Purchase Request SOP

Example ProcurementStandard Operating Procedures 1.Title:Standard Requisition2.Policy6130: Purchasing Reference: Purpose & Overview The purpose of this document is to provide users with sufficiently detailed information to complete Standard Requisitions in accordance with company policy and central administration requirements. Requisitions are often subject to additional policies and company regulations. The Purchasing Department receives requests generated by users for products and services that require a Purchase Order. These requests usually consist of quotes, estimated costs and may require a bidding process. Procedure A. Definitions Standard Requisition: A request for goods and/or services from a non-employee individual or entity greater than $4,999. Supplier: A non-employee individual or entity. Charge Account: Indicates the funding source used to pay each line item on a purchase requisition and includes fund, department, cost center, account, supplemental, and project segments.Requester: Indicates the employee requesting the purchase and drive standard approval workflow. This may be different from the employee entering the transaction.B. Requirements a. Requisition Line - Line Type: Select Goods or Services. - Item Description: Enter a description of the good and/or service requested. Special instructions to Buyer should be added in the Notes to Buyer box rather than in the Item Description.- Category Name: Enter All Items or select the appropriate category.- UOM (Unit of Measure): If Line Type is Goods, enter “EA” for each. This field will not display if Line Type is Services.- Price: This field displays if Line Type is Goods; enter estimated amount for the item.- Supplier Existing Supplier: Select appropriate supplier in the system. New Supplier: Select New Supplier and enter the Supplier Name. Unknown Supplier: Leave blank.- Attachments: Documentation should be attached at the top of the requisition. Forms: Upload forms applicable to the specific transaction according to policy requirements. Supplier Quotes: Upload any quotes that have already been received for the request.Request Details: Upload specifications for requisition. Department-Specific: Upload additional documentation according to your department business process.- Delivery Requester: The requisition will be routed to the supervisor of the requester for review and approval.Urgent: If the request is urgent, update to Yes and enter a Need by Date. Need by Date: Default is 7 days. Update if urgent.Deliver to Location: Select location for delivery. - Billing: Enter funding source information for the transaction. Each line of a requisition must have a funding source entered.Project Number: Ten-digit project segment.Task Number: 01 for Goods – 02 for services. Expenditure Type: Six-digit account segment.Expenditure Organization: Five-digit department segment. - Note to Buyer: Any special instructions should be entered for Purchasing. Include anything that the buyer may need to know including the status of contract review with General Counsel.- Justification: Enter the business purpose.- Approval Workflow Funding Source Person: The requisition will be electronically routed to the funding source person of the department segment entered for each Charge Account for compliance and budget review and approval.Supervisor: The requisition will be electronically routed to the supervisor of the employee that is entered as the Requester for strategic review and approval.Additional Approval Levels: The requisition will be electronically routed to additional levels of approval for higher dollar amounts. - Up to $25,000: Project Manager - Between $25,000 and $100,000: Department Head - Greater than $1000,000: Vice President - Review & Payment: Purchasing will review each Requisition for compliance and approve or return these requests. Forms: Confirm that all required forms are attached according to company policy and procedure.Details: Collaborate with departments to gather all information and approvals for the requisition.Supplier: Confirm and/or enter according to PO. Obtain Vendor Information Form, if necessary.Approval: Confirm all non-purchasing approvals are received and initiate Purchase Order approval workflow.Issue PO: Purchase Orders are issued by Purchasing and sent to the Supplier, Requester and Approvers. Ok to Pay: Once the goods and/or services have been received, the requesting department will need to complete the payment approval form. C. Supporting Documentation Purchase Request form: Complete and email to Accounts Payable. Use applicable form based on purchase amount. Failure to use the proper form will result in rejection of your purchase request.Contract/Agreement: Written contracts and/or agreements. Supplier Quote: Written quotes that include supplier information, item descriptions, and prices.Request for Sole Source Justification form: Applies to purchases $25,000+. Complete and attach to requisition when requesting a sole source. Purchasing reviews and rejects/approves. Bidding Exemption form: Applies to purchases $100,000+. Complete and attach to requisition. Ok to Pay form: Use this form to approve and pay for goods and services received. D. Best Practices Ensure the Requester and Funding Source are correct prior to submitting to ensure standard approval workflow is correct.Attachments should not contain sensitive information. Attach all documentations to the top of the Requisition for ease of access to all attachments.Notes to Buyer should include all relevant information for the transaction to proactively process the request.