SageX3 Purchase Fundamentals

Sage University Sage ERP X3 Purchasing Series: Fundamentals

Sage North America certified course curriculum

Sage ERP X3 Purchasing Series: Fundamentals CERTIFIED STUDENT CURRICULUM SAGE UNIVERSITY

Curriculum Version 3.0

NOTICE This document and the Sage ERP X3 software may be used only in accordance with the accompanying Sage ERP X3 End User License Agreement. You may not use, copy, modify, or transfer the Sage ERP X3 software or this documentation except as expressly provided in the license agreement. Visit our website at www.SageU.com, or call 1-800-944-4299 to learn about training classes that are added throughout the year. Information in this document is intended solely as general information with respect to common business issues and is not to be construed as professional advice. It is always best to consult a tax or accounting professional for all tax and account related questions. THE INFORMATION HEREIN IS PROVIDED “AS IS” AND ALL WARRANTIES ARE EXPRESSLY DISCLAIMED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY: OF MERCHANTABILITY; OF FITNESS FOR ANY PARTICULAR PURPOSE; OF NON-INFRINGEMENT OF ANY PROPRIETARY RIGHT OF ANY THIRD PARTY IN ANY COUNTRY; OTHERWISE ARISING OUT OF ANY PRODUCT, PROPOSAL, SPECIFICATION OR SAMPLE; AND ANY WARRANTY THAT THE DOCUMENT IS ERROR FREE. No license, express, implied, by estoppel or otherwise, to any intellectual property right is granted by this document. Sage Software may make changes to the information in this document at any time, without notice. Recipient is solely responsible for assessing the suitability of the information and assumes all risk of use. © 2014 Sage Software, Inc. All rights reserved. Sage , the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc., or its affiliated entities. All other trademarks are the property of their respective owners. 08/2014

Purchasing Series - Fundamentals

Contents Welcome and Introduction .................................................................... 1

Purchasing Overview............................................................................. 2 Key Concepts ........................................................................................ 4 Setting Up Purchasing ............................................................................ 5

Purchasing Site ...................................................................................... 6 Business Partners................................................................................... 7 Supplier Category................................................................................ 12 Suppliers ............................................................................................. 18 Products .............................................................................................. 21 Sales & Purchasing Taxes.................................................................... 24 Purchasing Price ................................................................................... 31

Purchase Pricing .................................................................................. 32 Structures ............................................................................................ 33 Reasons............................................................................................... 35 Setup Options ...................................................................................... 36 Activation............................................................................................ 40 Price Entry .......................................................................................... 41 Price Search ........................................................................................ 43 Purchasing Products ............................................................................ 44

Purchase Requests ............................................................................... 45 Request for Quotes .............................................................................. 51 Planning and Ordering ......................................................................... 55 Buyer Planning .................................................................................... 59 Purchase Orders .................................................................................. 61 Prepayments ........................................................................................ 68 Contract Orders ................................................................................... 69 Back-to-Back Orders ........................................................................... 74 Purchasing Signature Management..................................................... 76

Purchasing Signature Management Overview ...................................... 77 Assignment Rules................................................................................ 79 User Assignment ................................................................................. 83 Delegated Users .................................................................................. 86 Sage North America Certified Student Course Curriculum - Version 3.0 Copyright © 2014 Sage, Inc. All Rights Reserved.

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Manage Signatures .............................................................................. 88 Workflow Monitor .............................................................................. 89 Standard Workflow Rules – PR Signatures.......................................... 91 Standard Workflow Rules – PO Signatures........................................ 101 Standard Workflow Rules – Open Orders Signatures......................... 105 Reports & Inquiries ........................................................................... 109

Reports.............................................................................................. 110 Inquiries ............................................................................................ 111 Summary........................................................................................... 112

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Sage North America Certified Student Course Curriculum - Version 3.0 Copyright © 2014 Sage, Inc. All Rights Reserved.


Lesson 1 Welcome and Introduction Welcome to the Sage ERP X3 Purchasing Series - Fundamentals training class. This course is divided into discussion of concepts, activities, and a review. The information in this document is intended to provide you with information on the purchasing process including: purchase requests, request for quotes, purchase orders, receipts, and invoices. This course is designed to provide you with knowledge of: !

How to define settings for such items as suppliers, and products to be used in the Purchasing module.

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How to set up and define the purchase pricing information includes the structure, reasons, and parameters. Additionally, you will learn how to enter price information and active price lists.

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How to enter a request for a quote as well as the various types of orders including purchase orders, contract orders, direct orders, and inter-site/inter-company orders.


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Purchasing Overview Purchasing is used to manage the purchasing process for products and services. Purchases normally pass through a sequence of request, order, receipt, and invoice. Purchases can be for stocked or non-stock managed products. You can receive products that were not originally on a purchase order. You can enter invoices for not-stock managed products such as an electric bill without first creating a purchase order or entering a receipt.

Purchase Step/Flow Purchasing provides you with the flexibility to determine which purchase step or flow best fits your company’s needs. For example, you can choose to begin with a purchase request followed by a request for a quote and an actual purchase order, or simply enter the purchase order eliminating the first two steps in the purchasing process.

Flow 1 – This represents the most complete flow. It crosses all purchase functions, starting with purchase request to the invoice. Flow 2 – Similar to flow 1 without the request for a quote. This flow is an example of a company that has requested from the supplier all the quotes for a specific period and the price list is generated. There is no need for new price and condition requests since it is already settled. Flow 3 – This is an example of when the management of internal requests is not required. When a purchase need is seen, the purchase order is created.

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Purchasing Overview (continued) Flow 4 – This flow can be a compliment of the flow 3, when the invoice arrives before the products/services. It does not mean a receipt is not done, it simply allows for it to be done at a later time.

- This flow can also represent where no need for receipts is given. For example, the product is not managed in stock and you don’t need to trace when the service or product has arrived in the company. Flow 5 – This flow starts at the receipt step. This is generally used in cases where you do not manage purchase orders. Although not recommended, it can be used in cases where a product is received that was not ordered but you decide to keep the product. Flow 6 – This flow starts at the invoice step. This is only used when there is no stock management performed in a company.


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Key Concepts Before defining accounting information in Sage ERP X3, it is important you understand how all the various accounting settings and parameters defined impact a company and site created. When defining information, you are using a combination of various functions on the Setup and Common data blocks. You should always review settings defined in functions such as Parameter values (ADPVAL) in the Setup > General parameters block as these settings can impact what information is defined and required in a specific function.

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Lesson 2 Setting Up Purchasing In this lesson, information necessary for using Purchasing is discussed. Before starting the purchase process for a new company, you must first ensure specific information is defined including purchasing sites, suppliers, and product information. The topics in this lesson include: !

Purchasing Site

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Business Partners

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Supplier Category

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Suppliers

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Products

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Sales & Purchasing Taxes


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Purchasing Site Before defining information, you must define at least one site as a Purchasing site to enter purchasing information. This is done by selecting the Purchasing check box on the Details tab in the Sites (GESFCY) function in the Setup > Organizational structure block.

To purchase products, you must select a site that is defined as a Stock site. If you want to create supplier invoices or credit memos, the Purchasing site must be either defined as a financial site or linked to a financial site. Note: You can define a single site as a warehouse, sales, purchasing, and financial site at the same time.

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Business Partners A business partner is an entity that can be a supplier, customer, sales rep, carrier, etc. Business partners can have a specific role or can play multiple roles. For example, you can define a business partner as both a customer and supplier at the same time.

- In the example above, there is a single business partner record, which is used to provide the grouped common identification data, and two additional records defining the customer and supplier specific information. Regardless of whether a BP has multiple roles or a single role, you must define information in both the BPs function and the entity specific functions. Use BPs (GESBPR) in the Common data > BPs block to create a BP record.

- It is important to note the system automatically generates a BP record when creating customers, suppliers, carriers, sales reps, etc.


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Business Partners (continued) You can optionally select either a customer category or a supplier category at the Category field.

- The category selected provides default settings for the record you are creating. - Defining customer or supplier categories is discussed in a later topic. The BP code identifies the BP. You can manually enter to create a new BP record or select an existing record. The short title entered is used some pages and reports when there is not enough space to view the long title. The code selected at the Language field defines the language of the business partner. The Mailing prohibited check box applies to the CRM module which handles mass mailings. If selected, the customer will not receive e-mails generated by CRM. The Intersites section is used to identify the BP record as an intersite/intercompany business partner used for intercompany stock transfers between sites. Defining this information is discussed in the Distribution Beyond the Basics course. The Roles section identifies the roles associated with the BP record.

- The Customer, Supplier, Carrier, Sales Rep, and Prospect check boxes are for display purposes only and are automatically selected based on additional information defined for the BP in the appropriate function.

- For example, the Customer check box is selected if you define information for the BP in the Customers function.

- You can define additional roles of Public sector, Miscellaneous BP, Service supplier, Service Caller, and Licensor.

Addresses Tab Use the Addresses tab to enter the different business partner addresses. The entry of at least one address is mandatory. Each address is identified by a code, entered in the Address field in the Addresses section.

- You can either select an existing address in this section or use the next available open row to define a new address. When several addresses are associated with a business partner, one address must be defined as the default address.

- This is done by selecting the Default address check box. During the entry of the postal code, the city and region (state) are displayed automatically. This is based on information defined in the Postal codes function in the Common data > Common tables block.

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Business Partners (continued) Acct Tab Use the Acct tab to identify information used by accounting for consolidation and any information required for European accounting. Also defined on this tab is an access code that is used to filter the business partners available in the miscellaneous accounting reports. The fields available are based on previous selections made including the role of the BP.

- For example, the Accounting code and Item type for expense account fields are only accessible if Miscellaneous is selected as a role on the Identity tab.

Bank ID Number Tab Use the Bank ID Number tab to record the bank identities as well as the associated bank domiciles. The entry format for these Bank ID numbers depends on the country in which the bank resides. This entry format is associated with each country code in the corresponding table. The information related to international transfers is accessible by the record mode. The notion of an intermediary bank is often used in commercial relationships with non-western countries at the request of the business partners or issuing banks. The Pref IBAN field defines the account for international banking exchanges. -

It is comprised of four characters, which correspond to the prefix entered, followed by the national identification of the account (the bank ID number entered).

- The entire code can have a maximum of 34 characters. For example, the first two characters designate the country, followed by two characters that constitute the control key of the IBAN code as a whole, followed by the last characters, whose length varies from one country to another, indicating the national identifier of the account.

- The IBAN code used for international bank transfers guarantees for the sender and the bank that the identification of the recipient’s account is valid. For the recipient, it guarantees that the money will be duly transferred to their account. The Bank ID number identifies the bank account in a given bank for a given country. It is used to manage national payments. -

The entry format for the bank ID number depends on the country in which the bank is domiciled.

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For the entry of the bank ID numbers to be correct, it is necessary to define the entry format in the Country table beforehand.

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The Bank ID number identifies the bank account in a given bank for a given country. It is used to manage national payments.


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Business Partners (continued) The Default field is used to specify that the bank ID number is used by default for payments in the absence of a more precise rule. The Domicile field is mandatory for payments and defines the paying bank related to the account number. The Beneficiary field identifies the bank account’s recipient (physical or moral person). The BIC code field is used to perform the automatic processing of payment requests. The sender’s bank needs the BIC code of the recipient’s bank. -

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This code is an ISO identifier managed by the international banking system, and namely the Society for Worldwide Interbank Financial Telecommunication (SWIFT). The BIC code can contain 8 to 11 characters. In either case, the first 8 characters of the BIC code generally designate the bank’s head office and are structured under the form BBB PP AA, with BBB being the bank mnemonic identifier, PP the ISO country code, and AA the service code (geographic).

In some commercial exchanges, on request of the business partner, or payment issuing banks, an intermediary bank is sometimes used. -

In this case, the identifiers of this bank must be entered (BIC code, paying bank, and country).

- This information remains optional – it does not need to be entered if no intermediary bank is mandatory.

Contacts Tab Use the Contacts tab to define contacts for the business partner. It is also necessary to assign which of the contacts is used as the default contact. You can either create a new contact code in the Contacts section or select from contacts already defined for other records.

- For new contacts, you can either enter an ID or have the system automatically generate a contact code based on a sequence number defined. You can have multiple contacts associated with a single BP record; however, you can only define one as the default. For each contact, you can define such as their title, name, function, department, role, birth date, category, address, and e-mail and telephone information.

- You define the options available for the Role and Category using the Data (GESADI) function under Miscellaneous tables in the Development > Data and parameters block.

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Business Partners (continued) BP/Company Tab Use the BP/Company tab to define a tax rule for the selected BP by company. It is only necessary to define this information if specific rules must be defined. In the case of multi-company management, you can prohibit the entry of the account postings for a business partner for certain companies.

- This is done by selecting No at the Authorized entry field for a specific BP/Company combination created.

- In the case of BP, this is the customer and/or supplier.

Additional Information After creating a BP, you can define role specific information by either accessing the appropriate function from the Common data > BPs block or by selecting the BP record in the BPs function and clicking the appropriate option in the Right panel. For example, you can create a customer specific record for the selected BP in the BPs function by clicking Customer or you can select Customers from the Common data > BPs task block.


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Supplier Category Similar to customer, each supplier is assigned to a supplier category. The supplier category defines default settings applied to suppliers, saving you data entry time. You generate reports and view inquiries based on the supplier category. Changes made to a supplier category after a supplier is defined are not carried forward. Use Supplier categories (GESBSG) in the Common data > BPs block to define supplier categories.

The Supplier counter field identifies a counter to use if automatically generating supplier IDs. It is important to note that the supplier ID created also creates the BP record with the same ID. In the General Characteristics section, define default characteristics such as the country, language3, and supplier type.

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Supplier Category (continued) Use the Supplier type field to identify the type of supplier:

- Standard supplier - Miscellaneous supplier: This is a non-referenced supplier. When selected, a window automatically displays prompting for the entry of the address.

- Prospect: For this type of supplier, the selection of the order is not authorized, only the entry of requests for quotes is possible. A prospect can become a standard supplier. Select an option in the Credit section to provide a way for the purchasing system to shadow the credit control that selected suppliers are exercising on you as one of their customers.

- This minimizes the number of cases where you might issue an important purchase order, but have it blocked on the supplier’s system due to a credit problem.

- It would be preferable to know about the potential problem in advance, so that some action, such as a special payment would eliminate the block and allow the shipment to be processed.

- The Authorized credit field is the maximum outstanding credit amount authorized by this supplier. Statistical groups are optional tables/fields for assigning suppliers to a particular group for reporting and analysis. They can also be used to control sales and purchase pricing.

- Each supplier has 5 groups and each group can have many possible entries which are determined in the setup of the statistical group.

- For example, the class group might be used to identify the type of supplier LRG (large), MED (medium), etc.

- Reports can be run to find all LRG suppliers.


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Supplier Category (continued) Commercial Tab Use the Commercial tab to enter the commercial information concerning the selected supplier. This includes the order and delivery information, and whether specific documents are printed.

The ABC class field allows for the classification of business partners regarding their importance to the turnover. -

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Values between A and D can be entered. At the time of creation, the business partner does not have any statistical data and is classified in category D by default. The supplier category is used to associate the supplier with the coefficients destined to be used to weight the quality notes.

The Minimum order field is used to enter the minimum exclusion tax amount, below which, supplier orders should not be recorded. The Multi-line order check box allows the sending of orders containing several lines to the supplier. This check box is normally selected, except in very specific cases. Select the Acknowledge reminder check box if you want to print the acknowledgement of receipts for orders. This identifies the products, quantity, and cost information entered for a supplier receipt.

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Supplier Category (continued) The Unavailable field displays a code which defines periods during which a business operation is not possible or a resource is not available (for example, holidays or scheduled shutdowns). -

These codes are defined in the Unavailable periods function under Unavailable periods in the Common data > BP tables block.

- The information is used to ensure the theoretical order date of a purchase request does not fall within these periods. The theoretical order date is calculated using the requested date of the request minus the time necessary for the purchase. Use the Incoterm (Freight terms) field to enter the International Chamber of Commerce (Incoterm) code, which standardizes the terms most used in international commerce by defining the respective responsibilities of the seller and buyer. -

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The Incoterm codes used in this field are used mainly in the Customs document file and can also be used in the price list definition. The Transport Location field information must be indicated in the Customs document file. It is combined in the Incoterm code to determine the shipping conditions taking into account the clauses of the sales contract specifying the respective responsibilities of the seller and buyer.

The options under Due date origin are used to calculate the basis for the open items using the invoice date or receipt date. The Reports section determine whether or not to print such documents as the order form, return slip, and receipt note. In the Discounts and charges grid, enter the appropriate default percentages and amounts for the purchase invoice elements listed. These are defined as invoice elements and appear in the invoice footer section.

- Invoice elements affect the price calculated for a business partner using the pricing structure defined for Purchasing.

- Invoice elements are defined through the Invoicing elements (GESPFI) function in the Setup > Purchasing block.

- These elements only affect invoices entered in the Purchasing module.


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Supplier Category (continued) Financial Tab Use the Financial tab to enter default information to use for accounting purposes such as the accounting code, payment information, and dimension defaults.

Based on the set up of the automatic journal, the accounting code selected can impact the posting accounts used when entering transactions for a supplier. The Analytical section is used to define default dimension values for the codes listed. Based on settings defined, the defaults entered are used when posting to the analytical chart of accounts. 1099

A supplier is identified as a 1099 supplier by selecting the 1099 form and box at the 1099 form and 1099 box fields. The form and box are defaults and can be changed during transaction entry. You must also enter the appropriate tax number at the Site registration no field on the Identity tab. If the actual company name should print on the 1099, enter the company name at the Company name field.

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Supplier Category (continued) If it is an individual operating under a doing business as name, the first field is the doing business as name and the second field is the individuals name. Additional information on defining 1099 information is discussed in the next lesson. Payment

The Payment section allows you to define the default payment terms. The Payment terms field defines the terms extended to you from the supplier for paying their invoices. The Settlement discount field defines any early discount or late payment charges and works in conjunction with the payment terms. If a bank is selected at the Bank field, the automatic payment proposal processing automatically assigns this bank account to all the payments for the supplier.

Ranking Tab Use the Ranking tab to enter rankings on supplier quality. The information is weighted as a function of the coefficients associated with the supplier category to obtain a general ranking.

The Lead-time coefficient field is the factor associated with the supplier’s lead time and is used to evaluate their performance regarding their lead time. The Price factor field is the factor applied to the assigned grade for price compliance for this supplier. The Quality factor field is the factor assigned regarding quality, such as how many rejects are experienced on receipts from the supplier.

- This value is used only for informational purposes and has no effect on processing, but it can be used in conjunction with the tracking factors set generally for the related supplier. The Quantity factor field is the factor assigned regarding quantities, such as how close the receipt quantities are to those that are ordered, or how many partial receipts have to be processed before a purchase order is fulfilled . The Free coefficient field is the factor assigned according to a user-defined criterion .


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Suppliers Suppliers are those business partners from which you purchase products and/or services. They are available for selection in such functions as Orders in the Purchasing module or Supplier BP Invoices in the A/P-A/R accounting module. Use Suppliers (GESBPS) in the Common data > BPs block to create and modify supplier information.

- Only information different to what has already been discussed in the BPs and Supplier categories functions is included in this topic. When creating a supplier specific record, you must select a supplier category and enter a supplier ID.

- If you have already defined a BP with the same ID, the information defined for the BP defaults to the supplier record created.

- If you are creating a supplier that was not previously defined as a BP, the BP record is created when creating the supplier. Information defined or modified for a supplier in the Suppliers function, automatically updates the corresponding BP record.

Addresses Tab By default, the system creates a supplier specific address code based on the supplier ID. This is in addition to any addresses defined at the BP record.

Commercial Tab The Commercial tab includes a Location field and a Text section not previously available in the Supplier categories or BPs functions. The Location field is used to define a location assigned to the supplier (stock at the sub-contractor). A control is carried out to verify that the location entered is a subcontractor type. The selection of the Order and/or Return check boxes in the Text section indicate text associated with an order or return were created and can be viewed using the appropriate option under Text in the Right panel.

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Suppliers (continued) Management Tab There are additional settings on the Management tab that were not defined when creating a supplier category. These include the placing a supplier on payment hold, putting them in a dispute status, and entering notes.

The Payment hold check box determines whether a payment hold is in effect for this supplier. If a hold is in effect, a payment may not be entered for this supplier, and the supplier’s invoices are no longer considered when processing the automatic payments. The Dispute option is used to alert you to whether or not there is a dispute with this supplier. Depending on whether Warning or Hold is selected, purchase transactions may be blocked.


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Suppliers (continued) Financial Tab The Financial tab includes additional information for defining BP information such as the pay-to BP and BP risk. At the Invoice BP field, select the supplier to be invoiced. This defaults to the current supplier’s code but can be changed. In addition, you must select a default address to use for invoicing purposes.

- You can select a factor BP record that is different to the supplier record. Allowing you to enter an invoice for a single BP for multiple suppliers. At the Pay-to field, enter the pay-to BP code. Similar to the Invoicing BP, it defaults to the current supplier code and you must select a specific address code. At the Supplier group field, the supplier group code is initialized by default with the supplier code entered in the header. If you are tracking 1099 invoices for this supplier, you must enter the appropriate 1099 information.

- If selected, you can enter 1099 invoices for this vendor as well as regular (non1099) invoices.

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Products Certain product information must be properly defined in order to process with the purchasing process.

Product Category Each product is assigned to a product category. The primary purpose of the product category is to define default settings that are applied to products and product-site definitions. Below is key information to keep in mind. The option(s) selected in the Types of flow section on the Description tab determines if products associated with the category are bought, manufactured, subcontracted, sold, and/or deliverable. The options available in the Quality section on the Management tab define whether a product must be controlled on receipt into stock. -

If using QC management, you determine the status given to an item received and whether that status can be changed at the receipt level.

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Statuses include ‘Q’ (quality control), ‘A’ (available), and ‘R’ (rejected).

- The status defaults to ‘Q’ automatically, but can be changed. -

When an item is received with a ‘Q’ status, you must go through the Quality control task on the Inventory > Quality control menu to release the item so that it is available.


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Products (continued) You must also indicate on the Management tab if the product is location managed. This indicates whether products assigned to this category are managed with the warehouse with respect to their physical stocking location -

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If selected, you can define a set of dedication locations for this category. For example, products associated with this category may be stored within specific areas of a warehouse. The actual location is determined when items are received.

You can customize the descriptions available for selection with the exception of the first three for Receipt, Stock, and Picking. Use the Receipts tab to define the stock management rules that apply to this specific product category.

- Stock management rules define parameters used to manage the behavior of items received and issued including default location, authorized status, default status, and QC request.

- Standard settings are defined using the Stock management rules function in the Setup > Stock block.

- These rules include supplier receipts. Use the Issue Flow tab to define purchase information such a delivery tolerance percentage, whether the product is subject to receipt, and whether a purchase request is required for products assigned to the product category. -

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The delivery tolerance percentage entered is the quantity on the order below which the closure of the order can be carried out after partial receipt. The Received product check box determines if a product must go through the receipt process. This is automatic for products tracked in stock; however, it is optional for products that are not managed. Select the Mandatory PO request check box to specify that a product cannot be entered on a direct order and that a purchase request is required first.



Products (continued) Products Use Products (GESITM) in the Common data > Products block to define your product information. Each product is assigned to a product category. The products defined are regardless of site. Below is key information to keep in mind. The statuses for a product include: Active, In Development, On shortage, Not Renewed, Obsolete, and Not Usable.

- If In Development is selected, the product does not appear in search windows but can be selected using direct entry of the product code. A warning displays; however, you can proceed.

- Not Renewed and Obsolete are for information only. - Select Not Usable to prevent any selection of the product. The product does not display in search windows and it cannot be manually entered. On the Management tab, you determine if the product is lot and/or serial managed.

- For lot managed products, you can determine if entering a lot number is mandatory or required. If required, you must enter lot information for products received.

- For serial managed products, you can determine if a serial number is required when receiving an item. Use the Suppliers tab to define specific supplier/product information. This includes the suppliers product ID, receipt cost factor, purchase unit, minimum quantity, and quality control information.

- You can also define purchasing lead times which are used to calculate a product should be ordered to meet the required receipt date.

Product - Sites Use Product - sites (GESITF) in the Common data > Products block to define product information specific to a site. You can also view stock movement information for each stock status, view total quantity received and amounts, as well as view cost information. This includes settings defaulted from the product category and product such as the stock management, location management, and quality control information. You can only select products associated with the site selected when entering an order.


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Sales & Purchasing Taxes You can define sales tax information for use in Purchasing or Sales, allowing the calculation of sales tax on orders and invoices. There are several functions used when defining sales tax information:

- Tax Rules, Product Tax Levels, Tax Determination, and Tax Rates. Each function is available on various menus under Common data. The diagram below shows the basic taxing process and flow of how information is defined and sales taxes are calculated.

It is important to review the setup of the tax field in the TC data parameter. The field name is EXETAX.

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Sales & Purchasing Taxes (continued) Tax Rules Use BP tax rule (GESTVB) under Taxes in the Common data > Common tables block to define the tax rules that are associated with each BP (e.g. customer/supplier). Using a tax rule makes it possible to specify the tax codes to be used by crossing them with the tax levels of the product in order to carry out the tax calculations for sales and purchases.

For each rule, enter a three character code, description, and short description. You can optionally create BP tax rules specific to a legislation by selecting a legislation at the Legislation field. You can optionally associate a tax rule code with a specific company group at the Group of company field. Company groups must already be defined or you can return to this task at a later time to define these settings. You can optionally define a default tax code at the Tax code file. This will be the priority when entering the BP invoices and journals if the SAITAX parameter value is set to No. -

Tax codes must already be defined or you can return to this task to update the information, if needed.

For US sales tax, you should always select Normal at the Rate type field. You can associate a tax rule code with a specific customer or supplier at the Tax rule field on the Financial tab in the Customers and Suppliers functions. You can also define a tax rule to use for a BP by company. This is done on the BP/company tab in the BPs function.


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Sales & Purchasing Taxes (continued) Product Tax Levels Use Tax level (GESTVI) under Taxes in the Common data > Common tables block to define the tax levels associated with each product. The rule is applied to the product and helps determine if the product is taxed or not.

For each level, define the three digit code, description, and short title. A tax level is assigned to a product at the Tax level field on the Financials tab in the Products function.

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Sales & Purchasing Taxes (continued) Tax Rates Use Tax rates (GESTVT) under Taxes in the Common data > Common tables block to defined the tax codes relating to the taxes to be applied. For each tax rate, enter an ID and description as well as the actual rate to charge.

The options available at the Tax type field include VAT (Value-Added tax), Additional tax, Special tax, and Local tax.

- Both the Additional tax and Special tax options are based on the ex-tax amount, the quantity, and any other document line element. If either Additional Tax or Special Tax is selected, you can optionally select the Subject to tax check box.

- This is used to specify that the tax is subject to VAT, and a VAT calculation on this tax is triggered.


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Sales & Purchasing Taxes (continued) The option selected for Invoice tax due determines when the tax is due. Either when the invoice is issued or paid. At the Tax rule field, select the tax rule to associate with the tax rate code.

- This represents the territorial calculation rules that need to be applied to determine tax amount.

- The tax rule set up in the customer record or the supplier record is submitted by default in all the transactions involving this BP.

- In most cases, this setting defines, the crossing of the tax rule with the tax level to determine the tax code applied to the document line. When defining the actual rate information, you can define a specific company and active date.

- Lines that have both a company and date defined take precedence when determining the rate over lines that have only a date defined.

- If the line allows for exempted sales, click in the Exempted sales column. - The percentage entered at the % deductable field corresponds to the percentage that can be deducted for non-recoverable taxes. The Dimension section only displays for analytical accounting. It is used to determine which dimension values to use when posting taxes for the selected tax code.

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Sales & Purchasing Taxes (continued) Tax Determination Use Tax determination (GESTVC) under Taxes in the Common data > Common tables block to determine the tax code to use in the sales and purchasing functions to calculate the taxes to be applied. For each tax definition, you must select a single BP tax rule and product tax level. You can also optionally define the information specific to a company group.

Use the BP tax rule field to assign the tax rule and tax level to the tax definition. The system generates the expression displayed at the Total expression field based on the selections made. The Tax field identifies the tax code to use for this definition.


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Sales & Purchasing Taxes (continued) You can also define additional settings that must be met in order for the tax code associated with the definition to be calculated.

- You can define up to five additional fields that must meet a condition you define.

- You can define from field to field, if the And or Or condition is used. - All fields available for selection come from the TAXLINK table. - You can also use the Expression field to add more elaborate criteria. The fields used in the expression also come from the TAXLINK table. There are two special fields in the TAXLINK table. They are the SATRCP and SATISS fields.

- The SATRCP corresponds to the receipt province (loaded with the report code of the address identifying the destination.)

- The SATISS corresponds to the issue province (loaded with the report code of the address identifying the original flow.)

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Lesson 3 Purchasing Price In the following topics, you will learn how to define and enter information necessary to calculate the purchase price taking into account discounts, handling fees, expenses, etc. The topics in this lesson include: !

Purchase Pricing

!

Structure

!

Reasons

!

Setup Options

!

Activation

!

Price Entry

!

Price Search


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Purchase Pricing The program allows you to define purchase pricing information which calculates the purchase price of an item based on several factors. For example, you can have the system calculate pricing information that includes any additional handling and expense charges and even reduce the purchase price based on discounts. You can define criteria used to determine the purchase price based on the product, supplier and quantity being purchased. You can generate price lists to determine the best price based on specific criteria. Defining purchase pricing information involves the defining of parameters.

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Sage North North America Certified Student Student Course Curriculum Curriculum - Version 3.0 3.0 Copyright © 2014 Sage, Inc. All Rights Reserved.


Structures Use Structures (GESPRS) under Price lists in the Setup > Purchasing block to define a price code structure which allows you to enter such items as discount percentages and handling fees at the t he line item level. You can choose to have the percentages or amount entered calculated from the base purchase price of the line items or calculated and displayed in the invoice footer. You can assign the structure created to a supplier on the Commercial tab in the Suppliers function.

The information entered at the Title field represents columns that display when entering line items. For each column added, you can determine if the value is entered or calculated during data entry increases or decreases the base purchase price.

- The order the columns are entered determines the order in which amounts and percentage are calculated and applied to the base purchase price. The option selected at the Value column determines if an amount or percentage is entered.

- Select % combined to total all percentages entered for the line item and use that total as the percentage added/subtracted from the base purchase price. For example, a 20% discount combined with a 10% charge results in a net reduction of 10%.

- Select % series to apply multiple percentages to the base purchase price successively. For example, if the first column is a 20% discount and the second column is a 10% charge, the 20% is taken off the base purchase price and the next result is used when calculating the 10% charge.


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Structures (continued) At the Calculation base field you can select whether the amount is added/subtracted on each individual unit (quantity) or by line.

- In the case of percentages, the percentage calculation is made by unit and cannot be changed. The Net price – tax field determines whether the value plays a role or not in the calculation of the net purchase price for the line or the overall order/invoice amount.

- If the value is taken into account in the calculation of the net price for the line (Yes), the discount or charge is posted to the purchase account.

- If the value is not used here (No), it is taken into account in the invoice footer and posted to a footer account (if an invoice footer is defined) or simply used for informational purposes. The Invoicing element field is only accessible if No is selected at the Net price – tax field. The invoice element selected determines how it displays in the invoice footer.

- For example, you can have the overall discount amount displayed in the Footer instead of reducing the individual line item base purchase price.

- You define the invoicing elements in the Invoicing elements function on the Setup > Purchasing block.

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Sage North North America America Certified Student Student Course Curriculum Curriculum - Version Version 3.0 Copyright © 2014 Sage, Inc. All Rights Reserved.


Reasons Use Reasons (GESPPR) under Price lists in the Setup > Purchasing block to define a numeric code identifying reasons why a price list is used. When a price list is applied to a line item on a purchase request, order, invoice, etc, the associated reason code is also assigned. The association between the reason and price list is defined through the Parameters function, which is discussed in a later topic. A default parameters (UPDPRIPUR) is used to provide a default reason code if no other reason is found. For example, if the price comes from the standard cost of the product. A second default parameter (DACMANPUR) allows you to define a default reason code used for all manually entered value. Making it easier to identify manual modifications.

For each reason, enter a description and identify whether the reason code can be entered manually or if it is assigned only automatically at the Manual entry field. At the Price change field, select either Yes or No to indicate whether or not you can manually modify the prices that are created under the reason code.


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Setup Options Use Setup (GESPPC) under Price lists in the Setup > Purchasing block to define the actual price code and the supplier price setting rules. Price lists are generated based on the price codes created in this function. Price codes are applied during the entry of line items on a purchase request, order, and receipt.

- They are not applied when automatically generated from another document (e.g. sales order.). The price list search takes into account the price code, and the user can than load the price list database. You can create an unlimited number of supplier price codes, each identified by a 6 character code.

The option selected at the Price list type field determines if the rule is applied to each individual line item or a group of line items.

- Select Normal to apply the allocation of values (e.g. prices, discounts, charges, etc.) to individual line items based on the conditions defined.

- Select Grouped to allow the allocation of values that are most favorable to the buyer. In this way, for the same order line, the gross price can come from a Normal price list record, the discounts and charges from the Grouped price list record, always the most favorable for the buyer.

- For the Grouped price type, the allocation of values is applied to a group of lines based on the conditions defined in the rule.

- Important to note the grouped price lists are only calculated for purchase orders. Page 36



Setup Options (continued) At the Search group field, you can create an association of logical price list sets, which are evaluated by priority order within the same group.

- For example, you can have multiple price codes assigned to a research group of 1.

- When evaluating the search groups, the most favorable price list is taken for the order using the calculated net price.

- You can define up to 10 search groups (0 – 9). If no group is determined (all price lists have a zero value), it is the priority rule that is applied to all the price lists.

- You cannot assign a Grouped price list to a research group. The priority defined at the Priority field is useful when several price setting rules of the same type exist. This helps to determine the order in which the price lists are searched.

Criteria Tab The Criteria tab is used to define the different fields in the tables where the values will determine the application of the price list for the line item. For example, you can create a price code that allows you to define pricing information specific to a product and supplier as shown in the figure below. The specific values are defined in the Price entry function for the specific price codes defined here.

Click the Selection icon in the File field to view a list of tables. The tables available are pre-defined.

- Several tables were added strictly for inter-company price lists. These tables are identified in Help.

- A special table PPRICLINK does not exist in the database. It is more of a data structure in which the document header and line elements used for the price list search are stored. Found here for example are the delivery method, supplier or product statistical group, etc.


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Setup Options (continued) Based on the table selected, you can select the field to use as part of the criteria.

- Information including the length displays for the field selected. - If the field is indexed, you must enter a value at the Ind field. The index value is equal to 0 for the first occurrence, 1 for the second, etc. For example, with a field with 9 occurrences, indices range from 0 to 8.

- The Link field controls whether during inquiry the long or short description displays if you add a column. When creating inter-company price lists, it is possible to define different prices for certain companies in the group buying to other companies in the group.

- Examples are available in Help.

Price Tab Use the Price tab to define the price processing information including whether the price includes tax, and unit conversion information.

The Price processing field defines if the price setting structure assigns a unit price to the line, and if yes, in what manger. The options include:

- No - Price is not defined. - Value - Price is entered into the price list. - Value for N - Price is calculated by dividing the quantity entered by the value of N, units being equal. If the units are not the same, the price is only applied if the Unit conversion field is set to Yes.

- Factor - A factor defined at the Base Price Field is applied to the base price. - Calculation - The price is determined by a formula defined at the Base Price Field. If you want the price list to be based on quantity ranges, select Yes at the Price/quantity field. For each price list line entered, you must enter a minimum and maximum quantity. The conversion fields determine if the price list is converted based on the purchase unit or currency if different from the price list. Page 38



Setup Options (continued) Charges/Discounts Tab Use the Charges/Discounts tab to determine how the value for the columns defined in the price structure selected is determined. Select Yes to have the value determined by the price list. When creating a price list for the selected price code (parameter), you must enter the appropriate values. Select No to indicate the price list does not define the value. However, keep in mind that the value can come from another price list with a lower priority. Select Initialization to indicate the value is not filled by the price list and no other price list can fill the value. You must enter the value during data entry.

Validation New parameters as well as any modified existing parameters must be validated to ensure the settings defined are valid based on selections made. This is done automatically when creating or saving changes or by clicking Validation in the Right panel.


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Activation Use Activation (FUNPPCACT) under Price lists in the Setup > Purchasing block to activate or deactivate the price codes (setup options) defined. This function allows you to affect multiple price codes at one time; however, keep in mind that you can activate or deactivate individual price codes in the Setup function. In addition, you can also use this function to quickly and easily change the priority level for each price code.

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Price Entry Use Price list entry (GESPPL) in the Purchasing > Price lists block to define, for each price code, price list records. You can have multiple price list records for the same price code. For example, you can have different price records but with different validity dates. When first accessing the function, you must select a price code for which you are defining price records.

The price list record number is automatically generated based on the sequence counter parameter detailed for the price list records; however, you can optionally enter a price list record number.


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Price Entry (continued) The data entered in the gird is based on the set up of the price code and can include: -

The identifiers that will cause the price list to be applied. This is based on the fields selected on the Criteria tab.

-

Range in amounts or quantity.

-

The gross price to apply to the product.

-

Amount or percentages for discounts and charges.

If part of the criteria for the price code is to select a supplier, it is important to keep in mind the following. -

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If you have assigned a specific price structure to the supplier, you will receive an error if you select a supplier on a price code that uses a different structure.



Price Search Before ordering a product from a supplier, you can check which price the system will apply based on a given site, date, currency, quantity, and product/supplier combination. This is done using the Price search (FUNACHPPSI) function in the Purchasing > Price lists block.

In the top section, enter the information used to determine the pricing information. This includes the product, date, supplier, site, and quantity. The Charges/Discounts section shows any discount or charges specific to the price code used to generate the price. You must click Price list inquiry in the Right panel to view information in the Price Lists section. This displays the necessary information such as the price code and record used to generate the price. After entering the appropriate information, click Apply to have the system retrieve the pricing information.

- The Price section contains two lines. One line for the unit price (gross price) and another line for the price depending on the quantity entered at the Quantity field.

- The system takes into account priority settings defined to determine the price record used. Group price lists are not used in this function as they require information from multiple lines entered on a document. Sage North America Certified Student Course Curriculum - Version 3.0 Copyright © 2014 Sage, Inc. All Rights Reserved.

Page 43


Lesson 4 Purchasing Products In the following topics, you will learn how to purchase products from your suppliers including creating purchase requests, requesting quotes, entering purchase orders, receiving items, and entering invoices. The topics in this lesson include:

Page 44

!

Purchase Request

!

Request for Quotes

!

Planning and Ordering

!

Buyer Planning

!

Purchase Orders

!

Prepayments

!

Contract Orders

!

Back-to-Back Orders



Purchase Requests The purpose of a purchase request is to manage the purchase requirements of the various departments or sites of a company. Each purchase request can contain several products regardless if they are managed in stock or not. For example, you can enter a purchase request for office supplies used internally as well as a purchase request for raw materials used in the manufacturing of a product. Below is the standard purchase request flow.

You determine when setting up parameters whether the quantities entered for a product are defined as pre-commitment or commitment and whether the purchase request must go through an approval process. The recorded purchase requests can be listed, signed (based on parameters), closed, and displayed during the creation of a request for a quote and turned into an order.


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Purchase Request (continued) Requests Use Purchase requests (GESPSH) in the Purchasing > Purchase requests block to enter, modify, and delete purchase requests. The information entered includes the requester, site, and products requested. Note: If you have defined transaction types for purchase requests, you will be prompted for the transaction type to use when first accessing the function.

The requester defaults to the current user; however, it can be changed. You can manually enter a request number or have the system automatically create a number based on parameters and the structure defined. On the Lines tab, define information for the products or services requested. Information entered includes the receiving site, requested date, quantity, supplier, and purchase type. If a product selected is already on an order or a contract, a message displays. You have the option to continue or canceling the entry of the product.

- The assumption is that it might be redundant to order a product that is already planned for ordering on a contract or another order.

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Purchase Request (continued) The site selected at the Rec site field represents the site where the goods must be delivered by the supplier.

- This defaults to the request site if the request site is also a warehouse. - The receipt site must belong to the same legal company as the requesting site and must be defined as a warehouse.

- You cannot select a site for a product for which you have not defined an association in the Product – sites function. The purchase unit of measure defaults to the purchase unit defined for the supplier defined for the product. If there is no supplier purchase UOM, it defaults to the UOM of the product. At the Supplier field, select the supplier with whom the order should be placed.

- Click the Actions icon in the Supplier field and select Supplier product to view suppliers defined for the product. The information displayed includes the supplier, minimum quantity, purchase UOM, and quality metric.

- You do not have to select a supplier associated with the product in the Products function.

- You can select a different supplier for each product selected. The Calculated order date field displays the date by which an order should be placed to receive by the requested date.

- The date is calculated by: Requested delivery date – Purchasing lead time. - The lead time defined at the product-site level is accessed first. If this value is not set, the value at the product level is used. The purchase type determines the tax account to use and the options include Purchase, Fixed Assets, or Services. The default is Purchase. The Signature field is only available if signature management is activated. Also displays is whether the request is closed, transferred to an order, and printed. You can modify information on a purchase request as long as an order has not been generated for a line item and the request is not closed.


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Purchase Request (continued) Net Price

The Line amount - tax field displays the purchase price (cost) of the product at the purchasing UOM. The price is defaulted based on the parameters defined. It is either the standard price or based on a price list search. You can only modify the price based on settings defined. -

If the price field cannot be entered and at the end of the price list search, the price is null, the price is automatically valued at the standard price.

Click the Actions icon for the line and select Price explanation to view the gross price, reason code, and net price used. Click the Actions icon in the Net price field and select Discount/Cost to view the line pricing detail. This includes the gross price, discounts/charges based on the price list used, and the reasons.

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-

If the setup of the price list allows you to modify the price, discounts, charges, etc, you can enter the necessary information in this window.

-

You can also change the reason code and add additional reason codes which can influence the price lists used.



Purchase Request (continued) Budget

Based on parameters defined, budgetary control can be carried out at the level of each data entry line or at the time you create the purchase request. If budgetary controls are in place, a warning displays if the line or purchase request exceeds the budget defined. The message can be blocking or a simple warning based on the choices you made when defining budget parameters. You can view budgets by right-clicking on a line and select Budget. Closing a Purchase Request

Purchase requests are automatically closed once all line are transferred to an order. If line items are outstanding and the purchase request should be closed, you can either close them individually in the Purchase request function by clicking Close in the Right panel or use the Automatic closing or Manual closing functions in the Purchasing > Purchase requests block to close a range of purchase requests based on a criteria you define. Additional Information

To enter a purchase request for products entered on a request for quote, click the Actions icon in the Product field and select RFQ.

- A list of RFQs displays and you can select the appropriate one defaulting information on the Lines tab. For products managed in stock, it is possible to take into account the suggestions coming from the MRP calculation in the Manufacturing module or from the reorder calculations in the Stock module.

- If purchase suggestions exist, a window automatically displays to propose the requirements to be taken into account.

- You can optionally use the suggestions or close the window to manually enter information.

- If you take suggestions into account, information defaults on the Lines tab to match the suggestions displayed.

- There are restrictions when using suggestions such as the quantity can be changed; however, it must be equal to or less than the suggested quantity.

- Review information in Help for additional restrictions and defaults for suggestions. You can duplicate a line entry by clicking the Actions icon for a line and selecting Line duplication.


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Purchase Request (continued) If you have activated signature management, a purchase request line cannot be transferred into an order unless it has been signed.

- You can sign a purchase request by selecting Signature from the Signature block in the Purchase requests function.

- You can also view signature history and the circuit by which the signature process has gone through. Based on settings defined, you can either print the requisition by clicking the Print button or by selecting the BONDA report code in the Internal documents function under Purchasing in the Printouts > Prints/group block.

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Request for Quotes Requests for quotes (RFQ) are used to look at a supplier or a group of suppliers using conditions such as price, quantity, delivery lead-times or any other information (text) for one or several products. Generally, the request for a quote is carried out after a purchase request is made. The diagram below is an example of a typical purchase request flow.

Each RFQ is numbered and for a specific request, the information requested from the different selected suppliers is identical in order to facilitate the analysis of the responses received. Use RFQ (GESPQH) in the Purchasing > RFQs block to enter and maintain information for a request for quote.


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Request for Quotes (continued) In the Header section, enter information such as the site requesting the quote, the request date, due date for responses, and the user making the request. In the Products section, list the products you are requesting a quote for. Include information such as the purchase unit of measure, quantity, and request date for delivery of the product. In the Suppliers section, select the suppliers to whom you want to send a request for quote. Information is updated based on the responses received and reminders sent. If the buyer filter parameter is activated, only the products associated with the buyer can be selected along with those products where no buyer is defined.

- A buyer can be defined at either the product level or the product-site level. You can add products from a purchase request by right-clicking in the Product field and selecting Purchase requests.

- You can only select from purchase requests defined for the same RFQ site selected. Printing RFQs

After creating the RFQ, you can click Print in the Right panel and select the Record option to print the RFQ. From here you can print or preview the RFQs, as well as define selection criteria. The selection criteria automatically defaults to the RFQ entered. If you don’t print the RFQ now, you can print it later by selecting the BONAOF2 report code in the External documents function under Purchasing on the Printouts > Prints/group block.

Reminders Use Reminders (FUNREL) in the Purchasing > RFQs block to record the number of reminders sent to a supplier to obtain their answer to a request for quote. Each time you enter a reminder for a supplier, the request for quote reminder is updated on the RFQ including the last reminder date.

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Request for Quotes (continued) Responses Use Responses (GESPPD) in the Purchasing > RFQs block to record the responses of a supplier to a RFQ. There are several goals to the recording of answers. By recording responses, you are able to compare the responses of the various suppliers. You can also use these responses to automatically create price lists and when entering an order.

At the RFQ no. field select the RFQ number you received the response for. The RFQs displayed are based on the site and supplier selected. At the Line field, select the line item(s) from the RFQ selected for which you received responses. At the bottom of the Product tab, enter the response date and any additional information such as the supplier product number and bard code identifier.


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Request for Quotes (continued) Price Tab

Use the Price tab to record the prices and the various supplier’s sales conditions. The information entered is used to create a price list and the columns and information required are based on the price structure assigned to the supplier selected.

Price List Generation Use Price list line generation (FUNPPD3) in the Purchasing > RFQs block to update existing price lists or generate new price lists based on response entered in the Responses function. You must select a supplier, RFQ number, and line item from the response. You must click in the Process field for each line display to generate a price list for the line item. You can optionally choose to leave the price record information empty to have the system generate a new one automatically or select an existing price record to update. The Generated price field indicates if a price list was generated for the selected line.

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Planning and Ordering The planning functions on the Purchasing > Ordering block are decision-support tools for the planner/material buyer. These functions provide the decision-maker different views of the events that they need to deal with over a given period of time. These functions take into account suggestions (MRP calculations, outside MRP, MPS, etc.). You can also group needs and the overage of needs into one replenishment order. The referred events are:

-

PO – Supplier Order SO – Customer Order MS – Subcontract Material SC – Subcontract Service WO – Work Order MW – Material Requirements TR – Transfer Order TP – Transfer Request BW – By-Product CR – Customer Reservation EO – Subcontract Order

The filter on order types to be viewed gives you the ability to highlight in a particular enterprise planning workbench what can constitute a critical event for the activity. Using this view, the decision-maker can act on the work in process with the purpose, for instance, taking account of the requirement calculation of a sales order.


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Planning and Ordering (continued) Enterprise Planning Workbench Use Enterprise planning (FUNGBENCHA) in the Purchasing > Supply block to have a multi-site and multi-product view of events that need to be dealt with over a given period of time. A standard enterprise planning workbench transaction is created as part of the installation of the software. This can be customized and you can create additional transaction types. The role of the transactions type selected is to be able to define the user profiles, the event types to take into account, and the data to display for each event.

In the Filters and Start-End Range sections, enter optional information used to filter the data displayed, as well as define a specific product and date range to filter the orders displayed.

- After defining the criteria, click Search in the Right panel to view information in the grid. The grid displays orders to process based on the information entered. The types of orders displayed depend on the parameterization of the transaction type selected when first accessing the function. Based on the transaction type selected, you can also define a BP range. This enables the WIP to be chosen based on the attached BP.

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Planning and Ordering (continued) The actions performed for the various orders displayed are also based on the setup of the transaction.

- Actions include creating supplier orders, manufacturing orders, and subcontract orders, as well as viewing stock inquiry, management data, and quantities available to promise.

- Creating the various orders are also functions available within the system. - Options are accessible by clicking the Actions icon on an order. - Review Help for information on each option based on the order type. The columns displayed include information such as the order number, site, product, quantity allocation, shortage, and any previous allocations. -

Review the Message column to view the recommended action to take.

There are various options available in the Right panel allowing you to perform such tasks as define additional selection criteria, create a purchase request, delivery request, or purchase order, create a new work order, create a new subcontract order, and even tunnel to the Product workbench function for the product/order selected in the grid. Various colors may display for a line. The colors displayed include: Pink/Red and Green lines.

- Pink/Red indicates the record has gone into a firm critical status. - Green indicates the order can be pushed out further.

Planning Workbench Use Planning workbench (FUNBENDCHA) in the Purchasing > Supply block to view events that need to be dealt with for a specific product and site. Unlike the Enterprise planning function, you can only view information for a single product. Information discussed previously regarding how the transaction types affect the function is the same.

Grouping Use Grouping (FUNMPICKA) in the Purchasing > Supply block to group the requirements and to cover the requirements with a single reordering order. It completes the action possibilities order by order offered to the buyer in the Enterprise planning and Product workbench functions. Similar to the other functions, grouping is based on a transaction type that determines how and what information displays. You can define a product range, BP range, and date range in this function. A single Generate option is used to generate the necessary documents based on the action needed. Sage North America Certified Student Course Curriculum - Version 3.0 Copyright © 2014 Sage, Inc. All Rights Reserved.

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Planning and Ordering (continued) Additional Information You should review information for the GPLNFLT (Module STO – Group SCH: Planner/Buyer filter) and GPLNHOR (Module STO – Group SCH: Default Planning Horizon) parameters. GPLNFLT – Specifies who, for a product and/or a given site, manages the product and who is in charge of reordering. GPLNHOR – Initializes the end date for orders you wish to view. This is based on a week from the start date entered.

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Buyer Planning Use Buyer plan (GESPOI) in the Purchasing > Orders block to prepare a series of orders for different suppliers, by taking into account the requirements issued by the different services such as purchase requests or the suggestions generated by the MRP calculation or the reorder calculation functions. When the products to be purchased are split between different buyers, this function makes it possible to for each buyer to obtain their own product planning workbench by processing only products associated with them.

In the Selection section, enter information for the order to generate including the site, date, and buyer. In the Print Out section, you can select to print the order. If printing, you must select the document and destination. Starting at the Product field, select the products to order including the supplier, quantity, and receipt date.


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Buyer Planning (continued) The gross price defaults based on the price list used. This is determined based on the information entered such as site, supplier, and product as well as settings defined for the supplier. When ordering multiple products from the same vendor, the system takes into account the supplier option for single or multi-line orders.

- If the supplier allows for multi-line orders, the products ordered from the same supplier are grouped onto a single order.

- Otherwise, a single order is generated for every product regardless if they are being purchased from the same supplier.

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Purchase Orders Use Orders (GESPOH) in the Purchasing > Orders block to create, view, delete, copy, modify, and print purchase orders created for a site and supplier. You can manage different type of orders including the standard purchase order, inter-site orders, inter-company orders, automatic purchase orders, and subcontracting orders Purchase orders can be generated from different sources.

You can manage orders automatically generated by other functions such as the product planning workbench. If signature management is activated, you can require signatures at the purchase order level which affects when the product quantities are committed and the purchase order is printed. For inter-site or inter-company orders, the reciprocal inter-site or inter-company sales orders can be generated specific to the management of inter-company flows.


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Purchase Orders (continued) Manual Creation As mentioned previously, you can create purchase orders from other documents entered (e.g. purchase request) or manually enter a purchase order. To manually create a purchase order, click New in the Orders function.

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Purchase Orders (continued) In the Header section, enter information including the site, supplier, and order date. The order number is generated when you create the order and is based on the structure defined in parameters. Information on the Management tab defaults from the supplier selected and the current user. -

If the supplier selected is defined as miscellaneous supplier, you are automatically prompted for an address.

-

You can enter a one-time shipment or other address for standard suppliers by selecting the appropriate option from the Address block.

If dimensions can be selected in this function, they appropriate types and values display in the Analytical section. The Status section is for reference purposes only. It indicates if the order is signed, printed, closed, received, and invoiced. Lines Tab

Use the Lines tab to enter information for the products you want to purchase from the selected supplier. Information entered includes the receipt site, address, order quantity, purchasing unit of measure, and quality control option.

When selecting the product, you can either manually enter the product ID or click the Selection icon to use the various selection options.

- Select Supplier Product through the Actions icon to select products based on the supplier product number defined.


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Purchase Orders (continued) The quantity at the Ordered field defaults to zero unless a minimum order quantity is entered for the product/supplier information. The expected receipt date is calculated based on the order date and information such as lead time from the price list, the product-site information, and the product information.

- The system carries out a check with respect to the unavailability dates of the receipt site.

- Upon order validation, this date is used to generate the product provisional stock. The price defaults based on the price lists available. If no price is found, it defaults to zero and a warning message displays if it is not changed. Right-click on a line to access key options including:

- Budget information which can control whether an order can be placed. For example, if an order exceeds the budgeted amount you can either by warned or blocked from creating the order.

- Duplicating the line to modify information such as the receipt address. This allows you to order the same product but have different quantities delivered to different locations.

- You can split an existing line entered to multiple receipt sites by selecting Split. - View how the price (cost) was generated by selecting Price explanation. - View valuation detail by order line by selecting Valuation detail.

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Purchase Orders (continued) Requirements to Consider

Once a product is selected, the system checks for purchase requests for the product and supplier selected. If so, the Requirements to Consider window displays and you can select the purchase request and determine the linked quantities.

You can define criteria for the requirements listed; however, the supplier and product cannot be changed. You can optionally select to include back-to-back orders. Back-to-back orders are discussed in a later topic.


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Purchase Orders (continued) Total Tab

Use the Total tab to view information such as the taxes calculated, the minimum order amount, the total from the Lines tab, the total including tax, and the acknowledgement notes. You can also add invoicing elements defined which can include such items as freight charges.

Following the receipt of the supplier receipt acknowledgement, you can enter the acknowledgement date and number in the Ack notes section.

- You can also enter any notes from the supplier in the Ack Notes field. - Once entered, the order lines are updated with the acknowledgement date and number.

- You can have more than one acknowledgement for a single order. For example, if you add a product to an order that was previously printed and acknowledged by the supplier. Cost Tab

The Cost tab is only used if using Advanced Purchase Costs (APC). It displays the cost information including the total minus tax, direct costs, invoicing elements, landed cost total, additional invoice totals, purchase cost total, and actual purchase cost total. Note: Advanced Purchase Costs is discussed in a later lesson.

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Purchase Orders (continued) Printing Purchase Orders

If the transaction selected is set to automatically print the order when created, you are prompted for the information necessary to print the order. You can also print orders using the or by selecting an order in the Orders function and clicking Print in the Right panel and selecting the Record option. You can enter text to print in the Header and Footer sections by selecting the appropriate option from the Text block in the Orders function. The options available for printing are based on the print codes and parameters defined.

Modifying an Existing Order You can modify information on an order until it is completely closed. Similarly, for each order line, you can modify the line as long as it is not closed. If you want to change the ordered quantity for a line and a receipt has been entered, the line must still be open and the new quantity entered cannot be less than the quantity already received. Different warning messages may also display based on where the order is in the purchasing flow.

- For example, if an order is modified that is partially or totally signed, message displays asking the user if they want to proceed. The modification made may prompt additional warnings that any signatures already recorded will be deleted and the process started over from scratch. If revision management is active as a parameter setting, you are prompted to identify if the modification is a revision for the order.

- If this is the case, the revision number displayed in the order header, as well as the number of all modified lines is incremented once the order is saved.


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Prepayments A supplier may request a prepayment for a specific order. You can generate prepayments in the Orders function by selecting the order and Prepayments under Options in the Right panel or by selecting Prepayment management (FUNPNS) in the Purchasing > Orders block. Prepayments entered are submitted to payment management and deducted from the final invoice amount. These prepayments can be generated automatically based on parameters defined for the purchase transaction.

In the Prepayment management function, select the document for which you are entering, modifying, or viewing prepayment information. For each prepayment recorded for the document, you must select the type and method, as well as enter an amount and due date. -

The payment methods are based on those methods defined in the Data function under Miscellaneous tables in the Development > Data and parameters block.

-

Additional information also displays indicating if the payment has been issue, amount settled, etc.

Processing Payments After entering the prepayment information, you must select the Payment/receipt entry function on the A/P-A/R Accounting > Payments block to process the payment. The options and data entry process is based on the type of payment and settings defined for this function.

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Contract Orders Contract orders are a long term commitment with a supplier concerning one or several products, for a global quantity to be delivered based on a delivery schedule. The contract defines the supplier and sales conditions, validity start and end dates for the contract, and the list of products. You can define specific transaction types for contracts when setting up purchasing parameters. Once a contract order is created, you can define the shipping requests which details the quantities and schedule on which items should be shipped to you.

Contracts Use Open orders (GESPOC) in the Purchasing > Orders block to define the supplier contract information. The options available when defining a contract order are similar to a standard order. For example, you can define payment terms, purchasing, invoicing, and shipping sites, and monitor the status of a contract order.


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Contract Orders (continued) The contract number is assigned by the system based on parameter settings similar to a purchase order number. On the Management tab, you can define the dates for which the contract is valid at the Valid from and Valid to dates.

- You can also define separate validity dates for each product on the Product tab. Product Tab

Use the Product tab to list the products that are part of the contract. This includes the product, valid dates, purchase quantity, receiving site, and purchase type.

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Contract Orders (continued) At the Planned field on the Product tab, enter the global purchase quantity. This represents the total quantity you will be purchasing over the contract period.

- A warning displays when defining shipment requests if the total requests entered for the product exceeds this amount; however, you can continue. You can either define a firm or planned horizon, which is used for future purchase requirements.

- When defining either a planned horizon, you can determine if the value entered is based on calendar days, work days, weeks, fortnights, or months. For each product, you can also select a specific pricing code to use as well as define specific pricing information based on effective dates. Once shipment requests are made, you cannot modify existing information; however, you can add new lines on the Product tab.

Delivery Requests Use Delivery requests (GESPOD) in the Purchasing > Orders block to manage the delivery requests made under the terms of an open contract order. When receiving products based on a contract order, they are received against the shipment request. A separate shipment request is made for each contract order/product combination automatically when the contract order is created.

- Use the Shipment requests listing in the Left List to select the appropriate contract order/product combination.


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Contract Orders (continued)

The Contract no. and Line fields represent the contract order and lit item (product) for which you are defining the shipment requests. The Product and Advance/Delay sections provide details on the contract order and product for which you are defining the shipment. This includes validity dates and the global purchase quantity. In the grid, enter the various shipment requests over a given period. For each demand period, enter a quantity and receiving site. -

The demand period dates must fall within the valid dates for the contract and the product.

-

The status is assigned by the system and identifies if the demand entered is late, open, received, closed, etc.

-

You can only modify the order status if the horizon defined for the product on the contract order is Planned. If Firm, it defaults to Firm and cannot be changed.

To print the requests for the supplier, you can either click the Print button in the Right panel of Shipment requests function or use the External documents function under Purchasing in the Printouts > Prints/group block to print the appropriate request.

- The default request report is BONDLOUV2.

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Contract Orders (continued) Delivery Request Inquiry

Use Delivery request inquiry (GESPOV) in the Purchasing > Orders block to view the delivery requests made for a contract order including the status of the delivery schedule for a site, and any receipts posted against the shipment request. You cannot modify information in this function. You can also access the Delivery request inquiry function for a specific shipment request in the Delivery requests function by selecting Delivery request inquiry under Options in the Right panel.


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Back-to-Back Orders Use Back-to-back order (FUNPOHW) in the Purchasing > Orders block to create purchase orders based on customer direct orders entered in the Sales module. Direct orders are normally entered for products that are specially manufactured or ordered upon request Direct orders are also referred to as back-to-back orders. The delivery method is determined at the customer order line. -

You can select to have the products delivered directly to the customer (no stock management) or received in the site and allocated to the purchase order generated by the sales order.

You must ensure the following settings are defined in order to create a direct order.

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Back-To-Back Orders (continued) Automatic PO Management The Automatic PO management window displays when you select the Back-to-back order function. In this window, enter the selection criteria to use when determining for which orders you are creating purchasing direct orders, as well as determine if the orders are printed immediately following the creation process.

During the creation process, the unit of measure used is the control unit of sale if it is a unit of measure of the product or if this unit of measure corresponds to the unit of measure of the product/supplier setup.

- In all other cases, there is a conversion into the purchase unit of measure. Click OK to create the purchase orders. A log report displays providing you with information on the purchase orders created and any errors encountered during the creation process. If you don’t print the orders immediately following the creation process, you can print them later either individually through the Orders function or through the External documents function under Purchasing in the Printouts > Prints/group block. You can edit, view, or delete orders created using the Orders function.


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Lesson 5 Purchasing Signature Management In the following topics, you will learn how the purchasing signature management process affects how orders are entered and processed. The topics in this lesson include:

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Purchasing Signature Management Overview

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Assignment Rules

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User Assignment

!

Delegated Users

!

Manage Signatures

!

Signature History and Circuit

!

Workflow Monitor

!

Standard Workflow Rules – PR Signatures

!

Standard Workflow Rules – PO Signatures

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Standard Workflow Rules – Open Orders Signatures



Purchasing Signature Management Overview As part of the purchasing process, you can require signatures as part of the workflow process. The requirement of these signatures can prevent a purchase request from being converted to a purchase order and a purchase order from being printed. Signature rules are used in the Purchasing module documents such as purchase requests, purchase orders or open orders, and also in budget management in order to validate budget envelopes. -

Only signature rules as they relate to Purchasing are discussed in this lesson.

Management of signature rules is closely linked to notifications by workflow.

- Each signature flow can be broken down into several successive workflow rules. - The signature circuit is a set of successive workflow rules which are triggered when creating or modifying the document. Each rule has triggering criteria and a list of recipients.

- The user must perform an action in order to launch the next rule. An action may consist of modifying the document, signing, cancelling the signature, refusing a signature, etc.

- According to the nature of the action, the workflow rule that follows is different. If signature management is activated for a document and a company, this document must then be signed so that it can be converted.

- This signature can then be made by the user or automatically. There are standard workflow rules automatically defined to cover the most common job cases. Below is an example of a circuit.


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Purchasing Signature Management Overview (continued) Implementing the signature circuit requires setting up rules for triggering notifications by workflow.

This setup is broken down into five steps: 1. Setup of assignment rules 2. Assignment of main signatures and definition of assignment criteria 3. Assignment of substitute signers 4. Link between assignment rule and workflow rule 5. Setup of planning workbench for notification tracking

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Assignment Rules Creating an assignment rule is the first setup step when implementing a signature circuit. It makes the link between the workflow rule and its distribution conditions.

For each company and each circuit, it is possible to define the number of signatures and the criteria for triggering the workflow rule. This criteria depends on the context in which the signature circuit runs. The assignment rule defines the structure and the fields of the user assignment screen. Validating the rule generates the screen for entering the list of recipient users and distribution criteria values.


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Assignment Rules (continued) User rules of assignment Use User rules of assignment (GESAWR) in the Setup > Workflow block to create or modify an assignment rule, define the data model, number of signatures, and table information. For each assignment rule, you must enter an ID and description. To make the rule specific to a company, you must select a company at the Company field; otherwise, leave the field blank.

The data model selected at the Data model field determines the tables available when evaluating the allocation rule.

- The model selected must be the same as the model associated with the Workflow rule using the allocation rule.

- For example, the POHSIG assignment rule is based on the PORDER data model. This model groups together three tables: PORDER, BPSUPPLIER, and AUTILIS, making it possible to enter criteria on these three tables in the assignment rule.

- Data models are defined through the Data models function under Development in the Development > Data and parameters block.

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Assignment Rules (continued) If the data model selected contains line tables associated with a header, you can enter the table line at the Table line field.

- If a table line is entered, this is the table used to determine the Workflow recipients.

- The Workflow using the corresponding allocation rule is set to Line type. At the Number of signatures field, enter the maximum number of signers for the circuit.

- The AWR activity code determines the maximum number of signers who can be declared in an assignment rule. It is a maximum of 10 by default.

- This number does not apply to substitute signers. - The screen generated by the validation of the rule contains, in addition to the criteria columns, as many User columns as entered at this field. Criteria

The criteria defined in the grid is used to set the Workflow rules’ triggering conditions. Each time a document is created, the system searches for an assignment rule.

-

If an assignment rule is set up, the system compares the values of the criteria with the document created.

- The results of this comparison combined with the list of users are used to determine the main signers.

Each row defined, creates a criteria. -

For each row, you determine the table accessed, the criteria (formula), column description, data type, length, local menu (if it’s a local menu), parameter, link (displays the long or short title for entered value), and default value.


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Assignment Rules (continued) Validation

Validation automatically occurs when creating or modifying an assignment rule. It is used to generate the screen for entering users and criteria values which are accessed during data entry. Standard rules

The standard assignment rules automatically created include: POHSIG (purchase order signature) - Criteria equals:

- Supplier Statistical group (First statistical group for the Supplier table). - Amount (Function returns the order total converted to the Company currency for the rate type and date of the order.)

- Budget overrun (Boolean statement “Number of lines exceeding budget > 0” returns 0 for no lines, or 1 for some lines. Add 1 to be consistent with Local menu 1 (1=No; 2=Yes)). PSDSIG (Purchase request line signature) – Criteria equals:

- 1-Product statistical family - Line amount - Budget overrun PSHSIG (purchase request signature) – Criteria equals:

- 1-Supplier Statistical group - Amount

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User Assignment After defining the assignment rules, the next step is to define combinations of criteria and users to determine the recipients and trigger the workflow.

It is possible to assign the maximum number of signers entered in the assignment rule.

- These recipients are all Sage ERP X3 users and they represent the document’s main signers.

- The signature circuit is not complete until all the main users or their delegates have signed. It is common practice to define the maximum authorized budget levels. Each level has its own signature circuit.

- This makes it possible to find the right signers. - For example, the managers and directors only sign exceptional orders which have high amounts. Supplier stat group 20 20

Maximum value

Budget overrun

User 1

100000

No

ACHE

200000

No

ACHE


User 2 DIRG

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User Assignment (continued) User assignment Use User assignment (GESAWV) in the Setup > Workflow block to create the necessary criteria and user combinations for each assignment rule created. This function can also be accessed by clicking Values for a specific assignment rule in the User rules of assignment function. You can create user assignments for an assignment rule or an assignment rule/company combination.

Select the Formula/user check box if you want to define a formula for determining the user in either the Default user section or a user field.

- For example, the [F:AUS]CHEF(0) formula identifies the user’s immediate manager as user. The Default user section is used to list the users who are recipients if no criteria combination is matched.

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User Assignment (continued) Use the Values section to define the criteria values and the required signers. -

You are not required to define a signer for every user column in the Values section.

- For example, in the above example if the purchase request line amount is less than or equal to 100, only the ADMNA user is required to sign.

- Otherwise, both the PUR and ADMNA users are required to sign. When using budgets as a criteria, it is common practice to define the maximum authorized budget levels. Each level has its own signature circuit.

- This makes it possible to find the right signers. - For example, the managers and directors only sign exceptional orders which have high amounts. Supplier stat group 20 20

Maximum value

User 1

100000

ACHE

200000

ACHE


User 2 DIRG

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Delegated Users In addition to defining signers for an assignment rule, you can also define delegated users. Delegated users are replacement signers if the main signer is absent, a user who receives a copy of the emails or a line manager authorized to sign in exceptional circumstances when there are no signers available.

There are three types of delegation:

- Copy for information – The delegate does not have the power to sign documents but receives a copy of each circuit mail addressed to the main user.

- With signature authority – The delegate has the power to sign. To manage signature conflicts, if several people are authorized to sign a document, the first who signs sends an email to the other authorized personnel.

- Exceptional – The delegate has the power to sign but does not receive notification by email. They may consult the notifications in the workflow planning workbench intended for the person for whom they are exceptional signer. A delegation can be permanent or temporary. For temporary delegates, the start and end validity dates are entered.

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Delegated Users (continued) User delegates Use User delegates (GESAWU) in the Setup > Workflow block to define the user delegates for a specific user.

The Type field is used to restrict the delegate so that they are only taken into account if the workflow event to be processed has a nature equal to the nature selected. The Type of delegate field determines the type of delegate. The options are: With authority, Copy for information, and Exceptional. If the delegate is temporary, you must define the appropriate validity dates.


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Manage Signatures Although you define signature rules and assignments, you must also indicate in general parameters that you are managing signatures. This is done through the Parameter values (ADPVAL) function in the Setup > General parameters block. -

For Purchasing, you define these settings for the ACH Purchase parameter and APP group.

For the APPPOC, APPPOH, and APPPSH parameters, you can select whether signatures are required (Yes, Mandatory); optional (Yes, Optional), or not used (No). You can also select whether to close orders and purchase requests if signatures are refused and whether to require a signature at the purchase request header level, not just the line items.

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Workflow Monitor Use Workflow monitor (SAIWRKPLN) in the Usage > Usage block to track the documents awaiting signature. It shows the context of the circuit’s triggering, the messages sent, and the signature history. You can read and manage the notification messages sent by the workflow rules.

- For example, a buyer can read the signature requests sent by their department, as well as information concerning the trigger event. Messages are displayed in summary tables called Planning Workbenches. -

It can be fully set up by entry transaction (up to 8 tabs) and can be customized by applying presentation style and sorting order.

-

For example, in the figure below there are separate tabs for PR (purchase request) signatures, PR history, Order signatures, Order history, etc.

You can view such information as the PR number, signature flag, recipient, product, amount, etc. You can perform signature actions on each pending document (refusal, validation, cancellation).

- This is done by clicking the Actions icon on a line and selecting Signature. You can view the request history by clicking the Actions icon on a line and select Approval request history. You can also click the Actions icon on a line and select Return to access the original document.


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Workflow Monitor (continued) Action hyperlinks in workflow emails According to the structure of the workflow rule, it is possible for the notification emails to include action hyperlinks which allow the recipients to accept or reject a signature by clicking directly on the hyperlink. Note: Do not use client workflow mail sending because the originator of the message will have the message in the sent-items of their mail client (Outlook, etc.). Therefore, they could click on the approval link themselves.

User parameters You can restrict access to the Workflow monitor function when defining information for the user record. This is done through the User menu profile function in the Setup > Users block. The CONSAWW function must be added to the user menu.

Authorization levels You can define the following three authorization levels in the Functions function in the Development > Processes block. Code A: Signature authorization Code G: Cancellation authorization Code U: All authorizations to consult, sign and cancel any document for any signer

Planning workbench You can define a planning workbench (entry transaction) using the Workbench parameters (GESAWW) function in the Setup > Workflow block. For each workbench, you can set the number of tabs and the maximum number of lines displayed. A tab has a short title and a long title and can display filtered information. For each tab, you can define the fields to display. The list of suggested fields cannot be modified as it depends on the context defined by the filter; however, you can modify the field title. The setup is also used to determine the table’s sorting order and to apply the conditional styled defined in the Presentation styles function in the Parameters > General parameters block.

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Standard Workflow Rules – PR Signatures Signatures on the purchase request documents can be managed either in the Header or on the Line. This means that: In the first case, only the Header must be signed by all people in the circuit so the purchase request can be turned into an order. In the second case, all the purchase request lines must be signed so that the purchase request can be turned into an order.

The PSHSIG workflow rule uses the PSHSIG assignment rule. It is triggered when creating and modifying the purchase request regardless of the origin (e.g. via an ordering workbench). It compares the values of the document’s fields with the values of the assignment rule’s criteria.

- If the values match and a list of recipients is set up, it can call upon other workflow rules and trigger tracking and actions.


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Standard Workflow Rules – PR Signatures (continued) Parameters & prerequisites The PSHAPPHEA ( 1) parameter is used to manage a signature circuit on the purchase request line or globally if signature management is active. It can be defined at the company level.

- No indicates purchase requests are signed on the line and Yes indicates purchase requests are signed in the Header. The APPSH ( 2) parameter is used to activate signature management on the purchase requests and to define whether a signature circuit is mandatory or optional. The PSHAPPCLE parameter makes it possible to automatically close a purchase request if a signature is refused. It is defined at the company level.

PSHSIG workflow rule – purchase request signature management The following conditions are mandatory for activating the PSHSIG workflow rule when creating or modifying the purchase request:

- The PSHAPPHEA parameter is set to Yes - The APPPSH parameter is set to Yes; Optional or Yes; Mandatory - The request is not closed. When creating a purchase request ( 3), the system checks the parameter values. If signature management is activated in the document header, the PSHSIG workflow rule is running.

- This rule looks for the assignment rule which shares the same data model as the workflow rule. By comparing the criteria with the purchase request lines, it determines the first signer.

- The number of signers in the circuit depends on the number of users entered on each rule value. The purchase request remains partly signed if the last signer has not signed.

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Standard Workflow Rules (continued) The PSHSIG workflow rule triggers the SIGWRK action according to the following three cases:

- If the first signer is the user who created the purchase request, then signature is automatic. The SIGWRK actions sets the value of the signature field to Yes automatic with a response code set to VAL Validation. Notification is sent to the administrator via the PSHSIGNCR workflow rule (No signature rule).

- If no signature circuit was found and the value of the APPPSH parameter is set to Yes; Optional ( 4), signature of the document is automatic with an AUT response code (Automatic signature). Notification is sent to the administrator via the PSHSIGNCR workflow rule.

- If no signature circuit was found and the value of the APPPSH parameter is set to Yes; Mandatory ( 5), the signature of the document is automatic with an NCR response code (Undefined circuit). Notification is sent to the administrator so they can create a new assignment rule value. This notification is sent by the PSHSIGNCR workflow rule. The administrator must create a new rule. For the purchase request to be linked to the new rule, you must modify it. If no condition allows the SIGWRK action to be run ( 6), a message is sent to the first signer and a signature request is assigned to it. Signing the document triggers the PSHSIGVAL rule. The closing of a purchase request awaiting signature cancels the last signature request and interrupts the signature circuit.

- In this case, the pre-commitments put through are reversed. - If the purchase request is reactivated (close action on line) then the signature circuit is re-activated from the start.

- The closing of a purchase request or a fully signed purchase request line does not affect the signature circuit.


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Standard Workflow Rules – PR Signatures (continued) Principle of circuit in modification When receiving a signature request email sent by the PSHSIG rule, the user may give three possible answers. A signature refusal materialized by a rejection (response code = REJ) A signature cancellation (response code = ANU) A document validation (response code = VAL)

You can give responses using the Signature option in the Signature menu for the purchase request or through the Workflow Monitor in the operation menu.

- The signature block is only accessible after the request has been created. A workflow rule manages each of these three cases and is used to inform the requester or the signers of the purchase request's status. Any user with the ADMNA profile has the right to sign, cancel, and reject a document in the signer’s name. PSHSIGVAL workflow rule – PR signature

Each document validation triggers the PSHSIGVAL rule (response code = VAL). This rule updates the s ignature field in the purchase request's header. This update is repeated on all the document's lines. If the signer is not the last on the circuit, this rule sends a signature request for the following signer and the signature field is equal to Partially. If the signer is the last on the circuit; this rule launches the PSHSIGNOT rule signature notification and the signature field is equal to Fully.

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Standard Workflow Rules – PR Signatures (continued) PSHSIGNOT workflow rule – PR signature notification

When the purchase request is signed by the last signer, the PSHSIGVAL workflow rule triggers the PSHSIGNOT rule to send a notification and an email to the person who originally requested the document. The rule sends no message if the last signer is also the requester. By setting up the workflow rule, it is possible to deactivate either the sending of an email or the creation of a notification in the workflow monitor. PSHSIGCAN workflow rule – cancelling a PR signature

A signature is cancelled via the Workflow monitor. In the PR history tab, the signer has the list of documents they have signed. By clicking the Actions icon on each line, you can click the Cancel button which you can use to trigger the PSHSIGCAN rule. This workflow rule deletes the various tracking operations generated by the signature and sends a cancellation message to the users informing of the signature previously made. These users are:

- The requester - The signers - The users included in the distribution list defined in the user assignment function. The cancelled document appears in the history of each of the circuit's signers with the signature cancelled status. The PSHSIGCAN rule updates the signature field in the header and the purchase request's lines and resets the status of the signature in the situation which precedes the cancellation. PSHSIGVAL workflow rule – PR rejection

Rejecting a document is entered through the Signature Option on the Signature menu for a purchase request or by right clicking on the line to be signed and selecting Signed in the Workflow Monitor. It is possible to associate a refusal reason. The reasons are set up in miscellaneous table 55. The rejection runs the PSHSIGREJ workflow rule which sends a notification message to the user who requested the purchase request. The other users included in the distribution list (signers or recipients by default) also receive a message in their workflow monitor. According to the value of the PSHAPPCLE parameter, the PSHSIGREJ rule automatically closes all the purchase request lines. In this case, you must reopen each of the purchase request lines to reactivate the signature circuit. Sage North America Certified Student Course Curriculum - Version 3.0 Copyright © 2014 Sage, Inc. All Rights Reserved.

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Standard Workflow Rules – PR Signatures (continued) Managing pre-commitments The diagram below shows the impact the signature circuit has on managing precommitments.

Parameters in pre-commitments

PURCMMRP Parameter - This parameter activates the management of precommitments on the purchase requests. It can be defined at the site level.

- Activating this parameter is necessary in order to check the budget overrun used in the assignment rules. PSHCMMLEV Parameter - This parameter is used to define the point in the signature circuit at which the pre-commitment will be generated. This parameter can be defined at the site level and it can take three values:

- Upon the first signature - Upon the last signature - Upon creation of the purchase request line Note: If there is no signature management for the company, the pre-commitments are managed when creating the purchase request line regardless of the PSHCMMLEV parameter.

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Standard Workflow Rules – PR Signatures (continued) Upon creation of the purchase request

In principle, the pre-commitments are automatically generated the moment the document is signed. Nevertheless, there are two special cases which automate their management:

- If signature management is not activated (APPPSH parameter = No), a precommitment is automatically generated when a new purchase request line is created. In this case, the PSHCMMLEV parameter value is not taken into account.

- If the value of the PSHCMMLEV parameter is set to First signature or Last signature and if the value of the APPPSH parameter is set to Yes optional, a precommitment is automatically generated when the purchase request is created if no signature circuit is found.

The DIVALLCMM action is then run by the PSHSIG rule. Upon signature

According to the value of the PSHCMMLEV parameter, if the pre-commitments must be generated upon the first signature, the PSHSIGVAL workflow rule runs the DIVALLCMM action to create a pre-commitment for all the purchase request lines. If the pre-commitments must be generated upon the last signature, the PSHSIGNOT workflow rule runs the DIVALLCMM action to create a pre-commitment for all the purchase request lines. In the event of signature cancellation

All the pre-commitments generated in the first or last signature are reversed to the signature's cancellation. The action code used is DIVALLCMM on the PSHSIGCAN workflow rule. If signature is rejected

Rejecting a signature automatically cancels the pre-commitments for all the purchase request lines. The action code used is DIVALLCMM on the PSHSIGREJ workflow rule.


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Standard Workflow Rules – PR Signatures (continued) Purchase request line signatures The signature circuits for the purchase request lines are identical to those in the header. The workflow rules set up beforehand in order to manage these circuits are more or less the same. The parameters can take the same values but their operation only applies to the document's lines. Only the differences of each workflow rule between managing in the header and on the line are discussed. The PSDSIG workflow rule uses the PSDSIG assignment rule. It is triggered when creating and modifying the PR line. Parameters in pre-requisites:

PSHAPPHEA Parameter - This parameter must have the NO value to manage a signature circuit on the PR's line. It may be defined at the folder, legislation and company level.

- A PR line must be fully signed so that it can be turned into an order. PSHAPPCLE Parameter - With this parameter it is possible to automatically close a PR line if a signature is refused. It is defined at company level. PSHSIG workflow rule – PR signature management

The three following conditions are mandatory for activating this rule when creating or modifying the purchase request:

- The PSHAPPHEA parameter is set to No - The APPPSH parameter is set to Yes optional or Yes mandatory. - The purchase request line has not been closed. When inserting a new line or when modifying a line, the PSDSIG workflow rule is run.

- This rule looks for the assignment rule which shares the same data model. By comparing the rule's criteria with the purchase request field values, it determines the first signer. The purchase request remains partly signed if the last signer has not signed. The PR remains partly signed if all the lines have not been fully signed. The balance of a PR line awaiting signature cancels the last signature request. If the line is reactivated by a re-opening, the signature circuit is reactivated from the beginning. When a purchase request is modified, deleted, or closed, the PSDSIGCAN rule is not triggered. The cancellation action used in this case cancels all active tracking without sending messages.

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Standard Workflow Rules – PR Signatures (continued) The PSDSIG workflow rule triggers the SIGWRK action used by the PSHSIG rule (management of signature in document header) depending on the following three cases:

- 1. If the first signer is the user who created the PR line, then signature is automatic.

- 2. If no signature circuit was found and the value of the APPPSH parameter is set to Yes mandatory, signature of the line is automatic with an NCR response code (Undefined circuit).

- 3. If no signature circuit was found and the value of the APPPSH parameter is set to Yes optional, signature of the document is automatic with an AUT response code (Automatic signature). The PSDSIGNCR workflow rule sends a notification to the administrator for cases 2 and 3. If no condition allows the SIGWRK action to be run, a message is sent to the first signer and a signature request is assigned to it. -

Signing the document triggers the PSDSIGVAL rule.

Signing the purchase request lines in modification

Unlike signature management in the document's header, signature on the line is only possible via the Workflow Monitor. There is no Signature option when clicking the Actions icon on a line. As for the purchase request, the user can refuse, validate or cancel their signature. Each modification of the PR line cancels the current signature and reactivates it, assumed it has not yet been signed by one of the signers. Note: A signed line cannot be modified. First you must cancel the signature. PSHSIGVAL workflow rule – PR signature

Each document validation triggers the PSHSIGVAL rule (response code = VAL). This rule updates the Signature field on the document's line and uses the value of this field in the header if the PR only has one line. If the signer is not the last on the circuit, this rule sends a signature request for the following signer and the signature field is equal to Partially. If the signer is the last on the circuit, this rule launches the PSDSIGNOT rule signature notification which is strictly identical to the previous description. -

The requester who receives the messages is in this case the user who has inserted the line and the signature field is equal to Fully.

Note: The PR is considered signed if all the lines are fully signed.


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Standard Workflow Rules – PR Signatures (continued) PSHSIGCAN workflow rule – cancelling a PR signature

Cancelling a signature is mandatory to be able to modify a signed line. It is performed through the Workflow monitor in the same way as for managing the document header. Modifying the line triggers the signature circuit again. Closing the PR line cancels the signature circuit. In this case, the PSDSIGCAN rule cancels all tracking linked to this line, cancels the last signature request sent to the next signer, but does not send messages to the users to inform them of the line's closure. This will be done by a manual workflow. This operation is also applied when deleting lines. PSDSIGREJ workflow rule – PR rejection

Rejecting a document is entered from the Workflow monitor. It works in a similar way to document rejection (managed in the header). According to the value of the PSHAPPCLE parameter, the PSHSIGREJ rule automatically closes the PR line. In this case, you must reopen the line to reactivate the signature circuit.

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Standard Workflow Rules – PO Signatures A purchase order's signature circuit starts when creating the document, regardless of its origin (from the purchase order, from the re-order plan, or the buyer's planning workbench). Note: Other than the information discussed in this topic, refer to the Standard Workflow Rules – PR Signatures topic for information, as it is the same.

After validating the purchase request, converting the purchase request into an order using the Generate button creates the order and activates the signature circuit. Unlike the PR, this circuit cannot be detailed in the order lines. A purchase order must be fully signed in order to be printed, received and invoiced. Triggering the circuit is managed by the POHSIG workflow. Note: For an inter-site or inter-company flow, the sales order is only generated when the purchase order is fully signed.


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Standard Workflow Rules – PO Signatures (continued) Principle of circuit in creation The POHSIG workflow rule uses the POHSIG assignment rules.

Parameters in pre-requisites APPPOH Parameter ( 1) - This parameter is used to activate signature management on purchase orders. It can take the following values:

- No: Deactivation of signature management. The signature field is set to No management.

- Yes optional: Activation of signature management. If no signature circuit is found, it is signed automatically.

- Yes mandatory: Activation of signature management, it is not possible to receive and invoice if the order has not been signed. POHAPPCLE Parameter - With this parameter it is possible to automatically close a purchase order if a signature is refused. It is defined at the company level. PURCMM Parameter - With this parameter it is possible to create commitments when creating the order. PURCMMDAT Parameter - This parameter is used to define the date to be used when creating a commitment. The possible values are:

- Order date - Scheduled reception date

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Standard Workflow Rules – PO Signatures (continued) POHSIG workflow rule – order signature management The three following conditions are mandatory for activating this rule when creating or modifying the purchase order:

- The APPPOH parameter is set to Yes optional or Yes mandatory. - The order is not closed. - The order is not fully signed. Upon creation of the purchase order ( 2), the POHSIG workflow rule is run. It determines the first signer by comparing the rule's criteria with the values of the purchase request fields. The purchase order remains partly signed if the last signer has not signed. Each purchase order modification cancels the signature circuit and retriggers it. Only the purchase order's balance can permanently terminate the circuit. The POHSIG workflow rule triggers the SIGWRK action depending on the following three cases:

- If the first signer ( 3) is the user who created the purchase order, then signature is automatic.

- If no signature circuit was found and the value of the APPPOH parameter is set to Yes mandatory ( 4), signature of the document is automatic with an NCR response code (Undefined circuit).

- If no signature circuit was found and the value of the APPPOH parameter is set to Yes optional, signature of the document is automatic with an AUT response code (Automatic signature). Notification is sent to the administrator via the POHSIGNCR workflow rule for each of these three cases. If no condition allows the SIGWRK action to be run ( 5), a message is sent to the first signer and a signature request is assigned to it. Signing the document triggers the POHSIGVAL rule.


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Standard Workflow Rules – PO Signatures (continued) Principle of circuit in modification When receiving a signature request email sent by the POHSIG rule, the user can refuse, validate or cancel their signature.

Responses may be given via the menu Signature > Signature on the purchase order object or via the workflow monitor in the Operation menu. The POHSIGVAL, POHSIGNOT, POHSIGCAN and POHSIGREJ rules work in the same way as in the purchase request.

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Standard Workflow Rules – Open Orders Signatures An open order's signature circuit starts when the document is created or modified. Triggering the circuit is managed by the POCSIG workflow rule. Note: Other than the information discussed in this topic, refer to the Standard Workflow Rules – PR Signatures topic for information, as it is the same.

Unlike the purchase request, this circuit cannot be detailed in the order lines. Only open orders can be signed. There is no signature management for the delivery requests. A purchase order must be fully signed to be valid for delivery requests. The commitments are automatically created upon creation of the delivery requests according to the PURCMM parameter. It is therefore not possible to check the budget overrun in the open order signature rules. Note: For an inter-site or inter-company flow, the sales order is only generated when the purchase order is fully signed.


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Standard Workflow Rules – Open Orders Signatures (continued) Principle of circuit in creation The POCSIG workflow rule uses the POCSIG assignment rule.

Parameters for open orders APPPOC Parameter ( 1) - This parameter is used to activate signature management on the open orders and to define whether a signature circuit is mandatory or optional. This parameter can take the following values:

- No: Deactivation of signature management. The signature field on the purchase order is set to No management. Creation of delivery requests is never blocked.

- Yes optional: Activation of signature management. If the open order does not fill the criteria defined in the user assignment rule, it is signed automatically.

- Yes mandatory: Activation of signature management and blocking of delivery requests if the order has not been fully signed.

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Standard Workflow Rules – Open Orders Signatures (continued) POCSIG workflow rule – order signature management The following conditions are mandatory for activating this rule when creating or modifying the purchase order:

- The APPPOC parameter is set to Yes optional or Yes mandatory. - The open order is not closed. - The order is not fully signed. Upon creation of the purchase order ( 2), if signature management is activated for the company, the POCSIG workflow rule is run to determine the first signer. The purchase order remains partly signed and can be modified if the last signer has not signed. Each modification of the open order cancels the signature circuit and reactivates the POCSIG rule. Only the open order from the delivery request can permanently close the circuit. The POCSIG workflow rule triggers the SIGWRK action depending on the following three cases:

- 1. If the first signer is the user who created the purchase order or is the buyer, then signature is automatic. The SIGWRK action sets the value of the signature field to Yes automatic with a response code set to VAL Validation.

- 2. If no signature circuit was found and the value of the APPPOC parameter is set to Yes optional ( 3), signature of the document is automatic with an AUT response code (Automatic signature).

- 3. If no signature circuit was found and the value of the APPPOC parameter is set to Yes mandatory ( 4), the signature of the document is automatic with an NCR response code (Undefined circuit). Notification is sent to the administrator via the POCSIGNCR workflow rule (No signature rule) for cases 2 and 3. If no condition allows the SIGWRK action to be run ( 5), a message is sent to the first signer and a signature request is assigned to it. Signing the document triggers the POCSIGVAL rule.


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Standard Workflow Rules – Open Orders Signatures (continued) Principle of circuit in modification The POCSIGVAL, POCSIGNOT, POCSIGCAN and POCSIGREJ rules work in the same way as in the purchase request.

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Lesson 6 Reports & Inquiries In the following topics, you will how about some of the key reports and inquiry tasks available. The topics in this lesson include: !

Reports

!

Inquiries


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Reports There are several reports available on various blocks under Printouts that detail information on settings and transactions entered in Purchasing.

Printouts > Reports There are various reports available in this function including purchasing external documents, purchase listings for orders and invoices, and purchase prices. The external documents printed include contracts, purchase orders, delivery notes, request for quotes, and RFQ reminders.

- You can also print these reports from the External documents or Internal documents functions on the Printouts > Prints/group > Purchasing block. The purchase listing reports include such reports as the Purchase Invoice List, Contract PO List, and RFQ list. You can define selection criteria for the various reports include company and site, as well as determine if the report is printed or previewed.

Prints/group > Purchasing There are several different functions that categorize the reports specific to External documents, Internal documents, Prices, Analysis, and Lists. The External documents function includes reports that are specific to reports or forms that are delivered to individuals outside of the company, such as a supplier. They include such reports/forms as the request for purchase order, contract order, and return notes. The Internal documents function includes reports that are specific to internal needs such as the Purchase request notes, Receipt notes, Invoice control notes, and Return picking tickets. The Price lists function includes reports that are specific to purchase price information. There reports allow you to view pricing information defined in different formats. The Analysis function includes reports providing information on purchase orders and delivery requests. They include the Outstanding POs, PO status report, Shipment request listing, and Subcontracting cost detail reports. The Stock to be moved in function includes two reports: Pick location replenishment and List of storage. The Lists function includes several reports that detail information defined and include reports such as Invoicing elements, Purchase invoice list, Detail purchase invoice request list, Contract PO listing, and the PO listing/receiving worksheet.

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Inquiries There are many inquiries available that allow you to review information and transactions in Purchasing. You can access inquiry functions from the Purchasing > Inquiries block. Additionally, you can access the same inquiry functions by clicking the Actions icon for a transaction or from the Inquiry block displayed in the function window. Each inquiry function provides you with settings you can define to determine the information displayed. For example, many inquiry functions allow you to view information specific to a site and order range. A single inquiry, the Purchase journal traceability function, is available from the Purchasing > Inquiries block. This provides journal entry information for transactions entered in Purchasing.

Purchase Requests Use the Requested lines function on the Purchase requests block to view information for request lines entered. You can define selection criteria to filter the information displayed.

Orders The Orders block includes inquiry functions that allow you to view information specific to orders entered in Purchasing.

Receipts The Receipts block includes inquiry functions that allow you to view information for receipt lines and receipts entered by period.

Invoices The Invoices block includes inquiry functions providing information on invoice lines, invoices by period, and invoice ranking for suppliers and payment approval.

Returns The Returns block includes inquiry functions providing information on returns entered, return lines, returns by period, and return ranking chart by supplier.


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Summary You have learned: How to define settings for such items as the purchasing site, suppliers, and products to be used in the Purchasing module. How to set up and define the purchase pricing information includes the structure, reasons, and parameters. Additionally, you will learn how to enter price information and active price lists. How to enter a request for a quote as well as the various types of orders including purchase orders, contract orders, direct orders, and inter-site/inter-company orders. How to receive items with or without an order, as well as how to enter invoices and credit memos received from the supplier.

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SageX3 Purchase Fundamentals

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