Operational Workflows & State Machines

The Purchases & Procurement domain defines explicit workflows and state machines to ensure that every document moves through a controlled, auditable lifecycle from internal need to financial settlement.

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1. Full Procurement Lifecycle

flowchart LR
    A[Internal Request / PR] --> B{Requires Tendering?}
    B -->|Yes| C[RFQ & Quotation]
    B -->|No| D[Direct PO]
    C --> E[Quotation Selection]
    E --> D
    D --> F[PO Approval]
    F --> G[Send to Supplier]
    G --> H[GRN Receipt / WMS]
    H --> I[Vendor Bill Receipt]
    I --> J{3-Way Match?}
    J -->|Match| K[Approve for Payment]
    J -->|Mismatch| L[Discrepancy Workflow]
    L -->|Resolved| K
    L -->|Rejected| M[Debit Note / RTV]

Stage	Business Responsibility
Internal Request (PR)	An internal user requests goods or services and specifies required quantity, target date, and budget center.
RFQ & Quotation	Procurement invites competitive bids from approved suppliers for the requirement.
Quotation Selection	Procurement evaluates bids and selects a supplier based on price, lead time, quality, and terms.
PO Approval	The commitment is routed through the approval matrix based on value, category, and cost center.
Send to Supplier	The approved PO is transmitted to the supplier and becomes legally binding.
GRN Receipt	WMS records physical receipt and generates receiving evidence consumed by Procurement.
Vendor Bill Receipt	The supplier’s invoice is captured and matched against PO and GRN.
3-Way Match	The system verifies parity between PO, GRN, and Bill within tolerance.
Approve for Payment	The bill is approved and passed to Treasury for settlement.

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2. Discrepancy & Return Flow

flowchart TB
    A[Inspection / Receipt] --> B{Acceptable?}
    B -->|Yes| C[GRN Confirmed]
    B -->|No| D{Rejection Type}
    D -->|Quality Reject| E[Debit Note Issuance]
    D -->|Over-Delivery| F[Return Authorization]
    D -->|Price Discrepancy| G[Supplier Re-negotiation]
    E --> H[Return to Vendor / RTV]
    F --> H
    G --> I[Credit Note or Corrected Bill]
    H --> J[AP Adjustment]
    I --> J

Stage	Business Responsibility
Inspection / Receipt	Received goods are inspected for quantity, quality, and conformity to PO terms.
Quality Reject	Non-conforming goods trigger a debit note and return authorization.
Over-Delivery	Excess quantity beyond tolerance is rejected or quarantined pending authorization.
Price Discrepancy	Invoiced price differs from PO price and requires supplier correction or debit/credit note.
Return to Vendor (RTV)	Physical goods are returned to the supplier with accompanying financial adjustment.
AP Adjustment	Accounts payable balance is reduced through debit note or credit memo.

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3. State Transition Tables

Purchase Requisition

Current State	Trigger / Event	Next State	Business Validation Rule
Draft	Submit for approval	Pending Approval	Requester and cost center are valid.
Pending Approval	Approver rejects	Rejected	Rejection reason is mandatory.
Pending Approval	Approver approves	Approved	Value is within requester’s delegation.
Approved	Convert to PO	Converted	Selected supplier is on the AVL.
Approved	Cancel	Cancelled	No active PO line references the PR.

Purchase Order

Current State	Trigger / Event	Next State	Business Validation Rule
Draft	Submit for approval	Pending Approval	Lines reference approved suppliers and budgets.
Pending Approval	Approver rejects	Rejected	Rejection reason is mandatory.
Pending Approval	Approver approves	Approved	Approval tier matches PO value and category.
Approved	Supplier confirms	Confirmed	Supplier acknowledgment is recorded.
Confirmed	Partial GRN received	Partially Received	Received quantity does not exceed ordered quantity.
Partially Received	Full GRN received	Fully Received	Cumulative GRN equals PO quantity.
Fully Received	Vendor bill matched	Closed	All bills matched and no open variances.
Approved / Confirmed	Cancel	Cancelled	No received quantity exists.

Vendor Bill

Current State	Trigger / Event	Next State	Business Validation Rule
Draft	Capture invoice	Pending Matching	Supplier and PO references are valid.
Pending Matching	Match against PO & GRN	Matched	Quantities and prices fall within tolerance.
Pending Matching	Variance detected	Discrepancy	Variance exceeds configured tolerance.
Discrepancy	Dispute resolved	Matched	Authorized approver accepts the variance.
Matched	Approve for payment	Approved	3-way match is complete.
Approved	Payment scheduled	Paid	Treasury confirms payment execution.
Discrepancy	Return authorized	Rejected / Debit Note	Debit note is issued and RTV processed.