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!

What We’ll Cover Today Non-PO Invoicing Change Orders 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 Change Order Process Overview Requirements for change order integration Integration Details Recent Improvements Best Practices for change order processing Frequently Asked Questions

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?

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”

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

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 Supplier Supplier Account Number Invoice Owner Business Unit or Department

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

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

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

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

Change Order Integration

Change Order – New Integration Point SciQuest PO Revision Initiated by user IFEP Automatic creation of Banner Change Order Banner Change Order validated and posted Revised PO sent to supplier This graphic depicts the conceptual flow of the Change Order integration . Quick comment about “jargon”. SciQuest uses the term “PO Revision” which equate to Change Order in Banner. For starters, if you are familiar with the process flow of the Purchaser Order integration point, it should come as no surprise that the business process for a Change Order is very similar, since the Change Order is an “ amendment” to the original Purchaser Order. The key is that the SciQuest user may initiate a “change” once it is determined that original PO needs to be modified Examples may be a change in quantity, unit price, shipping location, or the accounting distribution. Recognizing the need, a SciQuest user does a “PO Revision” , which is the starting point. Once the PO Revision is finalized in SciQuest, a Change order request message is published and sent to FEP middleware. The middleware evaluates the inbound request and sends on to Banner Finance. Just as the original PO was validated in Banner before it was created, so too is the Change Order. Following validation , the PO is posted to Banner. The Posting Process published a success message an status update message back to SciQuest. The messaging paradigm always includes a responsibility to keep the parties in the messaging informed. So, this is a great example of a important status update. After SciQuest processes the PO Update message, the PO Workflow continues with the dispatch of the Revised PO to the supplier The business value in this is that the entire process can be done in a matter of a few minutes - from the recognition that the PO needs to be amended or revised, to the messaging to Banner, the posting in Finance, the update back to SciQuest and the ultimate goal – the holy grail of Change Order processing- is getting the revised PO to the supplier. At this point, both SciQuest and Banner records are in agreement and the supplier has been notified. The “task” was only performed once, in the SciQuest system.

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

Change Order Integration Details PO Revision User needs specific permissions The PO must be totally approved in the SciQuest PO Workflow Authorized user performs “Finalize Revision” IFEP Middleware Middleware determines that the PO Revision is a change to an existing PO Finance Validations Finance API’s validate that the PO is eligible to be changed PO must be open, not canceled PO Must be posted Items to be changed must be open Encumbrance fiscal year must match PO Revision transaction date Finance Posting Completed and approved Change Order is posted to ledgers Posting process publishes a status update message Dispatch to Supplier SciQuest updates status to “posted” and dispatches the revised PO PO approvals completed PO now eligible for further revision

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

Changes Sent to Banner From SciQuest 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

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

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.

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.

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?

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.

Change Order Integration Gaps The following are known issues that we are currently working together with Ellucian on: 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

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

Release 14.1 Enhancements – AP Reports

Release 14.1 Enhancements – AP Reports

Release 14.1 Enhancements – AP Reports

Frequently Asked Questions What was the first version of SciQuest to offer this? 12.3 which was released November 4, 2012 What Banner releases must we be on? Banner Finance 8.8 Integration for eProcurement (IFEP) middleware version 8.2 What can be changed on the PO? You may change quantities, prices, ship to locations, and FOAPAL elements Does the change order get sent to the supplier? 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? No, the change order flows through PO workflow

Additional Q & A

Thank You! Derrick Graham dgraham@sciquest.com Jim Arlington jarlington@sciquest.com