1 Introduction to JD Edwards EnterpriseOne Procurement Management

This chapter contains the following topics:

1.1 JD Edwards EnterpriseOne Procurement Management Overview

Procurement is the process of obtaining products and services from suppliers. It includes decisions about how much and when to purchase goods and services, the actual purchasing of goods and services, and the process of receiving the requested goods or services. The purchasing cycle ensures that the appropriate quantity and quality of equipment, material, supplies, or services are acquired at the best price and from the most appropriate source. Procurement involves and affects more departments than just the purchasing department. An integrated procurement system provides the purchasing professional with links to information across all of an organization's functions and departments. Some of the links include activities and information, including receiving transactions, order revision data, supplier profiles, accounts payable status, special order processing, and the tracking of incoming purchases through receipt routing.

1.2 JD Edwards EnterpriseOne Procurement Management Integrations

The JD Edwards EnterpriseOne Procurement system from Oracle works with other JD Edwards EnterpriseOne systems to ensure that all information is fully integrated. We discuss integration considerations in the implementation chapters in this implementation guide. Supplemental information about third-party application integrations is located on the My Oracle Support website.

1.2.1 JD Edwards EnterpriseOne General Ledger and JD Edwards EnterpriseOne Accounts Payable

The JD Edwards EnterpriseOne Procurement system integrates with the JD Edwards EnterpriseOne General Ledger system from Oracle and the JD Edwards EnterpriseOne Accounts Payable system from Oracle. With the use of automatic accounting instructions (AAIs) and user-input account numbers, the system relays pertinent transaction information to the accounting systems.

The JD Edwards EnterpriseOne Procurement system retrieves supplier payment information, tax information, and so forth from the JD Edwards EnterpriseOne Accounts Payable system.

1.2.2 JD Edwards EnterpriseOne Address Book

The JD Edwards EnterpriseOne Procurement system coordinates with the JD Edwards EnterpriseOne Address Book system from Oracle to retrieve:

  • Supplier address information.

  • Ship-to address information.

  • Warehouse address information.

  • User identification information.

1.2.3 JD Edwards EnterpriseOne Manufacturing and Supply Chain Management

The JD Edwards EnterpriseOne Procurement system can interact with several JD Edwards EnterpriseOne manufacturing systems from Oracle to help process parts availability, work orders, forecasting and planning, product costing, and so forth.

1.2.4 Logistics

The company might integrate the JD Edwards EnterpriseOne Procurement system with the JD Edwards EnterpriseOne Inventory Management system. This integration involves the validation and exchange of information that pertains to inventory items. The JD Edwards EnterpriseOne Procurement system integrates with other JD Edwards EnterpriseOne logistics systems from Oracle:

  • JD Edwards EnterpriseOne Warehouse Management.

  • JD Edwards EnterpriseOne Sales Order Management.

  • JD Edwards EnterpriseOne Requisition Self Service.

    Requisitions and purchase orders can be sent from Oracle's JD Edwards EnterpriseOne Requisition Self Service to JD Edwards EnterpriseOne Procurement.

  • JD Edwards EnterpriseOne Forecasting.

  • JD Edwards EnterpriseOne Requirements Planning.

  • JD Edwards EnterpriseOne Advanced Pricing.

1.2.5 JD Edwards EnterpriseOne Job Costing

The JD Edwards EnterpriseOne Procurement system can also interact with the JD Edwards EnterpriseOne Job Costing system from Oracle to view subcontract commitments. Using job status inquiry, you can view the job and project commitment details on an account-by-account basis.

1.2.6 JD Edwards EnterpriseOne Electronic Data Interchange

Electronic data interchange (EDI) is the computer-to-computer exchange of business transactions, such as purchase orders, invoices, and shipping notices, in a standard format.

The JD Edwards EnterpriseOne EDI system from Oracle consists of system 47, which is the application interface containing interface files, tables, and programs. System 47 works with third-party translation software that translates EDI standard data into a flat file format so that the JD Edwards EnterpriseOne application software can manage the data. When you receive documents, the third-party translation software:

  • Retrieves the data via network communications.

  • Translates the data from EDI standard format to JD Edwards EnterpriseOne application table format.

  • Moves the translated data into the JD Edwards EnterpriseOne EDI flat files.

The inbound conversion program moves the translated data into the JD Edwards EnterpriseOne EDI interface tables. The JD Edwards EnterpriseOne EDI system then moves the data into the appropriate application tables. When you send documents, the system performs the procedures in reverse order.

This table lists the EDI documents currently supported for the JD Edwards EnterpriseOne Procurement system. This table includes corresponding codes for ANSI and EDIFACT, which are EDI standard cross-industry terms:

TRANSACTION ANSI EDIFACT Inbound To Outbound From
Purchase Order 850 ORDERS Sales Procurement
Purchase Order Acknowledgement 855 ORDRSP Procurement Sales
Invoice 810 INVOIC Accounts Payable, Procurement Sales
Receiving Advice 861 RECADV Procurement, Sales Procurement
Purchase Order Change 860 ORDCHG Sales Procurement
Purchase Order Response Message 865 ORDRSP Procurement Sales

1.3 JD Edwards EnterpriseOne Procurement Management Implementation

This section provides an overview of the steps that are required to implement the JD Edwards EnterpriseOne Procurement system.

In the planning phase of the implementation, take advantage of all JD Edwards EnterpriseOne sources of information, including the installation guides and troubleshooting information.

When determining which electronic software updates (ESUs) to install for JD Edwards EnterpriseOne Procurement, use the EnterpriseOne and World Change Assistant. EnterpriseOne and World Change Assistant, a Java-based tool, reduces the time required to search and download ESUs by 75 percent or more and enables you to install multiple ESUs at one time.

See JD Edwards EnterpriseOne Tools Software Updates Guide.

For information about the Oracle Business Accelerator solution for implementation of JD Edwards EnterpriseOne Procurement, review the documentation available.

See http://docs.oracle.com/cd/E24705_01/index.htm

1.3.1 Global Implementation Steps

The suggested global implementation steps for the JD Edwards EnterpriseOne Procurement system:

  1. Set up global user-defined codes (UDCs).

    See "Working with User Defined Codes" in the JD Edwards EnterpriseOne Tools System Administration Guide.

  2. Set up companies, fiscal date patterns, and business units.

    See "Setting Up Organizations" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implemenation Guide.

  3. Set up next numbers.

    See "Setting Up Next Numbers" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implemenation Guide.

  4. Set up accounts and the chart of accounts.

    See "Creating the Chart of Accounts" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implemenation Guide.

  5. Set up General Accounting constants.

    See "Setting Up Constants for General Accounting" in the JD Edwards EnterpriseOne Applications General Accounting Implementation Guide.

  6. Set up multicurrency processing, including currency codes and exchange rates.

    See "Setting Up General Accounting for Multicurrency Processing" in the JD Edwards EnterpriseOne Applications Multicurrency Processing Implementation Guide.

    See "Setting Up Exchange Rates" in the JD Edwards EnterpriseOne Applications Multicurrency Processing Implementation Guide.

  7. Set up ledger type rules.

    See "Setting Up Ledger Type Rules for General Accounting" in the JD Edwards EnterpriseOne Applications General Accounting Implementation Guide.

  8. Enter address book records.

    See "Entering Address Book Records" in the JD Edwards EnterpriseOne Applications Address Book Implementation Guide.

  9. Set up inventory information, such as branch/plant constants, default locations and printers, manufacturing and distribution AAIs, and document types.

    See "Setting Up the Inventory Management System" in the JD Edwards EnterpriseOne Applications Inventory Management Implementation Guide.

  10. Set up shop floor calendars.

    See "Setting Up Shop Floor Management" in the JD Edwards EnterpriseOne Applications Shop Floor Management Implementation Guide.

  11. Set up manufacturing constants.

    See "Setting Up Manufacturing Constants" in the JD Edwards EnterpriseOne Applications Product Data Management Implementation Guide.

1.3.2 Procurement Implementation Steps

The suggested application-specific implementation steps for the JD Edwards EnterpriseOne Procurement system:

  1. Define order line types.

    See Section 6.3.3, "Defining Order Line Types".

  2. Set up order activity rules.

    See Section 6.4.4, "Setting Up Order Activity Rules".

  3. Set up procurement constants.

    See Section 6.5, "Setting Up Procurement Constants".

  4. Define procurement next numbers.

    See Section 6.2, "Understanding the Setup of Procurement Next Numbers".

  5. Set up user-defined codes.

    See Section 6.7.5, "Setting Up Distribution AAIs".

  6. Set up AAIs.

    See Section 6.6, "Setting Up UDCs".

  7. Create tolerance rules.

    See Section 6.8.3, "Creating a Tolerance Rule".

  8. Set up order hold information.

    See Section 6.10.4, "Entering Order Hold Information".

  9. Set up landed costs.

    See Section 6.11.4, "Setting Up Landed Costs".

  10. Set up nonstock items.

    See Section 6.12.4, "Setting Up Nonstock Items".

  11. Define print messages.

    See Section 6.13, "Defining Print Messages".

  12. Set up templates for purchase orders.

    See Section 6.14.1, "Understanding Purchase Order Templates".

  13. Create model logs.

    See Section 6.15.4, "Creating a Model Log".

  14. Set up hierarchical logs.

    See Section 6.16, "Setting Up Hierarchical Logs".

1.4 Business Interface Integration Objects

A business interface is a set of components that implementation teams can use to create an integration between JD Edwards EnterpriseOne and an external system. Business interfaces can include one or more of these business interface components:

  • Business Services

  • Real-Time Events

  • Batch Import and Export Programs

For additional information about business interfaces, and the business objects available for this product area, see these topics in the JD Edwards EnterpriseOne Applications Business Interface Reference Guide: