4 Setting Up the Commodity Structure

This chapter contains the following topics:

Section 4.1, "Understanding the Commodity Structure"
Section 4.2, "Setting Up the Commodity Structure"
Section 4.3, "Setting Up the UNSPSC Code Descriptions"

4.1 Understanding the Commodity Structure

The commodity structure enables you to categorize items, services, and supplier branch information in a hierarchical tree structure. After you set up the commodity structure, you create relationships for commodities. The system uses commodity relationships to provide default information for requisitions. Commodity relationship information is eventually passed to Enterprise Performance Management, where you can perform spend analysis.

When setting up the commodity structure, you must observe these guidelines:

Each commodity may have only one parent commodity.
You may not create duplicate commodities.
You may have only three commodity levels in the commodity hierarchy.
Each commodity may contain a maximum of 15 alphanumeric characters.
The description associated with the commodity may contain a maximum of 30 alphanumeric characters.
The first level of the commodity structure is level 0.

The Requisition Self Service system provides a default commodity, Unknown. The system uses this commodity if you do not set up a commodity structure or if the system cannot find a default commodity for a requisition. You can attach a buyer to the Unknown commodity so that the buyer is alerted when users enter requisitions for which they do not know the commodity. You cannot set up line types, G/L class codes, and item relationships for the Unknown commodity.

Note:

Do not delete the Unknown commodity.

After you have created the initial commodity structure, you can add new items to the structure as needed. If you want to apply the commodities to purchase order records created before you set up the commodity structure, run the Populate F4311 Commodity/UNSPSC Program (R43910). This program assigns commodities and United Nations Standard Products and Services Codes (UNSPSC) to existing purchase order lines, based on data selection.

See Section 4.2.3, "Understanding the Populate F4311 Commodity/UNSPSC Program."

Note:

If you do not want to set up the commodity structure, you can still perform spend analysis on account-driven requisition lines by setting up relationships between UNSPSC codes and general ledger account numbers. Use the UNSPSC to Account Relationship program (P40243) to set up these relationships, and then use the Enterprise Performance Management systems to create reports that include UNSPSC code information. This program does not create UNSPSC relationships for item-driven requisition lines.

4.2 Setting Up the Commodity Structure

This section provides overviews of the Commodity Structure program, commodity relationships, and the Populate F4311 Commodity/UNSPSC program, and discusses how to:

Add a commodity.
Enter an item number.
Enter a UNSPSC code.
Enter a supplier relationship for the commodity.
Enter a supplier's commodity code.
Enter a G/L account number.
Set up a UNSPSC code for an account number.
Run the Populate F4311 Commodity/UNSPSC program (R43910).

4.2.1 Understanding the Commodity Structure Program

Use the Commodity Structure program (P40500) to create the commodity structure. When you add a commodity, you enter the commodity, a description, whether it is a product, service, or both, and the line type. You can also enter a buyer number and a G/L class code. You must enter this basic commodity data and save it before entering any relationship information.

After you add each commodity, you can cut and paste the commodities into the appropriate level of the hierarchy. You can create up to three levels in the structure.

You can also move nodes within the structure; however, you cannot move a node if moving the node would create more than three levels in the structure. When you move a node, the system moves any children that are associated with the node.

Note:

The Commodity Structure program is enabled with record locking. Record locking prevents a user from making any changes to the commodity structure when another user is updating the structure, ensuring data integrity. If your business practices require that multiple users have access to the commodity structure at one time, you can disable the record locking feature for this program by removing the P40500 program from user-defined code table 00/RR. However, we recommend that you leave record locking enabled.

See JD Edwards EnterpriseOne Tools APIs and Business Functions Guide.

4.2.2 Understanding Commodity Relationships

You can set up relationships for each commodity. Relationships provide default information for the system to use when you enter a commodity on the requisition and throughout the requisition and purchase order process.

This graphic illustrates commodity relationships:

Figure 4-1 Commodity relationships

Description of "Figure 4-1 Commodity relationships"

4.2.2.1 Item Number

Enter an item number for a commodity when you want to track commodity by item number. If you enter an item number for a commodity, you do not need to enter information such as G/L class code, because the system uses the information in the F4102 table. If you do enter any information for the commodity, the system overrides the information with the values specified in the F4102 table when you enter the requisition. The system stores item number relationship information in the F40540 table.

You can also enter the commodity directly into the Item Master program (P4101).

4.2.2.2 UNSPSC Code

If you want to track items by UNSPSC code separately or in addition to a commodity, you enter the UNSPSC code at the item master level. When you enter a requisition for a stock item, the system uses the UNSPSC code and the commodity associated with the item in the F4102 table.

However, you might want to enter a UNSPSC code for a commodity that does not have an item, such as a services commodity. To accomplish this, use the Commodity Structure program to associate the commodity with the UNSPSC code. When a user enters a requisition, the system retrieves the UNSPSC code from the associated commodity. Use the UNSPSC and Commodity program (P40510) to establish a one-to-one relationship between commodity codes and UNSPSC codes. The system uses the association when you enter a commodity and throughout the requisition and purchase order process. When you enter a requisition, the system retrieves the UNSPSC code from the associated commodity. The system stores the associations in the UNSPSC and Commodity Structure table (F40510). The system stores UNSPSC code relationship information in the F40510 table.

Note:

You can download a complete list of the UNSPSC codes from the UNSPSC website (www.UNSPSC.com). When you download the codes, the system stores them in the F40241 table. The visual assist for the UNSPSC field is attached to this table.

4.2.2.3 Suppliers

You usually attach supplier numbers to commodities for items that you do not normally stock, so that a user has a list of preferred suppliers for that particular item. When you create this relationship, the supplier name appears in the commodity structure under the designated commodity. If you implement the Direct Connect feature for one or more suppliers, the user can connect directly to the suppliers' website to shop for items. The system stores supplier relationship information in the F40520 table.

Note:

When you enter a supplier for the commodity, you must also enter a branch/plant for that supplier. If you do not enter a branch/plant, the system assigns the value of ALL. You usually assign a branch/plant of ALL for national suppliers that are used by all regions of your organization. For services, such as electrical work, you usually enter the branch/plant that applies to each supplier, so that users can select a supplier that is located in their region.

4.2.2.4 Suppliers' Commodity Codes

Enter a supplier's commodity code to create a cross-reference between your commodity and that of the supplier. You generally enter suppliers' commodity codes only if you are using the Direct Connect feature. After you set up the relationship between your commodity and the supplier's commodity code, the supplier's website can pass the commodity code to the Shopping Cart application so that the system can cross-reference this code and then use the internal commodity as the default value for commodity on the requisition line. The system stores supplier commodity code cross-reference information in the F40530 table.

Note:

You must set up a supplier and branch/plant relationship before attaching a supplier's commodity code to a commodity.

4.2.2.5 G/L Account Number

Enter a G/L account number commodity relationship if users at your organization most often enter an account number instead of a commodity on the requisition line. When the user enters an account number, the system searches the F40551 table for a related commodity for that account number. When searching for a commodity relationship, the system uses this hierarchy:

The system first searches the F40551 table to locate a related commodity for the business unit, object account, and subsidiary that the user entered.
If unsuccessful, the system then searches for a relationship for the object account and subsidiary that the user entered.
If unsuccessful, the system then searches for a relationship for the object account that the user entered.

When the system locates a commodity, it populates the Commodity field on the Requisition Entry form.

The system stores general ledger account number relationship information in the F40551 table.

4.2.3 Understanding the Populate F4311 Commodity/UNSPSC Program

If you create the commodity structure after you have already entered requisitions and purchase orders into the system, run the Populate F4311 Commodity/UNSPSC program (R43910) to attach commodities and UNSPSC codes to existing transactions. Based on data selection that you specify, the system reviews existing records in the F4311 table and attempts to find a commodity and UNSPSC code to assign to the lines. For stock lines, the system uses the item number to find a commodity relationship using the F40540 table. If the system does not find a commodity, the system assigns the Unknown commodity. For account-based lines (services), the system uses the account number to search for a commodity relationship using the F40551 table. After the system finds a commodity for a line, it searches for a UNSPSC relationship for the commodity, by using the F40510 table.

Note:

This program overwrites any existing values in the Commodity and UNSPSC Code fields, including blank and Unknown. Therefore, you should be certain that the data selection that you enter does not include requisition lines for which you do not want the values updated.

If you decide that the commodity structure provides too much or too little detail on spend information, you can change the commodity structure and run the Populate F4311 Commodity/UNSPSC program to update existing transactions with the new commodities and UNSPSC codes.

4.2.4 Forms Used to Set Up the Commodity Structure

Form Name	Form ID	Navigation	Usage
Set up Commodity Structure	W40500B	Commodity Structure (2/G43E31), Commodity Structure	Add base commodity information. Move a commodity from one tree node to another.
Edit Item Relationship	W40500A	Select Edit on the Item tab of the Set up Commodity Structure form.	Enter an item number for the commodity.
Edit UNSPSC Code	W40500F	Select Edit on the UNSPSC tab of the Set up Commodity Structure form.	Enter a default UNSPSC code for the commodity.
Edit Supplier Relationship	W40500D	Select Edit on the Supplier tab of the Set up Commodity Structure form.	Enter a valid supplier number for the commodity.
Edit Supplier Commodity Code Relationship	W40500E	Select Edit on the Supplier Commodity Code tab of the Set up Commodity Structure form.	Enter a supplier's commodity code.
Edit G/L Account Relationship	W40500H	Select Edit on the G/L Account tab of the Set up Commodity Structure form.	Enter a general ledger account number for the commodity code.
Confirm Delete	W40500G	Select Cut Tree Node on the Set up Commodity Structure form.	Delete a node from the structure.
Set up UNSPSC Code And Commodity Code Relationship	W40510A	Commodity Structure 2/(G43E31), UNSPSC and Commodity	Set up a relationship for a UNSPSC code and a commodity.
G/L Account and Commodity Code	W40551A	Commodity Structure (2/G43E31), G/L Account and Commodity	Set up a relationship for a general ledger account and a commodity.
Search Branch Plant	W40521A	Supplier Direct Connect menu (3/G43E31), Setup Supplier Information Select a supplier on the Work With Supplier form and then select Commodity Structure from the Row menu.	Search for a branch/plant associated with the supplier. Click Set up Supplier Branch Plant. Click Set up Supplier Commodity Codes.
Set Up Supplier Commodity Codes	W40520A	Select Set Up Supplier Commodity Codes on the Search Branch Plant form.	Set up a cross-reference between a supplier's commodity codes and your commodity structure.
Work With Commodity Relationships	W40243A	UNSPSC Definition (G43A412), UNSPSC to Account Relationship	Review existing relationships.
Commodity Relationship Revisions	W40243B	Click Add on the Work With Commodity Relationships form.	Set up a UNSPSC relationship for an account number, if you do not want to set up the commodity structure.

4.2.5 Adding A Commodity

Access the Set up Commodity Structure form.

Figure 4-2 Set up Commodity Structure form (1 of 2)

Description of "Figure 4-2 Set up Commodity Structure form (1 of 2)"

Figure 4-3 Set up Commodity Structure form (2 of 2)

Description of "Figure 4-3 Set up Commodity Structure form (2 of 2)"

Commodity

Enter a commodity. The system uses the value that you specify when arranging the commodities in the structure in alphabetical order.

Commodity Description

Enter a description for the commodity. The system displays the value that you specify when displaying the commodity in the tree structure.

Commodity Category

Enter a value that specifies whether the commodity is a product, service, or both. This value determines on which tab the commodity appears in the commodity structure. Values are: Both, Product, and Service.

Note:

You should select Both for any commodities that have both product and service commodities subordinate to them. If you do not select Both, the system does not display any subordinate commodities that have a category that is different from that of the parent commodity.

Buyer Number

Enter the address book number of the buyer responsible for this commodity. The system uses this value for alerts on special requests and in the Requisition Expeditor program (P43E060). If you enter a stock item, the system uses the buyer number from the F4102 table as the default value.

Line Type

Enter a line type for the commodity. This code controls how the system processes lines on a transaction. When you enter a requisition, the system uses the following hierarchy when searching for a line type to use as the default:

Use the line type defined in the item location record for the item.
Use the line type defined in the item/branch record for the item.
Use the line type defined in the item master for the item.
Use the line type for the commodity.
Use the line type specified in the processing options for the Requisition Entry Business Function Application program (P43E0001) for services and products.
Use the line type specified in the data dictionary. The default value for LNTY is S and the default value for RLNTY is N.

If you enter a stock item, the system uses the line type from the Item Branch or the Item Master table as the default value.

G/L Class Code

Enter the code that the system uses in conjunction with the document type to obtain an account number from the appropriate automatic accounting instruction (AAI). The system uses the value that you specify only if you enter a non-stock item (an item that is not in the item master) or service. If you enter a stock item, the system uses the G/L class code from the item master as the default value.

When you enter requisitions, the system uses this hierarchy when determining which G/L class code to use:

If you enter an item number, the system uses the G/L class code from the item branch.
If the item branch does not have a G/L class code, the system uses the G/L class code on the item master.
If you have not entered an item number, but have entered a commodity, the system uses the G/L class code for the commodity.
If the G/L class code for the commodity is blank, the system uses the line type on the commodity and retrieves the G/L class code from the line type constants.
If the commodity on the requisition is Unknown, the system uses the line type specified in the processing options for the Requisition Entry Business Function Application program, as the line type for the Unknown commodity is blank.

Using the line type specified in the processing options, the system retrieves the G/L class code from the line type constants.
If the Line Type processing option is blank, the system uses the data dictionary default values for line type (value for the LNTY field is S and the value for RLNTY is N) and retrieves the G/L class code from the line type constants.

Note:

If you are using a line type with an inventory interface, the system determines which AAI to use as follows:

If the inventory interface is set to Y or C, the system uses the 4310 AAI.

If set to B, the system uses the 4315 AAI.

If set to A, the system uses the 4318 AAI.

4.2.6 Entering an Item Number

Access the Edit Item Relationship form.

Figure 4-4 Edit Item Relationship form

Description of "Figure 4-4 Edit Item Relationship form"

Item Number: Enter a value in this field if you want to filter on a particular item. For example, enter 42* if you want to view all items beginning with the number 42.
2nd Item Number: Enter the item number with which you want to associate the commodity. If you entered a commodity or UNSPSC code for an item in the F4102 table, these values appear when you inquire on the item. Each item can only be associated with one commodity. If you change the item on this form, the system only uses the new item on new transactions. The system does not update existing transactions with the new item for the commodity.

4.2.7 Entering a UNSPSC Code

Access the Edit UNSPSC Code form.

Figure 4-5 Edit UNSPSC Code form

Description of "Figure 4-5 Edit UNSPSC Code form"

Figure 4-6 Edit UNSPSC Code form

Description of "Figure 4-6 Edit UNSPSC Code form"

Primary

Select this option if you have related more than one UNSPSC code to a commodity. This option designates a primary UNSPSC code for the system to use as a default value for the requisition.

UNSPSC Code

Enter a UNSPSC code if you want to filter on a particular UNSPSC code for the field in the header.

For the field in the detail, enter a UNSPSC code if you want to add a new commodity relationship. When you enter a commodity during requisition entry, the system uses this UNSPSC code as the default value.

Note:

If you receive an error stating that the transaction cannot be committed, you must first turn on journaling for F40510 and F40520, and then retry.

UNSPSC Code Description

Enter a UNSPSC code description if you want to filter on a particular UNSPSC description for the field in the header.

For the field in the detail, the system uses the description associated with the UNSPSC code in the F40241 table.

Note:

If user's language preference is set and an alternate description for the UNSPSC code is defined in the user's preferred language, then the system displays the alternate description in the UNSPSC Alternate Description field.

4.2.8 Setting Up UNSPSC Code and Commodity Code Relationships

Access the Set up UNSPSC Code And Commodity Code Relationship form.

Figure 4-7 Set Up UNSPSC Code And Commodity Code Relationship Form

Description of "Figure 4-7 Set Up UNSPSC Code And Commodity Code Relationship Form"

UNSPSC Code: Enter the UNSPSC code for which you group commodity codes. If the language preference is set for the user, you can search and select for only the UNSPSC code, which has an alternate description specified in the user's preferred language.
Commodity Code: Enter the commodity code to group under a UNSPSC code.

Note:

When you select the UNSPSC code, the system displays the description that corresponds to it in the UNSPSC Code Description field.

4.2.9 Entering a Supplier Relationship for the Commodity

Access the Edit Supplier Relationship form.

Figure 4-8 Edit Supplier Relationship form

Description of "Figure 4-8 Edit Supplier Relationship form"

Supplier Number: Enter the address book number of the supplier or subcontractor that you want to associate with the commodity.
Branch Plant: Enter the branch/plant for the supplier.

4.2.10 Entering a Supplier's Commodity Code

Access the Edit Supplier Commodity Code Relationship form.

Figure 4-9 Edit Supplier Commodity Code Relationship form

Description of "Figure 4-9 Edit Supplier Commodity Code Relationship form"

Supplier Commodity Code: Enter the commodity code defined by the supplier. You obtain this information from the supplier, usually when you receive the information necessary for Direct Connect.
Supplier Commodity Code Description: Enter the description for the supplier's commodity code. You obtain this information from the supplier, usually when you receive the information necessary for Direct Connect.

4.2.11 Entering a G/L Account Number

Access the Edit G/L Account Relationship form.

Figure 4-10 Edit G/L Account Relationship form

Description of "Figure 4-10 Edit G/L Account Relationship form"

Branch Plant: Enter the branch/plant number of the account for which you want to set up a relationship for the commodity. This field is optional.
Object Account: Enter the object of the account number for which you want to set up a relationship for the commodity. This field is required.
Subsidiary: Enter the subsidiary of the account number for which you want to set up a relationship for the commodity. This field is optional.

4.2.12 Setting Up a UNSPSC Code for an Account Number

Access the Commodity Relationship Revisions form.

Figure 4-11 Commodity Relationship Revisions form

Description of "Figure 4-11 Commodity Relationship Revisions form"

Business Unit: Enter the business unit of the account number for which you want to set up a UNSPSC code relationship.
Object Account: Enter the object account of the account number for which you want to set up a UNSPSC code relationship.
Subsidiary: Enter the subsidiary of the account number for which you want to set up a UNSPSC code relationship
UNSPSC Code: Select a valid UNSPSC code to relate to the general ledger account number that you specified.

Note:

4.2.13 Running the Populate F4311 Commodity/UNSPSC Program

Select Adv/Tech Operations (G43E31), Populate F4311 Commodity/UNSPSC.

4.3 Setting Up the UNSPSC Code Descriptions

This section provides an overview of the UNSPSC code description definition and discusses how to:

Define the UNSPSC code descriptions.
Define alternate descriptions for UNSPSC Codes.

4.3.1 Understanding the UNSPSC Code Description Definition

UNSPSC provides a universal standard that you must use to classify products and services efficiently and accurately. UNSPSC is a classification code, not a product code. That is, UNSPSC stores a code for a specific category of products instead of storing a code for each product. Products and services are classified based on common functions, purposes, or tasks. To avoid creating a duplicate classification of commodity under a UNSPSC code, you must consider these factors:

A commodity can have many uses.
A commodity can have many variations.
A commodity can have many names.

The classification is based on the dominant use of the commodity in the global marketplace. The level of dominance may vary over time by country, region, or industry. Therefore, UNSPSC codes must be described in the language of the user. For example, a buyer in China can define a commodity code, classify it under a UNSPSC code, and describe the classification in the local language, which is Mandarin. This description can be easily understood by users using the same UNSPSC code for classifying their commodity code in future.

To enable global users to work with the UNSPSC codes, the JD Edwards EnterpriseOne system is modified to support this code in various languages. The system now stores and displays the description of the code in your preferred language.

Note:

You set up your preferred language in the User Profile Revisions program (P0092).

Use the UNSPSC codes to identify a category of products. The classification of products and services is based on common functions, purposes, or tasks. You can download a complete list of UNSPSC codes from the UNSPSC website (www.UNSPSC.com). When you download the codes, the system stores them in the UNSPSC Commodity Code table (F40241). You can change the descriptions associated with the codes using the UNSPSC Commodity Code Definition program (P40241).

Use the UNSPSC Code Alternate Description program (P40241D) to enter a description in the user's preferred language. You access the UNSPSC Code Alternate Description program from an option on the Row menu in the UNSPSC Commodity Code Definition program. You can search for the UNSPSC code based on the language in which you need to define the alternate descriptions. It is also possible to define alternate descriptions for multiple UNSPSC codes in the selected language at one time rather than defining alternate description for each UNSPSC codes one after another. The system displays the descriptions in the user's preferred language in the applications that use the UNSPSC code. The applications are:

UNSPSC to Account Relationship (P40243)
Commodity Structure (P40500)
UNSPSC and Commodity (P40510)
Enter Purchase Orders (P4310)
Item Master (P4101)
Non Stock Item Master (P4101N)

4.3.2 Forms Used to Define the UNSPSC Code Description

Form Name	Form ID	Navigation	Usage
Work With UNSPSC Commodity Codes	W40241A	UNSPSC Definition (G43A412), UNSPSC Definition.	Review and change the description of UNSPSC codes.
UNSPSC Commodity Code Revisions	W40241B	Click Add on the Work With UNSPSC Commodity Codes form.	Add a new description for the UNSPSC code.
Work With UNSPSC Code Alternate Description	W40241DA	Enter P40241D in the fast path.	Enter alternate descriptions for the UNSPSC codes in the user's preferred language.
UNSPSC Code Alternate Description	W40241DB	On the Work With UNSPSC Commodity Codes form, select a UNSPSC code and then select UNSPSC Alt Desc from the Row menu.	Enter UNSPSC descriptions in the user's preferred language.

4.3.3 Defining UNSPSC Code Descriptions

Access the Work With UNSPSC Commodity Codes form.

Figure 4-12 Work With UNSPSC Commodity Codes Form

Description of "Figure 4-12 Work With UNSPSC Commodity Codes Form"

UNSPSC Code: Enter the UNSPSC code. You can add or change the description associated with the code.
UNSPSC Code Description: Enter the description for the UNSPSC code. You can define alternate descriptions for this code by selecting UNSPSC Alt Desc from the Row menu.

4.3.4 Defining Alternate Descriptions for UNSPSC Code

Access UNSPSC Code Alternate Description form.

Figure 4-13 UNSPSC Code Alternate Description Form

Description of "Figure 4-13 UNSPSC Code Alternate Description Form"

Language Preference: Enter the user defined code (01/LP) that specifies the language to use on forms and printed reports. Before you specify a language, a code for that language must exist at either the system level or in your user preferences.
UNSPSC Code: Enter the unique UNSPSC code for which you need to define alternate description.
UNSPSC Alternate Description: Enter the alternate description for the UNSPSC code in the user's preferred language.