Creating a Purchase Order from a Requisition

The requisition-to-purchase order (req-to-PO) process is one of the greatest enhancements provided by the Extended Financial Functions (EFF) implementation. With the added features, the NCAS allows requisitions to be entered directly into the system. Once approved, the requisition lines are simply converted to PO lines using the req-to-PO process.

Advantages of the Req-to-PO Process

As compared to the direct PO process available with the Core Financial Functions (CFF) implementation, the req-to-PO process offers several benefits:

Less data entry is required by the buyer to create each PO.

Available funds are committed when the requisition is entered. By the time a requisition reaches the buyer, funds for the requisition have been committed and the requisition has been approved.

Less paper is required for printing requisitions since the requisition process is electronic.

POs can be created more efficiently. Many requisition lines can be sourced before any POs are created. All POs for the selected vendors are then created in a separate step. As a result, each PO can contain a set of requisition lines from multiple requisitions sourced to the same vendor. Also, a single electronic requisition line can be split to multiple vendors on multiple POs.

An audit trail is available for each PO line which references the originating requisition number/line number.

Requisitioners are able to use inquiry screens to determine the status of a submitted requisition without calling the Purchasing Department.

Sourcing and Converting Requisition Lines

In general, req-to-PO processing involves two operations:

sourcing each approved requisition line to the appropriate vendor

converting the sourced line to a line on the appropriate PO

Sourcing a requisition line, or specifying the vendor, can involve a request for quotation (RFQ), an informal telephone quote, or a sole source decision. Based on the agency's delegation authority, sourcing may include input from State Purchase and Contract (P&C). After the supplier is identified, the chosen vendor and the agreed upon price and terms can be attached to the requisition line.

Because the quantity can be sourced to more than one vendor, a requisition line that has been sourced is also called a split. The term "split" is still used even when only one source is selected. A sourced (or split) requisition line can then be converted to a purchase order line on a new or existing purchase order.

Converting the line involves accessing the sourced requisition line and using the line to create the PO header and the first PO line. Additional requisition lines can then be selected to add to the existing PO for the vendor. Because most information is carried forward from the requisition, the conversion process from sourced requisition line to PO line requires very little data entry.

The sourcing and converting steps of the req-to-PO process can be accomplished using two primary methods: direct requisition conversion (Method 1) or cumulative requisition sourcing (Method 2). The approach you choose to perform the req-to-PO process will vary depending on the nature of the requisitions you receive. Lower volume users would probably use Method 1. Higher volume users might choose Method 2.

Methods to Perform the Req-to-PO Process

The sourcing and converting steps of the req-to-PO process can be accomplished using two primary methods:

Single Sourcing and Converting
Cumulative Sourcing and Converting

The approach you choose to perform the req-to-PO process will vary depending on the nature of the requisitions you receive. The Single Sourcing and Converting method involves sourcing requisition lines and then immediately converting the sourced line into a PO line. Immediately after a PO header and line is created for a particular vendor, additional requisition lines for that same vendor may be sourced and converted as additional lines on that purchase order.

The Cumulative Sourcing and Converting method involves sourcing several requisition lines to the same vendor and then converting them to

Sourcing a Requisition With a Quote Step by Step