56 Overview to System Setup

This chapter contains these topics:

Section 56.1, "Objectives,"
Section 56.2, "Overview."

56.1 Objectives

To understand how to set up the features and functions that allow you to process purchase order information

56.2 Overview

Before you use the Procurement system, you must define set up information. This information directs the system to accommodate your specific business needs. For example, you must define the purchasing cycle through which the system processes each order type that you use (requisitions, blanket orders, purchase orders).

Complete the following tasks:

Set up order line types
Set up order activity rules
Set up constants
Set up automatic accounting instructions
Create tolerance rules
Set up purchase order hold information
Set up landed costs
Set up non-stock items
Set up templates for purchase orders

The following describes information that you set up for the Procurement system:

Information	Description
Order line types	You must define codes that determine how the system processes a detail line on an order.
Order activity rules	You must establish the sequence of steps (purchasing cycle) through which the system processes each order.
Constants	You must define constants that provide the following types of default information: Branch/plant constants control day-to-day transactions within a branch/plant. Item availability constants define how the system calculates the quantity of items available at a branch/plant. System constants provide default information that applies throughout the system. Batch control constants determine whether an application requires management approval and batch control.
Automatic accounting instructions (AAIs)	You must set up AAIs to determine the general ledger accounts for which the system creates journal entries for purchasing transactions.
Tolerance rules	You can create tolerance rules to specify the number or percentage by which the quantity, unit cost, and extended amount can change on a detail line.
Order hold information	You can set up information that the system uses to place purchase orders on hold.
Landed costs	You can set up landed costs to specify costs that exceed the purchase price of an item, such as delivery charges, broker fees, and so forth.
Non-stock items	You can set up information for items that you do not account for as part of your inventory.
Order templates	You can set up templates for use during purchase order entry. Templates contain items that you frequently order from a supplier.

The following describes information that you set up in other systems, including Inventory Management and General Accounting:

Information	Description
Messages	You can pre-define messages to attach to purchase orders.
Default location and printers	You can define default information for a certain user or workstation terminal, including a branch/plant, an approval route, and a printer output queue.
Next numbers	You can use the next numbers facility to automatically assign the next available number to document types and address book numbers.
Tax processing	You must set up tax processing information for your system. See the JD Edwards World Tax Reference Guide for more information.
User defined codes	You can set up user defined codes to customize each system in your environment.
Item cross-references	You can define item cross-reference numbers to link your internal item numbers to alternate items numbers, such as those maintained by your suppliers.