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Learn the benefits of integrating procurement to invoice workflows efficiently, including accuracy, control, transparency, and cost savings. Explore key steps from requisitioning to invoicing, ensuring accuracy and control at every stage.
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Procurement to Invoice Jim Boyer Sr. Consultant jim.boyer@cistech.net
Why? • Accuracy • Control • Efficiency • Attainment • Costing • Performance The Goal
Request & Validate • Request • Requisitioner • Item • Due date • Validate • Unit and Nature (Department / Account) • Tax • Unit of Measure
Request & Validate • Benefits of requisition system • Can’t be lost • Item Identification • Creator knows his department ? • Approver can review on-line • A/P has audit trail to source • Accuracy • Formal Communication
Approve & Order • Convert Requisition to Order • Validate / Authorize Pricing • Validate Tax Rules • Validate Unit / Nature • Authorize Delivery • Schedule Receiving
Approve & Purchase • Benefits • Better pricing • Better sourcing • Cash Commitments analysis • Better Control • Validate the Delivery • Validate the Invoicing Process
The Data Base • FOB Codes • Charges • Unit / Nature • Terms • Vendor Item Master • Personal Account
Terms • Terms are active in IFM and Purchasing
PO Header • Freight • Special Charge • Taxes • Approver • Payment Terms
Key Data • FOB / Freight codes • Terms • Special Charges • Tax Transaction Types • Unit / Nature • Charge • Charge Type
Receive • Validate • Authorize • Identify
Key Receiving Data • PO Number • Item • Quantity / Unit if Measure • Release • Goods Receipt Note (GRN) • GRN Invoice ‘Y/N’
Receiving • Benefits • Confirm order is Delivered • Quality • Vendor Performance • Authorize Payment
Invoice Process • Validate • Record • Authorize
AP Invoicing • Manual Entry • Manual Generation • All / Selected • Ordered • Received • In Stock • Pay on Receipt Who is the accountant anyway?
Key Data • Invoice Number • GRN Number • Items • Amounts • FOB
Purchase to Voucher • Invoice Clearing • Inventory • Receipts Not Invoiced • RP 100 • RP 100 • AP 125 • CA 125 • CA 100 • Accounts Payable • Price Var. • Standard = 100 • Invoice = 125 • AP 125 • CA 25
Invoicing • Benefits • Pay PO Price • Pay for Received Quantity • Match Invoice to Inventory Receipt • Minimize Effort
Accrual • Accruals of receipts not invoiced • Generate Invoices from Goods Received • Process IFM Accruals • Delete Generated Batches • Reverse Accruals the Next Month
Outside Operations • Generate POs from Manufacturing Order Release • Process RP Transaction to Report Completion and Generate Liability • Process Invoice to Transfer Receipt Liability to Accounts Payable
Return to Sender • Purchasing Debit Memo To • IFM A/P Debit
Return to Vendor • RP Purchase Receipt • PQ Purchase Quality Receipt • RQ Reject & Return For Quality • VR Vendor Return
Return to Vendor • VR – Vender return • PO • Location • Quantity • Resupply (Y/N)
Return to Vendor • Benefits • Pay Only for Good Parts • Better Communication • Transparency • Vendor Performance Reporting
Overall Benefits • Plan and Execute • Authorize • Control • Efficiency • Attain • Transparency Within the Enterprise
Procurement to Invoice Thank You for Attending!