Please let me have your comments.  Thank you.
 -----Original Message-----
From: 	Linnell, Elizabeth  
Sent:	Friday, April 06, 2001 9:27 AM
To:	Derrick Jr., James; Buy, Rick; Fastow, Andrew S.; Donovan, Bill; Olson, Cindy
Subject:	iBuyit - Need your input

The Corp. design of the iBuyit system is well underway.  We appreciate your initial support of the system and would like to solicit your input on some system details that will be custom to the Corp. deployment and may be used eventually for other business units' standards.  Bob Butts has approved the following request limits for Corp. Accounting, and we need to get your "OK" as well for implementation.  Please call me at x33896 if you have any questions or would like to discuss this proposal.

Request limits:  The system allows setup of graduated dollar limits for order amounts based on job classification, which are listed below, with some examples of items that might fit within each limit.  Requests with totals below these limits would flow through the system without any further authorization required.  Exceptions to these levels can be made on an individual basis, and those individuals will be identified as we get closer to implementation.
	
Level 1	Clerks/Sr. Clerks	$250		Routine office supplies, beverages, pager, computer keyboard
Level 2	Admins/Specialists	$500		Small furniture, larger supply orders, palm pilot
Level 3	Sr. Specialist		$5,00		Computer, fax machine, furniture
Level 4	Manager		$25,000
Level 5	Director/Sr. Director	$100,000
Level 6	Vice President		$250,000
Level 7	Managing Director	$500,000
Level 8	EVP			$1.0M
Please note that these amounts fall within the Enron standards for invoice approval authority.  In our meetings with Stakeholders and Change Agents, we got a clear message that lower ordering authorization was preferable.  

Approval Flow:  The system allows approval flow to be customized to each department.  For example, Public Affairs could require a request for $650 placed by a clerk to flow first to an Admin for approval, then to a Sr. Specialist or higher for final issuance.  The Accounting department could require a request for $650 placed by a clerk to go directly to a Director for the first level of approval.  Under the limits proposed below, a $650 request by a Sr. Specialist would not be routed, as it would fall under the specified ordering authorized level.  As we get closer to the implementation date, we will work with the designated Stakeholders to design the approval flow for your departments.

Controls:  As with any system, a concentrated effort can bypass built-in controls.  As a control mechanism, we've proposed that SAP generate a periodic report so that cost center owners can conveniently track ordering activity.  The team is working on the best way to generate and deliver this report.

I appreciate your "OK" on the above, or any feedback you might have.

Regards,
Elizabeth Linnell