Procure to Pay Reports April 2017 Cindi Stinebaugh

Course Content Objectives Resources Procure-to-Pay Postings Document Flow of PO’s on Reports ME23N Display Purchase Order T-code in SAP Ariba Reports - Invoice Reconciliation Report, IRE Approval Only Report SAP Reports - Open PO Report, Blocked Invoice Report, GR/IR Clearing Report, Open Commitments, Vendor Invoice Report

Course Objectives Upon completion of this course you will: Understand where to find resources on procure to pay reports Understand how purchase orders flow through the FM ledger Understand the procure to pay reports and how to work them

Resources Business@Purdue — Purchasing page Process Documents QRC’s Training documents Purchase Order Commitments – All Postings Business Manager Task Checklist (Procurement Tab) Procure-to-Pay Helpdesk or by phone 765-49-47279

Procure to Pay Postings Postings document

Flow of PO’s on Reports ***Invoices will only appear on reports if an exception is raised. If the invoice is less than, equal to or within the tolerance of the PO quantity and price; and has been received in Ariba prior to the invoice posting, the invoice will pass to SAP without an exception being raised. Reports in Ariba – these reports need to be cleared before the invoice will pass to SAP Invoice Reconciliation Report – Exception in Reconciling status Exceptions need to be reconciled on this report once the exception is reconciled the invoice reconciliation document will move to approving status Review report to catch any exceptions that may have been referred/deferred in error No exceptions should ever be referred/deferred Also, there could be exception assigned to someone who has left the department. NOTE: These reports are run centrally every week and posted on the Procure-to-Pay SharePoint site.

Flow of PO’s on Reports ***Invoices will only appear on reports if an exception is raised. If the invoice is less than, equal to or within the tolerance of the PO quantity and price; and has been received in Ariba prior to the invoice posting, the invoice will pass to SAP without an exception being raised. IRE Approval Only Report – Exceptions in Approving status Exceptions need to be approved before they will move to paying status and transfer to SAP to pay the supplier Invoice Reconcilers approve the PO Received Quantity exception (the receiving exception) Fiscal Approvers approve any fiscal exception such as PO Price, PO Quantity, Shipping, Special Handling, PO Received Line Amount NOTE: These reports are run centrally every week and posted on the Procure-to-Pay SharePoint site.

Flow of PO’s on Reports Open PO – PO appears here first until it is fully received in SAP or canceled Blocked Invoice – if an invoice is blocked for any reason in SAP (e.g. receipt not posted in SAP or the invoice is Out of Tolerance for quantity or price) NOTE: These reports are run centrally every week and posted on the Procure-to-Pay SharePoint site.

Flow of PO’s on Reports GR/IR Clearing – A PO will appear on the GR/IR if the quantity for the GR (Goods receipt) does not match the quantity for the IR (Invoice receipt). A Goods Receipt and No Invoice Receipt An Invoice Receipt and No Goods Receipt NOTE: The dollar amount does not cause a PO to appear on the GR/IR, only quantity Vendor Invoice Report – Open Invoices, In relationship to PO’s this report should be checked prior to closing any accounts. If a PO is has an open invoice the account should not be closed until the payment is completed or the payment will be stopped from being sent to the supplier NOTE: These reports are run centrally every week and posted on the Procure-to-Pay SharePoint site.

Invoice Reconciliation Report Invoice Reconciliation Report – Exception in Reconciling status Review report to catch any exceptions that may have been referred/deferred in error No exceptions should ever be referred/deferred Also, there could be exception assigned to someone who has left the department. Contact the Procure-to-Pay Helpdesk if this has happened, to have the exceptions re-assigned Invoice Reconciliation Exceptions in Ariba - Invoice Reconcilers QRC for detailed instructions for Invoice Reconcilers

IRE Approval Only Report IRE Approval Only Report – Exceptions in Approving status Invoice Reconcilers approve the PO Received Quantity exception (the receiving exception) this is roughly 75-80% of the lines Fiscal Approvers approve any fiscal exception such as PO Price, PO Quantity, Shipping, Special Handling, PO Received Line Amount Invoice Reconciliation Exceptions – Fiscal Approver QRC for detailed instructions for Fiscal Approvers

ME23N- Display Purchase Order Purchase Order History Tab Displays any GR (Goods receipts) and IR’s (Invoice Receipts) per line transferred to SAP from Ariba Account Assignment Tab Displays the account information for the PO Commitments for this PO In the top menu, Click Environment and then AC Commitment Documents

ME23N- Display Purchase Order

Open PO Report This report will display all purchase orders (by line item) that have not been fully received or canceled in SAP If a receipt fails to pass to SAP from Ariba, the PO will still show on this report. Contact the Procure-to-Pay Helpdesk if a receipt has been processed/approved in Ariba, but has not transferred to SAP NOTE: There is a slight delay in manually posting failed receipts by Procurement Services staff. Look for the reply comment to the failure message in Ariba once the receipt has been manually processed Exception: Fisher Scientific Storeroom PO’s are a 2-Way Match and no receipt is created/processed in Ariba. (There is about 8 months in 2016 Feb- Oct for the supplier EAC). Two-Way match PO’s are only found on the All Postings Report. T-code ME23N, Display Purchase Orders which is where users can see details for the PO’s found on this report

Open PO Report T-code: ZFIR_SRM_OPEN_PO_SUM This report is also available in the portal under Financial Systems>Reports>AP> Open Purchase Order Summary Report should be reviewed on a regular basis by Business Office and if necessary the Receiver to follow up if PO should be canceled or items were physically received and then process the receipt in Ariba

Open PO Report NOTE: This report is ran centrally every week and posted on the Procure-to-Pay SharePoint site.

Open PO Report

Open PO Report Review list for your area (college, dept., cost center) Ariba Receivers should process the receipt in Ariba, for those PO’s that items were physically received in acceptable condition and payment should be made If a PO should be canceled, the Ariba Receiver should follow the cancel instructions in the Receiving in Ariba QRC, The receiver will need to pay attention if a receipt has been processed and needs to be reversed DO NOT process the receipt in Ariba for any PO’s that have NOT been physically received

Open PO Report Benefits of keeping up with this report will remove/stop these PO’s from creating a receiving invoice reconciliation exception and showing up on the blocked invoice list unless they are out of tolerance for quantity or price will help keep outstanding commitments under control Timely movement from commitment to expense allows appropriate overhead to follow If a delivery date needs to be updated: Send the PO #, line # or #’s and the new delivery date to pshelpdesk@purdue.edu. Internal note: Cindi, Yolanda, Janessa can update the delivery date on the lines in SAP. Either MM200 or mm205 role gives the permission to do this.

Blocked Invoice Report Invoices will be blocked for payment for one (or more) of three reasons on a line item basis: Price is out of tolerance Quantity is out of tolerance Goods receipt not posted in SAP ZFI_BLOCKED_INVOICE Procurement Services staff review this report weekly and will contact departments, if assistance is needed. No going to spend much time on this report because departments do not need to worry about it unless Procurement contacts them.

Blocked Invoice Report NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.

Blocked Invoice Report

GR/IR Clearing Report Purchase Orders will appear, by line item, on the GR/IR Clearing report when the quantity of the GR does not match the quantity of the IR If no receipt or no invoice that equates to quantity zero T-code: ZFI_GR_IR_CLEARING GR/IR=Goods Receipt/Invoice Receipt If items are in the GR/IR account, there could be an impact positive or negative on your financial statements

GR/IR Clearing Reports NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.

GR/IR Clearing Reports

GR/IR Clearing Report Should be reviewed by Business Office and Receiver if necessary Review outstanding entries (return delivery needed, quantity issue, goods receipt needed, blocked invoice, other issue, credit memo needed and invoice needed (verify items were physically received – If not received, may have auto-receipted and need to be reversed.) Use ME23N to see what has happened in SAP (double click on PO #) verify activity in Ariba receipts and invoices tabs Compare against Open PO & Blocked Invoice notes

GR/IR Clearing Report Action = Return Delivery Needed Scenario 1 PO Qty= 1 Net Goods Receipt Qty=1 Net Invoice Receipt Qty=0 If item was returned to vendor, and no replacement being provided, Ariba receiver should process: a reversal receipt (negative in accepted field) and note the return (positive in rejected field) in Ariba Receiving in Ariba QRC

GR/IR Clearing Report Action=Invoice Receipt (IR) Needed Scenario 2 PO Qty=3 Net Goods Receipt Qty=3 No Invoice Receipt Determine actual quantity physically received. If no goods actually received, then process reversal receipt in Ariba Receiving in Ariba QRC If Goods Receipt Qty=3 is accurate, then contact vendor for invoice for Qty=3

GR/IR Clearing Report Action=Goods Receipt (GR) Needed Scenario 3 PO Qty=1 No Goods Receipt Net Invoice Receipt Qty=1 This scenario should not happen very often and if it does Procurement Services should be working on posting the failed receipt in SAP.

GR/IR Clearing Report Action=Quantity Issue Scenario 4 PO Qty=5 Net Goods Receipt Qty=5 Net Invoice Receipt Qty=3 Verify quantity actually received If GR is correct, contact vendor for remaining invoice receipt qty of 2. If GR is incorrect, process reversal for the difference Receiving in Ariba QRC

GR/IR Clearing Report Action=Quantity Issue Scenario 5 PO Qty= 4 Net Goods Receipt Qty=2 Net Invoice Receipt Qty=4 If GR is correct, contact vendor for credit memo or the additional items If GR is incorrect and the other 2 items were physically received, the Ariba receiver should process an additional receipt for 2 in Ariba

GR/IR Clearing Report Action= Quantity Issue Scenario 6 PO Qty=3 Net Goods Receipt Qty=3 Net Invoice Receipt Qty=5 Accounts Payable staff will clear these based on the approval of the PO Quantity exception in Ariba

GR/IR Clearing Report Action= Credit Memo Needed Scenario 7 PO Qty=3 Net Goods Receipt Qty=0 Net Invoice Receipt Qty=3 The invoice has been paid Verify the items were returned to the supplier If yes, either wait for the credit memo, if more than 2-3 weeks have past contact the supplier to request a credit memo If the items were not return to the supplier, the Ariba receiver should process the receipt again in Ariba

GR/IR Clearing Report Action= Blocked Invoice Scenario 8 PO Qty=8 Net Goods Receipt Qty=0 Net Invoice Receipt Qty=8 Procurement Services works these and will contact department if assistance is needed The invoice has not been paid

GR/IR Clearing Report Action=Other Issue Scenario 9 In most cases an account maintenance has been completed and then there is activity to bring the GR qty and IR qty back in balance Email the Procure-to-Pay Helpdesk with the PO# and GR/IR Other Issue in the email Procurement Services staff will work to clear the issue

GR/IR Clearing Report Benefits of keeping up with this report Account balances will be more accurate Prior to closing accounts especially Promotes work time efficiency Vendors will be paid in a more timely manner

Vendor Invoice Report Will show all invoices and credit memos posted to a given range of cost objects, which should make it easier for staff to determine what invoices are still aging – or open – and not yet paid out to the vendor. T-code: ZFI_VENDOR_INVOICES

Vendor Invoice Report NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.

Vendor Invoice Report

All Postings This report lists open commitments FMRP_RFFMEP1AX—(variant=COMMITMENTS) this variant is for PO’s This report should be reviewed by the Business Office Review the issues from your other lists and mark off this list so you do not review the same issues

All Postings This report will catch 2-Way Match suppliers with open commitments: Currently - Fisher Scientific Storeroom PO’s Previously - EAC Bus Rentals for 8 months in 2016 (February-October)

All Postings

All Postings

Closing Accounts These reports have been added to the Closing Accounts Checklists to avoid: unexpected expenses after account is closed ensure all commitments have been relieved as well as ensuring that vendors are paid

Questions? Review Process documents, QRC’s and Training materials on business@purdue – Purchasing page Procure-to-Pay Helpdesk or by phone 765-49-47279