Procurement to Invoice Jim Boyer Sr Consultant jim

Procurement to Invoice Jim Boyer Sr. Consultant jim. boyer@cistech. net

Making it all work together • Purchasing • $ • Receiving • $ • Invoicing

Control • Materials Management • Or • Associates • Requisition and Order • Materials • Management • Accounting • Voucher • Receive • Pay

Why? Accuracy Control Efficiency Attainment Costing Performance • The Goal

Procure to Invoice • Requisition • Request • Validate • Purchase Order • Approve • Authorize • Receive • Authorize • Record • Voucher • Validate • Record

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

FOB Codes

IFM Data

Terms are active in IFM and Purchasing • Vendor • Order • Invoice

PO Header Freight Special Charge Taxes Approver Payment Terms

Vendor Details

PO Header

PO Item

Key Data FOB / Freight codes Terms Special Charges Tax Transaction Types Unit / Nature Charge Type

Receive Validate Authorize Identify

Receiving Screens

Key Receiving Data PO Number Item Quantity / Unit if Measure Release Goods Receipt Note (GRN) GRN Invoice ‘Y/N’ • 70001 • 1002 • 70001 • 1003 • 70001 • 1004

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?

Invoice Process Screens

Invoicing

Invoicing Match

Generate from Goods Received

Key Data Invoice Number GRN Number Items Amounts FOB

Purchase to Voucher • Inventory • RP 100 • Receipts Not Invoiced • RP 100 • CA 100 • Accounts Payable • AP 125 • Price Var. • CA 25 • Invoice Clearing • AP 125 • CA 125 • Standard = 100 • Invoice = 125

Invoicing Benefits – Pay PO Price – Pay for Received Quantity – Match Invoice to Inventory Receipt – Minimize Effort

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

The Requisition to Invoice • Request • Approve • Invoice • Order • Receive

Return to Sender Purchasing Debit Memo To IFM A/P Debit

Return to Vendor • Update PO Line item Data • VR Transaction in IM • Post into IFM • Reduce Payments

Return to Vendor RP Purchase Receipt PQ Purchase Quality Receipt RQ Reject & Return For Quality VR Vendor Return

Return to Vendor • RP • PQ • Receive • RQ • Reject * • VR • Return

Return to Vendor VR – Vender return – PO – Location – Quantity – Resupply (Y/N)

Return to Vendor

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!