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    Ashok
    Update 18C Feature: Fulfill Expense Requisitions for...Answered
    Topic posted November 9, 2018 by AshokGold Crown: 30,000+ Points, last edited March 18, 2019, tagged Create Requisition, Internal Material Transfer, Requisition Processing 
    374 Views, 8 Comments
    Title:
    Update 18C Feature: Fulfill Expense Requisitions for Agreement-based Catalog Items from Internal Sources
    Summary:
    BPA backed items will be sourced internally by default if eligible
    Content:

    Customers

    In Update 18C, we introduced a new feature that was driven off of requirements from the health care sector. The solution on offer should help any customer with similar requirements.

    Business Problem:

    If a requester searches for an item that happens to be both purchasable and available for internal transfer, and if that item was also backed by a BPA, then the system always sourced the item from the BPA. i.e. even if internally available, the system always processed a purchase order for it. Customers wanted a change in this behavior. 

    To quote a health care example, if a nurse at the nurse's station required an item for immediate use, if the item was available in stock, the expectation was to be able to utilize that rather than wait and place an order and expected it to be shipped and then be issued to the nurse. 

    Solution Details:

    A. Configuration:

    The following must be true to use this feature:

    a) Opt-in 'Fulfill Expense Requisitions for Agreement Based Catalog Items from Internal Sources' must be enabled. You will find this opt-in under the feature 'Internal Material Transfers'

    b) Requester must have the privilege 'Create Internal Material Requisitions'

    c) The destination type should be 'Expense'

    d) A valid BPA must exist for the item

    e) The master item must be available in the appropriate Deliver-to Organization

    B. How it works:

    When a requester searches for an item that is both internally transferable and purchasable, if that item has a valid agreement to source, the system will retrieve the search results for display. 

    NOTE: The system will display the BPA details by default (including price and other attributes). The idea is to allow users to leverage the rich functionality that an agreement offers in displaying attributes that describe the item in more detail

    When the user adds the item to cart, the system will source the item from the appropriate source organization and use the transfer price configured for that organization.

    IMPLEMENTATION CONSIDERATIONS:

    1. In order for the system to source the item internally, the internal transfer setup has to be complete. For instance, if there is no valid source organization determined, then the system will not attempt to source the item internally and instead use the agreement

    2. If you are noticing that the system is sourcing the item only from an agreement even though all the setup indicates it should be sourced internally, check the destination type on the requisition preferences. If it is not 'Expense', then what you are seeing is expected behavior

    3. If you are noticing that the system is sourcing the item only from an agreement even though all the setup indicates that it should be sourced internally, and the issue is not 2. above, then check if the master item is available in the Deliver-to Organization (This would either be the deliver-to organization of the Default Deliver-to Location on your Requisition Preferences page or if that Deliver-to Location was a global one, then the default Deliver-to Org from the Configure Requisitioning BU Preferences setup). If the item is not available in that organization, then the internal sourcing process cannot work.

    4. If you have setup the organization sourcing rules correctly but the transfer price setup is not correct or incomplete, then the system will not allow you to add the item to the cart. It will display an error suggesting transfer price related errors. You need to fix that before you can proceed

    5. The user should also have access to at least one catalog where all master items are enabled for access

    6. Master Org and Child Org Setup: If the item is set up to be Internally Transferable in the Master Org but not in the child org where the transactions are occurring, the system will not source the item to a Transfer Order. As these are item attribute setup configurations specific to an org (master or child), ensure that the attributes are correctly set in the org in which you seek to transact (if that is the child org, then the item should be internally transferable even in that org).

    Please review the attachment for some relevant screenshots.

     

     

    Best Comment

    Ashok

    Hi Srikanth

    In your scenario, the Destination Type must have been 'Expense'.

    Here's how it works:

    1. Within the same inventory organization, if you are transferring material from a subinventory to Expense (as in consume it), that goes through any normal transfer flow process by creating a transfer order. This is existing behavior as well. With the BPA scenario, it works the same way.

    2. An intra-organization transfer that we are referring to is a scenario where the Destination Type = Inventory and the material is transferred WITHIN the same inventory org between two subinventories. This is not supported.

    Comment

     

    • Ramesh Radhakrishnan

      Thanks for the note!!

    • Srikanth

      Thanks a lot for this feature! We have this exact requirement.

    • Ashok

      Very good to hear. Thanks for the feedback.

    • Ramesh Bomma

      Interested to know if anyone has used this feature? share your experience

      Thanks,
      Ramesh

    • Srikanth

      Hi Ashok,
      Kindly confirm if this feature works for "intra-organization" transfer as well?

      Within the same inventory organization, requisition leads to a transfer order, even though the item is in a BPA.

      The transfer order is then processed by store and the user receives the item.

      Pls let me know.

      Thanks,
      Srikanth.

    • Ashok

      Hi Srikanth

      In your scenario, the Destination Type must have been 'Expense'.

      Here's how it works:

      1. Within the same inventory organization, if you are transferring material from a subinventory to Expense (as in consume it), that goes through any normal transfer flow process by creating a transfer order. This is existing behavior as well. With the BPA scenario, it works the same way.

      2. An intra-organization transfer that we are referring to is a scenario where the Destination Type = Inventory and the material is transferred WITHIN the same inventory org between two subinventories. This is not supported.

    • Srikanth

      Thanks Ashok. Two clarifications about this new 18C feature.

       

      1. In our scenario, destination type = expense 

      2. Requisition is created from an expense department to "consume" inventory from the storeroom (Inventory).

       

      Considering this, believe requisition will lead to transfer order. Kindly confirm on this.

    • Ashok

      Correct. This will. This is the scenario I explained in Point 1. of my response. So yes, that is as designed.