Kuali Financial System

Requisition Document Help

Restricted Access

KFS Purchasing Training is required before creation access is granted to the Requisition document. The document will NOT appear on your KFS Main Menu until completion of your training has been recorded.

Purpose

The Requisition is used to document the purchase of goods and repairs and services from outside vendors (both those that require and do not require approval of Purchasing). The Requisition is NOT a Purchase Order but it is used to generate a Purchase Order once the appropriate approvals have been secured.

Depending on the dollar amount and type of purchase, an Automatic Purchase Order (APO) or a Purchase Order (PO) created by Purchasing will be created. Check the Routing Log towards the bottom of each document any time you want to see where a document is in the routing cycle. The initiator of the KFS Requisition will receive a copy of the APO or PO in their KFS Action List once the document has been finalized.

If a combination of items is ordered on a Requisition, the routing for the item with the strictest restrictions will apply.

KFS Purchase Orders are automatically closed by KFS when there are no remaining liens. In other words, if a final payment is made against a PO, the order will be automatically closed that night.

When does a Requisition route to Contracting Services (Purchasing)?

If any of the below conditions are TRUE, your Requisition will route to Contracting Services for review and order placement by a buyer.  The buyer in Contracting Services will create the Purchase Order

  • The total is greater than the APO (Automatic Purchase Order) limit ($5000 and higher for most departments) and the Commodity Code is not flagged as Published Material
  • The Items tab contains an item that the Requisition initiator checked as Restricted (unless citing an Agreement # that cites the Commodity Code referenced on the Agreement's Restricted Commodity Code tab)
  • One or more Commodity Codes are flagged as Restricted
  • The selected vendor is marked as Restricted
  • The vendor was NOT selected from the vendor database (vendor information was manually entered by Requisition initiator)
  • The 'PO Total Cannot Exceed' amount has been entered (in the Additional Institutional Info tab) and the Order Type is not Repair)
  • The Requisition contains entries in the Additional Suggested Vendor Names tab
  • The Requisition contains an entry in the Additional Charges, Trade In section
  • The Requisition contains an entry in the Additional Charges, Full Order Discount section
  • The Requisition contains an entry in the Capital Asset section,  which is not identified as a Fabrication in the Items tab
  • The Vendor selected is flagged as an Employee
  • The Vendor selected is flagged as an Individual

Processing Purchases and Payments Against Purchase Agreements (Campuswide and Department-Specific)

The Requisition is used to issue purchases against established agreements, NOT to create new ones or modify existing ones. The Purchase Agreement document is used to create and/or modify agreements.

  1. In the Vendor tab on the Requisition document, click on the Agreement Number lookup icon to do a search for agreement and return agreement information to REQS. Vendor information will return to the document. (NOTE: The Purchase Agreement search, available from the Lookups section of the Purchasing section of the KFS Main Menu is often the BEST place to get details on an agreement. This particular lookup gives you many more search fields and details on which to search agreements.)
  2. Complete the other required fields, identified with an asterisk.
  3. As long as the dollar amount allocated for an Automatic Purchase Order (APO) is not exceeded, an APO will be created. A copy will be sent to the REQS initiator in their KFS Action List.
    • NOTE: Some departments create a Requisition each time they need to make a payment (encumber just the funds for that specific payment) and some departments create a Requisition for the entire amount of the agreement (encumber entire amount), and then make partial payments off of that one agreement. The decision is left up to departments on which approach works best for them.
  4. On the KFS Main Menu, click on Payment Request to process a payment against the APO.

The remaining amount on the agreement is updated nightly based on all approved POs issued against that agreement that business day.

If you are working with a department agreement (not one set up for the entire campus) and you need to extend the agreement or change the amount, an amendment will need to be processed against the Purchase Agreement.

Requisition Detail Section

Requisition Details

The Requisition Detail section identifies the organization for which the Requisition is being created.  This is also the section where you identify if the Request is for a Repair Order in the Request Type field.  When completing the Requisition Detail section,  there are two questions regarding the work to be performed:

  • Will any work be performed in the US?
  • Will any work be performed in California?

These questions are on the Requisition for tax reporting purposes. The answers to each of these questions defaults to N/A (Not Applicable).   In most cases, the answers can be left as N/A UNLESS you are purchasing services (not goods) from a foreign or out of state vendor.  When procuring services from a foreign or out of state vendor, answers should be provided to each question. The answers to these questions will help ensure that the University is meeting its tax reporting and withholding obligations.

Delivery Section

Delivery Tab

The Delivery tab is used to identify where the requested goods or services are to be delivered/performed. There are three ways that this can be done.

  • Building Lookup: Click on the lookup icon next to the Building field to access the Building Lookup. This lookup includes codes for university-owned buildings on the Davis and Sacramento (UCDMC) campuses. This lookup also contains codes for many university-leased buildings in other locations outside of Davis and Sacramento. Using this lookup will return the applicable street address, city, state, and postal code to the main screen of the document. When using this option, you can click the Set as Default Building button, and the subsequent REQS will default this building as the "default" delivery location (but you can still change it at any time).
    • The Room field will also be searchable when using the Building Lookup option. Click on the lookup icon to access the Room Lookup screen. Click on the Search button to see all rooms assigned to the building you have selected.

    If you cannot find the building you are looking for with the Building Lookup, one of the other options below will work.

  • Enter Address: Click the Enter Address button and the address, city, state, postal code, and country information can be manually entered. This option works well when you wish to enter a delivery location for which a building code does not exist.
  • Use Org Address: Click the Use Org Address button to return the default shipping address information assigned on the Organization document for the organization specified in the Document Overview tab (Requisition Detail, Chart/Org fields). If the default shipping address for the Organization needs to be updated, an Organization document should be processed in KFS.

The Delivery To field defaults the name of the initiator, but you can override this information. The easiest way to do this is to click the lookup icon to access the Person Lookup. This table allows you to search for the employee for whom the delivery should be made. When you locate the employee, click on the Return Value link to return the full name of the employee, along with the Phone Number and Email (as long as this information is on file for the employee in the campus directory).

Vendor Information Section

Vendor Information Section

The Vendor Information section is used to identify the vendor to which the eventual Purchase Order may be placed.  Click on the lookup icon next to the Suggested Vendor field to locate the vendor; the information on file for that vendor will default in the various fields in this section.  For Requisitions that become Automatic Purchase Orders (within the department's delegation), the selected vendor will be the one used; for Requisitions that route to Contracting Services, the selected vendor may or may not be used.  Refer to the help guide on the Contracting Services website if you are unable to locate the vendor or if you need to update information on the vendor (e.g., address).

Items Section

Items

In the Item Type field:

  • Qty option should be used if the Quantity and UOM (Unit of Measure) fields will be completed (e.g., a purchase for 12 each textbooks or 3.5 hours of research time). The No Qty option should be used if the purchase is not measured by quantity (e.g., an order for a cleaning service where the amount of time is not known). If the No Qty option is selected, the Quantity and UOM fields are NOT allowed and cannot be completed. In most cases the selected Commodity Code on the Requisition will drive the taxability, so you should not select the nontaxable options (unless you are selecting a taxable commodity code that should not be taxed for your particular purchase).
  • If Qty option is selected AND the purchase is for capital equipment (at or above $5000) OR if the total of the Requisition exceeds $10,000, the Line Item Receiving document is required before the Payment Request can be processed against the resulting Purchase Order. If the No Qty option is selected, the Line Item Receiving document cannot be used.
  • If Qty is selected, once the amount is fully indicated on the Payment Request, the Purchase Order is automatically closed. For example, if you process a Requisition for 3 gallons of milk, and you indicate the payment of 3 gallons of milk on the Payment Request document, the Purchase Order for the 3 gallons of milk will be automatically closed. If No Qty is selected, the Purchase Order will automatically close only when the amount has been fully paid.

The use of 1 Lot in the Quantity and Unit of Measure fields is discouraged unless the department is certain that only one payment will be made. Otherwise, you should specify the quantity and amount, or use one of the No Qty Item Type options (as described above) to allow multiple payments when a quantity cannot be specified for any reason.

Users should only choose the nontaxable options when they are purchasing commodities which are normally taxable, but due to extenuating circumstances the items should be tax-exempt. The usual example of this is when the department holds a tax exempt certificate for specific goods. As a reminder, the UC is not a tax-exempt organization for general purchases. Commodity Codes are already predefined as taxable and nontaxable for general purchases. In most cases, if a vendor is not charging Sales tax for a commodity, it is because the UC will accrue Use tax. Selecting one of the nontaxable options is not correct in these cases.

NOTE: If the Purchase Order was set up for Use tax, but the vendor charged Sales tax, users can change the Use Tax Indicator on the Payment Request without making a PO amendment. The opposite is true as well; if the Purchase Order was set up for Sales tax, but the vendor does not collect it, you can make the corresponding change on the Payment Request document.

There aren't "separate" commodity codes for equipment versus non-equipment items. KFS will automatically identify capital equipment items based on the pre-tax amount (at or above $5000) entered on Item lines.

If processing the Requisition document for a repair, the following commodity codes should be used:

  • REPAIR01: Repair order service or labor
  • REPAIR02: Repair order parts and materials

If purchasing capital equipment (stand-alone items at or above $5K) on a Requisition, make sure that the appropriate equipment Object code is properly reflected in the Accounting Lines of the  Additional Charges section.   (By default, the Object code in the Additional Charges section is either 8000 or 3000 (for the Shipping lines)).

  • Additional charges/discounts associated with a capital equipment purchase should have Object code 9000 entered. 
  • Purchases of items for an equipment fabrication should have Object code 9600 entered in the Additional Charges section.

Entering the appropriate Object code will ensure that any associated charges with the equipment purchase are properly recorded.

Each of the line items on your Requisition should have a cost at or greater than $.01.  If the vendor will be providing items at no cost ($0.00), please do not enter these as individual line items on the Requisition, or you will receive a system error when attempting to process a Payment Request document against the resulting Purchase Order.  We recommend adding a note to the Requisition documenting the items that the vendor will be providing to you free of charge.

Procuring services can be a very different process from procuring goods. There are usually different requirements for supporting documentation and other pieces of information needed by Contracting Services. See the Contracting Services website for more information.

The Items section also contains a question "Equipment used in CA for research is more than 50% of the time for the next year?"  Learn more about this option and when it should be selected by visiting the Tax Reporting & Compliance website.

If you will be trading in a piece of equipment as part of your Requisition, be sure to check the Assigned to Trade In box for the item for which the trade-in will be applied.  Then, in the Addtional Charges section, in the Trade In section, enter the UCOP Tag Number of the item being traded-in, and the amount of the trade-in discount as a negative dollar amount.  Please note that the trade-in should not occur until approval has been secured from Equipment Management.

Accounting Lines Section

Accounting Lines

The Accounting Lines section in the Items section identifies the account(s) to be charged for the purchase.  When entering an account, enter EITHER Percent or Dollar Amount (not both). And, use the Setup Distribution button in the Items section whenever possible to expedite the processing of applying the same account line to multiple items. This functionality applies to the Items and the Additional Charges section, too.

Capital Asset Section

Capital Asset Section

The Capital Asset section is used to identify the Type of Equipment, Manufacturer, Model, Custodial Code, Building, and Room Number information for any capital assets being purchased (stand-alone items $5000 and above).  This section can ONLY be completed if capital assets are indicated in the Items section of the Requisition.

If the item should not be classified as new moveable equipment because either:

  1. The purchase is for a repair or replacement part
  2. The purchase is for fixed equipment that will be permanently installed into a building

You should complete the Capital Asset tab using the instructions for completing a Requisition for Non-Equipment.

Billing Info Section

Billing Information

The Billing Info tab displays the billing information assigned to that organization on the Organization document.  You can change this information directly on the REQS document.  Or, if you wish to change the default information, you can do so on the Organization document. On the Main Menu in KFS, search for your organization in the Organization document, and then change the billing information in the Edit Purchasing/Accounts Payable Info section of the document.  After the Organization document is fully approved, future Requisitions citing that organization will reflect the updated billing information.

Price Source Section

Price Source

The Price Source section is used to identify the source of the price indicated on the Requisition.

Notes and Attachments Section

Notes and Attachments

Any supporting attachments (price quotes, blueprints, etc.) should be added directly to the document in the Notes and Attachments tab. PDF versions are recommended. If you must send a hard copy of supporting documentation, you will be required to check the Hardcopy attachments included with requisition? field in the Requisition Details section and add a reason in the Justification for not scanning attachments field.

Printing Purchase Orders (POs)

Once a Purchase Order (PO) is created (either automatically for those Requisitions that do not require Contracting Services department approval or by a buyer in Contracting Services), the Purchase Order (PO) can be printed.

In order to print a Purchase Order (PO), a KFS user must have the “Purchasing User” role.  In other words, if you can create a Requisition (REQS), you can print (any) PO. 

The Print button will display at the bottom of a fully approved (status OPEN) Purchase Order when the following are true:

  • PO must be in Open status
  • PO must be the current version (ie, not the original if its been amended, etc)
  • PO must not have any pending change in progress (ie, an Amendment in routing, not fully approved yet)

A Re-Print button will display when the first print of the PO has already been done. For POs created by Contracting Services, the buyer will print the original copy.

In some cases, a Print button may not appear when it should on the PO document.  In these cases, we recommend that the person listed as the PO initiator ad hoc route the PO document to themselves.  If they then go to their Action List and retrieve the PO there, the Print button will appear.

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