Authorizing Purchase Requisitions—Exercises
IMPORTANT |
It is extremely important that you set up and work within your own site to maintain your data integrity. If you
work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable
exercise results require that your data be isolated in your own site. |
Basic Data Setup (Purchase Requisition Authorization Rule)
Purchase Part
Purpose: The purpose of this exercise is to enter a non-inventory registered purchase part, e.g., a
service, and an inventory registered purchase part.
Windows:
Purchase Part
Inventory Part
- Enter a non-inventory registered purchase part with the part number XX-98-101, replacing XX with your initials, and the description Wheel Balancing Service. Use Hour as the purchase unit of measure.
- Enter an inventory registered purchase part with the part number XX-55-103, replacing XX with your initials, and a description of High Performance Racing Wheel. Use PCS as the unit of measure and enter an estimated material cost.
General exercise for Purchase Part
General exercise for Enter Purchased Inventory Part
Supplier
Purpose: The purpose of this exercise is to enter the supplier of the part that has the identified requirement.
Windows:
Supplier
- Enter the British tire supplier XX-170, replacing XX with your initials. In the Name field, enter Dunlop.
- On the
General tab, use English as the default language.
- On the Address/Purchase Address Info tab, right-click and
then click Supply Chain Matrix for Supplier.
- 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.
- Save, and go back to the
Supplier window.
- On the Invoice/General tab, use USD as the currency.
- On the Purchase/General tab, enter yourself as the buyer. Use USD as the currency.
- Create a new record with an identity of XX-180, replacing XX with your initials, and the name Toyo Tires. Repeat steps 2 through
7 for the second supplier.
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 the purchase parts to corresponding suppliers.
Windows:
Supplier for Purchase Part
- Connect purchase part XX-98-101 (Wheel Balancing Service) to supplier XX-170 (Dunlop). The price for this service is 50 USD per hour.
- Connect purchase part XX-55-103 (High Performance Racing Wheel) to supplier XX-180 (Toyo Tires).
General exercise for Supplier for Purchase Part
Authorization Group
Purpose: The purpose of this exercise is to create an authorization group to which you will belong.
Windows:
Project Basic/Default Project Role
Projects
Project/Roles
Project/Role Assignments
- Create an authorization group and add yourself,
EDDIE and DAMON 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:
Purchase Authorization Basic Data/Authorization Groups
- 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.
- Open the Projects window and create a project PRXX,
replacing XX with your initials and add MIKE as project Manager.
- Open the Project Roles tab in the Project window
and add the project role PM
- Open the Project Role Assignments tab in the
Project window and add run RMB Generate Role Assignment. 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 Positions
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
- Open the Graphical Position Structure window and
double click on the CEO position.
- 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
three authorization routing templates, one for your authorization
group, one for you and one including several authorization
steps.
Windows:
Purchase Authorization Basic Data/Authorization Routing Templates
- Create an authorization routing template with one step, requiring authorization by one of the members of your authorization group.
- Create a second authorization routing template with one step, requiring authorization by you.
- Create a third authorization routing template with
two steps. Step 10 against the project role PM (Project Manager) and step 20
against the position CEO (Chief Executive Officer).
General exercise for Creating an Authorization
Routing Template
Purchase Requisition Authorization Rule
Purpose: The purpose of this exercise is to create
three purchase requisition authorization rules for your site.
Windows:
Purchase Requisition Authorization Rule
- Create and release a purchase requisition authorization rule requiring your authorization on all purchase requisition lines entered on your site for goods and services that are supplied by Dunlop.
- Create and release a second purchase requisition authorization rule requiring authorization by a member of your authorization group on all purchase requisition lines entered on your site for goods and services from any supplier except Dunlop.
Hint: You will need to make clever use of the Priority field.
- Create and release a third purchase requisition
authorization rule requiring authorization by the project manager (or by the
project manager and the CEO if the amount is > 100.000) on all purchase
requisition lines entered on your site for goods and services that are
connected to the project PRXX. In order to override the first two
authorization rules that you created, you need to set a higher priority
(=lower value) in the Priority field.
General exercise for Setting Up Purchase Requisition Authorization Rules
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
- Enter an approved suppliers list for purchase group XX-30 on your own site.
- Connect authorization routing template XX-30 to the list.
- Add the two suppliers XX-170 Dunlop and XX-171 Nitto to the list.
- 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., an
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
- Open the
Inventory Part window.
- 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.
- Set the part type to Purchased.
- Save the record.
- Right-click and then click Purchase Part.
- Set the purchase group to XX-30.
- Save the record.
- Right-click and then click Supplier for Part.
- 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
Entering a Purchase Requisition (Purchase Requisition Authorization Rule)
Purpose: The purpose of this exercise is to show you the required data that is used in the
main exercises below.
Windows:
Purchase Requisition
- Enter a normal (order code 1) purchase requisition on your site, for 10 Hours of the purchase part XX-98-101 (Wheel Balancing Service) from the supplier XX-170 (Dunlop) and 8 PCS of the purchase part XX-55-103 (High Performance Racing Wheel) from the supplier XX-180 (Toyo Tires). Set the wanted receipt date to two weeks from today and enter yourself as
the requisitioner. Make a note of the purchase requisition number.
- Release the purchase requisition.
- Note the Authorization Required check box. Study the
Authorization tab and the Template ID field of the
Part Requisition Lines tab.
General exercise for Entering Purchase Requisitions
Entering a Purchase Requisition (Approved Suppliers List)
Purpose: The purpose of this exercise is to show you the required data that is used in the
main exercises below.
Windows:
Purchase Requisition
- Enter a normal (order code 1) purchase requisition on your site, for 10 pieces of the purchase part XX-98-200 (2.0
liter Engine) from the supplier XX-170 (Dunlop), and 8 pieces of the purchase part XX-98-200 (2.0
liter Engine) from the supplier XX-171 (Nitto). Set the wanted receipt date to two weeks from today and enter yourself as requisitioner. Make a note of the purchase requisition number.
- Release the purchase requisition.
- Note the Authorization Required check box. Study the
Authorization tab and the Template ID field of the
Part Requisition Lines tab.
General exercise for Entering Purchase Requisitions
Main Exercises
Purpose: The purpose of this exercise is to familiarize yourself with
authorizing purchase requisitions.
Windows:
Purchase Requisition Line Authorization
The purchase requisition for wheel balancing and racing wheels must be authorized before it can be converted to purchase orders.
Any purchases for parts connected to the purchase group XX-30 need to be authorized by the quality assurance
department unless they have audited and approved the supplier.
- Open the Purchase Requisition Line Authorizations window and query for the purchase requisition created first.
- Select the rows requiring your authorization, right-click and then click Authorize/Acknowledge. Your signature and the date of authorization automatically
appears in the rows.
Note: This window has some other useful options. You can revoke authorization if, for example, the wrong
purchase requisition was authorized, by right-clicking and clicking Revoke Authorization. You can add a note to the
authorization by right-clicking and clicking Notes. You can also access the purchase requisition directly by
right-clicking and clicking Purchase Requisition.
- Select the rows that you authorized, and right-click and then click Purchase Requisition. The
Purchase Requisition window appears.
- Note the Authorization Required check box and study the
Authorization tab, as well as the status of the header and lines.
Note: You can also authorize a specific purchase requisition in the
Purchase
Requisition/Authorization tab.
- Open the Purchase Requisition Line Authorizations window and query for the purchase requisition created for the approved suppliers list exercise.
- Select the rows requiring your authorization, and right-click and then click Authorize. Your signature and the date of authorization automatically
appears in the rows.
Note: The line for the supplier XX-170 Dunlop does not require authorization since this supplier has been
approved on the approved suppliers list for purchase group XX-30.
- Select the rows that you authorized, and right-click and then click Purchase Requisition. The
Purchase Requisition window appears.
- Note the Authorization Required check box and the
Authorization tab, as well as the status of the header and lines.
Note: You can also authorize a specific purchase requisition in the
Purchase Requisition/Authorization tab.