Non-PO Invoices - University of North Carolina

Report
SciQuest Integration
Derrick Graham – SciQuest
Product Owner
Jim Arlington – SciQuest Client
Partner
Session Etiquette
• Please turn off all cell phones.
• Please keep side conversations to a minimum.
• If you must leave during the presentation, please do so
as quietly as possible.
• Thank you for your cooperation!
2
What We’ll Cover Today
• Non-PO Invoicing
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Types of non-PO invoices
Traditional Problems with non-PO invoices
Best Practices to improve non-PO management and approval
How AP Director can help improve your non-PO processes
• Change Orders
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Change Order Process Overview
Requirements for change order integration
Integration Details
Recent Improvements
Best Practices for change order processing
Frequently Asked Questions
3
Non-PO Invoices
• Whether we like it or not, Non-PO invoices are a part
of doing business
• Some Non-PO invoices are unavoidable, but you can
take steps to limit their impact on your organization
• When they arrive – how do you manage them
effectively?
4
Types of Non-PO Invoices
• The Good
• Dues or fees
• Monthly/Annual charges such as rent or utility bills
• Time-sensitive services such as emergency repairs
• The Bad
• Purchases made outside the system
• After-the-fact
• The Ugly
• Non-compliant/off-contract spend, “gaming the system”
5
Pre-Approved PO Spend
We looked at 5 large universities that put a
large % of their addressable spend through
SciQuest:
• On average, 36% of their transactions are
“after the fact” (non-PO or Payment
Requests)
• There is a significant opportunity to drive
more spend towards pre-approved catalogs
and contracts
• SciQuest estimates 11% savings on catalog
orders / contract compliance
Peer 1
Peer 2
Peer 3
Peer 4
Peer 5
AVG
Pre-approved PO's
Non-PO Invoices & Payment Requests
Total Transactions
170,653
21,389
192,042
104,396
19,955
124,351
125,478
62,937
188,415
27,710
83,026
110,736
18,550
58,980
77,530
89,357
49,257
138,615
Pre-approved PO's
Non-PO Invoices & Payment Requests
Total Transactions
89%
11%
100%
84%
16%
100%
67%
33%
100%
25%
75%
100%
24%
76%
100%
64%
36%
6
100%
Managing Non-PO Invoices
• Reduce Data Entry
• Have supplier submit non-PO invoices through the portal or via cXML
• Utilize Digital Mailroom or your own scanning provider to import
invoices and cut out paper processing
• Some suppliers can do electronic non-po invoicing
• Automatically Assign Accounting Codes By
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•
•
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Supplier
Supplier Account Number
Invoice Owner
Business Unit or Department
7
Managing Non-PO Invoices
• Require Proper Commodity Codes
• If you can’t manage the spend before the purchase, at least give your
organization the ability to categorize and report on it after the fact
• Use this data to help purchasing identify problem areas
• Create Blanket POs
• Use cost matching functionality and Advanced Dynamic Matching to
remove the need to touch every invoice (Note – will be a services
engagement with SciQuest unless there is an upgrade to AP Director)
• Use Invoice-Attached or After the Fact Forms
• Auto-create invoices after the form goes through existing purchasing
workflow
• Control who has the ability to create non-PO invoices
8
Improving Non-PO Approvals
• Decentralize and automate approval of predictable spend
such as rent payments or cell-phone bills using the supplier
account number field
• Automatically route non-PO invoices to the invoice owner’s
department or budget approver
• Restrict edits by departmental approvers to accounting codes
(splitable custom fields) only
• Only give departmental approvers permission to approve to
stop improper rejection
9
Non-PO Invoicing Wrap-up
• Some non-PO invoices are unavoidable, but you can take
steps to lessen their impact
• Automate coding and approvals of non-PO invoices wherever
possible
• Increase portal, cXML, and scanned invoices import usage to
cut down on paper and expedite processing
• Work with procurement to analyze non-PO spend and identify
opportunities to move to pre-approved catalogs and contracts
10
How Accounts Payable Director Can Help
• Cost-based matching with blanket POs and Advanced Dynamic
Matching
• The Digital Mailroom add-on reduces paper and displays a
scan of the original invoice. It also included the ability to
receive a scanned image.
• Non-PO auto-coding cuts out manual intervention to speed up
processing
11
Change Order Integration
Change Order – New Integration Point
• PO Revision
Initiated by
user
SciQuest
IFEP
• Automatic
creation of
Banner Change
Order
• Change Order
validated and
posted
SciQuest
• Revised PO
sent to supplier
Banner
13
Requirements for Change Order Integration
• Banner Finance 8.8
• Banner Integration for eProcurement (IFEP) middleware 8.2
• Revisions in SciQuest must go through PO Workflow
• Existing PO Create Integration is used
Note – Banner Finance 8.8 and IFEP middleware 8.2 must be installed
together – recommend upgrade of IFEP middleware on the same schedule of
Finance 8.8
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•PO must be open,
not canceled
•PO Must be
posted
•Items to be
changed must be
open
•Completed and
approved Change
Order is posted to
ledgers
•Posting process
publishes a status
update message
Dispatch to Supplier
•Authorized user
performs “Finalize
Revision”
•Finance API’s
validate that the
PO is eligible to be
changed
Finance Posting
•The PO must be
totally approved in
the SciQuest PO
Workflow
•Middleware
determines that
the PO Revision is
a change to an
existing PO
Finance Validations
•User needs
specific
permissions
IFEP Middleware
PO Revision
Change Order Integration Details
•SciQuest updates
status to “posted”
and dispatches the
revised PO
•PO approvals
completed
•PO now eligible
for further
revision
•Encumbrance
fiscal year must
match PO Revision
transaction date
15
Process Interaction Between SQ & Banner
• A change order in SciQuest is referred to as a PO Revision
• A user selects to create a revision on a PO and makes the
necessary changes
• The revision causes the PO to flow back through WF
• A message is sent to Banner to create the Change Order
• History tab of the PO will reflect a change order was made
• The user is only required to change the PO in 1 system
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Changes Sent to Banner From SciQuest
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Unit Price
Quantity
Ship to Location
Commodity Code
Accounting Date
• Must be combined with other changes to get updated
• More details on an additional slide
• Accounting Distribution (FOAPAL)
• Remove, modify, or add FOAPAL
• Done via Accounting Splits
17
Accounting Date – Special Note
• Accounting Date – Changed Alone
• The messaging integration supports a change to the accounting date
without any other supported changes. However, note that the
resulting Banner change order is not posted.
• Using Banner Change Order (FPACHAR) the posting process (FGRACTG)
does not post the change if limited to accounting date only
• Accounting Date – Combined With Other Changes
• When combined with other supported changes that result in posting
the Banner PO, the accounting date will be changed
18
Change Order Originated in Banner
• The FPACHAR form can also be used to change a Banner PO,
as before the change order integration existed.
• Note – A change order initiated in Banner Finance using
FPACHAR will not be messaged to SciQuest through the
integration for eProcurement.
19
Recent Updates to the Change Order Integration
• Budget Authorization
• Budget Authorization is now being accounted for with the change
order integration.
• Should a change be made to a PO that would cause the budget
authorization to fail, the error is being accounted for in SciQuest and
the change order will stop in workflow.
• cXML PO Distribution
• In the event that a user elects to send the change order to the supplier
and that supplier uses cXML as their primary distribution method, the
change order will be sent using their alternate method. (Fax or Email)
• This change is in place due to suppliers not having a means of
detecting duplicate electronic POs.
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Determine Your Business Process
• PO Changes do not flow through requisition workflow
• Will need to determine who on your campus can make PO
changes within SciQuest
• Are any additional PO workflow steps required for change
orders?
• Should specific PO workflow steps be bypassed for change
orders?
21
Change Order Best Practices
• Have a select group of users (buyers) who may perform PO
revisions/change orders
• Shoppers/Requestors will fill out a change order form in SciQuest that will
detail what changes need to be made to certain PO’s.
• That form will be routed to the individuals designated to perform change
orders (with permission for PO revisions)
• The change order will be done in SciQuest and subsequently in Banner
• The requisition with the change order request will be approved or rejected
and then completed. No PO gets created as there are not “items” on the
requisition.
22
Change Order Integration Gaps
• The following are known issues that we are currently working together
with Ellucian on:
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Cancelling line items – you must zero out the unit price in SciQuest
Accounting (Transaction) Date – must be left blank or always updated with change
orders
FOAPAL (Account Codes) – with respect to accounting code splits and invoicing
Already Invoiced – changing a PO that has already been invoiced
Postable Changes Only – Only certain fields can be modified and receive a “Posted”
message back from Banner
Note - Weekly calls are occurring between SciQuest and Ellucian
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Release 14.1 Enhancements
AP Express and AP Director Enhancements
• Invoice Import – Ability to import a header level invoice
discount amount
• Workflow – New Invoice / PO Comparison capabilities for
workflow routing
• Workflow – Ability to route if an invoice line item is under
invoiced
• New Cycle Time Report – Invoice Create to Invoice Export
• New Cycle Time Report – Invoice Submit to Invoice Export
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Release 14.1 Enhancements – AP Reports
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Release 14.1 Enhancements – AP Reports
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Release 14.1 Enhancements – AP Reports
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Frequently Asked Questions
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What was the first version of SciQuest to offer this?
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What Banner releases must we be on?
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You may change quantities, prices, ship to locations, and FOAPAL elements
Does the change order get sent to the supplier?
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Banner Finance 8.8
Integration for eProcurement (IFEP) middleware version 8.2
What can be changed on the PO?
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12.3 which was released November 4, 2012
It depends – Upon completing the PO revision you can specify if it should get resent to
the supplier or not
Can the change order go through requisition workflow?
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No, the change order flows through PO workflow
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Additional Q & A
29
Thank You!
Derrick Graham
[email protected]
Jim Arlington
[email protected]

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