Investing in Our Future
January 2017
Purchasing Remediation Project Central Purchasing & Enterprise Resource Planning
Training Objectives
After completing this session, you should be able to:
Identify PeopleSoft 9.2 eProcurement functionality related to the
Requisitioner role.
Understand basic features of the Requisition, Workflow, Category
Codes, Items and Catalogs.
Recognize processing differences between Goods and Services.
Recognize a Contract vs. Purchase Order Release (POR).
Access ongoing support resources available to end users after Go
Live (i.e. workshops, job aids, etc.).
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Agenda
SECTION TOPIC
Beginning the Climb Introduction and Project Overview
“What does this mean to me?”
Getting a Better View Requisitioning
Workflow: Confirmation & Approval Routing
Reaching for the Top Category Codes
Items
Catalogs
Special Request
Dispatching & Sourcing
Final Ascent New Processes & Special Topics
We made it! Training and Support
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Be sure to sign the Attendance Roster. You will receive your Requisitioner Guidebook (via e-mail) after completing this training session.
Browser Awareness
Occasionally, end users experience viewing or
functionality issues caused by a Browser. This issue has
increased as more Browsers have been introduced.
1. If you are experiencing functionality difficulties within PeopleSoft
eProcurement you may need to change your Browser.
2. City of Albuquerque Browser Standard: Internet Explorer
3. Other suggested Browsers: Mozilla Firefox or Google Chrome
4. Not sure if it is a functionality issue or user error?
Switch to a different browser and try again.
If you experience the same issue contact the Service Desk for
additional help. 768-2930
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BEGINNING THE CLIMB
The climb is tough, but the view from the top is worth it!
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Introduction – Why?
An assessment completed in 2014 by an independent contractor,
CherryRoad, identified major pain points:
Purchasing processing challenges following the 2009 implementation
Excessive processing times
Data integrity issues
eProcurement Implementation Goals/Objectives:
Standardization of processes Decrease processing times Maximize use of workflows
Eliminate Shadow Systems/spreadsheets
Increase data integrity (encumbrances-better estimates)
Increase visibility of the Purchase Order Life-cycle
Enable Purchasing resources to focus on data analysis & quality control
Optimize business processes by involving all stakeholders
Define acceptable tolerances for PO/POR/Voucher reconciliation
Minimize customizations & non-PeopleSoft interfaces
Make PeopleSoft the system of record for all Purchasing data
Identify necessary interfaces
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Purchasing Remediation Project – Overview
Changes & New Functionality for Purchasing
Remediation:
Electronic Requisitions - ePro, an enhanced requisitioning
module will be used as an entry point for procurements.
Catalogs – Ordering from Inventory and Contracts will be
enhanced through online catalogs.
Approval – Online approvals (using Workflow) are implemented for
procurement transactions.
Receiving – Business Process will be changed for promptly
receiving goods in PeopleSoft.
AP Invoice Processing – Streamlined requirements; invoices will
no longer go to departments. Suppliers must provide PO Numbers
on invoices.
New Interfaces between PeopleSoft and External Systems (i.e.
Transcepta)
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WHAT DOES THIS MEAN TO ME?
It is totally natural to be a little nervous and uncertain
about these major changes.
Remember to be excited, too! It will all be worth it!
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GETTING A BETTER VIEW
“Whether you think you can or think you can’t -
you’re right.” -Henry Ford
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Requisition – Start of the Purchasing Process
The Purchasing Process begins with the Requisition
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Types of Requisition
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CREATE REQUISITION PAGE
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The Create Requisitions page
mimics an online shopping
experience for routine
purchases.
Selections create a requisition
that will route for approval
when submitted.
Navigation: Main Menu > eProcurement > Requisition
CATALOG OPTIONS
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Navigation: Main Menu > eProcurement > Requisition
Use Catalog to order stock items from
the Warehouse (COA_ALL_PURCH1)
or Labatt’s.
Use Web to order from Sandia Office
Supply.
Use Special Requests to order non-
stock items.
CREATE REQUISITION PAGE
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Important Information is located in the Header: 1. Business Unit – Should reflect your Business Unit code. Helps identify department approvers for workflow.
2. Requester – Impacts workflow – Should be a User familiar with the transaction.
3. Origin – This field manages Signature Authority options which are included in approval workflow.
4. Requisition Type – Choose an appropriate Requisition Type. Defaults to ‘DO NOT USE’. You must actively
select the appropriate Requisition Type. You need to have the correct Requisition Type or Purchasing will need
to deny the request.
Requester Name
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REQUISITION FEATURES
Purchase will include “Item” and “Category Codes” which should be verified.
Why is this important? Item and Category Codes track Spend details.
• Detailed Spend information was not available in the past.
• This new transparency to Spend is valuable in planning budgets. The City
can identify high Spend areas where a request for discounts (to help save
money in the future) might be appropriate.
Note: More detail on this will be reviewed in the next section.
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REQUISITION FEATURES
Must include Accounting Line Information on Chartfields1 and
Chartfields2 tabs when submitting a Requisition. Have this information available before starting your Requisition.
Chartfields3 Tab – Only used for
Projects / Grants
Chartfields1 Tab – Must have Location, Quantity, Percent &
GL Unit
Chartfields2 Tab – Must have correct
combination of Account, Fund &
Dept
Not Required for regular purchases:
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REQUISITION FEATURES
Ability to add Line Comments per Item and/or Attachments to each
Requisition. The system gives the following options for you to choose
where you would like your comments to be included and seen: 1. Send to Supplier
2. Show at Receipt
3. Show at Voucher
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REQUISITION FEATURES
At the bottom of the Requisition: Add special requisition instructions in the Requisition Comments
Add Approval Justification comments
Note: The ‘Check Budget’ process has been automated so you will not use this icon.
If the Requisition is complete and ready to route for approvals: Save & submit If the Requisition will be completed later: Save for Later To continue adding more items: Add More Items Note: To Preview Approvals you must ‘Save for Later’ or ‘Save & submit’.
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CONFIRMATION & APPROVAL ROUTING (WORKFLOW)
How will I know if I have a Requisition pending my Approval?
When a requisition is submitted it enters Approval Workflow. If you are
included in the Workflow you will receive an e-mail in your Outlook Inbox
and the Requisition will also be added to your Worklist in PeopleSoft.
Click on the e-mail hyperlink then login to PeopleSoft to access the
Approval function.
Note: Requesters are included in the Approval Workflow. If you are both the
Requisitioner and Requester you will receive a notification. This gives you another
chance to verify that your Requisition submission is accurate. If you have another
role (i.e. Fiscal Manager) you will receive another e-mail notification to
review/approve in that capacity.
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CONFIRMATION & APPROVAL ROUTING (WORKFLOW)
When submitted, Requisitions route electronically for Approvals through
‘Workflow’. Who they route to is controlled by dollar amounts, etc. Requisitioner’s can view the status of Workflow at any time.
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CONFIRMATION & APPROVAL ROUTING (WORKFLOW)
To view the Requisition as a document for your review process:
1. Choose all lines by clicking in the Select All/Deselect All box. 2. Click on View Line Details button. 3. The Requisition is displayed for you to review before you Approve, Deny or Push Back.
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CONFIRMATION & APPROVAL ROUTING (WORKFLOW)
After reviewing the Requisition you can: Pushback
Deny
Approve
Add Ad-Hoc Approvers
Example of Pushback: Only goes back one level. The option appears after the
first approval is completed.
Example of Approved: Example of Denied:
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CONFIRMATION & APPROVAL ROUTING (WORKFLOW)
Do you need someone to review this Requisition that is not in the Workflow?
Use the Ad-Hoc Routing feature:
Use + Sign to insert an Ad-Hoc Approver before you complete your Approval. Note: If you Approve first the + Sign will disappear and cannot use Ad-Hoc feature.
Note: Adding Additional Approvers to Workflow may increase the processing time.
REACHING FOR THE TOP: CATEGORY CODES, ITEMS & CATALOGS
Believe you can and you’re halfway there. - Theodore Roosevelt
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WHAT ARE CATEGORY CODES?
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Category Codes are entered on Procurement Contracts, CROs and POs. They are also attached to Inventory Items.
Category Codes are used for reporting on and controlling the types of goods and services that the City buys.
The City currently uses a small set of very broad, basic codes.
Implementing a new Category Code set provides:
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Easy reporting on Spend by Category -
This helps us negotiate better pricing with suppliers.
Better control on Spend -
Information will be readily available to managers
within PeopleSoft.
Codes will be attached to contracts as well -
Users will only be able to buy within the categories
assigned to a contract.
WHY ARE CATEGORY CODES CHANGING?
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Category Codes for Services will start with a 9. Service Category Codes will be flagged for ‘No Receiving’ (see
the Purchasing Flowchart in your handouts).
Category Codes for Goods will start with anything from
0 to 8. Goods must be received in order to be processed for payment
(see the Purchasing Flowchart in your handouts).
CATEGORY CODES: GOODS VS. SERVICES
The National Institute of Government Purchasing (NIGP)
created a set of Codes to be used as a government
standard.
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Provides much more detail
Increases available codes to 9,000+
5 digit number for example 005-05: First 3 digits represent the general type of product. Example:
005 = Abrasives
Last two digits (-05) provide detail.
Example: ***-05 = ‘Abrasive Equipment and Tools’
EASY to search by Description, no need to memorize codes
Advantages to using these NIGP established codes:
NATIONAL INSTITUTE OF GOVERNMENT PURCHASING
CURRENT STATE OF ITEMS
Currently all items are associated with the Warehouse.
1. Physical goods: Either stocked in Inventory or set-up as a
‘Just-in-Time’ item for ‘as needed’ delivery.
2. Issued, delivered, replenished and managed by Warehouse
staff and supervisory personnel.
3. Each warehouse item is configured with details for
replenishment, physical storage area, Min and Max
quantities, etc.
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FUTURE STATE OF ITEMS
In ePro Items will include new non-inventory items, in
addition to, existing warehouse items.
1. Physical goods AND services will be set-up as Items.
Any good or service that is purchased frequently is a candidate to be set up as an
item and included in an ePro catalog.
2. Items are more granular than Category Codes. Many items can be
attached to one Category Code.
Example: Category Code might be “Drafting and Drawing Pencils, Pens, Leads,
Lead Holders, etc.” The Item might be: “BALLPOINT PEN, FINEPOINT, RED”
3. Non-stock, non-inventory items will be managed by Central
Purchasing.
4. Non-stock items will not be configured with details for replenishment,
physical storage, Min and Max quantities, etc.
5. Non-stock items WILL be assigned to an NIGP Category Code with
units of measure and order quantities.
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Importance of Items and Category Codes in Catalogs
Spend analysis and control is driven by Category Codes and Items
CATALOGS
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When to use a Special Request -
To purchase a Good or Service that is not available
in a Catalog.
To request Contract Amendment or a new Contract.
To request Contract set-up.
To request Item Maintenance or New Items.
To initiate a Bid in SicommNet.
See Requisition Type Matrix in your handouts.
SPECIAL REQUEST
Note: Almost all Requisition Types are created from a Special Request. Only the Internal Catalog and Punch-out Catalog are tied to a Catalog.
DISPATCHING & SOURCING
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Purchase Orders or PORs will be “Auto-Sourced” from Approved
Requisitions with a Supplier.
Purchase Orders from ePro will be pre-approved.
Purchase Orders from ePro will be Dispatched in batches: Departments will not be dispatching individual PORs.
PeopleSoft supports e-mailing Purchase Orders if we have “Order
From” e-mail addresses in the PeopleSoft Vendor/Supplier file.
Suppliers signed up with Transcepta will be configured to dispatch via
EDX (Electronic Data Exchange).
We have a process to ensure that all Dispatched PO files are
actually transmitted to the Supplier.
We have a process to create and transmit duplicate PO’s.
FINAL ASCENT:
NEW PROCESSES
“It ain’t what you don’t know that gets you into trouble.
It’s what you know for sure that just ain’t so.”
- Will Rogers
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PURCHASING BUSINESS PROCESS RE-ENGINEERING
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The Purchasing Remediation Project is implementing extensive
changes in purchasing processes City-wide. The changes will
impact Central Purchasing, Department Buyers, Fiscal Managers,
Accounts Payable and Operations users and Managers.
Fiscal managers and staff have been included in Remediation
Project meetings since its inception and are well informed of the
coming changes.
Non-fiscal managers and staff also need to know the new
processes; the project needs their understanding and support.
NEW – REQUISITION & CRO/POR PROCESSES
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Users must know the funding string, pricing and specifications as part of
completing the requisition. Back up documentation needs to be attached.
The purchase approval is always completed on the electronic requisition.
The use of the term CRO (Contract Release Order) is being
discontinued as it is not generally used outside of the internal City process.
The terms POR (Purchase Order Release) or PO (Purchase Order) will be
used instead.
A Purchase Order Release (formerly CRO) is created through a PeopleSoft
process directly from the approved requisition.
The Purchase Order Release is dispatched from PeopleSoft to the supplier
via email, hard copy or electronically BEFORE the supplier fulfills the order.
A PO is a binding document specifying the goods or services that are being
ordered with the terms and conditions for their delivery and payment. A
valid PO must ONLY be generated from PeopleSoft and will be
electronically signed by the Chief Procurement Officer. Department
substitute forms are NOT VALID and must not be used.
NEW – CHANGE ORDERS & CONTRACT AMENDMENTS
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PO Adjustment Form – No longer used.
Contract Amendment – Use the Contract Amendment Requisition
Type.
Change a Purchase Order – Use the Change Order Functionality
on the Add/Update PO page.
What is a Change Order? A formal notification to the Supplier that
we are changing a Quantity, Amount or Item from a previously placed
order.
A Change Order is not appropriate for A/P Processing or cosmetic
internal changes.
Important Note: PO Change Orders will have Workflow similar to Requisitions.
NEW – SUPPLIERS & RECEIVING PROCESSES
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Supplier
The Supplier must have a valid purchase order document in-hand prior to
fulfilling any order. They need the PO in order to invoice the City correctly so
they can be paid promptly.
City personnel may not simply call in an order to a supplier, providing only a
PO number. They must not ask a supplier to fulfill an order without a
valid PO in-hand. To do so is a major purchasing violation.
Receiving
Goods must be received in PeopleSoft from a packing slip, not from an
invoice. Where possible, the receiving process should be performed by
operations staff.
Services will not be received in PeopleSoft at all.
Receiving will be ‘Blind’ meaning users will not see the amount ordered.
They should record only what was actually physically received.
NEW PROCESS – ACCOUNTS PAYABLE (A/P)
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Invoices will not be sent directly to departments. Goods will be received
from a packing slip, not an invoice. The accounting and approvals have
already taken place on the requisition.
The funds to pay the invoice were encumbered and committed when the
requisition was approved and the PO was created.
For Goods: Only invoices needing further information will be sent to
departments. All other invoices will be processed without further review at
the department level. If the goods have been delivered intact, additional
review is not needed.
For Services: Invoices for services will also be sent directly to A/P. An
image of the invoice will be attached to the voucher and the voucher will be
routed to the department to verify that the services were performed.
Employee reimbursements for tools, boots or other out-of-pocket
expenses will no longer require a requisition. They will be entered as an
Expense Report into the Travel and Expense module with receipts attached.
Once approved, the employee will be paid electronically into his/her primary
payroll account.
CONTRACTS VS. PURCHASE ORDER RELEASE
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Contracts vs. Purchase Order Release
Procurement Contract defines Goods and Services that
the City has the right to buy at a certain price under certain
terms and conditions.
Purchase Order or Purchase Order Release (POR)
formerly documents that the City is exercising its rights
under the contract.
Purchase Order or POR is the only mechanism to process
an invoice and create a payment.
SPECIAL TOPIC: PURCHASE ORDER RELEASE CYCLE
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Step 1: To create or amend an existing Contract:
Prepare a Requisition of the appropriate type (i.e. PT or
PT Type, GSA or Social Services Contracts).
Requisition is approved.
Contract is developed and executed.
Procurement Contract is created in PeopleSoft.
Step 2: To order Goods/Services from the Contract:
Create a Purchase Order Release Requisition.
CHANGES TO PROCUREMENT CONTRACT
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Changes to be aware of on Procurement Contracts:
Procurement Contracts will also use Category Codes and
Items.
They will no longer allow Open Item Reference – more
restrictive.
In order to attach an ePro Requisition to a Contract users
must select an Item or a Category Code that is on the
Contract.
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WE MADE IT! TRAINING & SUPPORT
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PREPARATION FOR GO LIVE
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Additional Resources for Ongoing Support:
1. Training Guide for Requisitioner’s:
eProcurement - Creating Requisitions
2. Web Courses (called UPK’s)
3. System Process Document (SPD) – Detailed Job
Aids with steps and some screenshots
4. Job Aid – Brief Job Aids (steps only)
5. Central Purchasing website
6. Frequently Asked Questions-eProcurement Library
7. Link to eProcurement Library & Weekly Blasts on
eWeb Home Page:
8. Open Workshops for hands-on assistance
Spread the word of these upcoming changes with
management and those involved in the Purchasing
process in your department.
Ensure message is accurate and consistent.
Have questions or concerns? Contact the ePro Project
Team if you have questions or need assistance. Peter Taichert, ERP Business Analyst II, 768-3279 or
Misty Billy, Purchasing Program Specialist, 768-3543 or
Central Purchasing, 768-3320
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COMMUNICATION AND SUPPORT
Thank you for attending:
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