Purchasing and Accounts Payable Training

1. Purchasing and Accounts Payable Training

2. Agenda • Procure to Pay Process Walk-Through • Examples to Prevent Matching Issues and Pre-mature encumbrance (PO) closing • List Current Issues • Next Steps

3. Procure to Pay Process - Workflow

4. Procure to Pay Process – BATCH Processes Purchasing Processes • Quick source requisitions into POs • PO Budget Check • PO Document Tolerance • PO Dispatch • Publish Outgoing Message to SciQuest 7 Days a Week 10AM to 10:15AM 1:30PM to 1:45PM 4:30PM to 4:45PM 7:00PM to 7:15PM

5. Procure to Pay Process – BATCH Processes Accounts Payable Processes • AP Voucher Build - 8:00PM • AP Voucher Matching - 8:05PM • AP Voucher Budget Check - 10:00PM • AP Voucher Doc Tolerance - 10:30PM • AP Voucher Post - 11:00PM • AP Payment Post - 11:30PM • AP Voucher Post - 1:00AM 7 Days a Week

6. Procure to Pay Process – BATCH Processes Additional Batch Processes • PO Reconciliation - 1:15AM • PO Budget Check - 1:30AM • REQ Reconciliation - 1:45AM • REQ Budget Check - 2:00AM 7 Days a Week

7. Procure to Pay Process Walk Through • Requisition • Purchase Order • Receipt • Voucher DemO

8. Matching: Purchasing & AP’s Relationship • Matching is the process used to compare AP Vouchers with Purchase Orders and Receipts (if receiving required), to ensure that GRU only pays for the goods and services that have been ordered and received • 2-way match – AP voucher & PO • 3-way match – AP voucher, PO & Receipt

9. Matching: Purchasing & AP’s Relationship • Good Relationships require good communication • Decisions made by each department can affect the other

10. Purchasing Responsibilities • Ensure PO is setup correctly • Receiving Options • Required • Optional • Do not receive • Matching Options • Full • No match • All lines on a PO should have the same Matching requirement

11. Example of Mis-matched Matching Options on a PO Match Status on the PO Header?

12. Accounts Payable Responsibilities • Understand how creating a PO Voucher can affect Matching results • Understand what the Match Exception means BEFORE deciding to override it, and what the effect will be if it is overridden • If necessary, request the Buyer to correct the PO Matching and/or Receiving settings BEFORE paying the invoice

13. Accounts Payable Responsibilities • Creating Voucher user Worksheet option • Vendor Location and Address is pulled from the Vendor – NOT the PO • Adjust the Quantity or Amount BEFORE copying the PO/Receipt into the voucher

14. Example – Reducing Qty BEFORE Copying to Vchr Note: This will help reduce pre-mature un-encumbering of POs.

15. Example of Vendor Addresses • Entering the Vendor ID on the Add a New Value page, will cause the Default Vendor Location and Address from the Vendor File to populate on the Voucher

16. Example 1: Override OR Not to Override • PO Qty = 5 • Vchr Qty = 5 • Receiving Required, but No receipt created • Match exception: Vchr quantity does not equal sum of receipt qty; No receipts found • If you override, the PO status will get updated to Partially Matched, but will NOT get updated to Matched. • The PO will NOT be eligible to be closed. The Purchasing Department will have to manually force it to close. • The PO CAN be vouchered again, since the PO Match Status was not updated to Matched. However, Doc Tolerance will get an exception, which is a good double check, but will also have to be overridden.

17. Example 2: Override OR Not to Override • PO Qty = 5; Unit Price = $20.00 • Vchr Qty = 5; Unit price = $17.00 • Receiving NOT Required • Match exception: Unit price does not equal PO unit price • First, determine that the invoice amount is correct. • If you determine that the final price is less than the PO amount, then it is OK to override the Match exception. • Then, the PO Match Status is updated to MATCHED, since the full Qty was vouchered. • The PO will be eligible to be closed, without further intervention.

18. Example 3: Override OR Not to Override • PO Location: Main – Address Seq 1 • Vchr Location: Remit – Address Seq 2 • Match exception: Vendor does not equal PO vendor • If you do have a valid reason (the invoice), to use a different vendor addresss, then it is OK to override the Match exception. • Then, the PO Match Status is updated to MATCHED, since the full Qty was vouchered. • The PO will be eligible to be closed, without further intervention.

19. Example 4: Override OR Not to Override • PO Amount = $445.43 • Receipt Amount = $445.43 • 3 Vouchers: 1-$285.84, 2-$155.42 & 3-$4.17 • Match exception: No Receipt found, but unmatched ones exist; Vchr line amt > Sum of received amount • You should not override these Match Exceptions. • Go to the voucher and associate the receipt. • In this case, there are 3 vouchers and 1 receipt. Due to the document association rules, the system will not automatically match them to each other.

20. Example 5: Override OR Not to Override • PO Line Amount = $31.40 • Vchr Line Amount = $6.28 • Previously Vouchered Line Amount = $31.40 • Match exception: Life to Date > Sched Amt # % ext tol • This match exception needs to be researched, to determine the best way to handle the match exception. • The Match Exception tells us that the voucher amount EXCEEDS the PO tolerance amt. • Determine if there is a valid reason for Exceeding the PO Amount. • Choose which action to take: • Override • Correct the voucher amount • Close/Delete the voucher if it is a duplicate

21. Current Issues • Incorrect category codes/account codes on requisitions

22. Current Issues - Cont’d • Electronic Credit Memos from Health eShop Vendors Example: PO for 5 items, the department only received 4 of the items, and we receive a credit memo for the 5th item

23. Current Issues - Cont’d • 998 POs are current marked as in process • AP cannot pay them until they are not marked in process • Waiting for IT to run a DBI to correct them

24. Current Issues – Cont’d • Zero Dollar Lines • Is this causing issues? • What is the process? • Are the requesters receiving all the lines?

25. Current Issues – Cont’d • Helpful departmental-user communications • Keep in mind that the departmental users do not use the same language, abbreviations or slang that we use in everyday processing • Be customer-service oriented • Do not make assumptions

26. Current Issues – More?

27. Next Steps • Meeting with Greg & Donna on the 20th • Resolving Current Issues • More training/issues meetings

28. Thank You!