Set Purchasing Options

Select Purchasing Options in System Options Maintenance (XM) to set purchasing options for your enterprise.

Click Mfg branch to set options for your manufacturing branch or click Branch settings to set options for your login branch.

Note
Manufacturing branch options override enterprise options.

Set these options:

Field Name

Type / Max Length

Action / Description

Receiving method

Required
1 alphanumeric

Select S for stock immediate (direct-to-stock receiving) or select D for dock-to-stock receiving of purchased items.

If you select S, you run the Receiver Maintenance (IRC) program to receive items directly into inventory. You run the Receiving and Inspection (IRI) program only if inspection is required.

If you select D, you run Receiver Maintenance (IRC) to receive into your branch and Receiving and Inspection (IRI) to receive into your stockroom.

Caution
You can change your receiving method from S to D in this program. However, if you want to change from D to S, you must use the Receiving Method Conversion (XUI) program.

Note
Click Mfg branch to set this option for your manufacturing branch or click Branch settings to set this option for your login branch.

Material review board active?

Optional

Select if you want to use the material review board or leave blank if you do not.

If you select this option, you can assign or have the system assign tag numbers to items that you reject during inspection. Then you run the Rejected Material Disposition (MRB) program and select a disposition.

If you do not select this option, you will not have access to material review board programs.

Note
Click Mfg branch to set this option for your manufacturing branch or click Branch settings to set this option for your login branch.

Print company name on PO?

Optional

Select to print your company name and address on purchase orders or leave blank to not print this information.

If you select, the name and address of the branch entered in the Branch Maintenance (TBM) program prints if:

You print or reprint a PO with the PO Print (VOP) program.

AND

You did not enter the name of a graphic file in the Header image name field for the Purchase order document in the Document Output Parameters Maintenance (TDOC) program.

This option has no affect when you click Print PO in the PO Maintenance (VOE) program or output document copies from the PO Print Queue (VOPPM) program.

Note
Click Mfg branch to set this option for your manufacturing branch or click Branch settings to set this option for your login branch.

Disable purchase order firewall?

Optional

Select what you want to happen when the order entry operator uses manual obligation in the Sales Order Maintenance (OE) program or clicks Obligate and then Purchase because the available quantity of an item is insufficient to fill the customer's order.

The firewall is between the program that creates requisitions and the program that releases orders.

Select	To create a
Y	Purchase order for the quantity ordered. This option can produce many purchase orders for small quantities.
N	Purchasing requisition, which you then release with the Requisition Maintenance (IRM) program to create a purchase order. This option allows you to review the quantity you want to order.
V	Purchase order if you have: Selected a preferred vendor for the item and branch in the Branch Item Maintenance (IMB) program Selected the QA approved? and Preferred item? fields in the item's record in the Vendor Price Maintenance (VMM) program Entered a price for the quantity ordered Purchasing requisition if these conditions are not met.
V	If you select V, the Requisition Maintenance (IRM) program may display the message Vendor/Item price record not available in Vendor Price Maintenance; could not release requisition [number] when you try to release. You must have a record for this item and vendor in the Vendor Price Maintenance (VMM) program, select QA approved? and Preferred item?, and enter at least one price.

Note
Click Mfg branch to set this option for your manufacturing branch or click Branch settings to set this option for your login branch.

Requisition release grace period

Optional
4 numeric

If you selected Y or V for the Disable purchase order firewall? option, enter a number of shop calendar days to use as a grace period for creating a purchase order.

When sales order entry indicates that you need to purchase an item, the system checks the item's lead time and this grace period. If both are less than the order line's Expected ship date, the system releases a purchase order. If either exceeds the Expected ship date, the system creates a requisition.

For example, if your grace period is 15 days, the item's lead time is 32, and the order line's Expected ship date is more than 60 days in the future, the system creates a purchase requisition. However, if the order line's Expected ship date is less than 30 days in the future, the system creates a purchase order.

Note
Click Mfg branch to set this option for your manufacturing branch or click Branch settings to set this option for your login branch.

Supply chain active?

Optional

Select if you want to use the supply chain programs or leave blank if you do not.

If you select this option, the Material Requirements Planning (MRP) program creates requisitions for vendors with contracts based on the number of periods entered in the Fab periods firm field in the Vendor Contract Maintenance (VCM) program.

Note
Click Mfg branch to set this option for your manufacturing branch.

Default no of months for supply chain

Optional
2 numeric

If you selected Supply chain active?, enter the number of months duration of a typical vendor contract.

The default date for the Expiration date field in the Vendor Contract Maintenance (VCM) program is the login date plus this number of months.

Purchase order approvals required?

Optional

Select if you require one or more users to approve all or selected POs prior to printing or leave blank if you do not.

If you select, you must set up a hierarchy and approval cycle with the Approval Hierarchy Maintenance (APPHM) and Approvals Maintenance (APPM) programs. See Overview: Approval Processing.

Note
Click Mfg branch to set this option for your manufacturing branch or click Branch settings to set this option for your login branch.

Default cost for POs/requisitions

Optional
1 alphanumeric

Select the cost you want the Requisition Maintenance (IRM) program to display in the Suggested cost field for a purchasing requisition.

If you do not have vendor pricing set up for an item and vendor in the Vendor Price Maintenance (VMM) program, the Purchase Order Maintenance (VOE) program displays the selected cost in the Unit cost field, converting the value from the base currency to the vendor's currency.

Select	To use the item's
S	Standard unit cost (i.e., Total unit cost displayed in Item Cost Maintenance/Inquiry - ICM/ICQ)
A	Actual cost; however, if actual cost is 0 because you have not previously received the item, standard cost is used
M	Standard material cost
N	No default (i.e., zero)

Note
Standard unit cost may include overhead and outside services. Standard material cost does not.

Click Mfg branch to set this option for your manufacturing branch or click Branch settings to set this option for your login branch.

PO receipt tolerance code

Optional

Enter the code that defines the default level at which you allow over-receipts of purchase orders. See Background: Receipt Tolerance Codes Maintenance.

Auto confirmation of vendor shipments

Optional

Select if you want shipments to vendors confirmed when POs for outside services and vendor returns are created or leave blank if you want confirmation/shipment to be a separate step. The second step allows you to tell the system when the items are physically being shipped to the vendor; up to that point, you can make changes to the purchase order, if necessary.

If you select this option (i.e., confirmation when POs are created), shipment documents are output (if set up in Document Output Parameters Maintenance), and the PO status is updated to shipped. Because the shipment is confirmed, the PO cannot be maintained.

If you leave this option blank, the PO can be maintained until it is confirmed with Vendor Shipment Confirmation (VSC). Once processed through VSC (or RFVSC if using RF devices), shipment documents are output (if set up in Document Output Parameters Maintenance), and the PO status is updated to shipped.

If a shipment is confirmed in error or you need to make changes to a PO after a shipment is confirmed, delete the shipment with Vendor Shipment Maintenance (VSCM). Once the shipment is deleted, you can maintain the PO, which creates a new shipment.

Single receiver per line?

Optional

Select to create a separate receiver for each PO line received or leave blank to allow multiple PO lines to be received on one receiver.

Create separate replacement PO?

Optional

Select to create a purchase order (in addition to a vendor shipment) when you return rejected material to a vendor for replacement.

Note
This option does not apply to labor purchases.

Allow PO line close during receipt?

Optional

Select if you want receiving to prompt to close a purchase order line when less than the ordered quantity is received.

Purchasing default receiving warehouse

Optional

If your company receives purchased goods to a temporary location (like a dock area or an inspection area) and then moves the goods to a final stocking location later, select the warehouse that is the default location for purchase order receipts.

Note
Click Mfg branch to set this option for your manufacturing branch or click Branch settings to set this option for your login branch.

Purchasing default receiving bin

Optional

If your company receives purchased goods to a temporary location (like a dock or inspection area) and then moves the goods to a final stocking location later, enter the bin that is the default location for purchase order receipts.

Note
Click Mfg branch to set this option for your manufacturing branch or click Branch settings to set this option for your login branch.

Choose the appropriate options:

To	Do This
Change an option	Click on the field and make required changes.
Exit without changing these options	Click Cancel.
Print these options	Click Print. See Print an Inquiry.
Enter overrides for your manufacturing branch	Click Mfg branch.
Accept these options and exit	Click OK.

Choose the appropriate options when you click OK or Cancel:

To	Do This
Display a category of options	Highlight the line and click Select or double-click the line.
Exit the program	Click Exit.