Welcome to theProcurement Users Group

Wednesday, July 27, 2005

8:30am – 11:30am

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Today’s Agenda

• Announcements• Presentations

– Fixed Asset Trade-ins– Adding Freight Cost – Approvals– What not to do on a Purchase Order

• Breakout Session• Q&A Session

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Announcements

• Service Contracts >$50,000 need to be reviewed by State Purchasing Bureau (>$25,000 if sole source)

• Please do not change Service Contract (O4) with a 9000 Business Unit

• Deviation Request Process• Address Book Vendors• Upgrade to 8.10• Received not Vouchered Report on Menus

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NIS Team

NIS Administrator Amy Archuleta

Address Book/AR/Grants Margo Sawyer

Fixed Assets/AP/General Accounting

Stacey Mundt

Procurement/Inventory/Projects Kay McKay

Human Resources Deb Bandiola

Payroll Steve Lortz

Training Lead Lindsey Miller

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Navigation: Purchasing-Agencies > Inquiries & Reports > Accounts Payable Reports > Received Not Vouchered Report

Fixed Asset Trade-ins

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Trade-In Procedures

• State statutes and policy require that any purchase involving trade in of State of Nebraska property be approved in advance by DAS Materiel Division – State Purchasing and Surplus Property.

• The Materiel Administrator is the sole authority for approving all trade-ins of state property. The surplus property manager will advise the Materiel Administrator on the feasibility of all trade-ins.

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Requesting Trade-in of Property

• Submit a requisition to state purchasing in the NIS system. – The surplus document (SPN) and supporting

documentation will be included as header attachments to the requisition.

• This procedure must be followed regardless of whether the property being traded-in is a fixed asset within the NIS system.

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Information needed to process the request:

• Age of the equipment being traded• Subjective appraisal of the equipment• Dollar amount being offered as trade-in with

supporting documentation of bids if applicable

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Fixed Assets

Year-end Processes and Reminders

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Fixed Asset - Year-end Processes and Reminders

• By Statute, Year-end Report is due to Materiel Administrator (State Surplus Property Manager) no later than August 31, 2005.

• Report MUST be run with an “as of date” of June 30, 2005. – If this date is not on the report it will be returned to the agency to be

“re-run”.

• Agencies are not responsible for verifying items in a “pending status”. All items unable to be located should be indicated with a “UL” status.

• Agencies should review and reconcile the following reports on a regular basis throughout the fiscal year (at least monthly) :– Unposted Fixed Asset Transactions– No Cost Integrity Report

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Items to be submitted with year-end Report are:

• Auditors Fixed Asset Listing Report (either by tag # or location)

• Memorandum transmitting the report stating that the physical inventory has been completed (with any exceptions noted)

• A copy of the agency’s capitalization policy with any exceptions (or statement that they are abiding by the DAS recommended threshold of $1,500.

Adding Freight Cost

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Adding Freight Cost

• Follow the work instructions for Entering a Voucher with Three-way Match. After clicking Form, Receipts to Match and OK, you will be ready to add a line for freight or delivery charges.

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• OP – Enter 4 (Create New Order Line).• Quantity to Voucher – Enter 1.• Amount to Voucher – Enter the amount of the freight or delivery charge.• Expense Account - Enter Account Number to charge for additional expense (i.e.

xxxxxxxx.521300 for freight expense; xxxxxxxx = Business Unit, 521300 = object account for freight expense.)

• Or Ty - if not defaulted, enter the order type to match the original lines of the PO (i.e. OP, O9, OH, OG, etc.)

• Pay Stat - A (approved)

On the first blank line,Enter the following:

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• Gross Amount on voucher must equal the receipts vouchered plus any freight or delivery charge added.

2552.14

Approvals

How do you know if a document has been approved?

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Status Summary Screen

Review the Status Summary if the TOTAL estimated value is:

• Greater than $5.00: – OW (Requisition thru State Purchasing)– O8 (Deviation Requisition thru State Purchasing)– O5 (Service Requisition thru State Purchasing)– ON (IT Requisition thru DAS DOIT {IM Services} and SPB)– O6 (IT Purchase Order thru DAS DOIT {IM Services})– OT (Communications Requisition thru DAS DOIT) – OI (Vehicle Requisition thru DAS TSB and SPB)– OU (Vehicle Purchase Order thru DAS TSB and Connie H. /

Lyn K.)

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Status Summary Screen

Review the Status Summary if the TOTAL estimated value is:

• Greater than $10,000: – OR (Commodity Requisition one time purchase thru SPB)– OP (Commodity Purchase Order one time purchase thru

Brenda Pape)

• Greater than $50,000: – O3 (Service Requisition thru SPB)

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Status Summary Screen

• Purchase Order Document Types OG, ZO, O9– If Next Status Equals 280 you do not need to check the

Status Summary

• Purchase Requisition Document Types OO, Z6– If Next Status Equals 120 you do not need to check the

Status Summary

• Service Contract Document Type O4– If Next Status Equals 215 you do not need to check the

Status Summary

• Click here to see Status Code Definitions

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• Click Requisition Approval

Approval menus are Available for differentPurchasing documents(Requisition, Contract,Purchase Order)

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• Choose IT Equip & Svcs Req (ON) Approval

Approval menus are broken down into document types (OR,OT, ON, etc.)

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• This screen will show the Orders awaiting approval

• Order Type ON for DAS IM Services

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• To See ALL Orders in the DAS IM Services – Replace the Order Type with an “*”

• You can see the Purchase Order (O6), but cannot approve it from this screen

You may only approve a Requisition Document

from this screen (ON, OR, OT, OI, OO,

O3, O5.)

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• To view specific documents that may or may not be in your Approval Queue, use the Originator section of the Header.

• Enter the Order Number and click Find.

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• Choose the document to review.• Click Row, Status Summary.• Review the Approval Process on the

document.

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• This document is Pending Approval from Both DAS IM Services and State Purchasing Bureau.

Example 1

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• If an approver is bypassed in the Approval process, Bypassed will populate in the Status Column.

Example 2

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• If the Document stays within your Agency, you may generate the next document

Example 3

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• If a Purchase Requisition routes to State Purchasing Bureau, you must wait for State Purchasing to solicit bid opportunities or be notified by State Purchasing of the OO (Direct Purchase Authority Document).

Example 4

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Approval Overview

• If DAS State Purchasing Bureau, DAS IMServices, or DAS TSB is in an approval route, do not assume that the document will be approved.

• Do not print the Purchase Order and send it to the vendor until you have verified the document is approved.

• OR documents greater than $10,000 and at a 120 Status will be assigned to a buyer in State Purchasing to process.

• Look for these Approvers on the Status Summary of your Purchase Orders:– OP (One Time Purchase Order) >$10,000 Brenda Pape– O6 (Computer Hardware/Software/Services Purchase Order) IM

Services – OU (Motor Vehicle Purchase Order) DAS TSB/Constance

Heinrichs

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• Brenda Pape must approve this Purchase Order (OP).

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• DAS IMServices must approve this Purchase Order (O6).

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• Both DAS TSB and Constance Heinrichs have approved this Purchase Order (OU).

What NOT to do on a Purchase Order

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Changing Account Number

• Changing any part of the account number on a detail line(s) of an open purchase order with any receiving activity will cause major encumbrance issues.

• This applies to receiving throughout the year.

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• If you need to change the account number (business unit, object account, subsidiary, or subledger), you must cancel the original line on the purchase order and create a new line on the same purchase order with the correct account number.

The Account numberincludes the BusinessUnit, Object Account, and Subsidiary. Alsopay special attentionto the Subledger field.

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Changing Subledgers

• When changing subledgers (structured or unstructured) on a detail line(s) of a purchase order, you must cancel the original line on the purchase order and create a new line on the same purchase order with the correct account number.

• This includes adding a subledger to a detail line(s) on a purchase order (which was previously blank) after a fiscal year has closed or in the middle of the receiving process.

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Entering a Purchase Order

Do not enter a Preferred order number in thisfield. The system will assign a numberwhen the documentis created.

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Do not enter a preferred order number in this field. The system will assign a number once the document is created.

Generating a Purchase Order

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Reversing Receipts

• Please follow the receipt and reverse receipt processes which are documented in the NIS Procurement Training Manuals (specifically the Reversing Receipts instructions).

• The receipt and reverse receipt process must be completed per the work instructions before any changes or cancellations are made to the purchase order document.

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Receipt (O) Batches

• NEVER void an “O” (receipt or reverse receipt) batch without prior communication with the NIS Team.

• Do not change any part of “O” (receipt or reverse receipt) batch manually via the Journal Entries with Debit/Credit Format application. This includes, but is not limited to, the account number, amounts, purchase order number, etc.

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• The Purchase Order field is 8-digits, so a 5-digit purchase order number must include 3 leading zeros (example – purchase order #12345 must be 00012345 in a correcting journal entry)

• The document type must be all capital letters (example – document type OP must be OP, not Op or op)

Entering a journal entry to correct Received Not Vouchered Report

Break out Session

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• Task #1: Ask questions and work as a group to answer them. Use the paper as a worksheet.

• Task #2: Write one question and its answer on the slip of paper to be picked up by the facilitators and presented to the large group.

• Task #3: Discuss possible improvements to the system. Write the improvement with a possible resolution on the paper.

Breakout Session Instructions – 20 minutes

Q&A Session

Thank you for coming!

Please remember to fill out an evaluation!