External Vendor Procurement Main Processes As-Is
Purchasing Order Main Process
Bid Main Process
Begin
Begin
Create
Encumbrance
Prepare Bid
Requisition
Auditing
Publish Bid
Create POs
System Process
of POs &
Related Files
Evaluate &
Award Bid
Create
CORs
End
End
Last Updated: October 15, 2002
1
External Vendor Procurement Processes As-Is
Create Encumbrance
This process map depicts the
basic approval process of
encumbrance. Actual
process may vary by
departments or divisions.
Begin
Dept.
Authorizes to
Create
Requisitions
Return to
Procurement
Main Flow
Dept. Fills
Out Req.
Form
Dean’s/Dept Office
Enters Req. # and
Funding in 3270
(EPRQ)
Dept. Chair
Approves
Requisitions
Dean’s/Dept
Office Create
Encumbrance
Last Updated: October 15, 2002
Route
Requisitions to
Dean’s Office
Dean’s Office
Reviews &
Approves Req.
2
Pre-Audit
Requisition Auditing
Receive
Requisitions
from Dean’s
Office
Begin
Verify Class
Code is
Appropriate
for Item
Verify
Description Is
Complete
Verify
Accompanying
Documentation
Return to
Dean’s
Office
No
Verify Both
Dept. & Dean’s
Approvals
Verify Req. Is
for UW
Business
OK?
Yes
Return to
Procurement
Main Process
Verify
VO Entry
OK?
System Generates
Voucher,
Remittance Copy,
Prelist in CARDS
Route Reqs.
To
Purchasing
Other
Requisitions.
Approve
Requisitions
Postage Req.
Fund 133
Class Codes
4Ks, 2Ks, 3221,
3227 & 3228?
Create VO
in VPAM
No
Confirming Req
w/ Invoice
Attached
(<$5,000)
Yes
Editing &
Check
Printing
Distribute
Checks
Route to
RSP
RSP
Reviews &
Approves
Class Code
4Ks?
Yes
Property
Control
Returns
Req.
No
Correct
in VPAM
No
Yes
Property
Control
Verifies
Req.
End
Last Updated: October 15, 2002
Reference Original
Equipment PO # and
Property Control # if
Purchase is a Component
of Capital Equipment.
Route 4Ks
& 2Ks to
Purchasing
Issue Other
Reqs. Under
RSP
Negotiated
Contracts
3
End
External Vendor Procurement Processes As-Is
Create Purchase Orders
EPRQ: Fund,
Account, UDDS,
Activity, Class
Code.
Begin
Legacy System
Nightly Loads
Req. File to
Purchasing
System
Purchasing Enters
Remaining Req.
Form Data to
Purchasing System
Note: At beginning of
each month, the legacy
system loads funding
source and expiration
dates to the Purchasing
System.
Purchasing
System Updates
Vendor File
Purchasing
Assigns Req.
to Purchasing
Agent
Reqs. Under
$5,000 or from
Delegated Agent
Purchasing
Creates Req. in
Purchasing
System
All Other
Reqs.
Return to
Procurement
Main Process
Agent or Prog.
Assist.
Releases PO
Agent Defines
Invoice/PMT
Handling
Agent Creates
PO from Req.
in Purchasing
System
Order
Status = R
Last Updated: October 15, 2002
Wait for
Vendor
Response
Purchasing
Agent Reviews &
Sources Vendor
•Bid
•Quote
•RFP
•Waiver
•Contract Processes
4
External Vendor Procurement Processes As-Is
System Process of POs and Related Files
Cancelled,
Closed or NonExist Reqs.
Begin
Purchasing
System Nightly
Prints POs at
DoIT
Purchasing
System Loads
Updated Vendor
File to Legacy
(ADDI)
Purchasing
System Loads
PO File to
Legacy (INQP)
Legacy System
Populates Legacy
Tables Used by
Accrual Accounting
(INQP)
List of Reqs with
over ±$100
Variance
To vendor, Dept.
Accounting, etc.
Return to
Procurement
Main Process
Legacy System
Creates Req.
Error Report
Distribute
PO Copies
No
Vendor
File Load
Error?
Legacy System
Creates Entry
Change Report
Yes
Legacy System
Creates Vendor
File Load Error
Report
Last Updated: October 15, 2002
5
COR is automatically
generated by Purchasing
System at a time
coinciding with the end
date for a contract order
or a specific vendor/open
vendor blanket order.
Begin
External Vendor Procurement Processes As-Is
Create Continuing Order Requisitions (COR)
Purchasing
System
Generates COR
(Five times a
year)
Dean’s Office
Approves and
Enters on EPRQ
Purchasing
Routes Copies
of COR to
Departments
Department
Routes to
Deans Office
Department
Reviews COR
Advantage of a COR is that the
Department and Purchasing do
not have to re-enter all the data
for a requisition, just the changes.
The CORs are issued quarterly
and at Fiscal Year-End.
NO
COR Still
Needed?
Department
Discards CORs
YES
Dept. Chair
Approves COR
Dept. Routes to
Chair
Stop
Department
Edits COR
Copy old req. to new req.,
assign a new req. number
and corss-reference
between old & new req
numbers in the system.
133 or 144 Funds
With Special
Class codes?
NO
Dean’s Office
Routes to
Purchasing
Legacy Updates
Oracle Funding
Table in
Purchasing System
Purchasing
Creates New Req
from Old Req
NO
Purchasing Agent
Reviews & and
releases Order
YES
YES
Dean’s Office
Routes to RSP
OK to
Release?
RSP Reviews
and
Approves
RSP routes to
Purchasing
Purchase
Orders
Distributed
next day
Return to
Procurement
Main Process
LastUpdated:
Updated:September
October 15,
Last
20, 2002
2002
66
External Vendor Procurement Processes As-Is
Additional Information
•
•
Additional Order Information
– Use of Commodity Code on each order line
item
– PO Type assigned to each PO (Types of
contracts, blanket POs, pricing method etc.)
– Purchase Authority by PO (Waiver,
Contract, etc.)
– Print Format Type (Also drives payment
process)
– Positive or negative approval of invoice
– Freight destination code (Could be defined
at order line)
– Payment terms
– Stored text messages
– Reference PO to contract number (via
Authorization, no direct link)
– Vendor Number.
Triggers of Change Orders
– Department request
– Invoice amount (Accounting routes invoice
to Purchasing, who reviews with
department for approval.)
– Vendor request due to item change or price
changes.
Return to
Procurement Main
Process
•
•
•
•
Vendor Addresses
– Remit to address
– Bid address
– Order address: This is loaded to the legacy
system.
Purchasing Agent Information
– Purchasing Agent information is used as
source data by INQP. It is entered directly
to TREV (Buyer) in the legacy system by
Purchasing every time a new Purchasing
Agent is hired. The Accrual Accounting
System uses this data to link a PO to a
buyer.
Receipt of Goods
– No receipt documents
– Evidence of receipt is not required for
payment processing
– No RMAs.
Vendor Names
– A vendor may use one name on PO and
another on invoice;
– A vendor name may have alias;
– Matching of vendor names is a manual
process.
Last Updated: October 15, 2002
7
page 1 of 3
University of Wisconsin - Madison
Macro View Sealed Bid Process
External Vendor Procurement Processes As-Is - Prepare Bid
Program
Area End
User
Identifies
Need
Presents need
to dept. bus.
mgr.
Department
Business
Manager
Reviews
Need
Draft bid,
prop. eval
procedures
Creates
purchase req
w/ bus. mgr.
Does it
qualify as a
bid?
No
Yes
End of
Process
Draft bid,
prop. eval
procedures
Creates
purchase req
w/ end user
Purchasing
Services
Draft bid,
prop. eval
procedures
Enters Data
into Oracle
Purchasing
System
Collect
purch.
req., prop.
eval. proc.
info
A
No
Accounting
Pre Audit
Requisition
Grant
Award?
Yes
Grant review
process
State
Journal
VendorNet
Vendor
Return to
Procurement Main
Process
Evaluation
Committee
Legend:
Process
Manually created
document
Electronically
created document
Manual
operation/
process
Manual Input
Terminator
Stored data
Off-page
connector
Decision
Last Updated: October 15, 2002
8
University of Wisconsin - Madison
Macro View Sealed Bid Process
page 2 of 3
External Vendor Procurement Processes As-Is - Publish Bid
Program
Area End
User
Department
Business
Manager
Purchasing
Services
Place bid
notice in
State Journal
Identify/send
bid to
vendors
A
Sends bid to
vendor
Accounting
State
Journal
Publishes bid
notice
Yes
VendorNet
Reads
bid
notice
Vendors
receives bid
Responds
to notice?
Obtains
bid
Respond
to bid?
Yes
Vendor
No
End of
Process
No
Prepare
response
to bid
B
End of
Process
Return to
Procurement Main
Process
Evaluation
Committee
Legend:
Process
Manually created
document
Electronically
created document
Manual
operation/
process
Manual Input
Terminator
Stored data
Off-page
connector
Decision
Last Updated: October 15, 2002
9
University of Wisconsin - Madison
Macro View Sealed Bid Process
page 3 of 3
External Vendor Procurement Processes As-Is – Evaluate & Award Bid
Program
Area End
User
Department
Business
Manager
Receives
responses
from vendors
Purchasing
Services
Opens
responses
on bid
opening
date
Forward
response
evaluation
committee
Creates
purchase
order
Makes
vendor
award
Purchase
order to
vendor
End process
Accounting
State
Journal
VendorNet
Mail response
to purchasing
office
B
Vendor
Receives
purchase
order
Evaluation
Committee
Receives
& reviews
responses
Makes award
recommendation
Legend:
Process
Manually created
document
Electronically
created document
Manual
operation/
process
Manual Input
Terminator
Stored data
Off-page
connector
Decision
Last Updated: October 15, 2002
Return to
Procurement Main
Process
10