls

Specify matching and receiving defaults for the item.

Define sourcing controls and miscellaneous controls and options for the item.

Set price tolerance defaults for purchased items. These tolerances are supplied by default from the item's category; you can override them during online item setup.

Use these tolerances in conjunction with the price change exception rule. Item

Load processes compare new item/vendor prices in the Item Loader staging table to the previous item/vendor price. If the new price exceeds tolerances, the system generates an exception.

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Chapter 4 Defining Purchasing Item Information

Page Name

Purchasing Business Unit

Attributes

Definition Name

ITM_BU_PUR

Purchasing Attributes - Item

Vendor

ITM_VENDOR

Vendor Lookup VENDOR_LOOKUP_SEC

Navigation

Click the BU Attributes

(business unit attributes) link on the Purchasing

Attributes - Purchasing

Controls page.

Items, Define Items and

Attributes, Purchasing

Attributes, Item Vendor

Click the Vendor Lookup link on the Purchasing

Attributes - Item Vendor page.

Usage

Define item attributes by business unit.

If you do not specify tolerance values for the business unit, the system uses tolerance values defined for the item's purchasing attributes.

When you access this page to specify business-unit specific attributes, tolerance values are supplied by default from the item's purchasing attributes. To define zero tolerances on this page, you must clear the tolerance fields manually.

If you access this page and enter a business unit but do not enter any values, and you click OK to exit the page, the system records default tolerance values from the purchasing attributes to create businessunit specific values. Click

Cancel instead to avoid this situation.

The fields on this page match those on the

Purchasing Attributes page and on the Purchasing

Definition - Business Unit

Options page.

This page is not available unless at least one of the

PeopleSoft Purchasing business units has the Allow

Business Item Attributes option selected on the

Purchasing Definition -

Business Unit Options page.

Establish and update prioritized item-supplier combinations.

Search for vendors.

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Defining Purchasing Item Information Chapter 4

Page Name

Vendor's UOM and Pricing

Information (vendor's unit of measure and pricing information)

ITM_VENDOR_UOM

Effective Dated UOM

(effective-dated unit of measure)

ITM_VNDR_UOMCHG

Update Purchase Order

PO_EDUOM_UPDPO_SEC

Maintain Purchase Order -

Purchase Order

Vendor's Manufacturer Info

(vendor's manufacturer information)

Vendor Item Return Fees

Item Vendor Contracts

Definition Name

PO_LINE

ITM_VENDOR_MFG

ITM_VND_RTV_FEE

ITM_VNDR_CNTRCT

Navigation Usage

Click the Item Vendor

UOM (item vendor unit of measure) link on the

Purchasing Attributes - Item

Vendor page.

Establish valid units of measure to use when ordering the item from the vendor and to establish the pricing information for each valid UOM.

Click the Effective Dated

UOM link on the Vendor's

UOM and Pricing

Information page.

Enter effective-dated conversion rate changes along with the packing detail information.

Click the Update PO link on the Vendor's UOM and

Pricing Information page or the Effective Dated UOM page.

Update existing purchase order schedules with the new effective-dated UOM conversion rate changes.

Click the PO ID link on the

Update Purchase Order page.

Maintain the purchase order and all of its details.

Click the Vendor Item MFG

(vendor item manufacturer) link on the Purchasing

Attributes - Item Vendor page.

Record the authorized manufacturers for an itemvendor combination.

Click the Return to Vendor

Fees link on the Purchasing

Attributes - Item Vendor page.

Add fees charged by the vendor for returning this item.

Click the Item Vendor

Contracts link on the

Purchasing Attributes - Item

Vendor page.

View all contracts for any specified item/vendor combination.

Defining Purchasing Item Attributes

Access the Purchasing Attributes page (Items, Define Items and Attributes, Purchasing Attributes).

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Chapter 4 Defining Purchasing Item Information

Purchasing Attributes page

PO Available Date,

(purchase order available date)Unavailable, and

Unavailable

Indicate the dates within which the item can be added to a purchasing transaction.

You can add an item between these two dates only.

Standard Price

Enter the standard price for the item purchased in its standard UOM. A standard price is required for each item and becomes the default price in transactions for which another price, such as a vendor price or a contract price, is not defined for the item. An item's standard UOM is defined on the Item Definition - General:

Common link.

Standard Unit of

Measure

Last PO Price (last

purchase order price)

Displays the standard UOM used for pricing. The pricing UOM may be different from the stocking UOM.

Displays the last price that was used on a purchase order for this item. When an item is initially set up, the standard price is also the last price value. This field is updated by the Receiver Interface Push process (PO_RECVPUSH) and is used by the return-to-vendor transaction to cost the return and enable items to be returned to a vendor other than the original vendor of the order.

Currency

Select the currency of the standard price.

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Defining Purchasing Item Information Chapter 4

Lead Time Days

Item Descr(item

description)

Asset Profile ID

Ultimate Use Code

Physical Nature

Where Performed

The value appears by default from the Item Categories - Category Definition page. You can override the default value for individual items.

Enter a long description of the item up to 30 characters long. Enter a short description of the item up to 10 characters long. These descriptions can be used with PeopleSoft reporting and query tools instead of the standard 254-character description to distinguish the purchasing descriptions from the internally used item description established in the Item Definition component. These purchasing descriptions then also appear in the Description text box at the bottom of the page, where you can expand the descriptions to 254 characters. Whereas the long and short descriptions defined here are for internal use only, the description in the lower text box is used in all purchasing transactions and becomes available by selecting the description button or menu item on the PeopleSoft Purchasing pages.

Displays the default from the Item Categories - Category Definition page. An asset profile ID on a purchase order, in conjunction with a PeopleSoft Asset

Management business unit, indicates that PeopleSoft Asset Management is to be notified of the purchase of this item when it is received.

Select an ultimate use code to override the default tax rate for a location. In most cases, sales tax is computed as a use tax based on the tax code applicable to the ship to or usage destination. However, how merchandise is ultimately used may also result in a different tax rate within the same ship to or usage destination.

Indicates whether an object is a physical good or service.

Select to indicate the location where the service is most often performed:

Buyer's: Select if the service is physically performed at the buyer location.

Ship From: Select if the service is physically performed at the ship from location.

Ship To: Select if the service is physically performed at the ship to location.

Supplier's: Select if the service is physically performed at the supplier's location.

Note. This field is available only when you select a physical nature of Service.

Primary Buyer

Account

Alt Account(alternate

account)

Displays the default from the Item Categories - Category Definition page in the

Define Item Control Data component. You can override the information for individual items. The primary buyer value is used as the default buyer when the item is added to a requisition.

Select an account number to identify the general ledger account to be associated with this item. This account number is used on transactions when an item ID is not specified at the line level of a PeopleSoft Purchasing purchase order and a default account is not specified for the transaction.

Select an alternate account number to identify the general ledger account to be associated with this item. This field is available if you enable the Alternate

Account option for the organization and for the general ledger business unit.

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Chapter 4

Product

Defining Purchasing Item Information

Select a product that the system should assign for this purchasing item when a product is not specified at the line level of a purchase order.

Associated Picture

The fields in this group box are used to attach image files or other documents to the item descriptions. You can attach any type of file that you have defined on the File Locations page. The file that you want to attach must reside in the file directory defined for the file type on the File Location page.

File Name

File Extension

Enter the name of the file that you want to attach.

Enter the file extension, such as .bmp or .jpg.

Click the Image Doc Launcher button to launch an attached file. This button is available only if you entered a file name and extension in the fields in the

Associated Picture group box.

See Also

Chapter 4, "Defining Purchasing Item Information," Defining Purchasing Item Vendor UOM and Pricing

Information, page 91

Chapter 4, "Defining Purchasing Item Information," Defining Purchasing Item Categories, page 67

Chapter 4, "Defining Purchasing Item Information," Defining Item Categories, page 69

Entering Purchasing Item Specifications

Access the Item Specifications page (click the Item Specifications link on the Purchasing Attributes page).

Item specifications that you enter on this page are not automatically carried to requisitions and purchase orders for the associated item unless you specify this by selecting the Copy to Transactions check box. If this check box is not selected, you must access the Include Item Specifications page to copy specifications on requisitions and purchase orders. Use the Include Item Specifications page to copy these specifications to the line comments for a transaction.

If you have selected Send to Vendor here, the Send to Vendor option on the Line Comments page for the transaction is automatically selected.

Comments

Copy to Transactions

Send to Vendor

Enter the specifications for the item using up to 2,000 characters.

Select this check box to automatically copy the item specifications comments into the line comments when this item is referenced on a requisition or purchase order transaction.

Select to make this specification information available to be sent to the vendor as part of the purchase order.

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Defining Purchasing Item Information Chapter 4

Defining Purchasing Controls

Access the Purchasing Attributes - Purchasing Controls page (Items, Define Items and Attributes, Purchasing

Attributes, Purchasing Controls).

Purchasing Controls page (1 of 2)

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Chapter 4 Defining Purchasing Item Information

Purchasing Controls page (2 of 2)

Matching Controls

If you do not specify tolerance values for the business unit, the system uses tolerance values defined for the item's purchasing attributes.

The fields on this tab match those on the Purchasing Business Unit Attributes page and the Purchasing

Definition - Business Unit Options page.

Specify default price tolerances for the PeopleSoft Payables Matching process (AP_MATCH) that matches purchase orders, receipts, and vouchers to verify vendor charges. When you use matching with PeopleSoft

Purchasing and PeopleSoft Payables to verify vendor charges, the system uses four price tolerances to determine whether the purchase order price and voucher price are within the tolerances and thus whether the purchase order and purchase order voucher match. These fields appear by default from the Item Categories -

Category Definition 2 page. If you leave any of the tolerance fields set to 0 or blank, the system assumes a zero tolerance. If you don't want to use the tolerance fields, set the amount fields that you don't want to use to

9999999 and the percentage fields that you don't want to use to 100.

Receiving Controls

Define tolerances to be used in receiving this item. These become the default values for purchase order lines when this item is selected. The values appear by default from the Item Categories - Category Definition 2 page.

If you do not specify tolerance values for the business unit, the system uses tolerance values defined for the item's purchasing attributes.

The fields on this tab match those on the Purchasing Business Unit Attributes page and the Purchasing

Definition - Business Unit Options page.

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Defining Purchasing Item Information Chapter 4

Include Past Due

Kanban POs (include

past due Kanban purchase orders)

This field is available if you are using PeopleSoft Manufacturing, thus enabling you to receive by Kanban ID.

Select this check box to include past-due Kanban purchase order quantities when the Receiver Load process searches for purchase orders to match up with Kanban

IDs for receipt creation.

If you select this check box, the Receiver Load process can receive a schedule for which the due date has passed, but which still contains a quantity to be received.

If you do not select this check box, the Receiver Load process searches for purchase orders based on the due date of the schedule.

When using vendor replenishment with PeopleSoft Flow Production, select the

Include Past Due Kanban POs check box to help ensure that the receipts and purchase orders have the opportunity to match up. Because vendor replenishment occurs frequently, if you set the Early Ship Reject Days value too low, the

Kanban receiving process may not permit you to receive the material because it arrived too early.

Inspect Sample Percent Enter the percentage of received units to inspect. This value is calculated using

the Inspection UOM (inspection unit of measure) value.

Sourcing Controls

Use Category Sourcing

Controls

Select to use the sourcing controls set on the Item Categories - Category

Definition 2 page.

If you have set up vendors at the category level and select this check box for items using this category, then the vendors that you entered for the category must also be entered in the purchasing attributes.

Sourcing Method

Select the sourcing method to use with this item. Methods include:

B (Basic)

F(Flexible): When you select this method, the system makes the remaining fields in this section available.

Sched Split (schedule split)

See Chapter 29, "Using Purchase Order Sourcing," Understanding Sourcing

Methods, page 850.

Misc. Controls and Options

Auto Select

Select if you want the AutoSelect Requisitions process (PO_REQSORC) to pick up the item when it sources requisition lines. If this check box is selected, the

AutoSelect Requisitions process will include the item. If this condition is not met, the AutoSelect Requisitions process will not include the item.

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Chapter 4 Defining Purchasing Item Information

Contract Required

Accept Any Vendor

Select this check box if you need a contract to order the item on a requisition or purchase order. If this check box is selected, you must specify a valid contract for the item on the purchase order when you use the item, or you must release the item from an active contract.

Select this check box if you can order an item without setting up vendors for the item. If you do not select this check box, you must establish an item-vendor relationship for the item on the Purchasing Attributes - Item Vendor page before you can include it on a purchase order.

RFQ Required (request

for quote required)

Select this check box if the item must go through the RFQ cycle before it can be included on a purchase order. If you do not select this check box, you can order the item directly.

Accept Any Ship To

Select this check box if you can order an item without setting up a ship to address for it.

Note. This check box does not override the corresponding field set up for the

item on the Purchasing Attributes - Item Vendor page. If you do not select the check box on either page, you must establish an item-vendor ship to relationship on the Item Ship To Locations page.

Stockless Item

Available in All Regions Select if you want to bypass regional security.

Taxable

Select to indicate that the item is taxable using system tax calculations.

Close PO Under Percent

Tol (close purchase order

under percent tolerance)

Enter an acceptable percentage of the total quantity or amount that can be outstanding while still enabling the purchase order to be closed. If the quantity or amount not yet received is less than or equal to the value entered, the Close

Purchase Orders process will treat the purchase order as fully received.

Include in Planning

Select to enable purchase options to be created in PeopleSoft Supply Planning for the PeopleSoft Inventory business unit related to this item. The purchase option then enables the creation of new purchase orders through PeopleSoft Supply

Planning for the PeopleSoft Inventory business unit.

PeopleSoft Supply Planning uses sourcing templates that contain a sequenced list of purchasing sourcing options based on the item attributes that you define in

PeopleSoft Purchasing. You can let the system load the options automatically, or you can set up sourcing templates manually and maintain the options. These templates are needed when multiple sourcing options exist for an item. When you assign multiple sourcing options to a single item, you create a more flexible planning situation by providing more information to source demand.

Ship Via

Select this check box if an agreement has been set up with the vendor to supply this item for par inventory replenishment.

Select a shipping method if you always want this item to be shipped using the method selected here.

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Defining Purchasing Item Information Chapter 4

See Also

Chapter 4, "Defining Purchasing Item Information," Defining Priority Vendors by Item Ship To Location, page 110

Chapter 4, "Defining Purchasing Item Information," Defining Attributes and Priorities for Purchasing Item

Vendor Relationships, page 86

Chapter 26, "Managing Requests for Quotes," page 609

Chapter 34, "Closing Purchase Orders," Understanding the Close Purchase Orders Process, page 1003

Chapter 29, "Using Purchase Order Sourcing," page 807

Defining Purchasing Business Unit Attributes

Access the Purchasing Business Unit Attributes page (click the BU Attributes (business unit attributes) link on the Purchasing Attributes - Purchasing Controls page).

If you do not specify tolerance values for the business unit, the system uses tolerance values defined for the item's purchasing attributes.

When you access this page to specify business-unit specific attributes, tolerance values appear by default from the item's purchasing attributes. To define zero tolerances on this page, you must manually clear the tolerance fields.

If you access this page but do not enter any values, and you click OK to exit the page, the system records default tolerance values from the purchasing attributes to create business-unit specific values. Click Cancel instead to avoid this situation.

The fields on this page match those on the Purchasing Attributes - Purchasing Controls page and the

Purchasing Definition - Business Unit Options page.

Defining Attributes and Priorities for Purchasing Item Vendor Relationships

Access the Purchasing Attributes - Item Vendor page (Items, Define Items and Attributes, Purchasing

Attributes, Item Vendor).

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Chapter 4 Defining Purchasing Item Information

Purchasing Attributes - Item Vendor page (1 of 2)

Purchasing Attributes - Item Vendor page (2 of 2)

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Defining Purchasing Item Information Chapter 4

Vendor Priorities

Priority Loc (priority

location)

Select the ordering location for the item and vendor. The vendor default location appears by default.

Several processes in PeopleSoft Purchasing use this field:

Purchase order sourcing uses the item vendor priority for orders if no item and ship to priority vendor has been defined.

The Sourcing Load process used by PeopleSoft Supply Planning uses the item vendor priority if no item and ship to priority vendor has been defined.

The Requisition Loader process uses the first item vendor priority location if no location is specified.

Item Vendor

Vendor Set ID

Vendor Lookup

Status

Vendor ID

Priority

Allocation %

Include in Planning

Vendors Catalog

Select a vendor setID. The value determines the values available for the vendor

ID.

Click to access the Vendor Search page, where you can define search criteria to locate vendors.

Select a value that describes the status of the vendor. Values include:

Active.

Discntued (discontinued).

Hold.

Inactive.

To Be Del (to be deleted).

Select the vendor ID. Only values for the selected vendor setID are available.

Enter a priority rank for the vendor. When the PO Calculations process selects a vendor for the item, it uses the priority ranking with the lowest number (1) as the first choice. When you add another vendor, the next priority ranking is automatically assigned.

If you selected Sched Split or Cumulative Split in the Sourcing Method field on the Item Categories - Category Definition 2 page, enter the allocation percentage for the selected vendor.

Select to include purchase options in PeopleSoft Supply Planning. Deselect this check box to not include purchase options in PeopleSoft Supply Planning.

Enter a vendor catalog assigned to the selected item-vendor combination. The system uses the value as a default value on the Purchase Order Line Details page.

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Chapter 4

Vendor Item ID

Item Extension

Description

Defining Purchasing Item Information

Enter an item ID.

Enter an item extension. The system uses this value to further define an item.

Enter an item description for this vendor associated with the item. This field is informational only and is not used anywhere else in PeopleSoft Purchasing.

Associated Picture

Use this section to access or define a picture for use with this item vendor.

File Name

File Extension

File Path

URL

Open URL

Enter the name of the file that contains the picture.

Enter the type of file.

Enter a path to where the file is located.

Enter an URL address at which the file is stored.

Click to access the picture file.

Vendor Attributes

Price Loc (price location) Select a vendor location. Vendor locations are set up on the Vendor Information -

Location page. Location codes provide the flexibility to set up different pricing information for the same item-vendor combination, depending on which vendor location you identify as the pricing location.

Price Date

Select the date used for effective-dated price adjustments:

Due: Price adjustments based on the date that the order was due to be received.

PO (purchase order date): Price adjustments based on the date that the order was placed.

Price Qty (price quantity) Select a price quantity. Based on the selection, the system uses the Line or

Schedule quantity to determine any applicable price breaks.

Origin Country

Select the country in which the item was originally manufactured. This information is generally required for the Intrastat Arrivals report; however, the

PeopleSoft Intrastat Transaction Loader uses the field for return-to-vendor transactions (RTVs).

If you leave the field blank, the transaction loader uses the country code of the shipping PeopleSoft Inventory business unit as the default value for RTVs.

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Defining Purchasing Item Information Chapter 4

Region of Origin

Accept Any UOM

(accept any unit of measure)

Accept Any Ship To

Stockless Item

Select the region or department from which the item was initially shipped for return to vendor. This information is generally required for the Intrastat

Dispatches report.

If the initial shipping region or department for return to vendor is different from the one defined for the PeopleSoft Inventory business unit, enter a specific state code. The state code should belong to the country of the PeopleSoft Inventory business unit.

If you leave the field blank, the Intrastat Transaction Loader uses the state code of the shipping PeopleSoft Inventory business unit as the default region of origin.

This default value is also used if a state code does not belong to the country defined for the PeopleSoft Inventory business unit.

Select this check box if this item can be ordered in any UOM from this vendor. If you do not select this check box, you must set up an item-vendor UOM relationship for each UOM in which the item can be purchased from the vendor.

Note. This check box does not affect requisition processing. The system does not

use this check box when displaying the available UOMs for an item on a requisition. The available UOMs for a requisition item are item vendor UOMs and item ordering UOMs.

Select this check box if you want to receive the item from the vendor at any of the ship to locations. If you do not select this check box, you must establish an item-vendor ship to relationship on the Item Ship To Locations page.

Note. This check box overrides the corresponding field set up for the item on the

Purchasing Attributes - Purchasing Control page. If you do not select the Accept

Any Ship To check box on either page, you must establish an item-vendor ship to relationship on the Item Ship To Locations page.

Select this check box if an agreement has been set up with the vendor to supply this item for par inventory replenishment.

Note. If the Stockless Item check box was not selected for the item on the

Purchasing Attributes - Purchasing Controls page, it won't be available at the item-vendor level on this page.

Lead Time Days

If you do not select the Use Item Standard Lead Time check box, this field is available for you to enter vendor-specific lead-time values.

Check Order Multiples

Select this check box if you want to use order multiples for this item vendor and location. The system will check for order multiples for all the associated UOMs for this item vendor and location.

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Chapter 4 Defining Purchasing Item Information

Rounding Rule

When using order multiples, specify the rounding rule for the system to use so that calculations involving the item quantity that you order result in whole numbers. Options are:

Natural Round: Decimal values greater than or equal to 0.5 are rounded up to the nearest whole number, and decimal values less than 0.5 are rounded down to the nearest whole number. For example, 1.223 rounds down to 1.0000, while 1.678 rounds up to 2.0000.

Round Up: All decimal values are rounded up to the nearest whole number.

So both 1.223 and 1.678 round up to 2.0000.

See Chapter 4, "Defining Purchasing Item Information," Understanding Order

Multiple Rounding Rules, page 74.

See Also

Chapter 4, "Defining Purchasing Item Information," Defining Priority Vendors by Item Ship To Location, page 110

Chapter 4, "Defining Purchasing Item Information," Defining Attributes and Priorities for Purchasing Item

Vendor Relationships, page 86

Chapter 29, "Using Purchase Order Sourcing," Running the PO Calculations Process, page 844

Defining Purchasing Item Vendor UOM and Pricing Information

Access the Vendor's UOM and Pricing Information page (click the Item Vendor UOM link on the Purchasing

Attributes - Item Vendor page).

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Defining Purchasing Item Information Chapter 4

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Vendor's UOM and Pricing Information page

Unit Of Measure

Default

Select to have the PO Calculations process use this UOM on the purchase order when this vendor is chosen to source this item to. When multiple UOMs are established for the item-vendor combination, users can select which UOM to use as the default.

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Chapter 4 Defining Purchasing Item Information

Min Qty (minimum

quantity) and Max Qty

(maximum quantity)

Order Quantity

Multiple

Enter the quantity limits for orders in the selected UOM.

If you enter a requisition that does not fall within these quantities, you receive a warning. You do not receive an error message because consolidation may bring the request within the defined limits. If the limits are not met when the request is processed by the PO Calculations process, you receive an error message.

If you enter a purchase order that does not fall within these quantities, you receive an error message and the system uses the standard UOM and item standard price.

Enter the order quantity multiple for each item vendor and UOM. This field is used if you are using the order multiples functionality.

A quantity of 1 appears by default.

Note. The order multiple for the UOM is applicable if the Qty Precision field

value is Whole Nbr (whole number) only.

Packing Details

Effective Dated UOM

(effective dated unit of measure)

Update PO(update

purchase order)

Click to access the Packing Details page. Use this page to enter packing volume and weight information for the item along with item package dimensions by vendor.

Click to access the Effective Dated UOM page. Use this page to enter effectivedated conversion rate changes along with packing detail information.

Click to access the Update Purchase Order page. Use this page to update existing purchase orders with the new effective-dated UOM conversion rate changes.

Conversion to Item Base UOM

If the vendor ordering UOM for the item is different from the item's standard UOM, specify how to convert the vendor UOM.

Rate Type

Select from these values:

Override: Select if the standard conversion rate does not apply for this itemvendor combination. Enter a conversion rate in the field that appears. The value that you enter in this field represents the conversion rate between the vendor

UOM and one unit in the standard UOM.

Standard: Select to use the standard conversion rate.

For example, suppose that the standard UOM for the item is EA (each) and the vendor UOM is BOX. The standard conversion between EA and BOX is 12 to 1, that is, 12 each per box. However, this vendor has 24 eaches per box. Select the

Override field value to specify a new conversion rate of 24 to 1.

Std UOM Rate (standard

unit of measure rate)

Displays the standard conversion rate between the vendor UOM and the item's standard UOM that was established on the Units of Measure page.

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Defining Purchasing Item Information Chapter 4

Qty Precision (quantity

precision)

Select the quantity precision to be used in UOM conversions:

Decimal: Round to four decimal places.

Whole Nbr (whole number): Round to a whole number and enable only a whole number to be entered.

Get Std Rate (get

standard rate)

Click to display the standard UOM rate.

UOM Price Attributes

Qty Rcvd Tolerance %

(quantity received tolerance percentage)

Enter the quantity received tolerance percentage to be used in the receiving transactions for this item-vendor UOM combination. This field appears by default from the Purchasing Attributes - Purchasing Controls page.

Standard Price Update

Statusand BU Price

Update Status (business

unit price update status)

Select from these options for updating standard prices, business unit standard prices, or both:

No Update: Do not update prices.

To Be Upd (to be updated): Price is updated on the date in the Eff Date (effective date) field.

Note. If duplicate rows exist, the system uses these rules: If the effective dates

are the same, the system checks the vendor priority. If multiple records are entered for the same vendor with the same effective date, the system selects the record with the standard UOM.

Updated: Price has been applied.

Matching Controls

Use Item Standard

Tolerances

Select this check box if you want to use the price tolerances established in the item's purchasing attributes. If not, specify the price tolerances in the tolerance fields provided.

Entering Item Vendor UOM Conversion Rate Changes

Access the Effective Dated UOM page (click the Effective Dated UOM link on the Vendor's UOM and

Pricing Information page).

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Chapter 4 Defining Purchasing Item Information

Effective Dated UOM page

Unit Of Measure

Effective Date

Select the date when the new conversion rate becomes effective. The current date appears by default.

Conversion Rate to Base

UOM(conversion rate to

base unit of measure)

Enter the new conversion rate based on the base UOM.

Update PO (update

purchase order)

Click to access the Update Purchase Order page. Use this page to update the existing purchase orders with the conversion rate change.

Packing Details

Use all the fields in this section to specify the packing details for this effective date.

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Defining Purchasing Item Information Chapter 4

Other Information

OK

When you click this button, a message appears asking whether you want to update the item vendor UOM with these changes. You can update the information or you can choose not to update the information.

Note. When you are updating from this page, the Item Vendor UOM is updated

with the most current effective-dated UOM regardless of which effective date row is shown on this page.

Updating Purchase Orders with Item Vendor UOM Conversion Rate Changes

Access the Update Purchase Order page (click the Update PO link on the Vendor's UOM and Pricing

Information page or the Effective Dated UOM page).

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Update Purchase Order page

Search Criteria

You can access this page in a few different ways. If you access this page from the Vendor's UOM and Pricing

Information page, most of the fields in the search criteria section of this page appear by default from that page. If you access this page from the Effective Dated UOM page, most of the fields in the search criteria section of this page appear by default from that page.

Effective Date

Select an effective date. The current date appears by default when you access this page from the Vendor's UOM and Pricing Information page.

The effective date from the Effective Dated UOM page appears by default when you access this page from the Effective Dated UOM page.

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Chapter 4 Defining Purchasing Item Information

PO Date Type(purchase

order date type)

Select the date type for the system to use to retrieve the purchase orders for update. The system compares the effective date to the purchase order date type.

Options are:

PO Date (purchase order date): All purchase order schedules within the purchase order lines that meet the search criteria and for which the PO date is greater than or equal to the effective date appear in the Retrieved Rows group box.

Due Date: All purchase order schedules within the purchase order lines that meet the search criteria and for which the due date on the schedule is greater than or equal to the effective date appear in the Retrieved Rows group box.

Price Date Type: The system first determines the price date type (PO date or due date) from the purchase order line. Then the system retrieves the information based on the two preceding scenarios.

Note. Because price date type is defined at the purchase-order line level, each

line is retrieved based on its price date type (PO date or due date).

Search

Click to have the system display in the Retrieved Rows group box all the purchase order schedules that match the search criteria entered.

Retrieved Rows - PO Schedules

Sel(select)

PO ID (purchase order

ID)

Click this check box next to each purchase order schedule that you want to update with the new conversion rate change.

Click the Select All link to select all the purchase order schedules. Click the

Clear All link to clear all the purchase order schedules that you previously selected.

Click to access the Maintain Purchase Order - Purchase Order page. Use this page to view and maintain the purchase order.

Retrieved Rows - Detail

Displays the existing purchase order conversion rate.

PO Conversion Rate

(purchase order conversion rate)

New Conversion Rate

Displays the new conversion rate that the system will use to update the purchase order schedules that you select.

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Defining Purchasing Item Information Chapter 4

Other Buttons

Update Selected Rows

Click to have the system recalculate the expected standard quantity and store the new conversion rate for all the selected purchase order schedules. The new conversion rate that is used is from the most recent effective-dated row that appears on the Effective Dated UOM page compared against the effective date that you select in the search criteria.

Updating Item Vendor Unit-of-Measure Conversion Rates

This section discusses how to update item vendor unit-of-measure conversion rates.

Page Used to Update Item Vendor Unit-of-Measure Conversion Rates

Page Name Definition Name

Update Item Vendor UOM

(update item vendor unit of measure)

PO_RUN_UPDIVUOM

Navigation

Items, Define Items and

Attributes, Update Item

Vendor UOM

Usage

Initiate the Update Item

Vendor UOM Application

Engine process

(PO_UPDIVUOM), which updates current and future item vendor unit-ofmeasure conversion rate changes.

Updating Item Vendor Unit of Measure Conversion Rates

Access the Update Item Vendor UOM page (Items, Define Items and Attributes, Update Item Vendor UOM).

Effective Date

Select the effective date from which to update the item vendor UOM conversion rate changes.

The item vendor UOM is updated with the most recent effective-dated UOM changes using the effective date that you select on this page as the reference. The effective date that you select on this page can be in the past, present, or future.

Note. The timing for running this process is important. If the process runs after

midnight, set the future conversion rate date to the date that the rate actually becomes effective. If it runs before midnight, enter the future conversion rate date as one day earlier. Alternatively, you can modify the selection criteria to select those conversion rate changes for which the effective date is tomorrow.

Also, to ensure that the future-dated conversion rate gets updated correctly on weekends and holidays, we suggest that you run this process every day, including weekends and holidays. Plus, we suggest that you run the process the first thing in the morning, before the start of each workday.

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Chapter 4 Defining Purchasing Item Information

Capturing Item Miscellaneous Charges

To define miscellaneous charges for item and category vendors, use the Item and Category Vendor

Miscellaneous Charges component (ITM_CAT_VNDR_MC).

This section discusses how to assign miscellaneous charges and templates to items and categories.

Pages Used to Capture Item Miscellaneous Charges

Page Name

Miscellaneous Charges

Selection

Miscellaneous Charges -

Miscellaneous

Definition Name

ITM_CAT_MC_CRITERA

ITM_CAT_VNDR_MC

Navigation

Usage

Items, Define Items and

Attributes,

Miscellaneous Charges,

Miscellaneous Charges

Selection

Enter the criteria for the miscellaneous charges that will appear on the

Miscellaneous Charges -

Miscellaneous page.

Click the Selection

Criteria link on the

Miscellaneous Charges

- Miscellaneous page.

Click the OK button on the

Miscellaneous Charges

Selection page.

Assign miscellaneous charges and miscellaneous charge templates to different item and category combinations.

Assigning Miscellaneous Charges and Templates to Items and Categories

Access the Miscellaneous Charges - Miscellaneous page (Items, Define Items and Attributes, Miscellaneous

Charges, Miscellaneous Charges Selection).

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Defining Purchasing Item Information Chapter 4

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Miscellaneous Charges - Miscellaneous page

Category

Item

Select a value to associate these miscellaneous charges with a category-vendor business unit ship-to location, category vendor business unit, category vendor combination, or category. Otherwise, leave the field blank.

Select a value to associate these miscellaneous charges with an item-vendor business unit ship-to location, item vendor business unit, item vendor combination, or item. Otherwise, leave the field blank.

Vendor,Location,Ship

To,Unit

If you want to associate these miscellaneous charges with a combination that includes any of these fields, select a value for the field.

Template ID

To apply a template of miscellaneous charges, select the template ID.

Miscellaneous charge templates are defined on the Misc Chg/Landed Cost

Template (miscellaneous charge/landed cost template) page.

Calc Method (calculation

method)

Select the method to use to calculate this charge:

FL (flat amount): A flat amount that you enter in the Amount field.

FR (free): No charge is applied.

UNT (per unit amount): Calculates the charge based on the number of items on the purchase order line.

VAL (percent of value): Calculates the charge based on a percentage of the material value.

VOL (rate based on volume): Calculates the charge based on the total volume for the purchase order line.

WT (rate based on weight): Calculates the charge based on the total weight for the purchase order line.

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Chapter 4 Defining Purchasing Item Information

Alloc Method (allocation

method)

Select the method to use to allocate the miscellaneous charge: None, Quantity,

Volume, Weight, or Matl Value (material value). Charges are allocated based on the value of the items on each selected line.

Merch Vendor

(merchandise vendor)

This check box setting appears by default from the miscellaneous charge's purchasing attributes on the Misc Charge/Landed Cost Defn page. If you select this check box, charges are paid to the purchase order vendor. If you do not select this check box, you can use the Vendor and Vendor Location fields to designate a third-party vendor.

See Also

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Defining Miscellaneous Charges and Landed Costs

Setting Up Item Vendor Price Adjustment Rules

To set up vendor price adjustments, use the Price Adjustment component (PRICE_ADJUSTMENT).

This section provides an overview of item vendor price adjustments and discusses how to:

Define item vendor price adjustments.

Define item vendor price adjustment details.

Understanding Item Vendor Price Adjustments

With PeopleSoft Purchasing item vendor price adjustment features, you can define vendor price adjustments based on specific purchase order conditions, such as item quantity and ship to locations. The pricing schemes are ultimately used on purchase orders, where you can view the details of how a particular price was calculated.

You set up vendor price adjustments for items that have item-vendor relationships already established on the

Purchasing Attributes - Item Vendor page. You can define as simple or complex a pricing scheme as you need for each of the items. You can also define contract price adjustments on the PO Line Price Adjustment

(purchase order line price adjustment) page and combine them with the vendor price adjustments to define specific contract pricing terms.

See Also

Chapter 4, "Defining Purchasing Item Information," Defining Attributes and Priorities for Purchasing Item

Vendor Relationships, page 86

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Using Voucher and Order

Contracts," Entering Contract Purchase-Order Line Price Adjustments

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Defining Purchasing Item Information Chapter 4

Pages Used to Set Up Item Vendor Price Adjustment Rules

Page Name

Price Adjustment

Definition Name

PRICE_ADJUSTMENT

Navigation

Items, Define Items and

Attributes, Price

Adjustments, Price

Adjustment

Price Adjustment Details

PRICE_ADJUST_DTLS

Items, Define Items and

Attributes, Price

Adjustments, Price

Adjustment Details

Usage

Define the rules for the system should follow when calculating the vendor adjusted price from the vendor's base price. You can define effective-dated adjustment rule sequences for each item-vendor combination.

Define the quantities and adjustment methods for each of the price adjustment rules.

Defining Item Vendor Price Adjustments

Access the Price Adjustment page (Items, Define Items and Attributes, Price Adjustments, Price Adjustment).

Calc Type (calculation

type)

Seq (sequence)

For each adjustment rule, select one type of method by which to calculate adjustments. Choose from:

Increment Adjustments: Each valid adjustment is made against the current (base or adjusted) price. For example, if you have a base price of 100 and two percentage adjustments of

10 percent each, then the first adjustment is deducted from the base price of 100, for a current adjusted price of 90. The second adjustment of

10 percent is deducted from 90 for a final adjustment price of 81.

Sum All Adjustments: Adjustments are summed and made against the original base price. For example, if you have a base price of 100 and two percentage adjustments of

10 percent each, the system takes the total adjustment of

20 and deducts it from the base price of 100 for a final adjusted price of 80.

Enter the sequence number for each rule. Price adjustment rules are applied in ascending order.

Dflt UOM (default unit of

measure)

Select to use the default UOM for the item established on the Vendor's UOM and

Pricing Information page. The system makes a default UOM adjustment when the UOM on the transaction is the same as the vendor default UOM or when the

UOM on the transaction is not established for the item-vendor combination.

UOM Match (unit of

measure match)

Select to define an adjustment rule based on a specific UOM established for the item-vendor combination.

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Chapter 4 Defining Purchasing Item Information

UOM (unit of measure)

Match Ship

If you selected the UOM Match check box, select the UOM that you want to use for adjustments. The item-vendor UOMs must first be established on the

Vendor's UOM and Pricing Information page.

Select to define an adjustment rule based on a specific ship to location code

(setID/ship to) established for the item-vendor combination.

SetID,Ship To

Hard

Stop Price

Select the values if you selected the Match Ship check box.

Select to indicate a hard price adjustment. This is an adjustment that the system uses to the exclusion of all other adjustments, even those with earlier sequence numbers.

Select to indicate a final price adjustment. No further adjustments can be made after the system applies this adjustment.

Ignore Flg (ignore flag)

Select to create a price adjustment scenario in which this price adjustment is ignored if the order qualifies for another adjustment. If no other adjustment applies, this adjustment applies even if the Ignore Flg check box is selected.

Suppose that you have the following price adjustment conditions for an item:

Apply a hard 10 percent discount if the UOM matches.

Apply a 100 USD discount, but ignore this if another adjustment applies. The

Ignore Flg is selected for this adjustment.

If you order the item in the matching UOM, the 10 percent discount is applied and the 100 USD discount is ignored, according to the selected Ignore Flg option.

If you order the item in a nonmatching UOM, you qualify only for the 100 USD discount. Because this is the only adjustment that applies, the adjustment can be applied.

See Also

Chapter 4, "Defining Purchasing Item Information," Defining Attributes and Priorities for Purchasing Item

Vendor Relationships, page 86

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Maintaining Vendor

Information," Defining Vendor Locations

Defining Item Vendor Price Adjustment Details

Access the Price Adjustment Details page (Items, Define Items and Attributes, Price Adjustments, Price

Adjustment Details).

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Defining Purchasing Item Information Chapter 4

Copy Price Adj. Qty

(copy price adjustment quantity)

Min Qty/Max Qty

(minimum quantity/maximum quantity)

Adjusted Price

Click to define the same price break quantities for multiple adjustment details.

Define the quantities for a location on the Price Adjustment Details page, then access the Price Adjustment page and insert a new row in the Adjustment by

UOM scroll area. Return to the Price Adjustment Details page, access the newly inserted detail row, and click this link to copy the adjustment quantities from the previous definition to the new definition.

Enter the minimum purchase order quantity allowed for this price. When you insert a new range, the minimum quantity for the new range is supplied by default to the maximum quantity of the old range plus one.

Enter the adjusted price that you want. The adjustment amount or percent is automatically calculated and appears.

Note. This column is provided for informational purposes only. If you have

multiple adjustments for a particular transaction, the final adjusted price will not equal any of the adjusted prices calculated for the adjustment rules. The adjusted price provides an idea of what would happen if only the single adjustment were applied.

Updating Standard Prices and Business Unit Standard Prices

This section provides overviews of price updates and the Price Update process and discusses how to:

Use standard price and business unit standard price updating online.

Use standard price and business unit price batch updating.

Run the Price Update process.

You can also update future effective-dated prices by running an application engine process.

Note. You can use Item Catalog Maintenance to update item data for multiple items at one time by extracting

them from the production tables into the item staging tables, where you can then alter the data.

See Also

PeopleSoft Enterprise Managing Items 9.1 PeopleBook, "Using Item Catalog Maintenance"

Understanding Price Updates

Your PeopleSoft system may have multiple prices for an item, including the item's standard price, item and vendor price, and standard price by business unit. In addition, if a contract is in place for an item, contract pricing may override other prices. At times you may need to update prices in multiple places to keep information current when prices change and to prevent errors during the PO Build process.

The price update feature enables you to implement price changes by:

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Chapter 4 Defining Purchasing Item Information

Automatically updating an item's standard price whenever an item/vendor price with a current effective date is updated using the Vendor's UOM and Pricing Information page.

Updating the item's standard price based on an item/vendor price that was entered in the past for an upcoming effective date.

After the future effective-dated prices are entered, and the Price Update process is run on or after the date that the item/vendor price becomes effective, the item's standard price is updated to reflect the new item/vendor pricing.

Automatically updating an item's business unit standard price whenever an item/vendor price is updated using the Vendor's UOM and Pricing Information page.

Updating the item's business unit standard price based on an item/vendor price that was future effectivedated at the time that it was entered.

After the future effective-dated prices are entered, and the Price Update process is run on or after the date the price becomes effective, the item's standard price is updated to reflect the new item/vendor pricing.

Updating standard prices with the current effective item/vendor prices and business unit standard prices that are loaded through the Item Loader.

Note. Changing an item's contract price does not automatically trigger changes to item/vendor pricing or item

standard prices. Contract pricing is a special pricing for purchases meeting specific criteria. Not all purchases may qualify for contract pricing; therefore, the contract price does not exist on the item definition. The system automatically assigns a contract to a purchase order when the criteria are met.

See Also

PeopleSoft Enterprise Managing Items 9.1 PeopleBook, "Loading Items"

Understanding the Price Update Process

The Price Update process scans the Item/Vendor tables for dates that have become effective and calculates the new standard price or business unit standard price based on the price entered for that effective date on the

Vendor's UOM and Pricing Information page. It also scans for prices that have been loaded into the system with the Item Loader.

You must run the Price Update process to pick up any future effective-dated prices that have become effective and to calculate the new prices. You can also use this page to update a price that is currently effective or to update a price that is effective within a range of dates.

You must choose to use either the current date or date range. If you select the Date Range option, you must select a range of dates. The process compares the effective date of the Item/Vendor Price record to the current date or the date range to determine whether the price is in effect. The process applies updates in the order of effective date, applying the most current effective date as the end result.

You will probably want to schedule the Price Update process to run regularly if the system includes many price changes.

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Defining Purchasing Item Information Chapter 4

Pages Used to Update Standard Prices and Business Unit Standard Prices

Page Name Definition Name

Vendor's UOM and Pricing

Information (vendor's unit of measure and pricing information)

ITM_VENDOR_UOM

Purchasing Business Unit

Attributes

IMT_BU_PUR

Item Loader

Update PO Price

RUN_IN_ITMLOAD

RUN_PO_PRICE_UPD

Navigation Usage

Items, Define Items and

Attributes, Purchasing

Attributes, Item Vendor

Click the Item Vendor

UOM link on the

Purchasing Attributes - Item

Vendor page.

Update item/vendor prices and choose to apply the price changes to the item's standard price and

PeopleSoft Purchasing business unit standard prices.

Items, Define Items and

Attributes, Purchasing

Attributes, Purchasing

Controls

Click the BU Attributes link on the Purchasing Attributes

- Purchasing Controls page.

Mark items for standard price updating at the business unit level. This is a mandatory step for updating at the business unit level.

SCM Integrations, Process

Transactions, Items, Item

Loader

Mark items for standard price updating and business unit standard price updating when item/vendor UOM price records are entered in batch. The Item Loader process (IN_ITMLOAD) is run to update the PeopleSoft application tables with the item data in the Item Loader staging tables.

Items, Define Items and

Attributes, Update PO Price

Run the Price Update application engine process

(PO_PRICE_UPD) to scan the Item/Vendor UOM tables to locate item/vendor prices that have become effective and calculate the item's new standard price or business unit standard price based on the item/vendor

UOM price.

Using Standard Price and Business Unit Standard Price Updating Online

To update standard prices and business unit standard prices online:

1. Access the Vendor's UOM and Pricing Information page for the item and vendor that must be updated.

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Chapter 4 Defining Purchasing Item Information

2. Change the pricing on the current row in the UOM Attributes group box or insert a new row with a new price.

Note. For the system to prompt the automatic price change feature, the row selected for the price change

cannot have a status of Inactive. If the row is inactive, an error message appears when the changes are saved.

3. Select To Be Upd (to be updated) in the Standard Price Update Status field to apply the price change to the item's standard price on the Purchasing Attributes - Purchasing Attributes page.

4. Select ToBe Upd (to be updated) in the BU Price Update Status field to apply the price change to the standard prices by PeopleSoft Purchasing business unit.

You must also select the Update Business Unit Price check box on the Purchasing Business Unit

Attributes page because the business unit is not specified on the Vendor's UOM and Pricing Information page.

Note. To use the price as a reference or use another vendor price, for example, you can select No Update

instead of To Be Upd.

5. Verify that you have selected only one item/vendor price to update the item's standard prices.

If multiple item/vendor prices are selected when you save the item changes, the system will prompts you to proceed with the new selected item/vendor price or keep the previous selected price.

6. Click the OK button on the Vendor's UOM and Pricing Information page.

7. Save the Purchasing Attributes - Item Vendor page.

The system updates the standard prices as in the following way:

If you selected To Be Upd (to be updated) in the Standard Price Update Status field and the new price is effective currently, the new price appears in the Standard Price field of the Purchasing Attributes -

Purchasing Attributes page.

When the price is updated, the value in the Standard Price Update Status field on the Vendor's UOM and Pricing Information page is changed to Updated by default.

If necessary, the UOM and currency of the item/vendor price are converted from the vendor UOM and currency code to the standard UOM and currency code located on the Purchasing Attributes -

Purchasing Attributes page.

If you selected To Be Upd (to be updated) in the BU Price Update Status field and the price is effective currently, all business units that match the setID/item combination and that have the Business Unit Update

Price check box selected on the Purchasing Business Unit Attributes page will have the new price applied.

When the price is updated, the value in the BU Price Update Status field on the Vendor's UOM and

Pricing Information page becomes Updated by default.

If necessary, the UOM and currency of the item/vendor price are converted from the vendor UOM and currency code to the standard UOM and currency code located on the Purchasing Attributes -

Purchasing Attributes page.

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Defining Purchasing Item Information Chapter 4

Any future effective-dated prices will take effect when the Price Update process has run on or after the effective date.

Note. To convert the item/vendor UOM to the item's standard UOM, the system uses the vendor override

conversion factor (if one exists). When no vendor override exists, the conversion factor for the Inventory

Item UOM setup process is used (INV_ITEM_UOM). If that conversion rate does not exist, the Units of

Measure page is used to determine the conversion factor. If no row is on the Units of Measure page that coincides with the item/vendor UOM (from UOM) and the item standard UOM (to UOM), an error message appears.

Note. To convert the item/vendor currency to the item's standard currency, the system uses the

CUR_RT_TBL record to determine the conversion factor. If no row on this record coincides with the item/vendor currency code (from currency code) and the item standard currency code (to currency code), an error message appears.

Using Standard Price and Business Unit Price Batch Updating

To update standard prices with data entered using the Item Loader:

1. Select the items that you want to update in the Item Loader.

a. Access the Item Loader page.

b. In the Item Load Type field, select Item Pricelist.

This processes item data that is staged with the Item Price List EIP, ITEM_PRICELIST_LOAD.

2. Select Update Standard Price to update the item standard price when a currently effective item/vendor

UOM price record is loaded and set the Standard Price Update Status field to To Be Upd for the future effective-dated records.

3. Select Update Business Unit Price to update business unit standard prices when a currently effective item/vendor UOM price record is loaded, and set the BU Price Update status to To Be Upd for the future effective-dated records.

To update business unit prices, you must also select the Update Business Unit Price check box for all items on the Purchasing Business Unit Attributes page.

4. Mark items on the Purchasing Business Unit Attributes page for standard price updating at the business unit level.

Select the Update Business Unit Price check box and click the OK button to save the changes.

When you are updating with prices loaded using the Item Loader, this step enables business units that match the setID/item combination to have the new price applied.

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Chapter 4 Defining Purchasing Item Information

5. For any future effective-dated prices, run the Price Update process on or after the effective dates.

a. Access the Price Update page.

b. Use the page controls to select criteria for the price updates.

The Price Update process scans the Item/Vendor tables for dates that have become effective and calculates the new standard price based on the price entered for that effective date on the item/vendor

UOM price entered with the Item Loader.

See Also

PeopleSoft Enterprise Managing Items 9.1 PeopleBook, "Loading Items"

Running the Price Update Process

Access the Update PO Price page (Items, Define Items and Attributes, Update PO Price).

Update PO Price page

You can use the filter controls on this page to limit the prices to be updated.

Date Range

As of Date

Select to process prices that are currently effective.

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Date Range

Chapter 4

Select to process prices that are in effect within the range that you specify in the

Date From/Date To fields.

Selecting Vendors Based on Item Ship To and Item Vendor

Locations

To define item ship to locations, use the Item ShipTo Locations component (ITM_SHIPTO_VNDR). Use the

ITM_SHIPTO_VNDR_CI component interface to load data into the staging tables for this component.

This section discusses how to define priority vendors for specific item and ship to location combinations. For more information about defining priority vendors for specific item and vendor location combinations, see the

"Using Purchase Order Sourcing" chapter. The pages are similar.

See Chapter 29, "Using Purchase Order Sourcing," Sourcing by Region, page 833.

Note. The PO Calculations process selects a vendor for an item/ship to location combination based on the

definition on this page (if the Override Suggested Vendor option is selected on the Sourcing Controls page).

Pages Used to Select Vendors Based on Item Ship To and Item Vendor

Locations

Page Name

Item Ship To Locations

Item Vendor by Region

Definition Name

ITM_SHIPTO_VNDR

ITM_REGION_VNDR

Navigation

Items, Define Items and

Attributes, Item Ship To

Locations

Items, Define Items and

Attributes, Item Ship To

Locations

Usage

Set up a prioritized list of vendors and vendor locations for a particular item and ship to location combination.

Define vendor priority and vendor location by region.

See Chapter 29, "Using

Purchase Order Sourcing,"

Sourcing by Region, page

833.

Defining Priority Vendors by Item Ship To Location

Access the Item Ship To Locations page (Items, Define Items and Attributes, Item Ship To Locations).

SetID and Ship To

Region Code

Select each shipping location that you're defining for the item. Ship to location codes are established on the Ship To Locations page.

Select a region code to associate to this ship to location.

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Chapter 4 Defining Purchasing Item Information

Include in Planning

Select to enable purchase options to be created in PeopleSoft Supply Planning for the PeopleSoft Inventory business unit related to this ship to location.

The purchase option then enables the creation of new purchase orders through

PeopleSoft Supply Planning for this PeopleSoft Inventory business unit. If this check box is not selected at the item and ship to level, it will not be available at the item ship to vendor level in the List of Vendors grid box.

List of Vendors

Vendor SetID

Priority

Vendor

Location

Ship Via

Lead Time

Lead Time Option

Include in Planning

Select a vendor setID. You cannot select a setID value and vendor that already exists in another row when the record definition does not allow duplicate entries.

Displays the priority value for the vendor setID and vendor combination with 1 being the highest priority.

Select a vendor. Available vendors are those for which item vendor relationships have been established on the Purchasing Attributes - Item Vendor page.

Select the vendor location.

Select the shipping method for this item vendor.

Enter the lead time for shipping to the item ship to location. This lead time accommodates multiple sites receiving goods from the same vendor location where each location requires its own lead time. The lead time defined at this level with the lead time option of Use will be the first level default value. If a value is not specified at this level, the system checks the item vendor by region.

Select the lead time option that you want to use at this item/ship to level. When vendors are assigned to requisitions in purchasing, the purchasing system checks a hierarchy to find the highest priority vendors. First, it checks for vendor priorities based on the item/ship to location. Next, it checks vendor priorities based on the item/region. And, finally it checks vendor priorities based on the item. PeopleSoft Supply Planning uses this feature, for example, if a purchase option does not have adequate lead time, the Supply Planning can go to the next prioritized option to determine whether it can use that option to meet the demand.

Select Default to use the next level lead time (item/region). Select Use to use the lead time defined at this level. If you do not specify a value for use at the first two levels, the system checks the item vendor followed by the purchase item.

Select to enable purchase options to be created in PeopleSoft Supply Planning for the PeopleSoft Inventory business unit related to this ship to location.

The purchase option then enables the creation of new purchase orders through

PeopleSoft Supply Planning for this PeopleSoft Inventory business unit. If this check box is not selected at the item/ship to level, it will not be available at the item ship to vendor level in the List of Vendors grid box.

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See Also

Chapter 4, "Defining Purchasing Item Information," Defining Attributes and Priorities for Purchasing Item

Vendor Relationships, page 86

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Maintaining Vendor

Information," Defining Vendor Locations

Creating Purchasing Kits

To define purchasing kits, use the Purchasing Kit component (ITM_CONFIG_TBL).

This section provides an overview of purchasing kits and lists the page used to create purchasing kits.

Understanding Purchasing Kits

A purchasing kit is a set of components that comprise two or more items. Purchasing kits contain items and quantities that are often ordered together.

When you enter a requisition or purchase order, you can order by purchasing kit ID to capture all items and quantities in the kit instead of entering each item and quantity separately.

When you enter a purchasing kit ID on a transaction line, the system creates a separate line for each of the kit's component items. The quantity of each line item is by default the quantity of that item per kit multiplied by the number of kits that you order. For example, if a kit includes one CD-ROM drive and two speakers and you order two kits, the system generates a line for the CD-ROM drive with a quantity of two and a line for the speakers with a quantity of four.

The account and alternate account that you define on the purchasing kit definition appears on the requisition distribution line when you associate a purchasing kit with a requisition.

Page Used to Create Purchasing Kits

Page Name

Purchasing Kit Definition

Definition Name

PURCH_KIT_TBL

Navigation

Items, Define Items and

Attributes, Purchasing Kit

Definition

Usage

Define purchasing kits.

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Chapter 5

Defining Miscellaneous Charges and

Landed Costs

This chapter provides an overview of miscellaneous charges and discusses how to define miscellaneous charge defaults.

Understanding Miscellaneous Charges

You can add miscellaneous charges to a purchase order in addition to sales and use taxes and value-added taxes (VAT). Miscellaneous charges can include freight, set up, insurance, and a variety of other costs incurred to deliver purchased goods to a location. Designating the charge as a "landed cost component" also enables you to incorporate the additional cost into the item's inventory value.

If you have PeopleSoft Inventory and PeopleSoft Cost Management installed, the landed cost charges may be defined as additional costs, beyond the merchandise value of the item. Depending on the costing method defined for the inventory item, the values associated with the additional costs are used to value inventory transactions or treated as variances against the item's standard cost. Comparisons of estimated and actual landed costs are provided through PeopleSoft Cost Management reports.

If you do not have PeopleSoft Cost Management installed, you can still define and use miscellaneous charges that are added to the purchase orders. You can set up PeopleSoft Purchasing to automatically calculate miscellaneous charges based on items, item and vendor combinations, and other criteria. A calculation method is assigned to each miscellaneous charge, and an allocation method is assigned to each component.

Alternatively, you can manually add miscellaneous charges on the purchase order.

To use miscellaneous charges and landed costs in PeopleSoft Purchasing, set up miscellaneous charges on the

Misc Charge/Landed Cost Defn page.

Optionally, you can use the Misc Chrg/Landed Cost Template page to define templates that group several miscellaneous charges. These templates can be associated with an item, category, purchase order, or purchase order schedule. Receipt lines are assigned the estimated costs of their associated purchase order schedule.

Once you have created miscellaneous charges and miscellaneous charge templates, you can assign them to purchase orders on the Header - Miscellaneous Charges page. You can also assign miscellaneous charges and templates to items and categories using the Miscellaneous Charges - Miscellaneous page.

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Defining Miscellaneous Charges and Landed Costs Chapter 5

See Also

Chapter 28, "Creating Purchase Orders Online," Applying Miscellaneous Charges To Purchase Order Lines, page 737

Chapter 4, "Defining Purchasing Item Information," Capturing Item Miscellaneous Charges, page 99

Chapter 4, "Defining Purchasing Item Information," Assigning Miscellaneous Charges and Templates to

Items and Categories, page 99

PeopleSoft Enterprise Cost Management 9.1 PeopleBook, "PeopleSoft Enterprise Cost Management Reports"

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Defining Miscellaneous Charges and Landed Costs

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Defining Miscellaneous Charge and Landed Cost Templates

Defining Miscellaneous Charge Defaults

To populate the purchase orders with the correct miscellaneous charge codes or landed cost templates, you must design a series of parameter combinations. When you enter a purchase order that matches the combination of parameters that you defined, the assigned charge code or template is used.

You can set up default miscellaneous charges that are automatically calculated based on the following combinations, where level one overrides level two, and so on:

Level

1

Miscellaneous Charge Hierarchy Criteria

Item, vendor, business unit, and ship to location.

(INV_ITEM_ID, VENDOR_ID, BUSINESS_UNIT, and SHIPTO_ID)

2

3

4

5

Item, vendor, and business unit.

(INV_ITEM_ID, VENDOR_ID, and BUSINESS_UNIT; and no SHIPTO_ID)

Item and vendor.

(INV_ITEM_ID and VENDOR_ID; and no BUSINESS_UNIT nor SHIPTO_ID)

Item.

(INV_ITEM_ID; and no VENDOR_ID, BUSINESS_UNIT, nor SHIPTO_ID)

Category, vendor, business unit, and ship to location.

(CATEGORY_ID, VENDOR_ID, BUSINESS_UNIT, and SHIPTO_ID; and no

INV_ITEM_ID)

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Chapter 5 Defining Miscellaneous Charges and Landed Costs

Level

6

7

8

Miscellaneous Charge Hierarchy Criteria

Category, vendor, and business unit.

(CATEGORY_ID, VENDOR_ID, and BUSINESS_UNIT; and no INV_ITEM_ID nor

SHIPTO_ID)

Category and vendor.

(CATEGORY_ID and VENDOR_ID; and no INV_ITEM_ID, SHIPTO_ID, nor

BUSINESS_UNIT)

Category.

(CATEGORY_ID; and no INV_ITEM_ID, VENDOR_ID, BUSINESS_UNIT, nor

SHIPTO_ID)

For example, you can set up miscellaneous charges that are automatically calculated on the purchase order when a certain item is ordered from a particular vendor, for a particular business unit, and a specific ship to location of the business unit. You can also set up a miscellaneous charge that is automatically calculated for a particular item.

Only one Miscellaneous Charges - Miscellaneous page combination is used. The higher level overrides the lower level. For example, suppose that you defined miscellaneous charges for an item (level 4), and also for the category (level 8) to which the item belongs, only the miscellaneous charges that you defined for the item are used. The miscellaneous charges that you defined for the category are only used for items that do not have miscellaneous charges specifically defined.

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Chapter 6

Using Workflow

This chapter provides an overview of PeopleSoft Purchasing workflow and discusses how to:

Set up the approval framework for PeopleSoft Purchasing.

Set up the PeopleTools workflow technology for PeopleSoft Purchasing.

Issue requisition sourcing workflow notifications.

Issue purchase order cancellation workflow notifications.

Issue contract expiration and exceed maximum workflow notifications.

Use purchase order acknowledgement alert workflow notifications.

Use Item Loader exception workflow notifications.

Use rebate manager workflow notifications.

Use receipt quantity change workflow notifications.

Use settlement manager workflow notifications.

Understanding PeopleSoft Purchasing Workflow

Many daily tasks are part of a larger process that involves several steps and people working together. The term workflow refers to this process, which could encompass, for example; approving a purchase order or notifying a manager of an exception. To facilitate this type of multiuser process, PeopleSoft can automatically trigger workflow notifications to inform the next person in the process of work awaiting them.

Use PeopleSoft workflows to:

Automate the information flow.

Enforce business process rules.

Combine the tasks of several users into a business process.

PeopleSoft offers two types of workflow:

1. PeopleTools Workflow Technology documented in the Enterprise PeopleTools PeopleBook: Workflow

Technology. This method is used to approve transactions and generate workflow notifications of various events. To setup this workflow, users must possess technical skills in PeopleSoft PeopleTools to create and maintain workflow using PeopleSoft Application Designer, PeopleCode, and Workflow

Administrator.

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Using Workflow Chapter 6

2. PeopleSoft Approval Framework documented in the PeopleSoft Enterprise FSCM 9.1 PeopleBook:

Approval Framework. This method is used to approve transactions. The approval framework requires less technical skills than the PeopleTools workflow technology. For example, all of the steps in approval framework are defined by means of PeopleSoft pages rather than the underlying PeopleSoft PeopleCode, so functional users can design and maintain workflow using these online PeopleSoft pages without technical developers having to create workflow rules. In addition, the approval framework enables you to approve transactions at the line level and use several additional approval features.

Within PeopleSoft Purchasing, the PeopleTools workflow technology is used for all workflow notifications.

Purchase orders and requisitions can be approved using the approval process within the PeopleTools workflow technology or the approval framework. This choice of workflow method is made at the business unit level. PeopleSoft eProcurement uses the approval framework to approve requisitions and purchase orders.

Setting Up the Approval Framework for PeopleSoft Purchasing

This section discusses how to:

Set up the Approval Framework in PeopleSoft Purchasing.

Set up Email Approvals for PeopleSoft Purchasing.

Understanding the Approval Framework Setup Steps

Within PeopleSoft Purchasing, the approval of requisitions and purchase orders can be handled by the approval framework. Most of the work has already been done for you and is delivered with your PeopleSoft system. You need to activate the workflow and adjust the approval setup to identify your individual users, templates, and servers. This chapter discusses the setup of requisition and purchase order approval within

PeopleSoft Purchasing.

After a requisition or purchase order is created, the system routes the transaction to an approver. The approver can view and take action in two ways: using their worklist or navigating directly to an approvals page. The approver can preview, in a graphical format, the path that the transaction approval will take, view who has already approved the transaction, and see any comments that previous approvers have entered.

While the system awaits approval action, the approval framework maintains the overall state of the requisition or purchase order, invokes routings, and interacts with the application classes.

The approval framework enables you to perform a number of approval tasks, including:

Approving a transaction (requisition or purchase order) at the header or line-level. You can approve the entire transaction at the header level or approve individual lines at the line level.

Performing mass approvals. Using the Manage Requisition Approvals page or the Approve Purchase

Orders page, you can select multiple transactions to be approved or denied at one time. Use the Mark All icons to perform mass approval.

Denying a transaction. Once a transaction is denied, the workflow stops.

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Chapter 6 Using Workflow

Hold a transaction or transaction line. The hold action enables an approver to stop the approval process and research an issue. When hold is used, the system automatically adds the person who created the transaction as an ad hoc reviewer so that a comment can be sent. Once the transaction is placed on hold, it cannot move to the next approval step until the approver removes the hold.

Pushing back a transaction or transaction line. A pushback returns the transaction to the previous approval step. The meaning of push back is that the approver is questioning the prior step's approval and is requesting clarification.

Adding or removing ad hoc approvers or reviewers. During the approval process, approvers can add other approvers or reviewers to the current or a later stage of the approval process. For example, if a buyer wants input from an inventory analyst, she can add the analyst as an approver. This action is called ad hoc approval, and it applies only to the approval instance in which the addition occurs and does not affect the underlying process definition used for other requests.

Reviewing an online transaction that shows the layout of the printed version. The transaction opens up as a second window and can be printed. The Oracle XML Publisher is used to generate this report, and you can customize it.

Making comments to be viewed by other approvers or reviewers.

Approving a transaction that has been changed. When a transaction is changed during or after the approval process, the approval framework can require re-approval of the changes using the same approval component as the original transaction.

Approving or denying a transaction using email rather than PeopleSoft pages.

Self approval of transactions. This feature can be restricted or turned off.

Note. Users with the system administrator role can self approve transactions, regardless of the transaction

amount.

Alternate approvers who are assigned to receive emails and Worklist notifications for the primary approver when the primary approver is not available.

For a complete list of approval features, see the Understanding Approval Features section of the

Understanding the Approval Framework chapter of the PeopleSoft Enterprise FSCM 9.1 PeopleBook:

Approval Framework.

During the approval process these actions take place:

The system notifies approvers and reviewers that there is a pending transaction (requisition or purchase order) that needs their attention.

Approvers and reviewers access the transaction details, provide comments, and take action (approve, deny, or push back) for the requisition or purchase order. In addition, approvers and reviewers can be granted the authority to add additional ad hoc approvers or reviewers to the workflow for a pending transaction.

The system checks for additional routings in the same routing path.

If all steps have been completed for the stage, then the next step is started in the next stage. If there are multiple routing paths, the system routes them in parallel.

Once all approvers of a transaction have approved it, the approval framework notifies the PeopleSoft

Purchasing application. The requisition or purchase order is then ready for the next step.

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Using Workflow

See PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework.

Chapter 6

Setting Up the Approval Framework for PeopleSoft Purchasing

Complete information about the setup and use of the approval framework is located in the PeopleSoft

Enterprise FSCM 9.1 PeopleBook: Approval Framework.

Use the following steps to set up the requisition and purchase order approval process within PeopleSoft

Purchasing:

Set Up the User Profile Component

For the users with PeopleSoft Purchasing:

Use the User Profile-Workflow page to identify the supervisor who should approve the user's new requisitions or purchase orders.

Use the User Profile-Roles page to enter the roles of the user. A role is a class of users who perform the same type of work, such as a requestor, buyer, or manager. A role describes how people fit into workflow.

Roles are defined under PeopleTools, Security, Permissions & Roles, Roles.

See "Defining Users for Approval Framework," PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval

Framework.

Define User Lists

Use the User List Definition page to define lists of users who can approve transactions. These lists are used with steps in the approval process. The PeopleSoft product delivers a set of default user list roles corresponding to the roles within an organization. For PeopleSoft Purchasing, default user lists include buyers, buyers for hardware, buyers for Software, line level approvers, department managers, and project managers.

See "Defining User List," PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework.

Grant eProcurement Role Actions to the Appropriate User Roles

If your environment includes PeopleSoft eProcurement as well as PeopleSoft Purchasing and the approval framework is used in PeopleSoft Purchasing, then the following eProcurement role actions enable approval features for requisitions in PeopleSoft Purchasing:

ALLOWHOLD: Displays the Hold button on requisition approval pages.

ALLOW_ADHOC_ONSUBMIT : Allows for adding or removing ad hoc approvers after you submit the requisition.

ALLOW_ADHOC_ONPREVW : Enables users to add or remove ad hoc approvers on requisition preview.

CANCHANGEALL: Enables a requester to change any field on the requisition without restarting the approval process while the requisition is in a pending approved status.

CANCHANGEDISTRIB: Enables the requester to change any field on the requisition distribution without restarting the approval process while the requisition is in a pending approved status.

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Chapter 6 Using Workflow

CANCHANGEHEADER: Enables the requester to change any field on the requisition header without restarting the approval process while the requisition is in a pending approved status.

CANCHANGELINE: Enables the requester to change any field on the requisition line, with the exception of quantity and price, without restarting the approval process while the requisition is in a pending approved status.

CANCHANGESCHEDULE: Enables the requester to change any field on the requisition schedule without restarting the approval process while the requisition is in a pending approved status.

MASS_APPROVER: Enables a requester to approve multiple requisitions at one time. The Approve

Requisitions component is where the actions are enabled.

WF_EXPAND_APPROVER:Enables users to always see the Review/Edit Approvers section in the eProcurement Approval page when it is expanded.

If PeopleSoft eProcurement is not installed in your environment, then the eProcurement role actions do not need to be setup.

See PeopleSoft Enterprise eProcurement 9.1 PeopleBook, "Determining Technical Implementation Options,"

Attaching Role Actions to User Roles.

Establish the Requisition Status at Save

Use the Requester Setup page to establish the status of a requisition when it is saved. The requisition status of

Pending is immediately submitted to workflow when the new requisition is saved, however, the status of

Open is not submitted to workflow. An open requisition cannot be viewed on the approver's worklist, in the

Manage Requisition Approvals page or the Requisition Approval page.

In addition, you must authorize the user to approve requisitions by selecting the Approval check box in the

Allowed Requisition Actions group box of the User Preferences: Procurement - Requisition Authorizations page.

Establish the Purchase Order Status at Save

Use the Buyer Setup page to establish the status of a purchase order when it is saved. The purchase order status of Pending is immediately submitted to workflow when the new PO is saved, however, the status of

Open is not submitted to workflow. An open purchase order cannot be viewed on the approver's worklist or in the Approve Purchase Orders page.

In addition, you must authorize the user to approve purchase orders by selecting the Approval check box in the Allowed Purchase Order Actions group box of the User Preferences: Procurement - Purchase Orders

Authorizations page.

Create Change Templates

Define change templates for requisitions and purchase orders to identify when a field change should initiate the re-approval of the transaction by the approval framework.

To create a change template for requisitions, use the change template type of Requisition. When you first create the change template, the system defaults the re-approval workflow trigger for the following fields in both the REQ_LINE and REQ_LINE_SHIP records:

1. MERCHANDISE_AMT

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2. PRICE_REQ

3. QTY_REQ

Once you have created the change template for requisitions, attach the template to the Purchasing business unit using the Purchasing Definition-Req Change Options page. The change template entered in this page are shared by the same business unit across the PeopleSoft Purchasing, eProcurement, and Services Procurement applications. If no requisition change template is defined for the business unit, then any field changes start the re-approval of the requisition line using the approval framework feature.

To create a change template for purchase orders, use the change template type of Purchase Order. When you first create the change template, the system defaults the re-approval workflow trigger for the following fields in the PO_LINE_SHIP record:

1. MERCHANDISE_AMT

2. PRICE_PO

3. QTY_PO

After you create the change template for purchase orders, attach the template to the Purchasing business unit using the Purchasing Definition-PO Change Options page. The change template entered in this page are shared by the same business unit across the PeopleSoft Purchasing, eProcurement, and Services Procurement applications.

See PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Creating Change Templates.

See Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Establishing

Change Options and Approval Rules, page 36.

Review the Approval Transaction Registry

The approval transaction registry is the interface application used to register an application with the approval framework. You use the Register Transactions page to link the components, event handler, records, and classes that you created into the approval process for an application transaction, such as a requisition or purchase order. The main records and components that make up the transaction are registered, along with the approval transaction on which to base the approval process definition.

Any PeopleSoft delivered approvals already have the Approval Transaction Registry populated. No additional configuration is typically needed. This includes the transaction registry for requisition approval (process ID

Requisition) and for purchase order approval (process ID PurchaseOrder).

The transaction registry with the process ID of Requisition uses the cross-reference table PV_REQ_AW and the default approval component of PV_REQ_APPROVAL. Keep in mind that a changed requisition uses the same workflow setup as the original requisition; it is a re-approval of the requisition. PeopleSoft Purchasing and PeopleSoft eProcurement share the same setup data, even though the objects begin with PV.

The transaction registry with the process ID of PurchaseOrder uses the cross-reference table PO_AW and the default approval component of PO_APPROVAL.

See "Defining the Approval Transaction Registry," PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval

Framework.

122 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 6 Using Workflow

Configure the Approval Transactions

Use the Configure Transactions page to select and define elements that determine what triggers a notification, who receives the notification, and the content of the notification. Notifications are mapped to work with the approval transaction registry and include menus and components and SQL definitions.

For the process ID of Requisition, use the approval component of PV_REQ_APPROVAL.

For the process ID of PurchaseOrder, use the approval component of PO_APPROVAL.

See "Configuring Approval Transactions," PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval

Framework.

Set Up Process Definitions

Use the Setup Process Definition component to define an approval definition process. This definition is made up of the stages, paths, steps, and criteria that build a workflow.

See "Setting Up Approval Framework Process Definitions," PeopleSoft Enterprise FSCM 9.1 PeopleBook:

Approval Framework.

Authorize Approvers and Roles for Dynamic Approval

PeopleSoft applications use workflow to configure approval paths in two manners. The first configuration is to define every approval in step-by-step fashion. The second manner is to create dynamic approvals. Use the

Approval Authorization component to authorize roles and approvers for dynamic paths.

See "Defining Dynamic Approvals," PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework.

Set Up the Approval User Monitor

The approval monitor gives administrators a view into all approvals to which they have access, as well as the ability to take necessary actions on pending approvals. Each process ID can be configured using the Approval

Monitor Configuration page (Enterprise Components, Approvals, Approvals, Monitor Configuration).

Once configured, the Monitor Approvals page can be accessed from Enterprise Components, Approvals,

Approvals, Monitor Approvals.

See "Using the Approval Monitor," PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework.

See PeopleSoft Enterprise eProcurement 9.1 PeopleBook, "Determining Technical Implementation Options,"

Setting Up Event Notifications and Escalations.

Define Ad Hoc Notification Templates

Use the Generic Template Definition page to establish a common format for all ad hoc notifications. This provides functionality similar to the Approval Monitor but not limited to the administrators. Add templates for:

PO Approval

PO Approved

PO Cancelled

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Using Workflow Chapter 6

PO Denied

PO Escalation

PO Information Added

PO Information Requested

PO Line Approval

PO Line Approved

PO Line Information Added

PO Line Information Requested

PO Line Pushback

PO Line Reviewed

PO Pushback

PO Review

Similar templates exist for requisitions.

See "Defining Notification Templates and Users for Approval Framework," PeopleSoft Enterprise FSCM 9.1

PeopleBook: Approval Framework.

Set Up Email Approvals for PeopleSoft Purchasing

The email collaboration feature enables applications to send, receive, and process emails with interactive content. You can use it to send email approvals for requisitions or purchase orders. You can send an HTML form to a user, and that user does not need to log in to his or her system to perform tasks.

Set Up the Notification and Escalation Manager

The Notification and Escalation Manager (NEM) is a mechanism used to process notifications and escalations on a specified interval. For example, escalations are used when an approver has not responded within a specified time period to a transaction that is pending approval. You can specify the time period (timeout) and you can specify alternate approvers to whom to notify and escalate the approval for further action. Timeout options are defined on the Approval Path Definition page.

To set up the NEM, use the following pages: Event Types, Setup Event, Event Status, and Schedule JobSet

Definitions.

See "Using the Notification and Escalation Manager," PeopleSoft Enterprise FSCM 9.1 PeopleBook:

Approval Framework.

124 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 6 Using Workflow

Determining the Maximum Rows for the Approval Monitor and Other Pages

On the Installation Options- Purchasing page, enter the maximum number of lines to be displayed at one time in the Review/Edit Approvers section of the workflow approval components. Additional lines can be accessed by using the chunking options at the top of the section, including; using the Next Item button, Last Item button, or entering a range of lines and clicking the Retrieve button. Use the PO Approval Monitor field to define the maximum number of purchase order lines. Use the Requisition Approval Monitor field to define the maximum number of requisition lines. The default value for these fields is 5.

See PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Setting Installation Options for

PeopleSoft Applications," Defining Purchasing Installation Options.

Activate Workflow

Activate the approval framework for requisitions and purchase orders by using the:

Purchasing Definition-PO Change Options page. Use the Purchasing business unit to activate the approval framework for purchase orders in PeopleSoft Purchasing. Select the PO Workflow Approval Required check box to enable purchase order approval within the business unit. Select this check box to replace the

PeopleTools workflow technology (virtual approver) in PeopleSoft Purchasing with the approval framework. If you enable the approval framework for the Purchasing business unit, then it is enabled for eProcurement also. Once you have selected the PO Workflow Approval Required check box, use the PO

Create Exceptions group box and PO Change Request Exceptions group box to identify sources that do not require approval. The Change Template entered on this page is used by PeopleSoft Purchasing, eProcurement, and Services Procurement to determine which field changes to the original purchase order will launch the approval framework for PO re-approval. Select the Resubmit Workflow for Quantity and

Price Decrease check box to require approval of a PO changes with a decrease in item quantity or price.

Purchasing Definition-Req Change Options page. Use the Purchasing business unit to turn on the approval framework for requisitions in both PeopleSoft Purchasing and PeopleSoft eProcurement. Select the Workflow Approval Required check box to enable requisition approval within the business unit. By selecting this check box the PeopleTools workflow technology (virtual approver) in PeopleSoft

Purchasing is replaced by the approval framework. If you enable the approval framework for the

Purchasing business unit, then it is enabled for eProcurement also. The Change Template entered on this page is used by PeopleSoft Purchasing, eProcurement, and Services Procurement to determine which field changes to the original requisition will launch the approval framework for requisition re-approval.. Select the Resubmit Workflow for Quantity and Price Decrease check box to require approval of a requisition changes with a decrease in item quantity or price.

See Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Establishing

Change Options and Approval Rules, page 36.

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Using Workflow Chapter 6

Pages Used to Set Up Approval Framework in PeopleSoft Purchasing

Page Name

User Profiles - Roles

User Profiles - Workflow USER_WORKFLOW

User List Definition

Requester Setup

User Preferences:

Procurement - Requisition

Authorizations

OPR_REQ_AUTH

Buyer Setup

User Preferences:

Procurement - Purchase

Order Authorizations

Definition Name

USER_ROLES

PTAF_USER_LIST

REQUESTOR_TBL

BUYER_TBL

OPR_PO_AUTH

Navigation Usage

PeopleTools, Security, User

Profiles, User Profiles

Select the Roles tab.

Attach workflow roles to users.

See "Defining Users for

Approval," PeopleSoft

Enterprise FSCM 9.1

PeopleBook: Approval

Framework.

PeopleTools, Security, User

Profiles, User Profiles

Define supervisors.

See "Defining Users for

Approval," PeopleSoft

Enterprise FSCM 9.1

PeopleBook: Approval

Framework.

Enterprise Components,

Approvals, Approvals, User

List Setup

Define user-list definitions.

See "Defining User Lists,"

PeopleSoft Enterprise

FSCM 9.1 PeopleBook:

Approval Framework.

Set Up Financials/Supply

Chain, Product Related,

Procurement Options,

Purchasing, Requester

Setup

Establish default information for requesters.

Set Up Financials/Supply

Chain, Common

Definitions, User

Preferences, Define User

Preferences, Procurement.

Click the Requisition

Authorizations link on the

Procurement page.

Authorize users to initiate and update requisitions for applicable requesters.

Enable users to approve requisitions. Define a user's requisition processing authority in relation to applicable requesters.

Set Up Financials/Supply

Chain, Product Related,

Procurement Options,

Purchasing, Buyer Setup

Establish default information for buyers.

Set Up Financials/Supply

Chain, Common

Definitions, User

Preferences, Define User

Preferences, Procurement.

Click the Purchase Order

Authorizations link on the

Procurement page.

Authorize users to initiate and update purchase orders for applicable buyers.

Enable users to approve purchase orders. Define a user's purchase order processing authority.

126 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 6 Using Workflow

Page Name

Change Template

Purchasing Definition-PO

Change Options

Purchasing Definition-Req

Change Options

Register Transactions

Configure Transactions

Setup Process Definitions

Approval Authorization

Approval Monitor

Configuration

Definition Name

CHNG_ORD_TEMPLATE

BUS_UNIT_PO_APPR

BUS_UNIT_REQ_APPR

EOAW_TXN

EOAW_TXN_NOTIFY

EOAW_PRCS_MAIN

EOAW_AUTH

EOAW_MONDIS_CONFIG

Navigation

Set Up Financials/Supply

Chain, Product Related,

Procurement Options,

Purchasing, Change

Template

Usage

Identify the fields on a requisition, purchase order, or contract that can initiate the following actions when the field is changed. For a requisition identify the field changes that create change tracked records, require approval by the approval framework, and creation of a change request. For a purchase order identify the field changes that create change tracked records and require approval by the approval framework.

Set Up Financials/Supply

Chain, Business Unit

Related, Purchasing,

Purchasing Definition, PO

Change Options

Define purchase order approval requirements for each business unit.

Set Up Financials/Supply

Chain, Business Unit

Related, Purchasing,

Purchasing Definition, Req

Change Options

Define requisition approval requirements for each business unit.

Enterprise Components,

Approvals, Approvals,

Transaction Registry

Register an application with the approval framework.

Enterprise Components,

Approvals, Approvals,

Transaction Configuration

Use the Configuration

Transactions page to configure how the system uses the particular implementation of approval triggers.

Enterprise Components,

Approvals, Approvals,

Approval Process Setup

Define workflow approval process stages.

Enterprise Components,

Approvals, Approvals,

Authorize Approvers

Enterprise Components,

Approvals, Approvals,

Monitor Configuration

Authorize roles and approvers for dynamic paths.

Configure the approval monitor.

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Using Workflow Chapter 6

Page Name

Monitor Approvals

Generic Template

Definition

Event Types

Setup Event

Event Status

Schedule JobSet Definitions

Installation Options-

Purchasing

Definition Name

EOAW_ADM_MON_SRC

WL_TEMPLATE_GEN

EOAW_NEM_EVENTS

EOAW_NEM_SETUP

EOAW_NEM_STATUS

SCHDLDEFN

INSTALLATION_PO

Navigation

Enterprise Components,

Approvals, Approvals,

Monitor Approvals

Usage

View into all approvals to which you have access, as well as take necessary actions on pending approvals.

PeopleTools, Workflow,

Notifications, Generic

Templates

Use the Generic Template

Definition page to establish a common format for all ad hoc notifications.

Enterprise Components,

Approvals, Notification and

Escalations , Events

Associate events to a server.

Enterprise Components,

Approvals, Notification and

Escalations , Notifications and Escalations

Set up an escalation event and define the evaluation and action details.

Enterprise Components,

Approvals, Notification and

Escalations, Status

Check status of notification.

PeopleTools, Process

Scheduler, Schedule JobSet

Definitions

Set up a NEM to define the job to run, and how often you want it to run.

Set Up Financials/Supply

Chain, Install, Installation

Options, Purchasing

Set up PeopleSoft

Purchasing installation options including the maximum number of lines to be displayed at one time in the Review/Edit

Approvers section of the workflow approval components.

Use the PO Approval

Monitor Max Rows field to define the maximum number of purchase order lines.

Use the Req Approval

Monitor Max Rows field to define the maximum number of requisition lines.

128 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 6 Using Workflow

Setting Up Email Approvals for PeopleSoft Purchasing

The email collaboration framework allows applications to send, receive, and process emails with interactive content. It can be used to send email approvals for requisitions or purchase orders. You can send an HTML form to a user, and they do not need to log into their system to perform tasks.

These steps describe the flow of email collaboration:

1. A system event triggers PeopleSoft PeopleCode, which creates a collaborative email and sends it to a user.

2. The user who receives the email takes appropriate action and clicks Submit.

3. The user's submission is sent to an email account that is designated for holding responses.

4. An application engine program runs on a configured interval, polling the repository for new emails. It processes the emails and publishes them as service operation messages.

5. The service operation runs, allowing the implementing application to process the data in a known and supported format.

To set up email approvals:

1. On the Register Transactions page, complete the Notification Options section to include email notifications. Be sure to select the Use Email Approvals check box. Update the Register Transactions page for the process IDs of Requisition and PurchaseOrder.

See "Defining the Approval Transaction Registry," PeopleSoft Enterprise FSCM 9.1 PeopleBook:

Approval Framework.

2. On the Configure Transactions page, complete the Notification Options section. Select the Sent Email

Approvals to All check box or add a user list in the Email Approval User List field. Update the Configure

Transactions page for the process IDs of Requisition and PurchaseOrder.

See "Configuring Approval Transactions," PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval

Framework.

3. Design the format of the email to be sent using the Form Element Designer page, Form Layout Designer page, and Field Mapping page within the Email Collaboration menu (Enterprise Components, Approvals,

Email Collaboration). For directions, see the Using Email Collaboration chapter of the Enterprise

Components: PeopleSoft Approval Framework 9.1 PeopleBook.

See "Using Email Collaboration," PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework.

4. Use the Node Properties page to modify the PT_EMC_GETMAIL node to enable email collaboration. For directions, see the Using Email Collaboration chapter of the Enterprise Components: PeopleSoft Approval

Framework 9.1 PeopleBook.

5. Set up the PO_EMAIL_PO_APPROVAL and PV_EMAIL_REQ_APPROVAL service operations within

PeopleSoft Integration Broker and Enterprise Components. The Purchase Order Approval

(PO_EMAIL_PO_APPROVAL) service operation is used for collaborative emails for purchase orders and the Requisition Approval (PV_EMAIL_REQ_APPROVAL) service operation is used for collaborative emails for requisitions. For directions in activating a service operation, see the

Implementing Integrations chapter of the PeopleSoft Enterprise Supply Chain Management Integration

9.1 PeopleBook.

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6. Schedule the PeopleSoft Application Engine program EOAWEMC to run on a regular basis. For directions, see the Using Email Collaboration chapter of the Enterprise Components: PeopleSoft Approval

Framework 9.1 PeopleBook.

PeopleSoft delivers service operations in PeopleSoft Integration Broker with a default status of Inactive. You must activate each service operation before attempting to send or receive data from a third-party source. Use the information in this table and refer to the setup instructions in the PeopleSoft Supply Chain Management

Integrations 9.1 PeopleBook, "Implementing Integrations" chapter, Setting Up Service Operations section.

Service Operation Direction and Type Handlers

EmailSubscription

Chunkin g

Available

?

Integrates

With

No External

XML

PO_EMAIL_PO_APPROVA

L

Inbound

Asynchronous

PV_EMAIL_REQ_APPROV

AL

Inbound

Asynchronous

EmailSubscription No External

XML

See Also

"Configuring Approval Transactions," PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework

Enterprise PeopleTools PeopleBook: Integration Broker

PeopleSoft Enterprise Supply Chain Management Integration 9.1 PeopleBook, "Implementing Integrations,"

Setting Up Service Operations

Setting Up PeopleTools Workflow Technology for PeopleSoft

Purchasing

This section discusses how to:

Set up approvals in PeopleTools Workflow Technology.

Set up EDX exception workflow.

Set up notification in PeopleTools Workflow Technology.

Understanding PeopleTools Workflow Technology Setup for PeopleSoft

Purchasing

Use PeopleSoft Application Designer and PeopleSoft Workflow Administrator to use the workflow processes that are delivered with PeopleSoft Purchasing. You can also use PeopleSoft Application Designer to design and build your own business processes, including workflow rules. You use PeopleSoft Workflow

Administrator to access, monitor, analyze, and control workflow in your organization.

130 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 6 Using Workflow

PeopleTools Workflow Technology can be used to:

Approve transactions. For example, PeopleTools Workflow Technology can route requisitions or purchase orders through the approval process to ensure that the transactions are approved before moving forward in the business process.

Send workflow notifications to managers, buyers, requesters, and other users about events and actions that are relevant to them. For example, PeopleTools Workflow Technology can notify the appropriate buyer when a POA is received that requires buyer approval before being processed.

Use PeopleSoft Application Designer to build the workflow business process for PeopleTools Workflow

Technology. The workflow process is based on rules, roles, and routings.

Rule Set Up

Rules determine which activities are required to process your business data. For example, you might implement a rule that says department managers must approve all requests for external classes.

You implement rules through workflow events, such as PeopleCode that evaluates a condition and triggers a notification (a routing) when appropriate.

Role and User Set Up

Users are the people who participate in one or more workflow processes. Users can be PeopleSoft users, as well as people and groups who don't have direct access to PeopleSoft applications, but rather send or receive data using workflow. For example, if your workflow delivers electronic order forms to vendors, your vendors are users.

When you build a workflow, you identify the users who perform each activity according to their roles in the organization and in the workflow. The process of approving a purchase order transaction, for example, may involve the roles of buyer, purchasing analyst, and manager. When the system routes a work item to the next activity in a business process, it forwards the item to the users who fill the role that is assigned to that activity.

In some cases, you may define multiple users who fill the role. In most cases, the system runs a query to find out who the appropriate users are for a given work item. You define users' roles when you assign user IDs.

Note. The content of this section is only part of what you need to know to map your business processes. Other

information that is common to many applications is located in the PeopleSoft Enterprise Application

Fundamentals 9.1 PeopleBook.

Route Controls Set Up

Route controls further specify which users that belong to a specific role are to receive a workflow item. For instance, you may have a role of manager, but not every manager in the system should receive every purchase order for approval. A particular manager may be responsible for a certain purchase order business unit.

Establish the business unit as a route control and assign specific business unit values to specific users. By doing this, you limit the routing of purchase orders from a particular business unit to those managers who should be reviewing those purchase orders.

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Using Workflow

See Also

Enterprise PeopleTools PeopleBook: Workflow Technology

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Getting Started With PeopleSoft

Enterprise Application Fundamentals"

Enterprise PeopleTools PeopleBook: Security Administration

Chapter 6

Setting Up Approvals in PeopleTools Workflow Technology

You can use PeopleSoft Workflow to automate the approval process for requisitions and purchase orders.

Depending on the configuration of the business unit, amount and ChartField approvals may be needed before the system changes the status of a requisition or purchase order from Pending Approval to Approved. While these approvals are independent of each other, they are set up similarly.

Changing the status on the requisition or purchase order approval table to In Process triggers the workflow approval process. Workflow searches for requisitions or purchase orders that require approval and moves those requests to the appropriate users for approval.

You can use either of the following methods to send requisitions and purchase orders into workflow:

Use the PeopleSoft Application Engine processes.

PeopleSoft Application Engine processes use queries to determine which requisitions and purchase orders are eligible for workflow routings and approvals. To be eligible, a requisition or purchase order must have a status of Pending Approval and the approval status on the requisition or purchase order approval table must be Initial. The requisition or purchase order approval table tracks the approval status.

For eligible requisitions and purchase orders, the PeopleSoft Application Engine processes sets statuses on the approval table to In Process, and the first worklist entries are created for the requisition and purchase order. The requisition or purchase order is now in workflow. The status remains as Pending

Approval, until the requisition or purchase order completes its workflow cycle and the status changes to

Approved.

Perform manual steps on the requisition and purchase order approval pages.

If the requisition or purchase order requires workflow approval, setting the requisition or purchase order status to Approved on these pages changes the status on the requisition or purchase order approval table to

In Process, which triggers workflow approval.

This requisition or purchase-order-in-process is an activity in the workflow process that must be approved before it can move to the next event in the process. After the requisition or purchase order is submitted, workflow verifies that you have the authority to approve the activity. If you don't have the authority, workflow notifies the approver at the next higher level that the activity needs approval and adds the activity to that approver's worklist or sends email notification. The status of the requisition or purchase order remains as

In Process. Workflow moves the activity up the hierarchy of approvers until the person with the proper authority approves the activity.

This diagram illustrates the use of workflow objects to define the approval workflow for purchase orders:

132 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 6 Using Workflow

Purchase order approval process workflow

Virtual Approver

PeopleSoft Purchasing uses a workflow model that is called Virtual Approver to handle the requisition and purchase order approval processes. Using the Virtual Approver model, you define approval rules in

PeopleSoft Application Designer and routings in PeopleSoft Workflow Administrator, instead of writing lines of PeopleCode.

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Using Workflow Chapter 6

When you define an approval process, the Virtual Approver determines transactions that need further approval and routes them to the appropriate approval user. Users enter transactions, as they always have, through a PeopleSoft application page. When an user saves the page, the Virtual Approver checks the approval rules that are defined through the Approval Rule Set to determine what kind of approval is necessary.

On purchase orders and requisitions, the approval transactions are the amount and ChartField approval transactions. If the current user has the authority to approve the transaction, the Virtual Approver sets the transaction status to Approved and doesn't route it using workflow.

Note. Even if you do not implement PeopleSoft Workflow at this time, the approval function is still defined

within the Workflow component. If workflow isn't being used, the approver manually accesses the approval pages and the approval rules are invoked when he or she saves the page.

The purchase order approval process workflow diagram illustrates a typical example of how you might use the Virtual Approver model to define approval processes. In the example, the system checks both the purchase order amount and the ChartField authorization.

If the system finds that the person who set the purchase order status to Pending Approval has authorization for both of those approval transactions, the purchase order is approved.

However, if the purchase order needs further approval, the system adds a transaction to the worklists or sends an email to the appropriate users, based on the rules that are set up in PeopleSoft Workflow Administrator.

The purchase order status changes to In Process until all approval actions are complete. The next user selects the worklist entry on the Worklist page to access the approval pages and recycles, approves, or denies the purchase order. If the user denies the purchase order, the system generates an email message and a worklist entry to notify the buyer that appears on the purchase order.

Setting Up Requisition Approvals

When you use the PeopleTools Workflow Technology, requisitions are approved using workflow roles, rules, and routings. To implement workflow approvals, define the roles, rules, and routings using the Workflow component. Your system is delivered with basic approval rules already established.

To set up requisition approvals:

1. Access the User Preferences - Procurement: Requisition Authorizations page.

To authorize a user to approve requisitions, select the Approval check box in the Allowed Requisition

Actions group box.

2. Access the Purchasing Definition - Req Approval Options page. a. If you want to use automatic approvals for the selected business unit, do not define any approval requirements on this page. b. If you want to use workflow approvals for the selected business unit, define your amount and

ChartField approval options.

3. Access the Requester Setup page.

In the Requisition Status group box, select either Open or Pending to determine the default status of requisitions once the selected requester saves them.

134 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 6 Using Workflow

Setting Up Purchase Order Approvals

When you use the PeopleTools Workflow Technology, the system approves purchase orders by using workflow roles, rules, and routings. To implement workflow approvals, define the roles, rules, and routings by using the Workflow component. PeopleSoft delivers a system that includes basic approval rules.

To set up purchase order approvals:

1. Access the User Preferences - Procurement: Purchase Order Authorizations page.

To authorize a user to approve purchase orders, select the Approval check box in the Allowed Purchase

Order Actions group box.

2. Access the Purchasing Definition - PO Approval Options page.

a. To use automatic approvals for the selected business unit, do not define any approval requirements on this page.

By leaving these options blank, you have chosen to use automatic approvals.

b. To use workflow approvals for the selected business unit, define the amount and ChartField approval options.

3. Access the Buyer Setup - Buyer Setup page.

In the Default PO Status group box, select either Open or Pending Approval/Approved to determine the default status of purchase orders once the selected buyer saves them.

See Also

Enterprise PeopleTools PeopleBook: Workflow Technology

Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Defining Purchase

Order Change Options and Approval Requirements, page 36

Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Defining Requisition

Change Options and Approval Requirements, page 43

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining User Preferences," Defining

Requisition User Authorizations

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Establishing Requesters and Defaults

Setting Up EDX Exception Workflow

When using inbound electronic data exchange (EDX) messages, it may be desirable for exception conditions to be noted and brought to the attention of various people within the purchasing and inventory management organizations. These require processes to notify the procurement and inventory management organizations and ensure that appropriate measures are taken to react to these conditions.

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Using Workflow Chapter 6

When loading Item Catalog EDX messages, possible exceptions include price changes outside of expected tolerances, unknown items, and other exceptions. Receiving these exceptions should trigger notification to personnel in the buying and inventory management organizations to review and approve the changes. This ensures vendor compliance with buying arrangements and identification of errors before transactions are processed.

When loading Purchase Order Acknowledgement EDX messages, exceptions such as rejecting the purchase order or changing it must be addressed by the buyer to determine whether the changes are acceptable or require any additional follow up.

When you receive inbound Purchase Order Acknowledgment (X.12 855) and Item Catalog (X.12 832) EDX messages that have exceptions, the system provides exception notifications to resources in the buying organization.

See Also

Chapter 6, "Using Workflow," Using Item Loader Exception Workflow Notifications, page 141

Chapter 6, "Using Workflow," Using Purchase Order Acknowledgement Alert Workflow Notifications, page

139

Setting Up Notification in PeopleTools Workflow Technology

In addition to requisition and PO approvals, you can use PeopleTools Workflow Technology to automate requester and buyer notification processes for requisitions and purchase orders. These notifications let the requesters and buyers know about the statuses of requisitions and purchase orders at key points in the purchasing business process.

Other processes in PeopleSoft Purchasing that use workflow notification include procurement card, RFQ, and contract processes. These notifications alert users about situations that they need to address. You can also receive notifications when the matching process fails.

You enable PeopleTools Workflow Technology notifications using PeopleSoft Application Designer by setting the status for each business event to active in the selected workflow business processes. This table lists workflow notification events that you can use in PeopleSoft Purchasing:

Workflow Notification Event

Notify the requester when a requisition line is sourced to a purchase order line through the

Create PO process.

Workflow Notification Type

Email

Business Process Name

REQ_SOURCED

Note. You must run this workflow manually from an online page.

See Chapter 6, "Using Workflow,"

Issuing Requisition Sourcing

Workflow Notifications, page 138.

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Workflow Notification Event Workflow Notification Type

Notify the requester when the purchase order for the requisition is canceled.

Email

Business Process Name

PO_CANCELED

Note. You must run this workflow manually from an online page.

See Chapter 6, "Using Workflow,"

Issuing Purchase Order

Cancellation Workflow

Notifications, page 138.

PROCARD_BANK_SMENT_ARR

IVED

Notify appropriate users that a procurement card statement has arrived and is ready for reconciliation.

Email

Notify appropriate users that the reconciliation of a procurement card bank statement was not finished within the preset time frame.

Email

Notify the buyer when a requisition line requires an RFQ.

Worklist

Notify the buyer when a contract expires or reaches the maximum monetary amount. Also, notify the buyer when a contract is nearing its renewal date.

Worklist

PROCARD_GRACE_PERIOD_EX

PIRED

RFQ_NOTIFICATION

Notify the buyer when a POA is received that requires approval by the buyer before being processed.

(POA can be either an EDX or

Online POA.)

Worklist

CONTRACT_EXPIRY_ALERT

Note. You must run this workflow manually from an online page.

See Chapter 6, "Using Workflow,"

Issuing Contract Expiration and

Exceeding Maximum Workflow

Notifications, page 138.

PO_ACKNOWLEDGEMENT

Note. Within the activity tied to this business process, the EDI PO

Acknowledgement and the Online

PO Acknowledgement worklist definitions are the ones being used for this realtime notification.

See Also

Enterprise PeopleTools PeopleBook: PeopleSoft Application Designer Developer's Guide

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Using Workflow Chapter 6

Issuing Requisition Sourcing Workflow Notifications

This section lists the page that you use to issue requisition sourcing workflow notifications using PeopleTools

Workflow Technology.

The PO_RQSRCD_WF process notifies requesters when their requisition lines have been sourced to purchase order lines.

Page Used To Issue Requisition Sourcing Workflow Notifications

Page Name

Requisition Sourced

Workflow - Req Srcd Prcs

Wf (requisition sourced process workflow)

Definition Name

REQ_SRCD_PRCS_WF

Navigation

Purchasing, Purchase

Orders, Stage/Source

Requests, Requisition

Sourced Workflow, Req

Srcd Prcs Wf

Usage

Run the PO_RQSRCD_WF process, which notifies requesters when their requisition lines have been sourced to purchase order lines by the Create Purchase

Orders process

(PO_POCREATE).

Issuing Purchase Order Cancellation Workflow Notifications

This section lists the page that you use to issue purchase order cancellation workflow notifications using

PeopleTools Workflow Technology.

Page Used to Issue Purchase Order Cancellation Workflow Notifications

Page Name Definition Name

Canceled Sourced POs

Workflow - Po Pocncl Prcs

(canceled sourced purchase order workflow - purchase order cancel process)

PO_POCNCL_PRCS

Navigation

Purchasing, Purchase

Orders, Stage/Source

Requests, Cancel Sourced

POs Workflow, Po Pocncl

Prcs

Usage

Run the PO_POCNCL_WF process, which notifies requesters when purchase orders that are sourced from their requisitions have been canceled.

Issuing Contract Expiration and Exceeding Maximum Workflow

Notifications

This section lists the page that you use to issue contract expiration and exceed maximum workflow notifications using PeopleTools Workflow Technology.

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Chapter 6 Using Workflow

Page Used to Issue Contract Expiration and Exceed Maximum Workflow

Notifications

Page Name

Contract Alert Workflow

Definition Name

CNTRCT_ALERT_WF

Navigation

Purchasing, Procurement

Contracts, Create Contract

Alert Workflow, Contract

Alert Workflow

Usage

Run the PO_CNTRCT_WF process, which notifies buyers when their contracts have expired or reached their maximum monetary amounts. In addition, this process will update the work list entries for the buyer when the expiration date, release amount, or any thresholds have been modified for a contract and that contract still exceeds the thresholds.

See Also

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Using Voucher and Order

Contracts," Defining Contract Thresholds and Notifications

Using Purchase Order Acknowledgement Alert Workflow

Notifications

This section discusses how to use the purchase order acknowledgement alert workflow notification within the

PeopleTools Workflow Technology.

The purchase order acknowledgement alert workflow provides buyers with notifications for every purchase order where the purchase order is violating the defined rules for when a purchase order acknowledgement should be received by.

To generate the purchase order acknowledgement alert notification:

1. Define purchase order acknowledgement settings.

2. Run the POA_ALERTS Application Engine process to create worklist entries for the purchase orders that are violating the defined rules for when a purchase order acknowledgement should be received.

3. The system routes the worklist entry to the specified user ID based on the buyer ID on the purchase order header.

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4. Click the worklist entry.

The system transfers you to the purchase order on the Maintain Purchase Order - Purchase Order page where the buyer can acknowledge on behalf of the supplier or get the necessary information to contact the supplier.

See Also

PeopleSoft Enterprise eSupplier Connection 9.1 PeopleBook, "Acknowledging Purchase Orders Online"

Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Defining POA Settings, page 54

Chapter 28, "Creating Purchase Orders Online," Using Purchase Order Acknowledgements, page 787

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Maintaining Vendor

Information," Defining POA Settings

Pages Used to Use Purchase Order Acknowledgement Alert Workflow

Notifications

Page Name

POA Settings (purchase order acknowledgement settings)

Procurement Options

Definition Name

POA_DEF_BU_SP

VNDR_PROC_OPT_SEC

Navigation Usage

Set Up Financials/Supply

Chain, Business Unit

Related, Purchasing,

Purchasing Options,

Purchasing Options

Click the POA Settings link on the Purchasing Options page.

Define the purchase order acknowledgement alert settings for the purchasing business unit.

Vendors, Vendor

Information, Add/Update,

Vendor, Location

Click the Procurement link on the Vendor - Location page.

Define the purchase order acknowledgement alert settings for a vendor and location. The system will first use the POA settings defined for the vendor location on a purchase order, and if not defined there, will then use the POA settings for the purchasing business unit on the purchase order.

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Page Name

POA Alerts

Definition Name

PO_POA_ALERTS

Using Workflow

Navigation Usage

Purchasing, Purchase

Orders, Acknowledgements,

Run Acknowledgement

Alerts, POA Alerts

Initiate the Purchase Order

Acknowledgement Alerts

Application Engine process

(POA_ALERTS) which will generate worklist entries for the buyer. Buyers will receive a worklist entry for each purchase order that is violating the defined

POA settings for when a

POA should be received by the supplier.

Using Item Loader Exception Workflow Notifications

This section discusses how to use the Item Loader EDX exception workflow notification within the

PeopleTools Workflow Technology.

With the Item Loader EDX message, you can receive item data that is published by third-party sources by subscribing to XML-based messages or uploading a flat file.

The following conditions should trigger an exception notification:

Price change exceeds tolerance.

Notify when the new price on the item price change is greater than or equal to the old item price multiplied by the item price tolerance.

New item added.

Notify when a vendor provides a new item on the catalog. This enables you to set up defaults accordingly.

Unit of measure (UOM) does not exist.

New UOM is supplied for this item. Notify when the vendor item UOM does not exist on the UOM tables.

UOM changed.

Notify when the conversion rate has changed.

Error encountered.

Notify when an error (other than the exceptions identified above) is encountered when loading items. For example, a UOM code is not convertible.

To generate the Item Loader exception notification, follow these steps:

1. Define workflow rules using the Workflow Rule Assignment page.

2. Optionally, if you want the system to send out notifications when price tolerances are exceeded, define price tolerances.

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3. Run the Item Loader Workflow process (IN_ITMEXP_WF) to create worklist entries for item loader messages that meet the exception criteria.

Use the process to identity the errors and exceptions generated from the Item Loader process and then route them to the appropriate role user. The process either generates a worklist or emails, depending on how you define setup on the Workflow Rule Assignment page. You can run this process separately or with the Item Loader process.

4. The system routes the worklist entry to the specified user ID.

5. When you click the worklist entry, the system transfers you to the Approve Item Exceptions component, where you can view and approve item exceptions.

Defining Price Tolerances

You define price tolerances to use in conjunction with the price change exception rule. The item load processes compare the new item or vendor price on the Item Loader Staging table to the previous item or vendor price; if the new price exceeds the tolerances, the system generates an exception.

Tolerances may be defined by item category or by item. You can define price tolerances by a percentage increase or decrease, or by a higher or lower amount.

Over Percentage

Tolerance

Defines the minimum percent price increase that generates an exception. The default value is unlimited tolerance.

Over Amount Tolerance Defines the minimum amount price increase that causes an exception to be

generated. The default value is unlimited tolerance.

Under Percentage

Tolerance

Under Amount

Tolerance

Defines the minimum percent price decrease that causes an exception to be generated. The default value is unlimited tolerance.

Defines the minimum amount price decrease that causes an exception to be generated. The default value is unlimited tolerance.

Viewing and Approving Item Exceptions

After you find exceptions, you can use the Item Exception Approvals component to:

Approve the change and process as is (for price change, item does not exist or UOM change only).

Change the item attributes (for any exception).

Cancel the Item Load record completely.

This does not delete the item from the master database, but prevents any updates from being processed.

Change the exception approval status to Approved.

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Chapter 6 Using Workflow

Pages Used to Use Item Loader Exception Workflow Notifications

Page Name Definition Name

Workflow Rule Assignment PV_WF_SETID_ASGN

Item Categories

Purchasing Controls

Item Loader Workflow

Select Exceptions

Exception Summary

Exception Detail

Item Master EIP

Maintenance

CATEGORY_TBL2

ITM_TBL_PUR2

RUN_IN_ITMLOADWF

IN_ITMEXP_SEL

IN_ITMEXP_SUM

IN_ITMEXP_DTL

IN_EIP_ITEM_MAINT

Navigation Usage

SCM Integrations, Setup,

Item Exceptions, Workflow

Rule Assignment

Assign workflow rules by setID, including whether you should notify using workflow or email. You can also check for exceptions and write the exceptions into the error log without generating workflow or email.

Items, Define Controls,

Item Categories, Category

Definition 2

Set price tolerance defaults for items.

Items, Define Items and

Attributes, Purchasing

Attributes, Purchasing

Controls

Set price tolerance defaults for purchased items. These tolerances appear by default from the item category and can be overridden during online item setup.

SCM Integrations, Process

Transactions, Items, Item

Load Workflow, Item

Loader Workflow

Run the Item Loader

Workflow process to process errors and exceptions for Item Loader messages.

SCM Integrations,

Transaction Error Handling,

Approve Item Exceptions,

Select Exceptions

Select exceptions by setID, vendor, item, category, exception rule ID, status, or enterprise integration point control ID.

SCM Integrations,

Transaction Error Handling,

Approve Item Exceptions,

Exception Summary

Display the records matching the selection criteria from the Select

Exceptions page.

SCM Integrations,

Transaction Error Handling,

Approve Item Exceptions,

Exception Detail

Display the exception detail for each exception.

Click the EIP control ID link on the Exception Detail page.

View or correct the item data.

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Viewing and Approving Item Exceptions

Access the Exception Summary page (SCM Integrations, Transaction Error Handling, Approve Item

Exceptions, Exception Summary).

The system displays the status of the exception. Use the Change Status To field to select the status to which you want to change the exception. After making a selection in the Change Status To field, click the Apply All button to change the status for all errors and exceptions that appear. The exception is then available for reprocessing.

Click the Data Correction button on the Exception Detail page to access the appropriate component to correct the exception condition.

Using Rebate Manager Workflow Notification

This section discusses how to use the rebate manager workflow notification within the PeopleTools

Workflow Technology.

The rebate manager workflow provides rebate managers with notifications of claims generated against vendor rebate agreements that they are responsible for.

To generate the rebate manager notification:

1. Run the Rebate Accrual process to generate rebate accrual transactions.

2. Run the Generate Claims process to generate vendor rebate claims.

3. Run the Notify Rebate Manager process to create worklist or email entries to notify the rebate managers that claims have been generated for the vendor rebate agreements they are responsible for.

4. Review the worklist entry or the email sent for the rebate manager notification.

The rebate manager will use either the Message Dashboard or the Worklist page to review and acknowledge the notifications that were sent by the workflow process to the worklist.

See Also

Chapter 12, "Understanding Vendor Rebates," page 309

Chapter 16, "Managing Vendor Rebate Claims," page 367

Appendix C, "Delivered Workflows for PeopleSoft Enterprise Purchasing," page 1327

Prerequisites

Before the rebate manager workflow notification process can be executed successfully you must have:

Defined a vendor rebate agreement with the Notify Rebate Manager check box selected on the Rebate

Agreement - Rebate Options page.

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Chapter 6

Performed purchasing transactions on which to base vendor rebate claims.

Using Workflow

Pages Use to Use Rebate Manager Workflow Notifications

Page Name

Notify Rebate Mgr

Message Dashboard

Worklist

Definition Name

VRBT_NTFY_RM_RC

SAC_EWN_DSH_SRCH

WORKLIST

Navigation

Purchasing, Vendor

Rebates, Vendor Rebate

Claims, Notify Rebate

Manager, Notify Rebate

Mgr

Usage

Initiate the Notify Rebate

Manager process to notify the rebate managers of claims generated against their vendor rebate agreements.

Set Up Financials/Supply

Chain, Common

Definitions, Errors and

Warnings, Message

Dashboard

Worklist, Worklist

Manage rebate manager notifications.

Manage rebate manager notifications.

Using Receipt Quantity Change Workflow Notifications

This section discusses how to use the receipt quantity change workflow notification within the PeopleTools

Workflow Technology.

The receipt quantity change workflow provides the rebate managers with notifications when a receipt associated with vendor rebate agreements that has accruals already included on a claim has been changed.

To generate the receipt quantity change workflow notification:

1. Change the quantity on a receipt associated with a vendor rebate agreement that already has accruals included on a claim using the Maintain Receipts - Receiving page.

Upon changing the quantity the system will automatically generate the notification.

2. Review the worklist entry or the email sent for the receipt quantity change notification.

The rebate manager will use either the Message Dashboard or the Worklist page to review and acknowledge the notifications that were sent by the workflow process to the worklist.

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See Also

Chapter 37, "Receiving Shipments," page 1037

Chapter 12, "Understanding Vendor Rebates," page 309

Chapter 16, "Managing Vendor Rebate Claims," page 367

Appendix C, "Delivered Workflows for PeopleSoft Enterprise Purchasing," page 1327

Chapter 6

Prerequisites

Before the receipt quantity change workflow notification process can be executed successfully you must have previously received a quantity on a receipt that was associated with a vendor rebate agreement that has accruals on a claim.

Pages Use to Use Receipt Quantity Change Workflow Notifications

Page Name

Maintain Receipts -

Receiving

Message Dashboard

Worklist

Definition Name

RECV_WPO

SAC_EWN_DSH_SRCH

WORKLIST

Navigation

Purchasing, Receipts,

Add/Update Receipts,

Maintain Receipts -

Receiving

Usage

Change the quantity on a receipt that is associated with a vendor rebate agreement that has accruals already included on a claim.

Set Up Financials/Supply

Chain, Common

Definitions, Errors and

Warnings, Message

Dashboard

Worklist, Worklist

Manage receipt quantity change notifications.

Manage receipt quantity change notifications.

Using Settlement Manager Workflow Notifications

This section discusses how to use the settlement manager workflow notification within the PeopleTools

Workflow Technology.

The settlement manager workflow provides settlement managers with notifications of claims settlement activity that has occurred against vendor rebate claims that they are responsible for.

To generate the settlement manager notification:

1. Run the Rebate Accrual process to generate rebate accrual transactions.

2. Run the Generate Claims process to generate vendor rebate claims.

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Chapter 6 Using Workflow

3. Run the Claim Settlement process to send claims to PeopleSoft Payables and PeopleSoft Receivables to be processed.

4. Run the Notify Settlement Manager process to create worklist or email entries to notify the settlement managers that claims settlement activity has occurred for the vendor rebate agreements they are responsible for.

5. Review the worklist entry or the email sent for the claims settlement notification.

The settlement manager will use either the Message Dashboard or the Worklist page to review and acknowledge the notifications that were sent by the workflow process to the worklist.

See Also

Chapter 12, "Understanding Vendor Rebates," page 309

Chapter 14, "Generating Rebate Accruals," page 345

Chapter 16, "Managing Vendor Rebate Claims," page 367

Appendix C, "Delivered Workflows for PeopleSoft Enterprise Purchasing," page 1327

Prerequisites

Before the settlement manager workflow notification process can be executed successfully you must have:

Defined a vendor rebate agreement with the Notify Settlement Manager check box selected on the Rebate

Agreement - Rebate Options page.

Performed purchasing transactions on which to base vendor rebate claims.

Pages Use to Use Settlement Manager Workflow Notifications

Page Name

Notify Settle Mgr

Message Dashboard

Worklist

Definition Name

VRBT_NTFY_SM_RC

SAC_EWN_DSH_SRCH

WORKLIST

Navigation Usage

Purchasing, Vendor

Rebates, Vendor Rebate

Claims, Notify Settlement

Manager, Notify Settle Mgr

Initiate the Notify

Settlement Manager process to notify the settlement managers of claims settlement activity that occurred against their rebate claims.

Set Up Financials/Supply

Chain, Common

Definitions, Errors and

Warnings, Message

Dashboard

Worklist, Worklist

Manage settlement manager notifications.

Manage settlement manager notifications.

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Chapter 7

Using Default Hierarchies

This chapter provides overviews of:

PeopleSoft Purchasing default hierarchy.

Unit of measure (UOM) conversion hierarchy.

Matching default hierarchy.

Vendor location hierarchy and multicurrency pricing.

Multicurrency conversions.

Value-added tax (VAT) drivers, VAT driver keys, and the defaulting hierarchy for VAT defaults.

Understanding the PeopleSoft Purchasing Default Hierarchy

For each business unit that you define in PeopleSoft Purchasing, you establish default information used in all transaction processing. Depending on the fields that you define, you can specify default information at each applicable level in the hierarchy or have default fields obtain their values from default values designated at less-specific levels in the hierarchy.

PeopleSoft Purchasing provides default capability for those values that are relatively static in nature (values that remain the same in everyday operations and would become repetitive to enter for every transaction). For example, if you set up the ChartField defaults with the most appropriate values for the items, categories, and requesters, theoretically, you have little need to navigate to the requisition's distribution level to enter any values. The ChartField values at that level are set by default.

PeopleSoft defaults operate in two parallel areas: transactions and items.

Transaction defaults begin at the more-specific buyer level in the hierarchy and end with the most-general user level.

Item defaults begin at the most-specific ship to level and end at the most-general item category level.

Purchasing Transaction Default Hierarchy

This list illustrates an overview of the PeopleSoft Purchasing transaction default hierarchy, where each level represents a factor in the procurement process that can provide a transaction default value:

Level One: Buyer.

Level Two: Requester.

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Using Default Hierarchies Chapter 7

Level Three: Vendor.

Level Four: Purchase Order Origin.

Level Five: Business Unit.

Level Six: User.

The first level, represents the buyer level, one of the most specific default levels. Level six, the last level, represents the user level, which is one of the least-specific default levels. When determining which value to use on a purchase order, the system references the highest default level for a value. If it cannot find one there, it moves down level by level, searching for a defined value.

This table details the levels in the transaction default hierarchy from which the selected transaction values can appear by default. The possible default hierarchy levels listed for each transaction field value begin with the more-specific default and end with the less-specific default.

For example, when determining the accounting template to use for a purchase order, the system first determines whether a vendor has defined an accounting template. If so, the system uses the vendor's accounting template. If a template is not defined at the vendor level, the system uses the accounting template defined at the business unit level.

Transaction Field Value

Accounting Template

Default Hierarchy

Vendor, Business Unit

AM Capitalize Flag

AM Unit

Business Unit

Business Unit

AP Accrue Flag

AP Unit

ASN Flag

Billing Location

BU Comments (business unit comments)

Business Unit

Buyer

Catalog ID

Business Unit

Business Unit

Vendor

Business Unit

Business Unit

User

Vendor, User

Requester

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Chapter 7

Transaction Field Value

Contract Authority

Contract Dispatch Method

Contract Status

Country

Currency

Currency Code/Rate Type

Days + / - Today

Department

Fax

Freight Terms

GL Unit (general ledger unit)

Location Code

Match Option/Match Type

Order Location

Origin

Override Vendor

Payment Terms

Payment Terms Basis Date

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Using Default Hierarchies

Default Hierarchy

User

Vendor, Business Unit

User

Vendor, User

Requester

Vendor, Business Unit

User

Buyer, Requester, Purchase Order Origin, User

Requester

Vendor, Business Unit

Business Unit

Buyer, Requester, Business Unit, User

Vendor, Business Unit

Vendor

Buyer, Requester, Business Unit, User

Buyer

Vendor, Business Unit

Vendor

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Using Default Hierarchies

Transaction Field Value

Phone

PO Authority

PO Dispatch

PO Status

Pricing Location

Receiving Authority

Receiving BU

Replenishment Dispatch Method

Report Template

Requester Name

Requisition Authority

Requisition Status

Returning Location

RFQ Authority (request for quotation authority)

RFQ Dispatch Method

RFQ Status

RTV Debit Memo (return-to-vendor debit memo)

RTV Dispatch Method

Vendor

User

User

Vendor

Default Hierarchy

Buyer, Requester

User

Vendor, Business Unit

Buyer, User

Business Unit

User

Requester, User

Requester, User

Vendor

User

Vendor, Business Unit

User

Vendor

Vendor, Business Unit

Chapter 7

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Chapter 7 Using Default Hierarchies

Transaction Field Value

RTV Fees

RTV Notification Method

RTV Replace Invoice

Sales Tax Tolerance

Sales/Use Tax Information

SetID

Ship To

Ship Via

Vendor

Vendor

Vendor

Vendor

Vendor

User

Default Hierarchy

Buyer, Requester, User

Vendor, Business Unit

Sourcing % Unit Price Tolerance (sourcing percentage unit price tolerance)

Business Unit

Tax Exempt Flag/Tax Exempt ID Business Unit

Use VAT Suspension (use value-added tax suspension) Business Unit

VAT Calculation Type

VAT Declaration Point

Business Unit

Business Unit

VAT Home

VAT Options

VAT Registration ID

VAT Rounding Rule

VAT Tolerance Check Indicator

Business Unit

Vendor, Business Unit

Business Unit

Business Unit

Business Unit

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Transaction Field Value

VAT Transaction Code

Vendor Authority

Business Unit

User

Default Hierarchy

Chapter 7

Requisition Default Hierarchy

PeopleSoft Purchasing enables you to create requisitions using requisition loader batch processing or the requisition online entry pages.

The Purchasing Requisition Loader Application Engine process (PO_REQLOAD) derives its most specific default values from the data sources of this batch process. At a less specific level, you can use the Requisition

Loader Defaults page to set the default values for the Purchasing Requisition Loader process. These default values populate empty requisition ChartFields when you run the process. Use the Requisition Loader Defaults

- Overrides and Options page to set override options for the Purchasing Requisition Loader process. These values replace source requisition ChartField values when you run the process.

After you create requisitions from the online entry pages, use the Maintain Requisitions - Requisition

Defaults page to set defaults for requisitions at the individual transaction level. This page gives you the option to do the following for all future requisition lines:

Specify default values.

The application references the default values specified in the existing hierarchy to populate fields on future lines. If no values are found, it uses the values defined on this page as defaults.

Specify overriding values.

The application references the values that you defined on this page to populate fields on the requisition for future lines.

If you have pre-existing defaults on the Requisitions - Header or Line Defaults pages and you change any of these values, PeopleSoft Purchasing enables you to retrofit these changes to existing requisition lines and distributions.

See Also

Chapter 19, "Creating Requisitions Online," Applying Changes to Default Values in Requisition Header,

Line, Schedule, and Distribution Fields, page 457

Chapter 19, "Creating Requisitions Online," Entering Requisition Header Defaults, page 453

Chapter 20, "Using the Requisition Loader," Understanding the Purchasing Requisition Loader Application

Engine Process (PO_REQLOAD), page 515

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Using Requisition Loader Defaults and Overrides

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Chapter 7 Using Default Hierarchies

Purchase Order Default Hierarchy

PeopleSoft Purchasing enables you to create purchase orders using purchase order staging batch processing or the purchase order online entry pages.

The PO Stage Load Application Engine process (PO_POSTAGE) derives its more specific default values from the data sources of this batch process. At a less-specific level, you can use the PO Loader Defaults page to set the default values for the PO Stage Load process. These default values populate empty purchase order

ChartFields when you run the process. You can also use the PO Loader Defaults - Overrides and Options page to set override options for the Create Purchase Orders Application Engine process (PO_POCREATE).

These values replace existing purchase order ChartField values when you run the process.

Once you create purchase orders from either online or batch processes, use the Purchase Order Defaults page to set defaults for purchase orders at the individual transaction level. The page gives you the option to do the following for all future purchase order lines:

Specify default values.

The application references default values specified in the existing hierarchy to populate fields on future lines. If no values are found, it uses the values defined on this page as defaults.

Specify overriding values.

The application references the values that you defined on this page to populate fields on the purchase order for future lines.

If you have pre-existing defaults on the PO Header Defaults pages and you change any of these values,

PeopleSoft Purchasing enables you to retrofit these changes to existing purchase order lines and distributions.

See Also

Chapter 28, "Creating Purchase Orders Online," Applying Default Field Value Changes to Existing Lines,

Schedules, and Distributions, page 714

Chapter 28, "Creating Purchase Orders Online," Entering Purchase Order Defaults, page 710

Chapter 29, "Using Purchase Order Sourcing," Loading Staged Purchase Order Requests from PeopleSoft

Supply Planning and Manufacturing, page 837

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Using Purchase Order Loader Defaults and Overrides

Purchasing Item Default Hierarchy

This list illustrates an overview of the PeopleSoft Purchasing item default hierarchy, where each level represents a factor in the procurement process that can provide an item default value:

Level One: Ship To Location

Level Two: Regions

Level Three: Kit Item

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Level Four: Item/Vendor Attributes

Level Five: Item BU Attributes

Level Six: Item Purchasing Attributes

Level Seven: Item

Level Eight: Item Category BU Attributes

Level Nine: Item Category

The first level is the ship to location level, which is one of the most-specific default levels. Level nine, the last level, represents the item category level. Level nine is one of the least-specific default levels. When determining which value to use for an item, the system first references the highest default level for a value. If it cannot find one there, it moves down the relevant levels, searching for a defined value to use.

This table details the levels in the item default hierarchy from which the selected transaction values can appear by default. The possible default hierarchy levels listed for each item-related field value begin with the more-specific default and end with the most-general level default.

For example, when determining the asset profile ID for an item, the system first references the item purchasing attributes to determine whether an ID is defined. If so, the system uses that asset profile ID. If an

ID is not defined, the system uses the asset profile ID defined at item category level.

Text in boldface indicates a grouping of default fields, rather than just a single field, for example, matching controls and sourcing controls.

Transaction Field Value

Asset Profile ID

Default Hierarchy

Item Purchasing Attributes, Item Category

Buyer

Currency Code

Origin Country

Item BU Attributes, Item Purchasing Attributes, Item

Category-BU Attributes, Item Category

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes, Item Category

Item/Vendor Attributes

Description

Delivery Instructions

Distribution Network

Inventory BU

Item Purchasing Attributes, Item

Ship To Location

Ship To Location

Ship To Location

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Chapter 7 Using Default Hierarchies

Transaction Field Value

Item/Item Category

Item Specifications

Lead Time Days

Default Hierarchy

Ship To Location

Item Purchasing Attributes

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes, Item Category

Item Purchasing Attributes, Item

Item

Long Description

Lot Item

Manufacturer ID

Manufacturer Item ID

Item/Vendor Attributes, Item

Item/Vendor Attributes, Item

Matching Controls: Unit Price Tolerance Over, Unit

Price Tolerance Under, % Unit Price Tolerance Over, %

Unit Price Tolerance Under, Ext. Price Tolerance Over,

Ext. Price Tolerance Under, % Ext. Price Tolerance

Over, % Ext. Price Tolerance Under

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes, Item Category

Miscellaneous Controls and Options

Accept Any Ship To

Accept Any UOM

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes, Item Category

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes

Item/Vendor Attributes

Accept Any Vendor

Auto Select

Close PO Under Percent Tolerance

Contract Required

RFQ Required

Item BU Attributes, Item Purchasing Attributes

Item BU Attributes, Item Purchasing Attributes

Item BU Attributes, Item Purchasing Attributes, Item

Category

Item BU Attributes, Item Purchasing Attributes

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes

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Using Default Hierarchies

Transaction Field Value

Stockless Item

Taxable

Tax Exempt Information

Ultimate Use Code

Order Location

Packing Weight

Packing Weight UOM

Packing Volume

Packing Volume UOM

Price (vendor)

Price (standard)

Price Can Be Changed On Order

Receiving BU

Receiving Controls

Early Ship Reject Days

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Chapter 7

Default Hierarchy

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes

Ship To Location, Item/Vendor Attributes, Item BU

Attributes, Item Purchasing Attributes

Ship To Location

Item BU Attributes, Item Purchasing Attributes, Item

Category

Ship To Location, Region

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes

Item/Vendor Attributes

Item BU Attributes, Item Purchasing Attributes

Item/Vendor Attributes

Ship To Location

Item BU Attributes, Item Purchasing Attributes, Item

Category

Item BU Attributes, Item Purchasing Attributes, Item

Category

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Chapter 7 Using Default Hierarchies

Transaction Field Value

Inspection ID

Inspection Required

Inspect Sample %

Inspection UOM

Partial Quantity

Quantity Received Tolerance %

Receiving Required Flag

Reject Quantity Over Tolerance

Region of Origin

Sales/Use Tax Information

Serial Item

Ship Via

Standard or Vendor UOM

Standard UOM

Rounding Tolerance

RTV Information: RTV Miscellaneous Charge, RTV

Action, RTV Percent, RTV Reason

Default Hierarchy

Item BU Attributes, Item Purchasing Attributes, Item

Category

Item BU Attributes, Item Purchasing Attributes, Item

Category

Item BU Attributes, Item Purchasing Attributes

Item BU Attributes, Item Purchasing Attributes, Item

Category

Item BU Attributes, Item Purchasing Attributes, Item

Category

Item/Vendor Attributes, Item BU Attributes, Item

Purchasing Attributes, Item Category

Item BU Attributes, Item Purchasing Attributes, Item

Category

Item BU Attributes, Item Purchasing Attributes, Item

Category

Item/Vendor Attributes

Ship To Location

Item

Item BU Attributes, Item Purchasing Attributes, Item

Item/Vendor Attributes

Item

Item/Vendor Attributes

Item/Vendor Attributes

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Transaction Field Value

Sourcing Controls

Use Category Sourcing Controls

Vendor Sourcing Priorities

Sourcing Method

Accumulate Level

Lead Time Factor %

Price Factor %

Ship To Priority Factor %

Vendor Priority Factor %

Cumulative Sourcing: Year to Start, Month to Start,

Number of Months, Start Date, End Date

Vendor Sourcing Priorities

Priority

Vendor ID

Allocation Percentage

Use Item Standard Lead Time

Use Standard Item Tolerance

Vendor History: Number of Months, Month to Start

Default Hierarchy

Item Purchasing Attributes, Item Category

Item Purchasing Attributes

Item Category

Item Purchasing Attributes, Item Category

Item Category

Item Purchasing Attributes, Item Category

Item Purchasing Attributes, Item Category

Item Purchasing Attributes, Item Category

Item Purchasing Attributes, Item Category

Item Category

Item Category

Ship to Location, Region, Item/Vendor Attributes, Item

Category

Ship to Location, Region, Item/Vendor Attributes, Item

Category

Item/Vendor Attributes, Item Category

Item/Vendor Attributes

Item/Vendor Attributes

Item Category

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Chapter 7 Using Default Hierarchies

Purchasing ChartField Default Hierarchy

This list illustrates an overview of the PeopleSoft Purchasing ChartField default hierarchy, where each level represents a factor that can provide a ChartField default value.

Level One: Purchasing Kit Items.

Level Two: Item BU Attributes.

Level Three: Item Purchasing Attributes.

Level Four: Item Category.

Level Five: Requester.

The first level represents the purchasing kit item setup, one of the most-specific default levels. Level five represents the requester level, one of the least-specific default levels. When determining which ChartField value to use, the system first references the highest default level for a value. If it cannot find one there, it moves down the relevant levels, searching for a defined value.

Understanding the UOM Conversion Hierarchy

All of the PeopleSoft applications use UOMs to quantify resources. In PeopleSoft Purchasing, the various

UOMs that are available for the transactions enable you to quantify and track the items that you have purchased.

You must first define the UOM codes to be used in the system on the Units of Measure page. Use this page to define standard conversion rates between any combination of UOMs necessary. These codes are stored in the

Units table.

These are the UOMs commonly used by PeopleSoft Purchasing transactions:

General UOM

The general UOM and its conversion rates are defined on the Units of Measure page. This information is stored in the Units table.

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Inventory item UOM

The inventory item UOM is the UOM defined for the item on the Item Definition - Units of Measure page. The inventory item UOM rate of conversion to the item standard UOM is also defined on the Item

Definition - Units of Measure page. The inventory item UOM information represents the UOM in which the item is tracked in the business process. This information is stored in the Inventory Item table.

Define an item standard UOM when you first enter an item definition into the system on the Item

Definition - General: Common page. After transactions against the item are created, the standard UOM cannot be changed.

The item standard UOM serves as the smallest common denominator for UOM conversion, and should be selected accordingly. The standard UOM should be the smallest unit in which the item is transacted and should be selected, so that any conversions performed for the item are converted from the standard UOM.

For example, do not assign a standard UOM of CASE to an item that you regularly order in the smaller

UOM of BOX or EACH.

Item vendor UOM

The item-vendor UOM is defined for an item-vendor combination on the Vendor's UOM & Pricing Info page. The item-vendor UOM rate of conversion to the item standard UOM is also defined on this page.

The item-vendor UOM information represents the UOM in which the item is purchased from a specific vendor. This information is stored in the Item Vendor table.

See Also

Chapter 4, "Defining Purchasing Item Information," Defining Purchasing Item Vendor UOM and Pricing

Information, page 91

PeopleSoft Enterprise Managing Items 9.1 PeopleBook, "Defining Items by SetID," Associating an Item with a UOM

PeopleSoft Enterprise Managing Items 9.1 PeopleBook, "Defining Items by SetID," Assigning a UOM to an

Item

UOM Defaulting

The PeopleSoft Purchasing UOM default hierarchy is based in part on the type of transaction that you create

(RFQ, requisition, purchase order, contract, or procurement card). If a vendor is involved in the transaction, the setting of the Accept Any UOM check box for the vendor on the Purchasing Attributes - Item Vendor page is also a factor in the UOM default hierarchy.

This diagram illustrates the UOM default hierarchy:

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Chapter 7 Using Default Hierarchies

UOM default hierarchy

When you enter a requisition with a specified item ID, the system searches for a preferred vendor for the item. If a preferred vendor exists, the preferred vendor default UOM appears on the requisition.

If the item ID that you add to a requisition has no vendor ID, the UOM appears by default in the item standard UOM defined for the item.

If you are creating an ad hoc, RFQ, or procurement card transaction, the system creates the transaction with the general UOM that you specify on the transaction.

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See Also

Chapter 4, "Defining Purchasing Item Information," Defining Attributes and Priorities for Purchasing Item

Vendor Relationships, page 86

UOM Conversion Rate Defaults

When you convert one transaction type to another, the UOM on the originating transaction may need to be converted to the UOM that is required for the new transaction. This kind of UOM conversion may be performed when you source a requisition to a purchase order, or award an RFQ and create a purchase order for it.

For example, suppose that you have a requisition with no vendor for a quantity of 10 boxes of an item in the inventory item UOM. When you source the requisition to a purchase order, and the vendor assigned to the purchase order does not accept any UOM, the item vendor UOM overrides the inventory item UOM. If the vendor has a preferred UOM of cases, the requisition quantity of 10 boxes in the inventory item UOM must be converted to the item vendor UOM of cases.

To accomplish this, the system uses the UOM conversion rate between boxes and the standard UOM defined on the Inventory Item table. It then accesses the UOM conversion rate between cases and the standard UOM defined on the Item Vendor table. If none exists, the system uses the conversion rate defined on the Inventory

Item table. The system then reconciles the quantities in the standard UOM to derive the quantity to be ordered in the preferred item vendor UOM of cases.

If the chosen vendor accepts any UOM, you can create the purchase order from the requisition with the inventory item UOM, and no conversion is necessary.

When you source an ad hoc item transaction to a purchase order, the general UOM on the originating transaction is carried to the purchase order and no conversion is performed. This diagram illustrates the process:

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Chapter 7 Using Default Hierarchies

UOM conversion default hierarchy

Understanding the Matching Default Hierarchy

This section outlines the way in which matching and Evaluated Receipt Settlement (ERS) statuses appear by default onto vouchers, purchase orders, and receipts. Status flags determine the application of match rules to a purchase order, receipt, or voucher rather than the type of match control ID. The status flag settings are derived from the vendor location options and options at the PeopleSoft Payables business unit level or

PeopleSoft Purchasing business unit level. ERS processing is further controlled by options at the PeopleSoft

General Ledger business unit level (procurement accounting controls). Matching includes receipt-only matching (voucher to non-purchase order receipts).

This table illustrates the matching default hierarchy used in PeopleSoft Purchasing:

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166

Matching default hierarchy table

Purchase Order Key

MATCH_STATUS_PO

T (to match)

N (not required)

Receipt Key

MATCH_STATUS_RE

CV

T (to match)

N (not required)

ERS_INV_DT_OPT

F (freight terms)

R (receipt date)

N (none)

Voucher Key

MATCH_STATUS_VC

HR

T (to be matched)

N (not applicable)

MATCH_ACTION

Y (yes)

N (no)

E (evaluated receipt settlement)

See Also

PeopleSoft Enterprise Payables 9.1 PeopleBook, "Running the Matching Process"

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 7 Using Default Hierarchies

Understanding the Vendor Location Hierarchy and Multicurrency

Pricing

PeopleSoft Purchasing uses the vendor location hierarchies to determine vendors and various vendor locations for online requisitions. These hierarchies are also used by the PO Calculations Application Engine process (PO_POCALC) to determine the vendor necessary to create a purchase order and determines how pricing is ultimately derived based on this hierarchy.

This section also discusses how involvement of multicurrencies affects which pricing locations the system obtains. Depending on the setting of the multicurrency flags and which currencies have been set up for the purchasing business unit, requester, vendor location, and pricing locations, PeopleSoft Purchasing performs multicurrency conversions when required.

Here is the setup hierarchy for vendor location and pricing:

Level 1

Level 2

Level 3

Level 4

Level 5

When defined, the system uses Item Ship To Vendor Locations to determine the priority vendor and the vendor location specified for the item and ship to location. Based on the vendor and vendor location, the pricing location is derived from the Maintain Vendor setup. If not defined, it uses level 2 defaulting.

When defined, the system uses the Item Region Vendor Locations to determine the priority vendor and the vendor order location specified for the item and region. Based on the vendor and vendor location selected for the region, pricing location is derived based on the vendor and vendor location selected for the region by accessing the location details from the Maintain Vendor setup. If not defined, it uses level 3 defaulting.

The system selects the vendor based on the Item Vendor setup. When defined, the system uses the Ship To Vendor Location to get the vendor order locations to derive the pricing location from the Maintain Vendor setup. Ordering locations can be different from the default locations. If not defined, it uses level 4 defaulting.

The system selects the vendor based on the Item Vendor setup. When defined, the system uses the Region Vendor Location to get the vendor order locations to derive the pricing location from the Maintain Vendor setup. Ordering locations can be different from the default locations. If not defined, it uses level 5 defaulting.

When defined, the system uses the vendor priorities established in the Item

Vendor setup to derive the pricing location from the Maintain Vendor setup. If the Item Vendor setup is the only one defined, the pricing location is always derived from the vendor default location. If not defined, there is no control hierarchy defined.

You can define various locations for a vendor on the Vendor Information - Location page accessed from the

Maintain Vendors menu. Each location that you define points to an ordering location and a pricing location.

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The Item Ship To Vendor Location that you define on the Item Ship To Locations page is a setup based on the combination of the item and ship to location. This setup prioritizes the vendors from which the item can be purchased for a ship to location and determines the specific vendor location from which to get a pricing location.

The Item Region Vendor Location that you define on the Item Region Locations page is a setup based on the combination of the item and region. This setup prioritizes the vendors from which the item can be purchased for a region and determines the specific vendor location from which to get a pricing location. The region is derived from the shipto location on the requisition or staged purchase order's schedule.

The Ship To Vendor Location that you defined on the Ship To Locations page defines all of the vendors that can ship an order to a particular ship to location and is not item-specific. Each vendor and the appropriate vendor order location appears. When determining the vendor ordering location, the system first references the

Item Vendor for the priority 1 vendor and then references the Ship To Location page to determine the order location.

The Region Vendor Location that you defined on the Region Locations page defines all of the vendors that can ship an order to a particular region and is not item-specific. Each vendor and the appropriate vendor order location appears. When determining the vendor ordering location, the system first references the Item Vendor for the priority 1 vendor and then references the Region Location page to determine the order location.

The Item Vendor setup dictates only vendor priorities, and establishes vendor UOM pricing for their pricing locations. This setup does not dictate vendor order locations for the item. Vendor ordering locations default from one of the hierarchies discussed previously or, if no higher level defaults are found, from the default location defined on the Maintain Vendor - Location page. The item vendor relationship that you defined on the Purchasing Attributes - Item Vendor page defines the pricing location for the vendor's default location.

Regardless of the setup that you implement, the pricing location the system uses is ultimately derived from the vendor ordering location. In addition, you can override anything that appears by default on the requisition.

To ensure the override is carried to the purchase order, make sure that the Override Suggested Vendor check box is clear on the Maintain Requisition - Requisition page and the Let POCalc Override Vendor check box is clear on the Selected Item Details page accessed from the Sourcing Workbench.

By selecting this check box on the requisition, you enable the purchase order to be created using the same hierarchy and ignore all of the overriding information that the user enters on the requisition. Once the purchase order is created, the buyer can still override this information prior to dispatching.

For example, suppose that the user changes the vendor or vendor location that appear by default on the requisition, and the override suggested vendor check boxes are selected, the purchase order is created following the hierarchy. This overrides the user suggested vendor or vendor location on the requisition.

The purpose of defining the areas described here is to enable more control and automation in the system, thereby reducing the level of repetitive effort by the user. If you want a more automated system, a greater effort is required for the initial setup. This setup is a one-time effort that can increase the utilization of timesaving batch processing capabilities by the system. These setups require occasional updating as vendor changes occur.

Note. These setup scenarios are based on normal day-to-day practices. Exceptions are handled through

manual intervention at the requisition, sourcing, or the purchase order level.

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Chapter 7 Using Default Hierarchies

See Also

Chapter 4, "Defining Purchasing Item Information," Defining Priority Vendors by Item Ship To Location, page 110

Chapter 4, "Defining Purchasing Item Information," Defining Attributes and Priorities for Purchasing Item

Vendor Relationships, page 86

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Defining Ship To Locations

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Maintaining Vendor

Information," Specifying High-Level Procurement Processing Options

High-Level Controls Implementation: Item Ship To Vendor Location and Item

Region Vendor Location Overview

Establishing Item Vendor relationships associated with a ship to location or region provides the highest degree of control. These relationships are specific to the item and the ship to location or region, and enable definition of the vendor priority and vendor order location at a more granular level.

The ship to location is the most specific designation, which overrides both the Item Region Vendor Location and the Item Vendor priorities and location. Grouping ship to locations into regions provides the ability to override the Item Vendor prioritization and default vendor order location at the intermediate Item Region

Vendor Location level. Both of these options, add flexibility to the default vendor selection hierarchy.

Item Ship To Vendor Location Setup

Defining item ship to vendor locations provides the highest degree of control. This location-pricing relationship is specific to the item and ship to location. You can specify a multitude of ship to locations for one item and define different vendor priorities for the same item based on ship to locations. Indeed, this can require a large effort depending on the quantity of items and ship to locations that you have. However, time spent on this one-time setup saves time and repetitive effort in the future.

When you create the online requisition or when you source an existing requisition, the system references the item and ship to location of the requisition and accesses the item ship to location to get the priority 1 vendor and its vendor location. The system derives the pricing location that you defined for the vendor location. It then looks to the item-vendor relationship to access the pricing for the derived pricing location.

This diagram illustrates this default hierarchy:

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Using Default Hierarchies Chapter 7

Default Hierarchy using the Item Ship To Vendor Location setup

Item Region Vendor Location Setup

A Ship to location can be associated to a region, allowing for management of similar ship to locations at the region level. Item region vendor locations provide a location-pricing relationship that is specific to the item and region. You can associate many regions to an item and define different vendor priorities for the same item based on region. This level of flexibility in vendor prioritization ensures the right suppliers are assigned to the purchase orders, without driving all of the maintenance down to the item ship to location.

When you create the online requisition or when you source an existing requisition, the system references the ship to location to determine the appropriate region. If the ship to location is assigned to a region and a lower level override for the Item Ship To Location does not exist, the system will accesses the item region vendor location to get the priority 1 vendor and its vendor location. The system derives the pricing location that you defined for the vendor location. It then looks to the item-vendor relationship to access the pricing for the derived pricing location.

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Chapter 7 Using Default Hierarchies

Mid-Level Control Implementation: Ship To Vendor Location and Region

Vendor Location Vendor Order Location Overview

Establishing a vendor order location relationship with a ship to location or region provides an intermediate level of control (less control) in the vendor hierarchy. These relationships associate either a ship to location or a region to a vendor order location to override the Vendor's default order location.

With these additional levels of the hierarchy, the priority vendor is determined from the Item Vendor definition. Once the vendor ID is identified, the determination of the vendor order location begins with the ship to vendor location, then looks to the region vendor location and finally the vendor default location, as defined on the Maintain Vendors component.

Ship To Vendor Location Vendor Order Location Setup

The next level of control is provided by defining the vendor order location for each ship to location. The ship to location is based on the requester and buyer setups that include ship to location defaults for the requisition and purchase order.

One vendor ordering location for each vendor is defined for each ship to location. You can have more than one vendor for each ship to location but only one order location per vendor. This default system is not itemspecific, but rather ship to location specific. This setup can require a large effort depending on the quantity of vendors and ship to locations that you have.

As you create an online requisition or when you source an existing requisition, the system references the item-vendor relationship to get the priority 1 vendor. The system then accesses the ship to location to determine the order location for the priority 1 vendor and uses the order location to derive the pricing location. The system then retrieves the pricing for the derived pricing location from the Item Vendor setup.

This diagram illustrates the default hierarchy for defining the ship to vendor order location for each ship to location:

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Using Default Hierarchies Chapter 7

Default Hierarchy using the ship to vendor location vendor order location setup

Region Vendor Location Vendor Order Location Setup

Using the procurement region enables you to group ship to locations for additional defaulting purposes. By defining the vendor order location for each region, you can override the default vendor order location for additional control, without maintaining these overrides for every ship to location in the buying organization.

One vendor ordering location for each vendor can be defined for each region. You can have more than one vendor for each region but only one order location per vendor. This default system is not item-specific, but rather region specific.

As you create an online requisition or when you source an existing requisition, the system references the item-vendor relationship to get the priority 1 vendor. Once the system determines the ship to location's region, it accesses the region vendor location definition to determine the order location for the priority 1 vendor and uses the order location to derive the pricing location. The system then retrieves the pricing for the derived pricing location from the Item Vendor setup.

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Chapter 7 Using Default Hierarchies

Low-Level Control Implementation: Defining Item-Vendor Relationships

Overview

The least amount of control and setup effort occurs in the item-vendor setup scenario. In this case, you only define vendor priorities and vendor UOM pricing for the pricing locations of each established vendor. If neither item ship to location nor ship to location is defined, the system uses the priority 1 vendor default location to derive its pricing location. Any other vendor locations and pricing locations, if defined, are not considered. It then goes back to the item-vendor relationship to reference the pricing for the derived pricing location. This hierarchy applies to purchase orders created online.

This diagram illustrates the default hierarchy for defining item-vendor relationships:

Default hierarchy using the item-vendor setup

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Using Default Hierarchies Chapter 7

Zero-Level Control Implementation Overview

A zero-level of control results from not defining any of these setups, including no item-vendor relationships.

In this scenario, no vendor automatically appears on the requisition, so the standard price is used. You can enter a suggested vendor, but the standard price remains. During the requisition selection process, you can select a vendor if the field is blank or change the vendor that the requester suggested. Because none of the setups were defined, the purchase order is built with the same pricing as the requisition or any buyer pricing updates are performed through requisition selection. Failure to establish item-vendor relationships prevents the creation of contracts. In the same scenario, purchase orders created online use the standard price as well.

Understanding Multicurrency Conversions

You can define multiple currencies and UOMs for a pricing location. When multicurrencies are involved, the system creates the requisition and purchase order provided that there is a currency and UOM match. If there is no match, the system uses an additional hierarchical path to determine the price and currency to use when creating the requisition and purchase order. When required, the system also performs multicurrency conversions.

This diagram illustrates the multicurrency conversion hierarchy:

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Chapter 7 Using Default Hierarchies

Multicurrency conversion

Requisitions are created in the PeopleSoft Purchasing business unit currency when the Allow Multicurrency

Reqs (allow multicurrency requisitions) check box is clear on the Purchasing Definition - Business Unit

Options page. If the check box is selected, the requisition is created in the requester's currency.

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Using Default Hierarchies Chapter 7

When the system determines the pricing location and the pricing location is defined in the Item Vendor setup, the following text describes the steps that the system uses to determine what price to use based on the requisition (transaction) currency.

Use these steps to determine the requisition multicurrency price:

1. If the pricing location has a price defined in the requisition currency and UOM, this is the price that is used.

2. If there is no match in step 1, the system looks at the currency defined for the vendor order location.

3. If the vendor location currency (price vendor location) is not specified, the system moves on to step 4.

If the vendor location currency (price vendor currency) is specified, the system accesses the item-vendor pricing location to obtain the price for the vendor location currency (price vendor currency) and transaction UOM. If there is a match, the system takes that price and converts it to the transaction currency.

4. If there is no match in Step 3, the system uses the transaction currency and vendor default UOM to find a match in the pricing location.

If it finds a match, this price is used on the requisition. When there is no match and if the vendor location currency is not defined, the system skips step 5 and moves on to step 6.

5. If there is no match in step 4, the system uses the price vendor currency derived in step 2 and the default

UOM when checking the pricing location.

If there is a match, it converts it to the transaction currency.

6. If there is no match in step 5, the system uses the standard price.

If the currency is different, it converts that price to the transaction currency.

The requisition base price is derived from the transaction price. If the transaction price is in a different currency, the system converts it into the base price currency.

If the Allow Multicurrency POs check box is selected on the Purchasing Definition - Business Unit Options page, purchase orders are always built in the vendor order location currency (price vendor currency). If the vendor location currency is not defined, or if the Allow Multicurrency POs check box is clear, the purchase order is built in the currency for the PeopleSoft Purchasing business unit.

When the Override Suggested Vendor check box is clear, the purchase order is built from the requisition, and if currencies are different, the system converts the requisition transaction price or currency to the purchase order currency. If the Override Suggested Vendor check box is selected, the system follows the same vendor location hierarchies described previously.

If the purchase order is built from a requisition and the Define PO option was selected during requisition selection, the purchase order is built in the vendor currency, or the modified currency, if it was modified during Define PO.

See Also

Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Creating PeopleSoft

Purchasing Business Units, page 17

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Chapter 7 Using Default Hierarchies

Understanding VAT Drivers, VAT Driver Keys, and the Defaulting

Hierarchy for VAT Defaults

The following table lists the PeopleSoft Purchasing VAT drivers and associated VAT driver keys for the

VAT Defaults component. The table also indicates which drivers control defaults for the Services VAT

Treatment:

VAT Driver

Item BU

VAT Driver

Keys

PeopleSof t

Applicatio n

Countr y

State Applicable to

Regular VAT

Defaults

Item SetID

Item ID

Business

Unit

Purchasing l

Optiona l

Optiona Yes

Applicable to

Services VAT

Treatment

Defaults

No

Item Yes

Item Category

Item SetID

Item ID

Purchasing

, Payables l

Optiona l

Optiona Yes

Item SetID

Category

Code

Purchasing l

Optiona l

Optiona Yes Yes

Yes Vendor Location Vendor

SetID

Vendor ID

Vendor

Location

Purchasing

, Payables l

Optiona l

Optiona Yes

Vendor Vendor

SetID

Vendor ID

Purchasing

, Payables l

Optiona l

Optiona Yes

PO Business Unit Business

Unit

PO Options

Purchasing l

Optiona l

Optiona Yes

SetID

Process

Option ID

Purchasing l

Optiona l

Optiona Yes

Yes

No

Yes

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Using Default Hierarchies Chapter 7

VAT Driver

VAT Entity

Registration

VAT Country

Credit Card

Provider

VAT Driver

Keys

PeopleSof t

Applicatio n

Countr y

VAT

Entity

Country

All Require d

State Applicable to

Regular VAT

Defaults

l

Optiona Yes

Applicable to

Services VAT

Treatment

Defaults

No

No Country All Not applica ble l

Optiona Yes

Vendor

SetID

Credit Card

Vendor

Purchasing l

Optiona l

Optiona Yes No

See Also

PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook, "Getting Started"

178 Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 8

Using Commitment Control

This chapter provides an overview of commitment control in PeopleSoft Purchasing and discusses how to:

Use partial and final liquidations.

Budget check requisitions.

Budget check purchase orders.

Budget check procurement cards.

Run budget period-end processes.

Roll over purchase orders at budget period-end.

Understanding Commitment Control in PeopleSoft Purchasing

In PeopleSoft Purchasing, commitment control enables you to track or control commitments, obligations, or expenditures. You can track for encumbrance accounting, as well as check validation against predefined, authorized budgets. Commitment control enables you to automate large portions of the accounting control process.

When you set up your budgets, you designate amounts for those budgets and associate them with the appropriate PeopleSoft General Ledger business unit. After budgets are established, you can track and control all transactions in the procurement life cycle against the overall budget.

From a budgetary perspective, the procurement life cycle includes pre-encumbrances, encumbrances, and expenditures, all of which are tracked against a designated budget. When you use commitment control, the system deducts each type of financial obligation from the budget and tracks it according to obligation type; this enables you to determine how many dollars you have committed in pre-encumbrances, encumbrances, and expenditures. You can liquidate your pre-encumbrance and encumbrance balances by amount or quantity.

Depending on the liquidate method that you specify on a document, the budget processor uses that method scheme to calculate the remaining spending authority accordingly.

Here is a high-level overview of the procurement life cycle in commitment control:

1. When you generate a requisition, a pre-encumbrance is created in your budget records by the budgetchecking process.

2. When a requisition is sourced to a purchase order, commitment control liquidates the pre-encumbrance from the requisition and establishes an encumbrance for the purchase order.

3. When the purchased goods or services are delivered and the purchase order references a voucher, commitment control liquidates the encumbrance and records an expenditure.

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Using Commitment Control Chapter 8

You can set up commitment control to act on transactions that exceed your budget limit. Transactions and future obligations that exceed the budget are exceptions. You can specify the degree of control and corrective action that you want to enable individual users to exercise over exceptions. Commitment control warns you of exceptions if transactions and future obligations exceed your budgeted amounts. You can set this feature to prevent transactions that exceed a designated budget or to warn you about transactions that exceed a budget, and therefore, require corrective action.

Here are some examples of corrective actions:

Increasing approved budgetary amounts.

Requesting competitive bids from alternate suppliers.

Denying requisitions or canceling purchase orders.

Overriding exceptions by authorized users.

Commitment control enables you to receive warnings about activities that may send your budgets over their approved amounts. For example, a transaction that exceeds the budget can trigger a workflow warning to personnel at a higher level, while still going through the system as if the necessary budget existed. The transaction can also be rejected and stopped without approval from a higher authority. In either scenario, you can define options in PeopleSoft General Ledger that provide you with control over how your system handles exceptions for individual budgets and business units.

Commitment control also enables you to determine a budget date default scheme to use when setting up your system for the first time. Use the Installations Options page to define your preferred budget date defaults. You can either automatically change the accounting date to the document's accounting date, or you can copy the budget date from the predecessor document.

You can view summarized budget checking information for affected transactions on the PeopleSoft

Purchasing requisition and purchase order inquiry pages.

See Also

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Understanding PeopleSoft Commitment

Control"

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Setting Up Basic Commitment Control

Options"

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Setting Installation Options for

PeopleSoft Applications"

Delivered Source Transaction Types for Purchasing

PeopleSoft Purchasing delivers seven source transaction types for use in PeopleSoft Purchasing. This table illustrates the delivered source transactions types along with their selection criteria (header record field name and field value) that the system uses for selecting source transactions for budget-checking.

Note. You can modify the selection criteria for these source transaction types but special care should be taken

when performing the modifications. These modifications are best done by programmers with extensive experience in PeopleSoft application code.

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Chapter 8 Using Commitment Control

Source Transaction Types

This table illustrates the delivered source transaction types for use with PeopleSoft Purchasing:

Source Transaction Type

REQ_PREENC

(requisition pre-encumbrance)

REQ_PRECNP

(requisition - non-prorated)

PO_POENC

(purchase order - encumbrance)

Selection Criteria (Field Name and

Field Value Pertaining to Header

Record)

Interpretation of Selection Criteria

REQ_STATUS = A (approved)

REQ_STATUS = C (closed)

REQ_STATUS = X (canceled)

REQ_STATUS = LA (line approved)

HOLD_STATUS = N

POST_DOC = Y

Requisitions that meet this criteria will be budget checked: requisitions that are not on hold, requisitions with valid ChartField combinations, and those requisitions with a status of approved, closed, canceled, and line approved.

Note. The line approved status is only applicable if you are using the

PeopleSoft eProcurement application.

If you do not require approval before budget checking, then you could modify the selection criteria and enter a REQ_STATUS = PA (pending approval), and perhaps O (open).

REQ_STATUS = A (approved)

REQ_STATUS = C (closed)

REQ_STATUS = X (canceled)

REQ_STATUS = LA (line approved)

HOLD_STATUS = N

POST_DOC = Y

BUDGET_STATUS = V (valid)

Non-prorated value adjustments

(REQ_PRECNP) selection criteria should be the same as requisition preencumbrance (REQ_PREENC) selection criteria.

If you modify the selection criteria for one source transaction type you should also modify the selection criteria for the other source transaction type.

PO_STATUS = A (approved)

PO_STATUS = C (closed)

PO_STATUS = X (canceled)

PO_STATUS = D (dispatched)

PO_STATUS = PX (pending cancel)

HOLD_STATUS = N

POST_DOC = Y (ChartField combinations are valid)

Purchase orders that meet this criteria will be budget checked: purchase orders that are not on hold, purchase orders with valid ChartField combinations, and those purchase orders with a status of approved, closed, canceled, dispatched, and pending cancel.

If you do not require approval before budget checking, then you could modify the selection criteria and enter a PO_STATUS = PA (pending approval), and perhaps O (open).

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Using Commitment Control Chapter 8

Source Transaction Type

PO_POENCNP

(purchase order encumbrance - nonprorate item)

Selection Criteria (Field Name and

Field Value Pertaining to Header

Record)

PO_STATUS = A (approved)

PO_STATUS = C (closed)

PO_STATUS = X (canceled)

PO_STATUS = D (dispatched)

PO_STATUS = PX (pending cancel)

HOLD_STATUS = N

POST_DOC = Y

Interpretation of Selection Criteria

Non-prorated value adjustments

(PO_POENCNP) selection criteria should be the same as purchase order encumbrance (PO_POENC) selection criteria.

If you modify the selection criteria for one source transaction type you should also modify the selection criteria for the other source transaction type.

Warning!

You should not modify the selection criteria for these source transaction types:

PO_PROCARD (procurement card)

PO_RAENC (receipt accruals - encumbrance)

PO_RAEXP (receipt accruals - expense)

Commitment Control Budget Processor Process in PeopleSoft Purchasing

The Commitment Control Budget Processor Application Engine process (FS_BP) enables you to budget check your transactions independent of the online budget checking feature or the batch transaction creation processes. You can select process parameters that capture exactly the group of transactions that you want for budget checking. You access this process from the menu for requisitions, purchase orders, and procurement cards.

The Commitment Control Budget Processor process operates the same whether it is initiated in batch mode using the Process Scheduler or when it is initiated from the purchase order and online entry pages. The batch mode affects a group of transactions whereas the online entry pages affect one transaction. The process compares the total amounts on each transaction (distribution) line to the available amounts in the referenced budget. If any line has an amount that exceeds the available budget, allowing for acceptable tolerances, that line fails budget checking and the system generates an exception message.

After you run the process, the transaction statuses and exception messages are on a batch log, which you can view by clicking the Message Log link on the Process Details page.

All lines on a transaction must pass budget checking for the transaction to receive a Valid budget status.

Transactions with an Error budget status have one or more budget exceptions, which is a transaction or a transaction line that has failed budget checking. Transactions in Error status must be corrected.

The budget processor records liquidations in the commitment control ledger (LEDGER_KK) as taking place in the fiscal year and accounting period in which the liquidation takes place. For example, when a voucher liquidates a purchase order, the liquidation is recorded using the fiscal year and accounting period of the voucher.

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Chapter 8 Using Commitment Control

Note. Commitment control is not automatically invoked for requisitions and purchase orders built from batch

processes. These transactions must be approved and budget checked using separate processes. If you are using commitment control, a requisition cannot qualify for online sourcing until it has been budget checked and has a Valid budget status.

See Also

Chapter 8, "Using Commitment Control," Budget Exceptions, page 185

Chapter 29, "Using Purchase Order Sourcing," page 807

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Processing Source Transactions Against

Control Budgets," Understanding the Budget Checking of Source Transactions

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Setting Up Basic Commitment Control

Options"

Open Period

Open period for receipt accrual transactions is the allowable open date range for accounting entry creation and for budget checking transactions if you are using commitment control. If the accounting date falls within the open period date range, the system posts the accounting entry to the actuals ledger. If the transaction budget date falls before or after the open period date range, the system provides an error or warning message to prevent or warn you from running budget checking.

Open period for requisition or purchase order transactions is the allowable open date range for budget checking transactions when you are using commitment control. If the transaction accounting date falls before or after the open period date range, the system provides an error or warning message to prevent or warn you from running budget checking.

When running budget checking, the system translates the accounting date to a fiscal year and accounting period in the budget ledger.

If you are using commitment control, the system sets open period checking to issue errors as a default. You can activate or override open period checking for PeopleSoft Purchasing on the Purchasing Options page.

You enter the open period date range according to general ledger business unit on the Update Open Period page.

The system validates the open period for requisitions, purchase orders, procurement cards, requisition and purchase order reconciliation workbench (for cancel and close), batch reconciliation processes, and receipt accrual transactions.

See Also

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining Accounting Calendars,"

Defining and Updating Open Periods and Adjustment Periods

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Using Commitment Control Chapter 8

Liquidation Method

Liquidate method is a document schedule control option that instructs the Commitment Control Budget

Processor process how to accurately calculate and relieve outstanding pre-encumbrance and encumbrance balances from the budget ledger. You can selectively determine how to liquidate an encumbrance or preencumbrance at the document schedule level. To enable this functionality, configure your system to liquidate by quantity. Otherwise, all transactions liquidate by amount. Use the Purchasing Definitions - Business Unit

Options page to determine whether a purchase order business unit liquidates by quantity and determine the default liquidate method. You can then modify the liquidate method on the requisition or purchase order, and change it to the desired liquidation method. If you choose to distribute by amount, you can not liquidate by quantity.

When liquidating your balances by quantity, the budget processor must adhere to the following rules:

Calculate the unit price by using the amount of the preceding document.

Calculate the liquidate amount by using the predecessors unit price and multiplying it by the standard quantity of the current document.

Use the newly derived amount to relieve the pre-encumbrance and encumbrance of the preceding document.

See Also

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Setting Installation Options for

PeopleSoft Applications"

Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," page 13

Document Tolerances

For information on document tolerances see the discussion on the topic.

See Chapter 9, "Running Document Tolerances," page 219.

Budget Pre-Check

When running a budget check only (budget pre-check), the budget processor performs the budget checking and edits that it normally does when a budget or transaction is posted, but it does so without committing changes (postings) to the general ledger records such as the Ledger_KK record. The check only feature is specifically intended to check one document, but does not update the Commitment Control tables (ledger and activity log).

To enable budget pre-checking for Purchasing, select Set Up Financials/Supply Chain, Install, Installation

Options, Commitment Control. Then, select the Purchasing check box in the Enable Budget Pre-check section. You must also ensure that if the Purchasing check box is selected in the Enable Commitment Control section on the Installation Options - Products page

The Budget Pre-Check button is available for use on these PeopleSoft Purchasing pages:

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Chapter 8 Using Commitment Control

Requisition

Requester's Workbench

Purchase Order

Express Purchase Order

Buyer's Workbench

When you perform budget pre-check only processing, the statuses of Provisionally Valid or Error on the transaction pages indicate whether a budget is available. If you click the Budget Pre-Check button and if the budget check is valid, then the system sets the budget header status for the requisition to Prov Valid. If the budget check is not valid, then the system sets the budget header status to Error with a link to the Exception page.

See Also

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Processing Source Transactions Against

Control Budgets," Checking Budget Journals and Transactions Without Posting

Budget Exceptions

When using commitment control with PeopleSoft Purchasing, you track all requisition, purchase order and non-prorated purchase order transactions, procurement cards, and receipt accrual transactions that you submit, even if they cause you to go over budget. If you have a transaction that causes you to go over budget, you can adjust either your transaction or your budget to handle the exception.

Inevitably, some transactions do not pass the budget-checking process and the system identifies them as exceptions. Some of the circumstances that generate errors include:

Insufficient funds for a particular transaction.

Inconsistent ChartField combinations.

Transaction has an offset account.

Budget date for a transaction is out of bounds.

Depending on the configuration of your control budgets, the exact reason that a budget has insufficient funds varies from budget to budget. The budget may be on hold, closed, or simply out of funds. Additionally, you may have set up some budgets to approve transactions even if they go over budget amounts. Because of this, exceptions fall into two categories: warnings and errors.

Error Correction

You can correct errors for transactions by taking one or more of the following actions:

Change the amount on the transaction lines to conform to budget limits.

Change the budget amounts to enable more transactions to pass budget check.

Override the budget for a particular transaction.

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Using Commitment Control Chapter 8

Override the entire transaction for all affected budgets.

Only a user with proper authorities can perform this type of correction.

Transactions fail budget checking if they have at least one line that fails budget checking for at least one budget. These transactions are candidates for overrides on either a budget basis or a transaction basis. You are notified of exceptions in two ways: online and through workflow notification.

In an online situation, you receive a message regarding a transaction status when the budget-checking process is complete. The message indicates the type of exception the transaction created and enables you to access the

Transaction Exception page, where you can either view the warnings generated or override the errors.

In a batch budget-checking situation, users are notified of exceptions through workflow, based on their individual security profiles in the system. The system generates an appropriate worklist for each user. Your users have access to a list of budgets that caused exceptions or a list of transactions with exceptions. These two options are available through the PeopleSoft menus or through the worklist.

There are a few different methods to access and override exceptions. You can:

Choose a particular budget from a worklist and access the Budget Exceptions page to view a list of all transactions that have failed for that budget.

Choose a particular transaction on a worklist and access the Transaction Exception page to view a list of all budgets that have caused exceptions on that transaction.

Click the Budget Status link on the document that has an error. When you click this link you access the

Transaction Exceptions page.

On a document with errors, the budget status field will become a link.

The worklist contains a complete list of exceptions, stating the exact cause of the error or warning. These methods enable you to inquire about exceptions and to set overrides. Once the transaction is overridden, the system sends a warning notification.

See Also

Chapter 6, "Using Workflow," page 117

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Managing Budget Exceptions," Setting Up and

Running Exception Notification

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Managing Budget Exceptions," Understanding

Viewing and Handling of Budget Transaction Exceptions

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Managing Budget Exceptions," Viewing and

Handling Budget Transaction Exceptions

Budget Overrides

Various override attributes can affect a budget-checked transaction:

Only authorized users can perform transaction and budget overrides.

Multiple super users can override different budgets for the same transaction.

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Chapter 8 Using Commitment Control

A super user need only override a budget for a particular transaction once, unless that transaction changes after the override.

A user can perform an online remote call to the Commitment Control Budget Processor process.

This process budget checks the transactions that the user selected. Transaction lines with overridden budgets receive a warning for every budget that was exceeded. The system refreshes the budget and transaction exception pages to reflect these changes.

The actual process of overriding a budget just requires selecting a check box on the appropriate page. A super user can access either the Budget Exceptions page or the Transaction Exception page to override specific budgets or transactions.

See Also

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Managing Budget Exceptions," Viewing and

Handling Budget Transaction Exceptions

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Setting Up Commitment Control Security"

Effects of Changes to Budget-Checked Transactions

Altering a transaction that has been through budget checking results in the deletion of all existing exception rows for the transaction. The Commitment Control Budget Processor process deletes the exception rows when the altered transaction is budget checked again. This includes the deletion of override marks for any budgets that appear on the altered transactions. A message to this effect appears when the budget is identified for override and you save the page.

Altering a transaction after it has been budget checked forces the Commitment Control Budget Processor process to treat the transaction as if it were new when budget checking is performed again. All previous exceptions are deleted, and any new ones are recorded as the transaction moves through the Commitment

Control Budget Processor process.

Similarly, altering budgets can affect active transactions. The Commitment Control Budget Processor process reacts to the most current budget data. Consequently, if you alter your budgets and run a budget check, errors on active transactions can change.

Note. If your transaction fails the Commitment Control Budget Processor process, you must override the

budget information using the Budget Exceptions page. Otherwise budget changes can be made by increasing the budget by editing the budget entry.

To make changes to transactions that have been budget checked:

1. Open the source transactions and make the changes to specific transactions.

2. Save your changes.

3. Run the Commitment Control Budget Processor process again to check the budget.

The Commitment Control Budget Processor process removes the original commitment control journal and creates a new one with the changed transactions.

This table lists examples of transaction changes and their resulting effects:

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Using Commitment Control Chapter 8

Transaction Change

Change requisition quantities and requisition item prices.

Change purchase order quantities and item prices.

Modify ChartFields.

Cancel, delete, or insert a requisition line.

Effect

Changes final pre-encumbrance amount generated during budget checking.

Changes final encumbrance amounts generated during budget checking.

Sets the budget status to Not Checked. Requires another run of the budget processor.

Sets budget-header status to Not Checked. Requires another run of the budget processor to release the preencumbrance.

This table lists examples of budget changes and their resulting effects:

Budget Change

Change arrangement of budgets. Move a detail budget under a new summary budget. Technically, you would be changing the tree or the node level within the same tree that the system uses to translate the relationship between a detail budget and a summary budget. You may be moving a node to a new tree.

Effect

If this change results in a transaction that is no longer controlled by the original budget, you must change all relevant transactions to reference the budget in its new location or to reference a new detail budget.

Increase or decrease budget amounts.

Adjust tolerances for a particular budget.

Generates different exceptions for all affected transactions. Increasing your budget decreases exceptions and decreases your budget increases exceptions.

Increasing tolerances generally enables more transactions to pass budget checking within tolerance.

Decreasing tolerances generally enables fewer transactions to pass. Although this alteration does not change the total number of exceptions, it does change the proportion of errors and warnings generated for a particular transaction or budget. You receive more warnings and fewer errors.

Alter the status of a budget.

There are three possible statuses for budgets: Open,

Hold, and Closed. If you change the status of a budget, that action affects all referencing transactions captured in the next budget check.

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See Also

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Managing Budget Exceptions," Viewing and

Handling Budget Transaction Exceptions

Commitment Control and PeopleSoft Purchasing Close Processes

If you have commitment control enabled, the Close Requisitions (PO_REQRCON) and Close Purchase

Orders (PO_PORECON) Application Engine processes consider this functionality.

After you have selected your process parameters and run a close process, the process verifies whether you have enabled commitment control. If it is enabled, the process updates the budget distribution lines and the budget header on all requisitions (for PO_REQRCON) or purchase orders (for PO_PORECON) that meet the close criteria. The status on the distribution line and the header changes from V (valid) to N (not checked).

The close processes set the budget status to Not Checked and the fully liquidated flag to Yes. Run the budget processor to relieve the remaining encumbrance.

For example, you have a purchase order for 100.00 USD, but after discounts, the vendor only invoices you for

98.00 USD. Before running the Close Purchase Orders process, the remaining 2.00 USD still exists as an encumbrance. When you close the purchase order, you must liquidate the remaining encumbrance for 2.00

USD. For this reason, the Close Purchase Orders process set the budget status to Not Checked and fully liquidated flag to Yes. You then run the budget processor to relieve the remaining encumbrance. The running of the budget processor is not an automated step in the close processes.

The commitment control process creates separate closing entries in the PeopleSoft Commitment Control activity log for purchase orders and requisitions. The activity log retains and displays the complete budgetary life cycle of purchase orders and requisitions.

See Also

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Inquiring on Budgets and Transaction

Activities," Viewing the Activity Log

Chapter 24, "Closing Requisitions," page 575

Chapter 34, "Closing Purchase Orders," page 1003

Budget Checking Receipt Accruals

This process is used to budget check the expense and encumbrance reclassification transactions. You can budget check either type.

See Also

Chapter 41, "Using Receipt Accrual," Performing Budget-Checking for Receipt Accruals, page 1196

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189

Using Commitment Control Chapter 8

Common Elements Used in This Chapter

Activity ID

Foreign Amount

Line Status

Maximum Rows

Monetary Amount

More Budgets Exist

Activity ID assigned to the individual tasks or events that you want to update in a project.

Select to access the Budget Exceptions - Refine Inquiry Criteria page.

Advanced Budget

Criteria

Budget Date

Budget Period

Exception Type

More Lines Exist

Override Budget

Override Transaction

PC Business Unit

(PeopleSoft project costing business unit)

Budget date of the transaction line. You define which field the system uses for the budget date for the transaction in the source transaction definition.

Period to which the budget transaction posts.

Select to limit the exception rows retrieved to transactions with either an Error or

Warning exception. This is a required field.

The amount of the line in the entry currency.

Use to limit the rows to lines with either Error or Warning exceptions.

Select the maximum number of rows that are to appear in the scroll area.

The amount in the base currency of the primary ledger.

If selected, the transaction has more exceptions than the number that you entered in the Maximum Rows field.

If selected, the transaction has more transaction line exceptions than the number that you entered in the Maximum Rows field.

Select to update the control budget although the transaction exceeds the budget.

This option is available only if the budget transaction fails budget checking and you have super-user authority. It is not available if the source transaction type does not enable overrides and the budget header status is Not Checked. The budget header status appears as Not Checked if you changed the source transaction after the Commitment Control Budget Processor process issued the exceptions and you have not run the process again.

After you override a budget with exceptions, adjust the budget available amount, or adjust the source transaction amount; the transaction passes budget checking.

Select to enable the entire transaction to update the control budget, even if error exceptions exist. This option is available only for super users. This option is not available if the transaction passes budget checking with only warning exceptions.

You can select it prior to budget checking or after you run the Commitment

Control Budget Processor process and it returns errors.

Business unit assigned to the project in PeopleSoft Project Costing.

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Chapter 8 Using Commitment Control

Resource Type

Resource category, such as labor, associated with a given cost. This is used in conjunction with resource categories, resource subcategories, and resource groups.

Tran Type (transaction

type)

Select the type of transaction that you want to budget check. Values are:

REQ_PREENC: Requisition pre-encumbrance.

REQ_PRECNP: Non-Prorated requisition pre-encumbrance.

PO_POENC: Prorated purchase order encumbrance.

PO_POENCNP: Non-prorated purchase order encumbrance.

PO_PROCARD: Procurement card transaction.

PO_RAENC: Receipt accrual encumbrance.

PO_RAEXP: Receipt accrual expenses.

Displays the related accounting entry type.

Type

Budget Override

Available Info

Budget Check

Click the Budget Override Available Info button to determine the reason why you cannot override a single budget entry.

Click to run the remote call budget processor again once you override the transaction or a budget. You should also run the process again if you change the requisition, purchase order, or procurement card transaction.

Tran Override Available

Info (transaction override

available information)

Click the Tran Override Available Info button to determine the reason why you cannot override the transaction.

Budget Override

Select the Budget Override tab to access a page that enables you to access the

Budget Exceptions page or Budget Details page. You must have authority to inquire about the budget to access these pages.

View Exception Details

Click the View Exception Details button at the exception header level to access the Exception Details page for transaction headers to view the budgets with error or warning exceptions, budget ChartFields, and any overrides.

Run Control ID

Create a unique run control ID for each type of source transaction that you want to budget check independently of other source transactions. If you use the same run control ID for purchase orders and requisitions, the budget processor will process both purchase orders and requisitions existing at the time the run control

ID is used to initiate the budget checking process. For example, this occurs if you have created a run control ID of BPO1 for both purchase orders and requisitions.

However, if you create a different run control ID for purchase orders and requisitions, the different source transactions are processed independently of each other. For example, creating BPPO1 for purchase orders and BPRQ1 for requisitions enables you to budget check the two source transactions independently of one another.

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See Also

Chapter 8, "Using Commitment Control," Commitment Control Budget Processor Process in PeopleSoft

Purchasing, page 182

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining and Using ChartFields,"

Understanding PeopleSoft Enterprise ChartFields

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Setting Installation Options for

PeopleSoft Applications," Setting Up Application-Specific Installation Options

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Inquiring on Budgets and Transaction

Activities," Viewing Budget Details and Transaction Activity

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Managing Budget Exceptions," Viewing and

Handling Budget Transaction Exceptions

PeopleSoft Enterprise Commitment Control 9.1 PeopleBook, "Processing Source Transactions Against

Control Budgets"

Using Partial and Final Liquidation

If you are using commitment control, you can specify partial or final liquidation of a requisition when it is sourced to a purchase order. When you create or modify a purchase order, you can designate that the purchase order is final, prompting the system to liquidate the preceding requisition. You can make your purchase order the final document to be affected by the preceding requisition, for less money than you originally authorized.

You can also reverse the finalization of the document.

In PeopleSoft Purchasing, you can perform partial or final liquidations where the successor transaction references and liquidates its predecessor, including:

Requisition to purchase order.

Purchase order to payment voucher.

The system fully liquidates document lines automatically upon completion of the subsequent transaction when you designate the transaction as final. The system then creates the appropriate accounting entries to relieve outstanding pre-encumbrances and encumbrances, performing the reversing entry according to the document type and entry event of the referenced transaction.

Using partial and final liquidation, you can:

Liquidate requisition or purchase order lines and relieve the outstanding pre-encumbrance and encumbrance from the budget ledger.

Create the appropriate accounting transactions in the budget to relieve outstanding pre-encumbrances and encumbrances as applicable.

Perform the correct accounting and available (open) amount calculations for modifications and cancellations of predecessor or successor transactions.

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Process final liquidations at the schedule line level of transactions, that is, orders can have some lines open while others are closed.

The corresponding voucher lines that reference (liquidate) the lines determine this.

At times, multiple transactions reference the same predecessor. If two payment vouchers for two invoices of

500.00 USD each are associated to the same 1000.00 USD purchase order, only the second payment voucher is considered final. The first 500.00 USD payment voucher is considered partial, because an additional 500.00

USD encumbrance remains outstanding. If the first 500.00 USD actually represents the last expected action against the order, you can designate the voucher as final for less and relieve the entire 1000.00 USD encumbrance.

Partial and Final Liquidation Example

For example, suppose that you create a requisition for 200.00 USD and run budget checking. The system shows an increase of 200.00 USD to the existing pre-encumbrance amount of 40.00 USD.

Amount Ledger

Budget 5,000,000.00 USD

Expense

Encumbrance

0.00 USD

1000.00 USD

Pre-encumbrance 240.00 USD

Then create a purchase order that references this requisition for 165.00 USD. When you run budget checking, the pre-encumbrance decreases and the encumbrance increases by 165.00 USD.

Amount Ledger

Budget 5,000,000.00 USD

Expense

Encumbrance

Pre-encumbrance

0.00 USD

1165.00 USD

75.00 USD

Create another purchase order that references this requisition for 25.00 USD, finalize the purchase order and run budget checking. The total for all purchase orders is 190.00 USD, but the pre-encumbrance is liquidated with the full requisition amount of 200.00 USD. The pre-encumbrance decreases and the encumbrance increases by 25.00 USD.

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Ledger

Budget

Expense

Encumbrance

Pre-encumbrance

5,000,000.00 USD

0.00 USD

1250.00 USD

40.00 USD

Amount

To liquidate a requisition for an amount lower than the original:

1. Reduce the quantity or price total on the purchase order to the correct amount

2. Click the Finalize Document button.

3. Save the purchase order.

4. After approving the revised purchase order, run budget checking to confirm the correction.

Reversing Partial or Final Liquidation

You can also reverse finalization of a purchase order or voucher. The system then restores the original budgetary amount to the preceding documents that had previously been liquidated. If you do not declare a document final (for less), no additional liquidation takes place. The system replicates the partial or final status of a document down to all the document distribution lines associated with the given document schedule, adjusting all ledgers accordingly.

For example, you can process a requisition for 1000.00 USD, then create a purchase order for only 700.00

USD, without expecting to spend the remaining 300.00 USD that the requisition authorizes. You can declare the purchase order final (for less), thereby liquidating the pre-encumbered 300.00 USD from the requisition and freeing that money for other purposes.

If you find later that you need to spend another 250.00 USD on the purchase order from the original requisition, you should either click the Undo Finalize Line button or the Undo Finalize Entire Document button and save the purchase order. Then, select to budget check the revised purchase order document again.

You can declare the purchase order partial, thus liquidating the requisition and freeing the last 50.00 USD for other purposes.

When you finalize the purchase order document on the affected requisition and then perform a budget check on the purchase order again, the Final field is selected and the Budget Line Status value on the Statuses tab is set to Valid on PO Distribution. Also, the Commitment Control Close Flag check box is selected on the

Details tab on the Maintain Requisitions

Distribution page.

When you undo finalize on the purchase order document on the affected requisition and then budget check the purchase order again, the Final field is cleared, and the Budget Line Status field value on the Statuses tab is set to Valid on PO Distribution. In this case, the Commitment Control Close check box is deselected on the Details tab on the Maintain Requisitions

Distribution page.

To reverse a reduction:

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1. Clear the final check box for the affected line or lines, or click the Undo Finalize Entire Document button.

2. Save the purchase order.

3. Run budget checking to confirm the correct amount.

Budget Checking After Partial or Final Liquidation

You must budget check each purchase order after you declare it either final (for less) or partial. During budget checking, the system treats a finalized purchase order as a direct encumbrance, still subject to preencumbrance tolerance checking.

Note. If two or more purchase orders are linked to one requisition, none of those purchase orders can be

finalized until all of those purchase orders have passed budget checking.

Note. You cannot change a purchase order's liquidation status while its budget-checking status is in Error or

once the distribution has been canceled.

Note. You can only indicate that a purchase order is partial after it has successfully completed budget

checking.

Running Entry Events After Partial or Final Liquidation

If you're using entry events, you must run them after budget checking. This generates your pro forma accounting entries, adjusted for finalization or partialization.

See Also

Chapter 8, "Using Commitment Control," Understanding Commitment Control in PeopleSoft Purchasing, page 179

Chapter 10, "Using Entry Events," page 225

Budget Checking Requisitions

This section discusses how to:

Budget check requisitions using the Commitment Control Budget Processor process.

Budget check requisitions using online pages.

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Pages Used to Budget Check Requisitions

Page Name

Req Budget Check

(requisition budget check)

Definition Name

REQ_KK_CHECK_REQ

Maintain Requisitions -

Requisition

Requisition Exceptions

Requisition Line Drill

Down

Line Exceptions

REQ_FORM

KK_XCP_HDR_PO2

KK_DRL_PO2_SEC

KK_XCP_LN_PO2

Navigation Usage

Purchasing, Requisitions,

Budget Check, Req Budget

Check

Run the Comm. Ctrl.

Budget Processor process for requisitions.

Commitment control must be enabled for PeopleSoft

Purchasing.

Purchasing, Requisitions,

Add/Update Requisitions,

Maintain Requisitions -

Requisition

Create requisitions online.

Commitment Control,

Review Budget Check

Exceptions, Purchasing and

Cost Management,

Requisition, Requisition

Exceptions

View budget check exceptions for requisitions.

Users with appropriate authority can override the budget exceptions on this page.

Click the View

Exception Details button on the Requisition Exceptions page for transaction headers for a specific requisition line.

View line details for requisitions with budget exceptions.

Commitment Control,

Review Budget Check

Exceptions, Purchasing and

Cost Management,

Requisition, Line

Exceptions

View requisition lines on a requisition with budget check exceptions. Users with appropriate authority can override the budget exceptions on this page.

Budget Checking Requisitions Using the Commitment Control Budget

Processor Process

Access the Req Budget Check page (Purchasing, Requisitions, Budget Check, Req Budget Check ).

To budget check requisitions, select REQ_PREENC in the Trans Type field.

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Process Options

Req ID (requisition ID)

Values are:

All: Select to budget check all requisitions.

Some: Select to display the From and To fields. Budget checks all requisitions that match the range specified in the From and To fields.

Value: Select to display the Req ID field. Budget checks the requisition that matches the ID specified in the Req ID field.

Req Date (requisition

date)

Values are:

All: Select to budget check all requisitions.

Some: Displays the From and To fields. Budget checks all requisitions for which creation dates fall within the dates specified in the From and To fields.

Value: Displays the Req Date field. Budget checks requisitions for which creation dates match the date specified in the Req Date field.

Budget Checking Requisitions Using Online Pages

When you create online requisitions, you can budget check them in realtime by clicking the Budget Check button on the Maintain Requisitions - Requisition page. This invokes the Commitment Control Budget

Processor process by remote call.

See Also

Chapter 8, "Using Commitment Control," Commitment Control Budget Processor Process in PeopleSoft

Purchasing, page 182

Chapter 19, "Creating Requisitions Online," Creating Requisition Header Information, page 440

Budget Checking Purchase Orders

This section discusses how to:

Budget check purchase orders using the Commitment Control Budget Processor process.

Budget check purchase orders using online pages.

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Pages Used to Budget Check Purchase Orders

Page Name

Budget Check Request

Maintain Purchase Order -

Purchase Order

PO_LINE

Purchase Order Exceptions

KK_XCP_HDR_PO1

Purchase Order Line Drill

Down

KK_DRL_PO1_SEC

Line Exceptions

Purchase Order (NP)

Exceptions (purchase order non-prorated exceptions)

KK_XCP_HDR_PO1N

NonProrated Purchase

Order Line Drill Down

Definition Name

PO_KK_CHECK_REQ

KK_XCP_LN_PO1

KK_DRL_PO1N_SEC

Navigation

Purchasing, Purchase

Orders, Budget Check, PO

Budget Check Request

Usage

Run the Comm. Ctrl.

Budget Processor process for purchase orders. You must enable commitment control for PeopleSoft

Purchasing.

Purchasing, Purchase

Orders, Add/Update POs,

Maintain Purchase Order -

Purchase Order

Enter or change purchase order information online.

Commitment Control,

Review Budget Check

Exceptions, Purchasing and

Cost Management, Purchase

Order, Purchase Order

View budget check exceptions for purchase orders. Users with appropriate authority can override the budget exceptions on this page.

Click the View

Exception Details button on the Purchase Order

Exceptions page for transaction headers for a specific purchase order.

View line details for purchase orders with budget exceptions.

Commitment Control,

Review Budget Check

Exceptions, Purchasing and

Cost Management, Purchase

Order, Line Exceptions

View lines on a purchase order with budget check exceptions. Users with appropriate authority can override the budget exceptions on this page.

Commitment Control,

Review Budget Check

Exceptions, Purchasing and

Cost Management, Purchase

Order Non-prorated,

Purchase Order (NP)

Exceptions

View budget check exceptions for non-prorated purchase orders. Users with appropriate authority can override the budget exceptions on this page.

Click the View

Exception Details button on the Purchase Order (NP)

Exceptions page for transaction headers for a specific non-prorated purchase order line.

View line details for nonprorated purchase orders with budget exceptions.

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Page Name

Line Exceptions

Definition Name

KK_XCP_LN_PO1N

Using Commitment Control

Navigation Usage

Commitment Control,

Review Budget Check

Exceptions, Purchasing and

Cost Management, Purchase

Order Non-prorated, Line

Exceptions

View lines on a nonprorated purchase order with budget check exceptions. Users with appropriate authority can override the budget exceptions on this page.

Budget Checking Purchase Orders Using the Commitment Control Budget

Processor Process

Access the Budget Check Request page (Purchasing, Purchase Orders, Budget Check, PO Budget Check

Request).

To budget check prorated purchase orders, select PO_POENC in the Trans Type field.

To budget check non-prorated purchase orders, select PO_POENCNP in the Trans Type field.

Process Options

PO ID (purchase order

ID)

Values are:

All: Budget checks all purchase orders.

Some: Select to display the From and To fields. Budget checks all purchase orders that match the range specified in the From and To fields.

Value: Select to display the PO ID field. Budget checks the purchase order that matches the ID specified in the PO ID field.

PO Date (purchase order

date)

Values are:

All: Select to budget check all purchase orders.

Some: Displays the From and To fields. Budget checks all purchase orders for which creation dates fall within the dates specified in the From and To fields.

Value: Displays the PO Date field. Budget checks purchase orders for which creation dates match the date specified in the PO Date field.

Budget Checking Purchase Orders Using Online Pages

When you create online purchase orders, you can budget check them in realtime by clicking the Budget

Check button on the Maintain Purchase Order - Purchase Order page. This invokes the Commitment Control

Budget Processor process by remote call.

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See Also

Chapter 8, "Using Commitment Control," Commitment Control Budget Processor Process in PeopleSoft

Purchasing, page 182

Chapter 28, "Creating Purchase Orders Online," Creating Purchase Order Headers, page 684

Budget Checking Procurement Cards

You can now perform budget check and ChartField edit validations for your procurement card transactions during the Statement Load process and online processing. Use the budget processor to invoke budget check and ChartField edits after staged data is loaded into the Statement Load process and when users use the

Reconcile Statement component.

You can use the budget check or the ChartField Edit validation process during:

The Statement Load process

If you enable commitment control for procurement cards, the system validates the budget rows. If rows are not budget checked, the budget status is N (not checked). If a row fails the budget check, the budget status is E (error). If rows pass the budget check, the budget status is V (valid).

If you selected edit combination options on the Purchasing Options page, the system performs ChartField edit combinations based on the ChartField Editing template. The system indicates a status of V (valid for passing rows) or R (recycle for rows that fail).

Online processing

If you enable commitment control for procurement cards, the system performs ChartField edits and budget-check validations after the users modify the distribution information and click the Save button on the Reconcile Statement page.

The system also validates for ChartField combinations on the Distribution Templates page. Once a user modifies and saves information on this page, the system automatically uses the budget processor to check for valid ChartFields.

Note. To budget check procurement cards, first select the procurement card option on the Installation Options

page.

Users can access the Budget Check Exceptions page to fix all rows that did not pass budget check. All failed rows must be fixed before successfully passing budget check.

This section discusses how to:

Budget check procurement cards during the Statement Load process.

Budget check procurement cards using the Reconcile Statement - Procurement Card Transactions page.

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See Also

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Setting Installation Options for

PeopleSoft Applications"

Pages Used to Budget Check Procurement Cards

Page Name

Load Statement

Reconcile Statement -

Procurement Card

Transactions

Budget ChartField

Validation

Budget Check Exceptions

KK_XCP_HDR_PO3

Source Transactions -

Definition

Definition Name

RUN_CC_LOADTRANS

CC_RECON_WB

CC_KK_CHECK_REQ

KK_SOURCE_TRAN1

Navigation

Purchasing, Procurement

Cards, Process Statements,

Load Statement

Usage

Run the ProCard Load

Statement Application

Engine process

(PO_CCLOADLD) to load the statement lines from the staging table into the statement tables and to perform auto-reconciliation using the settings that you defined on the Procurement

Card Load Statement

Options page.

Purchasing, Procurement

Cards, Reconcile, Reconcile

Statement, Reconcile

Statement - Procurement

Card Transactions

Review, manage, and approve procurement card transactions loaded by the

ProCard Load Statement process. You can view all of the procurement card transactions that you have been granted authority to access on the Card Data page.

Purchasing, Procurement

Cards, Process Statements,

Budget ChartField

Validation

Run the Comm. Cntrl

Budget Processor process for the procurement cards in batch mode.

Commitment Control,

Review Budget Check

Exceptions, Purchasing and

Cost Management,

Procurement Card, Budget

Check Exceptions

Review procurement card transactions that failed the budget check process.

Commitment Control,

Define Control Budgets,

Source Transactions, Source

Transactions - Definition

Define source transactions for commitment control.

Note. Select Planned as the value for the Commitment

Control Amount Type field.

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Page Name

Budget Definitions -

Control Budget Options

Definition Name

KK_BUDG1

Chapter 8

Navigation Usage

Commitment Control,

Define Control Budgets,

Budget Definitions, Budget

Definitions - Control

Budget Options

Establish budgetary controls.

Note. If you select Entries

Must Balance on the

Control Budget Options page, enter a default account value for at least one setID for budget entry offsets.

You must also enter a source transaction offset account for each source transaction type that affects this budget definition.

Budget Checking Procurement Cards During the Statement Load Process

Access the Load Statement page (Purchasing, Procurement Cards, Process Statements, Load Statement).

See Also

Chapter 11, "Managing Procurement Cards," Loading Procurement Card Statements to Application Tables, page 276

Budget Checking Procurement Cards Using the Reconcile Statement -

Procurement Card Transactions Page

Access the Reconcile Statement - Procurement Card Transactions page (Purchasing, Procurement Cards,

Reconcile, Reconcile Statement, Reconcile Statement - Procurement Card Transactions).

When you create modify procurement cards using the Reconcile Statement - Procurement Card Transactions page, you can budget check them in realtime when you save the page. This invokes the Commitment Control

Budget Processor process by remote call.

Running Budget Period-End Processes

This section provides an overview of budget period-end processing and discusses how to run budget periodend processes.

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Understanding Budget Period-End Processing

Because a budget period can span a calendar or fiscal year, PeopleSoft uses the term period-end universally and applies it to the end of a budget period, the end of a fiscal year, or the end of a calendar year.

The budget period-end processes enable you to continue budgets across budget periods or fiscal years. You may have budgets that stay in force for more than one fiscal period. You may have project budgets that span more than one calendar year. Consequently, you may want to keep budgets in force across these time frames.

The commitment control feature in PeopleSoft Purchasing provides you with two options.

You can keep a budget active beyond the end of a fiscal period, allowing purchasing transactions to reference that budget and to remain unaffected by fiscal period-end accounting procedures. This option is useful for project-related budgets that are finite in scope.

You can also close a budget at the end of a budget period and reestablish it in the next period while keeping all outstanding transactions active into the next budget period. This option is useful for ongoing accounts and budgets that you want to infuse with additional funds at regular intervals. You can end one period and start the next one with new amounts in selected budgets. You do not lose your outstanding transactions from the previous budget period, which saves you from having to enter them all over again in the new budget period.

PeopleSoft Purchasing enables you to roll these transactions over into the new budget period automatically by using these budget period-end business processes.

Budget period-end processes differ from fiscal period-end processes. Your fiscal period-end closing entries have no effect on the commitment control ledgers. Therefore, fiscal period-end closing entries do not invoke the Commitment Control Budget Processor process for budget checking.

The first period-end business processes are the close processes for requisitions and purchase orders that remove outstanding requisitions and purchase orders from your budget.

The other aspect of these processes involves use of the PO Rollover1 (PO_POROLL1) and PO Rollover2

(PO_POROLL2) Application Engine processes.

These processes enable you to budget check distribution lines against budgets with expiring periods and then roll funds over to new periods.

See Also

Chapter 11, "Managing Procurement Cards," Loading Procurement Card Statements to Application Tables, page 276

Chapter 34, "Closing Purchase Orders," page 1003

Chapter 24, "Closing Requisitions," page 575

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Pages Used to Run Budget Period-End Processes

Page Name

Close Requisitions

Close PO

PO Rollover

Purchase Order Selection

PO_ROLLOVER_SEARCH

Purchase Order Details

PO Rollover1

Budget Check Request

PO Rollover2

Definition Name

RUN_REQRECON

RUN_PORECON

PO_ROLLOVER

PO_ROLLOVER_LN

RUN_POROLL1

PO_KK_CHECK_REQ

RUN_POROLL2

Navigation

Purchasing, Requisitions,

Reconcile Requisitions,

Close Requisitions

Usage

Run the Close Requisitions process and produce the

Close Requisition SQR report (PORQ009).

Purchasing, Purchase

Orders, Reconcile POs,

Close Purchase Orders,

Close PO

Purchasing, Purchase

Orders, Budget Year End

Processing, PO Rollover

Workbench, PO Rollover

Run the Close Purchase

Order process and produce the Close Purchase Order

SQR report (POPO008).

Select purchase orders to rollover and change their statuses to Pending before running the PO Rollover1 process. Check the roll status of the purchase orders.

Click the Selection Criteria link on the PO Rollover page.

Use the filters to choose purchase orders for consideration for rollover.

Click the Secondary

Lines button on the PO

Rollover page.

Purchasing, Purchase

Orders, Budget Year End

Processing, Request PO

Rollover1, PO Rollover1

View additional details for purchase orders listed on the Purchase Order

Selection page.

Run the PO Rollover1 process.

Purchasing, Purchase

Orders, Budget Check,

Budget Check Request

Purchasing, Purchase

Orders, Budget Year End

Processing, Request PO

Rollover2, PO Rollover2

Run the Commitment

Control Budget Processor process.

Run the PO Rollover2 process.

Rolling Over Purchase Orders at Budget Period-End

This section provides an overview of purchase order rollover process and discusses how to:

Create a data set for retrieval by the purchase order rollover workbench.

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Chapter 8

Select and qualify purchase orders for rollover.

Review purchase order details.

Run the PO Rollover1 process.

Run the PO Rollover2 process.

Run the PO Roll Open Encumbrance process.

Run the Non Qualified PO Listing process.

Using Commitment Control

Understanding the Purchase Order Rollover Process

If you are using commitment control, you can use purchase order rollover to budget check distribution lines against budgets with expiring budget periods and then roll funds over to new budget periods. PeopleSoft

Purchasing enables you to select specific purchase orders to rollover.

Purchase orders that are canceled, fully vouchered, on hold, in process, or have not been successfully budget checked are not qualified for rollover. In addition, distribution lines that are canceled, closed or fully liquidated (that is, the commitment control close flag (KK_CLOSE_FLAG) is set to Y) do not qualify for rollover.

The system places strict requirements on purchase orders and their interdependence with accounts payable, receiving, and commitment control before it makes the purchase orders eligible for rollover. To assist you in reviewing details about why the purchase order is not qualified for rollover and provide you a way to manage exceptions across a large data set, the system provides two options for working with rollover exceptions.

First, you can use the PO Rollover View page to define specific fields that create data sets that you can use to review purchase order rollover information. A search ID value is used to define a data set. As an example of creating a data set, you might want to include only those purchase orders where the Project ChartField is within a range or you might want to exclude purchase orders where the Project ChartField is populated.

When you run the PO_POROLLVW process, the system creates the search ID that you define. You can then use the PO Rollover Workbench to retrieve the search ID with the corresponding rollover details. You can also use the workbench to identify purchase orders that you do not want to rollover. The system filters these purchase orders out for future iterations of the POROLLVW process.

The next rollover exception option enables you to view which purchase orders are not qualified for rollover.

To view the purchase orders, you run the POROLLEXP process to create the PO Rollover Exceptions report.

You can run the report from within the PO Rollover Workbench, the PO Rollover View page, or the PO

Rollover page, or you can use the Non Qualified PO Listing menu option. The report displays the nonqualified purchase orders and their associated documents. To populate the tables to produce the PO Rollover

Exceptions report, run the PO Rollover view process to select the disqualified orders.

Note. When a purchase order is over expensed and an associated voucher has been deleted, then the rollover

process sets the PO distribution status to Complete.

See Also

Chapter 28, "Creating Purchase Orders Online," page 671

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Pages Used to Rollover Purchase Orders

Page Name

PO Rollover View

Definition Name

RUN_POROLLVW

PO Rollover (purchase order rollover)

Purchase Order Details

POs Not Budget Checked

PO_ROLL_REQ_FIN

PO Rollover1

Budget Check Request

PO Rollover2

Roll Open Encum (roll open encumbrance)

RUN_POROLLO

Run Roll Exception

PO_ROLLOVER

PO_ROLLOVER_LN

RUN_POROLL1

PO_KK_CHECK_REQ

RUN_POROLL2

RUN_ROLL_EXCEPTION

Navigation

Purchasing, Purchase

Orders, Budget Year End

Processing, Request PO

Roll View, PO Rollover

View

Usage

Create a data set for retrieval by the purchase order rollover workbench by initiating the Rollover

View (PO_POROLLVW)

Application Engine process.

Purchasing, Purchase

Orders, Budget Year End

Processing, PO Rollover

Workbench, PO Rollover

Select purchase orders to rollover and change their status to Pending before running the PO Rollover1 process. Check the roll status of purchase orders.

Click the Secondary

Lines button for any row on the PO Rollover page.

View additional details for purchase orders listed on the PO Rollover page.

Click the POs to Budg Chk for Finalizing link on the

Purchase Order Details page.

View details about purchase orders that have yet to reach a budget check status of

Valid, thus enabling requisition finalization.

Purchasing, Purchase

Orders, Budget Year End

Processing, Request PO

Rollover1, PO Rollover1

Run the PO Rollover1 process.

Purchasing, Purchase

Orders, Budget Check,

Budget Check Request

Purchasing, Purchase

Orders, Budget Year End

Processing, Request PO

Rollover2, PO Rollover2

Purchasing, Purchase

Orders, Budget Year End

Processing, Request PO

Roll Open Encum

Run the Commitment

Control Budget Processor process.

Run the PO Rollover2 process.

Run the PO Roll Open

Encum process.

Purchasing, Purchase

Orders, Budget Year End

Processing, Non Qualified

PO Listing

Run the Non Qualified PO

Listing process.

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Creating a Data Set for Retrieval by the Purchase Order Rollover Workbench

Access the PO Rollover View page (Purchasing, Purchase Orders, Budget Year End Processing, Request PO

Roll View, PO Rollover View).

Request PO Roll View (1 of 2)

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208

Request PO Roll View (1 of 2)

Note. It is recommended that you create data sets that are no greater than 1000 rows. Any larger and the

processing times on the purchase order rollover workbench can be substantial.

The PO Rollover View page enables you to limit the information contained in a data set. You use the page to define selection criteria for the PO_POROLLVW process. Along with limiting basic information, such as a business unit, a buyer, or a purchase order, you can limit the data set to ChartField values. For example, you can limit the data set to a specific ChartField or a range of ChartFields.

In addition, you can limit information in data sets using logic operands against a ChartField. These operands include, for example, Begins with,Equal, and Less than. So if you want to include ChartFields for a specific fund affiliate, you would use the In operand. The system displays a General Ledger Business Unit field that you use to select a fund affiliate to include in the data set.

Search ID

Enter a search ID for this data set. The search ID is used to retrieve the data set on the PO Rollover page.

Note. If the search ID is reused for different search criteria, the previously

selected data will be overwritten. PeopleSoft recommends a unique search ID for each different set of search criteria.

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Chapter 8 Using Commitment Control

Roll Status

The following rules apply to purchase order selection:

When you select Rolled and None and a purchase order has both statuses, the line becomes available for selection. All distributions with these statuses appear with the appropriate roll error on the More Details tab on the Purchase Order Details page. The rolled distributions are not included in the rollover processes:

When you select None and a purchase order has distributions that have previously been rolled, only the distributions that have not been rolled appear. The lines are available for selection on the PO Rollover page.

When you select Rolled, any rolled distributions appear on the PO Rollover page, but they are not available for selection there.

Once you select a purchase order and it is in Pending or Mid Roll status, it does not appear again unless you select those specific statuses. You cannot select lines that are in Mid Roll status on the PO Rollover page.

Important! When you select and stage a line for rolling, it is removed from staging if it reappears on the PO

Rollover page, is available for selection, and is not selected for staging again. Therefore, successive applications of the filters on this page should be more restrictive.

None

Pending

Mid Roll

Rolled

Disqualified

Hold from Rollover

Select this check box to find purchase orders that have no other roll status, because they have not yet been selected for rolling, or they have been selected and then removed from the selection process.

Select this check box to find purchase orders that have been selected for rolling.

Select this check box to find purchase orders on which you have run the PO

Rollover1 process. Purchase orders with this header status are protected from all actions except budget checking and rollover. Purchase orders with this status cannot be copied into vouchers.

Select this check box to find purchase orders that have been rolled.

Select this check box to find purchase orders that have been identified during the

PO Rollover1 process as being in error and, therefore, are not eligible to continue the Rollover process. When you want to include disqualified purchase orders, the program does not delete them from the processing results. Selecting this check box is useful for customers who want to see the documents that may require additional work before the year-end roll.

Select to hold the selected purchase orders from rolling over when you know that there is additional work to be done on the order. For purchase orders to be eligible to set to Hold from Rollover, they should be in a roll status of None or

Pending. When purchase orders are in a Hold status they are not qualified for PO

Rollover 1 (PO_POROLL1) or PO Rollover 2 (PO_POROLL2) rollover processing.

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Exception Report

Use this grid box to indicate that you want to run the PO Rollover Exceptions report and to define the sort method for the report.

Run Exception Report

Select to also run the PO Roll Exceptions report when you run the PO Roll View process. Exception types are made up of the rollover error and information associated with the error. For each rollover error type, the report displays the error title and information. Examples of exception types include "Invalid budget status on PO" and "Invalid budget status on PO and voucher."

Exception Type

Purchase Order

Select to sort the PO Rollover Exceptions report by exception type. The system sorts the report first by Search ID and business unit, then by exception type, and finally by purchase order keys.

Select to sort the PO Rollover Exceptions report by purchase order ID. The system first sorts the report by Search ID and business unit, then by purchase order ID, and finally by exception type.

Other Information

Run

Click this button to initiate the PO_POROLLVW process that creates the data set that you can select on the PO Rollover page.

See Also

Chapter 8, "Using Commitment Control," Selecting and Qualifying Purchase Orders for Rollover, page 210

Chapter 8, "Using Commitment Control," Running the PO Rollover1 Process, page 213

Chapter 8, "Using Commitment Control," Running the PO Rollover2 Process, page 214

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining and Using ChartFields,"

Understanding PeopleSoft Enterprise ChartFields

Selecting and Qualifying Purchase Orders for Rollover

Access the PO Rollover page (Purchasing, Purchase Orders, Budget Year End Processing, PO Rollover

Workbench, PO Rollover).

Purchase orders that have been received or partially received, but not yet vouchered are available for selection for purchase order rollover processing on the PO Rollover page. To retain the relationship between the purchase order and the receipt, the PO Rollover2 process updates the purchase order distribution number on the receipt distribution to match the new purchase order distribution number.

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However, if there is one receipt for the purchase order that has been partially vouchered, the PO Rollover page is unable to maintain the relationship between the associated documents. Therefore, the purchase order is not available for selection for purchase order rollover processing. The Roll Status field is set to Part Vchrd

(partially vouchered) and the Roll Error field on the Purchase Order Details page is set to One receipt

partially vchrd (one receipt partially vouchered). A receipt is considered partially vouchered if the sum

(quantity or amount) of all associated vouchers is less than the amount or quantity on the single receipt.

Purchase orders that you selected on the PO Rollover View page appear if they qualify for rollover. Purchase orders that are canceled, fully vouchered, on hold, in process, or that have not been successfully budget checked do not qualify for rollover and do not appear on this page.

Distribution lines do not appear if they are canceled, closed, or fully liquidated (that is, if the commitment control close flag is set to Y), because they are not qualified for rollover.

Important! Once you select a line for rolling and set the status to Pending, use the PO Rollover page to

reselect it if it appears again on this page and is available for selection. Otherwise, the system removes the line from staging.

Business Unit and

Search ID

Run Roll Exception

Finalize Requisition

Select the search criteria then click the Search button. If you select only a business unit, then multiple search IDs will display. If multiple search IDs contain the same purchase order number then that purchase order will display multiple times on the page. If you select a business unit and a search ID, then only the data from the specific search ID will display on the page.

Click to access the Run Roll Exception page where you can define report values for the PO Roll Exception report. This report provides a list of purchase orders that are not qualified for the rollover. The system uses a combination of the user

ID and business unit to determine the run control ID for the report, and you can define the business unit and search ID for the report.

When running the PO Rollover1 process, you can choose to finalize requisitions associated with the purchase orders selected for the process.

To help you prepare for requisition finalization, this field provides the finalization qualification status of the requisition associated with the purchase order that you selected for purchase order rollover processing. Values are:

Not Qualified: Requisition is not qualified for finalization.

No Requisition: There is no requisition associated with the selected purchase order.

Qualified: The associated requisition qualifies for finalization. A requisition qualifies for finalization when all purchase orders with the same requisition key fields have reached a budget check status of Valid.

Not Applicable: The distribution has an associated requisition; however, it has already been rolled.

Note. Requisition finalization in conjunction with the PO Rollover1 process is

not available when the Keep PY Encumbrances Open option is selected for the purchase order.

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Roll Status

Outstanding PO

Encumbrance

Displays the roll status for a purchase order. The roll status is the current state of a purchase order. When rolling over purchase orders, the system budget checks distribution lines against budgets with expiring budget periods and then roll funds over to new budget periods.

Displays the encumbrance balance when commitment control is installed. When you create a purchase order, commitment control liquidates the pre-encumbrance balance from the requisition and establishes an encumbrance for the purchase order. You can view budget details for the purchase order. Click the

Encumbrance Balance link to access the PO Accounting Entries Inquiry where you can select a General Ledger business unit and commitment control ledger group to use as a budget inquiry.

PY Encum Open(prior

year encumbrances open)

Displays whether the prior year remaining encumbrance is open or closed. If Y appears in the field, the encumbrance is closed. If N appears in the field, the prior year remaining encumbrances for the purchase order is open. You can update the value by selecting the purchase order and clicking the PY Encum Open or the PY

Encum Close button.

Click the Secondary Lines button for any row to access the Purchase Order

Details page. Use the Purchase Order Details page to view additional details for the purchase order.

PY Encum Open (prior

year encumbrances open)

Click to keep the prior year remaining encumbrances open for the selected purchase orders. When you click the button, the system displays a Y in the PY

Encum Open field in the Budget Year End Details grid.

Warning!

If you select this option, remaining purchase order encumbrances for the prior year are not liquidated, and cannot be liquidated going forward.

If you select this option, you can perform purchase order rollover in one step using the PO Roll Open Encum process. Purchase order rollover processing can be completed in one step, because budget checking is not required for the prior year's encumbrances before the creation of the distributions for the new budget period.

PY Encum Close(prior

year encumbrances close)

Click to close the prior year remaining encumbrances for the selected purchase orders. When you click the button, the system displays a N in the PY Encum

Open field in the Budget Year End Details grid. If you used the PY Encum Open button to check selected lines, you can undo the selection using this button.

Hold From Rollover

Click to hold the selected purchase orders from rolling over. Purchase orders eligible to be set to Hold from Rollover should be have a roll status of None or

Pending. After you click the button, the system places the selected purchase orders in a Hold status. The system saves your updates when you click Save.

When purchase orders are in a Hold status they are not qualified for PO Rollover

1 or PO Rollover 2 rollover processing.

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Chapter 8

Release Hold

Save

Using Commitment Control

Click to release the selected purchase orders from Hold status. After you click the button, the system places the select purchase orders in a None status and they will become eligible for future rollover processes. Only purchase orders with a

Hold status are updated when you click Save. When in a None status, and a purchase order has distributions that have previously been rolled, only the distributions that have not been rolled appear for the purchase order details. The lines are available for selection on the PO Rollover page.

Select the purchase orders for the rollover processes and then click the Save button. After you click the Save button the system changes the roll status of those purchase order to Pending.

Important! If a purchase order is in multiple data sets and it has been set to a roll

status of Pending from a specific search ID, the status will not display as Pending when you retrieve the other data sets. You will need to recreate the data sets by re-executing PO_POROLLVW to display any updates to the statuses.

Reviewing Purchase Order Details

Access the Purchase Order Details page.

More Details Tab

Select the More Details tab.

POs to Budg Chk for

Finalizing (purchase

orders to budget check for finalizing)

Select to access the POs Not Budget Checked page, where you can view details about purchase orders that have not yet reached a budget check status of Valid.

Bringing the budget check status of these purchase orders to Valid enables the associated requisition to be finalized by the PO Rollover1 process.

Roll Error

Rollover error code. Values are:

IPO: Invalid budget status (purchase order).

IVC: Invalid budget status (voucher).

N: No error.

PV: Invalid budget status (purchase order and voucher).

PVR: Invalid budget status. Purchase order and voucher items received.

R: Rolled.

REC: Items received but not vouchered.

VR: Invalid budget status; voucher and items received.

Running the PO Rollover1 Process

Access the PO Rollover1 page (Purchasing, Purchase Orders, Budget Year End Processing, Request PO

Rollover1, PO Rollover1).

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The PO Rollover1 process adjusts amounts and quantities on current distributions to enable the budget processor to liquidate the selected purchase orders. The process then creates new distribution lines with the rolled amounts and quantities. The new distribution lines are held in a staging table until you run the PO

Rollover2 process. It also returns outstanding amounts and quantities to the corresponding requisition and modifies various flags and statuses in the PO_HDR, PO_LINE_DISTRIB, and PO_LINE_DIST_NP tables in preparation for the Commitment Control Budget Processor process.

Note. You must budget check the purchase orders after you run the PO Rollover1 process and before you

continue to the PO Rollover2 process.

Note. The PO Rollover1 process acts only on purchase orders when the Keep PY Encumbrances Open check

box is clear on the PO Rollover page.

Finalize Requisitions

Select to finalize qualified requisitions associated with the purchase orders selected for processing by the PO Rollover1 process. A requisition qualifies for finalization when all purchase orders containing the requisition key fields have reached a budget check status of Valid.

If this option is selected and a processed requisition does not qualify for finalization, remaining quantities and amounts are returned to the requisition.

Run Exception Report

Click to access the Run Roll Exception page where you can define report values for the PO Roll Exception report. This report provides a list of purchase orders that are not qualified for the rollover. The system uses the run control ID from the PO Rollover1 page to assign the run control ID for the report.

See Also

Chapter 8, "Using Commitment Control," Commitment Control Budget Processor Process in PeopleSoft

Purchasing, page 182

Running the PO Rollover2 Process

Access the PO Rollover2 page.

The PO Rollover2 process breaks the relationship between the rolled purchase order and the prior year's transactions in the commitment control tables and to close all distributions not rolled.

The PO Rollover2 process updates the KK_ROLLED field in the KK_SOURCE_HDR commitment control table to Y for all rolled purchase orders. This update to KK_ROLLED prevents the budget processor from processing and modifying the existing transaction. Instead, the budget processor assigns the purchase order a new transaction ID the next time the rolled purchase order is budget checked. The budget processor bypasses distributions created in prior budget periods.

Once the budget check process is complete, you must run the PO Rollover2 process. The run control page provides the option to complete the rollover process by business unit or by individual purchase orders.

The process closes or cancels the old distribution lines by setting the DISTRIB_LN_STATUS field to C

(completed) or X (canceled). Select X only if the entire amount of the distribution was rolled over. The data held in the staging tables is then inserted into the PO_LINE_DISTRIB and PO_LINE_DIST_NP tables.

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Chapter 8 Using Commitment Control

Note. You must budget check after running the PO Rollover1 process and before continuing to the PO

Rollover2 process.

Note. The new distributions must be budget checked.

See Also

Chapter 8, "Using Commitment Control," Commitment Control Budget Processor Process in PeopleSoft

Purchasing, page 182

Running the PO Roll Open Encumbrance Process

Access the Roll Open Encum page (Purchasing, Purchase Orders, Budget Year End Processing, Request PO

Roll Open Encum).

Note. The process acts only on purchase orders when the Keep PY Encumbrances Open option is selected on

the PO Rollover page.

The PO Roll Open Encum process combines PO Rollover1 and PO Rollover2 processing, along with functionality that keeps rolled remaining encumbrances open in the prior budget year. The process makes changes to the rolled distributions that prevent the budget processor from re-validating and liquidating them in the prior budget year. This functionality enables you to track unexpended amounts by individual purchase orders during a budget period without returning unexpended amounts to the budget.

In one step, the process adjusts amounts and quantities down to what has been vouchered on the distribution and creates new distributions for unvouchered amounts. These actions can be completed in one step, because budget checking rolled distributions in the prior budget year is not required, as the intent of the process is to prevent the liquidation of the remaining encumbrances.

Because budget checking of rolled distributions in the prior budget year is not performed when using this process, finalizing associated requisitions is not an option.

Run the budget processor after the PO Roll Open Encum process to budget check newly created distributions and to create their encumbrances in the new budget period.

From Date/To Date

Budget Date

Enter the range of budget dates assigned to purchase orders that you want to roll into a new budget date.

Enter the new budget date that you want to assign to purchase orders successfully rolled by the process.

Running the Non Qualified PO Listing Process

Access the Run Roll Exception page (Purchasing, Purchase Orders, Budget Year End Processing, Non

Qualified PO Listing).

Use this page to create the PO Rollover Exceptions report. The report displays the non-qualified purchase orders and their associated documents.

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To populate the tables that produce the report, you need to run the PO Rollover View process to create a data set on which to run the report. The report is also available as an XML Publisher report.

You can also access the Run Roll Exception page using the PO Rollover View and PO Rollover 1 pages and by using the PO Rollover Workbench.

Business Unit

Search ID

Exception Type

Purchase Order

Select a business unit upon which to base the include the Exception report when you

Select a search ID. A search ID is made up of a data set that you define on the PO

Rollover View page. The system uses the data set to create the PO Rollover

Exceptions report. The report contains the purchase orders that are not qualified for rolling over.

Select to sort the PO Rollover Exceptions report by exception type. Exception types are the kinds of errors that prevent purchase orders from rolling over. The system sorts the report first by purchase order ID and business unit, then by exception type, and finally by purchase order keys. An example of an exception type is when a budget status on the purchase order is not valid.

Select to sort the PO Rollover Exceptions report by purchase order ID. The system first sorts the report by purchase order and business unit, then by purchase order ID, and finally by exception type.

Establishing Purchasing ChartField Security

To facilitate ChartField Security functionality, Oracle delivers PeopleSoft Purchasing with components that are already set up for use with ChartField security. You can deactivate the settings, modify the settings, or add security for components. ChartFields are the fields that store charts of accounts and provide the system with the basic structure to segregate and categorize transactional and budget data. PeopleSoft Purchasing enables you to secure specific accounts to prevent unauthorized users from viewing or editing financial information. The ChartField Security feature provides the framework for you to define the ChartField security method and configure and maintain security for specific PeopleSoft Purchasing ChartField fields and records.

You can define the security method based on users, roles, and permission lists.

Customers can assign a group of users, roles, or permission lists to a rule in one page using a default effective date. The rule applies to all products. Customers can assign many rules to a user, role, or permission list in one page. Different rules can be assigned to different products for one user.

Chartfields are secured at the distribution level on the purchase order and requisition entry transactions.

Values for ChartFields on the Purchase Order Defaults page for the purchase order header are not secured.

When you create a transaction, the distribution values may default onto the transaction. When you save the transaction, the ChartField security will validate to ensure that the user can create and maintain documents using those secured ChartField values.

By default, most components in PeopleSoft Purchasing are secured when the product itself is enabled. You can activate or inactivate ChartField security for certain Purchasing components that include transactions, such as data entry for purchase orders and requisitions, search lists, inquiries, and prompts.

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Chapter 8 Using Commitment Control

The core system for establishing ChartField security is described in the PeopleSoft Application

Fundamentals 9.1 PeopleBook. Also, the book provides descriptions of the Purchasing components and pages affected by ChartField security.

See PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Securing ChartFields."

See PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Securing ChartFields," Securing

ChartFields for PeopleSoft Enterprise Purchasing.

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Chapter 9

Running Document Tolerances

This chapter provides an overview of document tolerances and discusses how to:

Set up document tolerances.

Run document tolerances with budget checking.

Run document tolerances without budget checking.

Review document tolerance exceptions and overrides.

Understanding Document Tolerances

Document tolerance checking compares the balance of all subsequent documents distributions tied to the requisition distribution based on a tolerance tied to a specific ChartField. The fund code ChartField is usually the one used in the document tolerance checking process. For example, a 100 USD requisition distribution has a fund code 100 which has a 10 percent tolerance. If two purchase orders were entered against this requisitions distribution, one for 50 USD and a second for 75 USD, the first purchase order would pass document tolerance checking but the second purchase order would fail. In this case, the total against the requisitions distribution would be 125 USD exceeding the 10 percent tolerance. If you have the proper authorization, you can override the document tolerance checking and continue processing the purchase order.

You can run the Document Tolerance process either with or without enabling commitment control.

If you enable commitment control and document tolerance for the business unit, and you then initiate budget checking, the system runs the Document Tolerance Checking Application Engine process (FS_DOC_TOL) first and then it runs the Comm Cntrl Budget Processor Application Engine process (FS_BP).

If any amounts, quantities, general ledger business units, or ChartFields are modified on a purchase order after the document tolerance is checked, either manually or using the POCREATE or POCHNG processes, the system resets the document tolerance status to Not Chk'd (not checked).

Setting Up Document Tolerances

The setup for document tolerances is the same for both PeopleSoft Payables and PeopleSoft Purchasing.

See PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Defining Document Tolerances.

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Running Document Tolerances Chapter 9

Running Document Tolerances with Budget Checking

If you enable commitment control and document tolerance for the business unit, you run document tolerance by initiating the Comm Cntrl Budget Processor Application Engine process (FS_BP) on the Maintain

Purchase Order - Purchase Order page. The system runs the Document Tolerance Checking process and then the Comm Cntrl Budget Processor process.

You can check a purchase order document tolerance status on the Maintain Purchase Order - Purchase Order page.

This section discusses how to check document tolerances.

Page Used to Run Document Tolerances with Budget Checking

Page Name

Maintain Purchase Order -

Purchase Order

Definition Name

PO_LINE

Navigation

Purchasing, Purchase

Orders, Add/Update POs,

Maintain Purchase Order -

Purchase Order page

Usage

Enter or change purchase order information online.

Checking Document Tolerances

Access the Maintain Purchase Order - Purchase Order page (Purchasing, Purchase Orders, Add/Update POs,

Maintain Purchase Order - Purchase Order page).

Click the Budget Check button to run the Comm Cntrl Budget Processor process for this purchase order. This button appears only if you have enabled commitment control for PeopleSoft Purchasing and the purchase order has not been subjected to budget checking. This button is not available if you have run the Comm Cntrl Budget Processor process on the purchase order.

If you enable commitment control and document tolerance checking for the business unit and you initiate the budget checking process, the system runs the

Document Tolerance process then the Comm Cntrl Budget Processor process.

Note. You would normally run the Comm Cntrl Budget Processor process as a

batch process using the Budget Check Request page. If you do so and document tolerance checking is enabled for the business unit, you must ensure that the commitment control source transaction definitions for purchase order transactions are defined, so that only purchase orders that have passed document tolerance checking are eligible for budget checking.

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Chapter 9 Running Document Tolerances

Doc Tol Status

(document tolerance status)

If you enable document tolerance checking, the system displays the document tolerance status. Values are:

Valid: The purchase order has passed document tolerance checking.

Not Chk'd (not checked): The purchase order requires document tolerance checking. If any amounts, quantities, or ChartFields are modified after the document tolerance is checked, the system resets the document tolerance status to

Not Chk'd.

Error: Exceptions are generated for the purchase order during document tolerance checking. You can override document tolerance exceptions on the

Document Tolerance Exceptions - Doc To Exception page.

Running Document Tolerances Without Budget Checking

If you do not enable commitment control but enable document tolerance, you initiate document tolerance checking using the Document Tolerance Request page.

This section lists the page used to run document tolerances without budget checking.

Page Used to Run Document Tolerances Without Budget Checking

Page Name

Document Tolerance

Definition Name

DOC_TOL_RUN_CNTRL

Navigation

Purchasing, Purchase

Orders, Verify Document

Tolerance, Document

Tolerance

Usage

Initiate the Document

Tolerance Checking process. The system checks the transaction for document tolerance exceptions.

Reviewing Document Tolerance Exceptions and Overrides

This section discusses how to:

View and override document tolerance exceptions.

View document tolerance override history.

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Running Document Tolerances Chapter 9

Pages Used to Review Document Tolerance Exceptions and Overrides

Page Name

Document Tolerance

Exceptions - Doc Tol

Exception

Document Tolerance

Override - Override Log

Definition Name

DOC_TOL_EXCPT

DOC_TOL_OVR_LOG

Navigation Usage

Purchasing, Purchase

Orders, Review PO

Information, Document

Tolerance Exceptions, Doc

Tol Exception

View and update document tolerance exceptions.

Purchasing, Purchase

Orders, Review PO

Information, Doc Tolerance

Override History, Override

Log

View and update document tolerance exceptions.

Viewing and Overriding Document Tolerance Exceptions

Access the Document Tolerance Exceptions - Doc Tol Exception page (Purchasing, Purchase Orders, Review

PO Information, Document Tolerance Exceptions, Doc Tol Exception).

Exceptions

Rule ID

Displays the rule ID and description of the match rule that produced the exception.

Details

Pred Doc Amt

(predecessor document amount)

Displays the amount of the predecessor document (purchase order).

Life-to-Date Liquidated

Amt (life-to-date

liquidated amount)

Displays the sum total of all source documents (purchase orders) linked to the predecessor document. If you have multiple purchase orders tied to the same requisition, the Document Tolerance process calculates the tolerance against the sum total of all of the purchase orders tied to this requisition rather than the amounts of the individual purchase orders. An individual purchase order may be within the tolerance, but if the sum total of the linked purchase orders exceeds the tolerance, the purchase order will not pass document tolerance checking.

Defined Tolerance

Amount

The tolerance amount that you defined on the Document Tolerance page.

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Chapter 9 Running Document Tolerances

Defined Tolerance

Percentage

Displays the tolerance percent that you defined on the Document Tolerance page.

Note. The system uses whichever value is lower (either the defined amount or the

defined percentage) to calculate the tolerance. If the amount of the source document exceeds the lower defined amount, the purchase order does not pass document tolerance checking and the system generates an exception.

Calculated Doc Amt Tol

Amount (calculated

document amount tolerance amount)

Displays the amount of the source document (purchase order), plus any defined tolerance amount.

Calculated Doc Tol

Percent Amt (calculated

document tolerance percent amount)

Displays the amount of the source document (purchase order), plus any defined tolerance percentage amount.

Displays the amount of the source document (purchase order).

Source Doc Monetary

Amt (source document

monetary amount)

Source Doc Converted

Amt (source document

converted amount)

Displays the converted amount of the source document (purchase order). The system converts the source document to the predecessor document general ledger business unit base currency to calculate the tolerance.

Displays the predecessor document general ledger business unit base currency.

Predecessor GL Base

Currency

Transaction Currency

Displays the currency of the source document (purchase order).

Override

Select to override this exception and make the transaction available for further processing.

Viewing Document Tolerance Override History

Access the Document Tolerance Override - Override Log page (Purchasing, Purchase Orders, Review PO

Information, Doc Tolerance Override History, Override Log).

The fields on this page are the same as the fields on the Document Tolerance Exceptions - Doc Tol Exception page except for User ID and DateTime, which provide an audit trail of exceptions that have been overridden.

User ID

DateTime

Displays the user who overrode this exception on the Document Tolerance

Exceptions - Doc Tol Exception page.

Displays the date and time that the designated user overrode this exception on the

Document Tolerance Exceptions - Doc Tol Exception page.

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Chapter 10

Using Entry Events

This chapter provides an overview of entry events in PeopleSoft Purchasing and discusses how to:

Set up PeopleSoft Purchasing entry events.

Generate PeopleSoft Purchasing entry events.

Drill down to the general ledger to view entry event journal entries.

Understanding Entry Events in PeopleSoft Purchasing

Entry events are shorthand codes that are assigned to a transaction's distribution lines and enable you to post accounting entries to the general journal with minimal end-user input. Entry events post standard and supplemental accounting entries to the general ledger. These are based on accounting lines generated during budget checking or document posting.

Entry events are used to satisfy federal accounting requirements. PeopleSoft Purchasing is delivered with a set of entry event codes, and you can define additional entry event codes if necessary.

Entry events are enabled using the Installation Options component.

If you choose not to enable entry events, the Entry Event field does not appear on the pages.

If the use of entry events is optional, any default value set at the business unit level appears but can be overridden.

If the use of entry events is required, the Entry Event field appears, business unit defaulting occurs, and an error appears if the field is left blank when you save the page.

You can override the default value but cannot leave the field blank.

PeopleSoft uses a common function to process entry events for PeopleSoft General Ledger, PeopleSoft

Payables, PeopleSoft Purchasing, PeopleSoft Receivables, and PeopleSoft Billing.

Note. For requisitions and purchase orders, you must use commitment control to generate entry event

transactions.

The processor is accessed through run control components for requisitions, purchase orders, and receipts.

The event entries that you generate can be viewed using the accounting line entries components. Drillback into the general ledger is provided through EE Journal Entries inquiries.

PeopleSoft Purchasing supports entry events in these areas:

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Using Entry Events Chapter 10

Requisitions

If there is a default entry event code for the PeopleSoft Purchasing business unit, then this default automatically populates on the header defaults, line defaults, and the distribution line levels. Users can override the business unit default value at any of these levels.

Entry event codes are defined by account codes, and the appropriate account code automatically populates whenever an entry event code is used and no other account code already exists.

Requisition loader

When you run the Requisition Loader process, entry events found in the requisition loader defaults override entry event defaults found at the business unit level or on the Requisition Loader page.

Purchase order

If you select entry event defaults at the business unit level, they appear by default to the header and distribution levels, where the user can override them.

If the Account field is blank, the default account for that particular entry event appears. If the Account field is not blank, it is not overridden by the account tied to the entry event.

Maintain distribution

Users can also enter an entry event directly on the Maintain Purchase Order - Distributions for Schedule page.

Purchase order express

Entry events function on the Express Purchase Order - Purchase order page in the same manner as on the

Maintain Purchase Order - Purchase Order and Maintain Purchase Order - Schedules pages.

Procurement cards

Any applicable entry event default value appears on the Procurement Card Limits and Restrictions page, and on the Account Distribution page. This entry event is carried over to PeopleSoft Payables through the

Voucher Stage process.

Receipt accrual

The user has the option of using the default value or overriding it on the Receipt Accrual page. If the user selects override, the entry event specified always overrides any default value.

AutoSelect process

The Auto Select process enables you to source the organization requisitions automatically. The process also passes the entry event from the requisition to the staging area.

Build Inventory Demand process

If the Build Inventory Demand process results in the creation of a purchase order, the entry event is passed to the staging area.

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Chapter 10 Using Entry Events

PO Calculations and Create Purchase Orders processes

The purchasing system uses the PO Calculation and Create Purchase Orders processes to source requisitions to purchase orders. They also pass the entry event from the requisition to the purchase order.

The Create Purchase Orders process validates the entry event code from the requisition. If that entry event code is not valid for the purchase order, the Create Purchase Orders process overrides the value with the entry event code defined at the business unit level for purchase orders.

The Entry Event Generator process (FS_EVENTGEN) processes entry events for all PeopleSoft products that use entry events, which include PeopleSoft General Ledger, PeopleSoft Payables, PeopleSoft

Purchasing, PeopleSoft Receivables, and PeopleSoft Billing.

PeopleSoft Purchasing users access the process through components specific to requisitions, purchase orders, and receipts. The process uses setup data to create additional accounting transactions in a separate accounting record.

This diagram shows the entry event process flow:

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Using Entry Events Chapter 10

228

Entry event process flow

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Chapter 10 Using Entry Events

See Also

Chapter 10, "Using Entry Events," Selecting Entry Event Defaults, page 231

Chapter 28, "Creating Purchase Orders Online," Entering Distribution Information, page 768

Chapter 11, "Managing Procurement Cards," Running the Voucher Load Process, page 302

Chapter 35, "Reviewing Purchase Order Information," Reviewing Purchase Order Accounting Line Entries, page 1029

Chapter 25, "Reviewing Requisition Information," Reviewing Requisition Accounting Line Entries, page 605

Chapter 29, "Using Purchase Order Sourcing," Automatically Selecting Requisitions for Sourcing, page 830

Chapter 29, "Using Purchase Order Sourcing," Building Inventory Demand Transactions, page 840

Chapter 29, "Using Purchase Order Sourcing," Creating Purchase Orders Using the Create Purchase Orders

Process, page 880

Chapter 29, "Using Purchase Order Sourcing," Running the PO Calculations Process, page 844

Chapter 41, "Using Receipt Accrual," page 1189

Chapter 41, "Using Receipt Accrual," Viewing Receipt Accrual Accounting Line Entries, page 1198

Chapter 20, "Using the Requisition Loader," Reviewing and Correcting Purchasing Requisition Loader

Process Data Errors, page 527

Chapter 10, "Using Entry Events," page 225

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Using Requisition Loader Defaults and Overrides

Setting Up PeopleSoft Purchasing Entry Events

This section discusses how to:

Enable entry events for PeopleSoft Purchasing.

Select entry event defaults.

Entry event codes are delivered for PeopleSoft Purchasing. In addition, PeopleSoft enables you to define your own entry event codes.

Note. In PeopleSoft Purchasing, the Entry Event Generator process generates entry events for nonactuals

transactions (pre-encumbrances and encumbrances) by selecting transaction rows from the commitment control detail ledger group. To enable this, you must select the commitment detail ledger for the commitment control detail ledger group when you assign commitment control ledger groups to a business unit and a general ledger detail ledger group using the Ledgers for A Unit component.

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229

Using Entry Events

See Also

Chapter 10, "Using Entry Events," page 225

Chapter 10

Pages Used to Set Up PeopleSoft Purchasing Entry Events

Page Name

Ledgers for a Unit -

Definition

Ledgers for a Unit -

Commitment Control

Options

Entry Event

Entry Event Defaults

Definition Name

BUSINESS_UNIT_LED1

BUSINESS_UNIT_LED5

INSTALLATION_EE

BUS_UNIT_PM_EE

Navigation

Set Up Financials/Supply

Chain, Business Unit

Related, General Ledger,

Ledgers For A Unit,

Definition

Usage

Select the general ledger detail ledger group for which you want to enable commitment control.

Set Up Financials/Supply

Chain, Business Unit

Related, General Ledger,

Ledgers For A Unit,

Commitment Control

Options

Enable commitment control for a business unit and general ledger detail ledger group.

Set Up Financials/Supply

Chain, Install, Installation

Options

Click the Entry Event link in the General Options group box.

Select purchasing entry events for purchase orders, requisitions, and procurement cards.

Setup Financials/Supply

Chain, Business Unit

Related, Purchasing,

Purchasing Definition

Click the Entry Event

Defaults link on the

Purchasing Definition -

Business Unit Definition page.

Select default entry events at the business unit level.

Note. The link does not appear unless entry events are enabled.

Enabling Entry Events for PeopleSoft Purchasing

Access the Entry Event page (Set Up Financials/Supply Chain, Install, Installation Options, and click the

Entry Event link in the General Options group box).

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Chapter 10

Purchasing

Using Entry Events

Select the entry event option for PeopleSoft Purchasing. Values are:

No EE (no entry event): Entry events cannot be used. Entry event fields will be hidden.

Optional: Entry events can be used but are not required. Entry event fields appear. Default entry event codes appear.

Required: You must use entry events. If the Entry Event field appears on a page, you must select a value or an error appears when you save the page.

Selecting Entry Event Defaults

Access the Entry Event Defaults page (Setup Financials/Supply Chain, Business Unit Related, Purchasing,

Purchasing Definition , and click the Entry Event Defaults link on the Purchasing Definition - Business Unit

Definition page).

Select from the available options to choose default entry event codes for purchase orders, requisitions, and procurement cards. Before selecting a default, you may need to review the defined codes.

See Also

Chapter 10, "Using Entry Events," Setting Up PeopleSoft Purchasing Entry Events, page 229

Generating PeopleSoft Purchasing Entry Events

This section discusses how to generate PeopleSoft Purchasing entry events.

Note. PeopleSoft Purchasing enables you to access the Entry Event component on three menus: Requisitions,

Purchase Orders, and Receipts.

Page Used to Generate PeopleSoft Purchasing Entry Events

Page Name

Entry Event Run Request

Definition Name

PST_EE_RUN_REQUEST

Navigation

Purchasing,

Requisitions, Entry

Event Request

Purchasing, Purchase

Orders, Entry Event

Request

Purchasing, Receipts,

Entry Event Request

Usage

Run the Entry Event

Generator Application

Engine process

(FS_EVENTGEN).

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Using Entry Events Chapter 10

Generating PeopleSoft Purchasing Entry Events

Access the Entry Event Request page (Purchasing, Requisitions, Entry Event Request).

Note. Budget checking must be run before entry events are generated for purchase orders or requisitions.

Process Request Parameters

Request ID

Description

Entry Event Process

Process Option

Enter an identifier for the request.

Enter a description of the request.

Select the process for which you want to generate entries. This field is required.

The entry event generator determines whether each selected document is eligible for the process, based on the entry event code assigned to the document.

Values are:

PO Purchase Order (PO Purchase Order posting)

Requisition Posting

Receipt Accrual

Select the process options based on the entry event process that you selected.

Values are:

All Units: All business units.

Document: A document that you select in the Selection Criteria group box.

Unit: A business unit you select in the Selection Criteria group box.

Selection Criteria

You can use these fields to limit the process to one business unit or one document. The documents available for the Document field depend on the selection in the Entry Event Process field.

Drilling Down to the General Ledger to View Entry Event Journal

Entries

This section lists the pages used to drill down to the general ledger system to view entry event journal entries.

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Chapter 10 Using Entry Events

Pages Used to Drill Down to the General Ledger to View Entry Event Journal

Entries

Page Name

PO Purchase Order

Drillback (purchase order purchase order drillback)

Definition Name

EE_PO_DRILL

PO Requisition Drillback

EE_REQ_DRILL

PO Receipt Accrual

Drillback

EE_RCV_DRILL

Navigation Usage

Purchasing, Purchase

Orders, Review PO

Information, EE Journal

Entries, PO Purchase Order

Drillback

Drill down to the general ledger and view entry event journals for the purchase orders.

Purchasing, Requisitions,

Review Requisition

Information, EE Journal

Entries, PO Requisition

Drillback

Drill down to the general ledger and view entry event journals for the requisitions.

Purchasing, Receipts,

Review Receipt

Information, Entry Event

Journal Drill Down, PO

Receipt Accrual Drillback

Drill down to the general ledger and view entry event journals for the receipts.

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233

Part 2

Using Procurement Cards

Chapter 11

Managing Procurement Cards

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235

Chapter 11

Managing Procurement Cards

This chapter provides an overview of the procurement card business process and discusses how to:

Set up procurement card installation options.

Establish procurement card security.

Define cardholder profile.

Define card issuers.

Define preferred vendors.

Define preferred unit of measure (UOM).

Define merchant category code (MCC) blocked.

Define Visa transaction type codes.

Define procurement card mapping.

Set up procurement card load statement options.

Stage procurement card statements using PeopleSoft Integration Broker.

Stage procurement card statements in a flat file format.

Using the credit card data enterprise integration point (EIP).

Using the Procurement Card Load EIP.

Stage standard delivered bank format statements.

Handle statement staging errors.

Load procurement card statements to application tables.

Run the Bank Statement Workflow Application Engine process (PO_CCSTMT_WF).

Reconcile procurement card transactions manually.

Run the Grace Period Expired Application Engine process (PO_CCEXP_WF).

Resolve disputed transactions.

View the statement summary.

Stage procurement card transactions for voucher processing.

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Managing Procurement Cards

Analyze procurement card information.

Chapter 11

Understanding the Procurement Card Business Process

The procurement card feature supports credit card purchases made by card holding employees in your organization and enables you to reduce the number of small purchases that go through your procurement department. You must have PeopleSoft Payables installed to implement the procurement card feature in

PeopleSoft Purchasing.

This diagram illustrates the basic flow of the procurement card business process from staging the electronic procurement card statement to the application tables through to the voucher staging table.

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Chapter 11 Managing Procurement Cards

Procurement card business process flow

Common Elements Used in This Chapter

Display Unmasked Card

Number

Select this check box if you want to show the full credit card number on the page or report. This check box appears cleared by default. This check box will only appear on a page if you are associated with a role that has Unmask Card Number rights for procurement cards.

Note. This field pertains to role of the user accessing the page.

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Managing Procurement Cards Chapter 11

Card Issuer

Card Number

Select the card issuer. In most cases, this is the name of the bank that issues the card.

Enter the procurement card account number. After you enter the full card number the system will encrypt the card number and display the masked card number in this field. For example, if you enter 6755-8867-6666-6755, the system will display ************6755 as the masked card number. The number of digits that are visible for the card number is based on the Number of Digits to Display field setting you specify on the Installation Options - Purchasing page.

To modify the encrypted card number, you can enter a full card number again or modify just the visible digits.

For more information about PeopleSoft encryption technology see "Encrypting

Text With PSCipher" and "Securing Data with PeopleSoft Encryption

Technology" in the Enterprise PeopleTools PeopleBook: Security

Administration.

Plus, you can perform a partial search on the card number field. The maximum number of digits that you can perform a partial search against is based on the

Number of Digits to Display field setting as well. For example, if the number of digits to display is 4, and you enter 1234 in the card number field, the system will use %1234 to search for the corresponding card numbers. The system compares against the right most digits. If you enter 12345 the system won't be able to find any corresponding card number matches.

If there are multiple cards with the same suffix and they are owned by the same employee, then the employee ID and name will appear in the header of the page.

However, if they are owned by different employees, then employee ID and name will not appear.

Billing Amount

Location

Amount and associated currency billed for the statement line.

Location to which payment for the selected lines is to be distributed.

Merchant

Source of the purchased goods or services.

PO Qty (purchase order

quantity)

Displays the purchase order quantity of each item purchased for this statement line. If there's no purchase order associated with the statement or the quantity is unknown, the purchase order quantity automatically changes to 1.

Posted Date

Displays the date when each statement line has been processed and posted by the card issuer.

A PeopleSoft user who has access rights to procurement card transactions.

Proxy

Reference/Reference

Number

Role

Unique number captured by the merchant at the point of sale to help identify the transaction.

A procurement card role carries a unique set of access rights.

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Chapter 11 Managing Procurement Cards

Role Name

Ship To

Statement Status

Select the role name that you want to filter the report by. The roles available for selection, are those roles that belong to the current user that also have cards assigned to them. It does not include those roles that have no cards assigned to them.

Address to which the goods that you purchased were shipped. Used to identify applicable taxes if you decide to have the system calculate the sales or use tax for the statement.

Statement line status. Values are:

Staged: Statement from the bank is loaded into the staging tables by the Load

ProCard Stage process.

Initial: Statement has been staged in the statement table and the cardholders have been notified through the Bank Statement Workflow process. After each notice has been successfully sent to a cardholder, the system updates its status to Initial if it was Staged.

Verified: Statement is waiting to be reviewed. After verification, the statement line status changes to Approved. Currently, the verified status does not have any significant meaning by itself. However, it can be used in an environment where tighter control is required. The cardholder can only set the status to Verified and another person has to approve it and set the status to Approved.

Approved: Statement is ready to be picked up by the voucher process. Only those statement lines that are approved are pushed to the voucher staging tables.

Closed: Statement has been pushed to the voucher staging table.

Not Closed: Any transactions that are not in the voucher staging table.

Error: Procurement card transaction that failed voucher edit.

Tax Code

Transaction Amount

A set of tax authorities that comprises all taxes that apply within a particular geographical location. In this US, tax codes are state, country, city, and other special jurisdictions. This field is informational on the procurement card transaction.

Amount of the purchase and the source amount (in its local currency) charged by the vendor. The amount and currency may be different than the billing amount and currency that the cardholder is liable to pay.

Trans Date (transaction

date)

VAT (value-added tax)

Date when the goods were purchased.

A tax on the estimated market value added to a product or material at each stage of its manufacture or distribution.

Note. The VAT values that are recorded throughout the procurement card life

cycle pass into the invoice and VAT reporting structures.

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241

Managing Procurement Cards Chapter 11

See Also

Chapter 11, "Managing Procurement Cards," Establishing Procurement Card Security, page 242

Chapter 11, "Managing Procurement Cards," Setting Up Procurement Card Installation Options, page 242

Setting Up Procurement Card Installation Options

This section lists the page used to set up your procurement card installation options.

Note. Before you can use the procurement card functionality, you must first set up your procurement card

installation options. These options determine procurement card controls that are used throughout the procurement card life cycle.

Page Used to Set Up Procurement Card Installation Options

Page Name

Installation Options -

Purchasing

Definition Name

INSTALLATION_PO

Navigation

Set Up Financials/Supply

Chain, Install, Installation

Options, Purchasing

Usage

Define general purchasing controls, such as autonumbering parameters, maximum quantities for quantity price breaks, and the maximum number of rows that are to appear in scroll areas; define requisition loader parameters, such as maximum lines loaded; and define procurement card controls, such as the number of digits that are to appear for a procurement card.

See Also

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Setting Installation Options for

PeopleSoft Applications," Defining Purchasing Installation Options

Establishing Procurement Card Security

This section provides an overview of procurement card security and discusses how to:

Assign users to procurement card roles.

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Chapter 11

Register procurement card roles.

Assign access rights to procurement card roles.

Assign proxy roles for different procurement cards.

Set up universal SpeedCharts.

Assign universal SpeedCharts to multiple procurement cards.

Managing Procurement Cards

Understanding Procurement Card Security

The procurement card functionality enables your organization to define user roles and user-role access throughout the procurement card process. With increased role security, you can control the level of information that is accessed by users, manage the assignments of different procurement cards, and setup proxies and default accounting distributions. PeopleSoft delivers six procurement card roles and several predefined access rights with the system, so that you can establish your organizational role and role access parameters easily.

You do not need to use the predefined procurement card roles that PeopleSoft Purchasing provides. You can establish your own roles that match your environment. PeopleSoft Purchasing delivers these predefined roles so that you can quickly begin using the procurement card functionality.

For backward compatibility during upgrade, the system converts your existing proxies and assigns them to the procurement card administrator role. You can view this system conversion using the Assign Proxies page in

PeopleSoft Purchasing. In addition, to complete the proxy assignment you must manually assign each proxy

(PeopleSoft user) using PeopleTools security functionality to the procurement card administrator role

(CC_ADMINISTRATOR). This is done using the User Profiles - Role page.

See Chapter 11, "Managing Procurement Cards," Assigning Users to Procurement Card Roles, page 245.

See Chapter 11, "Managing Procurement Cards," Assigning Proxy Roles for Different Procurement Cards, page 248.

PeopleSoft Predefined User Roles

PeopleSoft delivers the following predefined user roles with the system: Administrator, Approver,

Reconciler, Reviewer, PO User (purchase order user), and Req User (requisition user).

Pages Used to Establish Procurement Card Security

Page Name

User Profiles - Roles

Definition Name

USER_GENERAL

Navigation Usage

PeopleTools, Security, User

Profiles, User Profiles, User

Profiles - Roles

Assign users to procurement card roles.

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Managing Procurement Cards

Page Name Definition Name

Register Procurement Card

Roles

CC_ROLE

Procurement Card Access

Rights

Assign Proxies

CC_RIGHTS1

Select Procurement Cards CC_PROXY_BY_USER1

Assign Proxies CC_PROXY_COPY

Copy/Move Exceptions

CC_PROXY_BY_USER2

SpeedChart

Assign SpeedCharts

CC_PROXY_BY_USER

SPEEDCHART

CC_ASSIGN_SPEEDCH

Chapter 11

Navigation

Purchasing, Procurement

Cards, Security, Register

Roles, Register

Procurement Card Roles

Usage

Identify roles for the procurement card module.

You can create your own

PeopleSoft roles for the procurement card module.

After registering them here on this page, they can be used in the procurement card module.

Purchasing, Procurement

Cards, Security, Assign

Access Rights, Procurement

Card Access Rights

Assign individual access rights for each procurement card role.

Purchasing, Procurement

Cards, Security, Assign

Proxies

Each PeopleSoft user who is a member of a procurement card role can be assigned to multiple cards with different roles.

Click the Select

Procurement Cards link on the Assign Proxies page or the Assign SpeedCharts page.

Search and assign additional procurement cards to the proxy user.

Click the Copy to or Move to buttons on the Assign

Proxies page

(CC_PROXY_BY_USER).

Select the user you want to copy to or move to the proxy role. This user will acquire the proxy role for the procurement cards selected in the Assign

Proxies page.

Click the OK button on the

Assign Proxies page

(CC_PROXY_COPY).

Review and override copy or move exceptions from one proxy user to another.

Define SpeedCharts.

Setup Financials/Supply

Chain, Product Related,

Procurement Options,

Management, SpeedChart

Purchasing, Procurement

Cards, Security, Assign

SpeedCharts

Assign SpeedCharts for each procurement card.

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Chapter 11 Managing Procurement Cards

Page Name

Assign Proxies

Definition Name

CC_CARD _DATA4

Navigation Usage

Purchasing, Procurement

Cards, Definitions,

Cardholder Profile,

Cardholder Profile - Card

Data

Click the Proxies link on the

Cardholder Profile - Card

Data page.

Assign users (proxies) and the role associated with the selected cardholder.

See Also

"Securing Data with PeopleSoft Encryption Technology" and "Encrypting Text With PSCipher," Enterprise

PeopleTools PeopleBook: Security Administration

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Setting Installation Options for

PeopleSoft Applications," Defining Purchasing Installation Options

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Securing Your System," Understanding

PeopleSoft Application Security

Assigning Users to Procurement Card Roles

Access the User Profiles - Role page (PeopleTools, Security, User Profiles, User Profiles, User Profiles -

Roles).

See Also

Enterprise PeopleTools PeopleBook: Security Administration

Register Procurement Card Roles

Access the Register Procurement Card Roles page (Purchasing, Procurement Cards, Security, Register Roles,

Register Procurement Card Roles).

When you register user roles, the system links those roles to the procurement card module.

See Also

PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Securing Your System," Understanding

PeopleSoft Application Security

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245

Managing Procurement Cards Chapter 11

Assigning Access Rights to Procurement Card Roles

Access the Procurement Card Access Rights page (Purchasing, Procurement Cards, Security, Assign Access

Rights, Procurement Card Access Rights).

246

Procurement Card Access Rights page

Use this page to link access rights to procurement card roles. Access rights determine how users access different components in the procurement card module.

Review Statement

Access Reports

Select this check box to give this role

— users

— the access rights to review the statement only. With this right, this role has no authority to modify the statement.

Select this check box to give this role

— users

— the access rights to run procurement card reports.

Reconcile - Set Status to

Staged

Select this check box to give this role

— users

— the access rights to change the status of the statement to 0 - Staged.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 11 Managing Procurement Cards

Reconcile - Set Status to

Verified

Select this check box to give this role

— users

— the access rights to change the status of the statement to 2 - Verified.

Note. Once the status is set to Verified and the reconciler saves and exist the

page, the statement can no longer be modified.

Users cannot change the status of any transaction that is already set to Verified,

Approved, or Closed. For transactions that need to be reverified, users with approval rights must set their status to Staged.

Reconcile - Set Status to

Approved

Select this check box to give this role

— users

— the access rights to change the status of the statement to 3 - Approved.

Note. Once the status is set to Approved and the approver saves and exits the

page, the statement can no longer be modified.

Reconcile - Update

Distribution (Restricted)

Select this check box to give this role

— users

— the access rights to update the distribution by selecting one of the predefined SpeedCharts that are assigned to this card.

Reconcile - Update

Distribution

(Unrestricted)

Reconcile - Modify

Staged Transactions

Reconcile - Modify

Verified Transactions

Select this check box to give this role

— users

— the access rights to update the distribution by selecting one of the predefined SpeedCharts that are assigned to this card or by entering the ChartField information manually.

Select this check box to give this role

— users

— the access rights to modify transactions that are not verified or approved.

Select this check box to give this role

— users

— the access rights to modify transactions that are not approved.

Reconcile - Modify

Approved Transactions

Select this check box to give this role

— users

— the access rights to modify transactions that are approved.

Reconcile - Modify

Error Transactions

Select this check box to give this role

— users

— the access rights to resolve transactions that failed the voucher edit.

Unmask Card Number

Select this check box to give this role

— users

— the access rights to view the full credit card number.

Plus, with this right, you have the option of printing the full credit card number on any of the procurement card reports or displaying it on any of the procurement card inquiry pages.

Note. The full credit card number always appears in the following components:

Assign Proxies, Assign SpeedCharts, and Cardholder Profile.

Cardholder - Maintain

Profile

Select this check box to give this role

— users

— the access rights to modify any information on the Card Data page in the Cardholder Profile component.

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Managing Procurement Cards Chapter 11

Cardholder - Maintain

Proxy

Select this check box to give this role

— users

— the access rights to add, change, or delete proxy assignments in the Cardholder Profile component.

Cardholder - Maintain

Distribution

Select this check box to give this role

— users

— the access rights to add, change, or delete accounting distribution assignments in the Cardholder Profile component.

Usage - Use

Procurement Card on

Requisition

Select this check box to give this role

— users

— the access rights to assign a procurement card as a payment method when creating a requisition.

Usage - Use

Procurement Card on

PO (usage - use

procurement card on purchase order)

Select this check box to give this role

— users

— the access rights to assign a procurement card as a payment method when creating a purchase order.

Usage - Allow Override of Vendor Card

Select this check box to give this role

— users

— the access rights to override a vendor card that was previously entered for a purchase order. The vendor card appears by default from the vendor profile and this role has the rights to override that value if the vendor is also set to allow override.

Assigning Proxy Roles for Different Procurement Cards

Access the Assign Proxies page (Purchasing, Procurement Cards, Security, Assign Proxies).

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Chapter 11 Managing Procurement Cards

Assign Proxies page

Requester Default

Buyer Default

Apply

Select this check box if you would like this procurement card to appear as the default when defining the requestor on the Requestor Setup page. The selection you make here also appears on the Requestor Setup page. Establishing it here accomplishes the same thing as establishing it on the Requestor Setup page.

The selection you make here will also appear on the Cardholder Profile - Card

Data: Assign Proxies page.

Note. This field will only appear if this proxy user has also been set up as a

requester using the Requester Setup page.

Select this check box if you would like this procurement card to appear as the default when defining the buyer on the Buyer Setup page. The selection you make here also appears on the Buyer Setup page. Establishing it here accomplishes the same thing as establishing it on the Buyer Setup page.

The selection you make here will also appear on the Cardholder Profile - Card

Data: Assign Proxies page.

Note. This field will only appear if this proxy user has also been set up as a buyer

using the Buyer Setup page.

Click this button to apply the same role to multiple procurement cards for the proxy user.

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Managing Procurement Cards

Delete

Copy to

Move to

Chapter 11

Click this button to remove selected cards from the current proxy user. This proxy user can no longer access transactions for those cards.

Click this button to copy access rights to another user.

Click this button to transfer access rights to another user.

When you move access rights to another user, the system copies the procurement card list from the current user to the target user and removes the cards from the original user list.

Note. All cards that are assigned (moved or copied) to the target user with

different roles are identified as exceptions. You can override exceptions on the

Exceptions page.

Setting Up Universal SpeedCharts

Access the SpeedChart page (Setup Financials/Supply Chain, Product Related, Procurement Options,

Management, SpeedChart).

See Also

PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Defining SpeedCharts

Assigning Universal SpeedCharts to Multiple Procurement Cards

Access the Assign SpeedCharts page (Purchasing, Procurement Cards, Security, Assign SpeedCharts).

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Chapter 11 Managing Procurement Cards

Assign SpeedCharts page

SpeedChart Key

Select Procurement

Cards

Click the associated link to view the details of SpeedCharts within a given setID.

When you click this link the SpeedChart Detail page appears.

Select this link to assign additional procurement cards to the SpeedChart. When you click this link the Select Procurement Cards page appears.

Note. Since SpeedCharts are driven by setID, the available list of cardholders and cards are limited to

business units that are tied to the same setID.

Defining Cardholder Profile

To define cardholder profiles, use the Cardholder Profile component (CC_EE_PROFILE).

This section provides an overview of the Personal Employee Enterprise Integration Point (EIP) and discusses how to:

View cardholder personal data.

Define cardholder card data.

Define vendor card vendors.

Define proxies.

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Managing Procurement Cards

Define default account distributions.

Restrict cardholder purchases by commodity code.

Chapter 11

Understanding the Personal Employee EIP

The employee accessible in this setup may be a result of an interface with PeopleSoft Human Resources or another external human resources package. The external interface is created by using the personal employee

EIP. The interface within PeopleSoft is accomplished using the Load Employee Data page.

You can also receive employee procurement card data from PeopleSoft Human Resources. These EIPs enable

PeopleSoft Expenses and PeopleSoft Purchasing to send and receive basic cardholder data to and from

PeopleSoft Human Resources. When one application changes a record, an EIP automatically updates and synchronizes tables in the other applications.

This table lists service operations that contain code used to send and receive information between the databases:

Service Operation

CORPORATE_CARD_DATA_FU

LLSYNC

Records

CC_CARD_DATA_EX

Description

Full data load of employee corporate card account data.

CORPORATE_CARD_DATA_SY

NC

CC_CARD_DATA_EX

CORPORATE_CARD_FULLSYN

C

CC_CARD_TBL_EX

CORPORATE_CARD_SYNC CC_CARD_TBL_EX

Incremental update of corporate card account data.

Full data load of corporate card vendors.

Incremental update of corporate card vendors.

See Also

PeopleSoft Enterprise Expenses 9.1 PeopleBook, "Integrating With Other PeopleSoft Products"

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Chapter 11 Managing Procurement Cards

Pages Used to Define Cardholder Profile

Page Name

Personal Data

Definition Name

CC_PERSONAL_DATA

Card Data

Vendors

Assign Proxies

Default Accounting

Distribution

SpeedChart Detail

Restricted Purchase

Cardholder Information

CC_CARD_DATA

CC_CARD_DATA5

CC_CARD_DATA4

CC_CARD_DATA2

CC_SPEEDCH_DTL

CC_CARD_DATA3

RUN_POY8000

Navigation Usage

Purchasing, Procurement

Cards, Definitions,

Cardholder Profile, Personal

Data

View cardholder information, such as personnel status and home address. This is a displayonly page and is shared by

PeopleSoft Expenses and

PeopleSoft Purchasing.

Purchasing, Procurement

Cards, Definitions,

Cardholder Profile, Card

Data

Enter card issuer, card number, and set the transaction limits for that card.

Click the Vendors link on the Card Data page.

Define vendors and the card options for these vendors.

Click the Proxies link on the

Card Data page.

Define who can access this procurement card and identify the rights that they have.

Click the Default Distrib

(default distribution) link on the Card Data page.

Enter accounting distribution defaults for single-line distribution or assign SpeedCharts for multiline distributions.

Click the Show SpeedChart link on the Default

Accounting Distribution page.

View the details of the

SpeedChart.

Click the Commodity Codes link on the Card Data page.

Set restrictions on the card by limiting the amount that the cardholder can spend on a specific commodity.

Purchasing, Procurement

Cards, Reports, Cardholder

Information

Run the Cardholder

Information multiprocess job (POY8000). This process will generate the

Cardholder Information

Crystal report (POY8000).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

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Managing Procurement Cards

Page Name

Purchase Exceptions

Definition Name

RUN_POY8010

MCC Exceptions (merchant category code exceptions)

RUN_POY8064

Chapter 11

Navigation

Purchasing, Procurement

Cards, Reports, Purchase

Exceptions

Purchasing, Procurement

Cards, Reports, MCC

Exceptions

Usage

Run one of these multiprocess jobs: Exceed

Limit-Per-Trans (POY8010) which will generate the

Exceed Limit-Per-Trans

Crystal report (POY8010),

Exceed Limit-Per-Cycle

(POY8011) which will generate the Exceed Limit-

Per-Cycle Crystal report

(POY8011), Exceed Trans-

Per-Day (POY8012) which will generate the Exceed

Trans-Per-Day Crystal report (POY8012), Exceed

Trans-Per-Cycle

(POY8013) which will generate the Exceed Trans-

Per-CycleCrystal report

(POY8013), or

Unauthorized Commodity

(POY8014) which will generate the Unauthorized

Commodity Crystal report

(POY8014).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

Run the MCC Exceptions multiprocess job

(POY8064). This process will generate the MCC

Exceptions Crystal report

(POY8064).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

Viewing Cardholder Personal Data

Access the Personal Data page (Purchasing, Procurement Cards, Definitions, Cardholder Profile, Personal

Data).

Personnel Status

Displays the cardholder personnel status, such as employee, consultant, contractor, or any other designation that your organization uses. Appears by default from human resources and cannot be changed.

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Chapter 11

Telephone

Displays the cardholder home telephone number.

Managing Procurement Cards

Defining Cardholder Card Data

Access the Card Data page (Purchasing, Procurement Cards, Definitions, Cardholder Profile, Card Data).

Card Data

Select the Card Data tab.

Card Issuer

Card Type

Select the procurement card issuer.

Select the card type for this procurement card.

Additional Information

Select the Additional Information tab.

Vendor Card

Vendors

Select this check box if this card is a vendor card. Once you select this check box the Vendors link becomes available.

Click this link to access the Vendors page. Use this page to assign the vendor and card options for this vendor card.

This will simultaneously update the vendor location with the same data (like requestor in assign proxies). This relationship can be maintained in either place.

Credit Limits

Select the Credit Limits tab.

Note. The fields on this tab are only used for reporting purposes.

Maximum Credit Limit

(Optional) Enter the maximum credit limit for the credit card.

Monthly Credit Limit

(Optional) Enter the maximum amount that a cardholder can spend every month.

Transaction Amount

Limit

Currency

(Optional) Enter the maximum amount that a cardholder can spend for each transaction.

Select the currency for the credit limit fields.

Transaction Limits

Select the Transaction Limits tab.

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Managing Procurement Cards Chapter 11

Note. The fields on this tab are only used for reporting purposes.

Transactions Allowed

Per Month

Transactions Allowed

Per Day

Enter the number of transactions that a cardholder can perform in a month.

Enter the number of transactions that a cardholder can perform in a day.

Defining Vendor Card Vendors

Access the Vendors page (click the Vendors link on the Card Data page).

Pay for PO

Allow Override

Dispatch Option

Select this check box if you want this vendor card to appear as the payment method for this vendor and location on a purchase order. If selected this vendor card will appear by default on the purchase order.

Select this check box if this vendor card for this vendor and location can be overridden on a purchase order.

Select the dispatch option for this vendor location. Options are:

Charge to Card on File: Select this option to have "Charge to credit card" print in the header portion of the PO Dispatch/Print SQR report (POPO005).

Contact Buyer: Select this option to have the buyer's name and phone number print in the header portion of the PO Dispatch/Print report. For example,

"*Please contact John Smith 925-694-3863 for payment information."

Contact Cardholder: Select this option to have the card holder's name and phone number print in the header portion of the PO Dispatch/Print report. For example, "*Please contact John Smith 925-694-3863 for payment information."

Default: Select this option to use the dispatch option on the purchase order.

Include Masked Card Info (include masked card information): Select this option to have the masked card number, card type, and expiration date appear in the header portion of the PO Dispatch/Print report.

No Reference: Select this option to have no procurement card information print on the PO Dispatch/Print report.

The system will also update the fields on the Cardholder Profile and Assign

Proxies pages with the selection you make here.

Defining Proxies

Access the Assign Proxies page (click the Proxies link on the Card Data page).

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Chapter 11

User ID

Role

Requestor Default

Buyer Default

Managing Procurement Cards

Select the user authorized to reconcile procurement card statements for the selected card. Creating a user ID enables you to have a centralized reconciliation team that has the authority to review and edit an individual cardholder's statement. Individual cardholders cannot reconcile their own statements unless they have been set up as their own proxy.

Select an appropriate role for the designated proxy. Each role carries a set of access rights.

This check box setting appears by default from the Assign Proxies page when defining the security for the proxy. If this check box is selected, this is the procurement card that will appear as the default when defining the requestor on the Requestor Setup page.

If you make any changes to this check box, the setting will automatically be reflected in the Assign Proxies page when defining the security for the proxy and automatically be reflected in the Requestor Setup page.

This check box setting appears by default from the Assign Proxies page when defining the security for the proxy. If this check box is selected, this is the procurement card that will appear as the default when defining the buyer on the

Buyer Setup page.

If you make any changes to this check box, the setting will automatically be reflected in the Assign Proxies page when defining the security for the proxy and automatically be reflected in the Buyer Setup page.

Defining Default Accounting Distributions

Access the Default Accounting Distribution page (click the Default Distrib (default distribution) link on the

Card Data page).

Distribution Choices

Use Single-Line

Distribution

Select this option to assign a single account distribution for the procurement card transactions. This option is selected when the page appears.

Note. If you select this option, it enables the Use Single Line Distribution group

box.

Use Multi-Line

Distribution

Select this option to assign multi-line distributions for the procurement card transactions.

Note. If you select this option, the Use Multi-Line Distribution group box is

enabled.

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Use Multi-Line Distribution

Speedchart Key

Select SpeedCharts that can be used for this card when reconciling the statement.

Each SpeedChart can carry one or multiple distribution lines. Select a default

SpeedChart that is used in the ProCard Load Statement process to create default accounting distribution lines.

Note. You must designate a default SpeedChart for the system to use when

loading statement data.

Restricting Cardholder Purchases by Commodity Code

Access the Restricted Purchase page (click the Commodity Codes link on the Card Data page).

Note. The fields on this page are only used for reporting purposes.

Commodity Code

Select the commodity for which you want to set a cardholder purchasing restriction. Only commodity codes defined for the setID associated with the default business unit that you selected on the Card Data page are available.

Limit Amount

Enter the maximum amount that the cardholder can spend on the commodity.

Limit Per Trans (limit

per transaction)

Enter the maximum amount that the cardholder can spend per transaction on the commodity.

Defining Card Issuers

To define card issuers, use the ProCard Card Issuers component (CC_CARD_TBL).

This section discusses how to define procurement card issuers.

Pages Used to Define Card Issuers

Page Name

Card Issuer

Definition Name

CC_CARD_TBL

VAT Defaults Setup

VAT_DEFAULTS_DTL

Navigation

Setup Financials/Supply

Chain, Product Related,

Procurement Options,

Purchasing, ProCard Card

Issuers, Card Issuer

Usage

Enter details about the procurement card providers and link these details to a vendor ID.

Click the VAT Defaults link on the Card Issuer page.

View VAT defaults.

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Chapter 11

Page Name

Card Issuer - Setup

Prepayment ChartFields

Definition Name

CC_CARD_TBL_CF

Managing Procurement Cards

Navigation Usage

Click the Setup Prepayment

ChartFields link on the Card

Issuer page.

Define prepayment voucher

ChartFields.

Defining Procurement Card Issuers

Access the Card Issuer page (Setup Financials/Supply Chain, Product Related, Procurement Options,

Purchasing, ProCard Card Issuers, Card Issuer).

Card Issuer page (1 of 2)

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Managing Procurement Cards Chapter 11

260

Card Issuer page (2 of 2)

Credit Card Provider Record

AP Business Unit

(PeopleSoft Payables business unit)

Load Level 3 Data

Select the PeopleSoft Payables business unit that will be used for the prepayment voucher and for staging reconciled transactions.

Bill Includes Tax (if applied)

Bill Includes VAT (if applied)

Select this check box if you want to load itemized data for the procurement card transactions associated with this card issuer. Examples of level three data is additional information related to a transaction such as, car rental, lodging, and passenger itinerary information.

Select this check box to indicate that the procurement card provider record includes sales tax, if applicable.

Select this check box to indicate that the procurement card provider record includes value-added taxes, if applicable.

VAT Default (value-

added tax default)

Click this link to access the VAT Defaults Setup page, where you can set VAT tolerances to check the difference between the calculated VAT amount and the amount entered on the bank statement.

See PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook,

"Working with VAT."

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Chapter 11 Managing Procurement Cards

Prepayment Voucher Default

Create Prepayment

Voucher

Prepayment Voucher

Options

Payment Terms ID

Setup Prepayment

ChartFields

Select this check box if you want to create a prepayment voucher for the procurement card statement amount.

Select the prepayment voucher option. Values are:

Auto Apply: Select this option to have the system use the accounting entry template for the debit side of the transaction. If you select this option you can not select the prepayment voucher ChartFields on the Card Issuer - Setup

Prepayment ChartFields page.

Specify: Select this option if you want to specify the ChartFields to be used for the prepayment voucher. This option also creates a reference ID so that only transactions from the same statement as the prepayment will be drawn down for that prepayment.

Once you select a prepayment voucher option the Setup Prepayment ChartFields link becomes available.

Select the payment terms for the prepayment voucher.

Click this link to access the Card Issuer - Setup Prepayment ChartFields page.

Use this page to define prepayment ChartFields.

Expenses Level 3 Options

This group box enables you determine how many days you would like to delay importing hotel transactions into the system. This enables level 3 data to be available if it comes in a separate file.

Load Level 3 Data

(Expenses)

Delay Days

Select to indicate that you want to load level 3 data for expenses. If you select the check box, the system loads level 3 data. If the check box is deselected, the system does not load level 3 data for expenses. The default value is deselected.

Enter the number of days that determine how long to wait to load hotel information. This allows time for the summary or detail data to be imported if it is sent in a separate file from the main transaction. All other transactions will flow through, but the hotel transactions will be moved into a staging table and will not be available until the appropriate number of days have passed. Delay days will have a default value of zero (blank).

Credit Card Import Hierarchy

Use this group box to determine what type of data to import.

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Managing Procurement Cards

All

Detail

Summary

Chapter 11

Select to have the system check for detail data. If detail data exists, the system imports the data as well as the main transaction. If there is no detail data, the system checks for summary data, and if it finds that data imports it as well as the main transaction. If neither types of data are available, the system imports only the main transaction. All is the default value for the group box.

Select to have the system attempt to import the detail data. If detail data is not available, the system only imports the main transaction. The system does not check for summary data. If the detail data amount is not available or the total does not match, the system only imports the main transaction data.

Select to have the system attempt to import summary data. If summary data is not available, the system only imports the main transaction.

Statement as Approved VAT Receipt

Country

If the card issuer is an approved provider for claiming tax credit from procurement card statements, select the name of the country that uses credit card statements in lieu of actual receipts for VAT reporting.

When the country is listed, the ProCard Load Statement Application Engine process (PO_CCLOADLD) sets the Claiming Tax Credit field to Yes, indicating that the electronic statement can be used as evidence of VAT for claiming VAT recovery. When this is the case, no additional receipt documentation is required for VAT reporting purposes. The system performs appropriate calculations of

VAT rebate and recovery for these lines.

When the country does not allow electronic versions of the procurement card statement to serve as evidence of VAT recovery, the user has the option to indicate whether a VAT receipt exists on the Reconcile Statement - Procurement

Card component.

Defining Preferred Vendors

To define preferred vendors, use the Preferred Vendors component (CC_VNDR_XREF).

This section discusses how to:

Define preferred vendors.

Maintain a list of preferred vendors.

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Chapter 11 Managing Procurement Cards

Pages Used to Define Preferred Vendors

Page Name

List of Merchants

Definition Name

CC_VNDR_NM

Vendor Search

Preferred Vendors

Non-Preferred Supplier

VENDOR_LOOKUP_SEC

CC_VNDR_XREF

RUN_POY8061

Navigation Usage

Purchasing, Procurement

Cards, Definition, Preferred

Vendors

Use the fields on the

Preferred Vendors page and click Search to display a particular vendor, or leave the fields blank and click

Search to display all vendors.

Displays a merchant or list of merchants with whom the cardholders have made purchases. To qualify as a preferred vendor, a merchant has to be mapped to a vendor set up in the system. After you enter and save the required information, the data is moved to the preferred vendor list.

Click the Vendor Lookup link on the List of

Merchants page.

Search for vendors.

Purchasing, Procurement

Cards, Definitions,

Preferred Vendors

On the Preferred Vendors page, search for a vendor or vendors.

Maintain or change the relationship between a merchant and a preferred vendor. The preferred vendors are those from whom you want the cardholders to purchase.

On the List of Merchants page, select the Preferred

Vendors tab.

Purchasing, Procurement

Cards, Reports, Non-

Preferred Supplier

Run the Non-Preferred

Supplier multiprocess job

(POY8061). This process will generate the Non-

Preferred Supplier Crystal report (POY8061).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

Defining Preferred Vendors

Access the List of Merchants page (Purchasing, Procurement Cards, Definition, Preferred Vendor, List of

Merchants).

Merchant

Displays the merchant names that come from each line on the bank statement.

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Managing Procurement Cards

Vendor SetID

Vendor ID

Location

Select the vendor setID for the vendor that you want to associate with the merchant.

Select the vendor that you want to associate with the merchant.

Select the vendor location.

Chapter 11

Maintaining a List of Preferred Vendors

Access the Preferred Vendors page (Purchasing, Procurement Cards, Definitions, Preferred Vendor, Preferred

Vendors).

Use the fields on this page to edit the preferred vendors that you defined on the List of Merchants page.

Defining Preferred UOM

To define preferred UOM, use the UOM Mappings component (CC_UOM_XREF).

This section discusses how to:

Define preferred UOM.

Maintain preferred UOM.

Pages Used to Define Preferred UOM

Page Name Definition Name

List of Merchant UOM (list of merchant unit of measure)

CC_UOM_NM

Navigation Usage

Purchasing, Procurement

Cards, Definitions, UOM

Mappings, List of Merchant

UOM

Some vendors are capable of entering level three data

(line item information); therefore, UOM may show up for some statement lines.

Displays a list of UOM that comes from the bank statement. Once the corresponding UOM is entered, data is moved to the preferred UOM when you save this page.

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Chapter 11

Page Name

Preferred UOM

Definition Name

CC_UOM_XREF

Managing Procurement Cards

Navigation

Purchasing, Procurement

Cards, Definitions, UOM

Mappings, Preferred UOM

Usage

Maintain the translation between the merchant UOM and system UOM (stored in

UNITS_TBL). The statement load process is based on the information that you entered here to convert the UOM.

Defining Preferred UOM

Access the List of Merchant UOM page (Purchasing, Procurement Cards, Definitions, UOM Mappings, List of Merchant UOM).

Merchant UOM

Unit of Measure

Displays the UOM used by the merchant.

Displays the UOM mapped to the merchant UOM.

Maintaining Preferred UOM

Access the Preferred UOM page (Purchasing, Procurement Cards, Definitions, UOM Mappings, Preferred

UOM).

Use the fields on this page to edit the preferred UOM that you defined on the List of Merchant UOM page.

Defining MCC Blocked

To define blocked MCC's, use the ProCard Blocked MCCs component (CC_MCC_BLOCKED).

This section lists the pages used to define MCC blocked.

Note. Once a merchant category code is blocked, the cardholder is not authorized to purchase from merchants

within the blocked category code. This information is used for reporting purposes only within PeopleSoft.

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Managing Procurement Cards

Pages Used to Define MCC Blocked

Page Name

Blocked MCC (blocked merchant category code)

Definition Name

CC_MCC_BLOCKED

Merchant Category Group EX_VIS_MCG_MAP

Chapter 11

Navigation

Setup Financials/Supply

Chain, Product Related,

Procurement Options,

Purchasing, ProCard

Blocked MCCs, Blocked

MCC

Usage

Blocks purchases made within the specified MCC.

Setup Financials/Supply

Chain, Product Related,

Expenses, Mapping,

Merchant Category Group

Map MCCs to merchant category groups.

Defining Visa Transaction Type Codes

To define Visa transaction type codes, use the Visa ProCard Transaction Codes component

(CC_VISA_TTYPE).

This section lists the page used to set up Visa transaction type codes.

Page Used to Define Visa Transaction Type Code

Page Name

Visa Transaction Codes

Definition Name

CC_VISA_TTYPE

Navigation

Setup Financials/Supply

Chain, Product Related,

Procurement Options,

Purchasing, ProCard Visa

Transaction Codes, Visa

Transaction Codes

Usage

Enter a code provided by

VISA to indicate debit or credit transactions.

Defining Procurement Card Mapping

To define procurement card XML maps, use the ProCard MasterCard XML Map component

(CC_MC_XML_MAP).

This section list the pages used for procurement card mapping.

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Chapter 11 Managing Procurement Cards

Pages Used to Define Procurement Card Mapping

Page Name

Country Code

Currency Code

MasterCard XML Map

Definition Name

EX_COUNTRY_MAP_PNL

EX_CURRNCY_MAP_PNL

CC_MC_XL_MAP

Navigation

Setup Financials/Supply

Chain, Product Related,

Procurement Options,

Purchasing, ProCard

Country Map, Country

Code

Setup Financials/Supply

Chain, Product Related,

Procurement Options,

Purchasing, ProCard

Currency Map, Currency

Code

Setup Financials/Supply

Chain, Product Related,

Procurement Options,

Purchasing, ProCard

MasterCard XML Map,

MasterCard XML Map

Usage

Map the incoming countries associated with transactions to PeopleSoft countries.

Map the incoming currencies associated with transactions to PeopleSoft currencies.

Define the MasterCard

XML mapping to the

PeopleSoft mapping.

Setting Up Procurement Card Load Statement Options

To setup procurement card load statement options, use the ProCard Load Statement Options component

(CC_RECON_OPT).

This section discusses how to define load statement options.

Page Used to Define Procurement Card Load Statement Options

Page Name

Load Statement Options

Definition Name

CC_RECON_OPT

Navigation

Setup Financials/Supply

Chain, Product Related,

Procurement Options,

Purchasing, ProCard Load

Statement Options, Load

Statement Options

Usage

Set criteria for handling transactions with small amounts and for enabling the system to match and populate purchase order data.

Defining Load Statement Options

Access the Load Statement Options page (Setup Financials/Supply Chain, Product Related, Procurement

Options, Purchasing, ProCard Load Statement Options, Load Statement Options).

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Managing Procurement Cards Chapter 11

Load Statement Options page (1 of 2)

268

Load Statement Options page (2 of 2)

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Chapter 11 Managing Procurement Cards

Small Amount Criteria

Set status to when billing amount is<=

Currency

Select a small amount criteria status. Values are: Verified,Approved, or the field is blank. If it is blank, the default status is Staged. For tighter control, you can set the status to either blank or Verified. The statement line must be approved before you send it to PeopleSoft Payables.

Enter an amount for the small amount criteria. Indicates the upper limit of the criterion.

Select a currency for the small amount criteria.

ProCard Auto-Recon Options

Allow system to match

and populate PO data

(allow system to match and populate purchase order data)

Select this check box to request that the system automatically match the transaction data with the existing purchase order information to populate purchase order data.

Criteria to Find Matching Purchase Orders

Reconcile by Header

Reconcile by Line

Reconcile by Schedule

Date Field

Select this check box to match the transactions with the purchase order header.

The system attempts to match the entire purchase order information.

Select this check box to match the transactions with the purchase order line.

Select this check box to match the transactions with the purchase order line schedule.

Select a date for the purchase order header, line, or schedule. To match by schedule, values are: PO Date and Ship Date.

Transactions Charged to a Vendor Card

Set status to

Select a status when the purchase order amount is not the same as the amount on the statement but is within the tolerance percentages and when the purchase order amount equals the transaction amount. Values are: Verified,Approved, or the field is blank. If it is blank, the default status is Staged.

Enter a percentage for the upper limit that exceeds the matching amount.

% Over (percentage

over)

% Under (percentage

under)

Enter a percentage for the lower limit that falls short of the matching amount.

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Managing Procurement Cards Chapter 11

Transactions with a Valid PO ID (transactions with a valid purchase order ID)

Set status to

Select a status when the purchase order amount is not the same as the amount on the statement but is within the tolerance percentages and when the purchase order amount equals the transaction amount. Values are: Verified,Approved, or the field is blank. If it is blank, the default status is Staged.

Enter a percentage for the upper limit that exceeds the matching amount.

% Over (percentage

over)

% Under (percentage

under)

Enter a percentage for the lower limit that falls short of the matching amount.

Transactions without a Valid PO ID

Set status to

Select a status when the purchase order amount is not the same as the amount on the statement but is within the tolerance percentages and when the purchase order amount equals the transaction amount. Values are: Verified,Approved, or the field is blank. If it is blank, the default status is Staged.

Enter a percentage for the upper limit that exceeds the matching amount.

% Over (percentage

over)

% Under (percentage

under)

Enter a percentage for the lower limit that falls short of the matching amount.

PO Statuses to Include

Select the purchase order statuses to be included for the transactions. You can select Dispatched.Approved, or both. The system only considers those purchase orders that include purchase order statuses. The default selects both Dispatched and Approved.

Staging Procurement Card Statements Using PeopleSoft Integration

Broker

You can load procurement card statements in XML format to your CC_TRANS_EC staging tables using

PeopleSoft Integration Broker. If your inbound statement file complies with neither VISA Commercial

Format, MasterCard Custom Data File, nor US Bank data layouts, you can use this approach to load your statement file.

See Also

PeopleSoft Enterprise Supply Chain Management Integration 9.1 PeopleBook, "Understanding PeopleSoft

Supply Chain Management Enterprise Integration Points"

Enterprise PeopleTools PeopleBook: Integration Broker

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Chapter 11 Managing Procurement Cards

Staging Procurement Card Statements in a Flat File Format

You can load procurement card statements in flat-file format to your CC_TRANS_EC staging tables. If your inbound statement file complies with neither VISA Commercial Format, MasterCard Custom Data File, nor

US Bank data layouts, you can use this approach to load your statement file.

To receive the flat-file statement into your system, you must first define an inbound file rule. This rule enables you to use the Inbound File Publish process to load data into your CC_TRANS_EC staging tables.

See Also

PeopleSoft Enterprise Electronic Data Interchange 9.1 PeopleBook, "Understanding Electronic Data

Interchange"

Using the Credit Card Data EIP

This section provides an overview of the Credit Card Data EIP and discusses how to set up the Credit Card

Data EIP.

Understanding the Credit Card Data EIP

The Credit Card Data EIP sends corporate card data to an external system.

Use this asynchronous full data publish and component publish EIP to provide your external customers with credit card data from your purchasing system.

It's first published using the full data utility, then incrementally when the component associated with it is saved.

Setting Up the Credit Card Data EIP

PeopleSoft delivers the service operations in PeopleSoft Integration Broker with a default status of Inactive.

You must activate each service operation before attempting to send or receive data from a third-party source or another PeopleSoft system, such as CRM.

Before you can use the Credit Card EIP, you must:

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Managing Procurement Cards Chapter 11

1. Setup the service operation within PeopleSoft Integration Broker and Enterprise Components:

Use the information in the table below and refer to the setup instructions in the PeopleSoft Enterprise

Supply Chain Management Integration 9.1 PeopleBook, "Implementing Integrations" chapter, Setting Up

Service Operations section.

Service Operation Direction and Type Handlers

CorporateCardDataFullSync

Chunking

Available?

No CORPORATE_CARD_DAT

A_FULLSYNC

Inbound and

Outbound

Asynchronous

Integrates

With

third-party system

CORPORATE_CARD_DAT

A_SYNC

No third-party system

CORPORATE_CARD_DAT

A_SYNC

Inbound and

Outbound

Asynchronous

CORPORATE_CARD_FUL

LSYNC

Inbound and

Outbound

Asynchronous

CorporateCardFullSync No third-party system

CORPORATE_CARD_SYN

C

Inbound and

Outbound

Asynchronous

CorporateCardSync No third-party system

2. Address any special setup steps defined for this EIP

Using the Procurement Card Load EIP

This section provides an overview of the Procurement Card Load EIP and discusses how to use the

Procurement Card Load EIP.

Understanding the Procurement Card Load EIP

The Procurement Card Load EIP is an asynchronous batch subscribe service operation that uploads procurement card statements from your procurement card vendors.

Run the Procard Statement Load Application Engine process (PO_CCLOADLD) to move the data from staging tables to application tables.

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Pages Used to Use the Procurement Card Load EIP

Page Name

Load Statement

Data Collection Setup

Data Def Maint (Data

Definition Maintenance)

Definition Name

RUN_CC_LOADTRANS

BCT_SETUP_FS

EO_EIP_CTL_MAINT

Navigation

Purchasing, Procurement

Cards, Process Statements,

Load Statement

Usage

Run the ProCard Load

Statement process to load the statement lines from the staging table into the statement tables and to perform autoreconciliation using the settings defined on the Procurement Card

Load Statement Options page.

SCM Integrations, Setup,

Data Collection, Data

Collection Setup

Set the option to keep transaction log history for electronic data collection transactions and to set the default file suffix.

SCM Integrations,

Transaction Error Handling,

Maintain Data Definitions,

Data Def Maint (data definition maintenance)

View data detail or correct errors for service operations that contain data rather than transactions.

Using the Procurement Card Load EIP

PeopleSoft delivers the service operations in PeopleSoft Integration Broker with a default status of Inactive.

You must activate each service operation before attempting to send or receive data from a third-party source or another PeopleSoft system, such as CRM.

Before you can use the Procurement Card Load EIP, you must:

1. Setup the service operation within PeopleSoft Integration Broker and Enterprise Components:

Use the information in the table below and refer to the setup instructions in the PeopleSoft Enterprise

Supply Chain Management Integration 9.1 PeopleBook, "Implementing Integrations" chapter, Setting Up

Service Operations section.

Service Operation Direction and Type Handlers

PROCUREMENT_CARD_L

OAD

Inbound

Asynchronous

ProcurementCardLoad

Chunking

Available?

No

Integrates

With

third-party system

2. Run the ProCard Statement Load process to move the service operation data from the staging tables to application tables.

3. Use the Data Def Maint page to view service operation data and correct error messages that are picked up in the processing of the service operation.

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Staging Standard Delivered Bank Format Statements

This section discusses how to run the ProCard Data Loader Application Engine process (PO_CCPRDSTG).

Page Used to Stage Standard Delivered Bank Format Statements

Page Name

ProCard Stage

Definition Name

RUN_CC_PCRDSTG

Navigation Usage

Purchasing, Procurement

Cards, Process Statements,

Load ProCard Stage,

ProCard Stage

Load the bank statement

(transactions) into the staging tables using the

ProCard Data Loader process. If the data source is

VISA, it triggers the

PO_CCVISA subprocess to load the Visa Commercial

Format compliant data file.

If the data source is US

Bank, it triggers the

PO_CCUSBANK subprocess to load the US

Bank compliant data file. If the data source is

MasterCard, it triggers the

PO_CCMC subprocess to load the MasterCard

Custom Data Format compliant data file.

Running the ProCard Data Loader Application Engine Process

(PO_CCPCRDSTG)

Access the ProCard Stage page (Purchasing, Procurement Cards, Process Statements, Load ProCard Stage,

ProCard Stage).

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Chapter 11 Managing Procurement Cards

ProCard Stage page

Card Issuer

Data Source

File Name

Billing Date

Load Level 3 Data

Select the credit card vendor that issues the credit card.

Select to determine what file layout to use. If the bank statement is in VISA

Commercial Format, then you should select VISA Commercial Format. If the bank statement is in US Bank format, then you should select USBank Layout. If the bank statement is in MasterCard format, then you should select MasterCard

Custom Data Format.

Enter the file name and the full path of the file. The directory specified has to be accessible by the PeopleSoft Process Scheduler server.

Today's date appears by default. Select the billing date to use for staging the statements.

Note. This field is only available for the Visa Commercial Format data source.

This field selection appears by default from the Card Issuer page. It is display only and cannot be modified on this page.

Note. This check box only appears for Visa Commercial Format and the Master

Card Custom Data Format data sources.

See Also

Chapter 11, "Managing Procurement Cards," Defining Procurement Card Issuers, page 259

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Managing Procurement Cards Chapter 11

Handling Statement Staging Errors

This section discusses how to handle staging errors.

Staging errors can arise when loading your procurement card statement data to the staging tables. For example, you can use this page to address invalid credit card vendor information and invalid credit card numbers.

Page Used to Handle Statement Staging Errors

Page Name

Correct Errors

Definition Name

CC_STG_ERR

Navigation

Purchasing, Procurement

Cards, Process Statements,

Correct Errors

Usage

Correct errors for data in the staging table. Statement lines cannot be loaded in the statement tables if the credit card vendor or credit card account number are incorrect.

Handling Staging Errors

Access the Correct Errors page (Purchasing, Procurement Cards, Process Statements, Correct Errors).

Stage Error

Displays the type of staging errors. Values are: Account, Vendor, or Both. An account error indicates that the cardholder number is invalid or not on file. A vendor error indicates the vendor name is invalid in the vendor table. An error for both error refers to both the account and vendor error. If there's a stage error, the employee ID does not appear.

Loading Procurement Card Statements to Application Tables

This section provides an overview of the ProCard Load Statement process and discusses how to run the

ProCard Load Statement process.

Understanding the ProCard Load Statement Process

The ProCard Load Statement Application Engine process (PO_CCLOADLD) has different functions, including:

Automatically reconcile between procurement card statements and Purchase Orders using the criteria you define on the Load Statement Options page and then loading those statements to application tables.

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Load the statements to be manually reconciled by you using the Reconcile Statement component.

Once statement lines have been loaded successfully, the status of the lines is set to Staged, and the statement lines are ready for review using the Reconcile Statement component. After loading the statement lines into the statement tables, you can run the Bank Statement workflow process to notify cardholders. However, you are not required to run that process. Each cardholder needs an email ID in order to be notified. For each bank statement line that has not been approved, the system sends an email message to the corresponding cardholder. If the status of the statement line is Staged, then it changes to

Initial.

Create prepayment vouchers for the procurement card statements.

After the ProCard Load Statement process runs it creates prepayment vouchers in the voucher staging tables. You will then need to run the Voucher Build process to create the prepayment voucher in

PeopleSoft Payables.

Perform budget validation for the statement lines.

This function validates the existing budget rows for the ChartField combinations associated with the procurement cards. This budget validation process has no budgetary impact nor does it validate remaining budget balances.

See Chapter 8, "Using Commitment Control," page 179.

Calculate VAT amounts for the statement lines.

Reconciling Statements Automatically

The system reconciles the statement lines by reconciling:

Transactions based on small amount criteria.

Transactions charged to a vendor card.

Transactions with a valid purchase order ID.

Transactions without a valid purchase order ID.

Note. The primary purpose of the Load Statement Options page is to set up filters to copy purchase order data

into the statement tables and set the statement status. For tighter commitment control, you can create purchase orders for procurement card purchases. The automatic reconciliation process reduces the manual efforts to reconcile between these two sets of transactions.

Reconciling Transactions Based on the Small Amount Criteria

To reconcile based on small amount criteria:

1. If the statement line involves a small amount and is not part of a purchase order, the system only considers the small amount criteria and assigns a statement status associated with When billing amount is

<=.

2. If the statement line fails to meet any of the criteria, the status automatically changes to Staged.

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Reconciling Transactions Charged to a Vendor Card

To reconcile transactions charged to a vendor card:

1. If there is a purchase order with a valid vendor card in the statement, the system automatically copies the entire purchase order including line, schedule, and distribution information into the statement tables.

Note. The information that the system copies from the purchase order includes sales tax and VAT

information.

2. The system splits the statement lines automatically.

3. If there is a discrepancy between the statement line amount and the purchase order amount, the system prorates the purchase order amount with respect to the statement line amount, because the statement line amount is what you are liable to pay.

4. If the transaction amount matches the purchase order amount, the system assigns a statement status associated with When purchase order amount is = billing amount.

Because this is a perfect match, you can set the status to Approved, and the cardholder does not need to reconcile it manually.

5. If the purchase order amount is within the tolerance range (percentage over and percentage under), the system assigns a statement status associated with When purchase order amount is within tolerances.

6. If the statement amount is neither the same as the purchase order amount nor within the tolerance range, the system considers the small amount criteria and assigns a statement status associated with When billing amount is <=.

7. If the statement line fails to meet any of the criteria, the status automatically changes to Staged.

Reconciling Transactions with Purchase Order ID

To reconcile transactions with a valid purchase order ID:

1. If there is a purchase order with a valid ID in the statement, the system automatically copies the entire purchase order including line, schedule, and distribution information into the statement tables.

Note. The information that the system copies from the purchase order includes sales tax and VAT

information.

2. The system splits the statement lines automatically.

3. If there is a discrepancy between the statement line amount and the purchase order amount, the system prorates the purchase order amount with respect to the statement line amount, because the statement line amount is what you are liable to pay.

4. If the transaction amount matches the purchase order amount, the system assigns a statement status associated with When purchase order amount is = billing amount.

Because this is a perfect match, you can set the status to Approved, and the cardholder does not need to reconcile it manually.

5. If the purchase order amount is within the tolerance range (percentage over and percentage under), the system assigns a statement status associated with When purchase order amount is within tolerances.

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Chapter 11 Managing Procurement Cards

6. If the statement amount is neither the same as the purchase order amount nor within the tolerance range, the system considers the small amount criteria and assigns a statement status associated with When billing amount is <=.

7. If the statement line fails to meet any of the criteria, the status automatically changes to Staged.

Reconciling Transactions Without Purchase Order ID

To reconcile transactions without a valid purchase order ID:

1. If you do not select Allow System to match and populate PO data, the system does not attempt to copy purchase order information into the statement tables for these transactions.

If the statement line amount meets the small amount criteria, the system assigns a statement status accordingly. The distribution information comes directly from the cardholder profile.

2. If you select Allow System to match and populate PO data, the system attempts to match the statement line with purchase order by header, then by line, and finally by schedule based on the settings in the Load

Statement Options.

If the match results in no purchase order or multiple purchase orders, the system does not bring in any purchase order information, and it uses the distribution information from the cardholder profile.

3. If there is a purchase order whose date and amount is the same as the transaction date and amount on a statement line, then the system brings in the entire purchase order information including line, schedule, and distribution.

4. If there is no purchase order with the same date and amount, but there is a purchase order with the same date and the amount is within tolerance range, then the system also brings in the entire purchase order information including line, schedule, and distribution.

5. If there are multiple purchase orders that meet the matching criteria, the system does not copy the purchase order information and must reconcile this statement line manually.

However, when you are reconciling this statement line manually those purchase orders become candidates for you to pick from on the purchase order information page.

6. If the statement line fails to meet any of the criteria, the status automatically changes to Staged.

In cases where there is no purchase order available to copy to the transaction, the system applies any field defaults from the appropriate defaulting hierarchy, including the cardholder profile and the VAT defaulting hierarchy, to complete the data on the Procurement Card transaction. These data elements are available to review and override on the Reconcile Statement - Procurement Card component.

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Managing Procurement Cards Chapter 11

Note. When a procurement card transaction is linked to a purchase order, all VAT default fields are copied

from the purchase order. In cases where a purchase order is not linked to the transaction, the system uses the following logic to derive the Ship To Address, Ship From Address, and Seller's Location fields in order to complete the VAT defaulting and calculation process:

Ship To Address: Use the ship to address on the CC_TRANS_LINE table to derive the ship to country and state. This appears by default from the cardholder profile.

Seller's Location: If the merchant address is available in the CC_TRANS_LINE, use the merchant country and state to derive the seller's country and state. Otherwise, if the merchant vendor cross-reference exists, use the ordering address of vendor in the CC_TRANS_LINE to derive seller's country and state.

Ship From Address: If the merchant and vendor relationship does exist, use the default ship from location defined in the vendor to determine the Ship From Country and State fields. If this relationship is not available, the Merchant Address fields are used. Finally, if no merchant address was transmitted on the transaction, use the ship to address.

Page Used to Load Procurement Card Statements to Application Tables

Page Name

Load Statement

Definition Name

RUN_CC_LOADTRANS

Navigation

Purchasing, Procurement

Cards, Process Statements,

Load Statement

Usage

Run the ProCard Load

Statement process to load the statement lines from the staging table into the statement tables and to perform autoreconciliation using the settings that you defined on the Load

Statement Options page.

Running the ProCard Load Statement Process

Access the Load Statement page (Purchasing, Procurement Cards, Process Statements, Load Statement).

Total Rows in the

Staging Tables

Displays the number of statement line records in the staging table waiting to be loaded into the application table.

Total Rows with Error in the Staging Tables

Displays the number of statement line records that did not successfully load from the staging tables to the application tables after the ProCard Load Statement process. Use the Correct Errors page to view and handle these errors.

Total Rows to be

Loaded

Displays the total number of records in the staging table that are ready to be loaded. This includes the total rows in the staging tables and the total rows with errors in the staging tables.

Delete Loaded Rows

From the Staging Tables

Select this check box to delete statement line records from the staging table that were successfully loaded to the statement tables.

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Chapter 11 Managing Procurement Cards

Running the Bank Statement Workflow Application Engine Process

(PO_CCSTMT_WF)

This section lists the page used to run the Bank Statement Workflow process.

Page Used to Run the Bank Statement Workflow Application Engine Process

Page Name

Bank Statement Workflow

Definition Name

PO_CCSTMT_WF

Navigation

Purchasing, Procurement

Cards, Process Statements,

Bank Statement Workflow

Usage

Notifies the cardholder that the bank statement has arrived. Upon notification, you can reconcile the statement. The statement remains at the same status that it was before you ran the Bank Statement

Workflow

(PO_CCSTMT_WF) process.

Reconciling Procurement Card Transactions Manually

This section discusses how to:

Review and approve procurement card transactions.

Defining account distributions.

Define statement line purchase order details.

Enter statement line tax information.

Split statement lines.

Use distribution templates.

View tax information for a distribution.

View VAT line information.

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Pages Used to Reconcile Procurement Card Transactions Manually

Page Name Definition Name

Reconcile Statement Search CC_RECON_SRCH

Reconcile Statement -

Procurement Card

Transactions

Reconcile Statement -

Merchant Details

CC_RECON_WB

CC_RECON_MERCHANT

ProCard VISA Trans Detail

Reconcile Statement - Visa

Transaction Details

CC_RECON_VISA

ProCard MasterCard Trans

Reconcile Statement -

MasterCard Transaction

Details

CC_RECON_MC

Reconcile Statement -

MasterCard Transaction

Details

CC_RECON_MC_5300CU

Reconcile Statement - Line

Comments

CC_RECON_COMMENT

Navigation Usage

Purchasing, Procurement

Cards, Reconcile, Reconcile

Statement, Reconcile

Statement Search

Enter search criteria for the procurement card transactions you want to reconcile.

Click the Search button on the Reconcile Statement

Search page.

Review, manage, and approve procurement card transactions loaded by the

Load Statement process.

You can view all of the procurement card transactions that you have been granted authority to access on the Cardholder

Profile - Card Data: Assign

Proxies page.

Click the Merchant Name link on the Reconcile

Statement - Procurement

Card Transactions page.

Review merchant or preferred vendor crossreference information.

Click the Line Details button for a Visa transaction on the Reconcile Statement

- Procurement Card

Transactions page.

View the details of the Visa transaction.

Click the Line Details button for a MasterCard transaction on the Reconcile

Statement - Procurement

Card Transactions page.

View the details of the

MasterCard transaction.

Click the Show Details button for a corporate card line item detail associated with a MasterCard transaction on the ProCard

MasterCard Trans

Reconcile Statement -

MasterCard Transaction

Details page.

View the details associated with the MasterCard transaction.

Click the Comments button on the Reconcile

Statement - Procurement

Card Transactions page.

Enter comment text that remains with the associated procurement card transaction line.

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Chapter 11

Page Name

Reconcile Statement -

Account Distribution

Credit Card Distribution

VAT

Reconcile Statement -

Purchase Details

Sales/Use Tax

Category Search

Definition Name

CC_TRANS_DIST

CC_TRANS_DIST_VAT

CC_RECON_PO

View Category Hierarchy

CAT_PARENTAGE_SEC

Purchase Order Pick List

CC_TRANS_SUT

CAT_SEARCH_SEC

CC_POPICKLIST

Managing Procurement Cards

Navigation

Click the Distribution button on the Reconcile

Statement - Procurement

Card Transactions page.

Usage

Split accounting distributions or override defaults for a statement line.

The key difference between this page and the

Distribution

Templates/Reset Status page is that this page affects one statement line at a time.

Click the Distribution

VAT button on the

Reconcile Statement -

Account Distribution page.

View the distribution VAT details that are associated with your procurement card transactions.

Click the Purchase Order link on the Reconcile

Statement - Procurement

Card Transactions page.

Click the Sales/Use Tax link on the Reconcile

Statement - Purchase

Details page.

(Optional) Define any purchasing attributes applicable to a statement line.

Enter optional tax information related to the statement line. This data is not passed to PeopleSoft

General Ledger and is for informational purposes only.

Click the Category Search link on the Reconcile

Statement - Purchase

Details page.

Search for and select an appropriate category ID for the item when entering an ad hoc item. The search for the category ID is done using a category hierarchy tree.

Click the View Hierarchy link on the Reconcile

Statement - Purchase

Details page.

View information about where a category resides in the entire catalog tree hierarchy.

Click the PO Pick List link on the Reconcile Statement

- Purchase Details page.

Select a purchase order from a list of candidates that meet the criteria specified on the Procurement Card

Load Statement Options page.

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Page Name Definition Name

Reconcile Statement - Split

Transaction

CC_RECON_SPLIT

Reconcile Statement -

Distribution Template

CC_RECON_TEMPLATE

Credit Card Transaction

Line VAT

Account Summary

CC_TRANS_LINE_VAT

RUN_POY8050

Chapter 11

Navigation Usage

Click the Split Line link on the Reconcile Statement -

Procurement Card

Transactions page.

Enter a description to supplement level-one information given by your card provider or split the original statement line into multiple lines where you can record details of each item purchased.

To split accounting lines or override default values only, use the Reconcile

Statement - Account

Distribution page.

Click the Distribution

Template link on the

Reconcile Statement -

Procurement Card

Transactions page.

Click the Line VAT button on the Reconcile

Statement - Procurement

Card Transaction page.

Purchasing, Procurement

Cards, Reports, Account

Summary

Change accounting distributions for all of the selected lines at once. You might use this feature to assign the same SpeedChart to several statement lines from a particular merchant.

View the VAT line details that are associated with your procurement card transactions.

Run one of these multiprocess jobs: Purchase

Summary by Issuer

(POY8050) which will generate the Purchase

Summary by Issuer Crystal report (POY8050), Purchase

Summary by Merchant

(POY8051) which will generate the Purchase

Summary by Merchant

Crystal report (POY8051), or Purchase Summary by

Employee (POY8052) which will generate the

Purchase Summary by

Employee Crystal report

(POY8052).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

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Chapter 11

Page Name

Purchase Details

Definition Name

RUN_POY8030

Managing Procurement Cards

Navigation

Purchasing, Procurement

Cards, Reports, Purchase

Details

Usage

Run one of these multiprocess jobs: Purchase

Detail by Issuer (POY8030) which will generate the

Purchase Detail by Issuer

Crystal report (POY8030),

Purchase Detail by

Merchant (POY8031) which will generate the

Purchase Detail by

Merchant Crystal report

(POY8031), or Purchase

Detail by Employee

(POY8032) which will generate the Purchase Detail by Employee Crystal report

(POY8032).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

Reviewing and Approving Procurement Card Transactions

Access the Reconcile Statement - Procurement Card Transactions page (Purchasing, Procurement Cards,

Reconcile, Reconcile Statement, Reconcile Statement Search, and click the Search button on the Reconcile

Statement Search page).

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Reconcile Statement - Procurement Card Transactions

Transaction

Merchant

ChartField Status

Click the linked merchant name to access the Reconcile Statement - Merchant

Details page. Use this page to view the source of the purchased goods.

Click the Line Details button to access the ProCard VISA Trans Detail Reconcile

Statement - Visa Transaction Details or ProCard MasterCard Trans Reconcile

Statement - MasterCard Transaction Details pages. Use these pages to view the details for the Visa or MasterCard transaction.

Note. The Line Details button is only available when load level 3 data is on when

loading with Visa or MasterCard data files.

Click the Comments button to enter comments for the reconcile statement line.

Click the Distribution button to access the Reconcile Statement - Account

Distribution page, where you can modify the account distribution for a procurement card.

Displays the status of the ChartField edits.

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Chapter 11 Managing Procurement Cards

Billing

Select the Billing tab.

Description

Billing Amount

Prepaid Ref (prepaid

reference)

Dispute Amount

Credit Collected

Enter additional information about the goods purchased.

Displays the amount billed on the statement line.

Displays the prepayment voucher associated with the transaction.

If your records disagree with the billing amount, enter the amount difference.

This does not mean that your organization is not liable for the purchase, but rather acts as a notation that the user reconciling this account must follow up with the merchant or procurement card vendor to settle the disputed amount. If you enter an amount, the statement line is visible on the Review Disputes - Dispute page until it has been identified as collected.

Displays the status of the disputed amount. If clear, the dispute is still open. If selected, the dispute has been identified as collected or closed on the Review

Disputes - Dispute page.

VAT

Select the VAT tab.

Physical Nature

VAT Entity

Displays whether the purchased item is a good or service.

Displays the VAT entity associated with PeopleSoft General Ledger business unit from the PeopleSoft Purchasing business unit.

Entered VAT Amount

Displays the amount of VAT included on the statement line.

Displays the amount of VAT that the system calculates.

VAT Calculated

Amount

Claiming Tax Credit

Indicates whether the statement line is to be used as proof for recovery of VAT.

This field is automatically selected if statements issued by the card provider are defined as approved VAT receipts for the VAT reporting country. If you select this field, no additional VAT receipt is required to enable VAT recovery and rebate amounts to be calculated. If this field is not selected, you must indicate that a separate VAT receipt is available to enable the calculation of VAT recovery and rebate amounts.

No VAT Receipt

If the Claiming Tax Credit check box is not selected, this field indicates whether a separate VAT receipt is available as proof for recovery of VAT. Select this field to indicate that no VAT receipt is available. This causes zero VAT recovery and rebate amounts to be recorded.

Click the Line VAT button to navigate to the Credit Card Transaction Line VAT page to review and possibly change the line VAT information.

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Updating Transaction Status

You can change the status of a card transaction for individual lines or for many lines in mass.

To update the status of an individual line, select a value in the Status field.

To update the status for multiple lines at once, click the check box next to each line and use the buttons at the bottom of the Reconcile Statement - Procurement Card Transactions page to change the status to the appropriate value. You have authority to change statuses based on your procurement card roles and access rights granted to those roles defined on the Procurement Card Access Rights page.

Performing Budget Validation on Transactions

There are two ways to perform budget validation against transactions on this page if you are using commitment control. You have the option to perform budget validation on all the transactions when you save the page or you can select transactions and then perform budget validation on those transactions when you click the Validate Budget button.

Note. The Run Budget Validation on Save check box and the Validate Budget button only appear on this

page if you are using commitment control for procurement cards.

Run Budget Validation on Save

Select to indicate that you want the system to initiate the Comm. Cntrl. Budget

Processor (commitment control budget processor) Application Engine process

(FS_BP) when you save the page. This page initiates the Comm. Cntrl. Budget

Processor process but only a portion of the processing (budget validation) within that process is performed. This process validates the existing budget rows for the

ChartField combinations associated with the procurement cards. This process has no budgetary impact nor does it validate remaining budget balances and finds errors in the ChartField combinations before they are found downstream in accounts payable.

After budget validation is finished, the system will change the budget status on the transactions to either Valid or Error.

Validate Budget

After you select one or more transactions click this button to initiate the Comm.

Cntrl Budget Processor process. By clicking this button you initiate the Comm.

Cntrl. Budget Processor process but only does a portion of the processing (budget validation) within that process is performed. This process validates the existing budget rows for the ChartField combinations associated with the procurement card. This process has no budgetary impact nor does it validate remaining budget balances.

When you click this button, the page will indicate that the process is being performed. The page will flash "processing" until the process has finished performing the budget validation for the document. After the process is finished, the system will change the budget status on the transactions to either Valid or

Error.

Note. You can still click this button for specific transactions even if the Run

Budget Validation on Save check box is selected.

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Chapter 11 Managing Procurement Cards

See Also

PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook, "Working with VAT"

Chapter 8, "Using Commitment Control," Budget Checking Procurement Cards, page 200

Defining Account Distributions

Access the Reconcile Statement - Account Distribution page (click the Distribution button on the Reconcile

Statement - Procurement Card Transactions page).

Unit Price

SpeedChart

Displays the cost of the item purchased on the selected statement line.

Select a predefined distribution template to apply to the statement line.

ChartFields

You can manually override the distribution information for the statement line by changing any of the distribution field values in the scroll area.

Note. Once a purchase order is referenced by procurement card transactions you are no longer able to modify

the ChartFields or liquidate method on this page.

Note. If the procurement card transaction is associated with a PeopleSoft Maintenance Management work

order you are not able to modify the PeopleSoft General Ledger business unit, project related fields

(PeopleSoft Project Costing business unit, project, and activity), and asset information.

Details/Tax

Select the Details/Tax tab.

SUT Applicable (sales

and use tax applicable)

Tax method applied to the statement line. Appears by default from the Sales/Use

Tax page.

Sales/Use Tax % (sales

and use tax percentage)

Tax percentage that the system uses to calculate the use tax for the statement line.

Use Tax

Calculated tax amount for the statement line. Appears by default from the

Sales/Use Tax page.

Defining Statement Line Purchase Order Details

Access the Reconcile Statement - Purchase Details page (click the Purchase Order link on the Reconcile

Statement - Procurement Card Transactions page).

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Original PO

PO ID

PO Line

PO Sched (purchase

order schedule)

Vendor ID

Location

Item ID

Category

Vendor Item

Unit Price

Bill Includes Tax if

Applied

Tax Paid

The value of this field is Y (yes) if the purchase order ID came from a transaction on the bank statement. If the purchase order ID is missing or is generated by the system during the Auto Recon process, the value in this field is N (no). You can only modify the purchase order related data if the field value is N.

Displays the purchase order number associated with the statement line. This purchase order number is either an original purchase order on the bank statement, one that is populated by the system during the auto reconciliation process, or entered directly by the cardholder.

Note. Once a purchase order has been vouchered it is unavailable for selection on

this page. If this credit card has never been used on purchase orders, then all qualified purchase orders will be listed in the prompt. However, if this credit card has been used on purchase orders, then only those purchase orders paid by this card will be available in the prompt.

Displays the line number of a purchase order.

Displays the schedule number of a purchase order.

Select a vendor ID for either a 1099 merchant or non-1099 merchant. At times, a procurement card may be used to purchase services from a 1099 merchant.

Identifying the 1099 merchant as an authorized vendor ensures that you establish a valid tax reporting ID for the vendor. You can also set up vendors that are non-

1099 merchants. Identifying the non-1099 merchant vendor may be useful when renegotiating corporate contracts with a supplier.

Select the location address for the vendor.

For reporting, select an item ID that represents the internally classified part number for goods purchased with the procurement card.

If you do not want to enter an item ID, you can select an applicable item category for reporting purposes.

For reporting purposes, enter the vendor item ID.

Displays the cost of the goods on the statement line.

This check box setting appears by default from the Procurement Card Issuer page.

Select this check box to designate that tax was paid to the merchant at the point of sale. If tax was paid, no further documentation is required.

Maintenance WO (maintenance work order)

If the purchase order selected is associated with a PeopleSoft Maintenance Management work order the fields in this section will appear. You can modify the work order information that appears on this page or you can enter the work order information using this page.

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Chapter 11 Managing Procurement Cards

WO Business Unit

(PeopleSoft Maintenance

Management business unit)

Select the PeopleSoft Maintenance Management business unit associated with the work order you want to associate with the procurement card transaction.

Work Order ID

Select the work order you want to associate with the procurement card transaction.

Task Number

Resource Type

Resource Line No.

(resource line number)

Select the task number associated with the work order.

Select the resource type associated with the work order. Types are: Labor,

Material, and Tools.

Select the resource line number associated with the work order.

After you enter the work order information, the system will populate the account distributions on the

Reconcile Statement - Account Distributions page based on the work order distribution template.

Entering Statement Line Tax Information

Access the Sales/Use Tax page (click the Sales/Use Tax link on the Reconcile Statement - Purchase Details page).

Tax Applicability

Tax Destination

Select the tax applicability for the statement line. Most procurement card purchases typically use the sales or use tax method. Values are:

Direct Pay: Use tax is not calculated on the purchase order. The invoice is not created with use tax, but a line is written to the general ledger for the amount that the buyer pays directly to the state.

The use tax amount is calculated and displays on the Sales/Use Tax Information

For Schedule page and the Sales/Use Tax Details For Distribution page. The use tax amount will not display on the Maintain Purchase Order - Purchase Order page or the PO Total Amount Details page.

Exempt: Item purchased is exempt from sales and use tax.

Exonerated: Buyer does not have to pay sales tax. Tax is not calculated on the purchase order and PeopleSoft Payables does not pay taxes.

Sales Tax: Calculate and apply sales tax on the purchase order.

Use Tax: Calculate and apply use tax on the purchase order.

Select the location code of the final destination where the purchased goods are to be used. The system calculates sales and use tax amounts based on this information.

Tax Code

Enter the tax code. The tax code determines tax rate (or the sales and use tax code percent) used in the tax calculation.

SUT Code Pct (sales and

use tax code percentage)

If you do not know the SUT destination or the tax code, you can enter the tax percent for the transaction.

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Use Tax

Chapter 11

If you entered the correct tax code information or SUT code percentage, it calculates and displays the use tax.

Splitting Statement Lines

Access the Reconcile Statement - Split Transaction page (click the Split Line link on the Reconcile Statement

- Procurement Card Transactions page).

Reconcile Statement - Split Transaction page

Description

Billing Amount

Percentage

Enter text describing the purchase reflected on the line. You may want to state what item was actually purchased.

If you have split the transaction by description and want to split the line by amount as well, enter the appropriate amounts in this field for each line.

However, the amounts must add up to the original amount.

If you have split the transaction by description and want to split the line by percentage as well, enter the appropriate percentages in this field for each line.

However, the percentages must add up to 100%.

Using Distribution Templates

Access the Reconcile Statement - Distribution Template page (click the Distribution Template link on the

Reconcile Statement - Procurement Card Transactions page).

SpeedChart

Select the SpeedChart to assign to the distributions of all selected statement lines.

Alternatively, you can manually assign distributions for all selected lines by entering distribution information.

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Chapter 11 Managing Procurement Cards

Viewing VAT Line Information

Access the Credit Card Transaction Line VAT page (click the Line VAT button on the Reconcile Statement -

Procurement Card Transaction page).

Expanding and Collapsing Sections

To manage your VAT data more efficiently, you can expand and collapse sections to this page, which makes it easier for the user to manage.

Expand All Sections

Collapse All Sections

Click the expand button to scroll to and access every section on the page. You can also expand one or more sections by clicking the arrow next to the section's name.

Click to collapse all sections displaying only the header information. If you expand one or more sections, you can click the arrow next to the section's name to collapse the section.

Physical Nature

Physical Nature

Displays the default physical nature for transactions. Values are: Goods or

Services.

VAT Locations

Ship From Country

Ship From State

Ship to Country

Ship to State

Displays the vendor ship from location country. In the case of transactions involving goods or freight service transactions, this determines the VAT treatment.

If the ship from country is defined as tracking VAT by state or province, it displays the vendor ship from location state. In the case of transactions involving goods or freight service transactions, this determines the VAT treatment.

Displays the ship to location country. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

If the ship to country is defined as tracking VAT by state or province, it displays the ship to location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

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Managing Procurement Cards Chapter 11

VAT Defaults

Service Type

Reporting Country

If the transaction is for a service, it displays the VAT service type of Freight or

Other. The value in this field determines whether or not the special rules for freight transport within the European Union apply. The default value comes from the PeopleSoft Purchasing VAT defaulting hierarchy.

Place of Supply Driver

If the transaction is for a service, it displays the usual place of supply (such as the place where VAT is usually liable) for the service. This value helps to determine the place of supply country and the VAT treatment. Values are: Buyer's

Countries, Supplier's Countries, or Where Physically Performed. The default value comes from the PeopleSoft Purchasing VAT defaulting hierarchy.

Displays the country for which this VAT is to be reported. This is the VAT

Entity VAT registration country and determines many of the VAT defaults.

Defaulting State

If the reporting country requires that VAT be tracked by state or province, this field displays the state within the reporting country that is used to retrieve values from the VAT Defaults table.

Displays the registration country and ID of the vendor.

Vendor Registration

Country and Vendor

Registration ID

Exception Type

Certificate ID

Displays the exception granted to the VAT entity. Values are: None, Exonerated, or Suspended. This value is specified on the VAT entity registration.

If applicable, displays the ID of the VAT exception certificate that may have been issued to the VAT entity.

Calculate at Gross or

Net

Indicates how VAT is calculated. Values are:

Gross: The system calculates VAT before it applies any early payment discounts.

Net: The system calculates VAT after it deducts early payment discounts. If there are two percentage discounts, the system uses the larger of the two when it calculates VAT. The system does not use discount amounts, only discount percentages.

The default value comes from the VAT entity registration driver.

Recalculate at Payment

Select this check box to enable the recalculation of VAT at payment time to allow for any early payment discounts, if you are calculating VAT at gross. This causes the system to adjust the VAT amount at the time of payment if the discount has been taken. This is set on the VAT entity registration driver.

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Chapter 11 Managing Procurement Cards

Declaration Point

Rounding Rule

Use Type

Include Freight

Displays the declaration point for a good or service when you want VAT transaction information to be recognized for reporting purposes. Values are:

Invoice: VAT is recognized at time of invoice.

Payment: VAT is recognized at time of payment.

Delivery: VAT is recognized on delivery.

This value may be set at several levels in the VAT hierarchy: VAT entity registration, business unit options, vendor, or vendor location.

Displays the VAT rounding rule. The value comes from the VAT country, VAT entity, vendor or vendor location drivers. Values are:

Natural Round: Amounts are rounded normally (up or down) to the precision specified for the currency code. For example, for a currency defined with two decimal places, 157.4659 would round up to 157.47, but 157.4649 would round down to 157.46.

Round Down: Amounts are rounded down. For example, for a currency defined with two decimal places, 157.4699 would round down to 157.46.

Round Up: Amounts are rounded up with a rounding precision to one additional decimal place. For example, for a currency defined with two decimal places,

157.4659 would round up to 157.47, but 157.4609 would round down to 157.46.

Determines the split between recoverable (taxable) and nonrecoverable

(nontaxable) VAT.

For Canadian public sector, the use type also determines the rebate of the nonrecoverable VAT. VAT rebates are calculated based on statutory rebate rates that are established for each public service body.

The value comes from the VAT defaulting hierarchy, either from the item, item business unit, item category, vendor location, vendor, or purchasing options.

If selected, the system includes any freight amounts in the VAT basis by calculating VAT on the merchandise amount, plus any freight amount. This option is only available for exclusive VAT calculation. The value comes from the

VAT entity registration driver.

Include Miscellaneous

No VAT Receipt

If selected, the system includes any miscellaneous charge amounts in the VAT basis by calculating VAT on the merchandise amount, plus any miscellaneous charge amount. This option is only available for exclusive VAT calculation. The value comes from the VAT entity registration driver.

If the Claiming Tax Credit check box is not selected, this field indicates whether a separate VAT receipt is available as proof for recovery of VAT. Select this field to indicate that no VAT receipt is available. This causes zero VAT recovery and rebate amounts to be recorded.

Domestic Reverse

Charge Goods

Select whether to indicate that the goods on transaction lines associated with the

VAT driver are domestic reverse charge goods.

Place of Supply Country Displays the country in which the VAT is liable. An algorithm determines the

default value.

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Treatment

Chapter 11

Displays the VAT treatment. Complex algorithms determine the VAT treatment.

Values are:

Domestic Goods Purchase: If the ship from and ship to countries are the same, and the vendor is registered for VAT, the transaction is treated as domestic.

Domestic Service Purchase: If the buyer and seller are both located in the country where the VAT is liable, the transaction is treated as domestic

EU Goods Purchase: If the ship from and ship to countries are different, the system determines whether both countries are located within the European

Union. If so, the system looks at the VAT registration for each trading partner to determine whether the transaction should be treated as an intra-European Union purchase, domestic, or outside the scope of VAT.

EU Service Purchase: If each trading partner is located and registered in different

European Union countries, and the VAT on a service is liable in the buyer's country, the transaction is treated as a self-assessed European Union services purchase.

Self-Assess Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the European

Union, and the vendor is not registered in the ship to country, the transaction would be treated as an import. If the flag on the entry in the VAT Country table for the VAT reporting country indicates that VAT on imports should be selfassessed, the transaction is treated as a self-assess goods import, and both input and output VAT are recorded.

Self-Assess Service Import: If each trading partner is located and registered in different countries, and the VAT on a service is liable in the buyer's country, the transaction is treated as a self-assessed services import.

Zero-rated Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the European

Union, and the vendor is not registered in the ship to country, the transaction would be treated as an import. If the flag on the entry in the VAT Country table for the VAT reporting country indicates that only input VAT should be recorded on imports, the transaction is to be treated as a zero-rated goods import.

Outside of Scope: If the supplier is not registered for VAT, or if the VAT is liable in a country other than the VAT reporting country, the transaction is treated as outside the scope of VAT.

No VAT Processing: For transactions where the physical nature is goods, if the ship to country has not been defined as a VAT country and the VAT reporting country on the transaction is blank, no VAT information is recorded.

Within PeopleSoft detail, VAT treatment values on the transaction lines are used to apply the precise defaults applicable to the transaction lines. The treatment is determined based the rules that are applicable to the transaction.

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Chapter 11

Applicability

VAT Code

Tax Rate

Transaction Type

Managing Procurement Cards

Displays the VAT status. Values are:

Taxable

Exempt (not subject to VAT)

Outside of Scope of VAT

Suspended

Exonerated

Not Applicable (valid only when VAT treatment is no VAT processing)

Displays the VAT code that defines the rate at which VAT is calculated for this line.

Displays the rate at which the transaction is charged VAT.

Displays the code that categorizes and classifies this transaction for VAT reporting and accounting.

Adjust/Reset VAT Defaults

Any changes that you make to fields on this page may affect VAT defaults on this page. For accuracy and consistency, use the following fields to adjust affected VAT defaults or to reset all VAT defaults. Adjusting or resetting VAT defaults only affects fields within the VAT Defaults group box.

Adjust Affected VAT

Defaults

Click this button to have the system adjust the VAT defaults that are affected by your changes. All changes that you have made to VAT defaults on this page that affect other VAT defaults on this page are retained.

Click the i button to list the fields that are to be adjusted.

Note. PeopleSoft recommends that you always click the Adjust Affected VAT

Defaults button after changing any defaults on the VAT page.

Levels

Use to specify the levels to reset when you click the Reset All VAT Defaults button. Values are:

All lower levels: Resets all VAT defaults at lower levels for this page.

This and all lower levels: Resets all VAT defaults on this page and at any lower levels of this page.

This level only: Resets all VAT defaults on this page.

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Managing Procurement Cards Chapter 11

Reset All VAT Defaults

Click to have the system reset the VAT defaults based on the levels value that you selected. Any changes that you have previously made to VAT defaults is lost.

Note. Reset all VAT Defaults completely redetermines the VAT defaults. This

does not necessarily mean that they are reset to their original values. For example, the user may not have changed any VAT default values, but if a VAT driver field changes, reset redetermines all of the defaults based on the new driver value.

VAT Calculations

Basis Amount

Displays the amount on which the VAT is calculated in the transaction currency.

If VAT is being calculated at net, this amount is net of any discounts.

Displays the system calculated VAT amount in the transaction currency.

Calculated Amount

Override VAT Amount

Displays the amount of VAT stated on the credit card statement.

This is the amount transmitted by the merchant on the inbound credit card statement. This amount is compared to the system-calculated VAT amount. If the override VAT amount is outside of the calculated VAT amount, plus the VAT tolerance amounts defined on the VAT driver tables for procurement cards, an exception is noted in the field for the tax dispute amount.

See Also

PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook, "Working with VAT"

Running the Grace Period Has Expired Application Engine Process

(PO_CCEXP_WF)

This section lists the page used to run the Grace Period Has Expired process.

Use this process to notify the cardholders that there are transactions that need to be approved or reconciled.

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Chapter 11 Managing Procurement Cards

Page Used to Run the Grace Period Has Expired Application Engine Process

Page Name

Grace Period Expired

Workflow

Definition Name

CC_BK_EXP_PRCS_WF

Navigation

Purchasing, Procurement

Cards, Process Statements,

Grace Period Expired

Workflow

Usage

Run this process to notify users who did not reconcile their statements on time.

Upon notification, cardholders must change the statement status to

Approved.

Resolving Disputed Transactions

This section discusses how to view and resolve procurement card transaction amount disputes.

Pages Used to Resolve Disputed Transactions

Page Name

Review Disputes Search

Review Disputes -

Procurement Card

Transactions

Review Disputes - Line

Comments

Definition Name

CC_RECON_SRCH

CC_TRANS_DISPUTE

CC_TRANS_COMNT_SEC

Navigation Usage

Purchasing, Procurement

Cards, Reconcile, Review

Disputes, Review Disputes

Search

Enter search criteria for the disputed transaction.

Click the Search button on the Review Disputes Search page.

View and resolve disputed transactions. The statement lines that appear on this page are lines with a dispute amount where the Credit

Collected check box has been cleared.

Click the Comments button on the Review

Disputes - Procurement

Card Transactions page.

Enter comment text that remains with the associated procurement card transaction dispute.

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Managing Procurement Cards

Page Name

Expected Credits

Definition Name

RUN_POY8020

Credit Detail By MCG

(Credit Detail By Merchant

Category Group)

RUN_POY8060

Chapter 11

Navigation

Purchasing, Procurement

Cards, Reports, Expected

Credits

Purchasing, Procurement

Cards, Reports, Credit

Detail By MCG

Usage

Run the Expected Credits multiprocess job

(POY8020). This process will generate the Expected

Credits Crystal report

(POY8020).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

Run the Credit Detail by

MCG multiprocess job

(POY8060). This process will generate the Credit

Detail By MCG Crystal report (POY8060).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

Viewing and Resolving Procurement Card Transaction Amount Disputes

Access the Review Disputes page.

Dispute Amount

Collected

Dispute Amount

Description

Select this check box to indicate that you have received the credit for the disputed amount. When you select the Collected check box, the transaction no longer appears on the Dispute page.

Displays the difference in the amount between your records and the transaction amount. Appears by default from the Reconcile Statement - Procurement Card

Transactions page.

Appears by default from the Reconcile Statement - Procurement Card

Transactions page, but you can change it here.

Viewing the Statement Summary

This section discusses how to view the statement summary.

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Chapter 11 Managing Procurement Cards

Page Used to View the Statement Summary

Page Name Definition Name

Review Statement Selection

Criteria

CC_TRANS_LDSFETCH

Statement Summary

CC_TRANS_LDSUMMARY

Navigation Usage

Purchasing, Procurement

Cards, Review Bank

Statement, Review

Statement Selection Criteria

Enter selection criteria for statements you want to view.

Click the Search button on the Review Statement

Selection Criteria page.

Use this page to view statement summary by credit card vendor, billing date, or statement status.

Viewing the Statement Summary

Access the Statement Summary page (Purchasing, Procurement Cards, Review Bank Statement, Review

Statement Selection Criteria, and click the Search button on the Review Statement Selection Criteria page).

Status

Voucher ID

Displays the statement status for the statement summary. Values include All

Trans (all transactions), Approved, Closed, Initial, Not Closed, Staged, and

Verified.

Displays the voucher ID. Only statements with a Closed status may have a voucher ID. To obtain a voucher ID, you must first create a voucher.

Staging Procurement Card Transactions for Voucher Processing

This section discusses how to run the voucher load process.

Use the ProCard Load Voucher Stage Application Engine process (PO_CCVSHRSTG) to populate data into the new staging tables for the Voucher Build process.

Note. All transactions in the staging tables must have an Approved status.

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Managing Procurement Cards Chapter 11

Page Used to Stage Procurement Card Transactions for Voucher Processing

Page Name

Voucher Stage

Definition Name

RUN_CC_VCHRSTG

Navigation

Purchasing, Procurement

Cards, Process Statements,

Load Voucher Stage,

Voucher Stage

Usage

Use the ProCard Load

Voucher Stage process to move approved transactions to the voucher staging tables. Data in the

CC_TRANS_LINE table is written into the Voucher

Line staging table

(VCHR_LING_STG) and data in the

CC_TRANS_DIST table is written into the Voucher

Distribution staging table

(VCHR_DIST_STG).

Running the Voucher Load Process

Access the Voucher Stage page (Purchasing, Procurement Cards, Process Statements, Load Voucher Stage,

Voucher Stage).

Process Request Parameters

Card Issuer

Billing Date

Select the credit card vendor that you want to process.

Select the billing date for the statements that you want to process. The PeopleSoft

Purchasing system validates the billing date against the dates passed by the credit card provider.

Create Vouchers

Select the method to create the vouchers. Values are By Business Unit or By

Credit Card Number.

Select the business unit for the statements that you want to pay.

Business Unit

Invoice Number

Enter the invoice number for the statement. The invoice number is restricted to

22 characters.

Max Voucher Lines

(maximum voucher lines)

Enter the maximum number of lines created into a single voucher.

Transaction Status Criteria

Approved Status

Select this option to process only the transactions that are approved.

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Chapter 11 Managing Procurement Cards

Any Status Except

Closed

Select this option to process transactions that are not closed (this includes transactions that are not approved nor verified).

Budget Status Criteria

Valid Budget Status

Any Budget Status

Select this option to process only the transactions that pass budget validation.

Select this option to process transactions that were never budget checked.

ChartField Status Criteria

Valid ChartField Status Select this option to process only the transactions that have no ChartField error.

Any ChartField Status

Select this option to process transactions that fail the ChartField combination edits.

Analyzing Procurement Card Information

This section lists the pages used to analyze procurement card information.

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Managing Procurement Cards Chapter 11

Pages Used to Analyze Procurement Card Information

Page Name

Purchase Exceptions

Definition Name

RUN_POY8010

Credit Detail By MCG

(Credit Detail By Merchant

Category Group)

RUN_POY8060

Navigation

Purchasing, Procurement

Cards, Reports, Purchase

Exceptions

Purchasing, Procurement

Cards, Reports, Credit

Detail By MCG

Usage

Run one of these multiprocess jobs: Exceed

Limit-Per-Trans (POY8010) which will generate the

Exceed Limit-Per-Trans

Crystal report (POY8010),

Exceed Limit-Per-Cycle

(POY8011) which will generate the Exceed Limit-

Per-Cycle Crystal report

(POY8011), Exceed Trans-

Per-Day (POY8012) which will generate the Exceed

Trans-Per-Day Crystal report (POY8012), Exceed

Trans-Per-Cycle

(POY8013) which will generate the Exceed Trans-

Per-CycleCrystal report

(POY8013), or

Unauthorized Commodity

(POY8014) which will generate the Unauthorized

Commodity Crystal report

(POY8014).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

Run the Credit Detail by

MCG multiprocess job

(POY8060). This process will generate the Credit

Detail By MCG Crystal report (POY8060).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

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Chapter 11

Page Name

Non-Preferred Supplier

Definition Name

RUN_POY8061

Top Supplier Chains

Top Merchant Category

MCC Exceptions (merchant category code exceptions)

RUN_POY8062

RUN_POY8063

RUN_POY8064

Managing Procurement Cards

Navigation

Purchasing, Procurement

Cards, Reports, Non-

Preferred Supplier

Purchasing, Procurement

Cards, Reports, Top

Supplier Chains

Purchasing, Procurement

Cards, Reports, Top

Merchant Category

Purchasing, Procurement

Cards, Reports, MCC

Exceptions

Usage

Run the Non-Preferred

Supplier multiprocess job

(POY8061). This process will generate the Non-

Preferred Supplier Crystal report (POY8061).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

Run the Top Supplier

Chains multiprocess job

(POY8062). This process will generate the Top

Supplier Chains Crystal report (POY8062).

Run the Top Merchant

Category multiprocess job

(POY8063). This process will generate the Top

Merchant Category Crystal report (POY8063).

Run the MCC Exceptions multiprocess job

(POY8064). This process will generate the MCC

Exceptions Crystal report

(POY8064).

See Appendix D,

"PeopleSoft Purchasing

Reports," PeopleSoft

Purchasing Reports, page

1342.

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Part 3

Using Vendor Rebates

Chapter 12

Understanding Vendor Rebates

Chapter 13

Defining Vendor Rebate Agreements

Chapter 14

Generating Rebate Accruals

Chapter 15

Maintaining Vendor Rebate Agreement Association with Purchase Orders

Chapter 16

Managing Vendor Rebate Claims

Chapter 17

Analyzing Vendor Rebates

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Chapter 12

Understanding Vendor Rebates

This chapter provides an overview of vendor rebates.

Understanding Vendor Rebates

Today's companies are faced with competitive pressures to reduce and manage costs and to have good working relationships with their suppliers. As competition intensifies, the successful management and profitability of vendor rebates is essential.

One of the ways that an organization can improve its profit margin is in the successful analysis, creation, processing, and tracking of vendor rebates in its environment. Vendor rebate information is an extremely valuable asset if you can obtain and use it properly. Without the means to capture and share that information, costly mistakes and loss of money can occur. You need functionality that provides the right information at the right time to the right individuals.

With the vendor rebate functionality of PeopleSoft Purchasing, you can effectively manage vendor rebates and increase revenue. The vendor rebate functionality that resides in PeopleSoft Purchasing integrates with other PeopleSoft applications to give you a complete and overall solution to the full life cycle of the vendor rebate. Through the implementation of the vendor rebate functionality, you can move one step closer to achieving success in managing vendor rebates and tracking the effectiveness of those vendor rebates.

This diagram illustrates the business process flow for vendor rebates were a vendor rebate agreement has been established and a variety of rebate options and PeopleSoft system processes, such as notifications and claims, help manage the rebate process:

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Understanding Vendor Rebates Chapter 12

310

Business process flow of vendor rebates and how the process integrates with other applications

The next sections describe the process details.

Vendor Rebate Definition

The most important step in managing a successful vendor rebate program is the accurate definition of vendor rebate agreements. Using vendor rebate agreements in PeopleSoft Purchasing, you can capture the complex rules that are related to rebates from the supplier in a user-friendly and concise manner. You can define multiple rebate rules within a rebate agreement enabling you to fully define the contractual agreement with the supplier. PeopleSoft Purchasing supports a variety of rebate rules. The rebate rules supported are:

Standard rebate: This type of rebate specifies a rebate factor (percentage or amount) based on the purchase threshold levels you defined during a specified time period. Increases in purchased amounts can reach a higher threshold level, which changes the rebate factor for additional purchases.

Retrospective rebate: This type of rebate specifies a rebate factor (percentage or amount) based on the purchase threshold levels you defined during a specified time period. Increases in purchased amounts can reach a higher threshold level, which changes the rebate factor for additional purchases as well as all the purchases to date, within the specified rebate period.

Copyright © 1992, 2011, Oracle and/or its affiliates. All Rights Reserved.

Chapter 12 Understanding Vendor Rebates

Growth bonus rebate: This type of rebate is based on a specified increase in purchases for a specific item or item category. For the growth bonus rebate, the user needs to be able to define the items, item categories, or both that will be considered for the growth bonus, the target percentage increase or growth that will trigger the rebate, and the purchase amount or quantity for each item or category that will be the basis to determine the growth percentage. The purchase volume for the current period will be compared to these values to determine whether the growth targets were achieved.

Marketing contribution rebate: This type of rebate is based on amounts, with the rebate amount being based on amount or percentage. Unlike the other rebate rules types, the marketing contribution is independent of the purchase transactions. It's a one-time rebate for the life of the rebate agreement.

Flat amount rebate: This type of rebate specifies a flat amount based on the purchase threshold levels you defined during the rebate agreement life. Flat rebate amount can be either prorated or not prorated.

See Chapter 13, "Defining Vendor Rebate Agreements," page 313.

Vendor Rebate Association with Purchase Orders

The vendor rebate assignment with purchase orders is another crucial area. When a purchase order is created in PeopleSoft Purchasing, the vendor rebate agreement association will automatically occur. However, due to business constraints in the business world, vendor rebate assignment when the purchase order is created might not be possible due to the availability of the vendor rebate agreement. This is similar to the beginning of a new rebate agreement period when purchase orders need to be released but the vendor rebate agreements are still in a negotiation phase with the supplier.

To support these types of exceptions, the vendor rebate functionality includes the Backdate Vendor Rebates component. Using the Backdate Vendor Rebates component, you can:

Associate vendor rebate agreements with one or more purchase order lines at the same time.

Dissociate vendor rebate agreements from one or more purchase order lines at the same time.

Modify associated vendor rebate agreements line by line for purchase orders.

See Chapter 15, "Maintaining Vendor Rebate Agreement Association with Purchase Orders," page 361.

Vendor Rebate Claims Management

One of the last steps in managing a successful vendor rebate program is to be proactive in claiming rebate amounts from the supplier. When rebates are accrued, you can generate claims for the accrued rebates and inform suppliers of the rebate claims and payment terms. To assist suppliers in paying rebates, suppliers can pay for the rebate using a variety of settlement methods: adjustment voucher, check, credit memo, direct debit, draft, and electronic funds transfer (EFT).

PeopleSoft Purchasing provides you with the claims management workbench to assist you with the management of claims and the payment process for these claims. The claims management workbench enables you to:

Review, approve, and generate a formal claim to send to the supplier.

Settle a claim.

Reconcile incoming payments.

Defer a claim to the next payment cycle.

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Create deductions or reverse deductions to accommodate overdue payments from the supplier.

Overall, the claims management workbench enables you to track what rebates have been paid and what is due from suppliers. This helps ensure that organizations collect rebate claims in a timely fashion and results in cost savings.

The claims management processes integrate with PeopleSoft Payables and PeopleSoft Receivable to complete the payment cycle.

See Chapter 16, "Managing Vendor Rebate Claims," page 367.

See Chapter 14, "Generating Rebate Accruals," page 345.

Vendor Rebate Effectiveness Evaluation

The final step in managing a successful vendor rebate program is evaluating the profitability of the vendor rebates that are offered from the suppliers. Reviewing this type of information from time to time enables you to make adjustments to the vendor rebate structure and gives you the necessary information so that you can plan and carry out profitable rebates in the future.

PeopleSoft Purchasing provides you with the rebate analysis workbench to assist you with evaluating and determining the effectiveness and profitability of a vendor rebate. Using the rebate analysis workbench, you can perform multiple inquiries to analyze vendor rebates. You can perform rebate threshold analysis and time period analysis, view purchase orders that have not been received that are associated with the vendor rebate, and view accrued rebate details.

See Chapter 14, "Generating Rebate Accruals," page 345.

See Chapter 17, "Analyzing Vendor Rebates," page 401.

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Chapter 13

Defining Vendor Rebate Agreements

This chapter provides overviews of vendor rebate agreement statuses and vendor rebate rule types and discusses how to:

Define vendor rebate agreements.

Dispatch vendor rebate agreements.

Understanding Vendor Rebate Agreement Statuses

Multiple statuses can occur for a vendor rebate agreement during the life of the agreement. The available statuses for a vendor rebate agreement and the eligible processes for each status are:

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Defining Vendor Rebate Agreements Chapter 13

Vendor Rebate Agreement Status Edits, Allowed Actions, Eligible Processes

Open

The user must have entry authority.

Accrual transactions are created and claims are generated:

If accruals are created and claims generated (other than canceled claims), the user cannot change rule information for the rebate agreement.

Accrual transactions have been created and no claims have been generated, or claims exist in canceled status: the user can change the rebate rule information.

Rebate Agreement references on purchase order but no accrual transactions have been generated:

The user cannot change:

General Details: Vendor,Vendor ID,Currency, and Rate Type. Begin date and expiration date can be modified.

Rebate Options: Corporate Agreement,Eligible PO Business Units,

Include Automatically PO Adhoc Items, and Open Item Rebate

Agreement check boxes. The Open Item Rebate Agreement check box can be selected if it wasn't previously, but it cannot be cleared if previously selected.

Rebate lines and exceptions: The user cannot change or delete an existing rebate line. The user can mark the line inactive. You can add additional lines and exceptions.

Rebate Rules: The user can modify all rebate agreement rules information.

Rebate agreement is not referenced on a purchase order:

The user can change all the information on the rebate agreement.

Approved

The user must have approval authority.

The user cannot modify any rebate information except rebate status and dispatch fields.

Rebate agreements only in approved status can have the following processes run against them:

Rebate agreements can be dispatched.

Accrual transactions can be created.

Claims can be generated.

Claims Reconciliation and the Overdue and Cancel Overdue process can be processed if the rebate agreement is in either an Approved or

Hold status.

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Chapter 13 Defining Vendor Rebate Agreements

Vendor Rebate Agreement Status

Cancel

Edits, Allowed Actions, Eligible Processes

The user must have cancel authority.

The user cannot modify any rebate information except for rebate status.

The user can cancel rebate agreements only if no rebate agreement references are on a purchase order line. If any rebate agreement references are on a purchase order line, clear the references using the Maintain

Purchase Order - Purchase Order page, the Express Purchase Order -

Purchase Order page, or the Backdate Vendor Rebates page.

Hold

The user must have hold authority.

The user cannot modify any rebate information except for rebate status.

The user can put the rebate agreement on hold even if rebate references are on the purchase order, accrual transactions have been created, and claims have been generated.

No activity can occur against a rebate agreement that is in a hold status. You can perform payment activities against the rebate agreement, such as Claims

Reconciliation and Overdue and Cancel Overdue processes.

Close

The user must have close authority.

The user cannot modify any rebate information except for rebate status.

The user controls the close action on the rebate agreement irrespective of the rebate references. The system issues warning messages based on the references. It issues individual messages based on the following rebate references:

Pending claims (claims in Open, Approved, Pending Payment, and

Partial Paid statuses).

Accrual transactions that have been created and no claims have been generated or claims have been generated, but they are in a Cancel or

Paid status.

Rebate agreement references on a purchase order and no accrual transactions have been generated.

Understanding Vendor Rebate Rule Types

PeopleSoft Purchasing provides five different vendor rebate rule types that you can associate with a vendor rebate agreement. These vendor rebate rule types are:

Stepped/Standard.

Retrospective.

Flat Amount.

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Growth Bonus.

Marketing Contribution.

Stepped/Standard

This is the simplest vendor rebate rule type and is based on amounts or quantities. Standard/Stepped rebate rule types specify a rebate factor percentage that is based on the defined purchase threshold levels during the rebate agreement life. Usually the higher the threshold, the greater the rebate percentage, thus awarding a greater vendor rebate amount for a supplier who makes large purchases.

For example, a rebate agreement is negotiated with a supplier, which states that:

Purchases between 0 USD and 100,000 USD receive a 1 percent rebate.

Purchases between 100,001 USD and 500,000 USD receive a 2 percent rebate.

Purchases over 500,001 USD receive a 3 percent rebate.

Rebates will be paid quarterly.

The method of payment will be by check.

Assume that the purchases for the quarter were 650,000 USD. The rebate at the end of the quarter would be

13,500 USD.

13,500 USD = ((100,000 USD × .01) + (400,000 USD × .02) + (150,000 USD × .03))

Retrospective

Retrospective rebate rule types are based on amounts or quantities. Retrospective rebate rule types specify a rebate factor percentage that is based on the defined purchase threshold levels during the rebate agreement life. Increases in purchased amounts can reach a higher threshold level, which changes the rebate factor for additional purchases as well as all the purchases to date within the rebate agreement life.

For example, a rebate agreement is negotiated with a supplier, which states that:

Purchases between 0 USD and 100,000 USD receive a 1 percent rebate.

Purchases between 100,001 USD and 500,000 USD receive a 2 percent rebate retrospectively back to 1

USD.

Purchases over 500,001 USD receive 3 percent rebate retrospectively back to 1 USD.

Rebates will be paid quarterly.

Assume that the purchases for the quarter were 650,000 USD. The rebate at the end of the quarter would be

19,500 USD.

19,500 USD = (650,000 USD × .03)

Flat Amount

Flat amount rebate rule types are based on amounts or quantities. Flat rebate rule types specify a flat amount based on the defined purchase threshold levels during the rebate agreement life. Flat rebate amount can be either prorated or not prorated.

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Chapter 13 Defining Vendor Rebate Agreements

For example, a rebate agreement is negotiated with a supplier, which states that:

Purchases between 0 USD and 100,000 USD receive a 1000 USD rebate, prorated.

Purchases between 100,001 USD and 200,000 USD receive a 5000 USD rebate, prorated.

Rebates will be paid quarterly.

Assume that the purchases for the quarter were 150,000 USD. The rebate at the end of the quarter would be

3,500 USD.

3,500 USD = (1,000 USD + 50 percent of 5,000 USD)

This is another example not using prorate option:

Purchases between 0 USD and 100,000 USD receive a 1000 USD rebate, prorated.

Purchases between 100,001 USD and 200,000 USD receive a 5000 USD rebate, not prorated.

Rebates will be paid quarterly.

Assume that the purchases for the quarter were 150,000 USD. The rebate at the end of the quarter would be

6,000 USD.

6,000 USD = (1,000 USD + 5,000 USD)

Growth Bonus

Growth bonus rebate rule types are based on a specified increase in purchases for a specific item or item category. For this rebate rule type, you can define the items, item categories that will be considered for the growth bonus, or both, the target percentage increase or growth that will trigger the rebate, and the purchase amount or quantity for each item or item category that will be the basis to determine the growth percentage.

The purchase volume for the current period will be compared to these values to determine whether the growth targets were achieved. You can also define rebate per growth percentage threshold levels.

For example, a rebate agreement is negotiated with a supplier, which states:

Receive a 2 percent growth bonus on a particular category (A) of products under the condition that the purchasing turnover has increased by 10 percent or more year on year.

Rebates will be paid quarterly.

Assume that the purchases were:

Category

A

B

Fourth Quarter 2002

400,000 USD

200,000 USD

600,000 USD

Fourth Quarter 2003

450,000 USD

200,000 USD

650,000 USD

Percentage Increase

12.5 percent

0 percent

The rebate at the end of the quarter would be 1,000 USD.

1,000 USD = (50,000 × .02)

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Defining Vendor Rebate Agreements Chapter 13

Marketing Contribution

Marketing Contribution rebate rule types are based on amounts, with the rebate amount being based on amount or percentage. Unlike the other rebate rules types, the marketing contribution is independent of the purchase transactions. It is a one-time rebate for the entire rebate agreement life.

For example, a contract is negotiated with a supplier for the quarter, which states:

Receive a 1.5 percent marketing contribution on purchases for the previous period.

Assume that the purchases for the previous quarter were 650,000 USD. The rebate at the end of the quarter would be 9,750.00 USD.

9,750 USD = (650,000 USD × .015)

Rebate Agreement Examples

This is an example of a quarterly rebate agreement using retrospective rule with quantity basis and marketing contribution:

A rebate agreement with a supplier contains three items:

Item A: UOM EA

Item B: UOM EA

Item C: UOM CS (CS: case, 1 CS = 4 EA)

The rebate rules for the rebate agreement state:

Purchases between 0 and 10,000 EA receive a 1 percent rebate.

Purchases between 10,000 and 50,000 EA receive a 2 percent rebate retrospectively back to 1 EA.

Purchases over 50,000 EA receive a 3 percent rebate retrospectively back to 1 EA.

Additionally, we receive a 1 percent marketing contribution on purchases for the same quarter last year.

Rebates will be paid quarterly.

Method of payment will be by check.

Assume that the purchases for the same quarter last year were 300,000 USD. The following table illustrates the purchases for the current quarter:

Item

Item A

Item B

Item C

Total Purchase

Quantity

4,000

6,000

4,000

26,000

Unit of Measure

EA

EA

CS

EA

Unit Price

10.00 USD

20.00 USD

50.00 USD

Amount

40,000

120,000

200,000

360,000

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Chapter 13 Defining Vendor Rebate Agreements

Note. The total units in EA are calculated as ((4000 + 6000 + (4000 × 4))

The rebate at the end of the quarter would be 10,200 USD.

10,200 USD = ((360,000 USD × .02) + (300,000 × .01))

This is another example of rebate agreement using retrospective, marketing contribution, and growth bonus rules combined:

Purchases between 0 USD and 100,000 USD receive a 1 percent rebate.

Purchases between 100,001 USD and 500,000 USD receive a 2 percent rebate retrospectively back to 1

USD.

Purchases over 500,001 USD receive a 3 percent rebate retrospectively back to 1 USD.

Additionally, we receive a 1 percent marketing contribution on purchases for the same quarter in the previous year.

Also, we receive a 2 percent growth bonus on a particular category (A) of products under the condition that the purchasing turnover has increased by 10 percent or more year on year.

Rebates will be paid quarterly.

Method of payment will be by check.

Assume that the purchases for the quarter were 650,000 USD. The purchases for the same quarter last year were 600,000 USD.

Category

A

B

Fourth Quarter 2002

400,000 USD

200,000 USD

600,000 USD

Fourth Quarter 2003

450,000 USD

200,000 USD

650,000 USD

Percentage Increase

12.5 percent

0 percent

The rebate at the end of the quarter would be 26,500 USD.

26,500 USD = (650,000 USD × .03) + (600,000 × .01) + (50,000 × .02)

Prerequisites

Before you begin creating vendor rebate agreements, you should:

Define vendor rebate agreement authorizations for each rebate manager using the Rebate Authorizations page.

See PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining User Preferences,"

Defining Vendor Rebate Agreement Authorizations.

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Defining Vendor Rebate Agreements Chapter 13

Specify the rebate ID security control option using the Purchase Order Authorizations page.

See PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining User Preferences,"

Defining Purchase Order User Authorizations.

(Optional) Define vendor rebate settlement tolerance settings using the Set Controls - Contracts page.

See PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Defining Procurement

Options," Defining Contract and Vendor Rebate Control Parameters.

Set up automatic numbering for vendor rebate agreement IDs and claim IDs using the Auto Numbering page.

See PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining Financials and Supply

Chain Management Common Definitions," Setting Up Automatic Numbering.

Define the accounting entry template for use with vendor rebate agreements using the Accounting Entry

Template page.

See PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining Financials and Supply

Chain Management Common Definitions," Creating Accounting Entry Templates.

Define reason codes to be used for claims adjustment using the Reason Codes page.

See PeopleSoft Enterprise Application Fundamentals 9.1 PeopleBook, "Defining Financials and Supply

Chain Management Common Definitions," Defining Additional Common Information.

Create bill to customers for each vendor using the Vendor Information - Identifying Information page if the settlement method for the rebate agreement is anything but Adjustment Voucher.

See PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook, "Maintaining Vendor

Information," Entering Vendor Identifying Information.

(Optional) Define the matching default hierarchy. The vendor rebate functionality requires the matching functionality to be implemented.

See Chapter 7, "Using Default Hierarchies," Understanding the Matching Default Hierarchy, page 165.

Defining Vendor Rebate Agreements

To define vendor rebate agreements, use the Rebate Agreement component (VRBT_AGREEMENT).

This section discusses how to:

Define rebate agreements.

Define rebate options.

Update rebate agreement value added tax (VAT) details.

Define rebate rules.

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Chapter 13 Defining Vendor Rebate Agreements

Pages Used to Define Vendor Rebate Agreements

Page Name Definition Name

Rebate Agreement - Rebate

Agreement

VRBT_HDR

Rebate Agreement - Copy

Rebate Agreement

VRBT_COPY_SEC

Vendor Search VENDOR_LOOKUP_SEC

Rebate Agreement - Specify

Vendor Locations

VRBT_VNDR_LOC

Rebate Agreement - Rebate

Comments

VRBT_COMMENTS

Rebate Agreement - Rebate

Activity

VRBT_ACTIVITY

Rebate Agreement - Vendor

Primary Contact Info

VBRT_CNTCTPHNSEC

Navigation Usage

Purchasing, Vendor

Rebates, Rebate Agreement

Define the overall rebate agreement information for the rebate agreement.

Click the Copy From

Existing Rebate Agreement link on the Rebate

Agreement - Rebate

Agreement page.

Copy an existing rebate agreement to a new rebate agreement.

Click the Vendor Search link on the Rebate

Agreement - Rebate

Agreement page.

Search for the vendor that you want to associate with the rebate agreement.

Click the Specify Vendor

Locations link on the

Rebate Agreement - Rebate

Agreement page.

Define the vendor locations that apply to the rebate agreement. If you specify vendor locations, then the rebate agreement is applicable to purchase orders that are created for the specific vendor location.

If vendor locations are not defined for the rebate agreement, then the rebate agreement is applicable to purchase orders irrespective of the vendor locations.

Click the Add Comments link on the Rebate

Agreement - Rebate

Agreement page.

Define rebate agreement comments.

Click the Rebate Activities link on the Rebate

Agreement - Rebate

Agreement page.

Enter activities and the due dates that are associated with the rebate agreement.

Also, you can mark when those activities have been completed.

Click the Primary Contact

Info link on the Rebate

Agreement - Rebate

Agreement page.

Review the vendor's primary contacts address and other contact information, such as telephone number and pager number.

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Defining Vendor Rebate Agreements

Page Name

Rebate Agreement -

Activity Log

Definition Name

PO_MAINT_POP

Rebate Agreement - Item

Search

PO_ITEM_SEARCH_SP

Category Search

CAT_SEARCH_SEC

Rebate Agreement - Item

Category Exceptions

VRBT_CAT_EXCPTN

Rebate Agreement - Rebate

Options

VRBT_OPTIONS

Rebate Agreement -

Eligible PO Business Units

VRBT_BU

Chapter 13

Navigation Usage

Click the Activity Log link on the Rebate Agreement -

Rebate Agreement page.

Review the activity log for this rebate agreement. This page displays the user ID and the date of the individual who entered, modified, and approved the rebate agreement.

Click the Item Search link on the Rebate

Agreement - Rebate

Agreement page.

Click the Search button on the Rebate

Agreement - Rebate

Agreement page when you select a line type of item.

Search for items that you want to apply to the rebate agreement.

Click the Search button on the Rebate Agreement -

Rebate Agreement page when you select a line type of category.

Search for categories that you want to apply to the rebate agreement.

Click the Exception link on the Rebate Agreement -

Rebate Agreement page when you select a line type of category.

Define items within a category that do not apply to this rebate agreement.

Purchasing, Vendor

Rebates, Rebate Agreement,

Rebate Options

Define general and settlement rebate options that pertain to the rebate agreement.

Click the Eligible PO

Business Units link on the

Rebate Agreement - Rebate

Options page.

Define eligible purchase order business units for the rebate agreement. This page is available if the rebate agreement is not specified as a corporate agreement.

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Chapter 13

Page Name Definition Name

Rebate Agreement - Rebate

Agreement Value Added

Tax

VRBT_HDR_VAT

Rebate Agreement -

Receivables ChartFields

VRBT_AR_DIST

Rebate Agreement - Rebate

Rules

VRBT_RULES

Rebate Agreement - Rebate

Types Explained

VRBT_RULE_INFO

Rebate Agreement -

Distributions for Rebate

Rule

VRBT_RULE_DIST

Defining Vendor Rebate Agreements

Navigation Usage

Click the Header VAT link on the Rebate Agreement -

Rebate Options page.

Update value added tax details for the rebate agreement.

Note. The Header VAT link is available only if the

PeopleSoft General Ledger business unit that is associated with the

PeopleSoft Payables business unit is a VAT entity.

Click the Receivables

ChartFields link on the

Rebate Agreement - Rebate

Options page.

Review and override the

ChartFields that are associated with PeopleSoft

Receivables business unit that is associated with the rebate agreement. The system populates by default the ChartFields from the

AR Distribution Code that is defined for the

PeopleSoft Receivables business unit. The

PeopleSoft Receivables

ChartFields are required if the settlement method for the rebate agreement is anything but Adjustment

Voucher.

Purchasing, Vendor

Rebates, Rebate Agreement,

Rebate Rules

Define the different rebate rules that apply to this rebate agreement.

Click the Rebate Types

Explained link on the

Rebate Agreement - Rebate

Rules page.

Displays text explaining the five different types of rebates with examples, namely Standard or

Stepped, Retrospective,

Flat, Growth Bonus, and

Market Contribution.

Click the Rule ChartFields link on the Rebate

Agreement - Rebate Rules page.

Define the ChartField distributions for each rebate rule.

Defining Rebate Agreements

Access the Rebate Agreement - Rebate Agreement page (Purchasing, Vendor Rebates, Rebate Agreement).

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Rebate Agreement - Rebate Agreement page

Rebate Status

Copy From Existing

Rebate Agreement

This field appears by default from the User Preferences - Procurement: Rebate

Authorizations page. When you are defining a rebate agreement, the initial default value is either Open or Approved.

Select the overall rebate agreement status. Values are:

Approved

Canceled

Closed

Hold

Open

See Chapter 13, "Defining Vendor Rebate Agreements," Understanding Vendor

Rebate Agreement Statuses, page 313.

Click this link to access the Rebate Agreement - Copy Rebate Agreement page.

Use this page to copy an existing rebate agreement to the new rebate agreement.

Note. This link appears only in Add mode.

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Chapter 13 Defining Vendor Rebate Agreements

General Details

Rebate Manager

Settlement Manager

Master Contract ID

Begin Date

Expiration Date

Dispatch Method

Dispatch

Specify Vendor

Locations

Add Comments

Select the rebate manager for this rebate agreement. Rebate managers are users who are specified with the rebate manager role.

Select the settlement manager for this rebate agreement.

Select the contract to associate with this rebate agreement.

Select the start date for this rebate agreement. The current date appears by default for the begin date.

Note. You cannot change the begin date to be after the purchase order date.

Select the end date for this rebate agreement.

Note. You cannot change the expiration date to be before the purchase order

date.

Select the dispatch method for the rebate agreement. Values are:

Email

FAX

Phone

Print

Click this button to dispatch the vendor agreement. The rebate agreement must be approved before you can dispatch it. When you click the button, the system automatically performs the Rebate Dispatch & Email multiprocess job

(VRBTDISP).

Click to access the Rebate Agreement - Specify Vendor Locations page. Use this page to specify specific vendor locations where the rebate agreement ID can be applied when you are creating a purchase order.

For example, suppose you have a vendor ABC and they have three locations:

Location 1, Location 2, and Location 3. You have created a specific rebate agreement ID with this vendor that is applicable only if the purchase order is ordered from Location 2 and Location 3. In this situation, when ordering from

Location 1, they are not eligible for the rebate agreement.

Specifying vendor locations is optional. If you do not specify vendor locations, then the rebate agreement ID can be applied to all the vendor locations from the specified vendor.

Click to access the Rebate Comments page where you can view and add comments about the rebate.

See Chapter 28, "Creating Purchase Orders Online," Entering Purchase Order

Header Comments, page 708.

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Defining Vendor Rebate Agreements Chapter 13

Rebate Activities

Primary Contact Info

(primary contact information)

Activity Log

Click to access the Rebate Activity page where you can view and update activities associated with the rebate. You can enter activities and the due dates and mark when those activities have been completed.

Select to access the Vendor Primary Contact Info page where you can review the vendor's primary contacts address and other contact information, such as telephone number and pager number.

Click to access the Activity Log page where you can review the activity log for this rebate agreement. The page displays the user ID and the date of the individual who entered, modified, and approved the rebate agreement.

Amount Summary

Maximum Rebate

Amount

Enter a value if a maximum rebate amount is available for this rebate agreement.

This value is expressed in the rebate agreement currency.

Total PO Amount (total

purchase order amount)

Displays the total purchase order amount in the rebate agreement currency. This is the sum of all merchandise amounts per purchase order line that are associated with this rebate agreement.

Total Accrued Rebate

Total Claim Amount

Rebate Received

Total Pending Rebate

Amount

Displays the total accrued amount for this rebate agreement.

Displays the total claim amount for this rebate agreement.

Displays the total claim amount that was collected from the supplier for this rebate agreement.

Displays the difference between the total accrued rebate and the total claim amount for the rebate agreement (the accrued rebate portion that has not been claimed yet).

Line Items and Categories

Add Items From

Line

Click the Item Search link to access the Rebate Agreement - Item Search page.

Use this page to add multiple items at once to the rebate agreement.

Displays the line number of the rebate agreement. The rebate agreement line indicates which item or item categories are applied to the vendor rebate agreement.

Note. This applies only if the vendor rebate agreement is not a corporate

agreement.

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Chapter 13

Line Type

(search)

Exception

Defining Vendor Rebate Agreements

Select the type of line that you are adding to the rebate agreement. Values are:

Category

When you select category as the line type, the Category field becomes available for entry and the Item ID field is not available for entry.

Item

When you select item as the line type, the Item ID field becomes available for entry. The category that is associated with the item that you enter appears in the Category field.

Click to search for either item IDs or categories.

If you select a line type of Category, click this button to access the Category

Search page. Use this page to search for categories.

If you select a line type of Item, click this button to access the Rebate Agreement

- Item Search page. Use this page to search for items.

Click this link to access the Rebate Agreement - Item Category Exceptions page.

Use this page to identify the items in the category that you want to exclude from the rebate agreement.

The Exception link appears only when you select a line type of Category.

Defining Rebate Options

Access the Rebate Agreement - Rebate Options page (Purchasing, Vendor Rebates, Rebate Agreement,

Rebate Options).

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Rebate Agreement - Rebate Options page

General Rebate Options

Corporate Agreement

Select this check box if this rebate agreement can be used by all business units.

This check box appears selected by default.

If the check box is clear, then you need to specify at least one eligible PO business unit.

Open Item Rebate

Agreement

Select this check box if the rebate agreement is open to all items. If you select this check box, you are not able to enter items or categories for the rebate agreement on the Rebate Agreement - Rebate Agreement page.

Include Automatically

PO Adhoc Items(include

automatically purchase order ad hoc items)

Select this check box if you want to include description-only items for the rebate agreement.

If the check box is clear, the rebate agreement won't be automatically associated to the purchase order lines with description-only items.

Rebate Reduction From

RTV(rebate reduction

from return to vendor)

Select this check box if you want to generate accruals upon return to vendor shipments for the purchase orders that are associated with this rebate agreement.

Accruals on RTV transactions will have a negative rebate amount.

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Chapter 13 Defining Vendor Rebate Agreements

Include Only Vouchered

Rebate Accruals in

Claims

Select this check box if you want the Generate Vendor Rebate Claims process to include only the rebate accruals with a transaction status of Vouchered.

Direct Shipment Option Select the direct shipment option. This option is used to determine the rebate

agreement that is assigned to a purchase order when the purchase order is created. Values are:

Direct Shipments Only: Rebate agreement is applied exclusively to the direct shipment transactions.

Exclude Direct Shipments: Rebate agreement is applied exclusively to regular purchase order transactions.

Include Direct Shipments: Rebate agreements are applied to both regular purchase order transactions and direct shipment transactions.

Must Use Rebate Rate

Date

Select this check box if you want the system to use the rate date of the rebate agreement for the currency conversion. After you select this check box, select the rate date in the Rate Date field.

Notify Rebate Manager

Select this check box if you want to notify the Rebate Manager by email, worklist, or both when a new claim is generated.

Notify Settlement

Manager

Select this check box if you want to notify the Settlement Manager by email, worklist, or both when a claim is settled through the Claims Management

Workbench.

Settlement Options

AP Business Unit

(PeopleSoft Payables business unit)

GL Business Unit

(PeopleSoft General

Ledger business unit)

Vendor Location

Select the PeopleSoft Payables business unit to use for the rebate agreements settlement.

AR Business Unit

(PeopleSoft Receivables business unit)

Select the PeopleSoft Receivables business unit if the settlement method for the rebate agreement is anything but Adjustment Voucher.

The PeopleSoft General Ledger business unit that is associated with the

PeopleSoft Payables business unit appears.

Select the vendor location to apply to adjustment vouchers that are created for a claim settlement. Specifying a vendor location is optional.

This vendor location will be passed to PeopleSoft Payables through the voucher staging process.

Specifying a vendor location can be useful if you want to handle a specific vendor location for rebate differently than the normal ordering vendor location.

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Defining Vendor Rebate Agreements Chapter 13

Settlement Frequency

Select the frequency of the rebate agreement settlement. The schedule IDs that you define on the Maintain Purchase Order - Schedules page are used for the settlement frequency. For example, settlement frequency can be yearly, quarterly, monthly, and so on.

See Chapter 28, "Creating Purchase Orders Online," Creating Purchase Order

Schedules, page 739.

Next Claims Generation

Date

Displays the next claim generation date. The system calculates the date based on the rebate agreement begin date and settlement frequency that is selected. You can override this date.

For example, assume that a rebate agreement is being entered on February 1,

2004 (current system date) with a begin date of January 1, 2004 and an expiration date of December 31, 2004 with a settlement method of quarterly. Assume that the schedule is defined as quarterly with a day of the month equal to one for the schedule ID. In this case, the next claims generation date calculated would be

April 1, 2004.

Settlement Method

Select the settlement method for the rebate agreement. Values are Adjustment

Voucher,Check,Credit Memo,Direct Debit,Draft, and Electronic Funds Transfer.

AR Payment Terms

(PeopleSoft Receivables payment terms) or AP

Payment Terms

(PeopleSoft Payables

Payment Terms)

Depending on the settlement method that you select, you will select either AR

Payment Terms or AP Payment Terms. The system uses this field for the payment due days calculation.

Settlement Tolerances

Amount Tolerance Over

and Amount Tolerance

Under

These fields appear by default from the values that are defined on the Set

Controls - Contracts page.

See PeopleSoft Enterprise Source-to-Settle Common Information 9.1 PeopleBook

, "Defining Procurement Options," Defining Contract and Vendor Rebate Control

Parameters.

Percentage Tolerance

Over and Percentage

Tolerance Under

These fields appear by default from the values that are defined on the Set

Controls - Contracts page.

Updating Rebate Agreement VAT Details

Access the Rebate Agreement - Rebate Agreement Value Added Tax page (click the Header VAT link on the

Rebate Agreement - Rebate Options page).

Expanding and Collapsing Sections

To manage the VAT data more efficiently, you can expand and collapse sections on this VAT page making management of the information on this page easier.

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Chapter 13 Defining Vendor Rebate Agreements

Expand All Sections

Collapse All Sections

Click this button to scroll to and access every section on the page. You can also expand one or more sections by clicking the arrow next to the section's name.

Click this button to collapse all sections displaying only the header information.

If you expand one or more sections, you can click the arrow next to the name of the section to collapse the section.

Physical Nature

Physical Nature

Indicates whether an object is a good or a service. Many countries are required to report the sale and purchase of goods separately from services. The default comes from the vendor location in the Settlement Options if specified, or the default vendor location or Goods value if not specified on the vendor location.

VAT Locations

Ship From Country

Ship From State

Ship To Country

Ship To State

Displays the vendor's ship from location country. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

If the ship to country is defined as tracking VAT by state or province, this field displays the vendor's ship from location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

Displays the ship to location country. In the case of transactions involving goods or freight service transactions, this determines the VAT treatment.

If the ship to country is defined as tracking VAT by state or province, this field displays the ship to location state. In the case of transactions involving goods or freight service transactions, this is used to determine the VAT treatment.

VAT Defaults

Reporting Country

Defaulting State

Displays the country for which this VAT will be reported. This is the VAT entity

VAT registration country and determines many of the VAT defaults.

If the reporting country requires that VAT be tracked by state or province, this field displays the state within the reporting country that is used to retrieve values from the VAT Defaults table.

Displays the registration country and ID of the vendor.

Vendor Registration

Country and Vendor

Registration ID

Exception Type

Displays the exception that is granted to the VAT entity. Values are: None,

Exonerated, or Suspended. This value is specified on the VAT entity registration.

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Defining Vendor Rebate Agreements Chapter 13

Certificate ID

Calculate at Gross or

Net

Indicates how VAT is calculated. Values are:

Gross: The system calculates VAT before it applies any early payment discounts.

Net: The system calculates VAT after it deducts early payment discounts. If two percentage discounts exist, the system uses the larger of the two when it calculates VAT. The system does not use discount amounts, only discount percentages.

The default value comes from the VAT entity driver.

Recalculate at Payment

Select this check box to enable the recalculation of VAT at payment time to allow for any early payment discounts, if you are calculating VAT at gross. This causes the system to adjust the VAT amount at the time of payment if the discount has been taken. This is set on the VAT entity driver in the VAT defaults table.

Declaration Point

If applicable, displays the ID of the VAT exception certificate that may have been issued to the VAT entity.

Rounding Rule

Use Type

Appears for a good or service when you want VAT transaction information to be recognized for reporting purposes. Values are:

Invoice: VAT is recognized at time of invoice.

Payment: VAT is recognized at time of payment.

Delivery: VAT is recognized on delivery.

This value may be set at several levels in the VAT hierarchy: VAT entity registration, business unit options, vendor, or vendor location.

Displays the VAT rounding rule. The value comes from the VAT country, VAT entity, vendor, or vendor location drivers. Values are:

Nat Rnd (natural round): Amounts are rounded normally (up or down) to the precision that is specified for the currency code. For example, for a currency that is defined with two decimal places, 157.4659 would round up to 157.47, but

157.4649 would round down to 157.46.

Down (round down): Amounts are rounded down. For example, for a currency that is defined with two decimal places, 157.4699 would round down to 157.46.

Up (round up): Amounts are rounded up with a rounding precision to one additional decimal place. For example, for a currency that is defined with 2 decimal places, 157.4659 would round up to 157.47, but 157.4609 would round down to 157.46.

Determines the split between recoverable (taxable) and nonrecoverable

(nontaxable) VAT.

For the Canadian public sector, the use type also determines the rebate of the nonrecoverable VAT. VAT rebates are calculated based on statutory rebate rates that are established for each public service body.

The value comes from the VAT defaulting hierarchy, from the vendor location, vendor, or purchasing options.

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Chapter 13 Defining Vendor Rebate Agreements

Include Freight

Include Miscellaneous

If this option is selected, the system includes any freight amounts in the VAT basis by calculating VAT on the merchandise amount plus any freight amount.

This option is available only for exclusive VAT calculation. The value comes from the VAT entity registration driver.

If this option is selected, the system includes any miscellaneous charge amounts in the VAT basis by calculating VAT on the merchandise amount, plus any miscellaneous charge amount. This option is available only for exclusive VAT calculation. The value comes from the VAT entity registration driver.

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Defining Vendor Rebate Agreements

Treatment

Chapter 13

Displays the VAT treatment. VAT treatment is determined by a complex set of algorithms. Values are:

Domestic Goods Purchase: If the ship from and ship to countries are the same, and the vendor is registered for VAT, the transaction is treated as domestic.

Domestic Service Purchase: If the buyer and seller are both located in the country where the VAT is liable, the transaction is treated as domestic.

EU Goods Purchase (European Union goods purchase): If the ship from and ship to countries are different, the system determines whether both countries are located within the European Union. If so, the system looks at the VAT registration for each trading partner to determine whether the transaction should be treated as an intra-EU purchase, domestic, or outside the scope of

VAT.

EU Service Purchase (European Union service purchase): If each trading partner is located and registered in a different EU country, and the VAT on a service is liable in the buyer's country, the transaction is treated as a selfassessed EU Services Purchase.

Self-Assess Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the

European Union, and the vendor is not registered in the ship to country, the transaction would be treated as an import. If the flag on the entry in the VAT

Country table for the VAT reporting country indicates that VAT on imports should be self-assessed, the transaction will be treated as a self-assess goods import, and both input and output VAT will be recorded.

Self-Assess Service Import: If each trading partner is located and registered in a different country, and the VAT on a service is liable in the buyer's country, the transaction is treated as a self-assessed services import.

Zero-Rated Goods Import: If the ship from country is different from the ship to country and either or both of the countries are located outside of the

European Union, and the vendor is not registered in the ship to country, the transaction would be treated as an import. If the flag on the entry in the VAT

Country table for the VAT reporting country indicates that only input VAT should be recorded on imports, the transaction will be treated as a zero-rated goods import.

Outside of Scope: If the supplier is not registered for VAT, or if the VAT is liable in a country other than the VAT reporting country, the transaction is treated as outside the scope of VAT.

No VAT Processing: For transactions for which the physical nature is goods, if the ship to country has not been defined as a VAT country and the VAT reporting country on the transaction is blank, no VAT information will be recorded.

Within PeopleSoft, detail VAT treatment values on the transaction lines are used for applying the precise defaults that are applicable to the transaction lines. The treatment is determined based the rules that are applicable to the transaction.

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Chapter 13 Defining Vendor Rebate Agreements

Applicability

VAT Code

Record Output VAT

Transaction Type

Displays the VAT status. Applicability is determined by an algorithm that makes use of the Applicable field in the VAT defaults table, the value of which may be set at almost every level in the PeopleSoft Purchasing VAT defaulting hierarchy.

Values are:

Exempt (not subject to VAT).

Exonerated.

N/A (not applicable): This is valid only when VAT treatment is No VAT

Processing.

Outside (outside scope of VAT).

Suspend.

Taxable.

Displays the VAT code that defines the rate at which VAT is calculated for this schedule. The default value comes from the VAT country, purchase order options, vendor, or vendor location levels in the PeopleSoft Purchasing VAT defaulting hierarchy.

Select this check box to enter vouchers in which VAT is not included on the invoice but is payable to the VAT authority rather than the vendor. In this case, you account for both input and output VAT for the purchase. This is the case for an Intra-EU Acquisition or when you must account for output VAT on a service that is supplied by a foreign supplier. This is also referred to as self-assessing for

VAT. The value comes from an algorithm that uses the treatment and applicability to retrieve the applicable value from the PeopleSoft-delivered VAT system setup data.

Displays the code that categorizes and classifies this transaction for VAT reporting and accounting. The default value comes from the VAT entity registration, purchase order options, vendor, or vendor location levels in the

PeopleSoft Purchasing VAT defaulting hierarchy.

Adjust/Reset VAT Defaults

Any changes that you make to fields on this page may affect VAT defaults on this page. For accuracy and consistency, use the following fields to adjust affected VAT defaults or to reset all VAT defaults. Adjusting or resetting VAT defaults affects only fields that are within the VAT Defaults group box.

Adjust Affected VAT

Defaults

Click this button to have the system adjust the VAT defaults that are affected by the changes. All changes that you have made to VAT defaults on this page that affect other VAT defaults on this page will be retained.

Click the i button to list the fields that are to be adjusted.

Note. You should always click the Adjust Affected VAT Defaults button after

changing any defaults on the VAT page.

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Defining Vendor Rebate Agreements Chapter 13

Levels

Enables you to specify the levels to reset when you click the Reset All VAT

Defaults button. Values are:

All lower levels: Resets all VAT defaults at lower levels for this page.

This and all lower levels: Resets all VAT defaults on this page and at any lower levels of this page.

This level only: Resets all VAT defaults on this page.

Reset All VAT Defaults

Click this button to have the system reset the VAT defaults based on the Levels value that you selected. Any changes that you previously made to VAT defaults will be lost.

Note. Reset completely redetermines the VAT defaults. This does not necessarily

mean they are reset to their original values. For example, the user may not have changed any VAT default values, but if a VAT driver field changes, you can click Reset All VAT Defaults to redetermine all defaults based on the new driver value.

Note. The system captures all the VAT information for VAT processing to take advantage of the PeopleSoft

Global Options even though some of the information may not be relevant to vendor rebates.

See Also

Chapter 3, "Defining PeopleSoft Purchasing Business Units and Processing Options," Preparing PeopleSoft

Purchasing VAT Environments, page 57

PeopleSoft Enterprise Global Options and Reports 9.1 PeopleBook, "Working with VAT"

Defining Rebate Rules

Access the Rebate Agreement - Rebate Rules page (Purchasing, Vendor Rebates, Rebate Agreement, Rebate

Rules).

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Chapter 13 Defining Vendor Rebate Agreements

Rebate Agreement - Rebate Rules page

Rules Summary

The fields in this group box display all the rebate rules that currently exist for this rebate agreement. This is a quick way to view a summary of the rebate rules that are associated with the rebate agreement.

Stepped or Standard Rule Type

To define a stepped or standard rule type:

1. Select Stepped/Standard in the Rebate Rule Type field.

2. (Optional) Enter a description for the rule using the Description field.

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Defining Vendor Rebate Agreements Chapter 13

3. Configure the rule settings.

The field selections that you make in the Configure Rule section of the page determine how the fields in the Rebate Tiers group box will appear.

Select a tier basis for the rule using the Tier Basis field. Values are Amount and Quantity.Quantity appears by default.

If you select amount, amount fields appear in the Rebate Tiers group box.

If you select quantity, quantity fields appear in the Rebate Tiers group box. Also, you will need to select a unit of measure that is associated with the quantity in the UOM field.

Select a tiers in terms of setting for the rule using the Tiers in Terms Of field. Values are From

(Minimum) and To (Maximum).From (Minimum) appears by default.

If you select From (Minimum), a From column appears in the Rebate Tiers group box.

If you select To (Maximum), a To column appears in the Rebate Tiers group box.

Select how the rebate is to be calculated for this rebate rule using the Rebate Calculated As field.

Values are Amount and Percentage.

For stepped/standard rules, the rebate is always calculated as a percentage.Amountis not a valid selection for this rebate rule type.

4. Click the Edit Rebate Tier Table button.

When you click this button, the fields in the Rebate Tiers group box are configured to match the rule settings that you choose previously. Also, the configure rule fields are no longer available for entry.

5. Enter the terms of the rebate using the fields in the Rebate Tiers group box.

Enter the From or To quantities or amounts. If you are working with quantities, the UOM field appears. If you are working with amounts, the Currency field appears.

Enter the rebate percentage for each rebate rule line using the Rebate % field.

6. (Optional) Edit the rule setting fields.

If you have found that you need to change the fields that appear in the Rebate Tiers group box. Click the

Edit Rule Settings button.

Select the new field values for the rule settings.

Click the Edit Rebate Tier Table button.

Enter the new values for the rebate rule.

7. Enter rule distributions using the Rebate Agreement - Distributions for Rebate Rule page.

Click the Rule ChartFields link.

The rule ChartFields will appear by default from the Accounting Template, but you can override it. The

Generate Vendor Rebate Claims process will retrieve and create claim distribution lines with the

ChartFields from here. Then the claim distribution lines will be passed to PeopleSoft Payables or

PeopleSoft Receivables when the claim is settled.

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Chapter 13 Defining Vendor Rebate Agreements

8. Save the rebate rule by clicking the Save button.

Flat Amount Rule Type

To define a flat amount rule type:

1. Select Flat Amount in the Rebate Rule Type field.

2. (Optional) Enter a description for the rule using the Description field.

3. Configure the rule settings.

The field selections that you make in the Configure Rule section of the page determine how the fields in the Rebate Tiers group box will appear.

Select a tier basis for the rule using the Tier Basis field. Values are: Amount and Quantity.Quantity appears by default.

If you select amount, amount fields appear in the Rebate Tiers group box.

If you select quantity, quantity fields appear in the Rebate Tiers group box. Also, you will need to select a unit of measure associated with the quantity in the UOM field.

Select a tiers in terms of setting for the rule using the Tiers in Terms Of field. Values are From

(Minimum) and To (Maximum).From (Minimum) appears by default.

If you select From (Minimum), a From column appears in the Rebate Tiers group box.

If you select To (Maximum), a To column appears in the Rebate Tiers group box.

4. Click the Edit Rebate Tier Table button.

When you click this button, the fields in the Rebate Tiers group box are configured to match the rule settings that you chose previously. Also, the configure rule fields are no longer available for entry.

5. Enter the terms of the rebate using the fields in the Rebate Tiers group box.

Enter the From or To quantities or amounts. If you are working with quantities, the UOM field appears. If you are working with amounts, the Currency field appears.

Click the Prorate check box to prorate the flat rebate amount.

For example, you define a rule for the purchase amount from 0 to 10,000 USD with the rebate being

100 USD. If the purchase amount is 6,000 USD and the prorate check box on the tier is clear, then the rebate amount is 100 USD. If the prorate check box is selected, then the rebate amount is 60 USD.

Enter the flat rebate amount for each rebate rule line using the Rebate Amount field.

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Defining Vendor Rebate Agreements Chapter 13

6. (Optional) Edit the rule setting fields.

If you have found that you need to change the fields that appear in the Rebate Tiers group box. Click the

Edit Rule Settings button.

Select the new field values for the rule settings.

Click the Edit Rebate Tier Table button.

Enter the new values for the rebate rule.

7. Enter rule distributions using the Rebate Agreement - Distributions for Rebate Rule page.

Click the Rule ChartFields link.

The rule ChartFields will appear by default from the Accounting Template, but you can override it. The

Generate Vendor Rebate Claims process will retrieve and create claim distribution lines with the

ChartFields from here. Then the claim distribution lines will be passed to PeopleSoft Payables or

PeopleSoft Receivables when the claim is settled.

8. Save the rebate rule by clicking the Save button.

Growth Bonus Rule Type

To define a growth bonus rule type:

1. Select Growth Bonus in the Rebate Rule Typefield.

2. (Optional) Enter a description for the rule using the Description field.

3. Configure the rule settings.

The field selections that you make in the Configure Rule section of the page determine how the fields in the Rebate Tiers group box will appear.

Select a tier basis for the rule using the Tier Basis field. Values are Amount and Quantity.Quantity appears by default.

If you select amount, amount fields appear in the Rebate Tiers group box.

If you select quantity, quantity fields appear in the Rebate Tiers group box. Also, you will need to select a unit of measure that is associated with the quantity in the UOM field.

Select a tiers in terms of setting for the rule using the Tiers in Terms Of field. Values are From

(Minimum) and To (Maximum).From (Minimum) appears by default.

If you select From (Minimum), a From column appears in the Rebate Tiers group box.

If you select To (Maximum), a To column appears in the Rebate Tiers group box.

Select how the rebate is to be calculated for this rebate rule using the Rebate Calculated As field.

Values are Amount and Percentage.

4. Click the Edit Rebate Tier Table button.

When you click this button, the fields in the Rebate Tiers group box are configured to match the rule settings that you chose previously. Also, the configure rule fields are no longer available for entry.

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Chapter 13 Defining Vendor Rebate Agreements

5. Enter the items or categories to associate with the growth bonus rule type using the Eligible Items and

Categories for Growth Bonus group box.

Select a line type using the Line Type field. Values are Item and Category.

If you select Item as a line type, then select an item ID and enter a rebate basis amount using the Basis

Amount field.

If you select Category as a line type, then select a category and enter a rebate basis amount using the

Basis Amount field.

If you select item or category as the line type and quantity as the tier basis, then enter an item ID or a category and enter a rebate basis amount as well as a rebate basis quantity.

6. Enter the terms of the rebate using the fields in the Rebate Tiers group box.

Enter the From or To quantities or amounts. If you are working with quantities, the UOM field appears. If you are working with amounts, the Currency field appears.

Enter the rebate percentage for each rebate rule line using the Rebate % field.

7. (Optional) Edit the rule setting fields.

If you have found that you need to change the fields that appear in the Rebate Tiers group box, click the

Edit Rule Settings button.

Select the new field values for the rule settings.

Click the Edit Rebate Tier Table button.

Enter the new values for the rebate rule.

8. Enter rule distributions using the Rebate Agreement - Distributions for Rebate Rule page.

Click the Rule ChartFields link.

The rule ChartFields will appear by default from the Accounting Template, but you can override it. The

Generate Vendor Rebate Claims process will retrieve and create claim distribution lines with the

ChartFields from here. Then the claim distribution lines will be passed to PeopleSoft Payables or

PeopleSoft Receivables when the claim is settled.

9. Save the rebate rule by clicking the Save button.

Marketing Contribution Rule Type

To define a marketing contribution rule type:

1. Select Marketing Contribution in the Rebate Rule Type field.

2. (Optional) Enter a description for the rule using the Description field.

3. Enter the terms of the rebate using the Previous Period Basis Amount,Rebate Amount, or Rebate %

(rebate percentage) fields.

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Defining Vendor Rebate Agreements Chapter 13

4. Enter rule distributions using the Rebate Agreement - Distributions for Rebate Rule page.

Click the Rule ChartFields link.

The rule ChartFields will appear by default from the Accounting Template, but you can override it. The

Generate Vendor Rebate Claims process will retrieve and create claim distribution lines with the

ChartFields from here. Then the claim distribution lines will be passed to PeopleSoft Payables or

PeopleSoft Receivables when the claim is settled.

5. Save the rebate rule by clicking the Save button.

Retrospective Rule Type

To define a retrospective rule type, follow the same procedure as you would to define a stepped or standard rule type. The only difference is that you select a Rebate Rule Type of Retrospective.

Dispatching Vendor Rebate Agreements

This section provides an overview of vendor rebate agreement dispatch and discusses how to dispatch vendor rebate agreements.

Understanding Vendor Rebate Agreement Dispatch

You can dispatch a vendor rebate agreement in two ways. You can dispatch a rebate agreement online using the Rebate Agreement - Rebate Agreement page or you can dispatch rebate agreements using the batch

Rebate Dispatch & Email multiprocess job.

Use the Vendor Rebate Agreement Dispatch page to schedule a background batch job that dispatches a single rebate agreement or multiple rebate agreements that meet the selection criteria. After rebate agreements have been successfully dispatched, their statuses are updated to Dispatched.

See Also

Chapter 13, "Defining Vendor Rebate Agreements," Defining Vendor Rebate Agreements, page 320

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Chapter 13 Defining Vendor Rebate Agreements

Page Used to Dispatch Vendor Rebate Agreements

Page Name

Vendor Rebate Agreement

Dispatch

Definition Name

RUN_DISP_POVRBT100

Navigation

Purchasing, Vendor

Rebates, Rebate Dispatch,

Vendor Rebate Agreement

Dispatch

Usage

Initiate the Vendor Rebate

Dispatch SQR Report process (POVR100), Rebate

Dispatch Email Application

Engine process

(PO_VR_EMAIL), or

Rebate Dispatch & Email multiprocess job

(VRBTDISP).

Dispatching Vendor Rebate Agreements

Access the Vendor Rebate Agreement Dispatch page (Purchasing, Vendor Rebates, Rebate Dispatch, Vendor

Rebate Agreement Dispatch).

Vendor Rebate Agreement Dispatch page

Process Request Parameters

SetID

Rebate ID

Select the vendor rebate agreement setID.

Select a vendor rebate agreement.

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Defining Vendor Rebate Agreements

Fax Cover Page

Chapter 13

Select a fax cover page if some of the rebate agreements that you are dispatching are to be sent by fax. Define fax cover letters in the system on the Fax Cover

Letters page.

The Vendor Rebate Dispatch process writes to the fax control file the file name that is associated with the selected cover letter combined with the cover letter file extension that you defined on the Dispatch Configuration page.

Note. Support for fax cover pages is purely a function of the fax software that

you use. Please consult the fax software vendor to identify the limitations and capabilities of the fax cover page support in the software.

Dispatch Methods to Include

Select which dispatch methods to include in this run of the process. Selected values are used only as a part of the data selection criteria. To change the method by which the rebate agreement is to be dispatched, you must modify the dispatch method on the Rebate Agreement - Rebate Agreement page.

Miscellaneous Options

Test Dispatch

Print Copy

Print Duplicate

Select to perform a test run of the dispatch. When you select this option, the process runs, but the rebate agreements that are processed do not appear in

Dispatched status, and the rebate agreements are printed with the word

Unauthorized at the bottom. This enables you to test the email or fax setup without updating the system.

Select to produce a printed copy of each processed rebate agreement. If any of the processed rebate agreements are by phone, fax, or email, the system prints a hard copy for review.

Select to print the word Duplicate on each rebate agreement.

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Chapter 14

Generating Rebate Accruals

This chapter provides an overview of the Rebate Accrual process and discusses how to generate rebate accruals.

Understanding the Rebate Accrual Process

The Rebate Accrual Application Engine process (PO_VRBTACCR) calculates earned rebates for transactions that are related to purchase orders, such as receipts, vouchers, and return to vendors (RTVs).

The Rebate Accrual process identifies all purchase order lines that have vendor rebate agreements defined.

Then the system finds all associated receipts, vouchers, and RTVs to calculate the rebate and generate accrual records for those source transactions based on the rebate agreement terms and rules. During the processing of the different transactions, the system converts amounts and quantities to the currency and rule unit of measure on the vendor rebate agreement. The sum of these amounts and quantities becomes the basis for calculating the vendor rebate. The basis is referred to as the rebateable amount and rebateable quantity.

The rebate accrual records provide visibility to the rebate manager on the estimated earned rebates for analysis purposes, but also serve as the basis for the