Investing in Our Future

January 2017

Purchasing Remediation Project Central Purchasing & Enterprise Resource Planning

Training Objectives

After completing this session, you should be able to:

Identify PeopleSoft 9.2 eProcurement functionality related to the

Requisitioner role.

Understand basic features of the Requisition, Workflow, Category

Codes, Items and Catalogs.

Recognize processing differences between Goods and Services.

Recognize a Contract vs. Purchase Order Release (POR).

Access ongoing support resources available to end users after Go

Live (i.e. workshops, job aids, etc.).

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Agenda

SECTION TOPIC

Beginning the Climb Introduction and Project Overview

“What does this mean to me?”

Getting a Better View Requisitioning

Workflow: Confirmation & Approval Routing

Reaching for the Top Category Codes

Items

Catalogs

Special Request

Dispatching & Sourcing

Final Ascent New Processes & Special Topics

We made it! Training and Support

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Be sure to sign the Attendance Roster. You will receive your Requisitioner Guidebook (via e-mail) after completing this training session.

Browser Awareness

Occasionally, end users experience viewing or

functionality issues caused by a Browser. This issue has

increased as more Browsers have been introduced.

1. If you are experiencing functionality difficulties within PeopleSoft

eProcurement you may need to change your Browser.

2. City of Albuquerque Browser Standard: Internet Explorer

3. Other suggested Browsers: Mozilla Firefox or Google Chrome

4. Not sure if it is a functionality issue or user error?

Switch to a different browser and try again.

If you experience the same issue contact the Service Desk for

additional help. 768-2930

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BEGINNING THE CLIMB

The climb is tough, but the view from the top is worth it!

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Introduction – Why?

An assessment completed in 2014 by an independent contractor,

CherryRoad, identified major pain points:

Purchasing processing challenges following the 2009 implementation

Excessive processing times

Data integrity issues

eProcurement Implementation Goals/Objectives:

Standardization of processes Decrease processing times Maximize use of workflows

Eliminate Shadow Systems/spreadsheets

Increase data integrity (encumbrances-better estimates)

Increase visibility of the Purchase Order Life-cycle

Enable Purchasing resources to focus on data analysis & quality control

Optimize business processes by involving all stakeholders

Define acceptable tolerances for PO/POR/Voucher reconciliation

Minimize customizations & non-PeopleSoft interfaces

Make PeopleSoft the system of record for all Purchasing data

Identify necessary interfaces

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Purchasing Remediation Project – Overview

Changes & New Functionality for Purchasing

Remediation:

Electronic Requisitions - ePro, an enhanced requisitioning

module will be used as an entry point for procurements.

Catalogs – Ordering from Inventory and Contracts will be

enhanced through online catalogs.

Approval – Online approvals (using Workflow) are implemented for

procurement transactions.

Receiving – Business Process will be changed for promptly

receiving goods in PeopleSoft.

AP Invoice Processing – Streamlined requirements; invoices will

no longer go to departments. Suppliers must provide PO Numbers

on invoices.

New Interfaces between PeopleSoft and External Systems (i.e.

Transcepta)

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WHAT DOES THIS MEAN TO ME?

It is totally natural to be a little nervous and uncertain

about these major changes.

Remember to be excited, too! It will all be worth it!

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GETTING A BETTER VIEW

“Whether you think you can or think you can’t -

you’re right.” -Henry Ford

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Requisition – Start of the Purchasing Process

The Purchasing Process begins with the Requisition

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Types of Requisition

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CREATE REQUISITION PAGE

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The Create Requisitions page

mimics an online shopping

experience for routine

purchases.

Selections create a requisition

that will route for approval

when submitted.

Navigation: Main Menu > eProcurement > Requisition

CATALOG OPTIONS

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Navigation: Main Menu > eProcurement > Requisition

Use Catalog to order stock items from

the Warehouse (COA_ALL_PURCH1)

or Labatt’s.

Use Web to order from Sandia Office

Supply.

Use Special Requests to order non-

stock items.

CREATE REQUISITION PAGE

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Important Information is located in the Header: 1. Business Unit – Should reflect your Business Unit code. Helps identify department approvers for workflow.

2. Requester – Impacts workflow – Should be a User familiar with the transaction.

3. Origin – This field manages Signature Authority options which are included in approval workflow.

4. Requisition Type – Choose an appropriate Requisition Type. Defaults to ‘DO NOT USE’. You must actively

select the appropriate Requisition Type. You need to have the correct Requisition Type or Purchasing will need

to deny the request.

Requester Name

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REQUISITION FEATURES

Purchase will include “Item” and “Category Codes” which should be verified.

Why is this important? Item and Category Codes track Spend details.

• Detailed Spend information was not available in the past.

• This new transparency to Spend is valuable in planning budgets. The City

can identify high Spend areas where a request for discounts (to help save

money in the future) might be appropriate.

Note: More detail on this will be reviewed in the next section.

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REQUISITION FEATURES

Must include Accounting Line Information on Chartfields1 and

Chartfields2 tabs when submitting a Requisition. Have this information available before starting your Requisition.

Chartfields3 Tab – Only used for

Projects / Grants

Chartfields1 Tab – Must have Location, Quantity, Percent &

GL Unit

Chartfields2 Tab – Must have correct

combination of Account, Fund &

Dept

Not Required for regular purchases:

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REQUISITION FEATURES

Ability to add Line Comments per Item and/or Attachments to each

Requisition. The system gives the following options for you to choose

where you would like your comments to be included and seen: 1. Send to Supplier

2. Show at Receipt

3. Show at Voucher

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REQUISITION FEATURES

At the bottom of the Requisition: Add special requisition instructions in the Requisition Comments

Add Approval Justification comments

Note: The ‘Check Budget’ process has been automated so you will not use this icon.

If the Requisition is complete and ready to route for approvals: Save & submit If the Requisition will be completed later: Save for Later To continue adding more items: Add More Items Note: To Preview Approvals you must ‘Save for Later’ or ‘Save & submit’.

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CONFIRMATION & APPROVAL ROUTING (WORKFLOW)

How will I know if I have a Requisition pending my Approval?

When a requisition is submitted it enters Approval Workflow. If you are

included in the Workflow you will receive an e-mail in your Outlook Inbox

and the Requisition will also be added to your Worklist in PeopleSoft.

Click on the e-mail hyperlink then login to PeopleSoft to access the

Approval function.

Note: Requesters are included in the Approval Workflow. If you are both the

Requisitioner and Requester you will receive a notification. This gives you another

chance to verify that your Requisition submission is accurate. If you have another

role (i.e. Fiscal Manager) you will receive another e-mail notification to

review/approve in that capacity.

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CONFIRMATION & APPROVAL ROUTING (WORKFLOW)

When submitted, Requisitions route electronically for Approvals through

‘Workflow’. Who they route to is controlled by dollar amounts, etc. Requisitioner’s can view the status of Workflow at any time.

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CONFIRMATION & APPROVAL ROUTING (WORKFLOW)

To view the Requisition as a document for your review process:

1. Choose all lines by clicking in the Select All/Deselect All box. 2. Click on View Line Details button. 3. The Requisition is displayed for you to review before you Approve, Deny or Push Back.

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CONFIRMATION & APPROVAL ROUTING (WORKFLOW)

After reviewing the Requisition you can: Pushback

Deny

Approve

Add Ad-Hoc Approvers

Example of Pushback: Only goes back one level. The option appears after the

first approval is completed.

Example of Approved: Example of Denied:

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CONFIRMATION & APPROVAL ROUTING (WORKFLOW)

Do you need someone to review this Requisition that is not in the Workflow?

Use the Ad-Hoc Routing feature:

Use + Sign to insert an Ad-Hoc Approver before you complete your Approval. Note: If you Approve first the + Sign will disappear and cannot use Ad-Hoc feature.

Note: Adding Additional Approvers to Workflow may increase the processing time.

REACHING FOR THE TOP: CATEGORY CODES, ITEMS & CATALOGS

Believe you can and you’re halfway there. - Theodore Roosevelt

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WHAT ARE CATEGORY CODES?

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Category Codes are entered on Procurement Contracts, CROs and POs. They are also attached to Inventory Items.

Category Codes are used for reporting on and controlling the types of goods and services that the City buys.

The City currently uses a small set of very broad, basic codes.

Implementing a new Category Code set provides:

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Easy reporting on Spend by Category -

This helps us negotiate better pricing with suppliers.

Better control on Spend -

Information will be readily available to managers

within PeopleSoft.

Codes will be attached to contracts as well -

Users will only be able to buy within the categories

assigned to a contract.

WHY ARE CATEGORY CODES CHANGING?

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Category Codes for Services will start with a 9. Service Category Codes will be flagged for ‘No Receiving’ (see

the Purchasing Flowchart in your handouts).

Category Codes for Goods will start with anything from

0 to 8. Goods must be received in order to be processed for payment

(see the Purchasing Flowchart in your handouts).

CATEGORY CODES: GOODS VS. SERVICES

The National Institute of Government Purchasing (NIGP)

created a set of Codes to be used as a government

standard.

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Provides much more detail

Increases available codes to 9,000+

5 digit number for example 005-05: First 3 digits represent the general type of product. Example:

005 = Abrasives

Last two digits (-05) provide detail.

Example: ***-05 = ‘Abrasive Equipment and Tools’

EASY to search by Description, no need to memorize codes

Advantages to using these NIGP established codes:

NATIONAL INSTITUTE OF GOVERNMENT PURCHASING

CURRENT STATE OF ITEMS

Currently all items are associated with the Warehouse.

1. Physical goods: Either stocked in Inventory or set-up as a

‘Just-in-Time’ item for ‘as needed’ delivery.

2. Issued, delivered, replenished and managed by Warehouse

staff and supervisory personnel.

3. Each warehouse item is configured with details for

replenishment, physical storage area, Min and Max

quantities, etc.

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FUTURE STATE OF ITEMS

In ePro Items will include new non-inventory items, in

addition to, existing warehouse items.

1. Physical goods AND services will be set-up as Items.

Any good or service that is purchased frequently is a candidate to be set up as an

item and included in an ePro catalog.

2. Items are more granular than Category Codes. Many items can be

attached to one Category Code.

Example: Category Code might be “Drafting and Drawing Pencils, Pens, Leads,

Lead Holders, etc.” The Item might be: “BALLPOINT PEN, FINEPOINT, RED”

3. Non-stock, non-inventory items will be managed by Central

Purchasing.

4. Non-stock items will not be configured with details for replenishment,

physical storage, Min and Max quantities, etc.

5. Non-stock items WILL be assigned to an NIGP Category Code with

units of measure and order quantities.

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Importance of Items and Category Codes in Catalogs

Spend analysis and control is driven by Category Codes and Items

CATALOGS

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When to use a Special Request -

To purchase a Good or Service that is not available

in a Catalog.

To request Contract Amendment or a new Contract.

To request Contract set-up.

To request Item Maintenance or New Items.

To initiate a Bid in SicommNet.

See Requisition Type Matrix in your handouts.

SPECIAL REQUEST

Note: Almost all Requisition Types are created from a Special Request. Only the Internal Catalog and Punch-out Catalog are tied to a Catalog.

DISPATCHING & SOURCING

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Purchase Orders or PORs will be “Auto-Sourced” from Approved

Requisitions with a Supplier.

Purchase Orders from ePro will be pre-approved.

Purchase Orders from ePro will be Dispatched in batches: Departments will not be dispatching individual PORs.

PeopleSoft supports e-mailing Purchase Orders if we have “Order

From” e-mail addresses in the PeopleSoft Vendor/Supplier file.

Suppliers signed up with Transcepta will be configured to dispatch via

EDX (Electronic Data Exchange).

We have a process to ensure that all Dispatched PO files are

actually transmitted to the Supplier.

We have a process to create and transmit duplicate PO’s.

FINAL ASCENT:

NEW PROCESSES

“It ain’t what you don’t know that gets you into trouble.

It’s what you know for sure that just ain’t so.”

- Will Rogers

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PURCHASING BUSINESS PROCESS RE-ENGINEERING

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The Purchasing Remediation Project is implementing extensive

changes in purchasing processes City-wide. The changes will

impact Central Purchasing, Department Buyers, Fiscal Managers,

Accounts Payable and Operations users and Managers.

Fiscal managers and staff have been included in Remediation

Project meetings since its inception and are well informed of the

coming changes.

Non-fiscal managers and staff also need to know the new

processes; the project needs their understanding and support.

NEW – REQUISITION & CRO/POR PROCESSES

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Users must know the funding string, pricing and specifications as part of

completing the requisition. Back up documentation needs to be attached.

The purchase approval is always completed on the electronic requisition.

The use of the term CRO (Contract Release Order) is being

discontinued as it is not generally used outside of the internal City process.

The terms POR (Purchase Order Release) or PO (Purchase Order) will be

used instead.

A Purchase Order Release (formerly CRO) is created through a PeopleSoft

process directly from the approved requisition.

The Purchase Order Release is dispatched from PeopleSoft to the supplier

via email, hard copy or electronically BEFORE the supplier fulfills the order.

A PO is a binding document specifying the goods or services that are being

ordered with the terms and conditions for their delivery and payment. A

valid PO must ONLY be generated from PeopleSoft and will be

electronically signed by the Chief Procurement Officer. Department

substitute forms are NOT VALID and must not be used.

NEW – CHANGE ORDERS & CONTRACT AMENDMENTS

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PO Adjustment Form – No longer used.

Contract Amendment – Use the Contract Amendment Requisition

Type.

Change a Purchase Order – Use the Change Order Functionality

on the Add/Update PO page.

What is a Change Order? A formal notification to the Supplier that

we are changing a Quantity, Amount or Item from a previously placed

order.

A Change Order is not appropriate for A/P Processing or cosmetic

internal changes.

Important Note: PO Change Orders will have Workflow similar to Requisitions.

NEW – SUPPLIERS & RECEIVING PROCESSES

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Supplier

The Supplier must have a valid purchase order document in-hand prior to

fulfilling any order. They need the PO in order to invoice the City correctly so

they can be paid promptly.

City personnel may not simply call in an order to a supplier, providing only a

PO number. They must not ask a supplier to fulfill an order without a

valid PO in-hand. To do so is a major purchasing violation.

Receiving

Goods must be received in PeopleSoft from a packing slip, not from an

invoice. Where possible, the receiving process should be performed by

operations staff.

Services will not be received in PeopleSoft at all.

Receiving will be ‘Blind’ meaning users will not see the amount ordered.

They should record only what was actually physically received.

NEW PROCESS – ACCOUNTS PAYABLE (A/P)

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Invoices will not be sent directly to departments. Goods will be received

from a packing slip, not an invoice. The accounting and approvals have

already taken place on the requisition.

The funds to pay the invoice were encumbered and committed when the

requisition was approved and the PO was created.

For Goods: Only invoices needing further information will be sent to

departments. All other invoices will be processed without further review at

the department level. If the goods have been delivered intact, additional

review is not needed.

For Services: Invoices for services will also be sent directly to A/P. An

image of the invoice will be attached to the voucher and the voucher will be

routed to the department to verify that the services were performed.

Employee reimbursements for tools, boots or other out-of-pocket

expenses will no longer require a requisition. They will be entered as an

Expense Report into the Travel and Expense module with receipts attached.

Once approved, the employee will be paid electronically into his/her primary

payroll account.

CONTRACTS VS. PURCHASE ORDER RELEASE

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Contracts vs. Purchase Order Release

Procurement Contract defines Goods and Services that

the City has the right to buy at a certain price under certain

terms and conditions.

Purchase Order or Purchase Order Release (POR)

formerly documents that the City is exercising its rights

under the contract.

Purchase Order or POR is the only mechanism to process

an invoice and create a payment.

SPECIAL TOPIC: PURCHASE ORDER RELEASE CYCLE

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Step 1: To create or amend an existing Contract:

Prepare a Requisition of the appropriate type (i.e. PT or

PT Type, GSA or Social Services Contracts).

Requisition is approved.

Contract is developed and executed.

Procurement Contract is created in PeopleSoft.

Step 2: To order Goods/Services from the Contract:

Create a Purchase Order Release Requisition.

CHANGES TO PROCUREMENT CONTRACT

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Changes to be aware of on Procurement Contracts:

Procurement Contracts will also use Category Codes and

Items.

They will no longer allow Open Item Reference – more

restrictive.

In order to attach an ePro Requisition to a Contract users

must select an Item or a Category Code that is on the

Contract.

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WE MADE IT! TRAINING & SUPPORT

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PREPARATION FOR GO LIVE

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Additional Resources for Ongoing Support:

1. Training Guide for Requisitioner’s:

eProcurement - Creating Requisitions

2. Web Courses (called UPK’s)

3. System Process Document (SPD) – Detailed Job

Aids with steps and some screenshots

4. Job Aid – Brief Job Aids (steps only)

5. Central Purchasing website

6. Frequently Asked Questions-eProcurement Library

7. Link to eProcurement Library & Weekly Blasts on

eWeb Home Page:

8. Open Workshops for hands-on assistance

Spread the word of these upcoming changes with

management and those involved in the Purchasing

process in your department.

Ensure message is accurate and consistent.

Have questions or concerns? Contact the ePro Project

Team if you have questions or need assistance. Peter Taichert, ERP Business Analyst II, 768-3279 or

ptaichert@cabq.gov

Misty Billy, Purchasing Program Specialist, 768-3543 or

mbilly@cabq.gov

Central Purchasing, 768-3320

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COMMUNICATION AND SUPPORT

Thank you for attending:

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