Understanding Procurement Groups in PeopleSoft

The Procurement Groups feature enables you to group purchasing items from a single or multiple transactions together such as consolidating items from multiple purchase order receipts into one asset for PeopleSoft Asset Management. Procurement Groups are not restricted to assets (in PeopleSoft Asset Management) and can be assigned to any PO transaction line item.

In PeopleSoft Asset Management, a large asset can come with many separate parts that need to be combined to create the large asset. Within PeopleSoft Purchasing, this large asset could have separate items and separate lines on a requisition, purchase order, or receipt. These parts may be bought from different suppliers causing more than one purchase order for the same large asset. For example, the total cost for an air conditioning unit may come in different parts such as the AC unit, air filters, installation brackets, and even the cost of the installation service. All of these costs should be part of the asset. The Procurement Groups feature enables you to track each item and it's cost through requisitions, purchase orders, and receipts. Inquiry pages help you track the stage of each transaction so that you know when you have received the entire asset and are able to create the asset in PeopleSoft Asset Management with the entire cost captured.

The following fields are used on requisition, purchase order, or receipt transactions to identify transaction lines as part of a procurement group:

Field

Definition

Procurement Group ID field

Select an existing Procurement Group ID for the item (search on partial or full values of the Procurement Group ID, Short Name or Description). When you select a Procurement Group ID, an edit enforces that the Receiving Required option is set. A save-time edit verifies that all items in the Procurement Group ID belong to the same Asset Management Business Unit value when the Allocate Purchasing Group to Assets option is selected on the Purchasing Options page. SeePurchasing Options Page See also, Setting Up Procurement Groups

At the time a Purchase Order is copied to create a new Purchase Order, the Procurement Group-related fields ( Procurement Group ID, Primary Unit, Unit Allocation Quantity and Unit Allocation Amount fields) will be cleared on the new purchase order lines. At the time a Requisition line is copied to a Purchase Order, the Procurement Group-related field values found on the corresponding Requisition line populate the new Purchase Order line. When the Procurement Group ID is being copied from the Requisition to a PO, the Receiving Required field is selected for the PO line.

Primary Unit

Identifies whether the listed item is the primary unit (value = Y) within a given procurement group.

Unit Allocation Quantity

Identifies the quantity of the item to allocate per asset for the Procurement Group. This quantity is available for non-amount only transactions. It is utilized during receiving and asset integration.

Unit Allocation Amount

Identifies the amount of the item to allocate per asset for the Procurement Group. This amount is available for amount only transactions. It is utilized during receiving and asset integration..

The steps to activate and use the Procurement Groups feature in PeopleSoft Purchasing are:

  1. To activate the Procurement Groups feature for a purchasing business unit, go to the Purchasing Options page and:

    • Select the Purchasing Group Option check box. If this check box is selected, then the Procurement Group ID, Primary Unit, Unit Allocation Quantity, and Unit Allocation Amount fields are displayed on the requisition, purchase order, and receipt transaction pages.

    • Select the Allocate Purchasing Group check box to enable functionality for procurement group information to be passed to PeopleSoft Asset Management to create an asset.

  2. Use the Procurement Groups page to create a procurement group ID for each asset, or item grouping, that you want to create. For example, you might set up the procurement group ID, ACUnit_01 for the items making up an air conditioning unit.

  3. When adding requisition lines, go to the Procurement Group ID, Primary Unit, Unit Allocation Quantity, and Unit Allocation Amount fields and populate the information. In PeopleSoft Purchasing, these procurement group fields are located within the Add/Update Requisitions component on the Maintain Requisitions- Requisition page and on the Maintain Requisitions- Details for Line page. In PeopleSoft eProcurement these procurement group fields are located in the Create Requisition component. In addition, the requisition pages have a link to the Procurement Groups page in case you need to add or update a procurement group ID. If this requisition line is sourced to a purchase order, then the procurement group information is placed on the purchase order line.

  4. When adding purchase order lines online, go to the Procurement Group ID, Primary Unit, Unit Allocation Quantity, and Unit Allocation Amount fields and populate the information. These procurement group fields are located on the Add/Update POs and Add/Update Express POs components and the Details for Line page. In addition, the purchase order pages have a link to the Procurement Groups page in case you need to add or update a procurement group ID. If you copy this purchase order from another purchase order, the procurement group fields are not populated from the original purchase order. Procurement group information can be viewed on the Purchase Order Inquiry component in the Line Details section.

  5. Once the purchase orders are dispatched to the suppliers and the items arrive at your organization, you can receive the items into PeopleSoft Purchasing or PeopleSoft eProcurement. In PeopleSoft Purchasing, the procurement group fields (Procurement Group ID, Primary Unit, Unit Allocation Quantity, and Unit Allocation Amount fields) are displayed in the Maintain Receipts- Receiving page within the Source Information tab and on the Maintain Receipts - Receipt Line Details for Line page. In PeopleSoft eProcurement, the procurement group fields are displayed on the Receive page and the Line Details page.

  6. The Procurement Group Inquiry page enables you to view the requisitions, purchase orders, receipts, and vouchers associated with a procurement group.

  7. Once you have received the items, use the Receiver Interface Push process (PO_RECVPUSH) to move data to the PeopleSoft Asset Management interface table.

See Receipt Push Process Processing Excise Duty and Sales Tax/VAT in the PO Receipt Push Process

This example shows how to use a procurement group to create a new asset in PeopleSoft Asset Management and how the quantities are allocated. The items in this procurement group are:

  • Commercial air conditioning units.

  • Air conditioning brackets.

  • Air conditioning filters.

  • Installation services.

The supplier for the air conditioning units is different than the supplier for the brackets and filters .

The steps are:

  1. Using the Procurement Groups page, a new procurement group ID named AC-ASSET is created.

  2. A requisition is created with four lines. The AC-ASSET procurement group ID is assigned to each of the requisition lines with the following items:

    • (Primary unit) Four commercial air conditioning units with an allocation quantity of one.

    • Eight air conditioning brackets with an allocation quantity of two.

    • Four air conditioning filters with an allocation quantity of one.

    • An amount-only requisition line for 2,000 USD of installation services with an allocation amount of 500 USD.

      Note: All four lines of the requisition have the same PeopleSoft Asset Management business unit and asset profile ID assigned at the distribution line level.

  3. The requisition is approved.

  4. The requisition is sourced to three separate purchase orders:

    • One purchase order for the supplier of the air conditioning units.

    • One purchase order for the supplier of the brackets and filters.

    • One purchase order for the supplier of the installation services of the AC units.

  5. The purchase orders are approved and dispatched.

  6. Two air conditioning units are received from the first purchase order and entered into the Maintain Receipts- Receiving page in PeopleSoft Purchasing.

  7. Five brackets and four filters are received from the second purchase order and entered into the Maintain Receipts- Receiving page in PeopleSoft Purchasing.

  8. 1,000 USD of installation services are performed by the service supplier and entered into the Maintain Receipts- Receiving page in PeopleSoft Purchasing.

  9. Receiver Interface Push process is run. The data is placed in the RECV_LN_ASSET table and the Asset Management Interface table (INTFC_PRE_AM) as follows:

    Asset Interface Table (INTFC_PRE_AM)

    Item Description

    Procurement Group ID

    Procurement Group Sequence

    Primary Unit

    Asset Qty

    Asset Amount

    Status

    AC unit

    AC-ASSET

    0001

    Y

    1

    Pending

    Installation of AC

    AC-ASSET

    0001

    N

    $500.00

    Pending

    AC Brackets

    AC-ASSET

    0001

    N

    2

    Pending

    AC Filters

    AC-ASSET

    0001

    N

    1

    Pending

    AC unit

    AC-ASSET

    0002

    Y

    1

    Pending

    Installation of AC

    AC-ASSET

    0002

    N

    $500.00

    Pending

    AC Brackets

    AC-ASSET

    0002

    N

    2

    Pending

    AC Filters

    AC-ASSET

    0002

    N

    1

    Pending

    AC Brackets

    AC-ASSET

    0003

    N

    1

    PO Grp Incomplete

    AC Filters

    AC-ASSET

    0003

    N

    1

    PO Grp Incomplete

    AC Filters

    AC-ASSET

    0004

    N

    1

    PO Grp Incomplete

  10. The remaining items are received and put into the Maintain Receipts- Receiving page in PeopleSoft Purchasing:

    • Two air conditioning units.

    • Three brackets

    • 1,000 USD of installation services are performed by the service supplier.

  11. Receiver Interface Push process is run. The data is placed in the RECV_LN_ASSET table and the Asset Management Interface table (INTFC_PRE_AM) as follows:

    Asset Interface Table (INTFC_PRE_AM)

    Item Description

    Procurement Group ID

    Procurement Group Sequence

    Primary Unit

    Asset Qty

    Asset Amount

    Status

    AC unit

    AC-ASSET

    0003

    Y

    1

    Pending

    AC Brackets

    AC-ASSET

    0003

    N

    1

    Pending

    Installation of AC

    AC-ASSET

    0003

    N

    $500.00

    Pending

    AC unit

    AC-ASSET

    0004

    Y

    1

    Pending

    AC Brackets

    AC-ASSET

    0004

    N

    2

    Pending

    Installation of AC

    AC-ASSET

    0004

    N

    $500.00

    Pending

    In addition, the last three rows from the first receipt (procurement group sequence 0003 and 0004) now have a status of Pending.

    If any changes are made to the receipts while the data is still in the Asset Management Interface table, the table is updated. For example, if the first receipt of filters is changed from four filters to two, then the AC filters rows for procurement group sequence 0003 and 0004 are set to the status of Retire. If the other interface rows for procurement group sequence 0003 and 0004 have not been processed by the Asset Transaction Loader process (AMIF1000) then the status of those rows would be set to PO Grp Incomplete. Later, when the two additional filters are received, new rows are inserted for the filters and all rows for procurement group sequence 0003 and 0004 are set to Pending status.