Intercompany Vendor / Customer creation

Intercompany Vendor and Customer can be created by creating a relationship between the two intercompany records.

Whenever the intercompany vendor and customer is created, the 'Active' checkbox should be checked in the 'Miscellaneous details' tab of the Vendor / Customer record. However, this is a non-editable field and hence cannot be checked manually by the user.

To check that 'Active' checkbox and form an intercompany relationship, a user should navigate to 'General' tab of the customer / vendor record and click the 'Intercompany' button in the ribbon. This will open up an intercompany form, where an intercompany relationship can be formed.

User will have to check the 'Active' checkbox and then will have to select the company and the appropriate intercompany customer / vendor record from the drop down, of the selected company.

Note : One very much important thing to note here is the 'Remove relationship' button at the top. Suppose you no longer need the relationship between the intercompany customer /vendor and so you decide to uncheck the 'Active' checkbox. However this will just make the relationship inactive, but the relationship will still be there. This will mean that, even if the relationship is inactive, you will not be able to link that record with other intercompany customer / vendor. Hence if you are sure that the relationship is no longer needed, always ,make sure that first, you uncheck the 'Active' checkbox and then click the 'Remove relationship' button to completely delete the relationship.

Thanks

Sarang

Two IMP parameters from Procurement and Sourcing

There are two parameters worth noting from the Procurement and Sourcing module (under Parameters > Update) . They are:

1. Safety level of invoiced orders
2. Check for product receipt number used

• "Safety level of invoiced orders" drop down has three values. They are as follows:
• None - User can change the value on the fully invoiced PO
• Warning - User will receive a warning, if the user tries to change the value on the fully invoiced PO
• Locked - User will not be able to change the value on the fully invoiced PO
• "Check for product receipt number used" drop down has four values. They are as follows:
• Reject duplicate - Duplicate receipt number not allowed
• Reject duplicates within accounting year - Duplicate receipt number not allowed, within same year, but will be allowed if the numbers are from different accounting year.
• Accept duplicates - Duplicate receipt numbers allowed
• Warn in case of duplicates - User will be warned, in case of duplicate receipt number detected.

Though these parameters seem trivial, but for reference purpose noting it down here.

Thanks

Sarang

Procurement Categories and related setup

1. Procurement categories are setup at Product Management > Setup > Categories > Category Hierarchy.
2. Initially, only category structure is created (as mentioned in step 1) and then the type is assigned to the structure at Product Management > Setup > Categories > Category hierarchy types. This is really weird, as anyone would normally think that the category hierarchy type would be mentioned somewhere in the category hierarchy record, as a drop down. But no, there are fixed system-defined categories, which are mentioned in the path above.
3. The user has to associate the category hierarchy to the category hierarchy type. There are fixed category hierarchy types. They are:
• Procurement category hierarchy
• Sales category hierarchy
• Retail product hierarchy
• Commodity code hierarchy
• Derived financial hierarchy
• Supplemental retail hierarchy
• Retail channel navigation hierarchy
• Management reporter
4. Only one type of category hierarchy is allowed for one category hierarchy type.
5. We are interested in Procurement category hierarchy here in this article. The moment, the category hierarchy is linked to the category hierarchy type, additional fields related to the category hierarchy type, will be displayed on the category hierarchy records. User needs to fill them.
6. Ledger posting setup for procurement categories:
• If the procurement categories are used in project module, for project PO, then the procurement categories needs to be linked with the project categories. Project Category Ledger posting setup will then link this to the appropriate ledger code / account.
• If the procurement categories are used in a stand-alone PO, then the procurement category postings to the appropriate code is to be setup at Stock and warehouse management > Setup > Posting > Posting. In the 'Item code' drop down, apart from the standard 'Table', 'Group', 'All', there is one more option to select 'Category'. This category drop down will then show all the categories created in step 1.
7. Point 6 is all about the postings in the P&L .i.e. Cost postings. The balance sheet posting for a PO will always be Trade / Account payable.
8. This was all about the setup of the procurement category and its posting setup from a standalone PO and Project PO perspective. There is one more point to be discussed and that is invoice matching.
9. Invoice matching setup for procurement categories:
• Invoice matching setup applicable for 'Items' is setup at: Purchase Ledger > Setup > Purchase Ledger parameters > Invoice validation > Price and quantity matching.
• Invoice matching setup applicable for 'Procurement categories' is setup at: Procurement and sourcing > Setup > Policies > Purchasing policies > Policy rule > Category policy rule > Category matching policy.
10. Procurement categories can be accessed from following navigation : Procurement and sourcing > Setup > Categories > Procurement categories.  From this navigation user will not be able to create the new categories in the category hierarchy structure, but will be able to edit certain fields. However there is a button called ' Edit category hierarchy' which when clicked will open open up the category hierarchy structure form (which is same as navigation from step 1).
11. There is one more setup which is different for items and for procurement categories, i.e. over and under delivery.
12. Over / Under deliver settings for:
• Items is at Procurement and sourcing > Setup > Procurement and sourcing parameters > Updates. (Checkbox)
• Procurement categories is at Procurement and sourcing > Setup > Categories > Procurement categories > Under / over delivery (percentage field to be filled in manually)

This was all about main settings related to procurement categories and items and their relationship with the general ledger. Will update this post more, if i find anything worth noting down.

Thanks

Sarang

Set the Cost Price as the Sales Price by default...!

This thing has always troubled me. Whenever i needed to find the related configuration i would always look at the wrong place in the system. The parameter is actually related to supplier invoice and hence i would always search it in Purchase Ledger parameters, Procurement and sourcing parameters, Stock and Warehousing parameters etc. And finally being frustrated would find that under the Project management and accounting parameters.

The parameter i am talking about is, "Set the cost price as sales price by default". This parameter:

• if checked, will make the Sales price field (under the project tab in the pending supplier invoice) non-editable IF THE PROCUREMENT CATEGORY IS SELECTED in the pending supplier invoice line.This parameter does not hold true, if the pending supplier invoice line is for an item and not procurement category.

• if unchecked, will NOT make the Sales price field (under the project tab in the pending supplier invoice) non-editable IF THE PROCUREMENT CATEGORY IS SELECTED in the pending supplier invoice line.This parameter does not hold true, if the pending supplier invoice line is for an item and not procurement category.

Thanks

Sarang