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OCTOBER 15, 2008

9:00 AM to 11:00 AM

PROCUREMENT CONNECTION

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Technical

Item 1: Proper procedure to liquidate SRM documents.

1. Reduce the line item quantity to that which has been received and invoiced on the line item.

2. Go to statistics tab in the line item detail • Check no more confirmations check box• Check no more invoices expected check box

3. Hit the order button.

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Technical

Item 2: What is the proper process for moving estimated quantities from one line item to another on a PO?– Receive error message “Payment Exceeds

Budget”

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Technical

Item 3: Can you bypass system workflow on special delegations?

Answer: OGC & OAG approvals are required on contracts for Executive Agencies therefore the approval cannot be skipped in the system regardless of special delegation.

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Technical

Item 4: Why would an agency shopping cart that was put on hold route to DGS for processing without agency approval of the cart?

– The proper product category is being used.– The dollar threshold does not require DGS

processing.– Some but not all line items route to DGS.

– Examples: 10484726 & 10495760

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Technical

Item 5: Invoicing Plans: Why can't the purchasing agent check the delivery box and enter the serial numbers into all PO's issued for the lease of a MFD from the Ikon contract once the machine is delivered?

– Comptroller indicates that each PO must be done at the beginning of each appropriate fiscal year.

– How would the system spend 09 money in 08 if done ahead of time?

– If an agency forgets to update a PO who would the supplier call regarding payment? Agency, comptroller, DGS?

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Technical

Item 6: MRP & Inventory Purchases

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Material Requirements Planning Overview

Purpose of today’s overview:• Provide an understanding of MRP & its use • Provide information for use when making

purchasing decisions• Clarify misconceptions regarding the methods of

procurement for inventory

Material Requirements Planning (MRP)

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Inventory & MRP Facts• MRP use is limited for the Commonwealth

• MRP Process Plans, Creates Planned Orders, Converts Planned Orders into Requisitions, and Creates Purchase orders

• Takes into consideration such things as re-order point, prior and future consumption, replenishment, lot size, lead-time and use

• In order to use MRP an agency must have an established MRP Controller, Inventory Planner, and material masters set up for MRP requirements.

• Material masters should be listed as contract line items when a statewide or agency contract is created

MRP does not simply mean “an order for inventory” - MRP is a process -

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High Level Process Flow - Inventory via MRP

Inventory via MRP Process (High Level)

Pur

chas

erA

ppro

ver

Rec

eive

rIn

vent

ory

Pla

nner

Execute MRPStock below

Reorder Point?Create Planned

Order(s)

End

Convert toPurchase

Requisition

Followestablishedprocess for

procurement

Create PO

Approve PO(If required)

Receive intoInventory Stock

(MIGO)

Issue PO toVendor

YesNo

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High Level Process Flow - Inventory Non-MRPInventory via Normal Process (non-MRP)

Rece

iver

Agen

cyAp

prov

erPu

rcha

ser

Com

ptro

ller

Appr

over

SRM

Requ

isitio

ner

Make necessarychanges as

requested byapprover

Followestablishedprocess for

procurement

Create PO

Approve PO(If required)

Receive intoInventory Stock

(MIGO)

Issue PO toVendor

CreateShopping

Cart as DirectMaterial

Approve or RejectCart

Approve

Reject

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Inventory Purchases• There is a misconception that SRM cannot

be used to order inventory items – SRM can be used to order inventory

• Many contract replication requests use the justification “MRP”– 4600010375 with Hershey Creamery for Ice

Cream• Only Corrections ordered for inventory and PO’s

were not generated through MRP• No need to maintain contract in both places –

should be SRM only

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SRM for Inventory

• SRM can be used for inventory purchase orders not procured via the MRP process

• After the product ID (material master) has been entered the “Order as Direct Material” indicator appears:

If non-valuated, use normal process - account assignment is required

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Technical

Item 7: Is there a way to allow shopping carts to be modified after they are fully approved?

– Sole Source/Single Source – many times DGS wants changes made to the carts or additional documents attached.

– Requires a whole new cart– Creates additional work– Increase the processing time waiting for new cart to

be created and approved.

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Technical

Item 8: Full product category descriptions are not visible in SRM/SAP and as a result the wrong categories are being selected.

– The system will not stop a PO that has an incorrect product category.

– What is the reason behind needing a specific category?

– Is it because of reporting of usage in BW?

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Legal

Item 9: What is the definition of subscription”?

Item 10: What are the roles of OAG, OGC & Agency Legal Counsel in the contract approval process?

Item 11: What is a Request for Expression of Interest (RFEI)?

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Business Process

Item 12: Contract attachments• DGS compiled list of contract attachments• Used by Commodity Specialists• Minimum requirement for RTKL• Internal files listed are for DGS purposes• Optional use by agencies• Questions: Susan Rojas

– 717-346-8176 or srojas@state.pa.us

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Business ProcessContract Attachments Continued

•IFB Contract Attachments (Multi Award Hierarchy Contract)

–Electronic Bid utilizing doc builder

–eMarketplace

–Internal File

•IFB Contract/Purchase Order Attachments

–SRM

–eMarketplace

–Internal File

•RFP Contract Attachments (Paper Submittal not using Doc Builder)

–SRM

–eMarketplace

–Internal File

•RFP Contract Attachments (Using Document Builder)

–SRM

–eMarketplace

–Internal File

Location: http://www.portal.state.pa.us/portal/server.pt?open=512&objID=1487&&PageID=469679&level=4&css=L4&mode=2&in_hi_userid=161031&cached=true

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Business Process

Item 13: SRM Supplier -901 Business Partner• R3 Transaction XK03• Enter supplier number, check partner

functions box & hit enter• Supplier partner data is displayed• The -901 business partner indicates they are

registered in the PA Supplier Portal

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Business Process

Item 14: Assignment of Payments• Contract supplier authorizes assignment of payment to another

party.• CVMU creates a “902” Partner Record within the suppliers

master data. – To request a “902” Partner Record - purchaser must:

• Complete “902” Partner Record Request form (found under Procurement Forms on the DGS website)

• Request must include the following info:– Complete name and address of Assignee– Vendor number of the Assignee– Signed letter from the Assignor documenting the assignment of payment– Must be on Assignor’s letterhead

• Multiple Assignees require separate request forms for each• Submit documents to CVMU Resource Mailbox at

ra-co-bfm-cvmu@state.pa.us.• If approved, the Partner Record will be created. If disapproved, the

form will be returned to the requester with the reason for rejection.

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Business Process

Item 15: SRM Helpdesk

• There is an option to leave a message

• If line continues to ring with no answer– Hang up and call the number again

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Business Process

Item 16: Contract Change Notices

• Weekly notice sent by Sue Plecker

• High profile contracts or changes– Special notice is sent

• If a change notice was posted on the website and not included on the weekly Contract Change Notification it was an oversight

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Business Process

Item 17: .xml Invoices that Error OutTwo reports• Weekly IDOC Report is provided to the Commodity

Specialist by IES– Shows what went wrong with the invoice– Commodity Specialist provides instruction to the supplier to

correct the error

• Cancellation Report – run by the Commodity Specialist– Shows cancellations initiated by the comptrollers– Commodity Specialist contacts comptrollers to discuss issues– Commodity Specialist works with supplier and comptroller to

correct issues

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Non-Agenda Items

Additional Information

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Additional InformationSRM/SAP System Upgrades & Support Packs

Upgrades ERP 6.0 Upgrade• Effects all systems including ESS

– Cut-over dates for system unavailability• PA Supplier Portal: Thursday, October 30th 5:00

PM thru November 3rd 6:00 AM • MyCommonwealthWorkplace: October 31st  4:00

AM thru November 3rd 6:00 AM• .xml Supplier Transmittal of Invoices: Thursday,

October 30th 5:00 PM thru November 3rd 6:00 AM

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Additional InformationSRM/SAP System Upgrades & Support Packs

Support Packs• What is a Support Pack?

– Support packs contain all the current “fixes” from SAP in one bundle rather than applying individual notes on an as needed basis. 

– Support packs normally fix things, but on occasion may create a problem. 

– IES will do testing of the Support Packs• All changes as a result of the support packs should be found at this time and

IES will communicate this information to the agencies.– If end users notice anything different in the core or SRM systems once

the support packs are put into production they should report the issue through the helpdesk/remedy ticket process.

• Tentative Schedule for Latest Support Packs:– Development - November 10, 2008– Quality - November 17, 2008– Production - December 6, 2008

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Additional InformationSystem Updates

• Guid Error – Public Advertising Supplier– The contact information for the “public advertising supplier” was

deleted from the vendor record in error – This caused a “Guid” (Globally Unique Identifier) error on bids

created prior to 8/12/08 using the “public advertising supplier”  – This error is undetectable until workflow is initiated– This error is uncorrectable 

• Resolution– The “public advertising supplier” record was corrected– Do not reuse or copy a bid created prior to 8/12/08  – Create a new bid

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Additional InformationSystem Updates

PO Pricing • Line Item Detail (R3 only)• Valuation setting default is “do not adopt” • Requisitioners should not change this setting• Setting is necessary to insure contract pricing is

pulled into the PO

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Additional InformationSupplier Enablement - ERS

Evaluated Receipt Settlement (ERS)• A shortened, easier process to pay suppliers

– Eliminates need for issuing and processing invoices– Upon receipt of order, receiving agency enters GR– Overnight process generates an electronic invoice– 2-way match: PO quantity & GR quantity – Treasury processes payment via ACH

• No action is needed by the comptroller• Supplier did not have to submit a paper invoice• Turnaround time for payment is reduced• Goods Receipts must be done timely!

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Additional InformationSupplier Enablement - ERS

Evaluated Receipt Settlement (ERS) - Pilot Program• Started September 10, 2008• Suppliers:

– Todd Heller, LLC -Contract 4600013343 Glass Beads– Ennis Paint, Inc. –Contract 4600010851 Traffic Line Paint

• Agency: Transportation• Current activity: 2 POs were created and payments were

successfully processed• End of paint season – not much activity anticipated• Investigating expanding the pilot to include:

– Calcium Chloride– Rock Salt– Corrugated Boxes

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Additional InformationSupplier Enablement – Punch-outs

Punch-out Catalogs• Staples – Office Supplies

– Development is in process– Anticipated completion early January– Pilot program to test punch-out with 1 or 2 agencies

• Graybar– Supplier has expressed an interest to do a punch-out– Initial meeting with supplier to be scheduled

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Additional InformationSupplier Information

• Informational Brochures

• To assist agencies in providing guidance to their suppliers– Supplier Response To A Solicitation– Registering As A New Supplier– Registering As An Existing Supplier

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Closing

Questions?

Thank you