Purchase Requisitions

Owned by Daniel Akers
Last updated: Dec 10, 2024 by Bao TRINH
5 min read

Module Overview:

The Requisitions module gives you the ability to manage the creation of a Purchase Requisition, the Review and Approval of the Purchase Requisition, and converting this into a standard Workbench Purchase Order.

The overall purpose is to separate the functions of "Requisitioning," i.e. "I need these goods or services, can someone please buy them" from the actual "Purchasing" process, i.e. "I need to raise a PO for these goods or services." The Requisitioning process is more suitable to be initiated by a larger group of people than the Purchasing process.

Requisitions contain very similar data to POs, meaning data does not need to be entered again once the Requisition process is complete. An Approved Purchase Requisition will have all the data required to create an approved PO.

The Purchase Requisition process allows for user-defined multi-step Workflows allowing both Review and Approval.

There may be multiple user-defined types of Review e.g. Value and Technical Reviews. Value Review has cost limits, while Technical Review does not have value limits. Each Review Type may be sequential (e.g. in ascending value order) or simultaneous (the Technical Reviews may be done in any order)

There can only be a single Approver of any Purchase Requisition, based on value limits. Approval takes place only after the defined Reviews have taken place.

The specific Reviewers and Approvers are defined in Workflow Schemas defined by the user. These Schemas are applied to a Purchase Requisition via its Job, derived from settings for the PR type, the Job, the Profit Centre of the Job or the Financial Company of the Job.

The generation of the Workflow is by exception; if there is not setup for the selected Job use the settings on the Profit Centre of the Job.

Options are provided to Decline, Cancel, or return the Purchase Requisition to the Requester for change.

Once a Purchase Requisition is Approved it may be converted to a Purchase Order by a user with the Procurer Role. The created PO can automatically be Approved based on the Purchase Requisition having been Approved and the setting of the 'PO Creation type'. 

A Purchase Requisition may be split across one or more Purchase Orders.

Stock Requisitions are consolidated in their own module.

Features:

• Delegations to Alternate Reviewers or Approvers

• Internal messaging function throughout the process

• Email reminders (immediate for review/approvals and scheduled-assigned to Editor Role)

• Audit Trails for key field changes (Job Code, Cost, Quantity, Item Details, Supplier and Activity)

 

PO CreationTypes:

Set up necessary PO CreationTypes to determine the outcome of the requisition.

Workflow Types:

  • "Workflow Type" is Workflow Schema attribute. The main purpose is to allow the creation of multiple schemas for the same Financial Company, Profit Centre, or Job, with different approval steps.

  • These types are maintained and created from Workflow Types.

  • This is optional to have; Workflow Schemas don't need to have a Workflow Type if there is no need.

Workflow Schemas:

Create appropriate schemas for your company's requisition and approval process.

Requisition Roles:

Assign the appropriate roles to Users based on the functions they will be performing.

  • Requester – the person creating the PR for the goods or services required by the “Requested For Person”

  • Editor – the person who checks on the PR data before submission for review and approval

  • Technical Reviewer – the person who does the “ad hoc” review for technical reasons without imposition of the value authority levels.

  • Value Reviewer – the person who reviews the PR before it can be approved.

  • Approver – the person who approves the PR before it can be turned into a Purchase Order

  • Procurer – has the authority to turn an Approved PR into PO

  • Workflow Administrator – the person who oversees the approval activities for different documents in the organisation

  • Purchase Requisitions Administrator – the person who manages the Purchase Requisitions and has access to all functions in PR Creation, Review, Approval and PO Creation

Requisition Permissions:

These permissions are included in the above Roles based on their intended function.

 

 

  • Purchase Requisitions or PR – the document which users fill-up to purchase goods or services for a specific job.

  • Workflow Schema – contains the workflow review and approval steps in which the PR undergoes before a PO is created. It defines Entities (Profit Centre or Job) where the workflow steps are applied to

  • Purchase Authorisation Limit – the maximum amount that a Reviewer or Approver can approve

  • Technical Review – the functional person comments and reviews the PR.  This does not require authorization limit.

  • Technical Review Group – the classification of the group or person conducting the Technical Review. E.g. Electrical, Mechanical

  • Value Review – a Finance related review dependent on authorization limit of the reviewer

  • Approval – Mandatory final step of the review/approval process before a PR is sent for PO Creation

  • Purchase Requisition Header – general details about the PR such as description, PR Type, Requested by.

  • Header Job – Job Code and Description which is one of the basis for the workflow review/approval process

  • Purchase Requisition Line – contains the item details ordered such as quantity, cost, line job (can be subjob of header job)

  • Request Status – determines the PR condition.  Status are the following: New, Saved, Assigned, In Progress, Approved, Declined, Cancelled, Sent Back, Purchase Order Created, Purchase Completed, Purchase Discontinued, Partial PO Created

  • Workflow Action – determines the reviewer or approver action on a PR.  E.g. Reviewed, Approved, Sent Back, Decline, Pending (for review/approval)

  • Tolerance level – used during PO creation to determine the maximum allowable amount of increase in cost that the Procurer can adjust to without the need for re-approval.  This is checked per line item in the PR and is computed either on percentage or amount limit.

 

Child Pages:

FAQs:

Process Flow: