Processing Purchase Orders Welcome PO 220 Processing Purchase Orders

Ground Rules Silence cell phones, PDAs, refrain from checking email Ask Questions Refrain from side conversations Take breaks as needed The slide sets the ground rule expectations for the classroom. Obey building safety rules and regulations

Learning Objectives After completing this course, you should be able to: Understand the purchase order structure and lifecycle. Understand and create procurement contracts. Create, approve, and process purchase orders in purchasing. Inquire on purchase order activities. Define the scope of SFS Purchasing training. Locate additional training materials, job aids, and other useful information. The slide introduces the learning objectives of the course, as defined in the course outlines.

Training Methodology Training Steps Tell Me – Facts, Concepts, Terms, Definitions Show Me – Relevant Demonstrations of Process Steps Let Me – Hands-on practice in User Productivity Kit (UPK) and Live Environment Help Me – Facilitator Support Training Materials Course Presentation UPK Simulations Training Exercises and Data Sheets User Guide and Job Aids The slide introduces the class to the highly interactive training methodology used in each of the SFS courses. Briefly describe the content of the available training materials. The location of these materials will be provided at the end of the lesson.

Agenda SFS PO Terms and Concepts Procurement Contracts Understanding Purchase Orders Sourcing Requisitions Creating Purchase Orders Approving Purchase Orders Processing Purchase Orders Purchase Order Inquiry Processing Returns to Vendors (RTV) SFS PO Learning Path and Resources This agenda slide introduces the class to the lessons included in the course.

SFS PO Terms and Concepts In this lesson, you should learn: Key SFS Purchasing terms and concepts. Key SFS Purchasing process changes. Key SFS Purchasing ChartField values. This slide lists the topics to be explored in this lesson.

SFS PO Terms and Concepts Key Terms and Concepts – Contracts Term/Concept Definition Procurement Contract The procurement contract is a document used to establish an agreement with a vendor for the purchase of goods and / or services. Centralized Contracts Centralized contracts are contracts established by one agency for use by other agencies and are managed within SFS. The contract language and detail can be accessed on the website of the contract’s holding agency. Audit Type Audit type replaces the Batch Type as the value that determines if a transaction must be routed to OSC for approval. Amendment An amendment is used to modify the terms, conditions, and / or contract amounts related to a formal contract between a vendor and the state entity. Amendment Sequence Number A sequence number uniquely identifies each transaction with a contract and is required to encumber PO funds against a contract.

SFS PO Terms and Concepts Key Terms and Concepts – Purchase Orders Term/Concept Definition Buyer A buyer is a user with security privileges to create purchase orders and PO change orders. PO Dispatch PO dispatch is a batch process used to generate a PDF document that contains purchase order information to be sent to the vendor. PO Change Order A PO change order is created when changes are made on a dispatched purchase order to the header, lines, or schedule. It copies the information from the purchase order but is assigned a change sequence and must re-enter workflow. Sourcing Sourcing is an automated process that allows users to create purchase orders from requisitions based on user defined criteria. Purchase Order A PO is a written contract between a buyer and seller detailing the exact items or services to be rendered from a vendor. POs can be standalone or associated to a contract.

SFS PO Terms and Concepts Process Changes – Contracts (1 of 3) Old Process New Process The AC340 is used to encumber funds. In SFS, funds are encumbered through the purchase order, not the contract. Also, AC340 in SFS is represented by a Contract Record (Single Transaction Summary) and a Purchase Order encumbrance. Contracts are routed and approved manually. Once the contract is saved, a processor must review the contract and change its status. Upon agency approval, the contract transaction will be routed to OSC for approval, depending on the audit type selected. Electronically, agencies can change the vendor name associated with a contract; the original contract number and all other related data is retained. In SFS, vendor reassignments on a purchase order or contract must be addressed by closing the current purchase order or contract and then creating a new one. Agencies must request this task be completed by the BOC. Name change requests must be sent to OSC VMU. This slide describes some key terms essential for an understanding of PO.

SFS PO Terms and Concepts Process Changes – Contracts (2 of 3) Old Process New Process Contract numbers can be reused. Agencies can reuse contract numbers if BOC rejects a contract for any reason. The number cannot be reused if there is an existing contract with the same number in SFS. The management of contract budgets and deliverables is frequently paper-based. Time-based deliverables are not communicated to the vendor consistently. Agencies create PO releases from approved contracts in SFS and contract budgets, and deliverables must be managed to the individual PO release. Encumbrance transactions and vouchers are created against contract numbers. Purchase orders are used for the encumbrance and must reference the contract number. Vouchers must reference purchase orders, not contracts. This slide describes some key terms essential for an understanding of PO.

SFS PO Terms and Concepts Process Changes – Contracts (3 of 3) Old Process New Process BOC can make changes to the contract transaction record in CAS on behalf of agencies, and update start and end dates for contracts, which start on OSC approval. The only agency submitted information that BOC will be able to update in SFS as part of its audit is contract begin and end date. Changes, including corrections, to any other data fields will require that the contract be returned to the agency disapproved, and the agency will need to create a replacement contract (no resubmissions). Agencies submit expense and revenue contracts using the same process. Phase 1 agencies enter revenue (customer) contracts in SFS in the Customer Contracts module. The selection of contract type determines if the contract requires BOC approval. Prior to the transaction, there must be a valid customer for the contract. In addition, when a revenue contract is amended, a new transaction is created with a new contract number. This slide describes some key terms essential for an understanding of PO.

SFS PO Terms and Concepts Process Changes – Purchase Orders Old Process New Process Purchase Orders are managed via many different processes. All agencies will use the same SFS system workflow to process and record approvals. Agencies create and approve purchase orders and contracts on paper before entering the approved transactions into their system. Agencies will use the system generated workflow to approve purchase orders and contracts. Several processes exist for locating transactions within the approval process. All agencies will use the same SFS system workflow for the approval process. This slide describes some key terms essential for an understanding of PO.

SFS PO Terms and Concepts Process Changes – Purchase Orders (cont.) Old Process New Process Vendor IDs are entered into a free form text field for Payee ID. Agencies will choose vendors from a list of valid vendors. There is no integration between the requisition and a purchase order. In SFS, requisitions can be used to electronically create a purchase order. Each purchase order is completed manually. In SFS, a new purchase order can be created by copying from a previously processed purchase order. In CAS, in order to encumber funds or create a purchase order, only the PO number and chart of account information is required. All purchase orders in SFS require a vendor ID number, item, unique PO number, and ChartField distribution. This slide describes some key terms essential for an understanding of PO.

SFS PO Terms and Concepts At the transactional level, the SFS Chart of Accounts is comprised of two elements: General Ledger Business Unit (BU) – Defined for each entity that maintains and reports on its own transactional data. Chartfields – Codes used to categorize financial and budget transactions. Statewide ChartField segments include Department, Program, Fund, Account (CAS Object code). Agency-specific ChartFields include Operating Unit and Product. The SFS Chart of Accounts may be explored further in the GL 105: Introduction to Chart of Accounts course. More details about the SFS Chart of Accounts may be obtained at: http://www.sfs.ny.gov/programElements/coaMaterials.htm

Procurement Contracts In this lesson, you should learn: What are procurement contracts? The financial impact of contracts and encumbrances. How to create, approve, amend, and close a contract. This slide lists the topics to be explored in this lesson.

Procurement Contracts Procurement contracts are used by the State of NY within SFS to denote an agreement to procure goods or services from a vendor. Contracts in SFS do not have a financial impact. Purchase Orders released from the contract encumber funds and identify a specific order against the contract, but a contract must be established before an encumbrance can be created against it. Some contracts require OSC approval while others do not; the audit type of the contract determines the approval process.

Procurement Contracts Transactions Creating a contract Amending a contract Closing a contract This slide lists the topics to be explored in this lesson.

Learning Exercise Create a Contract 15 min You have been asked to create a contract with vendor NYS Industries for the Disabled, Inc. for office supplies. You must create a contract. 15 min Use the job aid handout for step-by-step instructions for completing the activity. Use the data sheet handout for specific values to enter into the system. Note: Please refer to your exercise sheet handouts which contain the data you need to complete this activity. The job aid can be used to assist you.

Purchase Order Life Cycle In this lesson, you should learn: The purchase order life cycle. This slide lists the topics to be explored in this lesson.

Purchase Order Life Cycle The basic steps of the Purchasing process are depicted below. The purchase order lifecycle is highlighted. Note: This is a high-level overview of the Purchase Order Life Cycle Business Process, and is not intended to represent every possible transaction.

Sourcing Requisitions In this lesson, you should learn: How to create a purchase order (using different approaches). This slide lists the topics to be explored in this lesson.

Sourcing Requisitions Transactions Creating a purchase order by copying an existing requisition Creating a purchase order using the Requisition Selection page Creating a purchase order using the Expedite Requisitions page Using the Sourcing Workbench The slide lists the transactions to be demonstrated using the UPK tool. Go to UPK now to explore these transactions.

Creating Purchase Orders In this lesson, you should learn: How to create a purchase order online. How to create a purchase order by copying an existing purchase order. How to create a purchase order from a contract. How to edit a purchase order. How to manage a change order. This slide lists the topics to be explored in this lesson.

Creating Purchase Orders Transactions Creating a purchase order online Creating a purchase order by copying an existing purchase order Creating a purchase order from a contract Editing a purchase order Managing a change order Encumbering a contract The slide lists the transactions to be demonstrated using the UPK tool. Go to UPK now to explore these transactions.

Learning Exercise Create a Purchase Order 15 min You have been asked to create a purchase order for office supplies. You must create a purchase order. 15 min Use the job aid handout for step-by-step instructions for completing the activity. Use the data sheet handout for specific values to enter into the system. Note: Please refer to your exercise sheet handouts which contain the data you need to complete this activity. The job aid can be used to assist you.

Learning Exercise Create a Purchase Order by Copying an Existing Purchase Order You have been asked create a purchase order for office supplies. To save time, you will copy an existing purchase order. You must edit a purchase order. 10 min Use the job aid handout for step-by-step instructions for completing the activity. Use the data sheet handout for specific values to enter into the system. Note: Please refer to your exercise sheet handouts which contain the data you need to complete this activity. The job aid can be used to assist you.

Approving Purchase Orders In this lesson, you should learn: How to approve, recycle, and deny a purchase order. This slide lists the topics to be explored in this lesson.

Approving Purchase Orders Transactions Approving a purchase order Recycling a purchase order Denying a purchase order The slide lists the transactions to be demonstrated using the UPK tool. Go to UPK now to explore these transactions.

Processing Purchase Orders In this lesson, you should learn: How to dispatch, close, and reopen a PO. How to use the PO reconciliation workbench. How to perform a PO roll over. This slide lists the topics to be explored in this lesson.

Processing Purchase Orders Transactions Dispatching a PO Using the PO reconciliation workbench Closing a PO Reopening a PO Performing a PO Roll Over The slide lists the transactions to be demonstrated using the UPK tool. Go to UPK now to explore these transactions.

Purchase Order Inquiry In this lesson, you should learn: How to view PO Data Activity. This slide lists the topics to be explored in this lesson.

Purchase Order Inquiry Transactions Viewing PO data activity The slide lists the transactions to be demonstrated using the UPK tool. Go to UPK now to explore these transactions.

Processing Returns to Vendor (RTV) In this lesson, you should learn: How to create an RTV. How to dispatch an RTV. How to run an RTV reconciliation process. This slide lists the topics to be explored in this lesson.

Processing Returns to Vendor (RTV) Transactions Creating an RTV Dispatching an RTV Running the RTV reconciliation process The slide lists the transactions to be demonstrated using the UPK tool. Go to UPK now to explore these transactions.

SFS PO Learning Path and Resources In this lesson, you should learn: The SFS Purchasing training structure. Where to find training materials and resources. This slide lists the topics to be explored in this lesson.

SFS PO Learning Path and Resources SFS Purchasing Training Structure PO 101 Introduction to SFS Purchasing PO 205 Processing Requisitions PO 210 Approving Requisitions PO 215 Using Procurement Cards PO 220 Processing Purchase Orders PO 225 Receiving and Return to Vendor This slide shows the course training sequence. You have just completed the highlighted course.

SFS PO Learning Path and Resources Training Materials Location and Class Preparation Location ILT Course Materials http://www.sfs.ny.gov/index.php?option=com_content&view=article&id=123:trainer-materials&catid=83:training-toolkit&Itemid=667 All Training Courses http://www.sfs.ny.gov/index.php?option=com_content&view=article&id=127:training-courses&catid=83:training-toolkit&Itemid=662 Job Aids and Reference Materials http://www.sfs.ny.gov/index.php?option=com_content&view=article&id=124:job-aids-and-reference-materials&catid=83:training-toolkit&Itemid=668 This slide contains a link to additional resources.

Summary Having completed this course, you should now be able to: Understand the purchase order structure and lifecycle. Understand and create procurement contracts. Create, approve, and process purchase orders in purchasing. Inquire on purchase order activities. Define the scope of SFS Purchasing training. Locate additional training materials, job aids, and other useful information. This slide lists the summary learning objectives of the course.

Thank you for your participation! Conclusion Thank you for your participation! Thank you!

Slides for Agency Use (Arial, Font 36) Agency specific Heading (Arial font 24) Topic 1. (Arial Font 20) Topic 2. Topic 3. Topic 4. Topic 5. Type speaker notes here.

Slides for Agency Use (Arial Headings, Font 36 for single line, 32 for double lines) In this lesson you should learn: (Arial font 24) Topic 1. (Arial Font 20) Topic 2. Topic 3. Topic 4. Topic 5. Type speaker notes here.

Slides for Agency Use (Type Topic here) Agency Specific Key Terms and Concepts (Arial Font 24) Term / Concept Definition Term / Concept name (Arial Font 18) Definition of Term / Concept (Arial Font 16) Type speaker notes here.