Tuesday, May 10, :00 -11:30 am P2P School / Unit Representative Meeting

Agenda Project Timeline Update Heads-Up Procurement – Decisions Accepted Procurement – Decisions Proposed/Pending Receiving Decision Points Requisition Approval Rule Decision Points Future Process Validation –Requisitioning- Departmental Approvals Procedure –Requisitioning- UPS Approval Procedure –Purchase Order Change / Cancel Procedure Future BPR - Status, Change Impacts, Major Deltas, and Benefits Next Steps 2

3 Conduct SciQuest Focus Group 2 – May 18 Validate Key Future State Processes with Business Advisory and School Unit Reps – April & May 2016 Conduct System Demonstration/ Mini Roadshow with Business Advisory and School Unit Reps – June 2016 P2P System Testing – May through July 2016 P2P & Expense Roadshows at each campus – July 2016 P2P System Training – July through September 2016 Heads-Up

Project Timeline Update 2016 ActivityMarAprMayJunJulAugSepOctNovDec ePro Focus Group Accounts Payable Focus Group Procurement Focus Group Future BPR Documentation Testing Training Business Advisory Group Meeting School / Unit Representative Meeting P2P and Expense Campus Roadshow

5 DecisionRationaleWhat it Means Units will have two independent workflow steps available in support of routing requisitions for approval: "Primary" and "Secondary". All requisitions have to be routed for at least one "Primary" review. The "Secondary" workflow step is optional. Some departments have requested the ability to route requisitions for an initial operational review and then a second business office review. Having a primary and secondary approval step provides departments flexibility in how the route requisitions for review within their organization. The following criteria will be used to route requisitions for approval: amount, the requisitions specified unit, division, organization, and fund type. Using the requisition's specified unit, division, organization, and fund type allows for transactions to be routed to the individual(s) responsible for managing the budget of the selected source of funds. Business managers will be responsible for identifying the individual(s) who will review requisitions for their unit's funding sources. For the primary workflow step, units can specify approvers in the following dollar thresholds for each unit, division, organization, and fund type combination: all dollar amounts, between $0 and $5K, between $5K and $10K, and over $10K. Each unit, division, organization, and fund type combination has to have at least one approver for either all dollar amounts or each of the three specified dollar ranges. This approach allows business managers to specify one or many approvers for requisitions. Business managers will be responsible for identifying the individual(s) who will review requisitions for their unit's funding sources within the various dollar thresholds. For the secondary workflow step, units can specify approvers in the following dollar thresholds for each unit, division, organization, and fund type combination: all dollar amounts and over $50K. Utilization of the secondary approval step is not required. This approach allows business managers to specify one or many approvers for requisitions. Business managers will be responsible for identifying the individual(s) who will review requisitions for their unit's funding sources within the various dollar thresholds. Procurement – Decisions Accepted

6 DecisionRationaleWhat it Means Any invoice associated with a purchase order line over $5,000 for non-capital assets will require approval by the "prepared for" of the corresponding requisition. Invoicing against PO lines over $5K requires approval prior to payment. Departments will need to implement business processes to ensure the appropriate individual is listed in the "prepared for" of the requisition. Any invoice where all associated purchase order lines are under $5,000 and are not capitalized will not require approval by the "prepared for" of the corresponding requisition. Instead, the "prepared for" will receive notification of the impending payment. Invoicing against PO lines under $5K does not require approval prior to payment. Departments will need to implement business processes to ensure the appropriate individual is listed in the "prepared for" of the requisition. In addition, the "prepared for" can contact AP to stop the payment from being distributed to the supplier. Any invoice associated with a purchase order line for capital assets will require a receipt in SciQuest prior to payment being authorized. Confirmation of receipt is required for all capital assets prior to payment. If a receipt is not in the system when then invoice is processed, the "prepared for" of the requisition will receive a notification requesting they confirm receipt of goods and services. Other individuals can create the receipt, however, SciQuest can only be configured to notify the "prepared for" of the corresponding requisition. Procurement – Decisions Accepted (continued)

7 DecisionRationaleWhat it MeansNext Steps Utilize preparer approval of invoices for services above a TBD threshold Provides invoice payment authorization for non- quantity-based POs. Approval will be routed to preparer of the underlying requisition. Need to confirm dollar threshold above which approval will be used. Require payees to be set up in the eProcurement system prior to submitting check requests Aligns the RBHS and Rutgers business process RBHS departments will need to adjust their internal business processes to account for the gap between when the request to create the payee is submitted and when the supplier is available in SciQuest Inform departments of change in business process Requests for RFx events will now originate in SciQuest utilizing the electronic RFx Request Form. Initiating requests for RFx events allows for standardization of processes and a single mechanism for UPS to manage in support of the campus community's procurement needs. Departments requesting RFx events will have better visibility of the status of their request. Inform departments of change in business process. Procurement – Decisions Proposed/Pending

8 DecisionRationaleWhat it MeansNext Steps The Data Security Questionnaire will be a contract template in SciQuest's Total Contract Manager module and will be ed to the supplier from the system. Once completed, uploaded, and executed the questionnaire will be available for end-users to search for in the contract repository. This approach provides a single repository for Data Security questionnaires for both units and UPS. Units will have easier access to completed forms, reducing the time required to obtain forms. Inform departments of change in business process. Adjustments to a PO will be done via the new PO Change/Cancel Form in SciQuest. SciQuest does not have a robust mechanism for purchase order owners to initiate changes to their orders. UPS will be responsible for making the requested changes on behalf of the PO owner. Inform departments of change in business process. Procurement – Decisions Proposed/Pending (continued)

9 Document Amount Receiving RequirementsInvoice Approval Requirements PO Line Amount Less Than $5,000 None Payment Notification Only PO Line Amount Greater Than $5,000 – Non-Capital Expense NoneInvoice Approval Required Capitalized Assets* Receiving Required None Payment Notification Only Proposed Future State Matching Process * SciQuest can also be configured to require receipt for non-capital expenses as required (e.g., live animals)

Requisition Approval Rule Decision Points 10 Items for discussion: –“Between” requisition routing rules –Dollar thresholds Primary Approvals: “any”, between $0 and $5K, between $5K and $10K, and over $10K Secondary Approvals: “any”, over $50K –Using the Fund Type chart of accounts segment as a fourth criteria for routing requisitions

Approval Matrix 11 UnrestrictedPrimary Approvers Secondary Approvers UnitDivisionOrg All Dollar Amounts Between $0 and $5K Between $5K and $10KOver $10K All Dollar Amounts Over $50K Approver A Approver I Approver BApprover CApprover J Approver DApprover EApprover FApprover KApprover L Approver G Approver H

Using the Fund Type Chart Of Accounts Segment As A Fourth Criteria For Routing Requisitions 12

Using the Fund Type Chart Of Accounts Segment As A Fourth Criteria For Routing Requisitions 13 UnrestrictedPrimary Approvers UnitDivisionOrgFund TypeThresholds Considerations –Using the agreed upon additional segment would be optional. However, if one rule is created with the additional segment, rules must created for all unique combinations of the four segments –Departments have to provide transaction level combinations; roll up values can not be accommodated

14 Requisitioning- Departmental Approvals Procedure Need Update from Jeff G.

15 Requisitioning – UPS Approval Procedure

16 Purchase Order Change / Cancel Procedure Need Update from Jeff G.

17 Future BPR - Status, Change Impacts, Major Deltas, and Benefits Functional Category Future State Process Change Management Impact / Major Deltas from Current Process Benefits Requisitioning Requisitioning - Departmental Approvals Departments have to take an active role in managing their departmental requisition approval hierarchy UPS must manage approval rules/hierarchy in SciQuest Need a process for requesting changes to approval hierarchy Electronic approval routing Flexibility to have a single departmental approval or add a secondary approval Increased visibility to the status of the request Requisitioning Requisitioning - UPS Approvals UPS must be trained on approving Requests via SciQuest Electronic approval routing Increase visibility as to the status of the Goods or Services request Order Management PO Change/Cancel Process Legacy Rutgers can close/cancel PO’s today but will have to use the SciQuest Form in the future. One place to electronically initiate both Modifications and Cancels Buyers will perform line cancels and decrements One electronic form to complete to modify or change/cancel PO Improved visibility into the status of PO modification/change/cancel requests No need to validate the change in the ERP

18 Conduct SciQuest Focus Group 2 – May 18 Complete P2P Future State Business Processes – May 27 Validate Key Future State Processes with Business Advisory and School Unit Reps – April & May 2016 Conduct System Demonstration/ Mini Roadshow with Business Advisory and School Unit Reps – June 2016 P2P System Testing – May & June 2016 P2P & Expense Roadshows at each campus – July 2016 P2P System Training – July through September 2016 Next Steps