Tracking Procurement Costs

This chapter provides overviews of procurement costs, integration with Purchasing, requisition and purchase order adjustments, integration with Inventory, Payables, and Order Management, and discusses how to:

• Create requisitions in Project Costing.

• Integrate requisitions and purchase orders with Project Costing.

• Adjust requisitions and purchase orders in Project Costing.

• Integrate with Inventory.

• Integrate with Payables.

• Integrate with Order Management.

Understanding Procurement Costs

In Project Costing you can track procurement costs as they move through the system from requisitions to purchase orders to vouchers. The following steps and diagram illustrate this movement:

1. Requisition transactions that you enter in Project Costing can be picked up by PeopleSoft Enterprise Purchasing and turned into requisitions.

   Requisitions can also be entered into Purchasing by other means and pulled into Project Costing for tracking.

2. When a requisition is created, Purchasing can determine if the requested item exists in PeopleSoft Enterprise Inventory.

   If the item is an inventory item, a demand can be created, posted, and picked up by Inventory for fulfillment. If the requested item is not an inventory item, a purchase order can be created.

3. When the purchase order is approved and dispatched, it can be brought into Project Costing as a committed cost.

   The purchase order can also be sent to the appropriate vendor.

4. When a voucher is received from the vendor, it can be matched, approved, and posted in PeopleSoft Enterprise Payables.

   The voucher information can then be brought into Project Costing as an actual cost.

5. Orders entered in PeopleSoft Enterprise Order Management can also be pulled into Project Costing and tracked.

Example of a procurement process

Understanding Integration with Purchasing

Project Costing integrates requisitions, purchase orders, or both. Project Costing also provides a process to adjust purchase requisitions or purchase orders.

This section discusses:

• Integrating requisitions from Project Costing to Purchasing.

• Integrating requisitions from Purchasing to Project Costing.

• Integrating purchase orders from Purchasing to Project Costing.

Integrating Requisitions from Project Costing to Purchasing

These actions occur to create requisition transactions in Project Costing:

• The Purchasing Requisition Loader process uses the Project Transaction table (PROJ_RESOURCE) to determine which transactions have an analysis type of REQ and a PO distribution status of 1.

  It copies those transactions into Purchasing, creates requisitions, and adds a requisition ID to each requisition transaction on the Project Transaction table.

  Note. The Purchasing Requisition Loader process can group multiple transactions into a single requisition by item ID, project ID, activity ID, source type, and so on.

• The PO Distribution Status of the requisition transactions on the Project Transaction table changes to 4 (processed) to indicate that they have been processed by Purchasing.

See Also

Using the Requisition Loader

Integrating Requisitions from Purchasing to Project Costing

These actions occur to integrate requisitions originating in Purchasing into Project Costing:

1. After you create requisitions in Purchasing they are posted to the Requisition Distribution table (REQ_LN_DISTRIB).

   If a requisition originated in Project Costing, it is replaced when the requisition is approved in Purchasing.

2. The Purchasing to Project Costing Application Engine process (PC_PO_TO_PC) uses the Requisition Distribution table to determine which requisitions have a value of N (not distributed) for the PC Distribution Status field (PC_DISTRIB_STATUS).

   This indicates that the requisition did not originate in Project Costing, and has not been picked up by Project Costing.

3. The Purchasing to Project Costing process pulls these requisition lines into Project Costing. Requisitions appear as transactions with the analysis type that is specified in the Requisitions field (AN_TYPE_PO_REQ) on the Installation Options - Project Costing Integration page.

   The Requisitions field default value is REQ.

   If you use Maintenance Management, the process also imports the work order business unit, work order ID, task ID, work order resource type, and work order resource line into the Project Transaction table.

4. The PC Distribution Status field value on the Requisition Distribution table changes to D (distributed) for each transaction that is copied into Project Costing.

See Also

Understanding Integrated Products and Shared Products Setup Considerations

Integrating Purchase Orders from Purchasing to Project Costing

You can integrate purchase orders that originate in Purchasing into Project Costing. The Purchasing to Project Costing process identifies the distribution lines in the PO Line Accounting Entries table (PO_LINE_DISTRIB) that are eligible for integration to Project Costing. Rows in the PO Line Accounting Entries table are eligible for integration if they:

• Contain values for the required project-related ChartFields.

• Have a PC Distribution Status status of N (not distributed).

The Purchasing to Project Costing process updates the PC Distribution Status to D (distributed) and copies the transactions to Project Costing. If you use Maintenance Management, the process also imports the work order business unit, work order ID, task ID, work order resource type, and work order resource line into the Project Transaction table.

Purchase orders appear as transactions with the analysis type that is specified in the Purchase Orders field (AN_TYPE_PO_PO) on the Installation Options - Project Costing Integration page. The Purchase Orders field default value is COM.

See Also

Understanding Integrated Products and Shared Products Setup Considerations

Understanding Requisition and Purchase Order Adjustments

In Project Costing you can adjust requisitions or purchase orders based on the purchasing adjustment options that are set up during installation, combined with the options and parameters that you select when you run the Purchasing Adjustment Application Engine process (PC_POADJUST).

This section discusses:

• Purchasing adjustments.

• Adjustment calculations.

• Nonrecoverable value-added tax (VAT) amounts in purchase order reversals.

• Using commitment control to generate reversals.

Purchasing Adjustments

The Purchasing Adjustment process in Project Costing can perform three types of actions:

• Reverse requisitions.

• Reverse purchase orders (commitments).

• Adjust closed purchase orders.

The Purchasing Adjustment process uses two analysis groups that are delivered as system data:

• POADJ (purchasing adjustments): Identifies the mapping used by the Application Engine process for requisition and purchase order reversals.

• OPENC (open commitment balance): Determines open commitment balances for closed purchase order adjustments.

Review these analysis groups for changes if any additional analysis types are configured.

Adjustment Calculations

This section contains tables that illustrate different adjustment calculations resulting from combined options that are specified during installation on the Installation Options - Project Costing page and during the adjustment process.

Requisition Reversals

These tables show adjustment calculations produced by three different requisition reversal options. In each case, a summarized reversal row is created by grouping the requisition, item, and unit of measure. The analysis type that is used in this process is specified in the Requisition Reversals field (AN_TYPE_PO_RRV) on the Installation Options - Project Costing Integration page. The Requisition Reversals field default value is RRV.

This table lists requisition and purchase order details:

This table lists an adjustment produced by using the REQ Rate option:

Note. If the REQ and COM rows have different units of measure, the total REQ quantity and amount is used for the reversal.

This table lists an adjustment produced by using the COM Amount option:

Note. If the COM amount exceeds the REQ amount, the total REQ amount is used. If the REQ and COM rows have different units of measure, the total COM quantity and amount is used for the reversal.

This table lists an adjustment produced by using the REQ Total option:

Note. The same options apply to requisitions that are reversed by inventory costs that fulfill the requisition.

Purchase Order (Commitment) Reversals

These tables show adjustment calculations produced by two different purchase order reversal options. In each case, a reversal row is created individually for each purchase order line to retain all the detail. The analysis type that is used in this process is specified in the Purchasing Reversals field (AN_TYPE_PO_CRV) on the Installation Options - Project Costing Integration page. The Purchasing Reversals field default value is CRV.

This table lists purchase order and voucher details:

This table lists an adjustment produced by using the COM Rate option:

Note. If the COM and ACT rows have different units of measure, the total COM quantity and amount is used for the reversal.

This table lists an adjustment produced by using the ACT Amount option:

Note. If the ACT amount exceeds the COM amount, the total COM amount is used. If the COM and ACT rows have different units of measure, the total ACT quantity and amount is used for the reversal.

Closed Purchase Order Adjustments

These tables show the reversal that is created when a purchase order is closed or canceled. Once a purchase order is manually canceled or closed in Purchasing, the system creates a reversal row with an analysis type of CCA so that the outstanding commitment can be reduced. The analysis type that is used in this process is specified in the Purchasing Closure field (AN_TYPE_PO_CCA) on the Installation Options - Project Costing Integration page. The Purchasing Closure field default value is CCA.

This table lists requisition and purchase order details:

This table lists an adjustment produced by using the PO Close Adjustment option:

Nonrecoverable VAT Amounts in Purchase Order Reversals

The Purchasing Adjustment process includes nonrecoverable VAT amounts in the calculation of purchase order reversals. Nonrecoverable VAT amounts appear as transaction rows with an analysis type of VIN (nonrecoverable VAT) on the Project Transaction table. The Payables to Project Costing Application Engine process (PC_AP_TO_PC) adds VIN rows to the Project Transaction table for vouchers that contain nonrecoverable VAT.

The Purchasing Adjustment process includes nonrecoverable VAT amounts in the calculation of PO reversal amounts. This applies only if the ACT Amount installation option is selected in the Purchase Order Reversal field (CRV_OPTN) on the Installation Options - Project Costing page. Additionally, the VIN analysis type is added to the POADJ analysis group system data.

Using Commitment Control to Generate Reversals

If you use budget checking, prior to creating RRV and CRV rows the Purchasing Adjustment process evaluates Commitment Control tables to determine if a requisition reversal or commitment reversal already exists. If a reversal row already exists for the requisition or commitment, the Purchasing Adjustment process creates the reversal based on information in Commitment Control. If a reversal does not already exist for the requisition or commitment, the Purchasing Adjustment process creates RRV and CRV rows based on information in the Project Transaction table.

See Also

Understanding PeopleSoft Commitment Control

Defining Project Costing Installation Options

Understanding Integration with Inventory

You can integrate fulfilled demand from Inventory to Project Costing. Fulfilled demand is placed through Inventory Costing on the Inventory Accounting Distribution table (CM_ACCTG_LINE) where it can be picked up by Project Costing and brought in as a transaction. Rows in the Inventory Accounting Distribution table are eligible for integration if they:

• Contain values for the required project-related ChartFields.

• Have a PC Distribution Status status of N (not distributed).

The Inventory to Project Costing Application Engine process (PC_IN_TO_PC) updates the PC Distribution Status to D (distributed) and copies the transactions to the Project Transaction table. If you use Maintenance Management, the process also imports the work order business unit, work order ID, task ID, work order resource type, and work order resource line into the Project Transaction table.

Fulfilled demand is brought into Project Costing as transactions with the analysis type that is specified in the Inventory field (PC_AN_TYPE_IN) on the Installation Options - Project Costing Integration page. The Inventory field delivered default value is ACT.

See Also

Understanding Order Fulfillment Processing

Understanding Integrated Products and Shared Products Setup Considerations

Understanding Integration with Payables

You can integrate approved vouchers from Payables to Project Costing. These actions occur to integrate vouchers between Project Costing and Payables:

1. A purchase order is created in Purchasing and sent to Payables.

2. Vouchers entered into Payables for bills received go through a matching process.

3. Vouchers that have been matched are approved and posted to the AP (accounts payable) Accounting Entries table (VCHR_ACCTG_LINE).

4. The Payables to Project Costing process copies voucher rows where the PC Distribution Status field is set to N (not distributed) from the AP Accounting Entries table to the Project Transaction table.

   Vouchers appear as transactions with the analysis type that is specified in the Payables field (PC_AN_TYPE_AP) on the Installation Options - Project Costing Integration page. The Payables field delivered default value is ACT.

   If you use Maintenance Management, the process also imports the work order business unit, work order ID, task ID, work order resource type, and work order resource line into the Project Transaction table.

See Also

Running the Matching Process

Understanding Integrated Products and Shared Products Setup Considerations

Understanding Integration with Order Management

You can use the Order Management to Project Costing Application Engine process (PC_OM_TO_PC) to integrate orders that originate in Order Management to Project Costing. These actions occur to integrate orders between Order Management and Project Costing:

1. The Order Management to Project Costing process uses the Order Schedule Line table (ORD_SCHEDULE) to determine which transactions have a PC Distribution Status field value of N (not distributed).

2. The Order Management to Project Costing process pulls these rows into Project Costing.

   Orders appear as transactions with the analysis type that is specified in the Order Management field (PC_AN_TYPE_OM) on the Installation Options - Project Costing Integration page. The Order Management field delivered default value is ORD.

Note. If you set up the appropriate exchange rates, transaction amounts that are not in your business unit currency are converted during the integration process.

See Also

Processing Multiple Currencies

Enterprise PeopleTools 8.46 PeopleBook: PeopleSoft Process Scheduler

Creating Requisitions in Project Costing

This section discusses how to create requisition transactions.

Page Used to Create Requisitions in Project Costing

Creating Requisition Transactions

Access the Add Transactions page.

Requisition rows that you enter on this page are processed by the Purchasing Requisition Loader Application Engine process (PO_REQLOAD) as requisitions. Enter the fields that are required for requisition transactions for materials required by a project.

Enter transaction lines with the default analysis type of REQ (requisition). This is required for the Purchasing Requisition Loader process to retrieve the transaction and convert it to a requisition.

When the analysis type is REQ, the system populates these fields:

• The Quantity field default value is 1.

• The PO Distribution Status field (PO_DISTRIB_STATUS) value is 1 (active), which indicates that Purchasing has not processed the requisition.

• When you enter the item ID, the Unit of Measure field is populated with the standard unit of measure for the item ID and is not editable.

Integrating Requisitions and Purchase Orders with Project Costing

This section discusses how to process requisitions or purchase orders from Purchasing into Project Costing.

Page Used to Integrate Requisitions and Purchase Orders with Project Costing

Processing Requisitions or Purchase Orders into Project Costing

Access the Purchasing page.

Use this page to run the Purchasing to Project Costing process to integrate requisitions or purchase orders from Purchasing to Project Costing.

Adjusting Requisitions and Purchase Orders in Project Costing

This section discusses how to process purchasing adjustments.

Page Used to Adjust Requisitions and Purchase Orders in Project Costing

Processing Purchasing Adjustments

Access the Purchasing Adjustments page.

Option	Select an option to process transactions for all projects and activities, or for specific ones. If you select Business Unit, Business Unit/Project, or Business Unit/Project/Activity, and the From Feed option is not selected on the Installation Options - Project Costing page for the type of transactions that you want to process, the system loads only the rows from the Project Transaction table that are associated with the run control options into a temporary table to process. However, the system does not use a temporary table to process the selected rows if the From Feed option is selected. The From Feed option enables the Purchasing Adjustment process to begin automatically when you run the Purchasing to Project Costing process, Inventory to Project Costing process, or Payables to Project Costing process. When these processes automatically trigger the Purchasing Adjustment process, it evaluates all purchasing-related rows. Important! If you restrict the Purchasing Adjustment process to run on a subset of business units, projects, or activities, you will have an outstanding commitment for rows that were not selected in the run control. For example, if a voucher contains Project A and Project B, and you run the Purchasing Adjustment process only on Project A, an outstanding commitment will remain in the Project Transaction table for Project B until you rerun the Purchasing Adjustment process with run control options that include Project B.
Application Options	Select an option to indicate which transactions to create in Project Costing. Values are: Purchase Order Adjustments: Creates a transaction with an analysis type that is specified in the Purchasing Closure field on the Installation Options - Project Costing Integration page. The Purchasing Closure field delivered default value is CCA. Purchase Order Reversals: Creates a transaction with an analysis type that is specified in the Purchasing Reversals field on the Installation Options - Project Costing Integration page. The Purchasing Reversals field delivered default value is CRV. Requisition Reversals: Creates a reversal transaction with an analysis type that is specified in the Requisition Reversals field (AN_TYPE_PO_RRV) on the Installation Options - Project Costing Integration page. The Requisition Reversals field default value is RRV.
Run	Click to initiate the Purchasing Adjustment process.

On the Installation Options - Project Costing page, you can specify the Purchasing Adjustment process to run automatically when purchase orders or vouchers are integrated into Project Costing. Select the From Feed option to initiate the Purchasing Adjustment process automatically when running the Purchasing to Project Costing process, the Inventory to Project Costing process, or the Payables to Project Costing process.

Integrating with Inventory

This section lists the page used to retrieve fulfilled demand from Inventory.

Page Used to Integrate with Inventory

Integrating with Payables

This section discusses how to process Payables vouchers.

Page Used to Integrate with Payables

Processing Payables Vouchers

Access the Payables page.

Integrating with Order Management

This section lists the page used to retrieve customer orders from Order Management.

Page Used to Integrate with Order Management