Procurement to Invoice

Jim BoyerSr. Consultant

jim.boyer@cistech.net

Making it all work together

Control

Why?

AccuracyControlEfficiencyAttainment CostingPerformance

•The Goal

Procure to Invoice

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 OrderValidate / Authorize PricingValidate Tax RulesValidate Unit / NatureAuthorize DeliverySchedule Receiving

Approve & Purchase

Benefits– Better pricing– Better sourcing– Cash Commitments analysis– Better Control – Validate the Delivery– Validate the Invoicing Process

The Data Base

FOB CodesChargesUnit / NatureTermsVendor Item MasterPersonal Account

FOB Codes

FOB Codes

IFM Data

Terms

Terms are active in IFM and Purchasing

PO Header

FreightSpecial ChargeTaxesApproverPayment Terms

Vendor Details

PO Header

PO Item

Key Data

Receive

ValidateAuthorizeIdentify

Receiving Screens

Key Receiving Data

PO NumberItemQuantity / Unit if Measure ReleaseGoods Receipt Note (GRN)GRN Invoice ‘Y/N’

Receiving

Benefits– Confirm order is Delivered– Quality– Vendor Performance– Authorize Payment

Invoice Process

ValidateRecordAuthorize

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

Invoicing

Invoicing Match

Generate from Goods Received

Key Data

Invoice NumberGRN NumberItems AmountsFOB

Purchase to Voucher

•Inventory •Receipts Not Invoiced •Invoice Clearing

•Accounts Payable • Price Var.

•RP 100 •RP 100•AP 125

•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

Return to Sender

Purchasing Debit MemoTo

IFM A/P Debit

Return to Vendor

Return to Vendor

RP Purchase ReceiptPQ Purchase Quality ReceiptRQ Reject & Return For QualityVR Vendor Return

Return to Vendor

Return to Vendor

VR – Vender return– PO– Location – Quantity– Resupply (Y/N)

Return to Vendor

Return to Vendor

Return to Vendor

Return to Vendor

Return to Vendor

Benefits– Pay Only for Good Parts– Better Communication – Transparency – Vendor Performance Reporting

Overall Benefits

Plan and ExecuteAuthorizeControl EfficiencyAttainTransparency Within the Enterprise

Procurement to Invoice

Thank You for Attending!