This section provides the proposed "To-Be" process of procurement management. The following recommended solutions are the suggested solution for JDE procurement management implementation.
It is suggested that the client should process purchase requisition through JDE system to perform all internal formalities before creating purchase orders. It is the best practice to process purchase requisition. Being subject to approval by authorized persons, the purchase requisitions will be converted to Request for Quotation (RFQ) or directly purchase order (if there is a price list provided by the supplier). The request for quotation process will be performed, if required.
Purchasing department/project manager will convert purchase requisitions after GM approval to RFQ through the system. RFQ can also be prepared in the system if the purchase requisition does not exist (if the scenario is applicable).
Long term contract (if exists) should be defined as Blanket Orders to keep the track of all released purchase orders under the same supplier contract. The original contract will remain in the system and its number will be populated in supply orders.
The purchase order will be created in different ways:
Release from contracts as purchase order
Convert from quotation
Directly entered in the JDE as per project planning and demand
Order suggestion by re-order point
JDE EnterpriseOne provides a facility for online approval of purchase orders through workflow. This can be used instead of or in addition to the hard copy approval. Based on the value of the purchase order, different authorized personnel will be set up for each purchase order type.
JDE EnterpriseOne requires the set-up of approval route codes to use electronic approval through the system. Approval route codes should have all the details of approving authorities and their approval levels for requisitions and purchase orders. It was decided to not use the approval for blanket orders.
It is suggested to revise the purchase order in certain cases because of price changes or an additional request. Purchase requisition will be revised to be synchronized with the purchase order. For any revision, the authorized person's approval is required. All revisions will be tracked in the system and displayed by inquiry or printed by reports. The revision can be printed on the purchase order.
GNR is entered by goods receiving staff at the warehouse. It will be identified by the "OV" document type and its number will be system generated. It is suggested that the OV number should be used as the GRN number.
Before processing a GRN, the following tasks must be performed:
Related landed cost rules must be attached to the purchase order or entered during GRN entry. All fixed percentage and amount components should be mentioned in the landed cost rule during the setup. If revisions are required in future, it should be performed by the Finance team.
Variable landed cost components should be revised for each GRN before the entry of GRN in the system. This can be done by the Finance team as per the company policy. All related accruals will be created automatically through the system and should be offset later against the actual invoice of the transporter or port authorities.
During material receipt, both the (partial and full quantity receipt) options are acceptable. If partial receipt is performed, the system provides the option to do keep the remaining quantities open in the PO until the supplier provides the materials and receive the quantities, or cancel the remaining quantities (if the supplier will not supply them at a later date).