The document discusses plans to automate the invoice, receipt, and purchase order matching process in the procure to pay cycle. Currently, matching is done manually, causing delays in payments. The goal is to implement Advanced Shipment Notifications and Evaluated Receipt Settlement to automate the three-way matching. This would help ensure suppliers only ship against approved purchase orders and enable automated matching of invoices, receipts, and purchase orders to speed up payments. Potential risks include suppliers not agreeing to the new processes and needing to renegotiate contracts.

1. Theme: ASN + ERS Implementation Owner: Zelda Erdengiz Updated: 09-28-12
Background
The current ‘Procure to Pay’ cycle is largely affected by its dependence on manual entry causing delays in
matching and resulting in late payment. The goal is to automate the Invoice-Receipt-PO matching step.
Current State
For inventory Suppliers, the policy requires all invoices to have a valid receipt to match to. Oracle currently
does not provide a clear link between the two. Most of the matching is done via manual communication
between Purchasing, Accounts Payable, Receiving, and the Supplier. As a result, payments are issued late and
there is no real traceability or dependable data for performance metrics.
Procure to Pay Flow:
Proposal & Analysis / Evaluation of Alternatives
1. Top suppliers on ASN (Advanced Shipment Notification) + ERS (Evaluated Receipt Settlement).
2. ASNs will ensure the supplier only ships against an approved and valid Purchase Order.
3. ERS will ensure an automated 3 Way (PO-Invoice-Receipt) match.
4. Simplify PO approval policy
ASN + ERS:
Risks (Potential Roadblocks)
 Suppliers may not agree to creating ASNs and ERS Invoicing
 For ERS, contracts will need to be re-negotiated to align with payment on receipt (not shipment)
 Limited iSupplier licences
Implementation Schedule
Performance Metrics
ASN ERS VMI PO Ack
Completed 89.21% 73.14% 0.56% 36.05%
15-Oct 92.44% 90.88% 0.56% 37.13%
89.21%
73.14%
0.56%
36.05%
92.44%
90.88%
0.56%
37.13%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
ASN ERS VMI PO Ack
Completed
15-Oct
PO may
require re-
approval
Material ison
discrepancy
shelfuntil
resolved
Invoice on
payment
hold until
resolved
7-15 days
1-15 days
7-15 days
Issues delaying payment:
• Invoices sent before shipment is delivered
• Lost Invoices (not received or not entered)
• Matching invoice to receipt is manual and errors are often made
• Physical material received does not match invoice
• Supplier sending shipment against un-approved Purchase Order
• POs having to go through re-approval due to Qty / Pricing
adjustments
Automated 3-
Way Match