4 Purchasing

This chapter describes the new forms and updates to the forms in the Purchasing module. It includes the following:

• Utilization Code

• About Triangulation Purchase

• PO Header Maintenance

Utilization Code

In Brazil, every transaction type such as the purchase order, transfer, and return to vendor (RTV) has the information about the purpose of buying/selling/transfer. This is referred to as Fiscal Utilization. The fiscal utilization determines the appropriate taxes for the retail operation, the impact on stocks and costs, and the type of information to be sent to other systems.

To meet this requirement, the following windows now include the Utilization Code in the Options menu:

• PO Header Maintenance

• Transfer Maintenance

• Mass Return Transfer Utilization Code

Purchase Order Utilization Code

This section describes the Utilization option in the PO Header Maintenance window.

Note: The procedure described in this section is applicable to transfers, and mass returns transfer.

Adding Utilization Code

Navigate: From the RMS Start Menu, select Ordering, then select Orders. The Order Search window appears.

Search for and retrieve an order in Edit Order mode. The PO Header Maintenance window appears.

1. In the PO Header Maintenance window, from the Options menu, select Utilization.

   Figure 4-1 Utilization Option Window

   
   

2. Click Utilization. The Localization Flexible Attributes window appears.

   Figure 4-2 Localization Flexible Attributes Window

   
   

3. Click the Utilization Code LOV. Select the relevant utilization code from the Utilization Code LOV.

4. Click Apply. The utilization code is associated with that PO. A PO cannot be approved without a valid utilization code associated with it.

About Triangulation Purchase

In Brazil, when creating a purchase order, you can set the supplier (referred to as the main supplier) to whom the payment will be made and another supplier (a distributor or facilitator) who will deliver the merchandise on behalf of the main supplier (referred to as the delivery supplier). This mechanism is referred to as the triangulation purchase.

The order is placed on a primary supplier who co-ordinates merchandise delivery from its trading partners. This helps the retailer with the hassles of negotiating with multiple suppliers. It can also be used where the supplier engages supply chain partners, such as clearing and forwarding agents/consolidators to deliver merchandise to the final destination.

For triangulation, one Nota Fiscal is sent by the supplier for whom the order is raised. Another complimentary Nota Fiscal is sent by the delivery supplier to charge any additional expenses (such as a change in tax rate/transportation expenses) incurred during the shipping of merchandise.

PO Header Maintenance

A few changes have been made to the PO Header Maintenance window to support the triangulation operations in Brazil.

Navigate: From the RMS Start Menu, select Ordering. In the Contents Of Ordering window, select Orders. The Order Search window appears.

Search for and retrieve an order in Edit Order mode. The PO Header Maintenance window appears.

Figure 4-3 PO Header Maintenance Window

Table 4-1 Changes made to the PO Header Maintenance Window

Legend	Modification/Addition	Description
A	The Supplier field was renamed to Supplier–Order, and the Supplier Site field was renamed to Supplier Site–Order.	Select the main supplier here.
B	Two new fields ie Supplier–Delivery and Supplier Site–Delivery have been added.	Select the delivery supplier from the LOV.
C	Triangulation check box	Select this check box to enable the Supplier/Site–Delivery field.

In case you select the Triangulation check box, the values in the Supplier-Order and Supplier-Delivery fields will be different. The Supplier/Site–Delivery field is not enabled, if the triangulation check box is not selected.

Note: The Triangulation operation is not supported for POs created using Allocation, Replenishment, xOrder API, EDI, and SIM. It is not applicable for contract PO as well. Triangulation is applicable only for manually-created orders.

Viewing Tax Details

The Options menu of the PO Header Maintenance window has been updated to enable you to view the tax details.

In order to view the tax details of the purchase order, do the following:

1. On the PO Header Maintenance window, from the Options menu, select Tax Breakup. The Transaction Tax Breakup Details window appears.

   Figure 4-4 Transaction Tax Breakup Details Window

   
   

2. In this window, you can only view the tax details for the items in a PO.

   In the above window, the Tax Breakup section displays the tax details for each item.

3. A new column called Modified Taxable Base has been added in the Tax Breakup section of the Transaction Tax Breakup window.

   For some items in Brazil, a tax rule is applicable that modifies the taxable basis. For such items, the tax rate is applied on the modified taxable basis. The Modified Taxable Base column displays the modified taxable basis applicable for the item.

Calculating Taxes

In the Transaction Tax Breakup Details window, click the Calculate Tax button.

Figure 4-5 Transaction Tax Breakup Details Window

A call is made to the Tax Engine. Relevant transaction details such as PO number, PO date, supplier, store/warehouse, item code, cost, utilization code, quantity and necessary calculations for tax are sent. The Tax Engine sends the tax back to RMS. The calculation of tax happens on an on-demand basis.

If the tax calculation is not done before PO approval, it takes place during the PO approval. For externally or automatically generated orders, the tax calculation during approval is automatic and not on demand.

For items that are eligible for a change in the taxable basis, the tax rate is applied on the modified taxable basis. The Modified Taxable Basis column depicts the basis at which the tax is applied.

Viewing Tax Details at Item-Location

To view the tax details at the item/location level, a new Tax Breakup button has been added on the PO Item/Location window.

To view the changes, do the following:

Navigate: From the RMS Start Menu, select Ordering. In the Contents of Ordering window, select Orders. The Order Search window appears.

Search for and retrieve an order in Edit Order mode. The PO Header Maintenance window appears.

1. Click Items on the PO Header Maintenance window. The PO Item Maintenance window appears.

   Figure 4-6 PO Item Maintenance Window

   
   

2. Click Locations on the PO Item Maintenance window. The PO/Item Location window appears.

   Figure 4-7 PO/Item Location Window

   
   

3. A new button called Tax Breakup is added on the PO/Item Location window to view the tax details at the item/location level. Click the Tax Breakup button, and the Transaction Tax Breakup Details window opens.

   Figure 4-8 Transaction Tax Breakup Details window

   
   

   This window displays the tax details for the items. The new column called Modified Taxable Base displays the changed taxable base applicable for certain items in Brazil.