Order Processing Cycle

The purchase order processing cycle consists of three primary steps:

Creating an order.
Receiving the goods or services.
Creating a voucher to pay for the goods or services.

After you enter an order, you can enter receipt information in the system (formal receiving process) to receive the goods or services. If you follow informal receipt processing, you must compare invoice information to the original purchase order to create a voucher. If you purchase for inventory, you must use the formal receiving process. If you purchase against general ledger account numbers, you can use either the formal or informal receiving process.

The method you use to create vouchers depends on the receiving process. If you use the formal receiving process, you can create vouchers:

Individually by verifying that invoice information matches receipt information.
In batch mode using existing receipt records.

Each time you enter an order, you must provide details about the items and services that you want to order. For each item or service, you must enter a line of detail that describes the item or service, including the quantity and cost.

You must specify a line type for each detail line. The line type indicates how the system manages information on the detail line. For example, you might have a line type of S (for stock items) to indicate that the system is to replenish the quantity of the item in the JD Edwards EnterpriseOne Inventory Management system and reflect the cost in the general ledger and the JD Edwards EnterpriseOne Accounts Payable system.

You must set up order processing cycles to indicate how the system is to process the detail lines for each order type (purchase orders, requisitions, blanket orders, and so forth). For example, you can set up the processing cycle for inventory purchase orders as follows:

Enter purchase order.
Print purchase order.
Print purchase receiver.
Receive goods or services.
Create voucher.

You use order activity rules to define the operations the system performs for a processing cycle and to indicate the progression of the steps.

You must set up order activity rules for every combination of order type and line type. You use user-defined status codes to set up the order activity rules. Each status code represents a step in the processing cycle, for example printing the order.

Each detail line of an order contains a pair of status codes. These codes identify the last status and the next status to which the system advances the line. The last status code represents the last operation performed on the order. The next status code represents the next step in the processing cycle.

This diagram illustrates a typical status code progression:

For each processing cycle you set up, you must specify the order type and line type to which it applies. For example, the processing cycle illustrated might only apply to purchase order detail lines to which you assign a line type of S.