Processing the Procurement Cycle

This chapter provides an overview of the procurement cycle and discusses how to:

Acknowledge purchase orders.
Process shipment notifications and receipt routing.
Review inventory information.
Review purchase order information.
Review receipt information.
Review payment information.

Understanding the Procurement Cycle

This table lists the major steps of a typical procurement cycle and the user who performs each step:

Step	User
Purchase order creation and dispatch.	Buyer
Purchase order acknowledgement	Supplier
Purchase order acknowledgement change approvals.	Buyer
Purchase order shipment notification (status update or receipt routing).	Supplier
Movement in route.	Supplier or third-party
Purchase order receipt creation.	Buyer Note. The supplier can review the purchase order receipt.
Voucher creation.	Buyer Note. The supplier can review the voucher information.
Payment creation.	Buyer Note. The supplier can review the payment information.

With the exception of purchase order creation and voucher creation, the SRM portlet exposes these transactions.

Acknowledging Purchase Orders

This section provides an overview of purchase order acknowledgement and discusses how to:

Review purchase orders awaiting acknowledgement.
Submit purchase order acknowledgements.
Split purchase order lines.
Approve supplier changes.

Understanding Purchase Order Acknowledgment

When a buyer creates a purchase order in JD Edwards EnterpriseOne, the supplier for whom the purchase order was entered can use the SRM portlet to view the purchase order.

The supplier can acknowledge the purchase order without changes. In this situation, the system updates the purchase order line status to an acknowledged status in accordance with the order activity rules.

The supplier can also change the date, quantity, and unit price and then acknowledge the purchase order. If the quantity is short-supplied, the supplier can cancel the remaining quantity. If the supplier changes the date, quantity, or unit price, the system validates the changes against the tolerance rules and initiates a purchase order change approval workflow if the purchase order is out of tolerance.

If the supplier needs to indicate delivery over multiple dates, the supplier can split purchase order lines.

Note. The buyer can perform purchase order acknowledgment, including modifying or splitting the purchase order, on behalf of the supplier. If the buyer makes a change that exceeds the tolerance rules, the purchase order is routed through the approval process just as it would be if the supplier had done the acknowledgment.

Split Lines

You split lines if an order line is going to be split across multiple deliveries. When you acknowledge split lines, the system creates multiple order lines that are tracked individually from that time forward.

When assessing the tolerances for split lines, the system does not check the quantity individually on each line. Instead, the system sums the quantity from all of the split lines and validates the total against the original quantity.

The system assesses the price and date at the split line level.

Acknowledgement Change Approval

If the supplier makes changes to a purchase order that exceed the tolerance, the system sends a workflow message to the buyer's work center. The Acknowledgement Approval queue in the work center contains all of the orders that have failed the tolerance test and are waiting for the buyer to review and approve them.

The workflow message contains a link that enables the buyer to launch the Approve Purchase Order page in the Collaborative Portal. From this page, the buyer can approve or reject the supplier's changes. The buyer can also attach a text note or attachment that is included in the approval or rejection message that is sent back to the supplier.

When the buyer clicks either Approve or Reject on the Approve Purchase Order page, the system sends a workflow message to the supplier in either the Acknowledgement Approved or Acknowledgement Rejected work center queue.

Pages Used to Acknowledge Purchase Orders

Form Name	FormID	Navigation	Usage
Search for Orders to Acknowledge	W43S01D	Select the PO Acknowledgements Advanced Search task.	Locate purchase orders that are waiting for supplier acknowledgement.
View Order Header Information	W43S01G	Select the Purchase Orders Awaiting Acknowledge alert. Select the Purchase Orders Awaiting Acknowledgement Next x Days alert. Select Purchase Orders Awaiting Acknowledgement Past Due alert.	The supplier can use this page to review purchase orders that are awaiting acknowledgement.
Acknowledge Orders	W43S01B	Click Find on the Search for Orders to Acknowledge page. Click an order number on the View Order Header Information page.	Acknowledge purchase orders with or without changes.
Search for Orders to Acknowledge	W43S01D	Click the Search link on the Acknowledge Orders page.	Search for purchase orders to acknowledge that are not already listed on the Acknowledge Orders page. When you click Find on the Search for Orders to Acknowledge page, the system loads the purchase orders that are retrieved in the search on the Acknowledge Orders page.
Edit Order to Acknowledge	W43S01C	Click the Edit link on the Acknowledge Orders page.	Add an attachment to the purchase order or revise the following purchase order information: Supplier sales order number. Quantity. Unit purchase price. Delivery date. Shipment date. Payment terms. Carrier. Lot number.
Split and Acknowledge PO Lines	W43S01E	Click the Split Lines link on the Acknowledge Orders page.	Specify different delivery dates for specific quantities.
Approve Purchase Order	W43181A	Access the Changes Need To Be Approved message in the work center, click the button to access the detailed media object for the message, and then click the Purchase Order Approval link.	Approve or reject the changes that exceed tolerance that a supplier has made to a purchase order.

Reviewing Purchase Orders Awaiting Acknowledgement

Access the View Order Header Information page.

Submit Purchase Order Acknowledgements

Access the Acknowledge Orders page.

Edit

Click this link to access the Edit Order to Acknowledge page.

Split Line

Click this link to access the Split and Acknowledge PO Lines page.

Quantity

Specify the quantity of the item that you plan to deliver.

Cancel Remaining

Select this option if you are unable to deliver the complete order. The system cancels difference between the original quantity and the quantity you have specified in the Quantity field.

Delivery Date

Specify the date that you expect to deliver the item.

Select

Select this option for the lines that you want to acknowledge

Acknowledge

Click this button to acknowledge the purchase order.

The system acknowledges only those lines for which you have selected the Select check box.

If you have made changes to the quantity or delivery date, the system validates your changes against the tolerance rules and initiates the PO Change Approval workflow if your changes exceed the tolerance.

Splitting Purchase Order Lines

Access the Split and Acknowledge PO Lines page.

Quantity

Specify the quantity that you will deliver on a delivery date.

When you press tab after entering a quantity in this field, the system creates a new line on which you can specify the quantity for another delivery date. The total in the Quantity field for all lines must be greater than or equal to the order quantity.

Unit Purchase Price

Specify the unit cost of one item, as purchased from the supplier, excluding freight, taxes, discounts, and other factors that might modify the actual unit cost.

Delivery Date

Specify the delivery date for the quantities that are listed on each line.

Shipment Dates

Specify the shipment date for the quantities that are listed on each line.

Select

Select this option for the lines that you want to acknowledge

Acknowledge

Click this button to acknowledge the purchase order after you have split the lines and specified the appropriate delivery and shipment dates.

The system acknowledges only those lines for which you have selected the Select check box.

Approving Supplier Changes

Access the Approve Purchase Order page.

Approve

Click this button to move the purchase order to an approved status and to route a message to the supplier to notify the supplier that you have approved the supplier's changes to the purchase order.

Reject

Click this button to move the purchase order to a rejected status and to route a message to the supplier to notify the supplier that you have rejected the supplier's changes to the purchase order.

Processing Shipment Notifications and Receipt Routing

This section provides an overview of shipment notifications and receipt routing and discusses how to:

Send a shipment notification.
Revise shipment details.
Advance the routing of a shipment.
Edit movement details.

Understanding Shipment Notifications and Receipt Routing

The supplier can notify the buyer of a shipment in one of two ways:

The supplier can update the purchase order line status to indicate that the items on the line are in transit.
The supplier can move shipments into routing.

The supplier can specify the quantity, lot information, and a shipment identifier. Suppliers can also cancel any remaining quantity on the order.

The system either updates the purchase order line status or moves the shipment into routing, depending on how the processing options are set for the Self-Service - Purchase Order Receipts program (P4312S).

Note. You can set up a version of the Self-Service - Purchase Order Receipts program to enable the buyer to perform purchase order acknowledgements on behalf of the supplier so that the system updates the status to approved, bypassing the purchase order approval process that results if the buyer makes changes to the purchase order that exceed the tolerance.

Movement in Route

Suppliers and third-party service providers can use the Supplier Relationship Management (SRM) portlet to move receipted purchases through various routing steps.

The Self-Service - Movement in Routing program (P43250SS) enables suppliers and third-party service provides to move a shipment to the next route operation, as well as to specify quantity and lot information.

Pages Used to Process Shipment Notifications and Receipt Routing

Form Name	FormID	Navigation	Usage
Search for Order Lines to Notify	W4312SH	Select the PO Awaiting Shipment Advanced Search task.	Search for purchase orders that are awaiting shipment.
View Orders to Ship	W4312SB	Select the Purchase Orders Awaiting Shipment alert. Select the Purchase Orders Awaiting Shipment Next x Days alert. Select the Purchase Orders Awaiting Shipment Past Due alert.	Access purchase orders that are awaiting shipment to send a shipment notification.
Notify Order Shipment	W4312SF	Click the Find link on the Search for Order Lines to Notify page. Click the order number link on the View Orders to Ship page.	Notify the buyer of a shipment. Note. Whether the shipment notification results only in a status update or results in moving the receipt into routing depends on the how the processing options are set for the version of the Self-Service - Purchase Order Receipts program (P4312S) that you are using.
Edit Line Item Detail	W4312SG	Click an EDIT link on the Orders Awaiting Shipment page.	Specify the shipment identifier, quantity to ship, and shipment date.
View Orders on Route	W43250SSA	Select the Purchase Orders At Route Step alert. Select the Purchase Orders At Route Step More Than x Days alert.	Access shipments that are at a specific route step to advance the routing of the shipment.
Move Line Items on Route	W43250SSD	Select the Movement In Route Advanced Search task.	Move a shipment to the next route operation and specify quantity and lot information.
Edit Line Item Detail	W43250SSE	Click an Edit link on the Move Line Items on Route page.	Update the movement details, as well as lot information. This system passes this information to the receipt process if the next step moves the quantity into stock.

Sending a Shipment Notification

Access the Notify Order Shipment page.

To notify the buyer of a shipment:

Click the EDIT link to revise the shipment details if necessary and to specify a shipment date.
Select the Select check box for the purchase order lines that you have shipped.
Click Notify.
Click OK on the shipment confirmation message.

If you have entered a shipment identifier in the Shipment Identifier field on this page, the system applies that shipment identifier to all selected lines when you click Notify.

Revising Shipment Details

Access the Edit Line Item Detail page.

Shipment Identifier

Specify the code on the container or that you assign to the container in which the items on this purchase order or order line are shipped.

Advancing the Routing of a Shipment

Access the Move Line Items on Route page.

To advance the routing of a shipment:

Click the Edit link to revise the movement details if necessary.
Select the Select check box for the shipment.
Click Move In Route.
Click OK on the shipment confirmation message.

To Oper (to operation)

Specify the routing operation or step to which to move the items.

Editing Movement Details

Access the Edit Line Item Detail page.

To Operation

Specify the routing operation or step to which to move the items.

Move Quantity

Specify the number of units that have been either moved or dispositioned.

Location

Specify the storage location from which goods are moved.

Lot/SN (lot/serial number)

Enter a number that identifies a lot or a serial number. A lot is a group of items with similar characteristics.

Lot Expiration Date

Specify the date on which a lot of items expires.

Reviewing Inventory Information

This section provides an overview of the review of inventory information and lists the pages to review inventory information.

Understanding the Review of Inventory Information

The Self-Service - Inventory Information Inquiry program (P41204) enables suppliers to review inventory levels for items that are relevant to them.

Pages Used to Review Inventory Information

Form Name	FormID	Navigation	Usage
Search for Inventory Information	W41204A	Select the Inventory Advanced Search task.	Locate inventory information that is relevant to the supplier who is using the portlet.
View Inventory Information	W41204B	Click Find on the Search for Inventory Information form.	Review inventory information.
View Inventory Detail	W41204D	Click the View link in the Additional Information column on the View Inventory Information page.	Review detailed inventory information.

Reviewing Purchase Order Information

This section provides an overview of the review of purchase order information and lists the pages to review order information.

Understanding the Review Purchase Order Information

The SRM - PO Inquiry program (P43S05) enables you to inquire on orders at different status levels, such as awaiting acknowledgement, purchase order approvals, and awaiting shipment. This application is the central resource that integrates order information into one view. For example, if the order is at the awaiting acknowledgement status, clicking the status link takes the user to the acknowledgement application.

Pages Used to Review Order Information

Form Name	FormID	Navigation	Usage
Search for Orders	W43S05C	Select the Purchase Orders Advanced Search task.	Locate purchase orders for the supplier who is using the portlet.
View Order Detail Status	W43S05A	Select the Purchase Orders At Status alert. Select the Purchase Orders Next x Days alert. Select the Purchase Orders On Hold alert. Select the Purchase Orders Past Date alert. Click Find on the Search for Orders page.	Review purchase order information.
View Order Detail Line Information	W43S05B	Click a line number link on the View Order Detail Status page.	Review detailed information for a specific purchase order.

Reviewing Receipt Information

This section provides an overview of the review of receipt information and lists the pages to review receipt information.

Understanding the Review of Receipt Information

The SRM - Receipt Inquiry program (P43121SS) enables you to inquire on orders that have been received. This application is the central resource that integrates receipt information into one view. If the order in a receipt route, you can click the quantity in route link to access the movement in routing application where you can update the route step. If a voucher has been created for the order, you can click the vouchered link to go to the payment information application.

Pages Used to Review Receipt Information

Form Name	FormID	Navigation	Usage
Search for Receipts	W43121SSC	Select the Search for Receipt Lines task.	Locate receipt records.
View Receipt Detail Status	W43121SSA	Click Find on the Search for Receipt page.	Access receipt information.
View Receipt Line Information	W43121SSB	Click a line number link on the View Receipt Detail Status page.	Review detailed information about a receipt. The data on this page is for review only.

Reviewing Payment Information

This section provides an overview of the review of payment information and lists the pages to review payment information.

Understanding the Review of Payment Information

The Self-Service - Supplier Payment Inquiry program (P04111) enables a supplier to inquire on the payment information that is relevant to that supplier. This application is the central resource that integrates payment information into one view. You can click the invoice number link to access detailed payment information. You can click the order number link to access purchase order inquiry. You can click the payment status link to view the payment history.

Pages Used to Review Payment Information

Form Name	FormID	Navigation	Usage
Advanced Search	W04111B	Select the Search for Payment Information task.	Locate payment records.
View Payment Information	W04111A	Click Find on the Advanced Search page.	Review information about multiple payments.
View Payment Information Detail	W04111C	Click an invoice number link on the View Payment Information page.	Reviewed detailed information about a specific payment.
View Payment History	W04111E	Click the View Payment History link on the View Payment Information Detail page. Click the payment status link on the View Payment Information page.	Review the payment history for a specific invoice.
View Order Detail	W4310SSB	Click an order number link on the View Payment Information page.	Review information about the purchase orders that are associated with the payment.
View Item Detail	W4310SSF	Click a line item link on the View Order Detail page.	Review detailed information about a purchase order line item.
View Receipt Lines	W4310SSC	Click a quantity received link on the View Order Detail page.	Review information about the receipts that are associated with the payment.
View Receipt Line Detail	W4310SSG	Click a line number link on the View Receipt Lines page.	Review detailed information about a receipt.

Edit	Click this link to access the Edit Order to Acknowledge page.
Split Line	Click this link to access the Split and Acknowledge PO Lines page.
Quantity	Specify the quantity of the item that you plan to deliver.
Cancel Remaining	Select this option if you are unable to deliver the complete order. The system cancels difference between the original quantity and the quantity you have specified in the Quantity field.
Delivery Date	Specify the date that you expect to deliver the item.
Select	Select this option for the lines that you want to acknowledge
Acknowledge	Click this button to acknowledge the purchase order. The system acknowledges only those lines for which you have selected the Select check box. If you have made changes to the quantity or delivery date, the system validates your changes against the tolerance rules and initiates the PO Change Approval workflow if your changes exceed the tolerance.

Quantity	Specify the quantity that you will deliver on a delivery date. When you press tab after entering a quantity in this field, the system creates a new line on which you can specify the quantity for another delivery date. The total in the Quantity field for all lines must be greater than or equal to the order quantity.
Unit Purchase Price	Specify the unit cost of one item, as purchased from the supplier, excluding freight, taxes, discounts, and other factors that might modify the actual unit cost.
Delivery Date	Specify the delivery date for the quantities that are listed on each line.
Shipment Dates	Specify the shipment date for the quantities that are listed on each line.
Select	Select this option for the lines that you want to acknowledge
Acknowledge	Click this button to acknowledge the purchase order after you have split the lines and specified the appropriate delivery and shipment dates. The system acknowledges only those lines for which you have selected the Select check box.

Approve	Click this button to move the purchase order to an approved status and to route a message to the supplier to notify the supplier that you have approved the supplier's changes to the purchase order.
Reject	Click this button to move the purchase order to a rejected status and to route a message to the supplier to notify the supplier that you have rejected the supplier's changes to the purchase order.

To Operation	Specify the routing operation or step to which to move the items.
Move Quantity	Specify the number of units that have been either moved or dispositioned.
Location	Specify the storage location from which goods are moved.
Lot/SN (lot/serial number)	Enter a number that identifies a lot or a serial number. A lot is a group of items with similar characteristics.
Lot Expiration Date	Specify the date on which a lot of items expires.