Activities for Lesson 7:

Setting Up Procurement -
Common Functions
Overview

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Activities for Lesson 7: Setting Up Procurement - Common Functions EDAG0007.DOCX

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Activities for Lesson 7
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Procurement - Common Functions: EDAG0007.docx] is responsible for ensuring this document
is necessary, reflects actual practice, and supports corporate policy.

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Demonstration 7-1: Defining a Supplier Business Classification
Lookup
Overview
This demonstration shows how to enter a supplier business classification lookup.

Prerequisites
None

User Login
prc00.instructor

Steps
1. In the Navigator, click the Setup and Maintenance work area link.
2. On the Setup page, select the Procurement offering.
3. On the Setup: Procurement page, click the Suppliers functional area.
4. In the Show field select All Tasks.
5. Click the Manage Business Classification Lookup task.
6. To add a new browsing category, on the Manage Business Classification Lookup page,
click the Add icon in the POZ: Business_Classifications: Lookup Codes region.
7. In the open row in the table, enter PRC_COMPUTER_CONSULTING as the Lookup Code.
8. Enter your instructor number 00 as the display sequence value.
9. Select today’s date as the Start Date.
10. Enter PRC Computer Consulting Services as the Meaning.
11. Enter PRC class business classification lookup as the Description.
12. Click Save and Close.

Demonstration Complete
You have entered a supplier business classification lookup.

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Demonstration 7-2: Defining a Products and Services Hierarchy
Overview
This demonstration shows how to add a browsing category, and insert an item category, into a
products and services hierarchy.

Prerequisites
None

User Login
prc00.instructor

Steps
1. In the Navigator, click the Setup and Maintenance work area link.
2. On the Setup page, select the Procurement offering.
3. On the Setup: Procurement page, click the Suppliers functional area.
4. Click the Manage Supplier Products and Services Category Hierarchy task.
Hint: To see the task you may need to set the Show field to All Tasks.
5. On the Manage Supplier Products and Services Category Hierarchy page, select the
Root Category row.
6. Click the Create icon to add a new browsing category.
7. In the Create Browsing category dialog box, enter the category name: PRC Hardware.
8. Optionally, provide a Description.
9. Click Save and Close.
10. Select the new PRC Hardware row and click Insert Item Categories.
11. From the list, select StdFasteners.
12. Click Apply, and Done.
13. Expand the PRC Hardware browsing category row to view the item category you added.
14. Click Done.

Demonstration Complete
You have added a browsing category, and inserted an item category, into a products and
services hierarchy.

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Demonstration 7-3: Defining Payment Terms
Overview
This demonstration shows how to create a payment term with a discount.

Prerequisites
None

User Login
prc00.instructor

Steps
1. In the Navigator, click the Setup and Maintenance work area link.
2. On the Setup page, select the Procurement offering.
3. On the Setup: Procurement page, click the Procurement Foundation functional area.
4. Click the Manage Payment Terms task.
Note: If you see two versions of the Manage Payment Terms task, use the one that does
not have a Select link in the Scope column.

Create the Payment Term

5. On the Manage Payment Terms page, click the Create icon.
6. On the Create Payment Terms page, enter the following:
 Name = PRCXX Term, where XX is the number for your instructor.
 Description = Net in 90 days. Discount for payment in 30 days.

Create the Discounts

7. In the Installments region, click the Add icon to create a new row.
8. Enter:
 Due % = 100
 Days = 90
9. In the Discount region, under the First Discount table header, enter:
 Discount % = 10
 Days = 30
10. In the Set Assignments region, click the Add icon to create a new row.
11. Enter:
 Set Code = COMMON
12. Click Save and Close.
13. Click Done.

Demonstration Complete
You have created a payment term with a discount.

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Demonstration 7-4: Creating a Purchasing Line Type
Overview
This demonstration shows how to create a purchasing line type.

Prerequisites
None

User Login
prc00.instructor

Steps
1. In the Navigator, click the Setup and Maintenance work area link.
2. On the Setup page, select the Procurement offering.
3. On the Setup: Procurement page, click the Procurement Foundation functional area.
4. Click the Manage Purchasing Line Types task.
Hint: To see the task you may need to set the Show field to All Tasks.
5. On the Manage Purchasing Line Types page, click the Add icon.
6. Enter the following information:
 Line Type = PRC Computer Goods
 Description = PRC Special order computer goods
 Code = PRCSOCGoods
 Purchase Basis = Goods
 Category = Computer Supplies (search on the value comp)
 UOM = Ea
 Leave remaining fields empty.
7. Click Save and Close.

Demonstration Complete
You have created a purchasing line type.

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Demonstration 7-5: Configuring a Procurement Business Function
Overview
This demonstration shows how to configure the procurement business function for a business
unit.

Prerequisites
To complete this demonstration successfully, you must first complete demonstrations 4-4:
Defining Business Units, 5-1: Managing Procurement Agents, and 7-5: Creating a Purchasing
Line Type.

User Login
prc00.instructor

Steps
1. In the Navigator, click the Setup and Maintenance work area link.
2. On the Setup page, select the Procurement offering.
3. On the Setup: Procurement page, click the Procurement Foundation functional area.
4. Click the Configure Procurement Business Function task.
5. On the Specify Procurement BU dialog box, select the business unit: PRC Vision
Manufacturing, and click OK.
6. In the General region, enter the following:
 Payment Terms = End of Month
 Buyer = Your login user. For example, search for Instructor, PRC00. Hint: To display
in this field your login user must first have been set up as procurement agent.
 Inventory Organization = 001 Seattle
 Line Type = The line type you defined previously: PRC Computer Goods.
 Currency = USD
 Leave the other fields blank or accept the default.
7. In the Purchasing region, enter the following:
 Maximum File Size Megabytes = 100
 Select the Default promise date from requested date check box.
8. In the Sourcing region, enter the following:
 Rank Indicator = Best or trailing
 Select the Display best price in blind negotiations check box.
9. Click Save and Close.
10. In the confirmation message, click OK.

Demonstration Complete
You have configured the procurement business function for a business unit.

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Demonstration 7-6: Managing Common Options for Payables and
Procurement
Overview
This demonstration shows how to review the setup for the Common Options for Payables and
Procurement task.

Prerequisites
None.

User Login
prc00.instructor

Steps
1. In the Navigator, click the Setup and Maintenance work area link.
2. On the Setup page, select the Procurement offering.
3. On the Setup: Procurement page, click the Procurement Foundation functional area.
4. Click the Manage Common Options for Payables and Procurement task.
Hint: To see the task you may need to set the Show field to All Tasks.
5. On the Manage Common Options for Payables and Procurement page, select the
business unit: US1 Business Unit.
6. Discuss the following:
 Expense Accruals
 Self-Billed Invoices
 Legal Entity Information
7. Click Cancel.

Demonstration Complete
You have reviewed the setup for the Common Options for Payables and Procurement task.

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Practice 7-1: Configuring Your Business Unit
Overview
You will perform some additional Procurement-specific configuration tasks required to use your
procurement business unit to enter transactions.

Prerequisites
To complete this practice successfully, you must first complete practice 4-1: Creating a
Location, practice 4-2: Creating a Business Unit, practice 4-3: Creating an Inventory
Organization.

User Login
prcXX.student, where XX is the number of your student user.

Steps
1. In the Navigator, click the Setup and Maintenance work area link.
2. On the Setup page, select the Procurement offering.
3. On the Setup: Procurement page, click the Procurement Foundation functional area.
4. Click the Configure Procurement Business Function task.

Configure Procurement Business Function for Your BU

5. In the Specify Procurement BU dialog box, select the business unit you created earlier.
For example, PRCXX Business Unit, where XX is the number of your student user. Then
click OK.
6. On the Configure Procurement Business Function page, enter the General business
unit details:
 Inventory Organization = your Inventory Org. For example, PRC XX Org, where XX is
the number of your student user.
 Currency = USD
 Buyer = your student user. For example: Student, PRCXX where XX is the number of
your student user.
7. Enter Purchasing details:
 Maximum File Size Megabytes = 20
8. Click Save and Close.
9. Click OK to the confirmation.

Configure Requisitioning Business Function for Your BU

10. On the Setup: Procurement page, click the Procurement Foundation functional area.
11. Click the Configure Requisitioning Business Function task.
12. In the Specify Requisitioning BU dialog box, select your PRCXX Business Unit, where XX
is the number of your student user. Then click OK.
13. On the Configure Requisitioning Business Function page, in Default Procurement BU,
verify your PRCXX Business Unit.
14. In Ship-to Location enter your location: PRCXX Location, where XX is the number of your
student user.
15. Click Save and Close.
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16. Click OK to the confirmation.

Common Options for Payables and Procurement

17. On the Setup: Procurement page, click the Procurement Foundation functional area.
18. Click the Manage Common Options for Payables and Procurement task.
Hint: You may need to set the Show field to All Tasks to see the task.
19. On the Manage Common Options for Payables and Procurement page, in Business
Unit, select your PRCXX Business Unit, where XX is the number of your student user.
20. Enter the following configuration:
Hint: Enter the value for Liability. Then copy, paste, and modify as indicated of the other
fields.
 Liability = 101.10.22100.000.000.000
 Prepayment = 101.10.13500.000.000.000
 Conversion Rate Variance Gain = 101.10.78630.120.000.000
 Conversion Rate Variance Loss = 101.10.78630.120.000.000
 Discount Taken = 101.10.77600.120.000.000
 Miscellaneous = 101.10.60540.120.000.000
 Freight = 101.10.62510.120.000.000
 Realized Gain Distribution = 101.10.78610.120.000.000
 Realized Loss Distribution = 101.10.78610.120.000.000
21. For Accrue Expense Items select At receipt.
22. Click Save and Close.

Receiving Parameters for Your Inventory Organization

23. On the Setup: Procurement page, click the Receiving functional area.
24. Click the Manage Receiving Parameters task.
25. In the Select Organization dialog box, select your inventory organization: PRCXXO, where
XX is the number of your student user. Click OK.
26. On the Manage Receiving Parameters page, select or enter the following:
 Receipt Days Exceed Action = None
 Over-Receipt Action = None
 Receipt Routing = Direct delivery
 Allow substitute receipts checkbox = deselected
 Receipt Number: Generation = Automatic
 Receipt Number: Type = Numeric
 Receipt Number: Next Number = 1
 RMA: Receipt Routing = Direct delivery
 RMA: RMA Validate Lots = Unrestricted
27. Click Save and Close.

Practice Complete
You have performed Procurement-specific configuration tasks required to use your procurement
business unit to enter transactions.
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Practice 7-2: Adding Roles to a User
Overview
In this practice you will view your student user’s security roles, and see how to add roles to a
user account.

Prerequisites
To complete this practice successfully, you must first complete practice 4-2: Creating a
Business Unit, and practice 4-3: Creating an Inventory Organization.

User Login
prcXX.student, where XX is the number of your student user

Steps
1. In the Navigator, under Tools, click Security Console.
2. The Security Console opens displaying the Roles tab and page.
3. Click the Users tab.
4. On the User Accounts page, leave the Search field set to All. In the associated text box
enter your student’s sign on user name. For example, prcXX.student, where XX is the
number of your student user. Then click the Search button.
5. Click the User Login link.
6. On the User Account Details page, verify your student user belongs to US1 Business
Unit, and note the roles assigned to your user.
7. Click Edit.
8. On the Edit User Account page, click Add Role.
9. On the Add Role Membership dialog, enter Procurement Requester and click Search.
10. In the search results select the role: Procurement Requester
(ORA_POR_PROCUREMENT_REQUESTER_ABSTRACT)
11. Click Add Role Membership.
12. Click OK.
13. Repeat the previous steps to add additional roles:
 Warehouse Manager (ORA_INV_WAREHOUSE_MANAGER_JOB)
 Accounts Payable Specialist
(ORA_AP_ACCOUNTS_PAYABLE_SPECIALIST_JOB)
 Accounts Payable Manager (ORA_AP_ACCOUNTS_PAYABLE_MANAGER_JOB)
 Accounts Payable Supervisor
(ORA_AP_ACCOUNTS_PAYABLE_SUPERVISOR_JOB)
14. When all the roles have been added in the Add Role Membership dialog box, click Done.
15. Click Save and Close.

Add the BU Information for the Roles

9. In the Navigator, click the Setup and Maintenance work area.
10. On the Setup page, select the Procurement offering.
11. On the Setup: Procurement page, click the Users and Security functional area.
12. Click the Manage Business Unit Data Access for Users task.
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 Hint: To see the task you may have to set the Show field to All Tasks.
13. On the Manage Data Access for Users page, in the Search Results section, click the
Create icon.
14. In the Create Data Access for Users dialog box, search for your student User Name for
example, prcXX.student.
15. Search for the Role: Procurement Requester.
16. Search for the Security Context: Business unit.
17. Search for the Security Context Value: Your business unit. For example, PRCXX Business
Unit, where XX is the number of your student user.
18. Repeat the previous steps to add additional data access:
Note: Use the Duplicate icon to add a row for each role.
 Warehouse Manager <your inventory organization>. For example, PRCXXO
 Accounts Payable Specialist <your BU>. For example, PRCXX Business Unit
 Accounts Payable Manager <your BU>. For example, PRCXX Business Unit
 Accounts Payable Supervisor <your BU>. For example, PRCXX Business Unit
19. Click Save and Close.

Review the User Data Access by Role

20. In the Manage Data Access for Users page, ensure the radio button is set for Users with
Data Access
21. Search for and select your student User Name. For example PRCXX.student.
22. Search for and select the Role, for example, Procurement Requester.
23. Click Search, the role and business unit access recently added to your student user will be
listed.
24. Click Done.
25. Sign out.

Practice Complete
You have added additional non-Procurement business unit roles to your user.

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Practice 7-3: Configuring Transaction Accounting
Overview
This practice is optional. It is not needed for any of the subsequent practices included in this
course, and will not impact any other practices included in this course.
You will use the Transaction Account Builder to map an expense account to your business unit,
when one is not defaulted through the normal process.

Prerequisites
To complete this practice successfully, you must first complete practice 4-2: Creating a
Business Unit.

User Login
prcXX.student, where XX is the number of your student user

Steps
1. In the Navigator, click the Setup and Maintenance work area link.
2. On the Setup page, select the Procurement offering.
3. On the Setup: Procurement page, click the Procurement Transaction Account Rules
functional area.
4. Click the Manage Mapping Sets task.
5. On the Manage Mapping Sets page, in the Search Results section, click Expense
Accrual Account – Business Unit.
6. On the Edit Mapping Set page, in the Chart of Accounts section, select the US Chart of
Accounts row.
7. In the US Chart of Accounts: Mappings section, click the Add Row icon.
8. In the Input column, Sold-to BU field, enter the name of the business unit you created in
an earlier practice. For example, enter PRCXX Business Unit, where XX is the number
of your student user.
9. In the Output column, US Chart of Accounts field, enter 101.10.24220.000.000.000.
(This will be the Expense Accrual account mapped to your business unit.)
10. Enter the Effective Start Date: 01/01/2000.
11. Click Save and Close.
12. Click Done.

Practice Complete
You have used the Transaction Account Builder to map an expense account to your business
unit.

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