Purchasing Project Miscellaneous Demand—Exercises

Basic Data Setup

Supplier for Purchase Part

Purpose: The purpose of this exercise is to show you how to connect a supplier to your purchase parts that you will be procuring in the following exercise.

1. Register a primary supplier for your purchase parts. For example, you can use Supplier 5000.
2. Save your changes.

General exercise for Supplier for Purchase Part

Inventory Location

Purpose: The purpose of this exercise is to show you how to create an inventory location for the receipt of project purchased items into inventory.

Windows:
Inventory Locations

1. Create the following new inventory locations at your site XX01, where XX is your initials.

General exercise for Entering Inventory Location

Required Data

Registering Miscellaneous Demand to Activities

Purpose: The purpose of this exercise is to familiarize you with the data that must be in place before you can perform the exercises below.

1. For activities in your subproject structure, register miscellaneous demand including inventory purchase parts, non-inventory purchase parts and no-parts.
2. Save your changes.

General exercise for Registering Project Demand

Releasing Activities

Purpose: The purpose of this exercise is to familiarize you with the data that must be in place before you can perform the Handling Project Purchase Orders exercise below.

1. Release the activities which have connected miscellaneous demand and purchase requisitions for which you want to create purchase orders.

General exercise for Executing Activities

Main Exercise

Purpose: The purpose of these exercises is to show you how to purchase project miscellaneous demand, including inventory parts, purchase parts, and no-parts.

Windows:
Project Navigator/Demand/Misc. Parts
Project Navigator/Demand/Misc. No Parts
Project Navigator/Connections
Project Navigator/Activity
Purchase Requisition
Purchase Order
Register Purchase Order Arrivals
Project Navigator/Supply/Inventory
Project Navigator/Supply/Reserved Material

Note: If you are using an executable containing IFS/Project together with IFS/Purchasing, you can quickly reach information about the purchase requisition or purchase order created from your project demand. In the Demand/Misc. Parts tab alternatively the Misc. No Parts tab, select the demand record of interest, right-click and click Purchase Requisition or Purchase Order.

Also when using such an executable, two more tabs will be available which show the information from the purchase requisition and purchase order lines connected to the activity. These additional tabs are Supply/Pur Req Lines and Supply/Pur Order Lines. You can work in these two tabs instead of opening the Purchase Requisition or Purchase Order windows.

Creating Project Purchase Requests

1. Open the Project Navigator window and query for your project.
2. In the Navigator, select the activity which has registered miscellaneous demand for which you would like to create a request.
3. Click the Demand tab, and then click the Misc. Parts alternatively the Misc. No Parts tab.
4. If the registered miscellaneous demand for which you would like to create a request is a part, check that the Supply Option field has the value Purchase.
5. Select the desired demand record, right-click and then click Create Project Supply Request.
6. The Create Request window appears. Click Create New.
7. Verify that a purchase requisition has been created. You can see this by checking that there is a value in the Purchase Requisition No field.
8. Note the other purchase requisition information. Also note that the Requested Quantity and Requested Date fields have been update.
9. Click the Connections tab and verify that the purchase requisition line is listed here as a connected object to the activity and that it is a system connection.
10. For this object, observe that the values retrieved to the Planned Committed column are based on the purchase requisition value. Verify that it updates the correct cost elements, based on how you set up the relevant posting control rule and cost element mappings. (When purchasing inventory parts, the posting control rule M1 is used. When purchasing non-inventory purchase parts and no parts, the posting control rule M93 is used.)
11. Click the Demand/Misc. Parts alternatively the Misc. No Parts tab again and select your demand record. Right-click and then click Purchase Requisition to open the Purchase Requisition window populated with the connected purchase requisition.
12. Click the Part Requisition Lines tab for purchase parts or the No Parts Requisition Lines for no-parts.
13. Look at the information in the Project ID and Activity Sequence fields to verify that the purchase requisition has been preposted with the correct project and activity sequence number.

Handling Project Purchase Requests

1. Continue in the Purchase Requisition window populated with your connected purchase requisition.

Note: Do steps 2-5 when procuring a purchase part.

2. Click the Part Requisition Lines tab.
3. Note that supplier from the demand row or the primary supplier is chosen, and that this supplier's supplier price is used to calculate the purchase requisition price.
4. Change the value in either the Quantity or the Wanted Receipt Date field. Save your changes.
5. A message appears that informs you that it is preferred to make the changes on the source project demand and asks if you would still like to save your changes. Click No. If you should click Yes, the changes would not be updated on the originating miscellaneous demand.

Note: Do steps 6-8 when procuring a no-part.

6. Click the No Part Requisition Lines tab.
7. Note that the planned cost that you entered in the Project Navigator/Demand/Misc. No Parts tab is shown in the Total/Base field.
8. If there was no supplier registered on the demand, connect a desired supplier to the no-part. Save your changes.

Note: The following applies to purchase requisitions for both purchase parts and no-parts.

9. In the header of the Purchase Requisition window, right-click and then click Release. An information message appears that says that the purchase requisition is to be released. Click OK.

Handling Project Purchase Orders

1. If you have not done so, you must release the relevant activities according to the Basic Data exercise above.

Note: Do the following steps to create and handle the purchase order, and to see the effects on the project activity.

2. Return to the Purchase Requisition window, populated with the desired purchase requisition.
3. Select the desired purchase requisition line, right-click, and then click Requisition to Order to convert the requisition to a purchase order. The Requisition to Order Parameters window appears.
4. Click Create New. The Purchase Order(s) Successfully Created window appears.
5. Click OK.
6. Return to the Project Navigator window populated with your project.
7. Select the relevant activity in the Navigator and click the Connections tab to verify that the purchase order line is listed here as a connected object to the activity. Also note that it is a system connection.
8. Click the Activity tab and observe that no values have been retrieved yet to the Calculated Cost Progress field or the Committed column on the Cost tab.
9. Click the Demand/Misc. Parts or the Misc. No Parts tab and check that the purchase order information is entered in the purchase order fields.
10. Select this miscellaneous demand record, right-click and then click Purchase Order to open the Purchase Order window populated with the connected purchase order.
11. In the header of the Purchase Order window, right-click and select Release to release the purchase order. A message indicating the release of the purchase order appears. Click OK.
12. Click the Connections tab again. Observe that the values retrieved to the Committed Cost column are based on the purchase order value.
13. Verify that these values update the correct cost elements, based on how you set up the relevant posting control rule and cost element mappings. (When purchasing inventory parts, the posting control rule M1 is used. When purchasing non-inventory purchase parts and no parts, the posting control rule M93 is used.)
14. Click the Activity tab. Note that the values in the Committed Cost column on the Cost tab have been updated correctly from the connected objects.
15. Return to the Purchase Order window. Right-click and then click Confirm to confirm the purchase order. A message appears indicating the confirmation of the purchase order. Click OK.

Note: Do the following steps to receive the purchase order into inventory, and to see the effects on the project activity.

16. Open the Register Purchase Order Arrivals window, and query for your purchase order number.
17. Select the order, right-click, and then click Receive Order. The Receive window appears.
18. The requested quantity appears by default in the Purchase Qty to Receive field. Enter the quantity that you would like to receive at this time.
19. If the item is an inventory part, click Receive into Inventory in the Receive Case list. In the Location No field, select your picking inventory location from the List of Values, to receive the items into inventory. Click OK.
20. If the item is a non-inventory purchase part or no-part, click Receive into Arrival in the Receive Case list. Click OK.
21. In the Project Navigator window, click the Connections tab. Observe that the connected miscellaneous demand line for the purchase order receives a progress of 100% if you have received the entire purchase order quantity.
22. In the Connections tab, also note the values in the Committed Cost and Used Cost columns for the connected purchase order object. As you receive the items, the Used cost will increase based the values of the created inventory or purchase transactions. The Committed cost will decrease proportionally to the number of items received.
23. Verify that these values update the correct cost elements, based on how you set up the relevant posting control rule and cost element mappings.
24. Click the Activity tab. Observe that the value retrieved to the Calculated Cost Progress field will also be 100%. 
25. Note also that the values in the Committed and Used columns on the Cost tab have been updated correctly from the connected objects.
26. Click the Demand/Misc. Parts tab. Verify that the material has been received by checking the Received Date and Received Quantity fields.
27. For inventory parts, click the Supply/Inventory and Reserved Material tabs to verify that the parts are found in the project inventory and reserved for the demand.

Note: The received purchase order can be matched to the corresponding supplier invoice. For inventory parts, the received material is now available to be issued to the project. By receiving the purchased parts, you have created an inventory or purchase transaction. When the corresponding vouchers are updated to IFS/General Ledger, you will be able to retrieve actual costs.

Note: For an example of activities with connected purchase requisitions and purchase orders, you can refer to the project P101 and the activities 20020 and 20040.

Using Project Addresses in Project Purchase Orders

Note: In order to use project addresses as a delivery address in project purchase orders you need to define them in the miscellaneous demands. See exercise for Using Project Delivery Address in Miscellaneous Demand in Registering Project Demand exercise.

1. Repeat the steps 1-5 in the above exercise for Handling Project Purchase Orders.
2. Go to the Project Navigator window and select the relevant activity node. Click the Demand tab, and then click the Misc. Parts. Alternatively you can click the Misc. No Parts tab for no parts.
3. Select this miscellaneous demand record, right-click and then click Purchase Order to open the Purchase Order window populated with the connected purchase order.
4. Select the purchase order line, right click and select Order Line Details and then Order Line Address for the part line. Alternatively Order Line Address option for a no part line.
5. This will open the Purchase Order Line Address dialog box.
6. You can see that the address defined in the project miscellaneous demand is used here. Since the address originates from the project the Project Address check box is selected.
7. Alternatively you can select a different project address from the list of values or with the Project Address check box cleared, select a company address as the delivery address of the line.