Procure to Pay (P2P) Barbara Moser - Purchasing Joanne Webb - Accounts Payable Welcome

P 2 P 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 P 2 P process 3

Procure to Pay P2P Business process covering 4 Requisitioning Purchasing Invoice Entry ReceivingPayment

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 Purchasing Department 5

eProcurementAn electronic ordering system - TUmarketplace Showcase Catalog VendorElectronic “static" catalog in TUmarketplace Punchout Catalog VendorTUmarketplace 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 TPcardTemple issued credit card for small dollar transactions Vendor/SupplierContribute goods or services in a supply chain ContractLegally-enforceable promise made by one party to another Terms and ConditionsSet the rights and obligations of contracting parties EncumbranceAnticipates a future expenditure and is recorded by a PO Purchasing Key Terms - 6

7 Purchasing Process Requisition Workflow Approval Req. routes to Purchasing Select Supplier Award Bid Set Terms and Conditions Send Purchase Order

8  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 Initial request to make a purchase Requisition

9 Workflow Approval Process Enters Purchasing Different Rules at Same Level require more than one approval at that level

10 Legal document authorizing use of university funds Purchase Order $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

Less than $5,000  Competitive Bid Not Required  Only non-catalog requisitions route to purchasing for review and PO  Showcased & Punchout catalog orders do not route to purchasing for review or PO $5,000 and greater  Competitive Bid Required May require a Sole Source Form if not bid  Both catalog and non-catalog requisitions route to purchasing  Purchase Order Required Purchasing Purchasing General Requirements

TUmarketplace Access TUportal Administrative System Access 12

13 TUmarketplace “Landing Page TUmarketplace “Landing Page”

14 SHOWCASE Catalog PUNCHOUT Catalog TUmarketplace Catalogs

15 TUmarketplace TPcard Enabled Vendors

Temple Pcard (TPcard) ~Purchasing Card~ Non-Allowable Travel Food Gifts and Gift Cards Personal Contributions, Donations, or Sponsorships Computer s Allowable UPS Conference Registrations Memberships to Professional Organizations Books Non-hazardous lab supplies 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 Reduces paper 16 Please Refer to Purchasing Dept. Website for Complete List Sample List

Forms 17 Purchasing Not processed in Purchasing Police/Security Services Main OFM Work Order Creative Services Surplus Work Order HSC OFM Work Order Internal Photography Diamond Dollars Contract Approval Automated Clearing House (ACH) Deposit Authorization Accounts Payable Online Invoice Payment Vendor Quote Development Communications Might be processed In Purchasing

 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 Contract Approval Form Process 18  Supporting documents are sent to vendor by your department

Independent Contractor Forms 19 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

 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 Sole Source Form 20

T I M E Requisition Approval Generate PO Labor Order Received Pick/Pack Material & Labor Ship Delivery Invoice Receive and Accept Product Pay Invoice Labor 21 FY13 6,685 TUmarketplace POs under $ Orders less than $10.00 FY144,160 TUmarketplace POs under $50.00 Small Dollar, Small Package, Big Truck Small Dollar, Small Package, Big Truck COSTCOST

22 $ 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 Order Consolidation – Making Cent $

Upcoming Enhancements 23 March 30th TUmarketplace Upgrade New features to be announced Spring 2014New TUmarketplace Vendors: AMD/DVSS ~ Medical Supplies– Punchout National Gift Card (NGC) ~ Gift Cards - Punchout

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

 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 Accounts Payable Key Terms 25

Accounts Payable Online Invoice Payment Form Should not to be used if a Pcard is available  Direct Pay (Non-PO related invoices)  Regular Purchase Order Invoices (Committed PO Invoices)  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) Types of Payment Requests Using TUmarketplace 26

Accounts Payable Online Invoice Payment Form Should not to be used if a Pcard is available 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 Payable at  Need to make a change to a purchase order, 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 Accounts Payable Frequently Asked Questions 27

Accounts Payable Online Invoice Payment Form Should not to be used if a Pcard is available 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.  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 Accounts Payable Frequently Asked Questions con’t 28

Accounts Payable Online Invoice Payment Form Should not to be used if a Pcard is available 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:  Cost Receipts are used with orders that are for services such as Independent 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 Accounts Payable Frequently Asked Questions con’t

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