1. Procuring supplies at CERN Presentation for EN
Questionnaire – Risk Matrix)
FP-PI Structure and
Procurement Responsibilities & Rules
Anders Unnervik, Boi-Lan Lemoine September 2014

2. Agenda FP Structure & 2013 Statistics Responsibility
Influences & Procedures
< 10 kCHF
10 to 200 kCHF
> 200 kCHF
Procurement Strategy
8. Payment
«In conclusion; our major contract expires tommorrow, we have no idea of what we want, and no knowledge of the market. It is time to pass this across to the procurement team…»

3. FP Structure & 2013 Procurement statistics
“Bridge the gap between Means and Ends”

4. Accelerators and Technology Section (FP-PI-AT)
Anders UNNERVIK
Boi-Lan Lemoine
Lisa Bellini-Devictor
Dante Gregorio
Cristina Lara
Accelerators and Technology Section (FP-PI-AT)
Admin. and General Infrastructure Section (FP-PI-AG)
Research and Computing Section (FP-PI-RC)
Industrial Services Section (FP-PI-IS)
Purchases of supplies exceeding 200 kCHF for the Accelerators and Technology Sector
All purchases and price enquiries below 200 kCHF.
Purchases of supplies exceeding 200 kCHF for the Admin. and General Infrastructure Sector and the CERN Pension Fund, including CERN's stores orders, insurance and civil engineering works contracts
Purchases of supplies exceeding 200kCHF for the Research and Computing Sector and orders for computing , hotels and conferences
Procurement of services exceeding 200kCHF
Quality Assurance Service for the Procurement Service
Bjorn Jenssen
Ivo Lobmaier
Floris Bonthond
Adam HorrIdge
Sandrine Magnan
Nordine Azizi
Sarah Pamelard
Dominique Trolliet
Arielle Gaidon
Laurence Madinier
Laszlo Abel
Fatima NAJEH
Hiba GERSTER
Fleur ZROUNBA
Sebastien SONNERAT
Alexandra HAHNEL-BORGEAUD
Stephanie BLANCHARD
Sandra BENOIT-GODET
Alexandre TABARY
Emilia KWIATKOWSKA
Anne Mansuy
Pascal Droux
Aissa BouBOU
Gaelle Breuillaud

5. 1.2 Procurement function @ CERN
Close link between the procurement function and organizational objectives and strategies;
Unlike private sector where the focus is profit, CERN is accountable to the taxpayers of its member states whose money is being spent, including disappointed bidders and potential suppliers;
Procedures and practices have been put into place to stand up to the scrutiny of auditors and member states on purchasing decision made.
CERN — 28/2/14
Purchasing Supplies — Procurement Strategy

6. 1.3 Procurement objectives @ CERN
The Procurement and Industrial Services (FP-PI) Group procures all supplies and services for CERN, meeting the:
specified and contractual technical,
delivery and performance requirements
at the lowest possible overall cost,
while achieving balanced industrial return for the CERN Member States.
CERN — 28/2/14
Purchasing Supplies — Procurement Strategy

7. 1.4 What Supplies did we buy in 2013?
352 Million CHF

8. 1.5 What supplies did we buy for EN in 2013?
CERN — 28/5/14
All amounts are in Swiss francs (MCHF)

9. 1.6 What services did we buy in 2013? 166 MCHF
All amounts are in Swiss francs (MCHF)

10. 1.7 What Services do we buy for EN ?
CERN — 28/5/14
All amounts are in Swiss francs (MCHF)

11. 1.8 Industrial return status
Well and poorly balanced status for adjudication purposes for the period
1 March 2014 – 28 Feb 2015
Supplies
Industrial Services
Return Coefficient
Return Coefficient
Target: 0.91
Target: 0.4
Austria
0.55
0.48
Belgium
0.34
0.01
Bulgaria
0.75
0.38
Switzerland
4.50
6.96
Czech Republic
0.90
0.00
Germany
0.62
0.08
Denmark
0.28
2.41
Spain
0.47
1.04
Finland
0.45
France
1.88
2.80
United Kingdom
0.35
0.42
Greece
0.36
0.09
Hungary
1.31
Israel
0.65
Italy
0.81
0.25
Netherlands
0.43
0.93
Norway
0.18
Poland
0.69
Portugal
1.19
0.10
Romania
Serbia
Sweden
0.40
Slovakia
0.30
Sub-Total
0.91
Other States
Targets
Based on payments in 2010, 2011, 2012 and on payments and outstanding commitments for 2013
CERN — 28/5/14
CERN/FC/5806/RA

12. 1.9 Industrial return supplies from the lowest return to the highest
Return
Industrial
Coefficient
return
2013
Norway
0.2
0.11
0.18
Denmark
0.16
0.58
0.28
Slovakia
0.32
0.31
0.3
Belgium
0.29
0.41
0.34
United Kingdom
0.33
0.35
Greece
0.38
0.25
0.36
Romania
0.44
Sweden
0.39
0.46
0.4
Serbia
0.06
0.61
0.42
Netherlands
0.43
Finland
0.5
0.45
Spain
0.86
0.47
Austria
0.51
0.52
0.55
Germany
0.72
0.62
Israel
0.6
0.65
Poland
0.76
0.69
Bulgaria
0.37
1.52
0.75
Italy
1.22
0.81
Czech Republic
1.13
0.9
Portugal
1.29
0.74
1.19
Hungary
2.17
1.31
France
2.05
1.88
Switzerland
4.88
4.57
4.5
CERN — 28/5/14
CERN/FC/5806/RA

13. Division of responsibilities in procurement @ CERN2
Division of responsibilities in CERN

14. 2.1 Management Responsibilities
(i) Management, Project Leaders/Coordinators:
Understand CERN’s broader strategies and objectives;
Identify procurement objectives & formulate strategy
Determine critical success factors and KPI’s;
Ensure cooperation between managers, technical and procurement staff by means of review committees ;
Review the effectiveness
of decisions and performance;
Encourage continuous improvement of the procurement process.
CERN — 28/2/14

15. 2.2 Technical Responsibilities
Evaluate the need and specify requirements;
Consult procurement staff
Plan realistically
Allow sufficient time for the procurement process;
Avoid splitting requirements;
Avoid over-specifying requirements;
Keep informed on market developments;
Monitor contractor’s performance;
Inform the procurement as soon as
problems arise!
CERN — 28/2/14
Purchasing Supplies — Procurement Strategy

16. 2.3 Procurement Responsibilities (1)
(iii) Procurement :
Formulate and implement procurement strategies for each requirement in collaboration with the technical officers;
Assist in the development and review of the technical specifications with technical officers;
CERN — 28/2/14
Purchasing Supplies — Procurement Strategy

17. 2.4 Procurement Responsibilities (2)
(iii) Procurement :
Draw up the tender forms, based on the technical specifications, formulate the basis of adjudication, prior to seeking offers;
Ensure that bidding documents are clear, concise and consistent in collaboration with the technical officers.
CERN — 28/2/14
Purchasing Supplies — Procurement Strategy

18. 2.5 Procurement Responsibilities (3)
(iii) Procurement :
Negotiate favorable conditions with suppliers;
Contract administration;
Assist in the continuous improvement of the procurement process.
CERN — 28/2/14
Purchasing Supplies — Procurement Strategy

19. 2.6 Fraud issues
Fraud or perception of Fraud will have a negative impact on the organisation!
Bid rigging - where suppliers collude with or without the knowledge of CERN Staff to control the tender process.
Manipulation of specifications – where inadequate bid specifications in order to facilitate the selection of a favored bidder
Corruption – where CERN staff leak helpful information to a favored bidder while withholding such information from other bidders.
Reminder:
Do not pick up goods from the suppliers premises
Do not ask firms to deliver supplies prior to the establishment of an order.
CERN — 28/2/14
Purchasing Supplies — Procurement Strategy

20. Influences & Procurement Procedures3
Influences & Procurement Procedures

21. 3.1 Influences on Procurement Strategy
4. Cost
5. Non-cost factors
3. Supply market
6. Risks
2. Demand
CERN — 28/2/14
Strategy
1. Objectives
7. Stakeholders
Purchasing Supplies — Procurement Strategy

22. 3.2 Definition of Supply contracts:
Contracts for supplies of equipment including R&D contracts, machinery, magnets, electricity, telecommunications and insurance contracts as well as maintenance and leasing contracts covering data processing, printing and telecommunication equipment.
CERN — 15/08/11
Purchasing Supplies — Procurement Rules

23. Procedure = ƒ( Price estimate )
3.3 a function of Price:
Procedure = ƒ( Price estimate )
CERN — 15/08/11
Purchasing Supplies — Procurement Rules

24. 3.4 Thresholds: Purchasing Supplies — Procurement Rules
CERN — 15/08/11
Purchasing Supplies — Procurement Rules

25. 3.5 Time:
CERN — 15/08/11
Purchasing Supplies — Procurement Rules

26. Requirements below 10’000 CHF
Range: 0 CHF – 1000 CHF
Range: 1’000 CHF – 5’000 CHF
Range: 5’000 CHF – 10’000 CHF 4
‘ Centrale d’Achat 10 kCHF’
Ms. Sarah Pamelard 0 CHF – 1’000 CHF
Ms. Arielle Gaidon 1’000 CHF – 5’000 CHF
Ms. Laurence Madinier “ “
Ms. Dominique Trolliet 5’000 CHF – 10’000 CHF (*)

27. Important note concerning follow-up:
Usually once the Order is placed (following the DAI) the Contractor will send a confirmation to the Procurement Officer, which the Procurement Officer will transmit to the Technical Officer. The Technical Officer will then ensure the follow-up of the Order. In case of a problem the Technical Officer should immediately contact the Procurement Officer.
Purchasing Supplies — Procurement Rules

28. 6.2 Definitions COUNTRY OF ORIGIN :
The country in which the supplies (including their components and sub-assemblies) are manufactured or undergo the last major transformation by the contractor or his sub-contractor(s).
CERN PAYMENT TERMS:
One month net from acceptance of the supplies by CERN and receipt of a correct invoice.
VALID SINGLE TENDER JUSTIFICATIONS:
The compatibility with supplies already installed at CERN.
No technical equivalence on the market.
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

29. 6.3 Order value below 1k CHF (Automatic)
Only one written offer is necessary
Orders are sent by fax
If purchasing support is required please select ‘’no’’ in the field ‘’ automatic treatment”
Regular controls are made by purchasing to insure no ‘multiple orders’ are made (salami tactic)
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

30. 6.4 Saving Time & Increasing Efficiency
CAUSES FOR DELAYS (Orders below 1k CHF)
Incorrect or missing information in supplier entry (especially wrong fax number)
CERN General Terms & Conditions not accepted
Advance payment requested
If the country of origin not indicated it is defaulted to firm’s country
Order does not have a value if price entered is ‘’Approx’’
Currency is incorrect
For Swiss suppliers, an A/OI form needs to be prepared by procurement and will be sent to the firm’s commercial contact
Invoices must be sent to
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

31. 6.5 Order Value between 1k CHF to 5k CHF
One written offer is necessary
Simplified template available on FP site
Orders are sent by post
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

32. 6.6 Saving Time & Increasing Efficiency
CAUSES FOR DELAYS (Orders between 1k CHF and 5k CHF)
Supplier entry (not filled out or wrong supplier)
Country of origin (not indicated or not explicit in supplier’s offer)
Transport terms not indicated or not aligned with FCA or DAP, Incoterms 2010 CERN
Suppliers request advance payments
Information in EDH (DAI) does not match offer
Only one line is created for several articles
Data entered in EDH in French and English (mix) or inconsistent with language of offer (ENG/FRA)
DAI received by FP from same user/group is for the same supplier and/or the same product
CERN — 30/05/14
Supplier entry (not filled out or wrong supplier):
Before creating a DAI please make sure to have entered the right supplier and address. If the supplier does not exist please request creation via
If the supplier exists but has changed address please request modification to :
Country of origin (not indicated or not explicit in supplier’s offer)
The country of origin needs to be validated with the supplier and a written confirmation should be joined to the DAI. Regular controls take place.
Transport terms not indicated or not aligned with FCA or DAP, Incoterms 2010 CERN
Transport is included if the supplier has confirmed that there offer includes transport to CERN. (DAP)
If not, their offer should include packaging and we will give them our carrier information for delivery to CERN. (FCA)
Please check this information before indicating if delivery is included or not.
Suppliers request advance payments
This is contrary to CERN conditions. In this case the purchaser has to contact the supplier to obtain acceptation of CERN conditions. In case it does not work the purchaser has to check with technical party if another supplier can be selected.
If not than a request for acceptation advance payment is issued to head of FP department (Thierry Lagrange) .
Information in EDH (DAI) does not match offer
A difference in quantity can lead to a difference in part price. The fact of ordering one part and not all the parts on the offer can change transport costs...Any change means a new offer needs to be requested unless otherwise mentioned on the offer.
Only one line is created for several articles
The reception should control all incoming goods. Each goods which is ordered should appear on the order. If only one line is created stating ‘’ 1 lot as per offer xxxx’’ and that what the user calls a ‘’lot’’ is in reality 20 different parts and we receive only 10 their will be a problem for the reception of the goods.
Data entered in EDH in French and English (mix) or inconsistent with language of offer (ENG/FRA)
DAI received by FP from same user/group is for the same supplier and/or the same product
For every need for an amount above 5000 CHF, a minimum of three Bids have to be requested.
The Technical Officer can request Bids by himself up to a limit of 10 000 CHF.
Please use the  PE - Supplies - Simplified Enquiry Template on our website.
For amounts above CHF, would you please contact the procurement service
Purchasing Supplies — Procurement Rules

33. 6.7 Range: 5k CHF – 10k CHF
Bids can be requested by Technical Officer provided CERN Procurement Rules are followed:
At least 3 written bids to be sought
Simplified template available
If < 3 firms contacted  single tender procedure
Handled by FP-PI’s “Centrale Achat 10K”
Firms from CERN’s Member States
If possible, firms from very poorly balanced Member States.
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

34. 6.8 Saving Time & Increasing Efficiency
Causes for Delay (5k CHF – 10k CHF)
All the same as previous +
Incomplete justification attached
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

35. Requirements ranging between 10k CHF and 200k CHF
Range: 10k CHF – 50k CHF
Range: 50k CHF – 200k CHF 5
‘ Centrale Achat 200k CHF
Ms. Sandrine Magnan
Mr. Nordine Azizi
Mr. Adam Horridge

36. Purchasing Supplies — Procurement Rules
CERN — 15/08/11
Purchasing Supplies — Procurement Rules

37. Price enquiry documents in English 3 to 5 firms will be contacted
5.2 Range: 10k CHF – 200k CHF
Price enquiry documents in English
3 to 5 firms will be contacted
Annexes may include:
Technical drawings
Description & Quantities Estimate (DQE)
“Working on the CERN Site” (PSO/ /Rev.5)
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

38. Range: 10k CHF – 200k CHF 5.3 Adjudication Lowest Compliant Bid
i.e. to the firm whose bid
complies with
the technical requirements
the financial requirements
the delivery requirements
And is the lowest cost
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

39. Range: 10k CHF – 200k CHF 5.4 Adjudication
Price based on Free Carrier basis (FCA as per Incoterms 2010), i.e.:
Without transport costs
With packing and loading
No disadvantage to firms located in distant countries
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

40. Range: 10k CHF – 200k CHF 5.5 Adjudication
However, Supply contracts shall be adjudicated on a DAP basis (Delivered at Place as per Incoterms 2010) if the ratio of DAP price of the lowest FCA bid to the lowest DAP bid exceeds 1.10.
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

41. Range: 10k CHF – 200k CHF 5.6 Adjudication
Supply contracts exceeding 100kCHF shall be subject to the alignment rule:
2 possibilities, if lowest bid compliant is
from poorly balanced Member State  the bidder gets the contract
from well balanced Member State and if first lowest bid compliant is from poorly balanced Member State is < 20% and if it aligns with cheapest bid  this bidder gets the contract
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

42. In case of a Price Enquiry (PE):
Range: 10k CHF – 200k CHF 5.7 Saving Time & Increasing Efficiency
In case of a Price Enquiry (PE):
Contact the purchasing officer to define the best strategy (in function with the estimated value; risks; critical path);
Schedule enough time to prepare the final version of the technical specification document (including HSE review) in English;
Prepare a technical questionnaire for critical supplies;
Draw up a list of potential suppliers bearing in mind “CERN industrial return”.
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

43. Range: 10k CHF – 200k CHF 5.8 Saving Time & Increasing Efficiency
In case of single tender, a justification memo attached to the DAI, explaining:
Why you need this supply/service ?(Project/Event)
What are the technical reasons to select such supplies/services?
Why is the supplier you have contacted the only capable to deliver such a supplies/services.
If you have undertaken a research with other suppliers, please provide the details – selection criteria, etc.
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

44. DO NOT: Send a DAI without justification in case of single tender;
Range: 10k CHF – 200k CHF 5.9 Saving Time & Increasing Efficiency
DO NOT:
Send a DAI without justification in case of single tender;
Send a DAI with only 2 offers
(minimum is three).
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

45. Requirements exceeding 200k CHF
Range: 200k CHF – 750k CHF
Range: 750k CHF and above 6
>750k CHF
Mr. Bjorn JENSSEN (Backup Mr. Ivo LobmaieR)
200k CHF up to > 750k CHF
Mr. Bjorn Jenssen (backup Mr. Floris Bonthond)

46. Purchasing Supplies — Procurement Rules
CERN — 15/08/11
Purchasing Supplies — Procurement Rules

47. Start-up Meeting (Strategy & Planning) Publication on FP web page
Range: exceeding 200k CHF 4.2  Market Survey (Sourcing of Firms)
Departmental Request (DR)
Start-up Meeting (Strategy & Planning)
Publication on FP web page
MS Documents (Technical Description; Technical Questionnaire; Qualification Criteria)
Technical Auditing of Documents (Specification Committee)
Sourcing of Firms (Technical Officer; Procurement Officer; DB; EOI; ILOs)
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

48. Range: exceeding 200k CHF 4.3 Invitation to Tender  IT
Further to Market Survey
IT Documents drafted by Technical (Technical Specification – Drawings – Questionnaire – and Procurement (Tender Form)
Technical prepares Risk Matrix for IT > 750k CHF
Specification Committee Meetings scheduled by EN/MEF – IT documents reviewed and MS results presented
IT process (Issuance, Bidders conference, clarifications)
Electronic Bidding tool (receipt of bids)
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

49. Range: exceeding 200k CHF 4.4 IT  Bid assessment
Bids shall be examined to establish that they comply with the technical, financial and delivery requirements in all respects
Communication of relevant information to bidders limited to:
Procurement Service (< 750k CHF)
A member of Directorate (≥ 750k CHF)
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

50. Range: exceeding 200k CHF 4.5 Adjudication
Lowest Compliant Bid i.e. to the firm whose bid:
Complies with the technical, financial and delivery requirements
And is the lowest cost
Taking into account the origin of the offer in order to ensure balanced industrial return coefficients for the Member State
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

51. Range: exceeding 200k CHF 4.6 Adjudication
Price based on Free Carrier basis (FCA as per Incoterms 2010), i.e.:
Without transport costs
With packing and loading
No disadvantage to firms located in distant countries
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

52. Range: exceeding 200k CHF 4.7 Adjudication
However, Supply contracts shall be adjudicated on a DAP basis (Delivered at Place as per Incoterms 2010) if the ratio of DAP price of the lowest FCA bid to the lowest DAP bid exceeds 1.10.
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

53. Range: exceeding 200k CHF 4.8 Industrial Return Coefficient
For Supply contracts and for a 12-month period starting on 1st March, defined as:
“The ratio between that Member State's percentage share of all purchases of supplies (excluding purchases funded by non-Member States) during the preceding four calendar years and that State's percentage contribution to the Budget over the same period.”
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

54. Poorly balanced  < 0.91 Well balanced  ≥ 0.91
Range: exceeding 200k CHF 4.9 Industrial Return Coefficient for Supplies
For period 1 March 2014 – 28 Feb. 2015:
Poorly balanced  < 0.91
Well balanced  ≥ 0.91
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

55. Range: exceeding 200k CHF 4.10 Well balanced Member States
For period 1 March 2014 – 28 Feb. 2015:
France
Hungary
Portugal
Switzerland
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

56. Range: exceeding 200k CHF 4.11 Origin of the Offer
According to standards defined by EU:
“the country(ies) where the supplies (including their components and sub-assemblies) are manufactured or undergo the last major transformation by the contactor or his sub- contractor”
If at least 60% of the total amount of the bid comes from a poorly balanced MS, then the whole bid will be treated as that from a bidder in a poorly balanced MS
CERN — 30/05/14
Purchasing Supplies — Procurement Rules

57. Range: exceeding 200k CHF 4.12 Alignment Rule
2 possibilities, if lowest bid compliant is
from poorly balanced Member State  the bidder gets the contract
from well balanced Member State and if first lowest bid compliant is from poorly balanced Member State is < 20% and if it aligns with the lowestt bid  this bidder gets the contract
CERN — 15/08/11
Purchasing Supplies — Procurement Rules

58. When should the Procurement Strategy be defined?7
When should the Procurement Strategy be defined?

59. 7.1 Strategic analysis 1. Resources Make or buy?
Availability of key staff
2. Rules & Procedures:
Estimated amount
Price enquiry, Invitation to tender, single-source?
Sources of funding (CERN budget code, visiting team)
FC approval?
Service or Supply?
BVFM or lowest compliant bidder?
Urgency of requirement?
CERN —28/2/14
Purchasing Supplies — Procurement Strategy

60. 7.2 Strategic analysis
Functional specification or Performance specification
Build-to-Print specification
Prototypes
Standard, Non-standard or Prototypes?
CERN —28/2/14
Purchasing Supplies — Procurement Strategy

61. 7.3 Contract management lifecycle
Selecting the procurement strategy
Specifying the activity
Drafting and issuing tender documents
CERN — 28/2/14
Evaluating the bids
Decision and implementation
Monitoring of contract performance
Purchasing Supplies — Procurement Strategy

62. 7.4 When to start? Purchasing Supplies — Procurement Strategy
CERN —28/2/14
Purchasing Supplies — Procurement Strategy

63. After the Order – Payments8
After the Order – Payments

64. 8.1 After the order… Logistics Service (GS-IS-LS) – for supplies
Customs clearance and formalities
Reception of goods by GS
Internal delivery either GS or EN
Accounts Payable (FP-FAS-GPA)
Reception invoices
Control of invoices + clear for payment
Treasury (FP-DI)
Makes payment (checks bank details)
CERN — 30/05/14
Purchasing Supplies — Procurement Strategy

65. 8.2 Invoice Processing by Accounts Payable
Delivery Acceptance
Treasury
✓Technician
EDH
« OK to pay »
Manual
Invoice Controllers
Yes
Goods/Services
Received ? No
Auto
Difference in amount
between order and invoice?
« OK to pay » No
Yes ✓
Request validation technician
(also budget holder/procurement in the case difference > 5%)
CERN — 30/05/14
« OK to pay »
If supplies are received by Reception (GS) and the invoice matches the order, - for automatic orders the invoice are treated automaticaly and payment is effected without the EDH approval flow.
- However if there is a price discrepancy on an automatic order, an AL EDH is created by AP to obtain information/approval regarding the discrepancy.
Why sometimes AL (Approbation de Livraison – Deivery Acceptance) with invoice and sometimes without.
If Goods Reception (GS) receives the goods, the AL EDH document is created automatically – for manual orders.
If AP has receive the invoice, it will create the AL EDH document, and attach the invoice – for manual orders.
AP has foressen a review with FP-PI and the Department DPOs to review the AL EDH – document & approval flow.
Delivery Acceptance
EDH Or
For single orders per invoice
s with attached invoices for multiple orders or complex contracts
FP Department - FAS

66. 8.3 How you can help timely and accurate payments
Invoices
Pass all invoices to Accounts Payable (or tell supplier to do so)
Questions
Direct all questions regarding payment to
EDH Approval documents/ s requesting approval
Treat promptly and only say ‘YES’ if you have received the goods / services ordered and are satisfied
If you Postpone a document, remember to validate it when goods received/tested
CERN — 30/05/14
If technician receives original invoice, this should be send to AP by internal post.
I technicam erceives invoice by – should forward the to AP
AP uses the AP’s common which creates a ticketing system to resolve payment isssues. This is more efficient and ensures that all request are attended to.
(5 day rule)
Jan will send list of split of responsability at AP (for FP)
Purchasing Supplies — Procurement Strategy

67. 8.3 Beware EDH Approval documents/emails requesting approval
If you Reject an AL document, Accounts Payable have difficulties tracking the document and shall request details anyway once they are aware of your rejection so as to know what actions to take next (these can include requesting a credit note). AP shall be unable to use the EDH document further (technically there is a 1:1 ratio) so future correspondence on this order cannot be tracked through EDH.
Instead of Rejecting the Invoice, indicate that you do not accept the supplies:
a. Indicate NO at the question
b. Provide an explanation in the comments
c. Then sign the EDH document.
CERN — 30/05/14
If technician receives original invoice, this should be send to AP by internal post.
I technicam erceives invoice by – should forward the to AP
AP uses the AP’s common which creates a ticketing system to resolve payment isssues. This is more efficient and ensures that all request are attended to.
(5 day rule)
Jan will send list of split of responsability at AP (for FP)
Purchasing Supplies — Procurement Strategy

68. 8.3 Exception for partial acceptance
If you do not agree to pay the invoice amount in full contact the procurement officer, so that appropriate contract amendment or negotiation are undertaken. Procurement and Accounts Payable will then advise on the action that needs to be taken.
CERN — 30/05/14
If technician receives original invoice, this should be send to AP by internal post.
I technicam erceives invoice by – should forward the to AP
AP uses the AP’s common which creates a ticketing system to resolve payment isssues. This is more efficient and ensures that all request are attended to.
(5 day rule)
Jan will send list of split of responsability at AP (for FP)
Purchasing Supplies — Procurement Strategy

69. 8.4 Tools available for order and invoice tracking
EDH
At the bottom of the original order you can see the authorization status up to the point the invoice is received.
NB: “Invoice matched to order lines” only means the invoice is received, not that it is paid.
CET (CERN Expenditure tracking)
In the Transactions by Cost Centre view, items appearing in the ‘Charged to Budget Code’ column have been treated by payment by Accounts Payable
It is possible to view the invoice related to items in ‘Charged to Budget Code’ if you include Document number in your column selection
CERN — 30/05/14
Purchasing Supplies — Procurement Strategy

70. 8.4 Tools available - EDH
CERN — 30/05/14
Document Status at the bottom of the DAI shows the approval and delivery progress of the order up to the point where the invoice is matched to the order lines in AP.
This will not show if there is a AL EDH (Delivery Acceptance) document outstanding or when the payment is made.
In the example above, an AL was actually created automatically based on the reception on 19/05, it was approved by the technician, then the invoice was matched to the lines and paid on 21/05.
Purchasing Supplies — Procurement Strategy

71. 8.4 Tools available - CET
CERN — 30/05/14
In CET Transactions by Cost Centre (if you have access) you can search by order (plus many other options)
Anything in the column Charged to Budget Code has been processed by Accounts Payable as ‘OK TO PAY’. In this case you can see the date AP put OK TO PAY was on 21/05. The date the funds will appear in the supplier bank account is up to a week later since the Treasury team generally makes payments 2x per week, and it takes a few days for the bank to make the transfer.
You can see a scan of the invoice if you click on the orange icon beside Document number in the charged line
Purchasing Supplies — Procurement Strategy

72. Questions
CERN — 30/05/14
Purchasing Supplies — Procurement Strategy