The requisition process in Matrix42 Contract Management is set up so that the contractual agreements are transparent in terms of hardware, software, and services that have been procured and are to be procured.
A requisition process in Matrix42 Enterprise Service Management consists of several steps described below.
Planning a requisition
Usually the process begins in Asset Management or License Management where an order for a stock keeping unit or a software product is planned and prepared. Alternatively, the process can also begin in Contract Management. The requisition process begins when a contract item is created and linked to a new or existing contract with the Draft status.
Ordering a requisition
If a contract has been prepared to the point where the order is sent to the purchasing department or purchasing system, the contract status can be set to Requested. The system also sets the status of all corresponding contract items to Requested. At this point for each contract item, the system creates a purchase requisition with the New status and creates an entry in the journal that contains the details of the requested order.
Executing a requisition
Typically, the requisition is executed by the purchasing department by using an ERP system (Enterprise Resource Planning). To transfer the prepared purchase requisition to an ERP system, we recommend that you export the requisition.
Synchronizing purchase requisitions
Purchase requisitions that are processed by the ERP system are re-imported into Matrix42 Contract Management and updated with the current requisition information. This way, any changes that the purchasing department may have made (for example, a different supplier, material, quantity, or unit price) are also made in Matrix42 Contract Management.
The progress status of the purchase requisition can be set to the following values:
- New. Purchase requisition is created. Set by the system.
- Requested. Purchase requisition is copied to the ERP system.
- Executed. Purchase requisition is executed.
- Abandoned. Purchase requisition is canceled or removed from the ERP system.
- Delivered. Receiving of goods is registered in the ERP system.
- Deficient. The system cannot synchronize the purchase requisition; key information is missing (for example, supplier number cannot be found or is ambiguous). Set by the system.
When one or more purchase requisitions have been updated by the ERP system, the contract owner (internal contact) automatically receives email notification.
Updating contract/contract items
Depending on the status of the assigned purchase requisition, the contract status is updated according to the following logic:
- If all purchase requisitions of a contract are set to the Abandoned status, the contract is also set to this status.
- If at least one purchase requisition of a contract is set to the Executed status, the contract is also set to this status.
- If a purchase requisition is set to the Executed or Abandoned status, the corresponding contract item is also set to this status.
- Some attributes of the contract item are updated according to the field content of the purchase requisition.
- Execution of a purchase requisition is documented by an entry in the journal of the contract item. This entry has the same format as when you are creating a purchase requisition. This way, you can easily check whether and how the original purchase requisition differs.
Activating a contract
Before activating a contract, the contract owner (internal contact) should check the status of each contract item. This includes:
- Deleting any non-executed orders or assigning them to a new contract for future requisition.
- Editing requisitions that could not be synchronized by the system so that the links to the material or supplier are correct.
A contract is activated only when the contract status is set to Signed. By doing this, the contract, together with the contract items, is transferred to the automatic runtime monitoring and set to either Pending or Active status.
Creating a payment plan
After the contract is activated, the payment calendar should be created. In the dialog of each contract, you can set individual payment dates for the payment calendar. Alternatively, depending on the payment terms, the system can create these dates automatically. If the Payment reminder option is selected for the contract, the relevant people automatically receive an email reminder for the payment due date.
You can get an overview of the payment dates in one of the following ways:
- Check the Payment Calendar report under the Reports navigation item.
- Review all payments under Financial Accounting > Payments.
A payment can have one of the following statuses:
- On Hold
- Open (the payment is either overdue or due in fewer than ten days)