How to automate collection of request?
Purchase request - what is it?
A significant part of raw products / materials / services necessary for the company may be absent, which means it must be purchased. In order to plan and purchase carefully, it is important to begin the process with formation of a purchase request.
A purchase request is a standardized form that is filled by an employee to inform a responsible manager or department that they need to receive certain goods or services.
What information is contained in the purchase request?
The mandatory data in such a document is the date of desirable receipt, as well as the name and quantity of goods. Due to the process, a company can also add other fields for filling to this form (e.g. category of goods, items cost, etc.).
Purchase requests are actively used in companies where 2 or more employees take part in the purchasing process. For companies that purchase goods / services for different departments / offices / warehouses, Requests are also quite useful.
Let's consider the use of purchase requests due to an example of an IT company with 3 offices in different cities.
The purchase department is located in the central office, but purchasing itself is also regularly carried out for administrative and marketing departments in other cities.
In the area of purchasing, the administrative department is responsible for providing the office with water, food, stationery, household goods, cleaning, etc.), and the marketing one - for promotion of the company (business souvenirs, advertising).
At the same time, each purchase is approved at the beginning by a local manager, and then transmitted to the central office.
How to track the departments needs in each office? How to set up communication between all the participants? How and when to plan a purchase? How to effectively allocate the budget for each office?
All these questions will be solved by purchasing requests:
1. If there is a need (a banner for an event or just an ordinary pen), an employee forms a request for the purchase and passes it to the local responsible manager.
2. The manager verifies the request (e.g. within the relevance / budget) and rejects / edits / validates it.
3. Upon approval of the local manager, a request enters the central purchasing department, where it is considered and included to the purchasing.
Creating a purchase request allows the company:
- to meet the needs of all the company employees in terms of purchase;
- to understand clearly what and how much of the materials are to be purchased;
- to minimize labour costs for the preparation, verification and approval of purchase orders;
- to draw up a purchase plan for the period;
- to control easily the purchase budget in the context of individual departments / customers.
Process automation in Precoro
Manual creation of requests, communication between requests initiators and approvers, understanding of the request actual status usually cause a lot of difficulties for companies. In order to set up an easy and, at the same time, accurate process, the creation and approval of purchase requests was automated in Precoro.
How to enable and customize the "Purchase Request" function?
1. Go to the "Settings" menu.
2. Go to the "Basic" section.
3. Open the "Purchase Request" tab.
4. Turn on the switch ("ON")
5. In the same tab, tick the functional that you plan to use.
- "Repeat" - each request can be repeated by clicking a corresponding button on the request page;
- "Cancel" - allows the initiator to cancel completely the request, which has not been confirmed and submitted to the approval yet;
- "Download" - each request can be downloaded in xls and pdf-formats;
- "Comments" - allows you to leave comments in requests;
- "Manual Product Creation" - allows a user to create a request for a position that is not in the directory;
- "Add documents" - the documents can be attached to the request;
- "Show prices in the purchase request" - the prices of goods from the catalogue are displayed when creating a request;
- "Show prices in confirmation of the purchase request" - the goods prices from the catalogue are displayed upon confirmation of the request;
- "Use notes" - allows you to leave notes in purchase requests;
- "Approval of Purchase Requests" - allows you to configure the approval chain.
6. Click "Update" to save the settings.
How to give users access to create / approve Purchase Requests?
When creating or editing a user:
- set the "Purchase Request" role to allow a user to create requests
- set the "Purchase Request Confirmation" role to allow a user to approve requests
How to create purchase requests?
1. You can create a purchase request:
- on the desktop, by clicking on the "Create new purchase request" button;
- by clicking on the "Plus" sign near the "Purchase Request" section;
- directly in the "Purchase Request" section.
2. Specify the desired delivery date and the location for which the purchase is required.
3. Select products in the catalogue and set the required amount, click on the "Request" button.
4. For your convenience, use supplier and category filters or search feature.
5. If a required item is not in the directory, use a request without the catalogue.
6. If necessary, the position can be edited or deleted by pressing the "Edit" / "Delete" button in the item line.
7. If the request is ready, click the "Confirm Purchase Request" button.
8. The request can be cancelled completely, if it has not been confirmed and submitted for approval yet. To do this, click "Cancel".
9. After the "Request" has been confirmed, it can be sent to the approval chain or immediately transferred to the purchase department to form a "Purchase Order"
10. As soon as a purchase order is generated due to the request, its status changes to "Pending purchase" and the expected delivery date will appear. After a purchase order is purchased - the status of the request will also be changed to "Purchased".
How to add and edit a chain of purchase requests approval?
1. Verify that the "Purchase Request Approval" function is included in the "Basic" section.
2. Go to the "Setup" menu.
3. Open the "PR Approval Steps".
4. Click "Add a matching step" to create a new step.
5. Set the approval priority - the order of approval (it is especially important if several responsible people participate in the approval chain)
6. Set the step name.
7. Click "Create".
8. To disable the step, click "Edit" in the "Action" column and deselect the "Enabled" checkbox. Click "Update" to save the settings.
9. In the "PR Approval Steps" section, add a user, who is responsible for this, to the step *.
10. A certain sum can be set to an approver by clicking the "Edit" button next to the email of a required user. For example, if you set the type "More" and the amount "1000", requests only with quantity equal to more than 1000 will enter for approval of a manager.
11. To remove an approver from a step, click "Edit" next to the appropriate email and click the "Delete" button.
* Note that if two users from a shared location are installed at one step, they will both be able to approve requests for that location. In order for the request to go to the next step, it is enough to approve it only by one of the installed users.
How to confirm / reject / edit purchase requests?
1. You will learn about new confirmation requests from your e-mail or directly in your Precoro account (an orange infocard on the "Purchase Request" dashbord).
2. To process the request, go to the link in the notification by mail or open the infocard and click "Show" next to the corresponding request.
3. By pressing "Confirm", you will submit the request to the next approval step or to the stage of creating an order.
4. By clicking "Disable," you will completely cancel the request.
5. If necessary, each item can be edited:
- "Edit" - you can change the current quantity of goods in the request, add attribute values;
- "Delete" - completely remove an item from the request;
- «Replace» - instead of the current product select another item from the catalogue with the necessary quantity.