Procure to Pay (P2P) Barbara Moser - Purchasing Joanne Webb - Accounts Payable Welcome P2P Business Process Workshop Agenda Procure to Pay Introduction Key Terms and Processes TUmarketplace Discussion General Requirements and Policy Review Creating a Requisition for PO, Approval, Processing, and Payment Summary After This Workshop You Should: Be familiar with the systems and processes required for purchasing Know how to get invoices paid quickly and accurately Understand your role in the P2P process 3 Procure to Pay P2P Business process covering Requisitioning 4 Purchasing Invoice Entry Receiving Payment Purchasing Department The mission of the Purchasing Department is to respond to the procurement needs of the University community efficiently and effectively by obtaining quality goods and services at competitive prices and providing responsive and responsible service to all University departments. Provide the Tools to Purchase Efficiently: • • TUmarketplace – electronic ordering system TUebid – electronic bidding system Supplier Relationship Management (SRM) • Supplier qualification review and approval • Obtain quotations • Contract negotiation and management • Conduct bidding • Award bid 5 Purchasing Key Terms eProcurement An electronic ordering system - TUmarketplace Showcase Catalog Vendor Electronic “static" catalog in TUmarketplace Punchout Catalog Vendor TUmarketplace linked to vendor’s website Requisition (PR) Initial request to make a purchase Purchase Order (PO) Legal document authorizing use of university funds Blanket Purchase Order (BPO) Used for recurring purchases – not encumbered Change Order (CO) Original conditions of order have changed TPcard Temple issued credit card for small dollar transactions Vendor/Supplier Contribute goods or services in a supply chain Contract Legally-enforceable promise made by one party to another Terms and Conditions Set the rights and obligations of contracting parties Encumbrance Anticipates a future expenditure and is recorded by a PO 6 Purchasing Process Requisition 7 Workflow Approval Select Supplier Set Terms Award Bid and Conditions Req. routes to Purchasing Send Purchase Order Requisition Initial request to make a purchase Need to purchase good or service Catalog Requisition vs Non-Catalog Requisition – can’t be mixed • Punchout Catalog – begins on vendor’s website • Hosted Catalog – begins in file catalog Shopping Cart created and assigned a name – change to unique Enter correct FOAPAL, accounting codes Attach forms, if required Place Order – enters workflow approval 8 Workflow Approval Process Enters Purchasing Different Rules at Same Level require more than one approval at that level 9 Purchase Order Legal document authorizing use of university funds $5,000 and greater Authorized before goods or service ordered Competitive Bid Required •May require a Sole Source Form if not bid Transmitted to vendor electronically 10 Purchasing General Requirements Less than $5,000 Competitive Bid Not Required $5,000 and greater Competitive Bid Required •May require a Sole Source Form if not bid Only non-catalog requisitions route to purchasing for review and PO Both catalog and non-catalog requisitions route to purchasing Showcased & Punchout catalog orders do Purchase Order Required not route to purchasing for review or PO http://www.temple.edu/controller/purchasing/policies_procedures.htm TUmarketplace Access TUportal Administrative System Access 12 TUmarketplace “Landing Page” 13 TUmarketplace Catalogs 14 TUmarketplace TPcard Enabled Vendors 15 Temple Pcard (TPcard) ~Purchasing Card~ Non-Allowable Allowable • Travel • UPS • Food • Conference Registrations • Gifts and Gift Cards • Memberships to Professional Organizations • Personal • Contributions, Donations, or Sponsorships • Computers 16 • Books Benefits • Reduces: Number of PO and invoice processing • Reduces: Use of personal funds for University business transactions & reimbursements • Faster order placement, quicker delivery • Quicker payment to vendor • Non-hazardous lab supplies • Reduces paper Please Refer to Purchasing Dept. Website for Complete List www.temple.edu/controller/purchasing/PurchCardProgPolicies-Proced.htm Forms Purchasing Not processed in Purchasing Might be processed In Purchasing Accounts Payable Online Invoice Payment Development Communications HSC OFM Work Order Creative Services Automated Clearing House (ACH) Deposit Authorization Internal Photography Surplus Work Order Contract Approval Police/Security Services Diamond Dollars Main OFM Work Order Vendor Quote 17 Contract Approval Form Process Electronic workflow approval of legal documents Will process through Purchasing if contract is greater than $5,000 and commits University funds Complete Contract Approval Request Form After workflow approval, the requisition is routed to Purchasing – if commits funds >$5,000 Purchasing reviews for proper documentation and requisition routes to University Counsel University Counsel reviews, obtains electronic signature When a Purchase Order is required the signed contract routes to Purchasing to create a PO The requisition is closed and the contract is exported to Imaging Supporting documents are sent to vendor by your department 18 Independent Contractor Forms 1) Independent Contractor Determination and Certification Independent Contractor should answer yes to all of the questions 2) Independent Contractor Service Agreement Scope of Work Total Cost 3) W-9 – I.R.S. Tax Form Under $5,000 – Agreement can be executed by department dean or vice president Over $5,000 – Agreement must be attached to a purchasing requisition with all Independent Contractor forms for review and approval by Accounts Payable 19 Sole Source Form Only One Source • Unique expertise or technology leadership • Patent protection or copyrighted materials • Original Equipment Manufacturer (OEM) • No suitable competitor Preference for one vendor does not justify sole source This is the exception rather than the rule https://prd-challenger.erp.temple.edu/employeeforms/Purchasing.htm 20 Small Dollar, Small Package, Big Truck FY13 6,685 672 TUmarketplace POs under $50.00 Orders less than $10.00 FY14 4,160 TUmarketplace POs under $50.00 T I M E C O S T 21 Requisition Approval Generate PO Labor Order Received Pick/Pack Material & Labor Ship Delivery Invoice Receive and Accept Product Pay Invoice Labor Order Consolidation – Making Cent$ $aves Time $aves Money •Conserves Resources •Promotes Environmental Sustainability •Reduces Waste •Reduces Delivery Truck Congestion •“Free Shipping” - cost of shipping can be buried in cost of product What You Can Do •Preplan Your Purchases •Anticipate Needs •Keep Stock of Items Frequently Used •Order Consumable Products Once a Week, or less, In a Larger Order 22 Upcoming Enhancements March 30th TUmarketplace Upgrade New features to be announced Spring 2014 New TUmarketplace Vendors: AMD/DVSS ~ Medical Supplies– Punchout National Gift Card (NGC) ~ Gift Cards - Punchout 23 Accounts Payable Overview Accounts Payable (AP) is the source of all vendor payment information Benefits of Electronic Invoicing: • Automation of matching receipts to purchase orders • Two Way Match • Three Way Match • Workflow - track and route documents through the approval process in TUmarketplace 24 Accounts Payable Key Terms AP– Accounts Payable ACH – Direct Deposit E-Invoicing – Electronic Data Interface T & E – Travel and Expense Reports FOAPAL – Fund, Org, Account, Program, Activity, Location NRA - Nonresident alien Receivers – Approval on invoice or entered in TUmarketplace W-9 – IRS Requirement JE – Journal Entry TPCard – Temple University’s Purchasing Card PO – Purchase Order Req. – Requisition Net 1,15, 30 – When the invoice is released for payment based off the invoice date 25 Types of Payment Requests Using TUmarketplace Direct Pay (Non-PO related invoices) Regular Purchase Order Invoices (Committed PO Invoices) Accounts Payable Online Invoice Payment Form Should not to be used if a Pcard is available Blanket Purchase Order Invoices (Not committed to budget) Independent Contractors (PO and Non-PO) Credit Invoices Travel and Expense Reports (Concur Travel and Expense System) 26 Accounts Payable Frequently Asked Questions How do I know whether I should call Accounts Payable or Purchasing with a question? Check status of purchase orders or payments on an invoice/check request by using Self Service Banner or contact Accounts Accounts Payable Online Invoice Payment Form Payable at ap@temple.edu be usedorder, if a Pcard is available Need to make aShould changenot to atopurchase contact Purchasing Questions regarding PCard, contact Purchasing Questions regarding contract specifics, contact Purchasing How do I know if a person is an Independent Contractor or an Employee, contact Accounts Payable 27 Accounts Payable Frequently Asked Questions con’t How do I know if a person is an Independent Contractor or an Employee? Employee: Temple controls what work will be done and how it will be done. Temple has the right to control and manage the details of how and when the work is performed. Accounts Payable Online Invoice Payment Form Should not to be used if a Pcard is available Independent Contractor: Individual specializes in a field, ex: landscaper, consultant, etc. Contractor decides how the work will be done, not Temple Typically set their own hours and are paid on a free-lance basis, either a flat rate or per job rate 28 Accounts Payable Frequently Asked Questions con’t How do I enter a receipt in TUmarketplace? Quantity Receipt: Quantity receipts are used for products regardless of how many items are purchased Cost Receipt: Accounts Payable Online Invoice Payment Form Cost Receipts are used with that ifare for services such as Independent Should notorders to be used a Pcard is available Contractors, Maintenance Agreements, Software installation and any other service related orders Here is the link which is located in the Unified Resource Center. Go to TUportal, right hand corner click on the help. Here is where you will find all the material to walk you through a lot of your questions. https://tuportal3.temple.edu/apps/global/help/resources/TUM/Settlement_Manager_Instructions.pdf 29 30 31 32