Purchasing and Accounts

Payable Training
 Agenda
Procure to Pay Process Walk-Through
Examples to Prevent Matching Issues and Pre-
mature encumbrance (PO) closing
List Current Issues
Next Steps
Procure to Pay Process - Workflow
 Procure to Pay Process BATCH Processes

Purchasing Processes
1. Quick source requisitions
into POs
2. PO Budget Check
7 Days a Week
3. PO Document Tolerance
1. 10AM to 10:15AM
4. PO Dispatch
2. 1:30PM to 1:45PM
5. Publish Outgoing Message
3. 4:30PM to 4:45PM
to SciQuest
4. 7:00PM to 7:15PM
 Procure to Pay Process BATCH Processes

Accounts Payable Processes

1. AP Voucher Build - 8:00PM
2. AP Voucher Matching - 8:05PM
3. AP Voucher Budget Check - 10:00PM
4. AP Voucher Doc Tolerance - 10:30PM
5. AP Voucher Post - 11:00PM
6. AP Payment Post - 11:30PM
7. AP Voucher Post - 1:00AM

7 Days a Week
 Procure to Pay Process BATCH Processes

Additional Batch Processes

1. PO Reconciliation - 1:15AM
2. PO Budget Check - 1:30AM
3. REQ Reconciliation - 1:45AM
4. REQ Budget Check - 2:00AM

7 Days a Week
 Procure to Pay Process Walk Through
1. Requisition
2. Purchase Order
3. Receipt
4. Voucher
 Matching: Purchasing & APs
Relationship
Matching is the process used to compare AP
Vouchers with Purchase Orders and Receipts
(if receiving required), to ensure that GRU
only pays for the goods and services that have
been ordered and received
2-way match AP voucher & PO
3-way match AP voucher, PO & Receipt
 Matching: Purchasing & APs
Relationship

Good Relationships require good

communication

Decisions made by each department can

affect the other
 Purchasing Responsibilities
Ensure PO is setup correctly
Receiving Options
Required
Optional
Do not receive
Matching Options
Full
No match
All lines on a PO should have the same Matching
requirement
Example of Mis-matched Matching Options on a PO

Match Status on the PO Header?

 Accounts Payable Responsibilities
Understand how creating a PO Voucher can affect
Matching results
Understand what the Match Exception means
BEFORE deciding to override it, and what the effect
will be if it is overridden
If necessary, request the Buyer to correct the PO
Matching and/or Receiving settings BEFORE paying
the invoice
 Accounts Payable Responsibilities
Creating Voucher user Worksheet option
Vendor Location and Address is pulled from the
Vendor NOT the PO
Adjust the Quantity or Amount BEFORE copying
the PO/Receipt into the voucher
Example Reducing Qty BEFORE Copying to Vchr
Note: This will help reduce pre-mature un-encumbering of POs.
 Example of Vendor Addresses
Entering the
Vendor ID on the
Add a New Value
page, will cause
the Default
Vendor Location
and Address from
the Vendor File to
populate on the
Voucher
 Example 1: Override OR Not to Override
PO Qty = 5
Vchr Qty = 5
Receiving Required, but No receipt created
Match exception: Vchr quantity does not equal sum
of receipt qty; No receipts found
If you override, the PO status will get updated to Partially Matched, but will NOT get
updated to Matched.
The PO will NOT be eligible to be closed. The Purchasing Department will have to
manually force it to close.
The PO CAN be vouchered again, since the PO Match Status was not updated to
Matched. However, Doc Tolerance will get an exception, which is a good double
check, but will also have to be overridden.
 Example 2: Override OR Not to Override

PO Qty = 5; Unit Price = $20.00

Vchr Qty = 5; Unit price = $17.00
Receiving NOT Required
Match exception: Unit price does not equal PO unit
price
First, determine that the invoice amount is correct.
If you determine that the final price is less than the PO amount, then it is OK to
override the Match exception.
Then, the PO Match Status is updated to MATCHED, since the full Qty was
vouchered.
The PO will be eligible to be closed, without further intervention.
 Example 3: Override OR Not to Override

PO Location: Main Address Seq 1

Vchr Location: Remit Address Seq 2
Match exception: Vendor does not equal PO vendor

If you do have a valid reason (the invoice), to use a different vendor addresss,
then it is OK to override the Match exception.
Then, the PO Match Status is updated to MATCHED, since the full Qty was
vouchered.
The PO will be eligible to be closed, without further intervention.
 Example 4: Override OR Not to Override

PO Amount = $445.43
Receipt Amount = $445.43
3 Vouchers: 1-$285.84, 2-$155.42 & 3-$4.17
Match exception: No Receipt found, but unmatched
ones exist; Vchr line amt > Sum of received amount
You should not override these Match Exceptions.
Go to the voucher and associate the receipt.

In this case, there are 3 vouchers and 1 receipt. Due to the document
association rules, the system will not automatically match them to each other.
 Example 5: Override OR Not to Override

PO Line Amount = $31.40

Vchr Line Amount = $6.28
Previously Vouchered Line Amount = $31.40
Match exception: Life to Date > Sched Amt # % ext
tol
This match exception needs to be researched, to determine the best way to
handle the match exception.
The Match Exception tells us that the voucher amount EXCEEDS the PO
tolerance amt.
Determine if there is a valid reason for Exceeding the PO Amount.
Choose which action to take:
1. Override
2. Correct the voucher amount
3. Close/Delete the voucher if it is a duplicate
 Current Issues
Incorrect category codes/account codes on
requisitions
 Current Issues - Contd
Electronic Credit Memos from Health eShop
Vendors

Example: PO for 5 items, the department only

received 4 of the items, and we receive a credit
memo for the 5th item
 Current Issues - Contd

998 POs are current marked as in process

AP cannot pay them until they are not marked
in process
Waiting for IT to run a DBI to correct them
 Current Issues Contd
Zero Dollar Lines
Is this causing issues?
What is the process?
Are the requesters receiving all the lines?
 Current Issues Contd
Helpful departmental-user communications
Keep in mind that the departmental users do not
use the same language, abbreviations or slang
that we use in everyday processing
Be customer-service oriented
Do not make assumptions
Current Issues More?
 Next Steps
Meeting with Greg & Donna on the 20th
Resolving Current Issues
More training/issues meetings
Thank You!