Introduction
This section provides information and step-by-step procedures to guide you when you create purchase orders and issue change orders to revise submitted purchase orders.
If your system is set up so you begin all procedures from the Master Menu, access the Fiscal Management menu to find options referenced in these procedures.
Decentralizing the Purchasing Process
If desired, your institution can set up CX so every department on your campus can submit its own purchase orders. To decentralize the purchasing function, your Jenzabar coordinator must place the Purchase Order Entry menu option on every menu from which purchase order submission is to be permitted. In addition, the General Ledger Permissions table must be updated to enable users in the various groups to access the accounts to charge for purchases. The system safeguards that each department only has access to the accounts to which it can charge purchases. For more information on completing the General Ledger Permissions table, see Limiting Permissions for Accessing Programs in the General Ledger Technical Manual, Volume 1.
Automated Purchase Order Approval
If desired, your institution can set up the system so every submitted purchase order can be routed through the approval process. To activate the approvals for purchase orders, you will need to create appropriate entries in the desired approval authorization tables. For more information on the approval process and completing the authorization tables, see Approval and Customizing the Requisitioning Processes in the Requisitioning, Purchasing and Accounts Payable Technical Manual.
Before You Begin
Before you begin using the following procedures to create a purchase order, remember the following:
• Approved requisitions must exist if a purchase order is to be based on requisitions.
• Once you select a requisition to create the purchase order, that requisition is removed from the listing of available requisitions.
• You can refer to the field descriptions in Using the Purchasing and Accounts Payable Screens section of this guide when you complete the fields on the purchase order screens.
The Process
This list shows the general phases that take place before, during, and after creating a purchase order using a requisition.
1. Access Purchase Order Entry.
2. Select the command appropriate for the task you want to complete:
• Requisitions to create a purchase order using an approved requisition
• Build PO to create a purchase order not based on an approved requisition
• Query PO to select a previously saved purchase order
• Budget Review to access the Budget Review program
Note: If you do not want to add or update purchase order information, select Query PO, then select one of the following commands for the desired ending action:
• Check to review checks and invoices that exist against the purchase order
• Close to prohibit any further action against the purchase order (e.g., if you have found an alternate vendor for an outstanding item on an existing purchase order)
• Delete to eliminate the selected purchase order
• Review to display information about the purchase order
3. Add or update vendor and payee information on the Purchase Order Header Entry screen.
4. Add or update line item information.
5. Add or update line item account information.
6. Select the command for the desired ending action:
• Finish to save changes and hold the purchase order with a New (N) status
• Submit to send the purchase order to the Accounts Payable and Receiving processes Notes:
• Cancel to return to the previous screen without saving changes or creating the purchase order
• The system assigns a purchase order number when you select Finish or Submit.
• If you have defined approval tables to check purchase orders for required approval, you will see a message indicating approval is required by another user. When all required approvers have approved the purchase order, you will be notified that approval is complete. You then Submit the purchase order for processing. Thus, when a purchase order requires approval, you will need to Submit it two times: first for approval, and second for processing.
Commands to Use
The Requisitions and Build PO commands on the Purchase Order Header Entry screen enable you to create purchase orders. Use the Requisitions command when you want to create the purchase order from a specific requisition. This command instructs the system to display a listing of the available requisitions.
Use the Build PO command when you want to create the purchase order by including selected line items from one or more approved requisitions, or by adding new line items directly.
Select the Change Order command to issue a change order against a purchase order. The Change Order command instructs the program to initiate the following actions:
• Accounting entries are reversed
• Associated encumbrances are removed
• Status is changed from Submitted to New
• The form type code is updated to CP
Assigning Buyers for Requisitions
Introduction
The purchasing manager or an assigned supervisor uses the Assign Buyer program to assign requisitions to specific buyers by station number.
How to Assign Buyers for Requisitions
The following lists the steps for assigning buyers for requisitions.
1. From the Purchasing/Requisition/Approval menu, select Assign Buyer for Purchase and select Finish. The Assign Buyer - Parameter screen appears in the Parameter screen mode.
Note: Depending on your implementation and the policies at your institution, you may need to enter a password to access this menu option.
2. Define the desired parameters and select Finish. The Assign Buyer - Parameter screen displays in the Assign Buyers for Req mode.
Note: The body of the screen is blank, but the command options have changed to include the following: Assign Buyer, Initialize, and Exit.
3. Select Assign Buyer. The Assign Requisition to Buyer screen appears in Select Requisition mode.
4. Move the cursor to the Assn field next to the requisition to be assigned, and enter the station number of the assigned buyer.
5. Continue this procedure until all requisitions have been assigned.
Note: Use the Forward and Back commands to page through the requisitions if there are more than 18 listed.
6. Do you want to view a requisition?
• If yes, do the following:
− Place your cursor in the Assn field for the requisition to be selected.
− Select View Requisition.
The Requisition Summary screen appears.
• If no, go to step 6.
7. Have you completed assigning and viewing requisitions?
• If yes, select Close and go to step 7. You return to the Assign Buyer - Parameter screen in the Assign Buyers for Req mode.
• If no, repeat steps 4 and 5 as necessary.
8. Do you want to change parameters and continue assigning buyers?
• If yes, do the following:
− Select Initialize.
− Enter desired parameters and repeat steps 2 through 7.
The Assign Buyer - Parameter screen appears in the Parameter screen mode.
• If no, select Exit. You exit the Assign Buyer program and return to the menu.
Creating a Purchase Order Using a Requisition
Introduction
When you create a purchase order based on an approved requisition, that requisition is removed from the listing of available requisitions and cannot be used in another purchase order. All of the line items in the requisition are included in the new purchase order. Using this procedure, you can modify, enter or delete line items.
How to Create a Purchase Order Using a Requisition
The following lists the steps for creating a purchase order using a requisition.
1. From the Purchasing/Requisition/Approval menu, select Purchase Order Entry and select Finish. The Purchase - Parameter screen appears.
2. Define the desired parameters and select Finish. The Purchase Order Header Entry screen appears.
3. Select Requisitions. The Purchasing - Requisition Selection screen appears.
4. Enter an asterisk (*) beside the requisition you want to use, and select Create PO. Purchase Order Review screen appears. All line items included on the requisition form are now listed on this screen. A temporary form code (TM) appears and a temporary number is assigned by the system. The temporary number is not the purchase order number.
Note: You can only select one requisition at a time.
5. Do you need to add or change the information in the header?
• If yes, do the following:
− Select Update.
− Make additions or changes and select Finish.
The Purchase Order Header Entry screen appears.
• If no, go to step 6.
6. Do you need to delete a line item?
• If yes, do the following:
− Enter an asterisk (*) beside the line item to be changed.
− Select Delete.
− Go to step 7.
The program deletes the line item.
• If no, go to step 7.
7. Do you need to change information about any line item?
• If yes, do the following:
− Enter an asterisk (*) beside the line item to be changed.
− Select View/Mod.
− Make necessary changes.
− Go to step 8.
• If no, go to step 9.
8. Do you want to view or change information about the account(s) being charged for this line item?
• If yes, do the following:
− Select Account Info.
− Make necessary changes.
− Select Finish.
− Go to step 9.
The Line Item Account Entry screen appears.
• If no, go to step 9.
Notes:
• If you have enabled your General ledger Account Auto-Fill feature, parts of your account number may fill automatically based on values in the General Ledger Substitution table.
• As you enter individual items against various general ledger accounts, the system monitors the total charges to each account and displays a warning message appears if you exceed the budget.
9. Do you want to add a new line item?
• If yes, do the following:
− Select Finish, and note the purchase order number that the program assigns and displays on the screen.
− Select Query, using the purchase order number noted above as the search criteria.
− Select Finish.
Note: You can either select requisition line items to add to the current purchase order, or directly enter additional line items.
• If no, go to step 10.
10. Do you wish to make any other changes to the header or line item information?
• If yes, repeat steps 5-9 as appropriate.
• If no, go to step 11.
11. Are you ready to submit the purchase order?
• If yes, select Submit. The program does the following:
− Creates the purchase order.
− Assigns a PO number.
− Enables the Accounts Payable and Receiving applications to access the purchase order.
− Displays the Purchase Order Header Entry screen.
− Prints a copy of the submitted purchase order on the printer.
Note: If you are using approval for purchase orders, the program will send the purchase order into the approval process. After approval is complete, you will be notified that the
purchase order can be submitted for processing. You then Query and Submit the purchase order to the accounts payable process.
• If no, select Finish. The program does the following:
− Creates the purchase order.
− Displays the assigned PO number in a pop-up window.
− Displays the Purchase Order Header Entry screen.
Note: The program enables you to update the purchase order at any time until you submit it and make it available to the Accounts Payable and Receiving processes.
12. Do you want to continue working in Purchasing?
• If yes, select the appropriate command for your next procedure.
• If no, select Exit.
Creating a Purchase Order Using Build PO
Introduction
This procedure enables you to create a purchase order and add line items using either or both of the following methods:
• Select specific line items from a listing of approved requisition line items.
• Add line items directly through the purchasing process, bypassing the requisition and approval processes.
Before You Begin
Before you begin using the following procedures to create a purchase order, remember the following:
• Once you select a requisition line item to be added to the purchase order, that requisition line item is removed from the listing of available line items.
• You can refer to the field descriptions in Using the Purchasing and Accounts Payable Screens section of this guide when you complete the fields on the purchase order screens.
How to Create a Purchase Order Using Build PO
The following lists the steps for creating a purchase order using Build PO.
1. From the PO/Requisition/Approval menu, select Purchase Order Entry, and select Finish.
The Purchase - Parameter screen appears.
2. Define the desired parameters, and select Finish. The Purchase Order Header Entry screen appears.
3. Select Build PO. The Purchase Order Header Entry screen displays in the Entry mode.
4. Enter vendor and payee information, and select Finish. The Purchase Order Header Entry screen displays in the Build PO mode.
Note: You can use vndentry (Vendor Entry) to query for the vendor or payee ID. If you are certain that no ID records exist for the vendor or payee, you can add the name and address information in Vendor Entry. For more information on using CX entry programs, see Jenzabar’s Getting Started User Guide.
5. Do you want to add line items from approved requisitions?
• If yes, select Select Items and go to step 6. The Purchasing - Requisition Line Item Selections screen appears in the PO Select From Items mode.
• If no, go to step 8.
6. Select the line item to be added to the purchase order by entering an asterisk (*) in the selection field next to the line item, then select Add Selections. The Purchasing - Requisition Line Item Selections screen continues to display in the PO Select From Items mode.
Notes:
• If the listing contains more than eight (8) items, use Forward and Back to scroll through the listing.
• When the last line item is selected, the program displays this message: “All approved Requisition line items have been pulled from the Select From list. Will now exit the Select
from screen.” After responding to this message, the Purchase Order Header Entry screen displays in the Build PO mode.
7. Do you want to add another line item from the selection list?
• If yes, repeat step 6.
• If no, select Close and go to step 8. The Purchase Order Header Entry screen displays in the Build PO mode.
8. Do you want to a new line item?
• If yes, select Add Items and go to step 9. The Purchase Order Line Item Entry screen appears in the Line Item Detail Entry mode.
• If no, go to step 11.
9. Enter the information needed for the first item being added, and select the appropriate command:
• Account Info to enter information on multiple accounts to be charged for the item. The Line Item Account Entry screen appears. After you enter the account information, select Finish.
• Save/Next Item to enter another item. The Purchase Order Line Item Entry screen appears in the Line Item Detail Entry mode. When entering multiple items, continue using the Save/Next Item command until all items have been listed, then select Finish.
• Finish to indicate there are no more items to enter. The Purchase Order Header Entry screen appears in the Build PO mode.
Note: If you have enabled your General ledger Account Auto-Fill feature, parts of your account number may fill automatically based on values in the General Ledger Substitution table.
10. Do you want to add another line item?
• If yes, repeat steps 8-9.
• If no, go to step 11.
11. Are you ready to submit the purchase order?
• If yes, select Submit. The program does the following:
− Creates the purchase order.
− Assigns a PO number.
− Enables the Accounts Payable and Receiving applications to access the purchase order.
− Displays the Purchase Order Header Entry screen.
− Prints a copy of the submitted purchase order to the printer.
Note: If you are using approval for purchase orders, the program will send the purchase order into the approval process. After approval is complete, you will be notified by mail that the purchase order can be submitted for processing. You then Query and Submit the purchase order to the accounts payable process.
• If no, select the desired command to continue working with this purchase order, or select Close. After selecting Close, the purchase order is created and the Purchase Order Header Entry screen displays.
Note: The program enables you to update the purchase order at any time until you submit it and make it available to the Accounts Payable and Receiving processes.
12. Do you want to continue working in Purchasing?
• If yes, select the appropriate command for your next procedure.
• If no, select Exit.
Issuing a Change Order
Introduction
When you need to revise a purchase order that has already been submitted to the general ledger, you must issue a change order. A change order is a purchase order that has been altered in any way since its original submission. This section provides comprehensive examples and explanations of how the system processes change orders. It also contains information and step-by-step procedures for issuing change orders.
Before You Begin
The following rules apply within the change order logic in Purchase Order Entry:
• Change orders change the Document Code associated with the purchase order. For example, a purchase order’s Document Code of PP changes to CP after a change order is submitted.
• Change orders apply only to submitted purchase orders.
• You can create a change order for any submitted purchase order, even if one or more invoices have been applied against the purchase order.
• Change orders reverse all encumbrances for all accounts on the purchase order.
• You cannot submit a change order if an invoice applied against the purchase order has a status of New.
• Once a change order is entered and an invoice has been applied against the purchase order:
− The encumbrance against a purchase order cannot be reduced to any amount that is less than the already unencumbered amount of the applied invoices.
− The vendor ID on the purchase order cannot be changed.
− The purchase order cannot be deleted.
− The purchase order must be resubmitted before applied invoices can be backed out or terminated.
− The purchase order must be resubmitted before new receiving items can be applied.
Note: Once items are received against a purchase order, the receiving form is still accessible and items can still be returned.
Example 1: Change Order Processing with a Single Invoice
The following table traces an example of the submission of a purchase order, the application of an invoice, and the creation of a change order, as well as the impact each action has on
encumbrances. The events in this example demonstrate how the system applies the rules listed above in the processing of change orders.
Event
#
Document Amount Command Posted Encumbrance
Amount
Running Balance
1 PP-1 $100.00 Submit -$100.00 -$100.00
2 IV-1 $25.00 Submit $25.00 -$75.00
3 PP-1 Change Order $75.00 $0.00
4 CP-1 $120.00 Submit -$95.00 -$95.00
5 CP-1 Change Order $95.00 $0.00
6 CP-1 $20.00 Submit Not allowed since $25.00
was unencumbered by IV-1
7 CP-1 Delete Not allowed since IV-1 is
applied
8 IV-1 Delete
(Terminate)
Not allowed since CP-1 is in a "N"ew status
9 IV-1 Backout Not allowed since CP-1 is in
a "N"ew status
10 CP-1 $35.00 Submit -$10.00 -$10.00
11 CP-1 Delete
(Terminate)
Not allowed since IV-1 is applied
Explanation of Example 1 Event 1
A purchase order for $100 is submitted, and the system stores the encumbrance for the order as
A purchase order for $100 is submitted, and the system stores the encumbrance for the order as