Procure to-pay-best-practices

10,631 views

Published on

Procure to Pay

Published in: Software, Business, Technology
0 Comments
7 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
10,631
On SlideShare
0
From Embeds
0
Number of Embeds
63
Actions
Shares
0
Downloads
707
Comments
0
Likes
7
Embeds 0
No embeds

No notes for slide
  • Reduce Spend – Contracts
    Reduce Processing Costs – PCards, ASN/ERS - streamline
    Improved Cash Management – Procurement Cards
    Stronger Internal Controls – Contracts, Matching
    Better Visibility – Contracts, eSettlements life cycle
    Better Communication – eSettlements using dispute settlements
  • Need to get file from bank, they need to be able to support the format.
    PCard information communicated with vendor
    Vendor passes PO information onto card issuing bank
    Bank passes PO information to customer in PCard bank statement
    Statement Load loading process attempts to use PO ID, along with transaction date and dollar amount, to try and match transaction with PO information
    Two notifications: Bank statement workflow and Grace Period Expired Workflow
    Procurement Cards on Requisitions and Purchase Orders
    To reduce the overhead costs associated with processing invoices and payments
    to suppliers companies are increasingly turning to procurement cards as a
    preferred payment method. To assist customers in streamlining their
    procurement and payables business process, Purchasing 8.9 enables users to
    specify Procurement Cards as a payment method on their requisitions and
    purchase orders. The users have an option of using their departmental cards or a
    ghost card on their transactions with various secure options to transmit the card
    numbers to suppliers. With this information available, the system can
    automatically match the incoming bank statements with purchase orders,
    accurately assigning costs to the right accounts. This enables companies to
    reduce their settlement costs with suppliers without sacrificing controls or access
    to spend information.
  • To ease the administrative burden of procurement cards, mass maintenance features have been
    added to this release. Since an organization can have a large number of procurement card users,
    administration of the individual cards can become very time intensive. The Mass Assign Proxy
    enables the management of proxies for multiple cards reducing the amount of time needed to
    administer and manage procurement cards. If, for example, a user that was an administrator for
    multiple cards leaves the company and is replaced by another, the existing set of cards can be
    moved to the new administrator.
    Change, delete, copy & move proxy rights for Cards
  • Transaction details for line
  • Performing key requisition processing tasks from the Manage Requisitions page accelerates and streamlines the requisition process, making users more efficient and effective
    You’ll see enhancements in a bit
    Prior to 8.9, lifecycle on separate page
  • Revisit your approval rules and heirarchy before implementing
  • automation
  • SRM Dashboard
    The SRM Dashboard was introduced in Release 8.9, is a collection of pagelets and metrics presenting aggregated view of source-to-settle business process. It provides the ability to view Purchasing and eProcurement-related information in one centralized location. We have improved business insight in Release 9.0 through the expanded KPI’s, which include the addition of the following metrics:
    For the Buyer Role: Total PO Spend, Percentage Contract Spend, Category Spend, and Supplier Spend
    For the Manager Role: Requisition Approval Notification, Total PO Spend, Category Spend, and Supplier Spend
    Business Unit Level Summaries includes reporting information summarized for a user defined business unit, including the following metrics:
    Requisition Transaction Summary by Month
    Purchase Order Transaction Summary by Month
    Receipt Transactions Summary by Month
    Supplier Performance Analytics allows for the inclusion of a pagelet containing supplier performance information
    Contract Mgmt
    Following up on the initial launch of PeopleSoft Enterprise Supplier Contract Management in release 8.9, release 9.0 contains the following key enhancements:
    Request for Contract – When creating a requisition, the requester can create a supplemental request that captures needed information pertaining to a contract request and any additional information in the supporting document. When you award the requisition to a contract, the contract specialist can reference the original request document and refer to the requesters responses within that request document to help drive the content and enter required data on the actual contract. The benefit of this process is that by the time the contracting specialist gets involved, the requestor has already been prompted for and provided all of the necessary information.
    SLA Compliance –Sometimes contracts contain service level agreements or supplier performance clauses that specify measurable goals or expectations for the supplier. Examples include on-time commitments, shipment accuracy, and shipment quality. Previously, PeopleSoft could only list SLAs. PeopleSoft Enterprise Supplier Contract Management 9 enables you to define these targets as part of the contract agreement and contract deliverable structure and have the application proactively notify you concerning the supplier’s performance. Evaluating the transactional data and then notifying the interested party if the supplier falls out of compliance, makes managing performance on an exception basis easier.
    Services Procurement
    Time reporting -- Customers using PeopleSoft Enterprise Services Procurement 9 to manage resource-based contingent labor can now have Service Providers report time based on shifts, assignments, or both. A shift is essentially a specified period of time that groups of people work such as day shift, swing shift and graveyard shift. Assignments relate to the work being done or conditions of work. For example an assignments can be when a person is on-call and when they are called out. Service providers will be able to report standard time as well as shifts and assignments all in the same user interface.
    Expanded roles - Customers will now be able to define a Service Provider with the additional ability to manage the process as a Service Coordinator. By allowing a service provider to act as a services coordinator, PeopleSoft Enterprise Services Procurement 9 streamlines the management of these service providers and integrates them completely into the PeopleSoft Enterprise Services Procurement application. This provides a lower total cost of ownership, better rate compliance, enhanced performance analysis, and easier replacement of service providers.
    Requisitioning
    Amount-only reqs -- Before PeopleSoft Enterprise Purchasing 9, the requisition was quantity-based. Amount only
    requisitions enable requesters to order goods and services specifying only a dollar amount
    and not quantity. PeopleSoft Enterprise Purchasing 9 extends support for amount only
    requisitions, so requesters now can place an order, receive the order, and pay for an order
    based solely on the amount that is purchased.
    Off-catalog requests – Item catalogs may not contain all items for which a requestor is searching. The Special Request feature enables users to request off-catalog items by providing item information to
    buyers. Typically requesting an item using the Special Request feature is more time consuming than selecting an item from a catalog. If the same item were to be requisitioned repeatedly using the Special Request feature, the requisitioning process would be greatly streamlined for users requesting that common, off-catalog item if it were part of the catalog. Additionally, after the item is added to the catalog, better spend control will occur and the procurement organization may be able to negotiate contracts for this item.
  • According to Hackett Group:
    Simplification of finance process
    Automation of routine or repetitive tasks
    Consolidation of redundant resources
    Standardization of data and processes
    Strategic alignment of finance activities with overall corporate goals
    Shared Services:
    Consolidation of redundant resources
    Standardization of data and processes
    How:
    Centralized ERP Processing
    COA Validation
    Accounting plus inter/intra company
    Allocations
    Statutory Reporting
    Industry Support & Best Practice
    Express Capitalization
    Configurable Matching (up to 4 way)
    Expense Analysis & Control
    Electronic Invoice/Bill Presentment & Payment for Supplier and Customer collaboration
    Centralized Payment platform to improve yield on cash assets & improved working capital
    Contracts
    PCard
    ERS
    Supplier Collaboration
    POAs
    Analytics
    Duplicate Vendor Checking
    Matching (4 way)
    Gain visibility and control over spending – which reduces spend on goods and services
    Focus on Stretegic activities because spending less time on non-value activities – supplier collab
    Other best practices:
    Electronic invoices (XML)
    Supplier self-service
    Online approvals
    Online dispute resolution
    Email notifications
    Matching at header, lines
    Tolerances functionality
    Exceptions workflow
    Virtual approver
    Central payment factory
    Real-time bank connectivity
    Workflow
  • Procure to-pay-best-practices

    1. 1. <Insert Picture Here> Best Practices in PeopleSoft Procurement SRM PUG February 2008 Alexa Dhillon PeopleSoft SRM Product Strategy Manager alexandra.haytcher@oracle.com
    2. 2. The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Safe Harbor Statement
    3. 3. Leveraging Best Practices Across Procurement • Benefits of Integration to Your Organization: • Reduce Spend on Goods and Services • Greatly reduced processing costs • Less Time on Non-Value Add Activities • Stronger internal controls • Better visibility into the entire process • Better communication across parties to optimize decisions and strategies
    4. 4. Procurement Best Practices Getting a Return on Your Investment • Compliance • Enforce Negotiated Terms • Legal and Organizational • Drive Contract Compliance • Streamline Processing • Increase process effectiveness • Extend Procurement Automation to Suppliers • Free Buyers and Payables Clerks to Focus on more Strategic Activities • Greater Business Insight / Analytics • Gain deeper insight into spending • Enhanced, Configurable Reporting to Meet User Needs
    5. 5. Procurement Best Practices Getting a Return on Your Investment • Compliance • Procurement and Supplier Contracts • Streamline Processing • Procurement Cards • eProcurement Approvals • Extend Procurement Automation to Suppliers • eSupplier Connection and Evaluated Receipt Settlement • Greater Business Insight / Analytics • SRM Dashboard
    6. 6. Source Purchase Settle • Supplier Selections • Negotiations and Agreements • Requisitions • Approvals • Purchase Orders • Acknowledgments • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Manage Suppliers & ContractsManage Suppliers & Contracts • Supplier Performance • Expirations & Renewals Procurement Contracts
    7. 7. Supplier Contract Procurement Contracts vs. Supplier Contracts • Procurement Contracts • Part of Core Purchasing • Focuses on execution of contract • Captured key information to support execution • Does not have true legal contract document will all terms and conditions • Available for all releases • Supplier Contracts • Separate Module • Integrates with Core Purchasing • Focuses on Document side of Contract with MS Word Integration • Has structured clause library, rules-based authoring, approval workflow, etc. • SLA and Deliverables Management for contract compliance • Supports powerful contract searching • Starting in Release 8.9
    8. 8. Procurement Contracts Best Practices for Purchasing Contracts • Automate sourcing and releases buyers from routine work • Enforce Contract Usage • Ensure contract pricing and take advantage of volume pricing • Use contract expiration and maximum amount notification • Generate fewer purchase orders • Track contract spend
    9. 9. Procurement Contracts Tips for Getting Started Set Up • Contract Set Controls • User Preferences • Item / Vendor Relationship Contract • Create Contract • Generate Document (Supplier Contracts) • Approve • Generate Releases • Notifications • Review Contract Events, Analytics, SLAs
    10. 10. Purchasing Contracts Recurring Vouchers Both • Purchase Order • Release to Single PO Only • Recurring Voucher • Recurring PO Voucher • General Procurement Contract Process Options: Procurement Contracts Contract Process Options
    11. 11. Procurement Contracts Purchase Order vs. Single PO Contracts • Use Purchase Order Contract when • You want separate purchase orders for each of your contract releases • You want to be able to close your POs once your order is received and paid • Use Single PO Contract when • You or your supplier would like the convenience of tracking, receiving, and vouchering against one PO • You are using PeopleSoft Release 8 SP2 or higher
    12. 12. Procurement Contracts Purchasing Contracts • Master Contract Association – Track and Inquire across multiple contracts • Open Item Reference – Eliminates need to define individual items on a contact • Corporate vs. Non-Corporate Contract – Lower maintenance by sharing contracts across multiple business units • Price Adjustments – Permits volume discounts • Automatic Association of Contract onto PO – Ensure contract compliance • Inquiries and Reports • Dashboards and Analytics – View trends, usage, and opportunities • Milestones, Notifications, Minimum and Maximum Edits …
    13. 13. Procurement Contracts Generating Releases from Contract to Purchase Order Contract Planning (Planned Orders) Releases Contract PO Process PO Calc & PO Create Purchase Orders Requisition Other External Sources
    14. 14. Procurement Contracts Manually Referencing Contract on Requisition Contract Planning (Planned Orders) Requisition Selection PO Calc & PO Create Purchase Orders Requisitions with Contract Other External Sources
    15. 15. Procurement Contracts PO Calc Looks for Available Contract if None Specified Contract Planning (Planned Orders) Requisition Selection PO Calc & PO Create Purchase Orders Req without Contract PO Stage Process Other external Sources
    16. 16. Procurement Contracts Manually Associate Contract on Purchase Order Contract Purchase Order Purchase Order Purchase Order Select Contract on PO Line, or Copy entire Contract into PO
    17. 17. Purchasing Contracts Process Flow Conduct Negotiation Analyze and Award Requisition Contract / Document / SLAs Consolidate Demand Accrue / Relieve Encumbrance Purchase Order Integrated Contracts Enforce Negotiated Terms and Operational Compliance
    18. 18. Procurement Contracts Recurring Voucher Best Practices • Scheduling Vouchers for Repetitive Payments • Automatic Invoice Number Generation • Retention – Ensure project completion before paying full amount • Master Contract Association, Miscellaneous Charges, Milestones … • Tracking and Reporting
    19. 19. Procurement Contracts Recurring Voucher Releases Recurring Voucher Releases Voucher Build VoucherVouchers Create Vouchers on an as-needed basis • Stage all releases up front, create vouchers as needed, or • Stage and create vouchers as needed
    20. 20. Procurement Contracts Recurring PO Voucher Contract $12,000 Purchase Order $12,000 Voucher $4,000 Voucher $4,000 Voucher $4,000 • Encumber funds on Contract prior to Voucher Creation • Applies to Voucher Contracts, and organizations using commitment control
    21. 21. Supplier Contract Management What Is It? Create and Enforce Better Supplier Contracts Contract Document Authoring Content Management Lifecycle Management
    22. 22. Supplier Contracts : Monitoring & SLAs Enforce Contract Compliance Automatic Spend Threshold Notifications Proactive Performance Monitoring Al po icy de via tio ns ar re or ed to ap pr ve s alo ng sid e cla us de via tio ns in Track Spend & Performance:Easily Track SLAs: • % of quality receipts • % Correct Receipt Qty • % On-time deliveries • % Total Ordered versus Received • Define On-Time Metrics • Associate to contract • Update metric based on receipts • View Results In Contracts Monitor • Monitor contracted Service Level Agreements with suppliers and take corrective actions • Understand current spend vs. contract ‘at-a- glance’ and accelerate or reduce spend accordingly Procure-to-Pay for Goods & Services
    23. 23. Supplier Contracts Request Document
    24. 24. Supplier Contracts Contract Request Document
    25. 25. Source Purchase Settle • Supplier Selections • Negotiations and Agreements • Requisitions • Approvals • Purchase Orders • Acknowledgments • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Manage Suppliers & ContractsManage Suppliers & Contracts • Supplier Performance • Expirations & Renewals Procurement Cards
    26. 26. Procurement Cards Best Practices • Reduce the cost associated with vendor set up, processing invoices/payments to vendors • Efficient management of cash flow • Increase Rebate Potential • Improve Controls (Policies and Procedures, Spend monitoring) • Automate Reconciliation • Faster Payment to Vendors • Global Acceptance
    27. 27. Procurement Cards Process Flow USBank & VISA InfoSpan Statement Layout USBank & VISA InfoSpan Statement Layout Misc. Statement Layout Misc. Statement Layout Procurement Card Stage Process Procurement Card Stage Process Inbound File Publish Process Inbound File Publish Process Load Statement ProcessLoad Statement Process Statement Notification ProcessStatement Notification Process Reconcile TransactionsReconcile Transactions Voucher Stage ProcessVoucher Stage Process Voucher Build ProcessVoucher Build Process Budget Check and PostBudget Check and Post Requisition with Procurement Card as Payment Method Requisition with Procurement Card as Payment Method Vendor Ghost CardVendor Ghost Card PO with Procurement Card as Payment Method PO with Procurement Card as Payment Method Dispatch PODispatch PO Streamline Business Process by Automatically Matching Incoming Bank Statement with Purchase Order
    28. 28. Procurement Cards Ghost Card on Vendor • Vendor Ghost Card can automatically be used as a Payment Method on Requisitions and POs
    29. 29. Procurement Cards Reconciling Statement • View Transactions of all Users for which Role has Authority
    30. 30. Source Purchase Settle • Supplier Selections • Negotiations and Agreements • Requisitions • Approvals • Purchase Orders • Acknowledgments • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Procurement Analytic ToolsProcurement Analytic Tools • Supplier Performance • Expirations & Renewals eProcurement Approvals
    31. 31. Simplified Requisition Processing Manage Requisitions – Release 8.9 Visibility into Entire Requisition Lifecycle
    32. 32. Simplified Requisition Processing Approving Requisitions Made Easier – Release 8.9 Mass Approvals Expandable Requisitions
    33. 33. Simplified Requisition Processing Email Approvals – Release 8.9 Approve Without LoggingApprove Without Logging into Applicationinto Application
    34. 34. Source Purchase Settle • Supplier Selections • Negotiations and Agreements • Requisitions • Approvals • Purchase Orders • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Manage Suppliers & ContractsManage Suppliers & Contracts • Supplier Performance • Expirations & Renewals Advanced Shipping Notice / Evaluated Receipt Settlement (Using eSupplier Connection)
    35. 35. Advanced Shipping Notice / Evaluated Receipt Settlement Best Practices • Streamline Receipt Creation Process by having your Vendors Send Advanced Shipping Notices (ASN) • Generate Vouchers without Waiting for Vendor Invoice using Evaluated Receipt Settlement (ERS) • Enables Touchless Receipt and Voucher Creation to reduce data entry time and errors • Useful for vendors with whom you have a trusting relationship
    36. 36. Advanced Shipping Notice / ERS Process Flow PO Entry/ApprovalPO Entry/Approval PO DispatchPO Dispatch Receive by ASNReceive by ASN View PO Information View PO Information Ship & Record ASN with Invoice ID Ship & Record ASN with Invoice ID Buyer Side Supplier Side (eSupplier Connection) Review Shipment History Review Shipment History PO AcknowledgedPO Acknowledged Acknowledge POAcknowledge PO Voucher BuildVoucher Build Voucher / MatchingVoucher / Matching PaymentPayment Review PaymentReview Payment
    37. 37. eSupplier Connection Supplier’s Dashboard Visibility into Transaction History and Supplier’s Performance
    38. 38. eSupplier Connection Advanced Shipping Notices • Supplier Creates ASN On-Line • Alternatively, ASN loaded through EDI
    39. 39. eSupplier Connection Invoice and Payment Details Suppliers View Transaction Details On-Line Frees Buyers to Focus on Strategic Activities
    40. 40. eSupplier Connection Supplier Performance Metrics • On time performance • PO/Receipt Quantity Performance • Quality Performance • Quantity Performance
    41. 41. Source Purchase Settle • Supplier Selections • Negotiations and Agreements • Requisitions • Approvals • Purchase Orders • Acknowledgments • Receipts • Procurement Cards • Vouchers / Invoices • Matching • Payments Procurement Analytic ToolsProcurement Analytic Tools • Supplier Performance • Expirations & Renewals SRM Dashboard
    42. 42. Supplier Relationship Management Insight-Driven Business Processes Business Insight • Expanded KPIs for buyers and managers • Summary metrics at business unit level • Supplier performance analytics pagelet SRM Dashboard Collection of pagelets and metrics presenting aggregated view of source-to-settle business process for Buyers and Managers
    43. 43. SRM Dashboard Pagelets and Metrics in Release 8.9 Activity Monitor Displays Buyer’s Current Task List
    44. 44. SRM Dashboard Pagelets and Metrics in Release 9.0 98% for period 7/06, Total Schedule Lines: 12 Mouse over bar indicates amount and total number of schedules for period
    45. 45. SRM Dashboard Spend by Business Unit Total Spend by BU
    46. 46. SRM Dashboard Spend by Business Unit Filter and View Schedules Drill into PO
    47. 47. Supplier Relationship Management SRM Dashboard – Spend by Category Category Spend Broken Down by Vendor
    48. 48. Procurement Best Practices Getting a Return on Your Investment • Compliance • Procurement and Supplier Contracts • Streamline Processing • Procurement Cards • eProcurement Approvals • Extend Procurement Automation to Suppliers • eSupplier Connection and Evaluated Receipt Settlement • Greater Business Insight / Analytics • SRM Dashboard
    49. 49. Source-to-Pay Best Practices Benefits • Simplification • Eliminate paper • Reduce manual entry and errors • Standardization • Validation of master and transaction data • Automation • Matching, payment and dispute resolution • Manage and control enterprise spend • Consolidation • Shared services • Supplier collaboration • Strategic alignment of finance activities with overall corporate goals • Gain visibility and control over spending • Focus on strategic activities • Improve internal policy compliance • Better visibility into the entire process • Better communication across parties to optimize decisions and strategies • Leverage supplier base

    ×