Using Condition Codes in Procurement—Exercises

Basic Data Setup

Defining Condition Codes

Purpose: The purpose of this exercise is to verify, and if necessary, enter condition codes that will be used in the main exercises.

Windows:
Part Basic Data/Condition Code

1. Populate the tab and view the existing values. NORMAL is the code value installed with the system. All other values are user defined. If NEW, USED, REMANU, and UNSERV are not displayed, enter these condition codes.
2. Verify that NEW is set as the default condition code. Save any changes.

General exercise for Condition Codes

Setting up Condition Code Pricing

Purpose: The purpose of this exercise is to set up the part used in the main exercise.

Windows:
Inventory Part
Supplier for Purchase Part
Part/General

1. In the Inventory Part window, create a new record for a condition code handled serial inventory part of type purchased. Use XX99-001 as the part number and Engine as description. Replace XX with your initials.
2. Connect the supplier C.S.C. Rome (XX1020) to the part.
3. Connect the part to one more supplier of your choice.
4. In the Part/General tab, select the appropriate parameters for serial tracking, and to allow condition codes.

General exercise for Setting up Condition Code Pricing

Main Exercises

Purpose: The purpose of these exercises is to demonstrate the use of condition codes within different steps of the purchasing flow.

Using Condition Codes in Purchase Requisitions

Purpose: The purpose of this exercise is to demonstrate the use of condition codes in purchase requisitions.

Windows:
Purchase Requisition

1. Create a new record, entering your site and a requisitioner.
2. Create a new part requisition line.
3. Enter part number XX99-001, condition code, NEW, and a quantity of 10.
4. Create a new line for a quantity of 5 for part number XX99-001 and condition code NORMAL.
5. Release the requisition, and note the requisition number.
6. Change the condition codes in the first line, to USED. Can you save the changed record?

Using Condition Codes in Requests for Quotation

Purpose: The purpose of this exercise is to demonstrate the use of condition codes in requests for quotations. In this exercise, you will convert one requisition line from the above exercise into a request for quotation. Alternatively, you could create a request for quotation directly.

Windows:
Purchase Requisition/Part Requisition Lines
Request for Order Quotation

1. In the Purchase Requisition window, select the line for the XX99-001 condition code NEW part from the above requisition.
2. Right-click, then click Requisition to Request.
3. Click Create New in the dialog window that opens. Note the request number that is displayed.
4. Open the Request for Order Quotation window, and query for the request that you just created.
5. Note the condition code value, which has defaulted from the purchase requisition line. Can you change this value?
6. Click the Suppliers tab, and enter lines for the two suppliers you connected to this part.
7. Save the record, then release it. Note the request number.

Using Condition Codes in Order Quotations

Purpose: The purpose of this exercise is to demonstrate the use of condition codes in further processing of requests for quotations. For this exercise, you will assume that you have received an order quotation from both suppliers specified in the exercise above.

Windows:
Request for Order Quotation
Order Quotation

1. In the Request for Order Quotation/Supplier tab, select the first line, right-click, then click Quotations to open the Order Quotation window.
2. In the Date Received field, enter today's date.
3. In the Part Quotation Lines tab, note the condition code. Can you change this value?
4. Enter a price of $170, then save the record. Close the
5. Repeat steps 1–4 for the second supplier, but enter a price of $150 on the Part Quotation Lines tab.

Using Condition Codes in Order Quotation Approval

Purpose: The purpose of this exercise is to demonstrate the use of condition codes in accepting one of the quotations. For this exercise, you will accept one of the supplier's quotes for the desired part, and reject the other.

Windows:
Order Quotation Approval
Purchase Order

1. Query for the request number.
2. In the table area, note that both supplier's quotation lines are displayed. Can you change the condition code values?
3. Select the higher priced quotation, right-click, then click Reject.
4. In the message that appears, select whether or not to have the rejection letter printed.
5. Select the lower priced quotation, right-click, then click Accept.
6. Click Yes when the message appears, asking whether to create a purchase order.
7. Click Create New in the dialog window that appears. Note the purchase order number.
8. Click No in the dialog window that appears, asking if you want to print rejection letters.
9. Open the Purchase Order window, query for the order, and release it.

Using Condition Codes in Purchase Orders

Purpose: The purpose of this exercise is to convert an existing purchase requisition line into a purchase order. Optionally, you can also continue processing the purchase order created with the order quotation flow, or enter a new purchase order. You will need at least one purchase order for the lot/batch tracked part, and one purchase order for the serial tracked part to complete later exercises.

Windows:
Purchase Requisition
Purchase Order

1. In the Purchase Requisition window, query for the requisition you created in the first exercise.
2. Select the requisition line for the XX99-001part condition code NORMAL, right-click, then click Requisition to Order. Complete the steps in the dialog windows that appear, and note the order number.
3. Note the condition code value. Is it the same as the value on the purchase requisition line?
4. Change the condition code to REMANU. Are you able to save the change?
5. Release the purchase order.

Alternatively, you could create a purchase order directly in the Purchase Order window. Specify a condition code on one line and allow the system to supply the default condition code for another line.

Using Condition Codes in Purchase Arrival

Purpose: The purpose of this exercise is to demonstrate the use of condition codes in purchase order arrivals.

Windows:
Register Purchase Order Arrivals

1. Query for the purchase order you created in the exercise above for the XX99-001 (NORMAL) part.
2. Note the condition code. Can you change the code value and save the record?
3. Right-click, then click Receive with Serials.
4. In the dialog window that opens, you are required to enter serial numbers for the parts. Also change the quantity to inspect to at least 2, for use in exercises that follow.
5. Query for the purchase order you created for the XX99-001 part in the order quotation flow.
6. Note the condition code. Can you change the value and save the record?
7. Right-click, then click Receive Order.
8. In the Receive dialog window that opens, you can specify a quantity to inspect, the receive case, the location, and serial number. Can you change the condition code?
9. Click OK to accept the changes.

Using Condition Codes in Purchase Order Receipt

Purpose: The purpose of this exercise is to demonstrate the use of condition codes in purchase order receipt and inspection.

Windows:
Purchase Order Receipt

1. Query for the purchase order you created in the exercise above for the XX99-001 (NORMAL) part.
2. Click the Single tab to view the list of serials. You can either select individual lines in this tab, and right-click to scrap or return the selected serial. Alternatively, you can right-click in the header and select Register Inspection Results.
3. Scrap one part, and return another. Can you change the condition code?
4. Repeat steps 1–3 for the purchase order created for the XX99-001 part, if desired.