Business Unit Definition

BUS_UNIT_TBL_A1

Set Up Financials/Supply Chain, Business United Related, Sourcing, Business Unit Definition

Define the parameters of the business unit.

Either click the Add button after adding a new value, or select a business unit by number from the list of existing values.

Default Dates

A1_DEFLT_DATE

Set Up Financials/Supply Chain, Business United Related, Sourcing, Business Unit Definition

Set the dates and times for previewing, starting, and ending an event.

Unit and Short Description

Enter the name and description for the new Strategic Sourcing business unit.

Default SetID

(Optional) Select a value for this business unit.

Create BU

Click this button after you enter all the field information to save the data and create the business unit.

If the business unit is unique, a new row is inserted into the setID table.

Location Code

Enter default geographic locations for events within this business unit.

Billing Location

Enter mailing addresses for billings that are to be used for this business unit. This applies only to sell events.

AM Unit (asset management unit)

Enter the Asset Management business unit that is to be used for sell events within this business unit. Selected assets are based on the asset management business unit that is associated with the event business unit.

Bill Source

Enter the external and online systems from which PeopleSoft Billing receives bills. When you integrate with PeopleSoft Asset Management and sell an asset by using a PeopleSoft Strategic Sourcing sell event, the Strategic Sourcing system sends the asset sale information to PeopleSoft Asset Management. PeopleSoft Asset Management then sends that information to PeopleSoft Billing to create the bill. The PeopleSoft Billing system uses the bill source to identify that the bill originated from PeopleSoft Strategic Sourcing. The system displays this field only if you have PeopleSoft Asset Management installed.

Dispatch Method

Enter the default means by which bidders are notified: Email, Print, or Fax.

Currency Code

Enter the default currency that is to be used for events that are within this business unit.

Rate Type

Enter the default rate type that is to be used for events that are within this business unit.

Allow Multicurrency Events

Select to allow events to be created in currencies other than the default.

Log History of Event Changes

Select to indicate that you want to track the event change dates and times, and the user making changes to a sourcing event.

Require New Version for Edits

Select to indicate that a new event version must be created when an event is changed.

Important! If you select this check box, you must create a new version every time you modify an event.

Permit Award to Previous Round

Select to indicate whether a previous event round can be awarded. If this option is not selected, you can award bids only from the current round.

Allow Vendor Creation at Award

Select to allow vendors to be created from bidders at the time of award.

When awarding events to vendors converted from bidders, the user must also have the appropriate access on the Procurement - Vendor Processing Authority page to enter and approve vendors. To award purchase orders or contracts, users must have access on the User Preferences - Procurement page to create contracts and purchase orders.

See Defining Procurement User Preferences.

Create PDF on Event Post

Select to create a PDF version of the sourcing event. If this option is not selected, PDF creation is suppressed.

Allow Bidder XML Downloads

Select to enable bidders to download events to an XML file. If this option is not selected, a PDF version of the sourcing event is created; however, an XML version is not created when the events are posted.

Factor Event Score Into

Select to indicate that you want the system to factor the header score into the total score for the event or the individual line score.

If Total Score is selected, the header score is factored into the total score of the event, which is calculated by adding the weighted line scores plus the weighted header score. Select this option if you intend to award the entire event to one bidder.

If Line Score is selected, a header score bid factor will automatically be added to each line within an event. The line score will be calculated by adding the weighted scores of each line bid factor plus the weighted header score. Select this option if you intend to award different lines within the event to different bidders, or if you intend to use the optimization engine to recommend sourcing awards. The optimization engine uses the bidders line scores, not total scores, to determine an ideal award allocation.

Header Weighting

Enter a default weighting to determine how the system weighs the event header score in relation to the total or line score.

For example, if the header score is factored into the total score and you set the default event header weighting to 20 percent, then create an event with three lines. Line 1 is weighted 50 percent, line 2 is weighted 20 percent, and line 3 is weighted 10 percent. The total weighting of the lines is 80 percent plus the defaulted weighting of the header (20 percent), totaling 100 percent.

For example, if the header score is factored into the line score and you set the default event header weighting to 20 percent, then the sum of the remaining bid factors for each line must total 80 percent. For example, you could have the price bid factor with a weighting of 50 percent and warranty with a weighting of 30 percent. The remaining 20 percent would be the header score bid factor, which is automatically added to each line.

Bid Quantity Rule

Select the bid quantity rule that will be the default value for all lines in the event. You can change this during event creation:

See Creating Events.

• Allow Extra Quantity to be Bid: Bidders can bid more than the requested quantity up to the specified maximum bid quantity.

• Bid Up to the Maximum Quantity: Bidders can bid up to the specified maximum or requested line quantity.

• Quantity Not Applicable: Bidders are not required to enter a bid quantity—only their bid price for lines that are marked with this option.

  If this value is selected, the requested line quantity and bid quantity are automatically set to 1.

  This option is most commonly used for service-type lines that do not require an actual quantity to be bid.

  When a line using this option is awarded to a purchase order or contract, the line is noted as Amount Only on the awarded purchase order or contract.

  See Analyzing Bids and Awarding Events.

• Requested Quantity Required: Bidders must bid the exact line requested quantity.

  If this value is selected, the bid quantity is automatically set to the line requested quantity on the bid response pages.

Bid Required on All Lines

Select to indicate that the bidders must submit bids for all lines in the event.

Start Price Rule

Select a value to indicate the rule that the system is using as a basis for pricing:

• Display and Also Must Beat: The line start price is displayed to bidders and bidders are required to beat the start price.

• Display but Must Not Beat: The line start price is displayed to bidders, but bidders are not required to beat the start price.

• Do Not Display: The start price is hidden from the bidders.

Do Not Use Best Bids on New Rounds

Select to indicate that new rounds should not be created using best bids when the bids are countered. If you select this option, then bidders will not be able to accept the counter offer on the Create Bid Response page; bidders will be forced to rebid. In this scenario, bidders will still be able to either counter or withdraw the bid.

This setting will default to the Event Details page based on the business unit. However, you can change the setting at the event level on the Event Settings and Options page.

Display Bid Factor Best/Worst and Display Bid Factor Ideal Value

Select to show the best and worst values for the bid factor or the ideal value for the bid factor on the Create Bid Response page. If you deselect these options, then bidders will not be able to see the best and worst values or the ideal value for a bid factor on the Create Bid Response page.

These settings will default to the Event Details page based on the business unit. However, you can change the settings at the event level on the Event Settings and Options page.

Round/Version Display

Select a value to indicate how the rounds should appear to bidders:

• Display Round: The system displays the round number to bidders.

• Display Round and Version: The system displays the round and version number to bidders.

• Do Not Display: The system does not display any round or version information.

Multiple Bids Allowed

Select to allow multiple bids on RFx sourcing events. Auction events inherently allow multiple bids by the same bidder on the same event.

Allow Edit of Posted Bids

Select to enable bidders to edit their posted bids for RFx and RFI events. Bidders cannot edit their posted bids on auction events.

Sealed Event

Select to indicate that the event is sealed, which means that the event originator cannot view either bids or bid history until the event has ended. This option is available only for RFx events.

Display Bid Factor Weightings

Select to display to bidders the weightings associated with bid factors for RFx and RFI events. Bid factor weightings are always displayed to bidders on auction events.

Allow Proxy Bidding

Select to enable bidders to use automatic proxy bidding.

See Entering Bids Using Automatic Proxy Bidding.

Rank Options

Select a value:

• Display Rank Only

• Display Rank/Total # of Bids (display rank/total number of bids)

• Do Not Rank

Note. If you selected the Allow Proxy Bidding check box, this field is not available.

Event Will Be

Select a value to indicate the basis on which the event will be awarded:

• Price Based: Price is the only bid factor allowed on the event.

  Header bid factors cannot be added nor any other line bid factors. Bidders will compete based on price.

• Score Based: Bidders will compete based on the score of their bid factor responses.

Note. If you selected the Allow Proxy Bidding check box, Price Based is automatically selected because proxy auctions are based on price.

Bidders Must Beat

Select a value:

• Own Bid: Bidders are required to beat their last posted bid, not the current winning bid.

• Winning Bid: Bidders must beat the current winning bid.

Note. If you selected the Allow Proxy Bidding check box, Winning Bid is selected.

Display Winning Bid to Bidders

Select this option if you want the winning bid to be displayed to all bidders.

Note. If you selected the Allow Proxy Bidding check box, this field is not available.

Also if you selected that bidders must beat the winning bid, this option must be selected.

Bid History Display

Select a value to indicate how to display the bid history to bidders:

• Display and Show Identity: The system displays the bid history including the identity of all bidders.

• Display but Hide Identity: The system displays the bid history but does not display the identity of the bidders.

• Do Not Display: The system does not display any bid history.

Bidders Compete At

Select either Event Level or Line Level.

If Event Level is selected, bidders compete based on best total price or best total score. In some cases, a bidder can post a subsequent bid that has a worse score or price on one or more lines as long as the total score or price is better than the bidder's previous bid or the current winning bid.

If Line Level is selected, bidders compete based on the best line price or line score.

Note. If you selected the Allow Proxy Bidding check box, this field is not available.

Respond to all Bid Factors

Select to indicate that bidders must respond to all bid factors associated with sourcing events.

Score RFI Event (score request for information event)

Select to indicate that you want the system to calculate a score for RFI responses.

Allow Line Groups

Select to allow line groups in events.

Allow Constraints

Select to allow constraints in events.

Allow Price Breaks

Select to allow price breaks in events.

Allow Price Components

Select to allow price components in request for quote events.

Allow Cost Contribution

Select to allow cost contribution for auction events.

External PO Integration (external purchase order integration)

Select to enable awarded events to be published to external purchasing systems. Values are:

• EnterpriseOne Integration

• No External Integration

• PeopleSoft 8.4 Integration

The system automatically publishes the purchase order when you click the Post Award button on the Award Details page. With this selected, you can't award buy events to PeopleSoft Purchasing.

Important! If you select this check box, you can't award buy events to PeopleSoft Purchasing; you can award events only to an external purchasing system.

Integration Node

This field appears when you select an external PO integration. Select the integration node for the external PO integration. All events created under the business unit are posted to the same external system.

Post Events to Third Party

Select to allow events to be posted to third-party systems.

Buy Events

Select to allow buy events to be posted to third-party systems.

Sell Events

Select to allow sell events to be posted to third-party systems.

RFI Events

Select to allow RFI events to be posted to third-party systems.

Integration Node

Select the integration node for event integration.

Buy Event Types

If you allow buy events to be posted to third-party systems, select the type of buy events that can be posted to third-party systems.

• Auction

• Both RFX and Auction

• RFX

Sell Event Types

If you allow sell events to be posted to third-party systems, select the type of sell events that can be posted to third-party systems.

• Auction

• Both RFX and Auction

• RFX

Award Notification based upon

Select an option for sending mail notification to the vendor and nonawarded vendors upon posting of the award. Options include:

• Days: Select to send notification based on a date. If you select this option, enter a numeric value in the Notify After Days field.

• Full Award: Select to send notification when the event is fully awarded.

• Immediate: Select to send notification immediately upon posting of the award.

Increment

Enter the unit of time in days, hours, or minutes that you want to use to calculate the period.

Start Time

Enter when bidders can post their bids on the items offered. The start date of the event is relative to the create date; that is, X days, hours, or minutes after the create date.

Preview Time

(Optional) Enter the time when prospective bidders can review the items that are offered and enter their responses to bid factors, but not post the bid. The time for preview is relative to the start time, that is, X days, hours, or minutes before the start time.

End Time

Enter the time when bidders can no longer bid; the event closes pending award. The end of the event is relative to the start time, that is, X days, hours, or minutes after the start time.