How Defaulting Rules Work

Setting up a default structure for your company saves time and increases efficiency. When you set up defaulting rules, you indicate two important things:

  • where the application is to search for things like default cost, accounting unit, vendor, and so on

  • in what order to search for them

You type a number next to each default field, indicating the order in which the application is to search.

As a whole, the application uses the following logic in searching for defaults:

  • If an entry (for cost, account, vendor, and so on) was made on the purchase order or requisition line, use that entry and do not search the defaulting structure.

  • If no line entry exists but the defaulting structure exists, search the defaulting structure to find the default.

  • If no line entry or defaulting structure exists, search based on the order in which the default fields themselves display on the PO company setup form.

Note: You can use an online program to audit any changes made to the Default Rules fields, PO Default Rules History (PO68.1).

The following sections describe where the application searches for each default.

Cost Defaults

Decide whether the search begins with the default cost, and then the vendor (cost associated with a vendor on a line), or vice versa. Next, indicate where the application is to search for an item's default cost.

Contract Created using Vendor Agreements (PO25.1).
Catalog, Quote Created using Vendor Agreements (PO25.1).
Blanket Order Created using Vendor Agreements (PO25.1).
Last Cost The last item cost that was entered for the item on a purchase order or requisition line.
Last Purchase Order The last item cost given for the item on a purchase order.
IC No Charge Flag The value in the No Charge field for an item on Item Location (IC12.1). If you selected Yes, the default cost is zero (free).

Default Accounting Unit

For requisitions, indicate where the application is to search for a default accounting unit.

Committed Agreement

Created using Vendor Agreements (PO25.1).

Note: Committed agreements are the first level of defaulting for accounting unit, account, activity, and account category.
Par Location From the requesting location's account category on Requesting Locations (RQ01.1).
Distribution Code From the blanket agreement; created using Vendor Agreement Line (PO25.6).
Template Line

Created using Procurement Templates (PO15.1).

Note: If template line is used in the default structure, the application checks whether the Use AU from RQ Loc field is set to Yes. If so, it uses the accounting unit from the requesting location. If not, it uses the accounting unit from the template line.
From Location GL Category

Created using Location (IC02.1).

The Use GL Category Issue Accounting Unit as Default field is key in determining where the application searches. If the field is set to:

  • Allow Override, the application searches at the requisition header for a default accounting unit.

  • Yes, the application uses the GL category for the From location.

  • No, the application continues searching through the defaulting structure.
Header From the requisition header created using Requisition (RQ10.1).
Requesting Location Created using Requesting Locations (RQ01.1).
Agreement Participant Created using Vendor Agreement Participants (PO25.3).

For purchase orders, indicate where the application is to search for a default accounting unit.

Committed Agreement

Created using Vendor Agreements (PO25.1).

Note: Committed agreements are the first level of defaulting for accounting unit, account, activity, and account category.
Header From the purchase order header created using Purchase Order Entry (PO20.1).
Template Line

Created using Procurement Templates (PO15.1).

Note: If template line is used in the default structure, the application checks whether the Use AU from RQ Loc field is set to Yes. If so, it uses the accounting unit from the requesting location. If not, it uses the accounting unit from the template line.
Requesting Location Created using Requesting Locations (RQ01.1).
Ship To Location GL Category

Created using Location (IC02.1).

The Use GL Category Issue Accounting Unit as Default field is key in determining where the application searches. If the field is set to:

  • Allow Override, the application searches at the purchase order header for a default accounting unit.

  • Yes, the application uses the GL category for the Ship To location.

  • No, the application continues searching through the defaulting structure.
Agreement Participant Created using Vendor Agreement Participants (PO25.3).

Default Account

For accounts, the defaulting structure is slightly different. For requisitions, indicate where the application is to search for a default account.

Committed Agreement

Created using Vendor Agreements (PO25.1).

Note: Committed agreements are the first level of defaulting for accounting unit, account, activity, and account category.
Par Location From the requesting location's account category on Requesting Locations (RQ01.1).
Distribution Code From the blanket agreement; created using Vendor Agreement Line (PO25.6).
Template Line Created using Procurement Templates (PO15.1).
Header From the requisition header created using Requisition (RQ10.1).
Requesting Location Created using Requesting Locations (RQ01.1).
From Location GL Category

Created using Location (IC02.1).

The Use GL Category Issue Accounting Unit as Default field is key in determining where the application searches. If the field is set to:

  • Allow Override, the application searches at the requisition header for a default account.

  • Yes, the application uses the GL category for the From location.

  • No, the application continues searching through the defaulting structure.
Item Master Created using Item Master (IC11.1).
Agreement Line Created using Vendor Agreement Line (PO25.6).

For purchase orders, indicate where the application is to search for a default account.

Committed Agreement

Created using Vendor Agreements (PO25.1)

Note: Committed agreements are the first level of defaulting for accounting unit, account, activity, and account category.
Header From the purchase order header created using Purchase Order Entry (PO20.1).
Template Line Created using Procurement Templates (PO15.1).
Requesting Location Created using Requesting Locations (RQ01.1).
Ship To Location GL Category

Created using Location (IC02.1).

The Use GL Category Issue Accounting Unit as Default field is key in determining where the application searches. If the field is set to:

  • Allow Override, the application searches at the purchase order header for a default account.

  • Yes, the application uses the GL category for the Ship To location.

  • No, the application continues searching through the defaulting structure.
Item Master Created using Item Master (IC11.1).
Agreement Line Created using Vendor Agreement Line (PO25.6).

Default Activity

For requisitions, indicate where the application is to search for a default activity.

Committed Agreement

Created using Vendor Agreements (PO25.1).

Note: Committed agreements are the first level of defaulting for accounting unit, account, activity, and account category.
Header From the requisition header created using Requisition (RQ10.1).
Template Line Created using Procurement Templates (PO15.1).
Requesting Location Created using Requesting Locations (RQ01.1).
Agreement Line Created using Vendor Agreement Line (PO25.6).

For purchase orders, indicate where the application is to search for a default activity.

Committed Agreement

Created using Vendor Agreements (PO25.1).

Note: Committed agreements are the first level of defaulting for accounting unit, account, activity, and account category.
Header From the purchase order header created using Purchase Order Entry (PO20.1).
Template Line Created using Procurement Templates (PO15.1).
Agreement Line Created using Vendor Agreement Line (PO25.6).

Default Account Category

For requisitions, indicate where the application is to search for a default account category.

Committed Agreement

Created using Vendor Agreements (PO25.1).

Note: Committed agreements are the first level of defaulting for accounting unit, account, activity, and account category.
Template Line Created using Procurement Templates (PO15.1).
Header From the requisition header created using Requisition (RQ10.1).
Requesting Location Created using Requesting Locations (RQ01.1).
Agreement Line Created using Vendor Agreement Line (PO25.6).
GL Hierarchy From the general ledger hierarchy created using Company (GL10.1).

For purchase orders, indicate where the application is to search for a default account category.

Committed Agreement

Created using Vendor Agreements (PO25.1).

Note: Committed agreements are the first level of defaulting for accounting unit, account, activity, and account category.
Template Line Created using Procurement Templates (PO15.1).
Header From the purchase order header created using Purchase Order Entry (PO20.1).
Agreement Line Created using Vendor Agreement Line (PO25.6).
GL Hierarchy From the general ledger hierarchy created using Company (GL10.1).

Default Vendor

For requisitions, indicate where the application is to search for a default vendor.

Vendor Agreement Created using Vendor Agreements (PO25.1).
Item Source Created using Replenishment Setup (IC12.2).
Header From the requisition header created using Requisition (RQ10.1).

For purchase orders, indicate where the application is to search for a default vendor for replenishment using Replenishment by Requisition PO's (IC142).

Item Source Created using Replenishment Setup (IC12.2).
Vendor Agreement Created using Vendor Agreements (PO25.1).

The defaulting structure does not affect the par/cart location process. If you are using a par/cart location and the items are on the par/cart, the application uses the information defined on Cart, Par Location Item Detail (IC81.2).

Default Vendor Purchase From

For requisitions, indicate where the application is to search for a default vendor purchase from.

Vendor Agreement Created using Vendor Agreements (PO25.1).
Item Source Created using Replenishment Setup (IC12.2).
Header From the requisition header created using Requisition (RQ10.1).

For purchase orders, indicate where the application is to search for a default vendor purchase from for replenishment using Replenishment by Requisition PO's (IC142).

Item Source Created using Replenishment Setup (IC12.2).
Vendor Agreement Created using Vendor Agreements (PO25.1).

The defaulting structure does not affect the par/cart location process. If you are using a par/cart location and the items are on the par/cart, the application uses the information defined on Cart, Par Location Item Detail (IC81.2).