This chapter contains the following topics:
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.
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.
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.
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.
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.
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.
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.
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 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|
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.
For information about the Oracle Business Accelerator solution for implementation of JD Edwards EnterpriseOne Procurement, review the documentation available.
The suggested global implementation steps for the JD Edwards EnterpriseOne Procurement system:
Set up global user-defined codes (UDCs).
Set up companies, fiscal date patterns, and business units.
Set up next numbers.
Set up accounts and the chart of accounts.
Set up General Accounting constants.
Set up multicurrency processing, including currency codes and exchange rates.
Set up ledger type rules.
Enter address book records.
Set up inventory information, such as branch/plant constants, default locations and printers, manufacturing and distribution AAIs, and document types.
Set up shop floor calendars.
Set up manufacturing constants.
The suggested application-specific implementation steps for the JD Edwards EnterpriseOne Procurement system:
Define order line types.
Set up order activity rules.
Set up procurement constants.
Define procurement next numbers.
Set up user-defined codes.
Set up AAIs.
Create tolerance rules.
Set up order hold information.
Set up landed costs.
Set up nonstock items.
Define print messages.
Set up templates for purchase orders.
Create model logs.
Set up hierarchical logs.
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:
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: