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Workday Purchasing Fixes #1

February 27, 2018

Workday Procure-to-Pay Challenges
As many of you have discovered (the hard way) there have been a number of “unintended consequences” resulting from how requisitions, purchase orders, receipts, and invoices are processed. As these unintended consequences are recognized, fixes or work-arounds are being developed, both at the NSHE and Workday levels. But these fixes are going to take time, and in the meantime we need to continue to do our work. In this and successive communication I hope to describe measures that BCN Purchasing is implementing that will help, or at least explain why we are doing things in a certain way.

The first issue is problems that are caused when requisitions are changed during the sourcing process. Up to now, when a problem with a requisition is uncovered, and the Buyer knows the solution, he/she fixes it-eliminates the problem. What we have discovered is that with Workday, almost any change to a requisition made during sourcing of the requisition will cause one or several consequences down the line that are almost impossible to fix. An example is if a Buyer adds a line item, the connection from the requisition to the purchase order is broken, resulting in the requisitioner not being able to create a receipt. Then people all up-n-down the processing stream have to spend hours fixing the problem. Unfortunately, until changes have been made in Workday the best solution (so as not to cause problems with creating receipts, inventory tags, etc.) is to close the requisition and the department must submit a new one. The buyer will alert you to the problem and let you know what needs to be changed and why. This process will take longer getting the requisition sourced correctly, but this time will be far less than the time spent trying to correct a problem on the back end.

A second issue, somewhat related, is how we process equipment purchases. We have been instructed that ALL requisitions for goods should be entered itemized to match the supplier’s quote. But when buying equipment, following that dictum frequently results in the equipment not being properly inventoried. The reason is that in Workday there is an inventory tag issued for each line item that meets the criteria. One simple example is a requisition submitted to buy one piece of equipment composed of three components; if the requisitioner copies the supplier’s quotation which has three components each on a separate line; and the purchase order, the receipt, and the invoice are all processed without changing anything, there will be three tags issued! This is an example of where a requisition should not be itemized to match the supplier’s quote. Buyers will scrutinize requisitions looking for situations like this that will cause problems down the line.  Requisitions that need to be changed will be closed and will need to be re-done by the requisitioner.

Next, we need to look at how we account for freight, shipping and delivery charges. Workday provides a totally new capability in that we are able to record and account for freight charges in the way we should have been doing it all along, as a separate category. On the Workday purchase order and the Workday invoice, freight is recorded in a separate field in the header of the document. But the Workday requisition does not have any separate place for recording freight.  Until a fix is found, requisitioners are asked to note freight charges in the Internal Memo field of the requisition. Buyers will add the freight to the PO in the Freight Amount in the header and Workday will process the transaction correctly. Please do not include separate lines for freight on the requisition. If separate lines are created for freight, the requisition may need to be closed and the entire requisition will need to be re-done. Having the Buyer put freight in the “Freight Amount” field allows freight to be properly allocated to all lines of the PO automatically.

Thank you and I hope this information is helpful. Please pass it on to co-workers, and this will be added to BCN Purchasing’s website, under News & Announcements. Also take advantage of
Workday training opportunities offered at your institution and/or NSHE.