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External Vendor Procurement Main Processes As-Is Purchasing Order Main Process Bid Main Process Begin Begin Create Encumbrance Prepare Bid Requisition Auditing Create POs Publish Bid System Process of POs & Related Files Evaluate & Award Bid Create CORs End End Last Updated: October 15, 2002 1 External Vendor Procurement Processes As-Is Create Encumbrance This process map depicts the basic approval process of encumbrance. Actual process may vary by departments or divisions. Dept. Dept. Fills Dept. Chair Route Authorizes to Begin Out Req. Approves Requisitions to Create Form Requisitions Dean’s Office Requisitions Dean’s/Dept Office Return to Dean’s/Dept Dean’s Office Enters Req. # and Procurement Office Create Reviews & Main Flow Funding in 3270 Encumbrance Approves Req. (EPRQ) Last Updated: October 15, 2002 2 Pre-Audit Requisition Auditing Receive Verify Class Verify Verify Verify Both Requisitions Code is Begin Description Is Accompanying Dept. & Dean’s from Dean’s Appropriate Complete Documentation Approvals Office for Item Return to Verify Req. Is No Dean’s OK? for UW Office Business Yes Other Approve Return to Route Reqs. Requisitions. Requisitions Procurement To Main Process Purchasing Fund 133 Class Codes Yes Route to Postage Req. 4Ks, 2Ks, 3221, RSP System Generates 3227 & 3228? Verify Voucher, Create VO No RSP VO Entry Remittance Copy, in VPAM Reviews & Prelist in CARDS Confirming Req No Approves w/ Invoice Class Code Attached 4Ks? Yes (<$5,000) Route 4Ks OK? Yes & 2Ks to Property Property Purchasing No Control Control Returns Verifies Issue Other Editing & Req. Req. Correct Distribute Reqs. Under in VPAM Check End RSP Checks Negotiated Printing Reference Original Equipment PO # and Contracts Property Control # if Last Updated: October 15, 2002 Purchase is a Component 3 of Capital Equipment. End External Vendor Procurement Processes As-Is Create Purchase Orders Note: At beginning of each month, the legacy system loads funding EPRQ: Fund, source and expiration Account, UDDS, dates to the Purchasing Activity, Class System. Code. Legacy System Purchasing Enters Nightly Loads Purchasing Remaining Req. Begin Req. File to System Updates Form Data to Purchasing Vendor File Purchasing System System Reqs. Under Purchasing Purchasing $5,000 or from Assigns Req. Creates Req. in Delegated Agent to Purchasing Purchasing Agent System All Other Reqs. Agent Creates Return to Agent or Prog. Agent Defines Wait for Purchasing Procurement PO from Req. Assist. Invoice/PMT Vendor Agent Reviews & Main Process in Purchasing Response Releases PO Handling Sources Vendor System •Bid Order •Quote Status = R •RFP •Waiver •Contract Processes Last Updated: October 15, 2002 4 External Vendor Procurement Processes As-Is System Process of POs and Related Files Cancelled, Closed or Non- Begin Exist Reqs. Purchasing Legacy System Purchasing Purchasing System Loads Populates Legacy Legacy System System Nightly System Loads Updated Vendor Tables Used by Creates Req. Prints POs at PO File to File to Legacy Accrual Accounting Error Report DoIT Legacy (INQP) (ADDI) (INQP) To vendor, Dept. List of Reqs with Accounting, etc. over ±$100 Variance Return to Vendor Legacy System Distribute No Procurement File Load Creates Entry Main Process PO Copies Error? Change Report Yes Legacy System Creates Vendor File Load Error Report Last Updated: October 15, 2002 5 COR is automatically generated by Purchasing External Vendor Procurement Processes As-Is Advantage of a COR is that the System at a time coinciding with the end Create Continuing Order Requisitions (COR) Department and Purchasing do not have to re-enter all the data date for a contract order for a requisition, just the changes. or a specific vendor/open The CORs are issued quarterly vendor blanket order. and at Fiscal Year-End. Purchasing Purchasing System NO Routes Copies Department COR Still Department Begin Generates COR of COR to Reviews COR Needed? Discards CORs (Five times a Departments year) YES Dean’s Office Department Stop Dept. Chair Dept. Routes to Department Approves and Routes to Approves COR Chair Edits COR Enters on EPRQ Deans Office Copy old req. to new req., assign a new req. number and corss-reference between old & new req numbers in the system. Legacy Updates 133 or 144 Funds NO Dean’s Office Purchasing NO Purchasing Agent Oracle Funding OK to With Special Routes to Creates New Req Reviews & and Table in Release? Class codes? Purchasing from Old Req releases Order Purchasing System YES YES Purchase Orders RSP Reviews Distributed Dean’s Office RSP routes to and next day Routes to RSP Purchasing Approves Return to Procurement Main Process Last Updated: October 20, 2002 Last Updated: September 15, 2002 66 External Vendor Procurement Processes As-Is Additional Information • Additional Order Information • Vendor Addresses – Use of Commodity Code on each order line – Remit to address item – Bid address – PO Type assigned to each PO (Types of contracts, blanket POs, pricing method etc.) – Order address: This is loaded to the legacy system. – Purchase Authority by PO (Waiver, Contract, etc.) • Purchasing Agent Information – Print Format Type (Also drives payment – Purchasing Agent information is used as process) source data by INQP. It is entered directly to TREV (Buyer) in the legacy system by – Positive or negative approval of invoice Purchasing every time a new Purchasing – Freight destination code (Could be defined Agent is hired. The Accrual Accounting at order line) System uses this data to link a PO to a – Payment terms buyer. – Stored text messages • Receipt of Goods – Reference PO to contract number (via – No receipt documents Authorization, no direct link) – Evidence of receipt is not required for – Vendor Number. payment processing • Triggers of Change Orders – No RMAs. – Department request • Vendor Names – Invoice amount (Accounting routes invoice – A vendor may use one name on PO and to Purchasing, who reviews with another on invoice; department for approval.) – A vendor name may have alias; – Vendor request due to item change or price – Matching of vendor names is a manual changes. process. Return to Procurement Main Last Updated: October 15, 2002 7 Process page 1 of 3 University of Wisconsin - Madison Macro View Sealed Bid Process External Vendor Procurement Processes As-Is - Prepare Bid Presents need Draft bid, Identifies Creates Program to dept. bus. prop. eval Need purchase req Area End mgr. procedures w/ bus. mgr. User Department Does it Draft bid, Reviews Creates Business Need qualify as a prop. eval bid? Yes purchase req procedures Manager w/ end user End of No Process Purchasing Draft bid, Collect Enters Data purch. Services prop. eval into Oracle req., prop. A procedures Purchasing eval. proc. System info No Accounting Pre Audit Grant Requisition Award? Grant review Yes process State Journal VendorNet Vendor Return to Evaluation Committee Procurement Main Process Legend: Manually created Electronically Manual Manual Input Terminator Stored data Off-page Decision Process document created document operation/ connector process Last Updated: October 15, 2002 8 University of Wisconsin - Madison Macro View Sealed Bid Process page 2 of 3 External Vendor Procurement Processes As-Is - Publish Bid Program Area End User Department Business Manager Purchasing Place bid Identify/send Sends bid to A notice in Services bid to State Journal vendor vendors Accounting State Publishes bid Journal notice Yes VendorNet Reads Vendors Responds Obtains Respond Prepare bid Yes response B receives bid to notice? bid to bid? notice to bid Vendor End of End of No Process No Process Evaluation Return to Committee Procurement Main Process Legend: Manually created Electronically Manual Manual Input Terminator Stored data Off-page Decision Process document created document operation/ connector process Last Updated: October 15, 2002 9 University of Wisconsin - Madison page 3 of 3 Macro View Sealed Bid Process External Vendor Procurement Processes As-Is – Evaluate & Award Bid Program Area End User Department Business Manager Opens Creates Purchase Purchasing Receives Forward responses Makes purchase order to responses response Services from vendors on bid evaluation vendor order vendor End process opening award committee date Accounting State Journal VendorNet Mail response Receives B to purchasing purchase office order Vendor Evaluation Receives Makes award Committee & reviews recommenda- responses tion Return to Procurement Main Legend: Manual Process Process Manually created Electronically Manual Input Terminator Stored data Off-page Decision document created document operation/ connector process Last Updated: October 15, 2002 10
"External Vendor Procurement Processes"