1. PROCURE TO PAY REPORTS April 2016 Cindi Stinebaugh

2. 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

3. 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

4. RESOURCES Business@Purdue — Ariba pageAriba page –Purchase Order Commitments – All Postings –QRC’s Business Manager Task Checklist Business Manager Task Checklist (Procurement Tab) Procure-to-Pay HelpdeskProcure-to-Pay Helpdesk or by phone 765-49-47279

5. PROCURE TO PAY POSTINGS http://www.purdue.edu/procurement/xls/4POScenarios.xls

6. 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 in error –No exceptions should ever be referred –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.Procure-to-Pay SharePoint site

7. 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.Procure-to-Pay SharePoint site

8. FLOW OF PO’S ON REPORTS Open PO – PO appears here first until it is fully received in SAP 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.Procure-to-Pay SharePoint site

9. 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). 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.Procure-to-Pay SharePoint site

10. INVOICE RECONCILIATION REPORT Invoice Reconciliation Report – Exception in Reconciling status Review report to catch any exceptions that may have been referred in error –No exceptions should ever be referred –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 ReconcilersInvoice Reconciliation Exceptions in Ariba - Invoice Reconcilers QRC

11. 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 ApproversInvoice Reconciliation Exceptions – Fiscal Approver QRC

12. 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

13. ME23N- DISPLAY PURCHASE ORDER

14. OPEN PO REPORT This report will display all purchase orders (by line item) that have not been fully received in SAP o 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 SAPProcure-to-Pay Helpdesk NOTE: There is a slight delay in manually posting failed receipts by Procurement Services staff. Look for the reply comment to the failure message 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 a month in March 2016 for the supplier EAC. T-code ME23N, Display Purchase Orders which is where users can see details for the PO’s found on this report

15. 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

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

17. OPEN PO REPORT

18. Review list for your area Ariba Receivers should process the receipt in Ariba, for those PO’s that items were 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 Receiving in Ariba QRC DO NOT process the receipt in Ariba for any PO’s that have NOT been physically received

19. OPEN PO REPORT Benefits of keeping up with this report o 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 o will help keep outstanding commitments under control o Timely movement from commitment to expense allows appropriate overhead to follow

20. 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 o Procurement Services staff review this report weekly and will contact departments, if assistance is needed.

21. BLOCKED INVOICE REPORT NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.Procure-to-Pay SharePoint site

22. BLOCKED INVOICE REPORT

23. 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

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

25. GR/IR CLEARING REPORTS

26. GR/IR CLEARING REPORT Should be reviewed by Business Office and Receiver if necessary Review outstanding entries (oldest first, return delivery needed, quantity issue, goods receipt needed, blocked invoice, other issue, credit memo needed and invoice needed) Use ME23N to see what has happened (double click on PO #) Compare against Open PO & Blocked Invoice notes

27. 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 in Ariba Receiving in Ariba QRC

28. 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

29. 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.

30. 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

31. 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 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

32. 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

33. 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 not, the Ariba receiver should process the receipt again in Ariba

34. GR/IR CLEARING REPORT Action= Blocked Invoice Scenario 8 –PO Qty=8 –Net Goods Receipt Qty=0 –Net Invoice Receipt Qty=8 The invoice has not 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 not, the Ariba receiver should process the receipt again in Ariba

35. 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

36. GR/IR CLEARING REPORT Benefits of keeping up with this report o Account balances will be accurate o Promotes work time efficiency o Vendors will be paid in a more timely manner

37. 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

38. VENDOR INVOICE REPORT NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.Procure-to-Pay SharePoint site

39. VENDOR INVOICE REPORT

40. 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 o Review the issues from your other lists and mark off this list so you do not review the same issues

41. ALL POSTINGS This report will catch 2-Way Match suppliers with open commitments (i.e. Fisher Scientific Storeroom PO’s currently and EAC Bus Rentals for one month in March 2016)

42. ALL POSTINGS

44. 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

45. QUESTIONS? Review Process, QRC’s and Training material on business@purdue – Ariba pageAriba page Procure-to-Pay Helpdesk or by phone 765- 49-47279Procure-to-Pay Helpdesk