Purchasing Fundamentals

1. Purchasing Fundamentals Finance Systems Training Rohin Whitford Finance Business Solutions – User Support & Training

2. Slide Directory • Slide # Topic • 63-72 • 73-124 • 100-107 • 117-119 • 129-134 • 139-143 • 147-168 • 169-170 • 171-172 • 173-174 Slide # Topic 3Agenda 4NS Financials Overview 5-6Procure to Pay Process 7Matching Process 8-11Assets Overview 12-14Supplier Inquiry & Vendor Requests 15Dispatch Method 16,139-43 Receipting 17-49eProcurement Requisitions 50-56Requisition Lifecycle NSF Portal Purchase Orders Category Codes GST & VAT Codes PO Dispatch Receipting Purchasing Assets Match Exceptions Purchasing Reports Support & Guidance

3. Agenda • P2P Session 1 – P2P Basics & eProcurement • NSF Overview • P2P Overview • Procure to Pay Process • Matching Process • Purchasing Assets • Vendors • Dispatching • Receipting • eProcurement Requisitions • Create a requisition • COS – tick, tock • COS – Personalised Baskets • VAT Transaction Types • Splitting distribution lines • Submit a Requisition • Update, inquire on a requisition • P2P Session 2 – Purchase Orders • Recap Session 1 • Portal • Vendors • Defaults • Receipting • Purchase Requests • Purchase Orders • Header / Lines • Category Codes • Create a single line Purchase Order • Copy a Purchase Order • Create a multi line/ BULK Purchase Order • PO Approvals • Purchase Orders needing approval • Purchasing Assets • Match Exceptions • Reports

4. NS Financials Overview Expenses Asset Management Credit Card eProcurement Accounts Payable Purchasing Billing Accounts Receivable General Ledger

5. Procure to Pay Process Purchase Request is used to place requests. Once your Purchase Request has been submitted, Buyer will work on the Requisition eProcurement is used to place orders from suppliers on-line. Once your eProcurement requisition has been approved an hourly process runs which will pick it up and create a Purchase Order . Purchase Orders are generated in two ways : 1 - by raising an eProcurement Requisition; or 2 - by manual entry directly into Purchasing All purchases not requested via Credit Card, Expenses, PR1 or petty cash require a related purchase order Purchasing Purchase Request Invoices without a Purchase Order cannot be processed Match Exceptions withhold payment The Matching process runs every night Accounts Payable associate the Vendor Tax Invoice to your Purchase Order Deliveries should be Receipted Daily Credit Card Transaction File from Bank Petty Cash Claim PR1 Credit Card Expenses Reconcile Statement eProcurement Requisition Purchasing Purchase Order Purchasing Receipt Accounts Payable Voucher Accounts Payable Payment Matching Process Vendor Tax Invoice Compares the Voucher to the PO to the Receipt Pay run every Day Orders for eProcurement Vendors Bulk Orders and non-eProcurement Vendors Asset Management Requisition is converted to a PO

6. Procure to Pay Process eProcurement Purchasing Accounts Payable Create a Requisition Budget Check & Submit for approval Create a Purchase Order Budget Check & Submit for approval Approve Purchase Order Workflow on status change Approve Requisition Workflow on status change Dispatch the PO If Dispatch Method = Email no action required (automatically emailed within 2 hours of approval) If Dispatch Method = Print, click the dispatch button, then print the PO via the Process Monitor & fax it to the supplier Purchase Orders Created from Requisitions have a Dispatch method of eProc and no action is necessary. Voucher Tax Invoice entered by AP Matching Process Receipt Delivered Goods Create A Receipt Transaction for ALL purchases Payment

7. What is the Matching Process? 3 way matching - is an automated nightly process that compares the Vendor’s Tax Invoice (Voucher) to both the Purchase Order and to the Receipt to check that it “Matches”, i.e. same price and expected quantity. If there are any discrepancies, NS Financials generates a “Match Exception” which needs to be manually followed up and resolved. A payment will not be processed until the match exception is resolved. Voucher (Vendor Tax Invoice) Price & Qty Goods Received Qty Purchase Order Price & Qty

8. Purchasing Assets Assets should be purchased using a Purchase Order. Purchase Orders for assets can be created via eProcurement or Purchasing. should not be ASSETS Bought Unless they are bought using a Purchase Order, there is no way of entering the Asset Management information eg owner, tag no, serial no, asset location, dept etc.

9. Asset Category When an Asset purchase is raised the buyer must select an Asset Category code. • This defaults the appropriate Assets Expense Account & VAT treatment

10. Asset Information This also defaults the Profile ID and AM Unit fields on the Asset Information tab, located in the item distribution. If the buyer fails to do this when creating the PO, they will need to: • Complete a change order to allow for receipting including Asset information, OR; • Request a manual update by the Asset Management team within Corporate Finance. • The Asset Management team may direct you to of the Asset Detail

11. Asset Receipting When an Asset purchase is raised the buyer must select an Asset Category code. Failing to do so will result in no Pending link showing under AM Status. Some of the Assets Information fields will also be greyed out and unable to be filled or edited – i.e. Profile ID

12. Supplier Inquiry

13. Supplier Inquiry

14. Vendor Requests Complete the online forms to amend or request a Vendor in the AP systems. Vendor enquiries may be directed to aphep@unsw.edu.au

15. Dispatch Methods There are 3 Dispatch Methods available: Email The PO is automatically emailed to the Vendor within 2 hours from 8:30am – 6:30pm Monday-Friday (once it has passed Budget Checking and has been Approved). Print Once the PO has passed Budget Checking and has been Approved, there are 3 more manual steps required: • 1. Manually dispatch the PO • 2. Print the PO via the Process Monitor • Fax the hard copy print out to the Vendor eProc If the Vendor has this method displayed, they are an eProcurement Vendor. You need to cancel out of the Purchase Order and create a Requisition via the eProcurement / Create Requisition menu. Otherwise your order will not be dispatched anywhere – it will just sit there. The Dispatch Method is setup on the Vendor record and will default onto the Purchase Order.

16. Receipting eProc Receipting Required Purchasing • Access – Portal menu, eProc menu or Purchasing menu • Applies to both Good & Services • Assets – Complete additional details by selecting the ‘pending’ link

17. eProcurementRequisitions

18. When to Use eProcurement When you create a Purchase Order and the Dispatch Method is “eProc” you must use eProcurement.

19. eProcurement Menu eProcurement Menu

20. eProcurement Menu Create a new eProcurement requisition

21. eProcurement Menu View, edit and manage existing requisitions

22. eProcurement Menu If requisitions are being routed to you for approval you will find them here (or in your Worklist)

23. eProcurement Menu Create / ManageReceipts

24. eProcurement Menu eProcurement Reporting & Inquiry menu

25. Create eProc Order Create a new eProcurement requisition

26. Creating Requisitions When you create a requisition you are asked to provide a Business Unit and a Requester before continuing. Enter Requisition Name now otherwise it will pick Requisition number

27. Creating Requisitions       The Catalog is not currently is use – it may be resurrected again in the future. Do not use as information is outdated.

28. Creating Requisitions       We do not use this functionality.

29. Creating Requisitions       We do not use this functionality.

30. Creating Requisitions       Order from a suppliers web site (i.e., Complete Office Supplies)

31. Creating Requisitions       Order from suppliers who either don’t have on-line ordering or the technology of their ordering system is different to ours. Also can be used for the Web suppliers if special prices are negotiated.

32. Adding Items • At this point we select Web, choose a supplier and we are routed to the Suppliers web site. • We add items to our cart and when we are finished we complete the order. • When we order is completed on the suppliers web site we are routed back to NSF where we are to enter chartfield information etc. • “Roundtrip”

33. note Example Create an eProcurement Requisition You are from Purchasing Operations (SUMAN) and you want to order some items from Complete Office Supplies (COS). • Create an eProcurement Requisition. • Select COS as the vendor you wish to order from. • Select the following items from their website: • Coffee for your office • Printer paper for your copier/printer • Complete your order and Return to NSF. Before returning to NSF you must be aware of any items on your order that are GST free.

34. Create Requisition

35. Select eProc Vendor

36. Complete Office Supplies

37. Product Search

38. Adding Order

39. Product Discription

40. Your Cart Orders with Total Price less than $50.00 - Service Fee Applies

41. Returning to NS Financials

42. Reviewing your order

43. Chartfield Distribution

44. Chartfield Distribution

45. Chartfield Distribution

46. Approving Requisitions There are two kind of approvals: • Self Approval If the Requisition value is less than or equal to $500 and within the Requester’s Financial Delegation then the Requisition will approve itself once the budget check status is valid and you press the Save & submit button. • 2nd Approver Required If the Requisition value is greater than $500 then a second Approver must be nominated (regardless of your delegation) to approve the Requisition. You specify who this person is in the Approver field.

47. Budget Checking • When you are ready to finalise your requisition press the Check Budget button. • The budget check in eProcurement is immediate. • You cannot continue unless your requisition’s budget check has a status of valid. • If your budget check returns an error you must resolve the issue before you can continue.

48. Approving Requisitions The Approval process provides the following features: • Defaulting of an Approver onto the Requisition from User Preferences. • Selection of an Approver from a drop-down list which displays Approver's Financial Delegation. • An email to the Approver advising that Approval is required. • An email to the Buyer advising that Approval is complete or Denial has occurred. • Buyers can change the Approver provided the Requisition is in Pending Status. • If an Approver is going on leave, the Approver can route all their Approvals to another Approver. This is done on the ‘Update Profile’ page.

49. eProc Exercise • Chartfield Distributions • You should have two lines on your requisition: • Coffee • Printer paper • Drill down to each line and enter the chartfield distribution information: • Account - search for an appropriate code • Fund - OP001 • Department - ANALYTA • Program - 0000 • Class - 00 • Project - PS19352 • Change the GST code to FRAO (GST Free) on any GST free items you have purchased. • Save the requisition.

50. Manage Requisitions