Procurement and Purchasing
Related Learning Hubs:
Requisitions for Goods and Services
A purchase requisition is a request to purchase goods or services from a supplier. Workday is the single point of entry for all requisition activity – all purchase orders and contracts begin as Workday requisitions. You can see the status of your requisition, including the Process History, and communicate internally via the activity stream. There is help text, validations, and guided tours to help employees fill out the requisition accurately.
There are two methods to request goods or services in Workday. For Shell Shop requisitions, employees begin in Workday, are automatically taken to Shell Shop to select their items, and are automatically taken back to Workday to check out. Requesting non-catalog items is the process of requesting goods/services which are not available in Shell Shop. All requisition activity moves through the process with electronic approvals and forms within Workday.
Terminology
- Requisition – A requisition is a request to purchase goods or services from a supplier.
- Catalog Requisition – Catalog requisitions are requisitions associated with Shell Shop punchouts.
- Non-Catalog Requisition – Non-catalog requisitions are requisitions not associated with Shell Shop.
- Requisition Types – To start a requisition in Workday, users select a requisition type which categorizes the request for goods and services. The requisition types are Standard Requisition, Competitive, Delegated Consulting Agreement or Supplier Agreement Requiring Approval, Multi-Year Agreement, and Multi-Year Sole Source Agreement.
- Standard Requisition – A Shell Shop requisition or non-catalog requisition where the goods/services are not solely available from one supplier (i.e., Sole Source), where bidding is not necessary (in other words, Competitive), and no agreements requiring a signature exist.
- Competitive – The requisition requires competitive bidding. The supplier is usually unknown. Therefore, Procurement competes to source the goods/services.
- Sole Source – A requisition where the good/service requested is only available for purchase from a single/sole source and is above delegation threshold. The requester is prompted to complete an additional questionnaire.
- Delegated Consulting Agreement or Supplier Agreement Requiring Signature – A requisition where the supplier needs to sign a consulting agreement, the supplier has a software license, or other agreements requiring signature are necessary.
- Spend Category – A spend category categorizes spend on a transaction.
- Supplier – A supplier is a business entity that provides goods or services.
- Source Goods / Services - In Workday, sourcing goods / services is the business process task for moving the requisition to a purchase order. Central procurement is involved in this business process.
Applications (Apps)
- Maryland Procurement and AP – This application is a “one-stop-shop” for requesting goods and services, tracking expenses, and managing procurement cards (if you’re a P-Card Holder).
Tasks
- Connect to Supplier Website – All employees use this task to request goods or services from Shell Shop.
Reports
- My Requisitions – Employees who are initiators to requisitions can access this report to track the progress of their requisitions or edit in-progress requisitions.
- Find Purchase Orders for My Organization – This report allows Cost Center Procurement Reviewers and Driver Worktag Managers to view all of the requisitions for their organization.
Step-by-Step Instructions
View Requisitions for Goods and Services Job AidsProcess Workflow Diagrams
Locate the Create Requisition workflow in the Procure to Pay process diagrams
Finding Information
View Finance ReportsOn-Demand Courses
View Requisitions for Goods and Services On-Demand CoursesWhat's Changing?
View Requisitions for Goods and Services Key ChangesSecurity Roles
View Finance Security RolesFrequently Asked Questions
View Requisitions for Goods and Services Frequently Asked QuestionsCreate a Request
View Misc. Procurement and Purchasing RequestsAsk a Question or Request Assistance
Open a Case with Procurement
Procurement
The procure-to-pay process begins in Workday when a requisition (a request for goods or services) is created and submitted for approval. Typically, requisitions are initiated by a campus unit user. Once submitted in Workday, requisitions route for approval, which may include review by central procurement. Approval routing in Workday is based on worktags and other configured criteria. An approved requisition creates a financial commitment and becomes a purchase order (PO) or supplier contract. POs and contracts are issued to suppliers and generate financial obligations.
Terminology
- Catalog Requisition – Catalog requisitions are requisitions associated with Shell Shop punchouts.
- Non-Catalog Requisition – Non-catalog requisitions are requisitions not associated with Shell Shop.
- Supplier – A supplier is a business entity who provides goods or services.
- Supplier Contract – A supplier contract is an agreement with a supplier for goods and services at discounted rates.
- Change Order - Change Orders are used to request changes to an approved purchase order. Change orders for Shell Shop orders are typically for internal changes.
- Spend Category – A spend category categorizes spend on a transaction.
Applications (Apps)
- Maryland Procurement and AP – This app is a “one-stop-shop” for requesting goods and services, tracking expenses, and managing procurement cards (if you’re a P-Card Holder).
Tasks
- Create Change Order – A change order is a request to update an existing purchase order that has already been issued.
- Review Change Order – The Driver Worktag Manager reviews and makes updates to the Change Order if needed, then approves.
- Close a Purchase Order Line – Driver Worktag Managers and Cost Center Procurement Reviewers use this business process when some lines on a purchase order have been fully invoiced but other lines are still outstanding. If for any reason you make a mistake in closing a purchase order, contact central procurement.
- Close Purchase Order – Closing a purchase order zeros out any remaining balance and release those funds in the Obligation Ledger. Closing a purchase order also blocks additional invoices from being entered against it.
- Create Receipt – The receipt of goods and services is acknowledged through the Create Receipt task, serving as verification of the order and indicating the quantity ready to be invoiced. Receipts allow the associated invoices to be matched and routed for further processing.
- Adjust Receipt – Users can use the Create Receipt Adjustment task from the related actions menu of a receipt to correct or adjust the receipt.
- Create Return – Creating a return in Workday is an internal process for record-keeping. This means the user still needs to communicate the return directly with the supplier (contact customer service).
- Create Supplier Contract Amendment – Users can request updates to supplier contracts based on contract changes, extensions, renewals, or terminations.
Reports
- My Requisitions – This report allows initiators to track the progress of their requisitions or edit in-progress requisitions.
- Purchases for My Awards – This report displays POs for awards where the user has a role on the award header.
- Find Purchase Orders (RPT256) – This report allows you to find purchase orders based on selectable criteria.
Step-by-Step Instructions
View Procurement Job AidsProcess Workflow Diagrams
View Procure to Pay WorkflowsProcess Workflow Diagrams
View Change Orders WorkflowsFinding Information
View Finance ReportsOn-Demand Courses
View Procurement and Purchasing On-Demand CoursesWhat's Changing?
View Procurement and Purchasing Key ChangesSecurity Roles
View Finance Security RolesFrequently Asked Questions
View Procurement and Purchasing Frequently Asked QuestionsCreate a Request
View Misc. Procurement and Purchasing RequestsAsk a Question or Request Assistance
Open a Case with Procurement
Procurement Cards
A procurement card is used to make small-dollar purchases of goods or services up to $5K for business purposes. The Workday interface is designed to be self-service and designated users can complete verifications on behalf of others. Transactions are loaded daily from the bank and includes the cardholder’s default driver worktag. Item detail information is included on verification when provided by the supplier. At the end of the statement period, when all charges are reconciled, the cardholder and the departmental credit card transaction manager review the Workday transaction log and reconcile against the statement provided by the bank
Terminology
- Credit Card Merchant – A credit card merchant is a business entity related to a credit card transaction that provides goods or services.
- Level III Data – Level III Data are specific line item details for a p-card transaction provided by the merchant via the bank file. Level III Data includes information such as the Line Item Description, Quantity, and Unit Cost for a transaction.
- Procurement Card Verification – A procurement card verification refers to p-card transaction data that is assigned accounting details to a credit card charge.
- Verification of Procurement Card Transactions – The process of assigning accounting details to a credit card charge is referred to as the verification of procurement card transactions in Workday.
- Spend Category – A spend category is an identifier that categorizes spend on a transaction.
Applications (Apps)
- Maryland Procurement and AP – This app is a “one-stop-shop” for requesting goods and services, tracking expenses, and managing procurement cards (if you’re a P-Card Holder).
Tasks
- Create Request – The P-Card Request Form allows users to select between the following three request pathways: New Cardholder Form, P-Card Maintenance Form, Suspension/Cancellation Form.
- Procurement Card Transaction Verification – The Verify Procurement Card (P-Card) Transactions functionality in Workday is used to review, process, and reconcile p-card transactions made on behalf of your institution.
- Upload P-Card Statement – P-Card reconciliation activities occur in Workday. Cardholders must upload p-card statements on a monthly basis, usually at the end of a billing cycle. Follow your institution’s guidelines.
Reports
- My Procurement Card Transactions – This report allows cardholders to view transactions associated with their procurement card.
- My Procurement Card Transaction Verifications – This report allows cardholders to view verifications associated with their procurement card.
- RPT767 Monthly Procurement Card Log – This report allows cardholders to view every transaction associated with their card, and particularly can view a billing cycle by entering the associated billing cycle dates.
This table includes the relevant course(s). You can enroll in courses at any time on the On-Demand Courses page.
| Course Title | Description |
|---|---|
| Procurement Cards (P-Cards) in Workday | This course helps you learn how to request a procurement card (P-Card) or maintenance for an existing P-Card, verify P-Card transactions, and upload P-Card statements. |
Can additional information/attachments be added at any point?
Attachments are to be added as part of the verification process. The Elevate team will work with Procurement to determine the process for supporting documentation received after the cycle deadline.
Is there a cut off time to upload receipts into Workday?
Yes, transactions must be verified with supporting documentation by the deadlines established by the Procurement Card Administration. While the system will change, the rules associated with the program and deadlines will remain the same. At minimum, Workday will notify cardholders when they have new transactions to review and when the monthly deadline approaches.
Does the Comptroller's office have access to see all the receipts for reporting for grants or other reports?
Yes, individuals who have access to view financial transactions for a particular funding source can see the associated receipts.
Can you change the quantity and unit cost?
If Level III data (i.e. line item data) has been provided by the bank, users are required to leave the data as is. If the quantity and unit cost aren't provided, they are not required, but can be added.
If Level III data shouldn’t be edited, should it be suppressed?
Level III data was included to provide the most detailed reporting data to campus as possible, mitigate fraud and provide meaningful information to reconcilers.
What if the Level III data is incorrect?
Level III data is the billing data from the bank and represents the exact amounts the University owes the issuing bank. As a result, there are not inconsistencies between the Level III data and the transaction level data currently being received. However, in cases of fraud, the Level III data may indicate an unauthorized charge. In cases of fraud, cardholders must work with Procurement Card Administration and the bank like they do now.
What happens if the attachment is blank or illegible?
The cardholder has the responsibility to make sure that the receipt is legible and capture the full information. The procurement card transaction manager for the department should validate that each attachment is legible.
Is the bank statement available in Workday?
No, the report pulls transactions sent by the bank. To view the bank statement, departments still receive hardcopies by mail and continue to have access to the bank’s online portal.
Do approvers need to approve the bank statement?
Yes, when reviewing the monthly log in Workday, the procurement card transaction manager should compare transactions to the statement provided by the bank.
What happens if someone doesn’t verify their transactions or someone doesn’t approve them in time?
Cardholders are alerted when they have outstanding draft verifications. Procurement Card Administration are able to identify cards not reconciled by the deadline and determine the appropriate course of action.
If you need to find a specific transaction you've approved or made in the past, is there a way to search for them or do you need to look through the verifications manually?
Cardholders and those able to view financial transactions for their department are able able to run filterable reports to lookup transactions or search by the verification ID.
How far back can you search? Is there a cutoff?
All transactions loaded in Workday from go live forward are searchable by users with appropriate security. In Workday, no financial data is purged.
Is there a reference number for each individual transaction?
Yes, Workday generates a unique and searchable transaction i.d. for each verification.
Can the memo line show on the financial / ledgers report?
Assuming they have appropriate security, users running financial reports are be able to drill into card verifications and other operational transactions to view details. Reports are still in development and the exact fields displayed are being determined.
Can you see charges that are pending verification that were made by another department or are you only able to see pending verifications that were made on your USource/Cost Center?
The population of transactions visible to a user depend on their security permissions. For example, cardholders can typically only view transactions associated with their card. Managers and procurement card transaction managers can view transactions associated with cardholders in the supervisory organizations they support.
Who do P-Card Transaction Verifications route to for approval?
After a cardholder submits their p-card transaction verification, it routes for approval to the cardholder's supervisory org Manager and the fiscal officer, known in Workday as the driver worktag manager (i.e. USource Manager, Grant Manager, Gift Manager, or Project Manager).
Does the approver just have one thing to approve daily, or do they still need to approve each individual transaction?
All of a cardholder’s transactions for a given day are on a single verification. This means there can be multiple transactions on a single verification.
If you go several days without verifying your transactions, does Workday combine the verifications?
All of a cardholder’s transactions for a given day are on a single verification. If there are transactions from multiple days, there are multiple verifications.
Supplier Contracts
Supplier Contracts are agreements between UMD institutions and a supplier (formerly “vendor” in KFS) which stipulate agreed-upon purchasing terms, goods and services unit pricing or discounts, or credit limits. In Workday, a variety of contract types will be utilized for suppliers beyond master contracts, including, but not limited to, dining operations, goods and services, facilities maintenance, and subawards.
Terminology
- Supplier – Formerly “Vendor” in KFS, a supplier is a business entity that provides goods or services to UMD institutions.
- Contract Lines – Contract lines serve to create financial obligations to the supplier. Contract lines are used to set purchasing terms on multiple goods or services under one agreement. They are also used to amend and renew multi-year agreements each term.
Master Contract versus Contract from Purchase Requisition
- Master contracts are derived from strategic procurement initiatives when a long-term relationship with a supplier is desirable.
- Multi-year contracts are derived from approved purchase requisitions for goods or services. The Buyer receives an approval task in Workday for the purchase requisition. This approval task serves as the trigger to create the multi-year supplier contract.
Tasks
- Create Supplier Contract – Buyers use this task to create new contracts. Master supplier contracts are created manually, while multi-year supplier contracts are created after a Buyer approves a purchase requisition.
- Assign Additional Data to Supplier Contract – After a new supplier contract is submitted, the Buyer must assign additional procurement data, such as diversity goals, Board of Public Works information, and an APO (automated purchase order) limit.
- Create Supplier Contract Amendment – Contract changes, extensions, renewals, and terminations are handled through the contract amendment process. Buyers should take note that departments will initiate contract amendment for non-master and dining operations contracts. In these cases, buyers will not rekey amendment data. They will receive an approval task to approve or send back the contract amendment.