Line Groups

A line group is a bundle of items that buyers use to obtain better pricing for items. If an item is part of a line group, when that item is ordered from the supplier who offers that group, the system applies the line group price to the requisition or purchase order. For example, a buyer might want to buy a computer, mouse, monitor, and printer as a unit. In this case, the buyer still creates four line items, but makes each item part of a group. The system applies the lowest price regardless of whether the item is ordered as a standalone item or as part of the group. The system enables the use of an item multiple times on a contract, once as a standalone item and other times as part of line groups.

When you are using PeopleSoft Strategic Sourcing events, you can add lines on the same event that are not part of the line group. In addition, you can use multiple groups in a single event. When a contract is not specified on the requisition, using purchase order sourcing, the system checks for the best price available for an item. If a valid current contract with a line group exists, the system can source a requisition line using that line group price regardless of whether the item on the requisition is part of a group.

Note:

PeopleSoft Services Procurement checks for contracts during bid communications with suppliers and for contracts from work orders. The application checks that it's using the correct contract version based on the status and date.

The relationship between the item and the contract is maintained through auction award records. The system stores the purchase order or contract to which the award is made on the auction header. You can select a line group item on a requisition or purchase order by including a contract line associated with a line group.