89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Presented by: Ann C. Crislip & Craig A. McIntosh Rensselaer Polytechnic Institute Tuesday March 23, 2010 Completing the Procurement Cycle Electronic Settlement - E-Invoicing

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado  Background  Challenges and objectives that drove e-Invoicing  Collaboration of vendors and clients  e-Invoicing development  Review functionality  Review key controls  Benefits of e-invoicing  Review of technology  Demonstration of life before and after e-Invoicing Agenda

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado  Banner since 1992  A/P is centralized  A/P -- Finance Division 2 staff members and 1 manager 43,000 total invoices annually Average 154/day 9,000 invoices against PO’s annually Average 25/day Background

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado E-Procurement Implementation  2000 Selected SciQuest/Higher Markets Modules: – Spend Director (private shopping environment) – Requisition Manager – Order Manager – Settlement Manager  2001 Phase 1 Rollout – Spend Director – Punch-out catalogs for key spend areas  2005 Phase 2 Rollout – Non-Catalog Requisitions – Integration with ERP financial system  2009 Phase 3 Rollout – Settlement Manager

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Challenges  Manual Process  Delays in processing receiving  Delays in payments to vendors  Working in 2 Systems - Banner and SciQuest PO in SciQuest – Invoice in Banner  Inability for campus to review actual invoice  3-Way Matching in Banner  Duplicate Data Entry for Receiving We needed a sophisticated solution!

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Objectives Change The Process ! ! !  Provide better information to campus Put the invoice in the hands of the campus purchaser Provide on-line source document – invoice  Reduce the number of steps involved in making payments  Eliminate duplicate effort  Maintain key controls How were we going to accomplish our objectives?

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Collaboration The E-Invoicing Solution Was Born

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado How Did We Get Here? Envisioning of Solution In 2007 discussions began between SciQuest, SunGard and customers about integrating invoices In January 2008 the integration approach and scope was finalized 4 Pilot customers by March 2008 Design Complete – August 2008 Customers Live February 2009 – Virginia Polytechnic Institute April 2009 – Rensselaer Polytechnic Institute June 2009 – East Tennessee State University November 2009 – Texas Tech University In Process Projects UNC System East Carolina University Miami University University of Illinois Continue to evaluate improvement opportunities Pilot Project Deployment to Customers

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Flexibility

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Process Rensselaer Method Campus Enters into SciQuest using Settlement Manager Invoice comes in mail to campus or via A/P Opens Invoice in SciQuest A/P Opens Invoice in Banner Assigned Banner Document Number Dual Monitors on the A/P desks

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado A/P Verification SciQuest Banner Banner Document # Open Attachment – Invoice – for Verification

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado A/P Folders  You can determine folders that work for your business processes.  Urgent Invoices  Non-Urgent Invoices  Exceptions  Invoice Sent to Purchasing Agent  Invoice Returned from Purchasing Agent

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado  Fields that Rensselaer has chosen to hide so campus users cannot change them The FOAPAL Addresses Payment Due Date  Supplier Invoice Numbers cannot be duplicated  Urgent, Partial, Final indicator  Invoices are fed from SciQuest into Banner. An invoice submitted is subject to all Banner business rules and edits as though the invoice had been entered directly into Banner Key Controls

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Key Controls (continued)  The invoice is created in Banner as INCOMPLETE  A/P has to verify, make necessary changes and then complete the invoice in Banner  A/P then APPROVES the invoice in SciQuest  If the invoice fails any Banner business rules the invoice will not be created in Banner and an error message is sent to designated central office personnel

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado  A/P has the ability to correct an invoice or ‘reject’ with a comment Requisition routes back to the originator Invoice amount credits back to the original PO  If A/P corrects the invoice it re-queues the document for submission to Banner  The originator will receive an with a link directly to the invoice Invoice Exceptions

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Process Virginia Tech and Texas Tech Method Feeds into Banner Invoice electronically transmitted directly from vendor

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado  East Tennessee State University A/P processes invoices in SciQuest Campus completes receiving 3-way match in Banner Accepting cXML invoices electronically from 3 vendors  A combination of RPI, Virginia Tech and Texas Tech’s methods Process

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Managing Dates  In Banner there are 3 required dates to process an invoice Invoice Date Payment Due Date Transaction Date

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Configuration SciQuest Has Three Configuration Options 1) If any of the dates are missing the invoice will not be sent to Banner and it will reject 2) If any of the dates are missing the system will insert the system date and send to Banner 3) If there is an invoice date and transaction date but payment due date is missing then the logic to derive the payment due date from the Banner vendor master payment terms will be applied

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Pros for Rensselaer – Receiving eliminated – The 3-way match was eliminated – The invoice in SciQuest is fed into Banner in real-time – Invoices will be visible to campus and purchasing – Eliminates campus guesswork – Reduced processing time – Eliminates A/P filing and document management – Eliminates lost invoices – Faster document retrieval for audits and other requests – Invoice history in SciQuest provides good information to campus – History provides workflow data such as who and when an invoice was submitted – Overall reduction in paperwork Cons for Rensselaer – Campus may not have equipment to scan invoices Pros and Cons

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Eliminate receiving Automate the PO invoicing process Reduce processing time Reduce settlement errors Reduce the cost of payables processing Enhance critical controls Eliminate the need to work in two systems Electronic invoice filing What Can It Do For You?

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Non-PO Invoices are entered by campus into SciQuest and A/P manually enters them into Banner Next phase is to work with SciQuest and SunGard to build the interface for Non-PO Invoices Non-PO Invoices

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Technology Considerations Hardware and software components to support messaging Between systems Sungard – Integration for e-Procurement (formally known as LDI) v (now v ) – Web Services – e-Invoicing v (now v8.3) – Finance v 7.3 (now v8.3) – General v 7.4 (now v8.2) SciQuest – Invoice Adapter Rensselaer – SSL Certificate Inserting technology into the process helps ensure compliance with internal controls – Custom Workflows – Approvals

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Standard adapters for Banner Finance co-developed by SciQuest and SunGard Standard Integrations: Integration for e-Procurement – Single Sign-On: Luminus or LDAP – Budget Authorization – Purchase Order – Synchronizations: Supplier, FOAPAL, Commodity, Address Invoice adapter and web services Hardware and middleware software installed at customer site SciQuest for Banner Finance Banner Finance SciQuest Integration For eProcurement Invoice Web Services Invoice Adapter

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Banner SciQuest Login Via Single Sign-On Create Req. EH&S Approvals Financial Approvals POPymt Hosted Catalogs Punchout Catalogs Create & Transmit to Supplier Custom Approvals Create PO Encumber Funds PO & Inv (2 Way Match) Budget Check Invoices Flip to eInvoice or Enter Inv. Invoice PO & Inv (2 Way Match) LDI or Web Service Synchonizations: FOAPAL, Ship-to, Vendor, Commodity Adapter Banner Web Service LDI API LDI Check API Requisition – PO – Invoice Flow - RPI

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Summary

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Ann C. Crislip Craig A. McIntosh Rensselaer Polytechnic Institute Thank You!