Blanket Agreement and Release Process_s - Ghana Audit ...

GIFMIS USER TRAINING MANUAL

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GIFMIS USER TRAINING MANUAL of 19 Rev 2

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Create Blanket Purchase Agreement and Blanket Release


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Create a Blanket Purchase Agreement and Blanket Release

OBJECTIVE

Create a blanket purchase agreement

Enter your item

Enter price breaks for volume purchases

Enter notification controls so that you’ll be warned by the system of certain situations that are either expected or might occur with this blanket purchase agreement.

Submit your purchase agreement for approval

Issue a blanket release to place your first order against the agreement

Submit your blanket release for approval

Return to the Blanket Purchase Agreement to view how it was updated as a result of the release

Run the Purchase Order and Releases Detail Report

Blanket Purchase Agreements You create blanket purchase agreements when you know the detail of the goods or services you plan to buy from a specific supplier in a period, but you do not yet know the detail of your delivery schedules. You can use blanket purchase agreements to specify negotiated prices for your items before actually purchasing them.

Blanket Releases

You can issue a blanket release against a blanket purchase agreement to place the actual order (as long as the release is within the blanket agreement affectivity dates). If you use encumbrance accounting, you can encumber each release.

Create a blanket purchase agreement

1. Access the appropriate responsibility based on the MDA. For ex: PO Procurement Officer, CAGD Responsibility.

2. Navigate: PO Procurement Officer, CAGD Responsibility > Purchase Order ->Purchase Orders. Click on Open Button.


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3. After clicking on Open Button the Purchase Order Document window / forms opens window. In the form the following fields appear:

a. The operating unit value will default: For ex: CAGD. Based on the MDA / Responsibility.

b. The Create Date is generated by the system and will be the system default.

c. PO, Rev Field: PO number generated by system after saving the document during any stage of the Purchase document creation process.

d. Type: Appropriate value to be selected from the list of values based of the type of document that is to be created in the system. For ex: The value here is changed to Blanket Purchase Agreement (BPA)

e. The supplier name to be entered. For e.g.: 18 July Limited.

f. The Site name to be entered. For e.g.: SETHI PLAZA, 2N.

g. The bill to and ship to field values will be defaulted by the system based on the configuration. For ex: CAGD HQ


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h. The Buyer Name will be defaulted by the system.

i. The status is set as Incomplete is defaulted by the system for any new PO document until submitted for approval.

j. The contact Field is optional

k. The Currency is defaulted by the system

l. Amount Agreed: Purchasing displays the agreed-to amount for the agreement. The amount Released value should not exceed the Amount Agreed. (Note also that if you change the Amount Limit in the Terms and Conditions window, the Amount Agreed should be equal to or less than the Amount Limit.). For ex: GHS 10, 0000.

m. The description field is optional.

4. Enter the appropriate supplier and site

5. Enter the Amount Agreed : 10000 GHS


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6. Navigate to the Terms and Conditions window to make changes to payment terms and adding other information

Click the button Terms

7. In the Term Window you can give the following information as needed:

Payment Terms: For ex : Immediate Freight, Carrier, FOB (Free on board), Pay on are all optional fields.

May be used based on the requirement of the business by selecting appropriate values.

Confirming Order check box enable to indicate that the purchase order is a confirming order. A confirming order is an order that you are submitting formally to confirm a verbal order already placed with the supplier.

Select the Acceptance required method. If you select a method, you can enter the due By date, when you require the supplier to return an acceptance for your purchase order

Enter a Supplier Note and a Receiver Note. You can enter up to 240 characters in these fields. All these are optional fields. May be used based on the requirement of the business.

Agreement Controls Region: Effective Dates: For example: Enter dates starting today and extending for one year. Enter Effective from and to dates to limit the agreement controls by time.


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Amount Limit = 21,000. The amount limit controls the total amount/value for all releases to be made against the PO documents like BPA or CPA.

Minimum Release = 1000: System will not allow to approve any release less than 1000.

Note: You can also encumber the BPA by giving the budget account in the encumbrance tab.

Additional notes to Suppler or Receiver can also be given optionally.

7. Close Terms and Conditions window by clicking on the X mark

8. Click in the Line Tab to enter the first item.

Enter your first item

Enter Num = 1 Enter Item Category = for eg : Water 83101500 Description = Water supply Price = Enter Price 100


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Enter price breaks for volume purchases

Price Breaks and Discount: Price Breaks are given for volume purchases by the supplier depending the quantity. The Discount is given by the supplier based of the price break of the quantity.

For ex: If quantity 20 is released then the price will be 100 with a discount of 2%

9. Navigate to the Price Breaks window

Click on the button Price Breaks

Enter the following price breaks for this item:

Num Org Ship-to Quantity Break Price Discount

1 CAGD CAGD HQ 20 98 2

2 CAG CAGD HQ 15 99 1

3 CAG CAGD HQ 10 100 0

Click on the Save icon Save the form.

10. Optionally you can set notification controls.


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For planned purchase orders, blanket purchase agreements, and contracts, you can establish expiration and release control notification conditions and specify the number of days before the condition is met that you want to be notified. In the Notification Controls window, accessible through the Purchase Orders window, you can specify the following notification conditions:

Amount released by date

Amount not released by date

Amount not released

Amount released

Expiration date

When the notification conditions are met, Purchasing sends you an Alert (or email) so that you can take appropriate action

Navigate to the Notification Controls window

(Menus) Tools > Notification Control

11. Enter the following information, for example: Enter Notification Control to warn you for the Amount released.

Click in the Condition field and select appropriate value from the list. Enter effective dates and amount. Based on this, you will be notified or alerted by the system whenever an amount of 1000 is released on this BPA.


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Click on Done Button, once completed.

12. Submit your blanket purchase agreement for approval

Click on the Approve Button

13. This will open the Approve Document window


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Click the button OK

The Blanket Purchase Agreement is submitted to the approver based on the hierarchy for the approval process.

The approver will approve notification received for the BPA from his/her log in.

This complete the process of creating a Blanket Purchase Agreement (BPA)

Next: Issuing a Blanket Release

1. Access the appropriate responsibility, for ex : PO Procurement officer CAGD, responsibility

2. Navigate to Purchase Orders -> Releases->Click on Open


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3. This will open the Releases Window.

The operating unit will default based on the MDA and responsibility. For ex : CAGD GOG.

The buyer name will default based on the setup.


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4. Enter the Blanket Purchase agreement that is approved by the approver in the PO, Rev Field. The rest of the details in the header region of the release is generated by the sytem.

5. Click in the Shipment Tab and enter the following information

Num : 1 , Line : Select the item from the list of values , Quantity : Enter Quantity , for ex : 50 , Price: This value will default based on the price break defined in the BPA.


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6. Click in th Distribution Button and give the appropirate Charge account. For ex : 01.01000.70112.0100201001.010202.1020204.0000000.300430.0304300.000000.000000.2210708

7.Enter the charge account

8. Save the form using the save icon and close Distribution window by clicking the X

mark.

9. Submit the Release for approval by clicking on the Approval button


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10. This will open the Approve Document window. Click on the OK button to initiate the approval process.

Note: Blanket Release Approval will proceed to the entire approval path as for Purchase Order.

This completes the process of issuing and submitting the release for approval process.

Return to the Blanket Purchase Agreement to view how it was updated as a result of the release with the following steps


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1. Navigate to the Purchase Orders window

Purchase Orders > Purchase Orders

2. Use F 11 and Ctrl 11 to retrieve the BPA number on the Purchase order form.

3. Notice the value release amount updated in the BPA document.


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4. Submit the Purchase Order and Releases Detail Report

Submit the Contract Status Report, which is the standard report from Oracle. Use the Menu ->View ->Requests-> submit request submission window OR

Navigate to the Submit Request window: Navigate -> Reports > Run-> Click on Open Button

2. Give the following information: Submit a New Request > Single Request -> OK -> Enter Name of the report. Request

Name = Purchase Order and Releases Detail Report Operating Unit = CAGD Purchase Order Numbers From = Your blanket purchase agreement number Purchase Order Numbers To = Your blanket purchase agreement number


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Click on the OK Button. Click on the Submit Button

Click on the Button NO on the Decision Window for Submit Another Request.

3. Monitor progress and view output when complete: Menus > View > Requests-> Click on the Button Find.


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4. Click on the button View Output

5. The output file will open in the browser.


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This completes the process of verifying the released amount and using the standard report for the same.

End of Document.

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