Purchase Order Consolidation

If you have requisition lines with the same business unit, supplier, and buyer, or just the same business unit and supplier, you can consolidate these lines onto single purchase orders. This feature is useful if you do not want to send multiple purchase orders to the same supplier for the same business unit.

If you consolidate the requisition lines onto a single purchase order, the supplier receives only one purchase order from each business unit (or each business unit and buyer combination) each time that you create purchase orders using the PO Calculations and the Create Purchase Orders processes. When you choose the consolidate option, lines for the same item ID (marked as consolidated) for multiple requisitions will be consolidated onto one line on the purchase order. However, the schedules do not get consolidated. You will see a separate schedule (along with its original distributions) for each schedule on the originating requisitions.

On the requisition, if you choose to consolidate the purchase orders on the Sourcing Controls page, when you order by item ID on a requisition, the requisition line is eligible for consolidation by default. You can override this setting.

When contracts are specified on requisition lines that are marked for consolidation (as allowed by a PO business unit setting), lines with the same item have to have the same contract information in order to be consolidated onto one purchase order line. Like items that do not share identical contract information will still be consolidated onto the same PO, but will occupy separate lines.

Based on the setting for the requisition line, the AutoSelect Requisitions process (PO_REQSORC) marks the line for consolidation when it creates the entry on the PeopleSoft Purchasing stage tables.

These other processes that load the PeopleSoft Purchasing stage tables always set the line on the stage table to not consolidated:

  • PO Stage Load (PO_POSTAGE).

  • Request for Quotes.

  • Purchase Order Contracts (PO_POCNTRCT).

  • Create Par Replenishment Requests (INPGCDMD).

You can override the consolidation method used by online requisition selection by selecting the Define PO (define purchase order) option on the Requisition Selection - Sourcing page. Select this option to create one purchase order for each supplier. Each requisition line that you select appears on its own line, even if it is for the same item. If you select the Define PO option, you must define the purchase order here. The PO Calculations process cannot override this setting even if you select the Consolidation option.

When you select the Define PO option, the information that you view on the Requisition Selection - Sourcing page is exactly what will appear on the purchase order. If you are sourcing to PeopleSoft Inventory or opt to not use the Define PO option, the system copies the requisition information to the stage table, and the PO Calculations process uses it.

The consolidation type that you select on the PO Calculations page determines whether purchase orders are consolidated by business unit, supplier, and buyer, or by business unit and supplier only. The consolidation method applies only to staged rows marked for consolidation.

For example, if you decide to consolidate by business unit and supplier only, then all the rows marked for consolidation that go to the same supplier within the same business unit are grouped onto one purchase order even if they have different buyers. If you decide to consolidate by business unit, supplier, and buyer, then all rows marked for consolidation that go to the same supplier within the same business unit and have the same buyer are grouped onto one purchase order.

If one of these conditions exists on the requisition, then consolidation cannot take place:

  • You did not select the Calculate Price option on the requisition-related Line Details page.

  • The supplier is specified on the requisition, and you did not select the Override Suggested Supplier option on the requisition-related Sourcing Controls page.

  • The requisition item is an ad hoc item (order by description).

Schedules are not consolidated onto the purchase order. Therefore there is a schedule on the purchase order for each requisition schedule.

Staged rows that are not marked for consolidation create a new purchase order for each supplier used on a requisition or other staged entry. So, if two requisitions not marked for consolidation are sourced at the same time, and each requisition has two lines for two different suppliers, the PO Calculations process and the Create Purchase Orders process create four purchase orders.