Purchase Module FAQ

General Questions

What's the difference between a purchase requisition and purchase order?

• Purchase Requisition: Internal request for goods/services, requires approval before purchasing
• Purchase Order: Legal commitment to vendor after requisition approval Requisitions control spending internally; POs commit to external vendors.

Can I bypass requisitions for small purchases?

Yes, you can set thresholds:

• Under $500: Direct PO creation allowed
• Over $500: Requisition required
• Emergency purchases: Special approval path Configure in Settings → Purchase → Approval Rules.

How does three-way matching work?

System automatically compares:

1. Purchase Order: What we ordered
2. Goods Receipt: What we received
3. Vendor Invoice: What we're being charged Discrepancies beyond tolerance require investigation before payment.

Vendor Management

How do I qualify new vendors?

1. Create vendor record as "Prospective"
2. Collect required documents (insurance, W9, certifications)
3. Check references and credit
4. Conduct site visit if needed
5. Approve and activate for purchasing

Can I have multiple contacts per vendor?

Yes, unlimited contacts with roles:

• Primary contact
• Sales representative
• Accounts receivable
• Technical support
• Emergency contact Each can have portal access with specific permissions.

How do I track vendor performance?

System automatically tracks:

• On-time delivery percentage
• Quality ratings from receipts
• Price competitiveness
• Response times
• Issue resolution Scorecards update real-time with weighted scoring.

Purchase Requisitions

Who can create requisitions?

Depends on configuration:

• All employees (most common)
• Department managers only
• Authorized requesters
• Anyone with system access Control via user roles and permissions.

What happens if my requisition is rejected?

1. You receive notification with reason
2. Options:
   • Revise and resubmit
   • Cancel requisition
   • Escalate if needed
3. Original stays for audit trail

Can I copy previous requisitions?

Yes, several ways:

• Copy entire requisition
• Use templates for common items
• Quick reorder from history
• Import from spreadsheet

Purchase Orders

Can I change a PO after sending to vendor?

Yes, through formal change order:

1. Create amendment
2. Document changes
3. Get internal approval
4. Send to vendor
5. Get vendor confirmation System tracks all versions.

How do I handle blanket purchase orders?

Blanket POs for recurring needs:

1. Set total amount/quantity limits
2. Define validity period
3. Create releases as needed
4. Track usage automatically
5. Get alerts near limits

What if vendor prices change?

Options for handling:

• Update PO if not received
• Accept if within tolerance
• Request credit for difference
• Update future pricing
• Negotiate with vendor

Receiving

What if delivery doesn't match the PO?

System guides you:

• Over-delivery: Accept if within tolerance, reject excess
• Under-delivery: Receive partial, keep PO open
• Wrong items: Reject, create return, notify purchasing
• Damaged: Flag for inspection, document with photos

Can I receive without a PO?

Yes, but controlled:

• Requires special permission
• Must create PO retrospectively
• Flagged for review
• Limited to certain vendors/amounts Better to create PO first when possible.

How does mobile receiving work?

1. Login to mobile app at dock
2. Scan PO barcode or search
3. Scan item barcodes
4. Enter quantities
5. Take photos if needed
6. Complete receipt instantly

Invoice Processing

Why is my invoice blocked for payment?

Common reasons:

• Three-way match failed
• Exceeds PO amount
• No goods receipt
• Missing approval
• Vendor on hold Check exception report for details.

How do I handle price discrepancies?

If invoice price differs from PO:

• Within tolerance (e.g., 2%): Auto-approved
• Outside tolerance: Requires review
• Options: Accept variance, request credit, update PO
• System tracks for vendor performance

Can vendors submit invoices electronically?

Yes, multiple options:

• Vendor portal upload
• Email to designated address
• EDI transmission
• API integration Reduces processing time and errors.

Approvals

How are approval limits determined?

Typical hierarchy:

• Supervisor: Up to $5,000
• Manager: Up to $25,000
• Director: Up to $100,000
• VP/CFO: Above $100,000 Can vary by category, vendor, or department.

What if my approver is unavailable?

System handles via:

• Delegation settings (vacation rules)
• Escalation after timeout
• Alternate approvers
• Emergency approval process Ensures no delays in critical purchases.

Can I see where my request is in approval?

Yes, full visibility:

• Current status
• Approval history
• Pending approvers
• Expected timeline
• Comments from reviewers

Reporting

What are the most useful purchasing reports?

Key reports include:

• Open PO report
• Spend by category/vendor
• Requisitions in process
• Price variance analysis
• Vendor performance
• Savings tracking

How do I track maverick spending?

Reports identify:

• Purchases without POs
• Off-contract spending
• Unauthorized vendors
• Split orders to avoid limits
• Policy violations

Can I analyze spending trends?

Yes, analytics include:

• Year-over-year comparisons
• Category trends
• Seasonal patterns
• Price inflation tracking
• Budget vs actual

Vendor Portal

What can vendors do in the portal?

Vendors can:

• View POs
• Update order status
• Submit invoices
• Track payments
• Update profile
• Download documents

How do vendors get portal access?

1. Enable portal for vendor
2. System sends invitation
3. Vendor creates password
4. Immediate access
5. Training resources available

Is the vendor portal secure?

Yes, security includes:

• SSL encryption
• Two-factor authentication
• Role-based access
• Session timeout
• Audit logging

Integration

Does it integrate with procurement cards?

Yes, P-card integration:

• Import transactions
• Match to POs
• Code expenses
• Route for approval
• Reconcile statements

Can I connect to supplier catalogs?

Yes, punch-out capabilities:

• Access supplier sites
• Shop with contract pricing
• Return cart to system
• Create requisition automatically
• Maintain compliance

How does budget checking work?

Real-time validation:

• Checks available budget
• Considers commitments
• Warns or blocks based on settings
• Suggests alternatives
• Tracks all decisions

Best Practices

How can I reduce processing time?

• Use catalogs and templates
• Enable mobile receiving
• Automate three-way matching
• Set up blanket POs
• Use vendor portal
• Implement approval delegation

What are common purchasing mistakes?

Avoid these issues:

• Creating PO after receiving
• Splitting orders to avoid approvals
• Not checking budgets first
• Ignoring vendor performance
• Missing contract opportunities
• Poor receipt documentation

How do I ensure compliance?

• Enforce requisition process
• Regular vendor audits
• Monitor approval patterns
• Review exception reports
• Document everything
• Train users regularly

Efficiency Tip

Setting up catalog items with pre-negotiated pricing speeds requisition creation and ensures contract compliance.