518 lines
14 KiB
Markdown
518 lines
14 KiB
Markdown
# What Happens After Purchase Requisition Approval
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## Document Information
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- **Document Type**: Process Guide
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- **Audience**: All Procurement Users
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- **Last Updated**: 2025-10-30
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- **Version**: 1.0
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---
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## Overview
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Understanding what happens after a Purchase Requisition (PR) is approved is essential for planning your procurement activities. This document explains the approval consequences, status transitions, and document immutability rules.
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---
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## Table of Contents
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1. [Immediate Effects of Approval](#immediate-effects-of-approval)
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2. [Status Transitions After Approval](#status-transitions-after-approval)
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3. [Document Immutability Explained](#document-immutability-explained)
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4. [Budget Impact](#budget-impact)
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5. [Next Steps in Procurement](#next-steps-in-procurement)
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6. [Audit Trail](#audit-trail)
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7. [Frequently Asked Questions](#frequently-asked-questions)
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---
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## Immediate Effects of Approval
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When an approver clicks "Approve" on a Purchase Requisition, several things happen instantly:
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### 1. Status Change
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```
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Pending Approval → Approved
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```
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### 2. Document Lock
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- ❌ **All editing is disabled**
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- ❌ Cannot modify any field
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- ❌ Cannot add or remove line items
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- ❌ Cannot change quantities or prices
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- ❌ Cannot update budget information
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### 3. Approval Information Recorded
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The system captures:
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- **Approved By**: Name of the approver
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- **Approved At**: Date and time of approval (UTC)
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- **Approval Remarks**: Any comments from approver
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- **User Information**: IP address and system details
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### 4. Budget Commitment
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- Budget is marked as committed
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- Amount is reserved against budget code
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- Available budget is reduced
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- Budget tracking is updated
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### 5. Notifications Sent
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- Requester receives approval notification
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- Procurement team is notified
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- Finance team may receive notification
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- Next step assignees are alerted
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### 6. Audit Log Entry
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- Approval action is logged
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- Full audit trail is maintained
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- Timestamps are recorded
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- User actions are tracked
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---
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## Status Transitions After Approval
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Once approved, a PR can move through these statuses:
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### Approved → Converted to RFQ
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**When**: PR is converted to Request for Quotation
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**Process**:
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1. Procurement team reviews approved PR
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2. Decision made to obtain quotations
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3. RFQ is created from PR
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4. PR status updates to "Converted to RFQ"
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**Impact**:
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- PR remains permanently locked
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- RFQ process begins
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- Suppliers will be invited to quote
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- Original PR serves as audit reference
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### Approved → Converted to Purchase Order
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**When**: PR is directly converted to PO (without RFQ)
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**Process**:
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1. Supplier is already known
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2. Pricing is pre-agreed
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3. PO is created directly from PR
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4. PR status updates to "Converted to PO"
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**Common Scenarios**:
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- Single source supplier
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- Framework agreement purchases
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- Emergency procurements
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- Low-value purchases
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**Impact**:
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- PR remains permanently locked
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- PO is issued to supplier
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- Delivery process begins
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- Original PR serves as audit reference
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### Any Status → Closed
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**When**: PR is closed for various reasons
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**Reasons for Closing**:
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- ✅ **Completed**: Full procurement cycle finished
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- ❌ **Cancelled**: No longer needed
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- ⏸️ **On Hold**: Temporarily suspended
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- 🔄 **Superseded**: Replaced by new PR
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**Impact**:
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- PR is permanently archived
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- No further actions possible
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- Audit trail is preserved
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- Cannot be reopened
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---
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## Document Immutability Explained
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### What Is Immutability?
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**Immutability** means a document cannot be changed or modified after a certain point. For Purchase Requisitions, this happens at approval.
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### Why Is It Important?
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#### 1. Financial Control
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- **Before Approval**: Amount can change
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- **After Approval**: Amount is fixed
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- **Reason**: Budget commitment must be accurate
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Example:
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```
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PR #12345
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Draft: $5,000 → Changed to $6,000 ✅ (allowed)
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Approved: $6,000 → Cannot change to $7,000 ❌ (blocked)
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```
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#### 2. Audit Compliance
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- What was approved must match what was procured
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- Audit trail must show original approved amounts
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- No retroactive changes allowed
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- Complete accountability maintained
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#### 3. Process Integrity
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- Prevents bypassing approval workflow
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- Stops unauthorized changes
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- Maintains approval authority
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- Ensures proper governance
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#### 4. Legal Protection
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- Approved document is legal commitment
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- Serves as contract basis
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- Protects organization from disputes
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- Ensures compliance with regulations
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### Which Statuses Are Immutable?
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| Status | Immutable? | Can View? | Can Edit? | Can Approve? |
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|--------|-----------|-----------|-----------|--------------|
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| Draft | ❌ No | ✅ Yes | ✅ Yes | ❌ No |
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| Pending Approval | ✅ Yes | ✅ Yes | ❌ No | ✅ Yes |
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| Approved | ✅ Yes | ✅ Yes | ❌ No | ❌ No |
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| Rejected | ❌ No | ✅ Yes | ✅ Yes | ❌ No |
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| Converted to RFQ | ✅ Yes | ✅ Yes | ❌ No | ❌ No |
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| Converted to PO | ✅ Yes | ✅ Yes | ❌ No | ❌ No |
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| Closed | ✅ Yes | ✅ Yes | ❌ No | ❌ No |
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### Visual Indicators of Immutability
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When you view an immutable PR, you'll see:
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#### 1. Lock Icon 🔒
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```
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Purchase Requisition #PR-2025-001234 🔒
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```
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- Appears in page header
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- Clearly indicates locked status
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- Tooltip explains why locked
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#### 2. Document Locked Banner
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```
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┌─────────────────────────────────────────────────┐
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│ ⚠️ This document is locked and cannot be edited │
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│ Purchase requisitions cannot be modified after │
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│ approval. Contact your administrator if changes │
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│ are needed. │
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└─────────────────────────────────────────────────┘
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```
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#### 3. View Only Badge
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```
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[View Only]
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```
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- Appears near action buttons
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- Replaces edit/save buttons
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- Clear visual cue
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#### 4. Grayed Out Fields
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- All input fields are disabled
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- Text is grayed out
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- No cursor in fields
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- Clear visual difference from editable form
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#### 5. No Action Buttons
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- No "Save Draft" button
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- No "Submit for Approval" button
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- Only "Close" or "Back" available
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- Print/Export may be available
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---
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## Budget Impact
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### At Approval Time
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#### Budget Commitment
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When PR is approved, the budget is committed:
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```
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Budget Code: OPEX-2025-IT-001
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Available Budget Before: $50,000
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PR Amount: $10,000
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Available Budget After: $40,000
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Committed Budget: $10,000
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```
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#### Budget Tracking
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- Amount is tracked against budget code
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- Remaining budget is calculated
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- Future PRs check available budget
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- Budget reports show commitments
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#### Budget Period
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- Commitment is for current fiscal period
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- Crossing fiscal years may require special approval
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- Budget may roll over or expire based on policy
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### What If Budget Changes?
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#### Scenario: Budget Increased After Approval
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- Approved PR amount doesn't change
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- Additional budget available for new PRs
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- Original PR remains as approved
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#### Scenario: Budget Cut After Approval
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- Approved PRs are honored
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- May affect future PRs
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- Finance may review commitments
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- Special approval may be needed
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#### Scenario: Budget Reallocated
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- Finance handles budget transfers
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- Approved PRs follow original budget
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- New PRs use new budget allocation
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---
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## Next Steps in Procurement
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### Immediately After Approval
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#### 1. Procurement Review (Day 1-2)
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- Procurement team reviews approved PR
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- Verifies item specifications
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- Confirms supplier availability
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- Plans procurement method
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#### 2. Sourcing Decision (Day 2-3)
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Procurement decides:
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- **Option A**: Create RFQ (multiple suppliers)
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- **Option B**: Create PO directly (single supplier)
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- **Option C**: Use framework agreement
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#### 3. Document Creation (Day 3-5)
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- RFQ or PO is created from PR
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- PR status updates to "Converted"
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- Procurement process continues
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- PR serves as reference
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### Timeline Expectations
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#### Small Purchases (<$10,000)
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```
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Approval → PO Creation: 1-3 business days
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PO Creation → Delivery: 5-10 business days
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Total Time: 6-13 business days
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```
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#### Medium Purchases ($10,000-$50,000)
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```
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Approval → RFQ Creation: 2-3 business days
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RFQ Process: 7-14 business days
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PO Creation → Delivery: 10-20 business days
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Total Time: 19-37 business days
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```
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#### Large Purchases (>$50,000)
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```
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Approval → RFQ Creation: 3-5 business days
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RFQ Process: 14-30 business days
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Evaluation & Award: 5-10 business days
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PO Creation → Delivery: 20-45 business days
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Total Time: 42-90 business days
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```
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*Note: Timelines vary by organization and procurement policy*
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### Tracking Your PR
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#### Status Monitoring
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1. Navigate to **Procurement → Purchase Requisitions**
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2. Find your PR by number
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3. Check current status
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4. View status history
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#### Related Documents
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Once converted, you can see:
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- Link to RFQ (if created)
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- Link to PO (if created)
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- Related contracts
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- Delivery documents
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---
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## Audit Trail
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### What Is Recorded?
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Every action on a PR is tracked:
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#### 1. Creation
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- Created by (user name)
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- Created at (date/time)
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- Initial values
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#### 2. Modifications (Draft Stage)
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- Changed by (user name)
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- Changed at (date/time)
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- What was changed (before/after values)
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#### 3. Submission
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- Submitted by
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- Submitted at
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- Status transition: Draft → Pending Approval
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#### 4. Approval/Rejection
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- Approved/Rejected by
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- Approved/Rejected at
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- Approval remarks
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- User's IP address
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- System information
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#### 5. Modification Attempts (After Approval)
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- Attempted by (user name)
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- Attempted at (date/time)
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- What user tried to change
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- Why it was blocked
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- IP address
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- User agent
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#### 6. Conversions
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- Converted by
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- Converted at
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- Converted to (RFQ/PO)
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- Reference numbers
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### Viewing Audit Logs
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#### For Regular Users:
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- View approval history on PR detail page
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- See who approved and when
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- View approval remarks
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#### For Administrators:
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- Access full audit logs
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- View all modification attempts
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- See detailed change history
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- Export audit reports
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### Audit Log Retention
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- **Standard Retention**: 7 years
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- **Legal Requirements**: Per local regulations
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- **Access Controls**: Restricted to authorized personnel
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- **Backup**: Included in system backups
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---
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## Frequently Asked Questions
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### General Questions
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**Q: Can I edit my PR after approval?**
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A: No. Once approved, PRs are permanently locked to maintain audit integrity and financial control.
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**Q: What if I made a mistake in the PR?**
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A: Contact your supervisor or procurement manager. Depending on the stage:
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- Not yet converted: May need to create new PR
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- Already converted: Changes must be in RFQ/PO
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**Q: How long does approval take?**
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A: Varies by organization. Typically 1-3 business days for standard PRs. Urgent PRs may be expedited.
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**Q: Can I cancel an approved PR?**
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A: Not directly. Contact procurement team. They can close it if not yet converted.
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### Budget Questions
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**Q: Does approval mean budget is spent?**
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A: No. Budget is "committed" (reserved) but not spent until goods/services are received.
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**Q: What happens if budget is unavailable?**
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A: PR shouldn't be approved without budget. If approved incorrectly, finance will review.
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**Q: Can I use the same budget for multiple PRs?**
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A: Yes, as long as total doesn't exceed available budget. Each PR commits its portion.
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### Process Questions
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**Q: When will I receive my items?**
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A: After approval:
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1. PR converts to RFQ/PO (1-5 days)
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2. Supplier processes order (varies)
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3. Delivery (depends on items)
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Total: 2-12 weeks typically
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**Q: Can I track delivery?**
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A: Yes, once converted to PO. PO will have tracking information.
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**Q: What if supplier delays delivery?**
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A: Contact procurement team. They manage supplier relationships and delivery schedules.
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### Technical Questions
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**Q: Why can't I click Save button?**
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A: If PR is approved, there's no Save button. Document is locked. You can only view.
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**Q: System shows "Document Locked" error**
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A: This is normal for approved PRs. It's a security feature to prevent unauthorized changes.
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**Q: Can admin override the lock?**
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A: Generally no. Even administrators must follow audit and compliance rules. Special amendment procedures may exist.
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---
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## Important Reminders
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### Before Submitting for Approval
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✅ **Double-check everything** - You won't be able to edit after approval
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✅ **Verify quantities** - Make sure amounts are correct
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✅ **Confirm budget code** - Ensure correct budget is charged
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✅ **Review pricing** - Verify prices are reasonable
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✅ **Check delivery date** - Ensure timeline is realistic
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### After Approval
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📌 **Save your PR number** - Keep for tracking and reference
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📌 **Monitor status** - Check periodically for updates
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📌 **Coordinate with procurement** - They'll handle next steps
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📌 **Plan for delivery** - Prepare for goods arrival
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📌 **Keep documentation** - Save approval emails and documents
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---
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## Need Help?
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### Quick Reference
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- **View PR Status**: Procurement → Purchase Requisitions → Find PR
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- **Check Budget**: Budget Reports or Finance Department
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- **Track Delivery**: PO tracking once converted
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- **Approval Issues**: Contact your supervisor
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- **Technical Issues**: Contact IT Support
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### Contact Information
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- **Procurement Team**: [Your org contact]
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- **Finance Department**: [Your org contact]
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- **IT Support**: [Your org contact]
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- **Supervisor**: [Department specific]
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---
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## Related Documentation
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- **User Guide**: Complete guide to creating and approving PRs
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- **FAQ Document**: Answers to common questions
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- **System Administrator Guide**: Technical implementation details
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- **Training Materials**: Available from IT Department
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---
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**Document End**
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*This document explains the post-approval process. For complete PR lifecycle information, see the User Guide.*
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