Invoice Reconciliation Training

Invoice Reconciliation Training
MyFloridaMarketPlace Train-the-Trainer Invoice Reconciliation Training 1

Agenda Basics Creating an Invoice eForm Defining & Creating an IR
Reconciling an IR Approving an IR Disputing an IR Change Orders to Update Accounting Helpful Processing Tips Various FA eForms Failing FLAIR Integration Page - 2

Basics - Defining Roles
With the Requester group, customers will have the ability to: Create and Submit a Requisition Initiate change orders Initiate receipts against their orders Create and Submit an Invoice eForm Search and copy their purchase orders Create folders and file items within them With the Invoicing group, customers will have the ability to: Edit all accounting fields Reconcile, Approve and Reject Invoice Reconciliations Conduct agency-wide searches for Requisitions, Orders, Invoice Reconciliations, etc. Page - 3 3

Basics - Creating an IR There are two ways an IR is created:
Invoice eForm (Agency creation) Using the paper invoice, the invoice is entered into MFMP by the agency A scanned image of the invoice is a required attachment and attaching supporting documentation is recommended Electronic Invoice (Vendor creation) Also known as a PO flip or ASN invoice Vendors have the ability to submit invoices electronically A paper copy of the invoice is not needed Note: An invoice eForm can be copied, if you are inputting multiple invoices from the same vendor. Look up the original INEF choose copy, then retrieve the copy from your composing folder. Update information, including the invoice number, title, and accounting information and submit. Page - 4

Defining an Invoice Reconciliation
Advantages of Electronic Invoicing An Invoice eForm will not need to be created No need to scan attachments Reduce invoice data entry requirements for State Agencies Vendors will be notified systematically if an invoice is rejected and will see the comments that the agency includes as to the reason for rejection Reduction of paper flow Improved data accuracy (no keying mistakes) Disputed line item comments will be transmitted to the vendor Page - 5 5

Currently Utilizing e-Invoicing Office Depot BSD Grainger Industrial Supply Dell Marketing Hayes E-Government Resources Lewis Digital, Inc. Gulf Ice System Computer Tutors USA Stanbio Laboratory VF Imagewear Marpan Supply Company, Inc. Colamco, Inc. Sysco Foods MSC Industrial Supply Leitz & Reed Office Products, Inc. Current list of all eInvoicing vendors is available on the MFMP Toolkit All vendors who are registered for the ASN have the possibility of electronic invoicing. The MyFloridaMarketPlace team is working with high-volume vendors, but you can also encourage vendors who work specifically with your agency to explore electronic invoicing. All transactions from all agencies will be handled in the same way (paper or electronic invoicing). MFMP will provide a list of vendors who are participating in electronic invoicing Page - 6 6

Basics – Confidential Information
If confidential information is attached to the IR a Confidential Information Removal Request Form must be completed and submitted to the Customer Service Desk by the appropriate agency liaison For more information on your Agency’s Confidential Policy, contact your agency MFMP Security Administrator Further information on Scanning and Attachment Guidelines can be located in the MFMP Toolkit Scanning & Attachment Guidelines Scanning and File Attachment Guidelines .doc Confidential Information Purging Confidential Information Purge Request Process PUR Confidential Information Purge Request Form

Agenda Basics Creating an Invoice eForm Defining & Creating an IR

Creating an Invoice eForm
From either of these links you can select a variety of eForms including the Invoice eForm Page - 9

Select Invoice eForm to create an Invoice Reconciliation. Depending on your assigned groups you may have additional eForms Page - 10

Enter an appropriate Title following your agency’s standard titling convention. This field allows numbers, letters, and special characters Supplier Invoice # field can contain a maximum of 30 characters, and becomes part of the IR #. The last 9 digits will be sent to FLAIR and will be recorded on the warrant so the number should reflect the vendor’s invoice. Should a number not be provided please refer to your agency’s practices. Note that the system will detect duplicate invoice #’s. Page - 11 11

Supplier Invoice Date: This is the date printed on your vendor invoice Invoice Received Date: Record the date the invoice was received by the office notated in the Bill To section of the purchase order Services Start Date & Services End Date: DFS requires that services start and end dates are entered for all services invoices. Use the dates for the invoice being processed Page - 12

Select the Vendor Location by clicking on the drop down box This must be the exact Vendor Location that is on the purchase order The last five vendors will be displayed. If the vendor you need to invoice is not displayed, select other Page - 13

When you locate your vendor, press the Select button To choose a vendor, type in your vendor’s name and click Search Click the dropdown to change your search options. The headers correspond to the available search options When you have multiple returns, you can sort by the header column of your choice Page - 14

Creating an Invoice Reconciliation
Supplier Name will populate with the Vendor Location choice Enter the total amount of the invoice in the Subtotal field Press the Next button to select an Order to invoice against Page - 15

. Invoicing without Order/ Release?: For invoices against orders select “No”. For invoices directly against a contract (MA###), select “Yes” Purchase Order: Press the select button the search for your Order Page - 16

Once you have found the correct Order, press the Select button If you have selected the wrong vendor location, the purchase order will not return. Page - 17

Once the Order has been selected. Press the Generate Invoice button to display all the lines of the order

Enter in the quantity and amount that is being invoiced Note: Ensure the appropriate line number is in the Line # box, or it will become an unmatched item on the IR If your order has multiple lines and you are not invoicing against the entire order, check the item that you’d like to delete and press the Delete button Page - 19

Press the Next button to complete the invoice If another line item needs to be added (i.e. for shipping), you can add a new line item which will need all information to be populated NOTE: Although you have the option to copy a line item, it is not recommended Page - 20

To add a copy of the invoice as required by DFS, or any other attachment: Read the disclaimer and Check the checkbox indicating your compliance Click the Add Attachment button Review the eForm for accuracy. If no changes are necessary, press the Submit button to create your IR

Practical Exercise 1 & 1a You will be completing Practical Exercises 1 and 1a at this time If you have questions, please let the instructor know Page - 22 22

Agenda Basics Creating an Invoice Reconciliation Defining an IR

Exception Handler Normally the first F&A Approver Responsible for reconciling all exceptions Ensures that the invoice matches to the terms of the order Ensures goods were received or services were approved Ensures that the transaction date is accurate Invoice Manager Ensures the invoice should be approved Ensures that the transaction date is accurate Last agency approver of the invoice FLAIR username and password are recorded in FLAIR when the IR is approved If DFS returns the IR for additional information, the Invoice Manager is added to the approval flow Page - 24

An IR is created when an invoice eForm or eInvoice (electronic invoice) is submitted and MFMP matches it to its purchase order and receipt Discrepancies or differences are listed on the IR as exceptions MFMP handles services differently than commodities MFMP performs a 3 way match for commodities: invoice compared to the order and the receiving report MFMP performs a 2 way match for services: invoice compared to the order All exceptions must be reconciled before the IR can be approved for payment Page - 25

Invoice eForm On Behalf Of (OBO) Exception Handler Invoice Manager DFS Audit (if applicable) FLAIR Services invoices require the requester to approve the invoice prior to the Exception Handler By approving the IR, the requester is approving that the services were received A Order with a “9” series commodity code is an order for services Page - 26

Invoice eForm Exception Handler Invoice Manager DFS Audit (if applicable) FLAIR Commodity invoices are routed to the Exception Handler (or F&A Gatekeeper) for approval first OBO’s do not need to approve the invoice prior to approval by the F&A Office OBO’s approve the payment by documenting the goods were received via the receipt process Page - 27

Agenda Basics Creating an Invoice Reconciliation Defining an IR

Reconciling an IR Typical Audit Steps MFMP Audit Steps
Receive invoice Compare invoice to terms in contract document Verify receiving report/ services were approved Approve invoice Key into FLAIR MFMP Audit Steps The IR will pre-audit your invoice against the order and receipt (if a commodity) All exceptions/discrepancies will be displayed and you will be required to reconcile and resolve these Reconciling is “auditing” the invoice By approving the invoice, you are bypassing the requirement to enter the information into FLAIR Page - 29

Reconciling an IR From your Reconcile queue in the shortcut menu, you can see the invoices that require your attention. Notice that the number displayed shows how many items are pending your approval Page - 30

Reconciling an IR You can group items by status, supplier, etc. to assist in prioritizing your work By Clicking the Table Options Menu, you can Show / Hide fields, Group, and/or Export to Excel within your queue NOTE: The IR number is comprised of two parts: the invoice number that was entered on the invoice eForm (eInvoice) and a 7 digit sequence number When referring to the IR, use the sequence number Page - 31

Reconciling an IR Choose the IR that you are going to work on by
Placing a check in the box and click on Reconcile/Approve Click on the ID link The status of the IR indicates what state the item is in: Approving status means the IR has been reconciled and requires approval Reconciling status means the IR requires reconciliation Page - 32

Reconciling an IR Once the IR is created, MFMP will conduct a match against the order, invoice, and receipt (if applicable) The discrepancies will be listed as exceptions and will be shown as Header Level and/or Line Level Exceptions Click on the Exception to obtain the details of the variance Page - 33

Reconciling an IR Header Level Exceptions: Exceptions for the entire invoice Amount Variance: The total cost of the invoice is different than the total cost of the purchase order. This variance will occur when you have a partial payment for an order Auto Reject Amount Variance: The invoice's amount, $ USD, does not match the purchase order's amount, $ USD Invoice Reconciliation Already Exists: An Invoice Reconciliation with the same Invoice Number and Supplier already exists. This could be a result of the vendor having already sent an electronic invoice. *This is not a common Exception If this occurs, the IR will be placed into auto-reject status When an Invoice Reconciliation is auto-rejected, it causes agency Exception Handlers and Invoice Managers to have to clear the Exception before processing the Invoice Reconciliation, which provides agencies with an opportunity to confirm whether the invoice has in fact been duplicated, and reject the Invoice Reconciliation from the system PCard Order: Invalid Invoices created from PCard orders are not accepted Page - 34

Reconciling an IR Line Item Exceptions: Exceptions for a line
Accounting Verification Exception: Every IR will have this exception. Accounting information must be verified before accepting this exception Quantity Variance: The quantity on the invoice line item is different from the quantity left to invoice on the order line item Price Variance: The price on the invoice line item is different from the price on the order line item Received Quantity Variance: The quantity field on the invoice line item is different from the quantity left to invoice on the receipt line item Page - 35

Reconciling an IR The Exception Details define what the exception is
Notice the Received Quantity Variance between what has been received and what has been invoiced Page - 36

Reconciling an IR An IR is comprised of 6 components
Exceptions: Performs the match and displays the discrepancies Approval Flow: Defines who is required to approve and who has approved Invoice: Details the invoice Order: Offers direct access to the purchase order Receipt: Captures all receiving reports (If PO is for service, this tab will be blank) History: Details and records all activity on the IR Page - 37

Reconciling an IR Validate the Transaction Date. This date is used to calculate your prompt payment compliance MFMP selects the date based on the information that is available in the system at the time the IR is generated If the receiving report has not been created, MFMP will not take the received date into consideration View the receipts tab to see when the commodity was received Page - 38

Reconciling an IR IR matches items to the line item of the order
Page - 39

Reconciling an IR You can click on the Invoice eForm link to view the scanned invoice attachment If the invoice was received electronically the Invoice eForm link will not be available The purchase order’s amount reflected here indicates how much is left to bill on the invoice. This does not reflect any IR’s in Reconciling or Approving Status Page - 40

Reconciling an IR Remember:
An IR will escalate if it has been pending in a “CUSTOMER” queue for 10 business days. Items pending a role do not escalate. If you have a business need to have another approver review the IR, you can manually Add an Approver Page - 41

Reconciling an IR The Invoice Tab displays all information from the Invoice eForm or electronic invoice Accounting information can be viewed on the invoice tab. This is the accounting information from the order. If you’ve changed the accounting information on the Exceptions tab, the changes will not be reflected here Page - 42

Reconciling an IR All IRs in Paid status will be tracked including IRs Marked Paid in FLAIR Invoice Reconciliations in Reconciling, Approving, or Rejecting status will not be recorded as part of the payment history Cancelled warrants can also be tracked and recorded Page - 43

Reconciling an IR The PO Balance shows the current remaining balance of the order. It is drawn down after IRs are in Paid status (This will be accurate only if all payments are made in MFMP) Paid IRs will be tracked in the Payment Details Page - 44

Reconciling an IR The Line Items will reflect a cumulative history of the order including how many items were received Page - 45

Reconciling an IR All receipts will be tracked on the Receipts Tab
If only one receipt is displayed and it is in composing status, no Receipts have been completed If a receipt is completed while the IR is processing, this will not change the exception on the IR. The Transaction Date will not automatically update, you will have to adjust it as appropriate If there are no receipts shown on the receipts tab (nothing in composing), this is an order for a Service Orders’s for services do not require receipts You can review any receipt by clicking on the Receipt ID Page - 46

Reconciling an IR Negative Receipts can be entered to correct receiving errors. Comments are not required, but are a Good Business Practice

Any comments made can be viewed via a link under the Summary column
Reconciling an IR Any comments made can be viewed via a link under the Summary column The History tab tracks all changes/edits made on the IR. All customers who make changes to the IR will be logged here Click the Edited link to see the fields that were edited Page - 48

Reconciling an IR History details show each field that was changed or edited by user Note: Only the object code was changed in this example, however, this caused multiple fields to update with new information

Reconciling an IR Once you have audited the invoice and resolved all the exceptions, you’ll need to review and verify the accounting information. Check the box by the line to be updated Click the Edit button to view the accounting information Page - 50

Reconciling an IR The information on the accounting details page, is the accounting information from the order/contract As an F&A approver, you are responsible for validating that the information is accurate Page - 51

Reconciling an IR If this IR will be made using payable funds, check the Payable Disbursement box. Once checked you will be directed to enter in a payable number and payable line # If the IR is the final invoice for the order, you can click the Final Payment Indicator to final out the encumbrance line in FLAIR. (This is used for encumbered transactions only) If you do not have funds but still require the payment from this account, you can override the transaction in FLAIR by checking the Available Balance Override Indicator. You will need to have the MFMP ABOI Group and the appropriate permissions in FLAIR (For lines with split accounting, the ABOI field will have to be updated via the Split Accounting option) Page - 52

Reconciling an IR If the funds were encumbered, the Encumber Funds box will be checked and an encumbered disbursement transaction (TR 70) will be sent to FLAIR If you need to process the IR as unencumbered, uncheck the box. MFMP will send an unencumbered transaction (TR51) to FLAIR The Encumbrance Number and Encumbrance Line Number fields indicate the encumbrance number that is recorded in FLAIR. If you are processing an invoice against a contract that was encumbered, the encumbrance number will be reflected in the Contract Encumbrance Number and Contract Encumbrance Line Number fields Page - 53

Reconciling an IR Grouping Character: If your agency uses Grouping Characters enter it here Certified Forward: If the Order should be certified, this box should be changed to “C” and can be changed on the Requisition or IR Description: Limited information can be entered here and will appear in the Description field in FLAIR. (This can also be completed on the requisition and will carry forward to the IR.) To split the disbursement across different accounts, funds, org, etc. Click the Split Accounting button Page - 54

Reconciling an IR You can split the transaction by amount, percentage, or by quantity You’ll need to allocate the split Page - 55

Reconciling an IR The line number indicates the split number
As you scroll down the page, update the accounting information and allocate the split as appropriate If a split is created in error you can press the Delete button Page - 56

Reconciling an IR MFMP will track your allocation; you will only be able to move forward if the allocation is 100% Press the OK button to save your changes If need to add an additional split, click the Add Split button Page - 57

Reconciling an IR If you cannot resolve an exception you can mark it as Cannot Resolve When you mark a line as Cannot Resolve, the status will be updated appropriately Page - 58

Reconciling an IR You should refer the IR to another customer for reconciliation. For example if you need assistance you may want to refer your IR to your supervisor Comments are not required, however, they are a Good Business Practice and are encouraged Page - 59

Reconciling an IR If, when the invoice eForm was created, an incorrect line from the order was selected you can change it by using the Manual Match function Page - 60

Reconciling an IR This line is matched to line 2 of the order. You can change this by Selecting a new line. Page - 61

Reconciling an IR Select the appropriate order line item to match the invoice line to Page - 62

Reconciling an IR If you’ve reviewed the invoice, reconciled the exceptions and agree that this invoice should be approved, Accept the exception You will need to accept the Header Level Exceptions as well as the Line Item Exceptions (this is done in two steps) Page - 63

Reconciling an IR Once the Header Level and Line Level Exceptions are accepted, you will receive this message When all exceptions have been reconciled, Submit, Reject or Refer the IR as appropriate Page - 64

Reconciling an IR If you need to process the payments directly in FLAIR (i.e. JT payments), you’ll need to mark the Payment Completed in FLAIR checkbox Once Payment is completed in FLAIR, you should complete a Payment Update eForm to record your payment information into MFMP Page - 65

Practical Exercise 2 & 2a You will be completing Practical Exercises 2 and 2a at this time If you have questions, please notify the instructor Page - 66

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