1. Welcome to the Accounts Payable Overview Course

2. Welcome and Introductions Logistics Ground Rules Course Objectives
Instructor, Ramon Mira
Welcome and Introductions
Logistics
Ground Rules
Course Objectives
Course Content

3. Accessing SAP

4. Accessing SAP

5. Accessing SAP | Login

6. Course Agenda Chapter Description 1 AP Integration with Procurement 2
Invoices and Credits Memos Overview 3
Travel and Vendor Reporting Overview

7. By the end of this class, you will be able to: Describe 3 way matching
Course Objectives
By the end of this class, you will be able to:
Describe 3 way matching
Describe encumbered and non encumbered invoices
Describe Filenet integration with SAP
Describe Work Distribution with SAP
Describe PO Based Invoice Processing
Describe Non-PO Invoice Processing
Describe Credit Memo processing
Travel Related Payments
Describe Vendor Reporting

8. Course Chapters Chapter Description 1 AP Integration with Procurement2
Invoices and Credit Memos Overview 3
Travel and Vendor Reporting Overview

9. By the end of this Chapter, you will be able to:
Chapter Objectives
By the end of this Chapter, you will be able to:
Describe 3 way matching
Describe encumbered and non encumbered invoices
Describe Filenet integration with SAP

10. Key Change Impacts Current Process Future Process
When receivers are not entered by locations or schools they prevent posting of invoices
Invoices will be posted but will not be paid until Goods Receipt is performed.
Schools will receive an saying no Goods Receipt is present
Only selected encumbrances carry over into new fiscal year. Funding expiration delays payment of invoices
The process will remain the same encumbrances only selected encumbrances carry over into new fiscal year.
The encumbrance is dependent on carry over policy of underlying fund
Vendor Data on PO may be different than Vendor Data on Invoice which requires modification.
A different Address on Invoice will not delay entry of Invoice into system. Alternate addresses should already be in the Vendor Master Data

11. Key Change Impacts contnued
Current Process
Future Process
PO Based Invoices are entered manually into IFS from FileNet
PO Based Invoices will be automatically transferred from FileNet to SAP. Minimal data entry required
Difficult to Identify and track credit memos-Not Posted until ready to apply.
SAP tracks documents by giving them a document type. Credit memos have their own document type and will be posted as they come in.
Filenet is Document Management System
Filenet will remain Document Management System

12. Key Change Impacts contnued
Current Process
Future Process
IFS is System of Record for Payments
IFS will no longer be used to record invoices or payments. It will exist only to review history and will contain information only up to when SAP is turned on.
Funds Availability Check is performed when invoice is being processed for payment
Funds availability will be checked several times to ensure funds are available upon Invoice entry. The previous problem of funds not being available when an PO Based invoice is entered should be non existent.

13. Key Change Impacts contnued
Current Process
Future Process
Travel related forms are incomplete and missing approvals and forms
The travel process has changed and several checks have been put in place to encumber funds and to ensure approvals and forms are complete. Travelers will still need to provide supporting documentation such as hotel folio and receipts for reimbursements
Most documents are paper based and require wet signatures and physical approvals
The approvals will be routed automatically for approval. Schools will provide supporting documentation via or paper
Difficulty in accessing vendor account detailed information
Fast and easy historical reporting

14. Purchasing Process Overview
Create Shopping Cart
Approve Shopping Cart
Purchase Order
Confirmation/ Goods Receipt
Vendor Payment
The following Purchasing to Payable flow will provide you with an overview of the process…
All schools and offices will use the new Supplier Relationship Management (SRM) system to create Shopping Carts…
After the Shopping Cart is approved and if the purchase is from…a District Warehouse, the system will automatically create a Stock Transport Order (STO)…
OR if the purchase is from an outside vendor, the Purchase Order is created and issued to the vendor.
When the goods or services are received, the school or office will then enter a Confirmation.
When Accounts Payable receives the vendor invoice, the quantity and totals are matched between the invoice, PO, and Goods Receipt.
When a 3-way match is achieved, payment to the vendor can then be processed.

15. PO Based Invoice Verification Process:
3-Way Match
PO Based Invoice Verification Process:
Three-way-match functionality: goods receipt matches purchase order and invoice.
3-Way Match
Goods Receipt
Purchase Order
Invoice = =

16. Goods Receipt at Location
Each location will perform goods receipt
An invoice can be entered by Accounts Payable without a goods receipt
An invoice entered without a goods receipt will trigger an to location warning of no receiver
An invoice cannot be paid unless goods receipt is entered

17. Notification
Missing Goods Receipt An Automatic reminder is sent when an invoice is processed and a Goods Receipt is missing.

18. Confirmation/ Goods Receipt
Encumbarance
Funding for PO Based Invoices will be encumbered before the invoice is received
Encumbered
Confirmation/ Goods Receipt
Vendor Payment
Approve Shopping Cart
Purchase Order
Create Shopping Cart

19. FileNet Integration with SAP
FileNet will remain as the Document Management System
FileNet will be updated nightly to stay in sync with changes to Vendor and PO information
Only Invoices that can be posted based on PO and Vendor validation will be allowed to be sent to SAP
FileNet will keep Invoices that require further data evaluation
FileNet will link to SAP and will display the scanned invoice automatically when the invoice is worked in Universal Work List

20. Filenet Invoice Displayed Alongside SAP

21. Account String Crosswalk
Accounting Structure Example: Bryson Elementary
Fund
001
Org
2589
Location
2589
Program
4170
Object
4310
IFS
Fund
Cost Center
Functional Area
GL Account
430010
SAP
Goal
1110-
Function
1000-
Program
14170
IFS
SAP
Changes
Fund
Dropt first 0, add a 0 at the end separate with a dash (-)
Object
GL Account
numbering scheme?
Location
Cost Center
Add a “1” in the last two digits identifies the primary location by “01” or “02” secondary location (i.e., magnet school)
Program
Functional Area
SACS (Standardized Account Code Structure) Goal-Function-Program
This is to provide a translation of what IFS school users are familiar with entering for the accounting details to what they will enter in the Cost Assignment area of a Shopping Cart in SRM:
Fund=Fund: Identifies the type of funding source and what activities can be charged to that fund. That term remains the same in the new system.
Organization Code/Location Code=Cost Center: Identifies the school or office location code.
It was 4-digits, it’s now 7 digits.
It has a leading digit of 1 for schools and offices, or if you are a Job Cost Office some of your cost centers could begin with a leading digit of 9.
The Cost Center number also ends with two digits that indicate if it’s a primary location if it ends with 01 or if it’s a secondary location (i.e., magnet schools) it will end with 02…03…etc.
Object=General Ledger Account: (Defaults) Code to identify how you spend your Program Dollars. G/L Account is equivalent to Commitment Item.
Program = Functional Area: SACS Goal-Function-Program
Goal=Identifies where the money will be used,
Function=Identifies what the money will be used for,
Program=the LAUSD specific Program Code with a leading digit added to increase capacity and flexibility – will start with a 1 if regular, 7 if specially funded, 9 if Job Cost)
Grant: Will default to “NOT RELEVANT” if the fund and program are not grant-related.
Controlling Area: LAUSD’s Company Code (Defaults to 1000)
There is Glossary for the Account String Code Definitions at the end of this presentation for your review.

22. Account String Wizard: T-Code ZWZRD
You can access this Account String Wizard to help you translate your IFS codes to SAP codes.

23. Work Distribution with SAP
Work Distribution for PO Based and Non PO Based:
PO Based Invoices:
Each processor will be assigned a range of vendors based on name
FileNet will automatically assign invoices from those vendors to the processor
Non PO Based Invoice:
They will go to one general inbox for processing without being assigned

24. Course Chapters Chapter Description 1 AP Integration with Procurement2
Invoices and Credit Memos Overview 3
Travel and Vendor Reporting Overview

25. By the end of this Chapter, you will be able to:
Chapter Objectives
By the end of this Chapter, you will be able to:
Describe Work Distribution with SAP
Describe PO Based Invoice Processing
Describe Non PO Based Process
Describe Credit Memo Processing

26. Invoices that are PO Based will be 3 Way Matched
PO Based Invoices
Invoices that are PO Based will be 3 Way Matched
Funding for these POs will have been checked upon creation of the Shopping Cart (Requisition) and Encumbered upon creation of the Purchase Order
When posting the Invoice the system will check to see if the quantity or amount that was on the PO has been exceeded.
It does not do a funds availability check, the funds have already been encumbered by the PO.

27. PO Based Invoice Processing
Invoices Scanned
FileNet
Invoice Indexed
FileNet
Invoice Validated
FileNet
Invoices Appear in Payer Queue A
FileNet
Invoice Sent to SAP
Invoice Received in SAP
Universal Work List
AP Central Clerk
Process Invoice
MIRO
AP Central Clerk
Post Invoice
MIRO
AP Central Clerk

28. PO Based Invoice Processing
Invoices will be Scanned into FileNet
Indexing will continue in FileNet, using established guidelines
Invoices will be validated to confirm PO exists and Vendor is created correctly
Once validation is complete valid invoices will appear in Payer Queue A
The Payer will select invoices they would like to process and will send to SAP using FIFO

29. PO Based Invoice Processing continued
Invoices will be received in the SAP Universal Worklist ready to be processed
The Invoices will be processed and posted in SAP using the FileNet scanned invoice as reference

30. Entering a PO Based Invoice

31. Non-PO Based Invoice will have two different processes: Locations
NON PO Based Invoices
Non-PO Based Invoice will have two different processes:
Locations
Accounts Payable
Locations will process invoices which will then be routed to Accounts Payable for validation/approval
Accounts Payable will have the ability to enter Non PO Based invoices directly

32. Non PO Based Invoice Processing - Locations
Create Non-PO Based Invoice
FV60
AP Site Clerk
Save as Completed Initiates Workflow
FV60
AP Site Clerk
Invoice Appears in Processing Queue
Universal Work List
AP Central Clerk
Process Invoice
Universal Work List
AP Central Clerk
If invoice is Approved and Additional Approval is required Invoice is routed automatically
Approve/Reject Invoice
Universal Work List
AP Central Clerk
Additional Approval
Universal Work List
AP Central Specialist
If invoice is Approved and No Additional Approval is required Invoice is auto posted

33. Non-PO Based Invoice Processing
Non-PO Based Invoices will be scanned and attached to SAP document by User creating the invoice.
Attachments can be in the following format:
Word (doc)
Excel (xls)
s (msg)
Text (txt)
Image (jpeg, gif, bitmap)

34. Non PO Based Invoice Processing - Locations
The Site Clerk will enter Non PO Invoice into SAP
Upon saving with Save as Completed button it will trigger approval workflow
The invoice will appear in the AP Central Clerk’s work queue for review and approval
If invoice is approved, SAP will validate if additional approval is required (based on vendor and invoice amount).
If additional approval is required, the invoice will be automatically route to AP Central Specialist’s work queue for review and approval. Otherwise, the invoice will post automatically.

35. Non PO Based Invoice Processing – Account Payable
If No Additional Approval is required Invoice is auto posted
Create Non-PO Based Invoice
FV60
AP Central Clerk
Save as Completed
FV60
AP Central Clerk
If Additional Approval is required Invoice is routed automatically
Additional Approval
Universal Work List
AP Central Specialist

36. Non PO Based Invoice Processing – Accounts Payable
This process is performed when a paper invoice is received by Accounts Payable.
AP Central Clerk will review and input the invoice in SAP.
Upon clicking the Save as Completed button SAP will validate whether a second level approval is required based on vendor and invoice amount.
If a second level approval is required, the invoice will be routed to the AP Central Specialist’s work queue for review and approval.
If no additional approval is required, the invoice will post automatically.

37. Entering a Non PO Based Invoice

38. Processing Credit Memos
A school or department will receive a credit memo and it will be forwarded to Accounts Payable
The Accounts Payable staff will enter credit memo
The credit memo will post immediately

39. Credit Memo Processing
Create Credit Memo
FB65
AP Central Clerk
Save as Completed
FB65
AP Central Clerk

40. Course Chapters Chapter Description 1 AP Integration with Procurement2
Invoices and Credit Memos Overview 3
Travel and Vendor Reporting Overview

41. By the end of this Chapter, you will be able to:
Chapter Objectives
By the end of this Chapter, you will be able to:
Describe the Travel Related Payments Process
Describe Vendor Master Data
Describe Vendor Reporting

42. Travel Expense Processing
Two different Processes for Travel Expenses
Schools
Central Offices
AP will enter actual expenses for Schools
AP will confirm/approve not enter expenses for Central Office

43. Schools Travel Expenses Process
School Submits with Travel Receipts to AP
Create Estimated Expense Report
Procurement
Enter Actual Expenses
PR05
Central Travel Support Specialist
Attach Scanned Documentation
PR05
Central Travel Support Specialist
Expenses Paid in Paycheck

44. School Travel Expense Report
This process is performed when a school submits a to the Procurement office
The Procurement office will create an estimated expense report
Once travel is completed the traveler will submit with receipts to AP
AP will enter actuals in the previously created estimated expense report
Scanned supporting documentation will be attached
The expenses will be paid in paycheck

45. Central Office Travel Expenses Process
Enter Actual Expenses
Central Office Staff
Attach Scanned Documentation
Central Office Staff
Create Estimated Expense Report
Central Office Staff
Expenses Paid in Paycheck
Expenses Approved by Head of Organization
Head of Organization
Expenses Approved by Accounts Payable
PR05
Central Office Travel Specialist

46. Central Office Travel Expense Report
This process is performed when a traveler submits a to their Department Administrative Support Staff
The Department Administrative Aide will create an estimated expense report
Once travel is completed the traveler will submit with receipts to the Department Administrative Aide
The Aide will enter actuals in the previously created estimated expense report
Scanned supporting documentation will be attached
The expenses will be pain in paycheck

47. Reports allow drill down capability Examples of available reports:
Vendor Inquiries
SAP has many reports to aide in finding detailed vendor line item information
Reports allow drill down capability
Examples of available reports:
Display Vendor Account Line Balances
Display Vendor Line Items

48. BASE Training Center Website [http://basetraining.lausd.net] ]
BASE Training Center Single point of access for SAP End-User Documentation/Materials.
This website will make it easier for end users to access related business process materials.
The materials will include the following:
Course Presentations
Simulations
Quick Reference Guides
Job Aids
There will be Refresher (Open House) sessions and will be included in the Announcement section.

49. You have just completed the ….course. Thank you for attending!