1. Statewide Financial System SFS Purchasing and Contracts Overview May 2011 Statewide Financial System (SFS)

2. Statewide Financial System 2 Agenda  Overview Objectives  Ready, Set, “Go-Live!”  Purchasing Overview  Benefits  Requisitions  Contracts  Purchasing  Procurement Card  Receiving  Resources  Training  SFS Resources

3. Statewide Financial System 3  Communicate SFS business process and organizational benefits and impacts  Business Process Flows  Provide a view of the end-to-end future state of the SFS Purchasing module  System screen shots  Identify resources to help end users understand and utilize SFS Overview Objectives

4. Statewide Financial System 4 Ready, Set, “Go-Live!”  Conversion: Reconciliation & Validation  Late May-Mid August  Inputs and Outputs will be provided to all Agencies on the SFS website.  Agencies expected to work with OSC data owners to resolve conversion defects  Training: Agency training July-November 2011  CAS Processing ends 9/30/2011  Cutover: 10/1/2011-10/15/2011  SFS “Go-Live”: 10/16/2011 Key activities that SFS users should be aware of as we move closer to Go- Live:

5. Statewide Financial System 5 Business Benefits – Purchasing and Contracts NY SFS Business Benefits – Purchasing and Contracts Improved data for buying and purchasing Standardization of purchasing process Electronic approvals of requisitions and purchase orders New standard state- wide vendor file managed by OSC Vendor Management Unit Automatic download of purchase card transaction data for review and reconciliation Better managed and controlled organizational spending Automated and simplified receiving process Key data field validation during and shortly after transaction entry

6. Statewide Financial System 6 Phase 1 Agencies Purchasing Impacts  Requisitions, Purchase Orders, and Receipts can all be viewed in one place by system users  Paperless Workflow  Requisitions, Purchase Orders, PO Changes (POC), and Vouchers will be approved through Workflow  Approver will be notified of workflow transactions through worklist  Statewide Vendor ID must be included on most purchasing transactions  Electronic Procurement Card reconciliation instead of Plot Sheets

7. Statewide Financial System 7 Phase 1 Agencies Purchasing Impacts  In SFS there is a Contract Record and encumbrances are done separately via Purchase Orders  In place of the AC340 form, Agencies will generate a single transaction summary

8. Statewide Financial System 8 Phase 1 Agencies Purchasing Impacts (cont.)  Distribution on Requisition/PO  Use Chart of Accounts for distributions on Req/PO. Values can be defaulted on Req/PO based on user preferences and item categories. Defaults can be changed on Req/PO if needed  B1184  B1184 requirements will be remain the same. Purchasing documents will include a DOB Approval ID field that will enable agencies to record their approval number on the document  Green purchases  System will have the ability to track and report green purchase

9. Statewide Financial System 9 Bulkload Agency Purchasing Impacts  Agencies will be using SFS similar to how they are using CAS today, by creating the transactions in their own financial management system and then transmitting those transactions to SFS via bulkload process  One of two layouts can be used: Legacy or PeopleSoft  There are “Direct Entry” screens available for certain transactions if an agency is unable to bulkload  Agencies bulkloading transactions into SFS will receive various extract files from SFS which will enable them to keep their system and SFS in sync

10. Statewide Financial System 10 Bulkload Agency Purchasing Impacts  Statewide Vendor ID must be included on most purchasing transactions  In SFS there is a Contract Record and encumbrances are done via Purchase Orders  Agencies will use a modified AC340 form (http://www.osc.state.ny.us/agencies/index.htm)http://www.osc.state.ny.us/agencies/index.htm  Some agencies will process transactions both online and via bulkload  All future phase agencies will have “Inquiry Access” into SFS

11. Statewide Financial System 11 Purchasing Processes Requisitions Contracts Purchase Order Procurement Card Receiving Create, Approve, Manage

12. Statewide Financial System 12 Requisitions

13. Statewide Financial System 13 Process Definition: Requisition  A requisition is an online form which users use to request goods or services. A requisition may be know to agencies today as a Purchase Requisition (PR)  A requester is a user who has the authority or security privileges within the SFS to create a requisition/request for goods and services  A proxy is a requisition user with authority to enter requisitions for another requester

14. Statewide Financial System 14 SFS Business Process Flow: Create Requisition

15. Statewide Financial System 15 SFS Business Process Flow: Approve Requisition

16. Statewide Financial System 16 Screenshots  All screenshots taken in a test environment and could be different within the production environment  All screenshots taken with super user access. Agency user views will differ

17. Statewide Financial System 17 Creating a Requisition

18. Statewide Financial System 18 Adding Items to a Requisition

19. Statewide Financial System 19 Searching for a Category

20. Statewide Financial System 20 Reviewing and Submitting a Requisition

21. Statewide Financial System 21 Inquiring on a Requisition

22. Statewide Financial System 22 Approving a Requisition

23. Statewide Financial System 23 Inquiring a Requisition 23

24. Statewide Financial System 24 Document status 24

25. Statewide Financial System 25 Requisitions Summary Summary 1Agencies can use the SFS workflow to process requests and record approvals for requisitions. 2Certain SFS ChartFields are required on Requisitions when being submitted. The Budget unit Approver can correct the coding as appropriate during the approval process. 3Agencies have the option at the business unit level to determine whether all requisitions will be pre- encumbered or not. 4Agency requester/approvers route requisitions to special approvers as needed using the ad-hoc approver capability in the SFS requisition approval workflow. 5Requesters must choose a valid item category code when entering a requisition. 6Available goods provided by preferred source vendors can be found in the item master – a limited online listing of available products for specific vendors to facilitate requisitioning. 7The SFS has a standard category code classification, United Nations Standard Products and Services Code (UNSPSC), of products and services at a lower level of detail than the account (previously object) code.

26. Statewide Financial System 26 Contracts

27. Statewide Financial System 27 Process Definition: Procurement Contracts  Used within SFS to denote an agreement to procure goods or services from a vendor  Contracts in the SFS do not have a financial impact  Purchase Orders released from the contract encumber funds and identify a specific order against the contract

28. Statewide Financial System 28 Process Definition: Procurement Contracts (cont.)  Contract ID (Number) will consist of three parts:  Agency Business Unit (5 characters): OGS01  Contract Number (up to 10 characters): C000000001  Department Code (7 characters): 1234567  Centralized Contracts are managed within the SFS.  The contract language and detail can be accessed on the website of the contract’s holding agency

29. Statewide Financial System 29 What is not Changing?  OSC encumbrance policy  Audit type (Batch Type)  Contract number prefixes  Physical contract delivered to OSC with cover sheet

30. Statewide Financial System 30 SFS Business Process Flow: Create Contract

31. Statewide Financial System 31 Creating a Purchase Order

32. Statewide Financial System 32 Contract Page

33. Statewide Financial System 33 Allowing Open Item Reference If selected, no need to put in a line on the Contract

34. Statewide Financial System 34 After Agency Approval

35. Statewide Financial System 35 Automatically Creating Amendment 0

36. Statewide Financial System 36 OSC Contract Review  OSC receives physical contract  OSC receives electronic record in SFS  OSC assigns and audits contract  OSC requests encumbrance/PO (when required)  If OSC approves  Contract header remains at “Requested PO”  Amendment status updated to “approved”  If the original contract is not approved, both the contract header and the amendment status updates to “not approved”

37. Statewide Financial System 37 OSC Approval Process  OSC will pull Contracts submitted requiring pre-audit into their auditing module known as Contract Audit Module (CAM)  Audit type determines which contracts get pulled into CAM and which contracts get systematically approved  Request for PO can occur at any time during the audit process  Approval status will be indicated on the contract amendment header in SFS and/or via extract file

38. Statewide Financial System 38 After OSC has Received the Contract, They will Request the PO

39. Statewide Financial System 39 Approving the Amendment During the contract approval process, the amendment status changes to “Requested PO” and once the contract is approved by OSC the amendment status is updated to “approved”

40. Statewide Financial System 40 Encumbrance Posted to Contract Once the PO which references this contract is successfully budget checked, then the released contract amount is automatically updated.

41. Statewide Financial System 41 Searching Amendments

42. Statewide Financial System 42 Procurement Contracts Summary Summary 1Funds are encumbered in the SFS through the purchase order, not the contract. The AC340 or the STS is required with contract submission but does not encumber funds. 2Agencies create PO releases from approved contracts. Purchase orders are used for the encumbrance and must reference contract and amendment number. 3Vouchers have to reference purchase orders, not contracts. 4The only agency submitted information that OSC will be able to update in the SFS as part of its audit is contract begin and end date. Changes, including corrections, to any other data fields will require that the contract be returned to the agency not approved. 5Agencies will submit all contracts and amendments through the Purchasing module for Audit and approval purposes. If an agency desires or is required to bill and record receivables for revenue contracts, they will be able to create a Customer Contract in the AR module with the same Contract number, without approval workflow.

43. Statewide Financial System 43 Purchase Orders

44. Statewide Financial System 44 Process Definition: Purchase Orders Purchase Order (PO):  Document that is used to encumber funds for a procurement contract or as in a standalone procurement instrument  A PO can be sourced from a requisition or created independently and always encumbers funds within SFS  A PO must reference a valid vendor in the Statewide Vendor file  Dispatch method for PO in SFS will be “file”, meaning the “buyer” who originated the PO will receive a file that can be printed if needed

45. Statewide Financial System 45 SFS Business Process Flow: Source Requisition

46. Statewide Financial System 46 SFS Business Process Flow: Approve PO

47. Statewide Financial System 47 Purchase Order

48. Statewide Financial System 48 PO Associated with Contract

49. Statewide Financial System 49 PO Associated with Contract  When associating a PO to a contract, the amendment number must be identified by clicking on the “Contract Details” link  Also, on the PO form the contract number must be populated on the contract tab

50. Statewide Financial System 50 Purchase Order Header Details 50

51. Statewide Financial System 51 Purchase Order Header Details  Agency will submit PO using electronic workflow.  PO Type will determine if routed for OSC approval.  When indicated by PO type, agencies will submit an unauthorized signed copy, to OSC, along with their procurement record for audit.  Once OSC has approved, OSC will dispatch (print) that purchase order. They will then stamp an approval on the authorized copy and mail it to the agency.

52. Statewide Financial System 52 Procurement Card on Purchase Order 52

53. Statewide Financial System 53 Schedules 53

54. Statewide Financial System 54 Distributions 54

55. Statewide Financial System 55 Purchase Order Search Page 55

56. Statewide Financial System 56 Dispatched and Received 56

57. Statewide Financial System 57 Approvals on a Purchase Order 57

58. Statewide Financial System 58 Dispatched PO 58

59. Statewide Financial System 59 Dispatched PO – Change Order 59

60. Statewide Financial System 60 Purchase Order Summary Summary 1All approvals for a purchase order are required in the SFS electronically before it can be dispatched. 2In the SFS, requisitions can be used to electronically create a purchase order. 3In the SFS, a new purchase order can be created by copying from a previously processed purchase order. 4All purchase orders in SFS require a vendor number and item in addition to a PO number and ChartField distribution.

61. Statewide Financial System 61 Procurement Cards

62. Statewide Financial System 62 Process Definition: Using Procurement Cards Procurement Card:  Each procurement card must be assigned to an individual user  Procurement card transactions will be loaded directly into SFS from Citibank  The procurement card reconciliation is the online process of reconciling, reviewing and approving the transactions made on a procurement card  The reconciliation process will directly redistribute the credit card clearing account to agency expense accounts

63. Statewide Financial System 63 SFS Business Process Flow: Process Purchase Card Transactions

64. Statewide Financial System 64 Procurement Card – Search for Staged Transactions If Proxy, search for employee 64

65. Statewide Financial System 65 Staged Transactions Awaiting Verification

66. Statewide Financial System 66 Associate PO to Transaction Line

67. Statewide Financial System 67 Purchase Details Default From The Selected PO

68. Statewide Financial System 68 Distributions If associated with PO, this comes from the PO. If not, will pull from employee defaults or can be entered manually

69. Statewide Financial System 69 Verify Transactions Reconciler will only be able to verify transactions

70. Statewide Financial System 70 Approve Verified Transactions Approver will only be able to approve verified transactions

71. Statewide Financial System 71 Procurement Cards Summary Summary 1SFS users reconcile procurement card transactions using online transactions. 2Users can apply a procurement card to requisitions or POs in the SFS. This provides more detailed tracking of the transactions. 3Each procurement card has a single responsible user or proxy who must reconcile the card on a regular basis.

72. Statewide Financial System 72 Receiving

73. Statewide Financial System 73 Process Definition: Receiving Receiving:  Is the process of indicating within the SFS that goods or services have been appropriately delivered by the vendor  Receiving is performed against a purchase order for transactions where receiving is required Inspections:  Are performed in the SFS if the ‘inspection required’ option was selected on the PO line  Agencies will record the results of these inspections within the SFS Return to Vendor:  Is a document to initiate the process of returning defective materials, too many items, items shipped in error, and non required items to a vendor. This is typically completed after obtaining a Returned Merchandise Authorization (RMA) from the vendor

74. Statewide Financial System 74 SFS Business Process Flow: Manage Receipts – Goods

75. Statewide Financial System 75 SFS Business Process Flow: Manage Receipts – Services

76. Statewide Financial System 76 SFS Business Process Flow: Return to Vendor

77. Statewide Financial System 77 Enter the Receipt Information 77

78. Statewide Financial System 78 Enter a PO Receipt Search Criteria Available 78

79. Statewide Financial System 79 Look Up Ship to Locations 79

80. Statewide Financial System 80 Information Retrieved From the Search Selected Rows Tab Shipping Related Tab

81. Statewide Financial System 81 Receiving Main Search 81 This is for existing receipts in the system

82. Statewide Financial System 82 Receiving Summary Summary 1Agencies can enter receipts directly in the SFS and pull information from POs. 2The SFS calculates the MIR date based on the latest of the received or accepted dates entered into the SFS. 3Buyers can designate a purchase order line as ‘Inspection Required’, which will require inspection be performed and results entered in the SFS.

83. Statewide Financial System 83 SFS Resources for Purchasing  UAT: Late May-August  Additional details and UAT kick off information will be sent out later this month  Training and Job Aids  End User Training Coming in July!  Training Course and Job Aid descriptions available on the SFS website  http://www.sfs.ny.gov/training/agency_user_page.htm http://www.sfs.ny.gov/training/agency_user_page.htm

84. Statewide Financial System 84 SFS Resources  For more information about SFS:  Visit http://www.sfs.ny.gov/http://www.sfs.ny.gov/  To get answers to questions:  Use the Implementation Question Submission (IQS) form available on the SFS web site at http://www.sfs.ny.gov/system/iqsform.cfmhttp://www.sfs.ny.gov/system/iqsform.cfm  Address other general questions to the feedback@sfs.ny.govfeedback@sfs.ny.gov  For Direct Agency questions, contact your SFS Deployment Liaison  For more information about SFS:  Visit http://www.sfs.ny.gov/http://www.sfs.ny.gov/  To get answers to questions:  Use the Implementation Question Submission (IQS) form available on the SFS web site at http://www.sfs.ny.gov/system/iqsform.cfmhttp://www.sfs.ny.gov/system/iqsform.cfm  Address other general questions to the feedback@sfs.ny.govfeedback@sfs.ny.gov  For Direct Agency questions, contact your SFS Deployment Liaison