Module Nine – Central Purchasing Processes

Module Sections

  • Lesson 1 — Converting Requisition to a Purchase Order
  • Lesson 2 — Approval Process
  • Lesson 3 — Cancel or Close/Open Purchase Order/Requisition
  • Lesson 4 — Change Orders
  • Lesson 5 — Clauses
  • Lesson 6 — Buyer Codes
  • Lesson 7 — Discount Codes
  • Lesson 8 — FOB
  • Lesson 9 — PO Class
  • Lesson 10 — Unit of Measure
  • Lesson 11 — Cancel Reasons
  • Lesson 12 — Ship to Codes
  • Lesson 13 — Create & Maintain Vendors (Person/Non-Person)
  • Lesson 14 — Vendor Types
  • Lesson 15 — Vendor ID, Name & Address Changes
  • Lesson 16 – Purchase Order/Change Order Print Process
  • Appendix A: — Purchasing Query Forms
  • Appendix B: — Purchasing Data Entry Standards
  • Appendix C: — Creating & Changing Vendor Codes Procedure

Page 1

LESSON 1 – CONVERTING REQUISITION TO A PURCHASE ORDER

Step 1: Purchase Order Assignment Form [FPAPOAS] (revised 01/22/04)

This form is necessary to assign a purchase order number to a requisition. All requisitions will be automatically routed to a campus buyer code. One person at a time [at each campus] will function as the “Campus Buyer”. The main responsibility of the campus buyer will be to assign purchase order numbers to requisitions. The same person may also have the responsibility of reviewing, completing and approving purchase orders.

  1. The campus buyer will log onto Banner and access the Purchase order assignment form [FPAPOAS]
  2. Enter their campus buyer code (UNH, KSC, or PSC)
  3. Perform next block
  4. A listing of completed and approved requisitions will be displayed. Use the scroll bar to view all requisitions or “fetch next set” from the query menu, if necessary.
  5. Requisitions can be reviewed prior to assigning the purchase order number by choosing query requisition from the options menu.
  6. At UNH & PSC - Assign the same number as the requisition for the purchase order, except use “P” as the first character instead of “R”; at KSC use “NEXT” for a system generated purchase order number
  7. Prior to February 3, 2004, at UNH, OSR will enter subcontract requisitions without an “R” and begin with “ZZZ”. In this case, still assign a “P” as the first character.
  8. Beginning February 3, 2004, OSR will enter subcontract requisitions using one “Z”, 2-digit fiscal year and then a sequential number (ex. Z040001). In this case, still assign a “P” as the first character.
  9. When all PO#’s are assigned, choose save
  1. Print the screen(s) to have a listing of purchase order numbers which will be needed to input the purchase order number in FPAPURR
  2. Exit the form

Note: A query can be entered after entering the campus buyer code and performing a next block to query for a specific requisition number.


Step 2:Purchase Order Form [FPAPURR]

Block #1 - Purchase Order(revised 11/20/01) – Enter purchase order number and perform next block. (Refer to the print screen(s) from FPAPOAS for the purchase order number)

Block #2 - Document Information (revised 11/20/01)

All information including text will populate from the requisition. The buyer can choose to review, make changes if necessary, and complete the purchase order or leave the purchase order “in process”. Always change the buyer code to a specific buyer code before completing or leaving in process.

Fields / What you do…
Purchase Order Number / Number assigned will be displayed
Blanket Order / Will not be used
Type / Choose “Regular” for one time purchase/payment or “Standing” for multiple purchases/payments
Order Date / Defaults to today’s date. Can be changed. (For Subcontract PO’s, change to the start date of the contract)
Transaction Date / Defaults to today’s date. Can be changed.
In Suspense / This will be checked if additional action is needed to complete the document. Display-only box.
Delivery Date / Defaults from the requisition. Can be changed
Comments / Defaults from the requisition. Data will not print on the purchase order
  1. If “Regular” or “Standing”, choose the appropriate option from the purchase order “type” pull down menu
  2. If “Bid”, proceed to the internal campus bid process (not using banner bid process)
  3. If bid or contract number, use document text so it will print on the purchase order

Document Text / Check mark will be displayed if text exists on the PO. Display-only box. To view or add document text, choose “document text” from the options menu [FOAPOXT). Next block to view or add text. Save and exit.
Commodity Total / Defaults from the requisition. Display only.
Accounting Total / Defaults from the requisition. Display only.
PO Created from Req / Check indicates yes. Cannot be changed
Req Document Text / Pull down menu. Default is “Copy document text” if text exits or “None” if text does not exit. Choosing ignore will cause the text to be removed from the purchase order. If copy text is chosen, you can still indicate not to print in FOAPOXT.
Buyer / Defaults to the campus buyer code. Change buyer code now or after reviewing the entire document. Must always change to a specific buyer code.
BO Term Date / Will not be used
NSF Checking / Check to perform NSF checking at data entry time
Deferred Editing / Check to defer NSF edit of accounting records
PO Copied From / Indicates if this purchase order was copied from an existing purchase order

*Add Clause or Perform Next block to proceed to Requester/Delivery


(revised 11/20/01)

Adding Clauses: Clauses will generally be used as document text rather than item text and can be added at any time prior to completing the purchase order.

  1. Access document text from the options menu
  2. Enter code in the “Modify Clause” field or click the flashlight to access FOICLAU to search for a clause code. Double-click to bring clause code back to the text form.
  3. After choosing a clause code, must choose “insert” from the record menu to pull in the pre-defined text associated with the clause.
  4. Save and exit


Block #3 – Requestor/Delivery (revised 11/20/01)

The fields in the header (grayed out) will be defaulted from the values entered in the document information section and cannot be changed. Return to document information section if changes need to be made.

Fields / What you do….
Requestor, COA, Organization, Email, Phone, Fax / Information about the user who entered the requisition. Defaults from the requisition. Do not change.
Ship To / Defaults from the requisition. Change if necessary.
Attention To / Defaults from the requisition. Required field. Change if necessary. Should be the name of the person or department the goods or services are for. May be different than the requestor.

*Perform Next block to proceed to Vendor

Block #4 – Vendor (revised 11/20/01)

The fields in the header (grayed out) will be defaulted from the values entered in the document information section and cannot be changed. Return to document information if changes need to be made.

Fields / What you do….
Vendor / Defaults from the requisition. Verify vendor is accurate for the purchase request. Can be changed. The vendor may be blank if the vendor id is not established, to indicate a bid request.
Address Code/Seq# / Defaults from the requisition. Verify address is accurate for the purchase request. Can be changed.
Contact / Defaults from the requisition. Change if necessary. This does not print on the purchase order. Use document text if contact needs to print on the purchase order.
Discount / Required. Defaults from the vendor, but could have been changed on the requisition. Change the default if necessary. Accounts Payable will issue payment based on the discount listed on a purchase order or use the payment terms on the invoice, which ever is in the best interest of the University.
FOB / Required. Enter the appropriate FOB code or use the flashlight to search.
Tax Group / Will not be used
Disbursing Agent / Will not be used
Class Code / Required. Enter the appropriate PO Class code or use the flashlight to search. Code further identifies the type of purchase request.
Carrier / Will not be used
Currency / Will not be used

*Perform Next block to proceed to Commodity/Accounting

Block #4 – Commodity/Accounting (Commodity/Description Items) (revised 11/20/01)

The fields in the header (grayed out) will be defaulted from the values entered in the document information section and cannot be changed. Return to document information if changes need to be made.

Fields / What you do….
Doc Acctg / Do not change
Comm / Will not be used. Do not click flashlight – no values.
Desc / Defaults from the requisition. Review description information for accuracy. Can be changed. Do not click flashlight – no values. Associated with commodity.
Item Text / Check mark will be displayed if texts exists. Defaults from the requisition. Display-only box. Item text should be used to elaborate on a specific item when needed. To view or add item text, choose “item text” from the options menu to access FOAPOXT. In FOAPOXT, perform next block to view or add text. Save and exit.
Add commodity / Will not be used
Distribute / Do not change
Item / Display only. Indicates the item selected and total number of lines
U/M / Defaults from the requisition. Can be changed. Enter a new code or use flashlight to search for new code.
Tax Grp / Will not be used
Quantity / Defaults from the requisition. Can be changed.
Unit Price / Defaults from the requisition. Can be changed. The Ext Cost fields will be defaulted from the requisition. If changes were made to the Quantity or Unit Price, tab through the fields to re-calculate.
Disc / Defaults from the requisition. If the Discount field in the vendor section has a code indicating a discount, the discount amount is populated.
Addtl / Defaults from the requisition. Use for additional charges such as shipping cost or credits (-$1,000). Item text should be used to describe the purpose of the additional charges/credits, if any.
Tax / Will not be used
Comm Line Total / Display only. Total amount of the commodity line.
Doc comm. Total / Display only. Total amount of all commodity lines.

*Perform Next block to proceed to FOAPAL

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Block #5 – Commodity/Accounting (FOAPAL) (revised 11/20/01)

Fields / What you do….
FOAPAL Section / Verify the information is appropriate for the type of purchase request, particularly the account code. Can be changed. Enter new code or use flashlight to search for new code. If an additional FOAPAL line needs to be added, choose “next” from the record menu and complete FOAPAL information and amounts. The number of FOAPAL records will be indicated. (Ex. “1 of 1” or “1 of 5”)
Remaining Comm Amt / Verify the amount is 0.00. If not, current FOAPAL amounts need to be adjusted. If changes are made, may not update immediately until a next block is performed
USD Section / Verify amounts are calculated appropriately. If checking the percent box (%) column the number entered will be considered a percent, otherwise leave the box unchecked and the number entered will be a dollar amount.

*Perform Next block to proceed to Balancing/Completion

Block #6 – Balancing/Completion (revised 11/20/01)

Summary information is displayed. All information is display only. If any changes need to be made, you must access the appropriate block.

Complete or Leave in Process

  1. Obtain supporting documentation if necessary prior to completing the purchase order
  2. If the buyer code has not been changed to a specific buyer yet, access the document information block and change.
  3. Complete or leave in process for another buyer to review and complete
  4. If left in process, to go back and complete at a later date, repeat the steps in this lesson by accessing FPAPURR and entering the PO number to be completed.
  5. Access FPIPOHD if PO number is not known – query for completed & approved equal to “N” and any other information to narrow the results

Note:The purchase order will go through the approval queue if necessary once it has been completed. If left in process for review, notify the specific buyer.

Note: Purchase orders cannot be changed after it is completed. Must be disapproved or enter a change order.

Printing Purchase Orders (revised 11/20/01)

Detailed information on the printing process will be provided at a later date.

(revised 11/20/01)

First screen shot on page 16 displays Document text. Notice that the “Item#” field is blank. This indicates that document text option was chosen.

Second screen shot on page 16 displays Item text. Notice that the “Item#” field is not blank. This field will display the item number that the item text will be applied to. If a description was entered before accessing item text, then the “Commodity Desc” field will contain the text entered.

Page 1

LESSON 2 – APPROVAL PROCESS

(revised 11/20/01)

A completed purchase order will route through the approval queue if additional approvals are required. No changes can be made to the document. If changes were needed, the document would need to be disapproved or enter a change order.

Note: If the buyer has appropriate approval levels for the purchase order, approvals may be satisfied when they complete the document – implicit approvals.

For more detailed instructions on approvals, see

  1. Log into Banner
  2. The Approval Notification Form [FOIAINP] will automatically display if user has documents that need their approval
  3. Exit this form
  4. Access the User Approval Form [FOAUAPP]
  5. Enter Banner user id (not buyer code)
  6. Enter a specific document number or next block to view all documents awaiting approval
  7. Summary document information will be displayed and a “Y” in the next approver field indicates if the user is the next approver
  8. Click detail button to review the document; click approve button to approve the document; click disapprove to disapprove the document

Note: The Approval Notification Form will only be displayed at the time of login. Users will need to access the User Approval Form throughout the day see if documents are awaiting approval.

Page 1

LESSON 3 – CANCEL OR CLOSE/OPEN PURCHASE ORDER/REQUISITION

Cancel PO - Prior to posting [FPAPURR](revised 02/05/02)

If the purchase order needs to be cancelled for any reason prior to posting, the campus purchasing office will perform the cancellation by choosing “remove” twice from the record menu within the Purchase Order Form [FPAPURR].

Cancel PO - After posting [FPAPDEL] (revised 02/05/02)

The purchase order may be canceled if it is still open and has not had any activity against it (invoices, change orders, etc). The need to cancel a purchase order in its entirety does not occur frequently. Generally, the wrong vendor was selected or the decision was made to cancel the order entirely. The business unit requesting the cancellation must notify the campus purchasing office to perform this function.

  1. Access the purchase/blanket order cancel form [FPAPDEL]
  2. Enter the purchase order number to be cancelled
  3. Next block (summary information from the purchase order is display only)
  4. Next block to access cancel date block
  5. Today’s date will default as the cancel date
  6. Enter a reason code – optional
  7. Choose “document text” from the options menu to add/review text - optional
  8. Choose “process cancellation” from the options menu
  9. Notify the vendor in writing of the cancellation if the purchase order was sent to the vendor

NOTE: The requisition will be re-opened if the purchase order is cancelled using the above process. If the purchase order was cancelled for the purpose of re-doing the purchase order, then start at Lesson 1 to assign the same requisition another purchase order number. Otherwise, see Module 4 – Lesson 2 Canceling a Requisition. Purchasing should cancel the requisition in this situation to avoid another PO number being assigned.

(revised 10/03/03)

Close a PO Document or Commodity – Use when a purchase order or commodity has been fully/partially liquidated by invoices, but a final payment indicator was not specified. Also use when a PO is no longer needed to relieve any encumbrance or when a commodity line has been added to a PO in error.

  • Closing PO Document – Close all commodity lines and enter the current encumbrance amount for each FOAPAL line
  • Closing PO Commodity - If no invoices have been paid against it, close the commodity line and adjust the FOAPAL by the full commodity amount. Otherwise if the commodity line has had invoices paid against it, close the commodity line and adjust the FOAPAL if there was a remaining balance.

Open a PO Document or Commodity - Use when a purchase order or commodity item has been closed by a final invoice payment. Check Banner/Webi to see the specific commodity/invoice amount, as FGIENCD will show the full amount liquidated (invoice amount plus remaining encumbrance balance). If needed, enter a change order after to increase the PO above the original encumbrance amount.

  • Open PO Document - If the invoice was for the full PO amount, open the commodity lines and enter $0.00 for each FOAPAL line. This will change the status of the PO to open. Otherwise, if the invoice was for a partial amount, the PO can be opened up to the amount that was remaining after the final payment was made.
  • Open PO Commodity – If the commodity line was only partially liquidated by invoices, open the commodity line and adjust the FOAPAL to open for the remaining balance. Otherwise, just open the commodity line.

Close a Requisition Document or Commodity – Generally used if a requisition is assigned a purchase order by item rather than the whole document. A specific item may not need to be ordered and brought forward to the PO and therefore closed at the requisition level (or if REQ contains a zero dollar commodity line).