Purchasing prerequisite setup

These solutions regularly interface with and affect Purchasing.

For setup instructions, see the Financials Setup and Administration Guide.

Solution	Description
Currency	Define currencies and exchange rates.
Global Ledger	Define organizational structure and accounting dimensions.
Cash Management	Define banks and bank accounts, payment types and formats.
Terms	Define terms codes.
Payables	Define vendor groups, Payables companies, hold codes, and vendors.
Inventory Control	Define item groups, comments, inventory companies and locations, Purchasing classes, and inventory location account groups.
Match	Define matching companies, receipt accrual accounts, receipt write offs, vendor returns.
Tax	Define your tax codes.

Purchasing interfaces with Inventory Control and Payables. For example, Purchasing receives vendor information from Payables and item and reorder information from Inventory Control.

Because of this interface, changing setup options midstream in Inventory Control and Payables affects Purchasing. For example, changing an item's unit of measure when existing transactions still use the old unit of measure can cause processing issues in Purchasing. If you inactivate a vendor or vendor location in Payables, then you can no longer create a purchase order using that vendor or vendor location in Purchasing.

Companies that have larger, more complex accounting structures may want to consider setting up intercompany relationships in Global Ledger. When they are used in Purchasing, intercompany relationships can simplify setup and accounting practices. For example, a large company can set up one company as the centralized purchase order company at the PO header level. They can use individual purchase order companies at the PO line level. They can streamline setup at the PO header level and expense at the individual PO company level.

For information about setting up intercompany relationships, see the Global Ledger User Guide.