Authorizing Purchase Orders—Exercises

Basic Data Setup (Purchase Order Authorization Rule)

Purchase Part, Non Inventory-Registered

Purpose: The purpose of this exercise is to enter a non-inventory registered purchase part, e.g., a service.

Windows:
Purchase Part

1. Enter a purchase part with the part number XX-98-101, replacing XX with your initials, and the description Wheel Balancing Service.
2. Click Hour as the purchase unit of measure.

General exercise for Purchase Part

Supplier

Purpose: The purpose of this exercise is to enter the supplier of the part that has the identified requirement.

Windows:
Supplier

1. Enter the British tire supplier XX-170, replacing XX with your initials. In the Name field, enter Dunlop.
2. On the General tab, use English as the default language.
3. On the Address/Purchase Address Info tab, right-click and then click Supply Chain Matrix for Supplier.
4. On the To Demand Site tab, enter CIF (Cost Insurance Freight) as the delivery term, 30 (Road Transport) as the ship-via code, external transport lead time 2, and internal transport lead time 1.
5. Save, and go back to the Supplier window.
6. On the Invoice/General tab, use USD as the currency.
7. On the Purchase/General tab, enter yourself as the buyer. Use USD as the currency.

General exercise for Supplier
General exercise for Setting Up Supplier-to-Site Supply Chain Parameters for Trading

Supplier for Purchase Part

Purpose: The purpose of this exercise is to connect your purchase part to the supplier.

Windows:
Supplier for Purchase Part

1. Connect purchase part XX-98-101 (Wheel Balancing Service) to supplier XX-170 (Dunlop). The price for this service is 50 USD per hour.

General exercise for Supplier for Purchase Part

Authorization Group

Purpose: The purpose of this exercise is to create an authorization group to which authorizers with higher authorization limit than you will belong.

Windows:
Purchase Authorization Basic Data/Authorization Groups

1. Create an authorization group and add the authorizers JAQUES and JACKIE as members of the authorization group.

General exercise for Creating an Authorization Group

Project Roles

Purpose: The purpose of this exercise is to create a project role, add this to a project and assign a person to this project role in the project.

Windows:
Project Basic/Default Project Role
Projects
Project/Roles
Project/Role Assignments

1. Open the Default Project Role tab in the Project Basic window and add the project role PM for project manager. Select the Default to Project checkbox.
2. Open the Projects window and create a project PRXX, replacing XX with your initials and add MIKE as project Manager.
3. Open the Roles tab in the Project window and add the project role PM
4. Open the Role Assignments tab in the Project window, right-click and then click Generate Role Assignments. The person MIKE is now displayed as assigned to the role PM.

General exercise for Defining Default Project Roles

General exercise for Creating and Assigning Project Roles

Organization Position

Purpose: The purpose of this exercise is to make sure that the organization position CEO is created for the company and that the person NIKI is assigned to this position.

Windows:
Graphical Position Structure/Assigned Employees

1. Open the Graphical Position Structure window and double click on the CEO position.
2. Open the Assigned Employees tab and make sure that the person Niki Lauda is assigned to this position.

Authorization Routing Template

Purpose: The purpose of this exercise is to create an authorization routing template, including several authorization steps.

Windows:
Purchase Authorization Basic Data/Authorization Routing Template

1. Create an authorization routing template with four steps. The first step of the authorization routing template should be the authorization by the buyer, the second step by a member of the authorization group, the third step by the project role project manager and the fourth step by the position CEO.

General exercise for Creating an Authorization Routing Template

Purchase Order Authorization Rule

Purpose: The purpose of this exercise is to create a purchase order authorization rule for your site.

Windows:
Purchase Order Authorization Rule

1. Create and release a purchase order authorization rule, requiring all purchases made at your site to be first authorized by the buyer. If the buyer doesn’t have enough authorization limit other steps with authorization group, project manager and CEO will be required depending on the amount to authorize.

General exercise for Creating a Purchase Order Authorization Rule

Basic Data Setup (Approved Suppliers List)

Approved Suppliers List

Purpose: The purpose of this exercise is to enter an approved suppliers list to be used in the main exercise.

Windows:
Approved Suppliers List

1. Enter an approved suppliers list for purchase group XX-30 on your own site.
2. Connect authorization routing template XX-30 to the list.
3. Add the two suppliers XX-170 Dunlop and XX-171 Nitto to the list.
4. Approve the supplier XX-170 Dunlop and set the approved until date one year from today.

General exercise for Approved Suppliers List

Purchased Inventory Part

Purpose: The purpose of this exercise is to enter an inventory registered purchased part, e.g., a engine. To use the approved suppliers list we will also have to connect it to the purchase group XX-30 Engines. After this we will connect it to the two suppliers used on the approved suppliers list.

Windows:
Inventory Part

1. Open the Inventory Part window.
2. Enter an inventory part with the part number XX-98-200, replacing XX with your initials, and a description of 2.0 liter Engine on your own site.
3. Set the part type to Purchased.
4. Save the record.
5. Right-click and then click Purchase Part.
6. Set the purchase group to XX-30.
7. Save the record.
8. Right-click and then click Supplier for Part.
9. Connect the part to the suppliers XX-170 Dunlop and XX-171 Nitto.

General exercise for Purchased Inventory Part, Purchase Part, and Supplier for Purchase Part

Required Data

Purchase Order (Purchase Order Authorization Rule)

Purpose: The purpose of this exercise is to show you the required data that is used in the exercises below.

Windows:
Purchase Order

1. Enter a purchase order on your site, for 10 Hours of the purchase part XX-98-101 (Wheel Balancing Service) from the supplier XX-170 (Dunlop). Set the receipt date to one week from today and enter yourself as the buyer and coordinator. Make a note of the purchase order number.
2. Try to release the purchase order. What does the information message say? Study the Misc Order Info and Authorization tabs.
3. Enter a second purchase order on your site, for 17 Hours of the purchase part XX-98-101 (Wheel Balancing Service) from the supplier XX-170 (Dunlop). Set the receipt date to one week from today and enter yourself as the buyer and coordinator. Make a note of the purchase order number.
4. Try to release the purchase order. Study the Misc Order Info and Authorization tabs. As you can see a higher purchase amount requires additional authorizers to be added to be able to authorize this amount.
5. Enter a purchase order on your site, for 17 Hours of the purchase part XX-98-101 (Wheel Balancing Service) from the supplier XX-170 (Dunlop). Set the receipt date to one week from today and enter yourself as the buyer and coordinator. Connect both the purchase order header and the purchase order line to the project PRXX. Make a note of the purchase order number.
6. Try to release the purchase order. Study the Misc Order Info and Authorization tabs. As you can see an authorization step with the project role project manager can now instead authorize the purchase order. The authorization line with the project manager was bypassed in step 4 above as that purchase order was not connected to a project.

General exercise for Entering Purchase Orders

Purchase Orders (Approved Suppliers List)

Purpose: The purpose of this exercise is to show you the required data that is used in the exercises below.

Windows:
Purchase Order

1. Enter a purchase order on your site, for 10 pieces of the purchase part XX-98-200 (2.0 liter Engine) from the supplier XX-170 (Dunlop). Set the receipt date to one week from today and enter yourself as buyer and coordinator. Make a note of the purchase order number.
2. Try to release the purchase order. What happens? Study the Misc Order Info and Authorization tabs.
3. Enter a purchase order on your site, for 2 pieces of the purchase part XX-98-200 (2.0 liter Engine) from the supplier XX-171 (Nitto). Set the receipt date to one week from today and enter yourself as the buyer and coordinator. Make a note of the purchase order number.
4. Try to release the purchase order. What happens? Study the Misc Order Info and Authorization tabs.

General exercise for Entering Purchase Orders

Main Exercises

Purpose: The purpose of this exercise is to familiarize you with the functionality for authorizing purchase orders.

Windows:
Purchase Order Authorization

The purchase orders for wheel balancing needs to be authorized before it can be sent to Dunlop.

Authorizing a Purchase Order (Purchase Order Authorization Rule)

1. Open the Purchase Order Authorization window and query for the first purchase order created.
2. Select the View Only Next Step checkbox. Now only the authorization steps that are possible to authorize right now are displayed.
3. Select the rows requiring your authorization. If you only want to display the authorization steps that you can authorize right now you can select the View Only My Next Step checkbox first.
4. Right-click and then click Authorize/Acknowledge. Your signature and the date of authorization automatically appears in the rows.

Note: This window contains other useful right-mouse button options. For example, you can revoke authorization if, for example, the wrong purchase order was authorized, by selecting the Revoke Authorization option. The authorizer can reject the authorization by selecting the Reject Authorization option. If the authorizer is not available you can forward his authorization step to somebody else which has enough authorization limit by using the Forward Authorization option. You can view all persons that are able to authorize/acknowledge an authorization step by selecting the View Potential Authorizers/Acknowledgers option. A note can be added to the authorization by selecting the Notes option. The purchase order can be accessed directly by selecting the Purchase Order option.

5. Select the rows that you authorized.
6. Right-click and then click Purchase Order. The Purchase Order window appears.
7. Note the Authorization Required check box and study the Authorization tab.

Note: You can also authorize a specific purchase order in the Purchase Order/Authorization tab.

Authorizing a Purchase Order (Approved Suppliers List)

1. Open the Purchase Order Authorization window and query for the purchase orders created for the approved suppliers list exercises.

Note: The purchase order for XX-170 Dunlop is released and does not require authorization.

2. Select the rows requiring your authorization.
3. Right-click and then click Authorize/Acknowledge. Your signature and the date of authorization automatically appears in the rows.
4. Select the rows that you authorized.
5. Right-click and then click Purchase Order. The Purchase Order window appears.
6. Note the Authorization Required check box and study the Authorization tab.

Note: You can also authorize a specific purchase order on the Purchase Order/Authorization tab.