This chapter provides an overview of business units in PeopleSoft Purchasing and discusses how to:
Establish PeopleSoft Purchasing business units.
Establish change options and approval rules.
Establish purchasing processing options.
Prepare PeopleSoft Purchasing value-added tax (VAT) environments.
A business unit is an operational subset of an organization that tracks and maintains its own set of requisitions and purchase orders. Each business unit has its own way of storing information and its own processing guidelines. PeopleSoft Purchasing business units share vendor, purchase order, and receiving information with PeopleSoft Payables business units in the same setID.
After you determine how many business units that you need and how to organize them, define them in the PeopleSoft Purchasing system.
Note. The information in this section, which describes some of the essential traits of business units as applied to PeopleSoft Purchasing, can help you determine the best way to define business units for the PeopleSoft Purchasing implementation. PeopleSoft implementation personnel can also help you define the appropriate business unit structure.
Some purchasing transactions use business units as key identifiers. For example, you cannot create a single purchase order that includes items that have different business unit requests. Each business unit that is requesting items generates a separate purchase order.
Define business units in this order:
Define generic PeopleSoft business units.
Define PeopleSoft General Ledger business units.
Link PeopleSoft business units to PeopleSoft Purchasing.
Specify requisition-processing and purchase order-processing information for PeopleSoft Purchasing business units.
Link PeopleSoft General Ledger business units to PeopleSoft Purchasing for general ledger distribution needs.
Specifying Responsibility
You can establish separate business units to specify areas of responsibility. For example, a department may be responsible for purchasing a particular type of item. You can establish a business unit specifically for this department. Using strategically created business units enables you to group purchases for analysis. The business unit configuration can also help you maintain the required level of accounting control.
Interunit Accounting
PeopleSoft Purchasing interunit accounting enables you to track interunit purchases among PeopleSoft General Ledger business units. If you require this, designate each of the organizational entities as a PeopleSoft General Ledger business unit. If you've centralized the procurement practices, you can define one PeopleSoft Purchasing business unit that can generate charges to each PeopleSoft General Ledger business unit.
PeopleSoft General Ledger Considerations
A PeopleSoft Purchasing business unit must be associated with a PeopleSoft General Ledger business unit, although this does not have to be a one-to-one relationship. You can place multiple PeopleSoft Purchasing business units under one PeopleSoft General Ledger business unit, or you can charge multiple PeopleSoft General Ledger business units from one PeopleSoft Purchasing business unit. Often, the PeopleSoft Purchasing business units will be the same as the PeopleSoft General Ledger business units.
PeopleSoft Payables Considerations
To pass accounting information from PeopleSoft Purchasing to PeopleSoft Payables and through to PeopleSoft General Ledger, you must install PeopleSoft Payables and PeopleSoft Purchasing in the same database. This requirement also applies if you want to use the matching functionality that PeopleSoft software provides.
You don't need a one-to-one relationship between a PeopleSoft Purchasing business unit and a PeopleSoft Payables business unit. One PeopleSoft Payables business unit can process data for many PeopleSoft Purchasing business units, and multiple PeopleSoft Payables business units can create vouchers for one PeopleSoft Purchasing business unit. However, you must configure these business units to share the same set of vendors.
Vendors
A business unit can be a subset of the organization, but from purchasing and accounts payable perspectives, a business unit can also represent a group of vendors.
If you have multiple companies or subsidiaries with unique sets of vendor requirements, consider establishing separate business units for each set of requirements. You can share a set of vendors across business units, but you cannot share subsets of vendors. Within a PeopleSoft Purchasing business unit, you can access all of the vendors in the set that is assigned to that business unit, but you can't exclude subsets of vendors in that set.
See Also
Using Interunit and Intraunit Accounting and ChartField Inheritance
To define the PeopleSoft Purchasing business units, use the Purchasing Business Unit component (BUS_UNIT_PM).
This section discusses how to:
Create PeopleSoft Purchasing business units.
Define request for quote (RFQ) required rules.
Define standard comments.
Define matching options.
Define dispatch options.
Set up VAT defaults.
Copy VAT default setup.
Create business unit options.
Define transaction document autonumbering options.
Page Name |
Definition Name |
Navigation |
Usage |
BUS_UNIT_TBL_PM |
Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Definition, Business Unit Definition |
Create PeopleSoft Purchasing business units or update existing ones. |
|
RFQ_REQUIRED_RULE |
|
Define and view details about the RFQ required rule. |
|
BUS_UNIT_PM_COMNT |
Click the Edit Comments link on the Purchasing Definition - Business Unit Definition page. |
Define standard comments to print on dispatched purchase orders. |
|
BUS_UNIT_PM_MATCH |
Click the Matching link on the Purchasing Definition - Business Unit Definition page. |
Define matching rules. |
|
BUS_UNIT_PM_IMAGE |
Click the Define Dispatch Options link on the Purchasing Definition - Business Unit Definition page. |
Define file directory locations for images that you want to print on purchase orders. |
|
BUS_UNIT_PM_EE |
Click the Entry Event Defaults link on the Purchasing Definition - Business Unit Definition page. |
Select default entry events at the business unit level. Note. You can access this page if entry events are enabled. See Using Entry Events. |
|
VAT_DEFAULTS_DTL |
|
Enter VAT defaults for the requisition, purchase orders, RFQs, and procurement cards.
Note. If you access this page by clicking the VAT
Default link on the Purchasing Definition - Business Unit Definition
page, the VAT driver and VAT driver keys are inherited from the PO Business
Unit Definition (purchase order business unit definition) component and cannot
be changed. |
|
VAT_DFLT_SRCH_COPY |
Click the Copy Defaults From link on the VAT Defaults Setup page. |
Copy VAT defaults from one business unit to another. |
|
BUS_UNIT_TBL_PM2 |
Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Definition, Business Unit Options |
Create business unit options or update existing ones. |
|
BUS_UNIT_TBL_PM3 |
Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Definition, Document Numbering |
Define transaction document autonumbering options. |
Access the Purchasing Definition - Business Unit Definition page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Definition, Business Unit Definition).
When you access this page in Add mode, you can enter only the unit description, default setID, and short description. Enter this information and click the Create BU (create business unit) button, which appears only in Add mode, to create the business unit. Then, or if you access the page in Update/Display mode, the remaining fields on the page become available for entry.
Process Option |
Select the processing option ID for this business unit to be used throughout the procurement cycle. Values are defined on the Purchasing Options - Purchasing Options page. This defines options such as freight terms and payment terms for the business unit. |
Location |
Select the location code for the physical location of this business unit. The system uses this code to derive the organization address that prints on dispatched transactions. Define values on the Location - Location Definition page. |
Billing Location |
Select the code for the location where invoices are sent for this business unit. Define values on the Location - Location Definition page. By default, this information appears on transactions that are created for this business unit. |
Close Days and Cancel Days |
Enter the number of days that a requisition or purchase order, or a canceled requisition or purchase order, must remain open after its last update activity before it is eligible for closure. Cancel and close days enable you to delay the closure of requisitions and purchase orders after they are canceled or entirely received. If you are using PeopleSoft Payables, you can also use cancel and close days to delay closure after requisitions or purchase orders are invoiced. Note. The close days value that you define for the business unit is for purchase order reconciliation and has no relationship to the close days value on the Close Short Run control pages. |
PS/GL (PeopleSoft/general ledger) |
Select to enable transactions for this business unit to be posted to the general ledger and to link this business unit to a VAT entity. The GL Unit (general ledger unit) field becomes available for entry. |
GL Unit (general ledger unit) |
Select a PeopleSoft General Ledger business unit. By default, this business unit appears on transaction distribution lines for this PeopleSoft Purchasing business unit. If you are linking this PeopleSoft Purchasing business unit to a VAT entity, enter the applicable PeopleSoft General Ledger business unit. You can access this link using the PeopleSoft General Ledger business unit. You can't directly link a PeopleSoft Purchasing business unit to a VAT entity. |
AM Unit (asset management unit) |
Select the default PeopleSoft Asset Management business unit for the transactions that this PeopleSoft Purchasing business unit creates. When you create a purchasing transaction, the PeopleSoft Asset Management business unit appears by default if the item is an asset. You can override this information at the transaction level. |
Capitalize |
Select if most of the asset purchases are capital items. |
AP Unit (accounts payable unit) |
Select the PeopleSoft Payables business unit that is to be used on evaluated receipt settlement (ERS) purchases. |
Accrue SUT for ERS orders (accrue sales and use tax for evaluated receipt settlement orders) |
Select if sales and use tax (SUT) should accrue for any ERS orders that this business unit creates. |
SS Unit (strategic sourcing unit) |
Select the default PeopleSoft Strategic Sourcing (SS) business unit that is to be used for this PeopleSoft Purchasing business unit. Note. When you enter the same PeopleSoft Strategic Sourcing business unit for multiple PeopleSoft Purchasing business units, PeopleSoft Strategic Sourcing copies requisitions from multiple PeopleSoft Purchasing business units into an event. |
Rate Type |
Select the rate type to be used for currency conversion. By default, the currency code and rate type apply to all purchasing transactions for this business unit. |
Tax Vendor |
Select to integrate with a third-party tax vendor for tax processing. The system calculates tax from the third-party tax vendor (Vertex or Taxware) when it creates purchase orders online or when sourcing to a purchase order. When you select this check box, depending on the tax vendor that you select, certain fields appear in the group box below this check box. Note. This check box is available only if you select a tax vendor (Vertex or Taxware) on the Installation Options - Overall page. |
Taxware Group Box
This group box is available only if third-party Taxware or Vertex software is installed, and if the Tax Vendor check box is selected.
Company |
Enter the tax vendor company code. This field appears for these third-party tax products: Vertex Q Series, Vertex O Series, and Taxware Sales and Use Tax. The company code that you enter in this field passes information to the third-party Taxware or Vertex software as input parameters. |
Organization |
Enter the organization. This field appears instead of the Company field for the Taxware Enterprise third-party tax product. |
Division |
Enter the tax vendor division code. This field appears for these third-party tax products: Vertex Q Series, Vertex O Series, and Taxware Sales and Use Tax. The division code passes information to the third-party Taxware or Vertex software as input parameters. |
Department |
Enter the tax vendor department. This field appears only for the Vertex O Series third-party tax product. The department code passes information to the third-party Taxware or Vertex software as input parameters. |
Use Freight Product Code |
Select this option to associate the freight with the tax vendor product code and to indicate applicable tax rates. Note. This field is available only for Taxware. |
RFQ Required Rule
Use this group box to define a threshold line amount and RFQ required rule that, when the amount is exceeded or the rule is met, requires a requisition item to go through the RFQ cycle before it is included on a purchase order.
Line Amount Threshold |
Enter a threshold amount. The threshold amount is the line amount limit that triggers that an RFQ is required to source the requisition. When a user exceeds the threshold amount for a requisition line, the system resets the RFQ Required check box to selected for that line on the requisition. For example, if you are buying something and it costs more than 1000 USD, the system requires that you get a couple of bids before it will source it to the recommended or specified vendor. |
RFQ Required Rule (request for quote required rule) |
Select an RFQ rule from the rules defined in the RFQ Required Rules component. |
|
Click the Go To RFQ Required Rule button to access the RFQ Required Rule page, where you can define and view details about the RFQ required rule. |
See Also
Defining Purchasing Processing Options
Preparing PeopleSoft Purchasing VAT Environments
Access the RFQ Required Rule page (click the Go To RFQ Required Rule button on the Purchasing Definition - Business Unit Definition page).
Use this page to define ChartField values that will set the RFQ Required option to Yes for requisitions created online or through the Requisition Loader process. You can also define the RFQ Required option in the Purchasing Item Attributes or Item Category component when an RFQ is required any time that the item or category is specified on a requisition.
Some organizations require RFQ processing whenever a specific ChartField value is referenced on a requisition. For example, whenever a specified project is entered on a requisition, the funding requirements of the project require that the request go out for bid. The RFQ Required Rule page enables you to define the RFQ Required flag based on that ChartField value. When a requisition is created, the system checks the ChartField values that you define on this page and sets the RFQ Required option accordingly.
Set "RFQ Required Flag" to "No" if Contract exists (set request for quote required flag to no if contract exists) |
Select to bypass the RFQ cycle if a contract exists. Note. The system ignores the Default Contract on Req check box setting when the system applies the RFQ rule and you select this check box. |
Default the found Contract ID to Requisition line |
Select to supply by default the contract ID to the requisition line. |
See Also
Access the Standard Comments page (click the Edit Comments link on the Purchasing Definition - Business Unit Definition page).
The comments that you enter on this page are printed on dispatched purchase orders if you select the Print BU Comments (print business unit comments) check box on the Dispatch Purchase Orders page. You can set up these comments to contain the terms and conditions for purchase orders for this business unit.
See Also
Dispatching and Printing Purchase Orders
Access the Matching Options page (click the Matching link on the Purchasing Definition - Business Unit Definition page).
Select the default matching rules for this business unit. If matching rules are defined at the vendor level, those rules will override business unit-level matching rules. You can override both the business unit and vendor level matching rules on the purchase order.
See Also
Establishing Matching and Document Association Options
Access the Define Dispatch Options page (click the Define Dispatch Options link on the Purchasing Definition - Business Unit Definition page).
Print Image on Purchase Order and PO Dispatch Image Location (purchase order dispatch image location) |
Select to print an image (logo) on purchase orders, and enter the directory location of the image file. |
Print Signature on PO (print signature on purchase order) and PO Dispatch Signature Location (purchase order dispatch signature location) |
Select to print a signature on purchase orders, and enter the directory location of the signature file. |
Template ID |
Select the report template to use with this business unit to dispatch a purchase order. You use the report template to identify a XML Publisher report layout. The template provides a common report layout when dispatching purchase orders for both PeopleSoft eProcurement and Purchasing. If the Template ID field on this page is blank, then the system uses the default template on the XML Publisher Report Definition page ( Reporting Tools, XML Publisher, Report Definition, Template). This field appears only if you have selected the Enable XML Publisher check box on the Purchasing page of the Installation Options component. This check box selects the Oracle XML Publisher to format and print purchase orders during the dispatch process for both PeopleSoft Purchasing and PeopleSoft eProcurement. You use Oracle XML Publisher for reporting. It is a Java-based product within the Oracle Fusion Middleware family. |
Image Locations
Consider these points when working with images and their locations:
For Structured Query Report (SQR) processes to work as designed, you must store associated images in external files.
The folder in which you store external image files must be shared.
For Microsoft Windows NT environments, define the directory locations using the universal naming convention (for example, \\server_name\folder_name\…).
When you run the PO Dispatch/Print (purchase order dispatch and print) process (POPO005), the image file to print on the purchase order is determined by the output format that you select on the Process Scheduler Request page. The PO Dispatch/Print process takes the image file name that you enter here and parses out the file extension information. The process uses this file extension to determine the image type that the PRINT-IMAGE command uses.
This table describes file extension values and their compatible image types to be used in the PRINT-IMAGE command:
File Extension |
Image Type |
No extension |
BMP-FILE |
.BMP |
BMP-FILE |
.JPG |
JPEG-FILE |
.GIF |
GIF-FILE |
.EPS |
EPS-FILE |
Others |
HPGL-FILE |
The next two tables describe output type options that are available for the PO Dispatch/Print process on the Process Scheduler Request page, along with their compatible output formats, output file extensions, and image types.
This first table represents output types for web, file, and email:
Output Format |
Output File Extension |
Image Type That Works |
CSV |
.CSV |
None |
HP |
.LIS |
HPGL-FILE |
HTM |
.HTM |
JPEG-FILE, GIF-FILE, BMP-FILE |
LP |
.LIS |
None |
OTHER |
.LIS |
None |
|
|
JPEG-FILE |
PS |
.LIS |
EPS-FILE |
SPF |
.SPF |
BMP-FILE |
This table represents output types for a printer:
Output Format |
Output File Extension |
Image Type That Works |
HP |
None |
HPGL-FILE |
LP |
None |
None |
OTHER |
None |
None |
PS |
None |
EPS-FILE |
Note. The HPGL image type works with HP LaserJet printers.
Printing Images
To print an image:
Check the PSSQR.INI file to verify that the SQRDIR is set to the path where the SQR executables are stored.
Ensure that the drive that is storing the image has the correct permissions set.
Verify that the image is not corrupt.
In a UNIX environment, you can print only EPS-FILE image types.
See Also
Dispatching and Printing Purchase Orders
Preparing to Dispatch by Fax and Email
Enterprise PeopleTools PeopleBook: XML Publisher for PeopleSoft Enterprise
Access the VAT Defaults Setup page (click the VAT Default link on the Purchasing Definition - Business Unit Definition page or select Set Up Financials/Supply Chain, Common Definitions, VAT and Intrastat, Value Added Tax, VAT Defaults).
You can insert rows for any or all of the VAT driver keys, as well as the VAT country or state. You can also delete any existing rows.
Copy Values to New Rows |
If you are inserting a row for a VAT driver key, select this check box to copy all the VAT defaults from the previous row to the new row. Otherwise, all VAT default fields for the new row will be blank. |
Copy Defaults From |
Click to access the VAT Defaults Copy From page, which you can use to copy VAT default specifications from another key combination for the same VAT driver. |
Return to VAT Defaults Sub-Search (return to value-added tax defaults sub-search) |
Click to return to the Purchasing Definition component. |
VAT Reporting Country (value-added tax reporting country) |
Select the country or countries for which you are defining VAT defaults. For regular defaults, defaults are obtained for the VAT reporting country. For service VAT treatment defaults, defaults are obtained for the supplier's location country. |
Defaulting State |
As applicable, select the state for which you want to define VAT default values. |
Default Details |
Enter the effective date, status and, if applicable, the VAT setID. |
VAT Apportionment Control (value-added tax apportionment control) |
When you create purchase orders for a PeopleSoft Purchasing business unit, the system selects a default business unit for VAT recovery and rebate calculations based on this value. Business units have different VAT recovery and rebate percentages based on their locations. Values are: Dist GL BU (distribution general ledger business unit): Selects the PeopleSoft General Ledger business on the purchase order distribution line. Txn BU (transaction business unit): Selects the business unit on the purchase order header. Txn GL BU (transaction general ledger business unit): Selects the PeopleSoft General Ledger business unit on the purchase order header. |
Note. The remaining fields on the page vary based on the combination of VAT driver and VAT driver keys. See the section on VAT fields for details about the fields and VAT drivers that appear.
See Also
Access the Copy VAT Defaults From page (click the VAT Default link on the Purchasing Definition - Business Unit Definition page and click the Copy Defaults From link on the VAT Defaults Setup page).
Search Criteria |
Enter the criteria by which you want to search. |
Search |
Click to retrieve the results based on the criteria entered. |
Copy From |
Select a link for any of the results returned to view the details of the VAT setup on the Copy VAT Defaults Setup page. When you have viewed the details, you can click Copy to copy the VAT setup. The system returns you to the VAT Defaults Setup page with the copied fields. Or you can select the appropriate option for any of the results returned and click Copy to copy from that row. The system returns you to the VAT Defaults Setup page with the copied fields. |
Access the Purchasing Definition - Business Unit Options page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Definition, Business Unit Options).
Additional Business Unit Options
Allow Multicurrency Reqs (allow multicurrency requisitions) |
Select to enable requisition lines with different currencies. Item-vendor pricing may be in a currency other than the business unit currency. The vendor currency is automatically converted to the business unit currency for requisition approval purposes. When the requisition lines are sourced to a purchase order, the system uses the requisition currency (if sourced using Requisition Selection with Define PO = 'Y'); otherwise, the vendor currency is used. |
Calculate VAT On Req (calculate value-added tax on requisitions) |
Select to enable VAT to process and calculate onto requisitions and to pass the VAT information from the requisition to other transactions in the procurement process. |
Allow Multicurrency PO (allow multicurrency purchase order) |
Select to enable purchase orders to be entered in the vendor currency, even if the vendor currency differs from the business unit currency. If you do not select this check box, and requisitions are entered in a currency different from the business unit currency, the system creates purchase orders in the business unit currency. The system converts requisition prices and amounts to the business unit currency of the purchase order. |
Default Contract on Req (default contract on requisition) |
Select to automatically supply a contract to a requisition. The system searches for and ensures that the correct contract is selected for use with the requisition. Along with selecting this check box, the system verifies that the Auto Default check box is selected on the Contract page. This makes the contract available to automatically default onto requisition and purchase order transactions. You can override contracts that have been selected by the system. This enables you to receive contract prices for requisition items and to more accurately track budgets and pre-encumberance balances. |
Allow Business Item Attributes |
Select to enable attributes to be established for any item in this business unit. The business unit item attributes override those that you establish for the item in the Item Definition - Purchasing Attributes component. Note. Selecting the Allow Business Item Attributes check box is useful if you must maintain item-specific attributes by business unit as well as by setID. For example, suppose that several of the business units normally purchase the same item, but each business unit has a different lead time for this item. If you enable business unit item attributes, the lead time that the business unit sets overrides the default lead time, and each business unit can set a different lead time for the same item. |
Allow Receipt Load Cascade |
Select to enable this business unit to receive quantities for a purchase order line and cascade that quantity over multiple schedules. For example, assume that you have one purchase order line for 150 items and three schedules for 50 items, each to be delivered a month apart. When the first shipment arrives for receiving, a quantity of 75 items exists. Rather than returning 25 of the items and waiting for the next shipment, you can receive 50 on the first schedule and cascade 25 to the second schedule. In effect, you receive these 25 items early and deduct them from the second schedule. When the next shipment arrives, you receive the remaining 25 items. You can cascade line quantities until an entire order is filled. Note. The Allow Receipt Load Cascade check box is applicable only when you are using the Receiver Load Application Engine process (PO_RECVLOAD) to build receivers from loaded data. This check box is typically used to load bar code transactional data into the system, which builds the data into receivers and cascades the quantities down to the purchase order lines and schedules appropriately. |
Default Contract on PO (default contract onto purchase order) |
Select to indicate that the system should automatically search for appropriate contracts for purchase order lines. The check box applies only to manually created purchase orders, and not orders created using a batch process. This automates the process of selecting the most appropriate contract for use with manually created purchase orders. The default value for the field is deselected. If you select to search for contracts, the system begins its search for contracts with process types of Purchase Order, General, or Release-To-Single PO Only and that are in a current version with an Approved status. If the check box is deselected, the system does not search for a contract. If multiple contracts exist, the system selects the contract where the status is Approved, the version is current, and with the most recent (but not future) contract begin date. After validating the contract and using it on the transaction, the system:
This option does not apply to PeopleSoft Services Procurement project roles on the contract. Services Procurement searches for an applicable contract on the work order, and uses it on a purchase order regardless of the Default Contract Flag check box value. This option also does not apply to blanket purchase orders. |
Accrue PO Receipts |
Select to enable this business unit to accrue receipts for expensed items without invoices. When you run the Receipt Accrual process (PO_REVACCR), receipts for which you have not yet received an invoice are included in the process. |
Accrue Non/PO Receipts (accrue non/purchase order receipts) |
Select to enable this business unit to accrue receipts for noninventory items without a purchase order. |
Separate Inspection |
Select to require that inspection information be entered apart from receiving information. Inspections can be performed on the receiving dock or in the inspection location to which the inventory item is routed. |
Notify Inventory Manager |
Select to include inventory workflow notifications for return to vendor processing. The system notifies users defined in the INV MGR role that goods are ready to be shipped back to the vendor. The system generates an email notification when the return disposition is Ship or Destroy for Inventory RTVs. You can override the value for individual vendors using the Return to Vendor Defaults page in PeopleSoft Purchasing. |
Tax Exempt |
Select to enable purchasing documents that are created in this business unit to be exempt from sales and use tax. |
ID |
Enter the tax exempt identifier. The ID field becomes available when you select the Tax Exempt check box. |
RTV Adjust Source (return to vendor adjust source) |
Select to enable the adjustment of source documents when items are returned to the vendor for replacement. If you select this check box, the net receipt quantity is adjusted down by the return to vendor (RTV) quantity using this formula: (Net Receipt Quantity) = (Net Receipt Quantity) – (RTV Qty) |
Allow Curr UOM Conv Rate (allow current unit of measure conversion rate) |
Select to calculate the purchase order standard quantity using the current conversion rate at receiving or time of purchase order change. If you do not select this check box, or if you do not select the option at receiving or purchase order change, the system uses the purchase order conversion rate. Note. This check box is available only when PeopleSoft Inventory is installed. If PeopleSoft Inventory is not installed, receiving always uses the current conversion rate and won't update the purchase order distribution. Purchase order change uses the current conversion rate and updates the purchase order distributions. |
RTV Adjust Fees (return to vendor adjust fees) |
Select to include adjustment fees when items are returned to the vendor. These fees could include restocking fees or other fees that are imposed on the transaction. |
Allow PO Deletion (allow purchase order deletion) |
Select to enable authorized users to delete purchase orders in the selected business unit. |
RTV Reopen PO (return to vendor reopen purchase order) |
Select to change the purchase order schedule status to Open when items are returned to the vendor for replacement. When the items are reshipped, this check box enables you to receive the items against the original schedule. Note. If you are using commitment control, you can't reopen closed purchase orders, and you will not be able to select this check box. This functionality is not available when you are using commitment control. |
Allow Requisition Deletion |
Select to enable authorized users to delete requisitions in the selected business unit. |
Sourcing Controls
% Unit Price Tolerance/Tolerance Over (percent unit price tolerance/tolerance over) and % Unit Price Tolerance/Tolerance Under (percent unit price tolerance/tolerance under) |
Enter the percentage over and under by which the purchase order price can vary from the requisition price. By default, these values appear on requisitions that are created for this business unit. |
Liquidate Method
Allow Liquidate by Quantity when Distribute by Quantity |
Select to indicate that the purchase order business unit is liquidated by quantity when distributed by quantity. If you do not select this check box, the Comm. Cntrl. Budget Processor process automatically liquidates pre-encumbrance and encumbrance balances by amount only. |
Note. The installation must include commitment control to use this option.
Default Liquidate Method |
Select a default liquidate method for the purchase order business unit. You can liquidate by quantity or amount. |
Note. You must select the Allow Liquidate by Quantity when Distribute by Quantity check box to define a quantity default liquidate method.
See Also
Acknowledging Purchase Orders Online
Maintaining Receipt Distribution Information
Access the Purchasing Definition - Document Numbering page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Definition, Document Numbering).
Select Requisitions, Purchase Orders, Receivers, Requests For Quotes, and Return to Vendors to enable autonumbering for the associated transaction. The last number that was assigned for each transaction appears.
You define autonumbering for contracts on the Set Controls - Contracts page.
This section discusses how to:
Define purchase order change options and approval requirements.
Define requisition change options and approval requirements.
See Also
Page Name |
Definition Name |
Navigation |
Usage |
BUS_UNIT_PO_APPR |
Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Definition, PO Change Options |
Define purchase order change options and approval requirements for each business unit. |
|
BUS_UNIT_REQ_APPR |
Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Definition, Req Change Options |
Define requisition change options and approval requirements for each business unit. |
Access the PO Approval Options page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Definition, PO Change Options).
Change Template |
Select a change template for purchase orders within this business unit. A purchase order change template identifies which field changes on a purchase order cause the system to generate the following actions:
To create a change template for purchase orders, use the change template type of Purchase Order. |
Change Order Map Template |
Select the change order map template. The Purchase Order Acknowledgements process uses this template to determine the fields that can be changed by the supplier on the purchase order acknowledgements pages using the EDX process. Note. These fields must already exist on the online purchase order acknowledgement pages. |
Approval Framework Control
Use the Approval Framework Control group box to enable the Approval Workflow Framework for approving purchase orders at the header level, line level, or both. For the approval of purchase orders in PeopleSoft Purchasing, you can choose between two workflow methods; the approval framework or the PeopleTools Workflow Technology.
Note. The system displays a message that indicates whether the workflow approval framework is in use by PeopleSoft Purchasing.
If approvals are not required for either the Approval Framework or Virtual Approver, the system automatically approves stockless purchase orders. The orders are approved even if the Create POs in Approved Status option is deselected on the run control. The system ignores the buyer's purchase order creation status in the sourcing programs and only applies the run control value.
If approvals are required, the system goes through the stockless item approvals the same as it does for any other type of item where it checks the exception codes to bypass approvals.
PO Workflow Approval Required (purchase order workflow approval required) |
Select to indicate that you want to use the approval framework for purchase order approvals. When you select this check box, you initiate PeopleSoft Approval Framework and end the use of PeopleTools Virtual Approver (part of PeopleTools workflow technology). Any current pending purchase order transactions will finish the approval process using the Virtual Approver. From this action forward, the system uses the approval workflow framework for new purchase orders. Warning! After initiating the approval framework, you cannot activate Virtual Approver again. When you select this check box, the system displays an additional group box on this page with the title Workflow Approval Not Required. This group box enables you to determine what sources of purchase orders do not require approval; for example, purchase orders created by a contract release may not need approval since a contract is in place. Both new purchase orders and changes to existing purchase orders are included in this group box. |
Resubmit Workflow for Quantity or Price Decrease |
Select to indicate that purchase orders require re-approval after the quantity or price has been decreased. |
See PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework.
Automatically Approve Change Requests
Buyer Accepted POA Source (buyer accepted purchase order acknowledgements source) |
Select to automatically approve change order requests that are generated by online purchase order acknowledgements (POAs) that a supplier enters directly into the system. This check box is selected by default. Note. To use this option, the installation must include PeopleSoft eSupplier Connection. |
All Other Sources |
Select to automatically approve change order requests that are generated by other change order sources such as the Close Backorders process, PeopleSoft Supply Planning, PeopleSoft Order Management (direct shipment), PeopleSoft eProcurement (change requests), and PeopleSoft Manufacturing. |
Workflow Approval Not Required
This group box only displays if you choose to use the approval workflow framework for purchase order approvals. Define the purchase order input sources that do not require approval by selecting the Not Required check box on the row.
PO Create Exceptions |
For newly created purchase orders, select the input sources do not require approval. The sources are:
|
PO Change Request Exceptions |
For changes to an existing purchase order, select the input sources that do not require approval. The sources are:
|
Virtual Approver Control
Use the Virtual Approver Control group box to determine your settings for approving purchase orders using the Virtual Approver feature. The Virtual Approver feature is part of the PeopleTools Workflow Technology. For the approval of purchase orders in PeopleSoft Purchasing, you can choose between two workflow methods; PeopleSoft Approval Framework or the PeopleTools Workflow Technology. The Virtual Approver enables you to approve the purchase order at the header level. You can route a purchase order for approval based on the amount, the ChartFields used, or both. To implement workflow approvals, define the roles, rules, and routings using the PeopleSoft Application Designer, PeopleCode, and Workflow Administrator. Your system is delivered with basic approval rules already established.
Note. The fields in this group box are unavailable for entry if you have selected the PO Workflow Approval Required check box on this page. You can only choose one workflow approval method for purchase orders.
PO Approval Business Process (purchase order approval business process) |
Select the business process for which you are establishing approval rules. This business process corresponds to the approval rule set. Define approval rule sets in PeopleSoft Workflow Administrator. |
PO Amount Approval Needed (purchase order amount approval needed) |
Select to indicate that the purchase order amount should be approved. |
PO Amount Approval Rule Set (purchase order amount approval rule set) |
Select the approval rule set to be used to apply purchase order amount approvals. |
PO ChartField Approval Needed (purchase order ChartField approval needed) |
Select to indicate that the purchase order ChartField should be approved. |
PO ChartField Approval Rule (purchase order ChartField approval rule) |
Select the approval rule set to be used to apply purchase order ChartField approvals. |
When you select either the PO Amount Approval Needed (purchase order amount approval needed) or PO ChartField Approval Needed (purchase order ChartField approval needed) check box, the system forces purchase order transactions to flow through the approval process before continuing through the purchasing life cycle.
If you do not select either of these check boxes, the purchasing authorizations that are defined on the User Preferences - Procurement: Purchase Order Authorizations page determine approval statuses. In this case, an authorized user can change a transaction approval status from Open to Approved. Although you define approval processes through PeopleSoft Workflow, you do not have to implement worklist routings to approve purchase orders. You can use designated online pages for purchase order approvals if you do not use the worklist routing option in PeopleSoft Workflow.
When a purchase order is created for a buyer whose default purchase order status is Open on the Buyer Table page, the purchase order default status is set to Open. To approve the purchase order, an authorized buyer must set the purchase order status to Pending Approval or Approved. At this point, if neither amount nor ChartField approvals are required, the purchase order status changes to Approved.
If at least one type of approval is required, the purchase order status starts at Pending Approval and remains in this status until all applicable approvals are complete. After receiving the required approvals, the purchase order status changes to Approved.
When a purchase order is created for a buyer whose default purchase order status is Pending Approval/Approved, the purchase order default status is set to either Approved (if neither type of approval is needed) or Pending Approval (if one or both types of approval are needed).
PO Create Exceptions
Use the PO Create Exceptions (purchase order create exceptions) fields to define exceptions for groups of purchase orders created in batch. These exceptions are grouped based on the sourcing process where the purchase order originated. When you select a sourcing process for approval exception, the system overwrites the approval options that you define on this page. If you want one of the approval options to remain in effect, select the appropriate check box.
These settings can force only the exception of an approval that is required for a purchase order. It can't force an approval that isn't required. If a purchase order is modified online after a selected exempt process creates it, the purchase order is subject to the general approval rules that you select on this page.
PO Process (purchase order process) |
Select the sourcing process that you want to be exempt from the approval options. Values are Auto Select, Contract PO's (contract purchase orders), Online Source, PAR Location Replenishment, Planning Load, Production Load, and Request for Quotation. |
Amt Appr Needed (amount approval needed) |
Select to continue amount approval for this process. |
ChrtFld Appr Needed (ChartField approval needed) |
Select to continue ChartField approval for this process. |
If you use requisitions to designate the authority to purchase, you may want to create purchase orders automatically in Approved status when the purchase orders are sourced from approved requisitions. In this case, insert exception rows for AutoSelect and Online Source and clear the Amt Appr Needed and ChrtFld Appr Needed check boxes. Purchase orders that are created from these sources are now exempt from workflow approval requirements and are automatically created with a status of Approved.
When purchase orders are created from contracts, amounts are already approved. However, if the business unit rule says that ChartFields on the purchase orders must be approved, the purchase order must go through the same approval process as online purchase orders.
Suppose that you create a purchase order using the AutoSelect Requisitions process (PO_REQSORC). If you define amount and ChartField approval exceptions for this process, the purchase order is created with a status of Approved. If a buyer changes a price on the purchase order online and thereby changes the amount of the purchase order, the purchase order status changes to Pending Approval. At this point, the business unit approval rules apply to the modified purchase order. Once a purchase order is modified, these rules apply regardless of the purchase order source and exceptions that are defined.
See Also
PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework
Enterprise PeopleTools PeopleBook: Workflow Technology
Access the Req Approval Options page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Definition, Req Change Options).
Change Order Option (requisition change order option) |
Select a specific category of requisitions that are eligible for change order tracking. Values are: A: (Approved Requisitions) N: (No Change Orders) S: (Sourced) V:(Valid Budget Checked) Note. The Valid Budget Checked change order option enables you to use requisition change order templates to track changes based on approval, budget, or sourcing statuses. PeopleSoft Purchasing provides three options to determine when a requisition change order should be tracked depending on an organization's business controls. For example, changes to the requisition affect only the buying organization after the requisition has been sourced to a purchase order; however, departmental controls may require that you track changes after requisition approval has occurred. |
Change Template (requisition change order template) |
Select a change template for requisitions within this business unit. A requisition change template identifies which field changes on a requisition cause the system to generate the following actions:
To create a change template for requisitions, use the change template type of Requisition. |
Approval Framework Control
Use the Approval Framework Control group box to enable the approval framework for approving requisitions at the header level, line level, or both. For the approval of requisitions in PeopleSoft Purchasing, you can choose between two workflow methods; the approval framework or the PeopleTools Workflow Technology.
Note. The system displays a message that indicates whether the approval framework is in use by Purchasing.
Workflow Approval Required (workflow approval required) |
Select to indicate that you want to use the approval workflow framework for requisition approvals. When you select this check box, you initiate the approval workflow framework and end the use of PeopleTools Virtual Approver (part of PeopleTools workflow technology). Any current pending requisition transactions will finish the approval process using the Virtual Approver. From this action forward, the system uses the approval workflow framework for new requisitions. Warning! After initiating the approval workflow framework, you cannot activate Virtual Approver again. |
Resubmit Workflow for Quantity or Price Decrease |
Select to indicate that requisitions require re-approval after the quantity or price has been decreased. |
Virtual Approver Control
Use the Virtual Approver Control group box to determine your settings for approving requisitions using the Virtual Approver feature. The Virtual Approver feature is part of the PeopleTools Workflow Technology. For the approval of requisitions in PeopleSoft Purchasing, you can choose between two workflow methods; the Approval Framework or the PeopleTools Workflow Technology. The Virtual Approver enables you to approve the requisition at the header level. You can route a requisition for approval based on the amount, the ChartFields used, or both. To implement workflow approvals, define the roles, rules, and routings using the PeopleSoft Application Designer, PeopleCode, and Workflow Administrator. Your system is delivered with basic approval rules already established.
Req Approval Business Process (requisition approval business process) |
Select the business process for which you are establishing approval rules. This business process corresponds to the approval rule set. Define approval rule sets in PeopleSoft Workflow Administrator. |
Req Amount Approval Rule (requisition amount approval rule) |
Select the approval rule set to be used to apply requisition amount approvals. |
Req ChartField Approval Rule (requisition ChartField approval rule) |
Select the approval rule set to be used to apply requisition ChartField approvals. |
Selecting the Req Amount Approval Needed or Req ChartField Approval Needed check box forces requisition transactions to flow through the approval process before continuing through the purchasing life cycle.
If you do not select one of these check boxes, the purchasing authorizations that are defined on the User Preferences - Procurement: Requisition Authorizations page determine approval statuses. In this case, an authorized user can change a transaction approval status from Open to Approved. Although you define approval processes through PeopleSoft Workflow, you do not have to implement worklist routings to approve requisitions. You can use designated online pages for requisition approvals if you do not use the worklist routing option in PeopleSoft Workflow.
See Also
PeopleSoft Enterprise FSCM 9.1 PeopleBook: Approval Framework
Enterprise PeopleTools PeopleBook: Workflow Technology
To define purchasing processing options, use the Purchasing Processing Options component (BUS_UNIT_OPT_PM).
This section discusses how to:
Define purchasing processing options.
Define transaction dispatch methods.
Define freight options.
Define purchase order acknowledgement (POA) settings.
Define VAT service treatment setup.
Define reason codes for change requests and change orders.
Access the Purchasing Options page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Options).
You can establish multiple processing options for a given setID. To create distinct groups of processing options, give each new group a distinct processing option ID. Processing-options groups with different IDs can have the same effective date, which enables you to choose among these groups for varying situations. You can also effective-date processing options within a processing option ID. Within each processing-options group, you can add a new set of effective-dated purchasing options.
Effective-dating processing options enables you to activate or inactivate processing options within a processing option ID. This functionality is useful for making date-sensitive changes to a group of processing options (payment terms, for example) while keeping the other options identical.
Accounting Template |
Select the accounting template for this setID, which is used to determine ChartField values that offset one-sided transactions in PeopleSoft Purchasing. |
Accounting Date Indicator |
Enter C (current) to use the current system date as the accounting date. Enter S (specific) to use the specific accounting date that you provide here. This value is useful if you do not want multiple journal entries created from a subsystem. Enter S and enter an accounting date for all transactions. When the Journal Generator runs, it finds one date for the entire period and creates one journal entry. Alternatively, the system would create separate entries for each accounting date that the Journal Generator found. Note. If you select S, you must return to this definition each month and update the accounting date for the next period. |
Edit Combinations |
Select for any PeopleSoft Purchasing business units that require ChartField combination edits. |
Chartfield Edit Option |
Select the action that you want the system to take when it encounters errors if you choose to verify ChartFields for this setID: Default: Uses the default value from the Journal Options General Ledger Definition page. None: Deselects the ChartField edit option. No action is taken when errors occur. Recycle: Enables you to save the transaction, but you can't post until you correct the error. Reject: Rejects the transaction and does not enable you to save until you correct the error. Use Suspen (use suspense): Posts the transaction to a suspense account. You should coordinate with the PeopleSoft General Ledger implementation team to determine whether you should select this option. If you do select this option, the PeopleSoft General Ledger team must create journal entries to move the amounts out of the suspense account and into the appropriate distribution accounts. Warning: Issues a warning and enables you to save. |
Automatic UOM Round Option (automatic unit of measure round option) |
Select the method by which you want to be notified of automatic rounding of item quantities. (When you are converting between units of measure, item quantities on purchasing documents are automatically rounded according to the rules that are set up on the Units of Measure page.) Values are: Error: Stops the conversion if automatic rounding changes the quantity. No Warning: Automatic rounding occurs without notification that conversion will change the UOM value. Warning: Automatic rounding occurs with a notification of any unit-of-measure value change. |
Payment Terms ID |
Select a payment term ID for this setID. By default, this value appears on the purchase order unless you override it at the vendor level. Define payment terms IDs on the Single Pay Terms and Multiple Pay Terms pages. |
Payment Terms Basis Date Type |
Select the basis date type for the selected payment terms ID. The system calculates the payment due date from this date. Values are: Accounting Date, Constructive Doc Receipt Date, Invoice Date, Receipt Date, Ship Date, and User Specified Date. |
Ship Via Code |
Select the ship via code for the setID. Define values on the Ship Via Codes page. |
Freight Terms Code |
Select the freight terms code for the setID. Define values on the Freight Terms page. |
Physical Nature |
Select to indicate whether the object is a physical good or service. |
Where Performed |
Select to indicate the location where the service is most often performed. Values are: Buyer's: Select if the service was physically performed at the buyer location. Ship From: Select if the service was physically performed at the bill from location. Ship To: Select if the service was physically performed at the bill to location. Supplier's: Select if the service was physically performed at the supplier location. Note. The Physical Nature and Where Performed fields are used as part of the purchasing defaulting hierarchy. The Where Performed field is available when the value in the Physical Nature field is Service. These fields are supplied by default onto requisition, purchase order, contract, and RFQ lines. These fields also affect the VAT treatment determination. |
Open Period |
Select how the system is to handle open period in transactions if you are using commitment control. Values include: Error: The system issues an error and does not permit you to complete the transaction because the budget date isn't within the valid open period date range. This is the default value if commitment control is enabled. None: The system does not check for open period. This is the default value if commitment control is not selected. Warning: The system issues a warning but does not prevent you from completing the transaction even though the budget date isn't within the valid open period date range. |
Default Amount Only PO to "Do Not Receive" (default amount only purchase order to "do not receive |
This check box appears deselected by default. When you create an amount-only purchase order online or through the sourcing process, if this check box is selected, the purchase order lines Receiving Required field will appear as Do Not Receive. If this check box is deselected, the system uses the other defaulting hierarchy to determine the Receiving Required field value for the purchase order line. The system checks first at the item and then the item category to determine the receiving requirement. |
Inventory Sourcing Options
Check Inventory Available Qty (check inventory available quantity) |
Select to have the system check available inventory when creating inventory demand. If this check box is selected, the system creates inventory demand for the first eligible warehouse in priority order that has sufficient quantity to meet the demand. If this check box is deselected, inventory demand is created for the first eligible warehouse in priority order (unless it is the requesting warehouse), regardless of whether that warehouse has sufficient quantity. Note. The distribution network determines the priority order for eligible warehouses. If no distribution network is designated for a ship-to location, the Build Inventory Demand process (PO_REQINVS) resets the Inventory Source option to N (no) for sourcing by the PO Calculations process (PO_POCALC). |
Partial Qtys Can Ship (partial quantities can ship) |
Select to have the Build Inventory Demand process enable an order to be partially sourced from one or more PeopleSoft Inventory business units, with any remaining quantity being sourced to a purchase order. If you do not select this check box and a quantity cannot be fully sourced from one PeopleSoft Inventory business unit, the process sets the inventory source setting on the staging table to N (no), and the entire quantity is sourced to a purchase order. |
Item Not Stocked at IN Unit (item not stocked at inventory business unit) |
Select to have the Build Inventory Demand process source requests differently when no PeopleSoft Inventory business unit is found to stock this item. Values include: Error out: The Build Inventory Demand process errors out when no PeopleSoft Inventory business unit is found to stock the requested item. If you select this value, the process sets the stage statuses to Error in the purchase order staging tables. Source to PO (source to purchase order): The Build Inventory Demand process sources the request to a purchase order when no PeopleSoft Inventory business unit is found to stock the requested item. If you select this value, the process sets the inventory source status for the request to N (no) so that the PO Calculation process can source it to a purchase order. Note. This and the Check Inventory Available Qty and Partial Qtys Can Ship check boxes work together to help the Build Inventory Demand process determine the method by which requested demand is sourced, as well as which distribution network warehouses are eligible for sourcing. |
Dispatch Method |
Click to access the Dispatch Method page. Use the Dispatch Method page to define the dispatch methods for purchase orders, request for quotes, return to vendors, and contracts. |
Freight Option |
Click to access the Freight Option page. Use the Freight Option page to define freight options for the business units. |
VAT Default (value-added tax default) |
Click this link to access the VAT Defaults Setup page. The VAT Defaults Setup page is a common page that you can use to set up VAT defaulting for all PeopleSoft applications that process VAT transactions. Using this page, you can define PeopleSoft Purchasing defaults, as applicable. |
VAT Service Treatment Setup (value-added tax service treatment setup) |
Click to access the Service VAT Treatment Defaults Setup page. The Service VAT Treatment Defaults Setup page is a common page that you can use to set up VAT defaulting for all PeopleSoft applications that process VAT transactions. On this page, you can define service-related defaults for PeopleSoft Purchasing, as applicable. |
POA Setting (purchase order acknowledgement setting) |
Click to access the POA Setting page. Use this page to define whether purchase order acknowledgements will be required from suppliers. |
Change Reason Codes |
Click to access the Procurement Change Reason Codes page where you can define settings for reason codes used when creating change requests and change orders in PeopleSoft Purchasing, eProcurement, and Services Procurement. These setting enable you to define default reason codes and determine if reason codes or comments should be required when creating or approving these transactions. |
See Also
Building Inventory Demand Transactions
Defining Additional Common Information
Editing ChartField Combinations
Access the Dispatch Method page (click the Dispatch Method link on the Purchasing Options page).
Note. Vendors can define their own dispatch method settings on the Procurement Options page.
Purchase Order, Request For Quote, and Return to Vendor |
Select the dispatch method for transactions that this business creates. Values are EDX (electronic data exchange), Email, Fax, Phone, and Print. |
Contract |
Select the dispatch method for transactions that this business creates. Values are Email, Fax, Phone, and Print. |
ProCard Dispatch Option (procurement card dispatch option) |
Select this option if you are using the procurement card functionality on purchase orders. The option that you select will affect the printed text that appears on the PO/Dispatch Print report. Options are:
|
Transmit Change Orders |
Select to enable the PO Dispatch/Print process to transmit change orders to vendors for this business unit. If you do not select this check box, the system may not generate the output file at all. Either way, after the PO Dispatch/Print process runs successfully, the status of the changed purchase order is set to D (dispatched). You can override this value for individual vendor locations on the Procurement Options page. Note. This check box applies only to change orders. Initial dispatches of purchase orders are unaffected by this value. |
See Also
Dispatching and Printing Purchase Orders
Running the RFQ Dispatch/Print Process
Running the RTV Dispatch/Print Process
Running the Purchase Order Contracts Process
Access the Freight Option page (click the Freight Option link on the Purchasing Options page).
Arbitration Plan ID |
Select the freight and transportation arbitration plan for this business unit. |
Freight Charge Method |
Select the freight charge method for this business unit. Although the method applies to the entire purchase order, it is calculated on a line-by-line basis. |
See Also
Setting Up Transportation Lead Times and Internal Freight Charges
Access the POA Settings page (click the POA Settings link on the Purchasing Options page).
POA Settings
POA Required |
Select this check box if a POA is required by a supplier after a purchase order is dispatched. When you select this check box the Alert worklist if no POA received fields become available. |
Alert worklist if no POA received (alert worklist if no purchase order acknowledgement received) |
Enter the number of days after purchase order dispatch or before purchase order delivery to send a notification to the buyer's worklist if no POA is received by the supplier for a purchase order in those time frames. Note. Enter 999 in these fields if you do not want to generate a worklist entry for the buyer. |
POA required with change order (purchase order acknowledgement required with change order) |
Select this check box if a POA is required when a change order is created. |
POA Tolerance Settings
Auto-Approve POA if changes against PO do not exceed (auto-approve purchase order acknowledgement if changes against the purchase order do not exceed) |
Enter the tolerance settings for the system to be able to automatically approve a POA for the buyer. |
days before Schedule Due Date and days after Schedule Due Date |
Enter the number of days early or late to enable auto-approving a POA for the purchase order schedule. If the supplier changes a date that falls outside the schedule-days-early or schedule-days-late tolerances, then the buyer is required to review the change. |
percent under Schedule Quantity and percent over Schedule Quantity |
Enter the percentage under or over the purchase order schedule quantity to enable autoapproving a POA for a purchase order. If the supplier changes the quantity for any schedule above or below this percentage then the buyer will be required to review the change. |
percent below PO Unit Price (percent below purchase order unit price)and percent above PO Unit Price (percent below purchase order unit price) |
Enter the percentage below or above the purchase order unit price to enable autoapproving a POA for a purchase order. |
Note. Enter 999 in these tolerance setting fields if you do not want the system to be able to automatically approve a POA within the tolerance settings.
POA Settings Hierarchy
You can define POA settings at the purchasing business unit level and at the vendor and location level. You define the purchasing business unit POA settings using the POA Settings page in the Processing Options component. You define the vendor and location POA settings using the Procurement Options page in the Vendor component. You can override the purchasing business unit POA settings by defining vendor and location POA settings.
During the processing of a POA, the system first retrieves the POA settings at the vendor and location level that are associated with the purchase order. If the POA settings are not defined at that level, then the system retrieves the POA settings at the purchasing business unit level.
See Specifying High-Level Procurement Processing Options.
Access the Service VAT Treatment Defaults Setup page (click the VAT Service Treatment Setup link on the Purchasing Options page).
You can insert rows for the supplier's location country or state. You can also delete any existing rows.
Return to Purchasing Options |
Click to return to the Purchasing Options component. |
Copy Values to New Rows |
If you are inserting a row for a VAT driver key, select this check box to copy all the VAT defaults from the previous row to the new row. Otherwise, all VAT default fields for the new row will be blank. |
Copy Defaults From |
Click to access the Copy Service VAT Treatment Defaults From page, which you can use to copy the VAT defaults from another key combination for the same VAT driver. |
Seller Location Country |
Select the supplier's location country. |
Seller Location State |
As applicable, enter the supplier's location state. |
VAT Service Type (value-added service type) |
Set the type of service for the applicable VAT drivers. Values are: Freight Transport Other |
VAT Place of Supply (value-added tax place of supply) |
For the applicable VAT drivers, select the usual place of supply (the place where VAT liability occurs). Values are: Buyer's Countries Supplier's Countries Where Physically Performed |
See Also
Access the Procurement Change Reason Codes page (click the Change Reason Codes link on the Purchasing Options page).
Reason Type |
Select the reason type for your default reason code. Your selection is limited to the following reason types:
|
Reason Code Required |
Select to require that a user enter a reason code when creating a change request, change order, or rejecting a change. Reason codes help identify why a user made a change or why a buyer rejected the change. |
Comments Required |
Select to require that a user enter a comment when creating a change request, change order, or rejecting a change. Comments enable the user to give a detailed explanation of their action. |
Default Reason Code |
Enter the reason code that should default to the transaction. The available reason codes are limited by the reason type on this row. Only one default reason code can be entered per reason type. |
To prepare the PeopleSoft Purchasing VAT environment:
Link the PeopleSoft Purchasing business unit to a VAT entity using the PeopleSoft General Ledger business unit.
This enables the PeopleSoft Purchasing business unit to record VAT information on purchase orders.
Define VAT defaults and other VAT-related information for all VAT drivers in the PeopleSoft Purchasing defaulting hierarchy, as required.
To link a PeopleSoft Purchasing business unit to a VAT entity:
Access the Purchasing Definition - Business Unit Definition page.
Select the PS/GL (PeopleSoft General Ledger) check box.
Select the PeopleSoft General Ledger business unit in the GL Unit (general ledger unit) field.
The connection between PeopleSoft Purchasing business units and VAT entities is indirect. You must link the PeopleSoft Purchasing business unit to a PeopleSoft General Ledger business unit that is already linked to a VAT entity. Define links between PeopleSoft General Ledger business units and VAT entities on the VAT Entity - Identification page.
After linking PeopleSoft Purchasing business units to PeopleSoft General Ledger units, set the VAT processing options for those business units. VAT processing options are defined by setID, and the options are applied to all business units within the setID.
To define VAT defaults, VAT service treatment defaults, and other VAT-related information for the PeopleSoft Purchasing options VAT driver:
Access the Purchasing Options page (Set Up Financials/Supply Chain, Business Unit Related, Purchasing, Purchasing Options).
Specify a value for physical nature.
Click the VAT Defaults link to access the VAT Defaults Setup page for the purchase order options VAT driver.
Click the VAT Service Treatment Setup link to access the Service VAT Treatment Default setup page for the purchase order options VAT driver.
To define VAT defaults and other VAT-related information for the PeopleSoft Purchasing (business unit) definition VAT driver:
Access the Purchasing Definition - Business Unit Options page.
Select the Calculate VAT on Req (calculate value-added tax on requisitions) check box if you want to process and calculate VAT on requisitions and pass the requisition VAT information to other procurement transactions further along the supply chain.
Access the Purchasing Definition - Business Unit Definition page.
Click the VAT Defaults link to access the VAT Defaults Setup page for the PeopleSoft Purchasing business unit VAT driver.
To define VAT defaults, service VAT treatment defaults, and other VAT-related information for the vendor and vendor location VAT drivers:
Access the Vendor Identifying Information page.
Select: Vendors, Vendor Information, Add Update, Identifying Information.
Select the VAT Registration check box and access the VAT Registration Details page.
Create a row, entering the VAT registration number, if available, for all VAT countries in which this vendor conducts business and all countries for which the vendor reports VAT.
Click the VAT Defaults link to access the VAT Defaults Setup page, where you can define VAT defaults, such as VAT codes, transaction types, declaration points, rounding rule, and VAT use type for vendors.
Click the VAT Service Treatment Setup link to access the Service VAT Treatment Defaults Setup page, where you can define service-related VAT defaults for vendors.
Access the Location page.
For each location, expand the VAT section to define the usual physical nature of items purchased from this location (the location where services provided by this vendor location are usually performed) and to specify whether this vendor has been selected for suspension of VAT on purchases.
For each location, click the VAT Defaults link to access the VAT Defaults Setup page, where you can define VAT defaults (such as VAT codes, transaction types, declaration points, rounding rule, and VAT use type) for vendor locations.
For each location, click the VAT Service Treatment Setup link to access the Service VAT Treatment Defaults Setup page, where you can define service-related VAT defaults for vendor locations.
To define VAT defaults at the PeopleSoft Purchasing item level:
Access the Purchasing Attributes page.
Select: Items, Define Items and Attributes, Purchasing Attributes.
Click the VAT Default link to access the VAT Defaults Setup page.
Click the VAT Service Treatment Setup link to access the Service VAT Treatment Defaults setup page.
To define a default VAT use type for the VAT driver for item business units in PeopleSoft Purchasing:
Access the Purchasing Business Unit Attributes page.
Select: Items, Define Items and Attributes, Purchasing Attributes.
Click the VAT Default link to access the VAT Defaults Setup page.
You can also define VAT defaults and service VAT treatment defaults for all VAT drivers in the PeopleSoft Purchasing hierarchy by navigating directly to the VAT Defaults and Service VAT Treatment Defaults components.
See Also
Establishing PeopleSoft Purchasing Business Units
Defining VAT Service Treatment Setup
Establishing Buyers and Defaults