Post on 29-May-2018
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Project HORIZONERP Implementation Venture
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Requisition Processing
Iftekhar Ahmed Chowdhury
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Why we need requisition ?
Requisition is the communication of a need by the users.
What we need ? Examples
Brick, Sodium silicate, Mortar, Mineral wool, Grinding
media, SteelWire Rope, Slag, Fly ash, Gypsum, Angel, MS
Plate, Shim, Round Bar, Lubricants, Grease,Weldingmaterials, Pipe & Fittings, HSDiesel, Bearings,Fuses,
Cables, Belts, Gear Box, Printer ribbon, Toner Cartridge,
Water purifier, Ceiling fan, Pen drive, Soft drinks, Air
Conditioner, Car, Construction works, Civil works, Electrical
works, Repair works, Transport Charges, Telephonecharges, advertisements etc.
These are materials, spare parts, consumables, stationeries,
fixed assets and services.
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Stock Items
Items like Brick, Sodium silicate, Mortar, Mineral wool,
Grinding media, Steel Wire Rope, Slag, Fly ash, Gypsum,
Angel, MS Plate, Shim, Round Bar, Lubricants, Grease,
W
elding materials, Pipe& Fittings, HSDiesel, Bearings,Fuses,Cables,Belts,Gear Box are:
a. required on a continuous basis
b. procurement needs time
c. needs safeguard
Hence these items are procured, stored and issued for
use as per need under inventory management policy.
Materials, spare parts and consumables
Called Stock Items
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Non-Stock Items
Stationeries and consumables
Called Non-Stock Items
Items like Printer ribbon, Toner Cartridge, Water
purifier, Pen drive, Soft drinks, Car are User based
requirements.
a. required on a continuous basis
b. procurement does not need time
c. Safeguard is not that significant
So these materials are procured asand when the requirement comes
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FA & Services
Fixed assets and Services
Called Jobs
Not storable
These are procured as and when required
Services like Construction works, Civil works,
Electrical works, Repair works, Transport
Charges, Telephone charges, Advertisements, are
directly consumed
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Line Type Coding
Stock Items: Coded as CSThese items are procured, stored and issued for
use under inventory management policy
Non-Stock Items: Coded as CN
These commodities are procured as and when
required
Jobs (Services or Fixed Assets): Coded as CJThese are procured as and when required
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Stock Vs Non Stock
The procedural difference between Stock and Non stock:
a. Stock items is tracked and controlled by warehouse
b. The system will generate Purchase Requisition based
on Reorder point
d. For non-stock items Purchase Requisition is raised by
user departments.
c. Warehouse people may generate Purchase Requisition
based on Reorder point
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ITEM MASTER
What is item master?
* It is a list of Stock and Non-stock Items
* It stores relevant information with regard to items
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Item master is the Central place where item related information is stored
Item Master ContentsItem Master Contents
IdentifiersIdentifiers DescriptionsDescriptions
Item RulesItem RulesCosts and PricesCosts and Prices
Branch/PlantsBranch/Plants
LocationsLocations
ClassificatClassificat
ion Codesion CodesGL ClassGL Class
Weights and
Measures
Weights and
Measures
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What is the relation between requisition and Item master?
TheWarehouse supervisor/ requisitioner selects the Item
from Item master During the process of making requisition.
Description-Screw Driver
Item number-1201101093
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Raising a Requisition for Stock Item
The users will make a paper requisition using the prescribed
form INVENTORY ISSUE REQUISITION and provide to the Warehouse.
TheWarehouse Supervisor will issue the material for use.
Warehouse people may generate Purchase Requisition
through ERP based on Reorder point estimates.
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Raising a Requisition for
Non-stock item or service
- After the Purchase Requisition is raised it automatically
goes to the HORC for approval
- After the Purchase Requisition is approved it automatically
goes to the purchasing department
For ERP Users
- Purchase Request has to be made by user through the
ERP system
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Raising a Requisition for
Non-stock item or service
- After the Purchase Requisition is approved, it will be
submitted to the Admin or Purchase department for
entering into ERP system
For Non-Users of ERP
- Purchase Request has to be made by user manually using
the form PURCHASE REQUISITION (Manual Processing for Non-ERP User)
- After the Purchase Requisition is prepared it needs to be
approved/signed by HORC
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a) Supplier
b) Branch Plant
c) Item
d) Quantity
e) Cost
What is required for making a Purchase requisition?
f) Object Account
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ERP Template Roles
Requisitioner
Head of Responsibility Centre
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Menu For raising Purchase Request
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Enter supplier Purchase dept
Enter requested date
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Select item from torch Enter Qty Enter unit cost Enter account number
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Requisition Approval
Requisition goes for approval based on Approval route
Setup. HORC has different options
Reject the requisition indicating the required changes
to be done using Reject Remarks
Approve the requisition so that it will go to the Purchase dept
for further processing
Check the Budget
Check the requisition before approval/Reject
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Approve Purchase requisition
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Reject Purchase Requisition
Click on Row menu and select Reject
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Additional Controls
In addition to the system control, manual signature is
inputted on PR print
The printed PR is send to Purchase dept for further
processing
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DOS
For suppliers field, you are a internal customer for
Purchasing department. Hence you can use either the
external supplier nor purchasing dept nor any of the
Purchasing officers employee number.
Usually the ship to set as defaults for the Branch/Plant.So use the ship to only if you want the goods to be
shipped to A different location than your own.
If you want to give additional information for the
requisition Use the Pmt. Remark field in the Order header.Or you can use Line or Order attachments for putting
additional information.
Note the order number. Also always click on ok after
filling up the fields in the order detail.
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DONTS
Dont enter other fields in order detail. They will default
from the item master.
Dont enter the object account for a stock item. It is
already set in the system.
In case a item is not attached to a Branch/Plant you
have to contact the Item master administrator - Tanverul
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Purchase Order Approval
The purchase orders go for approval as per the approval limit
Set in the system as per Lafarge purchasing policy.
At the time of approving the purchase order, the approving
authority can check the order, see the quotations, thenegotiations, and the budget.
If any modifications are changes required in the PO, the same
thing can be mentioned in the Reject Remarks field and
then reject the order.
The purchase department does the required changes and
the order goes back for approval to the approving authority.
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Click on the row exit PO entry, entry
Detail to see the original order
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Click on form exit to approve the p o
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Click on row exit to reject the order
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Enter the reject column
With reason
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