4.2 Purchase Requisitions & Request for Quotations Flashcards
What is the Purchase Requisitions application used for?
Create purchase requisitions for item, supplies, or services
Create purchase orders from purchase requisitions
What is a purchase requisition (PR)?
Written request issued internally to a purchasing department to order items or services
What occurs when a PR is created?
sets off a chain reaction of activities within the purchasing process
Internal PRs
Request the transfer of materials from another company storeroom
External PRs
Request the purchase of necessary materials from an outside vendor which can be specified
Is a Vendor always required on a PR?
No
See: Internal and External PR
PR statuses (list)
WAPPR - Waiting for Approval
APPR - Approved
CLOSE - Closed
CAN - Canceled
WAPPR status (PR)
Status that a purchase requisition is assigned when it is created
Are all fields editable when a PR is in WAPPR status?
No - some default fields are read-only
True/False: APPR status is always required on a PR
False: APPR status is available only if the business rules require approvals
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
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?)
How are approval limits set (i.e. for approving PR)?
System administrator sets approval limits for each user
CLOSE status (PR)
Indicates that all the purchase requisitions line items have been assigned to one or more purchase orders
Editability in CLOSE status (PR)
All fields read-only
Record can no longer be modified
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
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
Record editability in CAN (Canceled) status (PR)
All fields are read only, and a record can no longer be modified
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
What can PR lines be?
Item
Material
Service
Standard Service
Tool
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
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
- Copy PR lines to RFQ
- Specify Vendors
- Record Quotations
- Award RFQ
- 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
