It’s Quick & Easy Plus  Money in the Bank for Vendors! NASC March 21, 2007 MISSISSIPPI  E-INVOICING
<ul><li>HOW WE GOT HERE </li></ul><ul><li>E–INVOICING PROJECT </li></ul><ul><li>BENEFITS </li></ul><ul><li>STATUS </li></u...
<ul><li>HOW WE GOT HERE </li></ul><ul><li>Discovery of PayMode® </li></ul><ul><li>What is PayMode®? </li></ul><ul><li>Vend...
<ul><li>DISCOVERY OF PAYMODE® </li></ul><ul><li>Gartner research referenced PayMode® </li></ul><ul><li>Checked out the Web...
<ul><li>WHAT IS PAYMODE®? </li></ul><ul><li>Electronic Payment and Remittance Processing </li></ul><ul><li>Links detailed,...
<ul><li>VENDOR E–PAY TIMELINE </li></ul><ul><li>9/1/2002 Project Start for PayMode® Payer Invoice Management Service   </l...
<ul><li>STATISTICS FOR VENDOR E-PAYMENTS   </li></ul><ul><li>February 2007 Vendor E-Payments were over 50% in both payment...
<ul><li>E–INVOICING PROJECT </li></ul><ul><li>Engagement Background </li></ul><ul><li>Objectives </li></ul><ul><li>Summary...
<ul><li>ENGAGEMENT BACKGROUND </li></ul><ul><li>In February 2004, the Mississippi Department of Finance and  </li></ul><ul...
<ul><li>OBJECTIVES </li></ul><ul><li>Eliminate labor intensive paper invoice handling  </li></ul><ul><li>Automate the capt...
<ul><li>SUMMARY OF PROPOSED SERVICES </li></ul><ul><li>Solicitation of Mississippi’s PayMode® enrolled vendors to send ele...
<ul><li>SUMMARY OF PROPOSED SERVICES </li></ul><ul><li>(continued) </li></ul><ul><li>Development of invoice business rules...
<ul><li>REQUIREMENTS DEFINITIONS </li></ul><ul><li>Vendors submit electronic invoices to PayMode® </li></ul><ul><li>SAAS s...
<ul><li>REQUIREMENTS DEFINITIONS   (continued)   </li></ul><ul><li>PayMode® sends a file of approved invoices to SAAS  </l...
PROCESS  (Located in Training Document 5701)
<ul><li>PROGRAMMING & TESTING </li></ul><ul><li>4 sessions of prototyping & review </li></ul><ul><li>Usability testing </l...
<ul><li>PILOT AGENCIES/VENDORS   </li></ul><ul><li>Pilot Implementation October 1, 2006 </li></ul><ul><li>4 agencies selec...
<ul><li>STATEWIDE IMPLEMENTATION </li></ul><ul><li>December 1, 2006 </li></ul><ul><li>Controlled vendor enrollment </li></...
<ul><li>TRAINING </li></ul><ul><li>By PayMode®:  </li></ul><ul><ul><li>Pilot agencies </li></ul></ul><ul><ul><li>DFA-OFM (...
<ul><li>TRAINING DOCUMENTATION </li></ul><ul><li>5000 SAAS  </li></ul><ul><ul><li>5100 User Workbooks  </li></ul></ul><ul>...
<ul><li>TRAINING DOCUMENTATION PATH </li></ul><ul><li>http://www.dfa.state.ms.us </li></ul><ul><li>DFA Offices </li></ul><...
<ul><li>BENEFITS </li></ul><ul><li>Vendors </li></ul><ul><li>Agencies </li></ul><ul><li>DFA – Fiscal Management </li></ul>
<ul><li>BENEFITS TO VENDORS </li></ul><ul><li>Saves time and money </li></ul><ul><li>Fits with existing systems </li></ul>...
<ul><li>BENEFITS TO AGENCIES </li></ul><ul><li>Leverages the current PayMode® vendor electronic payment solution </li></ul...
<ul><li>BENEFITS TO AGENCIES   (continued) </li></ul><ul><li>Reduction in time spent responding to vendors’ payment inquir...
<ul><li>BENEFITS TO DFA </li></ul><ul><li>NO paper </li></ul><ul><li>Only 1 report to review each day </li></ul><ul><li>Ab...
<ul><li>PRE - AUDIT SELECTION MATRIX </li></ul>
<ul><li>STATUS </li></ul><ul><li>Invoices received in PayMode® = 96 </li></ul><ul><li>Invoices paid in PayMode® = 61 </li>...
<ul><li>AVERAGE PROCESSING TIMES TO DATE </li></ul><ul><li>October 1 – November 31 </li></ul><ul><ul><li>Pilot period </li...
<ul><li>LESSONS LEARNED </li></ul><ul><li>Smaller training classes </li></ul><ul><li>Expand pilot processing time before g...
[email_address] P. O. Box 1060 Jackson, MS 39215 601-359-3405 Leila Malatesta, Director Office of Fiscal Management
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  1. 1. It’s Quick & Easy Plus Money in the Bank for Vendors! NASC March 21, 2007 MISSISSIPPI E-INVOICING
  2. 2. <ul><li>HOW WE GOT HERE </li></ul><ul><li>E–INVOICING PROJECT </li></ul><ul><li>BENEFITS </li></ul><ul><li>STATUS </li></ul><ul><li>LESSONS LEARNED </li></ul>
  3. 3. <ul><li>HOW WE GOT HERE </li></ul><ul><li>Discovery of PayMode® </li></ul><ul><li>What is PayMode®? </li></ul><ul><li>Vendor E–Pay Timeline </li></ul><ul><li>Current Statistics </li></ul>
  4. 4. <ul><li>DISCOVERY OF PAYMODE® </li></ul><ul><li>Gartner research referenced PayMode® </li></ul><ul><li>Checked out the Web demo </li></ul><ul><li>Answered the phone on vendor follow-up call </li></ul><ul><li>PayMode® is now a Bank of America Global Treasury Services product </li></ul>
  5. 5. <ul><li>WHAT IS PAYMODE®? </li></ul><ul><li>Electronic Payment and Remittance Processing </li></ul><ul><li>Links detailed, digital remittance information to payments </li></ul><ul><li>Is broadly accepted by vendors, suppliers, other payees </li></ul><ul><li>Works within any system’s environment and business rules </li></ul><ul><li>Works with any bank </li></ul><ul><li>Enables real-time reporting </li></ul><ul><li>State-of-the-art security against fraud, theft and misuse </li></ul>
  6. 6. <ul><li>VENDOR E–PAY TIMELINE </li></ul><ul><li>9/1/2002 Project Start for PayMode® Payer Invoice Management Service </li></ul><ul><li>10/1/2002 Initial Vendor Implementation Was Conversion of Existing EFT Vendors </li></ul><ul><li>9/22/2003 Expanded Remittance Data Provided Online to Vendors </li></ul><ul><li>10/16/2003 Implemented and Required for Medical/HIPAA Payments </li></ul><ul><li>1/1/2006 Administrative Rule Effective for Mandatory Electronic Payment Of Vendors </li></ul><ul><ul><li>New Vendors Given 60 Day Window to Enroll or Obtain Exemption </li></ul></ul><ul><ul><li>Phased in Implementation of Existing Vendors </li></ul></ul>
  7. 7. <ul><li>STATISTICS FOR VENDOR E-PAYMENTS </li></ul><ul><li>February 2007 Vendor E-Payments were over 50% in both payment count and dollars. </li></ul>** YTD
  8. 8. <ul><li>E–INVOICING PROJECT </li></ul><ul><li>Engagement Background </li></ul><ul><li>Objectives </li></ul><ul><li>Summary of Proposed Services </li></ul><ul><li>Requirements Definition </li></ul><ul><li>Programming & Testing </li></ul><ul><li>Pilot Agencies/Vendors </li></ul><ul><li>Statewide Implementation </li></ul><ul><li>Training </li></ul>
  9. 9. <ul><li>ENGAGEMENT BACKGROUND </li></ul><ul><li>In February 2004, the Mississippi Department of Finance and </li></ul><ul><li>Administration engaged Bank of America’s PayMode® team to </li></ul><ul><li>provide professional services for the analysis and documentation </li></ul><ul><li>of the State of Mississippi’s requirements for electronic invoice </li></ul><ul><li>processing. This engagement had several goals: </li></ul><ul><ul><li>Determining Mississippi’s needs with respect to electronic invoice processing </li></ul></ul><ul><ul><li>Identification of potential benefits that could be achieved through PayMode electronic invoice processing </li></ul></ul><ul><ul><li>Documentation of Mississippi’s high level business requirements for PayMode invoice processing </li></ul></ul>
  10. 10. <ul><li>OBJECTIVES </li></ul><ul><li>Eliminate labor intensive paper invoice handling </li></ul><ul><li>Automate the capture of remittance data from the invoice </li></ul><ul><li>Automate the invoice to PO matching process </li></ul><ul><li>Route invoices to the appropriate users for approval </li></ul><ul><li>Support vendors’ detailed remittance data needs without requiring all the detail to be fed to Statewide Automated Accounting System (SAAS) </li></ul><ul><li>Reduce time spent responding to vendors’ payment inquiries </li></ul><ul><li>Capture and retain appropriate levels of invoice and payment data to meet ongoing research and audit requirements </li></ul>
  11. 11. <ul><li>SUMMARY OF PROPOSED SERVICES </li></ul><ul><li>Solicitation of Mississippi’s PayMode® enrolled vendors to send electronic invoices through PayMode® for transmission to SAAS </li></ul><ul><li>A web-based user interface to view electronic invoices sent by vendors enrolled for the invoicing service </li></ul><ul><li>A web-based “manual” invoice template for vendors who may not be “electronically” enabled </li></ul><ul><li>Daily file transmissions to SAAS of all approved electronic invoices </li></ul>
  12. 12. <ul><li>SUMMARY OF PROPOSED SERVICES </li></ul><ul><li>(continued) </li></ul><ul><li>Development of invoice business rules to support Mississippi’s approval and routing process </li></ul><ul><li>Ability to route invoices and restrict user access by agency </li></ul><ul><li>Email notification to designated users of pending invoice approvals and invoices exceeding the state’s aging requirements </li></ul><ul><li>Daily transmission of PO file from SAAS to PayMode® for matching </li></ul><ul><li>Email notification to vendors of rejected/disputed invoices </li></ul>
  13. 13. <ul><li>REQUIREMENTS DEFINITIONS </li></ul><ul><li>Vendors submit electronic invoices to PayMode® </li></ul><ul><li>SAAS supplies PayMode® with open PO data </li></ul><ul><li>PayMode® processes electronic invoices </li></ul><ul><ul><li>Invoices are edited using established business rules, including matching them to PO data </li></ul></ul><ul><ul><li>Invalid invoices are routed to the vendor’s users for correction and resubmission or retraction </li></ul></ul><ul><ul><li>Valid invoices are routed to the appropriate agency users for approval or other disposition </li></ul></ul><ul><li>Agency users review and approve invoices </li></ul>
  14. 14. <ul><li>REQUIREMENTS DEFINITIONS (continued) </li></ul><ul><li>PayMode® sends a file of approved invoices to SAAS </li></ul><ul><li>An electronic voucher (EV) is created for the agency </li></ul><ul><li>The agency enters/changes and approves EVs </li></ul><ul><li>DFA reviews and applies final approvals </li></ul><ul><li>DFA submits payments to PayMode® for approved EV’s </li></ul><ul><li>PayMode® processes payments electronically, flags invoices as paid, and provides vendors with A/R information </li></ul>
  15. 15. PROCESS (Located in Training Document 5701)
  16. 16. <ul><li>PROGRAMMING & TESTING </li></ul><ul><li>4 sessions of prototyping & review </li></ul><ul><li>Usability testing </li></ul><ul><li>Development </li></ul><ul><ul><li>By PayMode® of online eInvoice system </li></ul></ul><ul><ul><li>By MS for interface from eInvoice system to SAAS of new document type (EV) and invoice tables </li></ul></ul><ul><li>Quality assurance testing by PayMode® and by MS </li></ul><ul><li>User acceptance testing </li></ul><ul><li>End to end testing </li></ul>
  17. 17. <ul><li>PILOT AGENCIES/VENDORS </li></ul><ul><li>Pilot Implementation October 1, 2006 </li></ul><ul><li>4 agencies selected as pilots </li></ul><ul><ul><li>DFA, SPB, ITS, SDE </li></ul></ul><ul><li>Vendors common to pilot agencies selected as pilot vendors </li></ul>
  18. 18. <ul><li>STATEWIDE IMPLEMENTATION </li></ul><ul><li>December 1, 2006 </li></ul><ul><li>Controlled vendor enrollment </li></ul><ul><li>Training for agency staff </li></ul>
  19. 19. <ul><li>TRAINING </li></ul><ul><li>By PayMode®: </li></ul><ul><ul><li>Pilot agencies </li></ul></ul><ul><ul><li>DFA-OFM (pre-audit control staff) </li></ul></ul><ul><ul><li>DFA trainers (Train the Trainer) </li></ul></ul><ul><ul><li>DFA administrators (security set up) </li></ul></ul><ul><ul><li>Billers </li></ul></ul><ul><ul><ul><li>Direct Marketing contacted by mail </li></ul></ul></ul><ul><ul><ul><li>follow-up training document </li></ul></ul></ul><ul><ul><ul><li>WebCast </li></ul></ul></ul><ul><li>By DFA: Other agencies (still in process) </li></ul>
  20. 20. <ul><li>TRAINING DOCUMENTATION </li></ul><ul><li>5000 SAAS </li></ul><ul><ul><li>5100 User Workbooks </li></ul></ul><ul><ul><ul><li>5113 –Accounts Payable Electronic Invoice (EV) </li></ul></ul></ul><ul><ul><li>5700 PayMode® </li></ul></ul><ul><ul><ul><li>5701 – PayMode® Payer Invoice Management </li></ul></ul></ul>
  21. 21. <ul><li>TRAINING DOCUMENTATION PATH </li></ul><ul><li>http://www.dfa.state.ms.us </li></ul><ul><li>DFA Offices </li></ul><ul><li>MMRS </li></ul><ul><li>MASH – Customer Support </li></ul><ul><li>MMRS Training Documentation </li></ul><ul><li>(https://www.mmrs.state.ms.us/MMRS/Training_Documentation.nsf/Main?OpenFrameset) </li></ul>
  22. 22. <ul><li>BENEFITS </li></ul><ul><li>Vendors </li></ul><ul><li>Agencies </li></ul><ul><li>DFA – Fiscal Management </li></ul>
  23. 23. <ul><li>BENEFITS TO VENDORS </li></ul><ul><li>Saves time and money </li></ul><ul><li>Fits with existing systems </li></ul><ul><li>Payment includes all of the detailed information from an invoice </li></ul><ul><li>Real-time access to invoice processing status </li></ul><ul><li>It is easy to sign up and get started </li></ul>
  24. 24. <ul><li>BENEFITS TO AGENCIES </li></ul><ul><li>Leverages the current PayMode® vendor electronic payment solution </li></ul><ul><li>Eliminates labor intensive paper invoice handling </li></ul><ul><li>Captures electronic remittance detail from the invoice </li></ul><ul><li>Automates the invoice to purchase order matching process </li></ul><ul><li>Automatically routes invoices to the appropriate users </li></ul><ul><li>Support of vendors’ detailed remittance data needs without requiring all the detail to be fed to SAAS </li></ul>
  25. 25. <ul><li>BENEFITS TO AGENCIES (continued) </li></ul><ul><li>Reduction in time spent responding to vendors’ payment inquiries by increasing the number of payments correctly applied to accounts receivable </li></ul><ul><li>Capture and retention of appropriate levels of invoice and payment data to meet ongoing research and audit requirements </li></ul><ul><li>Maximization of vendor acceptance through the use of PayMode® proven, highly successful vendor adoption program </li></ul>
  26. 26. <ul><li>BENEFITS TO DFA </li></ul><ul><li>NO paper </li></ul><ul><li>Only 1 report to review each day </li></ul><ul><li>Ability to view both Invoice (PayMode®) and EV (SAAS) simultaneously </li></ul><ul><li>No warrants to distribute or reissue if lost </li></ul><ul><li>Ability to track discounts taken or missed </li></ul><ul><li>Will allow DFA to audit transactions both randomly and based on pre-determined matrix </li></ul>
  27. 27. <ul><li>PRE - AUDIT SELECTION MATRIX </li></ul>
  28. 28. <ul><li>STATUS </li></ul><ul><li>Invoices received in PayMode® = 96 </li></ul><ul><li>Invoices paid in PayMode® = 61 </li></ul><ul><li>Agencies enrolled in PayMode® = 29 </li></ul><ul><li>Agencies trained = 62 </li></ul><ul><li>Vendors enrolled in PayMode® = 43 </li></ul><ul><li>Vendors in process of enrolling = 10 </li></ul><ul><li>Vendors contacted = 59 </li></ul><ul><li>Vendors declined/did not respond = 6 </li></ul>
  29. 29. <ul><li>AVERAGE PROCESSING TIMES TO DATE </li></ul><ul><li>October 1 – November 31 </li></ul><ul><ul><li>Pilot period </li></ul></ul><ul><ul><li>Receipt to payment ranged from 4 days to 28 days </li></ul></ul><ul><ul><li>Average of 11 days (including the highs and lows) </li></ul></ul><ul><li>December 1 to March 1 </li></ul><ul><ul><li>Statewide implementation </li></ul></ul><ul><ul><li>Receipt to payment ranged from 3 days to 23 days </li></ul></ul><ul><ul><li>Average of 9 days (including highs and lows) </li></ul></ul>
  30. 30. <ul><li>LESSONS LEARNED </li></ul><ul><li>Smaller training classes </li></ul><ul><li>Expand pilot processing time before going statewide </li></ul><ul><li>Perform more extensive testing </li></ul>
  31. 31. [email_address] P. O. Box 1060 Jackson, MS 39215 601-359-3405 Leila Malatesta, Director Office of Fiscal Management
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