Procure to Pay - Temple University

Report
Procure to Pay
(P2P)
Barbara Moser - Purchasing
Joanne Webb - Accounts Payable
Welcome
P2P Business Process Workshop Agenda
Procure to Pay
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Introduction
Key Terms and Processes
TUmarketplace Discussion
General Requirements and Policy Review
Creating a Requisition for PO, Approval, Processing,
and Payment
Summary
After This Workshop You Should:
Be familiar with the systems and processes
required for purchasing
Know how to get invoices paid quickly and
accurately
Understand your role in the P2P process
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Procure to Pay
P2P
Business process covering
Requisitioning
4
Purchasing
Invoice
Entry
Receiving
Payment
Purchasing Department
The mission of the Purchasing Department is to respond to the procurement needs of the
University community efficiently and effectively by obtaining quality goods and services at
competitive prices and providing responsive and responsible service to all University
departments.
 Provide the Tools to Purchase Efficiently:
•
•
TUmarketplace – electronic ordering system
TUebid – electronic bidding system
 Supplier Relationship Management (SRM)
• Supplier qualification review and approval
• Obtain quotations
• Contract negotiation and management
• Conduct bidding
• Award bid
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Purchasing Key Terms
eProcurement
An electronic ordering system - TUmarketplace
Showcase Catalog Vendor
Electronic “static" catalog in TUmarketplace
Punchout Catalog Vendor
TUmarketplace linked to vendor’s website
Requisition (PR)
Initial request to make a purchase
Purchase Order (PO)
Legal document authorizing use of university funds
Blanket Purchase Order (BPO) Used for recurring purchases – not encumbered
Change Order (CO)
Original conditions of order have changed
TPcard
Temple issued credit card for small dollar transactions
Vendor/Supplier
Contribute goods or services in a supply chain
Contract
Legally-enforceable promise made by one party to another
Terms and Conditions
Set the rights and obligations of contracting parties
Encumbrance
Anticipates a future expenditure and is recorded by a PO
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Purchasing Process
Requisition
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Workflow
Approval
Select Supplier
Set Terms
Award Bid
and
Conditions
Req. routes
to
Purchasing
Send
Purchase
Order
Requisition
Initial request to make a purchase
 Need to purchase good or service
 Catalog Requisition vs Non-Catalog Requisition – can’t be mixed
• Punchout Catalog – begins on vendor’s website
• Hosted Catalog – begins in file catalog
 Shopping Cart created and assigned a name – change to unique
 Enter correct FOAPAL, accounting codes
 Attach forms, if required
 Place Order – enters workflow approval
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Workflow Approval Process
Enters Purchasing
Different Rules at Same Level require more than one approval at that level
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Purchase Order
Legal document authorizing use of university funds
$5,000 and greater
 Authorized before goods or service ordered
 Competitive Bid Required
•May require a Sole Source Form if not bid
 Transmitted to vendor electronically
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Purchasing
General Requirements
Less than $5,000
Competitive Bid Not Required
$5,000 and greater
Competitive Bid Required
•May require a Sole Source Form if not bid
Only non-catalog requisitions route to
purchasing for review and PO
Both catalog and non-catalog requisitions
route to purchasing
Showcased & Punchout catalog orders do
Purchase Order Required
not route to purchasing for review or PO
http://www.temple.edu/controller/purchasing/policies_procedures.htm
TUmarketplace Access
TUportal
Administrative
System Access
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TUmarketplace “Landing Page”
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TUmarketplace Catalogs
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TUmarketplace TPcard Enabled Vendors
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Temple Pcard (TPcard)
~Purchasing Card~
Non-Allowable
Allowable
• Travel
• UPS
• Food
• Conference Registrations
• Gifts and Gift Cards
• Memberships to
Professional
Organizations
• Personal
• Contributions, Donations,
or Sponsorships
• Computers
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• Books
Benefits
• Reduces: Number of PO and
invoice processing
• Reduces: Use of personal
funds for University business
transactions &
reimbursements
• Faster order placement,
quicker delivery
• Quicker payment to vendor
• Non-hazardous lab
supplies
• Reduces paper
Please Refer to Purchasing Dept. Website for Complete List
www.temple.edu/controller/purchasing/PurchCardProgPolicies-Proced.htm
Forms
Purchasing
Not processed in Purchasing
Might be processed
In Purchasing
Accounts Payable Online
Invoice Payment
Development
Communications
HSC OFM
Work Order
Creative
Services
Automated Clearing
House (ACH) Deposit
Authorization
Internal
Photography
Surplus
Work Order
Contract
Approval
Police/Security Services
Diamond Dollars
Main OFM
Work Order
Vendor
Quote
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Contract Approval Form Process
 Electronic workflow approval of legal documents
 Will process through Purchasing if contract is greater than $5,000 and
commits University funds
Complete
Contract Approval
Request Form
After workflow
approval, the
requisition is routed
to Purchasing – if
commits funds
>$5,000
Purchasing reviews
for proper
documentation and
requisition routes to
University Counsel
University Counsel
reviews, obtains
electronic signature
When a Purchase
Order is required
the signed contract
routes to Purchasing
to create a PO
The requisition is
closed and the
contract is exported
to Imaging
Supporting documents are sent to vendor by your department
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Independent Contractor Forms
1) Independent Contractor Determination and Certification
Independent Contractor should answer yes to all of the questions
2) Independent Contractor Service Agreement
Scope of Work
Total Cost
3) W-9 – I.R.S. Tax Form
Under $5,000 – Agreement can be executed by department dean
or vice president
Over $5,000 – Agreement must be attached to a purchasing
requisition with all Independent Contractor forms for review and
approval by Accounts Payable
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Sole Source Form
 Only One Source
• Unique expertise or technology leadership
• Patent protection or copyrighted materials
• Original Equipment Manufacturer (OEM)
• No suitable competitor
 Preference for one vendor does not justify sole source
 This is the exception rather than the rule
https://prd-challenger.erp.temple.edu/employeeforms/Purchasing.htm
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Small Dollar, Small Package, Big Truck
FY13
6,685
672
TUmarketplace POs under $50.00
Orders less than $10.00
FY14
4,160
TUmarketplace POs under $50.00
T I M E
C
O
S
T
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Requisition
Approval
Generate PO
Labor
Order Received
Pick/Pack
Material & Labor
Ship
Delivery
Invoice
Receive and Accept Product
Pay Invoice
Labor
Order Consolidation – Making Cent$
$aves Time
$aves Money
•Conserves Resources
•Promotes Environmental Sustainability
•Reduces Waste
•Reduces Delivery Truck Congestion
•“Free Shipping” - cost of shipping can be buried in cost of product
What You Can Do
•Preplan Your Purchases
•Anticipate Needs
•Keep Stock of Items Frequently Used
•Order Consumable Products Once a Week, or less, In a Larger Order
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Upcoming Enhancements
March 30th
TUmarketplace Upgrade
New features to be announced
Spring 2014
New TUmarketplace Vendors:
AMD/DVSS ~ Medical Supplies– Punchout
National Gift Card (NGC) ~ Gift Cards - Punchout
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Accounts Payable Overview
 Accounts Payable (AP) is the source of all vendor payment
information
 Benefits of Electronic Invoicing:
• Automation of matching receipts to purchase orders
• Two Way Match
• Three Way Match
• Workflow - track and route documents through the
approval process in TUmarketplace
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Accounts Payable Key Terms
 AP– Accounts Payable
 ACH – Direct Deposit
 E-Invoicing – Electronic Data Interface
 T & E – Travel and Expense Reports
 FOAPAL – Fund, Org, Account, Program, Activity, Location
 NRA - Nonresident alien
 Receivers – Approval on invoice or entered in TUmarketplace
 W-9 – IRS Requirement
 JE – Journal Entry
 TPCard – Temple University’s Purchasing Card
 PO – Purchase Order
 Req. – Requisition
 Net 1,15, 30 – When the invoice is released for payment based off
the invoice date
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Types of Payment Requests
Using TUmarketplace
 Direct Pay (Non-PO related invoices)
 Regular Purchase Order Invoices (Committed PO Invoices)
Accounts Payable Online Invoice Payment Form
Should not to be used if a Pcard is available
 Blanket Purchase Order Invoices (Not committed to budget)
 Independent Contractors (PO and Non-PO)
 Credit Invoices
 Travel and Expense Reports (Concur Travel and Expense
System)
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Accounts Payable Frequently Asked Questions
How do I know whether I should call Accounts Payable or
Purchasing with a question?
 Check status of purchase orders or payments on an invoice/check request by
using Self
Service
Banner
or contact
Accounts
Accounts
Payable
Online
Invoice
Payment
Form Payable at [email protected]
be usedorder,
if a Pcard
is available
 Need to make aShould
changenot
to atopurchase
contact
Purchasing
 Questions regarding PCard, contact Purchasing
 Questions regarding contract specifics, contact Purchasing
 How do I know if a person is an Independent Contractor or an Employee,
contact Accounts Payable
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Accounts Payable Frequently Asked Questions con’t
How do I know if a person is an Independent Contractor or an Employee?
 Employee:
 Temple controls what work will be done and how it will be done.
 Temple has the right to control and manage the details of how and when the work is
performed.
Accounts
Payable Online Invoice Payment Form
Should not to be used if a Pcard is available
 Independent Contractor:
 Individual specializes in a field, ex: landscaper, consultant, etc.
 Contractor decides how the work will be done, not Temple
 Typically set their own hours and are paid on a free-lance basis, either a flat rate or per
job rate
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Accounts Payable Frequently Asked Questions con’t
How do I enter a receipt in TUmarketplace?
 Quantity Receipt:
 Quantity receipts are used for products regardless of how many items are
purchased
 Cost Receipt:
Accounts Payable Online Invoice Payment Form
 Cost Receipts are used
with
that ifare
for services
such as Independent
Should
notorders
to be used
a Pcard
is available
Contractors, Maintenance Agreements, Software installation and any other
service related orders
Here is the link which is located in the Unified Resource Center. Go to
TUportal, right hand corner click on the help. Here is where you will find all
the material to walk you through a lot of your questions.
https://tuportal3.temple.edu/apps/global/help/resources/TUM/Settlement_Manager_Instructions.pdf
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