Description of the "Procurement Management" Business Process
The functionality is developed to improve the administration and control of the procurement process by all participants, from the initiator to the Head of Division Supplies.
Configuration Setup
Before starting the functionality, the following settings need to be configured:
- Extended configuration of the purchasing module.
- Assignment of roles to users.
- Configuration of approval workflows.
The system provides three roles: Initiator, Manager, and Head of Division Supplies, with configured information display filters and access to specific actions.
Creating a Request
The Initiator creates a document called Procurement Request, filling in the Vendor, Location, and Product fields either with specific codes or default values, with a mandatory description of the item or service, as well as quantity and cost. The request is then sent for approval to the responsible employee.
Approval of the Request
The responsible employee approves the request, after which the request lines are created on the Purch. Request Worksheet Lines page, where procurement department employees work on them, and the initiator can track the progress of the execution process (status, dates of assigning a manager and starting work, vendor).
Manager Assignment
The Head of Division Supplies assigns a Manager who will work on fulfilling the request. After assigning a Manager, the request status is set to "In Progress," and the Manager Assignment Date/Time field is filled.
Processing Request Lines
The assigned Manager processes the request lines, specifying exact product or service codes if default values were used by the initiator, and also indicating the supplier, contract, cost, etc. If the new cost exceeds the Deviation Percentage or if the new line amount is greater than the Deviation Amount specified in the User Settings, an error message will be displayed. If it is not possible to find a supplier with a cost for the item or service that does not exceed the approved cost plus the deviation, the initiator should request a new approved request with a new cost.
Creating Purchase Documents
The assigned Manager creates purchase documents for the selected request lines.
A procurement request can be:
- For purchasing goods, services, or Non-Inventory Items.
- For transferring goods or Non-Inventory Items if they are available in other warehouses.
- For writing off goods to expense or Non-Inventory Items.
The fulfillment of the request can be split into multiple purchase documents for different suppliers.
Closing Purchase Requests
The request can be automatically set to "Closed" after purchasing the planned quantity of the item or service or closed manually.
Actual vs Planned Analysis of Request Execution
The report form allows tracking the history for each request, including the documents created from the request line, the quantity, and the amount. The report can be easily exported to Excel for further processing and analysis.