statewide financial system program 1 purchasing training – po220 purchasing welcome to purchasing...

Statewide Financial System Program1

PurchasingTraining – PO220

PurchasingTraining – PO220

Welcome to Purchasing Training


Learning Objectives Upon completion of this course, learners will have the knowledge to:

• Understand roles and workflow within the SFS;• Understand the Buyer/Manager relationship;• Create a Purchase Order;• Associate a Contract with a Purchase Order;• Document the Master Contract on a Purchase Order in the SFS;• Edit/Cancel a Purchase Order;• Understand matching;• Approve a purchase order;• Understand the dispatch process;• Locate available reports; and,• Locate additional training materials, job aids, and other useful

process-related information.


Purchasing Roles


Purchasing Roles PO Contract Processor– Enters contract/amendment information

in the SFS. There is no agency-level automated workflow in the SFS for managing contracts. When a contract processor saves the contract in “Pending OSC Approval” status, the contract will enter OSC’s Bureau of Contracts (BOC) contract approval process.

PO Processor – Creates purchase orders (POs): i.e., standalone, POs associated to a contract, POs for master contracts, and revenue/customer contracts.

PO Proxy - PO Processors who also have the new PO proxy role can update and cancel POs for all other buyers in the business units to which they have access. In addition, they can update or cancel POs for any past buyer (buyers listed on any POs that are not closed or canceled, even if they are no longer working within a BU). If the Buyer that is being updated has left the agency, the Proxy must update the PO Buyer to a valid Buyer before saving the PO.


Purchasing Roles PO Approver (Workflow) – Review, approve or deny purchase

orders. There are five levels of PO approval available for use by an agency. The approval levels can be assigned based on individual agency needs.

PO Batch Processor – Run scheduled and ad-hoc purchasing processes in the SFS. The PO Batch Processor role is for administrative users within the purchasing function to run various scheduled purchasing processes in the SFS, as well as on an ad-hoc basis when the agency cannot wait for the regularly-scheduled process (such as the budget check).

PO Inquiry – Look up purchasing information.

PO Reporting – Access and print purchasing information.


Purchasing Workflow


Purchasing Workflow Overview

PO Processor Supervisor

Only PO Processors create and submit purchase orders.

The PO Processor is sometimes referred to as the Buyer and the Supervisor is sometimes referred to as the Buyer Manager. This is further described in the Buyer Manager Relationship section of this presentation.

POs are routed to the PO Processor’s Supervisor for approval.


PO Approval Workflow Overview

Pooled RolesSupervisor

When POs are routed to pooled roles, they will appear on the worklist of every user in an agency with that role.

Once one of the users in a pooled role takes an approval action on a PO, it is removed from the worklist of others in the same role.

After the highest level of approval is completed, the PO is forwarded to OSC for review if required.



Examples of Pooled Roles

(1) PO Department Approver

(2) PO Manager Officer

(3) PO Budget Officer

(4) PO Finance Officer

All approvers have the ability to approve, reject, or deny the PO.

A PO that is denied or rejected at any point in the approval workflow is returned to the worklist of the originator of the PO (PO Processor). Remember to provide comments for the originator as to the reason for the denial or rejection.



Finance Officer

When the approval status reads “Pending OSC,” the PO is routed to OSC for approval. OSC may approve or reject a PO.

A rejected PO may not be submitted again and a new PO must be created. If there have not been payments against a rejected PO, it must be canceled so that the encumbrance may be released.

A rejected PO change order, for which payments were made against it, requires the Buyer to reduce the PO to the amount of the payment in order to release the remaining encumbrance.

NYS Office of the State Comptroller (OSC)


Buyer Manager Relationship - Workflow


Buyer Manager Relationship A Buyer Manager in the SFS is essentially a Purchasing (PO)

Supervisor. PO transactions that are entered into the SFS and submitted by Buyers (PO Processors) will first be routed in workflow to the Buyer's Buyer Manager.

It is important to note that when a user's Buyer Manager changes, the agency’s Employee Data Administrator (EDA) will need to remove that Buyer from the former Buyer Manager and then add that user to the new Buyer Manager.

It is recommended that only one Buyer Manager be assigned per Buyer. If a Buyer is mapped to multiple Buyer Managers, it may cause the Buyer's transactions to be routed to the incorrect Buyer Manager for approval.

When a Buyer is assigned to multiple Buyer Managers, the transaction is automatically routed for approval in the SFS to the Buyer Manager whose User ID appears first alphabetically.


SFS PO Integration Points



The flowchart below represents a high-level view of how the SFS Purchasing (PO) module integrates with other SFS modules.


The basic steps of the Purchasing process are depicted below. The purchase order lifecycle is highlighted.



SFS PO Terms and Concepts


The table below lists key concepts of the Statewide Financial System related to contracts, for which a PO is created in the SFS to associate the PO to a contract.


Term/Concept Definition

Procurement Contract

Document used to establish an agreement with a vendor for the purchase of goods and/or services.

Audit Type Replaces the batch type as the value that determines if a transaction must be routed to OSC for approval.

Amendment Used to modify the terms, conditions, and/or contract amounts related to a formal contract between a vendor and the state entity.

Amendment Sequence Number

A unique number that identifies each transaction with a contract and is required when creating a PO to encumber funds against a contract.


The table below lists key concepts of the Statewide Financial System relative to purchase orders.


Term/Concept Definition

Purchase Order Document that details the exact items or services to be rendered from a vendor. POs can be standalone or associated to a contract.

PO Change Order

Created when changes are made on a dispatched purchase order to the header, lines, or schedule. A change order sequence is created every time a PO change order is created. Change orders must enter workflow.

Buyer User with security privileges to create POs and PO change orders. Also referred to as a PO Processor.

PO Dispatch A batch process used to generate a PDF document that contains purchase order information to be sent to the vendor.


Creating a Purchase Order



Steps to take prior to entering a purchase order in the SFS:

Determine type of PO to be entered:

• Standalone• Amount-only• Quantity-based• PO associated to a contract• PO from a master contract• Revenue contract


Creating a Purchase Order - Navigation From SFS Financials, navigate to:

Purchasing > Purchase Orders > Add/Update PO > Select the Add a New Value tab

The Business Unit (BU) defaults. Agencies with more than one BU may need to change the BU.


Creating a Purchase Order From the PO Form tab (as shown on the previous page), enter the

PO date, Vendor, and Buyer.

The PO ID is auto generated when the PO is completed and saved.

Once the PO contains the above mentioned required fields, click the Header Details link.


Creating a Purchase Order Header Details Page Once on the PO Header Details page, enter the PO Type and

Department.

The Department field must also be completed for standalone POs (those not associated to a contract) that require OSC approval.

Click OK when completed to return to the main page.


Creating a Purchase Order Use of PO Defaults Page From the PO Form tab on the Maintain Purchase Order page,

click the PO Defaults link.

• The PO Defaults page is not required.• If multiple lines on the purchase order have the same line

distribution, due date, or ship to location, the information can be entered once using this page to save time.

• The information entered will apply to all the PO lines.


Creating a Purchase Order Use of PO Defaults Page


Creating a Purchase Order With a fully-defined PO, items (both goods/services) may be added.

From the Lines Details tab, add the service or item name in the Description field.

Enter the following fields: PO QTY; UOM; Category; and Price.

SFS recommends that the agency refer to the commodity code to account code mapping on the SFS website to draft a list of the commodity codes used by your agency. Clicking on the category code icon will bring up close to forty thousand to select from.


Creating a Purchase Order Review the Ship To/Due Date information.

SFS recommends that the agency refer to the commodity code to account code mapping on the SFS website to draft a list of the commodity codes used by your agency. Clicking on the category code icon will bring up close to forty thousand to select from.


Creating a Purchase Order – Quantity vs. Amount A quantity-based PO is generally related to goods (quantity greater

or equal to 1).

An amount-based PO is generally related to services (quantity equals 1).

Quantity based POs (for Goods) must be liquidated by Quantity, which is the default encumbrance liquidation method in the SFS Purchasing module.

Amount based POs (for Services) must be liquidated by Amount to facilitate partial vouchering and payments. Liquidation by Amount is enforced by a flag called “Amount Only” available as an attribute on a PO line.


Creating a Purchase Order – Quantity vs. Amount It is very important for a Buyer (PO Processor) to remember to

check the “Amount Only” flag whenever a PO line item is a service- based purchase.

It is not recommended that a single PO contain line items that are both quantity and amount. This is because the full liquidation process of a PO becomes more complex and difficult to track.


Creating a Purchase Order – Receiving Tab

Receiving is set to Required by default for quantity-based POs and can be changed by the Buyer.

Receiving is set to Not Required by default for Amount only POs and can be changed by the Buyer.


Creating a Purchase OrderSchedules Page – ChartFields/Distribution The Schedules page is used to add or adjust details on a specific

purchase order schedule for a specific line item (for example, Ship To Location, Due Date, and more).

To ship quantities of the line item to multiple locations, additional rows must be inserted using the Add Multiple New Rows button. Once the desired number of rows exist, the Ship To locations and PO Qty can be modified.

Next, click the Distributions and ChartFields button to view line distribution. Enter the ChartField data and save by clicking the OK button. This will take you back to the Schedules page.

Click the Return to Main Page link to navigate back to the PO.


Creating a Purchase OrderSchedules Page – ChartFields/Distribution When identical or similar ChartField combinations are used

frequently, speed charts can be utilized. For additional information, please review Job Aid #JAA-TR000-029

Creating SpeedCharts and Job Aid #JAA-TR000-028 Creating SpeedTypes.


Associating a Contract to a Purchase Order


Associating a Contract to a Purchase Order A PO cannot be created and associated to a contract/amendment

until the contract transaction is Requested PO. To associate a contract to a PO, click in the Contract ID field and

enter the appropriate contract ID value or use the search button can be used to assist in finding the applicable contract ID and click the appropriate contract ID link.

Once the appropriate contract ID number is located, click the Contract Details link to view and enter the sequence number required to encumber purchase order funds against a contract.


Associating a Contract to a Purchase Order Once the appropriate contract ID number is located, click the

Contract Details link to view and enter the sequence number required to encumber purchase order funds against a contract.

Click the Look Up Sequence Number button and, if the initial purchase order, click the 0 link.


Associating a Contract to a Purchase Order Click the OK button and then click the Save button to make the

contract association.

Upon completion, the Account Summary displays the Maximum Amount of the contract, the Released Amount of the encumbrance, and the Remaining Amount of the contract against which additional purchase orders can be created.


Submitting a Purchase Order for Approval


Submitting a PO for Approval If a PO fails budget check, the budget status shows an error on the

PO header. Upon clicking the hyperlink, navigate to the Budget Exceptions page where more detail on the exception is provided.

Once a PO has been created, the header line and details reviewed, and it has passed budget check (status of Valid), the PO can be submitted for approval.

Click on the PO Approval tab on the Main Page, save, and click the Submit for Approval button. The PO will now enter the approval workflow.

An approver’s worklist will contain the POs that are ready for approval.


Submitting a PO for Approval


PO Dispatch


PO Dispatch Once a PO is approved, it continues in the purchasing lifecycle to be

dispatched and fulfilled by the vendor.

An approved PO must be dispatched in order to be used on a voucher. The PO batch processor role will be able to set up a run control to dispatch POs.


Purchase Orders Related to a P-Card


Demo


Learning Exercise

Create a Purchase Order

You have been asked to create a purchase order for office supplies.

The trainer will walk learners through steps to access the Training Environment.

Create a purchase order now.

30min

Note: Please refer to your exercise sheet handouts which contain the data you

need to complete this activity. The job aids on the SFS website can be used to assist you.


Additional Information


Editing a Purchase Order –Online vs. Bulkload In the event a bulkloaded PO needs to be changed by an online

user, update the Buyer field on the PO prior to saving it. Not doing so will cause the PO to be stuck and unusable by the agency.

In the event payments have already been paid against a PO and a PO change order was rejected for the PO, the Buyer must reduce the PO to the amount that has been paid against the PO in order to release the encumbrance.

In the event the bulkloaded PO has not had payments against it, that PO can be canceled.


Canceling a PO

To cancel a PO that has been rejected by OSC, the Buyer (PO Processor) will access the PO and click the red X. Funds are automatically liquidated. A PO can only be cancelled if there have not been payments against it.

When a PO that has been approved or dispatched requires a change, click the blue triangle to create a PO change order.


Overview of Match and Match Exceptions

Matching is set to “required” for all online POs. Per OSC policy, this must not be changed.

Refer to the following training materials for additional information:

• JAA-AP000-015 Overview of Matching and Match Exceptions• JAA-AP210-016 Viewing Match Exceptions• JAA-AP210-009 Resolving Match Exceptions


Process Changes – Purchase Orders (1 of 2)

What’s Changing – Key Processes and Terms

Old Process New Process

Purchase Orders are managed via many different processes.

All agencies use the same workflow in the SFS to process and record approvals.

Agencies create and approve purchase orders on paper before entering the approved transactions into their system.

Agencies use the system- generated workflow to approve purchase orders.

Several processes exist for locating transactions within the approval process.

All agencies use the same workflow in the SFS for the approval process.


Process Changes – Purchase Orders (2 of 2)



Vendor IDs are entered into a free form text field for Payee ID.

Agencies choose vendors from a list of valid vendors in the SFS.

There is no integration between the requisition and a purchase order.

In the SFS, requisitions can be used to electronically create a purchase order.

Each purchase order is completed manually.

In the SFS, a new purchase order can be created by copying from a previously-processed purchase order.

In order to encumber funds or create a purchase order, only the PO number and Chart of Account information is required.

All purchase orders in the SFS require a vendor ID number, item description, unique PO number, and ChartField distribution.


Process Changes – Contracts (1 of 3)



The AC340 is used to encumber funds on a contract.

In the SFS, funds are encumbered via a purchase order. An AC340 in the SFS is represented by a contract record (Single Transaction Summary) and a purchase order encumbrance.

Contracts are routed and approved manually.

Contract approvals are processed through standard workflow in the SFS and have multiple system-generated status codes that identify and govern their process through the workflow.

Electronically, agencies can change the vendor name associated with a contract; the original contract number and all other related data is retained.

In the SFS, vendor reassignments on a purchase order or contract must be addressed by closing the current purchase order or contract and then creating a new one. Agencies must request OSC BOC complete this task. Name change requests must be sent to OSC VMU.





Contract numbers can be reused. Agencies can reuse contract numbers if the OSC BOC rejects a contract for any reason. The number cannot be reused if there is an existing contract with the same number in the SFS.

The management of contract budgets and deliverables is frequently paper-based. Time-based deliverables are not communicated to the vendor consistently.

Agencies create PO releases from approved contracts in the SFS and contract budgets, and deliverables must be managed to the individual PO release.

Encumbrance transactions and vouchers are created against contract numbers.

Purchase orders are used for the encumbrance and must reference the contract number. Vouchers must reference purchase orders, not contracts.





OSC BOC can make changes to the contract transaction record in CAS on behalf of agencies, and update start and end dates for contracts, which start on OSC approval.

In the SFS, OSC BOC can only update the contract begin and end date. Changes or corrections will require that the contract be returned to the agency disapproved, and the agency will need to create a replacement contract (no resubmissions).

Agencies submit expense and revenue contracts using the same process.

To receive OSC approval, a revenue contract is first submitted as a procurement contract in the SFS. Entering a customer contract in the SFS allows the tracking of receipts related to a bill. Revenue receipts can have the procurement contract ID included, so a customer contract is not required in this instance.


Key Points to Remember The Buyer list is statewide. Therefore, if an agency selects a Buyer

(PO Processor) from another agency, the PO is not usable and the sourcing agency will not be able to edit the PO. The other agency Buyer cannot retrieve the PO because they do not have BU permission access.

It is highly recommended that the Buyer be very careful in selecting a Buyer using their exact user ID.

The agency Buyer Manager (Approver) reviews contract information entered into the SFS that will be used to create and manage purchases and purchase orders.


Purchase orders can be a step in the middle of the purchasing lifecycle. They can be created with or without a requisition depending on the agency, (agencies hosted by the BSC are required to create a requisition). If a PO is created from a requisition, the requisition is sourced to a purchase order.

Purchase orders can be created manually or by copying either an existing purchase order or contract.

Purchase orders can be created as a standalone PO or a PO that is associated to a contract.

The purchase order lifecycle begins when a PO is created. It is then budget checked, agency approved, OSC approved (if required as determined by the audit type), and dispatched. Once the agency receives the items, a receipt can be created.

If items do not meet an agency’s standards, they can be returned at the time of receiving or later, by creating a return-to-vendor (RTV) transaction.

Key Points to Remember


SFS Resources at www.sfs.ny.gov

Resource SFS Web Location

Commodity Code (Category) to Account Mapping

Chart of Accounts and Commitment Control Toolkit

Ship-to/Bill-to Process Agency Knowledge and Support

SFS Report Guide Reporting Toolkit

Training Courses, Job Aids, Quick Start Guides, and Supplemental Training Presentations

Training Toolkit

Information regarding OSC financial processes is located in the OSC Guide to Financial Operations at www.osc.state.ny.us/agencies/guide/MyWebHelp/


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statewide financial system program 1 purchasing training – po220 purchasing welcome to purchasing...

Documents

po buyer

po proxy po processors

po inquiry

purchasing workflow

purchasing information

po processors supervisor

po batch processor role

po reporting access