Materials Management Process -The Purchase Requisition

Materials Management Process-The Purchase Requisition What This Course Is About This course demonstrates the use of Purchase Requisitions in the Purchasing process. Purchasing is a component of Materials Management (MM). The Materials Management (MM) module is fully integrated with the other modules of the SAP System and supports all the phases of materials management: materials planning and control, purchasing, goods receiving, inventory management, and invoice verification. The SAP Purchasing component (MM-PUR) is responsible for the external procurement of materials and services. A Purchase Requisition is a request or instruction to Purchasing to procure a quantity of a material or service so that it is available at a certain point in time. The purchase requisition is created when a need for a particular good or service is identified. Who Should Attend This Course • • End users with the Agency Procurement Technician or the Agency Procurement Management role should attend this course. Agency/State Procurement Specialists (users that create purchase orders) will find this course beneficial if they wish to learn the first step (purchase requisitions) of the procurement process.

What You Should Know Before Coming to Class Before coming to class, you should know AASIS Basic Navigation or be an experienced user of AASIS. In addition, you should be familiar with basic accounting concepts. What You Will Learn from This Course This course provides a basic overview of the business processes related to the creation and processing of purchase requisitions using the materials management module in AASIS. You will learn to correctly create purchase requisitions in AASIS for goods and services requested by your agency. You will learn about the accounting and budgeting processes for purchase requisitions. You will learn about the reporting tools available in AASIS and how to use them to locate data associated with purchase requisitions. How This Course Is Organized The Materials Management Process -The Purchase Requisition manual provides the step-by-step processes in creating and approving purchase requisitions up to the point of purchase order creation.

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Materials Management Process-The Purchase Requisition

Legend - The following icons are used often. We will use the bracketed descriptions throughout the course. When you see the bracketed description either click the icon or press the keystroke combination. <Enter> or - Press the “Enter” key on the keyboard or click the “Green check “icon. (No keystroke function.) <Save—Ctrl+S> - Click the “Save” icon or press Ctrl+S. - Click the “Other Requisition” icon or

<Other Requisition—Shift+F5> press Shift+F5. <Execute—F8>

-Click the “Execute” icon or press “F8”.

<Back—F3>

-Click the “Back” icon or press “F3”. -Click the “Display next item” icon or press

<Display next item—F8> “F8”. <Display previous item—F7> press “F7”.

-Click the “Display previous item” icon or

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........................................................... 6  MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ...................................................... 42  TO DISPLAY THE MATERIAL MASTER RECORD.............................................. 27  WHAT HAPPENS WHEN GOODS ARE PURCHASED? ....................................................................................................................................................................................................................... 27  WHAT HAPPENS WHEN THE INVOICE IS ENTERED? ................................................................................. 26  VENDOR INVOICE CLEAN-UP............................................................................ 32  MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION .................... 32  THE VENDOR MASTER AND MATERIAL MASTER RECORDS ......................................................................................................................................... 27  WHAT HAPPENS WHEN GOODS ARE RECEIVED? ................................................................................................................. 28  BUDGETING FOR LOGISTIC TRANSACTIONS ................................................................................... 35  WHAT ARE MATERIAL MASTER RECORDS? ........ 29  WHAT HAPPENS WHEN THE PURCHASE REQUISITION IS ENTERED? ......................................................... 24  INTERNAL CONTROLS ................................................................................................................................................................................................ 26  ACCOUNTING FOR LOGISTIC TRANSACTIONS ......................................................... 51  TIMESAVING TIPS .................................... 24  SEGREGATION OF DUTIES ............................................................ INTEGRATION AND INTERNAL CONTROLS .................................................................................................................................................................................................... 32  WHAT ARE VENDOR MASTER RECORDS? ... 11  WHAT ARE GLOBAL SETTINGS? ................................................................................... 43  CHAPTER 5 ................................................................................. 10  WHAT IS MASTER DATA? ...................................................................... 7  HOW IS AASIS ORGANIZED? ..................................................... GLOBAL SETTINGS...... 6  HOW DOES AASIS OPERATE? .............................................................Materials Management Process-The Purchase Requisition TABLE OF CONTENTS: MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ......................................... 51  4 ................................ 24  WHAT ARE INTERNAL CONTROLS? ................... USE TRANSACTION MM03.................................................................................................................................................................................................................................................................................................................................................. 32  VENDOR INVOICE CLEAN-UP............. 10  MASTER DATA......................................................... 10  MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ............................................... 33  TO DISPLAY THE VENDOR MASTER RECORD.. 8  WHAT IS THE PROCUREMENT CYCLE? .......................................................................................................................................................................................................................................................... 10  VENDOR INVOICE CLEAN-UP............................................................................ 15  WHAT IS INTEGRATION? .............................................. ............................................................................................................ 6  OVERVIEW ..................................................................................................................................... 30  CHAPTER 4 ................... 29  WHAT IS THE 3-WAY MATCH? ................. USE TRANSACTION XK03.................................................................................................................................... 7  WHAT IS A BUSINESS PROCESS? ........................................................................................................ 25  CHAPTER 3 ................................................. 1  CHAPTER 1 ....................................................................................................................... 8  CHAPTER 2 .................................... 26  MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ......... 24  SECURITY ROLES..... 26  ACCOUNTING AND BUDGETING LOGISTIC TRANSACTIONS ............................................ ..... 6  VENDOR INVOICE CLEAN-UP...............................................

............. 52  SET YOUR DEFAULT VALUES ..........................................113  VENDOR INVOICE CLEAN-UP.......................................................................... 51  VENDOR INVOICE CLEAN-UP..................................................................113  MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ..................................................................................................... 67  HOW DO I ATTACH A DOCUMENT TO A PURCHASE REQUISITION? ................. 66  MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION .105  CHAPTER 8 ..................................................................................................................................................................122  REPORT FOR OPEN PURCHASE REQUISITIONS – TRANSACTION ZOPENREQ ........................................... 82  HOW DO I RETRIEVE THE ATTACHED DOCUMENT? .........................................................................................................................................................................................................132  5 ..........................................................................................................................................................................................................................................................................................102  HOW DO I VIEW THE FM DOCUMENT? ..........................................................................................................................................................................................................113  DELETING AND CLOSING PURCHASE REQUISITIONS .....................................................................................................107  VENDOR INVOICE CLEAN-UP.............. 66  TRANSACTION ME51N ............128  CHANGE PURCHASE REQUISITION – TRANSACTION ME52N ........................................................................................... 87  VIEWING THE PURCHASE REQUISITION ............................................................................................ 59  THE” LAYOUT SETTINGS” FEATURE ...........................................................................................................113  HOW DO PURCHASE REQUISITIONS REMAIN OPEN AND CONTINUE TO COMMIT BUDGET? ......107  APPROVAL/RELEASE PROCESS ............ 87  MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ........................................................................................................................104  HOW DO I VIEW THE CONTROLLING DOCUMENT? .......................................................... 66  VENDOR INVOICE CLEAN-UP.................................................................................................. 66  CREATING A PURCHASE REQUISITION ................................................................. 87  VENDOR INVOICE CLEAN-UP........................................................114  ACTUAL BUDGET REPORT -TRANSACTION Y_DEV_80000046 ............ 54  THE COPY ITEM FEATURE ..................................107  SELECTING APPROVERS ................................................................................................................................ 61  CHAPTER 6 ................................................................................................................................114  LIST DISPLAY OF PURCHASE REQUISITIONS – TRANSACTION ME5A .......................................................................................... 88  CHAPTER 11 VIEWING THE DOCUMENTS ... .....................................................................................................................................................................................108  HOW DO I CHOOSE APPROVERS? ............................................. 87  DISPLAY A PURCHASE REQUISITION – TRANSACTION ME53N....................................108  WHAT IS WORKFLOW? ................................107  MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ...........................................................108  CHAPTER 9 ............................................................................ 51  HOW TO SET THE “PO PRICE” FIELD ON THE VALUATION TAB.......................................................Materials Management Process-The Purchase Requisition MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ........... 84  CHAPTER 7 ....................

Materials Management Process -The Purchase Requisition Chapter 1 Overview 6 .

The AASIS structure looks something like this: Financials (FI) Module Sub-modules • Accounts Payable (AP) • Accounts Receivable (AR) • Asset Management (AM) • Cash Management (CM) • Controlling (CO) • Funds Management (FM) • General Ledger (GL) • Projects Systems (PS) • Special Purpose Ledger (SPL) Materials Management (MM) Module Sub-modules • • • Inventory (INV) Logistics Invoice Verification (LIV) Purchasing (PUR) 7 .Overview How Does AASIS Operate? The Arkansas Administrative Statewide Information System (AASIS) operates using SAP software that has been customized to meet the business needs of the State of Arkansas. A Sub-module is an individual component containing related transactions. AASIS includes business processes designed for day-to-day operations and its design enables the State to produce accurate financial reporting information.Materials Management Process-The Purchase Requisition Chapter 1 . A Module is a group of related components that serve complementary functions. How Is AASIS Organized? AASIS is organized into modules and sub-modules.

8 .Overview Human Capital Management (HCM) Module Sub-modules • • • • • • • Benefits ESS Organizational Management (OM) Payroll (PAY) Personnel Administration (PA) Time Training and Events (TE) What Is A Business Process? A business process is a series of defined procedural steps associated with a specific business function. A complete business process might be contained within a single sub-module.Materials Management Process-The Purchase Requisition Chapter 1 . the purchase requisition may be processed into a Request for Quotation (RFQ) which is an invitation extended to a vendor by a purchasing organization to submit a quotation (bid) for the supply of materials or performance of services. This course demonstrates the process for creating and troubleshooting the purchase requisition. an end user with the Agency/State Procurement Management role must approve it. The purchase requisition may also be processed directly into a Purchase Order (PO) or Outline Agreement (OA). Documents Processed from the Purchase Requisition Upon approval. or it might cross sub-modules and modules. the person with the role of Agency Procurement Technician will create a Purchase Requisition in AASIS. When a need has been identified. Once the purchase requisition has been created. The Department of Finance and Administration recommends using the purchase requisition because it is the start of the procurement process in AASIS prior to further processing. What is the Procurement Cycle? PR PO GR IR Payment Purchase Requisition The first step in the procurement cycle is determining a need for a good or service. Procurement is part of the Materials Management (MM) module. The purchase requisition process is the first step in the Procurement cycle.

Once created. 9 . and the FMF0 program runs each night to change the budgeted commitment to an expense in FM. fund balance. The purchase order history is recorded on the PO and the item is closed once the entire quantity is received or the quantity received is within set tolerances. and pricing. Logistics Invoices are linked to the Materials Management module of AASIS and must be used when the invoice being paid was for items received via a system generated purchase order. conditions. The Agency/State Procurement Specialist will process all items approved by the Agency/State Procurement Manager.m. Marking Goods and Services for Receipt with Transaction MIGO The next step in the procurement cycle is entering the Goods Receipt using the MIGO transaction. expenses and other sources and uses. revenues. Though this is an MM process. The purchase order also goes through an approval (release) process. Accounts Payable personnel perform this transaction. The General Ledger accounts are automatically updated by the value of the receipt. Payment The posted invoice will remain open until it is paid via the payment run. The Payment Program runs Sunday thru Thursday at 8:00 p. The General Ledger accounts include assets. liabilities.Overview Creating the Outline Agreement or Purchase Order An Outline Agreement is a contract created between the state and a vendor for the intent to purchase an estimated quantity of materials/services for a predefined net price and an estimated target value over an extended period of time. Once the goods receipt is posted. A Purchase Order (PO) identifies specific materials/services to be purchased as well as the negotiated terms. a material number is created. a PO number is generated by the system. The goods receipt automatically updates the purchase order. The budget amount is not affected by the GR and remains a commitment. Outline agreements do not commit budgetary funds. Once created. Budget commitments from the purchase requisition are updated in accordance with prices on the Purchase Order. Entering the Logistics Invoice Verification (MIRO) The final step in the procurement cycle is the Logistics Invoice Verification using the MIRO transaction. The purchase order is then printed out and sent to the vendor.. the OA must go through the approval process. The goods receipt is posted when you have received goods and/or services that have been ordered using a purchase order.Materials Management Process-The Purchase Requisition Chapter 1 . The Outline Agreement can be created by referencing a Request for Quotation (RFQ) or a Purchase Requisition.

Materials Management Process -The Purchase Requisition Chapter 2 Master Data. Global Settings. Integration and Internal Controls 10 .

For example. they might choose to have two funds – one for the state money and one for the federal money – although this is not necessary. how they impact the Materials Management process. most MM sub-modules. Global Settings. If they prefer to keep the money separate. Some of the Master Data elements are: Fund is a seven-character numeric or alpha-numeric code that represents one level of an agency’s fiscal and accounting responsibility. which answers questions such as what it is. Master data is central to integration in AASIS and is also part of system internal controls. Some pieces of master data can be used by all end users. Global Settings. etc. so we will begin with master data. a fund is a self-balancing set of books.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. but most master data is used by multiple sub-modules in transactions. while others are more restricted. Integration and Internal Controls. Master data is also used for deriving additional information. For example. which reduces data entry for end users and facilitates integration and reporting within AASIS between the modules and submodules. but cost centers are used by all FI submodules. the CO sub-module “owns” a cost center because that is where the master record is created and maintained. you must understand the connections between master data elements and how they are used in various transactions. 11 . numeric or alpha-numeric code. Master records are identified by a unique alpha. Integration and Internal Controls In this chapter we explain about Master Data. The fund is master data. What Is Master Data? Master data is information that remains the same over a long period of time. In other terms. In accounting terms. where cash and other financial resources are recorded for the purpose of administering authorized activities. or information that is needed often and in the same form. and even HCM sub-modules. and how and why they affect the way you do your job. and payments or outgoing transfers to reduce the cash balance. a fund is similar to a bank account. You need to understand what they are. and AASIS allows extensive reporting of revenues. where it’s located. who is responsible for it. Master data consists of the master record. some agencies receive money from both the State and the Federal government. Each fund has deposits or incoming transfers to increase the cash balance. Funds can be used by agencies to keep track of different funding streams (sources of revenue) or to “separate” cash used for multiple purposes. expenses and cash on a Fund basis. which you will see mentioned throughout this course. Each piece of master data has a module or sub-module that “owns” the master record. The debits and credits must be equal. Because of the derivations.

GL Accounts are generic to all state agencies.). AASIS uses four pieces of master data to make up the budget “quad”: fund. Cash funds. are letters. Department of Finance & Administration-Office of Accounting (DFA-OA) adds General Ledger accounts to the Chart of Accounts when the need arises. 12 . The functional area is master data. Agency budgets are created to limit how much an agency can spend based on legal authorizations. General ledger accounts are “owned” by the GL sub-module but are used throughout the FI and MM modules. General Ledger Account is a 10 digit numeric code used to classify and categorize financial activity within AASIS and represents the line item detail for all financial transactions. Integration and Internal Controls There are two types of funds in AASIS: Treasury funds represent monies maintained in the State Treasury. Functional Area is a three. the seven-character fund code is alpha-numeric. functional area and commitment item. the first three characters. For Treasury funds. funds center. Each agency has only one functional area. according to the agency’s Appropriation Bill passed by the State Legislature in the most recent regular session. Funds Center is a four-or-five-character alpha-numeric code that represents the agency’s appropriation. all “owned” by the FM sub-module. at least. Cash funds represent monies maintained in commercial bank accounts. Public Safety. Constitutional Office. Functional areas correspond to the general purpose of the agency (Health and Human Services.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. or the legal authority to spend certified income. Education. The funds center is master data. The general ledger account is master data. etc. and the remaining characters are numbers. For Funds are “owned” by the FM sub-module and are part of the “budget quad” in AASIS. Global Settings.or four-character alpha code that represents the high-level Comprehensive Annual Financial Report (CAFR) classifications. General Ledger accounts (GL accounts) are grouped by category in the AASIS statewide Chart of Accounts. all seven characters of the fund code are numbers.

each of which serves a different purpose in the financial statements. artwork. vendor liabilities. Examples include cash balances. you will mostly be working with Assets. Fixed asset accounts are used for recording and tracking individual pieces of equipment. Individual expense accounts are used to classify how your agency spends its money. combined with other pieces of master data. but we also have what we call “Fixed Assets” in AASIS. fixed assets (items of value. Integration and Internal Controls There are six broad categories of GL accounts. Global Settings. allow you to produce reports detailing how much has been spent on cleaning supplies. Individual fixed assets are maintained in the Asset Management sub-module. investments. In MM. land. also referred to as “capital equipment”). or donated to. Expenses and Liabilities. cash owed to the state. and other items purchased or constructed by. office supplies. bond payment liabilities. “Assets” is a category of GL accounts representing items that increase the financial value or improve the financial position of the State. and each category has a different 10-digit number range: Account Type Balance Sheet Balance Sheet Balance Sheet Account Category Assets Liabilities Fund Balance Revenues Expenses Other Sources and Uses Number Range 1000000000 1999999999 2000000000 2999999999 3000000000 3999999999 4000000000 Profit & Loss 4999999999 5000000000 Profit & Loss 5999999999 6000000000 Profit & Loss 6999999999 NOTE: There is an account category called “Assets”. etc. Examples include payroll liabilities. the state. etc. but their balances are summarized and reported in the General Ledger in the 1990000000 – 1999999999 account range in the “Assets” section. etc. and a general idea of what created the obligation. 13 . buildings. uniforms. services. One of three liability reconciliation accounts will be assigned to each individual vendor master record.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. These accounts. Liabilities represent obligations – how much your agency owes.

Integration and Internal Controls A reconciliation account is used to summarize the balances in the individual vendor accounts and report the totals in the General Ledger. $100. Cost elements only exist for GL accounts in the 4000000000 – 6999999999 range. and each account group has a unique numeric range of nine digits. except the cost element is “owned” by the CO sub-module and is only used there. The cost element number is the same as the GL account number. Commitment Item is a seven-digit numeric code that represents the broad categories of detailed line items created within all financial transactions. with the exception of some of the Fixed Asset accounts in the 1990000000 – 1999999999 range. etc. which is used for State Agency vendors. There are currently three vendor reconciliation accounts: 2110001000 – Vendor Accounts Payable. among other things. Cost Element is the equivalent of the 10-digit GL account and represents the line item details for all revenue and expense financial transactions. Regular Salaries. The liability reconciliation account chosen determines what must be done with the account balance when it comes time to produce the financial statements. The Special Purpose Ledger module (SPL) does not “own” any master data. depending on the type of customer. for example. 2110002000 – Employee Accounts Payable.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. an agency may be authorized to spend no more than $1 million for Regular Salaries. Global Settings. Customer Master Records are categorized by account groups. Appropriation bills are specific to the commitment item (“character code”) level. Customer is a business partner to whom the state has provided goods or services in return for payment and is identified by a unique Customer Account number. Matching. 14 . by Fund and Business Area. For example. Anything that posts to the General Ledger automatically posts to the SPL. Commitment items create functional groupings of expenditures and revenues. SPL is a ledger used for financial statement reporting at the fund level. within the FM submodule. The difference is that SPL postings include a Fund and Business Area on every line and force each document as a whole to balance. which is used for employee vendors (used for travel reimbursements but not payroll). Professional Services and Capital Outlay. $2 million for M&O. The GL number will derive the commitment item. 2110003000 – Due to Other Funds. Commitment item categories include Maintenance & Operations. which means all financial transactions. Extra Help. The account group is identified by the first or first three digits of the account number.000 for Capital Equipment. whereas the General Ledger documents do not. Conference & Convention Fees. which is used for most vendors. GL account 5050002000 is associated with cost element 5050002000. debits and credits.

Understanding the document types is also very useful when executing or reading reports. while others derive the business area from the cost center. Sometimes the transaction you choose will determine the document type used. and sometimes you must choose the document type. Global Settings. Purchasing Organization (Business Area) is a four-digit numeric code representing an organizational unit of the State. each agency has a unique business area code in AASIS. MM does not use business area (it uses Purchasing Organization instead). Document type is often a selection option on reports and can help you narrow the selections and improve the speed of the report. Business area is used for reporting purposes and enables users to produce financial statements by agency. Company Code is a three-character alpha code that represents the State’s highest level legal reporting entity. and the CO and FM sub-modules have only limited uses for business area. In AASIS.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. Integration and Internal Controls What Are Global Settings? Global settings are used like master data. Some transactions require you to enter a business area. The company code is a global setting. Some important examples of global settings for MM users are Company Code. The document types applicable for the Materials Management process are: 15 . For instance. except they are created through configuration by ASC and are not owned by one particular module. Purchasing Organization (Business Area) and Document Types. Document Type is a two-character alpha-numeric code that identifies the purpose of the business transaction and is also used to control what you can do within a transaction. Business area is used by most FI sub-modules. The only Company Code used in AASIS is ARK. document type RE is always a Vendor Invoice (Logistics Invoice Verification). business area represents an agency or division of an agency. It is a global setting. but not all.

RFQ (OSP/PSC Request for Qualifications) PR Goods Receipt Document Type Description WE Goods Receipt Usage Recognize the receipt of goods ordered via the AASIS procurement process Logistics Invoice Verification Document Type RE Description Vendor Invoice Usage Logistics Invoice 16 . to PO Req. to Prof. RFQ (ABA Request for Qualifications) PC OSP Prof. CB (Professional Service Quote Bid) ABA Prof. PO Req. Svc. OA Normal QC ( Quote Constitutional Bid) Normal CB ( Competitive Quote Bid) OSP RFQ (OSP Request for Qualifications) Usage Prof. to Prof. Svc. Integration and Internal Controls Procurement Document Type NB NV PB PV NC NQ NR PB Req. Global Settings. Svc.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. to OA Req. Svc. Svc.

either for a Treasury fund or a Cash fund The issued payment has been received by the vendor and submitted to the Treasury or Commercial Bank for redemption ZP Vendor Payment Document ZR Bank Clearing 17 . Global Settings.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. Integration and Internal Controls Cash Management Document Type Description Usage Payment generated via the automatic payment run.

Cost centers are also used to derive other information when used in a transaction. What you enter into that field will indicate the information needed on the Account Assignment tab. 18 . business area and functional area – in other words. at least one unique cost center for each county office. Cost centers are “owned” by the CO submodule. cost centers enable derivation of fund. K = cost center. Integration and Internal Controls How Master Data and Global Settings are used in the Purchase Requisition When entering a purchase requisition one important field is the “account assignment category” field. Global Settings. This selection will require you to enter a cost center. Within AASIS. An agency’s cost center structure usually reflects the organizational structure of the agency.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data.g. Cost Center is a six-digit numeric code that serves as a financial data collector for areas of responsibility within an agency. funds center. e. The cost center is master data. most of the budget “quad”. The G/L code is derived from the material master record and may be changed. and different cost centers for central administration units.

Global Settings. Integration and Internal Controls F = Order. Internal Order is (up to) a nine-character alpha-numeric code used to collect the financial data of an agency for reporting purposes. 19 . This selection will require you to enter a cost center and an internal order number.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. Internal orders are not used to derive other information. Internal orders are “owned” by the CO sub-module.

Project definitions are “owned” by the PS sub-module. WBS elements are used in AASIS to record activity against grants or construction projects. Project Definition – An alpha-numeric code that is the high-level definition of a construction project or grant award. funds center and functional area are derived from the WBS element rather than the cost center. Integration and Internal Controls P = Project. Global Settings. Each WBS element is part of the hierarchical structure of a project definition and is used as a financial data collector to serve the reporting needs of an agency. which means the fund. WBS Element is an alpha-numeric code that is a component of Project Systems within the CO sub-module.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. 20 . WBS elements are “owned” by the PS/CO sub-modules. Some WBS elements are “real” or non-statistical. This selection will require you to enter a cost center and a WBS element. but are more commonly associated with the CO sub-module because that is where most of the reporting takes place. Each project definition contains at least one lower-level WBS element. non-statistical WBS elements are normally used with construction projects.

The asset master record includes the useful life of the asset. Blank.(Leave blank): For plant purchase requisitions for re-stock orders.Unknown: If the unknown account assignment is used the account assignment tab does not appear. This category is mostly used for Outline Agreements where the quantity is unknown. etc. or in the process of being constructed . the value of the asset. 21 . Each asset has a unique nine-digit number.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. 1300 -. donated. constructed. which is used for tracking and reporting purposes.in AASIS. Asset is a piece of equipment or other non-inventory item . This selection will require you to enter an asset number. determined by the number range assigned to the asset class. This account assignment category should be used for the following plants only: 1000 – Physical storage location used by the Department of Human Services.Benton 1350 – Physical storage location used by Arkansas State Hospital. the cost center to be used for financial information. U = Unknown. U.Physical storage location used by ASH . Global Settings. Integration and Internal Controls A =Asset. The asset class chosen when the asset is created determines which Fixed Asset reconciliation accounts are used in the General Ledger. There is no budget committed.purchased.

Materials Management Process-The Purchase Requisition Chapter 2 – Master Data.standard location used within the system.(Stocked plant) physical storage location used by ASH– (Benton) 1350 – (Stocked plant) physical storage location used by the Arkansas State Hospital. Plant codes currently used for storage locations within the State are: 9999 – Reference plant . although there are a couple of agencies that have their own plants. 1000 – (Stocked plant) physical storage location used by the Department of Human Services. It includes a short material description and its units of measure. Each material master record includes a suggested GL account for use in purchase orders. however the GL account can be changed when you create the PO but this should not be done on a routine basis. A material master represents a good or service which can be procured by authorized plants through the purchasing sub-module in MM. Plants represent an inventory warehouse location. This number groups together goods and services by similar characteristics or attributes. Global Settings. The material master record also contains a material group number. Integration and Internal Controls Two more pieces of required master data needed on a purchase requisition are the material number and the plant. 22 . 1300 . Plants are further controlled by purchasing organizations and purchasing groups. Material Master Record represents a specific material or service and is assigned a unique number within AASIS. All modules in AASIS that will access the material or service for transactional and reporting purposes will use this number. The material master records for non-stock items are only created for plant 9999. Purchasing groups are defined by the agency and can represent one or many individuals. most of the state uses plant 9999. but must be created and maintained within AASIS by ASC staff. 8888 – Used only by M & R.

Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. tax identification number. Integration and Internal Controls The vendor is not a required field on the purchase requisition. and the reconciliation General Ledger account used for financial reporting. Vendor is an authorized entity from whom the state can purchase goods or services and is identified by a unique Vendor Account number. Vendor Master Records are categorized by account groups. 23 . The Vendor Master Record contains such information as vendor name and address. bank account information. depending on the type of vendor. but if entered on the requisition the information will populate into the purchase order once the requisition is referenced. Global Settings. and each account group has a unique numeric or alpha-numeric range of two to nine characters.

Integration and Internal Controls What Is Integration? Several of our business processes are possible because AASIS is “integrated” to allow the transfer of information between the modules and sub-modules without the need to enter the same data multiple times. is reasonably accurate and not likely to lead to misstatement on the statewide financial statements (CAFR). Auditors review the internal controls in AASIS and in your agency to ensure that the financial information posted by your agency.Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. 2) To prevent users from using master data that does not pertain to their area of responsibility. 24 . Integration allows the recording of expenses and payments in such a way that other sub-modules of AASIS can use the information for their own reporting needs. and the protection of the assets of the State of Arkansas (fraud prevention). The MM process enforces internal controls through segregation of duties and master data control via the use of security roles. Internal Controls The primary goals of internal controls in AASIS are: 1) To ensure that no user can perform an entire business process without the knowledge and participation of at least one other person.e. the physical handling of cash). but your agency should also have internal control policies and procedures in place for activity that takes place outside of AASIS (i. This reporting is made easier by the use of global settings and master data. but most is not. Security Roles As an AASIS user. and thus by the State of Arkansas. What Are Internal Controls? Internal controls are a checks-and-balances system designed into the business process to ensure system security. Internal controls are part of every business process within AASIS. some master data is agency-specific. like the global settings. Global Settings. Security roles can also be used to control access to such Global settings and master data as Business Area. These security roles determine which transactions you can and cannot access. you have security roles assigned to your User ID. data integrity and accuracy. Vendor Master Record and Vendor Account. thus limiting what you can and cannot do once you get into AASIS.

Materials Management Process-The Purchase Requisition Chapter 2 – Master Data. Global Settings. Integration and Internal Controls Segregation of Duties One person cannot complete the entire MM business process. Review is critical. not only for fraud prevention but for data accuracy. 25 . • • • • • • • • • DFA-OSP creates and maintains the Vendor Master Record and the Material Master Record One Agency user creates the purchase requisition A second Agency user approves the purchase requisition Another user creates the purchase order Another user approves the purchase order Another user creates the goods receipt Another user creates the MIRO The Auditor of State produces and mails the payments DFA processes the BAI file to clear the payments Dividing the process between different agencies. means that one person cannot do the entire process without any kind of review. and between different people within an agency.

Materials Management Process -The Purchase Requisition Chapter 3 Accounting and Budgeting Logistic Transactions 26 .

Example: Agency orders 10 boxes of pencils at $5.00. IR=Invoice Receipt) As soon as the end user saves the MIGO transaction. The unit dollar value comes from the purchase order.Materials Management Process-The Purchase Requisition Chapter 3 – Accounting and Budgeting Logistics Transactions Accounting for Logistic Transactions What Happens When Goods Are Purchased? The purchase requisition and purchase order do not cause AASIS to make accounting entries in the General Ledger or Special Purpose Ledger. General Ledger Entries Office Supply Expense _______________________ Debit 50 GR/IR _______________________ Credit 50 27 . Office Supplies Expense is debited for $50. What Happens When Goods Are Received? The MIGO transaction is used to record a receipt of goods ordered through the AASIS purchasing process. AASIS records the following accounting transaction: The expense or asset account is debited The GR/IR liability account is credited The amount of the debits and credits are the dollar value of the quantity of goods received.00 per box. (GR=Goods Receipt.00 and GR/IR is credited for $50. The quantity received comes from the goods receipt. All 10 boxes are received. This is because government rules require us to keep up with obligations or “encumbrances” to our budgets. The goods receipts and invoice receipts are recorded through a special account called the GR/IR account. but modified and full accrual accounting rules do not recognize a transaction until the goods are actually received. The purchase requisition and purchase order do cause AASIS to record “commitments” in the controlling module and the FM (budget) module.

Materials Management Process-The Purchase Requisition Chapter 3 – Accounting and Budgeting Logistics Transactions What Happens When the Invoice Is Entered? The MIRO transaction is used to record the invoice for goods ordered through the AASIS purchasing process.00 and the vendor account/Vendor Accounts Payable is credited for $50. The amount of the debit to the GR/IR account is the dollar value of the quantity of goods invoiced.00. As soon as the end user saves the MIRO transaction. AASIS makes the following accounting entries: The GR/IR account is debited The vendor account is credited The vendor account credit “rolls up” to the Vendor Accounts Payable Reconciliation General Ledger Account. General Ledger Entries GR/IR 50 MIGO Vendor AP 50 50 MIRO 28 . The amount of the credit to the vendor is the amount to be paid to the vendor. Any differences between the amount to be paid to the vendor and the debit to the GR/IR are debited or credited to the expense or asset account of the item being invoiced. Example: Agency enters invoice for the 10 boxes of pencils in the earlier example. which aggregates all of the vendor accounts. GR/IR is debited for $50.

When the purchase order is created with reference to the purchase requisition (there is no change in price and/or quantity) you will see the commitment relieved from the purchase requisition. you would enter a cost center on the account assignment tab. commitment item combination. If a purchase requisition is created with an account assignment of “K”. An “account assignment” designates which cost objects will be used to commit your budget for the amount of the purchase and where the expense is to be charged. If the requisition is created with a “U” for unknown. The quantity multiplied by the price stated on the requisition will be the amount committed against the fund. 29 . an alternate account assignment must be selected at the point of purchase order creation. functional area.Materials Management Process-The Purchase Requisition Chapter 3 – Accounting and Budgeting Logistics Transactions Budgeting for Logistic Transactions What Happens When the Purchase Requisition is entered? A purchase requisition can be created with a “U” in the “account assignment” field. You will receive a popup box and double click on “Funds Management Doc”. your budget will not be committed. NOTE: To view the Commitment/Actual Line Items by Document Number screen. funds center. funds center. That cost center would then derive the fund. If you used “U” for the account assignment in the purchase requisition. functional area and commitment item. go to Environment>AC Commitment Documents.

quantity and price on the goods receipt must match the amount on the invoice receipt.Materials Management Process-The Purchase Requisition Chapter 3 – Accounting and Budgeting Logistics Transactions The commitment is transferred to the purchase order. a process known as invoice verification or “three-way match” takes place. In the example below. Within the three way match. It is important to always complete the procurement cycle because every document in the procurement process also creates additional postings within other modules. Completing the procurement cycle also insures the proper function of the three way match. When the invoice is received. the commitment amount also includes sales tax because tax code “P1” was chosen on the purchase order. The commitment will become an expense once the follow-up program (FMF0) runs.9 items @ 100 each 30 . The commitment remains the same after the goods receipt (MIGO) transaction is created. When the invoice is entered. What is the 3-Way Match? We talked about the Procurement Cycle in Chapter one. In order to pay an invoice against a purchase order. an entry will be made in the logistic invoice verification (MIRO) transaction. two steps must already have been completed in AASIS: The purchase order and a goods receipt. Example 1: A correct Three-Way Match Goods Receipt – 10 items @ 100 each Invoice Receipt – 10 items @ 100 each Example 2: An incorrect Three-Way Match Goods Receipt . That will relieve the commitment in the purchase order and commit budget at the invoice level. It will remain a commitment even after the payment program runs.

and other unexpected items. AASIS puts a system payment block on the invoice. whichever is less. 31 . rounding of sales tax.Materials Management Process-The Purchase Requisition Chapter 3 – Accounting and Budgeting Logistics Transactions Invoice Receipt. The system block should be reviewed by management and removed based upon established agency internal controls. If the invoice amount is entered for more than 10% more or $100 more than the amount of the goods receipt. AASIS allows an invoice to pay if it matches within 10% or $100. Because of unplanned shipping costs.10 items @ 100 each NOTE: There are exceptions to the 3-Way match.

Materials Management Process -The Purchase Requisition Chapter 4 The Vendor Master and Material Master Records 32 .

which serves as the vendor account number in MM documents. Vendor groups are also a means of restricting or permitting access by agency personnel through their security roles. that is. Transactional information (when. you must fill out a form and send it to DFA-OSP. The master record contains address and contact information. but the link between the Vendor Master Record and the transactional data is the vendor account number. Vendor groups are a means of organizing vendors according to type. Agencies only have access to display the vendor master records. and settings that affect integration points between MM and other sub-modules. 33 . agency specific information. and even then the display access is restricted to some purchasing users and accounts payable users. or if you want to request a new vendor master record to be created. depending on the vendor group to which the vendor belongs. what and how much we bought from the vendor) is maintained elsewhere. Keep in mind that the vendor master record does not contain any transactional data. Each vendor master record is assigned a unique number. A vendor master record holds identifying information about a specific business entity or person from whom the State is authorized to purchase commodities or services. it only shows who and where the vendor is.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records Two important pieces of master data for the procurement process are the Vendor Master and the Material Master. What Are Vendor Master Records? Vendor Master Records are created and maintained by the Department of Finance & Administration – Office of State Procurement (DFA-OSP). not how much business the State has actually done with the vendor. If you find something on a vendor master record that needs to be changed.

Entergy. from a Treasury Fund or Check from cash fund. State Agencies. 100000000 199999999 etc.). 34 . Before you create procurement documents. not for Payroll. Office Depot and Gateway. such as Wal-Mart. who have multiple vendor account numbers. Every state employee who is paid through AASIS also has a vendor number. ACH. you must be certain that the vendor account number you use is the correct one. verify the vendor information before starting the data entry. Each state agency has at least one vendor number. Office Depot. There are several vendors. AT&T. ADDR One-Time Address Vendor A000000 C000000 AGEN State Agency Vendors 9990000 9999999 EMPL Employee Vendors 2000000 2999999 VEND Vendors General The General Vendor group is used for commercial entities from which the State purchases goods or services (Wal-Mart. architectural and advertising agencies. The only vendor types used in MM are “AGEN” and “VEND”. To avoid creating errors that must be corrected later. These vendors are used to reimburse employees for travel expenses.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records Vendor Group Description Number Range W000000 W999999 A999999 C999999 Usage Used for vendors to be paid by warrant.

35 .Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records To display the vendor master record. use transaction XK03.

Enter the vendor number. <Enter> 2 1 36 . which is not functional) by clicking the “Select all” icon. 2.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records 1. Click all of the checkboxes (except Withholding tax. Enter company code “ARK” and the purchasing organization (business area). or use the “match code” icon to search.

. Contact information.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records The first page displays the vendor’s or individual’s name and address. if available.. <Next screen> 37 . Name 2 is the “Doing Business As. will be displayed at the bottom of the page.” name – the name you will most likely be familiar with. Name 1 will be the corporate or individual name (the name to which the 1099 documents are issued).

Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records As we stated earlier, the authorization “Vend” means that this vendor can be used in procuring goods and services through the procurement process. The jurisdiction code is used by the tax calculation software to determine the amount of sales tax applicable based on the vendor location. <Next screen>

The Alternative Payee screen is rarely used. garnishment of vendor payments. <Next screen>

It may be used in case of

38

Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records The Accounting Information screen displays the reconciliation account (vendor accounts payable). The Authorization designation indicates what type of vendor it is (AP vendor, state agency, employee, etc.) This screen also displays the withholding tax code. <Next screen>

39

Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records The Payment transactions accounting screen displays the payment terms set up for the vendor and the payment methods that the vendor can accept. <Next screen>

40

(For example. <Next screen> The Purchasing data screen contains information specific to your purchasing organization.) <Next screen> 41 . your purchasing organization may have different payment terms than the vendor lists for the state.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records This screen is not used.

Purchasing groups are defined by the agency and can represent one or many individuals. This number will be used by all modules in AASIS that will access the material or service for transactional and reporting purposes. A material master represents a good or service which can be procured by authorized plants through the purchasing sub-module in MM. Most of the state uses plant 9999. although there are a couple of agencies that have their own plants. The material master records for non-stock items are only created for plant 9999. It includes a short material description and its units of measure. The material master record also contains a material group number. the material master record represents a specific material or service and is assigned a unique number in AASIS for a specific material or service.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records In some cases. but must be created and maintained within AASIS by ASC staff. This information is contained on the Partner functions page and is specific to each purchasing organization. What Are Material Master Records? As previously stated. This number groups together goods and services by similar characteristics or attributes. Plants represent an inventory warehouse location. purchase orders and invoices may go to different vendor addresses. but you can change the GL account when you create the PO. 42 . Each material master record includes a suggested GL account for use in purchase orders. Plants are further controlled by purchasing organizations and purchasing groups.

43 . use transaction MM03.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records To display the material master record.

Click the “Organizational levels” icon. Highlight the tabs you wish to view. 2. 2 1 44 .Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records Type in the material number that you wish to view or you can do a search using the “Search” icon. <Enter> 1. To view all the tabs click the “Select all” icon.

In the sample below. Enter the plant number to pull up the materials that you wish to view. 6. Remember.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records 3. Continue to the Basic data 2 tab. this number groups together goods and services by similar characteristics or attributes. The material group number is also displayed. 6 5 4 45 . On the Basic data 1 tab you can view the base unit of measure for the material selected. <Enter> 3 4. 5. “EA” is the unit of measure.

7 46 . Continue to the Purchasing tab.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records On the Basic data 2 tab the material number and description are displayed. 7.

If there is a tolerance limit set of 10% this means that you will accept 10% below or above the quantity stated on the purchase order. You may also view the plant where the good or service is stored. “1” allows Purchasing to order a material in a unit that differs from the base unit defined for the material. The Purchasing value key will identify if a tolerance will be allowed on the purchase. One example in setting a tolerance would be in the procurement of printing. The Base Unit of Measure is displayed.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records The material number and description are also displayed on the Purchasing tab. Tax ind. The Material group is displayed. Continue to the Foreign trade import tab. (Variable order unit). Var. 11 8 10 12 9 47 . 9. F. OUn. 12. 8. material indicates whether the good or service is taxable or exempted from taxes. 10. “1” means the item is taxable 11. A “Purchasing value key of 01” means that there is not a tolerance limit set in the master record.

Continue to the Accounting 1 tab. Continue to the Purchase order text tab. Again you can view the material number and description. A more detailed text can be viewed in the text box.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records From this tab you can view the material number. description and plant. 48 .

Continue to the Plant stock tab. 14. plant and the base unit of measure which in this example is “EA”. The G/L account can be changed on the PR. 14 15 Again. 13. The “Price Control” field is also displayed. The four digit number entered in the “Valuation Class” field indicates which G/L will be used on the requisition. It is recalculated automatically by the system after each goods movement or invoice entry.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records From the Accounting 1 tab you can view the material. Continue to the Accounting 2 tab. A “V” in this field means “moving average price”. you can view the material number. description and plant. 49 . The moving average price is calculated by dividing the value of the material by the quantity of the material in stock.

This will take you back to the “Main Menu” screen.Materials Management Process-The Purchase Requisition Chapter 4 – The Vendor Master and Material Master Records On the last tab you can view the material number. 50 . description and base unit of measure. To exit the report “green arrow back” twice.

Materials Management Process -The Purchase Requisition Chapter 5 Timesaving Tips 51 .

Go to: System>User Profile>Own Data 1. time would be saved. the set price is known at the purchase requisition creation. In the past. Click on the Parameters tab. which defaults the price to the purchase order.Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips How to Set the “PO Price” Field on the Valuation Tab. 1 52 . for some agencies. However. Agencies can maintain personal settings at the user level to either adopt or not adopt the price as a default. agencies that created purchase requisitions wanted to know why the purchase requisition price did not default to the follow-on purchase order. The system was not configured for this because the purchase requisition price is usually an estimate. The system does default the price when converting a request for quotation to a purchase order because the price is set and an info record is created. By adopting the price from the purchase requisition at purchase order conversion.

2 3.Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips 2. Type “EFB” in the “Parameter ID” field. 4. Type “01” in the “Parameter value” field. <Save> 3 4 53 . Scroll down to the next blank parameter ID.

Transaction ME51N 1.Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips Set Your Default Values Setting default values will save you steps when creating a purchase requisition. Before we create a requisition let’s set our default values. Click on the “Default values” icon. Fields that remains constant can be set as default values. These values will automatically populate the fields each time a purchase requisition is created. 1 54 .

Click on the “More fields” icon default settings. “Acct. 2.cat” (Account Assignment Category).Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips From this screen you can set the “Item category”. to select additional 2 55 . “Delivery date” “Requisitioner” and “Tracking Number” as default values.assign.

In this example we will set up the “purchase order price” and the “plant” as default fields. Each of the “Hidden fields” may also be used to set default values. 4. Highlight the lines and click the single arrow pointing to the left. 3 4 56 .Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips 3.

<Enter> 5 57 .Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips 5. The “Plant” and “Purchase Order Price” are now in the display field column.

58 .Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips Now we can enter “9999” in the “plant” field and set the “PO price” field to “As net price”. <Save> Note: You do not have to click the “Always propose” box to have the settings default.

highlight the line and click on the “copy item” icon. 1 59 . They are identical except each computer has a unique asset number that will need to be entered. For example. To copy a line item.Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips The Copy Item Feature The copy item feature allows the requisitioner to copy one line item (item 10) to the next line item (item 20). you can use the copy feature to save time. your agency is purchasing 5 computers. Instead of entering all the same information 5 times on the purchase requisition. 1.

2 60 . Make any changes to new line items such as changes to the account assignment category. quantity. delivery address or any field that is not grayed out. In this example Item 20 had a new asset number that needed to be entered on the Account Assignment tab. just highlight the item and click on the “copy item” icon.Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips 2. To continue the process. Item 10 was copied to item 20. material.

1. For example. click on the dropdown to the right of the “Layout Settings” icon.Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips The” Layout Settings” Feature You can add or delete a column on the purchase requisition. To add or delete a column. 2 61 . 1 2. Click on “Change Layout”. the requisitioner might want to add a “total value” column to the PR.

Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips 3. To move a column. 5 3 4 62 . highlight the line from the group on the right side of the screen. such as “total value”. highlight the column to be moved and click the up or down arrows. To add a column. Click the arrow pointing to the left. 5. 4.

7. Click on the arrow that is pointing to the right.Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips The column names to the left are the columns now associated with the requisition. <Save> 7 6 63 . To delete a column. 6. highlight the line from the column.

Make sure that the “User-specific” and “Default setting” boxes are checked. In the “Save layout” field. 64 . <Enter> 8 9 You will receive a message that the layout was saved. 9. enter a title and name for the layout.Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips 8.

65 .Materials Management Process-The Purchase Requisition Chapter 5 – Timesaving Tips The screen below shows the added “Total value” column.

Materials Management Process -The Purchase Requisition Chapter 6 Creating a Purchase Requisition 66 .

Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition What is the Benefit to using a Purchase Requisition? A purchase requisition (PR) is a Materials Management document created in AASIS to start the process of fulfilling the need for goods and services. If there is not enough budget available to cover the amount of a purchase requisition or purchase order. Let’s create a purchase requisition for the xerographic paper using: Transaction ME51N 67 . The Department of Finance and Administration (DFA) recommends using the purchase requisition because in most cases budget is committed based on the estimated cost of the goods or services when the requisition is saved. you will receive a system message that says “budget exceeded”. They need a four week delivery on the paper. You have received a paper request for 100 reams of xerographic paper. It is to be delivered to DHS Independence County. The system does a “budget availability check” when a requisition or purchase order is saved. Scenario: You are a State employee working in the purchasing department of the Department of Human Services.

1 You may enter instructions or specifications in the “Header note” text field. 1. Open the Item overview section. 2 68 . 2.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition Leave the default document type (Req to PO) since this purchase requisition will be referenced by a subsequent purchase order. The source determination box is not being used by AASIS at this time. Open the Header section.

3. 3 69 . Enter “K” in the “A” column which will require you to enter a cost center on the Account Assignment tab in the item details section for this line item.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition Remember from Chapter 2 that the “account assignment category” designates which cost objects may be used when creating the purchase requisition. It also determines the layout of the Account Assignment tab in the item details section.

Either of these methods will restrict the hit list to those materials that have been set up for purchasing use. 70 .or Select the Plant material by description tab. For best results when searching for materials to be purchased: • • • • Select the Material by material type tab.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition Searching for a Material Enter the material number or click on the dropdown to perform a material search. . Enter 9999 as the plant. Enter GDSV as the material type. There are different search criteria that can be selected.

or if the word is frequently misspelled. use only the portion of the noun that applies to both the singular and plural. o Wildcard before the search term will return materials that end with the search term. o Wildcard before and after the search term will return materials that include the search term anywhere in the description. o Wildcard after the search term will return materials that begin with the search term. enter only the portion of the word of which you are certain. and use wildcards (*) as described above. o Separate multiple search terms with wildcards. The search string must be entered exactly as it appears in the description. including spaces and punctuation. <Enter> 4 71 . • 4. • Use the singular form of nouns. Enter your search criteria in the “Material description” field. If you are unsure of the correct spelling. When searching for a material. remember to: • Use wildcards (*) properly. however. if the noun changes form when it becomes plural.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition Multiple attempts with different search terms may be needed before you can be certain the material does not exist in the system.

Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition 5. <Enter> 5 72 . Highlight the material you need.

Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition 6. 10. Enter the delivery date. you will receive a warning message asking you if delivery can be made on that date. 6 7 8 9 10 11 73 . Enter the requisitioner (the person or place that requested the goods and/or services). 8. Type the date or use the calendar by clicking the dropdown. Enter the quantity required 7. 9. Enter the Tracking number (you can search for requisitions in some MM reports by tracking number). If the delivery date is less than two weeks from the date of the PO or the delivery date is a holiday. (PGr). That is the buyer who will be creating the purchase order. 11. Enter plant “9999” or an applicable plant number. Enter the purchasing group.

This is not a required field on the requisition. If the vendor number is unknown. you may perform a vendor search from this field. Click on the dropdown icon to begin the vendor search. Account group’s unique numeric ranges categorize vendor master records. 12 74 . 12.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition Searching for a Vendor Desired Vendor . ASC recommends that you search for the vendor by the “Vendor Purchasing” criterion so only vendors that can be entered in the purchase order will be available for selection.The number of the vendor from whom you would like to purchase the item(s) requested.

Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition 13. Choose “Vendors: Purchasing” 13 to view the search options. Enter the purchasing organization (your business area). 16. the vendor is Interoffice Supply. This will limit the search to the vendors that can be used by your agency. Example. Click on the “dropdown” icon 14. Type *Inter* in the “Name” field. <Enter> 16 15 75 . type in a portion of the vendor name surrounded by (*). Using the wildcards as in the material search. 14 15.

Highlight the vendor. Enter the purchasing organization. <Enter> 18 76 .Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition 17. <Enter> 17 18.

Budget will be committed based on the “budget quad” derived from the cost object. Go to the Delivery Address tab. (in this case the cost center) was entered. If other account assignment categories are chosen. The system will also give you a message to go to the Delivery Address tab next to enter your delivery address. There is no budget committed. fund. If the account assignment category “U” – unknown is used. functional area and funds center (derived from the cost center). 19. click on the “repeat” icon. 19 77 . the appropriate cost object fields will be open for completion. business area. commitment item (derived from the G/L account) and “Funds Reservation” fields are populated. If the purchase requisition contains multiple items going to the same cost center. the account assignment tab does not appear.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition The Account Assignment Tab The account assignment tab shows the cost object fields depending upon the account assignment category chosen. and when the enter key is hit. the general ledger account number (which is derived by the material/material group).

Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition 20. Click on the “dropdown” icon to choose the delivery address. <Enter> 21 22 78 . region. Type the purchasing organization in the “Search Term 1” field. City. sort field. 22. name. 20 21. Go to the Country. Street tab.

79 . <Enter> The delivery address number will populate on the delivery address tab for the selected line item on the purchase requisition. The delivery address is the locations that taxes will be calculated.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition 23. Highlight the appropriate delivery address from the list of addresses. <Enter> 23 The delivery address will populate on the delivery address tab for the selected line item on the purchase requisition.

24 25 The Source of supply tab is another option for choosing a vendor. 25. A price is required for this line item and must be entered in the “Valuation price” field. After you have completed and saved the requisition you can go into ME52N and change the vendor information to the vendor location. You can set the “PO price” field as a default. 24.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition If the goods are to be picked up at the vendor’s location. Enter your agency’s address number in the “address” field. 80 . Click on the Text Tab. no budget is committed for the tax amount. Go to the Source of supply tab. Go to the Valuation tab. You may enter the agreement (contract) number or select assign source of supply to obtain the vendor. Note: Taxes are not calculated on the PR. the price will not populate in the purchase order. therefore. you will not be able to enter the vendor number in the “vendor” field from this transaction. If you choose “Do not adopt”. This option is most often used when the agency has a specific contract with the vendor.

Data entered on the requisition can be checked by clicking on the “check” icon. <Save> 26 You will receive a document number. Notes to the buyer may be entered to give the buyer or purchasing agent additional information about the item. This checks to see if any required information has been omitted. Notes to buyers will not print on follow-up documents. a message is displayed at the bottom of the screen – “No messages issued during check”. If the purchase requisition has no errors. 26.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition From the Text tab. 81 . you can make changes to the material master text and enter any additional details for the vendor.

1. 2 3 82 .Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition How Do I Attach A Document To A Purchase Requisition? You can attach a document while you are creating the requisition or you can attach a document using the change transaction (ME52N) after the requisition is saved. 3. Click on the “Services for Objects” icon. Click on the “Create” icon. Select “Create Attachment”. 1 2.

Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition 4. Find the document or file that you wish to attach and click the “Open” icon. If you attach the document during the creation of the purchase requisition you will continue to create the requisition and receive a purchase requisition number. 83 . 4 You will receive this message at the bottom of the screen.

Enter the document number you with to view.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition How Do I Retrieve The Attached Document? Go to transaction ME52N Change Requisition or ME53N Display Requisition. Click the “Other requisition” icon. <Enter> 84 .

Click on the “Services for Objects” icon.Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition 5. Click on the “Attachment list” icon. 5 6. 85 . 6 Double click on the attachment.

Materials Management Process-The Purchase Requisition Chapter 6 – Creating a Purchase Requisition 86 .

Materials Management Process -The Purchase Requisition Chapter 7 Viewing the Purchase Requisition 87 .

Display a Purchase Requisition – Transaction ME53N Click on the “Other requisition” icon display.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition Let’s display a purchase requisition document and look at the different fields. to type in the document you wish to 88 .

Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition Click the “Other document” icon. Header Item Overview Item Detail You can close or open each section by clicking on the “Collapse/Expand” icons. There are three sections to the Purchase Requisition. HEADER ITEM OVERVIEW ITEM DETAILS 89 .

Document types were discussed in Chapter two. you will use the default document type Req. For a requisition that is to be used in creating a purchase order. The drop down shows other options such as Req. to PO.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition About the Header: The first field selection on the header is the document type. 90 . Req. to OA which is used if the PR will be referenced by an Outline Agreement. to Prof Scv PO which is used if the PR will be referenced by a Purchase Order for professional services or Req. to Prof Svc OA which is used if the PR will be referenced by an Outline Agreement for professional services.

you can review the “Release group”. You will not see the Release strategy tab until the requisition has been saved. Releasing the purchase requisition will be discussed in detail in a later chapter. The “Line editor” allows you to search for and replace text strings. The “SAPscript editor” allows you to display voluminous text.. The checkmark in the “Stat.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition Entering a header note is optional when creating a purchase requisition. 91 . You can enter any necessary information in the text box on the right.. “Release strategy” and the “Release indicator”. The header note does not copy over to the purchase order. It can be used to notify the buyer of special needs or requirements for the material or service.” (status) column means the purchase requisition has been approved and is ready for further processing. The text typed in this box pertains to the requisition as a whole. The “Continuous text” allows additional text selections to be entered. Once the document has been approved.

Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition About the Item Overview: Account Assignment Category. There are search options that we will go through in a later chapter. 92 . unit of measure and the material group from the material master record.designates which cost objects will be used. Material – In the “material” field you will enter the number assigned to the good or service to be procured. It also determines the layout of the Account Assignment tab in the item details section. The material number will derive the short text.

Unit of Measure – Any established amount or quantity (such as box.) adopted as a standard measurement for other amounts or quantities of the same kind. You must verify that this unit of measure is correct before saving the requisition. each. ZLS (lump sum) is used where the quantity represents the total dollar value of the service being requested and the net unit price of the item should be $1.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition Quantity – is the amount of the material requested. Delivery Date – Anticipated date of delivery (NOTE: This is used in the controlling module as the posting (debit) date of the commitment. 93 . ream.00. The unit of measure is derived from the material master record. case. NOTE: When procuring a service. etc.) If the delivery date is under two weeks of the date of the PO or the delivery date is a holiday you will receive a warning message asking you if delivery can be made on that date.

1300 -. Entry in this field can be anything designated by the agency’s policy.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition Plant – code used for storage locations within the State. 9999 – Reference plant – standard location used within the system by all purchasing organizations.Physical storage location used by ASH . Requisitioner – The value entered into this field is used for internal tracking to verify who requested the goods or service. Purchasing Group – a purchasing group is a centralized procurement group or individual Agency/State Procurement Specialist. numeric or alphanumeric characters. 94 . responsible for the requested purchase.Benton 1350 – Physical storage location used by Arkansas State Hospital. This field accepts alpha. In some agencies this person is known as the buyer. 1000 – Physical storage location used by the Department of Human Services.

AASIS was designed to have the purchasing organization number the same as the business area number for end user convenience. you may perform a vendor search from this field. This field accepts alpha. This is not a required field on the requisition. numeric or alpha-numeric characters. Purchasing Organization – defines a specific group of people responsible for the purchase. If the vendor number is unknown. 95 .Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition Tracking number – The value entered into this field is used for tracking purposes. Desired Vendor . Entry in this field can be anything designated by your agency’s policy. You can narrow your search in MM reports by tracking number.The number of the vendor you would like included in the bid process. Account groups with unique numeric ranges categorize vendor master records. ASC recommends you search for the vendor by the “Vendor Purchasing” criterion so only vendors that can be entered in the purchase order will be available for selection.

short text and material group. Each tab of the item details has information pertaining to the selected line item. delivery date. date and release date. quantity ordered. The arrows next to the item description allow you to view the details of each line item. open quantity. Material Data tab: From this tab you can view the material number. 96 . req. Quantities/dates tab: You can view the quantity.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition About the Item Details: This section of the purchase requisition shows details of each line item. This information was derived from the material master record.

For account assignment category “Blank”. Remember if you need to change the budget quad after the purchase requisition has been saved. funds center and functional area are derived from the cost center or non-statistical WBS element.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition Valuation tab: The “valuation price” is a required field. 97 . funds center and functional area are derived from the plant. For account assignment category of (A) Asset. Account assignment tab: This tab is where you will enter the cost center or other account assignment information according to the account assignment category selected in the “Item overview” section of the requisition for each line item. fund. the business area. You can set the option for the price on the requisition to populate in the PO once referenced. you must delete the line and reenter with the correct assignment information. For other account assignment categories. fund center and functional area are populated from the asset mater. the fund. the business area. fund.

vendor” field: If you entered the vendor number on the Line Item section of the requisition it will also populate on this tab. you will have to enter the asset number stored on the asset class associated with the asset.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition A General Ledger (G/L) account is required on the PR when the account assignment is a cost center (K). internal order (F). or WBS element (P). AASIS does not permit a G/L account or other financial elements when account assignment is unknown (U). AASIS is configured to “derive” the suggested GL account based upon the valuation class entered on the material master. You could also enter the vendor number directly on this tab instead of on the Line Item section. 98 . For account category of A (Asset). Source of Supply tab: “Des.

99 . Record” number is created in the system once an agency buys a material or service from a particular vendor. “Assign source of supply” button. the “Fixed vendor” field and the “Info record” field: An “info. You can click on the “Assign source of supply” to select a vendor.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition “Agreement” field: If your agency has an outline agreement set up for a particular good or service you can type that number in the field to reference that outline agreement.

Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition You will receive a list of vendors that have supplied the goods or services in the past for the requested material on the requisition. In the example below a purchase order was created using this purchase requisition. Once you are in the purchase order you can drill down to the goods receipt and the invoice receipt. When the “assign source” button is clicked a “green light” will indicate that the vendor was selected. Status tab: This tab will show you the history of the requisition. You can check the price we paid per vendor. You can drill down to the purchase order by double clicking on the purchase order number. 100 . The goods receipt and the invoice receipt were created referencing the purchase order.

the requisitioner.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition Contact person tab: This tab will display who created the requisition. add or delete information from this defaulted text. This text will not print on the purchase order. Changing information will not change the material master record. This tab will also display a date on the requisition showing if any changes were made. Texts tab: The Material Master Text will default from the material master record. The Notes To Buyer is for additional information to be told to the person creating the purchase order needs to know regarding the order. You can change. The information will be changed only on the purchase order for that line. tracking number and purchasing group number. 101 .

Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition Delivery address tab: This tab displays the delivery address. enter the vendor number in the “vendor” field. How Do I View the Follow-On Requisition Documents? You can drill down to view the postings in transaction ME53N. 102 . We can view the postings from the requisition we entered and see how they affect the various modules of AASIS. If the goods are to be picked up at the vendor’s location.

103 .Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition Enter the number of the purchase requisition you wish to view. <Enter> Go to Environment>AC commitment documents.

Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition A list of documents displays. How Do I View the FM Document? Double-click the Funds Management Document to continue. 104 .

Information contained in this document also includes the currency. year. funds center and commitment item. Item number.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition The posting to funds management recorded a purchase requisition commitment to the fund. <Back> How Do I View the Controlling Document? Double-click the Controlling Document to continue: 105 . and amount type. ledger. FM posting date.

Note: The cost element is the same as the GL code. item number. cost element number. <Back> 106 . functional area and fund. cost center.Materials Management Process-The Purchase Requisition Chapter 7 – Viewing The Purchase Requisition The purchase requisition post as a commitment in controlling. name. The controlling document displays the reference document number. fiscal year. value.

Materials Management Process -The Purchase Requisition Chapter 8 Selecting Approvers 107 .

1 108 . Workflow has been configured to alert users when they have purchase documents pending release. the purchase requisition may be processed into a Request for Quotation (RFQ) or Request for Proposal (RFP). Many requisitions get dropped at this point in the process. If multiple releases are required. Once the purchase requisition is approved it can be referenced by follow on documents. it commits budget. the system automatically notifies the user with the next level of approval needed to release the document. This is an important step in the process. once the first release (AG) is completed. 1. Remember when the purchase requisition is saved. the system notifies the approver and automatically takes the approver into the AASIS release transaction to execute the release for the designated document. Click the “Inbox” icon. Once the approvers are chosen. You will receive the pop-up box below requesting that you select approvers for your purchase requisition. the system sends a message that you need to select approvers. When the user creates and saves a purchase requisition. or directly into a Purchase Order (PO) or Outline Agreement (OA).Materials Management Process-The Purchase Requisition Chapter 8 – Selecting Approvers Approval/Release Process The purchase requisition must be approved (released) before follow on actions can occur. What Is Workflow? In the Materials Management module. Upon approval. How Do I Choose Approvers? You created a requisition and received a number. Exit the document.

Materials Management Process-The Purchase Requisition Chapter 8 – Selecting Approvers 2. 2 3. Click on the blue box to the left of the word “workflow”. Double-click on the requisition that you wish to send for approval. 3 109 .

5 4 6. The names of the assigned approvers will be listed. Check one or multiple boxes. When you click “DONE” the purchase requisition will be sent to the approver’s inbox. 6 110 . When the first person approves the requisition it will no longer be in the other approver’s workflow inboxes. Click “AUTOSEQUENCE” to continue. The system will display the approvers that you selected. 5.Materials Management Process-The Purchase Requisition Chapter 8 – Selecting Approvers 4.

1 2. Click on “Inbox”.Materials Management Process-The Purchase Requisition Chapter 8 – Selecting Approvers 1. 2 111 . You can also enter workflow by clicking on the “SAP Business Workplace” icon from the AASIS MENU screen.

4 112 . Now you can continue to select approvers.Materials Management Process-The Purchase Requisition Chapter 8 – Selecting Approvers 3. Click on the box to the left of “Workflow” 3 4.

Materials Management Process -The Purchase Requisition Chapter 9 Deleting and Closing Purchase Requisitions 113 .

All open commitments move into the expense column after the invoice is paid via the payment program and FM is subsequently updated. purchase orders. The commitment is relieved on the purchase order and transferred to the Logistics Invoice when the MIRO transaction is entered. 114 . the commitment is relieved from the purchase requisition and picked up by the purchase order. funds reservations and unpaid vendor invoices. A purchase order line item continues to be a commitment even after the entry of the MIGO (Goods Receipt document). The Actual Budget report will reveal commitments and expenses to the budget. purchase orders and vendor invoices): • Actual Budget Report – Y_DEV_80000046 • The Open Commitment Item Report .Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions How Do Purchase Requisitions Remain Open and Continue to Commit Budget? Entering a purchase requisition into AASIS causes a commitment to an agency’s budget. They are: • List Display of Purchase Requisitions – Transaction ME5A • List Display of Open Requisitions – Transaction ZOPENREQ Actual Budget Report -Transaction Y_DEV_80000046 Menu Path: Special Transactions and Reports-State of Arkansas>Financial Accounting>Funds Management>Reporting>Budget/Actual>Actual Budget.ZCMT There are two reports you can run to display your open requisitions. If the purchase order referencing a purchase requisition adds up to a quantity less than that on the purchase requisition. These commitments can include incomplete purchase requisitions. There are two reports you can run to view open commitments (purchase requisitions. then the purchase requisition will remain open and continue to commit budget for the quantity that has not been converted to a PO. When you convert the requisition to a purchase order.

You may enter the customer number for your agency here. Enter the fund. (You must enter either a fund or funds center. Classic drilldown report selection enables you to export the report to an Excel spreadsheet. You may change this if you want to view a different period or range. The “x’s” stand for your business area. Period 0 captures original budget loads and carry forward activities. but budgeted amounts are entered by fiscal year. Enter the current fiscal year and periods 1 to 16 will default. <Execute > 1 2 3 4 5 6 7 115 . 7. “Agency from/CustFund” is an optional field. 4. 5.) 3. Enter a commitment item if desired.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Selecting The Report 1.) 2. you will see a budgeted amount for the entire fiscal year and the current period commitments and blocks. Be sure that the “Year commitment item” equals the fiscal year selection. Enter the funds center. You may also select the graphical report option for a different view. (This is optional if you entered a fund. Change this to periods 0 to 16 to select budget for the entire year. NOTE: Commitments and blocks are entered by period based on the posting date in the document. When a single period is selected. The number will always be 998xxxx00. 6.

click the right arrow to view the next page.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Viewing the Report 8. 10 9 8 116 . Click the plus signs or the “Expand” icon to expand the report. If the entire report is not displayed. 9. 10. Budgets. commitments and expenditures and available budget are displayed.

The difference between the reduction and the original amount is the amount still committing budget. 117 . select the amount for which you want to view detail.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Actual Budget Report Drill-Down To drill down to line items in the budget report. You can view the original amount of the document and any reduction that has taken place. there is not an open commitment. The line items making up the amount will be displayed. If the original amount and the reduction amount match. What Does the Line Items By Document Number Screen Show You? Looking at the “Value Type Text” field will show you what type of documents are consuming budget. Select Extras>Line Items from the blue menu bar. When you see that the reduction amount is less than the original amount further research should take place.

This screen shows you the Quantities/dates tab. The requisition was created for 1 each. There was a quantity ordered of 1 which leaves an open quantity of 0. This purchase order has now picked up the commitment from the requisition. 118 .Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Actual Budget Report Further Drill Down You can drill down to the actual document by double clicking on the document number you wish to view. This purchase requisition is no longer committing budget. The requisition was referenced into the purchase order that is listed on the Status tab.

Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Open Commitment Items – Transaction ZCMT Menu Path: Special Transactions & Reports (State of Arkansas)>Financial Accounting>Funds Management>Reporting>Open Commitment Item Report You can use this report to view commitment line items for the budget. 119 .

Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Selecting The Report 1. Enter the Fiscal Year. 2. Enter the Fund. 3. Enter the Cost Center. Make any other desired selections to narrow down the report. <Execute>

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Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Viewing the Report The report displays open commitment line items with cost object information. The total amount of outstanding commitments is equal to the commitment column on the Budget Report (Y_DEV_80000046). NOTE: You cannot drill down into the document from this report. Commitment Balances The balances of outstanding commitments by fund/funds center/commitment item for MM related documents and FI invoices are equal to the commitment balance on the Y_DEV_80000046 report.

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Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions List Display of Purchase Requisitions – Transaction ME5A Menu Path: Logistics>Materials Management>Purchasing>Purchase Requisition>List Displays>General. The “List Display of Purchase Requisitions” Report will display a list of all open requisitions. Account assignment information is not available on the report; however, this can be viewed by the drill down option.

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Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Selecting the Report 1. Narrow your search. In this example we are pulling up all open requisitions created by a particular buyer (purchasing group). 2. The default view in the “Scope of List” is “ALV” (ALV grid control). The “ALV” (ALV grid control) view makes it much easier to download into an Excel spreadsheet. From the “ALV” view you can also change the layout of the report. For example, you can add a column so you can view funding information. Once you finish limiting your search, scroll down to the bottom of the screen for additional selection criteria.

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Continue to narrow your search as needed. 4 5. the cost center was entered. 3 4.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Selecting the Report (Continued) 3. Click the arrow next to the “Purchase Requisition” folder to open. In this example. 5 124 . Click the “dynamic selections” icon to narrow the report by purchasing organization (Business Area).

Type in the purchase organization. 8 125 . Click on it to highlight and click the black arrow. Click enter on the keyboard. 6 7. The “dynamic selection” icon <Execute> now shows 1 active. 7 8.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Selecting the Report (Continued) 6. Organization” (purchasing organization). Scroll down to “Purch. The “Purchase Organization” (purchasing organization) field appears on the right side of your screen. NOTE: You can use any selection on the list to narrow your search.

and if any quantity has been ordered against a particular purchase requisition.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Viewing the Report The List Display of Purchase Requisitions Report gives a list of all open lines meeting your search criteria. The Ordered column shows any orders that have been placed from the quantity requested. The Quantity column shows the quantity requested on the purchase requisition 10. 11 126 . The report will list the quantity requested on each purchase requisition. 9. Double-click on the line item that you wish to view. 9 10 List Display of Purchase Requisitions Drill Down 11.

quantity ordered and the open (not yet received) quantity. and the quantity ordered. This will show you the quantity requested. Next. click on the Status tab. You can drill down further to the purchase order by double clicking on the Purchase Order number. 127 .Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Once you are in the purchase requisition. click on the Quantities/dates tab. The Status tab shows the PO that was created and released.

however. Displayed in the report are the Fund. Funds Center and Commitment Item.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Report For Open Purchase Requisitions – Transaction ZOPENREQ Menu Path: Special Transactions & Reports (State of Arkansas)>Materials Management>Purchasing>ZOPENREQ. This custom report provides users with account assignment information not displayed in ME5A. it does not have drill down capability. 128 .

enter the purchasing group number. Leave the “Open only” box checked. Narrow your search. 2. In this example. Scroll down to continue. 1 2 129 .Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Selecting the Report 1.

Take the “X”’s out of the “Purchase requisition closed” field and the “Deletion Indicator” field.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions 3. <Execute> 3 5 3 4 130 . 4. The report will not include purchase requisitions that have been closed or deleted. in the “Purchasing organization” field. Enter your Business Area. 5. Take the “N” out of the “Processing status of purchase” field.

Qty requested (quantity requested). PGr (purchasing group number). (currency). funds ctr (funds center). Also displayed are the G/L acct (g/l account). Curr. SNo. (asset sub-number). BA (business area). Scroll to the right to view the rest of the report. which consists of commitment itm (commitment item). Plnt (plant). Requisnr (requisitioner). You can view the Asset. Fund and FA (functional area).req. When you scroll over you can view your account assignment information. (purchase requisition number). TrackingNo (tracking number). Per (per each) column and the Req. WBS element (if on the requisition) and the budget quad. Valn.date (requisition date). cost ctr (cost center). A (account assignment).Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Viewing The Report This report does not have drill-down capability. You can view the Purch. POrg (purchasing organization). price (valuation price). 131 . Un (unit of measure). Order (order number) if applicable.

Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions If a purchase requisition does not have a purchase order attached to it. Deleting Unwanted Requisition Lines You may have created a purchase requisition that is no longer needed. A line can be deleted as long as it hasn’t been converted to a purchase order. or if the purchase order referencing a purchase requisition adds up to a quantity less than that on the purchase requisition. Change Purchase Requisition – Transaction ME52N Menu Path: Logistics>Materials Management>Purchasing>Purchase Requisition>Change This transaction will allow you to delete a purchase requisition line. it is necessary to delete such requisitions in order to free up budget. Use transaction ME52N (change purchase requisition) to delete these lines. In that case. 132 . the purchase requisition will remain open and continue to commit budget.

5. 2. 3. Click on the “Other Requisition” icon. Type in the purchase requisition number you need to delete. .Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions 1. 1 2 3 4. 5 4 133 . Click the “Other document” icon. Select the line/s to be deleted. Click the “delete” icon.

Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Click the “Yes” icon to delete the line. <Save> 134 . There is now a trashcan in the Status column of the requisition line.

2. 1. 1 2 135 . Click to the right of the “trashcan icon” <Save> and click on “Undelete”. Go back into ME52N and bring in the document you wish to restore. NOTE: If you delete a purchase requisition by mistake you can undelete it. Highlight the line you wish to restore.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions Note the message indicating that the purchase requisition was changed.

you will see a system message that the purchase requisition is changed. Also. Change Purchase Requisition – Transaction ME52N Menu Path: Logistics>Materials Management>Purchasing>Purchase Requisition>Change 136 . 3 4 Closing Purchase Requisition Items The following technique explains how to close purchase requisition lines that have been partially cleared by a purchase order. This process is also accomplished using transaction ME52N. You will notice the trashcan is gone from the “Status” field.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions 3. 4.

icon.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions 1. Click on the “Other Requisition” 3. Click the “Other document” icon. 1 2 3 137 . 2. Type in the purchase requisition number you need to close.

some you may need to delete or close. Go to the Quantities/dates tab in the item detail section of the purchase requisition. To close. It shows there is an open quantity of 3.Materials Management Process-The Purchase Requisition Chapter 9 – Deleting and Closing Purchase Requisitions 4. While some of the purchase requisitions are in the process of being completed. 6. <Save> 4 5 6 REMEMBER: You have determined which purchase requisitions are still committing budget. 5. You must close the PR line(s) if a follow-on document is attached. You can delete a purchase requisition line(s) if there is no follow-on document attached to it. 138 . enter a checkmark in the “Closed” box.

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