Creating purchasing companies

A purchasing company is a company that is engaged in selling property and services. Business rules for a purchase company are set up at the purchasing company level. The setup decisions that are made at the company level affect the ways in which your company conducts business.

  1. Select Purchasing Companies.
  2. Click Create.
  3. Specify this information:
    Company
    Select a company code.
    Name
    Specify the name of the purchasing company.
    Procurement Group
    Select a procurement group to assign to the purchasing company.
  4. On the Main tab, specify this information:
    Require Unit of Measure
    Select this check box if the unit of measure is required for purchase orders that are issued by the company.
    Reopen Closed PO Line
    Select this check box if a closed purchase order line can be reopened.
    Default Process Level From Header Ship To
    Select this check box if a process level default is used on a purchase order based on the purchase order header location.
    Reopen Closed PO
    Select this check box if a closed purchase order can be reopened.
    Process Level Required
    Select this check box if every purchase order that is created using this company must contain a process level.
    Allow Manual Acknowledgment
    Select this check box if purchase orders can be acknowledged manually.
    Add On Charge Close Days
    Specify the number of days after which the add on costs are canceled. Use this field if add on costs are specified on a purchase order, but are not displayed on the invoice. There must be no other activity, and all other processing must be complete.
    Purchase Order Approval Type
    Select whether approval is required.
    Delivery Tolerance Option
    Select a delivery tolerance option.
    • Use Delivery Tolerance Days: The Delivery Tolerance Days are used.
    • Disable Delivery Tolerance: The delivery dates are not updated.

    This delivery tolerance is used only if the delivery tolerance for both the purchasing vendor and the purchase from location are Default to Next Level.

    Delivery Tolerance Days
    Specify the number of days early or late that the delivery date can be when a purchase order is acknowledged. The acknowledgment date and the date tolerance range are used to update either the Early Delivery Date or the Late Delivery Date on the purchase order line.
    Last Purchase Order
    Specify the last purchase order number.
    Default Freight Terms
    Select the default freight terms.
    Manual Purchase Order Range
    Specify a purchase order range for manual purchase order numbers. If you create manual purchase orders, then you must use numbers within this range.
  5. In the PO Code section, specify this information:
    Allow Manual Entry
    Select whether the PO code can be added manually. You can select manual entry for all documents, purchase orders only, or you can select no.
    Default Method
    Select whether PO codes are used as default values from the inventory location, requesting location, vendor location, buyer group, or system.

    If you decide to use default values for PO codes from another solution, then you must indicate the PO code default value. You can use PO codes from Purchasing, Vendor Returns, Inventory Control, Requisitions, or Item and Order Billing.

  6. In the PO Issue section, select up to four header comment codes that you want to attach to the purchase order.
  7. In the System Defaults section, select an active purchase order code to default to a purchase order for purchase orders created from these modules and documents:
    • Purchase Orders
    • Vendor Returns
    • Inventory Control
    • Requisitions
    • Customer Order
    • Strategic Sourcing
  8. Use the PO Bill To

    If this tab is blank, then the inventory ship to location is used. If there is no record for the ship to location, then the purchasing ship to location is used. tab to specify contact details about the bill to address and other contact information.

  9. Use the Receiving and Returns tab to specify information about receiving and return documents for the company. Specify this information:
    Allow Receive All
    Select this check box if the receive all flag can be used in the online receiving process.
    Display Remaining Quantity
    tab to specify contact details about the bill to address andSelect this check box to display the remaining quantity on the form.
    Print Quantity
    Select this check box to print the quantity on the form.
    Last Purchase Order Receipt
    Specify the last purchase order receipt.
    Last Receipt Adjustment and Inspection
    Specify the last receipt adjustment and inspection.
    Message For Excess on Customer Order Purchase
    Select whether to create a receiver buyer message when more goods are received than were ordered. Receiver buyer messages are used if the item quantity received exceeds the quantity that was originally ordered, regardless of tolerance. This only occurs for purchase order lines that are created from Item and Order Billing orders.
    Disable Overshipment Messages
    Select this check box if your company policy is to accept all shipments. If selected, then overshipment tolerances are ignored and buyer messages are not generated for excess overshipments.
    Message For Substitutes
    Select whether a buyer message is created at receiving time to indicate that a substitute item was received.
    Undershipment Cancel Percentage
    Specify the quantity undershipment percentage for automatic back order cancellation that takes place at receiving time.
    Overshipment Percentage
    Specify the quantity overshipment percentage for receiving buyer messaging which occurs at receiving time.
    Package Tracking Level
    Select whether to use package tracking and indicate the tracking level. Valid values are, Header level, Line level, or Enable MSCM/RAD Tracking.
    Number of Labels Default=1
    Select this check box to use a default value of 1 of the Number Of Labels field is blank on Purchase Order Receiving.
    Require Reason Code On Vendor Return
    Select this check box if a reason code is required for a return document. The reason code indicates why the goods are returned.
    Return Stock to Inventory on Cancel
    For vendor returns, select whether to return items to inventory when a return line is canceled. This field is only for inventory items.
    Last Vendor Return
    Specify the number that you recognize as the last document number that is assigned to a return. The number that you specify, plus one, is assigned to the next automatically-numbered return.
  10. These tabs are available for setting up default options:
    • Cost Default. Set up default values for costs.

      You must set up Cost Default rules. The remaining tabs are optional.

    • Accounting Default

      Set up dimensions and account defaulting for requisitions and purchase orders.

    • Vendor Default

      Set up vendor defaults and vendor location defaults for requisitions and inventory replenishment by requisitions.

    • Single Document to PO

      Set up defaulting for when you are creating a single purchase order from a single requisition or customer sales order.

    • Procedure Info Output

      Configure the fields that are displayed on output for procedure information. Procedure information is processed during Purchase Order Issue.

    • Document Template

      Select a document template to use to generate purchase order documents. If the Use IDM Template field is selected, then other document templates can be selected. To upload templates, see the Contextual Applications User Guide.

  11. Click Save.