Setting Up Purchase Requisition Authorization—Basic Data and Requirements Exercises

Basic Data Setup

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. In the General tab, use English as the default language.
3. In the Address/Purchase Address Info tab, right-click and then click Supply Chain Matrix for Supplier.
4. In the To Demand Site tab, enter CIF (Cost Insurance Freight) as 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. In the Invoice/General tab, use USD as the currency.
7. In the Purchase/General tab, enter yourself as buyer. Use USD as the currency.

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

Authorizer

Purpose: The purpose of this exercise is to create and/or update the authorizers so they can be used in the authorization steps in the authorization routing template.

Windows:
Purchase Authorization Basic Data/Authorizer

1. Create yourself as an authorizer and set all three authorization limits for yourself to 600 USD.
2. Make sure that the other authorizers in the table below exists as authorizers and have the corresponding authorization limits.

General exercise for Creating an Authorizer

Authorization Group

Purpose: The purpose of this exercise is to create an authorization group to which you will belong.

Windows:
Purchase Authorization Basic Data/Authorization Groups

1. Create an authorization group and add yourself, the authorizers 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:
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 Project Roles tab in the Project window and add the project role PM
4. 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

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 three authorization routing templates, one for your authorization group, one for you as an individual and one including several authorization steps.

Windows:
Purchase Authorization Basic Data/Authorization Routing Templates

1. Create an authorization routing template with one step, requiring authorization by one of the members of the authorization group.
2. Create a second authorization routing template with one step, requiring authorization by you.
3. 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

Main Exercises

Purpose: The purpose of this exercise is to familiarize you with the functionality for creating authorization rules for purchase requisitions.

Windows:
Purchase Requisition Authorization Rule

It has been decided IFS Racing's purchase requisition lines that are entered on your site for goods and services supplied by Dunlop, authorization must be made by you personally. Purchase requisition lines for goods and services supplied to your site by all other suppliers should be authorized by one of the members of your authorization group.

It has however also been decided that all purchase requisition lines that are entered on your site connected to project PRXX for goods and services always should be authorized by the project manager of this project. If the purchase amount of a requisition line to this project is > 100.000 USD it should be acknowledged by the project manager and authorized by the CEO. This rule has the highest priority.

In this exercise, you will set up three new authorization rules for your site.

Setting Up Purchase Requisition Authorization Rules

Note: You will begin by creating an authorization rule that applies to all purchase requisition lines that are entered on your site.

1. Open the Purchase Requisition Authorization Rule window.
2. Create a new record (F5). Your default site and the currency are populated.
3. Enter a name, e.g., XX1 where 'XX' are your initials, for the new purchase requisition authorization rule.
4. In the Priority field, enter 100 for the authorization rule's priority.
5. In the Order Code field, click % (wildcard). Since this authorization rule will be applied to all purchase requisition lines entered on your site, the order code, amount, requisitioner, supplier, purchase group, pre posting, project category 1, project category 2 and project of the purchase requisition line do not have any significance.
6. Leave the Minimum and Maximum Requisition Line Amount/Base fields blank.
7. Select the Apply to All Requisitioners on Site, Apply Regardless of Supplier, Apply Regardless of Purchase Group, Apply Regardless of Project Category 1, Apply Regardless of Project Category 2 and Apply Regardless of Projects check boxes. Do not select the Use Gross Amounts check box.
8. In the Routing Template ID list, click the authorization routing template of your authorization group.
9. Don’t select the Include All Steps in Authorization checkbox. This will only copy necessary authorization steps until a step with enough authorization limit has been reached to the purchase requisition line. In this case when the authorization routing only contains one step it does however not matter if this checkbox is selected or not as the result will be the same.
10. Save your changes (F12).

Note: In the Pre Postings tab, the row with the wildcard % for each of the code parts indicates that the authorization rule is to be applied to all purchase requisition lines, regardless of the pre posting for any of the code parts.

11. The new authorization rule is in status Planned. To activate it, right-click and then click Release.

Note: Now you will create an authorization rule that applies to all purchase requisition lines that are entered on your site for goods and services that are supplied by Dunlop. In order to override the first authorization rule that you created, you will need to make clever use of the Priority field.

12. Create a new record (F5). Your default site and the currency are populated.
13. Enter a name, e.g., XX2 where XX are your initials, for the new purchase requisition authorization rule.
14. In the Priority field, enter 99.
15. In the Order Code field, click %. Since this authorization rule will be applied to all purchase requisition lines that are entered on your site for goods and services supplied by Dunlop, the order code, amount, requisitioner, purchase group, pre posting, project category 1, project category 2 and project of the purchase requisition line do not have any significance.
16. Leave the Minimum and Maximum Requisition Line Amount fields blank.
17. Select the Apply to All Requisitioners on Site, Apply Regardless of Purchase Group, Apply Regardless of Project Category 1, Apply Regardless of Project Category 2 and Apply Regardless of Project check boxes.
18. In the Routing Template ID list, click the authorization routing template of your authorizer.
19. Don't select the Include All Steps in Authorization checkbox.
20. Save your changes (F12).
21. Click the Suppliers tab and create a new record (F5).
22. In the Supplier list, click the supplier XX-170 (Dunlop).
23. Save your changes (F12).
24. The new authorization rule is in status Planned. To activate it, right-click and then click Release.

Note: Now you will create an authorization rule that applies to all purchase requisition lines that are connected to 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.

25. Create a new record (F5). Your default site and the currency are populated.
26. Enter a name, e.g., XX3 where XX are your initials, for the new purchase requisition authorization rule.
27. In the Priority field, enter 98.
28. In the Order Code field, click %. Since this authorization rule will be applied to all purchase requisition lines that are entered on your site connected to project PRXX, the order code, amount, requisitioner, purchase group, and pre posting project category 1 and project category 2 of the purchase requisition line do not have any significance.
29. Leave the Minimum and Maximum Requisition Line Amount fields blank.
30. Select the Apply to All Requisitioners on Site, and Apply Regardless of Purchase Group, Apply Regardless of Project Category 1 and Apply Regardless of Project Category 2 check boxes.
31. In the Routing Template ID list, click the authorization routing template including the project manager and CEO.
32. Don’t select the Include All Steps in Authorization checkbox.
33. Save your changes (F12).
34. Click the Projects tab and create a new record (F5).
35. In the Project list, click the project PRXX.
36. Save your changes (F12).
37. The new authorization rule is in status Planned. To activate it, right-click and then click Release.