The document summarizes the current and future processes for account payables in 3 levels of detail. Currently, payables transactions like salaries, purchases, and expenses are recorded manually. Future processes will integrate supplier maintenance, invoice processing, payment processing, and period-end closing into an automated workflow within a new system. This will help match invoices to POs/contracts electronically and calculate payables aging automatically. However, gaps still exist between current and future processes that need to be addressed during implementation.

1. EVN - IFMMIS PROJECT
ACCOUNT PAYABLES

2. Index
01 List of payable transactions
02 Current Processes
03 Future Process (High Level)
04 GAPs

3. Account Payables – List of Payable
Transactions
 Payable Transactions:
 Salaries.
 Purchasing
 Upgrading and Repair Expense.
 Other expenses.
 Internal payables.

4. Modules Interactions – High Level
 Current Business Process
Level 1: Modules Interaction
System
Interface
Manual
or TBC
TBC: to be confirmed if
external systems can
provide or accept the
interface format as
designated by FMIS-MMIS
Billing
(Telecom)
External
Systems
FMIS
Module
CMIS
(Electricity)
Receivables
Projects
AR Invoice
Payment
Financial Reports
FMIS
Asset Details
Requisition
Financial Plan Report
Collection
Supplier Invoice
Fixed Assets
Payables
Purchase Order
Financial Planning
General Ledger
Manual

5. Overview - Future
CASH
MANAGEMENT
GENERAL
LEDGER/ BUDGET
TREASURY
RECEIVABLES
PAYABLES
PROJECTS
FIXED ASSETS
PURCHASING INVENTORY ORDER MGMT
MANUFACTURING
PAYROLL
CHANGE MANAGEMENT & COMMUNICATION

6. Record Payables in Current System
HR Department:
-Review the
timesheet and
create salaries
table
Financial Dept.
Payables
 Enter accounting entries for
payables
 Request for approval by Chief
Accountant and Director
 Transfer document to Payment
Accountant
Bank
Statement
Reconciliation
Payments
Dr Cr
HR Dept.
• Review the
timesheet and create
salaries table
• HR Chief approves
salaries table
• Transfer to
Financial Dept
Material Dept.
• Bids Processing and sign the contract
• Receiving the material, machines…
• Transfer to Financial Dept
FMIS
Subsidiaries
• Collect expenses and generate
report
• Request for payment the
expenses

7. Account Payables – List of Payable
Transactions
 Payable Transactions:
 Salaries.
 Purchasing
 Upgrading and Repair Expense.
 Other expenses.
 Internal payables.

8. Payroll – Current Processing
AP Module
Payroll Processing
Finance and Accounting Dept.
Finance and Accounting Dept. Director
Director
HR Dept.
HR Dept.
Departments
Departments
Approve ?
Chief Acct
Approve ?
No
No
Yes Approve ?
Yes
Timesheet
Timesheet
2. HR Department
review and adjust
timesheet. Calculate
salary for
Departments, Units
Salaries Table
Salaries Table
3. Accountant review and
add the other payables
and receivables with
employee ex: social
secure,...
No
Yes
1. Create/ Update
Time Report
4. Pay salaries
Start
End

9. Account Payables – List of Payable
Transactions
 Payable Transactions:
 Salaries.
 Purchasing
 Upgrading and Repair Expense.
 Other expenses.
 Internal payables.

10. Procure to Pay – Current Processing
AP Module
Procure to Pay Processing
Director
Director
Financial Department
Financial Department
Materials
Department
Materials
Department
Planning Department
Planning Department
Approve ?
No
Yes
No
No
Yes
Yes
5. Payment
Approve ?
Chief Acct
Approve ?
4. Create/ Adjust Invoice
Purchasing Plan
Contract
Invoice
1. Create Purchasing
Plan
3. Receiving
2. Prepare and sign
purchasing contract and
create PO
Start
End

11. Account Payables – List of Payable
Transactions
 Payable Transactions:
 Salaries.
 Purchasing
 Upgrading and Repair Expense.
 Other expenses.
 Internal payables.

12. Internal Payable Processing (Subsidiaries) -
Current Process
Tip: This process is only applicable for Subsidiaries
Internal Payables Processing – Subsidiaries
Director
Director
Financial Department
Financial Department
Chief Acct
Approve ?
No
AR/ AP
Netting ?
Approve ?
No
Yes
1. Collect internal
payables through
internal payables
account.
3. Payment to Company
2. Account for
decreasing internal
payable balance with
company
Yes
No
Yes
Request for
payment
Official
correspondence for
payment type: cash or
AR/ AP Netting
Start
End

13. Internal Payable Processing (Company) -
Current Process
Tip: This process is only applicable for company with subsidiaries
Internal Payables Processing - Company
Director
Director
Company
Company
Subsidiaries
Subsidiaries
No
No
Yes Approve ?
Approve ?
3. Review the request
for payment and
create an statement
for payment
1. Subsidiaries create next
year’s expense plan or
budget at the end of previous
year and request for approval
2. Subsidiaries collect
expenses and create request
for payment to company
5. Payment
Yes
Expense Planning
Statement or Budget
Statement
Request for Payment
Statement for
Payment
AR/ AP
Netting ?
4. Create entry for
decreasing internal
balance with
subsidiaries
Official
correspondence for
payment type: Cash
of AR/ AP Netting
Yes
No
End
Start

14. Future Process

15. Future Process
 Supplier Maintenance
 Invoice Processing
 Payment Processing
 Period – End Closing

16. Supplier Maintenance – Future Process
Supplier Maintenance
Financial and Accounting Department
Financial and Accounting Department
Start
Contract, Invoice, Files...
New supplier ?
End
Maintenance this
supplier ?
No
Yes
Yes
No
3. Create Supplier header
1. Find Supplier
2. Update supplier site
information
4. Create supplier site

17. Supplier Maintenance – Future Process
• The supplier information is captured in the current system with
name, address and can be opened up to 3 levels, which is:
• Level 1: Supplier Name
• Level 2: Project Code
• Level 3: Sub project
• In the future process, supplier maintenance has the following
features:
• Supplier and supplier site. Supplier site is the location of
supplier. Ex: EVNIT is located in Hanoi and HCM city.
Supplier is EVNIT and Supplier site is Hanoi and HCM city.
• Capture almost all of supplier information: tax registration,
bank account, classification….
• Or, User can define the Descriptive Flex Field (DFF or
additional field) to capture more information of supplier

18. Future Process
 Supplier Maintenance
 Invoice Processing
 Payment Processing
 Period – End Closing

19. Advance Payment Processing (with PO) –
Future Process
Advance Payment Processing with PO
Financial and Accounting Department
Financial and Accounting Department
Material Department
Material Department
No No
Yes
Yes
Adjust
Cancel
Pass validation ?
Contract
3. Invoice validation
Adjust/ Cancel ?
Invoice
Start
4. Hold Invoice
End
1. Enter header (invoice
with PO)
5. Manual Release
Submit to financial
and accounting
department for
entering the invoice
Contract, Invoice, Approved
Purchasing Plan...
Allow manual
release ?
2. Match to PO
6. Pay in Full

20. Advance Payment Processing (without PO) –
Future Process
Advance Payment Processing (without PO)
Financial and Accounting Department
Financial and Accounting Department
No No
Yes
Yes
Adjust
Cancel
Pass validation ?
End
Start
Allow manual
release ?
1. Enter header and
distribution (standard
invoice)
Invoice
2. Invoice validation
4. Manual Release
3. Hold Invoice
Adjust/
Cancel ?
5. Pay in Full

21. Invoice Processing (without PO) – Future
Process
Invoice Processing
Financial and Accounting Department
Financial and Accounting Department
No No
Yes
Yes
Adjust
Cancel
Yes
No
Advance exist ?
7. Invoice validation
9. Manual Release
3. Apply with advance
Payment
Processing
End
Pass validation ?
Allow manual
release ?
Invoice
Adjust/
Cancel ?
2. Enter header and
distribution (standard
invoice)
8. Hold Invoice
Start

22. Invoice Processing (with PO) – Future Process
Invoice Processing with PO
Financial and Accounting Department
Financial and Accounting Department
Material Department
Material Department
No No
Yes
Yes
Adjust
Cancel
Yes
No
7. Invoice validation
Advance exist ?
9. Manual Release
Adjust/ Cancel ?
Invoice
6. Apply with advance
8. Hold Invoice
Allow manual
release ?
Submit to financial
and accounting
department for
entering the invoice
5. Match to PO
Contract
4. Enter header (invoice
with PO)
Contract, Invoice, Approved
Purchasing Plan...
Start
End
Pass validation ?
Payment
Processing

23. Invoice Processing – Future Process
• PO Information and project information can be captured in invoice
• User can also capture the payment information in the invoice: the
total invoice amount, paid amount and the remain.
• The Oracle EBS supports the online invoice approval processing.
• Using payment term to calculate the payable aging

24. Future Process
 Supplier Maintenance
 Invoice Processing
 Payment Processing
 Period – End Closing

25. Payment Processing – Future Process
Payment Processing
Financial Department
Financial Department
2. Select invoice
Start
Check or Payment Order
or Voucher
End
1. Select supplier
3. Assign Bank Account to
Pay from
4. Assign payment Method
and save

26. Period – End Closing
Period End Processing
Financial Department
Financial Department
No
Yes
Yes
No
Yes
No
GL_ Month-End
Processing
Start Hold Invoice ?
Payment ?
Payment
Processing
Transactions are
accounted?
Invoice on Hold Report
2. Run and review the
Invoice on Hold report
8. Close Accounting
Period
7. Print Month – end
report
6. Run the Unaccounted
Transactions Sweep
Program
5. Transfer to General
Ledger
4. Run the Payables
Accounting Entries
report
3. Release Hold
9. Open next Period

27. Benefits
 The difference between current process and future process:
 Supplier information is organized by object code while in the future system, all
supplier information is maintained through standard fields and DFFs.
 Currently, users must base on the contracts (manual) to match invoice with
receive, PO and payment term. In the future system, contracts, POs and
receiving will be record in the system and automatically match to invoices.
 Payables aging will be automatically calculated until user selects the payment
term for invoices

28. GAPs
 Issues:
 Current Process
 Future Process