Defining Order-Level Adjustment for Procurement

To use order-level pricing for purchase orders, you must set up your system to define the adjustment schedule, repricing groups, and the adjustment definition.

Note: Be aware that many of the forms used to view and maintain order-level cost adjustments for purchase orders are also used for order-level price adjustments for sales orders. Because of this, the item cost will sometimes appear in item price fields. For example, you use the Price Adjustment Definition form to set up the price adjustment, but you are actually creating a cost adjustment.

To set up your system for order adjustments for procurement:

1. Set up pricing constants in the Branch/Plant Constants program (P41001).

   You must enter Y in the Advanced Procurement Pricing field to use order adjustments for procurement.

   See Setting Up Pricing Constants.

2. Set up advanced pricing hierarchies in the Preference Hierarchy program (P40073).

   These hierarchies determine how the system retrieves base costs and calculates cost adjustments. Hierarchies that you set up for order-level adjustments must include an item group; otherwise, the system issues an error when you try to use the hierarchy in the Price Adjustment Definition program (P4071).

   See Reviewing the Base Price Preference Hierarchy.

3. Create cost adjustment types in the Price Adjustment Definition program (P4071).

   When creating your definitions, the following values are required:

   • Adjustment Name: Enter the code that you created in UDC (40/TY).

   • Target Application: Select the Procurement option to set up the adjustment definition for purchase orders.

   • Adjustment Level: Select Order Level Adjustment.

   • Preference Hierarchy: Enter the preference hierarchy that you created in Step 2.

   • Price Matrix : Use Price Matrix is not supported for Procurement Order Level Pricing.

   • Adjustment Control Code: Select Add to Purchase Detail (Add to Purchase Detail is a new code '9', added in UDC 40/CO)

   See Working with Adjustment Definitions for additional information and instructions regarding adjustment definitions.

4. Add adjustment details, such as the special processing for free goods or cost formulas, in the Adjustment Details program (P4072).

   You define the Order Reprice Group, the criteria for receiving the cost adjustment, and the details of the adjustment amount in this step. Note that basis codes 3, 4, and 9 are not valid for order adjustments for procurement.

   See Setting Up Adjustment Details for additional information and instructions regarding price adjustment details.

5. Create adjustment schedules using the Price and Adjustment Schedule Revisions program (P4070).

   You use this program to specify the sequence in which the system applies adjustments to purchase orders. Note that regardless of the sequence that you enter here, the system will always apply line-level adjustments before applying order-level adjustments. Then, apply order-level adjustments

   See Building Adjustment Schedules for additional information and instructions regarding adjustment schedules.

6. Update the Order Reprice Group field in the Item Branch (F4102) for each item with the item code from UDC 40/PI.

   For example, if you want to create an order-level adjustment for all items from a specific vendor, you would create a code in UDC 40/PI and then add that code to all of the item branch records for that vendor.

7. Add adjustment schedules to your supplier records, if desired, by entering the adjustment schedule name in the Adjustment Schedule field on the Purchasing 1 tab of the supplier master record.

   See Entering Supplier Information in the JD Edwards EnterpriseOne Applications Accounts Payable Implementation Guide for additional information and instructions regarding supplier setup.