Before You Begin

This 30-minute OBE shows you how to use volume-based buying recommendations in Procurement.

In this OBE, you will:

• Set up adjustments in the price adjustment program.
• Set up the tolerance percentage using the processing option.
• Create a purchase order and receive a volume-based buying recommendation.
• Use the volume-based buying recommendation report to receive suggestions for more discounts.

Background

The new Volume-Based Buying Recommendations feature helps the business by using advanced pricing capabilities in procurement to increase the savings on purchase order entry and saves time.

The JD Edwards EnterpriseOne system displays recommendations to buy a larger quantity to receive a lower price. You can set up adjustments and specify a percentage tolerance that determines when the system displays message for an order line that qualifies for volume-based buying recommendations.

When the system issues the volume-based buying recommendation, you can view this information on the Adjustment Type Quantity Breaks form and lookup buying prices for purchase orders and price history. When you select a new level break, the system changes the quantity for that order line to the amount required for the new level break in the purchase order entry. Additionally, the system searches for new line-level price adjustments that were not applied during the initial order due to lack of quantity. If a purchase order has several adjustments with opportunities for buying, the system displays a list of the adjustments, and the level breaks for the adjustment, if you select it.

Let us consider a scenario in which you want to procure sports goods for a hypermarket. You are going to procure different varieties of rackets for the hypermarket.

What Do You Need?

To perform the tasks in this tutorial, you must:

• Specify a percentage of tolerance percentage in the Enter Purchase Order program (P4310/P43101).
• Specify in the Price Adjustment Definition program (P4071) whether the adjustment is included in the search for buying recommendations during purchase order entry.

Setting Up Adjustments in the Price Adjustment Program

1. Navigate to EnterpriseOne Menus, Supply Management, Procurement and Subcontract Management, Daily Processing, Stock Based Purchasing, Price Management, Advanced Price and Adjustments, Advanced Pricing Setup, Adjustment Setup, and Price Adjustment Definition.

   The Price Adjustment Definition program (P4071) is displayed.

2. Enter the Adjustment Name as WAT1. Search and select this adjustment from the table and click OK.

   

3. Make sure the Volume Buying check box is selected under the Adjustment Options section in the Price Adjustment Definition program. Close this program.

   

4. Now, click the Adjustment Setup from the navigation and select Price & Adjustment Detail Revisions program. The Price & Adjustment Detail Revisions program (P4072) is displayed.
5. Enter values in the adjustment name as WAT1 and item number as R1041 fields and click find icon.

   

   The Adjustment list is displayed in the table.

6. Select an adjustment and click OK.

   You have now set the adjustments for the purchase order item.

Setting Up the Tolerance Limit Using the Processing Option

1. Navigate to EnterpriseOne Menus, Supply Management, Procurement and Subcontract Management, Daily Processing, Stock Based Purchasing, Purchase Order Processing, and Enter Purchase Order.

   The Enter Purchase Orders - Work With Order Headers (P4310) is displayed.

2. Click the Purchase Order Processing option from the navigation menu. Right-click to open the Enter Purchase Order from the drop-down list and click Values.

   

3. Select the Processing tab from the processing option drop-down menu. Set the tolerance percentage for volume-based buying recommendation in the alert for volume-based buying recommendation processing option.

   

4. Enter the tolerance percentage value in the Alert for Volume-Based Buying Recommendations within the Tolerance processing option. If you leave this field blank, no alert is displayed. In this example, set the tolerance value to 25.

   

   This tolerance percentage specifies how sensitive the system is when displaying the recommendation. The system checks for buying opportunities by increasing the order quantity on the purchase order line by the tolerance percentage that you specify, and then it determines whether another quantity break is available using the larger quantity.

Creating a Purchase Order and Receiving a Volume-Based Buying Recommendation

When you create the entry for an item in the purchase order program, the JD Edwards system dynamically identifies all buying opportunities to reduce the item cost and notifies you to increase the quantity and get a better discount on the item.

In this section, you will create an entry for an item in the Enter Purchase Orders program.

1. Access the Enter Purchase Order program (P4310).
2. Click the add icon (+) to create a new purchase order.
3. In the Enter Purchase Order – Order Header program, enter the values in the following fields:
   • Branch/Plant: 43210
   • Supplier: 43422
   • Ship To: 43210

   Verify that your window looks like the following screenshot.

   

4. Click OK.

   Since we are considering the scenario of procuring sports goods, Let us place some purchase orders for buying different types of rackets.

5. In the Enter Purchase Order program, create new entries by adding the Item Number and Quantity Ordered under the Order Detail tab.

   You can see that the system auto-populates the values for other fields for this item, including Unit Cost, Extended Cost, and so on.

   When you enter the purchase order line for the item number R1041, the system displays a buying recommendation for this order quantity because this item found a volume buying adjustment within the tolerance percentage that is set in the processing option. The screenshot below displays the recommendation message for the second item in the purchase order.

   

6. To view the buying recommendation, right-click the purchase order row that is eligible for a buying recommendation and select Volume Buying.

   

7. The Enter Purchase Orders- Adjustment Type Quantity Breaks program dynamically identifies and lists all buying opportunities to reduce the item cost and notifies you to increase the quantity and get a better discount on the item. In this example, there are three adjustments listed for the selected item.

   

8. Select an adjustment quantity and click OK. You can see that the selected quantity row is highlighted.

   In this example, the item quantity is entered as 19 for the second item in the purchase order. The item was eligible for a 2% discount from the supplier. But with the new volume-based buying recommendation feature, the system displays a message stating that if you increase the item quantity to 20 (This quantity increase is within the tolerance level of 25% set in the processing option ), you are eligible for a 5% discount for the same item. When you select the new adjustment in the Adjustment Type Quantity Breaks program, the item quantity is automatically updated in the Purchase Order program.

   

9. Click OK. Now, in the Enter Purchase Order program, you can add more items to the purchase order or save the purchase order.

   This is an interactive way of using the purchase order entry process to receive recommendations and act on the suggestions to reduce the unit cost of the items.

Using the Volume-Based Buying Recommendation Report

There are many ways of creating a purchase order apart from using the Enter Purchase Orders program. You can create new purchase orders using electronic data interchange (EDI), Orchestrations, or Business Services (BSSV).

To know or search for the recommendations for the items ordered using the above methods, we use the Volume-Based Buying Recommendation report.

1. Navigate to EnterpriseOne Menus, Supply Management, Procurement and Subcontract Management, Daily Processing, Stock Based Purchasing, Price Management, Advanced Price and Adjustments, Advanced Pricing Reports, Periodic Processing, and Volume-Based Buying Recommendations.
2. In the Version Prompting page, select the Data Selection checkbox and click submit.

   

3. You can provide the criteria for the purchase order data that must be displayed in the report.

   In this example, the data selection criteria are specified to list the purchase orders with the Business Unit as 43210 and the Status Code for the item as 230.

   

4. Click OK.
5. Specify the printer details and click OK.

   

   The report is downloaded to the Download folder on your system.

6. Open the downloaded report from your system.

   You can see that the sample report below has information about the Supplier, Order Company, Order Number, Type, Recommendations Exists, and so on.

   

   The Recommendation column displays Yes if there is an opportunity to get more discounts on the items when you increase the quantity. You can access the respective purchase order from the Enter Purchase Order – Order Header program and make the required quantity adjustment for the item. In this way, Volume-Based Buying Recommendations report can also help you to know of a buying recommendation.

   From the above report, the purchase order “17392” is eligible for a volume-based buying recommendation. Let us view the purchase order entry and update the item quantity.

7. Access Enter Purchase Orders – Work With Order Headers program and Enter the Order Number as “17392” and click find. The order is displayed in the table.

   

8. Select the order item row in the table and right-click to access the row exit options. Click the Detail Revision option from the list.

   The Order Details program is displayed with the ability to change the values in the row.

   

9. Change the Order quantity to 1000 to receive a reduction in the unit price from 2.5000 to 2.4750.

   

   In this way, the JD Edwards Advanced Pricing system for Procurement automatically notifies you that a different level break can be achieved by increasing the quantity ordered by a specific percentage thereby, optimizing your discounts and making the purchasing process efficient with the new volume-based buying recommendations feature.