23 10 / 2012
Ever since the beginning of PS, we’ve experienced a regular (as well as sporadic) batch process failure in relation to the approval of Pending Purchase Requisitions.
I use terms such as regular and sporadic because this failure has been happening ever since PS go-live but might occur anywhere from 3 times in one day to only once a week, etc. To sum, I can’t really predict it.
Delightfully, a theory has been suggested by my brilliantly technical colleague, as to why this failure happens. I’ve done some field work to confirm this theory, and it appears everything jives.
Revelation: This batch process failure happens when a Requestor submits their purchase requisition exactly on the hour (ie. 9am, 10am, 11am, 12pm, etc.), which happens to be the exact moment the batch process is scheduled to run (every hour on the hour).
These two events (submitting the Req and approving the Req) cannot seem to co-exist peacefully, so in order to ensure smooth waters within the Requisitioning process it looks like we’ll want to avoid contact between them.
Ie. If you are ready to submit your Purchase Requisition try waiting until the hour change has passed (ex. 10:01).
Another mystery solved… I feel like I should request detective badges for our team.
02 4 / 2012
Amount vs. Quantity? Sound odd?
There are two ways you, as Requestors, can set your Purchase Requisitions up. Your decision should really boil down to how you expect invoicing to shake out.
Yes, I said shake out.
Setting your Requisition up by AMOUNT is the best option when you are creating the order to pay for a service, or you have been quoted a set price for a group of multiple items.
Example Scenario 1 – Vendor has quoted you $5500 to fix the air conditioning in your office or complete testing on laboratory samples (let’s assume different vendors, as I haven’t come across one that could offer both services!). In this scenario, you’ll want to set your Requisition up by AMOUNT, and base the order on the $5500 pricing.
Example Scenario 2 – Vendor has quoted you a price of $6000 for 75 widgets. This price includes the cost for all the widgets, freight and the inclusion of a personalized thank you letter from the vendor (you never know!). In this scenario, we don’t really know how much each widget costs individually, nor do we know how much specifically the freight is budgeted at as well as what they are charging us for the personalized thank you letter. Best option in this scenario is to set your Requisition up by AMOUNT, and base the order on the $6000 pricing.
You can also set Requisitions up by AMOUNT for blanket/standing orders. These orders are typically utilized for a certain time period (let’s say, 6 months – 1 yr) and are budgeted for the amount of money the Requestor thinks they’ll spend with that vendor throughout that time period.
Setting your Requisition up by QUANTITY is the best option when you are creating the order for a specific quantity of items, or perhaps a specified number of days/months of work.
Example Scenario 1 – You have requested a quote from a vendor for 4 new office chairs. The vendor has come back to you with a quote of $300 per chair. In this scenario, it’s best to set your Requisition up by QUANTITY, selecting 4 as the quantity, each at a unit price of $300. You order summary will then sit at $1200 as a subtotal.
Example Scenario 2 – You have requested a quote from a vendor for a certain service, and they have come back to you with a quote expecting the work to take 10 days to complete, each day costing you $500. In this scenario, you could set your Requisition up by QUANTITY, selecting 10 as the quantity and have $500 as the unit price. Your order summary will then sit at $5000 as a subtotal. In this scenario also, you do have the option to set the order up by AMOUNT, and just base the order on the $5000 subtotal. Either will work!
Clear as mud?
I know, it’s sometimes a little murky… As a reminder, just think of how the invoice(s) will come in. Multiple invoices? All on one invoice?
Reach out to me if you have a Q!