Requisition Issue and Approval

8/9/2019 Requisition Issue and Approval

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Project HORIZONERP Implementation Venture


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Requisition Processing

Iftekhar Ahmed Chowdhury


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3LAFARGE SURMA CEMENT

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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Requisition Issue and Approval

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