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Principles of Purchasing Management - PowerPoint

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					Purchasing Principles
           North Georgia
    College & State University
 Office of Materials Management
            Purchasing Methods
    P-card
    Used for small dollar purchases, office supplies, items on contract
     and registration fees.
    Paper Check Request
    Used for reimbursements, invoices & non-employee travel $100.00
     or less.
    ePro Requisition
    All other purchases
    Expense Request
    Employee travel & reimbursement
    WEX Fuel Card
    Used for fuel purchase (State Owned vehicles only)
           Types of Purchases
 Sole Brand-Normally used to match existing equipment.
 Sole Source-No other sources are available. (Must be
  posted for five days on the GPR)
 Open Market-Purchase made in the open market.
 Emergency-Used when possible loss of life or property.
  (Notify Materials Mgt.)
 Intergovernmental- Purchase agreement from one state
  agency to another.
 Mandatory Source-Georgia Correctional Institute and
  Georgia Enterprise.
 Contract-Agency or State Wide Contract.
Check Surplus/Excess Property
 This is the first step in the purchasing process.
 Requester should check for Surplus & Excess
  Property availability prior to making any
  purchase request.
 There may be used property or equipment
  available at no cost or minimal cost through
  State Surplus channels.
 Contact Materials Management at x1940 for
  more information.
           Mandatory Sources
 Mandatory    sources must be checked prior
  to seeking out any other vendors.
 If the service or item is available through
  one of these sources, the purchase to the
  mandatory vendor is required.
 Exception can only be granted through the
  Office of Materials Management and
  D.O.A.S. Process Improvement.
             Mandatory Sources
 State    Wide Contracts
  Contracts which have been competitively bid through the
  State Purchasing Division (SPD).
  Contract number, NIGP number, expiration dates and
  payment terms/discounts are required on the Purchase
  Order.
  These contract may be viewed on the Georgia
  Procurement Registry located at
http://ssl.doas.state.ga.us/PRSapp/PR_StateWide_contract_menu.jsp

or the Materials Management Web Site located at
http://www.ngcsu.edu/Bus_Fin/MatMgt/Purchasing/purchasing.htm
              Mandatory Source
 Agency      Contracts
  Contracts that have been competitively bid by NGCSU.
  Contract is for one year with the possibility of four
  renewals.
  Contract number, NIGP Number and expiration date
  must be referenced on the request or p-card summary.

   These contract can be view at

http://www.ngcsu.edu/Bus_Fin/MatMgt/Purchasing/purchasing.htm
            Mandatory Sources
 Georgia      Correction Institution (GCI)
 State agencies are required by statute to purchase certain products
 and services from Georgia Correctional Industries (GCI) and
 Georgia Enterprises where the products being purchased have been
 certified in writing. In the case of GCI, the Commissioner of
 Corrections must certify the products. The State Use Council must
 certify products for Georgia Enterprises. Products and Services not
 certified are not mandatory purchases under the Official Code of
 Georgia.

 Primarily Furniture
         Purchasing Thresholds
   All purchases $5000.00 and over, not available
    through a mandatory source, must be
    competitively bid.

   Public works projects $10,000 and over

   Requisitions requiring competitive bid should be
    submitted well in advance to allow time for
    preparation of solicitation documents and the bid
    process.
         Purchase Request
 Submitted   through the eProcurement
  Module.
 Users require set-up prior to use.
 Requires self service login/password.
 Basic instruction available on the MM
  Website for Creation, manager approvals
  & Delegating approval authority
      Create an ePro Request
 Follow Business Process EP.020.500
 Category Code (NIGP#) applies to the product
  or service. (Reference contract if applicable)
 Select vendor from database. If the vendor is not
  available, identify vendor in the suggested
  vendor location. (Allow more time for
  processing)
 If in contact with vendor, request W-9
  information.
         ePro Request Con’t
 Line description should be clear and concise.
 Attach documentation to the ePro Requisition or
  send in the mail to Materials Mgmt. Documents
  that support the purchase includes:
      Quotes
      Invoices for contracted items
      Food Justification Form
      Sole Source/Sole Brand Forms
      W-9 Form
AdHoc Approval Requirements
   Technology Purchases
     Software-Jim Webb
     Audio/ Visual-Eric Nelken
     Hardware-Steve McLeod

   Physical Plant Items (Installations, electrical,
    construction & etc…)
     Todd Berman


   Publications/Advertisements
    Kate Maine
                Account Information
 Chart of accounts located on the “N” Drive.
 ePro requires all accounting fields.
       (714110 10500 4012000 16300 11000 153)
                    Expenditure Account Number (Supplies & Materials Office)
       (714110 10500 4012000 16300 11000 153)
                         Fund Code
       (714110 10500 4012000 16300 11000 153)
                                  Department ID- Indicates routing for Approval workflow

       (714110 10500 4012000 16300 11000 153)

                                       Program (General Admin/Logistical Svc.)
       (714110 10500 4012000 16300 11000 153)

                                                Class (General Operations-Gen.)
       (714110 10500 4012000 16300 11000 153)

                                                  Project-Indicates routing for approval work flow
                Purchasing Workflow
                  Denied


  Requester        Dept ID            Approver                  AdHoc Approval
 Submits ePro                         Validates                Requester/Approver
   Request         Project Number     Purchase                    Generated
     Start                                                    AdHoc Not Required

                 Work Flow                                    Budget Error
                                     Director of
                  Error                                                             Budget Check
                                    Materials Mgt
                                                                                     System/MM
Service/
Product
Received                             Vendor
                                     Approval
                   Payment
                                                                                    Requisition
                Invoice               Accounts          Receiving                   Screening &
                                                        Report                        Coding
                                      Payable
                                                    Vendor Set-up
                                                    Required
                             PO Distributed                         Materials Mgt
                                W-9 Returned                                            Red = indicates
    Vendor                                                          Buyer
                                Request for W-9                                         Show stoppers
      End
           ePro Approvers
 Approvers   are overall responsible to
  ensure the purchase is valid state
  business.
 Approvers can view all information through
  their work list.
 Ability to approve or deny with comments.
 Can delegate temporary approval
  authority.
              Competitive Bids
   eQuote is the primary tool for solicitations.
   This is an electronic bid system posted the
    Georgia Procurement Registry (GPR)
   Estimated dollar amounts drives the duration of
    posting and number of minority vendors to be
    solicited.
   All bids must come through eQuote. (No paper
    bids)
   Ability to add vendors of choice both registered
    and non-registered.
        Contracts & Agreements
 Allcontracts and agreements should be
  review by Materials Management.
 Only the President or the Vice President of
  Business & Finance can enter into a
  contract or an agreement.
 Contract or agreement require a
  indemnification clause and the ability to
  cancel.
               Questions #1
    What is the first step in the procurement?
a)   Create a ePro Requisition
b)   Check surplus property
c)   Create a Purchase Order
d)   None of the above
               Question #2
    What is the best method/preferred
     method to purchase small dollar items
     such as office supplies?
a)   Purchase Order
b)   WEX Fuel Card
c)   Visa Purchasing Card
d)   All of the above
              Question #3
    Employee Travel & Reimbursements
     should be processed through ….
a)   eProcurement
b)   Check Request
c)   Visa Purchasing Card
d)   Self Service Expense Module
              Question #4
    Sole Source Procurements are only used
     when the vendor is the only source
     available. Prior research should be
     conducted to ensure no other source is
     available. There is a five day posting
     requirement on the GPR prior to the
     procurement.
a)   True
b)   False
               Question #5
    All purchases $______ and above must
     be competitively bid unless the product
     or service is exempt or available from a
     mandatory source?
a)   $1,000.00
b)   $2,000.00
c)   $5,000.00
d)   $8,000.00
               Question #6
    Requester/approvers should always
     check _______ prior to selecting a
     source for their purchase?
a)   State Wide Contract
b)   Agency Contracts
c)   Mandatory Sources
d)   All of the above
               Question #7
    When creating an ePro Requisition and a
     vendor is not available in the database
     the requester should?
a)   Obtain a W-9 Form to assist in
     expediting the request
b)   Allow for more processing time
c)   Add the vendor in the suggested vendor
     link
d)   All of the above
               Question # 8
A requester is creating an ePro Requisition for
    some book shelves that require installation that
    is not provided by the vendor. The requester
    should?
a) Purchase the necessary tools to install yourself
b) Contact Auxiliary Services
c) Add Todd Berman as an AdHoc Approver to
    coordinate and approve the install.
d) Contact Materials Management
               Question #9
    Approvers should verify ______ before
     approving an ePro Requisition?
a)   Purchase is for official university
     business
b)   The account number is appropriate for
     the type of purchase
c)   The purchase follows university
     guidelines
d)   All of the above
              Question #10
    The President or Vice President of
     Business & Finance is the only
     authorized persons to enter into
     agreements or contracts?
A)   True
B)   False

				
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