Defining Purchasing Item Categories

To define purchasing item categories, use the Item Categories component (ITEM_CATEGORIES).

This section provides an overview of item categories and discusses how to:

Define item categories.
Update catalog trees.
Define item category control options.
Define supplier sourcing priorities for item categories.

Pages Used to Define Purchasing Item Categories

Page Name	Definition Name	Navigation	Usage
Item Categories - Category Definition	CATEGORY_TBL	select Items, then select Define Controls, then select Item Categories, then select Category Definition	Define item categories.
Update Catalog Tree	CAT_PNLS_CATLG_SEC	Change item categories or add a new item category on the Item Categories - Category Definition page and save. Click the Yes button when asked if you want to update catalogs with the category changes.	Select the catalog tree to update with new category code information.
BU Specific Attributes (business unit specific attributes)	ITM_CAT_BU_SEC	Click the BU Attributes (business unit attributes) link on the Item Categories - Category Definition page.	Assign a buyer to this category for each business unit. You may want to do this if you order by description and want a default buyer for this category by business unit. This setup is optional. The system uses the values set for the buyer at the item category level for all business units that are not specified here.
View Catalog Hierarchy	CAT_PARENTAGE_SEC	Click the Hierarchy link on the Item Categories - Category Definition page.	View information about where a category resides in the entire catalog tree hierarchy.
VAT Defaults Setup (value-added tax defaults setup)	VAT_DEFAULTS_DTL	Click the VAT Default link on the Item Categories - Category Definition page.	Define value-added tax (VAT) defaults.
Service VAT Treatment Defaults Setup (service value-added tax treatment defaults setup)	VAT_DEFAULTS_DTL	Click the VAT Service Treatment Setup link on the Item Categories - Category Definition page.	Define service VAT treatment defaults.
Item Categories - Category Definition 2	CATEGORY_TBL2	select Items, then select Define Controls, then select Item Categories, then select Category Definition 2	Define the matching and receiving controls, sourcing controls, and miscellaneous controls and options for the category. Also use to set price tolerance defaults for items to trigger workflow exception notifications. PeopleSoft Purchasing and PeopleSoft Payables use matching controls to match receipts, purchase orders, and vouchers. Receiving controls specify how receiving users process items assigned to this category. These values become a part of the item default hierarchy and can be supplied by default to purchase order lines where this category is specified.
Supplier Sourcing Priorities	ITM_CAT_VND_PR_SEC	Click the select Priorities link on the Item Categories - Category Definition 2 page.	Set the supplier priority and split sourcing allocation percentage for vendors for this category

Understanding Item Categories

If your installation includes PeopleSoft Purchasing, you must create categories for the items. You will be required to assign new items to a category on the Define Item - General: Common link. Category information helps reduce redundant data entry during both item setup and requisition and purchase order processing. The purchasing attributes of an item category are assigned as defaults to any item in that category.

Item categories can provide transaction information for requisitions, requests for quotes, contracts, and purchase orders. Item categories also serve as the organizational unit for item catalogs. In fact, item catalogs are a collection of item categories. Each item added to a category is automatically added to each catalog that contains that category.

For each category that you create, you can define purchasing attributes, such as general ledger account, primary buyer, lead time, price tolerances, and so forth. For example, you might create a category for outdoor equipment with a set of default purchasing attributes that apply to most of the outdoor equipment purchases. During item definition, every item that you assign to the outdoor equipment category receives the attributes of that category.

Note: If you don't order by item ID, category attributes will be supplied by default to the item lines of requisitions, contracts, and purchase orders on which you specify the category codes. If you do order by item ID, the attributes are supplied by default from the Item tables rather than the Category tables.

Item Categories - Category Definition Page

Use the Item Categories - Category Definition page (CATEGORY_TBL) to define the matching and receiving controls, sourcing controls, and miscellaneous controls and options for the category.

Navigation

select Items, then select Define Controls, then select Item Categories, then select Category Definition

Image: Category Definition page

This example illustrates the fields and controls on the Category Definition page. You can find definitions for the fields and controls later on this page.

Market Code

Select the coding scheme that a category code is using. Values are UN/SPSC (Universal Standard Products and Services Classification) (02) and User Def. (user-defined) (01).

Effective Date

Select a date for which you want to make the purchasing item category effective for use.

Status

Select a category status. Changing a category status from Active to Inactive means that you can no longer assign items to the category. This status change does not affect the existing and future PeopleSoft Purchasing transactions involving items in the inactivated category. For example, setting a category status to Inactive has no effect on orders that you have in progress that contain items tied to the newly inactivated category. You can also continue to add these items to the PeopleSoft Purchasing transactions using the usual methods, such as entering an item ID directly on the online page or using the Order By Catalog page or Item Search Criteria page.

Lead Time Days

Enter the number of lead-time days required for items in this category. This value is used in calculating the due dates for purchase order lines when the category you're defining is specified for a line on which no item ID is specified, the purchase order has no default due date, or no due date is specified on the line schedules.

Account

Select a valid account number to identify the general ledger account to be associated with the items in this category. This account number is used on transactions when no item ID is specified at the line level of a PeopleSoft Purchasing purchase order and no default account is specified for the transaction.

Alt Acct(alternate account)

Select an alternate account number to identify the general ledger account to be associated with the items in this category. This field is available if you enable the Alternate Account option for the organization and for the general ledger business unit.

Asset Profile ID

Select an asset profile ID for the category. Asset profile IDs are transferred to PeopleSoft Asset Management when PeopleSoft Purchasing receives an item that specifies both an asset profile and a PeopleSoft Asset Management business unit. When you define a purchase order or requisition line using an asset category without specifying an item, the asset profile of that category becomes the default. Asset profile IDs are set up on the Asset Profile page.

Usage Code

Enter an ultimate use code to be supplied by default on purchasing transactions whenever this category is referenced on an ad hoc (order by description) line.

In most cases, sales tax is computed as a use tax based on the tax code that is applicable to the ship to or usage destination. However, how merchandise is ultimately used may also result in a different tax rate within the same ship to or usage destination.

Physical Nature

Indicate whether the object is a physical good or service. Values are Goods and Services.

Where Performed

Select the location where the service is most often performed:

Buyer's: Select if the service is physically performed at the buyer location.

Ship From: Select if the service is physically performed at the ship from location.

Ship To: Select if the service is physically performed at the ship to location

Supplier's: Select if the service is physically performed at the supplier location.

Note: This option is available only when the physical nature is service.

Update Catalog Tree Page

Use the Update Catalog Tree page (CAT_PNLS_CATLG_SEC) to select the catalog tree to update with new category code information.

Navigation

Change item categories or add a new item category on the Item Categories - Category Definition page and save.

Click the Yes button when asked if you want to update catalogs with the category changes.

Parent Category

When the market code for the category is UN/SPSC (02), the Parent Category field is unavailable for entry because the system generates and maintains UNSPSC ancestor nodes automatically. You can select multiple catalog trees for updating.

When the market code is User Def. (01), you must select a Parent Category value. Then click the Catalog Refresh button to retrieve the catalog trees to which the parent category belongs. You can select only one catalog tree for updating.

Note: The category being modified is not available as a parent category when you are updating the catalog tree.

Item Categories - Category Definition 2 Page

Use the Item Categories - Category Definition 2 page (CATEGORY_TBL2) to define the matching and receiving controls, sourcing controls, and miscellaneous controls and options for the category.

Navigation

select Items, then select Define Controls, then select Item Categories, then select Category Definition 2

Sourcing Controls

Accumulate Level

If you select Cumulative Split in the Sourcing Method field, this field becomes available for entry. Select Run to accumulate the percentage for the supplier based on each run of the PO Calculations process (PO_POCALC), or select Schedule to accumulate based on each schedule.

Cumulative Sourcing

In the Cumulative Sourcing group box, set the options for the cumulative sourcing method. The fields in this group box become available if you select Cumulative in the Sourcing Method field.

Year to Start

Designates the year in which you want to start maintaining supplier history. You cannot specify a year in the future. Cumulative sourcing must be based on history and cannot occur in the future.

Month to Start

Enter the number of the month in which you want to start maintaining supplier history. Changing the value in this field triggers recalculation of historical quantities and amounts. History is always maintained from the first day of the start month to the first day of the end month.

Number of Months

Enter the number of months for which you want to keep supplier history. Changing the value in this field triggers recalculation of historical quantities and amounts.

Start Date

Displays the start day, which is calculated based on the values that you define for the Year to Start, Month to Start, and Number of Months fields. History is always maintained from the first day of the start month to the first day of the end month.

End Date

Displays the date on which supplier history is to be refreshed. This date is calculated based on the values defined for the Year to Start and Month to Start fields, plus the value in the Number of Months field. So if Month to Start is 1 and Number of Months is 3, the end date will be 04/01. History is refreshed by the first run of the Cumulative Sourcing Update process (PO_POHISTUD) as soon as the current date is greater than or equal to the end date.

Total Category Amount

Displays the total merchandise amount for all vendors for this category for the historical period, in the category currency.

Misc. Controls and Options

Close PO Under Percent Tol (close purchase order under percent tolerance)

Enter an acceptable percentage of the total quantity or amount that can be outstanding while still enabling the purchase order to be closed. If the quantity or amount not yet received is less than or equal to the value entered here, the Close Purchase Orders process (PO_PORECON) will treat the purchase order as fully received.

RFQ Required (request for quote required)

Select if the item must go through the RFQ cycle before it can be included on a requisition or purchase order.

Supplier Sourcing Priorities Page

Use the Supplier Sourcing Priorities page (ITM_CAT_VND_PR_SEC) to .

Navigation

Click the select Priorities link on the Item Categories - Category Definition 2 page.

Priority

Enter a priority rank for the supplier. When the PO Calculations process selects a supplier for the item, it uses the priority ranking with the lowest number (1) as the first choice. When you add another supplier, the next priority ranking is automatically assigned.

Allocation Percentage

If you selected Sched Split or Cumulative Split in the Sourcing Method field on the Item Categories - Category Definition 2 page, enter the allocation percentage for the selected supplier.

Merchandise Amt (merchandise amount)

Displays the total merchandise amount for this supplier for this category for the historical period, along with the category currency.