The approved Purchase Order (PO) document serves two purposes. Externally it is a legal contract with a vendor to deliver goods or services. Internally it provides the mechanism to generate documents for payments and receipt of goods. It differs from most other documents in three ways:
- The PO is not generated by initiating a blank document that is then completed by the initiator. Instead, the system automatically generates a PO (referred to as an APO) from an approved requisition or by assigning a contract manager to an approved requisition. When creating the new PO, the system populates it with information from the related requisition.
- The document can be worked on by any purchasing staff member. Many other documents are only editable by the initiator. An in process PO can be edited by any staff member who is a member of the Purchasing Processor role.
- A purchase order can be amended after it is approved. Many purchasing organizations refer to this amended PO as a change order.
PO documents may be retrieved via document search. From this point, the purchasing staff may finalize the details of a purchase order and transmit it via fax or print it for mailing to the vendor.
Purchase Order document tabs and purposes
Document Overview: In addition to the standard document overview information (description, explanation, and organization document number), contains the fiscal year, line item receiving requirements, contract manager, use tax indicator, funding source, previous purchase order number, the source of the requisition and a way to alter the status of the PO when waiting on information from a vendor or the department.
Delivery: Contains information about the final delivery and central receiving addresses.Allows for the entry of stipulations that the vendor filling this PO must follow. May also be used for any additional contractual information that should be added to the PO.
Vendor: Contains information about the vendor who has been selected to provide the goods or services and the reason the vendor was selected.Stipulations
Items: Identifies what is being ordered on this PO and establishes an accounting distribution indicating how these items should be charged.
Capital Asset: Collects information about high-value assets that must be accounted for as capital investments
Payment Info: Indicates the type of payment schedule required and the duration of that schedule if recurring payments are required for the items on this PO
Additional Institutional Info: Collects information about the organization at your institution that has requested the goods or services for this PO as well as the transmission method and internal contact information.
Quote: If a quote is initiated in the purchasing process this tab will contain the list of vendors who were invited to participate in the quote process. Each vendor's response, and ranking, along with the name of the vendor awarded the order, is displayed here.
Account Summary: Summarizes the accounting information for all the line items on this PO. The line items that make up the summary display here.
View Related Documents: Lists all documents related to this PO such as the requisition, receiving documents, payments, credit memos. Also all the various PO documents that are created from the PO when the PO is amended, closed, open, or retransmitted.
View Payment History: Lists all the payment requests and credit memos related to this PO document.
General Ledger Pending Entries: Generates a display-only view of the encumbrances that have not yet posted the G/L. This tab may be empty if there are no pending entries.
As in other Financials documents, the header section contains basic identification and status information about the document as well as who created it. The Requisition document has two additional fields in the document header that do not appear in other documents: Purchase Order # and Purchase Order Doc Status.
- Purchase Order #: An identifying number assigned to this Pruchase Order (PO). The PO number may be used for queries specific to the PURAP module. This number differs from the Doc Nbr, which identifies the PO as a unique document for general Financials and Workflow queries.
- Purchase Order Doc Status: A status that indicates where in the PURAP process a Purchase Order is at any given time. This is similar to the status a document receives in Workflow but is specific to the purchasing process. Examples of PO statuses include In Process, Awaiting Purchasing Approval, Out for Quote, and Closed. Refer to Purchasing/Accounts Payable Application Document Statuses for additional information.
In addition to the standard Document Overview fields, the Purchase Order Document Overview includes Financial Document Detail, Purchase Order Detail and Status Changes sections.
Financial Document Detail
- Year: Identifies the year in which the purchase will be encumbered. It defaults to the current fiscal year and can be changed to the next fiscal year when allowed by parameter ALLOW_ENCUMBER_NEXT_FY_DAYS. If the FY is set to the next fiscal year, the funds will not be encumbered until that next fiscal year.
- Total Amount: Displays the total amount of the Purchase Order including tax and additional lines.
Purchase Order Detail
- Chart / Org: Automatically completed based on the initiator's chart/org and may be changed manually via the lookup. Content Review routing uses the Chart/Org to determine where to route.
- Funding Source: Defaults to Institution Account. May be changed by selecting another option from the list. There is no functionality around this field and it will be removed in a future release.
- Receiving Required: This flag can be set by a Purchasing Processor while a PO is in process. If the field is checked manually, the system will not use receiving thresholds to determine whether receiving is required and a line item Receiving document must be processed with sufficient quantities received before a payment will route to the fiscal officer. Refer to Receiving (Bulk, Line Item and Correction) for additional information. After the PO is approved, this value cannot be changed. The Receiving Required field displays when the RECEIVING_DOCUMENT_REQUIRED_IND parameter is set to Y.
- Payment Request Positive Approval Required: The DEFAULT_POS_APRVL_LMT parameter determines the dollar limit where payment requests must receive positive approval from a fiscal officer. If this field is selected, positive approval on the payment request is required regardless of the total of the payment. This field displays when parameter PAYMENT_REQUEST_POSITIVE_APPROVAL_IND parameter is set to Y. This parameter controls whether Payment Request positive approval functionality is invoked.
- Contract Manager: The name of the contract manager for this PO. If the PO status is In Process, Waiting for Vendor, or Waiting on Department, the Contract Manager lookup may be used to change the contract manager.
- Previous Purchase Order #: Identifies the previous PO number associated with this purchase order. This field is typically used to identify the converted PO number from a legacy purchasing system.
- Assigned to User: Allows a user to take ownership of an in-process document. This field is searchable on the PO Custom Document search so that users can then easily find documents they are working on.
- Purchase Order Confirmed Indicator: Check this box to indicate that this PO is being created after the purchase has been made. This field may be used to track instances in which users did not properly create a requisition before making a purchase. In this case, the PO is being processed only to enter the transaction into the system.
- Use Tax Indicator: this field displays when the ENABLE_SALES_TAX_IND parameter is set to Y. Indicates whether sales or use tax applies to the PO.
- Requisition Source: Indicates whether the requisition that created this PO was input directly or created in some other way such as B2B.
Waiting on Additional Infor: If the PO is In Process and additional information is required, select the Vendor or Department radio button (depending on whom additional information is needed from) and then click the Save button to change the PO status to Waiting for Department or Waiting for Vendor. The system requires an explanatory note to complete the status update.
The PO cannot be routed for approval until the status of the PO is In Process. Selecting the None radio button and the Save button updates the status of the PO to In Process.
The Delivery tab contains information about where goods ordered on this PO should be delivered. It also collects delivery contact information and any special delivery instructions. The address that is transmitted to the vendor (final delivery vs. receiving address) depends on the radio button that is selected in the Address to Vendor section.
When the PO is initiated, all information in the tab is populated from the requisition. Refer to Requisition for an explanation of the fields in this tab.
On an approved purchase order, the Vendor tab identifies the vendor that was awarded the PO. The default is the vendor selected on the requisition. Although most field entries in this tab default to the values provided on the associated requisition (REQS) document or from the vendor's default information, the entries may be modified.
The Vendor tab includes two sections: Vendor Address and Vendor Info. Vendor Address is self explanatory; Vendor Info fields are described below.
- Vendor Choice: Select the reason that this vendor was selected to fill this purchase order. Values in this list are maintained using the Purchase Order Vendor Choice lookup and maintenance document.
- Customer Number: Enter or look up a customer number that identifies your institution or department for this vendor's reference.
- Notes to Vendor: Include any text you want the vendor to see on the PO.
- Payment Terms: Select the payment terms from the Payment Terms list. Refer to the Payment Terms Type article for additional information.
- Shipping Title: Select the shipping title from the Shipping Title list. Values in this list are maintained using the Shipping Title lookup and maintenance document.
- Shipping Payment Terms: Select the shipping payment terms from the Shipping Payment Terms list. Values in this list are maintained using the Shipping Payment Terms lookup and maintenance document.
- Contract Name: If a contract exists with the vendor for these goods or services, select one from the Contract lookup. Selecting a contract populates the vendor associated with that contract.
- Supplier Diversity: Defaults to the value associated with the selected vendor if assigned.
- Fax Number: Optionally, enter the selected vendor's fax number.
- Alternate Vendor for Non-Primary Vendor Payment: Used when purchasing needs to give accounts payable the option to pay one vendor or another. Examples include third-party receivables or escrow accounts for construction payments.
The Stipulations tab allows for the entry of stipulations for the vendor filling this PO. It may also be used for any additional contractual information that should be added to the PO. Stipulation text can be added and maintained using the Vendor Stipulation lookup and maintenance document.
The Items tab identifies what is being ordered on the PO and establishes the accounting distribution for payments. Before the PO has been approved, you may change or add to the items and accounts that have been carried over from the requisition. You may also add additional charges or apply PO total reductions here. Refer to the Requisition article for detailed information on the Items tab and Accounting Lines. Fields unique to the Purchase Order are described below.
Items and Current Items
When processing an amendment to a PO, you may deactivate item lines that are no longer valid. To do so, select the Inactivate check box next to the appropriate items. When the amendment is approved, these items are no longer valid for this PO.
Additional Charges Section
Item Types are maintained using the Item Type lookup and maintenance table and parameter ADDITIONAL_CHARGES_ITEM_TYPES, component Purchase Order, specifies which item types will display in this section.
The values in this parameter must include the values entered in the Requisition ADDITIONAL_CHARGES_ITEM_TYPES parameter and must be a subset of the values entered in the Payment Request ADDITIONAL_CHARGES_ITEM_TYPES parameter.
NOTE: This section will not display if ADDITIONAL_CHARGES_ITEM_TYPES parameter is blank or if the Requisition was created from Shop Catalogs.
Internal Purchasing Limit: Displays the dollar amount above which a PO will route to the Contract Manager route level if a purchasing processor who is not a contract manager submits the order.
The Capital Asset tab identifies high-value purchases that must be accounted for as capital investments. This tab behaves the same on both the Requisition and the Purchase Order, refer to the Requisition for Capital Asset screenshots and field descriptions.
If recurring payments are required for this PO, this tab is used to indicate the type of payment schedule required and the duration of that schedule. The fields in this tab are informational only and do not drive any functionality.
- Type of Recurring Payment: Select the recurring payment schedule from the list. Values in this list can be created and maintained using the Recurring Payment Type lookup and maintenance document.
- Begin/End Date: Required if Type of Recurring Payment has been selected. Enter dates indicating the time period during which the order is active.
- Recurring Payment Amount: If a recurring payment type of fixed schedule or fixed amount has been selected, complete the remaining fields in this section.
- First Payment Date: Enter the date on which the first recurring payment should be made. This date is used to determine subsequent payments based on the frequency. For example, if the frequency is monthly and the first payment date is 01/01/2010, the subsequent payments occur on the first of the month.
- Frequency: Indicate how frequently the payment should be made. Values in this list can be created and maintained using the Recurring Payment Frequency lookup and maintenance document.
- Initial and Final Payment Amount: Enter the amount of the initial and final payments if those amounts differ from the Recurring Amount
- Initial and Final Payment Date: Enter the dates on which the initial and final payments are to be made if those dates differ from the date in the First Payment Date field.
- Billing Address: Defaults based on the Delivery Campus entered on the Delivery tab. Billing Addresses are maintained using the Billing Address lookup and maintenance document.
Additional Institutional Info
The Additional Institutional Info tab collects additional organizational information about the requisition. Most fields are self explanatory, those requiring additional
- Method of PO Transmission: From the list, select the PO transmission method that should be used to send the related PO to the vendor. Choices include Print and No Print. Other types of transmission that require additional setup are Electronic (requires that B2B has been implemented) and Fax (requires that a fax server has been configured).
- Requestor Name, Phone and Email: Identifies the person who requested the item and can answer questions about the purchase.
- Contact Name, Phone and Email: Identifies the person who can answer questions about the administrative aspects of the requisition.
- Reference 1 - 3: Use to provide additional reference information. These fields are informational and do not drive functionality.
- Cost Source: The cost source will always be estimate unless the vendor was selected from the Contract lookup. In that case the cost source associated with the contract is displayed here.
- PO Total Cannot Exceed: Indicates a total dollar amount that the associated PO should not exceed. This field is informational and does not drive functionality.
- Sensitive Data: Displays the assigned sensitive data entries added using the Assign Sensitive Data to the PO button. This button is displayed to users in the Purchasing Processor role only. Clicking the button at the bottom opens the Assign Sensitive Data to Purchase Order tab. This tab allows you to add sensitive data entries.
- Reason for Assignment: Enter the reason for the sensitive data assignment.
- Last updated by Person: The principal name of the person who last updated the sensitive data information.
- Reason for Last Update: The reason entered from the previous update.
- Last updated on Date: Date of the previous update.
- Sensitive Data: Select a value from the list - all values selected will be listed in the Additional Info tab. Values can be added and maintained using the Sensitive Data lookup and maintenance document.
The ability to initiate a quote is available only to those in the KFS-PURAP Purchasing Processor role.
The initiate a quote process allows purchasing to competitively bid the PO and collect information about the vendors to which a request for quote will be sent. After the vendors have had an opportunity to review the details of the request and submit their bids, a Purchasing Department staff member returns to this tab and identifies the winning bid or quote. At that time, the PO approval process continues.
Initiating a Quote
To initiate a quote, click the Initiate Quote button on the Quote tab.
In the fields displayed for a new quote:
- Specify the Quote Due Date which defaults to 10 days after the current date, and
- The Quote Type Code, options include Competitive and Price Confirmation, new values cannot be added and existing values cannot be changed.
- Enter any information the vendor needs in the Notes to Vendor field.
- Enter the vendor's information in the New Vendor section or select a vendor from the vendor lookup.
- Click Add Vendor, another set of fields will be added and as many vendors as desired can be added.
Select Quote List
Some commodities may have a pre-created list of vendors already entered into the system. For convenience, you may insert this list here. For example, several computer suppliers may be available to bid on a PO. Instead of entering each vendor each time you want to send out a request for quote, you may simply load the saved list. To do so, click the Select Quote List button. The system displays the data entry screen. Enter a list name or contract manager and search. The system displays search results below the fields. To select a list, click return value. The system displays the PO and automatically enters the vendors into the Quote tab.
After all vendors have been entered into the Quote section, print and mail or fax the PO to the vendors. To do so, in the section for each vendor, select Print or Fax from the Transmit list and click the Transmit button.
The system displays a PDF that you may print for mailing or faxing.
Selecting a Vendor's Quote
- After bids have been received, access the PO and appropriately change the quote status for each vendor.
- After making your selections, click the Complete Quote button. A confirmation page displays. To award the purchase order to the vendor who submitted the successful bid, click Yes button.
- After the PO has been awarded to a vendor, the Quote tab becomes display-only and the status of the PO becomes In Process.
The Account Summary tab combines all accounting information for the items on this PO for future reference.
Clicking the Refresh Account Summary button reloads the page and adds any accounts and/or line items that the user may have just added to the PO.
View Related Documents
The View Related Documents tab collects information about PURAP documents related to this document. For example, it displays identifying information for any associated requisition, payment requests, or credit memos.
View Payment History
The View Payment History tab lists all the payment requests and credit memos that have been issued against the PO. This tab is not populated until Payment Requests are processed against the PO. Refer to Payment Request for additional information.
- The PO generates encumbrances when a Contract Manager is assigned. Encumbrances are updated as changes are made to the Purchase Order. Encumbrances are created on the accounts and object codes entered in the item sections and the appropriate offset object code(s).
- Expired and inactive contracts cannot be used on Purchase Orders.
- Non-Capital Assets are not allowed on the Capital Asset tab.
- If a debarred vendor is used on a Purchase Order, a warning will be presented to the user and a justification for using the vendor will be required if used.
- An Automatic Purchase Order (APO) document may be created only under certain conditions, refer to Automatic Purchase Order Rules for details.
- Purchase Order numbers will be masked to all users until the Purchase Order is Open, unless the user is authorized to view the Purchase Order number before it’s Open. The Purchase Order number will not be masked when the Purchase Order is amended or closed.
- The following rules apply for allowable accounts to be charged on a PO. These are the same rules used for the REQS and PREQ. The specific codes for these rules may be specified via parameters.
- Only expense (EE, ES or EX object types) or asset (AS object type) object codes are allowed. Asset object codes must be in the INV or OASS object level.
- Object codes in the consolidations of Compensation (CMPN), Financial Aid (SCHL), Reserves (RSRX) and Assessments Expenditures (ASEX) are not allowed.
- Object codes in the levels of Depreciation (DEPR), Indirect Cost Expense (ICOE), Valuations and Adjustments (VADJ) and Taxes (TAX) are not allowed.
- Object codes with a sub-type code for Transfers (TN) are allowed.
- Internal Purchasing Review: Triggered if the dollar amount of the PO exceeds the dollar amount for the associated contract manager (CM Delegation Dollar Amount field on the Contract Manager table) and the person submitting the order is not in the Contract Manager role.
- Commodity Code Review: This route level is triggered if a commodity code on any line items has been added to the Commodity Reviewer role.
- Contracts & Grants Review: Triggered if any grant accounts are used in the Items section of the PO and the account string contains:
- an object code that exists in the either the CG_ROUTE_OBJECT_CODES_BY_CHART or CG_ROUTE_OBJECT_LEVELS_BY_CHART parameters.
- a Contracts & Grants account
- Budget Office Review: If the PO is for the current fiscal year, all accounts used on the document are checked to see if any of accounts use sufficient funds checking. If the encumbrances from this order would cause these accounts to have insufficient funds, the PO document routes to the Budget Reviewer role for approval, if configured to do so.
- Vendor Tax Review: If the vendor used on the PO is a foreign vendor OR the vendor's tax number matches a tax number if the employee table, the document routes to the Tax Manager role.
- Document Transmission: If the document is an APO, an FYI is generated back to the initiator of the requisition document. If the document is not an APO, an FYI is generated back to the user who submitted the PO.
- FYI: Notifications are sent to the initiator and fiscal officer when the Purchase Order is fully approved
Performing Other Activities on a PO
After a PO has been initiated, authorized users may perform a variety of activities on it. With the exception of Print, each of these actions generates a new document (although the PO number remains the same). The following chart summarizes each action and its corresponding document type. (The document type code for each is listed in parenthesis after the name of the associated button.) The table also indicates whether each action results in transactions to be fed to the G/L process.
To access any of these options for working with a PO, search for the PO document and open it. At the bottom of the open document, a series of specialized action buttons display at the bottom, each corresponding to a different option. Click the button for the function you want to perform.
PO document types
Makes changes to the existing PO.
Indicates that no payments should be processed against this PO.
Changes the status of the PO back to Open so payments can be made. An FYI is also sent to AP to indicate that the hold has been removed.
Reprints a copy of the PO and retransmits it to the vendor.
Cancels the PO and disencumbers all related items. This option is not available after a payment has been made.
Closes out any remaining items on this PO and disencumbers any outstanding funds.
Reopens the PO and re-encumbers any accounting lines that were disencumbered when the PO was originally closed.
Takes a PO with multiple line items and splits it into two (or more) POs. The line items are divided among the POs.
A single PO document can have several different document numbers assigned. To correlate this information and find the most recent version of a PO, use document search, enter PO for doc type and enter the PO number as a search criteria. For example, if a user amended a PO (POA), placed the PO on hold (POPH), removed the hold (PORH), and then created a PO Void (POV). The system retrieved five documents when the user searched on the PO number.
- Original PO created from the Requisition
- Amended PO (POA)
- Held PO (POPH)
- Hold is removed (PORH)
- Voided PO (POV)