Awarding Sub Contract—Extended Exercises

Basic Data Setup

Reason Code

Purpose: The purpose of this exercise is to show you how to register a reason code.

Windows:
Sub Contract Basic Data/Reason Code

  1. Enter the reason code that should be associated with your sub contract, if it has not already been created.
  2. The reason code ID to use is XXPR, where XX are your initials. The description of the reason code is Best Price.

General exercise for Sub Contract Basic Data and Requirements

Supplier

Purpose: The purpose of this exercise is to show you how to set up a supplier in the system.

Windows:
Supplier

  1. Open the Supplier window.
  2. Create the supplier(s) that should be associated with your sub contract, if it has not already been created.

General exercise for Supplier Setup

Purchase Part

Purpose: The purpose of this exercise is to show you how to create a non-inventory purchase part.

Windows:
Purchase Part

  1. Open the Purchase Part window.
  2. Enter the purchase part that should be associated with your sub contract, if it has not already been created.

General exercise for Purchase Part

Buyer

Purpose: The purpose of this exercise is to show you how to enter a buyer in the system.

Windows:
Procurement Basic Data/Buyers

  1. Open the Buyers window.
  2. Enter yourself as a buyer.
  3. Save the changes (F12).

General exercise for Buyer

Document Class

Purpose: The purpose of this exercise is to show you how to set up document classes in the system.

Windows:
Document Basic/Document Classes

  1. Open the Document Basic window.
  2. Click the Document Classes tab and create a new record (F5).
  3. Create the document class XX-LETTER, where XX are your initials. The document class description is Rejection Letter.

General exercise for Document Basic

Request for Order Quotation

Purpose: The purpose of this exercise is to show you how to enter a request for order quotation. This will be the standard RFQ (Request For Quotation) that is to be connected to your sub contract.

Windows:
Request for Order Quotation

  1. Open the Request for Order Quotation window.
  2. Create a new record (F5).
  3. Make sure to enter the correct Site.
  4. In the Buyer ID field, enter your user ID.
  5. Enter the Latest Reply Date and Currency.
  6. Save the information (F12).
  7. Enter a request line with the desired part number.
  8. You must also enter the Quantity, Purch UoM and Wanted Delivery Date.
  9. Enter the suppliers, to whom invitations to tender were submitted, in the Suppliers tab.
  10. Release the request for order quotation by right-clicking the header and then clicking Release.

General exercise for Entering Request for Order Quotation

Required Data

Submitting Invitation to Tender

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

  1. Submit invitation to tender to the supplier(s).

General exercise for Submitting Invitation to Tender

Main Exercise

Purpose: The main purpose of this exercise is to show you how to award a sub contract to the most suitable supplier. Once invitations to tender are submitted to prospective suppliers, and tender response is received, you need to enter tender details on the sub contract. This includes, creating the connection to a valid RFQ that exists in IFS/Purchasing. The RFQ is used to document tender response, i.e., supplier quotation information, perform a comparison of all supplier quotations and select the best supplier for the work. (The comparison is performed based on the selection criteria previously defined by the company.) The sub contract is then awarded to the selected supplier. With IFS/Purchasing it is possible to print rejection letters that are to be submitted to suppliers that were not chosen. In this lesson we will also learn how to create a rejection letter using IFS/Document Management and connect it to the suppliers on the sub contract. 

Prerequisites: IFS/Purchasing and IFS/Document Management must have been installed.

Windows:
Sub Contract
Order Quotation
Order Quotation Approval
Document Revision

Entering Tender Details

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the necessary sub contract.
  3. Click the Supplier tab.
  4. In the upper table, select the supplier to whom an invitation was previously submitted.
  5. In the lower table, enter tender details for the selected supplier.
  6. In the Tender Received Date field, enter the date on which the tender was received from the supplier.
  7. In the Request for Quotation No field, enter the standard RFQ number.
  8. In the Note field, enter any additional information, if required.
  9. Save the information (F12).
  10. Repeat steps 4 to 9 for each supplier that is connected to the sub contract and has submitted a tender response.

Comparing Received Tenders using IFS/Purchasing

Note: The exercise below will show you how to enter quotation (tender) information, such as price and services received from the suppliers.

Prerequisites: The RFQ must have been created >>.

  1. Open the Order Quotation window.
  2. Populate (F2) or query (F3) for the necessary RFQ. Note that you will get one or more records depending on the number of suppliers that are connected to the RFQ.
  3. For each supplier, enter the quotation information you received.
  4. Save the information (F12).
  5. Next, open the Order Quotation Approval window and query (F3) for the RFQ number.
  6. Compare the quotations.
  7. Approve the most suitable supplier, e.g., the supplier with the best price.

Note: You can choose to print rejection letters, for the suppliers that were not chosen, now or at a later stage.

Awarding Sub Contract

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the necessary sub contract.
  3. Right-click anywhere in the header, point to Status and then click Award. The Award Sub Contract dialog box opens.
  4. In the Reason ID field, enter XXPR, where XX are your initials.
  5. In the Supplier ID field, enter the supplier to whom the sub contract is to be awarded.
  6. Click OK.
  7. Verify that the sub contract is in the Awarded status. The ID of the supplier to whom the sub contract was awarded appears automatically in the Supplier ID field found in the header of the window.

Submitting Rejection Letters

Note: The exercise below will show you how to print a rejection letter using the functionality available in IFS/Purchasing. Once the rejection letter is printed it is ready to be submitted to the supplier(s). In this exercise, we will also learn how to connect a rejection letter to the supplier on a sub contract by creating and connecting the document using IFS/Document Management.

Prerequisites:

The RFQ must have been created >>.
The document class must have been defined >>.
Adobe Acrobat Reader must have been installed.

 

Print Rejection Letter:

  1. Open the Order Quotation Approval window.
  2. Query (F3) for the RFQ number.
  3. Select the supplier to whom a rejection letter is to be sent, right-click and click Print Rejection Letter.
  4. Optionally, click Preview to view the rejection letter before printing.

Note: It is possible to connect this rejection letter to the supplier. To do this, the letter must first be registered in IFS/Document Management. In the Preview window click Save a Copy, and save the file under the C:/Temp directory.

  1. Click OK. The rejection letter is printed out on your default local printer.

Create Document:

  1. Open the Document Revision window.
  2. Populate (F2) or query (F3) for the document class XX-LETTER, where XX are your initials.
  3. Right-click anywhere in the header, point to File Operations and then click Check In Document. -
  4. Browse to the C:/Temp directory, and click ACROBAT in the File Type list. Select the rejection letter, and then click Open.

Connect Document to Supplier:

  1. Open the Sub Contract window.
  2. Populate (F2) or query (F3) for the necessary sub contract.
  3. Click the Supplier tab.
  4. Select the supplier to whom the rejection letter is to be sent.
  5. Click Attachments on the task pane.
  6. Create a new record (F5) and specify the document class, number, sheet and revision of the document you want connected.
  7. Save the record (F12).