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Purchases Business Process document sample
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1a2c3e25-30b4-4d9a-a909-119b1854d3a1.doc BP – Purchasing - REQ
Business Process: Purchasing
Process Stage: Requisition
The requisition process involves the request for goods or services either from externals sources (vendors) or perhaps
from agency inventory. Once the requisition is entered into the system, it must pass a number of approval steps before it
is ready to be sourced to a Purchase Order or a Request for Quotes.
Business Process Steps
The following diagram illustrates the flow of information and transactions involved in the Requisition process
Requisition
Figure 1 The general flow of the Requisition process Expediter to
Create PO
Enter
Budget Save & Internal External Sourcing
Requisition
Check Approvals Approvals
- or -
Information Submit Validation
or -
Create
RFQ
Authorized Role:
Procurement Requisition
Requisition Entry Various Approvers Agent Manager
Approver -or-
RFQ Entry
PeopleSoft Security Role
Process Steps
(What security role enables
(And what is involved in this step of the process?)
this access?)
Enter Requisition Information
1. Create a new requisition by selecting items from a catalog, or entering detail in a special
request.
Budget Check
Requisition
2. Check for availability of funds for this request. For “Full-Financials” agencies who have
budgets in the system, this budget check pre-encumbers the funds on their PeopleSoft Entry
books.
Save and Submit
3.
Store the requisition on the system and initiate the approval processes.
4. Internal Approvals
a. Agency Procurement Agent
Procurement Agent Approver
Confirms and approves the procurement method
b. Agency Fiscal Approver
Fiscal Approver
Confirms and approves the accounting information (fund-object-center-etc.)
c. Agency MIS / IT Approver
Agency IT Approver
Reviews and approves requisitions that are in information technology categories
d. Agency Management Approver
Configured in Workflow but not
Approval of requisitions on behalf of the agency, usually based on the requisition dollar a specifically assigned Role.
amount. Requisitions above the limit defined by the agency require this approval.
5. External Approvals (see discussion below)
Sourcing Validation
6. Procurement Agent Approver
Select the procurement method. Create either a purchase order or an RFQ as required.
Requisition Expediter –or- Create RFQ
7. Requisition Manager -or-
Depending on the particular purchase, quotes may not be required. If that is the case, a
RFQ Entry
vendor can be selected at this step and a purchase order created.
Note: Generally all users will have access to view all requisition information in a display-
Requisition Display
only mode
Last Change:8/1/2011 1:53 PM Page 1 of 2
1a2c3e25-30b4-4d9a-a909-119b1854d3a1.doc BP – Purchasing - REQ
Security Considerations
The split of roles for the various tasks enables a separation of duties in the purchasing processes. User security can be
configured to require multiple users to be involved in the processing of any purchase. In addition to the processes and
roles described above, there are a number of External Approvals (detailed below) which are activated depending on
certain circumstances.
External Approvals:
Commodity or Category specific:
PEN Approver – reviews and may approve requisitions for items that can be provided by PEN Products but are not being
selected from the PEN Products catalog.
IN-ARF Approver - reviews and may approve requisitions for items that can be provided by IN-ARF but are not being
selected from the IN-ARF catalog.
ICPR Approver – reviews and may approve requisitions for forms and other documents that are under the normal review
of the Indiana Commission on Public Records (ICPR).
ITOC Approver – reviews and may approve requisitions that are in specific technology categories and above a dollar
amount of $25,000 .
Fiscal (dollar value) related:
Budget Approver – reviews and may approve requisitions over $75,000 .
Proc Div Approver – reviews and may approve requisitions over the agency‟s delegated dollar amount (usually $25,000
but may be $75,000 for some agencies).
The following diagram provides another view of how the approval process is applied:
DOIT
- data and word
processing purchase
requests
- ad-hoc‟d by ITOC
ITOC Requisition
- ITOC-identified
commodity codes and
Expediter
greater than $25,000 - purchase order creation
Agency Fiscal
- mandatory for all
purchase requests
Sourcing
Agency Validation
Requisition Agency
Procurement If External Approvals -
Management any Special Request
Items Agent - dollar amount-based - Agency Procurement
Not Required
- mandatory for all - unique to each Agency Agent or DOA
purchase requests Procurement
Agency IT
- ITOC-identified
commodity codes
PEN/INARF regardless of $ amount
-PEN/INARF-identified
commodity codes Budget Agency
- FYI email sent to PEN/ - purchase request
RFQ
- solicitations
INARF greater than $75,000
ICPR
- „State Forms‟ commodity
codes
Last Change:8/1/2011 1:53 PM Page 2 of 2
