Procurement to Invoice Jim Boyer Sr. Consultant
Making it all work together Invoicing Receiving Purchasing
Control Accounting Materials Management Materials Management Or Associates Requisition and Order ReceiveVoucherPay
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 Terms are active in IFM and Purchasing VendorOrderInvoice
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 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’
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 InventoryReceipts Not Invoiced Invoice Clearing Accounts Payable Price Var. RP 100 AP 125 CA 100 CA 125 CA 25 Standard = 100 Invoice = 125
Invoicing Benefits –Pay PO Price –Pay for Received Quantity –Match Invoice to Inventory Receipt –Minimize Effort
Accrual 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 Approve Order Receive Invoice Request
Return to Sender Purchasing Debit Memo To IFM A/P Debit
Return to Vendor VR Transaction in IM Update PO Line item Data Post into IFM Reduce Payments
Return to Vendor RPPurchase Receipt PQPurchase Quality Receipt RQReject & Return For Quality VRVendor 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
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!