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:

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