Setting Up Sourcing Templates

To set up sourcing templates, use the Sourcing Template component (PL_SRC_TEMPLATE).

Sourcing demand is the process that the PeopleSoft Supply Planning system uses to determine how the supply for an item's demand is going to be filled. The system sources demand using sourcing options. These options define parameters for manufacturing, purchasing, or transferring an item to meet demand. You define these options when you set up an item.

This topic provides an overview of sourcing templates, lists common elements, and discusses how to set up sourcing templates.

Page Name	Definition Name	Usage
Define Sourcing Templates Page	PL_SRC_TEMPLATE	Create sourcing templates. Identifies sourcing details including production, purchasing, and transfer options for sourcing templates.
Define Sourcing Templates - Update Production Page	PL_SRC_PROD_SP	Identify production options to be considered when creating planned production for the item. Define Sourcing Templates Page
Define Sourcing Templates - Update Transfers Page	PL_SRC_TRANS_SP	Identify transfer options to be considered when creating planned transfers for the item.
Define Sourcing Templates - Update Purchase Page	PL_SRC_PURCH_SP	Identify purchase options to be considered when creating planned purchases for the item.
Generate Sourcing Templates - Generate Templates Page	PL_GEN_TMPL_REQ1	Generate sourcing templates. The Create Sourcing Templates process loads production, transfer, and purchasing options automatically into a sourcing template for one business unit group at a time. You can create and maintain a sourcing template for all of or for a range of items.
Review Sourcing Information - Sourcing Template	PL_SOURCE_DTL	Review sourcing options for an item such as priority, default, and details options.
Review Sourcing Information - Production Options	PL_PROD_DTL	Review detailed production sourcing information about the item.
Review Sourcing Information - Purchase Options	PL_PURCH_DTL1	Review detailed purchasing sourcing information about the item.
Review Sourcing Information - Transfer Options	PL_TRANS_DTL1	Review detailed transfer sourcing information about the item.

A sourcing template contains a sequenced list of sourcing options (purchase, transfer, or production) based on the item attributes that are defined in PeopleSoft Purchasing, PeopleSoft Inventory, and PeopleSoft Manufacturing. You can let the system load the options automatically, or you can set up sourcing templates manually and maintain the options. These templates are needed when multiple sourcing options exist for an item.

When you assign multiple sourcing options to a single item, you create a more flexible planning situation by providing more information to source demand. Material availability, resource capacity, and lead time can create exceptions that influence the sourcing selection. When you provide several options, the system has more opportunities to find an option that resolves an exception. For example, if a purchase option does not have adequate lead time, PeopleSoft Supply Planning can go to the next prioritized option to determine whether it can use that option to meet the demand.

The Define Sourcing Templates page enables you to review sourcing options before creating a plan, reduce processing time, and prevent the Create Sourcing Templates batch process job from overwriting those templates that you want to maintain manually.

The system uses these sourcing options to create supply to meet demand for an item:

Term	Definition
Production Option	Defines the method that you use to produce an item (for example, the material and resources that are required to make a specific item). These options combine a BOM and routing code that can be effective-dated for seasonal mix variations and that originate from item maintenance settings at the business unit level. You can create a production option for each BOM and routing code combination. You can define the BOM code, the routing code, and production option usage at the business unit level. You can also maintain options for an item when the planning rates are not maintained at the routing level. Note: Production options are based on the definitions that exist for the BOM, routing, or item. If you change or add a new BOM, routing, or item attribute (lead-time usage or production control attributes, for example) you might need to regenerate the sourcing template to ensure that solvers make proper sourcing decisions.
Transfer Option	Defines transfer attributes, such as cost or transfer time, that are associated with transferring an item from one business unit to another. Create the option by defining transfer attributes for an item. You can define transfer options at the business unit level or at the item level. Items with a planned-by option defined as Distribution use the business unit transfer option if the item does not have a specific item-based transfer option. Note: Transfer options are based on the default transfer attributes for a business unit or the item transfer attributes. If you change or add a new transfer attribute, you might need to regenerate the sourcing template to ensure that solvers make proper sourcing decisions.
Purchase Option	Defines item and supplier attributes, such as cost, lead time, and order modifiers. You create the option by defining item and supplier relationships on the Item Purchasing Attributes page. Note: Purchase options are based on the purchase item attributes. If you change or add a new purchase item attribute, you might need to regenerate the sourcing template to ensure that solvers make proper sourcing decisions.

Term

Definition

Production Option

Defines the method that you use to produce an item (for example, the material and resources that are required to make a specific item). These options combine a BOM and routing code that can be effective-dated for seasonal mix variations and that originate from item maintenance settings at the business unit level. You can create a production option for each BOM and routing code combination. You can define the BOM code, the routing code, and production option usage at the business unit level. You can also maintain options for an item when the planning rates are not maintained at the routing level.

Note: Production options are based on the definitions that exist for the BOM, routing, or item. If you change or add a new BOM, routing, or item attribute (lead-time usage or production control attributes, for example) you might need to regenerate the sourcing template to ensure that solvers make proper sourcing decisions.

Transfer Option

Defines transfer attributes, such as cost or transfer time, that are associated with transferring an item from one business unit to another. Create the option by defining transfer attributes for an item.

You can define transfer options at the business unit level or at the item level. Items with a planned-by option defined as Distribution use the business unit transfer option if the item does not have a specific item-based transfer option.

Note: Transfer options are based on the default transfer attributes for a business unit or the item transfer attributes. If you change or add a new transfer attribute, you might need to regenerate the sourcing template to ensure that solvers make proper sourcing decisions.

Purchase Option

Defines item and supplier attributes, such as cost, lead time, and order modifiers. You create the option by defining item and supplier relationships on the Item Purchasing Attributes page.

Note: Purchase options are based on the purchase item attributes. If you change or add a new purchase item attribute, you might need to regenerate the sourcing template to ensure that solvers make proper sourcing decisions.

Manually Creating and Loading Sourcing Templates

When you manually create a sourcing template on the Define Sourcing Templates page, you sequence the options and define a default option for use if the system cannot find an adequate option using prioritization. The system uses fixed-priority sourcing logic to determine which sourcing option to use to meet the demand, evaluating, in the order of priority, each sourcing option until an option meets all of the selection criteria.

The system evaluates several criteria to determine when to select a sourcing option. First, the sourcing option must be valid. For example, if effectivity dates apply to the option, the option must be effective.

Note: Effective dates apply only to production options in the Planning Instance tables.

The system also considers material and capacity availability when selecting sourcing options. If you specify material availability as a criterion, then all materials (consumed by the tasks of that routing) must exist at the time they are required. If you specify capacity as a criterion, then all aggregate resources (that are consumed by the tasks of that routing) must have available capacity at the time they are required. PeopleSoft Supply Planning considers material as a sourcing criteria.

If the system evaluates all of the sourcing options and no options meet the selection criteria, it uses the default option (identified by the PL_SRC_DEFAULT column in the PL_SRC_TMPL_INF component).

Generating Sourcing Templates Automatically

Use the Generate Sourcing Templates - Generate Templates page to load production, transfer, and purchasing options automatically into the sourcing template for one business unit group at a time. The priority of each option is based on lowest cost. After you load the sourcing options into the template, you can maintain the priorities and the default option manually.

Reviewing and Refining Sourcing Information

You can review an item's sourcing template and sourcing options by using the Review Sourcing Information inquiry component. This component displays the sourcing template for the item and the data from production, purchasing, and transfer options. Use these inquiry pages to review sourcing options to be sent to the planning engine.

Along with maintaining sourcing information at the planning-instance level, you can update the business unit sourcing template with the current planning instance sourcing template. A check box displays the setting of the Manually Maintained check box for the Business Unit sourcing template, which you can change. If you select the check box, the changes to the business unit sourcing template will not be overwritten the next time that you run the Generate Sourcing Template process.

Field or Control	Description
Apply Selected	Select this check box on the Update Production page, the Update Transfer page, or the Update Purchase page and click OK to identify the option or options that you want to load when you return to the Define Sourcing Templates page.
Associated BOM (associated bills of material)	Displays the assigned primary items BOM that is used when you are generating supply for a co-product. When an item is a co-product on multiple primary BOMs, one of the primary items must be assigned as an associated primary BOM. If an item has an associated primary item that is different from itself and also has its own BOM, then the planning instance imports production options for both the item itself and the associated primary item.
BOM (bills of material)	Displays the BOM identifier for the production option within the template. Production options can be predefined or created based on defaults that are specified at the item attributes by unit level.
Location	Select a supplier location. When purchasing items from a supplier who has multiple locations, you can, for example, select a location with the shortest lead time.
Min Order Qty (minimum order quantity)	Displays the minimum quantity that can be placed on a production, transfer, or purchase order.
Max Order Qty (maximum order quantity)	Displays the maximum quantity that can be placed on a production, transfer, or purchase order.
Order Multiple	Displays the multiple that the system uses to determine an order quantity. For example, if you have a demand for 28 and the multiple is 10, then the system generates a planned purchase order for 30. Note: Minimum and maximum order quantities must be in multiples of the order multiple if you specify an order multiple.
Routing	Displays the routing identifier for the production option within the template. The system populates this column only when routings are being used.
Ship VIA	Identifies the method that is used for shipping the item.
Source BU (source business unit)	Identifies the business unit that is shipping the item.
Unit Cost	Displays the cost to produce a single unit of the item that is defined in the sourcing template. When generating sourcing templates automatically, the system uses the cost as the basis for prioritizing sourcing. A lower item cost corresponds to a higher sourcing priority.
Supplier	Identifies a specific supplier, as defined on an item or supplier definition in PeopleSoft Purchasing.
Supplier SetID	Displays the SetID in which the supplier information was defined in PeopleSoft Purchasing.

Use the Define Sourcing Templates page (PL_SRC_TEMPLATE) to create sourcing templates.

Identifies sourcing details including production, purchasing, and transfer options for sourcing templates.

Navigation:

Supply Planning > Define Planning Attributes > Sourcing Templates > Define Sourcing Templates

Field or Control	Description
Manually Maintained	Select to identify this sourcing template as a manually maintained template. If you select this check box, the Generate Sourcing Template batch job does not overwrite any options in the template. If you no longer need to maintain this sourcing template manually, deselect this check box. The next time that you run the Generate Sourcing Template batch job, the system overwrites the current sourcing template, including the options that you have defined.
Refresh Current Template	Click to replace the existing sourcing options with the current available default sourcing options. When prompted, click Yes to refresh with the current sourcing options; click No to keep the sourcing options as they appear on the page
Update Production	Click to access the Update Production page, where you can select production options for the item.
Update Transfer	Click to access the Update Transfers page, where you can select transfer options for the item.
Update Purchase	Click to access the Update Purchase page, where you can select purchase options for the item.

Sourcing

Select the Sourcing tab to view and maintain basic information about the sourcing template.

Field or Control	Description
Default	Select to use this sourcing option as the default value when the planning engine sources demand for the current plan. You can select only one sourcing option as the default for the template. The system uses the default option to source demand when no sourcing template entries meet the selection criteria.
Priority	Enter a numerical value that defines the priority that you want the planning engine to consider when using a sourcing option to meet demand. You can enter any positive number up to 999. The planning engine (solver dependant) considers all of the sourcing template options (production, transfer, and purchase) using their priority in ascending sequence until it finds a template that can meet the demand without creating planning exceptions. If the planning solvers cannot find a template without exceptions, then it uses the default template.
Option Type	Defines whether the demand is supplied by production, purchase, or transfer.
Minimum Quantity	Defines the minimum demand quantity that should be considered when selecting this sourcing option. For example, if the demand is 10 but the minimum quantity is 50, then the sourcing option will not be considered when generating supply.
Maximum Quantity	Defines the maximum demand quantity that should be considered when selecting this sourcing option. For example, if the demand is 100 but the maximum quantity is 80, then the sourcing option will not be considered when generating supply.

Production

Select the Production tab to view and update information related to bills of material.

Purchase

Select the Purchase tab to view and update information related to purchasing and suppliers.

Transfer

Select the Transfer tab to view and update information related to material transfers.

Use the Define Sourcing Templates - Update Transfers page (PL_SRC_TRANS_SP) to identify transfer options to be considered when creating planned transfers for the item.

Navigation:

Click Update Transfers on the Define Sourcing Templates page.

Field or Control	Description
Transfer Yield	Defines the usable output from the transfer. The value is expressed as a percentage. The transfer yield is used in PeopleSoft Supply Planning to inflate the planned quantity on transfers to account for any loss that occurs during transport.

Use the Define Sourcing Templates - Update Purchase page (PL_SRC_PURCH_SP) to identify purchase options to be considered when creating planned purchases for the item.

Navigation:

Click Update Purchase on the Define Sourcing Templates page.

Supplier Details Tab

Select the Supplier Details tab.

Field or Control	Description
Standard Price	Displays the standard price for the item. The system uses this value as the default price in transactions for which another price, such as a supplier price or a contract price, is not defined for the item.
Lead Time Days	Displays the purchasing lead time that is specified for the supplier or item or supplier relationship. This value represents the amount of time that is required to get inventory from the supplier.

Order Modifiers Tab

Select the Order Modifiers tab.

Field or Control	Description
Purchase Yield	Defines the usable output from the purchase. The value is expressed as a percentage. Purchase yield is used in planning to inflate the planned quantity on purchases to account for any loss that may occur during the purchase process.

Use the Generate Sourcing Templates - Generate Templates page (PL_GEN_TMPL_REQ1) to generate sourcing templates.

The Create Sourcing Templates process loads production, transfer, and purchasing options automatically into a sourcing template for one business unit group at a time. You can create and maintain a sourcing template for all of or for a range of items.

Navigation:

Supply Planning > Define Planning Attributes > Sourcing Templates > Generate Sourcing Templates

Sourcing Options

Identifies options to update and include in the sourcing templates that are being generated. You can select all options or any combination of options, but you must select at least one option. Options that are not selected remain in any currently existing templates. For example, if you select the Purchase Options check box only, then transfer and production options remain unchanged in any template that they belong to when the templates are refreshed. The system refreshes purchase options for the items that you select in the Item Option group box. These sourcing options are available:

Field or Control	Description
Purchase Options	Select to include purchase options, which define item and supplier attributes such as cost, lead time, and order modifiers. You create the option by defining item and supplier relationships in the PeopleSoft Supply Chain Management database on the Define Items and Attributes - Purchasing Attributes component.
Production Options	Select to include production options, which include a combination of a BOM and routing code that can be effective-dated for seasonal mix variations. The option defines which materials and resources are required to make a specific item.
Transfer Options	Select to include transfer options, which define transfer attributes such as cost or transfer time, that are associated with transferring an item from one business unit to another. You create the option by defining transfer attributes for an item.

Item Option

Define which items you want to include in Create Sourcing Template processing. Options are:

Field or Control	Description
All	Select to include all items with defined sourcing options in the processing. This is the default option.
Range	Select to specify a range of items to be included in the processing. Use the adjacent fields to define a from and to item ID range. These adjacent fields are required if you select the Range option. The system creates sourcing options for those items that are within the range only.
Only New Items	Select to include only those items that have been established since the last sourcing template was created. When you select this field, the Date Added field becomes available for entry, where you must enter a date from which you want the system to consider new items.
Date Added	Enter the date from which you want the system to consider new items. The system generates sourcing templates for any items that were established after this date. This is a required field if you select Only New Items.
Run	Click to run the Generate Sourcing Templates process (PLS5000). PeopleSoft Process Scheduler runs the process at user-defined intervals.

Setting Up Sourcing Templates

Pages Used to Set Up Sourcing Templates

Understanding Sourcing Templates

Manually Creating and Loading Sourcing Templates

Generating Sourcing Templates Automatically

Reviewing and Refining Sourcing Information

Common Elements Used in This Section

Define Sourcing Templates Page

Sourcing

Production

Purchase

Transfer

Define Sourcing Templates - Update Transfers Page

Define Sourcing Templates - Update Purchase Page

Supplier Details Tab

Order Modifiers Tab

Generate Sourcing Templates - Generate Templates Page

Sourcing Options

Item Option