Karnataka Strips Limited
Purchasing User Manual
Table Of Contents
REQUISITIONS TO PO CYCLE....................................................................................................................... 2
CREATION AND APPROVAL OF A PURCHASE REQUISITION................................................................2
CREATION OF RFQ, QUOTATION AND QUOTE ANALYSIS.....................................................................8
CREATION AND APPROVAL OF PURCHASE ORDERS............................................................................17
RECEIPT OF GOODS CYCLE........................................................................................................................ 23
CREATION OF GRN........................................................................................................................................... 23
IMPORTED GOODS PO CYCLE.................................................................................................................... 33
CREATION OF IMPORTED PO WITH CUSTOMS DUTY........................................................................................... 33
BLANKET PURCHASE AGREEMENTS AND RATE CONTRACT ITEMS...............................................38
BPA PROCESSING............................................................................................................................................. 38
RETURN TO VENDOR TRANSACTION AND RECEIVING CORRECTIONS..........................................44
RETURN TO VENDOR TRANSACTIONS................................................................................................................. 44
Receiving Correction Transaction.................................................................................................................... 47
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Requisitions to PO Cycle
Following Steps are involved in Conversion of a Requisition (Indent) to a Purchase Order:
1. Creation and Approval of a Purchase Requisition
2. Creating the Requisition into Request for Quotation (RFQ)
3. Entering the Data Received by Supplier as Quotation against the RFQ
4. Quotation Comparison
5. Conversion of a Selected Quotation into Purchase Order
6. Approval of Purchase Order and Communication to Supplier
Creation and Approval of a Purchase Requisition
You can manually create requisitions as per the following procedure. Navigate to Requisitions
Requisition (Localized)
1. Click on the Open Button to Enter a New Requisition.
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2. Enter Requisition Details with available Data. Fields shown in Yellow are Mandatory. In case the
supplier is known to user raising the Requisition, it might be keyed in. Otherwise, Leave the supplier
field as blank as shown above.
3. User can also check the prior purchase details of this Item using the Catalog Button.
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4. Search in the Above Screen Based on Item Number.
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5. Details about prior purchase of Item would appear in the Prior Purchase Tab. Choose the particular
Record which you want to choose for the purpose of getting a Price estimate.
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The price of Requisition gets updated as per the Last Purchase Price.
6. Requisition Status is Still Incomplete. Click on the Approve Button.
7. The system would generate a notification asking for approval.
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8. Approver will get notification in his notification summary window. He/She can Approve/Reject/Return
back the requisition. After requisition is approved by approver, requestor will get notification in his
notification summary screen.
9. The requisition status changed from In Process to Approved. No changes can now be made to this
Requisition.
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Creation of RFQ, Quotation and Quote Analysis
10. The requisition now needs to be converted into a Request for Quotation (RFQ). To convert the
Requisition into an RFQ, Navigate to PURCHASING > AUTOCREATE
11. Select the Requisition and Choose Document Type as RFQ.
12. Choose the Option as Automatic Mode for creation of RFQ. Following window would pop up.
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13. User can choose a supplier List in field Supplier List Name. RFQ would be created for all those
suppliers included in the list.
14. Navigate to RFQs India Localized Screen and Query for the RFQ Generated.
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15. Enter all the Necessary Details in the RFQ. Details like Due Date, Close Date etc can be entered in
the Quotation. Also the Suppliers and other terms can be entered at this stage. Click on the Supplier
Button to see what all suppliers are included in the RFQ list.
16. Change the Status of Quotation from In Process to Active by choosing the Option from LOV.
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17. Once the Quotation is Active, It is ready for Further Processing. Also, the taxes can be entered on
Quotation at this stage if all the suppliers fall under same applicable taxes. It is recommended that
taxes be entered on Quotation stage and not at RFQ stage.
18. Navigate to Tools > Copy Document to convert this RFQ into Individual Quotations in the names of
Suppliers.
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19. Like Shown Above, Quotation should be generated supplier wise.
20. Navigate to the Purchasing > RFQ and Quotations > Quotations (Localized) to view the quotations
generated.
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Enter taxes on this Quotation.
21. Similarly, Enter the Tax Details for every quotation as Applicable. Assuming that suppliers have
responded to your quotation with their own quotes, the price in the Quotation would need to be
changed. Follow the below steps to change price in quotation.
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22. Now change the Status of Quotation from In Process to Active only when the supplier has responded
with his price. Only after the quotation status has become Active, Quote comparison would be
possible.
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23. Navigate to Quote Analysis Localized Screen in order to get the Quote Comparison based on Landed
Cost.
24. Search for the RFQ number against which the Quotations have been received. Scroll to the Right of
Comparison screen to see the price comparison.
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Based on judgment, Purchase Manager would choose one of Quotations to be converted into a PO.
Assume that in this case, Price per unit is lowest for Quotation 16, Purchase Manager goes in for this
only.
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Creation and Approval of Purchase Orders
25. Navigate to Quotations Localized screen in order to convert this Quotation into a Standard PO as
shown below.
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26. Navigate to Purchase Orders Localized screen and query for the Number 119.
27. The Purchase Order gets copied along with Taxes and the Price as given in Quotation. Most of the
data required also gets copied from the quotation. Open the main Purchase Order window. Notice
that it is generated in the In-complete status.
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28. Click open the Shipments Button. Give Necessary details about the ship to location which would
determine where the goods have to be received. Follow the steps as shown below.
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Receiving Controls
29. Choose the Receipt Routing as one of the below:
o Direct Delivery: As soon as GRN is made, Inventory is updated. This option should not
be chosen as far as possible.
o Standard Receipt: Goods have to be first Received (GRN) and then they have to be
Delivered to Inventory (Delivery)
o Inspection Required: Goods have to be first Received (GRN), then it lies pending for
Inspection and in the third stage the accepted goods can be Delivered into Inventory.
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30. Navigate to Distributions Button to Specify Ship to Location. This would ensure a default ship to
location for the receipt. It is always advisable to provide this data to system.
31. It is possible to break the shipment into two different locations by breaking up the quantity and
providing different ship to lines.
32. Navigate back to the main PO Screen and Click on the Approve Button. The submit approval window
would open up.
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33. Pressing on the OK Button would generate an approval notification for the approval set as per the
approval hierarchy.
34. Approver can have one of the following actions:
o Approve the PO
o Approve the PO and also Forward it to someone else
o Forward the PO for some other person in organization
o Reject the PO
o Reassign the PO to some other employee
o Request information from the preparer
35. Assuming the approver has gone ahead and approved the PO, the status of PO would change to
Approved.
36. The PO can now be sent to supplier by taking the printout or any other suitable method.
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Receipt of Goods Cycle
Following Steps are Involved in Conversion of a Requisition (Indent) to a Purchase Order:
1. Creation of GRN – Excise Registers get hit at this stage. Inventory position does not get updated.
2. Inspection of Goods – Goods can be accepted or rejected
3. Delivery of Goods into Inventory – Inventory position is updated.
Creation of GRN
1. Navigate to India Local Purchasing > Receiving > Receipts Localized. Click on the new button as
shown below.
2. Search with the PO number in find screen.
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3. In the receipt header window, click on the small window at the right hand bottom corner of
screen. The India Localization DFF screen would open up. Fill all the parameters as shown in the
screen shots below.
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4. Press on OK and the Receiving Line screen would open up. Select the line by checking the box
and enter the quantity for which GRN has to be made. GRN can be made for both Part as well as
Full quantity.
5. Save the transaction. GRN Number would be generated. Press on the Header Button above and
note the GRN number generated.
6. Navigate back to Find Receipts India Localized and search for your GRN number.
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7. At this stage, any taxes which need to be added can be done. Assume that some freight
component of tax needs to be added at this stage.
8. Apply and save the tax. Come out of this window. Also close down the GRN screen. The
following message would pop up on screen. Click on Yes. This would fire a program in the
background which would update the RG Registers and also pass the accounting entries for your
receiving transaction.
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9. Navigate to Tools > View Accounting and Tools > View Registers to see the accounting entries
generated and the RG entries.
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10. Navigate to Purchasing > Receiving > Receiving Transactions to show the current status of
receipt in Pending Inspection status.
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11. Click on the Inspect Button. Notice that Inspection Status is coming in Red Color and it is giving
the message that the goods need to be inspected before they can be delivered into inventory.
Assume that Quality person has accepted 4 quantities and rejected 1.
Save the record. System would fire the program Receiving Transaction Processor in background.
12. Navigate back to Receiving Transactions Window and see that there are now two lines. The line
with Quantity 4 is with accepted status and the line with Quantity 1 is with rejected status.
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13. For the accepted line, enter the sub-inventory and locator details as shown in window and save
the record. The system would again run the Program Receiving Transactions Processor and
India Receiving Transactions Processor to pass the accounting entries and also update the
registers. Navigate to India Local Receiving to View the Accounting Entries.
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14. You can see the Quantity Update in the Material Transaction window. Navigate to Receiving
Transactions Summary Status window to view all the details.
15. The Receiving Cycle is complete.
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Imported Goods PO Cycle
Following are the deviations in an Imported Goods PO as compared to a Domestic PO:
1. At the time of raising the PO, the Taxes which would be applied are Customs Duty and Additional
Customs Duty.
2. In the Account Payables Module, Interim payment needs to be done to the C&F agent by means
of a BOE invoice. This activity would be done by the Accounts people.
3. At the time of Receipt of Goods, BOE invoice needs to be applied. Only after the BOE invoice
has been applied can the goods be received into Inventory.
4. The process of raising an Indent, Calling quotations, evaluating them and conversion of the same
to a PO remains the same. For the purpose of training, it is assumed that the user has already
done all those processes. We would take the training forward from the point of raising the PO.
Creation of Imported PO with Customs Duty
1. Raise a PO on an Imported Goods Supplier. The Purchase order would be raised in foreign
currency (Say USD). The taxes however have to put in INR.
2. Click on the Currency Button which would open up a window where in the name of foreign
currency has to be given. Give the currency and also choose the conversion type which
needs to be used.
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3. The currency in PO would change to USD. Go to the Taxes Window on main screen. Herein
specify the Customs Duty and CVD as the taxes. Also change the currency of these taxes to
INR. System would calculate the amount based on the conversion rate type defined at the
time of raising the PO.
The tax amount which gets calculated is shown in both USD as well as INR.
4. Approve the PO as already explained in the previous section. The notification would go to
the approver as per approver hierarchy.
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5. Assume that the goods have reached the Port. The BOE invoice amount has already been
paid to the C&F agent and he has made that payment to Customs Authority. Goods are now
ready to be received. Navigate to Receiving > Receipts Localized Window. Click on New to
enter the receipt.
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6. Click on Apply BOE button to apply the BOE invoice on to the receipt. This would signify to
the system that Customs duty payment has been made to the authorities by C&F agent.
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7. The above screen shows all the BOE invoices which have been raised in system, the ones
in which some amount is still pending. Choose the correct invoice and enter the amount
which is to be applied. The open amount in BOE Invoice should be more than the Amount to
apply otherwise the system would give an error.
8. Notice above that once correct amount has been applied, the Apply BOE button grays out.
9. The receipt can now be progressed exactly as shown in the previous section in steps 8 to
15.
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Blanket Purchase Agreements and Rate Contract Items
Blanket Purchase Agreement follows the following route of Operation:
1. Raising a Blanket Purchase Agreement
2. Entering the Terms of Agreement including factors like Minimum Release Quantity
3. Approval of Blanket Purchase Agreements (BPA)
4. Making a Release for the applicable quantity against the BPA
5. Making a GRN of Released Quantity and following the usual Receipt Cycle
BPA Processing
1. Navigate to India Local Purchasing > Purchase Orders > Purchase Orders Localized. Open the
window to create a new Purchase Order as already explained. In the Document Type Field,
Choose Blanket Purchase Agreement instead of a standard Purchase Order.
2. Enter the Items for which the BPA is to be raised. In this case, we are taking the example of
Contract Labor wherein the rates are different depending upon whether the labor type is:
a. Skill Male Labor
b. Unskilled Male Labor
c. Unskilled Female Labor
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3. Navigate to the Agreements tab to enter the specific terms of agreement of the BPA. This is
limited to only the minimum agreed quantity. Some indicative terms have been defined as shown
below.
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4. Navigate to the Terms Button in bottom of screen and enter any other additional information
which you want to enter. You can also specify whether you want to enter the supplier acceptance
for a particular agreement. All that is described below.
5. Save the agreement. Just like in the case of a PO, a number is allotted to the BPA and it needs
to be approved. The approval process through notification has already been described in the
document.
6. Enter any applicable taxes which might be there on the taxes tab.
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7. In case of a BPA, based on the usage, periodically Release has to be made. For making a
release against the BPA, navigate to India Local Purchasing > Purchase Orders > Releases
(Localized)
Click on the Open Button to enter the Release.
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8. Enter the release details. Price would automatically come from the BPA. Only the item and
quantity for which the release has to be made needs to be entered. You can also view the terms
of agreement by clicking on the Agreement button. Additionally, to enforce the terms of
agreement, if the release quantity on any of the lines is less than the BPA quantity, the system
would give an error.
Amend the quantity in release or in BPA to proceed forward in this scenario.
9. Save the document. The system would generate a release number against the BPA number. In
this case, since the BPA number is 124, this particular release would be identified by the number
1.
10. Any taxes as applicable can be entered at the release as well. The release also needs to be
approved by following the approval hierarchy. Once the approval is done, the Release would
come in the Approved status.
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11. For making the Receipt against this release, navigate to India Local Purchasing > Receiving >
Receipts (Localized). Click on New to enter a new receipt. In the find screen, along with the PO
number, provide the release number as well.
12. The receipt process is exactly the same as already described above.
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Return to Vendor Transaction and Receiving Corrections
There are some miscellaneous transactions like RTV (Return to Vendor) and Receiving Corrections
which would be taken in this section.
Return to Vendor Transactions
1. For the purpose of illustration, let us assume that the receipt which we had made in section 1 for
4 quantities of AC Motor had one faulty one which has to be returned to supplier. For entering the
RTV transaction, Navigate to India Local Purchasing > Receiving > Return to Vendor (Localized).
2. Click on New and in the find window, search using the Receipt Number. In our case, receipt
number is 50.
3. You would see two lines in the screen which opens up – One for the quantity which we had
accepted and delivered into our inventory and the other which we had rejected. You can
distinguish the lines by looking at the inspection status field.
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4. Select the record for accepted quantity. In the Mandatory Quantity field, enter 1 as the quantity
which is to be returned. Also enter information in the RMA Number field. Filling information in this
field is mandatory.
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5. Scroll to the right end of the line to DFF window. In the pop up window, select India Return to
Vendor as the context.
6. Fill the data in DFF window as shown. In case this information is not filled properly, the system
would not generate Excise Invoice Number for dispatch.
7. Save the record. Search for the return using the find window and give Receipt number as the
search parameter.
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8. The system automatically generates excise invoice number for which print can be taken. Goods
can be dispatched as well. System would automatically pass a debit memo on supplier.
Receiving Correction Transaction
1. Receiving Correction can be done in cases of Emergency or a faulty transaction. For illustration
purpose, assume that the Quantity we rejected in quality now needs to be accepted due to a
plant emergency.
2. Navigate to India Local Purchasing > Receiving > Corrections and search on the basis of Receipt
Number
3. Choose the Transaction against which the transaction type says ‘Reject’. Give the quantity field
as -1 which denotes that the quantity which is lying in Rejection needs to be reduced by 1.
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4. Save the transaction. Navigate to Receiving Transactions window and query for the GRN number
again.
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5. You would be able to see that the Corrected quantity is now available in Not Inspected status as
against the rejected status earlier.
6. Inspect the material and give an accept rating. After that, the material would be delivered into
inventory. Any emergency situation can be rectified using this methodology.
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7. Save the record. System would again run Receiving Transactions Processor program in the
background and make the GRN ready for the Deliver Transaction. Navigate again to the
Receiving transactions window and repeat the process as shown below.
8. System would again run the Receiving Transactions processor and India receiving transactions
processor program that would pass the required accounting entries.
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