Understanding Requisitions
This section lists prerequisites and discusses:
Requisitions
Multicurrency requisitions
Before you enter requisitions into the system, you must:
Have authorization to process requisitions on the Requisition Authorizations of the Procurement User Preferences page.
Identify the user ID as a requester on the Requester Setup page, where you add defaults for requisitions.
Have a role action of SP_REQUESTER.
Requesters can use PeopleSoft Services Procurement to create and maintain service requisitions. After you enter and submit a requisition, send it to the approver for approval. Approved requisitions are then sourced to qualified suppliers that meet the requisition requirements. Use tools such as bid factors and supplier scores to rate the best candidates.
On the same requisition, you can add lines for service items using PeopleSoft Services Procurement and commodity items using PeopleSoft eProcurement.
Requisition Lines
A service requisition is made up of multiple lines. These lines can be either a mixture of resource and deliverable services or a single multi-resource service. Requesters can use PeopleSoft Services Procurement to create, edit, cancel, or extend requisition lines. Use PeopleSoft Purchasing to close services requisitions. Lines associated to a resource service method may be created for multiple positions.
Resource-Based Requisition Lines
Requisition lines for resource-based services enable you to request the services of an individual service provider. Upon awarding the requisition line to the supplier, the service coordinator or requester generates a services work order and memorializes the attributes as terms and conditions. Upon the work order release, the service provider may create timesheets to record hours worked.
Timesheet information subsequently triggers self billed invoicing functionality for payment to the supplier.
A resource based requisition line may have multiple positions, issue a single sourcing notification to suppliers, and create work orders for each position. The Service Coordinator can fill the requisition line with multiple bids, up the total position quantity. Position information appears on the requisition, approval, sourcing, and bid pages so the requester, service coordinator, and service provider contact can track how many positions are filled or available, as well as obtain average fill rates and amounts for the requisition line.
You can reduce the number of positions on a requisition line that is not already filled. The requester can perform this action as long as the line is not sourced. After sourcing, only the service coordinator can perform this action.
Note: You cannot reduce the number of positions under the number of positions that are already filled. If the number of positions is reduced to equal the number of positions that are already filled, the requisition line status is changed to Filled and an email notification is sent to all sourced suppliers having a notification method of email and worklist.
Deliverable-Based Requisition Lines
Deliverables-based requisition lines reflect requirements generally performed by an entire work force, such as a requisition for an entire project, not just the hours worked by a single service provider. There is no specific service provider in mind for the deliverables-based requisitions, so a statement of work defines the requirements.
Note: Although no specific service provider is assigned initially, it is possible to track individuals on the related work order for security purposes.
You can define a deliverables-based requisition with its unique attributes. These attributes carry over into the sourcing event to analyze and score supplier submittals in accord with the requisition requirements. Upon awarding the requisition line to the supplier, the service coordinator or requester generates a services work order and memorializes these attributes as terms and conditions. Upon the work order release, the service provider contact records progress against a progress log, and you pay the supplier based on milestones, percentages, a fixed amount, or rates.
For example, suppose that you have a percentage-based requisition, and the service provider contact reports the percentage complete against a progress log and you pay the supplier for that percentage of work. Or, you could list project milestones and pay the service provider an agreed upon amount when each milestone is completed.
The progress log becomes the basis of the self-billed invoicing functionality for payment to the supplier.
Multi-Resource Requisition Lines
Multi-resource requisition lines support multiple unique services and service providers for PeopleSoft Services Procurement requisitions. Multi-resource services are services provided for an overall agreed upon amount. The overall agreed upon amount for a service or set of services is independent of the number of service providers associated to the service.
When you select the Multi-Resource service method, the system displays a page that is similar to deliverables-based requisitions, where you can define the multi-resource service top line overall amount for labor and expense. Multi-resource services supports multiple unique services and service providers for requisitions, sourcing, and work orders. Multi-resource services enable you to manage complex services at a granular level.
Each requisition is limited to only one multi-resource requisition service, and when a multi-resource service is selected, then no other service lines are allowed on the requisition. The system bases default values for multi-resource services on the multi-resource service type and service, and it populates the requisition fields with the default values. Any related individual services that were defined as default values for the specified multi-resource service will be used as default values. You can use the Add Service button to add more related individual services. The system does not enable multi-resource services on the resource-based, deliverables-based, or goods requisition.
Deliverables-based and multi-resource services have the same bid factor mapping. Default values also exist for multi-resource service attributes, including the skills matrix. The system performs supplier-managed services and managed-services provider calculations, expense calculations, and rate access logic for the multi-resource service.
Fiscal approval for multi-resource services is based on the top-line, overall not to exceed amounts and not on the individual service level. Requisition line-level information includes service method, service type, service, requesting department, location, request type, scope of work, duration information, labor and expense amounts, accounting distribution information, supplier information, and service coordinator information.
You can add multiple unique individual services under a multi-resource requisition line. For each individual service related to a multi-resource requisition line, you can include service type, service, labor rate and unit of measure, title, start date, end date, expense rate and unit of measure, quantity, location, utilization, competencies, education level, experience, telecommute, travel required, travel frequency, scoring criteria, and whether an interview is required.
For more information about preparing the PeopleSoft Services Procurement system for use with multi-resource services, see the "Setting Up Application Specific Options for PeopleSoft Services Procurement" set of topics.
Requisition Line Cancellation
Requesters can cancel individual or multiple requisition lines. When a requester cancels a requisition, the system automatically sends cancellation notifications to all affected parties, including all sourced suppliers.
Depending on the business unit settings, reason codes may be required when canceling a line.
Note: If all requisition lines are canceled, the requisition header status is automatically set to Canceled. Affected budget distribution amounts are immediately adjusted to reflect canceled amounts.
Note: If a work order is already created for a requisition line, the line cannot be canceled.
Services Requisition Closure
Use PeopleSoft Purchasing to close Services Procurement requisitions.
Supplier Rate Breakdown and Resource Requisitions
When you create a service requisition, depending on the business unit settings, the requester may or may not have the authority to enter a bill rate, which is the rate paid to the supplier. If they do have the authority to enter a rate, the installation options setting for Pay Types Enabled and the role actions of the requester will determine whether they enter only a total rate or the individual components of that rate. When pay types are enabled, the suppliers enter as many as four types of pay rates when they bid on the requisition line: the service provider pay rate, any additional incurred costs, and standard and third-party markup rates, if applicable. The sum of these rates is the bid rate. This functionality enables service coordinators to track the rate breakdown and set limits on the supplier markup rates.
After you fill a service requisition with the negotiated bill rate, the system generates a work order that shows the rate breakdown. You cannot edit the rates if the work order is linked to a requisition, although you can enter new effective-dated rates after the work order is released.
Rate Sheet Breakdown for Rates and Expenses
You can define default rates and expenses for contingent labor on the rate sheet. The rate breakdown structure on the rate sheet includes pay rate, supplier markup, third-party markup, fixed costs, and expenses. The rate breakdown that you define prepopulates requisitions and work orders based on the related region and service type. You can define minimum, maximum, and target levels on the rate sheet for each of the rate elements, including expenses. Tolerance checking on the requisition validates pay rate, total rate, and expenses at the beginning to help companies ensure compliance with negotiated or standardized rates. In this way, services costs are closely monitored.
If a requester has access to view the rate breakdown information on the requisition, all rates will be visible to that requester. The requester may also have the ability to edit the requisition rate, depending on the business unit settings. However, if the requester has a role action to hide the rate breakdown information, he will not be able to view rate breakdown information.
In addition to configuring the system to show or hide rates for a requester, you can also configure the system to enable service coordinators to define the rate information for a requisition line or manual work order before it is submitted for approval.
Post Approval Edits to Requisitions
If a requisition line is not yet sourced, you can change it. All fields are available for edit. Changes can trigger another approval, depending on how the change tracking setup is defined. If so, the system sets the requisition status back to Pending. The service coordinator or team cannot source the requisition until it is successfully approved again unless the business unit allows pre-approval sourcing. In that situation, you can source the requisition as soon as it is submitted for approval. The sourcing worklist entries remain in the worklist throughout each approval process and are replaced by new worklist entries upon approval. If the requisition is denied, then the original worklist entries remain until the requisition is either resubmitted and approved or canceled.
Requisition Extensions
Requesters can extend completed service requisition lines. If you need to extend a requisition, you must go to the latest extension of the requisition to extend it further. When you extend from the requisition, the system creates a new Requisition ID and line by transferring the requester to the Create Services requisition page.
The system populates values from the original requisition to the new requisition line as a default. The start date of the new requisition is equal to the end date of original requisition plus one day. The status of the new requisition is pending approval. Once the requisition is approved, you can source the extended requisition to the supplier for confirmation of availability and rates.
The new requisition references the Requisition ID and line number of the original requisition line. The system also marks the original requisition as extended. You can edit the reference, request type, department, time approver, end date, rate, and service coordinator/team of the new requisition. The remaining fields are not editable.
Note: Currency conversion calculations are based on the date that the requisition was extended.
Note: If you extend a requisition, you cannot extend the associated work order directly. You must perform subsequent extensions from the extended requisition. Likewise, if the work order related to a requisition line has already been extended, then you cannot extend it further from the requisition.
If the purchasing business unit has multicurrency enabled for requisitions, the requester can change the currency on the service requisition. Rate sheet validation can occur in either the requisition currency or the base currency. After the requisition is approved and sourced, suppliers enter bids in the requisition currency, but they can see amounts in their location currency, which can be different than the requisition currency.
With multicurrency, you can:
Support global customers by enabling services procurement transaction processes to occur in multiple currencies.
Enable rate sheet validation to occur in the requisition base currency or the transaction currency.
Enable users to create expense sheets in a currency different from the requisition currency.
Create invoices in the supplier location currency, even if it is different from the requisition currency.
If multicurrency requisitions are enabled, the requester's currency appears by default. The requester can change this currency until the requisition is submitted for approval. Each requisition line that you add for the same requisition header must use the same currency.
If multicurrency requisitions are disabled, the purchasing business unit currency is used and cannot be changed.
The system calculates the base currency equivalent for the requisition line. The currency conversion exchange rate is based on the rate type that you define for the selected business unit. The rate type and rate date for currency conversion is stored. The rate type that is defined in the PeopleSoft Purchasing business unit definition is the default rate type. The effective rate date is the date when the requisition will be submitted for approval.