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External Vendor Procurement Processes

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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

				
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