Purchase Requisition

Introduction

The purchase requisition is a preliminary step to creating purchase orders, and can be seen as a proposal to the purchaser for what is needed. In contrast to a purchase order, a requisition can be entered by any user. A requisition does not cause parts to be purchased; it is merely a proposal to a purchaser or coordinator when creating a purchase order. 

There are two different ways of working with a purchase requisition. You can either create a request for quotation, or create a purchase order directly from the purchase requisition.

Automatic creation of Purchase Requisitions

A purchase requisition can be entered manually or created automatically, for example, with the use of a planning tool. Since there may be different system-requisitioners, you may have to handle purchase requisitions that you did not enter. The following are instances when purchase requisitions are created automatically:

Entering a Purchase Requisition

A purchase requisition is comprised of a requisition header and one or more requisition lines. To enter a purchase requisition, you must first enter the header and then create purchase requisition lines.

The information entered in the header is common to all the requisition lines in that purchase requisition. To enter the purchase requisition header, the requisitioner and internal destination must have been defined as basic data.

There are two types of lines: Part Requisition lines and No-part Requisition lines. Part requisition lines are used to enter the purchase order lines for inventory parts that are entered as purchase parts. No-part requisition lines are used for parts that are considered as one-time purchases; these parts are not given the same treatment as regularly purchased parts, and will not be entered into in the system as parts.  

You can enter a purchase requisition line when the supplier is not known. If a supplier is not connected to the part, a message will be displayed. It is not necessary to indicate a supplier if the requisition will be converted to a request for quotation.

You can view alternate parts (if they are defined) by selecting the line, right-clicking and then clicking Alternate Purchase Part Base Data. Any specified alternate parts on the site will be displayed. 

A purchase requisition can also be created from work order, project and from the Supplier for Purchase Parts window.

Handling a Purchase Requisition

A purchase requisition must be released, authorized (if required), and then converted to either a Request for Order Quotation, or a Purchase Order.

When you release a purchase order, you can release the entire purchase requisition at once, or release it line by line. 

Authorization

Authorization is required if an applicable purchase requisition authorization rule exists for any of the requisition lines. This is indicated by the selected Authorization Required check box on the header of the purchase requisition.

You can authorize purchase requisition lines using the Purchase Requisition window, or one of the overview windows. 

If you are using the Purchase Requisition window, click the Authorization tab. On the left of the tab, select the authorizer or authorization group you are authorizing. On the right of the tab, you can view all the requisition lines the authorizer/authorization group has to authorize. On the right of the window, you can select the specific lines that you want to authorize.

 When using the Purchase Requisition Line Authorization window, simply query for and select the lines you want, and authorize using a right mouse button option.

Convert to RFQ or PO

A request for order quotation is a request for a price quotation for one or several parts or services, including external maintenance and repair services. A request for order quotation also requests a projected date of delivery, and mentions the terms of delivery and shipping. Often, you want to send requests for order quotations to several suppliers before you place an order. Note that instead of converting a purchase requisition, you can also create a new request for order quotation manually. The purchase requisition line does not have to be authorized (even if authorization is required by lines), before the line can be converted into a request for order quotation.

If you decide to convert a purchase requisition to a purchase order, you have three options: you can let the system add requisition lines to the first available purchase orders, add requisition lines to a given purchase order, or create a new purchase order. However, if no appropriate purchase order exists, the system creates a new purchase order. You can choose between creating a new order manually, or letting the system automatically pick an order, when the requisition has several lines with different suppliers. 


Express Orders 

If you have selected Order Code 5 on the purchase requisition, this will amount to an express order. When Express Order is used, purchase orders are immediately created for all the lines as soon as they have been fully authorized, i.e., as soon as a line has been authorized by all the required authorizers, it is converted. When purchase order lines have been created for all the requisition lines, i.e., the entire purchase requisition has been fully authorized, the status of the purchase requisition is changed to Closed. The created purchase order is automatically released and printed. There is no difference in the prerequisites that need to be met before the purchase requisition can be authorized.

Features

Quick Entry of Supplier in Purchase Requisitions

This feature is used to enter a supplier record while in the process of entering a purchase requisition. The supplier for purchase part connection can also be established more easily this way. The new supplier entry will be based on an already existing supplier; to do this, the existing supplier must have been tagged as a template supplier. To perform the quick entry, right-click on the purchase requisition line, and then click Create Supplier from Template, and enter data about your supplier in the window that opens. Note that the supplier will be marked as quick-registered in the supplier record. You can later supplement the new supplier with necessary data.

Supplier Split

Supplier split is used to split the purchase of a part between several suppliers. It is useful when some suppliers do not deliver on time, when one supplier might be unable to handle a high volume requirement, or when it is required to phase in and phase out suppliers over a period of time. The quantity is split by setting up splitting percentages per part.

Using Estimated Price for Parts without Part Number

This feature allows you to enter purchase requisition no-part lines, even without having the correct price or supplier information. Enter the no-part line in the normal way, and indicate that the price is estimated by selecting the Estimated Price check box. You can release and perform an authorization of the purchase requisition line even if it is carrying estimated price information and the supplier is not defined. You can enter the correct price or define a supplier, if one is missing, even after authorization has been performed. When the price is correct, clear the check box. Before converting the purchase requisition line to a purchase order, the Estimated Price check box must be cleared, and a supplier must have been entered.

Compare Purchase Prices

If you want to view a purchase price comparison, you can do this as soon as the part number is entered. Select the line, and select the Price Comparison right mouse button option. In the dialog box that opens, enter the purchase quantity that you want to use for the price comparison.