PROCUREMENT CONNECTION
OCTOBER 15, 2008
9:00 AM to 11:00 AM
1
Technical
Item 1: Proper procedure to liquidate SRM
documents.
1. Reduce the line item quantity to that which has
been received and invoiced on the line item.
2. Go to statistics tab in the line item detail
• Check no more confirmations check box
• Check no more invoices expected check box
3. Hit the order button.
2
Technical
Item 2: What is the proper process for
moving estimated quantities from one line
item to another on a PO?
– Receive error message “Payment Exceeds
Budget”
3
Technical
Item 3: Can you bypass system workflow on
special delegations?
Answer: OGC & OAG approvals are required on
contracts for Executive Agencies therefore
the approval cannot be skipped in the
system regardless of special delegation.
4
Technical
Item 4: Why would an agency shopping cart that
was put on hold route to DGS for processing
without agency approval of the cart?
–
–
5
–
The proper product category is being used.
The dollar threshold does not require DGS
processing.
Some but not all line items route to DGS.
–
Examples: 10484726 & 10495760
Technical
Item 5: Invoicing Plans: Why can't the purchasing
agent check the delivery box and enter the
serial numbers into all PO's issued for the
lease of a MFD from the Ikon contract once the
machine is delivered?
–
–
–
6
Comptroller indicates that each PO must be done at
the beginning of each appropriate fiscal year.
How would the system spend 09 money in 08 if
done ahead of time?
If an agency forgets to update a PO who would the
supplier call regarding payment? Agency,
comptroller, DGS?
Technical
Item 6: MRP & Inventory Purchases
7
Material Requirements Planning Overview
Purpose of today’s overview:
• Provide an understanding of MRP & its use
• Provide information for use when making
purchasing decisions
• Clarify misconceptions regarding the methods of
procurement for inventory
Material Requirements Planning (MRP)
8
9
Inventory & MRP Facts
• MRP use is limited for the Commonwealth
• MRP Process Plans, Creates Planned Orders, Converts Planned Orders
into Requisitions, and Creates Purchase orders
• Takes into consideration such things as re-order point, prior and future
consumption, replenishment, lot size, lead-time and use
• In order to use MRP an agency must have an established MRP
Controller, Inventory Planner, and material masters set up for MRP
requirements.
• Material masters should be listed as contract line items when a
statewide or agency contract is created
MRP does not simply mean “an order for inventory”
- MRP is a process -
10
High Level Process Flow - Inventory via MRP
Inventory
Planner
Inventory via MRP Process (High Level)
Execute MRP
Stock below
Reorder Point?
No
Yes
Create Planned
Order(s)
Convert to
Purchase
Requisition
Follow
established
process for
procurement
Receiver
Approver
Purchaser
End
Create PO
Issue PO to
Vendor
Approve PO
(If required)
Receive into
Inventory Stock
(MIGO)
11
High Level Process Flow - Inventory Non-MRP
Agency
Approver
SRM
Requisitioner
Inventory via Normal Process (non-MRP)
Create
Shopping
Cart as Direct
Material
Approve or Reject
Cart
Make necessary
changes as
requested by
approver
Reject
Receiver
Comptroller
Approver
Purchaser
Approve
Follow
established
process for
procurement
Issue PO to
Vendor
Create PO
Approve PO
(If required)
Receive into
Inventory Stock
(MIGO)
12
Inventory Purchases
• There is a misconception that SRM cannot
be used to order inventory items – SRM
can be used to order inventory
• Many contract replication requests use the
justification “MRP”
– 4600010375 with Hershey Creamery for Ice
Cream
• Only Corrections ordered for inventory and PO’s
were not generated through MRP
• No need to maintain contract in both places –
should be SRM only
13
SRM for Inventory
• SRM can be used for inventory purchase orders
not procured via the MRP process
• After the product ID (material master) has been
entered the “Order as Direct Material” indicator
appears:
If non-valuated, use normal process - account assignment is required14
Technical
Item 7: Is there a way to allow shopping carts to be
modified after they are fully approved?
–
–
–
–
15
Sole Source/Single Source – many times DGS
wants changes made to the carts or additional
documents attached.
Requires a whole new cart
Creates additional work
Increase the processing time waiting for new cart to
be created and approved.
Technical
Item 8: Full product category descriptions are not
visible in SRM/SAP and as a result the wrong
categories are being selected.
–
–
–
16
The system will not stop a PO that has an incorrect
product category.
What is the reason behind needing a specific
category?
Is it because of reporting of usage in BW?
Legal
Item 9: What is the definition of subscription”?
Item 10: What are the roles of OAG, OGC &
Agency Legal Counsel in the contract approval
process?
Item 11: What is a Request for Expression of
Interest (RFEI)?
17
Business Process
Item 12: Contract attachments
• DGS compiled list of contract attachments
• Used by Commodity Specialists
• Minimum requirement for RTKL
• Internal files listed are for DGS purposes
• Optional use by agencies
• Questions: Susan Rojas
–
18
717-346-8176 or srojas@state.pa.us
Business Process
Contract Attachments Continued
•IFB Contract Attachments
(Multi Award Hierarchy
Contract)
–Electronic Bid utilizing doc
builder
–eMarketplace
–Internal File
•RFP Contract Attachments
(Paper Submittal not using
Doc Builder)
–SRM
–eMarketplace
–Internal File
19
•IFB Contract/Purchase
Order Attachments
–SRM
–eMarketplace
–Internal File
•RFP Contract Attachments
(Using Document Builder)
–SRM
–eMarketplace
–Internal File
Location:
http://www.portal.state.pa.us/portal/server.pt?open=512&objID=1487&&PageID=469679&level=4&css
=L4&mode=2&in_hi_userid=161031&cached=true
Business Process
Item 13: SRM Supplier -901 Business Partner
• R3 Transaction XK03
• Enter supplier number, check partner
functions box & hit enter
• Supplier partner data is displayed
• The -901 business partner indicates they are
registered in the PA Supplier Portal
20
Business Process
Item 14: Assignment of Payments
• Contract supplier authorizes assignment of payment to another
party.
• CVMU creates a “902” Partner Record within the suppliers
master data.
– To request a “902” Partner Record - purchaser must:
• Complete “902” Partner Record Request form (found under
Procurement Forms on the DGS website)
• Request must include the following info:
–
–
–
–
Complete name and address of Assignee
Vendor number of the Assignee
Signed letter from the Assignor documenting the assignment of payment
Must be on Assignor’s letterhead
• Multiple Assignees require separate request forms for each
• Submit documents to CVMU Resource Mailbox at ra-co-bfmcvmu@state.pa.us.
• If approved, the Partner Record will be created. If disapproved, the
form will be returned to the requester with the reason for rejection.
21
Business Process
Item 15: SRM Helpdesk
• There is an option to leave a message
• If line continues to ring with no answer
– Hang up and call the number again
22
Business Process
Item 16: Contract Change Notices
• Weekly notice sent by Sue Plecker
• High profile contracts or changes
– Special notice is sent
• If a change notice was posted on the
website and not included on the weekly
Contract Change Notification it was an
oversight
23
Business Process
Item 17: .xml Invoices that Error Out
Two reports
• Weekly IDOC Report is provided to the Commodity
Specialist by IES
– Shows what went wrong with the invoice
– Commodity Specialist provides instruction to the supplier to
correct the error
• Cancellation Report – run by the Commodity Specialist
– Shows cancellations initiated by the comptrollers
– Commodity Specialist contacts comptrollers to discuss issues
– Commodity Specialist works with supplier and comptroller to
correct issues
24
Non-Agenda Items
Additional Information
25
Additional Information
SRM/SAP System Upgrades & Support Packs
Upgrades
ERP 6.0 Upgrade
• Effects all systems including ESS
– Cut-over dates for system unavailability
• PA Supplier Portal: Thursday, October 30th 5:00
PM thru November 3rd 6:00 AM
• MyCommonwealthWorkplace: October 31st 4:00
AM thru November 3rd 6:00 AM
• .xml Supplier Transmittal of Invoices: Thursday,
October 30th 5:00 PM thru November 3rd 6:00 AM
26
Additional Information
SRM/SAP System Upgrades & Support Packs
Support Packs
• What is a Support Pack?
– Support packs contain all the current “fixes” from SAP in one bundle
rather than applying individual notes on an as needed basis.
– Support packs normally fix things, but on occasion may create a
problem.
– IES will do testing of the Support Packs
• All changes as a result of the support packs should be found at this time and
IES will communicate this information to the agencies.
– If end users notice anything different in the core or SRM systems once
the support packs are put into production they should report the issue
through the helpdesk/remedy ticket process.
• Tentative Schedule for Latest Support Packs:
– Development - November 10, 2008
– Quality - November 17, 2008
– Production - December 6, 2008
27
Additional Information
System Updates
• Guid Error – Public Advertising Supplier
– The contact information for the “public advertising supplier” was
deleted from the vendor record in error
– This caused a “Guid” (Globally Unique Identifier) error on bids
created prior to 8/12/08 using the “public advertising supplier”
– This error is undetectable until workflow is initiated
– This error is uncorrectable
• Resolution
– The “public advertising supplier” record was corrected
– Do not reuse or copy a bid created prior to 8/12/08
– Create a new bid
28
Additional Information
System Updates
PO Pricing
• Line Item Detail (R3 only)
• Valuation setting default is “do not adopt”
• Requisitioners should not change this setting
• Setting is necessary to insure contract pricing is
pulled into the PO
29
Additional Information
Supplier Enablement - ERS
Evaluated Receipt Settlement (ERS)
• A shortened, easier process to pay suppliers
– Eliminates need for issuing and processing invoices
– Upon receipt of order, receiving agency enters GR
– Overnight process generates an electronic invoice
– 2-way match: PO quantity & GR quantity
– Treasury processes payment via ACH
• No action is needed by the comptroller
• Supplier did not have to submit a paper invoice
• Turnaround time for payment is reduced
• Goods Receipts must be done timely!
30
Additional Information
Supplier Enablement - ERS
Evaluated Receipt Settlement (ERS) - Pilot Program
• Started September 10, 2008
• Suppliers:
– Todd Heller, LLC -Contract 4600013343 Glass Beads
– Ennis Paint, Inc. –Contract 4600010851 Traffic Line Paint
• Agency: Transportation
• Current activity: 2 POs were created and payments were
successfully processed
• End of paint season – not much activity anticipated
• Investigating expanding the pilot to include:
– Calcium Chloride
– Rock Salt
– Corrugated Boxes
31
Additional Information
Supplier Enablement – Punch-outs
Punch-out Catalogs
• Staples – Office Supplies
– Development is in process
– Anticipated completion early January
– Pilot program to test punch-out with 1 or 2 agencies
• Graybar
– Supplier has expressed an interest to do a punch-out
– Initial meeting with supplier to be scheduled
32
Additional Information
Supplier Information
• Informational Brochures
• To assist agencies in providing guidance
to their suppliers
– Supplier Response To A Solicitation
– Registering As A New Supplier
– Registering As An Existing Supplier
33
Closing
Questions?
Thank you
34