4.2 Purchase Requisitions & Request for Quotations Flashcards by N B

What is the Purchase Requisitions application used for?

Create purchase requisitions for item, supplies, or services

Create purchase orders from purchase requisitions

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What is a purchase requisition (PR)?

Written request issued internally to a purchasing department to order items or services

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What occurs when a PR is created?

sets off a chain reaction of activities within the purchasing process

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Internal PRs

Request the transfer of materials from another company storeroom

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External PRs

Request the purchase of necessary materials from an outside vendor which can be specified

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Is a Vendor always required on a PR?

See: Internal and External PR

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PR statuses (list)

WAPPR - Waiting for Approval
APPR - Approved
CLOSE - Closed
CAN - Canceled

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WAPPR status (PR)

Status that a purchase requisition is assigned when it is created

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Are all fields editable when a PR is in WAPPR status?

No - some default fields are read-only

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True/False: APPR status is always required on a PR

False: APPR status is available only if the business rules require approvals

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Describe default configuration as pertaining to APPR status (PR)

Does not require approvals for purchase requisitions and purchase requisition line items that you transfer to purchase requisitions

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Requirement to approve a PR (change status to APPR)

Must have a monetary approval limit equal to or greater than the total cost of the purchase order (requisition?)

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How are approval limits set (i.e. for approving PR)?

System administrator sets approval limits for each user

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CLOSE status (PR)

Indicates that all the purchase requisitions line items have been assigned to one or more purchase orders

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Editability in CLOSE status (PR)

All fields read-only
Record can no longer be modified

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What prevents purchase requisitions from being closed with pending line items to be assigned?

if you try to close a purchase requisition and a line item has not yet been assigned, a message is displayed

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Customizable functionality related to closing PRs

System administrator can set the system to automatically close purchase requisitions once you transfer all the line items to purchase orders, requests for quotations, or contracts

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Record editability in CAN (Canceled) status (PR)

All fields are read only, and a record can no longer be modified

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When is CAN status available on a PR?

Current purchase requisition status is Approved (APPR), and
None of its line items have been assigned to a purchase order

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What can PR lines be?

Item
Material
Service
Standard Service
Tool

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Default precedence for applying tax codes on a PR, PO, or Invoice

most accurate location to least:

Ship To Address
Company
Item/Vendor
Item/Organization

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What is the Request for Quotations application used for?

Create request for quotations
Store the quotations

What are the quotes used for (RFQs)?

The best vendor can be assessed and chosen

Who is the request for quotation (RFQ) sent to?

1 or more potential vendors

Requirement in order to list a vendor on an RFQ record

The vendor must have a corresponding record in the Companies application

What can be specified in an RFQ?

- Line items - required delivery dates - other conditions that the vendor should meet

Process to complete an RFQ

1. Copy PR lines to RFQ 2. Specify Vendors 3. Record Quotations 4. Award RFQ 5. Create PO

Copy PR lines to RFQ Describe this step of RFQ creation | When is this step done (after what), what is done, and purpose?

When: Once a purchase request has been made What is done: PR lines can be copied onto an RFQ Why: to send to the vendors for quotes

Copy PR lines to RFQ How is this done? | Hint: what action is used?

This can be done easily through the action **Copy PR Line Items to RFQ**

Specify Vendors Describe this step of RFQ creation | When is it done? How?

When: Once the RFQ lines are created What: Vendors that the user wishes to receive quotations from How: Can be added to the Vendors tab of the RFQ application

Record Quotations Describe this step of the RFQ creation process | When is it done? What is done? How?

When: Once quotations are received from the vendors What: Can be recorded from the Quotations tab How: Selecting the vendor and adding the rows in the table below

Record Quotations Describe how to undo actions here

Lines on the Quotations tab can be deleted by clicking the garbage bin button on the row

Award RFQ Describe this step of RFQ creation | When is this done? What is done? How?

When: Once a vendor has been chosen What: The RFQ line can be awarded How: By using the Awarded checkbox on each line from the Quotations for Vendor table

Create PO Describe this step of the RFQ creation process | When is this done? What is done? How?

When: Once a quotation line has been awarded What: A purchase order can be created How: From the Vendor line details from the Quotations tab, by selecting the Create PO button

Requirements to create PO from RFQ

RFQ must be in SENT or COMP status

# Request for Quotations In what scenarios can quotation lines not be deleted?

* If the quotation lines have been copied to a purchase order * If the RFQ has a closed status | Either or both

List the RFQ statuses

INPRG - In Progress READY - Ready to be Sent SENT - Sent to the Vendor COMP - Completed CANCEL - Canceled CLOSE - Closed

Default status of RFQ?

INPRG - In Progress

RFQ must remain in INPRG status until ...

All the information and line items have been specified

What can and can't be modified when an RFQ is in INPRG status?

all tabs and fields can be modified except for the Quotation Lines table

What status can an RFQ be changed to, for editing? With what restrictions?

INPRG Always able to make this status change except for when the RFQ is in COMP or CLOSE status

# Request for Quotation (RFQ) Statuses READY - Ready to be Sent | What does this indicate?

Indicates that the RFQ is ready to be sent to vendors

# Request for Quotation (RFQ) Statuses Editability in READY status

Read-only

# Request for Quotation (RFQ) Statuses SENT - Sent to the Vendor | What does this indicate?

Indicates that the RFQ has been sent to the vendors

# Request for Quotation (RFQ) Statuses Editability in SENT status

Read-only tabs: - RFQ - RFQ Lines Tabs that can be modified: - Vendors - Quotations - Terms and Conditions

# Request for Quotation (RFQ) Statuses COMP (Completed)

Indicates that all quotations have been received

# Request for Quotation (RFQ) Statuses Editability in COMP status

Can be modified: - Quotation Lines - Terms and Conditions Read-only: All other tabs and fields

# Request for Quotation (RFQ) Statuses CANCEL (Canceled)

Indicates a cancelled RFQ

What is required for an RFQ to be able to be canceled?

Only if no quotations have been awarded

# Request for Quotation (RFQ) Statuses When is CANCEL (Cancel) not available?

After a quotation has been converted to a PO

In what statuses can an RFQ record not be modified?

CANCEL - Canceled CLOSE - Closed

# Request for Quotation (RFQ) Statuses CLOSE (Closed)

Indicates a closed RFQ

# Request for Quotation (RFQ) Statuses Prerequisites to change status to CLOSE (Closed)

Quotation lines must be awarded