1. Receiving: Critical to the PO Process Kristen Berning Purchasing Services

2. Agenda Refresher of receiving basics
Review of common questions and errors
Recap of fiscal year end 2015
Tips on how to monitor departmental receiving

3. Session Goals Articulate why receiving is important
Look at ways your cluster can streamline the receiving process
Learn how to prevent common issues
Troubleshoot common issues
Spark discussion with your teammates
Be proactive: monitor blanket/CPS POs

4. Why Do We Receive?
University policy decision to ensure internal controls:
Data integrity
Risk Mitigation:
Ensure suppliers are correctly paid
Ensure suppliers are paid only for the goods/services the University actually received
Separation of duties
Note: we do NOT receive U Market or VCPS POs

5. Procurement Life Cycle
Note: U Market & VCPS POs do not require receiving.

6. Receiving Roles and Access
EFS Role
Receive via: eProcurement>
Manage Requisitions
Receive via: eProcurement> Receive Items
Receive via: Purchasing> Receipts>Add/Update Receipts
U Market Requester No
Receiver
Yes
Requester
No* (would need receiver role, too)
Procurement Specialist
No* (takes them to Add/Update Receipts)

7. Receiving by Function Type of Order Receive via: eProcurement>
Manage Requisitions
Receive via: eProcurement> Receive Items
Receive via: Purchasing> Receipts>Add/Update Receipts
Who Can Receive?
POs created in the current fiscal year
Yes
Requester, receiver, procurement specialist
Rolled POs No
Receiver, procurement specialist
New lines added on PO (weren’t on requisition)
Assets
Procurement specialist

8. eProcurement>Receive Items
User sees ALL lines available for receiving on one page.
Once item(s) is selected, screen looks identical to Manage Requisitions receiving page, as the Manage Requisition page links directly to this page.
Common user comment: can be difficult to search if you are associated to many requisition preparers/receivers.

9. eProcurement>Manage Requisitions
Requisition preparer must use the proper search parameters to locate the requisition.
Data is grouped specific to a requisition rather than displaying all items available for receiving.
Once item(s) are selected, takes them to the same Receive Items receiving page.
Common user statement: three clicks/screens compared to two (if using Receive Items).

10. Purchasing>Receipts>Add/Update
User must know the PO number to start the receiving process.
Page does not default according to user’s associated orders.
Some users feel the screens are not as user friendly.
User is able to edit receipt via these pages as long as they do not reduce the receipt’s amount below the vouchered amount.

11. Business Process: Non Assets
A. Receive, Then Voucher
B. Voucher, Then Receive
Order arrives as expected.
Receiver verifies packing slip and/or invoice then receives.
Invoice is imaged in ImageNow.
Voucher specialist copies from PO/receipt and creates voucher and links it to invoice via ImageNow.
Invoice is imaged into ImageNow.
Voucher specialist creates voucher and links it to invoice via ImageNow.
Requisition preparer receives match exception notification.
Order arrives as expected.
Receiver verifies packing slip and/or invoice then receives.

12. Match Exceptions
Nightly voucher job runs to ensure there is a 3-way match between the PO, receipt, and voucher.
Goal is to have checks and balances.
Must be resolved or supplier will not get paid.
Timely resolution avoids missed discounts.
Receipt exceptions include:
No receipts found (prevents paying for items we did not receive)
Tolerance (prevents overpayments)

13. Example: Match Exception
Requester receives notification.

14. Receiving Assets Business Process
Requester/department gives completed UM1681 form to procurement specialist.
Procurement specialist receives in EFS.
Form gets imaged with invoice and linked to voucher via ImageNow.
Inventory Services queries for asset vouchers and finds UM 1681 form linked to voucher.
Inventory Services completes capitalization process in EFS.

15. Most Common Help Tickets
Majority of the callers ask: “Why can’t I receive? I don’t see any lines.”
Key troubleshooting themes:
Security Access:
U Market requesters cannot receive
Regular receivers cannot receive assets
Requisition preparers cannot access the core Purchasing>Receipts>Add/Update page
Purchase Order Inquiry Page:
Review PO status
Verify information for each PO line
Links to other information via Document Status feature

16. Invalid PO Status
Since the Upgrade, PO change orders route, making the PO in pending status.
Cannot receive: closed, pending, approved, open, sent back, complete, or canceled POs.
POs must also have a valid budget.
Navigate to: Purchasing>Purchase Orders>Review PO Information>Purchase Orders to see the header status.
Work with the procurement specialist; or approver(s) if the PO is in pending status.

17. Encumbrances
The caller sees an encumbrance balance on the PO Inquiry page and believes there is still money to receive.
Encumbrances are tied to vouchers and the merchandise on PO—not receipts.
Any amount added in the freight, taxes, or other expense fields on the voucher entered by the voucher specialist do not affect the PO’s encumbrance balance.

18. PO Inquiry Page

19. PO is Fully Received
Many times someone else already received it or the person forgot they received it. If it is fully received, no lines will appear.
Use the PO Interface or Document Status pages to total all receipts associated to the PO. (Ex: PO Interface page)

20. New PO Lines
Whenever a new line is added onto the PO, it must be received via the Purchasing>Receipts>Add/Update page.
If the receiver is receiving via either of the two eProcurement receiving pages, no lines will appear.
Since the line was not on the requisition (created in eProcurement module) but was added on the PO (in the Purchasing module) there is no connection to the line via eProcurement pages.

21. Rolled POs
Whenever a PO rolls into a new fiscal year, it must be received via the Purchasing>Receipts>Add/Update page.
If the receiver is receiving via either of the two eProcurement receiving pages, no lines will appear.
Rolled POs need to be received in the Purchasing module, not eProcurement. This is because we finalize the requisitions, ending the tie to the PO via the eProcurement module.

22. Quantity Instead of Amount
Requisition preparers think that if they use “LOT” on a standard purchase (general PO), it will receive by amount.
Requisitions can be created using “amount only” receiving (see job aid).
Procurement specialists can change the PO line to amount only as long as it hasn’t been received or vouchered.

23. Wrong Category or Account
If the item was incorrectly categorized (e.g. should be an asset), the PO must be changed before it is received or vouchered.
Assets must be appropriately recorded.
The procurement specialist must make this change directly on the PO.
These changes will route for approval.
Reminder: non PO vouchers and journal entries cannot include assets (e.g ).

24. Freight There is no req/PO category for freight.
Requester enters freight details in “comments” where it can be seen at the voucher level.
University’s business process is to add freight on the voucher.
Do not add new lines to the PO just to mirror then receive what is on the invoice.
Freight charges entered on the voucher do not affect encumbrances.

25. Blanket or CPS POs
These recurring orders typically have multiple lines that have different accounts or categories.
Supplier invoices can be challenging to decipher because they list everything and use their own process for billing.
Freight and tax charges: ensure the voucher and receipt are consistent.

26. Receipt Errors Make POs Ineligible for Rolling
PeopleSoft does not allow any discrepancies when rolling into the new fiscal year. Here is an example:

27. Fiscal Year End 2015
Almost 1,000 POs were force closed by Purchasing Services due to receipt-related errors.
Specific receipt-related errors:
POs with partial receipts (700+)
Receipts with open quantities or amounts remaining after they were vouchered
Ex: $ was received and $ vouchered; Ex: 9 received, 7 vouchered
Invalid budget status (150)
Receipts with a negative value (Ex: Credit invoice received as a negative number by receiver)
Encumbrance discrepancy (Ex: $90 item and $10 freight was invoiced. Receipt was for $100; voucher line was for $90 and $10 added in the freight field)
Receipts partially vouchered (100)
Receipt was not associated to a voucher
Ex: Believed receipt qualified as “activity” and received it but didn’t pay it

28. Be Proactive: Monitor Your Cluster
FYE queries can be run at any time.
Need EFS Query Manager access.
“Procurement Specialist Training Grid:

29. Partial Receipts: Be Proactive
Run Query UM_DPO_YE_PARTIAL_RECEIPTS
Locate and research items on list.

30. Resource: PO Interface Page
Monitor blanket and CPS-related activity.
Accounts Payable>Review Accounts Payable Info>Interfaces>Purchase Order

31. Resolving Receipt Issues
Receipts do not have a monthly close period so can be edited up until FYE cutoff.
Common misconception: “It’s too late: the voucher posted and paid out.”
Receiver or procurement specialist can go to: Purchasing>Receipts>Add/Update Receipts page to correct the data entry error.
Receipts can be edited as long as they don’t go below the amount that was vouchered.

32. Conclusion: Best Practices
Establish clear roles and responsibilities for receiving to prevent errors and missed payments.
Receive accurately and timely; do not over receive.
If it’s not right on the receiving page: don’t receive!
Discuss how your cluster will deal with common “gray areas” such as freight, credits, and taxes.
Establish routine monitoring of match exceptions and partial receipts to catch those that cause errors.
Run queries at fiscal year end and resolve errors by cutoff. Anything falling on the FYE queries will close.

33. Resources University Financial Helpline finsys.umn.eduor
Purchasing Services
purchasing.umn.edu
Kristen Berning, Sourcing Specialist