Procure to Pay Reports

1. Procure to Pay Reports Delivered by: Cindi Stinebaugh & Susie Geswein June 2009

2. Objectives Resources Open PO Report Blocked Invoice Report GR/IR Open Commitments Vendor Invoices Course Content

3. Upon completion of this course you will: Understand where to find resources on procure to pay Understand how purchase orders flow through the FM ledger Understand the procure to pay and how to run them Course Objectives

4. Resources • Purchasing Home Page— http://www.purdue.edu/purchasing/ • SRM Instruction Manual— http://www.purdue.edu/purchasing/SRM/srmInstructionsManual.html • Section 11—Open PO Report • Section 13—Blocked Invoices • Section 14—Purchase Order Commitments • Process • Instructions • Section 15—Procure to Pay • Showcase • Postings • Reports Process

5. Resources • B@P— https://www2.itap.purdue.edu/bs/BPP/public/view_moduleInformation.cfm?view=mod83&name=Placing%20an%20Order • Business Manager Task Checklist (Purchasing Tab) — http://www.purdue.edu/BS-BA/Training/index.html

6. Procure to Pay Postings

7. Reviewing Reports • Order of Review • Expectations for this fiscal year • Use online report, but make notes on paper report

8. Open PO Report • This report will display all purchase orders (by line item) that have not been confirmed in SRM (including partial receipts). This report is closely related to T-code ME23N, which is where users can see details for the orders found on this report. • Exception: Guy Brown (1521), University Stores, Printing Services orders are excluded from this report because they do not need to be received in the system.

9. Open PO Report • ZFIR_SRM_OPEN_PO_SUM • This report is also available in the portal under Financial Systems>Reports>AP> Open Purchase Order Summary • Report should be reviewed by Business Office and if necessary the Receiver

10. Open PO Report

11. Open PO Report

12. Open PO Report • Review list for your area • Confirm in the system, those PO’s that items were received in acceptable condition and payment should be made. • DO NOT confirm in the system any PO’s that have NOT been received • http://www.purdue.edu/onepurduehelp/nav/finance%20_fi_/purchasing/file562/index.htm

13. Open PO Report • Benefits of keeping up with this report • will remove/stop these PO’s from showing up on the blocked invoice list unless they are out of tolerance • will help keep outstanding commitments under control • Timely movement from commitment to expense allows appropriate overhead to follow

14. ME23N—SRM Purchase Order • Account Assignment Tab • Purchase Order History Tab • Commitments for this PO

15. Blocked Invoice Report • Invoices will be blocked for payment for one (or more) of three reasons on a line item basis: • Price is out of tolerance • Quantity is out of tolerance • Goods are not confirmed • ZFI_BLOCKED_INVOICE • Report should be reviewed by the Business Office and Requisitioner if necessary

16. Blocked Invoice Report

17. Blocked Invoice Report

18. Blocked Invoice Report • Review the list and determine if ok to pay • Compare to Open PO Report to see if issues are outstanding • Confirmation needed in system? • Credit memo needed from vendor? • Form 26 needed? • How to relieve a blocked invoice—Section 13

19. Blocked Invoice Report • Benefits of keeping up with this report • Should clear GRIR issues for that PO • Timely vendor payments • Keep shipments coming • Help with negotiating better pricing in the future

20. GRIR Clearing Report • ZFI_GR_IR_CLEARING • GRIR=Goods Receipt Invoice Receipt • Purchasing/AP manages this report for the University, but this can be a good resource for business offices • Resolution comes from the BO • If items are in the GR/IR account, there could be an affect on your financial statements

21. GRIR Clearing Reports

22. GRIR Clearing Reports

23. GRIR Clearing Report • Should be reviewed by Business Office and Receiver if necessary • Review outstanding entries (oldest first) • Use ME23N to see what has happened (double click PO #) • Compare against Open PO & Blocked Invoice notes

24. GRIR Clearing Report • Report shows Action=Invoice Receipt (IR) Needed • Scenario 1—Goods Receipt Qty=1, Invoice Receipt Qty=1, Credit Memo Qty=1 • If item was returned to vendor, and no replacement being provided, process RETURN DELIVERY in SRM

25. GRIR Clearing Report • Report shows Action=Invoice Receipt (IR) Needed • Scenario 2—Goods Receipt Qty=3, No Invoice Receipt • Determine actual quantity physically received. • If no goods actually received, then process RETURN DELIVERY in SRM • If Goods Receipt Qty=3 is accurate, then contact vendor for invoice for Qty=3

26. GRIR Clearing Report • Report shows Action=Goods Receipt (GR) Needed • Scenario 1=Goods Receipt Qty=3, PO Qty=3, Invoice Receipt Qty=5 • Check notes from Blocked Invoice Report. See if actions are in process to clear • This scenario should have already been worked on Blocked Invoice Report

27. GRIR Clearing Report • Report shows Action=Goods Receipt (GR) Needed • Scenario 2=No Goods Receipt, PO Qty=1, Invoice Receipt Qty=1 • Check notes from Blocked Invoice Report. See if actions are in process to clear • This scenario should have already been worked on Blocked Invoice Report

28. GRIR Clearing Report • Report shows Action=Quantity Issue • Scenario 1=Goods Receipt Qty=5 > Invoice Receipt Qty=3 • Verify quantity actually received • If GR is correct, contact vendor for remaining invoice receipt qty. • If GR is incorrect, process RETURN DELIVERY for the difference

29. GRIR Clearing Report • Report shows Action=Quantity Issue • Scenario 2= Invoice Receipt Qty=4 > Goods Receipt Qty=2 • If GR correct, contact vendor for credit memo or additional items • If GR incorrect, confirm additional qty in SRM

30. GRIR Report • Benefits of keeping up with this report • Account balances may not be accurate, if there are blocked invoices, or situations where the GR/IR is out of balance. • Promotes work time efficiency • Unpaid vendors might delay delivery of other open POs

31. Open Commitments • This report lists open po commitments • FMRP_RFFMEP1AX—(variant=COMMITMENTS) • This report should be reviewed by the Business Office • Review the issues from your other lists and mark off this list so you do not review the same issues

32. Open Commitments • This report should catch two-way match vendors with open commitments (i.e. Guy Brown, Printing Services) • Open Commitment Instructions—Section 14

33. Open Commitments

34. Vendor Invoice Report • Will show all invoices and credit memos posted to a given range of cost objects, which should make it easier for staff to determine what invoices are still aging – or open – and not yet paid out to the vendor. • B@P News article— http://www.purdue.edu/business/bpnews/News_Releases/Buying/General_Info/newVendorInvoiceReport.html

35. Vendor Invoice Report • ZFI_VENDOR_INVOICES

36. Vendor Invoice Report

37. Vendor Invoice Report

38. Closing Accounts • These reports have been added to the Closing Accounts Checklists to avoid unexpected expenses after account is closed, ensure all commitments have been relieved, as well as ensuring that vendors can still be paid.

39. Questions?