Analyze Spending Chain Procedures (SPS-PR) U.S. ARMY SOLDIER SUPPORT INSTITUTE NONCOMMISSIONED OFFICER ACADEMY 1

Terminal Learning Objective Action: Analyze Spending Chain Procedures Conditions: Mid-grade FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, practical exercise, personal experience, handouts, and discussion with an awareness of the Operational Environment (OE) variables and actors. Standard: With a minimum of 80% accuracy, learners must demonstrate proficiency with: Communicate spending chain procedures Create a standard procurement system – purchase requisition Change standard procurement system Create good receipt in GFEBS Create an invoice receipt in GFEBS 2

Spending Chain Procedures What is Spending Chain? Spending Chain involves the end-to-end Requisition to Pay process that includes: Managing and applying material and Vendor Master Data. Generating and maintaining purchase requisitions (PRs) and purchase orders (POs). Receiving and posting goods receipts (GRs). Goods acceptance Service Entry Sheets Invoicing Payment processing 3

Spending Chain Roles Purchase Requisition (PR’s) Purchase Order PO’s) Good’s Receipt (GR) Invoice Receipt (IR) PR Processor PO Processor GR Processor IR Processor PR Interface Processing Monitor PO Interface Processing Monitor GR Interface Processing Monitor IR Interface Processing Monitor PR Approver (L1) Site Invoice Processor PR Funds Certifier (L4) MIPR (L5) Site Invoice Interface Processing Monitor 4 **Data verified by: Role-to-Course Master Mapping, Effective 29 June 2014

SC Sub-Processes Material Master Data Vendor Master Data Acquisitions Accounts Payable 5

Acquisitions Includes all the steps necessary to purchase goods and services. Create/Change Purchase Requisition (PR) Purchase Requisition Approval Create/Change Purchase Order Carry Out Goods Receipt Create/Change Funds Commitment Document Create/Change Funds Pre-Commitment Document In addition it includes recording proprietary and budgetary ledger entries for: Commitments (PRs) Obligations (POs/Funds Commitment documents) Receiving Reports and Acceptances (GR/acceptance) Show Slide #6 : Acquisitions 6

Accounts Payable Process During this process, contractual and miscellaneous payment invoices and payments are processed. The activities associated with this sub-process are: Post Invoice Process payments for automatic and manual (MIRO) invoices. Payment Program Process payments for open invoices to vendors. After an invoice is received, recorded, and matched, payments are scheduled and disbursed to the vendors according to the Prompt Payment Act. 7

Contract (Document) Types Standard Procurement System (SPS) T-Codes PPA Contractual T-Codes Non-PPA Misc. Pay T-Codes ME51N ME21N (Auto-Created) MIGO MIRO ME51N – Create Purchase Requisition ME21N – Create a Purchase Order ML81N – Services Entry Sheet MIRO - Invoice/Block ME5A – PR list Display FB02- Block ME23N – View Status FB02- Unblock MIR4 – View/Display MR8M – Cancel/Reverse Invoice F-44- Clear Vendor Invoice FMY1 – Pre-Commit Document FMZ1 – Create Funds Commitment Document FB60 – Enter Invoice FB03 – View Invoice FB02 – File Attach FB02 – Invoice Block 8

Types of Invoices Two types of Invoices: Contractual consist of two key transactions MIRO and MIR4 Miscellaneous Pay Miscellaneous Pay (subject to PPA) Miscellaneous Pay (Not subject to PPA) Two ways invoices are processed: Interfaced (Automated) invoices external to GFEBS primarily with IRAPTS (Formally known as Wide Area Work Flow) Manual invoices are entered manually. 9

LSA #1 Check on Learning What are the two types of Miscellaneous Pay Invoices? A. When referencing invoices, the MIRO is to SPS, as the ________ is to Miscellaneous pay 10

LSA #1 Summary 11

Spending Chain Process LSA #2: Create a Standard Procurement System (SPS) Purchase Requisition (PR) in GFEBS ME51N 12

Commercial Off The Shelf (COTS): GFEBS Bike (Analogy) ADS/DDS SAP-Systems Applications & Products PR-(IE., Gravel) DA 3953 SF44 F11O ME51N MIRO MANUAL GFEBS L1-Gen.Supv L2-IT L3- PB L4- Certification INVOICE iRAPT /Manual MIGO MANUAL ME23N GR iRAPT /Manual GFEBS Reports AWARD PO/Obligation auto-created in SPS at the MICC T-Codes: ME51N-Create PR ME52N-Change PR ME53N-Display PR SPS Commercial Off The Shelf (COTS): SAP Accounting Software Blueprinting: Adds customer add-ons and customization of the product “The ARMY is the customer” 13

Battle Drill 1: Process Contract (P2P) with SPS & WAWF 3-way match 14

Battle Drill 1: Process Contract (P2P) with SPS & WAWF 15

ME51N – Create Standard Procurement System- Purchase Requisition (SPS PR) Simulation The instructor demonstrates this activity while you follow along Hands on Exercise The instructor will lead you step by step through the activity using the training materials provided 16

LSA #2 Check on Learning Q. What does the Plant field indicate? Ordering MICC Botany None of the above Q. What is the minimum approval levels are required for an SPS PR? A. Q. What is the account assignment category for an unfunded SPS PR? Ordering Installation 17

LSA #2 Summary 18

Battle Drill 1: Process Contract (P2P) with SPS & WAWF 19

ME53N – View / Change SPS PR (Add Funding – Certify) Simulation The instructor demonstrates this activity while you follow along Hands on Exercise The instructor will lead you step by step through the activity using the training materials provided 20

LSA #3 Check on Learning Q. T/F Changes can be made in ‘Display’ mode Q. In order to change the PR status from Unfunded to Funded, the processor must change the code from a ___ to a ___ 21

LSA #3 Summary 22

Battle Drill 1: Process Contract (P2P) with SPS & WAWF 23

MIGO – Create a Goods Receipt in GFEBS Simulation The instructor demonstrates this activity while you follow along Hands on Exercise The instructor will lead you step by step through the activity using the training materials provided 24

LSA #4 Check on Learning What must exist within GFEBS in order to enter a GR? Q. What are the three most common GR movement types? Q. What DD form does the MIGO transaction replace? A. A. A. 25

LSA #4 Summary 26

Battle Drill 1: Process Contract (P2P) with SPS & WAWF 27

MIRO – Create an Invoice Receipt in GFEBS Simulation The instructor demonstrates this activity while you follow along Hands on Exercise The instructor will lead you step by step through the activity using the training materials provided 28

LSA #5 Check on Learning What is another name for the ‘Reference’ Number as per this transaction? A. T/F: The “Amount” field is mandatory? The MIRO is the T-code in the three way match. 29

LSA #5 Summary 30

Battle Drill 1: Process Contract (P2P) with SPS & WAWF Complete SPS PR 31

Miscellaneous Pay Non-PPA Contract Types Standard Procurement System (SPS) T-Codes Miscellaneous Pay PPA T-Codes Miscellaneous Pay Non-PPA T-Codes ME51N ME21N (Auto-Created) MIGO MIRO ME51N – Create Purchase Requisition ME21N – Create a Purchase Order ML81N – Services Entry Sheet MIRO- Create IR ME5A – PR list Display FB02 - Invoice/Block ME23N – View Status FB02- Unblock IR MIR4 – View/Display MR8M – Cancel/Reverse Invoice F-44- Clear vendor Header FMY1 – Pre-Commit Document FMZ1 – Create Funds Commitment Document FB60 – Enter Invoice FB03 – View Invoice FB02 – File Attach FB02 – Invoice Block 32

TLO Summary Action: Analyze Spending Chain Procedures Conditions: Mid-grade FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, practical exercise, personal experience, handouts, and discussion with an awareness of the Operational Environment (OE) variables and actors. Standard: With a minimum of 80% accuracy, learners must demonstrate proficiency with: Communicate spending chain procedures Create a standard procurement system – purchase requisition Change standard procurement system Create good receipt in GFEBS Create an invoice receipt in GFEBS 33