SYSPRO's Requisition System enables an operator (who is assigned a requisition user code) to request items required. The request is routed through various user codes and associated authority levels until the final stage, when the request can be converted into a live purchase order, be issued from stock or be supply transferred from another warehouse.
The Requisition System includes the ability to monitor Capital Expenditure. A Capex file, with a designated Capex user, holds the maximum value a group of capital expenditure can reach. All requisitions with this Capex number must be routed through the Capex user code and, if the requisition value causes the maximum Capex value to be exceeded, a purchase order cannot be generated for this requisition.
The Requisition System includes complete route tracking of requests. The routing file stores all routing requests for query and reporting purposes and ensures that the request has been routed through the correct user codes. In addition, the routing file indicates which user code is the holder of the requisition. When the requisition is eventually converted into a purchase order, issue or supply transfer and the item is received into stock, a further routing record is sent to the originator of the requisition to indicate that the goods have arrived.
The user file contains authority information which allows the administrator to restrict a user code to a maximum requisition line value. The authority level also determines the extent to which an individual can change a requisition. Requisition user groups can be defined, enabling you to specify and apply approval levels to all users within a group.
The Requisition System also includes the facility to enter and monitor budgets at group, product class or stock level within a group. Requisitioning of items can then be restricted to the budgeted limits.
When approving a requisition or requisition line, the system checks whether approval is set to User, Group or Product class within group (Purchase Orders Setup - Requisition tab) and then applies the following rules to determine if the approval can be processed:
![[Note]](images/note.png)
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- User level - the system uses the Requisition maximum values defined against the user (User Maintenance).
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Group level - the system uses the Max approval value defined against either the group to which the user belongs (Group Approval Limits) or the Requisition maximum values defined against the user (User Maintenance, whichever is the greater. If no maximum value is defined against the group (i.e. the group limit is set to zero), then the approval limit against the individual user is used.
If the requisition/line is greater than the maximum defined against the group and against the user, then approval is not allowed.
If the group code against the user is invalid or not defined, then no approval is allowed.
If authorized, then routing to the next user occurs as follows:
- The requisition/line is routed on to the Next user for routing against the group.
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If no Next user for routing is defined against the group, then the Route on to user for the user is used.
If no Route on to user is defined against the user, then no routing takes place.
If approved, then routing to the Purchase Order user occurs as follows:
- The requisition/line is routed to the Purchase Order user defined against the group of the originator of the requisition/line.
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If no Purchase order user is defined against the originator's group, then the Route to user to create p/order against the originator is used.
If no Route to user to create p/order against the originator exists, then no routing takes place.
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Product class within group - the system checks the group defined against the user and the product class against the requisition line.
If the Product Class is invalid or not found, then the Group settings are used and the rules as per the Group level are applied.
If the Product Class/Group is valid, then the Max approval value for the Product Class/Group is used.
If no maximum value is defined against the product calss/group, then approval is not allowed.
If the requisition/line is greater than the maximum defined against the product class/group, then approval is not allowed.
If authorized, then routing to the next user occurs as follows:
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The requisition line is routed on to the Next user for routing against the product class/group.
If this is not defined, then the Next user for routing against the group is used.
If this is not defined, then the Route on to user for the user is used.
If none of these are defined, then no routing occurs.
If approved, then routing to the Purchase Order user occurs as follows:
- The requisition line is routed to the Purchase order user defined against the product class/group of the originator of the requisition line.
- If no Purchase order user defined against the product class/group of the originator, then the Purchase order user defined against the group of the originator is used.
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If no Purchase order user is defined against the originator's product class/group or the originator's group, then the Route to user to create p/order against the originator is used.
If no Route to user to create p/order against the originator exists, then no routing takes place.
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If the Requisition system is set up to automatically approve requisitions, then requisitions/lines are automatically approved providing:
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If the value of the requisition/requisition line does not exceed the value defined in the Auto-approving or Auto-approving a line field for your user code (User Maintenance), then the requisition/requisition line is automatically approved by the system. A message is displayed if auto approval has occurred and the requisition line is set to a status of Approved.
The following example illustrates the sequence of steps typically followed to process purchase order requisitions when using manual routing:
Assume you have defined 5 requisition users with the following authority levels:
- User 1 - Add requisitions
- User 2 - Add details
- User 3 - Change details
- User 4 - Approve
- User 5 - Create purchase orders
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User 1 uses the Requisition Entry program to add one of more requisition lines for items that need to be purchased.
User 1 can maintain the lines, add narrations or cancel one or more lines.
User 1 routes the requisition to User 2.
For stocked items, the warehouse record is updated to indicate that a requisition is in progress for the items.
The requisition status at this point is blank.
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User 2 uses the Requisition Maintenance program to add the Detailed Information for the requisition.
User 2 can modify the requisition and add narrations.
User 2 routes the requisition/requisition lines to User 3. Alternatively, User 2 can reroute the requisition back to User 1.
The requisition status at this point is blank.
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User 3 uses the Requisition Maintenance program to change the Detailed Information, including the supplier and pricing details.
User 3 routes the requisition to User 4. Alternatively, User 3 can reroute the requisition back to User 2.
The requisition status at this point is blank.
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User 4 uses the Requisition Entry program to approve the requisition.
User 4 routes the requisition to User 5 to create the purchase order. Alternatively, user 4 can refuse to approve the requisition lines and reroute the requisition back to User 3.
If the requisition is for a Capex item, it is routed to the appropriate Capex user.
The requisition status at this point is R.
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User 5 uses the Requisition Create Purchase Orders program to create a purchase order from the requisition lines.
For stocked items, the Warehouse Quantity on order value is updated and the Requisition in progress indicator is removed.
The requisition status at this point is P.
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The purchase order is sent to the supplier.
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When the goods are delivered, the requisition is updated to inform the originator of the requisition that the goods have arrived.
Note that you need not create a requisition user for each authority level as a single user can have multiple levels of authority. You could, for example have created only three requisition users with the following levels of authority:
- User 1 - Add requisitions, Add detailed information and Change detailed information
- User 2 - Approve requisition
- User 3 - Create purchase orders
This section describes how automatic routing works when Approval level checking is set to User level (Purchase Orders Setup - Requisition tab).
Requisition lines are automatically routed when you add new lines and/or update lines, providing you defined Requisition maximum values for your requisition users (User Maintenance) and providing these maximum values (limits) are not exceeded.
When User 1 adds a requisition line which is within the approval value, the requisition line is automatically approved. If it is not within the approval value, it is routed onto User 2. If User 2 maintains the line, and the line value still falls within User 2's approval values, then the line is automatically approved. If not, it is routed to the next user in the chain.
If no maximum approval values are defined against a user, then no automatic routing occurs.
This example illustrates the sequence of steps typically followed to process purchase order requisitions when using automatic routing.
Assume you have defined 4 requisition users with the following authority levels and maximum values:
| User | Authority | Requisition maximum values | Route on to user | Route to user to create p/order |
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| A | Add requisitions, Add details and Change details | Entering a line = 50 Auto-approving a line = 50 |
B | D |
| B | Approve requisition |
Auto-approving a line = 100 |
C | E |
| C | Approve requisition |
Auto-approving a line = 200 |
D | E |
| D | Create purchase orders |
Auto-approving a line = 400 |
E | E |
| E | Create purchase orders |
Auto-approving a line = 900 |
In addition, you defined the following setup options in Purchase Orders Setup: Check maximum value at - Line level and Time of entry.
Example 1
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User A uses the Requisition Entry program to add a requisition line with a line value of 50.
As the line value is within the Requisition maximum values defined, the requisition line is automatically approved and forwarded to User D for purchase order creation.
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The line value is within the Requisition maximum values defined for User D.
User D can use the Requisition Create Purchase Orders program to create the purchase order from the requisition line.
Example 2
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User A uses the Requisition Entry program to add a requisition line with a line value of 100.
The line value exceeds User A's Requisition maximum values, so the requisition line is NOT automatically approved.
It is automatically routed to User B.
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The value is within the Requisition maximum values defined for User B. User B approves the line and it is automatically routed to user D.
If User B maintains the value or quantity for the line, then the line is automatically approved and routed to user D for purchase order creation.
The requisition is routed to the user defined in the Route to user to create p/order field of the requisition originator (in this case, User A). It is not automatically routed to User E who is defined in the Route to user to create p/order field of User B, because User B did not create the requisition (i.e. User B is not the Originator of the requisition).
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The line value is within the Requisition maximum values defined for User D.
User D can use the Requisition Create Purchase Orders program to create the purchase order from the requisition line.
Example 3
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User A uses the Requisition Entry program to add a requisition line with a line value of 800.
The line value exceeds User A's Requisition maximum values defined, so the requisition line is NOT automatically approved.
It is automatically routed to User B.
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The line value exceeds the Requisition maximum values defined for user B, so cannot be approved by User B.
If User B maintains the value or quantity for the line, then it is automatically routed to User C. Otherwise, User B must manually route the line.
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The line value exceeds the Requisition maximum values defined for User C, so cannot be approved by User C.
If User C maintains the value or quantity for the line, then it is automatically routed to User D. Otherwise, User C must manually route the line.
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The line value exceeds the Requisition maximum values defined for User D, so cannot be approved by User D.
If User D maintains the value or quantity for the line, then it is automatically routed to User E. Otherwise, User D must manually route the line.
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The line value is within the Requisition maximum values defined for User E. User E can approve the line and use the Requisition Create Purchase Orders program to create the purchase order.
The following terminology is used in the requisition system:
| Term | Description |
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| Requisition | A requisition is a request for goods and/or services required by an employee or department. A requisition can consist of one or many requisition lines. |
| Requisition line | A requisition line contains the information regarding the request for a particular item or service. |
| Capex | This refers to Capital expenditure. Capital expenditure is a widely accepted Accounting term referring to the expenditure a company makes on fixed assets. The requisition system allows capital expenditure limits to be defined, and all requests earmarked as Capex must be routed through the Capex user. |
| Originator | The Originator is the person who first created the requisition. The system retains the Originator's user code against the requisition. |
| User code | Each individual with access to the Requisition system is assigned a user code. |
| Authority level | An Authority level is held against each user code to determine which functions are permitted. For example, a user can be authorized to approve requisitions, but will not be allowed to create a purchase order from the requisition. |
| Requisition maximum values | These are the maximum values for which a user can
create and/or approve a requisition or requisition line. These
values can be defined against requisition users in addition to
the Authority levels or they can be defined against
Requisition User Groups. The maximum values apply either to individual requisition lines or entire requisitions and are checked either at entry time or approval time, depending on your selections at the Check maximum value at setup options (Purchase Orders Setup - Requisition tab). |
| Route | The route function transfers the requisition to the next user code. You can route a requisition, requisition line or multiple requisition lines. |
| Acknowledge | The Originator of a requisition is notified that the goods have arrived in stock (once the purchase order receipt is entered) as the requisition is displayed within the Routed to you function. The Originator acknowledges that the goods have arrived and the requisition is no longer displayed. |
| Notes | Separate narrations can be held against Requisitions and Purchase orders as comment lines. |
| Hold | A requisition or requisition line can be placed on hold to prevent further processing. The on hold status must be removed by the person who placed the requisition on hold before it can be cancelled or processed to completion. |
| Holder | The Holder refers to the user currently in possession of the Requisition. This effectively refers to all requisitions displayed during the Routed to you function. |
| Approve requisitions | When the contents of the requisition are accepted as correct, the user with the appropriate authority level approves the requisition and the purchase order can then be generated. |
| Status |
The status indicates the present condition of the requisition and may be one of the following:
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| Review of sales orders | The purchase order generated by the requisition system can be allocated to a sales order quantity on backorder. |
| Group | A requisition group refers to an entity to which various requisition users are attached. Groups enables you to define sets of requisition users with the same authority levels for requisition approvals. Requisition budgets are defined and applied per group. |
| Budget | Budgets refer to the monetary or quantity values
assigned to requisition user groups for specific months and
years. Budget values are checked against the group of the
approver, not the group against the originator. All requisition users must be attached to requisition groups before budgets can be used. |
Configuring the requisition system at user level
This task describes the steps required to configure the Requisition system for processing purchase order requisitions when the Approval level checking is set to User level (Purchase Orders Setup).
When approval level checking is at User level, you can set the Check maximum value at option to Line level or Requisition level and to Time of entry or Time of approval.
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Navigate to the Requisitions tab of the Purchase Orders Setup program.
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Select User at the Approval level checking option.
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Indicate your selections for the other options on this tab.
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Use the User Maintenance program to define the requisition users and their authority levels.
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Optionally print a list of requisition users (List of Requisition Users) to verify that the correct information was entered for each user.
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Select the Requisition Capex Maintenance program to define details for Capital Expenditure items.
This step is required if you want to track the expenditure of Capex items.
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Optionally print a list of Capex numbers (List of Capex Numbers) to verify that the correct information was entered for each Capex number.
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Select the Purchase Order Document Format program to define a print format for requisitions.
This step is required only if you want to print requisitions.
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Select the Supplier Maintenance program to update each supplier with the correct fax/email details (Purchasing tab).
This step is required only if you want to fax/email requisitions to suppliers.
Configuring automatic approval for requisitions
This task describes the steps required to configure the Requisition system to automatically approve and route requisitions/requisition lines.
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Automatic approval can only be achieved when approval level checking is at User level (Purchase Orders Setup - Requisition tab). |
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Navigate to the Requisitions tab of the Purchase Orders Setup program.
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Select User at the Approval level checking option.
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Navigate to the User Maintenance program.
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Indicate the Routing information for each user.
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Indicate the Requisition maximum values for each user.
These values will apply either to individual requisition lines or to entire requisitions, depending on your selection at the Check maximum value at option (Purchase Orders Setup - Requisition tab).
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Configuring the requisition system at group level
This task describes the steps required to configure the Requisition system for processing purchase order requisitions when the Approval level checking is set to Group level (Purchase Orders Setup):
When approval level checking is at Group level, you can set the Check maximum value at option to Line level or Requisition level and to Time of approval.
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Navigate to the Requisitions tab of the Purchase Orders Setup program.
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Select Group at the Approval level checking option.
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Indicate your selections for the other options on this tab.
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Use the Requisition Group Maintenance program to define your requisition groups.
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Use the Group Approval Limits program to define the groups approval limits for each group created.
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Use the User Maintenance program to define the requisition users and their authority levels as well as indicate the group to which they belong.
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Optionally print a list of requisition users (List of Requisition Users) to verify that the correct information was entered for each user.
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Select the Requisition Capex Maintenance program to define details for Capital Expenditure items.
This step is required if you want to track the expenditure of Capex items.
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Optionally print a list of Capex numbers (List of Capex Numbers) to verify that the correct information was entered for each Capex number.
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Select the Purchase Order Document Format program to define a print format for requisitions.
This step is required only if you want to print requisitions.
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Select the Supplier Maintenance program to update each supplier with the correct fax details (Purchasing tab).
This step is required only if you want to fax requisitions to suppliers.
Configuring the requisition system at product class within group level
This task describes the steps required to configure the Requisition system for processing purchase order requisitions when the Approval level checking is set to Product class within group level (Purchase Orders Setup):
When approval level checking is at Product Class within group level, you can only set the Check maximum value at option to Line level and to Time of approval.
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Navigate to the Requisitions tab of the Purchase Orders Setup program.
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Select Product class within group at the Approval level checking option.
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Indicate your selections for the other options on this tab.
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Use the Requisition Group Maintenance program to define your requisition groups.
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Use the Product Class Maintenance program to define your product classes.
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Use the Group Approval Limits program to define the product class approval limits for each product class with each group.
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Use the User Maintenance program to define the requisition users and their authority levels as well as indicate the group to which they belong.
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Optionally print a list of requisition users (List of Requisition Users) to verify that the correct information was entered for each user.
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Use the Requisition Capex Maintenance program to define details for Capital Expenditure items.
This step is required if you want to track the expenditure of Capex items.
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Optionally print a list of Capex numbers (List of Capex Numbers) to verify that the correct information was entered for each Capex number.
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Use the Purchase Order Document Format program to define a print format for requisitions.
This step is required only if you want to print requisitions.
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Use the Supplier Maintenance program to update each supplier with the correct fax details (Purchasing tab).
This step is required only if you want to fax requisitions to suppliers.
Configuring budgets for the requisition system
This task describes the steps required to configure the Requisition system to use requisition budgets.
Requisition budgets can only be defined against requisition user Groups, therefore all requisition users must be linked to a requisition user group.
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Use the Requisition Group Maintenance program to define your requisition groups.
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Use the User Maintenance program to link all requisition users to a requisition user group.
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Navigate to the Requisitions tab of the Purchase Orders Setup program.
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Select Budgets required at the Requisition budgets option.
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Indicate your selections for the other options under the Requisition budgets option.
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Use the Group Budgets program to enter the budgets for each user group.
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Use the Operator Maintenance program (Security tab > Activities > Module: Purchase Orders) to indicate which users (if any) can override the budget limits.