Peoplesoft Purchasing: Activity Guide

PeopleSoft Purchasing
January 2004
ACT-672-880
Activity Guide
PeopleSoft
SCM 8.80
ACT-672-880
Restricted Rights
Copyright 2004 PeopleSoft, Inc.
All rights reserved.
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and is protected by copyright laws. No part of this document may be reproduced, stored
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that the material contained in this document is free of errors. Any errors found in this
document should be reported to PeopleSoft, Inc. in writing.
PeopleTalk and People power the internet. are trademarks; and PeopleSoft, the
PeopleSoft logo, PeopleTools, PS/nVision, PeopleCode, PeopleBooks, Vantive, Vantive
Enterprise and Red Pepper are registered trademarks of PeopleSoft, Inc. All other
trademarks mentioned in this document are the property of their respective owners.
CONTENTS
Lesson 1 Course Overview ...............................................................................................................1
Lesson 2 Business Process Overview ...............................................................................................3
Lesson 3 Establishing Business Units and Processing Options .....................................................5

Activity 1: Setting Up Installation Options .................................................................6
Activity 2: Creating a PeopleSoft Purchasing Business Unit......................................7
Lesson 4 Setting Up Basic Tables ..................................................................................................11

Activity 3: Creating Locations ..................................................................................12
Activity 4: Adding a Ship To Location .....................................................................13
Activity 5: Setting Up User Preferences ...................................................................15
Activity 6: Setting Up a Requester ................................................................................19
Activity 7: Setting Up a Buyer ......................................................................................21
Lesson 5 Determining Vendor Basics............................................................................................23

Activity 8: Adding a New Vendor.............................................................................24
Lesson 6 Setting Up Purchasing Items ..........................................................................................29

Activity 9: Creating Item Categories.........................................................................30
Activity 10: Creating a Purchasing Item .....................................................................32
Activity 11: Setting Up a Purchasing Kit ....................................................................35
Lesson 7 Creating Requisitions......................................................................................................37

Activity 12: Creating Requisitions Online ..................................................................38
Lesson 8 Sourcing Requisitions and Creating Purchase Orders ................................................43

Activity 13: Sourcing Requisitions Online..................................................................44
Activity 14: Using the Autoselect Requisitions Process .............................................45
Activity 15: Using the Sourcing Workbench Component...........................................46
Activity 16: Configuring the PO Calculations Process ...............................................47
Activity 17: Configuring the Create PO Process.........................................................49
Lesson 9 Managing Purchase Orders............................................................................................51

Activity 18: Creating or Updating POs Online ...........................................................52
Activity 19: Creating a PO by Copying from Another Document ..............................57
Activity 20: Dispatching POs......................................................................................59
Lesson 10 Demonstrating Receiving................................................................................................61

Activity 21: Creating Receipts ....................................................................................62
Lesson 11 Demonstrating the Change Order and Delete Functionality.......................................67

Activity 22: Creating Change Orders for Purchase Orders .........................................68
PeopleSoft Proprietary and Confidential iii

PeopleSoft Purchasing Contents
Lesson 12 Configuring Additional Procurement Options .............................................................71

Activity 23: Setting Up Miscellaneous Charges/Landed Costs and Templates ..........72
Activity 24: Combining a Miscellaneous Charge with Items or Purchase Orders ......74
Lesson 13 Setting Up Sales and Use Tax.........................................................................................77

Activity 25: Setting Up Sales and Use Tax .................................................................78
Lesson 14 Maintaining Price Adjustments .....................................................................................83

Activity 26: Setting up Vendor Price Adjustment Rules.............................................84
Activity 27: Setting Up PO Schedule Price Adjustments............................................86
Lesson 15 Creating and Using Purchasing Contracts....................................................................89

Activity 28: Creating a Purchasing Contract...............................................................90
Activity 29: Generating Contract Purchase Orders .....................................................92
Lesson 16 Using Commitment Control in PeopleSoft Purchasing ...............................................93

Activity 30: Enabling Commitment Control in PeopleSoft Purchasing......................94
Activity 31: Demonstrating the Budget Checking Process .........................................95
Activity 32: Using Commitment Control in PeopleSoft Purchasing...........................97
Lesson 17 Course Review ...............................................................................................................101
iv PeopleSoft Proprietary and Confidential

Lesson 1
Course Overview
This lesson has no activities.
PeopleSoft Proprietary and Confidential 1

Course Overview Lesson 1
Notes
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2 PeopleSoft Proprietary and Confidential

Lesson 2
Business Process Overview


Business Process Overview Lesson 2
Notes
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Lesson 3
Establishing Business Units and

Processing Options

Establishing Business Processes and Processing Options Lesson 3
Activity 1: Setting Up Installation Options

In this activity, you will review the activity overview and disable Commitment Control.
See Purchasing: Activity Guide, Setting Up Installation Options, Activity 1: Setting up

Installation Options.
Slide 20 _______________________________________________________________________________________________________
Activity Overview
In this activity, you disable Commitment Control to simplify the initial implementation
and transaction activities.
Disabling Commitment Control

To disable Commitment Control:
1. Select Setup Financials/Supply Chain, Install, Installation Options.
2. Click the Products link.
3. In the Enable Commitment Control section, clear the Purchasing and Payables check
boxes.
4. Click on the Installations Option tab.
5. Click on the Overall link.
6. Clear the Enable Document Tolerances check box.
7. Click the Save button.
This concludes the activity. Please do not continue.

Lesson 3 Establishing Business Processes and Processing Options
Activity 2: Creating a PeopleSoft Purchasing Business Unit

In this activity, you will review the activity overview and:
Add a new PeopleSoft Purchasing business unit.
Update an existing PeopleSoft Purchasing business unit.
See Purchasing: Activity Guide, Creating a Business Unit, Activity 2: Creating a

Purchasing Business Unit.
Slide 23 _______________________________________________________________________________________________________
Activity Overview
To begin the implementation, you must add a new business unit and update an existing
one. In this activity:
Create a new purchasing business unit for The Bike Shop, BSHOP.
Update an existing purchasing business unit, US001, to ensure consistency when

utilizing defaults.
Adding a New PeopleSoft Purchasing Business Unit

To add a new PeopleSoft Purchasing business unit:
1. Select Set Up Financials/Supply Chain, Business Unit Related, Purchasing,

Purchasing Definition.
2. Select the Add a New Value tab.
3. Enter the following information:
Page Element Value or Status

Business Unit BSHOP
4. Click Add.

Description The Bike Shop
Default SetID SHARE
Short Description Bike Shop
6. Click the Create BU button.

7. When processing is complete, enter the following information:

Process Options US001
Location US001
Billing Location US001
Close Days 0 (zero)
Cancel Days 0 (zero)
Currency USD (United States Dollar)
PS/GL Select
GL Unit US001
AM Unit US001
Capitalize Select
AP Unit US001
Accrue SUT for ERS Orders Select
SS Unit US001
Rate Type CRRNT
8. Click the Matching link.
9. Select the Requires Matching check box.
10. Enter Standard in the Matching Rule field.
11. Click OK.
12. Access the Business Unit Options page, and enter the following information:

PO Item Vendor Security Option No Edit Required
PO Change Order Template Standard
Req Change Order Options A
Req Change Order Template Approved
Origin ONL
Receipt Date Adjust 30
DUNS Number Blank
Receipt Allocation Type FIFO
PO Price EDIT Warning
% Unit Price Tolerance Over 15
% Unit Price Tolerance Under 95

Lesson 3 Establishing Business Processes and Processing Options
13. Select these check boxes:
Allow Multicurrency Reqs.
Allow Multicurrency Pos.
Allow BU Item Attributes.
Allow Receipt Load Cascade.
Accrue PO Receipts.
Accrue non-PO Receipts.
Separate Inspection.
Allow Curr UOM Conv Rate.
RTV Adjust Source.
RTV Adjust Fees.
14. Clear these check boxes:
Allow Liquidate by Qty.
Tax Exempt.
RTV Reopen PO.
Allow PO Deletion.
Allow Requisition Deletion.
15. In the Automatically Approve Change Requests group box, select Buyer Accepted
POA Sources and All Other Sources.
16. Access the PO Approvals Options page.
17. Ensure that the PO Amount Approval Needed and PO ChartField Approval Needed
check boxes are clear.
18. Access the Req Approvals Options page.
19. Ensure that the Req Amount Approval Needed and Req ChartField Approval Needed
check boxes are clear.
20. Access the Document Numbering page.
21. Verify that all check boxes are selected.
22. Click Save.
Updating an Existing PeopleSoft Purchasing Business Unit

To update existing purchasing business unit, US001:
1. Click the Return to Search button.


Business Unit US001
3. Click Search.

SS Unit US001
Close Days 0
Cancel Days 0
5. Click the Matching link.
6. Select the Require Matching check box.
7. Enter Standard for the Matching Rule field.
8. Click OK.
9. Click Save.

Lesson 4
Setting Up Basic Tables

Setting Up Basic Tables Lesson 4
Activity 3: Creating Locations

In this activity, you will review the activity overview and add a new location called
Sydney.
See Purchasing: Activity Guide, Setting Up Basic Tables, Activity 3: Creating

Locations.
Slide 29 _______________________________________________________________________________________________________
Activity Overview
Your organization is opening a facility in Sydney, Australia. In this activity, you will add
a new location called Sydney.
Adding a New Location called SYDNEY

To add a new location called Sydney:
1. Click the Add button.
2. Enter the Location Code SYDNEY, and then click the Add button.

Effective Date Todays date
Status Active
Description Sydney, Australia
Prefix 61
Phone 294130000
Country AUS (Australia))
Address 1 L13, 475 Victoria Avenue
City Chatswood
Postal 2067
State NSW (New South Wales)
In City Limit Selected
4. Click the Save button.

Lesson 4 Setting Up Basic Tables
Activity 4: Adding a Ship To Location

In this activity, you will review the activity overview and add a new ship to location.
See Purchasing: Activity Guide, Setting Up Basic Tables, Activity 4: Setting up a Ship
To Location.
Slide 31 _______________________________________________________________________________________________________
Activity Overview
Because you plan to have your vendor ship goods to your Australian site in Sydney, in
this activity, you will add a new ship to location, also identified as Sydney.
Adding a New Ship To Location

To add a new ship to location:
1. Select Set Up Financials/Supply Chain, Product Related, Procurement Options,

Purchasing, Ship To Location.
2. Select Add a New Value tab.

SetID SHARE
Ship To SYDNEY
4. Click Add.

Effective Date Todays Date
Status Active
Description Sydney Australia
Short Description Sydney
Receiving Business Unit BSHOP
6. Click the Sales/Use Tax link.


Sales and Use Tax Applicability Exempt
8. Click OK.
9. Click Save.

Activity 5: Setting Up User Preferences

1. Update user ID, VP1, to enable business unit, BSHOP, to appear by default.
2. Update user, POA1, to enable business unit, BSHOP, to appear by default.
See Purchasing: Activity Guide, Setting Up Basic Tables, Activity 5: Setting Up User
Preferences.
Slide 34 _______________________________________________________________________________________________________
Activity Overview
In this activity, you will update two users that are active in your new organization. You
want these users default values to populate transaction fields in the newly created
business unit:
Set up user ID VP1 so the PeopleSoft Purchasing business unit, BSHOP,

automatically populates in the new transactions.
Set up user ID POA1 so the PeopleSoft Purchasing business unit, BSHOP,

automatically populates in the new transactions.
Updating User, VP1, to Enable Business Unit, BSHOP, to Appear by Default

To update user, VP1, to enable business unit, BSHOP, to appear by default:
1. Select Set Up Financials/Supply Chain, Common Definitions, User Preferences,

Define User Preferences

User ID VP1
3. Click Search.
4. Click the Overall Preferences link.

Name Your own name
Business Unit BSHOP
6. Select the User Preferences tab.

7. Click the Procurement link.
8. Receiver Setup.

10. Click OK.
11. Click Save.
Updating User, POA1, to Enable Business Unit, BSHOP, to Appear by Default

To update user, POA1, to enable business unit, BSHOP, to appear by default:

User ID POA1
3. Click Search.
4. Click the Overall Preferences link.

Name Kim Lee
Business Unit BSHOP
Set ID SHARE
6. Select User Preferences tab.
7. Click the Procurement link.

Location US001
Origin ONL
Department 13000
Ship To Location US001


Requester POA1
9. Click the Contract Process link.

Contract Status Approved
11. Select Approve Contracts.
12. Select Enter Contracts.
13. Select Hold Contracts.
14. Select Close Contracts.
15. Select Allow PO Contract Releases.
16. Click OK.
17. Click the Request for Quote Process link.
18. Select Approve RFQ.
19. Select Hold RFQ.
20. Select Enter RFQ.
21. Select Close RFQ.
22. Select Define Dispatch Vendors.

RFQ Status Approved
24. Click OK.
25. Click the Receiver Setup link.
26. Select Interface Receipt


28. Click OK.
29. Click the Requisition Authorization link.
30. Select Approval.
31. Select Cancel.
32. Select Delete.
33. Select Close.
34. Select Can Work Approved Reqs (can work approved requisitions).
35. Select Full Authority for All Requesters.
36. Click OK.
37. Click the Purchase Order Authorizations link
38. Select Approval.
39. Select Cancel.
40. Select Delete.
41. Select Close.
42. Select Can Work Approved POs.
43. Select Full Authority for All Buyers.
44. Click OK.
45. Click Vendor Processing Authority link.
46. Select Authority to Enter.
47. Select Authority to Approve.
48. Select Authority to Inactivate.
49. Click OK.
50. Click Save.

Activity 6: Setting Up a Requester

1. Update requester, VP1, with location and ship to location: Sydney.
2. Update requester, POA1, with the new default values for location and ship to
location: Sydney.
See Purchasing: Activity Guide, Setting Up Basic Tables, Activity 6: Setting Up a

Requester.
Slide 36 _______________________________________________________________________________________________________
Activity Overview
Because you have two user IDs that are creating requisitions, update the requesters to
enable location and ship to location values to populate automatically in future
transactions.
Update requester, VP1, with location and ship to location: Sydney.
Update requester, POA1, with the new default values for location and ship to
location: Sydney.
Updating Requester, VP1, with Location and Ship to Location: Sydney

To update requester, VP1, with location and ship to location: Sydney:
1. Select Setup Financials/Supply Chain, Product Related, Procurement Options,

Purchasing, Requester Setup.

Requester Name VP1
3. Click Search.

Ship To SYDNEY
Location SYDNEY
Currency USD
GL Unit (general ledger unit) US001
Account 630000
Department 50000

5. Click Save.
Updating Requester, POA1, with the New Default Values for Location and Ship to
Location: Sydney
To update requester, POA1, with the new default values for location and ship to location,
Sydney:

Requester POA1
3. Click Search.

Ship To SYDNEY
Location SYDNEY
Currency USD
GL Unit US001
Account 630000
Department 50000
5. Click Save.

Activity 7: Setting Up a Buyer

In this activity, you will review the activity overview and update the buyer, VP1, with a
default value for the ship to location Sydney.
See Purchasing: Activity Guide, Setting Up Basic Tables, Activity 7: Setting Up a

Buyer.
Slide 38 _______________________________________________________________________________________________________
Activity Overview
You must update the buyer, VP1, so that the ship to location value, SYDNEY,
automatically appears on the purchase order and simplifies data entry.
Update Buyer, VP1, with a Default Value for the Ship to Location: Sydney
To update the buyer, VP1, with a default value for the ship to location Sydney:

Purchasing, Buyer Setup.

Buyer Name VP1
3. Click Search.

Ship To SYDNEY
Location SYDNEY
5. Click Save.
This concludes the activity. Do not continue.

Notes
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Lesson 5
Determining Vendor Basics

Determining Vendor Basics Lesson 5
Activity 8: Adding a New Vendor

1. Add a vendor by using defaults.
2. Set up a second vendor by entering details.
See Purchasing: Activity Guide, lesson 5, Entering Vendor Basics, Activity 8: Adding
a New Vendor.
Slide 49 _______________________________________________________________________________________________________
Activity Overview
During the initial implementation of PeopleSoft Purchasing, your purchasing department
wants to use two vendors that are not currently in the system. You are the only person
who is trained to add vendors. In this activity, you add two new vendors for the buyers to
use. Here is what you need to do:
1. Set up the first vendor, Heads-Up Helmets, and make the data entry as simple as
possible.
Accept the default values from the hierarchy when possible. The company is located
in New York, New York.
2. Set up the second vendor, Cycle Classics Company, with additional detail.
The company is located in Dallas, Texas.
Add a Vendor by Using Defaults
To set up a vendor by using defaults:
1. Select Vendors, Vendor Setup and Maintenance, Vendor Information.
2. Select the Add a New Value tab.

Vendor ID NEXT
Persistence Regular
4. Click Add.

Vendor Short HEADS-UP

Lesson 5 Determining Vendor Basics

Vendor Name 1 Heads-Up Helmets
VAT Registration Cleared
Open for Ordering Selected
6. Select the Address tab.

Description Headquarters
Address1 445 Park Avenue
City New York
Postal 10022
State NY
8. Select the Location tab.

Location HQ
10. Click Save.
What is the new vendor ID?
Setting Up a Second Vendor by Entering Details
To set up a second vendor by entering details:
1. Click Add.

Vendor NEXT
Persistence Regular
3. Click Add.


Short Name CCC
Name1 Cycle Classics Company
VAT Registration Cleared
Open for Ordering Selected
5. Select the Address tab.

Country USA
Address1 100 East Street
City Dallas
Postal 75201
State TX
Type Business
Prefix 972
Telephone 2955000
Add a second address for remit-to address:
7. In Vendor Address group box, click the Add a New Row button.

Description Remit
Country USA
Address1 PO Box 3232
City San Francisco
Postal 94114-3232
State CA
9. Select the Contacts tab.

Description Sales Manager

Lesson 5 Determining Vendor Basics

Status Sales
Name Pat Jones
Email pj@aol.com
11. Select Location tab.

Location HQ
Desc Headquarters
Default Selected
13. Click Save.
14. Record the new vendor ID?

Notes
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Lesson 6
Setting Up Purchasing Items

Setting Up Purchasing Basics Lesson 6
Activity 9: Creating Item Categories

In this activity, you will review the activity overview and create a new item category
called TIRES.
See Purchasing: Activity Guide, Setting Up Item Basics Activity 9: Creating Item
Categories.
Slide 54 _______________________________________________________________________________________________________
Activity Overview
Since the company is going to begin purchasing tires and wheels, you want to set up an
appropriate item category.
In this activity, create a new Item Category called TIRES.
Creating a New Item Category

To create a new item category:
1. Select Items, Define Controls, Item Categories,
2. Select Add a New Value.

Category Code TIRES
4. Click Add.

Market Code User Def
Effective Date Todays date
Status Active
Description Tires and Wheels
Short Description Tires
Primary Buyer VP1
Lead Time Days 1
Currency Code USD
Account 130000

Lesson 6 Setting Up Purchasing Basics
6. Select the Category Definition 2 tab.
7. Click the Expand All link.

Unit Price Tolerance Over 25.0
Unit Price Tolerance Under 999999.99
% Unit Price Tolerance Over 10
% Unit Price Tolerance Under 50
Ext Price Tolerance Over 2500.00
Ext Price Tolerance Under 99999999.99
% Ext Price Tolerance Over 10
% Ext Price Tolerance Under 50
Receiving Required Select
Reject Quantity over Tolerance Select
Quantity Received Tolerance % 30
Party Quantity Recvd/Warn
Sourcing Method Basic
Early Ship Reject Days 14
Close PO Under Quantity Percent Tolerance 10
9. Click Save.
10. Click the Yes button when this message appears: Do you want to update item
catalogs with your category changes?
11. Enter the following value information:

Parent Category ALLITEMS
12. Click Catalog Refresh.
13. Click Sel for ALL_PURCHASE_ITEMS.
14. Click OK.

Activity 10: Creating a Purchasing Item

Add one new item, ATW1, by using default data from the category.
Add a second item, ATW2, entering details.
See Purchasing: Activity Guide, Setting Up Item Basics, Activity 10: Creating a
Purchasing Item.
Slide 60 _______________________________________________________________________________________________________
Activity Overview
The manufacturing group requests two new items that it intends to purchase from outside
suppliers. In this activity, create these new items:
The first item, ATW1, illustrates simple entry by accepting as much default
information as you can.
The second item, ATW2, illustrates some of the flexibility of the PeopleSoft system.
Adding One New Item, ATW1, Using Default Data From the Category
To add one new item, ATW1, using default data from the category:
1. Select Items, Define Items and Attribute, Define Item.
2. Select Add a New Value

Item ID ATW1
4. Click Add.

Description Road Tire
Current Status Pending Approval
Standard UOM EA
Default Category Tires
Inv Item Cleared

6. Click Save.
7. Click the Purchasing Item Attributes link.
8. Enter 20.00 in the Standard Price field.
9. Select the Item Vendor tab.
10. Enter Vendor ID 0000000045 (Heads-Up Helmets).
11. Click OK.
Adding a Second Item, ATW2, Entering Details

To add the second item, ATW2, entering details:
1. Click Add.

Item ID ATW2
3. Click Add.

Description Off Road Tire
Current Status Pending Approval
Standard UOM EA
Category TIRES
Inv Item Cleared
5. Click Save.
6. Click the Purchasing Item Attributes link.

Standard Price 19.00
Lead Time 2
Primary Buyer VP1
Account 131000

8. Select the Item Vendor tab and enter the following values:

Vendor SetID SHARE
Vendor ID 0000000045 (Heads up Helmet)
Location HQ
9. Select the Item Vendor UOM link and enter the following value:

Price 18.50
10. Click OK.
11. In the Item Vendor section, insert a new row.

Vendor SetID SHARE
Vendor ID SCM0000004 (Ernies Bike Shop)
Location Main
13. In the Item Vendor section, insert a new row.

Vendor SetID SHARE
Vendor ID 0000000046 (CCC)
Location HQ
15. Click OK.


Activity 11: Setting Up a Purchasing Kit

In this activity, you will review the activity overview and create a purchasing kit with
three components.
See Purchasing: Activity Guide, Constructing Purchasing Kits, Activity 11: Setting Up
a Purchasing Kit.
Slide 63 _______________________________________________________________________________________________________
Activity Overview
As the person in charge of implementing PeopleSoft Purchasing, you set up items to
simplify ordering for the organizations users. You create a repair kit to provide the items
that are needed to repair or replace two damaged tires. In this activity, you:
Create a purchasing kit, called REPAIRS.
Add three components:
ATW1 (quantity of 2)
10021 (quantity of 1)
10027 (quantity of 12)
Setting Up Purchasing Kits

To set up purchasing kits:
1. Select Items, Define Items and Attributes, Purchasing Kit Definition.
2. Click the Add a New Value link and enter the following information:

SetID SHARE
Kit ID REPAIRS
3. Click Add.

Effective Date <Todays Date>
Status Active
Description Tire Replace and Repair Kit
Short Description REPAIRS
Component ATW1


Qty 2
5. To add a second item to the kit, click the Add a New Row button in the Item
Configuration section.

Component 10021
Qty 1
7. To add a third item to the kit, click the Add a New Row button in the Item
Configuration group box.

Component 10027
Qty 12
9. Click Save.

Lesson 7
Creating Requisitions

Creating Requisitions Lesson 7
Activity 12: Creating Requisitions Online

Enter a simple requisition.
Copy an existing requisition.
Enter a multiple line requisition.
See Purchasing: Activity Guide, Demonstrating and Constructing Requisitions,

Activity 12: Creating Requisitions Online.
Slide 77 _______________________________________________________________________________________________________
Activity Overview
During the implementation, you must test the online requisition pages and procedures. By
logging in as user POA1, create three new requisitions for business unit BSHOP:
Enter a simple requisition, requisition 1, for item ATW2, and quantity 4.
Copy an existing requisition, requisition 2, copied from requisition 1.
Enter a multiple line requisition, requisition 3, by combining individual lines, an ad

hoc line, and a purchasing kit:
Item ID ATW1, quantity 144.
Item ID ATW2, quantity 144.
Item description bike lock, quantity 10, category CYCLING, price 39.50 USD,
vendor SCM0000004.
Kit US001-Sport, quantity 6.
Entering a Simple Requisition

To enter a simple requisition:
1. Log in as user POA1.
2. Enter the password POA1.
3. Click Sign In.
4. Select Purchasing, Requisitions, Add/Update Requisitions.

Business Unit BSHOP
Requisition ID 1

Lesson 7 Creating Requisitions
6. Click Add.
7. Enter the following information, using the Tab key to move between fields:

Item ID ATW2
Req Quantity (requisition quantity) 4
8. Save the requisition.
Copying an Existing Requisition

To create a new requisition by copying an existing requisition:
1. Click Add.

Business Unit BSHOP
Requisition ID 2
3. Click Add.
4. Click the Copy From link.

Requisition ID 1
6. Click Search.
7. Select Requisition 1.
8. Click OK.
Entering a Multiple line Requisition

To enter a multi-line requisition:
1. Click Add.


Business Unit BSHOP
Requisition ID 3
3. Click Add.
4. Click the Requisition Defaults link.
5. Select the Default radio button.

Buyer VP1
Due Date Todays Date
7. Click OK.

Item ID ATW1
Req Qty 144
9. Insert a new row.
You receive an Explorer User prompt:
10. Enter the number 3.
11. Click OK.

Item ID ATW2
Req Qty 144

Description Bike lock
Req Qty 10

Lesson 7 Creating Requisitions

Unit of Measure EA
Category Cycling
Price 39.50
14. Click the Line Details button for the Bike Lock.
15. Click Expand All.

Buyer VP1
Vendor SCM0000004
Location Main
17. Click OK.

Item ID 10000
Req Quantity 30
20. Log out of the system as POA1.
Note. For the remainder of the activities in this class, you will be logged in as VP1, and
the password is VP1.

Notes
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Lesson 8
Sourcing Requisitions and

Creating Purchase Orders

Sourcing Requisitions and Processing into Purchase Orders Lesson 8
Activity 13: Sourcing Requisitions Online

In this activity, you will review the activity overview and source a requisition online.
See Purchasing: Activity Guide, lesson 13, Sourcing Requisitions and Creating Purchase
Orders, Activity 13: Sourcing Requisitions Online.
Slide 89 _______________________________________________________________________________________________________
Activity Overview
While still in the implementation phase, you need to test a scenario in which a specific
vendor needs to be assigned to a requisition. In this activity, select vendor CCC-001 for
requisition 1.
Sourcing a Requisition Online

To source a requisition online:
1. Select Purchasing, Purchase Orders, Stage/Source Requests, Requisition Selection.
2. Enter BSHOP as the business unit.
3. Click Search.
4. Locate the row for requisition ID 1 and item ATW2 with a quantity of 4.
5. Enter CCC-001 as the short name for the vendor.
6. Select the row by clicking on the box in the Inc (include) column.
7. Click Save.
The row is now in the staging tables, and it is ready to be processed into a purchase order.

Lesson 8 Sourcing Requisitions and Processing into Purchase Orders
Activity 14: Using the Autoselect Requisitions Process

In this activity, you will review the activity overview and configure autosourcing.
See Purchasing: Activity Guide, lesson 8, Sourcing Requisitions and Creating Purchase
Orders, Activity 14: Using the Autoselect Requisitions Process.
Slide 93 _______________________________________________________________________________________________________
Activity Overview
In preparing to test your implementation, you created several requisitions. You are now
ready to test the sourcing process by using the Autoselect Requisitions process for
business unit BSHOP. In this activity, configure a new run control AUTOREQ and run
the process.
Configuring Autosourcing
To configure autosourcing:
1. Select Purchasing, Purchase Orders, Stage/Source Requests, Auto Requisition

Selection.
3. Enter the AUTOREQ as the run control ID.
4. Click Add.
5. Select the Item ID Required check box.
7. Click Run.
8. Enter PSNT as the server.
9. Click OK.
10. Note the process instance number, which you will use later in the lesson.

Activity 15: Using the Sourcing Workbench Component

In this activity, you will review the activity overview and change a setting for a staged
row.
See Purchasing: Activity Guide, Sourcing Requisitions and Creating Purchase Orders,
Activity 15: Using the Sourcing Workbench Component.
Slide 97 _______________________________________________________________________________________________________
Activity Overview
You are continuing to test the sourcing processes. You need to verify that the processing
works when it is in production. Sometimes at your organization there is adequate stock
on hand, but an employee places a new order for an item (for example, item 10000) to try
a new vendor. For the test, the requisition ID is unknown, but you know that one exists.
You analyze the database to find the row with item 10000, and then you disable it for
sourcing from on-hand inventory.
Changing a Setting for a Staged Row

To change the setting in the Sourcing Workbench component:
1. Select Purchasing, Purchase Orders, Source POs, Sourcing Workbench.
3. Click OK.
4. Locate the row with item 10000 and click the Sourcing Details button for that row.
5. Click the Item Detail link.
6. Expand the Source Transaction region.
7. Clear the Inventory Source Flag check box.
8. Click Save.

Activity 16: Configuring the PO Calculations Process

1. Run the PO Calculations process.
2. Check the Sourcing Workbench component.
Activity 16: Configuring the PO Calculations Process.
Slide 105 ______________________________________________________________________________________________________
Activity Overview
You are ready to complete the sourcing and start building the purchase orders from the
remaining requisitions in business unit BSHOP.
Running the PO Calculations Process

To run the PO Calculations process:
1. Select Purchasing, Purchase Orders, Stage/Source Requests, PO Calculations.
3. Enter CALC as the business unit.
4. Click Add.
5. In the PO Calculate Selection Criteria group box, enter BSHOP as the business unit.
6. In the PO Calculate Process Options group box, enter VP1 as the buyer.
7. Click Run.
8. Enter the PSNT as the server name.
9. Click the OK button.
Checking the Sourcing Workbench Component

Verify the status of the staging table rows after the PO Calculation process runs.
To check the Sourcing Workbench component:

Business Unit BSHOP

3. Click OK.
4. For future reference, make a note the statuses of the requisitions after the PO
Calculations process runs.

Activity 17: Configuring the Create PO Process

1. Run the Create PO process.
2. Check the Sourcing Workbench component.
Activity 17: Configuring the Create PO Process.
Slide 107 ______________________________________________________________________________________________________
Activity Overview
You are ready to finally build the purchase orders in business unit BSHOP. Complete the
final steps to build purchase orders from their requisitions. This includes:
Running the Create PO process.
Verifying the status in the Sourcing Workbench component after each process runs.
Running the Create Purchase Orders Process

To run the Create Purchase Order process:
1. Select Purchasing, Purchase Orders, Source POs, PO Creation.
3. Enter CREATE as the run control ID.
4. Click Add.
6. Select the Calculate PO Line Numbers check box.
7. Click Run.
8. Enter PSNT as the server name.
10. Make a note of the process instance ID.
Check the Sourcing Workbench Component

To check the Sourcing Workbench component:


Process Instance Insert Process Instance ID from running Create
Purchase Order process.
Business Unit BSHOP
4. Note the new purchase order IDs.

Lesson 9
Managing Purchase Orders

Managing Purchase Orders Lesson 9
Activity 18: Creating or Updating POs Online

Create a new PO online.
Create a PO using a purchasing kit.
Update an existing PO and change a line quantity.
Use the Express Purchase Order page to create a PO.
See Purchasing: Activity Guide, Managing Purchase Orders, Activity 18: Creating or
Updating Purchase Orders Online.
Slide 119 ______________________________________________________________________________________________________
Activity Overview
In this activity you will:
Create a new PO online.
Create a PO using a purchasing kit.
Update an existing PO and change a line quantity.
Use the Express Purchase Order page to create a PO.
Creating a New PO Online

To create a PO online for two items:
1. Select Purchasing, Purchase Orders, Add/Update POs.

Business Unit BSHOP
PO Number PO1
3. Click Add.

Vendor CCC-001
Buyer VP1

Lesson 9 Managing Purchase Orders
5. Click the PO Defaults link.
6. Select the Default radio button.

Due Date <Todays Date>
Account 681550
8. Click OK.

Item ATW1
PO Quantity 12
10. Click the Add Multiple Rows button.
11. Click OK.

Item ATW2
PO Quantity 12
13. Click Save.
Create a PO Using a Purchasing Kit

Create a purchase order online using a purchasing kit and item IDs:
1. Click Add.

Business Unit BSHOP
PO Number PO2
3. Click Add.


Vendor HEADS-UP-001
Buyer VP1
5. Select the Purchasing Kit Link.

Purchasing Kit ID REPAIRS
Kit Quantity 2
7. Select the OK button.
9. Click OK.

Item AM1000
PO Quantity 2
12. Click OK.

Item 10009
PO Quantity 100
14. Click the Schedule button.
15. Change the Ship To value to US010.
16. Click Save.
17. Click OK when you receive the change tax code message.
Updating an Existing PO and Changing a Line Quantity

To update an existing PO and change a line quantity:
1. Click Update/Display.
2. Select Update an Existing Value.


Business Unit BSHOP
Purchase Order ID 0000000001
4. Click Search.
5. On line 1, increase the quantity to 1000.
6. Click the Ship To/Due Date tab.
7. Enter todays date as the due date.
8. Click Save.
Using the Express Purchase Order Page to Create a PO

To use the Express Purchase Order page to create a PO:
1. Select Purchasing, Purchase Orders, Express POs.

Business Unit BSHOP
PO Number PO3
3. Click Add.

Vendor Headsup--001
Buyer VP1
4. Click the Expand All link, and enter the following information:

Item 10012
PO Quantity 12
Due Date <Todays Date>
Ship To SYDNEY
Account 131000
5. Click Save.


Activity 19: Creating a PO by Copying from Another Document

In this activity, you will review the activity overview and create a PO from a requisition.
See Purchasing: Activity Guide, Managing Purchase Orders, Activity 19: Creating a
Purchase Order by Copying from Another Document.
Slide 121 ______________________________________________________________________________________________________
Activity Overview
The engineering manager doesnt have time to wait for normal processing to take place.
She submitted a requisition (business unit BSHOP and requisition ID 3) but is impatient
for the regular process run. She needs the parts today. The new PO ID should be COPY1.
Because this is a new implementation, you are going to perform the transaction to verify
that the default data has been set up correctly and the system functions as expected.
Creating a PO from a Requisition

To create a PO from a requisition:
1. Select Purchasing, Purchase Orders, Maintain Purchase Orders.

Business Unit BSHOP
Purchase Order ID COPY1
3. Click Add.

Vendor 0000000045 (Heads-up-001)
Buyer VP1
5. Click the Copy From link.
6. In Copy From field, select Requisition.
7. Click Search.
8. Select the check box for the row with item Bike Lock.
9. Click the Copy To PO button.
10. Click Save.


Activity 20: Dispatching POs

Dispatch the POs.
Verify the PO dispatched status.
See Purchasing: Activity Guide, Managing Purchase Orders, Activity 20: Dispatching
Purchase Orders.
Slide 123 ______________________________________________________________________________________________________
Activity Overview
You are now ready to dispatch the POs for the business unit BSHOP. You plan dispatch
all POs daily:
Dispatch the POs in batch.
Verify that the PO status is Dispatched.
Dispatching the POs

To dispatch the POs in batch:
1. Select Purchasing, Purchase Orders, Dispatch POs.
3. Enter the run control ID DISPATCH.
4. Click Add.
5. Enter Business Unit BSHOP.
Note. To ensure that you dispatch all POs created since the first day of class, enter the
date of the first day of class in the From Date field, and enter todays date in the To Date
field.
6. In the Statuses to Include group box, select Approved.
7. Click Run.
8. In the Server field, select PSNT from the available options.
9. Select the PO Dispatch/Print process (POPO005).
10. Click OK.
Verifying the PO Dispatched Status

To verify the PO dispatch status:

1. Select Purchasing, Purchase Orders, Review PO Information, Purchase Orders.

Business Unit BSHOP
PO Status Dispatched
3. Click Search.
4. Verify that the POs that you entered are included in the list.
You do not need to open any POs. If a PO is not listed, notify the instructor, who can help
you to determine why a PO was not processed as expected.

Lesson 10
Demonstrating Receiving

Demonstrating Receiving Lesson 10
Activity 21: Creating Receipts

Receive a specific asset item.
Receive an inventory item from a specified purchase order.
Receive additional items.
See Purchasing, Activity Guide, Demonstrating Receiving, Activity 21: Relating How
to Receive With or Without a Purchase Order.
Slide 140 ______________________________________________________________________________________________________
Activity Overview
The items for your engineering department have arrived, along with other things, and are
waiting on the receiving dock. Since you are obviously in a hurry for these items, you
perform the transaction immediately.
In this activity, evaluate your options and determine the procedures to do the following:
Receive a specific asset item.
Receive an inventory item from a specified purchase order.
Receive additional items.
Receiving a Specific Asset Item
Note. In this part of the activity, you receive an asset item from business unit BSHOP.
To receive a specific asset item:
1. Select Purchasing, Receipts, Add/Update Receipts.

Business Unit BSHOP
Receipt Number Asset
3. Select the PO Receipt check box.

Lesson 10 Demonstrating Receiving

PO Unit BSHOP
Days +/- Today Clear (blank)
Ship To Clear (blank)
Item ID AM1000
6. Click Search.
7. Select the first row displayed.
8. Click OK.
9. Click the AM Status Pending link.
10. In the Apply To Details section, select the Assign Tag IDs.
11. In the Enter Starting field, enter 10.
12. Click Apply.
13. In the Apply To Details section, select the Assign Serial IDs.
14. In the Enter Starting field, enter 100.
15. Click Apply.
16. Click the Assign Next Asset ID button at top of page.
17. Click the Yes button when you receive the message, No row selected. Do you wish
to assign asset ids to all rows? An asset row was not selected. If YES is selected all
asset rows will be set for auto asset id assignment.
18. Click the OK button when you receive the message, Asset row(s) set for auto asset
id assignment. (10300,147). A value of AUTO-ASSIGN has been temporarily
assigned as asset id value. This value will be replaced with the next available asset id
value at receipt save time.
19. Click the OK button at the bottom of the page.
20. Click Save.
21. Click OK when you receive the early receipt warning message.
22. Click OK when you receive the message, Receipt, #####, is saved and job,
RECV_03, has been scheduled for process (Process Instance = ####). (10300,253)
Note. After you have saved, the new asset ID tag numbers are assigned.
Receive an Inventory Item From a Specified Purchase Order

To receive an inventory item from a specific purchase order:
1. Click the Add button at the bottom of the Receiver page.


Business Unit BSHOP
Receipt ID Inv
PO Receipt checkbox Select
3. Click Add.

Business Unit BSHOP
Days +/- Today Clear
Ship To Clear
Item ID 10009
5. Click Search.
6. Select the first Sel checkbox.
7. Click OK.
8. Click the INV Stat Pending link.
9. Select the Putaway Location tab.

Area AREA1
Lev1 1
11. Click OK.
12. Click Save.
13. Click OK to the early receipt warning message.
14. Click the OK button when you receive the message, Receipt, #####, is saved and
job, RECV_03, has been scheduled for process (Process Instance = ####).
(10300,253)
Receive Additional Items

To receive additional items:

Lesson 10 Demonstrating Receiving
1. Click Add.

Business Unit BSHOP
Receipt ID NEXT
3. Click Add.

Business Unit BSHOP
Days +/- Today 5
Start Date & End Date Clear
Ship To Clear
Vendor Name CCC-001
5. Click Search.
6. Click Select All.
7. Click OK.
8. Click Save.
9. To add another receiver for a different vendor, click Add.

Business Unit BSHOP
Receipt ID NEXT
11. Click Add.

Business Unit BSHOP
Days +/- Today 5


Ship To Clear
Vendor Name Heads-up-001
13. Click Search.
14. Click the Select All link.
15. Click OK.
16. Click Save.
17. Click OK to each early receipt warning message.
18. To add another receiver for a different vendor, click Add.

Business Unit BSHOP
Receipt ID NEXT
20. Click Add.

Business Unit BSHOP
Days +/- Today 30
Item ID 10000
Ship To Clear
22. Click Search.
23. Select the PO for item 10000.
24. Click OK.
25. Click Save.
26. Click OK.

Lesson 11
Demonstrating the Change Order

and Delete Functionality

Demonstrating the Change Order and Delete Functionality Lesson 11
Activity 22: Creating Change Orders for Purchase Orders

Change the Buyer on a purchase order in BSHOP.
Change the Item Quantity on the purchase order and add a new schedule
Review change history
See Purchasing: Activity Guide, Demonstrating the Change Order and Delete
Functionality, Activity 22: Creating Change Orders for Purchase Orders.
Slide 149 ______________________________________________________________________________________________________
Activity Overview
Your engineer needs you to increase the quantity of item ATW2 on PO ID PO1 in
business unit BS001. The supplier, CCC-001, told her they would be ready to deliver the
additional items later today.
The first 12 items have already been received, but you can simply access that purchase
order online and change the quantity for the item and add the new schedule.
There are also some pending change requests. Determine what is required to run the
process to update the change requests for business unit US001.
You will:
Change the Buyer on a purchase order in BSHOP.
Change the Item Quantity on the purchase order and add a new schedule
Review change history
Change the Buyer on a Purchase Order in BSHOP

To change the buyer on a purchase order in BSHOP:
1. Select Purchasing, Purchase Orders, Add/Update Purchase Orders
2. Select Find an Existing Value.

Business Unit BSHOP
PO ID PO1
4. Click Search.

Lesson 11 Demonstrating the Change Order and Delete Functionality
5. Click the Change Header (delta icon) button.
6. Enter the following value:

Buyer POS1
7. Click Cancel to overwrite existing comments.
8. Click Cancel to overwrite the sales and use tax.
9. Click Save.
Change the Item Quantity on the Purchase Order and Add a New Schedule
To change the item quantity on the purchase order and add a new schedule:
1. For line 1, enter the following value:

Qty 120
3. On Schedule 1, enter the following value:

Qty 100
5. Click OK.

Ship to US001
7. Click Save.
8. Select the Return to Main Page link.
9. Click the Dispatch button.
10. Enter the following value:

Demonstrating the Change Order and Delete Functionality Lesson 11

Server PSNT
11. Click OK.
12. Click No.
Reviewing Change History

To review the change history:
1. Select Purchasing, Purchase Orders, Manage Change Orders, Review Change

History.

Business Unit BSHOP
PO ID PO1
3. Click Search.
4. Do you see the changes to the purchase order?

Lesson 12
Configuring Additional
Procurement Options

Configuring Additional Procurement Options Lesson 12
Activity 23: Setting Up Miscellaneous Charges/Landed Costs and

Templates
Add a new miscellaneous charge, called IMPACK.
Associate the miscellaneous charge to a template
See Purchasing: Activity Guide, Describing Additional Procurement Options, Activity

23: Setting Up Miscellaneous Charges/Landed Costs and Templates.
Slide 168 ______________________________________________________________________________________________________
Activity Overview
A few of your organizations suppliers charge a fee for all items that require special
packaging for imported shipments. In this activity, you create a new miscellaneous
charge, called IMPACK and associate it with an appropriate template. The buyers use
this for import shipments.
Adding a New Miscellaneous Charge, Called IMPACK

To add a new miscellaneous charge, called IMPACK:

Charges and Costs, Misc Chg/Landed Costs Defn.

SetID SHARE
Miscellaneous Charge IMPACK
4. Click Add.

Description Special Import Packaging
Type Miscellaneous Charge Expense
Calculation Method Flat Amount
Allocation Method Matl Value

Lesson 12 Configuring Additional Procurement Options
6. Click the Merchandise Vendor Charge check box.
7. Click Save.
Associating the Miscellaneous Charge to a Template

To associate a miscellaneous charge to a template:

Charges and Costs, Misc Chg/Landed Costs Template.
2. Click Search.
3. Select Template ID IMPORT.
4. Click the Add a New Row button.
5. Enter the new charge code IMPACK.
6. Click Save.

Activity 24: Combining a Miscellaneous Charge with Items or Purchase

Orders
Associate miscellaneous charge, IMPACK, with item category TIRES.
Add purchase order for item ATW1 and verify charge is added.
See Purchasing: Activity Guide, Describing Additional Procurement Options, Activity

24: Combining a Miscellaneous Charge with Items or Purchase Orders.
Slide 170 ______________________________________________________________________________________________________
Activity Overview
All vendors are now charging the special packaging fee for tires and related items. To
simplify the application for the buyers, associate the miscellaneous charge, IMPACK, to
category TIRES.
Since your manufacturing manager requests another shipment of item ATW1

immediately, a new purchase order for a quantity of 50 needs to be added. Since you
want to ensure that the default data was set up correctly, you will create the purchase
order and verify that the miscellaneous charges is added to the PO.
Associating miscellaneous charge, IMPACK, with item category TIRES

To associate miscellaneous charge, IMPACK, with item category TIRES:
1. Select Items, Define Items and Attributes, Miscellaneous Charges.

SetID SHARE
Category TIRES
3. Click OK.
4. Enter the following information.

Category TIRES
Miscellaneous Charge IMPACK
Amount 7.00
Currency USD

Lesson 12 Configuring Additional Procurement Options
6. Click Save.
Adding Purchase Order for Item ATW1 and Verify Charge is Added
To add purchase order for item ATW1 and verify charge is added:

Business Unit BSHOP
PO ID PO1

Vendor CCC-001
Buyer VP1
Item ATW1
PO Qty 50
5. Click Schedule
6. Click the Miscellaneous Charge button to view the charge IMPACK.
7. Click OK.
8. Click Save.

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Lesson 13
Setting Up Sales and Use Tax

Setting Up Sales and Use Tax Lesson 13
Activity 25: Setting Up Sales and Use Tax

Add a new tax authority.
Add the new authority to a tax code.
Set up the ship to location with default sales and use tax.
Create a purchase order and view tax information.
See Purchasing: Activity Guide, Setting Up Sales and Use Tax, Activity 25: Setting Up
Sales and Use Tax.
Slide 179 ______________________________________________________________________________________________________
Activity Overview
During implementation setup, one of the many tables that need to be set up is the Tax
table. In this activity, you will add a newly assessed business tax for your site in New
York City. You will do the following:
Add a new tax authority called BDX.
Add the BDX authority to the NY tax code.
Set up the ship to location with default sales and use tax.
Create a purchase order and view tax information.
Adding a New Tax Authority

To add the new tax authority BDX:
1. Select Setup Financials/Supply Chain, Common Definitions, Sales and Use Tax,
Authorities.

SetID SHARE
Tax Authority BDX
4. Click Add.

Lesson 13 Setting Up Sales and Use Tax

Description Business Tax
Short Description BUS TAX
Tax Percent .5
Account 204010
6. Click Save.
Adding the New Authority to a Tax Code

To add the BDX authority to the NY tax code:
1. Select Setup Financials/Supply Chain, Common Definitions, Sales and Use Tax,
Codes.

SetID SHARE
Tax Code NY
3. Click Search.
4. Click Add a New Row.

Tax Authority BDX
6. Click Save.
Setting Up the Ship To Location with Default Sales and Use Tax
To set up the ship to location with default sales and use tax:

Purchasing, Ship To Location.

SetID SHARE
Ship To Location US001

3. Click the Correct History check box.
4. Click Search.
5. Click the Sales/Use Tax link.
6. Click Add a New Row.

Sales/Use Tax Applicability Taxable
Sales Tax NY
Use Tax NY
Category TIRES
8. Click OK.
9. Click the Vendor Order Location link.
10. Select the Apply to All Vendors check box.
11. Select the SUT flag value SALES.
12. Click OK.
13. Click Save.
Create a Purchase Order and View Tax Information

To create a purchase order for a taxable item:

Business Unit BSHOP
PO Number TAXPO
3. Click Add.

Vendor CCC-001
Buyer VP1

Lesson 13 Setting Up Sales and Use Tax

Item ATW1
PO Quantity 12
7. Change the ShipTo field value to US001.
8. Click Sched Sales/Use Tax.
9. Click OK when you receive the override the existing tax code information message.
10. Click OK.
11. Click Save.

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Lesson 14
Maintaining Price Adjustments

Maintaining Price Adjustments Lesson 14
Activity 26: Setting up Vendor Price Adjustment Rules

In this activity, you will:
Review the activity overview.
Construct a vendor price adjustment for a 5% discount.
See Purchasing: Activity Guide, Maintaining Price Adjustments, Activity 26: Setting
up Vendor Price Adjustment Rules.
Slide 184 ______________________________________________________________________________________________________
Activity Overview
One of the tasks associated with your implementation is setting up discounts that vendors
have granted your organization. Since the organization has great credit and pays invoices
on time, the vendor, Heads-up helmet, has granted a generous 5% discount on any
purchase of item ATW1. You must set up this discount before the Go-Live date. In this
activity, you will:
Set up the 5% discount so it will automatically be applied when purchasing item

ATW1 for any quantity from Heads-up-001.
Setting up Vendor Price Adjustment Rules

To set up vendor price adjustment rules:
1. Select Items, Define Items and Attributes, Price Adjustments.

Item ID ATW1
Short Vendor Name Heads-up-001
3. Click Search.
4. Enter the vendor location HQ.
5. Select the checkbox marked Dflt UOM (Default Unit of Measure).
6. Select the checkbox marked Match Ship.
7. In the ShipTo field, enter SYDNEY.
8. Click the Price Adjustments Details tab.
9. In the field titled *Adj Meth (Adjustment Method), select PCT from the selection.
10. In the field titled Pct (Percent), enter 5.0.

Lesson 14 Maintaining Price Adjustments
11. Click Save.

Activity 27: Setting Up PO Schedule Price Adjustments

Create a purchase order for vendor Heads-Up-001, add an item, and add an additional
discount for 2.00 USD per item.
Verify that all discounts are properly applied.
See Purchasing: Activity Guide, Maintaining Price Adjustments, Activity 27: Setting
up PO Schedule Price Adjustments.
Slide 186 ______________________________________________________________________________________________________
Activity Overview
Now that you have set up a discount for tire purchases from the Heads-up Helmet, you
need to verify it was set up correctly. It could cost your organization a significant amount
of money if it was set up incorrectly. Coincidently, your buyer is ready to enter a
purchase order to Heads-up who, in addition to the discount set up already, also is
granting a one-time discount for an addition 2.00 USD less than the previously
discounted price. In this activity, you will:
Create a PO online for Heads-up-001 in BU BSHOP. Enter item ATW1 for a

quantity of 10. Add an additional one-time discount for 2.00 USD less than the
previously discounted price.
Upon saving the PO, verify the discount was properly applied.
Setting up PO Schedule Price Adjustments

To set up PO schedule price adjustments:

Business Unit BSHOP
PO ID PRICE1
3. Click Add.

Vendor Heads-up-001
Buyer VP1
Item ATW1

Lesson 14 Maintaining Price Adjustments

Quantity 10
6. Click the Value Adjustment button.
7. Click the View All link.
8. Scroll to row 2.
9. Click Add a New Row button.
10. In the Type Description field, enter One-Time Discount.
11. In the Adjust Amount field, enter 2.00.
12. Click OK.
13. Click Save.
14. What was the original price? ____________________________
15. What is the new price? _________________________

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Lesson 15
Creating and Using Purchasing

Contracts

Creating and Using Purchasing Contracts Lesson 15
Activity 28: Creating a Purchasing Contract

Create a new a Purchase Order Contract
Create Contract Releases.
See Purchasing: Activity Guide, Creating Purchasing Contracts, Activity 28, Creating a
Purchasing Contract.
Slide 198 ______________________________________________________________________________________________________
Activity Overview
While technically, creating contracts would not be a typical implementation task, you
want to verify the functionality before turning over the responsibility to the end users.
The buyer tells you that the vendor, Heads-Up Helmets, has made an agreement that
50000.000 USD will be purchased over the next 6 months.
Creating a Purchasing Contract

To create a purchasing contract:
1. Select Purchasing, Procurement Contracts, Maintain Contracts.

Contract ID Headsup-001
Contract Process Option Purchase Order
3. Click Add.

Vendor HEADS-UP-001
Currency USD/CRRNT
Begin Date Today
Expire Date 6 months from today
Maximum Amount 50000.00
5. Select the Allow Open Items Reference check box.
6. Select the Price Can Be Changed On Order check box.

Lesson 15 Creating and Using Purchasing Contracts
7. Click PO Defaults link.

Buyer VPI
Ship To SYDNEY
Account 131000
9. Click OK.
10. In the Lines section, enter the following information:

Item ATW1
11. Click Save.
12. Click the Create Releases tab.

Release Options Create Order
PO Unit BSHOP
Interval Weekly
On The 2 (Monday)
Every 1 (every week)
Until 1 month from today
14. Click the Populate button.
15. Verify that the Contract Header information will override the business unit defaults.
16. Click the Stage button.
17. Click Save
18. Click the Staged Releases tab to view staged releases.

Creating and Using Purchasing Contracts Lesson 15
Activity 29: Generating Contract Purchase Orders

In this activity, you will review the activity overview and generate contract purchase
orders.
See Purchasing: Activity Guide, Creating Purchasing Contracts, Activity 29,

Generating Contract Purchase Orders.
Slide 200 ______________________________________________________________________________________________________
Activity Overview
You are still testing the system, to ensure the purchase orders complete as expected. In
this activity, you will complete the processing required to generate purchase orders from
the staged contract releases.
Generating Contract Purchase Orders

To generate contract purchase orders:
1. Select Purchasing, Purchase Orders, Stage/Source POs, PO Auto Sourcing.
2. Click the Add a New Value link.
3. Enter AUTOSOURCE and click the Add button.
4. Select the Contracts check box.
5. Enter Buyer POS1.
6. Click the Options tab.
7. In the Contract Selection Criteria section, use the drop down selection box to select
Specific Contract.
8. Enter Contract ID Heads-up.
9. Click Run.
10. Enter Server PSNT and click OK.

Lesson 16
Using Commitment Control in


Using Commitment Control in PeopleSoft Purchasing Lesson 16
Activity 30: Enabling Commitment Control in PeopleSoft Purchasing

In this activity, you will review the activity overview and enable the commitment control
feature for purchasing.
See Purchasing: Activity Guide, Using Commitment Control in PeopleSoft Purchasing,

Activity 30, Enabling Commitment Control in PeopleSoft Purchasing.
Slide 210 ______________________________________________________________________________________________________
Activity Overview
Your organization has decided to use the Commitment Control feature. In this activity,
you will enable the commitment control feature for purchasing.
Enabling Commitment Control in PeopleSoft Purchasing

To enable commitment control in PeopleSoft Purchasing:
1. Select Setup Financials/Supply Chain, Install, Installation Options.
2. Click the Products link.
3. Click the Purchasing check box.
4. Click Installation Options page tab.
5. Select the Overall link.
6. Select Enable Document Tolerance Required check box.
7. Select the Document Approval Required check box.
8. Select the ChartField value FUND_CODE.
9. Click Save.

Lesson 16 Using Commitment Control in PeopleSoft Purchasing
Activity 31: Demonstrating the Budget Checking Process

Run the budget checking process for purchase orders
Check for purchase order exceptions

Activity 31, Demonstrating the Budget Checking Process.
Slide 217 ______________________________________________________________________________________________________
Activity Overview
Again, after setting up the commitment control feature, you want to test it to verify it is
running correctly. In this activity, you will find the Budget Check process for purchase
orders to run for business unit US001. After it is complete, you will check to see if there
are any exceptions.
Running the Budget Checking Process for Purchase Orders

To running the budget checking process for Purchase Orders:
1. Select Purchasing, Purchase Orders, Budget Check.
2. Click Add a New Value.
3. Enter BUDGETCK and click the Add button.
4. Select Process Frequency Always.
5. Enter description PO Budget Check.
6. Select Unit Option Value.
7. Select Unit US001.
8. Click Run.
9. Enter the server name PSNT.
10. Click OK.
11. Check the Process Monitor to verify successful completion.
Checking for Purchase Order Exceptions

To check for purchase order budget exceptions:
1. Select Commitment Control, Review Budget Check Exceptions, Purchase Order.
2. Enter business unit US001.

3. Click Search.
Did you generate any budget check exceptions?

Activity 32: Using Commitment Control in PeopleSoft Purchasing

Set document tolerance to 10%.
Create a requisition in business unit BSHOP.
Create a purchase order in business unit BSHOP.
Run document tolerance and budget check for the new purchase order.

Activity 32, Using Commitment Control in PeopleSoft Purchasing.
Slide 218 ______________________________________________________________________________________________________
Activity Overview
In this activity, you want to run one more test on the commitment control processes. You
will set the document tolerance definition to 10%, create a purchase order in business unit
BSHOP, and then the budget checking process.
Setting Document Tolerance to 10%

To set the document tolerance to 10%:
1. Select Setup Financials/Supply Chain Management, Product Related, Procurement

Options, Document Tolerance Definition.

Set ID SHARE
ChartField: FUND_CODE
ChartField Value: F100
3. Click the Get Tolerance Definition button.
4. In the Tolerances to Apply section, in the Percent field for When Encumbrance
Exceeds Pre Encumbrance, enter 10.00.
5. Click Save.
Creating a Requisition in Business Unit BSHOP

Select Purchasing, Requisitions, Add/Update Requisitions.


Business Unit BSHOP
Requisition ID BUDCHECK
2. Click Add.
3. Enter the following information, using pressing the tTab key to move between fields:

Item ID ATW2
Req Quantity (requisition quantity) 4
4. Select the Schedule button.
5. Select the Distribution button.

Fund Code F100
7. Select OK.
8. Select the Return to Main Page link
9. Select the Budget Check button.
Creating a Purchase Order in Business Unit BSHOP

To create a purchase order in business unit BSHOP:

Business Unit BSHOP
PO ID BUDCHECK
3. Click Add.


Vendor SCM0000004
Buyer VP1
Copy From Requisition
Requisition ID Budcheck
Item ID 10002
Quantity 20
5. Click Search.
6. Select requisition line 1.
7. Select the Copy To PO button.
8. Click Save.
Running Document Tolerance and Budget Check for the New Purchase Order
To run document tolerance and budget check for the new purchase order click the Budget
Check button.
This concludes the lesson activity. Please do not continue

Notes
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Lesson 17
Course Review

Course Review Lesson 17
Notes
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Peoplesoft Purchasing: Activity Guide

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PeopleSoft Purchasing

Copyright 2004 PeopleSoft, Inc.

All rights reserved.

Lesson 1 Course Overview ...............................................................................................................1

Lesson 2 Business Process Overview ...............................................................................................3

Lesson 3 Establishing Business Units and Processing Options .....................................................5

Lesson 4 Setting Up Basic Tables ..................................................................................................11

Lesson 5 Determining Vendor Basics............................................................................................23

Lesson 6 Setting Up Purchasing Items ..........................................................................................29

Lesson 7 Creating Requisitions......................................................................................................37

Lesson 8 Sourcing Requisitions and Creating Purchase Orders ................................................43

Lesson 9 Managing Purchase Orders............................................................................................51

Lesson 10 Demonstrating Receiving................................................................................................61

Lesson 11 Demonstrating the Change Order and Delete Functionality.......................................67

PeopleSoft Proprietary and Confidential iii

Lesson 12 Configuring Additional Procurement Options .............................................................71

Lesson 13 Setting Up Sales and Use Tax.........................................................................................77

Lesson 14 Maintaining Price Adjustments .....................................................................................83

Lesson 15 Creating and Using Purchasing Contracts....................................................................89

Lesson 16 Using Commitment Control in PeopleSoft Purchasing ...............................................93

Lesson 17 Course Review ...............................................................................................................101

iv PeopleSoft Proprietary and Confidential

PeopleSoft Proprietary and Confidential 1

2 PeopleSoft Proprietary and Confidential

Business Process Overview

PeopleSoft Proprietary and Confidential 3

4 PeopleSoft Proprietary and Confidential

Establishing Business Units and

PeopleSoft Proprietary and Confidential 5

Activity 1: Setting Up Installation Options

See Purchasing: Activity Guide, Setting Up Installation Options, Activity 1: Setting up

Disabling Commitment Control

1. Select Setup Financials/Supply Chain, Install, Installation Options.

2. Click the Products link.

4. Click on the Installations Option tab.

5. Click on the Overall link.

6. Clear the Enable Document Tolerances check box.

7. Click the Save button.

This concludes the activity. Please do not continue.

6 PeopleSoft Proprietary and Confidential

Activity 2: Creating a PeopleSoft Purchasing Business Unit

Add a new PeopleSoft Purchasing business unit.

Update an existing PeopleSoft Purchasing business unit.

See Purchasing: Activity Guide, Creating a Business Unit, Activity 2: Creating a

Update an existing purchasing business unit, US001, to ensure consistency when

Adding a New PeopleSoft Purchasing Business Unit

1. Select Set Up Financials/Supply Chain, Business Unit Related, Purchasing,

2. Select the Add a New Value tab.

3. Enter the following information:

Page Element Value or Status

5. Enter the following information:

Page Element Value or Status

6. Click the Create BU button.

PeopleSoft Proprietary and Confidential 7

7. When processing is complete, enter the following information:

Page Element Value or Status

8. Click the Matching link.

9. Select the Requires Matching check box.

10. Enter Standard in the Matching Rule field.

11. Click OK.

Page Element Value or Status

8 PeopleSoft Proprietary and Confidential

13. Select these check boxes: