Purchasing module

The Purchasing module consists of the following applications:

򐂰 Companies

This application is for managing records for manufacturers, vendors, and other companies that do business with you. Any value appearing in a

Company or Vendor field in a IBM Maximo Asset Management record should have a company record associated with it. Company masters are used for the purposed of defining companies that belong to a company set that can be shared by one or more organizations.

򐂰 Company Master

This application is used to create company master records that belong to a particular company set.

򐂰 Invoices

This application is used to record invoices and match against purchase orders (POs) and receipts for approval. You use the Receiving application to record the receipt of ordered items and materials. You use the Invoices application to record invoices received from vendors, which can be matched to POs. You can also manage scheduled payments for a contract in the Invoices application.

򐂰 Purchase Orders

This application is used to purchase materials or services from an internal supplier or an external vendor. You use the Purchase Orders application to create and manage purchase orders for items, materials, services, tools, and so forth. Purchase orders created automatically in the inventory reorder process are also visible in the Purchase Orders application.

򐂰 Purchase Requisitions

This application is used to request the ordering of materials or services. You use the Company Master and Companies applications to create records for the vendors that provide you with goods and contract labor, other service providers, and asset manufacturers. Any value appearing in a Company or Vendor field on a IBM Maximo Asset Management record should have a company record associated with it.

򐂰 Receiving

This application is used to receive materials into inventory and record the receipt of services. You use the Receiving application to record the receipt of ordered items and materials. When you receive items, IBM Maximo Asset Management increases balances in the Inventory application or issues direct issue items directly to an asset, location, or work order.

Chapter 6. Purchasing 89 You may use the Receive Rotating Items action to create records in the Assets application for rotating assets.

򐂰 Request for Quotation

This application is used to request and manage vendor quotations for prices and delivery information for goods and services.

򐂰 Terms and Conditions

This application is used to enter and maintain a library of terms and

conditions to be used on contracts and purchasing documents. These terms can contain information such as liability concerns, shipping and handling details, or delivery time expectations.

6.1.1 Purchasing and inventory

The Purchasing module works closely with the Inventory module to maintain balances of items and materials in company storerooms.

When you reorder items either manually (using one of the reorder actions in the Inventory application), or automatically, IBM Maximo Asset Management automatically creates one or more of the following types of purchasing records for the reorder:

򐂰 Unapproved purchase requisitions (PRs)

򐂰 Approved purchase requisitions (PRs)

򐂰 Unapproved purchase orders (POs)

򐂰 Approved purchase orders (POs)

6.1.2 Internal versus external purchases

To centralize purchasing, all inventory purchasing can be done through a central storeroom, and all other storerooms can purchase their stock from that central storeroom.

IBM Maximo Asset Management supports this type of purchasing by allowing you to create two types of purchase requisitions and purchase orders. Both purchase requisition (PR) and purchase order (PO) records contain a check box, labeled Internal?.

This check box is in the Vendor section of the record and that is used to indicate whether the PR/PO is an internal or external purchase, as follows:

򐂰 Internal PR/PO

This is requesting the transfer of materials from another company storeroom.

When making internal purchases, select the Internal? check box and enter Storeroom and Storeroom Site information.

򐂰 External PR/PO

This is requesting the purchase of the necessary materials or services from an outside vendor. When creating external PRs/POs, leave the Internal?

check box empty and enter company information.

6.1.3 Line Types

Purchase requisitions (PRs) and purchase orders (POs) list each item or service to be purchased on a separate line. Each PR or PO line must have a Line Type specified for it.

IBM Maximo Asset Management allows you to select from the following default Line Types:

򐂰 ITEM

This type is the default. Use it to order inventory items, that is items that have item records created for them in the Item Master application.

򐂰 MATERIAL

Use it to order items or materials on a one time basis, that is items that do not have item records created for them in the Item Master application. You must enter a description, quantity, cost, and charge value. The charge value can be a work order, location, asset, or GL Account code.

򐂰 SERVICE

Use it to order services on a one time basis, that is services that do not have records created for them in the Service Items application. Services require a description, line cost, and charge value. The charge value can be a work order, location, asset, or GL Account code.

򐂰 STDSERVICE

Use it to order standard service items, that is services that have records created for them in the Service Items application.

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򐂰 TOOL

Use it to order tools, that is tools that have records created for them in the Tools application.

򐂰 SPORDER

Use it to special order items or materials AND create an item record in the Item Master application for the item. Note that the SPORDER type has to be turned on under PO options using the Organizations application.

6.1.4 Commodity codes

Commodity codes can be defined and managed by choosing Select Action→ Add/Modify Commodity Codes in any of the following applications:

򐂰 Companies

򐂰 Item Master

򐂰 Purchase Orders

򐂰 Service Items

򐂰 Tools

Classifying items and services with commodity groups and commodity codes provides a way for you to analyze spending by item type. After you have defined commodities, you may associate them with company, contract, and item records.

You may also associate commodities with individual PR or PO lines for items, service items, or tools that do not have commodity codes assigned to them, including special order materials or services.

6.1.5 Purchasing and contracts

The Purchasing module works closely with the Contracts module to define the specific financial relationship between buyer and seller.

Company records and contracts are both defined at the Organization level, whereas most purchasing is done at the Site level. When you enter a contract in one of the contracts applications, you must select the Authorize Sites action to authorize each site that you want to be able to use the contract.

Contracts module is discussed in detail in Chapter 5, “Contracts” on page 73.

Note: Commodity group or commodity code information added to a PR Line or PO Line is not copied to item records.

Creating purchasing records from contracts

Purchasing records can be created in the Contracts module. You create purchase orders in three ways:

򐂰 Directly from the Purchase Orders application

򐂰 From purchase requisitions (PRs)

򐂰 From requests for quotations (RFQs) Types of purchase orders include:

򐂰 CHG (Change)

A change order is a duplicate purchase order generated from an approved purchase order. If you must change an approved PO that has no receipts, you might prefer to do so by creating a change order. The change order preserves the audit trail by retaining the original PO while you make the necessary changes to the change order PO.

򐂰 PARTS (Parts)

This type indicates that the purchase order is for work order parts.

򐂰 REL (Release)

IBM Maximo Asset Management creates a release type PO when you use the Create Release PO action available in the Purchase Contracts application. A blanket release is a purchase order that you generate from a purchase contract. Your system administrator can set IBM Maximo Asset Management so it automatically approves REL type POs generated from valid contracts.

򐂰 SERV (Service)

This type indicates that the purchase order is for services.

򐂰 STD (Standard)

This type is the default for POs created in the Purchase Orders application.

Distributing costs on purchase orders

In the system, you can distribute the costs of a purchase record line item across multiple GL accounts. For example, if your department ordered and received a new laser printer that the packaging department will also use, you may specify two GL accounts for the printer, one for each department's GL. A PO line item must meet the following conditions if you want to distribute its costs:

򐂰 The PO line item is a direct issue item or service.

򐂰 None of its items or services have been received.

򐂰 The PO type is REL (Release), CHG (Change), or STD (Standard).

򐂰 The PO status is WAPPR (Waiting on Approval).

򐂰 None of the service lines are prorated.

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