Getting Started With PeopleSoft Purchasing

This chapter provides an overview of PeopleSoft Purchasing business processes and discusses:

Click to jump to parent topicPeopleSoft Purchasing Business Processes

The PeopleSoft Purchasing business processes include:

We cover these business processes in the business process chapters in this PeopleBook.

Click to jump to parent topicPeopleSoft Purchasing Integrations

PeopleSoft Purchasing integrates with the following PeopleSoft applications:

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.

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.

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.

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.

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.

Click to jump to parent topicPeopleSoft 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:

Component

Component Interface

Reference

ITM_MFG_UPN

ITM_MFG_UPN_CI

See Using Universal Item Identifiers.

ITM_SHIPTO_VNDR

ITM_SHIPTO_VNDR_CI

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

LOCATION_TBL

LOCATION_TBL_CI

See Defining Ship To Locations.

PURCH_ITEM_ATTR

PURCH_ITEM_ATTR_CI

See Defining Purchasing Item Attributes.

REQUESTOR_TBL

REQUESTOR_TBL_CI

See 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

Enterprise PeopleTools PeopleBook: PeopleSoft Setup Manager

Enterprise PeopleTools PeopleBook: PeopleSoft Component Interfaces