With the implementation of the Purchasing Component of IRIS Materials Management, business practices in procurement will be standardized and streamlined. Employees who have purchasing and acquisition responsibilities can anticipate several changes and improvements:
Electronic Workflow and Approvals
After end-users create requisitions online, the SAP functionality routes those documents to the appropriate approvers. Employees designated as approvers receive notification via SAP e-mail.
The advantages of electronic workflow and approval are:
- Structured and consistent approval process
- Quicker flow of documents
- Less processing time for approvals
The new system supports electronic creation of documents associated with the procurement process via particular transactions in the SAP software. Upon creation, these documents are assigned unique numbers. Users can use drill-down capabilities to view details on requisition, purchase orders, goods receipts, invoices, and check information.
The advantages of building electronic documents include:
- Greater efficiency in initiating purchases
- One-time data entry
- Improved access to information.
Real-time Access to Data
The University’s procurement activities now will take place in real time, rather through batch processing or manual paper handling. Purchasing buyers and departmental personnel alike can view and monitor the status of purchase orders, goods receipts, and invoices online. Accounting records likewise are updated in real time, giving users current information at all times.
- Less processing time
- Easy determination of document status
- Greater accuracy in reports.
Documentation and Audit Information
The University’s new procurement system offers additional controls and improved audit information. System audit trails for all activities such as document creation, changes in documents, approvals, rejections, goods receipts, and invoicing result in strong documentation for accountability. Within the SAP software are audits of “who, what, and when” on each document.
The advantages of online of online audits and electronic documentation are:
Greater controls in procurement processing
Better information for problem-solving
Improved audit capabilities for accountability.
Centralized Receipt of Invoices
Accounts Payable now will serve as the centralized point of receipt for all invoices for the campus. Each purchase order will reflect the Accounts Payable address information for mailing invoices. Upon receiving invoices, Accounts Payable staff members can verify information on goods received (item, quantity, cost) and enter invoice information into the new system.
The advantages of centralized receipt of invoices include:
Better management of resources
Accurate data on liabilities for goods and services
Improved vendor relations.