Agenda

P2P Process benefits to Business functions

Ariba P2P Components

Requisition Process

Requisition approvals

Receiving Process

Invoice process

Prospective Procure to Pay Flow

P2P Process Benefits to Business Functions

-Procurement Organization Challenges

-Stake Holder Challenges

-Ariba Solutions

-Ariba Procure to Pay

Procurement Organization Challenges

Procurement compliance?

• (Pricing, suppliers, contracts)

Purchase controls

• (Approvals, budget-checking)

Order Management

• (Order confirmations, changes, ship notices)

AP efficiency

• (Paper, exception, matching, approvals)

Management and Control

• (Visibility, Analysis, Transparency)

FIND

ORDER

ORDER

PAY

MIX

Stakeholder Challenges

User

I need to find things quickly, get

approval, order fast and track

status

End-

User

What are my real savings?

How is purchasing impacting

the bottom-line?

CPO / CFO

How do I enforce purchasing

policy compliance across my

distributed organization

Purchasing

Manager

I spend too much time on

routine PO/Invoice

processing

Buyer /

AP Executive

Stakeholder

Challenges

Ariba Solutions

Ariba

Procure-to-Pay

User

I need to find things

quickly, get approval,

order fast and track status

I spend too much time on

routine PO/Invoice

processing

How do I enforce purchasing

policy compliance across my

distributed organization

What are my real savings?

How is purchasing impacting

the bottom-line?

End-User

CPO / CFO

Purchasing

Manager

Buyer /

AP Executive

Automated approvals Electronic POs and Invoices Supplier Connectivity

Desktop requisitioning Electronic catalogs Fast approvals

Manage Supplier Process Alerts & Notifications Exception Mgmt

Measurable savings Enforce best practices Total Cost of Ownership

Ariba Procure to Pay

Enforce Compliance & Order -Requisition Creation

-Requisition Workflow

-Order to Network or ERP

-Optional Receipt

Receive & Reconcile-Receive Goods & Services

-Asset Tracking & ERP Export

Invoice & Pay-Invoice Reconciliation

-Configurable Invoice Workflow

-Invoice Against Contract

-Optional Working

Capital Management Solutions

Supplier Collaboration

Select Goods & Services-Catalog-based requisitioning

-Goods & Complex Service

-Contract Compliance

Ariba P2P Components-Ariba Requisition to Pay Process

-Buying tool

-Receiving Engine

-Invoicing Engine

-Catalog/Content Engine

-Ariba Network

-Contract Compliance

Requisition to Pay Process

AribaP2P

Shipment

Supplier

AccountsPayable

Arib

a N

etw

ork

Central Receiving

PurchaseOrder

2

Requester

Requisition

3

Receipt

4

Requisition

1

Payment Push

7

Payment

8

6Reconciliation

Invoice

Requesters Can ReceiveDirectly for

certain commodities too

ElectronicInvoice

5

The Buying Tool

Purchase Requisition

Cost Assignment

Contract Compliance

Approval Workflow

Buyer’s tools

Purchase Order Management

Shipment Notice Visibility

Goods/Service Reception

Receiving Process

Desktop Receiving

Central Receiving

Auto Receipt

Partial Receiving

Asset Tracking

Controlled Tolerance

Invoicing Process

Using ARIBA

Find PO in the same system

Automatic rules for receiving

Automatic rules for non PO

invoices

Integrated contract compliance

Integrated reporting across all

systems and tools

Supplier Network

Accounts Payable

Invoice Mgmt Tool

Requesters

Procurement Tool

Catalog/Content Engine

Cat

alo

gs

Internal (private) Catalogs

External Catalogs

Catalog Reporting

Catalog Validation

Content Validation

Catalogs Through Ariba Network

Ariba Network

SUPPLIER.ARIBA.COM

1. Suppliers upload catalogs

Buyer subscribes to catalogsfrom Supplier 2

Supplier 1

Item AItem BItem CItem D...

Supplier 1 uploads

catalog

Procure-to-Pay

3. Scheduled task imports catalogs

Office Supplies

Electric Supplies

Computer Supplies

Paper

Writing

Filing

Cable

Batteries

Hardware

Software

Catalog

Supplier 2Item FItem GItem HItem J...

Supplier 2 uploads

catalog

Supplier 1

Item AItem BItem CItem D...

Supplier 2Item FItem GItem HItem J...

BUYER.ARIBA.COM

The Ariba Network

Ele

ctro

nic

Co

nn

ect

ivit

y Purchase Orders

Change Orders

Cancellation Orders

Advanced Shipment Notices

Invoices

Invoice Status

Remittance Advices

Catalog Management

AribaNetwork

Ariba Network Supplier Activities- Order Confirmations,

Shipment Notices & Invoices

The AN(Ariba Network) Architecture

Customer 1

Customer 2

Customer 3

Ariba Network

Invoice and Pay Status

Invoice Entry

PO Inbox

Collaboration

Payment Services

Transaction Routing

Docs & Training

BUYER.ARIBA.COM

SUPPLIER.ARIBA.COM

Supplier Mgmt

Catalog Content Staging

Supplier

HTML

Supplier

XML

Supplier

Fax

Supplier

EDI

Supplier

Email

Contracts Compliance

•Covers all products or services purchased from the supplierSupplier Level

•Covers all products or services, identified by specific commodity codes, purchased from the supplierCommodity Level

•Covers all items from a specific catalog furnished by the supplierCatalog Level

•Covers specific items purchased from a supplier. Contract items can be made visible for users to add to requisitions or invoices in the same manner as catalog items

Item Level

There are four possible contract types that define the scope of a contract

In order of increasing specificity:

Contracts Creation Options

Release ContractNo-Release

ContractBlanket Purchase

Order

Specify if PO is required

to release funds against

a contract.

Encumbers funds on the

contract. Ariba

automatically adjusts the

available amount and

other accumulators for

the contract based on the

purchase requisition

status.

Blanket Purchase Order

is an attribute of a

contract – i.e., it is set up

by creating a Contract

Request, not a

Requisition

BPO’s can be set up as

Release-Order or No-

Release Order contracts

If you set the “Release

Required” option to “No”

on the contract request,

you create a No-

Release-Order Contract.

You do not create

purchase orders against

a No-Release-Order

contract, but you can

receive against it, and

suppliers can invoice

against the contract.

Requisition Process

-Requisition to PO Process Overview

-Requisition Approval Process

Requisition to PO Process Overview

Requisition Purchase OrderApproved

CatalogsNon-

CatalogContract

CIF CatalogPunchoutCatalog

1. Search and Select Commodities from CIF or Punchout Catalogs

2. And/Or Add commodities as Non Catalog Items and/or Contract documents into a requisition.

And/Or And/Or

3. The Requisition gets approved and converts into a Purchase Order, before it is sent to the Supplier.

Requisition Approval Process Overview

• What is an Approvable Document?

An document that must be approved by a designated approver before it

can be acted upon.

Requester Approver Action

Requisition Purchase OrderApproved

CatalogsNon-

CatalogContract

CIF Catalog

PunchoutCatalog

And/Or And/Or

Supervisor

Purchase Order

Requester

Purchasing Agent

Category Expert

Contract Approver

Receiving Process

Receiving- Recap

On Receiving the Purchase Order, the supplier fulfills the order.

Goods are shipped to the customer.

Depending on the kind of commodity, receiving methods could be of two types-

Desktop Receiving

Requesters receive shipments at their desks.

Only the requester can perform the receiving transaction.

Central Receiving

Goods are received at a central location, and more than one user can receive shipments.

Users who are members of a certain group receive goods that have a specific commodity code.

Invoicing Process

-Invoicing Overview

-Manual Invoicing

-e-Invoicing

Invoicing Process Overview

Invoice Reconciliation (IR) OK2Pay Reconcilled

Supplier sends invoice using

the Ariba Network

Invoice Entry users from AP

staff create invoices.

Or

1. After shipping the goods ordered by the customer, the supplier can create an invoice against the PO on the Ariba Network, or

2. After shipping the goods ordered by the customer, the supplier sends the hard copy of the invoice, which could be manually entered by members of the Accounts Payable department.

3. Once the Invoice is received, and the resultant IR reconciled, the OK2Pay file is generated and sent to the Payment System for payments processing.

Manual Invoicing

Ariba P2PAriba

NetworkSupplier

1. Received PO through

Ariba Network or a

Manual Copy.

Customer

3. Received Goods and

Paper Invoice from

Supplier

PO1 PO1

4. AP executive creates

Invoice manually on

Ariba P2P based on the

paper invoice and

reconcile the resulting

invoice reconciliation

document.

INV12. Sent Goods and Paper

Invoice to Customer

INV1

e-Invoicing

Ariba P2PAriba

NetworkSupplier

1. Received PO through

Ariba. Network

Customer

3. Received Goods from

Supplier

PO1 PO1

5. AP executive receives

the e-Invoice and

reconciles it. Once

reconciled, the invoice

is pushed for payment.

INV1 INV1 2. Sent Goods to Customer

4. Post sending goods

supplier creates an

Invoice on the Ariba

Network against the PO.

Prospective Procure to Pay Flow

Procure to Pay Flow

JDE

S

U

P

P

L

I

E

R

APPROVAL

FLOWS

PO

export

Receipt

export

REMADV REMADV REMITTANCE

INTERNAL

INV

ARIBA

NETWORK

S

U

P

P

L

I

E

R

B

U

Y

E

R

PO PO

OK 2 Pay

export

P2P

(User Interface)

INV

PO

FLIP

INV

INV STATUSINV STATUS

EDI INV

EDI

Supplier

cXML

Supplier

cXML

INV

Invoice

Reconciliation

Approval Flows

Receiving

Requisition

Process

Contract

Compliance

Ariba P2P

ITK

DTT

Firewall