This document outlines Scarborough Borough Council's plans to implement a Procure to Pay (P2P) process. Currently, only 25% of spending goes through purchase orders. The new P2P process will require all purchases to be made through purchase orders to improve budgetary control, compliance, and efficiency. It will be implemented in Technology One and rolled out between June and September 2012 through training workshops and guidance materials. The session will cover the new requisition, approval, receipt, and invoice processes.

1. Northgate Public Services
Scarborough Borough Council
Procure to Pay
June 2012

2. Northgate Public Services
Content
 What is Procure To Pay (P2P)
 Why introduce P2P
 Current practices
 New Process
 Impact on the Council
 Timetable
 What we will cover in today’s Session

3. Northgate Public Services
What Is Procure To Pay (P2P)

4. Northgate Public Services
 Procure To Pay refers to the business processes that cover activities of
requesting (requisitioning), purchasing, receiving, paying for and
accounting for goods and services. P2P is often associated directly with
the technology that supports the processes it describes, which for
Scarborough Borough Councils, is Technology One.
 Introducing procure to pay is one of three transformation changes as
part of the review of Financial Services
 The P2P process was intended to be introduced as part of the
implementation of Tech1 but was sidelined for a variety of reasons
 This process has a number of advantages as part of strong financial
governance and control and will introduce a high degree of discipline in
the procurement of goods and services.

5. Northgate Public Services
Why Introduce P2P
The introduction of P2P to Scarborough Borough Council will help us:-
 Increase our understanding on how money is spent
 Act upon that information to increase compliance to contracts
 Negotiate better pricing
 Reign-in maverick buying
 Negotiate and take more discounts
 Prevent suppliers from overcharging
 Increase visibility
 With increased Budgetary Control
 Understand and control spend
 Increase Audit Controls
 With more efficient processing, facilitate a cultural change in how we
order our goods/services

6. Northgate Public Services
Current Practices
Some examples of current bad practices include:-
 Only 25% of spend going through a PO
 Officers not raising orders
 Failure to accurately maintain orders
 Goods or services being ordered without budget holder approval
 Failure to act on workflow items
 Suppliers sending invoices without a valid PO number
 Users buying goods/services from unapproved, non-contract
suppliers
 Officers emailing other officers to raise an order for them
 Officers who have received T1 training on how to raise an order
emailing another officer to raise an order
 Non compliance with Contract Procedure Rules and Procurement
Guidelines

7. Northgate Public Services
New Process
Some of the processes being introduced include:-
 All purchases (few exceptions) will be via a purchase order
 Approval will be before spend is incurred not after
 Spend will be checked against available budget prior to authorisation
 Move to more on line internal catalogues
 Engaging with suppliers to support process and informing them that
invoices cannot be processed without an order number
 Exceptions
 Utility bills – already excluded from PO process and will continue
 Emergency purchases, possibly outside of normal working hours. In
which case a retrospective order will need to be raised as soon as
possible after the event.

8. Northgate Public Services
Impact on SBC
 More compliance with procurement and financial
procedures and regulations
 More efficient, cost effective ways of working
 Officers would be required to raise a requisition rather
than send an instruction to another officer to do it for
them
 Tighter control on supplier spend
 More training and awareness needed to mitigate negative
impacts

9. Northgate Public Services
Timetable
 April 2012 – Approval from DT to introduce process
 April 2012 – Presentation to SMT
 May 2012 – determine detailed technical system requirements
from Tech1
 May 2012 – Prepare training workshops
 June/July - 2012 – Deliver training on system and change
management workshops to all staff
 June/July 2012 - agree measures for system restrictions and
controls
 June/July 2012 – write to all suppliers to inform that SBC cannot
process an invoice for payment without a purchase order number
 August 2012 – issues guidance notes to all staff and place on
intranet
 1st September Go live with process

10. Northgate Public Services
What we will cover in today’s training session
 Steps before raising a requisition
 How to raise a Purchase Requisition
 How Requisitions are approved and released
 The receipting
 Invoicing process
 Frequently Asked Questions (FAQs)
 Multiple Choice Questions