Spending Request Example V4
-
Upload
mark-s-mahre -
Category
Documents
-
view
5 -
download
1
Transcript of Spending Request Example V4
Enterprise Technology Finance
CapEx & OpEx Spending Requests
Version 4.0ClearCost Consulting US
When is a Spending Request Required?
Any CapEx or OpEx Spending for:
Any Purchases over $10,000 (or for all Laptops or PC’s even if under $10,000)
Maintenance Renewals
Consulting / Statement of Work
Human Resources (i.e. FTE, Staff Aug, Contractor)
2
Scope of Project Changes
Requested Amount of Original Project Increases by more than 15%
Keep Good Records – Justification will be Required as to Why the Change
When is an Addendum Required?
ClearCost Consulting US
What are the Approval Limits
3
Requests Under $100,000 – Approved by SLT
Requests $100,000 to $500,000 – Approved by SLT and CIO
Requests Above $500,000 – Approved by SLT, CIO, and Corporate
Requests for Human Resource Requests for All Amounts - Approved by SLT and CIO
ClearCost Consulting US
How to Submit a Request to ET Finance
4
*ET_Finance_Request
ClearCost Consulting US
PO IssuedCreate Input Corporate Entities Review Consolidate
Terminology
New Process Path for ET Finance Requests - Start to Finish
5C
orp
ora
te A
pp
rova
l
SLT
/ C
IO A
pp
rova
l
Form
ClearCost Consulting US
Framework – Color Scheme
SLT / CIOApproval
CorporateApproval
Create InputCorporate
EntitiesReview Consolidate PO Issued
6
Gold indicates the task responsibility belongs to Requestor
Blue indicates the task responsibility belongs to ET Finance
Red indicates the task responsibility belongs to the Senior Leadership Team and CIO
Green indicates the task responsibility belongs to Corporate Finance
ClearCost Consulting US
Requests Below $100,000
Request Approval Process – Four Types
ClearCost Consulting US 7
Requests $100,000 to $500,000
Create ReviewSLT / CIOApproval
InputCorporate
EntitiesConsolidate PO Issued
Requests Over $500,000
Create ReviewSLT / CIOApproval
Corporate Approval
InputCorporate
EntitiesConsolidate PO Issued
Create ReviewInput PO IssuedSLT
ApprovalCorporate
Entities
New Human Resources – All $ Amounts
Create ReviewSLT / CIOApproval
Input Consolidate
Create
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
The Request Owner will need to:
Learn and understand all elements of Request process
Review and chart proper path of Request
Contact their respective ET Finance Lead
To place the Request request on tracking file and scorecard
Start to CREATE the Request form and supporting documentation
ClearCost Consulting US 8
The Request Owner will need to:
Work with various individuals or groups with direct inter-dependencies relating to the Request components to gather, record, calculate, validate INPUT data for the Request such as:
Partners
Finance
Vendors
Business Units, when applicable
Strategic Sourcing
Collaboration efforts are VERY CRITICAL while completing the Request
The more up front effort made to complete the details or dependencies, the greater chance for timely approval – avoiding no reworks
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
Input
9ClearCost Consulting US
The Request Owner will need to:
Engage CORPORATE ENTITIES such as:
Legal Group – Contract Validation; any issues relating to legality
Strategic Sourcing / Procurement Group – Price validation & Supplier Selection
Category Sourcing Councils
Corporate Treasury
Facilities – Space requirements for purchases
Enterprise Risk & Resilience – Security / Risk Concerns
Enterprise Architecture Governance Council – Required for a capital investment in IT infrastructure in new technology not currently listed as an approved standard
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
Corporate Entities
10ClearCost Consulting US
ET Finance will need to:
Receive the Request from the Request Owner. Finance will REVIEW the Request and dive deep into the financial components of the Request to ensure consistency and accuracy of corporate financial governance
Ensure Strategic Sourcing is engaged when applicable
Request Owner and ET Finance will perform a final review of the details of the Request
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
Review
11
Next Steps for ET Finance is:
Requests below $100K will need proper approval from the SLT member during this step in the process. Any required IO numbers will only be issues after the SLT approval is complete
Requests over $100K will continue on to the consolidate step
ClearCost Consulting US
ET Finance will:
Finalize the financial review of the Request
Take all the documents and information up to this point and CONSOLIDATE into one Request document adding to the weekly package for SLT & CIO to review
Make appropriate updates tracking file and scorecard
Complete Weekly on Friday Request package forwards to SLT and CIO for approval the following Friday
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate IO Issued
Consolidate
12ClearCost Consulting US
The SLT will do the following:
For any Requests below $100K, ET Finance will work with the SLT to review and evaluate the Request and obtain SLT APPROVAL
Once Request is approved by leadership team the ET Finance can issue PO to start the project
Create ReviewSLT
ApprovalCorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
SLT Approval
13ClearCost Consulting US
The SLT and CIO will perform the following:
All Request Package for Requests Above $100K are sent on Friday to STL and CIO
It’s important to ensure that the Request has ALL required approvals from ET, BU requestors, SLT, and Corporate Functions prior to submission to SLT/CIO
SLT and CIO will have the weekend and following business week to review, question, and evaluate the Request and supporting addendums
During the Weekly Friday SLT Meeting, the SLT and CIO will discuss the submitted Requests. During this time formal SLT/CIO Approval is obtained from CIO and leadership team
If the request is for New Head Count, then ET Finance would issue an PO Number and distribute to the Request Owner
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
SLT /CIO Approval
14ClearCost Consulting US
Corporate steps are as follows:
All Requests over $500K are sent for CORPORATE APPROVAL
The Corporate step requires three weeks or 15 business days for proper approvals per CCC company policy
It’s important to ensure that the Request has ALL required approvals from ET Finance, BU, SLT, and CIO prior to being submitted to Corporate
Corporate may choose to not honor the 15 day SLA if the Request is incomplete or inaccurate
When the Corporate Management Team has approved the Request, notification will be sent to the ET Finance
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
15
Corporate
ClearCost Consulting US
PO (Purchase Order) ISSUED steps are as follows:
ET Finance will issue the PO once the Request has been fully approved
ET Finance completes all the approval paperwork and provides the “Go Ahead” by issuing an PO Number
ET Finance then sends the PO number to the Request Owner
PO number is sent to corporate for Entry into the SAP Order to Cash system
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
16
PO Issued
ClearCost Consulting US
Strategic Sourcing• Strategic Sourcing is an organized and collaborative approach to leveraging targeted spend
across the enterprise with select suppliers that are best suited to create knowledge and value in the customer-supplier interface.
CCC’s 6 Step Strategic
Sourcing Process
Strategic Sourcing Process
Conduct RFP
Develop Sourcing Strategy
Analyze Responses
/Select Sources
Opportunity Assessment
Approve Selected Sources
Award & Implementation
17ClearCost Consulting US
Time is determined by Requestor
Create, Input, Other Corporate Entities Timeline:
The amount of time taken in this phase is determined solely by the Requestor. The Service Level Agreement clock (or Approval Time Estimates) starts after completion of these steps.
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
Timeline
18ClearCost Consulting US
Time Expectations or SLA’s
These SLA’s are considered as maximum time estimates for tracking and should not be considered as contractual deadline dates.
Because of the many variables causing scheduling challenges outside the control of ET Finance (i.e. holidays, year-end budget deadlines, errors, omissions or changes to Request’s, and changes within our IT environment), it may be difficult to adhere to any type of strict timing regulations.
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
Timeline
19ClearCost Consulting US
5 Days
Review Timeline: When the ET Finance receives the PROPERLY completed Form on or before MONDAY, ET Finance has FIVE business days to complete the review process
Consolidate Timeline: The ET Finance has FIVE business days to correlate, organize and combine all Request information into one master document before being sent for formal SLT reviews and approvals
SLT / CIO Approval Timeline: The SLT/CIO receives the Request on a Friday afternoon and will use the weekend and entire next week for review, Q&A and analysis. This step will take FIVE business days before final decisions will be made during the Friday Approval Meeting.
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
5 Days5 Days
Timeline
20ClearCost Consulting US
Corporate Approval Timeline: (Only for Request Over $500K ) If approved, corporate will receive the Request on the following Monday then take up to FIFTEEN business days for Corporate internal procedures.
Corporate may not honor the 15 day SLA if the Request is incomplete or inaccurate. Please contact Corporate early on in the process to ensure the financial information is correct before being presented for approvals.
I/O Issued Timeline: Once ET Finance has been notified of Request Approval by Corporate, ET Finance will issue the Purchase Order (PO) number. This final step will take up to FIVE business days.
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
15 Days
5 Days
Timeline
21ClearCost Consulting US
Determined by the Request Owner
Determined bythe Request Owner
Determined bythe Request Owner
Determined bythe Request
Owner
SLA Timeline is 15 Business Days
Total Timeline: Is considered an Estimate based on BAU activities without any holiday interference during the SLA term. SLA’s are subject to change for $5M or more enterprise-wide and complex requests.
SLA Timeline is 20 Business Days
SLA Timeline is 35 Business Days
Timeline – Total (By Type)
SLA Timeline is 15 Business Days
Create ReviewSLT / CIOApproval
Input Consolidate
Create ReviewSLT / CIOApproval
CorporateApproval
InputCorporate
EntitiesConsolidate PO Issued
ReviewSLT / CIOApproval
Create InputCorporate
EntitiesConsolidate PO Issued
ReviewSLT
ApprovalCreate Input
CorporateEntities
PO Issued
22ClearCost Consulting US
23
SharePoint Accesshttps://portal.CCC.net/ETFinance/Requestapprovalprocess/Wiki/Home.aspx
ClearCost Consulting US
24
General Information: ET Finance Info: Business Unit Info: Charge Back Info:
Request Number In Budget (Y/N); Amount Impact Monthly CB to BU 2011
I/O Number Forecast (Y/N); Amount Capital Cost Monthly CB to BU 2012
BU Making Request Year 1, 2, 3, 4, & 5 Impact Incremental Cost Monthly CB to BU 2013
Name of Commitment Total Impact Labor Hours
Description of Commitment Capital Cost Labor Cost
Date Approved Incremental Cost Opp Cost, other than labor
Labor Hours
Labor Cost
Opp Cost, other than labor
Request Form Review
Overall information included with fully completed Request
Items in Red will be included by ET Finance prior to/after approvals
ClearCost Consulting US
Details on all topics in this presentation can be found in the Request Approval Process User Manual located on the SharePoint site.
Thank you for your time.
Create Input Corporate Entities Review Consolidate PO Issued
Co
rpo
rate
Ap
pro
val
SLT/
CIO
Ap
pro
val
Final SlideClearCost Consulting US