3201 PR.01 Purchase Requisition Process

Revision Date: 
July 21, 2017

* This procedure has been updated to accommodate Workday Financials business processes and terminology.  Please note the effective revision date.

  • Please refer to the table in section 5B for guidance in the selection of the appropriate procurement requisition type.

Contents

1.     Overview

2.     Accountable Official

3.     Roles and Responsibilities

4.     Requisition Process Map

5.     Requisition Process

6.     Record Retention

This procedure outlines the process for obtaining goods and services at Yale University.

University purchasing practices must be conducted in a manner above reproach and, except as authorized by statute or regulation, with complete impartiality or preferential treatment.  See Policy 3201 General Purchasing and Policy 3210 Professional Services and Consulting Agreements for more information on roles, responsibilities, and authorities.

Purchase orders should not be created after goods or services have been received in full.  Purchase orders carry Yale’s terms and conditions that are not valid unless accepted by the supplier “prior” to providing goods or performing services.  If all goods or services have not been received in full and additional goods or services remain to be received for a specific transaction, it is appropriate to create a purchase order to cover the remaining goods or services.  It is the responsibility of the lead administrator to remind transaction requesters of their responsibility to create a purchase order before goods or services are delivered.

The Chief Procurement Officer has responsibility for the systems, processes, effectiveness, and efficiency of purchasing activities at the University.

Approver
Approves the purchase of goods or services.  The approver acknowledges that the purchase of goods or services are in accordance with University policies and procedures and are charged to the appropriate account.  The approver also verifies, through inquiries or direct knowledge, that the goods were received or the services were performed and prepares a Receipt of Goods Acknowledgement via the “AP Worklist.”

Buyer
Performs supplier analyses, obtains bids and quotes, and approves purchase orders based on internal approval limits.

Lead Administrator or his/her designee
Requests, approves, and delegates purchasing transactions on behalf of his/her department for the dollar limits defined in the Controller’s Office Fact Sheet.

Requester
Starts the process of requesting goods or services.  Identifies and documents the need for goods or services and determines that the costs are reasonable and allowable.

Initiator
Creates the transactions or places orders for goods and services based on direction from the Requester.

Purchasing Services Director
Oversees purchasing operations, including approving purchase orders and requisitions requiring prepayment.

Purchasing Services Office
Provides purchasing expertise and support to the Yale community, negotiates strategic and other contracts on behalf of the University, reviews required documentation, and issues authorized purchasing orders.

Yale’s Expense Management Solution
Includes the processing, creation and submission of expense reports for the following expenditures: travel expenses, reimbursements for materials or supplies purchased with or without a PCard, out-of-pocket reimbursements, or requests for cash advances.

Yale’s E-Procurement Solution
The Workday Create Requisition function replaces SciQuest as Yale’s e-procurement solution as of July 1, 2017.  SciQuest catalogs and contract pricing are available via the Connect to Supplier Website option.

Please view the Workday Create Requisition business process in more detail on the [email protected] program resource page for Workday Financials Business Process Maps.

Figure 1:  Purchasing Requisition Process

5. Requisition Process

Note: Sections A through E below explain steps A through E, as shown above in the requisition process map.

A.  Pre-order Requisition Preparation

Once a Requester identifies a need for goods or services, the requester is responsible for documenting the business need, and for determining that the costs are reasonable and allowable for the intended funding source.

1.  Identify and Document the Business Need

  • Documentation of the business need for a purchase is an important part of the purchasing transaction record and must be attached to the purchase requisition for purchases over the competitive bidding threshold.  The documentation supports effective financial management and is required during bidding and when requesting quotes.

Note: Please refer to Yale Sustainability web site for the latest guidance on the University’s efforts to monitor and reduce the University’s environmental impact.  Please review this site for products with reduced environmental impacts, before making purchasing decisions and supplier selections.

2.  Confirm that the Purchase is Allowable

The initiator must determine whether any of these constraints apply before moving forward
with a purchase.

  • Restricted Goods & Services
    • The initiator should consult Policy 3210 Professional Services and Consulting Agreements,  Policy 3220 Purchase of Restricted Items, and Policy 4209 Equipment, as appropriate.
  • Sponsored Awards or Restricted Gift Funds
    • The initiator must confirm that the purchase will comply with the terms of the sponsor or the terms of the fund’s indenture per Procedure 2200 PR.01 Gifts Processing and Stewardship.

3.  Estimate the Purchase Cost

  • The initiator is responsible for estimating the cost of the purchase.  If the estimated cost is above the University’s competitive bidding threshold, he/she must follow Procedure 3201 PR.02 Guide to Competitive Bidding.  In this case, bidding or a sole sources justification is required for the purchase.  
  • If the estimated cost is below the University’s competitive bidding threshold, proceed to Section 5B for information on identifying an appropriate supplier and purchasing method.

4.  Gather the Necessary Information

The initiator must provide some or all the following information, depending upon the type of requisition type selected:

  • Quantity and description, or detailed specifications, for the item or service to be purchased (including the catalog number, if applicable).
  • If the Yale University Buying Guide lists a suitable supplier, the department should follow the recommended purchasing method identified in the University Buying Guide.  Purchases of chemicals, computers, computer supplies, lab equipment, lab supplies, and office supplies of any dollar amount, must be made by submitting a requisition using Yale’s e-procurement solution.

    If the supplier is not listed in Yale’s e-procurement solution use the Workday Create Supplier Request to add the supplier.

  • Ship-to and Deliver-to location of the product or service.
  • Charging Instructions to be used.
  • Form 3205 FR.03 Sole Source Explanation or bidding documentation (three quotes from suppliers) if the purchase cost exceeds the competitive bidding threshold.
  • Yale Tax Exempt Certificate (Cert119), if required by the supplier.  The initiator must contact the University Tax Office for this form.

Note: The initiator, formerly known as the preparer, can edit and resubmit a requisition prior to the first approval.  During the approval process the $1k approvers can send the request back to initiator with instructions for clarification, or the approvers can edit and update themselves.  The $10k and unlimited approvers cannot edit; they can only send back to the initiator.

B.  Select the Requisition Type

Important: Shipping and Delivery Address Behavior Notes

Before creating the requisition, please note the following

  • Requester: For a new Requisition, the Requester’s name defaults to the Ship To Contact field and the Requester’s Work Space defaults to the Deliver To location field on each of the lines of the Requisition.
     

Important Note: The Requester selected on the first screen of the Create Requisition drives the values in the Ship To Contact field and the Deliver To location fields on the lines of the Requisition. If the Requisition items need to be delivered to someone other than the Requester, the Requisitioner must change the Ship To Contact field and the Deliver To location field on the lines of the Requisition. 

  • Ship To Address: For a new Requisition, the Ship To Address on the Requisition (header and lines) is derived from the Requester’s Human Resource job record. 
     

Important Note:  If needed, during checkout you can change the Default Ship To Address, which will change the Ship To Address on each of the Requisition lines.

If the Work Space location is not designated as a Ship To location in Yale’s location hierarchy, the system will default the Ship To Address on the Requisition transaction to Central Receiving.

  • Request Date: This will auto-populate with the date you create your requisition.  However, as of the current release the Workday solution does NOT communicate this information to the supplier. Do not rely on this field to request specific shipping or receiving dates.

Creating the Requisition

The initiator uses Workday’s Create Requisition to begin this process and should refer to the matrix below to select the appropriate requisition type based upon business need.  For situations where a department wants to review the invoice prior to payment, the initiator should choose Requisition Type and then select Requires Invoice Review.  Invoices will be moved to the department for review prior to payment.

Figure 2. Yale Procurement Requisition Type Selection

Use the table below to determine the business need and the appropriate requisition type.

Business Needs

1.  Common Goods Purchase: SciQuest Catalog Purchase Order

  • Click Requisition Type and select Standard Goods and Services.
  • Press Ok to proceed to the next screen.
  • Select Connect to Supplier Website option to access SciQuest catalog and punch-out.
  • Use the Connect option to proceed to SciQuest.
  • Select items to be purchased from the hosted or punch-out catalogs. 
  • When shopping is complete, click View Cart.
  • Click Checkout.
  • Review and complete the order, edit as necessary and once correct, click Return Cart to Workday.

Note: For further help with this process, please consult these Workday Quick Guides:

2.  Common Goods Purchase:  Non-Catalog Order for Good and Services

  • Click the Requisition Type and then select Standard Goods and Services.
  • If requisitioning goods:
  • Select the Request Non-Catalog Items option.
  • Under the Non-Catalog Request Type select Request Goods.
  • In Item Description, include a description of the type of goods you are purchasing.
  • If requisitioning services:
  • Select the Request Non-Catalog Item option.
  • Under the Non-Catalog Request Type, select Request Service.
  • In Description, be sure to reference the quote number and description of the services.
  • Enter the Start and End Date for this service.
  • To complete the order for goods or services:
  • For Supplier, enter the supplier’s name.

Note: If you need assistance identifying a supplier, list this information in the Memo field and select Purchasing Services as the Supplier.

  • Use Memo to include specific request details to Purchasing Services
  • Click Add to Cart.
  • When shopping is complete select Checkout.

IMPORTANT: Please review the  Shipping and Delivery Address Behavior notes at the beginning of section B, before submitting your order.  The Managing Your Delivery Information guide provides additional details about the behavior of these fields.

Note: If there are documents to send to Purchasing Services (e.g. sole source, competitive bidding, insurance certificates etc.), upload them during the checkout process.

For further help with this process, please consult these Workday Quick Guides:

3.  Capital Equipment (Catalog Items)

Used when your purchase will meet the definitions of the moveable equipment inventory (MEI) level, see Policy 4209 Equipment.      

  • Click the Requisition Type and then select Capital Equipment.
  • Select Connect to Supplier Website option to access SciQuest catalog and punch-out.
  • Use the Connect option to proceed to SciQuest.
  • Go to the website of the supplier you want and select desired items. 
  • Select Checkout, when shopping is complete.

IMPORTANT: Please review the  Shipping and Delivery Address Behavior notes at the beginning of section B, before submitting your order.  The Managing Your Delivery Information guide provides additional details about the behavior of these fields.

  • Review the order, edit as necessary and once correct, select Place Order.

Note: For further help with this process, please consult these Workday Quick Guides:

4.  Capital Equipment (Non-Catalog Items)

Used when your purchase will meet the definitions of moveable equipment inventory level, see Policy 4209 Equipment.

  • Click the Requisition Type and then select Capital Equipment.
  • Select the Request Non-Catalog Item option.
  • Under Non-Catalog Request Type, select Request Goods.
  • For Item Description, include a description of the item, part number, or other identification.
  • For Supplier, enter the supplier’s name.

Note: If you need assistance identifying a supplier, list this information in the Memo field and select Purchasing Services as the Supplier.

  • Use Memo to send specific requests to Purchasing Services.
  • Click Add to Cart.
  • When shopping is complete select Checkout.

IMPORTANT: Please review the  Shipping and Delivery Address Behavior notes at the beginning of section B, before submitting your order.  The Managing Your Delivery Information guide provides additional details about the behavior of these fields.

Note: For further help with this process, please consult these Workday Quick Guides:

5.  Add Money or Change Charging Instructions on a Purchase Order (Create Change Order)

Change Orders are used to add money to a Standing Order or a Professional Services and Consulting agreement (PSCA), or to modify charging instructions on a purchase order (PO), often on a Standing Order.

Note: If the PO number is unknown, enter other search criteria such as: Organization, Supplier, Document Date, or Purchase Order Status = Issued.

  • To retrieve the PO that requires modification, enter Find Purchase Order Lines for Organizations
  • Specify the Organization and enter the Purchase Order number. Click OK.
  • Select the Purchase Order and then Create Change Order.
  • Click the Goods or Services Lines tab and review details and charging instructions. Make the required changes.
  • Review changes and enter details about the changes in the space provided below the Goods or Services Lines.

Note: If the Change Order is greater than $10K, attach related Bid documentations or a Sole Source form.

  • Click Submit. The Change Order is automatically routed to the Cost Center P2P 1K Approver for approval.

Note: For further help with this process, please consult this Workday Quick Guide:

  • Create Change Order

Additional guidance is available from the [email protected] Support webpage and the Finance Support Center (FSC), (203) 432-5394.

6.   Close a Purchase Order (PO)

A Purchase Order (PO) can be closed when the order has been fulfilled and there is a remaining balance or commitment that should be eliminated. The PO is fulfilled when the items ordered have been shipped and the invoice has been paid.

Follow these steps to close an entire PO or a specific line item. Important: Ensure any valid invoices have been paid prior to requesting that a PO be closed. Contact the Finance Support Center (FSC) at (203) 432-5394 if assistance is needed.

  • Click the Requisition Type and then select Purchasing Assistance Required.
  • Select the Non-Catalog Request Type.
  • Under Non-Catalog Request Type, select Request Goods.
  • In the Description field, clearly indicate the action required: Close PO. Include the PO number(s) that need to be closed and the supplier’s name.
  • For Supplier, enter Purchasing Services.
  • For Quantity, enter 1
  • For Unit Cost Center, enter 1
  • For Unit of Measure, enter each
  • Click Add to Cart.
  • When shopping is complete select Checkout.
  • If there are multiple PO’s, attach an Excel sheet to the requisition listing the POs to close, during the Checkout process. 

Note: For further help with this process, please consult the [email protected] Support webpage and the Finance Support Center (FSC), (203) 432-5394.

7.  Cancel a Purchase Order

In an error (e.g., wrong item or incorrect amount) has been made, contact the supplier directly by phone to alert the supplier that the PO has been cancelled.  It is the department’s responsibility to notify the supplier when a PO needs to be cancelled.

  • Click the Requisition Type and then select Purchasing Assistance Required.
  • Select the Non-Catalog Request Type.
  • Under Non-Catalog Request Type, select Request Goods.
  • In the Description field, clearly indicate the action required: Cancel PO. Include the PO number(s) that need to be cancelled and the supplier’s name.
  • For Supplier, enter Purchasing Services.
  • For Quantity, enter 1
  • For Unit Cost Center, enter 1
  • For Unit of Measure, enter each
  • Click Add to Cart.
  • When shopping is complete select Checkout.
  • If there are multiple PO’s, attach an Excel sheet listing the POs to cancel, to the requisition during the Checkout process. 

Note: For further help with this process, please consult the [email protected] Support webpage and the Finance Support Center (FSC), (203) 432-5394.

8.   Contract, Agreements and Other Document for Review and Signing by Purchasing Services

First, click Requisition Type, select Purchasing Assistance Required, and then choose Non-Catalog Request.

  • If requesting assistance for goods:
  • Under Non-Catalog Request Type, select Request Goods
  • In Item Description, include a description of the type of goods you are purchasing
  • Enter Quantity, Unit Cost and Unit of Measure
  • If requesting assistance for services:
  • Under Non-Catalog Request Type, select Request Services.
  • In Description, be sure to reference the quote number and description of the services.
  • Enter the Start and End Date for this service.
  • Enter Extended Amount, which should be the total value of the contract or order.
  • To complete request for assistance for goods or services:
  • For Supplier, enter the supplier’s name. If supplier is not listed in Workday, use the Workday Create Supplier Request to add the supplier.

Note: If you need assistance identifying a supplier, list this information in the Memo field and select Purchasing Services as the Supplier.

  • Use Memo to send specific requests to Purchasing Services
  • Click Add to Cart. When shopping is complete select Checkout.

IMPORTANT: Please review the  Shipping and Delivery Address Behavior notes at the beginning of section B, before submitting your order.  The Managing Your Delivery Information guide provides additional details about the behavior of these fields.

Note: Be sure to upload and attach the contract along with any additional documents to send to Purchasing Services (sole source, competitive bidding, insurance certificates etc.) during the checkout process.

Process for Submitting Contracts

For contracts that will not require the creation of a Purchase Order (Non-PO contract)
If payment will be made using a PCard or Supplier Invoice Request (check request), please follow these steps:

  • Choose Create a Requisition, then select Purchasing Assistance Required
  • Select Request Non-Catalog Items and enter Yale Purchasing Services as the supplier
  • In your cart, add the contract to the Attachments section and submit the requisition 

For contracts that require the creation of a Purchase Order (PO contract)

If the Supplier will be submitting an invoice for payment, please follow these steps:

  • Choose Create a Requisition, select Purchasing Assistance Required
  • Select Request Non-Catalog Items and enter the Supplier name that is listed on the contract
  • If the supplier is not listed, choose Create Supplier Request
  • In your cart, add the contract to the Attachments section and submit the requisition 

Note: Lodging contracts for local hotels (Courtyard by Marriott at Yale, Omni Hotels New Haven, The Study at Yale and the New Haven Hotel) should be emailed to purchasing.contracts@yale.edu. These contracts will be forwarded to Yale Conferences & Events for review and signature.  

Note: For further help with this process, please consult the [email protected] Support webpage, the Finance Support Center (FSC), (203) 432-5394, or these Workday Quick Guides:

9.   Standing Purchase Order

If a standing purchase order has differing charging instructions from one invoice to another, click Requisition Type and select the Standard Requisition for Goods and Services (Requires Invoice Review).

Purchasing assistance may also be required; in this case, click Requisition Type and select Purchasing Assistance Required.

  • Click the Requisition Type and then select Purchasing Assistance Required.
  • Select Request Service for the Non-Catalog Request Type.
  • In Description, enter a detailed description of the products and/or recurring services (e.g. packaged gases, temporary services).
  • For Supplier, enter the supplier’s name. If supplier is not listed in Workday, use Workday Create Supplier Request to add the supplier.
  • Enter the Start and End Date for this service.
  • For the Extended Amount, enter the total value of the order. For example, a $1,000 order should be entered with an Extended Amount of 1000.
  • Use Memo to send specific request details to Purchasing Services.
  • Click Add to Cart.
  • When shopping is complete select Checkout.

IMPORTANT: Please review the  Shipping and Delivery Address Behavior notes at the beginning of section B, before submitting your order.  The Managing Your Delivery Information guide provides additional details about the behavior of these fields.

If you have documents to send to the supplier or Purchasing Services, upload them during the Checkout process.

Note: For further help with this process, please consult these Workday Quick Guides:

10.  Purchasing Assistance Request (e.g. bidding, sourcing)

  • Click Requisition Type and select Purchasing Assistance Required (e.g. sourcing, contract review).
  • Select the Non-Catalog Request Type.
  • Under Non-Catalog Request Type, select Request Goods.
  • In the Description, describe what type of sourcing assistance is needed and the department contact for sourcing request.
  • For Supplier, enter Purchasing Services.
  • For Quantity, enter 1.
  • For Unit Cost Center, enter 1.
  • For Unit of Measure, enter each.
  • Use Memo to note any specific request details to Purchasing Services.
  • Click Add to Cart.
  • When shopping is complete select Checkout.

IMPORTANT: Please review the  Shipping and Delivery Address Behavior notes at the beginning of section B, before submitting your order.  The Managing Your Delivery Information guide provides additional details about the behavior of these fields.

If you have documents to send to Purchasing Services, upload them during the Checkout process.

Note: For further help with this process, please consult these Workday Quick Guides:

C.  Obtain Office of Sponsored Projects (OSP) Approvals

The department is responsible for obtaining approval from the Office of Sponsored Projects (OSP) when any of the following criteria are met:

  • The Professional Services Consulting Agreement (PSCA) exceeds $10,000 (including any and all amendments).
  • The Consultant is identified as being responsible for the design, conduct or reporting of the research (regardless of the dollar threshold).
  • The scope of work involves human or animal subject research (regardless of the dollar threshold).

D.  Obtain Central Approvals

Workday will route the requisition to Purchasing Services and if there are other approvals needed (i.e. Security Design Review, Legal Review, Risk Management), the buyer will ensure they are obtained. 

Note: The initiator, formerly known as the preparer, can edit and resubmit a requisition prior to the first approval.  During the approval process the $1k approvers can send the request back to initiator with instructions for clarification, or the approvers can edit and update themselves. The $10k and unlimited approvers cannot edit; they can only send back to the initiator.    

E.  Purchase Order (PO) Transmission to Supplier

  • Once a PO is approved, a copy of the PO will be automatically sent to the supplier electronically.
  • The approved PO will create a commitment against the accounts charged.
  • A copy of the PO will be available in Workday.

Please refer to Procedure 1101 PR.02 Financial Transaction Review and Budget Monitoring, Policy 1101 Guiding Principles for Business and Financial Administration, Policy 1105 Retention of University Financial Records, and Record Retention Requirements, published by the General Counsel’s Office, to determine how long to store various types of financial and administrative records.