Last Updated: October 15, 20021 External Vendor Procurement Main Processes As-Is Purchasing Order Main ProcessBid Main Process Requisition Auditing Create

Last Updated: October 15, 2002 1

External Vendor Procurement Main Processes As-Is

Purchasing Order Main Process Bid Main Process

Requisition Auditing

Create POs

System Process of POs &

Related Files

Begin

End

Prepare Bid

Publish Bid

Evaluate & Award Bid

Begin

End

Create Encumbrance

Create CORs


External Vendor Procurement Processes As-Is

Create Encumbrance

Dept. Chair Approves

RequisitionsBegin

Route Requisitions to Dean’s Office

Dean’s/Dept Office Enters Req. # and Funding in 3270

(EPRQ)

Dept. Authorizes to

Create Requisitions

Dept. Fills Out Req.

Form

Dean’s Office Reviews &

Approves Req.

This process map depicts the basic approval process of encumbrance. Actual process may vary by departments or divisions.

Dean’s/Dept Office Create Encumbrance

Return to Procurement Main Flow


Pre-AuditRequisition Auditing

Receive Requisitions from Dean’s

Office

Begin

OK?

Verify Class Code is

Appropriate for Item

Verify Description Is

Complete

Verify Accompanying Documentation

Verify Both Dept. & Dean’s

Approvals

Verify Req. Is for UW Business

Approve Requisitions

Return to Dean’s Office

Fund 133 Class Codes

4Ks, 2Ks, 3221, 3227 & 3228?

Route to RSP

RSP Reviews & Approves

Class Code4Ks?

Property Control Verifies

Req.

Property Control Returns

Req.

Postage Req.

Confirming Req w/ Invoice Attached(<$5,000)

Other Requisitions.

Create VO in VPAM

Route Reqs. To

Purchasing

Return to Procurement Main Process

No

Yes

Yes

No

Yes

No

Reference Original Equipment PO # and Property Control # if Purchase is a Component of Capital Equipment.

Editing & Check

Printing

Editing & Check

Printing

Verify VO Entry

OK?

Correct in VPAM Distribute

Checks

Distribute Checks

End

No

Yes

System Generates Voucher,

Remittance Copy, Prelist in CARDS

Route 4Ks & 2Ks to

Purchasing

Issue Other Reqs. Under

RSP Negotiated Contracts

End



Create Purchase Orders

Legacy System Nightly Loads

Req. File to Purchasing

System

Begin


Purchasing Enters Remaining Req.

Form Data to Purchasing System

Purchasing Creates Req. in

Purchasing System

Purchasing Assigns Req. to Purchasing

Agent

Purchasing Agent Reviews & Sources Vendor

Agent Creates PO from Req. in Purchasing

System

Wait for Vendor

Response

Agent or Prog. Assist.

Releases PO

Order Status = R

EPRQ: Fund, Account, UDDS, Activity, Class Code.

Note: At beginning of each month, the legacy system loads funding source and expiration dates to the Purchasing System.

Purchasing System Updates

Vendor File

Reqs. Under $5,000 or from

Delegated Agent

All Other Reqs.

Agent Defines Invoice/PMT

Handling

•Bid•Quote•RFP•Waiver•Contract Processes



System Process of POs and Related Files

Purchasing System Nightly Prints POs at

DoIT

Begin

Distribute PO Copies

To vendor, Dept. Accounting, etc.

Purchasing System Loads

PO File to Legacy (INQP)

Legacy System Creates Req. Error Report

Cancelled, Closed or Non-Exist Reqs.

Legacy System Populates Legacy Tables Used by

Accrual Accounting (INQP)

Legacy System Creates Entry

Change Report

List of Reqs with over ±$100 Variance


Purchasing System Loads

Updated Vendor File to Legacy

(ADDI)

Legacy System Creates Vendor File Load Error

Report

Vendor File Load

Error?

No

Yes

Last Updated: October 15, 2002 6Last Updated: September 20, 2002 6

External Vendor Procurement Processes As-Is Create Continuing Order Requisitions (COR)

Purchasing System

Generates COR (Five times a

year)

Purchasing Routes Copies

of COR to Departments

Department Reviews COR

COR Still Needed?

NO

YES

Department Discards CORs

StopDepartment Edits COR

Department Routes to

Deans Office

Dept. Chair Approves COR

Dept. Routes to Chair

Dean’s Office Approves and

Enters on EPRQ

Legacy Updates Oracle Funding

Table in Purchasing System

Dean’s Office Routes to

Purchasing

133 or 144 FundsWith Special Class codes?

YES

RSP Reviews and

Approves

NO Purchasing Creates New Req

from Old Req

OK to Release?

YES

NO

Purchase Orders

Distributed next day

Purchasing Agent Reviews & and releases Order

RSP routes to Purchasing


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.

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.

Begin

Dean’s Office Routes to RSP

Copy old req. to new req., assign a new req. number and corss-reference between old & new req numbers in the system.



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.

• 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.

Return to Procurement Main

Process


DepartmentBusinessManager

University of Wisconsin - MadisonMacro View Sealed Bid Process

ProgramArea End

User

PurchasingServices

Accounting

IdentifiesNeed

Presents needto dept. bus.

mgr.

ReviewsNeed

Does itqualify as a

bid? Yes

End of Process

No

page 1 of 3

Createspurchase reqw/ end user

A

Vendor

EvaluationCommittee

VendorNet

Legend:

Process Manually createddocument

Manualoperation/process

Manual Input Terminator Stored data Off-pageconnector

Electronicallycreated document

Decision

StateJournal

Collectpurch.

req., prop.eval. proc.

info

Pre AuditRequisition

GrantAward?

No

YesGrant review

process

Enters Datainto OraclePurchasing

System

Createspurchase reqw/ bus. mgr.

Draft bid,prop. eval

procedures


procedures


procedures

External Vendor Procurement Processes As-Is - Prepare Bid


Process




ProgramArea EndUser

Vendor

EvaluationCommittee

Accounting

Legend:





Decision

StateJournal

Publishes bidnotice

PurchasingServices A

Place bidnotice in

State Journal

VendorNet

Readsbid

notice

Respondsto notice?

No End of Process

Yes

B

page 2 of 3

Identify/sendbid to

vendors

Sends bid tovendor

Obtainsbid

Respondto bid?

No End of Process

YesPrepareresponseto bid

Vendorsreceives bid

External Vendor Procurement Processes As-Is - Publish Bid


Process




ProgramArea EndUser

PurchasingServices

Accounting

Vendor

EvaluationCommittee

VendorNet

Legend:





Decision

StateJournal

B

Receives& reviewsresponses

Makes awardrecommenda-

tion

page 3 of 3

Mail responseto purchasing

office

Receivesresponses

from vendors

Opensresponses

on bidopening

date

Forwardresponseevaluationcommittee

Makesvendoraward

Createspurchase

order

Purchaseorder tovendor

Receivespurchase

order

End process

External Vendor Procurement Processes As-Is – Evaluate & Award Bid


Process

Documents

Last Updated: October 15, 20021 External Vendor Procurement Main Processes As-Is Purchasing Order Main ProcessBid Main Process Requisition Auditing Create