Materials Management Process - The Purchase Requisition

Materials Management
Process -The Purchase

Requisition
Materials Management Process-The Purchase Requisition

What This Course Is About
This course demonstrates the use of Purchase Requisitions in the Purchasing
process.
Purchasing is a component of Materials Management (MM). The Materials
Management (MM) module is fully integrated with the other modules of the
SAP System and supports all the phases of materials management: materials
planning and control, purchasing, goods receiving, inventory management,
and invoice verification.
The SAP Purchasing component (MM-PUR) is responsible for the external
procurement of materials and services.
A Purchase Requisition is a request or instruction to Purchasing to procure a
quantity of a material or service so that it is available at a certain point in time.
The purchase requisition is created when a need for a particular good or
service is identified.
Who Should Attend This Course
End users with the Agency Procurement Technician or the Agency

Procurement Management role should attend this course.
Agency/State Procurement Specialists (users that create purchase

orders) will find this course beneficial if they wish to learn the first step
(purchase requisitions) of the procurement process.
What You Should Know Before Coming to Class

Before coming to class, you should know AASIS Basic Navigation or be an
experienced user of AASIS. In addition, you should be familiar with basic
accounting concepts.
What You Will Learn from This Course
This course provides a basic overview of the business processes related to
the creation and processing of purchase requisitions using the materials
management module in AASIS.
You will learn to correctly create purchase requisitions in AASIS for goods
and services requested by your agency.
You will learn about the accounting and budgeting processes for purchase
requisitions.
You will learn about the reporting tools available in AASIS and how to use
them to locate data associated with purchase requisitions.
How This Course Is Organized
The Materials Management Process -The Purchase Requisition manual
provides the step-by-step processes in creating and approving purchase
requisitions up to the point of purchase order creation.
Legend - The following icons are used often. We will use the bracketed
descriptions throughout the course. When you see the bracketed description
either click the icon or press the keystroke combination.
<Enter> or
- Press the Enter key on the keyboard or click the Green
check icon. (No keystroke function.)
<SaveCtrl+S>
- Click the Save icon or press Ctrl+S.
<Other RequisitionShift+F5>
press Shift+F5.
<ExecuteF8>
<BackF3>
- Click the Other Requisition icon or
-Click the Execute icon or press F8.
-Click the Back icon or press F3.
<Display next itemF8>

F8.
<Display previous itemF7>
press F7.
-Click the Display next item icon or press
-Click the Display previous item icon or
TABLE OF CONTENTS:
MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ......................... 1
CHAPTER 1 .......................................................................................................................................... 6
OVERVIEW .......................................................................................................................................... 6
MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ......................... 6
VENDOR INVOICE CLEAN-UP........................................................................................................ 6
HOW DOES AASIS OPERATE? ............................................................................................................ 7
HOW IS AASIS ORGANIZED? .............................................................................................................. 7
WHAT IS A BUSINESS PROCESS? ......................................................................................................... 8
WHAT IS THE PROCUREMENT CYCLE? ................................................................................................. 8
CHAPTER 2 ........................................................................................................................................ 10
MASTER DATA, GLOBAL SETTINGS, INTEGRATION AND INTERNAL CONTROLS .... 10
MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ....................... 10
VENDOR INVOICE CLEAN-UP...................................................................................................... 10
WHAT IS MASTER DATA? ................................................................................................................. 11
WHAT ARE GLOBAL SETTINGS? ........................................................................................................ 15
WHAT IS INTEGRATION? ................................................................................................................... 24
WHAT ARE INTERNAL CONTROLS? ................................................................................................... 24
INTERNAL CONTROLS ........................................................................................................................ 24
SECURITY ROLES............................................................................................................................... 24
SEGREGATION OF DUTIES .................................................................................................................. 25
CHAPTER 3 ........................................................................................................................................ 26
ACCOUNTING AND BUDGETING LOGISTIC TRANSACTIONS ........................................... 26
ACCOUNTING FOR LOGISTIC TRANSACTIONS .................................................................................... 27
WHAT HAPPENS WHEN GOODS ARE PURCHASED? ........................................................................... 27
WHAT HAPPENS WHEN GOODS ARE RECEIVED? .............................................................................. 27
WHAT HAPPENS WHEN THE INVOICE IS ENTERED? ........................................................................... 28
BUDGETING FOR LOGISTIC TRANSACTIONS ....................................................................................... 29
WHAT HAPPENS WHEN THE PURCHASE REQUISITION IS ENTERED? .................................................. 29
WHAT IS THE 3-WAY MATCH? .......................................................................................................... 30
CHAPTER 4 ........................................................................................................................................ 32
THE VENDOR MASTER AND MATERIAL MASTER RECORDS ........................................... 32
WHAT ARE VENDOR MASTER RECORDS? ......................................................................................... 33
TO DISPLAY THE VENDOR MASTER RECORD, USE TRANSACTION XK03. ............................................ 35
WHAT ARE MATERIAL MASTER RECORDS? ...................................................................................... 42
TO DISPLAY THE MATERIAL MASTER RECORD, USE TRANSACTION MM03. ........................................ 43
CHAPTER 5 ........................................................................................................................................ 51
TIMESAVING TIPS ........................................................................................................................... 51

HOW TO SET THE PO PRICE FIELD ON THE VALUATION TAB. .......................................................... 52
SET YOUR DEFAULT VALUES ............................................................................................................ 54
THE COPY ITEM FEATURE ................................................................................................................. 59
THE LAYOUT SETTINGS FEATURE .................................................................................................. 61
CHAPTER 6 ........................................................................................................................................ 66
CREATING A PURCHASE REQUISITION ................................................................................... 66
TRANSACTION ME51N ..................................................................................................................... 67
HOW DO I ATTACH A DOCUMENT TO A PURCHASE REQUISITION? .................................................. 82
HOW DO I RETRIEVE THE ATTACHED DOCUMENT? .......................................................................... 84
CHAPTER 7 ........................................................................................................................................ 87
VIEWING THE PURCHASE REQUISITION ................................................................................ 87
DISPLAY A PURCHASE REQUISITION TRANSACTION ME53N.......................................................... 88
CHAPTER 11 VIEWING THE DOCUMENTS ..............................................................................102
HOW DO I VIEW THE FM DOCUMENT? ............................................................................................104
HOW DO I VIEW THE CONTROLLING DOCUMENT? ...........................................................................105
CHAPTER 8 .......................................................................................................................................107
SELECTING APPROVERS .............................................................................................................107
MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ......................107
VENDOR INVOICE CLEAN-UP.....................................................................................................107
APPROVAL/RELEASE PROCESS .........................................................................................................108
WHAT IS WORKFLOW? .....................................................................................................................108
HOW DO I CHOOSE APPROVERS? .....................................................................................................108
CHAPTER 9 .......................................................................................................................................113
DELETING AND CLOSING PURCHASE REQUISITIONS .......................................................113
MATERIALS MANAGEMENT PROCESS -THE PURCHASE REQUISITION ......................113
VENDOR INVOICE CLEAN-UP.....................................................................................................113
HOW DO PURCHASE REQUISITIONS REMAIN OPEN AND CONTINUE TO COMMIT BUDGET? ..............114
ACTUAL BUDGET REPORT -TRANSACTION Y_DEV_80000046 .......................................................114
LIST DISPLAY OF PURCHASE REQUISITIONS TRANSACTION ME5A ...............................................122
REPORT FOR OPEN PURCHASE REQUISITIONS TRANSACTION ZOPENREQ ..................................128
CHANGE PURCHASE REQUISITION TRANSACTION ME52N ............................................................132
Requisition
Chapter 1
Overview

Chapter 1 - Overview
How Does AASIS Operate?
The Arkansas Administrative Statewide Information System (AASIS) operates
using SAP software that has been customized to meet the business needs of the
State of Arkansas. AASIS includes business processes designed for day-to-day
operations and its design enables the State to produce accurate financial
reporting information.
How Is AASIS Organized?
AASIS is organized into modules and sub-modules. A Module is a group of
related components that serve complementary functions. A Sub-module is an
individual component containing related transactions. The AASIS structure looks
something like this:
Financials (FI) Module
Sub-modules
Accounts Payable (AP)
Accounts Receivable (AR)
Asset Management (AM)
Cash Management (CM)
Controlling (CO)
Funds Management (FM)
General Ledger (GL)
Projects Systems (PS)
Special Purpose Ledger (SPL)
Materials Management (MM) Module

Sub-modules
Inventory (INV)
Logistics Invoice Verification (LIV)
Purchasing (PUR)

Human Capital Management (HCM) Module
Sub-modules
Benefits
ESS
Organizational Management (OM)
Payroll (PAY)
Personnel Administration (PA)
Time
Training and Events (TE)
What Is A Business Process?

A business process is a series of defined procedural steps associated with a
specific business function. A complete business process might be contained
within a single sub-module, or it might cross sub-modules and modules.
Procurement is part of the Materials Management (MM) module. The purchase
requisition process is the first step in the Procurement cycle. This course
demonstrates the process for creating and troubleshooting the purchase
requisition.
What is the Procurement Cycle?
PR
PO
GR
IR
Payment
Purchase Requisition
The first step in the procurement cycle is determining a need for a good or
service. When a need has been identified, the person with the role of Agency
Procurement Technician will create a Purchase Requisition in AASIS. The
Department of Finance and Administration recommends using the purchase
requisition because it is the start of the procurement process in AASIS prior to
further processing.
Once the purchase requisition has been created, an end user with the
Agency/State Procurement Management role must approve it.
Documents Processed from the Purchase Requisition
Upon approval, the purchase requisition may be processed into a Request for
Quotation (RFQ) which is an invitation extended to a vendor by a purchasing
organization to submit a quotation (bid) for the supply of materials or
performance of services. The purchase requisition may also be processed
directly into a Purchase Order (PO) or Outline Agreement (OA).

Creating the Outline Agreement or Purchase Order
An Outline Agreement is a contract created between the state and a vendor for
the intent to purchase an estimated quantity of materials/services for a
predefined net price and an estimated target value over an extended period of
time. Outline agreements do not commit budgetary funds.
The Outline Agreement can be created by referencing a Request for Quotation
(RFQ) or a Purchase Requisition. Once created, the OA must go through the
approval process.
A Purchase Order (PO) identifies specific materials/services to be purchased as
well as the negotiated terms, conditions, and pricing. Once created, a PO
number is generated by the system. Budget commitments from the purchase
requisition are updated in accordance with prices on the Purchase Order.
The purchase order also goes through an approval (release) process. The
Agency/State Procurement Specialist will process all items approved by the
Agency/State Procurement Manager. The purchase order is then printed out and
sent to the vendor.
Marking Goods and Services for Receipt with Transaction MIGO
The next step in the procurement cycle is entering the Goods Receipt using the
MIGO transaction. The goods receipt is posted when you have received goods
and/or services that have been ordered using a purchase order. Once the goods
receipt is posted, a material number is created. The budget amount is not
affected by the GR and remains a commitment. The General Ledger accounts
are automatically updated by the value of the receipt. The General Ledger
accounts include assets, liabilities, fund balance, revenues, expenses and other
sources and uses. The goods receipt automatically updates the purchase order.
The purchase order history is recorded on the PO and the item is closed once
the entire quantity is received or the quantity received is within set tolerances.
Entering the Logistics Invoice Verification (MIRO)
The final step in the procurement cycle is the Logistics Invoice Verification using
the MIRO transaction. Logistics Invoices are linked to the Materials Management
module of AASIS and must be used when the invoice being paid was for items
received via a system generated purchase order. Though this is an MM process,
Accounts Payable personnel perform this transaction.
Payment
The posted invoice will remain open until it is paid via the payment run. The
Payment Program runs Sunday thru Thursday at 8:00 p.m., and the FMF0
program runs each night to change the budgeted commitment to an expense in
FM.
Requisition
Chapter 2
Master Data, Global
Settings, Integration and
Internal Controls
10

Chapter 2 Master Data, Global Settings, Integration and Internal Controls
In this chapter we explain about Master Data, Global Settings, Integration and
Internal Controls, which you will see mentioned throughout this course. You
need to understand what they are, how they impact the Materials Management
process, and how and why they affect the way you do your job. Master data is
central to integration in AASIS and is also part of system internal controls, so we
will begin with master data.
What Is Master Data?
Master data is information that remains the same over a long period of time, or
information that is needed often and in the same form. Master data is also used
for deriving additional information, which reduces data entry for end users and
facilitates integration and reporting within AASIS between the modules and submodules. Because of the derivations, you must understand the connections
between master data elements and how they are used in various transactions.
Master data consists of the master record, which answers questions such as
what it is, who is responsible for it, where its located, etc. Master records are
identified by a unique alpha, numeric or alpha-numeric code. Some pieces of
master data can be used by all end users, while others are more restricted. Each
piece of master data has a module or sub-module that owns the master record,
but most master data is used by multiple sub-modules in transactions. For
example, the CO sub-module owns a cost center because that is where the
master record is created and maintained, but cost centers are used by all FI submodules, most MM sub-modules, and even HCM sub-modules. Some of the
Master Data elements are:
Fund is a seven-character numeric or alpha-numeric code that represents one
level of an agencys fiscal and accounting responsibility, where cash and other
financial resources are recorded for the purpose of administering authorized
activities. The fund is master data.
In accounting terms, a fund is a self-balancing set of books. The debits and
credits must be equal, and AASIS allows extensive reporting of revenues,
expenses and cash on a Fund basis. In other terms, a fund is similar to a bank
account. Each fund has deposits or incoming transfers to increase the cash
balance, and payments or outgoing transfers to reduce the cash balance. Funds
can be used by agencies to keep track of different funding streams (sources of
revenue) or to separate cash used for multiple purposes. For example, some
agencies receive money from both the State and the Federal government. If they
prefer to keep the money separate, they might choose to have two funds one
for the state money and one for the federal money although this is not
necessary.
11

There are two types of funds in AASIS:
Treasury funds represent monies maintained in the State Treasury. For Treasury
funds, the seven-character fund code is alpha-numeric; the first three characters,
at least, are letters, and the remaining characters are numbers.
Cash funds represent monies maintained in commercial bank accounts.
Cash funds, all seven characters of the fund code are numbers.
For
Funds are owned by the FM sub-module and are part of the budget quad in
AASIS. Agency budgets are created to limit how much an agency can spend
based on legal authorizations. AASIS uses four pieces of master data to make
up the budget quad: fund, funds center, functional area and commitment item,
all owned by the FM sub-module.
Functional Area is a three- or four-character alpha code that represents the
high-level Comprehensive Annual Financial Report (CAFR) classifications.
Functional areas correspond to the general purpose of the agency (Health and
Human Services, Public Safety, Education, Constitutional Office, etc.). Each
agency has only one functional area. The functional area is master data.
Funds Center is a four-or-five-character alpha-numeric code that represents the
agencys appropriation, or the legal authority to spend certified income, according
to the agencys Appropriation Bill passed by the State Legislature in the most
recent regular session. The funds center is master data.
General Ledger Account is a 10 digit numeric code used to classify and
categorize financial activity within AASIS and represents the line item detail for all
financial transactions. The general ledger account is master data. General
Ledger accounts (GL accounts) are grouped by category in the AASIS statewide
Chart of Accounts. Department of Finance & Administration-Office of Accounting
(DFA-OA) adds General Ledger accounts to the Chart of Accounts when the
need arises. General ledger accounts are owned by the GL sub-module but
are used throughout the FI and MM modules. GL Accounts are generic to all
state agencies.
12

There are six broad categories of GL accounts, each of which serves a different
purpose in the financial statements, and each category has a different 10-digit
number range:
Account Category
Assets
Liabilities
Fund Balance
Revenues
Expenses
Other Sources and
Uses
Account
Type
Balance
Sheet
Balance
Sheet
Balance
Sheet
Number Range
1000000000 1999999999
2000000000 2999999999
3000000000 3999999999
4000000000 Profit & Loss 4999999999
5000000000 Profit & Loss 5999999999
6000000000 Profit & Loss 6999999999
NOTE: There is an account category called Assets, but we also have what we
call Fixed Assets in AASIS.
Assets is a category of GL accounts representing items that increase the
financial value or improve the financial position of the State. Examples include
cash balances, cash owed to the state, fixed assets (items of value, also referred
to as capital equipment), investments, etc.
Fixed asset accounts are used for recording and tracking individual pieces of
equipment, buildings, land, artwork, and other items purchased or constructed
by, or donated to, the state. Individual fixed assets are maintained in the Asset
Management sub-module, but their balances are summarized and reported in the
General Ledger in the 1990000000 1999999999 account range in the Assets
section.
In MM, you will mostly be working with Assets, Expenses and Liabilities.
Individual expense accounts are used to classify how your agency spends its
money. These accounts, combined with other pieces of master data, allow you
to produce reports detailing how much has been spent on cleaning supplies,
office supplies, uniforms, services, etc.
Liabilities represent obligations how much your agency owes, and a general
idea of what created the obligation. Examples include payroll liabilities, vendor
liabilities, bond payment liabilities, etc. One of three liability reconciliation
accounts will be assigned to each individual vendor master record.
13

A reconciliation account is used to summarize the balances in the individual
vendor accounts and report the totals in the General Ledger. There are currently
three vendor reconciliation accounts: 2110001000 Vendor Accounts Payable,
which is used for most vendors; 2110002000 Employee Accounts Payable,
which is used for employee vendors (used for travel reimbursements but not
payroll); 2110003000 Due to Other Funds, which is used for State Agency
vendors. The liability reconciliation account chosen determines what must be
done with the account balance when it comes time to produce the financial
statements.
Commitment Item is a seven-digit numeric code that represents the broad
categories of detailed line items created within all financial transactions. The GL
number will derive the commitment item. Commitment items create functional
groupings of expenditures and revenues, among other things, within the FM submodule. Commitment item categories include Maintenance & Operations,
Regular Salaries, Extra Help, Matching, Conference & Convention Fees,
Professional Services and Capital Outlay. Appropriation bills are specific to the
commitment item (character code) level. For example, an agency may be
authorized to spend no more than $1 million for Regular Salaries, $2 million for
M&O, $100,000 for Capital Equipment, etc.
Cost Element is the equivalent of the 10-digit GL account and represents the
line item details for all revenue and expense financial transactions, except the
cost element is owned by the CO sub-module and is only used there. Cost
elements only exist for GL accounts in the 4000000000 6999999999 range,
with the exception of some of the Fixed Asset accounts in the 1990000000
1999999999 range. The cost element number is the same as the GL account
number; for example, GL account 5050002000 is associated with cost element
5050002000.
Customer is a business partner to whom the state has provided goods or
services in return for payment and is identified by a unique Customer Account
number. Customer Master Records are categorized by account groups, and
each account group has a unique numeric range of nine digits, depending on the
type of customer. The account group is identified by the first or first three digits
of the account number.
The Special Purpose Ledger module (SPL) does not own any master data.
SPL is a ledger used for financial statement reporting at the fund level. Anything
that posts to the General Ledger automatically posts to the SPL, which means all
financial transactions. The difference is that SPL postings include a Fund and
Business Area on every line and force each document as a whole to balance,
debits and credits, by Fund and Business Area, whereas the General Ledger
documents do not.
14

What Are Global Settings?
Global settings are used like master data, except they are created through
configuration by ASC and are not owned by one particular module. Some
important examples of global settings for MM users are Company Code,
Purchasing Organization (Business Area) and Document Types.
Company Code is a three-character alpha code that represents the States
highest level legal reporting entity. The company code is a global setting.
The only Company Code used in AASIS is ARK.
Purchasing Organization (Business Area) is a four-digit numeric code
representing an organizational unit of the State. It is a global setting. In
AASIS, business area represents an agency or division of an agency; each
agency has a unique business area code in AASIS. Business area is used for
reporting purposes and enables users to produce financial statements by
agency. Some transactions require you to enter a business area, while others
derive the business area from the cost center. Business area is used by most FI
sub-modules, but not all.
MM does not use business area (it uses
Purchasing Organization instead), and the CO and FM sub-modules have only
limited uses for business area.
Document Type is a two-character alpha-numeric code that identifies the
purpose of the business transaction and is also used to control what you can do
within a transaction. For instance, document type RE is always a Vendor Invoice
(Logistics Invoice Verification).
Sometimes the transaction you choose will determine the document type used,
and sometimes you must choose the document type. Understanding the
document types is also very useful when executing or reading reports.
Document type is often a selection option on reports and can help you narrow the
selections and improve the speed of the report. The document types applicable
for the Materials Management process are:
15

Procurement
Document
Type
Usage
NB
Req. to PO
NV
Req. to OA
PB
Req. to Prof. Svc. PO
PV
Req. to Prof. Svc. OA
NC
Normal QC ( Quote Constitutional Bid)
NQ
Normal CB ( Competitive Quote Bid)
NR
OSP RFQ (OSP Request for Qualifications)
Prof. Svc. CB (Professional Service Quote Bid)

ABA Prof. Svc. RFQ (ABA Request for
Qualifications)
PC
OSP Prof. Svc. RFQ (OSP/PSC Request for
Qualifications)
PR
Goods Receipt
PB
Document
Type
WE
Description
Goods Receipt
Usage
Recognize the receipt of goods
ordered via the AASIS procurement
process
Logistics Invoice Verification
Document
Type
RE
Description
Vendor Invoice
Usage
Logistics Invoice
16

Cash Management
Document
Type
ZP
ZR
Description
Usage
Vendor Payment Document
Payment generated via

the automatic payment
run, either for a Treasury
fund or a Cash fund
Bank Clearing
The issued payment has

been received by the
vendor and submitted to
the Treasury or
Commercial Bank for
redemption
17

How Master Data and Global Settings are used in the Purchase Requisition
When entering a purchase requisition one important field is the account
assignment category field. What you enter into that field will indicate the
information needed on the Account Assignment tab.
K = cost center. This selection will require you to enter a cost center.
Cost Center is a six-digit numeric code that serves as a financial data collector
for areas of responsibility within an agency. The cost center is master data. An
agencys cost center structure usually reflects the organizational structure of the
agency; e.g. at least one unique cost center for each county office, and different
cost centers for central administration units. Cost centers are also used to derive
other information when used in a transaction. Within AASIS, cost centers enable
derivation of fund, funds center, business area and functional area in other
words, most of the budget quad. The G/L code is derived from the material
master record and may be changed. Cost centers are owned by the CO submodule.
18

F = Order. This selection will require you to enter a cost center and an internal
order number.
Internal Order is (up to) a nine-character alpha-numeric code used to collect the
financial data of an agency for reporting purposes. Internal orders are not used
to derive other information. Internal orders are owned by the CO sub-module.
19

P = Project. This selection will require you to enter a cost center and a WBS
element.
Project Definition An alpha-numeric code that is the high-level definition of a
construction project or grant award. Each project definition contains at least one
lower-level WBS element. Project definitions are owned by the PS sub-module,
but are more commonly associated with the CO sub-module because that is
where most of the reporting takes place.
WBS Element is an alpha-numeric code that is a component of Project Systems
within the CO sub-module. Each WBS element is part of the hierarchical
structure of a project definition and is used as a financial data collector to serve
the reporting needs of an agency. WBS elements are used in AASIS to record
activity against grants or construction projects. Some WBS elements are real
or non-statistical, which means the fund, funds center and functional area are
derived from the WBS element rather than the cost center; non-statistical WBS
elements are normally used with construction projects. WBS elements are
owned by the PS/CO sub-modules.
20

A =Asset. This selection will require you to enter an asset number.
Asset is a piece of equipment or other non-inventory item - purchased, donated,
constructed, or in the process of being constructed - in AASIS. The asset master
record includes the useful life of the asset, the cost center to be used for financial
information, the value of the asset, etc. The asset class chosen when the asset
is created determines which Fixed Asset reconciliation accounts are used in the
General Ledger. Each asset has a unique nine-digit number, determined by the
number range assigned to the asset class, which is used for tracking and
reporting purposes.
U = Unknown. U- Unknown: If the unknown account assignment is used the

account assignment tab does not appear. There is no budget committed. This
category is mostly used for Outline Agreements where the quantity is unknown.
Blank- (Leave blank): For plant purchase requisitions for re-stock orders. This
account assignment category should be used for the following plants only:
1000 Physical storage location used by the Department of Human Services.
1300 -- Physical storage location used by ASH - Benton
1350 Physical storage location used by Arkansas State Hospital.
21

Two more pieces of required master data needed on a purchase requisition are
the material number and the plant.
Material Master Record represents a specific material or service and is

assigned a unique number within AASIS. It includes a short material description
and its units of measure. All modules in AASIS that will access the material or
service for transactional and reporting purposes will use this number. The
material master records for non-stock items are only created for plant 9999.
The material master record also contains a material group number. This number
groups together goods and services by similar characteristics or attributes.
A material master represents a good or service which can be procured by
authorized plants through the purchasing sub-module in MM. Each material
master record includes a suggested GL account for use in purchase orders;
however the GL account can be changed when you create the PO but this should
not be done on a routine basis.
Plants represent an inventory warehouse location; most of the state uses plant
9999, although there are a couple of agencies that have their own plants. Plants
are further controlled by purchasing organizations and purchasing groups.
Purchasing groups are defined by the agency and can represent one or many
individuals, but must be created and maintained within AASIS by ASC staff.
Plant codes currently used for storage locations within the State are:
9999 Reference plant - standard location used within the system.
1000 (Stocked plant) physical storage location used by the Department of
Human Services.
1300 - (Stocked plant) physical storage location used by ASH (Benton)
1350 (Stocked plant) physical storage location used by the Arkansas State
Hospital.
8888 Used only by M & R.
22

The vendor is not a required field on the purchase requisition, but if entered on
the requisition the information will populate into the purchase order once the
requisition is referenced.
Vendor is an authorized entity from whom the state can purchase goods or
services and is identified by a unique Vendor Account number. The Vendor
Master Record contains such information as vendor name and address, tax
identification number, bank account information, and the reconciliation General
Ledger account used for financial reporting. Vendor Master Records are
categorized by account groups, and each account group has a unique numeric or
alpha-numeric range of two to nine characters, depending on the type of vendor.
23

What Is Integration?
Several of our business processes are possible because AASIS is integrated to
allow the transfer of information between the modules and sub-modules without
the need to enter the same data multiple times. Integration allows the recording
of expenses and payments in such a way that other sub-modules of AASIS can
use the information for their own reporting needs. This reporting is made easier
by the use of global settings and master data; like the global settings, some
master data is agency-specific, but most is not.
What Are Internal Controls?
Internal controls are a checks-and-balances system designed into the business
process to ensure system security, data integrity and accuracy, and the
protection of the assets of the State of Arkansas (fraud prevention). Auditors
review the internal controls in AASIS and in your agency to ensure that the
financial information posted by your agency, and thus by the State of Arkansas,
is reasonably accurate and not likely to lead to misstatement on the statewide
financial statements (CAFR). Internal controls are part of every business
process within AASIS, but your agency should also have internal control policies
and procedures in place for activity that takes place outside of AASIS (i.e. the
physical handling of cash).
Internal Controls
The primary goals of internal controls in AASIS are:
1) To ensure that no user can perform an entire business process without the
knowledge and participation of at least one other person.
2) To prevent users from using master data that does not pertain to their area of
responsibility. The MM process enforces internal controls through segregation of
duties and master data control via the use of security roles.
Security Roles
As an AASIS user, you have security roles assigned to your User ID. These
security roles determine which transactions you can and cannot access, thus
limiting what you can and cannot do once you get into AASIS. Security roles can
also be used to control access to such Global settings and master data as
Business Area, Vendor Master Record and Vendor Account.
24

Segregation of Duties
One person cannot complete the entire MM business process.
DFA-OSP creates and maintains the Vendor Master Record and the
Material Master Record
One Agency user creates the purchase requisition
A second Agency user approves the purchase requisition
Another user creates the purchase order
Another user approves the purchase order
Another user creates the goods receipt
Another user creates the MIRO
The Auditor of State produces and mails the payments
DFA processes the BAI file to clear the payments
Dividing the process between different agencies, and between different people
within an agency, means that one person cannot do the entire process without
any kind of review. Review is critical, not only for fraud prevention but for data
accuracy.
25
Requisition
Chapter 3
Accounting and
Budgeting Logistic
Transactions
26

Chapter 3 Accounting and Budgeting Logistics Transactions
Accounting for Logistic Transactions
What Happens When Goods Are Purchased?
The purchase requisition and purchase order do not cause AASIS to make
accounting entries in the General Ledger or Special Purpose Ledger. The
purchase requisition and purchase order do cause AASIS to record
commitments in the controlling module and the FM (budget) module. This is
because government rules require us to keep up with obligations or
encumbrances to our budgets, but modified and full accrual accounting rules do
not recognize a transaction until the goods are actually received.
What Happens When Goods Are Received?
The MIGO transaction is used to record a receipt of goods ordered through the
AASIS purchasing process. The goods receipts and invoice receipts are
recorded through a special account called the GR/IR account. (GR=Goods
Receipt; IR=Invoice Receipt) As soon as the end user saves the MIGO
transaction, AASIS records the following accounting transaction:
The expense or asset account is debited
The GR/IR liability account is credited
The amount of the debits and credits are the dollar value of the quantity of goods
received. The unit dollar value comes from the purchase order. The quantity
received comes from the goods receipt.
Example: Agency orders 10 boxes of pencils at $5.00 per box. All 10 boxes are
received. Office Supplies Expense is debited for $50.00 and GR/IR is credited
for $50.00.
General Ledger Entries
Office Supply Expense
_______________________
Debit
GR/IR
_______________________
Credit
50
50
27

What Happens When the Invoice Is Entered?
The MIRO transaction is used to record the invoice for goods ordered through
the AASIS purchasing process. As soon as the end user saves the MIRO
transaction, AASIS makes the following accounting entries:
The GR/IR account is debited
The vendor account is credited
The vendor account credit rolls up to the Vendor Accounts Payable
Reconciliation General Ledger Account, which aggregates all of the vendor
accounts.
The amount of the debit to the GR/IR account is the dollar value of the quantity of
goods invoiced. The amount of the credit to the vendor is the amount to be paid
to the vendor. Any differences between the amount to be paid to the vendor and
the debit to the GR/IR are debited or credited to the expense or asset account of
the item being invoiced.
Example: Agency enters invoice for the 10 boxes of pencils in the earlier
example. GR/IR is debited for $50.00 and the vendor account/Vendor Accounts
Payable is credited for $50.00.
General Ledger Entries
GR/IR
50
MIGO
50
Vendor AP
50
MIRO
28

Budgeting for Logistic Transactions
What Happens When the Purchase Requisition is entered?
A purchase requisition can be created with a U in the account assignment
field. An account assignment designates which cost objects will be used to
commit your budget for the amount of the purchase and where the expense is to
be charged. If the requisition is created with a U for unknown, your budget will
not be committed.
If a purchase requisition is created with an account assignment of K, you would
enter a cost center on the account assignment tab. That cost center would then
derive the fund, funds center, functional area and commitment item. The quantity
multiplied by the price stated on the requisition will be the amount committed
against the fund, funds center, functional area, commitment item combination.
NOTE: To view the Commitment/Actual Line Items by Document Number
screen, go to Environment>AC Commitment Documents. You will receive a popup box and double click on Funds Management Doc.
If you used U for the account assignment in the purchase requisition, an

alternate account assignment must be selected at the point of purchase order
creation.
When the purchase order is created with reference to the purchase requisition
(there is no change in price and/or quantity) you will see the commitment relieved
from the purchase requisition.
29

The commitment is transferred to the purchase order. In the example below, the
commitment amount also includes sales tax because tax code P1 was chosen
on the purchase order.
The commitment remains the same after the goods receipt (MIGO) transaction is
created.
When the invoice is received, an entry will be made in the logistic invoice
verification (MIRO) transaction. That will relieve the commitment in the purchase
order and commit budget at the invoice level. It will remain a commitment even
after the payment program runs. The commitment will become an expense once
the follow-up program (FMF0) runs.
What is the 3-Way Match?

We talked about the Procurement Cycle in Chapter one. It is important to always
complete the procurement cycle because every document in the procurement
process also creates additional postings within other modules. Completing the
procurement cycle also insures the proper function of the three way match.
In order to pay an invoice against a purchase order, two steps must already have
been completed in AASIS: The purchase order and a goods receipt. When the
invoice is entered, a process known as invoice verification or three-way match
takes place.
Within the three way match, quantity and price on the goods receipt must match
the amount on the invoice receipt.
Example 1: A correct Three-Way Match
Goods Receipt 10 items @ 100 each
Invoice Receipt 10 items @ 100 each
Example 2: An incorrect Three-Way Match
Goods Receipt - 9 items @ 100 each
30

Invoice Receipt- 10 items @ 100 each
NOTE: There are exceptions to the 3-Way match. Because of unplanned
shipping costs, rounding of sales tax, and other unexpected items, AASIS allows
an invoice to pay if it matches within 10% or $100, whichever is less. If the
invoice amount is entered for more than 10% more or $100 more than the
amount of the goods receipt, AASIS puts a system payment block on the invoice.
The system block should be reviewed by management and removed based upon
established agency internal controls.
31
Requisition
Chapter 4
The Vendor Master and
Material Master Records
32

Chapter 4 The Vendor Master and Material Master Records
Two important pieces of master data for the procurement process are the Vendor
Master and the Material Master.
What Are Vendor Master Records?
Vendor Master Records are created and maintained by the Department of
Finance & Administration Office of State Procurement (DFA-OSP). Agencies
only have access to display the vendor master records, and even then the
display access is restricted to some purchasing users and accounts payable
users, depending on the vendor group to which the vendor belongs. If you find
something on a vendor master record that needs to be changed, or if you want to
request a new vendor master record to be created, you must fill out a form and
send it to DFA-OSP.
A vendor master record holds identifying information about a specific business
entity or person from whom the State is authorized to purchase commodities or
services. The master record contains address and contact information, agency
specific information, and settings that affect integration points between MM and
other sub-modules. Each vendor master record is assigned a unique number,
which serves as the vendor account number in MM documents.
Keep in mind that the vendor master record does not contain any transactional
data; that is, it only shows who and where the vendor is, not how much business
the State has actually done with the vendor. Transactional information (when,
what and how much we bought from the vendor) is maintained elsewhere, but
the link between the Vendor Master Record and the transactional data is the
vendor account number.
Vendor groups are a means of organizing vendors according to type. Vendor
groups are also a means of restricting or permitting access by agency personnel
through their security roles.
33

Vendor
Group Description
ADDR
AGEN
EMPL
VEND
One-Time
Address Vendor
State Agency
Vendors
Employee
Vendors
Vendors
General
Number Range
Usage
W000000
W999999
A000000
A999999
C000000
C999999
Used for vendors to be

paid by warrant, ACH,
from a Treasury Fund or
Check from cash fund.
9999999
State Agencies. Each

state agency has at
least one vendor
number.
2999999
Every state employee

who is paid through
AASIS also has a
vendor number. These
vendors are used to
reimburse employees for
travel expenses, not for
Payroll.
9990000
2000000
The General Vendor

group is used for
commercial entities from
which the State
purchases goods or
services (Wal-Mart,
Office Depot, Entergy,
AT&T, architectural and
advertising agencies,
100000000 199999999 etc.).
The only vendor types used in MM are AGEN and VEND.

Before you create procurement documents, you must be certain that the vendor
account number you use is the correct one. There are several vendors, such as
Wal-Mart, Office Depot and Gateway, who have multiple vendor account
numbers. To avoid creating errors that must be corrected later, verify the vendor
information before starting the data entry.
34

To display the vendor master record, use transaction XK03.
35

1. Enter the vendor number, or use the match code icon
to search.
Enter company code ARK and the purchasing organization (business
area).
2. Click all of the checkboxes (except Withholding tax, which is not
functional) by clicking the Select all icon.
<Enter>
36

The first page displays the vendors or individuals name and address. Name 1
will be the corporate or individual name (the name to which the 1099 documents
are issued). Name 2 is the Doing Business As... name the name you will
most likely be familiar with. Contact information, if available, will be displayed at
the bottom of the page.
<Next screen>
37

As we stated earlier, the authorization Vend means that this vendor can be
used in procuring goods and services through the procurement process.
The jurisdiction code is used by the tax calculation software to determine the
amount of sales tax applicable based on the vendor location.
<Next screen>
The Alternative Payee screen is rarely used.

garnishment of vendor payments.
It may be used in case of
<Next screen>
38

The Accounting Information screen displays the reconciliation account (vendor
accounts payable). The Authorization designation indicates what type of vendor
it is (AP vendor, state agency, employee, etc.) This screen also displays the
withholding tax code.
<Next screen>
39

The Payment transactions accounting screen displays the payment terms set up
for the vendor and the payment methods that the vendor can accept.
<Next screen>
40

This screen is not used.
<Next screen>
The Purchasing data screen contains information specific to your purchasing

organization. (For example, your purchasing organization may have different
payment terms than the vendor lists for the state.)
<Next screen>
41

In some cases, purchase orders and invoices may go to different vendor
addresses. This information is contained on the Partner functions page and is
specific to each purchasing organization.
What Are Material Master Records?

As previously stated, the material master record represents a specific material or
service and is assigned a unique number in AASIS for a specific material or
service. It includes a short material description and its units of measure. This
number will be used by all modules in AASIS that will access the material or
service for transactional and reporting purposes. The material master records for
non-stock items are only created for plant 9999.
The material master record also contains a material group number. This number
A material master represents a good or service which can be procured by
authorized plants through the purchasing sub-module in MM. Each material
master record includes a suggested GL account for use in purchase orders, but
you can change the GL account when you create the PO.
Plants represent an inventory warehouse location. Most of the state uses plant
9999, although there are a couple of agencies that have their own plants. Plants
are further controlled by purchasing organizations and purchasing groups.
Purchasing groups are defined by the agency and can represent one or many
individuals, but must be created and maintained within AASIS by ASC staff.
42

To display the material master record, use transaction MM03.
43

Type in the material number that you wish to view or you can do a search using
the Search icon.
<Enter>
1. Highlight the tabs you wish to view. To view all the tabs click the Select
all icon.
2. Click the Organizational levels icon.
44

3. Enter the plant number to pull up the materials that you wish to view.
<Enter>
4. On the Basic data 1 tab you can view the base unit of measure for the
material selected. In the sample below; EA is the unit of measure.
5. The material group number is also displayed. Remember, this number
6. Continue to the Basic data 2 tab.
45

On the Basic data 2 tab the material number and description are displayed.
7. Continue to the Purchasing tab.
46

The material number and description are also displayed on the Purchasing tab.
You may also view the plant where the good or service is stored.
8. The Base Unit of Measure is displayed.
9. The Material group is displayed.
10. Tax ind. F. material indicates whether the good or service is taxable or
exempted from taxes. 1 means the item is taxable
11. Var. OUn. (Variable order unit). 1 allows Purchasing to order a material
in a unit that differs from the base unit defined for the material.
12. The Purchasing value key will identify if a tolerance will be allowed on the
purchase. A Purchasing value key of 01 means that there is not a
tolerance limit set in the master record. If there is a tolerance limit set of
10% this means that you will accept 10% below or above the quantity
stated on the purchase order. One example in setting a tolerance would
be in the procurement of printing.
Continue to the Foreign trade import tab.
11
8
10
12
47

From this tab you can view the material number, description and plant.
Continue to the Purchase order text tab.
Again you can view the material number and description.

A more detailed text can be viewed in the text box.
Continue to the Accounting 1 tab.
48

From the Accounting 1 tab you can view the material, plant and the base unit of
measure which in this example is EA.
13. The four digit number entered in the Valuation Class field indicates which
G/L will be used on the requisition. The G/L account can be changed on
the PR.
14. The Price Control field is also displayed. A V in this field means
moving average price. The moving average price is calculated by
dividing the value of the material by the quantity of the material in stock. It
is recalculated automatically by the system after each goods movement or
invoice entry.
Continue to the Accounting 2 tab.
14
15
Again, you can view the material number, description and plant.
Continue to the Plant stock tab.
49

On the last tab you can view the material number, description and base unit of
measure.
To exit the report green arrow back twice. This will take you back to the Main
Menu screen.
50
Requisition
Chapter 5
Timesaving Tips
51

Chapter 5 Timesaving Tips
How to Set the PO Price Field on the Valuation Tab.
In the past, agencies that created purchase requisitions wanted to know why the
purchase requisition price did not default to the follow-on purchase order. The
system was not configured for this because the purchase requisition price is
usually an estimate. The system does default the price when converting a
request for quotation to a purchase order because the price is set and an info
record is created, which defaults the price to the purchase order. However; for
some agencies, the set price is known at the purchase requisition creation. By
adopting the price from the purchase requisition at purchase order conversion,
time would be saved. Agencies can maintain personal settings at the user level
to either adopt or not adopt the price as a default.
Go to: System>User Profile>Own Data
1. Click on the Parameters tab.
52

2. Scroll down to the next blank parameter ID.
3. Type EFB in the Parameter ID field.

4. Type 01 in the Parameter value field.
<Save>
53

Set Your Default Values
Setting default values will save you steps when creating a purchase requisition.
Fields that remains constant can be set as default values. These values will
automatically populate the fields each time a purchase requisition is created.
Before we create a requisition lets set our default values.
Transaction ME51N
1. Click on the Default values icon.
54

From this screen you can set the Item category, Acct.assign.cat (Account
Assignment Category), Delivery date Requisitioner and Tracking Number as
default values.
2. Click on the More fields icon
default settings.
to select additional
55

3. Each of the Hidden fields may also be used to set default values.
4. In this example we will set up the purchase order price and the plant as
default fields. Highlight the lines and click the single arrow pointing to the
left.
3
56

5. The Plant and Purchase Order Price are now in the display field
column.
<Enter>
57

Now we can enter 9999 in the plant field and set the PO price field to As net
price.
<Save>
Note: You do not have to click the Always propose box to have the settings
default.
58

The Copy Item Feature
The copy item feature allows the requisitioner to copy one line item (item 10) to
the next line item (item 20).
For example, your agency is purchasing 5 computers. They are identical except
each computer has a unique asset number that will need to be entered. Instead
of entering all the same information 5 times on the purchase requisition, you can
use the copy feature to save time.
1. To copy a line item, highlight the line and click on the copy item icon.
59

2. Item 10 was copied to item 20. Make any changes to new line items such
as changes to the account assignment category, quantity, material,
delivery address or any field that is not grayed out. In this example Item
20 had a new asset number that needed to be entered on the Account
Assignment tab.
To continue the process, just highlight the item and click on the copy item icon.
60

The Layout Settings Feature
You can add or delete a column on the purchase requisition. For example, the
requisitioner might want to add a total value column to the PR.
1. To add or delete a column, click on the dropdown to the right of the
Layout Settings icon.
2. Click on Change Layout.
61

3. To add a column, such as total value, highlight the line from the group on
the right side of the screen.
4. Click the arrow pointing to the left.
5. To move a column, highlight the column to be moved and click the up or
down arrows.
62

The column names to the left are the columns now associated with the
requisition.
6. To delete a column, highlight the line from the column.
7. Click on the arrow that is pointing to the right.
<Save>
63

8. In the Save layout field, enter a title and name for the layout.
9. Make sure that the User-specific and Default setting boxes are
checked.
<Enter>
You will receive a message that the layout was saved.
64

The screen below shows the added Total value column.
65
Requisition
Chapter 6
Creating a Purchase
Requisition
66

Chapter 6 Creating a Purchase Requisition
What is the Benefit to using a Purchase Requisition?
A purchase requisition (PR) is a Materials Management document created in
AASIS to start the process of fulfilling the need for goods and services. The
Department of Finance and Administration (DFA) recommends using the
purchase requisition because in most cases budget is committed based on the
estimated cost of the goods or services when the requisition is saved.
If there is not enough budget available to cover the amount of a purchase
requisition or purchase order, you will receive a system message that says
budget exceeded. The system does a budget availability check when a
requisition or purchase order is saved.
Scenario:
You are a State employee working in the purchasing department of the
Department of Human Services. You have received a paper request for 100
reams of xerographic paper. It is to be delivered to DHS Independence County.
They need a four week delivery on the paper.
Lets create a purchase requisition for the xerographic paper using:
Transaction ME51N
67

Leave the default document type (Req to PO) since this purchase requisition will
be referenced by a subsequent purchase order. The source determination box is
not being used by AASIS at this time.
1. Open the Header section.
You may enter instructions or specifications in the Header note text field.
2. Open the Item overview section.
68

Remember from Chapter 2 that the account assignment category designates
which cost objects may be used when creating the purchase requisition. It also
determines the layout of the Account Assignment tab in the item details section.
3. Enter K in the A column which will require you to enter a cost center on
the Account Assignment tab in the item details section for this line item.
69

Searching for a Material
Enter the material number or click on the dropdown to perform a material search.
There are different search criteria that can be selected.
For best results when searching for materials to be purchased:
Select the Material by material type tab.
Enter GDSV as the material type.

- or -
Select the Plant material by description tab.
Enter 9999 as the plant.
Either of these methods will restrict the hit list to those materials that have been
set up for purchasing use.
70

Multiple attempts with different search terms may be needed before you can be
certain the material does not exist in the system.
When searching for a material, remember to:
Use wildcards (*) properly.

o Wildcard before the search term will return materials that end with
the search term.
o Wildcard after the search term will return materials that begin with
the search term.
o Wildcard before and after the search term will return materials that
include the search term anywhere in the description.
o Separate multiple search terms with wildcards. The search string
must be entered exactly as it appears in the description, including
spaces and punctuation.
Use the singular form of nouns; however, if the noun changes form when it
becomes plural, use only the portion of the noun that applies to both the
singular and plural.
If you are unsure of the correct spelling, or if the word is frequently

misspelled, enter only the portion of the word of which you are certain, and
use wildcards (*) as described above.
4. Enter your search criteria in the Material description field.

<Enter>
71

5. Highlight the material you need.
<Enter>
72

6. Enter the quantity required
7. Enter the delivery date. Type the date or use the calendar by clicking the
dropdown. If the delivery date is less than two weeks from the date of the
PO or the delivery date is a holiday, you will receive a warning message
asking you if delivery can be made on that date.
8. Enter plant 9999 or an applicable plant number.
9. Enter the purchasing group. (PGr). That is the buyer who will be creating
the purchase order.
10. Enter the requisitioner (the person or place that requested the goods
and/or services).
11. Enter the Tracking number (you can search for requisitions in some MM
reports by tracking number).
8
9
73
10
11

Searching for a Vendor
Desired Vendor - The number of the vendor from whom you would like to
purchase the item(s) requested. This is not a required field on the requisition. If
the vendor number is unknown, you may perform a vendor search from this field.
Account groups unique numeric ranges categorize vendor master records. ASC
recommends that you search for the vendor by the Vendor Purchasing criterion
so only vendors that can be entered in the purchase order will be available for
selection.
12. Click on the dropdown icon
to begin the vendor search.
12
74

to view the search options.
14. Choose Vendors: Purchasing

13
14
15. Enter the purchasing organization (your business area). This will limit the
search to the vendors that can be used by your agency.
16. Using the wildcards as in the material search, type in a portion of the
vendor name surrounded by (*). Example, the vendor is Interoffice
Supply. Type *Inter* in the Name field.
<Enter>
16
15
75

17. Highlight the vendor.
<Enter>
17
18. Enter the purchasing organization.

<Enter>
18
76

The Account Assignment Tab
The account assignment tab shows the cost object fields depending upon the
account assignment category chosen, (in this case the cost center) was
entered, and when the enter key is hit, the general ledger account number (which
is derived by the material/material group), business area, fund, functional area
and funds center (derived from the cost center), commitment item (derived from
the G/L account) and Funds Reservation fields are populated. The system will
also give you a message to go to the Delivery Address tab next to enter your
delivery address. Budget will be committed based on the budget quad derived
from the cost object.
If other account assignment categories are chosen, the appropriate cost object
fields will be open for completion. If the account assignment category U
unknown is used, the account assignment tab does not appear. There is no
budget committed.
19. If the purchase requisition contains multiple items going to the same cost
center, click on the repeat icon.
Go to the Delivery Address tab.
19
77

to choose the delivery address.
20
21. Go to the Country, region, sort field, name, City, Street tab.
22. Type the purchasing organization in the Search Term 1 field.
<Enter>
21
22
78

23. Highlight the appropriate delivery address from the list of addresses.
The delivery address is the locations that taxes will be calculated.
<Enter>
23
The delivery address will populate on the delivery address tab for the selected
line item on the purchase requisition.
<Enter>
The delivery address number will populate on the delivery address tab for the
selected line item on the purchase requisition.
79

If the goods are to be picked up at the vendors location, you will not be able to
enter the vendor number in the vendor field from this transaction. Enter your
agencys address number in the address field. After you have completed and
saved the requisition you can go into ME52N and change the vendor information
to the vendor location.
Go to the Valuation tab.
24. A price is required for this line item and must be entered in the Valuation
price field.
25. You can set the PO price field as a default. If you choose Do not
adopt, the price will not populate in the purchase order.
Note: Taxes are not calculated on the PR; therefore, no budget is committed for
the tax amount.
Go to the Source of supply tab.
24
25
The Source of supply tab is another option for choosing a vendor. This option is
most often used when the agency has a specific contract with the vendor. You
may enter the agreement (contract) number or select assign source of supply to
obtain the vendor.
Click on the Text Tab.
80

From the Text tab, you can make changes to the material master text and enter
any additional details for the vendor. Notes to the buyer may be entered to give
the buyer or purchasing agent additional information about the item. Notes to
buyers will not print on follow-up documents.
26. Data entered on the requisition can be checked by clicking on the check
icon.
This checks to see if any required information has been omitted. If the purchase
requisition has no errors, a message is displayed at the bottom of the screen
No messages issued during check.
<Save>
26
You will receive a document number.
81

How Do I Attach A Document To A Purchase Requisition?
You can attach a document while you are creating the requisition or you can
attach a document using the change transaction (ME52N) after the requisition is
saved.
1. Click on the Services for Objects icon.
2. Click on the Create icon.

3. Select Create Attachment.
82

4. Find the document or file that you wish to attach and click the Open icon.
You will receive this message at the bottom of the screen.
If you attach the document during the creation of the purchase requisition you will
continue to create the requisition and receive a purchase requisition number.
83

How Do I Retrieve The Attached Document?
Go to transaction ME52N Change Requisition or ME53N Display Requisition.
Click the Other requisition icon.
Enter the document number you with to view.

<Enter>
84

5. Click on the Services for Objects icon.
6. Click on the Attachment list icon.

6
Double click on the attachment.
85

86
Requisition
Chapter 7
Viewing the Purchase
Requisition
87

Chapter 7 Viewing The Purchase Requisition
Lets display a purchase requisition document and look at the different fields.
Display a Purchase Requisition Transaction ME53N
Click on the Other requisition icon

display.
to type in the document you wish to
88

Click the Other document icon.
There are three sections to the Purchase Requisition.

9 Header
9 Item Overview
9 Item Detail
You can close or open each section by clicking on the Collapse/Expand icons.
HEADER
ITEM
OVERVIEW
ITEM DETAILS
89

About the Header:
The first field selection on the header is the document type. Document types
were discussed in Chapter two.
For a requisition that is to be used in creating a purchase order, you will use the
default document type Req. to PO.
The drop down shows other options such as Req. to OA which is used if the PR
will be referenced by an Outline Agreement, Req. to Prof Scv PO which is used if
the PR will be referenced by a Purchase Order for professional services or Req.
to Prof Svc OA which is used if the PR will be referenced by an Outline
Agreement for professional services.
90

Entering a header note is optional when creating a purchase requisition. It can
be used to notify the buyer of special needs or requirements for the material or
service. You can enter any necessary information in the text box on the right.
The text typed in this box pertains to the requisition as a whole. The header note
does not copy over to the purchase order.
9 The Continuous text allows additional text selections to be entered.
9 The Line editor allows you to search for and replace text strings.
9 The SAPscript editor allows you to display voluminous text.
You will not see the Release strategy tab until the requisition has been saved.
Once the document has been approved, you can review the Release group,
Release strategy and the Release indicator. The checkmark in the Stat.
(status) column means the purchase requisition has been approved and is ready
for further processing... Releasing the purchase requisition will be discussed in
detail in a later chapter.
91

About the Item Overview:
Account Assignment Category- designates which cost objects will be used. It
also determines the layout of the Account Assignment tab in the item details
section.
Material In the material field you will enter the number assigned to the good
or service to be procured. There are search options that we will go through in a
later chapter. The material number will derive the short text, unit of measure and
the material group from the material master record.
92

Quantity is the amount of the material requested. NOTE: When procuring a

service, ZLS (lump sum) is used where the quantity represents the total dollar
value of the service being requested and the net unit price of the item should be
$1.00.
Unit of Measure Any established amount or quantity (such as box, ream, case,
each, etc.) adopted as a standard measurement for other amounts or quantities
of the same kind. The unit of measure is derived from the material master
record. You must verify that this unit of measure is correct before saving the
requisition.
Delivery Date Anticipated date of delivery (NOTE: This is used in the

controlling module as the posting (debit) date of the commitment.) If the delivery
date is under two weeks of the date of the PO or the delivery date is a holiday
you will receive a warning message asking you if delivery can be made on that
date.
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Plant code used for storage locations within the State.
9999 Reference plant standard location used within the system by all
purchasing organizations.
1000 Physical storage location used by the Department of Human Services.
1300 -- Physical storage location used by ASH - Benton
1350 Physical storage location used by Arkansas State Hospital.
Purchasing Group a purchasing group is a centralized procurement group or

individual Agency/State Procurement Specialist, responsible for the requested
purchase. In some agencies this person is known as the buyer.
Requisitioner The value entered into this field is used for internal tracking to
verify who requested the goods or service. Entry in this field can be anything
designated by the agencys policy. This field accepts alpha, numeric or alphanumeric characters.
94

Tracking number The value entered into this field is used for tracking
purposes. You can narrow your search in MM reports by tracking number. Entry
in this field can be anything designated by your agencys policy. This field
accepts alpha, numeric or alpha-numeric characters.
Desired Vendor - The number of the vendor you would like included in the bid
process. This is not a required field on the requisition. If the vendor number is
unknown, you may perform a vendor search from this field. Account groups with
unique numeric ranges categorize vendor master records. ASC recommends
you search for the vendor by the Vendor Purchasing criterion so only vendors
that can be entered in the purchase order will be available for selection.
Purchasing Organization defines a specific group of people responsible for

the purchase. AASIS was designed to have the purchasing organization number
the same as the business area number for end user convenience.
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About the Item Details:
This section of the purchase requisition shows details of each line item. The
arrows next to the item description allow you to view the details of each line item.
Each tab of the item details has information pertaining to the selected line item.
Material Data tab:

From this tab you can view the material number, short text and material group.
This information was derived from the material master record.
Quantities/dates tab:
You can view the quantity, quantity ordered, open quantity, delivery date, req.
date and release date.
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Valuation tab:
The valuation price is a required field.
You can set the option for the price on the requisition to populate in the PO once
referenced.
Account assignment tab:

This tab is where you will enter the cost center or other account assignment
information according to the account assignment category selected in the Item
overview section of the requisition for each line item.
For account assignment category of (A) Asset, the business area, fund, fund
center and functional area are populated from the asset mater. For account
assignment category Blank, the fund, funds center and functional area are
derived from the plant. For other account assignment categories, the business
area, fund, funds center and functional area are derived from the cost center or
non-statistical WBS element.
Remember if you need to change the budget quad after the purchase requisition
has been saved, you must delete the line and reenter with the correct
assignment information.
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A General Ledger (G/L) account is required on the PR when the account
assignment is a cost center (K), internal order (F), or WBS element (P). AASIS is
configured to derive the suggested GL account based upon the valuation class
entered on the material master. For account category of A (Asset), you will have
to enter the asset number stored on the asset class associated with the asset.
AASIS does not permit a G/L account or other financial elements when account
assignment is unknown (U).
Source of Supply tab:

Des.vendor field:
If you entered the vendor number on the Line Item section of the requisition it will
also populate on this tab. You could also enter the vendor number directly on
this tab instead of on the Line Item section.
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Agreement field:
If your agency has an outline agreement set up for a particular good or service
you can type that number in the field to reference that outline agreement.
Assign source of supply button, the Fixed vendor field and the Info
record field:
An info. Record number is created in the system once an agency buys a
material or service from a particular vendor. You can click on the Assign source
of supply to select a vendor.
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You will receive a list of vendors that have supplied the goods or services in the
past for the requested material on the requisition. You can check the price we
paid per vendor. When the assign source button is clicked a green light will
indicate that the vendor was selected.
Status tab:
This tab will show you the history of the requisition. In the example below a
purchase order was created using this purchase requisition. The goods receipt
and the invoice receipt were created referencing the purchase order. You can
drill down to the purchase order by double clicking on the purchase order
number. Once you are in the purchase order you can drill down to the goods
receipt and the invoice receipt.
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Contact person tab:

This tab will display who created the requisition, the requisitioner, tracking
number and purchasing group number. This tab will also display a date on the
requisition showing if any changes were made.
Texts tab:
The Material Master Text will default from the material master record. You can
change, add or delete information from this defaulted text. The information will
be changed only on the purchase order for that line. Changing information will
not change the material master record.
The Notes To Buyer is for additional information to be told to the person creating
the purchase order needs to know regarding the order. This text will not print on
the purchase order.
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Delivery address tab:
This tab displays the delivery address.
If the goods are to be picked up at the vendors location, enter the vendor
number in the vendor field.
We can view the postings from the requisition we entered and see how they
affect the various modules of AASIS.
How Do I View the Follow-On Requisition Documents?
You can drill down to view the postings in transaction ME53N.
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Enter the number of the purchase requisition you wish to view.
<Enter>
Go to Environment>AC commitment documents.
103

A list of documents displays.
How Do I View the FM Document?

Double-click the Funds Management Document to continue.
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The posting to funds management recorded a purchase requisition commitment
to the fund, funds center and commitment item.
Information contained in this document also includes the currency, ledger, year,
FM posting date, Item number, and amount type.
<Back>
How Do I View the Controlling Document?
Double-click the Controlling Document to continue:
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The purchase requisition post as a commitment in controlling.
The controlling document displays the reference document number, item
number, name, fiscal year, value, cost element number, cost center, functional
area and fund.
Note: The cost element is the same as the GL code.
<Back>
106
Requisition
Chapter 8
Selecting Approvers
107

Chapter 8 Selecting Approvers
Approval/Release Process
The purchase requisition must be approved (released) before follow on actions
can occur. This is an important step in the process. Many requisitions get
dropped at this point in the process. Remember when the purchase
requisition is saved, it commits budget. Once the purchase requisition is
approved it can be referenced by follow on documents.
What Is Workflow?
In the Materials Management module, Workflow has been configured to alert
users when they have purchase documents pending release. When the user
creates and saves a purchase requisition, the system sends a message that you
need to select approvers. Once the approvers are chosen, the system notifies
the approver and automatically takes the approver into the AASIS release
transaction to execute the release for the designated document. If multiple
releases are required, once the first release (AG) is completed, the system
automatically notifies the user with the next level of approval needed to release
the document.
Upon approval, the purchase requisition may be processed into a Request for
Quotation (RFQ) or Request for Proposal (RFP), or directly into a Purchase
Order (PO) or Outline Agreement (OA).
How Do I Choose Approvers?
You created a requisition and received a number.
Exit the document.
You will receive the pop-up box below requesting that you select approvers for
your purchase requisition.
1. Click the Inbox icon.
108

2. Click on the blue box to the left of the word workflow.
3. Double-click on the requisition that you wish to send for approval.
109

4. The names of the assigned approvers will be listed. Check one or multiple
boxes. When the first person approves the requisition it will no longer be
in the other approvers workflow inboxes.
5. Click AUTOSEQUENCE to continue.
5
4
6. The system will display the approvers that you selected. When you click
DONE the purchase requisition will be sent to the approvers inbox.
110

1. You can also enter workflow by clicking on the SAP Business Workplace
icon from the AASIS MENU screen.
2. Click on Inbox.
111

3. Click on the box to the left of Workflow
4. Now you can continue to select approvers.
112
Requisition
Chapter 9
Deleting and Closing
Purchase Requisitions
113

Chapter 9 Deleting and Closing Purchase Requisitions
How Do Purchase Requisitions Remain Open and Continue to Commit
Budget?
Entering a purchase requisition into AASIS causes a commitment to an agencys
budget. When you convert the requisition to a purchase order, the commitment
is relieved from the purchase requisition and picked up by the purchase order. If
the purchase order referencing a purchase requisition adds up to a quantity less
than that on the purchase requisition, then the purchase requisition will remain
open and continue to commit budget for the quantity that has not been converted
to a PO.
There are two reports you can run to view open commitments (purchase
requisitions, purchase orders and vendor invoices):
Actual Budget Report Y_DEV_80000046
The Open Commitment Item Report - ZCMT
There are two reports you can run to display your open requisitions. They are:
List Display of Purchase Requisitions Transaction ME5A
List Display of Open Requisitions Transaction ZOPENREQ
Actual Budget Report -Transaction Y_DEV_80000046
Menu Path: Special Transactions and Reports-State of Arkansas>Financial
Accounting>Funds Management>Reporting>Budget/Actual>Actual Budget.
The Actual Budget report will reveal commitments and expenses to the budget.
These commitments can include incomplete purchase requisitions, purchase
orders, funds reservations and unpaid vendor invoices. A purchase order line
item continues to be a commitment even after the entry of the MIGO (Goods
Receipt document). The commitment is relieved on the purchase order and
transferred to the Logistics Invoice when the MIRO transaction is entered. All
open commitments move into the expense column after the invoice is paid via
the payment program and FM is subsequently updated.
114

Selecting The Report
1. Enter the fund. (You must enter either a fund or funds center.)
2. Enter the funds center. (This is optional if you entered a fund.)
3. Be sure that the Year commitment item equals the fiscal year selection.
4. Enter a commitment item if desired.
5. Agency from/CustFund is an optional field. You may enter the customer
number for your agency here. The number will always be 998xxxx00.
The xs stand for your business area.
6. Enter the current fiscal year and periods 1 to 16 will default. Change this
to periods 0 to 16 to select budget for the entire year. Period 0 captures
original budget loads and carry forward activities. You may change this if
you want to view a different period or range. NOTE: Commitments and
blocks are entered by period based on the posting date in the document,
but budgeted amounts are entered by fiscal year. When a single period is
selected, you will see a budgeted amount for the entire fiscal year and the
current period commitments and blocks.
7. Classic drilldown report selection enables you to export the report to an
Excel spreadsheet. You may also select the graphical report option for a
different view.
<Execute >
2
3
4
5
6
7
115

Viewing the Report
8. Click the plus signs or the Expand icon
to expand the report.
9. Budgets, commitments and expenditures and available budget are

displayed.
10. If the entire report is not displayed, click the right arrow to view the next
page.
10
116

Actual Budget Report Drill-Down
To drill down to line items in the budget report, select the amount for which
you want to view detail. Select Extras>Line Items from the blue menu bar.
The line items making up the amount will be displayed.
What Does the Line Items By Document Number Screen Show You?
Looking at the Value Type Text field will show you what type of documents
are consuming budget. You can view the original amount of the document
and any reduction that has taken place. If the original amount and the
reduction amount match, there is not an open commitment. When you see
that the reduction amount is less than the original amount further research
should take place. The difference between the reduction and the original
amount is the amount still committing budget.
117

Actual Budget Report Further Drill Down
You can drill down to the actual document by double clicking on the document
number you wish to view. This screen shows you the Quantities/dates tab.
The requisition was created for 1 each. There was a quantity ordered of 1
which leaves an open quantity of 0. This purchase requisition is no longer
committing budget.
The requisition was referenced into the purchase order that is listed on the
Status tab. This purchase order has now picked up the commitment from the
requisition.
118

Open Commitment Items Transaction ZCMT
Menu Path: Special Transactions & Reports (State of Arkansas)>Financial
Accounting>Funds Management>Reporting>Open Commitment Item Report
You can use this report to view commitment line items for the budget.
119

Selecting The Report
1. Enter the Fiscal Year.
2. Enter the Fund.
3. Enter the Cost Center.
Make any other desired selections to narrow down the report.
<Execute>
1
2
120

Viewing the Report
The report displays open commitment line items with cost object information.
The total amount of outstanding commitments is equal to the commitment
column on the Budget Report (Y_DEV_80000046). NOTE: You cannot drill
down into the document from this report.
Commitment Balances
The balances of outstanding commitments by fund/funds center/commitment
item for MM related documents and FI invoices are equal to the commitment
balance on the Y_DEV_80000046 report.
121

List Display of Purchase Requisitions Transaction ME5A
Menu Path: Logistics>Materials Management>Purchasing>Purchase
Requisition>List Displays>General.
The List Display of Purchase Requisitions Report will display a list of all
open requisitions. Account assignment information is not available on the
report; however, this can be viewed by the drill down option.
122

Selecting the Report
1. Narrow your search.
In this example we are pulling up all open
requisitions created by a particular buyer (purchasing group).
2. The default view in the Scope of List is ALV (ALV grid control). The
ALV (ALV grid control) view makes it much easier to download into
an Excel spreadsheet. From the ALV view you can also change the
layout of the report. For example, you can add a column so you can
view funding information.
Once you finish limiting your search, scroll down to the bottom of the screen
for additional selection criteria.
123

Selecting the Report (Continued)
3. Continue to narrow your search as needed. In this example, the cost
center was entered.
4. Click the dynamic selections icon to narrow the report by purchasing

organization (Business Area).
5. Click the arrow next to the Purchase Requisition folder to open.
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Selecting the Report (Continued)
6. Scroll down to Purch. Organization (purchasing organization). Click
on it to highlight and click the black arrow. NOTE: You can use any
selection on the list to narrow your search.
7. The Purchase Organization (purchasing organization) field appears

on the right side of your screen. Type in the purchase organization.
Click enter on the keyboard.
8. The dynamic selection icon
now shows 1 active.
<Execute>
125

Viewing the Report
The List Display of Purchase Requisitions Report gives a list of all open lines
meeting your search criteria. The report will list the quantity requested on
each purchase requisition, and if any quantity has been ordered against a
particular purchase requisition.
9. The Quantity column shows the quantity requested on the purchase
requisition
10. The Ordered column shows any orders that have been placed from the
quantity requested.
9
10
List Display of Purchase Requisitions Drill Down

11. Double-click on the line item that you wish to view.
11
126

Once you are in the purchase requisition, click on the Quantities/dates tab.
This will show you the quantity requested, quantity ordered and the open (not
yet received) quantity. Next, click on the Status tab.
The Status tab shows the PO that was created and released, and the quantity
ordered. You can drill down further to the purchase order by double clicking
on the Purchase Order number.
127

Report For Open Purchase Requisitions Transaction ZOPENREQ
Menu Path: Special Transactions & Reports (State of Arkansas)>Materials
Management>Purchasing>ZOPENREQ.
This custom report provides users with account assignment information not
displayed in ME5A. Displayed in the report are the Fund, Funds Center and
Commitment Item; however, it does not have drill down capability.
128

Selecting the Report
1. Narrow your search. In this example, enter the purchasing group
number.
2. Leave the Open only box checked. Scroll down to continue.
1
2
129

3. Take the Xs out of the Purchase requisition closed field and the
Deletion Indicator field.
The report will not include purchase
requisitions that have been closed or deleted.
4. Take the N out of the Processing status of purchase field.
5. Enter your Business Area, in the Purchasing organization field.
<Execute>
5
3
4
130

Viewing The Report
This report does not have drill-down capability. You can view the Purch.req.
(purchase requisition number), PGr (purchasing group number), Requisnr
(requisitioner), POrg (purchasing organization), TrackingNo (tracking number), A
(account assignment), Plnt (plant), Qty requested (quantity requested), Un (unit
of measure), Valn. price (valuation price), Curr. (currency), Per (per each)
column and the Req.date (requisition date). Scroll to the right to view the rest of
the report.
When you scroll over you can view your account assignment information. You
can view the Asset, SNo. (asset sub-number), Order (order number) if applicable.
Also displayed are the G/L acct (g/l account), BA (business area), cost ctr (cost
center), WBS element (if on the requisition) and the budget quad, which consists
of commitment itm (commitment item), funds ctr (funds center), Fund and FA
(functional area).
131

If a purchase requisition does not have a purchase order attached to it, or if the
purchase order referencing a purchase requisition adds up to a quantity less than
that on the purchase requisition, the purchase requisition will remain open and
continue to commit budget.
Deleting Unwanted Requisition Lines
You may have created a purchase requisition that is no longer needed. In that
case, it is necessary to delete such requisitions in order to free up budget. A line
can be deleted as long as it hasnt been converted to a purchase order. Use
transaction ME52N (change purchase requisition) to delete these lines.
Change Purchase Requisition Transaction ME52N
Requisition>Change
This transaction will allow you to delete a purchase requisition line.
132

1. Click on the Other Requisition icon.
2. Type in the purchase requisition number you need to delete.
3. Click the Other document icon.
4. Select the line/s to be deleted.

5. Click the delete icon.
133

Click the Yes
icon to delete the line.
There is now a trashcan in the Status column of the requisition line.

<Save>
134

Note the message indicating that the purchase requisition was changed.
NOTE: If you delete a purchase requisition by mistake you can undelete it. Go
back into ME52N and bring in the document you wish to restore.
1. Highlight the line you wish to restore.
2. Click to the right of the trashcan icon
and click on Undelete.
<Save>
1
2
135

3. You will notice the trashcan is gone from the Status field.
4. Also, you will see a system message that the purchase requisition is
changed.
Closing Purchase Requisition Items

The following technique explains how to close purchase requisition lines that
have been partially cleared by a purchase order. This process is also
accomplished using transaction ME52N.
Change Purchase Requisition Transaction ME52N
Requisition>Change
136

1. Click on the Other Requisition
icon.
2. Type in the purchase requisition number you need to close.

3. Click the Other document icon.
137

4. Go to the Quantities/dates tab in the item detail section of the purchase
requisition.
5. It shows there is an open quantity of 3.
6. To close, enter a checkmark in the Closed box.
<Save>
5
6
REMEMBER:
You have determined which purchase requisitions are still committing budget.
While some of the purchase requisitions are in the process of being completed,
some you may need to delete or close. You can delete a purchase requisition
line(s) if there is no follow-on document attached to it. You must close the PR
line(s) if a follow-on document is attached.
138

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Materials Management

Process -The Purchase

Materials Management Process-The Purchase Requisition

End users with the Agency Procurement Technician or the Agency

Agency/State Procurement Specialists (users that create purchase

What You Should Know Before Coming to Class

Materials Management Process-The Purchase Requisition

- Click the Save icon or press Ctrl+S.

- Click the Other Requisition icon or

-Click the Execute icon or press F8.

-Click the Back icon or press F3.

<Display next itemF8>

-Click the Display next item icon or press

-Click the Display previous item icon or

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management (MM) Module

Materials Management Process-The Purchase Requisition

What Is A Business Process?

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Req. to Prof. Svc. PO

Req. to Prof. Svc. OA

Normal QC ( Quote Constitutional Bid)

Normal CB ( Competitive Quote Bid)

OSP RFQ (OSP Request for Qualifications)

Prof. Svc. CB (Professional Service Quote Bid)

Logistics Invoice Verification

Materials Management Process-The Purchase Requisition

Vendor Payment Document

Payment generated via

The issued payment has

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

U = Unknown. U- Unknown: If the unknown account assignment is used the

Materials Management Process-The Purchase Requisition

Material Master Record represents a specific material or service and is

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

One Agency user creates the purchase requisition

A second Agency user approves the purchase requisition

Another user creates the purchase order

Another user approves the purchase order

Another user creates the goods receipt

Another user creates the MIRO

The Auditor of State produces and mails the payments

DFA processes the BAI file to clear the payments

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition

If you used U for the account assignment in the purchase requisition, an

Materials Management Process-The Purchase Requisition

What is the 3-Way Match?

Materials Management Process-The Purchase Requisition

Materials Management Process-The Purchase Requisition