FMS-SAP Rollout
(Requisition to Payment)
October 2011
0
Meeting Objectives
•
•
•
•
Discuss the Requisition to Payment (RTP) Process Map of Star Songs, Inc.
• As-Is Business Process
• Gap Analysis
• To-Be Business Process using FMS – SAP
Identify additional activities or scenarios that may have to be addressed
Obtain sign-off from the process owners
Define next steps for the project
1
Today’s Situation
•
•
The A/P Section serves AFPI, SRI, and
SSI. Currently, three (3) personnel
perform the functions of the accounts
payable section.
Head
Integrated
Accounts Payable
Systems being used in the generation
of invoice and recording of payments
are:
SYSTEM
COMPANY
Invoice Generation
Payment
Recording
AFPI
BDS* linked to SAP
SAP
SRI/SSI
Biz Box
Biz Box
A/P Staff
Junior
Accountant
A/P Staff
Junior
Accountant
2
FMS Process Overview
Order to Cash
Budgeting & Margin
Analysis
Requisition
Requisitionto
to
Payment
Payment
Journal Entry
Accounting &
Reporting
Financial Asset
Management
(Treasury)
Fixed Asset
Management
3
Process Overview – Requisition to Payment
OBJECTIVE: To maintain an integrated, accurate vendor master database,
enable vendor analysis capability and to simplify the process in processing
payments and liquidating cash advances.
Manage
Requisition
Manage
Purchase of
Goods and
Services
Process
Receipt of
Goods and
Services
Process
Invoice and
Payments
Manage Purchasing Master Data
Reporting and Monitoring
4
Requisition to Payment
RTP Sub-Processes
Objectives
RTP 1.0 Manage Requisition
•
To minimize delays through quick and
accurate preparation of purchase
requisitions, at the same time ensuring that
the requisitions are prepared at the right
time to provide enough lead-time for
procurement.
RTP 2.0 Manage Purchase of Goods and
Services
•
To shorten the purchasing cycle time.
To enable users to analyze vendor particulars
and monitor purchase commitments.
RTP 3.0 Process Receipt of Goods and Services
•
•
To improve inventory management through
these functions:
a.
Efficiently and accurately receive material
b. Maintain an organized warehouse
c.
Provide data integrity of materials ordered
for future material planning
d. Minimize inventory shrink and carrying cost
5
Requisition to Payment
RTP Sub-Processes
Objectives
To simplify and streamline invoice and
payment process.
RTP 4.0 Process Invoice and Payment
•
RTP 5.0 Manage Purchasing Master Data
•
To efficiently manage the RTP process
by managing the material master,
vendor master and other purchasing
master data in SAP.
RTP 6.0 Report and Monitor
•
To provide timely, real-time, integrated
and accurate online reports to the end
users and management as well.
6
As-Is and To-Be Processes:
7
To-Be Highlights
• Institutionalized standard electronic data request procedures to ensure accuracy,
consistency and completeness of master data
• Due diligence and prudence will be exercised before accomplishment of data request
form is initiated
• Accomplishment of data request forms will be governed by service level agreements
• Data request form will be electronic (via Lotus Notes)
• Vendor Master Display should be given an access to the requestors.
• A New Vendor Account Group is to be created solely for Composers
8
As-Is: Vendor Master Maintenance
9
As-Is: SSI Vendor Master Maintenance
A/P Staff
Receive RFP from Requestor
Supporting Docs.
Vendor already
in the system?
Yes
Payment Process
No
Call attention of requestor to
provide copy of BIR 2303,
Sample OR or TIN ID
Received
documents?
No
Follow-up on requestor
Yes
Proper
documents?
Yes
Open vendor file
maintenance
Choose and fill-in required
details
Save
No
Return documents and request
for new one
10
Vendor Maintenance in Bizbox
Required Fields for
Vendor Creation
To note: abbreviation = vendor number (w/c is continuous)
11
Business Process Gap Analysis
Issues/Risks
Impact
Proposed Solutions
Sole Vendor List for Star
Songs
Similar vendors applied
with Star Records are
doubled on the data
maintenance
Extend applied vendor
codes in Parent to Songs
when in SAP
There is no Request for
Maintenance procedure
There is no real control
procedure for vendor
creations
A request procedure will
be implemented upon
production in SAP
12
TO-BE:
MANAGE PURCHASING MASTER DATA
a. Composer as vendor
b. Non-composer as vendor
13
To-Be: Vendor Master Data
Composer as Vendor
SSI – Publishing Officer
SSI-A/P Staff
ROHQ-A/P
Collect Supporting Documents
from New Vendor
Email request for creation of
LN-Vendor Master Data
Request to A/P Staff and
forward Supporting
Documents.
Supporting
Create Request for Vendor
Creation via LN-Vendor
Master Data Request
Database
Supporting
Creation of
Vendor in SAP
Docs.
Docs.
Supporting Documents:
BIR 2303, Sample OR or TIN ID
Non- Composer as Vendor
Requestor
SSI-A/P Staff
ROHQ-A/P
Collect Supporting Documents
from New Vendor
Email request for creation of
LN-Vendor Master Data
Request to A/P Staff and
forward Supporting
Documents.
Supporting
Docs.
Supporting Documents:
BIR 2303, Sample OR or TIN ID
Create Request for Vendor
Creation via LN-Vendor
Master Data Request
Database
Supporting
Creation of
Vendor in SAP
Docs.
14
Vendor Maintenance
in SAP
15
To-Be: Creation of Vendor in SAP
SSI A/P Staff
ROHQ-A/P
Receives LN-Request for
Vendor Creation
Adjust request and
send back
Extend to SSI
Review completeness of
request
Complete?
Yes
Vendor
exists?
No
Send back with comments
No
Yes
Applicable
to extend?
No
Create new vendor in SAP
Receive notification
on request status
Update LN Database
ROHQ-A/P already has standards internally set
to apply for creating vendors.
16
As-Is: Royalty Share Computation
Process Flow
17
As-Is: Royalty Process Flow
Supervisor
Rev. Acctg & Royalty Admin
Royalty Administrator
Obtain monthly sales data
from Bizbox
save data from bizbox into
excel format
Fix raw data from bizbox
into the template of Sales
Report
Review list of songs and
composers .
Place complete details in
the report template
What
purpose?
Payout
A
JV Entry
Place at JV
template for
uploading in
Bizbox
Print out
summarized
report
Create entry with
gross amount for
IT’s reference
Forward to G/L for
filing
IT
Upload data under
specified entry
Verify data
uploaded
Yes
Report
okay?
No
Prepare /Edit
summarized report
(per Invoice) with
noted JV number
18
As-Is: Royalty Process Flow
Royalty Administrator
Supervisor
Rev. Acctg & Royalty Admin
A
Consolidate all JV entries in
Bizbox from January to
June or July to December
Attach supporting
documents and route for
approval
Retrieve collection report
in Bizbox with all paid
invoices
Less uncollected invoices
and advanced royalties
from consolidated data
No
Approves?
B
Yes
Returns documents to
Royalty Administrator
Prepare/Edit manual RFP
form and supporting
documents
CFO
Yes
No
Approves?
B
A/P
Forward documents to A/P
Pay-outs are scheduled semi-annually.
Only paid invoices are processed for pay-out.
Process payment
19
Star Songs – Royalty Sales Report
20
Business Process Gap Analysis
Issues/Risks
Impact
Proposed Solutions
Extraction of data from
Bizbox to Excel to do
computations of Royalty
The process is inefficient
and time consuming.
Systemized module in SAP
Manual computation of
Royalty
Prone to human error
Systematize computation
of this process in SAP
RFP forms are created
manually
Possible to get lost or be
misplaced over routing
Apply LN-RFP then route
for manual approval
21
To-Be: Royalty Share Computation
Process Flow
22
To-Be: Royalty- Composer Process Flow
SSI – Financial Analyst
Generate Sales Report in
SAP based on Songs
Database and transaction
posted on period chosen
RFP Creation – Royalty
Share
Assumption: Publishing Officer always ensures
the Songs Database is updated.
23
To-Be: Royalty- Composer Process Flow
SSI - Financial Analyst
Supervisor
Revenue Acctg. And Royalty Admin.
SSI – G/L Staff
Generate Sales Report based
on Songs Database
Print report and forward to
supervisor
RFP Creation –
Royalty Share
Acknowledge receipt of Email. CC: G/L Supervisor/FM
Review report
Yes
Accurate?
Update Songs
Database
No
E-mail G/L Staff to update
Song Database
Supporting
Docs.
Receive automatic
notification that
Song Database has
been updated
Supporting Documents:
New contract/Approved notice from SSI-Head
of New Sharing Rates
24
As-Is: Advance Royalty Payment
•
•
Based on contract agreement
Usually first transactions by Composer with SSI
25
As-Is: Advance Royalty of Recording Company to SSI
Client
Billing
A/P
Creates billing
Payment Process
Flow
Informs SSI to use one
of their Songs.
Publishing Officer
Creates RFP for Advance
Royalty
Forwards RFP to Royalty
Admin
Manual RFP
Receives Billing from SSI
Royalty Administrator
Pay SSI on the Royalty
Advance
Upon knowledge of receipt of
payment by SRI, have RFP
undergo approval process
26
As-Is: Advance Royalty of SSI to Composer
Publishing Officer
Create RFP based on contract
Royalty Administrator
Supervisor
Rev. Acctg & Royalty Admin
Attach supporting
documents and route for
approval
Approves?
No
B
Yes
Returns documents to
Royalty Administrator
Forward RFP to Royalty Admin
Manual RFP
Forward documents to A/P
A/P
Process payment
CFO
Yes
Approves?
No
27
Sample: Advances Entries
28
As-Is: Payment Process Flow
29
As-Is: Payment Process Flow
A/P Staff
A/P Supervisor
Review RP and supporting
documents
Gather and review
documents from Requestor
Supporting
documents
RFP
No
Edit details as
requested.
A
Supporting
Docs.
Yes
complete?
Sign documents and
return to A/P Staff
No
Coordinate with
concerned parties
Update monitoring
template in Excel
Yes
A
Encode/edit details
of request for
payment in Bizbox
A
Approves?
Coordinate changes as
requested.
CFO
Review RFPs and supporting
documents
Manual RFP
Supporting
documents
Print RP and CV from
Bizbox and attach
supporting documents for
Disbursement
1.
2.
3.
4.
Contract/s
RFPs
Checks
Check Voucher
Approves?
Endorse documents
to the 2nd signatory
Supporting
documents
Follow Up
No
Signed?
No
Yes
Sign documents and
return to A/P Staff
Cashier
Yes
To Note:
RFPs from G/L consist of Business Permit payments/ License
RFPs from Royalty Admin. is for royalty payments
Endorse CV and Check
to Cashier for
releasing.
Release Payment
30
Business Process Gap Analysis
Issues/Risks
Impact
Proposed Solutions
Manually reviews and
encodes information for
RFP requests
Long process time
Apply LN-RFP procedure,
retain manual approval
after LN approvers.
Monitors status of
approval through excel
The process is time
consuming
Apply automatic
notification feature used
by LN-Forms for approval
monitoring.
31
TO-BE: RFP CREATION AND PAYMENT
PROCESS FLOW
a.
b.
c.
d.
e.
Creation of RFP for Advance Royalty 1st Payment
Creation of RFP for Composer Share Succeeding Payments
Creation of RFP for Non-composer Related Transactions
Creation of RFP for Replenishment of Petty Cash
Payment Process Flow via ROHQ – A/P
32
To-Be: RFP for Advance Royalty 1st Payment
Publishing Officer
Head SSI
A/P Staff
A
Create/Edit request via LNRFP Form. Print supporting
documents for review
Review RFP
Review LN-RFP
Supporting
Docs.
Supporting
Docs.
Indicate details of contract
with contract’s control
number as reference.
No
Yes
Approve?
Approve?
No
Yes
Print approved LN-RFP and
attach supporting
document for routing
Comment on the
supporting document
and return for editing
A
SSI- A/P Staff
FM and CFO
SSI- A/P Supervisor
Review RFP
Review RFP
Supporting
Docs.
Supporting
Docs.
Forward to ROHQ for
Payment Processing
Yes
Approve?
No
Comment and return
request to requestor via
A/P Staff
Yes
Approve?
No
Comment and return
request to requestor via
A/P Staff
33
To-Be: RFP for Composer Share
Succeeding Payments
Finance Analyst
Supervisor
Revenue Acctg. And Royalty Admin.
A/P Staff
A
Create/Edit request via LNRFP Form.
Review RFP
Review LN-RFP
Supporting
Docs.
Supporting
Docs.
Print supporting
documents for review
No
Yes
Approve?
Approve?
No
Yes
Print approved LN-RFP and
attach new supporting
documents for routing
Comment on the
supporting document
and return for editing
A
SSI- A/P Staff
FM and CFO
SSI- A/P Supervisor
Review RFP
Review RFP
Supporting
Docs.
Supporting
Docs.
Forward to ROHQ for
Payment Processing
Yes
Approve?
No
Comment and return
request to requestor via
A/P Staff
Yes
Approve?
No
Comment and return
request to requestor via
A/P Staff
34
To-Be: RFP for Non-Composer
Related Transactions
Requestor
Department Head
A/P Staff
A
Create/Edit request via LNRFP Form.
Review RFP
Review LN-RFP
Supporting
Docs.
Supporting
Docs.
Print supporting
documents for review
No
Yes
Approve?
Approve?
No
Yes
Print approved LN-RFP and
attach new supporting
documents for routing
Comment on the
supporting document
and return for editing
A
SSI- A/P Staff
FM and CFO
SSI- A/P Supervisor
Review RFP
Review RFP
Supporting
Docs.
Supporting
Docs.
Forward to ROHQ for
Payment Processing
Yes
Approve?
No
Comment and return
request to requestor via
A/P Staff
Yes
Approve?
No
Comment and return
request to requestor via
A/P Staff
35
To-Be: RFP for Replenishment of Petty Cash
Petty Cash Custodian
A/P Staff
Create/Edit request via LNRFP Form.
Review printed LN-RFP
Print LN-Form and route
for approval
A/P Supervisor
Review RFP
Supporting
Docs.
Supporting
Docs.
No
No
Approve?
Comment on the
supporting document
and return for editing
Yes
SSI- A/P Staff
CFO
FM
Review RFP
Review RFP
Supporting
Docs.
Supporting
Docs.
Forward to ROHQ for
Payment Processing
Yes
Yes
Approve?
Approve?
No
Comment and return
request to requestor via
A/P Staff
Yes
Approve?
No
Comment and return
request to requestor via
A/P Staff
36
Sample: LN-RFP Form
37
To-Be: Payment Process Flow
A/P-ROHQ Staff
Gather fully approved RFPs
from SSI-A/P
ROHQ- A/P Team Lead
Scan for IAS (Invoice
Automation System)
Review request for payment in
webcycle
RFP
Email SSI-A/P of
disapproval
Send back with
comment of
disapproval
No
Approve?
Yes
ROHQ-Treasury
ROHQ- A/P Head
Review request for payment in
webcycle
Follow-Up
No
All Signed?
Yes
Forward to Cashier
for releasing of check
Prints Checks and routes to
authorized signatories
To Note:
Authorized Signatories are as
defined in Parent
Yes
Send back with
comment of
disapproval
Approve?
No
To Note:
For Check Cutting, instead of releasing from the Cashier,
ROHQ-Treasury will just upload data in the bank’s system and
the bank will release and print the checks.
38
As-Is: Generation of Summary Report for
RFP Transactions and Disbursements
39
As-Is: Summary Reports of RFP Transactions and
Disbursements Process Flow
A/P Staff
IT
Goes to Journal Book window
of BizBox.
Encode required fields
Run Re-query
Run re-query to get all
request for payment
transactions of the specified
month
Refresh system
Ask assistance from IT
Yes
Review details
No
With
unrecognized
variance?
A/P Head
No
Print report
No
Incorporate changes as
requested
Correct?
Yes
Forward to G/L for filing
40
Journal Books window in Bizbox
For Disbursement
Summary, choose “Cash
Disbursement Book”
Required Fields
41
Sample: Monthly RFP Transaction Report
42
Sample: Monthly RFP Transaction Report
43
As-Is: Cancellation of Payment
44
As-Is: Cancellation of Payment
A/P Staff
A/P Head
Receive notice to cancel
payment
Write on printed document
“For Cancellation” with
reason for cancellation
Yes
Approve?
Note approval on
cancellation
No
Follow-up approval
No
End
For
re-processing?
G/L Cancellation
Process
Return document to A/P
Staff
Yes
Payment Process
45
Business Process Gap Analysis
Issues/Risks
Process will change upon
movement to ROHQ
Impact
To-Be process not yet
defined
Proposed Solutions
Will wait upon the
finalization of SLA
between SSI and ROHQ
departments
46
To-Be: Cancellation of Payment
a. General Cancellation of Checks
b. Cancellation due to Stale Checks
47
To-Be: Cancellation of Check
Usual cases: Wrong Name/Tax
Requestor
Department Head
Fill-up/Edit Check Voiding
Replacement Form
Review Check Voiding
Replacement Form
A/P Supervisor
Review Check Voiding
Replacement Form
Check Voiding
Replacement Form
Approve?
No
SSI- A/P Staff
Forward to ROHQ for
Payment Processing
Yes
Yes
Check Voiding
Replacement Form
Approve?
No
Comment on form.
Return for editing
Comment on form.
Return for editing
FM and CFO
SSI- A/P Staff
Approves?
Yes
Forward RFP to FM and
CFO
Check Voiding
Replacement Form
No
Comment on form
details for revision.
48
To-Be: Cancellation of Check
For Stale Checks
A/P Supervisor
A/P Staff
Fill-up/Edit Check Voiding
Replacement Form
Review Check Voiding
Replacement Form
Check Voiding
Replacement Form
Comment on form.
Return for editing
Forward RFP to
FM and CFO
Forward to
ROHQ for
Payment
Processing
No
Approve?
Yes
FM and CFO
Yes
Approves?
No
Comment on form
details for revision.
Check Voiding
Replacement Form
49
Sample: Check Voiding/Replacement Form
50
The End
51