ReIM Functional Overview

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High level functional overview Oracle Retail Invoice Matching application

ReIM Functional Overview

  1. 1. Functional Overview
  2. 2. • An itemized statement of money owed for goods purchased / shipped / services rendered Invoice
  3. 3. • A receipt is a document stating that the goods that have arrived to the store or warehouse. For the purposes of ReIM, only goods associated with purchase order are considered.
  4. 4. Oracle Retail Invoice Matching (OReIM) is designed tosupport the invoice matching verification with accuracyand efficiency, ensuring that a retailer pays thenegotiated cost for the actual quantities received.OReIM takes Invoices and matches them to POs andReceipts, either manually or through the AUTOMATCHprocess.
  5. 5. Automated PO, Receipt & Invoice MatchingReason Code driven pre-defined actions for resolutionSupports both centralized and decentralized resolutionprocessesAbility to match one to many, one to one or many to one(receipts to invoices)The application of the best payment terms for an invoiceFull integration with the Oracle Retail Applications,therefore, minimizes interface development andmaintenance costs
  6. 6. Key Concepts:Documents
  7. 7. Invoice:Merchandise Invoice:◦ Merchandise Invoice is typically the bill for goods or services received from a supplier, which includes: Merchandise Costs: Costs that are associated with items Costs: on documents Non- Non-merchandise Costs: Costs that are indirectly Costs: associated with invoice items (may not exist in the merchandise invoice)◦ The Sum of the merchandise costs and non-merchandise costs is the total cost for a merchandise invoice.Non-Non-Merchandise Invoice: Invoice:◦ Non-Merchandise invoice is typically the bill for non- merchandise costs only. These invoices cannot contain items.
  8. 8. Notes:Credit Notes:◦ A credit note is a document received from the supplier, often issued in response to a credit note request from the retailer, which results in a reduction of the retailer’s balance owing to the supplier.Debit Memos: Memos:◦ A debit memo is a document created to support a deduction from the invoice being paid. Deductions may result from a price or quantity discrepancy. A Debit Memo also refers supplier billing for rebates, RTVs, and so on. Debit Memos can be created as ‘stand-alone’ (not supported by any OReIM or RMS process).
  9. 9. Credit Note Requests: Requests:◦ A credit note request is a document sent from the retailer to the supplier, requesting a credit note for an over-invoiced amount or in support of various billing activities (e.g. RTVs). If the supplier does not satisfy a Credit Note Request, OReIM provides the ability to convert it into a Debit Memo. Credit Note Request can be created as standalone documents. Memos:Credit Memos:◦ A credit memo is a document created to refund a supplier for an under-invoiced amount. Credit Memos can be created as a dispute on a Debit Memo. Credit Memos may also be created as standalone documents.
  10. 10. Key Concepts:Invoice Matching Process
  11. 11. Matching Resolution FinancialEntry Phase Phase Phase Posting
  12. 12. by:Invoices can be entered/created by:◦ Via EDI◦ Manually Single Entry Group Entry Group of Invoices to a Group of Receipts at a “Summary” level Manual Mass Entry Summary matching occurs in matching process No Details (Line Items) are entered, only totals
  13. 13. match:In OReIM it is possible to match:◦ Merchandise Invoices against PO Receipts from ORMS On-line Matching Automatically◦ Credit Notes against Credit Note Requests On-line Matching
  14. 14. • On-Line Matching provides users with the ability to match merchandise invoices with available (unmatched) receipts.• This provides more flexibility than the initial PO/Location relationship.• On-Line matching either matches a document, which is later posted to the financial staging table, or supports creation and resolution of a cost and/or quantity discrepancy.• It is important to note that On-Line matching is only required when a On- auto- group of invoices by PO/Location, in the auto-match process, result in an ‘Unresolved’ or ‘Multi-Unresolved’ status The retailer only ‘Multi- status. needs to concentrate in exceptions.
  15. 15. Level:Summary Level:◦ In summary level matching, invoice total extended cost is matched against receipts total extended costs and is done in the following way:◦ Extended Cost is defined as the unit cost for an item multiplied by the quantity (received or invoiced).◦ Invoice Total Extended Cost = Total Merchandise Cost in the Invoice◦ Receipts Total Extended Cost = Sum of all receipt extended costs linked to an invoice
  16. 16. Level:Detail Level:◦ In detail level matching, following things are done: Invoice Line Item quantities against Receipts Line Items quantities for the same item. Invoice Line Item unit costs against Receipts Line Items unit costs for the same item.
  17. 17. No Pre- Cost Pre- MatchingFetch Invoices, Receiptreceipts and PO Exists? Yes Summary One-to- One-to-one Detail Matching Matching Matching
  18. 18. Pre-Match:Cost Pre-Match:◦ This is only applicable on invoices where no receipt is available for matching yet. This process compares the invoice item costs to the PO costs in order to pre-empt any cost discrepancies that may arise after receipt of the goods.
  19. 19. Matching:PO/Location Summary Group Matching:◦ This sub-process handles all the invoices in “Ready for Match”, “Unresolved” or “Multi-Unresolved” status and the Receipts related with the PO (assign to the invoice) that already exist in the system.
  20. 20. Invoices Receipts Receipts for Total Extended TotalInvoices for Total Extended Total PO/Location Cost QuantityPO/Location Cost Quantity Receipt 1 50,000$ 2000 Invoice 1 50,000$ 1000 Receipt 2 50, 000$ 2000 Invoice 2 150, 000$ 5000 Receipt 3 100,000$ 2000 Totals: 200,000$ 6000 Totals: 200,000$ 6000 Status = ‘MATCHED’
  21. 21. Invoices Receipts Receipts for Total Extended TotalInvoices for Total Extended Total PO/Location Cost QuantityPO/Location Cost Quantity Receipt 1 50,000$ 2000 Invoice 1 50,000$ 1000 Receipt 2 50, 000$ 2000 Invoice 2 150, 000$ 5500 Receipt 3 100,000$ 2000 Totals: 200,000$ 6500 Totals: 200,000$ 6000 Status = ‘UNMATCHED’
  22. 22. Invoices ReceiptsInvoices for Total Extended Total Receipts for Total Extended TotalPO/Location Cost Quantity PO/Location Cost Quantity Invoice 1 50,035$ 1000 Receipt 1 50,000$ 2000 Invoice 2 150, 100$ 5000 Receipt 2 50, 000$ 2000 Receipt 3 100,000$ 2000 Totals: 200,135$ 6000 Totals: 200,000$ 6000 Status = ‘MATCHED’
  23. 23. One-to-One-to-One Invoice Matching: Matching:◦ This sub-process handles all the invoices in “Unresolved” or “Multi- Unresolved” status and the Receipts related with the PO (assign to the invoice) already exist in the system.
  24. 24. Invoices Receipts Receipts for Total Extended Total Status postInvoices for Total Extended Total Status post PO/Location Cost Quantity matchingPO/Location Cost Quantity matching Invoice 1 50,000$ 5000 Matched Receipt 1 50,000$ 5000 Matched Invoice 2 100,000$ 10000 Unresolved Receipt 2 25,000$ 2500 Unresolved Receipt 3 35,000$ 2500 Unresolved
  25. 25. Invoices ReceiptsInvoices for Total Extended Total Status post Receipts for Total Extended Total Status postPO/Location Cost Quantity matching PO/Location Cost Quantity matching Invoice 1 50,000$ 5000 Matched Receipt 1 50,000$ 5000 Matched Invoice 2 25,000$ 2500 Matched Receipt 2 25,000$ 2500 Matched Invoice 3 35,000$ 3000 Matched Receipt 3 15,000$ 2500 Unresolved Receipt 4 35,000$ 3000 Matched Receipt 5 75,000$ 10000 Unresolved
  26. 26. Line-Line-Level Matching: Matching:
  27. 27. Invoices ReceiptsInvoice Lines for Unit Status post Receipt Lines Status post PO/Location Item Cost Quantity matching for PO/Location Item Unit Cost Quantity matchingInvoice 1 550 Match Receipt 1 565 Match - Invoice line Item 1 5000$ 100 Match - Receipt line Item 1 5020$ 105 Match - Invoice line Item 2 10,000$ 200 Match - Receipt line Item 2 10,100$ 210 Match - Invoice line Item 3 15,000$ 250 Match - Receipt line Item 3 15,030$ 250 Match
  28. 28. Invoices Receipts Invoice Lines Unit Status post Receipt Lines Unit Status postfor PO/Location Item Cost Quantity matching for PO/Location Item Cost Quantity matchingInvoice 1 Match Receipt 1 Match - Invoice line Item 1 5$ 100 Match - Receipt line Item 1 5$ 70 Match Receipt 2 Match - Receipt line Item 1 5$ 30 Match
  29. 29. Invoices Receipts Receipt Lines Unit Status post Invoice Lines Unit Status post for PO/Location Item Cost Quantity matchingfor PO/Location Item Cost Quantity matching Receipt 1 550 UnresolvedInvoice 1 550 Unresolved - Receipt line Item 1 5000$ 100 Unresolved - Invoice line Item 1 12,000$ 100 Unresolved - Receipt line Item 2 10,000$ 200 Match - Invoice line Item 2 10,000$ 200 Match - Receipt line Item 3 10,000$ 250 UnresolvedInvoice 1 550 Unresolved
  30. 30. It is assumed that auto-match will not be run during the daywhen there are users online interacting with the system –Auto-match must only be run at night.It is assumed that invoice unit cost and the order’s unit costare expressed in the same currency. Auto-match will not doany currency conversion.It is assumed that quantities on the invoice are expressed inthe same unit of measure as quantities on the receipt. Auto-match performs no unit of measure conversion.
  31. 31. • Credit Notes can also be matched against Credit Note Requests in Invoice Matching System.• The On-Line Credit Note Matching process is identical to the Merchandise Invoice Matching process: • Summary Level for Credit Notes against Credit Note Requests • If Summary match is not possible, then the user needs to go thought the detail match, creating discrepancies as needed.
  32. 32. • Only performed if Supplier and Location have same VAT Region• VAT information must be entered at invoice header and detail levels• Header VAT breakdown can default from details• The Calculation Tolerance allows for rounding differences between header and detail• VAT on the invoice is validated against VAT on the RMS tables
  33. 33. • Three main options for handling VAT in ReIM: • Reconcile VAT • Flags invoice details as having VAT discrepancies if the invoice item VAT does not equal the system item VAT • Reconciliation must be done on the invoice details before matching • Always Use Invoice VAT • Writes an audit record if invoice item VAT does not equal system item VAT • Invoice is processed using the invoice VAT • Always Use System VAT • Does not allow invoice to be saved if invoice item VAT does not equal system item VAT
  34. 34. Discrepancy is generated when either of the following areout of tolerance between the invoice and receipt◦ Quantity◦ Cost◦ VATDiscrepancy resolution process allows the user to assignreason codes to discrepancies in the system.
  35. 35. Supplier has the reason: The cost stated in the invoice is the agreed one reason: and by mistake was incorrectly registered in ORMS. Retailer has the reason: The supplier is charging an incorrect cost and reason: should be debited. Based on each type of situation mentioned above, the user needs to tell the system the correct action to apply as shown below:Receiver Cost AdjustmentCredit Note Request CostDebit Memo CostDiscrepancy Write-off
  36. 36. Supplier has the reason: The quantity in the invoice is the correct received reason: and by mistake was incorrectly registered when it was received. Retailer has the reason: The supplier is invoicing an incorrect quantity and reason: should be debited. Based on each type of situation mentioned above, the user needs to tell the system the correct action to apply as shown below:Receiver Unit AdjustmentSplit ReceiptCredit Note Request QuantityDebit Memo QuantityDiscrepancy Write-off
  37. 37. The tolerance levels setup defines the amount of variance allowed betweenan invoice and a receipt.If the variance is within the defined tolerances, then the invoice can beconsidered a match.OReIM allows the user to define the tolerances at system level, supplierlevel or department level.The types of tolerances can be Summary Total Cost and SummaryQuantity, and Line Level Cost and Quantity.Differences can be in favor of the supplier or retailer.The tolerance can be defined in ranges. The lower limit is included whencalculating variance, while the upper limit is excluded.The Values of tolerance can be an amount or percentage.
  38. 38. The reason codes setup allows the user to maintain reasoncodes used to resolve discrepancies between receipts andinvoices.Associated to a reason code is an action that helps the userto resolve a discrepancy.
  39. 39. OReIM exports to a standard interface of data for OracleFinancials Accounts Payable and/or General Ledger:◦ Matched Invoices and Approved Documents Merchandise Invoices matched through auto-matching and on-line matching; Credit Notes matched on-line with Credit Note Requests Pre-Paid Invoices Non-merchandise Invoices Write – Offs

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