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MyFloridaMarketPlace Electronic Invoicing (eInvoicing) Overview October 14, 2010 (888) 808-6959, Passcode 9766076#

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Presentation on theme: "MyFloridaMarketPlace Electronic Invoicing (eInvoicing) Overview October 14, 2010 (888) 808-6959, Passcode 9766076#"— Presentation transcript:

1 MyFloridaMarketPlace Electronic Invoicing (eInvoicing) Overview October 14, 2010 (888) 808-6959, Passcode 9766076#

2 Agenda  MFMP Overview  What is eInvoicing  Benefits  Methods to eInvoice  Ariba Supplier Network (ASN)  Return on Investment (ROI)  eInvoicing summary  Vendor Tools  Electronic Funds Transfer (EFT)  Automated Clearing House (ACH)  Resources  Contact Us Page - 2 Agenda

3 Page - 3 MFMP Overview  MyFloridaMarketPlace (MFMP) is the State of Florida’s online e- procurement system, the single e-commerce conduit between state agency buyers and vendors to conduct public purchasing on a daily basis.  Designed to streamline interactions between vendors and state government entities that purchase goods and services  Provides a user-friendly Internet portal where vendors can register, receive information on upcoming bids, post information on products and services, receive purchase orders electronically and submit invoices electronically MFMP Overview

4  We at MFMP pride ourselves on public and private partnerships; our award-winning technology applications create easier and faster transactions for both buyers and vendors.  Excellence in IT Leadership Award from IT Florida  Excellence in Public Service Leadership from IT Florida  Honorable Mention given by the National Institute of Governmental Purchasing  Achievement for Excellence in Procurement (2004, 2005, 2006, 2007, 2008, 2009, 2010)  ComputerWorld Laureate 2008 Page - 4 MFMP Overview

5 Page - 5 MFMP Overview MFMP Vendor Benefits  Equal access for small-, disabled-veteran, women- and minority-owned businesses  Electronic Invoicing (eInvoicing)  24/7 access to more bid opportunities and information  Vendor Bid System (VBS)  Sourcing  eQuote  Improved quality and accuracy of interactions with the state  Customer service support available to provide real time assistance  Green catalog and product listing options MFMP Overview

6 Agenda  MFMP Overview  What is eInvoicing  Benefits  Methods to eInvoice  Ariba Supplier Network (ASN)  Return on Investment (ROI)  eInvoicing summary  Vendor Tools  Electronic Funds Transfer (EFT)  Automated Clearing House (ACH)  Resources  Contact Us Page - 6 Agenda

7 eInvoicing  eInvoicing is presenting an invoice electronically to agencies for payment.  eInvoicing enables vendors to conduct business in a more cost effective way that automates and streamlines some processes.  eInvoices are audited and approved electronically through MFMP.  Vendors are able to monitor invoices’ approval flow for tracking.  Any invoice disputes are electronically returned to vendors.  No paper is submitted to the agency for payment processing. Page - 7 eInvoicing

8 Agenda  MFMP Overview  What is eInvoicing  Benefits  Methods to eInvoice  Ariba Supplier Network (ASN)  Return on Investment (ROI)  Vendor Tools  Electronic Funds Transfer  ACH  Resources  Contact Us Page - 8 Agenda

9 Page - 9 Vendor Benefits to eInvoicing  Reduce costs: Create, present, manage, and archive invoices electronically, eliminating the need for paper documents and associated printing and shipping costs.  Save Time: Eliminate the production of print invoices and time spent preparing documents for mail.  Manage more effectively: Create invoices that automatically reconciles orders, invoices, payments, and related key documents associated with the financial supply chain.  Collaborate with less effort: Use fewer resources to collaborate with customers and track communications, documents, and payments.  Faster Payments: Encourages prompt and accurate processing of invoices by improving data accuracy which can reduce payment cycle times.  Green: Submitting invoices electronically does not generate paper. Vendor Benefits of eInvoicing

10 Buyer Benefits to e-Invoicing  Faster Processing Times: eInvoicing saves a good amount of time for payment processing in accounts payable offices by eliminating manual processes such as manual data entry, reducing processing errors and payment cycle times.  Reduction in paper: eInvoicing substantially reduces paper flow and associated costs such as copying and filing.  Reduction in cost: eInvoicing reduces costs by eliminating manual audit, eliminating need to research for duplicate payments, and eliminating scanning requirements. Page - 10 Buyer Benefits to eInvoicing

11 Paper Invoices submitted for payment Vendor prepares invoices Vendor prints invoices Vendor mails invoice Mail processing Agency receives invoice Agency scans invoice Invoice is entered into MFMP Invoice audited Warrant is issued  Involves printing and mailing efforts  Lose tracking control  Involves scanning and recreating the invoice and shuffling paper Page - 11 Paper Invoices Submitted for Payment

12 eInvoices submitted for payment Invoices entered into the ASN Invoices are received electronically Invoice is audited Warrant is Issued  Eliminates several activities including courier/mail and scanning processes  Allows for quicker receipt of invoice  Invoice can be tracked systematically  Improves data accuracy which reduces cycle payment times Page - 12 eInvoices Submitted for Payment

13 Agenda  MFMP Overview  What is eInvoicing  Benefits  Methods to eInvoice  Ariba Supplier Network (ASN)  Return on Investment (ROI)  eInvoicing summary  Vendor Tools  Electronic Funds Transfer (EFT)  Automated Clearing House (ACH)  Resources  Contact Us Page - 13 Agenda

14 Methods of eInvoicing  State of Florida vendors have multiple ways to provide state agencies electronic invoices via the Ariba Supplier Network (ASN)  PO Flip via the ASN  Straight Through Processing (STP)  Vendors can select the method that best meets their capabilities Page - 14 Methods of eInvoicing

15  PO Flip via the ASN  Vendors submit invoices electronically via the ASN  Invoices are created directly from the ASN Inbox by simply “flipping” the PO into an invoice  The PO Flip option does require manual intervention to flip the invoice  This option also does not require any special software or technical capabilities Page - 15 Methods of eInvoicing

16 Page - 16 Methods of eInvoicing- PO Flip Login to Ariba Network 1. Login - Enter your ASN username and password.

17 Methods of eInvoicing Page - 17 Methods of eInvoicing- PO Flip Go to Inbox 1. Inbox – Click on the inbox link to review new messages.

18 Methods of eInvoicing Page - 18 Methods of eInvoicing- PO Flip Review Purchase Orders 1. Review – Look at the orders that have been sent to you from MFMP buyers.

19 Methods of eInvoicing Page - 19 Methods of eInvoicing- PO Flip Review Purchase Orders 1. Inbox – Select an order by clicking on the order number.

20 Methods of eInvoicing Page - 20 Methods of eInvoicing- PO Flip Review Order Detail 1. Review – Confirm information on the PO is correct. 2. Create Invoice – Click the Create Invoice link to create invoice. 3. Select – Click the Standard Invoice link.

21 Methods of eInvoicing Page - 21 Methods of eInvoicing- PO Flip Invoice Entry Form 1. Complete Form – Enter your Invoice Number and any other pertinent information. 2. Click Next – Click the Next button.

22 Methods of eInvoicing Page - 22 Methods of eInvoicing- PO Flip Invoice Entry Form 1. Complete Form – Update Part #, Quantity, Unit, or Unit Price and other fields as needed. 2. Click Next – Click the Next button. For leased items use the Part# Field for Service Start and Service End Date

23 Methods of eInvoicing Page - 23 Methods of eInvoicing- PO Flip Invoice Entry Form 1. Complete Form – Update fields as needed. NOTE: Do not input a Shipping Amount or Special Handling cost unless pre- approved to do so by the purchasing agency. Please refer to the original order for an existing line item for these such costs. 2. Click Next – Click the Next button.

24 Methods of eInvoicing Page - 24 Methods of eInvoicing- PO Flip Invoice Entry Form 1. Review 2. Click Submit Button

25 Methods of eInvoicing  Straight Through Processing (STP):  cXML (commerce eXtensible Markup Language)  EDI (Electronic Data Interchange)  Requires special software or technical capabilities Page - 25 Methods of eInvoicing

26 Page - 26 Electronic Invoicing Option Comparison cXML Scalability Ease of Implementation Speed to Implement PO FlipEDI Electronic Invoicing Option Comparison High Low Medium Electronic Invoicing Option Comparison

27 Agenda  MFMP Overview  What is eInvoicing  Benefits  Methods to eInvoice  Ariba Supplier Network (ASN)  Return on Investment (ROI)  eInvoicing summary  Vendor Tools  Electronic Funds Transfer (EFT)  Automated Clearing House (ACH)  Resources  Contact Us Page - 27 Agenda

28 Page - 28 Ariba Supplier Membership  Electronically invoicing with MFMP is facilitated through membership in the Ariba Supplier Network (ASN)  The fee is only assessed if certain thresholds are met  Certified Minority Business Enterprises can apply to have the ASN Fees waived 1 http://www.ariba.com/suppliermembership/en/smp_pricing.cfm Ariba Supplier Membership

29 How to Register with ASN  Registering for the ASN allows vendors to create an electronic invoice online and send these invoices back to the state.  Basic Registration - Register at http://supplier.ariba.com and click on the "Register Here" button in the middle of the screen. Follow the on- line instructions. Note that basic registration requires a DUNS number. There are two ways to obtain a DUNS number:http://supplier.ariba.com  Online at http://www.dnb.comhttp://www.dnb.com  Over the phone by calling 1-888-814-1435  Additional information is available off of the vendor toolkit at http://dms.myflorida.com/business_operations/state_purchasing/myflori da_marketplace/mfmp_vendors/vendor_toolkit/ariba_supplier_network_ asn http://dms.myflorida.com/business_operations/state_purchasing/myflori da_marketplace/mfmp_vendors/vendor_toolkit/ariba_supplier_network_ asn Page - 29 How to Register with the ASN

30 Ariba Supplier Membership 1  Membership fees are based on the transaction volume:  Buyer-supplier relationships with over $100,000 USD in transaction volume and  15 or more documents  Fees are assessed as a small percentage (0.1%) of volume  Relationships with fewer than 15 documents or transaction volume of less than $100,000 are exempt from fees  Fees apply to only the first $10M USD in qualifying transaction volume for any relationship Page - 30 1 http://www.ariba.com/suppliermembership/en/smp_pricing.cfm Ariba Supplier Membership

31 Page - 31 Ariba Supplier Membership 1 Annual qualifying volume >$10M will NOT be charged Less than 1.2% of suppliers hit the cap of $10K 0.1%*$100,000 to $10M and 15+ documents sent FREE< $100,000 USD FeesAnnual Volume Per Buyer-Supplier Relationship Supplier Membership Program Fees Quick Reference Table: 1 http://www.ariba.com/suppliermembership/en/smp_pricing.cfm Ariba Supplier Membership

32 Page - 32 Example ASN Membership Fee Calculation Table 1 Volume Documents (POs & Invoices) Fee (USD) Company 1$25,00015$0 Company 2$99,99920$0 Company 3$150,000121$150 Company 4$1,000,0002,000$1,000 Company 5$7,000,0008,500$7,000 Company 6$250,000,00010$0 Company 7$250,000,000110$10,000 1 http://www.ariba.com/suppliermembership/en/smp_pricing.cfm Example ASN Membership Fee Calculation

33 Agenda  MFMP Overview  What is eInvoicing  Benefits  Methods to eInvoice  Ariba Supplier Network (ASN)  Return on Investment (ROI)  eInvoicing summary  Vendor Tools  Electronic Funds Transfer (EFT)  Automated Clearing House (ACH)  Resources  Contact Us Page - 33 Agenda

34 Page - 34 Return on Investment Using $20 per Invoice for manual paper processing and $5 per invoice for electronic invoicing (STP and PO Flip) we developed three case studies to identify possible savings based on Invoice volumes in MFMP. A case study was developed for each of the following:  High Invoice Volume / Large Company  Medium Invoice Volume / Medium Sized Company  Low Invoice Volume / Small “Mom & Pop” Company  Certified Minority Business Enterprise (CMBE) 2 Forrester: Best Practices: Invoice-To-Pay Process Automation, November 19, 2008 Inefficient manual processing can cost $20 or more per invoice, but companies can cut this to $5 or less using electronic invoicing 2 Return on Investment (ROI)

35 Page - 35 Return on Investment  Volume/ Spend Data  Invoices in FY 2008: 20,472  Total Invoice Amount: $5,597,350  PO Spend: $7,173,831  Estimated ASN Fees: $7,174  Invoicing Costs  Manual/Paper : $409,440  Electronic : $102,360  Estimated eInvoicing Savings  (Manual Costs- eInvoicing Costs) - ASN Fees = $299,906 High Invoice Volume / Large Company Return on Investment (ROI)

36 Page - 36 Return on Investment Medium Invoice Volume / Medium Sized Company  Volume/ Spend Data  Invoices in FY 2008: 802  Total Invoice Amount: $958,446  PO Spend: $1,204,160  Estimated ASN Fees: $1,204  Invoicing Costs  Manual/Paper : $16,040  Electronic : $4,010  Estimated eInvoicing Savings  (Manual Costs- eInvoicing Costs) - ASN Fees = $10,826 Return on Investment (ROI)

37 Page - 37 Return on Investment Low Invoice Volume / Small “Mom & Pop” Company  Volume/ Spend Data  Invoices in FY 2008: 126  Total Invoice Amount: $106,891  PO Spend: $111,994  Estimated ASN Fees: $112  Invoicing Costs  Manual/Paper : $2,520  Electronic : $630  Estimated eInvoicing Savings  (Manual Costs- eInvoicing Costs) - ASN Fees = $1,778 Return on Investment (ROI)

38 Page - 38 Return on Investment Certified Business Enterprise (CBE)  Volume/ Spend Data  Invoices in FY 2008: 758  Total Invoice Amount: $2,309,264  PO Spend: $2,483,620  Estimated ASN Fees: $0 (Waived $2,484 as a CMBE)  Invoicing Costs  Manual/Paper : $15,160  Electronic : $3,790  Estimated eInvoicing Savings  (Manual Costs- eInvoicing Costs) - ASN Fees  = $11,379 (Unwaived: $8,886) Return on Investment (ROI)

39 Agenda  MFMP Overview  What is eInvoicing  Benefits  Methods to eInvoice  Ariba Supplier Network (ASN)  Return on Investment (ROI)  eInvoicing summary  Vendor Tools  Electronic Funds Transfer  ACH  Resources  Contact Us Page - 39 Agenda

40 Page - 40  Page - 40 eInvoicing summary When deciding to eInvoice, consider:  How many invoices are created for orders with State of Florida Executive Agencies in the past year.  Determine if you are invoicing these agencies on a frequent basis and look at how many invoices were created during this calendar year thus far.  The cost of time, research, and production of print invoices for your customers. eInvoicing Summary

41 eInvoicing summary  To become an eInvoicing vendor:  Obtain a DUNS number  http://www.dnb.com http://www.dnb.com  Obtain an ASN account  http://supplier.ariba.com http://supplier.ariba.com  Contact MFMP to set up your trading partnership  vendorhelp@myfloridamarketplace.com vendorhelp@myfloridamarketplace.com  Start eInvoicing! Page - 41 eInvoicing Summary

42 eInvoicing summary Did you Know?  eInvoicing vendors are advertised on the MFMP website. Page - 42 eInvoicing Summary

43 Agenda  MFMP Overview  What is eInvoicing  Benefits  Methods to eInvoice  Ariba Supplier Network (ASN)  Return on Investment (ROI)  eInvoicing summary  Vendor Tools  Electronic Funds Transfer (EFT)  Automated Clearing House (ACH)  Resources  Contact Us Page - 43 Agenda

44 Page - 44 Electronic Funds Transfer (EFT) EFT (Direct Deposit)  When pairing eInvoicing with EFT, a vendor will receive funds substantially faster.  Direct Deposit enables all payment monies to be available on the desired payment date.  Advantages include:  Peace of Mind — No mail delays or lost check worries  Prompt Payment — Deposits will be available on the payment date  Convenience — Avoid special trips to your financial institution  Freedom — Your payment will be automatically deposited to your account Electronic Funds Transfer (EFT)

45 Page - 45 Electronic Funds Transfer (EFT)  To find out more about EFT, contact DFS:  Direct Deposit E-mail address: directdeposit@fldfs.comdirectdeposit@fldfs.com  Direct Deposit phone number (850) 413-5517  To sign up for EFT, complete and submit the form located here: http://myfloridacfo.com/aadir/dd_vendor.pdf http://myfloridacfo.com/aadir/dd_vendor.pdf  To receive funds electronically, please ensure your name on the Direct Deposit System and the name in your MFMP vendor registration account match directly.  At any time you can access DFS’ vendor payment Web site and look for a pending payment: https://flair.dbf.state.fl.ushttps://flair.dbf.state.fl.us Electronic Funds Transfer (EFT)

46 Page - 46 Automated Clearing House (ACH) 1 Percent Transaction Fee  The state instituted a 1 percent transaction fee to provide vendors with electronic access to state buyers and to provide vendor support. ACH  Similar to EFT, Debit Automated Clearing House (ACH) is another form of electronic payment.  ACH electronically transfers funds from your bank account to the MyFloridaMarketPlace account.  Vendors can sign up for ACH and pay the 1 percent transaction fee electronically.  To have your MFMP vendor transaction fee set up as an ACH:  Visit the vendor toolkit http://dms.myflorida.com/vendortoolkit and download the ACH form for vendors.http://dms.myflorida.com/vendortoolkit  Complete the form and e-mail it directly to the Department of Management Services (DMS). Automated Clearing House (ACH)

47 Agenda  MFMP Overview  What is eInvoicing  Benefits  Methods to eInvoice  Ariba Supplier Network (ASN)  Return on Investment (ROI)  eInvoicing summary  Vendor Tools  Electronic Funds Transfer (EFT)  Automated Clearing House (ACH)  Resources  Contact Us Page - 47 Agenda

48 Resources: MFMP Vendor Web pages  The MFMP Vendor Web pages include a vendor toolkit and additional information to assist vendors on a daily basis. http://dms.myflorida.com/business_operations/state_purchasing/myflorida_ marketplace/vendors Page - 39 Resources: MFMP Vendor Web pages Page - 48

49 Page - 40 Resources: Vendor Toolkit  The vendor toolkit includes:  Vendor Training opportunities  CBE (Certified Business Enterprise) Information  ASN (Ariba Supplier Network)  http://dms.MyFlorida.com/vendortoolkit http://dms.MyFlorida.com/vendortoolkit Resources: Vendor Toolkit Page - 49

50 Resources: Vendor Web pages  The Vendor Communication Bulletin Board displays vendor hot topics and the eNewsletter with focus on different, important subject matter, relevant to everyday business. Page - 41 Resources- Vendor Web Pages Page - 50

51 Page - 42 Frequently Asked Questions (FAQs) http://dms.myflorida.com/business_operations/state_purchasing/myflorida_ marketplace/vendors/vendor_frequently_asked_questions_faqs Vendor FAQ section specifically for ASN (Ariba Supplier Network) Frequently Asked Questions (FAQs) Page - 51

52 Agenda  MFMP Overview  What is eInvoicing  Benefits  Methods to eInvoice  Ariba Supplier Network (ASN)  Return on Investment (ROI)  eInvoicing summary  Vendor Tools  Electronic Funds Transfer (EFT)  Automated Clearing House (ACH)  Resources  Contact Us Page - 52 Agenda

53 Page - 53 Contact Us  Additional information about the ASN can be found http://www.ariba.com/suppliermembership/en/smp_pricing.cfm http://www.ariba.com/suppliermembership/en/smp_pricing.cfm  To register as an ASN vendor: http://supplier.ariba.comhttp://supplier.ariba.com  For technical questions concerning solicitations, please contact Vendor Help at: VendorHelp@MyFloridaMarketPlace.com or (866) 352-3776VendorHelp@MyFloridaMarketPlace.com  Web site: http://MyFloridaMarketPlace.comhttp://MyFloridaMarketPlace.com  Monday – Friday, 8 a.m. – 5:30 p.m., Eastern time  For questions about becoming a certified minority vendor, please contact the DMS Office of Supplier Diversity (OSD) at: OSDHelp@dms.myflorida.com or (850) 487-0915: OSDHelp@dms.myflorida.com  Web site: http://www.osd.dms.state.fl.ushttp://www.osd.dms.state.fl.us Resources

54 Page - 54 Resources  Today’s presentation is available on MFMP vendor toolkit  http://dms.MyFlorida.com/vendormeetings http://dms.MyFlorida.com/vendormeetings  Future teleconferences:  New content coming soon  Register at http://dms.MyFlorida.com/vendormeetingshttp://dms.MyFlorida.com/vendormeetings  Questions / Comments  Be on the lookout for a participant survey! Resources

55 Wrap-Up 55 Contact Us Team MemberE-mailPhone Number Communications Analyst Amy.Zeigler@dms.myflorida.com(850) 294-3080 F&A Process Analyst Anne.Rabon@dms.myflorida.com(850) 294-0739 Chief State Purchasing Operations Rachael.Lieblick@dms.myflorida.com(850) 488-7809 Vendor Management Analyst Eric.Swanson@dms.myflorida.com(850) 445-3894

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