SSB Finance for Purchasing Workshop 1

Workshop Agenda Online Documentation Purchasing Rules and Guidelines How to Avoid Common Errors When Entering Requisitions Creating New Vendors Process Entering Requisitions Review Approval Process Correcting Requisitions

Online Documentation How to access Online Documentation Log into NJIT Pipeline Select Faculty/Staff Services Click on Banner Documentation

Click Banner Finance Documentation

Quick Reference Guide

Quick Reference Guide…cont’d Need to print Req with updates – Save in process

Ship Codes

Purchasing Rules and Guidelines Access NJIT website www.njit.edu/purchasing

Purchasing Rules and Guidelines Expenses <15% of NJIT’s Bid Limit (currently $27,100) W-9 Expenses > 15% of NJIT’s bid Limit but less than $27,100 BRC – Business Registration Certificate Expenses > $27,100 up to $50,000 BRC Affirmative Action Paperwork Bid Sole Source State Contract Expenses > $50,000 but < $750,000 Presidents’ Signature Sheet Expenses > $750,000 Board of Trustees Approval W-9 BRC Affirmative Action Paperwork Bid Sole Source State Contract Presidents’ Signature Sheet OTHER: Certificate of Insurance MSDS – Material Safety Data Sheets

Purchasing Rules and Guidelines…cont’d Form W-9 (US ) or W-8 (Foreign) www.irs.gov Why does Purchasing require a W-9/W-8? A W-9/W-8 confirms the validity of the Business or Individual’s SSN or Tax Id. When does Purchasing require a W-9/W-8? To set up a new vendor in BANNER. *Contingent upon Vendor completing and submitting W-9/W-8 to the Purchasing Department.

Purchasing Rules and Guidelines…cont’d Business Registration Certificate (BRC) www.state.nj.us/treasury/revenue/revprnt.shtml NJ-REG (for Companies) REG-A (for Individuals) What is a BRC? This form is required by the State of NJ. There is no cost to the Vendor. *Contingent upon Vendor completing and submitting BRC to the State of NJ. It will take a minimum of 10-Business Days for the State to process.

Purchasing Rules and Guidelines…cont’d Affirmative Action Certificate http://www.state.nj.us/treasury/contract_compliance/ *Contingent upon Vendor completing and submitting Form to the State of NJ. It may take up to 4-Weeks for the State to process..

Purchasing Rules and Guidelines…cont’d Bids…Sole Source…State Contract Bids Process A public Bid can take up to 8-weeks after the department submits specifications to Purchasing. Sole Source Only pertains to unique products (i.e. equipment that has specific patent necessary to complete project). Shall be completed by requestor and evaluated by Purchasing; If approved by Purchasing public bidding is not necessary. State Contract Public bidding is not necessary if product is available on State Contract. Purchasing will assist you in determining if product is available on State Contract.

Purchasing Rules and Guidelines…cont’d Presidents’ Signature Sheet Required for purchases over $50k. Requested by the area Dean and submitted to Purchasing. Board of Trustees Approval Required for purchases over $750k. Requested by the department.

Purchasing Rules and Guidelines…cont’d Other Documentation Certificate of Insurance Bus Companies, Consultants, Contractors… Material Safety Data Sheet (MSDS) Hazardous materials shall be submitted to Dr. Van Houten, Director of Health & Safety. Consultant Contract All consultants must have a contract on file detailing the scope of work to be provided.

Common Errors When Entering Requisitions Comments are strictly used for Purchase Order Dispositions such as… FX + fax # EM complete Vendor E-mail field HD or DM (purchase order will not be sent to vendor) If Comments field is left blank, purchase order will be mailed to vendor

Common Errors When Entering Requisitions…cont’d Document Text vs. Item Text Document Text Document Text should be used when the Text pertains to the entire Purchase Order. If you prefer the text to appear on your purchase order use the “document text print box.” Item Text Should be used for text that is specific to the item being purchased (i.e. if you run out of space and need to continue with your description).

Common Errors When Entering Requisitions…cont’d Error Message Solution Enter the Ship Code in the header of your requisition (i.e. NJ01) Enter the percentage distribution in the Accounting column for the requisition. Located after the Calculated Commodity Amounts table. Enter the Commodity Description for line 1. Enter your Organization in the header section of your requisition. Enter the Quantity for line 1. You do not need to use a decimal point. Enter the dollar amount distribution in the Accounting column for the requisition. Located after the Calculated Commodity Amounts table. Enter the Chart number for the index you are using. If the requisition is missing information you will receive an error message(s) at the top of the requisition form. You must fix all error messages before document will validate.

Common Errors When Entering Requisitions…cont’d Common errors that may delay processing your requisition Missing quote # Missing shipping costs Missing Item #’s Incomplete description Missing Vendor or Contact Information Incorrect Account Code Missing verbage indicating the location of the consultant contract Missing Communications Approval

Creating New Vendor Process How do I know my Vendor does not exist in BANNER? Step 1…Did you use Code Lookup? If you answered Yes and found Vendor BUT the address did not match go to Step 2. If you answered Yes but still could not find Vendor go to Step 3. Step 2…Change either PO Type or Sequence to find correct address. If still unable to locate then manually enter the Vendor address in Document Text (no print). Purchasing will create a new address sequence. Step 3…Enter complete Vendor information (i.e. vendor name, address, phone, fax, etc.). This must be entered in Document Text (no print).

Entering Requisitions Refer to SSB Training Guide for complete details. Questions and Answers

Review Approval Process Why isn’t my Requisition converted? Have you checked if any approvals are missing? How do I do that? First make sure that you are logged into the NJIT Pipeline. Follow these simple steps to check if your Requisition has been fully approved. Step 1…Click on Finance tab Step 2…Click on View Document Step 3…Choose type: Requisition Step 4…Enter Requisition # in Document Number field Step 5…Click on Approval History

Review Approval Process

Review Approval Process

Review Approval Process As you can see this screen shows you “Approvals required” and “Approvals recorded” Although each approval level shows multiple approvers, only one of the approvers from the list needs to approve each level.

Review Approval Process

Review Approval Process How do I know when my requisition is fully approved? There are two ways to check if your Requisition has been fully approved: You can follow the steps on the previous slides and instead of clicking on Approval History you would click on View Document (approved Y means Req has been fully approved) You can follow the steps on the previous slides, if there are no Approvals Required then your req is fully approved. Any questions?

Requisition Approval Process Lisa We need to replace the Department approvals with the one from my notes ($’s are incorrect on the slide). Lisa you were going to let Conrad know that his limit for the Pres. is incorrect. Ed suggested that we put the approvals in numbered sequence as they apprear: 1: Dave Ullman - Computer Services (if applicable) 2: Sunil Patel - Fixed Assets if applicable) 3: General Accounting or Grants (depending on source of funds) Etc….. 29

Approve Requisitions Requisitions: Is this type of purchase allowed and consistent with the mission of the Department as well as University Policies? Once the final approval level is satisfied the requisition will be reviewed by the Purchasing Department. If purchasing and university guidelines are met then requisition will be converted to a purchase order. Sharyn In the requisition area can we refer them to the Purchasing Guidelines page. Please make a slide with the guidelines to show up at the beginning of the Purchasing training (as per Ed). -- added let me know if the wording is ok Tracy You will need to add verbage on what is needed to “hold check for p/u” 30

Commonly Asked Questions How do I find the Account Code? You may access it via online under the Account Definitions. As a last resort you may contact General Accounting. If I have a question about the item detail on a Requisition, who do I contact? Purchasing!  Who do I contact regarding Invoices? Accounts Payable Who do I contact if I have question on a Grant Requisition? Your Grant Account Manager

How to Correct Requisitions How do I correct my Requisition? Before you complete your Requisition make sure that you avoid Common Errors. What if I complete my Requisition and I need to make a correction? You can “Dissapprove” your requsition and retrieve it by going to “in process documents”. You can then make all necessary changes. Hint: Remember to save your changes and click“Complete” (do not click on “validate”) What if my Requisition has been completed and approved? Purchasing can delete the Requisition and you will need to start over… Note: Do not use (“) in your requisition.

How to Correct Requisitions…cont’d Commonly asked questions… In order for your Requisition to be corrected you the requestor must first Disapprove the Requisition. How do I do that? Follow same procedure as “approving” document, however, you would “disapprove” the Requisition (initiator can disapprove Requisition).

Summary To look up information on the requisition form use the code lookup at the bottom on the screen and use wildcards % where applicable. Once a requisition is completed the Requisition number will appear at the top of the screen and will then be forwarded to the approval process. There are two types of Purchase Orders in Banner a Regular and a Standing Order. These are assigned by the purchasing department. Remember NOT to exceed the dollar amount on a Standing Order. To approve/disapprove requisitions in Banner you will use the approve documents function. To access information on a specific document use the view documents item from the menu. Avoid “cutting” and “pasting” this may create a problem with the text on your req. Lisa We need to replace the Department approvals with the one from my notes ($’s are incorrect on the slide). Lisa you were going to let Conrad know that his limit for the Pres. is incorrect. Ed suggested that we put the approvals in numbered sequence as they apprear: 1: Dave Ullman - Computer Services (if applicable) 2: Sunil Patel - Fixed Assets if applicable) 3: General Accounting or Grants (depending on source of funds) Etc….. 34