Establishing Product Definitions

To define products, use the Product Definition component (PROD_DEFN).

Use the PROD_DEFN_CI component interface to load data into the table for this component.

This section provides an overview of the product definition process and also discusses other options and definitions involved.

Page Name

Definition Name

Usage

Product Definition - Definition Page

PROD_DEFN

Define the product.

Product Images Page

PROD_IMAGE

Set up the product image.

Product Definition - Options page

PROD_OPTIONS

Set up selling and sales tax criteria for a product. The margin information that you enter here is used by the system to notify the operator during order entry of any deviation from the upper and lower margin restrictions specified for this product. Margin violation may place the order line on hold.

Product Definition - Options 2 Page

PROD_OPTIONS2

Add PeopleSoft Project Costing links, defaults, cost element for nonstock products, and configuration information.

Product Definition - Competitor Page

PROD_COMPTTRS

Keep track of competitors' equivalent products by product number, as well as any alternate products competitors may have. You can use this information for sales analysis and reporting.

Contract Options Page

PROD_CONTRACTS

Establish product attributes for products used with PeopleSoft Contracts.

This page only appears if PeopleSoft Contracts is installed.

Product Custom Info 1 Page

PROD_GEN_INFO1

Create character-length alphanumeric fields.

Product Custom Info 2 Page

PROD_GEN_INFO2

Create additional character-length alphanumeric fields.

Product Custom Info 3 Page

PROD_GEN_INFO3

Create additional character-length numeric fields.

After you have performed the prerequisite product tasks and defined the items, you can begin defining products using the Product Definition component. The pages in this component are also available as inquiry pages.

To set up products:

  1. Define the required attributes for the product ID at the SetID level using the Product Definition - Definition page.

  2. Optionally establish an image for the product on the Product Image page.

  3. Establish margin and sales tax options on the Product Definition - Options page.

  4. Establish project, export, drop-ship, cost element, and configuration options on the Product Definition - Options 2 page.

  5. Establish competitor product information on the Product Definition - Competitor page.

  6. Establish attributes for products used with PeopleSoft Contracts on the Contracts Options page.

  7. Establish user-defined fields on the Product Custom Info 1, Product Custom Info 2, and Product Customer Info 3 pages.

Use the Product Definition - Definition page (PROD_DEFN) to define the product.

If you did not establish a product ID when you set up the item ID, you can create it on the Product Definition - Definition page. You can also create multiple product IDs for one item ID for greater marketing and reporting flexibility.

Associating Products with Items

If the product is not a kit, and you defined the product ID during item definition using the Item Definition - General: Common page, the item ID associated with the product ID is supplied by default. You can override this default. Associate multiple product IDs with a single inventory item to enhance marketing and sales tracking capabilities.

This item information defined on Item Definition - General: Common page appears:

Field or Control

Definition

Standard UOM (standard unit of measure)

The unit of measure that reflects the most common unit of measure for the item.

Note: This field is not used for contracts-only products.

Inventory Item

A check indicates that the item is defined as being associated with an item that may not actually be stocked in inventory.

Note: This field is not used for contracts-only products.

Description

This field is required; however, you can enter a different description than that of the item associated with the product.

Long Description

This field is optional; however, you can enter an extended product description.

Defining Product Kits

Define product kits by selecting the Product Kit check box. The Item ID field is unavailable for entry after you have selected the Product Kit check box. After identifying a product as a kit, establish its components on the Product Kit Summary page.

When you select the Product Kit check box, these fields appear:

Field or Control

Definition

Price Kit at Top Level

Indicates that the kit is priced at the top parent product ID level. When you select this option, you define the prices as you would for a regular product ID, using the Product Price page. Configured kits can be priced only at the top level.

Price Kit at Component Level

Indicates that the kit is priced at the component level. When you select this option, you define the price for each component of the kit using the Product Kit Component Pricing page.

Entering General Product Information

Field or Control

Definition

Product Use

Select from these options:

Note: If PeopleSoft Contracts is not installed, the field is hidden and populated with the value General Use Excluding Contracts by default. If PeopleSoft Order Management is not installed and PeopleSoft Contracts is installed, the field is visible and the value Contracts Only appears by default.

Note: These rules apply to what type of component can be used with a product kit: General Use Including Contracts product kits can contain only General Use components, General Use Excluding Contracts product kits can contain only General Use or General Use Excluding Contracts components, and Contracts Only product kits can contain only General Use or Contracts Only components.

Contracts Only: The product can be used only with contracts. No inventory item is related to this type of product.

General Use Excluding Contract: The product will not be used with contracts.

General Use Including Contract: The product can be used anywhere in the system that prompts for a product ID.

Catalog Number and Model Number

If a product appears in another supplier catalog, you can associate a product with either of these fields. They are informational only. The values in both fields print on the Product Master Report page report.

Status

The default for the product is Active.

Product Brand

Used to associate a product with a brand.

Product Category

Used to associate a product with a category.

Physical Nature

Select the default physical nature for the product. Options are Intangible/Services and Physical Goods.

Where Performed

Select the default location where a service is most often physically performed. Options are Buyer's Location, Ship From Location, Ship To Location, and Supplier's Location.

View Product Image

Use to add or view an image associated with the product.

VAT Default (value-added tax default)

Click to access the VAT Defaults Setup page.

This page is a common page used to set up VAT defaulting for all PeopleSoft applications that process VAT transactions. On this page you can define product defaults as applicable.

VAT Service Treatment Setup (value-added tax service treatment setup)

Click to access the Services VAT Treatment Drivers Setup page.

This is a common page used to set up VAT services treatment for all PeopleSoft applications that process VAT transactions. If you are required to implement special handling for services, you can specify product service treatment defaults on this page as applicable.

Use the Product Image page (PROD_IMAGE) to set up the product image.

After you have set up the product image, you can view it by clicking the View Product Image link on the Product Definition page. You can also view the product image during sales order entry.

Field or Control

Definition

Default Image Name

Specify the file name for the image. You must include a slash (/) in front of the file name. Make sure that you have already defined an image directory, locally or on the web, on the Image Location page.

Alternative Image 1 and Alternative Image 2

Use to establish alternative images.

Use the Product Definition - Options page (PROD_OPTIONS) to set up selling and sales tax criteria for a product.

The margin information that you enter here is used by the system to notify the operator during order entry of any deviation from the upper and lower margin restrictions specified for this product. Margin violation may place the order line on hold.

Selling Options

Use either a percentage or a flat amount to establish the allowable margin range for a product entered on a sales order schedule after all discounts have been applied. Negative margins are acceptable. When creating buying agreements or order or quote lines, the system warns you if the net unit price is not within the margins, and depending on the business unit settings, places the order schedule on hold.

Field or Control

Definition

Lower Margin % (lower margin percent) and Upper Margin % (upper margin percent)

If you want the system to calculate the difference between the unit cost and net unit price in percentages, enter values in these fields.

Lower Margin Amount and Upper Margin Amount

If you want the system to calculate the difference between the unit cost and net unit price using a flat amount, select the appropriate currency, and enter values in these fields.

Margin Base

Used to identify the basis to apply adjustments. Values are:

Cost: Use this option to base the cost on the unit cost.

Alternate Cost: Use this option as the basis for upper and lower limits for adjustments. For example, you might increase the cost by 5 percent to include the cost of commission.

Do Not Adj. For Alternate Cost (do not adjust for alternate cost)

Select if you do not want the product (or product group) to be adjusted by a different cost.

Alternate Cost Adjust % (alternate cost adjustment percent)

Add a value for the percentage to apply to the unit cost to derive an alternate cost.

Sales Tax Options

Field or Control

Definition

Tax Product Number, Transaction Type and Transaction Sub Type

Tax Product Number is passed to the third-party tax provider and is matched against a table of rates or exceptions to find the correct tax rate for the product and ship to destination. You can use the transaction type and transaction sub type to further qualify the tax product number.

Note: If the field is not populated for a new product, the product ID is supplied by default to this field at save time.

Use the Product Definition - Options 2 page (PROD_OPTIONS2) to add PeopleSoft Project Costing links, defaults, cost element for nonstock products, and configuration information.

Project Cost Options

Field or Control

Definition

Project ID and Activity ID

You can associate a project code and activity with the product.

Other Attributes

Field or Control

Definition

Export License Required

Select if export shipments of this product require a license. No processing in PeopleSoft Order Management is currently associated with this option.

Direct Ship from Supplier

Select to indicate that this product is shipped directly from another supplier to the customer. This information is supplied by default to the order schedule when this product is referenced and can be overridden.

Note: Product kits cannot have components that are drop shipped. They will not be picked up by PeopleSoft Purchasing. You cannot add a component to a kit if it is marked as drop shipped. You will receive an error message and must remove the component from the kit before you can save the Kit Setup component. If you update the product definition of a kit component, do not select the drop ship flag. The warning will not be issued and PeopleSoft Purchasing will not pick up the component for fulfillment.

Demand Planning Item

The field is used by PeopleSoft Demand Planning. When the field is selected, the product will be used in forecasting by PeopleSoft Demand Planning.

Cost Element

Defined for stocked items when you set them up in PeopleSoft Inventory on the Item Definition - General: Common page. For drop-ship products and other products not stocked in PeopleSoft Inventory, you must select one on this page.

Cost elements are used to segregate portions of the product cost. For purchased products, the cost element defined most likely represents material. For nonstock products, it represents expenses. If the product is a non-tangible charge, such as consulting, the cost element may represent labor or expenses.

Note: Cost elements are required for PeopleSoft Inventory accounting.

Configuration Options

These fields are available for entry only if you have selected the Configured option on the Product Definition - Definition page.

Field or Control

Definition

Configuration Code Generation

Select to have the system dynamically create the configuration code for the configured kit. The configuration code on configured kits is informational during order entry. It is formatted and appears only during order entry. The code is based on a configuration code template that you specify on the page.

Use the Product Definition - Competitor page (PROD_COMPTTRS) to keep track of competitors' equivalent products by product number, as well as any alternate products competitors may have.

You can use this information for sales analysis and reporting.

Field or Control

Definition

Competitor Code

Established on the Competitor Codes page. These fields are informational only and no processing is associated with these fields. You can also add the competitor product number and a description.

Use the Contracts Options page (PROD_CONTRACTS) to establish product attributes for products used with PeopleSoft Contracts.

Note: This page appears only if PeopleSoft Contracts is installed.

The table lists the allowable price types for each revenue method:

Price Type

Revenue Recognition Method

Amount or Percent

Milestone, Percent Complete, Apportionment, Billing Manages Revenue

Rate

As Incurred

Recurring

Billing Manages Revenue

Field or Control

Definition

Price Type

The price type that you select for a product determines the details that you can define for that product and the billing and revenue recognition methods with which you can associate the product. Select from these options: Amount, Percentage, Rate, or Recurring.

Recognition Method

Defines the criteria that must be met before revenue can be recognized. Select from these options:

Apportionment: Recognize a fixed amount of revenue over a predefined period of time.

As Incurred: Manage revenue on an as-needed basis manually or using scheduled processes. This is the only method used for rate-based contract lines.

Billing Manages Revenue: Have PeopleSoft Billing, not PeopleSoft Contracts, manage the revenue for a contract line. Only fixed-amount and recurring contract lines can use this method. You must always use this method with recurring price types.

Milestone: Recognize a fixed amount of revenue spread over time and triggered as each milestone is met.

Percent Complete: Recognize revenue based on a manually entered percentage of completion.

Third Party Flag

Select to designate that this is a product or service provided by a third party. This check box is informational only—no processing logic is keyed from this selection.

Renewable

Select this check box to designate this product as renewable. Only products with a price type of Amount or Percentage can be selected as renewable. If the product is a kit, the Renewable flag must be deselected.

Renewal Action

Select the appropriate renewal action from the drop down list. The options are Automatic and Manual. A value is required if the Renewable flag is selected.

Percentage

Enter the percentage and select whether it is a percentage (%) of total contract amount or a percentage (%) of total contract lines.

Note: The percentage can be any amount. The Percentage field and the % of field apply to products with a price type of percent.

Templates

You can select revenue and bill plan templates to automate the creation of revenue and billing plans. You can select a bill plan detail template ID to override the billing defaults for the contract billing business unit and contract header. You can select a renewal plan template to automate the creation of renewal plans.

PeopleSoft Order Management delivers a wide variety of options for defining the product attributes; however, the business may have additional requirements. You can use the Prod Custom Info (product custom information) pages to establish user-defined fields to be stored in the Product Master table.

Each of the Prod Custom Info pages contains fields of various sizes and types: from 1 to 30 characters long in alphanumeric, numeric with decimal places, or numeric without decimals formats. You use the PeopleTools Application Designer to modify the field labels on the page, and you must provide the appropriate code changes for PeopleSoft software to process these fields.

To establish user-defined product fields:

  1. Determine the usage requirements, and select the appropriate field on one of the Product Custom Info pages.

  2. Modify the field label using Application Designer in PeopleTools.

  3. Make the necessary code changes.

Product Custom Info1 Page

Use the Product Custom Info 1 page (PROD_GEN_INFO1) to create character-length alphanumeric fields.

Field or Control

Definition

Prod Char30 A (product character 30), Prod Char30 B (product character 30), Prod Char30 C (product character 30) and Prod Char30 D (product character 30)

A−D alphanumeric fields, up to 30 characters in length.

Prod Char 1 A (product character 1), Prod Char 1 B (product character 1), Prod Char 1 C (product character 1) and Prod Char 1 D (product character 1)

A−D alphanumeric fields, 1 character in length.

Product Custom Info2 Page

Use the Product Custom Info 2 page (PROD_GEN_INFO2) to create additional character-length alphanumeric fields.

Field or Control

Definition

Prod Char 10 A (product character 10), Prod Char 10 B (product character 10), Prod Char 10 C (product character 10) and Prod Char 10 D (product character 10)

A–D alphanumeric fields, up to 10 characters in length.

Prod Char 2 (product character 2)

Alphanumeric fields, up to 2 characters in length.

Prod Char 4 (product character 4)

Alphanumeric fields, up to 4 characters in length.

Prod Char 6 (product character 6)

Alphanumeric fields, up to 6 characters in length.

Prod Char 8 (product character 8)

Alphanumeric fields, up to 8 characters in length.

Product Custom Info3 Page

Use the Product Custom Info 3 page (PROD_GEN_INFO3) to create additional character-length numeric fields.

Field or Control

Definition

Prod N12.3 A (product number 12.3), Prod N12.3 B (product number 12.3), Prod N12.3 C (product number 12.3) and Prod N12.3 D (product number 12.3)

A–D numeric fields, up to 12 integers and 3 decimal places in length.

Prod Nbr 15 A (product number 15), Prod Nbr 15 B (product number 15), Prod Nbr 15 C (product number 15) and Prod Nbr 15 D (product number 15)

A–D numeric fields, up to 15 integers in length.