Procurement Tab

The Processing Options section displays the default values for procurement processing.

1. The Centralized Purchasing Department displays all departments. If purchasing is done in a central location, select the department that handles purchasing.

   If selected, all journals from the sub ledger will be assigned to this central department. If not defined, the post may make multiple journals, one for each department specified on a receipt batch.

2. If the Allow Changes to Approved Requisitions check box is selected, approved requisitions may still be edited. This check box is cleared by default.
3. If the Allow Changes to Approved Purchase Orders check box is selected, approved purchase orders may still be edited. This check box is cleared by default.
4. If the Allow Changes to Approved Changed Purchase Orders check box is selected, approved changed purchase orders may still be edited. This check box is cleared by default.
5. If the Print Requisition Prior to Posting check box is selected, users have the option to print the requisition before posting it. This check box is cleared by default.
6. If the Display Unprinted Purchase Order Numbers check box is selected, the purchase order number appears on the entry form, display screens, inquiries, and reports before the purchase order is approved. This check box is cleared by default.
7. If the Apply Approval Limits to Requested Items check box is selected, the approval limits will apply to each individual requisition line on the purchase order, instead of the total amount of the purchase order.
   
   For example, if the threshold was set to $5,000 to require the next level of approval, and there were 3 separate requisition lines of $3,000 each, the system would NOT require the second approval because no one line exceeded the $5,000 threshold. If the box were not checked and the total amount of the PO is $9,000, this exceeds the threshold and therefore the next level of approval would be required.
8. The Increment Counter Number Based on Fiscal Year check box determines the Counter Year sequence to use. If the check box is selected, the transaction number uses the fiscal year value as the prefix (i.e., Counter Year). If check box is not selected, the calendar year is used as the prefix.
9. Select the Email Purchase Orders check box if your organization plans to email purchase orders to any vendors. Additional setup needs to be performed to email purchase orders. See Email a Purchase Order for more information.
10. Select the Fax Purchase Orders check box if your organization plans to fax purchase orders to any of its vendors. Additional setup needs to be performed to fax purchase orders.
11. Select the Email/Fax Confirming Purchase Orders check box if your organization plans to send email messages or fax documents confirming purchase orders to any of its vendors. Additional setup needs to be performed to fax or email confirming purchase orders.
12. Select the Specify Discounts in Procurement check box if the organization wants to be able to define a discount for items in procurement processing.
13. If the Email Purchase Order Notifications check box is selected, then whenever a PO with a flagged PO type is either fully approved or posted, an email notification will be automatically sent to all appropriate recipients, i.e., approval users for fully approved POs and both approval users and vendors for posted POs, depending on how your purchase order types have been set up. For more information, including additional setup requirements for this feature, see Purchase Order Email Notifications.
14. Select a Maximum Open Blanket POs per Vendor value to restrict the number of blanket purchase orders that may be open for any one vendor. The default value is One per Vendor. The other options are: Multiple per Vendor, One per Department and Multiple per Vendor, No Restrictions.
15. Select a Requisition and Purchase Order Requests Sort Type value to define how requests should be sorted. The options are Alphabetical by Description and Entry Order. Alphabetical by Description is the default value.
16. Select a Requisition Validation and Approval Sequence value to define the method that should be used to validate and approve requisitions. This value determines the order of the validation and approval steps in the requisition process. The available options are:
    • Require Approvals for Validation–If selected, the requisition must be fully approved before it can be validated.
    • Require Validation for Approvals–If selected, the requisition must be validated before it can be approved.
    • Require No Dependencies–If selected, added requisitions can be validated and approved in any sequence.

17. Select a Purchase Order Entry Validation and Approval Sequence value to define the method that should be used to validate and approve purchase orders. This value determines the order of the validation and approval steps in the purchase order process. The available options are:
    • Require Approvals for Validation–If selected, the purchase order must be fully approved before it can be validated.
    • Require Validation for Approvals–If selected, the purchase order must be validated before it can be approved.
    • Require No Dependencies–If selected, added purchase orders can be validated and approved in any sequence.

18. When a requisition is returned from a higher approval level to a prior approval level, the Return Department Approved Requisition Approvals Action value defines what should be done with the existing approvals. The options are: Retain All Approvals and Cancel All Approvals. Retain All Approvals is the default value.
19. Select a value in the Use Change Purchase Order Reason and Text field to prompt the user with one of the following options when a change is made to a purchase order:
    • Not Used–When a change is made, no message appears and the user can make changes.
    • Optional–A warning message suggests that the user provide a reason for the change. The user can choose not to provide a reason, click Accept, and continue with the update.
    • Required–An error message alerts the user that a reason code must be supplied in order to save the update.

Use the Requisition Promote Defaults section to specify the defaults on how documents and notes are handled when a requisition is promoted to a purchase order.

1. Select the Copy Notes check box if notes on the requisition should become part of the purchase order.
2. Select the Copy Documents check box if notes on the requisition should become part of the purchase order.
3. Select the Copy Remote Documents check box if notes on the requisition should become part of the purchase order.

Use the Contract Accounting section to define how the contract accounting module works in your environment:

1. The system can be set up either to sequentially number contracts or to allow the user to manually enter the number during the Contract Preparation process. Select the System Assigned Numbers check box if you want the system to automatically assign the contract number by incrementing the previous contract number by 1. The format of the system-assigned number is XXXX-XXXXXXXX. The first four digits represent the Counter Year (e.g., 2008). The last eight digits represents the counter number (e.g., 1, 2, 3, etc.).
2. When using a system-assigned number, the Increment Counter Number Based on Fiscal Year check box determines which Counter Year sequence to use. If the check box is selected, the contract number uses the fiscal year value as the prefix (i.e., Counter Year). If this flag is not selected, the calendar year is used as the prefix. The system uses the Contract Start Date as the determining date of the Counter Year. More For example, an organization has a fiscal year ending 6/30. The Increment Counter Number Based on Fiscal Year check box in System Settings is selected. A contract with a Contract Start Date of 8/1/2008 is added. The system assigns the next available contract number beginning with the year 2009. It uses the value associated with the fiscal year in which the Contract Start date falls. If the Increment Counter Number Based on Fiscal Year flag in System Settings was not selected, the system would use the value associated with the calendar year in which the Contract Start date falls, or 2008.
3. Select a Validation and Approval Sequence value to determine the use and order of these two steps of the workflow process. The options are: Require Approvals for Validation, Require Validation for Approvals, and Require No Dependencies. The default value is Required Validation for Approvals. If a dependency is required, the workflow buttons display in the order of the dependency.
4. The Require Alter Reason check box determines whether a reason must be supplied for altering a contract. If the organization wants to require a reason for altering a contract, select this check box. Altering any value in the contract record creates an entry for the contract; requiring the reason can help reduce accidental entries, and thus unnecessary records in this process.
5. The Allow Changes to Approved Contracts check box determines whether changes can be made to a contract once it is approved. If this check box is not selected, approved contracts may not be edited.
6. The Allow Changes to Approved Contract Amendments check box determines whether changes can be made to a contract amendment once it is approved. If this check box is not selected, approved contract amendments may not be edited.