Getting Started with JD Edwards EnterpriseOne Procurement Management

This chapter discusses:

JD Edwards EnterpriseOne Procurement Management overview.
JD Edwards EnterpriseOne Procurement Management integrations.
JD Edwards EnterpriseOne Procurement Management implementation.

JD Edwards EnterpriseOne Procurement Management Overview

Procurement is the process of obtaining products and services from suppliers. It includes decisions about how much and when to purchase goods and services, the actual purchasing of goods and services, and the process of receiving the requested goods or services. The purchasing cycle ensures that the appropriate quantity and quality of equipment, material, supplies, or services are acquired at the best price and from the most appropriate source. Procurement involves and affects more departments than just the purchasing department. An integrated procurement system provides the purchasing professional with links to information across all of an organization's functions and departments. Some of the links include activities and information, including receiving transactions, order revision data, supplier profiles, accounts payable status, special order processing, and the tracking of incoming purchases through receipt routing.

JD Edwards EnterpriseOne Procurement Management Integrations

The JD Edwards EnterpriseOne Procurement system from Oracle works with other JD Edwards EnterpriseOne systems to ensure that all information is fully integrated. We discuss integration considerations in the implementation chapters in this implementation guide. Supplemental information about third-party application integrations is located on the Oracle | PeopleSoft Customer Connection website.

JD Edwards EnterpriseOne General Ledger and JD Edwards EnterpriseOne Accounts Payable

The JD Edwards EnterpriseOne Procurement system integrates with the JD Edwards EnterpriseOne General Ledger system from Oracle and the JD Edwards EnterpriseOne Accounts Payable system from Oracle. With the use of automatic accounting instructions (AAIs) and user-input account numbers, the system relays pertinent transaction information to the accounting systems.

The JD Edwards EnterpriseOne Procurement system retrieves supplier payment information, tax information, and so forth from the JD Edwards EnterpriseOne Accounts Payable system.

JD Edwards EnterpriseOne Address Book

The JD Edwards EnterpriseOne Procurement system coordinates with the JD Edwards EnterpriseOne Address Book system from Oracle to retrieve:

Supplier address information.
Ship-to address information.
Warehouse address information.
User identification information.

JD Edwards EnterpriseOne Manufacturing and Supply Chain Management

The JD Edwards EnterpriseOne Procurement system can interact with several JD Edwards EnterpriseOne manufacturing systems from Oracle to help process parts availability, work orders, forecasting and planning, product costing, and so forth.

Logistics

The company might integrate the JD Edwards EnterpriseOne Procurement system with the JD Edwards EnterpriseOne Inventory Management system. This integration involves the validation and exchange of information that pertains to inventory items. The JD Edwards EnterpriseOne Procurement system integrates with other JD Edwards EnterpriseOne logistics systems from Oracle:

JD Edwards EnterpriseOne Warehouse Management.
JD Edwards EnterpriseOne Sales Order Management.
JD Edwards EnterpriseOne Requisition Self Service.

Requisitions and purchase orders can be sent from Oracle's JD Edwards EnterpriseOne Requisition Self Service to JD Edwards EnterpriseOne Procurement.
JD Edwards EnterpriseOne Forecasting.
JD Edwards EnterpriseOne Requirements Planning.
JD Edwards EnterpriseOne Advanced Pricing.

JD Edwards EnterpriseOne Job Costing

The JD Edwards EnterpriseOne Procurement system can also interact with the JD Edwards EnterpriseOne Job Costing system from Oracle to view subcontract commitments. Using job status inquiry, you can view the job and project commitment details on an account-by-account basis.

JD Edwards EnterpriseOne Electronic Data Interchange

Electronic data interchange (EDI) is the computer-to-computer exchange of business transactions, such as purchase orders, invoices, and shipping notices, in a standard format.

The JD Edwards EnterpriseOne EDI system from Oracle consists of system 47, which is the application interface containing interface files, tables, and programs. System 47 works with third-party translation software that translates EDI standard data into a flat file format so that the JD Edwards EnterpriseOne application software can manage the data. When you receive documents, the third-party translation software:

Retrieves the data via network communications.
Translates the data from EDI standard format to JD Edwards EnterpriseOne application table format.
Moves the translated data into the JD Edwards EnterpriseOne EDI flat files.

The inbound conversion program moves the translated data into the JD Edwards EnterpriseOne EDI interface tables. The JD Edwards EnterpriseOne EDI system then moves the data into the appropriate application tables. When you send documents, the system performs the procedures in reverse order.

This table lists the EDI documents currently supported for the JD Edwards EnterpriseOne Procurement system. This table includes corresponding codes for ANSI and EDIFACT, which are EDI standard cross-industry terms:

TRANSACTION	ANSI	EDIFACT	Inbound To	Outbound From
Purchase Order	850	ORDERS	Sales	Procurement
Purchase Order Acknowledgement	855	ORDRSP	Procurement	Sales
Invoice	810	INVOIC	Accounts Payable, Procurement	Sales
Receiving Advice	861	RECADV	Procurement, Sales	Procurement
Purchase Order Change	860	ORDCHG	Sales	Procurement
Purchase Order Response Message	865	ORDRSP	Procurement	Sales

JD Edwards EnterpriseOne Procurement Management Implementation

This section provides an overview of the steps that are required to implement the JD Edwards EnterpriseOne Procurement system.

In the planning phase of the implementation, take advantage of all JD Edwards EnterpriseOne sources of information, including the installation guides and troubleshooting information. A complete list of these resources appears in the preface in About This Documentation with information about where to find the most current version of each.

When determining which electronic software updates (ESUs) to install for JD Edwards EnterpriseOne Procurement, use the EnterpriseOne and World Change Assistant. EnterpriseOne and World Change Assistant, a Java-based tool, reduces the time required to search and download ESUs by 75 percent or more and enables you to install multiple ESUs at one time.

See JD Edwards EnterpriseOne Tools 8.98 Software Update Guide

For information about the Oracle Business Accelerator solution for implementation of JD Edwards EnterpriseOne Procurement, review the documentation available.

See http://www.peoplesoft.com/corp/en/iou/implement/rapid_start/rapid_start_prtr_notes.jsp

Global Implementation Steps

This table lists the suggested global implementation steps for the JD Edwards EnterpriseOne Procurement system:

Step	Reference
1. Set up global user-defined codes (UDCs).	See JD Edwards EnterpriseOne Tools 8.98 System Administration Guide, “Working with User Defined Codes”
2. Set up companies, fiscal date patterns, and business units.	See Setting Up Organizations.
3. Set up next numbers.	See Setting Up Next Numbers.
4. Set up accounts and the chart of accounts.	See Creating the Chart of Accounts.
5. Set up General Accounting constants.	See Setting Up Constants for General Accounting.
6. Set up multicurrency processing, including currency codes and exchange rates.	Setting Up General Accounting for Multicurrency Processing Setting Up Exchange Rates
7. Set up ledger type rules.	See Setting Up Ledger Type Rules for General Accounting.
8. Enter address book records.	See Entering Address Book Records.
9. Set up inventory information, such as branch/plant constants, default locations and printers, manufacturing and distribution AAIs, and document types.	See Setting Up the Inventory Management System.
10. Set up shop floor calendars.	See Setting Up Shop Floor Management.
11. Set up manufacturing constants.	See Setting Up Manufacturing Constants.

Procurement Implementation Steps

This table lists the suggested application-specific implementation steps for the JD Edwards EnterpriseOne Procurement system:

Step	Reference
1. Define order line types.	See Defining Order Line Types.
2. Set up order activity rules.	See Setting Up Order Activity Rules.
3. Set up procurement constants.	See Setting Up Procurement Constants.
4. Define procurement next numbers.	See Understanding the Setup of Procurement Next Numbers.
5. Set up user-defined codes.	See Setting Up Distribution AAIs.
6. Set up AAIs.	See Setting Up UDCs.
7. Create tolerance rules.	See Creating a Tolerance Rule.
8. Set up order hold information.	See Entering Order Hold Information.
9. Set up landed costs.	See Setting Up Landed Costs.
10. Set up nonstock items.	See Setting Up Nonstock Items.
11. Define print messages.	See Defining Print Messages.
12. Set up templates for purchase orders.	See Understanding Purchase Order Templates.
13. Create model logs.	See Creating a Model Log.
14. Set up hierarchical logs.	See Setting Up Hierarchical Logs.