Purchasing and Accounts
Payable Training
Agenda
• Procure to Pay Process Walk-Through
• Examples to Prevent Matching Issues and Premature 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
3. PO Document Tolerance
4. PO Dispatch
5. Publish Outgoing Message
to SciQuest
7 Days a Week
1. 10AM to 10:15AM
2. 1:30PM to 1:45PM
3. 4:30PM to 4:45PM
4. 7:00PM to 7:15PM
Procure to Pay Process – BATCH Processes
Accounts Payable Processes
1. AP Voucher Build
2. AP Voucher Matching
3. AP Voucher Budget Check
4. AP Voucher Doc Tolerance
5. AP Voucher Post
6. AP Payment Post
7. AP Voucher Post
7 Days a Week
- 8:00PM
- 8:05PM
- 10:00PM
- 10:30PM
- 11:00PM
- 11:30PM
- 1:00AM
Procure to Pay Process – BATCH Processes
Additional Batch Processes
1. PO Reconciliation
2. PO Budget Check
3. REQ Reconciliation
4. REQ Budget Check
7 Days a Week
- 1:15AM
- 1:30AM
- 1:45AM
- 2:00AM
Procure to Pay Process Walk Through
1.
2.
3.
4.
Requisition
Purchase Order
Receipt
Voucher
Matching: Purchasing & AP’s
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 & AP’s
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 - Cont’d
• 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 - Cont’d
• 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 – Cont’d
• Zero Dollar Lines
– Is this causing issues?
– What is the process?
– Are the requesters receiving all the lines?
Current Issues – Cont’d
• 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!