Elkay Manufacturing Company Accounts Payable Data Entry

Who are We? Market leader in stainless steel sinks, faucets, water coolers/drinking fountains, kitchen cabinets Medium size manufacturing company with approximately 3500 employees Privately held, started in 1921 Live on Peoplesoft, all modules 8/99 Currently on PS V8.42, Oracle database Upgrading 2007 PS V ??

Methods of Data Entry Manual Entry – PO and non-PO related Recurring Vouchers – contractual obligations such as rentals, leases Interfaces – commissions, freight, and warranty systems EDI transactions

Manual Entry Purchase Order (PO) Related – 3-way and occasionally 2-way Match Process (used for progressive payments and drop shipments) Non-Purchase Order (PO) Related – require proper level of authorization and account coding. Some examples include: Training, Services, Marketing, Business Expense Reports, Taxes, Staffing entities, Procard

Recurring Vouchers Purchasing sends contracts to AP and we set them up for length of contract. It is the responsibility of Purchaser to notify AP if for any reason there is a termination or change. AP maintains copies of the contracts

Interfaces into Vouchers Commissions – comes from Order Management PS system monthly (2005=2000 vouchers) Freight – outside system TCS is performed weekly (2005 = vouchers) Warranty – comes from PS and is handled by the Service Center Department weekly (2005 = 16,000) Recap – Manual entry savings of 87,000vouchers

E(Electronic) D(Data) I(Interchange) Suppliers are identified by Purchasing based on number of transactions as well as dollars. Excellent negotiation tool for Purchasing as related to terms. They can sell based on less manual intervention which results in less errors, speed and efficiences. Big focus area for 2006 and beyond as well as ACH

High Points for EDI Pre-requisites for approaching vendor for EDI transactions # of transactions annually $ volume annually Efficiencies for implementing- cost savings for all Parties involved Purchasing, EDI-analyst, AP Vendor’s IT and business support team Set-up Time Required

High Points for EDI Transaction types 850 (Purchase Order) elapsed days 855 (PO Acknowledgment) elapsed days 810 (Invoice) elapsed days 856 (Advance Ship Notice) elapsed days 820 (Remit Advice) elapsed days

Additional Notes Issue payments via check and ACH Only pay in USD via check All others currency is done via wire transfers and recorded in AP vouchering system and tied as manual payments PO’s can be entered in foreign currency but if payment is made via check, system automatically converts to USD at payment creation Total vouchers entered 2005 = 131,000; therefore 66% of total vouchers entered were entered via interfaces Newly formed Procure-to-Pay Group – increase collaboration

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